New Britain herald., 1926-12-29
COPPER MARKET
 CONTROL PLANS
Seek to Align Production and
 Consumption

New York, Dec. 29 R-A world wide export association, recently formed to control the marketing of copper has started to function as part of an ambitious project to bring the consumption of the red metal into closer alignment with production, valued annually at near iy $500. 100000.
 Under the plan formulated by the new Copper Exporters, Incorporated American methods of direct selling will be extended to the interna- tional markets in an effort to in- crease trade, stabilize prices abroad and combat harmful speculation.
 For many years attempts to cul- tivate world trade in copper have been thwarted by demoralizing price changes caused by factors other than supply and demand. The price Of copper in many foreign markets has been dominated largely by the action of spectators without any financial interest in the production of the metal. The agreement of pro- ducers controlling approximately 90 per cent of the copper supply to deal directly with foreign consum- CTS, in line with the simplified policy is now expected to eliminate this troublesome speculative element.
 New York city is the center of the copper market in the United States and 1t is here that contracts asgregating several hundred million dollars are made each year through a dozen or more sales agencies for the distribution of the metal from the producers to the largest consum CTS.
 The leading selling agencies, handling the output of mines in all sections of the United States. South America and other producing cen- ters. incude Guggenheim Bros., American Metal Company, Metal Sales Corporation, Phelps Dodge Corporation. Chile Exploration Com- pany. Nichols Copper Company, American Smelling G5 Refining Con- pany, Calumet & Hecla Company, U. S. Smelling, Refining & Mining Company, Adolph Iewisohn & Sons, Copper Range Company. Mohawk Mining Company, Quincy Mining Company and International Metals and Minerals Corporation.
 Virtually the entire output of American copper refineries is sold through these agencies. which are all located within a half mile radius In down town New York. Some of the large copper buyers, such as the big electrical manufacturing companies, maintain purchasing agencies in the same district. The bulk of the great volume of business Is transacted by telephone and telegraph, and this is made possible because of the relative stability of the market in which daily variations are normally limited to a fraction of a cent a pound.
 Copper normally is sold for ship mcnt in from one to three months, thus allowing producers to govern their output in accordance with the orders on their books so far as pos sible. At present, surplus stocks or refined copper, exceeding 140,QOO,- GOO pounds, make possible immedi- ate shipments, but frequently these are not available. Quotations ordl- narily are made on delivered basis.
 Notwithstanding the narrow price fluctuations. the copper market Tn the United States is regarded as com- netitive. with values governed strict ly by supply and demand. Attempts to maintain an artificial price level have always resulted in failure. Many years ago an organization known as the Secretan syndicate tried to bolster prices by withhold ing copper from the market. Buyers hold of as supplies increased, and eventually the syndicate was forced 10 dissolve with prices breaking pre- eipitately as the accumulated stocks were dumped on the market.
 In 1907 a similar attempt to hold up prices turned out disastrously and as late as 1920 producers, accustom- cd to inflated war values. attempted to hold the price around the Is cent level. Price cutting by low-cost pro- s>eA~.ea.AE.AoAAAAess~o