The Birmingham age-herald., 1917-03-29

ended December 31, 1916. shpn5 .1. waei extent the optimism of the 7tiy de Hrb- lie" was warranted.
 UntI the actual figures 5i fei4iI it is difficult to realize how e ents3fe. public" plunged in Steel cori1iol EeIe
 they are: During the F mo1las ended
 with December 3l. 1916 all of naHs- actions registered, on the 1ew yoiK Stock exchange in Chicago D. North
 western footed Up Cs,915 share rta a every share of Northwestern ait H on the floor, all such transact, pens
 quickly printed as soon as ti aV oetuf. on the ticket tape. Great Nor horn was
 more active; last year S6O0Oo arss n. that stock changed hanGs. Atcl aa fas even more so, the years tot saief mounting up toS74,OO0 shares
 Pennsylvania has outstandin taa4
 amounting to $4990OO,O0O That aac-
 tically the same as the $50S,o coo 6ui-
 standing Steel common. But du nE tl0
 whole of 1916 the transactions in Fenn- sylvania amounted to l,1l6,0O0 shares
 the same F months trading in Stesl rom
 mon aggregated 8 495 750 shares.
 Never in the history of the NeR iQsS
 Stock exchange has there been sut trg.
 ing in any one stock. But then, sse.
 has there been such earnings as N0s2 just reported by the Steel corporat tnI
 1916 Back in 1904 the Steel corpo.a .oa.
 earned $444,o0000O gross; for 1908, another
 year of general industrial depression, the company gross amounted to $4S2, 600 coo
 for 1914 they were S55S. .0C0, ,O90 Those figures
 show the small end of the company's s earning power As to the other end, prior to 1916, the largest gross was $796,- 000,000, reported for 1915. Last year the Steel corporation earned, gross, Sl,231, = 473, 799. s. Last years surplus applicable to divi- dends on the $50S 000,000 common stock was no less than $246, 900, compared with s49, ,S4S, 600 for 1915, and a deficit of $1 ,S47, GOO. for 1914. That is, the per cent cumulative dividend on the $36o, 2Sl O0o preferred stock was not earned in 1914 lby $1,S47, 900.
 Another way to state the Steel corpora tions earning power is to point out that last year, after increasing depreciation allowances by s6, ,799000, 4S1a per cent was earned on the $50S, GOO 900 common stock, compared with 9.9 per cent for 1916; 65 per cent on the : per cent cumulative preferred shares for 1914; 22.5 per cent on the common for 1913; 15.1 for 1912; 15.4 for 1911; 242 for 1 10; 2l.9 for 1909; 12.6 for 1908; 25.1 for 1907; PIP for 1906.
 Those who began to buy Steel common around 3S, however, figured on something else besides the actual cash dividend re- turns immediately ahead There are two ways all we1l-managed companies protect the dividend prospects of the sharehold- CTS; one is by 'ploughing in current , earnings; the other by piling up surplus for insurance against an off year. From the statement at hand it is plain that l the Steel corporation management has adopted both of these methods.
 111 Dr,ft ion, lNaO f1 ntN- erations April 1, 1901, no less than s5oS, 3I7, ,6S4 has been spent in additions and improvements. Of that staggering total. $s32, ,029 49S has been taken from current 1 earnings. No such ploughing in of pure 100 per cent fat has ever before been known in the corporation history of this l or any other country.
 1 So much for the policy of protecting dividends in lean years to come. For 1 report at hand shows current liabilities of $92 942, 436, with current assets of $50l,-
 150 S73, including $40,337, ,5s3 cash invested in
 "sundry marketable securities; ,794 i in ''time bank deposits and secured
 demand loans and s14S,S 4,761 in leash in
 banks and trust companies subject tC
 cheque'' That makes $1S9, ,263,000 total cash for the Steel corporation has in bank, either on time or demand deposits
 That, it is safe to predict, is the high ] ecord in corporation bank accounts.
 Besides, when the books were closed
 cn December, 31, 1916, the Steel corpora