Western liberal. (Lordsburg, N.M.) 1887-1919, 1905-12-08

upper but NlNONtVh
OF directors and OF officers. This week
IL is able to tell a little more of what
transplred az the meeting OF the stock
holders. When the notices OF the meet
lug were sent out they we're accom-
panied by a blank proxy and a note
from President Gill telling the stock
holder that II he could not be present
at the meeting he could, II he wished,
send bis proxy to any member Of the
board OF directors he wished, and 10
would reach the director II addressed
to the secretary Of the company. A
great many OF the stockholders signed
their proxy and returned IL, putting 10
no name OF an attorney to vote the
stock. BY direction OF the executive
committee the name of W. j. Palmer,
the assistant secretary and treasurer,
was stamped on all these proxies. Mr..
Palmer voted l21,459 Of the 1sS, 1873
shares claimed to be present at the
meeting. Objection was made to these
votes, but the objection was not sus-
tanned. 1t is fair to suppose that the
stockholders who sent Ia blank proxies
did not care who voted them, and
only sent them 10 to make up a quo
rum. The manner OF the sale OF the
metal produced by the company and
the price received was brought up,and
IL appeared that the business OF the
Shannon company was carried on lines
similar to the business OF the big in
surance companies. The company has
a three years. contract with the Amer.
lean Metals Co. to handle its product.
The Metals Co. pays the average price,
as printed in the Engineering and Min.
lug Journal, for this copper. If the
day Shannon metal is sold there is but
one quotation in the Journal the
Shannon gets that price. II there are
more than one price quoted the Shan.
non gets a price equal to the average
Of the prices quoted. This sounds
nicely, but as an actual fact much cop
per is sold that is not reported in the
Journal, and at higher price than is
quoted IN the Journal. For this metal
the Metal Co. may get one price and
the Shannon Co. another and smaller
price. When there is more than one
price quoted the lower price is paid
for a small lot OF copper, and the
higher price is paid for large lots, thus
the sale of a small lot Of copper may
often bring down the average price
materially, to the great disad vantage
of the Shannon company. Bernard
Hochschild, one of the directors of the
Shannon company, and a member OF
the executive committee, which made
this contract, owns 100 shares of Shan.
non stock, and is treasurer Of the
American Metals Co. 1t will he see
that Mr.. Hochschild sells the Shannon
copper to himself, and II there is a
question about the actual price to be
paid he practically settles 1t. No one
would believe that a man bearing the
expressive name of Hochschild would
a question of price give the com
pany 10 which he has put seven or
eight hundred dollars invested, the
better OF it against the company Of
which he is treasurer, and 1t is not
surprising that the executive commit
tee so manipulated the proxies that
the same board OF directors was re-
and the same people will have
Of the selling of the Shannon
metal for another year. The Shannon
is a rich and valuable property.
It's reduction works are modern and
up to date. The mine is 10 charge OF
an able engineer. The reduction works
are Ia charge of a superintendent
ability cannot be questioned, 10
fact he is said to be among the ahlest
Of his time. With the mine all right
and producing about 900 tons a day Of
ore that is higher grade than the aver
age of the Clifton district, the ques
ton is why do not the stockholders get
dividends, as do the stockholders of
other companies? The stock Of the
company is scattered all over the
country, no clique has control by vir-
tue Of owning stock. The control Of the
company is ia the hands OF people
owning 100 shares or less, aud they, II
they could get together, can elect a
board of directories who will give the
stockholders some information regard
log the disposal Of the company's pro-
duct, and in what proportion the pro-
,eeds are divided between the com
Dany and the American Metal COM
pany. 1t is probable, though, that
5he Shannon stockholders are like the
policy holders 10 the big insurance
companies, so dispersed that it will be
impossible for them to get together
ind elect a board of directors, and
that the American Metals company
will continue to have a good thing
through the ownership by its treasurer
If 100 shares OF Shannon stock.
A. w. Hompe, Of Grand Rapids,