Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1904-06-27
New Company Formed Under the
Laws Of Maine With Capital
Stock Considerably Reduced.
TWO SHARES FOROAE, THE BASIS
Plan Discussed at Recent Meeting
in HartlOrd--NOw Submitted to
All Shareholders

While the trustees who have the
custody Of the 100000 subscribed
by many Of the stockholders Of the Ma
Jcstice Copper Mining and Smelling
company are in this state endeayoring
10 clear Up the Indebtedness on this end
OF the line, the defense committee and
other shareholders Of the corporation
IN the cast, are laying plans for the re-
organization of the company and the
early resumption of development work.
At q recent meeting held in Hart
fcrd, which was attended by members
of the defence committee and n great
many shareholders OF the company
representing over 100000 shares-the
mntter Of reorganization was
thoroughly discussed and Il was de-
cided TO lay before an shareholders
p,an OF action, which provides
for an entirely new corpora
ton to De known as the Majestic
Copper company, authorized under the
laws Of Maine with a capital stock Of
Sb50O,000, divided into 100000 shares of
the par value of $40 each. OF this
amount 2bOO0 shares win be preferred
has already been organized and con-
tract has been entered into between
the new company ana the representa-
ives OF the defense committee and
trustees which enables the defense COM
mittea 60 offer TO an shareholders of
the Majestic Copper Mining and Smelt-
ihg company one snare I'm the new COM
pany for two In the old.
IN circular sent out from Hartford,
ouice OF the company the following Is
contained.
AS there are 1900 stockholders of
the old company to whom this prOposi-
ton Is nude, 1t Is wise that we should
make matters as clear as possible. THE
reorganization plan as before set forth
ohers an exchange OF one snare of stock
IN the new company for two ahares of
STOCK IN the old company, and the first
Thought OF almost every stakeholder
viii be that he Is losing one-half of hls
STOCK by this exchange. Whilst the cap
lta OF the new company is placed al
N5OO,0OO, less than A000,00 Will be is
sued leaving In the treasury upwards
OF 5000 600. Assume now, that we have
IN the old company stakeholder who
owns Sl,OOO,0O0 in shares. IN this case
/ he owns onosixth interest In all the
oompany's property; II he exchanges
this stock for $500 900 worth of stock in
the new company he owns one-elghth
interest In the company property, as
we have no right 10 count the stock
I'm the treasury which is equally owned
by all stockholders, and ON which no
dividends can be declared Clearly
then The loss Is the difference between
one-siXth and one-elghth In other
words he has only lost one-fourth Of
his nominal holdings When however,
1t Is remembered that the reorganiza-
tlon and reduction of capital renders 1t
possible for us 10 bring IN large
amount Of fresh capital by which the
company ~ established enabling It to
go forward and successfully develop
and work its mines. we may all feel
assured that we have not only not lost
% per cent Of our capital but have
greatly enhanced the value OF every
share OF stock that we own
"It may naturally be asked by stock
holders what will become Of the 10O-
000 shares Of stock In the new company
after giving. out 100000 shares for the
stock of the old company. one bundled
thousand shares Of this stock, common
and preferred will be set aside In part
as bonus stock to be Issued to purchas-
crs of bonds and contingent purposes,
and the balance win remain .as asset Of
the company Every stakeholder OF
me Ola company VIII nave an eQuul
chance 10 subscribe 10 these bonds ana
receive his due proportion Of this honus
A statement Of what is done with every
share OF stock Of the new company will
be rendered 10 the stockholders as soon
as the financing OF the company Ia an
accomplished fact
I'VE therefore, confidently put this
reorganization plan before YOU II is
endorsed as fair and equitable by many
having the largest interests In the old
company, and their interest Is precisely
the same In proportion 10 their hold
ings as the smallest stakeholder Of rec
ord. We therefore advise all those hold
ing certificates OF deposit under the
voting trust agreement To endorse such
certificates and get them In by July T.
1904 and thereby 'save themselves from
an assessments against their deposited
stock. An holders Of original stock In
The Majestic must get their stock into
our hands on or before July &c. 1904, IN
order to be parties TO the reorganlza-
tlon."