Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-05
STEEL CORPORATION
DIRECTORS TO MEET TODAY AT
PTTTsBURG.
Dividend Expected on Preferred, but
to Be Passed on Common Stock
Speculation as to Future.

The directors Of the United States Steel
Corporation meet today at Pittsburg to
take action on the dividends on the common
and preferred stocks for the current quar-
ter 1t Is the expectation of well-informed
representatives of the steel and iron In
dustries that the directors will pass the
dividend on the common stock and declare
the regular quarterly dividend of IA per
cent on the preferred The directors will
also discuss the demands of the non-union
steel workers at the Carnegie mills re-
garding the proposed heavy wage reduc-
ton which goes into effect this month. A
threat to strike from these men has caused
considerable uneasiness among the officers
of the corporal ton, but has had no especial
effect on the market price of the securities.
Speculation has been active in the pre-
ferred stock. while common has called forth
but comparatively small transaction.
The market price of preferred has indi-
Gated that dividend would be declared to-
day, while the price of common has just
as clearly indicated that there will be no
dividend this class. The taking of this
class out of the dividend column 1t Is be-
lieved. would not result in any lower price
than the present quotation. With regard
to the preferred stock. which is now selling
at a rate which yields II per cent divi-
opinion is that the price will gradually
work to a higher level unless the earnings
of the company should show a severe
shrinkage on the year just closed.
Orders Already Booked.
AS regards the coming year estimates
made by men prominent in the iron and
steel trade indicate that orders already
booked for steel rails aggregate about one
third of the capacity of the mills. AT this
time last year the orders for the twelve
months following amounted to more than
wo-thirdS the capacity of the plants. the
official price of rails for 1904 has been
placed at the same figure as for 1903. There
is said to be little chance Of large contracts
being placed at the price, however. The
Lackawanna Steel Company and the Penn
sylvania Steel Company are now serious
competing factors in the steel rail- situation,
and the United States Steel Corporation
will naturally have to face more or less
serious inroads from these quarters.
1t is stated that some of the Independents
are cutting prices, while the corporation
is maintaining its schedule. The cut prices
relate almost exclusively to tin plate and
sheet steel. and are excused on the ground
that they are necessary in order to keep
operating. The cost of production this
year is to be much lower than heretofore,
for cut rates in wages have been noted al
most universally throughout the steel
region. All these things are said to indi-
cate that prices on steel products quoted at
this time will hardly be maintained
Influence of Presidential Year.
In financial circles discussion Of the presi-
Dental year as an influence on the steel
trade has caused some interesting reminis-
cences of the last months of 1896 and the
earlier months of 1897, following the first
election of the late President Mckinley.
The election was followed by resumption
of many mills and factories. but the alb
sorbing capacity of the country, after thu
leng period of depression, was over-esu-
mated and the situation soon became as
acute as previously 1t will be remembered
that in the spring elections in 1897 the
Democrats were successful in numerous
towns and cities which the republicans had
carried few months before by large ma
jorities. 1t was not until later in the same
year. when prices of iron and steel com
moditieS were severely cut, that business
showed marked Improvement. In private
conversation, manufacturers have been re-
ferring to conditions then and now, though
at the same time recalling that 1897 fcl-
lowed four years of depression and limited
consumption. while 1903 followed five years
of unrivalled prosperity and unprecedented
production.
Results May Be Kept Secret.
There has been much interest in the re-
mort that financial results of the Steel Cor