The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-02-16
Manager Paxson Estimates That
Net Of Copper Mine Exceeds
Earlier Figures
LETTER TO LOCAL AGENTS
GIVES OUTLOOK FOR 1917
Railroad and Power Line Are
Near Completion and New
Min Work Is Started


mated profit for 1916, net of operating
costs, of Engels Copper Mining Com
pany, according to letter from Elmer
p. Paxson, treasurer and manager Of
the company, received yesterday by
Bishop & Co., local agents for the cor
poration. a.. 81
The letter was written by Mr.. Pax.
son for the benefit of the large number
of stockholders of the company in the
Islands. His annual report, delayed
by the rush Of work, will be ready in
three weeks.
The estimated profit Of $500 900 is
100000 over estimates made early in
1916. The net profits of the company
for 1915 totalled $l33, 1882. The price
of the company's stock advanced on
the local exchange yesterday by a half
a dollar from $6.S7h to 1914. Last
April il was selling for $2,72h. Mr..
Paxson' s letter, dated February and
giving a comprehensive review of the
status Of operations during 1916 and
the outlook for 1917, follows:
f'The report for the year 1916 will
be printed in about three weeks. /
have been so rushed with new mill and
power line contracts, railroad, etc, that
IL has been very difficult to find time
for working on the report. / am hav-
ing full survey. and measurement
made of the operations underground in
order to give the stockholders an in
telligent idea of what has been done.
Half Million Profit
~ cannot yet give exact figures on
last years profits as | am awaiting
some inventories from the mine, but il
| win be in the neighborhood Of half n
| million, net of operating costs.
| 'tThe weather during January was the
coolest for many years in northern Cali
| fornia, causing us at least ten days loss
Of time. Yet, in spite Of this, the out
put was 754 tons Of concentrates. The
grade is much lower than usual, averag,
irg about twcnty-scven per cent, but
the recovery is considerably improved.
In other words, by getting lower grade
we obtain better recovery, which is
more important than grade at the pres
emit price Of copper.
"The present value of concentrates
is about $3.50 per ton Of twentysseven
per cent copper recovery averaging
about seventy-eight per cent, against
1897 per cent for the first six months
| of 1916. ~#t5.H ."t.t
Plenty Of Power
awe have plenty of power now and
will have from now on. We have also
just closed contract with the Great
Western Power Company TO build a
new power line from their big plant at
Las Phmas, in the Feather River Can
yon, up along the Western Pacific Rail-
road and then along our railroad TO the
mine, which will give us an ample sup
ply of power and should afford almost
perfect service as the line win be Of
low elevation instead Of running over
the mountains as at present.
"This they are doing at a cost Of
$4,000 to themselves, which shows
their confidence in our property. The
power line is to be completed by May 1.
eve have also just purchased two
large air compressors with capacity
of 1000 per minute, more than double
our present capacity, This will enable
us to push development work much
more rapidly than heretofore
New Mill Work Started
Work on the foundations for the
new mill has been commenced and will
be prosecuted as fast as possible. First
shipment of machinery will arrive
about April l., We have increased the
capacity Of tho first unit from 500 To
$50 tons Of ore per day, The Superior
tunnel still continues in ore of fair
grade, as well as number six tunnel
The latter now being over 100 feet in
ore of good average milling grade.
""Fhe Indian Valley Railroad rails
were laid 20 Crescent Mills on January
! and since that date our accumulation
Of some forty cnrloads has been ship.
ped, representing in value about $3.50,
600. Track laying has been slow on ac-
count of extreme cold weather and
snow but is now within ten miles Of the
mine, and as the weather is now mod,
Grating should be laid to the mine in
about month Is time. / am lcayinn
for Salt Lake for few DAYS TO ar,
range for the sale Of crude ore, as wa
will probably ship considerable uuan.
tity from the Superior mine of suffi,
GENTLY high grade.
"The above is written hastily for
the purpose of answering any in,
quiries from stockholders, pending The
annual report, which i will get out al
| ~ Il. a.. .