The Birmingham age-herald., 1903-02-17

"---s-s-s Is believed a further reduction is pos- sible.
 At nearly all of the iron mines on Red mountain new crushers have been placed. The ore supplied to the furnaces is now of proper size, the consumption of coke per ton of pig iron has decreased, a larger percentage of the higher grades of iron is produced and more uniform furnace operation has been secured.
 At South Pittsburg, Tenn, this com pany owns furnaces, and at Tracy City and Whitwell-the latter is but eighteen miles from South Pittsburg-coal mines containing large amounts of coking coal but no ore supply had been secured, it being the custom to buy ore. A steady supply was uncertain, and the cost was often excessive. Your officers, therefore, bought in November last a tract of land containing sufficient ore to supply for many years the South Pittsburg furnaces, the equipment of which will be strength ened, so that operations may be more economically conducted.
 The Steel Plant.
 The product of your steel mill has been materially increased and the errors in de- sign aud construction are being corrected as rapidly as possible, but at large cost both In time and money. During the past month the rail mill has been successfully operated, and we are prepared to furnish rails of all standard sections. Those all ready rolled are of excellent quality. Explorations with diamond drills for the purpose of determining the quantity of raw material owned by this company are being conducted, the results of which up to date have been satisfactory. The quan- tity of ore and coal acquired during the past year by the purchase of fee lands Is approximately equal to the quantity re- moved. As stated in my report of last year, for each ton of coal and ore con- sumed or sold a sum is charged which will, before the exhaustion of your prep erty, extinguish the value of the real estate as 1t now appears on the books.
 Competent men are giving careful atten- tion to the production of coke, with the result that the percentage of yield has increased, the quality improved and the quantity consumed per ton of pig Iron has been lessened.
 Changes and improved practice at sev. eral of your furnaces have resulted in the largest and most uniform product re corded.
 For full details of the years business, your attention is drawn to the attached report of the secretary and treasurer. DON H. BACON, Chairman.
 Earnings.
 Statement of earnings from operation for the fiscal year ending December S1 ; 1902, compared with the year of 1901:
 Net earnings from operation, after pay. ment of all operating expenses, including repairs, renewals and refining, taxes, in- surance, administratitn and provision for bad debts and doubtful accounts, g, b,D,. BPS; balance of interest received on loans and discounts. s5.67925; miscellan- eous income. s2,OO4.42; total profits, s2. 656, 746.o5; increase, s031, .o5.
 Deduct; Interest on bonded debt and dividends on guaranteed securities, s75O.- 2S3-O9; taxes on unused lands and admin istration of land department, $53, ,s6s. .0S- total, sS04 IT: decrease. $57, ,93S.22.
 Net profit remaining after payment of all charges except depreciation, s1,s52,- 495.7S; increase. 9S9,O47.27.
 | Deduct: Amount credited to royalty and replacement funds during the year. same being set aside each month out of earn ings at fixed rate per ton on ore, coal and coke produced, and intended to cover | depletion of mineral lands and deprecia- tion of coke ovens and of plant and equipment at mines, 19,5ss.s2; increase .7S surplus earnings, s1. .4S2, ,95s s6; in. crease. s92s. 744.49.
 Profit and Loss Account.
 Surplus earnings (see preceding state ment) sl. .4e2, 95Ss6
 Add other credits to profit and loss ac. count. Book profit on purchase at dis count of guaranteed interest-bearing secu rites of proprietary companies, sl31, $50 profit accruing from sale of Sheffield fur. mace property above inventory value oi same, $2S6 25S.51; profit realized from sale | of investment in Lady Ensley Coal and Iron company bonds, s24, S2S.25. making ss2, ,436. .76; total of $1,s25, ,S95.72.
 1. Deduct premium paid on Tennessee | Coal, Iron and Railroad company bonds l purchased for sinking funds, s167 .25 balance, s1, SOs 624.47; deduct dividends or | preferred stock 2S,17466; net remaining credit to profit and loss account, G.7s5.. 449.S1. Which has been applied as fol. lows: For new construction. at mines SO7. .24ssl; at mills sS6s,O1s.32; at furnaces $194,6ss.s4 making s1,2e4,9eo57; and for purchase of mining plant, s45.601.s9; tota l construction and additions, a,Sl0 562. 46