The Birmingham age-herald., 1905-12-27
Improvements Undsr Way VIII 6s Completed and Finishing
 Sapaciy Largely Increased
S1OO,OOO 4 MONTH SPENT IN LAST ELEVEN MONTHS
&8so,o00 More Will Be Put Into lr,1- provements-Repub Company Not Yet Merged With Ten
 nessee-May Be Later.

Don H. Bacon, president of the Tennes- see Coal Iron and Railroad company, re- turned Saturday night from New York, where he had been on business connected ! with the company of which he is the ex- ] ecutive head
 MT. Bacon declined to comment on the recent developments in the Tennessee company occasioned by the transfer of the control of the companys stock to new hands
 In spite, however, of MT. Bacons re- ticence regarding this subject it was learned yesterday upon absolutely trust worthy authority that it is the expressed Intention of the men who lately acquired control of the property to carry to com pletion the many and varied improvements that are now under way, to increase the Finishing capacity of the Tennessee com pany, and to develop rapidly the property by all practicable means.
 From the same authority it was specific ally stated that the forming of hold ing company that will control the Tennes- see and the Republic, in whole or only in its southern branch, has been tentatively discussed. but not yet completed. Whether Or not this holding company will be formed will depend upon circumstances.
 Story of the Coup.
 How the syndicate got control of the Tennessee company, and what it intends to do now that it has full direction of the Tennessee's affairs, came to light yes terday accurately and completely for the 1o. etn holders of the Tennessee company was George Kessler, wine merchant of New York. Last summer MT. I<essler went to Europe. returning in November to New York When he got home he went to the brokerage offices of Moore & Schley and proposed to deliver 5000 shares of Ten anessee stock, which would insure the purchaser control of the company, at the price of s125 a share. Grant B. Schley, the junor member of the firm, said that the stock was not at that time worth s125 but 1t was worth par. It was then selling on the market in the neighborhood of $9O n share. MT Kessler told Moore & Schley that if they would fix a price which they thought was fair he would deliver to them him 3o,OOO shares. A syndicate was prompt
  bought in at s110 a share.
 Members of Syndicate. The members of this syndicate included Grant B. Schley, John w. Gates, Oakleigh Thorne, Leonard c. Hanna, brother of the late Mark Hanna; C. s. Guthrie, D. NV. Oglebay, E. J. Berwind and Col. Oliver H Payne one of the Standard oil mag mates.
 Under the men now in control, the devel- ppment work of the Tennessee company will be pushed forward with all possible speed and in all possible magnitude. With dn the last eleven months the Tennessee company has spent at least slOO,OO0 a month-or more than $1 1,000, ,0o0-in develop ment and improvement work. It will re- uuire in addition to this, ssoO,0oo to finish the improvements already begun. The improvements under way and con- templated are:
 CD The rebuilding of furnace No 5. CD Adding to the new steel plant an open hearth furnace, soaking pits, | stripper building and a rail mutt engine.
 (3) Two merchant furnaces for opening new coal mines with a capacity of from Bo0 to 400 tons day
 (4) Additions and improvements at the coal mines and a great deal of new ma chinery.
 Finishing Capacity.
 Under it's new management the Tennes- see company will concentrate it's atten- fion upon an especial effort to increase the finishing capacity of it's property With this end in view, it is highly proba- ble that a new steel mill will soon be built, at cost of sl50.0oo
 The improvements and developments already under way and contemplated Will when completed, increase the pay roll of the Tennessee company not less than 5C per cent The pay roll now amounts to si00,O0O month. After the plans now forming are in operation, the tennessee pay roll will be not less than slooOO0 a month.
 An effort will also be made to provide the company with what is called 'an abundant supply of cheap if not free water" Under existing conditions, it is explained, that the Pittsburg plants can ship it's finished products and by-products down the Ohio to the Mississippi to Mem- phis and states of the lower Mississippi valley and undersel the Birmingham dis trct in the southern and southwestern states. This condition of affairs the Ten nessee company will attempt to cor rect.
 No Merger Vet.
 The Tennessee company has not vel merged with the Republic. The situation is precisely this: The syndicate that now controls the Tennessee owns controlline stock of the Republic. ITO illustrate, , said a prominent financier yesterday Suppose ten men. who owned the firm of Loveman, Joseph & Loeb, should buy out the firm of Saks. They might con- tinue the two stores under one manage. ment, or continue to run them separately That's exactly what the situation now is respecting the Tennessee and the Re. public. A holding company has been ten tatively discussed, but it has not yet taker definite shape"
 In this connection, 1t was pointed ou that the merging of these two companies would have it's advantages It would re suit in a saving in the clerical and execu