The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-06-08
MAJORITY AND MINORITY
ON A. S. ar. CO.
MANAGEMENT CRITICISED AND
coMMENDED-RooT SAYS
FINDINGS UNJUST.

The following extracts and summary
of the report of the Evans committee
on the affairs of the American Smelt-
ing & Refining company are taker
from the Engineering and Mining
Journal Press
While cOnceding that the business
management of the American Smelling
& Refining company has been success
full and that a highly efficient organi-
cation for the conduct of its business
has been built up. the majority report
of the Evans committee of stockhold
ers nevertheless sets forth certain
transactions wherein the officers and
directors of the company are. in the
committees opinion. subject to criti-
cism in their dealings with other cor
porations in which also they were in
terested. It also condemns the policy
OF paying large dividends during the
years of very profitable business with
out making sufficient additions to cap
ita PRESERVES"
The report is signed by Henry
Evans, Clarence II. Kelsey, Henry X.
Pomeroy, and Willis D. Wood, four of
the committees seven members. The
three members dissenting are E. c.
Jameson. Lyman Candee. and Wilfred
Shore, who were elected directors at
the last annual meeting on April G.
1921. A minority report defending the
management of the company is signed
by them. They had been added to the
membership of the committee at the
cOmpany's request and as its represen-
tatives.
The Evans committee was organized
on March "a. 1921, to investigate the
management and affairs of the COM
pany, as a result of the charges of mis-
made by Karl Eilers dur
ing his campaign to Gust the Guggen-
helms from control AS then agreed.
the committee was to conduct the in
vestigation through it's own agents and
report it's own conclusions, but the re-
FORT, before distribution to stockhOld
ers, was to be submitted to the COM
pany to be examined by William H.
Taft, on behalf of the company, if the
latter wished. Later 1t was understood
that Elihu Root would act in place of
Mr.. Taft George w. Wickersham act
ed as counsel TO the committee and
in the findings of the ma
iority
At the time of the merger of NJ Gug-
genheim's Sons with the American
Smelling & Refining Co. states the
report the latter company
acquired from the Guggenheims prop
critics worth s14.71S,OOO, giving in ex-
change for stock having a value of
s34 sO4, 900 and which was later dis
posed of for $97.411,72O. Regarding
this transaction, the report says:
1.-THE statement made by S. r. Gug
genheim to the stockholders in 1921.
that at the time of the merger the
of NJ Guggenheim's Sons was
over 100000 year, appears,
from all the facts ascertained in con-
nection with this investigation, to be
very greatly exaggerated"
Ten pages of the report are devoted
TO a discussion of the cOmpany's rela-
tons with the Federal Mining &
Smelling company The fall of the |
Federal company from its position in |
1907, when it's common stock paid Is |
per cent and sold at 1896. to that at the |
present, when it's deficit is placed at
80, 900, 900 by the committee. is shown /
In connection with the transactions
With other companies which the COM
nittee considers subject to criticism,
particular reference is made to the or
yanization and issuance of various
stocks by the American Shelters Sc
,urities Co, guarantees of such stocks
md purchases by the Smelling COM
1any, and the sale by the Guggen-
ieim Exploration Co. to the smelling
in 1911 of substantially half
# the common stock of the Securities
company Reference is also specifical-
y made to the transfer to Guggenheim
Brothers in 1921 of the copper selling
,gency which the Smelling company
lad conducted for ten years.
Election of a board of directors of
whom a majority would be independ-
mt of the present management has
,een advocated by the majority men,
,ers of the committee in a statement
o stockholders.
A call for proxies has likewise been
ent out by the management.
Root Comments on Majority Report.
Elihu Root, who examined the ma
GRITTY report for the company in place
Il Mr.. Taft. cites the dividend record,
moving that the stockholders in 20
ears have had returned to them the
ntire cash investment. plus per cent
,er annum. plus S2S,OOO,OOO in excess
# the entire cash investment and an