The Birmingham age-herald., 1905-02-20
INDUSTRIAL NEWS
The New York Commercial of Saturday

The New York Commercial of Saturday says:
 Definite confirmation was obtained yes- terday that the recent reports of a gi gantic consolidation of the leading coal. iron and steel properties of the Birming- ham district have a substantial basis in fact It was learned that the negotia- tons had been quietly carried on for months and that the success of the plan seems now reasonably we'll assured. The plan is an ambitious one and aims at a possible consolidation of practically all the leading coal. iron and steel producers n the southern territory.
 There is a good deal of mystery re- gardlng the financial interests back of the plan. The Southern railway interests are supposed to be lending the weight Of their support to the proposed consoli- dation The Southern railway would be vitally interested in any change of own ership of these properties. owing to the large amount of traffic which 1t receives from the Birmingham district. Interests identified with this company are sup posed to have recently acquired a large interest in the Tennessee Coal and Iron company
 Several conferences have been held this week between the leading officials of the largest southern iron and steel com panies. It is understood that conferences will continue to be held every day in an effort to arrive at a mutually satisfacto- ry basis for the proposed consolidation While interests in a position to speak with authority are extremely reticenr it Is said that satisfactory progress IS being made.
 T. G. Bush, president of the Alabama Consolidated Coal and Iron company, has been in this city since last Thurs day. It is said that he will hold con- ference next Monday with the leading officials of the other southern coal, iron and steel companies. Among those who are expected to attend this conference are J. c. Maben president of the sloss- Sheffield company Don H. Bacon. pres ident of the Tennessee Coal and Iron company. L. T. Beecher secretary and treasurer of the same company, and Alexis W. Thompson. president of the Republic Iron and Steel company.
 It Is believed that through a consolida- tion. of the leading coal. iron and steel 1t would be possible to effect extensive economies and that 1t would have a steadying effect upon the industry.
 The United States Steel corporation is pointed to as an evidence of the great ad- vantages of consolidation. It is said that through the organization of this com pany something like s14000.0O0 is saved each year on the purchase of supplies alone. It Is believed that similar econ omies would be possible through con- solidation of the leading southern coal, iron and steel companies.
 It is understood that the proposed con- solidation contemplates the raising of a large amount of new capital A lack of sufficient capital to develop their prop critics has been the principal obstacle which has stood in the way of the prog ress of the southern companies in the past. Considering the enormous value of the resources these companies control they have never been able to make as good showing of earning power as might have reasonably been expected. It is be- lieved that with an aggressive. central lized management and with large amount of working capitai~ the earnings of these companies can be enormously increased.