Evening star., 1902-04-25
STEEL TRUSTS PLANS
To Retire Preferred Stock and
Issue Bonds.
WILL RAISE S5O,OOO,OOO
MONEY TO BE EXPENDED ON M
PRovEMENTs.
Saving of 2 Per Cent on $500, 600, 900
is Effected by the
Scheme.
WILL RAISE S5O,OOO,O00

NEW YORK, April 25.-Stockholders of
| the United States Steel Corporation received
| TO-DAY the circular letter of the corporation
setting forth the exact terms under which
| it is proposed to retire 5000. 100000 Of 4 per
| cent preferred stock, and issue $50 90
| of per cent bonds, thereby increasing tho
| bonded debt from $500 900 900 to $3.50 ooo COO
Accompanying this circular was report
| OF the finance committee which sets forth
| in detail various reasons why the refunding
plan should be approved. together with a
| series of resolutions reciting how the plan
| is to be carried out
The stockholders report, signed by Pres.-
dent Schwab and Chairman Gary, says in
part:
I'm February, 1901, various subsidiary
| companies had under contemplation, and IN
many cases actually had begun, the corr
| struction of additions to their plants, which
| in some instances would have duplicated tho
| facilities of other subsidiary companies The
aggregate of these contemplated eNpendi-
| lures was something like $50 600 600
AS stated in the preliminary report, much
| that at the time of organization IL was
| hoped might be accomplished in the way Of
avoiding wasteful expenditures for unnec-
essary enlargement of plants has been ac-
complished by cooperation among the sew
eral companies enabling one to utilize the
facilities of the other. However, owing
largely to advance commitments, it was
impossible to stop all construction at the
time your corporation was organized; and,
in order to finish work then already under
way, cash payments have been made dur
ing the year to the amount of $l5.0e0,o0p.
Unable to Gauge Expenditures.
'It was not possible then to determine
how much of this contemplated expenditure
of about $50 900 600 would have to be made.
nor in advance OF sufficient experience
would It have been wise to capitalize any
part Of the s15,000,0o0 that has been ac-
tually expended.
within the next few months Will fall
due payments. aggregating about Sloopn,-
000 for properties purchased almost lmme-
diately after your corporation was organ
tied. In the preliminary report to stock
holders these payments were described IS
purchase money obligations The finance
committee is unanimous in its support Of
the executive committees recommenda-
tions, and believes that. as desired by the
executive committee, S25. 100000 should be
made available for improvements.
THE finance committee also recommends
capitalizing both the S15000,o00 expended
during the year for commitments made
prior to your corporations organization and
the SO 900 600 yet to be paid for properties
as above stated. These three purposes in
the aggregate call for $50 600 GOO
THE problem confronting the finance
committee has been to make provision for
this SJ0000,00o without issuing preferred
stock which stock cannot be sold at less
than par. and which. If sold at par, would
be entitled to dividends at the rate Of per
cent, and would increase by s3,5in.o"n the
present annual dividend requirements of
the corporation.