New-York tribune., 1907-04-24
STEEL'S BIG EARNINGS
FIRST QUARTER REPORT.
Total Cash Surplus of Corporation
More then 10000 900.

The statement of earnings of the United states
Steel Corporation for the quarter ended on
March 81. which Will he made public after the
meeting of the directors next Tuesday. will bring
its total cash surplus to more than S100000O00
Net earnings. # is estimated. will amount 10
more than S405OOO0O. compared with S36,634,
400 in the corresponding quarter last year and
sl3.445. .23l in 1905 leaving a large surplus
available for dividends.
on March 81 the big steel corporation COM
pleted the first six years Of fits existence At the
time Of its organization the prediction was free
~ made in many quarters that the concern
would not last five years, and that the property
would revert TO the bondholders at the end Of
that time Instead Of this. however, the cor
porat.on has increased in strength both fnan-
ciall and physically and has accomplished bet
ter results than even expected by its optimistic
promoters.
In the six years ended March 81 the last quar-
ter earnings estimated in part the United states
Steel Corporation has earned net SIlI ISoo9G4' OF
at the rate Of Sill, 100000 year, an average OF
S44 623.479 in excess Of the smallest year IN the
history of the company. in 1904. when SI31T6,-
52l was reported. There has been spent by the
corporation more than S2OOOO0,000 for new con-
str,ction and extraordinary replacements while
in the same time it has paid 10 stockholders
42lk per cent on the preferred stock and u per
cent on the common stock. or total Of $780,
SO 2S3 In addition it has paid Sll914469J in
terest on fits bonds and S33,12S.364 on subsidiary
bonds grand total Of dividend and interest dis
bursements of S3SS. .6SS,342.
The preferred dividend. interest, mortgage
and rental obligations Of the Steel Corporation
are AT present So. 1873. .4JO less than they were
In 1902. Notwithstanding the issuance of bonds
in connection with the acquisition Of the Sharon
and Clarion steel properties and new construc-
ton and extraordinary replacement work
The corporation has increased its capacity Of
pig iron G3 II per cent in the last six years and
in the same period it has increased its finished
steel capacity 443 per cent. The capacity for
steel ingots has increased 5GG4 per cent while
II has decreased the cost of manufacturing steel
on an average Of 50 q ton. In six years the
earning power has increased il IS estimated,
more than S50OO0O00 a year. which is equal to
about 10 per cent on the common stock.
As a result Of exploration and development
work the corporation finds itself richer in ore
deposits by several hundred million tons than
it believed IL owned at the time of the merging
Of the properties that form the company. And
il has made itself impregnable IN iron sur
plus and deposits. including the Hill ore lands.
now estimated at between l,J0OOOOOO and
2OO0DO0O00 tons. The large earnings OF the
concern in the last two years have been made
without the exaction Of unreasonable prices.
though IL has been in a position 10 do so, and
as consequence the relations between the cor
poration and the consumer are most harmonious.
while a sensible working understanding exists
between the company and it's employees,
The following table is a compilation of the
reports Of the United States Steel Corporation
from April l. 1901 the date upon which the
poration began business TO the end Of the quar-
ter ended December 81, the figures being sup
piled by THE Wall Street Journal:
Total net eatnines Of all properties pP sfte. de-
az after nd 5esaptbF enployes: bonus funds aiso
interest on bolds and fixed charges Of the
e1rbal .Ffavv
quarters years se7e s55oG5
Depreciation ana replacement funds $40 !25.o2s
Interest," iisdss ON ON l. Steel ll56s5&@6
slE 1o'aa fas for ids ana int thereon soi9asSo
Di7denas T1ie8s on pa 40 afsresated iSs5sos75
sq. Is ssss sS3 on .3a s g g
s. Surplus is.s :, formation ., i $ &. 'lss g ssS ssS5s5 55
Total surplus 896 I47
settlement OF commitments for prop
sub. cos. prior 70 lhe formation
ApProp P o for new constr. and prop. 5s.2952si
AIS1 APpr i@S FOR 5s rus fds minn Toyates 100000
Proat and loss surplus Dee a. 1906 s795se eeSt
Surplus subsidiary companies ...-.-. y lG4 go
Total surplus $S'''-o1l4
comparisons Of items in balance sheet etc -four
years apart:
1862. 1895. Changes.
rren. ss4 i5T $3.50 800 Inc s51 1873 7ss
current liabilities .4sssa212 43G72o0o Dec 6l5424s
.ss cur assets slG5 COZ 500 s2 $40 Inc $ G9l
cAP1TALlzATIoN.
1902 1906
,.,,,, .tock .......... s50e :gJs s5os sG2 500
rreferEed stock d =, sg ~ s i5 s19 ,
1 STATISTICAL.
A-arsee number cf employees. les, ~ 302 as
laarirF paid El2o 2s3a3 $i4I 1654O
SsToss earnings Of all companieS. S6A b1os1a d61S6sS