The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-05-19
ANACONDA COST OF
PRODUCTION SMALL
Merger at Butte Is Said to Place
Company in Good
Position.

Last Sunday It was stated In these
columns that the east believed the mer-
ger of copper mines in Butte by the Ana
conda company would permit Of cheaper
copper production. the cost being placed
as low as cents per pound. The Bos-
ton News Bureau article. which, In all
probability, gave rise TO the wire gossip.
in part Is as follows:
"'rhe statement can be made unequlvo-
cally that the mining properties to be
embraced IN the new Anaconda merger
were never In stronger position to make
low cost copper than today. IL can
be further stated that never before were
the Butte mines better fortified from an
underground point Of view. In short
these mines today have larger ore bodies,
richer ore bodies and greater reserves
than ever before in their history.
'It viii surprise many holders OF cop
per production to be embraced In the
new Anaconda is being made for less
than cents per pound. As matter or
fact this copper is being made for $.OS9
Sensational developments have re-
Gently been made In Anaconda proper
ties in the striking Of some eXtraordi-
narily rich ore in the High Orc and
levels and below. Recent assays have
been taken and tho copper values have
in several Instances shown better than
per cert, and In some cases better than
10 per cent, with high precious metal
recoveries,
IAN official of tho company states that
for tho year 1909 the actual net profits
OF all the properties to be embraced In
the enlarged Anaconda were Ss.SO0,0o
and In the operating cost there was In
cluded an item OF 81 1900 600 as depre-
citation charge against the Washoe
smolter.
"The lIberallty Of the Amalgamated
management in its treatment OF the depre-
citation account has never been fully rec
" and
its affiliated interests represent n capital
expenditure to date Of $40, 500, 600, and up
to the present time over $500, 900 has
been absorbed into operating costs as a
depreciation charge, that today this
smelter. the largest and most economical
plant OF Its kind In the world. has n book
value of less than $1,000. 600. In view of
the free handed policy of writing down the
actual cost OF this plant. IL is quite prob
able that hereafter any such eNtraordi-
nary depreciation charges will be unneces-
sary. This OF course VIII he directly 10
the benefit OF the copper cost.
ut is because OF their own bookkeeping
methods that the champions OF the vein
mines. the AmalSamated Copper interests.
look with some misglvIngs upon the book
keeping methods adopted by some Of the
porphyry producers. The AmalSamated
people appear TO be not in the slightest
degree disturbed by the !cent cost prom J.
simply say: 1t can't be done II proper
and honest recognition Is made OF all the
Items which the conservative management
places on the cost sheet.
THE Amalgamated people also deplore
the use OF the expression the survival Of
the attest taking the position that It un
duly and needlcssly alarms the holders OF
copper shares. and as pointing To a con-
test in the field OF copper production
which can only mean oblivion TO millions
Of dollars of copper investments. Such a
drag out they do not anticipate.
Returning to Amalgamated' 9-cent
cost the following briefly but officially
presents a summary OF the 1909 operations
OF all the mines TO be included In the Ana
conda merger:
Actual net pEohts after depre-
citation ...... ..s..s.r..,...,.S s,bUV,OUo
Written OFF against plant ac-
Total ...... .............,.SiO,20 200. 600
Earning power measured
against Anaconda shares. $50
"In brief Anaconda's capital as in
creased 10 1900, 600 shares, has an earning
capacity on lS-cent copper OF $3.50 per
share.