New-York tribune., 1922-11-05
Profit Margir, Small

NV ~St4A~A iS~'t RASAASSA6t IL is
stressed, can produce copper for less
than 10ia to 12 cents pound, so that
the margin of profit on sales at IL
cents has been reduced to a minimum.
Within recent months wage advances
and bonus systems have beer put into
effect at the mines to SECURE an ade-
euate supply of labor, and theae factors
have served to increase costs to q level,
where several large companies assert
that they are operating at an actual
loss under present conditions in the in
dustry,
American producers Insist that cop
per quotations would Immediately jump
to profitable level II 1t were not for
the persistent influx from the South
American mines. In this connection it
mas been limited that the Guggenheims,
piqued because OF tie acquisition Of
one Of their former best customers, the
american Brass Company, by the Ana
conda Copper Company, have been fol-
owing policy of retaliation by keea-
ing the price of copper down to -
cents whether this has any founda-
tlon IN fact It is an interesting bit of
trade gossip.
One of the dominant figures in the
porphyry group OF copper companies
recently referred to the increase in the
capacity of the worlds copper mines,
compared with pre-war basis, as one
Of the chief determining factors in
holding down the price Of copper metyi
he said that the mines In this co, n
try, because of this condition, are run
ming at oply half their capacity and
we're efforts made to stimulate output
the probable effect would be still
further cut in prices.
This interest also stressed the fact
that operating costs are much gra-t-r
when the mines are running at the
present rate OF production than if they
were operating full.
In addition to the heavy imports Of
South American copper, South Africa
has ioomed up as another important
producing factor in the world copper
markets. AS indicating the possible
effect on home production, it is stated
that The Nichols Copper Company has
contracted to refine 100000, 900 pounds
OF South African copper next year.
Inc opening up Of new mines in
other countries will also have an i'm
pofssns bearing on the American ex-
port trade, which is normally depended
upon TO take about 80 per cent of the
e.opper produced in this country. BY
me recent imposition Of tariff Japan
.s ass aeen practically cut off as one of
nh,,s ny arrest buyers of American copper,
so. "".,s sns may loom up SIS an important
'OHipesiscr In the foreign markets.
Stocks Decline
S.ocks Of refined copper in the
. anileo States on November l were
oo,, oSoss'msted ma at from 25o,000,o00 to 3o0,-
ooo'ouo ooo pounds, compared with 4s2,000,-
WV pounds on January / last. This is
,acsien in the last ten months of
asout 2S2,Goo,000 pounds, and of the
present total above ground it is under
$1,000 that 145,000.00 pounds is allo-
ton. 00ppet AApois
Wv maen the small amount of copper
a,,s ayw IN the hands Of domestic and for
ssn consumers is taken into account,
tsssAer with the comparatively bare
ssa,s OF Jobbers' and retailers shelves
~ !ar as copper and brass goods are
oheerned, the surplus is regarded as
Is. 10 greater than normal. 1t is calou-
s..s that pre-war stocks of copper
ni.h the present rate of production
sa consumption would have been
around l25,oo0,000 pounds, with the
oeht OF copper in the hands of deal
~, Iaoricators and founders estimated
spout the same amount.
,sSans Saiss have been averaging around
.;soooo.o00 pounds month. Consump-
osnoS Vn abroad is now running at about
.pS,eoo,oo0 pounds monthly, of which
ssout $4,000. 600 pounds is coming from
@es produced elsewhere than in North
sss sao south America, while exports from
aas Ms united States amount to about co.
.ssooo pounds. This compares with
about $4,000 600 pounds a month ex-
Ported last year.
ne increase in the foreign consump-
w soa 81 American copper is attributed
-. SO much to the expansion in ulti-
Sale consumption abroad as to the ex-
,ason austen Of excessive supplies of scrap