Bisbee daily review., 1907-12-15
GRAF SEEMS
OPTIMISTIC
ON COPPERS
Prominent Broker Reviews the
Situation, Pointing Out Ex-
.~HNsL nA~Nss1. s~s&:Ne CNs
OOsTOItS SPpUt tUiuCoO VI
Making of Investments:
QBy Frank ]. Graf

December 3, 1907
Not since the elimination of the
big copper boom of 1898 and 1899
when the Bonanza Circle, or Cole
crowd, came into Cochise county and
operated the Lake Superior and West
ern Development company lnow Calu-
met & Arizona) in the Warren dis
trict. aas there been such an opportu-
nifty to buy copper stocks as thelo is
at the present time. l will admit that
there might have been a better op
portunity to make bigger money. and
at the same time taking heavier
chances OF losing the same At the
present time we have a list of War
rem district copper stocks that have
long passed the speculative age and
have, gone into the class of stocks
that are listed, bought and sold in
almost every market where stocks
are handled of that list l would
venture to say that there is not one
of them, that il bought today would
not bring handsome returns in a rea-
sonable length of time. In the list
there are perhaps one or two stocks
that you cannot go to any banking
institution. where these stocks svcurl-
ties are handled that will not take
them as collateral
AS to the cost Of production there
is not a section or district in the
whole copper world where copper can
be mined and produced as cheaply as
it can be done in the Warren district.
This alone should be the greatest
inducement to conservative buyers
Of copper stocks. and is the most inn
portant factor of copper properties.
~ q
pany is without doubt the leader of
the low cost copper producers, and
in my mind, there is not better pur-
chase Tor the conservative investor
who is looking for a fair return for
bilities of making profit on his in
vestment.
At the low price of copper (13
cents) the company is earning S11
per share per year and paying divi-
dends at the rate of $500 per snare,
and at the same timep lacing $50 per
share into the surplus. TIere is no
reasonable doubt in my mind, that
copper viii not sell for less than 16
to Is cents within the next six or
eight months. If this should be the
case Calumet G. Arizona should be
S6tuuS S4zO.GU anu pay
ing at least 1890 per share on IS
cents copper and $4,000 per year on
Is cent copper and still place $500
per share in the surplus fund, figur-
ing that it cost seven cents per pound
to make copper.
Superior g. Pittsburg should go into
the dividend class, as soon as the
copper situation is settled The Su-
4. har Ill gr.
her second furnace, and at the pres
ent time the Calumet C Arizona
smelter have two furnaces that are
handling Superior & Pittsburg ore ex-
clusiyely, and I do not think that
would be wrong in stating that in
1908 she should produce in the neigh
borhood of 25,0Oo.00O pounds of cop
per.
With the stock selling at present
prices and the high at 20 a profit
OF ZU.OU per snare, but say TnaL Ine
stock would only advance TO one-haif
of last year high figure, their would
still be handsome profit OF 1000 per
snare or little better than 100 per
cent on the investment
Many are at loss whether &c in
vest their money in Superior & Pitts
burg or Shattuck. Shattuck we must
admit is capitalized much lower than
the S. & p and at the same time has
a great deal smaller acreage. When
Sbattuck was selling at II many ex-
pected to see the stock sell as low
as 5; this it will never do. Those
that were in position to buy Stat
tuck at 1900 have already a very
handsome profit When the Shattuck
and Arizona erect their reduction
works at Douglas, there is no reason
in the world why they should not pro
duce their copper for eight cents and
earn about 5000 per share which
will enable them to pay at least $500
per year and and bring over very
nice surplus. The character of the
ore is the same as that Of the Cal