The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1903-10-07
STEEL DIVIDEND REDUCED
THAT ON THE COMMON STOCK
CUT IN TWO.

Action OF the Board Due to Falling on
ia Business-Natter Has AgiIsted Wall
Street for veeks-ApparentIy No
Rrsak Between the RockefelIers and
j. p. Morgan. 81.
New York, Oct. 6.-The dividend on
the common stock of the United States
Steel corporation for the last quarter
was to-day reduced from per cent. to
Y of per cent. thus setting at rest
matter that has agitated Wall street
and financial circles generally for many
years. We quite a very high authority
in the affairs of the corporation. "the
action of the board was unanimous and
was caused by the falling off of busi-
ness" -4
This is borne out by the financial
statement issued shortly after the meet
ing. The statement shows a decrease
of $4,642.66S (September estimate) for
the third quarter of the calendar year,
compared with the same period last
year and a decrease of $4,S3s, ,4S7 com
pared with the preceding quarter of this
year. On October /, 1909. the corpora
tion had untitled orders of 4,S43,000 tons
on hand. This year the untitled orders
on the same date amounted to 3.72S.
tons. ~.
The course of steel common in the
last few months clearly indicated that
to-day's cut had been generally espect-
ed. Nevertheless to-day's action came
as a surprise to many who argued
that It would be impolite to make any
change at this particular time.
The Importance OF to-day's meeting.
which was preceded by that of the
| finance committee. was emphasized by
the attendance of nineteen out Of the
twenty-four directors, including J. P.l
Morgan, whose presence at these meet
ings has been very rare. Among the
absentees were John D. Rockefeller and
his son. John d., jr.
The absence of the Rockefellers was
the subject Of some comment because
| of the rumors circulated for weeks past
that the Standard Oil faction had ar
rayed itself against Mr.. Morgan and his
friends and would hold out for re-
lduced dividend. The unanimous action
4 of the board on this point, however, dis
posed of these runors. The session of
the directors was brief one The
printed statement of Comptroller FIJI
bert, giving out directly after the die
rectors' meeting was proof that to-day's
faction had been determined some hours
in advance of the meeting.
The regular dividend Of 1% per cent.
on the preferred stock was declared.
This dividend is payable November is.
The dividend on the common stock is
payable December 80. -
4 The statement for the nine months
gives total net earnings, after monthly
deductions for repairs, renewals, main
tenance and interest on bonds and fixed
charges Of the subsidiary companies
s94,o1a,836. Deductihg amounts for sink
| ing funds on bonds of subsidiary COM
panies and depreciation and reserve
funds on bonds Of subsidiary compan-
les and depreciation and reserve funds
4 brings the net earnings down to $S2,21f,-
692. %
| A further reduction of interest on the
corporations bonds, including thet sink
| ing funds, leaves balance of $65, ,g78, PIT.
Dividends on the preferred and common
shares FOR the nine months aggregate
| $50, ,629, 475, leaving a balance of undivid-
ed profits or surplus for that period Of
$2a, ,34S. .742
Trading in the Steel stocks was the
chief feature Of the market. The COM
mon stock sold as low as 16s, advanced
a full point from that figure and closed
at 17ss, fractional net gain. The pre-
ferred stock on heavier transactions
sold as high as 66, but closed at 64M, a
point gain on the day. Dealings in the
sinking fund bonds were in very large
volume. the price ranging from II to
72A. III
4 A little more than three months ago
just before the last regular dividend on
Steel common was declared. that stock
sold around 80. Since then it has sold
as low as 14B.
The official statement of net earnings
for the quarter (September estimated
shows:
| July, s12,3s4,s47: August, s1o,s1s, ,174:
September, Se.000,00o.
i ------ d..