The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-10
.CRUCIBLE STEEL'S
NET $40 A SHARE
Report for Last Fiscal Year Is
S11.780,02l Profits After
Charges.
GROSS SHOWS INCREASE
Company Has Untitled Orders
for Output Of More Than
Three Months.
GROSS SHOWS INCREASE

The report of the Crucible Steel Com
pany OF America covering the fiscal
year ended on August 81 1920. which
was made public yesterday. showed that
during the period the company made net
profits. after charges and Federal taxes.
II $l1.7S0,021. or $20.O6 share earned
on the $4,000. 900 of its common stock
outstanding, after deduction of its pre-
perred dividends. In the preceding fiscal
year the profits amounted to s9,574,20S,
or S31.29 a share on the SIS. 900 OF
common stock then outstanding. That
Improvement, it was declared yesterday,
vas the result OF the higher prices and
the tremendous demand for steel products
which have been maintained throughout
the fiscal year, with the exception OF
the last several weeks.
Total profits. after Federal taxes, the
report showed. were $17,274. 4S9 as con-
,rasted with s14.093, 005 in the preceding
year Renewals and depreciation totalled
s3.775. POI. and interest ON bonds s312,-
S33 For adjustmlnt of inventories
s1.4o6. S44 was written off. leaving net
crofits of s11,7S0,021 Preferred divi-
dends were $1.750, 900, leaving o surplus
available for the common stock of
S10.03O,021
During the year" says the report,
signed by Fl. S. Wilkinson, president of
the company. and its vice-president.
John A. Mathews, "the steel industry
has suffered very largely from labor I'M
rest which eliminated in strikes in diff
ferent directions, not alone in the steel
business but on the railroads. in coal
mines and various other industries that
furnish commodities necessary for use
in the manufacture of our crucible steel
products. 1t has had constantly in
creasing costs in almost all of the raw
products used in manufacturing steel as
well as additional increases in salaries
and wages to its employees.
There is at the present time a de-
mand for a decrease in the selling price
of all commodities. based entirely upon
the desire of every one for a decrease in
the high cost of living We find it inn
possible. however, TO make large reGuc-
tions along this line, principally be-
cause of inability to obtain q sufficient
amount of raw products at a reasonable
cost, due largely to lack of. railroad and
transportation facilities to supply the
demand, which naturally leads to in
creased prices for the limited amount
produced Labor unrest, which has de-
creased production. and lack of trans
portation facilities have led to the
highest cost for fuel and raw products
that have existed for many years. and
until this situation can be relieved 1t
will be impossible to manufacture our
output at anything like the costs We are
anxious to obtain.
ut is with q great deal of satisfaction
that we report to our stockholders that
we have finally met all the requirements
of the Government in our Federal in
come tax matters. that all taxes, includ-
ing back taxes. which were under con-
troversy. have been ascertained and paid
IN full. 1t Is only fair to the management
to state that we have paid. since making
our last annual report, S12.T66,114 for
taxes. this sum including the amount of
unpaid back taxes in dispute and the
taxes from August 81. 1918. TO August
81. 1919. 1t has been somewhat difficult
to meet this amount i'm addition to our
building programme and has necessarily
required the greatest economies possible
and the conservation OF all earnings to
meet these demands.
ut has beenthe policy of the company
in so far as possible to accept only such
orders and contracts as call for delivery
within three months. this rule being es
tablished on account of the steady adj
vance In the cost of raw materials. The
company has on its books untitled or
ders for more than three months output
after deducting suspensions and cancel
lations. which I'm our business have not
been of great volume. The tool steel
business has not been subject TO the vio
lent fluctuations in prices that have af-
fected other branches of the steel in
dustry. and for this reason the average
price of tool steel has remained prac-
tically the same throughout the year"