The Birmingham age-herald., 1907-11-07
That Corporation Was Prepar- ed to Take Over Tennessee
 Regarded As Providential
Gel. A. M. SHOOK TALKS
 WITH HIGH ENTHUSIASM
Former Official of Tennessee Go. Gives Reasons Why Transfer To United States Steel Corporation Is
 Big Thing All Around.

Local interest in the United States Steel corporations purchase of con trol of the Tennessee Coal, Iron and Railroad company is unabated. The deal is discussed in industrial, finan- cial and business circles generally and the fact that the great corporation was prepared to come to the rescue of the Tennessee pool in time of severe
 financial strain is regarded as provi- dential. Every one, familiar with the progressive work of the present Ten nessee mana cement accords high credit to the company for the solid develop ment that has been under way in this district for nearly two years. But since change had to come, there seems to be great satisfaction that Ala bamas leading iron and steel company has fallen into the strongest hands in the country.
 That the steel corporation will con
 tinue the Tennessee's development on an extended scale seems to be taken
 for granted by nearly all men of the in-
 dustrial world.
 The following from the Nash vile
 Banner of Tuesday will be read with
 interest:
 Considerable interest is felt in Ma sh
 vile and throughout the south in the
 report which came from New York to
 the effect that the Tennessee Coal and
 Iron company's interests have been ac-
 quired by J. P. Morgan and that he
 will pass the property to the United
 States Steel corporation.
 Colonel Shook Talks.
 Col. A. M. Shook, than whom no man
 in Nashville or this section is more
 thoroughly conversant with the affairs
 of the Tennessee Coal and Iron com
 pany, was asked this morning for his
 views concerning the result of the re-
 ported deal. He expressed the opinion
 the entire south, for it means more active operations on a larger scale than ever before and a greater produc tion of southern products.
 Colonel Shook remarked at the outset l that it seems rather remarkable and is a fact worthy of note that the Ten nessee Coal and Iron company is the pivotal point at this time in the finan- l cial furry which is more or less affect ing this entire country. Discussing the
 reported deal Colonel Shook said: "The taking over of the pooled stock of the Tennessee Coal and Iron com pany has resulted in two things--it has saved the Trust Company of America and the Lincoln Trust company from liquidation if not from failure, and 1t has assured the permanency of the operations of this great corporation and the resulting benefits that will accrue to the south.
 Once Apprehensive. When the United States Steel corpora. 1 tion was organized, many people in this l country were very apprehensive that ii would acquire the Tennessee Coal and | Iron company, and it's vast undeveloped ! resources. The fear then was that the l existing plants would shut down and the | further development stopped. At thai | time Bessemer steel was the rage, and | but little attention was paid to basic steel, especially for rails. The fact that | the south had no Bessemer ores gave | color to the idea that in the event the property was acquired by the United | States Steel corporation it might be l largely closed down. Since then there l has been radical change over the 1 country regarding basic rails. Today l every ra/lroad engineer in the country wants basic rails, and they are willing | to pay a premium for them. The fact | that the southern makes as good 1 basic rails as any that can be made ir ] the world. and the further fact that only | large, well equipped and practically fin l ished plants for the manufacture of basic 1 rails are located at Ensley, Ala, makes | it certain that the plant will not only | be run to it's capacity but will be f.rthei l increased and developed by the new 1 owners
 l Colonel Shook believes that this dea i will be a great boon not only for Bir | mngham. but for the entire south. Ht | believes that the deal not only saved l the two trust companies named, but pos
 sibly saved allied financial interests al well.
 Price of Steel.
 l Colonel Shook was asked what effec | this deal will likely have on the price
 of steel. Tn reply he said:
 1 ''The acquisition of this property by tn, l United States Steel corporation gives i | such predominating influence and powei | that it will be able to absolutely contro 1 and fix the prices of all steel and iror l products of this country. In the acuuisi | 1 Steel corporation gets practically 10000 | acres of coal and iron ore lands, r bias
 furnaces. one rolling mill. and a large
 well equipped basic, open hearth stee | plant with a present capacity of abou 1 1900 tons per day which is being largely
 increased by additions now we'll unde 1 way and a splendid. up-to-date rail mill l This is exclusive of the property of tn, l Republic Iron and Steel company which | If it goes in. and is added to the prop | erty of the Tennessee Coal and Iron com | pany, will give three additional bias furnaces two rolling mills and e0000 acre, | of additional coal and ore lands. Prac | tically all of this is in Jefferson and l surrounding Alabama counties with Bir | mngham as the center.''
 1 What special interest is taken in thi, l deal in Nashville Colonel Shook?" Nashville has a direct interest be- cause this is the leading industrial in | stitution in the south and southwest, replied Colonel Shook. Its pay roll. | amount to more than c1.0O0,O00 per montl | and, as it's products are all produced | from the raw material of the south, this | enormous pay roll is as absolutely ere | ated wealth as if it had been dug from +ha oro,,nd in tha 9hapn of gold ntIg.