New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-16
Porphyry Coppers
Report a Heavy
Slump in Profits
Bad Showing in Last Quar-
ter Due to Conditions No
Longer Obtaining

The three leading porphyry copper
producing companies. the Utah. Chino
and Ray Consolidated, issued their re-
ports for the September quarter yes
terday, and in every case heavy de-
creases in earnings we're disclosed. as
compared with the June and other pre-
ceding quarters.
The Utah Company reported net
profits Of $1,000 22. compared with
IS, s9s ,62s in the June quarter; the
Chino, 1868 400, compared with s3,725,-
e8l in the preceding three months, and
the Ray Consolidated, s664,5s4. COM
pared with s3,664,831 in the June
quarter. In each case large deheit
was shown after the payment of div
ldends.
An analysis of the reports, however,
disclosed the fact that the showing OF
the three companies was not so un-
favorable as indicated In the income
account, inasmuch as & large amount
of unsold copper on hand was carried
In the inventory at 1874 cents a pound,
whereas the market value Of the cop
per Is about 10 cents higher. This
copper has since been sold.
Explanation OF Decline
The Utah Copper Company, which
reported a deficit Of s3,eeS,7S4 for the
September quarter, compared with
surplus Of s4.s77,s2e In the June quar-
ter, explains the situation as follows'
Earnings for the third quarter are
computed on the basi, Of l4.oso cents
for copper, as compared with T'SiI
cent, for the previous quarter. Unsoid
conner on hand and in transit Is, &C
cordine to established custom, carried
IN our inventory at 1914 cents pound
This ia the first quarter for over
wear in which there has been any SUD-
stantial increase in the quantity OF
conner available for delivery and un-
sold. This accumulation of unsold cop
per. which is inventoried at 1874 cents
a mound. is responsible for the low
average carrying price shown Tor the
quarter, and, taken together with In
creased operating expenses, accounts
for the decrease In calculated earnings
"The increase of unsold copper IS que
70 the fact that during this particular
quarter negotiations between copper
nroducers and the United States gov
eminent were in progress TO determine
nnon future handling OF copper safes
and. as a result, sales at dehnite prices
were practically suspended, not only 70
the government, but TO other users
Since the end of the quarter, the price
having been fixed by the government at
23h cents. the government commltJe
ia daily placing contracts with various
producers, and your management IS ad-
yised by its sales agent that all copper
due for delivery 10 the end Of the year
has been sold, and therefore the unsold
copper appearing in this report IS a
nurely temporary condition. Earnings
for the fourth quarter will therefore
show. in addition 10 those arising from
production of that quarter, the proht
from sales at 231s cents of the unsold
copper carried in this quarter at 1872
cents"
The income account of the Utah COM
pares with the June quarter as follows'
Qtr. ended Qtr. ended
Sep. 30, IT June 30,17
Net profits. 030222 SS,Se8,628
otb.r income 17s,428 18e.413
Tncome from divs. 1,e25,575 t,475, 500
Total profts 50. ,225 s1o,5e3.54
n;vidends paid. 6.4e7, $50 5,685,715
Dsscit ~ .s3.663,735 .s4,s77, s26