The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-01-03

In considering the foregoing plan.
It should be borne in mind that the
statutes Of Michigan fix a maximum
Tor the capital stock of a mining cor
poration of 100000 shares Of the par
value Of $50 EACH making a total par
value Of $4,000, 900. For the reason
that the aggregate number of shares Of
the constituent companies largely ex-
ceeds 100000, IL is necessary that the
stockholders Of each company (except
in the case of Calumet and Hecla, by
reason Of it's larger value) shall receive
shares Of the consolidated company
less in number than their present
shares in the respective companies.
but the shares so received will repre-
sent a proportionate interest equivalent
10 their present holdings. Under the
proposed plan there will remain e.
COZ shares of the stock of the consoli-
dated company available for future
use, which will give that company a
desirable means Of financing any
further requirements, II such necessity
should arise
The question of which properties
should be included, the operating and
administrative effect of the consolida-
ton, and the values of the several
properties have been studied most
thoroughly by the officers of this com
pany. and their conclusions have been
confirmed by the independent exami-
nation of an outside expert of high
standing and character. ]. Parke Chan
ming, whose report is annexed TO this
circular. The allotments Of stock. as
tabulated above, are based on and con-
form 10 the values thus determined.
Tne plan has been approved by the
boards Of directors of all the com
panies.
1t is proposed that the first board
Of directors OF the consolidated cor
poration snail include the present d.
rectors OF this company.
The more important reasons. which
have Influenced your board OF directors
In deciding to recommend the consoli-
ddtion are as follows:
Description Of Neighborhood.
The maps enclosed snow the three
Iodes known as the Calumet Conglo-
merate, the Osceola Amygdaloid. and
the kearsarge Amygdaloid, and the
locations of the various mines and
properties situated on these lodes.
These lodes are in the northern PENN
sula OF Michigan, run IN general
1ortheasterly and southwesterly direc-
Ion generally spoken Of as north and
'outh) and are substantially parallel.
the Calumet Conglomerate being
artnest west, the Osceola next. and
he Kearsarge farthest east. They dip
It an angle approximately thirty-seven
iegrees from the horizontal. The dip
$ in a northwesterly direction (always
spoken OF as westerly, and as result
'ach lode crosses any given piece Of
property In an inclined plane, which
les nearer the surface on the easterly
ide OF the property and gradually in
reases In depth as II approaches the
westerly side. The Michigan mining
avs limit the rights OF each owner
o the ground perpendicularly below !
Us surface holdings; consequently the |
wner OF the outcrop must cease his
perations upon the lode when the un-
erground openings reach his western
and the owner Of property
vest OF the outcrop must sink vertical /
through barren ground to reach the |
1de at all.
Importance of Economies.
The history OF lake mining shows a 4
radual decrease Of the copper con- 1
ents Of the lodes as tine distance from |
he surface increases. This decrease Is |
ccompanied by an increase In the cost
Z getting out the rock Many dis
overies OF large deposits OF com
aratively hlgh-grade ore in other
arts OF the country and improvements
4 reduction processes have resulted In
great increase in the production Of
)w-cost copper IL Is only by the
pplication OF the most improved ap-
liances and the most economical
evelopment and operation that the
lkes mines can successful compete
'itn the newer districts.
The general administrative advan-
lges apply about proportionally to
ach company. and the other advan- /,
'ges OF the consolidation to the indi-
idual companies are as follows:
aiur,et and HeoIs--
This company owns a valuable plant
hitch has cost fnanv p,fllfopo ~ Al