Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-02-29
HOUSE GETS REPORT
ON STEEL EARNINGS
CONTINUED From Page J..

greater portion of it's profits in raw
materials and in plants producing
semi-finished materials, while the fin
ished products plants make very low
profits. This operates, it Is declared,
to keep the price of raw materials, are
coke, and pig iron on high plane, to
the advantage of the corporation and
disadvantage Of the independent.
"During the years from Jan. /, 1902
to Dec. 81, 1870" the report says. the,
productions of the corporation IN rolled
and other finished steel amounted to
79,267,363 tons and the adjusted net
earnings for the same period, amount.
ed to $1,000, 6S5.3S9 OF an equivalent OF
approximately $13 per ton. In order
that an idea may be had OF the net
earnings in dollars per ton of the sew
eral operating groups Of the corpora
ton, have calculated these figures
and find the approximate net earnings
Of $13 per ton Of finished product to
have been earned as follows:
by manufacturing companies $S.O1
per ton. BY coal and coke companies
$1.70 per ton. BY iron mining CON-
panies 1912 per ton. BY transporta-
ton companies $1.S1 per ton. BY mis-
cellaneous companies SO cents per ton.
Total $13."
This, the report says, is equivalent
to an earning of 40 per cent on cost.
In accounting for the discrepancy
between the earnings claimed by the
steel corporation, $9S0,000,311 and his
estimate of $1,1o9. 146,093 McRae re-
stored to net earnings what had been
eliminated by the steel corporation in
it's accounting including such things
as Interest on bonds Of subsidiary
companies, the locked-up inter-com-
pany profits in inventories, special de-
probation admittedly charged to con-
struction, employees bonus funds and
special compensations, account prefer
red stock subscriptions, which have
been treated as dividends from earn
ings and not in the nature of addition
al wages to employees, and lastly in
terest on bonds, mortgages and pur-
chase money obligations of subsidiary
companies.
AS showing the result of the policy
of the steel corporation to make the
bulk of it's profits in the raw and semi
finished material, Mr.. McRae submit
ted condensed statement of the divi-
dends paid by the subsidiary COM
panies to the steel corporation and
the interest paid by the Carnegie Co.,
on it's collateral trust bonds, from
April 1, 1901 to April :. 1910, showing a
total of $753,124,3s653.
Dividends for Nine Years.
"The income from the Carnegie Co.,
in dividends and bond interest," he
says, amounted to 1905 ,239, 537.49 or
about 40 per cent of the total. The
American Bridge Co., paid the holding
company dividends on it's preferred
stock during this period to the amount
Of $19,715,577.50, or two and six-tenths
per cent Of the total"
The table of dividends for the nine
year period follows
The Carnegie Co. :. ..$227 ,2S0, 100000
Federal Steel Co. (com.) 114,816, 1920
Federal Steel Coz pref) 31,157, 1850
Natal Tube Co. (com.) 29,783.905.6O
Natal Tub Co. (pref.). 27,299,737,5O
American Steel & Wire Co.,
of N. J. (com.) 51,11o.4e0.25
American Steel & Wire Co., y
of N. J. (pref5 -. 27,2s9, 1925
Natal Steel Co., (com) 6,4O0, 100000,
Natal Steel Co., (pref) H9,153.O0
American Tin Plate Co.,
1common) 7,41s,e9o.0o
American Tin Plate Co.,
(preferred) -. 1854, 372.OO
American Sheet Steel Co.,
(cOmmon) go. 1874 ,948.OO
American Sheet Steel Co.,
(preferred) :. ~--s. 5,573,56S.OO
American Sheet & Tin
Plate Co., (com.) -. 25,540, $685. 90
American Sheet & Tin
Pate Co., (pref) 80. 12,0O4 10000
Icommon) -. 1,sso,ooo.oo
American Steel Hoop Co.,
(preferredD -. -. 2,04l, 497.5l
American Bridge Co.,
(preferred) -. 19,715,57L5O
kOliver Iron Mining Co.. 2,4OO 100000
Lake Superior Cons Iron
Mining Co. So. -. 66,689,969.O3
Shelby Steel Tube Co.,
lpreferred) J. :. 1924 1916. 90
Pittsburg Steamship Co. 243.870.00
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