Show AMERICAN SMELTERS SCHEME How the Public Will Furnish Money For Trust Earnings The taking over by bs the A American rican Smelting 8 Refining company of the properties of tb the Guggenheim lion interest through the neI newly created Smelters Securities company is an aD inter SUng eating bit of financing says the Boston News Bureau IUs It retails details wilt will be app r out nt from a summary of tire the capital or of orthe the smelters combine and of the new Se Sc Securities company American Smelting Ref Refining Old underlying bonds 3 I 7 per Der cent cumulative preferred stock Common stock American Smelters Securities 6 per cent cumulative preferred stock series A i 5 per r cent cumulative pre preferred r err e d stock series B Total OO Common stock JOC fJ O OIn In the new common stock the voting yoting power of the Smelters Securities corn com pany will be vested for the first two I years and as a long thereafter as dividends on the preferred series B are continUed The series B issue is guaranteed at par parin parIn in ease case of liquidatIon and Its dividends are guaranteed by the American Smelting Refining company ny The series B stock is the Only one that thatis I is offered to the public an interesting fact when it is realized I that the fc t Il secured from its sale furnishes i to the I Securities company the funds with Which the Gu GuggenheIm genheim properties S are to be acquired The common stock of which the Smelting owns il ii per cent Is not offered and it is understood wil wilnot will not be offered Kei will the series A representing first control and second I Initial dIvidend ret to tc the insiders be placed on the market I The net earnings of the American Refining for the current year vear after all all deductions are estimated at I about from which must be de ducted a total of for divIdend on the common and preferred stock leaving I a balance of to meet the guaran guaranteed teed S i per cent dividend on the series ries B preferred stock The Smelters Securities is expected to have an earning o of per year net so 80 that the din divi liability of the American an Sm Smelting Refining ef g company a isS is something in remote I O On this basis the Smelters e securities I could care for the dividend on its i preferred series A and the ii 1 1 dividend on Its series 8 B which the Smelting Refining so 80 kindly I guarantees and then have something like left over for dividend pur on I Its common sto stock k or for surplus account In other words the pUblic is asked to PUt up or to 10 purchase properties expected to earn nearly lit per percent I cent on that investment and to take a needlessly gUAranteed 5 S per cent on their mone money while hUe the guarantors guarantees divide up the other 15 3 per cent as they see fit bt be tween themselves and the controlling company compan |