Arizona republican., 1903-12-01
MERGER
IniunCtiOnAgainst0IdDOrniA-
 ion and United Globe
A Temporary Order Issued on the Petition of the Minority Stock Hold CTS of the Former Company.

Boston. Mass, Noe. 30. (SpeciaD.--A temporary injunction was issued hera teddy. restraining the officers and di- rectors Of the Old Dominion and United Globe mining companies from effectiuS the proposed consolidation of the two companies. The injunction was issued at the instance of a small minority o1 the shareholders of the old Dominion company who objected to tn" cOnsoli- datiOn. There have been rumors for some time that an application would he made for an injunction in case cer- tain shares were not purchased Tt fancy figures. President Smith of the Old Dominion company and the fnan- cial interests back of the consolidation profess to be unGisturbed by today g developments.
 They say that when the hearing of he case is reached on the application for permanent injunction they will De able so show conclusively to the court that the merger of the two corl- panies will result to the financial bene- fit of all shareholders. It was also stated that the improvements under way at Globe, Arizona, would be carried to completion. regardless of today s
 
 interfere with these operations. Under the terms Of the consolidation the PheIps-Dodge interests are to advance $500, 900 in cash for betterments and operating capital. Of this sum S10O,- 900 has been paid in already.
 A broker who is very familiar with the affairs of the old Dominion stated tonight that the shareholders of the old company would be the only sur- ferers were the injunction issued today to be made permanent. As he explained it, were the consolidation to be de- feated the Phelps Dodge people could acquire the control of the old Do- ; miniOn for a considerably smaller cash outlay than the $5OO,O0O proposed in the plan for the merger: that immediately following T permanent injunction the market for old Dominion securities would be so demoralized that contro! could be obtained very easily. This, he stated. is because Of the financial affairs of the old Dominion. Experts regard the mine as more valuable than at any period in it's history, but the company is embarras ssed by lack of operating capital, by lack of capital for | equipment and reduction works. IIl addition to this, the company now as heretofore, finds itself in need or certain class of ore, for economical smelting. This class of ore is found in the United Globe mines, immediately Iadjoining but is not available unless all 1hc properties are under one owner ship. Ii is pointed out that shortly before the project of a consolidation | was undertaken the stockholders Ol l the old Dominion voted to mortgage their property for $75O.OO0 to obtain funds for opening the mine in proper shape and constructing a modern re- duction plant, and that the outlook for marketing the proposed securities was not encouraging. It is urged thai the market would be still less respon- sIve were the merger, scheme to end ir a fiasco It is considered certain that such q great majority of the Old Do- minion shareholders will oppose the | injunction proceedings that the con- summation of the consolidation plans will not be materially delayed.