New-York tribune., 1913-10-21
MINING ROW ON
Minority Stockholders Question
Chairman of Board.
ATTACK COMPANY METHODS
Assert Contract of the Ameri-
can Smelling Costs 100000
a Year and Bars Dividends.

Sidney Norman. Of No. 20 Broad street
and A. NJ STROBE. Of Mullin. Idaho, on
behalf Of the minority stockholders or the
Federal Mining and Smelling Company.
et the annual meeting yesterday at No.
70 Broadway. submitted questions %
Francis II. Brownell, chairman of the
board. I'm an effort to show that the COM
pany is being managed in the interest
OF the Guggenheims. and not for the
benefit Of all the stockholders.
Mr.. Strobe endeavored to bring out in
the questions that the company is in
control of the United Stores Company.
which sells foodstuffs and merchandise
20 the miners, and that this corporation
sells its products above normal market
prices. He alleged that if the miners did
not buy their necessities from the United
stores Company they soon lost their po-
sitions.
Mr.. Brownell. however, replied that 70
his knowledge, no member OF the F'ederai
Mining Company's official staff had even
one dollar invested i'm the United stores
Company. and should Mr. Strode be abe
to show proof that any employe was
coerced into buying from the store inc
matter would Immediately be investigated
by him.
Another matter brought up by MI
Strcde and Mr.. Norman was the riS"'
of the company's employees IN accldeh'e
Mr.. Brownell denied that the Fedefa
companv forbade employment to minors
who refused to sign agreements rei'h-
gushing their right TO sue Tor proper
damages I'm event Of accident The com
nanv's chairman explained that the on'y
case in which the employe could not re-
cover from the company was where he
had ioined a local insurance conpdhS'
which automatically released the Federai
conpany from further liability.
At this juncture a stockholder said that
the discussion of local matters was not
germane TO the real needs Of the stock
holders. and that the prospects Tor re-
ceiving dividends on the common STOCK
should be divulged. Mr.. Norman then eX-
nlained that the chief reason for non
pavment of dividends for several years
was because of contract entered into Dy
the Federal Mining Company with the
American Smelling and Refining Com
pany. controlled by the Guggenhelms'
which. he asserted, lost the Federal COM
panys stockholders SootW IN yearly
profits.
II is for the abrogation Of this contract
that he has been contending since last
winter The matter is pending before the
Supreme Court of New York and is 10
come up for trial in few weeks MT
Brownen refused to go into the merits
of the case, on the ground that this was
a matter before the court. He did ask
Mr.. Norman, however. what was his real
motive in seeking the abrogation OF the
contract. in view of the fact that he Is
n stockholder of comparatively short
standing.
81 am not a small stockhOlder of the
Federal Mining and Smelling Company
as intimated by Mr. Brownel, replied
Mr.. Norman. 'I hold twice as much
stock as any OF the directors. Further
more / represent one hundred other
stockholders, who cannot understand why
the directors doubt my motives in trying
10 save the company and its stockholders
$4,000 a year. Another thing l would
like to add is that my dividend checks
are not made payable to the American
Smelters Securities Company, as is the
case with the directors"
In response to repeated inquiries as TO
the future OF the Federal company's
properties Mr. Brownell said that would
depend largely on the addition Of new
mines, which might or might not prove
profitable No dividend has been paid on
the company's common stock since 1908
while the preferred, which is normally a
Z per cent stock was placed on a 6 per
cent basis in 1912.
The company's statement OF earnings
for the fiscal year ended August 81 last
showed a total income OF s1.l26974 and a
net balance of income amounting to
ss83. AS. an increase of s36.lA over the
previous year The stockholders voted to
amend the bylaws to provide that here
after the company's annual meeting
shall be held the second Monday of
April. instead OF the second Monday in
october. and that the fiscal year shall
end with the calendar year
All the directors were reelected, with
the exception OF Eugene Barney, who was
succeeded by w ]. Hall. Out OF the 1852
shares voted at the meeting 1882 shares
were voted by the American Smelters
Securities Company, which is controlled