The copper era., 1907-01-10
THE GREENE -CANANEA COPPER co.
Some DisapprOval of Consolidation Terms The Arguments fof Those Who
 Justify Action bf Directors.


 Here and there notes of disap. proval of the terms Fupon which the Greene Consolidated directors sold out to Messrs. Colel and Ryan, are heard. In the main, objection is raised: First, because of the fact that in the consolidation the Greene property, with s6,OOO,O ,OOO of current assets, an enormous tonnage of ore ''in sight," an equipment costing millions of dollars, vast ownership in timber lands, railways, etc., was put in at only $50 1000, 900 in par value of new stock, while the Cananea- Central without equipment, or any large amount of openings (having been bought by Cole and Ryan within the past year for S2,5OO,O ,OOO), was put into the combine at 2O,OOO,OO0.
 The second cause for complaint is that Messrs. Cole and Ryan are per mitted to take to themselves 200, ,OOO shares of fully paid Cananea-Central stock from the treasury of the Greene Co. at s2O per share. By ''fully paid" is meant that the 200,- 900 shares in question are not subject to a further call of S5 per share which will be levied on the remaining 100000 shares recently quoted at $40 per share.
 Those who would condone the action of the Greene directors in selling out as they did to Messrs. Cole and Ryan take the position that the Greene property as it was being financially and physically operated, was heading toward the rocks. They claim that Colonel Greene had given evidence that the problems to be solved were too much for him. He had demonstrated that he was unable on high copper market to make the property earn the small dividends paid, and that he was involving the proposition more heavily every day.
 His final effort in financing his money requirements was to be through the sale of 250 900 shares of stock to stockholders at S25 per share. Such on attempt, it is alleged, would have put the stock be- low $2O per share. Instead Messrs. Ryan and Cole, cogni3ant of Colon el Greene's necessities, offer to consoli date with one of their properties, supply needed financial assistance and take the management.
 Those who approve of the consoli- dation state that the best proof to be found that the terms were equitable is the fact that the public bought Greene Consolidated stock up to S35 per share when it was learned that Ryan and Cole instead of Colonel Greene was to manage the property. These men, it is held, would of course not have taken hold of the scheme unless they saw something in it for them. They were looking for their profit and the Greene stockholders have shown by the stock market action of Greene shares that Cole and Ryan are entitled to all they got out of it.
 Regarding the sale of 10000 shares of Cananea-Central to Cole and Ryan, those who believe this was a wise and fair transaction state that the cost of these shares to the Greene Copper company was only nominal amount, and that while the directors were criticised for putting a balance sheet value of S2,O0O,0O0 on it, they sold it for $4,OOO,OOO. It is further argued that forced sale of 20O00 shares would not have brought half this sum, and that therefore Cole and Ryan cannot be accused of taking advantage of the Greene stockholders by appropriating a part of their treasury assets at fair price.
 In short those who would justify the action of the Greene directors claim that the Ryan-Cole manage ment was worth all it cost and that the stock market proves it.