The sun., 1919-10-29
j. s. STEEL GAINS
IN NET EARNINGS
Statement for Quarter Ended
on September 80 Shows
S6,OOO,OOO Advance.
TOTAL ALSO INCREASES
Strike in Last Part of Month
Pulls Operating Profits =.
Down Somewhat.
TOTAL ALSO INCREASES


The quarterly statement Of the
United States Steel Corporation, giving
the financial results OF operations for
the quarter ended on September 80,
issued yesterday afternoon. was an
agreeable surprise to Wall Street and
the steel Industry, showing as 1t did
an advance Of nearly 100000 in net
earnings. after all charges, taxes, in
terest, &C., in comparison with the pre-
ceding quarter. The total earnings for
the third quarter of the year were
s40.177.232, or s3.43 share, on out
standing common stock. after deducting
all charges and preferred dividends,
against sS4.SS1. Sol, or s28o a share,
earned In the second quarter of this
year.
All through the quarter there was
steady increase in earnings until the
last part of its last month. September
when the general steel strike pulled the
operating profits of the corpora Eon
down somewhat. Even with that handi-
cap September showed better earnings
than did the first two months in the
preceding quarter. The best month of
the third quarter and the best month
OF 1919 was August, when earnings, be-
fore charging interest on subsidiary
companies bonds, were s15.16o.l1. That
amount was cut down in September by
the steel strike to 2,SS9 500. The
earnings of July, the first month OF the
third quarter were s14,2S6,994. The
best earnings of any month in the last
preceding quarter were in June, when
they aggregated s13.0s5,e29.
The income statement came as a con-
siderable surprise to steel men and to
Wall Street as well, where estimates of
the probable showing to be made were
average guess as to what the report
would show was in the neighborhood of
sS6, 900. 900, but hardly any one had been
sufficiently optimistic TO place the esti-
mate at more than sSS,00o.000 AS has
been the case since the first of this
year. the report failed to show the
amount set aside for taxes. Up to jan
uary the quarterly statements had been
made to show the amount set up for
taxes, but that practice ceased. and since
the final 1918 report no such item has
appeared in the statements. A year
ago more than s101, 900 was set aside
for taxes for the third quarter of the
year.
While the report for September shows
a falling OF as compared with that OF
August. due to the general strike of
steel workers, the decline was not as
great as many anticipated It would be.
or course only eight days of the steel
strike were included in the September
| report but Il will be recalled that promi-
| nent Off cials of the steel corporation de-
clared that the first ten days of the
strike were its worst, and that after
/ their passing they were able TO get back
! to very near the basis of operation. at
which they were going prior to the
strike.
Although earnings for the quarter just
ended were sufficient to allow for an
extra dividend, none was paid, only
! regular disbursements being ordered by
( the directors. Those payments are / q
per cent. On the preferred stock, payable
| on November 2e TO stock Of record on
common. payable on December &c to
| stock Of record on December g.
| The total earnings of s40.177,232 were
| reduced by charges and allowances for
| depreciation of sl1.065,sO3 to s29,111,-
429 against a net income of s23 ,324,107
/ for the last previous quarter During
the last quarter interest charges were
not much changed and the balance avail
able for dividends was $23,763,S67
against s17,967.2s for the last previous
similar period. The final surplus for the
last quarter after payment of dividends
was s11.105,167. against s5,s0s.5s7 In
the last preceding quarter.
Following is comparison OF the i'm
| portant features of the statements fol
the June and September quarters:
September. June
Net earnings after taxes. so III, 2S2 ssI ISL 20
Net income. NEUTRALITY-SUSPICIOUS.. " lll,i29 1851 IN
Balance for common. ....... IL 1888 II eea
Per cent. on common. 22o "a
surplus .............-....... IL los. l67 $50, IS
The detail statement of the corporation 70
three months ended ON September 30, as givel
out yesterday, follows:
Earnings before
charging inter-
ID est on the subsi-
III diary company's Balanc
hOpda ttsfa