Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1907-10-05

By We is meant the people who are
interested in the copper industry, either
as mine operators or shareholders, saws
the Mining world.
Among the severest patients are the
stock spectators who on Friday, the
18th, witnessed unusually heavy liqui-
dation which nearly cut the quotations
on copper shares to one-half what they
were some months ago. That share
values will continue to slump is antici-
pated by people who ought to know.
One thing is certain, however, and this
is that notwithstanding the amount of
dope" that is being administered to
the fevered patients, by certain people
with motive, the shares of dividend
paying mines are now quoted at bargain
prices-to investors, not spectators
trading on margin.
Let it be understood that The Mining
World does not make the above state
ment for the purpose of lending support
to the stock market Rather should it
be known that the copper mining in
dustry today is in far better position
than it was few years ago when good
profits were realized with the metal sell
ing at II to Is cents a pound Current
prices are from 3 to cents higher, not
withstanding the fact that there has
been reduction of about 10 cents per
pound in 1907. Even allowing that there
may be a further reduction i'll the price
of copper to Is cents as basis, or less,
there should nevertheless be a sufficient
margin of profit to pay an equitable
dividend to shareholders in the we'll
managed mines.
The consumption of copper, although
it shows marked falling off from 1906,
when extraordinary prosperity prevailed,
is nevertheless far i'll excess of 1902, the
year when the price of the metal slumped
about cents per pound to 10 rs to
II IL cents for Lake copper and 10 SIS
W Il - CCIlS lOl
The worlds production of copper III
1902 was SAP, 293 long tons, of which
294, 423 tons, or 54.3 per cent, was con
tributed by the United States. Com
pared with the previous year the world s
output showed all increase, notwith
standing lower prices for the metal, of
81, Ola tons, or about 6 per cent. The
increase in production in the United
States in 1902 over 1901 was rs, 641 tons,
or 9 IL per cent.
In 1901, by the way, the Amalganated
Copper company, which had increased its
capitalization from $50, 600, 900 to $751;,
000 controlled about one-ffth of the
worlds production of copper. In that
year with copper selling at II IL to II
cents per pound for Lake and IL "a to
16 IL cents for electrolytic, Amalgama-
ted paid dividends equivalent to 5 "a
per cent on par of 500, while the shares
were quoted at $50. so to S128.75. In 1901,
when the metal market was quoted at
10 7-8 to II "a cents for electrolytic,
Amalgamated paid dividends of 2 per
cent on an issued capitalization of Sl53,-
OS7 900, the market value of the 500
shares being S54 to S79. 1t should be
mentioned that this was the period in
which litigation in Montana was active
Il. n of A nj
gamated's earnings from shareholdings
in subsidiary companies. In 1906, when
copper sold at the highest prices in over
quarter of a century; namely, Is SO
TO Is cents per pound for Lake and Is IA
to "a "a cents for electrolytic, Amalga-
mated controlled about IL per cent of
the worlds output, and reported divi-
dends of $40, 716, 155 on its stock which
had market value of S92, 81 IL TO Sis.
Is. Since January, 1907, AInalgamated
has declared dividends aggregating to-
tai of 50, POI ,276. the last quarterly, paid
in August, being at the rate of 8 per
cent per annum on the 500 shares which
have deprecated in value from Sis on
December 81, 1906, to $50 on September
Is, 1907. In nine months Lake copper
has dropped in price from Is rs to Is
IA cents per pound, and electrolytic
from Is IL to IA rs cents.
Having viewed the profit earning pow
ar IF the Amalgamated Copper company,
during the seyerest fluctuations in the
metal market, some attention should
now be gwen to its greatest rival, the
Calumet & Hecla Mining company,
which has recently become heavily inter
ested as shareholder in a number OF
Lake mines.
The Calumet & Hecla company, capt.
talized at only S. 500, 600, paid dividends
of S4, 500, 900 in 1901. equivalent to S4S
per SIS share which stood in the open
market at $3.50 to $3.50. In 1902, divi-
bends were s., 500, 600 or SIS per share