The Birmingham age-herald., 1907-11-01
SCHILLER PUTS ALL
 BLAME ON BANK FIRM
Failed to Supply Southern
 Steel Funds As Promised
COMPANY MAKING MONEY
Despite Many Handicaps Last March Was Profitable, as Has Been Each Succeeding Month Since
 That Time.

The wire and nail mill of the South ern Steel company and other plants of that company are being operated un- der the ten days receivership. At the expiration of the receivership trustees will be appointed by the unsecured creditors and it is believed these trus- tees will get the company on it's feet within reasonable time.
 The following review of the South ern situation is from the New York Times:
 George II. Sehuler, a director and for mer vice president and Urea surer of the Southern Steel company, against which petition in involuntary bankruptcy was filed on Thursday in the United States court at Birmingham. Ala. has issued a statement to the stockholders. in which he puts the blame for the diff faculties of the concern on the failure to provide working capital for tho Lacey Buck Iron company and the Chattanooga Iron and Coal company, which were taken over last october.
 We bought the physical properties of these companies" he said yesterday, but did not raise any money to care for them. The working capital had to come out of the Southern Steel com pany."
 MT. Schuler was vice president of the Southern Steel company until last oc- tober, and treaturer till April. He re- signed the former office on account of the rganization which took place then, when Moses Taylor of the firm of Kean. Van Cortland & Co. was made president. He disagrees with the ac- count of the appointment of MT. Taylor, for which Hamilton r. Kean, his part ner in the firm of Kean, Van Cortland & Co.,, has been quoted.
 Takes Issue With kean.
 "It is not true" said MT. Schuler yesterday, that MT. Taylor was elect ed to the presidency year ago as the result of fight between two factions in the company, and it was understood at the time that MT. Taylor was only to fill the office of president tempor- arily.'
 AS matter of fact last October Mir Taylor expressed the desire to be pres ident and was elected. At that time the Southern Steel company was taking over the Lacey Buck Iron company and the Chattanooga Coal and Iron com pany The directorate was to be in creased, and Oakleigh Thorne J. D.. Lacey and c. E. Buck, who owned the control of these companies and had been paid in shares and cash. were placed on the board, and c. P. Perrin was taken in as an expert.
 My brother. Everett Schuler, was president up to that time, and I was vice president and treasurer. l was in favor of Mr. Taylor being made presi- dent and voted and worked for it. My brother willingly made way for him, and l also resigned the vice presidency to give room for him and C. E. Buck
 q remained treasurer, but found that I could not agree with the policy of the new president. He took active control of the property and dictated its method of business. In April I gave mp my of ficial position. I am still a director but since that time have taken no active share in the management of the com- pany."
 The bonded indebtedness of the South ern Steel company is sS,OOO,oO0. of tie Chattanooga Coal and Iron company sGOo.- 00O of the Lacey Buck company s30,0CD, and of the Gadsden Steel company a,475,- 000
 In his formal address to the sharehold- CTS MT. Schuler says:
 Address To Shareholders.
 ''The difficulties of the Southern Steel company date from the consolidation with the Lacey Buck Iron company and tho Chattanooga Iron and Coal company in October of last year.. At this time the { old directors of the Alabama Steel and Wire company lost that full control of af- fairs which they had previously exer- cised, and things began to go wrong. First. Moses Taylor of Kean van cort- landt & Co. and president of our com pany, led Mr. Buck. who had charge of the blast furnaces and mines under the new regime, to go on with his plans for improvements on a large scale. by prom sng that kean Van Cortlandt X Co. would provide all necessary funds. Thus, before the authority of the new board of directors was obtained expenditures 10 the amount of nearly $1.0o0.0oo were con tracted for. The funds were not proVid- ed as promised, and the Southern Steel company had to pay the bills When che bills began to come In. there were viz orous protests, leading to dissensionI in the management and some who could disposed of their interests and left the company.
 "When the purchase of the Georgia Coal and Iron company was first by MT. Moses Taylor, q majority of the board of directors, including all of the practical members. were opposed to the purchase and so expressed themselves. unless Mir. Taylor or his firm CKean Van Cortandt & Co.) would provide the nee essary funds for not only acquiring the property. but also for developing and operating 1t, SO that no funds of the southern Steel company would be re- aulred for that purpose and at tie same time the active members Insisted that inc former promises of kean Van Cort landt & Co. be kept. in reference to fur nishing the necessary working capital tf