The Calumet news., 1911-02-21
Courtesy of Gay & stusgis, and Paine,
Webber q Coz

Courtesy of Gay & Sturgis, ard Paine,
Weber & Coz
Boston, Mass, FEB. 21.--The stock
holders of the c. &c II. Mining Co
ard Subsidiary properties viii shortly
be in receipt of a four page circular
from the directors of the c. & III. This
statement reviews the conferences
which have taken place between the
directors and the stock exchange
committee and makes a reply al
length to various statements made In
the Chadbourre circular letter OF Feb
ruary 8. There is also Incorporated a
telegram from Globe, Arig.. dated
Feb. II, from ]. Parke Chapning, who
wires President Shaw as follows:
"Thomes L. Chadbournc's reference
to me in his letter OF Fob. 9th is en-
tirely unwarranted. In valulng a
property l know neither one side or
the other, and it's past record and flu
ture prospects alone guide me in my
decision.
My engagement was by the officials
Of the Ahmeel1 Mining Co. and my re-
port was directed to them. In valuing
the various properties a similar point
OF view was taken in each case and
the results are relatively correct and
the problem must not be fogged by
referring to absolute values
'In tho first part of this circular,
IL. .
knowledge on the stand of mine valu-
ations I'm his reference to ore reserves.
Calumet & Hecla's conglomorate is
practically blocked out by shafts and
drifts and its value Is known. where
as Ahmeek has been given credit for
an enormous tonnage of rock which
no one has as yet seen and whose val
ues can only be determined by taking
into consideration the history of the
district"
+. (Signed), j. Parke Claiming.
The circular further says:
"The directors have had the man
agement Of the properties involved for
two years. They have carefully stud
led the operations of the properties
during those two years. AS a result of
that study they came to the conclusion
that the best interests of every prop
erty required consolidation. A care
full study of the properties and of the
consolidation of several groups was
made Each consolidation showed
some economies, but as the study pro-
gressed il became evident that the
consolidation finally proposed was so
much better than the smaller consoli-
dations that to recommend the later
would be a breach of their duty to
you. Your directors are convinced
that all the properties should be con-
solidated and that every day lost be-
fore the consolidation becomes effect
i've means some loss to the companies.
members of the Boston stock exchange
after an exhaustive study of the sub
ject unanimously reported that in
their opinion the intrinsic worth of
the combined companies will be
greater than the intrinsic worth of
the several. companies; that your di-
rectors have made an exceedingly
thorough and honest effort to find a
Just basis of consolidation; that the
principles of arriving at the valua-
tions Of the several properties are cor
rect and that the plan Is fair. All
that has taken place since the plan
was announced has convinced your
directors of the correctness OF their
original position They now again rec
ommend the consolidation as propos-
ed"
The statement is again reiterated
that the directors are not I'm favor Of
recommending a radical change i'm the
character of the G. & III. security as
suggested by the holding company
proposition of the stock exchange
committee against the wishes of a
substantial number of stockholders"
and repeat that they do not believe il
will be wise policy to follow such a
plan at present. In referring To the
Osceola situation the directors say i'm
part:
The Osoeola Situation.
There Is no doubt that the con-
glomorate lode Of the G. a III. COM
pany is less rich in copper than 1t was
formerly. This lode is so thoroughly
developed with it's own workings and
the workings of Tamarack along the
G. g. III. boundary that its future can
be foretold with substantial accuracy.
The estimate that the rock will con-
tain an average of thirty. pounds of
copper to the ton, that the present
rate of production will be maintained
for fifteen years and that six or seven
years more of a lessened production
will exhaust this LODE. is substantially
correct, and much more accurate than
any estimate that can be made as to
the life OF any mine included in the
proposed consolidation except as to
the south branch Of the Osceola which
can maintain it's present rate OF pro-
duction for from four to five years.
and will he entirely exhausted after
one year more of greatly lessened pro-
duction.
"The c. & TT. management believed