Arizona republican., 1907-10-28

His Proof Of Arisena's Prs-snissnee
in the Copper World.

1872
In 1905 and again in 1906 the copper
output of Arizona, as reported by the
United States government, and also
by the Engineering and Mining Jour-
nal. exceeded that of Michigan, but fell
short of Montana's output.
The record stands thus:
Montana, 1905. 319.OOO.000 pounds;
1906, 100000. 900 pounds.
Michigan, 1906. 219.000.000 pounds;
1906. 224.000,000 pounds.
Arizona, 1905. 223,0O0,000 pounds;
1906. 263,O00,OOO pounds.
To avert the danger of mistakes in
printing figures I have made the state
ment i'm round millions. ignoring frac-
tions of the million less than half. and
stating more than half as a round
million.
Arizona's output In 1905 exceeded
that of Michigan by 100000 pounds;
in 1906 by 100000. Yet Michigan's
output for 1905 and 1906 were the two
greatest in her long record.
In 1905 the output of Montana ex-
ceeded that of Arizona by 96.O00.000;
in 1906 by only 100000 pounds.
The fact made clear by the above
figures is that Arizona Is rapidly forg-
ing to the front as the worlds great
est producer of copper. She has al
ready left Michigan behind in the race
and is gaining on Montana at rate
that must. within the next two years.
leave Montana in her rear-provided
she can maintain her present pace.
Stripped of all confusing verbiage
the secret OF AriZona's assured SUI
premacy In copper can be fully and
correctly stated in four words-"low-
est cost of producing"
Arizona produces her copper at a
lower cost than any other region in the
world
To avert any misunderstanding. let
us re-state that assertion in this way:
Arizona produces the sum total of her
output at lower cost than any other
|quantity-or than any other region at
present known will ever be able to
produce an equal quantity.
This will prove a surprising state
|ment to many pretty well posted cop
per experts, therefore. IL should not be
left to rest on mere assertion. and I
will state the reasons from the officia.
record further On
But the first thing to determine IL.
what Is the cost of producing copper?
The question looks very. simple to
simple minds. but It is actually very
involved and there is no way Of de-
terminating precisely the total cost OF
the total output for the whole country.
But as to individual mines IL can be
determined pretty closely II there is
any candid desire to so determine II,
which commonly there isn't. but often
a very uncandid desire to report IT in
correctly for private motives.
II is manifestly utterly misleading to
determine the cost for any brief per-
iod of time as is frequently attempted,
ignoring many items Of cost that can
not be reduced to certainty for a short
period. Not even the most candid an
nual report can commonly disclose the
cost more than approximately. In any
brief period. when a mine is in bo-
nanza ore and the treatment plants are
running I'm best OF order. II may be
possible to show a cost which is less
than half the general average for
longer period.
OF course the only candid statement
is the general average.
Many companies with good business
management try to state the average
fairly and honestly in their annual re-
ports. and they come close enough to
1t for all practical purposes.
Among the difficulties OF arriving at
the actual cost in any particular mine
is the presence Of gold or silver or both
in the copper.
Some deduct the whole value of the
precious metals from the cost and thus
show a very low cost for the copper.
But such a statement of the case Is
manifestly childish and absurd-as IL
the gold and silver could be produced
for nothing.
Yet II is not schoolboy's problem
for to distribute the cost fairly to the
three metals where they occur togeth-
er-would make the bookkeeping COM
pick without any great practical ad-
vantage.
The point | am to enforce is that
when YOU see the cost of producing
stated at an abnormally low figure
you may be certain that some import
ant factor of cost has been omitted
from the calculations and the most
usual error is the childish assumption
that 1t has cost nothing to produce the
gold and silver. Yet ignoring the pre-
cious metals altogether there is great
diversity in the cost Of producing cop
per in different districts and in diff
ferent mines in the same district, OF
in the same mine at different periods.
WHAT IS THE COST?
The cost of producing copper in the
United States IS the price at which
the refined copper can be laid down
ard sold in the city Of New York
(the American copper market) without
any gain or loss to the producer.
That is the trade test. the final test,
the only complete test.
That rule covers every possible item
of expense and any other statement is
partial and misleading.
That is the rule applied in my as
sertion that nowhere else in the world
is an equal quantity Of copper produced
at as low a cost as in Arizona.
Almost all copper deposits carry
some values in gold or silver or both.
In few this Is important and repre-