The chart shown in Fig. 224 is designed to answer the first question: "Has the earning power of the company been maintained?" In order to bring out more clearly the very important relation between the surplus for dividends and the dividends paid, curves Nos. 3 and 4 are redrawn on a considerably enlarged scale as seen in Fig. 225. Curves No. 3 and No. 5 are therefore identical, as are also curves No. 4 and No. 6.

Fig. 224 and Fig. 225 show that the Steel Corporation, like a large number of railways and industrial companies, reached the zenith

GRAPHIC METHODS

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DOLLARS I, OOO, OOO, OOO 900, OOO, OOO 800, OOO, OOO TOO, OOO, OOO 600, OOO, OOO 500, OOO, OOO 400, OOO, OOO 300, OOO, OOO 200, OOO, OOO lOO, OOO, OOO

'02 '03 '04 '05 '06 '07 '08 '09 'lO 'll '12

Fig. 224. The Earning Power of the United States Steel Corporation

Curve 1. Gross earnings

Curve 2. Operating expenses '

Curve 3. Surplus earned available for dividends

Curve 4. Preferred and common dividends paid

This chart and the following charts relating to the United States Steel Corporation arc submitted as a suggestion to show how the annual report of a corporation could easily give comparisons over several years. The space required for the charts is insignificant, yet the stockholders would receive the vital facts in such form as to permit a full understanding of the condition of their company as compared with previous years