Mohave County miner and our mineral wealth., 1920-11-13
DOWELL DECLARES CRISIS IN COPPER INDUSTRY IS
 ONLY TEMPORARY ONE

CllSlS III llle COillCl liNtuSIiN iS oilN temporary, according to G. H. Dowell, general manager of the Copper Queen branch of the Phelps Dodge corpora tion, who was the principal speaker at the Douglas luncheon club recently.
 Mir. Dowell discounted any rumOrs that the Copper Queen was to close its shelter here and said that when conditions changed for the better, which he hoped would be soon, the company contemplated spending be- tween three and four million dollars on it's reduction works here.
 Facts-Not Theories
 Relating facts, and discarding all theories, MT. Dowell went, into the copper situation thoroughly. He told how that at the beginning of the war the government appealed to metal producers to speed up production. When the armistice was signed con- tracts, both of the government and ammunition makers, were cancelled and it took several months for pro ducers to find just exactly where they stood. Following this, with produc- tion continuing, but orders decreasing, millions of pounds of metal began to pile up, until at the beginning of this year producers found themselves with 940,000,000 pounds of copper on hand.
 Copper Crisis Only Temporary
 With copper selling in New York at about 15 cents, and the cost of pro duction being about F or IS cents producers naturally held back their stocks, Mir. Dowell said. This had brought financial problems, necesSi- tating the borrowing of huge sums, until at the present time the banks have just about reached the end of their credit and liquidation must set in.
 "The situation is critical 1 cannot predict what the outcome will be. But the crisis in the copper market iS only temporary" the speaker declar- ed.
 Large Copper Holding
 The Copper Queen at this time has on hand over seven months pro- duction, which aggregates about 35,- 0O0,O00 pounds of metal. Wages and supplies have been high and it has cost about IS cents per pound to pro- duce the copper" he continued. "Nat- urally stocks have been held in the hope that the market would improve and during this time production has continued despite curtailment.
 "The present prices of copper in my mind, are and have been artificial. They have not been governed by the law of supply and demand. However immediate prospects for improve ments are not bright.
 Heavy Expenditures Recited
 Mir. Dowell also told of the huge expenditures his company is making which includes $3,OOO,OOO on a con centrator at Bisbee and $5,OO0,00O on steam shovel operations on Sacra- mento Hill.
 He said that although half of the force on stripping operations at Bis bee had been layed off, he did not an ticipate further reductions of that sort.
 He said it was impossible to close down, but that operations must be curtailed to minimum-probably less than 50 per cent normal. The process of liquidation, he declared, is about to set in, and declared that he would not predict where it would end. However, with the present cost of supplies and wages, the speaker said, it would be impossible for companies to operate at a profit.
 Construction to Continue
 Despite conditions, the company will continue construction of the mill at Bisbee, he said. Nor will the shelter close here, as the company cannot afford such a direct loss, he stated.
 "This is a temporary condition and it must be met and made the best of. Any reductions that are made at the llllic CtiliiOI Dt lelhSh eto pSlllldLSul. Our underground Cor limestone) mine is in good, if not better condition than ever before and if necessary ac- tual production of ore could begin.
 Economy must be our watchword in state, county and city as we'll as individual effort.
 "Some of your merchants tell me that they are not selling as many silk shirts as they did a year ago. They also tell me there are fewer women who purchase $150 gowns. This, to me, is encouraging. People are realizing they must get back to the old basis of living.
 Conditions in Mexico are also en- couraging. When peace is establish ed and capital goes into the southern republic to develop it's vast resources Douglas, situated as it is on the bor- der, is bound to derive a great benefit from it."
 MT. Dowell said he knew the discus sion of the copper situation might be discOuraging, but that business should