The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-18

1t proposes to assess Bingham ConsoI-
idated $13 a share, increase of Ohio
stock by 100000 shares, and gives those
who pay the assessment four and two
thirds shares of Ohio stock for each
share of their Bingham Consolidated
holdings, which would be at the rate
of $3.50 a share, or soc or more less
than the present market price of Ohio
stock. 1t also plans to give the Bing-
ham Consolidated shareholders one
share of Eagle & Blue Bell stock for
each share they now hold in Bingham
Consolidated as a sort of bonus.
Thomas Weir, the only director of
the Ohio Copper company now in the
city, stated that he knew absolutely
nothing of the pending negotiations,
while w. s. Mccormick, who was for
merly a director in the Bingham Con-
solidated, stated that he had been adj
Vised that negotiations of some sort
looking to merger of the two COM
panies were under consideration, but
he did not possess anything of a de-
tailed nature relating to the plans. He
stated that he had sold out of the Bling
ham Consolidated and was therefore
Ineligible to serve as a director, so it
was not to be expected that he would
be consulted in the matter. But here
is the scheme, as outlined in the news
from Boston:
Frame-up of the Deal.
Leading interests in the Bingham
Consolidated Copper company and the
Ohio Copper company, the latter con-
trolled by F. Augustus Heinze, have
been in conference in New York the
last few days, considering a trade
whereby the Bingham Consolidated
company will go out of existence
through a merger with the Ohio Cop
per company. 1t has been apparent for
some time that the Bingham Consol-
idated company would be unable to
work out" except through some other
property. In addition TO its 100000 of
outstanding bonds, il has a floating
debt of $750.O00. OF This floating debt
about s150,00O is held in Salt Lake and
the remainder in Boston.
The Ohio Copper company has $50, 900
shares outstanding. 1t has a well de-
veloped low-grade property of great
extent-a has a 2,000-ton mill nearly
completed. In face of the financial dis
turbances of 1907, when Mr.. Heinze be-
came involved, the Ohio Copper COM
pany was not sufficiently financed. 1t
needed S1,O00.00O to complete the cree,
ton of its mill and pay the floating
debt. Under the plan as now proposed,
anu WHICH VIII D6 ldiu DelOG6 the Stock
holders within few days, the floating
indebtedness of the Bingham CONSOLE
dated company will be eliminated and
stockholders will be given an opportu-
nifty to make good their losses through
the Ohio Copper company.
The Ohio Copper company will derive
sufficient money from the Bingham
company stockholders to meet it's pres
ent financial requirements. The plan
is to assess stockholders of the Bing-
ham Consolidated company So per
share, which will provide $500, 900. For
this assessment they will be given four
and two-thirds shares of stock of Ohio |
Copper on the basis of $3.50 per share !
(present selling price is $3.50 a share), |
and for each share of Bingham stock
held stockholders will be given one |
share of Eagle & Blue Bell company
stock, control of which is now held in |
the treasury of the Bingham ConsoIi- |
dated company. In order to provide |
the stock to pay over to the stockhold- |
ers of the Bingham company the Ohio |
Copper company viii increase its cap |
ital stock to 1900 900 shares. 1t is |
stated that the assessment of $12 per /
share will be UNDERWATER.