Studies in securities

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Monograph

Identifikator:: 890184704

URN:: urn:nbn:de:zbw-retromon-6609

Document type:: Monograph

Title:: Festschrift für den 3. Internationalen Petroleumkongreß (Bukarest, September 1907)

Place of publication:: Berlin

Publisher:: Verlag für Fachliteratur G.m.b.H

Year of publication:: 1907

Scope:: 1 Online-Ressource (125 Seiten)

Digitisation:: 2017

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Document type:: Monograph

Structure type:: Contents

Collection:: Economics Books

JAS. H. OLIPHANT & CO. _— Te A policy of intensive rather than extensive improvement pursued in recent years definitely benefits the earning power of the Corporation on a given volume of business. Since the wartime ex- pansion ending 1918, when $302,776,000 plant expenditures of which $103,301,000 were charged to earnings as inflated cost had left capacity at 22,340,000 tons, there has been $518,156,000 added to property account and $414,702,000 to reserves against it with increase in capacity only 840,000 tons. These outlays provided both mills for finished products, adding breadth to the business, and modern facilities for economical operation, replacing hands with machines. Consequently a tendency of prices to fall and wages to rise has been successfully met: Jperations (per cent. capacity) 1926. ..... 1925..... 1024... .] 1923... 1922.... 1921....9 1920... 1939... (D Prices ‘change er ton) " lower AIT 2h’ the Wages Tails) Earnings (per share new) $12.80 9.20 8.40 11.70 a1 2.03 0.73 1.60 7.00 11.90 6.17 7.95 Record peacetime earnings were turned out in 1926 with rate of operations the same as in 1923 and 1920 although prices were less than in 1923 and daily wages more despite abandonment beginning 1924 of the twelve hour day. From the by-products at one time wasted the Corporation by 1925 had developed earnings equal to $3 a share on the new amount of common stock. Budget for re- search work is now being enlarged substantially. Before the net available for dividends, and besides the allow- ance of $120,000,000 yearly for maintenance and repairs, United States Steel sets aside an increasing amount annually to make good any depletion and depreciation of assets. These reserves if re- lated to the gross plant value were 2.3% in 1924, 2.59% in 1925, and 2.8% in 1926 and if figured on the present common stock were $6.85, $7.90 and $9.00 a share respectively. Liberal reserves of course are necessary to care for the discard of facilities when bet- ter are found and for the doubling of dollar cost when a new plant replaces an old one. Whether this burden on earnings may not be lightened is conjectural. A regularly increasing part of the depreciation allowance goes to sinking fund for bond retire- ment. From a peak of $643,099,000 in 1912 funded debt was re- duced to $492,689,000 in 1926, and interest from $33,301,000 in 1913 to $25,515,000, a saving equal to $1.10 on the new common shares. The bonds in sinking fund, $214,204,000 in 1926, continue [781

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