Show THE BINGHAM ELY COMBINE in speaking of the proposed consolidation or merger of the utah copper and boston consolidated of bingham utah and the nevada consolidated of ely nevada the denver daily mining record says it seems a little remarkable that a transaction so large as the merger of the utah copper boston consolidated and nevada consolidated companies potentially capable of producing pounds of copper per annum and representing a value of at the present time should attract so little attention from the general press of the country even the larger merger of copper producers which has been discussed of late with no definite outcome as yet has not received much notice from the general dailies notwithstanding it promises to become one of the three largest corporations po in the world the bingham ely merger is virtually an ail accomplished fact for it has received con formation fir mation from official sources the basis of the union has even been intimated and the figures are well worth noting taking utah copper as the ground upon which the reorganized concern will be built it will be recalled that its capital is shares partly held for the conversion of bonds the boston Consolidate ds capital liabilities are approximately represented by its shares therefore the merger of these two on a basis of two and a half shares of boston for one of utah gives an insight into nihat at is considered the relative worth of these two bingham enterprises to begin with boston consolidated is not so fully equipped as its neighbor and is perhaps not lot so well situated financially it would require an expenditure of several millions perhaps to bring it up to the stage of pro ductility possessed by the other moreover its ore resources will probably not prove to be more than one half as great as those of the utah copper company although they are of similar character and merge into each other the real basis of exchange evidently rests upon the question of ore resources which is the main thing in any mining enterprise the speculators are not so certain of the basis of union between the nevada consolidated soli dated of ely and the bingham enterprises nevada consolidated has an authorized zed issue of shares which will provide for the absorption of cumberland ely already effected and the conversion of bonds practically all of this stock will be outstanding if not now therefore on a share basis the nevada consolidated stands in a relationship to utah copper of about eight to three so that if they were to join on an equality two and two thirds shares of nevada consolidated would be turned in for one share of utah copper it would appear however that they are talking of two or two and a half for one which seems to indicate an intention to regard nevada consolidated soli dated as the superior on a basis of ore resources this is not true but the costs of producing copper appear to be materially lower at the ely mine made possible to some extent by the offsets which the company receives from its railroad operations moreover this company is the owner of the smelter which chieft treats its ores and its transportation por tation costs are low the grade of its ore also averages higher there is no economic advantage in the union of the ely and bingham enterprises unless it be in the consolidation of control of the output in the case of boston consolidated soli dated and utah copper together there is however a decided cause for the union they are naturally one property and the separate operation of them is an economic waste both will undoubtedly be more valuable under one ownership |