Show MINING AND OIL NEWS I Edited by Ira ITa C. C Tichenor Tichenor ROT REGRET E EXPRESSED OVER o V E R NECESSITY OF ASSESSMENT First Report Since Reorganization Reorganization Reorganization Issued by Mon Mon- Bin tana-Bin Bingham tana-Bingham Co R Regret bet Is expressed by President C. C G. G Ballantyne of ot the Montana Consolidated Con- Con Mining company In tho the first report port issued since the te reorganization over o er the necessity of ot making the tho assessment cf ct 10 cents cent a share recently announced In this connection the report e says cays s 's Your Tour directors regret the necessity of ot levying this a assessment yet at In view of ot otte the te fact tact that the te articles of ot Incorporation tion empower them to do so 80 they feel tee they would have bave been remiss In the performance per per- of vt their duty had they failed to take timely action to protect the stock soca- stockholders stockholders' stok- stok 1 holders holders' equity in tho the company company's prop prop- I erty The Te financial conditions existing at this time throughout tho the continental United Stae States mako mao it I Impossible to raise any considerable amount of ot money either by loan oa or otherl otherwise c and as D small ad advances advances ad- ad vances vance even if I they ther could have havo been ob obtained ob- ob tamed would not effect the tho purpose the directors have In view view namely namely to place the property In the profit paying c class s as a soon coon Eon as possible possible and and meanwhile protect tho the stockholders stockholders' Interest against credItors creditors cred cred- the tho assessment therefore however much to be re regretted eted was as the only alter alter- native Assuming for the tho to moment the thea a assessment had ha not been levied that suits i had been Instituted Judgments obtained and tho the property sold under uder execution to tc the tho utter loss of ot every CI C stockholder what whal possible Justification could the directors I plead for neglect of a duty so clearly cearly if It I not le legally ly devolving upon them While the tho developments on the kee and nd Valentine properties havo have demonstrated demonstrated dem dem- their value as mining propositions tons It I Is not proposed to expend an any money on them In the near future but rather to allow aHo them to remain as the they are until unU tho other big development has p I been completed and brought Into a a divi paying basis bis Tho The following statement shows show the financial condition of ot tho the company as of ot April AprI 1 1 1918 Capital l It stock k authorized 30 00 0 shares of ot othe he he par pr value lue of ot 1 each ASSETS Mine properties I Tunnel developments development and water water wa wa- wa- wa ter facilities l. Mine and mill mi buildings equipment and sundry Plant Stocks and interest in net or ore or returns of ot the Amalgamated Copper Co I Accounts receivable II I Ore In transit and at t smelter I General office equipment Cash Ca In office oC lc Total I LIABILITIES Capital stock clock outstanding at at par value 2 I Assessments paid In prior in-prior prior to aMe assessment of or March 18 18 1918 Bonds ou outstanding Bonds Bond in escrow Bills Dils payable Accounts Aunts payable Ible Contracts t. t Balance Bance due on cont contracts 1 for purchase of ot mining properties proper proper- tle ties Accrued Interest on payment due on Fortuna mine Overdraft on treasurers treasurer's account account account ac ac- ac- ac count Net Ne present worth orth Total From the te liabilities labite side elde of ot this statement state state- ment it I will wi be seen Been that after deducting the liability to the stockholders made up of stock outstanding three stok assessments assess assess- ments levied several years yeas ago and tho the present prent net worth orth aggregating there Is a balance of ot liability against the company of This Is Js not aa ai serious as might appear at first rat fl right night ht as a made mae up as foil own Bills payable J. J a Contracts Payment account Fortuna Fortuna principal principal prin prin- cipal Payment account Fortuna Fortuna In Interest In- In interest terest Payment account ut group GOp Payment rayment account Valentine group Accounts payable Bank overdraft wI will be bo taken care of at out of ot tho the proceeds proceeds proceeds pro pro- of the th assessment and leave a eve working fund of ot The balance I cf of t liabilities IB is made up of ot bonds outstanding bonds bond in escrow to ta secure payment on tho group balance balanC on Fortuna group SoUP payable pay pay- able in 1919 and 1920 1820 and due Honolulu parties partes on six six months' months notes for tor moneys advanced in February last 25 The balance to bo be paid on the tho For For- or- or tuna tun mine i is payable l I January Januar 1 1 1919 Jul July 1 I 1 1919 25 2 COO January 1 1920 InO and July 1 1920 all al of ot these theBo payments payment aro arc to be by bl taken care of ot out of ot net pet earnings Bond Bonds 17 due June Juno 1 1 1918 1913 it Is II proposed i I to have tended extended to June Juno 1 1 1919 when they wilt will wJ be paid by tho the sale of ot BO so mud much k stock lock tok as ma may be bo necessary In excess o of ot f available ble cash th the stock stol in the mean time having acquired a a substantial value S by reason of 01 the company's excellent I financial condition and mine prospects and end Bonds In e escrow erow ro will wi be bo relea released d I returned to the treasury treasur upon pay pay- ment of the balance balanc of ot on n mm or tao tho purchase included In tho the foregoing statement showing the dis die position of ot the proceeds of ot the tho assess m ment nt This loaves leave only advanced assO by Honolulu parties partes due August 14 1 1918 1913 The The notes covering this advance carry tho the privilege o of or taking tock stock tock of 01 25 cents carr per share hare in lieu leu of ot cash and as the iho stock Vel at the due date of ot these notes will undoubtedly edly be bo worth considerably more wi than this price tho the company can either deliver the stock If note holders delver i holder should elect to ac accept ac- ac copt it It or sell sufficient to redeem the obligation Tn There Thero r Is la now In the treasury treasur shares Copper C opp e r Demand De and Is Now Urgent Urge nt Large Producers Holding Back Small Sm all Mines Sold S oH Far Ahead A he ad f nj I HE JIB demand for tor copper is s growing I I stronger and more urgen urgent t from Irom da day dayto to da day Industrial consumers apparently apparently ap ap- ap- ap are unable to secure as 38 much of cr the metal as s they want at the tire fixed price of or 23 cent a pound The large producers aro are holding back lack a considerable considerable con con- portion porton of ot their output with a aview aview view 10 to being prepared to supply government gover- gover government govern govern- ment requirements In full tul Some Somo of 11 the small mines have havo been seln soiling selling quite freely treely and anti now find tod themselves sold up so far ahead that the they hesitate to make further con contracts tracts The volume of oC production has not been up to tho the expectations of ot the buying in In- In Few of the bl big mines are aro in a position today to produce at full lul volume Labor Is both scarce and inefficient More lore or less les dela delay Is I experienced nil ni the tho time in securing supplies Lack Lck of 01 transportation transportation tation facilities which has been made worse worse b by the tho embargoes which give preference to certain kinds kind of ot freight al- al uh 1 S. S Vina f kt f T 1 Arl n HlA th h. h nf nt nf nr hill bul 1 I i nu l lion ion from froni the In the West Vest to toI the refineries in the East Eat Tio Te fact tact should be known knon that a year rear or two ago when the price of ot copper was I above 30 0 cents cent a pound man many of ot the producing producing pro pro- companies b by doing everything In their power to supply tho demand drew heavily on their developed eloped reserves of ot high grade Sade ore There was a I labor shortage short short- age ace at a that tat time and it became necessary short short-j to defer deler advance ad developments In order to keep all nU the men available at work mining milling and Imeln smelting ore ores Now quite a a number numb r of or mines are finding it necessary to do 10 eo more development work t to o mako make up for tor lo lost t time and this Is re reflected reflected re- re In a n reduced volume of ot output Exports of ot copper were er smaller in February Feb Feb- dun clue eu to lack Inck of oC ocean tonnage Few people realize what a tremendous volume of 01 copper has been exported during dur dur- ing ng tho the past paRt two years Tho The worlds world's pro pro- production I dur-I production ro- ro WAS ap approximately r. r I e 43 20 O p in II ann uia a um in 11 n s seems that something more than one half o of ot f this total or around pounds p was wa exported from tho the United S States tates in tho the form of ot o refined copper In b bs bas brass rass and in various manufactured s shapes hapes About 57 per cent of ot the worlds world's copper coppers i Is s produced in the United States IncludInG Including I ing InG ng Alaska and only a a little less eu than o one half of ot the remainder comes to this c country to take advantage of our superior r refining facilities Therefore we wo have a around round pounds of 01 the metal por lor f or homo home consumption and export export After taking care caro of ot tho the export demand last y year er ear this country countr apparently had less t han than pounds of ot copper or a bout about abut pounds per month for tor h home ome uses As long ago aGo as 1912 and 1913 t this his country's annual consumption of or new c copper opper was around pounds per perear y year ear car and then tho the government was not t taking aking or pounds per par month for tor war uses as a It is 11 reported to bo be d doing doinG now Of Ot course It is possible that the de decreased decreased do- do c creased output of so o called cled will wi release sufficient labor tabor to make possible pos pos- s sible ible such an Increase In the production o of f copper that all al needs can be supplied it t the present fixed price of ot 23 2314 6 cents cent a i round pound The Tho recent trend tend however seems t to o Indicate that considerably more copper will wi be required and that to stimulate production It I will wi become necessary to a advance the thc price somewhat This Is a matter mater however which tho the copper com corn committee n of or the government and the producers prou- prou c cers ers o ha fully luBy In hand and action acton undoubtedly un un- un d cd will wi be bo taken when and if Ir it b becomes apparent to that committee that t the ho he present arrangement Is la falling failing to b ring bring the dc desired results The producers u undoubtedly undoubted I Bro are looking ahead and mak- mak I CAPITAL OF EAST BUTTE CO IS INCREASED I Treasury Treasur Stock Is Issued in Exchange for Copper Stock The annual report of ot the East Est But Butte Copper Mining company for tor 1917 shows net surplus from Irom operations of 01 equal to per share shar compared with wih or 3 0 per share In 1916 1918 During tho the year shares chares of ot treasury treasur stock were 1 issued In exchange for tor shares of ot Copper company stock stok bringing the outstanding capital of ot the East Butte Butto Bute up rip to shares hares Operations Operations Op Op- aro are compared as follows 8 1010 1917 Tons or ore mined Average a assay sy value pet Cost mine per ton mci devel Total tons oro ore treated Pounds Pound copper products Ounces silver er products Oun gold products 1825 f product Gross Cross Gros Increase Total costs coats Balance Less Leas ore and LeI Int mt lt 1 Less add to equip exp and dev ls Net surplus e. e Price per pound copper Cost Coat production per Ier pound The account exploration and development development develop develop- ment has been wiped out by being charged into operations Surplus account shows a decrease of or to owing o to tho the fact that both 1916 and 1917 dividends amounting to were paid and charged chanted to this account during 1917 Tho The Copper company bonds In the tho amount of ot h have we during d tho the year ear been turned over o er to that company as al applying Ing on rentals and In addition additon rentals ren ren- tai In the amount of or have been paid to the tho Copper company and the tho same amount has been received from that comp company ny as cumulative dividends on Its preferred stock mok held hed by E East t Butte Butto Huto Owing to an advance in wages and the cost coat of ot materials with wih de decreased decreased de- de creased efficiency of or labor tho the cost of ot mining advanced from 6 5 per ton In 1916 to per ton In 1917 or 52 per cent The Tho co cost coat t of smelting has for tor like reasons increased very ver materially In the meantime the higher average assay value of ot all ore oro mined namely per cent as against per cent for 1916 has tended to reduce the cost of ot copper per por pound tho the net result of ot the tho effect of or these thee various va various va- va rious factors being an increase of 8 mills mUl per pound In the tho cost of ot copper delivered In New lew York Operations of ot the flotation plant for the year ear were very satisfactory and ad the plant has been extended to 1000 tons lOO dally daily dalT ca cit cit- A plant has haa ha been completed cn for tor returning and retreating tailings from former roner operations This plant Is la now nw treating ton tons monthly and and I. I r re recovering xe- xe covering from corn eight to fifteen pounds of or copper per ton Ing It clear to their associates on the I committee cear that no considerable Increase In the volume of 01 refined copper available for use can be brought about with wih less les than three or four tour months of ot preparation The Tho rapid mado by the German Ocr Ger man aran drive In its Is early stages was WI the i cause of or quite free rree seln selling of 01 stocks of ot all al kinds and tho the coppers receded with wills wih tire the rest of ot the market market In n view of 01 the apparent ant ent seriousness of ot the situation and the tire fact that It came ns as S a I good deal of or a I surprise tho the market maket acted particularly well wel seem seeming In to prove pro conclusively tho tire contention contento that tha stocks had been liquidated liquidated dated quite thoroughly thorough and were In an nn unusually strong position At the present moment t tire the e warring outlook is II an extreme extremely uncertain one and tho the third Libert Liberty loan ioan Ira has hl been an an- an These factors actors together with the comparative tightness t of ot tho the money market con constitute a I bearish situation Tho The opinion is held hel b by some Bore of oC tho most careful students ot of t Investment and spec spec- spec spec- m I A i V ff r I Vint f b bearish irl h hi i factors i arc aro ro offset i et full by the I ver very low prices at which stol stocks are aro Ire sellIng sellIng sell sell- Ing tho contention of oC these students be being belag be- be In lag ing that tha ono one unfavorable development after aler another will wi be required to keep stocks down and that the moment that news becomes more favorable la prices will wI advance This Thil seems to be the most reasonable rea rca and logical view to take of ot the present situation In the tho stock stok market During the coming w week ck or two prices will viii wi bo be likely to fluctuate with the movement movement movement move move- ment of ot the battle batte line lne In western Europe If I It Is pushed farther tarther to tho the west wet stocks wilt will wi be |