Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-07-26

N,f4i,652 FOR mining and smelling con-
struCtiOn up 10 the end OF 1905, or y
cents per pound. Imperial. which pro-
duced 10.5OO. 900 I'm 1893. had 81, 4sS, 992 in
mining and smelling plant, or about
lA2 cents per pound. besides which
100000 had been put Into Its railway.
The Moctezuma Copper company re-
ports 81 COZ 22g in plant ana general
construction, which II 1875 cents per
pound on its MAXIMUM output Of IL
10000 pounds The Boston Consoli-
dated up 70 Sept. 30, 1905, had expended
s8,0Isi99 on plant and equipment, or
about 10 cents per pound. The Utah
COPPER company up to the end Of 1908
had spent 1914, 600, or about 10 cents
per pound OF maximum ANIMAL produc-
ton. When the Miami begins produce
Ing early In 1910 II VIII have spent
about 50. 500. OO0. for "A OPACITY of 2s,
Gov, 600 pounds or i2i4 cents per pound.
Note that the Moctezuma. Boston.
Utah and Miami costs do not include
smelling works, The Arizona copper
company IN It's last report rated its
plant AZ 81. f42 ,293. or los cents on It's
production Of 3i.S62,0 900 pounds. Tho
shannon plant on the other hand came
to only 7.S cents per pound. The smelt-
Ing works of the Utah Consolidated
alone cost about 81 cents per pound
Of capacity. The low operating costs
of Nevada Consolidated and Cerro de
Pasco are in large measure due to
their huge capital OUTLAWS. including
large expenditure for railways. Con-
versely some of the producers who have
high operating costs doubtless have
smaller OUTLAWS In plant.
Giving consideration To this condition,
II is reasonable to estimate that all the
copper produced I'm North America Is
subject to interest at per cent, and
at 10 per cent on "A capital
investment of IL cents per pound OF
and that the high cost cop
per is chargeable with the same rate
on at least 10 cents. In other words,
IL we are producing 5000. 900 pounds
per month that costs 12la cents per
pound for direct operation, the real
cost Is in the neighborhood Of IA cents,
without allowing anything for the de-
velopment OF the mines in the first
place. l. e., Ii the mines had been given
to the exploiters for nothing, the cost
" their copper would be IA cents per
pound.
a REASON WHY.
why is IL. then. that producers con-
iinue to sell their copper at a loss? The
reasons are various. In the first place,
suspension. or even curtailment, is cost
~, and production will be continued in
hope OF recovery in the market. Ignor-
lncc of actual cost is a factor, and
where there be no ignorance, indiffer-
ance may play a part. Some man
ayers may deliberately squander their
resources. pay dividends out OF prin
cipal when this is not directly APP
parent. relying upon refinancing by
new group of investors after previous
has been obscured or forgotten.
The managers OF some OF the porphyry
mines, possessing enormous reserves Of
orc. may be willing to gut their prop
critics for the sake Of Immediate pront,
what may be their status
10 or 20 years hence, although in their
promotion a production for 20 years at
an expected average price of the metal
may have been the basis for determin-
ng value. Such a policy is, OF course,
merely a form Of robbery.
II has been remarked that low
price for copper has never curtailed
production and il is a fact that the
statistics of the worlds production
.how an unbroken record of annual in
,rease since 1886. We must await
general revival i'm business before We
IAN look for a material and lasting
advance in the price for copper mean
ng an advance 20 anything like 15A
,ents. which IL the cumulative aver
age for the last II years, but whether
.wo years or more. IL will sooner or
two years or more. II will sooner OF
ater come TO pass just as surely as
The sun rises and sets.