The Birmingham age-herald., 1913-02-19
FINAL REPORT OF
MR.. BOWRON ON
SOUTHERN STEEL
Total Credit of $6O,357.43.
Many improvements Made
During the Past
Six Months

The final report of James Bowron as
trustee of the Southern Iron and Steel
company was made yesterday to e. II.
Dryer, referee in bankruptcy. The report
is no doubt very gratifying to the court
and the officials of the company as II
discioses a most satisfactory condition., 1t
is asserted. The net earnings for the past
month were .2l, which with a bal
ance of profit previously brought forward,
leaves total credit of $60,357.4S.
The report in part follows:
i hand you herewith statement showing
results Of the operation of this business
from January 1 to 81 inclusive. | am glad
to draw your attention to the fact that
my operations resulted in profit of S39,
S2S2, and after allowing for the items of
idle expense. one months provision of tax
es and fire insurance, and the interest on
secured loans of the bankrupt still contin-
ued and extended by me, all of which
items would have been running against
the estate anyhow even if not operating,
there remains a net profit for the month
ss6o32.2 81, which with the balance of profit
previously brought forward, leaves a to-
tai on January 81 of S60.357. 49,
On January 81 in pursuance Of the order
of sale made In this cause [ sold the
property of the bankrupt as already sep
arately reported to your honor, and from
February I have continued to conduct
and I am now conducting the business as
directed by the order of sale for account
and benefit of the buyers. As the period
is exactly one-half a year from the date
Of my appointment as receiver, I beg to
point out the following result of the ad-
ministration of tile receiver and trustee:
l. The interests of the bondholders
have been cared fori The blast fur
mace which unexpectedly developed an
injured lining has been completely re-
lined at an expense of $4,000. and is
now in proper order TO run until esti-
mated date of July or August, 1915.
The open hearth furnaces have had
their annual repair and oyerhauling
and are in shape to operate until the
summer of 1913.
A new poultry and garden fence ma
chine has been completed. taken out
of the hands of the makers, installed
at the works, and put into profitable
operation
The outlays involved in the i'm
provements may be enumerated as fol-
lows:
Additions to property ........$16, Sci 81
Extraordinary repairs ....... 2O,954.0
Annual repairs ....s.......,. S,9lS.ll
Total $46,T2S. 90
Notwithstanding these heavy dis.
bursements which have been charged
10 the bondholders estate, l have been
crediting the bondholders with five
cents per ton for coal and ore taken
out of the ground and with the usual
provisional funds or allowances for re-
pairs and depreciation which have been
absorbed in my operating costs, reduc-
ing the debit on the general balance
sheet to the nominal figure of $s,S45.33,
which is materially less than the i'm
provement in refining the blast furnace
alone, thus leaving the bondholders
estate materially benefited by the addi-
tions above recited.
2 The unsecured creditors have not
suffered as a result of the administra-
tion of the estate which has, as above
described, been for the benefit of the
bondholders. On August /, the date of
the receivership. there were outstanding
secured notes of the bankrupt aggre-
eating $472, ,s66.61, to secure which creditors
held by way of collateral the most valu-
able portions of the manufactured and
semi finished goods of the bankrupt of
an estimated aggregate value of not less
than $6o0000, Failure TO secure extensions
of these loans would have resulted in
The sacrifice of the collateral to tho
great injury of the unsecured creditors.
but on February the amount of secured
loans had been reduced to Sl0l $50, each
note maturing having been either paid
on the date of its maturity, or extended
with the consent to the holder, all in
terest having been punctually paid, and
the collateral as the notes have been
padi from time to time has been sur
renedred and sold for the benefit of the
estate. All sales so made have been at
full market prices without any sacrifice.
3. These favorable results have been
accomplished by the maintenance of the
business as a current going concern, pre-
serving the intangible value OF its or
ganization and its business connection
with it's clstomers All wages which had
accrued prior to the bankruptcy were
paid on the usual pay days and not a
single man employed had to wait one day
longer for his money as a result of the
bankruptcy, and in this connection l re-
port that no department of the business
has ever been closed down for a single
day as the result either of legal or finan-
cial complications.
L. All this has been accomplished and
Notwithstanding the difficulties incident
to taking over a concern without money
and without credit and having some dir-
ficulty in obtaining suitable supplies of
certain materials, and having to operate
with plants which had been run down
by reason of their poverty to an extreme
point, the operations have been more than
self sustaining and wind up for the six
months period. after providing the re-
serve fund of $7,S47i9 for taxes and in
surance in the final balance the credit Of
profit and loss account stands $50 257 49,
out of which compensation has yet to be
paid TO the referee. receiver, trustee and
the attorneys in the case Respectfully
submitted, JAMES BOWRON,
Trustee.