Evening star., 1928-12-20
HIGH COPPER PRICE
AFFECTS INDUSTRY
Electric Current, Auto, Radio
and Other Trades Are
Interested.
BY J. C. ROYLE.

Special Dispatch to The Star.
NEW YORK, December 2o.-Boom
days have come to the copper camps.
Figures made public today show that
more copper was shipped from the Lake
Superior region in the last month than
in any similar period since 1917, the
total being 24,008,000 pounds of the red
metal. The Calumet & Hecla alone ac-
counted for over 100000 pounds.
Similar conditions prevailed in the
camps of Utah, Nevada, Arizona, Cali
fornia, Alaska and a half dozen other
Western States, to say nothing OF the
mines of Mexico and South America
The reason has been that copper was
at 16 cents pound.
Newspaper readers in non-mining
sections turned on their electric lights,
picked up the evening paper and noted
the price of copper with yawn. They
might not have been so bored If they
had stopped to realize that the cost of
the reading lamp over the sheet In their
hands was being materially affected by
that same news.
Electrical Industry.
The electrical industry has had a
great year, So have the electric light
and power companies, but these great
consumers of copper had their year
based on 1ow-priced copper, since 1t
was not until Fall that the price adj
vanced. Gen. Otto H. Falk, head of
one Of the great electrical equipment
producers, says this progress has been
possible only through the concentra-
ton of power production in huge CEN
trail stations and the tying Of these sta
tions together in interconnected and
SuperpoWer chains. Thus the cost of
power rests less on the cost OF fuel and
the expense Of producing current than
on the transmission and distribution
Of current.
A leading engineer Of one Of the
greatest public utility companies point
ed out today that with 16-cent copper
the lines which at the beginning Of
the year cost the utility companies IA
cents a pound for the copper wire
now cost 10 cents. That scent differ
ence means the addition Of millions Of
capital expenditures in every new line
and every new expansion of the power
industry so long as the price Is main
tanned at its present level.
The technical position Of copper war
rants the price. Shipments are being
made as rapidly as possible from the
mining districts and production now n
being sold so to 80 days ahead. This
indicates to the copper industry period
of months, If not years, of prosperity
ahead. The cooler minds say months
not years. Producers in many instances
are predicting 17-cent copper and there
is some talk of 20 cent.
Power Prices.
Electric power is sold on the closest
possible margin. It's price has advanced
less relatively than any other necessity
since 1914. But its expansion cannot
continue and its rates cannot be main
tanned If all requirements and additions
are on the higher cost basis. There are
two inferences to be drawn from this
either there must be a reduction in
costs in some other department or pow
er rates must advance until copper
rates come down.
Then, too, much copper now Is being
absorbed in new uses. The officiating
industry absorbs more than 100000
pounds q year. The automobile indus
try accounts for 228,00O,O00, and radio
for 30,000,000. Electric refrigeration ac-
counts for. 35,000,000. Production of
copper in the Lake Superior region
cannot be greatly expanded owing to
shortage Of skilled labor, but the South
American, Arizona, Utah and Nevada
and Montana properties are capable of
greatly increased production. Sooner or
later this output will stabilize prices.
In the meantime, communication and
power lines built of high-priced copper
will have to produce revenue sufficient
to absorb the copper cost, even II the
consumers have to pay for 1t.