The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-02-28
R. |. ACASSIz
MAKES REPLY
Continued from Page I

that each and every detail has been
given due consideration.
"Gains-'A-A one-seventh interest
in the consolidated company during its
existence
This is the meat of the whole mat
ter. Ii your directors are right, the
value of the combined properties is
vastly greater than the aggregate
value of the combined properties is
IL the relative valuations given the
several companies are correct Osceo-
Ia gets its proportion OF increase in
the aggregate value of the property.
your directors believe the relative
valuations are as nearly correct as pos
sible that they can never. until toward
the end OF life of the mines, be more
correctly determined, and that the adj
vantages to be obtained more than OFF,
set any errors that may have been
made.
"'B-A one-seventh interest i'm econ
| omies developed throughout the entire
property which, however. cannot be
fully effective for some years. The on
ly immediate economies that can be
put into effect are a restriction of pro-
ducing by closing down some of the
Improbable mines now i'm operation
and n reduction i'm annual outlay for
machinery. Other economies, like bet
ter railroad connections. better stamp
mill locations and increased efficiency
mills and mining machinery, cannot
be effected, for years. and then only at
considerable expense.
"rhis statement shows a failure To
understand the nature and scope of the
proposed economies. Many and very
material savings can he made this
summer Rock can be sent to mills
best suited To It's treatment. and a
greater saving of copper made at no
additional expense and at the same
time a saving made in milling and
transportation charges. Surface equip
ment can be moved from one location
to another at slight expense. Under
ground work can be comprehensive
planned and done, and immediate saw
ings can be made in smelling costs.
"Osceola is well developed. But its
mill is not equipped To handle Kear-
sarge rock to the best advantage. Its
hosting machinery is limited To a
depth of five thousand feet. The Os-
ceola branch is now down to a depth
Of $500 feet Number l shaft, North
Kearsarge. is now down to a depth of
over $500 feet. independently, Osceola
will have to buy new machinery when
the time comes to handle its rock at
Il greater depth than 5000 feet The
consolidated company can supply part
of this machinery at very small ex-
pense by moving it from the Calumet
workings
"Your directors are not decrying
your property. They have stated the
situation as it exists to the best of
their knowledge and belief.
"'At least so per cent of the prom
ised economies could be had in a
minor consolidation of Osceola Allou-
ez. Ahmeek and Centennial, and we be-
lieve such an arrangement would have
served the best interests of the COM
panies concerned
your directors do not know on what
information Messrs. Tucker Hayes &
co. base this statement. All the infor- |
nation at your directors disposal con- !
vinces them that nothing like so per
cent of the economies possible to the
larger consolidation can be made in
the smaller consolidation referred to.
1t should be borne in mind that the
whole proposition is one not of abso-
lutte values, but Of relative values. and
that relative values were arrived at.
not on the basis of the present de-
pressed condition of the copper mar
ket, but on a basis which directors be-
lieve to be the average condition to be
looked forward to.
THE directors believe that the plan
proposed should go through, but If
sufficient number of stockholders do
not want the plan adopted, it will not
go through. A failure to vote may be
as effective as a vote against the plan
Every stakeholder who favors the
plan is requested to send in his proxy"