New-York tribune., 1910-11-26
SHELTERS BOND ISSUE
Guggenheim Company's Cash Assets
Will Equal S5O,O00,0O0.

A special meeting or the stockholders of
the American Smelling and Refining Com
pany has been called for January 5 70
ratify the plan of issuing $4,000, coo s par
cent convertible bonds OF the American
Smelters Securities Company, which will
be convertible into common stock Of the
American Smelling and Refining Company
whenever the bonds sell at par or abovA
In a statement to the stockholders explain
ing conditions making necessary the rais-
Ing of additional capital and the relations
between the two companies Daniel Gus-
genhein, president of both conpanteA
says:
The American Smelling and Refining
Company is the owner OF S1l,l5l,OVV "a.
value out of a total of S30, ,Goo, ,O0o par va4Es
Of the common STOCK or the American
sSnelters Securities Company 1t IS Las
guarantor OF the s3JVo0.uo0 OF Series
preferred stock Of tnat company 1t IS
large creditor of the Securities Company.
The prosperity of the two companies is
therefore, inteTdependent- The funding 0s
the Indebtedness or the securities COra-
At the time of the organization Of tho
Securities Company, in 1890, your directors
foresaw that the enlarged production Of
ores would require vast expenditure OF
capital in order to Snelt and refine such
increased product The Securities Com
I'pany was successfully organized withou.
the expenditure OF any capital on the part
| of the American SmeltinS and Refining
Company, and Notwithstanding the en-
larged operations Of the Securities Com
rany there has been no necessity OF pay
ment, even Of single dollar. oy your
company in the discharge of its obligation
as guarantor Of the Series 3 pre1err.d
stock OF the Securities Company. Ias
wisdom OF this policy IS shown by ts
pany at the time Of the organization Of
/ the Securities Company had reached
tctaI OF approximately coo per an
companies to-day aggregates s1so0oo.O00
| The time has now arrived for this com.
pany to prepare for q further increase and
development Of its business Pans navs
accordingly been devised. particularly ID
respect of the receipt of ores and furnace
material from abroad
| To prepare adequately for the future q
| this con. pany and to fund the debt OF do
| Securities Company IL Is deemed advlsaose
that the Securities Company shall issue and
your company acquire S15,ooo,Oto or PSF
| cent ffteen-year gold debenture bonds OF
| the Securities Company: that the latter
| company shall thereby repay the advances
made to It and discharge its floating u.
| debtedness; that the bonds so acquired OY
| this company be made convertible INTO ne
common stock of this company on the con"
| ditions already set forth, and that the prs.
| ferred and common stockholders OF ta1
| company be afforded the opportunity 20
| subscribe pro rata for the bonds OF hs
Securities Company thus convertible.
/ 1nEOuBH Lllc t4ptCIcO GAtAAi4dbO
sion of the bonds into common stock and
the operation of the sinking fund the Sueit-
| ing Company should. as a result OF ms
| transaction, receive approximately Sl0,0e9s
additional cash capital, which. with tne
| present cash capital will make g. total Ok
! approximately N7oI0.000 cash. The ores an1
! metals in process Of smelling and refining
now held by the company, together win
/ the present investments and the necessary
stocks fuel. etc. aggregate at ieass
| s23 GOO ON1- II can. therefore. be confidently
| expected that the cash assets OF the ccln-
pany will equal $50 Goa. go and that tie pre-
| ferred stock OF the company Will have Ns
entire face value Offset by cash and QUICK
assets The common stock viii be repre-
scented by the property account OF Soe.ooenn,
S11 751 coo par value Of the common stock OF
the Securities Company. Such bonds as re-
main in the treasury Of the company hoI
retired by the sinking fund Will receive m
terest at the rate of 5 per cent per annu1l.
1t is believed by the directors ot your
company that the holders of the preferrsI, ~
and common stock of this company w!
profit greatly by carrying out this plah.
The increase of business and the increasing
value of the stock held by il in the SecuI-
ties Company should assure not only tne
payrnent of the 7 per cent dividends on 20
preferred stock, but should enhance tne
dividend earning power of the common
stock Further advantages are secured to
both classes of stockholders by exercising
the privilege which is to he offered TO them
Of subscribing pro rata to the entire lss.'
of SIS. coo. 600 of bonds of the Securities Coll..
pany convertible into the common stock =.
this company. a right which fr IS Dele'0
will prove of considerable value.