Weekly journal-miner., 1918-03-06

This compares with a production of 36,402,o72 pounds for 1916.
 The gold production for 1917 was l,655 ounces; for 1916, 2,570 ounces.
 Silver production on the other hand, increased from l2S,56S to 332,- 536 ounces.
 Gross revenue rose from S9,949,- 9lS to Sl4,5S3, ,64S7O: net income from, S7,40O,000 to SS,256, l77.l7. Dividends paid in 1917 amounted to Sl,680OO0, thus leaving balance of $6.576,ll7 to be added to surplus account.
 The 1917 production was from ll5.- O64 dry tons of orc, the recovery rep. resenting 95 per cent of the assay value. The average copper content recovered was just a trihe under H.5 per cent.
 In 19l6 the Extension shipped 77,- 46l tons of orc which averaged 25.5 per cent copper.
 All these 1917 figures are included in the annual report to the stock holders, mailed out of the New York office few days ago. The only copy so far received in Jerome is at the local office
 Presidents Statement
 In his statement to stockholders, President James s. Douglas said in part:
 Work on the shelter has not ad- NaI yet, when we take into consideration, the abnormal conditions that have prevailed we feel that satisfactory progress has been made. All cons signments Of material to us have been subject to preferences given to war material"
 Regarding the mine valuation the following remarks Of President Douglas are of particular interest to stockholders:
 The amendment of the U. s. in come tax law of September s, 1910 permitted mining companies to de- duct from gross income, a reasonable allowance for depletion thereof not to exceed the market value in the mine of the product thereof which has been mined and sold during, the year.
 In order to avail ourselves of this provision it was required by the In- tcrnal Revenue Department that the fair market value of the mine prop erty as of March l, 1915 be deter mined.
 "To meet this requirement. of the Department and to establish our rights to depletion we have, under the authority of the board of direc. ] tors. determined the fair market value of the natural deposits of min eral property as of March 1, 1915, | and placed them upon our books at S40,O00,000. This item now appears in the balance sheet"
 Managers Statement
 In commenting upon the 1917 pro- duction General Manager George Kingdom today predicted that it would represent fair average for the next ten years.
 "A great many people think that as soon as we get our smelter running the output of copper will show a great increase remarked MT. King, don. Such will not be the case. It IS true that we will treat much mort ! ore than we are marketing now, but 1t will be of much lower grade and the production of copper cannot be much greater. We arc now shipping our high-gradc orc and will soon be down to the ten and twelve per cent material"
 Shipments this month have not averaged more than $50 tons a day, the general manager also stated This is partly because of the shortage of freight cars. No important in- crease in shipments is contemplated as the aerial tramway which leads from the Edith shaft down to the bins on the V. T. & s. railroad is pretty well loaded.
 Kingdom would not even hazard a prediction as to when the shelter at Verde will be in operation. Ma tcrial of all kinds is being delayed The smokcstack has not been touched for more than week, ow- ing to shortage of fire bricks Tho Gallup plant, which has furnished ali the brick used to date, has proven inadequate to turn out tine lS0 car, loads required, and arrangements have been made for an additional supply from Los Angeles Ten thousand tons should arrive from Los Agclcs in day or two.
 Building Program Delayed
 Manager Kingdom gave out the further vitally important information that the company will not undertake to carry out its building program a, Verde this year and perhaps not till after the war It had been planned to start putting up brick dwellings and other buildings at Verde before this time.
 The switch in plans is partly duo to the failure of the company's brick