The sun., 1919-04-12
NET
SHOWS A DECREASE
Profits for 1913 Drop Nearly
100000, According to
Annual Report.
SALES TOTAL $17,516,323
Shortage Of Labor Prevented
Maximum Production, but
Did Not Stop Work.

During 1918 the gross business Of the
Inspiration Consolidated Copper Com
pany declined nearly s4.ooo.ooo and net
profits after all charges for expenses.
depreciation, &C., fell of to a similar ex-
tent While mining expenses, including
development. were substantially higher
than In 1917 the charges for transporta-
ton. reduction, &C., declined slightly.
and thus the total expenses Of 1918 were
about $1.5oo.o0o higher than in the pre-
ceding twelve months. The annual re-
port Of tho company was made public
yesterday.
The report shows total sales OF copper
Of S17,516,S23, against S21,247,217 in
1917 The expenses for 1918 were s11,-
So5,321, against $10.33s,630 in 1917. The
copper on hand at the close Of 1918, and
which was produced during that period
but not disposed of was valued at ST.
s7S,09s. That amount was deducted in
the report from the years. expenses as
not properly chargeable against the in
come, which made the total deduction
for expenses ss.s27.222. leaving a net in
come for the year of ss.eSs.10o. Depre-
citation s750,000. was unchanged from
100000 higher.
The net earnings for 1918, after all
deductions. including s1.06S,743 for ad-
ministration expenses and Federal Cor
poration taxes totalled $s,22e.l63 or
s6.s6 a share on the 1.11S,e67 shares of
$40 par value. In 1917 the net earn
ings were $l1.0s0,731 or $9.3s a share
on the outstanding capital stock.
Although operations were conducted
throughout the year the report shows
maximum production was not obtained
because Of the shortage Of labor. More
than 100000 tons of concentrating ore
and over $4,000 tons OF silicious oxide
ore were mined during the year, but no
development for increasing ore reserves
was undertaken The yield OF copper
from the concentrating ores was 1908
pounds q ton
The total copper produced was $780,
oI pounds. Of which 70,694,324 were
sold at an average price of 24.77S cents
pound. The cost OF the copper derived
from orc treated. the report shows. ex-
elusive Of depreciation and Federal In
come tax was 1889 cents a pound,
which represents an increase Of nearly
a cent q pound more than the average
cost price in 1917 when ore was pro-
duced at 10.349 cents a pound. The
ASAU PiouuCttOh SOst dNcTdkeu 90
cents a pound '"The increased COSTS"
the report says. "are due to increases
in wages. the cost OF fuel oil and gen.
eral supplies. State and county taxes,
freight rates and refinery charges on
copper produced and a decreased recov-
cry in pounds of copper per ton of ore.
due to abnormal conditions prevailing
In markets for necessary supplies and
to the fact that tho ore treated was
slightly more refractory than In previous
years"
Cornelius r. Kelley. president OF the
company. in the report. says: "On ac-
count OF the necessity for protecting the
fuel oil supply upon which operations Of
the company depend It was deemed nd
vtsable to purchase with the Anaconda
Copper Mining Company. owner OF the
International Smelling Company, 100
acres of oil producing land in the
Bakersfield district, California. The
Arizona OIL Company was formed and
title to the property was conveyed to f.
The oil company has an authorized capt.
tai Of s2,500.oo0. OF which 1890 shares.
having o par value of 800. have been
issued. Your corr pany and the Ana
conda each owns one half OF the issued
stock. The net investment OF your COM
pany in this stock amounts to f7e4.-
66s01."