Los Angeles herald., 1910-01-16
BY DANIEL GUGGENHEIM

e the production of copper IN lhe
Il United States is only beginning to
, be fully realized. Its commercial
value for the year 1909 was approx
: mately $15OOOO,O0O, one-half of which
was exported. In payment we received
{ from the Golfers of the world fully
? SIS. O00. 900 in gold. No mineral produc-
ton of this country exceeds in value
that of copper, except iron, and IRON
has no such value as copper in main
tanning our credit balance in the
worlds market.
With the production of copper, unlike
that of iron, goes hand in hand, and in
; the same ores a very notable produc-
ton of silver as well as gold and lead.
1t is impossible to state the value OF
| such associated productions, but 1t
may amount to another $5O,0OOOOO,
1t is not generally known that the
copper producing mines of Butte are
larger producers of silver than the
mines of any other locality in the coun-
try. In fact. the Anaconda was first
worked a. a silver mine.
The great copper mines of the coun-
try often require for the reduction of
their ores concentrators, smelters and
refineries costing $10000,000 for a single
mine. Railroads of considerable length
usually have to be constructed for the
express purpose of transporting the
products of such mines and of carry
ing to them the necessary coal, ma
chinery and supplies. The many thou
sands of men employed in these mines
and smelters are the founders of yeri-
table cities in the deserts.
Worthy of Consideration
The ramification of business and the
multiplication of consumption, and
the welfare of millions of inhabitants,
! 1,ac "a ORIGINAL aytT1 pf ion
of wealth from the bowels of the earth
to the extent of 5000, 100000 is worthy
of consideration.
The most notable incident in connec-
ton with the increased production of
copper has been that of the porphyry
! fields of Utah and Nevada. These
ores, which five years ago could not be
mined with a profit, are now being
! worked through improved methods and
are likely to be as notable producers
| in the future have been the Lake
mines and the Montana mines at Butte
! in the past.
Prices through the year have ranged
close to 13 cents, and have remained
| remarkably steady. Producers have
had faith in their product but con-
sumers have been able, through accu-
mulating stocks, to counteract every
effort to bring about an Improvement.
The public should not fail to recognize
the fact that copper is selling at vir-
| tually panic prices, and during the
| great depression of the recent panic
prices were but little lower than the
prevailing price during this year of
! great prosperity. 1t is well known that
a considerable proportion of the worlds
! production is costing nearly as much
as the market price. In other words,
/ the supplies of the mines, which can
/ be measured and which are not ex-
| hausted by any means. are being de-
/ pleted with no measurable profit to the
| producer.
Nevada Copper Profitable
| The new producers in Utah and Ne
vada are able to place their copper
upon the market at a fairly satisfac-
tory profit, even with the present mar
ket prices, and they have felt the natu-
raj incentive to increase their profits
/ by increased production. Consequently,
month by month. the stock of copper
reported in the hands of the Copper
Producers Association of the United
| states. and also the amounts of visible
! copper reported in warehouses abroad,
have shown a steady increase. This
stock, however, of 100000 tons cannot
be considered excessive when we take
into consideration the enormous in
| crease in the consumption of copper
| since 1900 when 10000 or 10000 tons
were considered a normal stock. New
| ertheless the time has doubtless ar
rived when there should not be mined
and forced on the markets of the world
! a production in excess of actual needs
In no other way can the prices of cop
per be stableized.
The Generalization caused in the
past in the manufacturing industries
using copper by such excessive prices
as 25 cents per pound and the losses
in the financial world by the subse-
quent decline to 12 cents. is fresh in
our minds. Such excessive fiuctua-
tions in value result in loss and ruin
to the whole community, whether cap
italist or borrower, producer or con-
sumer. The advantages of a stable or
fairly assured price are beyond dis
pute.
To Develop a Prospect
The enormous capital required to de-
velop prospect to q producing mine
and to build the necessary reduction
works with railroad connection could
be more readily obtained at a greatly
reduced risk. The manufacturer of
copper would be relieved of all risk as
to his raw material and would only
have to consider his commercial haz-
ards and his manufacturing profit.
The spirit Of speculation which is en-
gendered in connection with such rad
ical advances in prices is most un-
healthful, and on the decline those are
sure to lose who are least able to do so.
Much has recently been written with
reference to the copper Developments
of the interior of Alaska, yet those who
know the facts are aware that only a
few copper properties exist today in
Alaska which can be called mines, ex-
cept on the seacoast, where transpor-
tation by water is available and sup
plies and fuel and labor can be OBJ
tained. From these mines in the in
terror not pound has been produced
as yet, although the more valuable
ones were discovered in 1901 and the
copper in extraordinary purity is ex-
posed and awaits the absolutely neces-
sary transportation facilities.
Too Far Away
Even with the construction of a rail-
road 130 miles to the seacoast. with
three bridges costing each $1,000, 900,
with engineering difficulties on a nor
tion of the line requiring the expendi-
ture of 100000 a mile to overcome. it
is to little, if any purpose unless fuel
can also be produced and made avail
able. Without this neither railroad
can run nor mine can produce. With
out the faith and ability to expend
these many millions of dollars and to
take the necessary risk the wealth of
the known mines and the unknown
prospects might as we'll not be in ex-
istence.