Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-22
FARRELL REPORTS
GAINS IN STEEL
President Dispels Much Gloom
in His Annual Address Be-
fore Stockholders.
Special Dispatch to The Star.


ton at the annual meeting by James A.
Farrell, president He added that there
had been further improvement in prices
of many products since the first quar-
ter.
Stockholders adopted the revised PEN
sion plan providing for the voluntary
retirement of officials at the age of IS
and compulsory retirement at 70.
Mr.. Farrell said there has been a
great deal of talk about prices. "As a
matter of fact. if we can get little
better tonnage on present prices we are
going to have reasonably good year,
he stated.
Mr.. Farrell, himself over SO years old
and one of the first of the senior Of
ficers to be affected by the new plan,
addressed the meeting in favor of the
proposed changes. He said:
II think that the pension plan is the
greatest thing that this corporation has
done with respect to the welfare of its
men in the history of the corporation"
Myron C. Taylor, chairman OF the
meeting of stockholders of United
States Steel Corporation to order.
7,649,O47 Shares Represented.
The total shares represented in per-
son and proxy aggregated 7,649,O47, OF
which 5588,287 were common and D.
060760 preferred.
Mr.. Taylor said that the corporations
employees profit-sharing plan called for
payments from net income after deple-
ton, depreciation, etc. and when this
net income exceeds $100,000,000 an
nually.
He said since 1921. when the plan
was organized. approximately so per
rih ad n
cash.
The balance has been invested in
United States Steel common at pre-
vailing market price.
Mr.. Taylor said that during the 10
years from 1921 until now, distributions
have been made annually except in
1921 and 1922. The average distrib-
uted during the eight years amounted
to $3,112,1e8
Farrell on Business Status.
Discussing business conditions, Mr..
Farrell said:
"The gloom that pervades the atmos-
phere of the country hasn't settled on
the roof of II Broadway
In the 30 or 80 years Of our ex-
perience, we have had periods of de-
preston, and at least two more seri-
Gus than the present one.
in a reasonable sort of way. We
earned 1913 a share on our common
stock and all the time this huge pro-
gram of construction was going on and
has continued.
"Our business in February was not
very much better than in January, and
we came to the conclusion very early
in this first quarter that we were not
going to have good quarter. Our bust
ness in the month of March showed
substantial improvement, particularly
in the selling prices of our largest ton
mage factors, meaning such material as
of products. We can reasonably feel
that. even if am obliged to speak for
myself alone. this slow upward tendency
in prices Is bound TO gather momentum
later in the year.
Certainly in many of our products
that we were receiving lower prices for
in the first quarter of the year there
has been a beneficial improvement.
I'VE hear great deal about condi-
tons abroad"
Work Carefully Distributed.
Mr.. Taylor pointed out to the stock
holders that early in the past year it
appeared that there would be business
recession which would affect employ
ment, and as a result the management
defined a policy of distribution work.
"Out of the normal working force Of
241 900 during the period between
March Is and March 81 we had $4,000
employees on full time and 145.336 on
part time Mr.. Taylor added. THE
number not working was 1890"
"Of our working force at that time
as we classified them there were upward
of SO per cent of our employees at work
either on full or part time"
Since last october the corporation
spent approximately 100000 to aid
those who we're not working and for
whom work could not be obtained and
in contributions for unemployment re-
lief funds on various communities.
A general review for the three years,
1928, 1929 and 1880, was >giyen by Mr..
Taylor. 1t showed net profit on capital
stock of $4l6187, 406. Dividend distribu-
ton was $249, 687,513 and surplus net
profits $166, 499, 1893. Sixty per cent Of
the net profits was distributed in divi-
dends
Earned Surplus, S166, 499,S9s.
The following table was submitted:
Earned surplus in excess of cash divi-
dends, $166, 499 1893; depreciation, de-
pletion and amortization, 1892, 1856, 5S7;
insurance and contingent reserves.
S4,949,874. Other income receipts: Re-
funds of Federal income taxes, exclusive
of s26,10s,458 of interest allowance,
49.0S4.36s: net receipts in liquidation
OF employees house purchase, ETC.,
$6,160,999; miscellaneous receipts, ST.
406,l97. Receipts on capital account:
From 1016,605 shares of common sold
to stockholders, $142,697 ,624; 1887
shares sold under employees Subscrip-
ton, $3,029,873; 536,438 shares issued
for Atlas Portland Cement, Columbia
Steel g. Oil Well Supply, value sci ,570,-
$685. installment paid in by employees
under stock subscription plan, $780,
500; total net resources available, $685.
863,27O.
Cost of fixed property at Atlas. Co
lumbia Steel & Oil Well Supply prop
critics, $50,519,537; additions, extensions,
ETC., $3.50, 915,845; bonds and mort
cages paid off, $373,555,153; premium
paid in retirement of bonds, $40, 800 ,254;
additional outlay for advanced mining
royalties, $4,82l OPT; total, $720, Gil ,816.
Excess of payments from resources,
53,748, 546.
Mr.. Taylor said: "These large trans
actions resulted in very great i'm
provement of the corporations operat-
ing plants, but we have not treSpassed
very greatly upon our working capital
as 1t stood on January /, 1928"
Mr.. Taylor wound up the meeting by
saying: I'VE can face the future with
the fullest confidence. In bringing this
meeting to close the chairman desires
to give expression this single thought.
That the stimulus which adversely has
given to our efforts to reorganize and
improve our industrial structure is very
great We have been passing through
some tribulation, but If We emerge from
the testing period with improved effi-
cheney and more highly productive and
economical bases of operation our tribu-
lation will not have been in vain. For
myself, l entertain no doubt that such
will be the outcome"