Evening star., 1915-01-27
WALL STREET SHOCKED
BY STEEL STATEMENT
It Shows Poorest Net Earnings for
ANY Quarter in History
of Corporation.
Preferred Stock Drops Five Points,
Common Below Minimum-Local
Financial News.
BY I. A. FLEMING.

BYI. A. FLEMING.
Wall stHeet. shivered today and tn
stock list shook from Atchison to West
ern Union. For some time past clos
students of the steel situation hav
figured that the net earnings of th
steel corporation for the last quartz
Of ths year would be somewhere in th'
neighborhood of 100000. and wher
the actual facts demonstrated the cor
rectness of the estimates the street wa
apparently surprised.
But few expected that the dividend
would be passed on Steel common. eN
pecting that the directors would dill
into the surplus fund accumulated
during prosperous years to pay the un'
earned dividends of the leanest o
years. but they decided otherwise. anc
from 51S4 the price of steel common
declined to AS, and on the curb tbs
stock was offered at is. loss of sa';
share. for the reason that the quar-
terly distribution of so cents share
had been passed.
Actual net earnings were S10.933.17c
for the last quarter of 1914, as com
pared with the previous low quarterly
earnings of s13.445.232 in the first quar-
ter of 1904, at a period marking the be-
ginning of a rally ultimately of about
SO points on the preferred, from 49A
the low of 1908. to $50, about the high
point of recent years.
share, about s2.550. 600 would have beer
necessary. and as this would have had
TO have been taken from the surplus
il would have increased the deficit for
the quarter from s5.6oS.sS3 to about
sS.150,O 900.
Monthly earnings in October were
s5,5sO,533, in November $2.19S.3SS and
In December s2.554..4a. For the full
year 1914 the deficit was s1S:965.5s5
total earnings. s71.S61.149. The pre-
ferred dividend was not earned by
s1.716.S12.
Netsearnings for the fourth quarter
of t6e year 1911 were $23.101. .115: OF
1912. s33.Is5.5s5; of 1915. s23.oS6.S49; OF
The surplus of the steel corporation
is large, totaling S171 ,o62.2 Isl, but there
was shrinkage from S1SS.027 1886 from
the surplus on hand at the close OF
Judge Gary softened the blow as
much as possible by reports of I'm
provement in business and a hope for
speedy resumption of dividends.
Drop in Preferred Shares.
The fact that the preferred dividend
was not earned was a severe shock te
the holders of this per cent stock
Not for years has there been anything
like the activity in these shares that
attended the opening hours. when the
stock dfopped fSom close at los yes
terdae to 1881.
Other stocks suffered with Steel
losses averaging 1 to q in the indus
trials and better than point in rail
road shares. while Reading was off :
points and Canadian Pacific 2l..
Clearing House for Refused, Checks
The establishment OF regular dali,
clearings for returned checks. on which
payment has been refused for one rea
son or another. is probability of tn,
near future in Washington
Under the present arrangement mes
sengera from each bank must max,
the rounds Of all other banks in max.
ing collections of these returned items
necessitating much time and trouble.
Under the proposed method messen.
gers for all banks would meet at the
clearing house at o'clock in the after
nooDrand exchange checks. settling the
difference by memorandum. which
would be attested. and would then pas,
through the next days clearings as {
check.
redemption and would be a convenience
to all banks in the Clearing House As
sociation.
Local Securities.
Washington Railway preferred shares
again led the local stock market In
activity and interest. All offered at s.
was taken. and SIS continued to be bid
with the closing asking price Sc. For
the common the nominal quotation was
s5 bid, none offered
Washington Gas stock was firm at So
Graphophone shares continue to show
great strength. the bid prices being sc
on the common and "a on the preferred
many points above the prices of few
months ago.
Potomac Consolidated per cen
bonds were offered at 99A.
BY a ruling of the board of governor
members of the local exchange ma.
make trades in other markets at lowe
than minimum prices here. This rul
.ng was probably made to permit trad
ing in Mergenthaler shares on the Bos
ton market, where the stock is sellin,
around 1ss to 1s9. 1t Is being Offered
here at 19l.
Dividend Declared
The German American Insurance
Company has declared a semi-annua
dividend of s per cent. payable Febru
ary 1 to shareholders of record Janu
sry &c.
Financial Notes.
The Pullman Company is working a
80 per cent of capacity, employing
1900 men. Married men are being KEEP
in their positions.
"Present-Day Banking Problems ant
the Federal Reserve Act will be DIR
H. Parker Willis subject for discus
sion at the New Willard Hotel tomor
row night. On this occasion DIR. Willis
will undertake to answer all question:
that may be asked by intereste,
auditors.
The Guaranty Trust Company has i'm
ported $4,000 in French gold.
The Union Trust Company has filet
a new report of it's operations durin,
1914, deducting interest paid from ex
penses. In the first statement mad
the expenses Of the company include,
S63.S17 interest paid, while the ex
penses are now reduced by this amour
10 s96.647.
Since its formation the National Saw
tngs and Trust Company has receive,
from depositors 32.209.705.4 and ha
paid back s2l6.4s7. .73030. leaving ne
deposits at present of $6,72l,975 II
addition, $2.154.26l.5 has been paid t
depositors on account Of interest. Tn
hau &