New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-22
Friday, September 81, 1917

A general feeling of satisfaction in
financial and industrial circles over
the price fixed by the government for
copper found expression in buying Of
shares Of mining and smelling com
panies on the Stock Exchange. In
cidentally a further rise of 2 cents
in the price of silver to s1.0Sl2 lent
additional impetus to the demand
for the stocks of those companies
which are among the largest produc-
ers of silver, as well as copper. The
strength displayed by such issues
centred largely in Anaconda and
American Smelling and Refining,
which scored net gains Of rs and
SIS, respectively. The improvement
in other stocks of the copper group
was only fractional. The movement
possibly would have been more pro-
nounced had it not been for the fact
that Wall Street has been well in
formed in advance on the price-fixing
matter and looked for price close
TO the figure decided upon. The lib
eral attitude of Washington in the
case of copper is regarded in many
quarters as indicative Of q similar
policy with respect to the fixing OF
prices for steel and iron. The steel
men are now in Washington attend
ing the hearing on the Pomerene bill,
which provides for giving the gov
eminent power to fix prices on varl-
Gus iron and steel products. An
other week ought to bring this mat
ter to a head and give the steel trade
the information for which it has long
been waiting. The action Of United
States Steel common reflected
hopeful feeling among stock traders
that the prices to be named Will be
satisfactory. 1t sold at HIS, an ad-
vance of IA points.
Allowing for the fact that operat-
ing costs are now considerably above
what they were prior to the war, the
price of 231h cents a pound for cop
per named by the government is SUI
fcient, it would appear, to give all
of the producing companies sub
stantial and reasonable margin OF
profit. The average cost Of produc-
ton at the present time is estimated
by the copper trade at Is to IL cents
a pound of copper. This is the aver
age cost, some companies doing
much better and others not so well,
depending on the different methods
Ct operation and varying local condi-
tons at the mines. Outside the trade
an unprecedented estimate puts the
average production cost at IA cents
a pound. Assuming, however, that
Is cents is the average cost Of turn
irg out a pound of copper from the
American mines, the margin of profit
is 515 cents. 1t is not surprising,
therefore, that little complaint has
been heard from the producers. Their
only ground for apprehension now is
that the government, in addition to
having fixed an arbitrary price, will,
by virtue Of the excess profits tax,
\ exact further tribute from the earn
ings.
The cost of producing copper has
risen sharply during the last year,
chiefly because of the heavier eX-
penditures for the labor account.
Figures Of 1916 production costs are,
therefore, Of little value when 1t
comes to figuring the margin of
profits. Besides, no two companies
arrive at their operating costs in the
same way. Nevertheless, it is inter
esting to note that last year the Utah
Copper Company, one of the largest
producers, luIutu OuI lIo NOPPSA az
cost of around cents pound. Ken
necott produced copper at a cost of
less than 51s cents, while Anaconda's
output was produced at not more
than ~ cents, and probably some
what less. Recent quarterly reports
show increases in costs from 1916
figures of 2 and 8 cents a pound in
many instances. The ten-year aver
age market selling price for copper
in New York is around 16& cents
pound. In the first eight months Of
this year the American producers re-
ceived on the average % cents
pound for their product.
As the season advances it becomes
apparent the gain in business usual
at this time of the year Is not yet
general or uniform. Rather less of 1t
is seen in the East than at other
-. L., sop,a p1aces none at all