New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-20
u. s. TAKING LEAD,
DECLARES GARY
Assures u. S. Steel Stock
holders of Coming
Prosperity.
COMPLAINT OVER
DIVIDEND PASSING
Chairman Says Business This
Year Has Surpassed
That of 1914.

Chairman Z. II. Gary Of tho United
States Steel Corporation told the
stockholders present at the annual
meeting yesterday in Hoboken that the
company's business thus far this year
was much better than In 1914, partlcu-
larly in the export end. Domestic con-
ditions, he stated, were not so good,
and operations ut present were at
about 20 per cent of capacity. In com
menting on the genera! outlook he re-
marked:
"Our position among the nations or
the world is taking the lead. Finance,
industry and commerce are better to-
day than ever before. | hope that the
holders of our common stock, even II
not getting dividends at the present
time. will not despair and sell II 1or
something that they may like better.
81 assure you that the country Will
prosper, and | want to pledge again
that the management OF this corpora
ton is going to be thorough, open and
careful. and that it has nothing in mind
except the advancement Of the inter
ests of all the stockholders, at the
same time believing that the interest
of the stockholders are the same as
our employees, competitors, customers
and the general public
p Y. 4. Brandt, a stakeholder, com
planned that he had been hard mt by
the passing Of the common dividend
last December, and he criticised the
directors for sacrificing the stocKhoid-
ers rather than the employees. lie sug-
gested that TO protect their interests
a reserve fund be set UP instead OF
putting all the profits after DIVIDENDS
into surplus account
Judge Gary expressed surprise that
any Of the stockholders had dlsap-
proved the decision OF the manage
mept to pass the common dividend
rather than cut wages. He added:
THE management was very sorry 20
be obliged 70 pass the dividend on the
common stock. We had been hoping,
and had expected 10 continue the pay
ment Of the dividend without Interrupt
ton, but conditions were such that u
was impossible. We were confronted
with the choice of passing the dividend
or reducing wages. In view o. the
present high cost Of living, We believed
the men were entitled 20 the wages
they were receiving, which we thlhN
a1e not too much
Explaining that the surplus earnings
of the corporation heretofore have
been put into propert" and did not
represent cash, he SAID they were
therefore, not available for dividends
on the common stock lie expressed
the opinion that the company's surplus
was more conservatively stated than
that Of any other large concern he
knew Of. and defended the policy which
would tend TO keep down bank borrow
ings to minimum.
Another stakeholder asked il it were
true that The Bethlehem steel Corpo-
ration was making big inroads into the
United States Steel Corporations buSi-
ness. to which Mr.. Gary replied:
1--WE are saying nothing. but saving
wood. Every one who gets our business
away from us is entitled to IT, as we
treat our competitors fairly and with
out resort TO trickery.'
The stockholders ratified the amend
ments TO the company's bylaws calling
for a reduction in the board of dI-
rectors from twenty-four to eighteen
p. A. 3. Widener, whose term Of office
cxpired, resigned as director, and he
was succeeded by Henry Walters, who
had been a director in another class
but had resignCc 50 he could be elected
10 fiji the vacancy created by the re-
tirement of Mr.. Widener.
The stockholders books, which were
open for inspection, showed the fol
lowing changes IN the larger holdings