THE SAN FBANCISCO CALL. TUESDAY, AVRIL 14, ' 1903.
9
FIRST ANNUAL REPORT
year ending December 3i, i9O2.
ASSETS.
ProDertv Account : ¦ •'• £ Capital Stock of U. S. Steel Corporation : •
„ ' ;-'¦¦"-¦¦'¦; y- Common. $508,302,500.00
rroperues owned and operated by the several companies ?i,453»o35,55 I -37 : Preferred. i\ 510,281,100.00 r»io KQ-a «on nn
Less Surplus and Subsidiary Companies at date of ac- x ' 1 — — * l » u »OiOi5c5,OUU.uu
quircment of their Stocks by the U. S. Capital Stocks of Subsidiary Co's not held by U. S. Steel Corp'n (par vat)
teel , C 2 rP ° r A tiOn ' Ap - ril '« I9 ° l ...-$116,356,111.41 / Common Stocks...... $44,400.00
Charged oft to Depreciation and Extinguish- ' ' • Preferred Stocks.... — . ...- ... 72,800.00
ment Funds 12,011,856.53 Lake Superior Consolidated Iron Mines, Subsidiary Companies ' 98,714.38 0 1^0 14.38
"8-367.96/-94 $1,325,267,583.43 Bonded and Debenture Debt: ||| . ~ i
Deferred Qiarges to Operations: • United States Steel Corporation $303,757,000.00
Expenditures for Improvements, Explorations, Stripping and Development at ' Less Redeemed and held by Trustee of Sinking Fund....; 2,698,000.00 ,
Mines., and for advanced Mining Royalties, chargeable to future operations . _ Balance held by the Public $301,059,000.00
of the properties , • 3,17o,7oy.D 1 , Subsidiary Companies' Bonds $60,978,900.75
Less Redeemed and held by Trustees of Sinking Funds 1,324,000.00
Trustees of Sinking Funds : . ' * .••••¦¦' — — —¦ —
/-itijLT- r-njct'T-j - /(en OA.fZ XA. Balance held by the Public . . '. i *... 59,654,900.75
Cash held by Trustees on account of Bond Sinking Funds 4-59,<^t>. M- Debenture Scrip, Illinois Steel Company 40,42602 . . M „
($4,022,000 par value of Redeemed Bonds held by Trustees not treated as an * - -\ • 360,754,326.77
asset ' . Mortgages and Purchase Money Obligations of Subsidiary Companies:
Investments: Mortgages \ -.. $2,001,132.07
Outside Real Estate and Other Property $1,874,872.39 Purchase Money Obligations ........... 6,689,418.53 9,590,550.60
Insurance Fund Assets 929,615.84 9 fifld 488 23 r .ti-iv i
Z,oU*f, <c +oo.^o Current Liabilities:
L urrent Assets : ., Current Accounts Payable and Pay Rolls $18.675,080. 13
Inventories $104,390,844.74 • Bills and Loans Payable '. 6,202,502.44 t
. n . , , ,On,, iQa« ' Special Deposits due Employees and others • 4,485,546.58
Accounts Receivable 48,944,189.68 Accrued Taxes not yet due . . . :' t^-1,605.42
Kills Receivable 4,153,291.13 , Accrued Interest and Unpresented Coupons 5.398,572.96
Agents* Balances 1,091,318.99 • Preferred Stock Dividend No. 7, payable February 16, 1903 8,929,919.25
Sundry Marketable Stocks and Bonds 6,091,340.16 Common Stock Dividend No. 7, payable March 30, 1903 5,083,02500 49,826,251.78
Cash . 50,163,172.48 n\A. qqa 1K7 to — ; ¦
_5 i 214,834,157.18 Total Capital Cuvren^ Liabilities $1,438,970,643.53
. ' Sinking and Reserve Funds:
Sinking Fund on U. S. Steel Corporation Bonds ...... ..S. %*, 77 3,333 -3?%
\ Sinking Funds on Bonds of Subsidiary Companies ..... 217,344.36
Depreciation and Extinguishment Funds 1,707,610.59
Improvement and Replacement Funds 16,566,190.90
Contingent and Miscellaneous Operating Funds '. .* 3413.783.50
. Insurance Fund : J ... 1,539,485.25 oc o 1-7 -7yi-7 qo
JUrflUri and found correct. - 25,2 17,747. 93
PRICE. WATEBHOCSE * CO.. — - A 4g 1 246 14
Audttorm. Bond Sinking Funds with Accretions „ ' '
nvv Torw. March 12. 1903. \ Represented by Cash, and by redeemed bonds not treated as assets (see contra). %
Undivided Surplus of U. S. Steel Corporation and -Subsidiary Companies :
Capital Surplus provided in organization of U. S. Steel Corporation $25,000,000.00
Surplus accumulated by all companies since organization of U. S. Steel Cor-
poration • ••¦-—¦ •••••••- s *' 874 ' 597 - 05 '77,874,597.05
Total Assets . . $1,546,544,234.65 Total Liabilities .... . . . \ . $1,546,544,234J65
— ' " H *NOTE.— In preliminary* Report submitted to stockholders at the First Annual Meeting, February 17, 1902, the accumulated
' surplus of all subsidiary companies to November 30, 190.1. was shown as $174,344,229.32. This total, however, included the surplus of
the'subsidiary companies at time of the original acquisition of their stocks by United States Steel Corporation in 1901, which surplus
. in this balance sheet is stated in diminution of Property Account.
INCOME ACCOUNT FOR THE YEAR. maintenance, renewals, and extraordinary re- purchase money obligations, bills payable and
The total net earnings of all properties after deducting expenditures for or- PLACEMENTS. bPLCIAL DEPOSITS.
dinary repairs and maintenance (approximately $21.000.000* ), also In- . ,*»,?>,
terest on Bonds and fixed charges of th« subsidiary companies. .,„„•„„ The physical condition of the properties has been fully maintained the year, me The unsecured liabilities of the Subsidiary Companies of the above character were re-
L<-s a AoproSia?Ion«"fOT*th;' follower purges ' *vYz! - $133,308,763.72 cost o f which has bfeen charged to current operations. The amount expended by all prop- duced du ±he fisc&1 Qf 1902 &nd alsQ du frQm
Sif^Fund/onBonds of Eubsfdlar^Co'm panics J624.064.43 ertles ** ri "S «>• for maintenance, renewals and extraordinary replacements aggregat- organlzatlon of the v s steel corporation), to December 31. 1902. by the following respective
Depreciation and Extinguishment Funds (regular pro- ed 129,157,010.73. amounts viz •
vision* for the year) i 4,834,710.28 This total is apportioned as follows:
Extraordinary Replacement Funds (regular provisions v «-"v.V" ¦ Ordinarv • ~ Paid oft Between Paid off Total Reduction
for the year) 9,315,614. <6 .„» ., Exuended on • Maintenance Extraordinary April 1. 1901, and DuringYear April 1. 1901, to
Special Fund for Depreciation and Improvements 10,000,000.00 24.7.4,389.47 * Wttttt "" and Repairs Replacements* Total. Purchase Money Obligations and Bills December 31. 1901. of 1902. December 31. 1902.
Baunc. ot M *«**. for «i. T^ W^374« gffl^-gSS 7 S ™lffitii gffiSSS. "kJ&JKi!
" "interest on U. S. Steel Corporation Bonds for the Tra n n 8 ?ortr«o n e prop4rties*: 366,220.12 355.220.12 $11,047,970.57 $13,652,267.94 "$24,700,333.51
SinkfnrFund*on'u.'s:'steeYcoVpVrktion*BVndVVoVthe ' '' ' RfpimHhfn,.* Vn\i 'n^'i 8 'sii*Soi*?T fSI'll?'io 4i Bol'lll'l7 , The funds for the payment of the above liabilities were provided entirely from the sur-
year 3,040,000.00 18.227,850.00 Mi«^fo^,,«, P PrnnorH« \l 'tia II „¦! i« 89 131 71 P lus net earnings of the organization— no new capital or bonded or other liability has been
* I : : : Miscellaneous Properties. 35 > 5^-66 53,61^05 &9,lAl.ii created in lieu thereof, although practically all of such payments might properly he funded.
Balance $90,306,624.25 rr^f.i * - «<>i ->in oic i •» •" ai'a "Q9 «n t^i^nin"t as the liabilities were those of the Subsidiary Companies prior to or at the time of organiza-
nMA^Am * rr t>-» v~* r nr, t- «s <!t«i Pnrnnratinn Bfnpk , v ,-. Total $.1,230,218.13 $ .,926, • 92.60 $29,157.010. . J t , Qn of v g gted Corporat i on for the acquirement of additional property or for moneys t>or-
T>r-'A?f JUa " tI? !-¦?+ corporation ciocks, viz. 'These expenditures were paid from funds provided from earnings to cover . require- rowed, which were in turn used for purchase of property and construction expenditures.
Common 4 per cent .'.'.'.'.'.'.'.'.'.'. '.I'.'.'.'.'.'.'. '.'.'.'.'. 20 332,690.00 66 052,867.50 ments of the character included herein. As shown by^ the General Balance Sheet, the amount of these liabilities outstanding on
l)6Cfinb6r oil 1 JO— , is &.s ro llows i 0
Tended Profit, cr surpiu. for a. year VOLUME OF BUSINESS ,^^^^^^^^::v^\\\\\:\:::::\:::\\:::\-\:::::/::: liS&ffiS
•The actual expenditures for ordinary repairs and maintenance were $21,230,218.13. It • • . Special Deposits 4.48o.o46.5S
cannot be stated, huwever. that this specific sum was taken out cf the net earnings for the The volume of business done by all companies during the year. Including sales between Total l if *-7 4tT" «»-
year, because In the manufacturing and producing properties the expenses for repairs and the companies, and the gross receipts of transportation and miscellaneous properties, aggre- ' ' '
maintenance enter into and form a part of production cost. And as the net earnings of such . . .. f _ fo1 _,,_ „<» x^an Kin 170 <jq
properties are stated on the basis of gross receipts for product shipped, less the production gaiea me loiai sum 01 ?oov.oiw.io.oa. PROPPRTY APPOI1MT
cost thereof, the income, for the year is charged with outlays for repairs and maintenance r l\V->T CI\ 1 1 tt^V^WUl> I .
S!^ t tS%ri% t S^ P^c?«a PRODUCTION -' ; The expenditures made^ during the year by all the .properties and « ch«r«d to Property
amount of the expenditures in question has been deducted before stating the net earnings ' * % Account equaled less credits for property sold, the total sum of $16,5S6.531.i 7. These out-
as above. tv.» ni-miiir>Hftn nf thf »v»r9l nrnrxrtlps for thA «»«¦. iQn«> ... or r^iinu-c- lays were made for the completion of construction work at manufacturing properties under
T J™ Production of the several properties ior the year 1902 was ao follows. way wnen the v g steel Corporation was organized, also for necessary additions and ex-
Iron Ore Mined: Tons. Tons. tensions authorized since Its organization, for the acquirement of additional ore and coal
PCVCp Al PRHPIT A\IF\ I HQC K^f^CW IMX From Marquette Range 1,487,370 property, the opening and development of new mines and plants, for , additional equipment
ULI>LI\nL riWJll 1 rVliU LUoO nV>LiUUn 1. From Menominee Range ....2.675.754 " and facilities demanded by the growing requirements of the businessx of the transportation
From Gogeblc Range 4 2,064,492 properties, to secure material reduction in cost of manufacture, transportation of raw and
nRnQQ DCPPIPTC From Vermillion Range ....2.057.537 unfinished materials, and distribution of finished products, etc.
VJAWOO rcC^ClrlO. FromMesaba Range ..\ 7.778.026 16,063.179 v
Tire outlays as above are classified by properties as follows:
Gross Sales and Earrings $560,810,479.39 Coke Manufactured 9.521.567 v n ~ n A.A j™
.. ...._.__.. .. Coal Mined, not Including that used In making coke 709,367 Expenoea ny , ...^-.
MANUFACTURING AND OPERATING EXPENSES. BlMt rumac* Product*: United States Steel Corporation, on account of acquirement of stocks of sub- .„.„,.,„.
Pig Iron 7.802,812 sidiary companies $2oS.4.3.31
Manufacturing and Producing Cost and Operating. Expenses $411,408,818,36» Spiegel 128,265 Manufacturing Properties 9..43.12»..S
Ferro-Manganese and Silicon 44,453 7.975,530 Ore Properties 1.971.542.08.
Balance $149,101,661.03 Steel Ingot Production: Coal and Coke Properties 2.043.168.<?l
MlsccUaneous Manufacturing and Operating Gains and v Bessemer Ingots 6,759,210 " Transportation Properties '.. 2.741. i>52.51
Losses rNet) $2,654,189.22 Open Hearth Ingots 2,984,708 9.743.918 Miscellaneous Properties Cr. 171.430.52
¦ ' Total ........................ ••••••• .................... ....... $16,536,531.77
Total Net Manufacturing, Producing and Operating Income $162,230,631.74 v
OTHER INCOME ROLLED AND OTHER FINISHED PRODUCTS FOR SALE. EMPLOYES AND PAY-ROLLS.
Steel Rails .. • 1 9^0 3 786 The average number of employes In the service of all properties during the entire
Proporticr. of Net Profits of properties owned but whose Blooms. Billets.' 'siabs.*'sheet a'nd'Tin'Plate Bars, .'.'.'.i! '.'.'.'.'.'. '.'.'.'.'.'.'.'.'.'.. ".".*.' '.'.'.'.'.'. '782*637 year was . 16S.127
operations (gross revenue, cost of profluct, expenses. Plates 649*541 The aggregate amount paid during the year for salaries anu wages of employes
etc.) are not Include** in this statement $1.972. 316.45 Merchant "s't'eei "skelp * Shanes' Hoop's. Bands and Cotton* Ties! I!! !!!",*.* .*.*.*.*." 1254 560 was * *• $120,513,343
Interest and Dividends on Investments and on Deposits, etc. 3,454.135.50 6,426.451.95 Tubing and Pipe .'. ". '.'. '744*062 The following shows the classification of the number of employes and pay-roll- be-
Tctai ttcomi ci ct «, nor , e « 5?. ds ," 109.330 tween the several departments named:
Total Incom* 8157,657,083.69 Wire and Products of , Wire 1,122.809 ?««!«„. «f *tf,,™w
' : ; Sheets— Black. Galvanized and Tin Plates 783,576 Employes of dumber.
r^CMCDAI CVOCMCCC Finished Structural Work 481 029 Manufacturing Properties 125.328
VJDINCIXAL CAltlNbto. •'¦'. Angle and Splice Bars and Joints ; 139.954 Coal and Coke Properties 16.619
Spikes, Bolts, Nuts and Rivets 42,984 Iron Mining Properties 13.495
Administrative. Sellir.K and General Expenses (not including Axles ; 136.787 V Transportation Properties ,11.16ft
General Expenses of Transportation Companies)...... $13. 202.398. S9 Sundry Iron and Steel Products 29.177 Miscellaneous Properties «... 1.6o7
Taxes 2,391.465.74
Commercial Discounts and Miscellaneous Interest 1,908,027.90 17,501,892.53 Total .8.197,232 . * Total 163. 12.
BalaDce of Incom ' • ii.Mw.ti. g-^v-v.v.v.^:::::::: :::::::::: :::::::::::::::::::::::-:::::.::::::^g NUMBE r of STOCKHOLDERS
INTEREST CHARGES, ETC. Cement . 486.367 The followinK shows the number of stockholders In the United State* Steel Corpora-
i C- .: tlon-ln March. 1903, in comparison with ti.e number at corresponding date In preceding
Interest on Bonds and Mortgages of the Subsidiary Com- _ . nDHPP9 ON HANH year- ; - ; . . i-"-,'
panies $3,879,439.91 UI\UCI\O WM nni^L/. , * • • 19()2 igo3 increase.
Interest on Bills Pa>^able and Purchase Money Obligations • t),. t n n«.». n f ,,»«n.j «^«, nn the hnoki nt tho rln«» nnilil' mmW Kinim-t Preferred, 25.296 31.799 6,503
of Subsidiary Companies and Miscellaneous Interest. .. 2.234,144.43 :V The tonnage of unfilled orders on the books at the close of 1903 equaled 5,347.253 tons cornrnon . • •••• ••• 17.723 26 830 9 l J7
Rentals paid 732.843.10 6.846,427.44 of all kinds of manufactured products. At the corresponding date in preceding years the *" " !_
_ — orders booked equaled 4,497,749 tons.. In many of the classes of heavier products, like rails. Totals ..43.019 58.629 15.610
Set Samlne* ior «i« Tear 9133,308,763.72 plates and structural material, practically the entire capacity of the mills Is sold up until The foregoing does not include the subscriptions for preferred stock by 27,379 era-
•Includcs charges for ordinary maintenance and repairs. nearly the end of the year 1903. plqyes under plan offered them under date of December 31. 1902.
Complete copies of the detailed Annual Report in pamphlet form will be mailed stockholders ' on and ', after April 13th. Copies may also be obtained after
c that date at the office of { the Secretary, 71 Broadway, New York.