Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1916-07-02

tons Gncluding the copper in brass).
1t is probable that the large produc-
ers have big stocks on hand, which
by reason of the enormous cash sur
plus held by the companies they are
quite able to carry. #
with lower prices, and slackened
demand, the big companies can and
probably will curtail production as a
means of steadying prices. The do
nestle consumers WILL of course buy
in (hand to mouth) quantities, hoping
for lower prices; they have no surplus
and at present prices, the use of cop
per in the country is confined to only
those trades and uses for which il
is absolutely necessary; it is safe to
say domestic consumption outside of
! war supplies is not over one-half of
normal, or of the figure which pre-
| vailed in 1913. This loss will be re-
covered only with a price of 15c or
| thereabouts.
1 "On the other hand, Germany, Bel
GUM and Austria have taken no cop
per from us since July, 1914, Germany
was our largest customer for two
years before the war, but it is now
known that this was in preparation
for the war, and not for general trade
use. Much of this is supposedly used
up and a demand for huge amounts
of copper is expected from these coun-
tries when peace comes. That this will
be true is certain; it is foreshadowed
by reports that the German govern
ment has already made heavy pur-
chases in America for delivery after
the war
1T is believed, however, that the END
of the war will liberate very large
amounts of copper, now locked up in
war munitions, which win help re-
store the depleted domestic store The
! great demand viii be to supply Ger
many's export industry, whose manu-
facturers will endeavor to regain los
trade, in electrical machinery and 9th.
er articles to which copper is an i'm
: portant constituent. Sweden Denmark
and even Spain, have been drained o
copper and must replenish their stores
This foreign demand, brisk TO
awhile after peace is declared, but il
the main controlled by cautious buy
ers who hope and expect lower price
as soon as peace comes. coupled witt
our domestic demand, will it is be
7 lieved, keep up a steady pressure OIL
: the copper market, lessening as price
5 rise, increasing as they fail, so tina
if the writer's deductions are correct
f the price will be tanned, for a yea
after the war, at or about 15c
1 That this figure permits large earn
r ings is well known, though it is ap
A to he forgotten in the present initiate
3 war earnings of the companies. TAX
I Ray Consolidated, for example: A
3 lac copper its earnings, on its presen
= output and grade of ore would be 81. s
n per share and at Ice copper s4.27 pc
= share. and the increase is Tic for eac
r advance in the price per pound {
e copper.
Copper costs control the output {
= the lesser companies only. The twent
5 really big producers, more especial
l. the four big porhyry coppers' pro
l. duce so cheaply and al costs SO nearl
e equal that costs alone do not affeC
e production it is price with deman
: that alone can compel increase or de
n crease of copper made.
/ THE reader who desires to estimat
It stock values or dividend returns mu:
: realize that such figures depend upO
s not only the price of copper but ais
Il on the mining of an average grade
ore, on normal known operating cost
and on an annual production of
certain fixed amount In all such ca
y culations II must be remembered ths
II the price received by the compani,
r. is always a little less than the cul
II rent quotations. and in the case of II
: Utah Copper company it was 021 cen
1t below for 1918 and 1914.
n The present year will show sue
II extraordinarily large earnings that
II yearly net profits be divided by II
ar number of shares to get the year
20 surplus earnings per share the resul
* ing figure could not be safely use
1t as basis for estimating the real vail
lie of the stock, since it could not
maintained in ordinary years.
Al TO get a safe figure one shou
lie calculate earnings per share at 15-ce
10 copper. and the resulting earnings p
lie share multiplied by 10 win give Il
'e safe investment value of the stoc
y, This indicates that the standard CO.
a per stocks are all bargains at prese