New-York tribune., 1918-04-19
Copper Earnings
Fall as Costs
Mount Skyward
Chino and Ray Both Report
Sharp Reductions in
Profits for 1917

hepOTLS OIL 1Sl OpcTdtlOHS VI IHc
Chino Copper Company and the Ray
Consolidated Copper Company of the
so-called porphyry group of producing
properties, issued to the stockholders
yesterday, emphasize the increased
cost of turning out copper due to the
rising price of labor and materials.
Heavy Federal taxes also added to the
burden, and in the case Of both COM
panies substantial decreases in earn
ings were reported. The Chino Com
pany showed S9,512,854 in net profits
for 1917, decrease of $3,O15,o94 COM
pared with 1916. The Ray company
showed ss,7o1,17o net, decrease Of
$2,015,257 compared with the preced-
ing year.
Gross production of copper by the
Chino company in 1917 was 83,339, 1872
pounds, while the mines also yielded
$50, ,160 in gold and silver. According
to c. M. MacNeill, president of the
company, met cost of producing cop
per for the year was 11.39 cents per
pound, as compared with 8.7 cents for
1916. This was after deducting pre-
cious metal values and miscellaneous
earnings for the year. which amounted
to .46 cents per pound, from the cost
of producing. copper. Taxes accrued
and included in operating expenses
during the year were insufficient by
SS30,996 to cover the total Of S2.033, ,439
for all 1917 taxes, as now estimated
and returned to the proper officials.
Total cost, including as usual all taxes
as last stated, and also including ad-
Justment of income from stripping ac
count, was 1919 cents per pound.
Higher prices for labor and supplies
and increases in taxes in 1917 are re-
sponsble for this considerable advance
in cost of production.
while the price at which the years
production of copper was carried on
the company's books was 24.116 cents,
delivered during the year was 1881
cents. the difference being principally
due to accumulation at the end of the
year of considerable quantity of un-
sold copper, which, in accordance with
the company's usual practice, was car
RED at 13.5 cents per pound. 1t should
also be noted that on September 21,
1917, the government made a fixed
price Of 23.5 cents per pound for cop
per affecting all future contracts, which
l. at this date is still in effect. An
amount for depreciation of rlans of
per cent of their total cost was set
aside and included in operating ex-
penses."
Copper production of the Ray Con-
solidated last year set new record
for the company at 92,207356 pounds,
an increase of 18 per cent. compared
with 1916. Average cost of net cop
per produced from milling ores. after
making allowances for smelling and
refining deductions and crediting divi-
dends from the Ray e. Gila Valley
Railroad and other miscellaneous in
come as reduction of operating costs,
was l2.141 cents per pound. The COM
plned cost per pound of net copper
produced from milling ore and direct
shlpping ore for the year was 1929
cents, compared with 10.267 cents per
pound IN 1916. Of the 1917 cost. I. 1896
cents per pound represented resarvo
created during the year to provide for
payment of estimated state and local
taxes and portion of the Federal
taxes. as we'll as depreciation CHARGES
lhe total Of the Federal taxes could
not be estimated, the report saws. until
after the close of the wear. when il
was found that the amounts reserved
were insufficient to meet the REQUIRE
ments.
, IN conjunction with the Chino the
,kay Consolidated Company ACQUIRED
last last, year an interest in large area of
STai H lands IN the vicinity of Gallup,
guate, supply of coal. it having been
found that confidence could not ho
placed in the procurement At reasonl
able prices of a sure and steady snn-
ply of fuel OIL while at the same tino
the source of coal supply was not
entirely dependable. The coal nronl
ert1es purchased are being DEVELOPED
under a new company that has heen
formed for that purpose.