The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1914-03-21

ing by using them as a balance
BY the foresight of previous man.
agements the mill failing has been
impounded from the beginning OF
operations and represents an asset
that will be available in the future.
Careful experiments have shown that
the failing can be subjected to fur
Their treatment resulting in a net
profit of a few cents per ton, and
plans for equipment to handle this
material r practically complete.
The equipment will be installed at
the proper time and about five years
will be required to complete the
treatment after operations begin.
Certain sections of the mines have
already been prospected to such an
extent as to render it certain that no
further profit can be made from
them by days pay work, but it is
also reasonably certain that they
contain enough small punches of ore
to render them attractive to lessees,
with a good chance that under a
leasing system, money nay be made
from them by both the company and
lessees. Leases have already been
given on two such blocks and the
policy will be extended to others as
fast as they become available.
In conclusion | wish to convey to
yourself and the board of directors
my thanks for the support given me
during the year, and to express my
appreciation of the loyal assistance
given by the assistant general man.
ager. Mr.. Hutchinson. the staff and
all employees.
Secretary-Treasurer's Report
The report of A.. H. Howe, secre-
tary and treasurer. in part, follows:
At the close of the year 1913 the
issued stock of the company remain
ed at the figure given in the past
several reports, namely 3,559,14S
shares, leaving unissued 1,44O,S52
shares out of our total authorized
capital of 5000, 900 shares.
Total earnings for the year were
s4,793,474.7S. Total expenses were
$2,061 ,529.91. Net ~realizations from
the years operations were $2,731,-
944.S7.
Two dividends were paid within
the year at rates of 80 cents per
respectively, aggregating $2,491.-
403.60.
At the beginning of the year W.
had cash balances of $72S,S23.0J
At the close of the year we had cash
balances of $1,074,372.12, with bull
lion transit and miscellaneous pro-
ducts settlements outstanding of
$1~G1,217.O5.
Changes in our corporate status
and accounting policy have occurred
within the year by reason of the fact
that a settlement has been effected
of questions relating to the taxation
in Nevada of the proceeds of mines,
which have been matters of dispute
and veXatiOn for many years. With
out resOrting to detail it may be said
that conferences leading to the free
and frank exchange of views have
occurred between the Nevada tax
commission and mine operators in
the state, resulting in an i%nterpreta-
ton of the law designed to establish
a taxation of mines with proper al
lowances for depreciation of plant
and equipment. The result of the
agreements growing out of these
conferences was the elimination of
separate milling and transportation
companies as profit-making corpora
tions. Our action with respect to
this matter is two-fOld.
First: We have SO established
the cOntractual relation subsisting
between the Mines company and the
Milling and Transportation company
thai the services of milling and
transportation heretofore performed
by the latter at a profit are now and
will in future be performed at actual
cost.
Second: This altered relation be-
tween the two corporations power
fully affects hat asset of the Mines
company known as stocks owned"
1t will be understood hal this as
set consisted largely in the owner
ship by the Mines company of the
entire capitalization of the Milling
and Transportation company, which
has heretofore been an income pro-
ducing asset. 1t having now ceased to
be an income producing asset, and is
in fact a dead asset of relatively
short life, it has been deemed de-
sirable to largely d~epreciate it, and
we hope to entirely depreciate it by
another year. should the separate
corporate entity of the Milling and
Transportation company be main
tanned. In addition to this deprecia-
ton we have followed our customary
practice of ~depreciating our mine
plant at a rate of 20 per cent. To
this depreciation has also been added