The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-07
GREENE-C ANANEA DEAL.
Consolidation Terms Both Criticised
and Justified.

Here and there notes of disapproval of
the terms upon which the Greene COnsol-
iGated directors sold out to Messrs Cole
and Ryan. are heard. says the Boston
News Bureau.
In the main. objection is raised: First.
because of the fact that in the CONSOLE
OF current assets, an enormous tonnage
OF ore lin sight an equipment costing
millions of dollars. vast ownership in
timber lands railways etc. was put in
at only S20OOO.0O0 in par value of new
stock. while the Cananea-Central without
equipment. or any large amount of open
ings(having been bought by Cole and Ryan
within the past wear for $500 0CO) was
put into the combine st $20.000,0O.
The second cause for complaint is Messrs.
Cole and Ryan are permitted TO take to
tbs mselves 100000 shares OF fully paid Can
anea-Central stock from the treasury of
the Greene Co. at $50 per share. BY fully
paid is meant that the 100000 shares in
question are not subject to a further call
Of s. per share which will be levied on
the remaining 100000 shares recently
quoted at $40 per share.
Those who would Condone the action of
Greene directors in selling out as they did
to Messrs. Cole and Ryan take the posi-
ton that the Greene property as ii was
being financially and physically operated,
was heading toward the rocks. They
claim that Colonel Greene had given evil
dcnce that the problems to be solved were
too much for him. He had demonstrated
that he was unable on high copper mar
ket to make the property earn the small
dividends paid and that he was involving
tho proposition more heavily every day
His final effort in financing his money
requirements was to be through the sale
of 10000 shares of stock 10 stockholders
at S25 per share. Such an attempt, it is
alleged, would have put the stock below
So per share. Instead MeSsrs. Cole and
Ryan, cognizant Of Colonel Greenes nee
essities. offer TO consolidate with one of
their properties. supply needed financial
assistance and take the management.
Those who approve of the consolidation
the terms were equitable is the fact thai
the public bought Greene Consolidated
stock up to So per share when It was
learned that Ryan and Cole instead of
Colonel Greene was TO manage the pro-
Derty. These men. il is held would of
unless they saw something in it for them
They were looking for their profit and
the Greene stockholders have shown by
by the stock market action Of Greene
shares that Cole and Ryan are entitled
to all they get out Of it,
Regarding the sale Of 100000 shares Of
to Cole and Ryan. those
who believe this was q wise and fair
transaction state that the cost of these
shares TO the Greene Copper company
was only a nominal amount and that
while the directors were criticised for put
ting balance sheet value Of 81 900 900 on
II. they sold il for 81. 0O0000. II is further,
argued that a forced sale of 200 600 shares
would not have brought half this sum. and
mat theretore Cole and Ryan cannot be
accused of taking advantage of the Greene
stockholders by apprOpriating a part of
ther treasury assets at fair price
IN snort those who would Justify the
action OF the Greene directors claim that
the RYan-Cole management was worth all
" cost and that the stock market proves