The Topeka state journal., 1902-01-30
IN FINE CONDITION.
Preliminary Report ON Opera
tiOns of the Steel Trust.

New York, Jan. 30.-A preliminary re-
port covering the operations of the Uni
ted States Steel corporation since it
came into existence, ten months ago
was made to the stockholders today 1t
was a forerunner to the more extended
resume to be submitted at the annual
general meeting on February Is, and
was designed to familiarize the share
owners with the financial status of the
company and the trade situation in the
market where it buys and sells.
The report, signed by both Charles H;
Schwab and Elbert H. Gary, declared
present 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 COM
pany will be taxed to their utmost to
supply the demand that is being made
The actual business now booked, and OF
which shipment is being called for fas-
ter than it can be supplied, amounts to
more than half the total combined an
nual capacity of all the companies. The
heavier products, like rails, billets, plates
and structural material. are sold up to
the productive capacity of the mills un-
til nearly the end of the year. In the
more highly finished products the con-
sumption in each case is greater now
than at the corresponding period in
1901, which, it should be remembered,
was an abnormally heavy year. The ex-
nected with the manufacture and sale Of
these highly finished products is for q
demand even larger than that of 1901,
and up to the limit of production"
Discussing prices the report said they
could have been advanced, but that it
was decided to be better policy to re-
frain from doing SO. The reference to
prices follows:
THE demand for products has been so
great that prices could easily have been
advanced. Indeed, higher prices have
been voluntarily offered by customers
who were anxious for the Immediate
execution of orders but the companies
have firmly maintained the position of
not advancing prices, believing that the
existing prices We're suficient to yield
a fair return on capital and maintain
the properties in satisfactory physical
condition and that the advantages to
be gained in the long run by refusing
to advance prices would be of substan-
tial and lasting value not only to the
companies, but also to the general busi-
ness interests of the country"
The report asserted that this policy
as to prices had not only a reassuring
effect upon the trade. but contributed
to the restoration of confidence in the
general business situation.
The report said that great progress
had been made in the general plan TO
harmonic the work of the many plants,
to secure perfect cooperation and to
effect economy in manufacture, but that
the end had not been reached and that
favorab BILE results might still be accom-
plished The departments of ore min
ing, coal mining. coke manufacture and
lake transportation. the report stated
have been thoroughly systemized, and
the arrangements of manufacturing
plants have been brought into closer re
lationship.
The report reviewed the larger finan-
ciaI operations of the company includ-
ing those of its organization and the
recently published statement of earn
ings for the first nine months of the ex-
istence of the company, and gave
condensed general balance sheet for
Noven ber 80, 1901. The settlement with
the underwriting syndicate was thus
stated:
The residue of the common and pre-
ferred stock of this corporation, deliv-
cred to the syndicate under the contract
of March Is, 1901. and not used for the.
acquisition by it of the stocks of the
specified companies, being the shares
which. as stated in the syndicate cir
cular of March 2, 1901, were to be re-
tanned and to belong to the syndicate.
amounted to 649,9S7 shares of preferred
stock and 649,9S4 shares of common
stock This residue of stock, or the
proceeds thereof. after reimbursing the
syndicate the $25.000.o00 in cash which