The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-04-30
Substantial Gains Are Shown
in Fig Iron, Coal and
Coke Production
SYSTEM OF ACCOUNTING
IS CHANGED FOR BETTER
Toppins's Report Is seIf-Analyzlns and
the Company Is Now on an Invest
ment Rather Than speeus
Iative Basis.

Although the annual meeting of the
Tennessee Coal, Iron and Railroad COM
pany is not held until May 90 the execu-
tive committee, of which John A Top
ping Is chairman, has issued its annual
report up to December 81, 1906, and has
had 1t printed in pamphlet form for dis
tribution among the stockholders. Fea-
lures of the report include a change in
the company's system. of bookkeeping, adj
ditions to property, new expenditures and
increased production.
The present management did not take
actual charge of operations until the
spring of last year, but pig iron produe-
ton shows an increase of 112,S51 tons, or
about 20 per cent, over 1905, while coal
and coke show quite an appreciable in
crease. Following are extracts from the
report:
Extracts From Report.
The income account for the year 1906
you will observe, reflects a radical change
in accounting policy, both in respect to
providing more literally than heretofore
for provisional funds, the necessary re-
placements and depreciation to plant and
machinery, depletion of mineral lands and
by direct charges to costs for repairs and
maintenance. Under these headings your
net income has absorbed the following in
creased charges, as compared to the year
1906:
Fire and casualty fund ........$ so, 2b3. "A
Maintenance and repairs ......... 266, 121. rs
Depreciation to machinery and
replacement accounts .......... 145, 5S7 2S
S Total ........................... $46S, 962 As
Exclusive of this amount income was
charged with $77O,677.53 for depreciation
and renewals.
After making these liberal provisions
for strengthening your properties, the
gross income shows an increase of $780,
02O.5O, and your net income $59053.45 in
excess of the preceding year, and your
total income the greatest in the history
of your company except for the year 1903
when present earnings were exceeded by
$l56, 1858, differences in accounting meth
DDS not considered.
After providing for all necessary funds.
the payment of all fixed charges and set
ting aside per cent on the preferred and
per cent on the common capital stock
the net amount carried to surplus for
the year was S126, SS102
"As compared to previous years, your
earnings may be favorably regarded, with
operating profits in excess of 20 per cent
on your volume of business. This resGlt
considering the almost unlimited tonnage
of your mineral reserves and their great
potential value, should suggest no delay
in providing the necessary facilities to
meet your income opportunity. Your ex-
ecutive committee, recognizing the made
quacy of your present facilities, has au-
thorized substantial expenditures to in
crease your volume of business and in
come but further expenditures could be
advantageously made"
THE financial statement shows your
company to be in a sound condition with
current assets of $1,000 1900 in excess of
your current liabilities. Ample provision
has been made for all necessary provi-
sional funds, and the first public audit
of your books has been made by the firm
of Jones. Caesar, Dickinson, Wilmot &
Co., certified public accountants, whose
certificate is herewith submitted.
Inventory.
"At the close of your fiscal year end
ing December 81, 1906, materials in in
ventory, due to lack of proper Transport
tation facilities and consequent ina bility
to move to market products sold, indi-
Gates excessive stocks and adversely af-
fected earnings and volume of business.