The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-12-09
DRUM LUMM0N AFFAIRS
Stockholders to Consider a Scheme
for the Reconstruction Of the
Company.
About a Hundred Thousand Dol
lars to Put the Concern in
Shape.
Fabulous Find of Two Prospsctors In the
Cascades-Progress OF the American
Developing Company.

Shareholders in the Montana company,
limited (the Drum Lummonl. are in re-
ceipt of the following circular from the
sscretary:
I'm forwarding You the accompanying
notice of meeting to consider a scheme OF
reconstruction, / I'm instructed by my d.
~rectors to state that since the recent return
of Mr.. II. T. Bayliss from the mine
the directors have devoted much con
alteration to the present and future pros
poets of the undertaking and to the imam
cial difficulties of the company: these have
been aggravated by the Attachment re-
oentl placed upon the property by the st.
Louis Mining and Milling company. with
which the Montana ompan is In. litlga-
ton. After due md careful deliberatlon
the directors have arrived at the conclusion
that reconstruction has become absolutely
necessary, for the folio wing reasons:
n. The mine requires and Is worthy OF
fapid development if sucuessfut results are
ever to be attained. For this development.
without reconstruction, no funds are avail
able.
80. A stock of stores, such as fuel, quick
silver, etc., etc., must be carried at the
mine. amounting to from tl2,N0 TO 1l5,ooo.
Owing to the interruption of the operations
during the past six months, and the direct
and indirect loss caused by the fire nd
flood OF last spring. the company has for
some few months past been dependent upon
the bankers in Helena for the necessary adj
vances to car y this stock of stores. Owing
to the action of the plaintiffs in the ST.
Louis lawsuit. covering the whole OF the
c~ompany's real estate by an attachment,
the bankers have requested the company to
pay off their loan of Gl5,000. This can be
be lone only by raising fresh capital.
80. In order to fight the lawsuit to an is
sue about sc. 900 will be required to pay
legal experts. witnesses, etc., at the conclu-
sion of the trial. Without reconstruction
this money cannot be found; and unless 1T
is provided, the case would be u~ndetended
and 90 against the company by default. IN
which event there could be no appeal. the
c%ompany's valuable property, machinery,
stocks of tailings and OF stores. would be-
come the property of the adversary ana the
COMPANY would be ruined.
1.-Two methods of raising the required
new capital presented Worcestershire one
by issuing d~ebentures. the other by a recon
structlon of the company. After consulta-
tion with some of the largest shareholders
~ Which, ~ ploRoSn'o WV
consideration, the issue of debentures was
rejected by the majority, and seconstruc-
ton WAS considered the best Iollcy, as
under it every shareholder would be placed
Upon the same footing. it he desired to
retain his existing interest in the
company. Reconstruction involves the
formation of q new company, in which
each shareholder in the Montana company,
limited, will be entitled to one share fol
every share he now holds. These shares
will be issued at It's. I'd. paid, and carrying
a liability of %. cd. er share. 1t is not in
tended that more than ID. per share (paya-
BILE Sd. ON application and Cd. on allot-
1nent) will be called up by the directors of
the new company until the result of the
action of the st. Louis company is ascer-
tanned. Further calls will be made only if
and when required. Considering the past
history, the present value and the future
prospects of the mine, the value of the ma
chinery, mills, stores and tailings, the di-
reotors deem it TO be the true interests of
the shareholders to HEALTHY support the
scheme of reconstruction, and they invite
all shareholders to send them their prox-
ies.o