The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-10-03
MARKET E0R LEAD
Trust Kept Up Price Until
Stocks Accumulated
NEW PRICE REMuNERAT|vE
Costs Of Mining in Occur d'Alenes Have
Not Materially ACKNOWLEDGMENT
snts Decline to Limit Product ton

The reduction of O.5c. per pound /
the price of lead Saturday, followin
reduction of the same amour
about ten weeks ago, evidences tn
wisdom Of the American Smelling 4
Refining company in not attempting
to override the law OF supply an,
demand, although It's latest actio,
was rather tardy. Even at 4.75c
New York, the price for the metal il
high enough to yield fair profit t,
the producers, Notwithstanding tina
the cost Of production has riser
largely during the last six or sever
years, perhaps more than in the cast
OF any other Of the principal metals
at least in one important district. 81,
or seven years ago pig lead could be
produced in southeastern Missouri on
the basis Of 2.25c per pound, deliv.
cred at st. Louis. Since then the cos,
has increased immensely through
large advances in the wages for la
Dor and decrease in the efficiency of
the men, but these and the other
factors have hardly doubled the price.
In the Occur d'Alene the increase
in the cost of production has been by
no means SO serious. OF course it is
we'll known that these two districts
furnish upward Of so per cent Of the
total domestic production and are
the dominating agents in the mar
ket.
Where Demand Fell on.
While there are no statistics Of
production available for the current
year. 1t is to be supposed that the
Occur d'Alene, Southwestern Mis-
souri, and the other districts have
been making their normal increase,
there having been no set-backs In
any Of them, while on the other hand
1t is quite certain that consumption
has not kept pace with production,
as there have been considerable &C.
cumulations of unsold lead in almost
all quarters. We understand that the
market for white lead has suffered
no diminution in activity, wherefore
the falling of must have been in the
demand for sheet lead, pipe, etc.,
which are used largely in the build
ing and electrical trades. The reduc-
ton In price at the end of June failed
to stimulate demand to any consid-
cradle extent, and since then outside
refiners have been freely offering the
metal at cut prices, without bringing
about any large business.
Wise Policy Of Trust.
The larger part of the lead produc-
ed in the United States is still sold
by contract at the settling price
established by the American Smelt-
ing & Refining company. but within
the last two months several contracts
expired and were not renewed, and
outside dealers, who conformed to
the trust schedule when the market
was strong and rising, have pursued
different policy since 1t turned the
other way. OF course this has been
instrumental in causing the recent
reduction in price, but 1t is to be e.
marked that since the experience OF
the trust with large accumulation
of lead on its hands in 1901 1t has
uniformly pursued wise policy in
bowling to unfavorable conditions, and
on the other hand has not exacted
the last pound Of flesh when 1t might
have done so.
Trust Has Helped Industry.
In the lead market the American
Smelling & Refining company has,
during the last two or three years.
acquired an important interest as 4
producer, through its subsidiary COM
panies-the Federal Lead company,
the Federal Mining G. Smelling CON-
pany, the Western Mining company,
etc.-but its larger interest is simply
as a, middleman, buying from the pro-
ducers rrd selling to the manufact-
urers. We think there is no question |
that the American Smelling & Re-
fining company has kept the price of
lead during the last six or seven
years above what otherwise 1t would
probably have been, which has been
to the advantage of the producers and
through them to the miners who
work for wages. On the other hand
the manufacturers do not care very
much; they would as lief see the
price high as low; indeed. in some
lines they prefer the high. The per-
sons who are affected adversely are
the ultimate consumers, the intang-
ible fellows who can make their views
evident only by ceasing to buy. 1t
remains now to be seen whether the
new price for lead will interest them.
Effort to Limit Production.
There have been rumOrs OF plan
to induce the outside producers OF
the Occur d'Alene to agree to lin
aN - ILL