New-York tribune., 1921-03-23
Steel Closed
0Stronger
Despite Slump
CurrentAssets$ 7O2,37O, 600
Compared With $672.-
205.OOO at End of 1919:
Liabilities We're Less
Plants N ear Capacity
Total Funded Debt Reduced:
Earnings $lO0, ,694, 900
Net; $40, 6,6OO,364 i'm ,I9

~
The United States Steel Cornorat;on
not only earned $1o9. $4,000 net avail
aaie for dividends in 1920 as compared
with $76.6o0,S64 in 1919, but was able
also to continue its policy of accumu-
isting reserves, reinvesting surplus in
Its property and reducing liabilities, al
most uninterrupted by the great change
which took place in the steel industry
in 1920.
FOR the entire year the output of the
steei plants, measured by the tonnage
OF nnlshed products for sale, averaged
800 per cent of total rated capacity.
no cnange was made during the year IN
steel products. During the year s102.-
soo,ooo was spent for capital purposes.
and of this $27 100000 was charged To
1920 income account.
Total current assets at the end of
1870 were S7o2 100000, compared with
Sog2,29o,0 900 at the end of 1912. The
most important changes in current as
sets were an expansion in accounts re-
celvable from SSS S,193,0 900 in 1918 to
sloS,f25,oo0 in 1920, and decrease in
cash on hand from S166, 1877 900 in 1919
to S123,661,0oo in 1920. There was a
decrease also in marketable securities.
including Liberty bonds and United
States Treasury certificates, from $3.50
| 100000 to S150,351 900, and in amounts
due from the United States railroad
administration from 4,755, 900 to ST.
962 900.
There was an expansion in inven
tories from S226, ,797 900 to s258, 1863 900,
and in bills receivable from $4,613 900
to $40 0,6Ss, 900.
Current Liabilities Decrease
Current liabilities at the end of 1919
totaled Sl57,071 900, and at the end of
1920 we're slightly less, $156, ,745 900.
The principal changes were a decrease
IN, IN accrued a taxes from s7o,574,ooo to
| S63,o64, 900, and an increase in current
accounts payable from sci ,487 900 to
ST3,5d2 .000,, and the elimination of
current liability of S4,680,000 install
ments received on employees Liberty
bond subscriptions carried on the 1919
balance sheet.
There was reduction in the total
funded debt outstanding of about S14,-
100000, bringing the total figure to
1904 4,o2S,Oo0 in 1920. Altogether this
Is a remarkable balance sheet state
ment for the end of the year in which
the last three months were generally
supposed to have been months of Sc
we're strain on the American steel in
| dustry.
1t Is worth while once again to com
pare the current balance sheet state
ment with that made at the end of the
first nine months of operation by the
Steel Corporation in 1901, and such
comparison is particularly significant
this year because it shows on the one
hand that the financial transactions Of
1870 N N,
servative course pursued in anticipa-
tlon of period of depression in. the
steel trade, and, on the other hand, it
tends to emphasize the fact that even
| in a year of readjustment from war
conditions the Steel Corporation was
able to pursue the even tenor of it's
way.
In 1901 the property of the Steel
| Corporation was valued at ST. ,437, ,494,-
O0G Against this there was outstand-
ing $1,018, ,3S6,000 par value of stock
and $362, $4,000 face value of funded
| debt
In 1920 the property was valued at
81 .995, 100 900, and from this there was
subtracted $3S8,342,000 for depletion
and depreciation, as representing act
ual balances in various funds and
money invested in redeemed bonds and
bonds retired through sinking funds,
iiahiiiS tiie HGt property account
$685. ,75s, 900, or an increase of less
than S200,000000 in the nineteen years.
Against this property investment there
was outstanding 1858, 900 par value
of stock and 1854, 4,828,000 face value of
bonds. The decrease in stock comes
within about $40,0oO,000 of offsetting
the increase in funded debt but in
1901. besides the funded debt. there was
S19 ,068,000 purchase money obliga-
tions outstanding of subsidiaries, and
this had been reduced to $365,000 in
1920.
Increase in Securities Only $21, 100000
In other words, the net increase in
outstanding securities has been in the
eighborhood of S21 900 900.
In the mean time reserve funds had
been increased from $2l,236,0OO in
1901 to $154, 900 at the end of 1920.
Appropriated surplus invested in addi-
tions and construction has been in
creased from $2l, ,236, 900 to $40, 1893 900
and surplus had been built up from
S174,3440 900 to $52S, ,455 600.
Furthermore the margin between
current assets and current liabilities,
which in 1901 was approximately
$156 600 900, has been increased in
1920 to -$550,0o0,00o, and of this in
creased net working capital S16S,000,-
900 approximately is an increase in
cash.
The average number of employees
of the Steel Corporation in 1920 was
267,345, an increase as compared with
1919 of 6,04 per cent. Total pay
rolls amounted to S5s1 ,557 900, an in
crease as compared with the previous
year of 21.27 per cent. The average
daily wage was 81 in 1920, as against
$617 in 1919.
In January, 1s21y with wages past
the peak, employees made the largest
stock subscription in the history of
the. company. Up to March II, 1921,
S25,5s2, 500 par value of stock at 81.
This compares with 63,278 subscrip-
tions in 1919 for total of $16, 6,12o,000
par value.
r 0sr ~