The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-10-19
INDUSTRIAL NEWS.

c. E. Buck, vice president OF the South
ern Steel company, is in Alabama for the
purpose of taking charge of the Georgia
Coal and Iron company, recently acquired
by the former company. The office of the
Georgia concern will be moved to Biz
mingham and merged with the general
offices of the Southern Steel. The price
paid for the Georgia Coal and Iron COM
pany's property is understood to be ST.
100000, instead of $2.000000. as previously
stated in some of the newspapers. 1t is
said that the owners of the Georgia COM
pany were eager to take part of their
pay in Southern Steel stock, but that the
directors of the purchasing company were
not willing to part with the treasury
stock. Payment was made in cash and
bonds. The brown ore mine which the
Southern Steel company takes over from
the Georgia Coal and Iron company is of
high value, and the blast furnace at
Rising Fawn is in prime condition. In
discussing this deal a Birmingham man
prominent in the iron trade said yester-
day:
THE Southern Steel company got
great bargain. 1t is safe to say that the
new owners would not part with this
Georgia properly for 100000"
]. M. Barr, former president of the
Seaboard Air Line, who has been in the
Birmingham district for several days,
was entertained by John B. Darlington at
his home last night Mr., Barr has long
taken lively interest in the district and
the hope Is expressed that he will make
substantial investments in this section.
The valuable red ore property which the
Republic Iron and Steel company has
just purchased from M. L. Potter of
brooklyn, is located a few miles from
Birmingham. 1t has been operated all
along by the Republic under lease. The
mining station is at Spaulding junction
on the Birmingham Mineral road,
The New York Herald of Tuesday has
the following:
Negotiations are practically completed
whereby the Republic Iron and Steel COM
pahy will acquire a tract of iron ore land
In Alabama wh CHI is estimated to contain
z, 100000 tons of low grade iron ore.
Officials of the Republic company
stated yesterday that the announcement
of the completion of the deal was prema-
ture and that in the circumstances no de-
tails could be given.
ut was stated in other quarters, how
ever, that the price paid for the ore was
$4,000, of which 100000 is in 5 per cent
bonds of the Republic company. 1t was
figured out that II the tract of land con-
tains 100000 tons, the Republic company
paid at the rate of only VA cents ton.
The United States Steel corporation paid
James ]. Hill and his associates 81 IS a
ton for the northern ore.
Standard ore contains, however, 50 per
cent iron. The Alabama iron is of low
grade, however, and contains about 3S per
cent iron, and in some cases lower per-
centages of iron.
According to the schedule of prices
made in the Hill ore deal, the basic price
per cent iron AS the percentage of iron
in the ore decreases the prices paid for
the Hill ore drop very sharply. Below
a certain percentage not stated it is said
that the steel trust need not mine the
ore.
1.-The statement was made in Wall street
yesterday that the Republic Iron and
Steel company, which Is deficient In It's
northern ore holdings, as compared with
the Cambria Steel company, the Snyder
interests and Jones e. Laughlin, decided
to increase its reserves, although the Ten
nessee Coal and Iron company, with which
it is allied, Is supposed to possess mex
haustible supplies of southern iron ore
This ore is of low grade also, but its
supplies of coal and ore are so near each
other that the expense of manufacturing
steel and iron, even with the low grade
ore, is comparatively low.
IN. l.. Potter has been the holder of
the Alabama ore reserves acquired by
the Republic Iron and Steel for some
years"