39

THE.   SECURITY   AUDIT   COMPANY
OF    NE'W    YORK.

128 Broadway,              New York, Dec. 11, 1905.

To the President and Board of Directors of the New York &
Honduras Rosario Mining Co., New York, N. Y. ;-.,
Gentlemen:

In compliance with your instructions we have audited
the books of account of your corporation at your office in
this city for the fiscal year from December i, 1904, to No¬
vember 30, 1905, and certify that—subject to the valuation
of the inventories—the same are correct and in accordance
with the Balance Sheet and Profit and Loss Account annexed
hereto and forming part of this report. We repeat, however,
what we said in our report for the previous year, that the
ledger account for the expenses at the mines, which we have
audited, did not record the expenses for the above fiscal year,
but for the period from October i, 1904, to September 30,
1905, which is in conformity with the method heretofore
app'ied to this account; also that the inventories of assets
in Honduras were taken October i, 1905. In order to show
the exact financial condition of your corporation at the end
of the fiscal year, the said expenses, up to November 30,
1905, should have been included, and inventories taken that
day, but such a measure would considerably delay the clos¬
ing of the books here owing to the slow communication with
the mines.

The net profit for the year, amounting to $360,561.48,
has been applied as follows:

1.   Payment of Dividends.............................    $180,000.00

2.   Increase in value of

Plant. Machinery, Developments........857,189.93

Bullion, Concentrates, Ore and Supplies

on hand...........................   57.335-2.5

Bills and Account.s Receivable  and Cash

in hand ot Superintendent............    50,920.56      165.445.74

3.   Reduction in Loans and Bills Payable.................        15,115.74

$360,561.48
Respectfully submitted,

THE SECURITY .A.UDIT CO. OF  N. Y.,

(Seal)                                                        GEORGE  WE.AVER,  Secretary.