New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-19
STEEL CORPORATION
HAS WORST YEAR
Report DisClOSeS Extent
of Poor Business
i'm 1914.
LOSS OF S65,517,729
IN NET EARNINGS
Export Trade Hurt by War
Low Prices Rule-Number
of Employees Less.

OF Employees LESS.
The annual report OF the United
States steel Corporation for 1914, is
sued to stockholders to-day. shows IN
detail how the company was affected
by the depression in the iron and steel
industry during that period. The bal
sncc Of earnings after deducting IN
tercst on outstanding bonds and mort
cages Of the subsidiary companies was
S7l ,60S, 6l5, a decrease OF $685. lily.
This is the poorest showing since the
corporation was organized IN 1901, and
was only approached in 1904. when net
earnings before depreciation totalled
S73I76,522.
+. II. Gary, chairman OF the board
Of directors, in his statement 20 stock
holders, attributes the loss IN revenues
last year not only TO the general less
ching in the demand for the products
of the subsidiary companies following
the outbreak of the war abroad, put
10 the decline in prices for nearly al!
classes of products and the falling on
in export business. In this latter de-
partmcnt. he says. the decrease was
relatively greater than in the domestic
trade, the decrease IN the tonnage OF
rolled and finished products having
been 37.6 per cent. as compared with
gG.3 per cent loss in domestic tonnage.
The decrease in prices received IN
1914. as compared with 1913, averaged
S2.5i a ton on the total tonnage OF
rolled and other finished products, and
accounted for SOB 100000 of the total
decrease in the net earnings for IVA.
Reference 20 the recent improve
ncnt in the steel industry is con-
-. 4ba4 since /
uarv | there has been n material gam
in the bookings of export business,
which is at present equal 20 the aver
age Of the last three years.
The output for the year OF al
classes of rolled and other finished
steel products for sale equalled only
about 60 per cent of the total annual
capacity Of the plants. The cement
production was about IS per cent Of
the annual plant capacity. The de-
crease in production last year, the re-
mort says. was especially marked IN
the case OF materials used largely by
railroads in heavy construction ana
important development work. me
decrease i'm the production Of steel
rails alone amounted 10 94S,S3S tons;
or 49.2 per cent.
How the reductions in operating ca
pacitv of the Steel Corporation IN 1914
nut many employees out Of work Is con
tained i'm the statement of Judge Gary
that the average number employed last
wear was 1883. compared with ~
oO6 in 1913. decrease OF 2l.6o per
cent. The total amount OF the payrol!S
in 1914 was $162. 379 907, in comparison
with S2O7.2O6,176 in the preceding
wear. The average salary or wage per
employe per day, exclusive OF the ad-
illustrative and selling forces, was
S2.SS. and including all employees SO
per daV. These rates were signify
higher than the averages for 1918 ow-
inc 10 the general advance in wages
made IN that year, which dld not take
effect until February.
The report shows that in 1914 the
Steel Corporation set aside 81 IO44' 100
for depreciation and extraordinary re-
placements. or S6.928,192 less than IN
the previous year.
Although saving Of more than SlO,-
100000 was effected last year by the
p9vment of 9 per cent on the common
stock instead Of the D per cent paid IN
1913. there was a deficit after DIVIDENDS
Of 1851 1888, "a against surplus IN
1919 Of S3O.5S2.1S3, which was respon-
sible for the cutting down of the total
surplus from Sl27, 676,455 to SllO,2O4,-
All. exclusive Of the $25,OO0OOO sur
plus provided in organization. Inc
comparative income account IN detai!
Tor 1914 and 1913 follows:
Jarr,ngs-EIcluslye of charges for Interest on
bonds and mortgages o. subsidiary companies.
les Interest on Outstanding bonds and mortgages
u The subsidiary companies &c., .''-...'.'.''
Balance Of earnings. 49,
Les charges and aiOWauces for depreciation, AP-
Piled follows VIZ.
To depreciation and extraordinary replacemen,
To sinking funds on bonds OF subsidiary com
pauieS ..............s
To Sinking funds on L. 5 steel Corporation
bonds ................' '.+'''- .''''''''
Net income in the yesr.................,.....
Interest on Z. S Steel Corporation bonds out
Premium paid bonds redeemed by sinking
funds. viz.
on l. 5. steel Corporation bonds. ........
Add net balance o. slndry charges and credits
including adjustments Of various accounts.
D.vdcnds on l. $ steel Corporation stocks viz.
Preferred : per cent. OBSERVATION-DISCLOSURES.
O. per cent ia lsl3..................'
''''i'O' J 9 per cent IN lsli...................
Surplus net income IN the year ............
Appropriated from surplus net Income on account
~ expenditures made on authorized spproprS
ff0rs for additional property and construct on
and the discharge o. capital obligations. .-.....
Balance ~ surplus ior the yesr...,...........
Increase tDeb,or. 1Dcsct.