The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-09
HALF MILLION FOR
ELKCOAL COMPANY
Bond Issue Fioated to Develop
Mines at Kemmerer,
Wyoming.
PLANS TOLD AT DINNER
SHAkEUP IN MANAGEMENT FOL-
LOWS RAISING OF MONEY.

The firm of Lemley & Johnson, Chi
cago brokers, has agreed TO sell 100000
worth Of bonds for tSe Elk Coal COM
pany for properly equipping and devei-
oping the mines of the company near
Kemmerer, WyO. L. V. Rice, consult
ing engineer of the firm OF Robert
Hunt & Co. of Chicago, at a banquet
given at the Commercial club last
night referred to the mines as the
greatest deposit Of semi bituminous
coal IN the world.
The Elk Coal company has been re-
organized and the property will be
made a big producer when increased
operating facilities are installed. The
opera ton of the mines viii be under
the direct management of Mr.. Rice,
who, after spending the past week on
the ground and in the workings of the
company's property near KemmeTer,
accepted the offer of mana cement.
With added equipment for extensive
and economic coal mining, it is expect
ed that the output of the Elk Coal
company's mines viii be increased from
400 to 5000 tons daily, and hence will
become one of the greatest producers
III the intermountain country.
If there have been any stockholders
in the Elk Coal company who doubted
The immensely OF the coal deposits
owned and controlled by the company,
and of the high grade Of coal contained
thersin, they must have been disabused
of the idea after hearing the report of
the Chicago expert, who made a report
of his inspection of the property at a
meeting of stockholders and pros
pective bond purchasers last night.
Mr.. Rice backed up his opinion by
subscribing for $1,000 of the bond issue
10 be made and floated in thirty DAYS
at the END OF which time active opera
tons under the increased mining ca
pacity viii be commenced with the half
million dollars which will be available
at that time.
Means Much to People.
OF the forty stockholders and prominent
business men OF Salt Lake who met last
evening to discuss the new move in the
aIIalrs OF the Elk Coal company and its
reinforced activity, there was not one
who did not realize that the opening of
this colossal deposit of coal which for so
many years has remained practically dor
mant, meant to Salt Lake and the entire
intermountain country.
While there are about 100 stockholders
IN the Elk Coal company, q large percent
age of the stock was represented at the
banquet The Elk Coal company is cap
italized at 81 10000. There are $50 600
shares outstanding at the par value of
81 per share. There are $4,000 shares of
treasury stock. A large amount of the
stock is held by Salt Lake men. Among
the heaviest stockholders are ]. NJ Jen-
son, president of the company; 2. 2
South A L, Hayer. George Spencer, A.
bert Heath, W. P. Funk. A L. Hyer of
Lewiston, Utah, and John ]. Tobias of
Chicago Much Of the stock is held in
small blocks throughout Utah and Idaho.
1t is also scattered in all parts of the
country.
II has been admitted that there has
been some dissatisfaction among the
shareholders because the property with
its immense deposit of coal has not been
made TO pay dividends. The manage
ment has all along declared that it has
been hampered by lack of capital to
work the property on a scale sufficient to
make 1t paying proposition.
To Float Bonds.
The stockholders, it is said. have al
ways had implicit confidence in President
Jensen, and at a meeting held some time
ago he advanced the idea OF g ing east
and endeavOring TO float a bond issue of
$4,000. This move was suggested to the
officers OF the company by Frank Knox,
president of the National Bank of the Re
public, who had visited the property.
Accordingly. Mr.. Jensen and others in
terested went to Chicago. The firm Of
I4e.nley & johnson, brokers. was inter-
ested, and a contract was entered into
with this firm to float a 100000 bond is
sue, bearing interest at the rate Of s
per cent per anHum-
Lemley & Johnson desired first that
the coal deposits on the nearly 5000 acres
owned ana controlled by the company be
passed upon by competent and reliable
expert. They sought the firm of Robert
Hunt & Co. and MIR. Rice was desig-
mated as the man to make the examina-
ton The party left Chicago ten days
ago. They spent a week on the coal
fields near KemmCrer and came to salt
f1s-l hot onto
tions made by Mr.. Jensen and his assO-
ciates had not been misstated. but en-
Enthusiastically admitted that they had IN
derestimated the proposition.
In agreeing to float the bond issue
which meant the regeneration of the
company Lemley & johnson asked that
the management be reorganIzed; that
lhe directorate be composed OF eleven
Instead % six members and that an
executive committee be appointed This
has been tentatively greed to and only
awaits a meeting Of the stockholders to
amend the articles Of Incorporation.
Company Reorganized.
Under the reorganization of the COM
pany +. r. South will retire from the
mana cement of the mines which are To-
Gated Just off the Oregon Short Line
about miles south and west of KEN
msrer, WyO. Mr.. South attended the
banquet last night and was one OF the
first TO announce his approval Of the
new movement. He subscribed for
So 600 of the bond issue.
DIR. Clinton G.. Lemley and George
Peckham Johnson have acquired stock
in the company and have also taken
$4,000 worth OF bonds eaCn.
The new officers of the company are
j. NJ Jensen, president; +. +. South,
George Spencer of Randolph, Utah, DR..
Lemley, Geo1 Sc Peckham Johnson, L.
V. Rice. members of the board of di-
rectOrsi r. s. Woodruff, secretary, and
Edgar 5. Hills, treasurer.
George L. Lyndon, president of the
Griffin Wheel company. one of the big
gest concerns in the United States, has
also become interested in the company.
He with Walter r. Mitchell. who for
twenty years has been prominent in
the affairs Of the Chicago High school,
and Judge j. j. Tobias, dean of the
Chicago law school, will be added to
the new board.
The executive committee under the
new regime will be composed of j. NJ.
Jensen, l.. Y. Rice, DR.. Lemley G. p.
Johnson and G. l.. Lyndon.
The banquet last night was given by
DR.. Lemley and Mr.. Johnson that they
might have an opportunity OF meeting
stockholders and prominent citizens of
Salt Lake. Covers were laid for 35.
Among those present were John Henry
Smith, Heber J. Grant, Francis NJ. Ly-
man, Hiram r. Booth, Frank Knox,
Harry P. Clark. Z. o. Lee. NJ. 81. War
ner, Wesley Z. King. W. p. Funk and
officers OF the company.
President Jensen introduced DR..
TRuaIeV WIN told of his visit 70 the