Evening star., 1941-03-24
j. ). Steel Resumes
1918 Speed in
Defense Drive
Mills Near Capacity,
Big Firms Annual
Report Diseloses
3, Tie Assoclated Pres.

D. llft ASSOCldl6Q FIeSS-
NEW YORK. March 24-The
giant sl,S55 100000 United States
Steel Corp. is resuming its 1918
arms speed, and is turning out both
peacc-time and defense materials
at close to capacity rates, its annual
report to stockholders indicated to-
day.
The corporation, according to
Government sources, is working
on defense contracts aggregating
around s465 100000, In addition, it
is supplying steels to other concerns
working on intermingled peace-time
and arms contracts Financial OBJ
servers estimate that Big Steels"
backlog of both direct and indirect
untitled business may be in the
vicinity of Sl.000,000,000 or upward.
Irving S. Olds, chairman of the
Board of Directors, outlining the
company'S part in the "all-out'
defense effort, reported these up-to-
the minute developments:
Il. United States Steel is build
ing destroyers and cruisers.
.. 1t is developing additional ar
NOR Plate facilities to meet the re-
quirenentS of the naval and mill
tary expansion program.
3. 1t is producing shell fOrgings,
unloaded shells and bombs of vari-
Gus sizes.
Il. It is sending large quantities
Of steel to Great Britain and Can
ada.
5 II is supplying a steady flow
of steel to manufacturers in differ
ent parts of the country who have
taken contracts with the Army or
the Navy under the defense pro-
gram.
Is Its going steamers are
bringing strategic materials from
distant foreign ports to meet de-
tense needs"
Run at 80 Per Cent.
The COmpanys mills, working the
clock around, currently are turning
out steel at rate approximating SO
per cent of theoretical capacity.
in the nnal 1910 quarter
averaged 272 2O87. against an average
of 254 1893 for the full year The
pay per worker in 1910 was
1924.
The corporation exports of all
types of steel products in 1910 con-
about 20 per cent of the
total steel tonnage sold. Olds said.
About one-half of the exports went
to Great Britain, about one-quarter
to Canada and Latin America and
the remainder to other foreign des-
tinationS.
out of broad experience the cor
poration has learned that periods
Of war bring only transitory profits
and result in long continued, serious
and enduring increases
in cost" Olds remarked. But to-
day" he added. lin its endeavor to
cooperate fully with the Govern
ment in the national defense pro-
gram, the corporation is proud to be
able to say that every call made
upon its facilities has been met
speedily and completely"
Earnings Up Sharply.
Final figures. little changed from
2 ar1ier preliminary estimates,
showed U. S. Steel in 1910 had net
income of Sl02,2l1,282 after taxes
and charges, equal after preferred
dividends to $685. a common share,
compared with SAL 1884, or 1873
a common share. in 1899.
Commenting on earnings, the Big
Steel chairman said: IF the Ma
tions productive mechanism is to
earnings of any basic industry over
the years should be sufficient to pay
a reasonable amount to the owners,
to attract additional capital when
required. and to permit retaining
enough money to provide for tech
nological progress and for future
emergencies.
In regard 10 research, OldS said
much of the activity has dealt with
armor plate, tank armor, bomb
forgings, performance of metals at
high temperatures. new uses of steel
for mobile equipment. etc.
The company is installing new
facilities for the manufacture of
of divers xtrpes, also
welded steel barges.
The corporation entereQ 1941 with
around s134.0O0,00O of unfinished
nlant EXPANSION under Uay-