Salt Lake Telegram | 1931-09-25 | Page 20 | Plight of Pound Reacts on Copper

PLIGHT OF POUND RE UN COPPER Wage and Dividend Cuts Cuts' Caused by State of Red Metal Market By DONALD C. C BOLLES NEW YORK Sept 25 P The F The copper copper cop cop- per market was stagnant today as asboth asboth asboth both bu buyers ers and producers watched the gyrations of the British pound and leading companies strove to curt curtail curtail cur cur- t tail the cost of operations through wage cuts culs and considered further reduction reduction re re- re in production With copper idling lUng in the domestic market at nt a n figure less than the cost of mining It producers have left lell the field to customs smelters melters to satisfy what little demand exists both home and abroad The temporary divorce of the British pound from the free gold st standard has complicated the situation in m the red metal industry involving as it does the export market in hi which American Americ n concerns are a large factor The depreciated of or sterling in terms of ot American dollars dol do- lars has naturally lessened the tile buying power of potential copper consumers abroad Inquiry in iq the copper industry following following fol fol- fol lowing the wage reductions initiated by the leading steel corporations of ot the nation indicates that this same method of ot re reducing operating expenses ex has been widely resorted to toby toby toby by copper companies Furthermore prominent company executives have predicted that with the market suffering from a huge supply of ot stocks prices may fall below below below be be- low 7 cents and further curtailment of oC production already at low ebb probably will be necessary before any degree of oC stability may be expected to develop clop in the price structure It Is expected that a general conclave con con- clave drive of copper producers will be beheld beheld beheld held here within the next month to discuss the situation in an effort to tolay tolay tolay lay the groundwork for the recovery of ot the industry Belgian find end American Amen Ameri can producers are the dominant factors fac fac- tors tars in the world market It is expected ex cx- in the copper trade that representatives representatives rep rep- of the Belgian Ka Katanga interests will come here for the con con- ference Much hinges on n their atti atti- tude Strength in the silver market holds some hope to some of the copper producers producers pro pro- for most copper ore one contains some silver which is melted primar primarily primar ily as a byproduct of or the red metal The Anaconda Copper Mining company com corn pany pan a l leader in the industry has announced announced an an- that drastic action was necessary necessary nee essary to curtail overhead expenses and as a consequence has cut salaries 5 to 15 per cent and adjusted wages downward downard The extent of wage re reductions reductions reductions re- re was not announced Stockholders in copper companies were the first to feel the effects of the ebbing tide of or profits in in the in in in- Virtually every copper company company com corn pany pony has cut its dividends during the thelast thelast thelast last year and Anaconda and several others have found it necessary to cease payments on their common stock stockWith With copper selling in the domestic market at 7 to 7 4 1 cents the tile minimum minimum mini mint mum level in history observers say there probably is not a single company com corn pany producing the met metal l without either a large gold or other metal output to apportion the costs of ot min mining min mm- ing lug and smelting that can operate profitably Only a few of ot th the so so- called low cost producers most of which have lines in m South American countries where labor is cheap can make ake money at 7 2 1 cents i