The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-10-14
SQUEEZING OUT THE WATER.
The Steel Trust Gut Down Divi-
dends One Half.
Action Taken Was Unanimous.
Most of the Directors, lncIud-
ing ]. Pierpont Morgan, We're
Present---"FalIing Off of
Business"

New York, Oct. 6.-The dividend
on the common stock of the United
States Steel corporation for the last
quarter was today reduced from l per
cent, to one-haf of l per cent. thus
setting at rest 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 action Of the
board was unanimous and was caused
by the falling off of business. The
course of steel, common, in the last few
months, clearly indicated that today's
cut 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 to-
days action came as surprise to many
who argued that it would be impolitic
to make any change at this particular
time.
The Importance of today's meeting,
which was preceded by that of the fin
ance committee, was emphasized by
the attendance of 19 Of the "a direct
ors, including j. P. Morgan, whose
presence at these meetings has been
very rare. Among the absentees we're
John D. Rockefeller and his son, John
D., Jr., VIM. 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 faction had ar
rayed itself against Mr.. Morgan and
his friends and it was said would hold
out for reduction. The unanimous
action of the board on this point, how
ever, disposed of these rumors.
The regular dividend of 134 per cent
on the preferred stock was declared.
This dividend is payable Nov. 18th.
The dividend on the common stock is
payable Dec. 30th.
The statement for the nine months
gives total net earnings, after month
ly deductions for repairs, renewals,
maintenance, interest on bonds and
fixed charges of the subsidiary compa-
nies of s94, 013, 1885, Deducting
amounts for sinking funds on bonds
Of subsidiary companies and deprecia-
tion and reserve funds brings the net
earnings down to S92, 21l, 692. A fur
ther deduction of interest Oh the cor
poration bonds including the sinking
funds, leaves balance of s65, 978, 217
Dividends on the preferred and COM
mon stock shares for the nine months,
aggregate s36, 629. Ats, leaving bal
ance of undivided profits or surplus
for that period of s29, 348, 745,
The official statement of net earn
ings for the quarter (September esti-
mated) shows July S12,384, ,647; Aug
ust s1O,91s, ia; September So, 600, 600.
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 173s, a fractional net gain.
The preferred stock on heavier trans
actions, sold as highs IS, but closed
at 64K, one point gain on the day.
Dealings in the sinking fund bonds
were in very large volume, the price
ranging from l to 7234.
A little more than three months
ago, just before the last regular divi
dend on steel common was declared,
that stock sold around 80. Since then
- has soid as log as 1472.