The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-11-13
NOT MANY ELY
CENTRAL BONDS
Practically All Bonds Converted
Into Stock on Special IN
ducement Made.
FULL REPORT IS
RECEIVED OUT WEST
New Company Will Retain Large
Block of Stock in
Treasury.

The reorganization committee OF the
Ely Central Copper company has Tor
war9ed to stockholders a ratner Gonpre, s5
treasury conditions, the first copies pe-
ing received OH Saturday One surpris,
ing item is the small amount of bonded
Indebtedness. which is given as Soo,UoU,
out of the authorized issue or s6o0,OOQ-
This is explained ON the basis that the
bonds were disposed of at such reason
able prices that the purchasers agreed 10
convert the same into stock Immediately.
This portion OF the financial transac-
tions OF tho company is not given In de-
Tail. the statement being made that such
AN arrangement was OF beneht TO Tue
company. The following extract from the
financial statement Will have bearing on
lhc matter
opment work sixteen months ago. the
company was In debt in the neighbor-
bood of $4,000. and its sole assets out
side OF It's mining property was confined
To about - 600 shares of treasury stock.
'.The Indebtedness of $S6. 600 was pro-
Nided for and wiped out by all arrange
ment in which the treasury stock was
disposed of. 4 cash treasury reserve OF
sbout $4,000 was created thereby. Later
a bond issue of $500, 900 convertible into
800. 900 shares of increased capital stock
ut the option OF the bond purchasers, was
authorized.
Financing resulted In mine operations
nn an extensive scale, the average
monthly expenditure being in. the neigh
pcnse Of above 100000 having taken
place. Administration and other eN-
penscs were also Incurred and provided
Tor.
eat this writing. the total outstanding
bonded Indebtedness Of the company is
not in excess OF $4,000 and the cash
Indebtedness of tho company for mine op-
rrationS and all other expenses is not
in excess OF s@0, 900.
This splendid showing was accom-
plished by an arrangement with the nn-
dcrWrIIcrs OF the bonds by which the
price OF the bonds was reduced after Il
period on the specific agreement that
they uc Immediately converted into the
"onnon stock OF the company, The re-
auctions which were made from time to
time were as a rule sufficient to permit
the exchange OF bonds Tor stock al a net
price For the stock equal 10 the market
value OF the stock at the period the
transactions took place. showing at thi.
date profit 10 the company much In
excess OF 100 per cent. based On the mar
Ect figures NJ which tho stock issued
nigh; he recovered
Tho old company was capitalized for
$4,000, 900, divided into 100000 shares.
par value $40 each. The new orssniZa-
NclopGlcnt company, will have 100000
ghaIcs oi stock. par value So each, 100000
shares tn he retained In tbc trca sury,
stockholders OF the old company to par
respond TO the % cents per shave as
scssmcnt- Fifteen cents share must be
raid not later than November 26. 1910,
She remainder on OF before December, 10
Regarding the work done. The report
a3ys;
development work has bccn extern
siyciv prosecuted on the property UP TO
October D. 1910, for upward OF fourteen
months at an expense OF approximate ely
sij.oo0 per mouth. Mining machinery.
ncluding hoists. engines. pumps and
dri,S and utensils and other ncccgsar%
equipment have been installed and op-
Grated Tho property is in excellent con
di.ion frnm this standpoint. Blacksmith
shops, bunk houses. company Offices
Storehouses. coal Uins, gre bins and other
buildings and accessories have also been
provided The plant now installed is said
by experts To he complete in every de-
tail for mine development purposes.
development work 10 date consists OF
the sinking OF compartment. 6xIG
shaft timbercd from top TO bottom, to 4
latsraIs at the I65 and 600-foot points
for q distance of 34S feet and ii6 feet.
respectively. These workings known
as The Eureka. The crosscut at the i60
and 600 have been driven With tho purpose
nf opening up what Is believed 10 be the
continuation of the Copper Flat orc body.
from wlich the Nevada Consolidated n
few hundred feet away has been mining
ore al the rate OF between 100O and S000
tons per day.
ON Tho Clipper aim. another 3-com-
p8rtnent shaft has been sunk TO n depth
nj 235 feet and crosscuttirg and drift =
ing dcue IL orc, the expectation being
that persistent work will reveal the pres
cuce OF a great body Of high grade smclt i.
ing ore nero. Drilling operations have
N