New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-21
u. S. STEEL AFFAIRS.
Neac Orders HeaUy and No Need
for Issue Of Notes.

The rumor that the United States Steel Cor
poration will issue notes is officially denied by
interests identified with the company. An issue
OF bonds. stocks notes has not been consid-
cred, it is said. for the good reason that the
corporation has enough cash on hand at present
to meet all requirements incident to the growth
of its business, including it's new construction
work at Gary, Ind. The United States Steel
Corporation is in better condition in the matter
Of cash resources than any corporation in the
world. its actual cash hand and on deposit
with banks and trust companies at the present
time being In the neighborhood of $75O00OOO
This does not include sundry marketable bonds
and stocks aggregating s7.720.O0O. or loans on
collateral aggregating $7600,OOO.
The United States Steel Corporation De-
cember 81. 1906. had an unexpended balance on
account of special construction for the Gary
plant OF nearly $27.O00000 and an unexpended
balance In connection with its general construc-
ito fund OF more than So, 600, 600 making a total
of $30.000,0O0. Since then there has been ap
propriated $14 100000 account Of expendi-
lures made and to be made on authorized ap-
preparations for additional property, making a
total of nearly S45.OO0OO0. Naturally per-
centage of this total was expended for new con-
struction in the first quarter Of this year. put
the balance remaining is sufficient to meet us
entire expenditures for new CONSTRUCTION Ills
year. If earnings continue to be as large as
they have been since the first of the year, ap-
preparations for new construction in 1907 will
run very close TO S60.OO0.0O0. From this it can
be assumed that on Januarg' the balance for
new construction will be as large as on January
1 of this year. In brief the steel corporation
Is making these vast appropriations for new
construction and at the same time credlting sew
eral million dollars each quarter to surplus. For
example, in the first quarter of this year there
was balance of surplus of nearly S3,7OO,O0o
after appropriations Of $14,5O0OOO for new con-
struction.
Since March l business booked by the
steel corporation has been well in excess Of the
corresponding time last year. and orders taken
since May / have been unusually heavy FOR that
period. Untitled business usually shows q fail
ing off in the first half of the year under normal
conditions For example, from December /,
1905 to March 81. 1906. there was falling off
of 600. 900 tons in untitled tonnage. From March
81. 1906 to June 30. 1906. there was a falling
off of more than 100000 tons. Untitled tonnage
under normal conditions always runs larger in
the last half of the year than in the first half
According to a representative of the United
States Steel Corporation. the Gary plant is ex-
pected to produce open hearth steel rails IN
July, 1908. when 1t viii have an estimated ca
pacity of between 100000 and l O0o GOO tons
a year. The building Of the Duluth, Mimi.
sible George Refs. who constructed the Staten
Island steel plant for Mliken Brothers will
superintend the construction work Of the Duluth
plant.