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Show OIL & MINING JOURNAL JUNE 15, 1970 Modern Minerals shareholders to vote on acquisition of H & A Modern Minerals Corp. has called shareholders to a special meeting July 6th to vote on the proposed acquisition of the assets of H&A Mining & Exploration Co., a closely held Dear Mr. Blackburn: read with interest your answer to a question about life insurance dividends. I dont mean to cut you down but you must tell your readers the whole story. Dividends on mutual funds are subject to tax and dividends on insurance policies are not taxable. Wm Berryhill. I Dear Mr. Berryhill: You are certainly right...dividends from life insurance policies are not taxable income for federal income tax purposes ; the Internal Revenue code recognizes life insurance dividends for what they actually are: nontaxable refunds f I will stick to my first answer that life insurance policy dividends are not true dividends, but only refunds of ; they are called dividends primarily for advertising and public relation values. In these days of rampant inflation anyone on a fixed annuity or similar type of life insurance that will become payable 15 years hence should start investigating immediately as to how much buying power these fixed sums will give them when 1985 rolls around. If history repeats itself most of these policies will be almost worthless as far as providing the luxuries a retired individual would like to have after years of hard labor. over-charg- es corporation. Acquisitions of the assets of H&A Mining & Exploration would be accomplished through the issuance of 1.9 million shares of investment common stock of Modern Minerals. H&A is a closely The special meeting of corporation held whose principal shareholders will be held at 1 1 stockholders are Arthur R. a.m. July 6 at the Pioneer Room Thayer, LC. Fulenwider, Jr., of the Hotel Utah, Salt Lake and Henry C. Van Schaack, Jr., City. Modern Minerals all of Denver. The company has management urged shareholders been primarily concerned with to sign and submit proxy mining and exploration for statements whether they uranium in Grand and San Juan planned to attend the meeting or counties, Utah. To date in 1970 not. H&A has netted approximately Proxies will be returned to $40,000 from ore shipped and shareholders attending the work done in connection with a meeting, the board of directors mining contract the company said, so they may vote their own holds, according to the Modem shares. But, the board stressed, it Minerals report. is necessary for a majority of the Work completed on the shareholders to be present and company's holdings subsequent voting at the meeting either in to May 26, 1970, should person or by proxy to form a increase the net cash flow of H&A-- to a figure in excess of quorum. If it is necessary to postpone $15,000 per month, according the meeting for any reason, such to the report. H&A capital postponement could result in a investment in equipment totals serious setback in the present more than $84,000 and negotiations..., the board indebtedness is approximately stated. $55,000. According to the report, H&A approximately $1,350,000 of ore blocked out by drilling which should bring a net profit has to that corporation in excess of Reserve estimates $600,000. are substantiated by a report of an independent consultant Other ore bodies have been encountered at the property which have a conservative estimated value of $1,500,000, the report states. According to the Modern Minerals board of directors, H&A has to date advanced to Modern Minerals Corporation $100,000 as loans to assist in paying obligations incurred in connection with wells drilled by the company. If the shareholders of Modem Minerals Corporation approve the acquisition of H&As assets as proposed, additional funds will be made available to pay off the remaining trade accounts at that time. Shareholders of record as of June 10, 1970, will be entitled to vote on the acquisition. Dear Mr. Blackburn: was interested in your suggestion to someone considering a private Annuity. I assume that it is similar to the tax shelter advantages of th.installment sale. Jack Sigler. I Dear Mr. Sigler: ' Yes, the procedure is much the same and because we have received inquiries on this subject from time to time I will now attempt to draw a simple case study: Mr. Smith owns, among other assets, $100,000 worth of a highly appreciated common stock which he has held for some time. He wishes to sell the stock' but he is reluctant to immediately pay a large capital gains tax. There is a way in which Mr. Smith, with the aid of his attorney, could enter into an installment sale contract with his son, who would agree to purchase the stock. Under the terms of this installment sale contract, the son's payment for the stock could be spread equally over a period of years. The son could then make monthly payments to his father, in a manner similar to the repayment of a mortgage. The installment sale contract would bear a fixed rate of interest. Therefore, under this arrangement each monthly payment made by the son to the father would result in a payment of interest together with a payment of principal, thus enabling the son to gradually increase his actual ownership of the stock. During the early years of the installment sale contract, a sizable portion of each payment will be interest. This interest portion of each payment results in an income tax deduction to the son in IScdDCieEs, TTpanDStFeD gjenatts, QD DDGDscJcSQecS and others needing rapid data processing... DATACAP Continued on Page 5 This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities. The offering is made only by the Offering Circular. 7,000,000 SHARES Common Stock $0,005 Par Value Kings River Mineral Company OFFERING PRICE: $0.03 PER SHARE Copies of the offering circular may be obtained from the undersigned only in states where the undersignou may legally offer time securities in compliance with the securities laws thereof. BONNEVILLE SECURITIES, INC. 601 Kearns Bldg. Salt Lake City. Utah (101)322-35- 15 the board of directors said, Cost is less than you think Datacap Computer Systems of Salt Lake ISS SouA 2nd Em, Silt LiKn City, Utah FOR INFORMATION 24 HOURS A DAY PHONE: 363-574- 6 |