The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-11-29
Evident Certainty of Great Con-
solidation Is Feature of
News.
WALKER GIVES AN
IDEA OF THE PLAN
Would Elevate Price of Metal
Three Cents or More a
Pound.

The advance sheets OF the weekly cop
per letter OF George L. Walker have ar
rived, in which is a very interesting dis
producing organizations. The following
extracts Will prove of timely interest:
II can state from positive knowledge
that plans for q merger OF the leading
copper producing compa mics Of the United
States. and which will probably include
the big mines OF Canada. Mexico and
South America, and possibly the Rio
Tlnto in Spain, arc being put in shape.
and that the negotiations OF terms and
prices VIII begin very soon. The world S
leading hnancier Is interested and un-
doubtcdly the Combina ton will be brought
about under his direction.
I'm conferences already held il has
been decided that 10 or Is cents is a fair
and reasonable price for copper, and IL is
the opinion OF experts that the price can
be maintained permanently AT that level
without retarding the consumptive de-
mand. An advance Of three cents a
pound in the price OF copper would in
crease tho net profits on the world S
output s5i 900 900 annually. This amount
is 10 per cent on $40, 600 600. | state
this because IL gives some idea as TO
what VIII be the capitalization basis OF
the consolidated companies.
"On the present price OF copper the
world s producers are showing an average
per pound on their output.
The capitalization OF the new COM
pany probably Will be arrived at as fol-
lows II will be found that the securities OF
the producing mines OF the world are
now selling In the market on tho basis
OF about so cents for each pound of cop
per produced and earning between and
S per cent on this valuation That is
a market capitalization Of about one
billion dollars. With copper selling at Is
cents they are able TO earn 10 per cent
on about $3.50 600, 600. Add to this latter
amount the $40. 900. 600 OF capital which
would he warranted BY the reasonable as
surance OF permanent 16-cent copper
market in the future, and II would make
a capitalization OF Sl,270. 000, 900.
This would result In the owners of the
stocks in producing copper mines the
world over. probably $4,000 or $4,000 peo-
pie. benef,inC TO the extent of $3.50, 900, :
ngs and that their stocks. which now
yield an average Of not over per cent
on the market quotation. would then be
able 10 show earnings OF 10 per cent on
company formed on these lines would
probably sell 80 per cent above par. as
II would practically double the annual
profits OF the worlds copper mines.
Viewed I'm It's broadest sense, copper
production is not now yielding fair busi-
ness profit, OF course. great many In
dividual mines are earning enormous
profits and paving tremendous dividends
on the actual investment which they rep
resent but each OF these is a success
against which must be charged up the
cost Of many failures. To illustrate, were
Il not for the fact that a good copper
mine is capable OF earning substantial
dividends on many times its first cost, the
prospecting for exploration and develop
ment OF new properties would cease.
Many millions OF dollars are expended
every year I'm the search for copper
mines. and a result only two or three
and often not as many really valuable
ore deposits arc found