El Paso herald. (El Paso, Tex.) 1901-1931, 1917-09-24
PRICE OF COPPER FAIR;
CAUSE NO HARDSHIPS
NEW
WILL

-5HE announcement OF the government, fixing price
of 23z cents for copper, does the industry TINS much
good least: It ends the uncertainty which for some
past has handicapped the copper market by making
purchasers dread future contracts for fear the government
price would very much lower than the market price
Producers and consumers may now DO business with me
assurance Of stable price There viii be immediate actv
ity the copper market and purchases VIII not be limited
TO a weeks OF months requirements.
The price fixed by the government IS higher than was
feared and lower than hoped for Copper producers
had been aPprehensve Of 10 or 20 cent price, OF one
possibly even lower than either Considering the fact that
copper has been up to SO cents the scaling down TO 70
below would have been too Purchasers
deliberately remaining out Of the market IN anticipation
of government action have by not buying, caused the mar
ket price drop within three cents OF the price the
government has fixed. With normal buying the market
would have been close to 30 cents Therefore the reduction
from the present actual price to the governments price
IS not great
The hone had been expressed that the government
would price Of less than 25 cents pound IN order
that the industry might not suffer by reason Of severe
and especially IN order that the pay Of mechanics.
miners and others whose wages are governed by shong
scale based on the price Of copper might not be reduced TO
conform to a low government price.
As for the matter Of wages, the difficulty has been
solved very happily The copper producers have agreed not
reduce wages they would be justified in doing to con-
form to the sliding scale reduction Of three cents
pound in the price of copper would Justify the
sliding scale wages Of about Is cents day, but
the mine operators have agreed not to make any cut
That decision dsposes Of the chief apprehension OF the
Southwest regarding government price fixing applied to
copper The miners viii be LETT with their nigh wages
unimpared and they and their families and all the bust
enterprises even the farmers whose income largely
out Of the wages of copper miners viii not suffer
Surely the mine operators entitled Communication
for not insisting reducing wages IN conformity with
the cut in the price Of copper.
The net result viii be big diminuion Of the unusual
profits which the large producing companies have been
making but the profit viii be sufficient nevertheless It
only few years copper at the low mark Of
13 cents, q price low for small with small
capital and high costs Of operation but enough to pay
small profit the large companies like the Copper Queen
able to produce copper IN huge amounts at low cost
Since then the labor costs and mining supplies Of all kinds
have risen greatly continued improvements and
economies have enabled the companies to keep their pro
ducing cost per pound at about the same old level
When copper low operators used to long for the
good old days when the metal used to sell for Is cents
pound, though that for brief period, comparatively
and they Of the opinion would 90 above 10
cents again. They revised their views when sent
copper soaring and again revising their views since
the price has been fixed but the price VIII be high
enough for them to mine the at good profit and also
carry out their programs or extension and improvement
The only obstacle IN their way IS the strike situation
High copper powerful stimulus to the industry
that II encouraged OF energy but Of small
to develop mines Claims which had been idle for
seized upon eagerly. Companies formed
and stock Offered for sale that development work might
be undertaken The high price Of "copper" holding out
lure Of fortune, tempted investors Of all classes Unfor
tunate It also offered golden opportunity the stock
gambler and the public had constantly to guard against
wild cat" enterprises.
The price the government has fixed is still high enough
encourage the small companies mine which cannot
operate profit 235z cents Is mine. The price
such that property with fair be income
nor the development Of any properties to paying basis
indications and geological conditions to justify
such Development
There can be no great objection to the new fixed price
for copper II IS good, fair price and the Southwest VIII
the mines running right along producing their
most capacity providing the labor situation permits