The sun., 1919-03-31
WAR TAX DROPS
U. S. STEEL'S NET
TO $137,532,377
1918 Gross Nearly2 Billions,
but Government Leyies
Take S297,645,048.
SURPLUS is s28,985,35O
Revenue Eclipses Record, But
Rate on Shares Declines
From S39.15 to S22.1O.,

With gross revenue for 1918 at the
record figure OF nearly $4,000, 900, 900
the United States Steel Corporation
report for 1918 shows net earnings
after all charges, taxes. interest, &c.
of $1s7,5s2,377. or at the rate Of s22.10
share on the s5os.so2,5oo common
stock after the deduction of dividends
on the preferred. This compares with
net earnings OF $224,219,5e4. or ss9.1S
on the common stock. in the preceding
year. and represents a decline of $685.
6s7.ls7. due, largely to heavy increases
an operating costs and Federal taxes.
The total amount set aside for taxes
for 1913 reached the tremendous sum
Of $2s7,645,04s, OF which s274.277.s35 is
represented in the reserve for Federal
income, war profits and excess profits
tsxes, and the balance for regular
taxes. In 1917 the total taxes provided
for were S252,26S, SOS, OF which amount
e23s, 465,435 was for account of Federal
taxes. Another item which resulted in
n largo cut in net earnings despite
heavily increased business was that of
wages. which increased moro than
800 100000 from $347.370.4o0 in 1917
to $462, e63,5 24 in the year Just ended.
The net earnings OF the Steel Cor
poration and its subsidiaries for the
year. after provision for all taxes. but
before charges for interest, deprecia-
ton. replacement. &C. totalled $685.
3S1.10&. O decline OF s95,sS0,367 from
the 1917 figures. There was drop OF
tall fn a
amount set aside for depreciation, ex-
craordinary replacement and sinking
funds than IN the preceding year, while
the amount paid in dividends on the
common stock was less by $2o,SS3,1oo.
An additional allowance for amortisa-
ton in the amount OF sl2, 900 brings
the surplus for the year down TO $2s,-
ess,350, which compares with ss2,5oo,-
4a7, q decline OF s33.o;o,0s7.
Revelation I'm Balance Sheet.
The report Is a revelation. however. In
the matter OF Its balance sheet, which
d!scIoses-a net working capital at the
end OF 1918 OF S4S5,S5+.Sss. or about
seb.4S a share on the common stock.
This compares with a working capital
OF S459,s45,S14 at the close OF 1917 and
s4es, 20S,437 at the end OF 1916. ina
balance sheet shows total assets and
liabilities OF $2,5T1,6l7.l76, as against
s2,44s,55o,20s on December 81. 1871
Current assets total $sss.13s.os1, as
against s7se.ss7.3s7 the year before. and
current liabilities at the end OF 1918
were s3s7,Tsl.4s2, as compared with
Ss40,35l,5s2 the preceding year.
Following Is q Table OF the salient
features Of the comparative income ec-
count for 1918 with net change from the
1917 figures:
1914. Changes.
Earnings before chars-
ing int crest on bonds
and mortgages OF
subsidiary compan- - -. 80. 49,
Less .nteres. on out.
standing bonds and
MORTGAGES OF TIE
les ...'............... s.sso,<4 Inc. G.1n
less charges and al
csaron applied as
TO depreciation and
extraordinary re
placement funo0
and nnking funds
of subsidiary COM IN.
rs 'n sssas fund; ''1'''' 40 ''
CORPORATION bonds 7.pl. <5 Inc. sA.isz
ysa- ''.......... I5sssi. ess Dec ss.IJ7 os,
Deduct interest on
z. s. stesl Corpora
ton b o n ds out
peducs premium ps,d
on bonds redeemed.
on subsidiary CON-
On o. 8. Steel Cor
poIssion bonds. ss Z, 81 Inc =; sis Z,
edd n.. bsi.nc. 81 -'-''' ~ ~ ~ ~
eEsdi,s. includinS
adjustments OF var
s .SS: 'c:oun.. ,sss a Dee .sssis Il
Pr Pref f 7s...... Sns.sn \ -...
Common (sla. resu-
lar SIS. extra ~;
1911. regular 6%,
extra 1se>......... Il,issSo Dec. eo.ss. 100
E.. DEDUCTION. a; ''''' ' ''''''''''
Ad@tionsl allowances
20 cover anortira-
Of fsciiities in
stalled for produc-
tion of articles
oontributing 70
prosecution Of war ii,ns,oo Inc. p.,is.eoc
Appropriated on go
surss for addition
plants and con-
sslsnes 10 undivided -. -
.~rrnlus .,...,,,,,,,. ss.ssSsSo Dec as-BTo cs1
New Record Mark for Gross.
Although tho gross revenue Of the
steel Corporation during 1918 was well
bbove that of the preceding year, the
report shows that the operations as rep
resented by production and shipment OF
products did not on the whole reach the
totals for 1917" This IL explained by tn,
abatement further along in the report
that tho prices received for all prod.
pets for the entire year averaged slightly
higher than those received for the pre-.
seeding year" indicating that while the
total production was somewhat lower
the increase In prices obtained for iti
products brought thu corporations gross
revenue up to the new record mark OF
k1.744.312.163, an Increase OF moro thar
ksO. 100000 over the 1917 figures.
The production figures as set forth ir
he report show n decrease in the tota
production from mines and factories