Show I HOWN i BY 8 COg CO COI a I I f R THI D DI I I i Net Profits of Utah Concern II Almost Less 1 Than Second Period of Sold 1917 Little Metal the first time in its his his- history history history FOR tory the Utah Copper comi com com- company I pany according to the report of I the management for the third thir quarter of 1917 shows a deficit I over its previous earnings The report report reI re re- re- re and will be beI completed today I port was vas submitted to stockholders of the com com- pany I Although the thenet net profits of the company company company com com- pany tor for the last three months are almost less than in the secand sec second sec sec- ec- ec I ond and quarter of this year the report shows an increase of almost in disbursements to stockholders Forthe For Forthe Forthe the second quarter of the year there was a net surplus of while the surplus column for the last quarter is blank and an item of 3 Is listed as a net deficit It is not to be construed because of the deficit that the company lost money in the last quarter The report report re report re- re port shows tons more ore were milled than in th the preceding quarter The average cost a pound of net copper copper copper cop cop- per produced from concentrates in the quarter was 1396 cents increase over the cost of the second quarter The Tho report explains that this comparatively comparatively comparatively high cost of production was due partly to the heavy charge made mado against op operations r sef for increased state in and federal taxes a partly Y to t. the Inand Increase increase In- In crease in wages which became effective effective effective tive July 1 1 and partly to the low grade of ore The report explains that comparatively comparatively little copper was sold in thelast thelast the thelast last quarter although considerable more was milled in that period The unsold copper on hand and andin in transit is inventoried at 13 cents a pound I I instead of 23 cents a pound which will be realized for its sale All the I II j copper has been sold since the govI government gov- gov I I fixed the price of 23 cents gOV 1 I a pound and when the comp company's nys ny's profit profit pro pro profit fit of 10 cents a 11 t pound is added the deficit will be absorbed I The following tabulation shows the financial results of the company forthe forthe for forthe I the last qu quarter as compared with the tho second quarter of the year Third Second quarter quarter Net profit from milling operations operations operations opera opera- 1030 Other income rents etc In Utah Income from Nevada Cons Copper Co I dividends iSOO 00 Income from Bingham Garfield Ry fly Co CO dividends 47 OO OO Total net pro- pro pit Disbursements s is' is to stockholders ers era d 1 6 5 Net loet surplus for tor second quarter quarter ter r N Net deficit itt for third Continued on page 4 I I I I DEFICIT SHOWN Continued from page 1 f The huge deficit in the earnings of ot the company for tor the last quarter IsI is fully explained In the following cx ox ox from the report The earnings for tor th the third u quarter rt r I Iare are computed on the basis of I cents for copper as as compared with wih I cents centa for tor the previous quarter I Tho The unsold copper on hand and in I transit is is according to established custom cus cus- I cus-I torn tom lr carried In our Inventory inventor at 13 I cents cents hd This is the first quarter quarter atC ter for over oVer a I year in which there has been any ani substantial increase in the quantity of copper available for delivery delvery de do- livery lvery and unsold This accumulation of ot unsold copper copper copper cop cop- I per which is inventoried at 13 cents a pound is responsible for the low average average av av- av carrying price shown for the quarter and taken together with wih In Increased Increased increased In- In I accounts creased operating expenses for Cor Gle J ie e decrease in calculated earn- earn I ip s. s The increase of unsold copper copper is due to the fact that during this particular I lar quarter negotiations between the copper copper producers and the United States Statts government were In In progress to determine upon future l handling of copper sales and as a result resul sales at definite prices were practically suspended suspended suspended sus sus- not only olly to the government but to other othor users FOURTH QUARTER TO BE BETTER Since the end of the the thc quarter the price having been fixed by the government gov gov- at 23 2344 cents the government I committee is daily daly placing contracts I with wih the le various arious producers ers and your management is advised by its is sales agent that that all an copper opper due for tor delivery delver to the tho end d of the tho year has been leen sold arT antT therefore the unsold copper appearing appearing ap ap- ap- ap in this report is a purely temporary tem tern condition The earnings for forthe forthe forthe the fourth quarter will wl therefore show in fl addition additon to those arising from production production pro pro- of ot that quarter the profit from the sales at 23 cents of the unsold copper carried in this quarter at 13 cents I IThe The regular quarterly cash dividend of ot a share was paid on September Septem Septem- ber her 30 During the quarter there was also paid a Re Red fled Cross dividend of ot 50 60 cents a share In the period there was removed a total of cubic yards of ot capping capping cap cap- ping pin as compared with cubic yards the second quarter of 1017 I being an increase of 1470 cubic yards j The average a month was cubic yards as compared with wih cubic yards for the previous quarter I The operations of the tile Bingham Gar Garfield field railway were regular and sat sat- An average of tons of ore a day was and transported an average of tons of other freight was wa handled making a total of 35 3 97 tons a day dy as compared d with wIh 35 lOG ter tons a a day for or the preceding qua |