The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1909-11-20
Paine, Weber & Co.'s Weekly Copper Letter
Facts of Interest Concerning Properties of
Merit, Prospects for Future and Metal
Market Conditions

The predicted strength in the cop
per shares during the past week is but
further evidence of our assurances
that the metal situation is improving
steadily and that there are events
coming to pass in the copper produc-
ton business that will be of greatest
Importance to the history of the red
metal. We have insisted for months,
i'm the face of stubborn conditions, that
these copper shares were good business
purchases. Now that the advance has
started we wish to reiterate our fur
Their faith in still high prices for the
good copper shares. 1t will take this
market some months to reach n point
where it will be unsafe and where con-
servatism will call for profit taking
There will be set-backs and temper
airy reactions but these copper shares
are assuredly scheduled for n very
strong advance even from present fig
ures and the advance will be based on
actual bettered business conditions
with regard to the metal, as well as
the contamination of plans now under
way which will put the copper business
on permanent basis of security and
certain remunerative return to the pro-
ducers of the metal. But the trend
is upward.
With regard to the big one billion
copper combine, reports of which are
beginning to get into the daily news
papers now, you will remember that
the published information seems to
bear out our previous conjectures on
the subject. We have no doubt that
this copper combination is going to be
worked out satisfactorily this time.
In years gone by we have heard num-
erous stories of combines of this ma
ture. Copper trusts have been talked
Of whenever we have noticed a pro-
tracted boom i'm copper shares. but in
each and every case there was little
basis for the talk. Three years ago
plans for copper combination reach
cd such a point that there was an ex-
pcctation of the success of the deal.
but too many OF the largest produce
ors failed to agree to the terms pro-
posed and the deal fell through. This
time, however. we have faith that the
men behind the proposition can put IT
through and they have an equipment
Of brains, energy and cash enough to
make it a success from the start. |
Likewise we have heard enough OF
the plans to know that some Of the
errors which were made in the forma-
ton of the United States steel corpora
ton will not be made i'm the formation
Of the United States copper corpora
tl2n. If that should be the name of the |
new organization. The public has n
distinct recollection of the formation
OF the steel trust, the prices paid
Tor the mines. the flotation of the |
stock OF the new corporation and the |
smash in securities which came so |
soon afterward. with the subsequent |
Improvement in general business con-
ultions, based on renewed prosperity. |
The steel corporation has been through |
several panics since that time and is |
To-Day in stronger and better condition
IN every way than any other organized |
business i'm the world With the new |
copper combination the pitfalls which |
came through lack of precedent can be
avoided as many Of the same able fin
anciers who handled the steel corpor
atlon are interested in the new cop
per combination.
IL will be some time before the new
corporation has things I'm such shape |
mat public announcement can be
made. There is always the possibility
OF failure at the last moment of the
pans to carry. although in this in
stance there Is really little danger of
any slipup in the arrangements AS
10 the details, there will be much
suesslng from time to time. II is
Iairly safe to say that the scope OF the
new corporation will be world wide.
Ine financing will be i'm the hands of
o. T. Morgan and company in this
country and the Rotbschilds in Eur
"pe III VIII include practically all of
'"e largest producers OF copper ex-
o'pt'ng the Calumet and Hecla inter-
SS IN Michigan. While terms have
"o' peen made with the smaller pro-
,, OF copper and in many instances
'"y nave not been consulted. Il is
UNDERSTOOD that those already in will
.onsutute about IS per cent. of the
Known world copper ore bodies. lTherel