The Washington herald., 1909-07-28
WALL STREET NEWS
Quarterly Report of Steel
Corporation Is Excellent.
DIVIDEND RATE IS INCREASED
Large Earnings Permit of Larger
Disbursement on Common stock.
Ample justification Found IN the
Orders on Hand-MarIset Receivers
from Mondays Dizziness.

New York, July 27.-The quarterly re-
port or the United States Steel CORPORA
lion. which was given out after the close
OF the market to-day. tells in plain fig
ures story OF that remarkable improve
ment in the steel trade OF which there
has been abundant evidence for many
weeks past In the re-opening OF plants.
the increase Of fresh business in most
branches OF trade. and the steady recov-
cry OF prices from the cuts made in the
latter part OF February.
The earnings for the quarter OF S2e.s4o. l.
BOO were far below those Of the banner
quarter OF the company's history that
ended In June, 1907. when earnings we're
b40.5O4.Ooo. but as compared with the low
point following the panic. that OF the
March, lSUS, quarter, they showed an IN
crease or SlLl00.O00. or much more thar
% per cent The earnings for this June,
LyVy quarter, were also $6399,000 ahead Of
those FOR the previous quarter and well
ABOVE those OF any other quarter since
the panic
Big Gains Recorded.
Equally significant was the fact that
each month showed a decided increase in
profits over the preceding month, the
earnings for April being SS163.OOO those
for May s9e6l.OOO and for June. in
which the greatest gain was recorded.
Nl5l6,OoO, For depreciation. reserve
funds, and so on. = company charged
on $22SI,OO0 more 80 in the preceding
quarter and stu lad G. balance OF SIS
Oll,o00 applicable 10 tho payment OF divi-
dends as compared with Sll.S73.OOO in the
previous quarter
II Is thus obvious that the directors de-
parted not a particle from their long es-
tabhshed conservative and prudent policy
IN increasing the dividend rate on the
common stock from 20 per cent per
annum for, after payment OF the in
creased dividend the corporation showed
surplus or S5.S94OOO. as compared with
a surplus OF $3O27,OOO In the previous
quarter. after payments OF dividends az
the old rate.
Ample justification for at least as great
an increase as was made was also found
IN the untitled orders. which at the close
or the quarter exceeded those at the end
or the previous quarter by more than
100000 tons, Notwithstanding that during
n large portion Of tie June quarter the
company wax able 10 make prompt de-
hveries OF the large amount OF new busl-
ness coming 70 Il.
Near High Water Mark.
Furthermore II IS known that in all
lines Of trade except steel rails and rail-
rOad/equipment business for the current
quarter has 70 date been close 10 that OF
the high water mark Of the industry.
The company Is in fact just now doing
greater business than ever before.
though since its capacity is much greater |
than In previous boom times. only the
long-delayed orders OF many railroads
for rails ana supplies are needed 70
bring business entirely UP 10 normal. So |
that altogether the recovery in the trade !
this year. II not unprecedented, seems /
70 have been extraordinary even for a
business resiliency Of which has been so
often and strongly demonstrated after
previous periods OF panic or depression.
Trading IN the stock market was not
much more active than on the previous
day. but stocks developed strength 20 a
degree seldom noted IN a dull market.
Steel common recovered the loss OF the
previous day, as did many others. and |
there was no such irregularity as marked /
yesterdays transactions. Among specu- /
lators, undoubtedly the greatest interest 4
was taken IN Union Pacific, which sold /
within One-eight Of 200 The market /
as a whole more than recovered all of /
yesterdays loss. and in contrast with /
yesterdays market also. Il worked in ac-
cord with the grain markets These |
again showed sensibility to favorable |
crop reports.