Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1912-10-19
WORLDS COPPER VANISHING.
The Consumption in the Past Two
Years Has Exceeded Production.

Both foreign and domestic consum
ers are in the market and sales are be
ing made for delivery as far ahead as
the carly months next year There
is every indication that the price will
continue to advance. writes George L.
Walker in Boston Commercial.
1t is now quite certain that the large
amounts Of copper bought last year Al
low prices by foreign consumers have
gone into consumption. This means
ed production to the extent of approx
imately 25O,0O0,000 pounds in the past
two years. Consumption is still in
creasing and production is. being Sc
riously curtailed by the labor troubles
in Utah and the revolution in Mexico.
The indications are that there will be
shortage of copper in the world 5
market for several years to come.
The stocks of the several producing
copper companies are advancing. In
vestors and traders are coming to a
fuller realization of the immense prof
its that these companies are making,
they are impressed also by the CON
tinually increasing amounts paid IN
dividends. Marketwise the situation IS
working itself out precisely as it
should Producing companies are get
ting the benefit OF high metal prices
now and their stock should be the
first to reflect this great prosperity.
Later on speculation naturally will
shift strongly again to the shares OF
the various mining prospects.
The failure this week OF Stephen X.
Dow & Co will have a depressing ef-
feet temporarily on the low priced
speculative coppers. 1t is extremely
unfortunate that the cash assets OF the
so-called Dow companies should have
been diverted from legitimate chan
nels and lost A great deal of sym
patty is being expressed for President
Dow. and he deserves it: but so do the
stockholders also. They were honest
in their intentions when they bought
the stocks and had every reason. as
did others, TO blieve that the com
pany's financial affairs were being con
Quoted on strict business principles.
However these losses will prove to
have been very small by comparison,
ii mines are developed in the various
properties. 1t is an unpleasant Incl
dent and should so be treated and for
gotten 1t will lead to more care and
watchfulness by directors of other
companies and this will prevent re
currence.
Tx is almost an invariable rule in a
blu market that mining stocks sell
much lower when a failure Is an
nounced or an assessment called than
they do soon after OF course there
are exceptions to all rules; but think
the old one will work out this time
and that all of the Dow stocks will be
back to their recent high prices with
in a few months or a year.
There is now every prospect that
aggregate dividend payments next
year by the copper producing compan-
les OF the United States will very con
siderably exceed those OF 1900 and
1907. While earnings this year will
show an increase OF $50 per cent IS
compared with 1911. dividend pay
ments probably will not average more
than 50 10 Is per cent greater. As
a result the treasury surplus of prac-
tically every company will be large
enough by the end OF December TO
warrant disbursement OF its total
net earnings in dividends next year.
The general range of copper share
prices is still ridiculously low. The
stocks OF all the leading producers on
the list, from Ahmeek down to VOL
VERNE. are entitled to sell higher |
am particularly bullish on CRANKY,
Copper Range. Old Dominion, SUPERB
or, Anaconda and the stocks OF the
various porphyry companies.
Those who do not care to invest and
who wish to take a speculative chance
in development proposition or pros
pect now have the best opportunity OF
an age. During the coming two or
three years there will be persistent
hunt for good copper mining pros
poets, and favorable developments by
companies now doing exploratory
work will be duly appreciated This
is good time to pick up TIE low
pr ced stocks OF Lake Superior and
other companies. z