The Birmingham age-herald., 1924-10-19
GADSDEN PLANT
 MAY BE BOUGHT
 BY GULF STATES
Rumors Fly Fast Follow ing Sloss-Alabama
 Merger

As a result of the absorption of the Alabama company by the Sloss-Shef- field Steel and Iron company, it is be- lieved that the furnaces and other prop erty of the Alabama company at Gads- den will be disposed of by Sloss. While nothing official was obtainable, well informed industrial men were inclined to believe Saturday that the property would be sold to the Gulf States Steel company. Advices from the east gave substance to the belief that the disposal of the property was inevitable.
 The announcement of the Sloss-Ala- bama merger contained the statement that the deal was conditional upon the Sloss company successfully closing cer- tain negotiations for property and right" Speculation has been rife as to the exact meaning of this statement. Sloss officials refuse to give any interpretation to the mysterious words, while J. w. Porter, ranking executive here of the Alabama company, declares he is uninformed as to their meaning.
 Investigation developed the rumor that the Sloss company was after an increased by-product output, and would acquire the plant of Morris Bush and associates at Tarrant City. This was denied by MT. Bush, who told an Age Herald representative that so far as he knew his company was in no way in- volved in the transaction, and that he would undoubtedly know something about it if the suggested maneuver was in immediate prospect.
 RumOr Involves Pratt
 Another possibility suggested Satur- day was that Pratt Consolidated was involved, but it Is we1l-known that the Pratt company has other matters along this line for consideration, and it is not believed that Sloss would be in terested in acquiring the admittedly val uable holdings of the Ramsey-McCor- mack interests.
 The fact is rather well-known that the furnace capacity of the Sloss com pany is great enough for it's present needs, and that the Gulf States is not particularly anxious for additional pig iron. However, it is equally true that the acquisition by the Gulf States of the Gadsden properties with the ore and coal nearby would not create bad situation for that company.
 Speculation so far has not placed any value on the Gadsden assets of the Alabama company and so far as nego- tiations have progressed, the entire properties of the Alabama are included in the trade.
 Price About $5,OOO,OOO
 Sloss is to pay about $5,000,000 for the properties. it is said, in 10-year notes for $4,000,O0O at five per cent. The Alabama company retains assets i lx,-ks soh srsx 00n tO tHsl ute to it's stockholders. A group of bankers have taken over $1 1,30O,OOO of the first payment notes and there will be no public financing of the remain der. The bonds of the Alabama com pany are to be assumed by Sloss. Stock holders of the Alabama will secure $100 and accrued dividends, second pre- ferred like amount, while the common will receive between $50 and 800.
 It is believed the transaction is highly advantageous for Sloss, as that company will come into possession of the valuable Mary Lee mines near North Birmingham, enabling it to de- liver coal at it's furnaces and ovens, partly over it's own railroad, thus say ing a heavy annual freight charge.
 Historic Firm Passes
 The sale of the Alabama company will bring to an end one of the most historic companies in the south. Its ex- periences have not been the happiest, although experts agree that the com pany has not failed to help this dis trict onward. Its products have all ways borne a splendid reputation.
 In the old days it was headed by the late Colonel T. 0. Bush, who made tremendous success of it's operations. It was there that Horace Hammond received most of his early training. When Colonel Bush died, the company was taken over by Joseph Hoadley. Later the late Guy r. Johnson, was in charge. A receivership followed, and Harry W. Coffin, from the Moore Handley school of business was placed ill charge by the United States court. He made an ehviable record with the Alabama in association with w. E. Leake. Later, Coffin and Leake re- tired, and John w. Porter, at present the ranking local official, was made vice president.