The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-08-02
Creditors and Others Now
Believe Company Will
Get on Its Feet
ALL PROPERTIES TO
OPERATE AS USUAL
With Good Demand for Products, No
Change Whatever Will Be Made
in the Direction of Com
pany's Affairs

connection with the Southern Iron and
Steel company, President James Bow
ron was yesterday appointed receiver
for that concern.
The appointment was made at 1855
o'clock by Judge William L Grub of
the federal court. The action followed
the request of Walker Percy of Percy,
Benners & Burr. attorneys for the re-
ceiver, and the reorganization commit
tee; Whitaker & Nesbit, attorneys for
the Southern Iron and Steel company,
and Max j. Winkler of Ullman & Win
kler. attorneys for the petitioners in
bankruptcy The petition was filed
several days ago by three small cred
itors.
At his office yesterday Mr.. Bowron
requested the statement made without
qualification that every plant and OPP
Grafton would continue to run without
any loss of time to the workmen and
he said that money would be secured
to pay them promptly and in full Mr..
Bowron wants that assertion made
plain, unqualifedly and with force.
That was the dominating sentiment of
short statement he gave to the press
late yesterday afternoon.
Came as General Surprise
The request of the attorneys came
as a surprise to the Industrial inter
ests here and as we'll to tho federal
court officials. 1t was well known, how
ever, that the receivership was newt
able and it was generally thought that
Mr.. Bowron would most likely be APP
pointed next Monday when the hearing
was scheduled to come up. That gem
era1 information was the direct cause
of the sudden move on the part of the
legal representatives. 1t developed that
candidates" for the receivership were
springing up with startling frequency.
Influences were being brought to bear
on various creditors to recommend this
man or the other, all to be settled
Monday. Finding that situation true,
the attorneys decided upon the quicker
action and made the request to Judge
Grubb yesterday. There was some eff
fort put forth to have a co-receiver
appointed However, that was aban-
doned when it was made plain that
Mr.. Bowron was exceptionally quail
flied to operate the plants alone as he
| has done for the past two years dur
| ing which time he has made, it Is said,
phenomenal showing for his directors,
even though the interest charges have
not been paid and some debts have
been allowed to run for long term
The appointment of Mr.. Bowron was
received with general satisfaction yes
terday. He was the choice of bondholders
owning 1887 600 worth of bonds, deben-
ture holders owning $1,200,000 worth of
those securities and the overwhelming
choice of the general creditors, who met
last Wednesday and made a recommen-
dation to Judge Grub. In making the
appointment Judge Grub pointed out that
a man skilled in operating the technical
plants was needed and that it would
handicap the proper operations to appoint
any receiver for SO short a term as
the receiver usually serves having no
technical learning and experience. There
was no objection whatever to President
Bowron.
See Daylight Ahead
| In the opinion of industrial men familiar
with the situation, and it may be said
President Bowron also, the rift In the
| clouds is discernible as result of the
appointment of a receiver. That such a
move was without question dawning has
been generally known for a number OF
months. The chief matter of speculation
was the manner in which Mr.. Bowron
has piloted the company off the reefs for
so long a time. 1t is said that the Eng
fish and Hollanders who own the stock,
and have allowed their property to drift
for two solid years have lost all. They
refused or neglected to put new money
into the company, although Cecil Gren-
fell was always hopeful, and the COM
pany defauited on interest payments hab-
itually. The heavy charges in New York
and expense accounts added to the other
| fixed charges caused no hope to be held
for the eventual safety of the company
without some such move as has been now
taken. The reorganization of the COM
pany will be rushed forward 1t Is UNI
derstood.
| The companys affairs will not be
changed by the receivership excepting
| that Receiver Bowron reports TO the fed
eral authorities rather than to his direc-
tors, as heretofore. The new plans are
fully understood, so 1t Is stated. The
! bondholders will cause the properties to
be sold and they will buy in the plants