Mohave County miner., 1910-01-08
The 5ineham-Ely Combine.

ne 0lNSNdin-Eiy (OulDtHCs
In speaking of the proposed consoli-
dation. or merger, of the Utah Copper
ana Boston Consolidated. of Bingham.
Utah, and the Nevada Consolidated, of
Ely, Nevada, the Denver Daily Mining
Record says:
It seems little remarkable that a
transaction so large as the merger OF
the Utah Copper. Boston Consolidated
and Nevada Consolidated companies.
potentially capable of producing 2j)-
100000 pounds of copper per annum
and representing a value of l25,0OJ,-
00OS at the present time, should attract
so little attention from the general
press of the country. Even the larger
merger of copper producers, which
has been discussed of late with no
definite outcome as yet, has not re-
ceived much notice from the general
dailies, Notwithstanding it promises to
become one of the three largest cor
porations in the world.
The Bingham Ely merger is virtual
ly an accomplished fact, for t has re-
ceived confirmation from officia
sources. The basis of the union has
even been intimated, and the figures
are well worth nothing. Taking Utah
Copper as the ground upon which the
reorganized concern will be built, it
will be recalled that its capital IS 75O.-
600 shrres, partly held for the convers-
ion of bonds. The Boston Consolidat-
eds capital Liabilities are approXi-
mately represented byi its 775, 200 shares.
Therefore the merger of these two on
basis Of two and half shares Of Bos-
ton for one of Utah give an insight in
to what is considered the relative
worth of these two Bingham enter
prises. To begin with Boston CJnsOli-
dated is not so fully equipped as its
neighbor, and is perhaps not so well
situated financially. 1t would require
perhaps, to bring it up to the stage of
productivity possessed by the other.
Moreover, its ore resources will prob
ably not prove to be more than one
half as great as those of the Utah
Copper company, although they are of
similar character and merge into each
other. The real basis of exchange EVIL
IDENTIFY rests upon the question of ore
resources, which is the main thing in
any mining enterprise.
The spectators are not so certain of
the basis of union between the Nevada
Consolidated of Ely and the Bingham
enterprises. Nevada Consolidated has
an authorized issue of 100000 shares,
which will provide for the absorption
of Cumberland Ely, already effected,
and the conversion of bonds. Practi-
cally all of this stock will be outstand-
ing, if not now. Therefore, on a share
basis. the Nevada Consolidated stands
in a relationship to Utah Copper of
about eight to three, so that, if they
were to Join on an equality, two and
two-thirds shares of Nevada ConsOli-
dated would be turned in for one share
of Utah Copper. II would appear,
however, that they are talking of two
or two and a half for one, which seems
to indicate an intention to regard
Nevada Consolidated as the superior
Or basis of ore resources, this is not
true, but the costs of producing copper
appear to be materially lower at the
Ely mine, made possible, to some ex-
tent, by the offsets which the company
receives from its railroad operations. 5.
Moreover, this company is the owner
of the smelter which treats its ores
and its transportation costs are low.
The grade. of its ore also averages
higher.
There is no economic advantage in
the union of the Ely and Bingham
enterprises, unless it be in the consoli-
dation OF control of the output. In
the case of Boston Consolidated and
Utah Copper together, there is. how
ever. a decided cause for the union.
They are naturally one property, and
the separate operation of them is an
economic waste. Both will undoubted-
ly be more valuable under one owner
ship.-Salt Lake Mining Review.