Evening star., 1949-01-26
u. ). Steel Announces
3-for.1 Stock Split
After Record Profit
by the Assoeioted Press

NEW YORK, Jan. 26.-The man.
agement of United States Steel
Corp, reporting the highest net in
come since 1929 and peacetime rec
ord of shipments, plans to triple the
number of its outstanding shares of
common stock.
News Of the plan sent United
States Steel common up 1897
share to s76.25 on the New York
Stock Exchange today, after a long
delay while buyers and sellers
reached agreement on a price. The
ticker tape reported the transaction
about IS minutes after the opening
gong sounded. The sale involved
$4,000 shares.
The difficulty was caused by a
rush of buy orders and an made
quate number of orders to sell.
Approximately 100000 persons own
the stock of Big Steel" averaging
50 shares each.
166,S23 Shares of Common.
OF this number, here were 1865 1923
holders of common stock on Decem-
Der 81. The balance held preferred
stock.
They learned yesterday that: ID
They will get their usual SIPS divi-
dend and a special ST payment, first
such extra since l947 both payable
March 10 to holders of record Feb
ruary 4, and (2) if they approve
directors proposal at their annual
meeting May ., they will have three
shares in place of each share now
held.
The directors. meeting here, re-
ported United States Steel's net in
come for 1948 was S129.552, ,424,
slightly higher than the s127,098, ,148
earned in 1947, but far below the
profits of 1929 or the World War /
years. The latest total was equal to
$11.99 a common share, compared
with s11.7l in the previous year.
Shipments Set New Mark.
big Steel" shipped an all-time
record 5,467, ,696 net tons of steel
products in the final quarter of
lS4S, while the 2O.597,570 tons
shipped during the year was a
peacetime record exceeded only in
1912 and 1914.
Irving S. Olds, chairman of the
board, told a news conference the
corporation had seen "little-almost
no-letup in demand for STEEL"
demand he believed would continue
for some months to come"
Steelmaking facilities of the COM
pany are operating this week at
1908 per cent of rate capacity, he
said.
The proposed 3-for-1 stock split
would be the first in the company's
history although 40 per cent stock
dividend was paid in 1927 and two
years later holders were given the
right to buy one new share for every
seven they held.
Changes in Bookkeeping.
The split. which Mr.. Olds said
would permit broader ownership of
the stock and provide greater
marketability, would increase the
number Of common shares from the
present 8,703,252 to 26,1O9,756.
Net income for 1948 was reduced
by two changes in the corporations
bookkeeping.
First. a method of accelerated
depreciation on cost" of facilities
was announced yesterday. This re-
suited in charge of s55,3l4,736
during 1913. an amount not pres
emily deductible for Federal income
tax purposes. Mf. Olds said the
new method was approved by the
Securities and Exchange Commits
sion and by accountants, who had
objected to the corporations pre-
vious practice of basing depreciation
charges on replacement costs.
Second, because of rulings that
vacation payments accrue during
the period in which employees quail
ify for vacation, the corporation
charged their costs, for both 1948
and 1949 vacations, to the 1948 in
come, reducing it by approximately
S19, 10000 OF course, in 1949 and
succeeding years, only payments for
the following wears vacations will