The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-13
REPORT OF u. s. STEEL CO.
NET EARNINGS LAST YEAR
AMOUNTED TO $IO3,I71,I52.
Undivided Profits in 1909 Were Si2.-
,562, as with
S2O,332,G9O i'm 1902.

NEW York. March R-The second annual
report Of the United States Steel Corporation.
dated March l.. was issued to-day. The state
ment is a voluminous one. dealing with the in
come accounts for the year. comparative income,
the preferred stock conversion plan. financial OBJ
legations. capital expenditures and a detailed
statement OF production.
1t also includes the certificate Of the chartered
accountant, showing assets and liabilities. to-
gether with a condensed general profit and loss
account.
Net earnings for the year. after deducting ex-
penditures for maintenance and interest on bonds
and fixed charges OF subsidiary companies. were
Sl0s,171,152. compared with 1888, SOs. 763 in 1902.
The balance Of net earnings for 1902 was $685.
7s6. as against Sos. 534. 34 in 1902.
There was charged of last year for deprecia-
ton in inventory valuation and for the adjust
ment of sundry accounts s.. s7S. s37. The previous
year nothing was charged off TO this account.
Dlvldends on the preferred stock in 1913 amount
ed TO so, A4.l'3. as against $50, 40, III in 1902.
Undivided profits for 1903 were So, SO4, sl6. as
against $34. 263. CSC.
Payments for account of common dividends in
1899 1899 were 'ia' 'o7' 'Ss' compared with $40 1872 $50 in
Reports show the balance of undivided surplus
for 1903 Of $66, O96, elS.
Expenditures made by all properties during the
year for maintenance, renewals and extraordi-
nary requirements amounted TO S4,iSo,lSl, all OF
Which was charged 10 current operations II IS
declared that the physical condition of the prop
tIllcS mas Deen not only July maintained. out
greatly improved and strengthened by these ex-
tensive OUTLAWS.
PREFERRED STOCK CONVERSION.
Regarding the preferred stock conversion plan
the report says:
up to Dec. 81. 1903. there had been issued and
were outstanding United states Steel Corporation
ten siXty-year 5 per cent. sinking-fund gold
bonds dated April l. 1903. for the aggregate prin-
sued in payment for l,5Oo,O 900 shares of preferred
stock at par. as well as in consideration Of
xT1T1 % cash received from = MORGAN a
Co. for a syndicate, being part Of $40. 900, 900 cash
receivable under the contract of April l, 1892,
approved by the stockholders in special meeting
and thereafter sustained by the courts.
Since Jan. !, 1904, and up TO the date of the
writing of this report there have been received
from J: p: Morgan & co. sS.S22 900 additional on
ceiyable as above and there have been issued
additional bonds of a par value Of $5,O97, 500, max
ing at this date March l. 1904, a total issue of
bonds for the aggregate principal sum Of $l5S, 00O,-
600. Thus the corporation has received from ].
CASH M9 a ! has d eH; IoF 81 sae coo s S1o = iG bon 81 OG IesyO
ing $9,OOO,OOO cash TO be received and S2, 000, 900
bonds to be delivered.
The corporation has the right at its option at
any time TO call. for the remaining 100000 cash,
but in order to avoid the unnecessary burden OF
interest upon bonds issued for money not imme-
diately needed arrangements have been made
with J. +: Morgan q Co. whereby, until other
wise provided, the corporation will not be re-
quired to call the remaining $1,000. 600 cash. or TO
deliver bonds therefor except when and as the
est upon these bonds begins TO run only as and
when the corporation receives cash for them.
Under Article 3 Of the contract Morgan & Co,
representing the syndicate. have received. or will
receive aso som y ! per cent; upon the
been sold 10 and received by the corporation
1900 800 shares of preferred stock at par, besides
the $50. coo. 900 in cash received or receivable, as
above stated
COMMENT OF GARY AND COREY.
In the way Of general comment Chairman E.
II. Gary and President W. E. Corey say:
During the year the general trade conditions
materially changed. and the business of the sub
sidiary companies, together with the business OF
all others, suffered as a result of the falling off
in orders. The effect in profits has been shown
accurately from time TO time in the published
statements. So soon as IL became evident TO the
directors that there was likely 10 be a large dim
mutton in the net profits TO be realized by way
OF dividends from subsidiary companies II was
deemed wise and prudent to reduce the dividend
on the common stock Of this corporation. and
later, for the same reason. TO suspend payment
! of dividend on this stock.
I'm the determination Of these questions the
directors gave careful consideration 10 all the
facts and circumstances bearing on the subject,
of all who are interested in the continuous and
permanent success Of the corporation and the
advancement of its business.
ION Dec. 81, 1903, the tonnage of untitled or
ders on the books was 3. 215. l23Itons OF all kinds
oS manufactured products in comparison with
the tonnage Of 5.347, 23 at corresponding dates In
the previous year.
Occasionally publications are made concern
ing the affairs or earnings or results of the bust
ness Of the corporation. which are stated TO be
based on information derived from an official
or director or one identified with the corpora
ton or from inside sources Obviously IL would
be inexpedient 10 undertake to contradict or ex-
plain statements of this kind, even though mac
curate and unreliable. From time to time intor-
nation relating TO the affairs Of the corporation
is given out by the officials for publication. but
il is the rule in such cases to accompany the
statement with the name or office of the oflcial
making the statement, and no publication should
be considered authoritative unless so identified