The Birmingham age-herald., 1916-05-01
STEEL CORPORATION EARNINGS GREATEST HIN THE ENTIRE WORLD First Quarter Shows Profits on S24O,OOO,0OO Per Year Basis PROSPERITY FELT
 IN OTHER LINES Inference Drawn From Report That Present Conditions Will Con-
 tinue Through 1917
 at Least
By HOLLAND

New York, April --(Special.) .)-Charles M. Schwab's prediction which he was some years ago reported to have made that the United States Steel corporation would in the course of few years earn, net, s200, 0,0O0. eco, is likely to be justified in the year 1916. In fact, when the report was published, on Wednesday morning last, that the net earnings of the Steel corporation for the first three months of 1916 were $6o 700, ,0o0 round numbers, the remark was often made that if the three remaining quarters of this year do as we'll as the first quarter has done then
 MT Schwab's prediction will be found to
 have been an underestimate by about S4o,- GOO, ,0Oo
 Inquiry was made today by some who in a general way have knowledge of the earnings not only of American, but of
 foreign, industries so that it could be
 learned how those of the Steel corpora
 tion compared with the earnings of other corporations. The opinion commonly ex- pressed was that no industry anywhere in the world has ever made a report of net earnings for a single quarter whose figures were not considerably below those reported by Judge Gary on Tuesday of last week.
 Study of these statistics led several who are competent to pass judgment upon them to speak in this way: If it be presumed that the prices which this corporation now commands for it's prod ucts are not hereafter considerably in- creased, then sG0, 700.000 fairly well repre- sents the production capacity of the cor poration expressed in dollars for a. De- riod of three months.
 l In proof of this view, Judge Garv's statement that the United States Steel corporation has now little available steel capacity was quoted.
 l What Judge Gary meant to say in the l opinion of those who were commentins. 1 upon his report, was that the plants of the corporation are now running to their
 null capacity. If that be so. and if pres ! ent prices are maintained, then it is reas- enable to Surmise that in the remainin 9 quarters of the. remaining year net earn lngs will be as largo as those which
 Judge Gary reported for the first quarter | of the year.
 1 Therefore. it is assumed that the net
 earning capacity of the Steel corpora-
 ton, based upon present prices is not
 far from $240O00,OO0 a year.
 I ANOTHER POINT OF VIEW | fAHotHer pOnC or view refers to the nigh character of preparation which the
 management of this corporation has been
 enabled to make The report is an ob-
 Ject lesson in the department of prepara-
 tion Without thoroughly equipped plants, 1 without command of skilled labor and without adequate transportation and dis l rrlpution facilities. as well as a suffi- l cent supply of ore, it would have been impossible for this corporation to report Q Jump in earnings in three months of d single year over like period of the previous year of nearly $50,000 0Oo.
 IL was in the early spring of last year 1 tnat two or three members of the group winch has had chief part in the impor- l tant international financing of 1915 said that the record made by the United states Steel corporation in 1916 would fur Ilsn the best evidences relating to domes- JIG industrial prosperity For it was known a year ago that the Steel corpora ton dld not seek, and in fact would not accept orders of the kind technically kho"n as war orders. Of course, it's prod ucts were likely to be bought by man asers or industries who had accepted and were executing war orders.
 1 careful estimate made last fan .,f
 tue olrectlon which the products took aiter they were sold showed that about o' per cent, as raw material so to speak. entered into the manufacture of munitions ana equipment of war. That, however, was something that the United States
 Steei corporation had nothing to do with. Furthermore, in May of last year. these
 men pointed to the figures reported by
 Judge Garysof the net earnings for each