Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-02-16

S55.925,000. or about % per cent of the
apparent ultimate profit. the stock has
an Investment element. or margin CT
safety. which should make 1t espccl-
ally attractive to the more conservative
class of mining investors.
"A good deal has been said recently
concerning the practise of the manage
ment of carrying as credit n portion
OF the current heavy expenditures for
stripping Or uncoVering Its ore bodies.
The claim is made that tho expense of
this stripping should be charged
against the cost of making copper at
the present time. AS a matter of fact
the company is now removing consider
able more than one ton of overburden
for every ton of ore it is mining. As
the overburden averages about 10 feet
thick while the ore varies from 2oO 10
$50 feet each ton OF overburden Drac~
tically covers four tons OF ore. The
cost of removing one ton of overbur-
den. therefore. should be charged
against the cost Of making the copper
contained to four tons of ore, The
managements policy of carrying
portion OF overburden expense during
this period while several times as mucn
ore Is being uncovered as is being
mined has not the object In view of
making the cost OF copper appear low.
but Is intended to keep stockholders
informed of what the actual average
cost of making copper is and will be
during the life of the mine.
AT OTHER MINES.
THE reason for carrying portion
of the charge OF removing overburden
as u credit until it can be spread
evenly over the cost of mining ore
may be illustrated by the development
OF a mine at Lake Superior, Butte or
elsewhere which operates on a deep
vein system. 1t is the custom In such
districts to first sink and equip shafts
and open up the ore preparatory 10
mining All this expense Is usually
charged to capital account. After pro-
duction begins, however. the cost of
deepening the shafts. the extension of
new levels, etc, Is charged against
the cost of making copper
I'm the case OF Utah Copper the re-
moval of the overburden by steam
shovels preparatory TO extracting the
orc by the same method is equivalent
TO shaft sinking. Utah Copper is prac-
tlcally doing Its initial development
work and mining at the same time,
While i'm the case OF the shaft mine the
expense of initial development is
charged to capital account however.
Utah Copper proposes ultimately to
charge practically all of this expense
against the cost of making copper.
Stockholders have reason to be thankful
that the management is sufficiently
honest 10 insist that this overburden
account be spread evenly and fairly
over the cost of mining. An unscru-
pulouS management could remove over
burden on very extensive scale.
charge the whole expense TO current
account and. by making the copper
mined row apparently cost Il or Is
cents pound, discourage stocthold
ers and buy In the stock for small
fraction of its actual value.
Before Boston Consolidated began
TO mill any OF its porphyry ore at all
1t removed millions of tons of over
burden with steam shovels This has
been charged to capital account al
ready. and the quantity removed will
not have to be removed again Tho
work was not finished, but the quantity
remaining probably represents not over
one ton of overburden to six or eight
tons OF ore The expense OF the strip
ping already done will be saved to the
Utah Copper company.
GLAD TO GET STOCK.
The decline In the general market
the past week naturally carried Utah
Copper with II. 1t dropped To about
AS. No attempt was made by the un-
derwriters TO support the stock The
underwriting syndicate which has
agreed to take Il 500 shares at $50. less
n l per cent commission. includes all
the large investment holders Identified
with the management, aud from my
personal acquaintance with them / am
satisfied that they VIII be glad to re-
Lao. flC r.HlN
stock they may obtain in the under
writing At the present writing the
stock is back around $50 per share.
Many stockholders may not subscribe
to their stock because of the apparent
lack of profit In so doing, but IL they
collectively ATTEMPT To get any consid-
eroole proportion of this now Issue In
the market they viii find that the stock
Is not obtainable at anything like pres
cnt figures
"Unquestionably Utah Copper Is
worth SIS a share for investment
and l firmly believe 1t VIII sell at that
price some time this year. An op-
portunity is now presented TO purchase
the stock at a much lower price than
Insiders are known to believe II
worth. Viewed from n speculative
standpoint the fact that the under
writers VIII receive n very large
amount Of the new STOCK at price
higher than the present market Is as
surance that the stock Will have
strong and Interested friends for a
long time to come. and it is reason
able to expect that no effort will be
spared to make a good market for the
stock
There arc very great many in
vestors and spectators all over the
world who are thoroughly conversant
with the magnitude of Utah Copper's
operations and the great Intrinsic
value of Its stock. The buying demand
for 1t Is pretty sure to come with a
rush us soon as speculative temper
changes for the better. and / believe
this will cause the stock to have an
immediate advance OF 10 or 10 points.
I strongly advise It's purchase both for
speculation and investment"
NO COPPER IN GOLDFTELD,