Weekly journal-miner., 1909-11-03
DETAILS RECEIVED OF BIG
 MINING TRANSACTION
(Arizona Gazette.)

(Ar1ZOnA GdZeJLe.
 With the decision of the stOckhold. CTS of the Saddle Mountain Copper company to sell out to the Develop ment Company of America and tho organization of the Gila Sulphide Cop per company, a subsidiary corpora tion, to take over the property, the preliminary details of one of the big gest mining deals made in Arizona for several years were closed up in Phoenix yesterday. Other details are being disposed of in Prescott today.
 The proposition made by Frank N. Murphy, E. B. Gage, W. F. Stsunton and other representatives of the De- velopment Company of America, who have recently been at the Saddle Mountain mine and arrived in Phoe- nix Monday night, was to pay off the bonded indebtedness of the Saddle Mountain company, issue stock in the Gila sulphide Copper company in lieu of the 100000 Saddle Mountain shares outstanding and to purchase enough stock in the new company to immediately start and continue opera tions upon a large scale.
 The stockholders of the Saddle Mountain company more than two years ago authorized the issuance of bonds to the amount of $2,OO0, 900 to cover indebtedness outstanding against the corporation. A little less than a million dollars worth of bonds were disposed of. The Development Com pany of America people agreed to ad- vance enough money to pay off 75 per cent of these bonds within 45 days, and within 50 days after that to advance the money necessary to pay of the remaining bonds. The sum of $50,000 will be put up immediately to begin development and additional cash will be forthcoming when neces- sary.
 The Gila Sulphide Copper company is, like the Southern Arizona Shelter company at Saseo, the Tombstone Consolidated Mines company at Tomb stone and several others, merely unit in the larger corporation known as the Development Company of Am erica. Its capitalization is the same as that of the old Saddle Mountain company, $2,5OO,OOO.
 The deal is of considerable local interest as a number of Phoenix mer- chants hold bonds to secure bills against the Saddle Mountain company and a great deal of stock is owned here. Among the bondholders are the E. s. Kakelin company, s. H. Draehman Cigar company, Melezer Bros. and several others. They will receive cash in payment of their bonds and interest thereon as soon as the final details are arranged.
 At one time the Saddle Mountain people were offered $2,5OO,OOO in cash for their holdings. That was two years ago this month, about the time the panic of 1907 struck the country. For a long time a force of 600 men had been working on the property and they had uncovered ore which proved the mine to be one of the richest copper propositions in the territory.
 A majority of the individual stock holders were in favor of accepting the offer, as it would have meant that they would receive approximately $1.60 per share for stock with a par valeu of only s1. George B. Chitten- den, the original organizer of the company and at that time president, controlled a majority of the shares, however, and he was firmly opposed to the sale.
 Since that time several deals for the property have been in the air but none have gone through. Chittenden has steadily opposed them all. Yes terday, however; his faction was greatly in the minority. He and one of his supporters were not reelected to the directorate. The other seven directors were all chosen as their own successors. The two new members are eastern stockholders.
 It was necessary to hold an cleo tion yesterday, as the annual meeting was due on that date and the terms of the directors expired. An execu- tive committee was appointed with full power to act. On this executive committee is w. G. Bushnell of New Haven, Conn, holder of a majority of the bonds issued. MT. Bushnell left last night for Prescott with Mur- phy, Gage, Drake, Staunton and other Development Company of America rep resentatives.