Arizona republican., 1901-11-04
IA CUT IN COPPER
AmaIgamated Threatens to Re-
 duce the Price to F
Plan to Stop Underselling and Force the Independents to an Agreement With the United States Metals Selling Company.

New York Nov. 3-A determined ef- fort is being made by interests identifi- ed with the Amalgamated Copper Co. to secure Jle cooperation of the inde- pendent copper companies of the coun- try for the purpose of maintaining the price of the metal at r cents a pound. 1t is claimed that the independents are selling their product at Ac to 1Ac below the price asked by the United States Metals Selling Co., which is the selling agent of the Amalgamated Copper Co. and the Clark properties.
 In other words, the Amalgamated CO. is holding the umbrella for other com panies, a condition that is eXi5ected to result in further demoralization of the industry if some agreement as to cop per prices is not reached.
 Phelps, Dodge & Co. and the Calumet & Hecla Co, two of the largest inde- pendent copper producers in the coun- try, are included in the list of concerns accused of underselling the Amalga- mated Copper Co. An effort is being made to secure the cooperation of these two companies, but in the event Of failure the Amalgamated Copper Co. is expected to make d drastic cut in the price of copper, which may mean the beginning of a prolonged trade war
 Amalgamated Copper interests admit  ing as q result of it's efforts to maintain the price of copper. The independents are able to dispose of their copper be- cause of their willingness ot sell below the price asked by the combine.
 The result has been that the Amal- gamated Copper Co. finds itself unable to reduce its large surplus. while condi- tions with the independent companies are just the reverse, as they are able to keep their stocks down by means of liberal concessionT to buyers.
 The following statement comes from a person high up in Amalgamated Cop per affairs:
 Tt is true that an effort is being made to bring about cooperation in the copper industry with the object of maintaining the price of copper at what we term a reasonable level. Whether or not a community of interests policy will be adopted I am unable to say at this time, as negotiations have not pro- gressed far enough
 .'The independents are inclined to cut the price of copper. knowing that we are determined not to sell our product below 1Tc- In fact. they are killing the goose that laid the golden egg. Had it nos been for the Amalgamated Cop per Co. prices would have been much lower than they are at the present time. But the independents cannot expect that the profit they are deriving through the efforts of the combine to keep prices up to reasonable level will be permanent. They are simply doing something that will probably result in further demoralization.
 If the Amalgamated Copper Co., finds that it cannot dispose or sufficient copper to warrant it in maintaining the product at 17c it will surely reduce the price.
 There is nothing to Justify a reduc- ton at present, but conditions may un- dergo radical changes within the next few weeks. We can make just as much money by selling small quantity Of copper al 17c as we could by selling to win the independent companies over to our way of thinking and our chancas of success are good.
 Had it not been for the business de- procession abroad, which has resulted ia heav.. falling off in exports, there would not have been enough copper to go round. However, the outlook abroa l is very encouraging, and it will not be long before foreign buyers begin to ra- plenish their supplies, which now amount to practically nothing."
 In connection with the statement that certain independent companies are underselling the Amalgamated Copper Co. it is interesting to note that a rep resentative of Phelps, Dodge & Co. w;,s recently quoted as saying the copper outlook was very encouraging and that q cut in the price of the product was not likely.