Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-07-12
BIC COPPER FIRMS
|! TALKING MERGERS
Market Conditions and Plans
to Cut Costs May Cause
Great Changes.
BY j. G. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 12.-As a result
of the present condition of the mar
ket for copper, mergers Of mining
properties now are understood to be
| under consideration. which may in
volve more than % per cent Of the
entire yearly production Of the United
States and South America
Copper inquiry has been much
more active this week, but the con-
tinued low prices have failed to slim
ulate buying although consumption
is heavy, and third and fourth quar-
ter requirments of manufacturers re-
main to be filled. Buyers are hang
ing off in the hope of securing still
| more advantageous terms.
Many Merger Rumors.
This condition has given rise to
numerous rumors Of tremendous con-
solicitations. 1t is known that one
of the largest financial institutions
| in New York, is working on details
of a merger which involves many of
the large producers of the southwest.
The Phelps-Dodge mines CHINO. Ray
Consolidated; Nevada Consolidated ,;.
Hecla, and Inspiration have been
mentioned as possible parties to this
| merger.
1t is possible that all the proper
ties might be included in such d plan,
but it is probable that too many
! have been named possible partic-
| ipants. Copper authorities both here
| and in Boston. Denver and Salt Lake
City are inclined to doubt whether
| so large a consolidation is feasible or
advisable, although they admit that
a third big combination might tend
TO regulate production and stabilize
| the market
They feel, however. that the COM
panies mentioned are SO radically
! different in personnel, type of organ
fzation and mining methods. and so
! widely scattered that advantageous
| results would not come from their
Saving in cost of production would
be limited largely to administration
| expenses which are relatively unim-
portant items. Moreover. different
kinds of copper ore are produced in
the mines in question. The Lake Su-
perior copper is found largely in its
native state. Many of the Arizona
mines produce copper sulphides,
| while the remainder of the proposed
group Is composed Of the porphyry
| properties.
! Widely different financial interests
would have to be brought together.
! The Cole interests which are back
of Calumet and Arizona are compel
itors of Calumet and Hecla in Mich
igan. The Anaconda group already
| owns a substantial interest in the
! Inspiration and Greene Cananea COM
panies which it IS doubtful If they
| would wish to release to a new COM
bination. Nevada Consolidated. Ray
and Chino are controlled by the So
called Hayden-S Stone interests, which
are already committed to the Utah
Copper ennecott combination. The
amalgamation of these interlocking
interests is always possible but not
! probable.
What Merger Would Mean.
| If, however. such a merger as men,
| toned were to materialize it would
| ductive capacity of about 865.000,o00
| pounds of copper a year. This COM
| pares with about 525,0o0,ooo pounds
| produced by the Anaconda Chile
group and 514.oOOOOo pounds by the
| Utah Kennecott-B raden group. 1t
! would mean that about so per cent of
| the copper production of the United
| States and South America would be
| controlled by three concerns instead
| of being split among numerous
smaller producers.
/ The rumored merger. however. Of
| fers no opportunity to keep the South
! American output, which is produced
much more cheaply than that of local
mines. off the world market
Copper men believe that merger
! of the Phelps Dodge and the Hayden
stone interests, 1nCluQlnS inspiration,
Ray, Chino and Nevada Consolidated.
| stands far greater chance of success.
Electrical Trade Booming.
The trade in electrical goods Is
booming, however, and 1928 bids fair
to be a banner year for manufacturers
who use copper so extensively in their
products. General Electric is running
at an annual rate of about S36O,000.-
900 a year. Western Electric Is more
active than at any time in its history,
and Westinghouse bookings from
April ! to July l totaled over S47,-
500, 900 No severe falling off in bust
ness is expected during the remainder
Of this year. About 100000. 900 will
be spent this year in electric power
line extensions and the surplus stocks
Of copper are down now to where they
would not cover two months require
ments Of consumers.
S2,OOO,OOO Electric Line Planned.
HOUSTON, July IL (SpeciaD.-Con-
struction of the Seaboard Electric
Railway Company's lines to Seabrook.
on Galveston bay, which will serve
industries along the ship canal and
1, it was announced today. The COM
pany has been capitalized for S2,000,-
900.
VIII Build Costly Hotel.
SAN FRANCISCO, July IL Especially.
Financial arrangements have just
been concluded which will assure
new s2,OO0,000 hotel to Sacramento,
to be known as the Hotel Senator.
! The project will be backed by San
Francisco and San Joaquin valley
business men.
Worry Over Business Outlook.
ST. PAUL. July IL Especially
Wholesalers and jobbers here report
that country merchants are buying
conservatively and in small lots and
the fall business outlook still fS
dubious Prospects will improve with
a good harvest and crop conditions
are excellent over the northwest, ex-
cept in small isolated areas hit by
hail or grasshoppers. Collections are
better than year ago.
,luIoI rcnc DIVINE MIL