Bisbee daily review., 1910-11-20
MINING, MARKETS AND FDNANGLAL

in preference O copper, even if it were permanently on a i5cent basis
 The reaction in prices. whics, started Wednesday 2 morning, ind!. cated that the overturn in politics and the retirement of ex-fresident Roosevelt had been a litt.e more. than discounted. The lection returns failed to bring the expected amount of new buying and professional trad. CTS took profits in the general mar ket. This started a decline in rail road and industrial stocks. with which the eoppers are naturally to some extent At the moment it looks as if prices would go somewhat owcr. though good rallies are to be expected from time to time. The bearish element will taks advantage of every element of weakness in the situation, and cause a renewed discussion of al, the depressing factors which hang over the market These include temporarily higher money rates and the Standard oil and Tobacco cases. which have not yet been passed upon by the supreme court. and the final action on the request of the railroads that they be per. mitted to advance freight rates All of these matters should be set. ted and out of the way within four or five months, and anticipation oi favorable decisions may encourage { renewal of buying which win carry market prices considerably higher in Jenuary.
 The metal situation is i'm proving steadily. and the plans foI consolidating many of the larges, producers have not been abandoned but are simpy held in abeyance awaiting the supreme court decis ions previously referred to. Should these decisions be favorable to the Tobacco and Oi; companies, there is practically sure to be a very strong bull market in copper mining shares next spring.
 There is no reason to anticipate any more than a moderate recession fin copper share prices at present Whenever the better class of stocks are weak they should be bought
 Calumet & Arizona's plans fol absorbing Superior & Pittsburg will probably be. announced in the nea1 future. It is reported that the rectors who recently visited tn properties were greatly pleased b, conditions at the Superior & Pitts burg. and astonished by the immens, bodies O, ore which its deve,opmen work has put in sight for the pas two years.
 Recent market developments indi cute quite conclusiveiy that tn consolidation will be on a basis O one share of Calumet X Arizona fo four of Superior & Pittsburs. Thi will call for the issue of 375.0o0 new shares by Calumet & Arizona, ant it is not improbable that the capi tai zat on will be increased to 600,00 shares. By selling 25.oo0 new shares at $50 the company would be able ts raise $I.25D.000. which amount vii probably be needed before long tt increase the capacity of the smelter The company has approximately g. 100000 surplus of quick assets now but with it's large volume of opera tions and a Reproduction of 60.000, 900 or more pounds of copper an nually, it will need this money foi working capital.
 The consolidated company car very easily increase its production to 10000 900 or s0.000.O00 pounds o copper ahnilally and maintain cost of under nine cents a pound Such an output would give it earn ings of approximately g on 13-cent and over s7 on 15-cent copper fol each of its 6o0,000 shares. In view of these prospects, it seems to me that Calumet & Arizona stock is selling too low. On reactions I would buy it.