The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1904-07-20

crate campaign against steel in or
er5to smash it down so as 10 bU3
the control at cheap figures Whether
or no icy began such a campaign
E#gt hey suse1 s. ofned IN it with all the
wei ht5 either Untold millions,
But for some months their position
been reversed. They are buyers
$.@of steel common and NOT sellers.
All last week Rockefeller houses
were buliing the steel stocks, a state
sasInent Of earnings for the quarter Was
Issued a couple Of weeks ahead OF the
respected time. The statement was
good. 1t shows net
profits fora quarter which ended with
June of $3.50, 900. For the previous
quarter the net profits We're under
sssI z, 900, 900.
Ess leading banking house in Phiia-
a;t1elphia Ehich has peculiarly close re
Il Iations with Kuhn, Loes & Co. a rec
ognized Rockefeller firm. has violated
asIiearly all of its :precedents and has
urged customers to buy United States
%Sfeel&con1mon. Ordinarily, gilt-edSe
bonds are the only things it advises
tits friends #to purchase. One customer
& bought at$least two thousand shares Of
1.-The common at ten dollars a share, OF
little less. Another customer sold
five hundred shares of the Pennsylva-
mia railroad, which he had owned for
Ia dozen years Some of the proceeds
went into the steel common.
5Ss5I can also be said that a conspicr-
Gus member Of the Pennsylvania rail
road S official family has also been a
U " Indications Of what really first-ratc
accumulation there has been in this
issue.
5i The result of this bull campaign i'll
steel has caused the common to adj
vance from SIS, where it stood on May
58S13. Ito 121 on Saturday. That is g
gain of Virtually 81 a share, or moro
than 8 per cent. on the price if pur-
chased at the lowest figure. Scores
Of thousands of shares changed hands
under SO.
The 5 per. cent. bonds We're once
2sSdoWn&to 65, and now they are above
10 There is no doubt now that tie
company will this month declare the
regular quarterly dividend OF l. 4 per
cent. on the preferred shares.
u These are the outward things that
have taken place in steel. But are
there any reasons for the better ser
timent regarding the greatest Of
trusts2 The last quarterly earnings
were a pleasant surprise Few, if any
one, had expected SO much as $40,
100000. The company has bonded OBJ
legations of S5S5,OO0,O00. To pay the
interest and provide for the sinking
fund requires in round figures $50.
100000 year. The depreciation and
necessary renewal fund are variable
quantities. In fat times they are made
very large. In lean times they have
been cut down Last year these items
that had to be provided for before the
stock could share in the profits
brought the total expenditures up to
something over S53,0OO.0OO.
s5%5 There is outstanding now $500 ,OOO-
900 of preferred stock and the PEI,
cent. dividend requires S25,2O0,OOO. |
The company must earn, therefore. |
about SIS, 100000 net in order to come |
out square with the preferred divi- !
i5dend.
But the sums set aside last year for |
improvements, etc, We're very large |
1T is obvious that in dull times there |
is no money spent for extensions and |
considerably less for necessary re-
neWals. These items are certainly |
less this year than last, even if the |
mills are kept up in the same state Of |
efficiency
VI But in the last quarter the company |
earned net $19,25O,O0o, an equivalent. !
of ST. 100000 a year. At that rate
the regular Il per cent. dividend could
be paid out Of earnings even after dc.
Quoting renewal and Improvement
items. n
The e. fact that the trust has been