The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-25
COPPER WAR BREWING.
Heinze's United Copper Co. PrePar'
ing for Clash With AmaIgamated.
CThe Mining WORLDLY

CThe Mining WORLDLY.
The latest move of interest in the cop
per trade is the announcement that the
United Copper company will recall its
: S5,000.OO0 preferred stock at a premium OF
$4,000 for the purpose of making its cap
italization of only one kind of stock. In
its circular to- the shareholders, VICE
President Arthur p. Heinze says:
The following offer is hereby made to
you for acceptance within fifty days
from date at the latest with bonus of
one per cent upon the par value OF Umted
Copper preferred stock owned by you, in
case you accept this proposal by Febru-
airy IS. 1907:
1.-THE undersigned will deliver to you
on May 4. 1907, in exchange for your
United Copper preferred stock, one share
and a quarter of United Copper common
stock. for which y0u may deposit under
this offer with the Empire Trust COM
pany of New York City. who will issue
to you their negotiable trust receipt for
such deposit. specifying the number of
shares of common stock to which the
holder will be entitled upon surrender of
the trust receipt
1.-THE holder will receive all dividends
declared and paid from this date on the
common stock to which he will be en-
titled under this offer, upon presentation
of his receipt on May T. 1897.
The following balance sheet as of jan
uary 81, 1907. has been sent to the stock
holders: Assets-StOcks of subsidiary
companies Including Butte Coalition),
81. 2S1. 269; net accounts receivable, IS, 49,
073; cash in banks. s1.205,7 100; total as
sets, $50 $40. 132 Liabilities-Capital stock
issued preferred. 100000; capital stock
issued. common. S45.000.O00 surplus fund
January l. 1895 Including undivided pro-
fits of 81 Isl S65). $3.S s159; net income,
1907. s.. POS. 702; total. s9.S77. So: dividends
paid, S4.237.500; surplus fund January 81,
1897, $3.50, 1872: total liabilities. s55.640.1 S2.
In another circular Mr.. Heinze says
that the company earned nearly fourteen
per cent on its common stock in 1906, and
adds:
Should you accept the accompa nying
offer of the undersigned to exchange
your preferred stock for common stock,
your would increase your income nearly
fifty per cent. irrespective of the prob
ability of increased dividends which may
be declared this year on the common
stock. which is likely to be placed upon
the same dividend basis as Amalgama ted,
in which event there Is no reason why
United Copper common should not sell
at the same price as Amalgamated.
81 also call your attention to the super
Tor advantages Of the broad market
which exists for the common as compared
to the narrow and limited market for
the preferred; also to the very consider
able profit in the exchange, considering
the present market prices of the two Sc
curities viz. the preferred rs $50 bid. the
common s72 bid. This offer. therefore
amounts to 500 per share of preferred
on the present market quotations. or a
profit of so share to each stakeholder
accepting this proposal, in addition to
increasing your income about fifty per
cent.
Apparently the Heinze interests are pre-
pairing for the inevitable battle with the
Amalga mated subsidiary concerns in the
markets of the world. This is no idle
dream, for it is known that the Heinze
interests in Montana ind elsewhere have
been quietly Strengthening their position
to facilitate competition with their more
widely advertised adversaries.