Arizona republican., 1918-01-27
HEMINES OFARIZONA

through the personal efforts of con- mitteemen in the different mining districts of the state with realization of the requirement. for accuracy and the necessity for gathering the facts relative to the small producers as well as the large in order that there might be information at Washington which would make it plain there that while in theory a lower price for the metal might stimulate production among the larger producers, in prac- tice it could not work that way at all. The exact opposite result must attend for the reason that the big producers can no more make profit from low grade ores on a low metal price market than can the little producers. and if they cannot use the low grade ores they can not get out the quantity of copper, for the available high grade ores are limited in extent in all mines.
 Cost of Production
 DOUGLAS, Ariz., Dec. 22. - Costs attending the mining and smelting of copper ore have increased about two cents the pound over the state since the price of copper was fixed at 231s cents In September. Where ore is concentrated before going to the shelter, the increase in cost has been still greater. The advance in fuel has been a main item in the creation of the higher cost of copper production. Advances have also occurred in other supplies. The higher cost of fuel. and the prospect that it will advance still more, however, is the main cause Of present concern. In some camps they have turned to cutting wood
 Adding two cents to copper cost on O6 adding 21a cents for freight and cleo trolytic charges before the copper is put on the market in New York, re- uuces the price actually being re- celved for the output of the Arizona smelters to IS cents. War taxes are yet to be added to cost and will range from cents the pound for some com panies to F cents the pound for others. Accepting the minimum of cents, copper will be put on the market In New York for actually 15 cents instead of E312 cents. Because of higher wages and higher cost of all supplies, 15 cents the pound for cop- per is less than F cents represented in 1914.
 These approximate figures are based upon returns recently made to the Arizona Chapter A. M. C. from all over the state. They apply equally 10 copper producers throughout the west, those of some of the other states being indeed under more of a burden of costs than Arizona. As applied to the small producer, the leaser and the little operator, their burden is, of course, much greater. The small producers have heavy costs in all in- stances for transportation, both of ore and supplies, Vhich are minimized by the big producers with their own railroad facilities direct to mine and plants. The small producer also has charges for ore reduction to meet which must be based on allowance of fair profit for the work. For electrolytic treatment in the east and freight to the New York market. he pays the same as the large producer. and adds, as the large producer does, the commission for marketing his metal. So the small producer, as a matter of fact, must have a consider ably higher return from his ore than the large producer or he cannot DOS sibly get by. He gets the higher re- turn by mining high grade ore. When he is depleted of that, he is through. His only salvation is in a price for the metal that will enable him to lower the average value of his ship ments.