New-York tribune., 1918-10-30
u. s. Steel Cuts
Extra Dividend
To 2 Per Cent
Net Earnings in September
Quarter Show a Sharp
Decline
$1O1,987,347 Taxes
Large Allowance Made for Ex-
pected Levies Under Pend
ing Legislation
$1O1,987,347 Taxes

Tax deductions cut so heavily into
the earnings of the United States
Steel Corporation in the quarter ended
September so that the directors yes
tcrday decided to reduce the dsbursc-
rrcnt on the common stock. Instead of
the usual per cent extra dividend,
which has been paid in each quarter
since June, 1917 an extra Of per
cent was declared. The regular
quarterly dividends of Il per cent on
tho common stock and 12t per cent
on the preferred stock were also de-
Cared. Earnings after taxes and other
deductions were not sufficient to meet
an extra disbursement of 3 per cent.
The report for the September quarter =
shows net earnings Of $d2,96l $50, COM
pared with $62 ,567 ,39l for the three
months ended juno so and S,243, ,784
for the third quarter Of 1917.
Sl0l ,9S7,347 for Taxes
reached after dcductng all expenses
incident TO operation and a special al
lowancc for income and excess profits
taxes of $l01.9S7, 7,347. This sum, it was
explained. included $56987.347 taxes
Of the September quarter. on the basis
Of existing laws, and sa5 900. 1000 for ac-
count Of additional taxes, which may
be chargoablc for the first nine months
of 1918 under the legislation now be-
fore Congress.
Tho balAncS Of earnings available for
dividends for tho third quarter totalled
S26,665,3ll and after allowing for the
regular quarterly and extra distribu-
tons on the ,Wo classes of stock there
remained a surplus OF 'S3,S4O,56l, con-
tlastcd with $19.0l7.375 shown for the
June quarter after payment Of 3 per
cent extra on the common stock. In
the September, 1917, quarter. when 3
per cent extra was also paid on the
Junior issue, there was q final surplus
OF 81 ,S2f,531. A tabulatcd comparison
OF the earnings of the Septembe r
quarter with those for the correspond
ing period Of last year follows:
1918. 1917.
Net carninGs.. 2,96l,5S9 S6S,243.7Si
Dcpr. and sinking
fund charges.. 10,S92,197 12,99S,4O7
Net income. .... 32.069,392 50 21J377
Int. and premium
charges. ...... 5,4O4,OS1 5,513,04S
Balance. ......... 26,665,3ll 49,732,329
Pref'd dividends. G,30t,9l9 6,304 ,919
Com. divluonds... 17,5l9,S31 21,642,S56
Surplus s.......... 3,S4O,56l 2l,824,55
Net earnings for the last quarter
were on descending scale, the July
total being S15,261 Joy; August, $14,-
O87 ,o13. and September, $13,612,S69.
The earnings for the CORES spending
period of 1917 were more uniform. The
surplus earned on the common stock
IN the third quarter was equivalent to
about 81 = share. compared with S799
IN the preceding quarter and $854 in
the quarter ended September 80, 1917.
Nine Months Results
Net earnings of the Steel Corpora
ton Tor the first nine months OF the
current year. as compiled from the
quarterly statements, amounted to
SlG2,1S0,t01 an increase of $1O9463, :
602. The surplus after all charges, in
GUIDING war taxes, was S116,536, 1888
equal 70 Sl9.19 share on the common
stock. contrasted with S29.G7 a share
earned in the first nine months of 1917,
Ebert H. Gary. chairman of the
board of directors, declined to comment
on the reduction in the extra disburse-
ment on the common stock at yester-
days meeting Higher expenses caused
by the recent institdtion Of the eight.
hour day held net earnings down.