New-York tribune., 1922-03-22
Steel Report
Shows Drop of
77.8 Per Cent
. l4'ol7,784 4 Appropriated
From Surplus to Meet
, Per Cent Dividend Paw.
ment OH Common Stock
Average Production Low
Balance Sheet Shows Current
Assets of $569.431,33l:
Liabilities, $84,248,555

kenecting the depression in the iron
and steel industry In 1921, the united
states Steel Corporation in it's annual
report, issued to stockholders vester-
DAY, reports decline of 77.s per cent
in volume of business done last wear
by its subsidiary companies. The
gross sales and earnings totaled $780,
74s,7l9, compared with s1,755, SAT- o2b
in 1920, which was the banner wear in
point Of total business transacted.
The net earnings, which were slight
~ IN excess of those indicated in the
quarterly statements, amounted TO
Ss2, ,726,o6s, drop Of sS3,e60,84O, or
SU.b per cent, contrasted with the total
or $l76,6S6898 reported for 1920. Sur
Plus earnings after all charges except
dividends were s36,617,o17. Deductine
the $2b.219,677 disbursed as the Z per
cent dividend on the $36O,2s1 100 pre-
ferred stock, there remained a ba]ance
of $1l 1897 $40.
Ihls surplus fell short of meeting
the $26,415,12b, or s per cent div
idends on the S5Os,3 800 common
stock outstanding by S14,O17,784, which
was appropriated from the surplus ac-
count to provide for the unearned
balance.
Much more favorable than the cor
poratlon's income account was the bal
ance sheet at the end of the wear,
Wn1ch showed current assets of $500
aS1 $3.50, against current liabilities of
soq'2aS'66b, leaving net working CAPT
ltai on December 81 of S485.1S2 ,775.
This represented a net decrease of
Su,617,199 during the year.
Drop in Demand
Elbert II. Gary, chairman of the
board Of directors, in brief comment
on the 1921 operations. reported to
stockholders that the marked decrease
IN the demand for iron and steel prod
ucts which developed in the midsum-
mer OF 1920, continued until the early
tall of 1921, when there was some i'm
provcment. AS the result of orders
carried forward from 1920 operations
were at an average of more than 70
per cent of capacity during the first
quarter.
"Ihe degree of operations dropped d
IN succeeding months" said Judge
Gary, "and reached the low point in
July, when the output was only about
70 per cent. The average production
for the entire year in rolled and other
finished products for sale was Ais per
1919 Va NHpoSieSb VIC iOWCSb IdClO OF
production to capacity in any year
since the organization Of the corpora
tion.
"Concurrently with the decrease in
demand for steel products there were
marked declines in the prices obtained
for nearly all classes of the same.
These price reductions as a rule ex-
ceeded the decreases it was possible to
effect in the cost of production through
the reduction in unit prices of factors
entering into cost of operations and
the exercise of rigid economies.
"a number of elements in the cast
of producing steel show little if any
recession from wartime figures,
notably that Of railfoad transportation.
which on the basis of existing rate
condition averages in the case of the
subsidiary companies upward Of 40
per cent Of the total cost of producing
steel. At the close of the year the
prices prevailing for some products
were below the cost of production
Balance Sheet
The main features Of the December