The Birmingham age-herald., 1907-11-01

Coal company, as those pIoptiueS N'N been taken over without any working cap ital but at the time the firm of kean Van Cortlandt & Co. had promised that they would provide the necessary capital so that the purchase of those properties would not in any way reduce the working capital of the original Southern Stee1 company. which wss ample for the needs of that opmpany, and the Georgia prop erty was then acquired. and over s5oo.ooo expended, all of which had to be paid by the Southern Steel company, as Kean Van Cort1andt x Co. failed and refused to keep their agreement to provide the funds and the amount that has been expended was not sufficient to properly develop the property in order for 1t to carry it's own burden. and this property has there fore been drag and source of expense to the Southern Steel company On account of these failed agreements to furnish and provide funds it has hampered the man agement and prevented successful opera tions.
 March Was Profitable Month.
 As a result of past errors many changes were brought about in February. and as a consequence. March was very profitable month, as were the following months, and the company seemed on prosperous footing, and would have con tnued so, lad 1t not been for incorrect accounting by the expert accountants forced on the company by Kean Van Cort1sndt & Co, thus practically nullify- Ing the good results being obtained and doing additional injury by sending out incorrect statements and reports unbe- known to the management. and thereby shattering the hitherto good credit of the company at time when 1t was most needed.
 Written contracts, as well as other obligations also were not carried out by Messrs. Kean Van Cortiandt & Co. Spe cial funds on deposit with them for pay ment of certain improvements provided for by the trust agreement under which the bonds were issued are still held by them, the Southern StAel company being obliged to pay their bftis out of it's all ready depleted working capital. Other large amounts on deposit with them have not yet been applied for the purposes for which they had certified, and withdrew bonds from the trustee.
 Notwithstanding all handicaps all tho plants of the company. but one furnace. are in operatin, and every one making money above all fixed charges, but the differences and mistakes mentioned, lack of proper accounting since Mir. c. II. Schuler left the company on April 1, fall ure of Kean Van Cortlandt & Go. to carry out agreements and contracts. added to the serious labor difficulties that apply to establishing a new industry requiring a degree of skilled labor that the country does not afford, and, finally, the threat ened heavy increase in tax assessments are so extreme and unreasons bic that those who are still able. are unwilling to make any further sacrifices to save the company.
 "It is proper to add that Messrs. Oak leigh Thorne and J. D. Lacey of the Lacey-Buek Iron company and Chatta- nooga Coal and Iron company where most loyal to the new company, and gave It their hearty support
 c. E. Buck of the Lacey Buck com pany and the Chattanooga company which were acquired by the Southern Steel company, was, on the consolidation elected vice president of the Southern Steel. After giving his attention to the business of the Southern Steel company for several weeks MT. Buck became broken in health and resigned his vice presidency. He remained director. but 1t is said that he was unable, until recently, to give attention to the concern.