Income and Profit and Loss Statement
For the year ended December 31, 1927

Production ot Gold and Silver..................  $1,341,300,06

Less: Freight and Expenses on Bullion..........        55,443,02
 

Operating Income  ......................................... $1,285,857,04

Deduct: Operating Expenses   ..............................       867,447.41
 

Operating Profit     .......................................       418,409.63

Deduct; New York Administrative Expenses................        64,819.58
 

Net Profit from Operations ................................       353,590,05

Other  Income   ............................................       138,761,83
 

492,351,88
Other Deductions   .........................................        29,541.27
 

Net Profit Before Federal Income Tax and Provision for Re¬
serves   ..................................................       462,810.61

Federal Income Tax   ......................................        23,343.62
 

Net Profit for Year........................................       439,466.99

Appropriated for Reserves from Earnings—
Depletion   (Based upon  valuation of  mine at

March 1,  1913)   .......................... $    18762.92

Fire  Insurance   .............................         7,070,21

Transit Insurance ...........................         3,570.53        29,403.66
 

Profit for Year Carried to Surplus..........................       410,063.33

Surplus—

Surplus, January 1, 1927.....................    1,956,435.63

Additions—
Increase during 1927
in market values of
securities owned at
December 31, 1927. $ 33,263,27
Sundry Surplus Cred¬
its   ...............        34005.03 $ 67,268.30

Deductions—
Dividends    Paid   and

Provided   .........      400,00000

Depletion (On appre¬
ciated mine valua¬
tion)    ............        18,762,91

Sundry  Surplus

Charges    .........        30,700,62    449,463.53      382,195.23    1,57424040
 

Surplus—December 31, 1927................................ $1,984,303,73

NOTE— During the year 1927 the United States Government author¬
ized a readjustment of our depletion account due to certain new
discoveries. Entries recording depletion as they affect the older
portion of the property are still carried in the general accounts.
Entries recording Depletion on the new discoveries will be made in
a supplementary memorandum ledger account, wherein is set up
the values allowed by the Treasury Department and showing the
actual depletion sustained and allowable for each year. These de¬
pletion entries are made for income tax purposes only.