The San Francisco Call. Newspaper, April 14, 1903, Page 9

FRANCISCO CALL. TUESDAY APRIL 14, ’ 1903. e ——————————— e ———————————————————————— ———————————————— FINANCIAL. : 1 FINANCIAL. 1 FIRST FINANCIAL. | FINANCIAL. | ANNUAL REPORT FINANCIAL. I mu CIAL UNITED STATES STEEL CORPORATION YEAR ENDING DECEMBER 31, 1902. st ASSETS. " LIABILITIES. Nocorns % Capnal Stock of U. S. Steel Corporauon' . r ) >wned i 1 by tl 1 ies ..$1,453.635,5571.37 gon°“ : $308.3(8>.’,500.oo perties owned and operated by the several companies .. 5.557 referred . 510,281,100.00 Less olus and Subsidiary Companies at date of ac- $1,018,583,600.00 juirement of their Stocks by the U. S. Capital Stocks of Subsidiary Co’s not held by U. S. Steel Corp'n (par val,) Steel Corporation, April 1, 1901 .$116,356,111.41 Coitiani Soclihe. = ( ged off to Depreciation and E Preferred Stocks ....... T Rl & i ik r2.0|l,856.53 Lake Superior Consolidated Iron Mines, Subsxdlary Compames o 215,914.38 4 ~ . 128367.907.94 $1,825,267,688.43 || B, 404 and Debenture Debt : Deferred Charges to Operations : United States Steel Corporation Bonds ............ Z $303,757,000.00 Expenditures for Improvements, Explorations, Stripping and Development at Less Redeemed and held by Trustee of Sinking Fund. 3fRpoaion Mines, and for advanced Mining Royalties, chargeable to future operations Balance held by the Public of the properties P B AR G S M i T SR o 3,‘78;759'67 Subsidiary Companies’ Bonds .. 2 i Less Redeemed and held by Trustees o stees « ndas: ) . A B i cssee’e ,65 ( vy Trustees on account of Bond Sinking Funds ................. S 459,246.14 D:{;‘:f&lzdsdmg;‘ t;‘lelini‘ilsbhsclecl Snvaie 59623’% = 00 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: estments Mortgages . : 2 $2,901,132.07 O Real Estate and Other Property............ TN e $1,874,872.39 Purchase Money Obligation 668941853 9,590,550.60 L ot ARNEES ., il s BNty R B 929,615.84 s Sl € Sk i 2,804,488.23 N Current Liabilities: ent Assets A gl_xlll'rentd:\{‘count;l’a,\;ble and Pay Rolls . X ventories S $104,390,844.74 ills and Loans Payable ................ ,202,, 4 N ie A Special Deposits due Employees and others 4,485, E ANIIHILS Receivabl 48‘9“"&)"’3 Accrued Taxes not yet due ............. I ” s Rec \a}\ e : 4,153,201.13 Accrued Interest and Unpresented Coupons ................ . 5,308,572.96 < 3 ces. . 1,091,318.99 Preferred Stock Dividend \vo 7, payable February 16, 1903 . 8,029,919.25 < & 6,001,340.16 Common Stock Dividend No. 7, payable March 30, 1903 .. 5,083,025.00 49.826.251.78 s 50,103,172.48 214,834,157.18 S Dt e e ? ’ Total Capital and Current Liabilities. s o Tuh v by $1,438,970,643.53 Sinking and Reserve Funds: £ Sinking Fund on U. S. Steel Corporation Bonds . 4 $1,773.333-33 Sinking Funds on Bonds of Subsidiary Companies. 217,344.36 Depreciation and Extinguishment Funds . 1,707,610.50 Improvement and Replacement Funds ... 16,566,190.90 Contingent and Miscellaneous Operating Funds . 3,413,783.50 e Ingurance Fund.o.2o: ooonses,e Vo sren F ot 1,530,485.25 25.217.747.93 Bond Sinking Funds with AcCrefionS i o« o i sy a e oo v oot has buvpnsasstdes b a 4.481,246. 14 N .. - ' 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 orgamuuon of U. S. Steel POTRHGE" ., & L0 0 iUny v vanods o iRe aie nos S SO NIH By e s s 2 s 4SS do s oves 52,874,597.05 «77.874 597 05 s s . Total ABsebs~ .- 0 2oa . e ST5B6544 934 .69 Total Liabilities . . . . . ..+ . $1,546,544,234.65 I\COME ACCOUNT FOR THE YEAR. net earnings of all properties after deducting expenditures for or- a maintenance (approximately $21,000.000%), also in- end fixed charges of the subsidiary companies, $624,064.43 4,834,710.28 $133,308,763.72 fons for the following purposes, viz nds on Bonds of Subsidiary Companies..... and Extinguishment Funds tregular pro- for the year) Replacement Funds ear) for In-prP ia (regular 24,774,380.47 $108,534,374.25 und fon and Tmp Balance of Net Errnings for the year - U. S. Steel Corporation Bonds - sboEten s iabe sy Shagrnbivesss sgsunsive see $15,187,850.00 Sinking Fund on U 8. Steel (‘rvrpora\inn Bonds for the ear Y AE SR GO . 3,040,000.00 ,850.00 ......................... $90,306,524.25 year on U.S. Steel r‘orpnranon Stocks, vi per cent . $35,720,17 4 per cent 56,052,867.50 °0,3...,690 on . $34,253,666.75 expenditures for ordinary repairs and maintenance were $21,230,218.13. It that this specific sum was taken out cf the net earnings for the facturing and producing properties the expenses for repairs and d form a part of production cost. And as the net earnings of such n the basis of gra receipts for product shipped, less the production ». for the year charged with outlays for repairs and maintenance e production during such period was actually shipped. But as the aled practically the year's production, approximately the entire Undivided Profits or Surplus for the year. GENERAL PROFIT AND LOSS ACCOU GROSS RECEIPTS. S b Earnings $560,510,479.39 MANUFACTUR!NG AND OPERATXNG EXPENSES. cturing and Producing Cost and Operating. Expenses . 3411,408,818,36% $149,101,661.03 3,128,970.71 $162,230,631.74 OTHER of Net Profits of properties owned but whose NCOME. operations (gross revenue, cost of proguct, expenses, are not includec in this statement............ etc $1,972,316.45 3,454,135.50 5,426.451.95 ....................... $157,667,083.69 GENERAL EXPENSES. nistrative. Selling and General Expenses (not including General Expenses of Transportation Companies). Adm "Discounts and Miscellaneous Interest.. Commercial 17,601,892.53 «+ $140,155,191.16 INTEREST CHARGES, ETC. Interest on Bonds and Mortngrs of the Subsidiary Com- panies .. Interest_on Balance of Income ......... sa.sfo.«n,sl e Money Oblinflanl Companies and Miscellaneous Interest. 2,234,144.43 PRIG. . ccovsorocnoone seseccsosss BT 732,843.10 6,846,427.44 Net Barnings for the Year........... .$133,308,763.72 *Includes charges for ordinary maintenance and repairs. . *NOTE.—In preliminary- Report submiitted to stockholders at the First Annual Meeting, February 17, 1902, the accumulated surplus of all subsidiary companies to November 30, 1901, 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. MAINTENANCE, RENEWALS, AND EXTRAORDINARY RE- PLACEMENTS. The physical condition of the properties has been fully maintained during the year, the cost of which has been charged to current operations. The amount expended by all prop- erties during the year for maintenance, renewals and extraordinary replacements aggregat- | ed $29,157,010.73. | This total is apportioned as follows: { Ordinary Expended on Maintenance Extraordinary and Repairs. Replacements.* Total. Manufacturing Properties. .$16,099,217.94 36 978,230.48 $23,077,448.42 Coal and Coke Properties . 881,804.77 - 94,1 564 39 976,469.16 Iron Ore Properties.. 355,220.12 .. - 355,220.12 Transportation Propertlel. ilroads .. 3,544,654.27 607,967.88 4.152,622.15 Steamships and Docks 313,801.37 192,317.80 506.119.17 Miscellaneous Properties. . 35,519.66 53,612.05 89,131.71 Total .. .$21,230,218.13 $7,92 2.60 *These expenditures were paid from funds provided from earnings to cover ments of the character included herein. VOLUME OF BUSINESS. The volume of business done by all companies during the year, including sales between the companies, and the gross receipts of transportation and miscellaneous properties, aggre- gated the total sum of" $560,610,479.39. PRODUCTION. The production of the several properties for the year 1902 was as follows: Iron Ore Mined: From Marquette Range From Menominee Range . From Gogebic Range... From Vermillion Range From Mesaba Range... Coke Manufactured.............. Coal Mined, not includln‘ that used 1n making coke 'M rmlcl Products: Iron. sp egel . Ferro-Mau Steel Ingot Production: Bessemer Ingots. .. Open Hearth $29,157,010.73 require- Tons. 2,675, -El 2,064,492 .2,067,637 7,778,026 16,063,179 9,521,567 709,367 7,975,630 6,759,210 ngots. . 984,708 9,743.918 ROLLED AND OTHER FINISHED PRODUCTS FOR SALE. Steel Ralls. Flnl!hed Structural Work........... ie and Splice Bars nnd Joints SD! es, Bolts, Nuts and Rivets . Eundry Iron and Steel Products ..... Total Spelter Copperas Cement .. ORDERS ON The tonnage of unfilled orders on the books at the close of 1902 equaled 5,347,253 tons HAND. 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, plates and structural material, practically the entire capacity of the mills is sold up until nearly the end of the year 1903. PURCHASE MONEY OBLIGATIONS, BILLS PAYABLE A SPECIAL" DEPOSITS. The unsecured liabilities of the Subsidiary Companies of the above character were re- duced during the fiscal year of 1902, and also during the period from April 1, 1901 (date of organization of the U. S. Steel Corporation), to December 31, 1902, by the following respective amounts, viz.: Paid off Between Paid off April 1, 1901, and During Year Total Reduction April 1, 1901, to Purchase Money Obligations and Bllls December 31, 1901. of 1902. December 31, 1902. Payable .... ceren . $8,678,836.01 $12,884.558.85 $21.563.394.86 Spectal Deposits . 2,369,134.56 . 167.809.09 3,136,943.65 Totals .... 311047, $13.652,367.94 ,700.338.51 The funds for the payment of the above liabilities were provided entirely from the sur- plus net earnings of the organization—no new capital or bonded or other liability has been created in lieu thereof, although practically all of such payments might properly he funded. as the liabilitles were those of the Subsidiary Companies prior to or at the time of organiza- tion of U. S. Steel Corporation for the acquirement of additional property or for moneys bor- rowed, which were in turn used for purchase of property and construction expenditur As shown by the General Balance Sheet, the amount of these liabilitles outstanding on December 31, 1902, is as follows: Purchase Money Obligations 36 E!'J ll! 53 BilS Payable. Special Depos! 57 Total ..... PROPERTY ACCOUNT. The expenditures made during the year by all the properties and charged to Property Account equaled, less credits for property sold. the total sum of $16,586,531.77. These out- lays were made for the completion of construction work at manufacturing properties under way when the U. S. Steel Corporation was organized, also for necessary additions and ex- tensions authorized since its organization, for the acquirement of additional ore and coal property, the opening and development of new mines and plants. for additional equipment and facilities demanded by the growing requirements of the business\ of the transportation properties, to secure material reduction in cost of manufacture. transportation of raw and unfinished materials, and distribution of finished products, ete. THe outlays as above are classified by properties as follows: Expended by » United States Steel Corporation, on ar(‘ount of ncqulremen! of stocks of sub- sidiary companies .. Manufacturing Properties. Ore Properties........ Coal and Coke Propertie: Transportation Properties. Miscellaneous Properties. . 42.08 3,168.61 165251 .430.52 «+.$16,586,531.77 Total covvvvennnnnann EMPLOYES AND PAY-ROLLS. The average number of employes in the service of all properties d\lrln‘ the entire year was .. 168,127 The aggregate amount pnid durln. the yenr for salaries and wues ‘ot emnloyes WAS svcoecencracvann . .$120.528,343 The following shows the classification of tho number of employes -na p-y-roll.. be- tween the several departments named: Employes of Manufacturing Properties. Coal and Coke Propertie: Iron Mining Properties.. Transportation Proper(les Miscellaneous Properties N\xmber. .125.328 NUMBER OF STOCKHOLDERS The following shows the number of stockholders in the United States Steel C tion in March, 1903, in comparison with t%e number at corresponding date In preceding T 1902 Preferred ... 25,296 Common . 23 Totals ....... e foregoing does not include the subseriptions for preferred stock by 27,379 em- plqy}.lhunder‘;hn offered them under date of December 31. 1902. i 1903. Increase. 6.5 9.1 Complete copies of the detailed Annual Report in pamphlet form will be mailed stockholders on and after April 13th. that date at the office of the Secretary, 71 Broadway, New York