The times. [volume] (Richmond, Va.) 1890-1903, 1902-04-26
Trusts
Great PLANS
Preferred Stock Retired in Order
to Greatly Increase its
Working Capital.
NV Associated Press.)

E NEW YORK, April 25.-Stockholders of
the United States Steel Corporation have
received the circular letter of the cor
poration. setting forth the exact terms
under which it is proposed to retire 500
COO,OO of Z per cent. preferred stock and
issue $25n. goo of per cent bonds,
thereby increasing the bonded debt from
$500. COO to $3.50, 100000.
Accompanying this circular was a re-
port Of the Finance Committee, which
sets forth in detail various reasons why
the refunding plan should be approved
together with series Of resolutions.
reciting how the plan is to be carried out
The stockholders report signed by. Pres
ident Schawb and Chairman Gary. says
in part:
'.In February, 1901, various subsidiary
companies had under contemplation, ana
L in many cases actually had begun the
construction of additions to8their2 plants.
which in some instances would have dup
Heated the facilities OF other subsidiary
5conpnaies The aggregate OF these con-
+tempIated expenditures was something
like $50, 600 900. Owing largely TO the ad-3 sad
vance df the committments,it was I'M
possible to stop all construction at the
time your corporation was organized. ana
in order to finish those already under
,vav. cash payments have been made to
tho amount of SIS. .0Oo, 600. Within the
next few months will fall the payments
aggregating about $4,000, eco for proper
ties purchased almost Immediately after
your corporation was organized ne ne
Finance Committee is unanimous In It's
|. support of the Executive Committees rec
ommend ations and believes that. as de-
sired by the Executive Committee, szo.-s
0O0, 600 should be made e4aVsllaDie 1or5s i1iA
provennents.
Z ..rhe Finance Committee also recon-
mends capitalizing both the SIS. .d000oo ex-
spended during the year for commitments
made prior to your corporations organi-
zation and the $40, 600, 900 yet to be paid
for properties as above stated. These
three purposes in the aggregate call ZOE
$50 900, 900. The problem confronting the
Finance Committee has been to make
provision for this $50, ,o00, 900, without is
suing preferred stock.
..After discussion with some OF the pr1n--s
cipal stockholders it appeared pcac.lcabie
to rearrange your corporations capltaI-s
zation (Which in round numbers now coti-s
sists Of $500. 600. 600 Of bonds. 500, ,cooo OF
preferred stock and $500, 600, GOO OF common
stock) by substituting for 5000, 900. .00O of;
tho preferred stock 00,0O0 600 OF sinking
furd, sixty year five per cent mortsage
gold bonds, and by selling s500eO,eoy ad-ss5
d1tional bonds of such issue for ca sn-s$sl
! s..As the preferred stock carries per
cent. dividend. while the bonds Would
i bear but per cent interest. the ss1 wv s',s
COG desired could in this way be added TO
the corporal tor resources, and the aggre-s
gate OF the annual charges for Interest
and dividends instead of being increased
s. 800. 900 would be decreased 8, 500 000s as
compared with the present sum total of.
these two require ements.
! The report says the plan is unani-s
smously approved by the Finance and
Executive Committees:
t8Bsss ssTO further the success OF the sp!an,.'