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Show RECEIVER NAMED I FDR MGI-U1 Action Is Friendly One, Designed De-signed to Promote Reorganization Reorgan-ization of Company. For the purpose of reorganizing and financing the Michigan-Utah Mining company a friendly suit ivas begun yesterday yes-terday based on the complaint of the United Grocery company for a sum ot money duo it for a bill of supplies. Upon tlic reouest of both complainant and defendant Norman W. ilaire, president pres-ident and managing director of the mining min-ing company, was appointed receiver. The suit wu's brought before Judge C. W. Morse of the 8eventh district court, the action being taken under a general agreement among the bondholders and larger stockholders, ft is believed most of tlio creditors will also come and assist as-sist in e.arrviug out the plans. The company has been working for some time upon plans for reorganization. reorganiza-tion. Under the proposed new arrangement arrange-ment it is planned to make the stock assessable, as the old stock was nonassessable, non-assessable, making it impossible for the company -to raise money to meet its obligations. When the company was organed several years ago, taking in some 1200 acres ot mineral laml iu the Alta district, a bond issue of $1)25100 was authorized. Of this amount it'oi'i,-000 it'oi'i,-000 worth of bonds were issued. The company was capitalized for $2,500,000, with sb'ares at $2.50 each. Stock to the extent of 52S),O00 shares were issued. is-sued. The company was started with onlv a small treasury, which was not sufficient, to properlv develop the property. prop-erty. An effort has been made to carry on "the, work in spite of treasury conditions, con-ditions, but it has been of no avail. Eastern capitalists, who are now interested in-terested in the company, have promised to assist in the financing. They have advised Judge, Haire that they want the mine reopened and given a chance to show its worth. Grant Snyder, acting act-ing for the Cliff Mining company, has a lease on some of this ground and is now shipping at the rate of a car of ore a dav. The Michigan-Utah company receives' from ifoOO to $(500 a month in royalties from this lease, but the new company will arrange to have shipping conducted on a larger scale. The Michigan-Utah is a consolidation of the Citv Rocks. Grizzly, Utah Mines Coalition and Copper Priuce properties. Tt is fairly well equipped and- there are a number of large ore bodies , known to exist in the property. The reorganization plans have not vet been fullv worked out, and it may be two or three months before this is accomplished. Tt is being undertaken for the best, interests of all concerned and Ihe new company will have ample capital to properlv prosecute tho w-ork of developing arid mining the ores known to exist in generous quantities in the company's ground. |