The Cordova daily times., 1918-06-12

There have been numerous reports lately as to the status of the Mother Lode Copper Mines Company at Me Carthy and the Kennecott Copper Cor poration, and the following statement recently issued by James J. Godfrey, president of the Mother Lode com pany, to it's stockholders, will prove of interest to the readers of the Daily Times:
 Your company has been seriously handicapped in it's mining operations, due to the lack of a concentrating mill for treating it's developed ton mage of milling grade ore, which is not commercial without such a plant, and also to the lack of proper ship ping facilities in the way of a rail- road connection from Shushanna Junc- tion, on the line of the Copper River & Northwestern railway, up Mccarthy creek to the mine, a distance of four teen miles.
 The cost of concentrator of suit able capacity and railroad connec- tion would be at least one million five hundred thousand dollars. The war needs of the United States govern ment for both money and material make the financing of our property very difficult and uncertain matter, particularly as the federal govern ment, compelled by the existing ab- normal conditions, now properly exer- cises a most rigid supervision over the money market. And furthermore, even though your company should succeed in raising the above named sum of money, it is not probable that it could get deliveries on the neces- sary machinery and equipment within reasonable limits.
 In full appreciation of all the above conditions, your trustees believe that the only feasible solution is to inter- est strong financial concern in your property. With this end in view, your trustees, after long and careful con sideration and negotiation, have ar rived at an arrangement with Stephen Birch, who is president of the Ken necott Copper Corporation. This ar engagement, already ratified by your trustees, and which is subject to rati- fication by the stockholders of your company, is given in full in my letter to Stephen Birch, dated May ', 1918, as follows:
 (a) A new company, to be called Mother Lode Coalition Mines Com pany," is to be formed under the laws of the state of Delawafe, with an au- thorized issue of 2,500,000 shares of stock, having no nominal or par value. The certificate of incorporation of said company will provide for cumu- lative voting. Stock nonassessable.
 (b) Your company will convey to the new company all it's property, equipment and improvements thereon, located in the territory of Alaska, sub- ject to the existing bonded indebt- edness of $500,000, in consideration of the issue by the new company of 2,500,000 of it's shares, being the en- tire number of shares of stock, which it will be originally subscribed to issue.
 Co One million two hundred and twenty-five thousand of said shares to be issued and delivered to your con- pany, which will then distribute the same among it's stockholders in pro- portion to their respective interests, and 1,275,000 of said shares to be is sued to Stephen Birch or his nomi- nees.
 (d) Contemporaneously with the ex- ecution and delivery of the deed by your company of its property and as- sets located in the territory of Alaska, Stephen Birch is to furnish, or cause to be furnished:
 (e) The sum of $550,0OO in cash ito be forthwith applied by the new com pany to the redemption or payment of the existing bonded indebtedness of your company; the said bonds to be redeemed or paid for at 110 per cent after such payment, the mort gage securing the said bonds to be released and discharged.
 Such amount of money as may be necessary to pay all expenses of or. ganization of the new company, in. cluding the federal taxes on the issu. ance of its stock, and on the said con veyance from your company to the new company.
 Such further sum as shall, in the judgment of Stephen Birch or his nominee, be necessary to provide the