The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-05-26
U. S. COMPANY'S REPORT
AS VIEWED IN BOSTON

So far as actual dollars and cents are
concerned the United States SmeluhS
counanv must be reckOned as adding one
more to the list of disappointing reports
for 1907 issued by the companies Willcn
derive their revenue from the mining ana
treatment of metals. The production OF
the four metals-copper, lead, silver and
gold-upon which the company depends
for its income was, in each case, larger
than in 1906 and the price received TOT
such as were sold was very satisfactory
so that the gross earnings Tor the year
exceeded those for the preceding twelve
months by nearly A,0OOOO. Operating e&-
penses however, were so largely N eA-
cess of those for 1905 that the net earn
ings were but 100000 as against S3,504,
COO BY the time that unsold metals had
been charged off and dividends had been
paid the surplus had Shrunk from Sl,SSJ'-
600 to S557. 900, says the market letter OF
Hayden. Stone * Co.
ing companies labOred in 1897 have been
so thoroughly explained that we need not
dwell on this point. 1t is proper 10 re
mark. however, that the smelling end OF
the business suffered even more than the
mining end by reason OF the perpendlc-
ular decline in the price OF the metals
| So long as its contracts are ADJUSTED 10
conditions, it makes little dlIIeIehce 10 d
smelling company whether copper sells
al % or IL cents a pound, but when II mas
to carry three to five months supply OF
| the metal purchased in high-prlced ores
down to a low price, not only Is the Smelt-
| ing profit wiped out, but an actual loss
| Added 10 this tremendous handicap of
| a falling metal market was the further
disadvantage peculiar 10 companies opeT-
| ating at Bingham, of being obliged TO smut
| down its smelter at that point for several
/ months which prevented the United
| States Smelling company from shipping
normal output OF ore from It's Blhg-
| nam and Richmond Eureka properties.
| All this is the record of year that is
past; year that for its many draw backs
| could not cOnceivably be exceeded. NOW,
what of the future?' In attempting to de-
eide this point there are five distinct
| features which should be noted.
! First-In the matter of its smelling con-
| tracts, the companys position or year
ago is exactly reversed. The eosses due
| 10 the decline in the metal market have
| been charged off and no further loss car
| possibly accrue from that source. The
/ company, in short, will make the full
profit TO which it is entitled from the
smelling end of its business
'Second-The actual operations of the
company's various properties were, IN
| themselves. satisfactory In each case q
/ larger amount of ore was shipped than
i'm the ureVious year; a great deal of con-
| struction work was completed. and the
| nhvsical condition of the properties is
decidedly better than it was twelve
months ago.
| Tbird-The company's new properties
from which little income was derived II
1aO7 are now producing and should yield
a good profit this year. This PARTICULARS
applies to the gold and silver mines II
| Mexico.
/ have been settled and no interruptions
ON this score need be feared.
Fjfth-As the company suffered heavily
in 1901 from a falling metal market, so II
like manner it will gain during the pres
emf wear on a rising metal market.
Thus, although the metals themselve:
will probably not average as high TINS
wear as in 1907, the net profits Of tbs
United States Smelling company should
far outstrip those of that year, and SHOULD
compare favorably with those OF 1906
when it earned over 10 per cent on it
common stock.