Show 11 V WOULD I PREVENT DEAL fOR NEVADA CON CONI I ietter to Con f el I Lion Utah i Stockholders or NovalIa Copper company are arc the or of ori a over ocr i James Phillips Jr or of the tho company compan protesting n a consol illation wIth the Utah Copper com company pan under nn any terms The offer or of con ho said was made only S st few tew day after a meeting at whIch the tho 1 I of the tho board not Interested In n I Utah cOPIer mado aiato a protest a 0 merger merlC ant were werl b tho that no steps step be taken towards toward It until the thc Guggenheim figures had first been verified by metallurgical experts expert and the thc accounts or of the Utah Copper I com company pan submitted to the Mr Phillips Phillip says SUS that there arc oro arcI I In the Ho He i i declares that ho It his duty I t to Inform the ers or of aU all the tho I condition or of the companIes He says In view or of the tho fact that three or of orthe the Nevada board arc also members member ot of he Utah board and would be de debarred II barred by custom and equity from vot I j i Ing upon the tho proposed merger tho thoI I responsibilIty for or protecting the out Interests In Nevada Novalia Consolidated fell upon 1 W Smith C Hart HartI Hartman taco man Kuhn ot of PhIladelphia and myself I This tact also ahlO demonstrates the tho noc necessity for tor Il a thorough examInatIon ot of tho properties b by a board or of Independent Independent dent engineers rs should any further plans for an of corn com ponies panics be forced upon u us The Tho Nay Nev Nevada ada company should welcome this cc ac acI tIon as It has Ittis nothing to fear or con conceal I coal ceal from nn any form or of physical or financial examination however rigid nf WA WANTED TED I INFORMATION FORMATION I I At t the tho mentioned It Is do that tho followIng Information was InsIsted upon ullon The Tho proven ton jl I I If ii I Hugo and actual percentage and e eI ox I traction of Utah ores the tho compan B JI financial condItion Including details or of so o called deferred charges advances on metals borrowed money etc net earnings since actual operations began I I Ii together with the facts as to having 1 I 1 11 I I earned the already paid and andI I I the tho to continuo continue divIdends I i t after consolidation In view or of tho t 1 mer merger lr with Boston Consolidated and the increase 10 In atlon al all fats facts I 1 j I In a Inc line ot of Investigation re regarding f garding the Boston Consolidated for tor torII II ti 11 II what the OOOO shares re 1 lA In the treasur treasury ot of the tho Utah I Il I Copper company were to be used P I In speaking of the affairs ot of the tho Uth Utah Copper company und and the meet II I III I 1 l Ia says Ins ing Mr grows sarcastic and andI i o urge urged that that the tue Utah company compan 1 l shoUld pa pay for Cor Its own ow necessities that H I the Nevada Novada company compan should not be beI I caled to pay more than tho ral ralI real realI I k f value alue or of nos Boston ton which I the tho Utah company wa was forced to buy I owing to the physical conditions at tho th thI I I I I 1 Utah mine i i As s to the data that had been I j I I 4 presented regarding UIO quantity ot of ore J i rl Ind and the extraction tho ho chIef engineer I of oC GuggenheIm refused to cor cel celI r fl I l tf to the tue correctness or of th estimates I I f I ns assays s until lie he hO had a weeks timo timoor If I r f or more inure to check up such aaa assay maps t n a we he d and statistics Involved t An assurance was mt at once given Gen that j II time would bo be for tor t examination and certification J f before l I 11 any further action would be taken I It ItI I I I I was vas liso also agreed that auditors should I lilly duly SO co over al cli tho acts and figures k submitted by the chief ehler engineer up to toI I thia time and for the future and also ri 11 I report ful on en the fInancial conditions tj 1 I ot of both the tho Utah and the tho Boston Doston Con i companies i Attention was drawn to the tho absurd 1 I cam claim tha that Utah and Boston Doston I Jt Consol I dated could pay their pro POI tolate I j share sharo of future dividends and we do de t 1 that proof o of their to do doso i so shou should be submitted to the board j J tO fOi examination In connection with J 9 j J I 1 this I It Is extremely interesting to wih noto f that the tho he head c s ii r r I stated at this time that It wi take tako i from Crom two and a half bait to three years ears to r put the Utah com company pan n a position ti L to increase Its production Nevada Neada to day is is hi paying divIdends at the rate of I and Utah at the rate rato of oC I I per annum GUGGENHEIM PROMISE 1111 I I W I I Guggenheim declared dot deC f ana an that unless II these statements as to dividend earn earnI ii r lags could bo be substantiated the deal I I 1 would Cal fail through and no further at 4 I tempt would be made mado to combine the I Nevada with the Bingham properties C K i Without the ot of one of oC these I 1 promises the Utah offer was forced f through the tho Utah board on the tho follow J jt II Ing Friday on tue tho terms term presented Colow Nor t I has your our president hall had an any proof poor that thac an ot of there promises made at al the I it 1 I locating have been kept mao te If y J Even against the tho conviction and If I I wish or of some members of the Utah i J boar board titis trado Was made on figures III I f practically handed In b by the tho Utah peo If t pie and on thIs date the rn was through notwithstanding N i I time the chief engineer himself could not notI I f EL certify lf as to correctness etnes of the Ir Utah or ores and d 5 lIP tg i The letter contends that an efort effort 1 Is being made to compel the tho stock l holders to barter bartel aa away the most stoc sue suc III I 11 Fi I I porphyry 0 r mine In the country II ono one or of the tho largest smelters In the tho i I world and a railroad which alone Is 1 i conservatively valued today at 10 0 r to for Cor a small J i 11 1 minority In a mining property that neither ot of thoe these advantages I 4 and to reach n a upon the 1 I F l I unverified figures or of the engineers based the I upon unchecked I J p chart charts of the tho Utah company all corn com al t U to force me to draw a compari son between the two companies lIr Mr Phillips declares that an Invest gation by competent engineers familiar with porphyry minIng has brought out the following tact facts FROM ENGI ERS 1 1 The contour or of the ground at t Binsham Is not adapted to steam shovel work worl while at EI Ely It Is Is 2 Tile The capping to bo be moved at Bingham 1 Is nearl nearly the tho thick thickness nels ness to be removed at Ely and ot at a much greater cost coat coatI I 3 To Utah company Is obliged to o surface rights from outsider er era for Cor dump room while at Ely there thero Is abundance ot of room for tor dumping waste 4 Tim Tho cost ot of transporting oro at SIngham Ingham Is much higher than at atEI EI Rb Nevada Consolidated owning to toIs Is its own on railroad 5 The steam shovel ore oro at flIng Bing Bingham ham Is limited und and with without without out combination wih with other othor proper properties ties G 6 Underground costs at vOi vel high A large expendi turo ot of mone money I is necessary to enable tho company compan to reduce these costs 1 7 Time The percentage or of copper In the tho theore ore oro at is 18 much lower nt at EI Ely and the extraction of the tho cop copper per is 15 more difficult the not next extrac I ton tion pOI per ton ot at EI Ely wl will bo 60 00 per cOnt greater than at the Utah mIne 8 A greater amount or of ground has ha been prospected at practical practically at I ly their hlo Ely only a smal small area has thus far Car Carr heath Nevada Consolidated I ted r f Cao has times I t the Utah 1 acreage 9 Tho Utah mi I is In poor condi ton requires an army or of men to operate I it and In the ne r future largo expenditures for Cor railroad and mi mill I equipment I 10 The Utah Copper company Is obliged ed to pump al all the tho water timed lu iii the mi at Garfield and suffers from a scarcity or of wate water at their Cop Copperton pOlon mi 1 11 The railways and ml mill are now crowded to tho limit and an any In Increase crease In production means either sInking a shaf shaft with at least nn an tunnel or an agreement to use 1150 a tunnel or of another mine extend log the same from Crom the present face of the workings approxImately feet and tapping ground about 70 feet Cent below the present thereby necessitating driving an up upraise upraise raise after the tunnel 1 is extended 12 copper I is It 10 cont cont per pound Nevada cds 6 cents both IncludIng over overburden overburden burden char charges es 13 present drainage tun tunnel aol nel Is le less than feet teet belo below steam shovel ground and there If W i bl tow flow of oC water underground Prosecution of work feet teet below excavation means either pumping plant or new drainage tunneL 1 14 A lawsuit II is no noy pending the company involving hev heavy OR a result ot of caving 16 15 Utah ha has no a concentrating plant The Nevada Consolidated owns Ole one ot of the largest smelters In iii the tho world CUMBERLAND ELY You Toil are aro familiar wih with the condi conditions tons at Nevada Consolidated as Ihen given In the annual report issued on Nov 1 Since that report however wo we have havo taken over about 97 Jer per percent cent of the tho company and thIs mIne ownership means a reduction In cost costs as well a as Increased production when the two furnaces now are aro completed In February or of this year We thus secured a most valuable equIty In a com complete pIe Ie and smelter with ni all their earnings ns and an absolutely hand handIn In our district district When our maxImum production i 1 reached wo we now kno know wih certainty that the tho cost or of our copper including charges for tor stripping the overburden allowances for Cor do de predation on railway and smelter wi will not exceed 6 51 cents per pcr pound Nevada Consolidated and Cumberland EI Ely ores blocked out are estimated at at the latter ore oro runnIng at 3 13 per cent During time the PMt past year ea the ore worked averaged per pel cent cent copper In additon addition to this It ItIs itis Is contended that tIme tho Nevada Nela dated ha has a low Ade grade ore oro reserve or of 1800 tons of per cent copper During the past year It Is contended tons or of ore oro were opened up and that nothing but negligence wi pro vent the tho management from opening up tons maIo more In tho next five years ea ThIs would give tons or of low grade de averaging 1 to 1 per percent percent cent copper NEVADA EAR EARNINGS I GS Nevada Consolidated therefore un for dor tul full or of Its present plesent plant plant cn can ship pounds or of copper dur durIng during Ing 1910 1010 At a cost ot of 6 cents and on onn ona n a basis or of 13 cents per pound or of cop copper per imar sold our profits would amount to On a basis or of 14 14 cents the tho profits would b be or at 16 cents the returns would be An additional unit to the tho smelter would add at least 20 pel per cent to the these e figures We e are alo paying out toda today on a basl buMs or of 10 per share I It can eaSily b calculated that hat b by Jul July 1910 thit dIvidend can b be increased to 2 per e or I It I is entirely rca rea to expect that b by January Januar 1011 we ve cun pa pay share or 01 with stron strong possibilities or of 3 during that year or oven even 4 In the years eus to follow On the tho present basis of per shame a 0 year on Nevada Consol dated It would to pay paya 1 a dividend on 1000 shares or of Uth Utah which would be out outstanding standing Ir if the merger was effected On a basis ot of 2 per share b by Nevada evaa It would take and on a divIdend of only 3 1 a sharo haie by Nevada I would b be necessary It Utah paid Its pro proPortion porton Portion Mr further contents contends that there thero 1 is no record of estimates lade made as ast asti t ti time the Utah Copper ore reserves by an engineer who Is not In lome some wa way COl con wIth the property and that ono one able ablo engineer has figured out a cO cost t on tIme the lo ores or of over oer 10 cents a pound Their own figures also show a cost o of SG 81 cents which does docs not In cude elude their overburden c charges car carried ned ried as a credIt on their books and ap preaching or practically 11 cent Cents per pound of copper produced produced ThIs lum ain would mean D a total COlt cost of 10 cents per pound The Tho Utah ore for the year car 1009 had I a copper tenor of about 16 per cent cent the th month or of Octo bar ber running 1 which means I a Oto er cry or of less than 19 pouts per ton with m ito November and December probably not exceeding elling this average In time the saie same manner Mr Ir Phillips at tempts to prove that Is al nil that the tho com company pan can em earn The Tho ro cc suit of the accountants examination shows not net ca caSh h over and nb above vp stripping charges t for r the years cars and 8 ot o and d that tw timi deferred or overburdened must now amount to about about or of which lisa ben bean ore cre during 1000 Mr also attacks the UIO Bs lIes lIesten ton ten Consolidated property declaring It has but tons ot of rather low grado ore oro He ends up by declarIng that at present thero Is no good reon why the Nevada should b be merged wih with the tho Utah Copper WEAK n Selling I l Slow on Local Mining Stock Seln Selling on the tho local exchange slow alln again thIs morning and stocks s were low and unsteady Fr For several d days s Grand Central has Jumped up and down at time the pleasure of certaIn Insiders Today Toda tIme the stock sold at al 21 and 20 For the first time In several days das 50 shares or of Carisa sold at 60 50 cent cents Columbus Consolidated was stronger thIs morning I It is 10 declared by those on the Inside that the stock ha has reached low level leol for 1 a while The Tho company Is now shipping In time the neighborhood ot of 10 1000 worth or of ore a da day and con are declared to be most favor favorable able at the mine The stock sold this mornIng at 10 and 12 One hun hundred I dred shares or of Lite Little Dol went neat at 1 Central was the tho feature of oC the tho market agaIn toda today and It was dis disposed posed ot of to the tho extent or of 1000 hares at 9 Cont Another lot of oC 2000 shar shares Wl was disposed ot of nt at 9 cents seler seller 0 60 days dars Seven Soven Troughs was knockel d down wn from 10 cents to 9 cents today and shares were sold on the reg regular ular ulal board The total amount that changed for Cor stocks thIs timis was sas slightly over On the tho curb market OO shares share or of sold at Gl 61 cents McDonald Ely continued strong anil the tho following sales wore welo made Four our hundred shares ot at 46 G cents shares at 45 cents 0 shares shareR at 47 cents Fed Federal oral eral EI Ely brought 16 cents tOI for 1000 shares and Hi 15 cents was paid for 1000 shares share or of Kin King QUOTATIONS S SI Forenoon Sties I Bd Bid Asked Bid Asked Ajax a 32 Beck Tun le 10 15 BIS Big Hi Hill 01 01 i BIng Amal 11 1 Black Jak Jack 10 1 11 10 1 11 OH 01 Cap Camp Bird 00 01 00 01 Carl Caries s 5 J lO Cedar Cedat 03 Ot 03 on Cent m O I Century OS 08 10 I Colorado 74 75 71 76 Columbus 1124 C Mercur 15 15 Crown Pt 06 07 OG 06 Oi 07 Daly Judg Judge 00 E Crt 00 01 0 01 E T I Con 01 02 0 OI 02 E P De 06 OW 07 H B T G C I 00 Ely Cal 2 Grand Con Cen 2120 12 15 03 J Ibex 03 03 md Ind Queen Ol 01 02 01 02 Inyo Ino I P O 0 D 1025 06 10 OG OGI 1024 I Blossom 7 74 I K Con 12 12 Joe Bowers Boners Ol 03 01 2 2 I King 13 01 23 1 Vil Little Chief 1601 1 GO Ir Hi Hill HillIa 45 45 1 Ia Maims 50 5 52 50 52 Majestic 90 00 0 Maj Evans OO OOIn In Iason Val 22 2 May IaDa Day 18 21 1 18 15 20 0 McKinley 03 lu Fiat 01 01 In Lake 06 Oi 07 06 07 L Ex |