The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-23
GUGGENHE|MS EARN
SIXTEEN PER CENT
Annua, Report Shows Increase
in Utah Copper Credit
Last Year.

In reviewing the annual report of the
Guggenheim Exploration company the
Wall Street Journal says the company's
net earnings In 1910 OF s3.347,72l were
equivalent 10 16.1 per cent on It's $50. 703,- :
far the best the company has known In
1909 ii earned 14.T per cent. or SO, ,056. .6l6,
on its stock and 1912 per cent. or 2.125.-
So?, In 1908. The Guggcnheim Exploration
company Is A holding company and OWLS
III, 1870 shares of American Smclters Sc
curlties common stock which is carried
on It's books at nominal value OF ST.
nut Tho number OF shares II owns I'm the
other companies in which ii is Interested
is impossible 10 ascertain with any degree
OF accuracy, since all the information
vouchsafcd on this point is that these
stocks arc carried. Eat cost" That their
value on The company's books is consd-
erably less than their par value is evil
dent from the fact that If they were ear
ried at par the company's income for 1910
would have approXimated S2o00.0 000 in
stead OF S3.347. 72I.
Cost" of Stocks
The cost" of the stocks owned as
shown in the last statement follows:
American smelters Securities
"a" ..-...................s s13, $50, 900
AmeTisan n",nSs"n smcl'ers Securities :,
Esperanza Limited ......... 300. .3s0
Utah Copper Co..........,... 9.022 9S5
Yukon Gold ..,.., ..........., 9,7S8, 409
miscellaneous investments -. 1928
Total Observation-Disclosures sac. .9sS. $50
Representing l12.490 shares.
In the 1909 annual statement President
Daniel Guggcnhcim placed the total book
value of the securities owned by the
company at SG5500, 900 which would give
GuSgenheim Exploration stock a book
value of $500 n share. Its present market
price is about $500 per share.
As the earnings OF the Utah Copper
company and especially the American
Smeltcrs Securities company have largely
Increased during the last year. the book
value OF the Guggenheim Exploration
stock must be considerably greater than
year ago If the American Smelling
and Refining company purchases tho tl2, :
owned by tho Exploration company. at a
price around $50 share. as has been
unauthoritatively reported that ii ls
planning Ia do on repayment OF It's loans
TO the Securities company. the EXplora
tion company will add about s5.625. 900 TO
It's cash assets, but II does not seem like
least not until Securities common has
been placed upon dividend paying
basis
Principal Changes.
Principal changes in the last statement
OF the Exploration company. compared
Win the 1909 report. arc tho reduction
of rcceivablcs from S1.17O,S0l 10 1926. s95
and the increase In cash from sl.4s3. o75
10 S2,19S.150 The Si.23i. ioS Of Nevada
Consolidated stock disappears In the last
balance sheet and reappears in the form
OF Utah stock, tho amount OF the latter
increasing from S.7SSGf7 to So. 022. .9S6. In
other respects tho balance sheet Is sub
stantially unchanged.
The increases In earnings of the Gug-
genheim Exploration company in the last
two years como chiefly from the prospcri-
~ Of the low grade copper producers,
represented by the Utah stock II owns.
4 continuance OF this improved showing.
therefore. depends upon the ability Of the
low grade properties 10 maintain their
earnings. which I'm turn rests upon the
course of the copper metal market II
is figured that at l2 cents pound tho
Utah Copper company can maintain lts
present IS per annum dividend and show
surplus Of 5000. 900 for the year, but
an iI-ccnt market would doubtless even
tualy moan cut in the rate with cor
scqucut smaller returns TO the EXplora =
tion company. Tho latter, with its So.
laS.1 cash resources and surplus of ap-
proximatcly S15.Oo 900. Is in a strong
position.