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Show BP mm Bingham 'Mining Companies have a vexing problem before them a the cost of suspending operations Is greater than to continue present force and operate, at a slight loss. . A vexing problem confronts . the large copper producers whether to curtail output still more and thus further fur-ther increase the unit cost of output or shut down altogether, says the Boston Bos-ton News Bureau. The latter also is a costly procedure. . - , Many producers would like to cease operations at once were it not for the, difficulties attending resumption and the heavy cost of idleness. Many of them must In any event keep a force of surface and underground men at work in the upkeep of the property. Pumps must be kept in operation and drifts and level openings must not De allowed to fill or cave. Mining managements do not relish looking at red ink figures month after month. They are getting pretty close to the point where drastic action is imperative. im-perative. We violate no confidence when we say that the biggest men in the copper producing industry believe that only a complete stoniing of production pro-duction can cure the situation. No one of them, however, wants to lead off. , - - I Somewhere between 60 per cent and 70 per cent of the c-t of producing copper is consumed by wagss. The -v miners ar being.pald.theamo scale ' . as where" copper was selling at 26 cents. Today the metal is unsalable in quantity at 13 cents, but no reduction re-duction of wages has been put into general effect. Consequently, the cost of ""making" copper is very high so high, in fact, that it precludes all profit pro-fit in the business. There are a few isolated cases where a small balance over operating expenses can be shown, but these are far outweighed by the larger number showing big losses. This condition of affairs cannot last much longer. There is a limit beyond which further operating losses cannot be taken, beyond which further accumulations accu-mulations of metal cannot be financed, and that limit is close at hand. We have made some investigations to ascertain the status of the copper consuming demand in this country. We can make the statement that at the present time the brass industry is not employing over 33 1-3 per cent of its capacity. Prices of brass products have shown radical recessions in the , past few weeks, commensurate with the drop in copper and zinc. A reduc- . tion of between 3 cents and 4 cents a pound has been named by the brass producers in the last few weeks. There has, of course, been heavy reduction re-duction in working forces in the brass making industry as well as heavy cur- Itailment in working hours. It's the same story in copper as in other commodities. The ultimate con-. con-. sumer is not buying and adverse for- ! elgn exchanges preclude the normal t export outlet |
