The Calumet news., 1911-02-28
R. |. ACASSIz
MAKES A REPLY
PRESIDENT OF osc cola AN
sWERs TUCKER, HAYES &
co.'s RcULAR TO
STOCKHOLDERS
(Courtesy Of Cay & sturgis and
Paine. Webber & Coz

ers
Tucker, Hayes & Co, bankers, OF
Boston, have, under date OF February
"a, 1911, sent out a circular opposing
the merger. With this circular they
have sent a request for proxies for the
annual meeting, with the intent to
change the management
The fact that Mr.. Tucker was a
member OF the committee appointed by
members Of the Boston stock ex-
change, to consider the terms offered
by the G. & II. to stockholders Of the
other companies. and to report at a
subsequent meeting whether or not
those terms appeared to be equitable,
and II not what further action should
be taken for the best interests of our
clients who are interested in these
companies, gives this circular suffi-
cient Importance To make il seem wise
for your directors to answer certain
points raised: The stock exchange
committee, after four weeks OF contin-
uous study. made unanimous report
which contained the following find
! ing:-'We believe under present condi-
tions that the intrinsic worth of the
combined companies will be greater
than the intrinsic worth of the sew
eral companies. We believe that the
directors of various companies have
made an exceedingly thorough and
honest effort to find just basis of
consolidation: that the principles of
arriving at these valuations are cor
rect: and that, whereas many of the
factors cannot be exactly determined,
we believe on the whole that the val
uations reported are equitable and that
each and every detail has been given
due consideration, II is self evident
that any plan for consolidation OF
these companies at any time would
present the same questions as may
arise in our minds at this time, deal
ing. as we necessarily must, with so
many unknown factors; in conclusion.
your committee have come to the un-
animous opinion that the plan is con-
ceived with absolute intent towards
fairness. and is as fair plan as 1t it
believed can be produced under exist
ing conditions.
80 much for the fairness of the
plan. AS TO the advisability, your di-
rectors submit the following facts. This
question has been studied for about
eight months by men whose surround
ings, training and experience have
made them thoroughly familiar with
mining in the Lake Superior district,
and who have had the responsibility
of managing all these properties for
the past two years. These men have
concluded that such great savings can
be made by the consolidation that the
values of the properties will be greatly
increased.
your directors regret that the stat
utes Of Michigan prohibit a greater
number shares than 100000, but they
do not think that the scheme of a hold
ing company to increase the number of
shares beyond the number allowed by
the law is wise, nor do they believe 1t
would be acceptable to a majority of
stockholders. The arrangement with
the stockholders to participate in the
fortunes of the consolidated company
at little and in many cases at no out
lay for purchase of rights.
"The statement of losses and gains
TO the Osceola Co in Messrs Tucker,
Hayes and Co.'S circular will bear ex-
animation.
''Losses-A-It's individual exist
ence.'
The weight of this objection is not
clear. II this objection is one of SEN
timent. the material advantages should
be weighed against it.
"B-s1. 500. 900 surplus Osceola was
given full credit for this surplus in ar
irving at the values of the property.
"'C-About 25 per cent of it's earn
ings for a series of six to ten years
Your directors have no information
justifying any such conclusion as this,
nor do they know on what Messrs
Tucker. Hayes & Co. base their con-
clusion. Your directors believe that
Osceola will receive less income for a
time (possibly five years) and more in
come after that time. The amount Of
such decrease, as well as the amount Of
such increase. will depend among other
things upon the amount of economies,
price of copper and the development
OF Osceola ground as compared with
the development of the ground Of the
consolidated company.
"D-The full measure of its future
prospects equal TO the best of the
eleven companies. and becomes liable
for one-seventh proportion of $780,
900 c. & II. notes. or.such part of them
as cannot be liquidated by sale OF cer-
tain assets of the c. & H
"Your directors have already set be-
fore you what they believe osceola's
prospects are. The notes of the c. &
III. were charged against that company
In determining its valuation. The COM
mlttee. of which Mr.. Tucker was a
member said we believe on a whole the
valuations reached are equitable. and
Continued on page four.