The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-09-09
Brokers Gossip
Amster on consolidation.

AnlSteF on
President Amster when asked for his
opinion OF the proposed financing plan
I'm the consolidation of the s & n. and
Arizona Commercial properties, said:
Il think under all the circumstances
Il is absolutely the best plan that could
be devised To all interests and pur-
poses Arizona Commercial stockhold-
ers are being assessed from SO to 81
per share. according 20 the valuation
given the new Superior and Boston
stock. And instead of the shareholder
receiving nothing for his assessment,
as generally happens in similar cases,
he receives a pro rata share I'm a first
mortgage on the combined properties.
Il believe also that the Arizona
Commercial bondholder is being fairly
treated and | shall be greatly surprised
If the assent of the required 75 per
cent is not quickly forthcoming. II
fail TO see the financial or strategic
advantage 10 be gained by the bond
holder who refuses 10 come i'm. and
sincerely believe that the bondholder
who assents and takes new Superior &
20 work out OF his investment without
loss and probably a substantial profit.
Il have heard that some small bond
holders are not particularly pleased
with the plan ON the ground that they
are not receiving as much as they give
up and that holding a first mortgage |
claim on the property, they are in a !
position to demand better terms. I
think this is false reasoning and does |
not properly view future responsible !
ties
The bondholders should bear this in |
mind: The company is at present |
without funds. and while all under |
ground operations have been suspend |
ed IL Is still costing the company be- |
tween $4,000 and $4,000 per month for
pumping who is 10 put up the neces-
sary working capital under present /
conditions unless il be the hondholder9 |
II the present plan is not accepted il 4
means that the bondholders must f.
nance all future requirements and
question If they are disposed to as
sumo this obligation.
The new 100000 bonds on the
consolidated properties should be an /
attractive security as Superior and
Boston has.to date expended in devel-
opment work over 81 600. 900. while Ari-
IONA Commercial has similarly expend-
ed over $4,000 600 Besides this we Il
have expended $25O,OO0 on our smelter. Il
$4,000 in building our railroad and
100000. more or less in surface equip II
ment. which together with the surface
equipment. including hoist, etc, al SUI
perior and Boston. makes n total ex-
penditure FOR surface construction Of
over s5.505.OOO
Il am urging all my friends 10 accept
the new plan. the success Of which is
assured by the underwriting already
secured.
"Of course the Arizona Commercial
bondholders can block the scheme II
they so desire. but I cannot make my I
self believe that any sober minded
hondholders contemplate such a fool
hardy step.
Il recently received a letter from ]
General Manager George Kingdom of
the old Dominion Copper Mining CO.
IN which he says: 1T is extremely un-
fortunate that the Arizona Commercial
co. has been compelled to shut down
before YOU hal cut your vein on the
18th level. and reached a point where
YOU went through that good ore with
your diamond drill, as we all know in
Globe that you arc worthy OF n good
mine here and speaking personally. I
have not lost hope IN Arizona CONNER
cial ground. I was over az the super
for & Boston property the other day
and went in their Wine. which is about
80 feet below the 10th level They
have a fine looking vein there, which
they have crosscut ten feet, an en- ore.
and they are not through the vein yet
The vein Of course is still broken up
some and IL is not all good ore. but IL
does look very strong. and feel viii
make good. In some places they have
ore that win 60 10 per cent Co - per
cent. with streaks of very rich mater
ial two feet wide; then. again. there
is n lot Of low grade ore followed by I
boulders Of good ore"