The Birmingham age-herald., 1922-02-10
KILBY WOULD CALL
 EXTRA SESSION IF. MINE BID ACCEPTED.
GIaring InaccuraCieS Shown in Financial Statements of Bankrupt MontevaIIo Com pany, Governor Charges in Statement
By FRED H. GoRAILEY Montgomery Pureau The Age-Herald, 221-2 First National Bank Building


 Montgomery, February 9.-(Spe- cial.) the Montevallo Mining company will assent to the sale of it's coal mines at Aldrich to the state, Governor Kilby will call a nextra session of the Alabama legislature when it appears that additional au- thority is needed before the state can operate the mine. This declaration was made by the governor in a statement regarding the bankruptcy proceedings by the Montevallo Min ing company, issued by the executive department late Thursday afternoon.
 Governor kilby charged that glar- ing inaccuracies are shown in some of the financial statements of the company and that the state Of Alabama has either offered the bank rupt court dollar for dollar on the value of the company's property or the Montevallo Mining company has been escaping taxation on a great proportion of it's property, thus qual- flying itself for full membership in the Alabama tax dodgers league"
 Compares Schedules
 The statement compared the sched- uled assets of the company as filed with the bankrupt court with the assets as listed for taxation as well as assets as presented to a conner cial agency. Governor Kilby said the statement filed with the bankrupt court under oath and the tax return evidently were approximately cor rect, but that the company submitted to 8 commercial agency a statement placing a value of $479.956.22 on the property which was turned into the bankrupt court at value of S190, ,000.
 Governor Kilby insisted that the offer of the state to take over the property by paying creditors dollar for dollar and by paying the company in cash sS4.o00, which was given as the value of assets over liabilities, was a fair proposition and one which would be accepted by Alabama busi- ness men, who in the past had played in luck to receive fifty cents on tho dollar.
 Purchase All Coal On Hand
 The governor also declared that the state proposed to purchase from the company all coal on hand at the value listed. one hundred thousand dollars, but that V. J. Nesbit, re- ceiver, declined on the ground among others, that placing this coal on the market by the state might tend to reduce the market price of the coal.
 This puts the company in the pe- culiar position, while it's affairs are being administered by the bankrupt court, of attempting to dictate the price of Montevallo coal while look ing forward to the day when 1t will again come into It's own as A going concern" commented Governor Kilby.
 Much consideration was given in the statement to a quotation from a statement of w. S. Lowell, pres ident of the Montevallo Mining com pany in opposition to the purchase of the mines by the state which was published in The Birmingham Age Herald Sunday morning. MT. Lowell was quoted as saying: "The gover- nor's offer does not represent the value of the property It's worth more than the price offered by the governor. The scheduled statement of assets Is not adequate"
 He says the scheduled statement of assets Is not adequate" replied Governor Kilby. ''Why Isn't it? It was filed as a sworn statement of assets with the bankrupt court after the Montevallo Mining company, by it's voluntary petition. had admitted it's inability to protect its creditors. If it isn't adequate, why isn't it? Surely corporation would not at tempt to mislead the tribunal created by law for the purpose of protecting it and it's creditors when it is unable to protect itself and them"
 Governor Kilby said he had been informed the suggestion was made in the bankrupt court that the proceed ings were friendly among the cred itors of the company. If this is cor rect the only conclusion that can be reached is that the Montevallo Mining company proposes to seek the can cellation of It's contract with the state of Alabama. through which 1t Is now paying the state about S20,000 monthly for convict labor" he de- clared.
 Governor Kilby announced that he Is determined to do everything in his power to protect the states contract in order that the public may not suf- fer loss It was in this connection that he said an extra session of the legislature would be called if neces- sary. He insisted that the state has ample authority now to purchase and operate the coal mines as it is now the owner and operator of the cotton mill at Speigner and the various state farms, but declared if any legal ob- stacles came up it would be better for the state to spend 5,000 on an extra session of the legislature than to lose s260,000 on the contract with the Montevallo Mining company.
 Governor Kilby's statement follows:
 "The filing of a voluntary petition in bankruptcy by the Montevano Mining company and the publication
 Continued on page two.