New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-22

The next step is the charges against this total
Of 1873 millions OF net earnings. Part are fixed.
and part are discretionary il amount The lat
ter Is the much discussed charges for 6eprecia-
ton" There are charges outside OF the ordinary
operating expenses" (stated IN the report 70
be about q millions). which include all the cost
OF keeping the great machine in running order
Depreciation CHARGES are the amounts set aside
BY the management to replace machinery. and
represent the annual depreciation by use Of is
working value. Now. it viii be seen that tbs
is largely matter OF Judgment with the mana
gers There is no absolutely fixed rule. nor IN
the nature Of things could there be. The mana
gers Of the Steel Corporation last year ser asds
for depreciation the following:
Depreciation and eztinguishmsnt funds Irregular
E2ztr4araaaTy rsbiaSs5nenJ taads Irregular PRO-
Special tsad for asp.sciat.oa and improve
Te1ts lo'oUo
s29I0sss
1t viii be noted that the last item is q lump
sum thrown in as an extra <und che earnings
OK the year being very large. as against ina
calculated amounts in the other items. Some
small amounts OF & fixed character were added
to the above Total The total Of these appro-
priations. "a millions. beins deducted rom the
sum Of net earnings above stated. left oa4-
snce Of. in round numbers. Sl0S5OOt01
FROM lilaS bdllclLlNG was paw --4e--N~-
sinking funds on the 500 millions 50 called
Carnegie bonds. and the dividends on the stock
After these payments the-s remained sur
plus Of little over Ct millions.
So much explanation OF last years operations
Is necessary 70 understand those Of this yeaG-
The company has officially reported It's ne.
earnings fer three quarters 81 the year az ~
millions An unofficial estimate FOR me az
quarter puts them a. something IN excess Of
"a millions Total FOR the year. rs Millions
tas against 153 last year,
From this sum the deductions rnust De "&~
for the depreciation funds which may be lunps1
together at e5 millions. The resulting SUN ava
able for interest sinking fund ard diviasaas -
wear - 90 millions Assuming that the eOrrahs
pavs out on these three items the same ano---
! as II did last ysar-I4 millions in round n1n-'e
this years surplus would be about ~ m'4n0.s
| We know Of course that the dividend u
| common stock nas been reduced
On this Showing. it NAV Be inferred inv =
present prices OF the stocks are based n0' -
| what the company has earned this year. oui a.
rather a discounting OF the reduced aEo~1'
| may earn next year.
What this may De is. OF course. pure
lecture. rough calculation is possioie u
| optimistic lines. as follows
Le, earnings decrease 10 rs ratio o ne sf 80. o
rl ,Ss "a from this Tor safety Is cent? -e
A' ~ x-Soa~
csarr. sane for depreciation etc. as IN 1900. 49,
~ sss Naos
Surplus interest and dividsnss. 81 soo@
New GSs4 chlrgcs and sirSias lands- $1,000 -
/ '' sssSo~
T,,u stsiasad per can't on preferred after ssNosr
| conversion. about ..-.....s'.-s'-''-"'' .ss
| Everything in the above has eeea Nv nv.
/ AGAINST the company. The result sho"S aug
/ idend on the common, and points -. !, $50
\ ton OF the dividend on the pretsrreI' .,,s.ay
/ indicates the lowest net eaFninss tne IS
| ousht ever to report. CuTHSEfsh
| They ARE AFTER HIN
| Furnished room people who have GO 80" .ssr sho .
| A.. r.rA ~. alnrnrs .frer the trinnr,f - A. -