The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-04
AFFAIRS OF AMALGAMATED.
Corporation and Its Metal Selling
Agency Get Good Roasting.

In the copper industry the situation has
been complicated by the distinct growth
of distrust of the ability of the managers
of the United Metals Selling company to
handle the position that has been created,
partly by their mistakes or incompetency,
says the New York Press. The Amalga-
mated or the United Metals Selling COM
pany has made blunder No. 2 in the man
agement of the copper producing indus
try
After Henry Rogers had organized the
Amalgamated he tried to hold up copper
metal by main force, and failed lamen-
tably. 1t cost him millions, in all prob
ability. Why he should repeat the blum
der in 1907 is a mystery. But right here
comes IN some disturbing talk that may
be heard among some OF the outside own
ers of Amalgamated stock. 1t is limited
that the Amalgamated sold its product
ahead to it's selling agent at prices much
below the maximum reached on the boom,
leaving a wide margin for sales at higher
reaped by the United Metals Selling com
pany.
AS things have turned out. the Anal
gamated would now be better off than
its selling agent, but there was no valid
reason at the time for 1t to take such
action, If it did so. If it did, however, We
then have, say, 100000 pounds of I'M
sold copper for the United Metals Selling
company to carry, for that is the estimat-
ed amount of unsold stock from the Rog-
ers' mines. The capital of the Selling
company is only 5000 000-not a big sum
to carry copper that 1t cost between Sl3,-
600 600 and S140O0,0O0 to produce. and which
could hardly have been sold to the COM
pany Gf it We're Sold Tor less than ST.
5O0,0 600, even putting the selling price at Is
cents. So long as talk like what has been
written here is heard in some circles in
touch with the copper situation the out
look for both the metal and for Amalga-
mated stock will be cloudy. 1t might
prove fortunate in the long run for legi-
innate holders of Amalgamated shares if
some means could be devised for a fed
eraI government inquisition into its at
fairs.
1t looked last week as If the bottom had
been touched on copper metal until near
the end, when there was a fresh fall at
the Metal Exchange to below 10 cents. The
new demand is lamentably small; about
the only favorable feature is that exports
are picking up. A further reduction in
the output of the Amalgamated mines has
been decided upon; the prospects are that
a complete shutdown will become neces-
sary.
A most unfortunate part of the situa-
ton is that the Rogers outfit is at the
mercy of the Calumet & Hecla. The pol
icy of the latter concern has always been
to sell Its product at the market,high or
low Owing to the peculiar qualities or
lake copper, Calumet & Hecla always has
a good demand. even on minimum trade
activity-if there is a surplus II can De
sold before buyers will satisfy their wants
with electrolytic.
The Amalgamated must therefore car
~ the burden just as II did in 1s0l-OS. wait
ing till production finally overlook con-
sumption through period OF low prices
and small dividends. To think that its
early experience did not enlighten the
Amalgamated managers is distressing.
was Rogers or Broughton, the manager
of the United Metals Selling company. re-
sponsible? In either case We are left