The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1909-12-23
HAS Nevada CON.
CAUSE TO KICK
Valuation of Property in Merg-
er Offer 100000 More
Than Utah Copper.

The only material advantage 10 be
gained from taking Nevada Consolidated
into the Utah COpper-BOston Consolidated
merger to be conceived by the layman, is
that it might be more convenient in the
forming of tie proposed big copper meT-
ger to handle the several properties as
unit than TO deal with them as sep
arate organizations On account of the
distance by which the Utah and Nevada
properties are separated, the maintaining
or separate organizations insofar as
practical operation is concerned. would
be imperative The situation as to Utah
Copper and Boston Consolidated in this
regard is, OF course, quite different; dis
tinct advantage is TO be gained by work
ing the two adjoining properties as a
unit.
The Guggenheins, who control about
10000 shares Of Nevada Consolidated s
100000 shares Of capital stock and are
large minority shareholders Of Utah Cop
per, favor Nevada Consolidated entering
the merger upon the exchange basis Of "a
shares Of Nevada Consolidated stock for
one share of the new issue of Utah Cop
per stock. a large element Of Nevada
Consolidated stockholders contends, how
ever. that the fair basis Of exchange
would not exceed two shares for one.
With pa TO one as the basis, Nevada
Consolidated stockholders would receive
for their holdings approximately 10000
shares more of Utah Copper stock than
are now outstanding. That would be plac-
ing the valuation Of Nevada Consolidated
property at a figure of 100000 greater
than the valuation placed upon Utah Cop
per's property. The tonnage Of proven
ore in Utah Copper is at least twice as
great as is that In Nevada Consolidated.
The average grade Of Nevada Consoli-
dated ore IS a trifle higher than Is thaJ
OF Utah Copper, and the Nevada company
has something the advantage in owning a
railroad and a smeiter.
offer Appears Liberal.
The 100000 excess valuation given Ne
Vada Consolidated appears to Utah peo-
pie to be ample 10 cover al advantages
that can be urged. Nevada Consolidated
holders are 'chesuy over the showing
of low cost production that has been made
by that company, but Utah Copper has
been giving it a close race, reducing its
cost continuously, even when for a con-
siderable period working IN ore Of so low
grade that it had never in the company's
calculations been counted upon as an as
set
That the cost OF producing copper from
the Utah properties viii be further re-
duced with the proposed enlargement Of
their mills to a total capacity or llVJ0
tons OF ore a day goes without saying
And, meeting a further objection Of Ne
vada Consolidated holders to the eX-
change. il is announced that, beginning
with the next quarter, the Utah Copper
company Will increase it's dividend rate,
and that Nevada Consolidated stOckhoid-
ers in the event of their entering the
merger, would be given certain rights 70
subscribe for the stock OF the Utah Cop
Per company, which rights with the in
creased dividend Of the Utah company
would fully equaliZa the dividends that
Nevada Consolidated stockholders are now
receiving.
Increasing the capital stock OF Utah
Copper from 10000 shares TO 250O,0JO
shares and taking over Boston COnsOli-
dated on the basis Of % for one and
Nevada Consolidated at pa for one would
a shares %
ING unissued. which would be ample, no
doubt. for proposed mill improvement ts
and for acquiring the Garfield smelter
and the Baltimore refinery.