The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-25
Doubted if Porphyries Can AT,
ford to Surrender Their
Many Advantages.
WERE FINANCED To
MEET HARD TIMES
Present Conditions Present
Real Test of Their Ability
to Make Good.

Despite the rather confident and per
sistent expectations prevailing in the east
in regard 70 a merger OF the copper pro-
ducing organizations. there are q great
many western students OF tine situation
who see numerous difficulties in the
way OF such Al programme. They reanZe
that tho wIsest heads and the richest
purses of the world are behind the cop
per industry despite their past disregard
Of mutual interests 10 such an extent
that they have been somewhat at war
with each other, and that they can BRING
about nearly any Cousummation desired,
the only question being what Is desired.
In the first place countless millions oi
dollars have been called for and secured
from tho public by tho so-called low
grade. lowe cost porphyry producers for the
purpose Of placing them in condition Tor
operation. The porphyry people have
maintained all along that they can pro-
ducc copper for such an extremely 10"
cost per pound that the metal could not
reach so low Il point as TO prohibit 10
them a pront. The porphyries were IN
the business for blood, and the old-laSh-
ioned vein propositions would be com
PEELED either TO quit business or reduce
their costs to meet the expected cost OF
the modern propositions.
Theory of Porphyries.
People have supported these porphyry
companies On this theory believing that
copper would never go so low as 10 put
them out OF business. 1t is not likely,
therefore that stockholders and bond
holders OF the porphyries will welcome
any compromise with the old enemy, the
vein mines. that win eliminate the use
fulucsS Of Just the copper producers which
were conceived and financed for the eM-
press purpose OF meeting exactly such
low priced metal conditions as now pre-
vail. They doubtless would feel that
any such compromise would be n confess
sion Of weakness on the part OF the newer
,CLc nornbvries were financed for the
purpose OF making copper at cost OF
from TO cents per pound. the pubic
participated in them on the theory that
they stood the best chance OF prosperng
under adverse conditions not for the puT-
pose OF holding the umbrella over the
old fashioned producers. The west reels,
pected advantages would be pretty much
a breach OF faith.
Stock Market and Mergers.
II is interesting 10 note in connection
also with rumors of a gigantic merger
that the only objection advanced 10 the
Calumet & Hecla plan OF consolidation
was that the formation OF a great oreani-
zation TO absorb a dozen different COM
panies would eliminate stock trading. 1t
was urged that thousands OF shareholdera
would deal in Il dozen different moderate
priced stocks where very few would he
a bic 10 deal In big stock held at sew
eral hundred dollars per share. II Is not
likely that any big merger will be at
tempted which would tend TO eliminate
stock trading by the average investor.
and the average Investor cannot touch
an issue which has market value OF the
average mans house and lot.
Unless the big copper interests desire
to eliminate the public entirely from par
ticipation in tho Industry 1t Is NOT easy
to map out what plan of future policy
could be adopted other than the sur
render of some of the strongest arsu
ments and advantages so far advanced
TO influence the public in it's investments.
The domestic surplus OF copper today Is
a trihe larger than tho average months
domestic deliveries for consumption and
exports. The cry OF overproduction.
therefore. seems rather far fetched. II
looks az II the hard times CRY had been
on the copper Industry.
which Is expected to bear the whole bur
den alone and uuassstcd.