Steel's Extra Dividend

Financial opinion, impressed with the severity of the current steel slump, was dubious regarding the showing which the U. S. Steel Corporation would make during the second quarter of 1924. When recently the results of operation for the three months ending June 30, 1924, were announced, however, a more optimistic attitude was prompted. During this period, net earnings of the Steel Corporation were $41,381,039, or $3.44 on each common share, compared with net of $50,075,445 for the first quarter of 1924 and $47,858,181 in the second quarter of 1923.

The surprising stability of U. S. Steel earnings was attributed to the large unfilled orders on the Corporation's books, which have been very largely reduced during the past three months. During the first six months of this year, net earnings have amounted to $8.47 a share on Steel common stock. This remarkable showing justified the directors in declaring, in addition to the regular quarterly dividend of $1.25 a share, the "extra" dividend of 50c inaugurated last quarter. Banker George F. Baker declared that the stock was now practically on a $7 basis annually --and he ought to know.

After the payment of $6,304,919 in dividends to preferred stockholders, and $8,895,293 to common stockholders, there was still $8,575,079 left to add to the company's already enormous surplus.

In this Presidential year, the showing made by such a bellwether corporation as U. S. Steel is not devoid of political interest and significance. Next to the agricultural revival, it is perhaps the most encouraging economic sign for the reelection of Mr. Coolidge.