Mohave County miner., 1910-12-17

of the organization of the Securities company has reached a total of ap- proximately SO,OOO,OOOs per annum, the annual value of products of both companies today aggregates 19O,OOO,- OOOs.
 "The time has now arrived for this company to prepare for further in crease and development of its business. Plans have accordingly been devised, particularly in respect of the receipt of ores and furnace material from a. broad. The reduction works, located in the United States, by reason of their enormous capacity are capable of smelling and refining ores shipped from every quarter of the globe.
 This company is now in receipt of ores and bullion from Africa, Aus tralia, South America, China, and Alaska. As yet, it is only feasible to transport Alaskan ores produced on the seacoast but with the construction of railroads, it is believed that a great mineral production will flow to the smelting and refining plants of this company.
 "To prepare adequately for the fu- ture of this company, and to fund the debt of the securities company, it is deemed advisable that the Securities company shall issue and your company acquire 15,OOO,OOOS of 6 per cent 15- year gold debenture bonds of the Se- curities company; that the latter com pany shall thereby repay the advances made to it and discharge it's floating ndebtedness: that the bonds so acquir- ed by this company be made converti- company, on the conditions set forth in the accompanying letter of the secre- tary, and that the preferred and con- mon stockholders of this company be afforded the opportunity to subscribe pro rata for the bonds of the Securi- ties company thus convertible.
 SlC CAPCOJCO conversion of the 5oLas into common stock and the operation of the sinking fund, the Smelling company should, as a result of this transaction, receive ap- proximately 15,OOO,OOOs additional cash capital, which, with the present cash capital. will make a total of ap- proximately 27.OOO,OOOS cash. The ores and metals in process of smelling and refining now held by the company. together with the present investments and the necessary stock, fuel, etc., ag- gregate at least 23,OOO,O ,OOOs. It can, therefore, be confidently expected that the cash assets of the company will equal 50,OOO, ,O00S and that the prefer red stock of the company will have its entire face value offset by cash and quick assets. The common stock will be represented by the property ac- count of S6,OOO,OOOS, to which should be added the value of the 17,75l, ,000S par value of the common stock of the Securities company. Such bonds as remain in the treasury of the company not retired by the sinking fund will receive interest at the rate of per annum.
 ''It is believed by the directors of your company that the holders of the preferred and common stock of thls company will profit greatly by carry ing out this plan. The increase of business, and the increasing value of the stock held by it in the Securities company, should assure not only the payment of the : per cent dividends on the preferred stock, but should also enhance the dividend-earning power of the common stock. Further advan- tages are secured to both classes of stockholders by exercising the priv ilege which is to be offered to them, of subscribing pro rata to the entire issue of 15,000,0O0S of bonds of the Securities company, convertible into the common stock of this company, a right which it is believed will prove of considerable value.
 ''For these reasons we bespeak your endorsement of the unanimous action of the board of directors favor ing the adoption of this plan"