Evening star., 1938-02-18
i. S. STEEL ASKS
CHANGE IN STOCK
Directors Approve Increase
and Change From S1OO
Par to No Par.
BY the Associated Press.

NEW YORK, Feb 18.-In a move to
make the capital structure of the huge
United States Steel Corp. more flexible
for future new financing directors to-
day asked for stockholders to approve
an increase Of $500, 900 In the number
of authorized common shares and
change its face value from 500 to
no-par.
Under the new set-up if approved
at the annual meeting in April, the
corporation will have authorized out
standing l5.000,O 900 shares of common
and 100000 authorized per cent
cumulative preferred, of which 3,eO2,-
8ll are outstanding. No change was
made in the status of the preferred
In today's action
1t was stated that there are no i'm
mediate plans for new financing.
Stockholders were also requested to
authorize the board to issue bonds,
debentures and other convertible OBJ
liga tions.
The statement. made by spokes-
man for the company, said that in
changing the common stock from
sl00-par value to no-par value the
directors proposed that the stated cap
ital for outstanding common stock will
be S75 a share, thus decreasing the
capital and increasing the capital sur
plus of the corporation by s2l7 ,581, 800
to .s2ss, 1881 .32l42
Explains in Letter.
In a letter to stockholders dated
February 81 Myron c. Taylor. chair
man of the board, explained that the
board Of directors contemplates reduc-
ing the item OF tangible assets appear
ing in the consolidated balance sheet
to a nominal value of ST. by charging
the amount of $3.50, ,368, SO against
the capital surplus, leaving a capital
surplus of s38462 .800.89
The corporations earned surplus will
not be affected by the proposed
changes
The letter points out that during the
five-year period ended December 81
the corporation and its subsidiaries
undertook reha bilitation and new con-
struction to the extent of approxi-
mately s250,o00. 900, about 1925 .O00. 900
OF which was provided from resources
without the sale of any securities.
At the beginning of this year s80.-
100000 OF this amount had not vet
been expended. and to carry out the
program the corporation recently bor-
roWed s50000,000 from banks in New
York, Pittsburgh and Chicago.
Prices Reaffirmed.
Big Steel's" action in reaffirming
prices on shipments on hot and cold
rolled steel products until July / was
seen by the trade today as a stabilizer
influence which might spur the release
Of many orders that have been with
held due to uncertainty.
While the industry expected inde-
pendent producers to fall in line with
the announcement last night of no
price changes by the Carnegie Illinois
Steel Corp, it watched with interest
for the action of Republic, Bethlehem
and others
One of the big independents took
the initiative a week ago and slashed
the price Of cold-rolled sheets 81 a
ton a step which Carnegie Illinois,
largest subsidiary Of United States
Steel promptly matched.
Uncertainty Removed.
Most observers had expected prices
Oh hot-rolled steel would be reaf-
firmed, but there was some doubt as
to the action on the cold-rolled sheets
A portion of the industry thought
the 81 cut had been too drastic, in view
Of the fact that virtually all mills now
are operating at deficit
CHICAGO, Feb. l8 LP,.-Inland
Steel Co. will maintain its present
steel price schedule during the second
quarter J. L. Block, vice president.
announced today. The announcement
followed a similar declaration last
night by the Carnegie-Il Illinois Steel
Corp, principal subsidiary of United
States Steel.
NEW YORK BAR SILVER.