The age-herald., 1902-05-07
TENNESSEE CO.'S
 ANNUAL MEETING Report of Chairman Bacon and
 Treasurer Beecher COST OF IMPROVEMENTS Last Year $75e,ooo Was Expended In Construction and Improvements,
 and Work Now Under Way
 Will Cost $1,o2o,ooo.
COST OF IMPROVEMENTS

The stockholders of the Tennessee Coal Iron and Railroad Company held their an- nual meeting at Tracey City, Tenn, yes terday A board of directors was elected for the ensuing 12 months and these di- rectors will meet in New York and elect president and other officers.
 The report of MT. Dan H. Bacon, chair man and Mr. T. L. Beecher secretary and treasurer, follow:
 May 6, 1902. To the Stockholders of the Tennessee
 Coal, Iron and Railroad Company:
 At the close of the year 1900 the floating indebtedness of this company amounted to $412o.0oO, of which S92O.OOO was for ac- count of current business. the balance of $3, 200, GOO representing borrowed money and overdue accounts. Your board of di rectors decided to issue a general mort gage for S15,O0O GOO; $10 800 to be used for retiring bonds then outstanding as they fell due; 8, 900 to be sold and the floating liabilities reduced; s1.946, 800 to be sold and the proceeds expended for addi- tions and betterments.
 Up to this date, April IT, 1902, 1t has been necessary to market only SS,OOo0OO of bonds, the money received for them reducing floating obligations the balance required (exoept $10000O still duel having been taken from earnings. All bills are now met promptly CT anticipated, and discounts secured. During 1901 for con- struction and improvements, the sum of $759, 900 was expended and the company has, or will soon have under way, at Its mines, furnaces and mills, additions and improvements costing the aggregate sum of s1.020,000. Further important additions have practically been decided upon. Under the system of accounting that was followed prior to 1901, we believe that to real estate or plants were charged many items that should have been charged to cost, thus increasing the book value of your property and the profits shown and reducing the apparent cost of output. The method now followed is be- lieved to be conservative Had the market price of pig iron during 1900 continued through 1901, the net earnings of the com pany would have been 1,704, 22S .24 greater than now shown. An examination showed that many of the plants for manufactur- ing and the equipment at others were overvalued, and that accounts receivable included large sums that were In no sense receivable. In the readjustment, plants, investments. accounts and bills receivable were reduced by the sum of $6, 424,00
 This company holds in fee large quanti- ties of iron ore and coking coal, estimated as sufficient to supply our present fur naces sixty years. and so located as to insure cheap delivery.
 The iron mines are being put in order to make a large ou. put at reduced cost, and the coal mines are receiving some at tention.
 In the construction of your steel mill several new and untried devices were in- troduced. Their removal and the subst- tuition of others has been costly both in time and money. The output. which is now about 14,00O tons per month, will be increased.
 Your directors recommend that the net earnings be used to improve or replace your different plants, making them con form more closely to the best ones of like character
 A statement from the secretary and treasurer, showing the operations of the company for the year 1901 and its present condition, Is attached hereto. DON H. BACON, Chairman.
 General Financial Statement. Gross earnings from operations
 for the year were as follows. a,724,137 90 Profits from mining
 and manufact' ing. ..H, $40, 1O4.94 Rents io'ooI.o9 Miscellaneous ... .... 7,31.27 Deduct Interest on bonds and floating
 debt, interest and dividends on guaranteed securities and
 other charges amounting to. S62, lS9. 39 Net earnings from operation. 1861, ,s4S. .5l Add
 Other income .... 1,5OO. .OO