The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-08-21
REASONS GIVEN
FOR ALTA PLANS
South Columbus Company Sends
Statement in Support OF
Consolidation.
WOULD LIFT STOCK y
FROM CHEAP CLASS
Details of Proposed Merger
Plan Is Set Forth i'll

The following statement has been ror
warded TO the South Columbus Consol'
dated stockholders by Secretary Arthu
Magon, which, in view OF the OPPOSE
ton TO the merger plan mentioned, WIZ
prove of much Interest:
The matter of successfully financing
the company has engaged the serious
attention OF the board OF directors dur
Ing the last six months. and no salts
factory conclusion has been reached un-
til recently, and after carefully inVestl-
eating the situation and becoming con-
versant with II. we are convinced lhat
available for development work, tha
company's properties could be converted
into thorough-goin mine. and have
the possibilities of becoming one OF inc
famous properties OF the country. This
being the case. 1t has been determined
by the board OF directors that the COM
pany ought to be financed in such
manner as will put II upon a producing
and concentrating basis.
During the last sixty days the Off
GERS OF this company nave brought It's
affairs to point where the property can
be adequately financed, assuming that
the plan devised meets the cooperation
and approval or the stockholders In or
der TO carry out the plan recently con-
ceived by the board of directors, a num-
Der OF things will have TO be done. The
suggestion fs to:
First-Organize a new company. with
an authorized capital stock of 100000
Second-This new company TO take
over all of the properties Of this COM
pany, and those OF the Alta Is Hecla
Mining and Milling company. whose
properties are contiguous TO those of this
company. and as nearly as can be de-
termined are of equal value.
Third-Dach of the companies whose
properties are thus turned over, namely,
g.
pany, to receive 100000 shares each OF
the capital stock OF the new corpora
ton, or a total of 100000 shares, leav-
ing in the treasury OF the new company
100000 shares. which amount will then
be sold at the highest possible price and
the moneys derived therefrom used in
the development OF the properties thus
acquired.
Fourth-By the new plan It IS proposed
that the shareholders OF this company.
after the transfer Is consummated, ex-
change their holdings at the rate OF Ave
shares of this company for one share OF
the new company, BY this means tho
100000 shares OF the new company will
be distributed proportionately among all
the stockholders OF this company.
The most important result OF this CO.
operation, from a financial point Of view,
at any rate, Will be that the number OF
shares outstanding and hawked on the
market at very low figure will be con-
Yerted into q stock that will be COM
pletely lifted out OF the cheap class, and
the new company VIII have practically
double the amount Of acreage Of this
company, and all of 1t OF equal value, as
near as can be determined. with tho
property which the company now has,
The plan has come as a conclusion to
very diligent study and investigation OF
the problems confronting the company
at this moment, and is regarded by theS
directors as the wisest course for the
company to pursue to realize upon IT'S
assets and convert stock which pays no
dividends. into 81 stock that WILL we
think very shortly net q profit to its
holders. We feel quite sure that the
stock OF the new company which you will
get under the above arrangement will
have higher cash value by far than the
stock which you now hold. assuming that
the plan proposed and above set forth
meets with your approval.
therefore we, the directors, submit
this matter to you for your careful con-
sideration, and trust that 1t will receIve
your hearty approval, We are enclosing
herewith notice OF meeting TO be held,
together with Il blank form of proxy
which you will kindly use II you are NOT
able to be present at the time indicated
in the accompanying notice. Kindly
strike out the name OF the person whom
you do not want TO act for you, and in
case neither is satisfactory scratch
both and substitute the name of tho
person who will be present and who is
satisfactory. "