Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1913-01-26
WALKER PREDICTS
QUICK RECOVERY OF
PRICE OF COPPER
Declares There Is no Reason
10 Believe That Ii Will Go
Below Sixteen Cents
Conditions Now Unlike in
1907
SEES METAL HIGHER
THAN DURING 1912

THAN DURING 1912
Following are some extracts from
the last Walker Weekly Copper Let
ter in the Boston Commercial:
There really is no market for COP
per al the present moment and this
condition is likely 10 continue Tor
about a week Ionge.. A few hundred
tons OF electrolytic has been sold this
week al l6 is and 1914 dents a
pound. Little il any lake copper Is
being sold. Large producers OF both
around 10 "a cents, hut when they gel
bids OF is - cents they accept them
Buying demand at IL "a cents ceas-
ed two or three weeks ago aud con.
sumers are refraining. as far as pos.
sibie, from making purchases ana
waiting 10 see how far the pr.ce will
decline. indications are that i great
many consumers will have TO buy COZ
per within a week or two and when
they come into the market a price
probably Will be agreed upon which
viii mark the bottom of the presen.
slump. As soon as consumers are
satisfied that there is to be no fur
There is absolutely no reason %
believe that the price will decline be,
low 10 cents, or that il will remain
as low as IS or Il cents for any con
siderable length of time The metIl
situation is entirely different now than
IL was in 1867. when the price OF
lake copper declined from 20 1-2 o
IL IL cents. Al that time consumers
had overbought, anticipating an ad.
vance OF at least 30 or IS cents 2
pound, When the market weakened
they endeayored to resell their SUI
plus holdings and there were three |
or four sellers for every buyer Con
sumers are now entirely bare of sup. |
plies and the worlds visible surplus |
Is insufficient to oyerstock them. even
II they bought ii all.
OF course the worlds production is /
very large and when the buying move. |
nent Is resumed il will have TO he I
continued in order to sustain prices.
Il general business conditions contin |
he as good as they have been during
he past four years. however, and the
railroad Disqualification now planned
S proceeded with. consumption viii
exceed production and
before the end Of this year the metal
'ught 10 sell higher than it did at
my time in 1912.
Calumet and Arizona
Calumet and Arizona will not bene.
il from the use OF its new smelter
lntll about the end of this year. after
which ii should produce a little more
han 100 pounds OF copper annually |
or each share OF its stock. and it Is
'robable that it will be able TO reduce
he cost OF its production to about
even cents a pound.
Old Dominion
Old Dominion is now making add
ions 10 its reduction capacity, which
hould enable IL TO produce 10000 900
ounds OF copper annually. In lgi4l
nd thereafter. at a lower cost per
ound than il has ever maintained in
he past. There is every reason TO
xpect that Old Dominion stock will
.yentual,y be worth SIS to 500 a
hare.
Ray Consolidated
Ray Consolidated is not as yet max
az much of 4 showing in the matter
earnings. Its output win increase
teadily and toward the end OF this
ear it should be producing at the
ate Of Se.000.000 pounds annually.
he cost OF It's copper should be re
uced meanwhile to nine cents or lessi
er pound. When operating to full $
apacity Ray will be able to earn
bout s2.5e share on IA cent cop.
er market.
The Shannon
Shannon directors plan TO purchase
nd retire a considerable block of its
outstanding bonds this year. Il the
rice Of copper averages II cents o. !
CHER the company probably Will close 9
S fiscal year with no more than
100000 OF bonds outstanding against
) railroad, which cost originally
$4,000. AS the bonds have lost thesI :
privilege there will be no &
crease in simmons capital stock c
syond the 500,0O0 shares now aat B
snding
The past achievements OF the shan 4
On Copper company are not generally J
lprecisted- Ten years ago Il hsl d
C goo shares and 100000 OF indebt b
iness. Since then IL has paid OF q
e 100000 from earnings. completed e
I'd enlarged its concentrat0r aad o
nel;er, purchased additional proper n
Is. built a railroad costing S150, B0O. G.
I'D total Of S750,e0e in dividends to ii
ockh"lders and the only Indebted v
ass shown in its recent annual re- y
ut was s470,000 of bonds outstan.i- q
L against the Shannon-ArizO rail | r,
ay, all Of whose capital stock =
Snec by the Shannon COPPER com. a
my. =
in the past nine years Sh1npna has ;,
IrDed about s2,506,000 net This !
oDey has been used for the greater n
ri &c pay on Indebtedness. improve !,
e csDpany's reduction plant. saDply !,
sttef transportation facIiit.es. eu- !,
.sse additional mineral ground and :,
LAY dividends. which 50 far have =
'eregated $3.50 per share. Al pres =
I shaLhon is paying % cents Ter