The copper era., 1910-08-12
The Copper Situation.
Boston Financial News.)


erences were under way looking t
an agreement to curtail the produc
tion of copper. 1t is conceded that
with the depression in business in thi.
country, the outlook is for substan
tial addition to the surplus unles,
radical measures are put into effect
Immediately. An agreement tc
curtail might be considered illegal
announced, although it is hard to see
why an agreement to curtail the pro-
duction of copper is any more illegal
than an agreement to curtail the out.
! put of the cotton mills. 1t is a uues-
tion, however, If an agreement could
be secured from all producers of cop.
per, and if it was the proba bilities
are that some would break it.
1t will be necessary first to bring
about a combination CT the properties
50 that the control will rest in a COM
paratively few hands in order to
secure unity of action. At present
there are too many arrangements to
be consult. The only obstacle in the
way of a combination is the inability
to agree on prices for the properties
OF some of the leading producers, or
rather the question of price was all
that stood in the way of a purchase
or combination of the Cole-Ryan and
Guggenheim properties. Even if
such a deal had gone through, it
would have left so many independents
that it is quite likely that the control
of the big company would curtail for
the benefit of other producers, and it
is quite probable that we should have
seen the same conditions that have
existed up to the present time.
1t is evident now that the copper
industry has reached a stage where
some of the companies are beginning
to worry about the matter of finances.
The price of copper is not only low,
but the demand is small. and all pro-
ducers cannot sell their entire output
even at 12-cent basis for electroly-
tic. 1t may be we'll to consider the
matter from the standpoint of the in
terests that are trying to bring about
a combination in the copper industry,
that can work harmoniOusly with the
two or three large interests on the
outside. The fact that production
has been pushed to the limit by the
two largest producers, indicates a
settled plan and may be far from in
dicating a fight between the Cole
Ryan and Guggenheim interests as
many suppose. 1t may mean harmony
and united action against the many
smaller producers.
The report in circulation now that
an agreement has been reached to
curtail output 20 per cent for three
months and thereafter 10 per cent
for six months, do not seem to ring
true, for the metal market does not
bear them out. The advance in Lon
don today seems to have been purely
of a speculative nature. 1t seems
improbable that the interests seeking
to establish better permanent condi-
tions in the copper industry, would
give up the advantage they have Sc
cured by forcing production as high
as possible and prices to an unremu-
nerative basis for many mines. At
the same time it is quite likely that
many producers will curtail their out
put, some because they are strong
others because they are weak and
will not be able to make both ends
meet if copper prices go lower. 1t
seems fair to assume anyway that
the turn is near at hand and that
curtailment, the output of copper is
TO be substantially reduced.