The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-01-22
PRICE OF COPPER
To Be REGULATED
Repetition of Former Mistakes
VIII Be Guarded Against
in Future.
OPINIONS OF WALKER
AS TO OUTLOOK
Production Of Bingham VIII Be
Greatly Increased in the
Present Year.

George L. Walker. In his weekly coppe
letter. reviews the red metal situation II
an entertaining and interesting vein. IL
part. as follows:
-Four years ago this month copper sol'
as low as 1OlS cents per pound The effor
to maintain tho price OF the metal aroUnC
II cents. aruhclally, had resulted in dis
aster, For a long time the prico OF Tho
metal Ind been pegged at 1855 cents, anc
oil offerings had been taken by the pool
which was made up OF Amalgamated inter
csts. Tho peg broke I'm December 1901, anC
the following month the low quotations
mentioned were reached. Ii is estimated
that the surplus supplies OF copper thcr
in existence amounted 10 0.COO, ,OUD pounds
OF this, something over 500.o00,0C0 is said
TO have been held by Amllg1matcd inter
csts and the remainder by various inde-
pendent and mi-indcpendent producers.
As the worlds production of copper al
that time amounted TO about 10000, ,0oC
pounds the surplus was approximately
five months output.
Copper's Steady Advance.
This was about the worst market stu
alton imaginable. The T-cent copper
market had encouraged the organization
OF very large number of new copper
of tens of millions OF dollars In develop
mcnts. new equipment, mills. smelters,
etc. Ii could readily be seen AT the time
that very large Increase In production
was at hand; and the outlook was so
cherries that some presumed authorities
on copper predicted a further decline to
= or cents per pound. During tho four
years which have elapsed since tho price
OF copper was driven down TO l0la cents
by o surplus OF 600 pounds. such i'm
portant new producers nS Green ConSoli-
dated, Copper Range, Calumet and Ari-
zona, North Butte, CRANKY. Tennessee.
Shannon and Mohawk have come TO tho
front and the output of the Amalga
matc0 group OF mines Copper Queen, Os-
ceola, and tho several Bingham mines,
has been tremendously increased. In brief.
the worlds annual production OF copper
has Increased more than 800. O.011, ,0QJ pounds
within the past four years, but the con-
sumption of copper has grown so much
more rapidly that II has utilized all OF
the output OF old and now mines, nb-
sorbed the 500 600 90 pound surplus and
still called for more. Indeed. Its calls for
more have been SO urgent that the price
ci the metal has meanwhile advanced
from l015 cents TO 10 cents per pound.
Bingham Will Increase Output.
1T Will thus be seen that the conditions
the producing interests have actually ex-
perienced during the past four years were
very much more opposed TO a high level
to develop In the future. Apparently
production has increased an average of
100000 pounds annually. and, in addi-
lion TO this Increase the market has been
obliged TO absorb nm average OF 125 600 600
pounds annually In order to use up the
surplus stocks. In spite OF this condition.
he market is now bare of supplies and
III production being taken at 1874 to le
,cnts, or nearly twice the average cost
II production. The coming few years will
see considerable increase in the output
IF the Blsbec. Arizona and Bingham,
tab. districts; but the growth of pro-
luctlon In those camps VIII be no more
apid than II has been during the past
our years. Butto's output Will probably
Increase relatively more, and Lake Su-
'erior less rapidly Taken as n whole,
Iut Will Increase an average OF 100000 600
pounds annually during the coming four
ears. II II does. II Will only be neces-
AIRY for the consumption OF copper to
our years to absorb the increase and
'cep metal prices up TO the present high
eVcl.
Mistake Not to Be Repeated.
There Is now every reason for the be-
lei that the mistake OF attempting to
the price Of copper at a hlEh
cvel. such as was made nYe years ago
nd also on one previous notable occasion,
vii never be repeated. Money Is now be-
ng accumulated to the extent Of many
Millions of dollars, In the treasures OF
eNeral large producing companies which
ytll be used TO hold copper and support
ne metal market If the price ever again
cclineS as low as l3 cents per pound
he big mining companies Will become
ne spectators in copper at low prices
,hcy VIII not ship their product to New
iork and store IL where rent is high but
rill pile II up in their smelter yards
'hcre rent costs nothing, and Will refuse
o sell 1t in competition with one another
lT.Fass ~ -
onsumptiye demand restricted Small
PRODUCERS who refuse TO join in such n
movement to support prices Will sell 10
heir own loss They Will not profit Mt
ne expense or the larger companies as
hey did when the market was pegecd
L lJfs cents. The result of this procedure |
'ill be steadier metal market i'm the fu
ure lit Is not believed that copper will
ell below II cents again for several years,
nd the prospect favors as high AN aver
se as Is cents per pound for n great |
lany years 10 come.
Consumption Will Increase.
There seems to be every reason for !
nc belief that the consumption OF con- |
er Will Increase moro rapidly in the fu-
ure than II has in the past FIecfrIccI
rogress has received A great impetus
nd the substitution OF electric power for |
team. on railroads and elsewhere. ia well |
nder way The use OF electric traction |
4 mines. factories etc; electric IIobtin. |
nd Its adaptation In a thousand othor
iays VIII grow much more rapidly in |
ne future than In the past. Copper will |
ontinue 20 be the metal OF cIectricItv |
nd electricity Will be the worlds power
Outlook Very Satisfactory.
Continued strength OF the metal nav
ct VIII eventually cause capital to tolo |
ne risk OF developing and couipninp |
'"sr grade ore deposits than have been |
made TO pay In the past Ii Is not i'm |
ossible that eventually big mine that
an make copper at a cost OF 10 To II |
ehts per pound may be considered a s;,t |
I copper must average high CROUCH Ia |
nconrosc n very large increase I'm tbo |
olume or production. otherwise the oIe, |
rlcal equipment OF the great steam rail |
DAD systems OF the world Will be inn |
ossiole. Such an outlook cannot be cor |
ldered other than highly satisfactory 10 |
nc stockholders OF those mining com |
anles that are already making their con
ef al cost Of 10 10 cents per pound"