New-York tribune., 1916-07-26
Stocks Decline as Street
Waits on Meeting of
Steel Directors.
EARNINGS EXCEED
ALL PREDICTIONS
Net of $S1,126,04S Sets a New
Record-EXtra Dividend
PleaSeS.

Wall Street waited yesterday for the
announcement of the Steel Corpora
tion's earnings and dividends, and in
the mean time stock prices drifted
somewhat lower Barely more than a
nominal market existed in many issues,
dealings dropping to 295,oOo shares,
compared with 100000 the preceding
day.
The remarkable earning statement OF
the United States Steel Corporation for
the June quarter and the announce
ment of the declaration of an extra
dividend of per cent on the common
stock did not come until after the
close of the stock market, and conse-
quently did not reflect in the course
of security prices. The net earnings
disclosed -totalling $Sl,l26,O4S, with a
balance available for dividends of
$65. zoe, ,260-were far and above even
the most optimistic predictions in the
Street Preliminary unofficial estl-
mates had ranged from $72,OOO.0OO to
SS0,00000O, while the average was
around S75,000,000. The figures set a
new high record, comparing with pre-
vious record of 500, 713 ,624, made the
first three months of the year.
Declaration Of l per cent extra on
the common stock, calling for an ap-
preparation of S5,0S3, 026, was very
conservative, considering tho total Of
earnings for the quarter. The fact,
however, that the directors deemed it
advisable to make any distribution at
all at this time in addition TO the regu-
lar disbursements, particularly when
incoming business has shown signs Of
slackening, was accepted as an express
sion of confidence in the outlook by the
leading financial interests in the coun-
try, as represented in the Steel board.
In some quarters per cent had been
expected but on the other hand. there
were those who believed that the dl-
rectors would prefer 10 strengthen the
position Of the corporation further by
withholding extra dividends until later
on. The splendid showing Of the cor
poration for the last quarter revived
yesterday discussion of the establish
ment of q special reserve against a
period Of poor business, when dividends
on the common stock might, without
such fund, have TO be omitted.
As has been the case for q year now
ing boom in the American steel indus
try earnings Of the Steel Cor
poration have increased steadily and
at times spectacularly. Last quarter
the progressive Improvement was again
noted From April net of $25,423,61o
the item increased TO 27,554,SS9 in
May and 20 S2S,147,473 in June. For
the six months of the current year the
corporation has earned more net than
for the full twelve months OF 1915 and
almost twice that of 1914.
Professional traders had the stock
market very much TO themselves yes
terday. A few issues recorded net
gains on the day, but the tendency Of
the general list was downward. Losses
in some of the industrial speclaltles,
such as American Beet Sugar, Amer
lean Zinc, Butte & Superior, Mexican
Petroleum and South Porto Rico Sugar
were / or points or more. Railway
shares as a rule about held their own.
United States Steel fuctuated between
a high of S6l2 and low Of 85A and
closed unchanged at Sc.
Reports of the leather companies
yesterday, and the resumption Of divi-
dends on the preferred shares of the
American Hide and Leather Company,
after a lapse of ten years, Indicated
that large profits are being piled up in
other industries than the iron and steel.
Foreign exchanges were steady yester-
day. Call money renewed at 212 per
cent. with some new loans made at
per cent.