The Detroit times., 1916-02-12
High Records Daily
Made for Earnings
and Production
INDEPENDENTS
ARE INCLUDED
Large Profits Now Ac-
cumulating On War
Deliveries

\ NEW UlkH ItAO4hs ANA NaA 49, > N-A~
production are daily occurrences in
the steel industry, which never was
in better shape The outlook is so
optimistic that no change in condi-
tions can be. seen for some time 10
come.
| During the next six months earn
ings beyond the most optimistic es-
timat,S may be realized. This ap-
plies 10 the independent steel COM
| panies as well as 10 United States
( Steel The big earnings OF the ord
nance companies and other plants
that accepted war contracts are yet
TO come
American Car 4 Foundry, Ameri-
can. Can, American Locomotive.
Baldwin Locomotive and other con
Germs that accepted war orders made
little or nothing on these contracts
last year but deliveries are now un-
derway and profits will accumulate
rapidly. Earnings OF many OF these
companies will be published from
time 10 time over the next II
months. and the public will then be
given IFS firs, definite idea OF what
I outs ide" manufacturers are capable
of doing in the way OF earnings on
war orders.
United states Steel corporation is
not a war order company. II does
not propose TO engage in this line OF
business. but the management might
adopt different policy II the United
States became involved In hostili-
ties with another nation. With its
capacity for turning out 10000, 600
tens of lngots annually, a produc-
tion As large as tba; of the whole OF
Germany. the position United States
Steel would occupy in case OF war
needs no analysis.
United States Steel is satisfied
with its profits on commercial steel.
Net Of si20. 0.0U0. 900 in the first half
OF this year void cause no surprise.
IN this period Steel will earn as
much as Il has heretofore earned in
a normal full .-rar. II earnings do
reach the amount mentioned, there
will 5e surplus available for COM
mon stock OF over s75 900 900, equal
to abort SIS a shade. or at the rate
OF $50 annually. sufficient 10 pay
dividends on the common at the rate
OF FIVE ver cent year for period
I OF three years.
Republic Iron & Steel promises
TO make a showing as satisfactory.
froI1 tho viewpoint OF surplus for
the common stock. as United States
! Steel.
Reptile Steel earned at the rate
/ Of s2J a share for it's common in
the last garter OF 1915, and it's earn
/ ings are now running at the rate OF
7 $50 a share. IL is evident from
these earnings that II will not be a
great fhile before Republic satisfies
I ali dividends in arrears on the pre-
| ferred stock. These back dividends
amount TO II per cent. Four months
earnings at the present rate would
almost wipe them out.
Crucible Steel is said TO be earn
( ing at the rate OF close to $1,000
600 monthly. before deductions. Ger
tain interests are inclined 20 dis
credit this estimate. but IL Crucible
ia earning $1,000. 900 to $1,000. 900 a
month, there Is little room for com
plant.
Bethlehem Steel will lead all com
panieg in the matter OF earnings on
common stock With It's earnings
running al the rate OF s4.000,00 70
$4,000. 900 a month, new value is be
ing added 10 the common at the rate
OF $40 TO s3s a share a month
Whether these profits are paid out
In the form OF dividends or go into
new construction, the equity Of the
common shareholder Is still there.
Other steel companies that will
make record showings In the first
half OF this year include Inland
Steel. T.ackawanna Steel. Midvals
Steel, Cambrit Steel. Youngstown
Sheet e. Tube. Pennsylvania Steel
, Jones & Laughlin Steel and Pitts
, burgh Steel