Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-15
SEEKING TO COMBINE
Efforts to Merge Birmingham
Industries.
MILLIONS INVOLVED
ENORMOUS MINERAL WEALTH OF
THE DISTRICT.
The City Aiming to Outstrip Pittsburg
TO Dictate to the World the
Price Of Pig Iron.
BY WILLIAM E. CURTIS.
Special Correspondence of The Evening Star and
the Chicago Record Herald

Special Correspondence Of The Evening Star and
the Cnicago Record Herald.
BIRMINGHAM ALA, March IA, 1905
For several weeks a party of spectators
in New York has been Juggling for the
consolidation of the principal coal iron
and steel properties in the Birmingham dis
trict, which hitherto have managed to es-
cape the grasp of the octopus and have
been operating independently. They pro-
pose a corporation with capital of an
even s100,O00,OGO, of which s10,00O,O0O shall
be used in the purchase of the properties,
the remaining s30,O0O,OO0 to be expended
In extensions, betterments and the further
development of the mines and other mineral
resources to be included in the purchase.
The object of the SPECTATORS is to bene-
fit the stockholders and the community by
reducing expenses and the cost of produc-
ton; by increasing the output, which
means of course, an enlargement of the
pay roll and to make Birmingham even
greater and more influential in the iron
market than 1t now is. OF course they ex-
pect a fair profit out of the deal. on the
scriptural principle that every laborer Is
worthy of his hire.
Just now there is a hitch in the proceed
ings. A struggle between two great finan-
cial cliques is going on in New York, and
at present it is doubtful which will succeed.
1t is almost certain, however, THAI tIe
merger will sooner or later take place. 1t
is the manifest destiny of these great in
terests. 1t is the fashion of the time; ana
it is generally expected that the question
will be settled at the annual meeting OF the
Tennessee Coal and Iron Company next
May, when the stockholders of that corpo-
ration favorable to the merger hope to Sc
cure enough shares to outvote the present
board of directors, which is opposed to IT,
Public Sentiment Generally Favorable.
Generally speaking, public sentiment in
Birming ham is favorable to the consolida-
ton Everybody thinks it will bring big
money into the city and large increase in
population. The expenditure of thirty mil
lions for new mills and other Improvements
will, of course, stimulate business and add
to the general prosperity; while anything
that will promote the more rapid develop
ment of the extraordinary wealth that lies
concealed in the fields and the valleys and
the hills that surround Birmingham will be
for the general welfare
The originator of the enterprise is 7. G.
Bush of Birmingham, president of the Ala
bama Consolidated Coal and Iron Company
and conspicuous among the ablest, richest
and most successful business men in the
south. Mr.. Bush is one of the few men of
southern birth who have been conspicuous
as leaders in the development of that sec
ton. The greater degree of the material
development of the south has been due to
northern enterprise and northern capital,
but Mr.. Bush has been identified with many
great interests; he has the full confidence
of the people; his integrity has never been
questioned, and financially and CONNER
cially he is by all odds the strongest man
in the state. The people believe him when
he tells them that nothing could add more
to the prosperity Of Birmingham and the.
surrounding country than the consolida ton
of the chief iron and coal properties in Ala
bama. Close organization, he says is nee
essary to secure stability of prices, econom-
ical production and the most satisfactory
results to investors. Mr.. Bush says that he
has been working to this end for several
years. and while his previous efforts did
not attain success. he never gave up the
hope of accomplishing mis- desire.
Wealth of the Birmingham District.
. 'It has been recognized for several
years. Mr.. Bush says, that the most
profitable utilization of the vast mineral
wealth of the Birmingham district could
not be brought about until a consolida ton
of the -.arious interests could be effected
to prevent wasteful competition. And it
was also necessary to induce sufficient cap
ital to interest," itself in the development Of
that wealth We have every advantage
here but harmony and cooperation. Though
it is true that the percentage of iron in our
ores is somewhat less than in those of the
Lake Superior district, they have to be
transported LOCO miles to PittSburg and
all the fuel and lime has to be hauled a con-
siderable distance, while in Alabama coal,
iron and limestone enough to last for CEN
turtles lies within sight of the furnaces
Some conception may be had of the re-
sources of this district" continues Mr.. |
Bush, when it is understood that the COM
panies which we are trying to consolidate
own more than 3,GO0,0O0,000 tons of coal
and 800, 100000 tons of ore in sight. This is
many mes more than is owned by tire |
United States steel corporation. To devel- |
op this great property $50, 600 600 in cash is |
to be provided by the syndicate now nego-
tiating the merger, in addition to the |
money required for the purchase price. This
will be expended in building furnaces
and steel plants and in opening new mines, |
and in other enterprises which will add to
the prosperity of every citizen in the Biz
mingham district. One of the foremost |
and heavy investor in southern railroad Sc
curities, expressed the opinion to me the !
other day that this consolidation would
double the tonnage of Alabama within the
next five years. AS this tonnage now
reaches about 100000 tons year in coal
and iron, the Importance of doubling it will
be appreciated by every one who is inter
ested in the prosperity of Alabama"
Opposition to the Merger.
Five great companies are involved in the
scheme. Four of them, it is understood. are
now controlled by the schemers They have |
not yet been able to secure the cooperation |
of the Tennessee Coal and Iron Company,
the largest of all the factors, which is con- |
trolled by President Woodward of the Han |
over National Bank of New York and his |
associates. Mr.. Woodward positively de- |
clines to consent to the merger, and his |
board of directors sustainS him, but the pro-
moters of the enterprise assert that he does |
,af ft,n Tori 0g