New-York tribune., 1918-05-24

Whether or not price fixing is
econmically desirable is merely an
academic question now; we are COM
', mitted to it, and the fact must be
accepted even by those who regard
the governments policy in the mat
ter as q phase of economic insanity.
But in any event there Is no good
reason why the price-fxing pro-
gramme should be lacking in flexi-
bility, as it is. The trouble with
naming a single price, as 231a cents
pound for copper, is that it must
necessarily be an arbitrary price,
and therefore result in gross injus-
tice, and, what is more important,
in curtailment of production of a
commodity without an ample supply
of which our war programme would
be crippled. A price that allows alb
surdly high profits to one producer
may force another, with higher costs
of production, to suspend or reduce
operations, when all the time what
we really need is copper and more
copper, no matter how much it costs.
We are not getting it.
The output of seventeen leading
producers in April was substan-
TALLY smaller than the output in
March, in spite of the Improvement
in transportation and weather con-
ditions. 1t was even further below
the output in April, 1917. If the
production figures for all the copper
producers, large and small, were
available, they would probably dis
close proportionately greater loss
than the incomplete statistics cited.
Now, this loss was in part avoidable,
being to some extent the result of
shifting labor and shortage such as
is felt in every field of industrial
activity. But in an important de-
gree it was caused by fixing the
price for all producers at 23H cents.
With labor and other costs on the
present inflated basis some of the
smaller mines find that they cannot
operate proftably at the price
named; others, working on ores OF
varying grades, have been compelled
to abandon or reduce operations on
the ores of low copper content. The
aggregate loss resulting therefrom
is considerable.
Why, then, should not an adjust
ment be made on the basis of actual
production costs? 1t is not sufficient
to answer to this question with the
assertion that it is difficult to obtain
cost figures for individual proper
ties. Mining engineers of standing
assert that, on the contrary, it would
be a simple matter to do so with
reasonable accuracy and speed. 1t
is the only way in which fair treat
ment can be given to all producers,
while at the same time it would give
assurance Of all the copper that
could be produced under limitations
imposed by the labor supply.
The National Conduit and Gable
Company, one of the greatest of
copper consumers, asserts that vast
quantities of copper have been per-
sistently absorbed for many months,
i'll consequence of which the accu-
mutation of unsold stocks has been
seriously affected. "Immensity of
demand," the company continues, "is
revealed by the fact that during the
last three years the estimated do
mestic consumption of new copper
amounted to 3,878,872,3O3 pounds.
This is considerably more than the
aggregate production by United
States mines in 1913, 1914 and 1915
and is 771,876,643 pounds larger
than the total worlds production in
1915.
"These record breaking figures
may we'll serve as an object-lesson
of what may be expected in the fu-
ture. 1t is becoming more and more
a problem Of speeding up production,
so that it may keep pace with the
rapid development Of world wide
consumption. Those familiar with
the copper industry are imbued with
the conviction that the remarkable
developments in world events since
1915 call for marked increase in
production to meet the marvellous
expansion Of demand. If the out
put Is to be ample for all essential
and emergency needs, it is impera-
tive that American mines keen
working at top speed.