The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-30
General Business Interests of the
Country Benefited by Stability in
Rates for Iron and steel.
OUTLOOK FOR 1902 BRIGHT
ENORMOUS TRANSACTIONS SHOWN
BY THE BALANCE SHEET.
Cost of Properties Owned by the Cor
pOration Given as s1,437, ,494,s62
-CoIIectiOns Good.

port covering the operations of the United
States Steel Corporation since 1t came into
existence ten months ago was made TO the
stockholders to-day 1t was forerunner
TO the more extended resume to be submit
ted at the annual general meeting on Feb.
II and was designed to famiharize the
shareowners 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 NJ. Schwab
and Elbert II. Gary. declared present bust
ness and future outlook viewed ahead
through 1892 TO be highly satisfactory. The
report said THE outlook for the year 1902
is very bright. Everything indicates that
all 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 ship
ment 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 heavier products like rails,
billets, plates and structural material are
sold up 10 the productive capacity of the
mills until near 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 i'm 1901 which ii
heavy year. The expectation therefore of
those closely connected with the manufac-
ture and sale OF these highly finished
products is for a demand even larger than
that of 1901 and up to the limit OF proau
tion.''
Discussing prices. the report said they
could have been advanced, but that it was
decided to be better policy TO refrain from
dofnQ The referepce to prIces folIOuS
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 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
were sufficient TO yield a fair return on
capital and maintain the properties in sat
isfactory physical condition and that the
collateral advantages to be gained in the
long by refusing to advance prices
would be OF substantial and lasting value
not only to the companies but also to the
general business interests OF the country"
The report asserted that this policy as to
prices had not only reassuring effect on
the trade but contributed to the restoration
OF confidence in the general business situa-
tion.
HARMONIZING THE WORK
The report said that great progress had
been made In the general plan to harmonize
the work of the many plants, to secure per-
feet cooperation and to effect economy in
manufacture. but that the end had not
been reached and that favorable results
might still be accomplished. The depart
ments of ore mining coal mining. coke
manufacture and lake transportation, the
report stated. have been thoroughly sys-
tematized and the arrangements of manu-
featuring plants have been brought into
closer relationship. Advantage has been
taken of the cheapest distribution in the
scheme OF economies.
The report reviewed the larger financial
operations OF the company. including those
OI its organizations, printed the recently
published statement of earnings for the
first nine months of the existence of the
company and gave condensed general bal
ance sheet for Nov 30. 1901. The settle
Inent with the underwriting syndicate was
thus stated: The residue of the common
and preferred stock of this corporation de-
Ivered TO the syndicate under the contract
OF March 10. 1901, and not used for the ac-
QUESTION by 1t of the stocks of the specified
companies being the shares which, as
stated In the syndicate circular Of March
=. 1901. were to be retained by and TO be-
long to the syndicate. amounted TO $40 9S7
shares OF preferred stock and 649 9SS shares
OF common stock. This residue OF stock or
syndicate the S25.0OO.0OO in cash which IL
paid TO the corporation. and approximately
100000 for other syndicate obligations and
expenses. constituted surplus or profit OF
the syndicate. The transactions between
this corporation and the syndicate having
been concluded. agreement of final set
tlement and mutual release. dated Jan g.
1902. was executed between this corporation
and the syndicate managers
The condensed balance sheet for Nov
50 showed that on that day the accounts
receivable aggregated S45 269. .453. the bills
receiva bic. s.. S21 463. and the cash on hand
S55.3l5,5z1, grand total OF Sl03 406, ,444 In
the list OF assets in the balance sheet was
credit OF inventories amounting Se5,-
603,997 and subjOined tabulation showed
that II Included ores on hand valued at
factured supplies and miscellaneous stores
Sl2.IO.l6l and materials labor and ex-
pense locked up in current uncompleted
bridge contracts. s.. Pos. .361. The current La
bilities on Nov 30 We're stated at $50 26g go
and the surplus OF the corporation nd the
subsidiary companies placed at STA
81 20. The cost of the properties owned
and operated by the several federated COM
panies was given as 81. 49,. .494. .S62
The business OF the companies 4" said the
report. has been put on practically a cash
basis. The losses actually incurred through
bad debts have been very small and little
ii any, loss I'm the collection OF accounts and
notes receivable Is anticipated. About 20
Ter cent Of the total current monthly ac-
counts due from customers Is now being
generally collected within thirty days and
90 maintain the business on strictly cash
basis.
No Inv for A Faith Curisf