The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-11-04
BIC BOND ISSUE
BY SHELTERS
Guggenheim Companies Have a
New Plan Of Financing
Their Issues.
FIFTEEN MILLIONS
TO BE INVOLVED
SmeIters Securities Will Pay
Its obligation to the Ameri-
can Smelling.

Tho Wall Street Journal gives the fol-
lowing detailed program OF the Gugscn'
helm propositions:
The American Smeltcrs Securities Co
and the American Smelling Il Refining
Co. will make public their plan for finan-
cing in the near future. The American
Smelters Securities Co. is TO issue SD
900 600 8 per cent bonds convertible in
FIVE wears al par. The bonds will be sold
To Kuhn, Loeb H. Co. The proceeds Of
the bonds Will enable the Securities Co.
10 pay off its Indebtedness TO the Amer,
lean Smelling s Refining Co and add
close TO $4,000 oOo to the working assets
OF the former company
The American Smelling & Refining Co.
has arranged to purchase inc common
Co held by the Guggenheim Exploration
Co. amounting to ST. .249,ooO, but which
is carried on the Exploration Co. $ books
al nominal value of 81, This VIII place
Inc American Smelling & Refining Co. in
possession OF practically the entire $50,
100000 common stock of the securities
co. 1t is the purpose OF the American,
Shelters Securities Co. 10 begin initial
dividends on tho common stock III the
near future.
Smclters Securities total earnings for
the year ended May ST. last. we're sI.2l3.-
i15 and net earnings. before appropria
tions for construction, improvements. etc,
were s6.202.3lo. The balance of net in
come after appropriations totaled SO 6o@. :
AS. Dcducting preferred DIVIDEND on
class IA OF S1o20 600 and sl5oo,oo0 ON
preferred class ''B" left A surplus for the
year of 81 l33 AiS. equivalent TO approx
For the preceding year the balance to
surplus was s5el .0i2, the increase OF S6l2. p.
100 coming through the development of
tho copper companies in which the Sc
curities Co Is interested.
Appropriations for construction and i'm
provemcnts last year totaled soS2 oSa.
while s616.l25 VAS set aside for reNalua- :
tion OF metals and $500 700 appropriated
for revaluation Of investments. II the
last two appropriations had not been
made. and they are not likely to rcoecur
this year. Securities would have shown
approximately per cent on Its s3o.Voo,0oo
common stock. As earnings this year are
expected to show al least some gain over
last year. il appears that the company
will shortly be In position to CONSIDER
2 common dividend distribution. On the
basis of per cert per annum distri-
button on the common stock of the Sc
curIties Co. the American Smelling g. Re
hning Co. would receive 81 100000 on It's
holdings in the latter company
The matter of financing the American
Srelters Securities Co. was taken mp az
lively upou the return from abroad OF
Daniel Guggenhein,. An official statement
NIL be forthcoming shortly. The follow
ing statement; of current assets and cur
rent liabilities as last reported hy the Sc
= curities Co. shows the necessity OF ilnan-
cling:
Current assets:
Metal stocks ..,e.,-,.-'. !'tla.sss
c,esh a33 99s
Total .............-,......s ,752 900
Current liabilities:
Deferred liabilities ............S 2,163 920
Net current liabilities. ..,....... 1o.Sl6, 40S
Unearned treatment charges. i,5S4,555
Ioiai 's si'''"''"o
Excess current liz abilities. IS 3.7S2 SS1
The item deferred liabilities repre-
Seuts the amount still due TO the stock
holders of the Baltimore Copper Smelling
& Rolling Co., which Is being reduced by
semi q nnual payments In accordance
with the contract Of sale. Net current
liza bilities are chilly advances from the
American Smelling e. Refining Co bond
issue nj the proportions now under con-
sideration would mean. at s per cent an
increase in fixed charges OF 100000 n
wear The American Smelling e. Refining
had sIe1 .000 OF bonds Of a subsidiary COM
pany outstanding AT the close of It's last
fiscal year. bat which will be retired this
year. Beyond thai, neither the S'nelters
nor the Security Co. has any funded In
debtedness.