The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-04-07
Has a Comfortable
Cash Balance
on Hand
LARGE ORE RESERVES
Slump in Metal Market Cut
Profits During Last Half
of the Year

TIME REPORT of the Federal Mi
ming < Smelling company fol
the year 1920 makes a crafty
ing showing in earnings, con-
sidering the decline in the price of
lead during the last half Of the year,
and also in ore reserves in the vari-
Gus mines operated by the company.
The chief producer is the Morning
mine at Mullan, in which a wonderful
body of lead ore has been developed
in the lowest levels which promises
to continue for much greater depth.
Other active properties during the
year were the independence near
HALEY and Brewster and Lucky O. K.
in Oklahoma. Commenting on the
conditions during the year the report
says:
THE first half of the year was
quite profitable and satisfactory Be
ginning with the middle of the year
prices of lead and zinc began a con-
tinuing fall until, at the close of the
year they were, relative to cost of
production, at less than pre-war lev
els. The average price of lead in New
York for 10 years, 1904 to 1913, inclu-
sive, was 4.63 cents a pound At the
present cost of producing lead is at
least so per cent higher than during
the 10 years cited. In order for
mines to make the same profit now
as they did in those years, lead should
be selling at over cents a pound
But at the end of the year the price
OF lead had fallen to AIS cents per
pound. and at the present writing
March y, to 4 cents which latter
figure is much below the average
price for the 10 pre-war years cited.
Zinc Same as Lead.
situation with zinc is practically
the same as in the case of lead. AS
consequence, practically all the mines
in Oklahoma and Missouri, including
our Brewster and Lucky o. K, were
forced to suspend operations. During
the continuation of this condition of
less than pre-war prices for metals
and much more than pre-war cost of
producing metals. It can not be OK
pected that earnings of your company
will be satisfactory. But all of its
properties are in excellent condition
and we may reasonably expect that
ultimately the proportion between the /
costs of production and prices OBJ I
tanned for metals that existed prior
to the war will be restored either
through rise in price of metals or
lower costs of production. or part of
each"
Following is a statement of receipts .
and expenditures for the year:
Receipts.
Cash on hand and in banks Janu-
airy l, 1920. $26S,667 ore sales, So
s59.s79; dividends received, s16S,OOO;
company's portion of earnings from
Lucky o. X mines, distributed s7s,-
0OS: return of investment in Lucky
o. X mine $4,000: sale of Tiger
Poorman group 100000; part settle
ment of Hecla litigation, $4,000; sale
of machinery and supplies from aban-
doned plants, s11711; interest on
Liberty bonds, $27.97S; interest on
bank deposits. s1s.s5S: rents and mis-
cellaneous. s19,274; total receipts s4,- Il
25sS7O.
Expenditures.
Operating expenses, S2,1SSS 1855;
taxes s5L44S; general and miscellan-
eous non operating expenses, SIP
SOC: Hecla litigation. SS5,94S; pur-
chase of True Friend group. $ss07
and of Haimdal group, $4,000; ex-
penditures on Pennington Lucky
Jack mine, S63,11O; prospecting and {
drilling sundry options $50 725; con-
struction of Morning club building,
S65.171; materials and supplies.
1898 welfare and social work. {
sS51S; Plummer tunnel, s12I126; re-
Burke power house
fumes. $11,O71. and dividends s719,- (
1877, leaving cash on hand December !
81. 1920 S79466S. /,
Ore Reserves.
Regarding the condition Of mines. I
the report says:
"Ore reserves are shown in the fol-
lowing table Owing to scarcity of t
labor and other troubles ore reserves Z
Of Morning mine are not developed {
as far ahead as is usually the case at
present. Work in this direction is t
being carried on with gratifying re-
suits v
"Ore reserves (fully developed ]
Morning mine-January 1, 1921: I
Milling ore. SOS. 900 tons; lead concen- s