The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-03-29
FEW CAVILERS AT
FUTURE OF SOUTH
Favorable Comments on the l..
G., l. & R. R. Co.
Mr., BACON'S MANAGEMENT
Birmingham to Be Second Pittsburs
and Ensley Second Home
stead-some Logical
Analysis.
Mr.. BACON'S MANAGEMENT 7

tiles department regarding the recent re-
port of Chairman Don II. Bacon of the
Tennessee Coal Iron and Railroad COM
pany, which contains some very comph-
mentary words regarding the manage
ment of the company.
Among other things the statement says;
TT has long been the opinion of shrewd
and conservative students of industrial
conditions that the Tennessee Coal, Iron
and Railroad company is one of the most
promising properties in the country, and
the most important factor in the iron
and steel industry outside of the United
States Steel corporation.
This may seem like an offhand state
ment, but a look at the company's re-
port for the year ending December 81
1902, recently issued, will endorse this
view in every way.
Second Pittsburg.
''There are few cavilers at the future
of the south, and the Birmingham dis
trict in Alabama is destined to be, If 1t
not already is, the center of the south
lands arterial system. The Tennessee
it is most generally known-has built up
at Birmingham and Ensley what will
be before long a second Pittsburg and
Homestead. The railroads Of the south
are seeking entrance to the district and
those already having connections are
STRENGTHENING their positions. The COM
pany owns mills of the most approved
md
iron mines, and above all Is under the
most able and conservative management,
as many of the statements below will am
ply prove. In a word, it is in position
to stand alone dependent upon its own
resources, outstanding and upbuilding It's
strength, and the result Of all this is
not hard to conjecture.
1.-THE company earned after all charges
6h per cent on it's capital stock, which
Is a gain of 4B per cent over the pre-
vious year. Instead of using this to pay
dividends, however, the entire amount
was turned into improvements, with the
view of bringing the capacity of the COM
pany to a total more clearly approximate
ing its eapability of production and its
earning capacity. With all these facts
in its favor what must be its showing at
the end of the present year? Is 1t not fair
to assume that its surplus applicable to
dividend payments reasonably will have
doubled, and IL these sums are again
turned into improvements or even part
of them what must be the dividend earn
ing power of the company after such
time?
ut has been stated and with reason that
when Tennessee Coal and Iron begins to
pay dividends they will be as regular and
as sure as those of the best class of
bank and insurance stocks
"An evidence of the care with which
the resources are husbanded and i'm
proved appears in Mr.. Bacons statement
that coke oven gas, which has heretofore
been a waste product at nearly all the
ovens, is now used to make steam for
pumping and hosting, and will soon
steam the boilers that are to run the
electric power and light station now be-
ing constructed to supply all of the fur
naces, mills and shops at Ensley.
'Mr. Bacon, who was formerly with the
Minnesota Iron and Steel company, and
who has wrought and is still working all
these wonderful changes, is man known
to be capable, experienced, conservative
and honest. 1t has been said of him when
he gave an estimate in the value Of min
eral lands
Tribute to Mr.. Bacon.
of that's Bacon estimate, you can
multiply it by three and still be long
way on the safe side' Not bad tribute
this to conservatism.
1T has been said that comparisons are
odious, but however this may be they are
nevertheless valuable. The Tennessee
Coal and Iron company owns mineral
lands superior in assays generally and
equal in area to one-ninth of the total
holdings of the United States Steel cor
poration. The Tennessee Coal and Iron
company Is capitalized at 1000, 900 In
round figures. This Is all In common
stock, the preferred being merely NOM
inal and all held by the company. The
United States Steel corporation. on the
other hand Is capitalized at about fifty
times this amount Now, leaving plants
and equipment out of consideration, Ten
nessee Coal and Iron company stock Is
worth on the value 1t represents in min
eral lands alone over 1873 II United States
steel common is worth SO. and no one who
studies the subject has the least doubt
that steel trust stock Is worth much
above that point. All this, as we have
stated, is merely by way of comparison,
and not intended In any way to decry the
value of the trust stocks. Exactly what
we said of the trust stands good in the
case Of the Tennessee Coal and Iron COM
pany.
TT Is to be noted too that the progress
has been made in that quiet unsensa-
tional way that carries with 1t the earnest
and sole purpose of establishing In the
south a great iron and steel plant on
scale proportional to the company's inn
mense holdings Of valuable iron, coal and
hux lands. The course now being pur-
sued will make Tennessee Coal and Iron
one of the strongest. most independent
and lucrative coal, iron and steel COM
panies in the country.
There need be but few words added to
those we have written above. The Han
servative institutions in the country owns
a large block of Tennessee coal and iron
and will part with it only for many times
its present value. The steel trust may
at some future time take control, but IL
will pay for such control more than II
maid for any comnanv now owned nv n ,,