New-York tribune., 1918-04-10
Price Fixing Cut
Copper Output of
Phelps-Dodge
Labor Troubles Also Held
Down Production; Sur
plus Declines

Labor troubles, loss Of workers
through the draft and the fixing of an
arbitrary price by the government
tended to reduce the output of copper
of the Phelps Dodge Corporation in
the closing months of 1917, according
to the annual report issued yesterday.
Nevertheless, owing to capacity oper-
alton in the early part of the year,
production of copper for the full twelve
months amounted to l53 ,97A ,692 pounds,
compared with 152,263,729 in 1916. Out
Of 0,522,569 pounds of copper sold
during 1917, part Of which was re-
ccivcd from other sources, 1S5,131 ,S9l
pounds were taken for domestic account
and the remaining 05,39O,67S pounds
were exported.
The surplus income after operating
expenses and deductions for taxes
amounted to Sl6.94O,379, equal to s3764
a share, against s21,974,263. or s4s.333
a share in 1916. The average price Of
copper sold IN 1917 was 2667 cents a
pound.
Hampcred by !. w. w.
Walter Douglas, president of the
company says in his remarks to the
stockholders that during the first half
OF the year production was maintained
at a maximum, but in the later months
labor troubles, fomentcd to large ex-
tent by the I. w. W.. seriously curtailcd
ore output in the case of the Copper
Queen branch and caused complete sus-
pension of operations for period of
four months at the Morenci branch.
In September the government fixed
the price of copper at 2312 cents, and
owing to greatly increased production
costs, due to the high cost Of labor and
supplies and the seriously decreased
efficiency of labor, this lower price
caused a certain reduction of output
because of the inability to work profit
ably low grade ore which previously
had allowed small margin of profit
The several properties in addition to
the copper produced yielded s.l36,356
pounds of lead, against 10,404341 in
1916; 1.524 .632 ounces Of silver, against
1,642,0 ,055 the year before, and "a ,423
ounces of gold, against 28,S73 in 1916
In addition there was purchased or
smelted on toll at the reduction works
ores yielding 5l907 ,525 pounds of cop
per. 946,921 ounces OF silver and 1O,957
ounces of gold
Draft Also Hurt
Douglas, "thc demand for copper
nyraoIoN tha bo
fluctuations in the price between the
maximum of 33& cents per pound in
the early part of the year and the % 12
cents during the last third. are indica-
tive of the market conditions and the
uncertainty of trade. The copper pro-
duction derived from the mines of the
Copper Queen branch. after reaching
record production the first six months,
showed marked decrease in the latter
831 ,317 pounds of copper, compared
with 95,397,219 pounds for 1916. This
result was largely due to the labor
troubles and the loss of skilled miners
through the operations of the selec-
tive draft"
The Moctezuma Copper Company,
the subsidiary operating in Sonora,
Mexico, was enabled through more
satisfactory political conditions in that
SCato 10 redcn itS hlBhcSC output on
record; and although the cost Of pro-
ducing copper from this property great
ly increased on account of the heavy
Mexican state and federal taxes, the
higher price paid for supplies and labor,
the report says, the financial outcome
of the operations was satisfactory.
Little Development Work
The normal development work look
ing to the exploration of new ore bear
ing areas was not carried out last year,
owing to the general labor shortage,
although the known ore reserves of the
company were materially increased in
all of the mines.
The balance sheet, as of December
81. shows mines and claims carried at
S179,630,651, compared with $26, 1873,
the increase being due to the reor-
ganization Of the company early in 1917.
State and government taxes last year
were $5,857 595. Cash and marketable
securities on hand at the close of the
year were valued Mt $l3,775,628, COM
pared with $10,S0S,552 in 1916.