New-York tribune., 1905-02-08
BIG IRON DEAL RUM0RS.
Started by international Po5cer's
Interest in Southern Properties.
tpr TELeaRApH 10 THE TRIBUNE. ]

Birmingham. Ala Feb. z-Birmingharn has been
rife with to-day Of important consolida-
lions CT Alabama iron properties. aroused in part
by the activity and advance in the stock of the
Tennessee Coal. Iron and Railroad Company. taken
in connection with the announcement just made
that the purchase Of the Alabama Consolidated
Coal and Iron Company. lately reported, was made
by the International Power Company, OF New
York It Will be remembered that the organization
OF the American Locomotive Company. which owns
every locomotive works in the United States and
Canada except the outcome OF the pur-
chases made by the international Power Company
Of locomotive plant after another until. con-
trolling the situation. these locomotive works were
al organized into the American Locomotive Com
pany. The remarkable success OF that company
and the method in which its organization car
ried out taken in connection with the announce
ment. FIRST made to-day, that the international
Power Company was the buyer Of the Alabama
Consolidated. have created a nveiier interest than
ever in the next move 10 be made in the Southern
iron and steel development.
Owing TO peculiar conditions. the International
Power Company was enabled to secure control OF
the Alabama Consolidated Coal and Iron Company
at exceptionally attractive figures and the owner
ship Of that property gives to the international
Power Company a strong position in carrying out
whatever plans Il may have either for the develop
ment of the vast properties Of the Alabama Con-
soldated. for the building of diversified enter
prises 10 consume the iron made by .he latter
pany, or for still further consultations. AS the
international PoWer Company the George II.
Harris CoTliss Engine Works of Providence; the
Greene -WheeloLk Engine Works Of Worcester; the
Arnoskeag Fire Engine Works. OF Manchester.
~ H. and controls the American and British
Ordnance plant al Bridgeport, besides owning the
largest block Of stock IN the American Locomotive
Company. and is thus tremendously interested as a
consumer Of pig iron. it is only natural that it
should have sought to secure q dominating position
In Alabama. which is tie cheapest iron and steel
producing district in the world
In addition to its immense resources Of coal iron
and limestone and the unlimited possibilities Of de-
velopmenl in the production of coal coke. iron and
steel the Alabama Consolidated Coal and Iron Com
pany owns only few miles outside Of Birmingham
about eighteen hundred Of land. Ideally stu
ated for becoming the great centre diversified
dustrfes 20 consume pig iron. and through which
every railroad leading from the East to Birming-
ham passes. On this property there is a supply Of
the purest artesian water estimated by experts to
be practically sufficient for city the size of Bir-
ingham, which would thus afford to Industrial
enterprises established there the most favorable
conditions for ample water
Some years ago Colonel a K Mcclure. the vet
eran editor OF Philadelphia, after an investigation
Of the iron interests of Alabama, said:
It is idle for Pennsylvania and other great iron
and coal producing States close their eyes to the
fact that have reached the beginning of a'great
revolution In these products. No legislation no
public policy sentiment can halt such a revolu-
ton when the lmmutable laws Of trade command
It. and the sudden trend OF the horde from the
Northern forests upon ancient Rome did more
certainly threaten the majesty Of the mistress OF
diggers Of Alabama threaten the majesty of the
sons come upon plain the MONDAY SUM-
ard It Is midsummer madness not to read them
understandingly. We cannot war with destiny;
cannot efface the benefcent gifts Of Him who
leads the waters 10 the seas and sends them back
in the deNs and rains Of heaven. Alabama has
been gifted far beyond even our boasted empire
large portion OF the great iron and coal products
OF the country which enter competing centres will
be supplied cheaper from Alabama than from any
State in the North.
The late John r. Proctor, then president OF the
United States Civil Service Commission. who be-
fore that had for years been State Geoogist Of
Kentucky. made a comprehensive study in 1900 OF
the properties owned by the Alabama Consolidated
Coal and Iron Company and was equally enthusi-
astic over the future of Alabama. In closing his
report he said:
We enter now upon era of steel making IN
NOT distant future that Southern steel will dominate
the markets, as Southern iron has in the last
decade Following the cheap production Of steel
must come the establishment Of Industries in the
South convenient to the furnaces and steel plants
and cheap Goals and coke for the production of
structural steel bridges. etc. Southern steel Will
ot TIE lake region, for export and for the markets
e q 1tI AIahue STATES ana the great south inc
South holds absolute command Of the four great
staples. the practical basis CT marvellous de-
ton o''- Il 0'i' S'sei anu COL
In the light Of these facts the control of such
an important company the Alabama Consol-
idated Coal and Iron Company by the Interna-
tonal Power Company and those who, associated
with that undertaking control so many great
engine and locomotive interests must have a far
reaching effect upon the South. The value of the
Alabama Consolidated properties is indicated IN
the fast that though It owns coal and iron and
limestone lands sufficient for Its needs for many
years 70 come. and therefore has almost unlimited
room for expansion Il is even now, after allow
ing for interest its bonds dividend on its pre-
ferred stock. royalty its coal and ore depre-
ciation etc. still earning u 20 per cent on its
common stock and YET the real development Of the
only just begun