New-York tribune., 1918-01-30
u. S. Steel Again
Pays So Extra on
Common Stock
Over $60,oo0,000 Goes for
War Profits Tax Out Of
Quarterly Earnings

Directors Of the United States Steel
Corporation by declaring yesterday
another extra dividend Of 3 per cent
on the common stock in addition to
the regular quarterly dividend Of z
per cent from the earnings for the
cd out full year in which distribu
tions at those rates were made every
three months. The four payments, the
last to be made on March 80 next, will
amount to $S6,411 ,42S, or II per cent
on the S508, 1902, 500 common stock out
standing. At yesterdays meeting the
board also declared the regular quar-
terly distribution of ia per cent on
the preferred stock, payable February
27
Net earnings Of the Steel Corporation
for the last quarter of 1917, after $780,
95O,364 had been set aside for war ex-
cess profits taxes, totaled $59,724,1 ,125.
This compared with $G3, ,243, ,784 for the
preceding quarter and $9O,579,2 ,2O4 for
the three months ended June so, 1917,
after reservations had been made for
the governments tax requirements.
Profits Over Half Billion
Had no allowances been made for war
taxes, for the full year the Steel Cor
poration would have had net earnings
Of $510.270.3S0, or nearly S10,0O0,000
iE excess of the amount Of outstanding
common stock. The increase over the
net earnings Of 1916 would have been
in excess of 5,OO0O0O.
In placing the 1917 surplus at S107-
166,021 the company sshowed in is
statement that in computing the war
taxes for the first nine months it had
run over the figure required by S10,-
545 POP. which was added in the final
readjustmcnt.
The statement also showed that
500, ,OOO. 900 had been set aside from the
years balance "for account Of eXpcndi
lures made and to be made IN author
lied appropriations for additional prop
erty. new plants and construction.
During the six months ended June 80.
1917. the corporation expended on ad-
dtions and new construction the sum
Of Sd3 900 600.
Following yesterdays session of the
board and The finance committee. FL
bert II. Gary. chairman. estimated that
tn total war taxes would consume APP
proXimately $3.50. 100000 of the com
panys 1917 earnings, indicating that
the amount set aside from the first
quarters earnings for this purpose
was about S56. 800 900. Mr.. Gary de-
clincd to make any comment on the
statement Of the last quarters opera
Fuel Administrators recent order for
conserving coal On the earnings of the
current quarter.
Lessening Margin of Profit
The net earnings for the December
quarter by months were on descend
ing scale, showing not only the poor
trans sportation conditions that began
to become acute during that period.
but, what is moro Important the first
effect OF price regulation by the gov
ernmcnt. The last quarters revenues
were divided as follows: October SOL
S35,99l; November, S19,9O2.S62: De-
ccmber, S17,9S5.272. In this conncc-
WV Ne'o P'iilSt OUC ~ NLccl OOC-
poration officials that these declines
were brought about not by substan-
tlal decrease in gross business, but
moro by a reduction in the margin of
profit. When tnc complete annual rc
port is made public it will probably
be shown that gross sales were greater
than in 1916, but the net earnings.
based on the quarterly reports. will
show a loss of more than $5O,oOo,oOO
due primarily. however, to the heavv
deductions which have been made on
account of the Federal war taxes.
\ Comparative Statement
After allowance was made for thc
payment OF tho preferred dividend the
surplus for the December quarter
amounting to $37,S6l,l ,l29. was equal to
H'1l Il share on the common stock
against SS.5d share earned in tho
preceding three months. For tho fu,l
year the indicated earnings on the
JUNIOR issue we're equivalent to 46'3
per cent. against AS.4 per cent earncS
IN 1916 and 9.S per cent in 1915. Thc
earnings for the December ouarter
compare in detail with the corresnond.
ing quarter Of 1916. when no allou.-
anccs had to be made for war tavoc
as follows: '@NeS'