The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-07-18
METAL PROFITS REPORT
BY TRADE COMMISSION
NO UNUSUAL PROFIT IN ZINC
WITH ONE EXCEPTION
COPPER SITUATION.

Profits accruing to 81 copper pro-
ducing companies during 1917 ranged
us high as LOT per cent on the invest
ment involved and averaged 24.4 per
cent, according to federal trade
report to the United
States senate. says the Washington
Of the Engineering and
Mining Journal.
No unusual profits were made In the
zinc industry. with the exception OF
the New Jersey Zinc company The
Nickel company Is alb
solved Of the charge Of profiteering.
The Union Sulphur company and the
Freeport Sulphur company each took
advantage of the existing situation to
raise their prices" says the report.
The commissions reference to copper
follows in full:
VERY large earnings have been
made in the copper industry on the
whole, although 1t should be noted
that they have been due in part to an
unusually heavy demand for this met
III, which Is used almost exclusively
for war purposes, directly and indi-
rectly. The commissions figures show
that Fl companies, including a large
proportion Of high cost companies,
made profits in 1917 which ranged
from per cent to 1O7 per cent on
their Investments. The average pro-
fit was 24.4 per cent. Probably over
70 per cent of the production Is mar
keted at profits over 20 per cent on
investment. These same companies
show an average profit Of only III
per cent in 1918, which may be con-
sidered to be normal year. Thus
the average Of profits in 1913 was
from 1 to Sc per cent
'"The profits used in these compu-
tations do not include federal income
or excess profits taxes, and. therefore,
represent sums actually retained by
the companies for addition to surplus
or dividends.
There does not appear on the
whole to have been any concerted ac-
ton in this industry in putting prices
up in the first instance. The war
scramble among the allies shot the
prices Of copper and other metals to
almost unheard of levels. But there
are certain strong interests among the
producers and marketers which pre-
dominate in certain stages Of produc-
ton, and these appear to have taken
steps to maintain prices at unneces.
sariy high levels. In the first place
the smelters and notably the Ameri.
can Smelling and Refining company
have continued to hold In force certain
deductions for risk of carrying copper
bought from mines, which risks have
ceased to exist These deduction!
were put In force during the early
reriod of the war. before the pric,
vas fixed by agreement with the wal
industries board.
Their present maintenance nov
amounts to profteering at the xepens,
of the miners. especially the snal
producers. On the other hand. som,
Of the larger and richer mines hay,
contracts entered into before the wal
running for periods as long as 2,
years. which are extremely advantag
eous to them and which are now caus
Ing some refneries to operate at i,
less"
With regard to zinc. the report says
Most Of the evidence in the com
missions possession indicates no un
usual profits in the zinc industry will
the exception of the operations of tn
New Jersey Zinc company Basinl
percentage on the capital stock issu
Of s35,00O,O00. the following net earn
ings and dividends are shown for tn
, New Jersey Zinc company, accordin,
to published statistics: 1915, profits
72.6 per cent. dividends rs per cent
, 1917, profits Sc per cent, dividends 4
, per cent The federal trade commits
sion's figures as to these same ne
earnings and dividends are availabl
only for 1916, and indicate profits O
|, sb.s per cent. with dividends of rs pc
cent.
These large earnings do not indi
cate excessive profits on metallic zinc
The company's profits on commo,
spelter are very low, and on grade 4
spelter. while high, are due to tn
|, fact that 1t possesses a natural mon
opoly OF certain high grade ore, tn
product Of which can not sell for les
than the zinc produced by competit
ors. In fact the whole explanation o
the New Jersey Zinc company's larg
profits lies in Its possession of an or
body Of unusual richness and purity
The operations of the Internationa
Nickel company are commented on a
follows:
THE dominating factor in the nicke
|. Industry Is the International Nicke
company. which produces PRACTICAL,
the entire output Of that metal In THU
country. The proflts M tho J,taroo