Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-24
AVERT COPPER WAR
Big Mining interests Said to
Be Close Together.
J. P. MORGAN IN CHARGE
Declared to Have Succeeded Where
Lesser Men Failed.
TRADE OUTLOOK NOT BAD
Business Conditions Are Declared to
Be Better Than General Pub
lie Has Believed.
TRADE OUTLOOK NOT BA.
By w. G. Nicholas.
Special Corrcspondence of the Star.

By w. G. Nicholas.
Special Correspondence Of the Star.
NEW YORK, July %, 1910.
The development of the week which is
entitled to first place of Importance is
the progress which seems to have been
made toward the contamination of a
deal between the leading producers of
copper in this country and Europe. The
course of the copper share market tells
the story, although there has been as
yet no official or authoritative announce
ment of Roadway in negotiations.
Under the surface gossip and rumor
has it, however, that matters arc in
very advanced stage, and that an actual
merger Of properties representing about
three-quarters of the production in
America is about to be pulled off. The
deal is believed to include about all the
important mining interests excepting the
Lake Superior mines, of which Calumet
and Hecla is the principal one. Efforts
to bring these mines into the deal are
said to have been attended by failure.
1t is now given out that these mines
can stay out, inaSmuch as the kind of
copper produced III (naC SecClOn mas a
special market and that the Calumet
and Hecla and other mines can continue
to run independently without interfering
with or jeOpardiZing the general situa-
ton, provided that the big companies
outside will come into the deal.
Morgan in Personal Charge.
]. P. Morgan is understood to have TAX
en- personal charge of the negotiations
very soon after his return from Europe,
and that he has brought the various fac
tions together by the sheer power Of his
personality and influence, the same as he
did with the warning iron and steel inter-
ests in 1901. For year or more the fac
tons tried to get together, but some
hitch always came up which blocked the
deal, and it was recognized that the
whole scheme might fall down for lack
of a leader in whom everybody could
place confidence and who could command
obedience in case of the stubborn and
willful opposition of any individual or
company.
Mr.. Morgan was the only man in sight
big enough and strong enough to under
take the job 1t is said that he was re-
luctant to do this, but was finally con-
WINGED that if he did not take hold there
would very likely enSue ruinous war to
the finish in which the vast financial pow
ers behind the Amalgamated-Rocke
Cole-R combination would be arrayed
against the Guggenheims. Phelps. Dodge.
Senator w. A. Clark and the other big
independents. Morgan, being tied up
with the Gugcenheims, would be forced
into the fight, however much. he might
want to keep out.
Didn't Want a War.
None of The very rich men who have
their multi-millions in the copper game
wanted war They had no appetite to en-
gage in a struggle that meant demorali-
zation and stupendous losses. 1t would
be struggle in which the big men in
control of most Of the low cost produc-
ing mines, and therefore, physically
strongest, would grapple with a group
which might command a larger amount
of actual cash, although not able to
mine the copper as cheaply.
With practically all of the big produc-
ers of the same mind as to the desira-
bility of a merger, the question resolved
itself down to the finding of plan upon
which they could all agree-one that
would be equitable and that would carry
with it guarantee of control of pro-
duction within the limits of consump-
ton, thus insuring reasonable prices for
the metal. There seems to be commonly
accepted theory that consumption would
not be checked with copper at Is cents
q pound, a figure that would satisfy the
mine owners and not be deemed extor-
tionate by the great users
Look to the Rothschilds.
Some such an arrangement has evident
ly been tentatively reached. From Paris
comes word that the Rothschilds will be
able to control the copper situation on
the other side and with IS per cent of
production under one management here
1t would look as though war had been
averted and that matters would gradual
ly adjust themselves upon healthy and
permanent basis. 1t is upon this theory
that the spectators have been huying
copper stocks in this market for the last
two days.
Antlcipations of the big boom in the
copper share market are quite likely,
however to end in disappointment. 1t
those in control of the great producing
if they can hold prices around
where they have been lately. Some of
these stocks have been held by main
strength upon artificially high levels and
If solid foundation can be built under
them within the next. year that ought
to be enough The opinion is strongly
held that it would be mistake to try
to run stock deal In connection with
a settlement of the physical difficulties.
copper situation will be a grand good
thing for the rest of the stock market.
1t removes a deadly menace and clears
the atmosphere against danger of total
collapse in an important division Of the
market 1t is that which has been hang
ing over the market and which has pre-
vented many of the leaders in the fnan-
cial district from participating in the
chorus now being conducted In
Wall street and through a. number o.
of influence and wide circu-
lation. Relieved Of this menace, senti-
ment is crystallizing in favor of a gen
eral price uplift, movement which is
recognized being timely and legiti-
mate in view Of the board business situa-
ton and conditions throughout the coun-
try
Money Aplenty for Bulls.
The outlook is for plenty OF money
for the conduct of a summer bull cam
paign. The banks are getting into
strong position and will have plenty
Of funds during August and the great
err part Of September. After that time
it Is not SO certain, for unusually heavy
demands upon the eastern money Gen.
tiers are looked for in order to move
the crops. Western and southern banks
are pretty we'll extended and will have