Bisbee daily review., 1917-11-18
KennecOtt Mines
Increase Output
But Stock Falls

Most copper stocks have suffered
ing the past several weeks. Kennecott
being no exception 10 the general rule,
declining from above 80 earlier in the
year to around 26. There was some
talk that the Kennecott might find 1t
necessary to reduce its Sc per share
dividend now being paid On its out
standing stock because of the large
amount of money that must necessar-
lily be paid to the government in taxes
From authoritative sources, however,
it is learned that the company has a
sufficient amount of cash on hand, ev-
en- after making a liberal allowance for
the government outlay. to considerably
more than meet its dividend obliga-
ton without in any way altering the
current rate.
1t was suggested that perhaps the
action of the government as regards
prices for copper at the first of the
year when the present schedules ous-
lined by the government expire may
have an important bearing OH this
phase of the situation. There exists
a diversity of opinion as to the price
that the government will regard as es-
sential at that time although some
careful observers strongly maintain
that it will be higher.
1t was argued that this would be
the most logical sep to be expected
because of the higher wages now be-
ing paid and also any increase in earn
ings will mean a larger income return
Or the government in the form of tax
es. The Kennecott has always been
recognized as low cost producing
property but because of the increased
cost of all classes of materials, higher
wages, ETC., its production outlay have
been swollen materially.
The directors of the Kennecott do
not meet to take action on the divi-
dend for about four weeks and it was
pointed out today that so much can
happen in the meantime either OF a
beneficial or adverse character as TO
render any kind of prediction as to
he action of the board out of the Ques-
ton. The general belief in well in
formed circles is that no change will
be made in the rate.
Both the Alaska and South Ameri-
can mines of the Kennecott Copper
Corporation in October showed an in
crease in output over the previous
months as far back as May for Alas
kan mines and July for the Braden. II
was learned today that from this time
on, there will be a substantial increase
in the output by the Braden mine as
the company's facilities for handling
the raw product are about to be in
creased from $500 tons a day to 5000.
Later on this capacity will also be in
creased from time to time by liberal
amount.
Officials of the company estimate
that the BIaden's output will be from
25 to 300 greater beginning with the
current month than it mas been thus
far this year. This would indicate a
monthly output OF something like Il
100000 pounds monthly. III is not eX-
pected that there Will be any material
change in the output figures by the
Kennecott mines proper in Alaska. the
current production being about on
parity with the average monthly out
put thus far in the current calendar
gear, save the strike period-June,
July-when there was considerable
falling off.
During the first ten months of the
present year the Kennecitt Copper
produced 116,694,0000 lbs.
OF copper from its mines in Alaska and
South America. OF this total $685.
600 lbs. were produced in the Alaska
mine and 50,36S.000 lbs. from the Bra
den mines in South America.