The copper era., 1904-01-21
GREENE CONSOLIDATED.
Run With an Eye Toward Wall Street
 Is AmaIeamated After Control?
From the Boston News Bureau.

l The long expected announcement ! that the Greene Consolidated Co. iS 10 issue new securities for the purpose of retiring floating debt and paying for ! improvements has become a reality, although the purposes Of the manage meut are not made clear.
 The question Of the bond issue was left by the directors to special com mittee. We understand that s2. S00, 900 short term convertible bonds WI be issued or an amount sufficient to ab- sor0 the 2S0,O00 shares of stock left in the treasury, the issuance of which will make the capital S10,000. 900, divi- dend into 100000 shares of a par value Of sl0.
 A gentleman who is thoroughly familiar with the Greene property and its history says:
 "The trouble with the Greene prop erty is not so much in the property as in the management It has been run l with an eye toward Wall street rather than as a copper proposition. As is usual under such methods, the prop erty has suffered, for it has been over- capitalized, gross extrayagance has ruled with the idea oi quick prOduc- tion and showing, and this policy has resulted in disOrganizatiOn at the property. Dividends have been paid at times when it was necessary to make new stock issues and when earn ings did not warrant.
 Ut is now proposed to issue 5, S00,- 900 of convertible bonds to retire float ing debt and pay for improvements, but there may be back of this bond issue more than appears on the surface.
 "Interests which are friendly to the Amalgamated Copper Go. have large stockholdings in Greene Consolidated, but they have been unable to purchase control in the open market. This con- vertible bond issue may enable these interests to get control of the prop erty, or, failing in that to appear at the right time as creditor and get control in that way. The co Ontinuance of Mr. Greene in the presidency con- firms the belief that Amalgamated in terests are anxious for control, other wise they would endeavOr to secure a management which would work for the interests of the stock holders, not of Wall street. With him in the presidency there is apparently de- sire to keep the price down for pur- ;- ba way it looks to me.
 "The Greene property is man. moth one but it has not as yet been determined whether It is q deep or a been working for quick results and has been running on ores ranging between ; and per cent. and the result is that | these rich ore bodies have been some what exhausted and it will be neces- sary to operate on the poorer ores run n'ng from to , per cent, of which there is vast amount. The profit to the Greene Go. in the treatment of ! these low grade ores depends upon the copper market but with an economical management they could be made to pay substantial dividends on a proper capitalization.
 "Presiiert Greene is heavily in volved in litigation and through him the Greene Co.,. and it is somewhat difficult 10 determine where the Greene litigation ends and the ccm- pany litigation commences. There is a grave question as to the title Of the Cobre Graude mine, the richest of the Greene Co. group. There are POO, 900 shares were pooled by eastern stock holders with the president Of a bank in Phoenix, Ariz., and he was given power of attorney to dispose of it. President Greene succeeded in buying this stock at S2.50 per share. The eastern stockholders entered suit 70 recover this stock on the ground of fraud and collision. They succeeded in getting a receiver appointed for the property in the United States but as the property Is located in Mexico the jurisdiction of the receiver is very limited and the matter will probably now be taken to Mexico for adjud ;ca- tion. Other claims of the Greene Co. are in litigation and the situation is rather complex"