The Washington times., 1912-02-04

ter OF 1910, It was predicted in trade
circles that the December quarter
would not show earnings much In ex-
more than g, 900 above that figure.
Some little comfort may be extracted,
also, from the fact that the Steel earn
ings for December, $6,999,O6O, show
slight increase over November, $6,946 III.
Such an Increase occurs for the first
time in the company's history and that
this rising scale may carry into 1872
seems probable from the fact that the
volume of untitled orders has been
steadily increasing in late months.
Steel Corporation Earnings.
Actually, the Steel earnings leave
much to be desired for, despite the
much increased capacity of the plant.
the $23, ,105,0O0 reported is the smallest
for a like quarterly period since 1904.
On that occasion, moreover, while net
earnings were 81, 100000 less, the allow
ance for depreciation was 81, 200 900 more
than in the present quarter under re-
view and the company showed a sur
plus of 1880, 900. At the present time
the Steel Corporation shows a balance
of but $S9 63S over the quarters re-
quirements for interest, dividends, etc,
and this was obtained only by fore
going the appropriations for deprecia-
tion, ETC., on the scale of other years.
In TACT, Ine WHICH "db set
aside for depreciation account in the
same three months In 1910, or the
81, 900 900 which was charged off in 1909,
had been deducted from the last quart
erly earnings, the company could not
have met its dividends without Great
ing a deficit.
Nothing speaks more eloquently of the
effects Of agitation upon general busi-
ness than the fact that the Steel earn
ings for the quarter fall no less than
halnuy fha nnrin6 In
1s09 while they are $2,SS5, ,S69 below
the fourth quarter Of 1910. and ,6l0
below the third quarter of 1911. There
was a painful reminder in the news OF
decreases in the filing of the answer of
the Steel officials to the Federal suit
for the disruption OF the company:
Naturally, from a Wall Street point OF
view, a feature Of the answer which
appealed strongly was the company's s
plea that since the Government had per-
mitted the company to organize and
continue in business for twelve years
without molestation that the authori-
ties were not justified, but estopped In
seeking to disrupt II now.
Steel Suit and Money Trust.
To the average man this seems a not
unreasonable contention, but the same
argument might have applied with
equal force in the case OF the Standard
Oil Company and the American To-
bacco Company, and with all the other
numerous companies which have been
or are to be sued for alleged violation
of the Sherman antitrust act. Beyond
serving as a reminder OF the source OF
much unsettlement, the answer by the
Steel Corporation to the Government :
suit was without influence In wal
street and no market effect was Il
have been expected, for the answer
strong as II was on certain features
determines nothing. All the Allegations
are now to be threshed out legally
and Wall Streets chief concern with
the matter Is the probable duration OF
the case, for all hands realize thai
while the title of the Steel trust Is cloud
ed one cannot look for much Invest,
ment buying of Steel shares. 1t is moi
thought however, that speculative
operations will be retrenched.
Aside from actual developments the