New-York tribune., 1912-03-20
u. S. STEEL'S YEAR
Annual Report Shows Decrease
of S36,749,28S Over 1910.

VI HOO S'NA " ! ~
The report Of the United States Steel
COTporation for the year ended December
81. i9ll. shows net earnings OF all proper
ties. after deductng expenses incident TO
operations, including those Tor ordinary re.
pairs and maintenance, employes special
conpensatlon under the bonus plan, allow
ance for federal excise tax and interest on
the bonds and fixed charges OF subsidiary
companies OF $lC4.35. 100, decrease OF $58.-
7i9 2S3, as compared with me preceding
wear. Earnings after charges and allow
ances for depreciation amounted 10 &4,i65.-
3G7. against SIG 73s Isl in 1910 After the de-
duction Os interest on the corporations
outstanding bonds and dividends there was
a surplus Of 1866, ,i94. decrease OF $,lO6SS
from the surplus reported at the close or
the year before, The corporation had at
the end Of 1911 a total undlylded surplus,
exclusive CT profits earned by subsidiary
.Companies on intercompany sales on prod
ucts in inventories OF $lS5 l5o.
At the time Of the organization OF the
United States Steel Corporation the CON
GERMS capital surplus was S-5,UOW. since
that period net profits have amounted TO
upward OF 100000 while In the same
time the company has paid In DIVIDENDS on
its common and preferred shaTes Sti,oel,
6SS From its surplus II has paid since or
ganzation 500 i94, 43 on capltal expenditure
and special charges In the last year pay,
ments for maintenance, renewals ana
extraordinary replacements amounted 10
81 960. 265. against $40, lSi In 1910, these
expenditures having been charged TO cur
rent operating account ana 10 depreclauon
and replacement funds reserved from earn
ings The amount of charges In the year.
taken from gross earnings for deterlora-
ton arising from wear ana tear OF I'M
provements, exhaustion OF minerals ana
for ohsolesCenCe was S64, ,l34, IO5. The corpo-
ratIon's total book valuation Of the inven-
tories OF manufacturing and operating
materials and supplies and semi-fnlshed
and finished products, including net al,
vances on contract work az the close OF
the last year equalled Sl76.0i71S9. EXpendi-
tIIres made I'm the year by all companies
and chargeable 10 capital account Tor ac-
Ouisition of properties and Tor extensions
and additions 10 the plants, less creults lot
PROPERTY sold. amounted to S,S5,hS
The actual volume of business done ny al
companies forming the United states steer
gross earnings and sales, equalled the sum
S Gf 6a ycar 5efore SSS Salaries and wages
paid I'm 1911 were 1851, 1909. compared win
sl7I In55l39 I'm 1910. The general results on
tsined bv the corporation In the last Twelve
months were remarkable in view OF the
fact that its output OF hhlshed s,ee.
products for sale was only ABOUT aD.t Iarts ot pe'
Tho heaviest decrease in output was IN the
materials used by the railroads. In its eN-
port trade tho corporation showed an IN
crease OF "A per cent as coupaIeu MI[I 1o
IqI0 The general balanceI sheet aS or De
cember 81, 1911. places total assets OF ~
739 2SS, ,j33. including cash IN oahhS OF
about A4.OO0OOO and SB,8?0.+tZ IN accounts ia,s
receivable The total net earnings III IIll
80 Srna 96S lf5 compare with {lN,0j47d In
1910. S8l 49l. AZ in 1862 sol.ST,Ho In 1908 ana
Sl6OgG4673 in 1907. ,..to
The material slackening IN the domesrv fi1iorS.
demand for the products OF the SUBSIDIARY
companies which became apparent IN Ins
fall OF 1910 continued In marKed des
until the early part OF 1911 ana 10 a graz.
or less extent until the closing weeks OF that
Wear, In November, 1911 a substantial buy
ing movement developed, the subsidiary
companies untitled orders on hand riSihS Us lo,, -
n total OF 5.0Si 76l tons at December 81, % Ly,l'
This Improvement in business mas main
tained fairly we'll since the first OF the year
and 10 the date Of writing this report. AZ
FEBRUARY .. 1912 the untitled order tonnase
cqualled $3.50 tons In is,,ias Nay iprices ICES Of
nearly all steel products, ana prices con
tiuued 10 gradually decline. reachlns lh tne
latter part of the year the lowest ngur,es'
in respect OF most OF tnG ne CoIisas.ou''''' ISd.
In continuance OF the plan observed IN
preceding years, beginning win l'yS' c' t,.e
cuployes OF the United states steer Cor
poration and the subsidiary companies "elS
i'm January 1872 offered the privilege OF
Subscribing for preferred or common sto,h.
The subscription price was hNed az SIlV ~
The common stock. The allowances f9sI
gpeCial compensation or bonus 10 %" pau
subscribers who retain their STOCK "eI7
fixed at s. share year Tot INC pIc
ferred and s. 90 share annaIIy ocI.d c%L 10
tho offer and subscription. asid" from me
features Of subscription price ana IN t,s
amount of special compensation OF poHus
=, hc Maid were substantially the same az
those under which stock has been oUerea
tn eunlovcg I'm each OF the previous nine
wears Subscriptions were received ito,ai
20 giS employees for an aggregate OF "V'ol
shares ~ preferred and aoI35 shares OF
Tha propertles Of the several companies
have been maintained In excellent physlcal
condition Tho aggregate sum or chatEes
"a and allowances from gross earnings ioI
,be yaar to cover deterioration arising from
y.eaT and tear OF improvements, exhaustion
~ ,rlne-als and for obsolescence amounteu
IN .Gil3f 706 Included In this total are tne
above expenditures OF SHsoj'2o5 lot OF . uIna.S
renairs and extraordinary rsplacemehts.
chase money obligations of the corporatiiosn. u
and subsidiary companies paid or duIlnS
The wear was Sli .02l, ,259 IS or this total
e. -5I O1O represents bonds retired under the
sirrirg fund provisions of the mortgages
occurring the same During IN" year honds
~ subsidiary companies 10 the amount OF
ga 81 OO9 were issued and sold for account
of outlaws for construction expenditures
and I'm the refundlng OF maturing oonds
sidIarv company bonds In payment TOT Tn
Pittsburgh- Monongahela coal properly pur !,
rbaeAd and there we're assumed So4pVc or
oiItstanding bonds on warehouse property
ntirchased in San Francisco. There was
eynanded in the year by the corporation an1
the suhsidiary companies for addluohai
propartv, extensions and construction ana
Tor strinplng and DEVELOPMENT work az
mines the net sum OF Sie i3c.sbl J.