Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-10-07
REASON FOR CUT
Decreased Business Cause of
Reduction in Dividends on
Steel Stock.
FIGURES GIVEN TO PROVE IT
Evidence That Standard Oil and
Morgan Interests are Not
at Variance.

New York. Get. THE dividend ON
the common stock of the United States
Steel Corporation for the last quarter
has been reduced from l per cent. to
one-half of l per cent, thus setting ut
rest Il matter that has asitated Wall
street and financial circles generally
for many weeks. To quote Il very
high authority in the affairs of the
corporation, the action of the board
was unanimous and was caused by
the falling off of business" This last
is borne out by the financial statement
issued shortly after the meeting. The
statement shows a decrease of 81, ,642,-
66S September eStimated) for the third
quarter of the calendar year, compared
with the same period last year and
decrease of $4,339, ,4S7, compared with
the preceding quarter of this year.
Cut Was Clearly Indicated.
On Oct l. 1902. the corporation had
untitled orders of 4, 4,S4a.0O0 tons Oh
hand. This year the untitled orders on
the same date amounted to 3,72S, 742
tons. The course of steel common in
the last few months clearly indicated
that this cut of the dividend has been
largely discounted. In fact wagers
that the dividend would be reduced
were plentiful recently, and there were
predictions that it would be passed
completely. Nevertheless, this action
came as Il surprise to many who ar
gued that it would be impOlitic to
make any change at this particular
time.
Rockefeller Not at the Meeting.
The Importance of this meeting
which was preceded by that of the
finance committee, was emphasized by
the attendance of nineteen of the twen-
ty-four directors, including j. L. Nor
gan, whose presence at these meetings
has been very rare. Among the alb
sentees We're John ID. Rockefellr aud
his son John D., Jr., William II. Moore
and Marshall Field, of Chicago. The
absence of the Rockefellers was the
subject of some comment, because of
the rUmOrs industriOusly circulated for
weeks past that the Standard Oil fac
tion had arrayed itself against Nor
gan and his friends and would hold
out for a. reduced dividend.
Rumors Prove To BE Wrong.
The unanimous action of the board
on this point, however, disposed of
these rumOrs. The session of the di-
rectOrs was a brief one. The printed
statement of Comptroller Filbert, given
out directly after the directors meet
ing, was proof that the action had
been determined some hours In ad-
vance of the meeting. The regular
dividend of ia per. cent. on the pre-
ferred stock was declared. This divi-
dend is payable Nov. Is. The dividend
on the common stock is payable Dec.
80.
Statement for Nine Months.
The statement for the nine months
gives total net earnings, after month
ly deductions for repairs. renewals,
maintenance and interest OH bonds and
fixed charges of the subsidiary COM
panies, $94, ,O13, ,S36. Deducting amounts
for sinking funds on bonds of sub
sidiary companies, and depreciation
and reserve funds. brings the net earn
inGs down to $S2.211 ,692. \ further
deduction of interest on the corpora
tons bonds. including the sinking
funds. leaves a balance of $65,97S,217
Dividends on the preferred and COM
mon shares for the nine months aggre-
gate $3G629,47 leaving a balance of
undivided profits or surplus for that
period of $29, ,34S, 742.