The Birmingham age-herald., 1913-02-12
EXPLAINS SALE OF
SOUTHERN STEEL
Dryer Says No One Pro-
tested to Him
PROCEEDS OF SALE
Declares Sale of Properties Melted so
Far as General Creditors Are Con-
cerned s52s, ,sO5.4s Over Total
Appraised Value
PROCEEDS OF SALE

Edward H. Dryer the referee in bank
ruptcy before whom the proceedings con-
cerning the Southern Iron and Steel COM
pany are pending, yesterday made the
following statement concerning the sale
of its properties and his order of con-
frmation upon which petition for a re-
view before, the judge has been filed:
'''The only persons affected in the bidding
in for 100000 of the property covered
by the mortgaged bonds are the bond
holders. who have not as yet entered the
reorganization scheme, constituting, [ am
Informed, about 2is per cent of the out
standing bonds, no one of whom have
appeared or offered any objections to the
confirmation of the sale. Notwithstand-
ing the non-appearance of the only in
terested parties, the attorney for the re-
organization committee was required in
open court to promise that all such minor
ity bondholders and such unsecured cred
itors as might desire to do so should be
given 30 days from February 8 to enter
into the reorganization scheme on equal
terms with all others, and that they
should receive notice to this effect from
the reorganization committee. There was
no promise or even the intimation that
il resale were made the property would
sell for more.
1.-The mortgaged bonded Indebtedness at
the date of the filing Of the bankruptcy
petition last July, amounted, with ac-
crued interest, TO approximately ss,7o0,00o
upon these properties, encumbered by
prior liens amounting approximately to
$425O 600. This part of the estate was ap-
praised by the official appraisers at 49,
612,00o. according to their sworn return
to the court. The appraisers were John
H. Adams, A. II. Carpenter and w. S.
lowell.
ut was provided in the order OF sale
and in the decree of confirmation that
the mortgage bond indebtedness should
not be proved against the general estate
of the bankrupt for a sum exceeding
30 per cent or s4350,000: and although
the bid at the sale of the properties was
only s1,000000, 1t produced. SO far un-
secured creditors are concerned $4 $50, 900
plus the outstanding membranes of
$425, 900. making the bid equivalent so far
as general creditors are concerned, to
81, 10000 for the mortgaged property. or
81, lDo,uuu UloTt ttldft It's dppTdlStQ Adlut
''The land acquired since the big mort
gage was made was bid in for $1,000 but
was bought subject to $1,000 of outstand-
ing membranes. thus making the pur-
chase price of that parcel Approximately
$1020O0. The other assets sold for $505. $50
and the total sum produced at the sale
is equivalent so far as general creditors
are concerned to s5425,000. The total
value as shown by the appraiser report
was 1885, 1874 81. This shows that the
sale netted sum of s529,S0 40 over the
total appraised value.
HAD any one of the bondholders af-
fected by the bid of 100000 for the
covered by the big mortgage APP
peared and objected to confirmation, I
would not have confirmed the sale; but
the only parties who did object were
few unsecured creditors. as to whom the
property, in the administration of the
estate, will be reckoned as having brought
more than s10oo,0o0 than the figures given
in the appraisers report"