Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-05-31
UNSOLD COPPER
NOW DECREASES
SURPLUS OF REFINED METAL
ABOUT WIPED OUT
ASSOCIATION FIGURES APPEAR
FAVORABLE
Largest Copper Seller in the World
Stands in Danger of Losing An
nual Marketing of One Mill
lion Pounds

BOSTON, May SO.-Although stocks
of marketable copper stood at $4,000,
900 pounds on the first of the month
according to producers association fig
ures, it is considered very doubtful in
the trade if there remains much OF
this accumulation unsold. Were ship
ments of all contracted copper called
for in the current month almost the en-
tire surplus of refined metal would be
wiped out.
Much of the copper which will figure
in deliveries this month was actually
sold in the first quarter of the year.
Deliveries and exports in the next
statement will also contain approx
mately 10000,000 pounds of lake which
had been contracted for and was de-
layed in shipment until May simply
because the great lakes were not then
open to navigation.
Since May 1 total sales of all the
selling agencies and independent pro-
ducers have Appropriated 100000, 600
pounds. an amount considerably in eX-
cess of current months output. The
deliveries called for in these transact
lions extend up to August l. Beyond
July 81 none of the selling interests
has cared to book commitments based
on present prices.
Producers are confident that before
July l electrolytic copper will have
reached IA cents.
The advance in electrolytic prices
from 12A cents to better than 1915
cents caused a rush of orders for fin
ished goods, and as a result the man
ufacturers have been free buyers of
raw material
The United Metals Selling company
the largest individual seller of copper
in the world, stands in imminent dan
ger of losing very shortly the market
ing of upward of 100. 000 900 pounds Of
the metal annually Figuring on an
average of Is cents for copper for the
entire year, this would result in a loss
of commissions exceeding S135, 900
The copper, the selling of which is
expected to revert to other hands. is
the produ> ton of the Utah Copper
company, and that of the Bigelow
mines, now controlled by Calumet and
Hecla.
Utah is now producing at the rate
of 60, 900 pounds of copper annu-
ALL, while the output of Osceola, Tam
arack, Ahmeek and Isle Royale APP
proximates 5000 900 pounds, total of
100000 pounds
Allowing a selling price of 10 cents
on which the Metals Selling company
charges commission of l per cent for
marketing, the loss to the selling
agency would figure as follows:
Utah Copper company output go, 000,-
900 pounds, commission SIS, 900: Osceo-
la, etc, output 45,0OO0O0 pounds, COM
mission $5S,500. Totals, 1O5, 600, 900
pounds, commission $136.500
As the Utah product will probably
revert to the American Smelling and
Refining company for selling it. it will
increase the Guggenheims' yearly prod
uct for marketing to nearly 200, 600 900
pounds, while Calumet and Heclas to-
tai win reach well toward 0,000 900
pounds.
At Nine Cents a Pound
1t is now admitted by one entitled
to speak officially that hereafter the
cost of producing North Butte cop
per must be reckoned at cents a
pound. This means that the ore on
the 1000 level is very much lower in
grade than on the levels above. 1t
does not mean that the mine is "all
in" for, as one director recently
stated, IF no one had seen our phe-
nomenal ore deposit on the 1S00-foot
level of the Edith May vein the ore on
the 1000 would occasion no disappoint-
ment."
1t is now generally understood that
those who had access to prior infor-
nation were heavy sellers of North
Butte in the 70s and that some of this
stock has been taken back. A broker
who has always been active in North
Butte says: North Butte is selling ex-
phenom; 1T is now a very speculative
issue. Our office is not carrying as
much of this stock as formerly, but
L have made careful inquiry among
other brokers and several banks, and
it is apparent to me that there is as
much of the stock in the street as ever.
There has been a great shifting of
ownership, and it is needless to say
the insiders do not hold as much of
this stock as they did six or eight
months ago."
1t will take an output of 40 600. 900
pounds per annum, and this is a trc-
mendous task to put upon one shaft
and 13-cent copper market to show
earnings equal to 81 per share on North
Butte's 100000 share capital. The di-
rectors have just declared a 81 quarter
ly dividend. but how long they can
sail so close to the wind is a question.
One of the leading copper factors in
this country gives it as his opinion
that the smelling of copper in the
United States and Europe is today fully
equal to the production, notwithstand-
ing the output is at the highest point
in the history of the copper industry
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