The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-02-02
OF THE MINES
OF NEW MEXICO
By JAMES r. FlNLAY
SECTION 4
GALLUP AMERICAN COAL COMPANY OF GALLUP

NANAta0A WI
This tu'rrrrirr hHsFu lI,rutrs
July !. tai7. its predecessor the
Victor American coal company had
been operating previously hut iS rrp-
ord has not been reported The pres
ident ct the present company how
ever has stated TO me V"rlAuN Wit
their only reason tor uklug over the
Victor American was thal thr ltttNr
company was financially tIuhuFr'S-
-cd and either unable 90 unwilling tee
furnish the capital needed iu gt',tr-
autcc u supply of coal required hy ats
principal customers who wcrp largely
the Chino Ray and other copper MINI
inE companies of Arizona and south
srn Sew McNl,u Those companies
decided 60 take over the property 90
Gallup mud GO ou with the production
themselves not with ~ desire to
enter 90, coal business but iu order
To protect their fuel supply accord
inEly they organized the Gallup
American company
Ny reports therefore are for thu
thrc, and one-htlr years from july
I. 1917. to December 4. 1920.
Tons of noal mined ..,...t.2 Esq .sSG
Cash lus- ON coal cNirac-
ton ................S i9s saH
cash expenditure on plant
n equipment ...,....- 7377id
cash expenditure ON prop
erty aud Development i7ai1,
Total eNcr.- of cash cN-
pcnditure over re-
coipt- ............sit1 55tI
Add accumulated Interest
ANlAlN ..H. ... tt. # H -=tHN NV
Total Increase ct liabil-
tiles .sLsso,ati
Less increase OF baancc
Of quick assets ......, 9s.s3.
Set increase Of ilabil-
i;ics ....... ."Sl.b4tl1i
hay. moi thuught o. worth Will,
To follow the "details ~ this opera.
ton further These are the outsiaud.
ing facts Some other transactions
such ns the actual payment of IN.
ter"-t ON bonds and tho sale 81 som,
bonds OtNN % par ,nlucl of the Vic
tor American coat company go To ud.
on ruhtruci something tu HE assr,'
or Liabilities standing ON the balau,,
shoot. but without changing the per.
sp' i've. The cost 81 mining GOA
wa
sale 81 ~i.2Ss.SSG tons. ... .StNla aGI
Cath loss ON mining tsN.N3'
Total cu.t Of mining .S5.a3g 90,
co.. per tom. str
T,I- is the bare cost Of getting th,
conl out of the ground without any
allowance FOR the redemption uf cap.
ital or the depreciation uf the plants
The company has attempted 90 NAH.
an estimate for those costs under thu
title OF depletion" and "d.prerla.
ton, setting up the ~fullowiul
amounts OF their books
For depletion SI4gi5.
For deprociatiuu ..S825 -.
! venture Geo make the followinl
comments on the theory Of this kin,
81 bookkeeping hrcau-e there D.
some reason go ]apurpheud thar mann
persons imagine depletion and d.
probation to Doe mere phrases thd'
serve some mysterious purposes 30
IN" minds Of accountants tmySter.
iouS persons anyway hut have moth.
ing no do with real money So fl
.s this from the frutl that % Dol no.
too much to say ln.u any IMAM win.
docs not hHvc q Uirar idea uf VIVA.
these terms represent bon hard actual
tiles is carrying on hl- business 10
the dark and vii br lucky luaccG o.
he ESCAPES "a fall
Depletion and depreciation are
however both calculated ugurr- bts
I'd ON the average vNp"rIcnc, Of bus
incss Their purpose BE- Geo show IN.
producer what price he must rarriV,
tor hi product inst to hro3. oven
hat b. thcur'ticullr tu rrfuir nlH cap
itai intact hut guiu nu profit This D.
The iuc hft~"uu gaining HuI Iu.ina
81 The husin'. b. losing 20 d.. uitiou
~ NECESSARY q" do s"u'.H lug q" rem
DIV b.
We may illustrate aI tnf- yer,
clearly Dos consider ug fb, purchaser
usr ui Nlr of tuHuuulIlu. and Ih,
lie 81 th' Wuu who rum thrm I.
ms suuuu-" hat the machine. are q,
Dec run tur business.
\ young man has reached Ih, AZ,
n 30 hHr l"1rnrd tl about autumo
hile- BE- H HlNllful driver anu his 90
t"giiiy BE- hoycni question. lic oithr
has q thousand dollars or ear horro,
az TIE bank for the purpose {,
the calculation ~ his venture
makes no difference. whatever. whic
he duer e he own, the money h
can lend % somebody els" at GOO
security. hr chooses To- use u ia
himself he must make DO earn L
much COS 10 would earn n he lent b
or else lose money hat he might ju,
rs well have had with no cNertlon o
his mart
But fnr our uurp,se bet uS su.
pose that a banker lends hun IA
money and put % the way the bank
~ puts it up 10 the man himself an
In his own words.
Il am going Co. let you have IN.
money for a. long a. you want j
Al We have 10 do is to figure out no,
u will be wi-est for you Ia pay
back. You are 30 year, old aud yer
likely Will he good Tor 80 years NOR
OF hard work. but wouldn't u be be-
ter 10 count on only 2O7'
The customer agrees that II wOul
be.
Then. continues the banker. w