Salt Lake Tribune | 1918-08-18 | Page 37 | Butte & Superior Decline is Marked

BUTTE & SUPERIOR OECUOIRKEO In Two Years Earnings Shrink From $13 to 44 Cents Per Share. It is difficult to realize that only two years ago Butte & Superior was earning at the rate of J50 per share. In the quarter ended June 30, 1916, the company's com-pany's profits were $3,555,00, or 13 per share, says tho Boston News Bureau. These profits were obtained on a spelter market which averaged the company 16.10 cents per pound. In the quarter Just ended that for June 30 last Butte & Superior earned $128,386 or 44 cents per share on a spelter spel-ter market which averaged 7.26 cents per pound. An accident at No. 1 shaft accounts in part for the miserable allowing, allow-ing, but the real causes for tho breakdown break-down in earnings are the decline in spelter spel-ter and the increase of lX0 per cent in mining and milling costs. At times during the past quarter the price of spelter dipped below 7 cents and the average price of 7.26 cents was the lowest reported .ince the first quarter of - . . 1914. Since June-30, however,, it has ad- f I vanced about 1 cent per pound. In order to appreciate the estraordi- ; nary increase in costs of operation, one f has only to compare the expenses mean- : 1 ured against tons of oro mined and milled, j; For the three months ended March 31, ' 1915, this cost was $4.8ii; in' the thre : months ended June "0, 1918, it was $9.90 "( an increase of 104 per cent. Adding Indirect In-direct or general costs, the expense par ii : ton has .lumped to $11.44. f ; Butte & Superior is one of the lowwt j ', cost producers' of r.iho. in. the country, j thanks to its very high grade ore. The , ' tonnage treated- i-n the Inst three months averaged 16 i per cent zinc, together with :' , a little better than six ounces of silver j per ton. Advancing cost sheets and ft. , declining market for the--product minciJ ' have laid heavy tribute upon net faw- ! ings. No other mining industry has su- '. fered such a complete collapse of earn- '. ing power. , ; Before the war, on then existWig warr ; and material "costs, it was calculated that ; Butte & Superior could pay dividends on 5 cent.- npolter. It ie clearly to he seen ; that today tt cannot break even with th ' metal at 7 cents.