The evening world. Newspaper, April 8, 1903, Page 5

ASSETS. Property Account: E COpetles owned and operated by the several companies . ess Surplus of Subsidiary Companies at date of acquirement of their Stocks by U. S. Corporation, April1, 1901. Char; edi off to Depreciation and Extinguishment ‘unds . . . . . . . . Steel $116,356,111.41 12,011 ,856.53 Lodomes Deferred Charges to Operations - and wher “ purpork. ~ action aliens alc ih ¥ + ) “Trustees of Sinking Funds: Cash held by Trustees on account of Bond Sinking Funds 6 ($4,022,000 par value of Redeemed Bonds held by Trustees Investments : Outside Real Estate and Other Property . . Insurance Fund Assets . . ee Current Assets : Inventories . ‘ Accounts Receivable . Bills Receivable . ; Agents’ Balances . Sundry Marketable Stocks Cash . ‘ and Bonds Audited and found correct. PRICE, WATERHOUSE &€O., Auditere. New York, March 12, 1903, Total Assets INCOME ACCOUNT FOR THE YEAR, The total net earnings of all properties after deducting expenditures for ordinary repairs and maintenance (approximately $21,000,000*), also inter- est on Bonds and fixed charges of the subsidiary companies, amounted to $133,308,763.72 Less Appropriations for the following purposes, viz.: Sinking Funds on Bonds of Subsidiary Companies $624,064.43 Depreciation and Extingulshment Fund gular provisions for the year) 4,834,710.28 Extraordinary Replacement Funds (regular provisions for the year) . 9,315,614.76 ++ 10,000,000.00 Srecial Fund for Depreciation and Improvements . 24,774,889.47 Bajance of Net Earnings for the Year........ Deduct: si Interest on U. 8. Steel Corporation Bonds for the year... Sinking Fund on U. 8. Steel oration Bonds for the y: $108,534,374.25 eopecees $15,187,850.00 3,040,000.00 18,227,850.00 > $90,306,524.25 Comman, 4 per cent.... Undivided Profits or Surplus for the year.......... seevecesesseesssceees +++ $34253,656.75 *The actual expenditures for ordinary repairs and maintenance were §$21,230,218.18. It cannot be stated, however, that this specific sum was taken out of the net earnings for the year, because in the manufacturing and producing properties the expenses for repairs and main- tenance enter into and form a part of production cost. And as the net earnings of euch prop: erties are stated on the basis of gross receipts for product shipped, lees the production cost t! of, the income for the year is charged with outlays for repairs and maintenance only to the ex- tent that the production during euch period was actually shipped. But as the shipments in 1902 equalled practically the year’s production, approximately the entire amount of the expendi- question has been deducted 56,052,867.50 tures in ‘before stating the net earnings as above. GENERAL PROFIT AND LOSS ACCOUNT. ‘GRBs RECEIPTS, Gross Sales and Harnings.. MANUFACTURING AND OPERATING HAFENBES Manufacturing and Producing Cost and Operating Expenses.. $560,510,479.29 $411,408,818.86° $149,101,66}.03 (Net) Rentals received.. 474,781.49 Total Net Manufacturing, Producing and Opereting Income. OTHER INCOME, Proportion of Net Profits of properties owned but whose opera- tions ( Tevenue, cost of product, SEpeDM, otc.) are not included in this 5 Waterest ‘and Dividends on Investments and on’ Deposits, etc. — 5,426,451,05 Mandal Madineds.i5504c cane ses tedaariigiadaciagsiaaa eat cdastaneatiaal «+ $157,657,063.60 GENERAL EXPENSES. Administrative, Sell; d General deste repens aspen Reet "OM tase ee re falibes 2,391,465.74 Commercial Discounts and Miscelian 908,087 Balance of Income... 3,128,970.71 $152,230,681.76 vere $1,972,316.45 ~ _3,464,185.50 17501,892.58 9140,156,191.16 f INTEREST CHARGES, ETC, Interest on Bonds and te end Frcs hocty lignans #3,870,40091 Interest on Bills Payable and Compania Bop Minesiianenns Zalegeet : 2,284,144.48 coher eat forse asees cot re sbieboaineirsabhas ee cuait 1 a ll $1,453,635,551.37 Expenditures for Improvements, Explorations, Stripping and Development at Mines, and for Advanced Mining Royalties, chargeable to future operations of the properties . Not treated as an asset.) $1,874,872.39 : ‘920,618.84 $104,300,844.74 48,944, 189.68 ___50,163,172.48 asia iy a SRST BENUAL REPORT NITED STATES STEEL CORPORAT YEAR ENDING DECEMBER 31, 1902: LIABILITIES. Capital Stock of U. S. So! COnppIeHOn Common... Preferred . ° + _810,281,100.00 _$1,018,583,600.00 Capital Stocks of Subsidiary Cos '$ not ‘eld by v. s. Stee Corp ( seit tan! ): Common Stocks ' Preferred Stocks. Lake Superior Consolidated Iron Mines, ‘Subsidiary Companies $1,325,267,583.43 Bonded and Debenture Debt: 3,178,759.67 459,246.14 Subsidiary Companies’ Bonds Sinking Funds . ‘. 2,804,488.23 Mortgages Purchase Money Obligations i Current Liabilities : 4,153,291.13 1,081 ,318.99 6,091 ,340.16 Bills and Loans Payable 214,834,157.18 Accrued Taxes not yet due D Sinking and Reserve Funds : Insurance Fund Corporation A $1,546,544,234,65 Balance held by ‘the Public 5 ‘ 5 : Debenture Scrip, Illinois Steel) Company A e Mortgages and Purchase Money ban oes 2h Subsidiary Companies : Current Accounts Payable and Pay Rolls. Special Deposits due Employees and others Accrued Interest and Unpresented Coupons 5 Preferred Stock Dividend No. 7, payable February 16, 1903 Common Stock Dividend No. 7. payable March 30,1903. Total Capital and Current Liabilities . Sinking Fund on U, S. Steel Corporation Bonds. 6 Sinking Funds on Bonds of Subsidiary Companies : Depreciation and Extinguishment Funds. 9. Sy a Improvement and Replacement Funds. ; j Contingent and Miscellaneous Gperating Funds 5 215,914.38 United States Steel Corporation Bonds . 3 5 Less Redeemed and held by Trustee of Sinking Fund | A . Balance held by the Public 6 ; ” $60,978,800.75 Less Redeemed and held by Trustees of : ft) 59,654,900.75 40,426.02 . $2,901, 132.07 6,688,418.53 . . $18,675,080.13 . . 6,202,502.44 . G 4,485,546.58 . . 1,051,605.42 5,398,572.96 8,029,919. ah 49,826,251.78 eae $1,438,970,643 . $1,773,333.33 js 217,344.36 > 1,707,610.59 ‘ 16,568,190.90 . 3,413,783.50 . ___1,530,485.25 Bond Sinking Funds with Aceretions . <Picel ee 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. Surplus accumulated by all companies since organization Steel Corporation . U. S. Stee! $25,000,000,00 Total Liabilities . 9... 0... *NOTE-—In preliminary apart) submitted to stockholders at the First Ann of all subsidiary companies to ovember 30, ual mest 901, was shown as CUTE Pilbara total, however, subsidiary ania Ga at time of the original acquisition of their stocks by United States St eel pede in 1901, sheet is stated RENEWALS _ AND REPLACEMENTS. The physical condition of the prop::ties has been fully maintained during the year, the cost of which has been charged to current operations. The amount expended by all properties eis deine year for maintenance, renewals and extraordinary replacements aggregated $29,- ‘This total is apportioned as follows: MAINTENANCE EXTRAORDINARY Ord'na: Malntenarien sieogedty a4 $81,804.77 $55,220.12 Extraordinary. | Expended on Manufacturing Properties Coal and Coke Properti Iron Ore Properties. Total. $23,077,448.42 976,469.16 855,220.12 3.544,654,27 and Docks. 312,801.37 Miscellaneous Properties.... 85,519.66 89,131.71 Total. Dees geecvenesccereesecocsorores $21,230,218.13 $7,926,792.60 $29,157.010.78 || *These expenditures were paid from funds provided from earnings to cover requiremen‘s 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, aggregated the total sum of $560,510,479.29. PRODUCTION. ‘The production of the several properties for the year 1902 was as follows: Iron Ore Mined: 607,967.88 192,317.80 53,612.05 $162,622.15, Steamshi, 506,119.17 From Vermillion From Mesaba Range Coke Manufactured ..... | Coal Mined, not including that used in ‘making coke. . HON | Blast Furnac: 16,063,179 9,521,567 709,867 7,802,812 128,265 7,976,530 + 6,759,210 2,984,708 PRODUCTS 9,743,918 ROLLED AND OTHER FINISHED FOR SALE, 1 Dab ise 782,637 ORDERS ON HAND, ‘The tonnage of unfilled orders on the books at the close of'1902 equalled 5,347,253 tons of all ksinds of manufactured products, At the corresponding date in preceding year the orders booked equalled 4,407,749 tons. In many of the classes of heavier products, like rails, plates and struc- a |, practically che entire capacity of the mills is sold up until nearly the end of the diminution of Property Account. PURCHASE MONEY OBLIGATIONS, BILLS PAYAB AND SPECIAL DEPOSITS. The unsecured bese} of the greccsegi Gh during the fiscal year of 1908, and eleo during th of U. 8. Steel Corporation), to December 31, 1902, “the following respect!" Purchase Money Obitgutions ané Billa Payable. oe sere a56 01 nts | Special Deposits .. 169,134.56 167,809.09 | | Totat . $11,047,970.57 --$18,652,367.94 phic. i i The funde tor. the payment of the above lia bilities were provided entirely from net earningg of the organization—no new capital or bonded or other lability has been | leu thereof, ye hithough practically all of such payments might properly be funded, as Pci were those of the Subsidiary Companies prior to or at the time of organization of Corporation for the acquirement of additional property or for moneys borrowed, ce turn used for purchase of property and construction expenditures. As shown by the General Balance Sheet, the amount of these } December 31, 1902, is as follows: | Purchase Money Obligation: Bills Payable . Special Deposit! ISAT) SA CGS TESY CDA UT TA YIN “ ____Jaaae PROPERTY ACCOUNT. ‘The expenditures made during the year by all the Khe ee to count equalled, less credits for prop-rty sold, the total sum of dershcs o made for the completion of construction work at manufacturing properties under way U. 8. Steel Corporation was organized, also for necessary additions and Rican | since its organization, for the inporalpera eRe of additional ore and coal property, the development of new mines and plants, for additional equipment and facilities ‘demanded pe, growing requirements of the business of the transportation properties, to secure wattlal Olen ; jtlon in cost of manufacture, transportation of raw and unfinished materiate, and Gistribation. i | ot finished products, etc. ‘The outlays as above are classified by properties as follows: Expended by United States Steel Corporation, on account of acquirement of stocks ot beets ary companies . Manktectiring Properties Ore Properties Coal and Coke Proper Transportation Properties Miscellaneous Properties ... EMPLOYEES AND PAY-ROLLS. in the service of all properties during the entire The Saene ‘wages of employees ‘was, .$120,51 following shows the classification of the number cin} employees and pay-rolls the several departments named: Employees of NUMBER OF STOCKHOLDERS. ‘The following shows the number of stockholders in the United States Gteel Co March, 1908, in comparison with the number at oberenpooding date in prvending | norawe 31,799 Preferred 28.086 hse eA a7 Common a8 128 » nate 43,019 forego!: does not include ‘the subscriptions for RE eed, nator ie ‘offered thera under date of December 31, 1902. in pampht form will be mailed stockholders on and after April 13th. Copies may also be oneined e Secretary, 71 Broadway, New York.