New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-27
b. s. Steel Net
Profit Smallest
Since M'ch,'l
Earnings for Three Months
insufficient TO Meet Com
mon Dividends. but Larg-
er Than We're Expected
Csc Share ON Junior Issue
Total for 3 Months After
Taxes $21,392,OI6, Due
to Dull Business in Steel

The United States Steel Corporation,
IN the second quarter of the current
year, failed to earn the dividend re-
ouirements Of $1.25 share on the
s5oS.So2.500 common stock outstanding
bv SASH SOS, but directors yesterday
declared the regular distribution, draw
inc upon the undivided surplus to that
extent to meet the full payment. The
actual surplus, after allowing for the
preferred quarterly dividend of ls$ per
cent, also declared, was $l,7S2,11S,
equal to IS cents share on the junior
stock issue. This compared with $3.50
a share earned in the March quarter
and 1896 g share earned in the June,
1920, quarter.
Net earnings of the corporation for
the last quarter, after operating ex-
uenses and taxes, were $21, S92,016, the
smallest for any quarter since the first
three months of 1915, when 12,457,S09
was reported. The latest earnings com
mare with s32,2S6.722 for the March
quarter and S43,155,706 for the June
ouarter a year ago. The big decline
in the last quarter was due to the
duIlest condition the iron and steel
industry has ever faced, according to
trade authorities, profits being also
affected by heavy price cuts.
Nevertheless the Steel Corporations
earnings for the June quarter were
better than had been generally ex-
nectad. in view of the large deficits
previously reported by some of the
leading independent steel companies.
In statement issued after yester-
davis meeting Ebert H. Gary, chair
man of the finance committee, declared
that while business in many lines, in
ending iron and steel, is still dull and
besitatine, the outlook is not discourag-
;nr or doubtful. Sentiment, according
to Judge Gary, is growing better.
The earnings of the June quarter
compare in detail with the correspond
ing period year ago as follows;
1921 1920
Nat earnings. s21. ss2, ole s43,155,7o6
Depreciation and sink
Net hs income corn 1s.226.5os S1.sss,aO4
Int and premium on
P pSas Sividends..... s,so4,o10 6,3O4 ,9l9
Com. dividends. 6,S65'aSd 0'oos' : : Q . i
Deficit ......---- 4,of1,ooo 40 $4,000
Surplus.
The net earnings for the June quar-
Ter. considered by months, showed a
total of S7,336,655 for April, S7,731 SAY
for May, and $6,S23,712 for June.
Judging from the fact that prices are
now lower than they were in June
and business has not yet shown any
sppreciable increase, it is reasonable
to assume that the earnings of the
present month will be lower.
Based on the two quarterly reports
FOR 1921, already issued, the Steel
Corporation for the first half of the
dividends of $23, 562, 637, which after
preferred dividend requirements, was
equal to S2.15 share on the com
mon, or at the rate of S4.30 for the
full year. This is 10 cents under the
dividend requirement.
Commenting on the earnings state
ment of the June quarter, Judge Gary
said that the results were not sur
prisinc to any one familiar with gen.
eral conditions.
Shipments have been SMALL" he
added, land prices received on
products delivered have been very low,
compared with the cost of production
Many manufacturing concerns have
been operating at loss. This is
about as censurable as insisting upon
unconscionable profits. 1t cannot be
long continued.
ave have been paying somewhat
higher wage rates than many other
basic lines of industry. We think re-
auctions in these rates should follow,
rather than lead, selling prices, par
ticularly those involving the costs of
living, which in some respects are still
unreasonable. There are being sure
ly, if slowly forced down to q fair
basis by the Withholding of purchases
on the part of the consumer. Up to
the present time we believe wage earn
ers generally have not been paid too
much excepting always certain trades
or vocation, in which rates We're dur
ing the war, on one pretext or an
other, arbitrarily tripled or quad
supled. and are still attempted to be
maintained"
Industry is headed in the right di-
fection, Judge Gary declared, and in
his opinion there awaits at some date
IN the future the biggest business
this country has ever witnessed. "The
'nndisputed figures amount to demon