What the diggers are doing

Media

Part of The American Chamber of Commerce Journal

Title: What the diggers are doing
Language: English
Source: The American Chamber of Commerce Journal Volume XVIII (No. 8) August 1938
Year: 1938
Rights
Fulltext: August, 19 38 THE AMERICAN CHAMBER OE COMMERCE JOURNAL 23 What the Diggers Are Doing JL472SJ/.4.V; Correction: The July issue of the JOURNAL carried the news item that stockholders of San Mauricio at a special meeting un animously authorized the board of directors to take necessary steps to increase the capital stock of the company from P800.000 to Pl,000,000 and the number of shares from 8,000,000 to 10.000,000, and to per mit Marsman and Company nomi nees to subscribe to 1,500,000 shares of the increase at par. This was stated to be in exchange for the cancellation of the management con tract which San Mauricio has with Marsman and Company. In this re spect. the story was not correct. In point of fact, the management contract is still in effect, and will not be cancelled. What will be can celled is the previous 15 G participa tion which Marsman and Company has been getting in the profits of the mining company. The plan is thought to be bene ficial both to San Mauricio and to Marsman and Company. The latter company will subscribe to exactly 15 G of the total net capitalization of the former (after approval by the SEC of the increase in capital stock), and, therefore, should divi dends be declared, will still receive exactly 15 G of the net profits, as before. However, this 15' ’ < will be paid as dividends, and will not be a charge on the company before dividends can be declared. Thus, obviously, the day when San Mau ricio will become a regular dividend paver is brought closer. In reporting that the management contract will be cancelled, the JOURNAL merely fell in with com mon belief. Despite full publication of the details of the arrangement by both Marsman and Company and San Mauricio officials, the opinion has been general that the former company would bow out as the man ager of both San Mauricio and United Paracale. It must be under stood that this is not the case. COCO GROVE: As forecast in the July issue of the Marsman Maga zine, July production of Coco Grove fell off considerably as regards value, although yardage handled by the two dredges increased. The Marsman organ stated that as was TYPE "ARZ” TOTALLY ENCLOSED FAN-COOLED INDUCTION MOTORS PRO TECTED AGAINST DUST, DIRT, MOISTURE, DRIPPING WATER, OR DESTRUC TIVE GASES. FULLY APPROVED THE EARNSHAWS DOCKS & HONOLULU IRON WORKS P. O. Box 282 Tel. 2-32-13 PORT AREA MANILA, P. I. contemplated in the original produc tion plans, lower grade gravel would be dredged in July. Cubic yards (Please turn to page 30) JUST AS EASY TO SERVICE AS AN OPEN TYPE MOTOR BY UNDERWRITERS’ LABORATORIES Branch Office Bacolod, Occ. Negros Cebu, Cebu IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1938 Furniture and Fixtures:— Cost ...................................................................................... Less: Depreciation ............................................................. P 5,426.88 916.18 4,510.70 Notes Receivable .............................................................................................. 111,287.70 Accounts Receivable:— Southwestern Engineering Co. of P. I., Inc..................... Expenses Recoverable ........................................................ Employees Investment Account ....................................... Miscellaneous ....................................................................... Current Accounts with Brokers ..................................... P 3,950.00 1,217.72 6,111.00 1,017.50 45,212.49 57,508.71 Prepaid Charges .............................................................................................. 11,135.00 Cash on Hand and in Bank ........................................................................... 59,528.29 Dividend Bank Account ................................................................................... 77.82 LIABILITIES Accounts Payable:— Client’s Personal Account ................................................ Nalesbitan Mining Co.—calls unpaid ............................... Miscellaneous ....................................................................... Unclaimed Dividends ............................................................ Current Accounts with Brokers ...................................... Client’s Contract:— Investments Held P906,068.41 P 1,150.26 1,875.00 1,246.84 77.82 76,964.81 P 81,314.73 Benguet Consolidated’s halfyear receipts Jan.-June this year, P7,856,137.10 may be expressed for analytical purposes as 7.86 units. Labor at P745.284 takes almost one unit, about 10%, and supplies at P717,444 take more than 9/10 of another. Add power at P165.238 and miscellaneous mine outlay at P67,000 and you have knocked out two units and P123,000 besides. Taxes at P465.044 take 6/10 of a unit. Bengu’t has left as gross halfyear profit after all expenses or operation are cared for, 5.47 units out of which depreciation summing P3S5,378 and the manager’s bonus of Pl 2'.),507 are taken, leaving something less than 4.96 units or 63% net operating profit for the halfyear. Dividends paid quarterly now take 3.6 units, leaving 1.9 units ac cumulated for future disposition. Benguet is in its twenty-third dividend year. The showing here summarized en tails no diminution of ore-in-sight, the re port to June saying the ore reserve posi tion continues to improve. Since the mine was rehabilitated in 1913, production has summed P84,809,117. Next comes Balatoc’s P73,978,757, next Antamok’s P17,043,445. P 6,860.62 Reserve for Market Fluctuations ................................................................ Capital Stock—Issued and Fully Paid:— 1,000 Common Shares @ Pl00 each .................................P100,000.00 9,000,000 Preferred Shares @ 10 cents each ................ 900,000.00 15,000.00 1,000,000.00 Note: Preferred Stock Dividend Accumulations:— Last Quarterly Dividend declared 1st July, 1937— accrued to date 7*,i%. Surplus:— Balance at 1st June, 1937 ................................................ P 33 756.97 Less: Dividends Declared .................................................. 30,000.00 Loss for year ended 31st May, 1938— CLAIMS SUIT: Another court action over priority rights to work mining claims developed recently when Surigao Mines Exploration, Inc. filed suit against Min danao Mother Lcde Mining Company in Surigao, questioning- the right of the lat ter company to claims in barrio Taganaan, Surigao. AGUSAN GOLD: Has offered for sale a part of its capital stock to its existing shareholders, at the rate of two shares for every five shares now held, at par of ten centavos per share. Two centavos is re quired in cash, and the balance at the rate of one centavo per share monthly until paid, without interest. P 3,756.97 (194,003.29) (190,246.32) P906,068.41 Henry Hunter Bayne & Co., Auditors. Certified Public Accountants. A letter sent to stockholders by K. H. Heniady, president, states that a profit of Pl,000,000 is anticipated from the sale of iron ore from a deposit owned by the company in the Paracale district. The operating company has started work on the construction of a road, houses, and a railroad, preparatory to mining the ore for shipment to Japan. The operating company is bearing all expenses. Another iron deposit, near Aparri, has been of fered to Elizalde and company, which has sent an engineer to inspect the deposit. Two gold properties in Mambulao are being explored. What the Diggers. . . (continued from page 23) handled amounted to 452,055 with a gross value of P163.313 or an average of 46 centavos per cubic yard. The high yardage indicates that an increase in gravel handled can be anti cipated during ensuing months. Mean while, it is interesting to note that, des pite a comparative low level of gravel work in July, the average for the year to date is about 10% higher than was estimated by the company in its published estimate of ore reserves. Usually reliable sources, according to Hess & Zeitlin’s market letter for August 6th, report that the dredges are now in higher grade ore again, and, beginning with this month’s production, total re covery should increase. The five producing Marsman mines in the Philippines together produced Pl,223,384.90 during July, from 56,826 tons of ore milled, and 452,055 cubic yards of gravel dredged. This output is slightly under Jung, but United Paracale made a new all-time high with P226,539.14 from 9,572 tons milled, and San Mauricio and Suyoc were only slightly under record figures. HAUSSERMANN: The four Haussermann gold producers turned in P2.219,997.12 last month from 79,669 tons of ore treated. This was almost P50,000 over the June figure, in spite of the fact that Ipo Gold registered a substantial decrease in production. Hess & Zeitlin’s market letter for August 11th, announces that analysis by H & Z’s statistical department indicates August, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 that there should be a much bigger spread on the stock exchange board between Benguet and Balatcc stock prices. In fact, the spread indicated is more than Pl.40. It must be remembered that Ben guet, besides being a thumping big pro ducer in its own right, has a tremendous interest in Balatoc stock, and about 407 of Bcnguet’s profits come from Balatoc earnings. Therefore, when you buy a share of Benguet, you are also buying Balatoc stock. During the first six months of 1938, Balatoc produced an average of 36,646 tons of an average value of P29.13. After deducting all costs, including depreciation and depletion, the net profit for the period was P3,489,234, an amount equal to 58 centavos per share on the 6,000,000 shares outstanding. This is equal to Pl.16 per share on an annual basis, and compares with the 1937 profit of Pl .09 per share. During this same period, Benguet pro duced an average of 35,809 tons of an average value of P28.27. After deducting all costs, including depreciation, a net pro fit of P5,050,773 was reported; an amount equal to 84 centavos per share on the 6,000,000 shares outstanding. This is equal to Pl.68 per share on an annual basis, and compares with the 1937 per share pro fit of Pl .48 per share. Of the total profit, an amount equal to 38'/2 centavos per share of Benguet represents dividends re ceived from its stock interest in Balatoc. Ore reserves of Ipo, as computed by that company’s managers, have increased tremendously. At the end of 1937, ore reserves were estimated at 44,030 tons of an average value of P10.70 per ton. On June 30, however, ore reserves were esti mated at 77,867 tons of an average value of P17.39. This means that Ipo has suf ficient calculated ore reserves to run its 200 ton mill for more than a year with P17.39 ore. In addition, the mine man agers say “we have every reason to be lieve there is a substantial tonnage of ore below this level.” RALSTON: Benguet Exploration passed its June production figures last month, while Demonstration was slightly lower. Benguet Exploration turned out P27.564, while Demonstration produced Pl 52,533 from 9,078 tons of ore treated. Demonstration has paid dividends for two and a half years at the rate of 4 cen tavos per share. Earnings this year to date, and the financial condition of the company at the end of the first half of this year indicate that an extra of 1 cen tavo will be paid, according to the statis tical department at Hess & Zeitlin. Mr. Conrado Garcia, sales manager of the Manila Machinery Company and con nected with that organization for many years, passed away last month. His death is a distinct loss to his company, and a source of deep regret to his many friends and acquaintances. SORIANO: Masbate Consolidated, by far the largest lode gold operation in the Islands in point of tonnage, established its third consecutive monthly production record in July, with an output of P357.301 from 74,104 tons of ore treated. This is a gain of about P15,000 over the June figure. This makes an average recovery of P4.82 per ton, which is slightly higher than the average for any one month this year, but exceeds the 1937 average by only 3 centavos per ton. As was anticipated, Antamok fell off in production last month, due to the fact that it was working lower-grade ore. The mine produced P391,787.57 from 24,831 tons of ore treated, as against P402.322.63 from 23,606 tons in June. Should Antamok continue to encounter lower-grade ore, controversy may be ex INTERNATIONAL INDUSTRIAL TRACTOR International Industrial Tractors have long been identified with the con struction industry—they are pioneers in the development of the roads of the nation. They had to be good; they had to have the stuff to be able to stay in this business. They arc the choice of road builders and contractors because they have proved their performance, their efficiency, their economy. They are backed up in their work by unusual after-sale service. The International Industrial Power line includes wheel and crawler tractors (kerosene and Diesel) and power units for stationary work from. 12 to 110 maximum h.p. (ke rosene and Diesel). Write us for prices, specifica tions, and other de tailed information. Model TD-40 ivith Bullgrader INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES CEBU MANILA DAVAO ILOILO BAGUIO BACOLOD CAGAYAN, OR. MIS. LEGASPI pected to arise over the wisdom displayed in investing Antamok’s reserve for ore depletion in Antam-IXL. While a reserve for depletion is entirely arbitrary, and is really no “reserve” at all, in the strict sense of the word, still it is a back-log that it is nice to have. For instance, a nice depletion reserve may enable a mine to continue paying its regular dividends during a temporary period of smaller pro fits. However, we understand that Anta mok has encountered higher grade ore at deeper levels, and that this ore may be milled in two or three months. In April and May, the mill heads were even lower than in July. The average for July of Pl5.77 per ton compares with an average for the full year of 1937 of P20.61 and (Please turn to page 44) Makes Quick Work of the Tough Jobs IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1938 previous month. In the foreign exchange market, the pound sterling was characterized by gen eral weakness. The causes are largely attributed to the following: Rumors of a possible dollar-pound relation nearer the old parity, growing adverse balance of pay ments in the trade of England and the pres sure on the sterling brought about by active gold buying. Opening at 4.95-11/16, the pound weak ened sharply as the month advanced reach ing a low of 4.91-% during the first part of the second fortnight, after which it re covered slightly although weakening again toward the end of the month, closing at 4.91-%. Heavy offerings of French Franc for the purchases of gold coupled with uncertainty as to the fate of this currency after the expiration of the Daladier government’s plenary powers again brought uneasiness to this exchange, necessitating intermittent intervention by the French Control and the British Stabilization Fund. Opening in New York at 278-% it reached a low of 275-%, recovering slightly thereafter and finally closing at 276. The yen also weakened. Opening at 28% in Kobe, it reached a low of 28-%, clos ing at that rate. With a view to reinforc ing Japan’s foreign exchange position, ship ment abroad of Y300,000,000 from its gold reserve was authorized. Shanghai moved between a high of 18-%, the closing rate of the previous month and a low of 17-17/32. The announcement DEPRESSION PRICES of made regarding extension of the United States understanding for the purchase of Chinese silver had a slight momentary steadying effect. In sympathy with sterling, Hongkong also weakened. Opening at 31, it reached a low of 30.72, closing at 30.78. What the Diggers. . . (continued from page 31) an average for the first 7 months of this year of Pl 6.80. According to production results for the first 7 months of 1938, IXL should report larger earnings this year. During the first 7 months, it produced Pl,834,256 from 77,132 tons, which is an average value of P23.78 per ton. This compares with 49,860 tons with a value of Pl,194,431 or an average of P23.95 per ton, during the same period last year. NIELSON: Paracale-Gumaus registered its usual substantial increase in production last month. This new producer turned out 3,213 tons of ore in July from which P47,051.74 was recovered, as compared with June figures of P45,513.00 and 2,544 tons. Lepanto, probably the Islands’ most im portant copper property, produced copper concentrates valued at P92.070 from 11,800 tons of ore. This is a P17.000 increase from the previous month’s total. Hongkong Mines, Ltd., produced P58.312 in lead and silver concentrates from 3,821 tons of ore milled and treated last month. This production is up about P3,000 from that of June. Total production for 1938 to date is valued at P296.170.12, according to the Manila office of the Nielson in terests. Tinago Consolidated also registered an increase in gold production over June. As we went to press, exact figures were not available. L. R. Nielson has moved his brokerage offices from the ground floor of the Samanillo Building to the Crystal Arcade Building, which he manages. DAWSON WHISKY Sugar—Copra—Tobacco Mining Shares often necessitate a reconsideration of personal expenditures. Life insurance should have a low net cost to meet the situation. Consider the Occidental Life Commercial Life contract for PIO,000.00. You pay, each year, At age 35 — P255.7O age 40 — P300.70 age 45> — P362.90 Term insurance, as a temporary measure, is available. The annual premium is very reasonable. Inquiries will be immediately answered. WITH ANY MINERAL, IS THE SAFEST AND MOST SUITABLE BEVERAGE IN THE EAST OCCIDENTAL LIFE INSURANCE CO., L. M. GIANNINI, President Fidelity & Surety Co. of P. I. 472 Regina Bldg. General Agents Tel. 2-17-59 OF CALIFORNIA E. W. Schedler Life Manager Ya Peter Dawson SFtOM SCOTCH WHISKY 3MITH,BELUfCQLTD. SOLS DIJTIISVT«M FOREIGN EXCHANGE REVIEW COUNTER RATES U.S. Dollars Sterling High Low High Low July 1938 .... 201.50 — 201.50 1/11-15/16 — 2/0-1/8 July 1937 .... 199.75 — 199.50 2/0 — 2/0-1/8 Francs Yen Shanghai High Low High. Low High Low Hongkong High Low 5.80 — 5.75 58.70 — 58.30 39.75 — 39.50 62.90 — 62.45 7.90 — 7.55 58.40 — 57.90 59.65 — 59.25 61.75 — 60.90 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE ■ JOURNAL