Steel & Motors

Two giants of U. S. industry reported the result of nine months' business to their stockholders last week. General Motors Corp. showed net earnings available for dividends and surplus for the third quarter ended Sept. 30, of $64,508,094 and for the full nine months of the year $193,758,302. Swelled by the cessation of Ford production, the revenue is the largest in the corporation's history and very nearly equals its return for the entire twelve months of 1926.

The U. S. Steel Corp., colossus (until 1926) of U. S. business, again saw itself outrivaled in earning power. This corporation announced their net earnings for the third quarter at $41,373,831, which raises their aggregate for the nine months to $132,999,016. The figures register declines of $4,666,629 from the second quarter's return and of nearly $13,000,000 from profits for the comparable nine months in 1926.

For several previous quarters, earnings of General Motors Corp. have exceeded those of U. S. Steel. This time, General Motors' excess over their financial rival is 55%. The current situation presents a quandary to Wall Street.

U. S. Steel reports have long been business barometers. But "as Steel goes, so goes the market," is no longer a Wall Street axiom. The decline in Steel earnings failed to depress the market last midweek when the report flashed over financial tickers. On the contrary, stocks moved higher probably because of the more glamorous General Motors figures. The automotive industry is now the dominating factor in U.S. industry.