The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-26
STEEL TRUSTS CIRCULAR.
Stockholders Notified of New Bond
IBIuns

StOcknOIuerS AOtIueu OF new bOhu
Plans.
New York, April % .-Stockholders of
the United States Steel Corporation to-
day received the circular letter of the
corporation setting forth the exact
terms under which it is proposed to
retire 5000. 100000 of per cent. pre-
ferred stock, and issue $3.50. 900 of
per cent. bonds, thereby increasing
the bonded debt from $500, 600, 900 to
$3.50, 900, 900.
The stockholders report, signed by
President Schwab and Chairman Gary,
says in part: t
I'm February, 1901, various subsidi-
airy companies had under contempla-
ton. and in many cases actually had
begun the construction of additions to
their plants, which in some instances
would have duplicated the facilities of
other subsidiary companies. The ag-
gregate of these contemplated expend-
lures was something like $4,000, 200.
Owing largely to advance commitments,
it was impossible to stop all construc~
tion at the time your corporation was
organized and, in order to furnish
work then already under way, cash
payments have been made during the
year to the amount of $l5,000,000.
'Within the next few months will
fall due payments aggregating about
$40, 600, 900 for properties purchased al
most Immediately after your corpora
ton was organized. The finance COM
mittee is unanimous in its support of
the executive committees recommen-
cations and believes that as desired by
the executive committee $25,000000
should be made available for improve
ments.
1.-THE Finance Committee also rec
ommends capitalizing both the $15,000,
900 expended during the year for COM
mitments made prior to your corpora
tons organization and the S10,0O0.00O
yet to be paid for properties as above
stated. These three purposes in the
aggregate call for $50. 100000
After discussion with some of the
principal stockholders, it appeared
practicable to rearrange your corpora
tions capitalization (Which, in round
numbers. now consists of $780,
100000 of bonds, $5O0,000,0 900
of preferred stock and $780,
100000 of common stock by sub
shutting for $500, 900, 900 of the preferred
stock, 500, 900, 900 of sinking fund 60
year per cent. mortgage gold bonds,
and by selling $50,000.000 additional
bonds of such issue for cash. AS the
preferred stock carries per cent. div
idends while the bonds would bear
but per cent. interest, the $50. 900, 000
desired could, in this way, be added
to the corporation resources, and the
aggregate of the annual charges for
interest and dividends instead of being
increased $500, 900, would be decreased
81, 500 900 as compared with the present
sum total of these two requirements.
1.-THE unanimous conclusion of the
Finance and Executive Committees is
that, considering the vast aggregate
value of the physical properties, the
proposed $3.50 ,00O, 900 increase of bonds
from $500, 900 to $3.50, 100000 is wise
and conservative. the preferred stock
issue being simultaneously decreased 40
per cent, or 5000 000, 000
ITO further the success of the plan
there has been formed a syndicate in
GLIDING some directors which will re-
ceive four fifths of the 4 per cent. COM
pensation to be paid under the contract
with Messrs. ]. P. Morgan & Co, men
toned in the notice of stockholders
netting"