The Birmingham age-herald., 1913-03-19

guaranteed not less than the same net
earnings to the state, and during such
months as 1t has not been earned we
have paid the guaranteed amount.
THE state has received in the treasury
the same clear profit per man from us
that it received from the Tennessee COM
pany.
after the organization was perfected
at Banner the state was earning a net
profit of from 81 to s. per man a month
more than it earned under the Tennessee
company contract until the Banner tipple
was destroyed by fire without fault on
our part, but at great expense to us.
''rhe statement that an offer of 95
cents a ton for washed coal was made
to the state at the time the contract
was made with us. is not true. The
public records will disclose no such
offer and We state that no such offer
was made. In addition to the price of
65 cents per ton paid the state this
company furnishes all rails. timbers,
spikes, new cars. worn or broken ma
chinery ard various other things nee
essary to the upkeep and operation of
the mines The total cost to us Is
about 80 cents a ton and that does
not include a royalty ON the coal which
belongs to us.
"We know that the false state
ments reflecting on us have not come
from the state officials. Our attorney
at Montgomery has informed us today
by telephone that the chief examiner,
the associate examiners there, the gov
ernors private secretary and the gov
ernor have each stated to him today
that these reports were not made or
authorized by them.
Sent Paid Checks to O'Neal
"When the governor called on us for
information about the money paid to
the convict department we promptly
sent to him by special messenger all
paid checks in our possession. When
State Examiner Wilkinson came to Bir-
mingham yesterday we offered him ac-
cess to every book, record and other
document in our possession and Of
fered him every possible aid in making
his investigation. We are willing for
chartered accountants to make COM
plete and thorough investigation and
will pay the state any amount they
report that we are due the state We
feel confident that il anything is found
to be due that the balance will be In
our favor.
aThe report that the former con-
tract was more profitable than our
contract is shown to be untrue by the
fact that exactly the same contract is
now in effect between the state and an
other mining company and under that
contract is edIHih6 Aite - Oih " ~
per man less than 1t Is earning net
per man under the Banner contract.
Can Increase Earnings
"With the completion OF the new tip
nle and washer, lately destroyed by
fire. and which is being rebuilt by us
at an expense of over 100000, 1t is
% sily possible for the state with good
management to earn net at least so
per cent more than was earned under
Tho nreyious contract. We entered into
the present contract with the state in
good faith and spent q large sum of
money building prisons and adding ma
cbinery and other equipment so that
the state could work the mines on
large scale and earn a large profit
from the convicts
"Having no representatives at the
mines except a mine surveyor, with the
state in entire control. our tipple was
burned and we have thereby incurred
an expense Of more than 100000 In
replacing it.
"We are carrying out the contract
IN good faith and tho state is making
,nucb money. We have always paid our
ohIipations and are ready to pay the
state or anyone else anything we may
owe. at.
.pPATT .Iss CONSOLIDATED COAL co.
"By G. B, MCCORMACK. President