New-York tribune., 1902-07-16

Blast furnaces. 100000
Natural 20Oo0 oO0
Cash and oas6 assets as Of June j. las 600
Total .................. 81 400 2a1 900
Mr.. Schwa5 declares that he is familiar with
all the properties mentioned and he believes
that the values stated in the inventory less
than the real values of the properties. Many
Of these properties. he says. ARE Indispensable
for the successful conduct Of the business. and
could not be duplicated in the United States or
elsewhere at any price
ISSUED AND OUTSTANDING CAPITAL
STOCK
or the capitalization of the United States steel
Corporation Mr.. Schwab says in his affidavit:
The issued and outstanding capital stock of the
slmS5S3.2oo PER value. which consists of 5102SO9
the par value If sI06 Zach and 0Ss o2s shares of
common stock Of the par value of 500 each. The
poration amounts to 1903. $1,000. The mortgage or
bonded Indebtedness Of the subsidiary companies
amounts TO POI go.
ar. Schwab says that the aggregate net cash
assets OF the corporation and its subsidiary
panes have increased more than S12,000.GOO
since June J. He says that the net profits of the
corporation and it's subsidiary companies during
the first year Of the corporations existence
amounted to SOS, ,766, ,542. His statement con-
tinues:
m s5 m Sn @ Pa paid e agng b6S tng m sf bon
s25SSSS for its bond sinking funds, sS6 1852 in
per cent dividends upon its preferred stock and
stock and after such expenditures Cand s25 52S2 for
fheTe TemSined all SURPLUS of SIS The Ge
earnings during the first three months OF the sec
Uaq we're yl s 3 or 6ro a e rate t. of $50 % sS coy yea ear
IN my opinion. the net earnings for the second
April ]. 1893 will greatly exceed those of the first
year. and will equal and probably exceed sl4o,
The United States Steel Corporation properties
its Incorporation net profits IN excess Of 10 per
cent upon its entire capital stock after providing
ton etc This is equal TO 10 per cent upon the
dd Gpon Ge so pus ps the
year the properties are earning at the rate of over
u per upon its capital stock, after
deducting per cent cumulative dividend upon the
preferred stock
In expressing his individual faith in the value
Of the corporations properties Mr.. schwab
says:
] am individually the owner and holder of 81 80?
The common stock. and ] have greatly increased
convinced Of the intrinsic and earning value of the
onds Of the s corPoaon sad pnrchas sod
common stock in lieu thereof.
In support Of his statement that the values Of
the corporations properties given in the in
ventory not excessive, Mr.. Schwab goes
into details. He says the Bessemer ore proper
lies yield ores which would cost the companies
S30000000 a year if the ores were purchased.
II the corporation did not own the properties.
and had an opportunity to purchase them. ii
would be obliged TO pay at least 500 600 in
cash for them.
FOUR HUNDRED PRODUCING MILLS
The plants of the corporation include four
hundred producing mills, of which it is as
serted:
RI
VantageoUsly by reason OF proximity 20 the coal
and ore fields and manufacturing centres and it
facilities and their advantageous locations for
any price. They represent the best steel mills in
The world, with every advantage for economical
OF the coal and coke properties he says:
According to present market values of coal and
are not yet July developed show net profit to
Dersfon Of more than 81 600 90 month on AT thf fh
rate Of sl2Ooo0co year These properties
steam coal making total of $3.50 acres, situated
in the best coal regions Of the United States and
within easy access by economical transportation
facilities TO the producing mills.
The transportation facilities Of the corpora
tion declared by Mr.. Schwab to be worth
more than S120000000 to the corporation and
its subsidiary companies, because If il were not
for those facilities the increased cost of trans
portation and manufacture would decrease the
profits of the corporation SlDOOOUUD a
He declares that the blast furnaces could not
be replaced for 5000, 600. There are seventy
FIVE blast furnaces, situated in twenty-eight diff
ferent places, and having annual capacity of
s500o00 tons The natural gas fields are earn
ing 100000 a year at present, Mr.. Schwab
says.
In controyerting a statement in Bernard
Smiths affidavit. that Mr.. Schwab had sworn
in suit between Andrew Carnegie and H. c.
Frick that the entire value of the assets of the
Carnegie Steel Company. Limited, was about
S15.6o0.o00. Mr.. Schwab says:
affidavit, and that what stated in such tiga-
tion that the book value of the of the
Carnegie Steel Company, Limited. SIS 6lOlOs O6
but claimed in such lltiga tion and such was
The actual value Of the properties. Under the
terms of the agreement, to which Mr.. Frick
determine the interests OF the several associates
and the controversy between Mr.. Frick, on the
hand and Mr.. Carnegie and his associates on
the other, 10 whether this nominal book
value should control or the actual value. which
Mr. Frick alleged TO be in excess Of $3.50 coo 900
AS a matter Of fact the litigation resulted in an
uation which estimated the properties :
s52o.coo0oo. and thereupon the Carnegie Company
divided into shares Of the par value OF 81 900 each
and with bond issue OF 100000 Of per cent
bonds, all OF which were issued to purchase said
Shortly before the institution the suit by Mr.
Frick. Mr.. FTick and another party had paid Mr..
tafnegle forfeit or $4,000 in cash upon an
properties upon total valuation OF s320OD00O
When this option expired Mr.. Carnegie declined TO
renew IT, subsequently the securities representing
The Carnegie properties purchased by the
United States Steel Corporation at price placed