Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-15
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

ures prepared from the annual report
that the full dividends for the quarter
212 per cent and the usual extra .
per cent, had been fully earned; tnat
the company in addition had carried d
large balance to the credit SIDE OF ,ne
surplus account. and that the surplus
now was over s10,000.000.
The contention of those who SPOKE
and of those who applauded was t9at
there was not the slightest reason iof
making any reduction.
The point was made that even II tne
surplus was invaded it would De noun
ing more than justice to the snare
holders, that the surplus had oeen ac
cumulated for the rainy day. but that
there was no necessity Tor carr yins
large credit to surplus, making IT iars-
er, at the expense of the stockholders
A communication was read from Pres
ident Dodge to the shareholders pres
ent in which he set forth his views at
length on the company's position.
Another letter was read from MI
prevail of the shareholders in Its
phrasing, as the writer probably had
no idea that it was to be read TO
very large representation OF snare
holders.
After various discussions of the sit
nation nro and con a resolution was
adopted that Mr.. E. V. Murphy, a
director of the corporation, under
standing fully the sentiment OF the
meeting, be instructed to use all hon
orable means to persuade his 1eliow-
directors to declare the usual divi-
dend.
The meeting at which dividend action
will be taken will be held Tuesday
next.
MN Murphy promised to faithfully
represent the views of Washington
shareholders and to do everything In
his power to secure the desired action.
Mr.. w ]. kehoe was in the chair.
Mr.. Howard S. Nyman was secretary
and Mr.. Hayden Collins, assistant Sec
rotary.
Estimates place the holding of Mer-
genthaler stock in Washington not far
from $4,000 shares, and their loss
through passing of the usual extra
dividend would be s15o.0oo.
Shareholders seemed to recognize the
unusual conditions prevailing, but fur
Their approved of the idea that the sur
plus had been accumulated for just
such a condition, and, further, that the
payment of the full distribution would
in no way withdraw a dollar from the
surplus, but would still leave very
large amount to be carried to that &C
count.
Government Finances.
1t remains to be seen just how the
curtailment in imports will reduce the
revenues from the tariff law now in
force; just how far the dry move
ment will reduce the internal revenue
tax and the full effect of the expected
large decrease in income tax will cut
the payments from this source.
1t is a reasonably safe proposition
to predict that the war tax measure
will fall short of the needed revenue
and that there will be a deficit of more
or less serious proportions at the close
of the fiscal year.
Reports of cabinet members soon TO
be fled with Congress will be exceed
inglv interesting reading, showing the
workings of the various departments
for the last fiscal year. The enlarged
operation of the parcel post system.
put into effect by Postmaster Genera
Hr;rleson. will be studied with interest
by those who look for a deficit in this
service.
Virginia by voting dry" in the last
election cut off 100000 annual revenue
returns; every license refused and every
state dry means less revenue.
Reduced gross earnings of the rail-
roads and Industrial corporations Will
be the most serious loss, through the
l per cent against these earnings,
while the income returns will fall lar
below the returns of last year, even
though for ten-month period versus
a twelve-month this year.
Over 126 corporations have passed or
reduced dividends and this means not
only reduction in the regular cor
poration tax, but in the sur-tax on in
comes of over $4,000.
Import duties will show most seri-
Gus loss.
If the first session of the Sixty-fourth
Congress develops an extravagant
streak. the losses will be increased and
the probable deficit enlarged.
Steel Earnings.
The United States Steel Corporation
will close the year with the smallest
earnings in its history with the excep-
ton of 1904, when they were $73.176,-
522
Assuming that depreciation charges
in the fourth quarter are $1.0O0.O00 less
than they were in the third. quarter,
a much larger decrease on
such small eanings and production is
likely, the surplus available for United
States Steel dividends would amount to
about s27,5O0,00O, equal to TT per cent
on the preferred.
Deduct the per cent preferred divi-
dend and there would remain bal
ance of $2,2O0.000, equal to 0.45 per
cent on the common stock. There would
then remain a deficit in excess of $751;
900, 900.
about s4,500.000 in excess of the low
record year of 1904, the surplus of
s27, 500. 900 available for dividends is thse
smallest since organization, being ap-
s2.700,000 below what it
was in 1904 This is due to the larger
depreciation charge incident to en-
larged capacity and output and In
creased sinking fund charges.
M al-lAAl Ar n nAl1EA