The Providence news. (Providence [R.I.]) 1891-1906, 1902-01-30
STEEL TRUSTS
BIG EARNINGS.
Net Profits for Nine Months
Rsachsd Total Of S84,779,298
BUSINESS ON A CASH BASS.
Amount Set Aside for Profit and Loss Is
$3,566,775-fruspscls for III, Future
Are Exceedingly Bright
BUSINESS ON A CASH BASS.

New York. Jan. 90--A very favorable
showing Is made In the preliminary re-
port to the stockholders OF the United
states Steel corporation, TO be- submitted
~ the inst annual meeting Of the corpor-
alton on Feb. IL.
The report exhibits, SO far Ar possible
Tho operations for the nine months end
ing Dec. 81. 1901 II is signed by Charles
M Schwah as pYrfident and by Eibert n.
GARY as chairman Of the executive COM
rnittee. The board OF directors has deter
mined that the fiscal year, instead OF run
ming from April 10 April. shall correspond
with the calendar year, and In order 10
give sufficient time for the preparation
Of annual reports 10 stockholders the by
laws have been amended 50 - TO pro-
vide that future annual meetings shall
be held in April
Eight directors whose terms are about
10 expire. being those of the nrst of the
three classes namely. Marshall Field.
Daniel G. Reid John ID. Rockefeller, Jr..
Alfred clinord, William r. Dodge. Ma
thsniei Thayer. Abram y. hewitt and
Clement A. Griscom. will be candidates
for recollection at the annual meeting. The
report continues:
ON CASH bASlS
The business az tho companies has been
put on practically cash basis. The
losses actually incurred through bad
debts have been very small and little, or
any loss IN the collection of accounts and
notes receivable is anticipated.
About 20 per cent OF the total current
monthly accounts due from customers II
now being generally collected within 10
days and Il is the offort OF the several
mana eements Co maintain the business
on a strictly cash basis.
The report contains the same statement
of net earnings for the nine months end
ing Dec. 81. 1901. which bas already been
made public. showing. after charging 20
operating expenses month by month all
current renewals and ordinary repairs for
maintenance OF plants total net earnings
of the several companies amounting 10
s4.1.o.2ag
The date OF this report renders IL i'm
practicable to give complete balance
sheet az OF Dec. 81. 1901. and consequent
ly balance sheet showing the condition
of the companies on Nov. 20. 1901. 10 SUBJ
mittcd. 7, exhibits the assets and liabili-
ties represented by the capital stocks of
fhe corporation ard by outstanding stocks
of subsidiary companies except that. for
simplicity, II onits Indebtedness from one
company 90 another, az such sums.
though assets of one company are liahili-
ties OF some ether company.
STATEMENT or CONDITION.
The balance sheet. somewhat oon-
flensed. Follows:
ASSETS
Property account: Cost or
properties owned and or
rrated by the several a., -.
companies ................... N,45f f%.ss -
hnd loss .............'...... s25e.7il %
INVESTMENTS.
Outside real estate and
other property ..........+.. i@s.6l3 .
Current assets. including
inventories. bills receiv
able and cash............-.. 3t,2bl,fI a.
Total ssst,ts. N.a7.4Ia,o,l g.
LIABILITIES
Capital stock of United
states Steel corporation. 81 .g2 10
Capital stock of subsid-
iarv companies not held
by United States Steel
corporation lpar value. fll.925 NJ
Bonded and debs nture debt 362 S@l $50 y
Afortgagcs and purchase
nonfy obligations (suh-
ridiary C,omDa nfcst.-..... ls.iSs. lW ~
current liabiiities ... 5o,sea.esc Is
Contingent liability. Pey-
tention 'i of leases, -. ssSsss g.
Sinking funds and rr-
serves for depreciation. y sSe.oO 81
surplus ~ United States
Stetl corporation ana
subsidiary companies. fi.A4,2z9 -
Total ....................... S1Gi7, ii50zl *
The business outlook Is thus referred
10. The outlook for the year 1902 Is very
bright. Everything indicates that all or
the facilities of each subsidiary company
~fll be taxed 70 their utmost 90 supply
fhe demand that Is being made rhe
actual business now booked and of which
e. Nsft4 foV nafg
81 can b. supplied amounts 70 more than
half the total combined annual capacity
of all the companies.
The heavier products. like rails. billets
plates and structural material. ars sold
up 90 the productive capacity % She mills
until nearly the end cf the year. In the
more finished products the consumption
in each case Is greater now than al tho
corresponding period in 1901, rhich IL
should be remembered. was an alb
normally heavy year.
rhe expectation. therefore. Of those
rlasely connected with the manufacture
and sale Of these highly finished products
T. for demand larger than thar Of 1901
and w to the limit Of production
PRICE POLICY.
The report says as 10 "poIicv IS 20
prices The demand for the products
~ Tie several companies has oton so
grest that prices could easily hove been
advanced Indeed. higher prices have
been voluntarily offered BY consumers
who were anxious for immediate exeou-
sion OF orders. but the companies have
firmly maintained the position Of not sd-
yancine prices. believing that the existing
prices were sufficient 10 yield fair re-
turn on capitol and maintain the proper.
ties In satisfactory physical condition. and
tbst tho many collsterai advantages :,
be gained IN the Ions run by refusing q
advance prices would be OF substantial
snd lasting value. not only 20 the com
panies, but also TO the general business
Interests of the country.
The strong position thus taken by tn
companies for stability In prices. both .