New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-17

soLIDATED CUMBERLAND ELY
merger the first intimation OF which was
originally given in this Daily Market Letter,
and the details OF which have been followed
by US for the information Of our readers, with
great care and accuracy.
The shareholders of the NEVADA CONSOI-
IDATED will meet November In annual
session. In addition to routine business to be
transacted. the stockholders at this meeting VIII
be asked to vote upon an increase of 100000
shares in the capital stock of the NEVADA
CONSOLIDATED COPPER COMPANY, the
added shares TO be offered in exchange for CUM
BERLAND-ELY stock on the basis OF one share
OF NEVADA CONSOLIDATED stock for 3A
shares OF CUMBERLAND-ELY This action Is
recommended TO the shareholders by the unani-
nous vote Of the full board of directors of tho
NEVADA CONSOLIDATED and it undoubted-
ly will be approved by the shareholders. Fol-
lowing the making of this offer by the NE
VADA CONSOLIDATED. after it has been rati-
fed by the shareholders in that corporation the
shareholders in CUMBERLAND-ELY win be
called into session for the purpose Of acting upon
the offer. It will be accepted by the CUMBER-
LAND-ELY shareholders and the increase in
the capitalization of NEVADA CONSOLE
DATED will be Immediately effected, the trans
fer OF shares will take place and the CUMBER-
LAND-ELY will pass out OF existence.
AhAS VIII give 10 NEVADA
an increase in mineral acreage in the Ely dis
trfct OF about $50 acres and viii give il abso-
Lutte ownership of the Steptoe Valley Reduction
Works and of the Nevada Northern Railway, In
both OF which it has up TO this time had the
CUMBERLAND-ELY corporation as an equal
partner. On the strength OF the definite an
nouncement made early this morning NEVADA
CONSOLIDATED shares, which closed yester-
day at S23& bid on the New York Curb, ad-
vanced Immediately to S24 and under an un-
usual volume of trading. tOtaling 6,9O0 shares
which is a big day for this stock, sold up TO
S241s. closing at S2415 bid. S24Es asked
CCMBERLAND-ELIY also felt the iunpetus NJ
this announcement, and from its close last even
ing at SIA, opened this morning at S73. bid and
sold Immediately up to 81 7-16. closing with g.
bid at that figure. The volume OF trading In
CUMBERLAND-ELY stock during the two
hours session this morning amounted 70 1880
shares, the Importance Of the trading In these
two issues in point of dollars involved far ex-
ceeding that OF all other Curb Issues
The next nearest stock in point Of Importance
| was ELY CENTRAL, which was traded in TO
the extent Of 1900 shares on a price range from
SZ1S TO S21zs with close at S21s bid S214 asked.
ana La ROSE; which was traded in to the ex-
tent OF H. 100 shares at from So 1116 to Sc 1916
with a close at S6sz bid s63s asked.
The news of the NEVADA CONSOLIDATED
| CUMBERLAND-ELY merger is the biggest OF
positive character with which the Curb has
had to deal in a long time, and when the situa-
ton with respect to the transaction is resolved
into its parts IL lays strong emphasis upon the
Importance of the Curb market as a medium FOR
handling securities Of vast value and Of unques-
toned stability.
| BY the increase of 100000 shares in it's capt.
| talization, NEVADA CONSOLIDATED Will be
brought TO capital basis OF 100000 shares, of
| a par value Of So each. but commanding in the
markets price equal TO 610 per cent. Of par, or
| S24A each. On this basis. NEVADA CON-
SOLIDATED sold yesterday at a valuation OF
1
| more than the valuation on UTAH COPPER,
the stock Of which is listed on the New York
Stock Exchange and which sells at around $50
per share. On valuation, NEVADA CONSOLE
DATED, which is the newest of the great pro-
ducing copper companies OF the United States
and which has pioneered the way in the de-
velopment OF the Ely district, in which GIROUX
CONSOLIDATED and ELY CENTRAL are now
such conspicuous factors. becomes next to
AMALGAMATED COPPER the largest and
most important copper mining corporation in
the United states. the shares Of which in
any way widely distributed to the public ac-
lively traded in in the American securities mar
kets.
According TO the last balance sheets issued by
the NEVADA CONSOLIDATED and the
CUNIBERLAND-E ELY for the half year ended
June 80 last, the NEVADA CONSOLIDATED
Company had assets aggregattng S16,242320.
while the CUAIBERLAND-EL had assets of
S10S 1868. Resolving the assets side OF these
two balance sheets into one in order 20 arrive
at the probable worth of NEVADA CONSOLE
DATED after the merger shall have been ef-
fected, get the following aggregate result:
Cost of properties and development S952O25O
Investments in outside companies. 9,73OO1O
Trusted capital stock. ...........,.. 3,693,50o
Materials and supplies. ........... 3S4 942
Copper and cash on hand. .......... 96OoO97
Accounts collectible INSTRUMENTATION. 1874 951
Total ........................ S27 O83 74O
In the three months since this balance sheet
was compiled the NEVADA CONSOLIDATED
and the CUMBERLAND-ELY companies have
derived profit Of approximately S650O00 from
the operations OF the Nevada Northern Railway
and OF the Steptoe Smelter. During this same
period the NEVADA CONSOLIDATED Com
pany has produced nearly 15.OO0,O00 pounds OF
fine copper on which the profit, in a 13c. copper
market, has amounted 20 &c. per pound, or
total Of 100000, that balance sheet made
up for the two companies at this time, without
showing any extraordinary increase in liability.
would show an addition TO the copper and cash
item Of approximately s., 550OOO bringing the
total assets OF the corporation up to S2S613,14O.
This profit from subsidiary companies and from
the manufacture of copper would naturally fig
ure in the surplus profit and loss account which
for the two companies on the Both Of June last
three months profits this surplus profit and
loss account at the present time must show very
close to s9.377, 1874. Against its present assets
of S2S500 900, the greater NEVADA CON-
SOLIDATED Company will be called upon TO
support a capitalization OF 100000 shares,
having a par value OF 50 each. IL appears,
therefore that at the present time, when the
merger has been finally contaminated. NEVADA
CONSOLIDATED will be able to show concrete
liability, making 10 OF the strongest indus
trial corporations in the United States.
The merger Is Of undoubted advantage to the
CUMBERLAND-ELY Company On the basis
which 1t is to be effected. being practically
the payment OF S1oOGoOo0 in NEVADA CON-
SOLIDATED stock for 100000 shares OF
CUMBERLAND-ELY stock. CUMBERLAND
ELY shareholders will realize $3.50 1915 Der
share for their holdings. or approximately 27c
OF their certificates. AS the CUMBERLAND
ELY has been under the control OF the Guggen-