The Birmingham age-herald., 1915-12-18
Steel's Strong Position

New York, December 11.-(Special.) )-The argument put forth by bearish element in United States Steel to back up their contention that the common stock is sell ing too high, is that shareholders since organization in 1901 have received an aver age of only 2s4 per cent annually 1T dividends. Anonymous circulars settins forth this so-called bearish view on Stee have been sent broadcast.
 Evidently these interests who have been attacking United States Steel are not familiar with statistics, and seem to over look the conservative policy enforced by tion
 It is because of the fact that the man agement of United States Steel has beer conservative in it's dividend policy that the shares are now selling in the sos
 Had the corporation neglected new con- struction work, failed to charge off ade. quate amounts for depreciation and dis bursed most of it's surplus to share holders in dividends it would either bt in bankruptcy today, or it's common stock would be selling at a price close to what it was in the panic of 1904, when the low record of S$s was reached
 Since reorganization United States Stee has spent for new construction and ac. quisition a total in excess of $500, 900, coo equal to nearly S100 share on the com mon stock.
 For ordinary repairs it's expenditures since organization amount to close to $475, ,O00, GOO, and extraordinary replacements about $145, ,000.000. a total of $620. 900, 000 ol approximately $120 on the common
 This means a total of about $220 a share on the common for new construction ac quisitions and ordinary and extraordinary repairs The total of $1,12O000,00O com. nares with a combined capital stock anC bonded debt of $1, 495, 900 at the close of last year.
 How the Steel corporation increased its efficiency, doubled it's production and low. cred it's costs, thereby permitting it tc show satisfactory margin of profit or a basis of much lower steel prices thar prevailed at the time of organization is reflected in the expenditures noted.
 By the close of the current year United States Steel's total charges against earn ings for depreciation, sinking funds and ordinary repairs will amount to very close to $900000 GOO. The corporation today has a capacity for turning out more than 20 0O0,0OO tons of steel ingots~a year com pared with capacity of 9,425000 tons ir 1901.
 Had the Steel corporation continued dividends on the common stock from the time of organization to date at the rate of per cent annually, it's position today would not be nearly as strong as it is and it would have been difficult for il tc weather recent periods of depression without reducing the regular [ per cent rate on the preferred stock. Il would not have been able to build up it's large working capital which now stands in eX cess Of s250 0000,000, compared with approx. ima tely $S9,000,000 as of December 31 1901
 The United States Steel corporation is ir a stronger position today to declar, and maintain a reasonable dividend or it's common shares than at any time sine, it's organization, and as a result of ex traordinary earnings new high records in cash holdings and working capital ars bound to be established.