The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-25
UTAH CONSOLIDATED
CAUSES DISCUSSION
Completion of ToOeIe Smelter
Will Help Company
Materially.
GOOD REASONS FOR
PASSING THE DIVIDEND
Surplus Has Been Greatly Re-
duced by Combination of
Circumstances.

Tho Official recommendations OF Tn
heads Of the Utah Consolidated Coppe
company that the next regular quarterl!
dividend OF 80 cents per share be passe'
up for the ensuing quarter, seems TO have
created considerable commotton amons
The followers OF the copper game in tn,
cast. The passing OF this dividend. how
ever, Is but an act OF conservation on thC
part of the property management. which
realized full well. as do all others familiar
with the situation. that the company has
had rather a streak OF hard luck" dur
ing the past two years.
Relief is in sight. fortunately. in tho
near completion OF the new lntcrna tiona
smoter at Tooele. General Manager Ma
thewson, who is al present visiting in the
state on one OF his regular tours Of In
,snection. being authority for the state
incnt that the smclter will be ready To
receive tho Utah Con. ores, as pcr con-
tract, commencing April /, this year,
Reasons for Action.
Following the statement issued recent
~ by President Broughton OF the com
pany 10 acquaint the stockholders with
and 10 prepare them for the passing of
the dividend. the New York Mining Age
offers the following details on the COM
pany's present standing.
"At the very moment that sentiment in
copper share circles was becoming in
CreasjnSly confident. reports TO the ef-
feet that Utah Consolidated would prob
ably pass the n"Nt quarterly dividend
sent that stock down seven points in
short order and cNcrtod depressing cf
feet on The coppcTs generally. EYplana
tion for the proposed passing Of the divi-
Gend Is afforded ny the fact that the
company is at present producing APP
proNimately i00o0,oo0 pounds OF copper
per annum at cost OF something like
. cents pound, and consequently is
earning nj the rate of $3.50 share. or 30
cents share less than current dividend
requirements For some time the com
psny has been paving a portion of its
In 1907 dividend disbursements exceed
I'd net profits by S920.5S7 and In 1908 by
s213.6SS. which means that The company's
accumulated surplus was reduced to the
extent OF s1,1si,21J during those two
years. While the annual report for last
wear has moi yet been issued II is be-
iieved that the company went down into
It's surplus again TO pay dividends. In
view Of the fact that the company was
none too strong in net quick assets a
year ago. and that within the past year
il has acquired $500 600 or stock Of the
International Smelling and Refining com
pauy, at par. besides charging off S450.000
TO depreciation on account OF the dis
mantlns Of its old smeltcr its financial
position at the moment cannot be partiC-
ularlv strong.
Utah Consolidated has undergone
Very radical Transformation for the
worse in recent wears Four or Ave years
IS 600 000 pounds of copper per annun al
rost oi not more than . cents pound, |
3ftrT CreultlnG gold and silver values 10
cost OF production. With Calumet and
Arizona. Utah could turn ont copper at
smaller cost than any other producer
IN tho country Today costs are nj least
tricc as high as they were then and the |
roTpanvs output is about 10 per cent |
loss. Al that time the company was i'm |
- position 10 show net earnings OF almost |
3 on = l%-ccnt copper market. on such |
? '1arkei at the present time IL can do [
liti'" better than Fl a share.
"Th" first setback which Utah received |
WAS when the courts orderrd the COM
rauy 10 shut down its smelter. owing To
tho damaTe which ID was doing TO the
forming lands In its vicinity whcreupon
the Comusny WAS obliged 10 enter into
Pn unSa tlSfactarv contract with American
Smelling for the treatment Of It's ores at
liz" Garfield Smclter II has been esti-
mated thar this contract Increased Utahs
copper costs fully Il cents pound. For
trnately, however. the smolter which the
11terna tional company Is building at Too
cln Will be ready To begin the treatment
"f ttahs ores in about two months and
VIII thus save Utah Consolidated the |
equivalent OF about 30 cents n share per |
aunum. Incidentally as a result Of the
recent increase OF international Smeit-
ings annual dividend rate To S per cent
! tab Is now receiving $40, 600 "A year on
its holdings in that company Under the
il is probable that Utah
viii be out of the dividend ranks for only
a comparatively short time"