Bisbee daily review., 1907-09-29

the speculative centers. 4 number of very large investors who sold their coppers six months to one and a half years ago, expressing at the time a determination to wait for a depres- sion, been seen and questioned as to their views at the present time. Some of them admit that hey already have reinyested their money in coppers. and they now express confidence that the clouds which enshroud the copper situation will soon disappear. One leading copper man, however. ex- presses the opinion that all of the better class stocks will decline from 25 per cent to 40 per cent below their present prices. This opinisa ia shared by the bear traders who are still short of copper stocks. encour- aged by the belief that the metal market will decline to I2 cents or 13 cents per pound.
 As yet the strain on the producing companies is not very severe. So far as am s6.e to learn all of the pro ducers are carrying their surplus cop per with their own money. Most of them canl carry from four months to one years output without borrowing. To do this, however, they would have to either reduce dividends or discon- tinue them. Half dozen companies have reduced their dividends, includ- ing Quincy, Calumet & Hecla, Vol verine and Utah Consolidated. It is quite probable that other reductions will follow.
 This is the extreme view of the case, however. It must be remem- bered that some copper is being sold and delivered, and that the amount going out from producers must in- crease as the stocks of metal sn the hands of consumers become exhaust ed. There is no probability that the accumulation of copper will increase very much beyond it's present dimen- sions. A great deal of voluntary cur tailment of production is under way. and little later there likely will be forced curtailment in many districts. The shortage Of fuel is already being felt in Utah, and the prospect is that 1t may become so acute this winter that even the train service on the railroads will be severely interrupted. It is not possible that even passenger trains may cease to run n some parts of the west.
 The money situation is beginning
 
 the metal and stock markets. There have been times before when the out look was just as depressing as it is nv, and yet the trade revived and the prices of copper shares subse- qWently reached astonishingiy ifgh levels. The people who made the most money were those who bought freely when the depression was se- verest.
 No one knows just when the mar ket is at the bottom, and investors who wish to make big profits must be satisfied If their purchases are made within few doliers per share of the lowest quotations reached The recovery from this depression may be delayed for months or years, and t may be only matter of weeks, but when it does come it is likely to be as rapid as was the decline
 The best of the coppers are selling exceedingly low. and such stocks as Amalgamated, Anaconda, Butte Co., =alitinn Calumet & Arizona. Copper Range. North Butte, Utah Consoli- dated, Greene. Utah Copper. Boston Consolidated, Nevada Consolidated and Cumberland Ely are perhaps selling lower now than they will again sn many years. There is possibility, of course. that they may sell little lower before this depression is over, and, on the other hand, their recov- cry in price may begin any day. These stocks are certainly worth a great deal more than their present selling prices. I believe that the pro ductive capacities of these companies will be strained severely to supply the demands made upon them for copper during the coming 10 years, and that within this period each one of them will return in dividends more. money than sts capital stock Is now selling for in the market.