The Birmingham age-herald., 1922-02-05
Proposal to Buy and Operate
 Mines One Most Sensational Events in Industrial History

 Mines One Most Sensational Events in Industrial History
 (Continued From Page one) economy. upon which board all the powers heretofore vested in the board of convict inspectors are now vested. declines to entertain or accept the of fer which you made the governor of Alabama in your letter of the s1st ultimo.
 "As officers and agents of the
 state of Alabama in charge and
 control of the convict depart
 ment of the state, we cannot ac-
 cept your offer for the reason
 that 1t means loss to the state
 of Alabama of nearly 50 per cent
 of the amount which the Monte
 vallo Mining company Is and will
 be due the state of Alabama un-
 der and by virtue of the now ex-
 isting lease contract between tho
 state of Alabama nnd the Monte
 vnllo Mining company.
 we desire. however, to submit to you as receiver of the Montevallo Mining company, in writing the prop osition which the governor, Thomas t1s iNaApyp ouDinlNC0 to SOQ, anu WHICH c. B. Rogers, as chairman of the board of control and economy, orally submitted to you and NIT. Lvell, as president and treasurer of the Monte vallo Mining company on January 27 and 2S, 1922. In order that there may be no difference of opinion as to the terms of the contract which we pro pose to be executed between the state of Alabama, acting through its gov ernor and the board of control and economy, one party, and the Monte vallo Mining company. the other party. we submit the states offer in writing, which Is as follows;
 Would Buy All Property. "The State of Alabama acting through it's governor and the board of control and economy, which is au- thorized to purchase or lease lands or property for or on account of the state, with which to employ convicts, will purchase all of the property and assets which are listed by the Monte vallo Mining company in it's schedule filed in the bankruptcy court at the price listed in that schedule, which is as follows:
 Schedule A. Accounts and notes payable s143, 3os.s2 Due state of Alabama
 COHNlCS nlFo oZ,0UO.0O Due payroll for free labor 14.650.0o Due salaries account ... 6,356.00 Amt. due for state and
 county taxes ........ 2,233.65 First mortgage bond .... 300, ,000.00 w. F. Aldrich, first mortgage
 notes .................. 7,5oo.oo Total Schedule A .$574,o4s.4
 Montevalio Mining Company
 Schedule II.
 Estimated value Real property, real estate
 on which is situated the
 mine of petitioner
 located in Shelby county,
 AlaDarna ...............S 90,000.00 Personal property located
 in Shelby county .....e. 100, .0o coal on hand ............. 100, ,000.00 Accounts receivable .,... 106, 00O. .0o Bills receivable ..... 216.0O0. % Bonds, various depomina-
 tions 46,000,00 cash on hand ............ 15,s00.0e Total Schedule B ... .s65S.e)o. .oo out Of the purchase price to be paid Tor the property and assets so listed in said schedule, the state of Ala bama will pay the debts of all cred itors of the Montevallo Mining com pany, as listed in it's schedule so filed, as and when the said debts may ma ture, and will assume the liability to pay such creditors the amount due them, as shown on such schedule, when the debts mature. The state of Alabama will also pay over to the Montevallo Mining company whatever balance of the purchase price which may remain after paying and assum- ing all debts of the Montevallo Min ing company as shown by the above schedule.
 "In other words the state of Alabama agrees to purchase all assets of the MontevalIo Mining company. the proposed bankrupt, ns listed in It's schedule filed in the bankruptcy court, agRregat- ing fin the sum total of S65S, 500, at the price named in the sched- ule, and out of this price 1t will pay all debts of the MontevaIIo Mining company. the proposed bankrupt, as shown by It's sched- ule. aggregnting in the sum
 total of &574,04S.47. and will as-
 sume liability to pay all of such debts when and as the debts ma-
 ture. and will pay in cash upon execution of contract of purchase and sale, the balance remaining
 of the purchase price, namely So4,551.53. to the Montevallo Min
 ing company, the proposed bank
 rupt.
 You may not have the authority TOW as receiver to accept this offer and to consummate the contract, but of course the bankruptcy court can authorize you to do so, or make such orders as will authorize the contract proposed, and we request that you submit this offer and proposed con tract to the bankruptcy court or Its rroper officers forA consideration and action. Yours very truly.
 THOMAS E. KILBY, Governor.
 "C. B. ROGERS.
 CIVILIAN F. FEAGIN. Members Board of Control and
 Economy"