The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-10-10

reduction Of output will be the with
drawal of certain companies from
the purchase of custom ores. This
policy is being generally adopted
wherever it is possible in the absence
of contracts. OF course, the smelling
companies which have been engaged
In this business have been heavy
losers during the recent decline in
the metal, and probably they have
reached the point where they cannot
afford to take any further chances
| Anyway, this Is one Of the easiest
methods OF reducing output. 1t is
to be remarked that unless the re-
finerles slow up 1t will be matter
Of two months or so before the cur
tailment of copper production now
begun will become manifest to any
considerable extent in the supply Of
refined metal. but We anticipate that
there will be an immediate restriction
of the output of some of the refin-
cries.
The producers have been criticized
for their action in making this cur
tailment. but such criticisms do not
display careful consideration. If tho
demand for a commodity is so small
that the producers cannot sell what
they have been turning out. 1t Is
rational to cease turning it out at the
former rate This is quite different
matter from arbitrarily restricting
production in order to starye con-
sumers into paving higher prices than
open market conditions justify.
Looking at the matter broadly,
however, it is generally better in the
long run for such producers as can
market their output at a profit to do
so, rather than to hold 1t back in
definitely for the purpose of obtain
ing a higher price. The most interest
ing question is how long will the pro-
ducers who are now restricting their
output be content with diminished
returns. while others are supplying
the market at their full capacity.
Until the accumulated stock is re-
duced, the curtailment by COM
paratively few companies is merely
4 sacrifice In the interest of those
which do not curtail, and such a
condition is unlikely to be permitted
to last long. We have not heard that
the Rio Tinto, or any of the large
foreign producers, has any intention
of restricting.
On Sept. 10 the American Smelt-
ing and Refining company notified
the independent producers Of the
Occur d'Alene that they must restrict
their output so per cent. But will
they do SO? The independent produc-
ton of lead ore in the Occur dAlenes
is certainly the cheapest production.
II the Bunker Hill & Sullivan COM
pany, for example. should be salts
fed with the profits that It can, make
from regular operations at9 'aa lower
price for lead than rules at present.
1t will probably keep right on. If
there were overtures to make re-
before the price for lead was
reduced to, SAFE. 1t is evident that
they were turned down. and If will
Ing to 80 lower, If necessary. rather
ent producers will probably be will
ing togo lower. II necessary, rather
than suffer the arrangements to their
business by operating at half rate.
This is the second time the Jour-
nal has made the assertion that the
so-called lead trust Is negotiating
with the independents of the Occur
4 Alepes looking to q, reduction In the
output of lead. So far rs the Miner |
knows there is no truth in the az
sertion There are three important
Independents the Bunker Hill, Her.
rules, and Hecla. None Of them show
any signs Of preparing to curtail pro-
auction and SO far as one Of them,
The Hecla, is concerned the Miner
,an say that its management has not
been approached on the subject.
Ed
X ss