The Calumet news., 1911-02-21
Reply to Mr.. chadb0urno.


ton"
Reply to MIR. chadbourne.
In replying to Thomas L. Chad
bourne, tho circular says;
1T ls true that Mr.. Chadbourne is
a large stoclsholder OF Ahmeek and
has been for many years. and that he
has holdings in certain other compan-
les 1t is also true that Mr. Chad
bourne has long been a resident Of
Houghton and for many years was
counsel for the G. & n. Co. He has
also been keenly interested in and
very encouraging about Ahmeek for
years and has followed its career as
carefully as any one not actively en-
Gagged i'm the management. Your di-
rcctors do not feel that such knowl-
edge Is, however, sufficiently complete
to justify him in inumating, as he
does. that Ahmeek is unfairly treated
i'm the proposed consolidation. Ahmeek
Is a good mine. That is the reason it
was given a high value In the allot-
ment Of new stock. Mr.. Chadbourne
however, is incorrect in certain con-
clusions he reaches. The production
for the sixteen months ending Sept
last. could not have been increased
considerably if the price of copper had
been higher because the limiting fac
tor was not the price Of the copper
but the capacity of Ahmeek's equip
ment.
'Mr. Chadbourne's conclusion that
an annual production Of 20,00O,000 lbs.
OF refined copper can be made, loses
sight of a number Of factors in the
first place, he assumes that the ground
tributary to the Nos. 3 and shafts
will prove equal to that hitherto min
cd. To make any such assumption IS
10 disregard the fact that Nos. and
4 shafts are located directly under
Mohawk, which only averages about
thirteen pounds of copper To the ton.
Ia the second place Nos. and shafts
will only begin to obtain their full
production in about FIVE years. In the
third place at a slightly increased
rate of production. the ground trib-
utary To No. l shaft will be ehausted
in about thirteen years, so that for on
" eight years (assuming reasonably
full production) will Ahmeck ihave
four shafts in operation"
The circular shows the immediate
necessity of securing an adequate wa
ter supply for Ahmeek. 1t also shows
that to double the production, of the
mine would require an expenditure in
the ncighborhood OF 100000. IL says
the balance of a. Its mentioned by
Mr.. Chadbourne is wholly inadequate
as surplus on which To safely con-
duct present operations, and Ahmeek
IS now borrowing money. II is evil
dent that large sums must be set aside
In the accumulation of a proper sur
plus.
'tM'. ChaGbournes statement as 10
the mining of the pillars and arches
I'm the conglomerate lode is Incorrect
This work is no longer puzzling
mining undertaking. The pillars and
arches have been for eight years and
are now being recovered with safety
and profit. as has been stated I'm the
.C. & II. reports and i'm letter TO Mr..
Chadbournc last December. Mr.. Chad
bourne dismisses as of no value the
Ooceola amygdaloid lode and the
stamp sands of the c. & II. from
both Of which sources "A substantial
income will be received Mr. Chad
bourne's remarks about Mr.. J. Parke
Claiming seem to your directors both
unfair and unwarranted. He was cm-
ployed and paid by all the companies
ard was asked Go make an important
investigation and report
Your directors again wish 90 adj
wise stockholders that they are anx-
ious 10 give the fullest information
that can he OF service in forming a
correct and fair Judgment OF the
terms Of the plan of consolidation.
They repeat they believe the prof
its to each stockholder will be in
creased. Your directors desire as
full an expression from stockholders
as possible. and stockholders who are
In favor of adopting the plan are re-