The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1890-10-17
STEEL PROFITS NORTH AND SOUTH.
Figures That Show the Superior Advan-
tages OF the South in steel Making.
philadelphia Special. }


"The stockholders Of the Pennsylvania
Steel Company held special meeting to-
day and voted to increase the capital
stock from 100000 to $4,000, 900. The
new stock will be issued to present stock
holders at $50 share, thereby realizing
81, 000,0 900. One-half of this sum will be
devoted to paving the balance due on the
Sparrow Point Works. and the remaining
81 SOC, 600 will be used for working CAPT
tai. 1t was reported to the stockholders
that the business of the last six months
had been the most profitable of the COM
pany's history. The dividends last year
we're Is per cent in cash and stock, but
the actual profits we're over 30. The
stockholders listened to the report with
grca. good feeling, and expressed them
selves unanimously in favor of tho old
flag and protective tariff.
"A special meeting of the Bethlehem
Iron Company will lie held on November
26th, to vote on q proposed increase OF
the capital stock from $4,000, 600 to $4,000
OO0 The company has just secured some
fat Government contracts and must en-
large its plant. 1t is Il close corporation
and is understood to make % per cent Il
year.
"The directors of the Cambria Iron
Company, which lost $l,0O0,OoO by the
Johnstown food, propose to issue 81 ,OOO,-
900 moro stock, making the capital
stock $5,000,000 A syndicate, headed
by Drexel 4 Co., offer to take the stock AT
SOS per share, par $50, but the stock
holders want to buy it themselves at par
The company has a surplus of $4,O0O,OOt
after making good the food damage, and
paid 10 per cent last year in..spitc of the
great loss. 1t is expected to earn 80 pei
cent this year.
"Thc Phoenix Iron Company, the largest
concern in the steel beam trust, has just
created mortgage for $l,000,OO0, with
the proceeds of which it will enlarge its
plant. Its works are running night and
day.
"Tho Thomas Iron Company has just
declared stock dividend of 20 per cent
thus increasing its capital from 1000, 0OJ
to $2,500,000 The dividend represents
earnings withheld from the stockholders
and invested in the property. The COM
pany earned $4S3,000 in the year ending
June 80, but only distributed 10 per cent
in dividends. An English syndicate bid
81, SOC, 900 for the works but the offer was
refused.
Well, the Southern iron men ought to
be able to secure their share Of the ''pic. "
If the steel makers Of Eastern pennsyl-
vania can make 81 to 80 per cent on pro-
duct wrought from imported and Michi-
gan ores, costing from $G TO $3.50 q ton,
surely the South can do fairly well ut
making steel from ores that cost from 10
cents to % ton in the stockhouse. II
they can thus prosper, making steel from
iron the first cost OF which is never less
than SIG ton, and will average near if
not quite $40 Il ton, certainly the South
should get Oh with iron that can be
smelted at 4 profit and sold for $40 IL ton.
We, too, NAV as we'll be for the old flag,
prohibitivc tariff and an appropriation
for swectcning, while these things are
going Give the South chance in the
race and she will get there in the lead,
and our people are disposed to take the
chance whether it is given" or not.
Southern steel will become II factor OF
Importance anyhow. 1t will be trouble
some one if the steel makers of the East
who need high protection undertake
to hold up prices above the normal.
The manufacture of the article in
the South can he carried on ut so low
cost, once the industry is established,
that it will be bound to regulate the
market. Remember this ten years hence
and toll us whether the Times is prophet.