New-York tribune., 1919-07-30
u. S. Steel's Net
$34,33l,30l in
Second Quarter
Report Shows Increase Over
Preceding Three Months;
Gary Predicts Improve
ment in Current Period

Net earnings Of the United States
Steel Corporation in the three months
ended June 30 last, were $34,331, ,3O1
an increase of $817,917 over the pre-
ceding quarter, and a decrease of $685.
100000 compared with the correspond
ing period a year ago. The income
statement issued yesterday after the
quarterly meeting of the directors and
the finance committee was a surprise to
Wall Street, as it had been widely be-
lieved that the earnings in the June
quarter were substantially smaller than
those for the three months ended
March 81.
That the corporation will do even
better during the curr%nt quarter than
in the last was indicated by E. H. Gary,
chairman of the finance committee
Judge Gary said that the plants of the
corporation are doing "a very good
business now and see no reason why
He stressed the seriousness of the
present foreign exchange situation, but
in his opinion it is not critical or
dangerous to the progress of domestic
business.
Good Times Ahead
"The United States is big and sue
cessful business institution" said
Judge Gary, "and if the people have
sense enough to take advantage of the
opportunities there is no question but
that the greatest progress in the his
tory of any country is ahead of u.s."
Considered month by month, June
made the best showing during the
second quarter with S12,371,3 ,349. May
l0 Il A1% ~ = n
while the April net was 11,027,393.
lowing decreases: April, S9,617,589;
May, $10,561, ,645; June, $8,046,856. In
the following table is a detailed COM
parison of the income account for the
June quarter with the corresponding
period a year ago;
Net earnings 1851 'son sss, ,s5s .so1
Depreciation n d
sinking fund 80. 11,OO7,195 1O,157 ,8O8
Net income ....... 23,324 1O6 so 1893 ,4SS
Interest and pre-
MUM on United
States bonds 80. 6,356,810 5,474,S33
Preferred dividends. 6,3O4,0l9 6'3O4'9IS
Common dividends. 6,353,181 21,6O2 1867
Surplus ........... 6,SOS,5S7 19,O17,37G
1t was stated that the net earnings
of the June quarter were arrived at
after all operating expenses and est-
mated Federal income and war excess
profits taxes, but the amount set aside
for the latter was not divulged. The
policy of emitting the tax reserve was
begun at the close of the March
quarter.
The total net earnings of the Steel
Corporation for the first half of 1919
as compiled from the quarterly re-
ports, we're S67,844, ,6S5, falling off
of $51 STA .130.. The balance, after pay
ment of common dividends, was $1O,-
130,903, decrease of S23,91S,944.
Foreign Business Fair
1t was pointed out by Judge Gary
yesterday that only moderate pro
portion of the Steel Corporations
business at present is coming from
foreign sources. eve have received
no big orders from abroad" he said
"but our foreign business is fairly
good"
The directors at their meeting yes
terday. in addition to approving the
income account, declared the usual
quarterly dividend of / Il per cent on
the $508,302, 500 common stock and 1 q
per cent on the preferred stock, the
former being payable September 2e
and the latter on August 80. The sur
plus, after allowing for the preferred
dividend requirements of the June
quarter, was $11 ,562,368, equivalent tc
229 per cent on the junior issue, or al
an annual rate of more than per cent