The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-17

.LOW-COST COPPERS
KEY TOSITUAT|ON
Reduction of Metal Price Gives
East lnkIing of Impor-
tant Fact.

That the lower price of copper is
causing eastern investors TO awaken to
the important position which is occu-
pied in the copper world by the So
called porphyry producers, Is evident
from the recC Mt performance of the
eastern stock markets. And it would
appear TO be time for the awakening.
II has for a long time been interesting
to note the unanimity with which Bos-
ton and New York stock market tai
ent" had studiCusly ignored such issues
as Utah Copper. Nevada Consolidated,
Ray Consolidated and the yet newer
''porphyries." Efforts To school the
mind of the eastern investor into the
belief that the Lakes and the Buttes
were the only 'coppers,' have been 50
apparent that they have become almost
humorous. What are really back num-
bers are referred to as the standard
coppers.'
But since the price of the metal in
stead of advancing in accordance with
eastern predictions, has continued to
decline slightly, occasional reference to
the pOrphyries ana the possibility of
their being induced to curtail prOduc-
ton has become imperative. And that
has caused TIE eastern investor to
wonder II the pOrphyries may not be
performing the role of the band wagon;
and even the advisabiIity of getting
into the band wagon has occurred to
some of them.
Canvassing the situation has brought
TO many the startling knowledge that
such producers as Utah Copper and Ne
Vada Consolidated are in no immediate
need of curtailing production-that they
can 60 right along producing copper at
d profit until the price goes SO low that
the Lake and Butte mines VIII have to
either suspend production or operate at
a loss. Then without question the low
er price Of the metal would result in
extending its use and the price would
go up. So that there would be no need
for the porphyries to cUrtail at all.
Running Close to Shore.
a Boston statisticiap has discovered
that Il per cent of the American out
put of copper is produced at a cost
above II cents a pound, the average of
that 240, coo 900 pounds of the metal be-
ing close to 1115c. Which means that
the unfortunate producers who take
part in making that II per cent of the
output Will be running close to shore
in the event that the price of copper
utupn 40 Il ttHLS q pGuilu-Nu me Gic
once despised pOrphyries, producing
copper at a cost around cents a
pound, win be making as good a profit
as any reasonab Die business man could
ask for
Then arises a question-of ethics, per
haps. Should the pOrphyry producers,
to help the high-cOst producers out Of
a hole. cut down their forces and re-
duce their oUtput-as the expense of
higher cost of production for them. III
addition to loss of gross business? That
would be the thing to do, no doubt,
We're business operations today univer-
sally conducted in accordance with
brotherhood Of man" ideas; but until
such ideas are generally adopted
wouldn't it be human nature for the
lOw-cOst producers TO continue grind
ing out copper and paying dividends to
stockholders. who are always more or
less grasping?
It is a fact so patent as to need no
that the porphyry producers
especially after Ray, ella, Chino and
Inspiration shall have been added to the
list-will dominate the copper situation
And poor old Boston and New York are
just getting wise" TO that situation.