The San Francisco call., 1904-03-13
STEEL COMBINE
MAKES REPORT
Net Earnings for 1903 and
the Dividends on Preferred
Stock Show Falling Off
PROPERTY Is IMPROVED
Trade Conditions Materially
Change, Causing a Large
DiminutiOn in the Profits

NEW YORK, March 1.-THE sec
ond annual report OF the United States
steel Corporation. dated March /. is
sued to-day. shows the net earnings
for the year. after deducting expendi-
lures for maintenance and interest on
bonds and fixed charges OF subsidiary
companies, were S1Oe1Z1,152, com
pared with S1S3-20S,762 in 1902.
There was charged OF last year for
depreciation II inventory valuation
and for the adjustment OF sundry ac-
counts S5.37S,S37- The previous year
nothing was charged of 70 this ac-
count
Dividends on the preferred stock in
1903 amounted 10 330,404.I7s, as
against sS5.T20.117 IN 1902.
Undivided profits for 1903 were S12,-
So4.s1s, as against $34,263,65s in
1902.
Payments for account OF common
dividends in 1903 were So, 707, ,562,
compared with S2O.s32.6s0 in 1902.
Il IS declared that the physical con-
ditiOn OF the property has not only
been fully maintained. but greatly i'm
proved and strengthened by these eX-
tensive Outlays.
Regarding the preferred stock con-
version plan, the report said:
Up 10 December 81, 1903, there has
been issued and outstanding United
States Steel Corporation ten sixty-year
3 per cent sinking fund gold bonds,
dated April /, 1903, for the aggregate
principal sum OF Sl52,s02,5 500. These
bonds were issued in payment OF
100000 shares OF preferred stock at
par. as well as in consideration of
S7.177,10O cash received from J. P.
Morgan & Co. for a syndicate, being
part Of so. .O0O, 900 cash receivable IN
der the contract Of April /. 1902, ap-
proved by the stockholders in special
meeting and thereafter sustained by
The courts.
since January. 1904, and up TO the
date Of the writing Of this report, there
have been received from J P. Morgan
q CO. So So. 900 additional on account
Of the aggregate Of S20. 600 900 cash re-
ceivable as above and there have been
issued additional bonds Of a par value
of 907 500. making al this date (March
J. 1s04l a total issue of bonds for the
aggregate principal sum OF S15S O00. .OO0-
Thus the corporation has received from
j. p. Morgan & CO. for the syndicate
SlI. I.008. 600 cash and has delivered ss.000,-
Og8 in bonds. leaving S9. 100000 cash 10
he received and So, ,O0o. 900 bonds TO be
delivered
In the way OF general comment
Chairman /. H. Gary and President W.
I. Corey say:
During the year general trade con-
citions materially changed and the
business OF the subsidiary companies,
In common with the business Of all 9TH
ers. suffered by reason Of the falling of
III orders. 50 soon as IL became evident
70 the directors that there was likely TO
be large diuinution in the net profits
TO BE- realized by way OF dividends from
subsidiary companies it was deemed
wise and prudent 70 reduce the divi-
dends on the common stock Of this
corporation and later for the same rea-
son 70 suspend payment Of dividends
on this stock. In the determination OF
these questions the directors gave care
fuI consideration 10 all the facts and
circumstances bearing upon the sub
ject and due regard 70 the relative
rights and claims Of all who are in
terested in the continuous and perma-
nent success Of the corporation and
the advancement Of its business
on December 81, 1903, the tonnage
of untitled orders on the books was
22l5173 tons Of all kinds Of manufac-
tured products. in comparison with the
tonnage Of 5,347.253 at corresponding
dates in the previous year