The Birmingham age-herald., 1903-11-27
REPUBLIC COMPANY
 MAY ISSUE BONDS
Amount Expended for Improve mentS Said to be Responsible
SOME IN TERESTING FIGURES
George R. Sheldon, Director of the Company, Says, However, That Had
 Such a Movement Been Con-
 tempIated He'd Have Known.

The New York Commercial of Novem- Der "A says:
 The recent severe shrinkage In the market valuation of the shares of the Republic Iron and Steel company amount ing to points in the preferred stock to- day, is taken as sure indication that plans are under way for raising addi- tional working capital. One report today had it that a s5,00O 900 bond issue is pro- posed. The company has no funded debt. The policy of the corporation since It's or ganization has been to rehabilitate many of the plants taken over. A large num- Der of the properties purchased have been abandoned, and the machinery moved to the most favorable sites for steel manu- facture.
 The work of bringing the plants up to a higher degree of efficiency has result ed in heavy outlays of cash, and the result Is that the corporation has com paratively little cash on hand at time when it is greatly needed. On June 30 of this year the cash on hand had amounted to less than S9OO, 900. As the company Is capitalized at s55, ,O00OO0. of which some-
 
 and it Is able to produce something less than 100000 tons of finished steel and iron a year, it Is apparent that consid- erably more than s9OOOOO cash to carry on it's operations is necessary.
 On June 30 the accounts and bills pay able exceeded the accounts and bills re- ceivable by $1,65O,OOo. and item s65O,OOO in excess of the cash on hand. The situation has been aggravated by the depression which now exists in the iron and steel industry. A report was circulated in iron and steel circles today that prominent financial interests proposed to enter the board. The personnel of the Republic Iron and Steel company is a strong one from the operating end. It contains the names of many of the most prominent steel manufacturers In the country. How ever the stock seems to lack support. and comparatively few sales have car rled it down to the new low level reach- ed today. The local interest of the cor poration seem inclined to let the stock take it's own course. It is not believed that John w. Gates is seeking controlling in- terest in the property. MT. Gates is said | to hold a large block of Republic Iron and Steel, but from what can be learn ed, he has not added to his holdings in recent weeks.
 Dividend May Be Passed.
 Unless provisions are made for securing new working capital, 1t is stated that the dividend on the preferred stock, which Is at the rate of per cent a year, will | ba of ha Republic Iron and Steel company is about s3,30O,00O. Since its organization in 1898 l it has expended in the neighborhood of l s6, GOO, 900 in new construction. As a re- | suit of these expenditures the corpora | ton is in very strong position physi- | cally.
 Of the authorized capital stock of s55,- GOO, ,0O0 $3,000000 is common and $25,OO0, ,0O0O preferred. The corporation, like the Steel combine and other steel concerns. Is suf- l fering as a result of the depression in the iron and steel industry. Regular quar- terly dividends on the preferred stock have been paid since the organization of the company Among the directors are Grant B. Schley, August Belmont, George R. Sheldon, Alexis W. Thompson D. N Ohl and P. l.. Kimberly.
 A dispatch from Chicago today stated that the officials of the Republic Iron and steel company refused to make any statement bearing on reports of plans to raise additional working capital. meet ing of the directors will be held next Mon- day One Chicago report had 1t that in the event of the raising of $50O0,OOO the preferred dividend would be temporarily suspended. The company 1t is said. was lftr f, IT, ing accommodations.
 Statement of Directors. George R. Sheldon, a director of the Republic, today said that he did not be- lieve there was any truth in the report that the Republic Iron and Steel company proposed issuing $5,000,000 bonds He said that if any steps had been taken to raise additional working capital he had been kept in ignorance of the fact. | Another director said that he believed the slump was the result of an organized bear raid. insiders" said he, will not hesitate to buy the stock around todays 1 figures
 l In the last report of the Republic com pany the iron ore in sight is given as 90.- OOOOO0 tons, made of 2O000,00O tons of northern ore and 70,OO0,O00 tons of south ern ore Northern coal Is estimated at 1 2G. 5O0, ,000 tons and southern coal at 5O.- 100000 tons. The northern and southern pig iron capacity per annum is said to be G00.OOo tons: rolling mill capacity, S60,- GOO tons. and steel mill capacity, 5O,Ooo tons.
 The preferred stock of the Republic company which sold as high as 52 last week. dropped from 47 to 40h today clos ing at the lowest level. About 5000 shares changed hands. unusually large transactions of the Republic Iron and Steel company. The common sold as low as 5M. closing at 6ls. Not many months ago the preferred was selling in the 7Os nd tha A howe 2n