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Show South Columbus Company Sends M Statement in Support of g Consolidation, Ja WOULD LIFT STOCK f f1 K FROM CHEAP CLASS fl Details of Proposed Merger M Plan Is Sot Forth in - Full. , 1 The following ntatement has been for ,1 warded to tho South Columbus Consoll- j dated stockholders by Secretary Arthut Magoun, which, In view of tho opposl- ,1 lion to the merger plan mentioned, will provo of much Interest: J5 Tho matter of successfully financing vSM tho company has engaged tho serloua fjE attention of tho board of directors dur- jl lng the Inst six months, and no satis- Jm factorv conclusion has been reached un- 90 til recently, and after carefully lnvcsil- HI gating tho situation and beebming con- MM vcrsant with It, wo aro convinced that JM wero a reasonablo amount of funds .jftl available for dovelopment work, tin mm company's properties could bo converted KI Into a thorough-going mlno, and have WE tho possibilities of becqming one of tho famous properties of tho country. Tut IB; being tho caso, it has been determined jUi by tho board of directors that tho com- ,M1 pany ought to be financed In such a JH manner as will put it upon a producing .jH and concentrating basis. jffl During- tho last sixty days tho offi- til cors of this company havo brought Its affairs to a point whero the property can M bo adequately financed, assuming that B9 tho plan devised meets the co-operation El and approval of the stockholders. In or- VI der to carry out tho plan recently con- 'H celved by the hoard of directors, a num- ,H ber of things will havo to be done. Tha ml suggestion lu to: Kl First Organize a now company, with 'M on authorized capital stock of 500,000 H shares of the par value of 51 per share. ml Second TI1I3 now company to take H over all of the properties of this com- H pany, and thoso of tho Alta & Hecla ' M Mining and Milling company, whoso mm propcrtios are contiguous to those of this &9 company, and aa noarly as can be dc- rMm termlned are of equal value. H Third Each of tho companion whosa 9 properties aro thus turned ovr, namely. In this company and tho Alta S Hocla. com- ;M pany, to receive 100.000 shares each of K tho capital stock of the new corpora- El tlon, or a total of 200,000 shares, leav- H lng In the treasury of the new company '.IN 300,000 shares, which amount will then mm be sold at tho highest possible prlco and M tho moneys derived therefrom used in H tho dovelopment of the properties thus ;M acquired. B Fourth By the new plan It Is pionosed fif that tho shareholders of this company, ,Wm after the transfer Is consummated, ex- H change their holdings at the rate of flvo ;SI shares of this, company for one share of WM tho new company. By this means tho 100,000 shares of tho new company wilL fl be distributed proportionately among all lm the stockholders of U1I3 company. mB The most Important result of this co- j' jJK operation, from a financial point of vlow, "Tp at any rate, will he that tho number of 11? slvires outstanding and hawked on tho " wA market at a very low figure will be con- M vorted into a stock that will bo com- IB pletely lifted out of tho cheap class, and MR the new company will havo practically III double tho amount of acreage of this 'mm company, and all or It of equal value, as M near as can bo determined, with tho il property which the company now has. The plan has come as a conclusion to '19 very diligent study and Investigation of the problems confronting th at this moment, and is regarded bv tho- -'SB directors as tho wisest course for tha SK company to pursue to realize upon Its 1 assets and convort stock which pays no tmm dividends, into a stock that will, we imt think, very shortly net a profit to Its iWm holders. We feel quite sure that the 'H stock of the now company which you will mm got under tho above arrangement will ''H have a higher cash value by far than tha mm stock which you now hold, assuming that lH tho plan proposed and above set forth Mm meets with your approval. H Therefore we, the directors, submit ',jH this matter to you for your careful con- H slderation, and trust that It will recelvo c Kl your hearty approval. We are enclosing M herewith notice of meeting to be held ' llf together with a blank form of proxv' t M which you will kindly use If you are not i N able to be present at tho timo Indicated : H In tho accompanying notice. Kindly 1 1 strike out the namo of the person whom 1 mm you do not want to act for you, and In ill caso neither Is satisfactory, scratch U both and substituto the namo of tho H person who will bo present and who is Hi satlsfactorv. |