The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-20
Utah CON. To HAVE
FIRST OPPORTUNITY
viii Be Given Option OIL Any
Part of $500,OO0 Capital
Stock of New Company,
THIS TO BE FORMED TO
OPERATE NEW SHELTER
Official Statement Issued by
President BroughtOn Bear
ing Oh Matter.
Special to The Tribune.


NEW YORK, Nov. 19,--Crban H..
Broughton, president of tbc Utah Con
solidatcd Mining company, has issued
a statement 10 shareholders which con
tains the information that the Utah
company will be given an option on any
part of 100000 capital stock of new
company 20 be formed TO operate the
new smclter. The Utah consolidated
has entered into j contract with w. D.
Thornton for the smelling of its ores
for period of ten years. The circular
TO shareholders contains the following:
During the eight years [ have pre-
sided over the affairs of your company |
have addressed YOU but once, except
through the medium of an annual re-
port. In September, 1907, / denied GER
tain statements that were being indus
triously circulated IN the public press.
which statements have since been
proved 10 he unfounded.
Closing of Smelter.
'I now desire 10 give you ipforma-
tion upon j matter of Importance TO
your company. In January OF this year
your company s smelling plant III Salt
Lake valley was closed by order of
court, after the case had been carried
pany was then confronted with the
proposition Of building d new smelling
plant ia another location which meant
the cessation of production for about Il
ycar and a half, or the alternative of
entering into contract for the smelt-
ing of its ores with the Garfield Sulelt-
ing company. In February of this year
contract was made with the Garfield
Smelling company for n period Of one
year. This contract was the best that
could be made under the circumstances;
by its provisions Your company had the
option, in six months time, of extending
the contract for a second year, aud the
right Of discussing the question OF
certain modification, and the making OF
a contract for period of hVe years.
New Problems Presented.
SIN July your company exercised its
option to extend the contract for Il sec
ond year, and Informed the Garfield
Smelling company that II was prepared
to take up the other questions. The
Garfield Smelling company notified your
that 1t would prefer 70 defer
these questions for ninety days; which
vour company could not agree to, for
the reason that certain options upon
laud adjoining the smelter site owned
by your company expired October l.
Your company, however, agreed TO
The condition that its contract should
run for eighteen months from that date.
On September %, the Garfield Smelling
notified your company that II
could not change any condition of the
existing contract. but would make
contract for five years, but not on any
moro favorable terms to. your, com
pany, Hour company Immediately,
as protection, exercised It's options
on the lands adjoining its new smclter
site.
'"Your company has now entered
into O contract with ". D. Thornton of
Butte for the smelling of its ores Cor
period of ten years, commencing
April, 1910, the proper performance of
which contract IS guaranteed by four
persons acceptable TO your board of
directors. Under the provision Of this
contract Mr.. Thornton agrcos:
Will Crowd Great Work.
81. To erect smelling plant in
by April, 1910. and treat the output of
your company's mines up 10 1900 tons
per day. at a rate which is 81 go cents
per ton more favorable to your com
pany than the contract now existing
with the Garfield Smelling company.
F'2 To acquire from your company,
at cost, all the lands and options it
las dtQulIGu IL OpElc CpubbNs
"3 To give your company an option
upon any part Of $500,000 par value
of tho capital stock of the company,
to be formed TO operate tho new
smelter. upon as favorable torms as
may bo extended to any other taker
or subscriber TO stock.
''The cost 10 your company of
transporting ore to the Tooele smelter
will not exceed l5 cents per ton.
"All figures in connection with the
existing contract and that entered into
with Mr.. Thornton have been approved
by z. P. Mathewson Of Anaconda, your
company s consulting engineer,
Upon the basis of your company's
present output of ore, 500 tons per
day, the contract entered into with Mr.
Thornton will result in a saving to
your company, as compared with tho
100000 per annum, or 81 per share
upon The capital stock of your COM