The Birmingham age-herald., 1907-12-14

rle attended the meeting. Chief among
 these was E. T. Schuler, vice president of the Southern Steel Capt. J. M Elliot, Jr., gentleman identified with the com
 pany; o. R. Hood, a prominent attor-
 ney; Alto " Lee, Jr., and others. There
 was representatives, too, of the receivers
 of the Southern Steers Georgia proper
 ties.
 What Happens Next. What the next step will be in the case
 of the bankrupt concern is d problem.
 There was no suggestion as to a prob-
 able course in the report of the re-
 ceivers.
 It was rumored yesterday that there
 will be meeting of the creditors of the
 Southern Steel, and that the appoint
 ment of trustees will be asked for im-
 mediately. It was also considered prob
 able that some other corporation would
 take over the Southern Steel-probably
 the Sloss-S Sheffield. It was also thought
 possible that if the interests of the con
 cerns were placed on sale the several
 companies forming the whole might buy
 their respective properties and operate
 them single handed However, all this Is
 a matter of speculation
 Colonel Bush stated yesterday that in
 New York recently he had interviews
 with prominent stockholders and bond-
 holders of the concern, and that 1t was
 their desire and intention to reorganize
 on a firm footing; that they regretted the
 loss sustained by the creditors and hoped
 to reach an agreemnt equitable to all, Colonel Bush added that how this would
 be done, and when, was unknown.
 Colonel Bush stated the regret of the
 receivers that they had been unable to operate the plants of the concern, and gave, among many, these reasons for their inability to do so: An acute money market prevented the collection of sales, there was inability to recover the cost or production; financial stress caused a postponement of delivery, and a general cancellation of orders there was a eer- tain physical impairment in some of the plants and q lack of cash to improve them; there was ill-adjustment between the products of the furnaces and steel
 plants and between the output of the steel plants and the rod mills Each plant of the company was dealt with in detail After brief introduction, the report
 tabulated the properties of the Southern
 Steel of which the receivers took posses sion as follows:
 Furnace plant and steel mill at Alabama City; furnace plant at Trussyille; Altoona coal mines Graves coal mines; Virginia City coal mines; wire and rod mills at Ensey; Spencer rock quarry near Boyles; Crudup and Portersville red ore mines
 near Attalla: Gaylesville ore mines at Gaylesville; Labuco coal mines in Walker county which are in a state of develop ment but at which no coal has been mined.
 The report then details the efforts of the
 receivers to operate these plants, and
 the reasons for the shutting down of
 each, as narrated above.
 On taking charge of the company the
 receivers found in available cash only
 SS361. 73. There was about s2l0,cOV in re-
 ceivable accounts of which amount SSl,-
 sS3.3S has been collected In addition
 there was iron. steel billets and finished
 products, making a total valuation of
 about S345,O0O The commissary supplies
 were used in meeting the pay rolls. The
 receivers encountered in the way of pre-
 ferred liabilities-salaries, pay rolls, com
 missary checks and unpaid taxes-$115.-
 3763S. For salaries and in the operation
 of plants the receivers have paid about
 $126,000.
 Organizing the Corporation.
 The records as per the accountants
 report show that on December 4, 1905, the
 Alabama Steel and Wire company and the Underwood Coal and Iron company were consolidated under the name of the South
 ern Steel company with capital of
 Si6,0OO GOO, of which S6,OO0,000 was preferred
 
 portioned as follows:
 Alabama Steel and Wire com ! pany, preferred ..................$ 4,125,000 Alabama Steel and Wire con- pany, common .................. b,Sio,0O0 Underwood Coal and Iron com pany, preferred .:..... .......... 1,S75,Oo0 Underwood Coal and Iron com pany, common .......... ........ 3,l2o,OOO Total s16 00O, ,OOO On September 1 1906, the capital stock of l the Southern Steel company was in- 1 creased $9,000,000, of which 4,000O00 was I preferred and S5.O00000 was common stock. 1 This $9,000,0O0 of stock was paid in the | purchase of the capital stock of the 1 Laeey-Buek Iron company, amounting to
 s750,0OO, and the Chattanooga Coal and Iron company, amounting to $500,O0o, mak- 1 ing a total of $1250,000.
 1 On October 1, 1906, the Southern Steel I company purchased the capital stock of | the Georgia Steel company, amounting to 1 $1, 100000, for $520,0O0 paying S50,000 cash and giving their notes for $470,000, secured | by second mortgage on the Georgia prop l critics. One hundred thousand dollars of l the purchase notes has been paid, leaving l $S70,000 due. The notes due and unpaid ma tured November l and December l, 1901. | These notes are for s10,000 each and pay l able monthly.
 The Inventories. 1 A detailed statement of inventories will l be found in statements No. 16 and 17 of | the accountants report. These inven- l tories, as shown by the books, are S1, ,699,- 1 214.Sd: as corrected, $94S,0S6. .21, a decrease 1 of $751 ,l2S 59. This depreciation in the in-
 yentores occurred chiefly at the Ensley
 and Gadsden plants, these two plants l showing a deficit of $6S2, 29695 The bal
 ance is distributed at the different plants varying in amount from $500 to about l $l5000, aggregating s43.202.4 Al. The ac- l counts receivable, as shown by the books | $S52, ,2o5; as corrected. s230 1898. GA; decrease 1 of $l21 ,S55 36. Bills rec aivablc, as shown l by the books, sl2,s24.99; as valued by ac- l -valueless--decrease, $12,S24. Un- l paid Alabama taxes. as shown by the 1 books, s9193.74; as corrected, S19,169. IA. l Total decrease in inventories, accounts | receivable and bills receivable, $SS5, ,S0S. .9i 1 In this same statement is an account | against Kean Van Cortlandt X Co., for | Sl65,2SO or. shown to be unexpended bal | ance of proceeds of bonds and collateral | trust notes. This statement is referred l to as it is in dispute, and is subject to fu- l ture adjustment. inasmuch IS the state- | ment also shows that the company was | indebted to Messrs. Van Cortlandt & Co., in the sum of Sl7O,9S5.69 on another ac- | count.
 Bonded Indebtedness. l The Southern Steel company issued s3.- | oOoooo per cent gold bonds. interest pay