The Birmingham age-herald., 1904-01-12
FOUNDRY PLANT IS
 SOLD ID AJAX CO. Bates Metal Co. Closes Deal With Philadelphia Concern
LARGE PAYMENT IS MADE
Transaction Confounded With Rumors of a Leakage in Storkekeeper's De- partment of Southern Railway.
 There Was No shrotage.

The sale of the foundry plant of the Bates Metal company of this city, to the Ajax company of Philadelphia, for s72,. 169 has resulted in confusIon of reports concerning an alleged leakage from the storekeeping department of the Southern railway. It had been made to appear that a shortage. amounting to the sum of s72,- l69 had been discovered and that s22 oOO of this amount had been paid.
 On account of having the contract to furnish the brasses and other metals for the Southern railway the Bates Metal company has been made a party to the rumor and the officials of both companies are very much annoyed
 R. M. Bates of the Bates Metal com- pany, explained the matter last night as follows: 1T think the sale of our plant to the Ajax company has been confounded with the reported shortage or leakage and this Is responsible for the erroneous rumor
 No Shortage.
 "As matter of fact there Is no short age or leakage from the storekeeping de- partment so far as know My company has had the contract for furnishing sup piles to the Southern for several years and we have done a thriving business. Two or three years ago the storekeeper for the road when in a pinch would ask me to order necessary supplies for quick job. a broken down engine for instance, from outside concerns If I didn't have 1t in stock. In return the old scrap brass from the road was turned over to me to place on the account for these extra or- ders. Of course I expected the company to pay thse outside bills.
 Matters went along this way for year or two until 1t became necessary to stop this irregular practice as 1t was difficult to keep the business straight
 Paid the Amount.
 MT. Plant and another auditor for the 1 Southern came here two or three months ago and after looking over the books 1t was found that the outside bills amount- ed to $23,000. This company refused to pay on account of the irregular manner in which the goods were bought. l then paid the amount and the difference be- tween that and the price of the brass turned over to mo Is what we lost. I iliiih IL lO oOHitliiilB iihc @l-4 900. paid MT. Plant, the auditor, in full and everything between us is perfectly harmonious. In fact, we still have the contract for furnishing southern supplies. MT. Plant at my request began nego- tiations for the sale of our plant to the Ajax company of Philadelphia and this deal has just been concluded. We get s72,169 for our plant and the stock on hand. I received s3O,oo0 of the money yes- terday"
 An official of the Southern railway last night confirmed the statement made by MT. Bates. 'So far as I know" he said, T know of no leakage or shortage in the storekeeping department, though I un- derstand there was an irregularity In the methods in which nothing criminal was done or intended. While I can give you nothing but semi-official information, I am of the opinion that every cent that was due has been paid and the best of 1 feeling prevails"
 The Ajax company of Philadelphia, which purchased the Bates company 8 plant, has the contract for furnishing the Southern in the eastern territory and for a long time has been anxious to enter the southern territory. For this reason they looked on the Bates proposition with favor and the deal was finally consum- mated