Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-14
WOULD PREVENT DEAL
FOR NEVADA CON.
President Issues Letter TO StocHno'u
crs Protesting Agninst Consohda-
lion With Utah Copper

company, protesting against conso'-
idation with the Utah Copper company
under any terms. The offer OF con-
solidaton no said was made only rev
days after a meeting at which the
members of the board. not Interested In
Utah copper made strong protest
against merger and were promised
by the Guggenheims that no steps
would be taken towards II until the
Guggenhoim engineers figures had hrst
been verified by metallurglcal experts
and the accounts of the Utah Copper
company submitted to the auditors
MIR, Phillips says that there are
5000 stockholders in the company. he
declares that he believes 1t his duty
TO inform the stockholders OF all the
conditions OF the companies. He says:
in view of the fact that three OF
the Nevada board are also members
of the Utah board and would be de-
barred by custom and equity from vot-
Ing upon the proposed merger the
responsibility for protecting the out,
side interests in Nevada Consolidated
fell upon w. Hlncklc Smith, c. Hart
man Kuhn of Philadelphia and myself.
This fact also demonstrates the nee
essity for n thorough examination OF
tho properties by a board OF indepen-
dent engineers, should any further
plans for an alliance of these COM
pnnies be forced upon us. The New
ada company should welcome this ac-
tlon, as II has nothing to fear OF con-
ceal from any form OF physical or
financial examination, however rigid
WANTED INFORMATION.
At the meeting mentioned II is de-
clared that the following information
was insisted upon: THE proven ton
mage and actual percentage and ex-
traction of Utah ores, the company's
financial condition, including details
of so called deferred charges, advances
on metals. borrowed money. etc, net
earnings since actual operations began.
together with the facts as to having
earned the dividend already paid and
the possibility to continue dividends
after consolidation, In view of the
merger with Boston Consolidated and
the increase IL capitali5ation; all facts
in similar line of investigation re-
garding the Boston Consolidated, for
what purpose the 400, 900 shares re-
naming in the treasury of the Utah
Copper company were to be used
In speaking of the affairs OF tho
Utah Copper company and the meet
ing Mr.. Phillips grows sarcastic and
says:
I'VE urged that the Utah company
should pay for it's own necessities: that
called upon to pay more than the real
value OF Boston Consolidated, which
the Utah company was forced to buy.
owing to the physical conditions at the
Utah mine.
las to the data that had been
presented regarding the quantity of ore
and the extraction, the chief engineer
of Messrs. Guggenheim refused to cer-
tify to the correctness OF the estimates
and assays until he had weeks time
or more 10 check up such assay maps
as he possessed and statistics involved.
An assurance was at once given that
sufficient time would be allowed for
examination and certihcation before
any further action would be taken. 1t
was also agreed that auditors should
duly so ovcr all the facts and figures
submitted by the chief engineer up to
this time and for the future, and also
report fully on the financial conditions
OF both the Utah and the Boston Con-
Solidated companies.
Attention was drawn To the absurd
claim that Utah and Boston Consoli-
dated could pay their proportionate
share of future dividends, and we de-
manded that proof of their ability to do
so should be submitted to the board
Tor examination. In connection with
thls IL is extremely interesting to note
that the GuggenheIms head engineer
stated at this time that 1t will take
from two and half to three wears 10
put the Utah company IN q position
to Increase Its production. Nevada to-
day Is paying dividends at the rate of
SS.0oO,0O0 and Utah at the rate of
Sl,6G0.oOo per annum.
GUGGBNHEIM PROMISE
"Messrs. Guggenheim declared def
lnitely and positively that unless
these statements as to dividend earn
ings could be substantiatcd the deal
would fall through and no further at
tempt would be made to combine tho
Nevada with the Bingham properties
Without the fulnllment of one OF these
promises. the Utah offer was forced
through tho Utah board on tho follow
ing Friday on the terms presented Nor
has your president had any proof that
any of these promises made at the
meeting have been kept
Even against the conviction and
wish of some members of the Utah
board. this trade was mado on figures
practically handed In by the Utah peo-
pie. and on this date the agreement
was carried through. notwithstanding
the chief engineer himself could not
certify as to the correctness OF the
Utah ores and assays"
The letter contends that an effort
ls being made to compel the stock
holders to barter away the most sue
cessful porphyry mine in the country.
one or the largest smelters in the
world. and a railroad which alone Is
conscrvatively valued today at S10.-
100000 to s12,000.000. for a small
minority In a mining property that
possesses neither OF these advantages
and to reach a determination upon tho
unverlned figures OF the engineers
based upon the unchecked aa5av
charts OF the Utah company. all COM
bined to force me to draw a comparI