Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-16
LAW BANS EFFORT
TO CURTA|L COPPER
Producers Prohibited From
Making Agreement by Anti
Trust Legislation.
BY JOHN L. COOLEY.


NEW YORK. September 1e.-A rise
in unsold stocks of refined copper for
five successive months has revived the
question of what the industry can or
may do to help itself out Of these hard
times.
There has been some unoficial talk
here of further conferences for the pur-
pose of discussing curtailment plans, but
so far as is known nothing definite has
been decided However, the expected
arrival next month Of M. Pisart, rep
resenting the Belgian copper interests,
who presumably will discuss the situa-
ton with American executives, gives rise
to speculation as to whether an agree
ment will be possible.
Antitrust Law.
Admittedly, one of the stumbling
blocks in the way Of hating overpro-
duction is the ANTITRUST law, legal
barrier which, In the opinion of some
observers, has hindered the economic
solution of other problems. 1t might
be difficult, also, 1t Is pointed out, 20
get all producers-American, Canadian
and Belgian--to agree to a restriction
plan. ~
Early this Summer steps were taken
by leading interests to revive the cur
tailment question. Conversations were
understood to have been progressing
favorably when. announcement Of the
Hoover debt MORATORIUM gave All com
modify prices a lift. Feeling that the
worst might well be over, the producers
dropped negotiations, only to and, with
the rest of the world, that the halt in
the major defiationary movement was
only temporary. Domestic copper
dropped back to 71z cents pound, its
present level, and many. companies again
were faced with the old DOGGY of pro-
ducing at a loss.
Perhaps the deepest shadow in the
current gloom, however, is the status
Of Africa as low-cost source of copper.
A few years ago there was little con-
Germ over the red metal in the heart of
the Dark Continent. But in 1880, when
the North American industry was strug-
Cling unsuccessfully against the drastic
break in prices. African copper became
much more of a threat. This year,
completion of the Bengue1a Railway ex-
tension to the Kongo ore district, thus
giving a connection from mines to the
portant possibilities.
1t is estimated that the production
cost OF African copper, partly because
Of cheap labor, is about cents a pound.
Western Hemisphere companies, on the
other hand, according to metal and
mining markets. spent from 5.S0 cents
to 23.07 cents pound last year to get
out their commodity. To the figure for
Africa must be added other charges, in
Guiding transportation, which bring the
delivery cost to the United States or
England to about cents, or still below
the average American cost Of operations
only.
Competition.
Notwithstanding the threat Of AZ
rican competition, copper men would be
much more cheerful were demand to
pick up Experience has shown that in
normal times world consumption of the
metal has increased per cent annually.
This has been IN the face of occasional
shiftings in the sources Of supply, such
as the opening of South American mines
after low-grade ores in the United
States had been developed.
Copper, unlike many other commodi-
ties, is virtually imperishable, which
means that replacement demand is
small. The expansion Of it's uses, not
ably the rapid extension of telephone
and telegraph systems in the last decade,
doubtless has brought nearer the point
at which the old standard of normal
gain must be revised.