The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-04-28
BLACK CLOUD IS
SP0|L|NC SKIES
Western Man Returned From
the East Draws Freezing
View of Situation.
SAYS COPPER IS
GOING LOWER YET
Outlook for Copper Decidedly
Bleak, and Little Hope on
Horizon.

welI-known mining engineer who has
been in eastern oenters for q few weeks.
and whose opportunity for observing con
ditions could not be better. was asked the
stock question on Wednesday In regard 10
what is the matter with the country, tne
markets and what Is 10 bo the prooanle
future OF copper. His answers were by
no means reassuring, and from one OF inc
most persistent optlmlsts he has become
a pessimist Of the deepest dye inns is
how lie figures the situation:
'Perhaps the Item that has cleared tho
sky more than anything else is the ac-
ceptance OF Governor Hughes OF the oher
TO become A Justice OF the highest court
of the land. The country has confidence
In him and his influence will have an I'M
portant hearing on the situation.
Gated position Just like the cost OF the
necessaries OF life have been boosted Ier
beyond where they belong, so copper
stocks have been entirely too high we we
have been discounting the future 100
much. No one evidently has faith In the
situation. Look at our markets In the
east, Several bull movements have beeh
attempted. but The people refuse 10 bite.
They cannot be coaXed back, one big
trouble being the fact that the public as
rule has carried the burden OF the pres
cnt slump In prices, the big fellows very
knowingly having dumped their stock
holdings when prices were firm and when
conditions appeared bright for stsll fur-
ther advance. m
Il find that many eastern authorities
believe copper VIII still further recede in
price during the next six months. EVERY
one admits that the tremendous copper
movement has failed TO materialize, anu
In looking about for a solution the world
has learned several heretofore unknown
or but partially appreciated conditions
which promise n still further pear the
industry In good time
Take. for instance. the failure OF the
big copper merger. II is generally said
that the big producers could NOT agree as
n matter
ter had hardly progressed TO the term
making point. X lis no secret in the east
was the unwillIneness Of Europe to play
ball With the Americans back OF the
schome. Not only did the American pro-
ducers want Europe 10 bite into the 5000
moo 900 required. and which Europe re-
fused TO do. but no American copper
merger would he a success without II IN
Volved European interests and money, IL
is not generally appreciated that In AFRICA
nre some OF the greatest copper deposits
ever dreamed OF. deposits which make the
modern low-gradc proposition look small
In comparison. Let some Of this copper
ground be developed. and taking into con-
sideration Its reported extent and rich
ness and the chcapness OF labor to pro-
duce the metal. and you VIII IND the the
metal laid down In Europe cheaper than
we can make and ship IL ourselves.
Germany. France and England arc big
consumers of copper and they also are
big owners OF African soil. These coun-
tries naturally want TO develop their
own African possessions, so why should
they sign UP articles OF agreement with
America and fork over millions OF dol
lars Just to better protect American cop
per companies7
"The consumer. they say, is buying
more copper than ever for consumption; mr.. m
has the greatest amount on which to
draw in the history Of the world, and he
knows that the innumerable new pro-
ducers coming on are not going 10 help
drive the price OF the metal up with their
cheap cost production.
"This al. may be called rot. but just
take a trip cast and you VIII find pracC-
cally the same theories as l have found.
If you can't go east Just sit down and
think the situation over for yourself. Re
cal! the many predictions tha. have
with q year or few months ago and
ask yourself II there is not something rad
ically wrong somewhere II the big In
terests could see any immediate hope in
sight, why do they not support the mar
sct. thereby accommodating some rldicu-
lously cheap stock, cheap when compared
thus taking advantage OF a tremendous
bargain sale? The big fellows arc pessi-
mtstic: they are worried. and they usu-
ally size a situation up pretty we'll You
wanted my opinion, and now you have
In this connection the following from
the Walker copper letter is apropos
IAN OF the news seems to be bad news.
and have never previously known a
time when public and trading sentiment
was so unanimously bearish, The public
and traders nave practically no stocks
left. commission brokers are carrying
smaller lines OF speculative stocks than
they have sor many years. and there Is
? considerable short interest. The situa-
tom Is one in which bulllsh opinion
cDirts public disfavor. ! feel. however.
tbat all OF the very bearish factors /
have enumerated. and many more. have
heen fully discounted already. and that
the next important move In The market
will be an advance in prices Though I
know ] going contrary to the tide Of
chase OF the stocks of all the legitimate
copper mining companies. INCLUDING those
representing good prospects as we'll as
producers"