The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1907-06-01

According ~ q representative "A the
United States Steel corporation. the
Gary, Ind. plant 10 expected ~ pro-
duee open hearth steel rails ~ July "
next year IL has been estimated that
the Gary plant will have steel rail
capacity Of betwesn 200, 900 snd 100.
900 tons "a year
Building OF ths Duluth plant viii 30
pushed forward ~ rapidly az possible
A representative " che Steel corpol
alton says the new BUSINESS hooked
since March 81 last. which closed the
first quarter ~ the year, has been en-
siderably In excess ~ the correspond
ing period Of last year Orders booked
since the first Of May have been nn
usually large for that period
In view OF the fact that the steel
corporation has been carrying record
breaking untitled tonnage 90 ita books
together with record breaking shipment
and increased capacity, on increase u
looked for, although this Is pure guess
work
Unhlled business usually shows a
falling of In the first half Of the year
under normal conditions. For ex
ample, from Dec. 81. 1905. % March
81, 1906. there was falling of OF
900. 600 tons in untitled tonnage. From
March 81 1906. to June 30, 1906, there
was falling of of more than 20. 600
tons
Untitled tonnage under normal con-
ditions always runs larger in the last
half OF the year than in the FIRST half
Official denial is given 70 the persis-
tent reports circulated over the last
few days that the Steel corporation is
considering putting out huge issue
IF notes or bonds.
Rumor bad il that the Issue would
reach 500, 600, 600 and the proceeds
would be used for the purpose of'meet-
ing outlays ia connection with the
building Of the $50. 600 600 Gary plant
and the So. 600, 600 Duluth plant
A representative of the corporation
says an issue Of bonds or notes has not
been given consideration. that it IL
proposed to meet all expenditures for
new construction ont Of earnings, and
without increasing fixed charges Of
United States Steel.
The Steel official in question called
attention 10 the vast cash resources and
large earnings Of the company, and
suggested that a. long a. such condi-
tions prevailed, note, stock or bond
issue was entirely out Of the question.
The Steel corporation is better forti-
fed ia cash than any other corporation
in the world It's cash in hand and on
deposit with banks and trust compan
les at present runs very close 70 SO
900 900. This does not include sundry
marketable bonds aud stocks, aggregat
ing 5,720, 900 Or loans on collateral
aggregating 81 500 900
The Steel corporation on Dec 81
1906. had an unexpended balance On
account Of special constructicn...sfor the
Gary. Ind plant Of nearly $4,000. 00o
and an unexpended balance in couurc
tion with its general construction fund
81 more than e. 0oO.oO making total
81 $50 900 600
Since then there ha- been apprpriat
ed Si8. 500 900 on account ~ expendi-
lures made and 20 Be made on author
2ed appropriations Tor additional pro-
perty. making total 81 nearly SO
mn W0 Naturally percentage q this
total Was expended Or new construc.
tiou Ii the FIRST quarter y this year
but The balance remaining it il sait
10 assume il sufficient to meet jos
entire expenditures for new construc
tion this year
n earnings continue 81 larse a. they
have been since the first Of the year,
Appropriations for new construction IN
1907 viii run very close to 500 000 00o.
From th.s ii can be assumed that on
Jan next the balance FOR new con
struction will be- o. large II not larger
Than IL was on jar Of nhis year.
III brief, the Steel corporation Is
making these vast appropriations for
new construction, and At the same
time cIediting several million dollars
each quarter to surplus For example.
n the trst quarter 81 this year there
was balance OF surplus Of nearly
81 zoo. 900 after appropriation. - $i4
500. 900 for new construction
Why the Steel corporation should
consider the question u a bond or note
issued the face Of the foregoing Il a
question that conservative hnanciers
would be unable 70 understand.