The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-14
SLOSS COMPANY HAS
$2,723,322 SURPLUS
Three Directors Are Dropped
From the Board
MABEN SUBMITS REPORTS
Shows Extensive Improvements Made
During the Year, All of Which Are
Paid for Out of the COM
pany's Earnings.

The Sloss-Sheffield Steel and Iron COM
pany held its annual stockholders meet
ing in Jersey City yesterday. President
j. c. Maben submitted his report, show
ing the operations of the company for the
fiscal year ending November 80. After
paying dividends per cent on the pre-
ferred stock and per cent on the conn
mon--the years surplus was sSl,S43.29.
This, added to the surplus of November
80, 1906, makes a total surplus of $2,I23,-
S2210
A resolution was adopted which re-
duces the board of directors from fifteen
to twelve. The directors dropped were
Walter G. Oakman, Moses Taylor and Il.
b. VanCortland. The other members of
the board were reelected.
President Mabens report follows;
To the Stockholders of the Sloss-Shetfeld
Steel and Iron Company:
Gentlemen-In our last annual report
reference was made to the unprecedented
production and consumption of iron in
this country, when the production was
thought to be about the limit of our anil
ity to produce. The prodrot'0@ for the
past year, however, shows still Iurtnef
increase of 2,900,O 600 gross tons over that
of the previous year. and still the con-
sumptive capacity at work seems TO haNe
increased even greater than the produc-
ton, as evidenced by the sharp advance
in prices, the premium paid for spot iron
and the Importation of a considerable
amo.nt of iron from Europe. The great
increase in production in 1906 over that
of 1904 lover 5000, 900 tons) prevented any
advance in prices in 1905 until the last
two months of the year, when an ad-
vance of 81 per ton was established Dur
ing last year, however, with still,
further production of over 2,SD,Wo tons,
the supply was not equal to the demand
and the price of No. iron at Birming-
ham adyssced from $3.50 in June and
July to $3.50 by September, which price
continued to be maintained for deliveries
during the first half of 1907, and in De-
cember the price was further advanced
to $40 for deliveries during the third ana
fourth quarters of 1907, while IRON Tor
prompt delivery brought from 50 to 81 per
ton more
Alabama did not share proporlonately
in the great increase in the production OF
iron, having produced only about 'o"o
tons more than in 1903. when strike OF
the miners at the coal mines of all the
furnace companies but one in the BIZ
mingham district more seriously inter-
ferred with the operation of the furnaces
than during last year. The fallure OF
Alabama to show a proportionate Increase
in production must be attributed some
what to the scarcity of labor but more
largely to the failure of some or the rail-
roads to handle the raw material Tor the
furnaces. which we had occasion to refer
to in our last report. The labor situation
was somewhat improved during the year,
hut some of the railroads seemed less able
to handle their business than during the
previous year and your furnaces were
frequently banked for from few hours
to a day for the want of coke when
trainloads of II were standing on sldings
within a few hours run of the furnaces.
which, despite our every effort, 1t seemed
impossible to get placed in time. This OF
course. decreased your output OF lron'
added TO the cost and produced pad WORK
ing of the furnaces.
The problem of handling the furnace
material in this state, as well as other
freights. is a serious one. for whlIe tne
railroads are beginning to realize that ad-
ditional facilities must be provided, ad-
verse Legislation. both national and state.
is rendering II difficult for the railroad
companies to secure the money necessary
to make these improvements.
The furnaces of your company produced
q NM
OUTPUT of coal fell off 10000 tons. and
that of coke 10000 tons. which must be
attributed entirely to the causes before
enumerated
The profits for the year were further
curtailed by the failure to secure cars
for the shipment of pig iron, which forced
us to carry over into the present year
a large tonnage.
Altogether. last year was a most try
A.o
those in the iron and steel business in
the SOUTH and 1t would seem that the
south at least was undertaking to ham
die more business than can be done profit-
ably A striking illustration OF this Is the
heavy increase in gross earnings OF many
of the railroads, and the large decrease
i'm net earnings. Your company earned
about 100000 less than in 1905, although
the delivery price of iron averaged 80
cents ton more, which was due to the
higher cost, caused to great extent
by our inability to get the railroad SER
vice which we should have had The
marked advance in the price of iron did
rot take place until about the close of
your fiscal year. and as your company
had sold large amounts of iron for fu-
ture delivery at prices prevailing dur
ing the earlier months of the year, the
average price OF our deliveries during the
The strike of our coal miners which
continued for over two years. was Off
cially declared off last August, and the
mines are now being operated on the
open shop basis
Notwithstanding the adverse conditions
prevailing, the net earnings of your COM
pany during the year, after deducting
for depreciation, charging off to cost
fair proportion of the amounts expended
for improvements to your plants. very
considerable amount to cover eXtraordi-
nary expenses, growing out OF the strike
Of your miners, and other things which
should not occur again. were sufficient
to pay the full dividends on both the
preferred and common stocks and carry
a small amount to surplus account, which.
as will be seen by statement attached, is
row s2,723. 1922. The working capital shows
a decreas Sc of little over 100000, which
must be accounted for by the large
amounts spent during the year in open
ing new coal and ore mines, Cs1S3,000 hav-
ing been spent on one coal mine), inn
proving your furnaces and providing addi-
tional equipment in the way OF steam
shovels, dinkey locomotives and large