The Montgomery advertiser., 1904-03-13
srErL REPORT GIVEN our.
Condition of the Biggest Cooperation
 in WnrId of Finance.

Condition of the Biggest Corporation
 in World of Finance.
 New york. March iz.-The second an. nual report of che United states Steel Corporation, dated March l. was issued today. The statement is a voluminous one. dealing with the income accounts for the year. comparative income .the pre- ferred stock conversion plan. Financial legislations, capital expenditure and de- tailed statement of production It also excludes the certificate of the chartered accountant, showing assets and liabill- ties, together with condensed general profit and Ioss account Net earnings for the year after deducting expenditures for maintenance and interests on bonds and fixed charges of subsidiary com panies were Sl09. f,ls2. compared with s1s5. .76s in loo2 The balance of net earnings for 1908 are sss.s767ss, as against S10s. .S3l.sN in 1902.
 There was e harged off last year for de- preciation in inventory valuation and for the adjustment of sundry accounts B. s7Ss27. The previous year nothing was charged off to this account
 Dividends on the preferred stock in i99 amounted to sao.les.l73 ss against Ss.7A, III in 1902.
 Undivided profits for 1908 were si2,soi,. 31e as against ss4.zsss56.
 Payments for account of common div. dends in 1903 were SIP. 7o7, ,562, compared with s2o,sa2.eso in 1902.
 Reports show the balance of undivided surplus for 1903 of sss, ,o9s,61s. Expendi- lures made by all properties during tie year for maintenance. renewals and ex- traordinary replacemcnts amounted to S24. ,9S1, all of which was charged to current operations. It Is declared tha, the physical conditions of the properties has been not only fully maintained. but greatly improved.
 Regarding the preferred stock conves- zion plan. the report says:
 ITO December s1, 1903, there had been issued and were outstanding United States Steel Corporation to n sixty-year per cent. sinking fund gold bonds datsi 1 April l, 1908, for the aggregate principal sum of Sl52. .s02. 800. These bonds were ls- sued in payment for 1.5oo,000 shares Of preferred stock at par, as we'll as in con- alteration of s7.t77,i0o cash received iron, !. F. Morgan & Co., for syndicate, be 1. Ing part of s20000.000 cash receivable un der the contract of April i, 1902. approved ty the stockholders in special meeting and thereafter sustained by the courts
 Since Jannary 1. 1904, and up to the date of the writing of this report there have been received from J. P. Morgan and Company $3,s2s. 300 additional on account of the aggregate go. .o00. 600 cash receiva- bie as above. and thers have been issued additional bonds of par value of s, ,o97,- 800. making at this date CMarch 1, Isoi) q total issue of bonds for the aggregate principal sum of S15s, ,000.000 Thus the corporation has received from J. P. Mor- gan and Company. for the syndicate sll,- O0O.00o cash and has delivered $s00o,o00 in bonds. leaving ss.o0oO00 cash to be re- ceiyed and Si2,ooo,OOo bonds to be de- livered.
 'sThe corporation has the right at it's option at any time to call for the re- malning S9,000,000 cash, but in order to avoid the unnecessary burden of interest on bonds Issued for money not imme- dlately needed, arrangements have been made with J. P. Morgan and Company, whereby until otherwise provided. the corporation will not be required to call the remaining ss.0oo.ooo cash to deliver bonds therefor. except when and as the cash shall be needed by the corporation. Interest upon these bonds begins to run only as and when the corporation re- ceives cash for them. Under article third, of the contract, Morgan and Com pany. representing tho syndicate, have received or will receive as compensation per cent upon the par value of s17o.00o.- ooo bonds for which there have been sold to and received by the corporation i.50o.- O0o shares of preferred stock at par, be- sides the s2o.0oo.O0o in Cash reserved or receivable as above stated"
 rn the way of general comment Chair man D. H. Gray and W. E. Cory say:
 During the year the general trade con ditions materially changed and the busi- ness of the subsidiary companies In com mon with the business of all others suf- fered by reason of the failing off in or oers. So soon as 1t became evident to the directors that there was likely to be a large diminution in net profits, it was deemed wise and prudent to reduce the dividend on the common stock of this cor poration and later. for the same reason to suspend payment of dividends on the stock. Tn the determination of these the directors gave careful con- sideration to all the facts and circunl- stances bearing upon subject. and due regard to the relaasve rights and claims of all f.t
 "on December sI. 1908. the tonnage of unified orders on the books was s,2ig. i2s tons of all kinds of manufactured pro- ducts fn ConnDnria0u Vvffh tha tanr q ~a