New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-03
[. S. STEEL EARNINGS.
WGU Street Interested an Probable
.Sho7cing-EStimQte Made.

Unusual interest IS being taken by Wall Street
in the probable showing % earnings Of the
United States Steel Corporation TO be made IN
the statement which is to be issued by the d.
rectors this week. giving the results OF opera
ton for the three months ended December 81
last. For October. November and December
1901, the corporations net earnings aggregated
S2e.759.912. and for the three months ended De-
cernber 81 1902 they were Ss1.339. 613 That the
net earnings for the quarter Just ended WIFI
fall far below these totals is unquestioned, for
the period has been one Of great dulness and de-
preston IN the iron and steel business & con-
dftion which has led 10 the temporary closing
from time 70 tinne, Of many OF the Steel Cor
poration's plants TO the institution of sweep
ing economies in salaries ana wages-the bene-
hcial effect os which will however. appear only
70 tr1fiing extent in the quarterly statement
now in preparation-and to the reaching out for
foreign markets. in which price concessions
must be made. Although, therefore. the figures
which VIII be presented this week will be small
compared with the results obtained for the cor
responding periods Of 1902 and 1901. the best
opinion in the Street is that some Of the esti-
mates which have recently been put out will be
found TO be much too low
Soon after the figures for the quarter ended
September 80 had been published. semi-oficial
estimate from United States Steel sources gave
S24ooooo0 the probable amount Of the net
earnings fer October, November and December.
A few weeks later. when the depression in the
steel trade had become mere marked. the same
authoritt gave il his opinion that $50 100000
would be the maximum which could be expected,
and would be not far from the mark Estimates
from other sources have since then placed the
earnings at 1000. and even low S13,-
1DODOO. The recent revival of activity in the
steel industry and the ADVANCE of United States
Steel shares in the stock market tend TO rein
force the opinion Of conservative students Of the
situation that these latter estimates much
toe low, and that the net earnings Will be shown
TO be little under S200O0,0o1.
Out of net earnings must come amounts set
aside for sinking fund on bonds Of subsidiary
companies. depreciation and reserve funds these
items aggregating for the last quarter OF lSo-
about Sc 100 600: interest on the corporation S
S304 600 600 bonds, So 5000 and SI6OUo foT
the sinking fund, making total OF SlooSo,VVO'
20 which must be added three months interest,"
on the S1sp0 elOl-0 second mortgage d per
cent bonds (although this item car be only ap-
proximated) which would amount TO Sl,SiO,ob.
the total fixed charges for the quarter thus
being about ST., 565. 600. Assuming that the nes
earnings for the quarter will be Sl9.OS.oOo'
there would remain applicable to dividends the
sum of S6425000 Three months divloeh9 on
the outstanding S350,0@osle0 preferred stock al
per cent would take S6.125,ooo The diVidend
on the $500 og00 600 common at the present rate
OF . per cent year, would require S2.5ooevo
additional. How large part or tne per CeILl
commission Of the bond underwriting syndlcate
IS to be charged against the last quarter net
earnings cannot be estimated
II was authoritatively declared yesterday
that some announcement would be MADE carry
this week respecting the distribution OF extra
dividends on United States Steel preferred 10
the employees of the corporation who subscrloec
under the profit sharing plan. II is understood
that the original plan has undergone some moo
ihcations.