Show COLUMBIA STEELS ANNUAL REPORT SHOWS EARNINGS DOUBLED IN A YEAR the annual report of the columbia steel corporation received receiver by local stockholders on the ath instant shows that this project which is one of the states newest industries is is making substantial progress net earnings for the year of 1925 on sales amounted to against during 1924 while the gross income increased aggregating A net income for surplus of was left after deducting income charges for interest on bonds and notes for federal income tax for bond discount and expenses for for doubtful accounts and discount on oil sales for reserve than two and one half times the other small items or more net income for 1924 E creed president presided dei it makes the following report of operations maintained during the companas comp anys prop properties arties were of efficiency expenditures for upkeep state the in a high year addition depreciated in for the year amounting t to 0 increased ted and depletion reserve was precia of added during the year and a renewal reserve 1086 total reserves at the end of the year aggregated increases of an the year 1925 as a steel yeary year it may be summing up of large volume both period characterized as a accurately in production and sales with low prices and small margins of profit ready to wipe out bank loans completed its construction program when the company arranged for bank loans to the 1924 the directors in additional working capital supply to of amount opportunity needs of the companas comp anys enlarged the half meet and a to experience of jf the last year for business the has indicated that this estimate of the required addition to working capital was accurate arrangements have now been completed to finance this sum in in a permanent way by offering ratably to stockholders stock units at per unit each unit consisting of one share of preferred stock and 50 shares of common stock such portion of this offering if any as is not taken by stockholders has been underwritten under written without cost to the company and the success of the plan is assured when it is finally consummated in the early part of april of 1926 the company will be able to discharge its bank indebtedness and attain a current position with current assets from five to lo six times current liabilities iron ore holdings increased the company has again materially increased its holdings of iron ore properties during the year it arranged for the acquisition of additional properties in the iron mountain district about 12 miles distant from the companas comp anys present holdings 1 I at iron springs extensive drilling of these properties disclosed large bodies of iron of excellent analysis for use in the ironton furnace and fineable mine able at low cost it is unlikely that any use will be made of these new iron ore bodies for several years to come but they constitute a very advantageous reserve for the company in the annual report of 1924 reference was made to tile the fact that the parting between the upper and lower coal seams in the columbia coal mine showed signs of disappearing and the probability that fineable mine able reserves of coal would thereby be increased above original estimates further developments at the mine now confirm the disappearance of the parting estimates indicate that fineable mine able coal reserves have thus been increased by 25 to 30 per cent management highly pleased with results considering the newness of the enterprises and the fact that your company pioneered in the development and utilization of the utah raw materials it seems appropriate and pertinent to say that the operations of 1925 have served unconditionally to confirm the conclusions expressed in the 1924 report as to the value of coal and iron properties both from the viewpoint of cost and quality with one exception no additions or extensions to plant or equipment were made other than those incidental to facilitating cili tating our present operations such as increasing oil storage adding a locomotive increasing and improving water supply and similar items the exception involves the installation of a 26 foot billet mile at the pittsburgh plant and construction of a necessary addition to the rolling mill building installation of the new mill will be completed in march of 1926 and operation there commenced about april 1 1926 the cost will approximate this improvement should bring about reductions in the production cost of sheet bar and will increase the range of sheets and shapes manufactured by the company |