Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1908-11-06
SNAP DEAL OF
DAV|S-DALY IS
CONDEMNED
Large Number of StockhoId-
ers Lose Aggregate of 49,
600 Shares BY Not. Paying
assessment in Time.
UNITED States investor.

Omitted States Inyestor.)
II is doubtless true that If imznedi-
ate assistance had not come TO f..
Augustus Heinze and ais associates il.
the Dayis-Daly Estates Copper COM
pany last summer. that company
would have been forced into the hands
of receivers, and perhaps the property
entirely lost to the stockholders
Mr.. Heinze saw the storm brewing
last spring. after the collapse of ais
various banking and other of his min
ing enterprises, and FASTENED to Bos-
ton in June to confer with his direc-
tors, and planned for the rehabilitar
ton of the company's finances. At
tachments were at that time being
flied against the company by the Mad
ison River Power Co., TO whom IL
owed Sl2.225, the Montana Hardware
Co. which it was owing for supplies,
and the Anaconda Mining Co. was
suing It for $500, also for supplies.
Furthermore, power for the running of
the mines was threatened to be shut
off If settlement was not made with
the Madison Co.
On July 1 there was $125.000 due
the Daily Mining Co, from the Davis
Daily vendors, but this was STAYED off
by the cash payment of $4,000. ana
the extension of the remaining $780,
600 to October 19 last The stock was
down to $1S7h bid in June, and
everything looked as if the company
was going to the dogs" 1t was
therefore necessary for Mr.. Heinze
to do something and do il quickly.
At special meeting of the com
pany called on September ). action
was taken on an agreement dated
August IS. between Mr.. Heinze and
his associates, and Mr. Thomas n. T.
Roborg representing New York bank
ers (and 1t is said standing close 10
Mr.. Helmet. to transfer the COM
pany's entire assets except cash, treas
ury stock and bills receivable, to a
new company, the latter agreeing to
pay the floating indebtedness, amount
ing to $1S5, 090, also operating ex-
penses subsequent to July 1, 1908,
and payments due and to come on
deeds in escrow, etc, aggregating
about $500. 900. the stockholders of the
company to be entitled to join in the
reorganization and to receive one
share of new stock for each share
OF old stock on the payment of 81
per share assessment.
The plan further provided that
Thomas NJ T. Raborg and his asso-
ciates underwrite 500, 900 shares or
the new stock without commission or
other charge, and further, to make the
payment of $l06, 900. due on the prop
erty September 10, 1908.
Notice was sent out TO all the stock
holders in the Davis-Daly on or about
August 25 that If they wished to par
ticipate in the reorganization they
must deposit their stock, and pay the
assessment by three O'Clock October
I, thus allowing them only 80 days
in which to join in the agreement or
be wiped out entirely.
The injustice of this proposition is
apparent on its face. To begin wita,
the stockholders had only a compar-
a lively short time in which to comply
with this request, and it appears as
though they were given just as little
notice as was possible, and still keep
within legal limits. Only a very brief
notice was inserted in the daily papers
and that only a few times, and IN
very few publications. The reason
for this, Is, of course, clear, when it is
stated that the underwriters under
wrote the plan without a commission,
thus relying for their profits on the
failure of the stockholders to deposit
their stock and pay the assessment in
time. Quite a large number Of stock
holders failed to pay the assessment.
1t was stated recently that the re-
organizers secured about 10000 shares
of stock at the cost of the 50 assess
ment. but this is not correct. There
are about 10000 shares which they
claimed were received too late for
admittance. but at the demand of sew
eral of the stockholders and threats of
suits being brought against the Davis
DAILY Estates Copper Co., about $4,000
shares OF this 10000 shares nave, we
understand, been accepted. leaving
about $1,000 shares for the under
writer's
What should have been done to
make this plan fair and equitable fer
all concerned. was 10 have paid the
underwriters a fair commission for
furnishing the money to save the
property and sfford TIE stockholders
a reasonable time in which to join in
the plan, but instead the underwrit-
ers undertook to put through snap
deal, loaning Heinze money and taking
their profits out of those who failed 10
come in and pay assessment.
1t is more than probable that sew
,erai stockholders who have been shut
out will bring suit against the com
pany for t1e purpose of forcing them
20 accept their stock ON the payment
OF the four installments provided for
in the plan.
The new interests who have come
into the company through the reore
ganization, in order TO guard against
any diversion OF the money subscribed
TO rehabiliate the company from being
appied except for the purpose for
which II was intended. have appointed
two prominent New York bankers to
serve on the board OF directors, that
IS, Mr.. Newman Erb and Mr.. Samuel
N. Jarvis, and it is due very largely
10 their insisting on far dealing and
fustce to shareholders that so much
of tbs stock which was little tardy
IN coming in has been finally &C
cepted-
The value OF the sto1s- which "a.
been left .oat or the agreement is
around so cents per shar = iiqaiGa-
tson. but il is p-cbebie that we're tae
-