Bisbee daily review., 1907-04-24
HAYDENSTONECO. COMMENTS ON
 NORTH BUTTE
Cross Costs Per Pound of Cop
 per Produced Amounted to 9.37c Tendency In DireC- ton Of Higher Working Cost,

A brief synopsis of the North Butte report of operations for the fiscal year ending March 3l has been published, and while the figures are apt to prove misleading in analysing the results ob- tained in detail, yet they are sufficient to demonstrate that the recent high price of the company's shares must have rather defected it's recent Isvor- able underground developments and future possibilities than its volume of production and earnings.
 Due allowance must be made for the fact that advantage was widely taken of the favorable metal market to the extent that lower average grade ore was treated than the year previous. The wage scale paid last year was higher. likewise the cost of fuel and supplies. Development work was con ducted on q broad scale, and produc- ton suffered on account of labor trou- bles and adverse weather conditions. The features here enumerated were contributing factors to the increased cost of production.
 But. on the other hand. the compa-
 
 greater portion of the year Of its own working shaft. thus eliminating the ex- cessive cost of tramming, made neces- sary the year previous in sending it's output to surface through the shaft of neighboring producer, In addition to which it commenced the year with ad- VanJageS In the way of fairly extensive reserves and well rounded out work inS force.
 We quite agree that the tendency, despite the most effective economies that may be inaugurated, is in the di- rection of higher working costs; but from the character of the information which gained publicity regarding the achievements of this company during the period under discussion we confess to having looked forward to a more :reditable exhibit, not only in the mat CT of costs, but also from the stand point of production.
 But it seems highly probable that a detailed statement of the eXpendi- lures incident to the years operations will place the results. as a whole, in more favorable light Payments have been made on claims acquired since the organization of the com pany, and we feel confident that the extent of the disbursements in this direction will lessen the disappoint, ment due to a cost of $3,0S1 ,513 for ore production of 32,S65, ,907 pounds of copper, compared with a cost of S2, 2S5, IF for an output of 30,954 j, 7SS pounds the year previous.
 Gross costs per pound of copper produced amounted to 9.37 cents. If the expenditures of the past year do not include rather liberal payments for the purchase of lands recently acquired, it is clearly evident that with the metal selling at IS cents net earnings for the year would have fallen short of the total disburse- ments to the shareholders. Cost per pound for the year ending March 31, 1906 were trifle less than "A cents.
 There is little to hope for in the way of improvement in the working costs of this company in the imme- diate future, if we accept the item incident to a growing production. The price of labor has been further ad- vanced, while the extensive scale of development and construction work mapped out will cover an extended period, for it must be remembered that while its daily ore output iS now about 400 tons, future oUtpgt of more than 5000 tons is being looked forward to.
 The feature of the years operations is to be found in the character Of tue developments, which nave addeG inl- measurably to the future life of the company, and which tend to strength en the belief that it IS still in its in- fancy as a producer. In fact a mate riai increased production from this source is assured at no distant date. Exceptional yaiues have been cis- closed in the IS00-foot level of the Edith May vein, the greatest dapth thus far obtained on the property. In addition to this, two forme1iy Gniden- tified copper-beariag veins have been intercepted by the Crossseut neing GX- 1ended from the active workings b fhe Berlin vein. vhic1, by the way, will be reached during the latter half sT.-.