The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1942-03-19

U. S. Steers gross capital expendi-
lures for additions and betterments to
its facilities aggregated about Sill
million in 1871, compared with $72
million in 1910. Unexpected authorize
tons for all purposes at the end of
1941 amounted to $185 million, addi-
tional.
The Chairman warned that short
age Of scrap may constitute limitation
upon U. S. Steel's effort to maintain
maximum production during 1912,
unless ways are found to make avail
able large additional quantities of this
essential material.
Mr.. Odds pointed out that steel pro-
duction "by no means represents the
total contribution of U. s. Steel to the
war effort" Most Of U. s. Steel's pro-
ducts are further processed or fabri--
Gated by other manufacturers whose
facilities are now serving the Govern
ment. In addition, nearly one-third
of the nations output of tar, ammon-
ium Sulphate, benzol and touol, as well
as substantial quantities of tar acids,
are derived as by-products from u. S.
Steel's coking operations. Nitration
toluol is utilized in the production of
explosives and ammonium sulphate will
be used as fertilizer in increasingly
larger quantities as the production of
many essential agricultural commodi-
ties is expanded.
Loss of production resulting from
nyty ctrv l,,,-t x.nr
1941 was estimated by the Chairman as
the equivalent of 100000 tons Of steel,
100000 tons of coal and 10 days of
ship production.
During the 1871 u. S. Steel disposed
OF the largest volume of products and
services in its history and received for
| them the largest sum of money in its
history. 1t paid to its workers not only
the highest hourly wage but also the
| highest average annual wage in it's
history. Dividends paid for 1941 were
in exactly the same amount as for
1940-that is, for the preferred stock
holders the stipulated annual dividend
of 81 share and for the common
stockholders dividends amounting to 81
a share. The common stock dividends
for 1910 and 1871 were, except for a
small payment for the year 1887, the
only payments made to common stock
holders in ten years.
Net income of United States Steel
Corporation and subsidiaries amounted
in 1871 to Sight, O75 compared with
$102 ,211 ,282 in 1910. After payment of
like dividends for both years, there was
left a balance for future needs of
$56,18 800 in 1941, compared with
$42,178,597 in the preceding year.
The dollar volume of sales in 194l-
S1.6 billion, was the highest In U. s.
Steel's history; but rejecting the ef-
feet of unchanged scheduled prices of
principal products in the face of in
creased tax, wage and material costs,
the net income for 1871 was IL per
cent less than for 1929.
Cautioning that the 1941 net income
cannot be regarded as typical earn
ings, Mr.. Olds stated: Income in 1941,
after income taxes and all charges
except interest on funded debt,
amounted to 702 per cent-as compared
with 500 per cent in 1900 the
value Of the net assets, the latter be-
ing the total assets less current liabil-
tiles. The average return for the five
year period 1937-1941, on this basis,
was 4.59 per cent, while for the ten
year period 1932-1941, which included
the deficit years of 1882, 1888, 1884,
and 1888, the average return was
equivalent to 1.85 per cent of the value
of the net assets"
Employment by U. S. Steel averaged
approximately 100000 for the year
1941-a greater number of employees
than in any year of its history and
representing an increase of 81 per
cent since 1898. The total payroll
during the same period increased 113
per cent.
u. S. Steel paid out in the form of
wages and salaries to employees the
equivalent of about $1,647,000 for each
Gay of 1914. Annual payrolls rose to
new high of SOL, 117,O53 compared
with the total of s43S, 621 ,292 in 1910
and with $42O,O72851 in 1929
Although the average number of
hours worked per week in 1941 in
creased only 4 per cent over 1910, and
was still under 40 hours" said Mr..
Odds, average weekly earnings,
amounting to 1871. increased nearly
Is per cent over 1940."
More than $4,000 employees of sub
salaries are receiving intensive train
ing for skilled jobs to meet pressing
wartime requirements and to provide
for personnel requirements as a result
of Americas participation in the war,
the report indicated. u. S. Steel's
employe training program, one of the
largest in all of industry, has contrib
uted materially to the increase in the
output of steel and other products"
The total tax provisions of u. S.
Steel in 1871 amounted to $191 million,
or 1914 per cent more than in 1910.
These taxes for 1871 were equivalent
to $40 for each outstanding share Of
common stock. Concerning taxation,
the Chairman expressed the hope that
"the ability of American industry
fully to serve the nation in this great
emergency be not weakened by restric-
tive tax legislation" "a fundamental
consideration" he said, els that
method of taxation be provided which
will result in maximum revenue
towards meeting the war cost without
curtailing production or undermining
reserves required for the effective OPP
Grafton of industrial facilities. If taxes
were to become excessive relative to
income, they would become levies upon
assets, which would result in curtail-
ment of ability to produce"