The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-12-27
SOME OPPOSITION
TO COPPER MERGER
Few Nevada Consolidated Share
holders limiting at Liti-
CATION.
OPPOSITION NOT EXPECTED
TO DEFEAT THE PLAN
Philadelphia View of the Pro-
posed Basis for Nevada
Exchange.

| Leading Nevada Consolidated stock
holders are limiting at litigation In their
attempts to keep the Guggenhcms from
merging this property into the Utah Cop
per company. The offer made to tho
Nevada stockholders by the Utah man
agement Is one for tho individual holders
OF the former shares To consider and
does not mean sale of the property to
the Utah company. says the Boston News
Bureau.
The Guggenheims arc heavy stockhold-
ers in both the Utah and Nevada com
pauies and in addition William b
Thompson and Charles Hayden are on
the boards of each corporation, These
interests are all in favor OF the pro-
posed consolidation. but as indicated In
the Utah company's call for a special
$500 900 TO S25 900 900 unless n major
ity Of the Nevada shareholders signify
Willingness to exchange their holdings for
Utah stock the Nevada company Will
the Utah and Boston Consolidated prop
critics. which adjoin. Will go IL alone.
-, The IN c1~es,I1o Deesmber output from The Ne,
run almost up to the 5000. 900 pound
mark. No attempts have yet been made
to reopen the Cumberland Ely property
which the Nevada company now controls.
and there is no probability OF such ac-
ton, as the full capacity OF the con
centrator is desired for the Nevada Con-
solidated ores. Early next year accord
Ing 10 an official OF the company the
output from Ely will be 5000 900 pounds
month. or at the rate OF 1000. 900
pounds a year.
Cannot Defeat Plan.
The Philadelphia interests in Nevada
Consolidated which are opposing the
merger with the Utah Copper company
on a "a for ! basis. control between
100000 and 10000 shares OF stock. so
sitIon and such as they can influence
can possibly prevent a majority OF the
shares being turned into Utah Copper,
especially as the Gugeenhcim interests
alone own and control 700, 900 shares out
OF the total . 900. 600
The plans of the Utah Copper manage
u1ent provide for the sale OF 166.0 900 shares
of new treasury stock at 500 per share.
money for increased working capital.
made necessary by the enlarged oper-
ations: for carrying, copper. etc. for the
building OF new mills and enlarging the
old ones.
1t is expected. however that only be-
tween $5,000.0O0 and $7,000,0 900 OF cash
fusal of some Of the holders of Nc
vada Consolidated to agree to the mer
ger and take advantage OF the rights
atSd Teh W bo yS tbe
stock for Utah on the basis OF "a for /.
Such asserting Nevada Consolidated
stockholders would then have right
to buy new Utah stock at $50 per share
on the basis of ! share for every 10 held.
and would give Nevada Consolidated
stockholders a right valued at about 40
cents.
Philadelphia View,
The action OF the directors OF the Utah
Copper company, recommending to stock
holders an increase in stock for the pur-
pose OF exchanging with stockholders OF
Boston Consolidated Copper company
and Nevada Consolidated company, the
basis OF exchange with the latter to be
one share OF Utah for two and one-quar-
some opposition. 4 Philadelphia interest
closely associated with the management
OF the Nevada company. who is largely
interested in the stock OF that company
with the exception OF the Guggen-
helm Exploration company. which con-
trolls about the same amount OF stock
in each company. and to which, there
fore, n ratio OF exchange Is more or less
matter of Indifference. Nevada Con-
solidated stockholders are probably not
interested in Utah Copper.
II advise all Nevada Consolidated
stockholders TO continue to hold their Ne
vada Consolidated stock until it has been
fully and clearly demonstrated that they
Will receive in dividends on the Utah
Copper stock. which they would receive
in exchange. as large return as they
arc likely TO receive II they continue TO
hold their Nevada stock, At present,
from the statement of earnings put out
by both companies. 1t is not apparent
the Nevada Consolidated stockholders
the amount they are at present receiving.
'The understanding is that the, So
called merger does not mean the aban-
ization, as no stockholder can be COM
PEELED TO make the exchange OF stock
unless he so desires.
Stockholders should bear in mind that
the proposed merger includes not only
the Nevada Consolidated company, but
also the Boston Consolidated Copper
company the earning value OF which is
today not fully determined, and probably
other properties as well. not openly men
toned but hinted at. the value OF which
Is also unknown.
"The Nevada Consolidated is a great
property. 1t is the lowest-cost producer
In this country as has been demonstrat-
ed by actual operation during the past
eighteen months, 1t has approximately
flfteen years supply of high grade ore IN
sight and ten years more OF lower grade.
with possibilities OF materially extend
ing these present ore reserves There
need be no anxiety, therefore, as to the
future of the company.
'Tn addition TO the mines. there is the
Nevada Northern railroad and the Step
toe Valley smelter, both owned by the
Nevada Consolidated company and both
valuable properties, WORTH on the basis
of their present earning power. $15.0oo,O 900
to $40. 900, 900.
at behooves all Independent Nevada
Consolidated stockholders. therefore, To
be guided by those large interests In
terest I'm Utah Copper and who are to-
day represented on the board OF directors
by the president and by the Philadelphia
directors OF at least before indicating
their Willingness to make an exchange OF
stock TO have II demonstrated TO them
over the signatures OF Responsible engi-
neers and accountants what the value is