Bisbee daily review., 1910-08-14

creasing consumption in Great Brit ian. France, Germany and the Meth erlands. Though exports from this country have been increasing, the April figures having been 13,062 tons, May 20,S32 tons. June 23.430 tons and July, and a total of 10,34s, 800 pounds in the month. On March 1 the for eign visible supply has steadily de- elined. It decreased 6092S00 pounds in the last half of July and a total of 10,348,S00 pounds in the month. On March 1 the foreign wis ible supply was 10S,2S0 tons, and the Aug. 1 figures show only S9,S70 tons, a decrease of 1S,360 tons, or f1,- 1864 pounds, in five months. The report of the Copper Producers as- sociation for July. which will ap- pear next week, is expected to show a further increase in the American surplus; but during the remainder of the year decreases should be shown every month.
 
 regular curtailment agreement has been entered into, but that the large producers have generally expressed to one another a determination to curtail production sufficiently to put the price of copper up around IA cents and maintain it there. This is not simply a gentleman's agree ment. It is rather the adoption of a policy of self preservation, and l believe it will be adhered to firmly. In my opinion the consumption de- mand will increase sufficiently in six months or a year to maintain the price of copper at around 14 cents, even with no curtailment by produc- CTS anywhere.
 Calumet & Arizona stock has shown accumulative buying recently This may be explained in part by the pub lication of an engineers report, se- cured by a New York interest in the company. which showed the com pany's mines to be in excellent con- dition, with a very large tonnage of good grade ore blocked out and also that a considerable portion of its property has not as yet been pros pected.
 Rumor of a pending consolidation of Calumet & Arizona and Superior & Pittsburg continue persistent. A basis of four shares of the latter for one of the former is being talked by Superior & Pittsburg interests; but in all probability the combina- tion, if effected at all. will be brought about by Calumet & Arizona issuing a basis of one for five, correspond. 1 ing approximately with the present i market prices of the two stocks While Superior & Pittsburg owns a a very large area in the Blsbee dis trict a considerable proportion oi | which is known to be ore-bearing ! Calumet & Arizona has the advant- age of owning a large modern smelt l CT, being a dividend payer and hay. ing a strong treasury, it's net quick assets having aggregated S3,155. .495 at the end of last year, or about 10 times the surplus of Superior & Pitts | burg.
 If these two companies were com bined with a total of 5OO,000 shares, the result would be a company hay ing a producing capacity of 55,O00,0 | 10 60,000,000 pounds of copper an nuaily. at a cost of not over nine cents a pound. This would mean no pounds of copper annually for each share of stock On a 13-cent copper market the company would earn $40 a share, and on 15-cent copper | s6.60. As the whole question of fu- ture ore supply would be practically eliminated for a generation to come, the company's stock should fluct- uate between $50 in times of ex- treme depression and s100 when the copper trade is prosperous.
 At present Calumet & Arizona is producing at the rate of 135 pounds of copper per share annually, and on a 12 1-2 cent metal market is earn ing at the rate of about S5.75 a share annually. Undoubtedly the company has at least 10 years and probably 20 years, of life ahead of 1t at its present rate of production. and the management has not entirely abandoned it's plan to purchase oth. CT properties which will make if a permanent producer and dividend payer
 At the same time 1t would be of great benefit to the stockholders of both companies, and especially to those of Superior & Pittsburg is not strong. Its share capitalization is so large as to be somewhat unwfeld iy. and this makes it unattractive when viewed from a speculative standpoint. It's present production is at the rate of only about IS pounds annually for eack share of it's stock It is now earning at the rate of about 59 cents a share. or $2S5 on five shares. Though sepa. rateiy it's production and earnings will increase much more rapidly than those of Calumet & Arizona, it's earn ings per share would be increased from 59 to SS cents a share immedi ately by the proposed consolidation
 and holders would have the benefit
 by exchanging a non-dividend for a dividend paying security, which receive. because of this and its high CT price. much more favorable recog