The Detroit times., 1911-04-13
CALUMET & HECLA
. ROW ON IN COURT
Minority Stockholders Esk Uncle Sam
To Prevent Mammoth Consoh-
dstion Proposed

Arguments on the petition OF @. M
Hyams, OF New York, for temporary
injunction to prevent the proposed
consolidation of the Calumet & Hecla
Mining Co. and nine subsidiary com
panies, were begun before Judge
Swan, of the local United States
court, sitting In chambers, Thursday
morning. The hearing will take all
afternoon and probably will continue
into Friday. II Is of the utmost i'm
portance, for on the outcome hinges
the fate OF the proposed merger.
The proceedings are being follow
ed with interest by the officers OF the
Calumet a. Hecla. President Quincy A
Adams Is here from Boston. With him
are r. L. Agassiz. president OF the
Osceola Consolidation Mining Co.
who is son OF the late Prof. Agassiz
former president OF the Calumet q
Hecla; James McNaughton, genera
manager OF all the properties; c. II
Benedict, mill expert; Asst. Supt. Hal
Ter, OF the Osceola, and Attorney A
F. Rees, OF Houghton. Mr.. Hyams Il
present In person and is represented
by Judge r. II. Person and Judge Ed
ward Cahill, OF Lansing.
The case really belongs In the west
ern district, but Is being heard by
Judge Swan at the request of Judge
Denison, OF Grand Rapids, who is now
sitting In the local court.
Mr.. Hyams files his petition as 8
minority stockholder in the Osceols
Co., one Of those involved in the pro
posed consolidation, He alleges that
the merger, as planned, would be In
violation OF the federal antitrust law
the Michigan state law and would de
fraud the minority stockholders. While
Mr.. Hyams brings the suit as an IN
dividual, II Is understood that he rep
resents large minority interests, head
ed by an ex-president of the Osceola
The entire morning session was de
voted to a reading OF the Calumet a
Hecla's answer TO the petition by At
imposing document, which purports
to go into the full details OF the con
solidation plans to date.
IL denies that the minority stock
holders will be deprived OF any oi
their rights, and points out that, ol
the total number of shares held In the
10 companies, holders of 693,241 o
the total number Of shares In the com
panies had voted in favor of the con
solidation, while holders or only 13,
SS7 had voted against II. II is furthel
denied that the purpose OF the con
solidation Is to control the production
OF copper In the upper peninsula o
Michigan, to fix prices, prevent compe
tition and thus create a monopoly.
denies also that the plan Is In con
travention OF the state or fedora
laws, but Is, on the contrary, author
lied and permitted by the state stat
utes.
The sole purpose Of the consolida
ton, as stated In the answer, Is Il
lessen the cost OF production ant
make IL possible to utilize lowel
grade OF ore than II is now possible
to utilize, thus greatly increasing The
profits.
AS bearing on the charge that tn,
Calumet q Hecla Is attempting to es
tablish monopoly, the answer points
out that the combined production o
the 10 companies does not exceed
per cent of the worlds production
and is not more than 10 per cent o
the production of the United States.
The companies involved, aside from
the Calumet & Hecla, are the Os
ceola, Tamarack, Ahmeek, Seneca
La Sale, Allouez, Superior and Laur
ium mining companies.
! Affidavits filed by Mr. Hyams in re
ply to the answer of the Calumet 4
Hecla allege that the value of S42
100000 assigned the Calumet & Hecli
/ for the purposes of the consolidation
is excessive. He declares that Presi
! dent Agassiz and GeneralManagc
McNaughton testified, in suit trio'
in Grand Rapids, four years ago, tha
the prospective life OF the mine wa
from 10 to 10 years, whereas 1t is nov
claimed that the mine has still frou
/ 10 to 16 years of life. He charges tha
conglomerate sands that have beer
put in at $4,000,000 are PRACTICAL,
valueless
Hyams further asserts that the plaI
was kept q secret from the minority
stockholders until Jan. 2, last, wher
the 90-day notice required by the
statute was published as a matter o
form Thomas Chadbourne resigned
| from the directorate of the Ahmeel
I Co. he says, because he was not IN
formed of these proceedings, although
he had been in frequent consultation
with the men who were promoting th'
plan
The Calumet & Hecla insists tina
there was no effort or intention Il
keep the minority stockholders in the
dark.