The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-01-29
REPORT OF THE
/ COLDF|ELD CON.
PAST Fiscal Year Reviewed in
Statement Which Is Just
Submitted.
TWO YEARS RESERVES
Wonderful Mine Has Shared
Many Millions With Its
Stockholders.

. GOLDFIELD. New. Jan. 2S.--The an
nual report 30 stockholders OF the Cold
deld Consolidated Mines company. now
being sent out from the company's Of
Aces, shows some features in respect to
The methods Of accounting employed that
Will be classed as nothing short OF revo-
lutionsry. They are fully explained in
the report, however, and are the result OF
requrements on the part of the treasury
department In connection with the ad-
minstrstion Of the federal corporation
Income tax law.
The report Is for company's fiscal year
ending October 81, 1911. and II has been
Behaved owing 10 the necessity for re-
arrpngine tho accounts 10 conform with
I The governments requirements. The com
rome tax under protest, as Is explained
In the report. and its re-arrangement or
arcounts is in part 10 take advantage
OF the provision. the depre eciations may
be claimed as Il deduction against in
cpne.
In dealing with this feature OF the
system OF accounting. the report OF the
secretary and treasurer says that the
Necessary changes are embodied in the
balance sheets and continues:
Law of the Nation.
t"In explanation OF these notifications
We wish 10 say that under the act OF
congress approved August ;, 1909. and
popularly known a. the federal corpora
ton income tax law. deprecations IN the
value Of property are made available as
DEDUCTION against gross income, but
/ The Internal revenue bureau OF the treas
ury department, having in charge the
administration OF that Law. requires all
on the books OF account and balance
sheets OF the corporations claiming the
Benefit thereof The methods prescribed
for ascertalnnE such dcprcciations made
|nocessary the adoption OF an estimated
Unit OF depreciation, asccrtalned ny rel
orence to the cost Of the property sub
feet 10 tho depreciation In question.
f"AvoiclinG unnecessary detail, it may be
briefly stated that the unit employed by
this company for that purpose, In obc-
5lencc 10 the requirements Of the treas
|ury department.. is $685. per ton, be-
Ing the estimated average cost per ton
TO The company Of its whole estimated
.tomneTcial tonnage.
The theory upon which these dcpre
cia lions for cNhsuStions Of ore arc based
4 IL the wcll-knoWn economic principle,
which has i'm numerous cases received iu-
. dicial recognition and approval, and
which should always be borne in mind
by investors In mining property. namely
That unlike most other business projects,
'the earnings OF a mine distributed In
'dividends arc chiefly derived from eX-
haustions of the mine property in which
the capital has been invested. Therefore.
no matter how profitable the Investment
may prove 10 he. the dividends should
not bc regarded as profit in the ordinary
acccptatlon Of that term until the net
alnount realized shall have c1ualled the
capital Invested i'm the mine property,
"Rcadors of the report Will observe
..fliat hy reason OF the adoption OF de-
precating unit 9S4 required by the
United States treasury department. II
neressarlly results that The net rcaliza-
.
operations may he derived in part from
exhais,lons of assets and in part from
apparent profits flowing from a net re-
peSery per ton in excess Of tic estimated