The age-herald., 1901-08-12

J. & w. SELIGMAN- & CO,
 Bankers, New York. Bond Dep" rtment,
 W. F. BAKER.
 Tennessee Coal, Iron and Railroad Co.,.
 100 Boardway. New York, June 17,19O1.
 Gentlemen--In reply to your inquiry, beg to say that the Tennessee Coal. Iron and Railroad Company has just author ized the creation of $15 100000 5 per cent 50-year. general mortgage sinking fund gold bonds to be dated July 1, 1901, to mature July 1, 1851, Interest on which Is to be payable January and July'1 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 6sS 800 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. Offthe re- maining bonds $1, 800 are to. be left In the treasury for future uses, and sS,0O0,OOO are to be issued July 1, 1901 Y
 These bonds are to be payable without deduction for any tax or taxes which the Tennessee Coal. Iron and Railroad Com pany may be required to pay or retain therefrom, under or by reason of any present or future law of the United States, or of any state, county or muni- cipality therein,
 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 s3,0O0000 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 .............&, ,493, ,53S. .5S During the same time. reduc-
 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 ........... ......... 1,242, 300. .0O 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 ...............f 652, ,468. A Total ........ ....... ........ .$6, 398, ,307. .02 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- ton to it's business of mining and selling nd al nd ,,ier fro, t+ should, by reason of the very favorable location of its steel plant, export It's sur plus steel output to advantage.
 As showing the company's growth. beg to state that by the books 1t appears that the \.
 Net earning for the year end
 ing December 31 1899, were .$1, ,S65, ,705. .67 Net earnings for the year end
 ing December 31, 1900 were. = 2, ,3s9, ,29S. .2S Annual interest charges. including in terest on the 5000, 900 new bonds will be sS01, ,290. %, and the interest charges will be reduced by refunding. as our bonds ma ture. S
 The Union Trust Company will issue temporary. bonds exchangeable for regu- lar bonds when prepared and fin 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 will have addressed to you, without expense
 Any further informa ton you desire. shall be much pleased to furnish at your request, at any time. Yours very truly, (Signed) D. 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 periods of depression, but has never defaulted on it's 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. and recommend them as a desirable investment of an un- usually safe character.