New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-28
STEEL DIRECTORS
CUT DIVIDEND
Common Stock of the Cor
pOration Placed OF a
2 Per Cent Basis.
LULE IN INDUSTRY
NOTED BY GARY
Disbursement Change Made
Necessary, He Says, by Bust
ness Conditions.

United States Steel common stock,
which has been paying dividends at
the rate of per cent annually since
1911, is now or "a per cent basis us
the result OF quarterly declaration of
one-half Of per cent by the direc-
tors yesterday This reduction Of
three-quarters of l per cent i'm the tri-
monthly rate was even greater than
the financial district had expected, the
lowest estimate having placed the dee
laration for the last quarter at three
quarters of ! per cent. or reduction
OF one-halt Of ! per cent from the pre-
vious rate. +. II. Gary, chairman of
the board, attributing the cut TO the
depression in the steel industry. said:
THE decision concerning the divi-
dend on the common stock was made
with reluctance by the board of direc-
tors, but they were Of the opinion that
II was made necessary by the present
conditions of the business and the
prospects for the immediate future
The directors present at yesterdays
meeting, in addition 70 Judge Gary.
were Daniel G.. Reid. +. G. Converse,
George +. Baker. James A. Farrell,
president OF the corporation, and Henry
c. Frick. J. p. Morgan did rot attend.
owing 10 his absence from the city on
a hunting expedition.
For the FIRST two quarters of the cur
rent year the Steel Corporation, in
order TO pay the S6,35S,7ol required for
each disbursement of III per cent on
the junior shares. was Obliged to draw
on its surplus account, which, at the
end Of the year ended December 81,
1913, stood at S151, 79S.I29 The i'm
come account for that year showed q
balance after dividends of $50, 5S2,1s4
from which there was deducted $751;
100000 for expenditures for additional
property, construction, etc.
Net earnings for the last quarter,
which ended with September 80,
amounted 10 $22.276,002. compared with
S20,451 596 for the previous quarter
and Sl1994,36l for the quarter ended
March 81, 1914. The total for the nine
months of the current year was $780,
727979, decrease of S37,951,SSl. COM
pared with year ago. With the poor
prospects for earnings during the last
three months of the year the loss as
compared with 1913 is likely 10 APP
proXimate S60,000,000.
Allowing for the regular quarterly
dividend Of ia per cent on the pre-
ferred stock and y of / per cent on
the common, the steel Corporations
surplus for the last quarter was $S9,-
479. Had the previous quarterly rate
Of - per cent been maintained there
would have been a deficit Of S3,722,7 s9,
Compared with deficit Of S5,159,237 In
the second quarter and S6,289,6l4 for
the first quarter The total deficit for
the half year, amounting TO Sll ,44e,-
SSl, has been reduced to 81 ,359,4O2 by
yesterdays cut in the common diyi-
dend.
While Judge Gary failed TO mention
specific reasons for the directors de-
cision to reduce the disbursement or
the common stock, one Of these - un-
derstood TO be the sharp falling on IN
the Steel Corporations export busi-
ness. resulting from the European war.
in the brief filed on October 20 IN Phila-
delphia, denying that the company is a
MONOPOLY m restraint Of trade, tgures
were produced showing that the Tor
oign sales for 1912 reached total OF
S9I .9s4 600. and that from 1903 10 1913
thev brought in the enormous income
Of $I44,210,000.
Untitled orders on hand on Septem-
ber 30 last totalled 3,7S7,667 tons, COM
pared with 1882, S57 tons on june ~
and 5.O03.7S5 tons on September o.
1q13