The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1902-01-13
The Great Copper Bubble,

| the promoters and those ION the inside"
who had been holders in stocks of all
three companies, nobody but those con-
cerned have any means of knowing. Out
side buyers Of the stock when the boom,
was on had little or no information about
the property or business of the various
concerns in the combine"
The Amalgamated Copper Company had
been paying regular dividend of IL
per cent and an extra dividend of one
half Of l per cent quarterly, equivalent
to per cent a year, and was expected
to Keep it up. Where it was to come
from was not clear, but apparently only
from the dividends of the constituent
companies. Even for a 6 per cent diyi-
dend the Amalgamated Company re-
CURED $1,000 Co., Four CT the constituent
companies. the Anaconda. Parrot. Bos
ton and Montana and Butte and Boston
had published dividend rates which Weld
ed an equivalent of $3.50, 900 upon the
entire aggregate of their stock What
the other companies have paid or are
able to pay are among the unknown
quantities. 1t will be remembered that
the extra dividend of the Anaconda. as
we'll as the Amalgamated, was omitted
ct the last quarterly meeting of directors.
and the regular dividend of the Parrot
has been reduced from 6 to 4 per cent.
The price of Lake Superior ingot con-
per ranged in this market from 1Os. to /.
cents a pound in 1897, from II to 12s in
1898 and in 1899. the year In which the
Amalgamated Company was organized.
from 1873 to 1914. For the last two years
the price has been maintained at 1913 to
II cents. In 1899 and 1900 there was un
paralleled activity in the production and
marketing Of copper due largely to the
great development in electrical construc-
ton here and abroad. This was not the
condition when the stock of the Amalra
mated Company was more than doubled
to effect its second consolidating opera
ton last summer The reaction in Ger
many and to a less degree in Great
Britain had led to heavy loss In expor-
tation. which continued through the sum-
mer and until the present time The
price of copper went down to u cents in
London, while it was held at Ii here.
There was and is a heavy accumulation
of unsold stock in this country, supposed
to be held by the Amalgamated COMPANY
or its selling agent, the United Metals
Selling Company. This has been esti-
mated all the way from 125 900, 900 to 2O0.-
100000 pounds, and there have been re-
ports Of plans for curtailing production
without reducing the price. which are to
include the Rio Tinto mines in. Spain.
controlled by the Rothschilds. as well as
the Lake Superior mines which are not
in the Amalgamated combine"
Another thing that has helped to de-
moralize copper stocks is the complicated
litigation in which buyers of Amalga-
mated stock invested. among other Sc
curities. The chief plaintiff in these pro-
ceedings is what are known as the
''Heinze interests" controlling the Mon
tant Ore Purchasing Company. They
have got possession Of one mine claimed
by the Amalgamated, shut down two be-
longing to the Boston and Montana Com
pany by injunction and forced that COM
pany to paw its dividend to the Amalga-
mated only under a bond for restitution
If a pending suit goes against it