Bull from Birmingham

Big, powerful bulls and shrewd little bulls have been busy of late driving bears from their green stockmarket pastures.

Into the parade last week went a southern bull whose only weapon is his bellow. He was Col. Louis Alexander May of Birmingham, great admirer of Gulf States Steel Co.

"An exceptional opportunity in my FAVORITE stock. A unique situation existing" was the heading of a postcard, printed in red ink, which Col. May sent last week to all of Gulf's shareholders, all of his friends, many a broker. It predicted that Gulf, selling in the low $30'$ last week, will pass $100 within a few months, may soon be absorbed by a bigger company. But Gulf, said Col. May, will enter no merger at a price of less than $200 if he can help it.

The Colonel was born 68 years ago on his father's cotton plantation near Birmingham. He became a runner for a Birmingham bank, was soon made general bookkeeper. At the age of 27 he became president of American National Bank of Birmingham. Various mercantile and mining ventures have kept him busy, have given him, says he, millions of dollars, also have taken millions of dollars away. His great interest for many years has been to build a railroad from Muscle Shoals to Mobile Bay, running along the valley of the Warrior River, passing through lands rich in coal and iron. The charter for this road, to be called the Mobile & West Alabama Railroad, was granted 35 years ago, but Col. May recites a sad story of how other railroad groups have blocked the project. But his hopes for the road are high at present, and he thinks the $30,000,000 needed can be obtained in England where most of the U. S. roads have obtained capital at some time.

The company of which Col. May is so especially fond has been familiar to him from boyhood. Gulf States Steel is second in the South only to Sloss-Shemeld Steel & Iron Corp.. but last year operated at a loss. Strategically located, it has been sought by American Rolling Mill Co. and the Eaton interests. Steelmen agree that eventually Republic Steel Corp. will acquire it.

Gulf State's ore reserves are said by Standard Statistics to consist of 120,000,000 tons of iron, 300,000,000 of coal. More cheery, Col. May gives 200,000,000 and 600,000,000 as the figures. He comments on the fact that the company has no mortgage indebtedness, but omits the fact that it has outstanding $5.600,000 in 52% debentures.

Holding aloof from pools, Col. May simply advises the purchase of Gulf when he thinks it is low. The greatest of his so-called campaigns began in 1921 when the stock was $25, ended in 1923 when it was $104. At that time he said the stock should go to $400. Although at last week's prices Gulf was selling at double its 1931 low, speculators apparently did not share the enthusiasm of the bullish colonel from Birmingham. On the day that it became known he had started another campaign Gulf dropped $22 a share.

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