The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1898-12-02
ROW AMONG SHAREHOL DERS
Assets Far Exceed Liabilities and Con-
Germ in Good Condition.
STEEL PLANT AT BOTTOM OF IT
Deficit in Subscriptions for 100000
Preferred Stock Which Hetty Green
and Others Refused to Join
in Making Up:

The subterranean story of the Birming-
ham Rolling Mill company's assignment
came to the surface yesterday. 1t was a
game of put up or be frozen out among the
stockholders.
The contest may go on for time, but 1t
will not affect the rolling mill proper. The
great plant has not been closed down
moment, and will not be. 1t win work on.
converting pig iron into bars, plates and
slabs, making steel and converting the
same into billets and girders and rods and
bars. The laborers knew not in a practical
manner that there has been any jolt or jar
in the financial department of the concern.
They got their semi-monthly pay yesterday
as usual, and there is no excitement among
them.
AT the same time there was excitement
in financial circles in the city yesterday.
Wonderment and mental speculation were
indhlged in on every side. Meetings of
creditors and preferred creditors and in
terested parties were held galore. The COM
mercial club rooms were in demand. The
Offices of the big iron concerns, the cred
itors, were filled with eager, interested
men, discussing the meaning of the thing.
Finally a statement of the financial condi-
tion Of the concern was given out. At the
same time the proceedings in the bank
ruptcy court came out, creating additional
excitement. Then the big creditors settled
down and carefully examined the financial
ukn x.rl&xf
sisnment was made Then the assignees
met with the creditors and explained 1t
was all plain-a game Of put up or get out.
The concern was able to pay Its debts.
The large creditors evidenced the most emil
nsnt satfsfaction. ana resolved at once that
1--WE sre satisfied to await your own con-
venience in meeting the obligations due
us.''
Preferred Stock Of Steel Plant
The story is this: When the rolling mill
decided to build a steel plant nearly two
years ago 1t was planned to issue preferred
I stock sufficient to pay for the construction.
| The company at that time had nearly $780,
/ 600 OF stock outstanding. 1t likewise had
i an authorized issue OF $500 600 of bonds held
| in the treasury, but not foated. The bonds
[ were simply held in the company's treasury
4 to be used as collateral for Temporary
7 loans and were often used for this purpose
| The steel plant was begun and completed.
| Quite an amount Of the preferred stock was
subscribed for in Birmingham. The ball
| ance needed was to be taken proporton-
ately by the holders of the common stock.
Holders of about half this common stock
| declined to take their proportionate share
| OF the issue OF preferred stock. The others
| declined to take 1t all, and here the breach
| came. AS a result, only about $4,000 of
| this preferred stock was taken-largely in
Birmingham. In the meantime, the steel
| plant was constructed at cost of about
| $200,0o0 The difference between the prefer
| red stock subscribed and the cost of the
plant was paid from the operating capital
| OF the concern. .
In Cramped Financial Condition
This naturally brought about cramped
| financial condition, deprlving the great
| plant OF about $12S 900 of operating capital.
! More ready operating cash was needed.
Some of the large stockholders met and
| decided that all of the stockholders must
| subscribe their proportionate amount to the
preferred stock issue. 1t is said Mrs. Het-
| tie Green and other holders declined. Then
| issue, or a resort on the part of this few
individually, but great in holdings, to force.
| The force applied was the deed of assign
| ment filed on Wednesday
just what will be the result of the ma
| nipulation is yet matter for speculation.
The plant will continue in full operation
under the assignees, Messrs. Barr and
| Ward. Eventually the belligerent stock
holders may put up funds for additional
stock. or the controlling stockholders may
buy in the plant and reorganize it, prac-
tlcally freezing out those who have been
the recalcitrants
\ The financial status of the concern given
out yesterday to the creditors show it to
be in condition far from bad.
Corcsrn's Financial status
The statement as made by President Cald-
well to the creditors, show assets to the
amount of $1,l43oO0. 1t is divided as fol-
lows in values:
Rolling mill and steel plant. -. IS Isl, 600
Materials and manufactured goods
on hand... -. 49,. ...s... ...... PSI 600
Cash and accounts receivable 49,. 5000
Total assets. -. -. -. =. 80 .H143,O9O
The debts of the concern are about $492,-
600.
MT. Walker Percy's Statement
1t; wanted fifteen minutes to o'clock
this morning when the meeting in the
office Of Mr.. Walker Percy. general attor-
ney of the Tennessee Coal. Iron and Rail-
road company, adjourned. AT the meeting
the Birmingham Rolling Mill management
NIT