Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-03-23
President Dcrn In Open Letter Tells
why Dividend Is Passed,

''As ls generaly known. a very Sc
rlous coal shortage has existed through
OUT the west DURING the past fall and
winter, says John pern, president of
the Con STcrcur IN a letter 70 stock
holders. "'rhe Consolidated Mercur
has been an especial sufferer from
ihls cause, Commencing early in Sep
Ser1ber and lasting until very recent
~, we were constantly short of the
necessary fuel Tor our roasting fur
naces As a result we We're lnuble to
run the rGasliug department at It's full
capacity, For three months We ran
only as many furnaces as the coal sup
ply would permit, always hoping that
the situation would improve Instea d
OF getting better, II got WORSE and
from December 10 to january 2, ali
OF the furnaces were idle II was not
until january 70 that the plant was
In full commission again,
THE base ore. which requires roast =
Ing LIS higher grade than the pSid lied,
consequently the fuel shortage not only
decreased The tonnage, bun also re-
duced the average value OF the ore
treated,
Furthermore, the spasmodlc man
ner IN which the roasteTs were ope-
4
OF results; and this fact, coupled with
the increased proportion OF the more
Shiny oHidlzed ore. injured the extrac-
| ton OF values in the cyanide plant
IN July and August, while condl ions
We're normal, the tallings averaged SIS
cents, From September to February
they averaged SHOP
Inder these conditions IL has been
impossible for the company To max
any money. When operations are con-
Quoted on such close margin, profits
are largely dependent upon stea diness
and uniformity Of the work and these
features have been almost wholly alb
sent during the period mentioned
While the coal shortage has been
the chief cause OF our troubles. there
have been other mishaps which have
helped 10 make matters worse. In
october fire destroyed our sawmlll
and 1ramway m0tor-hOuse. and burned
both Of our electric locomotives, Thess
machines have since been repaired, hut
theiT temporary loss caused Sc
rlous Interruption of operations. In
FEBRUARY The company from whom we
buy our electric power had about 1, 900
feet OF iiumc destroyed by snOwside
with the result that we We're without
current for several days, on until we
finally found that II would be advisa-
BILE for US 70 start up our OWN auxiliary
steam plant There have been other ac-
cldents. which would be OF small mo-
ment under ordinary conditions. but
which have proved expensive. coming
on top OF the fuel situation,
In the last annual report stock
holders We're advised that we hoped TO
Install new machinery during this eur i.
rent year, to decrease the amount lost
In The tlilings, La November the man
agement WAS prepared to recommend a
~ M pt ara a IA "a Of a
Immediately authorized Its installation,
Construction work Is now under way,
and is progressing rapidly. This plant
promises a very materiul Improvement
In the extraction OF values. If &C had
been In operation during the past six
months, doubtless the cpmuaHy's OPP
eratlons would have shown hand some
PROFIT despite the adverse Circumstance
es. II is confidently expected that the
cost Of The slime plant VIII quickly be
returned In Increased earnings.
''rhe eSplRnatIon herein made regard
ing the coal shortage must mako u
clear that Tor several months past our
EARNINGS have been below our usual
dividend rate ana this fact alone
would make Il prudent 10 pass "a dIyl.
dend at ibis time, But when with de
creased earnings are coupled The heavy
expenditures OH account of slime plant
construction. conservatism indicates
that we shall probably conclude io omit
Two dividends. rather than make such
% heavy drafl On our surplus fund.
The reduced earnings ~ the pasr
SIX nprths cam lu no wise be attributed
so the condition of the miues The
property Looks AS Wen as /; ala AT the
close ~ the last fiscal year and III Ope-
nations had been regular the earning
would haye remained satisfactory Al
I THIS preyrnI time Operations are again
. OBJ .tltal ialt IL lHt al