The Birmingham age-herald., 1907-11-06
ANOTHER MEETING
 HELD BY FINANCIERS
Transfer of Control of Tennessee
 Company Is Completed in New York.

New York, November 5.-(Special)- Bankers. trust company presidents and officers of the United States Steel cor poration and the Tennessee Coal, Iron and Railroad company were in conference from early morning until late at night today, and it appears certain that the three important obstacles to recovery from present financial conditions have been removed. One of them, the comple-- ton of the transaction for transfer of a controlling interest in the Tennessee coal, Iron and Railroad company to the United States Steel corporation, on which 1t is understood the others hinged, was arranged in the early evening.
 The reason that the solution of the difficulties which have been under dis cussion since Saturday hinged princi- pally upon the completion of the negotia- tions for the Tennessee Coal, Iron and railroad company-Steel corporation trans- action was that loans in excess of S10,- 100000, secured by the Tennessee Coal, Iron and Railroad compsny stock. are held by various financial insSirstionss fif cluding the Trust coznpa Tennessee Coal. Iron an,
 pany stock is unmarkel
 quantities at present, a.
 that if some quick asset
 cured in exchange for
 Coal, Iron and Railroad
 the Trust company of Ann
 mediately convert the loan
 thus greatly strengthen its
 It was on these general t.
 negotiations between holders
 Coal. Iron and Railroad e and the Steel corporation
 pleted.
 According to the terms of
 ton, as officially announce
 corporation takes over $l5,0ooA
 more than half of the capit,
 the Tennessee Coal, Iron ant company, and gives in exchang' in sinking fund per cent bol bonds are readily marketable, s Monday between S5 and S6, and stitution of these bonds as colla loans will permit prompt conver the loans into cash.
 The Steel corporation will underta 0 new financing oy way of completlm deal The bonds which will be given ,h exchange for Tennessee Coal, Iron and Railroad company stock are part of an issue of $250,000 900 second mortgage sink ing fund collateral trust per cent bonds. The issue was created in 1903, at which time Sl500OO,000 of preferred stock was
 
 There are now outstanding $l65,000,0o0 of the bonds with s50.000,000 held applic- able for exchange for preferred stock and s30 100000 held in the treasury of the com- pany as an asset. either for sale for cash or for exchange for other securities. The s1500OO00 bonds will be exchanged for Tennessee Coal, Iron and Railroad com- pany stock, dollar for dollar, one, bond for every 10 shares of stock. The bonds are
 he ovlxa at a, uthi were the closing bid and asked price yes- terday.
 At present market prices the control of Tennessee Coal, Iron and Railroad company is acquired for the equal amount ,S about $25 a share or total of s17,-
 1000. In January last the stock of Ten
 essee Coal, Iron and Railroad company was held at sIoJ in the stock market, at which price the stock sold yesterday would have brought $24,Oo0,0o0, all but d million and half dollars less than twice as much, however steel sinking fund 5's were then selling at a much higher price in the market, so that the sale of the stock though a bargain, is not as cheap as it looks.
 ! The great advantage to the sellers of the stock of having steel bonds instead of Tennessee Coal, Iron and Railroad company stock is that there is a good market Tor Sleel JULIUS, WutTtdS IL WOdlu he impossible to secure anything like a fair price for very large amount of Tennessee Coal, Iron and Railroad com- pany stock thrown upon the market. The hanks holding Tennessee Coal, Iron and Railroad company stock as collateral will thus be enabled on the transfer of the stock for steel bonds to obtain speedy liouidation of the loans.
 It was not stated just which members of the Tennessee Coal, Iron and Rail- road company syndicate sold their hold ings. It was reported, however, that the sellers included among others: Grant F. schley. Oakleigh Thorne H. S. Black. MI Leon Brady and B. J. Berwin, and very likely a large number of others.
 John W. Gates knew nothing about the transaction. he said. on his arrival here from Europe today, and it was nowhere believed that his stock was included in that which was exchanged.