New-York tribune., 1912-08-14
REPUBLIC STEEL REPORT.
Remarkable Changes in Com.
pany'S Business During Year.
HIGHEST AND LOWEST
Cost of Production Touched Top
Figures, While Prices of
Products Were Lowest.

The advance statement Of the Republic
Iron and Steel Company was sent out yes
terday, and like other corporations re-
cent returns. is another link In the chain
Of evidence that the turn has been reached
for the better. The operations prior 10
March, however, were discoursging ami
caused shrinkage in surplus for divi-
dends Of more than s1,000.000 The pres
ent production is on a ratio greater than
ever before in the company's history.
while expenses are the lowest. In his re-
port TO stockholders for the year ended
June 30 Chairman John \. Topping says:
"rhe fiscal year covers a period OF the
lowest market prices ever experienced IN
the history of the company General bust
moss conditions we're most unsettled the
close of labor high and general operating
conditions Of an adverse character.
The general weakness and demoralized
condition of the iron and steel market
referred to in the semi-annual report OF
December 81. 1911. was decidedly intensi-
fed by the introduction Of new factors OF
business disturbance which had the effect
Of causing further loss Of business con-
fdence. Under these conditions the pro-
ducers of iron and steel in order 70 stimu-
late an economic volume Of business Of
fered further price reductions. low ebb in
values being reached during March.
Under the influence OF bargain prices and
improvements in business sentiment, due
I'm part to lessened activity Of investigat-
ing committees and also TO improved crop
prospects. the volume OF business was
rapidly Increased, reaching such proper
tions during April that general price ad-
vances were stimulated.
THE various new manufacturing de-
partments put in operation during the last
year have all been successfully organized
and efficient results secured. with profits
realized from capital investments in new
improvements equal to and in some in
stances larger than those secured from the
older and better established departments.
A study OF the report in detail will en-
phaslze The fact that not only has maxi
mum production been realized but that
high efficiency has been obtained.
Production is now the greatest and
costs the lowest in the company s history
all previous records having been ex-
ceeded.
Attention is also directed 10 the large
additions TO the iron ore holdings OF the
company and TO the Importance Of the
Increase In mineral reserves. both In re-
spect to the influence on future earnings
as we'll as 20 the increased intrinsic ana
potential value 10 the companys property
In view Of the large expenditures for
maintenance and repairs disbursements
on this account exceeding the previous
vear's allowance by S3209SD and owing
to the liberal allowances heretofore made
for the depreciation. and also In consid-
Grafton Of the many new additions TO
plant II was deemed proper by the eKecu-
tive committee 10 make some reduction
IN depreciation charges for the current
vear: full allowance. however, has been
made by deductions from earnings FOR the
maintenance of all other provisional
funds.
The policy Of diversifylng production
extending output by substituting modern
for obsolete equipment. 80 as TO main
tain maximum production and economy
Of operation, IS being continued, import
ant appropriations having been author
lied on account OF improvements for the
calendar year 1872
Following is the income account for the
fiscal year: