Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-08-21
What Utah Consolidated is Doing
As Against Senator CIark's
United Verde.
BINGHAM HAS ADVANTAGE.
Can Produce Copper More Chcaply
Than the Big arizona
Concern.


Utah Consolidated Is in many re-
spoDts % duplicate" says MI Walker.
"of the great United Verde perhaps il
Wiil prove 90 be greater than United
Verde To those who have been brought
nap to believe that United Verde is the
largest and richest mine in the world
this WiIl seem "a ridiculous statement.
] have been making some comparisons.
however ANA my statement has a basis
oI actua. figures Of production and pro-
fits
THE United Verde issues no state
Wanis OF operations. and ~ profits cdit
bc measured lu mo- other way than by
the dividends 10 pays As IL is dlyi-
demo payer of long standing and is
neither buying nor developing new
properties % undoubtedly accumulated
lis working surplus many years ago
ana must hc iu shape now % disburse
annually substantially an its net earn
ings Utah Consolidated. ON the other
nand. Is q young company which has
beeu adding TO is equipment and In
ctedsug lbs production very rapidly:
and. because Of growing requirements
w mat direction, has been steadily ac-
tuihuldllug WORKING capital
AS Utah issues detailed annual re-
ports, II is possible to make compari-
son ~ Its net earnings. after an con-
structIon, with the dividends paid by
the great United Verde company. Since
last October the United Verde has been
paying monthly dividends Of IS cents
per share ON It's 300 .000 shares OF stock.
on at ne rate Of 81 per share annually.
equivalent 20 $27OO,000. Utah CONSOLE
dated promises 90 produce 10 800 oO0
pounds Of copper this year al a cost Of
~ cents per pound. and. therefore.
should show net earnings of IA cents
per pound. or S273o 000 which is slightly
more than 50 per share on its Bon. 900
shares.
Last year the United Verde paid
only nine dividends Of IS cents each or
s-,V-aV0o, and iu the same wear Utah
Consolidateds net earnings were about
81 per share less than United Verda's
dividends, being Sl1G4SiS compared
with S.5i50o0 Another interesting fact
brought out by comparisons Is that
Jtah Consolidated Is apparently secur.
/ ing larger gold and silver hy-products
| ana making us copper at a much lower
/ cost than The great United Verde
/ which some writer's. with more enthus-
/ iasm than Information, have declared
| 10 be the greatest gold and silver mine
! IN the world and capable OF LAYING its
/ copper down I'm New York al no cost
| all expenses being paid by the precious
metal values secured During the three
/ years that Utah COnsoldated's net
l earnings have approximately emalled
I United Ncrde's dividend distributions I'm
/ output of copper has aggregated only
/ about half as many pounds II would
/ appear therefore that either through
/ greater economy Of operations. or as
/ The result Of much larger precious met
al values. Utah Consolidated must be
| making considerably mole profit per
| pound ~ copper than the United Verde
| The fact that United Verde passed sew.
| cral dividends when the price Of COPE
per declined Is the basis for my as
sumption that dividend payments rep.
resent current net earnings.
Compared for period. the showing
IS not as favorable for Utah Consoli.
dated. From 1907 10 1905. United Verde
/ produced 1905 600 pounds Of copper al
profit OF 40 cents per pound. and
paid lOl0650, in dividends. While dur.
ing The same period Utah Consolidated
produced 60 SS1, 400 pounds Of copper al
a profit of SOB and paid dividends I,
the amount of 50. 636 900.
During the five years covered by thh
comparison the Utah Consolidated pur
chased several new properties and bull
additions 90 its smclter, increasing iti
capacity 600 tons daily. In the sam
period the capacity Of the United Verd,
smelter was increased from 900 ton
10 l.i5N tons daily. but no new proper
ties were purchased. The cost OF smel
ter enlarg ment. therefore. must hav
been fully twice MS great. as related 4
copper production, In the case Of Uta'
az I'm that Of the United Verde. bot
companies having paid for this con
struction out Of earnings.
Again the Utah undertook IT'S i'm
proyements with a small surplus OF
hand and small production and earn
iuEs 90 draw from. while the Unite
Verde was al that time a large produc
or and dividend payer probably wit
a large cash surplus. The Increase l
. capacity amounted 90 900 per cent ln th
case of the Utah Consolidated and onl
20 per cent 30 The case OF the Unite
. Verde.
up 20 dat the United Verde has psi
total Of $50 S0s.iN IN dividends n
disbursements having extended over
period ~ rs years Utah Consolidate
paid Cos first dividend ln 1901 ana .
date has distributed iii52.00. Whom
ls remembered however that Uia
Consolidated began operations only mia
years ago With gross capitalization q
81 100000 which paid Tor its origin.
properties and Installed ts init,
equipment fhst i never called Tor 8f
d dit.1ral capital Dob any form but ha
" twice enlarged iis smelter developa
b It1 milne 900 "a very broad scale. dit
, frhutf7 total 10 Elt.G8 in div
- ic11s bought additional properties an
- ar lml. tei cash surplus OF appr0,
IUais.y $1,000 u1 one can doubt thl
l.F dividends 1li hr much larger iu al
. immediate future than they have bss
3 nm fNf rlft 7 personally believe d..
during ffe IIrrs 20 fhe mine. Utah Cor
HHasffI alN l.shIrse as much none
fI IN rfH.F H.l.H af ffe United Terd
hi ffr rr-.af' price n The st0cl
I'Ht rle fsffi Yields between
I r conc Ir an Investment Il
f.|". DOW being t!-0 seml-annua
scr nTF ol the price top
" er .f fhe rate of o. per cent f,
r 900 n copper holds 40 approx
f' iF4 cents per pound 10 won
tffu faai fiahr dividend rate nan,
hf considerably Increased next year
FEDERAL SMELLING DIVIDEND
Sew York Ang. I.-The FEEDER.
Mining 8 Smelling compiuy Today a,
% rf its regular quarterly dividend A.,
lh Der cent on a. preferred stock an
- ref cent on lts common stock an
an extra dividend Of q. per cent on h
common stock
% ON MINING EXCHANGE