New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-22
Copper Companies
Draw on Surplus
To Pay Dividends
Deficits Reported by Three
of Leading Porphyry Com
panies: Confidence in
the Outlook Is Expressed

Three leading porphry copper COM
panes had to draw heavily on their
surplus reserves to meet dividend pav.
ments in the December, 1918, quarter,
in the official reports made public yes
terday the following deficits after div.
idend payments were shown: Utah
Copper S729,497; Chino Copper, s8O3,
17s, and Ray Consolidated, s774,771.
The heavy drop in earnings was at.
trlbuted to continued high costs Of
PRODUCTION IN the face of a cessation
Of demand following soon after the
signing of the armistice. which resuits
ed IN the cancellation of government
orders for munitions and other war
material IN which copper was used ex-
tenslvely. Another contributory factor
IN cutting revenues was the policy of
the companies IN maintaining high
rate OF production until the first of
the year, when a general curtailment
went into effect. Discussing the con-
dltion OF the industry when the ar
mistlce was signed the Utah report
said: p0i'
Stocks Large
Drastic curtailment of production
should have been inaugurated immedi
ately. However, at the request Of the
war Industries Board, the output of
copper was continued until the end of
the year at fairly high rate Of pro-
ductlon, in order to keep labor en-
pioyed pending readjustment to low
er price level. This has resulted in
the accumulation by the producers of
large stock of unsod copper, car
ileu py the company, as usual, in it's
metal inventory at 1919 cents a pound.
which condition is reflected in the re-
duced earnings for the quarter"
confidence in the future, however, il
expressed by the statement that re-
Jurh TO normal conditions is expected
ny revival IN domestic and export
trade, which, it is forecast, should give
shareholders a reasonable return On
their investment
Inc net profits of the three copper
companies mentioned compare with Hpt the
last quarter of 1917 as follows:
Utah ........ s3,331,72s ss,34o7s4
6hlno .... 66,S0l 2,SS2,1
Ray ........... 4OS,103 2,57O,s72
The same companies, based on COM
pilations from their quarterly reports.
returned the following net profits for
1918 and 1917
1918 1917
Utah ...... $lS,945,7so s299S4 1853
CHINO ........ 4,143,317 10137, 1855
Kay ........ 4,652,542 10,414,350
The Utah Company's surplus last
year available for dividends was equal
TO 81 Loo share on S16,244, 900 capital
stock of $40 par value, compared with
Slo'45 share earned in 1917 Chino
reported last year $4.76 a share earned
on S4,349, 900 stock of S. par value.
while earnings of Ray Consolidated
were equivalent to S2.95 q share on
S15,771 ,796, capital stock of $40 par
value, against $500 a share earned in
1917.
Production Smaller
The gross production of the Utah
Copper Company last year amounted
to 197,978,557 pounds, contrasted with
2O6, ,442 pounds in 1917. The aver
age cost of production during the De-
tember quarter was 1888 cents
pound. compared with 1851 cents
pound for the preceding quarter The
earnings of the fourth quarter were
computed on the basis of 2O.44 cents
pound for copper, against 24.04 cents
in the third quarter.
for 1918 of 79,34O,372 pounds, com
pared with $3.50, 1872 pounds in 1917.
Cost of production in the December
quarter was 1910 cents a pound,
against 1903 cents in the September
quarter. Ray Consolidated's output
last year totalled 86,919,27O pounds,
compared with 92,2O7,356 pounds in
1917. The average cost of production
in the December quarter was 1906
cents pound. In the preceding quar-
ter it was 20.283 cents pound.