Newark leader. ([Newark, Ohio]) 1917-1946, 1919-09-05
AN INDUSTRIAL EMPIRE


States Steel Corporation was organ
ized In it's first year it was capital
lied at $1,383,OOO,O0O. Since that
time the capitalization has been in
creased to 81, ,451, 100000. The report
of the Corporation for 1918 shows
that it owns 124 blast furnaces; 334
open hearth furnaces; 38 Bessemer
convertors; 313 steamers and barges;
$1,000 cars; 1921 locomotives; 1921
miles of railway and 1,OOO,OOO,OOO
tons of iron ore.
The position of the Steel Corpora
tion in the early years was not
satisfactory one. 1t paid dividends
on it's common stock in 1901 and 1902
but it passed the dividends in 1904
and 1905. The total assets of the
Corporation in 1902 were reported as
$1,584, 100000. It's total capitaliza-
tion in that year was $1,42O, 100000.
Rumors were ripe to the effect that
these assets We're grossly overestim-
ated. So generally were these rum
ors believed that the common stock
of the Corporation dropped to 10 in
1903 and to 83s in 1904. The Corpora
ton was in good hands. The In
dustrial Empire builders having it in
charge were farsighted, keen, aggres-
sive and had excellent backing. Dur
ing the intervening years they have
more than made up for the stock
watering and frenzied finance of the
first years.
The total assets of the Steel Cor
poration have increased one billion
dollars since its organization. At the
present time they are $2,572,OOO,OOO.
The process Of building up the
property has been a slow one. Year
by year tens of millions have been
taken out of earnings and used to
reconstruct and expand the plant.
During the first years of its exist
ence the Corporation allowed about
$5O,00O,000 a year for depreciation
and repairs. In 1916 this fund passed
the hundred million mark. In 1918,
the total allowance for depreciation
and repairs was $137O00,O00. The
unexpended balance in the deprecia-
ton account has grown with enormous
rapidity. AS late as 1908 it was less
than $54,000,000. In 1918, it was
$191 100000. That is, the Corpora
ton had in its bank account nearly
$200,0O0,00O which had been appropri-
ated for the purpose of making re-
pairs and providing for the upkeep OF
the plant. Ordinary repairs had been
made; ordinary upkeep had been pro-
vided for and after all of this was
done, there remained two hundred
million balance. At the same time
the Steel Corporation has made huge
expenditures for new construction
taking money out of earnings and
building additions to the property.
The total amount expended for new
construction in 1918 was $13O,OOO,-
600. The total amount expended dur
ing the II years is $801, 100000
The surplus carried by the corpora
ton reflects the same prosperity. UP
to 1907 the surplus was less than
S10O,000,000. Until 1915 it remained
under $2OO,O00,O00 In 1918 the total
surplus carried by the Corporation
was $467, 100000.
Detail might be added to detail,
but sufficient facts have been pre-
sented to show that a corporation
controlling one of the most important
industries of the United States can
establish itself on so fimsy footing
that it's stock sells for practically
nothing; and, in the course Of II
years, without asking for any ad-
ditional investment in the property
from stockholders or outsiders, can
add a billion dollars to assets; can
rebuild the property, while at the
same time it is paying handsome
dividends on preferred and common
stock.
This industrial empire has grown
from within out of the wealth pro-
duced by the workers and turned over
"a billion in seventeen years-to the
stock and bond holders of the Corpo-
ration who have played not the slight
est part in this wealth production.