The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-01-14
C.&A. and sap.
MERGER DETAILS
STATEMENT Is ISSUED BY DI.
REcToRs OF THE TWO CON-
PANlEs-sloeER S. & p.
DIVIDEND.

zona and Superior & Pittsburg have
issued the following circular on the
proposed merger Of the companies to
the stockholders ~
Your directors have long considered
that it would be to the mutual advan-
tage OF the stockholders of both your
companies II a merger of the assets
Of the two could be effected upon terms
that would be fair To both.
The reasons for desiring such merg-
er are:
1. To insure the most economical
mining and reduction of the ores.
The two properties are contiguous
and the shafts so situated as to be of
mutual benefit in the development of
! the others property and mining of the
ores These ores should always be
treated in the same smelter to insure
the best and most economical results.
III. TO conserve the properties and
ore reserves by enabling the manage
ment to take the ores from the most
desirable parts Of the properties with
out arbitrary rule demanding a GER
tain production for each company
The ores of the Warren district are
so variable that il is frequently de-
| sirable to make the best smelling
mixture to take a larger quantity of
ore from one or the other property
than is desired to secure the product
desired for such property-at present
each company has 10 produce its own
ratio of ores to secure the proper mix
ture for it's smelling charge.
III. To strengthen your standing in
the mining and financial world and
make your stock safer and better in
vestment and more desirable collateral
upon which to secure loans.
In Union there is strength. The
merged companies will have ample re-
sources TO make the stock a very de-
sirable investment.
w. Dividends depend upon the cost
of copper, the product, and the selling
price. We believe the merger of the
two companies will decrease the cost.
the production oan De maintained as
at present, or even increased if the
market will absorb IL at a reasonable
price, and your management feels cer-
tain that under all ordinary condi-
tions regular dividends can be paid on
cehe new stock from the beginning.
Your directors recognize the fact
that an exact method cannot be found
to fix the actual OF two mining prop
critics, but they believe that If a merg-
er Is for the benefit of our stockhold-
ers as they think it is. the basis of the
merger must be according to the rela-
tive values of the properties as nearly
as IL can be ascertained by the means
D at our disposal They therefore APP
pointed a committee of the board tc
, take charge of the matter and formu-
, late a plan. This committee secured
. the services of two eminent engineers
Messrs. l.. ID. Ricketts, of Cananea
. Mexico. and James S. Douglas OF
! Douglas, Arizona, whom they consider
: ed the most competent to make the ex'
animation OF your properties, on ac'
> count of their acquaintance with th'
district by actual contact with an'
:. experience in that and other districts
in Arizona and Mexico.
A Your directors have known thes
gentlemen from the commencement o
II our operations in the Bisbee distric
o and have the utmost confidence II
r their honesty. integrity and judgmen
q and recognize their peculiar fitness TO
making this examination and givin
an opinion on the relative values o
!, the properties of these companies.
Messrs. Ricketts, and Douglas wer
instructed by the committee to max
independent examinations as far n
:, practicable but to join in the repor
giving their opinion of the relativ
values. including all assets and futur
: prospects.
These gentlemen with corps of as
sistants spent nearly two months 1
!, examining the properties and othe
assets of your companies, samplinI
!, assaying, studying the geology an
:, mineralogy, accounts, cost sheets. et
and securing all available data of III
operations i'm the district from its dis
covery to the date of their report, Aus
80 ust 18th, 1910.
This report was very carefully cor
sidered by your directors and ma
- jority of the board visited your proper
ties early in November to make pei
sonal inspection.
Your directors, after careful consit
Grafton, therefore, propose the merg'
of the two companies on April Is
1911, under the following plan:
/. That the organization of the Ca
umet and Arizona Mining company
ed used as the basis of the merger by II
at creasing the authorized capital stoC
I'm from two hundred fifty thousand (25o
000) to six hundred fifty thousaI
(65O0O0) shares of the par value
ra ten dollars $4,000 each.
n III. That one Cd share of the Il
creased capital stock OF Calumet al
Arizona Mining company be exchan
ed for three and one-half (3h) shar
of present outstanding capital of $
perior and Pittsburg Copper company
In III. II hfty per cent ESQ ner cent?
n -