Evening star., 1934-02-18
Coming Hearings Expected
to Clarity Figures on
Surplus.
SHARES MAY INDICATE
POSSIBILITIES OF WAR
Supply Of Metal Still More Than
Can Be Used in 16 Months
Despite Improvement.
BY JOHN A. CRoNE.

= . 4
Special Dispatch to The Star.
NEW YORK, February Hooper
now Is mirroring the optimism over
coming hearings on the N. r. A. code
and betterment In statistics.
The rise in copper stocks may be re-
fiecting trade factors or forecasting
q war. Veteran traders handling
ticker tapes filed with copper share
quotations say, "the market always
has to have copper roof" A bulge
In coppers spelled market disaster in
1929. Similar moves In 1914 and 1917
carried war warnings.
The copper code, public hearings
on which start in Washington Feb
ruary a, was submitted to the
N. r. A. by the United States Copper
Association, said to represent % per
cent Of the industry with "a per cent
Of the copper mine capacity Of the
country, after more than five months
of battles" by one of the most in
dividualistic Of material industries In
America.
The trade faced these facts: The
supply of copper is more than can
be used in 16 months at the 1888
rate OF consumption; demand in the
world Is increasing, but capable Of
being supplied by low-cost South
African producers, who can compete
with most world producers; and de-
mand in the United States is gaining
as general industry RECEIVERS.
Expansion Difficult.
The supply of and demand for
copper In this country at present
make it difficult to increase wages of
copper workers or increase the num-
ber of workers, through the opening
of more mines or quickening operating
rates, and at the same time COM
pete with domestic scrap metal or in
world markets.
Specifically, the code seeks: ITO
regulate copper production In the
United States with due regard to
consumptive demand, the liquidati1g
of surplus stocks and the necessity
Of maintaining employment In the in
dustry at the highest possible level.
70 withhold, In whole or In part, sur
plus stocks from the market during
the present emergency period. To
regulate, curtail and allot the volume
of current production In such man-
ner as shall be agreed upon by the
parties participating In such regula-
tion, curtailment or allotment To
provide plan involving q minimum
sales price with due regard to cost Of
production, and in connection there
with q plan for the regulation and
ALLEGATION Of sales"
Code discussions thus far have in
formed the trade of the individual
problems Of each company; empha-
sized price stability. which to date
has been the most serious single OBJ
stacle against wider copper use and at
times encouraged substitute metals;
and brought out the need fer concen-
trated efforts to extend copper con-
sumption.
Disagree on Surplus.
The hearings,are expected to reveal
the size of surplus stocks of copper In
this country. Experts disagree on how
much surplus stocks were reduced last
year.
Sam A. Lewisohn of Adolph Lew
isohn & Sons, Inc, wrote at the year
end, "the year 1888 is closing with
a reduction in total stocks by about
10000 short TONS" Several trade
papers estimated that stocks of re-
fined metal declined about 100000
tons last year." The United States
Bureau of Mines estimated smelter
and refined copper stocks we're of IL
per cent in 1893 at 1,213, 600. 900
pounds. a decrease of l69, ,000, 900 from
record stocks of 1882. A decline Of
Is per cent was registered In stocks
of refined copper at domestic refin-
cries In 1888, several brokerage sur
veyS report.
Estimates vary as to the rate Of
consumption thus far this year, and
accordingly the rate of decrease Of
stocks from the year end. Hence all
interested In copper supply and de-
mand hopefully look to the code hear
ings to throw additional light on
these problems.
DOWNRIGHT 19341