New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-01
STEEL EARNINGS LOWER
quarterly Figures Smallest Re-
ported Since 1904.
DIRECTORS HOLD MEETING
r..ss Estimates Advance of
st5O a Ton on Orders Above
First Quarter Average.

-. earnings Of tbs United States Steel
..,-.-on ror the three months ended
.,!o, Il were only ,1Is2s,97S, against pre-
s-.,,.ry estimates ranging from sls.Soo ooo
-,,,inun to .OcOcco or s25.ooo,oco and
~. smallest reported since March 81.
w, rb.n the figures were Sl24i5.931. After
~. 81 AL charges and Of the
.,,,ts represented by the regular quar-
-, 5,vidends Of IA per cent on the pre-
-. stock and II on the common, def
., a, s6.2s2l3i vas shown for the quarter
~. meeting Of the directors. at which
,..-.ssr OF the twerty-four members Of the
- we're present was held just after
-. .ioss OF the stock market, which had
- irregular during the dav because OF
.,. uncertainty concerning the showing 10
=. -sde bv the Steel Corporation and re-
s..S;ng the outcome Of the Presidential
s--,,rv contest in Massachusetts. The
,-.nsac1ions Fl Steel common were on a
heavy scale. and the stock moved within a
,,nss OF about two points the close being
sanet advance o. !.
The average advances recently estab-
p.b.d in prices Of steel products have been
eatoS ton. but the Steel Corporation
,s not expected 10 receive the full benefit
~ these increases IN the current quarter,
srcs a large proportion OF the contracts
mon which its plants are working were
boosad at around the low levels. Ii IS est
mated in the trade, however, that de,lv-
.rIe. will be made az a price basis about
MA ton above the average for the first
ousrte-. which would mean an increase OF
shout 100000 in earnings on the same
volume OF business.
Total earnings for January were S5.243. 4H6;
February. s5.427.32o and March. SIISs, "a.
These figures are Of earnings after deduc-
ron Of all expenses incident to operations.
including those for ordinary repairs and
maintenance OF plants and interest on
bonds OF the subsidiary companies. This
last item IS for the first time shown sepa-
rately. toe earnings by months beins
stated before and after deduction Of inter
esl Of the bonds Of the subsidiaries.
The reason for the change is because Of
fluctuations in these interest charges
ewing both TO issues and retirements Of
bonds, the deducting Of interest before stat
ing earnings tends at times 10 disturb the
proper comparison Of operations as reflected
In the net result heretofore reported as
earnings"
The total earnings OF sf7,S26,973 com
pars with s23,105, 115 for the three months
ended December 81 last, and with s23,519.-
2o3 for the quarter ended March 81. 1911.
and Ss7,616,S76 for the corresponding quar-
ter Of 1910. The largest earnings for the
March 81 quarter were sS9,1?2, 492, in 1907.
Deducting from total earnings the charges
and allowances for sinking funds on bonds
Of subsidiary companies and for tho de-
prsclation and extraordinary replacement
funds, s4,14S,444, and the sinking fund re-
ouirements Of s1.570.114 on the bonds Of
the Steel Corporation itself, the net earn
ings we're s12,1oS,415, and the balance, after
subtracting the S5,741,s49 required for in
tsrest on the outstanding bonds Of the cor
poration for the quarter. was S6,265,566.
Dividend requirements were s6,304s1e on
the preferred stock and s6,353,7Si on the
common. a total Of s12.65S,700, and with
the deduction Of this total from the balance
Of ss,366,566 there was shown deficit for
the quarter Of s6,2S2134. which the state
ment says Is provided for from the undiyid-
90 surplus at December 81, 1911.
The dividend on the preferred stock is
payable May % and or the common June
90.