The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1918-04-01
GULF STATES STEEL
MAKES BIG RECORD
IN ITS OPERATIONS
Annual Report Shows 1t Is
Now Independent OF
Raw Materials
Markets

The Gulf States Steel company in 1871
broke all records in earnings and pro
duction and through the acquisition oil
certain new properties made itself an
solutely independent of all raw materials
markets, says the Wall Street Journal
All financing was done out of earn
ings, and although the company IN
creased its dividends, 1T was left richer
than it ever was since the reorganization
in 1918.
Liquid assets on December 81, 1910
amounted to $5,449,000 and current lia5lll-
ties were only $435,Oo0. Net liquid assets
were s5,014000, of which nearly 20Oo,9Oo
was in cash and government securities
The net liquid assets were sufficient to
cover $6S5,0oo underlying securities, the
100000 first preferred stock at par, the
$S60,0O0 second preferred stock at par, ana
leave $1,469,000 for the $Sl59,OO0 common
stock, equivalent to about SIS share.
The surplus at the end of the year after
taxes, liberal depreciation, and special
reserve of $1,647O00 was $4,4490OO, sutfi-
cient to coves everything ahead of the
common stock at par and leave $l000WU
for the common. The property invest
ment standing on the books at Sl400O,VO
WOuiu lHuiGdlc d DOVh FeaiuS AOA 1tAA
States Steel common on conservative
valuation of $lS5 a share.
Gross sales in 1917 amounted to Sill, I63,-
900, increase of S4,l3i,VV0 over 1916.
Total output of steel products was 49,
949 tons compared with the previous iec-
ord of 155,147 tons made in 1916 The ton
mage was marketed in II states of this
country and in IS foreign countries. The
development of markets In South Amer
ipa 10 ma ri nnint
the future of this southern steel com
pany. After allowing $1,32S,0 900 for de-
probation and taxes net earnings for
the year were $2S71,000 equivalent To
approximately $50 a share on the common
after meeting preferred dividends.
| The feature of the annual report, which
has just been issued, is the fact that
the company has developed into COM
plete steel unit, dependent only on its
own properties for materials New by
| product coke ovens We're installed and
these should be big earners this year
| New COAL limestone and ore properties
we're purchased. Final work is proceed
4 ing on the Shannon ore mine, which is
| expected to give the company a reserve
! supply of at least 100000,0o0 tons of self
1 fluxing ore
| The management of the Gulf States
Steel company had hoped to have all of
| the second preferred stock converted into
common stock long ago. but it appears
| that SS60000 of the original issue of $4,000,
900 second preferred is still outstanding.
| This stock pays per cent dividends,
while the common pays 10 per cent 1t
| had also been hoped to formulate plan
for exchanging the first preferred for
common. but this plan did not carry the
necessary support.
| The Gulf States Steel company has no
mortgage debt. The bonds for which
the company is responsible are an issue
| of $4,000 per cent bonds of the Self
Fluxing Ore and Iron company, due in
1913. Land purchase notes amount to
| $475,000 The company is in strong
| cash position. Business prospects arc
Unusually good, and present indications
point to new earning record for 1918.
| Last year the common stock of this
| steel company was one of the sensations
on the New York stock exchange, ad-
vancing more than 100 points in a few
| days to 193 1t was on a per cent basis
| then. Now it is on 10 per cent basis
and the stock Is selling about los points
below the high. 1t is understood that
the stock bought on the rise is held BY
interests represented on the board Of di-
rectors.