The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-02-28
GOT S7O,OOO,OOO
FOR ORGANIZING


Continued From Page one.
restraints competition by making the
proater portion OF its profits in raw
materials and in plants producing se-
unfinished materials. while the finish
ed product plants make very low pro-
fits. This operates. il is declared, "a
keep the price of raw materials. ore
coke, and pig iron on hish plane. u
The advantage oc the corporation and
disadvantage of the independent
During the 9 years from Jan. ],
1902, 10 Dec 81. 1910" the report SAYS
the productions OF the corporation In
rolled and other finished steel amount
cd TO 19,267.363 tons and the adjusted
net earnings FOR the same period,
amounted TO Sl.O29.GS5,3Ss or an equiv
alent OF approximately SIS per ton. In
! order that an idea may be had of the
net earnings in dollars per ton of the
several operating groups of the cor
poration. | have calculated these fig
ures and find the approximate net
earnings of $l5 per ton of finished
product TO have been earned as fol-
lows:
by manufacturing companies $S.0l
per ton BY coal and coke companies
$40 per ton. BY iron mining compan-
les S212 per ton. by transportation
companies Sl.S1 per ton. by miscella-
neous companies $50 per ton, Total
Sl3.Oo'
This the report says, Is equivalent
TO an earning of 40 pcr cent on cost.
Dividends From Subsidiaries.
In accounting for the discrepancy
between the earnings claimed by the
steel corporation. S9S00OO3l1 and his
estimate Of S1,lO9.146.Og3, Mr.. McRac
restored 10 net earnings what had
been eliminated by the steel corpora
ton i'm its accounting, including such
things rs interest on bonds of sub
sidiary companies, the lockcd-up inter
company profits i'm inventories, spe-
cial depreciation admittedly charged
To construction, employees bonus funds
and special compensation. account pre-
ferred stock subscriptions, which have
ings, ana not in the nature Of addi-
tionai wages to employees, and lastly
interest 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 i'm the raw and semi
finished material Mr.. McRae submit
ted a condensed statement Of the divi-
dcnds paid by the subsidiary COM
panies to the steel corporation and the
interest paid by the Carnegie COM
pany on it's collateral trust bonds, from
April !, 1901 to April l. 1910, showing
a total OF $75S,124,3SG.53.
1.-THE income from the Carnegie com
pany in DIVIDENDS and bond interests"
BE says, amounted TO 1905 289. j37.49 or
about 30 per cent Of tho total. The
American Bridge 90. rtd the holding
company dividends on its preferred
stock during this period to the amount
of $i9,715.5725O or two and six senths
per cent of the total"
The table OF dividends for the nine
year period follows
The Carnegie company ..s227.2S0, 600. 90
Federal steel Co. com. q. 114.S161S2.O0
Federal Steel Co, Pfd. -, S1.15712S.59I
National Tube Co, COM. s9,7S3. 9O5.5O
National Tube Co, Pfd... 2I299.73 80
american Steel & Wire
CO. OF N. ]. COM. 51,110, i6O25
American Steel q Wire
co. of n. j. Pfd ....... 27,299.15S.25
National steel Co, conn.,. 6.40O. 900. 90
National steel CO.. Pfd.. 3.779153OO
American Tin Plate Co.,
common .,............ ,4l9,69000
American Tin Plate Co.,
preferred ."....... 3,Gs4S72oo
American Sheet Steel
Co, common .......... 3,tSA94S.00
American Sheet steel
Co, preferred ....... 5.573,56S. 90
American Sheet & Tin
Plate Co. com. anna. 25,540,S33.00
American Sheet & Tin
Plate Co., preferred 49,. 12.OO4 $4,000
American steel Hoop Co.
common .............. 1,330.O0O.00
American steel Hoop Co,
preferred .......... 2O41, 1881
American Bridge CO.,
preferred .......... 19,715.5775O
oliver Iron Mining CO... 2.lOO,OOO.OO
Lake Superior Cons. Iron
Mining co. .......... 66.6s9, se9o3
Shelby Steel Tube Co..
preferred .......... 2,224.995.O0
steamship Co. 243,S7O.GO
Claiton steel Co. ....... 4.235,0OO.G0