The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-03-07
Mines and Mining Stocks
CAUSE OF BREAK
IN PIOCHE DEAL
Ohio Kentucky Company Was
to Have Been Made a
Dead One.

The real reason why the Ohio-kentucky
Nevada Utah deal failed of eonsumma-
tiOn Friday, after the long conference
with President George E Learnard, as
explained by Ohio-Kentueky officials yes
terday, was like this: The proposition was
to take all the conflicting interests on
both sides, organize a new company and
divide the stock between the Chicken
lucky and the Nevada-Utah companies.
The former company has already spent
large sum of money in development,
equipment. etc. and hundreds of thous-
andS Of tons Of ore has been opened up
In the matter of development. orc show
Ing an acreage to throw into the deal the
Ohio company felt that II had all the bet
ter of the argument and made concession
after concession and then stood ready TO
DO as explained above.
1t developed, however, that President
LeaGnsrd came out from the east with d
proposition that was framed UP by the
NCVada-Utah directors and which COntCm-
plated a control of the proposition on
lines that the CODES and Colonel James
l.. Hackett proclaim will never be aC-
ceded to and ore which they declare their
shareholders would laugh to scoTn should
it b. presented to them for ratification.
According to the statement Mr. Learn
ard wanted a holding company, with d
nominal amount of shares, 81 per cent OF
which should be delivered to the Nevada
tab company and - per cent to the
ChiO-kcntucky company. The former was
to have majority of the board of direc-
tors and the management of the mines,
while each side was to advance $4,000
Tor the purpose of placing the proposition
on diviiend-earning basis. There was
talk of making the board of directors by
each side nominating two and the four
members thus selected naming the fifth
director. But that would not help out
matters any, as the Ohio-keutucky com
pany would remain simply with a scrap
Of paper TO show that it owned ~ per
cent in the holding company and would
be the only company having issued stock
which alone represented the one property
Ou the other hand. the NeVada-J tab
would count its u per cent as an asset of
IN Nevdda-t tab ami thus acquire a con-
siderable advantage from the stock mar
kCt feature of the deal.
IF this business had been agreed to,
said one of the OhiO-kentucky officials
yesterday. our company could never
have "a voice i'm the handling of the prop
crty; tic management and control would
forever have rested with the other side
a. nothing short of q purchase Of the CON
troll of the NevaGa-Jtah corporation by
the ohio Kentucky would have given us
any say in the property. Mr.. Learuard is
a good deal " Il hypHotist and, at differ
ent times during the negotiations he came
pretty close to convincing Us that black
was white Why. when ] got up this
morning and SLOWLY began to recall the
Incidents of the conferences. ] Instructive
ly reached for my vest to he sure that |
was still IN possession of my watch and
chain. We had come 50 close to being
charmed out of the companS's mines
that I was prone To believe that | may
have been touched for everything | had
without knowing il. Seriously. though,
Mr.. Learnard is 4 jolly good fellow and
is entitled TO full credit for making
fight for the best interests Of his own
company. But ! feel rather sore to think
that he must have sized US up as not
having sense enough to resist his plead
IL 81 and practically make a present of
one Of the biggest mines in Phoebe to
bis l.nl'nnrat inn- -