Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1912-09-07
OUTLOOK FOR
COPPER IDEAL
Producers Were Never in Bet
ter Shape to Prospect
Than Now

tacular if disastrous slump following
the 1907 panic, reaching SO low point
that great many producers of the
country found it practically an impos-
sibility to operate at profit, the cop
per producing world began perfecting
economies, cutting down little and big
extravagances here and there which
were endured cheerfully with copper
above 20 cents pound, and just when
these producers paused to draw the
first easy breath, feeling safe in hav
ing cut a few cents or fractions of 4
cent from their per pound production
to leap to the highest consistent range
cost, copper turned tail and proceeded
in several years.
! This is why, to a large extent, SO
many of the old copper producers of
the country are now in a position to
make unprecedented profits on 1734
cent copper market. By revamping
their mining, milling, transportation
and smelling arrangements, compan
les whose production cost not long
ago was i to II cents a pound have
reduced this to 9 cents or even less,
and if copper has entered another ex-
tended era of high ranges, as the stu
dents of events and the cycles that
seem to govern assert is positive, it
will be interesting to watch and see
| how closely to the new order of things
the average producer will cleave IN
the face of the temptations sure to
arise
High-priced copper frequently has a
demoralizing effect upon the produc
ing industry. The mine owner is so
anxious to throw his metal upon the
high market that he willingly sacri-
| fees numerous small economies, and,
as pointed out before in these col
rmns. it does not take long for the
whole personnel of a producing conf
pany from mucker to general mana
ger, to become imbued with the spirit
of haste and careessness, which.
though it makes copper quickly, re-
Mine employees figure that the com
pany is making such an increased to-
tai of earnings that wages should be
increased in proportion, and it is far
easier to raise wages than to reduce
mands smaller average wage scales.
them, and falling metal market de-
The principal companies, however,
so far have shown a highly satisfac
tory attitude, and the number of COM
panies so far that have increased their
/ dividend rates is small. This is some
what remarkable in view of the great
er earnings and the insistent demands
made by shareholders for higher divi-
bends as a consequence. Should cop
per continue during the balance of the
year at anything like its present range.
and should financial and general in
dustrial conditions remain in any de-
gree satisfactory, a score or more cop
per producing companies around the
first of 1913 will raise their dividend
disbursements.
! The depletion of the worlds visible
copper stocks during the past year or
two, due to an enormous increase in
the worlds consumption and the sew
eral months voluntary curtailment of
production by the principal copper
producers, has been a remarkable de-
velopment which only very few far
81 orb he
anticipated. The major producers
now occupy the somewhat peculiar
situation of fearing further advances
i'll the market price of copper, deem
ing an average price beow Is cents
pound far more consistent and bene-
fetal TO their industry than any range
in excess of lS cents a pound
There is in the word today the
greatest developed tonnage of copper
ore in the history of the world, the
result of the discovery and modern
development of the gigantic porphyry
copper propositions. The producer,
therefore, is DESTROYS of encouraging
the consumption of the metal. and UNI
wise market ranges undoubtedly
would bave the effect of curtailing
consumption by encouraging the use
OF cheaper metals in the place of cop
per. Pessimistic opinions on copper
are the exception, the prvailing inn
prssion being that the metal will re
main firm for an indefinite period. and
ii is the fact that the copper shares
have so far refused to reflect market
wise anything in proportion to the
satisfactory copper situation that en-
courages the owner of copper issues
to look for rising markt values.