The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-07-16
PROFITS ARE
$l40.000,0O0
Charles Schwab TestiheS to
Value of Steel Properties.
FIGURES ARE AMAZING
Company Also Owns 1867
Miles of Railway.

Newark. y. J., July l5.-The answer
Of 5be United States Steel corporation
70 the suit designed 10 prevent the SEQ.
ooo0oo bond conversion plan. brought BY
J. spinwan Hodge. William H Curtis
and Bernard Smith. was fled today. Til,
suit Is based on the contention that the
corporation assets Go not equal the
amount of its preferred stock. and that
therefore. it cannot proceed as intended.
under the act OF 1902 lie answer.
which is supported by an affidavit OF
Charles schwab. states that the assets
wiz amount to the entire stock. bonds.
common and preferred. OF more than.
s.. 40. Co. 600 Mr.. Schwab in his affidavit
maintains that his position is such as 10
give him knowledge OF the actual worth
OF the properties and lists his estimates
OF their value. He says among othes
things that the earnings Of the corpora
ton in The fifteen months OF its existence
have been in excess OF 10 per cent Of
the entire capital stock.
Mr. Schwab's answer contains the fol
lowing statement OF the value OF the
corporations property which estimate
he regards as below its real value;
Iron and bessemer ore properties. s7oo.-
Ooo.o00
Plants. mills. fixtures. machinery.
equipment. tools and real estate. 800 Co.,
90
Coal and coke fields fs7.sss acresD. goo
Oo00oo
Transportation properties. including
railroads Q,4s7 niles. terminals. docks.
ships Gl2). equipment 231S cars and As
locomotives. etc. 5000. Go.
Blast furnaces. S4S. GO. 90.
Natural gas feld. s20.o0o. cse
Limestone properties. 81 oC,0o0
Cash and cash assets on June !. 1902.
sl4S. 81. 90.
Total. 81. 400 %. 900.
Mr.. Schwab calls attention 10 the value
Of $50 oao, co placed on the Carnegie prop
critics as a result Of the Frick litigation
1t is set forth also that the present hxeo
charges Of the United States Steel cor
porauon are 80 per cent per annum Oh
1916. 1890 Of bonds an annual sinking
fund OF 100000 making an annuai
charge OF SIS %. SO; and that when the
proposed issue Of second mortgage bonds
is outstanding. namely go 90 co0. at 5
per cent together with an annual sink
ing fund OF N.Oloeoo the total fixed
charges OF the United States Steel cor
poration for interest and bond sinking
funds will be 81 7s7. $50. 10 provide which
Mr.. Schwab says the corporation IS nov
earning at the rate Of Sl40,cOoooo per an
mum net.
The profits OF the United States Steef
corporation. the AFFIDAVIT continues.
could be reduced more than . per
cent and there would sim be ample funds
10 pay the interest and sinking funds
upon the first and second mortgage
bonds. Instead OF margin Of per cent
as minated IN the affidavit of smith
there IS margin Of % per cent be.
fore the solvency OF financial ability "
the steel corporation can possibly be
questioned"
Other afidavits corroborauve Of Mr.
Schwab's estimate on the cornpany's
properties were presented By Albert II
Clay. chairman Of the corporations ex
ecutive committee: James Gayiey. VIC
president; John Birkinbine, a consulting
engineer; Thomas Lynch. president Oh
the H C. Frick Coke company: William,
Nelson Page. president Of the Gaule,
Mountain Coal company. James II. Deed.
president Of the Pittsburg. Besserer-
and Lake Erie railroad company. and
Richard Tribe. secretary Of the United
States Steel corporation