Bisbee daily review., 1907-05-15

Juding from data gathered yester- day 1t appears that the deal whereby the Five Points Copper Mining Com, aany at Globe. and properties at Cana nea and Agna Caliente were to be merged into the Cananea-Globe Mining and Development Company, is entirely on and the stockholders in each of these companies are now in the same status as sefore the pig merger was contemplated. The reason for the fail are of the deal. judging from a state ment made yesterday by Joseph E.
 Morrison. who was attorney for the company, but withdrew some time ago. was the misrepresentation of the Five Points property to the Mitchells, when the deal was pending in New York.
 About a year ago the Five Points Copper Company was first heard of in 3isbee through Milo Porter, who came here from Globe at that time and placed several thousand shares of the stock on the local markets, selling it to various residents of this city Short. ly after this, for one reason OF an- other it was determined to reorganize the company. which was then capital ized at $500,000 divided into 5O0.C00 shares with a par value of S1, and make the capital s3.000.00o. divided into 300,000 shares with par value of sl0. In the reorganization it was decided to give to those who had paid cash for their stock 1 1-19th shares of the new stock for each share of the old, CT In other words lia shares of the new stock, with par value of $10, for 1o0 shares of the old stock which had par value of Sl.
 It was shortly after this, it seems, that John c. Britt, president of the company. arrived in Bisbee and met Mir. Morrison who had at different times acted as legal counsel for Por- ter during his stay here.
 Messrs- Morrison and Britt left Bis bee shortly afterward. going east. and after several months the prospectus of the Gananea-Globe Mining and Elk ploration Company was issued, ac- coraing to which the company had properties in Globe, Cananea and Agua Scaliefitss. The prospectus set forth that the ratio of exchange for Five Point stock would he share for share in the new coFporation, which was organized for Si5.000.00O
 On his return to Bisbee Mir. Morri- son, acting in the best Of faith. ad- yised the local stockholders to send in their certificates of stock and have the new stock issued in place of it.
 One Of the local stocE holders in the Five Points Company shortly after ward forwarded his certificates to the offices Of the new company and re- duested that shares of CaGanea-Globe be issued 10 him in place of :he fosis r. CT stock In reply Harry W. Martin, [ secretary of the new corporation stated that the exchange could not be made until after November '. 1907, as that was provision which the direct DTS had made iii order to keep the exchange stock from competing with l the treasury stock which WIS placed on the open market.
 On April 16 another Inquiry was sent to Martin. asking when the ex- change could be made, and in reply 1 the secretary on Arril q stated that as a special meeting of the beard of directors had been called for April ! 90, the books had been closed until that time, and that after the meeting the exchange would be made if the Five Points stockholders would not insist on the propositions made in the
 prospectus Of the company and the snbseoGent circulars. On the heading Of this letter under the heading Mines and Works, the word Cana nea was erased. leaving properties at Globe ana Agua Scalientes.
 The erasure of the word Cananea caused some conynent. and another il- duiry was mailed shortly afterward to Martin, in regard to the excbange of stock In answer letter was re- ceiyed from Martin, this one with the
 words ''Cananea" and Globe" both erased. leaving only the property at Agua Scalieltes. Martin set forth in the letter that the directors felt that it would not 5e equitable to exchange Five Points stock for Cananea-Globe. because the only remaining possession Of the latter company were three un- developed claims at Agua Scalientes, which could not be developed owing to the condition Of the treasury. These peculiar letters caused
 great deal of comment among the local stockholders. who were all an- xious for an explanation. and the mat ter was taken up yesterdsv morning by 3 Review reporter and sifted.
 From the information obtained 1t