Los Angeles herald., 1910-12-23
SHELTER TRUST PLANS
BUSINESS EXPANSION
Guugenheim Calls a Meeting to
Pass Upon Proposed S15,-
100000 Bond Issue

SSSYSSS @OatS bSS~N
President Daniel GugPenheim has is
sued a statement to the stockholders OF
the American Smelling and Refining
company giving in detail the rights to
subscribe for the 100000 of per
cent gold convertible bonds of the
American Smelling Securities COM
pany. ..
been called for January 5, 1911, for the
purpose of ratifying the new nnanclal
plan.
In his statement to the stockholders
Guggenheim says:
This company is the owner of $l7,-
ISL ,OO0 par value, Of the common stock
of the American SmelterS securities
company. 1t is the guarantor of the
$50 10000 of series B preferred stock or
that company. 1t is a large creditor OF
the Securities company. The prosperity
of the two companies is, therefore, in
terdependent. The funding of the IN
debtedness of the Securities company
Is, therefore of Importance to both.
"At the time of the organization OF
the Securities company in 1913 your dl-
rectors foresaw that the enlarged pro-
duction of ores would require a vast
expenditure Of capital in order to slheIt
and refine such increased product, The
Securities company was successfully or
Eanized without the expenditure or any
capital on the part of the American
Smelling and Refining company, ana
Notwithstanding the enlarged opera
fions of the Securities company, there
has been no necessity OF payment, even
of a single dollar, by your company in
the discharge of its obligation as guar
antor of the series B preferred stock OF
the Securities company. The WISDOM
of this policy Is shown by the fact that,
while the product of your company at
the time of the organization of the Sc
curities company has reached total
of approximately $S0,000000 per annum,
the annual value of products of both
companies today aggregates $l90'OUO'oUU'
TIME TO EXPAND
"The time has now arrived for this
company to prepare for turther IN
crease and development of its business.
Plans have accordingly been devised,
particularly in respect OF the receipt OF
ores and furnace material from ABROAD
The reduction works, located IN the
Tinted States, by reason of their enor-
NOUS capacity are capable OF smeithg
and refining ores shipped from every
quarter of the globe.
"This com panyi is now in receipt OF
ores and bullion from Africa, Australla'
South America, China and Alaska. AS
vet IT Is only lGdSIJlG ~ - S"'i9l'O4
Alaskan ores produced on the seacoast'
hut with the construction of railroads
it is believed that a great mineral pro-
duction will flow to the smelling and
refining plants Of this company.
'To prepare adequately for the fu-
ture OF this company, and to fund Clie
debt cf +7p securities company, II ~
deemed advisable that the Securities
company shall issue and your COM
panv acquire $4,000 600 Of per cent
1ifteen-year gold debenture bonds OF
the Securities company; that the latter
company shall thereby repay the al
vances made to Ii and discharge its
floating indebtedness; that the bonds
so acquired by this. company be made
convertible into the common stock or
This company, on the conditions set
forth in the accompanying letter OF the
secretary, and that the preferred and
common stockholders of this company
be afforded the opportunity TO SUP
scribe pro rata for the bonds or the
Securities company thus convertible.
Through the expected ultimate con-
version of the bonds into common
stock and the operation OF the sink
ing fund, the Smelling company should,
rs a result Of this transaction, receive
aDproximately SIS 900 additional
cash capital, which, with the present
cash capital, will make total of ap-
proximately 100000 cash.
ORES IN SURPLUS
"The ores and metals in process Of
smelling and refining now held by the
company, together with the present m
vestments and the necessary stock
fuel, etc, aggregate at least S23 O0UO
1t can, therefore, be confidently eX-
pected that the cash assets or the com
pany will equal S50,00000o, and tnat
the preferred stock of the company
ant value offset
bv cash and quick assets. The COM
mon stock will be represented by the
property account of $S6.000.O00, to winch
should be added the value Of the W.
751 900 par value Of the common stock
Of the Securities company. Such bonds
as remain in the treasury OF the COM
pany not retired by the sinking FUND
win receive interest at the rate Of 6
per cent per annum.
TT is believed by the directors OF
YOUR company that the holders of the
preferred and common stock Of this
company will profit greatly by carry
INC out this plan The increase Of
business, and the increasing value Of
the stock held by it IN ihe Securities
company, should assure not only the
payment of the per cent dividends
on the preferred stock but should also
enhance the dividend-earnlng power OF
the common stock. Further adVan-
tages are secured TO both classes Of
stockholders by exercising the privi-
Iege which is to be offered 10 them,
of subscribing pro rata 70 the entire
issue Of SIS. 100000 Of bonds Of the Sc
curities company, convertible into the
common stock Of this company, right
which ii is believed will prove of con-
siderable value.
For these reasons We bespcak your
Endorsement OF the unanimous action
of the board Of directors fayoring the
adoption of this plan"
SNKhwa astk nrnnE p tEFff