The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-06-04

UNCLE SAM AND
MAY DAY DEAL
Shareholders of Each Company
Meet and Ratify C0nsoll-
dalton of Mines.
TERMS FINALLY AGREED ON
UNCLE SAM RETAINS ITS RICH
HUMEUG MINES.
TERMS FINALLY AGREED ON

At the annual meeting of the Uncle
Sam Consolidated company yesterday
morning the most important business
transacted was the ratification of the
proposition of the directors TO sell to
the May Day Mining & Milling COM
pany the Uncle Sam claim and the Cora,
Inez and Humbug No. fractional claims
for 100000 shares of stock which the May
Day company was to provide by doubling
its Capitalization. There were $40, al
shares of stock represented at the Uncle
Sam meeting and there was not dis
senting vote on the proposition, which
was embodied in a resolution reading as
follows:
''The board of directors are hereby in
structed to perfect the consolidation be-
tween the May Day and Uncle Sam, as
proposed and agreed upon May !, py
deciding the Uncle Sam claim. the Cora,
Inez and Humbug No. fractional claims
to the May Day Mining & Milling COM
pany, for which the Uncle Sam Con-
sOlidated company is to receive 40,VoO
shares of May Day Mining & Milling
company stock: this stock to be held in
the treasury of the Uncle Sam company
for the benefit of all stockholders. and
the president and secretary are author
lied to execute a deed conveying said
property
May Day CIinches Deal.
That settled the deal so far as the
Uncle Sam was concerned and in the
afternoon the shareholders of the May
Day company held meeting to fix up
its side of the deal. At this meeting
some opposition developed, but not enough
to defeat the proposition by long way.
An agreement was insisted upon that
the shares turned over to the Uncle Sam
Consolidated company should not be is
sued and that feature being granted by
the representatives of the Uncle Sam
company, the transaction was ratified
and the increasing of the May Day COM
pany's stock from 100000 to 100000 shares
to meet the terms of the agreement was
formally ratified. the adherents of the
old regime voting no"
AS will be noticed in the wording of
the resolution adopted by the Uncle Sam
company, the 100000 shares of stock re-
into the Uncle Sam treasury for the
benefit of all the shareholders" That
clause left it open for the company TO
distribute it pro rata among the stock
holders of the Uncle Sam company. or
keep it in the treasury, as might later
have been determined BY the action
taken at the May Day meeting and
agreed to by the Uncle Sam directors, this
stock cannot be issued and whatever ben
eft is to accrue to the Uncle Sam Con-
solidated must come through earnings ap-
pOrtioned in the shape of share dividends
by the May Day company. In other
words. II the May Day company should
pay a 1-cent dividend, one-half of the
5000 would go TO the Uncle Sam company
and become a part of the treasury funds
of that organization.
Good Thing for Both.
The deal is generally looked upon as a
good thing for both companies. The prop
erty conveyed by the Uncle Sam COM
pany adjoins the May Day and lodges
run through both blocks of ground. The
IL Te- han q
original May Day holdings and has
fine milling plant upon it. The two prop
critics are so nearly connected up in I'M
derground workings that 1t will be but
matter of sort time till connections
are made at different points, when the
ores from both will go through the I'm
Gle Sam tunnel and to the mill or first
class bins, according to the nature OF
the product. The May Day property con-
tanned a great deal of milling ore that
had not been mined because the COM
pany did not own a plant in which to
treat it. The Uncle Sam ground is pro-
ductive of both milling and first-class
ore, and when the different portions of
il is the belief that both properties will
be able to do much better than they
possibly could have been expected to do
operated separately. Under one manage
ment the fixed expense will be reduced
one-half and that means just so much
more real money for the shareholders.
What Uncle Sam Has Left.
Those unfamiliar with conditions will
naturally ask what the Uncle Sam has
left. In answer it can be said that the
company has a practically new mine in
its Humbug group, which lies between the
Beck tunnel property and the Yankee
Consolidated and remote from the prop
erty sold to the May Day. 1t also owns
four-fifths of the Richmond & Anacon-
d. adjoining the Humbug. Some mag
nificent bodies of high-grade shipping
bug ground at a considerable depth be-
meath the surface in a shaft sunk from
the Humbug tunnel level. This ore is
said to be identical with that being mined
in the Beck Tunnel ground and just as
soon as Superintendent Griggs has made
the ground is going to be heard from
in uncertain way Some fifteen car
loads of this ore has already been mined
and nine of them are now between the
mine and the smelter.
In the report submitted to the Uncle
tendent Griggs explained at length what
the mine conditions were and showed to
the satisfaction of the stockholders that
a brilliant future lay before the mine
Financial reports were also submitted
and these showed that the company still
had some money in the treasury, not
the long and costly cam
paign that has resulted in the opening
of the ore bodies in Humbug territory
The election resulted in the unanimous
selection of the old board of directors to
serve another year. as follows: John
Dern. James Chapman. B. F. Saunders,
George Havercamp and Joseph Morgan.
THINGS ARE HUMMING