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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (April 13, 1903)
TIII5 OMAITA DAITjY BEKt MONDAY, APIlIli 134 1003. FHA5CIAI.. riA.-riAU . ttS A CI AL. rnAMtiAt. FIRST ANNUAL REPORT United States Steel Corporation YEAR ENDING DECEMBER 31, 1902. INCOME ACCOUNT FOR THE YE All. The total net earning! of all propertied after deducting expendi ture! for ordinary repalra and maintenance, (approximately 121,000.000), also interest on Bond and fixed charge of the subsidiary companies, amounted to f 183,30,tKl.t Less Appropriations for the following purposes, Tit: Sinking Fundi on Bonds of Subsidiary Companies t (24.064.4S Depreciation and Extinguishment Funds (regu lar provisions for the rear) 4,834,710,21 Extraordinary Replacement Funds (regular pro visions for the year) 9,315.614.76 Special Fund for Depreciation and Improvements 10,000,000.00 24,774.389.4? nnlance of Ket Eavrnlass for the year f 10H,BS4,8T4.H5 Deduct: Interest on V. 8. Bteel Corporation Bonds (or the year $15,187,850.00 Sinking Fund on V. 8. Steel Corporation Bonds for the year 8,040.000.00 18,227,850.00 I1.la.re WO,30yiS4.8 Dividends for the year on U. 8. Steel Corporation Stocks, vis: Preferred, 7 per cent 835,720,177.50 Common, 4 per cent 20,332,690.00 B,051,8$7.B0 I -divided Profits or gnrplas (or the year 934,253,686.75 The actual expenditures for ordinary repairs and maintenance were 121,230,111.11. It cannot be stated, however, that this specific sum was taken out of the net earning for the year, because In the manufacturing and producing properties the expenses for repairs and maintenance enter Into and form part of production cost. And as the net earnings of such properties are stated on the basis of gross receipts for product shipped, less the production cost thereof, the income for the year Is charged with outlays for repairs and malntensnce only to the extent that the production during such period was actually shipped. But ss the shipments In 1902 equalled practically the year's production, approximately the entire amount of the expenditures In question baa been deducted before stating the net earnings as above. GENERAL PROFIT AND LOSS ACCOUNT. GROSS RECEIPTS. Gross Sales and Earning fOOOl 10,479.89 MANUFACTURING AND OPERATING EXPENSES. Manufacturing and Producing Cost and Operating Expenses 1411,40818.36 Balance I $149,101,661.03 Miscellaneous Manufacturing and Operating gains and , Losses (Net) $2,654,189.22 Rentals received 474,781.49 8,118.970.71 Total Net Manufacturing, Producing and Operating Income $151,230,631.74 OTHER INCOME. Proportion of Net Profits of properties owned but whose operations (gross revenue, cost of prod uct, expenses, etc.) are not included In this statement $1,972,116.45 Interest and Dividends on Investments and on Depos its, et 1,454,135.60 6,426,461.96 i Total Income eU 57,057,03.00 GENERAL EXPENSES, ' Administrative, Selling and General Expenses (not In cluding General Expenses of Transportation Companies) $13,202,398.89 Taxes 2.391.465.74 Commercial Discounts and Miscellaneous Interest 1,908,027.90 17,601.892.51 Balance of Income $140,166,191.14 INTEREST CHARGES, ETC. Interest on Bonds and Mortgages of the Subsidiary Companies $ 1,879,439.91 Interest on Bills Payable and Purchase Money Obli gations of Subsidiary Go's, and Miscellaneous In terest 2,234,144.41 Rentals paid 732,848.10 6.844.417.44 Wet Karal-gs for the Tear 183,308, Tea. 73 Includes charges for ordinary maintenance and repalra. PURCHASE MONEY OBLIGATIONS, RILLS PAYABLE AND SPECIAL DEPOSITS. The unsecured liabilities of the subsidiary companies of the above character were reduced during the fiscal year of 1902 and also during the period from April 1, 1901 (data of organisation of United States Steel corporation), to December 81, 1902, by the following respective amounts, vlzt Paid off Between Paid oft Tot. Reduct'n Apr. 1, 180L and During Tear Apr. 1,1901, to Dec. 31, if'l. of 19W. Dec. 31, 1902. Purchase money obligations and bills payable ..$8,671,136.01 $12,884,658.85 $21.63.894.86 Special deposits 1,369,184.66 767,809.09 8,134,948.63 Total $11,047,870,87 $13,662,867.94 $24,700,888.61 The funds for the payment Of the above liabilities were provided entirely from the surplus net earnings of the organisation no new capital or bonded or other lia bility has been created In lieu thereof, although practically all of such payments might properly be funded, as the liabilities were those of the subsidiary companies prior to or at the time of organisation, which were In turn used for purchase of property and construction expenditures. As shown by the general balanoe sheet, the amount of these liabilities outstand ing on December 81, 1902, Is as follows I Purchsse money obligations $6,689,418.53 Bill payable 6.202,502.44 Special deposits 4.485,646.68 Total $17,377,467.65 PROPERTY ACCOUNT. The expenditure made during the year by all the properties and charged to prop erty account equaled, less credits for property sold, the total sum of $16,686,681.77. These outlsys were made for the completion of construction work at manufacturing properties under way when the United States Steel corporation was organised, also for necessary additions and extensions authorised since Its organization, for the ac quirement of additional ore and coal property, the opening and development of new mines and plants,' tor additional equipment and facilities demanded by tbe growing requirements of the business of the transportation properties, to secure material re duction in cost of manufacture, transportation of raw and unfinished materials and distribution of finished products, etc. The outlays as above are classified by properties as follows: EXPENDED BT United States Steel corporation on account of acquirement of stocks of subsidiary companies $ 258,473.31 Manufacturing properties 9,743,125.78 Ore properties 1,971,642.08 Coal and coke properties 2,048.168.61 Transportation properties 1,711,652.61 Miscellaneous properties Cr. 171,430.52 Totat $16,686,631.77 EMPLOYES AND PAYROLLS. The average number of employes in the service of all properties during the entire year was 168,127 The aggregate amount paid during the year for salaries and wages of em ployes waa $120,628,143 The following shows the classification of the number of employes and pay rolls between the several departments named: EMPLOYES OF Number. Manufacturing properties 125,826 Coal and coke properties 16,519 Iron mining properties 13,465 Transportation properties 11,160 Miscellaneous properties 1,667 i Total s 168.127 NUMBER OF STOCKHOLDERS. The following shows the 'number of stockholders In the United States Bteel cor poration in March, 1903, In comparison with the number at corresponding date In preceding yean 1902. Preferred 5,196 Common , 17,728 1903. Increase. 81,799 6,603 26,830 9.107 Total 48,019 68.629 15.610 The following does not Include the subscriptions tor preferred stock by 27,879 em ployes under plsn offered them tinker date of December 11, 1902. MAINTENANCE, RENEWALS AND EXTRAORDINARY REPLACEMENTS. The physical condition of the properties has been fully maintained during tbe year, the coat of which has been charged to current operations. The amount ex pended by all properties during the year for maintenance, renewals and extraordinary replacements aggregated $29,157,010.73. This total la apportioned as follows: Ordinary EXPENDED ON Maintenance Extraordinary and Repair. Replacements. Totat. Manufacturing Properties $14,099,217.94 $4,971,230.41 $23,077,441.41 Coal and Coke Properties 811,804.77 94,664.19 976.469,16 Iron Ore Propertle 15S.220.1I 156,320.11 Transportation Properties: Railroads 2,644,664.27 607.97.88 4.152,612.15 Steamships and Docks 213,801.37 191,317.80 606,119.17 Miscellaneous. Properties 15,619-66 63,612.95 89.111.71 Total $21,210,118.11 $7,926,791.60 $29,157,010.71 These expenditures were paid from funds provided from earnings to cover re quirements of the character Included herein. VOLUME OF BUSINESS. The volume of business done by all companies during the year, including sles between the companies; and the gross receipta of transportation and mtecellanebua properties, aggregated tbe total sum of $560,610,471.19. , PRODUCTION. The production of the several properties for the year 1902 was as follows: IRON ORE MINED: Tons. Tons. From Marquette Range 1,417.370 , From Menominee Range 1,476,754 From Gogebic Range 1,064,492 From verminion Range 1,067,627 From Mesaba Range .......... 7.778,026 16,063,179 COKE MANUFACTURED 9.621.567 COAL MINED, not including that used la tnaklng coke 709,367 BLAST FURNACE PRODUCTS t Pig Iron 7.862,112 Spiegel 121,266 Ferro-Mangaheee and Silicon 44,452 7,976.630 8TEBL INGOT PRODUCTIONl , Bessemer Ingot .'. , 6, 769.110 Open Hearth Ingots 1,984,708 9,743.911 ROLLED AND OTHER FINISHED PRODUCTS FOR BALE. . . " . Ttns. Steel Rail..' 1.920.786 Blooms, Billet. Slabs. Sheet and Tin Plats Bar 782.627 Plates 649,641 Merchant Bteel, Skelp, Shapes, Hoops, Band and Cotton Tie M64.560 Tubing and Pipe 744.062 Rods 109,230 Wire and Products of Wire 1,122,809 Sheets Black, Oalvanlxed and Tin Plate 783.576 Finished Structural Work 481.029 Angle and Splice Bars and Joint , 189,954 Spikes, Bolt, Nut and Rivet 42,984 Axle 136,787 Sundry Iron and Steel Product 29,177 - . Total .'. 1,197,212 I.."' Spelter M 21.982 Copperas . 14,224 Bbls. Cement 486.167 ORDERS ON HAND. ., The tonnage of unfilled order on the book. at tie dose of 1902 equaled 6,847.251 tons of all kinds of manufactured products. At the corresponding date In preceding years the order 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 I sold up until nearly the end of the) year 1903. ASSETS. Property Account: Properties own4 and operated by the several companies ' 11,458,035,551.87 Leu Surplus and Subsidiary Companies at date of acquirement of their Stocks by the U. S. Steel Corporation. April 1, 1001 $11,356,111.41 Charged off to Depreciation and and Extinguish ment Fund 12,011,856.53 128,367,967.04 Deferred Charges to Operations: Expenditures for Improvement. Explorations, Stripping and Development at Mines, and for advanced Mining Royalties, chargeable to future operations of the properties Trustees of Sinking Funds: Cash held by Trustees on accouut of Bond Sinking Funds ($4,022,000 par value of Redeemed Bond held by Trustees not treated as an asset.) Investments: Outside Real Estate and Other Property -. $1,874,872.89 Insurance Fund Assets 920,615.84 81,325,207,883.43 3,178,759.67 489.246.14 2,804,488.24 Current Assets: Inventories $104,390,844.74 Accounts Rec-lvnble 48.944.189.68 Bills Receivable 4J63.201.13 Agents' Balances 1,001,818.90 Sundry Marketable Stocks and Bonds 6,001,340.16 Cash 60,163,172.48 214.8J4,157.18 LIABILITIES. Capital Stock of U. S. Steel Corporation: Common $508,802,500.00 Preferred B10.28U0aoO Capital Stocks of Subsidiary Companies not held by U. S. .' , Steel Corporation (par value): t Common Stocks $41,400.00 Preferred Stocks 72,600 0O Lake Superior Consolidated Iron Mines, Subsidiary Companies ' 08,714.88 Bonded and Debenture Debt: ... United States Steel Corporation Bonds $308,757,000.00 Less Redeemed and held by Trustee of Sinking Fund 2,008,000.00 Balance held by the Public $301,059,000.00 Subsidiary Companies' Bonds $00,078,900.75 Less Redeemed and held by Trustees of Sinking Funds... 1,324,000.00 ' . ,.. V Balance held by the Public $50,654,900 75 Debenture Strip, Illinois Steel Company 40,426.02 Mortgages and Purchase Money Obligations of Subsidiary Com patties: . Mortgages $2,901,182.07 Purchase Money Obligations 6,689,418.53 Current Liabilities: Current Accounts Payable and Pay Roll $18,675,080.13 Bills and Loans Payable 6,202.502.44 Special Deposits due Employes and others 4,488,540.58 Accrued Taxes not yet due 1,051.605.42 Accrued Interest and Unrepresented Coupons 5,808,572.96 Preferred Stock Dividend No. 7. payable February 10. 1903 8,020,010,25 Common Stock Dividend No. 7, payable March 30, 1903 6,083,025.00 $1,018,883,600.00 318,91438 360,754,326.77 9490,580,60 49,829 ,21.78 Audited and found correct, PRICE, WATERHOU8H CO., Auditor. New Tork. March 12. 1908. Total Itseit r $1,546,544,234.65 Total Capital and Current Liabilities ..........$1,438,970,643.53 Sinking and Keserve Funds: , '' 81nking Fund on U. 8. Steel Corporation Bonds...; $1,773,883.83 Sinking Fuuds on Bonds of Subsidiary Companies 217,344.36 Depreciation and Extinguishment Funds 1.707,610.50 Improvement and Replacement Fund '. 16,664,190.90 Contingent and Miscellaneous Operating Fund 8,418.788.50 Insurance Fund 1,530,485.25 Bond Sinking Funds with Accretions Represented by Cash, and by redeemed bonds not tren ted a assets (see contra . Undivided Surplus of U. 8. Steel Corporation and Subsidiary Comparitea: Capital Surplus provided In organization of U. 8. Steel Corporation $25,000,000.00 Surplus accumulated by all companies lnc organisation of U. S. Steel Corporation 62,874.607.05 77,874,597.05 25,217,747.93 4,481,246,14 Total Liabilities 11,546,544,234.65 NOTE. In preliminary Report submitted to stockholder at the First Anuual Meeting, February 17, 1002, the accumulated surplus of all subsidiary companies to November 30, 1001, was shown a $174,844,220.82. This total, however, Included the surplus of tbe subsidiary companies at time of the original acquisition of their stock by United State Steel Corporation In 1001, which surplus in this balance sheet la stated In diminution of Property Account. Complete copies of the detailed Annual Report in pamphlet form will be mailed stockholders on and after April 13th. Copies may al be obtained after that date at the office of the Secretary, 71 Broadway, New York. 8s: v. 1: m bt
