U. S. Steel Earnings

The recent fall on the New York Stock Exchange of the price of "Steel common" to the upper 80's has been taken as a forecast that the earnings of the U. S. Steel Corporation for the second quarter of this year would prove disappointing. That this explanation was incorrect is seen by the fact that, although the statement of the Company showed a big increase in net earnings from April through June, 1923, the price of the stock has not materially rallied. Apparently the stock market looks for poorer business this Fall and sticks to its opinion.

The current statement, even though it chronicles ancient rather than future history, is undoubtedly encouraging. Net earnings totaled $47,858,181, as compared with $34,780,069 for January-March, 1923; $27,286,945 for April-June, 1922; $48,051,540 for July-September, 1920--the record quarter since the War. Earnings for the latest quarter, after all charges and deductions, amount to $4.63 on the common stock outstanding -- almost enough to pay the 5% annual dividend. After the quarterly payment of 1 3/4% on the preferred and 1 1/4% on the common stock, a surplus of $17,205,012 was left, of which $10,000,000 was set aside for additions, betterments, improvements.