The Savannah morning news., 1902-01-30
THE BIG STEEL TRUST
o,,r,oo< IS BRIGHT FOR THE BIG
COMBINE.
IT'S EARNINGS ENORMOUS.
SyNp1cATE WHICH ORGANIZED Ir
MADE MILLIONS.

~,r. schwab and Gary Say They
have plenty of Business Ahead.
corId Advance Prices If They
cared to, But Prefer to Hold Them
IN Present Level, the Profits Be-
ing Entirely Satisfactory-The
settlement with the Underwriting
syndicate Made PubIic-Big Cash
Balances ON Hand.
New York Jan. 29.-A preliminary
r.nort covering the operations of the
United States Steel Corporation, since
~ came into existence ten months ago,
was made to the stockholders to-day.
TIL. report, signed, by both Charles NJ .
schwab and E. H. Gary declared
nresent business and future outlook
viewed ahead through 1902 to be highly
satisfactory. The report said:
The outlook for the year 1902 is
very bright. Everything indicates that
all of the facilities of each subsidiary
company will be taxed to their utmost
10 supply the demand that is being
made. The actual business now booked
and of which shipment is being called
for faster than it can be supplied
amounts to more than half the total
combined annual capacity of all the
companies. The expectation of those
closely connected with the manufac-
tue and sale of highly finished pro-
ducts is for a demand even larger than
that of 1901 and up to the limit of pro-
duction."
Discussing prices. the report said
they could have been advanced, but
that it was decided to be better policy
to refrain from doing so. The refer
ence to prices follows in part:
The demand for products has been
so great that prices could easily have
been advanced. Indeed, higher prices
have been voluntarily offered by Gus
toners who were anxious for the i'm
mediate execution of orders, but the
companies have firmly maintained the
position of not advancing prices, be-
lieving that the existing prices were
sufficient to yield a fair return
on capital and maintain the
properties in satisfactory physi-
cal condition and that the
collateral advantages to be gained in
the long run Dy refusing 10 advance
prices would be of substantial and last
ing value, not only to the companies,
but also to the general business inter
ests of the country"
The settlement with the underwrit-
ing syndicate was thus stated:
How the Syndicate stood.
The residue of the common and
preferred stock of this corporation, de-
livered to the syndicate under the con-
tract of March 1, 1901, and not used for
the acquisition by it of the stocks of
Tie specified companies, amounted to
6499S7 shares of preferred stock,
and 649,9SS shares of common
stocks. This residue of stock
or the proceeds thereof, after reim-
bursting the syndicate the $4,000, 900 in
cash, which it paid to the corporation,
and approximately $3,000,000 for other
syndicate obligations and expenses,
constituted surplus or profit of, the syn
dicate." III.
The condensed balance sheet for Nov.
30 showed that on that day the ac-
counts receivable aggregated $45 ,269,-
45S, the bills receivable 1881, 463, and
the cash on hand s55, ,315,527, a grand
total of $1O3,4O6, ,444.
The current liabilities on Nov. 80,
we're stated at 0,269. $50, and the sur
plus of the corporation and the sub
sidiary companies was placed at $174,-
SH,299. The cost of the properties
owned and operated by the several
federated companies was given as ST.
437. .494 1852.