The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-02
BIC PROFIT IN TRUST
GROSS EARNINGS OF STEEL COM
BINE FOR ITS FIRST YEAR
ARE $III,O67 1875
RETIRES STOCK FOR BONDS
Increase of Working Capital to BE
Increased by S5O,OOO,OOO, and
Number of Plants Are
to Be Improved.

NEW YORK, April 1.-The directors Of
the United States Steel corporation, in
quarterly meeting here today, gave for
NAL approval of the conversion plan,
under which it is proposed to retire pre-
ferred stock to the amount of $500, 900 coo,
upon which dividends are paid at the
rate of per cent per annum, and issue
bonds to the total Of $3.50, 100000, with in
terest fixed at per cent
May 10 was fixed as the date upon
which the project will be submitted to
the shareholders. The directors also is
sued a statement showing that the earn
ings Of the corporation for the first year
of it's existence, which ended on March
81, with the last month estimat ted, reach
ed total of $111, 067, 1876.
Before the meeting of the directors the
executive and finance committees were
in session and the executive commi ttee
as well as the general board of directors,
unanimously approved the conversion
plan. Former Judge E. II. Gary chair
man of the board, stated that the extra
$50, 600, 600 Of bonds above the $200 600 900 to
be used for the retirement of the pre-
ferred stock, would give the corporation
a working capital of about $l06,0 Co., to
be used in any way that the directors
might deem best He would not say
that this implied the acquisition Of any
new alants.
Plants to Be Improved.
The legal advisers Of the corporation
laid special stress on the point that no
preferred stock would be retired without
the consent of the holder. This, they
said, you'd remove any impression that
the retirement of the preferred stock for
new bonds would be compulsory.
The directors voted the usual dividends
ct the rate of per cent on the preferred
stock and 4 per cent on the common
stock.
The statement of net earnings showed
that the record by months was as fol-
lows; April 1901, 81 1856, 744: May, &c. 612, $40;
June, S93 TAT; July, 50, $50 ISL; August, So
S1o,SS0 September, $9,795,641; December,
ST, 75S, 1872; January, 1902. $S,901,016 Febru.
airy, 1902, $7,67S,5SS; March (estimated), 49,
0O0. Total net earnings, Sill, 067, 1876.
The statement said: THE net earnings
were arrived at after deducting, each
month, the cost of ordinary repairs, re,
newals and maintenance of plants"
Each stakeholder Is Considered.
The amount applied each month to re
pairs. renewals and maintennce OF
charges of the subsidiary companies,T
was about 10 per cent. This is the first
time the corporation has made an ex-
plicit statement on this point.
1t proposes to spend SIS, 600, 0GG to $50, Co.,
coo of the needed working capital in i'm
proving a number Of the subsidiary COM
panies, which before the consolidation
were in constant competition.
OF the net earnings, sinking funds on
bonds and depreciation and reserve funds
claimed SIS. s99, 695; interest on bonds, S12,
zoo, co., and dividends $50, 017,789, while the
undivided earnings were $24. 1917.
The meeting of the stockholders to pass
upon the conversion scheme will be held
at Jersey City.