The diamond drill., 1903-08-22

Ansuincicnt III tne operation requires
half century. In the latter case,
the burden OF maintaining interest and
dividends ON the securities would fall
largely on the manufacturing plants.
and that they would be unable to stand
this burden has very properly been the
fear OF those who doubted the cor
poration's success. The reasoning as
applied to ore applies equally to COX
ing coal, in its minor Importance.
A summary of the various appropria-
tions OF the steel corporation and the
surplus accumulated in two years and
three months shows that so far the
realizations have been extremely liber-
al 10 take up the proportion of minerals
exhausted. Condensing into one item
the sinking funds against bonds Of
subsidiary companies the u. s. Steel
first 5's, the depreciation and ex-
tinguishment funds, the extraordinary
replacement funds, and the special de-
probation and improvement fund. and
adding the surplus currently ac
cumulated, we have the following
All appropriations for sinking fund
and depreciation. Current surplus.
1901, nine months $11. ,95S. 904
$40, 414. 497
1902, calendar year 1854, 39S
3, 253, 567
1908. first half s,9O5, 229 II, O37, O47
Total, % months $4S, 67S, 6s2
$40, 700, POI
Annual average s2l. 834, 97O s31, 494, 5s4
81, 634, $40
Total annual average S53, O59, 5O4
This total annual average of $53, :
600, 600 is arrived at after over SEQ, :
600, 600 year was spent on ordinary
repairs and maintenance, and after all
interest and dividend charges against
all securities and all other expenses
were fully met The figures here pre-
sented are taken from reports which
are succinctly certified to by the
chartered accountants, and az to the
accuracy of which no question has been
raised in any quarter Roughly speak
ing, the amount is sufficient to replace,
by manufacturing plants, about two
and half times the book valne of the
mineral properties annually exhausted.
Comparing this $53 900, 900 with the
total securitis of about ST. 400, 900, 900,
there is found a ratio Of l to 26. A.
A deposit table shows that one dollar,
deposited each year, with compound
interest at per cent, will equal in
II years S27. 49, SO that if $53, 600, 600
is invested in properties each year,
earning only 3 per cent the whole
81. 400, 900, 900 will be equaled. The
period Of IL years in which manufact-
uring properties can be duplicated may
be considered rather long but there is
ample provision against this in that
the computation is based on no rate of
increase in ore mined, which would
carry the ore for A years, whereas it
is figured as duplicated in IL years.
Nor is it fair TO assume that the cor
poration cannot spend it's money to
better advantage in manufacturing
properties than to have it earn only B
per cent annually
The position of the steel corporation
therefore is that, much more rapidly
than its own public utterances would
indicate, it is converting its unwiedly
and highly valued mineral propertie.
into current paying investments It's
future hangs, not upon the develop
ments Of half a century. but on the
developments Of say, another decade
A very few years will place it in an
impregnable position or will seriously
involve it. Instead of being a new
and untried experiment it seems al
ready to have fought with singal sue
cess a third or fourth OF its life bat
tie.