White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1921-05-08
NEVADA. CONSOLIDATED
REPORT FOR YEAR 1920

The annual report of ID. {. Jack
ling. president of the Nevada Consoi-
idated Copper Company, makes inter
esting reading as dealing with INT
local Upper mining and smeiting
business during the year lsze'
Among the subjects touched upon IN
the report are high wage scales, nisn
cost of coal and the decreased earn
ings Of the Nevada Northern railway
According to the report the pro
euction of the Nevada Consolidated
Conner Company during 1920 was
approximately so per cent OF the
actual producing capacity, or 4s,3ll,-
aS5 pounds. as compared with a..
a7I.S92 pounds for the preceding
wear. Production vas reduced to 40
Per cent during the last quarter OF
the year.
the operating revenue for the year
1920 was S9,067 .025.45. operating
expenses S9.26i.443.S3, which left a
net loss from operation plus deple-
ton of s~I94,41S.3S. Miscellaneous
income brought the total income of
the company from all sources up TO
1896, 904.43. After making capital
distribution amounting TO Sl,49s,-
592.75 and paying additional income
and excess profits tax of s35S.z42 46
from the balance of sS.1S0.E33.o2, a
balance OF s6.53S. 602.24 December
81, 1890. remained.
The report says in part.
statement of operations for the
year shows a net profit from all
sources Of 1926, 904.43. approximate
Is IL cents per share. as compared
| with 81 cents per share for the year
1919.
The reserve of developed ore re-
ported, 63,s45,631 tons. averaging
1879 per cent copper, is exclusive of
carbonate ores and also OF the ton
nages of commercial ore developed
and partially blocked u in the Kim
cerly, Wedge and Veteran groups OF
claims, totalling some 500 900 tons
of ore assaying "a per cen copper.
THE cost of production OF refined
copper, including the usual charges
for depreciation OF plant and equip
ment. all fixed and general expenses
and all taxes other than federal in
come and profits taxes. for which no
reserves were created, and after cred
iting miscellaneous earnings and the
value OF the gold and silver content
of the ores, was 17.28 cents per
POUND. Excluding the charge for de-
probation. which involved no cash
outlay. the net cost for the year was
1858 cents per pound. a. against q
comparative cost of 14.44 cents per
pound OF copper in 1919
THE reduction of costs by credit
for precious metal values and the
miscellaneous income a~ppertaining to
the years operations amounted to
only 1.S9 cents per pound of copper
in 1920, as compared with a similar
credit of 2.51 cents per pound in
1919. this difference being princi-
pally due to a decrease in earnings of
the Nevada Northern railway.
while some part of the contin-
ued high cost of production Is neees-
sarily due to the burden of taxes and
administrative and general overhead
COTS imposed upon a half-capacity
output, the principal causes were
high wage schedules, excessive fuel
and supply costs and further ad-
yances in freight rates.
During the greater part OF the
year the wage scale remained at war
time levels and the purchase price of
&C uipment. materials and supplies
reached new high points. The ad-
vanced cost of fuel alone. plus
freight, is responsible for fully l cent
ger pound of the increase in the pro-
duction cost of copper.
The quarterly distributions to
stockholders during the year aggre-
gated $~1,499,5s2.75, being at the rate
OF rs cents per share for the first
three quarterly periods of the year.
a total OF IS cents per share OF out
standing stock for the year This
/, brings the total Of DIVIDEND and cap
itai distributions to stockholders
from tho beginning OF operations to
the end of the year 1920 up to an ag-
gregate of S46,76S.616.6
las the result Of limited sales and
low prices of copper. however. 1T has
been impossible to either arm or re-
alize sufficient cash. over and above
operating requirements. with which
to continue the payment OF dividends.
1t was accordingly necessary to dis
| continue such distributions for the
present. The three quarterly distri.
buttons made during the year reduced
the surplus by si.263, 6sS.32. The
surplus was further reduced by the
payment of additional fedrai taxes for
the year 1917 in amount In exces OF
reserves set up to meet them, leaving
balance in the earned surplus account
at December 81, 1920, OF $685.
602.2 "a.
mo reserves were set up for the
federal income and profits taxes dur.
ing the year. as earnings were moi
SUFFICIENT either in this or the previ.
} Gus year to incur any assessments or
/. this account. A demand has been
J made, however, by the government
: that revised income tax returns be
fled for the year 1918, which may
I indicate the necessity of some adjust
ment of a payments for that year.