The Birmingham age-herald., 1920-03-20

of industries to peace time operations, caused a subsistence in the demand for foundry iron and consequent slack ening in shipments from the furnaces.
 By the first of August, he states, conditions had improved to an extent that justified the company in blow ing in two Of the idle furnaces, thus making four active stacks on that date. Iron, which had been selling at $S4 a
 ton on January 1, declined to $26.75
 basis the last of March. then began slowly advancing until the end of the
 year, when it was on a sSs basis.
 OUTPUT
 The company made 250.000 tons of
 pig iron in 1919, compared to 357,- 900 tons in 1918. There was corre- spending decline in the production of coal, due largely toAthe railroad ad- ministration buying large quantities of coal in Kentucky and Tennessee. there
 by curtailing the market for the Ala
 bama porduct.
 The construction of the by-product
 coke ovens, MT. Mcqueen states, has not progressed as rapidly as he had ex-
 pected, the delay being due in large
 part to failure of contractors to de-
 liver supplies and materials on time.
 By April 15.'s he says, we shall in all probability have these ovens in
 run, thus effecting a material reduc- tion in the cost of manufacturing pig iron. In addition, the sale of the by products will, we confidently believe, add substantially to the yearly income, We are pleased to state that it now appears that, the original estimate of S6 .000, 900 as the cost of this improve ment will not be exceeded" DISQUALIFICATION Referring to the identification of the coal and ore mines, MT. Mcqueen says: This necesitates the construction of transmission lines, power houses, etc, with full equipment, involving an out lay of something like s1,500,000 but the saving in cost and increased out puts will, we feel sure, justify this ex- penditure.
 Power necessary for generating this current will be available by utilizing surplus gas at the by-product plant which might otherwise be waste prod uct. The supplies equipment, etc, necessary were contracted for last sum- mer and fall before the recent ad- vances in price, but manufacturers are badly behind on delivery of this equip ment However. sufficient equipment has now been installed to serve elctric energy to our North Birmingham fur nace Dolonite quarries and the by- product plant"
 Skip-hoists were installed at furnace No during the year, and also new shed, overhead cranes and iron break : CTS, which break and load railroad cars, and furnace No. is being similarly equipped These improve ments will result in large saving Of labor expense.
 MT Mcqueen reports that provision had been made for retiring s2.000,00o of first mortgage bonds due on Feb ruary 1, and with the retirement of these the company will be free of mort gage indebtedness. On Augu0 l, 1919, the company put out a ten-year per cent notes issue
 >"You will see that on April i, 1918,
 we paid off s2,o00.000 of bonds" Presi- dent Mcqueen states. "On February l, 1920, the first mortgage bonds of | S2, 900, 900 matured and were paid in l full With this and with the compile l tion of the by-product plant the cleo | trification of the mines, and other i'm provements made during the last tive years, we will have expended well over l s12,500,000. and in so doirts. will have 1 incurred only $6,000, 900 in funded debt which is represented by the above is- sue. We are pleased to state that the | properties are now free of all indebted,
 ness secured by mortgage"
 FINANCIAL STATEMENT President Mcqueen embodied in hi report the following financial state ment for the year 1919:
 Total earnings. after deducting al expenses of operation, including ad I ministrative expenses repairs, mainte nance, renewals. etc, $3,276, 197.S5. Les l bond and note interest, $259, ,15S.4S; de I preciation and depletion charges, $502, l 213.31; total, s761,3 ,371.7s. Balance 1 $2,514.S26.06.
 l Provision for federal and state in come tax. s42o,ooo Net earnings l $2.094,826.06.
 Dividends paid: Preferred. $46s, I 900; common, $500, 900; total, s1,0es, 900 Balance to surplus account, for year $1.025,S26.06.
 Surplus December 31, 1918. $6.zz7,-
 542.62, less adjustment for fedora taxes and doubtful accounts and con | tingencies, $165,1o1.11. Balance. $s.062, 441.52.
 1 Profit and loss surplus, Decembel 1o1o nQR 167