The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-04-09
RED METAL MINING
NEVER So PROFITABLE
Present Conditions All Combine
to Favor Large PrOduc-
ton of Copper.

Never In the memory OF the present
generation has copper mining been as
profitable Us IT Is today. Not only have
the increasing consumption and high mar
ket prices initiated unique prosperity. but
the improvements In mining and smelling
have materially reduced the cost Of pro-
duction and made possible the economic
handling or low-grade ores.
In metallursy the kind and construction
of furnace has engaged particular ntten-
ton; In chemistry. the more careful analy-
sis OF the ores The old-fashloned buc-
caneernG spirit, To pick the eyes out
OF mine and treat the ore with view
To quick profits, TO satisfy investors who
In their heart believe mining is a gam
BILE, has been superseded quite generally
by more intellectual management
Mergers Are Healthy Features.
Another factor which seems to foreten
the future of the copper industry is the
Capitalization OF control In the lurger
producing mines and the more promising
prospects, either by consolidation into one
corporation, or by the proverblal gen
tlemcnS agreement" The object Of TINS
universal athlIauon among producing
interests Is primarily. to better and econ
omizo management for the purpose OF en-
larglng profits on the other hand the
reconciliation Of so important litigants az
the two largest operators In Montana
must convert the fat legal fees into dlvi-
company and the Hcinze interests have
In the last few years spent more money
In litigation than was earned In diyi-
dends by many mines.
Companies Change Agencies.
An unusual occurrence is the growing
custom OF copper mining companies To
change their selling agencies for one rea-
son OF another. With few exceptions
however these changes are made TO IA
ciiitate the corporate management Of
mines heretofore competitors. The re-
suit Is that the earnings OF selling COM
panics nuctuute. whereas a few years ago
IL was a comparatively easy matter TO
calculate profits. But these selling ngen-
cies, anticipating further rctrenchment In
this particular field. have taken u re-
taliatory step. as 1t were. and are organ
izing exploration companies. These eX-
ploratlon companies generally consolidate
two or more mines, either In this Coun-
try or Mexico. work them on o-da te
principles. and sell the product thus re-
aliZlng n double pront-thdt of producer
and OF sales agent Naturally good
dividends can be paid ON the exploration
company's stock which, by the way, is
several times larger than the authorized
capital OF the crstwhtle selling agency,
Prices Are Interesting.
Equally interesting Is the fact that with
the increasing production OF copper in
this country-whlch furnishes nearly 60
per cent or the worlds supply-consump
ton continues in excess Tesulting in ad
price OF copper averaged 1913 cents per
pound for lake and l6.62 cents FOR electro
lytic, I. o. b. New York, which was near
ly cents per pound more than 1904. Cal
.culating the production I'm 1895 at 39i.-
1873 100 pounds fine copper. there was re-
ceivcd approximately SgS.02iOli more than
In 1894. No wonder that twenty-five cop
per companies in this country could pay
dividends OF / to 100 per cent or $a3,-
49, 29i, on capital OF SS39. .9O9. go. in 1906
Situation Is Gratifying.
Judging from The larger consumption
and advance of over 3 cents per pound
In the price of copper far In 1906. the
profits this year should show a material
increase. Supposlng the demand should
increase. say. IL per cent and the price
3.25 cents per pound. the copper compa-
MES would realize something like SO 0OO.-
coo more than 1905. This would naturally
mean larger dividends to stockholders
1t is noteworthy that n number of the
lake copper companies have earned a net
profit Of about cents per pound last
year, and expected TO realize more
in 1906. Good profits have also been re-
ported By the electrolytc copper compa-
MES. and on the whole the situation looks
most gratifying.