The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-12-03
COPPER WILL
co TO SIXTEEN
Declares George L. Walker;
Worlds Great Merger Is
Certain.

Ihat the worlds great copper COM
panies are about to merge and the price
or copper De raised to 10 or 16 cents is
the positive declaration OF George l..
walker. one Of the leading authorities
on copper He says in his latest letter.
/ can state from positive knowledge
that plans for merger of the leading
copper producing companies or the
United States. and which will proba blv
include the big mines of Canada. Mex
leo. South America. and possibly the
RIO Iinto In spain. are being put in
shape. and that the negotiations Of
terms and prices will begin very soon.
Inc worlds leading financier is inter-
ested. and undoubtedly the combination
WI De brought about under his direc-
In conferences already held IL has
peen decided that 10 or 10 cents is a
Iair and reasonable price for copper.
ana IL rs the opinion OF experts that the
price can be maintained permanently
at that level without retarding the con-
sumpuVe demand. An advance Of 3
cents a pound In the price Of copper
would Increase the net profits on the
Morlds output S5f.000.00O annually.
Lnls amount Is 10 per cent on $40. 000.-
vVu- state this because it gives some
idea as 20 what will be the capitaIiza-
tion basis OF the consolidated COM
worlds producers are showing an aver
age net profit OF between and cents
per pound on their output.
Vast Capitalization.
The capitalization Of the new COM
lany VIII probably be arrived az as
follows. II viii he found that the Sc
curllles Of the producing mines 81 the
world are now selling in the market
on the basis Of about 90 cents for each
pound OF copper produced and earning
between and per cent on this valua-
Ton. RMS is a market capitalization
selling at Is cents they are able to
earn TO per cent on about $3.50. 600.
Add TO this latter amount the S5f0. 00O.-
uVu or capital which would be warrant
ca by the reasona BILE assurance Of a
permanent Decent copper market I'm the
future and ~ would mean Cauftaliza-
ton S1.270. 000. 900. This would result
In the owners or the stocks Of produc-
ing copper mines the world over. prob
ahlG 9o.OVV TO $4,000 people. benefitinE
20 the extent of S19O.0O0.oO in the price
appreciation or their holdings. and that
their stocks. which now yield an aver
age or not over per cent on the mar
ket quotations. would then be able to
advanced valuation. The stock Of a
company formed on these lines would
probably sell 80 per cent above par. as
10 would practically double the annual
profits OF the worlds copper mines
Viewed in its broadest sense. copper
production rs not now Yielding "a fair
business profit or course great many
individual mines are earning enormous
profits and paying tremendous divi-
dends on the actual Investment which
they represent. but each Of these is a
success against which must be charged
up the cost or many failures. To illus
trate. were IL not for the fact that a
good copper mine is capab Of earning
substantial dividends on many times its
first cost. the prospecting for. explora-
ton and DEVELOPMENT Of new properties
would cease. Many millions OF dollars
are expended every year i'm the search
for copper mines and. as n rule. only
two or three. and often not as many
really valuable ore deposits. are found
The fact that ton or ore in the
ground can be mined. milled smelted.
the metal refined and sold at a profit
or from 80 cents 20 81. or even s.. on
l3-cent copper market. does not mean
necessarily that the industry is on =
satisfactorily profitabl basis The
mere cost OF shooting fox and skim
ming IL probably does not exceed 80
cents. but fox skins do not sell for 80
cents. bccaflse the expense to the pro-
fessional hunter OF finding one to shoot
I is many times this amount. Copper ore
In the ground. with the mine closed
down and the Investment accumulate C
compound interest. undoubtedly would
! be worth more eventually than 10 is
mined now and it's metallic content eX-
/ tracted and sold at IL cents a pound.