The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-10-07
DIVIDEND WAS CUT
QUARTERLY PAYMENT ON COMMON
STEEL REDUCED A HALF.
DECISION NOT UNEXPECTED.
MANY THINK IT IMPOLITIC TO
MAKE MOVE NOW.

action OF Board Unanimous and
Prompted by Falling on in Bust
ness-J. II. Morgan Present at
Meeting of Finance Committee.
Regular Dividend Declared on
Preferred StOck-SteeI CompanY's
Undivided Profits for Nine Months
Were, Net, $29,34S,742-Trading In
Steel Chief Feature of Yesterdays
Market.
New York, Oct 6.-The dividend on
the common stock of the United States
Steel Corporation for the last quarter
to-day was reduced from / per cent.
to one half of one per cent. thus set
ting at rest a matter that has agitat-
ed Wall street, and financial circles
generally for many weeks.
To quote a very high authority in
the affairs of the corporation, the ac-
ton of the board was unanimous, and
was caused by the falling off of bust
ness"
The course of steel common in the
last few months, clearly indicated that
to-days cut has been largely discount
ed. In fact, wagers that the dividend
would be reduced were entiful re-
Gently, and there were predictions that
it would be passed completely. Never
theless to-day's action came as a sur
prise to many, who argued that it
would be impolitic to make any change
at this particular time.
Morgan mt Meeting,
The Importance of to-days meeting
which was preceded by that of the FL
nance Committee, was emphasized by
the attendance of nineteen out of the
twenty-four directors, including j. P.
Morgan, whose presence at these meet
ings has been very rare. Among the
absentees were John D. Rockefeller,
and his son, John D., Jr., William
H. Moore and Marshall Field of Chi
eago.
The absence of the RockefelleFs was
the subject of some comment, because
of the rumors industriously eirculat-
ed for weeks past that the Standard
Oil faction had arrayed itself against
Mr.. Morgan, and his friends, and would
unanimous action of the board on this
point, however, disposes of these ru-
mors. ~s,- ~ss
The regular dividend of tx per cent.
on the preferred stock was declared.
This dividend is payable Nov. l6. The
dividend on the common stock is pay
able. Dec. 30
The statement for the nine months
gives total net earnings, after month";
" deductions for repairs, renewals s.
maintenance, and interest on BONDS,
and fixed charges of the subs diary
companies $94,013,SS Deducting
amounts for sinking funds on bonds
of subsidiary companies, and depre-
citation. and reserve funds brings the
net earnings down to $S2,211,692.
further deduction of interest on
the cornoration bonds, including the
sinking funds, leaves a balance OF $65,-
as 1T. Dividends on the preferred
and common shares for the nine months
aggregates $36, 629675, leaving bal
ance of undivided profits or surplus Tor
that period of $29,34S,742.
Trading in the steel stocks was the
chief feature of the market. The com
mon stock sold as low as 1873, ad-
vanced a full point from that figure.
and closed at 17ss, fractional net
gain. The preferred stock. on heavier
transactions, sold as high as 66. but
closed at 64k, a 1 point gain on the
day. Dealings in the sinking FUND
bonds were in very large volume, the
price ranging from II to TN.
little more than three months ago.
lust before the last regular dividend on
steel common was declared, that stock
sold around 30. Since then 1t has sold
as low as 14H.
The official statement of net earnings
for the quarter (September, estimated)
shows: July, s123S4, 647 August, &c.
e1S174: September, $4,000, 900.