Transferred from sheridan and Mendota Mill Taels... 992,535.23
Shanghai, 26th March, 1890.
Dayspare, Rivcet & Ca., Secretaries. have examined the books and vouchers of the Company and certify that the above statements are in accordance therewith.
S. Waker, Auditor.
The Mill Account is the same as that printed with the Sheridan mine accounts of the Mendots Sheridan, and. Sim upon a proposal for the consolidation
Mining Companies, to be presented to the shareholders at an extraordinary meeting, to be held at the office of the secretaries, on Monday, the 31st March, 1890.
The directors have to place before the shareholders a proposal they have received from the "Smuggler Mining and Milling Ca. for the consolidation of the Smuggler, Sheridan and Mendota Mining Companies."
An informal meeting of shareholders in the three Companies was held at the secretaries' office on the 17th inst., to meet Mr. J. A. Porter, the president of the Smuggler Ca., by whom the proposition was ited, and who had come over from the mines chiefly for that purpose and to advocate the scheme. Mr, Porter at that meeting entered fully into the terms of his proposal, and these are embodied in official correspondence that has passed between him and your directors, and are as follows The Smugeler Company to pay one hundred thousand dollars (gold) to be equally divided between the Sheridan and Mendota Mining Companies.
The three Companies then to be merged into one with a proposed capital of four and a half million dollars.
One third of the new stock, or say one and a half million dollars, to be' apportioned to each of the three Companies for division among its shareholders.
The Head-office and working committee to be in Colorado, and the Company to be subject to the laws of that state.
A Transfer-office to be opened in Shanghai.
The position of the three Companies up to date of consolidation to remain exactly as at present, each one being responsible for it own debts and expenses, und each one receiving the proceeds of all ore mined from its own mine.
At the date of consolidation the new Company to take over all outstanding conts and leases in connection with the three mines.
In the event of the lessees abandoning their lease prior to the date of consolidate the juggler Ca. to pay at time of consolidation its share of any machinery or supplies that the Sheridan and Mendota Companies might have to take over in consequence of such abandonment, but not to be liable for any work done after abandonment until date of consolidation, as it would receive no part of the ore taken out.
After due consideration and constant personal communication with Mr. Porter, the Directors unhesitatingly adopt his views and recommend the proposal to the shareholders. The management of so large and valuable a property, the saving of time, expense and trouble by having " board on the spot, are, as pointed out by Mr. Porter, matters of great importance to those interested in the future of the mines. The Directors are aware that there arcobjections totransferringthe management of the Company from Shanghai to America, but there is reason to think, upon enquiry, that these are more imaginary than real. "Instead of having a deed of settlement, the uew Company will be governed by the State laws of Colorado, which are considered as neatly perfect in mining matters as they can be, and by certain bye-laws of its own. 'The latter would be the same as those for the "Smuggler Company," copy of which can be seen at the secretaries' office, as can also a book containing the mining ws of Colorado. or two of the Shanghai shareholders on the Further it is in contemplation to place one
directorate, The area of "Smuggler" is less than that of either of the other two claims, but it is the oldest established, and professional opinion pronounces it to be equally valuable with the others, from the richness of the ore it issturning out.
offering one hundred thousand dollars to the other two companies as a third share of the expenses attending the purchase and construction of the mill, inclines, tunnel, &c., the Smuggler Company considerably overestimate the actual cost, as explained by Mr. Porter. The fifty thousand dollars to be paid to the Mendota Company will enable it to get out of debt and provide for a substantial dividend.
The directors believe, with Mr. Porter, that the consolidation of the three mines will lead to considerable saving in expenses and to quicker and larger returns to shareholders, and believing so, their votes will be given in
The matter, otherwise, of course, rests with the shareholders themselves to decide.
J. M. Rusczr, Chairman, Shanghai, 26th March, 1890.
Text read from the printed page and cleaned; old type leaves the occasional error.