The times., 1899-06-05
PROFITS IN THE IRON TRADE.
High Prices for Goods and Their Ef-
feet on Earnings.

What may fairly be called startling fig
ures regarding the iron and steel trade
and the profits of some of the principal
companies are given by the New York
Times
Pig iron now has a price higher than
steel rails commanded last year; finished
steel plates worth SIS and 500 a ton in
1898 are in 1899 commanding substantial
premiums beyond $40 ton Nails have
doubled in value. Coke sells at 100 per
cent advance. In practically every iron
and steel department similar phenomenal
advances are in evidence. If Jay Gould's
gospel be safe 10 depend upon prosperity
by the iron and steel barometer test is as
sured beyond all past precedent, beyond all
forecasts ever registered.
About half a score of iron and steel
properties now have their securities dealt
in on the New York Stock Exchange;
most of them have been lately intro
duced, representing recent consultations
And over half of these new industrials
are about to have their common shares
put upon dividend bases and practically
all OF them have preferred shares already
paying dividends. If new activity and
strength in securities are to develop,
some of these iron and steel properties
Improvement With phenomenal market
values for product ruling, with demands
| for output running far beyond suppIy.
with contracts for deliveries at top prices
| extending months and months in advance,
it will of course be easy for the bigger
| properties to make extraordinary profit
exhibits
by way of illustration can be quoted
| mere of1ciai figures, not hitherto made
I In In rF b..
| these new iron and steel properties-the
American Steel and Wire Company. Its
| first fiscal year began at the beginning OF
| this calendar year, and from January ! tC
the 1st of May it had piled up net profits
of S37O0,000. Mays net reached 81, 2OO, 900
while the June schedule assures over
81 200, 600 of net profts-the total for the
| first six months of the year thus reaching
| 81, 100 000.-
These profits have resulted from con-
tracts made in advance at figures much
below what are now trade prices. But il
the remaining six months OF the year
wherein materially advanced prices obtain
do not at all exceed the May and June
| profits, there will be from July on to The
| end of December 81 200 600 to add to tn,
S6,l00,000 of the first six months of the
| year, or a total for the twelve months OF
| $4,000, 900. To pay the per cent annua
dividend upon the company's preferred
stock requires s., 500, 900, leaving surplu.
of $40. 500 900, equivalent to over 20 per cen
upon the corporations outstanding $50, ,0OO,.
/ 600 common stock.
Extraordinary even TO the extent o.
being phenomenal, is an exhibit like this
but tho naturalness of 1t is amply dis.
closed in the wonder working changes tha
since this time a year ago have come into
every branch of the iron and steel indus
try.
What is by these remarkable figure
shown to be true of the American Stee
and Wire Company is probably relativel.
true OF most Of the other great properties
engaged in the varied branches of thi
same trade.
And iron and steel makers are not tn,
only prospecting interests; they are reall!
but representative"