The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-03-20
REPORT OF CONSOLIDATED

allow the ore 10 run. All cApOhSo
of $4,000 was necessitated to
change this system of handling h
ore. Second, the chief obstacle to
successful operation, however, was
found in the mill, and it is doubt
full IL all the troubles which &C.
veloped there could have been fore
seen. The two principal difficulties
proved to be lack of settling capac-
ity and improper filtering, due to
the installation of two untried types
of equipment for these duties. After
six weeks trial, including every
change hat could be devised for the
utilization of the settling equipment,
it was determined that other equip
ment for this purpose must be pro-
vided and orders therefor were
placed by wire. The defects in set
thing are believed to have bee full
ly remedied by the new equipment,
which became available for use in
October. Until this new installation
was completed, it was not possible to
determine on a working scale what
the efficiency of the filtering equip
ment would be. The then existing
contract for the filter installation
required a working test, and only by
such working test could it be deter
mined whether it would pay to re.
tain the original installation or be
preferable to incur the further
expense of substituting more eff
cient machines of known merit. A
months trial proved c~onclusively
that the latter plan was the only one
to pursue, as nc profit whatever
could be made while operating with
the original filters. Proposals for
new filters were thereupon called
for, and a contract let on December
"a. Complete delivery, on board cars
at the factory, will be made on Feb
ruary %, 1915. 1t is believed that
the plant can be operated at full ca
pacity shortly after April l. In the
meantime, it has been believed pru-
dent to discontinue mining opera
tons, in order to avoid further loss
es, which have already been cOnsid-
era il About $4,000 tons of ore,
which should have yielded a profit
of 100000 have been treated with
out profit, and about $500, 600 a
been expended in making alterations
in the mine and mill, including the
attempt to operate with the original
equipment. This has involved a loss
of approximately $290,0OO. At the
end of the year the Indebtedness OF
the company is $35O,000 and it is
estimated hat at least $4,000 more
will be needed to complete the in,
stallation of equipment, which will
enable the property to make a prof
it. With low grade ore, it will take
a long time to wipe out this debt and
begin earning dividends. but Il
engineers assure us that the mine
has large reserves of ore, of which
at least 10000 IONS lie already bro
ken in the Slopes, and a large area
of ground within which to develop
more. They assure us of a long life
and ultimate success for the prop
erty.
The attention or stockholders is
invited to changes in the profit and
loss statement and balance sheet,
particularly in relation to the bal
ance of profit and loss and to the
status of the asset known as mine
properties 1t will be remembered
that prior to January 1, 1918, ex-
haustions of ore were shown in our
balance sheets at the rate of $16.36
per ton for all tonnage previously
produced, being in accordance with
regulations of the United States
treasury department then existing,
which regulations have. subsequent
change in tho federal income tax Law
which limits depreciations on &C.
count of eXhaustions of ore to 5 per
cent of the gross value of the ore
produced. In order, therefore, that
our statement may, at the present
time, better conform to existing con-
ditions, we have reversed all entries
made on this accOun prior to jan
uary 1, 1918.
The gross production of the COM
pany's ground to date is 2,111. 1854
tons of ore, of an average value of
$3O.15 and a total gross value of
500 5S,0SS.S3. OF this production
III 1900, 900 was made by leasers in
he early days, and $2,7OO,OOO was
made by the constituent companies,
prior to their acquisition by this
company. The gross production by
the company itself, has been approx
mately 5O,000,OOO To date the
company has paid dividends amount
ing to 27,39S,215, or $40 per
share.
NICK BIRCHEN of 1onOpah came
il from the silver camp on the morn