The Birmingham age-herald., 1905-02-24
Situation in Birmingham Iron Merger Proposition Has
 an Intense Shock
ALL THE BIG COMPANIES
 REPRESENTED ON SCENE
HoadIey Claims to Have Tennessee, and Old Holders Claim He Has 1t Not, Which Makes
 Things Lively.

New York, February 23.-Cspeciai)-The situation in the Birmingham iron merger proposition had an intense shock in the stock market late today.
 Tennessee had tremendous rise and then a great slump Sloss in the mean time scared skyward and remained high up when the sun set on the stock mar ket.
 Tonight there is grave doubt as to the final success of the merger under the original management. The old owners of Tennessee assert with postiveness that the Hoadley faction cannot produce cer- tificates of a majority of the stock, and are daring the new people to attempt to show their hands in an effort to take over the management. On the other hand the Hoadley faction, now in full posses sion of sloss, Republic Gin Alabama) and Alabama Consolidated. say they hays either majority or pledges for the delv- cry of the same.
 In the meantime it is said the banking interests behind the great railroad cor porations of Alabama have been called upon to participate on mileage basis toward underwriting the consolidated companies. and that they may see fit to urge Tennessee holders to go into ths deal.
 Perhaps the largest holder of Tennessee told me today that on the merger basis up to date, control of Tennessee could not be taken In at less than from 17d to 200.
 On the other hand MT. Hoadley author ized the statement that he considered the full Tennessee issue of stock worth to the consolidation $115 a share. He was willing to take over every share at that price.
 The Sloss common was taken over in the merger agreement at s120 a share, Perhaps $5 a share more was paid for some of it.
 Railroads Much Interested.
 The railroad interests of Alabama are much interested and every railroad of the Birmingham district is represented by it's highest officials here. The Southern of- fclals the Louisville and Nashville. the Georgia Central, The Alabama Great Southern, the Western of Alabama and indeed every railroad interest in Alabama is represented upon the scene of action today. Mir Mccormack and Mir Ramsay arrived this morning and upon the same
 Cg.l.. f1tl. and son.
 Everybody wants to know what is go- ing on and who is to be in the great iron combination. It may, however. be said that each and everyone came on in- vitation. The promoters of the merger propose to take in everything in the Birmingham district, but the success Of the undertaking depends largely upon tho acquisition of the Tennessee company which the promoters have attempted to buy upon the open market.
 They claim to have it. The old Ten nesee people say they have not control. Whether the trades with the other com panies will stand if it developes that full majority of Tennessee stock certih- cates are not in the hands of the Hoad- ley syndicate remains to be seen.
 Say Tennessee ls the Hub.
 Some say Tennessee is the hub of the combination wheel, and that all the spokes and the rim and tire were built upon the assertion that 5S per cent of Tennessee was in the hands of the syndicate wheel wright before any other trade of sale was agreed upon.
 Certain 1t is that the old Tennessee crowd is fighting the combination like Russian battery defending itself from a Japanese infantry charge. To the diplo- matte observer. 1t Is of the most intense interest.
 Both sides are giving out inspired press statements. The vaudeville press agent could not be more eloquent than the rhetorical bursts of the eulogistic writers for the two sides.
 According to reports all the great bank ing houses of New York are on one side or the other. One faction of bankers Is apparently offering millions to aid in un- derwriting the deal. the other faction Is calling in loans on stocks and refusing to advance anything on southern industrials.
 Fight to the Finish.
 It Is a fight 10 the finish-the Hoadley- Gates syndicate backed by many bankers and trust companies on the one side and the old Tennessee controllers on the oth- CT, backed by the Hanover National and  other banks of supposed great influence some of which are supposed to represent large southern interests.
 When such fight is on it is difficult to predict the terms of a merger or whether there will be one or not.
 Yet I would predict that a merger must come in time and very soon. even though this may fall by virtue of jealousies of values. The great railroad interests of the Birmingham district have gone SO far in this contest through the banking interests behind them that some agree ment must soon be reached. even though the stock speculations of the present hurrah campaign of consolidation be elim- mated
 Many have made money here during the week. There may be losses later. The situ- ation grows In interest each day and to- morrow promises actual developments equal to today's from a speculative point Of view. D. w. B.