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MARINE REVIEW Entered at Cleveland Post Office as Second-class Mail Matter. Published every Thursday at 39-41 Wade Bldg., by the Marine Review Pub. Co. VoL. XX Vf CLEVELAND, O., JULY 3, 1902. Subscription oe a year. Foreign 4.50 a year. Single Copy 10 cents. No. 2 7 monn TWENTY NEW LAKE STEAMERS FOR 1903. Twenty steel steam vessels, capable of carrying 70,550 tons of freight per trip and to cost $4,380,000 are already under order with the American Ship Building Co. (consolidated lake yards), for delivery in 1903. Par- ticulars of these vessels will be found in the table on this page. Possibly one of them, a freighter building at Detroit for the Anchor line of Buf- falo, will be finished before the close of navigation this year. This sum- mary does not, of course, represent all the new work which the American company has in hand. Several vessels ordered last winter are still un- finished. At the Cleveland and Lorain yards are two large freighters for Capt. John Mitchell of Cleveland and one freighter for the Messrs. Haw- good of Cleveland, as well as a large car ferry for the Flint & Pere Mar- quette Ry. Co. yet to go into commission; at Chicago a 5,000-ton freight steamer for E. D. Carter of Erie, which was launched Saturday; at Bay City a 5000-ton freight steamer for E. A. Stewart of Detroit, which will be launched on the 8th inst.; at West Superior a 5000-ton steamer for the Provident Steamship Co., of which A. B. Wolvin is manager, and at Buf- falo a large steel freight barge for the Franklin Transportation Co. of Cleveland, of which D. R. Hanna is manager. Of the list of twenty steamers to come out in 1908, eleven were ordered within the past week. Capt. W. W. Brown of Cleveland added one to his list of new orders, making six instead of five new vessels which he is to have next spring, and Mr. A. B. Wolvin of Duluth, who recently organized the Great Lakes & St. Lawrence Transportation Co. for the development of trade down the St. Lawrence to Quebec, contracted for the ten steamers of Canadian canal size that have been talked of for some time past. These ten vessels are all of a size. They are to navigate the Welland canal and the canals of the St. Lawrence river which puts a limit upon length and beam. They will differ from the ordinary construction of canal steamers in that they will have no 'tween decks but will be built with open holds. In this respect they present a radical departure from a STEEL CORPORATION AFFAIRS. _During the past month or two, or ever since the directors of the United States Steel Corporation sought to convert $200,000,000 of the pre- ferred stock of the corporation into $200,000,000 worth of bonds, and to issue $50,000,000 worth of bonds additional to obtain cash, both stocks of this giant corporation have sagged. On April 1, the day on which the directors adopted this plan, the common stock closed at 42% and the preferred at 9414. Since then both issues have steadily declined, the com- mon stock selling this week at 37% and the preferred at 8834. The litiga- tion, consequent upon the announcement of this conversion plan, has brought out many interesting facts and has caused many pertinent ques- tions to be asked. We must confess that we do not quite see the sense of paying dividends upon the common stock and then issuing bonds to obtain cash. Since the Steel Corporation was formed a year ago it has paid to its common stockholders $20,309,000. That is up to March 31, 1902, it had distributed this sum among its common stockholders. A further distribution of 1 per cent., which amounts to a little over $5,000,000, has now been ordered. Why should the directors of the Steel Corporation distribute this money to the holders of common stock if the corporation is in need of cash? If it had merely retained during the fif- teen months of its existence the money which it has given to the common stockholders it would have now in its treasury one-half the sum which it is seeking to acquire by issuing bonds. We do not believe that the direc- tors have done a wise thing in putting the common stock upon a divi- dend paying basis. In our opinion the common stock is not entitled to a dividend. When the Steel Corporation was organized a generous value, measured even in preferred stock, was placed upon the underlying plants. The preferred stock doubtless amply covered the tangible property and earning power of the corporation. It is well known that Mr. Carnegie offered his interest in the Carnegie company to Mr. Frick one year before the Steel Corporation was formed for $100,000,000. It is understood that Leading Features of Twenty Steel Steamers under Contract with American Ship Building Company for Delivery in 1903. wn : é eee n q Dimensions in Feet. e Be : 3 : : Dimensions Boilers--Dimensions - on d ildi To be built at Type. a q 4 of engines, in tt ane ia. Draft. A i go 5 For Whom Building. . ® ® om @ OO 3 : : z - : ae Manisti M tte & Northe R G33 Car ferry: 3.5.5 oe: 350 = 338 56 1914 2316, 37, 62x36 (2).Six Scotch, 13-9x12...... Natural <a. .3< 175 Sues ; anistique, Marquette orthern Ry. pee es Goren ate ogous 434 414 50 ae a 85, 58x40-...:.. Two Scotch, 13-2x11-6 ...Ellis & Eaves 170 6,200 275,000 H, A. Hawgood, Cleveland. Loorain..:;... Cargo stmr....... 434 414 50 28 290-30) 5840.3. 3a Two Scotch, 13-2x11-6 ...Ellis & Eaves 170 6,200 275,000 W. W. Brown Syndicate, Cleveland. Lorain...:; >; Cargo: stmr,o....< 400 380 50 28 22 8b. DSX40: oa « Two Scotch, 18-2xl1-6 ...Hllis & Haves 170 5,600 260,000 W. W. Brown Syndicate, Cleveland. ~ Lorain 2: 5: os Cargo -stmr...: 400 380 50 28 92.235, 08x40 3... Two Scotch, 13-2xll-6 ... Ellis & Eaves 170 5,600 260,000 W. W. Brown Syndicate, Cleveland. Lorain: =; 7. Cargo stmr.c. -s: 400 380 50 =. 28 22.30, DS KA. fc Two Scotch, 13-2x11-6 ...Ellis & Haves 170 5,600 260,000 W. W. Brown Syndicate, Cleveland. Chicago 3..:3% Cargo stmr.<.. 5: 400 380 50 28 22: 3b; 08x40"... 3. Two Scotch, 13-2x11-6 ... Ellis & Eaves 170 5,600 260,000 W. W. Brown Syndicate, Cleveland. Chicago..2. 3 Sarso 'stn... 5... 390 370 48 28 20, 3314, 55x40 ...Two Scotch, 12-6x11-6 ... Ellis & Eaves 170 5,250 250,006 W. W. Brown Syndicate, Cleveland. West Superior Cargo stmr....... O55 Odd Ae AS 5 40x80 os ee Two Scotch, 13x12 Natural: .23.< 170 *2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. West Superior Cargo stmr....... 255 241 41 18 15; 20, 42x90 i. Two Scotch, 13x12 Natural)... < 170 ©*2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. West Superior Cargo stmr.......255 241 41 18 155 2b, 42x30- 3 Two Scotch, 13x12 Natural 32. 170 =*2,200 150,000 Great Lakes & St. Lawr. River Trans. Co, West SuperiorCargo stmr.......255 241 41 18 15, 25, 42x30 ....Two Scotch, 13x12 .......Natural ..... 170 =*2,200 150,006 Great Lakes & St. Lawr. River Trans. Co. Detroit 232.555 Cargo: str... ...: pe. 241 41 18 155-25, 42x30 22... Two Scotch, 13x@2 .......Natural ~.... 170 =*2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. Detroit +> Cargo -Stnr, .< 5 << 255 = 241 41 18 15; 26; 42x30... .. wo Scotch; taxis .......Natural ...... 170 =*2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. Buffalo ....... Cargo stmr......-255 241 41 18 15, 25, 42x30 ....Two Scotch, 13x12 Natural ..... 170 *2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. Buffalo ee Cargo. stmr, <<... «. 255 241 41 18 15 Op: AD e0 ie Two Scotch, 13x12 Naturals 1... 70 *2,200 150,006 Great Lakes & St. Lawr. River Trans, Co. Chicago ...... Cargo stmr .205. 0s 241 41 18 15; 26, 42x80. 2.0. Two Scotch, 18x12 Natural. 22. 10... 72,200 150,000 Great Lakes & St. Lawr. River Trans. Co. Chicago ...... Cargo stmr....... 255-241 41 18 15) 25, 42x300 5.3. Two Scotch, 18x12 Natural 2:2. 170 = *2,200 150,000 Great Lakes & St. Lawr. River Trans. Co. Detroit (1... Pass. & frt. stm..362 340 45 28 22, 3114, 45, 65x42.Four Scotch, 12%xll%...Howden ..... 210 3,500 350,000 Anchor Line, Buffalo. Detreit 1... Cargo stmr.......872 350 46. 30 19, 27, 40, 68x42..Three Scotch, M/exil's..Howden ..... 210 . 5,000 200,00) 9 Backes Me Buffalo. *On 14 ft. draught; all other capacities based on 18 ft. draught. the ordinary package freighter of the lakes, resembling more nearly the usual type of ocean construction as far as cargo space 1s concerned. They will accordingly be equipped with winches and derrick booms, after the manner of ocean steamers, for the handling of cargo. They are expected to carry 75,000 bushels of grain on 14 ft. draught. Particulars of all the new vessels above referred to will be found in the table. oo" It is quite probable that the Detroit works of the American company will shortly book an order from the Detroit & Cleveland Navigation Co. for two large side-wheel passenger steamers that will be as costly as the Eastern States and Western States, which have just opened up the De- troit-Buffalo route and which are among the finest side-wheelers in the country. Officials of the Detroit & Cleveland company have ordered plans and specifications for the new steamers and it is generally expected they will decide to build in time to get the new vessels for next year. TURRET STEAMERS FOR CANADIAN LAKE TRADE. The turret type of vessels that are to engage in the Canadian grain trade on the lakes, and which have been sent over from England by Wm. Peterson, Ltd., of Newcastle, are not new to readers of the Review. Shortly after the first whaleback was built on the lakes, the first of the turret vessels was built in England. Large numbers of them have since been built, and all for the Newcastle concern. One of them was illustrated in the last issue of the Review, bearing on deck two of the canal boats, that are being shipped to the Phillippines to engage in a lightering business at Manila. The three steamers of this new type that are to engage in the Canadian grain trade are the Turret Cape, Turret Court and Turret Chief. The vessels are practically duplicates--253 ft. long, 44 ft. beam and 19.4 ft. depth. The beam of 44 ft. will make. them a close fit for the Canadian canal locks, but it is expected they will engage mainly in grain trade between Port Arthur and Georgian bay ports. The Inland Lloyd's Regis- ter has given them a rating of Al and valuation of $110,000 each: .- The name turret evidently comes from the steepled extension form of deck. The torpedo boat destroyer Hull was launched this week by the Harlan & Hollingsworth Co., Wilmington, Del. The boat is named in honor' of Commodore Isaac Hull of Constitution fame. She is 245 ft. long, 23 ft. extreme breadth and at 6 ft. 6 in. mean draught displaced 408 tons. She is equipped with twin-screw, four-cylinder, triple-expansion engines and has four Thornycroft water-tube boilers. Total ce ieere te gs 70,550 $4,380,000 he was provoked when Mr. Frick and his associates failed to realize this sum and were forced to abandon their option. Yet one year later Mr. Carnegie received $304,000,000 in 5 per cent. bonds for this self same in- terest. Truly Mr. Carnegie's property had developed during the year but it is not conceivable that it had developed to any such extent as that. © This mortgage which Mr. Carnegie holds we consider to be the best in the world, for it is founded upon ore fields which cannct be duplicated anywhere else, upon coal fields of vast extent and upon a splendid chain of steel making plants. The value of the Lake Superior ore deposits does not alone lie in their richness and abundance but in the fact as well that they are favored with the cheapest rate of transportation ever known and which it is impossible to obtain elsewhere, Therefore, should vast de- posits of ore be discovered elsewhere the furnace-cost of Lake Superior ore is likely to remain the lowest. But we submit that Mr. Carnegie's mortgage and the preferred stock in addition pretty thoroughly cover all that is tangible or prospective in the valuation of the properties of the Steel Corporation. We are quite aware that this great company is pros- perous, amazingly so, but we are not aware that its prosperity 1s to con- tinue indefinitely. On the contrary it is likely to have its bad years the same as any other enterprise and it should be the part of wisdom to pro- vide for them. Distributing dividends upon a non-asset representing stock and at the same time saddling a mortgage upon the property in order to get cash does not impress us as measures of great foresight. The interest on that bond issue must be paid whether or no. This is the one feature of the bond conversion plan that we don't like--the transfer of a preference charge into a fixed one. The difference between interest and dividends is that one is must and the other is may. Interest must be paid but dividends may be skipped. No corporation would think of guaran- teeing dividends; but banks guarantee interest by foreclosure. However, we have no doubt that the Steel Corporation is thoroughly sound and that it will always be able to meet the interest on its bonds should the conversion plan be declared to be legal. We are, on the whole, agreeable to the bond conversion plan as far as the stock is concerned; but this plan of granting mortgages just to get cash when the money can be secured by the retention of dividends impresses us badly. It leaves the directors open to the suspicion, already given voice to in some quarters, that divi- dends were paid upon the common stock to give it tone while the in- siders were unloading. The corporation continues to be immensely pros- perous. The net earnings for the quarter ended June 30 were $37,691,696, as against $26,362,000 for the corresponding quarter of last year.