New-York tribune., 1920-03-15
Big Decline in
Profits Reported
BY Midvale Steel
Surplus Last Year Equiv
alent to $500 a Share.
Compared With s 400 in
1918; Hope to Improve

Like other independent steel COM
panfeR that made q poor showing in
1919 because Of the steel strike and
other unfavorable factors, the Midvale
Steel & Ordnance Company last year
suffered sharp loss in income. Net
earnings from operations, after de-
ducting all expenses incident to
ordinary repairs and maintenance, and
allowances for Federal taxes. we're
only $1e,787,254, compared with $780,
629,o12 earned in 1918. Other In
come brought the years total net up
to $1e,o64,S85, q decrease Of $32,972,-
The 1919 surplus available for
dividends was $l0,588,605. equivalent
to $5.29 share on the $100,00O0OO
stock outstanding (s50 par), CON
trasted with s14.60 share earned in
1918 and $17.78 share in 1917, the
company's banner year. Last years
ing from the total net income $5,334,
ITO for depreciation, obsolescence and
mine exhaustion; $2,802,789 for bond
interest, and $338,720 in payment Of
the guaranteed dividend on stock of
the Cambria Iron Company
Reviewing the years operations
William E. Corey, president, stated
that very early in the year general
hesitation in business became appnr-
ent, due to readjustment from wax
conditions. This resulted in ma
terial decrease in orders. so that the
company was only able to operate at
about go per cent Of its normal capac-
ity for the first eight months The
labor troubles in the, fall, he said, fur
ther cut into operations, so that for
the entire year total production was
but so per cent Of normal capacity.
Discussing the steel strike which was
called on September 20, Mr.. Corey
added:
"At coatesville our operations were
seriously curtailed for only about one
week. AT Johnstown sufficient num-
Der OF men failed to report for work
to seriously curtail our operations. We
were then confronted with the alter
native Of protecting, housing and
feeding men within the plant. and thus
combating the terrorism which had
prevented many of our employers from
coming to work, although otherwise
disposed to do so, or allowing tho
plant to remain closed until the sober
second thought of the men and the
community had time to assert itself.
We adopted the latter plan, both be-
cause we felt it was the least costly
.'' wv OGiICNeN III WOOIQ De
for the ultimate benefit Of the men,
the company and the community
About 1900 men were retained in the
service to maintain the plant in n
condition to permit resumption Of
operations without difficulty"
Since January ! Mr.. Corey said the
Midvale mills have been operating at
about rs per cent of capacity. He
stated he had grave doubts whether
these operations can be materially in
creased, because Of labor conditions
and the absolute necessity of making
repairs and renewals, to insure eco.
nomic operations.
Operating costs are abnormally
high" continued Mr. Corey, because
Of the above conditions and impaired
transportation, the latter being large
" due to the unusually severe winter.
Prices generally for our commodities
arc satisfactory. We are hopeful that
1920 will be an improvement over
1919"
The company's pay roll last wear
amounted to $39,S27. 1922, compared with
$50 .304,T24 in 1918 and s47.555,l97 IN
1917 The average number Of men en-
ployed last year was 22,955, contrasted
with 34,434 the preceding year.
Shipments totaled 826,925 gross tons.
compared with 1,4A8,374 tons in 1918
and 1,6l4,373 tons in 1911,