The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-03-14
SILVER KING
MERGER PLANS
New S6,250,000 Company to
Take Over King Bonanza
and Other Properties.
COMPANY ISSUES LETTER
OUTLINES SCHEME AND CALLS
MEETING FOR APRIL 10.

/ II the Cole-Ryan. the Heinze or the
/ Bamberger combinations are to get a
ok at the Silver King and all of the
other acquired interests of that COM
pany, including the Kearns-keith.
| McGregOr holdings, etc. II will have
to come as an after-consideration. The
Silver King company has authorized
the issuance of a call for a stockhOid
ers' meeting on April 10. at which il
is proposed TO consolidate all of the
properties under control of the King
crowd and turn them over to a s6.250.-
900 company, to be organized under the
laws OF Nevada. In a letter directing
attention to the meeting, President
David Keith fully outlines the scheme,
as follows:
THE meeting is called by direction
of the board of directors of the COM
pany to consider and pass upon the adj
visibility OF making consolida ton OF
the holdings of this company with
those of the Kearns-Keit Mining COM
pany and certain individuals. The de-
tails of the proposed consolidation and
amalgamation of interests will be fully
set forth and explained at the stock
holders meeting.
Properties and Acreage Involved.
AS You are no doubt aware. the re-
cent litigation between this company
and the Magnolia-S st. Louis Mining
company has been settled by the puT-
chase by this company of all the min
ing property Of the Magnolia-St. Louis
Mining company, the Baltimore Mining
company and the Pinyon Ridge Mining
company, as well as the personal hold
in. af To I1(x .-1y he
chase of these properties and the set
tlement of the then pending litigation.
the Silver King Mining company has
added to its holdings large number
OF mining claims, aggregating approx
iDIatelv sos acres. If the proposed con-
solidation shall be effected. the aggre-
gate number of acres owned by the
consolidated company would be APP
proXimately 1865 acres.
New s6,25o,oo0 Company.
I'm order to effect the consolidation
il is proposed to form and organize,
under the laws of the state of Nevada.
a corporation to be called the Silver
King Amalgamated Mines company.
with a capital stock of $3.50, 900, di-
vided into 1.250.060 shares of the par
value of s. each; such shares to be fully
paid and worcestershire.
BASIS OF FdTltCipdticH.
'.Of this capitalization it is proposed
To allot the Silver King Mining COM
pany. for its holdings. apart from the
property known as the McGregcT hold
inos. and which were acquired from
the settlement of the late pending liti-
CATION. the sum of s3.750.000: or. in
other words. to put the. 10000 shares of
the Silver King company into the new
organization on the basis of $25 for
each share of the present Silver King
stock.
at is proposed further to allot to the
Kearns- eth company s1.50Q. 900 of the
capitalization of the new company for
its holdings, which would be at the
rate of $3.50 for the 100000 shares of
outstanding stock of this company.
For what is known as the Addena
sfoup. contiguous &c the property of
the Silver King ana Kearns- Keith
companies. it is proposed TO allot 49,
coo of the capitalize ton of the new
company. or 1900 shares. And for ten
claims. aegregating approximately $50
acres, now owned by Thomas Kearns,
it is proposed TO ailot $4,000 of the cap
italization of the new company, or To-
600 shares.
1T is also proposed to allot the So
called McGregOr holdings, 100000 of
the capitalization of the new company.
This amount TO be. represented by 10o,-
000 shares Of the new company's stock.
This 100, 900 shares of the capital stock
of the new company ii is proposed to.
sell and dispose of at par in order to
meet at once the deferred payments
upon the purchase price of the so-calied
MeGregor holdings.
Why Dividends Were Suspended.
"As you are aware. It is part of the
of the McGregor holdings: that no divi-
dends shall be paid by the Silver King
company. or any company succeeding
to its property rights. until the entire
purchase price for the McGregor hold
ings shall have been paid. BY the dis
position of this 100000 shares of stock
at par, the entire purchase price for
the holdings win be met and a fund
afforded for the resumption of divi-
most advantageous for the reason be-
fore stated that dividends may be re-
sunled without delay.
After making these allotments.
there would remain OF the capitaliza-
ton of the proposed new company
$3.50, zoe, or 10000 shares.
Stockholders Asked to Investigate.
ANY stockholders of either the Sill
yer King company, the Kearns-Keith
company or any individual owner of
any of the properties proposed to be
conveyed TO the new company, has the
right and privilege to make such ex-
animation as he shall deem fit to ascer-
tain whether or not the terms of the
proposed consolidation are just and
proper. And il is the wish and desire
of the officials Of this company that the |
stockholders make any such examina-
ton ag TO them seems pr0per and 1