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Show EASTERN VIEW OP THE COPPER MARKET After remarking upon the appearances and bo forth that compel him to the belief be-lief that the big copper Interests had settled set-tled upon 2J5-cent copper, here Is the way an Eastern writer sums up tho copper cop-per situation: The large producers of copper are figuring fig-uring upon a heavy shrinkage in the country's output this year, which may servo to stimulate the situation. In one quarter It Is estimated there will be a reduction of from 5 to 10 per cent In the production of copper in this country In tho current year. A decrease of 5 per cent would menu nn output of less than 860,000,000 poundF, and a decrease of 10 per cent an output of less than 810,-000,000 810,-000,000 pounds, thus bringing the production produc-tion down to practically what it was in 1904, when 813,000.000 pounds wa3 reported. re-ported. These calculations are bnsed on government figures. Since the first of the year production in tho Butte districts dis-tricts has shown a falling off of something some-thing like 10,000,000 pounds, compared with the corresponding period of last year, and from present Indications there will be no Improvement during the remainder re-mainder of the year. Similar conditions exist In other Western copper mining camps. Thero are many factors that will contribute toward a shrinkage in copper production, the principal one of which 1b transportation. All (he Western companlos, particularly those In the Butte district, are experiencing experi-encing the greatest difficulty in sectirlng adequate coal supplies, due to the congested con-gested conditions of the railroads. The Butte mines are practically out of coal, and with the sugar beot crop moving, very little coal Is being shipped to the mines. Thero Is every promise of a repetition repe-tition of the fuel shortage which existed earlier in the year. Labor conditions have also contributed toward reducing output, and tho outlook for a change for the better In this respect Is very gloomy. Lower prices for copper will also servo to cut down production, ns there are many small mines that cannot even operate oper-ate profitably upon present prices for the metal. As Is well known, high copper prices invariably stimulate production, and as a result of tho sharp upward movomont In copper every mine that Is worth working has been contributing to the country's supplies. Tho policy of the large companies to work their low-grade orc3 In preference to high-grade ores' on a rising market has also kept down nroducllon. Large producers of copper admit that stocks have been accumulating ns a result re-sult of tho hesitancy of buyers, hut they nolnt out that this Increase has been largely offset by the reduction In stocks In consumers' hands. In other words, producers are now holding the stocks Instead of consumers. It Is generally gen-erally known that a higher cost of raw material, higher transportation rates and higher wages have Increased tho cost of producing copper materially. The Increase In-crease In copper production last year, according to the government's figures, was In the neighborhood of 2 per cent, the smallest Increase In years past. It Is estimated that the various smelting smelt-ing companlos operating in this country, coun-try, particularly those doing a large percentage per-centage of custom work, have lost about $5,000,000 in tho recent rapid declines 1 of copper from 25 cents to 18 cents a ! pound. Most smelters are obliged to keep soveral million pounds of ore on hand constantly, irrespective of the outlook out-look of tho metal market. As settlements settle-ments with the ore producer arc made at the market rate prevailing, twenty-four twenty-four hours after tho sampling is com- I pleted a rapid decline In the price of the metal leaves the smelting companies which handle custom ore In a position , of being unable to obtain for their smelted prdouct what they wore obliged I to pay to the producer. In an ordinary fiK declining market, the Bmeltlng compn- Tm nles arc able to protect themselves In a. fH measure by demanding .1 discount, owing lB7 to the unsettled conditions of tho mar- Mm' ket. When the decline Is rapid thoro Is Ml no other alternative left to them except WML to foot the loos. BJk |