The Washington times., 1912-05-05


corporations entire history. for the
nearly doubled since the dates Of the
carrier poor reports cited.
Unsatisfactory Steel Earnings.
Although Steel common broke about
one and one-half points on the publica-
ton OF the quarterly statement. II re-
covered practically the entire loss on
Thursday. The net earnings we're SO
much poorer than the Street expected
that one element held that they were
TAXED and had been made to appear
pad for some ulterior purpose, and
7refore they disregarded them; while
ther element pointed to higher prices
prevailing for steel products, and
rledicted better results for the future.
Thus the financial district showed It's
and It was not until Friday. when the
Street heard a rumor that the dividend
payment on Steel common might be en-
Joined because the company had re-
Gently financed itself by selling $30. .600, 900
In bonds, and had not earned it's com
mon stock dividend by S6,292, 134, that
the rank and file gave much serious
attention to the unfavorable features OF
the report. the possible reduction of the
dividend unless earnings improve mate
rally In the near future.
While there seems no doubt the iron
and steel industry has shown improve
III tHdt tne recent ADVANCE OF a
dollar ton is being maintained. the
Iron Age notes in this weeks review Of
the industry the higher price has
checked buying demand to some extent
This would seem to indicate the ten
dency in the industry is still somewhat
uncertain. However, 1t may not be an
unmixed blessing for the Steel Corpora
tion. II bookings should fall Off a trife.
for one thing which stands out clearly
in the quarterly statement Is that the
heavy orders reported by the company
In December, January, and February
were accepted at such low prices that
between the quarter ending December
81 and that ending March 81, net earn
lngs decreased $5,27S142 1t Is clear,
therefore. that some part OF the Steel
earnings for the next quarter depends
not upon the present price Of finished
standing upon its books was accepted.
Labor Developments.
In addition to the report of an injunc-
ton suit to estop the payment of the
Steel common dividend, which in all
probability Is nothing more than a bear
canard. Fridays market discussed both
the demands for higher wages of the
Brotherhood of Locomotive Firemen
and the rejection by the full committee
OF the United Mine Workers OF America
OF the agreement to settle the anthra-
cite coal strike entered into by a sub
committee of that union and the mine
operators or owners. As to the an
thracite matter. II would seem unlikely
that the miners. who are to decide the
question on May II, will reject the
basis OF settlement, for their subcom-
mittee won much from the mine owners
In obtaining nat 10 per cent advance
In wages and an indirect recognition OF
the union. This development and the
new demands of railway employees serve
to illustrate however. the point made
in this column as to whether the pro-
posed basis for settling the coal strike
and the arbitration OF the locomotive
engineers wage dispute with the rail-
ways constituted bullish stock market
argument.
Attention was directed to the stock
market theory that an advance in
wages would bring about an advance in
railway traffic rates, which. in turn,
1t was argued by enthusiasts. would
give better earnings and better divi-
dends. A doubt was expressed here. II
this sequence would carry to the
extreme, because. as was pointed out,
II one brotherhood was successful II
would be the signal for similar demands
for higher wages from every other
brotherhood, This is precisely what
has occurred with the railroads. Even
before the locomotive engineers obtain
ed their expected increase the locomo-
demands, and IT Is difficult to see how
the wages Of one body of men employed
on a locomotive can be advanced with
out advancing those of another SINH
arly employed. and there are very many
other brotherhoods that may be and
certainly will be heard from II en-
ployes' wages, freight rates, or rail-
way dividends should be advanced.
High Prices and Consumer.
How these problems will be settled
it Is difficult to say. Prices for all
necessities OF life are high, and seem
destined to go higher and manufactur-
ing profits are small. The wage worker
has a powerful argument on
his side in seeking a greater return
for his services. but 1t Is clear that the
manager and the manu-
facturer cannot surrender on each oc-
casion that a demand for higher wages
Is made. as has been the tendency in
recent months. without getting a higher
price for his own products or services,
and this throws the burden entirely
upon the public and the consumer. Un-
less the latter can augment their in
come to keep pace with the increased
burdens there can be no great degree
OF enthusiasm in that quarter.
I find that this subject is receiving