Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1908-03-28
UTAH AND NEVADA ARE
IN Line FOR Big
OUTPUT

the future, the Mining World of Chicago
says:
'At last the clouds of doubt in the
copper market are beginning to disa1-
pear, and as the sky clears there is
gradual return of confidence The slim
ulant which is strengthening the market
is the resumption of buying by domestic
consumers, who it seems anticipate that
prices will not go lower if anything will
advance. incidentally the reopening of
some of the more important mines in
Butte and elsewhere sugge.ts tat sup
plies OF copper in first hands are nearing
the level where, should the normal d
mand reappear before new stock has
been produced i'll quantity, prices might
again jump beyond reason.
The supposition that mining is being
resumed in certain quarters for the puI-
pose of rehabiiitating the copper share
market is perhaps better founded than
the rumor which intimates that the Anal
gamated coterie is coercing the Calun ct
& Hecla management SO that it will be
compelled eventually to sign the gen
tlemen's agreement. While tile two
larger interests are surveying the situs
alton through microscope, the Guggen-
helms and their associates are quietly
obtaining dictative control of many OF
the more promising of the newer copper
mines, which, by the way, are being
equipped so as to produce the metal at
the minimum of cost and lower than at
Butte.
Utah and Nevada are in line for a
mammoth copper production, and
would not be surprising to see these
States eclipse many of their elders few
years hence. 1t will be the low-grade
ore deposits, mined by steam shovel and
the product concentrated and smelted i'll
huge plants that will eventually give to
Utah and Nevada an enviable reputation.
Success in these States will also meal
perhaps, the utilization of similar pracss
tees in mining and ore treatment in dis
tricts where heretofore the future fer
economically developing the vast low
grade copper deposits seemed to be
hopeless.
rhe saving i'll mining. at Is to 80
cents per ton by steam shovel and 81 t.
81. so by ordinary means is factor which
will encourage the development of any
property whose area is large enough to
guarantee profitable working even If the
ore does not carry more than about 2
per cent copper. Such property, intelli-
gently managed, should yield fair in
terest on a normal capitalization, even
when copper sells at only II or IS cents
a POUND.
Recently the policy of issuing bonds
as first lien on the property and redeem
able in stock after certain number OF
years has met with success i'll this coun-
try. OF course, these bonds bear inter
est higher than is paid by banks on de-
posts; consequently the bonds of mining
companies of known merit are eagerly
subscribed for. Stock i'll these concerns
naturally does not receive dividend
until the interest on bonds has been
paid, and where a new copper property
is being opened up it is moi reasonable
to expect dividends within a period Of
less than three years. To be sure, there
may be exceptions TO this rule, but the
dividend, understand, must be earned
by the actual workings of the mine, not
by sale of stock or other means at the
expense of depicting the fund so neces-
sary in Carrying on operations.
within the last month or six weeks
several of the better managed copper
companies have either reduced or dis
continued their dividends temporarily,
not for the reason that there was not
enough money in the treasury, but be-
Cause the metal market has been unset
tied. Now that metal prices have i'm
proved, and the cost of labor and sup
plies at the mines and works generally
are less than they were six months or a
year ago, the prospects of the copper
market have assumed a more cheerful
tone. Producers, however, should not
become too enthusiastic, nor consumers
impetuous, rather should they go easy,
for prudence now will mean prosperity
later.