The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-02-22
REPORT FEDERAL NJ. 8 S.
COMPANY FOR YEAR 1922
SHOWS LARGE PROFITS-MANA-
GER TELLS CONDITION
OF MINES.

dent f. II. Brownell is deserving o
commentator for his candor in stat.
ing the facts as they are i'm order thai
the stockholders and the public may
be fully advised of the condition of the
several mines operated by the COM
pany The main features of the re-
port are a brief review of conditions
during the yea and an outline of pol
icy by the president. a report on the
present condition and outlook for the
company's mines by General Manager
Frederick Burhidge, statement of ore
reserves, comparative statements of
earnings in 1922 and 1921. and COM
parative balance sheet for 1922 and
1921. In the course of his statement
President Brownell says
Seeking New Mines.
"Your manap ement has given much
Thought to the condition of the ore
, reserves of the company. Attached is
found a statement by General Mana
ger Burbidge written on this subject
after consultation with Managing Di-
rector Guess from which you will note
that the companys present mines will
probably have relatively limited life
and that the Morning mine has attain
ed great depth, so that if it lasts be-
yond another five years, its costs of
extraction will necessarily increase.
THE management is continuing its
policy of acquiring new mines when
ever opportunity offers and is vigor-
ously engaged in a search for proper
ties of promise and merit Several
ventures are now under considera-
ton.
1.-THE financial situation of the com
pany is excellent, it having cash and
cash assets, including Liberty bonds.
of over S1,5OOOOO and. in a broad
sense, no indebtedness whatever. as
current ore in process of settlement
and current inventories are more than
sufficient to offset current liabilities.
In addition, the company has an asset
of considerable value in its ownership
of stock in the Bunker Hill & Sullivan
Mining & Concentrating company"
Report by Manager Burbidge
Frederick BWbidge. general mana
ger of the Federal, begins his report
/ by naming the following mines oper-
ated by the company: Morning Null
Ian Idaho, producing silver lead and
zinc ores; independence. near HALEY.
Idaho, producing slver-lead ore:
Brewster. Pennington, Dobson and
Lucky O. K, near Hockerville Okla,
producing zinc with some lead. the
last named mine being just over ,he
line in Kansas. Taking up each mine
separately, Mr.. Bmbidge says:
Morning.
THE Morning mine has been work /
ed pretty steadily for about 35 years
since September 1905, by this COM +
pany, and prior thereto by several dir I
ferent owners.
"The ore shoot is one Of the most .
persistent in the Occur d'Alene dis
trict 1t has. within the boundaries Of 1
the company's claims, "A length of $500 .
feet. and the workings have reached E
a depth of 5000 feet below the sur
face.
How much deeper the ore may 90,
it is impossible to tell, but as there are
so far no signs of weakening it is Z
not unreasonable to assume a further
depth of at least 600 feet Assuming
like conditions throughout that should
with present ore reserves. assure us of
a further life of about five years 1t is
possible that the ore shoot may go
much deeper
"The Morning ore is a complex mix
ture of lead and zinc, with siderite
and quartzite gangue It's treatment
has always been difficult; and for
number of years the recovery of the
metal values was very low. With I'M
proved methods, introduced in recent
years, the recovery has been greatly
increased and may be still further i'm
proved.
1.-THE earnings of the mine depend
on many factors, the principal of
which are: The market prices of lead
silver and zinc. the rate of wages paid
for labor the grade of the ore, the ton
mage or volume of business, miscellan-
eous, such as taxes, railroad freight
rates etc.
"One can not forecast these factors
very far ahead and perhaps we can
make no better guess as to the next
five years than to study the results of
operations of the past
1T is of course impossible to make
any forecast of earnings But atten-
ton is called to the fact that since
1918 the average price of silver has
been in the neighborhood of a dollar
per ounce.
1.-THE Pittman act price of silver /
which the mines now enjoy, will prob
ably terminate during the latter half
Of 1928. What the price of silver will
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