The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-08
Ratio of exchange

The issue OF stock of new consolidated
company is S2S,56S shares. Of which
lT0.S54 shares represents Calumets own
property and 69.l66 shares Its holdings
OF subsidiary stocks. or a total OF 24O.-
900 shares.
The 170SS4 shares represent the value
OF Calumet & Hecla property holdings.
exclusive OF the value of its shares OF
stock in the other companies entering
the consolidation. but inclusive OF the
value OF It's shares OF stock OF the Gratiot
sharcs) and the Isle Royale Copper com
pany equivalent to 1925 new shareS). In
addition to the 1T0.SS4 shares. the Calu-
met & Hecla Mining company will re-
consolidated company in exchange for its
holdings of shares OF stock in other
companies which enter into the consoli-
dation. SO, thst each stockholder OF the
receive in exchange for each share of
Calumet & Hecla stock and 40-100
shares OF the stock of the consolidated
company,
The Gratiot Mining company aud the
Isle Royale Copper company, being or
ganizcd under the laws OF Maine and
New Jersey. respectively. cannot take
advantage OF the Michigan statute under
which the Calumet & Hecla consolida-
ton Will be effected; but the consoli-
dated corporation shall. II stockholders
OF the companies vote TO take the. neces-
The Isle Royale, which has 100000
shares OF stock, will be allotted l0,50O
shares OF the new stock. OF at the ratio OF
7-l00 shares OF new stock for one share
OF old, the Gratiot, with 100. 600 shares,
Will receive 500 shares of new stock, or
at the ratio OF l~1200. making a total for
these two companies of II 900 shares OF
new stock. lnasInuch as the new cor
poration holds 2175 shares OF the Gratiot
and Isle Royule. only Ss2o shares OF new
stock will have TO be issued. making d
total outstanding of 237.293 shares
The Statutpg Of MichicnD a min IN
for the capital stock OF mining cor
poration Of 100000 shares OF the par
value Of SIS each. making total par
value OF sl0.000.000. For the reason that
the aggregate number Of shares OF the
constituent companies largely exceeds
800 900. IT is necessary that the stock
holders. OF each company (except In the
case OF Calumet G. HccIa, by reason OF
lis larger Valuc) snail receive shares Of
the consolidated company less in number
than their present shares in the rcspec-
tive companies. but the shares so re-
ceived will represent proportionate in
terest equivalent to their present hold :
ings.
Under the proposed plan there will
remain 52,607 shares of the stock of the
consolidated company available for fu-
turc use. which will give that company
means OF financing any further require
ments. il such necessity should arise.
The plan has been approved bv the d.
rcctors OF all the companies. II Is pro-
posed that the first board OF directors
OF the consolidated corporation shall in
ciudc the present directors OF this COM
pany-
In euumcratinss the more important
reasons which have influenced the direc-
tors in deciding To recommend the con-
sol!dation the statement saws regarding
the Importance OF economies:
The history OF lake mining shows n
gradual decrease NJ The copper contents
OF the Iodes as the distance from the
surface increases. This decrease is ac-
companled by an increase In the cost OF
getting ont the rock. Many discoveries
Of large deposits of compa rativeIy high
grade ore in other parts of the country
and improvements In reduction processes
have resulted In q great increase In the
production of low cost copper. 1t Is only
by the application OF the most approved
appliances and tho most economical de-
velopment and operation that the lake
miners can successfully compete with the
newer districts
The advantages to he gained by the
consniida ton are divided by the plan into
the following classes, Mining. milling and
smelling, transportation. general equip
Inent and supplies. administration and
financial.
Consolidation will make available for
dividends profits now being used by the
Individual companies In paving debts. in
doing development and construction work
and in accumuatnE surplus for the
debts between the several companies will
he wiped out. the amount OF surplus re-
uuiTc' for the ono consolidated company
VIII be much less than the aggregate