The Birmingham age-herald., 1909-03-11

bhADD, THURSDAY, MAh' made up at the cost of production. now stands at S2.os5.562. an increase for the year of at3,oo0. Profit and loss account at the end of the year stood at sS,2l6,- o0O a gain for the year.
 Blast Furnaces.
 Nos. l, and furnaces had been put out of blast a few days before the close Of the previous fiscal year. November, !sOl. Nos l and were started up again m May and remained in blast throughout the remainder of the year No furnace remained idle the balance of the year, and Is now undergoing extensive repairs. in eluding the erection of three new stoves, new bosh jacket, cooling plate, etc, at an estimated cost of s12o,GO0
 Reference was made in the last annual report to the repairs and additions which were being made to No 1 furnace These were completed late in the previous year, but owing to the condition of the iron market the furnace was not put in blast until February of last year. It con tinued in blast throughout the rest of the year.
 The Philadelphia furnace was put out of commission late in April of the fiscal year with view of decreasing our pro- duction, and remained idle throughout the year. A new blowing engine was added to the equipment during the year
 The Hattie Ensley furnace was in blast continuously throughout the year, and made an unusually good record.
 The Lady Ensley furnace was at work throughout the year, except for four months, when Its top was being refined.
 With the exception of No. 3 furnace, which, as has been stated. is undergoing t4r o1a working condition. The fact that with only 57 per cent of your furnace capacity in blast during the year you produced within 15.0Q tons as much iron as was produced in the previous year, should be taken as some evidence of this The time furnaces were out of blast during the year aggregated something over 36 months, or equal to three furnaces for a year.
 Coal Mines.
 Another adverse condition with which your company, in common with others of the state, had to contend during the past year. was strike among it's coal miners. which, while lasting but about two months, was fierce and many outrages were committed and proved expensive to both sides.
 All but one of the furnace companies of the district, including yours, had, after a contest lasting over two years, succeeded in placing their mines on non-union basis, and for two years con ditions had been satisfactory to both op- orators and miners. The operators of commercial coal mines, however, had con- tinued to make contracts with the United Mine Workers. The demands of the union becoming too burdensome, the commercial operators, almost without exception, declined to renew the contracts last July A.-4lr of the men from the furnace companies mines joining in the strike, some of them through fear of bodily harm. New men had to be brought in to take the places of the strikers, which took time and money. The strike was declared off in September, and now about 90 per cent of the mines of the state are working on the open-shop basis. We succeeded in keep ing in blast such of our furnaces as were working when the strike was or dered.
 Your coal mines have a producing ca pacity in excess of all the requirements for company purposes and for filling con- tracts with the railroads for steam coal, and notwithstanding several of our mines were closed down when the furnaces were put out of blast, the first of the year, and not reopened until September. there not , being a sufficient demand for coal to J months strike, the output was not great ly below that of 1907 and in excess of the 1906 output.
 No important new work was undertaken at any of your coal mines during the past year, as large sums had been expended in improvements at your principal mines during the two previous years. Such inn provements as were made were generally charged off on the cost sheets. There was a material reduction in the average cost of the coal produced last year as com pared with the cost of the previous year.
 Ore Mines.
 Irondale ore mine and No. ? slope of Sloss mines were closed down just a day or two before the close of the previous fiscal year, as so many furnaces being stopped and the stock houses full, We could make no use of the ore No. slope of Sloss mines was reopened in February but the 1rondale mine remained closed down until october, or two months before the close of the fiscal year
 Since the first of this year we have be- gun on another slope at Irondale mine which will probably be producing some ore in the next 9e days. The ore from this mine is proving very satisfactory, both as to quality and cost of produc- ton.
 A long drouth lasting 90 days caused a shortage of water at your Russellville brown ore mines, and We were forced for a considerable time to suspend operation of three of the large washers, but we were not greatly inconvenienced as our stock houses were well filled and some of our furnaces being idle We had other sources from which to draw ore. The pro- ducrion of brown ore for the year, not withstanding the enforced stoppage of the washers as mentioned, shows an increase of 43,000 tons over 1907, with a decrease in cost of 20 cents a ton.
 For more detailed information you are referred to the usual annual statements annexed hereto.
 All of which is respectfully submitted by order of the board of directors.
 J. c. MABEN, President. Birmingham, Ala, March, 1909. Attached to President Maben's report are the balance sheet and other financial statements.
 The comparative statement showing gross receipts expenditures and net sur plus for years ending November 3O 1907 and 1908 is as follows:
 1903. 1907. Decrease. Gross sales and
 earnings ... s5.5s6,s11 $6,d5i,sos sl,1l74s2 Operating ex-
 penses, taxes
 and mainte-
 nance ........ 4241,o56 4,Ssl,457 5sO,4o Net earnings. $1, ,295. .755 s1,s22,s s46 521Osl Fixed charges. 210,O0o 21o,0oo ........ Balance ......s1, ,Os5.755 S,6i2,s46 52709l