The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-04-06
CALLAHAN ZINC-LEAD
ANNUAL REPORT, 1921
BORG is OPTIMISTIC
In Good Financial Condition.
Manager Newton Tells of
Development Work

A THOUGH the Callahan mine
~ was closed down throughout
~ the year 1921, the report OF
John Borg. president of the
Callahan Zinc-Lead company, covering
that period is highly interesting and
shows the company in excellent finan-
cial condition and the mine itself in
condition for immediate production as
soon as metal conditions Justify. The
report is issued in the usual handsome
form. As a center piece there is a
double page view of the company
! buildings and residences of employees
at the Callahan mine. On the page
preceding the presidents report there
is a fitting memorial adopted by the
directors on the life character and
works of the late James F. Callahan
discOverer of the Callahan mine, to the.
development of which he devoted his
life. In addition to the presidents re-
port, there is a report by c. w. New
ton, general manager and financial
report by H T. McMeekin, treasurer.
In his report President Borg reviews
briefly the conditions which made it
necessary to suspend production on
October 81, 1920. conditions which
have continued up to this time. Con-
tinuing the report says:
Maintenance of Properties.
Economies were effected in all de-
partments. though the conservation
maintenance of surface buildings, I'M
derground workings and equipment
have in no manner been neglected in
the period during which such savings
were established. Two crews have
been kept constantly employed replac-
ing weakened timbering and maintain
ing underground workings in condition
for resumption of operations at short
notice.
Underground Development.
Operations in the mine have con-
sisted of sinking the main three com
partment shaft an additional 200 feet
from the No 10 to the No IL level
cutting a total of 1900 feet of lateral
openings, 12O feet of raises and 1000
feet of diamond drilling.
New Properties.
IN order to facilitate operations, il
was deemed advisable to effect con-
solidation of the Chicago Boston and
the Kill Buck properties. The Galena
Mining company was therefore incor-
porated, with a capitalization of 3d.
500, 900 (par value $1,000, and it's stock
was exchanged on a share for share
basis, for Chicago Boston and Kill
Buck stock The Callahan Zinc-Lead !
company owns 1,551,O5S shares, over 81 |
per cent of the total authorized CAPT
of the Galena Mining com
pany. Your management considers this |
an asset with great pOtentialities. The |
is more fully described in the
accompanying report of our general
manager.
Metal Markets.
During the past year metal markets
have been rather disappointing. In
spite of a material reduction in sur
plus stocks Of metal in the hands of
-efineries and smelters, the market
price for zinc has shown slight, if any
1t is generally believed
however, that conditions and prices will
improve during 1922, for it is the con-
iensus of we'll informed opinion that
revival of vast proportions
will start in the early spring. One
deterrent factor which may curtail this
building program somewhat is the
high cost of labor in the building
rodo- A ,roparo1 ro1rixra1 Of building
md it's resultant large consumption of
zinc and lead, should be followed by a
'apid advance in the market prices for
hese metals. 1t is, therefore, expected
hat a normal ratio between cost Of
production and the selling price of our
product will be reestablished, and thus
permit the resumption of shipments by
,our company.
Financial.
AT the close of 1920 the company
vas confronted with the problem of
financing it's current liabilities and its
operating expenses for 1921. This was
accomplished during the
current year through sales of treasury
stock. AS a result of such financing,
-our company, after meeting an opera
ing deficit Of 1856. 27S.SO for the period, {
las netirely liquidated all financial liza
,ilities aside from current accounts
md bills payable, amounting to S12,- {
346S. This compares with current liza
,ilities of S164S1S.O4 at the end of the Z
preceding period. and is a reduction Of ]
2 per cent in this item. s
During the same period excess of I
urrent assets and mining investments
to S5O4.044.19 at the end of I
921, which compares with s279, O55.1S I
t the end of the preceding year. this {
eing equivalent to an increase Of so