Several important purchases of coal properties in the states of Illinois and Indiana were made in the years 1909-1910. These gave the Corporation 742 acres of land and 55,624 acres of coal rights. The most important new development recorded at this period, however, was the beginning of work on the construction of another steel plant and city near Duluth, Minn. The site for this plant had been purchased as early as 1907, but the events of the year and the dullness that followed made it seem wise to postpone the project. The more favorable conditions at the beginning of 1910 warranted its being proceeded with, and so the matter was put in hand, and at the end of the year $1,715,517.70 had been spent on the new plant. In accordance with its policy of permitting its workers to share in the better earnings resulting from improved business conditions the Corporation, in 1910, announced another advance in wages, affecting the greater number of its employees who, throughout the year, averaged 218,435. The increase averaged something over 6 per cent. Several factors operated adversely against the Corporation, from a financial standpoint, in 1911. The decline in business noted in the late months of the preceding year continued through and well into 1912, tonnage fell off and prices dropped with it. In May, 1911, the Republic Iron & Steel Co. precipitated matters by announcing a drastic reduction in the price of bars, the most important steel product, and this led to general price cutting, affecting every steel maker. It is worthy of note, however, that the conditions that now prevailed had nothing of panic in them. The business world seemed merely to be hesitating, to be timorous about making new ventures, to question the future. Perhaps the real reason was the world situation ripening for the Great War, for it is noticeable that, although conditions over the end of 1912 and into 1913 were good, this hesitancy was still in evidence, something ominous seemed to hang over the world of business and finance. It is likely that some of the leaders of finance foresaw, even though dimly and uncertainly, the trouble that was brewing. Earnings of the Steel Corporation in 1911 were $104,305,465.87, the four quarters making a comparatively even showing. After the payment of dividends only $4,665,494.78 was left for surplus. Dividend requirements, however, were considerably larger than they had been in previous years. The rate of disbursement on the common issue had been increased to 4 per cent. in 1909, and to 5 per cent. in 1910, at which rate it continued until the latter part of 1914. Production in 1911 fell off to 12,753,370 tons of ingots and 9,476,248 tons of finished steel products, and the gross volume of business declined to $615,148,839.79. The number of employees also grew less, the average number employed in the period being 196,888.