Bisbee daily review., 1921-02-22
.HIGH TAX AND
 !. FRE|GHT RATES INCREASE COST
Report Of United Verde Extension Shows Big
 Loss To Surplus

The annual report of the United Verde Extension Mining Company. with statement of earnings and bal ance sheet as at December 31. 1920. by James s. Douglas. president. for the board of directors. has been re- ceived here. and, in spite of the low cost of the Verde Extension company in producing copper. $.0S53 per pound, shows a net loss to surplus of SS19.- 20S.S1. The production cost of S.0S53 per pound does not include deprecia- tion. depletion or taxes.
 The report follows in part: General conditions are satisfactory with the exception of the additional cost of coal and coke at the mine and the increase in railroad freight rates which must be reduced before the mining industry of the state can re turn to a healthy condition
 State and county taxes paid during 1920 amounted to $467 .257.70, a bur den which must be reduced in order that the demand for lower cost may be met.
 Since the first of the year the smell ter has been in charge of George w. Prince, and E. E. Campbell has been employed as general superintendent in charge of all departments and is ex- pected to take up his duties about the middle of February.
 Production: Ore mined during the year amounted to 164,S07 dry tons averaging -12.S4 per cent copper, .023 ounces of gold. and 2.22 ounces sil- yer. Ore smelted during the year amounted to l61,61 dry tons, which yielded 41942.700 pounds of copper, 5.530 ounces of gold and 359,370 ounces of silver" r
 Development Work
 A total of 1884 feet of underground development work was done during the yeat.
 AS a result of development work done during the year on the 1900 foot level the ore body so far is proven to be about two-thirds in area as com pared with the ore body on the 1400 foot level. There is, however, further work still to be done in determining its size.
 .'On the 1900 foot level but limit ed amount of drifting has been done, and the extent of the ore is not yet determined, but it would seem that complete development will shoe the ore body to be somewhat smaller than on the level above.
 ."On the 1700 foot level the main drift south from the Audrey Shaft has been run to within twenty feet of the FIorencia line. and drift along the line has been extended westerly for a distance of 225 feet. | One crosscut was run at a point so feet north of the Florencia line in which, and in the main drift, low | grade disseminated ore is showing. | A crosscut has been run for TO feet to the west preparatory to entering the ore body when furher develop | ment on that level is taken up.
 For the present no development | work is being done below the 14OO foot leel, nor will work be started 1 until a recovery of the present low price of copper.
 "On the upper levels of the mine a | notable tonnage of oxidized siliceous ore has been partially developed.
 Ore Reserves: The amount of ore and remaining in the mine above the 1900 foot level is as follows:
 Estimated tonnage and average: ], JAS, 800 tons averaging 11.S1 per cent Gu. .023 Oz. Au. 222 Oz. Az
 "Smelter: The operation of one furnace during the year was continu- ous and the output was 41,942,70O pounds.
 No new construction was com menced at the smelling works, but the No. reverbatory was completed
 "Construction: The construction of a hospital building is about complete.
 COSTS: Mining ..... .0343 per lb. Smelling .... .0215 per lb. Freight on ore ... 001O per ID. Freight on bullion and
 refining . .0274 per ID. Other expenses ..... OOH per lb.