The Birmingham age-herald., 1913-08-03
Name Will Be Changed to
Gulf States Steel
Company
MANY IMPROVEMENTS
ARE CONTEMPLATED
1t Is Hoped to Secure New Capital.
May Build Billet Plant at Gads-
den and Buy Ore Properties
in This District

city, are here engaged in winding up the
final details before the reorganization of
that concern. Mr.. Coverdale, who made
an exhaustive examination of the proper
ties and who is considered one of the best
informed experts in the country, said last
night that he thought the company would
be reorganized and placed on a permanent
basis within a short time He said the
reorganization work would be completed
before September 1 or by that time at
least, he hoped.
The reorganization plans contemplate
change of name for the company to the
Gulf States Steel company That will be
the fourth name of the company during
the past few years. 1t is hoped to secure
81 100000 new money for the new concern
which is expected to come from those in
terests that purchased the Southern Iron
and Steel and changed it to the Standard
Steel company. Reports are to the effect
that new plants will be constructed, new
ore properties purchased and the company
placed on a firm foundation.
Both Are Optimistic
Mr. Coverdale and Mr.. Stickney were
last night unwilling to go into details in
connection with their work here They
were both optimistic however and, seemed
to think that the outlook is rather bright.
With an increase in capitalization to $l5,-
100000, and contemplated developments
which will mean an expenditure of per-
haps $l0Oo,0oO, the proposed concern is to
take action as soon as possible. The erec-
tion of a steel billet plant at Gadsden is
said to be on the programme.
Among the proposed larger improve
ments are the further development of the
present steel plant and wire mills OF the
company located at Gadsden and the pur-
chase of certain ore properties in the Bir-
mingham district that are now being held
Under option. After the mill is completed
at Gadsden, should there be need of more
pig iron, the company will build its own
foundry While no statement has been
made to the effect that a furnace will be
built, 1t is denied that any old furnace
is to be purchased.
James Bowron, it is thought, will still
continue at the head Of the concern. As
president of the Standard Steel company
he is spoken of by Industrial leaders as
most successful operator
The modified plans of reorganization OF
the Standard Steel company have been
made public by President Bowron.
"The reorganization, he said will he
effective after September If our plans go
through, when the stockholders or those
holding interests are expected to make
their first payment under the plans for
mulated 1t will be known as the Gulf
States Steel company. and it's capitaliza-
tion will be $15000,O0O, fully paid in and
non-assessable There will be 155OoG
shares of stock, par value of 800 each.
"The committee in charge of the re-
organization has called for assessments
from those interested who went into the
pool to buy the properties of the Southern
Iron and Steel company. and are in the
reorganization Of the Standard Steel COM
pany now; 81, 600 is to be raised which
will be employed in paying off the amount
named for the properties in the federal
court, and also providing for such deveI-
opments as will be necessary to put the
concern on a paying basis"
Division of Stock
The new company will have SO 000. 900
first preferred. per cent stock, with
dividends cumulative from October 1 1912
There will be s500O,Oo0 second preferred
non-cumulative per cent stock Then
there will be s75o0.0O0 common stock. The
Standard Steel company has no bonded in
debtedness.
When the reorganization of the South
ern Iron and Steel company was UNDER
taken sometime ago about 9715 psr cent of
the stockholders and bondhoiders entered
the plan. The interest of the remaining
holders must be cared for in the next
reorganization, and for that reason the
assessment plan has been agreed upon
-Four installments are permitted in nav
ing the assessments so as to bring about
the raising of sl,9S0,000 the first due on
September ].
The modified plan of reorganization is
set forth in a booklet issued which in
cludes the report of President Bowron. of
the Standard Steel company, and of a
special examiner who went over all the
properties of the company. Mr. Bowron
showed that besides caring for the in
terests the company made a net earning
in seven months of $135, $50. 40.
Mr.. Bowron when questioned as to
the ore properties to be purchased said
that had not been decided on.
He said many guesses had been made
as TO the amount to be spent and the new
plants to be put up; that no old blast iron
furnaces would be purchased that as
soon as 1t was found more iron was need
ed the company would build its own fur
naces.