The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-11-25
OBSERVATIONS ON
MINERAL DISTRICT
Iron Age Letter By One of the
Editors
ALABAMA IRON MAKING
Some Recent Developments In Indus
trial Situation Around Birming-
ham-Work of Tennessee
Coal, Iron G. r r Co.

Special correspondence of The Iron Age.
Birmingham. November II, 1906.-The
coming of abundant northern capital into
the Southern iron industry marks new
period in it's development. The extensive
programme of new construction by the
Tennessee Coal, Iron & Railroad COM
pany, involving in work already laid out
an expenditure of 100000, represents
regime of which iron and steel making
In this district hitherto has been largely
innocent A characteristic of the Ten
nessee company always heretofore, anu
particularly under the administration pre-
cedine the last one. was it's insufficient
financial resources. Its engineering stan
found abundant opportunities to spend
money in ways that would have ylelueu
good returns on the investment. but
old obligations steadily blocked the way.
In the dark days Of the nineties, Wheh
the Southern furnaces were hounderlng
in the mire of So pig iron-and truth
full history records transaction as low
as $5.65-the financing of the Tennessee
company's ordinary operations was often
carried on in 24-hour periods one day
closing without any clear way appear
ing to meet the demands sure to come
with the next.
A New Basis of Values.
The change the past year has brought
to the Tennessee company is seen also
in a measure in other iron and steel
companies So many extravagant hopes
have been entertained of the iron indus
try of Alabama, and the realization or
most of them has been so long deferred,
that it is not surprising northern capital
has not rushed in, with all the opportuni-
ties afforded through the various con-
solidation schemes of the present pros
porous period in iron. 1t has been the
habit to say that some day interests with
ample capital would get behind the Ala
bama iron industry Then, 1t has peen
granted, the beginning of the long pre-
dicted day of great things might be
loked for Whether the Tennessee COM
panys properties, for example. have made
their last change of ownership for a
long term of years is a question not I'M
anmousiy answered. But the present
owners have given all the proof that
could be expected of their intention to
stay with the properties and develop them
TO an extent not approached by anything
undertaken hitherto.
The leap to a new standard of values
for mineral properties and for the secu-
rites of iron and steel companies is the
outstanding fact in the new situation.
few men in Birmingham who have gone
up and down the slopes of Red noun
tain in the past ten years and picked
up leases here and bought land outright
there have turned their foresight into
moderate fortunes. And it really appears
that the long chapter of losse in South
ern iron properties is near its end-the
unfortunate outcome of the Lookout
mountain enterprise Notwithstanding
that the day of iron and steel making
for profit has come in.
Some Examples.
Only a few years ago men familiar
with the resources of the Tennessee com
pany, for example. would have put the
real value of it's stock at scarcely more
than per cent of what it brings in the
market today. OF actual transformations
in money values the Manufacturers
Record cites the following, which fairly
represent the extent of the upward move
ment
"Only a little over year ago Balti-
more people who had every possible op-
portunity to learn something of the value
of the stock of an Alabama coal and iron
company which was controlled here had
so little faith in the future of coal and
iron properties that they were unwilling
to buy the stock at $40 share. which
within a year has advanced to $40 or $50
share. Baltimore capitalists owning a
250O-acre tract of coal land in West VIZ
gnia sold it for $40 an acre about six
years ago, and within a few months the
buyer sold the timber on II for 500 an acre
and has within the last few months re-
fused $50 an acre for the coal on 5000 acres