The sun., 1912-07-15
HOW COPPER SELLERS
BECAME THE BUYERS
An Explanation Of at Least
Part Of London Break in
Standard Warrants.
NEW WORKERS OvERSOLD
So They Had to Get More Of
the Mctal-COmmcmt Of an
Independent.

u The large producing and selling interests =
in the copper trade have been most per
sistcnt in their contentious that the break
in the London copper market has been far
removed from the electrolytic market in
this country Furthermore. beyond what
their London cables have told them Of
speculative selling for short account as
well as the realization of profits for long
, account they have acknowledged ieno-
rance IA to the true Condit ion acc ompa nying
the slump in 81 a nda ri warrants in Europe.
THE SrN undertook TO ascertain moro
minute details regarding this situation and
discovered n man in close daily touch with
the copper trade who was " iling to go on
| record with what he knew OF the matter,
facts that came to him through his associa
lion with those who both buy and sell
The metal. NJ. T.. Appelbaum. an inde
pendent copper dealer who handles in the
neig ghborhood of 50. 900 900 pounds of copper
annually. has had some first hand informa =
tion which he gave the writer Yesterday.
The recent brcak of stan lard warrants
in London. he said. was started by two
large spec ulat tors who heing short OF copper
here and long of standard warrants abroad
wished to realize their profits on s,anda r,ls
About til" same time that this realization
occurred rumors were spread in London of
large hidden stocks In the United States.
Naturally after a five cent pound advance
large bull following in standard warrants
had sprung into being and they. wishing to
cinch their profits. started selling
The best proof thar there has been no
manipulation in the market has been the
fact that none Of the large interests have
gone to the support OF the market for they
have known that the strong statistical
position of the metal would bring about a
rebound in prices as soon as the selling had
| ceased
Seeing the break occur large New York
| interests tried to buy large quantities of
| eleotrolytic for July and Au us, clearly
| showing that they had heavily oyersold
So far the quantities obtained by them
| have been insignificant
| Considerable criticism has boon heard
| that while producers advanced their prices
with the standard market they did not
, follow the recent decline The best answer
! that could be- made is thaN they could not
| do 50 wen had they desired. In order "a
sell al any price tor nearby delivery one
must rave 1t and a. | stated bcfor" the
same selling interests bclug heavily short
and desirous of purchasing copper could
not anord 10 offer copper AT lower prices
| 'On Thursday morning elcc,roiyiic copper
sold freely n 10. cents cash bv arbitrag,
| houses who considered rlcctTolytic too hi III
| as compared with standard warrant prices
and al the figures prevailing they made an
arbifrise profit of about 81 n ton. Friday
| u cents oelivercd 80 days was bid and
declined by all sellers
1T is very doubtful II io.WO 900 pound.
! of July copper could be- secured az IL. cen,
a pound.
There has also been a good deal of talb
ABOUT the pig copper output being greater
than shown by smeltrr returns. | find 'ha,
! IN the long run the TWO adjust themselves
! IT has been most peculiar thing tha,
when copper advances all sorts OF charges
are made although interests al the head oi
= the market are known 10 l.. men OF the
, highest standing. 1hcs" charges have
kept consumers from making hi.. purchase,
! al lower prices. Barrn: business react ions
copper should sell not only ~ IL. cents
again but good deal higher No on,
| thinks of making serious a!lr-l,,ons when
zinc. tin. steel or iron advances. but every
body looks for an opportunity to blame
somebody when copper rises in price
| elievers in hidden stocks should visit
the rctineri"s and see for themselves IN.
! great stress under which they are being
operated in order 70 turn ONT III. copper
! These charges. | think. would be quickly
! rpfiIte