The Birmingham age-herald., 1922-02-10

first place. I do not believe it ad- visable for the state to go into the coal mining business. Seems rather queer that after all the effort to get conviets out of the mines, here is Q proposal for the state to keep them there.
 Again. the governors offer does not represent the value of the prop erty. It's worth more than the price offered by the governor. The sched- uled statement or assets is not ade- quate'
 First attention should be given to the amazing statement of Mir. Lowell in the second paragraph. He says the scheduled statement of assets ia not adequate. 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 Its inability to protect it's creditors. If it isn't adequate, why isn't it? Sure ly a corporation would not attempt 10 mislead the tribunal created by law for the purpose of protecting il and it's creditors when it is unable to protect itself and them.
 Which Is COrrectf
 But reports of the Montevallo Mining company to a commercial agency would indicate that some value must be placed on MT. LovelPs published statement, even though the i schedule of assets and the tax re- turns of the company would indicate otherwise. In It's report of December 31. 1920, to a commercial agency the Montevallo Mining company listed it's coal mines and improvements, less reserve for depreciation, at $479.956.- 22. This shows a wide variance of value. Which is correct
 Taking into consideration the sworn statement of assets filed with the bankrupt court and the tax re- turns in comparison with MT. Lovells s statement that the schedule is not adequate and the statement to the commercial agency, one thing is cer- tain: The state of Alabama has either offered the bankrupt court dollar for dollar on the value of the company's property or the Monte yallo Mining company has been es- caping taxation on A great propor- tion of It's property. thus qualifying itself for full membership in the Ala : bama Tax Dodgers league.
 offer Is Alternative
 The offer of the state to purchase the property outright was an alter native one. It first proposed to the | tOoAN6A OL AHH NOlnp6Ily llt lQi of all coal on hand at the value listed in the schedule of S100 000. The company listed it's total unprotected obligations at s1e6,549.47. It's sched- ulo showed $15,6O0 cash on hand. | With the S100.000 which the state would have paid for the coal on hand, the company would have $115,- 800 which would have cleared all unprotected obligations except $50,- 74s,47. Can 1t be that an established coal mining company doing a busi- 1 ness as large as the Montevallo Min ing company and having Just passed through a period of unprecedented prosperity. is unable to finance itself to the amount of s50.74S.477
 Price Fixing
 But MT Val J. Nesbitt, receiver of the company, who was the attor ney for the company before the bank ruptcy petition was filed, declined the offer of the state to purchase the coal at the list price. One reason, among others given by Mir Nesbitt was that the marketing of this coal by the state at a price sat by the state might break the fancy price Of Montevallo coal. This puts the com pany in the peculiar position, while it's affairs are being administered by the bankrupt court. of attempting to dictate the price of Montevallo coal while looking forward to the day when it will again come into its own | as a going concern.
 MT. Nesbitt probably is correct in his statement that the price of coal would be reduced. In my judgment, the purchase of the Aidrich mines by the state would mean a material re- duction in the price of coal. Various occurrences since -he Montevallo Mining company sought protection in the bankrupt court would indi- cate that the real opposition to the