The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-05-14


All other countries ....... 49, 1854 166, 252
From these figures the following IL
Tons. =
In 1889 the production of all other
countries exceeded that of North
In iSS7 afte o eo, wears ;b rro 0S'aSo
duction OF North America eX-
ceeded that of all other coun-
AnnnsI o Sptn;,, q; conner. u, Yorth loo'-OA
America had increased in eight
years -. 80. 129.OO5
Annual output of copper in all
other countries had increased
IN elSht years .....-......-.-... 1I,OSS
Thus it must be seen that if the same
ratio of increase be continued the
American copper syndicate, unless it
goes to pieces on the rocks of over
capitalization and imitation, or meets
disaster through an unforeseen end OF
the demand for copper, can fix the
price of that commodity the world over.
1t hopes to dominate the markets OF
the world. That is the stake the Messrs.
Rockefeller are playing for.
Copper Crash In France.
Success would seem to be only ques-
ton of keeping the production of cop
per in the hands of the syndicate It
is considered doubtful if the scheme
Will be a. success unless foreign mines
be controlled. Should the foreign out
put exceed the domestic output the,
tables might be turned. and the history
of the failure of the SOciete des Metaux
in France be repeated. There is food
for thought in this.
Several years before NJ. Secretan
formed his famous syndicate the pricer
of copper was from 1000 francs to 25OO{
raj In ha all 70.
1000 francs a ton, and this was due to-
the reopening of the famous Rio
Tinto mines in Spain and the discovery
of copper near Lake Superior and other
parts OF the United States, as well as
in South America
The Societe des Metaux was formed
to put the price of copper back and
keep it there. 1t was under the pat
ronage of the Compton d EscOmpte. one
of the most stable financial institutions
of France. From manipulating the
price the company next entered on the
scheme of getting great financial sup
port and purchasing the entire output
of the mines at a fixed price. The prop
osition was favorabIy entertained by
the leading mine owners and mining
companies of the world. and the result
was that contracts were made by which
the Societe des MetauX agreed to take
900 tons a year for three years at
1,5O0 francs a ton. and TO give half of
the profits of the sales to the mine-OWn-
ers and mining companies.
In order to carry out this arrange
ment the syndicate required for outlay
the sum of 225. 600. 900 francs year. and
was further obliged to purchase the
product of those mines which were not
included in it's contract. All would
have been we'll if the syndicate could
have sold copper at the increased price.
but il soon discovered that consumers
would not pay il. Manufacturers salts
fed their needs with old copper. deal
ers refused to replenish their stock, and
the general public used iron and steel
as substitutes for copper.
In the beginning of March. 1889, the
syndicate controlled no less than 10000
tons of copper. scattered in various
parts of the world. French bankers
held a mortgage on most of this stock
The Compton d'Escompte owned cop
per for which ii had paid g. 000.0 900
francs, and it also held second mort
cages on I5.000.000 francs. This enor-
nous investment was more than this
famous old institution could stand.
A crash was inevitable The syndi-
cate was powerless TO maintain the ar
tifcial price. and at the first sign OF
weakening down fell the Rio Tinto and
ather copper shares The Compton
for just at that time the Russian gov
eminent was pressing it for an imme-
date payment of a deposit of q. 100000
francs The officials of the great bank
were devising means TO raise this
money. when suddenly the news reach
ed them that Nj. Defert-Rochereau'
their ally and the manager of the
Compton d'Escompte, had committed
suicide.
Saved By Bank of France.
The sum of 100000 francs was
promptly advanced by few of the
great Paris banks with the object of
relieving the old institution from en-
barrassment. but it did not prove sufti-
Gent Finally NJ. ROuvier. minister or
finance. called a meeting of the lead
ing bankers of Paris and warned them
that there would be a run on their own
banks and that a general panic would
result if they did not give proper as
sistance to the Compton d'Escompte-
The Bank of France then came to the
rescue.
The affairs of the Compton d'Es-
compile were then investigated and 1t
was found that the bank was barely
solvent. AS a result the company was
dissolved. and a new one was formed
with the object OF preserving the iegltl-
mate business that had been carried on
To the advantage of French trade In
Shanghai. Madagascar and in neutral
and colonial markets.
Another severe blow was yet to betal
the French copper syndicate. and 1t
came as the result of the extraordinary
disclosures that were made in regard
to NJ. Secretan and other persons con-
nected with the syndicate The pub
lie was not surprised when 1t heard
of the arrest of these men. At their
trial it was proved that Secretan, act
ing as director. had distributed hctl-
tious profits to holders of copper stock
for 1887 and had used improper means
to bull copper. raising the price from
under 900 france a ton to over Z,VvO
francs However, it may have affected
others. this manipulation apparently
produced the result desired by NJ Sec
retain. since evidence was Forthcoming
in court showing that he had cleared
IA 900 900 francs in two months.
The court found him guilty and he
was sentenced to spend six months IN
PRISON and to pay a fine of 10000 francs.
The case was taken TO the court OF
appeals and the fine was reduced 10
5000 francs