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82 THE COAL TRADE BULLETIN.
of previous years for dividends, but rather to de­
vote the surplus earnings of the company in excess
of the requirements for bond interest and
other fixed charges to the building up of its
working capital.
On July 20, out of the sinking fund there was
purchased for retirement 271 first mortgage bonds,
which, together with 636 bonds so purchased on
January 20. make a total of 967 first mortgage
bonds now retired.
On April 20. a contract was made with United
States Steel corporation and its subsidiary companies
covering a period of 25 years, during which
time they agree not to open any new mines and to
discontinue the shipment from coking plants of
coal to be used for steam and gas purposes. This
contract is one of great mutual benefit; the steel
corporation being assured of a supply of coal of
such quality and by such delivery as is required
for its varied interests, and, as the cost of mining
depends largely upon the volume and regularity
of operation of the mines, in securing such a
large tonnage, we reduce the cost of our entire
output.
By reason of the fact that the Steel corporation
is this year taking a considerable quantity of its
requirements of Pittsburgh coal from our competitors
under contracts which had been made at the
time our contract was closed, we have not as
yet entered upon the full benefits to be derived
from the large and steady tonnage which this contract
assures.
The prices, terms and conditions of this contract
are satisfactory to your officers and the making
of the contract was authorized by the unanimous
vote of our board of directors. In fact, no action
of imporatnce has been taken except by authority
and unanimous approval of your board of
directors.
Earnings Pittsburgh Coal Co. and all subsidiary
companies (except the Monongahela River Consolidated
Coal & Coke Co.) half year ending June
30, 1905.
Profits incident to the
mining and marketing-
operations of the company
after deduction of
all expenses $1,475,732 62
Less—
Royalty allowance for
depletion $ 276,060 26
Addition to renewal fund 63,338 90
Net earnings $1,136,333 48
339,399 16
Less—
Interest on flrst mortgage
bonds $ 609,100 00
Preferred stock dividend
No. 21 514.914 75
Undivided earnings for
first half of year 1905,
,124,014 74
12,318 71
Comparative statement of tonnage and net earn­
ings Pittsburgh Coal Co. and all subsidiary companies
(except the Monongahela River Consolidat­
ed Coal & Coke Co.) :
EABNINGS.
Net earnings half year ending June
30. 1904 $1,660,327 12
Net earnings half year ending June
30, 1905 1,136,333 46
TONNAGE.
Production in Tons.
First half First half
19114. 1905.
Pittsburgh district 4,916,524 6,075,946
Hocking district 537,724 556,479
Coke S6.174 168,236
Statement of quick assets. Pittsburgh Coal
Co. and all subsidiary companies (except the
Monongahela River Consolidated Coal & Coke
Co.), as at June 30, 1905:
Cash—Current working
balances $1,277,769 S2
Cash in sinking fund for
retirement of first
mortgage bonds 552,725 59
Cash—Current working
Accounts and bills re­
$1,830,495 41
ceivable 7.983.89S 86
Merchandise at cost
(principally coal on
northwestern docks) .. 4.052.44S 70
Less—
Bond interest payable
•Lily 1 $ 609,100 00
Accounts and bills pay­
able 9,998,050 39
Net quick assets .... $3,259,692 58
Respectfully, submitted
FRANCIS L. ROBBINS,
$13,866,842 97
$10,607,150 39
President.