The Alaska daily empire., 1917-02-01
Consolidation of Utah Copper and KenneCOtt Is Being Held in
 AbeyanCe.
OPPOSITION TO MERGER
Object to Scheme Which Links Fortunes With
 Others.

Concerning the reported merger of
 he Utah Copper and the Kenunecott ahich occupied much space and com ment last month. and excited Alas. Ians considerably, the Boston News Bureau. of recent date says:
 Since the recent stock market col
 apse nothing has been heard con. ,erning the Kenneco;t and Utah Cop 1er merger. The basis agreed upon vas 2.2 shares of Kennecott for one Df Utah Copper We understand III the differences which arose as 70 the executive management Of the consolidated company were ironed put some weeks ago.
 While the Morgan and Guggcnheim
 interests. who dominate the Kenne ,ott Copper corporation, were favor lble to the merger on 2.2 shares.for-
 basis and might be able to secure sufficient proxies 70 put the merger
 trough, it cannot be denied that opposition to any such plan has de. ,eloped among some Utah Copper
 hareholders. These shareholders believe that they are part owners 2 the worlds greatest copper mine nd do not take kindly to the pro. 1osed scheme which links up it's for unes with those Of any other min. ng undertaking,
 As Kennecott owns in it's treasury lO4.O0O shares Of Utah Copper, and IS the Guggenheims individually are believed to represent Q totGl of at least 100000 more shares there i8 .n the combined total a formidable aggregate of 6OO,OOO shares. or all. most 70 per cent of the Utah Cop per Company's 1,6OO,OOO shares.
 The Guggenheim5 are believed to nave been buyers of Utah Copper turing the past two or three weeks, md we have heard that they have .aken over some very large invest. ment blocks privately. Whether this s being done to facilitate the mer- ger is not apparent al the moment.
 The Utah Copper Company in 1916 produced 19O,O0O,OOO pounds Of cop per. We figure that on this output he company must have cleared up 10 less than $33,O0O,OOO Including 'ts 5l per cent equity in the Nevada Consolidated. the Utah Coppers prof. 'ts easily totnlled $4OOOO,OOO, or S25 per share.
 A prominent director states that 5ince the adverse decision Of the Supreme Court in the Minerals Sep lratioa litigation whereby the cop per companies which have not taken put licenses gre prohibited from us- ng less than one per cent of oil in he Notation process, the Utah Cop per has been making some extra ordinary recOveries in the use of fraction of over one per cent. oil. Anything over one per cent does lot fall within the prohibitions of he patent. The director in question !ssertg that the recoveries are just
 high as when very small per entage of oil was used and that by heapcning the grade the increased quantity Of oil does not materially aifect the cost.
 No Change For Months
 The Boston News Bureau of Jan. 5, received in Juneau. further says, ,egarding the merger, as follows:
 We wired Managing Director D. '. Jackling, of the Alaska Gold Mines Co.,, who is now in San Fran. ,lsco. asking if he had any advices rom the property that would eX, plain the recent decline in the stock 70 $S.25 per share.
 Mir. Jackling's wired in answer as follows:
 "I have received no adyices from Alaska that would account for the recent decline and believe. therefore, hat there is nothing in conditions 1t the property to warrant it, The outlook. so far as I am able to in- ;erpret it. justifies the belief that tonnage can be maintained at not 'ess than the average for the last three months, barring interference 2f severe weather; and the proba- 5ilities are that the output may gradually, but slowly, be increased as weather conditions improve to-. ward spring. do not expect that the average values of the past year can be improved much, if any for ,,.,-,,.,1 y,,optbg