New-York tribune., 1920-02-25
Republic Steel
Failed to Earn
Dividend i'm 1919
Declining Prices, Labor
Troubles and Transports
ton Shortage Cut Into
Profits, Stockholders Told

Tho Republic Iron and Steel Com
pany In 1919 failed to earn It's common
dividend by s1,241,491, and the COM
pany's surplus was drawn upon to that
extent to make up the full distribution
Of $1,632,6S7. In 1918 the company
earned surplus after preferred dvi-
dends of $7,791, 1874, equal to s22.22 a
share on the junior stock issue, COM
pared with only SLAB share earned
last year.
John A. Topping, president, In the
annual report issued late yesterday, ex-
planned that the sharp drop in earning
power in 1919 was due to the following
factors:
The business uncertainty and period
Of declining prices Immediately follow
ing the signing Of the armistice.
Operations adversely affected by la
Dor inef1iciency, lack of transportation
and by series of strikes affecting
both the mills and the mines. which
all contributed to rising costs Of pro-
duction.
Output Subnormal
"As result Of these conditions" Mr..
Topping stated, "a subnormal output
for the year ended December 81, 1919,
followed, the decline in production be-
ing emphasized during the strike period
Of the fourth quarter of the year, while
the average production for the year for
all iron and steel products was about
80 per cent less than the preceding
year"
Mr.. Topping informed the company's
stockholders that, although the net
earnings for 1919 were not sufficient to
satisfy the dividend requirements of
both the preferred and common stocks,
the directors were of the opinion that
uGtion of dividend rates authorized,
particularly as an early return to
normal operations and profits was pro-
spective and has since been realized"
He said that the companys net work
ing balance at the end of the year
stood at $23 3,610 604.
The gross volume of business trans
acted by the company last year was
sA5 5,S72,3 ,344, compared with S75,224 ,110
in 1913 and S7S,325,461 in 1917, the rec
ord year. The profits for 1919 were
S. ,031 S37, from which we're deducted
1881 220 for depreciation and renew
all, $3.50 9o5 for exhaustion of minerals
and $315,1 for excess profits tax and
other contingencies. In 1918 the COM
pany paid out s5,6so,759 in taxes and
in 1917 S9,S7S,657. The profit and loss
surplus at the end of the year amount
ed to $33, ,S80,9T2.
The effect to which output last year
was curtailed by the steel strike and
later by the coal strike was disclosed
in tho figures showing the production
of pig iron, which amounted to only
791 .597 tons, compared with 1,030d11
tons in 1918 and 1862, ,657 tons in 1917
For the year ended December 81 the
output of finished and semi-finished
products was 702, ,040 net tons, against
,024 1927 tons the preceding year and
| ,109,S ,S29 in 1T17.
In commenting on the wages paid the
company's employea IS Mr.. Topping sale
that present rates were up about 1876
per cent compared with pre-war rates
whereas the cost OF living was esti-
mated not to exceed 81 per cent above
the prc-war costs. The average number
Of men employed last year was II, ,7S4
with a total expended for labor of S21,
466 sos. In 1918 $23 TAT ,260 was paic
out to an average of 144,668 employees
! The average earnings n worker last
year were 1922, compared with S1,6l1
in 1918.
Untitled orders of finished and semi
| finished steel products on the books OF
the company on December 81 totaled
389,524 tons, compared with 143 ,385
tons on December 81, 1918, and 1882
! on December 81 1917