The age-herald., 1901-08-11

J. 6 W. SELIGMAN & CO,
 Bankers, New York. Bond Department,
 W. F. BAKER.
 Tennessee Coal, Iron and Railroad Co.,,
 100 Boardway, New York, June 17,1901.
 Gentlemen-In reply to your inquiry l beg to say that the Tennessee Coal. Iron and Railroad Company has Just author ized the creation of $15,000,000 per cent 50-year, general mortgage sinking fund gold bonds, to be dated July 1, 1901, to mature July'1, 1951 interest on which Is to be payable January 1 and July i in New York City, and the trustee of the mort gage to be the Union Trust Company of New York City.
 Of this issue, $1o.e5s5oo will be reserved to retire bonds heretofore issued by this company, and bonds of other companies upon which it Is liable as guarantor ma turing between 1901 and 1929. Of the re- maining bonds s1, ,346, 300 are to be left in the treasury for future uses, and 8, 900, 600 are to be issued July ], 1901. i-,e .f- = These bonds are to be payable without deduction for ary tax or taxes which the Tennessee Coal, Iron and Railroad Com pany may be required to pay or retain therefrom. under or by reason Sof,any present or future law of the United States, or of any state, county or muni- cipality therein. g " atEIy&@g
 To provide for the retirement of these bonds, a sinking fund Is to be created to provide that on or before the first of Jan uary in each year. after 1902, after pay ing or providing for the payment of all expenses and fixed charges for the pre- ceding year, the company will pay to the trustee, out of the surplus earnings for the preceding year, an amount equal to one per cent of bonds, then issued.
 The proceeds of the $3,000000 bonds issued at the present time are to be used to reimburse the company's treasury. The company has made no
 issue of bonds since 1887, since
 which time 1t has expended
 for permanent improvements
 to it's property. as shown by
 the treasurer's annual re-
 ports, the sum of ............. .$4, ,493, ,53S. .5S During the same time, reduce
 tions have been made in the
 amount of the company's
 outstanding bonds. through
 the operation of sinking
 funds and otherwise, to the
 amount of ........4.. .,....... 1,e4a, aoo.oo The company has also expend
 ed in the construction of
 mills of the Alabama Steel
 and Ship Building Company.
 over and above the money
 realized from the sale of
 bonds and preferred stock
 of same, about ....s........... 652, ,46S. A Total ........ .!..:... ....... .$6, ,398, BOT O2 The company is the, owner of the only steel plant in the South. It should in time supply the local demand for many steel products, especially rails, sheets, cotton ties, and other shapes
 The company is now making open hearth steel equal to any. and in addi- tion to its business of mining and selling coal, and making and selling pig iron. It should. by reason of the very favorable location of It's steel plant, export It's sur plus steel output to advantage.
 As showing the company's growth, r beg to state that by the books 1t appears that the
 Net earning for the year end-
 ing December s11s99. were. .s1. .s65, ,7O5 CT Net earnings for the year end
 ing December 31, 1900 were . 2,339, ,29s. .2s Annual interest charges, including in- terest on the s3.0O0.000 new bonds will be $S01 ,29c co, and the interest charges will be reduced by refunding as our bonds ma ture.
 The Union Trust Company will issue temporary bonds, exchangeabie for regu- lar bonds when prepared. and in such amounts as you may desire, on July 1, without expense to you. .,
 The legal matters pertaining to this issue have been under the direction of Messrs. Boardman. Platt and soley, a copy of whose legal opinion certifying to the reguality of all proceedings and the issue of the bonds we win have addressed to you, without expense
 Any further information you desire I shall be much pleased to furnish at your request, at any time Yours very truly, (signed) AD. H. BACON,
 Chairman of the Board of Directors.
 The Tennessee Coal Iron and Railroad Company was organized in 1860 and has passed through several panics and reriods of depression, but has never defaulted on its bonds. We call special attention to the statement of net earnings. being nearly three times the interest charges and the large surplus shown over fixed charges; also, to the reduction in interest charges that will be effected as the old bonds mature or are taken up by the new issue Application will be made to list these bonds on the New York Stock Exchange, and we think they will advance in price. We offer the above bonds. subject to prior sale or advance in price, at 102 and accrued interest.
 sTBINER BROTHERS. Bankers.
 S-11-at Birmingham. Ala