New-York tribune., 1921-01-23

the records of some OF our great low
grade porphyry coppers and the re-
suits of improvements in the metal
lurgy Of copper during the last ten
years, the modification up to the be-
ginning of hostilities would probably
not have been large, but at this time
an upward revision of perhaps SO to
IS per cent is evidently necessary.
Present costs, based, as they are. on q
price for copper, are much higher than
ten years ago.
"To meet the acuteress of the situa-
tior producers have taken q logical
step. They have begun to curtail their
output and to lower their costs through
readjustment of the elements that
enter into the cost of production
chiefly labor. Greene Cananea an
nounced it would suspend operations in
definitely on December is; North Butte
has dropped production two-thirds,
or from 1,5O00 900 to 100000 pounds
monthly, and other announcements are
MON mentarilye expsetets The desire has
been more to decreace wages than to
ton. The Copper Range Mining Com
pany in Michigan has reduced wages
s.bout II per cent, but the reduction is
lightly compensated by concessions in
the price of fuel to employees. The
American Smelling and Refining Com
pany has reduced wages so cents day
at its Tacoma plant and is considering
similar action at the East Helena
smelter. The Quincy Mining Company.
Il Michigan, also has made a reduction
of is per cent in wages. Calumet and
Hecla has already made wage cut. The
Lake Superior copper mines have no
an, cofi liza ,,oy,
would help to lower production costs,
IS in the Butte district, and are rela-
lively high-cost producers. 1t was but
natural that they should first feel the
pinch Of low copper prices.
Although labor is one of the items
that is amenable to reduction, trans
portation charges, which have been
greatly increased during the last year
admit Of only an indirect decrease. Not
only have the increased freight rates
added to the marketing cost of copper,
but to considerable extent to other
items of production cost, as the prices
Of mine supplies also reflect the in
creased rail rates. A successful at
tempt has been made by Western COM
panies to ship their product by rail to
Pacific Coast ports and then by boat
via the Panama Canal to Eastern ports.
cooperating companies are naturally
reluctant to abandon operations en-
tirely, and it is largely a question of
what entails the greater costa COM
plete shutdown, partly curtailed opera
tions or production at rate which pro-
duces copper at the cheapest figure, but
which, nevertheless, necessitates mar
ketng copper at certain loss a
pound. 1t is no easy matter to decide
exactly what procedure is best suited
for the individual mine, particularly as
the future price of copper is uncer-
tain. Judging from the announcements
of many important companies and
partly referred to above, the copper
producers in general prefer to decrease
their costs by reductions in wages and
other items rather than by drastic cur
railment. This is not all to be desired
as neither domestic nor export business
ls upon a scale which BODIES we'll for
the industry, whereas production is
still above the pre-war rate. In fac,
an estimate OF October production
shows rate slightly higher than that
OF September.