Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-07-05
THE STEEL 1.RUsr DIVIDEND.

Stand, National fFotel-
THE sTEE Faust DIVIDEND.
The declaration of the dividend pol
icy of the United States Steel Corpo-
ration by the action of the directors in
putting both the preferred and common
shares upon the list of paying securi-
ties. goes a long way toward clearing
the atmosphere Of uncertainty which
has surrounded this. gigantic combine
AN uncertainty ,whith has affected the
markets at home and abroad for
months.
whils, this.feeling|is now dispelled,
the permanent success OF Mr..
Morgan's colossal Syndicate is not yet
established.
No. long ago Mr.. ,Carnegie, tthe long
est head ever in the steel business,
took occasion to remark that steel was,
either a king or a pauper This aptly de-
scribed the whole situation in this in
dustry, and it issthis Condition the bill
lion trust will haze to contend against,
Just now steel is.undisputed king. If
it were otherwise, the shEewd manage
ment oil the United States Steel Corpo-
ration would not have declared a divi-
dend on its common-stock, but stopped
tn the preferred. AS the iron expert
the Louisville Courier-Journal says.
to pay on the common stock argues
that in the judgment of the directors
there is no apprehension that the
money cannot be easily~provided. me
distribution required is enormous. In
round numbers there is $3.50, 900, 600
leach of the common n preferred
q the declaration ofsthe diyi-
beans the distribution to the,
bIders of no less han S60.500 900
year, of which SIS, 125 900 is to be,
out at once. lShis vast sum is
posed to represent the profits of the,
Indicate after paying the operating
penses, the interest on the large
nount OF bonds of the underlying
UlHpanies and on the S304 900. 900 Of
bonds issued in exchange for the Car
negie Steel Company properties. The
charges on the cempany's own bonds
alone amount to over SIS 600. 600 year.
". so that in it's Interest and dividends
NE syndicate will have to make an an
1nual disbursement of SIS. SOC, 900. The
interest on the bonds of the constituent
companies and on the S., $780, 600 steam
ssip bonds guaranteed by the American
SAAand Wire Company are deducted
oil the gress earnings before the net
is I'D, hence do not appear in the
SYM Ats,s harsss. ou,,.x~ ..v.
the Courier-Journal, sit was calculated
at the time of the launching of the
syndicate tina the combined properties
would earn sos. 900, 900 per mum. The
positive statement was made last week
that s26. 500. 900 had been earned for the
three months ending June 30, which
would be at the rate of sloe. ooo, 900 a
year, not qui.S|up TO Che earlier esti-
mate, but sufficiently so for all practical
ufboses. 1t may be added hat II $685.
. 900 is earned for the year, the divi-
uends on the preferred stock and the
interest on the bonds would absorb
only s5ss SOC, 600, leaving s52. SOC 600 for
the common stock, or nearly 10 per
cent. Whether this can be kept up or
not is the problem the steel millionaires
have set themselves TO solve"
In plain words, the outlook for the
Billion trust is as good as 1t is Tor
the iron Industry in general. With IA
vorabls conditions, its earnings and div
iderds will continue.