The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-12-22

The evidence continues to ac-
ummulate that the copper merger
will go through on schedule time, as
originally contemplated, regardless
of the many statements to the con
trary, and that the only change on
account of the recent Standard Oil
decision will be simply and solely an
unimportant modification in the
method of consolidation, says the
United States Investor.
]. d. Ryan, president of the Anal
gamated, has recently gone on record
with the statement 1.-The copper mer-
e has not and will o fail
through"
The Identification of j. P. Morgan
with the merger has been questioned
and denied in some quarters, and a
few days ago the statement was pub
lished that the plan of consolidation
had been submitted to him in its full
detail and that he had turned down
the proposition entirely. There is
the best of reasons for believing how
ever, that these statements are al
most as far from the truth and the
actual facts as it would be possible
to make them.
A feature which is we'll worthy of
consideration is the fact that, gen.
orally speaking, consumers in this
country as well as all over the
world, would much prefere to have a
stable range in value for metal from
Is to Is cents than to contend with
violent fluctuations from 9 to "a
cents. A firmly established price
range would assure fair profits to
producers and avoid the violent and
uncertain fluctuations which nov
frequently demoralize the consuming
trade. Altogether there seems to be
every economic reason and justifica-
tion for the copper merger, and there
now seems to be left little room for
doubt of it's being an eventuality of
the near future.
While the legal difficulties of the
merger have been greatly magnified,
they do not seem to stand the test of
final analysis. 1t will be a simple
matter for a new corporation to pur-
chase as many companies as it can
pay for by the simple process of hav-
ing these companies go into liquida-
ton and the actual sale of their prop
erty effected to the higest bidder for
cash. In this connection it should
US III Illho thdL H avn
of the Tennessee Coal & Iron COM
pany by the United States Steel cor
~poration was approved by the gov
eminent officials in advance, and it
would not be either impossible or i'm
probable that the promoters of the
D D merger would also secure in
advance a full approval of all the de-
tails of their plan by the Washington
authorities.
One thing is assured in any event
and that is that there will be no e
travagant over capitalization through
the acquisition of any of the COM
ponent companies at excessive g
ures. The recent readjustment in
market values of the stocks of a
number of the companies which are
likely to be included has been to a
certain extent confirmatOry of this
theory. The most generally accepted
idea as to the consolidation is that
all the properties will be acquired
upon a basis of their actual earning
capacity on an assumed price per
pound for copper.
The statement has frequently been
heard that because of the high cost
of production in the case of the Am
algamated, the acquisition OF many
of the smaller companies which are
producing copper at considerably less
cost would have to be given relative
ly a much greater amount in the Sc
curities of the new company thar
would be the case with Amalgamated
In other words, the theory was thai
If the copper deal went through, Am
algamated around 80 was high
enough, and all the low priced cop
pers which turn out metal for
cents a pound could safely be pur'
chased for big profits.
This theory, however, has not
been supported by the Quotations IN
the stock market, as the shares OF
both the Amalgamated and the
other companies have moved IN
the same relative proportion.
In this calculation the fact was
doubtless overlooked that the Am
algamated holds other assets OF
great value aside from its copper
properties and the further fact tina,
these various properties are now be-
ing capitalized seems to further cor
roborate the idea hat all companies
will go into the combination on
basis of their earning power and the
Amalgamated may be able TO go IN
on the same basis of all other com
panies and still through the distribu.
ton of securities representing Its
other assets, give to it's shareholders
an amount which will amply justify
it's prevailing market price.
The Amalgamated company has
Just incorporated the Big Blackfoot
Lumber company, at $25,00O,e00
This company succeeds its Dig Black
foot Milling company with an au-
thorized capitalization of 100000
of which only 500, 600 was ever
issued. The immense holdings OF
this company alone have been con-
servativeLy estimated to be worth
$4,000, 900. They include 1000
900 acres of timber lands estimated
to contain over 4,000,000,p0 feet
of standing timber with a saw mill OF
an annual capacity of 85,0O0,0OO
feet.
The AmaIgamated also owns the
Diamondville Coal & Coke company,
uhoca coal lands have an estimated