The Penn's Grove record., 1901-10-04

Official Statement For tho First si>
Months Shows That the Billion Dol
lar Combination is in a Far More
Prosperous Condition Than Was Sup
posed-Daily Earnings $500 900.
New York City.-Net earnings of the
United States Steel Corporation for the
first six months of the company's ca
reer, as announced officially, are $54,-
954,S71. These figures were given out
after a meeting of the company's di-
r%ectors. at which the usual quarterly
dividends were declared on both the
common and preferred stocks.
Unusual interest was shown by
Wall Street regarding the probable ac-
ton Of the directors on the matter of
their issuing a statement of opera
lions. All doubts were scattered,
however, after the close of the Stock
Exchange by the formal statement of
the company's sound position. The
figures show an enormous business,
which was not injured, apparently, by
the steel strike.
President Schwab tells the story of
the company's operations since April
last, when the "Billion Dollar Trust
was launched, In the following figures
describing the net earnings: April.
$7,356, IA; May, S9.612,349: June, So
1914, TAT; July, $3.50, ISL; August, So
S10,S80; September (estimated), &c.
100000; total, $54, 954,S71.
The actual financial requirements Of
the Steel Trust, which include divi-
dends at the rate of seven per cent.
oil the preferred and four per cent. on
the common stock, together with the
interest on the bonds, are ST ,021 ,907
for a full year. So far this year 1t can
be seen the company has earned with
in SIG, 100000 of this required amount.
During July and August, the months
when the steel strike was waged the
~f1ercest, the earnings of the Steel
Trust did not show any decrease. The
closing down of the entire system of
plants of the American Tin Plate Com
pany, half of the mills of the American
Sheet Steel Company, and a large per-
centage of the properties of the Steel
Hoop Company, according to the state
ment, was not reflected in the earning
capacity of the big steel company.
This is explained by the statement
that the executive management of the
company was able to distribute the
business which otherwise would have
been left ~unhandled among the various
mills which were unaffected by the
strike.
Probably the most important part of
the official statement is the
ment that large sums are set aside
from time to time for the maintenance
fund and for the establishment of D
sinking fund. 1t has been generally
known In Wal Street for some tin
that the company had established a.
sinking fund, but no one was taken
into the confidence of the corporation
regarding It's extent. In the statement
1t is announced that S7,059, 705 has
been set aside. After this amount was
deducted the company charged off the
interest of the bonds, amounting to
$T,G00,000, the interest for half a year
on the 1905, 100000 five per cent. bonds
issued when the company was formed.
The net earnings as stated in the
official announcement represent. there
fore. all the funds applicable TO divi-
dends and interest on the bonded in
debtedness. When these amounts are
deducted there remains a balance ap-
plicable for a surplus or new construc-
ton, as the directors may decide,
amounting to S12,326, TAP.
When the process of concentration
was completed the corporation was
thrown face to face with a strike of
immense proportions, which threat
ened the integrity of the consolidation.
Under these conditions the showing
is considered by the directors most IA
yorable.