The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-04-16
March Consumption Was at
Rate Of Billion and Half
Pounds Annually.
But OUTPUT WAS
A BIT TOO LARGE
Producers Can Not Complain
About the Present Rate
of Consumption.

The cast and west have reached iden-
teal conclusions in regard 10 the March
statistics of the American Copper Pro-
ducers association, and tho Wall street
Journal has a discussion Of the situation
which will be read by the westerner
with considerable attention In part the
Journal says:
From the standpoint Of consumption
the copper situation can he regarded as
favorable, from the Niewpoin, OF pro-
duction. unfavorahle. Had the copper
companies inaugurated a policy OF cur
tailmcnt Two years ago instead OF eight
months ago the situation today would
be much stronger than 1t really Is. and
prices for the metal more satisfactory,
There can he no just complaint by pro
ducers on the course of consumption As
a matter Of fact the increase I'm copper
consumption has been much more pro-
noUnced over the last few years than in
the case Of the ma ajority OF commodities.
Copper consumption In periods Of depres-
sion has remained normal, whi!c othcr
industries were reporting shrinEage In
business ranging from % 10 30 per cent.
For the last half century copper con-
sumption. with few exceptions. has shown
an increase each year. Over the last
three years output has been practically
stationary for Inc first time In any SIM
liar period in n generation.
Where the Trouble Lies.
Inc weakness OF copper neldl LOT tnt
last year or two has been due TO the
failure OF producers Ia regulate output
within actual requirements OF consump-
tion. Last summer producers began
policy of Curtailmcnts hut IL is hard to
believe this movement has been success
ful by a comparison OF production since
then with preceding months. With A rec
ord output in March, 1t would seem that
either new sources of copper production
have been operated or certain mines have
failed TO comply with the so-called gen
tlemcns agreement 10 curtall Tor the
good OF the industry
That there has been some curtaimen,
cannot he questioned. but wiki certain
mines 1T seems that curtailment has been
based upon maximum capacity which has
not vet been reached through actual pro-
duction, II the copper companies are
able 10 produce more than 10000 ooo
pounds of copper in single month ON
a. curtaiment Of IL per cent. II would
seem that they would he able actually
TO turn out 40. 600. .000 pounds month
" called upon TO operate fun. The most
remarkable feature is the continued
heavy rate Of consumption, amounting in
March TO over l25, 900 000 pounds. or at the
rate of l.50o. 900, ,o0o pounds year. with
a consumption as large as this II would
seem that producers would he only too
willing 10 cut down output in order 10
prevent overproductlon However. the
surplus stocks of 162 900 600 pounds can
not he considered excessive with con-
sumption AT the rate OF more than 125, =
100000 pounds month.
One very good reason for the failure of
number of copper companies To make
material reduction in output Is that
they arc paying dividends beyond the
bounds OF reason under the present con-
dition of the industry Certain of the
new mines began dividends az a rate
that promised TO absorb all earnings over
fixed charges Now. a severe curtail-
mcnt In output would cut off n large per-
cent9ge OF revenue and dividends might
have TO be reduced accordingly. With
hug h,Nncp latt ft-fs
tory. II would seem that producers have
TO cut output very far below the 130.-
100000 pounds A month rate in order TO
prevent lower prices for the metal rs
stocks.
Outlook for Metal
While the March statistics we're salts
factory from the point Of view OF actual
increase In stocks during March. the very
large production shown put dsmper OIL
what would otherwise have been very
good statement One OF tile members
present at the meeting of producers
said:
'Transpose or iuggle the figures in any
way that YOU wish and the best showing
YOU can make is a. poor one. Production.
export. and domestic delivery totals for
January and February were below wha /
might be considered normal and the gain
in production for March was natura!
evening up, If the iron and steel bust
ness furnishes any criterion for copper.
II seems that copper deliveries will not
show much gain. immedia tely at least
"Wha, Is the use Of cutting down pro-
duCtion to the extent of a few millions
of pounds IT there is q constantly in
creasing output coming upon the market ?
One trouble with the entire situation is
that it lacks that control which n man
with enough power and personality
could maintain, and for that reason II
looks to me as though We were in for
a long siege Of low prices. With the ul-
Innate elimination OF The weaker pro
duccrs, The copper bus css has gone
through such periods before and will
eventually emerge from tho present de-
preston, but the immediate outlook. 10
say the least. is somewhat discouraging.