Salt Lake Tribune | 1918-11-29 | Page 10 | Copper Production is Exceeding Sales

COPPER PRODUGTIOIH -IS EXCEEDING SILES Big Companies Must Cut Costs to Maintain Ratio of Profits. Copper sliares in general reached their best prices this year shortly before peace rumors, started, says the Boston News Bureau. They have been groggy ever since. Declines have een accentuated by rumors of price cutting and accumulating accumu-lating supplies of the metal, both of which seem to have real basis In fact. While agreements have been reached with the war industries hoard fixing li6 cents as the "official"' price of copper up to January 1 it is perfectly apparent that this does not represent the figure at which large American manufacturers can be induced to enter the market for heavy purchases. It is obvious that prices of all commodities com-modities must come down and artificial supports placed under the price structure only defer they cannot prevent the Inevitable In-evitable recession. It would seem equally clear that manufacturers will continue to buy only for immediate requirements while such artificial conditions are allowed to continue. The reports of the Jackling porphyry companies for the three months ended September 30, just issued, make it clear that two months ago production was running run-ning ahead of sales, and this was evidently evi-dently before any of the wholesale cancellations can-cellations by the war department had occurred. In consequence, there has been a substantial accumulation of copper. Costs of production are at dizzy heights the result of a procession of wage advances ad-vances which seems to have no end. Freight increases, heavier smelting and refining tolls, taxes, high cost supplies are all piling ponderous burdens upon the copper producing industry. Unless, therefore, there is a lowering of production produc-tion costs to correspond with selling price recessions, the mining companies must face a contraction in Jiet profits. Fortunately, the mining companies during dur-ing the war period have been most discreet dis-creet in their distribution of "swollen profits." Anaconda, for instance, during 101 5. 191(1 and 1017. earned $49.04 per share, but paid out in dividends only 517.50. Likewise, Utah popper paid out but 58 per cent of its profits. Granhy 30 per cent. Inspiration 17 per cent. Isle Royale 4.3 per cent. This means that the working capital status of the mining'companles has been j greatly strengthened during the past three years, and that the producers, in , point of cash assets, are stronger than ; at any previous time in their history j unless" they find themselves compelled to charge off a big shrinkage in inventory.