Income and Profit and Loss Statement

New York & Honduras Rosario Mining Company

New York City

For the Year Ended December 31, 1928

Production of Gold and Silver   .................$1,500,233,98

Less: Freight and Expenses on Bullion ..........       57,946,67

Operating Income   .........................................$1,442,287.31

Deduct: Operating Expenses  ..............................       867,906,61

Operating  Profit   ..........................................$  574,380.70

Deduct; New York Administrative Expenses .................       66,387,94

Net Profit from Operations  ................................$  507,992,76

Miscellaneous Income .......................................    165,969,84

$ 673,962,60
Other Deductions  ...........................................      40,886.08

Net Profit Before Federal Income Tax and Provision for Re¬
serves ...................................................     633,076,52

Federal Income Tax  ......................................        36,060,33

Net Profit for Year  .......................................$  597,016,19

Appropriated for Reserves from Earnings—
Depletion   (Based upon  Valuation  of   Mine  at

March 1, 1913)   ...........................$    14137.54

Fire Insurance ...............................         8,114,24

Transit Insurance ............................         4101,23       26,353.01

Profit for the Year Carried to Surplus ......................      570,663,18

Surplus—

Surplus, January 1, 1928 .....................$1,984303.73

Addition—

Adjustment of 1928 Depletion Charges   .......           628.08

$1,984,931,81
Deductions—

Dividends paid and provided........$450,00000

Decrease during 1928 in market value
of   securities   owned   at   December

31,   1928   ........................    79,000,62

Additional Federal Income Tax—1927     1,826,24
Depletion  (on appreciated mine valu¬
ation)    ..........................    14,137,54     544,964.40  1,439,967,41

Surplus—December 31,  1928  ...............................$2,010,63059

NOTE—

— During the year 1927 the United States Government authorized
a readjustment of our depletion account due to certain new dis¬
coveries. 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
depletion entries are made for income tax purposes only.