The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-02-20
SHAW REPLIES
TO COMMITTEE
CALUMET & HEcLA DECLINES
TO ACCEPT BOSTON BROKERS'
HOLDING COMPANY
SUGGESTION.
leau & sturais, WireA


Boston. Feb. 2O.-President Quinc.
A. Shaw of the Calumet & Hecla Co.
makes reply TO the letter of Geo. S
Baldwin of the Boston stock exchange
committee. declining to accept the
committees holding company sugges-
ton, which provided for the issuance
of four shares of holding company
stock for one of consolidated Calumet
X Hecla and the reduction i'm the
trading units to something over $50
per share.
President Shaws reply follows:
Boston, Feb. is. 1911
George 5. Baldwin, Esq. Chairman;
Dear Sir: / beg 10 acknowledge
the receipt OF your letter and the copy
of the report of your committee which
4 find awaiting me on my return from
the west.
Il wish to thank YOU and through
you the committee fer the patient
hard work which you have done, and
10 express to you my appreciation Of
the courtesy shown to the officials of
the companies at the long series of
hearings held.
you request that the directors OF
the companies should Immediately
take such steps as are necessary TO
SO adjust the capitalization of the
new company through a holding COM
pany or otherwise that the number of
shares issued shall be greater, there
by giving the stockholders a security
selling i'm the market around $50
share rather than 5000 has received
our careful consideration.
'Many OF the stockholders bought
their stock and now hold 1t as an in
vestment and would be unwilling to
exchange their investment for the
more speculative stock OF the holding
company. The directors believe that
they should not endeavor to make
such a radical change in the character
OF the security against the wish of a
substantial number of the stockhold-
ers. and they believe further that in
asmuch as the exchange Of the stock
of the new company for that of a hold /
ing company must Of necessity be /
optional with the holders, they would /
not succeed in getting a majority Of
the stock deposited with holding /
company IL they should attempt 50 TO !
do.
Apart from the above mentioned |
reasons the directors do not believe it
would be a wise policy 10 adopt such |
. plan at present
"rhe directors Of the various COM
panies desire 10 protect the interests |
OF the small stockholders to the full
est extent i'm their power under the /
law, and which under which this con-
solidation may take effect. In order
that stockholders, who. by virtue Of /
their present holdings, would only re-
ceive rights 10 a fraction OF share
Of the new stock and TO whom it might
be a burden TO buy the additional |
rights necessary to receive fun
share of the new stock and so keep
their present stock interest We have
arranged with the old Colony Trust
company 10 have H. issue its receipts
upon the deposit of blocks Of twenty
rights. which rights will eutitle the
holder to their proportion OF the divi-
dends on the new stock.
we believe that such an arrange
mcnt viii permit the small stockhold-
ers receiving the benefits OF the con-
solidatiou without material expense in
purchases of additional rights, and
they can so remain in their interest
until such time as they desire TO sell
rtpot, "a -frIar N, "a riot or for auv otbar
reason which at the time seems wise
TO them.
Yours Very Truly,
Quincy 4. Shaw. President"