Show I MIN i E AND NING J EDITED E BY F. F W. W p AMERICAN A SMELTING VICTIM f OF MISTAKES AllES Failure to Take Public Into Confidence Has Bad Effect 7 BUILD UP INDEPENDENTS ii Guggenheims Are Accused of Neglecting the Parent v. v Company rL American am Smelting Refining 1 on December 31 closed ono one of ot ofie me most unsatisfactory years cars since sinco T organization n It has bas been beon confronted te 1 wit poor pour prices for metals principally silver eUver Another bad feature was the tho It exhaustion of at accumulated surplus of ot the American Smelters Securities compan company com corn pany pan for foz meeting dividend require require- monte ments says s the tho Boston News Bureau This means that American Smelting t 1 Is In dan danger r of or being forced orco to use ue Its Ita own n earnings tp to mako make good tho 5 per por percent percent cent guarantee on tho the preferred pre pro 13 D stock idock of or tho the Securities 8 compan com corn pan pany American Smelting has hns been a a. victim alcUm of lt f its own mistakes It Its dozen or so 80 Items which it terms an nn annual re report report re- re port vort and its utter failure to take tho the public pu Into its confidence aro are re responsible re- re for tho the violent attacks from tram time to time on tho tim stock It Jt would appear that American smelting has been beon paying more attention atten tion to strengthening independent proportion properties rUeA In which tho the are arc ro largely Interested than to up up- building tho the Smelting company At th tho time lime American Smelting took over I the common stock of or th th Smelters Securities company compan in III 1305 it was said that tho the latter ought to earn a a. year ear when now new construction and other ither Improvements emonts were completed Instead the tho company has bas hardly been to satisfy tho tito G 6 j per cent on Its I preferred B D stock nn and the C G ser per r cent cumulative dividend on Its preferred A stock Total capitalization tion of ot American Smelters Securities I company Is What I t Is represented I In this thin capitalization Is not known as a. the Smelters Securities company com coin pony party Issues no statement Virtually I In 1001 1301 the capital stock of American Smelting was Increased from tOO 00 to In connection Wit with taking over o tho the properties of ot tho Gug- Gug An injunction to restrain the merger was applied for and the claim was mn made c that these properties were I worth 1 less than American Smelting Smelting- has expended a comparatively eh small sum suni for new construction con con- since organization and there Is 15 nothing nothing- In the tho report to show that liberal appropriations avo been made for tor depreciation Smelting plants deteriorate de do- rapidly but tho the company compan has expended d not much more moro than a a. year for tor betterments and replace replace- ments monte Last year It expended for new nev construction 6 but expenditures of or this character in previous years a averaged about a n. year Working assets show an Increase of ot not much more than over thelast tho the last five years duo to tho the large larSe dividends divi paid Many any of ot the tho plants are nrc obsolete yet property crt account stands practically at nt w what nt It was was' when the Guggenheim properties wore wco t taken ken over namely It aas been stated state 1 that the plants could be bo duplicated for tor Net liquid assets are approximately which added to es estimated estimated estimated es- es value aluc of ot the plants gives or about the present market valuation of or the preferred stock leaving nothing for tor the tho common |