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No. 50 Cyy^^
DNITED STATES STEEL CORPORATION
HEARINGS
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPRESENTATIVES
WEDNESDAY, FEBRUARY 14, 1912
m
WASHINGTOIT
GOVERNMENT FEINTING OFFICE
1912
83^728
UNITED STATES STEEL OOEPOEATION.
Committee on Investigation op the
United States Steel Corporation,
House of Representatives,
Washington, D. 0., Wednesday, February I4, 1912.
The committee this day met, Hon. Augustus O. Stanley (chairman)
presiding.
STATEMENT OF ME. PEECIVAL EGBERTS, JE.
Mr. Roberts was duly sworn by the chairman.
The Chairman. I understand, Mr. Roberts, that you desire to
make a statement touching the labor conditions in the United States
Steel Corporation; and the committee will be very glad to hear from
you.
Mr. Roberts. Mr. Chairman, it has seemed advisable, apparently,
from some testimony which hs.s recent][y bpen given before the com-
mittee, that the corporation sliould- present its side of the case, and as
a director of that corporation, I have been asked to tell you what I
know of it.
I regret very much that I have had little experience in pubUc
speaking, and my statement may, therefore, be much more disjointed
than it otherwise would be. If later on, however, there are any
questions which any members of the committee wish to ask me, I
shall be very glad indeed to answer them in detail.
The Chairman. You prefer, then, I assume, to make your state-
ment at the present time without being interrupted ?
Mr. Roberts. I should think that would be best, Mr. Chairman, if
it is agreeable to the committee. Then I can answer, in detail, any
questions which may arise.
The Chairman. Very well. Proceed.
Mr. Roberts. That you may have some judgment as to the value
of any testimony that I may give, I might say that I entered what was
then an iron works at the age of 19, in the year 1876 ; that I commenced
as an ofhce boy, and worked through the various departments of the
works, afterwards becoming general manager and later president of
the company.
I have boarded in the families of iron workers. I have kept house
as a bachelor in a four-room workman's house, among Polanders and
people of other nationalities, until the year 1900.
Up to that time I probably might say that I was daily in direct
contact with the workmen in the works; and after the year 1900, of
course, I have not been so closely identified with them.
My knowledge since that time has come largely through reports,
statistics, from the men in direct charge of the works.
3257
3258 UNITED STATES STEEL COEPOEATION.
I entered the board of the Steel Corporation upon its formation in
1901, and resigned in 1902.
I was invited to again enter the board in 1909, and since that date
I have been a member of the board, and for a part of that time, a
member of the finance committee.
To return to my subject, I have no apology whatever to make for
the United States" Steel Corporation in regard to its relations with its
eniployees.
I think I can say, briefly, and challenge any proof to the cpntrary,
that the Steel Corporation has done more to ameliorate and improve
and maintain the wages of its employees than the entire combined
efforts of all employers in the iron and steel, trade during the entire
nineteenth century.
In addition to that, I would say that, since the organization of
the Steel Corporation, they have done more in that respect than the
combined efforts of all their competitors.
I would also like to call attention to the fact, whicli it seems to me
the public might ha^c an erroneous impression upon from testimony
given here, that the Steel Corporation did not originate the steel
industry. It took it as it found it; and in no respect has it reduced
wages since that time; in no rcs])eet has it increased the onerous
conditions of its worlanen, but, in all directions, if you will follow
in detail the operations in the works, it has unproved conditions over
and above what thej' were prior to its organization.
We must clearly distinguish lictween the policies of the Steel
Corporation and the execution of those policies m the various works.
With the large number of operations which they control, the vari-
ous plants, you will find that, while the Corporation may inaugurate
a general policy, it will not necessarily and can not be carried out
with uniform quickness or uniform fulfillment of that policy through-
out the various subsidiary companies, due largely to organization,
geographical location, whether the plants are balanced properly; so
that these new policies may be put m place.
It is ver\' much like a man who lives in the country and may have
three or four horse,:! in his stable, and wants to go to town, and one
of those hoi-scs may take htm there in half an hour, and another one
may take liim there in an hour; they are all good horses; and the
management of these subsidiary companies, while they may be all
good managements, will not, in all cases, show regularity in carrying
out the policies of the corporation.
Briefly, first, to illustrate the various operations of these subsid-
iary companies, I tliink we might classify their activities under three
general main classes :
First, mining; second, transportation; third, manufacturing.
Again the mining may be subdivided into three subdivisions:
First, mining of ore; second, mining of coal, with its allied coke
industry; third, the mining of limestones.
Coming to transportation, it is of two classes, by land or water.
Third, in regard to the manufacturing, which is probably the
most important part from the standpoint of the committee, we have
again three subdivisions :
The first subdivision would include those processes which, by
their nature, are necessarily continuous, such as the making of pig
iron in the blast furnace.
UNITED STATES STEEL CORPOKATIOiSr. 3259
The next subdivision would be. that of a more or less continuous
process, which would be illustrated by either the open-hearth or the
Bessemer process of making steel ingots.
Third. Those operations which are not necessarily in themselves
continuous, but are rendered more or less so, due to the continuous
nature of the prior pocesses upon wliich they depend.
Each of these different characters of work must be treated inde-
pendently. What may be satisfactory in one of them is not necessa-
rily satisfactory in another, and if we go back you will find for many
years prior to 1900 workmen worldng side by side in these various
mills, some making 8 hours, some maldng 9 hours, some making 10
hours, some making 12 hours, perfectly in harmony.
I might also say m this regard that my experience has always been
that while it was extremely easy and without any difficulty at all to
turn a 10-hour or an 8-hour position into a 12-hour position it was
impossible to get a 12-hour man to go back to a 10-hour position.
The Chairman. What do you mean by that, Mr. Roberts ?
Mr. Roberts. I mean this: That a man preferred the 12-hour posi-
tion to the 10-hour position. Necessarily, it gave him more pay.
But, even with that, he considered that his conditions were
improved. As a rule the 12-hour position was under cover, whereas
the 10-hour position would be out of doors.
I have seen in times of depression, when the works were not fully
employed, 12-hour men rather lay off than take a 10-hour position.
The Chairman. I do not want to interrupt you, Mr. Roberts, but I
may be laboring under a misapprehension, and I want to ask you
about this.
I shall have the report of Commissioner Neill here in a few moments ;
a,nd I find in his report that, as a class, 12-hour men are paid less than
10-hour men — unless I greatly mistake his statements or have misread
them. I have sent for the report.
Mr. Roberts. I do not know, of course, to what you may refer; but
we can not judge a cow and a bull in the same ring at the same time;
and when we refer to 10-hour men and 12-hour men, I would refer to
what might be termed "unskilled labor."
Of course, when you come to 12-hour men that are skilled labor, that
is another matter.
Then, again, there are 10-hour men that are skilled men; 9-hour
men that are skilled men; 8-hour men that are skilled men, also.
Mr. Sterling. And they might get more wages than an 8-hour
man that was not a skilled workman.
Mr. Roberts. Undoubtedly. But if we are going to compare
them, I speak of 10-hour men as the unskilled men; for instance,
with the pick and shovel, who are working the 10 hours. It is con-
tinuous labor, whereas the 12-hour man, who is an unskilled laborer,
and is brought into a 12-hour position, no longer operates as a con-
tinuous operation. He is on duty 12 hours, but his work is not
continuous. The laborer at 10 hours is a continuous operator.
He may be using a pick and shovel, cleaning up, and things like that,
and his hours of labor are 10 hours; showing that, on the part of the
men, they prefer the 12-hour to the 10-hour occupation.
Also it wants to be borne in mind that while these operations are
continuous, and have always necessarily been continuous, it does not
3260 UNITED STATES STEEL COBPOKATION.
follow that the employee is continuous in his occupation throughout
the year.
The blast furnace goes on from day to day, from week to week,
from month to month, without cessation until it is worn out and put
out of blast. It must be run in that way.-
While we talk of these continuous operations, in the past as m the
present men have not worked continuously. They have taken tmie
off. They have taken a day off, and probably a great many of them
would average a day off in a week. There are always a number of
understudies, and men have taken their days of rest.
When I first entered the iron business, steel was practically un-
known, except for purposes of railroad rails and tools. The blast
furnace was operated 7 days a week, 12 hours a turn. The unit of
activity in rolling mills was then the puddling furnace. Those men
operated on the night shift, 5 nights a week, 21 hours; and on the
day turn they operated 6 days a week, 12 hours; the finishing depart-
ments did the same. They were all 12-hour turns.
The introduction of steel extended the continued processes beyond
the blast furnace, in maldng iron. The blast furnace made cold pig-
iron, which was transported, possibly, many miles to the puddling
nulls and finishing nulls.
There was no dependence of one upon the other. By the use of
steel a continuous process was formed from the melting of the pig-
iron imtil the finished article was produced. Hence all these subse-
quent processes became more or less dependent upon the running of
the blast furnace and continuity of then- operations was necessarily
increased.
So that we find that, prior to 1900, many of the mills operated
not only six days of the week, but the six nights of the week, excepting
Saturday night. They would commence Sunday night, and end
their work Saturday, at 6 o'clock in the afternoon.
Such was the situation upon the formation of the Steel Corpora-
tion.
■\'ery early in the existence of the United States Steel Corporation,
even prior to my retirement in 1902, a number of these questions had
been discussed, and efforts had been made to develop some improve-
ments, in the conditions of labor.
Those after I retired were continued, and I have with me here, and,
with the permission of the committee, I would very much like to
submit, certain data and information on that subject.
The Chairman. At that point, Mr. Roberts, what I referred to a
few moments ago, in the report of Commissioner of Labor Neill is
this: I find that Commissioner Neill in his report states that more
than 56.48 per cent of the 172,706 employees of the steel industry
generally earned 16 cents and under 25 cents per hour. In another
place, he speaks of the number of men employed in blast furnaces.
I find here in another report, that he speaks of the blast furnace
men working 84 hours a week, and on page 25 of the commissioner's
report here I find that of the 31,354 blast-furnace employees, 16.29
per cent of those who work 12 hours a day seven days a week earned
less than 14 cents an hour, while those who worked in the puddling
mills, which I believe is 10-hour work, showed 5.35 per cent earning
that sum, and in the roHing mills, 5.74 per cent, and in the tube mills,
3.01 per cent.
UNITED STATES STEEL COEPOEATION. 3261
Mr. KoBEETS. Mr. Chairman, I hold no brief for the steel indus-
try as a whole. I think those figures bear out the statement which I
made a little while ago, namely, that the Steel Corporation, as a cor-
poration, has done more to benefit the conditions of its own employees
than the united efforts of all its competitors since its formation.
The Chaieman. Not to interrupt you, I want the chairman to be
understood. I have said, gratuitously, and in justice to the Steel
Corporation, that I did not consider the Steel Corporation, in the
treatment of its employees, was a greater offender than its competi-
tors; nor was I denying that, in many instances, I had found that
the rate of pay by the Steel Corporation was in excess of that of its
competitors. I was speaking of the conditions generally. There is
a slight difference, in Pittsburgh, I understand, of a cent or a cent and
a h^f an hour, or something like that; but the general condition is
the same.
Mr. EoBEETS. I think, Mr. Chairman, that if Commissioner Neill
had confined those figures to the Steel Corporation only, there would
have been a very different result produced. That data gives infor-
mation for the industry as a whole, which I am not here to-day to
defend, of course. I think, however, that that is rather an argu-
ment in favor of the position which I took a little while ago, as I said.
The Chaieman. I do not want to interrupt the thread of your argu-
ment, but I would hke to ask you this question at this point, Do
you work these men 12 hours instead of 10 hours because they pre-
fer to work 12 hours? Is that the reason for this 12-hour day?
Mr. RoBEETS. It is largely one of the reasons. In my experience
in the past, we discussed, and in some places it was tried, the eight-
hour turn — three turns in 24 hours. That is possible. It is espe-
cially possible when there is a surplus of labor over and above the
requirements or demands of the trade. When trade is active it is
not so possible, for the reason that men object to the inconvenient
hours at which they are required to come to their work. If, for
instance, you will consider that the work will start, say at six a. m.,
that means that the first turn stops operations at 2 p. m. ; the second
turn then works from 2 p. m. to 10 p. m., and the third turn must
come on duty at 10 p. m.j and work until 6 a. m.
The men object to that. They do not like it. They prefer to have
what they term a "day" or a "night" turn, so that they can either
sleep in the daytime or sleep at night.
That is the men's side of it. From the operating standpoint of a
large corporation
The Chaieman. Before you get to that, what I wanted to get at
was this: Whether the reason for this 12-hour day was a desire to
please your employees, to accede to their wishes, or whether it pro-
ceeded from a metallurgical necessity.
Mr. RoBEETS. There is no metallurgical necessity whatever.
The Chaieman. There is no metallurgical necessity for a 12-hour
day?
Mr. RoBEETS. None whatever.
The Chaieman. You have instituted this 12-hour day because your
men prefer it ?
Mr. RoBEETS. It was a matter of mutual convenience, I should
say; a desire on the part of the men, probably, to obtain a greater
rate of wages by so doing, and then, as I say, a convenience on the
3262 UNITED STAT1.S STEEL COJU'nHATION.
part of the operators in the direct opcrtitifins of their mills, due (o I tie
inconvenieriee of tlie 3-hour turn.
As T was about to way, Mr. rhairman, yon must realize —
The Chaikmax. I think J understand.
Mr. ROBEKTS. I was ^oin^ to say, Mr. Cliairnian, if y<>\\ have
several thousand men, there is always a pereentuKe, of those men who
for some reason or other do not report for work. It is necessary, thftn,
to supply their places wit h others, who are what you nii//lit t<'rm extra
men, who come out and are j)rejiared to take the j)laees of those who
do not re|)oii for duty.
When yon come to a turn Ijet-'inninK at 10 o'clock at ni^ht or 12
o'clock at nifrhl, it is almost imjiossihle to find those .substitutes.
They will not come out. They will not ri.sk coming,' out. They will
say that they do not know wlicther they will ^'ct work or not, and
they will not appear.
So that, really, the 12-hour turn develops, I Hiie;ht: sa,y, from eon-
siderations of mutual convenience on both sides. It is not a necessity.
The CifAiK.MAN. As I nn<lerstand, it was the choice of the men in
the first })lace, ami a matter oi convenience and economy, not
necessity, in the second [)lace; and those two motives, as 1 under-
stand you, were the fjuidin^ and i/ovej-nin^' incenti\f, the reasons for
the Cfetahlishment of tlii.s 12-hoiir syst cjn '.
Mr. KoBKiiTS, That is, in rny ex[)erience, as I undcrvstand it; yes,
Mr. rhairman.
The Chairman. If there is no meddlurj^iciil necessity for it, and if
the profitable conduct of this business does not require it, did you ever
consider tlie reltition of this 12-hour einployment to society a,nd to the
family of the workman? It is a, matter that interests me very
deeply.
Assuming that he is n soljer, disci eet, industrious man you have
a family, I presume: I hnve -the piesence of tiie head of his family
with his family, to my mind, is in a way neressary. We you and T
anfl all of \ir,, even the man who woiks 12 hours a day should pro-
vifle sometliinj.' more foi- his wife and children than raiment and sus-
tenance A man's presence in tlie house, his personal »\ipi;rvm<>n
of the educiitlon, thr' moral training.' of his children, from the, view
point of a lejfislator, who is a conservator not only of tlie law, but of
the welfare of s'^ciety, is necr^ssary.
I fancy that a man working 12 hours a day, out of which time must
come his time for eating' liis bieakfast afid siifiper and all that, would
have little or no time, excejit for sleep, in the bosom of his family.
He would ha', e but little time for the care and rearing of his children.
Did that pha.sc of this industrial problem ever occur to the directors
of the TJnited .Steel t'orfjoiation '.
-Mr. liOBKfiTH. Mr. f liaiiman, v.e have not reacheri Utopia in this
country yet, or in ariy other coufitry.
If we go into an academic discussion of those matters we are ripen-
ing upa very wide field, a field which even ext.ends far beyond the
operations of the United States Stee] (Vuporation or even the steel
industrr of this country.
The CiiArp.MA.v. This Ls not an acjidemie proposition, Mr. KobertH.
It is a practical, existing, vital condition with Congrcfis, for tiiisseasfm:
For instance, in the last naval aj^pfcf„ij,tj,7n bill 1 introduced
several resolutions providing that munitions of war, arrnor, arma-
UNITED STATES STEEL COEPOKATIOX. 3263
mcnt, plates, and guns, and all that sort of thing, for battleships
should only be furnished to the Government under certain conditions ;
and that provision was incorporated into the law.
There is another resolution that has been introduced by ^fc
Hughes, that there should be an eight-hour day in those establish-
ments, and that men should only be required to work eight hours a
day to produce them.
This Government is not regarding this as an academic proposition,
but is regarding it as a vital matter, as a public necessity', or at least,
as a wise public provision, and refuses to work men upon any of its
public buildings more than eight hours a day, even though the man
wants to work longer. Upon this structure here no man was allowed
to work more than eight hours, even though he applied for the privi-
lege. So that this is a condition and the reason for that provision
was not that the Government was indifferent to the wishes of the
wage earner, but that we regard it as more important than saving the
Government money, more important than the wishes of the employer,
more important than any of the reasons 3'^ou have given as governing .
the United States Steel Corporation, that a man should have the op-
portunity, if he were so disposed, to give some part of his waking
hours to the training as well as to the mere sustenance of his family.
Mr. Roberts. Do I understand, Mr. Chairman, that yon are now
discussing the general question of hours of laboi' ?
The Chairman. Yes.
Mr. Roberts. That extends, of course, far beyond the confines of
the operations of the United States Steel Corporation. I understand
that that would extend to all trades and activities, no matter of what
character.
The Chairman. Yes.
Mr. Roberts. For instance, to agriculture, where probably the
hours of labor are longer than in any other occupation in the country
to-day.
The Chairman. Yos.
Mr. Roberts. It would extend to various other activities where
the 24 hours are divided into two turns; and they are numberless. I
might mention them, but doubtless it is unnecessary.
I think, however, we are going into a theory, if we s;o uito that, as
distinguished from a condition.
I say that the r2-hour turn has always been in exi.'-ti^nce in the steel
industry; that it is not a new development due to the organization
of the Steel Corporation; the Steel Corporation found it there, and
the Steel Corporation has not added to the burden of its men, but,
with what statistics I have here, I think I shall be able to show j'ou
that they have ameliorated those conditions to a considerable extent.
The Chairman. I may be mistaken, but I am under the impression
that at one time you had an 8-hour ilay in the Hoinestead mills, and
that at one time ^h\ Carnegie wrote a letter in defense of it; and I
read into the record here a long statement here from Capt. Jones,
whom you knew probably, defending that S-hour day, and giving
some reasons in a much better wav than I have done i'or the S-hour
day.
Mr. Roberts. Mr. Chairman, there are to-day some positions in
the works where an 8-hour turn is still used.
3264 rxiTED states steel coepoeatiok.
The Chairmax. Am I right in the idea that the Homestead Co. at
one time did have a universal 8-hour day ?
:Mr. KoBEETs. I am not prepared to say that whether to a greater
or lesser degree thev mav have had it. For instance, they have an
8-hour day in some "departments still. In the Bessemer department,
for instance, there are three turns of eight hours. I think in their
axle forge their hammers are run on an 8-hour turn, simply because
the labor in those departments is more continuous and more strenu-
ous than ill others. But this whole question of the number of hours
of emplo3niient is one that, it seems to me, goes far beyond the present
investigation.
The Chaiemax. That may be.
Mr. Roberts. I think we can discuss and argue on that for a long
time. Who shall say that eight hours is the proper liinit? For
instance, in my experience, before the year 1900 I estabUshed and
offered to my men woiking in the structural department of our works
a 9-hour day instead of a 10-hour day. They came back and said
they did not want the 9-hour day; that they would Hke the 10-hour
day, but they would hke to have a half holiday on Saturday.
Who shall say l!iat 8 hours is the proper time ? We ma}' establish
an 8-hour day, and somebody will saj- that it ought to be 7 hours.
There is no doubt that the minimum number of hours is the pleasant-
cst; but, in the economics of this world, how shall we determine what
that limit may be ? We may do it arbitrarily, by legislation, but even
in doing that we shall come up against a problem as to whether even
with legislation our legislation will provide food as well as the number
of hours that the men shall work.
I do not know. I think that one man in a certain occupation can
work 12 hours alongside of another man who is working 10 hours. My
experience is that I have seen no iU effects from that 12-hour labor. I
must confess I see no worse effects on tlie part of the 12-hour men than
I have seen among the 10-hour men.
In other ^yords, those men tliat work 10 hours a day I do not think
have any brighter, happier homes than the men who work 12 hours a
day; not a particle.
You may take extreme instances in both cases and you may present
very sad results, undoubtedly, but then, you can find just the con-
trary. Human nature varies very much in that respect.
I have been m one house of a workman obtaining the same wage as
another and that house would be so clean that you could eat off the
floor, and the other house would be in such a filthy condition that you
did not feel hke going into it. Wliy is that? The wage conditions
are exactly the same.
The Chair.max. Oh, of course, you will find individual instances of
that kind.
Wliat would you think of a 14-hour day ?
Mr. Roberts. It is very difficult to say, sir. I should say 14 hours
is somewhat too long a stretch.
Tlic Chairman. I do not desire to enter into an academic discus-
sion. What I want to get at is the facts.
You spoke of the unwisdom of Congress prescribmg the number of
hours of labor. That would be somewhat revolutionary, I presume.
You so regard it ?
UNITED STATES STEEL COBPOKATIOISr. 3265
Mr. Roberts. I do not think I used the term "unwisdom," sir.
The Chairman. Well, that it would be impracticable?
Mr. Roberts. No.
The Chairman. What do you think about the propriety of having
Congress fix the number of hours for men to labor in industrial pur-
suits ?
Mr. Roberts. I am not, in the first place, prepared to say that it
would be constitutional, Mr. Chairman, beyond a certain point. ^
The Chairman. I am not. I agree with you.
Mr. Roberts. But where they were acting within their rights, I
see no reason why they should not do it. The results would have to
speak for themselves.
The Chairman. What do you think would be the result ?
Mr. Roberts. We have no Chinese wall around this country. We
are one of the nations of the world, and we are acting in world-wide
activities; and whether we" can change by legislation the laws of
nature is a question that I am very doubtful about.
The Chairman. The 12-hour day is not a natural law, is it? The
12-hQur day, seven days in the week; do you think that is a natural
law, ordained by God or nature ?
Mr. Roberts. It is a law of nature that men must subsist. What
brings these men to this country is that they expect to find better
conditions than those under which they have existed in the countries
they are leaving. I see no reason for this immense immigration we
are having unless conditions in this country are better than those
which they leave at home.
The Chairman. From whence comes tliis immense immigration?
Mr. Roberts. At the present day largely from southeastern Europe
and Italy.
The Chairman. And Roumania ?
Mr. Roberts. All those countries.
The Chairman. And from the Balkan States ?
Mr. Roberts. From Austria-Hungary, Poland, Russia
The Chairman. And southern Italy ?
Mr. Roberts. And southern Italy.
The Chairman. How do these States compare as to intelligence,
morality, the recognition of the Christian God, and in prosperity with
Germany, France, England, Ireland, Scotland, Wales, Norway, and
Sweden ?
Mr. Reed. Are you not, Mr. Chairman, making the mistake of
crediting Mr. Roberts with the omniscience you found in Mr. Bran-
deis ? I think it is a little away from the topic on which Mr. Roberts
wished to speak, if I may be permitted to suggest it.
The Chairman. The minutes show that Mr. Gayley said that Mr.
Roberts is a great expert, and I beheve he is. Surely Mr. Roberts
knows sometmng of the countries from which these people come who
have worked by thousands in his mills ?
Mr. Young. He is an expert on what, Mr. Chairman ? What was
that testimony? I do not remember it.
The Chairman. An expert ' ' on all departments of the iron and steel
manufacture;" page 107 of volume 3 of the hearings.
Mr. Young. Ihe conditions of these men in Europe would hardly
seem to be included in that.
3266 UNITED STATES STEEL COEPOBATIOK.
The Chairman. I simply asked that question. If he does not
know, he can tell me so. It will do no harm for me to ask hmi. i can
never find out anythmg if I do not ask.
Mr. Sterling. Do many Germans and Swedes come m now (
Mr. Roberts. I do not think they come in as large numbers as they
did formerly. At one tune there was a large mmiigration of Swedes
into the central West and the Northwest. They went largely into
largely into agriculture. Not a great many Swedes have gone mto
the steel industry. I have had some very good ones, but not m large
numbers, although I think about perhaps in the eighties there were
some. There were more than at the present t'jne.
You will find even among the immigration from southeastern
Europe and Italy there are two distinct classes of people, one who
seem to have come here Nnth the intention of becoming citizens of
this country, and another who are largely single men, or who come
as single men, leaving their famihes behind, with apparently no inten-
tion of remaining in the country. Those are the people among whom
you find these inferior conditions.
I have seen Polanders, Italians, Hungarians, Austrians, who come
here intending to become citizens. They do become citizens. Their
children go to scl)ool. They are extremely intelligent. Those people
live respectably on exactly the same wage as you find these other
Eeople receive who live under conditions which have been testified to
ere recently. There are t\vo distinct classes. The same thing is
true of other races. You may find a very tidy Irish family, and
another one living with the pigs in the same room.
The C1LA.IEMAN. You speak of a long and intimate experience
among those laborers. In your opinion, what amount or money
to-day is necessary for a man, say, and his wife and three children,
occupying a three-room house, to supply themselves and have meat
twice a day, and clothe that family decently and keep those children
in school ?
Mr. Roberts. That question I do not consider that I can answer.
I can only say
The Chairman. Could he do it on less than $2 a day ?
Mr. Roberts. I would have no answer on that, whatever. Of
course, in the first place you might raise the question, is meat neces-
sary twice a day ?
The Chairman. No, it is lu.t; but a fellow likes to have it if he
works hard.
Mr. Roberts. Opinions differ on that question. We have a good
many vegetarians who think it is better not to have any meat at all.
The Chatrman. In the German army, where they get 15 or 20
cents a day, they have invented a capsule that contains the proteids
in great strength; it can be made from the liides of dead animals, the
heels, the feet of beeves, and such offal from slaughterhouses, as well
as from good meat; and they take this capsule and put it in a soup
made, of rye and barley, f nd it sustains life very well. Outside of
the merely fantastical" and whimsical notions that people have of
eating meat because it is pleasant, a man might probably subsist
just as well that way as any other; but I fancy that would be objec-
tionable on account of certain idiosyncrasies of the palate. Laboring
men Hke meat twice a day, if they can get it. For that reason I predi-
cated the question on meat twice a day. I do not mean to say that
UNITED STATES STEEL, CORPORATION. 3267
afman can not subsist without any meat at all. They do it in the
Balkan States, Ocs you know; these Italians, Poles, people from
southern Italy and Roumania, and Syrians that come over here are
not in the habit of having meat twice a day. That is what we call
here in the House — and we often talk about it — the American style
or standard of living for the laboring men.
I want to know if that plan that we hear so much about in the
House, and so little about in the factory, could be maintained on less
than $2 a day.
Mr. Roberts. Bear in mind, also, Mr. Chairman, that the English
laborer at home does not have fresh meat probably once a week.
Mr. Sterling. Do you know to what extent the workmen in your
conapany use meat ?
Mr. Roberts. I do not know. I 6ould not answer that question.
I think, however, that you would probably find that they had meat
rery nearly once a day A great many of these European races,
however, are not meat eaters. They do not care for meat. The
ItaUan does not want meat. He wants macaroni, greens, and things
of that sort. If they have the privilege of eating meat, they will not
use it. They prefer the other Kinds of food. They have grown up
with those tastes. They do not know what meat is. I do not con-
sider that meat, in itself, fresh meat, is essential to a diet.
Mr. Sterling. Before leaving this question of the eight-hour day,
have you ever considered as to what day is the best in order to pro-
duce the most? I have heard it stated and argued that in many
callings, in many lines of work, taking it over a long period of time,
men can accomplish more and produce more in eight hours a day
than they can where they labor a greater number of hours. Have
you ever given that question any consideration 1
Mr. Roberts. I think it depends very much upon the character
of the occupation, Mr. Sterling.
Mr. Sterling. I think that is true in any case.
Mr. Roberts. Where it is a concentrated occupation. But, for
instance, take a man who is an engineer, attending an engine, who
simply remains while the engine is running properly; he is really
without employment; he simply remains on duty in case anything
occurs. On the other hand, in the case of a man that is occupied at
some concentrated work, involving not only the hand but the mind
as well, I believe much better resmts can be obtained by the shorter
day.
Mr. Sterling. Take a carpenter, for instance, who goes out and
builds a house, or who works m a carpenter shop, or a painter. Con-
sider that class of men. I have heard it sa'd, that they could do
more, taking it over a number of years, by having an eight-hour day
six days in the week, than they could with a longer day.
Mr. Roberts. I think that is quite true, sir. I think there you
have the continuous operation. In the case of a carpenter, a brick-
layer, and those men who are working at manual labor, so to speak,
with the hands, a shortened day, within reasonable limits, does not
reduce the output very materially. I think there are some advan-
tages in it.
Mr. Gardner. Would you include carpenters with painters and
bricklayers in that statement ? What I mean to say, is this : it has
always seemed to me that there was a great deal more diversity to the
carpenter's occupation than to that of painters and bricklayers.
3268 UNITED STATES STJSJilj UUBi-unAj-x^^-. .
Mr. Roberts. There is, Mr. Gprdner; but, at the same time, it is
a continuous operation, by hand, with what you might term tools,
operated not by steam or electricity but by hand power.
Mr. Gardner. There has always seemed to me to be a diiierence
between the kind of work that the carpenter does who works out of
doors and the kind of work done by a carpenter who works in a car
shop, for example.
Mr. Roberts. There is a difference, again.
Mr. Gardner. I have noticed a very great difference.
Mr. Roberts. One is machine work and the other is skilled hand
work.
The Chaieman. ^Is to these vegetarian proclivities of the Italian,
the Slav, the Roumanian, the Servian, which distinguishes him in his
tastes from the American citizen, does that account in any way for
the exodus of the Ajnerican citizen from the steel industry in the
last 10 or 15 years, and the influx of these people into that business,
more especially than other businesses ?
Mr. Roberts. No, Mr. Chairman; the increased activity and en-
largement of the industries of this country during the past 15 or 20
years has-been so great that the increase in the American population
has not kept pace with it. We have Americans in the steel industry
still; just as originally, you foimd that Americans were doing more
unskilled work in all industries; as the industries developed, they took
higher and more skilled positions. They are quicker to adapt them-
selves than any other nation of workers to their surroundiags, and
thev take the better paid places. Just the same as in railroad
building; my first experiences in railroading were that our con-
struction gangs were usually all Irishmen. They have given place
entirely to other nationalities. You will find all raih-oad building
is now done by the character of immigrants that are working in the
steel works. Go on the western roads, and you will find Asiatics doing
that work; and in northwestern Canada Chinamen and Japanese. It
is a question of supply and demand, entirely.
It Ls extremely difficult to establish one uniform rule as to hours of
labor, when conditions are so different.
As I was going on to say, side by side in the steel works you will find
8-hour men, 9-hour men, 10-hour men, and 12-hour men, all working
in harmony, no one finding fault with his occupation being more
burdensome than that of his neighbor; and that condition existed
prior to the organization of the United States Steel Corporation. The
situation that existed on its formation was that in the continuous
operations there were 12-hour turns, and 7 turns a week, so far
as the blast furnace was concerned. In the rolling mills there were
12-hour turns, with a few exceptions. The ordinary laborer had
10-hour turns. The rolling mills worked 11 turns per week, and
some of them worked 12; which, as I said, was due to the substitu-
tion of steel for wrought iron, making those processes necessarily
dependent more or less upon the running of the blast furnace.
That is the condition which existed at the time of the formation of
the United States Steel Corporation.
The Chairman. Right at that point, another thing occurs to me,
Mr. Gardner, Mr. Roberts was speaking before you came in of blast-
furnace conditions, and you were anxious to find out about those ?
Mr. Gardner. Yes. I would like to ask him some questions.
UNITED STATES STEEL COEPOEATION. 3269
The Chairman. You may proceed with your questions at any time.
Mr. Gabdnee. I will ask ym this, Mr. Roberts:
In the first place, take this 12-hour day in your blast furnaces.
We have had a good deal of varying evidence before this committee.
Some witnesses have said ^hat the men actually work about 4
hours out of the 12, and the other 8 hours they are more or less as you
have described the engineer who is doing nothing. Other people
have said that 9 hours out of the 12 thay are practically at work.
The witnesses have varied, and the reports have varied as to what
they do in the time when they are off work — whether they can read
the newspapers, whether they have some comfortable place, and so
on. Everybody seems to agree that they can not leave the works
during those 12 hours.
I would Hke to have a little elucidation of that situation, as you see
it.
How many hours, for instance, do these men who are on duty 12
hours actually work, in the blast furnaces ?
Mr. Roberts. The discrepancies, I think, in regard to the
statements that have been made, Mr. Gardner, largely might be
described, as it seems to me, as if some one on a partly cloudy day
should observe the amount of time the sun was sMning during that
day, and thus seek to estabUsh the fact that all partially cloudy days
had a certain amount of sunshine. In other words
Mr. Gardner. I can understand that the circumstances vary, of
course.
Mr. Roberts. No two days, in other words, may contain the same
degree of labor or the same length of labor, but
Mr. Gardner. I can understand that perfectly well; but there must
be some meteorological way of ascertaining the percentage of
clouds.
Mr. Roberts. In the first place, what would you determine to be
labor? That is, there are varying degrees of labor. A man part of
the time may be working with his brain, he may be performing hard
manual labor with his hands ; he may be performing very light manual
labor with his hands; it is varying so much in degrees. I should say,
however, as to those men occupied in those positions around the blast
furnaces, no two of them would perform the same periods of labor
in a day. If you strike an average, you might take an average of 50
or 60 per cent of their time as occupied, as a whole; but one man
might be occupied 80, another 70, another 60, and so on.
Mr. Gardner. What I wanted was the general average..
Mr. Roberts. I do not think these men around the blast furnaces
would work more than 9 hours out of 12. Somebody else may
say: "That is not work. That man is not doing anything."
Mr. Gardner. In your opinion a man is working 9 hours out of 12,
in one form or another ?
Mr. Roberts. I should say yes. That is my guess.
Mr. Gardner. Either at hard or Mght work.
The Chairman. What does he do ?
Mr. Roberts. Each man does something difl'erent; the men that
tap the furnace, the men that pick up the bars, the men that tend the
beds, the filler of the furnace, who sees that the barrels are fetched to
the top of the furnace, with ore, coke, and limestone. No two of
those men are engaged in exactly the same work, excepting in a few
3270 rXITED STATE,
instances, when thev are termed helpers, and such things as that
The work is not continuous. You have a spell of work, and then tney
stop, and then another spell, and another stop.
Mr. Gaedxer. You have estimated that the}- are required to work
9 hours out of the 12 «
Mr. Roberts. Of all kinds, yes. . i u ^
Mr. Gahdneb. During the time that they are not at work but are
on dutv, what may they do I ]\Iay they go to sleep '?
Mr. KoBERTS. Anytliing.
Mr. Gardner. ^lay they go to sleep ?
Mr. Roberts. Anything.
Mr. Gardner. May they read ?
Mr. Roberts. Anything.
Mr. Gardner. Are there any places where they have light to read
by? -
Mr. Roberts. That depends very much upon the type of furnace;
upon }iow modern the furnace is, and what the facUities are.
Mr. Gardner. May they eat their dinner?
Mr. Roberts. They may do anytliing they want to. They are
there. You might say that, to a large extent, it is like an army
defending a city. They may be called on at any moment. That
furnace may get into trouble', and the whole- number of men may be
called Lustanfly to that one spot to protecct it. It may have a
break
Mr. Gardner. These furnaces are out of doors 'I
Mr. Roberts. No, sir; they are sheltered, with roofs over the cast-
ing houses, and so on. They are protected from the weather.
Mr. Gardner. So that if it is raining
Mr. Roberts. They have protection.
Mr. Gardner. The men are under cover ?
Mr. Roberts. Oh, j'es.
Mr. Gardner. But not wliile they are worldng?
Mr. Roberts. Yes; most of them. Probably some fillers, where
they are getting up the raw material, would not be under cover.
i'lr. Gardner. Tlie furnace is out of doors, is it not ?
Mr. Roberts. No; the furnace itself is protected; all the working
space is protected aroimd the furnace. You don't want rain to get
into Hquid iron.
j\Ir. Gardner. It is protected by an open shed ?
Mr. Roberts. Yes; and by the roof.
^Ir. Gardner. Outside of the blast furnaces, according to the syn-
opsis which Commissioner Neill gave of his investigation of the steel
industry, I notice that a considerable part of the men were working
the 12-hour turns 7 days. Am I correct in that ?
Mr. Roberts. You are speaking of the industry as a whole, or of
the Steel Corporation ?
Mr. Gardner. The industry as a whole.
Thefi I wiU ask you this: Outside of the blast furnaces, are there
any men who work 12-hour turns; or, if you choose to put it so, are
on duty 12 hours a day for 7 days a week, outside of the blast
furnaces ?
Mr. Roberts. So smaU a number that it would hardly be coimt-
able. I would say that before I complete my testimony I should be
UNITED STATES STEEL COBPOHATIOK. 3271
glad if the committee will permit me to put in e^idellce the exact
percentages of 12-hour men working in each individual subsidiary
company of the. United States Steel Corporation to-day, showing
exactly the percentages, the hours of labor, and the number of turns
per week.
Mr. Gardner. And showing the number of men ?
Mr. Roberts. And showing the number of men.
Mr. Gardner. As well as the percentage ?
Mr. Roberts. As well as the percentage.
Mr. Gardner. I, for one, should like verj- much to have that.
Mr. Sterling. And the wages ?
Mr. Roberts. I have not the wages in all instances. I have them
in some cases.
Mr. Gardner. I have no doubt that the Chairman would be glad
to have that submitted, as a part of your evidence.
The Chairman. Oh, yes.
Mr. Gardner. How about men working 12-hour turns for 6 days
a week outside of the blast furnaces ?
Mr. Roberts. That is the usual custom. That is, the men who
are in what are termed the noncontinuous operations, the ordinaiy
day laborers, with pick and shovel, work 10 hours a day.
Mr. Gardner. How about the noncontinuous operations around
the blast furnace.
Mr. Roberts. Aroimd the open hearth furnace, or around the
finishing mills, the turns are 12 hours.
Mr. Gardner. I do not understand the terms very well; but after
the metal has come out of the furnace, it has some other operations
through which it has to pass ?
Mr. Roberts. Before you came in this morning, Mr. Gardner, in
my testimony I divided the manufacturing operations of the steel
industry into three distinct classes.
First, the production of pig iron; second, the production of the
steel ingots from the pig iron; third, the production of the article in
its finished form.
Mr. Gardner. Yes.
Mr. Roberts. Those are three distinct operations.
Mr. Gardner. Yes.
Mr. Roberts. The first one, the making of pig iron, is absolutely
continuous, and must necessarily be so. 'fiie other two, the bessemer
and the open hearth, are more or less necessarily continuous. The
final operations of the production of the finished material are not nec-
essarily continuous in themselves, but are rendered continuous by
reason of the prior operations in the making of the steel ingots and
the pig iron.
Mr. Gardner. Let me ask you right there : Is the operation of mak-
ing the pig iron necessarily continuous after the time the pig iron has
come out of the furnace? I mean the metal after the furnace is
tapped? Must it then be continuous? You could not let it cool
first?
Mr. Roberts. Absolutely so, for you have partly deoxidized mate-
rial above what you have tapped, for a height of .60 or 60 feet.
The operation from the time the blast ftirnace is blown in until it
is put out for repairs, must never stop.
17042— No. 50—12 1
3272 UNITED STATES STEEL, COKPOBATION.
Mr. Gaednee. I understand as far as the furnace is concerned. I
was speaking of the metal after it came out of the furnace; after it
was tapped; as to the handling of that. . . .
Mr. KOBERTS. It is tapped in liquid form and run mto what is called
a mixer. It never becomes cool. ....
Mr. Gardner. It never becomes cool until it is in ingots i
Mr. Roberts. TJntil it is the finished article.
Mr. Reed. Until it is a rail.
Mr. Roberts. From the time the ore goes into the blast furnace
until the rail comes out ready for shipment the material has never
been cooled. . .
The Chairman. That is true of these plates out of which tin is
made ?
Mr. Roberts. No; that is not an absolutely contmuous process,
such as is involved in the making of a rail, when you get to the lighter
and more highly finished forms.
The rail represents true conservation. We save everything we can,
just as the slaughterhouses do in the case of a pig.
Mr. Gardner. These blast-furnace operations, connected with the
making of pig iron, are mostly 12-hour turns, are they, or all of them ?
Mr. Roberts. They are 12-hour turns.
Mr. Gardner. All s
Mr. Roberts. The blast-furnace operations are 12-hour turns.
Mr. Gardner. Some being 7 days and some being 6 days in the
week?
Mr. Roberts. The operation is 12-hour turns and 7 days per week?
Mr. Young. That is the blast furnace ?
Mr. Roberts. Yes; the blast furnace; but please distinguish that
from the fact that the men work 12 hours per turn and 7 days per
week. That is another matter. But the operation itself is neces-
sarily an operation containing fourteen 12-hour turns per week.
That is the operation.
Mr. Gardner. WTiich men actually work 7 days in the week for
12 hours a day ?
Mr. Roberts. Nobody; practically none. We have reduced the
system of work at the blast furnaces so that no man works more than
SIX turns per week.
Mr. Gardner. Supposing you had, instead of 2 turns of 12 hours,
3 turns of 8 hours; as far as the metallurgical situation is concerned,
as far as the operating system is concerned, it would answer as well,
would it not ?
Mr. Roberts. Perfectly, sir.
Mr. Gardner. It is merely a question of whether this work is
Mr. Roberts (interposing). Whether is is done with three turns
or done with two.
Mr. Gardner. Yes.
Mr. Roberts. Three turns in twenty-four hours are not unknown.
It is practiced in some parts of England.
Mr. Gardner. The Edgar Thompson Works had it at one time,
did they not ?
Mr. Roberts. I am not clear about that. I know the Carnegie
Works at one time had an eight-hour system in part of their establish-
ment, but that was many years ago.
UNITED STATES STEEL COEPOHATION. 3273
Mr. Gardner. They had it at the Edgar Thompson Works, I am
pretty sure.
The Chairman. They had it at Homestead, I am sure.
Mr. Gardner. I do not think so, Mr. Chairman; although you
may be right.
Mr. Young. When does this 12-hour turn begin, for the day shift,
and when does it end ?
Mr. Roberts. I think it is usually from 6 to 6.
Mr. YomsTG. From 6 o'clock to 6 o'clock? And during that time
the men eat their dinner ?
Mr. Egberts. Yes. There is no regular hour for dinner. For
instance, with the 10-hour laborers, some establishments take half an
hour, some three-quarters of an hour, and some an hour, at the blow-
ing of a whistle.
Mr. Young. Yes.
Mr. Gardner. But these men take their meals when they see fit.
Mr. Young. And the night shift comes at 6 o'clock at night ?
Mr. Roberts. Yes; and then the next shift comes on, and then the
next. It is a continuous operation.
Mr. Gardner. I do not fail to realize entirely the difference be-
tween a steady occupation, continuing for hours, and an unsteady
occupation. I am not so unreasonable as not to recognize that there
is a very great difference. But here is a statement quoted from
Capt. Jones, whom you knew, I suppose ?
Mr. Roberts. I knew him quite well.
Mr. Gardner. This is taken from the bridge history of the Carnegie
Steel Corporation, but the evidence appears to be documentary, so
that it does not depend upon his statement. (Reading.)
In Oapt. Jones's statement of the causes of the great output of the Edgar Thompson's
Works, quoted in a previous chapter, he says:
"I soon discovered it was entirely out of the question to expect human flesh and
blood to labor incessantly for 12 hours, and therefore it was decided to put on three
turns, reducing the hours of labor to 8."
He adds that —
"This proves also to be of immense advantage to both the company and the workmen,
the latter now earning more in 8 hours than they formerly did in 12 hours, while the
men can work harder constantly for 8 hours, havii^ 16 hours for rest."
That is the end of the quotation, and that is all I want to call your
attention to, as I am aware^hat there is a difference of opinion as to
Mr. Bridge's capacity and bias in writing his book.
Mr. Roberts. If you will kindlv let me say a word in regard to
that «
Mr. Gardner. I would like your comment on that.
Mr. Roberts. Capt. Jones lost his life, I think, before the year
1890; possibly earlier than that; so that that statement is somewhat
ancient history.
Mr. Gardner. That is true.
Mr. Roberts. The conditions in steel works at that time would
probably warrant an 8-hour turn, as compared to a 12-houf turn to-
day. It was before the introduction of electricity and was at a time
when men had pretty hard positions to fill.
For instance, there is no operation to-day in a steel industry that is
comparable with the work of an iron puddler in the past. At the
time of which Capt. Jones speaks the mills were equipped so that a
man, by the time he had completed an S-hour turn, had done about
3274 UNITED STATES STEEL COBPOKATION.
all the manual labor that he could do; just as I say to-day, you will
find, in the same works, 8-hour, 9-hour, 10-hour and 12-hour men
working in perfect harmony together, due to the laboriousness or the
comparative laboriousness of their operations. For mstance, a man
to-day forgmg car axles under the hammer, by the time he handles axles
for 8 hours it is as much as any man can do, and his turn is finished.
Another man works 9, another man 10 hours in various occu-
pations. Then you come to these 12-hour men, doing the least
continuous occupations of all, and whose work is largely a matter
of operating push buttons and electric levers.
That is what made possible the 12-hour day. It was the diminu-
tion of the laboriousness of labor.
At the time of which Capt. Jones speaks, however, 8 hours was
quite equivalent to 12 hours at the present day.
Mr. Gardner. You mean that the 8-hour work was a great deal
more then than 8 hours work would be now in the blast furnaces ?
It was a great deal more laborious ?
Mr. Roberts. That refers to 'your steel works; to your finishing
departments.
Mr. Gardner. Yes; generally.
Mr. Roberts. The operations of the blast furnace 20 years ago,
where they had 12-hour turns, were far more laborious than the
operations of to-day. It was all hand labor. For instance, men'
filled the cars with material, they were taken to the top of the furnace
on a hoist, men pushed them into the top of the furnace, and the pig
iron was tapped into the bed, and as soon as it was cool, almost
red-hot, men went into that bed and picked the red-hot pigs up bv
hand, too, and carried them out and deposited them outside. All
that work is now done by machinery. Your raw material is handled
electrically. No men are at the top of the furnace to push it in.
There are no men carrying red-hot pig iron, because it is either run
out in a liquid condition and put into the mixer, or else it is put into
a casting machine and mechanically carried off and dumped on to
cars.
Mr. Gardner. There are two questions involved in this matter of
the 12-hour day. One of them is whether it is too laborious for the
men. That is to say whether, by the time a man is 40 or 45 years
old, he is like a squeezed sponge, which causes an economic loss to
the community, or course.
Then, there is this other question, which has been raised by the
chairman": That is, whether 12 hours on duty is too much to take
out of a man's day, even if he does not work one hour of it. Do you
see what I mean? Those are two entirely different questions^the
question of bringing up his children, and so on, and the question of
whether he is exhausting himself as a human wage earner, and per-
haps exhausting the race in the future.
The question of whether 12 hours is too much to take out of any
man's day, from the point of view of his family, depends somewhat
upon whether he has a f amUy or not. What proportion of these men
working 12 hours a day are married ?
Mr. Roberts. Taken as a whole, I should say that the majority of
them are married.
]\Ii'. Gardner. The majority?
Mr. Roberts. The majority.
UJ^fllED STATES STEEL COEPOEATION. 3275
The Chairman. Do the majority of men have families, too ?
Mr. Roberts. Taken as a whole, I should say yes.
Mr. Gardner. If it paid better to have an 8-hour day, as far as
production is concerned, as some people believe, the companies of
themselves would come to an 8-hour day. But the interest of the
community is quite different.
For instance, it might pay you to work the men 10 hours a day,
and yet the man could not in a lifetime, working for you, do as much
as if he worked 8 hours all his life. In other words, he would become
a burden on the community, and yet the burden would be felt by the
community and not by you, because you would have a new and un-
exhausted man instead of an exhausted one.
The two questions I wanted to get through my mind were, first,
the question of whether the work was too laborious in the 12-hour
day; and, second, this sociological question which has been raised by
the chairman, and very properly, as to whether or not 12 hours of
duty are too much to take a man away from the rest of his life — in
other words, whether he should be separated for one-half of his life-
time from other occupations which are voluntary.
Mr. Roberts. Answering the first part of your question, Mr. Gard-
ner, which I assume refers to some statements of old age at 40"
Mr. Gardner. No; that was one of the things in my mind. That
does not seem to me altogether convincing— that old age at 40.
Mr. Roberts. I was going to say that I had some statistics and
data here which would show that the sponge at 40 had not been
squeezed very hard.
Mr. Gardner But it seems to me it is possible that, although it
might not be at 40, it might be, still, at 48 years of age. I know a
man at my age can not do as much physical work, whether I had
worked 1 hour or 10 aU my life.
Mr. Roberts. But in your line, sir, you are as capable as ever, and
in their line you will find the same thing true. I can put my finger on
a great many men that have been working 30 and 40 years in these
works, in all different departments, that are as hale and hearty as they
ever were.
I had a man come in to see me not long ago, in my office, and he
said he was 80 years old and felt j ust as fit as ever, and the only thing
that he found fault with was that he had been put upon the pension
list.
Mr. Gardner. Was that man working on the 12-hour day?
Mr. Roberts. He had been on the 12-hour day all his life. I had
known him personally for 25 years.
Mr. Gardner. You admit that he is probably an exception?
Mr. Roberts. That man was a heater, and he had worKed in one
of the most severe, if not the most severe, occupation there is — in
front of the heating furnace aU his life.
Mr. Reed. Would the committee be interested in having these
statements that Mr. Robetrs has prepared ?
Mr. Gardner. I think it would all be very interesting.
I have only one preconceived idea on the subject, and that is that
when you find a 12-hour day existing, seven days in v week, there is a
presumption which requires very substantial explanation.
Mr. Reed. Exactly; I do not think it can be rebutted by single
instances.
3276 UNITED STATES STEEL COEPOBATION.
Mr. Gardxer. I do not, either. , ^ ^- ^- „i,;„v,
]\Ir. Reed. And so Mr. Roberts has a collection of statistics wlucJi
will give you the information. u i „ iu„
Mr. Gakdver. Any material you place before us would have the
same study from me that Air. Neill's report will receive, as soon as it
is available in full shape.
Mr. Sterling. Is this data in prmted form (
Mr. Reed. No; it is something that Mr. Roberts has prepared for
the committee to-day. . , ,. .
Mr. Roberts. These are statistics givmg the actual condition
existing to-day in all of the subsidiary compames of the United totates
Steel Corporation in regard to the conditions and hours x)t labor.
It is aU down in black and white, and I shaU be very glad to give it
to the committee.
The Chairman. If you please.
Mr. Steeling. Does it give the wages of the workmen i
Mr. Roberts. Yes; it gives the wages of the workmen and the
number of hours in which they have been occupied in the week.
The Chairman. Does it give the nationalities of the workmen ?
Mr. Roberts. I have some statistics on nationalities in general; yes.
Mr. Gardner. Does it give the number of children 1
Mr. Roberts. No.
Mr. Gardner. Does it show whetlier these workmen are married
or single ? .
Mr. Roberts. I think I have here that information for some of the
works.
The Chairman. I would suggest, Mr. Gardner, instead of dumping
these statistics in a mass, that Mr. Roberts take those statistics, one
table or statement at a time; for instance, one table showing the
wage of the workmen, and let us know to what plants that applies,
and for what time, and let us ask him about the table, and become
thoroughly advised in regard to that one before going to the next;
and then take up the next table, and so on.
Mr. Young. Do not the tables speak for themselves ?
Mr. Gardner. I should like to have a chance to study them.
Mr. Roberts. I shall be very glad to present some typical ones,
if it meets your approval, and read them, and then if there are any
questions which you may want to ask me, you could probably do it
better.
Mr. Gardner. I am willing to start it that way; but unless other
people's minds work a great deal quicker than mine it will not be
nearly so satisfactory as to have the tables put in and give us an
opportunity to study them and hear this witness at some other time
on them.
Mr. Roberts. I can put them in. There are some figures that
will speak for themselves without any explanation. But I am
perfectly agreeable to either plan that the committee prefers.
]Mr. Gardner. It is all interesting to me. The onfy point that I
am suggesting is that I know I can not digest a statement as it is laid
before me. I should prefer to have time to study the statements
before asking questions in regard to them.
Mr. Young. They will all be printed.
Mr. Roberts. As I said before you came in, 'Mr. Gardner, this 12-
hour question is pretty broad. It extends not only to the steel in-
UNITED STATES STEEL COEPOEATIOW. 3277
dustry, but to agriculture and various other occupations as well.
We do know that it has existed in the steel industry for a great many
years ; that it has been the standard ever since the days of iron.
Mr. Gaednee. I do not want to get iato an argument with you,
but of course you know that the agricultural employment is scarcely
a fair comparison, because of the fact that it is hmited so much by
the sun's rising and setting and by the seasons of the year, and because
agriculture is not a continuous operation like the work in the steel
business.
Mr. RoBEETS. But then when you go into those considerations it
is to be remembered that the cows have to be milked, whether it is
dark or whether the sun is shining.
The Chaieman. The cows in my country do not give milk all day.
pLaughter.]
Mr. RoBEETS. The difficulty I have found is in getting men to milk
my cows all the year.
Mr. Danfoeth. I move, Mr. Chairman, that we have one of these
tables presented before us, and then we can tell whether we can go
on with the others or not. We can ask questions on one of the
statements.
The Chaieman. All right.
Mr. Robeets. Gentlemen, I have this subdivided. I do not know
whether I shall take up too much of your time, but if I follow it
through in proper sequence I would commence with the mining
industry first.
Transportation I did not intend to touch upon, because it is regu-
lated by Government enactments, and it is subject to the same con-
ditions as those prevaihng in regard to all other common carriers, so
that it does not seem to be necessary to touch on transportation.
I had intended to touch on the conditions existing in the mining
industry and on the manufacturing end, including the blast furnaces
and steel works.
If agreeable to the committee I would commence with the mining
industry.
I have here a letter from the secretary of Mr. Thomas Lynch,
president of the H. C. Frick Coke Co., under date of February 8, 1912,
addressed to Mr. C. L. Close, committee of safety, United States Steel
Corporation, reading* as follows :
H. C. Frick Coke Co.,
Pittsburgh, Pa., February 8, 1912.
Dear Sir: Your telegram of the 7th to Preeident Lynch regarding 6-day-a-week
rule, etc., is received in his absence. We, of course, are unable to say definitely
whether or not Mr. Lynch would modify his letter to you under date of October 21
last, but from present conditions think he would not, as the hours of labor have not
been changed and the number of day men in the region, working 12-hour shift, six
days a week, is, approximately, the same as at the time of the president's letter.
Detailed statement shows this to be 2.1 per cent of the total employees on the roll.
Your telegram will be referred to Mr. Lynch on his return to the office Wednesday
of next week, and should he desire any change made you will be so advised .
Yours, very truly,
H. Short,
Secretary to President.
Mr. C. L. Close,
Committee of Safety Urdied Stales Steel Corporation,
11 Broadway, New York, N. Y.
3278 UNITED STATES STEEL COKPOBATION.
That refers" to the ConnellsvUle mining operations— coal ^^^j^S-
That shows that the condition existmg to-day is the same as when
these reports were made.
That letter was from Mr. Lynch^ secretary. e»nrAf«r^
Next I have a report from Mr. Lynch to Mr. C h. Close secretary
comSttee of safety, United States Steel Corporation, dated October
21, 1911, as follows ^ r, n
' H. C. Feick Coke Co.,
PitUhurgh, Pa., October 21, 1911.
Dfar Sir- Reulving to vour inquiry of 20th instant, at no time did we have more
than t per cent ooriorki^gtunis of 12 hours each, or working seven days per week
They arf made up offiremln, machinists, stationary and hoistmg engmeers, and
^^Th:;l1?st±ued the seven days a week entirely except some monthly ^^^^^^^
such as chief machmist, etc., who are on duty more or less of the tmie seven days a
week but manv davs have nothing on particular to do.
ThCTefore we have no man wording by the day who is on duty more than six con-
secuti^■e days, and we have made no reduction and do not expect to make any reduc-
inlthe hours of the men who have been workmg 12-hour turns. , ■ , • y,„ „ ;.i,
^Recently we sent Mr. Farrell a .statement covering this, copy of which is herewith
Mr. 0. L. Close,
Secretary Committee of Safety, New lork.
The Chairman. That has to do with the mining business?
Mr. Roberts. That has to do with the coal mining; yes.
The Chairman. You spoke of six consecutive days. Do you stop
your mining operations on Sunday, or do you simply work your men
six days out of the week ?
► Mr. Roberts. Six days out of the week.
^ The Chairman. The mining goes on on Sunday as well as any
other day ?
Mr. Roberts. Xo, sir. There is no seven-day week.
The Chairman. That is what I wanted to understand.
Mr. Roberts. The next paper I have is a letter from Thomas
Lynch, president of the H. C. Frick Coal Co., dated September 16,
1911, and addressed to J. A. Farrell, president United States Steel
Corporation, reading as follows:
H. C. Feick Coke Co.,
Pittsburgh, Pa., September 16, 1911.
Dear Sir: Replying to j^our inquiry of the Slst ultimo, relative to hours of labor,
etc., of employees at our mines and coke ovens: Beg to advise that only about 2 per
cent of the employees of our coal mines and coke works work 12-hour8 turns, and is
limited to firemen pumpers, hoisting and haulage .engineers, mechanics, and attend-
ants employed in taking care of machinery in the power houses.
The firemen average about 10 hours actual work, leaving 2 of the hours for rest.
On the day turn this rest period comes toward evening, as their busiest time is about
noon.
Pumpers average about six hours actual work, leaving four hours for rest and meals.
Engineers at shafts average nine hours actual work. Engineers at slopes and drifts
average eight hours actual work.
Machinists and attendants in power houses average eight hours actual work.
The day men employed inside average lOJ hours from the time they enter the mine
until they return. This includes haulage men, horseback men, timber men, fire
bosses, brattice men, trappers, and laborers. On the average, these men consume
about one hour going to and from their work, 30 minutes for lunch and an average of
about one-half hour lost motion, owing to contingencies that arise during the day,
which leaves an average of eight and one-half hours actual work for all the above-
named men.
^ UlNil'EU bTATEb b'i'EEL COKPORATKJ.N. 3279
The miners average about llj hours from the time they enter the mine until they
return, from which we deduct one hour going to and from working place. It is diffi-
cult to figure the lost motion in case of the miner — ^how much time they have to wait
on wagons and other contingencies, or the time they take for lunch, as they usually
eat their lunch during these periods of loss motion, or are idle from some other cause —
hut I think it can safely be put at one hour, leaving an average of nine and one-fourth
hours actual working time for the miners. You understand, of course, the miners do
not work by the day; they work by the piece, so much per wagon.
The coke drawers likewise work by the piece, so much per oven drawn, and average
about eight and one-half hours at their work, of which about one-half hour is con-
sumed for lunch and rest.
Drivers, capers, and some other classes of men employed in the mines and on the
tipples are paid for "full run" ; full run means charging the ovens, and the time of the
full run is fixed by our scale at nine hours. If these men average more than nine
hours they are paid extra, but nothing is deducted from their pay no matter how much
less than nine hours they may finish. In normal times the actual working hours of
these men do not exceed eight hours.
Ten hours constitute a day for all outside men. Nine hours is a regular day for
inside day men, but, as is shown by the statement above, they do not actually work
more than eight and one-halt hours.
There is but little difference in the practice in the 'Pocahontas region from the
Connellsville, except that 10 hours constitute a day's work for both in and outside
men, in the Pocahontas region, but the inside day men and the miners as well spend
less time in the mines than they do in the Connellsville region, mainly because the
mines are smaller and it takes less time to get to and from their working places than it
does in the larger mines in Connellsville. The miners also go in later in the Poca-
hontas region and do not average more than nine hours from the time they enter the
mine until they return, about eight of which are actual work.
We have tried to give you this information as brief and concisely as possible, and
if we have not covered all the points, or you would rather have it more in detail,
kindly advise, and we will be pleased to furnish it.
Very truly yours,
Thomas Lynch, President.
J. A. Fahrbll,
President United States Steel Corporation,
71 Broadway, New York, N. Y.
Mr. Gardner. Before you begin the next one, I want that clear in
my mind.
In this allowance of 11 J hours, you said you deduct 1 hour going
to and from the working place. You meant getting to their work,
from the time they enter tne mines until they go to the place where
they work in the mine ?
Mr. Roberts. Exactly; that is right.
' Mr. Gardner. Not from their homes to the mouth of the mine, but
from the mouth of the mine to the place where they are to work ?
Mr. Roberts. Yes; from the mouth of the mine until they reach
their places of working.
Mr. Gardner. I understand.
Mr. Roberts. Under date of August 9, 1911, Mr. Thomas Lynch,
president of the H. C. Frick Coke Co., writes to Mr. J. A. Farrell,
president of the United States Steel Corporation, as follows :
H. 0. Feiok Coke Co.,
Pittsburgh, Pa., August 9, 1911.
Dear Sm: Eeplying to your inquiry of the 5th instant: The comparative number of
employed of various nationalities of our companies in the Connellsville region and
Pocahontas region is, approximately, as follows:
Connellsville region. ^ Per cent.
.American 21
Slavish 30
Polish 164
3280 UNITED STATES a^aaij »ju±t±-UHAXiUJN .
Per cent.
Irish ■ ' " -,,
English, Scotch, Welsh ^*
Bohemian and French , ,
Russian ^f
German „'
Italian ^
Austrian i
Horwat f
Magyar ^,
Croatian ^*
Hungarian °,
Colored *
100
That is the total percentage of nationaUties in the Connellsyijile
rerion.
The Chairman. Is the total number of employees given there ?
Mr. Roberts. It do^s not give it. It shows the percentage. I do
not know whether that is shown further along or not. I have it on
another sheet, which I shall submit later on.
The Chairman. All right.
Mr. Roberts (continuing reading) :
Pocahontas region. Percent.
American 20
Slavish 7
Polish 7
Russian and Greek li
German ij
Italian 14
Hungarian 24
Roumanian ' . . . . 5
Colored 20
100
Mr. Young. I understood you to say, "colored 20 per cent"?
Mr. Roberts. Yes. [Reading:]
Colored, 20 per cent; American, 20 per cent.
Showing, evidently, that American means white. In the other
case, under the Connellsville region, the percentages were:
Ameiican, 21 per cent; colored one-half of 1 per cent.
In the Pocahontas region the percentage is:
American, 20 per cent; colored, 20 per cent.
The Chairman. That is in West Virginia ?
Mr. Roberts. The Pocahontas region is ia West Virginia; yes.
Prior to 1879 the operations in the Connellsville region were comparatively smaji, and
improvements of all kinds, especially tenement houses, very cheap and crude. The
houses were usually built on posts, containing three small rooms, some of them not
plastered. There were many blocks of this character for four, six, and even eight
families, and there was a type of shanty, as it was called, in which single men lived
and did their own cooking and housekeeping. No attempt was made to establish and
maintain streets or gardens, and coke ashes were spread around to dry up the inud;
there were no trees or vegetation, and the black surface, together with the smoke in
the atmosphere from the coke ovens, made rather squalid-looking villages.
In that connection I would say that I have some photographs here
which I would like to submit for the inspection of the committee.
The Chairman. Certainly.
-ijTT^T:::i7-rT!rrKT-STBEL COEPOEATION. 3281
Mr. Roberts (producing photograplis) . Those represent the Con-
nellsville region.
The Chairman. We have no appropriation for printing the photo-
graphs in the hearing.
Mr. Roberts. I thought it would be of interest to the committee
to look at them, for the time being.
The Chairman. Yes. If I had the means I should be pleased to
print them in the hearings, but we can not do H.
Mr. Roberts. These photographs represent the conditions which
may be of interest to the committee at this time. They represent
conditions in the Tennessee Coal & Iron Co.'s mining camps, and
also in the Lake Superior ore region.
Mr. Sterling. As they are now ?
Mr. Gardner. Are those marked so that we can examine them at
our leisure ?
Mr. Roberts. They are all marked, sir, I beUeve.
Mr. Reed. There is a legend on each picture explaining what it is.
Mr. Roberts (continuing reading) :
The people had to depend on springs, or dug wells for their water supply, which I
might also say was tjie custom then and is now in the small villages and towns in
western Pennsylvania. ,
I would say, in that connection, that I made an inspection trip
about a year and a half ago over the Norfolk & Western Railroad, and <
it was astonishing to see the improved conditions existing at the
mines of the steel corporation as compared with those of the indi-
vidual operations.
The Chairman. The governor of West Virginia made a report,
that I shall try to get. I think I can lay my hands on it. I was
reading it the other day. This report was in regard to the conditions
in West Virginia governing the miners a few years ago, and shows
that they were simply abominable. Human life was not safe, in a
great many of them, and the governor of the State made a report of
a very startling character with reference to the economic, social, and
moral conditions existing ameng the miners of West Virginia; per-
haps the most terrible conditions in any industry on this continent.
Mr. Roberts. If you will segregate the Steel Corppration
The Chairman. I do. You have had nothing to do with it.
Mr. Roberts. I think you will find a very marked difference.
[Reading :]
Up to this time fully 75 per cent of all the employees in the mines and at the
coke ovens were native Americans, about 20 per cent Irish, Scotch, and English,
and 5 per cent Germans.
The Chairman. When I spoke, a moment ago, about human life
not being safe in a great many of those mines, I meant the lives of
the labor organizers at that time were unsafe. That is what I
intended to say.
Mr. Roberts. That was up to 1879. Seventy-five per cent of all
the employees in the mines and at the coke ovens, were native
Americans, about 20 per cent Irish, Scotch, and English, and 5 per
cent Germans. [Continuing reading:]
The boom of 1879 and 1880 caused a very substantial expansion in the coke business
and the number of ovens in the region trebled within a period of about 4 years.
About 1878, H. C. Frick & Co., the predecessor of this company, commenced to
branch out. H. 0. Frick & Co. did not build any new plants; it bought up old ones
and added to them.
3282 uNriKi> statkb siKicr. (;()iii'()iu'rioN.
II. (;. Kr»:k Cok.! Co. wa.H OTKauh,A in IKK^ and il <li.l not biiil.l n.<.rn I'""' '•«"', "'
il.rw: now planU. unl.il afl.<T IliOO. ItrouliuiwA It.., |H,licy of it.K pr.,.l(,<'.v,.or, ol l.iiyiiiK
'''TH^'Iriy a« IHHO li.C Kri'k A Co. ,o,.,.n..,nr,..l (., I.ur clowo 1.),. «l..u,l,i.n '"''l [■'-'-"•r
,ili«l.T..i, larger a,,-/ ,nor.. ronv-nionlly arraoK-'l , I'lf""'! ^' ""'" ,^'^"", ' ' '. ' i
t'arrl<.f,,.; Llw, put waU.r ,r,l,o tho vMI,-4;.-h, lo'aM.iK l.ydrai.t^ alo„K H,., nlr .<,l^, ono for
cv.try Ihr.:.; or four farr.ili.«, in la<l, ,w<: ha-l wator in hoii,., .,f oi,r oHMinK vil aK<'8 I'"'""'
Gr<;..n..hNrt^lhr.ro,in(.ywat.olW<-.ln,or.Ja.,-l,l.a.lawat.T«yHl.j.o I h.,n. t,a« bo m no
radical rhal.j.o in l.h<: lyp« of hoo^-- „p l.o Ihi.n .lay, ..x.-,.,,l vanaMmi n, h,/,.| and dniail
of arraniromwit l.o mako l.hor.. ioor<, cor, voni.:nl, an.l U, hmI..-.I,iI.iiI.<'. Klat.o for kIhiikIo roof,
but, the Hl.rooU fiavo ho<,n roailo wi-l.T, U,o (rar.lco.H lar^or, walcr pol. ,nl,o numy^ of I.I, o
l.o,i.H.«, Ktrool. at,r| alloyH kopt. in l.ol.lor rondit.ion. ('ul.l.or,, l„.ill, alonf? I. ,n pn.,cii.a
Htrw.lHand in w-rno . a-.>: ondorj'roiind ".-^wi-r.: ir,.^.lall<-(l. I l.t.u,k I car, wifoly cay l.fial.
our nc-w villa«(a aro cL^an, .aoil.ary, and well kcpl.. Tl,(, hoUHCH ar(^ airnoHl. onlircly
frdf/K;; wjfoc two or three plant« havo houk; brick bone,.
Afjout tb<, r.aino tirnn tlio improv',ir,c„t wa« ina<lc in Ibo rr/.,: at,d character of houm'«,
the. non-Kn(?li.-h-Mp<akinK forei^'o workmen aj.peared lo the reijion^ Of coiirijo, they
brought with them their nativr: cuftoruH; for ,„Mlance, woidrl take their wobJi down to
tbestrcaio, ha/1 the barcHt r,eceB',itie^ ir, the wav of furn,t,,re, and of I he roUKb<«t kind,
Farnilie-, and hoarder^ ate out of a corninor, dinh and K, 10, ai,d a-, n,i,.ny an 14 boarder-,
crowded itiU, one of l.br-e four rr,orn ho, ,?:<;», In Hiin,n,cr time they roovc^d their bed',
out on the porche-, or into the yards and Kh,(.t there. 'ri,roi,!d, tt,e influence of tho
ch,irche-, .Hchr-ol-,, and onviror,ment, KUnphuoeoled by o,ir efforl.',, all lf,i« ha>i gradu-
ally chan(?wl. Now t.hcy atleti,pt to a/lorr, and br-ai,lify th'ur home,',, bii.ve morn ami
better (imiitiiri , carf)Otx on the floor-, and ciirbiiuM on the wio'low;,, cr.iphopt, ones and
rniL-fical irritrument-, of varioin kind,-,, buy better ;,., id more ,nrie.| (ooil, and there, i-,
not ono overcrowded t.oii,".*, n(,W where Itiere W(,re If) fifleen yiar,-, a^o.
We encfiiiraj'e the people lo Iceep cbi' ken.^, rlnckH, t<ee ;e, oi,'-,, and cowb Ttiepeni
arid hoii-e.i for lh<^',e are oft.<:n built by thi, tenanljt lluun^clve-i and are rH'CCMirily of
varioii-, f,iz<« and f,haneM and detract a ((reat deal frorri I he apficarance of the. villrt!.o,
af,d make it more difhcnit to keeii then clean and ^'anilary,
'I'here are Home of tho tyfiC'i ol hoii.He.i hrft described left yet at forrio of the ohicr
plant*- plaiilf, ttiat havciuicf, a-.hort. life thai wewould rif.t be ju.'dificd in learinf t,h(,iii
down and building nr:W fines, but IhcMO plant-; are ('oinc out c/r-ry /i!,,r, and at, thow,
which wo boiitdit y(,ar-, a(fO, arid to which we havo added coal and I'iveu |orii';er life, Wfl
havebi,en r(;placirij,Mheold t.ypeof hou."e with new one ■, removinj' the, a4io« from !,ro,ir,d
the f.flrwn Hit**', filling up with foi^l .-oil, Wi the people, can c,i|lii/ate J^ardfJTW, l'"or a
number of yi-jir^ iia-t wo have tje<n mcourajfinff the peo[ile to make ifardMiW atid rai.ie
tl,(:ir own vet'etAoh-j, and off<T prize-, for the I)e.Ht farden-, About Id year-, ii.f^o, at the.
princi[;al operalioni, weHlarted flowr,r plotjt in lorne prorninfmt pla.'-es,, iinally near the
ofhce, ;i^, 'ort of an object Icvon lo leach the people how lo f/riiw flower, and tho kind
of (I'rwfirs to ^frow. Then wc differed (.reifiinrno lo itie women for the r,ic(,Ht flowern.
This Vftara va«t. majority of tf,e tenarit.'i in our hoiiHOn havo their own (i;ardorin and a Iarp[e
nornbor of tlio women have a vrjry f^rwlilatde di,-,play of flowr^rM
Ai t/) r:ondition-, in o,ir mine-, and workifif condition,', pionerally about our fdanl,H, f
think it in conceyle/1 that they are not f;iirpav,i,d anywfiero, Tho f^reatct of care ic
hx'-.r' I'lil at all lim<-<< t/) mako tho rnine^ an f,ea.llf,y and "afe, tw it i,", po-'.^ildo to make
'li-.ifi iTie only '.nlu i-m f have e.ver hc^rd ol our f:ornpany on thi-, 'icore waf( Ui the
effect that wo < ' <, t to the f,(her ix I remo and spent t/>o much rri'rtKry for I ho [)rol.<:f tion
of the liv(:^ and health rrf the employt-e,"..
In thin connection j^-rhajiH it mi(i;ht not bo out of placr, f/, a/ld that tho charjre that
u«ed tf> be frofj uontly made that thow; thri-iirn hthdrtfrn d rf.ve ruit the nati vo A moricand
and workwl for !of« was;ft«! than tho native American in witirely without foundation,
!v> Iat an the coke resdon iff coTicernod. As a rnatt.<:r of far't thifi company alone at the
present time ha* more native Americans on ito pay rolls than v/ero in the entire ('on-
noll.Tvillo r«»ion at the time the foreis^oCTo firirt cArno in, aiid tfiere never ha* been a
time that the ff)roit'ner» were [/aid le«t wac'r,s than natives for frirnilar work. The
■ruth of the mnl.UiT is ificre wa« n(,t suffiMont native labor to mjpply the dfjtnand
'.r'f-iU:rl by the rapid i-.xjfAnKiom in tho f:oko bnsineM, and there wa« no diwpofdtimi on
the part of the corrifrauy, or any other operator, (so far ax f know, to difvTiminat« M U>
nationality Tlie yonuv men froro the farms, and from tfie t<'>Wfis do not tak« to coal
minins^ at ar, y vtu/i^^. fvoplo/rnent as(enti», were 3<,nt f;iit to s'et laf)Or, and the cla«»
wa» fv-zjiri:'! that wa« at that time and h;is. wnce been comini< into this country. A*
far a=, f know there never wa« a man im(>')rt/^r^ frorri the olrl country tr) ttie CtrnneV^
ville rf^sdon, and my opinion at the prej^ent tirno in about half ol thet-c. r,r,o-l';n(<li»1l
'fjeakinsf foreii'r.er" if: oi r employ are nrrw natiiralis'.ed A mrricar, ' itiz'nii.
UNITED STATES STEEL COBPOBATION. 3283
Mr. Steeling. Who wrote that letter ?
Mr. Roberts. It was wi'itten by Mr. Thomas Lynch, president of
the Frick Coke Co., to Mr. Farrell, president of "the United States
Steel Corporation.
The Chairman. Do the United Mine Workers of America have anj-
organization in this company ?
Mr. Roberts. I can not answer you that positively. I think they
have.
Mr. Sterling. How long is the statement on the steel workers ?
Mr. Roberts. Without reading it, I would like to submit, for the
record, a statement in regiird to the ore mining. I do not think it is
necessary to take up the time of the committee to read it. Then I
wUl come to the manufacturing end.
The Chairman. I believe you have a statement somewhere there
as to the number of men employed in this region. That would be
very vital in connection with what you have said. I would like also
a statement from you as to the average wage paid.
The statement as to the conditions and improved houses and grow-
ing flowers, and all that sort of thing, is very interesting, but the vital
question is how much money these men get a day, and how many
of them there are who receive it.
Mr. Reed. That is not in accordance with the sentiments so beau-
tifully expressed by the chairman a Uttle while ago.
The Chairman. I do not mean to say that what he has set forth
there is not creditable. I am not of the opinion that "the flowers
that bloom in the spring have nothing to do -with the case." I ap-
prove of all that has been done with reference to having these people
grow flowers around their homes. I think, possibly, the fellow work-
ing for a dollar a day has just as much right to enjoy, and is just as
capable of enjoying, flowers as you or I are; and I approve of it. I
do not go back one particle on that.
Mr. Gardner. Has the rent increased that the operatives pay for
these improved houses?
Mr. Roberts. I can not answer what the rent is. It varies with the
size of the house, and- they vary in size. I have no record of the
rents here.
Mr. Gardner. Have we, anywhere in our evidence thus far sub-
mitted to us, anything on that question?
Mr. Roberts. There is a letter here from the Lake Superior mining
region which gives some data on the subject of rents; but not verj
fully. It is easily obtained for you. If you vould like to have it
submitted, I will have it put into the record.
Mr. Gardner. I do not want to load up the record with too much
matter.
The Chairman. I think that would be very vital, Mr. Gardner.
Mr. Gardner. I think it would be interesting.
Mr. Reed. There is nothing in the record so far in regard to that.
Mr. Young. I would like very much to hear that report on the ore
mining.
Mr. Roberts. You would like to have that ?
The Chairman. I would like to get all you have in the way of fig-
ures. I am looking for the vital statistics. I would like to get a
statement of the number of these miners and the wage paid.
3284 UNITED STATES STEEL COEPOEATIOlSr.
Ish'. Roberts. I have the number of miners in the H. C. Frick
Coke Co.— 22,640. . , , , ^ u u a- , ■ ,i
The Chairman. Does that mclude the Connellsville district «
Mr Roberts. Four hundred and seventy-five of these, or 2.1 per
cent work 12 hours per da3^ No da.y laborer is worked seven days
per week A few monthly men, such as chief machinists, sometimes
work seven days per week. This is snnply from a summary of the
statistics that I have already given here. I have that now, for all
the other companies.
The Chairman. We will take our recess at this pomt.
A'^Tiereupon, at 1 o'clock p. m., the committee took a recess until
2.30 o'clocK, p. m.
after RECESS.
The committee resumed its session at 2.30 o'clock p. m.
STATEMENT OF PEECIVAL ROBERTS, JR.— Continued.
Mr. Bartlett. Mr. Roberts, you may continue, if you please.
Mr. Danforth. I believe you are going to take up, next, concerning
the manufacturing end of it ?
Mr. Roberts. Yes. I had just finished giving a r6sum6 of condi-
tions existing in coal mming operations. I think probably I have a
summary here which will answer the purpose and not weary the com-
mittee. If there are any questions which arise, I have here the full
■ statistics from which this statement was made up, and if it is agree-
able to the committee, I wLU put them all in evidence.
Mr. Bartlett. A statement containing what ?
Mr. Roberts. I have here a summary of the conditions, the labor
conditions existing to-day in each of the subsidiary companies of the
steel corporation, and I have here the detailed data from which that
summary is prepared.
Mr. Bartlett. You can state, in any way you desire, or the com-
mittee desires, the results of that summary, and then put the details
in the record, without reading them.
Mr. Roberts. That is my purpose, if it meets with your approval.
Mr. Bartlett. You can proceed and give the results you have
arrived at, your conclusions, and furnish to the stenographer the de-
tails upon which you base that conclusion or those conclusions.
Mr. Roberts. 1 have given the details in regard to coal mining.
It was suggestetl, before we adjourned this morning — I think Ik&.
Young asked to hear some of the details in regard to ore mining.
Mr. Danforth. Did he ask to hear it, or simpUy to have it put in
the record ?
Mr. Roberts. I will not weary the committee with detailing it, and
if it is agreeable I will submit it for incorporation in the record.
Mr. Bartlett. You can exercise your own pleasure.
Mr. Roberts. And you can exercise your judgment, if you wish it
to be amplified. It will take but a few minutes to read it.
Mr. Bartlett. Go ahead.
Mr. Roberts (Reading):
H. C. Frick Coke Co. : 22,640 average employees. 475, or 2.1 per cent, work 12 hours
per day; such as machinsts, pump men, engineers, firemen, etc. No day laborers
working seven days per week.
UNITED STATES STEEL COEPORATION. 3285
Mr. Baetlett. You say that no day laborers work on Sundays ?
Mr. Roberts. No miners or laborers work more than six days per
week.
Mr. Baetlett. Those that do work seven days are what class of
laborers ?
Mr. Roberts. A few monthly men, such as chief machinists, who
sometimes work seven days per week.
I understand, from the data, that that means in case of break-
downs or things of that kind; they do sometimes have to work on the
seventh day.
Mr. Baetlett. I see. Does it happen very often ?
Mr. Roberts. It is not a regular practice ; it is simply an emer-
gency. [Reading] :
Lorain Steel Co. : 1,456 average employees; 72, or 5 per cent, work 12 houre per day .
No employees workiiig seven days per week.
American Sheet & Tin Plate Co.: 20,221 average employees; 2,614, or 12.9 per cent,
work 12 hours per day. 17.3 per cent work 8 hours. Not more than 2 per cent of the
total work 7 days per week. They consist of watchmen, water tenders, etc., and are
always granted a day oft on request.
Universal Portland Cement Co. : 2,550 avera|;e employees; 892, or 35 per cent, work
12 hours per day. About 80 per cent of force is off on Sundays. The majority of the
men working on Sundays on account of the continuous operations are compelled to take
a day oft during the week.
Oliver Iron Mining Co. : 13,390 average employees; 1,138, or 8^ per cent, work 12
hours per day; consisting of firemen and pumpmen. Begular working day for other
men is 10 hours, except wet places in mines where an 8-hour shift is in force. Firemen
and pumpmen are the only men that work 7 days per week.
American Bridge Co.: 11,677 average men employed; 583, or not over 5 per cent,
work 12 hours per day. No 7-day labor, except watchmen, who are always granted
a day oft upon request. The 12-hour men are usually on nights and work but 5
nights per week, having Saturday and Sunday nights off.
I might say, in regard to that, that those night turns of 12 hours
each, 5 nights per week, are very popular with the men. They
have all day Saturday, all day Sunday, Sunday night and Monday
daytime to themselves. They make 60 hours in 5 nights.
Tennessee Coal, Iron & Railroad Co.: 12,656 average employees; 2,898, or 22.9 per
cent, work 12 hours per day. Seven-day labor has been cut out entirely, except 1
blast furnace, where about 22 per cent of the men work 7 days. Efforts are still
being furthered with the end in view of entirely eliminating it. Investigation at this
plant shows that these men on 12-houT turns on the average are not actively engaged
tor more than 10 hours, having rest periods during the day that sum up to a little
more than 2 hours. The time not actively engaged runs from more than half the 12
hours for some positions, to full time for, foremen, heaters, etc., according to the
position.
Positions involving heavy, constant manual labor, nervous strain or exposure to
intense heat are double-manned, so that after a short period of work the man is re-
lieved or spelled by another and thus only work half the actual running time.
American Steel & Wire Co.: 24,595 men employed; 4,919, or 20 per cent, working
12 hours per day. Have no employees at blast furnaces and steel works who work
continuously 7 days per week. Only about 65 per cent of the blast-furnace men
work 12 hours per day.
Open-hearth department, Bessemer and Blooming Mills: Starting time, 6 p. m.
Sunday and ends Saturday afternoon. Rolling mills, mechanics and laborers begin
6 a. m. Monday morning and end 6 p. m. Saturday. The majority of the producing
labor in above departments work 12 hours per day; small number work 8 hours; me-
chanics and laborers work 10 hours per day.
Common labor rates for Cleveland district, 17 cents per hour. Pittsburgh, 17J
cents per hour.
Open hearth, average daily earnings, $2.97; Bessemer, average daily earnings, $2.47;
Blooming Mills, average daily earnings, $3.01; Rolling mills, average daily earnings,
$3.69.
3286 UNITED STATES STEEL, COEPOKATION.
That is the average.
Mr. Steeling. Does that include the common laborers?
Mr. Roberts. Everything employed in the miUs.
National Tube Co.: 17,319 average men employed. 4,037, or 23.31 per cent, work-
ing 12 hours per day. Have no employees working 7 days per week. A system is in
force that compels each man to take 1 day of rest each week. No employee works
2 consecutive turns or what is called the long or change turn.
Open hearth, Bessemer and rolling mills, starting time 6p.m. Sunday; ending time
from 3 to 4:30 Saturdays; 12 hours per day.
That means 12 hours per turn.
Finishing mills, National Works, McKeesport, starting time 6 p. m. Sunday; ending
time, 4.30 p. m. Saturday; 10 hours per day. All other flnishmg mills start 6.15 to
7 a. m. Monday and end from 11.40 a. m. to 4=30 p. m. Saturdays; 10 hours per day.
Mr. Baetlett, 1 1 .40 a. m. Saturday ? Do you mean by that that
is a half holiday ?
Mr. Roberts. Yes. It is the practice of the mills there to cease
operations by noon on Saturdaj', so that the men get a half holiday
on Saturday.
Common labor rate. Wheeling, 17 cents per hour; common labor rate, Chicago, 17
cents per hour; common labor rate, Pittsburgh, 17^ cents per hour.
Open hearth, average daily earnings, $2.95; Bessemer, average daily earnings,
$2.80; rolling mills, average daUy earnings, $2.93; finishing mflls, average daily
earnings, $2.36.
There, you see, you get into another character of work. Each one
of these individual subsidiary companies are not comparable in their
wages and character of work, class of men, and so on, which makes
them different; also the geographical location.
Those figures show some positions slightly less than the others, due
to the fact that probably those finishing mills take a less skilled class
of labor.
Mr. Bartlett. How does the geographical situation affect it ?
Mr. Roberts. It affects the labor rate. You will find Pittsburgh
has probably the highest labor rate; some of the southern works
lower; some of the eastern works lower. You will find there is no
uniformity. It is not so you can say the Steel Corporation pays the
same rate everywhere. Each of these individual companies are what
might be termed a State entity within themselves.
Mr. Bartleti'. They are affected by local conditions ?
Mr. Roberts. Yes. It is largely, sometimes, the supply and the
demand in the labor market, like anything else.
Mr. Young. It seems to me we used to understand and read about
a good many men in the mills getting as high as ten or twelve or even
fifteen dollars a day.
Mr. Roberts. ISTot very many. Those were men who were known
as rollers, especially what was known as a guide-mill roller. A guide-
rnih roller is somewhat of a genius. That was the rolling of a small
sized, especially round shape, three-guarter inches in diameter up to,
say, li inches in diameter. They said a man was never made a guide-
mill roller; he was born one. It is due to an extreme skill in changing
temperatures, and those men made very high wages.
Mr. Steeling. Do they pay any men audi wages ?
Mr. Roberts. Yes. I think the guide-mill rollers to-day get twelve
or fifteen doUars.
UNITED STATES STEEL COEPORATION. 3287
Mr. Sterling. Going back 15 or 20 years, were there not more men
in those works that got higher wages ?
Mr. Roberts. In proportion, yes, sir. The effect of substituting
machinery for these laborious and skilled operations has been to ele-
vate the minimum wage and to depress the maximum wage. As a
whole, it has brought men nearer to an average. That is, the average
is not made up of such extremes.
Mr. Sterling. It does not require such a high degree of skill in a
man since they have the machinery ?
Mr. Roberts. No; the machinery does it. Before, not only skill,
but muscular skill and power had to be combined. Now that is elim-
inated. [Reading:]
Investigation shows that these men on the 12-hour turns on the average are not
actively engaged in work incident to their duties more than three-fourths of the time,
or nine hours out of the twelve. Men employed on extra hard work or exposed to
intense heat are spelled at certain short intervals.
The next I have is the Carnegie Steel Co.:
Thirty-one thousand seven hundred and sixty-one average men employed. Seven-
teen thousand one hundred and fifty, or 54 per cent, workmg 12 hours per day.
Mr. Bartlett. Have you read the report of the Commissioner of
Labor, to the Senate resolution ?
Mr. Roberts. I have not. But, as I said this morning, I take it
that represents the steel industry as a whole.
Mr. Bartlett. I did not hear you this morning, and that is the
reason I asked.
Mr. Roberts. I claim the conditions in the Steel Corporation are
on a much higher plane than the conditions which exist in the mUls of
its competitors.
Mr. Reed. Mr. Stanley has already stated that was the conclusion
he formed, after his investigations.
Mr. Roberts. [Reading:]
A system has been devised, which differs in the various plants, to give each man one
day of rest in seven. Only 3.4 per cent of all men employed in the blast furnace and
steel works departments now work seven days per week. Further efforts are being
made to reduce this percentage.
Open hearth starting time: Seventy- two per cent of the men start work from 9 to 12
Sunday morning —
I do not understand that statement. I got that only within 24
hours. Either it is a mistake, or it is not necessary.
Mr. Bartlett. What place is that ?
Mr. Roberts. At the Carnegie MiUs, "open-hearth department, 72
per cent of the men start work from 9 to 12 Sunday morning." I
think it is 9 to 12 Sunday night, because Sunday morning is not nec-
essary. As a member of the board of directors of the steel corpora-
tion I would like to know why it is done, if it is done.
Mr. Bartlett. You can find out ?
Mr. Roberts. I can find it out. I think it is a misprint.
Mr. Reed. Will not your detail show that, Mr. Roberts ?
Mr. Roberts. I will have that looked up while I proceed.
Open hearth starting time: Seventy- two per cent of the men start work from 9 to 12
Sunday morning; 27 per cent from 3 to 6 p. m. Sunday, ending anywhere from 9 a. m.
to 6 p. m. on Saturday. "Bessemer and rolling mills start 6 p.m. Sunday and end before
6 p. m. on Saturday. Twelve hours constitute a day's work in the above departments.
Common labor rate, 17i^ cents per hour.
17042— No. 50—12 3
3288 UNITED STATES STEEL COKPOEATIOIv.
Open hearth, average daily earnings, S3.03; rolling mills, average daily earnings,
^^investigation shows that these 12-hour men are not actively engaged the entire
turn, having rest periods which sum up from three to six hours, according to the posi-
*" Tliinois Steel Co.: 17,450 average employees. 10,470, or 60 per cent, work 12
^"joiirt^wor^': Only five-tenths of 1 per cent of the men enrolled are working seven
days per week. They consist of machine shop and labor men, and work seven days
only m emergency. ,, , , i i
South wor&: About 4 per cent of the men enrolled work seven days per week.
Milwaukee works: No men working over six days per week. ^ • -. . n
Gary works: Working on plan to eliminate seven-day work. It is being put into tull
effect as rapidly as possible.
Open hearth starts 6 p. m. Sunday and ends 6 p. m. Saturday.
Bessemer starts 3 a. m. Mondav and ends 3 a. m. Sunday.
Rolling and finishing mills start 6 a. m. ilonday and end 6 a. m. bunday.
I might say, in starting a plant such as Ga,Tj, until you get a suffi-
cient number of understudies broken in, it is difficult to man it on this
plan of eUminating seven-day work entirely. But as the town grows
up around it, and labor becomes more plentiful, it is possible to do it.
]\Ir. Young. How do you manage if the mill runs continuously to
have just one day without having a considerable number of men that
are idle a good deal of the time ?
Mr. KoBEETS. They keep a surplus force which they put in the place
of these regular men, making these men retire after six days' labor.
It is not always on the seventh day that they retire.
Mr. Young. Part of them take the place of one set of men on Mon-
day, and another set of men on Tuesday 1
Mr. KoBERTS. That is right. It means keeping more men.
Mr. Young. I see.
Mr. Roberts (reading):
Twelve hours constitute a day's work, except for mechanical men, who work 10
hours, and tonnage men in Bessemer and rail mills, who work 8 hours.
Common labor rate, 17 cents per hour. Open hearths, average daily earnings, $3.02;
rolling mills, average daily earnings, $2.70.
Of the total number of employees of the Steel Corporation, those
working at the blast furnaces amount to 5.02 per cent. I think it has
been testified here that a large percentage of employees were engaged
in blast-furnace work. The total is about 11,000, and the total num-
ber of employees is some 200,000. So that the total of the blast-
furnaces employees to the whole number employed is about 5 per cent.
Mr. Sterling. This statement you have just read came from the
bookkeepers and the timekeepers of the several industries ''.
ilr. Roberts. It is made up from a report on the part of the
president of each subsidiary company to the officials of the United
States Steel Corporation, and attached to his letter are a great num-
ber of statistics. For instance, we have statistics here of two months'
operation of a blast furnace, with the individual names of the men
worldng at the blast furnace, and the number of actual days they
made; the actual time they were off, and so on. So that in this pile
of statistics I have here you have absolute data.
Mr. Steeling. Are those statistics tabulated ? Are there tables to
be submitted among those papers you have there ?
Mr. Roberts. Yes. Here is the Carnegie Steel Co.
Mr. Sterling. It seems to me those tables ought to go in right
after this statement which has been read by Mr. Roberts.
UNITED STATES STEEL CORPOKATION. 3289
The Chairman. I would like to have Mr. Roberts, as he explains
the table, turn it over to the stenographer, so that he can insert it
at that place.
Mr. Roberts. I do not want to weary the committee. I am get-
ting off of an eight-hour Jjasis, if I keep you here to-night
Mr. Danforth. How many of these men work more than 12 hours
a day?
Mr. Roberts. None.
Mr. Danforth. We have heard some talk about some working 24
hours a day, to get a day shift.
Mr. Roberts. The old-fashioned blast furnace practice was that
men worked, as I say, 12-hour turns; seven turns a week. That is,
there were 14 turns in a week, and when they made a change, which
was customary, in some cases every week, and in some cases every
two weeks, those men worked the clock around.
Mr. Danforth. How lately has that been done in any of the sub-
sidiary companies ?
Mr. Roberts. It has varied in difTerent mills. There has been a
tendency, ever since the Steel Corporation was formed, to make
changes at a good many of these subsidiary companies. Some have
put those changes into effect more rapidly than others, due, as I
said this morning, to local conditions and the conditions of their
plants; how they were balanced, and so on. But they have now, in
this final scheme, which has been worked out, no men working two
turns.
The Chairman. You mean that at the present time no man in the
Steel Corporation is allowed to work more than 12 hours under any
circumstances at any one time 1
Mr. Roberts. No, I won't say that. In emergencies and break-
downs
The Chairman (interposing). I mean except in case of fire or acci-
dent. .
Mr. Roberts. I understand that it is the practice now that there,
is no turn of over 12 hours, and that in a very short time there will
be not more than six turns per week anywhere.
The Chairman. How long has it been since one man worked more
than 12 hours in order to make these shifts from the night to the
day?
Mr. Roberts. That I can not give you.
The Chairman. That was the custom ?
Mr. Roberts. That was the custom of the blast furnaces in this
country prior to the formation of the steel corporation.
The Chairman. Did the Steel Corporation adhere to that custom
until recently ?
Mr. Roberts. They adhered to that custom for some time, in the
meantime perfecting their arrangements whereby they could dispense
with it.
Mr. Danforth. Did they adhere to that custom as lately as 1907 ?
Mr. Roberts. I could not tell you that.
The Chairman. I noticed that reference in your report.
Mr. Roberts. As I said, I would like you to be sure that it is not
universally accomplished yet. There are men that work the two
turns.
The Chairman. Now ?
3290 UNITED STATES STEEL COEPOKATION.
Mr. Egberts. In some of the furnaces; but the policy of the Steel
Corporation is to do away with that.
Tlie Chaiemax. "VMiat I want to get at is whether it was the pur-
pose of the Steel Corporation to inaugurate this reform, or whether it
•was an accomphshed fact.
Mr. KoBEETS. No. The steel corporation inaugurated that reform.
But, as I said this morning, time is an element in these changes. You
can not introduce them instantly. You may form that as your
policy, wish that as your policy.
Mr. YouxG. As I understood your statement, that reform had been
accomplished in a large number of plants, but there were some places
where it was not in there.
Mr. Reed. You could make it stronger than that, and say at 95 per
cent of the plants.
Mr. YoxTNG. Is that about right, Mr. Roberts ?
Mr. Roberts. That is correct, sir, I think.
Mr. Danforth. Did you find out about that Sunday work from
your minutes ?
Mr. Roberts. It is in a telegram I have among these papers, which
reads: "9 a. m. to 12 a. m. Sunday." I think it is a mistake.
Mr. Reed. I think it is a mistake.
Mr. YoTJNG. WUl not the accompanying papers show ?
Mr. Roberts. No, sir; that is simply a telegram.
Mr. Bartlett. Can not Mr. Roberts find out about it definitely,
and if it is wrong he can correct it; otherwise, let it stand?
Mr. Roberts. I will let it stand, unless I find it is wrong.
Mr. Gardner. I have here, from a synopsis prepared by the Com-
mission of Labor, the wages in the steel industry. This, of course,
refers to the whole industry; not to you especially. It says the most
common rate per hour for unskilled labor in the New England district
was 15 cent^. What is this now in that district ?
ilr. Roberts. In steel making we have a wire works at Worcester,
Mass.
Mr. Gardner. What is your rate for unskilled labor in the wire
works at Worcester ?
Mr. Roberts. I have not that data here. All the steel and wire
data I have here is west of Pittsburgh.
jMt. Gardner. It says the most common rate per hour for unskilled
labor in the eastern district is 13 and 14 cents.
Mr. Roberts. I might say the works of the American Bridge Co.,
near Philadelphia, the steel works there, are paying 15 cents an hour.
ilr. Gaednee. For unskilled labor ?
Mr. Robeets. For unskilled labor.
Mr. Gaednee. What is meant by the "Eastern district?"
Mr. Roberts. East of Pittsburgh.
Mr. Gaednee. Does it include the State of New York?
Mr. Robeets. It would include New York, yes; include New York,
New Jersey, and eastern Pennsylvania. I think that the line, pos-
sibly, had better be drawn at Harrisburg, rather than Pittsburgh,
because Johnstown is rather considered within the Pittsburgh district.
Mr. Gaednee. The most common rate per hour for unskilled labor
in the Pittsburgh district is 16 and 17 cents.
ilr. Roberts. The Steel Corporation's unskilled labor in the Pitts-
burgh district is 17^.
UNITED STATES STEEL, CORPOEATION. 3291
Mr. Gardner. That is uniform?
Mr. Roberts. That is a uniform rate in the Pittsburgh district.
Mr. Young. You mean a uniform average ?
Mr. Roberts. Uniform in the Steel Corporation's plants.
Mr. Young. All common labor, every man ?
Mr. Roberts. Seventeen and a hair is the minimum wage; not
every man — the minimum wage.
Mr. Young. Nobody gets less ?
Mr. Roberts. Nooody gets below that. That is the minimum
wage.
Mr. Gardner. Now, then, let us return. That is a different state- '
ment. Turn to the eastern district. I quoted from the report that
the most common rate per hour for unskilled labor coveiing the whole
trade in the eastern district is 13 and 14 cents an hour. What is
your rate ?
Mr. Roberts. Fifteen.
Mr. Gardner. In the eastern district, that would take in Phila-
delphia ?
'Mr. Roberts. I know the rate in the Bridge Co.'s plant at Phila-
delphia is 15 cents, and the rate in other works within a radius of a
few miles is from 13 to 14.
Mr. Gardner. Is the bulk of your unskilled labor at that rate?
That is, the wording says: "The most common rate for unskUled
labor."
Mr. Roberts. You must bear in mind that there is not a large
Eercentage of the men in these various works who are paid by the
our. They are paid by the ton; the 12-hour men, very largely. So
that it is only those that are paid by the hour that get the 17 cents.
Mr. Gardner. In the case you read us I noticed several times the
recurrence of the hour rate for unskilled labor — in w^at you have
just been reading to us.
Mr. Roberts. That is the basis. It is the minimum basis which
is submitted. For unskilled labor, it is on a basis of 16, 17, and 18
cents an hour.
Mr. Gardner. What I want to get at is whether the bulk of
unskilled labor is on the minimum basis or on some basis higher than
the minimum.
Mr. Roberts. I should say it varied in dijBEerent plants, but when
it is on a tonnage basis it would make better wages than the minimum
wage rate.
Mr. Gardner. Now, to go on: The most common rate per hour
for unsldlled labor iii the Great Lakes and Middle West district is 15,
16, and 17 cents.
How do your wages compare with that ?
Mr. Roberts. 17, I beheve, in Chicago.
Mr. Gardner. Is 17 your minimum wage for unskilled labor all
through the district of the Great Lakes and the Middle West ?
Mr. Roberts. I so understand.
Mr. Gardner. In the southern district it is given as 12^, 13, and
13^ cents.
How about your rates ?
Mr. Roberts. In Tennessee there are, I believe, two rates. There
is one of 13, and I think another one of 15. As I recall, I think there
3292 UNITED STATES STEEL COEPOHATIUJN .
are statistics in this pile. I know I have read that witliin the last
day or two. . . <,,
Mr. Gardner. The next sentence in the synopsis is this: It must
not be assumed, of course, that employees working at these rates and
at hours here shown can work through the mght, for employment in
the iron and steel industries is very irregular, and most irregular
among the men of the least skill and working at the lowest wages.
What comment have you to make on that « Is that correct
Mr. Roberts. That is a self-evident proposition. If there is not
sufficient activity in the industry to employ the mill's fullest time,
the men will not make the amount of wages they will when they are
on full time.
Mr. Gardner. Yes; but is that a fact, that employment in the
iron and steel industries is very irregular; it is most irregular among
the workmen of least skill, working at the lowest wages ? Is that a
fact?
Mr. Roberts. No. They are just as necessary for the operation
of the works as the men who are highly skilled.
Mr. Gardner. That is, the irregularity strikes all classes of labor
ahke, does it ?
Mr. Roberts. And is not peculiar to the iron and steel trades only.
If you have a period of depression, you slow up, but everything slows
up with it. If you reduce your tonnage, you can not reduce the num-
ber of positions in your works. They simply slow down. You may
run five days a week instead of six.
Mr. Gardner. But this slowing up of production does not throw
out of employment any more, proportionally, of one class of labor than
of another class of labor ?
Mr. Roberts. Not at all, sir.
Mr. Reed. Mr. Chairman, it has occurred to us, and it has been
suggested by Mr. Roberts, that it is probable the committee would
have a better understanding of the conditions of labor, as well as a
better understanding of the whole steel business, if the committee
could visit one of the large steel plants of the country. I want to say
in behalf of the corporation that if the committee cares to fix a time
to visit. one of the large mills in the Pittsburgh district, we would be
only too glad to see that it is given every facility to inspect the opera-
tion of the plant.
Mr. Roberts. Might I suggest, in that connection, that it would
seem to me extremely valuable if you could embrace, in that inspec-
tion, two plants; one representing a plant which has been taken over
by the Steel Corporation, or had been in existence prior to its organi-
zation, and then to inspect the newest plant at Gary, which has
been developed entirely by the Steel Corporation, in accordanc e with
its ideas of what should, be done ? You would then see the differences.
Mr. Reed. And the committee will get more knowledge and more
accurate knowledge from a two-days' visit of that kind than it will
from two weeks of testimony. We are quite confident of that.
Mr. Sterling. Would we be able to get any light on the labor
proposition — the condition of laborers, and everything of that kind ?
Mr. Reed. You would be able to see what the men do. A descrip-
tion of it from Mr. Brandeis, for instance, might not give you the
same impression as a visit to the works.
Mr. Gardner. Mr. Brandeis had not visited the works had he ">■
UKITED STATES STEEL COBPOEATION. 3293
Mr. Keed. No.
Mr. Brandeis's information came from two books that he read.
Mr. Steeling. Mr. Brandeis based his knowledge only on Mr.
Fitch's book and on the report of the bureau.
The Chairman. We know to what extent the bureau is rehable
and these witnesses whom we have heard.
Mr. Gardner. I think, if possible, we ought to go.
The Chairman; I was gomg to say this: I would be delighted to
have the committee go, but we have bankrupted the United States.
We have spent $34,000 in securing information, more information
than was secured by the Bureau of Corporations by an expenditure
of close to a miUion — $500,000 by the Steel Corporation, and $200,000
or $300,000 a year by the Government.
I am entirely satisfied that this money was not wantonly or fool-
ishly spent. I do not, however, feel like going to the House for an
additional appropriation, unless the committee so chooses. I am
economizing one very turn, in order to finish this investigation on the
amount of money appropriated. It is perfectly appalling — the agony
that some peoplp are undergoing because of the expense this com-
mittee has gone to.
Now, I do not feel that we ought to make this trip at the expense
of the Government. I am willing to pay my own expenses, and I
would be pleased to have the committee go, if they would go in that
way.
Mr. Sterling. I will go on that basis.
Mr. Young. I would be very glad to go, if I can get the time. I
would rather pay my own. expenses.
The Chairman. That is the way I would like to go. I would not
feel like asldng the House for anything.
Mr. Young. Do we pay for our printing, or does that come out of
another appropriation ?
The Chairman. No. Everything else.
Mr. Roberts. I regret extremely that our hands are tied, in regard
to inviting you.
Mr. Reed. Of course, we can not do that.
The Chairman. I think it would be an excellent idea if the com-
mittee could go; but I am continually admonished about the great
expense we are putting the Government to ; and for that reason I am
exercising the closest economy.
Mr. Roberts. I would like, Mr. Chairman, just to say one thing in
regard to these statistics:- I wUl put them in. But at the present
time, in my opinion, we have got an epidemic of statistics. Statistics
to anyone who does not understand them are a good deal like a loaded
weapon that may go off.
Mr. Bartlett. xou mean they would not know how to handle
them any more than a child knows how to handle a gun ?
Mr. Roberts. Exactly. It is very much the same as if a layman
attempted to study a law case and he was given the cases which bore
on that, and he did not know what to do with them.
Mr. Bartlett. I have seen a good many lawyers that way, who
got absolutely mental dyspepsis trying to digest a case.
Mr. Roberts. And it is the same way with a layman.
Mr. Young. This committee ought to be able to handle statistics
with some reasonable degree of intelHgence.
3294 UNITED STATES STEEL CORPOBATIOX.
Mr. Roberts. I am speaking of these statistics. When you come
to compare them with the statistics which you have already had pre-
sented to you— for instance, take the statistics of the Bureau ol Cor-
porations or the statistics of the labor department. At once, if you
are an expert, questions arise, How were these statistics prepared?
Mr. Young. Certainly.
Mr. EoBEKTS. On what basis were they prepared; were these wages
during full employment or partial employment, and so on. At once
a number of questions suggest themselves that will not suggest them-
selves to the mind of some one who has not been actively engaged in
that particular occupation.
The Chairman. Have vou some statistics there ?
Mr. Egberts. I have a pile here, sir, from which this report which
I have read has been made up.
Mr. Young. I think they ought to go with it. They are really
a part of it.
Mr. Roberts. If agreeable to you I will put them all in.
Now, that represents all I have to say on the subject of hours and
conditions of labor.
The Chairman. At that point I did not get to hear that part of
your testimony, and I regret it very much, Mr. Roberts, but I was
detained by a vitally important committee meeting that I could not
leavfe at the moment.
You have got these statistics showing the wages of the employees
in each one of your subsidiary companies *
Mr. Roberts. Largely.
The Chairman. Do those statistics cover the numbers and na-
tionalities of these employees 1
Mr. Roberts. The number of men employed, but not the nation-
alities in all cases.
The Chairman. In many cases ?
Mr. Roberts. I gave the nationalities tliis morning in the coal-
mining operations. I think there are some statistics there on behalf
of the Carnegie company, as to their nationalities. I think that has
already been put in the record. I think I have seen it in the record
already.
The Chairman. Have you the nationalities as to the Gary plant 1
Mr. Roberts. No.
The Chairman. Could you give me those statistics ?
Mr. Roberts. I presume they have them on record. If you would
like them I wUl see if I can obtain them.
The Chairman. I would like to have them.
Have you statistics as to the wages of employees on your transpor-
tation roads ?
Mr. Roberts. I have not them with me, but I presume I can get
them for you. -
The Chairman. Can not you do that? I regard it as vitally im-
portant.
Mr. Roberts. I will see if I can get them.
The Chairman. I suppose you keep a record of those in your trans-
portation department as you do in your other departments ?
Mr. Roberts. Oh, undoubtedly, the transportation companies
have their records of wages. I felt the transportation matters were
UNITED STATES STEEL CORPOEATION. 3295
ho subject to the conditions of all common carriers that they would
not be of interest to this committee.
The Chairman. That is exactly what makes them of interset. I
do not know what your wages are or how they will compare; but
there are two inquiries here that are vitally interesting to this com-
mittee. The first is, the steel corporation is charged with being
inimicable to organized labor, with opposing it.
Mr. Roberts. That has reference to transportation conditions ?
The Chairman. No. It could not do it with reference to transpor-
tation companies.
Mr. Roberts. Why not ?
The Chairman. Because the transportation companies of the steel
corporation are so similar to other transportation companies that if
you were to attempt to run your engines with men who are not mem-
bers of the Brotherhood of Locomotive Engineers it would cause a
large amount of trouble. You dare not do so with your transporta-
tion companies, as far as organized labor is concerned, because, in
my opinion, the steel corporation would not oppose organized labor
elsewhere than in its transportation business for any other reason
than the impossibility of doing it.
Mr. Roberts. I can not agree with that.
The Chairman. Why do you permit it in transportation companies,
if nowhere else ?
Mr. Roberts. Because every tub must stand on its own bottom.
The Chairman. Why does that tub have a different bottom from
other tubs ?
Mr. Roberts. The labor organizations as known among the trans-
portation companies are on a very different basis from those in the
manufacturing industries. That is one reason.
Mr. Reed. In what respect ?
Mr. Roberts. Well, one respect is that they are not a monopoly;
that they permit of the open shop — two most important considera-
tions.
Mr. Sterling. Is not that the poUcy of the Steel Corporation in
its manufacturing and mining plant ?
Mr. Roberts. Exactly.
Mr. Sterling. You do not, or do you, bar men from your mills
and mines because they are connected with union labor ?
Mr. Roberts. So far as I understand it, the policy of the United
States Steel Corporation is that their works are open to all men who
apply for work and are capable of performing it.
Mr. Bartlett. And who comply with your regulations.
Mr. Roberts. And comply with our regulations.
The Chairman. Do you keep a man in your employ who attempts
to organize a union, if you laiow it ?
Mr. Roberts. Of course, as far as the Steel Corporation is con-
cerned, and what would come under my knowledge as a director of
that, I should say would be a question entirely of what that man
attempted to do.
The Chairman. If he attempted to form a union ?
Mr. Roberts. There again you have
The Chairman (interposing). If he was an organizer?
Mr. Roberts. It depends upon what land of organizer he is.
The Chairman. An organizer of labor.
3296 UNITED STATES STEEL. UUKi-UllAXlUJN .
Mr. Roberts. It depends on what the organizer of labor \\ as doing.
The Chairman. If he was simply going about among the men,
taking their names and coUecting dues for the purpose of forming a
peaceful, compact, and mihtant union ?
Mr. Reed. Peaceful and mihtant ?
Mr. Roberts. You use the word "militant" to the exclusion of
all otlier sense ?
The Chaiemax. No; v.iien I use the word "militant," I mean this,
self-sustaining, determined to deal coUectiYeh' and not individually,
with cooperation.
Mr. Roberts. Now, Mr. Chairman, 1113- views on that subject, and
they are entirely personal, of course — I hold no brief for anyone but
myself — are that I see no reason whatever why men should not combine
together to dispose of their labor any more than that men should
combine together to use their capital; none whatever, provided, how-
ever, that both are under gOA^ernmental control. And that, in addi-
tion to that, they have full liabihtj^ imposed upon them for all their
undertakings. And, in addition to that, that neither side has any
monopolistic tendency.
Mr. Baetlett. That is about the law now. That would apply
both to labor organizations and industrial organizations.
Mr. Roberts. No. The difficulty with the usual labor organization
to-day is that its first and gi'eat requirement is that of a monopoly
without any liability whatever.
Mr. Bartlett. You speak of a bad labor organization. I say that
is practically regidated by law now, as far as monopoly is concerned.
Mr. Roberts. No. The closed shop represents monopoly pure
and simple. There is no law to prevent the closed shop; tnere is no
liability. A labor organization makes a contract to-day; there is
no liability on its part if it does not perform its contract.
Mr. Bartlett. The same liability as against any other person,
artificial or natural, which is liable under the law for damages.
Mr. Roberts. It is not an incoroorated organization.
Mr. Bartlett. It has the same liability that attaches to any per-
son or to any organization, for a violation of its contract. It is liable
under the law for damages.
Mr. Roberts. Where would you find it; how would you
catch it ?
Mr. Young. What would you sue on ?
Mr. Bartlett. They have a case in Connecticut, which will answer
that.
Mr. Reed. Do you know how you could collect on judgment ?
Mr. Bartlett. No. I suppose their judgment would be as good
as a judgment against any people who have judgments entered
against them, and nothing with which to pay them.
The Chairman. As I understand it, you do not object to such labor
unions as do not exist.
Mr. Roberts. There is no reason why they should not exist.
The Chairman. I say, the labor union to which you have no objec-
tion, the organized labor which you are w-iUing to endure, is the kind
of organized labor that, according to your own definition of it does
not exist in this country. '
Mr. Roberts. The organizations as they exist to-day are in differ-
ent degree. The average one is in no sense an American institution
UNITED STATES STEEL OOEPOEATION. 3297
absolutely foreign, imported, and has no place in the institutions of
this country. That is my belief.
The Chairman. Yes.
Mr. KoBEKTS. Now, you come to a different type of union repre-
sented, for instance, in the Amei'ican Brotherhood of Locomotive
Engineers, on an entirely diflferent basis, one that has had a most
honorable career, and I think as a rule has had the support of the
community at large.
Mr. Bartlett. How would you suggest that labor organizations
or capital organizations should be regulated or controlled by the
Government ?
Mr. Roberts. I am speaking now in the sense of chartering, either
local or national. I do not think possibly it is necessary by the State,
but that organizations of labor should be chartered the same as organi-
zations of capital.
Mr. Bartlett. Don't they recognize labor organizations; are they
not chartered by some State?
Mr. Roberts. I do not think so. I do not think any of them are
incorporated ; not to my knowledge.
Mr. Bartlett. I thought they were.
Mr. Sterling. Has the attitude of the Steel Corporation changed
with leference to labor unions at anj^ time since they have been
organized?
Mr. Roberts. That is a question that I can hardly answer, due to
the fact that there is a period there from 1902 to 1909 that I was not
connected with the corporation, and I am not familiar with what its
policies might have been.
Mr. Steeling: Is its attitude toward organized labor pretty much
the same in all the subsidiary companies?
Mr. Roberts. No, I should say-
Mr. Sterling (interposing). Do they all pursue the same policy in
reference to it ?
Mr. Roberts. I should say not. There are union men working for
the Steel' Corporation to-day, members of various unions.
Mr. Bartlett. Do you know what proportion of union men are
employed ?
Mr. Roberts. No, I do not.
The Chairman. In what business ?
Mr. Roberts. In the various works.
The Chairman. Outside of your transportation companies ?
Mr. Roberts. Oh, yes. They are known as machinists — various
unions are represented.
Mr. Gardner. Stationary engineers.
Mr. Roberts. I can not give all of them.
The Chairman. Those men are men that come to prepare your
plants.
Mr. Roberts. Oh, no; they are permanent employees. There is no
order or no policy of the Steel Corporation that you shall not be a
union man, none whatever.
Mr. Bartlett. There is a preference given to a nonunion man ?
Mr. Roberts. No. There is no question in that respect asked.
So long as this shop is an open shop it is open to any one who is able
to work in it and wants to work in it. That is all.
3298 UNITED STATES STEEL, C0EP0RA.TION.
The Chairman. I understand the minutes of the executive com-
mittee of the Steel Corporation— it is in therecord— state the attitude
of the United States Steel Corporation is as opposed to the organiza-
tion of labor; they discourage it. t i j! i^
Mr. Roberts. If you have that, Mr. Chairman, of course i deter to
the printed record. But I think vou wUl find that is not an organiza-
tion in general, but probably has some reference to some particular
organization.
The Chairman. It does not refer to any particular one.
Mr. Roberts. Of course, the minutes will speak for themselves.
The Chairman. With what company were you connected m 1902 ?
Mr. Roberts, After the spring of 1902 I was a director of the
United States Steel Corporation and a member of its executive
committee.
The Chairman. Were you connected with any particular sub-
sidiary ?
Mr. Roberts. None whatever.
The Chairman. Do you know whether at that time the various
subsidiary companies of the United States Steel Corporation kept a
list of men who had attempted to form unions, which list was fur-
nished to the various subsidiary companies.
Mr, Roberts. That the steel corporation kept a list?
The Chairman. Yes, and the various subsidiaries kept a list. I
am asking if they did.
Mr. Roberts. I do not know.
• The Chairman (continumg) . Of these men, for the purpose of
identifying them in case they asked to be employed.
Mr. Roberts. If they kept any such lists, 1 never heard of them.
Mr. Sterling. Do they have a black list of that kind?
Mr. Roberts. No. I think in very many of the companies they
have a system of recording, a card catalogue, so to speak. When a
man apphes and enters their work, they record his age, whether
married or single, nationaUty, Ms record, where he has worked; and
then if he is discharged they enter on that card the reason for his
discharge. It is simply a mere catalogue; that is all,
Mr. Bartlett. It is just kept for information of the steel corpo-
ration.
Mr. Roberts. It is not in the least what you might term a black
list. It is a universal hst.
Mr. Bartlett. I did not mean to ask if it was a black list. Is that
kept primarily for the information of the steel corporation, or is it
accessible to any other?
Mr. Roberts. It is only kept for the information of the subsidiary
company keeping it.
Mr. Bartlett. And not for other companies ?
Mr. Roberts. Oh, no.
Mr. Bartlett. And for no other manufacturers ?
Mr. Robert^. It is only a matter of record in case of death or acci-
dent, where they can communicate with a man's family, for instance,
. if he is a foreigner, when he comes there.
Mr. Bartlett. Or if he applies again for employment, to the same
company.
Mr. Roberts. That is all, to know where he had been in their
employ, and so on.
UNITED STATES STEEL COBPORATION. 3299
Mr. Bartlett. And not for the purpose of giving information to
anybody else?
Mr. RoBEETS. Oh, no; nothing whatever of that kind.
Mr. Gaednek. Did you read the evidence before this committee
of a reporter for the Pittsburgh Leader about a week ago ?
Mr. RoBEETS. I did not; no.
Mr. Gaednee. The statement was made by him that at some time
he had worked on a list, I think, probably, in 1909, that gave a list
of men who had been discharged from the Steel Corporation over a
number of years, which he could not specify; that against certain
numbers of these names it appears that the man was discharged for
cause; against other names that he was a labor organizer or labor
agitator; that he was uncertain whether it was circulated in the
steel trade in general, because I asked him whether it went to Jones
& Laughlin or not, and he did not know; but at aU events he was
quite convinced it was circulated amongst the subsidiary companies.
Do you see ?
Mr. RoBEETS. I see.
Mr. Gaednee. Do you know to what that refers?
Mr. Roberts. I have not any idea whatever.
Mr. Young. Have you heard of anything of the sort?
Mr. RoBEETS. It never reached me in the Steel Corporation.
Mr. Young. You were out of the Steel Corporation between 1902
and 1909 ?
Mr. Roberts. Yes, sir.
Mr. Young. What time in 1909 ?
Mr. Roberts. It was the autumn of 1909, some time; I do not
recollect. Late in the year, however.
Mr. Young. Would you have been familiar with it if such a Ust
had existed during your connection with the Steel Corporation?
Mr. Roberts. If it had been any matter of pohcy of the Steel
Corporation as a corporation I should have known of it, I think.
Mr. Young. If it was the custom among subsidiaries to circulate
amongst themselves such a list you would have known of it ?
Mr. Roberts. That might be questionable; I do not know whether
it would have reached the Steel Corporation or not.
Mr. Young. Are you familiar with the Homestead plant ?
Mr. Roberts. More or less so; more so in the early days, or prior
to the Steel Corporation, by actual visiting, than I have been since.
Mr. Young. Are you familiar with the conditions under which
men live there during the last three or four years, common labor men ?
Mr. Roberts. Not by personal visiting.
Mr. Young. I asked you that because we had a lady here before
us who testified to the conditions at Homestead. She was a settle-
ment worker, and had written a book in which she claimed that the
sanitary conditions of a large number of these men were very bad;
that their houses were grouped around small courts, which were very
filthy; that the houses contained, I think, only two rooms downstairs
and two rooms upstairs, and were occupied by two families, and
very many persons.
I wondered if you knew anything about them.
Mr. Roberts. But it was not represented that those conditions
existed within the sphere of the Homestead works or the subsidiaries
3300 UNITED STATKH STKBI. CORPORATION.
of the Steel Corporation, or th- coi|;orut.o.K 'I i.one wen, muoieipal
conditions beyond the rontrol of the Steel Corporation.
\fr Yorvo Ab 1 und<-rstood liw, these house- w.;re own.id by the
Carnerne Co., as part of their plant where thev ker>t their rner..
Mr. liKKO. She did not testify to that; and the fu. t is they <\<> not
own an\' of them. , r iu i
Mr. J(OBKRT8. 1 do not know whether tliey own any of the houses
at Homestead, , , , ^ j- , i • i
Mr KhU) Il'T trstiniony has provoked th'- mo-it indi^omnt denials
of the mani'ipal authorities of Ilomest.ad. if the, -ommittee wantt
to hear them I will give ihein tiieir names.
.Mr. KouKirr.s. We have trouble enonj.')! of our own.
Mr. YoiNO. f was trj-inj: to find out what the fa<t was.
Mr. lioiiKHTH. I do not understand any of those so'iolof.'i'a) matters
tou' jied upon hare are within t}i<- spher'' of the - orporation, at all,
The only points at whi'li the ^orfjorations ■ ontrol any of the settle-
ments are in tlie rninini.' re!.(ionfl. 1 J.^a^•e som<: fifpires ]iere thl*
morning showing' the 'onditions in the mining n-i/ion.
Mr. YouNO. So that at rjone of the steel plants do you own the
houH<-s '<
Mr. Roberts. At Gary \vc own some
Mr. Ri:ko, And at \'andergrift '
Mr. Roberts. 'Ilierc arc somr;, but 1 do not think at any of tho.s<
works we are at all a-,yiijnied of conditions. For instance, J hftv«
some pliotoj^raph- herr, unrler a se' f iorj of work whJeh 1 was going tc
touch upon later, known as " Welfare work." '1 hese are playground*
and (gardens at various points.
Jf 1 am not wearyinj.' you tof) much, and j.'et through with v/ha1
little I have left, tlien I will feel open for anythin;:' you liave to say
But f do want to toucli upon thi.s matter, "old ajre at forty,"
Mr. DA.M'OP.rn. Do 1 understand yon to say tliat at Homesteac
the Carnegie Co. ov.ns rione of the liouses ^
Mr, Robert-, 1 so undcr-tand.
Mr. Daxfoeth. J understood the testimony differenth,' rnyself,
Mr. Roberts. I do not underhtand the situation that was com
plained of is within the '-<■■.'>]><■ of the corporation or any of its sub-
sidiaries. I do not understand that tliere was a visit made by tb<
same workers to the shof^s at Arnbridge, helon^ging to the Americar
Bridge Co., and an inspection made of ih'/-,<t, of the housing, and 8(
on. When the report was written, before publication it was sub
mitted to the offic^jn-, of the Steel Corporation, I heJiffve, and thej
asked why Arnbridge was not included in tlie report.. The reply wai
there was no fault to find; that they were only making a report 0
conditioas where they could find fault.
The Chaiemax. Speaking of the American Bridge Co., were y<n
connected with that company for a long time '',
ilr. Roberts. Only from .May, 1900, until the spring of 1001, no
quite a year.
The Chairma.v. You were with that company before it became •<
subsidiary of the United Stat<^-: Steel Corporation ',
Mr, Robeets. I was president of the American Bridge Co. fo
about a year.
The fifArEMAX. ^^'hat was the capitalization of the company whei
it went into the Steel Corporation ''.
UNITED STATES STEEL COEPOEATION. 3301
Mr. Roberts. Of the bridge company ?
The Chairman. Yes, sir.
Mr. Roberts. I think it was about $60,000,000.
The Chairman. I will ask you if that company did not have at the
time it went into that concern, into the Steel Corporation, a great
many useless and antiquated and worthless plants that were taken in
it, just to get all the bridge company plants into the corporation ?
Mr. Roberts. No. There were a number of small plants — some
small plants which proved after they had been running for a short
time to be uneconomical — and by taking two or three of those small
plants and concentrating them at one point we could produce more
economical results, and that was done.
The Chairman. What would you call a small plant ? What would
be its tonnage per year ?
ilr. Roberts. A small plant might employ 40 or 60 men.
The Chairman. What would be its tonnage ?
Mr. Roberts. It might run from 500 tons to 1,000 tons. The out-
put of a bridge plants depends very much upon the character of
work it does.
The Chairman. Suppose it had a tonnage of 10,000 tons. Would
that be a small plant or a large one ?
Mr. Roberts. That would not be a large plant, no.
The Chairman. What would you call a large plant; how much
tonnage ?
Mr. Roberts. 100,000 or 125,000 tons a year.
The Chairman. Do you know anything about the plant at Albany,
N. Y., built in 1880?
Mr. Roberts. I do know of it, yes.
The Chairman. What sort of a plant was that ?
Mr. Roberts. It had come to a point where it was either necessary
to rebuild the buildings, or abandon the plant.
The Chairman. Was that a superannuated plant ?
Mr. Roberts. It was an old plant.
The Chairman. Do you know what amount went into the Steel
Corporation 1
Mr. Roberts. I did not; about the early formation of the bridge
company I know nothing.
The Chairman. Do you know the Athens Plant, at Athens, N. Y. ?
Mr. Roberts. Yes.
The Chairman. What sort of a plant was that?
Mr. Roberts. It was one of the most active plants at one time.
The Chairman. What sort of a plant was it at the time it went
into the steel corporation ?
Mr. Roberts. It was a plant that had reached a good old age.
It had not been kept up to modern requirements. It either should
be rebuilt or merged with someone else.
The Chairman. When was it merged
Mr. Roberts (interposing). It was merged with the Elmira plant
subsequent to my leaving the plant.
The Chairman. When was it merged into the American Bridge Co. ?
Mr. Roberts. On the formation of the American Bridge Co.
The Chairman. What time was that ?
Mr. Roberts. It was in 1900.
3302 UNITED STATES STEEL COEPOBATION.
The Chair-man. How did they happen to take in this superan-
nuated old plant ? . , i- .lu 1 J.
Mr. Roberts. Because at that time the President of the plant was
one of the oldest and best known bridge engineers in the Umted
States. That was Mr. Charles McDonald. He was the president
of that company. They had a valuable business, a valuable raUroad
business, and the plant could have continued as it was. ±Jut 1
always beheved that the necessity for forming the American Bridge
Co. was to consoHdate a number oif these small plants, which were not
economical operating units at all, but by concentration could be
made so. .
The Chairman. Was it made economic by concentration?
Mr. Roberts. I think it was.
The Chairman. How did it operate? Was not that plant dis-
mantled and abandoned shortly after forming the American Bridge
Co.?
Mr. Roberts. A new plant was built, and those plants were con-
centrated at Elmira.
The Chairman. Do you know anything about the Beriin plant at
East Berhn, Conn. ?
Mr. Roberts. I do. It is a small plant making what was known
in New England as fireproof buildings.
The Chairman. How did it happen to be taken into the American
Bridge Co. in 1900? It was built in 1869.
Mr. Roberts. It was an up to date plant, the Berlin plant, and
had been kept up to date.
The Chairman. An up-to-date plant yet.
Mr. Roberts. I think that plant is not in operation.
The Chairman. No sir; it is not; it is abandoned.
Mr. Roberts. Because the character of work that was done
proved unprofitable, it was abandoned by the American Bridge Co.
The American Bridge Co. abandoned that class of work.
The Chairman. Before or after the American Bridge Co. went into
the Steel Corporation ?
Mr. Roberts. It practically abandoned it before it went in.
The Chairman. Was it not abandoned in March, 1909?
Mr. Roberts. I think prior to that; long before that.
The Chairman. That is the report given me by the United States
vSteel Corporation.
Mr. Reed. Probably that is the date of dismantlement.
The Chairman. The date of abandonment ?
Mr. Reed. That is probably what it means.
Mr. Roberts. That is not the date at which it ceased to operate.
The Chairman. Do you know anything about the Horseheads
plant, at Horseheads, N. Y. ?
Mr. Roberts. I do not think I do.
The Chairman. Do you know anything about the Groton plant,
at Groton, N. Y. ?
Mr. Roberts. Yes.
The Chairman. That was taken in, in 1900, into this combination
of structural companies ?
Mr. Roberts. Yes. It was a very small highway concern. One of
the very first things I believe it was necessary to do when I took the
UNITED STATES STEEL COBPOEATION. 3303
management of the American Bridge Co. was to abandon all highway-
bridge work, for I came to the conclusion if we did not we would
either be in jail or some place else.
The Chaieman. Do you know anything about the Eochester plant,
at Rochester, N. Y. ?
Did it not also build steel buildings and engage in erecting steel?
Mr. Roberts. Which?
The Chairman. The Groton plant.
Mr. Roberts. It built what I would term hght fireproof buildings;
it had a great deal of sheet-iron work and a great deal of hght work.
They were not what I would call skeleton buildings, office buildings,
or that type, but very hght work.
The Chairman. Take the Keystone plant, at Pittsburgh, Pa. ;
what sort of a plant was that ?
Mr. Roberts. That was the structural department of the Carnegie
Steel Co.
The Chairman. Was that a very good plant when you took it in
the American Bridge Co. ?
Mr. Roberts. It was a plant in full operation, with the Carnegie
influence behind it. It was part of a system of plants.
The Chairman. It had a tonnage of 48,200 tons, I beheve ?
Mr. Roberts. Yes.
The Chairman. It was a pretty good plant ?
Mr. Roberts. Yes.
The Chairman. Up to date ?
Mr. Roberts. Fairly so.
The Chairman. Is it running now ?
Mr. Roberts. No.
The Chairman. What stopped it ?
Mr. Roberts. We concentrated all the Pittsburgh plants in one new
operation at Ambridge, Pa., just within the Pittsburgh limits. We
have a number of plants. The Schifler, the Walker, and a number of
those plants. We believed we could do better in building a new plant,
and taking what machinery there was of value from these, all of them
being rendered more or less out of date by the new methods intro-
duced by electrically driven tools. We built a new plant at Am-
bridge, and spent some millions of dollars in doing so.
The Chairman. Do you know anything about the Pittsburgh plant,
at Pittsburgh, Pa?
Mr. Roberts. That was one of the Pittsburgh plants I know of.
The Chairman. It was also abandoned.
Mr. Roberts. Some of those plants, bear in mind, have not been
abandoned. They have been substituted to other purposes than
those which they origiaally were used for.
The Chairman. How about the Youngstown plant, at Youngs-
town, Ohio ?
Mr. Roberts. That is a good, modern plant, I believe.
The Chairman. It was taken into the American Bridge Co. ?
Mr. Roberts. Yes.
The Chairman. Did it do good work ?
Mr. Roberts. You mean prior to being taken in ?
The Chairman. Yes, sir.
Mr. Roberts. Or afterwards ?
17042— No. 50—12 4
3304 UNITED STATES STEEL, COBPOBATION.
The Chairman. Was it an efficient, valuable plant, when you took
it in?
Mr. Roberts. I think so. , v ^
The Chairman. Are there any other plants around Youngstown
that you could concentrate it with, to advantage ? , , , , . t
Mr. Roberts. I can not say from memory in regard to tHat. i
would have to look into it.
The Chairman. Why did you abandon it, m 1904 <
Mr. Roberts. I was not connected with the bridge company in
1904. ., , » , .,
Mr. Reed. Youngstown is only 40 miles from Ambridge, anyway,
Mr. Chairman. , t> ^ i i
The Chairman. Do you know anything about the J3uttalo plant,
at Buffalo, N. Y « . .
Mr. Roberts. No. I think you are probably askmg me questions
which occurred during the time I had no connection with the company.
The Chairman. How about the Columbus plant at Columbus,
Ohio?
Mr. Roberts. I can only say
The Chairman (interrupting). It was a good company at the time
it was taken in ?
Mr. Roberts. I can only say the policy of the company, which
rendered the company possible in the start, was one of consolidation
and elimination of a number of small, economical units. That was
their purpose when they came together. The formation which led
up to the American Bridge Co. was on the part of these small inde-
pendent units, who neither had sufficient capital to operate nor a
sufficient capacity. They decided the only thing they could do
would be to consolidate, to reduce the number of their plants, and
make economical units.
The Chairman. How about the Lafayette Plant, at Lafayette,
Ind.?
Mr. Roberts. I can say the same thing of that.
The Chairman. Was it a good plant ?
Mr. Roberts. Light highway work mostly.
The Chairman. That was taken into the American Bridge Co. ?
Mr. Roberts. It was.
The Chairman. Was it a bridge company any length of time
thereafter ?
Mr. Roberts. I can not answer that question; I do not remember.
The Chairman. The report says it was abandoned in 1904.
Mr. Roberts. You can see the difference in sizes when I say the
company which I was connected with, the Pencoyd Works, had a
capacity in its bridge shop at that time of over 100,000 tons a year.
If you wanted to make an economical unit, you had to do it, and
these men joined together for that purpose. It was never intended
not to reduce the number of those plants and to consolidate them.
The Chairman. Do you know anything about the Shultz plant ?
Mr. Roberts. That was a plant at Pittsburgh.
The Chairman. Yes, McKees Rocks, Pa. Was it a pretty good
plant ?
Mr. Roberts. The type of work it did was light work.
The Chairman. And the Milwaukee plant, at Milwaukee Wis.
UNITED STATES STEEL COEPOEATION. 3305
Mr. KoBEETS. That was a miscellaneous work; I do not know much
about it. I never saw it.
The Chairman. Now, is it true that you sell finishing material to
the American Bridge Co. at lower prices than you charge independent
companies for the same character of material ?
Mr. Reed. What do you mean by "you " ?
The Chaieman. I mean the Steel Corporation, in its intercorporate
sales.
Mr. RoBEETS. The Steel Corporation does not sell anything.
The Chaieman. Do not the subsidiary companies make such stuff,
such material as the bridge company uses? It does not make it
from the blast furnaces, as I undTerstand. Do you sell that at the
same price to another company as you would to a subsidiary com-
pany? Do you sell to the subsidiary companies at the same price
you sell to independents ? Do you catch my question ?
Mr. RoBEETS. What you mean is
The Chaieman (interposing). What I mean is this: The American
Bridge Co. does not operate blast furnaces nor does it make angles.
Mr. RoBEETS. It makes angles.
The Chaieman. They are like the Carnegie Co.
Mr. RoBEETS. There are some sizes sold by the Carnegie Co. to it.
Some sizes are sold to it by various subsidiary companies. It makes
its own steel as well.
The Chaieman. Does the Carnegie Co. sell to the American Bridge
Co. at the same price as to independents ?
Mr. RoBEETS. It sells at market rates.
The Chaieman. What do you mean by market rates ?
Mr. RoBEETS. Market rates.
The Chaieman. Does it not sell to the American Bridge Co. for
less?
Mr. RoBEETS. Why should it ? No. It seUs at market rates.
All intercompany business between the subsidiary companies and
the United States Steel are at market rates.
The Chaieman. That is, if the Carnegie Co. has an order for
structural material from the American Bridge Co. and it has a similar
order, we wiU say, from MiUiken Bros., before that concern went out
of business — it would be sold to the American Bridge Co. and to
MiUiken, the same material, for the same price.
Mr. RoBEETS. At the same market rates.
The Chaieman. Would they be charged the same prices ?
Mr. RoBEETS. I can not tell you that. It would be the same
market rates. There are no absolute fixed prices in the steel business.
That has been one of the misunderstood things.
The Chairman. But I am not asking about that. Suppose the
American Bridge Co. wanted a certain number of girders of certain
dimensions and a certain number of I beams of various dimensions,.
and MiUiken Bros, wanted the same identical material, at the same
time?
Mr. RoBEETS. Yes.
The Chairman. Would you have gotten the same amount of
money from the American Bridge Co. that you did from MiUiken
Bros., for the same identical thing? .
Mr. RoBEETS. I think so. Probably the American Bridge Co., if it
had gone out into the open market, to Jones & Laughlin, for instance.
3306 UNITED STATES STEEL CORPOEATION.
or some one else, would have bought it cheaper than it bought it from
the Carnegie Steel Co. ^ iu tt •+ a
The Chaieman. Does the American Bridge Co. or the United
States Steel Corporation stand the freight on the finished bndge and
structural steel, from the point of manufacture to destination «
Mr. Roberts. How is that ■? ^ ,, ^t -i j
The Chairman. Does the American Bridge Co. or the United
States Steel Corporation stand the freight on the finished bridge and
structural steel, from the pomt of manufacture to destination i
Mr. Roberts. It depends entirely upon the terms of the contract
whether it is f . o. b. works or f . o. b. destination.
The Chairman. What is your custom ?
Mr. Roberts. It varies with each individual contract.
The Chairman. But you do make contracts by which you pay the
freight ?
Mr. Roberts. Oh, all the time.
Mr. Bartlett. I want to inquire about that. Is that done with a
view of discriminating between purchasers ?
Mr. Roberts. No. It depends upon the nature of your contract.
The inquiry may come — —
Mr. Bartlett (interposing) . In order to get the business ?
Mr. Roberts. No, sir. The inquiry may come for the price of
structural material f. o. b. cars, works; from another party it may
come for a price f . o. b. cars, for instance, delivered at Philadelphia or
Washington, D. C; from another party it may be for the price per
pound for structural work erected in place, set up. No two contracts
are the same in that respect.
Mr. Bartlett. If you got a contract for delivery f. o. b. at your
works, and one f . o. b. destination, you add the freight ?
Mr. Roberts. We add freight ; that is all.
The Chairman. You were a director of this concern. Can you tell
what per cent of the structural steel business you had at the time of the
formation of this concern ?
Mr. Roberts. I think I gave testimony as to that in my previous
■examination.
The Chairman. I do not recall it.
Mr. Roberts. I would refer to it. I do not want off-hand to make
a mistake. My impression is it was less than 50 per cent.
The Chairman. I think so.
Mr. Roberts. Of the entire output.
The Chairman. Did you have any real active competition at that
time ?
Mr. Roberts. Oh, yes.
The Chairman. Who were your principal competitors at that time?
Mr. Roberts. There was the Phoenix Co., the Pennsylvania Steel
Co., tlie McClintock-MarshaU Co. plants at Pittsburgh and Potts-
town, MiUiken Bros. They are innumerable. I could give you a list
of 100 or more of them.
The Chairman. You had very active competition at the time of
the formation of this American Bridge Co. ?
Mr. Roberts. Yes. The Carnegie Steel Co. was another com-
petitor.
The Chairman. I mean at the time of the formation of the United
States Steel Corporation.
UNITED STATES STEEL, COEPOEATION. 3307
Mr. Roberts. I thought you were speaking about the American
Bridge Co.
The Chairman. Oh, no.
Mr. Egberts. Now, I was speaking of the year 1900, and you are
speaking of 1901.
The Chairman. Outside of those you have given, who are the
principal competitors that did not go in ?
Mr. Roberts. Those are the ones i have been naming.
The Chairman. They did not go into the Steel Corporation ?
Mr. Roberts. They did not go into the American Bridge Co. or the
Steel Corporation.
The Chairman. How did the per cent of that business, as con-
trolled by the United States Steel Corporation at the time of its
formation, compare with the per cent of the tin-plate business, we will
say.
Mr. Roberts. It had a greater per cent of the tin-plate business
than it had of the structural business.
The Chairman. How about the American steel and wire business ?
Mr. Roberts. It had a greater percentage of the steel and wire
business than it had of the structural business.
The Chairman. How about the raU business ?
Mr. Roberts. That I am not prepared, offhand, to say.
Mr. Chairman. What is your opinion ?
Mr. Reed. These figures are all m evidence.
The Chairman. I do not recall it. He wUl probably recall.
Mr. Reed. I can give them to you.
The Chairman. Go ahead.
Mr. Reed. In 1901—
Mr. Bartlett. What page ?
Mr. Reed. Page 365 of Mr. Herbert Knox Smith's report.
Mr. Roberts. The original figures, at the time of the formation,
were given to the committee, I think in Judge Gary's testimony.
The Chairman. You had a greater per cent, I believe of coated-tin
mill products, and a greater per cent of black and coated sheets and
wire rods, and wire naUs, wrought pipe and tubes, and seamless
tubes. Were there any businesses in which you had a less per cent
of the output, to amount to anything, than of the structural steel ?
Mr. Reed. Pig iron for one.
The Chairman. What else ?
Mr. Reed. I do not think of any others at this minute.
The Chairman. You were a purchaser of pig iron, were you not ?
Mr. Roberts. The American Bridge Co. was a purchaser of pig
iron, yes.
The Chairman. It was the policy of the Steel Corporation at the
time of its formation to keep the price of pig iron stable, was it not ?
Mr. Roberts. It was a large purchaser of pig iron at the time of its
formation. '
The Chairman. Did it not form for the purpose of maintaining
stable prices.
Mr. Roberts. No, it
The Chairman (interposing). My recollection is that the statement
occurs in the minutes of the Steel Corporation, or that it is stated in
the minutes of the Carnegie Co., that its policy, or the policy of the
3308 UNITED STATES STEEL COKPOEATIOJN .
United States Steel Corporation, was to prevent fluctuations in price
of pig iron and to obtain a stable price. . ,, ,
Mr. Roberts. I think the policy of the Steel Corporation through-
out has been to maintain stable prices.
The Chairman. In pig iron ?
Mr. Roberts. In anything; all output.
The Chairman. How many of those concerns that were com-
petitors of yours at that time are now coinpetitors, who were at the
time of the formation of the United States Steel Corporation?
Mr. Roberts. I do not follow you clearly in the term ' 'you," and
so on.
The Chairman. I beg your pardon. What per cent of the makers
of structural steel who were m the business at the time the Steel
Corporation was formed, are in the business now?
Mr. Roberts. They are all in the business, and in addition a good
many more.
The Chairman. Are Milliken Bros, in the business ?
Mr. Roberts. They are being operated by receivers.
The Chairman. How many of them are operated by receivers?
Mr. Roberts. Milliken Bros, are operated by receivers. They are
the only ones I know of in that condition. I hope there will not be
more. But the number of independents have increased. I saw a
list recently which showed, I think, that the independent structural
plants had increased in 10 years from some 200 to some 400. The
percentage which the Steel Corporation's structural shops now bear
to the whole is about 30 per cent of the structural business of the
country to-day.
The Chairman. You have 30 per cent to-day ?
Mr. Roberts. Yes.
The Chairman. Have you Herbert Knox Smith's figures there ?
Mr. Reed. Of course you understand in the manufacture of struc-
tural shapes
Mr. Roberts (interposing). Not structural shapes; fabricated
structural material.
The Chairman. I mean the American Bridge Co.'s structural
material for erecting buildings.
Mr. Roberts. That is what I understand.
Mr. Young. The last year Mr. Smith gives the structural shapes is
1909.
Mr. Roberts. That is another matter. That is the structural
shape before fabrication — angles, beams, and so on.
The Chairman. Has this American Bridge Co., since it went into
the Steel Corporation, done a profitable business ?
Mr. Roberts. I can not answer that question, Mr. Chairman. I
have never seen the figures.
The Chairman. Have you those figures up to the present, lb.
Reed?'
Mr. Reed. I have the figures for 1911, as stated in the Steel Cor-
poration's answer in the dissolution suit. At the present time the
competitors of the American Bridge Co. produce 70 per cent of bridge
and structural steel work fabricated in the United States.
Mr. Roberts. That was my impression.
The Chairman I know there was very sharp competition.
UNITED STATES STEEL COEPOEATION. 3309
Mr. Roberts. Mr. Chairman, just while you are there, it may be
interestii^ on the subject of structural material to look over this
diagram ihave here showing the price of plate girder bridges for 10
years prior to 1900 and 10 years subsequent to 1900, and also the
wages paid in bridge shops during that time. If we take the year
1900 as a basis, the wages in bridge shops paid have increased-35 per
cent, and the selling price of plate girder bridges has been reduced 32
per cent. If they get apart much farther there is going to be trouble
pretty soon. '
The Chaikman. I did not quite catch that.
Mr. Roberts. Here is a diagram showing the wages paid the em-
ployees of bridge shops, structural shops, from the year 1890 to 1910;
also the price of the material which composes plate-girder bridges, and
the selling price of plate-girder bridges.
The wages have advanced since 1900 35 per cent per day, whereas
the selling price of plate-girder bridges has been reduced 32 per cent.
They are getting farther apart, and I do not know which is going out
of sight first.
The Chairman. I quite agree with you. Now, you are selling
structural shapes at a very much less price than you did in 1900.
That is, at a very much less profit.
Mr. Roberts. Oh, profit ?
The Chairman. Yes.
Mr. Roberts. I think that is the case.
The Chairman. Here is a condition of affairs that appears inter-
esting to me. Perhaps you can explain it. The dividends received
by the United States Steel Corporation on the preferred stock of the
American Bridge Co. for the last 10 years was $19,715,577.50, as
shown by the books of the company, furnished me by Mr. McRae.
The total dividends and interest of the Carnegie bonds received by the
United States Steel Corporation for the same time were $763,124,-
386.53, which gives 2.6 per cent profit for the American Bridge Co.
during that period, which is a very low profit.
Can you account, for me, for the very small amount of the earnings
of the American Bridge Co. during the last 10 years? Why it is
that this company is earning practically nothing ?
Mr. Roberts. One reason, I might say, probably, would be the
very full current rates it has been compelled to pay for its material,
to the other subsidiary companies.
The Chairman. The high price of the raw material ?
Mr. Roberts. The full market rates for raw material. In other
words, it is not purchased in the open market in competition.
The other reason would be that it has had a very fierce competition
•with outsiders throughout that entire time.
I can not offhand think of anything else.
The Chairman. The price of material from which structural shapes
are fabricated is so near the selling price of structural shapes there is
no profit in it. Do I understand you that way ?
Mr. Roberts. The profit is low.
The Chairman. That is, because of the lack of profit.
Mr. Young. About $1,900,000 a year was the average,
Mr. Roberts. About $2,000,000 a year?
Mr. Young. I say, $1,900,000.
Mr. Roberts. Yes.
3300 UNITED STATES STEEL COBPOEATION.
of the steel Corporation, or the corporation. Those were municipal
conditions beyond the control of the Steel Corporation.
Mr. YouKG. As I understood her, these houses were owned by the
Carnegie Co., as part of their plant where they kept their men.
Mr. Reed. She did not testify to that; and the fact is they do not
own any of them.
Mr. RoBEETS. I do not loiow whether the}" o'vvn any" of the houses
at Homestead.
Mr. Reed. Her testimony has provoked the most indignant denials
of the municipal authorities of Homestead. If the committee wants
to hear them I will give them their names.
Mr. Roberts. We have trouble enough of our own.
Mr. YotiNG. I was trying to find out what the fact was.
Mr. Roberts. I do not understand any of those sociological matters
touched upon here are within the sphere of the corporation, at all.
The only points at which the corporations control any of the settle-
ments are in' the mining regions. I gave some figures here this
morning showing the conditions in the mining region.
Mr. Young. So that at none of the steel plants do you own the
houses ?
Mr. Roberts. At Gary we own some.
;\Ir. Reed. And at A'andergrift ?
Mr. Roberts. There are some, but I do not think at any of those
works we are at all ashamed of conditions. For instance, I have
some photographs here under a section of work which I was going to
touch upon later, known as "Welfare work." These are playgrounds
and gardens at various points.
If I am not wearying you too much, and get through with what
little I have left, then I will feel open for anything you have to say.
But I do want to touch upon this matter, "old age at forty."
Mr. Danforth. Do I understand you to say that at Homestead
the Carnegie Co. owns none of the houses?
Mr. Roberts. I so understand.
Mr. Danforth. I understood the testimony differently myself.
Mr. Roberts. I do not understand the situation that was com-
plamed of is within the scope of the corporation or any of its sub-
sidiaries. I do not understand that there was a visit made by the
same workers to the shops at Ambridge, belonging to the American
Bridge Co., and an inspection made of those, of the housing, and so
oil. When the report was written, before publication it was sub-
mitted to the officers of the Steel Corporation, I beheve, and they
a^ked why Ambridge was not included m the report. The reply was
there was no fault to find; that they were only making a report of
conditions where they could find fault.
The Chairman. Speaking of the American Bridge Co., were you
connected with that company for a long time ?
Mr. Roberts. Only from May, 1900, until the spring of 1901, not
quite a year.
The Chairman. You were with that company before it became a
subsidiary of the United States Steel Corporation?
Mr. Roberts. I was president of the American Bridge Co. for
about a year.
The Chairman. What was the capitalization of the company when
it went mto the Steel Corporation ?
UNITED STATES STEEL, COEPOKATION. 3301
Mr. Roberts. Of the bridge company ?
The Chairman. Yes, sir.
Mr. Roberts. I think it was about $60,000,000.
The Chairman. I will ask you if that company did not have at the
time it went into that concern, into the Steel Corporation, a great
many useless and antiquated and worthless plants that were taken in
it, just to get all the bridge company plants into the corporation ?
Mr. Roberts. No. There were a number of small plants — some
small plants which proved after they had been running for a short
time to be uneconomical — and by taking two or three of those small
plants and concentrating them at one point we could produce more
economical results, and that was done.
The Chairman. What would you caU a small plant ? What would
be its tonnage per year ?
Mr. Roberts. A small plant might employ 40 or 60 men.
The Chairman. What would be its tonnage ?
Mr. Roberts. It might run from 500 tons to 1,000 tons. The out-
put of a bridge plants depends very much upon the character of
work it does.
The Chairman. Suppose it had a tonnage of 10,000 tons. Would
that be a small plant or a large one ?
Mr. Roberts. That would not be a large plant, no.
The Chairman. What would you call a large plant; how much
tonnage ?
Mr. Roberts. 100,000 or 125,000 tons a year.
The Chairman. Do you know anything about the plant at Albany,
N. Y., built in 1880?
Mr. Roberts. I do know of it, yes.
The Chaekman. What sort of a plant was that ?
Mr. Roberts. It had come to a point where it was either necessary
to rebuild the buildings, or abandon the plant.
The Chairman. Was that a superannuated plant ?
Mr. Roberts. It was an old plant.
The Chairman. Do you know what amount went into the Steel
Corporation ?
Mr. Roberts. I did not; about the early formation of the bridge
company I know nothing.
The Chairman. Do you know the Athens Plant, at Athens, N. Y. ?
Mr. Roberts. Yes.
The Chairman. What sort of a plant was that?
Mr. Roberts. It was one of the most active plants at one time.
The Chairman. What sort of a plant was it at the time it went
into the steel corporation ?
Mr. Roberts. It was a plant that had reached a good old age.
It had not been kept up to modern requirements. It either should
be rebuilt or merged with someone else.
The Chairman. When was it merged
Mr. Roberts (interposing). It was merged with the Elmira plant
subsequent to my leaving the plant.
The Chairman. When was it merged into the American Bridge Co. ?
Mr. Roberts. On the formation of the American Bridge Co.
The Chairman. What time was that ?
Mr. Roberts. It was in 1900.
3302 UNITED STATES STEEL. CORPOEATION.
The Chaiemax. How did they happen to take in this superan-
nuated old plant ?
Mr. Roberts. Because at that time the President of the plant was
one of the oldest and best known bridge engineers in the United
States. That was Mr. Charles ilcDonald. He was the president
of that company. They had a valuable business, a valuable railroad
business, and the plant could have continued as it was. But I
always beheved that the necessity for forming the American Bridge
Co. was to consolidate a number oif these small plants, which were not
economical operating units at all, but by concentration could be
made so.
The Chairman. Was it made economic by concentration?
Mr. Roberts. I think it was.
The Chairman. How did it operate? Was not that plant dis-
mantled and abandoned shortly after forming the American Bridge
Co.?
Mr. Roberts. A new plant was built, and those plants were con-
centrated at Elmira.
The Chairman. Do you know anything about the Berlin plant at
East Berlin, Conn. ?
Mr. Roberts. I do. It is a small plant making what was known
in New England as fireproof buildings.
The Chairman. How did it happen to be taken into the American
Bridge Co. in 1900? It was built in 1869.
Mr. Roberts. It was an up to date plant, the Berlin plant, and
had been kept up to date.
The Chairman. An up-to-date plant yet.
Mr. Roberts. I think that plant is not in operation.
The Chairman. \o sir; it is not; it is abandoned.
Mr. Roberts. Because the character of work that was done
proved unprofitable, it was abandoned by the American Bridge Co.
The American Bridge Co. abandoned that class of work.
The Chairman. Before or after the American Bridge Co. went into
the Steel Corporation ?
Mr. Roberts. It practically abandoned it before it went in.
The Chairman. Was it not abandoned in March, 1909?
Mr. Roberts. I think prior to that; long before that.
The Chairman. That is the report given me by the United States
Steel Corporation.
-Mr. Reed. Probably that is the date of dismantlement.
The Chairman. The date of abandonment?
^Ir. Reed. That is probably what it means.
Mr. Roberts. That is not the date at which it ceased to operate.
The C!hairman. Do you know anything about the Horseheads
plant, at Horseheads, N. Y. ?
Mr. Roberts. I do not think I do.
The Chairman. Do you know anything about the Groton plant,
at Groton, X. Y. *
Mr. Roberts. Yes.
The Chairman. That was taken in, in 1900, into this combmation
of structural companies ?
Mr. Roberts. Yes. It was a very small highway concern. One of
the very fu-st things I believe it was necessary to d.o when I took the
UNITED STATES STEEL COKPOBATION. 3303
management of the American Bridge Co. was to abandon all highway-
bridge work, for I came to the conclusion if we did not we would
either be in jail or some place else.
The Chairman. Do you know anything about the Rochester plant,
at Rochester, N. Y. «
Did it not also build steel buildings and engage in erecting steel?
Mr. Roberts. Which?
The Chairman. The Groton plant.
Mr. Roberts. It built what I would term Ught fireproof buildings;
it had a great deal of sheet-iron work and a great deal of light work.
They were not what I would call skeleton buildings, office buildings,
or that type, but very fight work.
The Chairman. Take the Keystone plant, at Pittsburgh, Pa. ;
what sort of a plant was that ?
Mr. Roberts. That was the structural department of the Carnegie
Steel Co.
The Chairman. Was that a very good plant when you took it in
the American Bridge Co. ?
Mr. Roberts. It was a plant in full operation, with the Carnegie
influence behind it. It was part of a system of plants.
The Chairman. It had a tonnage of 48,200 tons, I befieve ?
Mr. Roberts. Yes.
The Chairman. It was a pretty good plant ?
Mr. Roberts. Yes.
The Chairman. Up to date ?
Mr. Roberts. Fairly so.
The Chairman. Is it running now ?
Mr. Roberts. No.
The Chairman. What stopped it ?
Mr. Roberts., We concentrated all the Pittsburgh plants in one new
operation at Ambridge, Pa., just within the Pittsburgh limits. We
have a number of plants. The Schifler, the Walker, and a number of
those plants. We believed we could do better in building a new plant,
and taking what machinery there was of value from these, all of them
being rendered more or less out of date by the new methods intro-
duced by electrically driven tools. We built a new plant at Am-
bridge, and spent some millions of dollars in doing so.
The Chairman. Do you know anything about the Pittsburgh plant,
ait Pittsburgh, Pa?
Mr. Roberts. That was one of the Pittsburgh plants I know of.
The Chairman. It was also abandoned.
Mr. Roberts. Some of those plants, bear in mind, have not been
abandoned. They have been substituted to other purposes than
those which they originally were used for.
The Chairman. How about the Youngstown plant, at Youngs-
town, Ohio ?
Mr. Roberts. That is a good, modern plant, I believe.
The Chairman. It was taken into the American Bridge Co. ?
Mr. Roberts. Yes.
The Chairman. Did it do good work ?
Mr. Roberts. You mean prior to being taken in ?
The Chairman. Yes, sir.
Mr. Roberts. Or afterwards ?
17042— No. 50-12 4
3304 UNITED STATES STEEL COBPOEATION.
The Chaieman. Was it an efficient, valuable plant, when you took
it in?
Mx. Roberts. I think so. j v i.
The Chairman. Are there any other plants around Youngstown
that you could concentrate it ^\-ith, to advantage ?
Mr. Roberts. I can not say from memory m regard to that. I
would have to look into it. ■ .,>
The Chairman. Why did you abandon it, m 1904 <
Mr. Roberts. I was not connected with the bridge company in
1904. ., , . , -J
Mr. Reed. Youngstown is only 40 miles from Ambndge, anyway,
Mr. Chairman. i t. ^ i i
The Chairman. Do you know anything about the Uuttalo plant,.
at Buffalo, N. Y ? , , , , .
Mr. Roberts. No. I think you are probably asking me questions
which occurred during the time I had no connection with the company.
The Chairman. How about the Columbus plant at Columbus,
Ohio?
Mr. Roberts. I can only say
The Chairman (interrupting). It was a good company at the time
it was taken in?
Mr. Roberts. I can only say the pohcy of the company, which
rendered the company possible in the start, was one of consolidation
and elimination of a number of small, economical units. That was
their purpose when they came together. The formation which led
up to the American Bridge Co. was on the part of these small inde-
pendent units, who neither had sufficient capital to operate nor a
sufficient capacity. They decided the only thing they could do
would be to consoUdate, to reduce the number of their plants, and
make economical units.
The Chairman. How about the Lafayette Plant, at Lafayette,
Ind.?
Mr. Roberts. I can say the same thing of that.
The Chairman. Was it a good plant?
Mr. Roberts. Light highway work mostly.
The Chairman. That was taken into the American Bridge Co. ?
Mr. Roberts. It was.
The Chairman. Was it a bridge company any length of time
thereafter ?
Mr. Roberts. I can not answer that question; I do not remember.
The Chairman. The report says it was abandoned in 1904.
Mr. Roberts. You can see the difference in sizes when I say the
company which I was connected with, the Pencoyd Works, had a
capacity in its bridge shop at that time of over 100,000 tons a year.
If you wanted to make an economical unit, you had to do it, and
these men joined together for that purpose. It was never intended
not to reduce the number of those plants and to consolidate them.
The Chairman. Do you know anything about the Shultz plant?
Mr. Roberts. That was a plant at Pittsburgh.
The Chair:\ian. Yes, McKees Rocks, Pa. Was it a pretty good
plant ?
Mr. Roberts. The type of work it did was Ught work.
The Chairman. And the AlUwaukee plant, at Milwaukee, Wis.
UNITED STATES STEEL CORPORATION. 3305
Mr. Roberts. That was a miscellaneous work; I do not know much
about it. I never saw it.
The Chairman. Now, is it true that you sell finishing material to
the American Bridge Co. at lower prices than you charge independent
companies for the same character of material ?
Mr. Reed. What do you mean by "you" ?
The Chairman. I mean the Steel Corporation, in its intercorporate
sales.
Mr. Roberts. The Steel Corporation does not sell anything.
The Chairman. Do not the subsidiary companies make such stuff,
such material as the bridge company uses? It does not make it
from the blast furnaces, as I understand. Do you sell that at the
same price to another company as you would to a subsidiary com-
pany? Do you sell to the subsidiary companies at the same price
you sell to independents ? Do you catch my question ?
Mr. Roberts. What you mean is
The Chairman (interposing). What I mean is this: The American
Bridge Co. doesnot operate blast furnaces nor does it make angles.
Mr. Roberts. It makes angles.
The Chairman. They are like the Carnegie Co.
Mr. Roberts. There are some sizes sold by the Carnegie Co. to it.
Some sizes are sold to it by various subsidiary companies. It makes
its own steel as well.
The Chairman. Does the Carnegie Co. sell to the American Bridge
Co. at the same price as to independents ?
Mr. Roberts. It sells at market rates.
The Chairman. What do you mean by market rates ?
Mr. Roberts. Market rates.
The Chairman. Does it not sell to the American Bridge Co. for
less?
Mr. Roberts. Why should it ? No. It sells at market rates.
All intercompany business between the subsidiary companies and
the United States Steel are at market rates.
The Chairman. That is, if the Carnegie Co. has an order for
structural material from the American Bridge Co. and it has a similar
order, we will say, from MiUiken Bros., before that concern went out
of business — it would be sold to the American Bridge Co. and tO'
MiUiken, the. same material, for the same price.
Mr. Roberts. At the same market rates.
The Chairman. Would they be charged the same prices ?
Mr. Roberts. I can not tell you that. It would be the same
market rates. There are no absolute fixed prices in the steel business.
That has been one of the misunderstood things.
The Chairman. But I am not asking about that. Suppose the
American Bridge Co. wanted a certain number of girders of certain
dimensions and a certain number of I beams of various dimensions,.
and MiUiken Bros, wanted the same identical material, at the same
time?
Mr. Roberts. Yes.
The Chairman. Would you have gotten the same amount of
money from the American Bridge Co. that you did from Milliken
Bros., for the same identical thing?
Mr. Roberts. I think so. Probably the American Bridge Co., if it
had gone out into the open market, to Jones & LaughUn, for instance.
3306 UNITED STATES STEEL COBPOBATION.
or some one else, would have bought it cheaper than it bought it from
the Carnegie Steel Co. .1 tt -^ ,
The Chairman. Does the American Bridge Co. or the Umted
States Steel Corporation stand the freight on the finished bndge and
structural steel, from the pomt of manufacture to destmation ?
Mr. Roberts. How is that? ,1. tt • ,
The Chaikman. Does the American Bridge Co. or the Umted
States Steel Corporation stand the freight on the finished bridge and
structural steel, from the point of manufacture to destination ?
:Mr. Roberts. It depends entirely upon the terms of the contract
whether it is f . o. b. works or f. 0. b. destination.
The CnAiR.\rAN. What is your custom 1
Mr. Roberts. It varies with each individual contract.
The Chairman. But you do make contracts by which you pay the
freight ?
Mr. Roberts. Oh, all the time.
Mr. Bartlett. I want to inquire about that. Is that done with a
view of discriminating between purchasers ?
Mr. Roberts. Xo. It depends upon the nature of your contract.
The inquiry may come
Mr. Bartlett (interposing). In order to get the business ?
Mr. Roberts. No, sir. The inquiry may come for the price of
structural material f. o. b. cars, works; from another party it may
come for a price f. o. b. cars, for instance, delivered at Philadelphia or
Washington, D. C; from another party it may be for the pnce per
pound for structural work erected in place, set up. No two contracts
are the same in that respect.
Mr. Bartlett. If you got a contract for deUvery f. o. b. at your
works, and one f . o. b. destmation, you add the freight ?
Mr. Roberts. We add freight; that is all.
The Chairman. You were a director of this concern. Can you tell
what per cent of the structural steel business you had at the time of the
formation of this concern ?
Mr. Roberts. I think I gave testimony as to that in my previous
examination.
The Chairman. I do not recall it.
Mr. Roberts. I would refer to it. I do not want off-hand to make
a mistake. My impression is it was less than 50 per cent.
The Chairman. I think so.
Mr. Roberts. Of the entire output.
The Chairman. Did you have any real active competition at that
time ?
Mr. Roberts. Oh, j-es.
The Chairman. Who were your principal competitors at that time?
Mr. Roberts. There was the Phoenix Co., the Pennsylvania Steel
Co., the McClintock-MarshaU Co. plants at Pittsburgh and Potts-
town, ^MiUiken Bros. They are innumerable. I could give you a list
of 100 or more of them.
The Chairman. You had very active competition at the time of
the formation of this American Bridge Co. ?
Mr. Roberts. Yes. The Carnegie Steel Co. was another com-
petitor.
The Chairman. I mean at the time of the formation of the United
States Steel Corporation.
UNITED STATES STEEL COEPOKATION. 3307
Mr. Roberts. I thought you were speaking about the American
Bridge Co.
The Chairman. Oh, no.
Mr. Roberts. Now, I was speaking of the year 1900, and you are
speaking of 1901.
The Chairman. Outside of those you have given, who are the
principal competitors that did not go in?
Mr. Roberts. Those are the ones I have been naming.
The Chairman. They did not go into the Steel Corporation ?
Mr. Roberts. They did not go into the American Bridge Co. or the
Steel Corporation.
The Chairman. How did the per cent of that business, as con-
trolled by the United States Steel Corporation at the time of its
formation, compare with the per cent of the tin-plate business, we wUl
say.
Mr. Roberts. It had a greater per cent of the tin-plate business
than it had of the structural business.
The Chairman. How about the American steel and wire business ?
Mr. Roberts. It had a greater percentage of the steel and wire
business than it had of the structural business.
The Chairman. How about the rail business ?
Mr. Roberts. That I am not prepared, offhand, to say.
Mr. Chairman. What is your opinion ?
Mr. Reed. These figures are aU m evidence.
The Chairman. I do not recall it. He will probably recall.
Mr. Reed. I can give them to you.
The Chairman. Go ahead.
Mr. Reed. In 1901
Mr. Bartlett. What page ?
Mr. Reed. Page 365 of Mr. Herbert Knox Smith's report.
Mr. Roberts. The original figures, at the time of the formation,
were given to the committee, I think in Judge Gary's testimony.
The Chairman. You had a greater per cent, I believe of coated-tin
mill products, and a greater per cent of black and coated sheets and
wire rods, and wire nails, wrought pipe and tubes, and seamless
tubes. Were there any businesses in which you had a less per cent
of the output, to amount to anything, than of the structural steel ?
Mr. Reed. Pig iron for one.
The Chairman. What else ?
Mr. Reed. I do not think of any others at this minute.
The Chairman. You were a purchaser of pig iron, were you not ?
Mr. Roberts. The American Bridge Co. was a purchaser of pig
iron, yes.
The Chairman. It was the policy of the Steel Corporation at the
time of its formation to keep the price of pig iron stable, was it not ?
Mr. Roberts. It was a large purchaser of pig iron at the time of its
formation. '
The Chairman. Did it not form for the purpose of maintaining
stable prices.
Mr. Roberts. No, it
The Chairman (interposLag). My recollection is that the statement
occurs in the minutes of the Steel Corporation, or that it is stated in
the minutes of the Carnegie Co., that its policy, or the policy of the
3308 UNITED STATES STEEL COBPOEATION.
United States Steel Corporation, was to prevent fluctuations in price
of pig iron and to obtain a stable price.
Mr. Egberts. I think the pohcy of the Steel Corporation through-
out has been to maintain stable prices.
The Chairman. In pig iron 1
Mr. Roberts. In anything; aU output.
The Chairman. How many of those concerns that were com-
petitors of yours at that time are now conipetitors, who were at the
time of the formation of the United States Steel Corporation ?
Mr. Roberts. I do not follow you clearly in the term "you," and
so on.
The Chairman. I beg your pardon. What per cent of the makers
of structural steel who were m the business at the time the Steel
Corporation was formed, are in the business now ?
Mr. Roberts. They are aU in the business, and in addition a good
many more.
The Chairman. Are MilUken Bros, in the business ?
Mr. Roberts. They are being operated by receivers.
The Chairman. How many of them are operated by receivers?
Mr. Roberts. Milliken Bros, are operated by receivers. They are
the only ones I know of in that condition. I hope there will not be
more. But the number of independents have increased. I saw a
list recently which showed, I think, that the independent structural
plants had increased in 10 years from some 200 to some 400. The
percentage which the Steel Corporation's structural shops now bear
to the whole is about 30 per cent of the structural business of the
country to-day.
The Chairman. You have 30 per cent to-day ?
Mr. Roberts. Yes.
The Chairman. Have you Herbert Knox Smith's figures there ?
Mr. Reed. Of course you understand in the manufacture of struc-
tural shapes
Mr. Roberts (interposing). Not structural shapes; fabricated
structural material.
The Chairman. I mean the American Bridge Co.'s structural
material for erecting buildings.
Mr. Roberts. That is what I understand.
Mr. Young. The last year Mr. Smith gives the structural shapes is
1909.
i\Ir. Roberts. That is another matter. That is the structural
shape before fabrication — angles, beams, and so on.
The Chairman. Has this American I3ridge Co., since it went into
the Steel Corporation, done a profitable business ?
Mr. Roberts. I can not answer that question, Mr. Chairman. I
have never seen the figures.
The Chairman. Have you those figures up to the present, Mr.
Reed ? '
I\Ir. Reed. I have the figures for 1911, as stated in the Steel Cor-
poration's answer in the dissolution suit. At the present time the
competitors of the American Bridge Co. produce 70 per cent of bridge
And structural steel work fabricated in the United States,
Mr. Roberts. That was my impression.
The Chairman I know there was very sharp competition.
UNITED STATES STEEL COEPOEATION. 3309
Mr. Roberts. Mr. Chairman, just while you are there, it may be
interesting on the subject of structural material to look over this
diagram I have here showing the price of plate girder bridges for 10
years prior to 1900 and 10 years subsequent to 1900, and also the
wages- paid in bridge shops during that time. If we take the year
1900 as a basis, the wages in bridge shops paid have increased'35 per
cent, and the selling price of plate girder bridges has been reduced 32
per cent. If they get apart much farther there is going to be trouble
pretty soon. '
The Chairman. I did not quite catch that.
Mr. Roberts. Here is a diagram showing the wages paid the em-
ployees of bridge shops, structural shops, from the year 1890 to 1910;
also the price of the material which composes plate-girder bridges, and
the seUing price of plate-girder bridges.
The wages have advanced since 1900 35 per cent per day, whereas
the seUing price of plate-girder bridges has been reduced 32 per cent.
They are getting farther apart, and I do not know which is going out
of sight firet.
The Chairman. I quite agree with you. Now, you are seUing
structural shapes at a very much less price than you did in 1900.
That is, at a very much less profit.
Mr. Roberts. Oh, profit?
The Chairman. Yes.
Mr. Roberts. I think that is the case.
The Chairman. Here. is a condition of affairs that appears inter-
esting to me. Perhaps you can explain it. The dividends received
by the United States Steel Corporation on the preferred stock of the
American Bridge Co. for the last 10 years was $19,715,577.50, as
shown by the books of the company, furnished me by Mr. McRae.
The total dividends and interest of the Carnegie bonds received by the
United States Steel Corporation for the same time were $763,124,-
386.53, which gives 2.6 per cent profit for the American Bridge Co.
during that period, which is a very low profit.
Can you account, for me, for the very small amount of the earnings
of the American Bridge Co. during the last 10 years? Why it is
that this company is earning practically nothing ?
Mr. Roberts. One reason, I might say, probably, would be the
very full current rates it has been compelled to pay for its material,
to the other subsidiary companies.
The Chairman. The high price of the raw material ?
Mr. Roberts. The full market rates for raw material. In other
words, it is not purchased in the open market in competition.
The other reason would be that it has had a very fierce competition
with outsiders throughout that entire time.
I can not offhand think of anything else.
The Chairman. The price of material from which structural shapes
are fabricated is so near the selling price of structural shapes there is
no profit in it. Do I understand you that way?
Mr. Roberts. The profit is low.
The Chairman. That is, because of the lack of profit.
Mr. YoTJNG. About $1,900,000 a year was the averaa:e.
Mr. Roberts. About $2,000,000 a year?
Mr. Young. I say, $1,900,000.
Mr. Roberts. Yes.
3310 UNITED STATES STEEL. COEPOEATIOK.
The Chairman. Yes, about that.
Mr. YoxiNG. It averages a trifle less than $2,000,000 a year.
Mr. Reed. When you started on this line of inquiry Mr. Roberts
was about to take up this "old age at 40" business. Do you want
to hear from him on that ?
The Chairman. Yes. I beg pardon for interrupting you, Mr.
Roberts. I had a memorandum here about this American Bridge
Co., and I was afraid I would forget it, so I "butted in."
Mr. Roberts. I had been giving you some information with regard
to hours of labor and number of turns per week.
I now would like to offer you some statements in regard to "old
age at 40." I have here photographs representing 761 men emploved
in the various departments of the Carnegie Steel Co., both blast
furnaces and steel works.
Here is a group of blast-furnace men at those blast furnaces.
Mr. Bartlett. Mr. Roberts, will you suspend just a moment? I
would like to hear what you are about to say, but there is a Demo-
cratic caucus called to meet when the House adjourns. Some of us
will have to go.
The Chairman. I will remain, if you prefer to go on.
Mr. Roberts. I will be glad to be at your disposal.
Mr. Reed. I think; Mr. Roberts would like to have all of the com-
mittee hear what he has to say.
The Chairman. We can adjourn until later this evening, or until
to-morrow morning.
Mr. Roberts. I am entirely at the service of the committee.
The Chairman. Very well. The committee wQl stand adjourned
until to-morrow at 10.30 o'clock.
Thereupon at 4.20 o'clock p. m., the committee adjourned until
to-morrow, Thursday, February 15, 1912, at 10.30 o'clock a. m.
[Private telegraph service — conflrmatiou.]
Carnegie Steel Co. February 8, WB.
To Mr. C. L. Close,
New Yorh, N. Y.
Your 268. Open hearths start Sunday morning.
No. 1 O. H., 96 per cent men start from 9 a. m. to 12 m., 4 per cent men start from
3 to 6 p. m.
No. 2 O. H., 55 per cent men start from 9 a. m. to 12 m., 22 per cent men start from
3 to 6 p. m.; 23 per cent men start 6 p. m.
No. 3 O. H., 66 per cent men start from 9 a. m., to 12 m., 8 per cent men start from
3 to 6 p. m., 26 per cent men start 6 p. m.
No. 4 O. H., 74 per cent men start from 9 a. m. to 12 m., 10 per cent men start from
3 to 6 p. m., 16 per cent men start 6 p. m.
Weekly turn ends in all O. H. departments anywhere from 9 a. m. to 6 p. m. on
Saturday. All other departments start 6 p. m. on Sunday and finish before 6 p. m.
on Saturday. Twelve hours constitute a day's work, which men divide up to suit
themselves. Common labor rate, 17^ cents per hour; 10 and 12 hours per day. Average
daily earnings No. 1, $2.78; No. 2, $2.91; No. 3, $3.31; No. 4, $3.12; 28-inch mill, $2.64;
38-inch miU, $2.70; 23-inch mill, $2.70; 33-mch mill, $2.79; 128-inch mill, $3.02;
140-inch mill, $2.83.
(Signed) G. K. Preston.
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[Private telegraph service— telegram.]
United States Steel Corporation,
February 7, 191t.
G. K. Preston, Special Agent, Carnegie Steel Co.,
Carnegie Building, Pittsburgh, Pa
Will you please send me to-day, if possible, the time of day for sUrting and stopping
weekly turns, separately, in the following Homestead works: Open hearth, 1, 2, 3,
and 4- 23-inch mill; 33-inch mill; 140-inch plate mill; 128-mch plate mill; 38-inch
blooming mill; 28-inch blooming mill. Would like number of hours constituting
days' work; the common labor wage and the average daily eammgs for these depart-
ments based on month of October or some other representative month.
n Ti nTnaw
C. L. Closb.
[Telegram.]
United States Steel Corporation,
246J Pittsburgh, February 7, 1912—4.19 p. m.
C. L. Close: Impossible to eive you information this evening. Will wire as
Boon as possible to-morrow. ^ .^r t.
G. K. Preston.
[Private telegraph service— Telegram.)
J401 United States Steel Corporation,
Pittsburgh, February 9, 1912— S.U p. m.
C. L. Close:
Your 167. Statistics compiled some time ago, show that 6 per cent of our men work
8 hours, 35 per cent 10 hours, 5 per cent 11 hours, 53 per cent 12 hours, and 1 per cent
13 hours. Auditor Campbell gave W. J. Filbert this information on March 1, 1911.
G. K. Preston.
A. C. Dinkey, President.
Carnegie Steel Co.,
General Offices, Carnegie Building,
Pittsburgh, Pa., September 14, 1911.
Mr. J. A. Farrell, President, United States Steel Corporation,
New York City, N. Y.
Dear Sir: As per your request of August 31 for information regarding average hours
of rest and active labor for different classes of employees, I inclose herewith statement
showing the per cent of time actually worked by men working on 12-hour turns.
These figures were taken by practical men on the ground with a stop watch, keeping
the time only when the employees were actually employed performing the duties
incident to their occupation.
I also inclose details of some of the occupations in the open-hearth department,
showing just what the men do and the length of time employed on each item. We do
not have details on the occupations at blast furnaces or rolling mills, but will make an
effort to secure the same.
I attach a statement showing six-day labor plan at the blast furnaces; also a state-
ment showing percentage of men working six and seven days per week at one of our
plants — this latter statement taken during the last two weeks in August.
I am sending you under separate cover a set of photographs, taken at our various
departments, of men over 40 years of age, and of over 20 years of service, which,!
think, wiU give you a better idea of the condition of our men than could be set up in
any statement we could prepare.
Yours, truly, A. C. Dinkey, President.
UJNlTiSU BTATJiiH HTJfilfili UOKii'UKATlON. 3313
Per CGut of
Blast-furnace department: time worked.
Keeper 54. 0
First helper 51. 0
Second helper 51. 5
Clayman 50. 0
Hot-blast man 26. 0
Cinder snappers (average of 3) 53. 0
Average 47. 6
Open-hearth department:
First helper 34. 3
Second helper 63. 3
Cinder pitman 40. 5
Charging machineman 32. 5
Hot-metal craneman .: 32. 5
Average 40. 6
Forty-inch bloom mill:
Roller 40.0
Leverman No. 1 51.3
Leverman No. 2 50. 0
Heater 26.0
Soaking-pit craneman 64. 4
Average - 46. 3
Eighteen-inch bar mill:
Roller 73.0
Guide setter 61. 7
Rougher 75. 0
Intermediate 80. 0
Finisher 78.8
Hot-bed leverman 76. 0
Craneman 61. 3
Average. 72. 3
Fourteen -inch bar mill:
Roller 65.7
Guide setter 52. 5
Rougher 86. 4
Finisher 83.7
Craneman 60. 0
Transfer leverman 73. 4
Hot-bed leverman 78. 3
Average 71. 5
T-wenty-two mch mill, No. 1:
Roller 34.0
Guide setter 40. 0
Guide setter 42. 0
Rougher 80.0
Finisher 79.0
Craneman 51. 0
Average 54. 3
Twenty-two-inch mill No. 2:
Roller , 28.5
Guide setter 23. 0
Do 32.0
Rougher 65. 0
Finisher - 63.0
Transfer Leverman 63. 0
Craneman 60.0
Average 47. 8
Steel power and crew, actual worUng time Aug. 9, 1911.
S* in.
Steel pourer working heala 1 24
Cleaning up 1 32
Actual time worked 2 56
First man working heata 1 29
Cleaning up 1 35
Actual time worked 3 4
Pusher man working heats 1 29
Cleaning up -■•- 1 42
Actual time worked 3 11
Steel craneman, actual working time, Aug. 9, 1911.
Time working heats 1 15
Time loading scrap and cinder 2 7
Time on ladle 0 46
Oiling and cleaning crane 1 5
Actual time worked 5 13
Check from 6 a. m. to 6 p. m.
Hot-metal craneman, actual working time, Aug. 10, 1911.
M. M. to furnace 3 41
Oiling crane 0 49
Dumping dolomite 0 52
Actual time worked 5 22
Charging machine man's actual working time, Aug, 10, 1911.
Time charging heats 4 6
Time oiling crane 0 20
Actual time worked 4 26
Stripper man's actual working time, Aug. 11, 1911.
First man's actual time worked 2 54
Second man's actual time worked 2 55
Check from 6 a. m. to 6 p. m.
No. S8 furnace, Aug. 4, 1911.
First helper's actual working time:
Keversing and examining furnace 1 2
Making bottoms 0 20
Working heat 0 25
Taking testa 0 13
On hunch hole ; 0 8
Tapping heat 0 10
Banking doors 0 6
Help rabble on No. 37 furnace 0 25
Actual time worked 2 49
UNITED STATES STEEL COEPOEATION. 3315
Second helper's actual working time: H. m.
Getting stock for heat 2 10
Tapping heat 0 10
Working heat 0 11
Taking tests 0 15
Tapping hole... 0 20
Making bottom 0 15
Cleaning up 0 55
On apout 1 30
Actual time worked 5 46
No. 47 furnace, Aug. 7, 1911.
Cinder pitman actual working time:
On cinder pit 1 2
On tapping hole 0 9
On tapping heats 0 48
On making bottoms 0 45
Shoveling manganese in ladle 0 2
Cleaning up 0 18
Actual time worked 3 4
Stopper setter and crew, actual worhing time.
Stopper setter actual time worked 3 TS
First helper actual working time 3 39
Second helper actual workmg time 3 24
Extra men getting stoppers, loam, and cleaning up 3 48
Check from 6 a. m. to 6 p. m.
Stopper setter and crew, July 26, 1911.
Stopper setter actual time worked on ladles 3 42
First helper actual time worked 5 51
Second helper actual time worked 5 10
Check from 6 a. m. to 6 p. m.
Stripperman actual worhing time, July 27, 1911.
Stripping heats 3 46
Oiling stripper 0 26
Actual time worked 4 12
Hot metal craneman's actual working time, July 28, 1911.
Hot metal to furnaces 6 26
Oiling crane 1 27
Actual time worked 7 53
Charging machine man's actual working time, July 28, 1911.
Charging heats 3 6
Check from 6 a. m. to 6 p. m.
Steel power and crew, July 21, 1911.
Actual time worked, steel pourer 3 46
Time pouring heats 2 22
Time cleaning up 1 24
3316 UNITED STATES STEEL COBPOEATIOK.
First man: _ °- ™-
Time working heats 2 25
Time cleaning up 1 16
Actual time worked 3 41
PuBher man:
Time working heat 2 22
Time cleaning up = 1 16
Actual time worked 3 38
No. 67 furnace, July U, 1911.
First helper, actual working time:
Reversing and examinmg furnace 1 9
Making bottom 0 22
Working heat .■ 0 35
Taking testa 0 13
On hunch hole 0 18
Tapping heat 0 13
Banking doors 0 5
On ports 1 35
Actual time worked '- 4 30
Second helper:
Time on spout 1 13
Time cleaniog up 1 8
Time getting stock for heat 2 34
Time taking tests 0 13
Time on tapping hole 0 14
Time on tapping heat 0 13
Time workmg heat 0 27
Actual time worked 6 2
Check from 6 a. m. to 6 p. m.
No. 64 furnace, July 25, 1911.
Cinder pitman's actual working time:
Tapping hole„ 0 22
Tapping heats ; 0 50
Makmg bottoms 1 18
Shoveling manganese in ladle 0 7
On cinder pit 0 48
Cleaning up 0 22
Actual time worked 3 47
Steel craneman, July $1, 1911.
Working heats 3 8
Loading scrap and cinder 2 13
On ladles 1 45
Oiling crane 0 40
Eepaumg crane .' 0 45
Actual time worked 8 31
Check from 6 a. m. to 6 p. m.
UNITED STATES STEBli COEPORATION. 3317
Carnegie Steel Co., Homestead Steel Works.
Steel works: H. m.
Men, average force 7, 110
Worked 7 days (3.4 per cent) 240
Men not working 7 days (96.6 per cent) 6, 870
Men, average force, not including hospital and police 7, 075
Worked 7 days (2.7 per cent) 205
Men not workuig 7 days (97.3 per cent) , 6,870
Blast furnaces:
Men, average force 975
Worked 7 days (8 per cent) 77
Men not workuig 7 days (92 per cent) 898
Men, average force, not including hospital and police 966
Worked 7 days (7.6 per cent) 68
Men networking 7 days (92.4 per cent) 898
8.4 per cent men working 7 days, not including hospital and police.
3318
UNITED STATES STEEL COEPOBATION.
Name of plant, Clairton; period shown, April and May, 1911.
Carnegie Steel Co. blast-fumace labor— Time worked by inn
[Figure 1 denotes day turn, *-denotes night turn.]
1
OccupationXat which engaged
First month.
No.
greater part of the 2 montlis'
period. j 2
3 4 5 6
1111
* * * *
* * * *
.111
* * * *
1 1 1..
IL. 11 1
* * *!..
* * 1 *
1 .. 'i' 1
* * *; *
1 1 i! 1
* * *^ +
* * ..' *
I'i 1 1
7
8
9
10 111
ij 'i ■
1 1
} «
1 1
* *
*
i"i
1 1 .
1 ..
1 1
^ *
.. 1
1 1.
1..
1 1
21314
ri'i
1 1 1
t * *
1 1..
* .. *
f< * *
1 1 1
1 1
1 1 1
1 1 1
t * *
i< * *
1 1
1 1 1
1 1 1
15
16
'2
*
2
17
"*
*
"*
1
1
*
*
1
1
*
*
1
1
1
18
19
'*
*
1
*
1
1
*
'i
1
*
1
1
20
21
22
23 24 26
.. * *
.. 1 1
.. 1 1
*
..'i'i
* * •
2 •..
-. 1 1
.. 1 1
1 1..
2 « »
-. 1 1
* * *
'* * *
* ♦ *
1.. 1
2311
1 1
2053
First engineer. ... . - 1..
*
*
1
'i
1
*
*
1
*
*;
!
'.'.\"2
*
2"*
*
1 i
2045
2074
Second engineer 2
2091
2326
do * 1
2399
2111
.....do *..
do 1 2
2261
2041
do 1 2
Oil carrier 1 1
2141
Assistant blower * *
*
2
i
1
1
1
2143
do 1 1
1 1
* *
1)1
2232
Stovetendeis * *
2132
do * *
2302
do * *
2287
1
1
2114
do
2200
Clayman *
* * +
1 1 1 'i
* * *
I'i 1 1
* * *
* ■* * *
1.. 1 1
.111
* _. * *
* * * *
iL. 1 1
*■ + *
*i * ■*
.. 1 i 1
1111
.. 1.. 1
* * * *
1111
1111
* *\ *
i 1 1 1
1111
*
1
*
1
*
*
1
1
*
'i
*
*
1
*
1
*
1
1
*
1
1
*
*
*
1
i i
*
'i 1
1 1
1 1
1 1
* . .
i ..
1 1
*
1 i
1 ..
*
* *
1 i'
* *
* *
.. 1
1 1
1 1
1 1 1
* * *
1 1 1
1 1 1
1 1 1
1 1 1
* * *
* * *
1 1 1
1 1..
* * *
1.. 1
1 1 1
* * *
+ * *
* »
i 1 1
* * *
* * *
1 1 1
1 1 1
1 1 1
1
'i
1
"*
*
1
1
*
1
1
'*
*
»
1
1
'i
1
1
*
1
1
1
1
*
1
1
*
1
1
*
'*
1
1
«
1
1
* * *
* * «
1 1..
1.. 1
* *.,
* *'*
1 i-
!!'i"i
1 1 1
1 j 1
1 1 1
t •
'♦ ♦ »
1.. 1
.. 1 1
.. 1 1
2349
do * ..
2341
do * *
2244
Clay mixer 1
2949
Keepers * *
2047
do *
2153
do 1 1
2174
2154
do 1 1
First helpers * *'<
2123
2266
2262
2102
do * *
do 1 1
do * *
Second helpers * *
2162
2289
do 1 1
do 1 1
li 1
..1 1
*l *
1' 1
2312
do 1 1
2071
Water tender *
2072
do * ..
2180
do 1
2339
do 1 *
2240
2388
Boiler cleaner's helper 1
1 1
2036
2249
do 1
i i i i
1' 1
1 1
1 1 1
1
1
.. 1 1
2224
do
2021
Fireman * 1
111..
1.. 1 1
* .. * *
* * *
1 i'i 1
..111
1
1
1 *
1 1
* *
* *
1 -. "
1 1.
* *
.. *
* *
* *
i 1 1
. 1 1
* * ..
» * *
1
1
*
*
1
1
•*
'i
1
* « *
1 * »
"i i i
2.. •
* .. ..
2392
do * 1
2067
do 1 *
*
*
* 1
2346
do 1 *
*
2149
do * 1
i
1
1
2883
do * 1
2329
do
2036
do 1 *
* * * *
* * *
111!;
* * * *
..111
* * * *
*
1
*
*
*
*
1
*
*
1 1
1 1
1 1
1 1.
1..
.. 1
1 1..
1.. 1
1.. 1
. 1 1
1 1 *
1 1 1
*
*
'*
1
lie
*
1
*
1 1 1
1 1 1
1 1 1
1 1 1
« * *
1 1..
2389
do 1 *
2212
Power-house engineer l 1
2369
do 1 *
2151
2122
do 1 *
2360
do
2374
do * 1
1.. 1 1
1 1 .. 1
* .. * *
* '* * *
1111
* * *
i 1.. 1
* * * *
* * *
* * « "'
* * * *
1111
1111
* * *
1 1 i 1
111..
* *.. *
1
*
*
1
*
1
*
1
*
*
"i
1
*
*
*
*
2
i
*
2
1
1
*
1
*
* *
* *
1 ..
1 1
* * a
.. 1
* * <
1 1 ]
1 1 ]
1 1 1
1 1 1
¥ *
* '*
I 1 1
1 1 1
1 2
t *
i..
-. 1
. 1
1 i<
1
1
*
1
i
1
1
1
*
♦
1
'*
1
1
'*
*
1
*
i
1
1
1
1
*
*
1
i * *
1 ••
:: li 1
1 •;■*
\v>
* *' *
* t •
1 *:
* * *
1 1 1
.. 1 1
* »..
« » •
iCm
Condensing engineer *
2168
2037
do '' 1 2
Pnmp-hnn.qft pnginppr , , [ 1
2039
2012
2284
2027
21C3
2060
2306
2258
do 1 *..[
Pump-house oiler 1 *i
do *..
Larryman * *
do * *
do * *
2227
2191
S280
2194
2*81
do 1..
do * *
do 1 1
do 1 1
do * *
1' i:..l * *, •
* *i i: I-.. 1
•' i| *i *i * *
1. 1| * * * .
* * 1' il 1..
* "* *
1 1; 1
* -.1 *
* ♦! *
1 i' 1
COBPORATION.
3319
who were on pay rolls greater part of the 2 months' period.
[Figure 1 denotes day turn, * denotes night turn.]
First month— Con.
Second month.
26
27 282
* *
)3031
Total
turns.
1
1
2
1
3
4
5
1
6
7
1
8 9
;
10
11
*
12
13
*
14
15
16
1
17
1
18
1
19
1
20
1
21
22
23
*
24
*
26
*
26
27
*
28
29
1
30
31
1
Total
turns.
15
1: 1
*
27
1
1 1
2bi *
*
*, +1 +
1
1
1
*
*
*
*
*
1
1
1
1
*
*
27
1
1 1 .
.2 ..
26
*
*
* *1 *
1
1
"2
1
1
1
1
1
1
1
'2
*
*
27
*
* * .
- 2 ..
255
1
1' li 1
"2
*
*
2
■-', 1 1
1
1
"2
*
*
*
2
1
26
1
1 .. '
1 2 ..
27
*
*
*i *
i
1
i
9
*! * *
*
1
1
1
1
2
"*
*
26
*
* -
25
1
1
ij 1':;
'2
*
*
*'
1 1
1
1
'2
*
*
*
*
1
1
27
*
'* *
26
1
1 1 1
2
*
*
* ""
1
1
'i
2
*
*
*
"i
26
1
.. 1
25
*
+
*■ 1 *
1
i;'2
* *
*
*
"i
1
2
*
"*
27
1 1
i'i'.'.
27
*
*
j'*l *
1
"i
1' 2
* *
*
*
1
"i
2
*
26
i
1 1
11..
26
1
i
1 1
"i
1
1
1' 1
i
1
1
'i
1
1
1
1
"i
26
«
* *
* * ..
28i
*
*
*
1
1
1 f.
li'i
1
*
*
*
+
if
*
27i
1
1 1
1 1 '.'.
30
1
1
'2
*
*
*' +
*
*
'*
*
1
1
1
1
i
29
1 1
11..
28
1
1
i
*
*
if
*
*
*
*
*
i
1
1
1
i
1
1
27
'#
* * .
*
27
*
*
*
1
1
1
1
i
*
*
*
*
if
*
*
27
*
*
* * ..
26
*
*
*
i
1
1
i
1
1
1
*
*
*
*
*
*
*
27
1
1 "i
22
1
1
1
1;..
1
1
1
1
i
1
1
1
1
1
27
'\
1
1
'i
'i
i
i
1
1
1
1
1
1
i
if
1
*
1
*
1
*
*
1
*
1
*
20
"*
* " '
* * .'.
"25"
'i
27
1
1 i .
23
1
1
"*
*
*
*
*
it
*
1
*
1
1
1
*
26
* *
26
*
*
*
1
"i
1
1
1
1
1
*
*
*
*
*
"*
*
27
i
1 1
25
1
1
1
1 1
1
1
1
1
'i
1
1
i
1
1
27
*
* *
'* "
26
*
*
*
1
1
1
1
*
if
*
*
'*
*
24
*
* *
* "
23
*
*
*
*
i
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1
1
1
1
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*
*
*
'*
26
1
1 1
i 1 ..
26
1
1
*
*
*
«
*
*
*
'i
1
1
"i
1
1
26
1
1..
1 1..
25
1
i
1
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1
1
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1
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1
1
1
1
27
«
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* * ..
26
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1
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1
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if
*
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26
*
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26
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1
1
1
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♦
*
if
*
*
27
1
i 1
263
24
1
1
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^
*
1
1
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1
1
1
1
26
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*
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*
1
1
1
1
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if
if:
*
26
*
* *
24
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1
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if
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if
24
1
1 1
26
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26
1
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26
1
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1
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1
1
26
]
1..
1 1
2^
25
]
]
I
*
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1
1
1
1
if
*
*
21
1
K
91
*
1
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1
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if
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27
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25
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25
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26
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26
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25
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26
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24
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26
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26
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26
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26
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24
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1
*
*
if
' *
*
*
*
..
26
1
1 '.'. .
24
1
1
1
*
*
*
*
*
*
'*
*
1
1
1
i
1
1
1
1
27
1
1 1
25
1
1
*
*
*
"*
*
*
*
1
1
1
"i
1
1
1
26
*
* *
26
*
'*
i
1
1
1
'i
1
1
1
*
*
*
*
*
«
"*
*
if
26
1
1
23
i
1
■1
1
*
*
*
*
*
1
1
1
1
1
1
1
1
..
24
1
1
26
1
1
1
*
*
*
"*
*
*
*
*
*
1
1
'i
1
..
1
1
'i
1
'i
27
* »
* * .'.
25
*
*
'*
1
1
1
i
1
1
1
i
1
*
*
*
*
*
*
*
i*
26
17042— No. 50—12-
3320
UNITED STATES STEEL CORPOKATION.
Carnegie Steel Co. blast-furnace labor— Htm worked by men u
Occupation at which engaged
greater part of the 2 months'
period.
First month.
Check
No.
1
1
1
1
1
1
1
1
*
1
*
1
1
2
3
4
*
*
*
1
1
1
1
*
*
1
i
1
*
if
5
6 7
i 1
.1 »
1 1
..1 1
1, 1
:i:
1 1
s
9
1
1
*
1
1
'*
i
2
2
2
2
2
i
i
*
1
*
*
10
11
1
1
1
1
*
1
1
i
1
+
1
*
*
1
1
*
12
l:
*
1
*
1
i
L4
1
1
1
16
1
1
*
1
'*
1
1
*
1
*
*
1
«
1
1
1
*
1
1
1
1
*
i
*
*
1
*
10
*
1
1
i
*
i
*
2
1
*
1
1
1
■It
*
i
i
*
+
i
*
*
17
*
*
18
*
*
1
i
1
*
1
*
1
1
"*
1
1
1
'♦
*
1
1
1
*
1
1
1
*
*
*
*
*
IS
*
'i
1
1
,*
1
*
1
1
*
1
1
*
1
1
1
*
i
1
*
1
1
1
*
*
*
*
i
*
*
.0
i
1
1
*
1
*
1
*
1
*
1
1
1
*
*
*
*
*
*
*
*
*
21
*
*
i
1
1
*
1
1
*
1
*
1
*
i
2
*
*
•
1
1
1
*
1
1
1
*
*
'*
i
*
22
»
*
1
1
1
23
1
1
*
*
i
24
1
2203
(io *
1
2362
do
2385
do
2031
1
2032
Ladle liner helper
1
2256
*..
1 2
1*
*
ir
*i
11..
♦
1
2342
*
2372
First levennan
11 * *
2255
do
1 1
1 1
* *
..ii
*
*
2292
2268
do
tit
*i *
*, ♦
*' *
1 1
*
2263
Pie znaclLiiie heluer
1
2035
. . do
1| 2 »
2013
Ladle patcher foreman
..i 1
1
2356
* * *
1: l' 1
.-111
1.1
*i * *
1 1 1
*
2288
do
1
2361
do
l! 1
1 1
1
2241
..do
* *
i; 1
1 1
V
2304
do
1
*
2178
1
1
1
1
1
*
1
i
'*
+
*
1
"*
'i
'i
1
'*
1
1
V
2024
Pipe fitter helper
..' 1
* #
i] 1
1, 1
1
1
*
1
1
*
*
*
*
*
1
1
*
1
1
*
*
*
i
*
*
1
2101
Millwright
1
2277
*
2075
Larry man
1 1
1 1
* *
*
2079
do
*
*
2107
do
1
2214
.do
1
1
1
1
*
1
1
1
2208
do
1
1
1
"i
1
i
1
*
1
*
*
*
*
*
1
2332
do
1
2181
do
1
2136
do
*
2308
2216
Scrap man ...
2139
2386
do
1
*
*
1
1
*
*
..1 1
* *
i! 1
1: 1
* *
*' *
*
*
i
*
*
1
1
!(:
1
]
]
if
*
*
1
1
*
*
1
1
*
*
*
1
1
+
1
1
"i
1
*
1
1
*
I
1
*
*
1
)
1
'*
1
1
*
2313
2029
*
2076
Cagers.. . .
1
2036
2116
do
1
2352
do
2237
2094
Skip hoist
1
1
*
*
*
1
*
1
1
*
*
*
1
)
1
If
1
*
*
*
*
1
)
1
*
*
i
*
1
*
1
1
1
*
1
*
1
1
1
'i
+1 *
♦ ♦
1, 1
T
2097
1
1
2096
2129
do
do
*
2242
Top man
*
1
if
1
*
1
*
1
*
2334
...do..
2057
do
2173
2008
Ore bridge operator
1
I
*
1
1
1
]
*
1
*
1
1
*
i
if
1
*
1
*
■1
*
1
*
*
*
i
1
*
1
1
*
*
1
*
1
*
*
1
*
1
1
*
*
1
1
*
*
1
*
1
1
*
*
1
*
2274
2336
Ore bridge oiler
* *
1 I
2276
do
*
2223
Ore bridge laborer
1
2230
*
UNITED STATES STEEL OOEPOEATION.
were on pay rolls greater part of the 2 months' period — Continued.
3321
First
month— Con.
Second month.
26272!
529 3031
Total
turns.
1
*
*
*
1
*
1
1
,1
1
■■■1
*
"i
■*
1
1
*
i
1
1
*
*
*
2
*
*
1
1
1
1
*
i
'i
1
1
*
1
*
*
1
i
1
'i
i
'*
"i
*
'i
1
1
*
*
*
1
i
*
1
"*
1
3
'*
'i
1
1
'»
'i
i
1
1
*
■*
1
!,i
1
1
*
1
'*
1
1
i
1
1
*
*
'i
*
1
*
1
*
4
*
i
'i
1
*
1
1
"i
'*
1
*
*
*
*
1
"i
i
1
*
1
5
*
1
1
1
1
'*
it:
1
1
'i
1
1
*
1
*
*
1
1
1
'i
*
1
'i
'*
1
1
*
'i
1
*
*
'i
"i
*
1
'i
*
1
6
*
+
1
1
1
1
..
'*
*
1
1
i
1
1
1
*
'i
1
1
1
i
'i
■»
1
1
*
'i
'i
■*
1
'i
«
1
*
1
i
7
1
1
*
2
2
'i
"i
1
■*
*
*
1
*
i
*
*
1
'*
*
'i
1
'*
1
*
1
*
1
*
8
1
1
*
*
1
1
'i
*
'*
1
1
1
*
1
1
*
*
1
'i
*
1
*
*
*
1
1
1
*
'i
i
f
9
1
1
*
*
1
1
'i
1
"*
"*
1
1
1
*
1
1
*
*
*
'*
'*
'i
'*
1
*
*
1
1
1
*
"*
1
1
1
1
1
1
10
*
*
*
111
1
"*
"i
1
i '
1
*
*
"i
i
*
1
1
*
*
*
* .
i
*
'i
* -
* '
*
1
1
1
1
1
1
1
1
213
1 1
1 1
* *
f *
1 1
1 1
i 'i
1 1
* *
* *
* ■*
1 1
1 1
1 1
* *
1 1
1 1
*
* *
* *
*
* *
1 1
* *
i i
* *
1 1
*
*
* "*
1 1
1..
. 1
* *
1 1
1 1
1 .-
1 1
1 1
1 1
14
*
1
1
i
*
*
"i
i
*
*
*
*
1
*
i
*
*
1
"*
*
"i
1
*
'*
'i
i
15
*
*
1
1
1
1
i
*
*
■*
1
1
*
1
i
1
*
*
*
*
*
1
"*
'i
*
*
1
*
*
1
1
1
*
'i
1
1
1
1
1
16
*
*
1
1
1
1
i
'*
'*
1
1
*
1
"i
*
*
*
'*
■*
'i
■*
1
*
*
1
1
1
*
*
1
1
1
1
1
1
17
*
:
:
1
*
'i
*
*
*
1
1
1
*
1
1
"i
1
1
18
*
"i
'i
1
"i
*
1
'i
1
1
1
*
*
*
*
'i
*
'*
"♦
i
"*
*
*
1
1
1
+
*
1
1
1
1
1
1
19
*
*
1
1
1
1
'i
1
*
1
'*
1
1
*
1
1
1
*
*
"*
1
*
"i
*
*
1
"*
*
1
1
"*
*
1
1
1
1
1
1
20
*
*
1
1
1
1
"i
1
*
*
■*
1
1
*
1
1
1
"*
*
*
*
1
i
*
He
1
'*
■*
1
'i
*
"*
1
1
1
1
1
21
1
1
*
*
2
2
22
1
1
*
*
1
1
1
*
*
*
1
1
1
1
1
*
'i
*
1
1
*
i
1
1
*
23
1
1
*
*
1
1
'*
*
*
*
1
1
"i
1
'i
"i
"*
'i
*
"i
1
1
*
*
*
1
'i
i
I
i
24
'i
'*
1
1
*
*
*
*
25
1
"*
'i
1
*
1
1
i
1
'i
*
1
'i
1
*
1
i
'i
'*
i
1
1
1
*
1
"i
1
1
1
1
1
1
26
27
1
1
*
*
*
28
1
1
*
*
1
1
"i
*
i
1
1
1
1
*
1
"i
'*
1
1
'i
1
■*
1
'i
29
*
1
1
1
1
*
1
1
'i
1
1
*
1
*
*
1
1
"i
1
*
'i
*
1
1
*
'i
1
1
*
1
"i
1
1
1
1
1
30
*
*
1
"i
1
*
'i
'i
1
1
*
1
*
*
1
1
'i
1
i
i
'*
'i
*
i
1
1
1
"*
1
i
1
1
1
1
1
31
'*
i
1
1
"*
'i
i
1
*
1
"*
1
1
1
1
1
*
1
'*
1
1
"i
'*
'i
1
1
1
1
1
Total
turns.
.. 1
1..
.. *
*
I'i
1 1
* *
1 1
1 1
* *
1 1
* *
.. 1
*
i..
* *
* *
* *
1 1
.. 1
I 1 *..
11*..
* * 1..
t * *
I 1 .. ..
1
(= ♦
1 1;: '.;
1 1.. ..
t *
1
I!
1 i.. ..
* *
1 1;; :;
*■*■*"
* «
1 1 i..
111..
1
26
26
25
2S
25
25
25
24
25
25
20i
26
25
22
25
25
24
26
26
26
24
22
26
26
26
25
25
25
24
25
26
25
20
25
25
26
24
27
26
26
27
27
"ii"
26
26
26
24
1 1
I'i
* *
* *
1 1.. ..
1 1 1..
1 1.. ..
* *
* *
* *
. i'i!!
1 1 .. ..
1 1 1..
111..
.11..
* * »
1 1.. ;;
111..
27
27
27
26
24i
27
26
24
25
26
27
25
23
26 '
21
25
26
26
25
26
25
*
'* *
1 2.. ..
* * *
1 1 i!.
.11..
* * *
"27"
26
27
2G
27
1 1
1 1
* *
* *
* *
1.. 1..
1 1.. ..
* * .. ..
* "* ""
'* * "
ill..
25
25
23
25
26
26
20
27
25
27ft
22
27
26
24
*
1 i
1 1
* *
.. 1
* »
* * *
111!!
1 1 *..
. * 1..
1 1 *..
* *
26
26
25
26
26
25
26A
3322 UNITED STATES STEEL CORPORATION.
[Telegram.]
United States Steel Corporation,
Johmtovm, February 7, 191i.
C. L. Close:
No changes now, our letter October 23d. Five per cent total number of mi
working 12 hours. ^ „
3.49 P. Daniel Coolidgb.
(Telegram.)
United States Steel Corporation,
Daniel Coolidge, February 7, 19U.
President, Lorain Steel Co., Johnstown, Pa.
Are there any modifications or changes in statement your letter October 23, regardj]
6-day week labor. Please give me percentage of total men employed workii
regularly 12 hours per dav. „ ^ „
C. L. Close.
The Lorain Steel Co.,
Johnstown, Pa., October 23, 1911.
Mr. C. L. Close,
United States Steel Corporation, New York, N. Y.
Dear Sir: Answering your favor of the 19th instant, I desire to say that the f(
men which we had in our employ which were working over six days in a week wc
reduced to six days some eight months ago, and in view of the very small number
men which were so working it did not change any the description of our work.
Yours, truly,
Daniel Coolidge, President.
The Lorain Steel Co.,
Johnstown, Pa., September IS, 1911.
Mr. J. A. Farrbll,
President United States Steel Corporation, New York, N. Y.
Dear Sir: Answering your favor of the 31st ultimo:
I am inclosing herewiui statement of the average working conditions of to-ds
Extraordinary conditions will alter this schedule in the case of individuals and oc(
sionally in departments.
Generally speaking, overtime is eliminated and night turn taken off in the swit
works, frog and crossing department, electric department, and pattern shop duri
the months of November, December, January, February, and March. The stateme
shows the working conditions from April 1 to November 1.
Trusting that this will meet your requirements, I remain.
Yours very truly,
Daniel Coolidge, President,
UNITED STATES STEEL COEPOEATION.
The Lorain Steel Co.
[Sheet 2, Continuation of letter.]
3323
Day turn.
II
r
ID B
if
a-
03 M
ll
^^
Night turn.
a*
ma
n
SI
o<(i
II
ll
^1
5^
Pattern shop
Sw. Works & F. & X. department. . . .
Electric department : -.
Ufechanicaf department
Steam^department
Steel foimdry
Open-hearth furnaces —
Melters and helpers (S)
Stoeker(3)
Charger (2)
Ladlemen and helpers (6)
Crucible-tumace men (2)
Cleaning room-
Sand-blast men (20)
Blacksmiths and helpers (6).
Chippers (30)
Laborers (138)
Annealing furnaces (3)
Ifolding floor—
Holders (101)
Holders' helpers (39)
Coremakers (28)
Cranemen (18)
Iron foundry
MoldeiB(33)
Melthig(3)
Cleaning (10)
Coremakers (14)
Laborers (20)
J. &S. O.K. R.:
Operating department
Track department
Track-welding department
Ingleside Mine
9
7i
None.
5
None.
12i
12J
12}
12
12
12}
12}
12}
12
12
63}
63}
63}
60
72
None.
None.
None.
S
None.
8i
8i
None.
None.
None.
None.
None.
None.
None.
None.
None.
5
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
72 j None.
72
72^
None.
None.
None.
None.
None.
None.
None.
72 ' None.
6
None.
None.
None.
None.
75
705
17
50
20
400
74
25
1,463
[Telegram.]
United States Steel Ookpokation,
Pittsburgh, February 7, 191^.
C. L. Close:
Statement accompanying iny letter of Oct. 26th is correct, requiring no modification
or change.
E. W. Pargnt.
(Telegram.)
United States Steel Cobpoeation,
February 7, 191t.
E. W. Pargnt,
President American Sheet & Tin Plate Co.,
Frick Building, Pittsburgh, Pa.
Are there any modifications or changes to make in statement letter October 26,
regarding 6-day week?
C. L. Close.
3324 UNITED STATES STEEL COKPORATION.
American Sheet & Tin Plate Co.,
Mr. C. L. Close, Pittsburgh, October g6, 1911.
Committee of Safety,
United States Steel Corporation,
71 Broadway, New York, N. Y.
Dear Sir: Referring to your letter of October 29, I am inclosing herewith a state-
ment which shows the number and percentage of employees working in and around our
various plants 8, 9, 10, 11, and 12 hours per day.
With respect to the elimination of the 7-day week, we have had but little to do in
that direction, as the only men generally employed in our works during seven days
are watchmen, water tenders, etc.; and these throughout our company would not
aggregate more than 2 per cent of the total.
I feel certain that the inclosed statement giving data relative to number and per-
centage of men working 8, 9, 10, 11, and 12 hours per day will prove very interesting
to you.
Yours, very truly,
E. W. Pargny, President.
UNITED STATES STEEL COBPOEATION.
3325
s
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3326
UNITED STATES STEEL CORPORATION^.
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UNITED STATES STEEL COEPOKATIOX.
[Telegram.]
3327
United States Steel Corporation,
Chicago, February 9, 191g.
C. L. Close:
The average for 1911 of 12 hours, so-called turn men, was 30 per cent of total number
of employees. This includes construction men. Of men employed in operating,
35 per cent work regularly 12 hours.
E, M. Eager.
Universal Portland Cement Co.,
Chicago, November?, 1911.
Mr. C. L. Close,
Committee of Safety, United States Steel Corporation,
71 Broadway, New York City.
Dear Sir: In reply to your letter of the 20th, I am pleased to say that we have put
in operation the six-day week completely, with the single exception of the operation
of all our kilns on Sundays. This has been accomplished by the expenditure of large
sums of money at each of our plants — Nos. 2, 3, 4, and 5 — for additions and alterations,
as well as the greater investment in our new plant No. 6, which is just comii^ into
operation. It was necessary to increase the equipment in our raw-material mills and
the capacity of our finishing mOls so as to prepare the amount of raw material and to
grind the clinker in six days that was formerly done in seven. In other words, an
addition of one-sixth more work each week day.
It was necessary to provide storage facilities at each plant to store raw material to
run the kilns 24 hours, aggregating over 10,000 tons.
This plan is working very satisfactorily, with the result that no men work on Sundays
except those necessary for the operation of the kilns, which must be operated without
interruption.
Our best practice shows that 75 or 80 per cent of our force are off on Sundays, and it
is compulsory for the majority that work on Sunday to take a day off during the week.
We have been working this out gradually and find that it works very well.
In regard to hours of labor, I hand you herewith copy of statement recently furnished
Mr. Parrell on this subject.
I trust this gives you the information you desire. If not, I will be pleased to have
you advise me.
Yours, very truly, Edward M. Hager, President.
Universal Portland Cement Co.
Men on 12-hour turns.
Number
of hours
active.
Remarks
Tube mill operators
Ball mill
Scale operators
Hopper men
Ball and tube mill helpers
Slag and stone drier feeders
Slag-drier firemen
Stone-drier firemen
Slag-drier men
Stone-drier men
Burner men
Burner barmen
Fuller mill operators
Firemen in coal house
Kent mill operators
Kent Tnill helpers
Stock-house man
General labor
Mill handy men, R.M.& F. M
Mill handy men, B. B
Mill maclnnists
Oilers
Clinker crane operators
2 electricians
Men on 10 hour turns: cement packers
Helping foremf u 3 hours.
Hard work.
Do.
Do.
Rest of time watcliiuj
3328 UNITED STATES STEEL CORPOBATION.
Universal Portland Cement Co,
Chicago, October SO, 1911.
Mr. J. A. Farhell,
President, United States Steel Corporation,
71 Broadway, New York City.
2 Dear Sir: I regret the delay in replying to your letter regarding the number^of
hours of active labor of the employees of this company. _
We have made a number of observations in trymg to determme as accurately as
possible the time that the men are actively occupied in the various positions.
The operating men in the plant are theoretically always on duty, but as most of
the appliances are practically automatic, there are few positions requurmg hard
physical exertion. The work consists mostly of adjustmg feeds of and lubncatmg
the machines and cleaning up around same, in the performance of which they are
active the number of hours shown on that attached statement, the rest of the time
they are watching the machinery.
The cement packing comprises the hardest physical labor of any occupation around
the cement plant, and the packers are allowed, as a rule, during the hot weather
season an extra man in a gang of six, and the natural delays due to movmg cars and
setting empties at the packing rooms, and otherlincidental delays, give them all
occasionally a few minutes rest.
We have not included the machinists working in the shop, as they never have hard
physical labor; the only mechanics who have to work hard are repair men out in
the mill in cases of breakdown, which of course, are not of frequent occurrence.
Our plants are now so arranged that 75 or 80 per cent of our force is oft on Sundays,
and it is compulsory for the majority who work on Sunday to take a day oft during
the week. We are planning this out gradually and find that it works out very well.
I will be pleased to furnish any further information on this matter if you so desire.
Yours very truly,
Edward M. Hagbr, President.
[Telegram.)
United States Steel Corporation,
Duluth, Minn., February 7, 1912.
C. L. Close!
Only men working 7 days a week and 12-hour shifts are pump men and firemen;
percentage to total labor employed 8J per cent. Others QIJ per cent.
W. J. Olcott.
[Telegram.]
United States Steel Corporation,
February 7, 191$.
W. J. Olcott,
President Oliver Iron Mining Co., Wolvin Building, Duluth, Minn.:
Will you please advice to what extent 6-day labor has been put into effect in your
company? would like percentage of total men employed working regularly 7 days
per week. Also percentage of total men employed working regularly 12 hours per
day.
Oliver Iron Mining Co.,
General Offices, Wolvin Building,
Duluth, Minn., September 14, 1911.
Mr. James A. Parrell,
President United States Steel Corporation,
Empire Building, 71 Broadway, New York, N. Y.
My Dear Sir: I acknowledge herewith receipt of your favor of the 6th instant,
asking for statement showing the average hours of rest and active labor of the difierent
classes of employees of this company.
It is my understanding from your letter that you desire to ascertain the actual
hours of continuous labor that our various employees work while on duty as compared
with the time of rest while he is on such duty.
Owing to the nature of our mining operations, it is very difficult to secure such infor-
mation. I inclose, however, a classification of our labor, divided into surface and
_ COEPOEATION.
3329
underground, and showing the hours of labor for which the various classifications
are paid each day, and the number of hours of rest that they have outside of the day's
labor. The working day consists of 10 hours, with the exception of firemen and
pump men, who of necessity relieve in place, and eight-hour shift for miners and others
sinking shafts in wet places where we use an eight-hour shift, the men relieving in
place.
In our underground work none of our men actually work over eight hours, for the
reason that, after blasting, the men are not able to go back into their drifts and stopes
until the smoke has disappeared, and during such times they of course rest.
We have no strenuous occupations where men work under oppressed or disagreeable
conditions. Our mines are all well ventilated and we do not have the gases that are
encountered in coal-mining operations.
In our steam-shovel operations, while the work is active during the actual loading
of trains, ttiere is always an intermittent period of a few minutes while the loaded
trains are. going out and empties are being put in.
I do not know of any of our employees who are overworked or who do not have
ample rest during the 24 hours of the day.
If the above does not give you the information in exactly the form that you desire
it, I will be glad to endeavor to furnish such additional data as you may indicate.
Very truly, yours,
W. J. Olcott, President.
Classification of labor.
Class ol labor.
Hours of—
Labor.
Rest.
10
14
10
14
10
14
10
14
10
14
12
12
10
14
10
14
10
14
12
12
10
14
10
14
10
14
12
12
10
14
12
12
10
14
10
14
10
14
10
14
10
14
10
14
10
14
9 to 10
14 to 16
Remarks.
T/Tiderground.
Mining captains
Shift bosses
Miners
Timbermen
Trammers
Pumpmen
Skip tenders
General underground laborers
Surface.
I/Ooomotive engineers
Locomotive firemen
Locomotive brakemen
Steam-shovel engineers
Steam shovel cranemen
Steam-shovel firemen
Stationary engineers
Stationary firemen
Switchmen
Machinists
Carpenters
Blacksmiths
Masons
Teamsters
Common laborers
Office men
Relieve in place.
Do.
Do.
Oliver Iron Mining Co.,
General Offices, Wolvin Building,
Duluth, Minn., August 9, 1911.
My Dear Sir: Replying to your favor of the 5th instant, asking for certain infor-
mation regarding the nationality of our employees, their living conditions, improve-
ments made to better their condition, policy of housing, etc., I beg to inclose herewith
statement compiled as of February 1, 1911, covering nationalities at all of our mines
on the various ranges, from which you will see that the great majority of our employees
are of foreign birth. I also send you detailed statement as of April 3, 1911, showing
the number of dwellings, boarding houses, and camps at each of our mines on all of
the ranges, together with the number of men housed and percentage of employees
housed. 'j^
I am satisfied that the living conditions at all of our mines are such as to bear inves-
tigation and will compare very favorably with those furnished by other companies
in the various districts in which we are operating. These conditions have been very
3330 UNITED STATES STEEL COEPOBATION.
much improved since the organization of the steel company, in that we have erected
hundreds of houses for our men which are designed to meet the varying conditioiB and
Bizes of families. These houses are well constructed, warm, and kept in first-class
condition. We have made special efforts to see that the houses and surroundings are
kept in a clean and sanitary condition. The rents charged for these houses are very
reasonable as compared with the prices paid for similar houses owned by other peqile.
Our rule is to charge $1 per month for each $100 invested in the house; this does not
include the value of the lot. We keep the house in repau-. The policy Of furnish-
ing good houses at a reasonable rental enables us to keep a better class of men than we
would otherwise obtain. Furthermore, where our operations are located at some dis-
tance from towns and villages, it is absolutely necessary for us to own these houses.
I might say that the houses that we have erected are of a much higher grade and
more artistic than those that were used in previous years. Furthermore, wherever
electricity is available these houses have been wired and are lighted by that means.
At many points we have planted trees and shrubbery, graded streets, and endeavored
to a reasonable extent to beautify the surroundings. Wherever possible, we have
furnished our mine locations and houses with city water, and a large number of our
houses are provided with bath and toilet rooms. During the past few years we have
also erected greatly improved change houses where the men can leave their clothes
and wash. These buildings are put up as nearly fireproof as possible, lighted by
electricity, have concrete floors and sanitary conditions for washing, and are also
provided with shower baths and steel lockers in which the men can keep their clothes
under lock and key. We have found that the men have taken very kindly to the
use of shower baths, and it has proved a great success.
At several of our more important points where we have large shops, as at Virginia
and Hibbing, we have put up separate buildings where machinists' helpers and other
employees can have steel lockers and a suitable place in which to wash and bathe.
This policy has proved very satisfactory and will undoubtedly be further extended.
At some of our larger engine houses we have put in toilet rooms and washing facilities.
As to what the foreigners have done to better their own condition, would state
that on the older ranges they have to a large extent built and improved their homes
and surroundings. But this is not true on the Kissabe Range, where so much of
our labor is what we call common labor employed around the open pits. In this
locality the efforts that haxe been made to improve their condition have princijjally
been started by ourselves. We have been quite successful in our efforts at times
when labor was very plentiful, but when we are operating to full capacity and men
are scarce they prefer to live in poorer houses, with a number of men crowded into
one house, and under conditions such as we do not approve of.
I am' positive that the living conditions prevailing at all of our mining districts
are far better than those that prevail in other mining districts of the United States
and that more has been done to furnish employees with comfortable, sanitary, and
attractive homes than in any mining community with which I am familiar.
In regard to educational facilities, there is no place where they have better buildings
or equipment or teachers than on the iron ranges. The school population at all of
these mining towns increases very rapidly, and it has required large expenditures
for the erection of buildings to furnish adequate school facilities. In the majority
of these schools we have not only the graded courses and high-school courses, but also
domestic science and manual training. Books and other material are furnished free.
It has been the policy of our company to approve of and encourage the upbuilding
of the school systems at all mining points.
At two points, viz, Hibbing and Virginia, we have erected clubhouses and furnished
the same for employees. These were started several years ago and have proven very
satisfactory as furnishing desirable quarters in which the men may spend their spare
time in the way of amusement, social intercourse, reading, etc. Some place of this
kind is absolutely necessary, otherwise the men will go to saloons and other places.
The results secured at these two points are so satisfactory that we shall, when business
conditions improve, advocate and recommend the erection of similar buildings at
other important mining districts.
"' It has been our policy to render substantial assistance to Y. M. 0. A. and to all
chui'ches, regardless of denomination.
We have this day sent Mr. Close a long telegram covering certain expenditures
that have been made for improving the condition of our employees and whicn I under-
stand was for your information.
Trusting this will give you the desired information, I am.
Very truly, yours,
W. J. Olcott, President.
Mr. J. A. Farrell,
President, Empire Building, 11 Broadway, New York City.
:OEPOEATIO]Sr.
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UNITED STATES STBEXi COEPORATION.
Dwelling and boarding houses, Oliver Iron Mining Co.
3335
Mine.
Dwelling.
Boarding
houses.
Camps.
Number of men —
Housed.
Employed.
housed.
Uenominee:
ChaDin
146
13
32
22
S
8
23
3
8
161
12
82
48
12
1
1
790
404
176
114
95
1
2
20.4
3.0
Riverton.
1
1
1
46.6
42.1
12.6
Iron Ridge ^
100.0
50.0
1
Cuff
260
4
317
1,582
20.0
Marquette Range:
186
26
2
21
3
100
203
26
2
467
49.0
389
Mitchell < .
26
7.2
piatti
i
1
13
20
X
1
76
43
1
1
2
100.0
17.3
46.6
Total Marauette Ranee
342
4
292
975
30.0
Gogebic Range:
103
5
12
1
12
35
21
2
1
172
8
11
1
43
85
39
6
1,575
298
196
1
54
106
63
80
10.9
Tilden
2.7
Atlantic
5.6
100.0
1
1
79.6
80.2
61.9
Plumer . ... . . .
1
7.6
Total Goeebic Ranee
191
4
365
2,373
15.4
Vermilion Range:
28
4
4
1
62
64
17
9
1
20
480
312
195
40
203
11.2
Zenith... .
5.4
Sibley
4.6
2.5
Soudan .
8
9.8
Total Vermilion Range
99
8
101
1,230
8.2
Chisholm district:
Monroe ....
48
3
15
41
24
16
46
6
5
1
1
112
26
3
80
60
30
171
13
9
318
379
299
223
336
76
337
1
1
36.0
flhiRhnlm
6.6
1.0
Glen
36.0
Leonard
3
3
18.0
Myers
40.0
2
5
1
51.0
St Clair
Pill«!hi]rv
Total Chialiolm district
204
6
10
603
1,969
26.5
Vii«nla district:
1
1
1
6
400
160
459
1
140
Virginia
21
24
3
2
3
4
56
42
25
1
29
13.8
26.3
5.4
Stenhens
26
42
100. 0
Headquarters
2
20.7
Total Virginia district
113
5
12
152
1,166
13.0
1 Mine idle.
* Mine Idle; no empIOTees.
> Mine idle, but houses used by employees section 21 mine.
' Dwellings at Race Course, Mitchell and Maoomber properties (23 in all), are for use ol employees at
Queen mine, and percentage is figured on basis of 389 men to 28 jnen housed.
> Mine idle; but 1 man employed as caretaker.
17042— No. 50—12 6
3336 UNITED STATES STEED COBPOKATION.
Dwelling and hoarding houses, Oliver Iron Mining Co. — Continued.
Dwelling
Boarding
houses.
Camps.
Number of men —
Percent
Housed.
Employed.
housed.
BIwabik district:
Duluth'
McKlnley '
15
1
2
3
Canton 1...
"
Total BIwabik district
16
2
3
Fayal district:
Fayal
95
44
44
1
2
178
53
52
574
132
76
31.0
Geneva
40 0
Gilbert ...
3
68 0
Total Fayal district
183
4
2
283
782
36 2
Adams district:
62
16
1
15
2
117
34
2
21
727
669
2
78
6.0
100.0
27.0
Auburn
1
Total Adams district
84
1
2
174
1,376
12.6
Canisteo district:
107
72
56
11
4
2
2
2
17
9
15
'2
378
96
297
33
663
171
661
57
57.0
66.0
53.0
53.0
Hill
Total Canisteo district
246
10
43
804
1.452
65.0
Hibbing district:
Mississippi
10
1
11
91
62
22
2
1
1
6
1
2
75
24
37
304
209
34
235
103
277
796
518
102
163
31.9
23.3
. 13.4
38.2
40.4
33.3
Mace. ..■".".
Harold
1
7
6
3
Hull-Rust & Penobscot
Vfrnria-WinnifrAil , ,
Total Hibbing district
197
13
17
683
2,194
31.1
RECAPITULATION.
1,043
260
342
191
99
41
4
4
4
8
89
2,599
, 317
292
365
101
8,939
1,682
976
2,378
1,230
29.0
20.0
30.0
16.4
8.2
Menominee Range
Marquetta Range
Gogebic Range
Varmilion Range
Grand total
1,935
61
89
3,674
16,099
24.3
1 Mine Idle.
2 Being erected.
[Telegram.]
Unitbd States Steel Cokpobation,
^ - „ _ Pittsburgh, February 10, 1912.
Have not heard from all plants, but basing on returns from two-tMrds of the plante,
I am sure that not over 5 per cent of men work 12 hours, these usuaUy on iteht turn,
and work only five nights per week. No work Saturday night orSunday night.
F. B. Thompson.
American Bridge Co., Prick BuhiDing,
Mr. C. L. Close, PUUbwrgh, Pa., Febrvmy 8. im.
United States Steel Corporation, New York City.
• ??^x ®™" ^°^ telegram received. I know of no modificationB or changes to make
in the statement I made to Mr. Farrell in reference to six-day week labor.
UNITED STATES STEEL COEPOEATION. 3337
As far as the percentage of men employed by this company regularly for 12 hours per
day is_ concerned, I have asked our auditor, Mr. Thompson, to make up a statement and
send it to you. If there is any further information on this matter that you want,
please take up with Mr. Thompson, as I expect to be away for three or four weeks.
Yours, very truly,
Aug. Ziesing, President.
[Telegram.]
United States Steel Corporation,
Fehruary 7, 1912.
August Ziesing,
President, American Bridge Co., Frich Building, Pittsburgh, Pa.:
Are there any modifications or changes to make in your statement, letter to Mr. Far-
rell dated November 13, regarding six-day week labor? Would like to have percentage
of total men employed working regularly 12 hours per day.
0. L. Close.
American Bridge Co.,
Chicago, III., October 24, 1911.
Mr. C. L. Close,
Committee of Safety, United States Steel Corporation,
71 Broadway, New York City.
Dear Sir: Your letter of October 20 was received.
We are now getting up a report which was asked for by President Farrell, which
will show how many of our men work more than six days a week, also what hours per
day they are employed.
I think that, speaking in a general way,, we have succeeded pretty fairly in intro-
ducing the six-day week, and in very few cases do we work men more than 12 hours
in any one day. A very large majority of men work only 10 hours.
As soon as the above-mentioned report has been completed, I will send you a copy.
Very truly, yours,
Aug. Ziezing, President.
American Bridge Co.,
Chicago, III., November IS, 1911.
Mr. J. A. Farrell,
President, United States Steel Corporation,
71 Broadway, New York City, N. Y.
Dear Sir: Some time ago you asked for some information about the hours worked
ger day and the number of days worked per week by the employees of the American
Bridge Co.
At our bridge plants our men are worked 54 hours per week; that is, 10 hours for
«ach of 5 days and 4 hours on Saturday. Some plants change this to 9 hours each
day for 6 days in the week during the winter months. None of these men work
more than 10 hours per day except occasionally when we are hard pushed for deliveries
when we may work a few hours overtime on certain machines in order to cateh up
with our wonc.
This, however, does not include watehmen. Our watehmen are on duty 12 hours
each day, and in many cases work seven days in the week except when they ask for
3, day on which is always granted thein on request.
For the Pencoyd mill 1 have had a statement made up showii^ the nominal and
actual hours that men are on dutjr, also showing the time that they are at work while
on duty. The figures given in this report may vary some from time to time, particu-
larly the actual time working and the time resting, but in a general way they show a
fair average for our Pencoyd mill.
The men at our Pencoyd mill are worked only six days per week excepting the
watehmen, who are worked the same number of days per week as the watchmen at
our bridge plants.
Yours, truly,
Aug. Ziesing, President.
3338
UNITED STATES STEEL, COEPOKATION.
Average actual working and resting time for various positions, Peneoyd plant, Amerusa
Bridge Co.
Occupation.
Open-hearth department:
Melter
Do
■ Assistant melter
Do
First helper
Do
Second helper
Do
Charging machine operator.
Do
Floor crane operator
Do
Engineer, stock
Do
Brakemen, stock
Do .-.
Puncher
Do
Boss stocker
Do
Stockers
Do
Stock distributer
Do
Pit foreman
Do
Pitman
Do
Ladle man
Do
Pit Craneman
Do
Engineer, N. G. ingot
Do
. Brakemen, N. G. ingot
Do
Ingot weigher
Do
Stopper maker
Blooming mill:
Heater
Do
Helper
Furnace crane operator
Do
Engineer
Do
Assistant engineer
Do
GUer
Do
Wienohman
Do
Manipulator
Screwman
Do
Roller tableman
Do
Hotbed man
Do
Shear table operator
Do
Shearsmaa
Do
Assistant Shearsman
Do
Shear crane operator
Do
Weigher
Do
Turn.
Night..
Day....
Night..
Day....
Night..
Day . . .
Night..
Day....
Night..
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day-
Night.
Day...
Night.
°!!.o;
...Do.
Night.
Day....
Night..
Day....
Night..
Day....
Night..
Day....
Night..
Day...
Night.,
Day...
Night.:
Day...
Night..
Day...
Night..
Day...
Night..
Day...
Night..
Dav...
Night..
Dav...
Night..
Day...
Night..
Day...
Night..
Dav...
Night..
Hours on duty.
Nom-
inal.
Actual.
H. m.
13 56
10 04
13 50
10 05
14 00
10 00
14 00
10- 00
14 00
9 57
14 00
10 00
13 45
10 30
13 62
10 12
13 69
10 00
14 00
10 00
14 CO
10 00
14 07
10 00
13 30
10 15
14 00
10 00
13 56
9 57
14 00
10 00
14 00
10 00
14 00
10 00
14 00
10 00
10 00
10 30
13 06
10 30
12 47
10 30
12 47
10 30
12 55
10 17
13 25
10 30
13 30
10 30
13 30
10 32
13 28
10 30
13 30
10 30
13 30
10 30
13 30
10 30
13 30
10 30
13 30
10 30
13 30
10 45
13 30
10 37
13 30
Time
actually
working.
UNITED STATES STEEL COBPOBATION.
3339
Average actual working and resting time for various positions, Pencoyd plant, American
Bridge Co. — Continued.
Occupation.
Hours on duty.
Time
Turn.
actually
Nom-
mal.
Actual.
working.
H.
m.
H. m.
Day
12
11
30
10 27
NigM...
12
12
33
8 34
Day
12
1(1
m
7 54
Night...
12
1«
f)9
12 31
Day
12
10
10
7 28
Night...
12
i;i
63
10 20
Day
12
10
21
7 63
Night...
12
i;j
2H
11 52
Day
12
10
05
7 04
Night...
12
13
S7
8 34
Day
12
11
22
9 36
Night...
12
12
45
10 20
Day
12
11
22
9 34
Night...
12
12
45
10 20
Day
12
11
0
8 06
Night...
12
13
0
5 57
Day
12
10
51
8 06
Night...
12
12
62
■ 9 47
Day
12
11
18
10 07
Night...
12
12
43
11 49
Day
12
11
Ifi
9 49
Night...
12
12
59
10 69
Day..>.
12
11
15
10 22
Night...
12
12
61
9 51
Day
12
10
40
8 24
Night...
12
13
14
10 16
Day
12
11
01
8 46
Night...
12
12
57
9 33
Day
12
10
!f
9 21
Night...
12
13
11 26
Day
12
11
24
10 12
Night...
12
12
30
10 33
Day
12
10
57
6 46
Night...
12
12
34
6 46
Day
12
10
30
9 39
Night...
12
13
31
10 16
Day
12
12.
0
10 40
Night...
12
12
0
10 20
Day
12
12
0
10 40
Night...
12
12
0
10 60
Day
12
10
30
9 10
Night...
12
13
30
11 60
Day
12
10
30
9 10
Night...
12
13
30
11 60
Day
12
10
30
9 10
Night...
12
13
30
11 50
Day
12
12
0
9 20
Night...
12
12
0
8 50
Day
12
10
30
8 10
Night...
12
13
30
10 20
Day
12
10
30
7 50
Night...
12
13
30
10 00
Day
12
10
30
8 50
Night...
12
13
30
11 00
Day
12
10
30
8 00
Night...
12
13
30
10 20
Day.....
12
10
30
7 50
Night...
12
13
30
10 20
Day
12
10
30
7 50
Night...
12
13
30
10 20
Day
12
10
30
8 00
Night...
12
13
30
ID 20
Day
12
12
0
10 30
Night...
12
12
0
9 45
Day
12
10
30
7 16
Night...
12
13
30
i 9 20
Day
12
in
30
7 16
Night...
12
13
30
9 20
Day
12
10
30
7 16
Night...
12
13
30
9 20
Day
12
10
30
7 16
Night...
12
13
30
9 10
23-28-lnch finishing mill:
Roller
i Do
Engineer 23-inch mill
Do
Engineer 28'moh mill
Do
Assistant engineer 23-inch mill. .
Do.
Assistant engineer 28-inch mill.
Do
Sorewman
Do
Manipulator
Craneman, hotbed
Do
Saw operator
Do
Guideman ,
Do ,
Tableman
Do
Buggy operator
Recorder
Do
Assistant recorder
^1 Do
Straightener
t- Do
Heater
Do
Heater helper
Do
Door boy
Do
20-inch finishing mill:
EoUer
Do
Guide
Do
Tablemen
Do
First assistant recorder
Do
Second assistant recorders
Do
Heater
Do
H. B. controller operator
Do ;
Heater helper
Do
Engineer
Do
Furnace cont. operator
Do
Cliarger
Do
Saw boy
Do
Recorder
Do
I^inch finishing mill:
Bollera
Do
Eoller helper
Do
Roughers
Do
Spell rougher
D6
Catcher
Do
3340
UNITED STATES STEEL CORPOEATION.
Average actual working and resting time for various posiiions, Pencoyd plant, Atneriem
Bridge Co. — Continued.
Occupation.
Turn.
Hours on duty.
Nom-
inal.
Actual.
Time
actually
working.
Time
resting.
12-lnoli flniahlng mill— Continued .
Hook-up
Do
Hook-in
Do
Spell catcher and hook-up
Do
Spell roller helper and hook-in. .
Do
Finish hook-up
Do
Straightener
Do
Spell straightener
Do
Heater
Do
Heater helpers, first
Do
Heater helpers, second
Do
Charger
Telegraph man
Recorder
Do :.;;;;;;
Hotbed men
Do :;■
Engineer ,
Do ;
Finish hook-in
Do ;..;■■
Ex-spell hook
0. H. Department and 3Mnchiniirgas makers:
Foreman gas maker
Do ;:;
Gasmen
Do
28-lnch mill gas makers:
Foreman
Do ;.:::;:;:'■■
Gasmen
Do :;;:;;;;::;;
12-inch mill gas makers:
Gasmen
Do ;;;::;;;■
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...
Night.
Day...,
Night.,
Day....
Night..
Day....
Night..
Day...,
Night..
Day....
Night..
Day....
Night..
Day....
Night..
Day....
Night..
Day....
Night..
Day...
Night.
Day...
Night.
Day....
Night..
Day....
Night..
Day...
Night.
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
H. m.
10 30
13 30
10 30
13 30
10 30
13 30
10 30
13 30
10 30
13 30
12
12
12
12
12
12
0
n
10
an
13
311
10
30
IH
31)
10
30
13
30
10
30
13
30
10
■An
13
30
12
0
12
n
10
an
13
30
10
30
13
30
10
3n
13
30
10
07
13
S2
in
ns
13
51
10
20
13
40
10
10
13
so
10
IS
B. m.
7 15
9 20
7 15
9 20
15
9 20
7 IS
9 20
7 IS
9 20
8 30
8 15
8 30
8 15
10 00
9 12
8 30
10 05
8 30
10 05
8 25
9 55
8 30
10 05
7 30
10 no
8 30
8 15
7 36
10 10
7 15
9 20
7 15
9 20
7 51
10 49
8 39
13 45
S. m.
3 15
4 10
3 15
4 10
3 16
4 10
3 15
4 10
3 15
4 10
3 45
2 00
OO
30
30
45
54
20
16
10
15
10
2 15
3 40
American Bbidge Co.,
Chicago, III., September US, 1911.
My Dear Mr. Farrell: Again referring to your letter of the 31st, in which you ask
for complete information on the subject of hours of work per day and days of work per
week of our employees at our plants and mills, I wish to say it is taking us longer to
gather together this information than I have anticipated, as we have not up to the
present, time kept a tabulated record covering these points on which you wish informa-
tion. I hope, however, in the very near future to be able to make you a complete
In the meantime I wish to say that I feel very sure that at all of our plants and mill?
we have been for some time enforcing the order of giving every man one day rest out of
Beven, and I do not believe that we have worked any man more than twelve consecu-
tive hours per day for a year or more.
Very truly, yours, Aug. Zibsing, President.
Mr. J. A. Farrell,
President United States Steel Corporation, 71 Broadway, New York City.
UNITED STATES STEEL COBPOBATION. S341
[Telegram.]
United States Steel Cobpokation,
Birmingham, Ala., February 7, 1912.
C. L. Ciosb:
Of the total number employed at Ybena, including minea, furnaces, steel works, etc.,
about pizm ofyfz per cent worked regularly on pizcb hour turns duiing the period cov-
ered by last data secured . Conditions now are practically same as then .
Geo. G. Cbawpokd.
[Telegram.]
United States Steel Cohpohation,
February 7, 1912.
Geo. C. Crawford,
President Tennessee Coal, Iron & Railroad Co.,
Brown- Marx Building, Birmingham, Ala.
Will you please give me percentage of total employees in your company working
regularly twelve hours per day?
C. L. Close.
Tennessee Coal, Iron & Kailboad Co.,
Birmingham, Ala., September 25, 1911.
Dear Sir: I regret to say that a rapid expansion in our blast-furnace department
"played hob " with our six-day-week schedule. We had it started early this summer,
and then had to blow in furnaces rapidly to respond to a sudden demand. Now" we
have all the furnaces in that we will probably blow in for some time, and we expect to
go after the six-day week vigorously, and expect to have a different report the next
time you call for some data.
Yours, very truly, Geo. G. Crawford, President.
Mr. R. C. BoLLiNG,
(Care of United States Steel Corporation),
71 Broadway, New York, N. Y.
Tennessee Coal, Iron & Railroad Co.,
Birmingham, Ala., January 24, 1912.
Dear Sir: Referring further to your letter of December 20, I inclose herewith accu-
rate statistics showing just what has been accomplished in regard to the six-day week.
Yours, truly,
Geo. G. Crawford, President.
Mr. C. L. Close,
(Care of United States Steel Corporation),
71 Broadway, New York, N. Y.
Tennessee Coal, Iron & Railboad Co.,
Birmingham, Ala., January 9, 1912.
Dear Sir: Referring to your letter of the 20th ultimo, in regard to six-day-week
labor and reduction in the number of hours employees work, I wish to advise that we
are preparing a full report on this matter and same will be forwarded within the next
day or two.
In order to give you an idea, however, as to the progress we have made in this
direction, I attach herewith a statement showing the percentage of employees working
over six days per week in our blast-furnace department at Bessemer, Alice, and Ensley,
from which you will notice that we have entirely eliminated seven-day week at
Bessemer and Alice and have made considerable progress at Enslevj
Yours, truly,
Geo. G. Crawford, Presidents
Mr. C. L. Close,
(Care of United States Steel Corporation),
71 Broadway, New York City.
3342
UNITED STATES STEEL COEPORATION.
Percentage of employees working over six days per week.
["A" represents percentage based on number of men enrolled. "B" represents percentage based oa
number of men employed (average).]
Bessemer.
AUce.
Ensley.
■(Veek end-
mg—
A
B
A
B
A
B
Oct. 1, 1911
fil
50
51
7fi
55
61
Oct. 8,1911
37
50
61
70
43
53
Oct. 16, 1911
25
38
4.';
fil
41
50
Oct. 23, 1911
2fi
40
43
56
61
69
Oct. 29, 1911
24
35
47
71
49
56
Nov. 5,1911
14
20
27
33
20
25
Nov. 12, 1911
6
9
5
6
18
24
Week end-
ing—
Nov. 19, 1911
Nov. 26, 1911
Dec. 3, 1911
Dec. 10, 1911
Dec. 17, 1911
Dec. 24, 1911
Dec. 31, 1911
Besseiaer.
AUce.
Ensley.
IS
21
28
23
21
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hows o
fixed occupations, Sept. 2S, 1911.
BLAST FURNACE DEPARTMENT.
Occupation.
Oeiferal.
Superintendent
Assistant superintendent
Night supermtendent
Superintendent's clerk
Accounts department clerk
Furnace practice
Coke inspector
Iron-yard foreman
Hot-metal weighman
Sample man
Mail carrier
Engine-revolution checker
Painter and window cleaner. ,.
Total
Furnace operatioTis.
Foreman stock dumpers
Bro\vn ore crane operator
Wrenchers
Knockout men
Stock-house foreman
Scale-car operators
Scale-car operators, helpers
Skip-hoist men
Scrap handlers
Track and pit men
Stock-house labor
Braize-machine operator
Braize-machine operator.helper,
Inspector force tops
Stove-elevator operator
Scrap-hoist operator
Total
Casting.
Boss foundryman
Blower, forces 2 and 3
Blower, force 1
Blower, forces 5 and 6
Stove tenders '..
Keepers
First helpers
Second helpers
Num-
ber of
men.
Hours.
In
turn.
16
190
Actual
work.
10
Rest.
Spelled
Remarks.
Supervisions
Do.
Do.
Intermittent light work.
Do.
Do.
Supervision.
Do.
Interval between furnace casts.
Do.
Intermittent, light work.
Do.
Interruptions due to chg.
work.
Supervision.
Intervals in stock sup^
Intervals due to shifting oars.
Do.
Supervision.
Variation demand fees.
Do.
Do.
Do.
Operating intemaptions.
Do.
Intermittent operation.
Do.
Supervision.
Intermittent, light work.
Operating interruptions.
Supervision.
Do.
Do.
Do.
Interval between
casts.
Do.
Do.
Do.
cbgs. and
UNITED STATES STEEL COEP0RA.TI0N.
3343
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hours of
fixed occupations, Sept. 28, 1911 — Continued.
BLAST FUBNACE DEPAETMENT— Continued.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
Cos^Ti^— Continned.
4
10
2
1
1
1
45
1
1
2
1
12
12
12
12
12
12
10
10
10
10
12
Position abolished.
Cinder snappers.
9
10
12
12
12
9
9
9
9
7
3
2
0
0
0
1
1
1
1
5
0'
0
0
0
0
0
0
0
0
0
Interval between chgs. and
casts.
Intermittent light work.
General labor foreman
Supervision.
Assistant labor foreman
Do.
Do.
Laborers. . . .
Operating interruptions.
Do.
Assistant sand molder
Do.
Molders' helpers
Do.
Interval between chgs. and
casts.
Total
117
220
177.
31
0
LadU house and pig machim.
Foreman ladle house and pig
machine.
2
1
2
4
4
1
1
4
12
2
12
12
12
12
12
12
12
12
12
12
12
10
10
10
10
10
8
10
10
10
0
2
2
2
2
2
4
2
2
2
0
0
0
0
0
0
0
0
0
0
Supervision.
Shop interruptions.
Ladle liners
Ladle liners' helners
Do.
Crush and grind pan man
Laborers
Do.
Do.
Variable demand for crane.
Cast machine, first .helper
Cast machine, second heli>er....
Irregular supply iron.
Intermittent light work.
Total
33
120
100
20
0
Cinder bank.
2
2
2
2
2
12
12
12
12
12
12
11
8
8
0-
1
4
4
0
0
0
0
Supervision.
Do.
Interval between cinder runs.
Hot pot gear cleaner and oiler . .
Do.
Position abolished.
Total
10
60
39
9
0
GENEEAL BOILER DEPARTMENT.
1
1
12
12
12
12
0
0
0
0
Supervision.
General foreman (night)
Do.
Total
2
24
24
0
0
No. 1 steam plant. *
Water tender
4
2
8
4
2
6
3
2
1
1
2
2
12
12
12
10
10
10
10
10
12
12
12
12
12
10
10
9
9
9
9
0
2
2
1
1
1
1
0
0
0
0
0
0
0
Supervision.
Variable demand steam.
Firemen
Do.
Do.
Bolier reamer
Irregular bqiler washing.
Do.
Intermittent light work.
Position abolished.
Boiler reamer helper and wash-
ers.
Boiler-flue blowers
Goal and ash hoist operator
9
9
9
10
3
3
3
2
0
0
0
0
Intermittent light work.
Do.
Do.
Do.
Total
37
134
105
19
0
3344
UNITED STATES STEEL COBPOBATIOJS .
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hourg'^J
fixed occupations, Sept. Z8, iWi— ^Continued.
BLAST FURNACE DEPAKTMENT— Ckjntinned.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
JTo. JJ steam plant.
"Water tender
4
4
1
2
1
2
2
12
12
10
10
10
12
10
12
8
9
9
9
10
8
0
4
1
1
1
2
2
0
0
0
0
0
0
0
Supervision.
"Boiler reamer
Irregular boiler washing.
Intermittent light work.
Do. *
Do.
Boiler helpers and washers
Water heater and pump men...
Total
16
76
65
11
0
WateT^purifyin^ plant.
Filter men
2
2
12
12
10
10
2
2
0
0
Intermittent occupations.
Total
4
24
20
• 4
0
No. 1 engine room.
First engineer
,4
4
2
2
8
3
2
1
12
12
12
12
12
12
10
10
12
12
12
12
8
8
8
9
0
0
0
0
4
4
2
1
0
0
0
0
0
0
0
0
Intermittent light work.
Do
Second engineer
Condenser engineer
Do
Condenser engineer helper
Do.
Engine wiper
Do
Oil filter men
Floor sweeper
Do
Total
26
92
12
12
12
12
12
12
10
81
12
12
12
12
8
8
9
11
0
0
0
0
4
4
1
OOOOOOO o
No. « engine room.
First engineers
2
2
2"
2
4
2
1
Intermittent light work.
Do.
Do.
Do.
Do.
Do.
Do.
Second engineers.
Condenser engineers
Dynamo and air pump men
Engine oilers
Floor sweeper
Total
15
82
73
9
0
Furnace pump house.
No. 6 furnace pump men
Cooling station pumps.
Pumpmen
2
2
12
12
12
0
0
Intermittent light work.
Position abolished.
Mechanical department, general.
Power master mechanic
Assistant master mechanic
Furnace master mechanic
Night master mechanic
1
1
1
1
1
1
2
1
1
2
1
6
1
1
1
3
10
1
a
5
12
12
12
12
10
10
10
10
10
10
10
10
12
12
12
12
12
10
10
10
12
12
12
12
9
0
0
0
0
1
0
0
0
0
0
Supervision.
Do.
Do.
Do.
Intermittent light work.
Master mechanic clerk
Material chaser and checker
First class repair men
9
9
9
9
9
9
12
11
11
10
10
8
9
9
1
1
1
1
1
1
0
1
1
2
2
0
0
0
0
0
0
0
0
0
0
0
Delays incident to mechamc41
work.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do
Second class repair man
Third class repair men
Fourth class repair man
Repair men helpers. . .
Millwright foreman
Assistant millwright foreman..
Night millwright foreman ."
Millwrights
Millwrights' helpers
Pipe-fitter foreman
Pipefitters
1 0
1 0
Pipe fitters' helpers
tTNITBD STATES STEEL COEPOEATION,
3345
Tennessee Coal, Iron and Sailroad Co., Ensley Works, statement showing rest hours of
fixed oecikpatioTig, Sept. 28, i9Ji— Continued.
BLAST FUENACE DEPARTMENT— Continued.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
SpeUed.
Remarks.
Jfeclumical department, gen-
eral—Cootbaxei.
Hoist-engine oiler....
2
2
2
4
1
12
12
12
10
10
9
9
7
9
9
3
3
5
1
1
0
0
0
0
0
Delays inddentto mechonica)
Furnace-top oiler
work.
Do.
Gast-liouse Jtrolley boy
Do.
Intermittent occupation.
Steam-gauge repair man
Delay incident to mechanical
work.
Total
55
274
234
30
0
Pump repairs.
Second class repair men .
Fourth class repair men
1
1
10
10
9
9
1
1
0
0
Delays incident to mechanical)
work.
Do.
Total
2
20
18
2
0
Cinder pot repairs.
Second class repairlmen
1
3
10
10
8
8
2
2
0
0
Intermittent occupation.
Do.
Total
4
20
16
4
0
Blowing engine repairs.
No. 1 and 2 engine rooms:
Second class repair men —
Repair men helpers
Fourtli class repair men. . . .
Pine fitter
1
2
1
1
1
1
12
12
12
10
10
12
10
10
10
9
9
3
2
2
1
1
0
0,
0
0
0
Delays incident to mechanicai
work.
Do.
Do.
Intermittent occupation.
Pma fitter helDer
Do.
Position abolished.
Total "
1
68
48
8
0
No. 1 engine room:
First class repair men
Second class repair men... .
Repair men helpers
Fourth class repair men... .
Cranema'i .
3
2
5
1
1
10
10
1?
10
9
9
9
9
8
1
1
1
1
2
0
0.
0
0
0
Delays incident to mechanical:
work.
Do.
Do.
Do.
Intermittent work.
Total
12
50
44
6
0
No. 2 engine room;
First class repair men
Repair men helpers
Second class repair men —
1
2
1
1
10
10
10
10
9
9
9
9
1
1
1
1,
0
0
0
0
Delays incident to mechanical
work.
Do.
Do.
Intermittent work.
Total
5
40
36
4
0
Casting macUne repairs.
1
1
10
10
9
9
1
1
0
0
Intermittent work.
Fourth class repair man
Do.
Total
2
20
18'
2
0
Furnace pipefitters.
Pipe fitters' helpers
2
3
12
12
8
8,
4
4
0
0
Intermittent occupation.
Do
Do.
Total
5
24
16
8
0
3346
UNITED STATES STEEL COBPOBATION.
Tennessee Coal, Iron and Railroaid Co., Ensley Works, statement showing rest liaWi 6f
fixed occupations, Sept. 28, 1911 — Continued.
BLAST i'URNACE DEPARTMENT-^Contlnued'.
Num-
ber ol
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
Furnaee pipe fitters— Conti.
Electricians:
2
2
12
12
8
8
4
4
0
0
Intermittent occupation.
Do.
Motor tender.- -
Total
4
24
16
8
0
Blacksmith shop:
1
1
1
4
1
10
10
10
10
10
9
9
9
9
6
1
1
1
1
4
0
0
0
0
0
Delays incident to machine
work.
Do
Do
Do
Do.
Blacltsmith helpers
Do.
Do.
Total
8
50
42
8
0
OPEN-HEARTH DEPARTMENT.
Genera!, planU 1 and I.
Superintendent
1
2
2
2
10
12
10
10
10
12
12
10
12
12
12
10
12
10
8
8
10
10
0
0
0
2
2
2
2
0
0
0
0
0
0
0
Supervision.
Do.
Do.
Intermittent light work.
Do
Delay clerk and acting night
superintendent.
Assistant superintendent
Product clerk
Clerk
Delay clerks
Do
Sweeper superintendent's of-
floe.
Mold record man
Do.
Ingot tracer
10
10
10
2
2
2
0
0
0
Intermittent light work.
Cold ingot chaser.... .
Do
Total
14
122
98
14
0
.
Gto jwodwers, No. t plant.
Foremen
2
2
16
2
6
2
1
2
12
12
12
12
12
12
12
12
12
10
10
10
10
10
10
10
0
2
2
2
2
2
2
2
0
0
0
0
0
0
0
0
Supervision.
Intermittent light work.
Do
Assistant foreman and stopper
puller.
Ors TTiftVflrs
Intermittent heavy work.
Fire cleaners
Intermittent light work.
Coal handlers
Coal larry men
Total
33
96
82
14
0
Oas proAmers, No. 1 pVttu.
Foremen
2
8
1
3
2
1
2
12
12
12
12
12
12
10
12
10
10
10
10
10
9
0
2
2
2
2
2
1
0
0
0
0
0
0
0
Supervision.
Intermittent light work.
Intermittent heavy work.
Do.
Intermittent light work.
Do.
Foreman fire cleaners
Coal handlers ...
Coal handlers and coke grinder. .
Coke drier and sacker
Total
19
82
71
11
0
Clmging pm andjumace.
2
2
16
16
12
12
12
12
12
12
12
12
6
7
7
0
0
6
5
S
0
0
0
0
0
Supervision.
Junior melter
First helper
Intermittent heavy tot work.
Second helper
Third helper
Do.
UNITED STATES STEEL COBPORATION. 3347
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hours of
fixed occupations, Sept. 28, 1911 — Contimied.
OPEN-HEARTH DEPARTMENT— Continuea.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
Chargingjloor and furnace—
Continued.
PuHups
8
4
4
1
10
2
2
12
12
12
10
12
12
12
7
9
8
9
10
10
7
5
3
4
1
2
2
6
0
0
0
0
0
0
0
Intermittent lighfwork.
■p^^jnr p.rftTi(^TTipTl .
Do.
Do.
"nnnr i^TifJ Rpnnt liTiftr
Luncn nour.
General floor labor
Intermittent light work.
Do.
Charging oar spout setter.
Do.
Total . .
79
142
104
38
0
Stoclt handlers.
2
12
4
4
2
12
12
12
12
12
11
10
9
9
9
1
2
3
3
3
0
0
0
0
0
Stockers
Intermittent heavy work.
Do.
Stock weighmen
Do.
Total
24
60
48
12
0
GeTieral labor.
General labor foreman
1
10
10
10
9
9
1
1
0
0
Supervision.
Total
11
20
18
2
0
Coating and stripping.
General pit foreman
1
2
2
2
2
4
4
6
8
22
6,
10
10
2
1
2
2
1
1
3
1
1
2
2
1
3
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
10
10
10
10
10
12
12
12
12
12
12
12
10
10
10
10
10
10
11
10
9
1
0
0
0
2
2
2
2
2
2
1
2
3
3
4
0
0
0
0
0
0
•8
0
0
0
0
0
0
Supervision.
Pit fbrenien
Do.
N. G. foreman
Do:
Stopper setter
Intermittent work.
Stopper setter helper .
Do.
Do.
First ladleman
Do.
Second ladleman
Do.
Table men
Do.
Ladle craneman
Intermittent work.
Do,
Do.
Stripper craneman
Do.
Abolished.
11
«9
«9
9
9
8
10
10
10
1
"l
'\
1
1
4
2
2
2
0
6'
6"
0
0
0
0
0
0
Tn^'^t mnlrf tanvr
Do.
Eirst ladle liner .'
Do.
Do.
Do.
Do.
Stopper maker helper. _
Do.
Do.
Granemen old 0, H. building...
Do.
Do.
Crane booker helper.
Do.
Total
103
302
250
38
0
Mechanical.
Master mechanic
2
1
12
12
12
12
12
12
12
12
12
12
10;
10
10
10
10
10
10
10
0
2
I
2
2.
2
2
2
0
0
0
0
0
0
0
0
0
Supervision.
Millwright foreman
Intermitteht work.
Do
Do.
Millwrights
Do.
Do.
Pipe fitters T
Do.
Do
Do.
Do
Do.
Do
Do.
■ Abolished.
3348
UNITED STATES STEEL CORPORATION.
Tennessee Coal, Iron and Rmlroad Co., Ensley Works, statemenflghoviing rest hows 0/
Jixed occupations, Sept. 28, 1911— Gontimied.
OPEN-HBAETH DEPARTMENT— Continued.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
JftcftanicaJ— Continued.
1
2
2
1
1
4
1
1
2
1
1
2
12
12
12
10
11
10
10
10
12
11
11
12
9
10
10
94
10
f
11
10
0)
12
3
2
2
1^
J
1*
1
1
0)
0
0
0
0
0
0
0
0
0
0
0
6'
Intermittent work.
Do.
Motor tenlier .
Do.
Do.
Engineer
Do.
Mold yard repair men
Do.
Do.
Greaser, S. G'.
Do.
Greaser. N. G
Do.
Do.
Hydraulic valve men helper. . . .
Do.
Do.
Total
39
263
219i
32i
0
Lime burning.
Foreman
1
2
2
1
2
1
2
2
3
1
2
10
12
12
12
12
10
12
12
12
12
12
10
12
10
11
9
8
Hi
Hi
9i
10
10
0
0
2
1
3
2
^i
2
2
0
0
0
0
0
0
0
0
0
0
0
Supervision.
Do.
Fpftflpr man
Intermittent 'liglit work.
Do.
Loader
Do.
Cranemen
Do.
MiUwright
Do.
Do.
Oiler
Do.
Do.
Unloader
Do.
Total
22
128
112i
15i
0
MIXER, CUPOLA, AND CONVERTER DEPARTMENTS.
Oeneral.
Superintendent
Turn foreman
Craneman
Labor foreman and extra
blower.
Total
Metal mixer.
Mixer man
Mixer-man helper
Skimmer
Locomotive engineers
Total
CupoUu.
Foreman cupola stockers
First stocker
Stockers No. 1 cupola
Stockers No. 2 cupola
Weighmen and first charger
Chai^rs
Tappers
Tappers' helpers
Hoist engineer
Total
1
10
10
0
0
2
12
12
0
0
2
12
9
3
0
1
12
12
0
0
6
46
43
3
0
2
12
9
3
0
2
12
9
3
0
2
12
9
3
0
2
12
8
4
0
8
48
35
13
0
1
12
10
2
0
2
12
10
2
0
12
12
10
2
0
20
12
10
2.
0
2
12
10
2
0
4
12
10
2
0
2
12
10
2
0
2
12
10
2
0
2
12
10
2
0
47
108
90
18
0
Supervision.
Do.
Waiting on operations.
Supervision.
Intermittent handling of
metal.
Do.
Do.
Waiting on operations.
Delay in operation account
cupola^ or mixers full.
Do!
Do.
Do.
Do.
Do.
Do.
Do.
'Abolished.
UNITED STATES STEEL COEPOBATION.
3349
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hows of
fixed occupations, Sept. $8, 1911 — Continued.
MrXEE, CUPOLA, AND CONVBBTEE DEPAKTMENTS— Continued.
Num-
ber of
men.
Hours.
OecupatiOD.
In
turn.
Actual
work.
Rest.
SpeUed.
Remarks.
Converters.
Blowers
2
2
2
2
2
2
4
2
2
2
12
■ 12
12
12
12
12
12
12
12
12
8
9
9
9
9
9
9
8
9
9
4
3
3
3
3
3
3
4
3
3
0
0
0
0
0
0
0
0
0
0
Delay in operations on ac-
count of variable demand
for blown metal by the 0. H.
furnaces.
Do
Regulator
Do.
First vessel man
Do.
Do.
Vessel-man helper
Do.
Do.
Do.
Engnieer hot metal. . .
Do.
Do.
Total
22
120
88
32
0
Bottom and ladle house.
Bottom maker
2
4
2
2
2
2
4
4
6
2
2
12
12
12
12
12
12
12
12
12
12
12
10
10
7
11
11
11
11
11
11
10
10
2
2
5
2
2
0
0
0
0
0
0
0
0
0
0
0
Rest period variable, due to
Bottom maker helper
fluctuations in life of bot-
toms, demands for which
may eliminate rest periods
temporarily.
Do.
Cranemen bottom house
Oven firemen
Do.
Do.
Ladle men
Do.
Ladle men helpers
Do.
OrinH pan firsf TTlftn..
Do.
Do.
Generallabor
Do.
Do.
.^, fi, fSWltfillTnATl
Do.
Total
32
132
113
19
0
Blowing engine house.
For^TT^en
1
2
2
2
2
10
12
12
12
12
10
9
9
10
9
0
3
3
2
3
0
0
0
0
0
Supervision.
Delay in operations due to
Blowing engineer...
Engine oiler
variable demand on the con-
verters for metal.
Do.
Hydraulic pump tender
Do.
Do.
Total
9
58
47
11
0
Boiler pUmt.
Generftl foreman-.
1
1
1
6
2
2
2
2
12
12
12
12
12
12
12
12
12
12
10
10
9
9
10
9
0
0
2
2
3
3
2
3
0
0
0
0
0
0
0
0
Supervision.
Dou
Do.
Boiler washer and reamer
Stirling boilers;
Variable condition of boilers.
Variable demand tor steam.
Fire cleaner and coal
dumper.
Ash roller
Do.
Do.
Wlckes boilers:
Firemen and water tender. .
. Do.
Do.
Total
17
96
81
IS
0
ifechanical.
MlIwriBlit
2
2
12
12
9
9
3
3
0
0
Intermittent work.
Millwright helper
Do.
Total
4
24
18
6
0
3350
UNITED STATES STEEL COEPOEATION.
Tennessee Coal, Iron and Railroad Co., Ensley Worlcs, statement showing rest hours q,
fiixd occupations, Sept. S8, 1911 — Continued.
MIXER, CUPOLA, AND CONVERTER DEPARTMENTS— Continued.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
SpeUed.
Remarlis.
Blast force ladle cleaning house.
Cranemen
2
2
2
4
12
12
12
12
9
3
0
Variable delivery of metal.
Foremen and weighmen
Locomotive engineet
10
10
2
2
0
0
Do.
Laborers (ladle spotters)
Total
10
48
29
7
0
BLOOMING AND RAIL MILL DEPARTMENT.
General B. M. and B. M.
1
1
1
1
1
1
1
1
i
10
12
12
10
10
12
12
10
12
12
10
12
12
8
8
12
12
8
10
10
0
0
0
2
2
0
0
2
2
0
0
0
0
0
0
0
0
0
0
Supervision.
Do.
Do.
Assistant superintendent
Do
Clerks
Light work.
Do.
Do.
Supervision.
Do.
Do
Light work.
Do. ■
Sweeper, superintendent's ofBce
Intermittent hghtlwork.
Total
11
112
102
10
0
Blooming mill.
Turn foremen . .
2
2
2
12
12
12
12
10
8
0
2
4
0
0
0
Supervision.
Intermittent confining work.
Do.
Heat boys
Total
6
36
30
6
0
Gas producers. ,
Foreman
1
1
8
1
4
4
12
12
12
12
12
12
12
12
10
10
10
10
0
0
2
2
2
2
0
0
0
0
0
0
Supervision.
Do.
Do
Gas makers
Intermittent heavy work.
Do
Do
Ash rollers
Do
Total
19
72
64
8
0
Charging and heating.
4
3
3
2
6
4
12
12
12
12
12
12
12
12
12
12
9
8
8
11
10
10
0
0
3
4
4
1
2
2
0
0
0
0
0
0
0
0
Hot. confining work.
Do.
Delays in operation,
Eeavy,intermittenthot;worli
Do.
Intermittent work.
Do.
Do.
Cranemen
Bottom makers .
Bottom makers' helpers
Coke rollers
Stamper and sweepers
Total
26
96
80
16
0
Rolling and shearing.
Ingot car engineers
2
2
2
2
2
2
2
2
2
2
2
2
12
12
12
12
12
12
12
12
12
12
12
12
12
9
9
9
9
9
10
10
10
10
12
9
9
9
3
3
3
3
3
2
2
2
2
0
3
3
3
0
0
0
0
0
0
0
0
0
0
0
0
0
Delays in operation.
Do!
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Rollers
Engineers
Engine oilers.
MiUoUers
Do
Rhpftr fnrpTTiftn
Shear operators
Table operators ,
Hookers
UNITED STATES STEEL COEPORATION.
3351
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hours j)f
fixed occupations, Sept. ^8, 1911 — Continued.
BLOOMING AND BAIL MILL DEPARTMENT— Continued.
Num-
ber of
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
HoVing and iluaring—Conti.
ficale T)it men...
2
3
1
2
2
2
12
12
12
12
12
12
8
8
11
9
8
9
4
4
1
3
4
3
0
0
0
0
0
0
Heavy, intermittent work.
Do.
Do
Mill Rwppper
Intermittent light work.
Do.
B. M. r!rfi.npTnPTi.
Do.
Do.
Total. ..
38
228
177
51
0
Hot hole.
2
4
8
8
12
12
12
12
12
8
8
8
0
4
4
4
0
0
0
0
Cranemen.
Intermittent light work.
Intermittent heavy, hot work.
Do.
Laborers
Total
22
48
36
12
0
Do.
Axle, Uoom, and billet yard.
Foreman and billet inspector. . .
1
18
1
11
11
11
11
10
10
0
1
1
0
0
0
*
Supervision.
Steady, heavy work.
Light intermittent work.
Stamper
Total
20
33
31
2
0
Bail mill.
2
2
8
2
2
2
12
12
12
12
12
12
12
8
10
11
11
8
0
4
2
1
1
4
0
0
0
0
0
0
Heavy, hot work.
Intennittent work.
Furnace pushers
Heavy, hot work.
Do.
Ash wheelers. . .
Do.
Reheating famace recorder
Intermittent work.
Total
18
72
60
■ 12
0
2
2
2
2
2
2
4
2
2
2
2
2
2
6
2
2
2
I
2
I
10
2
2
2
12
12
12
12
12
12
12
12
12
12
12
12
12
.12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
9
9
9
9
9
9
10
9
10
10
10
10
9
9
10
10
ID
10
10
10
10
(')
0
0
3
3
3
3
3
3
2
3
2
2
2
2
3
3
3
2
2
2
2
2
2
2
0)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6"
0
0
0
0
0
0
0
0
Continuous light work.
Do.
Rough table levermen
Delays in operation.
Second edger tablemen
Do.
Guide setter
Do.
Do.
Do.
Mill greasers
Do.
Do.
Do.
Do.
Do.
Do.
Tallyboy
Do.
Do.
Extra leverman speller
Do.
Do.
Hot saw levermen
Do.
Intermittent light work.
Do.
Riggers .
Intermittent work.
Guide chaser
Do.
Do.
Sweeper ...
Do.
Do.
Do.
Total
67
-
324
242
58
0
17042— No. 50—12
1 Abolished .
3352
UNITED STATES STEEL CORPORATION,
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hows q/
fixed occupations, Sept. SS, 1911 — Continued.
BLOOMING AND RAIL MILL DEPARTMENT— Contlnusd.
Occupation.
Kail finishing mill.
Superinteudent
Superintendent rlork
Rali stoclc ynrd clerk
Turn foreman
Assistant turn foremen
Rali bank foreman
Assistant rail bank foremen . . .
Tallyman
Hotbed foremen
Hotbed HtraUlileners
Hotbed greasers
Finishing mill oiler
Rail stralghleners
Oaggers
Straigliteners helpers
Chippers
Hotbed levennen
Drillers
Drillers' helpers
Dumpers
pander men
Roller linemen
Pull ups
Dock crnnemen
Crane followers
Loaders
Car stacker
Pliers and si ackers
Sweepers
Num-
ber of
men.
Total.
Fini^hinq mill cold saw.
Cold-saw foreman
Cold sawyer
Chippers
Drillers
Restruightener
Restraightener helper.
Gaggcr
Loaders
UnlOttders
L.iborcrs
Total
Boilers fnjrr both plants).
Foreman
Do
Water tenders
Boiler reamer. . .
Boiler wa,sher
Boiler washer's helper. . .
Coal dumpers
Boiler reamer's helper. . .
Total
CaMll boilers.
First fireman
Firemen
Fireclfianers
Firecleaners' helpers .
Ashpit men
Ashpit men helpers . .
103
Total.
In
turn.
Actual
work.
10
10
in
12
12
12
12
12
12
12
12
12
12
12
12 I
12
12
12
12
12
12
12
12
12
lot
340
120
Rest. Spelled
18
10
Remorlcs.
Supervision.
Intermittent light work.
Do.
Supervision.
Do.
Do.
Do.
Intermittent light work.
Intermittent work.
Delay in operation.
Do.
Do.
Heavy, Iiard work.
Do.
Do.
Do.
Tntcrmltteiit light work.
Heavy, hard work.
Do.
Intermittent work.
Heavy, hard work,
Do.
Do.
Intermittent work.
Do.
Do.
Do.
Do.
Do.
Supervision.
Intermittent work.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Supervision.
Do.
Continuous, light work.
Irregularity of Dolier working.
Do.'
Intermittent work.
Irregularity of boiler working.
Intermittent work.
Do.
Do.
Do.
Do.
Do.
UNITED STATES STEEL OORPORATION,
3353
Tmneasee Coal, Iron and Railroad Co., Enaley Works, atatement showing rest hours of
fixed oceupations, S^ept. $8, 1911 — Continued.
BLOOMING AND HAIL MILL DEPARTMENT-Contlnued.
Num-
ber ol
men.
Hours.
Occupation.
In
turn.
Actual
work.
Rest.
Spelled.
Remarks.
atmng hoiUn.
4
4
1
2
12
12
12
12
10
10
10
10
2
2
2
2
0
0
0
0
Do.
Ashpit men .
Do.
Ashpit iiiGn helpers
Do.
Total
11
48
40
8
0
Pum'p house.
Pumpers
2
2
2
12
12
12
12
12
12
0
0
0
0
0
0
Intermittent work.
Air compressor men
Do.
Do.
Total
0
30
3S
0
0
Meclianical general.
1
1
1
1
1
1
2
2
1
1
1
1
2
1
1
10
12
12
11
10
10
12
12
10
10
10
10
12
11
11
10
12
12
10
0
9
9
9
0
9
8
9
12
9
0
0
0
0
1
1
1
3
3
1
1
2
1
0
2
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Supervision.
Intermittent work.
Millwright foremen
Do
Do.
Eugino machinist
Delay Incident to mechanical
condition.
Do.
Do.
Pipe fitters
Intermittent work.
Do.
Babbitt men
Do.
Do.
Tool men
Do.
Do.
Hydraulic valve men
Do.
Do.
Total
18
163
146
18
0
Soaking pit and gas vroductiont
mechanical.
Millwrights
1
10
9
1
0
Intermittent work.
Blooming mill, mechanical.
Millwrlghta
2
2
2
2
12
12
12
12
8
8
8
8
4
4
4
4
0
0
0
0
Millwrights' first helpers
Millwrights' second helpers
Motor tender
Do.
Do.
Intermittent light work.
8
48
32
16
0
'
Rail mill, mechanical.
Millwrlghta
4
4
2
12
12
12
8
8
8
4
4
4
0
0
0
Intermittent heavy work.
Millwrights' holpers
Do.
Do.
Total
10
36
24
12
0
FinliMng mill, mechanical.
Millwrights
1
1
2
1
4
12
10
2
2
2
2
2
ooooo
Intermittent work.
Do
12 1 10
Do.
MillwrlBhts' helners
12
10
12
10
8
10
Do.
Drill grmdors
Intermittent light work.
Do.
Total
9
58
48
10
0
3354
UNITED STATES STEEL CORPORATION.
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hmrs q
fixed occupations, Sept. M, iSii— Continued.
BLOOMING AND RAIL MILL DEPARTMENT— Contlnuefl.
Occupation.
Hours.
Num-
ber ot
men.
In
turn.
Actual
work.
Rest.
Spelled.
1
10
10
0
0
1
12
12
0
0
2
2
12
12
10
10
2
2
0
0
2
12
10
2
0
8
12
10
2
0
3
12
10
2
0
1
12
10
2
0
20
94
82
12
0
10
10
0
0
10
10
0
0
10
10
0
0
10
9
1
0
12
10
2
0
10
9
0
12
11
0
10
9
0
10
9
0
10
9
0
12
11
0
10
9
0
10
8
0
10
9
0
10
9
0
12
11
0
2
10
9
0
25
168
152
16
0
Remarks.
Insjtecting.
Chief inspector
Assistant inspector
Inspector's clerk
Section inspector
Drop test men
Inside inspector
Outside inspector
Extra inspector
Total
Roll shop.
Superintendent roll shop
Roll designer
Foreman
Roll turners
Do -....
Roll turners under instruction .
Do
Templet maker
Templet maker apprentice
Machinists
Do
Toolmaker
Craueman and roll brander
Roll ragger
Laborer
Do
Do
Total
Supervision.
Do.
Intermittent light work.
Do.
Do.
Do.
Do.
Do.
Supervision.
Do.
Do.
Interruptions incident to me-
chanical work.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Intermittent work.
Do.
Do.
Do.
Do.
BESSEMER ROLLING MILLS.
IS-inch bar mitt.
Heaters
Heaters* helpers..
Chargers
Chargers' helpers. .
Run down
RoUer
Finisher...
Catchers . .
Roughers.
Roughing hook
Finishing hook
Front hook
Second finisher
Dra§ outs
Straighteners
Cinder tapper and scale cleaner.
Engineer lor bar and guide mUl.
Scrap man
Truckmen
Shearmen
Shearmen helpers
Tail-end men
Conveyor men
Stockers
10
Waiting for steel to heat.
Do.
Waiting for steel to heat and
drawn.
Waiting for steel to heat.
Waiting for steel and waiting
to draw other force (one man
to a furnace).
Waiting for steel to heat.
Do.
Waiting for steel and rest
one-third of the time mill Is
operating.
Waiting for steel to heat.
Do.
Do.
Do.
Do.
Do.
Do.
Waiting for the shears.
Do.
Waiting for steel to heat.
Do.
Do.
Do.
Do.
UNITED STATES STEEL COBPOEATION.
3355
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hows of
fixed occupadons, Sept. 28, 1911 — Continued.
BESSEMER ROLLING MILLS— Continued .
Occupation.
Num-
ber of
men.
Hours.
In
turn
Actual,
work.
Rest.
Spelled.
Remarks.
S-iruih guide mill.
Heater
Heaters' helpers
Chargers
Run down
Roller
Roughers
Finisher
Catchers
Stranders
Pony roughers
Spell men
Straighteners
Shearmen
Shearmen helpers
Bundlers
Gaugers
Scrapmen
Engineers, 10-uioh engine. . .
Cinder tappers and scale cleaners
Truckmen
Stockers
Oil-inch plate mill.
Locomotive cranemen
Hookouts
Unhookers ~.
Stockers '
Transfer boys
Heaters, old furnace
Heater helpers
Drawers
Run-downs
Chalnmen
Hook men
Cinder tappers and sandwheelers
Heaters, new furnace
Rollers
First roughers
Second roughers
Third roughers
First catchers
Second catchers
Screw downs
Measurers
Tablemen
Straighteners
Annealers
Plate drag outs
Engineers
Engineer assistants
Salt boys
Chargers
Crone operators
Markers
Truckmen
Shearmen
Markers
First helpers
Second helpers
Third helpers..
Scrapmen .:..,..:
Drag-up men
Drag-up engineers
Scrap shrarmen
Scrap wheelers
Extra shear gang, plate mill.
Shearman
Marker
Helpers
9
10
10
Waiting for steel to heat.
Do.
Do.
Do.
Waiting for steel and rest
one-third of the time mill Is
operating.
Waiting for steel to heat.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Waiting for the shears.
Waiting fbr steel to heat, etc.
Do.
Waiting for the shears.
Waiting tor steel to heat. :
Waiting fbr steel.
Do.
Do.
Waiting on furnace.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Waiting on furnace, etc.
Waiting on furnace.
Do. f
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Waiting on the shearman.
Waiting on furnace.
Do.
Waiting on shearmen.
Do
Waiting on furnace.
Do.
Do.
3356
TTXTTED STATES STEEL COKPOBAHON.
Tatmttee Coal, Jhm aitd SaOroad Co., Etukg Wortt, statement Stowing rat houn o/
Jixxdaeaipaliong, Sept. i8, 79Ii— Continued.
FOUXDBY rrBXACE DIVISION.
bet of
Hours.
Remarks.
OcrapatkHL
In
Actual
TDlfc.
Bet. Spefled-
Fim mti teenifonxt.
Stocf lioase:
4
4
4
4
12
4
4
2
4
4
4
4
4
4
4
3
4
4
1
1
1
1
U
6
3
1
2
10
1
3
2
1
1
2
4
2
4
i
1
1
1
1
i
w
\
1
1
1
1
2
4
2
4
12
12
12
12
12
JO
12
iO
12
12
10
10
10
30
12
12
10
10
10
10
10
10
12
12
12
10
^2
12
10
10
10
10
U)
10
10
10
io
10
12
10
10
10
10
12
12
io
12 '
i
12
s
s
10
10
10
10
6
S
s
s
12
12
12
10
12
i2
10
10
10
10
10
10
10
10
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10
12
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8
10
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4
4
4
4
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4
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Da
Da
Da
Da
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CSnder mappo^
Stove repairer.
Stov« repeira- helper
4
ImiTaJd:
4 ::;:::::
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V«m1 hmtan
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2 1 Do.
Graders
Head off bearera
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2 1 Do.
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RfuiH TY';',
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DriT«B
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Do.
Do.
Do.
Sapervidne-
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Can^r-
UNITED STATES STEEL COBPORATION.
3357
Tmneaiee Coal, Iron and Railroad Co., Ensley Works, statement showing rest hours of
fixed occupations, Sept. 28, 1911 — Continued.
FOUNDRY FURNACE DIVISION— Continued.
Ocoiipatlon.
rftree ond/our/orc«i— Contd,
Stock house:
Forf man
Do
Soalemon
Topflllere
Top flllpra helpers
Ore rollers
Lime rollers
Coke rollers
Cagers.
Sweepers and grcasera
Stock dumpers
Scrap men
Cast house: ,
Foundrymcn
Stove tenders
Keepers
First helpers
Second helpers
Third helpers
Fourth helper
Clay man
Sweepers
Scrappers
Clnonr snappers
Stove repiurer
Stovo repairer helper
Open sand moulder
Iron yard:'
Foremen
Iron carriers
Shed breaker
Yard breaker
Graders
Off bearer
Sand and scrap man
Scaleman
Iron loaders
Engine room:
Blowing enghieer
Blowing^eaglueer helper. . .
Floating gang:
Foreman
Hot pot oleanai
Hot pot cleaner helper —
Cartmen
Laboru
Watchmen
Stable boss
Teamster
Num-
ber of
men,
Alice furnace.
Office and laboratory:
Chemist
Sampler
Messenger
Steam plant:
Head firemen
Water tender
Firemen
Boiler blowers
Ash rollers
Coal rollers
Stock house:
Foremen
Scale man
Top fillers
Top-ailers' helpers .
Ore rollers
Lime rollers
Coke rollers
Cagers
1
1
4
4
4
12
4
24
4
4
2
2
2
4
4
4
4
4
4
1
3
4
0
1
1
1
1
10
G
4
4
<>
2
1
-1
2
2
1
1
1
2
9
I
1
1
Hours.
In
tuiii.
Actual
work.
lOA
S
,S
8
8
8
lU
10
10
10
8
8
10
10
1)
12
12
10
10
10
10
10
10
10
10
1
12
12
?
V
12
1
12
12
4
10
10
1
12
s
1
12
8
3
12
12
1
12
10i*s
2
V2
lOVx
8
12
lOi^
U
2
I'o
io?sl
4
12
10;^
4
12
lOji
Remarks.
Rest. Spollod.
lA
4
lA
3
4
4
4
4
4
2
2
4
4
4
.1
2
1
.1
1
I
2 \' '.'.'.'.'.'.
4
4
1
Supervising.
Rest account force being full.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Taskwork.
Account furnace being full.
Supervising.
Between changes.
Work caught up with.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Supervising.
Task work.
Do.
Do.
Do.
Do.
Waiting on car shifts.
Light intermit tout work
Do.
Supervising.
Light intermittent work.
Do.
Do.
\\ ork caught up with.
Do.
SuperATSing.
Filling caught up witli.
Do.
Do.
Do.
Do.
Do.
Do.
3358
UNITED STATES STEEL COEPOEATION.
Tennessee Coal, Iron and Railroad Co., Ensley Works, statement shomng rest hows of
fixed occupations, Sept. t8, JSiJT— Continued.
FOUNDRY FURNACE DIVISION— Continued.
Occupation.
.4 lice /urnoM— Continued.
Stock house — Continued.
Sweepers and greasers
Stock dumper
Stock-dumper's helper
Coke drivers
Scrap men
Cast house:
Foundrymen
Stove tenders
Keepers
First helpers
Secon.1 helpers
Third helpers
Clay man
Cinder snappers
Wallow men
Stove repairer
Scrappers
Iron yard;
Foreman
Head shed breakers
Shed breakers
Head iron carriers
Iron carriers
Engine room:
Blowing engineers
Blowing-engineers' helpers
Grease wiper
Floating gang:
Fireman and mold r
Cartman
Laborers
Watchman
Stableman
Num-
ber of
men.
In
turn.
Kours
Actual
work.
8 i
8 I
IDA '
Rest.
Spelled.
12
12
lOA
12
12
9
12
10
12
10
12
10
12
10
10
8
12
10
12
10
10
10
12
8
in
10
12
8
12
8
12
8
12
8
12
12
12
12
!■>
12
10
10
10
10
10
10
12
12
10
10
4
4
liSr
lA
Remarks.
Filling caught up with.
Task work.
Do.
Filling caught up with.
Do.
Supervising.
Between changes.
Work caught up with.
Do.
Do.
Do.
, Do.
Do.
Do.
Do.
Supervising.
Task work.
Do.
Do.
Do.
Light intermittent work.
Do.
Do.
Note. — Mechanics and carpenters not included.
Tennessee Coal, Iron & Railroad Co.,
Birmingham,, Ala., September i9, 1911.
Dear Sir: I hand you herewith statement showing rest periods of fixed occupationB
at the Ensley Mills, the Bessemer Rolling Mills, the Alice and Bessemer Furnaces.
In the Ensley division we have not included the labor and mechanical departments,
they being on a straight lO-hour basis; the rest periods for them are of very small sig-
nificance. As I imderstand it, the information was intended to cover fixed occupa-
tions, and we have given it accordingly.
Yours, truly, Geo. G. Crawford, President.
Mr. J. A. Faerell,
President United States Steel'Corporalion, 71 Broadway, New YorJc.
I
UNITED STATES STEEL COEPORATION. 3359
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3360
UNITED STATES STEEL COEPOEATION.
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-HTIcC^lO'-Or^QOaO^
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UNITED STATES STEEL COEPORATION. 3365
[Telegram, copy to W. F. Palmer, Cleveland.]
United States Steel Cobporation,
Pittsburgh, February 7, 1912.
C. L. Close, New Yorh:
Answering message to Palmer, statement his letter October 23 to you still holds
good. Percentage men employed working regularly 12 hours a day, entire company
approximately 20 per cent blast furnaces, and steel works 65 per cent. Majority pro-
ducing labor open-hearth, Bessemer, and blooming mills begin work 6 p. m. Sundays,
end Saturday afternoon. Eod mill and majority mechanics and laborers loegin 6
a. m. Monday, end 6 p. m. Saturday. Majority producing labor these departments
work 12 hours, small number 8 hours, mechanics and laborers 10 hours. Labor rate
Pittsburgh 17^ cents, Cleveland 17 cents. Average daily wages December, 1911,
Bessemer $2.47, open-hearth $2.97, blooming mills $3.01, rod mill $3.69. Bessemer
average low, due to reduced tonnage one plant. Rod mill apparently high, due to
larger proportion tonnage men than in figures of other departments.
C. L. Miller.
[Telegram.]
United States Steel Corporation,
New York, N. Y., February 7, 1912.
Wm. p. Palmer,
President Ameriam Steel & Wire Co., Western Reserve Building, Cleveland, Ohio:
Will you please send me to-day, if possible, the time of day for starting and stopping
weekly turns, separately, in the following departments: Open hearth, Bessemer, roll-
ing mill, and finishing mills? Would also like number of hours constituting day's
work, the labor wage, and the average daily wage for these departments.
C. L. Close.
[Telegram.]
UNrrED States Steel Corporation, February 7, 1912.
W. P. Palmer,
President American Steel & Wire Co., Western Reserve Building, Cleveland, Ohio:
Are there any modifications or changes to make in your statement, letter October 23,
regarding 6-day week labor? I would like to have percentage of total men employed
working regularly 12 hours a day.
C. L.' Close.
Oppice op President American Steel & Wire Co.,
Cleveland, October 23, 1911.
Mr. C. L. Close,
Committee ojf Safety, United States Steel Corporation, New Yorh.
Dear Sir: Your letter of 20th instant received. In reply I inclose copy of letter
we are sending this day to Mr. James T. McCIeary, secretary, American Iron & Steel
Institute.
Trusting that this will be satisfactory.
YouiB, truly, Wm. P. Palmer, President.
Cleveland, October 23, 1911.
Mr. James T. McCleary,
Secretary, American Iron & Steel Institute, SO Church Street, New Yorh.
My Dear Sir: In reply to your letter of October 21, desire to say that in our blast
furnace and steel works we ate carrying out to the letter the recommendations of the
committee, in reference to the elimination of the seven-day week.
The wire mills needed little attention in this direction.
Yours, truly,' W. P. P., President.
(Copy to Mr. C. L. Close, committee of safety.)
3366 UNITED STATES STEEL COEPOBATION.
Office President, American Steel & Wire Co.,
Cleveland, October 9, 1911.
Mr. J. A. Farrell,
President, United States Steel Corporation, New York.
My Dear Mr. Palmer: Noting your letter of August 31 in reference to rest perioda
enjoyed by the men in the various occupations in our works, desire to say that we have
gone into the matter very fully.
It is somewhat difficult, as Mr. Miller explains, to estimate this in some lines of our
work. We have done our best, to give a fair statement of the case. The data incloaed
are submitted to you for your information. I have thought best also to inclose Mr.
Miller's letter, which explains in detail some features of the proposition.
Yours, truly,
Wm. p. Palmer, President.
Office Vice President and General Sttpbrintendent,
American Steel & Wire Co.,
Pittsburgh, Pa., Octobers, 1911.
Mr. A. S. Chisholm,
Assistant to President, Cleveland, Ohio.
Dear Sir: Replying to your letter of September 6 in regard to Mr. FaiTell's request
for information on the rest periods enjoyed by the men in various occupations in our
works. This particular question was made a feature of the special inquiry into the
labor conditions in the steel industry conducted by the Bureau of Labor during the
past year under a resolution of the United States Senate, and I presume that Mr. Far-
rell desires substantially the same information. Our reply is therefore limited to the
same occupations as those investigated by the Bureau of Labor, comprising all
employees at blast furnaces, steel works and rolling mills, including rod mills and
departments auxiliary thereto, but not including wire mills or finishing departments.
The agents of the bureau made it a point at each plant visited to question the super-
intendents on this subject. Naturally for a majority of the occupations precise
figures as to the proportion of the time during which the men are able to rest could not
be given, and the superintendents gave their personal estimates based on their own
observation and experience. In certain departments, such as the rolling mills, for
which delay reports are kept showing exactly the time that the men directly working
on the mills are idle, these reports were submitted to the agents to verify the super-
intendent's estimates. Again for a number of positions "spell hands" are employed,
and in such cases the rest period is definitely known. Records were kept of the replies,
and the attached statements are compiled from those records combining the answers
for similar occupations at the several works into one figure which represents approxi-
mately fhe average of the several superintendent's estimates.
For many occupations this question is a very difficult one to answer. Take, for
instance, the case of men in charge of rolling mill engines which run continuously
at constant speed. Such men are required to be on duty and alert during the whole
time that the mill is running, but there may be several hours during which no physical
exertion is called for. As a rule such men have more actual work to do when the mill
is shut down than when it is running. The answer to the question "How long such
men have for rest? " depends on the definition of that word. It will be observed that
the replies made by our steel works superintendents imply that these men are at work
about 90 per cent of the time. The rod-mill superintendents as a rule did not state
percentage, saying instead that the work was light and intermittent.
In the boiler houses the firemen, that is the men who actually tend the fijres, are
reported as occupied only 75 per cent of the time, while the water tenders, whose
duties are chiefly supervisory, are said to be employed 100 per cent. It would be
very misleading to draw the conclusion that a water tender's work is more arduous
than that of a fireman. Mechanics of all trades are reported as working all the time,
but it is well understood that that depends more on the individual than on anything
else.
For the wire mills and finishing departments which are not covered in detail, it
may be said in general that the condition is the same as'with mechanics; that is, that
the proportion of time occupied depends on the individual. A very large part of our
employees in these departments are paid on this piecework basis, earnings being
entirely dependent on individual effort.
Yours, truly, C. L. Miller,
Vice President and General Superintendent.
UNITED STATES STEEL CORPOBATION.
3367
ESTIMATED PEECEKTAGB OF ACTUAL WORKING HOURS IN BOD MILLS, AMERICAN STEEL
<t WIRE CO.
All employees working in direct connection with rod mills are on duty 12 hours.
The mills, however, almost never are scheduled to_ run more than 11 hours, there
being one or more recesses of at least an hour's duration for meals and for adjustment
of the mills, this last requiring attention from only a part of the crew. In addition
to these scheduled stops there are always delays for a variety of causes, which will
aggregate half an hour on the average under the very best operating conditions, and
may amount to considerably more. Thus, the actual running time of a rod mill is
very seldom more than lOJ hours, or 87J per cent. The positions involving heavy,
constant, manual labor, nervous strain or exposure to intense heat, are double manned
80 that after a short period of work the man is relieved or "spelled" by another, and
thus only works half the actual running time; or in some cases where one spell hand is
employed for two or three positions two-thirds or three-fourths of the time. The
principal occupations are listed below.
Roll hands. — Boughera and catchers are spelled as described above, except on con-
tinuous mills which are almost entirely automatic.
Heaters. — Men in charge of the continuous mechanically operated heating furnaces
now in general use have very little actual work to perform, nor are they exposed
except at occasional and rare intervals to intense heat. Their constant attendance is
required, but they are not at work more than 75 per cent of the time. In the case of
the old style hand-operated furnaces the men are spelled and work two-thirds of the
time.
Hookers, reelers, and conveyor men. — These men are at work only when mill is run-
ning and would average from 80 to 85 per cent. The work is not difficult, and relief
is obtained by exchanging positions.
Engine-room force. — Constantly on duty, but actual work is light and intermittent.
Millwrights' force. — The only heavy work is during shut down of mills to make
adjustments and repairs, say not over 15 per cent of the time. The remainder of time
constantly on duty, but usually at light work.
Boiler houses and shops. — Conditions are the same as reported for blast furnaces and
steel works.
Estimated percentage of actual working hours for various occupations, American Steel
& Wire Co.
BLAST FURNACES.
Occupation.
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Keeper
Helpers
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Clayman
Water tender
Cinder snapper
Stove tender
Stove cleaner
Skip hoist man
Charging car man
Coke dust man
Stock house foreman
Stock house laborers
eager
Larry man
Top fillers, No. 1 furnace.
Top fillers, No. 2 furnace.
Scrapman
Flue dust man
Monkey boss >. . . .
Cinder dump foreman . . .
Cinder dump laborers
Ladle house men
Ladle house crane
Casting-machine foreman
Ladle pourer
Troughman
Jack operator
Crane operator
Pig sticker
Filter-plant operator
Pump tender
Hours
per
Percent-
age of
tune
occupied.
80
80
90
80
90
85
90
95
90
90
90
90
90
90
90
80
80
90
90
80
90
90
100
90
90
90
90
90
75
80
80
85
Occupation.
Water tender
Boiler washer
Flue blower
Fireman
Ashman
Foreman pipe fitter
Pipe fitters
Do
Pipe fitters' helpers
Do
Blowing engineer, first
Blowing engineer, second
Oilers.. .;
Wipers
Ore bridge operator
Ore bridge inspector
Ore bridge greaser
Trestle foreman
Trestle laborers
Skuller foreman
SkuUer helpers
Millwright
Millwright helpers
Electric powerhouse engineer
Electric powerhouse oiler
Gas washer operator
Gas washer operator's helper .
Gas engine blowing room en-
gineers
Gas engine blowing room oil-
ers
Gas engine blowing room
wipers
Hours
per
turn.
Percent-
age of
tune
occupied.
100
80
80
80
80
100
100
90
100
90
100
100
100
100
90
90
90
90
90
90
90
90
90
100
100
100
100
100
100
100
17042— No. 50—12 8
3368
UNITED STATES STEEL COKPOKATION.
Estimated percentage of actiml working hours for various occupations, American Steel
& Wire Co.— Continued.
BESSEMER.
Occupation.
Blowers
Blowers
Blowers' assistant
Kegulator
Vesselman
Vesselman's helper
Vesselmen repairmen. .
Manganese man
Vessel scrapper
Bottom makers
Mixer foreman
Mixer foreman's helper
Mixer crane operator...
Cupola foreman
Do
Cupola iron tapper
Do
Hoistman
Do
Hoistman's assistant. . .
Top chargers
Do
Stockers
Do
Coke wheelers
Magnet crane operator.
Iron craneman
Steel pourer
Stopper setter
Stopper carrier
Stopper maker
Mola setter
Mold capper
Hours
per
turn.
Percent-
age of
tune
occupied.
100
90
100
90
75
75
75
100
90
90
90
SO
60
90
100
90
100
75
90
90
76
90
75
90
90
75
75
90
90
90
100
90
90
Occupation.
Mold scrapper
Hydraulic craneman
Ladle Uner
Ladle liner helper
Car pusher operator
Stripper operator
Slag crane operator
Ladle house crane operator
Scrap crane operator
Ladle house labor
Cinder dock foreman
Cinder dock laborers
Cupola liners
Cupola liners* helpers
Metal unloaders
Blowing engineers
Stack cleaner
Fan engineer. ."
First troughman
Skuller foreman
Condenser engineer
Pump man
Purifying man
Narrow-gauge engineer
Narrow-gauge brakeman...
Bottom-house craneman.. .
Mactiinist
Do
Water tenders
Fireman
Ash wheelers
Laborers
Do
Hours
per
turn.
12
\2
12
12
12
8
12
12
12
12
12
12
10
10
10
12
12
12
12
12
12
12
12
12
12
12
12
10
12
12
12
12
10
OPEN HEARTH.
Meltsr
First helper
Second helper
Pit foreman
Slagman
Pitmen
Charging machine men. .
Pull up
Stockers
Stock cranemen
Stock cranemen hook on.
Foreman stocker
Steel pourers
First ladleman
Second ladleman
Ladle crane operator
Furnace water tenders.. .
Stopper maker
Nozzle setter
Nozzle-setter helper
12
100
12
85
12
86
12
90
12
80
12
80
12
60
12
80
12
90
12
86
12
85
12
90
12
75
12
95
12
85
12
70
12
90
10
100
12
80
12
80
Stopper setter
Mold setter
Platform man
Car pusher
Stripper operator
Iron ladle craneman
Metal mixer
Metal-mixer helper
Mixing-house foreman . . .
Buggy repairman
MolQ-yard craneman
Mold-yard foreman
Narrow-gauge engineers .
Narrow-gauge brakeman
Stock weighers
Labor foreman
Laborers
Do
Ingot scale weigher
Millwrights
12
12
12
12
12
12
12
12
12
10
12
10
12
12
12
12
12
10
12
12
UNITED STATES STEEL COBPOEATION.
3369
Estimated percentage of actual working hours for various occupations, American Steel
& Wire Co. — Continued.
BLOOMING MILLS.
Occupation.
Roller..-
Manipulator
Rougher
Tableman
Shearman
Shearman helper . . .
Pullover man
Heater
Heater helper
Bottom makers
Pit craneman
Cover boy
Engineer 2 high
Engineer 3 high
Engineer's belper. . .
Conveyor engineer. .
Conveyor oiler
Cinderman
Scrapman
Billet hoist engineer
Hours
per
turn.
Percent-
age of
tune
occupied.
8
90
8
90 1
8
90
8
90
8
90
8
90
12
90
. 8
100
8
100
8
76
8
85
8
90
8
90
12
90
12
90
12
90
12
90
12
90
12
90
8
80
Occupation.
Billet hoist fireman
Narrow gauge engineer
Narrow gauge brakeman. . .
Scrap crane operator
Billet dock fonnan
Billet counter
Billet inspector
Labor foreman
Steel tracer
Steel recorder
Millwrights and macbinists
Laborers
Do
Water tenders
Fireman
Ash wheelers
Boiler washers
Boiler washer's helpers
Gas producer men
Hours
per
turn.
Percent-
age of
tune
occupied.
90
90
90
90
90
80
90
75
90
100
100
75
75
80
80
90
SHOPS.
Machinists...
Blacksmiths.
Carpenters...
Electricians..
Pattern shop,
Foundrymen
Boilermakers
Bricklayers. .
Reggers
10
100
10
100
10
100
10
100
10
100
10
100
10
100
10
100
10
100
Slag crusher
Electric-power engineers
Electric-power assistant engi-
neers
Water tenders
Fireman
Ash wheelers
All yard labor
Railroads
100
100
100
100
75
75
100
100 ■
National Tube Co.,
Pittsburgh, Pa., Fehruary 8, 1912.
Mr. C. L. Close,
United States Steel Corporation, New York, N. Y.
Dbak Sir: Mr. Schiller has referred your two messages of the 7th instant to 'this
office for the necessary attention. The data requested in the first telegram relating
tx) percentage of total employees working regularly 12 hours per day is given below:
Employees working 12 hours per turn 23.31 per cent 4, 614
Employees working other than 12 hours per turn 76.69 per cent 15, 177
Total 100 per cent 19, 791
These figures are based on reports for the month of May, 1911, at which time deta,iled
records were made up, from which we compiled this data, and the number of em-
ployees shown represent full turns worked. These data for the latter part of the year
have not yet been worked up, and it is impossible to compile same on short notice.
3370
UNITED STATES STEEL COEPOEATION.
We also give below the data requested in your second telegram, except that where
you refer to the "Labor wage" we are giving you the rate paid for common labor:
Department.
Open hearth:
Lorain
Bessemer steel works:
Lorain
National
Riverside
Rail mill:
Lorain
Rolling mills:
Continental
Lorain
National
Riverside
Finishing mills:
Continental
Lorain
National
Pennsylvania
Riverside
Syracuse
Kewanee
Standard:
Hot mills
Another
Christy Park
Weekly turns —
Begin,
6 p.
6 p.
6 p.
5.45
6 p.
4 a.
6 p.
6 p.
6 p.
6.15
6..'i0
6 p.
6.15
lip,
7 a. :
6.45
m., Sunday...
m., Sunday. .-
m., Sunday. .-
p. m., Sunday
m., Sunday...
m., Monday...
m., Sunday. . -
m., Sunday. ..
m., Sunday...
a. m., Monday
a. m., Monday
m., Sunday...
a. m., Monday
a. m., Monday
m., Monday...
m., Monday...
m., Sunday..
1., Monday
I. m., Monday
End.
4.10 p. m., Saturday^
4.10 p. m., Saturday '
4.50 p. m., Saturday i
1 p. m., Saturday
4.10 p. m., Saturday!.
2 p. m., Saturday
4.10 p. m., Saturday '
4.30 p. m., Saturday 1
3 p. m., Saturday
12.30 p.m., Saturday.
4.10 p. m., Saturday..
4.30 p. m., Saturday..
12.30 p. m., Saturday.
11.40 a. m., Saturday.
12 m., Saturday
4 p. m , Saturday
4 p.m., Saturday
4 p. m., Saturday
1 p. m., Saturday
Com-
Hours
mon
worked.
labor
rate.
12
SI. 75
12
1.75
12
1.75
12
1.70
12
1.76
12
1.75
12
1.76
12
1.75
12
1.70
10
1.75
10
1.76
10
1.75
10
1.-75
10
1.70
10
1.75
10
1.70
10
1.65
10
1.65
10
1.76
Average
dally
J2.95
67]
1312.80
62|
2.78
2.85
2. 92 1
3.07.
2.18
2.47
2.38
2.24
2.18
2.56
2.55;
2.93
' Men paid up to 6 p. m., but quit work at the time given, subject to mill delays, heats in lurnace which
have to be rolled, etc.
The data given in respect to turns cover only the operations of the manufacturing
units and do not cover the various supporting units, such as power plants, pumping
stations, shops, foundries, etc.
We trust you will find this data in satisfactory shape, and remain.
Yours, very truly,
B. C. MoisB, Auditor,
Per C. B. Foster.
[Telegram.]
Wm.
B. Schiller,
President National Tube Co.,
United States Steel Corporation,
Fehruary 7, 1912.
Frick Building, Pittsburgh, Pa.:
Will you please send me to-day, if possible, the time of day for starting and stopping
weekly turns, separately, in the following departments; open hearth, Bessemer,
rolling mill, and finishing mills. Would also like number of hours conatituting'day's
work, the labor wage, and the average daily wage for these departments.
0. L. Close.
[Telegram.]
United States Steel Corporation,
.^ February 7, 1912.
Wm. B. Schiller,
President National Tube Co., Frick Building, Pittsburgh, Pa.;
Will you please give me percentage of total employees in your company working
regularly 12 hours per day?
C. L. Close,
[Telegram.]
United States Steel Corporation,
Pittsburgh, Pa., February 8, 1912.
C. L. Close:
Answering your two telegrams of yesterday to Mr. Schiller. Data requested is
being forwarded to-day by mail.
B.C. MoiSE. I
UNITED STATES STEEL COEPOBATION. 3371
National Tube Co.,
Pittsburgh, Pa., Decembers, 1911.
Dear Mr. Close: In response to your letter of the 7th instant, I think you have
misunderstood Mr. Ewing's correspondence. The 6-day week plan was put into
effect at all of our works on August 1 last. The plan employed was the printed plan
sent out by the Amrican Iron & Steel Institute, except that the extra relief men are
kept in fixed positions and the other members of the groups are moved up to the posi-
tions next above their regular ones on the rest days of the men immediately above
them, a study of the subject having satisfied us that this modification worked out
rather better than to change the relief men from one position to another and that it
helped in some measure to overcome the objections of the men formerly working
7 days against the loss of one day's compensation, because for a part of the time they ■
work each week they receive a higher compensation than is paid thsm when they
work in their regular positions; and, further, bucause the plan as modified tended to
increase the average efficiency of the whole force, because it familiarized the majority
of the men with the duties of the positions next above their regular ones. In cases
of emergencies, if men are called out and work a full turn, they are laid off one day
before the next seven days have expired, so that in every case each man gets a day's
rest once in seven days.
As to the extent the hours of labor have been reduced, I don't know that I quite
comprehend what you want. In all continuous employment, where the men formerly
worked seven days and worked a long turn of either 18 or 24 hours, they now work
six turns only of the number of hours that constitute the regular day's work and do
not in any case work more than that. In other words, the 12-hour men work 6 days
of 12 hours each and the 10-hour men 6 days of 10 hours each.
When the plan was sent out originally to the works' managers, they were advised
they could make such modification of it as suited their local conditions, provided it
accomplished the two results desired, namely, the abolishment of the 7-day week and
the long turn, but after several conferences on the subject it was deemed best for all
to follow the same plan, and this has been done, and, as stated previously, the plan
has been in effect at all of our works since the 1st of last August.
Yours, very truly,
Wm. B. Schiller, President.
Mr. C. L. Close
(Care of United States Steel Corporation),
New YorJc, N. Y.
National Tube Co.,
Pittsburgh, Pa., October 17, 1911.
Dear Sir: Replying to your communication of the 13th instant, I beg to advise
that the 6-day-week plan was put into effect at all of the works of this company on
August 1 last. The method by which this was accomplished was virually the printed
plan sent out under the auspices of your institute, except that the extra relief men
were kept in the lower positions of each group constantly and the other members of
the group were moved up to the positions next above their regular ones on the rest days
of the men immediately above them.
To give you a better idea of the actual method I inclose a plan showing how this
was accomplished. This plan, you will observe, groups six different positions which
under the old system involved the employment of 12 men, 6 on each turn. All these
12 men work on Sunday, their rest periods being on the different week days and
the relief men have their rest period on Sunday. It was found that this modification
worked out rather better than to change the relief men from one position to another,
and in adition it helped to overcome the objections of the men against the loss of
one day's comipensation. The results seen and hoped for are as follows;
(1) It was the right thing to do and therefore should be done, it being our opinion
that no man should be compelled or permitted to work? days each week, and either
18 or 24 hours consecutively every two weeks in changing from day to night or night
to day.
(2) It is believed that the plan will in time increase the average efficiency of the
whole force affected, because it familiarizes 10 out of the 14 men with the duties
of the positions next above their regular ones.
(3) It is believed that the adoption of this plan will in time enable us to secure
men of higher average intelligence in our blast-furnace departments. There has been
a marked decrease in the intelligence of these employees during the past 12 or 15
years, largely, we believe, because intelligent men did not wish to work 7 days every
week, and therefore sought employment in other departments.
3372 UNITED STATES STEEL. COBPOBATION.
The inauguration of the plan necessitated some little increase in the force of time-
keepers at our larger works, but the additional expense is coniparatively insignificant.
It is believed by our works managers that in a few months' time the men will be en-
tirely reconciled, if they are not now, and would not willingly go back to the old plan.
It is also believed by our works managers that the regular crews whose rest periods
come on week days, and the same day each week throughout the year, will after a
time prefer to have their rest day come on a week day rather than on Sunday, because
of the greater opportunity for entertainment and amusement.
If any of the members of the institute would like to have additional information
I shall be pleased to answer any of their communications, or it they desire I would
be glad to extend permission to them or their representatives to visit our works and
. make a personal study of the operations of the plan.
Yours, very truly,
Wm. B. Schiller, President,
Mr. Ja8. T. McCleary,
Secretary American Iron & Steel Institute,
SO Church Street, New Yorh, N. Y.
American Iron & Steel Institute,
Hudson Terminal Building, 30 Church Street,
New York, December 6, 1911.
My Dear Mr. Close: Referring further to our telephone conversation of this
morning in connection with the 6-day-week plan. For your information I inclose
copy of a letter from Mr. William B. Schiller, president of the National Tube Co.,
Pittsburgh, which gives an idea of the situation as relating to their particular opera-
tions.
Trusting this information will aid you in assembling your data, I am.
Very truly, yours,
Thomas Darlington,
Secretary of the Welfare Committee.
Mr. C. L. Close,
(Care of United States Steel Corporation),
Tl Broadway, New Yorlc City.
National Tube Co.,
Pittsburgh, Pa., October 16, 1911.
Dear Sir: Immediately on receipt of your letter of August 31, asking for the
average hours of rest and active labor for the different classes of our employees, we
set about collecting this information and it reached me in tabluated form October
5, but I found that it was not in proper shape and that the information had evidently
been compiled hastily and was not very reliable. Inasmuch as I felt you wanted this
information without much delay I started to have the periods of rest taken at a number
of the typical positions at our National and Lorain Works. This is correct and reliable,
as shown on the inclosed statement, which gives the number of hours constituting
the standard day for each of the positions, me idle time in hours and minutes, the
working time in hours and minutes, and the percentage this actual working tinie is
of the total hours constituting the turn, which I trust is in the shape you desire it.
Yours, very truly,
Wm. B. Schiller, President.
Mr. J. A. Farrell,
President United States Steel Corporation, New York, N. Y.
UNITED STATES STEEL COEPOEATION.
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UNITED STATES STEEli CORPORATION. 3377
Illinois Steel Co., Commercial National Bank Building,
Chicago, February 8, 1912.
Mr. 0. L. Close
(Care of United States Steel Corporation),
Empire Building, New York City.
•Dear Sir: Answering your "wire No. 448 of even date."
South works — Schedule for starting and stopping weekly turns.
Open hearth, starts 6 p. m. Sunday, stops 6 p. m. Saturday.
Bessemer department, starts 3 a. m. Monday, stops 3 a. m. Sunday.
Rolling mills and finishing departments ,start 6 a. m. Monday, stop 6 a. m. Sunday.
Common labor wage, 17 cents per hour.
Average daily wage:
Open hearth No. 2 f 3. 06
Rail mill No. 1 2. 87
Rail mill No. 2 2. 55
Plate mill No. 1 2. 84
Plate mill No. 2 2. 57
Structural mill 2. 65
Twelve hours constitute a day's work, except for mechanical men, w-ho work 10
hours, and tonnage men in Bessemer and rail departments, who work 8 hours.
Gary works — Schedule far starting and stopping weekly turns.
Open hearths, start 6 p. m. Sunday, stop 6 p. m. Saturday.
Rolling mills and finishing departments, start 6 a. m. Monday, stop 6 a. m. Sunday.
Common labor wage, 17 cents per hour.
Average daily wage:
Open hearth No. 2 |2. 94
Open hearth No. 4 3. 06
Kail mill No. 1 2.78
BUletmill 2.65
Twelve hours constitute a day's work, except for mechanical men, who work 10
hours.
Yours, truly, E. J. Buffington, President.
[Telegram.]
United States Steel Corporation,
Chicago, February 7, 191^.
C. L. Close:
No modification or changes to be made in my statement. Letter October 4 to
Mr. Boiling concerning 6-day labor, except Grary works, has made additional progress,
and all works report slight deviation from plan account extraordinary weather condi-
tions. This deviation not permanent, however. Will wire you percentages requested
later. Data now being obtained therefor.
R. W. Campbell.
[Telegram.]
United States Steel Corporation,
Chicago, February 7, 19U.
C. L. Close:
Your telegram — ^Will mail reply to-morrow Twentieth Century Special delivery.
Statement is lengthy, but can telegraph to-morrow if necessary. Please advise.
E. J. BUFHNGTON.
3378 UNITED STATES STEEL. COEPOEATION.
[Telegram.]
United States Steel Corporation,
February 7, 191%.
'R. W. Campbell,
(Knapp & Campbell), .
Commercial National Bank Building, Chicago, III.:
Do vou have any modification or changes to make in your statement, letter October
4, to Mr. Boiling, concerning 6-day labor. Would also like to know percentage of
total men employed working regularly 12 hours per day.
C. L. Close.
[Telegram.]
United States Steel Corporation,
February 7, 19t2.
E. J. BUFFINGTON,
President Illinois Steel Co.,
Commercial National Bank Building, Chicago, III.:
Will you please send me to-day, if possible, the time of day for starting and stopping
weekly turns, separately, in the following departments: Open hearths, rolling mill,
and finishing mill, for both Cary and South Works. Would also like number of
hours constituting day's work, the labor wage and the average daily wage for these
departments.
C. L. Close.
Knapp & Campbell, Commercial National Bank Building,
Chicago, October 4,1911.
Mr. Raynal C. Bolling,
Empire Building, New York City.
Dear Sir: On receipt of your request under date of September 23, for information
concerning the manner and extent of the installation of the 6-day week in the plants
of the Illinois Steel Co., I took the matter up with Mr. Buffington and have been
advised by him that the 6-day week haa been put into effect in all of our plants to a
somewhat greater extent in some than in others.
At Joliet, prior to the introduction of the plan during the past summer, 46 per cent
of the men enrolled were working 7 days per week. Now there are less than five-
tenths of 1 per cent of the men enrolled working 7 days continuously. This small
percentage of men working 7 days continuously comprises a very few men in the
machine shop and yard under emergency conditions.
At South Works 4 per cent of the men enrolled are working 7 days continuously and
it is reported that a material reduction will be made in this percentage by the South
Works management.
At Milwaukee Works the plan is in force throughout the plant, and there are no men
working longer than 6 days continuously.
At Gary Works not quite so much progress has been made, but the plan is still being
furthered and as fast as possible will be put into full effect. You will recall that con-
ditions at Gary Works are different from those surrounding the older organizationfl at
South, Joliet, and Milwaukee, and that it is hardly possible to make as much progress
in a new departure such as this there as at our other works.
The plan has not been coupled with any material limitation upon the daily hours
of labor, except that at the change of week turns in some of the departments some
men work more than 12 hours, but such men are given a compensating longer rest
period thereafter.
All of the superintendents report complaints from certain classes of employees on
account of the lessened amount of the weekly wage received.
I trust this gives you the information which you desire, but if there is any further
information or data which you wish, kindly let me know and I will be very glad to
obtain it for you.
Yours, very truly, R. W. Campbell.
UNITED STATES STEEL COEPOKATION. 3379
Illinois Steel Co., Commekcial National Bank Building,
Chicago, August 8, 1911.
Mr. J. A. Farrell,
President United States Steel Corporation, New York City.
Dear Sir: Replying to your inquiry dated August 5, the labor enrollment of the
several subsidiary companies of the United States Steel Corporation in the Chicago
district is aa follows:
\ Employees.
Illinois Steel Co. (including Gary Works) 18, 000
American Steel & Wire Co 4, 600
Elgin, Joliet & Eastern Railroad Co 3, 841
American Sheet & Tyi Plate Co > 1, 500
American Bridge Co 1 1^ 200
None of these subsidiary companies excepting the |Illinois Steel Co. has statistics
showing various nationalities under labor enrollments. Of the Illiuois Steel Co.'s
labor enrollment approximately 75 per cent are registered as of various nationalities,
and approximately 25 per cent are recorded as non-English speaking. The attached
tabulation shows the number of each of the various nationalities represented in the
Illinois Steel Co.'s enrollment. While similar statistics of the other subsidiary com-
panies represented in this district are not available, it may be assumed that none of
them has so large a percentage of foreign nationalities represented in their labor enroll-
ment.
The locations of the manufacturing plants of these several subsidiary companies in
the Chicago district are as follows:
Illinois Steel Co. — Three plants in the city of Chicago, 1 plant at South Milwaukee,
Wis.; 1 plant at Joliet, 111.; 1 plant at Gary, Ind.
American Steel & Wire Co. — Two plants at Joliet, 111.; 1 plant atWaukegan, 111.;
1 plant at De Kalb, 111.; 1 plant at Anderson, Ind.
American Bridge Co. — One plant at Gary, Ind.
American Sheet & Tin Plate Co. — One plant at Gary, Ind.
None of the companies at any of these jSants, excepting those located at Gary, Ind.,
undertakes/ to furnish housing facilities for employees; each company at all manu-
facturing plants, excepting at Gary, Ind., relying wholly upon the housing facilities
generally available in the communities where l£e respective manufacturing plants
are located. The quality of such housing facilities naturally varies in the various
communities.
The housing facilities in South Chicago adjacent to the South Works plant of the
Illinois Steel Co. are generally poor, especially the housing facilities used by the
foreign labor. ^ The Illinois Steel Co. of course exercises no control over these facilities
and can not exercise any such control by reason of the diversified ownership of such
housing facilities. The same is true concerning the housing facilities surrounding the
other two plants of the Illinois Steel Co. in the city of Chicago.
At Joliet, 111., the housing facilities are somewhat better than in Chicago.
These facilities at Waukegan and De Kalb, 111., and Anderson, Ind., on the whole
are considerably better than the housing facilities at either Chicago or Joliet, 111.
At Gary, Ind., the Gary Land Co., a subsidiary of the United States Steel Corpora-
tion, has built and rents to the employees of the Gary Works approximately 500 dwell-
ing houses, the aggregate cost of which was approximately $1,125,000. These dwelling
houses are of good construction, each containing all modem facilities, such as water,
gas, electricity, and proper sewer connections. The rental value of these houses
ranges from ?10 per month to approximately $30 per month. Nearly all of these
dwellings are now occupied.
The Gary Land Co. has under construction 200 dwelling houses intended for the
use of the employees of the American Sheet & Tin Plate Co., and also 294 dwelling
houses intended for the use of the employees of the American Bridge Co., at the Gary,
Ind., plants of these two companies. All of these houses are located in what is known
as the Gary Land Co.'s first subdivision, in which the land company originally owned
all of the lots.
Within this first subdivision the land company graded and paved with macadam
or concrete blocks approximately 22 miles of streets, laid sidewalks, installed modem
gas, water, and electric light plants, and a complete system of jewers. Each lot in
the subdivision is connected with these improvements and utilitiefe.
' Estimated labor enrollment of these two companies after their respective plants at Gary, Jr<3., ore
in full operation.
3380 UNITED STATES STEEL .COEPOBATION.
It was necessary for the company to build, at its own expense, a large number of
houses to meet the first needs of the employees. Lots are offered for sale on terms of
easy payment, at approximately the cost of the land and the improvements, imder
requirement that the purchaser shall bmld a house of approved design and character
within 18 months after purchase . Employees of the steel company are offered special
discount from the list price of lots. The land company offers for sale also to employees
of the subsidiary companies dwelHng houses at approximately cost value, on terms of
easy payment, with liberal protection to the purchaser in case of his leaving the em-
ploy of subsidiary company, either voluntarily or involuntarily. Quite a number
of employees have availed of this opportunity to purchase lots or dwelling houses.
Nowhere, excepting at Joliet, lU., do the companies attempt to do directly any
community or social-betterment work, the idea being that more efficient work and work
more acceptable to the employees can be done by cooperating with community ac-
tivities for betterment work.
For the reason that Gary, Ind., is an industrial community of recent development
more of this cooperative community work is attempted by the subsidiary companies
there than perhaps at other places where these companies operate plants.
Churches of all denominations represented in Gary have received substantial aid
from our companies. The land company has furnished free a site for a hospital to be
administered by the Sisters of Mercy, an organization associated with the Catholic
Church. Prior to the erection of a permanent hospital building the Sisters of Mercy
have administered hospital services to the community, using temporary buildings
provided by the land company.
One of the most promising community activities for social betterment in Gary
centers around the Young Men's Christian Association, for which Mr. Elbert H. Gary
has provided a large building of fireproof construction throughout, containing a dor-
mitory of 67 rooms, library, educational department, athletic department equipped
with swimming pool and modem gymnasium, and a general assembly roorn. Our
several companies have contributed liberally to the furnishing of this building and
will contribute to its administration. Employees of all companies represented at
Gary are encouraged to take active interest m this association.
Athletics, consisting principally of baseball, are encouraged at practically all of
the plants, and at some of these plants well-equipped baseball grounds, located near
the manufacturing plants, are provided for the employees.
At all of the plants of the several companies careful attention is given to plant
sanitation and safety, provision for this being administered by specially organized
departments therefor. Lai^e sums of money are spent to minimize risk of injuries
to employees and to provide best plant sanitation.
At Joliet, 111., in addition to cooperating with community activities along the line
of social betterment, the Illinois Steel Co. has built a club house at a cost of approxi-
mately $60,000, containing a gymnasium, library, rooms for educational work, such
as mechanical drawing, domestic science, ete., and a large assembly room used for
lecture courses, musicales, etc. This club is under the supervision of a paid repre-
sentative of the Illinois Steel Co., but is managed by a board of directors made up of
selected employees of the different subsidiary companies having plants at Joliet. The
families of employees of all subsidiary companies are eligible to membership in this
club. The membership dues are $1 per year, the membership entitling members to
all of the privileges of the club without any additional cost. The purpose of this
membership charge is evident, namely, to encourage a feeling of independence of
members.
It is difficult to recognize or find beneficial results from these activities upon the
foreigners in our employ, but undoubtedly there is an ultimate influence for good.
The foreign labor available at the company's mills is of a more or less migratory
character, apparently undergoing constant changes. Generally speaking, this foreign
labor is engaged in what is termed common labor, where no particular skill is required.
Ultimately a certain percentage of this "floating labor" becomes more efficient and
contributes to our supply of skilled labor and becomes a part of our permanent labor
enrollment.
A prevailing opinion, which seems well founded, is that the public schools in indus-
trial communities exercise a larger influence upon the social conditions of the for-
eigners through their children than any other activity. True, only a small percent-
age of the foreign labor employed at our miUs represent any family life, hy far the
greater part of tiese foreigners coming from their native homes without famihes. But
undoubtedly many of them come with families of children, and through the influence
of the public schools upon these children a good influence is exerted upon the parents.
Yours, very truly,
E. J. BuFFisGTON, President.
UNITED STATES STEEL COBPOEATION. 3381
Statistics from nationality report Illivms Steel Co. accounting department, 1911.
Conntry.
Total of
each na-
tionality.
Unlfed States (26+ per cent) 4,621
Gennan Bmpiie 1, 292
England 1,030
Aostiia-Hangary : 4, 622
Italy 347
Norway 139
Sweden. i 654
Russian Empire 2, 580
Denmark. 17
Servia 1,249
France 13
Belginm 4
Mexico 1
Bulgaria ' 149
Boumania I 554
Japan 7
Australia i 1
Switzerland '. 9
Turkey i 56
Persia 12
Greece 63
Spain. .' 8
Montenegro 3
Total i 17,431
Englisti
speaking.
Non-En-
glish
speaking.
4,621
1,156 I
1,030 ,
2,895
210
137 I
624
1,046
17
578
12
4
1
78
253
7
1
9
12
n
24
12,735
136
1,727
137
2
30
1,534
671
1
n
301
39
3
•4,696
August 7, 1911.
Mr. T. W. RoBiKSON, First Vice President.
Deak Sir: Referring to our experience with the coffee house at South Chicago:
The building was completed and put in commission in March, 1906. The upper
story was used as an office by the Chicago, Lake Shore & Eastern Railroad 'Co., while
the lower floor was fitted up for the purpose of dispensing hot coffee to such employees
as cared to take advantage of a comfortabl& room in which to eat their lunch. A part
of this floor was arranged with small booths similar to the booths in accounting rooms,
so that each man enjoyed as much privacy as he wished while eatino; his food. Fixed
stools, such as are found at lunch counters, were suitably arranged in front of these
booths. In another portion of the building was a water-doset, wash rooms, toilet for
women and children, and benches upon which the women and children could rest.
In one comer of the room was a counter upon which was arranged a coffee urn, and from
which coffee was dispensed at the nominal sum of 1 cent per cup. This, of course,
did not pay the cost of making the coffee, and fell far short of contributing toward the
cost of running the establishment. A record was kept of the attendance, and while
I have not the figures at hand, my recollection is that not more than an average of
nine men a day took advantage of the conveniences.
I took the matter up with titie priests of different parishes, who called the attention
of their congregations to the coffee house and also published in their church periodi-
cals notices that such conveniences were furnished by the company. Every means
was exhausted to bring the matter before the attention of the employees. At a con-
ference with the priests, held in my office some months after starting the venture,
they informed me that upon inquiry a number of men refused to come because they
thought the company had ulterior motives in handing out such kindness. Others
stated that on account of the short term at noon — ^namely, one-half hour — it was
impossible for them to get from and back to their work on time. I am inclined to
beneve that the former was the principal reason, because the men continued to sit
out on the sidewalks during the summer months and to visit the saloons in the winter
time.
I am not sure of the exact date on which we discontiaued the coffee house, but it
is my recollection that in the late spring or early summer of 1907 we decided that,
the attendance not having increased, much better use could be made of the building
for office purposes than along the lines for which it was proposed .
I think this, in a general way, covers the history of the venture.
Yours, truly,
W. A. Field, General Superintendent.
SiJSii
UNITED STATES STEEL, COEPOBATION.
SOUTH WORKS.
Departments.
Hours
per
turn.
Duration of rest
periods.
Frequency ot rest periods.
Blast furnaces:
12
12
About Ihour
Irregular
Between cleaning up one cast and startln
next.
Occasionally acoofdlng to rate oJ drivln
furnace.
Between cleaning up one flush of dndo
12
12
do
do
and next. .
Between switches by raihoads.
12
12
8
12
8
1 '^
12
12
do
Between trips.
do
Labor not exhausting; practically no res
Rail mill No. 1:
Bloom levermen
i hour
periods, but have idle periods when"fur
nace slows up for any reason.
Bloom-shear levermen
First roughing levermen —
Second roughing levermen..
Two men talce turn about each half hour
do
Do.
Ingot-buggy operator
Rail mill No. 2:
Roughing levermen
Intermediate levermen
About J of time...
About i ot time . . .
J time
One spell hand on four jobs.
Hot-saw levermen
Butt pullers on hot saw
Four men on these jobs.
Hot and cold dog operators.
Slabbing mill, cranemen
Average 2J hours..
Irregular
do
One spell hand on four jobs.
Plate mill No. 1
and In addition spell each other wtaor
necessary.
Charging machine men spell roll handf
when not charging furnaces or drawing
material.
Levermen and roll hands are spelled a
various times by "utility man."
Roll cranemen spell other cranemen.
Cranemen spell as required.
Plate mill No.2
do
Foundry
12
. ..do ..;
do
Note.— Nearly all the occupations In the rolling mill are such that the men are not constantly employed,
but have more or less time for a spell during the turn, due to rolling conditions.
JOLIET WORKS.
Blast furnaces:
Cast-house men
Stock-house men
Top fillers
Billet mill:
Bloom mill levermen
Bloom shear levermen
Billet shear levermen
Roughing levermen
Finishing levermen
Bloom butt conveyormen...
Billet butt catcher
Ingot buggy operators
Continuous rod mill, shear stop
men.
No. 1 rod mill:
Reelers and oilers
Drag conveyormen
Bundle conveyor (take off) .
12-inch roll hands
First pass roll hands
Second pass roll hands
Third pass roll hands
Fourth pass roll hands
No. 2 rod mill:
Reelers and oilers
Drag conveyormen
Bundle conveyors (take off).
14-inch pass roll hands
First pass roll hands
Second pass roll hands
Third pass roll hands
Fourth pass roll hands
15 minutes.
12 20 minutes.
12 i 30 minutes
12 do
12
12
12 1
.do.
-do.,
.do.,
-do.,
-do.,
-do.,
-do.,
-do..
.do.,
.do.,
-do-
.do.,
.do.,
.do.,
.do..
.do..
Work about J time; rest about i.
Work about I time; rest about I.
Work about | time; rest about J.
Every 16 minutes.
Every 40 minutes.
Every hour.
Every 30 minutes.
Do.
Do.
Every hour.
Every 30 minutes.
Do.
Do.
Do.
Do.
Do.
Do.
Every hour.
Every 30 minutes.
Do.
Do.
Do.
Do.
UNITED STATES STEEL CORPORATION.
JOLIET' WOEKS— Continued,
3383
Departments.
Hours
per
turn.
Duration of rest
periods.
Frequency of rest periods.
Morgan mill:
Stop men (laborers) .
12'
12
12
12
12
12
12
12
12
12
do
Every hour.
Meithant mill:
Eougliers and hookers. .
Finishers
15 minutes
20 minutes
8 minutes
Every 15 minutes.
Stranders
Catchers
Btraighteners
SpIKa'factory:
PSljging-maohine feeders
.Forging-machiue chargers. . .
Conveyor boys
Every 52 minutes.
20 minutes
..do
Every 40 minutes.
12 minutes
20 minutes
.do
Every 48 minutes.
Splioamilli
Pull-out at fnrnace
Doi
Bending press operators
15 minutes
Every 45 minutes.
MILWAUKEE WOEKS.
Blast furnaces, all regular men
Merchant mills:
Roughers
Finishers
Pass boys
Stranders
Boughers
Btianders
Irregular..
30 minutes.
20 minutes
30 minutes
20 minutes
do....
Have about IJ hours spare time during
their shifts.
Every 30 minutes.
Every 40 minutes.
Every 30 minutes.
Every 40 minutes.
Do.
Illinois Steel Co.,
Chicago, SepUmber 29, 1911.
Mr. J. A. Pabeeil,
President United States Steel Corporation, New YorTc City.
Dear Sik: Answering, you letter of Augpt 31, asking that we submit a statement
showing the average hours of rest for the different classes of employees at our several
plants, some difficulty has, been experienced in having, our general superintendents
understand exactly what is wanted. From South, Joliet, and Milwaukee Works we
have obtained data which in a way answers your question. It is realized that these
statements are not in just the form to. give fullest information concerning your inquiry,
but rather than delay reply longer it isthought best to submit the inclosed statements
of the works.
The statement for Gary works will follow later.
Conditions in different departments, and sometimes in the same departments, are
so varying as to make difficult a comprehensive statement accurately representative of
the departments.
Trusting that the inclosed statements will be of some service to you, I am,
Yours, very truly, ^ . ,
E. J. BuTFiNGTON, Presiothit.
Bessembe & Lake Erie Railroad Co.,
Pittsburgh, Pa., October 27, 1911.
Mr. C. L. Close,
Ccmmittee of Safety, UnitedStates Steel Corporation, New York.
Dear Sir: Answering your letter of the 20th instant, relative to the extent to which-
this company has put into operation the six-day week, and to what extent hours of labor
have been reduced, I inclose herewith letter of Mr. E. H. Utl'ey, general manager,
which I hope will give you the information desired.
Yours, truly, J.H.'Rsbv, President.
17042— No. 50—12 9
3384
UNITED STATES STEEL, CORPOEATION.
Bessemer & Lake Erie Railroad Co.,
Pittsburgh, Pa., October 2S, 1911.
Mr. J. H. Reed,
President, Building.
Dear Sir: Replying to letter of Mr. C. L. Close, of the committee of safety, dated
October 20, in regard to hours of labor, I quote from the statement compiled for Mr.
Farrell and addressed to you September 22, which covers the points raised by Mr. Close:
"Below is given a statement showing the average of active labor and average hours
of rest for the different classes of employees in the transportation department, taking
the month of August as a basis:
Superintendent's, and other ofiBces
Station agents and clerks
Train dispatchers (Federal law)
Telegraph operators (Federal law)
Linemen
Fasseneer-traln service
Through freight-train service
Conneaut Branch and Wallace Junction drag service
Local pick-up service
Mine service
Construction work-train service
Yard service
Average, all employees
14 13
"In the mechanical department we might divide our employees into two classes,
those working 10 hours per day and those working 12 hours per day.
"Shopmen s hours are from 7 a.m. to 12 m., anal p. m. to 6 p. m., with the hour for
dinner between 12 m. and 1 p. m., making 10 hours on duty. While they are on duty
for this period of time and are supposed to be working all of that time, yet the nature
of the work is such that the task is not arduous. Machinists, for instance, place a
piece of work in liieir machine, and after starting their feed all they have to do is to
watch the machine so that nothing unforeseen occurs. Blacksmiths are making
forgings or welds, and while their work is hard for part of the time, yet the steel has
to be heated in a forge and they are not performing any physical labor in that time,
though their attention must be kept on their work to prevent an overheat. A boiler
maker's work varies from testing staybolts to flanging flue sheets. He must lay his
work out and get the necessary tools together to perform that special job, so that
the minutes of hard physical labor are comparatively few, and these have been mate-
rially reduced in the last few years by the introduction of pneumatic tools, which take
the place of the sledge, the cold chisel, and the strong arm. Flanging flue sheets is
hard work, but the work is not continuous, as gauges must be applied and measure-
ments taken at frequent intervals. Electrician's work consists m inspecting wiring,
motors, etc., replacmg blown-out fuses, winding armatures, and light work of a similar
nature. Tiimers place jackets on locomotives, roofs on cars, and make buckets,
lamps, etc., the inaterial handled all being light. Coach cleaners simply scrub out
coaches, wash windows, and such light cleaning. Car repairiers make needed repairs
on cars and carpenters and painters perform tne usual functions of their respective
vocations. All of these classes work 10 hours a day, and from the vety nature of
their occupations could not be considered as overworked in working 10 hours per day.
"Considering the other classes of employees that work 12 hours per day, we have
car inspectors on duty for that period. The amount of work they do depends upon the
number of trains handled and is very irregular, especially in winter, during many
days of which the men are actually engaged in work less than one-half of their time
on duty, while for the entire year the men will be actually engaged in work not over
80 per cent on the average of the time they are on duty. When not engaged in work,
the inspectors are expected to be at the buildings provided for rest houses.
"The men who are sent out on the road daily to repair defective cars set out of trains
will not exceed 12 hours on duty, and as a great part of their time is spent traveling in
passenger trains to and from their work, it is probable that their actual working tmie
13 less Qian 50 per cent of the time on duty.
UNITED STATES STEEL COEPOEATION. 3385
"The wrecking crews are employed on the shop tracks 10 hours per day in repair
work when not on duty with the wreck train. When on wrecking duty, the wreck
crew is on continuous duty from the time of reaching the wreck until the track is
clear, if iiot more than 5 or 6 hours are required for the work. If more, the men are
allowed time for their meals and such rest periods as the wreck master considers desir-
able under the special circumstances in each case.
"Three or four times a year on the average the wreck crew is engaged on a wreck
where the actual working time exceeds the idle time, the latter including the time
required to travel to and from the wreck and the rest periods; at all other wrecks the
actual working time is less than the resting time.
"Each wreck train is equipped wilii a sleeping and dining car equipped with a
kitchen, table, and bunks, m. which the men are taken care of when not actually
engaged in work.
"Elaine coalers are on duty 12 hours and in that time average about three hours' rest,
their duty being to coal locomotives. Fire cleaners dump the ash pans and grates
of locomotives arriving at the terminal and average about 2J hours rest in 12 hours.
Engine watchmen watch engines and keep water in boilers and the fire in proper
shape, jiipea drained in winter, etc. They are on duty 12 hours and practically have
no period of rest, keeping moving from one engine to another. Hostiers, who move
engines to and from the roundhouse, average about 2 hours' rest in 12 hours. The crew
caller averages 4 hours' rest in 12 hours.
"All of the above 12-hour men are governed in their period of rest by the rapidity
with which engines arrive at and depart irom a terminal, it varying from day to day as
conditions change, though the above figures are a fair average.
"On Sundays there is no work done at all, there being only a sufficient number of men
on duty to watch engines under steam and to guard against a possible fire at the vari-
ous terminals.
"In the chief engineer's department the office hours are from 8 o'clock a. m. until
5 o'clock p. m., with one hour allowed, 12 o'clock to 1 o'clock at noon, for dinner.
"Section foremen and men are all at their tool houses ready to start to work at 7
o'clock each morning, except Sunday. They work until 12 o'clock, noon, take one
hour for dinner, resume work at 1 o'clock p. m., and work until 5.30 or 5.45 p. m.,
leaving work in time to get back to their tool houses, through for the day, at 6 o clock
p. m., working 10 hours per day. One man on each section is detailed to walk over
the section each Sunday, which takes 5 hours or less, to see if everything is all right,
but they take turns at tiiis, so no one man will work more than one Sunday In each
month.
"Extra gang foremen and men are at work each morning except Sunday at 7 o'clock
and work until 12 o'clock, noon. They take 30 minutes for dinner, resume work at
12.30 p. m., and work until 5.30 p. m. in order to allow their work trains to get in and
tied up by 6 o'clock p. m. Extra gang men live in boarding cars and temporary
buildings, both of which are fitted up with bunks and are furnished by the company
free of charge to the men. During the busy season when we are running from 25 to
30 trains each way a day, the track men are not able to do any work while trains are
passing, and figuring on an average delay to their work of three minutes to a train,
there is about one hour and a half out of the 10 they are out that they can not work.
"We have at present six carpenter gangs, one painting gang, two concrete gangs,
one interlocking gang, and one water-supply gang. Two of the carpenter'gangs work
out from their headquarters, §oing to and from their work on the morning and evening
trains, and one gang works in tbe carpentershop and around the shops at Green-
ville. The otb|pr three carpenter gangs work all along the Une and live in boarding
cars, which are provided with cots and mattresses, stoves, dishes, and cooking utensils
furnished free by the company. The men buy their own provisions. They work from
7 o'clock a. m. until 5.30 or 6 o'clock p. m., taking 30 minutes or 1 hour for dinner at
noon, and work 10 hours per day. They do not work on Sundays.
"The two concrete gangs work all along the line and Uve in boarding cars, fitted with
bunks, which are furnished free by the company.
"The masons, water-supply repairmen, and interlocking gangs work out of headquar-
ters, going to and from their work on the morning and evening trains, and work 10
hours per day. They do no Sunday work.
"We have 12 water stations, where the pumpers work turns of 12 hours each; thatis,
there is a day man and a night man at all of but three of these stations, which, on account
of their location, it is not necessary to keep a night man on, w'hose duty it is to see that
there is a good supply of water at all times, but as the pumps are run on an average of
but 7 hours during the 12-hour turn, based on the average for the month of August,
which was one of our heaviest months, the pumpers have four or five hours each day
for rest, and as all the pumps are run by gasoline engines except two, which are run by
3386 UNITED STATES STEEL COEPOEATION.
steam, their average hours of rest, on account of their being able to rest part of the timi
while the pump is running, is more than their hours of active labor. At some of thi
stations it isnecessary for the pumpers to work a few hours each Sunday.
"With the exeption of the tract walkers and pumpers, there is no Sunday woik
except in emergencies."
It would be impossible to reply to Mr. Close's inquiry as to "what extent the honn
of labor have been reduced." AH that we can say is that the order went into effeci
May 1, 1910; that our tonnage for the year 1910 was 815,000 tons more than for the yeai
previous, and that in. liie last eight months of the year we worked only six days pei
week instfead of seven, except in cases of absolute necessity, and that during 1911 m
have maintained the Sunday observance and our tonnage is far and away ahead ol
what it was during 1910; but to analyze and determine to what extent houryof laboi
liave been reduced, can only be guessed at.
The comparison would have to be made between 1909 and 1911, and elements entei
into the question such as increased equipment, locomotives, and cars, additional
track facihties, and a hundred items.
There is no way to figure it, in fact.
Respectfully, E. H. Utuey, General Manager.
DuLUTH & Iron Range Railroad Co.,
Oppice op the President,
Duluth, Minn., September 5, 1911.
Mr. J. A. Farrbll,
President United States Steel Corporation,
Empire Building, New Yorh, N. Y.
Dear Sir: I am in receipt of yours of September 1 regarding statement showing
average hours of rest and active labor for the different classes of employees of the
Duluth & Iron Range RaUroad Co. I judge, from the reading of your letter, that you
refer to the actual hours of continuous labor that an employee performs while he it
on duty as compared with the actual hours, or parts of hours, that he is able to rest
while he is on duty. If that is true, that condition of labor hardly belongs to any part
of our railroad work. I know that in the mills some of the men work continuously
for a certain length of time and then rest for a short time before taking up their work
again. We have nothing of that kind upon which we could give you any definite
information in our work.
I am sending jrou herewith a statement that shows the hours on duty and the hours
off duty of men in different departments of our railroad work, and if it is of no value
to you in this particular case it may be of some value in the future. Of course, oui
yardmen and switchmen may work actively for a few hours and then wait a short time
for switching work to accumulate, but it is impossible to give any figures in their case
that would be at all accurate or valuable. This condition also applies to our tug crews.
We have one tug that attends to all of the towing of barges and boats into and out of
Two Harbors, and when there is a rush of boats they are quite busy and at other times
theyarelyingattheirdockawaitingarrivalofboats. Wehaveafire tug, that is manned
by two crews, continuously on duty 12 hours each. They do no work except to be on
hand in case of fixe, with the exception of occasional small jobs of towing right in the
vicinity of their dock, which would not interfere with their prompt response to any
fire alarms. All of the rest of our men shown on the list are practically continuously
employed during the time they are on duty.
I will be very glad if you will advise me promptly if this informsttion is what you
want, or in what respect I can meet your views more fuUy than I have.
Vei-y truly, yours,
F. E. House, President.
UNITED STATES STEEL COEPOEATION. 'd'd^il
Hours of labor and of rest, the Duluth & Iron Range Railroad Co.
Class of labor.
Hours of
labor.
Hours of
rest.
116
10
10
s
10
10
9
10
10
10
10
74
12
8
Yardmen and swltchinen
U
Roundhouse men ...
14
IS
Station agents .'. i
14
■ 14
15
Trackmen . j
14
14
14
14
m
Tug crews
12
1 Maximum.
Note.— Eight hours' rest required by law after 16 hours' continual service. Hours of labor vary accord-
ing to miles run and in no case can exceed 16 hours continuously on duty.
Pittsburgh Steamship Co., Office of the President,
Cleveland, Ohio, September 5, 1911.
Dear Sir: I am. in receipt of your letter of the 1st instant, with reference to the
question of overworked labor, skilled and otherwise. On the Great Lakes, while our
ships are navigating, the men have to stand 6-hour watches. We do not ask the men
to do any work on Sunday except look after the navigation of the ship. During the
season of navigation our boats are kept moving, and the men are pretty constantly
employed. This has been taken into consideration in the regulation of wages. We
gay higher wages than are paid anywhere else in the world to sailors, and I nave not
eard of any dissatisfaction among our men. Some years ago there was some dis-
satisfaction because the men were kept busy cleaning ship on Sundays, but, so far as
our fleet is concerned, this has been discontinued for some years.
Yours, truly,
H. OouLBY, President.
J. A. Farbbll, Esq.,
President United States Steel Corporation,
Empire Building, New York City.
Elgin, Jolibt & Eastern Railway Co.,
Office of the President,
Chicago, September 5, 1911.
Mr. J. A. Fareell, .
President United States Steel Corporation, New Yorh City.
Dear Sir: Replying to your favor of the 1st instant, in regard to overworked labor,
skilled and otherwise, employed in steel worksand allied interests;
The railroads have rather a severe penalty for a violation of the hours of labor act.
Trainmen must not exceed 16 houra of continuous labor, and before resuming work
must have a period of 8 hours of rest. We have no 8-hour shifts for trainmen. Prac-
tically all other class of labor is working 8 and 10 hours for a day's work.
Yours, truly,
A. F. Banks, President.
Ddluth, Missabe & Northern Railway Co.,
Duluth, Minn., September 14, ISll-
My Dear Sir: Replying to your favor of the 5th instant, relative to the average
hours of rest and labor for the different classes of employees of the Duluth, Missabe &
Northern Railway Co., I beg to hand you herewith statement showing the actuai
hours worked regularly and the regular number of hours of rest which is about the only
definite information we can give you on the subject as our men work practically con-
3388
UNITED STATES STEEL COEPOEATION.
tiauously during the regular hours of labor and there is very little cessation of labor
except in a degree. Our fire tug ife manned by two crews than work 12 hours each.
Each of these crews occasionally performs work in shifting vessels froin one dock to
another but there is very little hard service with the exception of keeping the vessel
cleaned, except when they are called upon for actual work in extinguishing fireo.
Our employees in the water-supply department work irregularly, sometimes a few
hours and sometimes a full quota of 10 hours, depending entirely upon the require-
ments for water.
I trust this will give you the information you desire, but if there is anything addi-
tional required I will be pleased to furnish it promptly upon your request.
Very truly, yours,
W. A. McGoNAGLE, President.
Mr. J. A. Farrell,
President United States Steel Corporation,
71 Broadway, Empire Building, New York, N. Y.
Hours of labor and rest, Duluth, Missabe & Northern Railway Co.
Class of labor.
Hours of
Hours of
labor.
rest.
116
8
10
14
10
14
8
16
10
14
10
14
9
16
10
14
10
14
10
14
10
14
8
16
12
12
Trainmen and engineinen. .
Yardmen and switchmen . .
Roundhouse men
Train dispatchers
Station agents
Pumpers (service irregular)
Shopmen
Trackmen
Bridgemen
Ore-dock men
Coal-dook men
Office force
Tug crews
1 Maximum.
Trainmen and enginemen: Eight hours rest required by law after 16 hours continual service,
labor vary according to miles run and In no case to exceed 16 hours continuously on duty.
Hours of
Ko. 51
UNITED STATES STEEL CORPORATION
HEARINGS
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPRESENTATIVES
THURSDAY, FEBRUARY 15, 1912
::^».
WASHINGTON
GOVERNMENT PRINTING OITIOE
1912
UNITED STATES STEEL COEPORATION.
Committee on Investigation or the
United States Steel Corporation,
House or Representatives,
Washington, D. C, Thursday, February 15, 1912.
The committee this day met, Hon. Augustus O. Stanley (chair-
man) presiding.
STATEMENT OF PEECIVAL ROBERTS, JR.— (Resumed).
Mr. Young. Mr. Roberts was just going into a' new matter at the
time we adjourned, I believe, Mr. Chairman.
The Chairman. Yes. Proceed in your own way, Mr. Roberts.
Mr. Roberts. Mr. Chairman, I was just about to start in on the
subject of " Old age af forty."
In reference to that matter I have here principally a number of
photographs, and some statistics which bear on the subject.
For instance I have here an album which contains the photographs
of some 2,200 men working in the Pencoyd Iron Works. It seems
that these ph»tographs were taken, during the year 1910 by wish of
the men, who employed a photographer. The 12 hours turn did not
seem to interfere with their vanity at all, because they have insisted
upon being photographed here.
Mr. Young. Did the company have anything to do with it?
Mr. Roberts. Nothing whatever. This was done by the workmen
themselves in the various departments, and represents 2,200 men out
of a total then working of 2,300.
The Chairman. Were these blast-furnace men ?
Mr. Roberts. This is an open-hearth steel works, a rolling mill
making structural materials and structural fabricating shop. There
are no blast furnaces in connection with these works, but I sub-
mitted this first as giving practically a complete photograph of the
total number of men employed there. In other words, they were not
selected groups. This represents practically the total workmen of
the plant.
I have also here a number of statistical statements showing the
number of years employed, the number of men, and their average.
The Chairman. I would like to hear that. Will you read that ?
Mr. Roberts. The number of years employed is taken in 5-year
turns; first under 5 years; then 5 to 10 years; then 11 to 15 years;
then 16 to 20 years; 21 to 25 years; 26 to 30 years; 31 to 35 years;
36 to 40 years ; 41 to 45 years ; and 46 to 50 years.
Mr. Young. Those are the years of employment?
Mr. Roberts. Those are the years of employment at the Pencoyd
Iron Yorks. The total number employed is about 2,300.
3389
3390 UNITED STATES STEEL UOKJr-UKATlUJN .
Pcncoyd employees — Years of service as of Feh. 10, 1912.
Number of years employed.
Number Average
of men. age.
1
Number of yenxs employed.
Number
of men.
Average
age.
Under 5
876
539
291
231
110
28.7
32.2
39.3
44.2
49.1
28
18
3
53.4
56
5 to 10
31 to 36
11 to 15
16 to 20
41 to 45
21to25
1
Percentage of English-speaking employees on pav roll, 89.9.
Percentage of non-English-speaking employees on pay roll, 10.1.
Mr. Young. Where is that ?
Mr. RoBEKTS. At the Pencpyd Iron Works, one of the plants of the
American Bridge Co., consisting of an open-hearth steel works, struc-
tural rolling mills, and structural fabricating shops.
Mr. YouxG. "V^Tiat does that term"" English speaking" mean?
Mr. Egberts. It means that they understand and speak English.
Mr. Young. It has no relation to their race ?
Mr. Egberts No, sir.
The Chairman. Do you keep statistics of that kind of all your
works ?
Mr. Egberts. I have here a number of groups of workmen repre-
senting the different departments of the Carnegie Steel Co. The
photographs number 761 men in the various departments, commenc-
ing with the blast furnaces. These photographs will show the age,
years of service, and averages. For instance, I have here photo-
graphs of 71 men at the Lucy blast furnaces. At those blast fur-
naces there are a total of 294 employees; 89, or 30.2 per cent, have
been employed over 30 years, while 35, or 11.9 per cent, have been
employed 30 years or more. That represents that group That is a
blast-furnace group [exhibiting photograph].
This is another group of blast-furnace men [referring to photo-
graph]. The average is 58.1 years, and the years of service are 32.3
average. In other words, we have reached 18 years over the 40-year
limit in that group.
Here is a group of the Duquesne blast furnaces.
Mr. Sterling. Does that purport to include all the men in that
particular furnace?
Mr. Roberts. No; that is simply a representative group. The
album to which I referred a moment ago includes all the employees,
over 2,200 out of a total of 2,300 ; but these are simply average groups
as they come to me, and from looking at them I should say, from my
own knowledge, that they are average groups, but not complete at
any one department. They show 761 men. ,
This is another, the Duquesne blast furnaces [refering to photo-
graph]. Here is one of 52 men of the Carrie blast furnaces. The
average age is 46.7 years, and the years of service are an average of
We come next to the Duquesne open-hearth furnace.
Now we reach the Steel works. This is the open-hearth depart-
ment. This is an average age of 51 years, and years of service 24.4.
This is the Homestead Steel Works.
Here is another one in the open-hearth department. The average
age is 53 years, and the average years of service is 31 years.
XJJSIITJBU STATJfiS UTEHIL, COBPOEATION. 3391
Here is another one in the open-hearth department, average age
48 years, average years of service 24 years.
Now we come to the finishing mills, the rollitig-mill department at
Homestead. We have an average age here of 49 years, and average
years of service 25 years.
Another one of the finishing mills at Homestead, 49 years average
age and 25 years of service.
Mr. Sterling. I believ6 you should designate what you are look-
ing at there so that it will appear in the record as to just what you
refer to.
Mr. Egberts. Possibly I should, for these photographs will not go
into the record.
Mr. Sterling. No.
Mr. Roberts. I am exhibiting certain typical groups of employees
of the Carnegie Steel Co., commencing with the blast furnaces and
extending through the open-hearth department, their rolling-mill
department, their forge department, their armor-plate department,
■and their mechanical department.
The Homestead Steel Works, plate department, number of men 61,
average age of above men 47.50 years, average years of service
24 31/61 years.
Homestead Steel Works, beam mills, and yards; that is a group of
the yard men [exhibiting photograph] .
Mr. Bartlett. Observing these men on this photograph that I
have in my hand, No. 10, 1 see No. 2 is 44 years of age and has been
in the service 28 years. That means that he commenced at 16 ?
Mr. EoBEETS. Very likely, yes. These men have all gone into the
works as young men, in the lower positions, and worked their way up.
Mr. Baetlett. And there is another one here, No. 12, 45 years of
age, who went in at 15 aiid has been in the service 30 years'.
Mr. Roberts. That is undoubtedly correct, Judge Bartlett.
Mr. Bartlett. It appears to me, from just glancing at it, that he
is not as happy and well preserved as the others. I do not know.
What sort of work did a boy 15 years old do?
Mr. Roberts. Some of these men are undoubtedly like milk cpws.
You do not pick the beefy ones to be the strongest by any means.
Mr. Bartlett. No.
Here is one. No. 33, 41 years old, who has been in the service 24
years. That means that he must have started at 17.
Mr. Roberts. In those early days. Judge Bartlett, there was no
such strict rule as to 16 years of age as there has been later. Some
of those boys entered the works probably below the age of 16.
Mr. Bartlett. What would a boy 15 years old do ?
"Mr. Roberts. He possibly attended to keeping buckets filled with
water for the men to drink, or pulling open a door, to the furnace, or
something like that. It was not excessive labor.
Mr. Danforth. How were these men selected who are represented
in these groups in the photographs ?
Mr. Roberts. They report that they are taken as typical, average
groups.
Mr. Danforth. For instance, here is the Homestead Steel Works,
plate department; 20-year service men.
Mr. Roberts. They have taken a group of men in service 20 years.
3392 tTNITED STATES STBEn-COBFOBSXHTa: — —
Mr. Danfoeth. Do you suppose that is the entire group of the
men who have served that length of time ?
Mr. Egberts. That is the entire group of the 20-year service men
in that one particular department, yes.
I have here the Homestead Steel Works, beam mills and yards,
average ages of the above men 55 years, average years of service 32
years.
I have here the Homestead Steel Works 38 and 39 inch mills;
average age of above men, 54 years ; average years of service of the
above men, 30 years.
Homestead Steel Works, plate department: Average age of above
men, 49.7 years ; average years of service of the above men 31§ years.
Here is another group of rolling-mill men, Duquesne Works : Aver-
age age, 48.4 ; average years of service, 22.9.
Homestead Steel Works, Howard axle department, 46 men : Aver-
age age of above men, 50 years; average years of service of above
men, 25 years.
Homestead Steel Works, Howard axle department: Average age
of above men, 55 years; average years of service, 32 years.
Armor plate department : Average age, 51.3 years ; years of service,
25.2 years.
Homestead Steel Works, mechanical department: Average age of
above men, 50 years ; average years of service, 25 years.
Mr. Eeed. There are 89 men in that department over 20 years in
the service.
Mr. EoBEKTS. Homestead Steel Works, beam fitting and finishing
department: Average age of above men, 47 years; average years of
service of above men, 22 years.
Homestead Steel Works, mechanical department: Average age of
above mefi, 58 years ; average years of service of above men, 32 years.
Homestead Steel Works, structural department: Average age, 48
years; average years of service, 25 years. This illustration is some-
what outside of the works, but the legend on it reads :
This man was born September 13, 1847, and started to work at the painter
mills September, 1858; was employed continuously at this mill as pull-up, lay-
off, poke-in, hook catcher, heater's helper, heater, and bookman until Janu-
ary 1, 1911, at which time he retired on pension.
This man commenced working at 11 years of age; worked continuously 53
years ; and at the present time Is 64 years of age. The picture represents a
family group of the man, his wife, and youngest child, a boy of 13 years.
Mr. Sterling. Do you know what per cent of these men own their
home?
Mr. Egberts. I have no record of that.
Mr. Sterling. Would you say quite a percentage of "them do ?
Mr. Egberts, I should say it was a quite large percentage. I think
there is some data on that in some of these other departments.
The Chairman. -Have you any groups here of roughers and
catchers?
Mr. Egberts. You will find those in what is termed the rolling-mill
department.
The Chairman. I mean in the tin-plate department.
Mr. Egberts. Those are all the Carnegie mills in Pittsburgh.
None of these figures cover the tin-plate plants. They cover the
Homestead and Duquesne plants only.
UiVilJ!,L> JlAJLiLJ AULiLLI COBFORATION. 3393
That covers, I believe, the question of " Old age at forty."
Mr. Bartueti'. Is there any way of determining whether these are
native-bom Americans, or whether they are foreigners?
' Mr. Egberts. That could be ascertained by means of the key nmn-
bers which you will notice. I have no doubt that information could
be filed if you would like to have it. You have noticed that there
are numbers on the photographs which evidently will enable them
to trace the name of me workman.
Mr. Reed. Most of the men who have been in the service more than
20 years are native Americans, English, or Irish.
Mr. Roberts. Or naturalized citizens.
Mr. Reed. Very few southern Europeans have been in the service
that length of time.
Mr. Bartlett. I take it for granted that this No. 12 is an Ameri-
can.
The Chairman. Have you any figures to show what percentage
of the employees of the United States Steel Corporation, the 200,000
men employed, have been in the steel business for more than 20
years ?
Mr. Roberts. No: I have not, as a whole.
The Chairman. Have you any figures to show, outside of the
transportation — because you a^ipear to have no figures as to that —
what per cent of the entire number of employees of the United
States Steel Corporation are American born ?
Mr. Roberts. I have not ; no.
There are five points more Which I want to touch upon :
First, sanitation and welfare.
Second, voluntary relief plan.
Mr. Reed. Accident relief, you mean ?
Mr. Roberts. Voluntarj' accident relief plan ; yes.
Third, accident prevention.
Fourth, pension.
Fifth, profit sharing.
I shall take but a very few moments to cover these remaining,
points.
I would say in reference to those five subjects, that the corporation
has been accused of putting those things in effect to hold their men in
their employ.
In reply to that I would say that the purpose of that policy is for
the betterment of the men ; and that it naturally follows that where
a man can better his condition, he is likely to remain.
If, on the other hand, we would follow the converse of that propo-
sition, whereby the longer a man was in ;pur employ, the more he
desired to I'eaye, I think you would at once agree with me that we
would either be imbecilic or fit for the lunatic asylum. A man will
continue where it is for his interest to do so.
I have here a brief statement as to what has teen done in regard
to sanitation and 'welfare which, if I may, I will read. It is a short
statement [reading] :
Sanitation and welfare worli : All companies have been actively engaged ior
a number of years in bettering tbe workman's condition. Special men bave
been employed to make a study of tbe conditions and to make suggestions for
improvements. Recently a committee was appointed by Judge Gary, consisting
of five members, representing different companies, known as tbe sanitation com-
mittee of the TJrtited States Steel Corporation.
3394 UNITED STATES STEEL, TSDKPDKSTIDN .
The functions of the committee are about the same as the safety committee
acting as a clearing house, receiving and disseminating among all the sub-
sidiary companies ideas and suggestions for improving and bettering the work-
man's conditions. They also conduct inspections and employ special engineers
where necessary to make these inspections in order* to get the best possible
ideas on this work. Dr. William Darrach, of New York ; Dr. Thomas Darling-
ton, former health commissioner of New York, and other prominent people have
been employed and have made special Investigations, extending over a period
of from three weeks to as many months and covering all of the corporation's
plants and mines. These Investigations covered hospitals, care of the injured,
sanitary conditions, etc. Emergency hospitals have been installed at all plants
in charge of competent surgeons and nurses. One of the most modem hospitals
in the United States has been built by the Illinois Steel Co. at a cost of about
$250,000.
Sanitary engineers are now permanently engaged In some of the companies
who spend their entire time studying and investigating conditions around the
plants and mining camps. Drinking water and the disposal of fecal matter in
mining camps where there are no sewers or water systems are being given
special attention. Drinking water is analyzed, and If found to be contaminated
no one is allowed to use It, and a new source of supply Is provided. In our
mining camps there are regular and periodical collections of feces, and It Is
disposed of either by incinerating or placing in septic tanks. Garbage is also
collected and disposed of at regular periods.
Mr. Baetlett. That is at all your plants?
Mr. Egberts. This is where the housing is under the control of the
corporation.
Mr. Babtlett. It is not under the control of the corporation at
Homestead ?
Mr. Egberts. No, sir ; none of it [continuing reading] :
Special attention is given to commissaries. The meat markets are entirely
screened off from the balance of the store ; marble slabs are used for counters.
Fruit and vegetables are kept screened so flies can not come in contact with
them. Regular inspections are made by a sanitary engineer to see that the
stores are kept clean and that everything is done In a sanitary manner.
All plants are being equipped with good drinking-water systems; sanitary
drinking fountains are provided so as to avoid the spreading of disease from
one to another.
During the period of 18 months ending June 30, 1911, there was expended
by the companies $836,632.77 for the improving of workmen's conditions. The
following is a partial list of the Items it covered :
Emergency hospitals (does not include Gary), retiring rooms, sanitary
toilets, drinking-water systems, sanitary drinking fountains, ventilating and
eooling systems, athletics, swimming pools, ball grounds, etc., Improving dwell-
ings, club houses, shower baths, providing plots for vegetable gardens, dona-
tions to hospitals and charitable institutions.
Other Items not taken Into account In the above are : Selling coal to em-
ployees at cost, renting houses to employees for building homes at lower rates
than the legal interest, loaning money to reputable employees to relieve distress
and charging no Interest.
Mr. Gardner. Are those things free to the men — the swimming
pool, hospitals, and things of that kind ?
Mr. Egberts. I so understand; yes, sir.
Mr. Gardner. They do not have to pay any dues ?
Mr. Egberts. No ; I imderstand these are all entirely free.
Mr. Bartleti". Just as a matter of record, is there anybody here
who can state positively on that?
Mr. Egberts. Mr. Close, who is the chairman of the safety com-
mittee, advises me they are absolutely free.
Mr. Young. That is not true of all the hospitals, is it ?
Mr. Egberts. That they are free to the men ?
Mr. Young. Yes.
UNITED STATES STEEL OOEPOEATION. 3395
Mr. Close. Yes ; free treatment is provided in cases of injuries.
Mr. Young. Oh, yes; but is it not true that in some of these plants
at least the men contribute something to a fund for medical attend-
ance and hospital service?
Mr. Egberts. I do not understand that the men contribute any-
thing.
Mr. Close. Not in any of the plants. They do it in the Northwest.
Mr. Roberts. In the mining companies.
Mr. Close says that in the iron mining region they contribute to
the fund ; but in none of the industrial plants.
Mr. Gardner. Is that free treatment provided in case of disease,
or in case of accident, or both ?
Mr. Close. Both ; in the Northwest.
Mr. Roberts. I understand that it is free in both.
Mr. BAetlEtt. I understand, that for the use of these gymnasiums
and other things that you have mentioned, the men are not required
to pay any tax, by way of dues or anything, in order to belong ?
Mr. Roberts. They are absolutely free, as I understand.
Mr. Bartlett. And accessible to all who frequent them and comply
with the regulations?
Mr. Roberts. To all who are residents in these localities.
Mr. Young. Is not this the situation at the iron mines : That the
men pay in a certain amount — I think it is 50 cents a month, or some-
thing like that — into a fund ; that this entitles them to medical attend-
ance for themselves and their families, all single men to the use of
the hospitals, and all married men to the use of the hospital in case
of accident or of such severe disease that they can not be properly
taken care of at home ; and that the rest of that expense is paid by
the company. Is not that the situation at the iron mines ?
Mr. Danforth. You mean at the iron ore mines ?
Mr. Young. Yes.
Mr. Close says that is correct, so far as the Northwest mining and
transportation employees are concerned; that is, the Lake Superior
ore region and the railroads of the Lake Superior region; but that
it applies nowhere else.
Mr.' Bartlett. In addition to those things, do you know whether
or not they have other things, like social clubs and things of that sort,
as to which they themselves determine the membership and pay the
dues ?
Mr. Roberts. I think a great many of these associations are largely
carried on by the Young Men's Christian Association, and contribu-
tions are made. For instance, there is a large new building at Gary,
which has recently been built by Judge Gary, who presented that to
the town.
Mr. Young. Right there, is it not true that in the iron mines, also,
in answer to Judge Bartlett's suggestion, they have, almost invari-
ably, what is called the Miners' Club, to which most of the miners
belong, and to which they pay dues, and from which they receive
sick benefits and death benefits ?
Mr. Roberts. I think that is true. I thinlc there are some details
in regard to those matters in the file which I presented here yester-
day. There is a statement regarding the conditions in the ore region
by the president of the Oliver Mining Co., who gives a number of
3396 ' UNITED STATES STEEL, COKPOEATION.
details in regard to those matters. I did not read the letter yesterday,
because I did not -want to take up too much of the time of the com-
mittee.
Mr. Young. Do not the mining companies contribute to these club
funds, and are they not distributed to the men by a committee ap-
pointed by the men themselves, who determine whether they are
entitled to the benefits or not ?
Mr. Roberts. As to the details of that I am not informed, and I
can not give you accurate information on that point.
Mr. Young. Is that right, Mr. Close ?
Mr. Close. Yes, sir.
Mr. Roberts. I am informed that that is correct, Mr. Young.
Mr. Sterling. How long has this welfare plan been in operation,
Mr. Roberts?
Mr. Roberts. It was agitated and discussed soon after the forma-
tion of the Steel Corporation. It has been a gradual development.
I can not fix any definite date. It commenced almost with some of
the first meetings of the executive committee, as far back as 1901.
For instance, I very well recall, while I was on that committee,
offering a resolution in regard to profit sharing.
It took time to develop these matters, however. They are not
completed, by any means. All these five subjects that I have men-
tioned are still in tentative shape. They are experimental. We
do not know. They are not perfect by any means. There is room for
improvement in all of them, and from time to time we are trying to
adapt them to the conditions, in the best way we can.
We have before us at present the question, in the profit-sharing
plan, of enabling men to take a longer time to pay for their stock
than is now permitted— that is, in the case of men whose average
yearly earnings are under $800 a year, that they shall have a greater
number of years in which to pay for their stock than those whose
yearly earnings are over $800.
In other words, we are feeling our way in all these things. It is
a good deal of an exploration. We are getting into grounds that
have not been trodden before. We do not Tknow where we are going.
Mr. Sterling. It was said here, before this committee, that the
Steel Corporation had adopted this plan for the purpose of holding
the men. It has been charged that it was the purpose of the corpora-
tion to create a sort of a condition of slavery among the men.
Do you know how the men themselves feel about it? Do you know
of any complaints on their part, or any murmurs which you hear of,
disapproving of the plan in any way ?
Mr. Roberts. I have never heard the slightest intimation of that
kind. It is entirely voluntary. All of these plans are entirely volun-
tary. They are not compelled to enter into them. Their self-
interest, however, dictates to them that they should do so. Conse-
quently, our one thought in the matter is better conditions; and, in
bettering conditions, naturally it follows that a man wants to remain
where his conditions are better than they would be elsewhere ; but, as
for its being for the purpose of holding our men in anything like
duress, there is no such thing at all.
Mr. Sterling. I suppose the steel company, assuming that it is
doing this work in good faith — which, personally, I have no doubt
ux^ij.jiij oxa.a.iii3 isJ-JLJiij IjOKPOKATION. 3397
about myself — if they felt that it was creating dissatisfaction among
the men, would feel that the plan was a failure ?
Mr. Egberts. Why should they spend money to perfect these
plans — ^millions of dollars every year — if it were creating discord
among the workmen?
Mr. Sterling. I presume the steel company expects to get returns
from it in the fact that the men are better satisfied, in better con-
dition, and that if it did not accomplish that end they would consider
that their plan had not succeeded. Is not that true?
_ Mr. Egberts. There is no worse policy for any industrial corpora-
tion than a discontented employee.
It is our best policy to have our employees contented; and if, in
E reducing these plans, we produce more contentment, we are better
y it ; not only the men better by it ; the company betters by it.
Mr. Bartlett. It is good business policy ?
Mr. Egberts. It is good business policy.
Mr. Bartlett. It is good business policy to have your men as well
housed and as well cared for as possible in hygienic houses, and to
provide them with these other surroundings . of the sort you have
mentioned, to make them comfortable and contented, than it is
simply to work them as a human machine and get all you can out
of them?
Mr. Egberts. Absolutely. There is nothing more important in any
industrial undertaking than the loyalty of all that are concerned in
it, both ofBcers and employees; and, as I said a few moments ago,
nothing will produce that more than contentment with one's con-
dition.
Mr. Bartlett. And in order to make them contented, you must
make them as comfortable as possible?
Mr. Egberts. I agree with you ; yes, sir.
Mr. Bartlett. Both in reference to their necessary natural wants
and their surroundings pertaining to their social life and the leisure
moments of the men?
Mr. Egberts. Both within the works and without, to as great an
extent as you can go.
Mr. Bartlett. Will it interrupt you for me to ask another question
before you proceed?
Mr. Egberts. I shall be happy to answer any questions. Judge
Bartlett.
" Mr. Bartlett. What are the conditions with reference to churches
at these places?
Mr. Egberts. I have some statistics in that respect that I shall
reach in a few moments. Judge.
Mr. Babtlett. All right.
Mr. Egberts. I continue to read from this statement concerning
" Sanitation and welfare work " :
Children's playgrounds are contemplated and being installed by tbe subsidiary
companies in all localities where we have plants. These are equipped with
modern devices for play and exercise, the company paying for an attendant
to look after the children.
District nurses have been employed by some of the companies, whose duties
are to go from home to home, relieving distress and teaching the women how
to take care of the sick, care of babies, and in fact everything that will tend
to better their home conditions.
3398 UNITED STATES STEEL COBPOEATION.
During the depression of business in the winter of 1907-8 thousands of dol-
lars were expended for the workman and his family to relieve distress^ • No
one was allowed to suffer the want of the necessities of life. Coal, groceries,
clothing, etc., were furnished to those who were in need, without cost. Com-
mittees were appointed and special investigations were made in order to take
care of the modest ones, who would not apply for aid. It was seen to, and
is to-day, that no employee or his family suffer the loss of the necessities
of life.
That applies to sanitation and welfare.
The next subject I will touch upon is the voluntary relief plan
[reading] :
This plan of relief went into operation May 1, 1910, and is a purely voluntary
provision made by the corporation for the benefit of employees injured and the
families of employees lillled in the service of the subsidiary companies. Tlie
entire amount of money required to carry out the plan is provided by the com-
panies, with no contributions whatever from the employees. The principal
features of the plan are as follows :
The companies provide treatment by surgeons and hospitals.
Relief Is paid regardless of liability.
No relief is paid for the first 10 days of disability.
Temporary disaUUty. — Single men: Thirty-five per cent of wages up to 52
weeks; 2 per cent added for each additional year of service over five years;
maximum, $1.50 per day.
Married men : Fifty per cent of wages up to 52 weeks ; 2 per cent added for
each individual year of service over five years; 5 per cent added for each child
under 16 years of age; maximum, $2.50 a day.
Permanent disahiUty. — Loss of a hand, 12 months' wages; arm, 18 months'
wages; foot, 9 months' wages; leg, 12 months' wages; eye, 6 months' wages.
Permanent total disaUUty. — Such an amount as shall be required to make
suitable provisions for the Injured man, but in no case less than the death
relief for such a man.
Death. — Funeral expenses not to exceed $100. Single men : No dependents-
funeral expenses up to $100. Married men : Eighteen months' wages ; 3 per cent
added for each year of service over five years ; 10 per cent added for each child
under 16 years of age ; maximum $3,000.
The plan was printed in about 16 different languages and a copy was given
to each employee, and one is given to each new employee as he goes to work.
During the year 1910 about $1,500,000 was paid to and for Injured men and
families, which is about 76 per cent of the total expenditures in casualty
matters — an increase of nearly $700,000 over the year 1906, regardless of the
fact that the serious and fatal accidents were 43.2 per cent less than in 1906.
The increased payments to injured employees in 1910 was 43 per cent. Average
death payment was $1,438.27.
Suits were brought in but thirty -seven one-hundredths of 1 per cent of the
total accidents, .and practically 95 per cent of the accidents are now settled
within the provisions of the plan.
A copy of the plan is attached hereto.
I think that speaks very well for the benefits of that arrangement.
The Chairman. Speaking of suits, does this benefit apply whether
the suit is brought or not, or has the man the option of taking the
benefit or bringing suit?
Mr. Egberts. He has the option of bringing the suit or taking the
benefit of the plan, I believe, after the accident has occurred. He
does not have to elect when he enters the employ of the company.
The Chairman. But after the accident has occurred, if he takes
the benefit of the plan, he must take it in lieu of recompense, through
the means of a suit?
Mr. Roberts. In lieu of legal proceedings; yes.
And apparently, as I say, from that statement, in 95 per cent of
the accidents which have occurred since that has been put into effect
„^,^^„^ ^^^^^^ „^^^^ v^OKPOEATION. 3399
the men have volunteered to take the plan rather than resort to legal
proceedings.
Mr. Baetlett. I think I understand it, but I veant to ask you about
this:
, You mean by this that this means that these benefits are paid at
the death of your employee by your company, of its own motion,
without any assessment upon the men, and whether the company
regards itself as legally liable for the accident or not ?
Mr. RoBEETS. That is correct, sir.
Mr. Steeling. The men do not have to contribute anything to the
relief fund?
Mr. RoBEETS. Nothing whatever.
Mr. Steeling. You do not inquire into the question of negligence
at all?
Mr. RoBEETS. No, sir. The question of negligence has nothing to
do with it.
Mr. Steeling. Has the company instituted any safeguards to pre-
vent accidents?
Mr. RoBEETS. I am coming to the question of safety next — accident
prevention.
Mr. Reed. I think Mr. Gardner had a question that he wanted to
ask in regard to this plan.
Mr. Gaednee. How long after the accident does the employee have
the option of deciding whether he will resort to his legal remedy or
accept the voluntary relief offered by the company ?
' Mr. RoBEETS. I will submit in evidence, Mr. Gardner, the entire
printed plan of this voluntary relief, which will give all those details.
Mr. Reed. That has already been printed in the record.
The Chaieman. Does that contain the resolution about which you
spoke to me, Mr. Reed ?
Mr. Reed. This has nothing to do with profit sharing, Mr. Chair-
man.
Mr. Gaednee. I think somebody said the period was 50 days. I am
not sure.
Mr. RoBEETS. I think it has appeared somewhere in the record that
the men have up to 90 days, but
Mr. Reed. You are thinking of the New Jersey workmen's compen-
sation act. That has the provision you refer to.
It is my impression that the men have any time at all up to the
period of the statute of limitations.
Mr. Gaednee. What does Mr. Close say?
Mr. Close. There is nothing in there about the length of time.
Mr. Young. I know, as a matter of practice in mining ore there is
no limitation on the time.
Mr. RoBBETS. I have never seen any limitation.
Mr. Reed. I have known them in my practice to come in years
after the accident and get their relief.
Mr. Close. Four years afterwards.
Mr. RoBEETS. You say they may come in any time after four
years ?
Mr. Close. There is no time fixed. "We have settled cases four
years after the accident.
Mr. Reed. In Pennsylvania the statute of limitations limits the
time to two years for injuries and one year in case of death.
3400 UNITED STATES STEEL CORPORATION.
Mr. Egberts. My reply to that question would be that there is no
time limit other than the statutory limit provided by the statute of
limitations.
Mr. Gardner. They may avail themselves of the legal remedy,
provided they have not taken the accident benefit?
Mr. Egberts. If they have taken the accident benefits they sign a
release.
Mr. Gardner. But they can call for that accident release at any
time up to the expiration of their legal rights ?
Mr. Egberts. Yes.
Mr. Gardner. Can they call for it after the expiration of the
statutory period?
Mr. Eeed. They can ; and they will get it. But the option to sue
is then gone, because it is barred by the statute.'
Mr. Gardner. But when they have lost their option to sue you
do not say to them, " You have forfeited your other option to re-
ceive the benefit under the plan " ?
Mr. Eeed. Not at all.
Mr. Gardner. They can have that up to the time they die if they
choose ?
Mr. Eeed. Yes. Of course, we have not any instances of a long
period elapsing before an application is made, because the plan has
only been in force a little less than two years.
Mr. Egberts. I think largely they are of a character that need the
money as they go along.
Mr. Bartlett. You would soon find out whether they would ac-
cept it or not by knowing their condition and knowing their needs
and carrying out your policy and plans. I suppose you have some
one who looks after that.
Mr. Egberts. I think they would all be attended to within a rea-
sonable time.
Mr. Gardner. As a matter of fact, in your opinion, is this an
economy for the company as well as for the men ?
Mr. Egberts. I think it is a benefit to both parties.
Mr. Gardner. That is, in saving Mr. Eeed's bills, for instance ?
Mr. Egberts. I would say that, so far as my experience and knowl-
edge of the matter goes in the old state of things, the injured man in
many cases obtained very little of what he recovered in suits brought
against his employer.
There was a class of men known as " ambulance chasers," who
took the injured man to the hospital and then solicited his case,
and took the case on a percentage basis. In other ^vords, if they
recovered nothing, they got no fee ; and if they recovered anything,
they received a very large portion of the recovery as a fee.
Mr. Bartlett. They got it all?
Mr. Gardner. It seems evident that the present arrangement is
considered by the men as better for them, because 99 per cent of
them have availed themselves of the opportunity to take the benefit
under it. I wondered if it was at the same time a saving to the com-
pany, too ?
Mr. Egberts. From the standpoint of the corporation it is an in-
creased expenditure; but from the standpoint of its relation to its
employees, it believes that it benefits by this increased expenditure.
UNITED STATES STEEL COEPORATION. 3401
Mr. Gardner. I understand that. What I am trying to get at is
whether, in your opinion, it saves the corporation dollars and cents
because they do not have to defend these accident suits?
Mr. KoBEKTS. No ; there is no saving in money to the corporation.
Mr. Gardner. It is an expense ?
Mr. Roberts. This is an increased expenditure on the part of the
corporation over and above the old methods of casualty insurance.
Mr. Gardner. Have you estimated what the increased expense is
in two years for which this plan has been in operation ?
Mr. Roberts. I have just read those statistics, sir, I think.
Mr. Gardner. But you showed what the actual expense was ; not
what the increased expense is ?
Mr. Reed. Yes, Mr. Gardner, he showed the increased expense,
too.
Mr. Roberts. The increased payments to injured employees was
43 per cent in 1910.
Mr. Reed. Over what years?
Mr. Roberts. Over what it had been under the old system, al-
though the accidents were 43 per cent less.
Mr. Gardner. As compared with the year 1908, or as compared
with an average of 10 years?
Mr. Roberts. That was as compared with the year 1906.
Mr. Gardner. And were there substantially the same number of
employees in 1906 as there were in 1910 ?
Mr. Reed. There were more in 1906.
Mr. Roberts. There were more in 1906, 1 think.
Mr. Gardner. I should say your answer would be, then, that it is
an increased expense to the corporation?
Mr. Roberts. It is an increased expense to the corporation; yes,
sir.
Mr. Young. Do you believe that, in bringing about better rela-
tions with the men, the company really gets that back ; benefits by it
in the long run?
Mr. Roberts. I believe they do. I believe it is good policy.
Mr. Bartlett. Have you read the newspaper report of the em-
ployees' compensation commission report, I think it is, which they
propose to have introduced as a bill in Congress along that line,
with reference to all corporations engaged in interstate commerce?
Mr. Roberts. I have seen such general statements of it, Judge
Bartlett, that I would hardly be prepared to express an opinion. I
think, though, that we shall have to come to something like that.
It is only a question of how to get at it. I believe in it thoroughly.
If you do not do it in one way, you do it in another. We would do
it by subscriptions to charitable organizations or otherwise.
Mr. Bartlett. I was going to speak about this report that I have
seen in the newspapers. I have not been able to see the report itself.
It provides that the employee who accepts this compensation shall
not have the right to sue, and that he must elect one or the other,
just as is the case with your plan which you have described here.
Mr. Steeling. He can not elect, Judge, under the bill that has been
prepared.
Judge Bartlett. Are you on the commission ?
3402 UNITED STATES STEEL. CORPORATION.
Mr. Sterling. No; but I introduced the original resolution, and I
have followed it pretty closely.
Under the bUl, as the commission prepared it, the men can not
elect. They are bound to take the remedy under the compensation
law, if it becomes a law.
Mr. Bartlett. So that that is to take the place of all legal pro-
ceedings in the way of compensation for injuries by employees, at
common law or under the statutes ?
The Chairman. As I understand, Mr. Eoberts, whenever an em-
ployee accepts this compensation, then, by accepting the compensa-
tion, or any part of it, he agrees not to seek any other remedy or
recompense for his injury at law ?
Mr. Egberts. I do not understand that he does so by accepting any
part of it. If he accepts this plan he releases any legal rights he
may have.
The Chairman. Then, if a man is hurt, if he loses a leg or an arm,
and he accepts so much money under this plan for these weeks of
maintenance, as soon as the first payment is made that operates as a
release to the company for any other liability than the liability pro-
vided for under the plan?
Mr. Egberts. No. I understand that the final payment would re-
lease the liability of the company, the same as would be the case with
any other contract. It would be an unperformed contract until its
completion.
Mr. Eeed. If I may interrupt for a moment: The system is that
where the payments are made periodically, the company contracts
with the man, when he accepts compensation, that he shall release
them from any legal liability, whUe it binds itself to pay these pay-
ments, according to the plan.
The Chairman. I understand that is the condition precedent to his
receiving this relief.
Mr. Eeed. Certainly.
Mr. Egberts. It is a contract, and nonperformance on the part of
either party to the contract would be fatal to the contract.
Mr. Bartlett. Mr. Eeed, ordinarily are the recoveries for injuries
very much larger than the payments provided for ?
Mr. Eeed. No, sir. I do not know whether you want me to testify
or not. I have tried all of the Steel Corporation cases in Pittsburgh
for the last five or six years, and we have not paid more than half a
dozen verdicts ; and the biggest one was $6,500.
Mr. Bartlett. What would that man have received under the
plan, probably ?
Mr. Eeed. That is very much more. It is probably twice as much
as that particular man would have received tor that injury.
Mr. Bartlett. But he would have received it all without any ex-
pense to him ?
Mr. Eeed. By the time he collected his part of the verdict, I
imagine he did not get very much more than he would have received
under the plan; and he got it several years later, after a long fight
and a great deal of uncertainty.
Mr. Sterling. I think this commission on workmen's compensation
reached the conclusion — I do not know whether they have the sta-
tistics for it or not — that there are 90 per cent of railroad accidents
OKPOEATION. 34U3
for which recovery could not be had under common-law principles
of negligence or contributory negligence.
Mr. Eeed. Judge Sterling, under -our common law, which is still
in force in Pennsylvania, the employee has not a chance of recovery
in two cases out of a hundred.
Mr. Sterling. Do you think 2 per cent would be right?
Mr. Reed. Yes. I think that would be more nearly correct.
Mr. Sterling. Mr. Roberts, you stated that the number of injuries
had decreased 43 per cent since the adoption of this relief scheme ?
Mr. Roberts. As compared with the year 1906, I think.
Mr. Sterling. What has the company done to bring about that
reduction in accidents?
Mr. Roberts. Now, I will go to the topic ■
Mr. Gardner. Before he gets on to that, I would like to ask a
question.
Is it your opinion, Mr. Roberts, that the burden for accidents — I
mean accidents which just happen — should be borne by the em-
ployer or by the community?
Mr. Roberts. That is a general question rather than one applying
to the steel industry as a whole or to the Steel Corporation.
Mr. Gardner. Unless you have given that question thought I do
not care to press you for an answer.
Mr. Roberts. I think it would possibly vary, depending upon local
conditions, to some extent. For instance, if you have an industrial
community which has been developed by an individual establishment,
it would hardly seem that accidents should be borne by the com-
munity as a whole when there may be 99 per cent of the workers in
that individual industry. On the other hand, we have large com-
munities, municipalities, and so on, where such costs are now borne
by the community in general. Our almshouses, our hospitals, and
our charitable institutions show that. But whether it should be, as
in some European countries now, that the employers in any one trade
or business should bear the injuries is another way of looking at it.
That is the way the Steel Coi-poration has looked at it. As a whole,
they have said this industry, so far as we are concerned, will bear
the burden of these accidents, and it is a part of our charge. In
other words, when you get at it, it really goes back to the public
providing for them, because it is included in the selling cost of the
materials.
Mr. Sterling. The ultimate end of all these compensatory laws
will be that the public will bear the burden ?
Mr. Roberts. That is my opinion.
Mr. Sterling. You say you count it as one of the charges of pro-
duction ?
Mr-. Roberts. Necessarily so.
Mr. Sterling. So if the railroads should insure against accidents,
as they do in European countries, they will make that as a charge in
the cost of transportation, and it wiU ultimately fall on the public?
Mr. Roberts. The consumer is the ultimate bearer of all this thin".
Mr. Sterling. Is not that apt to fall on the public in cases where
there is no question of negligence in these 90 cases out of 100?
Should it not fall on the public?
17042— Xo. 51—12 2
3404 UNITED STATES STEEL CORPOEATIOX.
Mr. KoBEETS. It does now, in one way or another. It always has.
In cases of injury we do not destroy the injured. If they are unable
to provide for themselves the public provides for them.
Mr. Gardner. An immediate instance was what I meant. It is a
great question, and different countries are going in different direc-
tions on it. But, in your opinion, if the instance was on the whole
steel industry, as it is, I think, in general, or if the instance was on the
whole community, whether by city or State or by Nation, would not
the effect be to discourage individual employers from efforts in pro-
viding safety appliances?
In other words, by making the immediate instance on the em-
ploj'er, does not that tend at all times to drive the employer to work-
mg his brain to protect his men against injury?
Mr. Egberts. It might have more effect on some than on others,
Mr. Gardner, I think. You take a large aggregation of capital,
such as the Steel Corporation is, with its large tonnage, they are
able to take precautions and make expenditures which a smaller
aggregation of capital or an individual would not be able to do.
For instance, if they set aside a cent a ton, or something like that,
the total amount makes a very large amount, which can be expended
for such purposes as this, whereas a producer with a small tonnage
is not able in his current business to operate in the same manner.
I believe that conditions among operatives would be made much
better on large-scale operations than they can on small.
Mr. Gardner. You have stated the other side of the question
exactly. That is the argument that is made by those who think a
whole industry ought to bear it. I was stating the argument which
seemed to appeal to me more directly, and that was from the point
of view that no man would get hurt for the sake of his relief; that
it tends toward the safety of employees to make the original instance
on the company in whose work a man is employed.
Mr. Egberts. Personally I should prefer each tub to stand on its own
bottom. I would rather provide for my own employees and let it stop
there, than to provide against the carelessness of some competitive
employer, who did not take particular precaution. In other words,
as a proposition to the Steel Corporation, I should prefer it would
stand on its own individual bottom, because I believe it is doing more
to prevent accidents than any of its competitors.
Mr. Bartlett. Do you know Mr. Dixon ?
Mr. Eeed. W. B. Dixon?
Mr. Egberts. Who is vice president of the Steel Corporation?
Mr. Bartlett. Yes.
Mr. Egberts. I do.
Mr. Bartlett. Did he aid in establishing or suggesting this plan?
Mr. Egberts. That I am unable to say. I do not know what part
he played in it.
Mr. Bartlett. He was on the New Jersey conamission appointed
by the governor, which reported on the plan as adopted by the New
Jersey Legislature ; was he not ?
Mr. Egberts. During these years when these plans were intro-
duced I was not connected with the corporation, and I am therefore
unable to say.
Mr. Bartlett. Do you know whether or not the railroads and
companies, in keeping their books, accounts, and things of that sort—
UNITED STATES STEEL COEPOEATION. 3405
do you know where they place the money they lay up for accidents ?
Under what subject or heading they are put?
Mr. Roberts. No; I can not speak further than the Pennsylvania
Eailroad in that matter ; and there they have in their annual report
the amounts.
Mr. Baetlett. I know, but what do they call it?
Mr. Roberts. That is termed their " accident relief," and it would
come out of operating expenses, what they contributed toward their
accident relief.
Mr. Bartlett. It would be a charge on the company, in consider-
ing what would be a reasonable rate of freight or passenger service,
would it not ?
Mr. Roberts. I think so ; and operating expenses.
Mr. Baetlett. In that way the public would pay finally, in the
case of railroads, certainly if not in the case of the Steel Corporation
or other corporations, under this plan.
Mr. Roberts. They would in this way ultimately pay, not neces-
sarily pay. It may come out of the profits of the corporation if those
13rofits were sufficiently large. But if you are running with practi-
cally no margin over costs, then the public would pay it. It is just
a question whether it comes out of profits or not. If there are no
profits, it is an additional cost ; it makes your profits that much less.
Mr. BartleTt. If the Government should assume a plan of regu-
lating these large corporations engaged in interstate business, manu-
facturing, and business corporations, of regulating their practices, in
order to have a reasonable return on their money, it would seem that
they necessarily would have to take this into consideration.
Mr. Roberts. I hope you and I, Mr. Bartlett, will never see that
day come.
Mr. Baetlett. I am glad you have said that. I certainly hope so
myself.
Mr. Young. Could you tell, offhand, how much per ton of the
products of the Steel Corporation this charge amounts to ?
Mr. Roberts. I think the amount expended was about a million
jind a half. That would be about 10 cents a ton.
Mr. Young. Do you think that anybody that bought a keg of nails
would ever know the difference; that it would make any difference
in the price at which you sold them ?
Mr. Roberts. No; it would come out of the whole profits.
Mr. Young. What do you think it would be on a ton of plates ?
Mr. Roberts. I think up to date it has made the Steel Corpora-
tion's profits that much less. I do not think it has raised their sell-
ing price one particle. In other words, the 10 cents a ton has not
been added to their selling price, and therefore the public has not
paid it. It has come out of profits.
Mr. Young. It is too small a matter to change the price.
The Chairman. I would suggest that Mr. Roberts finish his state-
ment.
Mr. Reed. Mr. Roberts was going to tell about the safety work to
prevent accidents.
Mr. Roberts. I now have come to another topic, and that is " acci-
dent prevention."
Wliile all companies were putting forth their efCorts individually to prevent
accidents, it was not taken up systematically by the corporation until 1906. In
2406 UNITED STATES
March, 1908, a committee was appointed, known as tbe safety committee of tlie
Ifnited States Steel Corporation, made up of six members — the general solicitor
of the corporation, as chairman, and five other men representing five of the
subsidiary companies. Later two additional members were added, making a
total of seven of the larger companies represented on the committee.
This committee holds meetings periodically, going' over matters pertaining to
the best methods of preventing accidents, and acts as a clearing house in obtain-
ing and disseminating Information and suggestions tending toward the preven-
tion of accidents and safeguarding employees.
This committee conducts inspections of the plants either as a body or by hav-
ing an inspector from one company inspect another company's plants. It also
studies serious accidents and makes recommendations as to how to avoid the
occurrence of similar accidents.
Following the organization of the Steel Corporation safety committee the
subsidiary companies organized committees whose functions are similar, with
reference only to that company's plants. In addition, they have foremen com-
mittees and committees made up of the workmen themselves, who make regular
inspections and suggest ways and means to prevent accidents. In addition to
these committees, each company has its safety experts, who spend their entire
time studying conditions of plants and how accidents are occurring, in an effort
to still further safeguard our plants.
In the 18 mouths ending June 30, 1911, there was expended on this work
$1,366,000, and there are still large appropriations for safety being granted.
An appropriation was granted within the month amounting to $96,000, solely
for safety and for one company.
The results of this safety campaign are that we have reduced our serious
and fatal accidents 43.2 per cent since 1906. In other words, using the per-
centage for the normal pay roll of 200,000 employees shows that each year
there now escape serious or fatal injuries over 2,300 men who would have been
injured under conditions existing five years ago.
Attached hereto is a copy of bulletins Nos. 1 and 2, issued by the United
States Steel Corporation safety committee, which explains to a fuller extent
the workings of this committee. It also contains cuts of some of the devices
approved by the committee. Hereto attached is also a copy of the survey,
issue of November 4, 1911, and on page 1145 is an article entitled " Boosting
for safety," written by John A. Fitch.
That is all I have on that subject.
Mr. Reed. I would like to add, if the committee will permit" me,
that on this visit we hope you will make to some of the mills, you
will see the effect of that policy in the protection of the men from
dangerous machinery. It would be more marked if you could
visit somebody else's mills at about the same time.
Mr. Egberts. We come next to the pension plan.
The United States Steel Corporation and Carnegie Pension Fund was estab-
lished in the year 1910 by the joint action of the United States Steel Corpora-
tion and Andrew Carnegie. Its purpose is the payment to employees of old-
age pensions from the income of the fund. For this purpose the United
States Steel Corporation provided $8,000,000, which, with the Carnegie relief
fund of $4,000,000, created by Andrew Carnegie on March 12, 1901, makes a
joint fund of $12,000,000. This fund is administered by a board of 12 trustees
through a manager appointed by the board.
Its principal features are :
(a) Compulsory retirement for men at 70 years of age and for women at 60
years of age after 20 years of service.
(b) Retirement at request of the employee or his employing officer at the
age of 60 for men and at the age of 50 for women, after 20 years of service.
(c) Retirement by reason of permanent total incapacity, after 20 years of
service for men under 60 years of age and for women under 50 years of age.
(d) Pension basis: For each year of service, 1 per cent of the average
monthly earnings for the last 10 years of service.
(e) Credit for service rendered to any of the plants of the subsidiary com-
panies of the United States Steel Corporation or to the predecessors of such
companies.
UNITED STATES STEEL COEPOBATION. 3407
In other words, a man may transfer from one subsidiary to an-
other and still retain his years of service.
(t) Mlnimnm pension, $12 per mo"ntli; maximum pension, $100 per month.
The operations of the plan for the ye^r 1910 are as follows :
Total number of pensioners Dec. 31, 1911 1,606
Number of pensions granted during 1911 l 565
Total amount of pensions paid during 1911 $281, 457. 37
Average age at which pensions were granted years 67
Average service of pensioners do 30
Average pension granted $20. 75
In addition to the amount expended for pensions alone, other benefits from
the fund were granted employees in the aggregate sum of $67,023, mailing the
total cost of pensions and benefits from the fund $348,480.37.
The cost of administration amounted to $12,813.24, making the total dis-
bursements of the fund $361,293.61.
The administration cost amounted to only 3.67 per cent of the disbursements.
Those benefits possibly Mr. Reed Iniows more about than I do.
I do not understand what they mean there. Oh, I see. They were
in connection with an old Carnegie plan.
Mr. Reed. In addition to the figures Mr. Roberts has just given
for the accident relief plan.
Mr. Roberts. That was part of an old Carnegie system.
The administration cost amounted to only 3.67 per cent of the disbursements.
Mr. BAE'rLETT. Recurring again to these safety appliances, I see
you have signs up printed in four different languages other than the
English language.
Mr. Roberts. Yes.
Mr. BAETiiETT. Can you tell what languages they were 1
Mr. Roberts. I think they are largely Hungarian dialects. Some
of these Hungarians can not understand each other, I think.
Mr. Bartlett. There are four different signs here.
Mr. Roberts. I think probably they are the different dialects of the
Hungarian. In Budapest, for instance, the printed signs at the shops
are not in letters. They paint on the signs what they sell, because the
residents in even Budapest can not read the languages ; there are so
many of them.
Mr. Bartlett. Have you any idea how many, amongst your em-
ployees, are illiterate and can read no kind of written signs?
Mr. Roberts. I testified this morning that at the Pencoyd Iron
Works the English-speaking people amounted to some 80 per cent.
Mr. Bartlett. That is an exception to the rule, is it not ?
Mr. Roberts. ISTo; I do not think so. There may be some cases
where you have larger percentages than this, but it is a fairly average
case.'
The Chaiemain". Take the figures you have given us about those
miners.
Mr. Young. Those are nationalities, not whether they can speak
the English language or not.
Mr. Reed. There is a system of symbols adopted for those men who
can not read. Mr. Close tells me they have the red ball, which is
Icnown all through the mills as the danger sign, just like the red
cross is the symbol for charity work.
3408 UNITED STATES STEEL COEPOEATION.
Mr. Egberts. That pension system is in its infancy. Whether it
will permanently be continued oh those lines or changes made I am
not prepared to say. My own personfil feeling is that we want to get
away from any idea whatsoever of charity connected with anything
like a pension system. It is a right, not a gift, and how that shall
be gotten at or brought about is an important matter. For instance,
the pension system of the Pennsylvania Eailroad has been working
now for some years and working very successfully ._ Everyone who
enters that service feels that he is entitled to it, that it belongs to him
when he reaches the time he should get it.
There is one thing in a pension system that is a hardship — in a.
good many pension systems — namely, if a man becomes incapaci-
tated prior to having worked the required number of years, he does
not participate in the pension. I was only speaking of that the other
day in regard to the pension system of the Pennsylvania Railroad.
A man must be in its employ a certain number of years before he can
obtain his pension. If he is incapacitated through no fault of his
own prior to that time, he does not participate in the pension. On the
other hand, the railroad in that case contributes to his support. It is
]}ractically the same as if he had gotten into the pension, but it makes
it appear as if there was a charity element, which I do not like per-
sonally.
The Chairman. For instance, I have here the number and the per
cent of foreign-born employees of the Oliver Iron Mining Co. who
speak English, May 1, 1907, by race or people.
Mr. Sterling. That is the per cent of foreign born. As I under-
stand it Mr. Roberts gives the per cent of the whole number of men.
Mr. Roberts. The whole number of employees.
Mr. Sterling. Do these men contribute anything to the pension
fund?
Mr. Roberts. The men contribute nothing.
Mr. Young. What percentage is given of those who speak the
English language ?
The Chairman. Austrian, 244 ; 30 per cent.
Mr. Young. That speak English ?
The Chairman. Yes; that speak English. That do not speak
English, 570.
Bohemian, 25, 51 per cent, speak English; 24 do not speak English.
Bosnian, 29, 19.9 per cent, speak English ; 117 do not speak English.
Bulgarian, 24, 11.4 per cent, speak English; 186 do not speak
English.
Mr. Young. These are total employees of those nationalities ?
The Chairman. The total per cent of foreign-born employees of
the Oliver Iron Mining Co. who speak English.
Mr. Young. I understand, but
The Chairman (interposing). This company had 12,478 employees
on July 1, 1908. The Americans were 25.8 per cent of this number.
The rest were foreigners. Of these foreigners, of the 75 per cent of
all the 12,000 employees-
Mr. Young (interposing). I was noticing as you read that the
numbers of men were very small in the nationalities that you men-
tioned.
The Chairjian. But there is a list of them here a yard long. Of
the Crontians 580 speak English and 1,310 do not. Of the Finnish
UNITED STATES STEEL COEPOEATION. 3409
1,372 speak English and 1,151 do not. Of the Italians there are
three lists. Of one set 146 speak English and 89 do not; of the
Italians (north) 164 speak English and 134 do not ; of the Italians
(south) 257 speak English and 238 do not.
Then here is the Magyar race ; 72 speak English and 138 do not.
Of the Montenegrin 28 speak English and 74 do not. Of the
Slav people 71 speak English and 120 do not. Of the Slovaks 145
Speak English and 214 do not.
Mr. YorrNG. Does it give any Swedes and Norwegians ?
The Chairman. There are French, German — all the races. The
totals are here. Out of a total of 10,114, 5,197 do not speak English
in that one company, the Oliver Iron Mining Co., who work alto-
gether about 13,000 men.
Mr. Young. I should very much doubt that statement, from my
own experience.
The Chairman. Only 10 per cent of the employees in this table
can speak English.
I have been quoting you from Labor Bulletin No. 84, published
in September, 1909. This report is prepared by Frederick S.
Crum, Ph. D.
Mr. Gardner. Read the heading of the table.
The Chairman (reading). " Number and per cent of foreign-born
employees of the Oliver Iron Mining Co. who speak English, May 1,
1907, by race or people."
Mr. Gardner. That is, of all the foreign born about half speak
English and half do not.
The Chairman. No; of the total number given about half speak
English. Of the foreign born only 5,197 speak English, out of a
total of 10,114.
Mr. Gardner. Yes ; I was correct in my statement that about half
speak English and half do not.
The Chairman. Yes. I read the other portion of it, Mr. Gardner.
I will' go over it again. I want to be absolutely just. Out of 12,478
employees in this company on July 1, 1908, the Americans were 25.8
per cent of this number. I read this before.
Mr. Gardner. It is just about that way. One-half of the for-
eigners speak English and one-half of the^foreigners do not. And
out of the whole number of employees 9 out of every 21 can not
speak English.
The Chairman. He also gave us the figure here that 20 per cent
of all the people employed in the mine were native born. Now, he
gives us the Pencoyd Iron Works, which shows an entirely different
condition.
I do not doubt for an instant the accuracy of Mr. Roberts's state-
ment; but we also have reports from very disinterested parties, like
Prof. Perdue and Mr. Neill, of the Bureau of Labor ; and I will say,
from my personal acquaintance with Mr. Neill and as a result of the
many conferences I have had with him, I have been impressed with
the fairness and conservatism of the Commissioner of Labor.
Mr. Roberts. Of course, Mr. Chairman, in stating the law of aver-
ages, they are made up of a number of individual instances. That
is, as I understand, an average result. Although you would not find
probably that same percentage to prevail among all the different
operations of the Oliver Iron Mining Co., neither would you find the
3410 UNITED STATES STEEL CORPOKATIOX.
same percentage prevails among all the individual plants of the sub-
sidiary manufacturing companies of the Steel Corporation ; but there
would be an average — some might be more, some might be less. ■
The Chaikman. This report takes in all the employees of the
Oliver Mining Co.
Mr. Egberts. True ; but it is an average of all of them as of some
one particular day.
The Chairman. Yes.
Mr. Egberts. I do not know, unless I had information, as to how
those statistics were made. I would want to know whether a census
had been made on some one particular day, as to whether all those
employees spoke English or did not speak English. Some of those
statistics may be made up from records made by the company at the
time a man was employed, and would not hold good six months or a
year after that, because in the meantime the man might learn suffi-
cient English to talk it.
The Chairman. This is made of date May 1, 1907.
Mr. Egberts. But was it made by actual solicitation of those em-
ployees to determine whether each one spoke English or not ?
The Chairman. I do not know.
Mr. Egberts. As I said yesterday, statistics sometimes prove to
be like a loaded gun.
The Chairman. I do not mean to testify, but I was up there; I
have mixed around those people, and apparently to me, from the
noise and rattle, it was a gibberish and babel of every language
under the sun except the English language. It was the exception
that we found one of those men, unless he were a skilled laborer, who
could talk the English language at all.
Mr. Eeed. That explains some of the chairman's misinformation.
The Chairman. All that the majority of those I saw could say
was, " Nicht versteh."
Mr. Egberts. Undigested foreigners are as dangerous as undi-
gested securities. I think it is a problem Avhich this country has got
to face before very long.
The Chairman. What I am getting at is this, that the Pencoyd
Iron Works appear to be an exception in the number of the Ameri-
can-born employees. >
Mr. Egberts. Not American born, but English-speaking. That
was without reference to birth.
The Chairman. If American born, they are bound to speak the
English language.
Mr. Ygung. Some people that are born abroad speak English. .
Mr. Egberts. You mean the American language?
The Chairman. Mr. Fitch gave a table here for the whole Car-
negie Co. Your Pencoyd Iron Works employ only a few thousand
men?
Mr. Egberts. That is all.
The Chairman. Is not that a finishing mill ?
Mr. Egberts. Xo. It is an open-hearth steel plant, making open-
hearth steel, and rolling mills making structural shapes.
The Chairman. It has been in operation a long time ?
Mr. Egberts. Yes; since 1852.
The Chairman. Is it not true that your newest mills always have
a greater per cent of foreign employees ?
J
UNITED STATES STEEL COEPOEATION. 3411
Mr. Roberts. No ; not necessarily.
The Chairman. If you were to start an iron mill in my country,
for instance, unless you imported your employees every man would
speak the English language, because 95 per cent probably of the
people down there are American born.
Mr. Roberts. And as soon as you started that those' Americans
would take all the best jobs, and would not want the others.
The Chairman. They would if you would pay them enough.
Mr. Roberts. There would not be enough there to go around.
No ; I do not think that follows. I think jt depends somewhat upon
the location. You get into a new coimtry and you find an increased
number of foreign born among the population. On the other hand,
when you come to New York, which is a port of entry, you find a
very large foreign population there.
Mr. Gardner. You do not loiow how these statistics were made
up?
Mr. Roberts. I do not ; no.
Mr. Gardner. But you think very likely they were made up from
your books?
Mr. Roberts. Which statistics are these?
Mr. Gardner. That the chairman has been reading.
Mr. Roberts. Oh, I do not know how they were made up.
The Chairman. I will try and get this man here if you want him.
Mr. Gardner. I guess it is rather branching off from the main
thing, anyway.
As I understand your position, you think perhaps they were made
up from the cards showing whether these men could speak English
when they came into your employ?
Mr. Roberts. That was my idea, as against a direct solicitation as
of a certain day, to see whether they spoke English or not.
Mr. Gardner. So far as you know, there was no census made of a
sample occupation, for instance, and that multiplied by the total
number of employees? You do not know, for instance, whether this
gentleman made an actual census of a part of your employees and
then assumed that proportion would hold good through them all ?
Mr. Roberts. No; I have no knowledge whatever as to any data
in regard to it.
Mr. Gardner. As a matter of fact, if you took one department of
your works and took a census of that, as to ability to speak English,
would that be a fair sample of the whole ?
Mr. Roberts. Not at all. Each individual department would have
to be treated individually.
Mr. Gardner. That is to say, the degree of skill is so different ?
Mr. Roberts. Yes; it would depend upon the nature of the occu-
pation.
Mr. Gardner. In some higher-skilled occupations you would ex-
pect to find a greater proportion who spoke English ?
Mr. Roberts. If you took our machinists, they probably would all
speak English.
Mr. Gardner. Is there such a thing as an average shop ?
Mr. Roberts. No ; they are only average results. Each shop is an
individual activity in itself.
Mr. Sterling. When the steel company need men, do they adver-
tise for men?
3412 UNITED STATES STEEL CORPORATION.
Mr. Roberts. I should think that would differ very much in each
individual works. As a rule they do not advertise for men. Men
seek the employment.
Mr. Steeling. Do you know whether they go to employment agen-
cies to get men?
Mr. EoBERTS. I think possibly on certain occasions they may notify
employment agencies that they are in need of workmen.
Mr. Sterling. Do you say you prefer men of any particular na-
tionality?
Mr. Roberts. I never heard of it. My own experience has been in
the time prior to 1900 that we rarely, if ever, sent to an employ-
ment agency. I do not believe we ever did. Men Iniow where the
work is apt to be obtained, and they seek it. They apply. We had a
small building which was known as an application office. You would
find men coming to that application office regularly twice a day,
when the turns commenced, applying for work.
Mr. Sterling. A sort of employment agency?
Mr. Roberts. I would not term it an employment agency, but it
was an office where men made application when they wanted work.
The Chairman. Did you keep a list there of objectionable men?
Mr. Roberts. None whatever.
Mr. Sterling. When the strike came on in 1909 I believe you were
connected with it at that time, were you not?
Mr. Roberts. I became a director in the fall of 1909.
Mr. Sterling. Did tlie company, so far as you know, or any of the
authorities of the company advertise or authorize an advertisement
for men of Hungarian and Polish birth?
Mr. Reed. Syrians and Roumanians.
The Chairman. Poles preferred.
Mr. Roberts. No action was ever taken by the Steel Corporation
in that matter, and to my knowledge it was never mentioned; and I
would say that I have been pretty regular in attendance on the
meetings.
Mr. Sterling. Do you know, as a matter of fact, whether the
men who have authority to hire — the officials of the company who
have authority to hire — prefer men of those nationalities for work in
the Steel Corporation or any part of the works?
Mr. Roberts. I should say to the contrary. I have no question in
my -mind in the world but that any foreman or superintendent in any
subsidiary company of the United States Steel Corporation, or in
any other steel works, would take at any time an English-speaking
man in preference to one who did not speak English.
But as to nationalities of that kind, there is no preference. I think
there is, for instance, the Polander, who is an extremely good, steady
man as a rule, better than some of those who come from southern
Russia, I think. It is just judging from my own experience. T can
not locate them geographically exactly, but there is among some of
those races more sturdiness, rather stronger men than others. Possi-
bly it has occurred from previous employment. Some have been
accustomed to agriculture, I think.
Mr. Sterling. Mr. Chairman, where is that advertisement that was
exhibited the other day?
The CiiAiR^MAN. I will get it for you.
MUti
UNITED STATES STEEL COEPOEATION. 3413
Mr. Steeling. I will show you an advertisement that was exhibited
here the other day with reference to the employment of men and ask
you if you know anything about it.
Mr. Baetlett. While we are waiting for that I want to ask in re-
regard to pensions. Among these rules I notice the following :
An employee placed upon the pension list must retire from and can not re-
enter tlie service, but may engage in ottier business so long as sucb other, busi-
ness is not of the same character as his former employment.
A man that is 60 years of age, if he has been in the employment of
the company 20 years, retires and receives a pension, as provided here,
of not more than $100 nor less than $12 a month. But the provision
here is if he is placed on the pension roll he can not reenter your
service, but he may engage in other business so long as such other
business is not of the same character as his former employment.
Mr. EoBEBTS. That 60-year age pension is a voluntary retirement
on the part of the men. It is not compulsory.
Mr. Baetlett. I understand that.
Mr. KoBEETS. But I presume that is a protection, for instance
Mr Baetlett (interposing). I merely use 60-years as an illus-
tration.
Mr. EoBEETS. It might be a superintendent. He might have knowl-
edge which we would not want him to use by entering the employ
of a competitor. I can imagine such a case as that.
Mr. Baetlett. Yes; but it does not say that.
Mr. KoBEETS. It does not say that, but it simply provides that he
shall not enter a similar employment.
Mr. Baetlett. Not that a man could not be employed in any steel
mill?
Mr. EoBEETS. In other words, take a distinct illustration. If the
Carnegie Steel Co. has a superintendent, or some one who has knowl-
edge of trade matters, that they would not want divulged to a com-
petitor, it would prevent him from entering the employ of Jones &
Laugjilin, for instance, while he was on the pension list. There is
nothing to prevent him leaving the employ of the Steel Corporation
at 60.
Mr. Baetlett. But, if he accepts a pension, he can not reenter
your employment?
Mr. Robeets. Yes; he can do anything except to enter a similar
employment.
Mr. Baetlett. No. It says he can not reenter your service, and
must retire.
Mr. Eobebts. As long as he takes the pension. If he gives up his
pension he can reenter the employment.
Mr. Baetlett. No ; it does not say so. I will read it again :
An employee placed upon the pension list must retire from, and can not re-
enter the service, but may engage in other business so long as such other
business is not of the same character as his former employment.
Mr. Robeets. But I understand " who is placed upon the pension
list "
Mr. Gaednee (interposing). It seems to me that is a perfectly
plain provision, that a man should not take advantage of a voluntary
pension at 60 years of age, because he doubtless will take it.
3414 UNITED STATES STEEL COBPORATION.
Mr. Bartlett. I did not fix it at 60. That is a mere illustration.
Mr. Gakdnee. If he is able to render service he ought not to be
pensioned until he gets ready to say he is no longer able to continue.
Mr. Bartlett. But the rule provides that he can be pensioned
at 60. ^ ,
Mr. Gardner. Certainly. It seems to me the obvious result of not
having such a rule would be that when a man became 60 years of
age he would take a pension from the United States Steel Cor-
poration and go to work for somebody else.
The Chairman. By the way, gentlemen, I have had Mr. Eagle
here for two days. "We can get thorugh with him in five minutes.
Mr. Reed. Mr. Roberts is almost through.
Mr. Roberts. Three minutes will finish me.
Mr. Sterling. Before you go, Mr. Roberts, here is an advertise-
ment of the Pittsburgh Gazette-Times of Thursday, July 15, 1909,
which is the advertisement I mentioned a few minutes ago [handing
same to the witness].
Mr. Roberts. Do I understand that is alleged to be an advertise-
ment of the United States Steel Corporation?
Mr. Sterling. Yes.
Mr. Roberts. To the best of my knowledge it was not.
The Chairman. The oflScer of the American Sheet & Tin Plate
Co., who testified a few days ago, said he had inserted it.
Mr. Reed. If I may be permitted to explain to the witness, it has
been testified by one of the officers of the American Sheet & Tin
Plate Co. that they retained an employment agency to obtain men
for them during the tin-plate strike of 1909.
Mr. Roberts. But that is the advertisement of the employment
agency.
Mr. Reed. And that employment agency put that advertisement
in the papers after it had been stated by the tin-plate officers to the
employment agency that if Americans were not available they would
prefer that class of foreigners to others.
Mr. Sterling. I did not hear that testimony or I would not have
taken the time to put that question. Who was he ?
Mr. Reed. Mr. Irvin.
Mr. Danforth. Before Mr. Roberts finishes, I would like to ask
him a few questions.
We have had several witnesses before us who complained in rather
unmeasured terms against this pension system of the corporation.
They said it was un-American that any pension system should incor-
porate in its terms the raising of a certain portion of the pension
from the men who would be subsequently pensioned. What do you
say in regard to that?
Mr. Roberts. I should think that was a question that was open to
discussion. I do not consider this system has arrived at perfection
rtt all. But I do believe it is better, for instance, than if we took
the other extreme of the United States Government and provided
nothing whatever for its employees in their old age. I, think it is a
step in the right direction.
I am opposed, however, to any aspect of it that may have any
tendency to look like a charitable institution. I think the employee
should feel that after those years of service he has something to
COEPOEATION. 3415
which he is entitled, just the same as an officer in the Army or Navy
looks to retirement at a certain age, on a pension, as part of the
system which belongs to him. He does not contribute to it. But at
the same time no one for a moment will say that an officer retired
is a subject of charity.
Mr. Danforth. One witness, who perhaps was a theorist, because
he did not claim to know the facts in regard to what he was telling us,
said that this was un-American, that it tied the men down. It seemed
to him it was for the purpose of retaining the men in the service and
not leaving them free agents.
I think I have made a fair statement of that. One of the members
of the committee suggests to me he described it as a species of
slavery ; that the purpose was not a friendly one, but it was to tie up
the employees to service with the corporation.
What have you to say in regard to that ?
Mr. Egberts. As I said before this morning, I believe where men
feel that their condition is bettered it necessarily follows, as night
does day, that it is to their interest to remain where they can do
better than elsewhere. Therefore, while they are perfectly free
agents to come and go as they please, the contrary toiihat proposi-
tion would be to have a policy whereby the longer they were in your
employ the greater their desire to leave it. That certainly would
not be a sensible policy in any shape or form.
I think a pension plan does aid in making loyalty among em-
ployees to the corporation which employs them. It is a system which
we have in operation on the Pennsylvania Railroad and have had
for some years. It has worked extremely well there. The employees
of the Pennsylvania Eailroad all feel that after a certain term of
service they receive this pension.
Now, whether it is better to have the men provide a portion of that
is a matter of which I think much can be said on both sides, possibly.
I am not prepared to pass an opinion ; I have not thought enough of
it. But I do think this pension system is a step in the right direc-
tion. I do not consider, by any means, that it is m a final form. All
these things are more or less tentative and they will be probably
changed. But, at the same time, I am not prepared to say at all
that it is the proper policy for the men to contribute. There are
other means by which, if they wish to use a portion of their wages,
they can provide annuities, and so on, through other channels.
But, again, if that provision is voluntary, you know what human
nature is. Some are improvident. They do not look forward to
old age. They say, "We will be happy while we may," and let it
slip by. If, by compulsion, you take it from their wages, you are
practically reducing their wages.
Mr. DANroRTH. Do you think at the present stage of the pension
system, in your corporation, the employees would look with favor
upon the retention of any portion of their wages for pension, even
if they were given a contract right to the pension ?
Mr. Egberts. No ; I do not think they would. I do not think they
would be willing to accept any such condition.
Mr. Danforth. You think it would create a disturbance in the
operation of a corporation?
Mr. Egberts. I absolutely do.
3416 UNITED STATES
Air. Danforth. Theie is a clause here which has.been commented
upon. I read one of your rules:
A pension may be withlield or terminated in case of miscouduct on the part
of the beneflciaiy or for other cause sufficient, in the judgment of the board,
to warrant such action.
Other witnesses have commented upon that as a convenient loop-
hole of depriving men, after long years of service, of the benefits of
your system.
Mr. Egberts. I understand that applies to some one who is on the
pension list. It does not apply to misconduct prior to the receipt
of the pension, but to misconduct during the receipt of the pension,
does it not ?
Mr. Danforth. Well, I do not know.
Mr. Egberts. No such case has come before me, and I think those
cases are referred to the financial committee of the Steel Corporation.
I believe it is the final arbiter.
Mr. Danforth. It may come down to the finance committee
eventually.
Mr. Eeed. As a matter of fact, a great many pensioners are men
who have been out on strike against the company.
Mr. Egberts. There is no doubt about that.
Mr. Danforth. These witnesses were referring to this rule in that
connection.
Mr. Egberts. I do not think that applies to any misconduct prior
to the receipt of the pension. I think it possibly might be, if some
misconduct occurred during the receipt of the pension, that then it
is within the power of the company to withdraw it.
Mr. Danforth. As you understand it, that particular clause does
not refer to a man or woman receiving a pension after the proper
length of service which would justify the giving of a pension to such
person ?
Mr. Egberts. It does not refer to any misconduct prior to that
time; no.
Mr. Danforth. And has not anything to do with the operation of
the other pension rules in regard to the age at which they can obtain
them. It is automatic.
Mr. Egberts. In one case it is voluntary and in the other case it is
compulsory.
Mr. Danforth. And at those specified ages, at classes 1 and 2, they
can go on the pension list?
Mr. Egberts. Exactly.
Mr. Danforth. Automatically?
Mr. Egberts. Exactly.
Mr. Danforth. Or, in No. 1, automatically?
Mr. Egberts. Exactly. I think some of those clauses are safe-
guards which have been put inj feeling our way to a certain extent.
It is a new system. It was desired to nold a certain amount of con-
trol over it until we saw how it developed.
I know of no cases of the kind to which those rules are applicable.
Mr. Danforth. How long has this pension system been working in
the corporation?
Mr. Egberts. Only since January 1, 1911, I think.
COKPOEATION. 3417
The Chaieaiak. Mr. Roberts, I caught from one of your answers
that you were under the impression the Interstate Commerce Com-
mission had some control over wages paid men engaged in the service
of common carriers of the Steel Corporation and of others.
Mr. Roberts. You say I said so ?
The Chairman. That was the way I caught it.
Mr. Roberts. No ; I did not intend to give that impression at all.
Mr. Reed. You mean as to hours of service?
Mr. R,OBERTS. I said that our transportation companies were verv
similar in their operation to all other common carriers and subject
to their rules and regulations.
The Chairman. Do you not keep data as to the wages paid those
men, their nationalities, etc., like you do as to other employees of
whom you have spoken?
Mr. Roberts. I can not answer that for the railways. I do not
know. I have not investigated those matters.
The Chairman. Will you be good enough to furnish this commit-
tee with a statement of the number of employees on the Duluth,
Missabe & Northern and the Duluth & Iron Range. I mean, em-
ployed in the operation of the road. I do not mean in the construc-
tion. Imean like firemen, engineers, brakemen, and conductors.' I
would like to have the wages paid these men and their nationalities,
if you have that information.
Mr. Roberts. I doubt if we have their nationalities. I am sure they
are all English speaking. I can be sure of that.
Mr. Reed. If we can get that information we will give it to the
chairman.
The Chairman. You will get that?
Mr. Reed. We will try to get it.
The Chairman. It might be gotten from the Interstate Commerce
Commission, but I doubt it. Since this information has gone into the
record I am very anxious to get this other in also.
Mr. Reed. If it is available the committee will get it.
The Chairman. I presume you would not keep these carefully tab-
ulated statements as to other employees and not keep the same infor-
mation as to railroad employees?
Mr. Reed. I presume not.
The Chairman. I would like to have it, not only as to the Duluth,
Missabe & Northern and the Duluth & Iron Range, but also the Bes-
semer & Lake Erie and the Elgin, Joliet & Eastern.
Mr. Reed. Mr. Roberts has one thing more, and then he is through.
Mr. Danforth. Have you put into the record the data in regard to
ore miners or employees in the northwest?
Mr. Roberts. Which data is that?
Mr. Danforth. Have you put into the record the data in regard
to ore miners or employees in the northwest?
Mr. Roberts. What data is that?
Mr. Danforth. Similar to those employees you have already re-
ferred to.
Mr. Roberts. I put in a report from the president of the Oliver
Iron Mining Co., which I did not read yesterday. It was among the
data which I put in yesterday. I presume it has gone into the record.
•iiiS UNITED STATES
I have only one subject more, and that is the profit-sharing plan.
I havo here a letter addressed to me under date of February 10, 1912,
i'rom Mr. Eichard Trimble, secretary, which reads :
At Mr. BoDing's suggestion I am sending you the original employee stock-
subscription circular and the offer to officers and employees for 1912.
In response to this year's offer we have to date received subscriptions from
36,939 subscribers for 61,339 shares, divided as follows:
Shares.
.Subscriptions from employees receiving salaries of $800 per annum
and under, 15,304, for 17,223
Subscriptions from employees receiving salaries from $S00 to $2,500 per
annum, 20,051, for 35,238
Subscriptions from employees receiving over $2,500 per annum, 1,584,
toi- , 8, 87»
The above is not quite complete, as subscriptions from employees of the
steamship compauy are not sent in until the opening of navigation, but when
complete will show an increase over last year's subscription of about 50
per cent.
I submit herewith a circular addressed to the officers and em-
ployees of the United States Steel Corporation and of its subsidiary
(companies, under date of December 31, 1902, in regard to this
subject. Also a circular addressed to the officers and employees of
the United States Steel Corporation and of its subsidiary companies,
under date of January 2, 1912.
The Chaibman. Do any of those contain the resolution providing
for profit sharing among the officers where the returns are above
so much per annum, where the profits are above so much per annum?
Mr. Roberts. I do not think I understand what you mean.
The Chairman. You have a resolution somewhere to the effect
that if your profits are over so many millions per year, then a cer-
tain per cent, 2 or 3 per cent I believe it was, is to be divided among
the officers of this concern, to be determined by the executive com-
mittee.
Mr. Roberts. That is another matter entirely.
The Chairman. That is not in?
Mr. Roberts. No. That has nothing to do with the stock sub-
scription.
Mr. Gardner. Have you that resolution in evidence?
Mr. Reed. It is part of the minutes of the Steel Corporation which
they have submitted time and time again. I imagine the chairman
has a copy of it.
Mr. Gardner. It is not in the record?
Mr. Reed. It is not in the record.
Mr. Gardner. I never heard of it before.
The Chairman. There is such a quantity of those minutes. I
asked Mr. McRae if he had it, and I think he said he did.
Will you furnish a copy of that resolution, Mr. Reed ?
Mr. Reed. Yes, sir; we will obtain it.
Mr. Roberts. Now, Mr. Chairman, I believe I have finished. I
would only like to say one word, and that is that in all I have said here
I want to put myself finally upon record that I am at all times
willing to be in the front rank in any work which is done to im-
prove conditions of the employees, but I will not lend my aid to
holding out any glittering hopes, I might say, which in the end will
not be realized and can not be realized.
OHPOEATION. 3419
I have been among workmen for a great many years. I have now
a voluntary testimonial from over 3,000 men with whom I was a
fellow workman for more than 25 years, and I am perfectly willing
to let that speak for itself so far as my position is concerned.
I do believe that the solution of these problems will be one of
evolution rather than revolution. You can not change this indus-
trial system in a day or a night, or 10 years. I believe what I have
set before you here has gone very far toward solving a number of
the problems which have confronted us in the past.
I am extremely indebted for your great patience. If I can answer
any questions I will be very glad to do so.
The Chairman. We are Very much indebted to you. 1 feel I can
speak, I know for the chairman, and possibly for the committee,
when I assure you I do not know of any disposition on the part of
this committee toward revolutionary remedies.
Mr. Egberts. I did not mean for a moment to apply that to the
committee. I was speaking of some solutions which are popular at
the present time.
The Chairman. We understood. We are very grateful to you,
Mr. Roberts ; you have been very kind.
STATEMENT OF H. H. EAGLE.
The witness was duly sworn by the chairman.
The Chairman. Mr. Eagle, I desire to state that Mr. Seldes was
on the stand here some few days ago and made a statement with ref-
erence to a list of objectionable employees of the Steel Corporation.
I knew little about this list. I had heard that there was such a list
in existence and asked him about it. 1 presumed he was speaking
about an actual list and knew he would dislike to give the name oi
his informant.
It was very properly suggested, however, by certain members of
the committee that, having stated there was a list which was ap-
parently a black list in existence, it was due to the United States Steel
Corporation that he should give the name of his informant. After
consideration of the matter I came to the conclusion that the gentle-
men asking for the information were right. The chairman, in his
hesitancy to ask this man to answer, notwithstanding the fact that
the information was given to him in confidence, thinks his position
was well taken.
Under the peremptory order of this committee he was forced to tell
the name of his informant. He said that you had spoken to him of
this list, which was in your possession, although not your property
at that time. I was then directed by this committee to issue a sub-
poena duces tecum for you.
I advised you immediately that unless you appeared before this
committee I would be forced to exercise such authority as was vested
in me by the House of Representatives to force you to appear before
this committee and to produce the list.
Now, I want to know if you have that list in your possession, and
if Mr. Seldes was correct.
Mr. Eagle. I have what purports to be a copy of that list. .
Mr. Reed. May I glance at it ?
17042— No. 51—12 3
3420 UNITED STATES
(The witness handed counsel the paper as requested.)
The Chairman. Do you know from whence that list was obtained?
Mr. Eeed. You are asking him of his own knowledge ?
The Chairman. Yes.
Mr. Eagle. A man named Thomas Morgan, formerly employed
as labor agent by the Carnegie Steel Co., brought that copy and the
original, or what he said was the original, in a book to the Pittsburgh
Leader for the purpose of selling it to us. He brought it to Managing
Editor Emge and Mr. Moore, the editor in chief. I was there at the
time.
The Chairman. Did you see the book?
Mr. Eagle. I saw the book.
The Chairman. What was in this book? Did you compare the
book with the list?
Mr. Eagle. No; I did not.
The* Chairman. Did you see the entries in the book ?
Mr. Eagle. No ; I did not. I saw something in the book.
The Chairman. What did the book contain, from what you re-
member ?
Mr. Eagle. I could not say that. Mr. Morgan, however, said this
was a copy, and I presume it was, inasmuch as he was trying to sell it
to us ; and this was what I had to work on.
The Chairman. Did you ever go to see any of these men whose
names were on the list ?
Mr. Eagle. Not personally. I assigned other men to do it.
The Chairman. Did they go to see these men ?
Mr. Eagle. The list is so old that most of the men have left town,
gone away, or died.
The Chairman. At the time did you send men to see them?
Mr. Eagle. I did.
The Chairman. Did you find they were ex-employees of the
company ?
Mr. Eagle. One or two.
The Chairman. Who had been discharged and could not secure
employment thereafter?
Mr. Eagle. No ; they had not been discharged. They had left of
their own volition in each instance. I think there were two. As I say,
the list was very old, and it was difficult to get in touch with any-
body on it.
Mr. Gardner. You mean the list was very old at that time, or is
very old now ?
Mr. Eagle. It was very old at that time; it is a year and a half
older now.
Mr. Eeed. The dates, I notice, run back to 1898, apparently.
Mr. Gardner. What is a recent date?
Mr. Eeed. Here is a date of September 4, 1903. It is all on the
same land of paper, but with different typewriters, apparently.
Mr. Danforth. Did you have this list made from the original?
Mr. Eagle. No.
Mr. Danforth. Did you compare it with the original ?
Mr. Eagle. No.
. The Chairman. Do you know where Mr. Morgan is now ?
Mr. Eagle. I do not.
The Chairman. What was Mr. Morgan's business?
UNITED STATES STEEL COKPOEATION. b421
Mr. Eagle. He said he was a labor agent, whatever that is.
Mr. Keed. Do you know yourself?
Mr. Eagle. No.
The Chaieman. Do you know whether or not you have a man in
your employ as labor agent of the Carnegie Steel Co. ?
Mr. Reed. There was a man named Morgan employed by the as-
sistant to the president — I think it was, of the Carnegie Co. — ^up
until about 1905 or 1906.
The Chairman. As a labor agent?
Mr. Reed. As a clerk.
Mr. Steeling. Did you buy the list ?
Mr. Eagle. No.
The Chairman. What was the address of Thomas Morgan at the
time he gave you this list?
Mr. Eagle. The Iroquois Apartment, Pittsburgh — on Forbes
Street.
The Chairman. What do you mean by Iroquois?
Mr. Eagle. That is the name of the apartment house, an apart-
ment house on Forbes Street.
The Chairman. Did you buy the list ?
Mr. Eagle.. No. That is the reason for my reluctance in present-
ing it here. It is not my property, nor the property of the Pitts-
burgh Leader.
Mr. Sterling. Did he finally give it to you without pay ?
Mr. Eagle. No. He took his book. I do not know whether the
proposition was ever definitely and finally refused or not. He took
the matter up with our editor and managing editor, and this list
was kept in their possession. He never came back. He dropped out
of sight, and I don't know where he is.
Mr. Steeling. The book you speak of, as I understand you, con-
tained the original list?
Mr. Eagle. Yes.
Mr. Sterling. From which he said this list was made ?
Mr. Eagle. Yes.
Mr. Sterling. Did you see the book itself?
Mr. Eagle. I saw it, but I did not scrutinize it very carefully.
Mr. Steeling. You never compared it with this ?
Mr. Eagle. No.
Mr. Steeling. Who did he talk to in connection with this paper,
besides you?
Mr. Eagle. He talked to the editor in chief, Mr. Moore.
Mr. Sterling. Do you know whether he compared it ?
Mr. Eagle. I am pretty certain he did not. Also he talked with
Mr. Emge, the managing editor.
Mr. Sterling. Why did he think your paper wanted to buy it?
Mr. Eagle. He was not trying to sell it to us alone. It was a
syndicate proposition. That is to say, he wanted a string of papers
to take the list and print it.
Mr. Steeling. What did he say about the list?
Mr. Eagle. He said it was a black list, and it could be confirmed
as such. He seemed to think it was of news value because of that.
Mr. Gardner. Did he say that each of the companies had one of
these books, such as he was trying to dispose of ?
Qf^'i UNITED STATES
Mr. Eagle. Yes; I believe the superintendent of each company,
or of each mill, had one, as he explained it..
Mr. Gaednee. And each one of them held a duplicate of this?
Mr. Eagle. Yes.
Mr. Gardner. Who did you say prepared the copy ?
Mr. Eagle. I can not answer that. I do not know.
Mr. Gardner. Was that one of the copies which he prepared
himself to show you — a sample of his goods — or was it something
that he alleged to have gotten from one of the subsidiary companies!
Mr. Eagle. I do not believe he ever made any direct statement on
that subject. But he left me under the impression this was a copy
of the book, and that from this copy could be secured the names of
men who could be looked up.
Mr. Gardner. What was his object in giving you a copy?_
Mr. Eagle. I guess he did not want the book — ^the original — to
get out of his possession.
Mr. Gardner. What price did he ask for the original?
Mr. Eagle. I do not know. Something like $5,000, I believe,
although I am not certain.
Mr. Gardner. Did he state where he got the original ?
Mr. Eagle. No ; I did not hear him.
Mr. Gabdner. Had he been assistant to the president of the Car-
negie Co. ?
Mr. Eagle. I can not answer that ; I do not know.
Mr. Gardner. You did not know anything about him ?
Mr. Eagle. I did not. Mr. Moore may have.
Mr. Eeed. Excuse me, Mr. Gardner. I did not say there had ever
been an assistant to the president named Morgan. There was a clerk
in the office of the assistant named Morgan.
Mr. Gardner. Was his name Thomas Morgan, do you remember!
Mr. Eeed. I believe so.
The Chairman. Do you know where he is now ?
Mr. Eeed. No.
Mr. Gardner. Do you know, Mr. Eagle, where Thomas Morgan is
now?
Mr. Eagle. I do not.
Mr. Gardner. When did you hear of him last ?
Mr. Eagle. I should say 18 months ago.
Mr. Gardner. Was he living in Pittsburgh then ?
Mr. Eagle. Yes.
Mr. Gardner. Do you think he is living in Pittsburgh now ?
Mr. Eagle. I could not say that, because I do not feaow.
Mr. Gardner. There has been no further negotiation regarding
this book since two years ago, is that it?
Mr. Eagle. Approximately. It has been lying in my desk for
probably that long.
Mr. Sterling. Was he then in the employ of the company at that
time?
Mr. Eagle. I believe he was not; no.
Mr. Steeling. Did you understand he had stolen this book from
the company when he left its employ, or at some other time ? Taken
it without their consent?
Mr. Eagle. Well, I do not know that. I believe I did hear some-
body say he had stolen it, but I do not think he said he had stolen it.
UNITED STATES STEEL COBPOEATION. 3423
Mr. Gardner. I am not able to get this through my head. Here is
a list which runs away back before the formation of the United
States Steel Corporation, and yet, according to this man, it was a
iist shuffled around among the various subsidiary companies, when
the list itself shows that there were no such things as subsidiary
companies at the time.
That list is apparently of blacklisted men, or the greater part
of it, whether blacklisted for cause or otherwise, before the forma-
tion of the United States Steel Corporation. According to the state-
ment that was made here, this is a list which was used among the
subsidiaries of the Steel Corporation.
Now, was that prepared in 1901, 10 or 15 years after the men had
been discharged ? Did you not say 1888, Mr. Eeed ?
Mr. Reed. 1898 was the earliest date I noticed.
Mr. Gardner. Three years after the men had been discharged.
Was that your understanding?
Mr. Eagle. I did not have an imderstanding on that phase of it
at all.
Mr. Sterling. You had charge of the matter and sent out some
messengers to interview some of these men ?
Mr. Eagle. I sent out reporters.
Mr. Sterling. And found two of them ?
Mr. Eagle. Two, I believe.
Mr. Sterling. Aiid no more ?
Mr. Eagle. I could not answer that. There were two that I re-
member, notes concerning whom I found with the list when this
matter first came out, after I had dug it out of the debris on my desk.
Mr. Young. They were men you say had quit ?
Mr. Eagle. Yes.
Mr. Sterling. They had quit at the time of the strike ?
Mr. Eagle. No ; they had quit to take other positions.
The Chairman. What does W. I. W. mean? I guess that- is
Wabisha Iron Works.
Mr. Sterling. Had they tried to get back ?
Mr. Eagle. Yes. That is, they were out of a job and tried to get
other positions.
Mr. Sterling. This gentleman who was here the other day said
you had interviews with these men ?
Mr. Eagle. Not interviews.
Mr. Steeling. Does that show from the statements why they were
not taken back into the employ of the Steel Corporation?
Mr. Eagle. No. In neither instance did they have any impression
they were on the black list. They just knew they could not get
connected up again with the Carnegie Steel Co. They did not know
why. They thought they apparently had left in good standing.
Mr. Gardner. You found two men who said they tried to get
back and could not ?
Mr. Eagle. Yes.
Mr. Gardner. Were those men discharged for being labor organ-
izers or labor agitators? Were they blacklisted because of that or
for other causes ?
Mr. Eagle. I could not answer that.
Mr. Gardner. What were their names ?
Mr. Sterling. He says they quit of their own accord.
3424 UNITED STATES STEEL COEPOKATION.
Mr. Eaglz. John Thomas is the name of one man.
Mr. Gardner. Is this list in alphabetical order ?
Mr. Eeed. In no kind of order, either in reference to dates, com-
panies, or anything else ; just a hodgepodge of names.
Mr. Gardner. Did you look up this John Thomas ?
Mr. Eagle. Yes.
Mr. Gardner. What had he been discharged for?
Mr. Eagle. He had not been discharged.
Mr. Gardner. What was the annotation against his name on the
alleged blacklist?
Mr. Eagle. For cause, I believe.
Mr. Gardner. He was not one of these labor agitators?
Mr. Eagle. No.
Mr. Gardner. Who was the other man you saw ?
Mr. Eagle. A man named Harry Watkins.
Mr. Gardner. What was entered against his name ?
Mr. Eagle. For cause, also, I believe. I am subject to correction.
The Chairman. Do you remember going to see a man named John
Harrigan, of the American Steel Wire Co. ? I see he is listed for com-
ing in the mill through the wrong entrance.
Mr. Eagle. No ; I do not believe so.
The Chairman. Did you give us a man named William Hamley?
Mr. Eagle. No. I would like to make a statement in regard to the
men we tried to interview. This man Morgan, who brought in the
list, gave me certain names of men whom he said were still in town
and whom we could see and get confirmation of what he said — from
whom we could get their stories. Of course, any names that were
on this list that he gave me I did not undertake to look up at all. In
several instances of the names of the men that he gave me as it being
posible to see, and as still living in Pittsburgh, we found had gone
away — had droped out of sight in some way.
Mr. Yottng. Did you publish anything in the Leader regarding this
matter ?
Mr. Eagle. We printed a story some day or so after we got this
list saying we would print the blacklist of the Carnegie Steel Co.
We never did so, however.
Mr. Young. Why did you not?
Mr. Eagle. Because we found it was too old, and that, together
with Ihe fact he wanted too much money, we thought, from a news
standpoint, deterred us.
The Chairman. Did you go to see a man named William Hamley,
of the E. F. Co. ? What company is that ? The charge was refusing
to work straight time on Sunday.
Mr. Eagle. No.
The Chairman. Here is one named P. Hughes, charged with re-
fusing to work straight time on Sunday.
Mr. Eagle. No.
Mr. Reed. May I suggest a question, as to whether the witness, in
the course of this hearsay that he got from Morgan, got the impres-
sion that this list was ever allowed to go outside of the Steel Corpo-
ration or the Carnegie Steel Co., or whoever was supposed to have
had it?
UNITED STATJSS HTiSJiL, COBPOEATION. 3425
My understanding of a blacklist is one that is evidence of con-
spiracy among a number of different employers not to engage the
services of a particular person.
Mr. Young. That is a proper question, and I will put it.
Mr. Gardner. There is a little more than that. While I admit
it requires circulation amongst other employers to constitute con-
spiracy, at the same time where a large number of subsidiaries have
come together, constituting the great employer of the neighborhood,
I think it is competent to ask whether the blacklist circulated
amongst those subsidiaries, although they were all under the Steel
Corporation.
Mr. YoTTNG. That is Mr. Eeed's question.
Mr. Reed. We might add that question to the other question.
Mr. Ga'rdner. I mean there are two distinct things there. I will
confess, from the appearance of that list, I can not imagine how it
could have circulated, because it looks to me like a collection of
documents made from time to time for the Carnegie Steel Co., or
whatever it is.
Can you tell me when the Clairton Steel Co. was acquired ?
Mr. Eeed. It was bought about in 1904.
Mr. Gardner. I notice several entries referring to the Clairton
Steel Co.
Mr. Eeed. It was in 1904, I think.
Mr. YoTJNG. Did Morgan make any statement to you, that you
recollect, as to whether this was a list kept by the Carnegie Co., or
kept by the Carnegie Co. with other companies, and circulated by
the Carnegie Co. among other companies?
Mr. Eagle. I can not remember. This was some year and a-half
or two years ago, and since then many matters have come up.
Mr. Young. You spoke of it as the Carnegie blacklist?
Mr. Eagle. That is my recollection. He stated it not to me, but in
my presence, in the office.
Mr. Young. That is, what you understood he was trying to sell
was a blacklist kept by the Carnegie Co. ?
Mr. Eagle: That is it.
Mr. Sterling. Had he been discharged from employment ?
Mr. Eagle. I do not know.
Mr. Sterling. Or did he quit of his own accord ?
Mr. Eagle. I do not know.
Mr. Gardner. Do you know whether or not he was ever in the
employ of the Carnegie Co. ? -
Mr. Eagle. I know nothing except what he told me.
Mr. Sterling. He said he had been?
Mr. Eagle. He said he had been a labor agent, I believe.
Mr. Sterling. What did he mean by labor agent ?
Mr. Eagle. I did not ask him.
Mr. Gardner. What did you think he meant, that he had been
somebody they employed to get labor for them ?
Mr. Eagle. I do not know that I gave the matter very much
thought. I presumed he was some sort of an investigator in regard
to labor conditions.
3426 UNITED STATES STEEL, UUUi'OKATiUJN .
Mr. Gardner. That he was a confidential employee of the Carnegie
Co., who rather kept them informed of labor conditions?
Mr. Eagle. That is my deduction — not necessarily correct, how-
ever.
Mr. Gardner. That is what you understood him to be? You did
not understand him to be by profession a labor organizer represent-
ing employees, but rather somebody representing the company. That
is what I want to get at.
Mr. Eagle. No; I did not give the matter any great depth of
thought.
Mr. Danforth. When did you get this list for your paper?
Mr. Eagle. The paper got it, I should say, a year and a half ago ;
maybe a little more than that.
Mr. Danforth. In 1910?
Mr. Eagle. Possibly.
. Mr. Young. The strange thing about this is that there is no chron-
ological order about it.
Mr. Bartlett. Is this in the shape now it was when you got it?
Mr. Eagle. That is the copy I received. It is somewhat more
mutilated than it was then.
Mr. Bartlett. I mean as to arrangement.
Mr. Eagle. I believe so. The leaves are loose, however; they
might have gotten mixed up.
The Chairman. I see a man by the name of Pat McCoy, against
whose name is marked, " Dissatisfied with wages." Do you know
anything about him ?
■ Mr. Eagle. No, sir.
Mr. Gardner. That is the reason he left the employ ; not that he
was discharged, Mr. Chairman.
Mr. Young. The list does not show.
The Chairman. That is what is marked against him.
Mr. Gardner. Is there anything to show he was discharged, or
that he left the employment?
The Chairman. No. I see another case of a man by the name of
David Morrison, " Dissatisfied with wages." Do you know anything
about him?
Mr. Eagle. No, sir.
The Chairman. John Mulcahey, American Steel Wire Co., 1901,
" For belonging to Machinists' Union."
Mr. Gardner. What date is that?
The Chairman. 1901.
Mr. Danforth. I suggest there is no use of reading this over. It
was all before the corporation was organized.
The Chairman. There are some dates later.
Mr. Danforth. But what you are reading is prior to the date of
the organization of the corporation.
Mr. Gardner. There are a vast number the chairman is not read-
ing. What are they all for?
The Chairman. They are for cause — for labor agitators.
Mr. Young. Did you read out any of those labor agitators ?
The Chairman. I have not read any. It was the odd ones that I
was reading. Most of them are for cause. Some of them have all
sorts of entries here which are interesting.
uiMXJiu oxjiiiio sxaau uOEPOEATION. 3427
Mr. Young. Where a man is noted as "dissatisfied with wages"
would rather give the impression he left himself.
Mr. E.EED. While the chairman is looking for some more peculiar
ones I would like to say to Mr. Gardner that I can not see any offense,
even if this list was circulated among the subsidiary companies, about
which I know nothing.
Mr. Gaednee. I do not know anything about your law, but it was
a question which arose in my mind — I quite admit the right of any
company to Iceep its own black list — to say, " I don't want this man "
or " I don't want that man."
Now, if it is circulated among other companies it seems to me to
be in the nature of conspiracy when it is circulated amongst other
companies with whom' you are — I won't say allied — ^but when it is
circulated amongst a number of other subsidiaries of the same cor-
poration.
While I do not know that there is anything that has hitherto been
considered improper about it, the question naturally suggests itself
to a man's mind whether the circumstances would have been altered
as to what is and what is not proper when you have got the whole
or the employment of 50 per cent of labor under one head. Do you
see, Mr. Keed?
Mr. Reed. I catch your idea.
Mr. Gaedner. It is a question which has been working in my mind
since this thing came up the other day, as to whether, granting that
Mr. Seldes was right in his evidence and that this circulated entirely
amongst the subsidiaries, that did constitute something that needed
correction.
Mr. Eeed. I see.
Mr. Gaednee. Irrespective of whether it was illegal or not at
the present time?
Mr. Reed. All I wanted to call your attention to in that connection
was the fact that it seems to me — not that there is anything unfair in
your suggestion or in your thought — unfair to regard the Steel Cor-
poration as a unit when it is convenient to its accusers to do that and
to regard it as a group of different entities when it makes an offense.
Mr. Gaednee. That is perfectly true. I tried to throw aside all
this winding up of the Steel Corporation and tried in my own mind
to clear myself as to the internal verities of a corporation, not as to
whether it is legal or illegal, but as to whether it is a thing which is
in the internal nature of the /thing right or whether it is wrong.
Mr. Reed. Of course, I do not want to accuse Mr. Morgan — who-
ever he is — of producing something that is not genuine. I do not
know that the thing is genuine or not; but I am told that all the
paper used by the Carnegie Co. bears its watermark, and that list
does not. Whether there is anything in that or not I do not know.
Mr. Gaednee. Do you know whether it bore its watermark back in
1904 and 1905?
Mr. Reed. That has been there practically a great many years I
am told ; that it was the custom for a great many years, even before
the corporation was formed.
Mr. Gaednee. Still, if they had a list like that circulating it is
probable they would not use the watermark on that particular
document.
3428 ' UNITED STATES STEEL. COBPOBATION.
Mr. Danforth. But that does not prove anything. Assuming that
Morgan made the copy, he could make it on paper he bought from
<Tny stationery shop if he was trying to sell the copy.
The Chaieman. I see here in 1902 a great many of men discharged
for cause belonging to the National Steel Co., the American Steel &
Hoop Co., the American Steel Wire Co., the National Tube Co.
In 1903 the National Tube Co., the American Steel Wire Co., the
Carnegie Steel Co., the South Sharon. It seems this list pertains
practically to all the subsidiaries of the United States Steel Cor-
poration.
Mr. Young. You do not find any outside men, do you ?
The Chairman. I will not be positive about that. Here is the
L. U. M. I don't know what company that is.'
Mr. Reed. I presume that stands for the Lower Union Mills, of the
Carnegie Co.
The Chairman. N. S. Co. That is the National Steel Co.; the
National Tube Co. ; the Bellaire. Do you know if that is a subsidiary?
Mr. Reed. That is the Bellaire Works of the Carnegie Co.
The Chairman. I do not see any company that is not a subsidiary.
It appears this list is made up of men who worked in the various sub-
sidiaries of the United States Steel Corporation.
Mr. Gardner. Of course it does not appear what purpose that
was put to, Mr. Chairman.
Mr. Bartlett. What are we going to do with it now that we have
got it?
Mr. Danforth. Find Morgan and return it to him.
The Chairman. There are a great number of men marked as labor
agitators.
Have you any objection to having this list printed in the record?
Mr. Eagle. I would not like to have it go out of my possession.
The Chairman. Would you have any objection to having it
printed in the hearings?
Mr. Reed. I have, until it is proven to come from the Carne-
gie Co.
The Chairman. It does no do anybody any harm if there is no
harm in it.
Mr. Gardner. What you are doing now, in reading just a few of
the names, might not possibly be doing justice
The Chairman. Read all of it.
Mr. Gardner. I could not read the wfeole of it. Here are names
of thousands of workmen. You have picked out a few cases.
The Chairman. Most of them are for cause — 90 per cent of them.
Mr. Gardner. I should think it was nearer 95 per cent.
Mr. Young. The trouble, in my mind, is just what it was the
other day. We have traced it back just one step. The gentleman
received it from a man named Morgan, with whom he had no special
acquaintance. Morgan claimed it was a certain thing. If it is to
go in at all it ought to be shown it has some particular relation to
the steel corporation or some of its subsidiaries. It ought to be
shown it was a paper kept by them. Then there would be an oppor-
tunity to show what they used it for.
It seems to me to be a list of men most of whom apparently had
been discharged for cause, and some would seem to be men who had
left of their own accord to go elsewhere.
UNITED STATES STEEL COEPOEATION. 342&
Mr. Reed. And it is dubbed a black list by a man who was tiding
to sell it for money to a newspaper. I have forgotten most of the
rules of evidence since I came to Washington, but it does not seem
to me it is competent or .relevant.
Mr. Young. I do not think that ought to go in.
The Chairman. What sort of a looking man was Morgan? I
want to find him. I will get to the bottom of this thing if it takes
six months.
Mr. Eagle. He was tall, rather heavy set. My recollection of
him is somewhat hazy. It has been some time ago.
Mr. Baetlett. Could Mr. Moore tell anything more about it than
you can?
Mr. Eagle. I think not.
Mr. Baetlett. Where is Mr. Moore ?
Mr. Eagle. When I left him he was in Pittsburgh.
Mr. Baetlett. He resides in Pittsburgh ?
Mr. Eagle. Yes.
The Chaieman. What aged man was Morgan ?
Mr. Eagle. Oh, I should say about 40.
The Chaieman. What time was it you last had a conversation
with him on the subject ?
Mr. Eagle. Approximately a year and a half ago.
The Chaieman. He was then living in Pittsburgh?
Mr. Eagle. Yes.
Mr. Baetlett. Who else, besides you and Mr. Moore, had a con-
versation with this man at the time he exhibited this book and said
this list you have here was a copy of it?
Mr. Eagle. Mr. Emge, the managing editor.
Mr. Baetlett. Where does he live ?
Mr. Eagle. He is in Pittsburgh also.
Mr. Baetlett. Is he there now ?
Mr. Eagle. Yes.
Mr. Baetlett. Do you think he would have any more recollection
of it than you ?
Mr. Eagle. I am certain he would not.
Mr. Baetlett. Have you discussed the matter with Mr. Emge and
Mr. Moore since you got the subpoena — any time recently ?
Mr. Eagle. Me?
Mr. Baetlett. Yes, you.
Mr. Eagle. I have, yes; but they did not know anything more
about it than I do.
Mr. Baetlett. That is the reason you say their recollection- is no
clearer or more definite than yours ?
Mr. Eagle. Yes.
Mr. Baetlett. According to your interview with them?
Mr. Eagle. Yes. We were all very loathe to have the matter
come out in this way. I wish to state that for the paper.
Mr. Gaednee. In your opinion, is that book in existence to-day ?
Mr. Eagle. I presume it is. He considered it valuable. I do not
think he would destroy it.
Mr. Gaednee. He must have gone to other papers besides you, or
to other syndicates. I believe you said the proposition was to sell it
to a syndicate?
3430 UNITED STATES STEEL OOEPOEATION.
Mr. Eagle. I understood so.
Mr. Gaednee. Did you refer that question to the other members
of the syndicate?
Mr. Eagle. There is no syndicate.
Mr. Gaednee. I thought you said he proposed to sell it for $5,000
to a syndicate of newspapers?
Mr. Eagle. What I said was : He wanted to syndicate it. That is
a newspaper expression, meaning to contract with different papers
to take this for a certain sum — probably not for $5,000 each.
The Chaieman. Each paper would contribute its proportionate
part?
Mr. Eagle. Yes.
Mr. Babtlett. Like these weekly plate sheets — magazine articles!
Mr. Eagle. Yes, sir ; that is the idea.
Mr. Gaednee. Have you heard of his approaching any other
paper ?
Mr. Eagle. No ; I have not heard directly.
Mr. Gaednee. Did he express any intention of approaching any
other paper?
Mr. Eagle. He may have ; but I did not overhear it.
Mr. Babtlett. Did he say whether he had offered it to somebody
else, or somebody else had offered him a price for it?
Mr. Eagle. He did not say so to me, or in my hearing.
Mr. Baetlett. He thought it was a good sensational story that
the papers would like to have!
Mr. Eagle. That is what he considered it.
The Chaieman. Did he say from whence he had secured this
book — from what company he had gotten it?
Mr. Eagle. My impression was — although he may not have said
it — that it was from the Carnegie Steel Co.
The Chaieman. He had worked for the Carnegie Steel Co.?
Mr. Eagle. Yes.
The Chaieman. And most of the names that are mentioned here
are names of employees of the Carnegie Steel Co. ?
Mr. Eeed. If the witness knows.
The Chaieman. Do you know?
Mr. Eagle. No ; I do not know.
The Chaieman. A good many of them I read were.
Mr. Reed. A good many of the initials on the list appear td be
the initials of Carnegie Co. mills.
Mr. Baetlett. Well, let us decide about this matter.
^ The Chaieman. I am perfectly willing to have the committee de-
cide it. If any member of the committee objects, I would not insist
on having it printed in the record. If the witness wants to take the
list back, I could have a copy made of it.
Mr. Danfoeth. In the absence of objection, would the chairman
care to have it printed in the record ?
The Chairman. I would.
Mr. Danfoeth. As material evidence in connection with the in-
quiry we have been authorized to make ?
The Chairman. Yes.
(Informal discussion followed, which the stenographer was di-
rected not to report.)
UNITED STATES STEEL, COEPOitATION. 3431
»
Mr. Eagle. I think it is not fair to the paper to let it come out
It was turned over to us for one specific purpose. We did not avail
ourselves of the opportunity and purchase it. You force me to come
down here and testify and break one of the most sacred laws of
journalism.
The Chaieman. If you object, of course I will not insist on its
being printed. The chairman wants to be agreeable to all parties
concerned. Did you believe it was not an authentic list?
Mr. Eagle. In the newspaper business we do not believe anything
until we investigate.
The Chairman. You are excused, Mr. Eagle. We are very much
obliged to you.
The committee wiU stand adjourned, to meet again at the call of
the Chair.
Thereupon, at 1.30 o'clock p. m., the committee adjourned, subject
to the call of the Chair.
United States Steel and Carnegie pension fund.
Trustees. — Frank D. Adams, Duluth, Minn.; Raynal C. Boiling, New York,
N. Y. ; William B. Dickson, New York, N. Y. ; Robert A. Franks, New York,
N. Y. ; Elbert H. Gary, New York, N. Y. ; James H. Hoyt, Cleveland, Ohio;
Kempker K. Knapp, Chicago, 111.; George W. Perkins, New York, N. Y.;
James H. Reed, Pittsburgh, Pa.; Andrew Squire, Cleveland, Ohio; Charles L.
Taylor, Pittsburgh, Pa. ; Hampden B. Tener, New York, N. Y.
Finance committee. — Elbert H. Gary (chairman), Robert A. Franks, George
W. Perkins, James H. Reed, Hampden B. Tener.
Pension committee. — Raynal 0. Boiling (chairman), Elbert H. Gary, James
H. :^eed, Charles L. Taylor.
General executive officers. — Elbert H. Gary, chairman, New York, N. Y. ;
Charles L. Taylor, vice chairman, Pittsburgh, Pa. ; Robert A. Franks, treasurer,
New York, N. Y. ; Raynal C. Boiling, secretary, New York, N. Y.
J. B. Brskine, manager; J. H. Wood, assistant manager, Oliver Building,
Pittsburgh, Pa.
The United States Steel and Carnegie pension fund was established in the
year 1910 by the joint action of the United States Steel Corporation and
Andrew Carnegie. Its purpose is the payment to employees of old-age pen-
sions from the Income of the fund. For this purpose the United States Steel
Corporation provided $8,000,000, which, with the Carnegie relief fund of
14,000,000, created by Andrew Carnegie on March 12, 1901, makes up a joint
fund of $12,000,000. This pension fund is administered by a board of 12
trustees, through a manager appointed by the board with such powers and
duties as may be given him by the board. The pension rules are established by
resolution of the board of trustees.
Pension Rules.
who may obtain pensions.
1. Employees of the United States Steel Corporation or of any other corpora-
tion a majority of whose capital stock Is owned or controlled by the United
States Steel Corporation, or of the board of trustees of this pension fund may
obtain pensions under the following conditions :
FiBST. — Pensions iy compulsory retirement.
2. All men who have been 20 years or longer in the service and have reached
tie age of 70 years shall be retired and pensioned.
3. All women who have been 20 years or longer in the service and have
reached the age of CO years shall be retired and pensioned.
4. At the request of their employing officers persons employed in executive
or administrative positions may be allowed to continue in active service after
reaching the ages mentioned above.
Second. — Pensions hy retirement at request.
5. Any man who has been 20 years or longer in the service and has reached
the age of 60 years may be retired and pensioned either at his own request or
at the request of his employing officer.
6. Any woman who has been 20 years or longer in the service and has reached
the age of 50 years may be retired and pensioned either at her own request or
at the request of her employing officer.
Thibd. — Pensions for permanent incapacity.
I. Any employee who has been 20 years or longer In the service and has
become permanently totally incapacitated through no fault of his or her own
as a result of sickness or injuries received while not on duty may be pensioned
at the discretion of the board of trustees.
AMOUNT or PENSIONS.
8. The monthly pensions to be paid will be made up on the following basis,
subject to the provisions of section 27 :
For each year of service 1 per cent of the average regular monthly pay
received during the last 10 years of service.
Illustration. — ^An employee who has been 25 years In the service and has
received an average regular monthly pay of $60 a month will receive a pension
allowance 6f 25 per cent of $60, or $15 a month.
9. No pension granted shall be more than $100 a mouth or less than $12 a
month.
HOW TO OBTAIN PENSIONS.
TENSIONS BY COMPULSORY RETIREMENT.
10. Employing officers will report to the manager of the fund the name of
every man who has been 20 years or longer in the service and has reached the
age of 70 years, and of every woman who has been 20 years or longer in the
service and has reached the age of 60 years. These reports will be sent to the
president of the company concerned for his approval.
PENSIONS BY RETIREMENT AT REQUEST.
II. Any man who has been 20 years or longer in the service and has reached
the age of 60 years, and any woman who has been 20 years or longer in the
service and has reached the age of 50 years, who wishes to be retired and pen-
sioned, should notify his or her employing officer.
12. Any employing officer who wishes to retire an employee who has reached
the age and has had the length of service fixed for retirement by request must
notify such employee and report to the manager of the fund the request that
such employee be retired and pensioned. These requests, whether from an em-
ployee or an employing officer, will be sent to the president of the company
concerned for his approval.
PENSIONS FOR PERMANENT INCAPACITY.
13. Any employee who has served 20 years and who Is permanently totally
incapacitated through no fault of his or her own, as a result of sickness or in-
juries received while not on duty, may notify his or her employing officer and
apply for a pension. Every such application will be sent by the employing offi-
cer to the president of the company concerned for his approval. In every such
case it must be shown to the satisfaction of the board of trustees by physical
examination that the employee applying for a pension is permanently totally
Incapacitated to earn a livelihood.
UNITED STATES STEEL COEPOBATION. 3433
t
GENEBAL EEGTJLATIONS.
14. Pensions from the fund will be paid only to those employees who havo
given their entire time to the service of corporations included under the provi-
sions of the fund.
15. The acceptance of a pension from the fund shall not bar any former em-
ployee from engaging in other business so long as such other business is not of
the same character as the former employment. No employee receiving a pension
may reenter the service.
16. Length of service shall be reckoned from the date since which the em-
ployee has been continuously in the service to the date when retired, and a
part of a year, if less than a half, shall not be counted ; if more than a half, it
shall be counted as a full year.
17. Leave of absence, suspension, temporary lay-off on account of reduction
in force, or disability shall not be considered as breaks in the continuity of
service, and time thus lost shall not be deducted in reckoning the length of
service.
18. Dismissal or voluntarily leaving the service, followed by reinstatement
within two years, shall not be considered as breaks in the continuity of service,
but the time thus lost shall be deducted in reckoning the length of service.
19. The board of trustees shall fix the date in each case, upon which the pen-
sions shall begin.
20. Pensions shall be paid monthly at the close of each month, unless revoked
by the board, and shall terminate with payment for the month succeeding that
in which the death of the employee occurs.
21. Whenever the terms " service " and " in the service " are used in these
rules they mean employment by the United States Steel Corporation, by one or
more corporations a majority of whose stock is owned or controlled by the United
States Steel Corporation, by their predecessors, or by the board of trustees of
this fund.
22. Pensions may be withheld or terminated in case of misconduct on the
part of the beneficiaries or for other cause sufficient in the judgment of the
board of trustees to warrant such action.
23. In order that direct personal relations with retired employees may be
preserved and that such employees may continue to enjoy the benefits of pen-
sions granted them, no assignment of pensions will be permitted or recognized
under any circumstances; neither shall pensions be subject to attachment or
other legal process for debts of the beneficiaries.
24. This pension plan is a purely voluntary provision for the benefit of em-
ployees superannuated or totally incapacitated after long and faithful service;
and constitutes no contract and confers no legal rights upon any employee.
25. The manager of the fund shall decide all questions arising out of the
administration of the fund and relating to employees, subject to a right of ap-
peal to the board of trustees within 30 days after notice to the persons inter-
ested of the manager's decision. The action of the board of trustees or of any
committee designated by the board to hear such appeals shall be final and
conclusive.
26. Neither the creation of this fund nor any other action at any time taken
by any corporation included under the provisions of the fund or by the board
of trustees shall give to any employee a right to be retained in the service, and
all employees remain subject to discharge to the same extent as if this pension
fund had never been created.
27. Whenever it may be found that the basis named for pensions shall create
total demands in excess of the annual income increased by any surplus deemed
applicable by the board of trustees, a new basis may be adopted reducing the
pensions theretofore or thereafter granted so as to bring the total expenditures
within the limitations fixed by the. board of trustees. Notice of such new basis
shall be given before the beginning of the year in which it may be decided to
put the same Into effect. These pension rules may be changed by the board of
trustees at its discretion.
28. An annual report, giving an account of the fund and Its administration,
win be made as soon after the first of each year as practicable, and copies of
such report will be posted at all mills, mines, railroads, shops, and other works
and published In such newspapers as may be designated by the board of
t m st 66 s
By order of the board of trustees, these rules for the administration of this
fund shall take effect on January 1, 1911, and shall apply to those who are in
the service on and after that date.
3434 rXITED states ■rj.r.r... v.,..iu.v,i.^-..iv^^>.
[The Sarrey, November 4, 1911.1
The human side of large outputs — Sffef and •^■cl tcorken in #i> Amerinm
n. — ^niu:sois : boosti:sg for satxtt.
[Jolm A. FitL-r. member staff tl90T-S>. Pittsburgh Snrv^v.]
The first steel rail made in America was rolled at the works of the North
CaUcago RoUing Mill Co. Oi.rstripped lor a geneKUion thereafter in steel out-
put, as it had been in iron, Chioago is to-day forgiag to the front as one of the
greatest sted-prodncing centers in America. On the north is ch# American Steel
& Wire Co.'s mill at Vank^an: In South Chicago are the plants of several
minor concerns, besides the immense works of the ll'inois Sted Co.: at the
sontli wtst is Joliet. with plants of importance; on the south shore of Lake
MlchiiT-.in Is Indiana Hrrbor. with a plant of the Inland Steel Co.. an independ-
ent, and. finally. Gary itselt The supremacy in steel will not pass from Pitts-
burgh to Chicago to-morrow, nor the day after, but no one can blink the fact
that already this section is producing an enornior.s tonnage. Not iess than
30.0W men are employed in the reduction of ore and in making, working, and
fabricating steel.
A good m;iny reasons have been given for the stride forward taken in the j^ast
10 years by the lower Lake Michigan steel district. One is the nearness to the
Miiines.na ore fields. Another is the Minois coal mines. Neither of these
seem adequate, for ore can be transported with almost equal cheapness any-
where on the Great Lakes, and there is no cial so ad:u ted to coking as that
from the ConnellsviUe district, near Pittsburgti. The real reason would seem
to be the development of the West, where new raUrcads are being buUt. cities
are growing, skyscrapers going up. There is need "f a mid-westem mano&e-
turing and distributing point commensurate with the demand for steel, and the
Chicago plants have grown in answer to that need, just as there is prospect
to-day of the development of Dulnth as a manufacturing and distributing point
still farther to the north and west.
In Chicago the biggest and most important manufacturer of steel is the Illi-
nois Steel Co.. and it is not only the biggest in Chicago, but the biggest in the
West. With plants at Milwaukee. Joliet, Chicago, and Gary, it employs in
normal times about 25.000 men. It was the Illinois Steel Co. that built the
Gary steel plant, with its own men. and now that it is built the Illinois Sted
Co. is operating it.^
The south works of the Illinois Steel Co. employed 6,000 men in 1900. before
it was taken over bv the United States Steel Corporation. To-day, when the
plant is on full timeC it euiploys 10,000 to 11,000. Since 1900, 3 blast furnaces
have been added to the S then in blast, a second opai-hearth department, mth
14 furnaces, has been constructed, more than doabling the capacity for open-
hearth steel. There have been added 2 blooming mills, 2 structural nulls, and
a universal plate mill.
It is a great plant, extending for 2 nules along the shore of the lake — <me of
the greatest plants in the world — but many South Chicago people think that it
might have been very much larger. The town and plant at Gary would never
have been built, they declare, if South Chicago had been rightfully treated.
•• The big plant would hare been built here instead of at Gary." a bluff old
South Chicago citizen explained to me, " if it hadn't been for a damn little cuss
of a public works commissioner, under a Democratic mayor we had, named
Dimne. * * • This fellow was a Socialist, and he thought he was bigger
than the people of Chicago."
The commissioner in question was Joseph MediU Patterson, formeiif one of
the editors of the Chicago Tribune, a successful playwright and author of
several well-known books. His offense consisted in trying to enforce the law.
It seems that the South Chicago plant, being surrounded on three sides bj
property not owned by the company, could e5i)and only in one direction — into
the laka So for many years slag was dumped into the lake for filling and new
land slowly made. There was no legal Siincticn for such appropriation of the
lake bottom, and when, during Mayor Dunne's administration, the company
wished to start new construction. Commissioner Patterson refused a permit and
1 The Indiana Steel Co. is the company that owns the Gary plant — on paper — and tl»
Illinois StevI Co. is the lessee ; but both companies occupy the same offices In Chicago tnd
have the same oiScers.
l'Nl'l'l';i) S'rATl'*,.S STKKI, I'OHI'OHATKIN. 3486
stiirtiMl Bult to recover (lie liiiul iili'eiul.v built upon lio.voiul tlip old sliore line.
TlllH Htoppeil expansion I'or n time, and llie (liiiy pliinl was sinrled nl'lerwiirds;
bnl Olio UnB only to loolc nt. tiie (iiiiy pliiiit, extending '2 m- ;i miles uIoiik the liike
mid In from tin? shore for n wile, to reiill/.(> liow lnipos,Mllile l( wonkl have been
lo bnllil 80 Kreat an huhiBtrlal eshiblislunout iit Soulli Clileajjo ou made laud.
'IMiero l8 uo iieod to r(>eiird aRaln the tnjuiendoiiH eiiglneeilnK feiits necessary
to the erejitlon of tbo (iary plant In liKKt and after. The story has been told
often enouKli of liow tlio trnclts of a bait dozen niUroads wore pleluxl up and
llnng u few miles lo (lie sonlli, of bow a river was moved, bow bills and trees
were oUuilniiltHl and o liarbor was dredwd lit to accommodate the great ore
boats, and. Ilnally, bow a elly was built, paved and sewered aud lljibted, where
tUore bad been the day before but a wasle of sand dunes.
'IMiere wore (i.OOd men In tb<' plant wlieii 1 vislled II last winter. I would not
have guosBod lluit there were a tlilrd of (bat number, the plant and the mu-
eblnery are so hi); aud overpowerinR. The enormous ore nnloaders, skelotonllke,
uneanny, where 'J men do (lie work that TiO used to do; the blast furnaces,
amouK the bigif'sl In (be eountry, so automatle that the labor force Is 25 per
eont loss tlinu (be averago for blast furnaces; the spaciousness of tlie great
sheds, wltli (heir high roofs— all tend to glv(> Iniprcssiveness to Uie plant.
To tills plant has bwii gaUierod an army of men. Skilled and unskilled tliey
have come: native and alien, 'I'euton, (.loll, aud Slav; Kngllsh-speaklug men
and men who speak strange (ongues; men wlio have fed furnaces In Pittsburgh,
who have pulled levers at Ijackawttuua, who have riveted cars nt Johnstown,
pulled scrap from the shears nt Pueblo, or bossinl negro gangs In Blrmlngliani.
.\nd men have come, too, from farms and bumlets of Bohemia and Hungary,
Sorvla and Miuileiu'gro conu* to a new world, to new work, to machines and
wonders of which (hey ne\i>r before bad dn>anu'd -to a now opportunity.
Thus a new plant and n now commuuKy has been fm-mwl, without tradition,
without old scores, with no past, ouly a future. There was here uo Irish tur-
bulence at the blast furniices; (here were no stuhhoni Welsh puddlers to reckon-
with. The stolid Slavs are taking care of the giant stacks aud the puddling
furnaces are no more.
tSar.v is probably dostlni>d to be .«roaler lu (he annals of steel making than
South (.blcago, lunause (he construction engineers had before them the mistakes
v)f years In other plants. What South Oblcago has found was wrong and has
had to patch up (!ary has avoided through couslructlon. The straight hauls
at Gary, the Iron ore starting at one cud of the plant aud the Huished material
coming out at the other, (he lack of congesdon the broad-gauge (rocks Instead
of the " dlidvcys," (he powerful euglues, the enoruious cranes-all are suggestive
of ivonoiuy and speed.
"If," said an oillda! of the plant, "we do not make steel more cheaply
here nt Qory than anywhere else In .\raerlca, the building of the plant will noi
hnve lUHMl ,1us(ltl(Hl."
Gary's tlvoyetir story Is n thrilling one. South Chicago's ndvanco has been
les.-5 excKlug lnH'ause, like Jtonie. It was not built In ft day. Steel was tir.sr
made at the South Works In ISS:;. aud the growth since then hns bivn steady
aud nonspectacnlar. Yet. without the leaps and bounds in growth which have
challengiHl the nttoutlon of the world at tJary, the South Chicago plant has
develoiwd nutll amazing doiHls aiv matters of dally occ\irrence. l<^rom 11 blast
furnaci>s -l,5(H) tons of iroi\ are tapptnl every '21 hours, more than 400 tons to
each t\n-t\ace. The liessomor and open-hearth deparliuonts togiHlier pivdnce
340 ti>us of steel every hour, while the rail ndll turns out every day -JO miles of
SO-ptnmd vails, enongb for 20 ndles of track. It Is not In Pittsburgh nloue
that big things are done.
The growth of a great plant, the sudden sprlugtoff Into being of another, and
the mtvhanlcnl eltlcioucy of both ai*e very Impressive. Hut of greater siguifl-
eanee is (be foj-ce that gives eO'tvllveuess to both plant and machine — numage-
rlnl elllelenc,\-. .\ group of men of unusual capacity for organlsintlon nnd lead
orship are directing tbo developnu>nt and operation of these remarkable plants,
nud this Is u\ore Important than any n\aclili\ery, howexfr automatic and useful.
It Is tills liNidersblp and the elllcieucy of compact orgaulBntiou that is the
grtNrtt thing about the Illinois Sleel Co., for It has to its credit an achievement
uvore Important than the Installing of new ei\gines or beating the tonnage
roctwl of the world or building a city overuigbi. it has to Us credit n nwrd
of hunmn coi\servatlou. Tt has not made its plants absolutely s)\fe, Thevo
will alwiys be danger in making steel. Hut It Is playing n Unidlng part 1n
I70i8- No. M— V,: J
3436 UNITED STATES STEEL COEPOEATION.
putting a stop to that mad waste of life and limb that four years back made
the steel industry a hell.
The Illinois Steel Co. had had a safety department at its South Works for a
good many years prior to 1908. For a good many years men had reported on
unsafe conditions and recommended improvements. But, nevertheless, for
many years the accident and death roll of the plant was a shocking revela-
tion of the feebleness of human economy in plant operation. In 19Q6, 46 men
lost their lives in the South Chicago mill. To quote William Hard :'
" Twelve of them were killed in the neighborhood of blast furnaces. One was
hurled out of life by a stick of dynamite. Three of them were electrocuted.
Three of them were killed by falls from high places. Four of them were struck
on their heads by falling objects. Four of them were burned to death by hot
metal in the Bessemer converter department. Three of them were crushed to
death. One was sufEocated by the gas from a gas producer. One of them was
thrown from an ore bridge by a high wind. One of them was hit by a red-hot
rail. One of them was scorched to death by slag. And 10 of them were killed
by railroad cars or by railroad locomotives."
Hard published his article in November, 1907. The next spring a new policy
was Inaugurated by the Illinois Co. A closer organization was effected and aU
of the plants brought into harmony in an effective, determined campaign for
safety. In 1910, 14 men instead of 16 lost their lives at the South Works, in
this new campaign a spirit of enthusiasm, effective and unique, was set on
foot. A central committee of safety was formed, consisting to-day of the safety
inspector and the assistant general superintendent from each plant, an official
from the statistical department who acts as secretary, and a representative of
the legal department in charge of personal-injury matters. The general attor-
ney of the company acts as chairman of the committee.
In each plant two classes of safety committees were formed, workmen's com-
mittees and permanent committees. Bach of the larger plants is divided into
three or four divisions and in each division three workmen are appointed to
serve two months and look out for the safety of the division. They spend one
day each two weeks looking for dangerous places and talking with the men hi
order to get suggestions as to safety. The permanent committees are made up
of groups of foremen. There is a permanent committee for each department
which inspects the department once each month to see that safety devices have
been installed and to Investigate accidents.
' The scope and effectiveness of the work of this safety organization is notable.
The inspections are far more searching than the factory Inspection work of any
of our State governments. The workmen's committees are followed up by the
permanent committees and both by the chief inspector, and his work in turn is
checked by the chairman and secretary of the central safety committee. Spe-
cial workmen's committees are appointed now and then to inspect other plants
for new ideas, and in each department skilled experts, not members of the
committee, make inspections from time to time.
The central committee Is working out standard safety devices and rules and
no new machinery is installed unless approved by the safety experts. No blue
print is allowed to leave the drafting room until it has been checked for safety.
Foremen are examined from time to time on their knowledge of safety rules and
a foreman who persistently fails to familiarize himself with them is discharged
sr transferred.
With Chairman Campbell, of the central safety committee of the Illinois
Co., I went through the South Chicago and Gary plants, and I was everywhere
impressed with the spirit that prevails among superintendents, foremen, and men
of resistance to unsafe methods. It Is a new spirit and one destined to ac-
complish Incalculable good- By ingenious methods the spirit is fostered and
made to grow. The slogan Is " Boost for safety," and everybody boosts. It is
a contagious thing. One of the safety men said to me, " Why, I can't pass an
obstruction on the sidewalk any more. I've got to stop and throw it off."
This new, organized, and resourceful attack upon the danger zones of pro-
duction is not unique with the Illinois Steel Co. Similar work is done by the
other subsidiary companies of the United States Steel Corporation. With the
formation of a central safety committee In April, 1908, made up of safety men
from these different managements, a concerted movement was Inaugurated
which has been carried a stage further the past year in the transfer of the
safety expert of the National Tube Co. to headquarters, to carry on clearing-
1 Making Steel and Killing Men. Everybody's Magazine, November, 1907.
UNITED STATES STEEL COEPOBATION. 3437
house methods between the different offices. Apart from this general inter-
change, each company, however, develops its safety work along individual
lines ; and it is the team play of its central committee that gives distinction to
the work of the Illinois Co.
Workmen are encouraged to make suggestions, and some of the most valu-
able ideas come from them. Safety inventions are paid for. At South Chi-
cago when I visited the plant a man in the pattern shop had just perfected a
circular-saw guard which was the pride of the shop. Another had made an im-
proved belt shifter. And the thing that impressed me was that these inventions
were commended as highly as if they had been designed to boost output instead
of safety.
Bulletin boards are scattered through the mills, and every two weeks the de-
partments that get into the "booster class" — those that have kept the acci-
dent rate down to a minimum — are posted. The boards are used in various ways
to inculcate habits of caution. The day before I visited the South Chicago plant
a man's eye had been saved from a metal splash by the goggles he wore. The
metal-encrusted goggles were immediately photographed and the photograph
placed on the bulletin boards as an example to the workmen.
I attended a meeting of the central safety committee and in it I think I dis-
covered the secret of the remarkable work that has been accomplished — and
that is going on — that has reduced the number of fatalities in the South Cticago
plant from 46 in 1906 to 14 in 1910. At first I thought it was because the
chief safety inspectors are not operating men, and have no responsibility as to
output. But in the committee I found the superintendents — the operating men —
as eager for safety as were the inspectors. Perhaps it is thought that spend-
ing money for safety will save money for the company in the long run. I think
it will. But that was not what the safety committee talked about that morn-
ing. A man in one of the plants had had the end of a finger taken off by a piece
of moving machinery that had a hole in it just the size of his finger. He had
put his finge* into that hole. The discussion brought out the fact that the same
hole was to be found on similar machines in all the plants. The committee de-
cided that these holes must be covered or filled. Another man had slipped and
fallen as he walked, inside the plant, to his work. It was found that ashes had
been sprinkled in slippery places, but it was ordered that this be done more
carefully.
From accidents the committee turned to a consideration of recommendations
on safety devices, from foremen's committees and from workmen's committees.
None of these were revolutionary. They were detailed, accompanied by designs,
and involved simple changes in method or the installation of minor safety de-
vices. They were all considered, some were passed upon, and others were put
over until the next meeting. It was not apparent to me that all of this delibera-
tion would work the financial advancement of the company. There was some-
thing in that meeting that can be explained only on the ground of humanitarian-
ism. It impressed me strongly and gave me more faith in my fellow men.
All this spells achievement of a high order. The quiet growth of a plant
30 years old, the building of a new one, the devising of a new scheme for
saving men's lives, the building of a city ; It is all a story of things done, things
that only strong men can do. And such achievement inevitably brings two other
factors into play, responsibility and opportunity. Of the former I shall say
little, for it is self-evident. The latter is too tremendous for full discussion, but
I can sketch in the barest outline some of the things that are comprehended to-
day in the unparalleled opportunity now open to the Illinois Steel Co.
The most obvious opportunity, three years ago, was to set a new standard
for safety. Now an even larger opportunity is beginning to present itself.
Some of the members of the safety committee have begun to think that if
humanity and business alike dictate that men's lives and limbs ought to be
protected against the danger of accident, by the same token men's bodies should
be protected against disease.
That phase of disease most closely akin to the accident problem is infection ;
and nowhere else as in the absolute and prompt control which the hospital corps
of these larger plants have over the treatment of flesh wounds, major and
minor, is there such an opportunity for the reduction of infection to a minimum.
This is a field in which the Carnegie Steel Co. has made notable advances
among its scattered plants in the Pittsburgh district, where a larger administra-
tive problem is of course Involved. There is a hospital at South Cliicago, where
the injured men are cared for. It is an old one, and while it does effective
service It does not represent the best that could be desired. But at Gary, where
3438 UXITED STATES STEEL COEPOKATION.
the Illinois Co. could build everything new, there is one of the finest hospitals in
the United States. It is a plant such as few cities in America have supplied for
themselves.
The central safety committee had as a topic for discussion at a recent meeting
Ihe question of a sanitary water supply and sanitary drinking cups. At present
drinking water is brought into the mills in ordinary wooden pails and poured
into barrels. A cake of Ice is kept in each barrel, and when a man wants a
drink he takes the cover ofC and dips up the water with a tin cup. The next man
nses the same tin cup, although venereal disease is known to be prevalent among
certain classes in the mills. The Chicago company could well afford to follow
the example of the National Tube Co., which is installing in its plants a cir-
culatory, ammonia-cooled water system, with fountain drinking cups. For
many years the steel companies have had gas washers connected with their
Wast furnaces to remove dust from the gas before it enters the stoves. This
sanitary drinking-water system will afford equal protection to men.
After this the safety committee might spend some very profitable meetings
discussing heat. At South Chicago there are tubes delivering cool air to men in
some of the hottest positions. At Gary high roofs have done much to improve
\ entilation. But it has not yet become possible to make steel without subject-
ing mpTi to great heat. Workmen go with open pores and clothes wet through
Avlth sweat out from the mills into the cold winter air. Such a radical change
in temperature, day after day. Is extremely dangerous, and rheumatism and
bronchial and pulmonary diseases are common in steel-mill communities.
Shower baths and a change of clothing before leaving the mill would help to
prepare the men for the shock of contact with the cold air. At Gary showers
were installed at the open-hearth furnaces, but the men did not use them, so they
were taken out. South Chicago had the same experience at the open-hearth
furnaces, but the showers in the Bessemer department have been and are used
by the men. There mny be a significance in the fact that the Bessemer men
have an 8-honr day while the open-hearth men work 12 hours. Perhaps the lat-
ter feel that so little of the day is left when the end of a turn comes that they
want to get out as fast as possible and get a grip on the time that remains and
is their own. Be that as it may, the National Tube Co. has not been deterred
from installing shower baths by the fact that the men do not use them as might
be hoped. Showers have been installed in many departments In their plant at
McKeesport, and are eventually to be installed In all departments in all plants.
An official of that company remarked to me : " It is not our fault if the men
don't use the baths, but it is our fault if the baths are not there to be used, and
if they are there the men will learn after awhile to use them." The Tennessee
Coal, Iron & Railroad Co., at Birmingham, is also Installing baths in all de-
partments.
The report made by the Illinois Commission on Occupational Diseases last
January contained a section on carbon-monoxide poisoning. The reports state
that on one day, October l.'j, 1910, 28 men were overcome by carbon-monoxide
gas In one blast-furnace plant. This was conceded to be an unusually large
number, but the fact was ascertained that among 900 men employed in the blast
furnaces studied there have been, in the last 4 years, 13 fatal cases of gassing,
and that there have been averages of 6-5 severe cases and 216 mild cases each
year. These were the cases actually found. The report adds that the " real
liumber occurring would be much higher, since mild cases are never recorded
and are often forgotten." In addition to these occurrences at the blast furnaces,
it was found that other danger points are the boiler houses, gas engines, and
the open-hearth furnaces.
One Immediate and direct danger was found to be connected with gassing—
that of falling from a height or into molten metal when overcome. Thfe report
snys, on page 93, " Of 22 men actually gassed and immediately rescued, 3 showed
notable burns and 3 showed bruises, demonstrating that they were deeply and
rapidly narcotized. We cite the case of one worker who was burned almost
to a crisp before being taken out, and of another who fell to his death 25 feet
below. Many other illustrations like these could be given."
The Illinois Steel Co. was commended by the commission for the care it has
taken to prevent, as much as possible, the escape of this gas. But as yet no
method has been found of preventing all escape, and so accidents occur. One
case was found at South' Chicago of an employee of the gas-cleaning house who
was overcome while sitting in a chair.
But the commission was more concerned with the steady recurrence of miW
cases than with the tragic consequences of the severe ones. Men who con-
UNITED STATES STEEL. COEPOEATION. 3439
fiiantly breathe a little carbon-monoxide gas, who are occasionally overcome,
removed to the outer air, and recover and return to work, may well engage the
attention of experts. Two hundred and forty such men were critically examined
by the commission and some startllngly significant facts were discovered. An
excess of red blood corpuscles was foimd in every case. The layman would be
inclined to consider this a favorable condition, but the commission was not pre-
pared to say that it is so.' They desired opportunity for further study. But
other factors of great significance were found. The men exposed to this gas
were submitted to a strength test, and two numerically equal bodies of workmen
not exposed were submitted to the same test.
In every case the former were found to be deficient in muscular power.^
The commission also found that " the majority of the men examined were
below the average, mentally, but 97 -per cent of them stated, that they used
alcoholic liquors, ichile 70 per cent admitted using alcohol in excessive quanti-
ties; ' consequently it becomes very difficult to make deductions as to the exact
part played by O O. Since it is a well-known fact, however, that prolonged
exposure to carbon monoxide may produce a profound impression on the nervous
system, we may regard it as by no means improbable that a part of the sluggish
mentality observed among the steel workers may be due to frequent exposure
to the gas."
The investigators felt less positive about the muscular deficiency noted. It
might be due to the gas, but it might also be due to alcoholism noted above,
to venereal disease, of which a surprising amount was discovered, or to un-
hygienic living. The investigators were medical experts, not social workers.
It was their work to find out physical, not social, causes. So a question at
once presents itself that the commission did not dwell upon. The men not
exposed to gas upon whom strength tests were made were said to be in good
hygienic condition — in a better condition, apparently, than those exposed to the
gas. Why was this the case? Do blast-furnace workers indulge in more vice
and more liquor than others? If so, a condition exists even more serious than
gas poisoning. It may not be wholly irrelevant to mention that blast-furnace
men — the 240 examined by the commission — were men loho toorhed 12 hours a
day, 7 days a week.
It such a remark is not Irrelevant, may we not direct the attention of the
safety committee to hours of labor in general? Hours of labor in the mills of
the Illinois Steel Co. are just about the same as in other mills. At South
Chicago the Bessemer department and rail mill No. 1 are operated on the three-
turn system, and so the men have an 8-hour day. At Gary there are no 8-hour
Jobs. In both plants molders, machinists, pattern makers, and yard laborers
have a 10-hour day. All other departments work 12 hours, and these include
a majority of the employees.
There are some peculiar things and possibly a few mitigating circumstances
about the hours of labor in the mills of the Illinois Steel Co. Rail mill No. 1
at South Chicago runs on the three-shift plan. Rail mill No. 2 in the same plant
operates with two shifts. But rail mill No. 2 makes only light rails. The Gary
rail mill, however, is operated in 12-hour shifts, and it makes heavy rails, just as
rail mill No. 1 at South Chicago does. This peculiarity is also to be noted in
other plants of the Steel Corporation. The Edgar Thomson plant at Braddock,
Pa., works its men who make rails 12 hours a day, while the blooming mill
rollers have 8 hours.
The plate and structural mills at South Chicago are also run on the two-shift
plan, but here enters a mitigating circumstance. There are " spell hands " pro-
vided In these mills, and all of the men holding the more arduous positions are,
the management states, periodically relieved. In fact, there are practically two
men for each position, each working 30 minutes and resting 30 minutes alter-
nately through the day. Thus each man actually works only 6 hours a day,
although he is on duty for 12 hours. There are a good many reasons why it is
socially bad for a man to remain on duty 12 hours a day whether working all
the time or not. He may not have his nose to the grindstone every minute,
1 There Is not unanimity in the medical profession on this point, but a member of the
commission stated that a theory now held is that an excess of red corpuscles may indi-
cate a pathological condition.
' The average tests ran as follows for men of ages from 20 to 40 years : For those
exposed, 117.13 ; for the two groups not exposed, 146.11 and 134.43, respectively ; for
men over 40 the tests for the three groups were, respectively, 94.30, 127.25, and 113.01.
In other words, a man of 30 exposed to carbon-monoxide gas is no better man, and pos-
sibly not as good, as one 50 years old not so exposed.
' Italics are the present writer's.
3440 UNITED STATES STEEL CORPORATION.
but his free time is not leisure ; nor spent amid surroundings where he can find
engagement and refreshment in it. He is no more ofC duty than a football player
waiting for the referee's whistle before resuming play. The same energy and
splendid cooperation that have reduced serious accidents 50 per cent could, I
am sure, find a way to avoid keeping men on the job 12 hours to do 6 hours'
work.
With respect to Sunday work, there is already an intelligent and progressive
policy afoot. The welfare committee of the American Iron & Steel Institute has
recommended a plan for giving one day of rest in seven to all employees in the
continuous 7-day departments. I have received word that this plan has
recently been' adopted by the Illinois Steel Co. for a tentative trial. To grasp
the importance of this change I will describe conditions as they were in Feb-
ruary, 1911. The 11 blast furnaces at South Chicago and the 8 at Gary were
operated just like all other blast furnaces in America — ^24 hours a day for 7
days a week. It took about 1,700 men to operate these furnaces, and most of
them worked 12 hours a day and 7 days a week. There was some Sunday work
in open-hearth furnaces, though it was less than is general among the inde-
pendent companies. In addition, not less than 600 miscellaneous workmen were
required on Sundays for repair work, gas tending, firing boilers, and guarding
property in the two big plants. That made a total of over 2,300 who had either
a considerable amount of work every Sunday or regular 7-day work, who are
now, if I am rightly informed, to be relieved.
I can not believe that a company possessing the wisdom and sense of respon-
sibility manifest in this action will permanently be willing either to favor or
apologize for a 12-hour day. Tet that, so far as I could gather, is the position
of the operating officials of the Ilinois Steel Co. For the evils of a 12-hour
day are even greater than the evils of 7-day labor. There is no industry where
emergencies do not sometimes arise requiring overtime work. In the steel mills
such emergencies often come in rush times, and the 10-hour machinists, elec-
tricians, repair men, and Inhorers boennip 12-liour men. In such cases also 6-day
workmen become for long periods of time 7-day men. And sometimes these
emergencies occur even in periods of depression. I met a steel worker on the
street of a Pennsylvania mill town last winter at a time when the mills had
been for months largely idle and congratulated him on his opportunity to rest
" Rest ! " he yelled at me, " I haven't had a Sunday in five months." He was
a repair man. But if overtime oppresses the 10-hour man, what of the workman
whose regular hours are 12 in number? Already overworked, an emergency
i-equiring overtime means incredible hardship.
One who had observed carefully social conditions in South Chicago said of
the steel workers, " Their day is 12 hours long and complete exhaustion is the
inevitable condition." A South Chicago physician told me that the men are over-
worked and do not get rested from day to day ;^ that the result is an excessive
alcoholism and premature breakdown, and yet, as nearly as I could judge, there
is less drive in South Chicago than in Pittsburgh.
But whether a man is actually overworked or not, a 12-hour day takes from
a community and from the home the time that both have a right to demand from
the citizen, and the result is a man handicapped with respect to his duties to
everyone, including himself.
Night schools in South Chicago boom when the mills are idle and go to pieces
with the return of prosperity. The average man can not hold down a 12-hour
job and then spend two hours in study at night. The testimony of night-school
teachers is that a man can not be held long after he gets a job in the mills.
Library facilities are poor In South Chicago. The Illinois Steel Co. has not yet
developed a Carnegie, but there are at least two branches of the Chicago Public
Library near the mills, and a settlement in the vicinity has a librai'y from which
books may be drawn. But steel workers do not use the books. Many a man
gets up at half past 4 in the morning in order to be at the mill at 6. Such a
man goes early to bed, even though he has a spell hand, and there is little
time for reading.
The libraries are not the only sufferers from the 12-hour day. I met a young
married man in South Chicago who had a home Indicating taste and refined
judgment. He wanted to go down town to theaters and concerts once in a while.
He wanted a chance to hear something good sometimes. The nickel theaters
near his home did not Interest him. But he could satisfy his appetite for good
things in music and the drama only by an investment of something of more
consequence than the price of seats. He works 12 hours a day — a schedule,
iThe statements, of other South Chicago physicians differed from this judgment.
M
DBPORATION. 3441
he told me, " that just allows me time to eat and sleep — no more." This is what
he said of it :
" If I want to go to the theater, here is what I am up against. It is just 1
hour and 17 minutes from the time I leave the plant at night that the Illinois
Central theater train leaves South Chicago. It takes me 15 minutes to get home
on the car after I catch one, but I often have to wait 10 to 20 minutes. Then
I've got to wash, change my clothes, and shave, and after that there isn't
enough lime left to eat a good supper if I'm going to catch that train. It is 12
o'clock midnight or later when we get back home, and I've got to get up again at
4.30 in the morning if I'm going to get to work on time. So you can guess how
much I go to the theater."
In the last 10 years the membership in the English-speaking churches of
South Chicago has declined, although the number of English-speaking men in the
mills has in the same period slightly increased. During the same period the
vitality of the churches has at best remained stationary. In some respects it
has declined. Ten years ago there was one institutional church maintained in
South Chicago. Now there is not even one. A large majority of the pastors
of these • churches gave as the reason for the lethargy in their churches the
12-hour- day and the 7-day week. The testimony was general that such con-
ditions " demoralize our work among the laboring people, for when they have
the time or opportunity to participate in religious activities they are so nearly
worn out that most of them prefer to remain at home and rest."
To the credit of the pastors of these churches it should be said that they
sent a committee to General Manager Field of the south works about two years
ago to protest against Sunday work. Mr. Field referred them to men higher in
authority, and they went to President Buflangton. As a result of their con-
ference the latter is reported to have written to Judge Gary. Undoubtedly this
movement of the ministers in South Chicago had an influence in bringing out
the now famous order of the Steel Corporation in May, 1910, calling for cessa-
tion of unnecessary Sunday work.
Health, hours of labor, Sunday work — these are avenues of opportunity open
to the Illinois Steel Co. Some of them they have already recognized. But, as
intimated above, there is more than an opportunity here. There is heavy re-
sponsibility, and there is no one but the company upon whom this responsibility
can lie. The workmen themselves are denied any opportunity to share it and
the public has not yet demanded the right to interfere. Indeed it has scarcely
interested Itself in any way in the behalf of the workers, who can not speak
for themselves. The public generally does its work on the other side. When
South Chicago citizens thought that new construction had gone to Gary because
Public Works Commissioner Patterson enforced the law and would not let the
steel company build out into the lake, they went to Springfield 200 strong —
business men, lawyers, doctors, and ministers — and lobbied for two weeks
for a bill permitting the company for a merely nominal remuneration to fill
in along the lake front and make new land. The measure was passed and the
delegation of loyal citizens returned to South Chicago rejoicing. The Illinois
Steel Co. has a legal department that is perfectly capable of presenting argu-
ments before a legislative committee, or, if pressure of legal business prevents,
they have ample means for employing additional counsel to defend their Inter-
ests. In spite of that these 200 faithful boosters spent their time and their
money in the interests of the steel company. It is to be hoped that the company
was grateful.
But here is an odd thing. Through all the history of the South Chicago plant
no delegation of citizens has ever gone to Springfield to secure legislation for
a rest day for the workers. After 29 years, while ministers have sometimes
petitioned the company and business men have stood idle, waiting for volun-
tary action, the company is at last granting a rest day. Nor in 1906, when 46
men were killed in the steel plant, did South Chicago citizens leave their busi-
ness to demand safety or compensation laws. They waited again for volun-
tary action, and it came — 26 years after the first steel was blown at the South
Works. Nor have the citizens of South Chicago ever lobbied at Springfield
for an abolition of the 12-hour day, for better housing regulations, improved
sanitary conditions, or for any other thing that is vitally connected with the
welfare of the 10,000 steel workers who live within their borders. They have
waited 30 years for these things and are still waiting. But when it was the
interests of the company that seemed to be at stake, they waited only until
the legislature met again, and then they literally stormed it— until they got
what they wanted.
3442 UXITED STATES ST^JKLrCUrCPUS^TTjiCMS^
But it is ttie steel company that we are considering, not tlie citizens of South
Chicago. The development of safety engineering by the company Is a mag-
nificent piece of work. In this departure it does not stand alone, though it
has been a pioneer within the corporation. The work of accident prevention,
the hospital system, and the plan of paying a fixed compensation to injured
men, all together constitute a policy within the TJnited States Steel Corporation
that is admirable.
But will the Illinois Steel Co. stop here? A pioneer in safety work, the
way is open to it as a pioneer in the work for industrial health. The report
of the Illinois commission on industrial diseases showed that certain forma
of disease no less than accidents constitute a just charge upon industry. And
this was a report that just barely crossed the borders of the field of which it
treated. It is so new a field here in Ajnerica that no one knows how far it
extends. It is thought by many that when this field shall have been fully
explored it will prove to contain greater need for human conservation than
ever did the industrial-accident field.
If the Illinois Steel Co. has reserves of courage and determination, it will
explore this field. It will find out the effects on the physical system of long
hours of steady work, and it will study the question of vice and alcoholism
among men who are kept on duty 12 hours a day and who do not work all of
those hours. It will find out more about gas poisoning, and it will consider
the effect of heat on heart action. And if the Illinois Steel Co. does all this,
there will follow a new movement for health that will be comparable to the
safety movement and will be, perhaps, even further reaching.
Ten years ago last summer there was a blast-furnace explosion at South
Chicago. It killed one man and severely injured several. But the Chicago
newspapers were unable to print the facts just as they were because the steel
company would not let them. Not only were the reporters barred from the mill
yard, but the police and fire departments were kept outside. Finally, the gen-
eral manager gave in to the extent of letting one police captain and one flre
captain into the plant and to let himself be interviewed by the newspapermen.
Even then he refused to disclose the names of the men injured.
" You may say that they were not badly hurt," he said ; " we will take good
care of them." '
Last winter there was a not altogether dissimilar accident at South Chicago,
in which one man was killed and several injured. But this time there was no
secrecy, no attempt at concealment, no refusal for information. The names
and addresses of all the men hurt were in the papers next day, together with
the story of the accident. What the public was given to understand 10 years
ago to be none of its business it now considers very emphatically a part of Its
business; and steel managers recognize that claim. Equally radical has been
the change in attitude toward the accidents themselves, their preventabillty,
and toward the social and economic issues involved. It has been a change as
great as the changes that have s^^?ept processes out of existence; as have
lifted, and stretched, and revolutionized the great plants themselves.
No company ever had such a chance to make a new record, not in output
and costs alone, but in human well-being, as the Illinois Steel Co. has at Gary.
New plant, new crews, new managers, no heritage of distrust, no remembrances
of petty tyrannies, no dark history of strikes or of violence — it is an oppor-
tunity of a century. There have been mistakes, but that opportunity Is still,
most of it, there.
In only lesser degree is this opportunity true at the rehabilitated South
Chicago works. And in the cheerful optimism of the very name under which
the campaign against death and injury is waged — the "safety boosting"—
we have a presage of what its logical sequence may mean if the conservation
of the health of steel workers makes headway in the next 10 years comparable
to the change of front as to accidents in the last 10.
[Bulletin No. 1, October 1, 1010.]
United States Steel Corporation committee of safety.
Committee of safety of United States Steel Corporation and subsidiary conir
panies. — Charles MacVeagh, chairman, general solicitor. United States Steel
Corporation; C. L. Close, National Tube Co.; F. B. Dodge, Tennessee Coal,
I Chicago Record-Herald, July 2, 1001.
UNITED STATES STEEL COEPOKATION. 3443
Iron & Railroad Co. ; S. W. Tener, American Steel & Wire Co. : E. H. Windom
Oliver Iron Mining Co. ; R. J. Young, Illinois Steel Co. ; W. W. Corlett secre-
tary.
THE COMMITTEE OF SAFETY.
On March 23, 1908, the general solicitor of the United States Steel Corpora-
tion and of its susidiary companies called a meeting of the casualty managers
of the subsidiary companies to be held at his office on April 9 and 10 for the
purpose of considering the results of the attempts which had been already
made to prevent accidents and of considering and formulating further plans
for the preventoln of accidents and safeguarding employees. Judge Elbert H.
Gary, chairman of the board of directors of the United States Steel Corpora-
tion, gave his hearty indorsement of the purposes of the meeting, as follows :
" Some of the gentlemen present, if not all of them, know that I am In hearty
sympathy with the movement. We should like to take a prominent part, a
leading part, in any movement and in every movement that is calculated to
protect employees of the different corporations in which we are interested, and
any requisition which is made for the expenditure of money to install equip-
ment to protect our people will be honored. And I do not hesitate to say that
we expect our legal departments and the gentlemen who are subject to their
control and direction and advice to take such steps as are practicable to ascer-
tain everything that can possibly be done at every locality and in every depart-
ment to add to the safety of our equipment and to prevent accidents. Upon the
ascertainment of the facts which enable the heads of departments to form an
Intelligment judgment we should be glad to have recommendations made, so
that we shall have an opportunity of finally passing upon the question involved.
But there is not any doubt that our corporation will promptly and fully ap-
prove every suggestion that is made for the betterment of the conditions in
this respect, provided the recommendations seem to be practicabe, if the only
question involved is the question of dollars and cents ; that is to say, we will
not hesitate to make the necessary appropriations in money to carry into effect
every suggestion that seems to us to be practicable for the improvement of the
conditions at our mills, so far as the question of taking care of our employees
is concerned."
The result of this meeting was the appointment of a committee of safety to
perfect a plan for Inspecting the different plants and works of the subsidiary
companies with reference to the best methods of preventing accidents and safe-
guarding employees. In addition the committee was to act as a clearing house
in obtaining and disseminating Information and suggestions tending toward
the prevetion of accidents and the safeguarding of employees. The committee
was given power to select inspectors to make written reports of the conditions
at the different plants and works with reference to their methods of preventing
accidents and to make suggestions for further means for better safeguarding
of workmen. After the receipt of such report and recommendations the com-
mittee was authorized to transmit them to the proper representatives of the
companies concerned requesting these persons to submit, within such time as
the committee might fix, returns showing what action had been taken upon
such reports and recommendations.
This committee put into operation Immediately a system of inspection, select-
ing men familiar with the machinery and operations of the different subsidiary
companies and sending them to inspect the mills and plants. These Inspectors
are also men of experience in matters connected with accidents, competent to
detect sources of danger and able to devise means of avoidance. They report
directly to the safety committee. Their reports are exhaustive, taking up each
building in the plant and covering It in detail. They call attention even to
the smallest sources of danger — ^worn floors, material piled carelessly, and
windows that should be cleaned to give better light; their comments cover
even loose planks that workmen have left where they might fall. Railings,
ladders, footwalks, and set screws are given the most careful scrutiny. Their
reports and recommendations are gone over with care by the safety com-
mittee and then are sent to the proper representatives of the company operating
the plant In question. The committee requests the company to submit, within
30 days, a return showing what action has been taken to carry out the recom-
mendations of the inspector; or, if objections are made to any recommenda-
tions, on what grounds. At the next meeting of the safety committee these
returns are taken up and discussed In detail. Where objections have been
made to any recommendations and the reason for such objections does not seem
Mfflcient to the committee the representative of the company concerned is
3444 UNITED STATES STiTEZT
v.'Uxijrvyxwxa.j.v^j.x ■
requested to appear and explain the matter. Whenever it seems necessary the
committee, or one or more members delegated for that purpose, makes a per-
sonal Inspection of the plant with regard to any points in dispute.
92 PER CENT ACCEPTED.
In two years the committee has had 78 of the largest plants thoroughly in-
spected. It has received and considered no less than 5,200 recommendations
made by the inspectors. More than 92 per cent of these recommendations were
accepted and complied with by the companies interested. Less than 8 per cent
required any additional discussion.
In fulfillment of its further purpose as a clearing house for information of
value in the prevention of accidents the committee during this time has re-
ceived from the different subsidiary companies more than 75 suggestions of
plans of new devices and appliances for safeguarding machinery, warning em-
ployees, and otherwise preventing accidents. These suggestions often come In
the form of letters stating the experience of the several subsidiary companies
in connection with different kinds of accidents due to causes which might exist
in other plants. These letters report various kinds of guards for machinery
which have been found effective, and are accompanied by blue prints, photo-
graphs, estimates of cost, and all Informatioa necessary to all the companies
where similar conditions exist, with recommendations from the committee re-
garding the different suggestions. By subsequent inspections the committee is
enabled to tell how fully these different devices have been adopted.
STANDABDIZATION OF SAFETY APPLIANCES.
The safety committee now is endeavoring to standardize those safety devices
which are in use upon machinery common to a large number of the different
plants. Heretofore each subsidiary company has worked out its own method
of guarding flywheels, gears, electric switchboards, and similar sources of
danger which exist in all large mills. An endeavor is being made to determine
from among the different methods in use to meet certain common sources of
danger which are the most effective and should be adopted by all mills and
plants of the United States Steel Corporation and its subsidiary companies.
It is hoped thus to Insure the use of only the most improved and effective safe-
guards and, by familiarizing the superintendents and foremen with these safe-
guards, to bring about their ready adoption everywhere.
It is for this purpose that the committee has brought together in this pam-
phlet for distribution among all the plants a few of the safety devices approved
by the committee, and it is hoped to follow it from time to time with additional
publications on the same line.
[Bulletin No. 2, July 1, 1911.]
United States Steel Corporation committee of safety.
Committee of safety of United States Steel Corporation and sul>sidia/ry
companies, July 1, 1911. — Charles MacVeagh, chairman, general solicitor, United
States Steel Corporation ; G. M. Cooper, American Bridge Co., American Bridge
Co. of New Xork, American Sheet & Tin Plate Co.; F. B. Dodge, Tennessee
Coal, Iron & Railroad Co. ; Thomas Ewing, National Tube Co. ; G. K. Preston,
Carnegie Steel Co. ; S. W. Tener, American Steel & Wire Co. ; E. H. Wlndom,
Oliver Iron Mining Co. ; R J. Young, Illinois Steel Co. ; C. L. Close, secretary.
THE SAFETY COMMITTEE.
Bulletin No. 1, issued by the safety committee on October 1, 1910, contained a
brief statement of the origin and organization of the United States Steel Cor-
poration committee of safety. The success of the work undertaken by this
committee led to a large increase in its work and its usefulness. Three years'
experience has led to some changes in the organization of the committee which
are expected to Increase Its effectiveness. The number of the committee has
been increased from five to seven members, in order that a majority of the
operating subsidiary companies may be represented. Mr. C. L. Close, who
formerly represented the National Tube Co. upon the committee, has now been
transferred to the service of the United States Steel Corporation and attached
UNITED STATES STEEL, COEPOEATION. 3445
to tlie general solicitor's office to assist in the administrative details of the
safety committee, both in the work of accident prevention and in the adminis-
tration of the voluntary accident relief plan. Mr. Close acts as secretary of
the committee. The meetings of the committee are now held quarterly in the
third weeks of Februaiy, May, August, and November.
The functions of the committee continue the same as they have been hereto-
fore, but are now earried out more fully than was originally possible. They are
as follows:
(l)The committee conducts thorough inspections of all plants of all sub-
sidiary companies from the standpoint of safety. These inspections are in
addition to those made by the companies themselves and are conducted by
inspectors selected from companies other than those operating the plants in
question. These inspectors report and are responsible to the safety committee,
and not to the companies whose plants are under inspection. From time to
time, and whenever special circumstances seem to require such action, the com-
mittee, or various members thereof, make these inspections themselves.
(2) The committee acts as a clearing house for all information relating to
the safety of employees. All safety devices and other methods of increasing
the safety of the workmen and of interesting the men in their own safety and
that of their fellow workmen, are reported to the committee by the subsidiary
companies in which they originate. These safety methods and devices are
carefully considered by the committee, and If approved are recommended to all
the subsidiary companies often with improvements suggested by the committee.
In this manner descriptions with full details, photographs, diagrams, and com-
plete Information of all matters dealing with the safety of employees Is dis-
seminated among the subsidiary companies.
(3) The committee at its quarterly meetings considers all serious accidents
which have occurred In any of the companies during the preceding quarter, with
a view to devising means for preventing the recurrence of similar accidents.
(4) In addition to its work for the prevention of accidents the committee
assists in the administration of the voluntary accident relief plan, and con-
siders any questions of general character which arise In the administration of
the plan.
By action of the finance committee of the United States Steel Corporation
on May 2, 1911, a continuance of the voluntary accident relief plan for another
year from May 1, 1911, was approved. The plan as thus' continued in opera-
tion has not been modified In any essential particular from the form in which
It was first put into operation on May 1, 1910." In fact, it has not been changed
at all from the manner in which it has been administered during the first year
of Its operation, but a few minor changes have been made In order to make
clear what was actually being done In Its administration. A copy of this
plan Is printed at the end of this bulletin.
PLANT SAFETY COMMITTEES.
Safety committees have been organized in almost all the plants of the sub-
sidiary companies. The organizations differ somewhat in the several com-
panies, but the plan usually followed is to have what is called a " permanent
committee " or " central committee," also a " workmen's committee." The
" permanent committee " is made up of superintendents, master mechanics, and
heads of departments, and reports directly to the manager of the plant. The
" workmen's committee " usually consists of three members and Is made up
from the rank and file of the mill. The members of the committee are allowed
sufficient time once or twice a month, or even as often as once a week in some
plants, to make an inspection of the plant, which may require from a few hours
to a whole day, according to the size of the plant. Workmen are paid their
regular rate of wages while on this work.
The duty of these committees Is to look for defects in buildings or equipment,
unsafe practices by the workmen in doing their work, and any other conditions
in the plant which might be the cause of accidents. After each inspection they
report In writing to the manager such matters as need attention, with such
recommendations as, In their opinion, will prevent accidents.
In some of the plants these recommendations are passed upon by the "per-
manent committee," and then sent to the manager of the plant for the proper
authority to carry out the suggestions.
The make-up of these committees is changed frequently, with the result that
in time every man in the mill will have been a member of one of these com-
mittees. The men are made to understand that after they have served their
time upon the committee they should not drop the work, but continue to make
3446 UNITED STATES STEKL. (JUKI'UKATIUJS .
suggestions. A good many suggestions come from ex-members of these com-
mittees.
Other duties of the committees are to investigate all serious accidents. In
making this investigation they go to the scene of the accident, examine wit-
nesses, when necessary, and malie a report as to what they thlnls: can be done
to prevent a similar accident; also whether, in their opinion, anyone was
negligent, and what they think should be done with the negligent person.
Careless men are laid off or discharged through tJie recommendation of these
committees.
These safety committees are accomplishing very good work in the mills and
are causing the men to take more Interest in their own safety and that of
others.
This bulletin shows a number of views of saftey devices approved by the
United States Steel Corporation safety committee. Several designs of guards
to be used for the same purpose are shown, with the idea of giving a choice
of designs If any one does not suit local conditions.
UtUted States Steel Corporation votuntary accident relief plan (May 1, 1911).
[Provided by subsidiary companies for employees injured and the families of employees
killed in work accidents.]
ACCIDENT RELIEF.
1. This plan of relief is a purely voluntary provision made by the company
for the benefit of employees Injured and the families of employees killed in the
service of the company, and constitutes no contract and confers no right of
action. The entire amount of money required to carry out the plan will be
provided by the company, with no contribution whatsoever from the employees.
2. Where the word " manager " appears In this plan of relief It means that
official of the company who has charge of this relief for his company.
3. The decision of the manager of this relief shall be final with respect to
all questions arising under this plan of relief, and he shall have full discretionary
power iu paying relief to meet any conditions which may arise and may not be
covered by this statement.
4. The privilege of this relief will take effect as soon as an employee enters
the service of the company, will continue so long as the plan remains In opera-
tion during such service, and will terminate when he leaves the service.
5. Payment of this relief will be made only for disablement which has been
caused solely by accidents to employees during and In direct and proper connection
with the performance of duties to which the employees are assigned in the
service of the company, or which they are directed to perform by proper au-
thority, or from accidents which occur in voluntarily protecting the company's
property or Interests. Relief will not be paid unless investigation of the
causes and circumstances of the Injury shows that It was accidentally inflicted
and that it renders the employee unable to perform his duties In the service
of the company or In any other occupation.
6. No relief will be paid for the first 10 days of disablement.
7. No employee will be entitled to receive relief except for the time during
which the surgeon certifies that he is unable to follow his usual or any other
occupation.
8. Employees will not be entitled to receive disablement relief for any time
for which wages are paid them.
9. The company will provide treatment by surgeons and hospitals of Its
selection.
10. The company will furnish artificial limbs and trusses In cases where
these are needed.
11. All men injured In the service of the company must obey the surgeon's
instructions In reporting for examination, using the remedies and following the
treatment prescribed, and going to the hospital If directed. No relief will be
paid unless these Instructions are obeyed. All employees who are disabled
but not confined to the house must report in person at the surgeon's office from
time to time, as reasonably requested, and must keep any other appointments
made by the surgeon.
12. All employees who wish, while disabled, to go away from their usual
place of residence, must first arrange with their employing officer and with the
UNITED STATES STEEL COEPOBATION. 3447
surgeon in charge as to the absence and the evidence of continued disablement
to be furnished. Such employees must report as often and in such manner as
may be required of them.
13. Where it is shown to the satisfaction of the manager that single men
contribute regularly to the support of actual dependents, the manager shall
have authority to fix the amount of relief, within the limits of relief for married
men.
14. No relief will be paid to any employee or his family if suit is brought
against the company. In no case whatsoever will the company deal with an
attorney or with anyone except the injured man or some member of his family
in the matter of relief to be paid under this plan, because it is part of the plan
that the whole amount paid shall be received by the employee and his family.
15. No relief will be paid for injuries caused or contributed to by the intoxi-
cation of the employee injured or his use of stimulants or narcotics or his
taking part in any illegal or immoral acts.
16. All employees of the company who accept and receive any of this relief
will be required to sign a release to the company.
17. "Whenever the persons entitled to receive any lump sum so consent the
relief will be paid to a savings bank or trust company to be held at interest
and paid over to the persons entitled to it in such installments as may be
agreed upon. This is earnestly recommended in all cases.
TEMPOBAEY DISABLEMENT.
18. Under tho terms and conditions stated here, employees shall be entitled
to the following temporary disablement relief, but no such relief will be paid
for the first 10 days nor for longer than 52 weeks : ,
Single men, — Single men who have been five years or less in the service of
the Company shall receive 35 per cent of the daily wages they were receiving
at the time of the accident. Single men of more than five years' service shall
receive an additional 2 per cent for each year of service over five years. |But
in no case shall single men receive more than $1.50 per day.
Married men. — Married men living with their families who have been in the
service of the company five years or less shall receive 50 per cent of the daily
wages they were receiving at the time of the accident. For each additional
year of service above five years 2 per cent shall be added to the relief. For
each child under 16 years 5 per cent shall be added to the relief. But in no
case shall this relief exceed $2.50 per day for married men. Married men not
living with their families shall be classed as single men.
PERMANENT DISABLEMENT.
19. The amount of relief which will be paid to employees who have sustained
some permanent disablement, such as the loss of an arm or leg, will depend
upon the extent to which such disablement renders it difficult for them to
obtain employment. The kinds of disablement that may occur and the extent
to which each interferes with employment differ so greatly that it is impossible
to provide any adequate schedule of relief which will be paid in all cases of
permanent disablement. The amounts which wiU be paid in cases not specifi-
cally mentioned here must of necessity be left to the discretion of the manager ;
but it is the intention of the company that this discretion shall be so exercised
in all cases as to afford substantial relief corresponding as far as possible with
the amounts stated below, considering the special circumstances of each case
and the character and extent of the injury.
(a) For the loss of a hand, 12 months' wages.
(6) For the loss of an arm, 18 months' wages.
(c) For the loss of a foot, 9 months' wages.
(d) For the loss of a leg, 12 months' wages.
(e) For the loss of one eye, 6 months' wages.
(/) For permanent total disablement, such amount as shall be required in
the judgment of the manager to make suitable provision for the injured man,
but in no case less than the death relief for such a man.
Loss of both hands, feet, or eyes, or of any two of these members, shall be
classed as permanent total disablement.
20. Relief for the families of employees killed in accidents which happen in
the work of the company will be paid only where the death of the employee is
3448 UNITED STATES STEEL COBPOKATION.
Shown to have resulted from an accident (or sunstroke or heat exhaustion) in
the work of the company during and in direct and proper connection with the
performance of duties to which the employee had been assigned in the service
of the company or which he had been directed to perform by proper authority,
or from accidents which occur in voluntarily protecting the company s property
or Interests. . ,, . , . ^
21. Death relief will be paid as soon as possible after the required proof of
cause of death is obtained and a satisfactory release given.
22. The company will pay reasonable funeral expenses, not to exceed $100.
23. No relief will be paid for death caused or contributed to by the intoxica-
tion of the employee killed or his use of stimulants or narcotics or his taking
part In any illegal or immoral acts.
24. No relief will be paid to the family of any employee if suit Is brouglit
against the company.
25. Under the terms and conditions stated here, the widows and children of
employees killed in accidents which happen in the work of the company shall
be entitled to the following death relief :
In the case of married men living with their families, who have been in the
service of the company five years or less and leave widows or children under
16 years of age, the company will pay relief to an amount equal to 18 months'
wages of the deceased employee. For each additional year of service above five
years, 3 per cent shall be added to this relief. For each child under 16 years,
10 per cent shall be added to this relief.
But in no case shall this death relief exceed $3,000.
26. This plan of relief will be continued in operation for one year from May
1, 1911, but may be modified to conform to any statutory plans.
United States Steel and Carnegie pension fund, operative January 1, 1911, mi
applicable to employees of the United States Steel Corporation and subsidiary
companies.
GENEBAL NOTICE TO EMPLOYEES.
The United States Steel and Carnegie pension fund was established in the
year 1910 by the joint action of the United States Steel Corporation and Andrew
Carnegie. Its purpose is the payment to employees of old age pensions from
the income of the fund. For this purpose the United States Steel Corporation
provided $8,000,000, which, with the Carnegie relief fund of $4,000,000, created
by Andrew Carnegie on March 12, 1901, makes up a joint fund of $12,000,000.
This pension fund is administered by a board of 12 trustees through a man-
ager appointed by the board, with such powers and duties as may be given him
by the board.
The pension rules are ostabllshed by resolution of the board of trustees and
apply to all employees in the service of the United States Steel Corporation,
or of any company owned or controlled by it on January 1, 1911, or thereafter.
PENSION BULES.
Vv-HO MAT OBTAIN PENSIONS.
Class 1. — Pensions by compulsory retirement. — ^AU men who have been 20
years or longer in the service and have reached the age of 70 years shall be
retired and pensioned.
All women who have been 20 years or longer in the service and have reached
the age of 60 years shall be retired and pensioned.
Class 2. — Pensions by retirem,ent at request. — Any man who has been 20
years or longer in the service and has reached the age of 60 years may be re-
tired and pensioned either at his own request or at the request of his employing
officer.
Any woman who has been 20 years or longer in the service and has reached
the age of 50 years may be retired and pensioned either at her own request or
at the request of her employing officer.
Class 3. — Pensions for permanent incapacity. — ^Any employee who has been
20 years or longer in the service and has become permanently totally Incapaci-
tated through no fault of his or her own, as a result of sickness or injuries re-
ceived while not on duty, may be pensioned at the discretion of the board of
trustees.
UNITED STATES STEEL COEPOEATION. 3449
AMOUNT 01' PENSIONS.
Rate. — For each year of service 1 per cent of the average regular monthly
pay received during the last 10 years of service.
Maximum and minimum amounts. — No pension will be more than $100 a
month or less than $12 a month.
HOW TO OBTAIN PENSIONS.
Class 1 cases. — Employing officer will notify employee of the date on which
employee will be retired and report case to the manager of the fund.
Glass 2 cases. — Employee may apply to employing officer to be retired, or
employing officer may notify employee that he wishes employee to be retired,
and in either event employing officer will report case to the manager.
Class 3 cases. — Employee may apply to employing officer, who will report case
to the manager.
Every pension report will be sent to the president of the employing company
for his approval.
WHEN AND HOW PENSION'S AKB PAID.
Pensions will be paid monthly, at the close of each month, beginning with
the month fixed by the board and ceasing with the month succeeding that in
which the death of the retired employee occurs.
GBNEKAL INFORMATION.
The service for which an employee shall receive credit is that which he has
rendered, continuously, to the United States Steel Corporation, or to one or
more companies a majority of whose stock is owned or controlled by it, and to
their predecessors.
Employees who leave the service or are discharged thereby forfeit the years
of service then to their credit and their privileges under the pension rules
unless reinstated within two years. Time thus lost will be deducted in reckon-
ing the length of service.
Lay off for less than six months on account of leave of absence, suspension,
reduction in force, or disability will not be deducted in reckoning length of
service ; but if such lay off continues longer than six months, without an exten-
sion of time granted by his employing officer, the employee will be considered
to have left the service. He can be reinstated if he returns to work within two
years; but time thus lost will be deducted. Employees on lay off must return
to work as soon as possible, or if unable to do so should apply within six
months for an extension of time.
These rules will be applied in reckoning service rendered prior to January 1,
1011, and thereafter.
An employee placed upon the pension list must retire from and can not re-
enter the service, but may engage in other business so long as such other busi-
ness is not of the same character as his former employment.
A pension may be withheld or terminated in case of misconduct on the part
of the beneficiary or for other cause, sufficient In the judgment of the board, to
warrant such action.
No employee has any legal right to a pension and the pension rules do not
confer upon any employee any right to be retained in the service.
Pensions are not subject to attachment for debts; neither will any assign-
ment of pensions be permitted or recognized under any circumstances.
All questions arising out of the administration of the fund and relating to
employees will be decided by the manager; but employees have the right of
appeal to the board of trustees within 30 days after receipt of notice of the
manager's decision.
A report giving an account of the fund and its administration will be made
annually and will be published and posted.
The full text of the pension rules. In pamphlet form, will be furnished by
employing officers upon request.
By order of the pension committee.
J. B. Eeskine,
Manager, Oliver Building, Pittsturgh, Pa.
jANtTAEY 1, 1911.
3450 UNITED STATES STEEL COEPOEATION.
New Yobk, December SI, 1902.
To the officers and employees of the United States Steel Corporation and of its
subsidiary companies:
Gentlemen : For several months the finance committee has been engaged in
perfecting a plan which, in its opinion, would make it your common interest to
become permanent holders of the preferred stock of the corporation.
From the earnings of the corporation during the year 1902 there will hare
been set aside at least $2,000,000, and as much more as is necessary, for the
purchase of at least 25,000 shares of the corporation's preferred stock for the
purpose of making the following offer to all the employees of the Steel Corpora-
tion and of its subsidiary companies:
At the present time there are in the service of the corporation, and of its
subsidiary companies, about 168,000 employees, whom we propose now to divide
into six classes, as follows :
Class A will include all those who receive salaries of $20,000 a year or over.
Class B will include al those who receive saaries of from $10,000 to $20,000
a year.
Cass C will include all those who receive salaries of from $5,000 to $10,000
a year.
Class D will include all those who receive salaries of from $2,500 to $5,000
a year.
Cass E wijl include all those who receive salaries of from $800 to $2,500 a
year.
Cass F will include all those who receive salaries of $800 a year or less.
During the month of January, 1903, the above-mentioned stock will be offered
to any and every man in the employ of the corporation, of any of its sub-
sidiary companies, at the price of $82.50 per share ; subscriptions for this stock
to be made on blanks obtainable at the office of the treasurer of any subsidiary
company.
Every man can subscribe for as much stock as he chooses, not to exceed the
sum represented by a certain percentage of his annual salary, as indicated in
the following table :
Any man who belongs in Class A, as indicated in the preceding classification,
will be allowed to subscribe for an amount of stock represented by a sum not
to exceed 5 per cent of his annual salary.
Class B, 8 per cent.
Class C, 10 per cent.
Class D, 12 per cent.
Class E, 15 per cent.
Class F, 20 per cent.
If, on this basis of subscriptiou. more than 25,000 shares shall be subscribed
for, 25,000 shares will be awarded to the several subscribers in the order of
the classes, beginning with the lowest or class F, the upper classes to receive
only in case any stock shall remain untaken by the class below, and each class
to receive ratably in the amount left for that class if there be not enough to
satisfy the full subscription of that class, but each subscriber will be allotted
at least one full share, even though this might make It necessary for the
finance committee to purchase more than 25,000 shares.
Payment of the subscriptions for the stock must be made in monthly install-
ments, to be deducted from the salary or wages of the subscriber, In such
amounts as he may desire, not to exceed 25 per cent of any one month's salary or
wages.
A man may take as long as he chooses, not exceeding three years, to pay for
his stocky
Dividends on the stock will go to the subscriber from the date on which he
commences to make payments on account of his subscription.
Interest at 5 per cent will be charged on deferred payments on the stock.
In case a man shall discontinue payments before his stock shall have been
fully paid for, he can withdraw the money he has paid on account of principal
and may keep the difference between the 5 per cent interest he has paid and
the 7 per cent dividend he has received on the stock ; and thereupon his sub-
scription and all Interest on the stock to which the same relates shall cease
and determine.
As soon as the stock shall have been fully paid for it will be issued In the
name of the original subscriber and the certificate will be given to him, and
he can then sell it any time he chooses. But as an inducement for him to keep
it and to remain continuously in the employ of the corporation or of one or
!JJNi.xj!iiJ OXAXJM3 oxiijiij (juiil'OEATION. 3451
another of the subsidiary companies, and to have the same interest in the busi-
ness that a stockholder or working partner would haye, the following offer is
made, viz:
If he will not sell or part with the stock, but will keep it and in January
or each year, for five years, commencing with January, 1904, will exhibit the
cmincate to the treasurer of his company, together with a letter from a proper
offlcial, to the effect that he has been continuously in the employ of the cor-
poration or of one or another of its subsidiary companies during the preceding
year, and has shown a proper interest in its welfare and progress, he will, dur-
ing each of such five years, receive checks at the rate of $5 a share per year.
For example : If a man buys one share of this stock in January, 1903, he will
undertake to pay $82.50 for it. If, after paying for It, he keeps it for five
years he will in each year have received dividends at the rate of 7 per cent
on the par value of the stock, and also will have received each year an extra
dividend, so to speak, of $5 ; this latter sum being paid him as special compen-
sation for rendering continuous faithful service to the corporation or to one
or another pf its subsidiary companies, as shown by the exhibition of his cer-
tificate, together with a letter from a proper official, showing that he has
worked to promote the best interests of the company in which he has thus be-
come practically a partner.
If he shall remain continuously in the service of the corporation or of one
or another of its subsidiary companies for five years, at the end of the fifth
year the corporation intends that he shall receive a still further dividend,
which can not now be ascertained or stated, but which will be derived from the
foUowtng source, viz:
All who subscribe for stock in January, 1903, and commence to pay for it,
but who discontinue at any time during the five years, of course, will not re-
ceive the $5 per share for such of the five years as remain after they discon-
tinue. The corporation will, however, pay Into a special fund each year the $5
payments that would have been made to such subscribers had they continued.
TMs fund shall be credited with 5 per cent annual Interest, and at the end of
five years' period the total amount thus accumulated will be divided Into as
many parts as shall be equal to the number of shares then remaining in the
hands of men who shall have continued in such employ for the whole five years,
and the corporation will then, by its own final determination, award to each
man whom it shall find deserving thereof as many parts of such accumulated
funds as shall be equal to the number of shares then held by him under this
plan:
Provided, however, that If a subscriber shall have died or shall have become
disabled while faithfully serving the corporation or one or another of its
subsidiary companies, during such five years' period, the money theretofore
paid by him on account of the stock he was purchasing, or, if he has fully paid
for It, the certificate of stock may be turned over by the corporation to his
estate or to him, together with a sum equal to $5 per share for each of the five
years not then expired.
If this plan shall be received favorably and shall meet with success, it is
intended, at the close of next year, to make a similar offer, excepting, of course,
that the price at which the stock then wUl be offered can not be guaranteed
now ; it is, however, the intention to offer it at about the then market price, and
in all other respects to make the terms of the offer similar to those now
submitted.
The continuation of this policy would make it possible for a man to buy one
or more shares of the stock each year under a contract with the corporation
upon terms offering a safer and more profitable investment than he could pos-
sibly find for his savings anywhere else.
By order of the finance committee.
United States Steel Cobpobation.
Geoeqe W. Peekins, Qhainnan.
UnriTED States Steel Cobpobation,
Wew York, January 2, 191S.
To the officers and employees of the United, States
Steel Corporation and of its subsidiary companies.
Gentlemen : Annually for the past nine years the corporation has offered
to its officers and employees and to the officers and employees of its subsidiary
companies the privilege of subscribing for a specified number of shares of its
17042 — No. 51 — 12 5
3452 UNITED STATES STEEL COEPOEATION.
Stock under certain terms and conditions. The corporation now offers to such
officers and employees the opportunity to subscribe for shares of its preferred
or common stock at the price of $110 per share for the former and $65 per share
for the latter, subject to the following conditions :
First. All subscriptions shall be made with the express understandhig that
the decision of the finance committee of the United States Steel Corporation at
all times shall be final with respect to the rights or interests of the subscribers,
or any question relating to the same.
Second. All subscriptions shaU be for one or more shares of preferred or
common stock at the subscription price of $110 per share for preferred stock, or
$65 per share for common stock, with the understanding that there may be
allotted to the subscriber all or any part of his subscription, as such finance
committee may determine. No subscription will be received for a combination
of both preferred and common stock.
Third. The following table shows the maximum number of shares which may
be subscribed for, in accordance with the preceding section, by employees whose
salaries or wages are within the respective limits stated, but an employee of
any class may subscribe for one or more shares up to the maximum he Is en-
titled to :
SUBSCRIPTIONS TO PBEFEEBED STOCK.
Employees receiving annual salaries of : Shares.
$1,100 or less 1
$1,100.01 to $1,833.33 2
$1,833.34 to $3,208.33 3
$3,208.34 to $4,125 4
$4,125.01 to $6,050 5
$6,050.01 to $7,150 6
$7,150.01 to $8,250 7
$8,250.01 to $9,350 .. 8
$9,350.01 to $13,062.50 9
$13,062.51 to $14,437.50 , 10
$14,437.51 to $15,812.50 11
$15,812.51 to $17,187.50 12
$17,187.51 to $18,562.50 13
$18,562.51 to $19,937.50 14
$19,937.51 to $34,100 15
STTBSCEIPnONS TO COMMON STOCK.
Employees receiving annual salaries of : Shares.
$487.50 or less 1
$487.51 to $1,083.33 ■_ 2
$1,083.34 to $1,516.66 3
$1,516.67 to $1,950 4
$1,950.01 to $2,383.33 5
$2,383.34 to $3,520.83 ■- __ 6
$3,520.84 to $4,062.50 T
$4,062.51 to $4,604.16 " _ 8
$4,604.17 to $6,175 __ .9
$6,175.01 to $6,825 10
$6,825.01 to $7,475 11
$7,475.01 to $8,125 . 12
$8,125.01 to $8,775 _ 13
$8,775.01 to $9.425 i 14
$9,425.01 to $12,593.75 15
$12,593.76 to $1.8,406.25 , _ __ __" _' __ 16
$13,406.26 to $14,218.75 _ - 17
$14,218.76 to $15,031.25 _ __ _ .IS
$15,031.26 to $15,843.75 _ _ 19
$15,843.76 to $16,656.25 . _ ~_~ ' 20
$16,656.26 to $17,468.75 _ . . 21
$17,468.76' to $18,281.25 _ 22
$18,281.26 to $19,093.75 _ • .23
$19,093.76 to $19,906.25 _ _ _ 24
^19,906.26 to $33,150 25
UNITED STATES STEEL COEPOBATION, 3453
Fourth. Payment of the subscriptions shall be in monthly Installments, to be
deducted from the salary or wages of the subscriber, in snch amounts as he may
wish, subject to the provision that the minimum amount of a monthly install-
ment shall be $2.50 per share for preferred stock and $1.50 per share for com-
mon stocli, and that no installment shall exceed 25 per cent of any one month's
salary or wages. It is hoped that subscribers will pay their installments in
even dollars, but if more than the minimum is paid it must be in even dollars.
The stock must be paid for within three years. Interest at 5 per cent per an-
num will be charged on deferred payments on the stock.
Fifth. From the date on which payments begin and during the continuation
of such payments the dividends paid on the stock wiU be credited to the account
■of the subscriber as part of his payments until the stock is fully paid and is-
sued to him, after which dividends will be paid to him as to other stockholders.
Sixth. Subscriptions will be canceled —
(a) At the request of the subscriber.
(6) By leaving the service or failing to resume employment when requested
(see sec. 11).
(c) Whenever payments on account of subscription shall have been discon-
tinued without the consent of the corporation for a period of three months.
Thereupon, the subscription and all interest in the stock to which the same
relates shall be terminated and there will be returned to the subscriber the exact
amount of his payments made on account, with interest at 5 per cent per annum
on the same from time of payment, no credit being given him for dividends or for
the special allowance referred to in third paragraph of section 7, and no Interest
being charged on deferred payments.
A subscriber who cancels his subscription must cancel all of it.
Seventh. When the stock is fully paid for, it will be issued in the name of the
subscriber. He may sell his certificate whenever he chooses, but as an. induce-
ment for him to keep it while he remains in the service the following offer is
made, viz:
If he will keep the stock and In January of each year, for five years, bom-
menclng with January, 1913, wiU exhibit the certificate to the treasurer of his
company, together with a statement from a proper oflBcial that he has been
continuously In the employ of the corporation or of one or another of its sub-
sidiary companies during the preceding year, and has shown a proper Interest
in its welfare and progress, he will for each five years receive a cash payment
at the rate of $5 a share for each share of preferred stock, and $3.50 a share
for each share of common stock.
Subscribers who may not have fully paid their subscriptions by January in
any year, wIU, If their subscriptions are still In force, and they have otherwise
fulfilled all the conditions of continuous and faithful service as provided, be
credited In their subscription accounts with the special allowance of $5 per
share on their subscriptions for preferred stock, and $3.50 per share on their
subscriptions for common stock.
Eighth. If a subscriber keeps his certificate and remains continuously in the
service for five years, the corporation Intends that he shall then receive a still
further compensation, which can not now be ascertained or stated, but which
will be derived from the following sources, viz :
The special allowances referred to In section 7 which are forfeited by —
(o) Cancellation of subscription;
(6) Transfer of certificate from name of subscriber, whether Intentionally or
otherwise ;
(c) Leaving the service, or failing to resume employment when requested
(see sec. 11)
will be paid by the corporation into a special fund at the end of each year.
This fund will be credited with Interest at 5 per cent and at the end of the five-
years period the total amount thus accumulated will be divided into as many
parts as shall be equal to the number of shares of preferred stock plus seven-
tenths of the number of shares of common stock then remaining In the hands of
subscribers who shall have continued In stich employ for the whole five years.
The corporation wUl then by its own final determination award to each sub-
scriber whom It shaU find deserving thereof as many parts of such accumulated
fund as he shall be entitled to on basis of the number of shares then held by
him under this plan, 1. e., one part for each share of preferred and seven-tenths
of one part for each share of common.
3454 UNITED STATES STEEL COBJeOJiAXiUJN .
Ninth. In case a subscriber dies or becomes permanently disabled while faith-
fully serving the corporation or one of its subsidiary companies during such
five-year period, payments will be made to his estate or to him as follows :
(o) If his subscription is fully paid and he has received and not disposed of
his certificate of stock, the corporation will pay, as above stated, a sum equal
to $5 or $3.50 per share for each of the five years not then expired, and also a
pro rata amount of the special fund arising from forfeitures, referred to in
section 8 preceding, which may have accrued at the time of his death or
disability.
(&) If his subscription has not been paid In full, the corporation will pay, as
stated, the money theretofore paid in by him on account, together with the
dividends paid on the stock subscribed for, the special compensation for the
entire five-year period, and a pro rata share of the amount of the special fund
mentioned in paragraph (o) preceding, less interest at 5 per cent per annum
on (Jeferred installments.
(c) If at time of decease or permanent disablement the subscription has been
fully paid but certificate not yet delivered, the corporation will turn over the
certificate, as first stated above, together with the additional payments as men-
tioned in paragraph (a) preceding.
A pensioner will not be permitted to subscribe, but any employee who sub-
scribes and is subsequently pensioned will at his request be permitted to pay
up his subscription on the same terms as If he had remained in the service, pro-
vided, however, that as soon as he shall have fully paid his subscription and
received his certificate of stock he will be treated as though permanently dis-
abled, and payments will be made to him in accordance with provisions of
paragraph (o), section 9.
Tenth. A subscriber may designate in his subscription the person to whom
in the ejent of his death he desires the corporation to pay all amounts in con-
nection with his subscription which would otherwise be payable to his estate.
When such designation has been made, the corporation, upon satisfactory proof
of death under the conditions of the subscription, will pay to the person desig-
nated, if then living, all amounts in connection with the subscription which
would otherwise be payable to the estate of the subscriber. When such desig-
nation has been made the subscriber's estate shall have no claim to any such
amounts unless the person designated should die before the subscriber, and in
that event payment will be made to the subscriber's estate. By written notice,
delivered to the treasurer of the company by which he is employed, a subscriber
may change the person designated.
Eleventh. Subscribing employees whose employment has been or may be sus-
pended by reason of the temporary closing of the plants, and who shall continue
ready and willing when required to resume their service, will not be deprived
of the special allowance of $5 or $3.50 per share per year during such suspen-
sion. This need not interfere with their accepting employment elsewhere dur-
ing such suspension. As presumptive evidence of such willingness to resume
their employment the corporation will accept (1) from the holders of fully
paid subscriptions the presentation of the original certificate In January of
each year, and (2) from the holders of partly paid subscriptions the retention
by them of their subscription during the preceding year.
The above period of suspension will not be counted as part of the three years
limited for the full payment of the subscriptions, and during such suspension
monthly payments will not be required, though. If so desired by the employee,
they may be continued.
Failure to present the original certificate as provided, or the withdrawal of
a partly paid subscription, or the failure to resume employment when requested,
wUl constitutute a relinquishment of all benefits referred to in this circular.
In case of the death during such suspension of any such subscribing and con-
tinuing employee, his estate or his designee, as above, will be entitled to the
same benefits accruing to his subscription as If he had died while under
employment.
Twelfth. Subscriptions will be received until February 3, 1912, Inclusive, and
allotment will be made a few days later. The first deductions will be made
from February salary or wages.
By order of the finance committee.
United States Steei, Cobpobation,
RicHABD Tbimble, Secretary.
No. 52
UNITED STATES STEEL CORPORATION
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPRESENTATIVES
WEDNESDAY, FEBRUARY 28, 1912
e
WASHINGTON
GOVEENMBNT PRINTING OPFIOB
1912
UNITED STATES STEEL OOEPOEATION.
Committee on Investigation of the
United States Steel Corporation,
House of Eepeesentatives,
, Washington, D. C, Wednesday, Fehrvxiry 28, 1912.
The committee this day met, Hon. Augustus O. Stanley (chair-
man) presiding.
The Chairman. The committee will come to order.
Mr. Young. Mr. Chairman, I wish to present for insertion in the
record certain extracts from the Iron Ore Manual of the Lake Su-
perior District for 1911, by Eukard Hurd. This is a book which
we have used in previous hearings, and which has been testified to as
being a standard authority in the trade.
The extracts referred to are as follows:
The Minnesota Tax Commission and its Valuation oi' Iron Oke.
(By RuKAED Hurd.)
The history of the Lake Superior iron district would not be complete without
referring to the Minnesota tax commission, and the manner in which it has
accomplished the arduous work of valuing for taxation purposes the greatest
known iron-ore deposit in the world, of the Vermilion and Mesabi Ranges, con-
tained within the State of Minnesota and in the counties of St. Louis and
Itasca.
The Minnesota tax commission was created by an act of the legislature
approved April 23, 1907. On April 27, 1907, the three commissioners were ap-
pointed by the governor to serve for two, four, and six year terms, respectively,
and on that date qualified, organized, elected a secretary, and were then ready
for business. It is a permanent commission, in continuous session, has been
granted very broad powers, Is maintained by an annual appropriation of
$30,000, and obtains such additional extra appropriation upon request as it
finds necessary to facilitate its work.
The commission is in sole charge of taxation matters and of tax oflBcials.
The commission is practically a court on taxation, and establishes its own
procedure ; it orders and grants hearings ; considers and decides upon all appli-
cations for reduction or abatement of taxes; prescribes and publishes taxation
blanks and forms; orders reassessments both on its own volition or upon
certified official requests, appointing its own special assessors ; has authority to
call for persons and papers. Finally, the commission is the State board of
equalization.
Among the many matters taken under immediate consideration were: First.
The determination of the relation of the true to the assessed value of realty
prevailing throughout the State by the sales method, which resulted in obtain-
ing for the years 1902-1907, inclusive, a record of 53,010 real estate sales amount-
ing to $98,647,719, the assessed valuation of which for year of transfer was
$42,892,017; and
Second. The placing of an ad valorem value on the realty contained within the
so-called ore belts of the Vermilion Range in St. Louis County, and the Mesabi
Range in St. Louis and Itasca Counties.^
» From 1881 to 1897 there was a tax of 1 cent per ton on shipments.
3455
3456 UNITED STATES STEEL, COKPORATION.
The Mesabi Range, after hasty and often unreliable and incomplete explora-
tion, had only been opened and shipping since 1892. For a number of years
the value of its grade of iron ore had not been fully commercially determined.
The total tonnage was not known and explorations were mainly incomplete and
unreliable.
No previous attempt had been made to locate and assess tonnage. Crude
methods and arbitrary values were used, based upon previous output, or ex-
pected shipments and such fragmentary information as was available. The
1906 realty assessment on the mines amounted to a total of $64,486,409.
The tax commission decided to avoid arbitrary methods and to obtain, if
possible, the necessary information on which to base an intelligent, just, and
equitabJe assessment of the mineral properties.
On June 18, 1907, by circular letter, the commission requested all owners
and operators of iron ore properties to furnish by July 15, 1907, full informa-
tion concerning their holdings — tonnages with average analyses, character
and structure of the ore, date and term of mining leases and amount of roy-
alty, mining and other cost, average price of their ore for a term of years at
lower lake ports, etc.
The commission, with its secretary and the State inspector of mines, then
proceeded upon a thorough investigation and inspection of the underground
and open-pit mines, of prospects, and of mineral lands on the ranges. It
became apijarent that many mines were operating under the most favorable
conditions and shipping high-grade ore at low cost, while many other mines
had a higher cost and lower grade of ore, and many others were mining under
adverse conditions, with excessive rock, water, quicksand, and a low grade of
ore. Many mines had ore beginning at the surface ; others would have 50 to
100 feet of overburden, containing many millions of cubic yards that must be
removed at great cost prior to open-pit mining; while others, on account of
overburden, could be operated only as underground mines.
The commission grasped the situation and evolved the unprecedented plan
of placing an ad valorem value on and taxing iron ore in the ground and by
the ton.
Taking the Hull-kust and the Mahoning mines as models or standards for
the highest type of mining of high-grade ore under the most favorable condi-
tions and at the minimum cost, by a process of comparison, elimination, and
ad.iustment, there were created six groups or classes of active shipping mines,
with differentials to cover the varying adverse conditions of each class. The
reserves, part of active mines, or independent tonnages, were placed in three
groups or classes, according to their availability as future active mines.
The prospects were assessed as near as their value could be approximateil
according to their surrounding conditions and speculative value, on account
of proximity to or possibly being part of known ore bodies, until development
should make a reclassification necessary.
The mineral lands within the known ore belt were similarly treated, their
values being gradually increased as they approached to what seemed good
prospects.
Within 90 days after receipt of the tax commission's circular letter, mining
companies and mineral owners generally complied with the request, furnishing
data as to mining cost, analyses, prices, etc., and complete inventories of 2;')8
mines and reserves, containing a total of 1,192,509,7.'57 tons of merchantable
iron ore.
The next step was the classification of this great tonnage into the 6 groups
of active mines and the 3 groups of reserves.
Then was considered the average price of iron ore for a term of years at
lower Lake ports and the costs of production and delivery, the difference being
the full value in Minnesota of ore ready for shipment. Then followed con-
siderations of the term of the lease, the average life of the mine and the
present or discounted value of all the ore in the mine or reserve on a 4 per
cent annuity basis. Then came an Investigation through every known sourcf—
sales of realty. United States census. State auditor and State lioard of equaliza-
tion reports, etc. — of the average per cent prevailing throughout the State of
true to assessed value on all realty, and the application of that ratio to this
mineral realty.
uiv i-jrcia—o±ji.±VjO oj-jiiJilj uOEPOBATION.
3457
Proceeding In the above-outlined manner, the tax commission defined Its
classification and based the taxable value per ton of ore in the ground as
follows :
CLASSIFICATION FOE 190T.
Active mmes.
Cents.
Class 1. Inexpensive mining and high-grade ore 33
Class 2. Comparatively inexpensive mining and lower-grade ore 30
Class 3. Higher mining cost and mixed-grade ore 27
Class 4. Underground, low mining cost and high-grade ore 23
Class 5. Underground, higher mining cost and medium-grade ore 19
Class 6. Underground, high mining cost, excess rock and water 14
Reserves.
Class 1. Partially developed and stripped, about ready for shipping 15
Class 2. Not stripped and not fully developed 10
Class 3. Not stripped and only partially developed 8
Prospects, unexplored but located near to developed tonnages, to be assessed
at from $2,000 to $20,000 per 40-acre tracts.
Mineral lands unexplored but in ore belt, to be assessed at from $3 to $50
per acre.
After due notice and a public hearing, the tax commission placed a total
assessed valuation of $186,720,026 on a total of 1,192,509,757 tons. In addition,
the assessed valuation on 1858 prospects and parcels of mineral lands was
raised to $4,986,656. The personality of the mining companies was assessed
and the total was $4,334,490.
The 1908 grand total assessment made by the tax commission, after due
notice and a public hearing, was $174,273,632 on a total of 1,193,728,959 tons,
a decrease from 1907 value of $12,446,394. This decrease was caused by de-
ductions for shipments, stock piles (assessed as personal property), corrections
of tonnage estimates hastily prepared for the commission in 1907, and by
revision of classifications.
In 1909 there was a further reclassification and the establishment of rates
for active mines, their reserves and subreserves, to use in determining the
assessed valuation per ton of iron ore in the ground, as follows :
Classifloation for 1909.
Class.
Active
Re-
Sub-
mines.
serves.
reserves.
Cents.
Cents.
Cents.
1
33
21
15
2
30
18
15
3
27
15
10
4
23
11
5
19
10
..
6
14
8
•■
And the total assessment made by the tax commission, after due notice and
a public hearing, was $199,008,838 on 1,310,190,194 tons.
In 1910 the tax commission made the customary yearly adjustments; of
deductions for shipments and stock piles, of additions for new tonnages and
reclassifications of certain reserves into rates for active mines, and the com-
mission then ordered a general raise of 5 per cent on all realty in the townships,
villages, and cities (except the village of Gilbert, which had no ore) contamed
within the known ore belts of the Vermilion and Mesabi ranges. This action
of the tax commission resulted in a total assessed value of $220,423,038 for
1910 upon a total of 1,347,596,291 tona
3458
UNITED STATES STEEL OOEPOEATION.
This general raise established new rates for determining the assessed valua-
tion per ton of iron ore in the ground, for the active mines, reserves, and sub-
reserves. The 33-cent class changed to .3465 cents, the 30-cent class to .3150
cents, etc The new i-ates are as follows :
Classification for 1910.
Class.
Active
mines.
Re-
serves.
Sub-
reserves.
1
o
3
4
5
6
Cents.
0.3465
.3150
.2836
.2415
.1995
.1470
Cents.
0.2205
.1890
.1575
.1155
.1050
'.'0840
Cents.
0. 1575
.1575
.1050
Reclassification and adjustments are necessarily made every year. From
the remaining tonnage of the previous year must be deducted overestimates
(subject to verification by the mining engineer to the tax commission), ship-
ments and stock piles. New developed tonnage and increases In estimates must
be added and rates must be increased as properties pass from reserves to active
mines.
Since 1908 there has been a yearly increase in tonnage notwithstanding
decreases by revised estimates and shipments, and there has been a largely
increased yearly assessed value.
The summary of the work of the tax commission in assessing the mineral
properties of the State in 1907-10, the State board assessment of 1906, and the
shipments of those years are as follows :
Remaining ton-
nage May 1.
Assessed
value.
Minnesota
siupmeuts.
1906-.
$64,486,409
186,720,026
174,273,632
199,008,838
220,423,038
232,465,603
25,611,384
19071
1,192,509,757
1,193,728,959
1, 310, 190, 194
1,347,596,291
1,368,236,579
29,180,975
1908 1
18,098,894
1909 ' .
29,284,496
19101
30,317,583
1911
23,222,296
1 Assessed value of the remaining tonnage only; the assessment of personalty, prospects, and mineral lands
is not included.
The following is a comparative statement of reality assessments on tonnages,
prospects, and mineral lands in towns, villages, and cities In the ore belts of
St. Louis and Itasca Counties :
State board of equalization, 1906 $64,486,409
Minnesota tax commission, 1907 191,706,682
Minnesota tax commission, 1908 180,210,693
Minnesota tax commission, 1909 204,526,139
Minnesota tax commission, 1910 224,669,845
This great work has been accomplished by the tax commission without the
slightest friction, without drastic measures of any kind, and apparently with
the feeling among the operators that they were being fairly treated, and that
they had every opportunity of presenting proof and of being heard at all times
on points or questions at issue.
The estimates of the official mining engineers to the tax commission, the
School of Mines of the University of Minnesota, and of its representative,
Edward P. McCarty, E. M., professor of mining. In verifying tonnage estimates,
are accepted cheerfully and practically without question. They inspire confi-
dence and insure satisfaction to the operators and tax commission.
In fact, some operators know through this source for the first time the actual
facts regarding their property.
UJNiXJii^ 0J.AJ.J10 nj.j!,r,jj OORPOEATION. 8459
The Guy una Range is still in its infancy. Exploration work on a large scale
lias just begun. There may be hundreds of millions of tons of iron ore awaiting
development — only the expenditure of millions of dollars can determine this.
See special Cuyuna Range report in this manual.
The Vermilion Range also may have a new life awaiting it from the tonnages
yet undiscovered.
The Minnesota tax commission has brought to light vast tonnages and values.
It has assessed every tonnage property on its own merits regardless of owner-
ship and by a method that is fair to all concerned.
Present Value of Ieon Oee Royalties of Mineral Leases Containing
Merchantable Tonnage.
(By RUKARD HURD.)
NEWLY CREATED WEALTH THROUGH MINERAL VALUE.
The recent development of vast tonnages of iron ore in what has been con-
sidered a wilderness of rock and swamp, without timber and useless for agricul-
ture and known as " mineral lands " or " wild lands," having previously only a
nominal speculative or prospective value, has brought to life practically a new
form of value — that of the present worth to the fee owner of the royalty on
the ore therein covered by a mineral lease.
More and more must this element of value be reckoned with; by the State
in the enforcement of the inheritance taxes, by probate courts in the adminis-
tration of estates, and by other courts in adjudication and in proceedings of
receiverships, trusts, bankruptcy, etc., where mineral rights are involved.
Newly developed wealth usually entails litigation as to ownership and value.
EXTENT OF CAPITAL AND DIVERSITY OF OWNERSHIP.
To respond to furnace demands for tonnages of every possible grade,
physical characteristics, and structure, and to obtain even a reasonable profit,
mining operations must be conducted on a very extensive scale. Operation,
equipment, supplies, wages, carrying charges, etc., require an enormous working
capital. Therefore very few active mines or reserves containing developed
tonnages of iron ore are owned in fee by the operating company. This would
require an investment of capital as vast in proportion as is the developed ton-
nage, and in amount almost beyond comprehension. The Vermilion and
Mesabi Ranges alone have a total of nearly 1,400,000,000 tons of merchantable
iron ore assessed at $225,000,000, the full value of which approximates
$562,000,000. These mines and reserves have a very large, widely scattered
ownership, resident and nonresident. The known tonnage on the Mesabi
Range is contained within some 35,000 acres. There is an equal or perhaps
larger acreage within the so-called Mesabi " ore belt " either unexplored or
explored and found barren of iron ore, or located as to almost certainly contain
no ore. ^,
MINERAL LEASES.
From the diversified fee ownerships the mine operators have from time
to time secured, ordinarily upon a small payment, what is known as a " mining
option" or the right to explore and to obtain a lease with the privilege of
mining the ore. These leases are made for a period usually of 50 years, and
the amount of royalty to be paid the fee owner for each ton of ore mined and
shipped is stated therein. The lease also provides for an annual minimum
payment in quarterly installments, being advance payments on account, and a
charge against the maximum royalty on the ore as mined. Such minimum
payment is made quarterly to the fee owner whether ore is mined or not. It is
practically a guaranteed annual income, rental or annuity.
As a rule these leases are executed when the explorations and drillings
seem to demonstrate that a sufficient tonnage will be developed to justify an
agreed minimum payment based upon an estimate of expected minimum
shipments. Complete explorations follow in due time and the full extent,
quantity and quality of the ore body is determined. The fee owner receives
regular reports of the explorations and mining. Occasionally leases may con-
tain modifications, such as a sliding scale of royalty or an increased royalty for
increase in metallic content.
All leases may be surrendered by the lessee upon giving stipulated notice,
usually 90 days, in which event he loses all advance made on account of annual
3460 UNITED STATES STJiJSL, uuJiroitAXiua.
minimum payments. Under all mineral leases the operating company pays all
taxes and assessments.
VALUATION OF DEVELOPED LEASES.
The minimum annual payment is a purely estimated, arbitrary amount, and
regular royalties range from 10 cents to $1.10, and even more, per ton. There
is no uniformity In rates. Each lease must be valued according to its terms and
own merits.
On mines or reserves that have been thoroughly explored, and where the ton-
nage is developed and the amount and grade of merchantable ore is known, a
simple but accurate method of determining the present or discounted value of
the total royalty of a mineral lease is herewith presented.
THE DETEBMINING VALtTArlON FACTORS.
1. Unexpired period of the lease.
2. Amount of merchantable tonnage subject to royalty.
3. Total value of the same calculated by the royalty rate per ton.
4. Amount of the annual minimum payment or annuity, on estimated tonnage.
5. Amount of annual minimum payment or annuity on actual tonnage.
6. " Life of mine," the term required to mine out the total tonnage.
7. Present value of $1 per annum, payable quarterly.
EtTLE FOB DETERMINATION OF PRESENT VALUE OF ROYALTIES.
Total royalty. — Multiply the tonnage (reduced by the equivalent due by
reason of any overpayment of annual minimum advanced) by the amount of
royalty per ton. The result is the total royalty which the fee owner will ulti-
mately receive, and it will be paid in, approximately quarterly installments.
Life of the mine. — Divide the total royalty, as ascertained, by the amount of
the annual minimum payment. The result is the " life of the mine " ; that is,
the annuity-paying period, or the number of years required to exhaust the ore.
Provided, however, that if this period as calculated extends beyond the lease,
then the unexpired term of the lease should be arbitrarily considered as the
" life of the mine." It is safe to assume that the operator will exhaust the ore
during the life of the lease.
Present value of the royalty. — (A) Where total royalty does not exceed total
of guaranteed annual minimum payments : Multiply the annual minimum pay-
ment, payable quarterly, by the present value of one dollar per annum, payable
quarterly, at the assumed rate of interest, and for the number of years deter-
mined as the life of the mine. The result is the present royalty value of the
lease.
(B). Where total royalty exceeds total of guaranteed annual minimum pay-
ments : Divide the total royalty by the unexpired term of the lease. The amount
is the adjusted approximate annual minimum which will be paid. Multiply this
annual minimum payment by the present value of $1 per annum, payable
quarterly, at the assumed rate of interest and for the number of years of the
unexpired term of the lease. The result is the present royalty value of the
lease.
This method is a practical approximation for finding the true present yalue
of the excess of developed tonnage over the assumed minimum. It will be spe-
cially noted that no general rule can be laid down when determining factors
have yearly variations.
Attention is again called to the assumption that the ore will be exhausted
before the expiration of the lease.
Illustration for A. — Term of lease, 50 years; unexpired term of lease, 30
years; royalty per ton, 25 cents; complete explorations develop as remaining,
2,000,000 tons; total royalty at 25 cents per ton, equals $500,000; life of the
mine, $500,000 divided by $20,000, equals 25 years ; guaranteed annual minimum
payments, $20,000 multiplied by 25, equals $500,000.
$20,000 per year, payalle quarterly, for Z5 years.
Present value:
At 7 per cent $239,104
At 8 per cent 219.796
At 9 per cent ... 202.962
At 10 per cent _ 188.210
uCTTTiJiD oxATJiS STEELi (JORPOEATION, 3461
Illustration for B. — Term of lease, 50 years; unexpired term of lease, 30
years; royalty per ton, 25 cents; complete explorations develop as remaining,
4,000,000 tons ; total royalty, at 25 cents per ton, equals $1,000,000 ; life of the
mine, the unexpired term of the lease, equals 30 years; guaranteed annual
minimum payments, $20,000 multiplied by 30, equals $600,000 ; excess of total
royalty over annual minimum value, $1,000,000, minus $600,000, equals
$400,000; adjusted approximate annual minimum payment, $1,000,000, divided
by 30, equals $33,333.
$33,333 per year, payalle quarterly, for 30 years.
Present value:
At 7 per cent $424,332
At 8 per cent 386. 329
At 9 per cent 353. 803
At 10 per cent 325.773
DETEBMINING INTEREST BATE AND FACTOBS.
While under the conditions named the security of the investment is unques-
tioned, for calculating present value the determining interest rate depends upon
a number of factors, such as :
1. Average worth of money at the given time and interest rate expected for a
long-time investment.
2. Fluctuating yearly Income as the property passes back and forth from
shipping and nonshipping stages, from large royalty income on shipments one
year to minimum annual payments when not operating.
3. Quality of the ore and availability for furnace demands.
4. Amount of the tonnage and the time required under normal mining con-
ditions to exhaust the ore.
5. Character and standing of the lessee, and his ability to meet the terms of
the lease.
6. Possibility of a surrender of the lease, depending upon whether the ore is
good' or lean, monetary situation, and the financial condition of ttie lessee.
Under all these conditions such an investment demands and is entitled to a
high rate of interest, even greater than a highest-grade preferred stock or bond
security would yield. Capitalists would not entertain the purchase of such a
proposition at ordinary rates of 5, 6, or even 7 per cent. While 10 per cent seems
to be the customary prevailing interest rate, it would appear that 8 per cent to
10 per cent should be now used in calculating the present value of iron-ore royal-
ties; that is, the investment required to purchase the royalty rights of a mineral
lease containing known, developed tonnage of merchantable iron ore.
Royalty only basis of value. — It will be observed that the assessed or full
value or market price of the tonnage is not and should not be considered. That
concerns only the operating company and the tax officials. That value has
gone beyond the control of the fee owner with the lease; his value is in the
royalty alone.
Valuation of undeveloped leases. — On leases of properties not developed, or
only partially developed, or containing present nonmerchantable ore, or where
In underground mines an estimate of total tonnage is impossible, any appraise-
ment of royalty value becomes a matter of judgment of experts familiar with
mining and geological conditions.
Accuracy of information. — ^As has been previously stated' in this manual, the
exploration is now so thorough that the outlining of the ore bodies and the
securing of accurate Information to obtain correct estimates of the amount of
tonnage and its grade, especially on the Mesabi Range, is now practically a
known quantity. To a certain extent this holds true of many underground
mines on other ranges. Where formerly their ore bodies could be followed.
blocked out, and their tonnages known for only a year or two ahead, modern
drilling methods now disclose the geological formation and determine the char-
acter and extent of the ore body.
Talles of present values. — For convenient reference in connection with this
subject standard tables of present values, quarterly and annual, are embodied
with and follow this article:
3462
UNITED STATES STEEL COKPOBATION.
Yearly tonnage shipments of iron ore from each range of the Lake Superior
district.
[Since the opening of the lock and canal at Sault Ste. Marie in 1855. Reprinted from the
Iron Trade Eeview.]
Year.
Marquette.
Menominee.
Gogebic.
Vermilion.
Mesaba.
Grandtotal.
1,449
36,343
25,646
16,876
68,832
114,401
49,909
124,169
203,055
243,127
236,208
278, 796
473,667
491, 449
617,444
830,940
779,607
900,901
1,162,458
919,557
891,257
992,764
1,010,494
1,033,082
1,130,019
1,384,010
1,679,834
1,829,394
1,306,425
1, 648, 034
1,480,422
1,627,383
1,861,414
1,918,760
2,634,816
2,993,664
2,612,242
2,665,169
1,835,893
2,060,260
2,097,838
2, 004, 221
2,715,035
3,125,039
3,767,010
3,457,522
3,246,346
3,868,025
3,040,245
2,843,703
4,215,672
4,057,187
4,388,073
2,414,632
4,266,172
4,392,726
1856
36,343
26,646
1868
16,876
68,832
1860
114,401
1861
49,909
124,169
1863
203,055
243,127
1865
236,208
278,796
1867
473,667
1868
491,449
617,414
1870
830,940
1871
779,607
900,901
1873
1,162,458
1874
919,657
891,267
1876
992,764
1877
4,593
78, 028
245, 672
524,736
727, 171
1,136,018
1,047,416
896,634
690, 435
880,006
1, 193, 343
1,191,101
1,796,755
2, 282, 237
1, 824, 619
2,261,499
1,466,197
1,137,949
1,923,798
1,660,407
1,937,013
2,622,265
3,301,062
3,261,221
3,619,063
4,612,609
3,749,667
3,074,848
4,495,461
5,109,088
4,904,728
2,679,156
4,875,385
4,237,738
1,016,087
1878
1,111,110
1879
1, 376, 691
1,908,745
1881
2,307,005
1882
2,965,412
2,352,840
1884
1,022
119, 860
747,689
1,303,267
1,424,699
2,016,391
2, 847, 786
1, 839, 674
2,971,991
1,329,385
1,809,468
2,647,976
1, 799, 971
2,268,236
2,498,461
2,795,856
2,875,296
2,938,156
3,664,929
2,912,708
2,398,287
•3,706,207
3,643,614
3,637,102
2,699,856
4,088,057
4,315,314
62,124
225,484
304,396
394,262
611,963
844,682
880,114
894, 618
1,167,660
820,621
948, 613
1,077,838
1,088,090
1,278,481
1,265,142
1,771,502
1,655,820
1,786,063
2,084,263
1,676,699
1,282,513
1,677,186
1,792,355
1,686,267
841,544
1,108,216
1,203,177
2,606,814
1885
2,516,201
1886
3,569,374
1887
4,742,276
1888
5,046,503
1889
7,292,644
1890
9,003,801
7,071,053
1892
4,246
613, 620
1,793,052
2,781,587
2,882,079
4,275,809
4,613,766
6,626,384
7,809,635
9,004,890
13,342,840
12,892,642
12,166,008
20, 168, 699
23,819,029
27,495,708
17,267,350
28,176,281
29,201,760
9,070,554
1893
6,066,718
1894
7,749,242
1896
10,429,037
1896
9,934,828
1897
12,464,574
1898
14,024,673
1899
18,251,804
1900
19,059,393
1901
20,593,507
1902
27,562,566
1903
24,271,761
1904
21,756,359
1906
34,262,115
1906
38,421,173
1907
42,170,878
1908
25,892,638
1909
42,604,110
1910
43,350,715
1911
32,130,411
Total
96,336,406
-39,689
75,306,746
+ 144,047
65,179,966
-44, 139
30,328,562
224,905,184
492,056,854
+60,219
Banaboo
972,309
Total
96,296,717
75,460,793
66,135,817
30,328,602
224,905,184
493,089,382
Author's note.— There should be added to the above grand total 1,032,628 tons, of which 972,309 tons are
shipments from the Baraboo district in Wisconsin and 60,219 tons are to correct miscellaneous shipment
records prior to 1891 from the Marquette, Menominee, and Gogebic Ranges. The correct grand total ol
shipments is 493,089,382 tons, as shown in preceding lists of individual mine shipments.
UNITED STATES STEEL CORPOEATION.
Prices of iron ore at lower ports for each range since opening.
[Reprinted from the Iron Trade Review.]
3463
Old Range- Vermilion.
Mesabl.
Year,
Bessemer.
Non-
Bessemer.
Bessemer.
Non-
Bessemer.
1855
$10.00
8.00
8.00
6.60
6.00
6.25
6.26
6.26
7.60
8.60
7.60
9.50
10.50
8.25
8.26
8.60
8.00
9.00
11.00
9.00
7.00
6.75
6.50
6.50
6.25
9.25
9.00
9.00
6.00
16.25
4.75
5.25
6.00
4.75
4.60
5.60
4.60
4.50
3.86
2.75
2.90
4.00
2.60
2.75
3.00
6.50
4.25
4.26
4.60
3.25
3.75
4.25
6.00
4.50
4.50
5.00
4.60
SIO.OO
8.00
8.00
6.60
6.00
5.60
5.00
5.37
7.60
8.50
7.50
9.60
8.00
8.25
9.50
8.50
8.00
7.60
9.00
7.00
4.60
6.50
4.25
4.25
4.75
8.00
7.00
6.25
4.75
4.50
4.00
4.60
6.00
4.00
4.50
5.25
4.25
3.65
3.20
2.60
2.25
2.70
2.15
1.86
2.16
4.25
3.00
3.25
3.60
2.75
3.20
3.70
4.20
3.70
3.70
4.20
3.70
1866
1757
1868
1869
1860
1861
1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
1873
1875
1877
1879
1880
1881
1883
1884"
1886
1887
1888
1889
1891
1892
1893
$3.00
2.35
2.15
3.60
2.25
2.25
2.40
4.50
3.25
3.25
4.00
3.00
3.60
4.00
4.76
4.25
4.26
4.76
4.26
1895 . .
$1.90
2.25
1896
1897
1 90
1898
1.76
1899
2.00
1900
4.00
1901
2.75
1902
2.75
1903
3.20
1904
2.60
1905
3.00
1906
3.60
1907
4.00
3.60
1909
3.50
1910
1911
4.00
3.60
1 The Vermilion and Gogebic ranges opened in 1884.
3464
UNITED STATES STEJil, UUkFUbatiuis.
Prices of pig iron and production.
[Reprinted from the Iron Trade Review.]
Y ear.
Price.
Long tons.
Year.
Price.
Long tons.
1865
f27.75
27.12
26.37
22.25
23.37
22.75
20.25
23.87
35.25
59.25
46.12
46.87
44.12
39.25
40.62
33.25
35.12
48.87
42.75
30.25
25.60
22.25
18.87
17.62
21.. 50
28.60
2.5. 12
21.85
700,159
788,616
712,640
629,548
750,560
821,223
653, 164
703,270
846, 075
1,014,282
831,770
1,205,663
1,305,023
1,431,250
1,711,287
1,665,179
1,706,793
2,648,713
2,660,963
2,401,262
2,023,733
1,868,961
2,066,694
2,301,215
2,741,853
3,835,191
4,144.254
4,623,323
1883
$19.04
17.18
15.27
18.96
21.37
17.38
18.00
22.15
15.15
15.00
12.65
9.65
9.40
12.40
8.35
9.66
10.30
24,16
16.16
16.90
21.60
13.35
15.60
17.26
21.50
16.00
14.75
19.00
4,596,510
4,097,868
4,044,526
6,683,329
6,417,148
6,489,738
7,603,042
1856 .
1884
1857
1885
1858
1886
1859
1887
1860
1888
1861
1889
1862
1890
1863
1891
8,279,870
9,167,000
7,124,602
6,667,388
9,446,308
8,623,127
9,652,680
11,773,934
13,620,703
13,789,242
16,878,364
17,821,307
18,009,252
16,497,033
22,992,380
25,307,191
25,781,361
16,936,018
25,795,471
27,298,645
1864
1892
1866
1893
1866
1894
1867
1895
1868
1896
1897
1870
1898
1699
1872
1900
1901
1874
1902
1875
1903
1876
1904
1877
1906
1878
1906
1907
1880
1908
1881
1909
1882'
1910
1 Prior to 1882 prices are for No. 1 anthracite foundry pig iron at Philadelphia. Succeeding prices are for
Bessemer pig iron in the valley at the time ore prices were fixed.
Production of iron ore in the United States in 1907 and 1908.
[Reprinted from "The Production of Iron Ores, Pig Iron and Steel in 1908," United States Geological
Survey, 1909.— By E. C. Harder.)
States.
Gross tons.
States.
Gross tons.
1907
1908
1907
1908
Minnesota
28,969,658
11,830,342
4,039,453
1,375,020
949,925
786,856
62,808
18,652,220
8,839,199
3, 734, 438
697,473
684,591
692,223
63,235
Wisconsin
838,744
837, 287
813,090
649,760
444, 114
111,768
50,439
37, 166
23,689
733,993
443,161
635,343
394,767
321,060
98,414
48,522
28,112
26,685
New York
New Jersey
Montana, Nevada, New
Georgia
Mexico, Utah, ^Vyo-
mlng, Texas, Arkansas,
Missouri and Iowa
North Carolina
Colorado, California,
Connecticut and Massa-
Ohio
West Virginia, Ken-
tucky, and Maryland...
Total
51,720,619
35,983,336
UJNITBD STATES STEEL CORPOKATION.
Imports of iron ore, ty countries, in 1907, 1908, and 1909.
3465
Countries.
Values.
Gross tons.
Values.
Gross tons.
Values.
Cuba
Spain
Greece
Newfoundland . . .
UmteA Kingdom
Germany
Canada
Belgium
Russia in Europe
French Africa
Other countries..
Total
667,
296,
23,
89,
6,
26,
54,
66,
$2,522,710
760,801
42,927
97,735
16,491
2,096
61,328
1,102
161,697
262,897
27,699
679,668
126,074
4, .680
48,285
2,028
602
5,013
1
6,750
SI, 766, 091
331,070
5,311
48,286
32,027
4,062
16,321
28
15,220
4,627
15,843
927,774
291,547
19,080
224,395
869
3
27, 155
3
32,010
37,208
134,913
1,229,168
3,937,483
776,898
1,694,957
$2,681,028
664,460
21,782
330,056
12,846
100
84,613
179
62,418
67,615
654,081
4,579,078
Imports of iron ore for 20 years — totals for 1881-1901.
Year.
Gross tons.
Year.
Gross tons.
Year.
Gross tons.
782,887
689,656
490,875
487,820
390,786
1,039,433
1,194,301
587,470
853,673
1,246,830
1891
912,856
806,685
526,961
168,541
524,163
682,806
489,970
187,093
674,082
897,831
1901
1882
1892
1902 .
1,165,470
980,440
487 613
1893
1903
1884
1894
1904
1885
1896
1905
1906
845,651
1886
1896
1,060,390
1,229,168
776,898
1,694,957
2,591,031
1887 ....
1897
1907
1888
1898
1908 .
1899
1909
1890
1900
1910
Note. — For many years Cuba has annually shipped more than one-half of the imported iron ore.
The above tables are credited to the Bureau of Statistics of the United States Department of Commereo
and Labor.
Apparent annual iron ore consumption in the United States, 1889-1910, gross
tons.
[Compiled from the American Iron and Steel Association Statistics and 1910 report and "The Production
of Iron Ores, Pig Iron, and Steel in 1908," United States Geological Survey, 1909.— By E. C. Harder.]
Year.
Domestic
iron ore
produced.
Stocks
of ore at
mines.
Imports.
Exports.
Stocks of
ore at
Lower Lake
ports
Deo. 1.
Zinc resid-
uum.
Apparent
consump-
tion.
Pig iron
produced.
1889
14,618,041
16,036,043
14,591,178
16,396,666
11,587,629
11, 879, 679
15,957,614
16,005,449
17,618,046
19,433,716
24,683,173
27,663,161
28,887,479
35,554,135
35,019,308
27,044,330
42,626,133
47,749,728
51,720,619
35,983,336
51.294,271
66,889,734
2,256,973
2,000,000
2,450,279
2,911,740
3, 626, 161
3,236,198
2,976,494
3,406,302
3,098,287
2,846,457
2,320,278
3,709,950
4,239,823
3,834,717
6,297,888
4,666,931
3,812,281
3,281,789
3,033,110
6,065,397
6,136,271
9,408,235
853,573
1,246,8.30
912, 864
806, 586
626, 951
167,307
524,163
682,806
489,970
187,208
674,082
897,831
966,960
1,166,470
980, 440
487,613
845, 661
1,060,390
1,229,168
776,898
1,694,957
2,691,031
2,607,106
3,893,487
3,608,489
4,149,451
4,070,710
4,834,247
4, 416, 712
4,964,984
6,923,766
6,136,407
5,630,283
5,904,670
5,859,663
7,074,254
6,371,085
6,763,399
6,438,967
6,262,465
7,386,728
8,441,533
8,965,789
9,426,681
43,648
48,660
38,228
31,859
37,612
26,981
43,249
44,953
33,924
48,502
65,010
87,110
62,311
65,246
73,264
68,189
90,289
93,461
93,413
110,225
141,264
137,173
14,366,562
16,302,025
16,476,989
16,032,687
11,616,412
11,600,393
17,203,255
15,765,128
17,380,184
20,708,604
25,613,903
26,722,683
29,367,171
35,886,921
34,232,399
30, 224, 910
43,433,138
49,356,343
51,880,398
32,473,268
62,080,428
66,161,091
7, 603, 642
9,202,703
1891
8, 279, 870
9, 167, 000
1893
7, 124, 502
6,667,388
1895
9, 446, 308
8,623,127
1897
9, 652, 680
11,773,934
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
40, 665
51, 460
64,703
88,445
80,611
213,865
208,017
265,240
278,208
309,099
455,934
644,876
13,620,703
13,789,242
16,878,354
17, 821, 307
18,009,262
16,497,033
22,992,380
25,307,191
25,781,361
15,936,018
26, 795, 471
27,298,546
3466
tTNITED STATES SxaJiiXj (juJtJt-UJta..LJ.oj.- .
The above table includes data on certain factors from which an approximate
estimate of the annual consumption of iron ore in the United States is deduced.
The result is of course merely an approximation, for no data are available on
certain factors which should enter into the final result. The elements accounted
for in the table and estimate are (1) domestic iron-ore production; (2) stoeU
of ore at mines; (3) imports of ore; (4) exports of ore; (5) stocks of ore at
Lake ports; (6) zinc residuum production.
Production of steel in the United States, 1880-1910, gross tons.
[Compiled from the American Iron and Steel Association Statistics and 1910 report and "The Production
ol Iron Ores, Pig Iron, and Steel in 1908," United States Geological Survey, 1909.— By E. C. Harder.]
Year.
Bessemer. Open hearth. Crucible. Other steel.
Total.
1860.
1863.
1864.
1865.
1866.
1867.
1868.
1869.
1870.
1871.
1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
l<iSS.
J 889.,
1890. ,
1891..
1892. ,
1893. ,
1894. ,
1895.,
1893..
1897..
1898. .
1899. ,
1900. .
1901..
1902.,
1903. .
1904. .
1905..
1900. .
1907..
1908..
1909..
1910..
2,679
7,589
10, 714
37,600
40,179
107,239
152,368
171,369
335,283
469, 639
600,524
653,773
829,439
1, 074, 262
1,374,247
1,614.687
1,477,345
1,375,531
1,519,430
2,269,190
2,936,033
2,511,161
2,930,204
3, 688, 871
3,247,417
4, 168, 435
3,215,686
3,571,313
4,909,128
3,919,906
6, 475, 315
6,609,017
7,680,354
6,684,770
8,713,302
9,138,363
8,592,829
7,859,140
10,941,375
12,275,830
11,667,549
6,116,755
9,330,783
9,412,722
893
1,339
1,785
2,679
3,125
6,250
8,080
19,187
22,349
32,255
50,259
100,851
131, 202
143,341
119,356
117,516
133, 376
218, 973
322, 069
314, 318
374, 543
613,232
679,753
669,889
737, 890
784,936
1,137,182
1,298,700
1,608,671
2,230,292
2,947,316
3, 398, 135
4,650,309
6,687,729
5,829,911
6,908,166
8,971,376
10,980,413
11,549,736
7,836,729
14,493,936
16,604,509
'11,838
8,075
9,258
13, 627
16, 940
16,964
19,197
19,643
29,911
31,250
26,125
6,911
31,059
12,244
32,436
5,672
36,180
11,256
35,163
9,202
36,098
10,647
38,309
7,640
60, 696
4,879
64,664
7,668
80, 145
2,720
75,973
2,691
71,835
4,999
53,270
4,563
67,599
1,615
71,973
2,367
75,375
5,694
70,279
3.682
75,865
6,120
71,175
3,793
72,686
4,484
84,709
4,648
63,613
2,806
51,702
4,081
67,666
858
60,689
2,394
69,959
3,012
89,747
3,801
101,213
4,974
100,562
4,862
98,513
6,471
112,772
8,386
102, 434
9,804
83,391
9,190
102,233
8,963
127,513
14,380
131,234
14,076
63,631
6,132
107, 355
22,947
122,303
55,365
11,833
8,075
9,258
13,627
16,940
19,643
26,786
31,250
68,750
73,214
142,954
198,796
216, 7«
389,799
533,191
669,618
731,877
936,273
1,247,335
1,688,314
1,736,692
1,673,535
1,560,870
1,711,920
2,662,603
3,339,071
2,899,440
3,385,732
4,277,071
3,004,240
4,927,681
4,010,995
4,412,032
6,114,834
6,281,680
7,166,957
8,932,857
10,630,857
10,188,329
13,473,695
14,947,250
14,634,078
13,859,887
20,023,947
23,398,136
23,362,594
14,023,247
23,965,021
26,094,919
' Part of the 1860-1871 crucible steel production should be credited to " Other steel."
The Itet steel produced in this country was probably made in Connecticut in 1728 by Samuel Higley and
Joseph Dewey. Cnicible steel was first successfully produced in the United States in 1832 at the works of
Wilhani and John H. Garrard, at Cmcmnati, Ohio. Bessemer steel was first made in this country in
September 1864, by William F. Durfee at an experimental plant at Wyandotte, Mich., and open-hearth
steelinl8C4bytheNew Jersey Steel & Iron Co. at Trenton, N. J. i i r
Mr. Young. I also submit extracts from Keport of the Minnesota
Tax Commission, 1910: Production of Iron Ore and Steel in 1910,
by Ernest F. Burchard ; A Decade in United States Steel, Dow, Jones
& Co. ; Iron Ores of the United States, by C. W. Hayes, Bulletin 394,
Geological Survey, and certain extracts from the Statistical Abstract,
1910.
„^,r^^^^5BfSBH^WBBH"^WlP0EATI0N. 3467
The statement and papers submitted by Mr. Young follows :
VALUATION OF MINES AND MINERAL LANDS FOE TAXATION PURPOSES.
One of the most important problems that confronted the tax commission
when it was first created in 1907 was the valuation of mines and mineral prop-
erties for purposes of taxation. Prior to that time no definite method of ascer-
taining the quantity, quality, or value of iron ore in any given description of
land had been adopted by the State. The attempts of local assessors to value
iron-ore properties on the hit or miss plan often resulted in grave inequalities
and were generally unsatisfactory to both mine owners and the State. The com-
mission early realized the necessity of devising some system of measuring values
that would be fair to the State and the owners of mineral properties and at the
same time be so scientifically correct in principle as to admit of little dispute.
The following extracts from the biennial report of the tax commission for
1908 outline the work of the commission in classifying mineral properties and
in determining rates of valuation for assessment purposes :
" The problem of taxing the iron-ore properties having come before the tax
commission, two questions required early consideration — one, how to ascertain
the value of such properties ; and the other, what basis of valuation would be
accepted as a means of getting at the value. Upon the method of procedure
two limitations were placed — one of the constitution and the law, in which
the principles of the general property tax had been laid down ; and the other,
the nature and character of the industry itself.
" Many opinions existed among mining men. State officers, members of the
legislature, and the public generally as to the value of ore in the ground. The
values were stated to be for ore in the ground from 5 cents to $1 per ton.
Even mining men themselves placed the values for taxing purposes at amounts
varying from 2 cents to 30 cents per ton. There was, therefore, little in the
form of definite information to be had regarding the basis of taxation of iron-
ore properties.
" The method of making the assessment of properties on the ranges was the
outcome of experience. The attempts of assessors to value iron-ore properties
were accompanied by complaints of inequalities among mine owners that finally
created a sort of de facto board of equalization, which determined the value of
the different operating mines according to output. This system, while unsatis-
factory from the point of view of equalization of values, was accepted by the
mining men as more satisfactory than the valuation made under the assessing
machinery of the local governments. Every two years the mining representa-
tives met at Duluth and distributed the real property assessment over the
operating mines according to their output. The small mines were the losers
and the larger and more valuable mines the gainers by this method of valua-
tion. Prior to 1897 the tax levied upon the mines of the State was at the rate
of 1 cent per ton of output. This law was repealed and the tax determined
by the assessed value of the mining property. The commission therefore had
no criteron by which to determine the values. Prior to 1897 the tonnage tax,
after that date the valuations, continually shifted with the growth of the
properties, and the distribution to mines according to output prevented the estab-
lishment of any principle of local assessment.
lie 1: * * * ifi *
" The problem before the tax commission was how to assess these properties,
vast in extent and great in value. The first step was to secure information.
Consultation with State officers, the collection of books, pamphlets, maps, and
newspaper clippings upon the iron properties, the securing of State documents
and the reports of committees, were the first steps toward getting information.
After careful consideration of the situation and the problems involved, the
commission sent, under date of June 18, a list of questions to the various com-
panies engaged in the business of iron mining in the State of Minnesota.
These questions were so framed as to cover every important phase of the
mining industry, and the hope and expectation was to secure a large amount
of information regarding the cost of operating, output, nature, and character
of ores, method of mining, and nature of ownership.
*******
"After a great deal of correspondence, the commission received late In
August returns from practically every mining company engaged in operation
and from individuals owning iron properties. This data was supplemented by
information gathered by the commission during its visit to the range in the
3468 UNITED STATES STEEL CORPORATION.
first half of August. Through this visit the commission became familiar with
types and locations of mines, character of ore, and general conditions existing
in the mining business.
" Meantime the questions of classiiication, analysis, and value of these prop-
erties were being considered carefully by the commission. The differences
existing between mines in their geological conditions, difl5culty of mining,
character of the ore, and the nature of mining rights made it impossible to
consider all mineral properties as belonging to the same group. For the pur-
pose of making some distinction between the different mines and prospects,
five grades of operating mines were created and four grades of prospects.
These grades were determined by facts secured through the data furnished by
the mining companies and the observations of the commission. The first grade
of operating mines included those that were operated at a low cost per ton and
were putting out good grades of ore. A distinction was made between the
mines in the first grade in that practically no mines approached the Mahoning
and Hull-Rust in ease of operation and character of ore. Somewhat more
expensively operated mines, though distinctly above the second grade, were
placed in the 1-b class. There were mines like tthe Biwabik, Mountain Iron,
Burt-Pool, and Morris. The remaining grades of operating mines were de-
termined by the cost of operation, returns, and grades of ore. The prospect
group was divided into four classes, depending upon the state of their advance-
ment toward an operating mine; thus, the first class of prospects were prop-
erties on the verge of mining operations. Good examples of this class are to
be found in the instances of the Gilbert, Canesteo, Frantz, Iroquois, and cer-
tain parts of the Hull-Rust and Mahoning properties. The second class pros-
pects were those properties that had not been advanced so far on the road to
operating mines, but upon which drilling and testing had demonstrated the
presence of ore in paying quantities. The third class consisted of forties in
the neighborhood of good tonnage properties. In the fourth class the ore
land acreage was placed, since it had a more or less speculative value.
" The last of August the commission sent notice to the owners of Iron-ore
properties calling upon them to appear on September 5 at 10 a. m. in the rooms
of the tax commission at the capitol in St. Paul and show cause why the valu-
ations of the mining properties should not be materially Increased. At the
meeting, which was attended by representatives of practically all mine owners
and operators, the commission piesented its scheme of classification and a
tentative list of valuations. Frank discussion and criticism followed, bringing
out many valuable suggestions and much new information. The hearing was
continued over to the following Monday, when the commission presented the
final classification, rates, and valuation of the iron-ore properties.
" The factors taken under consideration in the valuation of mining properties
are as follows: (1) Geological conditions, (2) difficulty of mining, (3) char-
acter of the ore, (4) character of mining rights.
" Mining properties are divided into two grand groups — operating mines and
prospects.
" For the purpose of determining the valuation of operating mines, they are
classed under five groups, as follows:
" Class 1. (a) Properties where mining is comparatively Inexpensive and
the ore high grade. (6) Properties where mining is comparatively inexpensive
and the ore of lower grade.
" Class 2. Properties where mining is somewhat more difficult and mining
cost greater than in the case of class 1, and the ore of mixed grade.
" Class 3. Underground properties where the expense of mining Is compara-
tively low for that kind of mining and the ore of high grade.
" Class 4. Underground or milling-pit properties of distinctly second grade,
determined by a higher cost of mining and lower grade of ore than in the
case of class 3.
" Class 5. Mines of inferior character where expenses of operation are high.
" Prospects are classed under four groups, as follows :
" Class 1. Lands that have been drilled and test-pitted, and where stripping
of the overburden has been carried on. In other words, where the property
is about to become a mine.
"Class 2. Lands that have been drilled and test-pitted, and ore found In
some abundance.
" Class 3. Unexplored lands near good mining properties.
" Class 4. Lands that have not been explored, but are in the well-known ore
belt
LJkJ ij J.A2JJ2AJ-t
ttctBPOKATION.
3469
" Rates of valuation.
[Per ton In the ground.]
Operating mines |>K
Prospects
Class 1.
Cents.
33
30
15
Class 2.
Cents.
27
10
Class 3.
Cents.
23
8
Class 4.
Class 5.
Cents. Cents.
19
$3 to $50 per acre.
"In the determination of the rates the commission was confronted by a
number of serious problems — how to get a taxable valuation of iron properties
that would be fair to the State and to the owners of the properties. The rates
arrived at were in the main determined by several factors :
" First. The difference between the cost of mining and the average price of
ore during the last three years.
" Second. By the present worth "of the difference for a period of 20 years
on a basis of 4 per cent rate of interest.
" Third. By the percentage of the assessed valuation of real property in the
State to the full value of such property.
" The fact that the differences in mining cost vary greatly with the different
properties, due to management, condition of the mine, presence of water, depth
of ore, character of equipment, grades and location of ores, required the creat-
ing of more than one class of mining properties. The classes referred to in the
memorandum above were created .and the rates established for them were de-
termined as far as possible by the differences between mines in cost of opera-
tion, difficulty of mining, and grade of ore. This method of valuation left much
to be desired, but no better one was suggested at the hearing of mine owners,
and it was the best that the commission could do under the ad valorem require-
ments of the law."
Summary of results. — Having decided upon classification and rates, the. com-
mission proceeded to list and classify the 2,116 different mines, mineral prop-
erties, and prospects. The reports submitted by the mining companies and
owners of Iron properties in St. Louis and Itasca Counties gave a total tonnage
of 1,191,969,757 tons. The commission assessed the tonnage properties at
$186,720,026 and acreage prospects and miscellaneous iron lands at $4,986,656,
making a total assessment for 1907 of $191,706,682, distributed among the dif-
ferent classes of mines and prospects as follows:
Summary of tonnages and, valuations hy classes, 1907.
Class.
Tonnage.
Eate.
Valuation.
Mines
1
lb
2
3
4
S
1
2
3
43,185,685
66,442,923
25,176,067
138,845,839
91,494,762
105,821,134
271,863,523
204,635,249
244,504,575.
33
30
27
23
19
14
15
10
8
114,251,276
19,932,876
6,797,538
32,134,497
17,653,975
14,561,749
40, 779, 516
Prospects .,,
TTnclnAW*!! mjnp^
20,483,518
19,490,345
634, 736
Acreage prospects. . .
998,000
2,257,700
Total
1,191,969,767
189,975,726
Other lands in iron belt
1, 730, 956
Total assessment . ...
191, 706, 682
The total assessment for 1907 was distributed as follows :
St. Louis County $177,699,562
Itasca County 14,007,120
191, 706, 682
31572°— No. 52—12
3470
UNITED STATES STEEiTTAjtCFUKSXT^Jirr-
Summary of 1908 assessment. — The 1908 assessment of mineral properties
was based upon tonnage estimates hastily prepared by the mining companies to
meet the immediate needs of the situation. In addition, the tax commission
had a very limited time in which to classify the different mines and mineral
properties. Some errors were made in both tonnage estimates and classifica-
tion which were corrected in the 190S assessment. While the reclassification
resulted in a tonnage increase of 1,219,202 tons, there was a net decrease of
$11,495,989 in the assessed value of mineral properties as compared with 1907,
the total assessment for 1908 being $180,210,693. This amount was distributed
among the different classes of mines and prospects as follows:
Summary of tonnages and valuations ty classes, 1908.
Class.
Tonnage.
Rate.
Valuation.
Mines
1
lb
2
■ 3
4
5
1
2
3
35,245,360
59,450,318
32,837,331
99,173,967
63,708,162
90,619.746
279, 980, 702
243,760,744
298,512,629
33
30
27
23
19
14
15
10
8
til, 630, 969
17,835,095
8,866,079
22,810,011
10,204,562
12,672,766
41, 997. 100
24, 376; 067
23,880,993
2,004,500
Total
1.193,188,959
176,278,132
3,932,561
Total assessment
180 210 693
The total assessment for 1908 was distributed as follows :
St. Louis County $164,381,474
Ttasca County 15, 829, 219
ISO, 210, 693
The assessment of 1909. — In 1909 a rearrangement of classes was made, the
various mineral properties being classified as active mines, reserves, and sub-
reserves. The new classes and rates were as follows:
Active
mines.
Reserves.
Subre-
sen'es.
Class 1
Cents.
33
30
27
23
19
14
Cents.
21
18
15
11
10
8
CenU.
15
Class 2
10
Class 3
Class4
Class 5
Class 6
The only change made in the active mines in the new classification was in the
class number, lb being eliminated, and the classes numbered from 1 to 6
consecutively. Considerable change, however, was made in the reserve classes,
five new classes being added and a substantial Increase in rates made in two
other classes. It was felt that certain reserves adjacent to active mines and
shortly to become shipping mines should talie a higher rate than the one Jrst
imposed by the commission. Subreserves are a secondary class of reserves
somewhat more remote from certain classes of active mmes than reserves.
A number of prospects now called reserves became active mines during 1908
and were reclassified In 1909, taking the higher rate imposed on shipping mines.
New tonnages were added and a number of new properties were placed in tlie
reserve or prospect class and assessed accordingly. Of the total tonnage
increase of 117.001,235 tons over 1908, 12,522,887 tons were added as the result
of the work of the school of mines In verifying estimates, the balance coming
from corrected reports, additional esplorations, and new discoveries. The total
iisspssod values of tonnages, reserves. .Tud other lands in the iron belt amounted
lo $204,520,130. being an incvea.se of .f24.:-!ir).440 over 1908.
A detailed statement showing tonnages and valuations by classes and by
assessment districts follows:
UNITED STATES STEEL. COEPOEATION.
3471
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3475
3474 tJNTTED STATES STEEL COEPOEATION.
Summary of tonnages and vaUuation ly classes, 1909.
Class.
Tonnage.
Eato.
Valuation.
1
2
3
4
S
6
1
2
3
4
6
6
35,800,413
60,728,440
34,728,645
114,027,524
52,824,411
105,893,662
147,980,020
188,898
156,624,294
36,782,952
234,646,425
329,964,510
33
30
27
23
19
14
21
18
15
11
10
8
$11,814,136
18,218,530
9,376,734
26,226,329
10,036,637
14,825,107
31,075,803
34,001
23,493,641
4,046,124
23,464,639
26,397,157
1,684,740
Total . . -
1,310,190,194
200,593,578
3,932,561
Total assessment
204,526,139
The total assessment for 1909 was distributed as follows :
St. Louis County $187,193,557
Itasca County 17, 332, 582
204, 526, 139
The 1910 assessment. — Olianges were made in the classification of a number
of mineral properties in 1910. Several reserves had become shipping mines
during 1909 and were reclassed and assessed as active mines in 1910. New
tonnages, de\eloped by explorations and through the work of the school of
mines, were added to the assessment rolls. The total increase in tonnage
amounted to 66,690,593 tons, from which 29,284,496 tons were deducted for
shipments during the year, making a net tonnage increase over 3909 of
37,406,907 tons.
New rates, 1910. — After the work of reclassification had been completed and
new tonnages and reserves had been added to the assessment rolls, the com-
mission made a general raise of 5 per cent on all mines, reserves and other
lands in the ore belt. Under this increase the rates used for determining the
taxable value of iron ore in the ground in 1910 were as follows:
Active
mines.
Eeserves.
Sub-
reserves.
Class 1
Cents.
34.65
31.50
28.35
24.15
19.95
14.70
Cents.
22.05
18.90
15.75
11.55
10.50
8.40
Cents.
15.75
Class 2
10.50
Class 3
Class 4
Class 5
ClpAq fi
The total assessed values of mines, reserves, and other lands In the ore belt
under the new rates adopted in 1910 amounted to $224,669,845, being a net in-
crease of $20,143,706 over 1909, and a total increase of $44,459,152, or 24.7
per cent over 190S.
,\ detailed statement showing tonnages and valuations by classes and by
assessment districts follows:
V JN IXJiLt aXiSTE5~5TirEirT!0KP0EATI0N.
3475
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3477
3478
UNITED STATES STEEL CORPORATlOlf.
Sunvmary of tonnages and valuations by classes, 1910.
Class.
Tonnage.
Eate.(,
Valuation.
Mines
1
2
3
4
5
6
1
2
3
4
6
6
60,008,286
57,102,156
39,616,084
161,627,670
62,656,242
114,464,801
129,056,232
188,898
144,242,484
2,963,833
282,659,633
313,010,072
34.65
31.50
28.35
24.16
19.95
14.70
22.05
18.90
15.76
11.55
10.50
8.40
J17,327,g?0
17,987,177
11,231,161
39,033,078
10,504,921
16,826,328
28,466,899
35,702
22,718,190
342,322
29,670,251
26,289,139
843,270
Reserves and subreserves
Total
1,347,596,291
221,266,308
3,403,537
224,669,845
1 Five per cent increase over 1909 in all classes.
The total assessment for 3910 was distributed as follows:
St. Louis County $206,869,908
Itasca County 17, 799, 937
224, 669, 845
The following is a comparative summary of tonnages and tonnage valuations,
together with the assessed vahiatiou of other lands in the iron-ore belt and
the total assessed values for the years 1906 to 1910, Inclusive:
Comparative summary of tonnages and valuations, 1906-1910.
Years.
Total
tonnages.
Valuation
tonnage.
Valuation
other lands.
Total
valuation.
19061
164,486,409
191,706,682
180,210,693
204,626,139
224,069,846
1907
1,191,969,767
1,193,188,969
1,310,190,194
1,347,596,291
$186,085,290
174,263,632
199,008,838
220,423,038
$5,621,392
5,947,061
5,517,301
4,246,807
1908. . . .
1909
1910
1 No tonnage estimates.
Average assessed valve per ton. — The following table shows the tonnage and
valuation of mines and reserves separately, and the average assessed value per
ton for the years 1907, 1808, 1909, and 1910 :
Average assessed value per ton of mines and reserves, 1907-1910.
Mines.
lieserves.
Year.
Tonnage.
Valuation.
Average
per ton.
Tonnage.
Valuation.
Average
per ton.
1907
470,966,410
370,934,884
404,003,095
476,476,239
$105,331,911
84,019,472
90,497,473
112,910,536
22.4
22.9
22.4
23.8
721,003,347
822,264,076
906,187,099
872,121,052
$80,763,379
90,254,160
108,611,366
107,612,503
1908
1909..
11 9
1910
11.3
The foregoing summaries of assessed values do not include the assessed
value of stock piles or the other personal property assessment of the various
mining comptinies and mine operators, which amounts approximately to
$4,500,000 annually.
UNITED STATES STEEL CORPORATION.
3479
Ore shipments. — The following table gives the ore shipments from St. Louis
and Itasca Counties for the past five years :
Tons.
1906 25, 611, 384
190T 29, 180, 975
1908 18, 098, 894
1909 29, 284. 496
1910 30, 308, 583
State mineral leases. — Under chapter 14, Laws of 1907, the provisions of law
relating to the issuing of permits to explore State lands for minerals were
repealed.
No mineral leases have been issued since February 13, 1908. Up to that date
a total of 872 mineral leases had been Issued by the State, of which number;
276' were still in force when the last assessment was made. May 1, 1910. Of
this number tonnages have been developed on only 49 leases. The total pay-
ments received by the State from mineral leases and contracts and royalty on
iron ore to August 1, 1910, amounted to $1,902,780.12.
The following table shows the number of State mineral leases upon which
tonnages have been actually developed on the different classes of State lands,
the estimated tonnage and the assessed value of the same.
Tonnage and assessed value of 49 State mineral leases, 1910.
Number
of leases.
Tonnage.
Assessed
value.
34
7
8
105,294,969
8,844,871
31,059,977
113,460,239
University lands
867,505
2, 717, 568
Total
49
145,199,817
17,035,312
Conclusion. — Since the organization of the tax commission in 1907, the as-
sessed value of mineral lands has increased from $64,486,409 to $224,669,845,
a gain of $160,183,436, or 248 per cent, in four years. In 1906 the assessed
value of mineral properties represented 8.5 per cent of the total real estate
assessment of the entire State, while in 1910 it had increased to 22.2 per cent
of the total. This large increase is due in part to the opening up of new
mines and to the development of new tonnages by explorations, and in part
to the comprehensive method inaugurated and followed by the commission of
ascertaining and verifying tonnages and values for purposes of taxation.
It has been the policy of the commission to keep in close touch at all times
with development work on the Iron ranges. We are thus enabled to keep fully
informed of new discoveries and new tonnages, of changes from reservii»j to
active mines, and of many other matters of importance affecting mineral values.
Our records contain complete data of each 40-acre tract of land in the iron-ore
belt and when drilled or test-pitted show grades, tonnages, classification, and
assessed values. Mining companies and owners of mineral properties that
have been explored readily respond to our requests for information relating
to their properties, and in nearly every case furnish us with blue prints
showing explorations and analyses of ore samples, for which courtesy we here
desire to make due acknowledgment.
We believe that the commission has the mining situation well in hand and
that the method adopted of classifying and valuing the various mineral prop-
erties and of verifying tonnage estimates and grades enables us to determine
values with a reasonable degree of accuracy and to equitably assess the great
Iron-ore deposits of the State as rapidly as explorations furnish us with the
necessary data.
> Forty-two of these were canceled Nov. 1, 1910.
3480 UNITED STATES STEEL OOEPOBATION.
THE BASIS OF VALUATION.
The most embarrassing matter connected with the administration of tlie
existing tax laws of this State Is that of the valuation of taxable property.
Before the adoption of the " wide-open " amendment of 1906 the constitution
provided that property should be taxed " according to its true value in money."
The statutes (sec. 810, Revised Laws, 1905) enacted prior to the amendment
provide that " all property shall be assessed at its true and full value in
money." The adoption of the constitutional amendment renders it unnecessary
at this time to discuss whether the words " according to " in the constitution as
it was are synonymous with the word "at" in the statute; that is, whether an
assessment of property must necessarily be " at " its true value in order to be
" according to " that value. While the amended constitution provides merely
that " taxes shall be uniform upon the same class of subjects," it is silent upon
the matter of assessment. But the statute remains requiring that property
shall be assessed at its " true and full value."
In defiant contrast to this unequivocal mandate of the law is the notorious
fact that never since the soil of Minnesota has been taxable has this law been
obeyed. Property has not been assessed at its true or full value, nor has any
serious attempt ever been made to so assess it. The uniform, universal custom
throughout the entire State has been to assess property at from 25 to 50 per
cent of its actual value, and this custom has had the long-continued approval
of the people, the silent support of the law-making and the acquiescence of the
law-enforcing departments of the State government. The truth might as well
be frankly acknowledged that it is a dead letter, a stillborn statute unenforced
and unenforceable. Any attempt to comply with its provisions would be revolu-
tionary and so contrary to the fixed and uniform custom of a half century that
it would arouse the opposition and indignation of the people.
The conimisaion's recommeniiaUon to the last legislature. — In its report two
years ago this commission called the attention of the legislature to the matter
and formulated and recommended a bill providing that property subject to tbe
general property tax should be valued at its true and full value, which should
be entered opposite each item on the assessment rolls, and should be assessed
at 50 per cent of such true and full value. Such assessed value should in all
cases be construed and taken as the value of such property for purposes of
taxation, and should be the values upon which the tax levy should be made.
The phraseology of this bill is peculiar. At the time it was prepared the
validity of the constitutional amendment was pending in the supreme court,
iind it was deemed prudent in order to meet the possibility that the amendment
might be declared invalid to make the bill harmonize with the provisions of
the constitution requiring property to be " taxed according to its true value in
money," the theory being that if property was assessed at a fixed percentage
of its full value such assessment, being upon the basis of, would therefore bo
" according to " such value. While not satisfied of the correctness of this
Iheoi-y, the commission deemed it best to give it a trial in order to relieve a
situation almost intolerable.
This bill also closely followed the law of Iowa providing that "all property
subject to taxation shall be valued at its actual value, which shall be entered
opposite each item, and shall be assessed at 25 per cent of such actual value."
The commission at that tinie, in view of the doubt then existing as to the
adoption of the constitutional amendment, deemed it wise to follow the prece-
dent set in other States and accept the form of statute which had there been
tested in the courts.
Action lit/ the legislature. — This bill was amended in the legislature by reduc-
ing the specified percentage from 50 to 40 per cent and In that condition was
ultimately defeated. But the legislature, recognizing the embarrassments of
the situation, passed the following concurrent resolution, viz :
" Be it resolved hy the senate, the house of representatives concurring:
That, whereas the basis of valuation of property for taxation in this State
has actually been other than its true value, and the financial affairs of the
various counties, municipalities, and State institutions have been regulated
so as to accord with the present taxable valuation of property; and
" Whereas there is legislation pending looking to the establishment of a more
uniform basis of actual valuation for taxation, and such a basis would affect
the affairs of State institutions, municipalities, and counties: Therefore be it
resolved by the senate, the house of representatives concurring :
ur<L±au orAXiiits BXJiJiJj (JOKPOEATION. 3481
" That the State tax commission be, and It hereby is, requested to take into
consideration in any regulation it may malie as to the valuation of property
for taxation the values which have heretofore been given such property, and
that the commission so act as not to create any radical changes in the present
assessed valuation, such as would derange the relations which have been
created and now exist between the incomes and salaries paid by different
institutions, municipalities, and public offices throughout the State, and thereby
allow the present relative values to continue until the next session of the
legislature."
In conformity with this resolution the commission in its equalization of
assessments in 1909 and 1910 made no departure from the custom so long in
vogue.
An enibarrassing situation. — The troublesome condition again confronts us
and is productive of increasing embarrassment in every direction. Letters from
local assessors and county officers are constantly being received asking for in-
structions or suggestions as to what percentage should be used in the valuation
of property for taxation. The only reply which the commission has been able
to make was to call attention to the statute prescribing that property should be
assessed at its full value and to the legislative resolution requesting that It
should not be so assessed.
Necessity for immediate action. — We earnestly protest that the matter should
no longer be left in the chaotic and contradictory condition in which it is at
the present time. Either a firm and strenuous effort should be made to raise
all assessments to the full value of the property assessed, or provision should
be made by law providing for its assessment at some specified per cent of such
value, or all the provisions of the statutes (there are many such besides sec.
810, Revised Laws, 1905) should be repealed, leaving the whole matter in the
discretion of the tax commission. The situation, should be squarely met and
the question solved without evasion or further delay. The adoption of the
constitutional amendment leaves the whole matter to the judgment of the
legislature, unfettered by limitations or restrictions.
In the opinion of the commission it is easier and better to make the laws
conform to the long-established and unbroken custom of the people than by
drastic legislation to attempt to make the custom conform to a discredited and
ignored statute.
Reasons for proposed change. — There are three principal reasons why the
assessment of taxable property should be put at a certain percentage of in-
stead of at its full value, viz :
First The indebtedness of towns, cities, and villages and the salaries of
certain county officers are limited and determined by certain fixed percentages
of the assessed valuation of the district affected. To arbitrarily increase and
more than double this assessed valuation would result in largely increasing the
debt limit in such municipalities and automatically raising and in some cases
more than doubling such salaries.
Second. Certain special fixed tax levies for school and other State purposes
are likewise based upon the annual assessment of property in the State, and
would if such assessment were raised to full value enormously increase the
taxes paid by the people and the revenues received for those specific purposes.
The debt limitations, salaries, and special-tax rates above mentioned were
fixed and based upon the customary method of assessment prevailing through-
out the State when they were enacted, and not upon the full-value assessment
required by law.
Third. A fixed percentage of true value and not the full value itself con-
forms to the custom and habit which has prevailed in this State for the past
half century.
Recommendations. — The Important thing is that this matter should be defi-
nitely settled by law. This commission has no hesitancy in recommending that
the assessment be placed upon the fixed basis of 50 per cent of the full value.
It believes that such basis can substantially be maintained throughout the en-
tire State. It has therefore" reformulated and hereby submits and recommends
the passage of the bill designated as Exhibit A in the appendix to this report.
The commission is not in favor of merely repealing the true and full value
provisions In the statutes, and leaving them silent upon the subject. The
effect of such proceeding would be practically to leave the basis of the assess-
ment of property in the hands of the tax commission without any restrictions
or limitations whatever. The commission does not seek and should not be
given any such broad and undefined powers.
3482 UNITED STATES S'-..^:.^^ v.v.^.^ .,- ^^
Nor is the commission in favor of attempting to enforce the provisions of
existing law. It fully realizes tlie annoyances, difficulties, and evil effects
wlilcli must necessarily attend any such action on its part. It recognizes the
fact that such proceeding would be revolutionary and so antagonistic to estab-
lished custom as to be productive of great popular dissatisfaction.
But if the legislature shall be of the opinion that the existing law shall re-
main imchanged and that assessments shall be made at the full and true value
of the property assessed, the commission will reluctantly but in good faith
endeavor to enforce the law as it is left by the legislature regardless of its
effect upon the debt limit, the salaries, and special taxes and popular disap-
proval above mentioned.
We leave the subject to the wisdom and the courage of the legislature.
IKON ORE, PIG IIlO:h^, AND STEEL.
By Ernest F. Burchaed.
INTRODUCTION.
Although the iron and steel industry in the United States in 1910
broke all previous records by a small margin, the total volume of
business was not as great as was anticipated at the beginning of the
year. The recovery in 1909 from the depression of 1908 was so rapid
that preparations for much larger productions of iron ore and pig iron
in 1910 were made than were necessary; consequently there was an
overproduction, and a gradual depression marked the close of the year.
The curve showing pig iron production by months (see fig. 2) affords
a graphic index of the trend of the pig-iron industry from the begin-
ning to the end of the year and also a comparison of the conditions
in 1910 with those in 1907, 1908, and 1909. From the beginning of the
year there was a steady dechne in production, with the exception of
small rallies in March and October, neither of which brought the pro-
duction up to that indicated at the beginning of the preceding month.
The daily production for December, 1910, averaged about 67,000
tons, as compared with 85,000 tons in December, 1909. The produc-
tion for December, 1910, was thus down nearly to the level of that for
December, 1908. On December 31, 1910, there were 206 furnaces in
blast out of a total of 473; on the same date in 1909 there were 338
furnaces in blast out of a total of 469. As a consequence of the active
demand the iron-ore output exceeded that of 1909 by 5,734,297 long
tons, and that of 1907, which was previously the record year, by
5,169,115 tons. The total quantity of iron ore marketed in 1910, for
the purpose of ma;king pig iron — that is, not including stocks left at
mines nor iron ore used for fluxing other metallic ores nor in the
manufacture of paints — was 56,889,734 long tons, as compared with
51,155,437 tons m 1909 and with 35,924,771 tons in 1908; the out-
put of pig iron in 1910 was 27,303,567 long tons, as compared with
25,795,471 tons in 1909 and with 15,936,018 tons in 1908.
The ore reported as having been used for fluxing other metallic
ores during 1910 amounted to 125,172 long tons, valued at $446,996,
as compared with 118,892 long tons in 1909, valued at $297,594.
The quantity of iron ore sold by the miners for paint during 1910 was
reported as 14,798 long tons, valued at $40,101. Prices of iron and
steel products in 1910 were at their highest levels at the beginning of
the year, but they began to dechne early in February, and practically
everything but rails dechned steadily until August or later, some of
the products seUing at the lowest prices in December. The f oUowing
price reductions per ton occurred from the first week in January to
3483
3484
UNITED STATES STEEi3~UUiCFt7iwrTXuirr^
December 1:^ Bessemer pig iron, $2; basic pig iron, $3.75; Bessemer
billets, $5; open-hearth bi]Iets,$6; wire nails, $3; cut nails, $4, etc.
The increase in the production of iron ore in 1910 over that of 1909
was 11.21 per cent, and the increase in the production of pig iron and
steel was about 5.85 per cent and 8.93 per cent, respectively.
1870
60,000,000 1 —
55,000,000
50,000,000
45,000,000
40,000,000
2 35,000,000
c: 30,000,000
^25,OOQOO0
20.000,000
5,000,000
FiBDKE 1.— Curve showing the production of iron ore, pig iron, and steel in the United States, 1870-1910,
in long tons.
Figure 1 shows graphically the production of iron ore, pig iron, and
steel since 1870, and illustrates the major fluctuations that have oc-
curred.
' Iron Trade Review, Jan. 6, 1911.
UNITED STATES STEEL COKPOEATION.
3485
IRON - ORE INDUSTRY OF THE UNITED STATES.
PBODTTCTION OF IRON OBB BY COMMEBCIAL DISTBICTS.
The iron ore marketed in the United States in 1910 amounted to
56,889,734 long tons, valued at $140,735,607 at the mines, as com-
?ni^^ -^T^- Sl'155,437 long tons, valued at $109,964,903, produced in
1909. Ihis represents an increase of 11.21 per cent in tonnage and
of 27.98 per cent in value. The average price per ton for the whole
country m 1910 was $2.47, as compared with $2.15 in 1909.
Iron ore was mined in 28 States during 1910. Of these, four
States — Idaho, Montana, Nevada, and Utah — produced ores for flux-
ing only; part of Colorado's production was for fluxing and part for
pig iron; the rest produced ores for blast furnace use.
The various States in which iron ore occurs may be conveniently
grouped into six commercial districts, namely:
1. Northeastern district: Including Massachusetts, Connecticut, New
York, New Jersey, Pennsylvania, and Ohio.
2. Southeastern district: Including Maryland, the Virginias Ken-
tucky, Tennessee, North Carolina, Georgia, and Alabama. '
3. Lake Superior district: Including Michigan, Wisconsin, and Min-
nesota.
4 Mississippi VaUey district: Including Iowa, Missouri, Arkansas,
and Texas.
5. Boclcy Mountain district: Including Idaho, Montana, Wyoming
Colorado, New Mexico, Utah, and Nevada.
6. Pacific slope district: Including Washington and CaHfornia.
Each of these districts may be subdivided into mining districts and
the ores classified with regard to variety and to distribution of de-
posits. These subdivisions are discussed in another section. The
Lake Superior is by far the most important of these districts, and is
followed m order hj the southeastern district and the northeastern
district; the Mississippi Valley and the western districts are of minor
importance. The following table shows the relative output of iron
ore m each of the commercial districts during 1908, 1909, and 1910:
Production oj iron ore in the United States, by commercial districts, in 1908, 1909, and
1910, in long tons.
District.
Northeastern
Southeastern
Lake Superior
Mississippi Valley,
Rocky Mountain..
Pacific slope
Total
1908.
Quantity.
1,590,098
6,484,821
28,225,412
154,380
470,060
C)
35,924,771
Percent-
age of
total.
4.42
15.27
78.67
.43
1.31
100. 00
Quantity.
2,280,741
6,197,717
41,942,969
96,428
637,682
(■=)
51, 155,437
Percent-
age ot
total.
4.46
12.11
81.99
.19
1.26
1910.
Quantity.
2,605,318
6,894,464
46,420,226
107,876
861,850
W
66,889,734
Percent-
age of
total.
o Pacific slope included in Rocky Moimtain district.
31572— No. 52—12 3
4.68
12.12
81.60
.19
1.51
3450
UNITED STATKS STEJil, UUH.i'UlfATlUJN .
PBODTJCTIOKT OF XRON ORE BY STATES.
The following table gives a comparison of the iron-ore production,
by States, for 1909 and 1910, showing increase and decrease and the
percentage of increase and decrease in the several States :
Quantity and value oj iron ore produced in the United States, 1909 and 1910, by States.
state.
1909.
Quantity,
in long
tons.
Value.
Quantity,
in long
tons.
Value.
Increase (+} or de-
crease (— ) m 1910.
Quantity,
in long
tons.
Percentage of
increase (+) or
decrease (— ) in
1910.
Quan-
tity.
Value.
Alabama
California,^ C o 1 o -
rado. New Mexico,
Washington, and
Wyoming
Connecticut and
Massachusetts
Georgia
Kentucky and West
Virginia
Maryland
Michigan
Minnesota
Missouri
New Jersey
New York
North Carolina
Ohio
Pennsylvania
Teimessee
Texas
Virginia
Wisconsin
1,321,252
637,682
38,272
221,016
74,769
23,888
11,900,384
28,97,5,149
89,954
543,720
1,015,333
61,150
16,627
666,889
657,795
6,474
837,847
1,067,436
$4,996,465
646,082
141,274
332,478
110,
46,
32,282,
60,253;
210,
1,007,
3,072;
107,
28,
792,
907,
9,
1,693,
2,727,
4,801,276
Si, 1S,S
313,878
64,347
14,062
1,303,906
,966,769
78,341
621,832
,287,209
65,278
22,320
739,799
732,247
29,535
903,377
,149,551
56,083,722
+ 480,023
-1-51,087,267
+ 11.11
877,223
121,306
482,669
86,
29,
41,393,
78,462,
168,
1,582,
3,848,
114,
35,
911,
1,048,
34,
1,845,
3,610,
224,268
- 4,114
-I- 92,862
10,422
9,826
403,522
991,620
11,613
21,888
271,876
4,128
6,793
72,910
74,462
23,061
65,630
82,116
+ 231,141
- 19,968
-I- 150,181
24,202
17,081
110,963
209,246
42, 166
24,790
776,360
7,224
7,319
119,175
141,041
24,685
151,056
882,943
+18
+ 35. 17
10.75
-I- 42.02
- 13.94
41.13
-I- 11.79
-t- 10.32
- 1Z91
4,03
-I- 26.78
-I- 6.76
+ 35.05
-I- 10.93
+ 11.32
+S56.2D
+ 7.
7.
+ 21.76
-I- 35.78
- 14. 13
-1-45.17
■ 21.94
■ 37.79
+ 28.22
+ 30.22
19.99
1.54
-f 25.27
+ 6.75
-I- 25, M
-I- 15.03
-I- 15.55
-f 264. 92
-t- 8.97
-I- 32,37
Total 51, 156, 437 109, 904, 903 56, 889, 734 140, 735, 607 4-5, 734, 297 -(-30,770, 704 -|- 11. 21
-I- 27.98
a No production from California in 1909.
UNITED STATES STEEL. CORPORATION.
3487
In the following table the States are arranged according to their
rank as producers in 1909 and 1910, with regard to both the quantity
and the value of the iron ore produced:
Rank of iron-ore producing States in 1909' and 1910, with quantity and value oj product
and percentage of each.
1909.
State.
Quantity,
in long tons.
Production.
Per-
centage
of total
produc-
tion.
Rank.
State.
Value.
Per-
centage
of total
value.
Miimesota
Michigan
Alabama
Wisconsin
New York
Virginia
Pennsylvania
Tennessee
Colorado, New Mexico,
Washington, and
Wyoming
New Jersey
Georgia
Missouri
Kentucky and West
Virginia
North Carolina
Connecticut and Mas-
sachusetts
Maryland
Ohio
Texas
28,975,149
11,900,384
4,321,252
1,067,436
1,015,333
837,847
666,889
657,795
637,882
543,720
221,016
89,954
74,769
61,150
38,272
23,888
16,527
6,474
56.64
23.26
8.46
2.09
1.98
1.64
1.30
1.29
1.26
1.06
.43
.18
.15
.12
.07
.05
.03
.01
Minnesota
Michigan
Alabama
New York
Wisconsin
Virginia
New Jersey
Tennessee
Pennsylvania
Colorado, New Mexico,
Washington, and
Wyoming
Georgia
Missouri
Connecticut and Mas-
sachusetts
Kentucky and West
Virginia
North Carolina
Maryland
Ohio
Texas
$00,253,314
32,282,622
4,996,455
3,072,323
2,727,406
1,693,188
1,607,003
907,282
792,672
332,478
210,853
141,274
110,287
107,013
46,786
28,547
9,318
54.79
29.36
4.54
2.79
2.48
1.64
1.46
.83
.72
.59
.30
.19
.13
.10
.10
.04
.03
.01
Total 51,155,437
Total 109,964
100.00
1910.
Minnesota
Michigan
Alabama
New York
Wisconsin
Virginia
California, Colorado,
New Mexico, Wash-
ington, and Wyo-
mmg
Pennsylvania
Tennessee
New Jersey
Georgia
Missouri
North Carolina
Kentucky and West
Virginia
Connecticut and Mas-
sachusetts
Texas
Ohio
Maryland
Total
31,966,769
13,303,906
4,801,275
1, 287, 209
1,149,651
903,377
861,850
1.52
739,799
1.30
732,247
1.29
621,832
.92
313,878
.65
78,341
.14
65,278
.11
64,347
34,158
29,535
22,320
14,062
66,889,734
56.19
23.39
8.44
2.26
2.02
1.59
100.00
Minnesota...
Michigan
Alabama
New York..
Wisconsin. .
Virginia
New Jersey.
Pennsylvania
California, Colorado,
New Mexico, Wash-
ington, and Wyo-
mmg
Georgia
Missouri
Connecticut and Mas-
sachusetts
North Carolina
Kentucky and West
Virginia
Ohio
Texas
Maryland
Total 140,735,607
$78,462,560
41,393,586
6,083,722
3,848,683
3,610,349
1,845,144
1,582,213
1,048,323
911,847
877,223
482,659
168,697
121,306
114,237
86,085
36,866
34,003
29,105
56.75
29.41
4.32
2.74
2.57
1.31
1.12
.75
.65
.62
.34
.12
.02
.02
100.00
;m,s«
UNI'I'I':!) STA'I I'.S S'l"
PRODUCTION OV IRON ORE BY VABIBTIES BY STATES AND MININO
DISTRICTS.
Iron juiiKinilN iiin claHsiliiul ms siilpliichw, ox'kIoh, ciulxmal.oN, hIII-
ciilcs, t\ir.., of w hich only (Jio oxidcN iiiul (.li<i <'iuI)(Hiii((ih iiio imod in the
iioii luul sl(t(il indiisliy, <i.\c(i|)l, ii. vdiy hiuiiII (|iiiinlil y <>f l>.y-|>i(i(lii('|,
Irom riiilpliido ()i(w iis(mI in lu'id jniinid'iicl iifo. 'Hid nvm of ii'oii aid
t^cnorally cltiKsdd uihI<m' four ImndH:
I. llimiilitc. Includinp; nil l.lid unliydriiiiM H('ni|iiiiixi(l('H (l''i'a< •;, lliiuiidMciil jicr-
(■(•n(ii|.;(i iif iron, 70). TliiH Ih kiiowri liMnlly iin M'iI hciiiiilil.o, M|MM'iiliir (irii, (jray cmi,
fiiHHil ore, ciolilii' iirii, clc,
'Z. Ilroipit ore. liiciiiiliMH liy<lnil,(Ml Hm(|iii(ixi(li'M, Hllcll im liiiKiiiihi, (^Alliilo, uikI
l,iirKilii (l''i'J);|/ill..,< » lliciirclicMl pl•rl■(•Mlll^;ll (if imii, 6I).H (Kl). 'I'lils JH Kridwn Idciilly
08 lirowii irun <iri', lirown hciimlilc, liof^md, Mr lil.c, ol.c.
;i. MitiincliU:,— I ncliidinn inii^iichc iixiildii ( |i'ii|(),, Miinir-dlJcal jMin'(inl,it);;(i of jnjiii
72. 1). Miif.^iicl,il,ii in known ).;i'ii(inilly an iiiii|-;iHi| ii' unit din.
4. Irnii cnrhitiKilr. I iicliKliiifMMiplidMiil.dH df viiiidiiM l,ypdM(l''ci(l(),| I.Ikiiii'oMciiI |i(ir-
('('iil:if.rd df ii'dii, 'IK.?). I nil J curbdriald in klidwii Idcjdiy iiH ii|>al.lilr Iron circ, lijiliii^y
ore, Mack biiiid oro, Hidoril.n, (■I.e.
lI(Miniiito hiiM alwayH Ixumi iiKKUiiiiinHnl. aN mi oi'(f of iron, iiiiil iil,
|)r(w(Mi|j i'oiihI ilut.oH almoHt niiio-lonfliH of (Im iron oro iirodiicinl.
lirown oro and iiiii.<.;n(tUl(i nro far holow il in ini|>orl niico; itiicli fiii-
ni.slii^M al/ jii'itsdiil' iilxiiil. oiu'r l.w<nifi(^lJi of iJio l.ol.til iron oro prodiir-
lion. Tlu) orodiicl.ion of iron cMilioniild iH inniioiiliciud, in ••oiii|)n.riNon
witli tlnit of tli(» oMkm' oicm; il, (■on.sl il.iili^s only iilioiil, onn iJiirlioUi of
1 |)(!r ('(^iil, of liid folal.
In Mio following lidilo urn Nliown tlio (jnn.nl.ilJOH of oiioli of iJiii
cliiH.scM of iron onw inodiicdd in (Jm viirioiiH Sl.nXoH dnrinfj 11)0!) iitiil
]!)l():
I'rodwliim uj inm ore 'in. Ilir II iiilnl, SIiiIih in I'.Kl'.l iiiiil I'.llli, lii/ MldlcH (mil viirii'.lii'H, in
llllHI lllllH.
l(i< )i ).
Aliil.ltlriii
Ooloiiiijii, Niw Mi'.ili'ii, VViuiIiImi'Iimi, iiii'l
WyciiiilMi;
(!(,nin-(;U(;Ml, un'l MiLTiJu-lumctLu
(Irdrj'lii
KcnliK-liy iinil Wi'iil VlrKlriin ,
Miirvliintl .... ,
Mii;liii;iir]. ..
M iMlicfiot.n. ...
Miiniiiirl
N(iw .l(!r:»'v .... ....
N(iw Viirli.
Nnrlli Ciin.llriii ..
Olilu
I'fllM .vl VJUllli . - . ,
■li'Miii-rii-i',.
'I«xa: ...
Vlrj'lMlii .
\\ ln(,riilii .,,,.,
■roliil.
lil'riiiilllc llntwnnto.
:i. 1/11,4111
M2,1H
' \S,tM
II.IKH), ;itn
■m/.fiu, W.I
r.v,:i(M
M, IW
f., 14-1
■n, (If,/,
i,'Kii,'.i;ii
1 1., IIOII
;i«, zyz
ZII,4iJI,
ZIJ.VWI
■n,i,i',;s
HO, 711.
:«,n,ny'/
0,-171
70'/, (i;iv
r,, IM,
Muf^lii'l.lln.
•2,7m, rM
a i;rowii oro U liif;]ii'Jii(l jii inug/ioLiU).
om:i,72Ii
llli'.!, HO
01, I Ml
m.KKI
I , w.r,
'/,'/'m,k;','.i
I'luOipii
iil.n.
tn,i,v./
in,t,u7
Till III
i|iiiiiil.M.y,
mim
m,m
■/i\,m
74, 7«)
ilil.llKII
ii,iioii,m
«I,(IM
i,oir>,»
nijMi
lll,/OT
WI.WKI
mi,m
ti,m
I,II«7,<*1
UNITED STATES STEEL CORPORATION.
3489
Production of iron ore in the United States in 1909 and 1910, by States and varieties, in
long tons — Continued.
X910.
State.
Hematite.
Brown ore. Magnetite.
Carbon-
ate.
Total
quantity.
Alabama
3,678,139
656,629
1, 123, 130
15,975
34,168
253, 554
4,801,275
801,850
34, 158
313,878
84,347
14,002
13,303,906
31,966,769
78,341
521,832
1,287,209
65,278
22,320
739 799
ton, and Wymninf
189,246
Connecticut and Massachusetts
Georgia
60,324
47,493
Kentucky and West Virginia
16,854
14, 062
Maryland
Michigan
13,303,906
31,966,769
55,832
Minnesota .
Missouri
22,509
New Jersey
-521,832
0 1,222,471
65, 278
New York
64,738
North Carolina
Ohio
22,320
Pennsylvania
848
301,838
108,544
430,409
29,535
821, 131
705
632,409
Tennessee
732,247
29,635
903.377
1,149,551
Texas
81,647
1,148,848
599
Wisconsin
Total
51,387,007
2.St«,572
2,631,835
22,320
56,889,734
a Brown ore is included in magnetite .
From this table it will be seen that the great bulk of the hematite
comes from the Lake Superior district (Michigan, Mionesota, and
Wisconsia) and Alabama, the brown ore from the Appalachian
States, and the magnetite from New York, New Jersey, and Pennsyl-
vania. All the iron carbonate is obtained from Ohio. On a later
gage is given the production of the principal ranges in the Lake
uperior district. In the report for 1909 the production was given
for the first time of two important southern mining centers, the Bir-
mingham and the Chattanooga districts. Li the Birmingham dis-
trict are included, besides the mines in the imnaediate vicinity of
Birmingham, those in eastern Alabama that ship ores to the furnaces
at Birmingham. In the Chattanooga district are included those
mines that ship ores to Chattanooga, Tenn., to Kome, Ga., and to
Gadsden and Attalla, Ala. The brown ore mines near RusseUville,
Ala., and in west-central Tennessee are not included in either district.
The following table presents the production of iron ore ia the
principal mining districts and by varieties during 1910:
Production oj iron ore in the United States, by mining districts and varieties, in 1910, in
long tons.
District.
Hematite.
Brown ore.
Magnetite.
Carbonate.
Total.
46,328,743
3,300,433
712,817
C)
46, 328, 743
501,682
500,742
3,802 115
1, 213, 559
AdlrandB<^
■•1,146,080
6598,601
893,532
1,146,080
Northern New Jersey and southeastern
New York
1,866,148
598,601
other
1,018,636
22,320
3,800,636
Total
51,360,629
2,868,572
2,638,213
22,320
56,889,734
a Hematite Is included in magnetite^
A Brown oralis included in magnetite.
3490
UNITED STATES STEEL COBPORATIOIT.
TOTAL PRODUCTION OF IRON OBE.
In the following table is shown the production of various types of
iron ore ia the United States as far as has been recorded. The statis-
tics from 1889 to the present were collected by the United States
Geological Survey; those for 1860, 1870, and 1880 were collected for
the census reports of those years; those for 1875 and 1881 were esti-
mated by I. L. BeU;^ and those from 1882 to 1888, iuclusive, were
estimated by James M. Swank ^ from the pig-iron production. No
figures can be obtained for the production of various classes of iron
ores prior to 1889, except for the census year 1880.
Production oj iron ore in the United States, 1860-1910, in long tons.
Year.
Hematite.
Brown ore.
Magnetite.
Carbonate.
Total.
1860
1870
<• 3, 831, 891
4,017 857
1875 .
1880 .
2,243,993
1,918,022
2,134,276
823,471
7,120,362
7,119,643
"8,700,000
6 8,800,000
i> 7, 718, 129
67,600,000
b 10 000 000
1881
1882
1883
1884
1885
1886
1887
611,300,000
612 062 530
1888
1889
9,056,288
10,527,660
9,327,398
11,646,619
8,272,637
9,347,434
12,613,995
12,676,288
14,413,318
16,150,684
20.004,399
22,708,274
24,006,026
30,532,149
30,328,654
23,839,477
37,567,055
42,481,375
46,060,486
31,788,664
46,208,640
51,367,007
2,523.087
2,559,938
2,767,664
2,486,101
1,849,272
1,472,748
2, 102, 368
2,126,212
1,961,954
1,989,681
2,869,785
3,231,089
3,016,715
3,305,484
3.080,399
2,146,795
2,546,662
2,781,063
2,967,477
c<i2,561,825
°i2,700,431
f<i2,868,572
2.600,415
2,670,838
2,317,108
1,971,965
1,330,886
972,219
1,268,222
1,211,526
1,059,479
1,237,978
1,727,430
1,537,661
1,813,076
1.688,800
1,575,422
1.638,846
2,390,417
2,469,294
2,679,067
<: 1,647, 797
« 2. 229, 839
c 2, 631, 836
432,251
377,617
189,108
192,981
134,834
87,278
73,039
91,423
83,295
66,373
81,559
76,247
61,663
27,642
34,833
19,212
21,999
17,996
23,589
26,586
16,527
22,320
14,518,041
16,036,043
14 591 178
1890
1891
1892
16,296,666
11,587,629
11,879,679
1893
1894 .
1896
1896
16,006,449
17,518,046
19,433,716
24,683,173
27,663,161
28,887,479
35,654,135
35,019,308
27,644,330
42,526,133
47,749,728
51,720,619
■; 35, 924, 771
d 51, 156, 437
d 56, 889, 734
1897
1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
» Includes ore produced by owners of blast furnaces, estimated by census at 800,000 tons.
6 Figures given are tor consumption of domestic ores. Total production for 1882, 1883, and 1884 is esti-
mated as 9,000,000, 8,400,000, and 8,200,000 tons, respectively. See Mineral Resources U. S. for 1883 and
1884.
c Some brown ore included in magnetite.
d Ore used for fluxing purposes excluded from productions figures after 1907. In 1910, ore sold for paint
excluded from iron-ore production and Included In meta'lio paint.
In the following table the production of iron ore in the United
States is shown from 1810 to 1869, and by decades from 1870 to
1909. The figures for the years previous to 1889 were calculated
from the pig-iron production and include imported ore as well as
domestic ore used. Ore used for flux has been deducted from the
production in 1908 and 1909.
I Bell, I. L. , Principles of the manufacture of iron and steel, 1884. u. 4fil.
« Mineral Resources U. S., 1882 to 1888.
UNITED STATES STEEL COEPOEATION.
3491
Production oj iron ore in the United States jrom 1810 to 1909, by decades, and rate of
increase.
Decade.
Quantity in
long tons.
Percentage
of increase.
Decade.
Quantity, in
long tons.
Percentage
of increase.
1810-1869
49,656,000
44,570,527
91,043,854
1890-1899
163,989,193
383,735,101
80.1
134.0
1870-1879
1900-1909 a
1880-1889
104.3
"Iron ore used for flux excluded from production tor 1908 and 1909.
PRINCIPAL mON-ORE MINES.
During 1910, of the 451 iron-ore mines that operated, 191 mines
produced over 50,000 long tons of iron ore each, as compared with 150
mines in 1908. In 1909 permission to publish was not requested bj
the Bureau of the Census ia the collection of the statistics of iron-ore
production which were furnished to the Geological Survey. The
largest quantity produced by any single mine in 1910 was 3,190,093
long tons, from the HuU-Eust mine at Hibbing, on the Mesabi range,
Minnesota. Nine mines in Minnesota, besides one group in Alabama
and one mine and one group of mines in Michigan, produced more
than 1,000,000 tons each, and the second largest quantity was
1,769,067 long tons, produced by the Ked Mountain group of mines,
between Bessemer and Birmingham, Ala. Permission has been
granted to the Survey by the owners and operators of 158 of these
mines to publish their production, and this information is given in
the following table :
Iron-ore mines oj the United States that produced more than 50,000 long tons each in 1910.
Rank.
Names of mines.
States.
Nearest town.
Variety of ore.
Quantity.
1
HuII-Rust
Minnesota
Alabama
Minnesota
do ..
Hibbing
Hematite
do
3,190,093
1,769,067
1,523,836
1,515,723
1,364,680
1,288,325
1,209,335
1,178,058
1,118.865
2
Ked Mountain Group .
■RpRSempp
3
do
4
Maronlng.
Hibbing
... do
5
do
do
do
6
Adams
. . do
Eveleth
do
7
Michigan
do
Miimesota
do
do
8
9
Newport
Shenango .
do
Chishohn
do
do
10
do
1,105; 173
1,032,815
11
Burt - ..
..-.do.
Hibbing
do
12
Leonard
do
Chisholm .
do
1,023,410
976,631
13
Stevenson
.... do
Hibbing
do
14
Sellers
do
do
.... do
954,044
939,793
15
do
Virginia
do
16
Hilf ^
do
Marble
do
801,226
17
do
do
684,122
18
Pioneer
do
Ely
do
671,834
19
do
Eveleth
do
668,293
20
Cornwall - .
Pennsylvania.
Minnesota
New York....
Michigan
Miimesota
do
Miners Village
Hibbing
Magnetite
Hematite
Magnetite
Hematite
do
6.32,409
21
613,789
22
"Witherbee, Sherman & Co.
(Inc.), Mineville.
Chapin
590,658
23
Iron Mountain
f^hisiiolTTi
576,720
24
Clark
642,294
25
Biwabik
do
540,000
26.
Alabama
Minnesota
do . .-
Woodward
do
456,959
27
Taconite
do
414,388
28
Buhl
do
401,817
29
Michigan
do
do
400,649
3D
Iron Mountain
do
380,000
31
Minnesota
Michigan
Minnesota
do
Vu-ginia
do
354,242
32
Bristol
Crystal Falls
do
353,200
33
Uno
Hibbing
do
341,961
do
341,648
35
Zpnith
do
Ely
do
324,893
36
Lake Superior
Michigan
Ishpeming
do
321,370
3492
UNITED STATES STEEL COKPOBATION.
Iron-ore mines of the United States that produced more than 50,000 long tons each in
1910 — Contmued.
Bank.
Names ol mines.
States.
Nearest town.
Variety of ore.
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
116
Glen
Lincoln
Hanna, Nos. 1 and 2
Aragon
Genoa
Virginia
Grant
Queen Group
Corsica
Monroe-Tener
Albany
Aurora
Gary
Tobin
Miller
Susquehanna
Florence
Sauntry-AIpena
Lake Angeline
Iroquois
Utica
Port Henry, No. 21
Caspian
Hawkins
Higgins
Colby
Baltic
Bessemer, No. 3 Shaft
Elba
Brown Mining Co
Laura
Montreal
Cambria
Mary Charlotte, Nos. 1 and 2 .
Sibley
Ironton
Republic
Mohawk
Hudson
Hiawatha
Durm
Crudup
La Rue
American-Boston
Fowler
Gilbert
Adriatic
Agnew
Hartford
Kellogg
Greeley
Riverton Group
Pcttlt
Great Western
Myers
Loretto
Woodstock
Tilden
Yaleo
Mansfiel d
Raimund, No. 1
Breitimg Hematite, Nos.
and 2.
Brotherton
Buckeye
Hartley
Richard
Hemlock
Sunday Lake
Croxton
Brunt
Cyprus
Armenia
RoUingMill
Ottawa
Minorca
Raimund, No. 2
Berkshire
Soudan
Minnesota...
....do
.-..do
Michigan
Miimesota...
....do
..-.do
Michigan
Minnesota...
....do
....do
Michigan
Wisconsin. . .
Michigan
Minnesota. . .
....do
Wisconsin...
Minnesota...
Michigan
Minnesota. . .
do
New York. .
Micliigan
Minnesota...
do
Michigan
do
Minnesota. . .
do
Tennessee. . .
Minnesota. . .
Wisconsin...
Michigan
do
Alabama
Minnesota...
Michigan
do
Miimesota. . .
do
Michigan
do
Alabama
Mirmesota. . ,
Michigan
Minnesota...
do
do
do
Michigan
Minnesota..
Alabama. . .
Miclriigan...
Minnesota..
Michigan
Minnesota..
Michigan...
Alabama. . .
Michigan...
do
do
Alabama. . .
Michigan...
....do
Wisconsin...
Minnesota...
New Jersey.
Michigan
do
Minnesota...
....do
do
Michigan....
do
Wisconsin...
Minnesota...
Alabama
Michigan
Minnesota...
Chisholm
Virginia
Mountain Iron.
Norway
Gilbert
Eveleth
Buhl
Negaunee
MclCinley
Cliisholm
Hibbing
Iron wood
Hurley
Crystal Falls...
Aurora
Hibbing
Florence
Virginia
Ishpeming
Mountain Iron.
Hibbing
Mineville
Stambaueh
Nashwauk
Virginia
Bessemer
Stambaugh
Virginia
Mckinley
Cardiff
Hibbing
Hurley
Negaunee
do
Bii*mlngham . . .
Ely
Bessemer
Republic
Aurora
do
Iron River
Crystal Falls...
Gadsden
Nasliwauk
Diorlte
Aurora
Gilbert
Mesaba
Hibbing
Negaunee
Biwabik
Greeley
Iron River
Gilbert
Crystal Falls...
Chisholm
Loretto
Woodstock
Bessemer
do
Crystal Falls...
Bessemer
Negaunee
Wakefield
Commonwealth .
Chisholm
Wharton
Amasa
Wakefield
ChishoLm
Mountain Iron..
Hibbing.
Crystal Falls....
Negaunee
Hurley
Virgiiila
Bessemer
Stambaugh
Soudan
Hematite . .
....do
....do
....do
....do
.-..do
....do
-...do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
Magnetite..
Hematite..
-...do
...do
-...do
....do
....do
....do
....do
...do
....do
....do
....do
....do
....do
....do
do
do
do
do
do
do
.-..do
do
....do
do
do
do
do
do
Brown ore .
Hematite. .
do
do
do
do
Brown ore .
Hematite..
do
do
do
do
do....
do....
do....
Magnetit*.
Hematite.
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
a July to December.
UNITED STATES STEEL CORPORATION.
3493
Iron-ore mines of the United States that produced more than 50,000 long tons each in
iSiO— Continued.
Rajik.
Names of mines.
States
Nearest town.
Variety of ore. Quantitj'
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
Atlantic
Onondaga
Richmond
Orlskany
Barron and Franklin .
Troy
Monica
Puritan
Bartow
Madeira
Malta
Stelnman
James
Empire
MayvlUe
Antoine
Houston
Hector
"Winifred
Mannle
Gibson
Pearson
Genessee
Champion
Riverside, No. 575
Eureka
Cranberry.
Savoy
Pearce
Knox
Spauldlng
Mississippi.. .
Bray
Duluth
Chamberlain .
Chatham
Steemiller
Valley View..
Euclid
Section 30
Zimmerman..
Teoumseh
Victoria
Total (158 mines)..
Unspecified (33 mines) " .
Wisconsin. .
Mirmesota..
Michigan. . .
Virginia
Mlcnigan...
Minnesota..
....do
Michigan. . .
Georgia
Minnesota. .
do
Alabama. . .
Michigan...
do
Wisconsin..
Michigan. . .
Alabama. . .
Minnesota. .
do
Tennessee. .
Michigan...
Minnesota..
Michigan...
Alabama. . .
Georgia
Michigan
North Caro-
lina.
Minnesota
do
do
Alabama
Minnesota
do
do
Tennessee
Michigan
do
Alabama
Minnesota
do
Michigan
Alabama
Minnesota
Iron Belt
Virginia
Palmer
Orlskany
Humboldt
Eveleth
Biwabik
Ironwood
Cartersvllle
Hibbing
Gilbert
Birmingham
Iron River
Palmer
Mayviiie
Iron Mountain . . .
Woodstock
Biwabik
Hibblug
Aliens Creek
Amasa
Nashwauk
Crystal Falls
Onconta
Cartersvllle - Em-
erson.
Ramsay
Cranberry
Ely
Chlsholm
Mesaba
Birmingham .
Hibbing
Keewatin
Biwabik
Chamberlain .
Iron River...
Swanzy
Biimlngham.
Chisholm
Ely
Iron River...
Tecumseh
Virginia
Hematite . .
....do
....do
Brown ore.
Hematite . .
....do
....do
....do
Brown ore .
Hematite . .
do
do
do
do
do
do
Brown ore .
Hematite . .
do
Brown ore .
Hematite . .
do
do
Brown ore .
do
Hematite. .
Magnetite..
Hematite . .
do
do
do
do
do
do
do
do
do
do
do
do
do
Brown ore .
Hematite. .
Grand total..
98,870
98,427
95,248
95, 158
93,995
88,263
87,021
86,44-1
84,059
82, 922
81,976
78,567
78,387
78, 135
77, 156
76,341
75,644
74,333
74,226
71, 905
70, 168
09,459
68, 376
67,024
66,612
66,219
65,278
63,033
62,249
61,686
58,750
67,967
57,789
67,239
57,023
56,004
56,378
54,403
63,009
61,250
51,142
50,964
50, 173
48,111,674
5,449,951
53,661,525
" Includes the output of 33 mines producing over 50,000 long tons each, operated by 14 companies, which
object to the publication of individual statistics.
STOCKS OP lEON ORE AT MINES.
Considerable stock was left at the mines at the end of 1910 which
is not included in the production. On December 31, 1910, this stock
amounted to 9,408,235 tons, as compared with 6,135,171 tons on
December 31, 1909. Besides this stock at the mines, stocks are left
at receiving ports and furnaces, but these are included in the annual
production.
3494
UNITED STATES STEEL OOEPOEATION.
The following table shows the tonnage of stock left at the mines on
December 31, 1909 and 1910, in the various States:
Stock oj iron ore on hand at the mines December 31, 1909 and 1910, by States, in long tons.
state.
1909.
1910.
Slate.
1909.
1910.
717, 153
97
700
46,385
400
29
711
3,186,211
1,678,640
250
113,773
716,340
New York.
247,286
9,802
4,400
20,357
119,139
17,430
11,839
California
Ohio
4,090
14,848
10,600
11,348
Kentucky
Texas
Maryland
Massachusetts
1,020
4,281
4,698,565
3,486,277
8,625
17,567
1,000
1,000
107,077
Washington
286,266
Total
Mi'v';nnri
6,135,171
9,408,235
New Jersey,
Percentage of increase in
1910
53.35
PRICE OF IRON ORE PEE, TON.
In the following table the price per ton of the different classes of
iron ore in 1909 and 1910 is given for each of the producing States
or groups of States. The total average prices per long ton in 1910
were: Hematite, $2.52; brown ore, $1.76; magnetite, $2.36; carbon-
ate, $1.61, as compared with prices, respectively, of $2.17, $1.68,
$2.40, and $1.73 in 1909. These figures represent the value at the
mines and are taken directly from statements of the producers.
They should be accepted as only approximately correct. The ele-
ment of inaccuracy arises from the fact that by far the greater bulk
of the non ore produced in the United States is mined by pig iron
producers for their own furnaces, and the value placed on such ore is
therefore largely a matter of accounting. Some of the reports made
to the Survey evidently include merely actual mining costs; others
contain an allowance for sinking fimd; and in still others the figures
given are merely convenient pnces to use in charging costs against
the blast furnaces.
It is to be noted, however, that the errors are almost entirely
in one direction — that of imdervaluing the ore rather than of over-
valuing it. If aU the iron ore were to be bought by blast furnaces in
open market from an entirely distinct set of iron-ore producers, the
average prices paid would probably be considerably in excess of those
now reported. It is of interest to compare the prices given below
with those of the Lake Superior ores at tne lower Lake ports given in
a subsequent table.
UNITED STATES STEEL CORPOBATION.
3495
Average price per long ton of iron ore in the United States in 1909 and 1910, by States
and varieties.
State.
Hematite.
Brown ore.
Magnetite. Carbonate.
1909.
1910.
1909.
1910.
1909.
1910. 1909. 1910.
Alabama
J1.07
1.00
$1.19
1.00
$1.41
1.67
3.69
1.50
1.82
1.96
51.53
1.94
3.55
1.63
1.59
2.07
California, Colorado, New Mexico,
Waslitagton, and Wyoming
$1.00
SI. 00
Connecticut and Massachusetts
1.G9
1.25
1.54
1.25
Kentucky and West Virginia
Micnigan
2.7i
2.08
2.49
3.11
2.45
III
2.23
1.92
2.53
1.96
3.87
3.00
New Jersey
2.96
3.09
1.75
3.03
3.03
1.75
New York
1.88
2.21
North Carolina
Ohio
$1.73 , $1.61
2.36
1.30
2.34
1.26
2.4i
1.45
1.44
2.05
1.62
2.60
1.56
1.15
2.07
2.50
1.01
1.00
T'pnnps<;fp
Texas ,
1.76
2.56
1.74
3.14
2. DO
1.50
1
Wisconsin
1
2.17
2.52
1.68
1.76
2.40
2.36
1.73
1.61
APPARENT ANNTJAL IRON-OBE CONSITMPTION.
The following table includes data on certaia factors from which an
approximate estimate of the annual consumption of iron ore in the
United States is deduced. The result is, of course, merely an approx-
imation, for no data are available on certaia other factors which
should enter into the final result. The elements considered in the
table and estimate are (1) domestic iron-ore production; (2) stocks
oi ore at mines for current year and past year; (3) stocks of ore at
Lake ports for current year and past year; (4) 2dnc residuum pro-
duction; (5) imports of ore; (6) exports of ore.
Apparent consumption of iron ore in the United States, 1889-1910, in long tons.
Year.
Domestic
iron ore
produced.!!
Stocks
of ore at
mines.
Stocks of
ore at
lower Lake
ports
Dec. 1.
Zinc
residuum.
Imports.
Exports.
Apparent
consump-
tion.
1889
14,618,041
16,036,043
14,691,178
16,296,666
11,587,629
11,879,679
15,957,614
16,005,449
17,518,046
19,433,716
24,683,173
27,563,161
28,887,479
35,564,136
35,019,308
27,644,330
42,526,133
47,749,728
51,720,619
35,924,771
51,156,437
56,889,734
2,256,973
2,000,000
2,450,279
2,911,740
3,526,161
3,236,198
2,976,494
3,405,302
3,098,287
2,846,457
2,320,278
3,709,950
4,239,823
3,834,717
6,297,888
4,666,931
3,812,281
3,281,789
3,033,110
6,065,397
6,136,171
9,408,235
2,607,106
3,893,487
3,608,489
4,149,451
4,070,710
4,834,247
4,415,712
4,954,984
6,923,755
6,136,407
6,530,283
6,904,670
6,869,663
7,074,264
6,371,085
6,763,399
6,438,967
6,252,455
7,385,728
8,441,533
8,966,789
9,426,881
43,648
48,560
38,228
31,859
37,512
26,981
43,249
44,963
33,924
48,602
66,010
87,110
52,311
65,246
73,264
68,189
90,289
93,461
93,413
110,225
141,264
137,173
853,573
1,246,830
912,864
806,586
626,951
167,307
624,153
682,806
489,970
187,208
674,082
897,831
966,950
1,165,470
980,440
487,613
845,651
1,060,390
1,229,168
776,898
1,694,957
2,591,031
14,366,562
1890
16,302,025
1891
15,476,989
1892
16,032,687
1893
11,616,412
1894
11,600,393
1895
17,203,265
1896
15,766,128
1897
17,380,184
1898
20,708,604
1899 .
40,665
61,460
64,703
88,445
80,611
213,865
208,017
265,240
278,608
309,099
456,934
644,876
25,513,903
1900
1901
26,722,683
29,357,171
1902
35,886,921
1903
34,232,399
1904
30,224,910
1905
43,433,138
1906
49,356,343
1907.
61,879,998
1908
32,414,703
1909..
51,941,694
1910
66,161,091
« Prior to 1908 iron ore used for fluxing included in production. Such ore excluded 1908-1910.
ore sold for paint excluded from 1910 production and included in metallic paint.
Iron
3496
UNITED STATES STEEL CORPORATION.
COMPARATIVE PRODUCTION OF IRON ORE AND PIG IRON.
Detailed data on the pig-iron production of the United States are
presented on later pages of this report, but in the following table an
interesting comparison is made between the annual production of
iron ore and of pig iron.
Production oj iron ore and pig iron in the United States, 1889-1910, in long tons.
Year.
Iron ore
mined, o
Pig iron
produced.!"
Year.
Iron ore
mined. a
Pig iron
produced.*
1889
14,518,041
16,036,043
14,591,178
16,296,666
11,587,629
11,879,679
15,957,614
16,005,449
17,518,046
19,433,716
24,683,173
7,603,642
9,202,703
8,279,870
9,157,000
7,124,502
6,657,388
9,446,308
8,623,127
9,652,680
11,773,934
13,620,703
1900
27,553,161
28,887,479
35,554,135
35,019,308
27,644,330
42,526,133
47,749,728
61,720,619
35,924,771
61,155,437
56,889,734
13,789,242
15,878,354
17,821,307
1890
1901
1891
1902
1892
1903
18,009,252
10,497,033
22,992,380
26,307,191
25,781,361
15,936,018
25,795,471
27,303,667
1893
1904 . . .
1894
1905
1896
1906
1896
1907
1897
1908
1898. .
1909
1899
1910
a Prior to 1908, iron ore used for fluxing inpluded in production. Sucli ore excluded 1908-1910. Iron ore
sold for paint excluded from 1910 production and included in metallic paint.
b From annual reports of the American Iron and Steel Association.
IRON-ORE INDUSTRY IN THE LAKE SUPERIOR DISTRICT.
Production of iron ore in the Lake Superior district, hy ranges. — ^The
Lake Superior district includes the Vermilion, Mesabi, Cuyuna,
Penokee-Gogebic, Marquette, and Menominee ranges in the States
of Minnesota, Michigan, and Wisconsin. The Menominee range
includes the Crystal Falls, Metropolitan, Iron River, and Florence
areas; the Marquette range includes the Republic and Swanzy areas.
The Baraboo and Iron Ridge areas of southern Wisconsin and the
Spring Valley area of northwestern Wisconsin are frequently also
included in the Lake Superior district. In the first group of ranges
the ore mined is almost entirely Algonkian hematite, belonging to
the Huronian series. The Baraboo ore is of the same nature, but the
Iron Ridge ore is Cliuton hematite, and the Spring Valley ore is
brown ore.
In addition to these ranges, there are several iron-ore districts on
the Canadian side of the Great Lakes, the principal ones of which are
the Michipicoten, the Animikie, the Matawin, and the Atikokan.
The American ranges which produced ore in 1910 were the Ver-
mihon, Mesabi, Penokee-Gogebic, Marquette, and Menominee, besidea
the Baraboo, Iron Ridge, and Spring Valley areas. Much develop-
ment work was done on the Cuyuna range, which is expected to show
a production in 1911. The following table shows the production of
the first five of these for 1909 and 1910, as they constitute the Lake
Superior district proper.
The Mesabi range produced 66 per cent of the entire Lake Superior
output and about 53.75 per cent of the entire production of the United
States. The Menomiaee, Penokee-Gogebic, and Marquette ranges are
next in importance, the Menominee producing a little more and the
others a little less than the State of Alabama, which is the next State
in importance as a producer after Minnesota and Michigan. The
Vermihon range, the last in importance of the five producing Lake
Superior ranges, produced more ore in 1910 than New York, which is
fourth in importance as a producing State.
aORPOKATION.
3497
. In the following tables is shown the total production of the Lake
Superior district by ranges. The figures prior to 1872 were collected
by A. P. Swineford, editor Marquette Mining Journal; * those for
1872 to 1877, inclusive, are from the Michigan Mineral Statistics;
those from 1878 to 1888, inclusive, were collected by W. J. Stevens;^
and the later figures were collected by the United States Geological
Survey.
Production of iron ore in the Lake Superior region, 1909-1910, by ranges.
Bange.
1910.
Increase in
1910.
Percentage
of increase
in 1910.
Percentage
of total
production
InLato
Superior
region.
Marquette (Michigan)
Menominee (Michigan and Wisconsin)
Gogebic (Michigan and Wisconsin)
Vermilion (Minnesota)
Mesabi (Minnesota)
Total
Long tons.
"4,291,967
4,789,362
0 3,807,157
1,097,444
27,877,705
Long tons.
4,631,427
4,983,729
4,746,818
1,390,360
30,676,409
Long Urns.
339,460
194,367
939,661
292,916
2,698,704
7.91
4.06
24.68
26.69
10.00
10.76
10.24
3.00
66.00
41,863,635
46,328,743
4,465,108
100.00
" Some Gogebic ore included in Marquette.
Production oj LaTce Superior iron ore, 1854-1910, by ranges, in long tons.
Year.
Marquette.
Menomi-
nee.
Gogebic.
Vermilion.
Mesabi.
Total.
1854-1869
3,112,209
859,507
813,984
948,653
1,195,234
899,934
881,166
993, 311
1,014,754
1,033,082
1,130,019
1,384,010
1,579,834
1,829,394
1,305,364
1,559,912
1,4.30,862
1,627,383
1,851,717
1,918,672
2,631,026
2,863,848
2,778,482
2, 848, ,552
2,064,827
1,935,379
1,982,080
2,418,846
2,673,785
2,987,930
3,634,596
3,945,068
3,597,089
3,734,712
3,686,214
2,465,448
3,772,645
4,070,914
4,167,810
3,309,917
4,291,967
4,631,427
3, 112, 209
859,607
1870
1871
1872
948, 553
1873
1,195,234
899,934
881,166
993,311
1, 025, 129
1874
1875
1876
1877
10,375
78,028
245,672
624,735
726,671
1,136,018
1,047,863
895,634
690,435
880,006
1,199,343
1,191,097
1,876,157
2,274,192
1,866,124
2,402,196
1,663,049
1,256,265
1,794,970
1,763,235
1,767,220
2,275,664
3,281,422
3,680,738
3,697,408
4,421,250
4,093,320
2,871,130
4,472,630
4,962,357
4,779,692
2,904,011
4,789,362
4,983,729
1878-
1,111,110
1879
1, 376, 691
1880
1, 908, 745
1881
2, 306, 505
1882
2, 965, 412
1883
2, 353, 227
1884
1,022
119,690
766,237
1,286,265
1,433,689
2,147,923
. 2,914,081
2,041,754
3,058,176
1,466,815
1,523,451
2,626,475
2,100,398
2,163,088
2,552,205
2,725,648
3,104,033
3,041,869
3,683,792
3,422,341
2,132,898
3,344,551
3,484,023
3,609,519
3,241,931
3,807,157
4,746,818
62,122
227,075
307,948
394,910
511,963
864,608
891,910
945,105
1,226,220
815,735
1,055,229
1,027,103
1,200,907
1,381,278
1,125,638
1,643,984
1,675,949
1,805,996
2,057,632
1,918,584
1,056,430
1,578,626
1,794,186
1,724,217
927,206
1,097,444
1,390,360
2, 518, 690
1885
2, 467, 962
1886. . ....
3,571,674
1487
4, 731, 235
1888
5, 055, 411
1889
7,519,614
1890
8, 944, 031
1891
7,621,465
1892
29,245
684,194
1,913,234
2,839,350
3,082,973
4,220,151
4,837,971
6,517,305
8,158,450
9,303,541
13,080,118
13,452,812
11,672,405
20,156,666
23,664,891
27,245,441
17,725,014
27,877,705
30,576,409
9, 564, 388
1893
6,594,620
1894
7,682,648
1895
10, 268,-978
1896
10,566,359
1897
12,205,522
1898
13,779,308
1899
17,802,955
1900
20,664,238
1901
21,445,903
1902
26,977,404
1903
26,573,271
1904
20,198,311
1905
33,325,018
1906. . ..
37,876,371
1907
41,526,579
1908..
28,108,079
1909
41,863,635
1910
46,328,743
Total
97,861,463
76,390,887
66,533,749
30,708,055
226,937,775
498,431.929
1 Mineral Eesources U. S. for 1882, p. 116.
» Mineral Resources V. S. for 1891, p. 41.
3498
UNITED STATES S?
Shipments and receipts of Lake Superior ore. — ^During 1910, 43,442,-
397 long tons of iron ore were shipi)ed from the Lake Superior district.
Of this total 813,639 tons were snipped by raU, the remainder being
Lake shipments. Details concerning the shipments and receipts of
these ores are given in the foUowing tables, which are taken from the
Iron Trade Review:
Shipments of Lake Superior iron ore, 1905-1910, in long tons."
Shipping port.
1906.
1906.
1907-
1908.
1909.
1910.
Two Harbors .
7,779,850
5,307,938
8,807,669
3,486,344
2,977,828
5,118,386
8,180,125
5,861,050
11,220,218
3,388,106
2,791,033
6,083,067
8,188,906
5,761,988
13, 448, 736
3,436,867
3,013,826
7,440,386
5,702,237
3,351.602
8,808,168
2,613,670
1,487,487
3,664,030
9,181,132
6,747,801
13,470,603
3,834,207
2,909,461
6,540,605
8,271,177
4,959,726
Duluth
13, 640, 166
Ashland
4,094,374
3,248,516
Superior .
8,414,799
Total
33,476,904
907,212
37,513,689
1,052,173
41, 290, 709
976,959
26,427,094
687, 893
41,683,699
903, 270
42,628,758
All-rail shipments
813,639
Grand total
34, 384, 116
38,666,762
42,266,668
26,014,987
42, 586, 869
43,442,397
a Iron Trade Review.
Iron-ore receipts at Lake Erie ports, 1905-1910, in long tons."'
Port.
Ashtabula, Ohio
Cleveland, Ohio
Conneaut, Ohio
Buffalo and Tonawanda, N. Y.
Erie, Pa
Fairport, Ohio
Toledo, Ohio
Lorain, Ohio
Huron, Ohio
Sandusky, Ohio
Total
1905.
6,373,779
6,864,746
6,327,662
3,774,928
2,112,476
2,008,621
1,006,865
1,605,823
826,278
61,202
28,941,259
1906.
6,833,362
6,604,661
5,432,370
4,928,331
1,986,539
1,861,498
1,423,741
2,191,965
778, 463
35,847
32,076,757
1907.
7,621,859
6,496,998
5,876,937
6,680,438
2,294,239
2,437,649
1,314,140
2,621,025
971,430
83,043
35,196,768
1908.
3,012,064
4,240,816
4,798,631
2, 836, 099
828,602
1,618,961
680, 663
2,286,388
213,377
20,414,491
1909.
8,056,941
6,061,342
7,007,834
5,002,235
1,235,057
1,734,277
1,374,224
2,796,856
243,082
11,088
33,612,936
1910.
9,620,638
6,344,943
6,309,548
4,704,439
942,592
1,616,434
1,225,202
2.884,738
197,951
33,746,485
« Iron Trade Review.
The following table shows the total quantity of iron ore shipped
from the Lake Superior district since 1854, the date of the opening of
the Marquette range, the oldest of the Lake Superior ranges. This
table gives the shipments as collected by the Iron Trade Review and
is inserted for comparison with the table giving the total production
of the Lake Superior district, without regard to shipments:
Shipments of
iron ore from the Lake Superior region, 1854-1910, in long tons.
Year.
Quantity.
Year.
Quantity.
Year.
Quantity.
1864
3,000
1,449
36,343
25,646
15,876
68,832
114,401
49,909
124,169
203,055
243,127
236,208
278,796
473,667
491,449
617,444
830,940
779,607
900,901
1,162,458
1874
919,657
891,257
992,764
1,015,087
1,111,110
1,375,691
1,908,746
2,306,605
2,965,412
2,363,288
2,618,692
2,466,372
3,668,022
4,730,577
6,063,693
7,292,764
9,012,379
7,062,233
9,069,656
6,060,492
1894
7,748,932
1856
1875.
1896
10,429,037
1856
1876
9,934,828
1857
1877
1897
12,469,638
1868
1878
14,024,673
18,261,804
1859
1879
1899
1860
1880
1900
19,059,393
1861
1881
1901
20,589,237
1862
1882
27,571,121
1863
1883..
1903
24,289,878
1864
1884
1904
21,822,839
1866 ■
1885
1905
34,384,116
1866
1886
1906
38,565,762
1867
1887
1907
42,266,668
1868
1888
1908
26,014,987
1869
1889
1909
42,586,869
1870
1890
1910
43,442,397
1871
1891.
Total
1872
1892. .
492,793,642
1873
1893
UNITED STATES STEEL, COEPOEATION.
3499
Stocks of iron ore at Lake Erie ports. — ^At the close of navigation in
1910 the stocks of iron ore at the Lake Erie ports exceeded those of
the same date ta 1909 by 461,092 tons; and the stocks of 1909 ex-
ceeded those of 1908 by 524,256 tons.
The folio-wing statistics from the Iron Trade ReYiew contain data
as to the stocks of iron ore at the Lake Erie ports at the close of navi-
gation and at the opening of navigation for the last six years :
Stocks of iron ore at lower Lake ports, December 1, 1905-1910, in long tonsfi
Port.
AsMabula, OMo
Cleveland, Ohio.
Fairport, Ohio..
Erie, Pa
Lorain, Ohio
Conneaut, Ohio.
Toledo, Ohio....
Huron, Ohio
Buffalo, N.Y...
Sandusky, Ohio.
Total
At close of navigation, December 1 —
1,689,961
1,330,619
769,961
664,961
271,696
976,976
368,024
208,023
315, 780
62,977
6,438,967
1906.
1,831,312
1,224,606
690, 783
682,631
336,321
1,067,424
281,000
246,499
316,412
17,467
6,262,466
1907.
2,056,820
1,281,336
523,981
662,219
366,271
1,090,774
518,645
415, 730
435,407
44,546
7,385,728
1908.
2,293,631
1,458,392
836,821
730, 630
426,274
1,296,676
690,926
468, 158
316,148
36, 079
;, 441, 533
1909.
8,966,789
1910.
2,594,369
3,287,816
1,647,142
1,638,795
867,640
839,970
788,046
792,011
407,129
269,448
1,411,002
1,329,997
332,456
433,215
477,333
375,118
501,125
462,783
39, 667
17,728
9,426,881
a Iron Trade Eeview, May 13, 1909, May 12, 1910, and May 18, 1911.
/
Stocks of iron ore at lower Lake ports. May 1, 1906-1911, in long tonsfi
At opening of navigation. May 1-
1906.
1907.
1909.
1911.
Ashtabula, Ohio
Cleveland, Ohio.
Fairport, Ohio. .
Erie, Pa
Lorain, Ohio
Conneaut, Ohio.
Toledo, Ohio. . .
Hiu-on, Ohio
Buffalo, N.Y...
Sandusky, Ohio.
Total
462,564
350,382
266, 162
169,488
140,462
148,528
62,560
80, 738
90,906
29,320
568,485
447,573
154,246
189,276
176,300
139,853
147,397
98,106
50,313
5,439
1,799,
1,029,
225,
595,
327,
462,
217,
392,
388,
42,
1,392,430
1,018,056
562,679
667,029
362,096
497,203
380,675
379,364
189,209
31,628
1,609,931
986,725
541,299
560, 187
205,445
461, 365
366,631
336,693
364, 336
22,468
2,277,931
1,502,858
633,485
663,778
346,849
419, 421
383,761
273,042
347, 702
11,458
1,791,090
1,976,9
6,480,300
6,370,268
5,444,080
6,850,286
a Iron Trade Eeview, May 13, 1909, May 12, 1910, and May 18, 1911.
Prices of Lake Superior iron ore. — In the following table are given
the prices of Lake Superior iron ore at the lower Lake ports during
1909 and 1910.
The base for the Bessemer ore is a metallic iron content of 55 per
cent; that of the non-Bessemer ore is a metallic iron content of 51.5
per cent.
Base prices per long ton of Lake Superior iron ore at lower Lake ports, 1909-1910.
1909.
1910.O
1909.
lOlO.a
Old range:
Bessemer
$4.60
3.70
S5.0Q
4.20
Mesabi:
"ReRtsRmer
JS4.26
3.60
$4.7S
4.00
o Iron Trade Eeview, Jan. 13, 1910.
3500
UNITED STATES STEEL CORPORATION.
FOREIGN TRADE IN IRON ORE.
IMPORTS.
The quantity of iron ore imported into the United States in 1910
exceeded the Lmports of any year heretofore recorded. The imports
of 1910 exceeded those of 1909 by 53 per cent. About 56 per cent of
the imports were from Cuba, about 17 per cent from Spain, about 10
per cent from Sweden, and the bulk of the rest was from Newfound-
land, the imports from which decreased 7 per cent from those of 1909.
The statistics with regard to imports are furnished by the Bureau of
Statistics of the Department of Commerce and Labor.
In the following table are shown the imports of iron ore from the
various countries from 1907 to 1910, inclusive:
Quantity and value oj iron ore imported into the United States in the calendar years
1907-1910, by countries, in long tons.
Country.
Cuba
Spain
French Africa
Greece
Newfoundland and
Labrador
United Kingdom ...
Germany
Netherlands
Canada
Belgium
Russia in Europe
Sweden
other countries
Total 1,229,168
Quan-
tity.
667,133
296,318
65,940
23,800
89,685
5,765
273
600
26,878
126
62,751
Value.
1,522,710
760,801
262,897
42,927
97,735
16,491
2,096
3,673
61,328
1,102
579,668
126,074
185,723
Quan-
tity.
81,766,091
331,070
4,850
48,285
2,028
602
6,013
1
4,617
6,760
Value.
5,311
48,286
32,027
4,052
16,321
28
15,783
15,280
Quan-
tity.
927, 774
291,547
37,208
19, 080
224,395
869
3
27,165
3
32,010
120,564
114,349
3,937,483 776,898 2,224,248 1,694,967 4,579,078 2,591,031 7,832,225
Value.
S2,681,028
664,460
67,516
21,782
330,066
12, 846
100
84, 613
179
62, 418
627,315
26, 760
1910.
Quan-
tity.
1,461,096
439,868
15,471
39,060
209,006
11,388
3
96,006
168
12,570
269,911
6 67,496
Value.
$4,459,789
1,040,689
36,791
71,951
343,892
52,591
58
261,086
644
48,279
1,391,976
134,579
a Other countries in 1909: Colombia and Mexico.
6 Other countries In 1910: Chinese Empire, Colombia, Egypt, British South Africa, etc.
The following table shows the imports of iron ore into the United
States from 1907 to 1910, inclusive, oy ports of entry:
Quantity and value oj iron ore imported into the United States in the calendar years
1907-1910, by customs districts, in long tons.
1907.
1908. 1909.
1910.
Customs district.
Quan-
tity.
Value.
Quan-
tity.
Value.
Quan-
tity.
Value.
Quan-
tity.
Value.
Baltimore . . .
639,602
479
500
7,406
$2,436,457
2,071
3,673
19,989
248,875
21
600
4,392
1,355
516,619
$844,436 628,577
61 ''
$1,838,762
29
1,137,916
235
13,575,059
853
Boston
Charleston
3,070
17,424
23, 637
New York . .
47,286
93,277
78,656
213,282
Perth Amboy
554, 104
100
1,422,503
630
1,318,182
991,983
2,659,760
1,269,180
3,775,770
.'^avn.nnfl^
Chicago
7,679
22 610
Los Angeles
51
501
Puget Sound
1,976
100
172
5
18, 866
6,365
832
96
20
33,393
25,000
47,750
San Francisco
50
446
Buffalo Creek
141
40
3,500
25
4,000
18,106
596
489
75
16,250
777
16,700
46,106
2,310
4,200
29
4,473
10
1,712
30
3,030
73
Cuyahoga
Detroit
306
765
Erie
5,400
9,658
2,569
23
23
676
22
9,403
40
60
3,768
170
63,966
2,343
26
137
172,824
11,166
75
Niagara
292
652
i67
1,244
455
2,054
1,609
St. Louis
Genesee
17
225
895
2,694
10
1,449
553
Other districts
5,463
Total
1,229,168
3,937,483
776,898
4,679,078
2,591,031
7 832, 22S
'
UNITED STATES STEEL CORPOEATION.
3501
In the following table is shown the importation of iron ore into the
United States as far as has been recorded. Iron ore was imported
from Europe in large quantities for the first time in 1879, most of the
ore prior to that date coming from Canada.
Imports of iron ore into the United States, 1872-1910, in long tons.
Year.
Quantity.
Year.
Quantity.
Year.
Quantity.
1872
23,733
45,981
57,987
56,655
17,284
30,669
28,212
160,197
284,141
493,408
782,887
589,655
490,875
487,820
1885
390,786
1,039,433
1,194,301
687,470
853,673
1,246,830
912,864
806,585
626,961
167,307
624,163
682,806
489,970
187,208
1899
674,082
897,831
966,950
1,165,470
980,440
487,613
846,651
1,060,390
1,229,168
776,898
1,694,957
2,691,031
1873
1886
1900
1874
1887
1901
1876
1888
1902
1876
1889
1903
1877
1890
1904 . . .
1878
1891
1906
18790
1892
1906... .
1879 6 . .
1893 , . :
1907
1880
1894
1908... .
1881
1895
1909
1882
1896
1910... .
1883
1897
1884
1898
a Fiscal years end.
6 Calendar years begin.
EXPORTS.
The quantity of iron ore exported from the United States in 1910
amounted to 644,875 long tons, an increase of more than 41 per cent
over iron-ore exports in 1909.
In the following table is shown the exportation of iron ore from
the United States, by customs districts, from 1907 to 1910, inclusive.
The data regarding exports are collected by the Bureau of Statistics,
Department of Commerce and Labor.
Quantity and value of iron ore exported from the United States in the calendar years,
1907-1910, by customs districts, in long tons.
1907.
1908.
1909.
1910.
Customs district.
Quan-
tity.
Value.
Quan-
tity.
Value.
Quan-
tity.
Value.
Quan-
tity.
Value.
Newport News
77
S419
Pavannf^h . ,
10
75
Norfolk and Portsmoutii
18
206
240
1,098
3
$27
Buffalo Creek..
26
7,359
4
52,609
3,097
244,408
1,697
S140
22,617
46
187,069
7,289
789,306
6,667
336
9,417
1,506
27,170
1,203
19,941
6,064
14,856
4
43,613
60
219,761
114
44,696
47
160,722
195
565,644
462
71,740
Detroft
Dulutti
129,231
6,887
306,270
471,088
21,819
830,415
187,042
2,848
415,396
660, 654
12,956
Superior
1,283,824
Pngfit: ffo'lTid
3,790
13,300
18,435
48,861
Total—
278,608
763,422
309,099
1,012,924
455,934
1,365,325
644,875
2,074,164
31572— No. 52—12-
3502
UNITED STATES STEEL COEPORATTON.
The quantity of iron ore exported from the United States, as far as
has been recorded, is shown in the following table :
Exports of iron ore from ihe United States, 1899-1910, in long tons.
Year.
Quantity.
1899
40,665
51,460
64,703
88,445
80,611
213,865
1900 .
1901 ,
1902
1903
1904 - - --
Quantity.
455,934
644,875
rRON-OBE INDTJSTBY OF CUBA.
The irpn ores which haTe been mined in Cuba up to the present
time consist largely of hematite and magnetite and are obtaiaed
near Santiago, m the Province of Oriente (Santiago). Kecently
large deposits of brown ore have been attracting considerable atten-
tion, especially those of the Mayari and the Moa fields, in Oriente
Province, and those of the Cubitas field, in Camaguey Province. No
ores of this type were reported as mined in 1909, but there was a
considerable production m 1910. Several interesting papers have
been published by the American Institute of Mining Engiaeers on
Cuban iron ores within the last year, and these are listed in the
bibliography at the end of this chapter.
The following table shows the shipments of iron ore from Cuba since
the opening of the mines in 1884. The statistics of the Cuban iron-ore
production were collected by the United States Geological Survey.
Shipments of iron ore from mines in the Province of Oriente (Santiago), X884-1910, in
long tons.
Year.
Juragua
Iron Co.
(Limited).
Sigua Iron
Co.
Spanish-
Amerioan
Iron Co.
Cuban Steel
Ore Co.
Ponupo
Manganese
Total.
1884
25,295
80, 716
112,074
94,240
206,061
260,291
363,842
264,262
335,236
337,155
156,826
307,503
298,885
'■248,256
83,696
161,783
154,871
199,764
221,039
155,898
31,162
139,828
133,379
181,063
366,580
356,669
31P,814
25,295
1885
80,716
1886
112,074
1887
94,240
1888
206,061
1889
260,291
1890
363,842
1891
264,262
1892
6,418
14,020
341,654
1893
351,176
1894
166,828
1895
74,991
114,110
!> 206,029
84,643
215,406
292,001
e 334, 833
455,106
467,723
356,111
421,331
507,195
500,330
462,854
514,066
934,092
382,494
1896
412,996
1897
464,285
1898
168,339
1899
377,189
1900
449,872
1901
17,651
23,590
662,248
1902
699,734
1903
623,621
1904
387,273
1905
561,169
1906
640,674
1907
681,393
1908
819,434
1909
69,721
165,008
930,446
1910
1,417,914
o Of this quantity, 5,932 tons were sent to Piotou, Nova Scotia.
b Of tliis quantity, 51,537 tons were sent to foreign ports,
c Of this quantity, 12,691 tons were sent to foreign ports.
UNITED STATES STEEL, CORPORATION.
3503
WORLD'S PBODUCTION OF IRON ORE.
The latest available statistics with regard to the world's production
of iron ore are shown in the following table. Of the figures in this
table, those for the United States, Great Britain, Cuba, Canada, India,
and Austraha are in long tons ; those for the other countries are in
metric tons.
World's proditction of iron ore in 1908 and 1909, by countries.
Country.
1908.
1909.
■ United States
Germany and Luxemburg
United Kingdom
Spain
France
Russia
Sweden
Austria-Hungary
Canada
Newfoundland
Cuba
Algeria
Tunis
Greece
Italy
Belgium
China ti
India
Japan
Norway
Australia
Tons.
35,924,771
24,278,161
15,031,025
9,271,692
10,057,145
(a)
4,713,160
4,718,700
0 212,673
935,164
930,446
943,424
148,000
616,368
639,120
188,780
133,458
72,300
119,656
56,194
Tom.
51,155,437
25,606,000
14,979,979
C)
11,890,000
m
0 239,324
<:991,115
1,417,914
891,000
218,000
531,000
200,000
83,466
" Not available.
t> Austria produced 2,490,000 tons. Figures for Hungary not available.
c Shipments.
d Exports.
IRON AND STEEL INDUSTRY OF THE UNITED STATES.
PRODTTCTION AND VALXJE OF PIG IRON BY STATES.
The production of pig iron in 1910 amounted to 27,303,567 long
tons, valued f. o. b. at the furnaces at $425,115,235, as compared
with 25,795,471 long tons, valued at $419,175,000, in 1909, an
increase in quantity of 1,508,096 tons and in value of $5,940,235.
The average value per ton in 1910 was $15.57 and in 1909 it was
$16.25, a decrease in 1910 of 68 cents per ton. The figures of output
of pig iron and steel given herewith are the official statistics of the
American Iron and Steel Association, pubHshed by James M. Swank,
feneral manager of the association, in his annual statistical reports.'
'he values of pig iron for 1907, 1908, and 1910 were reported to the
United States Geological Survey by the manufacturers, and represent
the approximate value f. o. b. at the furnaces, therefore elimmating
freight costs, commissions, etc., which are included in the market prices
of pig iron as pubhshed in the trade journals. The value for 1909 is
an estimate made on a basis similar to that used in estimating the
values prior to 1907. The production of pig iron includes the pig iron,
ferromanganese, spiegeleisen, etc., produced from foreign as well as
domestic ore, since there are no data at present available for separat-
ing out the production derived from domestic ore. The quantity and
vdue of blast furnace products derived from ore imported from Cuba,
Spain, Newfoundland and Labrador, and Sweden is considerable.
3504
UNITED STATES STEEL CORPOEATION.
but, of course, it constitutes a very small percentage of the total
production.
The following table shows the quantity and approximate value of
pig iron production in the United States in 1909 and 1910, and the
increase or decrease, both by totals and percentages, for the various
producing States:
Quantity and value of pig iron produced in the United States in 1909 and 1910, by States,
in long tons.
State.
1909.
Quantity.
Value.
Quantity.
Value.
Increase (+) or de-
crease (— ) in 1910.
Quantity.
Value.
Percentage of
increase (+) or
decrease (— ) in
1910.
Quan-
tity.
Value.
Alabama
Illinois
Kentucky
Maryland
New Jersey
New York
OMo
Pennsylvania. .
Tennessee
Virginia
West Virginia. .
Calilomia
Colorado
Missouri
Oregon
WaSiington
Connecticut
Massachusetts. .
Georgia
Texas
Indiana
Michigan
Minnesota
Wisconsin
1,763,
2,467,
86,
286,
294,
1,733,
6,651,
10,918,
333,
391,
228,
822,222,
44,211,
1,398,
4,673,
4,473:
27,392;
93,321,
176,429,
4,647
5,683;
3,835
382,766
18,388
26,072
964,289
348, 177
7,370,000
660,000
442,000
17,670.000
6,859,000
939,147
675,646
100,609
326, 214
264,781
938,407
762,112
272,323
397,569
444,976
174,661
428,612
16,582
14,725
1,250,103
307,200
754,561
917,362
692, 572
230,824
204, 722
410,165
122,356
696,338
271,765
207,415
619,916
176,530
208,490
14, 138
39,368
29,693
204,732
200,667
363,499
63,724
53,842
53,621
+$1,
- 1,
+ 6,
- 6
+ 5
+
+
- 1,
632,551
293,638
294,572
557,824
268,278
018, 165
198,644
266,338
624, 765
624,416
215,086
9.95
8.45
16.37
13.72
10.08
11.81
3.61
3.24
19.09
13.77
23.49
+ $6.90
2.93
-I- 21.07
-I- 11.94
00
-I- 18.32
6.57
-I- 3.00
-I- 13.44
-I- 9.23
31.68
6,514,902
516,363
323,960
19,751,627
4,881,408
46,846
1,806
- 11,347
+ 285,814
- 40,977
- 855,098
- 133,637
- 118,060
+ 2,181,627
- 977,692
-I- 11.!
9.82
- 43.62
-I- 29.64
- 11.77
- 11.60
20.66
26.71
+ 12.42
- 16.68
Total '25,795,471
419,176,000
27,303,567
425,116,235
-1-1,608,096
-I- 5,940,236
-1- 5.85
-I- 1.42
The following table gives the annual average price per long ton of
pig iron in the United States for the years 1889 to 1910, inclusive.
The prices prior to 1907 include the cost of transportation from
blast furnaces to markets. The extreme range in prices, from $9.76
in 1894 to $20.92 in 1902, is of interest in view of present manufacturing
conditions :
Average price per long ton of pig iron in the United States, 1889^1910.
1889 $15.78
1890 16.43
1891 15.50
1892 14.32
1893 11.90
1894 9.76
1895 11.14
1896 10.47
1897 $9.85
1898 9.90
1899 18.00
1900 18.85
1901 15.25
1902 20.92
1903 19. 12
1904 $14.13
1905 16.63
1906 19.98
1907 20.56
1908 15.96
1909 16.25
1910. 15. 57
The following table shows the number of blast furnaces in blast
on June 30 and December 31, and the total number of stacks recorded,
for the years 1909 and 1910:
COBPORATION. 3505
Record of blastfurnaces in the United States, 1909 and 1910, by States.
State.
PermsylTania .
Ohio
Ulinois
Alabama
New York
Virginia
Tennessee
Colorado
Idissouri
Oregon
Washington...
California
Maryland
New Jersey...
Wisconsin
Minnesota
Indiana
Mictiigan
West Virginia.
Kentucky
Georgia
Texas
Connecticut...
Massachusetts.
Total....
Furnaces
in blast
June 30,
1909.
103
44
19
19
16
258
Deo. 31,1909.
In.
134
61
23
29
17
13
13
3
2
0
0
0
4
5
6
1
7
11
3
2
0
0
2
2
338
Out. Total.
131
162
74
26
51
28
26
21
6
2
1
1
0
5
11
7
1
7
15
4
8
4
4
3
2
Furnaces
in blast
June 30,
1910.
116
50
20
24
18
11
12
4
2
0
0
0
4
3
4
1
6
11
1
3
0
0
2
1
293
Deo. 31, 1910.
In.
206
Out.
267
Total.
164
76
26
50
29
26
20
6
2
1
1
0
5
9
7
1
9
16
4
8
4
4
473
The accompaiiyiiig diagram (fig. 2) illustrates the course of the
manufacture of pig iron, by months, in 1907, 1908, 1909, and 1910.
The sudden declme in production of pig iron at the close of October,
1907, the low production during the first half of 1908, the slow recov-
ery of activity in the last half of 1908, the hesitating conditions early
in 1909, the steady and rapid increase in production during the last
part of that year, culminatmg in December with a record production
of more than 2,682,000 tons, and finally the gradual, almost uninter-
rupted decline throughout the year 1910, are all strikingly displayed.
PBODTJCTION OF PIG IRON BY GRADES.
The following table shows the production of the principal grades
of pig iron from 1906 to 1910, inclusive:
Production of pig iron in tke United States, 1906-1910, by grades, in long tons.
Grade.
1906.
1907.
1908.
1909.
1910.
Bessemer and low phosphorus
13,840,518
5,018,674
697,420
4,773,011
699,701
244,980
55,520
77,367
13,231,620
6,376,219
683,167
6,151,209
920,290
283,430
66,918
80,608
7,216,976
4,010,144
457,164
3,637,622
414,967
111,376
40,642
47,137
10,557,370
8,250,225
726,624
6,322,415
658,048
142,831
82,209
56,749
11,245,642
Basic (mineral fuel).
9,084,608
564,167
Foundry and ferrosiUcon
5,260,447
Malleable Bessemer
843,123
Spiegeleisen
153,066
Ferromanganese
71,376
White, mottled, direct castings, etc. :
81,169
Total
26,307,191
25,781,361
16,936,018
25,796,471
27,303,667
3506
UNITED STATES STEEL OOBPORATION'.
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COEPOEATIOIT.
3507
PRODUCTION OF PIG IRON ACCOBDINGr TO FXTEL USED.
In the following table is given the production of pig iron according
to the fuel used, from 1906 to 1910, inclusive:
Production of jng iron according to fuel wed, 1906-1910, in long tons.
Fuel used.
1906.
1907.
1908.
1909.
1910.
mt"Tninni7R, phififly onlrfi
23,313,498
1,635,614
25,072
433,007
23,972,410
1,336,286
36,268
437,397
15,331,863
353,315
1,694
249,146
24,721,037
682,383
16,048
376,003
26,257,978
628,679
20,503
396,507
Total
25,307,191
25,781,361
15,936,018
25,796,471
27,303,667
TOTAL PRODUCTION OF PIG IRON.
The following table shows the production of pig iron in the United
States as far as has been recorded. The statistics for 1854 and all
succeeding years were collected by the American Iron and Steel
Association; those for 1810, 1840, and 1850 are census figures; those
for the other years are largely estimates by early statisticans.
Production of pig iron in the United States, 1810-1910, in long tons.
Year.
Quantity.
Year.
Quantity.
Year.
Quantity.
1810
63,908
20,000
130,000
142,000
166,000
191,000
200,000
286,903
215,000
766,000
800,000
800,000
660,000
663,765
600,000
657,337
700,159
788,515
712,640
629,648
760,660
821,223
653,164
703,270
1863
846,075
1,014,282
831,770
1,205,663
1,306,023
1,431,260
1,711,287
1,665,179
1,706,793
2,648,713
2,660,963
2,401,262
2,023,733
1, 868, 961
2,066,594
2,301,216
2,741,853
3,835,191
4,144,254
4,623,323
4,595,510
4,097,868
4,044,526
5,683,329
6,417,148
6,489,738
7,603,642
9,202,703
8,279,870
9,157,000
7,124,602
6,667,388
9,446,308
8,623,127
9,652,680
11,773,934
13,620,703
13,789,242
16,878,354
17,821,307
18,009,252
16,497,033
22,992,380
26,307,191
25,781,361
15,936,018
25,795,471
27,303,567
1820
1864
1888
1828
1865
1829
1866
1890
1830
1867
1831
1868
1892
1832
1869
1893
1840
1870
1894
1842
1871
1895
1846
1872
1896
1847
1873
1897
1848
1874
1898
1849
1875
1899
1850
1876
1900
1862
1877
1901
1864
1878
1902
1855
1879
1903
1856
1880
1904
1857
1881. - - ..
1905
1868
1882
1906
1859
1883
1907
1860
1884
1908
1861
1885
1909
1862
1886
1910
i55Ub
UNITED STATJiS
PRICES OF PIG IBON.
In the following table are given the average monthly prices of the
principal kinds of pig iron for 1909 and 1910:
Average monthly prices per ton of pig iron, 1909 and 1910, by moniks and hinds.
1909.
1910.
Month.
Gray
forge pig
iron at
Pitts-
burgh.
Bessemer
pig iron
at Pitts-
burgh.
Basic
pig iron
at Pliila-
delphia.
Gray
forge pig
iron at
Pitts-
burgh.
Bessemer
pig iron
at Pitts-
burgh.
Basic
pig iron
atPhUa-
delphia.
Tannnry ,
$15.40
15.09
14.65
14.40
14.40
14.77
14.86
15.21
16.15
17.02
17.27
17.40
$17.34
16.77
16.34
15.80
16.84
16.02
10.40
17.02
18.05
19.52
19.90
19.90
$16. 75
16.56
15.60
16.00
15.13
15.50
15.88
17.06
18.13
18.38
18.75
18.76
$17. 40
17.02
16.15
16.09
15.90
15.20
14.62
14.30
14.16
14.16
14.09
13.90
$19.90
19.34
18.60
18.34
17.52
16.62
16.40
16.09
16.90
15.90
16.80
15.90
$18. 75
18.66
18.26
April
17.56
16.69
June . . .---
16.10
July
16.68
August
16.12
16.00
15.00
14.75
December
14.75
PBODTJCTION OF STEEL BY STATES AND KINDS.
The following table shows the production of Bessemer steel ingots
and castings in the leading States from 1906 to 1910, inclusive:
Production of Bessemer ingots and castings, 1906-1910, by States, in long ions.
state.
1906.
1907.
1908.
1909.
1910.
Pennsylvania
4,827,725
3,769,913
1,684,772
1,993,420
4,351,841
3,636,679
1,723,073
1,956,956
2,106,382
1,956,446
1,237,747
817, 180
2,846,602
3,466,077
1,632,444
1,386,660
2,976,750
Ohio..".
3,314,053
niinois
1,693,053
1,429,916
Total
12,275,830
11,667,649
6,116,755
9,330,783
9,412,772
In the following table is given the production of open-hearth
steel ingots and castings in the leading States from 1906 to 1910,
inclusive :
Production of open-hearth steel ingots and castings, 1906-1910, by States, in long tons.
state.
New England
New York and New Jersey
Pennsylvania
Ohio
Indiana
nihiois
other States..;
Total
251,
553,
7,718,
818,
163,
884,
691,
10,980,413
1907.
239, 797
706,019
7,868,353
819,642
181,662
1,013,261
721,012
11,549,736
1908.
158,417
350,348
5,322,229
625,171
167, 299
483,104
830, 161
7,836,729
1909.
257, 392
618, 117
9,400,287
1,424,452
783,957
1,052,672
957, 159
14,493,936
223,158
713,245
lOi 163,816
1,733,409
1,307,129
996,011
1,378,741
16,604,509
UNITED STATES STEEL COEPOEATION.
3509
The following table gives the production, by States, of basic and
acid open-hearth steel ingots and!^ castings in 1910:
Production of basic and add open-hearth steel ingots and castings in 1910, by States, in
long tons.
State.
Basic open-
hearth
steel.
Acid open-
hearth
steel.
Total.
New England
New Yorlc and New Jersey
Pennsylvania
Ohio
Indiana
Illinois
Other States
Total
179,422
636,896
9,270,722
1,636,971
1,278,734
963,896
1,305,689
43,736
76,349
883,094
96,438
28,395
11,116
73,052
16, 392, 329
1, 212, 180
223, 158
713,245
10, 153, 816
1,733,409
1,307,129
995,011
1,378,741
16,604,609
The following table gives the production of all kinds of steel
ingots and castings in 1909 and 1910:
Production of all Tcinds of steel ingots and castings in 1909 and 1910, by States, in long tons.
1909.
1910.
state.
Besse-
mer.
Open-
hearth.
Crucible
and all
other.
Total in-
gots and
castmgs.
Besse-
mer.
Open-
hearth.
Crucible
and all
other.
Total in-
gots and
castings.
Massachusetts,
Khode Island, and
Connecticut a
New Yorlc and New
Jersey. . .
1,174
602,046
2,845,602
751,921
3,466,077
1,632,444
31,519
257,392
618,117
9,400,287
612,650
1,424,452
1,836,529
444,609
3,562
34,930
63,900
70
2,145
19,704
5,991
262,128
1,256,093
12,309,789
1,264.641
4,892,674
3,488,677
482,019
2,592
740,629
2,975,750
589,949
3,314,052
1,693,063
96,846
223,168
713,245
10,163,816
897,219
1,733,409
2,302,140
481,622
23,751
34,856
77,973
249,601
1,488,630
13,207,539
1,487,168
Pennsylvania
Delaware, Maryland,
District of Colum-
bia, Virginia.West
Virginia, Ken-
tucky, Georgia,
Alabama, Louisi-
ana, and Texas
Ohio
3,146
31,247
6,665
6,050,608
4,026,440
686,033
Indiana and Illinois.
Other states
Total
9,330,783
14,493,936
130,302
23,955,021
9,412,772
16,604,509
177,638
26,094,919
<J Figures for 1910 include Maine.
PRODUCTION OF ELECTRIC AND MISCELLANEOUS STEEL.
According to the statistics of the American Iron Trade for 1910,
included in the total production of steel in 1910 there were 55,335
tons produced by various minor processes, including the electric
process, as compared with 22,947 tons in 1909, an increase of 32,388
tons. Included in this total of 55,335 tons of steel, 52,141 tons of
ingots and castings were made with electricity by 7 plants in Massa-
chusetts, New York, Pennsylvania, Indiana, and Illinois, as com-
pared with 13,762 tons made by 4 plants in 1909 in New York,
Pennsylvania, and Illinois. In 1910 about 50,821 tons were ingots
and about 1,320 tons were castings, and in 1909 13,456 tons were
ingots and 306 tons were castings. Practically all the electric steel
3510
UNITED STATES STEEL COEPOEATION.
was refined from metal taken from Bessemer converters and from
open-hearth furnaces. On December 31j 1910, one additional plant
for the manufacture of steel by electricity was being built, and
several plants were being projected. Work on one of the projected
plants has since commenced.
TOTAL PRODTTCTION OF STEEL.
The statistics of the production of various kinds of steel, so far as
has been recorded, are given in the following table. The first steel
E reduced in this country was probably made in Connecticut in 1728
y Samuel Higley and Joseph Dewey. Crucible steel was first suc-
cessfully produced in the United States in 1832 at the works of
WiUiam and John H. Garrard, at Cincinnati, Ohio. Bessemer steel
was first made in this country in September, 1864, by William F.
Durfee at an experimental plant at Wyandotte, Mich., and open-
hearth steel in 1864 by the New Jersey Steel & Iron Co. at Tren-
ton, N. J.
Production of steel in the United States, 1810-1910, in long tons.
Year.
Bessemer.
Open-
hearth.
Crucible.
Other
steel.
Total.
1810
917
917
1860
11,838
8,075
9,258
13,627
16,940
16,964
19,197
19,643
29,911
31 9fin
11,838
8,076
9,268
1863 ...
1864
1865
13 627
1866
16,940
1867
2,679
7,689
10,714
37,600
40,179
107,239
152,368
171,369
335,283
469,639
600,524
663,773
829,439
1,074,262
1,374,247
1,514,687
1,477,345
1,375,631
1,519,430
2,269,190
2,936,033
2,511,161
2,930,204
3,688,871
3,247,417
4,168,436
3,215,686
3,571,313
4,909,128
3,919,906
5,475,316
6,609,017
7,686,354
6,684,770
8,713,302
9,138,363
8,692,829
7,869,140
10,941,375
12,275,830
11,667,549
6,116,765
9,330,783
9,412,772
19,643
26,786
1868
1869
893
1,339
1,786
2,679
3,126
6,260
8,080
19,187
22,349
32,256
60,259
100,851
131,202
143,341
119,356
117,516
133,376
218,973
322,069
314,318
374,643
613,232
579,763
009,889
737,890
784,936
1,137,182
1,298,700
1,608,671
2,230,292
2,947,316
3,398,136
4,666,309
6,687,729
6,829,911
6,908,166
8,971,376
10,980,413
11,549,736
7,836,729
14,493,930
16,504,609
31,260
1870
68,760
73,214
1871
1872
26,125
31,059
32,436
36,180
36,163
36,098
38,309
50,696
64,664
80,145
75,973
71,835
63,270
67,599
71,973
75,375
70,279
76,866
71,176
72,686
84,709
63,613
61,702
67,666
60,689
69,969
89,747
101,213
100,562
98,513
112,772
102,434
83,391
102,233
127,513
131,234
63,631
107,355
122,303
6,911
12,244
5,672
11,266
9,202
10,647
7,640
4,879
7,568
2,720
2,691
4,999
4,663
1,615
2,367
5,694
3,682
5,120
3,793
4,484
4,548
2,806
4,081
858
2,394
3,012
3,801
4,974
4,862
5,471
8,386
9,804
9,190
8,963
14,380
14,075
6,132
22,947
55,335
142,964
1873
198,796
216,727
1874
1876
389,799
1876
633,191
669,618
731,977
935,273
1,247,336
1,688,314
1877
1878
1879
1880..
1881
1882..
1,736,692
1,673,635
1,660,879
1,711,920
2,502,503
1883 . .
1884
1885
1886...
1887
3,339,071
1888..
2,899,440
3,385,732
1889
1890..
4,277,071
1891
3,904,240
1892. .
4,927,681
1893
4,019,995
4,412,032
1894. .
1895
6,114,834
1896
5,281,689
1897
7,166,957
1898
8,932,857
1899
10,639,867
1900
10,188,329
1901
13,473,596
1902
14,947,250
1903
14,534,978
1904
13,869,887
1905 . .
20,023,947
1906
23,398,136
1907
23,362,594
1908
14,023,247
1909
23,956,021
26,094,919
UNITED STATES STEEL COEPOKATION. 3511
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3514 UNITED STATES STEEL OORPOEATION.
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field): Iron Age, Apr. 20, 1911, pp. 990-992.
. Recent discoveries and mines of Vermilion Range, Minnesota: The Mining
World, Apr. 22, 1911, pp. 827-830.
Zapffe, C. Geology of Cuyuna iron-ore district, Minnesota (Read to Am. Abbo. Adv.
Sci., Sect. E): ilining World, Mar. 18, 1911, pp. 585-588.
PUBLICATIONS ON MISSISSIPPI VALLEY AND GULP OF MEXICO IRON ORES.
CoMSTOCK, T. B. A preliminary report ou the central mineral region of Texas:
First Ann. Rept. Texas Geol. Survey, 1890, pp. 239-391.
. Report on the Geology and mineral resources of the central mineral region of
Texas: Second Ann. Rept. Texas Geol. Survey, 1891, pp. 555-664.
Eckel, E. C. Iron ores of northeastern Texas: BuU. U. S. Geol. Survey No. 260,
1905, pp. 348-353
-. t; ■
he iron industry of Texas: Iron Age, vol. 76, 1905, pp. 478-479.
Johnson, L. C. Report on the iron-ore regions of northern Louisiana and eastern
Texas: House Doc. No. 195, 50th Cong., Ist seas., 1888.
Kennedy, W. Iron ores of east Texas: Trans. Am. Inst. Min. Eng., vol. 24, 1894,
pp. 258-288.
. The age of the iron ores of east Texas: Science, vol. 23, pp. 22-25.
and others. Report on the iron-ore district of eastern Texas: Second Ann.
Rept. Texas Geol. Survey,' 1891, pp. 7-326.
Nason, F. L. Iron ores of Missouri: Missouri Geol. Survey Rept., vol. 2, 1892.
Paige, Sydney. Mineral resources of the Llano-Bumet region, Texas: Bull. U. S.
Geol. Survey No. 450, 1911, pp. 2&-29.
Penrose, R. A. F., jr. A preliminary report on the geology of the Gulf Tertiaries oi
Texas from Red River to the Rio Grande: First Ann. Rept. Texas Geol. Survey,
1890, pp. 3-100.
. The Tertiary iron ores of Arkansas and Texas: Bull. Geol. Soc. America,
vol. 3, 1891, pp. 47-50.
PUBLICATIONS ON WESTERN IRON ORES.
AuBURY, L. E. Iron structural and industrial materials of California, 1906, p. 297.
Ball, S. H. The HartvUle h-on-ore range, Wyoming: Bull. U. S. Geol. Survey No,
315, 1907, pp. 190-205.
. Titaniferous iron-ore of Iron Mountain, Wyoming: Bull. U. S. Geol. Survey
No. 315, 1907, pp. 206-212.
BouTWELL, J. M. Iron ores in the Uinta Mountains, Utah: BuU. U. S. Geol. Survey
No. 225, 1904, pp. 221-228.
UNITED STATES STEEL CORPOEATION. 3515
Chance, H. M. Iron mines of Hartville, Wyo.: Trans. Am. Inst. Min. Eng., vol 30
1900, pp. 987-1003.
DiLLER, J. S. Iron ores of the Redding quadrangle, California: Bull. U. S Geol
Survey No. 213, 1903, pp. 219-220.
Hardee, E. 0. The Taylor Peak and 'Whitepiae iron-ore deposits, Colorado: Bull
U. S. Geol. Survey No. 380, 1909, pp. 188-198.
and Rich, J. L. The Iron Age iron-ore idepoait near Dale, San Bernardino
County, Cal.: Bull. U. S. Geol. Survey No. 430, 1910, pp. 228-239.
Hbrshey, O. H. Amarillo iron and phosphate deposits: Min. and Sci. Press, Oct.
17, 1908, p. 535.
Jennings, E. P. Origin of the magnetic iron ores of Iron County, Utah: Trans Am
Inst. Min. Eng., vol. 35, 1904, pp. 338-342.
Jones, 0. C. An iron-ore deposit in the California desert region: Eng. and Min
Jour., Apr. 17, 1909.
. Iron ores of the Southwest (southern California): Mines and Minerals, Apr
1911, pp. 574-676.
Keyes, 0. R. Iron deposits of the Chupadera Mesa: Eng. and Min. Jour., vol. 78,
1904, p. 632.
Lakes, A. The Great CeboUa River deposits: Colliery Engineer, vol. 16, 1896, p. 267.
Lbith, C. K. Iron ores in southern IJtah: Bull. U. S. Geol. Survey No. 225, 1904
pp. 229-237.
. Iron ores of the western United States and British Columbia: Bull. U. S.
Geol. Survey No. 285, 1906, pp. 194-200.
and Harder, E. C. Iron ores of the Iron Springs district, southern Utah:
Bull. U. S. Geol. Survey No. 338, 1908.
LiNDGREN, W. A deposit of titanic iron ore from Wyoming: Science, new ser., vol.
16, 1902, pp. 984-985.
Paige, Sidney. The Hanover iron-ore deposits, New Mexico: Bull. U. S. Geol.
Survey No. 380, 1909, pp. 199-214.
Prbscott, B. The occurrence and genesis of the magnetite ores of Shasta County,
Cal.: Econ. Geology, vol. 3, 1908, No. 6, p. 465.
Smith, George O., and Willis, B. The Clealum iron ores, Washington: Trans. Am.
Inst. Min. Eng., vol. 30, pp. 356-366. 1901.
Upham, W. E. Specular hematite deposits, Planet, Ariz.: Min. and Sci. Press, Apr.
15, 1911, pp^^ 521-523.
Vallet, B. W. The iron ores and system of mining at Sunrise mine, Wyoming:
Min. Rep., Nov. 28, 1907.
PUBLICATIONS ON CUBAN IRON ORES.
Anon. Cuban ore deposits: Iron and Coal Trade Rev., May 1, 1908.
. Iron mining in Cuba: Iron Age, vol. 81, Apr. 9, 1908, pp. 1149-1157.
. The Mayan iron-ore district of Cuba: Iron Age, vol. 80, Aug. 15, 1907, pp.
421-426.
Chisholm, F. F. Iron-ore beds in the province of Santiago, Cuba: Proc. Colorado
Sci. Soc, vol. 3, 1891, pp. 259-263.
Cox, Jennings S., Jr. The iron-ore deposits of the Moa district, Oiiente Province,
Island of Cuba: Bull. Am. Inst. Min. Eng., Mar., 1911, pp. 199-216.
CuMiNGS, Willard L., and Miller, Bbnj. L. Characteristics and origin of the
brown iron ores of Camaguey and Moa, Cuba: Bull. Am. Inst. Min. Eng., Mai., 1911,
pp. 247-267.
Graham, T. H. Sigua iron mines, Cuba: Iron Age, vol. 41, 1888, p. 140.
Hayes, 0. W. The Mayan and Moa iron-ore deposits in Cuba: Bull. Am. Inst. Min.
Eng., Mar., 1911, pp. 239-245.
Kimball, J. P. Geological relations and genesis of the specular iron ores of Santiago
de Cuba: Am. Jour. Sci., 3d ser., vol. 28, 1884, pp. 416-429.
. The iron-ore range of the Santiago disfiict of Cuba: Trans. Am. Inst. Min.
Eng., vol. 13, 1885, pp. 613-634.
Leith, C. K., and Mead, W. J. Origin of the iron ores of central and northeastern
Cuba: Bull. Am. Inst. Min. Eng., Mar., 1911, pp. 216-229.
Souder, Harrison. Mineral deposits of Santiago, Cuba: Trans. Am. Inst. Min.
Eng., vol. 35, 1904, p. 313.
Spencer, A. 0. The iron ores of Santiago, Cuba: Eng. and Min. Jour., vol. 72, pp.
633-634. 1901.
. Iron ores of Cuba: Ann. Rept. Military Governor of Cuba for 1901.
. Three deposits of iron ore in Cuba: Bull. U. S. Geol. Survey No. 340, 1908,
pp. 318-329.
Occurrence, origin, and character of the surficial iron ores of Camaguey and
Oriente Provinces, Cuba: Bull. Am. Inst. Min. Eng., Mar., 1911, pp. 231-237.
3516 UNITED STATES STEEL COEPOKATION.
Weld, C. M. The residual brown iron ores of Cuba: Bull. Am. Inst. Min. Eng., Aug.,
1909, pp. 749-762.
WooDBEiDGE, D. E. Exploration of Cuban iron-ore deposits: Bull. Am. Inst. Min.
Eng., Mar., 1911, pp. 269-282.
GENBRAI, PUBLICATHONS ON IKON ORES.
Anon. Iron-ore resources of the world (summarized): Iron Age, Aug. 11, 1910, pp.
322-323.
BiBKiNBrNB, J. Iron ores: Mineral Resources of the United States, annual volumes
from 1886, 1887, and 1889 to 1905, inclusive.
. Iron ores: Mineral industries, pp. 3-30, Eleventh Census of the United
States, 1890.
Iron ore: Mines and quarries, pp. 395-434, Special Reports of Census
Office, 1902.
The production of iron ores in various parts of the world. In Sixteenth
Ann. Rept. U. S. Geol. Survey, pt. 3, 1894, pp. 21-218.
. The iron-ore supply: Trans. Ann. Inst. Min. Eng., vol. 27, 1897, pp. 519-528.
Beneficiating iron ores: Iron Trade Review, Feb. 2, 1911, pp. 265-272.
(Reviews roasting, washing, magnetic concentration, and briquetting of ores to in-
crease iron percentage.)
Iron ore and mining operation: Iron Trade Review, Jan. 5, 1911, pp. 49-63.
BuECHARD, Ernest F. Production of iron ore, pig iron, and steel in 1909: Mineral
Resources U. S. for 1909, pt. 1, U. S. Geol. Survey, 1911, pp. 71-99.
Cabot, G. L. Pyritic origin of iron-ore deposits: Eng. and Mm. Jour., Sept. 26, 1908.
Chance, H. M. A new theory of the genesis of brown hematite ores, and a new
soiurce of sulphur supply: Bi-mo. Bull. Am. Inst. Min. Eng., Sept., 1908.
. Pyritic origin of iron-ore deposits: Eng. and Min. -Jour., Aug. 29, 1908.
Eckel, E. C. Utilization of iron and steel slags: Bull. U. S. Geol. Survey No. 213,
1903, pp. 221-231.
. Iron ores of the United States: Bull. U. S. Geol. Survey No. 260, 1905, pp.
317-320.
Iron ores, pig iron, and steel: Mineral Resources U. S. for 1906, U. S. Geol.
Survey, 1907, pp. 67-102.
Iron ores, pig iron, and steel: Mineral Resources U. S. for 1907, pt. 1, U. S.
Geol. Survey, 1908, pp. 51-85.
Eleventh International Geological Congress. The iron-ore resources of the
world, 2 vols, and atlas, Stockholm, 1910.
Harder, E. C. The production of iron ore, pig iron, and steel in 1908: Mineral
Resources U. S. for 1908, U. S. Geol. Survey, pt. 1, 1909, pp. 61-134.
Hates, C. W. Iron ores of the United States: Papers on the conservation of natural
resources: Bull. U. S. Geol. Survey No. 394, 1909.
. The iron ores of the United States: Iron Age, Apr. 29, 1909.
HoLDEN, R. J. Review of The Iron Ore Resources of the World: Econ. Geology,
vol. 5, No. 7, Oct.-Nov., 1910, pp. 689-693.
Jeans, Harold. The world's export trade in iron and steel and its regulation: Iron
and Coal Trade Rev., Nov. 27, 1908.
Kemp, J. F. A brief review of the titaniferous magnetites: School of Mines Quart.,
vol. 20, 1898-99, pp. 323-356.
. The supply of iron: Min. Mag., Nov., 1910. (A contribution to a discussion
before the International Geological Congress at Stockholm relative to the available
supply of iron ore.)
Leith, C. K. Iron-ore reserves: Econ. Geology, vol. 1, 1906, pp. 360-368.
PuMPELLY, R. Iron ores of the United States: Mining Industries, Tenth Census of
the United States, vol. 15, 1880. (Benton, E. R., Willis, B., Notes on samples^
Putnam, B. T., and Chauvenet, U. M. Notes on samples of iron ore collected for
analysis and on the ore deposits from which they were taken: Mining Industries,
Tenth Census of the United States, vol. 15, 1880.
Swank, J. M. American iron trade: Mineral Resources U. S., annual volumes,
1882 to 1904, inclusive; also annual statistical reports of the American Iron and
Steel Association, Philadelphia.
. Iron and steel and allied industries in all countries: Eighteenth Ann. Rept,
U. S. Geol. Survey, pt. 5, 1896, pp. 51-140.
Geologic Atlas of the United States, folios which contain sections on iron ores: " Nob.
2, 4, 5, 6, 8, 10, 11, 12, 14, 18, 19, 20, 21, 22, 24, 25, 28, S2, 33, 35, 36, 37, 40, 43, 44,
55, 56, 59, 61, 62, 64, 70, 72, 78, 82, 83, 84, 90, 91, 95, 101, 115, 116, 118, 120, 121,
124, 125, 126, 129, 135, 138, 139, 143, 151, 157, 161, 170, 171, 174, 175, 178, 179.
a Numbers ol folios containing Important notes on Iron ores aie printed In Italics,
UNITED STATES STEEL CORPOEATION. 3517
A Decade in United States Steel.
[Compiled by Dow, Jones & Co., publishers the Wall Street Journal.]
introduction.
The object of this booklet, entitled "A Decade in United States Steel " Is to
give the shareholders of the United States Steel Corporation, as well as Invest-
ors, a clear insight into general operations and vrhat has been accomplished by
the world's largest Industrial organization over the last 10 years. It seeks to
point out the uses to which earnings have been put, actual assets, after sinking
and depreciation funds charges, added to the property, the extent to which the
corporation has safeguarded its shareholders, additional security placed behind
the capital stock and bonds, and other developments either tending to enhance
or take away from valuation.
The analysis shows that United States Steel actually added to value of assets
from April 1, 1901, to December 31, 1910, after allowances for depreciation and
sinking fimds, $335,170,521. Depreciation and sinking fund allowances in the
same period amounted to $531,639,000, and there was added to value of mineral
holdings, through development and exploration work and acquisitions (not
including the ore properties of the Tennessee Coal & Iron Co. and the Hill ore
lands), a total of $350,000,000.
To December 31 last the United States Steel Corporation reported an aggre-
gate gross business of $5,813,243,724 and total net earnings of $1,202,214,515
Wages paid exceeded total net earnings by approximately $112,000,000 and total
dividend and interest payments by $654,000,000.
The surplus of the corporation available for dividends on the common has
averaged 9 per cent a year. The balance, after all charges, before deducting
dividends has averaged 20.5 per cent on the preferred stock. Capacity has been
increased 80 per cent without adding anything to speak of in the way of fixed
charges.
The downward tendency of steel prices has made heavy inroads upon the
earnings of the corporation. Compared with 1902, there has been an average
reduction in eight of the leading steel products of approximately $4.50 a ton.
On a production as large as last year this would mean a difference in earnings
to the Steel Corporation of nearly $50,000,000 a year. Earnings have been
maintained more through higher operating efiiciency and enlarged production
than anything else. Operating costs have also been enlarged through a con-
tinued increase in wages since the inception of the corporation.
The contents of this booklet cover, among other subjects reviewed by the
Wall Street Journal, the following: Increased earning power resulting from
expenditures for new construction and higher operating efficiency ; what has
been charged against income to offset value that has gone out of property
through deterioration, exhaustion of 'minerals, etc.; actual additions to assets
after sinking fund and depreciation charges ; fixed charges and preferred divi-
dend payments compared with what they were at time of organization ; in-
creased value back of the capital stock ; expenditures for new construction ;
sinking funds, depreciation, interest, and dividend charges; course of wages
and steel prices ; railroads of United States Steel compared with mileage of
several important systems ; earnings available for common stock since organiza-
tion ; security and earnings back of preferred stock ; operating ratio ; gross
business and what it consists of; outlook for the next 10 years in way of
earnings ; production, etc. ; output compared with steel production of European
countries and independent steel concerns of United States; tons of steel pro-
duced per man ; capitalization ; quarterly earnings and earnings per ton of
steel produced; steel stock sold to employees under profit-sharing plan; in-icn-
tories ; equipment owned ; working capital ; number of blast furnaces and steel
plants ; exports ; possible effect of reduced steel duties ; new bonds issued and
retired ; tons of various classes of steel produc^ed, etc.
Dow, Jones & Co.
May, 1911.
The United States Steel Corporation, the greatest combination of capital and
largest employer of labor in existence, rounded out a decade on JIarch 31, 1911.
Thfe totals which it has piled up in the first lb years' period guaruntee it the un-
31572°— No. 52—12 5
3518 UNITED STATES STEEL, COKPOEATION.
disputed right to the position of first place among the world's great aggregations
of corporate wealth for many years to come.
The magnitude and strength of United States Steel is reflected in total net
earnings from April 1, 1901, the date of organization, to December 31. 1910, of
$1,202,214,515 ; an aggregate gross business of $5,813,243,724 ; wages paid $1,314,-
904,189; sales of over 85,000,000 tons of finished and semifinished steel, and
dividend and interest payments, including subsidiary bonds, of approximatelv
$660,000,000.
That the employees of the corporation have no apparent reason for com-
plaint is evident from the fact that they were paid in aggregate wages a sum
greatly in excess of total net earnings. They received $712,000,000 more tlian
the stockholders and holders of United States Steel bonds. Still another indi-
cation that the Steel Corporation did not prosper through lower priced labor is
found in the fact that the average wage per man in 1910 was $800, the highest
level ever reached, comparing with $717 in 1902. and $720 in 1903.
The completeness and scope of the Steel Corporation's reports malje possible
some interesting comparisons and deductions over the last 10 years, as the
tables accompanying this analysis will show. Chairman Gary's poUcy of
publicity permits a more thorough insight into the general operations and
affairs of the corporation than is possible in the case of most corporations.
Shareholders who wish to keep informed as to the progress and development
of the respective corporations in which they have an interest usually seek in-
formation bearing upon the permanency of dividends and interest, whether pre-
vailing rates are justified by earnings, the amount expended for new construc-
tion and general upkeep of the properties, additions to assets over depreciation
and sinking-fund charges, dividends and interest, earning power, etc. The
statements of the Steel Corporation are designed to enlighten its bond and
stockholders on all these subjects.
At the beginning it will be found that the corporation has not only made
liberal charges for depreciation, but has appropriated hundreds of millions of
dollars for actual new construction work and replacements in order to keep
pace with the world's consumptive requirements of steel products. On April 1,
1901, the date of organization, the corporation had a capacity for rolled and
other steel and iron products " for sale " of 7,719,000 tons a year. At the pres-
ent time its capacity is close to 13,750,000 tons a year.
In an informal talk to shareholders, at the annual meeting on April 17, Chair-
man Gary remarked : " When the United States Steel Corporation was orRan-
ized, the total capacity of finishing mills was something like 23,000 or 24.000
tons per day. At the present time the producing capacity is nearly double that
amount.
" Therefore, although the mills are not running to more than about 70 per
cent to 73 per cent or 74 per cent of their capacity at the pi-esent time, you will
see that this is very much more than the total capacity at the time the corpora-
tion was organized. The manufacturing capacity of the mills during the last 10
years has increased generally. The independents, so called, have increased their
capacity a little more than we have increased our capacity. We started out
with about 60 per cent of the total business of the country, and at the present
time we have about 55 per cent on the average. It is our intention to keep the
proportion up to about that point. We do not intend to have more than 60 per
cent. We desire to avoid any question of monopoly."
This increase in capacity, amounting to approximately 80 per cent, as pointed
out by Dow, Jones & Co., has been brought about without any additional bur-
den to speak of in the way of fixed charges. As a matter of fact, the preferred
dividend and interest payments of the Steel Corporation are to-day nearly
$2,000,000 less than they were in 1902.
FIXED CHAEGES AND BONDS OUTSTANDING.
This decrease is largely the result of the conversion of $150,000 000 of 7 per
cent preferred stock into a similar amount of 5 per cent bonds Because of this
transaction there was a saving of $3,000,000 a year, representing the difference
of 2 per cent yearly between the 5 per cent on the bonds and tlie 7 per cent on
the stock converted. But in this connection it is interesting to note that had
the preferred stock not been converted into bonds there would have been an
actual mcrease of only $1,000,000 in outstanding bond, purchase money mort-
gage, bills payable, and rental obligations.
UNITED STATES STEEL COKPORATION.
3519
The following table gives the preferred dividend and interest payments in
1902 and 1910, which bear out the above :
1910
Preferred dividend payments
Interest on United States Steel bonds
Interest on subsidiary bonds, purchase-money obligations, etc
Total
Net decrease
$25,219,677
23,366,760
7,263,452
55,849,889
1,904,665
$35,720,177
15,187,850
6,840,427
57,754,454
The following table gives the increases or decreases in outstanding United
States Steel bonds, bonds of subsidiary companies, mortgages, and purchase-
money obligations from time of organization to December 31 last:
Outstanding.
Changes.
1911
1901
$465,189,500
131,130,661
3,097,792
$303,757,000
00,978,900
31,153,944
1 $161,432,500
Subsidiarv bonds
170,151,761
Mortgages, purchase money, etc
2 28,066,152
Total
599,417,953
395,889,844
1203,528,109
Deduct $150,000,000 prelerred stock converted into similar
150,000,000
53,528,109
1 Increase. ^ Decrease.
In connection with the changes in outstanding bonds it is necessary to add
that the Steel Corporation has redeemed bonds which are held by trustees of
sinking funds to the amount of $51,641,500. Interest accretions on these bonds
which are necessarily paid into sinking funds are beginning to reach large pro-
portions. For example, the total accretions and other receipts last year aggre-
gated $2,420,094, of which $1,702,701 were from United States Steel bonds
and $657,393 from subsidiary bonds.
As the Steel Corporation has not burdened Itself with any great amount of
fixed charges through construction work, idle plants in periods of depression
are not the expense they would be had they been built with borrowed money.
The only charge attached is the necessary allowance for depreciation. Then,
again, concentration of operations and the construction of new works at more
advantageous points of consumption should result in much greater economies of
manufacture.
NEW CONSTEtJCTION.
The Steel Corporation from date of organization to December 31 last ex-
pended for new construction $362,452,383 and for extraordinary replacements
$113,361,931, a total of $475,814,314. This total amount, with the exception of
$61,733,000, was provided from the current earnings and surplus of the organ-
. ization. The $61,733,000 represents moneys realized from the sale of bonds,
mortgages, and purchase-money obligations of subsidiary companies.
Extraordinary replacements, however, can not be classed as actual new
construction. Appropriations for this purpose are utilized for the rehabilitation
of departments and plants through entire rebuilding or rearrangements and
Installation of labor-saving devices, etc. They are designed to provide for the
current depreciation and obsolescence which are constantly taking place in
' physical conditions of a property. The $362,452,383 expended for new construc-
^ tion was for actual new plants, such as those located at Gary, Ind., the total
■ expenditures on the latter to date amounting to approximately $70,000,000.
' The increase in the Steel Corporation's capacity comes almost entirely from
expenditures of the stated $362,452,383 for new construction, the acquisition
I' of the Union and Clairton Steel Cos. and the Tennessee Coal, Iron & Railroad
i Co. The acquisition of the three companies mentioned involved an outlay of
something like $80,000,000 in bonds. The combined finished steel capacity of
3520
tTNITED STATES^STEEb TronJroxtJixJ-v^j-'.
these three companies at time of acquisition amounted to 1,143,000 tons, and
the remaining increase of approximately 5,000,000 tons resulted from expendi-
tures from earnings for new construction. In connection with the acquisition
of the Union and Clairton Steel Cos. and Tennessee Coal, Iron & Railroad Co,
it is only fair to state that at time of acquisition their combined blast furnace
capacity was 2,228,000 tons, a figure considerably in excess of finished steel
capacity.
There are various methods of arriving at an estimate of the actual addition
to the assets of the Steel Corporation since organization. A number of writers
in making their estimates have included depreciation, embracing sinking funds
and extraordinary and special replacements. As the moneys appropriated for
such purposes are used entirely to ofiEset deterioration of plants, exhaustion of
minerals, etc., they can hardly be regarded In the light of actual additions to
property assets.
The proper way would seem to be as follows, so far as actual additions to
assets are concerned :
Undivided surplus on hand Dec. 31, 1910 $164,143,157
Deduct surplus provided at organization 25,000,000
Balance 139, 143, 15T
Add appropriation from surplus to cover capital expended 40,000.00
Balance 179, 143, 157
Payments from surplus for property constructed, etc 156,027,364
Balance 335, 170, 521
The final balance is equivalent to approximately $66 a share on the common
stock outstanding.
From April 1, 1901, to December 31 last there was appropriated from earn-
ings $265,639,000 for depreciation and sinking funds, not including ordinary
repairs.
DEPBECIATION ALLOWANCES.
An analysis of the annual reports of the United States Steel Corporation since
organization seems to indicate that allowances from earnings for depreciation
have been liberal, comparing favorably with charges made by other corpora-
tions. An increase is shown each year. Last year, for example, they reached
$71,198,000 (including ordinary repairs), comparing with $25,960,000 in the last
nine months of 1901, $48,800,000 in the full year 1902, $67,800,000 in the boom
year of 1907, and $49,300,000 in the depressed year of 1908. In the lirst nine
months of the corporation's existence depreciation charges, including ordinary
repairs, were equivalent to 1.8 per cent of the property account; in 1902, 2,7
per cent ; in 1903, 3.7 per cent ; and in 1904, 2.6 per cent. In 1910 they estab-
lished a new high record, reaching $71,198,000, or 5 per cent of the property
valuation.
The following table gives the aggregate allowances from -gross income for
depreciation, together with the per cent of such allowances to property account
from time of organization to date, to cover deterioration arising from wear and
tear of improvements, exhaustion of minerals, and for obsolescence :
Depreciation
and sinking
funds.
Ordinary
repairs.
Total.
Per cent
depred-
ation to
property
account.
1910 .
$30,198,000
29,349,000
22,360,000
32,857,000
35,565,000
28,046,000
18,207,000
29,293,000
27,814,000
11,960,000
141,000,000
35,000,000
27,000,000
35,000,000
29,000,000
24,000,000
18,000,000
22,000,000
21,000,000
'14,000,000
171,198,000
64,349,000
49,350,000
67,857,000
64,665,000
52,046,000
36,207,000
61,293,000
48,814,000
26,960,000
5.0
1909.
4.3
1908
3.3
1907
4.7
1906
i7
1905
3.8
1904
2.6
1903
3.!
V
1901
1.8
Total
265,639,000
266,000,000
531,639,000
,
<■ Estimated.
UNITED STATES STEEL, COEPOEATION. 3521
In consideration of the corporation's investment in fixed property and tlie fact
that a very large proportion of this investment is in iron ore, fuel, and other
minerals, which is being exhausted at a rate probably not more than 2 per cent
a year, together with the large amount of the capital invested in railroads,
steamships, etc., the conclusion could be reached that depreciation allowances
have been fair. Accordingly, it follows that to the extent that it invests its
surplus remaining after providing for depreciation allowances in plants and
new property, the expenditures for new construction from income constitute
a new Increased value added to property.
It will be observed from the above table that United States Steel in nine
and three-quarter years made the large depreciation allowance of $531,639,000,
equal to more than 37 per cent of the present property valuation of $1,430,000,000.
Allowances of $71,200,000 last year were at the rate of $712,000,000 every 10
years, equal to about 50 per cent of the present property valuation.
After all depreciation charges, dividends, interest, etc., the corporation shows
a balance carried forward to surplus of $326,153,000 (not including the
$25,000,000 surplus provided at time of organization), against which there are
various charges, mostly for new construction, of approximately $209,651,000.
The final surplus after those charges is $164,143,000, including the $25,000,000
working capital provided at date of organization, and $22,681,554 subsidiary-
company surplus.
The large sums the Steel Corporation has spent for new construction, together
with depreciation charges and actual additions to assets, make it evident that
the physical and financial position of the company is being well taken care of.
ACTUAL INCREASE IN ASSETS.
In connection with depreciation charges It is generally understood that the
Steel Corporation charges off at the rate of more than 10 per cent a year for
steel-plant and blast-furnace deterioration. With a 50-year iron ore and fuel
supply, depreciation charges on mineral lands evened are proportionately small.
The allowance for railroad and steamship depreciation is also considerably less
than in the case of mills, furnaces, etc. Besides, it is generally unders^ood that
the Steel Corporation's "proven Iron-ore tonnage" is larger to-day by
300,000,000 or 400,000,000 tons than it was at time of organization, notwith-
standing that it consumed close to 200,000,000 tons in the last 10 years. The
greatest percentage of this increase resulted from development and exploration
work, the remainder from acquisitions. The Great Northern and Tennessee
Coal & Iron properties do not figure in the foregoing calculation.
With the facts, figures, and deductions above it is possible to summarize
what the Steel Corporation has accomplished since organization in the way of
allowances from Income for depreciation, actual additions to assets from in-
come, and Increased value of " proven " supply of ore holdings, as follows :
Depreciation allowances :
Expenditures for ordinary repairs from gross
income $266, 000, 000
Depreciation and sinking funds 265, 639, 000
Total $5311 639, 000
Actual additions to assets:
Undivided surplus (less $25,000,000 provided
at time of organization) 139,143,157
Appropriated surplus to cover capital ex-
pended 40, 000, 000
Payment of capital obligations and construc-
tion from net income 156, 027, 364
Total actually added to value of assets after
allowance for depreciation as above 335, 170, 521
Increased iron-ore valuation :
Increa-se in " proven "' iron-ore holdings from time of organi-
zation to date, based upon $1 a ton 350, 000, 000
Total 1. 216, 809, 521
The above table shows that $531,639,000 has been allowed for depreciation,
which has been utilized for losses sustained through exhaustion of minerals
3522 UNITED STATES STEEL CORPOEATION.
and general deterioration. The $335,170,521 represents a new increased value
added' to property in tlie way of undivided surplus, expenditures, and appro-
priations for new construction, etc. Tbe $350,000,000 is the added value of
" proven " ores based upon an increase of 350.000,000 tons. In explanation,
Charles M. Schwab, at time of organization, estimated that the Steel Corpora'
tion had a visible ore supply underground of 700,000,000 tons, compared with the
present estimate of between 1,000,000000 and 1,100,000,000 tons. The $1 per
ton valuation is based upon the approximate royalty which the United States
Steel Corporation is paying for use of the Hill ores this year. The Hill prop-
erties are supiwsed to contain approximately 300,000,000 tons of iron ore, and
the Tennessee Coal & Iron Co.'s holdings are estimated at 700,000,000 tons,
making a grand total of about 2,000,000,000 tons of possible iron ore under-
ground controlled by the United States Steel Corporation. As the corporation
to date has consumed at the rate of only 20,000.000 tons a year there need be
no apprehension over future supplies of raw material.
Adding the increased value in ore holdings through exploration and develop-
ment worli and acquisition, exclusive of the Tennessee Coal & Iron and Hill
deposits, to the $335,000,000 actual value added to assets from income, gives a
total of approximately $68.3.000,000.
The total of $1,216,809,521 is simply given in order to show what the cor-
poration has carried to undivided surplus, charged out of income for deprecia-
tion and construction, and added to value through increased mineral holdings;
all this total, as explained above, by no means representing an actual addition to
assets.
INCREASE IN CAPACITY.
The net result of the corporation's expenditures for new construction, acqui-
sitions, etc., according to the Wall Street Journal, has been the stated increase
in the capacity of finished steel products "for sale" from 7,719,000 at time of
organization to IS.T'iO.uOO tons; steel ingots from 9,42.'),000 to 18 000,000 tons,
and blast-furnace capacity from 7,-140,000 to 16,000,00(1 tons. This is au in-
increase of 78 per cent, 91 per cent, and 1] 5 per cent, resi>ectively, from time of
organization to date.
From these figures it is possible to estimate the increase in the earning
power of the corporation since organization. The ratio of total earnings per
ton of steel produced since 1901 has averaged approximately $14. Therefore,
on this basis, the earning power at time of organization would have been
$108,100,000, comparing with $192,500,000 at the present time, an increase of
approximately SO per cent. In this connection, however, it is well linown that
the tendency of steel prices has been downward since the organization of the
Steel Corporation and wages upward, so that on this basis earning power is
now considerably less per ton of steel produced than it was in 1901. For ex-
ample, the ratio of total net earnings per ton of steel produced " for sales " in
1902 was $16.25, the highest level reached in any year since organization. The
second highest level reached was in the boom year of 1907, when the ratio
was $15.24 ; in 1910 it was $13.14. The earning power on a capacity of 13.750,000
tons of finished steel " for sale," based on last year's ratio of $13.14 per ton,
would be approximately $180,000,000 a year.
The problem that now confronts the Steel Corporation, as well as other steel
companies, is whether or not the consumptive requirements of the country liave
Increased to a point sufficient to absorb the increased capacity which has been
growing at a rapid rate over the last five years. The concensus of opinion is
that it will lie several years before consumption catches up with present ca-
pacity, but the outlook does not seem to discourage the Steel Corporation so
far as plans for additional new construction are concerned.
QUESTION OF OVERPRODUCTION.
In this connection Chairman Gary said : " By the rapid Increase In production
we have reached a point where, as applied to the business which Is offered at
the present time, we have rather more capacity than we need. That is tiue
of all the manufacturing plants in our lines at the present time. However, all
of us belie\ e that we have not increased too rapidly, but that it is merely a
question of time perhaps when the mills will be running to their full capacity.
"As usual, the introduction of bills in Congress, particularly bills relating to
the tariff, has an effect upon the purchasing putjlic which causes some doubt
or distrust and timidity, and that is true of the present extra session of
Congress.
TTITITED STATES STEEL COEPOSATlOK. 3523
" The bookings which I have referred to have been made up of purchases of
our products generally pretty well distributed, except with reference to the lines
which the railroads have been in the habit of buying. As you know, notwith-
standing that the railroads usually buy about 33J per cent of the entire prod-
ucts, for some time past they have been buying only about 7 per cent or 8 per
cent. As the railroads have neglected to purchase during the last year or so, it
naturally follows that their necessities have correspondingly increased and
piled up. It is only a question of time when they must buy liberally."
Chairman Gary, in his last annual report, makes the statement that the
amount unexpended on authorizations for additional property, extensions, con-
struction, and extraordinary replacements approximated $50,000,000, and that a
large percentage of this total will be expended in the current year. Additional
blast-furnace construction in the United States, based upon statistics furnished
in January, may be as large this year as in preceding years. But there are
grounds for the belief that expenditures for new construction by the Steel
Corporation and independent steel companies will be much smaller in the next
five years than they were in the preceding five years. Since 1904 it is esti-
mated that there has been expended or appropriated for new blast-furnace and
steel-mill construction in this country close to $500,000,000. The Steel Corpora-
tion's share was not far below 50 per cent of the total.
STEEL PRICES COMPABED.
Overproduction may have a considerable bearing upon the future course of
steel prices, but it can be said that, under the " harmony of relations " plan of
maintaining reasonable and stable quotations, prices in recent years have been
held very well in periods of depression. With the exception of the temporary
price war, which started in February, 1909, prices have not been allowed to
decline to a level disturbing to the steel industry in general.
However, the tendency of steel prices has been downward since the organiza-
tion of United States Steel. In 1902, for example, the average price for ship
plates, Pittsburgh was $35.84 a ton, compared with $32.62 a ton in 1910. The
present price is $31.36. In the boom period of 1907 the average price was
$38.08, so that to-day's quotation is approximately $7 a ton below what it was
a little over three years ago. Wire nails to-day are selling on a basis of $40.32
a ton, compared with $45.02 in 1907, and $50.40 in 1901.
Steel bars show a reduction of $4.50 a ton compared with the yearly average
in 1907, and more than $6 a ton compared with the yearly average in 1902.
Beams are ofC nearly $7 a ton from the yearly average of 1907 and 1908, and $4
a ton from the yearly average of 1901 and 1902. The present price of tin plate,
$82.88, compares with the yearly average of $87.96 in 1907 and $89.60 in 1901.
Steel billets are off $7 a ton compared with the yearly average of 1902 and
nearly $6 a ton from the average of 1907.
In 1907 the yearly average price of eight steel and iron commodities, namely,
steel rails, ship plates, wire nails, steel bars, beams, tin plate, Bessemer iron
and steel billets, was $40.63 a ton. The average price on May 1, 1911, for the
same products was $35.50, so that the average reduction amounts to approxi-
mately $5 a ton. Since 1902 the average shrinkage of the eight commodities
above mentioned amounts to about $4.50 a ton.
Assuming that the Steel Corporation turned out and sold on an average
10,000,000 tons of steel a year, this difference in average prices from 1902 to the
present time would theoretically mean a shrinkage in total net earnings of
$4.50 a ton, or $45,000,000. The Steel Corporation, as has been stated, has
advanced wages of its employees in the face of a continued shrinkage in the
prices of its commodities. This increase in wages, combined with the reduction
in the price of steel, is responsible for the failure of the company to make as
good a showing in income from the standpoint of earnings per ton of steel as
was the case in the first two or three years after its organization. Consumers
have received the benefits derived from this shrinkage in steel prices, and it
is because quotations compared with former years are so low that producers
are reluctant to make further concessions from the present level. Earnings
of the Steel Corporation have been obtained more through enlarged production
and higher operating efficiency than from enhanced prices of steel products.
An evidence of the larger amount of the Steel Corporation's earnings going
to employees is found in the fact that the average wage per man in 1910 estab-
lished the new high record of $800 a year, comparing with $717 in 1902, an
increase of 12 per cent.
3524
UNITED STATES STEEL, (JUKJi'UKATlUJN .
The following table, published by the Wall Street Journal, gives the average
yearly prices per gross ton of eight leading steel products from 1901 to 1910,
inclusive, together with the so-called oflScial prices as of Slay, 1911, in dollars:
Year.
Steel
rails.
Ship
Dlates,
Pitts-
^Yire
nails,
Pitts-
Steel
bars,
Pitts-
Beams,
Pitts-
burgh.
Tin
plate
mill.
Bessemer
iron.
Pitts-
Steel
billets,
Pitts-
Average.
burgh.
burgh.
burgh.
burgh.
burgh.
1911
28.00
31.36
40.32
31.36
31.36
82.88
16.75
23.00
36. SO
1910
28.00
32.60
40.09
32.03
32.92
80.64
17.19
25.39
36.11
1909
28.00
31.70
40.70
29.56
31.58
78.40
17.41
24.68
35.24
1908
28.00
36.84
• 44.35
33.15
36.73
82.88
17.07
26.31
38.17
1907
28.00
38.08
45.02
35.84
38.08
87.96
22.84
29.23
40.63
1906
28.00
35.84
41.56
35.39
38.08
88.56
19.54
27.41
39.29
1905
28.00
35.61
39.42
35.39
35.28
78.40
16.36
24.69
36.64
1904
28.00
34.62
40.32
29.56
34.49
76.38
13.76
22.08
3489
1903
28.00
35.84
44.12
34.94
36.84
89.76
18.88
27.93
39.54
1902
28.00
35.84
44.57
37.40
35.38
88.03
20.15
30.32
39.96
1901^
27.40
34.87
60.40
32.92
35.39
89.60
15.72
24.13
38.80
Note.— 1911 prices represent present prices.
CAPACITY AND PRICES.
To go back to the Increased capacity of the Steel Corporation, the following
table gives one a good idea of what has been accomplished in this connection
since time of organization :
Product.
Capacity.
Percent
Jan. 1, 1911.
Apr. 1, 1901.
increase.
B last fumace
Steel ingots
Finished steel
Cement
tons. .
do....
do....
tarrols..
16,000,000
18,000,000
13,750,000
8,000,000
7,440,000
9,425,000
7,719,000
600,000
116
91
78
1,500
With a capacity almost twice as large as it was at time of organization and
an actual addition of more than .$350,000,000 to assets, the general conclusion
would be that average dividends at the rate of 7 per cent on the preferred
stock and 5 per cent on the common were assured. The argument of investors
who are confident the trend of common dividends over the next decade will
be upward is that, as the corporation started the first 10 years of its career
with a finished steel capacity " for sale " of 7,719,000 tons a year, and during
that decade showed an average surplus of more than 9 per cent available for
dividends on the common stock, it should make a much better showing during
the next 10 years, as it begins its second decade with a capacity close to
14,000,000 tons. But in this connection earnings have not grown proportion-
ately with increased capacity, due largely to the downward tendency of steel
prices, a continued advance in wages, and other factors tending to increase
costs, and the failure of consumers over the last several years to keep the steel
mills fully employed. As an example, sales of the corporation's steel products
last year were about 3,000,000 tons below actual capacity. If the corporation
spends $50,000,000 for new construction this year it may have a finished steel
capacity of 14,500,000 tons by January 1, 1912; and with a corresponding in-
crease in the capacity of the independent companies, it is doubtful if consump-
tion catches up with capacity within the next few years. If consumption does
overtake capacity this or next year, then the country can prepare itself for
the biggest steel boom in its history. Prices could not fail to advance materially
above the present level, and the Steel Corporation could then give Its earning
power a test and prove whether, as asserted, it can easily earn $200,000,000
a year with reasonable prices and normal operations. The corporation has
already demonstrated an earning power in excess of $200,000,000 a year. For
example, in October, 1907, when capacity was much smaller than it is at present
but steel prices much higher, it earned over $17,000,000, which was at the
rate of close to $205,000,000 a year.
UNITED STATES STEEL CORPORATION. 3525
EABNING POWER.
The record of the Steel Corporation in the matter of earnings over the last
10 years has been encouraging. In no full year has the net income fallen
to a level not sufficient to meet preferred dividend requirements. The nearest
approach to the danger mark was in the depressed year of 1904, when there
remained a surplus a little In excess of $5,000,000 after the payment of 7
per cent on the preferred. The corporation, from 1901 to date, could have paid
5 per cent on the common stock each year and then there would have remained
a surplus averaging more than $20,000,000 a year.
An evidence of the earning power behind the preferred and common stocks of
the Steel Corporation Is found in the fact that it required from net earnings to
pay all charges prior to dividends on both issues, in the year 1910, $53,647,571,
or an average of $13,411,892 for each quarter ; and from April 1, 1901, to January
1, 1911 (nine and three-quarters years), it required $480,901,674, or an average
of $12,330,812 for each quarter.
Assuming $53,647,571 as necessary to deduct from net earnings as above per
year (for depreciation and replacement funds, interest on bonds, and require-
ments of sinking funds), it will be observed from past record of net earnings
that this amount was earned in : 1906 in first 4i months ; 1907 in first 4 months ;
190S in first 8 months ; 1909 in first 6 months ; 1910 in first 6 months.
The feeling in United States Steel circles is that the greater part of the water
Injected into the property at time of organization has been eliminated, and that
in periods of temporary depression it will be only fair to shareholders to resort
to bond issues for new construction, if necessary, in order to maintain the 5 pec
cent rate on the common. The corporation has already issued a comparatively
small amount of subsidiary bonds for new construction, but bond redemptions
last year exceeded by more than $10,000,000 the new issues created during that
period.
THE COTTNTET'S IEON OUTPtTT.
What the next 10 years has in store for the United States Steel Corporation
and the steel industry in general can not be foretold. If the growth of the
Industry is as pronounced over the next 10 years as it was over the last 10 years,
and prices are as well maintained, nothing less than record earnings and a
pronounced Increase in production and consumption can be looked for. As an
example, pig-iron production 10 years ago was running' at the rate of about
16,000,000 tons a year. Last year the output of the country reached the new
high record of approximately 27,000,000 tons. The blast furnaces of the country
with their present capacity are in a position to turn out not far from 32,000,000
|:ons a year, making allowances for banking of furnaces, for relinlng, and other
necessary repairs. If the growth in production over the next decade is as pro-
nounced as it was in the last 10 years, the blast furnaces of the country, in the
year 1920, will find no difficulty in turning out between 40,000,000 and 50,000,000
tons a year.
Possible tariff changes and overproduction are the two important adverse
factors confronting the steel industry which may create a lower level for steel
prices, but the various steel concerns are in a better position to stand a long
period of low prices than they have been in* years. In the event of lower prices
the Steel Corporation would be more strongly fortified than many of the inde-
pendent companies. Its ratio of net earnings (after deductions for depreciation
and sinking funds for subsidiary bonds) per ton of steel produced and sold has
ranged between $9 and $13 since organization. The ratio of the independent
companies has averaged between $2 and $6 a ton. In this connection, however,
it is well understood that the Steel Corporation's large ratio of earnings per ton
is due to the greater diversification of its products and earnings from companies
that are not directly associated with the manufacture of steel. Its railroads,
which have a total mileage, including spurs, sidetracks, etc., of 3,307 miles ; its
203 steamers and barges, cement plants, interest on bank balances of $50,000,000
or more, etc., constitute a large percentage of the total income of the corporation.
In connection with capacity, manufacturers feel confident that, while the ex-
pansion has been a little too rapid over the last five years, consumption within
a few years will be able to take care of present capacity at least. Prices for
steel have declined to a point sufficient to bring forth the argument that any
further reaction would be temporary, and might be followed by a quick re-
covery.
3526
UNITED STATES STJLJi-ij (.u±vjr
VJi-\.rt.i J-vyx^ •
SURPLUS FOB COMMON STOCK.
The greater concentration of steel production at western points has strength-
ened the fortifications of the United States Steel Corporation against an in-
vasion of foreign steel into this country. It has already spent $70,000,000 on
its Gary plants, added largely to the capacity of the Illinois Steel Co. plants,
and is now building a great steel plant at Duluth. These three subsidiaries,
when the work planned is completed, will have a capacity of over 4,000,000
tons of finished steel a year. With other western plants owned by the corpo-
ration one-third, if not more, of Its production will be centralized in the Middle
West, thereby giving It a great advantage in freight rates in competition with
steel laid down at Atlantic seaports for shipment to western points. When
the Steel Corporation was organized most of its production was confined to
Pennsylvania and Ohio.
It required about $104,000,000 of the Steel Corporation's earnings last year
to meet all charges, including the 5 per cent dividend on the common. In a
depressed year the company could probably get through, without reducing the
common dividend, on total earnings of slightly less than $100,000,000. It would
be helped out by smaller charges against earnings for depreciation, as e.\-
haustion of minerals is much less pronounced in depressed periods than when
the mills are fully employed.
The following table gives the total net earnings, actual surplus available for
the common stock, and the final surplus that would have remained each year
since organization had 5 per cent been paid on the common stock each year from
1901 to 1910, inclusive.
Year.
Net earnings.
Surplus for
common.
Per cent
surplus
lor com-
mon.
Surplus after
5 per cent on
common.
1910 - ..
1141,064,765
131,479,476
91,847,710
160,964,670
156,624,273
119,787,668
73,176,521
109,171,152
133,308,763
a 84, 787, 696
J62-,187,508
53,854,017
20, .WO, 036
79,345,886
72,908,909
43,365,816
6,047,862
26,012,478
64,586,347
2 33,846,000
12.20
10.60
4.00
15.60
14.30
8.50
1.00
5.00
10.70
26.60
J36,772,383
1909
28,438,892
< 4,906,089
1908
1907
63,930,761
1908..
47,493,784
1905
17,960,690
1904
>20,367,ro
1903 . .
I 402,647
29,171,222
1902
1901
18,430,750
1 Possible deficit had 5 per cent been paid on common.
' Nine montlis.
From the above it is plain that the corporation, had it paid 5 per cent on
the common each year since organization, would still have been able to show a
surplus at the rate of more than $20,000,000 a year. Then again there would
have been only three years to show a deficit, namely, 1903 with $402,647,
1904 with $20,367,273, and 1908 with $4,906,089.
PEECENTAGE OF OUTPUT OF CORPORATION.
A great deal has been written about the growth of the Steel Corporation's
production, compared with the increase in the output of the independent com-
panies. It is claimed that the Steel Corporation's relative position, from the
standpoint of percentage production to that of the country's total, is not as
strong as it was 10 years ago. In other words, the aggregate increase in the
output of the independent companies has been greater, proportionately, than
that of the Steel Corporation. Based upon production over the last decade,
United States Steel does show a falling off from 66.2 per cent to 54.3 per cent
in the percentage of its Ingot production to the country's total ; but this is not
absolute proof that the "capacity" of the corporation has been reduced pro-
portionately.
It will be recalled that the independent companies for the past few years have
been credited with operating, on the average, a larger percentage of capacity
than the corporation. In the latter part of last March, for example, the Steel
Corporation was operating about 72 per cent of maximum capacity, whereas the
independent steel companies were reporting between 80 and 90 per cent
The steel mills of the country would have to operate in full for a long period
TTNITED STATES STEEL COBPOEATION.
3527
In order to demonstrate beyond a doubt the extent of the Steel Corporation's
loss in actual per cent capacity compared with the country's total capacity.
The evidence presented to show that the corporation is less of a monopoly than
10 years ago is that its actual Ingot production in 1902 was equivalent to 66.2
per cent of the country's total, compared with 54.3 per cent last year. But in
the matter of pig-iron production the Steel Corporation seems to have held its
own, the range over the last 10 years being around 44 per cent. The corpora-
tion's percentage of blast-furnace production, for example, was 43.2 per cent
in 1902, and 44.5 per cent in 1910. In this connection it will be recalled that
United States Steel in the earlier years of its existence did not have sufficient
pig-iron capacity to supply its own finishing mills, and was a purchaser in the
open market to the extent of between 500,000 and 1,000,000 tons a year. With
the increase in iron capacity from 7,740,000 tons in 1901 to 16,000,000 tons in
1911, it is now independent. The withdrawal of United States Steel and sev-
eral of the other large steel-making companies from the iron market is largely
responsible for the depressed condition of the merchant blast furnaces. With
these large consumers out of the market, as a result of the creation of their
own sources of iron supply, the merchant furnaces have been having a hard
time of it over the last few years.
One reason for the falling off of the Steel Corporation's percentage of ingot
production is the increasing percentage of ingot tonnage that enters into Its
more highly finished forms of steel.
DIVERSIFICATION OF PBODTJCTS.
Since organization. United States Steel's policy has been for a greater diversi-
fication of its products, particularly highly finished forms. Therefore, a great
part of the finished steel converted from ingots commands higher prices than
does that converted into rails, structural shapes, plates, etc., and at the same
time gives employment to many additional men. As is well known, a greater
percentage of the ingot is lost in its conversion into the more highly finished
lines. The corporation shows a decrease in the tonnage of billets and other
semifinished lines marketed. As an example, sales of billets, blooms, sheet
bars, etc., in 1910 amounted to 682,364 tons, compared with 783,637 tons in 1902.
Wire sales show an increase from 1,122,000 tons in 1902 to nearly 1,500,000 tons
in 1910.
The following table gives the Steel Corporation's production of the various
classes of steel " for sale " in 1902 and 1910 :
Finished products.
1902
Steel rails ,
Blooms, billets, sheet bars, etc
Plates
Merchant steel bars, skelp, hoops, etc
Heavy structural shapes
Tubing and pipe
Wire rods
Wire and products of wire
Sheets and tin plate
Finished structural work
Angle, splice bars, and joints
Spikes, bolts, nuts, and rivets
Axles
Steel car wheels
Sundry iron and steel products
Total finished products
Tons.
2,118,473
683,364
929,020
1,627,506
656,797
868,650
133,722
1,490,318
1,082,787
689,228
235,998
71,326
101,066
98,105
148,735
10,733,995
Tom.
1,920,786
782,637
649,541
1,254,560
744,062
109,330
.,122,809
783,676
481,029
139,954
42,984
136,787
29, 177
A feature of the above showing is the constant increase in wire production.
There has been a continued expansion in output with the exception of two years.
Merchant steel bars and shapes also show a large increase, due in part to the
increased demands of the harvester companies. The latter classes of steeJ
were grouped together in 1902. They were separated later on and are now
classified under the heads of " merchant steel bars, skelp, hoops, etc.," and
"heavy structural shapes." The total in 1902 was 1,254,560 tons, comparing
with 2,184,303 tons last year.
3528
■UNITED STATES STEEL COEPOBATIOir.
The following table gives the percentage production of various classes of steel
to the total finished steel output " for sale " of the United States Steel Corpo-
ration in the years 1910, 1907, and 1902 :
1902
Rails
Wire
Steel bars, lioops, etc
Tinplate, sheets, etc
Finistied structural work
Plates
Tubing and pipes
Blooms, billets, etc
Heavy structural shapes.
Miscellaneous steel i
Total
19.7
15.1
14.3
10.0
6.5
8.7
8.1
6.3
6.1
6.2
16.7
15.5
12.7
10.3
6.9
8.4
11.3
7.3
6.6
6.3
23.4
15.0
15.3
9.5
6.8
7.9
9.0
9.5
100.0
100.0
4.6
100.0
J Includes angles, splice bars, spilces, bolts, nuts, axles, steel car wheels, and sundry iron and steel products.
OUTPUT COMPAEED WITH FOBEIQN COUNTRIES.
The actual production of the Steel Corporation has not shown a large increase
when the fact is taken into consideration that capacity has been Increased to
the extent of 80 per cent But, as stated, the consumption of the country has
not yet increased to a point that would enable the corporation to fully employ
its mills. The completion of the Gary plants, for example, means an additional
2,500,000 tons, including capacity, in the present partly completed state of the
works.
The magnitude of the Steel Corporation's operations is shown by comparing
its ingot production over the last few years with that of the four great steel
producing countries — the United States, Germany, United Kingdom, and France.
The Steel Corporation, in fact, is producing several million tons more ingots a
year than Germany, and twice the tonnage of the United Kingdom. The ingot
capacity of the United States Steel Corporation, amounting to 18,000,000 tons
a year, is within 3,000,000 tons of the entire production of the United Kingdom,
Germany, and France in 1909.
The following table gives the ingot output of the United States, Germany,
France, and the United Kingdom, in 1907, 1908, and 1909, compared with output
of the United States Steel Corporation, in tons :
1909
1908
1907
United states
23,955,000
11,856,000
6,931,000
3,020,000
14,023,000
11,007,000
6,341,000
2,679,000
23,363,000
11,870,000
6,522,000
2,706,000
TTnited tringdnTTi
Total
44,762,000
13,355,000
33,050,000
7,838,000
44,461,000
13,343,000
Cnited States Steel Corporation
United States Steel's percentage to total
30
24
1 Includes Lux-mburg.
The ingot production of United States steel in 1910 amounted to 14,180,000
tons.
The largest competitors of the Steel Corporation are the Lackawanna Steel
Co., Jones & Laughlin Co., Bethlehem Steel Corporation, Republic Iron & Steel
Co., Pennsylvania Steel Co., and Cambria Steel Co. These six companies have
a pig-iron capacity of less than 6,000,000 tons a year, or about 38 per cent of
the lG,000,000-ton capacity of the Steel Corporation. The largest competitor
of the Steel Corporation, perhaps, is the Jones & Laughlin Steel Co. but its
capacity is barely equivalent to 7J per cent of that of the big company.
There is not a steel company in this country with the relative strength of
the Steel Corporation in iron-ore holdings, vessels, railroad mileage and equip-
ment, cement, and other sources of income. There has been considerable gossip
of late in connection with a proposition to merge certain of the prominent
UNITED STATES STEEL, COKPOEATION. 3529
independent steel companies. Tlie large independents liave grown so rapidly in
steel production as to become a little unwieldy, and a merger such as proposed
might work for greater stability, but no merger in this country could be formed
that would give it an equal footing with the Steel Corporation in raw material,
transportation lines, and the many sources of income that are not directly
associated with the manufacture of steel.
INCEBASED EXPOET TEADE.
One of the greatest achievements of the United States Steel Corporation has
been the building up of a large export business. Progress in the matter of
opening foreign markets for a percentage of the output of the corporation has
been rapid over the last few years, and exports now make up between 10 per
cent and 15 per cent of products " for sale." In 1908 the United States Steel
Corporation exported 799,000 tons; in 1909, 1,009,000 tons; in 1910, 1,223,000
tons, and the current year starts ofC with prospects of close to 1,500,000 tons.
It is true that the margin of profit on steel sold for export is not as large as in
the case of domestic sales, but at the same time benefits from this class of busi-
ness are not lacking.
Export business keeps plants that might othervsrise be idle in operation and
tends to lower cost of production as well as the prices of steel sold to the domes-
tic consumer. Last year export business constituted about 13 per cent of total
shipments and the average number of employees of the corporation was 218,000.
It would seem, therefore, that foreign shipments were responsible for the em-
ployment of between 25,000 and 30,000 men. At times it is deemed proper by
the corporation to sell steel for export below the domestic costs. While such
a policy may not meet with the tarifC views of all, it has provided an outlet for
steel in depressed periods and kept thousands of men employed who might
otherwise have been idle if the business had been confined to this country alone.
It has been the aim of the management of the corporation to build up a per-
manent export trade so that foreign markets can be relied upon to take a
certain percentage of output at all times.
The growth of the corporation's export business shows conclusively that it is
becoming firmly entrenched in foreign markets, and in the event of a radical
scaling down of duties on steel may become an even more formidable competitor
of European steel companies. With a capacity not far below the aggregate
production of Germany and the United Kingdom, it is a factor to be reckoned
with. Europe may be able to produce steel cheaper than the Steel Corporation
at the present time, but this is due largely to the difference in the cost of labor.
The corporation pays out in wages each year a sum far in excess of its total
earnings. A severe cut in steel duties might be followed by a drastic scaling
down of the corporation's wage schedule and operating costs in general, which
would place it in a much stronger position to meet competition from its foreign
rivals._ But this is a problem more easily solved after Congress has revised
the steel schedule — that is, if there is to be any revision. To sum up the
situation, the corporation seems to be in a position to fairly meet any con-
tingency that may arise from a scaling down of steel schedules. Profits and
wages might be adversely affected, but the ability of foreign manufacturers
to make heavy inroads into the steel business of the United States is open to
question. The corporation has already established a strong foothold in for-
eign marts and it would require very low foreign steel prices to dislodge it
from its position,
WAGES AND TONNAGE.
Some interesting deductions can be made from United States Steel's average
yearly wages, number of men employed, and steel production. Taking the aver-
age finished steel " for sale " production per total number of men employed,
it is found that in 1902 the average output per man was 49 tons. On account of
the many labor-saving devices Introduced, concentration of operations, and in-
creased production, the conclusion would be drawn that the average production
of finished steel per man ought to show an increase; but it is found that the
figure in 1910 is the same as in 1902, namely, 49 tons. One explanation ad-
vanced is that the corporation is producing a larger percentage of highly
finished steel " for sale " to total output than at time of organization, which
accounts largely for the similarity of the figures. For example, the corporation
3530
UNITED STATES STEEL CORPOEATION.
could market its billets and the tonnage sold would be practically the same as
if these same billets were converted into, say, wire products. If it were decided
to erect wire mills to absorb these billets, more mills would be necessary and
additional men would have to be employed to operate them. The finished steel
" for sale " production per man reached the highest level in 1906, when 52 tons
were reported, and the lowest level was in 1908, with 38 tons.
Finished steel production per man employed in manufacturing plants only
has followed the course of finished steel production per all men employed by
the corporation vory closely. For example, in 1902 production "for sale" to
total number of employees in the manufacturing departments only wrs 65 tons.
There was a jump to 72 tons in 1906, the highest level ever reached. Last year
the figure was 63 tons.
Production of iron ore per man employed in the ore mines only makes a
better comparison. Or produced per man in 1902 averaged 592 tons, from
which there has been a steady increase, the figure reaching 786 tons in 1910.
A similar gain is reported in the coal and coke department. Average production
per man employed in 1902 was 1,193 tons, comparing with 1,554 tons in 1909
and 1,490 tons last year.
The average wage increase per ton of steel produced, as stated by Dow, Jones
& Co., has not been in sympathy with the movement of finished steel production
per man. In 1902 the average wage per ton of steel sold was $14.70, and in the
following year $16.40. Th low level was reached in 1905, when $13.80 was re-
ported, and the highest In 1908, with $19.40. Last year the average was $16.30.
The following table gives the finished steel production " for sale " per man.
based upon total employees of the corporation; finished steel production "for
sale " per man, based upon employees in manufacturing departments only ;
average wage per man based upon each ton of steel produced " for sale " ; iron-
ore production per man, based upon number of employees in mines only; and
average coal and coke production per man, based upon total number of men
employed in coal and coke departments, from 1902 to 1910, inclusive:
Year.
Finished
steel per
man.
Manu-
facturing
depart-
ment
only.
WaRB
per ton.
Ore pro-
duced
per man.
Coal and
coke pro-
duced
per man.
1910
49
50
38
50
52
51
46
44
49
63
71
52
68
72
71
61
62
Ci5
S16.30
15. 30
19.40
15. 20
14.00
13.80
14.80
10.40
14.70
786
763
651
663
693
692
6S0
572
692
1,490
1,564
1,268
1,361
1,4.14
1 532
1909
1908
1907
1906 ,
1905
1904
1,239
1,116
1,193
1903
1902
It would require the most minute details of the operations of the Steel Cor-
poration from the mining of iron ore to its conversion into pig iron, then into
ingots, and lastly into finished steel, to arrive at a conclusion as to actual cost
of finished products. It is evident, however, that a percentage of the saving
resulting from concentration of operations, substitution of new and improved
machinery for the more obsolete types, and the introduction of economies in
general have been offset to a large extent by the upward tendency in wages.
WAGES AND EAUNINGS.
To show the important part increased wages have taken in adding to the
cost of producing steel it is necessary to go back to 1902, in which year the
average wage per ton of steel sold was $14.70, as against $16.30 in 1910. Had
the same average wage prevailed last year as In 1902, the mount the Steel
Corporation would have had to pay out in wages in 1910 on a production of
10,733,995 tons of finished steel would have been $157,700,000, compared with
the actual amount paid in 1910 of $174,955,000, a difference of more than
$17,000,000. Should the Steel Corporation enter into a period of depression
which threatened to be prolonged, or was forced to submit to a drastic revision
of the steel tariff schedule, it could cut the wages of its employees 5 per cent
and save more than $8,000,000 a year on a basis of wages paid in 1910. How-
UJNlXJiU STATES STEEL COKPOEATION. 3531
ever, Iclle mills and furnaces would cause a reduction in the uumber of em-
ployees, which would lower the foregoing $8,000,000 saving proportionately.
The policy of the Steel Corporation has been to maintain reasonable prices as
well as reasonable wages, believing the result will be to preserve a better organi-
zation as "well as improve the standard of labor. The corporation, it will be
remembered, declined to follow the general movement toward lower wages after
the panic of 1907. Only a year ago it granted substantial increases to its
225,000 employees.
The many plans In force for the general betterment of labor, the voluntary
accident relief plan, old-age pensions for employees, the purpose of which is to
provide an aggregate principal sum of $8,000,000, which, with the $4,000,000
fund of Andrew Carnegie, makes a total of $12,000,000 ; employees' stock sub
scription plan, elimination of Sunday work as far as possible, reduced hours,
and the bonus system, which means a distribution of between $2,000,000 and
$3,000,000 a year, have all tended to^vard closer and more harmonious relations
between employer and employee. In this connection it is interesting to note
that the United States Steel Corporation has experienced only one severe
strike — that shortly after the organization of the company. Disputes over labor
have been of minor importance. The tin-plate strike was not a matter of wages,
but a question of policy.
corporation's shareholders' list.
The shareholders of the Steel Corporation now number close to 100,000, esti-
mating the stock held abroad and in brokerage houses, the real owners of which
are not holders of record. There are approximately 25,000 employees of the
Steel Corporation who are stockholders of record, having purchased their shares
under the terms of the profit-sharing plan. In other words, employees of the
Steel Corporation itself are represented to the extent of close to 25 per cent of
the total shareholders' list. That employees have reaped benefits running into
millions of dollars through the profit-sharing plan is evident from the prices
paid for these shares. The average price paid for the preferred in the nine
years the plan has been in force was a little less than $96 a share, compared
with the present market quotation of $120 a share. The lowest level at which
employees obtained the preferred was $55 a share in 1904.
Common stock was purchased by the employees on a basis of $50 a share in
1909, and $70 in 1911, an average of $60 a share, compared with the present
mnrket price of $76. Appreciation In the shares amounts to many millions of
dollars, to say nothing of dividends and bonuses.
Over 1,000,000 shares of common and 300,000 shares of preferred, represent-
ing approximately 15 per cent of the total capitalization, are held abroad.
The large list of shareholders the Steel Corporation has built up in a period
of 10 years Is not attributed so much to the heavy capitalization as to the
open policy In making public all the Information necessary to enlighten share-
holders as to operations and other developments bearing upon the affairs of
the company. Chairman Gary inaugurated such a plan at the beginning. He
encountered considerable opposition on the part of certain interests who adhered
to the belief that corporations should confine their statements to the barest
details. The corporation's publicity plan has been widened in scope year by
year, and shareholders are in a position to obtain all the information necessary
to keep them posted as to the course of the company's business and operations
• in general. The more recent step toward wider publicity was the adoption and
execution of the plan making public monthly unfilled orders on the books. The
result has been that shareholders as well as the public in general are being
kept informed not only of the drift of the business of the United States Steel
Corporation but the steel industry in general.
The corporation's desire to keep its shareholders posted on current develop-
ments has influenced a great change in the methods of many other corporations.
Over the last 10 years annual statements that are of some service to the share-
holders have become more numerous. It is to be noted that the shareholders'
lists of the corporations that have adopted a wider policy of publicity show
much greater gains than the corporations that still adhere to abbreviated
reports or statements.
3532 IXKITED STATES STiilJ^lLi UUiUr'U
TCJCIT^ITX^*
OPEEATING COSTS AND GROSS BTJSINESS.
The Steel Corporation's operating ratio to gross business over the last 10
years has Been uniform, notwithstanding additional expenses In the way of
Increased wages, etc. This would seem to Indicate that expansion In costs in
one direction has been offset by higher operating efficiency in general. No
better proof of skilled and well-directed management could be obtained.
The Steel Corporation's ratio of operating costs to gross in 1902 was 73.4 per
cent, the lowest on record, compared with 75 per cent last year, or about 0.4
per cent below the average for the years 1902 to 1910, inclusive. In 1907 tlie
ratio of manufacturing costs to gross was about 0.5 per cent below 1910. Pro-
visional charges for depreciation are eUminated from costs in the foregoing
calculations, but ordinary repairs are Included.
Eliminating ordinary maintenance and repairs as well as depreciation al-
lowances from manufacturing and producing costs brings about a much lower
operating ratio to gross business. In 1910, on this basis, the ratio would have
been approximately 69 per cent, comparing with 71 per cent In 1909, 70 per cent
In 1907, 76 per cent in 1904, and 70 per cent in 1902.
The per cent of total net earnings to gross sales shows no marked variation
In the last six years, but the 1910 figure is about 3f per cent below that of 1902.
The ratio of net earnings per gross sales last year was 20.04 per cent, compared
with 23.75 per cent in 1902. The low level reached was 16.47 per cent in 1904,
although the depressed year of 1908 showed an improvement over the former
year, with 19.04 per cent
The following table gives the ratio of total net earnings of the Steel Cor-
poration to gross business from 1902 to 1910, inclusive :
Year.
Net earnings.
Net to
gross.
1910
$141,054,764
131,491,414
91,847,710
160,964,673
166,624,273
119,787,658
79,176,522
109,171,1.52
133,308,764
P.U.
20 W
1909
20.34
1908 . .
19.04
1907
2126
1906 . ...
22.48
1905
20.46
1904
16.47
1903. ...
20.36
1902
23.78
The gross business of the Steel Corporation includes revenues from all
subsidiary concerns. The amount represents the aggregate gross value of
commercial transactions conducted by the respective companies, and includes
sales made between subsidiary companies, and the gross receipts of the trans-
portation companies for services rendereid both to subsidiary companies and
to the public. The earnings resulting from gross business represent the com-
bined profits accruing to the several corporate interests on the respective sales
and services rendered, each of which in Itself is a complete commercial transac-
tion. As a result, gross business does not by any means represent the prices
received from tonnage of finished steel sold. Elimination of all sources of
income except receipts from finished steel alone would reduce the gross busi-
ness materially. But with its vast transportation system, cement plants, and
hundreds of millions of dollars invested in works that handle the ore from the
time it is taken from the ground until its conversion into finished steel, it
would seem that any other way of computing gross business would be de-
ceptive. With the many sources of income at its command, including earnings
from transportation, cement sales, income from money loaned, blast furnaces
and other works that handle the ore up to the time it is shaped into an ingot
ready for the finishing mills, there is nothing mysterious in the average ratio
of $14 per ton of steel sold over the last 10 years.
On a basis of prices received for 10,733,995 tons of steel sold in 1910, the
Steel Corporation probably received less than $400,000,000, although its gross
business was reported as nearly $704,000,000. The percentage of profits must
be reckoned against this total gross business rather than its gross sales of
total finished products, for within this finished product it has saved its share-
holders not only the steel manufa'cturer's profit, but the ore miner's profit,
J AM J. J. xziXJ iDA.£.
JPOEATION.
3533
the coal miner's profit, transportation profit, etc. These and other contributing
factors are responsible for the heavy gross receipts compared with average
steel prices.
EATIO OF GEOSS PER TON.
United States Steel's ratio of gross earnings per ton of steel sold shows quite
a drop over the last several years. For example, the ratio last year was
$65.59, compared with $65.55 in 1909, $77.70 in 1908, and $72.95 in 1907. In
1902 the ratio of gross business per ton of steel sold was $08.37. The annual
gross business of the United States Steel Corporation exceeds the combined
gross of its six largest competitors in this country four times over.
The Steel Corporation seems to have ample working capital to take care of
the business it has been doing over the last few years. An evidence of this is
found in the fact that it maintains at all times a cash balance running between
$50,000,000 and $65,000,000 and is always a lender of money. A good percentage
of its surplus has been utilized for the purpose of building up liquid assets.
In 1901, for example, the corporation reported excess current assets over current
liabilities of approximately $165,000,000. On December 31 last the excess was
$236,000,000, a gain within that period of more than $70,000,000.
Inventories have absorbed a large per cent of the increase in working capital.
As an illustration, inventories on December 31 last were valued at $176,000,000,
compared with approximately $105,000,000 on December 31, 1902. Naturally,
the heavy increase in the business of the corporation necessitates larger stocks
of ore, finished steel, etc.
The total inventory valuations of the United States Steel Corporation from
1902 to 1910, Inclusive, together with the value of the two largest items in the
classification, namely, iron ore and finished steel, follow :
Total
inventories.
Iron ore.
Finished
steel.
1910
$176,637,824
163,811,280
143,179,629
136,188,874
119,897,467
113,387,997
94,812,546
107,976,523
104,390,844
$80,345,434
67,692,137
65,783,299
58,984,718
42,330,919
38,877,141
36,205,977
42,018,988
34,072,939
$31,913,767
26,776,337
26, 999, 591
1909.
1908
1907
24,868,713
•21,626,657
1906. ...
1905
24, 140, 746
1904....
21,016,539
1903
21,564,586
1902....
18, 968, 393
With a capacity almost double what it was 10 years ago, there is nothing
strange in the pronounced increase in Inventory valuations.
Few people realize the extent of the Steel Corporation's mineral wealth out-
side of iron ore. Its acreage of coal, coke, and natural gas property represents
a stupendous investment in itself. It either owns outright or leases the
following coking and steam coal property :
Acres.
Total northern coal 234, 938
Total southern coal 347,637
Total 582,575
The Carnegie Natural Gas Co. has in Pennsylvania and West Virginia exten-
sive natural gas territory, either owning or having under lease 197,161 acres.
It owns 600 miles of pipe lines, 6 pumping stations, and 388 active wells.
The American Sheet & Tin Plate Co. has under lease 32,360 acres of gas terri-
tory, with 147 active wells. The National Tube Co. has under lease about
10,691 acres of gas territory and 5 developed wells.
At time of organization the corporation owned or had under lease less than
170,000 acres of steam and coking coal properties.
On December 31 last the corporation also had 74 coke plants. 23,008 beehive
ovens, 612 by-product ovens, and 30 coal plants not connected with coke plants.
31572°— No. 52—12 6
3534
UNITED STATES STEEL COEPOBATiUJN .
VAST SYSTEM OF BAILBOADS.
The railroad mileage operated by the Steel Corporation exceeds that of many
of the leading railroad companies. For example, the Steel Corporation on
December 31 last was operating 2.036 miles of main line, 350 miles of second
track, and 921 miles of yards and sidings, a total of 3,307 miles. The mileage
operated by the Steel Corporation is double that of the Reading and as large
as that of the Norfolk & Western. The Lake Shore operates only 700 miles
more than the Steel Corporation.
During the navigation season the Steel Corporation receives its heaviest earn-
ings from its transportation lines. This accounts for the larger earnings of the
second and third quarters as compared with the first and last quarters of the
year.
The Steel Corporation's mileage and equipment has been growing since its
organization. For example, in 1902 it had a total of 471 locomotives, compar-
ing with 1,168 last year. Freight and passenger cars owned in 1902 aggregated
26,164, comparing with 47,025 in 1910. The foregoing embraces only standard
gauge railroad equipment. In addition, the Steel Corporation has 203 steamers
and barges.
The following table, published by the Wall Street Journal, shows the mileage
operated by the Steel Corporation compared, with that operated by 17 impor-
tant railroad companies:
Main
line,
miles
oper-
ated.
Second,
third,
and
fourth
track.
Yards
and
sidings.
Total.
Boston & Maine
Central of Georgia
Central of New Jersey
Chesapeake & Ohio
Chicago & Alton
Delaware, Lackawanna & Western
Denver & Rio Grande
Lake Shore
Lehigh Valley
Long Island
Missouri, Kansas & Texas
New York, Ontario & A^'estern
Norfolk & Western
Reading
Texas APaclflc
Wabash
Wheeling & Lake Erie
United States Steel's railroads
2,290
1,912
669
1,964
998
956
2,598
1,663
1,433
395
3,072
493
1,950
646
1,885
2,515
513
2,036
664
6
334
438
146
512
100
1,151
687
180
128
349
371
49
110
1,317
657
620
780
357
1,031
565
1,167
1,141
219
787
226
996
487
559
801
332
921
4,171
2,475
1,623
3,182
1,501
2,499
847
3,295
1,504
2,493
UJSITJSD STATES STEEL OOKPOBATION.
3535
The following tables give the railroad and steamship make-up of the United
States Steel Corporation over a series of years:
Railroad mileage:
Mainline owned
Branches and spurs
Operated under track routes
Second track
Sidings
Total miles operated
Marine equipment:
Steamers
Barges
Total
Miscellaneous cars owned:
Delaware & Lackawanna R. R
Duluth, Missabe & Northern Ry. . .
Elgin, Joliet & Eastern Ry
Chicago, Lake Shore & Eastern Ry
Bessemer & Lake Erie R. R
Union Ry
All other railways
Iron-mining companies
Steel, coal, and coke companies
Birmingham Southern
Total
Locomotives owned
1910
711
377
350
921
3,307
SI
122
6,934
8,052
2,970
8,947
9,826
5,038
1,614
2,216
1,498
930
47,025
1,168
1909
557
458
322
824
1908
873
676
435
304
754
3,059 I 2,941
77
112
189
5,413
7,209
3,165
4,033
1,626
2,205
1,770
831
46,225
1,024
106
5,247
7,279
3,287
9,129
8,885
4,038
1,160
2,014
2,887
721
45,682
853
492
410
298
669
2,712
6,446
7,347
3,888
8,024
9,696
2,633
1,249
1,860
3,210
42,746
1906
1905
862
394
391
271
613
2,521
72
29
101
4,892
5,519
3,040
6,741
8,805
1,233
1,0-
1,063
3,208
34,591
768
814
350
297
215
641
2,217
70
30
4,501
4,665
2,688
6,179
8,933
1,126
1,048
295
3,400
31,735
690
1 Includes 70 wooden barges.
The growth of the Steel Corporation's transportation system has been as
rapid as that of steel production. The corporation, in fact, has about twice the
capacity for handling freight it had 10 years ago.
GAET DICTATES POLICY.
The afCalrs of the United States Steel Corporation are dominated by its
chairman, E. H. Gary. The by-laws give him absolute control over all depart-
ments and officers. In the absence of the chairman, the president is in charge.
Judge Gary is at the head of the . board of directors as well as the finance
committee. The board of directors holds monthly meetings and the finance
committee convenes once a week. The heads of the subsidiary companies hold
monthly meetings, but are subject to calls for special conferences at any time.
The trend of the steel industry last year was erratic. The various companies
enjoyed a fair business up until the last quarter, when there was a sharp slump
in Incoming business, followed by reduced operations. At the close of the
year the furnaces of United States Steel were operating not much more than
47 per cent of maximum capacity. A revival started in about the middle of
January, which carried blast-furnace operations of United States Steel up to
72 per cent of capacity. Since then there has been a reaction to 65 per cent
at this writing. The incoming new business of the corporation in the month
of January amounted to 35,000 tons a day, in February close to 41,000 tons a
day, in March between 35,000 and 36,000 tons a day, and in April 25,000 tons a
day. The amount of new business in the first quarter of the year if continued
would Indicate a production of finished steel " for sale " in 1911 of something
less than 10,000,000 tons, compared with actual production last year of 10,734,000
tons. This would enable the corporation to make a good showing in earnings
this year, but a great deal of business is being held back pending the Supreme
Court decisions in the Standard Oil and Tobacco cases and uncertainty as to
just what Congress proposes to do in the matter of revising steel duties. It is
altogether likely that the rulings of the Interstate Commerce Commission in
the freight-rate cases had a great deal to do with the failure of railroads to
enter the market for equipment on a larger scale, but for the last year or more
the railroads have become less of a factor in the steel trade, or, rather, their per-
3536 UNITED STATES STEEL COEPOBATIOW.
centage of steel tonnage consumed to the total has been considerably less than
In the past. As an example, the new orders received by United States Steel
from the railroads since January 1 represent less than 10 per Cent of the cor-
poration's total. That this Is out of all proportion to normal is evident when
it is considered that the railroads have been credited with consuming close to
35 per cent of all the steel turned out by the United States.
The Steel Corporation can credit its increased operations in the first quar-
ter of this year to demand for the lighter grades of steel and steel for export.
Had it not been for the better showing in tin plate, wire, etc., the first quarter
of 1911 would have recorded a very small volume of new business as well as
an even sharper falling ofC in earnings, compared with the first quarter of last
year.
BAILBOADS AND STEEL.
That the steel companies for the last several years have been laboring under
the belief that the railroads would continue to show a heavy increase in con-
sumption is evident from the preparations made for increasing the output of
steel rails. Four or five years ago the steel mills of the country had a rail ca-
pacity of between 3,500,000 and 4,000,000 tons a year. To-day the rail capacity
of the country is slightly in excess of 6,000,000 tons. In no year have the coun-
try's raihoads called for more than 4,000,000 tons. It would seem that, with a
capacity of 6,000,000 tons, at least one-third of the rail mills of the country
stand to remain idle until the railroads begin to increase their consumption
above past requirements. Renewals alone should guarantee the rail mills a
production averaging more than 3,000,000 tons a year, as there are in use in
this country to-day, according to recent estimates, between 45,000,000 and
50,000,000 tons.
United States Steel was justly criticized at time of organization for the
absorption of certain subsidiary companies at prices far beyond intrinsic valua-
tion. Certain interests were in doubt as to the ability of the corporation to
miiintain permanently even the dividend of 7 per cent on the preferred stock.
The policy of the management has been to eliminate the water that was injected
into the property at organization. Dividends of 4 per cent a year on the com-
mon for a short period after organization were not justified, and warranted
criticism. After 1904 the Steel Corporation, with much larger earnings, could
have resumed dividends at the old rate, but refrained from doing so, as the
program was for expenditures from earnings for new construction. In 1909
the management concluded that sufficient money had gone back into the property
to assure much larger earnings and therefore a better return on the common
stock. At the time the corporation placed the common stock on a 5 per cent
basis the claim was made that with expenditures of $50,000,000 a year for new
construction such a high rate could not be continued. The explanation was
tbat, if necessary, bonds would be issued in depressed periods to cover expendi-
tures for new construction, but with a much larger earning power it was be-
lieved few new securities would have to be issued for construction purposes.
The capacity of the Steel Corporation has reached such a high level as to war-
rant a less aggressive campaign for new construction. Chairman Gary says
that close to $50,000,000 will be spent for new construction this year, a large
amount of which will be used at Gary. This year should wind up, for several
years at least, excessive outlays for new construction, which have averaged
close to $50,000,000 a year since 1904. As the independent companies have kept
pace with the Steel Corporation in the matter of new construction work, it Is
probable the steel industry m general will soon begin to cut down expenditures
for new plants, acquisitions, etc.
riRST QTTABTEE OF 1911.
The report of the United States Steel Corporation for the first quarter of
the current year showed total net earnings of $23,519,203, making the aggregate
net earnings from time of organization, April 1, 1901, to April 1, 1911, the full
10-year period, $1,225,738,718. For the full 10-year period dividend payments
by the Steel Corporation aggregate a total of $406,621,584, and interest pay-
ments on United States Steel bonds, not including subsidiary company bonds,
$214,608,919, making total interest and dividend payments for the decade,
$021,230,503.
u JM ±XJH^ BiAXJia BTJJJEL. OUSPOBATION. 3537
The report for the first quarter, which showed a surplus of only $31,155,
demonstrates to what extent the Steel Corporation can cut down its deprecia-
tion charges in order to show a surplus after present dividend payments.
Charges and allowances for sinking funds In the first three months of this year
amounted to $3,517,386, a reduction of $2,001,132 compared with the last quarter
of 1910. Had charges for depreciation equaled what they were in the pre-
ceding quarter, a deficit would have been revealed.
The policy of the Steel Corporation since its organization has been to make
liberal allowances for depreciation in periods of prosperity, charging off more,
in fact, than necessary, so that in periods of depression it can afford to make
smaller charges for exhaustion, deterioration of plants, etc.
The report for the first quarter does not make a very favorable opening for
the year 1911, but manufacturers are confident that before the end of the year
the steel business will be operating to normal capacity. In fact, there are a
number of conservative manufacturers who are building hopes upon a decided
turn for the better in July. They base their contention upon the universal
ease of money, the excellent crop outlook, the small stocks of steel as well as
other commodities in the hands of consumers, the quickening pace of business
in Europe, the demand for bonds, the large amount of money in the hands of
investors awaiting investment, etc. One manufacturer says the stocks of steel
carried by consumers at the present time are the smallest in 10 years. With
heavy crops in view, producers of steel argue that the railroads, before the close
of the year, will flud it necessary to purchase equipment in order to take care
of the increase in traffic.
Every year since the organization of the Steel Corporation net earnings in
the second quarter have shown an increase over the first quarter, due largely
to increased income through the opening of navigation on the Great Lakes and
the greater activity of transportation in general. One satisfactory feature of
the report for the first quarter was the heavy increase in earnings from Janu-
ary to March. The gain, in dollars, was the largest reported within any single
quarter since the organization of the corporation. But with prospective changes
in steel duties, and the country's crops not absolutely assured, it would be
difficult to forecast the course of the steel industry over the remaining months
of the year, although manufacturers express confidence in a recovery within the
next two or three months, -
3538
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IRON ORES OF THE UNITED STATES.
By C. W. Hates,
United States Geological Survey.
INTRODUCTION.
No previous inventory of the iron-ore supplies of the United States
in any detail has ever been published, and the present one must be
considered only a first approximation which will be materially modi-
fied as new quantitative data are made available by future public and
private investigations. The estimates of ore supplies given in this
paper are not based upon the judgment of any individual, but so far
as possible represent the consensus of opinion of those best qualified
to form an opmion. Cordial cooperation in making up the estimates
has been given by officers of private corporations and the several
state geological surveys and by economic geologists and mining
engineers generally. Special acknowledgments are due to Messrs.
W. N. Merriam, C. K. Leith, D. H. Newland, H. M. Beuhler, W. S.
Bayley, T. L. Watson, R. C. Hills, and J. F. Kemp, who have fur-
nished information which could not have been obtained from any
other source.
CHEMICAL CLASSIFICATION.
The commercial ores of iron, on the basis of chemical composition,
fall into two main classes, i. e., oxides and carbonates. The latter
class is relatively unimportant, furnishing in the United States less
than one-twentieth of 1 per cent of the annual production. The
oxides are further separated, according to the proportion of oxygen
and combined water which they contain, into three classes. The
chemical and commercial classification is therefore as follows :
1. Magnetite. — ^Magnetic oxide, FegO^, including titaniferous mag-
netite. Theoretical iron content, 72.4 per cent. Generally containing
some hematite.
2. Hematite. — Anhydrous sesquioxide, FejOj, including specular
and red hematite, red fossil ore, oolitic ore, etc. Theoretical iron con-
tent, 70 per cent.
3. Brown ore. — Hydrous sesquioxide, FcjO^nHjO, including tur-
gite, limonite, goethite, or a mixture of these minerals, known locally
as brown hematite, bog ore, etc. Theoretical iron content, 59.8-66.2
per cent.
4. GarTjonate. — Siderite, iron carbonate, FeCOj, known locally as
spathic ore, black band ore, kidney ore, etc. Theoretical iron con-
tent, 48.2 per cent.
' ^ 3545
3546 UNITED STATES STBECrUDKrDica^inxrrri
GEOLOGIC CLASSIFICATION.
In their geologic relations and mode of occurrence the iron ores
may be further classified as follows :
1. Magmatic segregations in basic igneous rocks. — The titaniferous
magnetites of the Adirondack region represent this type. A charac-
teristic of such deposits is the perfect gradation from the ore into the
surrounding rock by an increase in the gangue, which consists of the
same minerals as the associated igneous rock. The deposits are of
great size and present large possibilities of utilization by concen-
tration or with modification of furnace practice which will permit
their economical reduction.
2. Contact deposits, formed in connection with the intrusion of
igneous rocks at their contact with the intruded sediments, generally
limestones. — These appear to be due to ascending heated waters and
vapors given off by the cooling igneous rock. The ores include both
magnetite and hematite. Typical examples are the Cornwall de-
posits of Pennsylvania and many of the western iron-ore deposits, as
those at Hanover, N. Mex., and Iron Springs, Utah.
3. Concentration deposits. — These include all forms of the oxide
ores in which the iron, originally disseminated through the rocks, has
been dissolved, transferred, and redeposited by circulating waters.
It includes most of the brown ores of the Appalachian region in which
the iron was originally disseminated through a great mass of lime-
stones and shales and has been leached out and concentrated by sur-
face waters during the erosion of these rocks. In some cases the iron
was probably deposited as carbonate or sulphide and subsequently
changed in place to hydrous oxide. It includes the bog-ore deposits,
which have been formed or are now forming in swamps, to which
iron is brought in soluble form as organic compounds and precipi-
tated by the breaking up of those compounds through oxidation.
4. Replacement deposits. — These are closely related to the concen-
tration deposits, the principal difference being that the ore-bearing
solution has derived the iron from an outside source and deposited
it in place of some definite portion of an original rock series, gener-
ally a limestone. They include all classes of ores, both oxides and
carbonates, their composition depending on the conditions of deposi-
tion and the subsequent alterations which they have undergone. An
example of this type is the so-called Oriskany ore of Virginia. In this
case the iron derived from a great mass of overlying shales has been
carried in solution, and where structural conditions were favorable
deposited in place of a certain easily soluble bed of limestone for a
variable distance from its outcrop.
5. Bedded deposits. — These include all deposits in which the ore
forms tabular or lenticular bodies which lie parallel to the bedding
or foliation of the inclosing rocks. Their origin may be diverse, but
their common characteristic is great lateral extent compared with
thickness. In many bedded deposits, though not in all of them, the
ore is sharply differentiated from the surrounding rocks. Magnetite
deposits oi^ this type are the Adirondack ores associated with meta-
morphic sediments and with gneisses of uncertain origin. Of the
hematite deposits of this type are the enormous deposits of the Lake
Superior district, where certain beds of the iron formation have been
enriched both by the removal of silica in solution and by the depo-
UNITED STATES STEEL COEPOEATION. 3547
sition of additional iron. It also includes the gray specular ores of
Alabama, which are associated with Cambrian and pre-Cambrian
slates and sandstones, and the important red ores, fossil and oolitic,
which form regular sedimentary beds, differing only in composition
from associated Silurian sandstones and shales. Of the carbonates
it includes the black-band ores, which occur as layers of nodules or
continuous beds associated with the " Coal Measures " in Ohio and
Pennsylvania.
6. Gossan deposits. — Iron sulphides tend to oxidize with loss of
sulphur when exposed to surface weathering, and deposits of pyrite
and pyrrhotite are therefore generally covered with a deposit of re-
sidual brown ore, which extends down to the level of permanent
ground water. Examples of this type are the brown ore on the out-
crop of the pyrrhotite veins at Ducktown, Tenn., and the iron-ore
capping of many metalliferous veins in the West.
Referred to the ultimate source of the material, it may be stated
in general that the iron ores are derived from the iron minerals either
segregated or disseminated in igneous rocks or the iron minerals de-
posited by igneous emanations, which have been worked over in
varying degrees by the agents of weathering and sedimentary and
chemical deposition at the surface of the earth. Iron compounds are
among the most stable substances under surface conditions, and hence
the net result of the changes at the earth's surface is to concentrate
iron minerals mechanically and chemically as compared with asso-
ciated minerals.
VALUE OP ESTIMATES.
An understanding of the above chemical and geologic classifica-
tions of iron ores is essential for an appreciation of the limitations
and imcertainties of any estimate of the ore supplies of the country.
It will be readily understood that with the great diversity in type
of deposits there must be a very wide difference in the degree of ac-
curacy with which the ore can be estimated. The closest approxima-
tion can be made in case of bedded deposits such as the Clinton red
hematites. These beds vary in thickness and composition from
place to place, but the variations are similar to those characterizing
other sedimentary beds such as coal, and with a minimum amount
of testing on the outcrop and at depth their contents can be calcu-
lated with a fair degree of certainty. Certain assumptions, however,
must alwaj'^s be made. Thus it is assumed that observed variations
in composition and thickness continue with regularity between and
beyond points of observations; also that a certain depth will limit
workability. This limiting depth will depend upon a variety of
conditions which can not be determined in advance of mining, and
hence the depth fixed upon in making calculations will be largely a
matter of opinion, and must be expected to change with changing
commercial conditions. Hence it is doubtful if even the best known
and most thoroughly tested deposits of red hematite can be estimated
within 10 per cent of their actual yield. At the other extreme are
the concentration deposits of brown ore. These are extremely vari-
able both in depth and horizontal extent. Surface indications are
thoroughly unreliable, and those most experienced in working such
deposits are practically unanimous in the opinion that no deposit can
be safely estimated until evei^ ton of ore has been mined. Under
3548 UNITED STATES STEEL COBPOKATION.
such circumstances the estimates given below of ore remaining in
this class of deposits can only be regarded as having a degree of accu-
racy represented by a factor varying between 0.7 and 3.
Intermediate between these extremes are the most important depos-
its, including those of the Lake Superior and Adirondack districts.
The former by reason of their greater regularity and the thoroughness
with which they have been tested may be considered as known within
15 or 20 per cent. The latter are much less fully tested, and estimates
of their probable yield are based upon assumptions which further
development may prove to be erroneous. Estimates of the western
ore deposits vary in value because of inherent uncertainties due to the
nature of the deposits and to the very unequal information concern-
ing different districts.
AVAILABILITY.
Any estimate of the iron-ore supplies of the United States must
separate the ores into two classes on the basis of availability. This
separation is difficult, and opinions vary widely as to where the
line should be drawn. Evidently the question is one of costs:
(a) The cost of the ore delivered at the furnace and (b) the cost
of reduction. Actual production, past and present, being determined
by the interaction of various factors, affords the best criteria of
availability.
The two factors which enter most directly into the cost of ore at
the furnace are accessibility and mining conditions. Many iron-ore
deposits are known in regions so remote from fuel supply and from
transportation lines that they may be considered unavailable at
present or so long as they are compelled to compete with more accessi-
ble ores. At the same time they must be taken into account in con-
sidering the total reserves, for accessibility is only relative and no
deposit, if sufficiently large to warrant the expenditure necessary for
constructing roads, can be regarded as permanently inaccessible.
Distance from fuel is, of course, a more serious drawback than
absence of present means of transportation, while those supplied with
water transportation will bear a longer haul than those carried en-
tirely by rail.
Mining conditions may be such as to make the cost of raising the
ore prohibitive at present. Such conditions are limiting depths
beyond which mining, on account of the amount of water, may become
very expensive, or tliinness of the beds which necessitates a large
amount of dead work. These conditions apply particularly to the
Clinton ores and explain the difference between the total amount
proved in these deposits and the amount considered at present avail-
able. Many deposits of brown ore can be worked cheaply in open
pits for a certain distance from the surface, while the cost of strip-
ping or of timbering to hold back the inclosing clay prevents their
working to greater depths.
Another kind of limiting conditions arises from the fact that in
many cases the ore is mixed with foreign material from which it must
be separated. Thus many of the brown ores consist of small concre-
tions scattered through clay, and a large amount of material must
be passed through the washer to obtain the ore in suitable condition
for the furnace. The ratio of ore to clay in deposits now being
worked varies from 1 : 5 down to 1 : 20. When conditions permit the
UNITED STATES STEEL COEPOEATION. 3549
lowering of this ratio still further, large quantities of ore will be
available in material which can not now be worked at a profit.
Similar conditions control the availability of many of the magnetic
deposits, except that here the objectionable elements are other min-
erals that are closely associated with the iron and must be separated
by magnetic methods. The concentrated material is a high-grade
ore, and the ratio of available to nonavailable in these deposits de-
pends wholly upon cost of the process of concentration which they
will bear in competition with other ores.
The second consideration affecting availability is the character
of the ore itself. The content of metallic iron in ores used at present
varies from 30 to 65 per cent. This wide variation is due in part
to the nature of the other elements in the ore and in part to advan-
tageous location. Thus the Clinton ores, containing as low as 30 per
cent iron, can be used with advantage, because the lime which they
contain makes them practically self-fluxing. At the same time they
must be used near the point of production, since the low content of
iron will not permit long transportation in competition with richer
ores. On the other hand, siliceous ores containing less than 40 per
cent iron are not considered at present available unless their location
near the fuel is exceptionally favorable, since the cost of transporta-
tion per unit of iron is excessive and since a large amount of fuel is
required to remove the silica. But there are enormous quantities of
siliceous ore carrying from 35 to 40 per cent iron, particularly in the
Lake Superior district, and this must be taken into account as a
future reserve, though not at present available.
In the case of the titaniferous magnetites the ratio between the
available and not available is difficult to determine. While these
ores have been used only to a limited extent because of the difficulties
attending the fluxing of the titanium, it seems probable that these
difficulties will be overcome and a much larger use made of them
either by employing a special flux in the furnace or by reducing the
percentage of titanium in the charge by concentration or mixing
with nontitaniferous ores.
The percentage of other constituents, such as phosphorus, sulphur,
copper, chromium, manganese, and alumina, will determine the
method and cost of reduction and the quality of the resulting iron.
Hence these constituents, some of which are highly deleterious, may
determine the question of availability by limiting the conditions under
which the ore can be reduced or the product used.
Another factor is the nature of ownership. Where a large corpora-
tion controls a variety of ores and is equipped to assemble them and
form any desired mixture or grade, ores may be used with advantage
which would not be available if held by a smaller company not in
a position to control the situation in a large way or compelled to
dispose of a single kind of ore in the open market.
Because of the varying importance of these factors, future availa-
bility will obviously vary in a corresponding degree and the ad-
vantage which one district now possesses may jjass to another. As
the higher-grade ores of the Lake Superior region become depleted
the lower-grade ores will be called upon with consequent increase in
cost of transportation and smelting. The low-grade ores of the south-
eastern district, at present competing with the high-grade Lake Su-
31572— No. 52—12 7
3550 UNITED STATES STEEL COEPOEATION.
perior ores, will then have a decided advantage because of proximity
to fuel supply.
The notable present tendency in the iron industry is the lower
average iron content in the ores used. This tendency will undoubt-
edly continue in the future as the more easily accessible portions of
the richer deposits are worked out. As a corollary to this is the ob-
served tendency toward a decentralization of the iron industry, and
with a decrease in the iron content of the ore used, involving a corre-
sponding increase in cost of transportation per unit of iron, there
will be an increase in the proportion of fuel which goes to the region
producing the ore. This will be accompanied by the general adoption
of by-product coking. It is an instructive fact that in certain fur-
naces now operating in the Lake Superior district the profit corre-
sponds approximately to the value of the by-products from the coke
ovens.
In making estimates all of these considerations, together with the
best forecast that can be made of conditions as they will exist in the
next ten years, have been taken into account in determining the ratio
between available and nonavailable supplies.
GEOGKAPHIC AND GEOLOGIC DISTRIBUTION.
Iron being one of the most abundant elements, fourth in order of
abundance, its natural compounds are found in practically all rocks
and soils. To constitute an ore, however, certain of these minerals
must be segregated into deposits of sufficient size and purity to permit
economical working. Such deposits, considering the entire area of
the country, are relatively infrequent. Iron ore is at present pro-
duced in only 2.9 of the 47 States and Territories, and about 79 per
cent of the production (1907) was from two States — Minnesota and
Michigan. It is evident that the distribution of the deposits is ex-
tremely uneven.
For convenience of description of the ores and discussion of the
estimates the known ore deposits will be taken up by groups based on
distribution and kind. A few deposits are not included in any of
these groups, but the total tonnage of ore which they contain is so
small as to be negligible in an estimate of the total for the entire
country. The groups of deposits to be considered are the following:
(1^ Lake Superior ores; (2) Adirondack ores; (3) Clinton ores;
^4) Appalachian metamorphic ores; (5) Appalachian brown ores;
(6) Appalachian carbonate ores; (7) West Tennessee brown ores;
(8) East Texas brown ores; (9) Ozark ores; (10) Roclg^ Mountain
metamorphic ores; (11) Igneous contact ores.
(1) LAKE SUPEEIOR ORES.
[Based on information furnished chiefly by C. K. Leith.]
GEOLOGIC EELATIONS.
The Lake Superior ores, chiefly hematites with subordinate amounts
of magnetite, furnish approximately 80 per cent of the annual iron-
ore production of the country. The total production from the region
from its opening to the close of 1907 has come from the ancient folded
TTNITED STATES STEEL CORPORATION.
3551
and metamorphosed pre-Cambrian formations in Michigan, Minne-
sota, and Wisconsin in proportions shown in the following table :
Oeologie sources of Lake Superior iron ores.
District.
Geologic horizon.
state.
Keewattn.
Middle
Huronian.
Upper
Huronian.
fMesabi
Fer cent.
Per cent.
Per cent.
39.45
\Vennllion
7.105
f Gogebic
12.24
21.90
.50
Menominee, Including Crystal Falls,
lion RiTei, etc.
15.46
1.98
Wisconsin (3.308 per cent). . . .
1.26
Baraboo ...'-
.068
The iron formations are sedimentary deposits, usually interbedded
with slate, quartzite, dolomite, and sometimes with basic extrusives.
They consisted originally of chert, containing beds of iron carbonate
or of dark-green ferrous silicate granules, called greenalite. As a
result of surface oxidation of the iron carbonate and greenalite, the
great bulk of the formation within the zone of observation now con-
sists of chert minutely interbedded with limonite or hematite, giv-
ing a banded rock variously called ferruginous chert, taconite, or
jasper. The average proportion of iron in these siliceous rocks is
between 25 and 37 per cent. Numerous slate layers form subordinate
proportions of the iron formation.
The iron ores constitute concentrations of ore in the exposed parts
of the iron formation, produced mainly by the leaching out of the
associated silica, thus leaving the iron in larger percentage, but also
partly by solution, transportation, and redeposition of the iron
when it was still in its soluble ferrous condition. The agents of
alteration are surface waters carrying oxygen and carbon dioxide.
The accessibility to the iron formation of these agents therefore
determines the location, shape, and size of the ore deposits. The most
favorable condition of accessibility is given by wide area of exposure
of the iron formation, which is in turn a function of the dip. The
flat-lying formation in the Mesabi Eange exposes a greater surface
to concentrating agents than the steeply dipping formation of similar
thickness and character in the Gogebic range, with the result that
the proportion altered to ore is much greater in the Mesabi district.
A comparison of the actual areas of the different iron formations
with their total shipments to date, and with their probable reserves,
shows a very close relation between area and amount of ore devel-
oped. Also determining accessibility of the concentrating agents to
the iron formation are numerous structural conditions, such as joints
or faults or impervious pitching basements, favorable to rapid cir-
culation of water. Finally, the texture of the iron formation itself,
whether dense or porous, may determine the activity of the circula-
tion of the waters.
It is therefore apparent that the size, shape, depth, and structural
relations of the Lake Superior ores are in widest variety. In the
3552 UNITED STATES STEEL CORPORATION.
flat-lying formations of the Mesabi Kange the ore bodies have wide
lateral extent as compared with depth, extremely irregular outlines
partly controlled by jointing, abut irregularly on bottom and sides
against unaltered portions of the iron formation, and when the glacial
overburden is removed, are accessible to surface operations with steam
shovels. In steeply dipping beds they have greater vertical as com-
pared with horizontal dimensions, usually abut not only against
unaltered parts of the iron formation, but against well-defined im-
pervious walls consisting of slate, quartzite, dolomite, or bosses or
dikes of greenstone, and in such beds underground mining is neces-
sary. The maximum depth to which mining has extended is a little
over 2,000 feet ; the maximum horizontal extent thus far worked in
a single mine is less than a mile, but deposits are known to connect
for nearly 10 miles. An adequate summary of the variety of struc-
tural features of the several districts can not be made within the
limits of this paper.
CHAEACTEE OP THE OSES.
The hematites and limonites making up the great bulk of the Lake
Superior ores range in texture from soft and powdery to hard and
crystalline. Both kinds usually have large pore space, due to the
removal of silica by leaching. Locally, however, where the ores have
been buried deeply in the zone of rock flowage, they have become
dense, schistose, specular hematites and magnetites lacking pore
space. Where the iron formation has been intruded by large masses
of igneous rocks the ores are magnetic. The ores range in grade
from above 60 per cent in iron down to 25 per cent in the lean parts
of the iron formation. The average shipment for 1906 for the entire
region was 59.8 per cent in iron. The difference between the iron ore
and the iron formation is simply in the proportion of silica present.
The ores mined in the Lake Superior region to date have generally
run above 50 per cent in iron. The lowest grade shipped has
been about 40 per cent, in the case of local ores in demand for mix-
tures and favored by cheap mining and transportation. In mining
much material running 40 per cent or even less is taken out and
mixed with higher-grade ores to give a medium grade. Such low-
grade material therefore does not figure obviously in the production.
The percentage of iron in the ore mined from the region has fallen
slowly but steadily in recent years, but the major part of the ship-
ment is likely to remain above 50 per cent for some years to come.
In the present estimate of available ores about 60 per cent of metallic
iron has been taken as the minimum. It is fully appreciated that
ores below this grade are even now locally available and will soon be
used in larger quantities, but such ores as a whole must be considered
still as belonging to the future supply. The ore supply of the Lake
Superior district available under present conditions is therefore
taken to include all ore above 55 per cent iron, estimated at 2,500,-
000,000 tons, and 26 per cent of all ore containing between 45 and 55
per cent iron, giving a total of 3,500,000,000 tons exclusive of the
Clinton ores.
ESTIMATES OF LOW-GKADE OEES.
Difficulties beset estimates of the tonnage of low-grade ores avail-
able for the future. The lower limit of such grade must be chosen
UJNITJ!!!} STATES STEEL COEPOBATIOIT.
3553
somewhat arbitrarily, and when it is chosen there is lack of sufficient
analyses of the iron formation as a whole to separate the tonnage
above the given grade. The mixing of high-grade and low-grade
ores also complicates the situation. Extensive drilling operations
have been directed mainly to determine the percentage of ore above
50 per cent and little attention has been given to the grading of ores
running below this percentage. The averages of all available analyses
from portions of the formation outside of the ore at present available,
made by the mining companies of the Lake Superior district, give
the following results:
Character of the ircm-hearing formations of the Lake Superior district.
DIAMOND-DRILL CORES.
State.
Holes.
Average
iron
content.
Analyses.
Total
footage.
Michigan
77
24
30
Fer cent.
36.62
38.00
36.40
3,897
1,094
1,517
22,202
6,400
4,814
Wisconsin
OTHER SOURCES.
Michigan:
Trenches
41.53
38.40
94
905
975
Levels -
<i7,600
« Approximate.
It seems entirely probable, in view of the fact that 40 per cent ore
is even now locally in demand, that the depletion of the higher-grade
reserves may in time require the use of 35 per cent ore. If so, the ton-
nage is enormous. Planimeter measurements of areas of the iron
formation, multiplied by the depths quite within the limits of actual
mining at the present time, give the following results :
Tonnage of iron formations.
District.
Area.
Depth.
Volume.
Quantity.
Michigan:
firystftl Falls , ..
So. miles.
7.80
28.50
5.60
11.60
1.00
127.00
15.60
.70
Feet.
1,250
1,250
1,250
1,250
1,000
400
1,250
1,2.';0
Cv. miles.
1.950
7.100
1.400
2,900
.200
10.000
3.900
.175
Tons.
19,500,000,000
Marquette. .. ...
71,000,000,000
14,000,000,000
Penokee . . . -
29,000,000,000
2,000,000,000
Minnesota:"
Mesabi
100,000,000,000
Vftrmilion..
39,000,000,000
Wisconsin:
"PlOrflTKW.
1,750,000,000
Ontario, Canada:
Animikie
197.80
27.625
276,250,000,000
10.80
6.64
30.00
100
1,250
1,250
.20
1.66
7.50
2,000,000,000
Michipiooten
16,600,000,000
75,000,000,000
47.44
9.36
93,600,000,000
Total
245.24
36.985
369,860,000,000
3554
UNITED STATES STEELi UUiUi-uiuirxCTiTT
It is not proved, however, that this enormous tonnage will average
as high in iron as these figures from the mining companies would
indicate. Indeed, many parts of the formations are known to run
lower than this. It is regarded safer, therefore, to use a smaller
figure for the tonnage of ore running 35 per cent and over. Just
what fraction of the total tonnage of the iron formations should be
taken is a matter of more or less arbitrary choice. It is here put at
72,000,000,000 tons, divided as shown in the following table :
Estimates of Lake Superior ores.
District.
Available.
Not available.
Michigan:
Marquette district
Gogebic district
Menominee, Crystal Ffdls, and other districts
Minnesota:
MesabI district
Vermilion district
Cayuna and other districts
Wisconsin
Total
Long torn.
no, 000, 000
95,000,000
80,000,000
3,100,000,000
60,000,000
15,000,000
40,000,000
Long tom.
15,900,000,000
3,900,000,000
7,360,000,000
39,000,000,000
1,005,000,000
310,000,000
4,625,000,000
3,500,000,000
72,000,000,000
(2) ADIRONDACK ORES.
[Based on reports of the New York State Survey.]
The area of crystalline rocks forming the Adirondack district oc-
cupies the greater part of the State of New York north of the Mo-
hawk Valley. The district contains a variety of iron ores differing
in their character and geologic surroundings. Those found in suf-
ficient abundance to be commercially important are nontitaniferous
magnetites, titaniferous magnetites, and red hematites. Some de-
posits of limonite also occur as bog ores, but they are not generally of
sufficient size to be considered an available source of ore at the present
time.
The rocks of the Adirondack district, with the exception of small
patches of Paleozoic sediments, are entirely pre-Cambrian, and are
either wholly crystalline or highly metamorphosed. They are pro-
visionally classed in three groups: (1) Sedimentary rocks, marble,
schist, and gneiss; (2) gneisses of imdetermined origin, but probably
in part, at least, sedimentary; and (3) igneous plutonic rocks, anor-
thosite, gabbro, syenite, and granite. The first group occupies a rela-
tively small part of the area, but with its various members are asso-
ciated all of the hematite deposits and many of the nontitaniferous
magnetites.
NONTITANrFEBOTJS MAGNETITES.
These are the most widespread of the Adirondack deposits, but the
more important ones occur in two groups on the eastern border of the
district m the Lake Champlain basin and in the western part of the
district in St. Lawrence County. In the first group are the well-
known Hammondville, Mineville, and Lyon Mountain deposits, and
in the second the Benson, Jayville, Fine, and Clinton deposits.
UNITED STATES STEEL CORPOEATION. 3555
The ores show great variation in their mineral and chemical com-
position, ranging from lean varieties, which consist of magnetite in-
termixed with the constituents of the wall rock, to those made up of
practically pure magnetite. The richest, obtained principally from
the Mineville group, average from 60 to 65 per cent iron, and consid-
erable quantities have been obtained which approached the theoretical
iron content of magnetite (72.4 per cent) . The deposits carrying less
than 60 per cent iron are generally considered too refractory for di-
rect smelting and their utilization depends upon concentration. Large
bodies of such ore occur in the Lyon Mountain, Arnold Hill, and St.
Lawrence County deposits. The lowest grade of ore now worked
carries about 35 per cent iron ore before concentration.
Both Bessemer and non-Bessemer ores occur, in some cases in ad-
joining deposits, though generally the ores from all deposits of a
group show a fair degree of uniformity in respect to phosphorus
content. The leaner ores are apt to be lowest in phosphorus, and
concentrates produced at Lyon Mountain contain less than 0.01 per
cent of that element with 65 per cent iron. The ores also carry a
variable proportion of sulphur due to the admixture of pyrite and
more rarely pyrrhotite.
The deposits occur in a variety of forms such as are common to the
magnetites found in gneisses and schists elsewhere. In general they
have a lenticular bedded form and are parallel to the foliation of the
inclosing rocks. They partake of the same structural folds and
faults as these rocks, and must therefore have been deposited before
the regional compression occurred to which these structural features
are due. While there has been much diversity of opinion regarding
the origin of these ores, the view generally held at present is that they
were introduced by processes connected with the intrusion of the
igneous rocks.
The Adirondack magnetites were mined as early as the latter
part of the eighteenth century and supplied many bloomeries and
forges and, later, small charcoal furnaces. These have now all dis-
appeared, and the ores are mostly shipped to the iron-making centers
for smelting. There are, however, two coke furnaces in the region
that are supplied by local mines. The total production up to the pres-
ent time has been somewhat over 36,000,000 tons. Both open-cut and
underground mining methods are employed, but chiefly the latter
because of the high inclination of the ore bodies. A depth of 1,500
feet has been reached in the workings at Lyon Mountain, and about
2,000 feet at Barton Hill. Practically all of the ore is concentrated
by the magnetic process, which yields concentrates containing from
60 to 65 per cent iron and at the same time effects a partial elimina-
tion of the phosphorus and sulphur. In fact, the treatment of the
richer ores is designed primarily to reduce the phosphorus, and the
concentration is a subordinate object.
While a few of these deposits have been drilled with sufficient
thoroughness to permit a fairly definite estimate of their contents,
this is not generally the case, and in most cases even the extent of
the outcrop is not accurately laiown. Lines of magnetic attraction
indicate the presence of ore bodies concerning which little else is
known, and finally large areas in the Adirondack Mountains, heavily
forested and drift covered, have not been examined in sufficient
detail to determine whether or not they contain iron-ore deposits.
3556 TJNITED STATES STETEEruUErTTEraXTTTiT;
For these reasons it is impossible accurately to determine the ore
reserves. It is estimated that the known deposits of high-grade ore
will yield 35,000,000 tons, and that the leaner deposits, carrying over
36 per cent iron, will yield 75,000,000 tons of concentrates. The esti-
mate of ore which is not now available because of great depth, or low
grade, but which may be used eventually, is even more uncertain, but
may be placed conservatively at 25,000,000 tons.
TlTANIFEBOtrS MAGNETITES.
Under this class are included the ores which carry titanium as an
essential ingredient. In general it amounts to at least 8 per cent of
titanic acid (TiOj), while the average is perhaps 15 per cent. These
deposits occur within the margins of the gabbro-anorthosite area,
chiefly in Essex and Franklin counties. In their relations to the
inclosing rocks these deposits are sharply differentiated from the
nontitaniferous magnetites which occur in the sedimentary and
eruptive gneisses and schists. The titaniferous ores are believed to
be the product of magmatic segregation, and hence intimately con-
nected m origin with associated igneous rocks. The form of the
ore bodies has not been accurately determined except in the case of
a few of the smaller ones. The large bodies have nowhere been
uncovered or sufSciently explored to afford an idea of their precise
outlines. The richest ores contain little else than magnetite and
ilmenite, and yield fully 60 per cent iron. From such pure aggre-
gates there may be traced a continuous series of gradations by the
entering of gangue minerals in increasingly greater proportion to the
limiting wall rocks which hold only subordinate amounts of mag-
netite and ilmenite. The two minerals are often distinct in their
crystallization, and show no tendency toward mutual intergrowth.
The use of ores containing high percentages of titanium is gener-
ally regarded as impracticable under present furnace practice because
of the infusibility of the slags. They have, however, been smelted on
a small scale in the Adirondacks, as well as in England and Sweden,
and experiments have shown the feasibility of securing a fusible slag
by properly proportioning the fluxes. A more promising solution oi
the problem is found in a reduction of the amount of titanium enter-
ing the furnace, both by concentration and by employing these ores
as mixtures with nontitaniferous ores. Since the ilmenite is only
feebly magnetic, it has been found practicable, at least on an experi-
mental scale, to reduce the titanic oxide from 15 to 8 or 9 per cent by
moderately fine crushing and magnetic concentration.
These deposits have l)een explored only far enough to prove that
they contain a very large amount of ore which simply awaits the de-
velopment of methods for overcoming the metallurgical difficulties
due to the presence of the titanium. Assuming that these difficulties
will be overcome, it is estimated that the known deposits in the Lake
Sanford district alone contain at least 90,000,000 tons sufficiently
accessible and high in grade to be now available, and that they may
contain in addition 100,000,000 tons, which are not now but will be
eventually available as an ore supply.
BED HEMATITES.
Hematite deposits of workable dimensions occur on the north-
western side of the Adirondacks in Jefferson and St. Lawrence coun-
uisixjau SXAXEB STEEL. COEPOBATION.
3557
ties. They are associated with the folded pre-Cambrian sedimentary
(Grenville) series of schists, limestones, and gneisses, which attain
greater areal development in that section than elsewhere in the Adi-
rondack region. The ores are mainly soft, red hematites, with sub-
ordinate specular ore, and occupy zones of replacement along the con-
tact of crystalline limestone and schist, and at times in the schist itself,
with often a capping of Potsdam sandstone. A peculiar feature is
the presence of a greenish mineral — locally called serpentine, but of
chloritic nature — ^which seems to be an alteration product formed by
reaction of the iron-bearing solutions upon the feldspathic schists and
the occasional granitic intrusions of the walls. The source of the iron
may be traced with some certainty to bands of pyrite and magnetite,
which abound in the schists and which are subject to rapid weather-
ing and to solution by ground waters. The principal mines have been
opened along a narrow belt extending northeast from Antwerp nearly
to the village of Gouverneur, but there are a number of outlying de-
posits that have been worked in former days for the supply of local
furnaces. Mining was begun about 1835. Altogether the district has
furnished probably 2,500,000 tons of non-Bessemer ore ranging from
45 to 60 per cent iron. The largest mines are the Dickson and Old
Sterling near Antwerp and the Caledonia and Spragueville. Of
recent years the output has been shipped to New Jersey and Penn-
sylvania for reduction.
Aside from the actual mine workings the district is practically
unexplored, and it is impossible to draw any accurate conclusions as
to the quantity of ore that may exist. Judging from the ore bodies
developed in the mines recently operative, it seems safe, however, to
place the resources at present available at 2,000,000 tons, while an
equal quantity may be represented by other deposits that are not now
workable by reason of their inaccessibility or other unfavorable cir-
cumstances.
Estimates of Adirondaclc ores.
Available.
Not avail-
able.
Nontitanifeious magnetites:
High-grade ores
Concentrating ores (concentrates)
Titanllerous magnetites
Red hematites
Long tons.
35,000,000
75,000,000
90,000,000
2,000,000
Long tons.
25,000,000
100,000,000
2,000,000
(3)
CLINTON ORES.
CHARACTER OF THE ORE.
The Clinton iron ore, so named from its typical occurrence at
Clinton, N. Y., is an amorphous red hematite mixed with calcium car-
bonate, silica, aluminum silicate, and other minerals in minor quan-
tities. It includes the varieties known as fossil ore and oolitic ore.
It occurs in lenticular beds analogous to the strata of sandstone,
shale, and limestone, with which they are interbedded.
The fossil ore consists of aggregates of fossil organic remains in
which the original calcium carbonate has been replaced partly or
wholly by ferric oxide. The fossils, which consist of broken and
waterworn fragments, were evidently gathered into beds by the action
3558 UNITED STATES STEEL OORPOEATION.
of waves and currents, and subsequently cemented together by calcium
carbonate and ferric oxide. More or less clay material was also in-
cluded in the beds during their deposition, and this now forms thin
seams of shale.
The oolitic ore consists of aggregates of flat grains with rounded
edges about the size and shape of flaxseeds. These gTains generally
lie parallel to the bedding planes of the rock, and the mass is cemented
by ferric oxide and more or less calcium carbonate. The flattened
grains have a nucleus of quartz, generally very minute, about which
successive layers of iron oxide, and, in many instances, thin layers of
amorphous silica and aluminous material, have been deposited. One
of the two varieties of ore generally predominates in a bed, but in
certain localities both fossil and oolitic materials are mixed in nearly
equal proportions. The fossil ore, where unweathered, as compared
with the oolitic ore in the same condition, is apt to be the more cal-
careous, while the oolitic ore may carry higher proportions of silica
and alumina.
A characteristic of the Clinton ore is that where it has been weath-
ered or acted upon by surface waters the lime carbonate is dissolved
out, thereby increasing the content of iron oxide, silica, and other
constituents proportionately. Such altered ore is termed " soft ore,"
and it is usually porous and friable as compared with the unaltered
material, which is termed " hard ore." The alteration of the ore beds
takes place at the outcrop and extends to depths varying from a few
inches to 400 feet, depending on the attitude of the beds and on the
thickness and permeability of the overlying rocks. The quantity of
the soft ore is relatively small in comparison with the hard ore, and
owing to its higher content of iron and its greater accessibility, a
large part of the soft ore has already been mined.
In general the hard and semihard ores range in percentages of ma-
jor constituents as follows : Metallic iron, 30 to 45 per cent ; lime, 5 to
20 per cent ; silica, 2 to 25 per cent ; alumina, 2 to 5 per cent ; magne-
sia, 1 to 3 per cent; phosphorus, 0.25 to 1.5 per cent; sulphur, a trace
to 0.5 per cent; and water, 0.5 to 3 per cent. The ore is therefore
of non-Bessemer grade. Small quantities of manganese are found in
the Clinton ore in places, especially in the South. The content of
this mineral seldom exceeds 0.25 per cent. In the soft ore the lime
generally runs less than 1 per cent, so that the percentages of the
other constituents are proportionately higher.
GEOLOGIC RELATIONS AND DISTRIBUTION.
The Clinton formation, of which the Clinton ore beds are a part,
consists of lenticular, overlapping sedimentary beds, chiefly shale,
sandstone, and limestone. In some places shale predominates, in
others sandstone, and less commonly limestone. One or more iroji-
orebeds are generally present, although over considerable areas none
occur.
The formation has a wide distribution in the eastern half of the
United States. In the Mississippi Valley it is present in Wisconsin
and Missouri, in the latter State having been recognized in a drill hole
by the presence of a bed of iron ore over 8 feet thick at a depth of 2,000
feet. In eastern Wisconsin the formation is represented by a bed of
iron ore only, which varies in thickness from 1.5 to 25 feet. In Ohio,
i^x^xjLr.!^ ioj-arjio sxiSJilj COEPOEATION. 3559
Indiana, and northeastern Kentucky the formation occurs generally
with thicknesses of 35 to 50 feet, but containing ore only in the latter
State. In northern New York the Clinton rocks extend in a east-
west strip from Niagara Kiver to Otsego County. Here the thickness
ranges froni 32 to 295 feet. In all these States the beds are approxi-
mately horizontal or dip at very low angles. In the Appalachian
belt from northern Pennsylvania southwestward to central Alabama
the Clinton is a well-developed formation, and the beds are generally
inclined at angles of 10° to 90°. Its thickness decreases from 2,000
feet in Pennsylvania to about 850 feet in Virginia, 300 to 750 feet in
Tennessee, and 200 to 700 feet in Alabama and Georgia,
DISTRIBUTION.
While the total length of outcrop of all the areas of ore-bearing
Clinton formation would reach several thousand miles, only a rela-
tively small part of this outcrop contains ore workable under present
conditions. The workability of an ore bed depends on its thickness,
extent, composition, and attitude, and also upon its situation with
respect to transportation routes, fuel, and markets. The first set of
factors are of greatest importance, since few areas of good ore are so
inaccessible that they will not sooner or later be reached by railroad.
Local conditions also play an important part in determining the
workability of an ore bed. For instance, in districts where several
such beds occur in the formation, as in Alabama, only the thicker and
richer ores are now worked, while others that would be at once ex-
ploited if they were in Pennsylvania are for the present neglected.
Wisconsin. — In Wisconsin Clinton ore has been produced in Dodge
County since 1849. The ore occurs at Iron Ridge in an irregular
lens-shaped bed between the " Cincinnati shale " and the Niagaran
limestone. Its thickness varies from 1.5 to 25 feet. At other points,
within a radius of 10 miles, the same ore bed occurs and it is known
to thin out to the east. Toward the west the ore has been eroded,
so that the outcrop lies in a westward-facing scarp about 60 feet high,
capped by Niagaran limestone. Open-cut and underground mining
have been carried on here. The ore as originally mined ran low in
lime and contained about 45 per cent iron. It was partially hydrated
and represented the " soft ore " of the outcrop. In 1906 the produc-
tion of ore from Iron Ridge was nearly 90,000 tons, and in 1907 about
22,000 tons. Recent exploration work has proved that a considerable
reserve of hard ore remains in this district, amounting to about
40,000,000 tons.
Kentucky. — ^A bed of Clinton ore, averaging probably more than 2
feet in thickness, occurs in Bath County, Ky., underlying an area of
about 8 square miles. This ore lies nearly horizontal, but most of it
is below too heavy cover to admit of mining under present conditions.
It carries from 30 to 40 per cent iron and 13 to 16 per cent lime car-
bonate. At present the ore is mined by stripping where the cover is
not more than 8 to 10 feet thick. The deposit has produced ap-
proximately 190,000 tons, and it is estimated that there are remaining
25,000,000 tons, one-tenth of which may be available under present
conditions.
New York. — The belt of ore-bearing Clinton within New York
State extends from Rochester on the west nearly to Utica on the east,
a distance of about 130 miles. The width of outcrop of the formation
reaches a maximum of 5 miles. The beds dip toward the south, from
3560 UNITED STATES STEEL COEPOEATION.
45 to 80 feet to the mile. Conditions are extremely favorable for
underground mining and should permit work to a distance of 3 to
5 miles from the outcrop wherever the ore is of sufficient thickness.
The ore bed that is worked varies in thickness from 1.5 to 4 feet, with
an average of about 2.5 feet. It carries 35 to 45 per cent of iron, with
an average, where worked, of about 40 per cent. The phosphorus is
high, from 0.25 to more than 1 per cent, and the sulphur, while vari-
able, runs from traces up to 0.5 per cent. The ore has been worked
in Wayne, Cayuga, and Oneida counties.
An estimate made by the New York State Survey of the tonnage
contained in this district, mainly in these three counties, gives a
total of 600,000,000 tons. Ore beds less than 1.5 feet thick and at a
depth of more than 500 feet, as well as those carrying less than the
average content of iron, have been excluded from consideration.
Much of this ore, however, is not available under present conditions.
Pennsylvania. — The length of outcrop of the Clinton formation in
Pennsylvania is very great owing to its repetition in the many anti-
clinal folds within the central part of the State. In the counties of
Snyder, Mifflin, Juniata, Blair, Huntingdon, and Bedford, three or
four thin beds of red ore occur, ranging in thickness from a few
inches to more than 2 feet. The ore on the outcrop is usually soft and
rich enough to work by stripping, but the hard ore under cover is
in most places too thin to be worked at present. In a few places,
however, where the beds are from 1 to 2 feet thick, underground
drifts and slopes have been driven for short distances in the hard ore.
The soft ore carries 40 to 50 per cent of iron and from a trace to 5 or
G per cent of lime. The hard ore carries 20 to 35 per cent of iron,
and in places as much as 25 per cent of lime.
Less than 20,000 tons a year of Clinton ore are now being produced
in Pennsylvania, and it is probable that the reserves of this ore at
present available in the State are not much in excess of 5,000,000 tons.
Virginia and north Tennessee. — The ore beds in the Clinton in
Virginia are generally too thin to be considered important reserves
after the soft ore shall have been mined out. In the west-central part
of the State beds at Lowmoor range in thickness from 16 to 21 inches,
and at Iron Gate from 8 to 12 inches. The soft ore carries 46 to 57
per cent of iron. Nearly 90,000 tons were shipped in 1907 from mines
in this district, and at this rate of production most of the easily ac-
cessible soft ore will probably be exhausted within ten or twelve
years.
The Clinton formation, outcropping along the foot of Cumber-
land Mountain, is ore-bearing from Cumberland Gap, Va., to La
FoUette, Tenn. Near Cumberland Gap there are three ore beds rang-
ing in thickness from 6 inches to 2.5 feet. Only the upper bed, the
thickness of which ranges from 15 to 20 inches, is workable. South-
westward toward La FoUette the ore increases in thickness to 3.5
feet. Here practically all the soft ore has been mined out, so that
only a hard ore, carrying 26 to 32 per cent of iron, remains. It is
estimated that about 16,000,000 tons of such ore are still available
in the Cumberland Gap-La FoUette district.
It is possible that future exploration of the extensive areas of
Clinton formation within Virginia and West Virginia may reveal
additional ore reserves.
UNITED STATES STEEL COBPOKATION. 3561
Rockwood-Ohattanooga-Gadsden district. — This district embraces
an area about 30 by 125 miles in the Appalachian valley region of east
Tennessee, northwest Georgia, and northeast Alabama. Steeply dip-
ping Clinton strata outcrop in narrow strips on both sides of Walden
Ridge and Lookout Mountain and in the Whiteoak Ridge and other
synclines of the Tennessee Valley. Ore is mined at North Chatta-
nooga, Rockwood, Cardiff, Euchee, Welker, and Ooltewah, Tenn.,
and has been mined extensively at Inman. The important mining
localities in Georgia are at Rising Fawn and Estelle, and in Alabama
at Battelle, Portersville, Crudup, Attalla, and Gadsden.
The workable ore beds range from 2 to 5 feet in thickness and
carry from 30 to 40 per cent of iron, 10 to 25 per cent of lime, and
0.5 to 0.7 per cent phosphorus. The use of much of the ore that is
low in iron and high in lime depends upon the continuance of sup-
plies of brown ore. The latter is mixed in the blast furnace with red
ore that contains more than sufficient lime to be self -fluxing.
Estimates based upon fairly complete examinations place the avail-
able Clinton ore of the Rockwood-Chattanooga-Gadsden district at
86,570,000 tons, and the ore that will ultimately become available at
440,000,000 tons.
BirmingJiam district. — ^The Birmingham district includes the
Clinton ore-bearing areas of Alabama from Springville southwest
beyond Woodstock. As in Tennessee and Georgia, the Clinton for-
mation in Alabama outcrops in narrow strips on the flanks of syn-
clinal mountains. The dips range from 10° or 15° to vertical. The
most important outcrop is along the crest of Red Mountain for about
25 miles near Birmingham. Other areas of minor importance occur
along West Red Mountain near Birmingham. The thickness of the
more important ore beds ranges from 2.5 to 12 feet. The ore carries
from 30 to 40 per cent of iron, 10 to 25 per cent of lime," 0.3 to 0.6 per
cent phosphorus, and from a trace to 0.1 per cent sulphur.
Estimates of tonnage of available ore for the Birmingham-Clinton
ore field indicate a supply of probably 358,470,000 tons, and of ore
not at present available of about 438,000,000 tons.
BUMMAET AND ESTIMATES.
The Clinton formation has a wide distribution in the central and
eastern portion of the United States, but contains commercially im-
portant ore beds in only a part of its area. The most important de-
posits are in the Birmingham, Chattanooga, and New York State
districts, while less extensive deposits occur in Virginia, Wisconsin,
Pennsylvania, and Kentucky.
It is evident from the above description that the quantity of ore
contained in any area of the Clinton formation may be calculated
with a fair degree of accuracy, provided sufficient data are available
as to its dip and as to variations in thickness and quality of the ore
beds. An assumption must be made as to depth-limiting workability
under a variety of structural conditions, and since this is a matter
of opinion it will vary somewhat widely and introduce corresponding
differences in the results. Conditions of blast-furnace practice locally
may define the quality of a workable ore. In places where brown
ores are available for mixing with Clinton ores, an ore of the latter
class can be used as a flux, although it runs so low in iron and so high
3562
UNITED STATES STEEL. COHPOEATION.
in lime that alone it would not be acceptable. The estimates of avail-
able ores made by various experts do not, however, differ materially.
In case of the total ore which is not now available, but which may be
mined eventually, the variance in estimates is much greater, since
more unknown factors enter into the problem.
The estimates given below are based upon detailed examinations
of the more important districts by the United States Geological Sur-
vey for the Birmingham and Chattanooga districts, and by the State
Survey for the New York district, with a study of all obtainable drill
records.
Estimates of Clinton ores.
Available.
Not avail-
able.
Birmingham
Chattanooga
New York
Virginla^North Tennessee
Wisconsin
Pennsylvania
Kentucky-West Virginia.
Long torn.
358,470,000
86,570,000
30,000,000
16,000,000
10,000,000
6,000,000
2,600,000
Long toiu.
438,000,000
440,000,000
570,000,000
50,000,000
30,000,000
60,000,000
42,500,000
(4) APPALACHIAN METAMORPHIC ORES.
This group includes the deposits of magnetite and specular hema-
tite associated with the crystalline and metamorphic rocks of the
Piedmont and Appalachian mountain belts, which extend from south-
em New York to central Alabama. The ore deposits are not uniformly
distributed throughout this area, but are confined to certain portions
where geologic conditions have been favorable for their accumu-
lation. The most important districts are (1) the highlands of
southern New York and northern New Jersey; (2) the James River
district, Virginia; (3) the Cranberry district, North Carolina; (4) the
Piedmont district. North Carolina; (5) the Yorkville district. South
Carolina; (6) the Talladega gray ore district, Alabama. The last-
named district is included in this group for convenience, although it
differs materially in its geologic relations from the others.
The ore deposits of this group have the form of lenticular beds or
elongated pods, which are interlaminated with the gneisses, schists,
or crystalline limestones. The individual deposits vary in thickness
from a fraction of an inch up to 50 or even 80 feet, but the majority
of the workable deposits are from 4 to 15 feet thick and are apt to
show rapid variations by pinching and swelling on both the strike and
the dip. They vary in composition from practically pure iron ore
to a material containing a large proportion of gangiie minerals. In
general, the larger deposits contain the smaller proportion of iron
and can be worked only by the employment of some method of con-
centration.
The deposits rarely occur singly, but are more often disposed in
rather narrow belts separated by wider belts of barren gneiss and
schist. Since the ores were undoubtedly derived from a deep-seated
source, there is no reason to anticipate a failure in depth, although
pinches and swells are to be expected in the course of deep mining,
and the cost of mining will necessarily increase with depth.
UNITED STATES STEEL CORPORATION. 3563
The gray hematites of the Talladega district and certain hematite
deposits of Virginia and Georgia are here included for convenience,
though they occur under entirely diflferent geologic conditions from
those above described. These hematites have the appearance of regu-
larly bedded deposits, associated with sedimentary rocks which have
suflFered only slight metamorphism. Whether or not they were de-
posited at the same time as the inclosing sediments has not been defi-
nitely determined. They possess much greater uniformity, both on
the dip and along the strike, than the magnetites in the crystalline
rocks, and for practical purposes may be regarded as original bedded
deposits.
In view of the irregularities in thickness of the magnetite beds,
which can not be determined in advance of thorough prospecting, it
is impossible to make any accurate calculation of the amount of ore
which they contain even when their area at the surface is known, and
this is rarely the case. The following estimates, therefore, are only
approximate, particularly the amount assigned to the nonavailable
class:
Estimates of Appalachian, metamorpliic ores.
Ores.
Available.
Not avail-
able.
Magnetites, Including some tltaniferous magnetites and some hematite
Specular hematites, including some limonites
Long tons.
47,500,000
8,000,000
Long tons.
74,600,000
53,000,000
(5) APPALACHIAN BROWN ORES.
GEOLOGIC BELATIONS.
This group embraces those deposits of brown ores associated with
the Appalachian belt of closely folded sedimentary rocks which
extends continuously from northern Vermont southwestward to cen-
tral Alabama. It is bounded on the east by the older crystalline and
metamorphic rocks of the Appalachian Mountains, and on the west
by the younger " Coal Measures." It is underlain by limestones, dolo-
mites, shales, sandstones, and quartzites, ranging in age from Cam-
brian to Carboniferous. The beds, originally deposited in approxi-
mately horizontal layers, have been folded and faulted so that they
now occupy all possible attitudes. This has given rise to conditions
favorable to the rapid weathering of the rocks. The steeply dipping
sandstones and quartzites form sharp ridges, while the more easily
eroded limestones, dolomites, and shales form the intervening valleys,
their surfaces being generally covered with a deep mantle of residual
materials. These rocks, particularly the shales and some of the lime-
stones, contain small quantities of iron minerals, sulphides, carbon-
ates, and silicates, and in the process of weathering and erosion, by
which many thousand feet of strata have been removed, the iron
originally contained in these widely disseminated minerals has been
concentrated, where conditions were favorable, as the hydrated oxide
forming the deposits of brown ore. These deposits, while presenting
great diversity in form, fall into three classes, known as mountain
ores, valley or limestone ores, and Oriskany ores.
MOTTNTAIN GEES.
These deposits are so called because they always occur upon the
flanks or at the base of a sandstone, chert, or quartzite ridge, and
3564 UNITED STATES STEEl, COHPOEATION.
throughout Virginia, Tennessee, Georgia, and Alabama they are
most extensively developed along the extreme eastern margin of the
valley belt where the Cambrian quartzite forms a high ridge flanking
the crystalline rocks. The quartzite beds dip steeply beneath the
overlying shales and limestones, and iron derived from the latter
during the process of weathering has been concentrated downward
upon this impermeable foot wall. Similar conditions favorable for
ore concentration occur elsewhere in the Appalachian belt where the
Cambrian quartzite in isolated ridges dips beneath the overlying
shales, as at Anniston, Ala., and also at a few points where the
lower Carboniferous chert has formed an impermeable foot wall, as
at Sugar Valley, Ga. The deposits present great diversity in form,
varying from fissure veins and replacement zones in the sandstone
and shale, through blanket deposits resting on the quartzite, to irreg-
ular pockets scattered through the residual clay. The last are the
most abundant and characteristic. Their size can rarely -be deter-
mined in advance of development, even by systematic prospecting,
and estimates of their available tonnage vary between wide limits.
VAIiET OK LIMESTONE ORES.
These are associated with the great limestone and dolomite forma-
tions which underlie much of the Appalachian belt. They are also
derived from the iron minerals originally disseminated through the
rocks and have been concentrated during the process of weathering
and erosion. Their location depends on the original abundance of
these minerals in the rocks and on favorable conditions for con-
centration afforded during erosion, in some cases probably by the
fracturing of the beds and the consequent free underground circula-
tion of water, and in others by the location of an easily soluble bed
of limestone toward which drainage from surrounding areas brought
the iron and deposited it as bog ore. They are always embedded in
the residual mantle composed of the insoluble portions of the under-
lying rocks. The deposits vary in form, but generally consist of
concretionary masses ranging in size from those containing several
tons down to pellets the size of a pea, disseminated through the re-
sidual clay.
OBISKANT ORES.
These deposits are more regular in their occurrence, being limited
to a definite horizon in the Helderberg limestone immediately be-
neath the Oriskany sandstone. They are confined to a comparatively
small portion of the valley belt, chiefly in southwestern Virginia with
a few deposits in Pennsylvania and West Virginia. The iron was
originally disseminated in the overlying shales, and wherever these
shales occurred in sufficient thickness and the limestone bed occupied
a favorable attitude its lime carbonate has been replaced by the iron
oxide for a greater or less distance below the surface. The deposits
frequently extend continuously for several miles along the outcrop,
being made up of a series of lenses which may reach 75 feet in their
thickest portions and thin down to a foot or less where adjacent lenses
come together. The greatest depth to which the ore has been found
is about 600 feet. Where the replacement has been complete and
extensive, therefore, it has the form of a bedded deposit and the ore
UNITED STATES STEEL COEPOEATION. 3565
content can be estimated with some certainty. The deposits consist
either of fairly solid ore or of irregular masses and seams of ore em-
bedded in clay.
DEVELOPMENT AND ESTIMATES.
The Oriskany deposits are mined both by stripping on the outcrop
and by regular underground mining. The mountain and valley ores
are nearly always mined in open pits, in the larger operations by
steani shovel, and in a few cases by the hydraulic method. Where
hand mining is done, a part of the ore is sent direct to the furnace
without other treatment than hand picking, but where the steam
shovel is used everything is passed through the washer. In most
cases sorting tables and jigs are employed in addition to the washer.
By these means the associated materials, consisting of clay, chert,
and other rock fragments, are removed from the ore. The average
iron content of the ore as shipped is about 45 per cent, and the phos-
phorus is generally above the Bessemer limit. The deposits of this
group, being widely disseminated and easily mined in open pits, fur-
nished a large part of the ores used by the small charcoal furnaces
in the early development of the iron industry in the United States.
With increase in capacity of furnaces a more reliable ore supply has
been sought, and many districts which were formerly heavy pro-
ducers have been temporarily abandoned. The ore is still in demand,
however, chiefly for mixture with the calcareous Clinton ores, and its
production will doubtless increase in the future beyond any point
previously reached.
From the above description of these brown-ore deposits it will be
readily understood that extreme difficulty must attend any attempt to
estimate their total tonnage. It is unsafe to base an estimate on the
number of known occurrences of the ore multiplied by an average
content derived from the known yield of certain deposits which have
been worked out, for the best deposits are the ones most apt to be
exploited first. The estimates given below are based in part on
systematic examination and measurement of all known deposits in
certain districts and in part on general considerations of distribution
and geologic occurrence. The amounts given in the second column
of the table, representing ore not now available, are confessedly little
better than guesses and future exploration may show them to be
much too low. It should be stated further that estimates made by
competent experts differ from the figures here given by a factor vary-
ing from 0.7 to 3.
Estimates of Appalachian Tyrovm ores.
New England and New York
Pennsylvania, Maryland, and New Jersey
Virginia, West Virginia, and East Tennessee .
Alabama, Qeoigla, and North Carolina
Available. Not available.
Longtam.
LOTig tons.
1,000,000 1,500,000
10,000,000 12,000,000
35,150,000 136,000,000
19,250,000 I 32,000,000
(6) APPALACHIAN CARBONATE ORES.
This group of deposits includes the beds of carbonate ores and
their oxidized outcrops which occur in the Carboniferous rocks within
31572— No. 52—12 8
3566 UNITED STATES STl^Ki^ <Junjt-^jjttA-Livyx^.
a broad belt stretching from western Pennsylvania through Ohio
into northeastern Kentucky, and probably extending also into Ten-
nessee and Alabama. The rocks occupying this belt are chiefly sand-
stones and shales, with occasional thin beds of limestone. The beds
are nearly horizontal, and the topography is such that the outcrop
of any stratum is extremely sinuous and may have a length many
times the shortest distance between two points. This combination
of structure and topography has an important bearing on the possible
utilization of the iron ore.
The group embraces several varieties of ore locally distinguished
as limestone ore, block ore, kidney ore, and black-band ore, each of
which is accompanied by a corresponding variety of oxidation prod-
uct. All of the varieties are non-Bessemer ores. The limestone
ores are associated with thin beds of limestone, the most widely dis-
tributed being the Vanport and Maxville. The ore beds lie imme-
diately above the limestones, which thev sometimes entirely replace.
They are usually only a few inches thick, but occasionally expand to
several feet. For varying distances from the outcrop the original
iron carbonate has been oxidized to a dense brown ore, with loss of
carbonic acid and increase in proportion of iron. The unaltered
carbonate contains 30 to 35 per cent iron, and the alteration product
from 43 to 47 per cent.
The block ores are fairly regular bands of iron carbonate, inter-
stratified with shale or fine sandstone. They are more persistent
and uniform in thickness than the other varieties. In Kentucky
three persistent beds are recognized having a total outcrop of over
450 miles. The quality of the ore varies inversely with the thickness
of the beds, the thinnest beds carrying the best ore. The unaltered
carbonate carries from 29 to 34 per cent iron, and the brown ore on
the outcrop from 33 to 43 per cent.
The kidney ores, as their name implies, are concretionary in form
and occur in certain beds of clay snale, rarely forming continuous
layers. They grade into the black-band ores, which are usually more
or less closely associated with coal beds and contain carbonaceous
matter which ^ves them a black color. These concretionary forms
generally contain the purest iron carbonate and on oxidation at their
outcrop yield a correspondingly pure limonite, or brown ore.
In the early history of iron making in the United States this ore
belt in Pennsylvania, Ohio, and Kentucky contained a large number
of small charcoal furnaces and the aggregate amount of ore produced
was very considerable. With the disappearance of the forests the
iron industry in this region declined, and the use of these ores has
practically ceased. The production was confined largely to the
oxidized surface ores, which not only were more easily accessible but
gave the best results in the primitive furnaces. While the deposits
of this group contain a large aggregate tonnage, practically all
of it must be classed as not at present available. The principal
reason that the ore can not now be worked at a profit is the fact
that the nature of the deposits does not permit operations on a
large scale. At only a few points are the beds sufficiently thick and
persistent for underground mining, and stripping is therefore the
method used. The distance which stripping can be carried into the
hillside depends on the slope and the thickness of the bed. An aver-
age width of the belt from which the ore can be mined has been
UKITED STATES STEEL OOKPOKATION. 3567
assumed as 100 feet, and the average thickness of the ore bed from 10
to 12 inches. The aggregate length of outcrop of the several ore
beds has been taken as follows: For Pennsylvania, 866 miles;
Ohio, 2,056 miles; and Kentucky, 1,260 miles. With these assump-
tions the total tonnage of carbonate and associated limonite ores
which may ultimately be produced in these three States, and in
Tennessee and Alabama, is as follows:
Estimates of Appalachian oarbonate ores.
Available.
Not available.
Pennsylvania
Ohio
Kentucky
Tennessee-Alabama .
Long tons.
Lang tons.
46,000,00«
200,000,000
60,000,000
2,000,00*
(7) WEST TENNESSEE BROWN ORES.
This group embraces the ore deposits within a broad belt extending
from the northern border of Alabama and Mississippi across western
Tennessee and Kentucky. This region is a plateau of moderate eleva-
tion which has been dissected by the Tennessee River and its tribu-
taries. The rocks underlying the ore-bearing territory are lower
Carboniferous cherty limestones. The ore deposits closely resemble
the limestone ores of the Appalachian Valley. They vary in size from
scattered concretions embedded in surface cherty clay to bodies hav-
ing a depth of 120 feet or more and containing upward of half a
million tons. The larger deposits are confined to slight depressions
in the plateau surface, in which deposits of waterworn bowlders
suggest the former presence of streams. The ore was doubtless de-
rived from the accumulation during the process of weathering and
erosion of iron contained in minerals disseminated through the
higher formations. These ores have been mined for many years,
supplying a number of local charcoal furnaces and being shipped for
mixture with the calcareous Clinton ores of the Chattanooga and
Birmingham districts.
In the absence of detailed examination of this ore belt, estimates of
ore tonnage contained in these deposits must rest upon a very small
foundation of ascertained fact. A few of the deposits have been
studied, as those at Russellville, Mannie, and Goodrich, and the esti-
mates for the entire district are based upon these disconnected obser-
vations. These estimates place the available ore at 10,000,000 tons,
and the ore not now available, chiefly because of the excessive cost
of transportation and of working scattered deposits, at 15,000,000
tons.
(8) EAST TEXAS BROWN ORES.
This group of deposits occurs in the northeastern portion of Texas
and the adjacent portions of Louisiana and Arkansas. They differ
materially in their geologic relations and in the problems of utiliza^
tion from the brown ores previously described. The region is under-
lain by Tertiary formations, chiefly unconsolidated sands, clays, and
greensands. The ore forms a fairly uniform layer, rarely averaging
3568 UNITED STATES STEEL. COEPOEATION.
over 2 feet in thickness, and covering large areas. It is at places ex-
posed at the surface and elsewhere covered by soil and sand to a
depth of 6 feet or more. The ore averages about 46 per cent of iron,
and is above the Bessemer limit in phosphorus. It is generally high
in both silica and alumina. The deposits are probably derived from
the oxidation in place of beds and nodules of iron carbonate, although
it may be in part due to the concentration of iron derived from the
greensand and other iron minerals disseminated through adjacent
formations. While these deposits contain in the aggregate a large
amount of ore of fairly good grade, its utilization presents some-
what serious difficulties. Owing to the thinness of the deposits the
ore can not be excavated with steam shovel or other mechanical
devices. The scarcity of water in the region will prevent hydrau-
li eking and also economical washing of the ore, so that only the lump
ore can be utilized.
These deposits have been mined at a number of points and have
supplied a local furnace for some years. The same region is under-
lain by beds of lignite, one of which at a depth of about 50 feet has
a thickness of over 4 feet. Should it prove practicable to use this
lignite In blast-furnace practice, directly or as a gas producer, its oc-
currence in the immediate vicinity of the ores would prove highly
advantageous in their utilization.
In the absence of detailed surveys it is not possible to closely esti-
mate the area of the workable deposits. The total area known to be
underlain by the ore-bearing formation is about 500 square miles, and
of this probably 50 square miles contain a bed averaging 2 feet in
thickness, which is taken as the limit of profitable working at the
present time. Upon this basis the district is estimated to contain
260,000,000 tons of available ore, and it is probable that it contains
twice this amount of ore that is not now available but will be utilized
eventually.
(9) OZARK OKES.
[Based on reports of the Missouri State Survey.]
GEOLOGIC EELATIONa.
The Ozark district embraces the southern half of Missouri and a
narrow strip along the northern border of Arkansas. It consists of
a broad, unsymmetrical, domelike uplift, by which the older rocks
are brought to the surface near the center of the district and, dipping
outward in all directions, pass under successively younger formations
toward its circumference. The oldest rocks in the district are igneous,
porphyry and granite, on the irregularly eroded surface of which
the Cambrian formations were deposited. The greater part of the
district is occupied by cherty, magnesian limestone, with subordinate
sandstones and shales.
The district contains four classes of iron ores in deposits of suf-
ficient size to be of commercial importance. These are (1) coarse
specular hematite, occurring in veins in porphyry and in associated
conglomerate beds; (2) fine specular hematite, occurring in pockets
at the contact between Cambrian sandstones and limestones; (3)
brown ore, limonite, occurring in pockets in the residual clay and
chert derived from the weathering of limestones; and (4) red hema-
tite, occurring as bedded deposits with Carboniferous shales and sand-
stones. In addition the "Coal Measures " contain occasional thin
UNITED STATES STEEL CORPOKATION. 3569
beds of iron carbonate, but these are not known in deposits of commer-
cial size. Each of these classes of ore being associated with certain
geologic formations, their distribution is dependent on the structure
of the district. The porphyry ores are confined to a small district in
Iron County, practically to the two localities. Iron Mountain and
Pilot Knob. The fine hematites are grouped within an area about
60 miles in diameter, chiefly in Phelps and Crawford counties, where
the Koubidoux sandstone occupies the surface. The limonite de-
posits form two irregular groups, the first occupying the basin of
the Osage River and the second extending along the southeastern
margin of the district. The deposits of the red hematite are less
numerous than the other kinds, and occur chiefly along the northern
margin of the district.
SPECTTLAB POBPHTEY HEMATITE.
The interest in these deposits is chiefly historic, since they are now
practically exhausted and thorough testing in the most favorable
localities has entirely failed to reveal additional deposits. These
were the first iron ores worked west of the Mississippi River and
supplied several local furnaces, the first of which was built about
1815. They continued to produce up to 1893 and have had a total
production of 4,500,000 tons. The history of the development and
exhaustion of these deposits is instructive as illustrating the fallacy
of the popular belief that many ore bodies are inexhaustible and
showing that they are very definitely limited in the amount of ore
which they will yield.
SPECULAB SANDSTONE HEMATITE.
These deposits consist of irregularly circular pockets from 300 to
500 feet in diameter, located in the sandstone and extending down-
ward into the underlying limestone. The ore occurs both as bowlders
mixed with fragments of sandstone, chert, and residual clay and
as a solid, indistinctly bedded mass. The unaltered ore is a dense,
fine-grained blue or gray hematite, which near the surface has been
changed largely to soft red hematite or to limonite. The better
grades contain 55 to 67 per cent of iron and are generally low in
phosphorus. In addition there are large amounts of siliceous ore
which are not available under present conditions. The yield of in-
dividual deposits may be in excess of half a million tons, and unless
erosion has cut into deposits of this size they may afford little or no
indication of their presence at the surface. In the absence of thor-
ough testing, surface indications are therefore unreliable as a basis
for estimates of the ore content of these deposits. A large amount of
uncertainty must be present in any estimate of total tonnage, and the
figures given are regarded only as roughly approximate. These
deposits at present form the chief source of iron-ore production in
the Ozark district.
BBOWN OBES.
Deposits of this class occur in very large numbers as irregular
pockets in the residual material overlying various limestone forma-
tions. They are due to the concentration of iron contained in min-
3570 UNITED STATES STEEL COKPOKATION.
erals originally disseminated through the rocks which have been
removed and were concentrated during the process of weathering and
erosion. They are in part also derived from the solution and re-
deposition at lower levels of other iron ores, as the specular and red
hematites. Over 500 localities are listed at which these deposits
occur, and while they vary widely in the amount of ore contained, the
aggregate tonnage must be very considerable. Owing to the small
size of many of these deposits, their distances from transportation
places them in the class of ores not at present available. Also, in a
considerable proportion of the deposits, the ratio of ore to clay is too
low for profitable working at present.
BED HEMATITE.
These ores occur as regularly bedded deposits in certain portions
of the lower Carboniferous formations along the northern border of
the Ozark district. They are variable in thickness and horizontal
extent. The deposits are practically undeveloped, and owing to the
low grade of the ore and the thinness and variability of the beds, they
can not at present compete with other ores of higher grade and more
cheaply mined.
BUMMAET.
The estimates of tonnage contained in the various classes of ore
deposits in the Ozark district are summarized in the following table:
Estimates of Ozark ores.
Arailable.
Not available.
Sandstone hematite
Lon} ttmt.
16,000,000
30,000,000
Long tmi.
6,000,000
«, 000, 000
6,000,000
Brown ore
(10) ROCKY MOUNTAIN METAMORPHIC ORES.
This group embraces the deposits of magnetite and specular hema-
tite associated with crystalline schists and gneisses at various locali-
ties in the Rocky Mountain region. They are similar in most par-
ticulars to the deposits of the same ores in the crystalline metamor-
phic belt of the Eastern States. They consist of lenticular beds con-
forming in dip and strike to the foliation of the inclosing rocks and
varying greatly in thickness within short distances, both in depth
and along the outcrop. Associated with these beds, and evidently
derived from them, are occasionally found secondary fragmental de-
posits, which are sometimes overlain by later sedimentary or igneous
formations.
The best-known deposits of this group occur in the Hartville dis-
trict, Wyoming, and in the Llano district, Texas. They also occur
at various points in Colorado, Nevada, New Mexico, and Arizona,
and in general may be expected wherever there are considerable areas
of crystalline gneisses and schists. They have been extensively
worked in the Hartville district, supplying a part of the ore for the
XJNITliD STATES STEEL COKPOEATION. 3571
furnaces at Pueblo, Colo., and being used also to some extent for
fluxing silver ores. It is probable that a much larger proportion of
the deposits of this group are as yet undiscovered than of any other
group of iron-ore deposits. In view of the extremely meager infor-
mation, estimates of their contents have little value. The ore is gen-
erally high grade, though sometimes siliceous, but a large proportion
of the deposits are not at present available by reason of remoteness
from transportation lines and distance from suitable fuel for their
reduction.
(11) IGNEOUS CONTACT ORES.
GEOLOGIC EELATIOJS'S.
This group is based exclusively upon its geologic relations, and
the deposits are widely distributed, though the most of them are
located in the Rocky Mountain and Pacific States. The essential
characteristics of the deposits are the following: They are steeply
dipping, lens-shaped bodies, which closely follow the contact of an
intrusive igneous mass and an intruded limestone. They occur
partly within the igneous rock as dikelike veins and partly within
the limestone, but generally at the immediate contact. The lime-
stone is always altered for a variable distance, sometimes several hun-
dred feet from the contact, the alteration consisting in extreme
silicifioation and the development of lime-bearing metamorphic min-
erals. The ores are magnetite, or more generally an intimate mix-
ture of magnetite and hematite. They are often altered at the sur-
face to red hematite and to some extent to limonite. The original
bedding planes of the limestone are sometimes preserved in the ore
body. The gangue consists of quartz and aluminous silicates, in part
the recrystallized impurities of the limestone and in part minerals
introduced along with the iron. The ores are believed to be due to
hot solutions rising from a deep-seated source through fissures in the
igneous rock at a period closely following its complete or partial
solidification.
CORNWALL DISTRICT, PENNSYLVANIA.
The principal eastern representative of this group is in eastern
Pennsylvania, where the ore, chiefly magnetite, has been mined since
the early part of the eighteenth century. These deposits, of which
the Cornwall mine is considered the type, occur at the contact of in-
trusive masses of Mesozoic diabase and Cambrian limestone. The
more easily accessible portions of the deposits have been mined out,
but they are estimated to contain 50,000,000 tons of ore, of which
about 15",000,000 tons are considered available under present condi-
tions.
IRON SPRINGS DISTRICT, UTAH.
These are the best known of the western representatives of the
§roup. They are located in southwestern Utah, about 250 miles from
alt Lake. The ore, which consists of both magnetite and specular
hematite (70 per cent of the former and 30 per cent of the latter),
occurs at or near the contact of laccolithic intrusions of andesite in
Carboniferous limestone. The aggregate surface of the known ore
bodies is 5.430,000 square feet, and the calculated tonnage to a depth
of 130 feet is 40,000,000 tons. While this is the greatest depth at
3572 UNITED STATES STEEL, COEPOBATION.
which the ore has been actually observed in prospect pits, a careful
consideration of its geologic relations leads to the conclusion that
it extends to considerably greater depths, and probably twice the
above tonnage may be taken as the amount which is present but not
now available. Practically no development has taken place except
the sinking of a large number of prospect pits.
OTHER DISTRICTS.
Ore deposits belonging to this group are Iniown to occur at numer-
ous localities throughout the West, but they have not generally been
examined in sufficient detail to permit accurate estimates of tonnage
being made.
In Utah deposits occur at Bull Valley, about 25 miles southwest of
the Iron Springs district and under similar geologic conditions.
In California they are found in the Cave Canyon and other districts
in San Bernardino County, in the Eagle Mountain district, Riverside
County, in Shasta County, and elsewhere. In Nevada large deposits,
estimated to contain at least 7,000,000 tons of magnetite and hematite,
averaging 63 per cent of iron, are reported to occur in the Lovelocks
district, in Humboldt and Churchill counties. Deposits also occur
in Lyon County. In Washington deposits which probably belong
to this group, although their relations are not known in detail, occur
at a number of localities in the northeastern part of the State, in
Stevens County. The ores are chiefly magnetite and hematite,
though in part altered to linionite.
In Colorado iron-ore dejiosits occur near Ashcroft, in Pitkin and
Gunnison counties, and in the White Pine and Cebolla districts, in
Gunnison County. Those of the Ashcroft district occur on both
sides of the Elk Mountains, at elevations between 11,000 and 12,000
feet above tide. The deposits are associated with limestones and
igneous intrusives. They are of considerable size, the one on the
northwest side of the divide being at least 300 feet on the strike and
from 40 to 122 feet thick. Its total depth is not known, but it is
proved to be at least 100 feet. The greater part of the ore is high in
iron and sulphur, but low in phosphorus.
In New Mexico iron-ore deposits occur at Chupadera Mesa and
at Fierro, in Grant County. The latter locality has been worked for
some years, furnishing a large amount of ore for the Pueblo furnaces.
The ore is associated with limestones and igneous intrusions, forming
lenses at or near the contact between the two. It is accompanied
by metamorphic minerals, as epidote and garnet, whieh are de-
veloped in the contact zone in great abundance. The ore is mag-
netite with subordinate amounts of hematite, and usually contains a
small amount of copper. The greater part of the easily accessible
high-grade ore has been mined out.
COMMERCIAL CLASSIFICATION AND SUMMARY OF ESTIMATES.
While the foregoing classification and grouping of the iron-ore de-
posits is a convenient one for purposes of description and for discus-
sion of the basis and value of tonnage estimates, the grouping does
not correspond with commercial conditions, and the estimates already
-^1
UNITED STATES STEEL CORPORATION.
3573
given are therefore summarized by commercial grades and districts
in the following table:
Estimates of iron-ore svpplies of the United States.
Magnetite ores.
Commercial districts (States).
Nontitaniferous.
Titaniferoua.
Available.
Not available.
Available.
Not available.
Long tons.
160,000,000
0 12,500,000
Long tons.
111,600,000
23,000,000
4,500,000,000
Long tons.
90,000,000
Long tom.
100,000,000
26,000,000
4. Mississippi Valley
» 51, 485, 000
0 68,960,000
0 115,440,000
11,800,000
1,500,000
6. Paoiflc Slope
Total
292,936,000
4,761,740,000
90,000,000
128,500,000
Hematite ores.
Commercial districts (States).
Specular and red.
Clinton.
Available.
Not available.
Available.
Not available.
1. Northeastern . . . ...
Long tons.
2,000,000
8,000,000
3,600,000,000
15,000,000
4,275,000
Long tons.
2,000,000
53,000,000
67, 475, 000, 000
10,000,000
2,100,000
10, 000, 000
Long tons.
36,000,000
463,540,000
10,000,000
Lon^ tons.
620,000,000
970,600,000
30,000,000
3. Lake Superior
4. Mississippi Valley
6. Rocky Mountain
6. Pacific Slope
Total
3,529,275,000
67,662,100,000
508,640,000
1,620,600,000
Commercial districts
(States).
Brown ores.
Carbonate ores.
Total supplies.
Available.
Not
Available.
Available.
Not
Available.
Available.
Not
Available.
1. Northeastern
Long tons.
11,000,000
64,400,000
Long tons.
13,500,000
168,000,000
Long tons.
Long tons.
248,000,000
62, 000, 000
Long tons.
298,000,000
538,440,000
3,510,000,000
315,000,000
57,700,000
68,960,000
Lon^i tons.
1,095,000,000
1,276,500,000
3. Lake Superior
72, 030, 000, 000
4. Mississippi Valley
i. Kocky Mountain
6. Pacinc Slope
300,000,000
2,000,000
560, 000, 000
1,625,000
105,000
570,000,000
120,666,000
23, 905, 000
Total
367,400,000
743,230,000
.510,000,000 4.7SS, i.io.ono
75,116,070,000
' '
• Includes some hematite.
1. Vermont, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Mary-
land, Ohio.
2. Virginia, West Virginia, eastern Kentucky, North Carolina, South Carolina, Georgia,
Alabama, east Tennessee.
3. Michigan, Minnesota, Wisconsin.
4. Northwest Alabama, west Tennessee, west Kentucky, Iowa, Missouri, Arkansas, east
Texas.
5. Montana, Idaho, Wyoming, Colorado, Utah, Nevada, New Mexico, west Texas,
Arizona.
6. Washington, Oregon, California.
3574 UNITED STATES STEEL COKPOKATION.
POBEIGN IRON-ORE SUPPLIES.
In addition to the ore supplies included in the table given above,
certain foreign deposits are so situated that they must depend, at
least to a considerable extent, upon the American market, and are
therefore to be considered practically a part of the available reserves.
The most important of these sources of foreign supply are located in
Canada, Newfoundland, Cuba, and Mexico. None of these countries
has an abundant fuel supply, and therefore either the fuel must' be
imported or the ore exported. The history of the iron industry indi-
cates that the latter is most likely to occur, particularly when the
industry is already established and the chief market for the finished
product is near the fuel supply. This tendency may be interrupted
by artificial means, such as bonuses and tariffs, but such interference
with the natural course of industrial development is only temporary,
and in the long run the industry will gravitate to the point of the
lowest cost of production.
CANADIAN OEES.
Recent explorations have shown the existence of considerable areas
of the iron-bearing formations on the north shore of Lake Superior.
The total tonnage of the iron formation in the Animikie, Micnipico-
ten, and other north-shore districts is calculated at 93,600,000,000
tons. If the same proportion of this total be considered low-grade
ore as in the Michigan and Minnesota districts it will amount to
about 20,000,000,000 tons. Since these north-shore districts are not
as yet thoroughly prospected, the ratio between high and low grade
ores can not be definitely determined, but it is almost certainly much
lower than in the Michigan and Minnesota districts. The best esti-
mate of ore now available in these Canadian districts is 9,000,000 tons.
Deposits of iron ore of the igneous contact type are known to
occur in British Columbia, and those on Texada Island have been
mined to some extent. These deposits are estimated to contain at
least 30,000,000 tons of ore of present commercial grade and probably
a considerably larger amount of low-grade and deep ore not now
available.
NEWFOUNDLAND ORES.
The most important of these are Clinton ores occurring on Belle
Isle. Their area is definitely known and the doubtful factors are the
proportion of ore below present commercial grade and the amount of
available ore in beds known to extend under the ocean. The supply
of available ore has been estimated at 30,000,000 tons, and the amount
not now available may be several times this amount.
MEXICAN OBES.
Large deposits of iron ore are known to occur in various parts of
Mexico. They are chiefly of the igneous contact and gossan types,
and no estimate of any value can be made of their available tonnage.
Eemoteness from centers of iron production will prevent their ex-
tensive exploitation for the present, and they are therefore to b«
regarded as wholly within the unavailable class.
■UNITED STATES STEEL COEPORATION. 3575
CUBAN ORES.
By far the most important foreign source of iron ore, measured by
the extent of the supplies and their accessibility, is Cuba. The de-
posits are of two kinds, specular hematites of the Santiago district
and brown limonites of the Mayari, Moa, Baracoa, Cubitas, and Pinar
del Rio districts. The hematites have been worked extensively since
1884, and for a number of years have furnished more than 50 per cent
of the total iron-ore imports. They are estimated to contain about
9,000,000 tons of ore, about half of which is actually measured.
The limonites are widespread residual deposits derived from the
weathering of igneous rocks. The ore contains from 43 to 52 per
cent of iron, phosphorus below the Bessemer limit, and between 1 and
2 per cent of chromium. These deposits are as yet practically un-
developed, but the more important ones have been fairly well pros-
pected, and it is estimated that they contain an aggregate of 3,000,-
000,000 tons, at least one-third and possibly one-half of which may
be regarded as now available. Most of the deposits are located near
the northern coast of the island, so that they have the advantage of
cheap water transportation to all parts of the Atlantic seaboard.
They are without question destined to play an important role in the
iron industry of the United States.
SUMMARY OF FOREIGN SUPPLIES.
The total estimated foreign supplies of ore sufficiently high-grade
and accessible to mining and transportation to be at present available,
and so located as to affect the iron industry of the United States, are
shown in the following table:
Estimated foreign iron ores.
Canada : Long tons.
British Columbia, magnetite chiefly 30,000,000
Lalie Superior district, hematite chiefly 9,000,000
Nova Scotia, Clinton hematite 4,000,000
Newfoundland, Clinton hematite 30, 000, 000
Cuba:
Santiago district, hematite 5, 000, 000
Mayari, Moa, Baracoa, Cubitas, and Pinar del Rio districts
(limonlte) 1, 500, 000, 000
Total 1, 578, 000, 000
IMPORTS AND EXPORTS.
The total imports of iron ore since 1889 have been 3 per cent of
the domestic production for the same period. They have shown
great annual fluctuations, responding quickly to changes in indus-
trial conditions. Since 1904 there has been a steady and rapid in-
crease in imports, and this increase may be expected to continue in
the future even more rapidly with the expanding development of
the Cuban limonite deposits.
3576
UNITED STATES STEEL COKPOKATION.
The extent to which foreign ores are now supplying the market is
shown by the following table of imports :
Imports of iron ore from foreign countries, 1889-1907.
Year.
Cuba.
Newfound-
land and
Labrador.
Quebec,
Ontario,
etc.
Spain.
Other
countries.^
Total.
1889
iOTM/ tons.
243, 255
361,814
257, 189
307, 115
349,977
140, 026
367,265
380, 551
383, 820
105,623
360, 813
431,265
626,583
696,375
613,585
364,630
539,935
639, 362
657, 133
Lona torn.
14,450
6,320
Long tons.
4,091
22,211
2,126
8,606
372
443
Lon.g tons.
298,668
612,933
323, 771
236,957
99,640
16,067
77,694
121, 132
66, 193
13,335
145,206
263, 694
180,810
153,527
94, 720
36,810
191,861
171,870
296,318
Long torn.
293,209
353,662
329,778
253,907
76,962
11,773
79,304
160,323
10,707
8,250
90,093
66,749
16,814
29,824
15,724
2,886
4,159
65,873
159,154
Long Urns.
853,573
1890
1,246,830
1891
912,864
1S92
806,585
1893 .
526,951
1894
167,307
1SU5
624, 153
1896
20,800
29,250
682,806
1897. . .. .
489,970
1898
187,208
1899
77,970
140,535
6 79, 360
81,920
1186,730
5,400
5,600
6 125, 395
89,685
674,082
897,831
1900
5,588
163, 383
203,824
169,681
77,887
104,096
67,890
26,878
1901
966,950
1902
1,165,470
1903
980, «0
487,613
1904
1905
845,651
1906
1,060,390
1907
1,229,168
Total
7,776,305
763, 415
847,076
3,290,006
2,029,040
14,705,842
" Belgium, Brazil, British Columbia, England, France, French Africa, French West Indies,
Germany, Greece, Italy, Mexico, Netherlands, New Brunswick, Norway, Nova Scotia,
Oceania, Portugal, Sweden, Turkey in Asia, Turkey in Europe, Venezuela, etc.
<> Includes Newfoundland only.
The exportation of iron ores has fortunately never assumed large
proportions, as shown by the following table :
Exports of iron ore from the United States, 1899-1907.
Year.
Quantity.
Valuo.
1899
Long torn.
40,665
31,460
64,703
88,445
80,611
213,865
208,017
265,240
278,208
176,287
1900
154,750
1901
163,455
1902
294,168
1903
265,728
1904
453,823
1905
630,457
1906
771, 83J
1907
763,422
Total
1,271,214
3,468,945
This export consists chiefly of Lake Superior ores shipped to
Canadian furnaces for mixture with local ores. It contains also some
high-phosphorus ores from the Adirondack district shipped to Ger-
many. This movement has practically ceased, owing to increased
home demand for these ores.
WASTE IN MINING AND BEBUCTION.
Where iron ore occurs in the form of bedded deposits and is mined
underground, waste is apt to occur from the same causes as in coal
mining. These are the leaving of pillars to support the roof, often
UNITED STATES STEEL COBPOEATION. 3577
unnecessarily large, the leaving of low-grade ore in the mine where it
can subsequently be recovered only with diflSculty, if at all, and the
breaking down of an overlying bed where the lower of two beds in
the same territory is mined first. These sources of waste are confined
largely to the Clinton ores, and the available facts are insufficient for
closely estimating its amount, but the proportion of recovery varies
with local conditions between 75 and 90 per cent and is undoubtedly
increasing with improvement in mining methods. In computing
the available tonnage of the Clinton ores an average recovery of 75
per cent has been assumed. Portions of the Clinton ore beds at
present considered of no value because of shale partings and conse-
quently left in the ground might be mined at many points if the shale
could be separated from the ore economically. Improvement in clean-
ing and concentrating methods will undoubtedly make the recovery
of much ore of this character possible. In the steeply dipping mag-
netite and hematite beds practically all ore up to the required grade
is mined out, and the ground is generally left in such condition that
the mines can be reopened for the recovery of lower-grade ores.
In surface workings waste is confined largely to small operations
where quick returns are required, and systematic development is im-
possible. In such cases much ore is lost by dumping barren strip-
pings and low-grade ore together, so that it can be recovered only with
difficulty, if at all. Where the operations are on a large enough scale
to warrant the installation of mechanical excavators, and a proper
ore-dressing plant, this waste does not occur and practically all the
ore in a deposit is recovered. Some waste of finely divided ore occurs
in the process of washing brown ores to remove the associated clay,
and there is still room for improvement in operations of this kind.
If it becomes necessary to mine material which is below the grade of
present requirements, but which contains enough iron values to make
it a possible ore in the future, such material is stacked so that it will
be available at any future time. This policy has been most consist-
ently followed in the Lake Superior district, and when such low-
grade ores are required large amounts will be available merely at the
cost of loading on the cars.
In the early days of iron making an appreciable part of the iron in
the ores went into the slag and was permanently lost. Blast-furnace
practice, however, has been so greatly improved in recent years that
this source of waste is eliminated and practically all of the iron in the
ore is now recovered.
PEODTJCTION AND USE OF IRON ORES.
The beginning of the iron industry in America dates from 1645,
when a ftimace and forge were built at Lynn, in the province of
Massachusetts Bay. In the century following a large number of
small furnaces and bloomeries were operated in the New England
colonies, using bog ores almost exclusively, and during this period
Massachusetts was the chief iron producer. In 1734 the richer brown
ores of western Connecticut and southern New York were opened and
largely replaced the bog ores. The manufacture of iron was begun
in eastern Pennsylvania in 1716, and a few years later in northern
New Jersey, using the rich magnetites of that region. The industry
had a rapid growth, notwithstanding the restriction placed upon it,
3578 UNITED STATES STEEL COKPOBATION.
and at the time of the Kevolution there were over 140 furnaces and
bloomeries in operation in this district.
In the fifty years preceding the Revolution a number of furnaces
and forges were in operation in Maryland, Virginia, and the Caro-
linas, located for the most part on the tide-water streams of the
coastal plain and using the brown ores associated in small quantities
with the clays and sands of the coastal formations. The deposits of
magnetite in the crystalline rocks of the Piedmont were also worked
during this period to a slight extent.
After the close of the Revolution the iron industry expanded
rapidly, following the westward progress of settlement, and had
reached western Pennsylvania and the Appalachian Valley of Vir-
ginia and Tennessee before the close of the eighteenth century. In
the first third of the nineteenth century it had reached as far west as
Missouri and north to Michigan. During this period conditions
favored a wide distribution of the industry. Charcoal was the only
fuel used, and this could always be obtained in the immediate vicinity
of the ores. Transportation facilities were very poor, and the small
furnaces so situated as to supply the local demand, even working on
inferior ores, could compete with the older establishments at a dis-
tance. About 1840 a revolution was effected in the iron-making in-
dustry by the introduction of anthracite and bituminous coal as a
furnace fuel. The capacity of the furnaces was rapidly increased, and
with improvement in transportation facilities the industry was con-
centrated at a relatively few points advantageously located with refer-
ence to the new fuel supply. Under the changed conditions the ore
was brought to the fuel, hence only the best ore and the largest de-
posits were worked, and many districts, as Ohio and Kentucky, which
had been heavy producers, were practically abandoned. With the de-
crease in average iron content of ores going into the furnaces, due to
the depletion of the richest deposits, there is at present a notable
tendency toward decentralization of the industry and a consequent
reopening of abandoned ore deposits, though it wiU never revert to
the conditions which prevailed during the charcoal period.
The statistics of iron production during the early years of the in-
dustry were not collected, and the total amount of iron ore consumed
can not be determined. Not until 1889 were annual statistics of ore
production collected, though they are available for the two preced-
ing census years 1870 and 1880, and the annual production of inter-
mediate years may be derived from the known production of pig iron
as far back as 1870. Basing an estimate upon the average pig iron
production shown for census years prior to 1870, the total iron ore
produced from 1810 to 1869 was approximately 49,656,000 tons, and
on the annual production of pig iron from 1870 to 1888 it was 153,-
758,000 tons. These amounts added to the 475,162,000 tons produced
from 1889 to 1907 give a grand total of 678,576,000 tons produced
since 1810. The amount produced during the Colonial and Revolu-
tionary periods and up to the third census in 1810 is so small in com-
parison with the total production since that time as to be a negligible
quantity.
In deducing the iron ore production from the production of pig
iron, it should be borne in mind that a small proportion of this iron
was made from imported ores and also that some pig iron is made
from other materials than natural ores, as blue billy, zinc residues,
UJNlTJiU STATES STEEL CORPORATION.
3579
rolling-mill cinder, scrap, etc. On the other hand, iron ore is used
for other purposes, as in the manufacture of paint, as a fix or fettling
in puddling furnaces, and as a flux in silver smelting, and the amount
so used practically offsets the amount of material other than iron ore
charged into the blast furnaces.
..„„„. „1870 I87S 1880 • 1885 1890 ' I89S ' 1900 ' ' 1905 1
5QOOO,000
45.000,000
40,000,000
o 35,000,000
■00
c
o
c
'c 30,000,000
'+j
u
D
^25,000,000
C
C
*"■ 20,000,000
15,000,000
10,000,000
5,000,000
/
/
'
r-.
\\
> 1
Iron 0
V
/
/
/
/
/
/
^A 1
1
on
/
y
"V
/
1
•
/ St'ee
1
/
X''
-y
f
.-••-
-•-•-•-•"
-^-•-•-►-'
■VV-^
Fig. 1. — Curve showing the production o( Iron ore, pig Iron, and steel In the United States,
1870-1907, In long tons.
The production of iron ore from 1870 to 1907, inclusive, is shown on
the accompanying diagram along with the production of pig iron and
steel for the same period.
The curve representing the production of pig iron shows more
fluctuations than the ore curve, and that representing production of
steel more than the pig-iron curve. In other words, the production
3580
UNITED STATES STEJEXTTX^im
of steel responds most promptly to varying industrial conditions.
Thus the production of steel in 1907 shows practically no increase
over 1906, while the rate of increase in ore is above the average for
the preceding eighteen years. This is explained by the fact that the
industrial depression of 1907 came so late in the year that it only
slightly affected the output of iron ore, particularly in the Lake
Superior district, where mining is more active in summer than in
winter. It is practically certain, however, that the output of ore for
1908 will show a decided decrease similar to, and probably larger,
than that which marked the years 1893-94 and 1904. The years 1892,
1902, and 1907 occupy maximum points in the curve, and each is fol-
lowed by a decided drop and rapid recovery far beyond the preced-
ing maximum. It may be safely predicted that the curve will resume
its upward trend in 1909 after the drop of 1908.
The distribution of the production since 1889 among the varieties
of ore enumerated in the chemical classification is shown in the fol-
lowing table:
Production of iron ores in the United States, hy varieties, 1889-1907.
Year.
Magnetite.
Hematite.
Brown ore.
Carbonate.
Total.
1889
Long tons.
2.606,416
2, 570. S3S
2,317,108
1,971,965
1,330,880
972.219
I.3i;s.222
1,211,520
1,059.479
1,237,978
1,727,430
1,5:!7,551
1,813.076
1. OSS. 860
1,675.422
l.fi3s,840
2,390.417
2,409.294
2,079.067
Long tons.
9, 056, 288
10, 527, 050
9, 327, 398
11,046,019
8,272,037
9,347,434
12,513,995
12, 576, 288
14,413,318
16,150,084
20,004,399
22,708,274
24,006.025
30,532,149
30, 328, 654
23,839,477
37,667.055
42,481.375
46,060,486
Long toTis.
2,623,087
2, 659, 938
2, 767, 664
2, 486, 101
1,849,272
1,472,748
2, 102, 358
2,126,212
1,901,954
1,989,081
2.809,785
3,231,089
3,016,716
3, .305, 484
3,080,399
2,146,795
2,546,662
2,781,063
2,967,477
Long tons.
432,261
377,017
189, 108
192,981
134,834
87, 278
73,039
91,423
83,295
66,373
81,669
76,247
51,663
27,642
34,833
19,212
21,999
17,996
23.689
Long tons.
14,618.041
16,030,043
14,691,178
16,290,666
11,687,629
11,879,679
16,957,614
16,005,449
17,618,046
19,433,718
24,683,173
27,553,161
28,887,479
35,554,135
35,019,308
27,644,330
42,620,133
47,749,728
61,720,619
1890
1891
1892
1893 . ...
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1906
1906
1907
Total
33, 960, 699
7.1
5.2
391,360,205
82.4
89.1
47,703,384
10.1
6.7
2,071,939
0.4
475,162,127
Percentage of totals for nineteen years . . .
Percentage of total for 1907
The present relative importance of the several varieties is shown
by the percentage and also the increasing importance of the hematite
as compared with the other varieties. The combined total produc-
tions of brown ore and carbonate for the nineteen years is 2,000,000
tons less than the total production of all varieties for the year 1907.
The distribution of production for 1906 and 1907 among the six
commercial districts is shown in the following table :
uiNixjii; iSXAXJfib STJSEIi COKPOKATION.
3581
Production of iron ores in the United States, by commercial districts, in 1908
and 1907.
District.
1906.
Quantity.
Percent-
age of
total.
1907.
Quantity.
Percent-
age of
total.
1. Northeastern
3. Southeastern
3. Lake Superior
4. Mississippi Valley
5. Roclcy Mountain.
6. Pacific slope
Total
Long tons.
2,682,666
6, 208, 140
38, 035, 084
117,570
806,268
5.40
13.00
79.66
.25
1.70
Long tons.
2,822,822
6,197,360
41,638,744
230,435
831,258
(«)
5.45
12.00
80.60
.45
1.60
47,749,728
100. 00
51,720,619
» The small production of California and Washington is Included in the production of
the Rocky Mountain district.
These figures indicate the commanding position of the Lake Supe-
rior district in the iron industry with 79.66 and 80.60 per cent of the
total production for the two years.
DURATION OF THE IBON-ORE SUPPLY.
Predictions of the date of exhaustion of the iron-ore reserves in-
volve a number of unknown factors, each of which adds to the uncer-
tainty of the result. Among these factors the following may be
mentioned :
1. The uncertainties of the estimates of reserves and the difficulty
of fixing the ratio of the two classes have been fully explained in the
sections devoted to the description of the ore deposits.
2. The extent to which imported ores will supplement the domestic
supply can not be foretold, but it will be an increasingly important
factor.
3. The extent to which the reserves will be increased by the discov-
ery of new ore bodies can not be estimated, but it is highly improbable
that all the important iron-ore deposits are now known.
4. The ores of the first class will not be entirely exhausted before
utilization of the second class begins, and changing conditions, par-
ticularly of transportation and metallurgy, will continually shift
the line dividing the two classes.
5. The stock of metal which can be reworked is constantly increas-
ing and must eventually reduce the demand for metal obtained
directly from the ores.
6. The substitution of other materials for metal now used for cer-
tain purposes, particularly for construction, will reduce the consump-
tion to an extent which can not be even approximately estimated, and,
on the other hand, the proportion of structures into which iron enters
as an important constituent will undoubtedly increase.
7. The per capita consumption of iron ore has shown a rapid in-
crease since the beginning of the iron industry. For 1907 and the
four preceding census years it has been as follows : 1870, 180 pounds ;
1880, 313 pounds; 1890, 560 pounds; 1900, 806 pounds; and 1907, 1,344
pounds.
31572— No. 52—12 9
3582 UNITED STATES STEEL COEPOKATION.
8. The increasing cost of iron due to the increase in cost of fuel
and the use of lower-grade ores requiring an increased amount of fuel
per ton of iron smelted, will induce greater economy in the use of the
metal; on the other hand, improvements in metallurgy will tend to
secure a larger yield of metal for a given expenditure of fuel and
power and may substitute low-grade fuel for the higher-grade coal
now required in the blast furnace.
The most striking feature of the iron-ore production curve is the
remarkable rate of increase shown in the period covered. Taking the
production since 1870 by decades and estimating the last two years
of the present decade, 1908 and 1909, the percentage rate of increase
for each decade over the one preceding is shown in the following
table :
Production of iron ore hy decades and rate of increase.
Decade.
Quantity.
Percent-
age of
increase.
1870-1879
LoTtQ tons.
43/770,527
91,043,864
163, 989, 193
<» 392, 000, 000
1 880 1889
108.0
1890-1899
SO.l
1900-1909 -.. . .
138.0
» Approximate.
Each of the above decades, as shown by the production curve, con-
tains a depression in which there was an actual decrease in production,
so that they may be taken as fairly representing the tendency of the
industry. These rates of increase are such that they do not permit
the construction of a curve on which predictions for the future can
be based. A comparison of the first and second rates, 108 and 80.1,
would indicate a rapid decrease in the rate of increase, which, if con-
tinued, would have placed the date of maximum production about
1930. But a comparison of the second and third rates, 80.1 and 138,
would indicate a rapid increase in the rate of increase. If the average
rate of increase by decades, 108.7 per cent, should be continued, it
would require the production in the next three decades of 6,088,000,000
tons. But the ore supply now available in the United States is esti-
mated at 4,788,000,000 tons, which is only 78 per cent of the amount
needed on this assumption. It is evident, therefore, that the present
average rate of increase in production of high-grade ores can not
continue even for the next thirty years, and that before 1940 the pro-
duction must already have reached a maximum and begun to decline,
and a very large use must be made of low-grade ores not now classed
as available. The second condition, with its consequent greatly in-
creased cost of iron, is the only thing which can prevent a decline in
the iron industry, measured by the amount of pig iron produced,
within the next thirty years, unless there is in the meantime very
greatly increased importation of foreign ores.
In view of the many factors entering into the problem, the ten-
dency of which is not always determinable, to say nothing of the
weight that should be given them, any further prediction as to the
date of exhaustion of the iron-ore supplies is so uncertain as to be
wholly unprofitable and unwarranted.
y^
UJMXJiU STATES STEEL COEPOEATION.
3583
No. 13. — IRON OB.ES: Estimated Supply in 1908, by Commercial Districts and
Species.
[From Keport of National Conservation Commission, prepared by Geological Survey, Department of
ttie Interior.]
Magnetite
ores.
Commercial district.
Nonti fcaniferous.
Titaniferous.
Available.
Not available.
Available.
Not available.
Long tons.
160,000,000
8 12,500,000
LoTig tons.
111,500,000
23,000,000
4,500,000,000
Long tons.
90,000,000
Long tons.
100,000,000
Southeastern 2
25,000,000
Mississippi "Valley ^ . ...
8 51,485,000
3 68,960,000
3 116,440,000
11,800,000
1,600,000
2,000,000
Pacific slope '
Total
3 292,935,000
3 4,761,740,000
90,000,000
128,500,000
Commercial district.
Hematite ores.
Specular and red.
Available.
Not available.
Clinton.
Available. Not available.
Northeastern i
Southeastern '
Lake Superior *
Mississippi Valleys.
Rocky Mountain s. . .
Pacific slope'
Lon^ tons.
2,000,000
8,000,000
3,500,000,000
15,000,000
4,275,000
Long tons.
2,000,000
53,000,000
67, 476, 000, 000
10,000,000
2,100,000
10,000,000
Long tons.
36,000,000
460,320,000
10, 000, 000
Long tons.
620,000,000
736,600,000
30,000,000
Total.
3,529,276,000
67,662,100,000
505,320,000
1,385,500,000
Commercial district.
Brown ores.
Available.
Not
available.
Carbonate ores.
Available.
Not
available.
Total supply.
Available.
Not
available.
Northeastern i
Southeastern!
Lake Superior 4
Mississippi Valleys..
Rocky Mountain «. . .
Pacific slope'
Long tons.
11,000,000
64,400,000
Long tons.
13,500,000
168,000,000
Long tons.
Long tons.
248,000,000
62,000,000
300,000,000
2,000,000
560,000,000
1,626,000
105,000
Lon^ tons.
298,000,000
635,220,000
3,610,000,000
315,000,000
57,760,000
68,950,000
Long tons.
1,095,000,000
1,041,500,000
72,030,000,000
670,000,000
120,665,000
23,906,000
Total.
367,400,000
743,230,000
310,000,000
4,784,930,000
74,881,070,000
'Includes Vermont, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland,
and Ohio.
2 Includes Virginia, West Virginia, Eastern Kentucky, North Carolina, South Carolina, Georgia, Ala-
bama, and East Tennessee.
3 Includes some hematite.
* Includes Michigan, Miimesota, and Wisconsin.
' Includes Northwest Alabama, West Teimessee, West Kentucky, Iowa, Missouri, Arkansas, and East
Texas.
• Includes Montana, Idaho, Wyoming, Colorado, Utah, Nevada, New Mexico, West Texas, and Arizona
' Includes Washington, Oregon, and Calilomia.
3584
UNITED STATES STEEL COKPOBATION.
Totnl
Duu.
81,
1910.
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3585
to Ol M W
as?;
1
g ^ s
^ s g
13,992,765
2,892,926
10,412,854
13,480,499
2,601,039
9,713,933
i s
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2,077,739
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8,639,818
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2,713,496
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9,212,229
2, 548, 340
6,060,738
8,264,276
2,109,081
5,504,997
CO ?
7,299,398
2,147,840
4, 342, 004
CI -^
S5 S
7,385,762
1,938,219
4,296,722
i §
I^ 0> t- tH C^ N
Geographical divi-
sions: 8
New England and
Middle States....
Southern States
Western States
Pacific States
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3586
TJNITBD STATES STEEL COHPOEATIOIT.
No. 1 22.— PIG-IKON PEODTJCTION: ^ Quantities and Kinds, Calendar Years 1904
TO 1910, BY States.
[From the annual reports of the American Iron and Steel Association.!
ANTHRACITE AND MIXED ANTHRACITE AND COKE PIG IRON.
State.
1901
1905
1906
1907
1908
1909
1910
New York
New Jersey
Pennsylvania ...
Maryland
Tons.
1 134,762
1
1,091,641
1,737
Tons.
189,423
1,485,092
Tons.
173,341
1,387,345
Tons.
117,288
1,254,266
Tom.
I 355,009
Tons.
698,431
Tons.
649,082
Total
1,228,140
1,674,515
1,560,686
1,371,554
355,009
698,481
649,082
CHARCOAL PIG IRON.
MaKsaehusetts ...
3,149
Connecticut
8,922
[ 16,991
20,239
19,119
214,494
2 20,629
216,632
New York
29,904
Pennsylvania ...
2,593
3,294
2,663
2,289
2,479
2,691
4,142
Maryland
Virginia
5,335
1
2,071
4,903
1,444
3,298
6,588
1,666
Tennessee
Texas
\ 8, 180
Kentucky
1
[ 21, 857
3 27,018
20,519
19, 474
14, 684
9,453
Georgia
24,648
Alabama
30,492
25,548
2.5,830
35,141
23,815
33,641
35,701
988
4,176
5,460
2,425
2,400
1 060
Michigan
171,519
210,573
281,368
294, 922
143,492
231,733
260,805
Wisconsin
Washington
51, 799
68,419
65,536
261,638
«39, 694
267,037
>'65,026
California
Total
337,, 529
3.52, 928
433,007
437,397
249, 146
376,003
394,377
BITUMINOUS COAL AND COKE PIG IRON.
New York
547,184
1,111,885
1,605,201
1,669,752
1,018,795
1,731,434
1,938,357
New.Terfcy
156, 153
206, 795
253,607
265,901
192,852
266, 846
262,669
Pennsylvania ...
6,550,087
9,090,741
9,857,861
10, 091, 994
6, 662, 723
10,266,330
10,621,008
Maryland
290, 905
331,870
31.=., 300
411,833
183,502
284,856
326,614
West Virginia...
270, 945
298, 179
304,534
291,066
65, 561
228,282
174,661
Kentucky
37,106
63,381
9.'., 945
126, 984
43, 172
84,016
98,951
Tennessee
299,446
370, 217
424,341
390,606
288, 316
330, 909
394,078
Virginia
North Carolina . .
361,498
628,036
Georgia
560,327
1,649,018
617,095
1,651,633
326 466
404, 725
1,729,976
450,342
Texas
1,373,199
Alabama
1, 423, 021
1,578,514
1,903,443
Ohio
2,976,941
1,655,991
4 581 935
5,321,683
2 156 866
5 94ft OfiO
2,858,925
1,691,944
5,661,546
2,467,156
6,750,007
2,675,646
Tllinnis
2, 034, 483
2,467,768
Indiana *
Wisconsin
218, 342
^32,057
364,891
368,268
5 316,985
5 971,837
5 1,194,022
Michigan
Minnesota
153,745
436,844
454,524
512,348
310,984
424,625
Colorado
466,288
Washington
Total
14,931,364
20, 964, 937
23,313,498
28,972,410
16,331,863
24,721,037
26,255,086
'In tons of 2,240 pounds.
^Includes a small quantity of pig iron made with charcoal and electricity
' Includes about 500 ton.| of pig iron made in Georgia in 1906 with charcoal' and coke mixed as fuel.
< The production of Indiana is included with Wisconsin and Michigan for 1907 1908, 1909, and
1910 only. Prior to 1907 Indiana had not made pig iron for a number of years
'Includes a small quantity of iron made experimentally in Michigan with manufactured gas.
tJNITED STATES STEEL COBPOKATION. 3587
No. 123.— CRUDE-STEEL PEODTJCTION; Quantities and Kinds, 1877 to 1909.
[From the annual reports of the American Iron and Steel Association.]
Calendar year.
Bessemer
ingots and
castings.
Open-
hearth
ingots and
castings.
Crucible
ingots and
castings.
All other
steels.
Total.
1877
Long tons.
500,524
653,773
829,439
1,074,262
1,374,247
1,514,687
1,477,345
1,375,531
1,519,430
2,269,190
2,936,033
2, 511, 161
2,930,204
3,688,871
3,247,417
4,168,435
3, 215, 686
3,571,313
4, 909, 128
3,919,906
5,475,315
6,609,017
7,586,354
6,684,770
8,713,302
9, 138, 363
8,592,829
7, 859, 140
10,941,375
12,276,830
11, 667, 549
6,116,755
9,330,783
Long tons.
22,349
32,255
60,269
100,851
131,202
143,341
119,366
117,615
133, 376
218,973
322,069
314,318
374,543
513,232
579,753
669,889
737, 890
784,936
1,137,182
1,298,700
1,608,671
2,230,292
2,947,816
3, 398, 135
4,656,309
6,687,729
5, 829, 911
5,908,166
8, 971, 376
10,980,413
11,649,736
7,836,729
14,493,936
Long tons.
36,098
38,309
50,696
64,664
80,145
75,973
71,836
53,270
67, 699
71,973
75,375
70,279
75,866
71,176
72,586
84,709
63,613
51,702
67,666
60,689
69,959
89,747
101,213
100, 662
98,513
112,772
102, 434
83,391
102, 233
127,513
131,234
63, 631
107,366
Long tons.
10,647
7,640
4,879
7,568
2,720
2,691
4,999
4,563
1,515
2,367
5,694
3,682
5,120
3,793
4,484
4,548
2,806
4,081
858
2,394
3,012
3,801
4,974
4,862
5,471
8,386
9,804
9,190
8,963
14,380
14,075
6,132
22,947
Long tons.
569,618
731, 977
935,273
1,247,335
1,588,314
1,736,692
1,673,535
1,560,879
1,711,920
2, 562, 603
3 339 071
1878 ....
1879
1880
1881
1882
1883
1884
1885.
1886
1887.
1888
2, 899, 440
1889.
3 386 732
1890.
4,277,071
3, 904, 240
1891 .
1892
4,927,681
1893
4, 019, 995
1894
4,412,032
1896
6, 114, 834
1896
6,281,689
7, 156, 957
1898
8, 932, 857
1899
10, 639, 857
1900 .
10, 188, 329
13, 473, 595
1902
14, 947, 250
1903
14, 534, 978
1904
13, 859, 887
20, 023, 947
1906
23, 398, 136
1907
1908
23, 362, 594
14, 023, 247
1909
23,955,021
"So. 124. — IBOIT-ORE PEODUCTION: Quantities, by States and Tbhritoeibs,
Calendar Ybahs 1904 to 1909.
[From reports of the Geological Survey, Department of the Interior.]
State or Territory.
1904
1905
1906
1907
1908
1909
Long tans.
3,699,881
150,972
21,990
293, 802
< 594, 898
7,089,887
12,728,835
49,285
« 210, 945
499,949
842,303
64,347
15,672
397, 107
500,982
483,475
Long tons.
3,782,831
(')
133,471
25,931
8 257,124
< 785, 414
10,885,902
21,735,182
113, 012
'718,299
526,271
1,139,937
(10)
19,989
808,717
734,770
(")
859, -283
Long tons.
3,995,098
2 36,660
14,078
31, 343
411,230
46,940
11,822,874
25,364,077
80, 910
792,190
542,518
1,041,992
56,057
17,384
949,429
870,734
828,081
848,133
Long tons.
4,089,453
118,667
11,714
37,166
444,114
62,808
11,830,342
28,969,668
6 111,768
8 819,544
549, 760
1,375,020
50,439
23,589
837, S87
813,690
786,856
838,744
Lonqtons.
3,734,438
2 55,966
10, 176
28,112
321,060
63,235
8,839,199
18,662,220
98,414
9 518,449
394,767
697,473
48,522
26,585
443,161
635,343
692,223
733,993
Long tons.
4, 321, 252
26,474
Colorado
10,000
Connecticut and Massachu-
38,272
Georgia
221,016
Kentucky, Maryland, and
West Virginia
98,657
11,900,384
Minnesota
28,976,149
89,954
Montana, Nevada, New Mex-
ico, Utah, and Wyoming. . .
New Jersey
9766,416
543,720
1,016,333
North Carolina . . .
61,160
Ohio
16,527
666,889
657,795
837,847
Wisconsin
1,067,436
Total
27,644,330
42,526,133
47,749,728
61,720,619
35,983,336
51,294,271
'Texas included under Montana, etc.
Arkansas in 1905.
''Texas only.
:8 Includes North Carolina.
'•Includes Virginia; also Iowa in 1905.
' Includes Iowa.
also 'Includes Texas.
' Includes Arkansas and Texas.
"Includes California and Washington.
'Includes Washington.
10 Included under Georgia.
"Included under Kentnckv. etc.
3588
UNITED STATES STEJiL. CUKTOlfATnXN.
No. 274.— PIG IKON PEODTICED, IMPORTED, EXPOETED, AND RETAINED FOB
CONSUMPTION: Quantities (in Toxs of 2,240 Pounds), 1867 to 1910.
Period.'
Production.2
Export
of
dome-stic.
Domestic
retained
for con-
sumption.
Export
mports.3
of
foreign.
Tons.
Tons.
128,608
70
183,126
400
311,224
1,058
81,916
260
82,891
159
62, 936
100
26, 763
103
14,174
115
88,126
572
22, 159
206
26,640
376
23,316
741
61, 100
157
39, 325
222
168,961
200
956,198
1,950
191,135
564
122, 977
1,762
271,790
3,160
564,846
6,663
204, 092
1,730
104,656
1,640
237,694
627
Total
retained for
consump-
tion.
Per cent
of con-
sumption,
foreign.
1867-701,
1871-80*
1881-90*
1891
1892....
1893....
1894....
1896....
1896....
1897....
1898....
1899....
1900....
1901S...
19026...
19036...
19046...
19055...
19066...
19076...
190S6...
19096...
19106...
Tons.
1,413,306
2, 188, 526
6, 153, 463
9, 202, 703
8,279,870
9, 157, 000
7, 124, 602
6, 657, 388
9,446,308
8, 623, 127
9,6r>2, 680
11,773.934
13, (;'.;0, Tu:l
13, 7S9. 242
15,.S7N, S.'vt
17
.S21
307
l.H
0(19
2.'>2
ii;
.I',I7
ii:;:i
■>,
9'.i2
;;mj
2o
3U7
191
25
781
:wi 1
1.1
U:',6.01S
25
795
471
Tons.
690
6,393
7,886
13,435
16,940
20,068
26, 529
22,517
29, 862
168,890
236,868
299, 641
160, 090
255, 2.53
54,704
18, 19,S
34, 636
66, 971
69, .509
85,000
52, 618
50, 178
79, 771
Terns.
1,412,716
2,183,133
5, 146, 567
9, 189, 268
8,263,930
9, 136, 932
7,097,973
6, 634, 871
9, 416, 446
8, 454, 237
9, 415, 812
11, 474, 293
13, 460, 013
13, 533, 989
16,823,650
17, 803, 109
17, 974, 617
16,440,062
22, 932, 871
26, 222, 191
25,729,843
15,885,840
25, 715, 700
Tons.
1,541,254
2, 365, 858
6,465,733
9,270,924
8,346,662
9,199,768
7,123,633
6, 648, 930
9, 503, 999
8, 476, 191
9,441,076
11, 496, 868
13, 520, 966
13,573,092
16, 982, 411
18, 767, 367
18, 166, 198
16, 661, 277
23, 201, 601
26,781,374
26,931,205
15,988,865
26,962,667
8.34
7.72
6.69
.61
.36
.21
.93
.26
.21
.20
.45
.29
5.08
1,05
.73
1.16
2.17
.78
1.64
.91
1 The periods relate to years ended June 30.
2 The production is of the calendar year preceding the fiscal year.
3 Mostly ferromanganeae.
* Average for the period.
6 Does not include data with respect to commerce between the United States and insular possessions.
No. 275.— IRON AND STEEL RAILROAD BARS PRODUCED, IMPORTED, EXPOETED,
AND RETAINED FOR CONSUMPTION: Quantities (in Tons op 2,240 Pounds),
1867 TO 1910.
Production. 2
Export
of
domestic.
Domestic
retained
for con-
sumption.
Imports.
Export
of
foreign.
Total
retained
for
consump-
tion.
Period.'
Iron.
Steel.
Total.
1867-703
1871-803
1881-903
1891
Tons.
440,571
,501,728
123,821
13,882
8,240
10,437
6,090
4.674
6,810
4,347
2, S72
3,319
1,592
695
1,730
6,612
667
871
318
16
925
71
Tons.
4,336
252,560
1,310,152
1,871,425
1,298,936
1,641,407
1,130,368
1,017,098
1,300,325
1,117,663
1,M5,020
1,977.922
2,271.108
2, 3,H4, 9S7
2,872,909
•2,941.421
2,991,810
2,283. «40
3,?,7,i,i;il
3, 977, 872
3,632,729
1,920,944
3,023,845
Tons.
444,907
754,288
1,433,973
1,88.5,307
1,307,176
1,551,844
1,136,458
1,021,772
1,306,135
1,122,010
1,G47.S'.I2
1,981.24]
2, 272, 7UU
2, ;W.=i, (;k2
2, 874, 639
2,947,933
2,992,477
2,284,ni
3, 375, 929
3,977,887
3,633,654
1,921,015
3,023,846
Torn.
299
2,549
4,655
15,881
8,260
15,698
16, 645
12,192
27,645
112,172
232,552
277, .SS5
347, 805
374,978
167,466
22,977
162,407
409, 507
345, 826
291,322
278,867
284,128
369,578
Tons.
444, 608
751, 739
1,429,318
1,869,426
1,298,916
1, 536, 146
1,119,813
1, 009, 680
1,278,490
1,009,838
1,415,340
1,703,356
1,924,896
2,010,704
2,707,183
2, 924, 9.56
2,830,070
1,875,204
3,030,103
3,686,665
3,364,787
1, 686, 887
2, 654, 267
Tons.
191,210
169,838
97,731
134
299
932
2,178
784
1,056
7,777
629
624
2,487
1,091
15,017
122,444
53,358
17,026
9,635
4,610
2,839
1,292
7,030
Tons.
280
4,676
9,059
19
100
Tons.
636,688
916,901
1,617,990
1,869,641
1,299,115
1,637,078
1,120,663
1,009,709
1,279,546
1892
1803
1S91
IS'.IS
1,S91'.
i,338
665
1897
1,017,616
1,415,467
1,703,980
1,927,382
2,011,796
2,722,197
3,046,836
2,882,863
1,892,200
3,089,736
3,691,175
3,367,626
1,688,179
2,661,297
1898
402
1899
1900
1901*
1902'
8
564
665
29
2
1903'
1905'
1906'
1907'
1908'
1909'
1910'
1 The periods relate to years ended June 30.
2 The production is of the calendar year preceding the fiscal year
3 Average for the period.
' Does not include data with respect to commerce between the United States and insular
UNITED STATES STEEL COBPOEATION.
3589
No. 276.— TIN PLATES, TEBNEPLATES, AND TAGGEES TIN PEODUCED, IMPORTED,
EXPOETED, AND EETAINED FOE CONSUMPTION: Quantities, 1899 to 1910.
Year ended
June 30—
Production.'
Exports
of
domestic.
Domestic
retained for
consumption.
Imports.
Exports
of
foreign.
Total
retained tor
consumption.
Per
cent of
con-
sump-
tion,
for-
eign.
1899
Pounds.
732,289,600
808,360,000
677,969,600
894,411,840
806,400,000
1,075,200,000
1,026,384,851
1,105,440,000
1,293,740,000
1,153,097,000
1,203,075,000
1,370,788,000
Pounds.
205,910
319,579
1,367,405
2,405,812
1,555,146
8,107,666
22,990,816
25,967,137
19,894,288
33,622,717
11,411,104
26,168,315
Pounds.
732,083,690
808,040,421
676,602,196
892,006,028
804,844,854
1,067,092,334
1, 003, 394, 035
1,079,472,863
1,273,845,712
1,119,474,283
1,191,663,896
1,344,619,685
Pounds.
108,484,826
147,963,804
117,880,812
198,996,086
109,913,293
126,909,360
161,066,820
120,819,732
142,529,406
140,739,972
117,312,174
154,566,599
Pounds.
497,813
850,228
519, 400
183,738
79,190
1,120
180,550
57,648
1,379
59,074
11,000
197,600
Pounds.
840,070,703
955,158,997
793,963,107
1,090,818,381
914,678,957
1,194,000,574
1,164,280,305
1,200,234,947
1,416,373,739
1,260,155,181
1, 308, 965, 070
1,498,988,684
12.85
1900
15 40
1901
14 78
1902.
18 23
1903
1904
10.63
1905. -
14 00
1906
10 06
1907.
10 06
1908
11.17
1909
9.00
1910
10.30
1 Production is of the calendar year preceding the fiscal year,
3590
UNITED STATES STEEL COEPOB.ATIOlt.
No. 335. — Statistical Record of the Phogeess of the United States,
1800-1910— Continued .
Production of principal commodities — Continued.
Year.
Natural
gas.*
Petroleum.*
Phosphate
rock.
Iron ore.*
Pig Iron.*
Steel.*
Qulclf-
silver.'
1800
Dollars.
Oallons.
Long tons.
Long tons.
Long tons.
Long tons.
Flask.
1810
53,908
20,000
165,000
286,903
563,755
1820
1830
!
1840
1
1850
1
1861
1852
1
1853
1854
657,338
700,159
788,515
712,640
629,548
750,600
821,223
653,164
703,270
846,075
1,014,282
831,770
1,205,663
1,305,023
1,431,250
1,711,287
1,665,179
1,700,793
2,548,713
2,660,963
2,401,262
2,023,733
1,868,961
2,066,694
2,301,215
2,741,863
3,835,191
4,144,254
4,023,323
4,595,510
4,097,868
4,044,526
5,683,329
6,417,148
6,489,738
7,603,642
9,202,703
8,279,870
9,157,000
7,124,602
6,657,888
9,446,308
8,623,127
9,662,680
11,773,934
13,620,703
13,789,242
15,878,354
17,821,307
18,009,252
16,497,033
22,992,380
25,307,191
25,781,361
16,936,018
25,795,471
27,298,545
1855 .
1866
1857
1
1858
1859
84,000
21,000,000
88,771,578
128,380,980
1860
1861
1862
1863
109,674,978
1864
.. . .
88,876,578
104,903,400
151,103,400
1865
1866. .
140,586,000
153,136,914
177,030,000
220,951,290
218,619,828
264,314,148
415,539,012
458,931,090
510,825,588
383,572,098
560,715,246
19,643
26,786
31,250
68,750
73,214
1868
1869 1
1870 1
13,031,891
1871 .
1872
1873
198 796
1874
215,727
389,799
633,191
669,618
731,977
935,273
1,247,336
1,588,314
1,736,692
1,673,635
1,580,879
1,711,920
2,562,503
3,339,071
2,899,440
3,385,732
4,277,071
3,904,240
4,927,681
4,019,995
4,412,032
6,114,834
6,281,689
7,166,967
8,932,857
10,639,857
10,188,329
13,473,595
14,947,260
14,534,978
13,859,837
20,023,947
23,398,136
23,362,694
14, 023, 247
23,965,021
1875
1876 .
1877
1878 1
646,668,456
836,394,132
1,104,017,166
1,161,771,996
1,281,454,860
984,884,586
1,017,174,396
918,068,970
1,178,723,322
1,187,906,286
1,159,705,050
1,476,867,546
1,924,590,024
2,280,291,510
2,121,405,694
2,034,104,772
2,072,469,672
2,221,475,592
2,660,336,162
2,539,971,672
2,325,297,786
2,396,976,700
2,672,062,218
2,914,346,148
3,728,210,472
4,219,376,154
4,917,400,320
5,658,138,360
5,312,745,312
6,976,004,070
7,498,148,910
7,649,&39,50S
1879
1880
211,377
266,734
332,077
378,380
431,779
437,856
430,649
480,658
448,567
650,245
610,499
587,988
681,571
941,368
996,949
1,038,551
930,779
1,039,345
1,308,885
1,616,702
1,491,216
1,483,723
1,490,314
1,581,576
1,874,428
1,947,190
2,080,957
2,265,343
2,386,138
2..isn.1.'i2
'7,120,362
69,926
1881
60,851
1882
215,000
475,000
1,460,000
4,857,200
10,012,000
15,817,500
22,629,875
21,097,099
18,792,725
15,500,084
14,870,714
14,346,260
52,732
46,725
1883
1884
31,913
1885
32,073
29,981
33,825
1886
1887
1888
33,250
1889
14,618,041
16,036,043
14,691,178
16,296,666
11,587,629
11,879,679
16,967,614
16,006,449
17,518,046
19,433,716
24,683,173
27,553,161
28,887,479
36,554,135
35,019,308
27,644,330
42,526,133
47,749,728
61,720,619
3,5,983,336
51,294,271
26,484
1890. .
22,926
1891
22,904
1892
1893
27,993
30,164
1894 .
13,954,400
13,006,650
13,002,612
13,826,422
15,296,813
20,074,873
23,698,674
27,006,077
30,807,8I«
35,807,860
38,496,700
41,502,855
30,416
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905
36,104
30,765
26,648
31,092
80,464
28,317
29,727
34,291
35,620
34,670
30,4(1
1906
40,873,932
54,222,399
64, 640, 374
63,206,941
26,238
1907
21567
19,762
21,075
1908
1909
1910
♦Calendar years.
1 Tlie figures are those of the Bureau of the Census and cover census years.
^,
|8I §§5
.r
•^'n
.^
UJSITBD STATES STEEL CORPORATION. 3593
The Chairman. I have here a receipt covering the amount of
money Mr. Brown swore he received from Billson, Congdon &
Dickinson, in consideration of being permitted to drop this case.
Mr. Young. Will you not read it ?
The Chairman (reading) :
William W. Billson, Chesteb A. Congdon, Daniel A. Dickinson.
Law OrPicEs, Billson, Congdon & Dickinson,
Suite 511, Lonsdale Building, Duluth, Minn.,
Dulutn, April 23, 1898.
Received of John G. Brown, $550, in full of all charges to be made against
him for attorneys' fees, costs, or disbursements in proceeding for reduction
of ore freights about to be commenced in name of himself and others against
D. & I. R. R. R. Co., and D. M. & N. R. R. Co.
Billson, Congdon & Dickinson.
Mr. Young. Does that say about to be commenced, or commenced ?
The Chairman. About to be commenced.
Mr. Reed. What is the date ?
The Chairman. It is dated Duluth, April 23, 1898.
Mr. Reed. I have some information, Mr. Chairman, you have asked
for. Do you wish to hear from me now ?
The Chairman. Yes.
Mr. Reed. You have subpcenaed Mr. J. H. Reed to appear this
morning and present a statement showing the total tonnage of freight
handled over the docks of the Pittsburgh & Conneaut Dock Co., at
Conneaut Harbor, Ohio, for the year 1910, showing particularly the
tonnages of ore, coal, and miscellaneous freight for said year.
I have such a statement here. I understand you will not require
Mr. Reed's presence before the committee, if we produce the state-
ment.
The statement referred to is in the words and figures following,
to wit:
The Pittsbuegh & Conneaut Dock Co.
Conneaut Habbob, Ohio.
Statement shoitHng tommges handled during the year ended Deo. 31, 1910.
Tons.
Ore unloaded from vessels 6, 309, 548
Tons.
Ore loaded on cars direct from vessels 5, 375, 275
Ore loaded on cars from dock 1, 066. 248
Total ore loaded on cars 6,441,523
Cement loaded on vessels 18,962
Cargo coal loaded on vessels 616, 429
Cargo coke loaded on vessels 204
Steel rails loaded on vessels 21, 907
Structural steel loaded on vessels 1, 991
Coal sold to vessels for fuel 136, 505
The Chairman. Before you go any further, Mr. Reed, the chair-
man of the committee desires to say he offers no objection to the
insertion in the record of any Government publication, bulletin, or
report of any State commission. I have heretofore said I hardly
think it pertinent to incorporate in the record newspaper articles,
unless they were in the nature of exhibits or explanations of some
3594 UNITED STATES STEKb UUKl'UKATiUJS.
testimony; but I offer no objection to the introduction and publishing
of "A Decade in United States Steel."
As I understand, that document is published by the Steel Corpo-
ration.
Mr. Eeed. I believe not.
Mr. Steeling. I think it is by Dow, Jones & Co.
Mr. Young. Mr. Farrell was examined as to that. He said they
did not have anything to do with it, and that it to some extent criti-
cized the management of the Steel Corporation.
The Chaie3ian. I understood it was published under their di-
rection.
Mr. Young. No.
Tlie Chair:\iax. It is published by
Mr. Young (interposing). It is published by the Wall Street
Journal.
The Chairman. That is, by a newspaper. I will extend the rule
to the limit, however, in making no objection to its publication.
Mr. Young. It is very much the same situation as in connection
with that article by Mr. Muncie.
The Chairman. Yes; it is along the line of any publication by a
well-known author; if it is not so large as to encumber the record
it can very properly go in it.
Mr. Young. This embraces a lot of facts, and gives the prices
as to steel stocks and things of that kind, that are very handy.
The Chairman. All right, Mr. Eeed.
Mr. Reed. You asked me at one of the hearings two weeks ago to
get you the form of contract with jobbers that had been prepared
by Mr. BufRngton.
Mr. Young. Who ?
Mr. Eeed. Mr. E. J. Buffington, the president of the Illinois Steel
Co. That was mentioned in the minutes of the sales managers at
their meeting of June 14, 1909. I have that form of contract here.
My information from ISIr. Buffington, however, is that it was never
executed with these jobbers that are mentioned in it, and that no
contract to the same effect was ever executed with any other jobber.
Mr. Young. It was a proposed contract?
Mr. Eeed. It was a proposed contract that Mr. Buffington men-
tioned in this meeting of the sales managers, and it was under dis-
cussion there. It was mentioned in the minutes, and the chairman
asked me to produce the original draft.
Mr. Young. It is really part of the minutes?
Mr. Eeed. It is part of the minutes of the meeting, but, as a matter
of fact, it never went into effect with these jobbers or with any
others.
The Chairman. Can you turn to the minutes, to the entry of the
minutes explaining that. It might be well to have it all go into
the record together. Eead what it says in the minutes.
]Mr. MacEae. It is the one hundred and seventh meeting, June,
1909, relations with jobbers:
Mr. Buffington has prepared a form of contract which is along the lines
discussed at our last meeting. It Is drawn up tentatively as to Ryerson, but
is intended to cover all others as well, and in brief is as follows :
That the jobbers will absolutely give up direct shipments. They will carry
no stock but that manufactured by the corporation in its particular lines.
<JJM1XJ5JJ STATES STEEL CORPOBATION. 3595
They will carry It on consignment and be allowed a compensation by the cor-
poration for putting it in and taking it out of stock on the sliding scale basis,
following out the suggestion that tli"re will be a minimum of $1 and maximum
of $2 per ton, based upon prices for the materials. The agreement can be
terminated upon 60 days' notice by either party. * * * if cancellation is
made there is provision that the jobber, if he so desires, can purchase the stock
on hand at that time at the last market price; in other words, if we should
serve notice July 1 that we want to terminate it September 1, the price at which
the stock can be purchased would be the price for the month of August. If he
does not desire to take the stock on this basis, then we are to dispose of It our-
selves. Provision is also made that for any material these people may fabricate
there will be no allowance whatevM*.
One hundred twenty -first meeting, August 17, 1910 :
The chairman advised that the Carnegie and Illinois companies had served
notice on the large jobbers Ryerson and Bourne-Fuller that with the expiration
of their present contracts August 23 the policy would be to charge them market
prices on all material they buy. The small allowance will be made on the
material- that actually goes into their warehouses, but nothing whatever will
be allowed on anything shipped direct to customers.
One hundred twenty-second meeting, September 2, 1910:
Relations with jobbers. Allowance on tonnage which goes into warehouse of
jobbers of $1.50 per ton for handling when the price is 1.40 cents, but if there
should be any change, either up or down, it will be a question of conference as
to what allowance will be made. On all direct shipments the market price wiU
be charged.
One hundred thirty-third meeting, August 16, 1911 :
Relations with jobbers. Mr. Andrews stated he thought we can figure upon
the competition of the Pacific Hardware & Steel Co. on the coast. He has had
several interviews with Mr. Scott and Mr. Norton, of this company, and they
seem to have made up their minds that they are going to cooperate with other
people In opposition to us. Mr. Worcester said it is not, of course, the intention
in establishing a warehouse there to try to shut out competition — in fact, we
want competition — and he believes it would be to our disadvantage to try to
take the Pacific Hardware & Steel Co. (and all other large buyers) away
from competitors, which will result in making the independent manufacturers
hunt the whole coast for business. Personally he thinks there is no more
desire on the part of these people to fight us than we have to fight them, but
that they look at the matter in a broadminded sort of way and that they will
hold prices. At the same time he believes that practically every seller on the
coast will at times look to our warehouses for his needs.
That is all there is on that page.
The Chairman. This can go in.
Mr. Eeed. Why should that go in ? It was never executed.
Mr. YoTTNG. It will go in as part of the exhibits.
Mr. MacRae. I had it as part of an exhibit.
The Chairman. All of that, Mr. Reed, is illustrative of this alleged
tentative agreement. You can hand a copy of that tentative agree-
ment to the stenographer, to be incorporated in the record.
The paper referred to is in the words and figures following, to wit :
Whereas J. T. Ryerson & Son, of Chicago, 111., hereinafter referred to as
party of the second part, has been engaged in the sale of structural material,
merchant bar steel and plates, for a long term of years and has established
In Chicago large warehouses for storing and shipping such materials and has
built up, through Its selling organization, a large trade throughout the United
States to which said materials are sold, such trade being known as a " jobbers'
trade ; " and
Whereas it now desires to eater into an agreement ^Ith some one manufac-
turer exclusively to supply its requirements of said materials for this trade;
and
3596 UNITED STATES^STBELT-UOltrLuia.j.j.ui'..
Whereas the Illinois Steel Co., of Chicago, lU., hereinafter referred to
party of the first part, manufactures certain kinds and sizes of these materia
and, through arrangement with the Carnegie Steel Co., of Pittsburgh, Pa., ci
supply other kinds and sizes of these materials, and is desirous of enter!-
into an agreement with the said second party for supplying the trade of t
second party with structural material, merchant bar steel and plates :
Therefore, the following agreement Is entered into this day of Juii
1908, to wit :
Party of the first part hereby agrees to ship to the warehouses of the secoi
party in Chicago, 111., such of the above-named materials of such kinds ai
sizes as are made by the party of the first part or by the Carnegie Steel O
of Pittsburgh, Pa., as the party of the second part may order from time i
time. The said materials so ordered and shipped to be stored in the war
house of the second party in Chicago, 111., in an orderly manner, so as
permit of conveniently and accurately taking inventory of said materials i
any time.
It is understood and agreed by the parties hereto that at no time during tl
term of this agreement shall the aggregate stocks of said materials In tt
said warehouses be greater than the total quantity than twenty thousan
(20,000) net tons.
On the first day that this agreement becomes operative and on the first da
of each calendar month thereafter during the continuance of this agreemei
the party of the first part shall stipulate in writing the prices at which
will sell said second party the said materials stored in said warehouses f(
the ensuing calendar month, and shall stipulate the length of time durlr
which sales and deliveries may be made by the party of the second part froi
the said stock at the stipulated prices.
On the 15th day of each calendar month succeeding date of this agreemei
the said second party shall pay to the said first party for all of the said mati
rials shipped by It from said stock at the prices stipulated by the said firi
party as above provided. Such shipments of said materials from said wari
houses by the party of the second part to be paid for in accordance with tt
weights of said materials as they were shipped from the mills of the said firi
parly or from the mills of the said. Carnegie Steel Co. to the said warehouse;
and in case said second party elects to cut or shear any of the said material
into different lengths and weights than those in which the said materials wer
shipped from the said mills, the said second party shall bear the expense c
shearing or cutting, including the value of the discarded materials. The sal
second party shall render an account daily to the said first party of any an
all shipments of said materials from the said warehouses. And at any tlm
during the term of this agreement said first party may call for the taking o
an inventory of said materials within the said warehouses for the purpose o
verifying quantities shipjied from the said materials so stored, the said secom
party hereby agrees to take such inventory when called for in the presence o
a representative of the first party and render statement thereof to the firs
party.
The party of the second part hereby agrees to use its best effort and abilit
in selling such materials so stored in its warehouses to that class of customer
known as " jobbers' trade." And it further agrees that all sales of such ma
terials made by it or through its organization shall be delivered from the siiii
materials in said warehouses; and it is distinctly understood and agreed hereb.
that no sales of such materials by said second party or by any part of it
organization shall be shipped or supplied from any other source than the sai(
materials so stored in said warehouses.
In consideration of the services so rendered by the oarty of the second part
the party of the first part agrees to pay the party of the second part, when sac'
materials are sold and shipped from the said warehouses by the party of th
second part, the following rates of commission :
When the price of merchant bar steel stipulated by the party of the firf
part, as herein provided, is not lower than $1.38 base per hundred pound
f. 0. b. cars Chicago, and the price of structural material and plates stipulate
by the party of the first part, as herein provided, is not lower than $1.48 bas
per hundred pounds f. o. b. cars Chicago, a commission of $1.50 per net ton
and when the price of merchant bar steel stipulated by the first party, as herei
provided, is not lower than ^1.58 base per hundred pounds f. o. b. cars Chicag'
and the price of structural material and plates stipulated by the first party, s
herein provided, is not lower than $1.68 base per hundred pounds f. o. I
„^,xj.jiij axAxaa axJliiSLi COEPOKATION. 8597
fRvs Chicago, a commission of ,$2 per net ton. The payment of these commis-
sions to be made by the first party to the second party on the 15th of each
jmonth following the date of this agreement for all of the said materials sold
■and shipped by the second party from the said warehouses during the previous
month.
It is further agreed and understood that when the prices or price stipulated
by the first party, as herein provided, are or is below $1.38 base for merchant
bar steel and $1.48 base for structural material and plates f. o. b. cars Chicago,
the first party is to pay the second party no commission or compensation of
any kind for selling and shipping such materials from said warehouses.
This agreement to continue In effect until terminated as herein provided.
Each party hereto reserves the right to terminate this agreement by giving
written notice to the other party 60 days prior to the date of termination.
If and when such notice of termination is given by either party, the second
party may, at its option, exercised within 10 days thereafter, by notice in
writing to the first party, purchase all of said materials remaining in said
warehouses unsold at the date of termination, at the prices stipulated by the
party, of the first part, as herein provided, on the first day of the month prior
to such notice of cancellation. In the event that said second party does not
elect to exercise such option of purchase, then at the date of termination the
said second party will, at its own expense, load on cars and ship to the first
party all of said materials remaining In said warehouses and unsold at the date
of the termination of this agreement.
It is further understood and agreed that if said second party desires to use
any of the said materials or to have them so used for what is termed fabricating
purposes, such materials may be so used, and are to be paid for by the second
party at the prices stipulated from time to time by the first party, as herein
provided, but no commission or allowance of any kind is to be paid the second
party on account of such materials so used.
Mr. Young. Have you ascertained whether any such contracts were
executed along this line?
Mr. MacRae. No ; we would have nothing to go by except the min-
utes, unless we asked the officials, as we have in this instance. He
says it was not executed.
Mr. Reed. I might add the sentence that follows what Mr. MacRae
read from the minutes of the meeting of June 14, 1909. The next
sentence following the place where he stopped is:
Altogether it is a very fair arrangement, and one which meets practically all
of the views expressed at the last meeting, and Mr. Baker and himself have
been asked to go over and dress it up. after which a meeting will be called with
the other presidents, and if they are agreeable it Is probable that it can be
closed within a very short time.
It shows that it was not even then in final form.
Now the chairman has also asked me to procure a copy of the plan
for bonuses adopted by the Steel Corporation. I have that here,
certified by Mr. Trimble, secretary.
The Chairman. You can turn that over to the stenographer for
insertion in the record.
The paper referred to is in the words and figures following, to wit:
United States Steel Cokporation, Empire Building, New York.
Office of the Seobetart.
I, Richard Trimble, secretary of the United States Steel Corporation, do
hereby certify that the following is a true and correct extract from the minutes
of the finance committee at a meeting held on December 2, 1902 :
" Upon motion, duly seconded, and by the affirmative vote of all present, the
detailed plan for profit sharing, as submitted by the chairman, and a copy of
which is annexed to the minutes of this meeting, was approved."
Richard Trimble, Secretary.
Seal:
United States Steel Corporation, February, 1001, New Jersey.
31572°— No. 52—12 10
3598 UXITED STATES S^S=
To the Board of Directors of the United States Steel Corporation:
Gentlemen : The following report and recommendations are made on the
question of profit sharing:
At the time of the formation of the Steel Corporation there \yere various
profit-sharing plans in vogue in some of the constituent companies. It did not
seem advisable to discontinue these, although some of them were continued
temporarily or in modified form.
As the companies have become familiar with the workings of one another
the existence of these profit-sharing plans has become known to all, with the
result that we have been faced for more than a year with the problem of either
abolishing them altogether or adopting a profit-sharing plan that would apply
with equal fairness to all the companies.
The question has been canvassed a great deal for more than a year, but not
until now have we been able to hit upon a plan that i^ acceptable to the presi-
dents and other officers of the constituent companies, the officers of the Steel
Corporation, and the executive and finance committee.
One of our main difficulties has been to hit upon some plan that would apply
with equal fairness to every man, from the president to the man with pick
and shovel. Because of the fact that the Steel Corporation is so much in the
public eye, we have felt that any profit-sharing plan that did not, in some way,
include every employee, would be subject to public criticism. We have felt,
too, that there were a number of objects to be accomplished by any plan of
this kind.
First. To interest the large number of young and able men in the work of
more closely organizing and systematizing the corporation's business, not only
in connection with their own local concerns, but the Steel Corporation as a
whole.
Second. To interest them in reducing the general expenses of the corporation
as well as the local cost of manufacture.
Third. We have felt it important to offer some inducement to these men to
remain permanently in the corporation's service.
Fourth. We have felt that a iirolit-sharing plan that pertained solely to a
constitutent company might have a tendency to build up the profits of that
company to the jiossible detriment of the broadest and best interests of the
corporation as a whole.
Fifth. We have felt it important to devise a plan by which, in the appro-
priation of money for improvements and development of plants, Company A,
for Instance, would be interested in what Company B was doing, and Company
B in what Company A was dning, with a view to having, as nearly as possible,
an automatic regulator on unnecessary duiilication of appropriations.
We realize that the accomplishment of all the above desirable results is ex-
pecting a good deal from any one plan, and the plan we recommend may fall
short of our expectations; but we have canvassed it very carefully for several
weeks; we have had the presidents of all the subsidiary companies here ic
New York for some days, and have been in daily conference with them ovei
the matter until they are unanimous in their approval of our recommendatior
which is as follows :
The corporations in which this corporation is interested have in their em
ploy about 168,000 men. One hundred and twenty-two thousand of these mei
receive $800 or less per annum. It has, therefore, seemed to us almost impoi
sible to devise any plan by which this large number of laboring men coul
participate in a profit-sharing plan on a cash basis. We have, therefor'
divided our plan into two parts :
PART ONE.
A plan to offer to all employees of the corporation, from the president to th'
laboring man, an opportunity to buy the corporation's preferred stock in tb
following manner :
We propose dividing the 168,000 employees into six classes :
Glass A. — All those who receive salaries of .^20,000 a year and over, and with
the readjustment of some salaries and the discontinuance of others there will
be not to exceed 1.5 men in this class.
Class B.— All those who receive from $10,000 to $20,000 a year, of whicJ
there will be not to exceed 50 men.
Class C— All those who receive from $5,000 to $10,000 a year, of which there
will be about IIjO.
ui-TTxiZL/ o±\a.iJio oiKJiij CORPORATION. 3599
Class O.— All those who receive from $2,500 to ?;"> 000 a year, of which there
Will be about 1,300.
Class E.—All those who receive from $800 to $2,500 a year, of which there
Will be something over 122,000.
We propose to ofCer for sale to these employees, as of January 1, 1903, say,
25,000 shares of preferred stoct at whatever the finance committee considers a
fair market price in December, allowing them to subscribe for as much stock
as they choose, not to exceed a sum represented by a certain percentage of their
annual salaries, as indicated in the following: Class A, 5 per cent; class
B, 8 per cent ; class C, 10 per cent ; class D, 12 per cent ; class E, 15 per cent ;
class P, 20 per cent.
The stock purchased must be taken In the name of the employee who pur-
chases it, and he must agree to pay for It in monthly payments of such amounts
as he may desire, not to exceed 25 per cent of any one month's salary. Divi-
dends on the stock will go to the purchaser from the date he commenced to
make payments on account of the purchase. Interest at 5 per cent will be
charged on deferred payments on the stock. In case a man discontinues pay-
ments before his stock is fully paid, he can withdraw the money he has paid
on account of principal.
If the 25,000 shares of stock are oversubscribed, allotments will be made pro
rata, but each subscriber will be allotted at least one full share.
A man may take as long as he chooses to pay for his stock, not exceeding
thtee years. As soon as it is fully paid for it will be delivered to him, and he
can then sell it at any time he chooses; but as an inducement for him to keep
it, to remain continuously in the corporation's employ, and to have more than
an ordinary interest in the corporation's welfare, he will be told that if he pre-
sents his stock to the treasurer of his company in January of each year, accom-
panied by a certificate from a proper official to the effect that he has been
continuously in the corporation's service during the year and has shown a
proper interest in its welfare and progress, he will receive checks at the rate
of $4 a share per year for five years. For example, if a man buys one share
of this stock in January, 1903, and pays, say, $85 for it, keeps it for five years,
and remains in the corporation's employ during the five years, he will have
received $20 at the end of that time in the shape of five checks of $4 each.
This money will have been paid him for remaining continuously in the corpora-
tion's service, for having become a partner through the ownership of stock, and
for having presented each year a letter from a proper official showing that he
has worked to promote the corporation's best interests.
If the man does not continue for five years, the yearly allowances to which
he would have been entitled will be credited to a special fund, interest allowed
on this fund at the rate of 5 per cent per annum, and the total amount so
accumulated will be divided at the end of five years among such men as buy
the stock, keep it for five years, remain in the corporation's employ for five
^ years, and give satisfactory service.
" The financial benefit of the above to the man who continues will be that his
''stock, for which he paid, say, $85 a share, has cost him only $65 a share, which
ought to be a safer and more attractive investment than he can find anywhere
else for whatever money he can ordinarily save out of his wages or salary;
_and in addition to this he will receive a dividend, so to speak, of a sum which
;*can not be ascertained in advance from the fund above referred to, made up
;^of the allowance of the various men who do not fulfill the conditions and cease
''at some time during the five years to be entitled to $4 a year on their stock.
It is believed that this will interest at the very beginning a substantial num-
ber of our most thrifty men and that it will gradually interest a good many of
them, as it is contemplated saying to the men, when this plan is announced,
that if it is successful the corporation intends to make similar offers each year.
If 25,000 shares of stock were sold to the employees during 1903, it would
call for a cash outlay of .$500,000, distributed over five years.
It is suggested that if any man, while in the employ of the corporation,
becomes disabled or dies at any time during the five years, the money which
would have been paid him during the five years shall be paid to him or to his
estate.
It will be noted that in the above plan we have allowed the workingmen to
subscribe for a much larger amount of this stock, in proportion to their incomes,
than the officers can subscribe for. This is because we do not feel under so
great obligation to allow men with high salaries to buy stock on such advan-
tageous terms. On the other hand, we wish them to have the right to subscribe
iJbUU UNITED STATES S
for some amount, even though It be small, so that they will be on the same
footing as the laboring men; and as the higher salaried men will, of course, be
glad to take all the stock they are entitled to, their example to the laboring
men ought to be helpful to the plan as a whole.
The above is our plan for selling stock to the employees and interesting a
certain number of them in buying it and remaining permanently in the cor-
poration's service. It is intended to embrace the large body of men who have
no part in the direct management of the corporation's affairs and are not
responsible for results and are not able in any marked degree to affect the cost
of manufacture or the net profits as a whole.
Part No. 2, which is a strictly profit-sharing plan, is intended to reach the
men who are managing the affairs of the corporation, either at its head office
or at the oflices of the various subsidiary companies.
PART TWO.
In round figures it requires $75,000,000 to pay the interest on the corpora-
tion's bonds, the dividends on its preferred and conimun stock at the rates now
being declared, and to make sinking fund deposits. We have to-day about
55,000 stockholders. These men own the vast properties comprising the Steel
Corporation. We believe that they and other possible investors in tha corpora-
tion's stock would feel a certain sense, of security in the earning power of the
corporation if they knew that the oflicers and managing men generally of the
entire organization were willing to enter into a contract with the stockholders
by which part of their compensation for services rendered was to be paid only
after $80,000,000 had been earned. It is sn^'gesled, therefore, that there be an
adjustment of salaries so that every man in the corporation's employ will feel
that he is receiving a fair and reasonable salary for his services, and that over
and above that salary be shall have an opportunity lo earn each year a sub-
stantial sum of money, said sum being based wholly on the success of the
United States Steel ('nri)oration as a whole, in the foHnwing manner:
If $80,000.(1(10 and less than $90,0011,000 is earned during lOO.'i, 1 per cent
shall be set aside;
If $00,OUO,imO and less than $100,000,000 is earned during 1903, 1.2 per cent
shall be set aside;
If $100,0(JO.(i(i(t and less th.m $12(^,000,000 is e.irned during 1903, 1.4 per cent
shail be set aside;
If $110,000,000 and less than $120,(100,000 is earned during 1903, 1.6 per cent
shall be set aside;
If $120,000,(NiO and less tlian .$]:;0,( 100,000 is earned during 1003, 1.8 per cent
shall be set .'iside;
If $1.30,(XH),(i<jO and less than $1-10,(100,0(1(1 is earned during ]!i03, 2 per cent
shall be set aside :
If $140,000,000 and less than $1 .-|0,(JOO,000 is earned during 1903, 2i per cent
shall be set aside;
If $150,000.(100 and less than .fl(;o,000,000 is earned during 1903, 2i per cent
shall be set aside.
Whatever sum of money is thus set aside during 1903 shall be divided as
follows: Twenty-five per cent among the officers and more prominent employees
of the United States Steel Corporation at its head oflSce; 25 per cent
among the oflicers and more prominent employees of the subsidiary companies;
.50 per cent among such of the men of the subsidiary companies as have it
within their power to further the interests of the business in countless ways.
It is suggested that tl^e selection of the men to share in these profits shall be
left to the flniince committee on the recommendation of the presidents of the
subsidiary companies, approved by the proper officers of the United States Steel
Corporation. We may not in the first year get an equitable apportionment,
but it is not the intention to make permanent the above schedule or the appor-
tionment of the same; simply to announce it now as the program for the year
1903, leaving us free to announce any plan we may desire at the end of 1903 for
the year 1904.
Any profits distributed under the above schedule and to the above classes of
men will be paid out as follows: For example, if $80,000,000 is earned, tben
$800,000 would be the sum set aside for distribution during the year 1903.
It is proposed to distribute one-half of this sum in cash quarterly durhig the
year; reserve the other half until the end of the year, and then invest it In
preferred stock; divide the amount of stock thus purchased, distributing one-
COEPORATION. 3601
half to the employees who are entitled to it, and holding the other half in the
hands of the treasurer of the corporation, giving each man a certificate of his
interest, the certificate to recite, among other things :
First. That if he remains continuously in the corporation's service for five
years the stock: shall be delivered to him and he may do as he likes with it.
Second. That if he dies or becomes totally and permanently disabled while in
the employ of the corporation, the stocli will be delivered to his estate or to him.
Third. That he can draw the dividends declared on the stoclc while it is held
for his account and he remains in the corporation's employ.
Fourth. That if he voluntarily leaves the corporation's service, without its
previous consent, he forfeits all right to this stock, and it will be held in a fund
which will be divided at the end of five years among such employees as shall
have complied with all the conditions.
Thus 25 per cent of all the money set aside in this profit-sharing plan will be
held for five years and only given to such as are in the corporation's employ
during 1903 and remain continuously in its employ until January, 1908.
We have canvassed this question very carefully with the managing men of the
various subsidiary companies, and we believe that this plan will materially
quicken the interest of a large number of our men in the general success of the
Steel Coriwration and make them feel that they want to remain perrnanently in
its service.
It is believed that if the two plans above outlined are put into proper .shape
and announced before the beginning of next year it will' very materially
strengthen and solidify the entire organization ; that it will stimulate individual
effort all along the line; that it will give us a solid and compact organization,
working for one common end, and enable us to get unanimous support on any
and all plans looking toward further economies in manufacture and administra-
tion, and in this way will do more than anything else could to guarantee a
continuance of the corporation's present earning power.
In connection with the above profit-sharing plan it is the intention to announce
to the organization that the question of what constitutes profits at the end of a
year shall be determined solely by the finance committee, and as the finance
committee will have no interest whatsoever in the profit-sharing plan, its rulings
must be accepted as fair and impartial to all.
While adjusting this question of profit sharing, the finance . committee has
endeavored to arrange a more complete and satisfactory method of making
appropriations for renewals and improvements to plants during 1903. Up to
the present time, if any one of the constituent companies wanted an appropria-
tion for any purpose, the president of the company made his recommendation to
the oflicers of the Steel Corporation, who investigataed it so far as they could,
referred it to the executive committee, who considered the matter from every
point of view and, if approved by them, passed it on to the finance committee
for final action. Now that we hope to interest the president of each subsidiary
company in the profits of each of the other subsidiary companies, through a
profit-sharing plan of the Steel Corporation as a whole, we believe that one of
the very best methods of regnlating the expenditure of money on all the plants
will be to have the president of each subsidiary company give his opinion as to
the adfisability of a contemplated improvement or expenditure on any one of
the other plants, and it is the intention, therefore, to have a meeting of the
presidents of the subsidiary companies regularly, say, once a month, at which
meeting all questions of contemplated expenditures or improvements on any
plant will be discussed by all the subsidiary presidents, and their recommenda-
tions will then go to the officers of the Steel Corporation, the executive and
finance committees, for final action.
In the same manner questions of purchasing supplies, of regulating sales, etc.,
will be taken up at these presidents' meetings and dealt with from the broad
point of view of the Steel Corporation as a whole.
In short, the idea is to administer the affairs of the Steel Corporation by
committee work, as far as possible, and to impress on everyone in authority the
Importance of making one plant cooperate with another wherever possible and
of advantage to the Steel Corporation as a whole.
By order of the finance committee:
Geo. W. Peekins, Chairman.
New York, Dcccmhcr 2, ld02.
X
No. 53
(IX FOtTK PARTS)
PART I
DNITED STATES STEEL CORPORATION
HEAEINGS
BEFOBE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPRESENTATIVES
WEDNESDAY, FEBRUARY 28, 1912
r^
WASHINGTON
GOVETINMENT PRINTING OI'FIOE
1912
REPORT OF
FARQUHAR J. MacRAE
TO CHAIRMAN OF SPECIAL COMMITTEE TO INVESTIGATE
VIOLATIONS OF THE ANTITRUST ACT OF
1890 AND OTHER ACTS.
IN FOUR PARTS.
Part I.— REPORTS, ETC.
Part II.— EXTRACTS PROM MINUTES, ETC.
Part III.— DOCUMENTS, ETC.
Part IV.— INDEX.
3603
UNITED STATES STEEL COEPOKATION.
Committee on Investigation op the
United States Steel Cokpohation,
House of Eepkesentatives,
Washington, D. G., February S8, 1912.
The committee this day met, Hon. Augustus O. Stanley (chair-
man) presiding.
STATEMENT OF F. J. MacRAE.
The witness was sworn by the chairman.
The Chairman. You may proceed now, Mr. MacEae.
Mr. MacEae. I have the honor to transmit herewith the results of
my investigation to this date of accounts, documents, and papers
submitted to me by the United States Steel Corporation in accord-
ance with the authority vested in me under the resolution adopted by
the committee.
This report is in three sections:
Section 1 : The accounts dealing with the earnings of the corpora-
tion since its formation.
Section 2 : Exhibits submitted by the United States Steel Corpora-
tion in response to requests made by me ; Extracts from the minutes
of the United States Steel Corporation and subsidiary companies;
Extracts from previous reports made by me to the committee.
Section 3 : A summary of all the evidence extracted from the min-
ute books and exhibits, etc., and from the testimony taken by the
committee, up to the completion of the said summary, with which is
combined an index in three parts, showing (1) the subjects included
in the inquiry, (2) the companies and firms, and (3) the individuals
investigated and, referred to in the testimony, etc., together with a
brief of such evidence.
section 1 — accounts.
On or about September 1, 1911, the United States Steel Corpora-
tion submitted to me printed copies of the published reports of the
corporation for the years 1902 to 1910, inclusive, also the preliminary
report to the stockholders for the period from April 1, 1901, to De-
cember 31, 1901 (nine months), and the profit and loss statements of
3605
3606 UNITED STATES STEEL COEPOEATION.
the subsidiary companies of the United States Steel Corporation,
together with a general profit and loss statement of the United States
Steel Corporation and the Federal Steel Co., as holding companies,
for nine years, 1902 to 1910, inclusive. These statements were ac-
cepted by me, and I am satisfied correctly show in a summary form
the transactions of the several companies up to the point of net
earnings.
It would naturally be assumed that the summary income accounts
for each year, 1902 to 1910, inclusive, compiled from the several sub-
sidiary companies' profit and loss statements, would result in a gen-
eral profit and loss or income account of the United States Steel Cor-
.poration and its subsidiary companies for the period under exami-
nation.
This was the task undertaken from the data furnished me, and re-
sulted in the compilation of summary yearly profit and loss accounts,
which statements, however, did not agree with the annual published
reports of the United States Steel Corporation, except as to total
net earnings, all other items to wit: Total gross sales and earnings,
administrative and general expenses, other income, interest charges,
gains and losses, having been adjusted internally by the United
States Steel Corporation before arriving at the figures shown in the
published reports.
On or about December 1, 1911, I took up with the officials of the
United States Steel Corporation the question of these apparent large
discrepancies between the figures compiled by me and those submitted
by the corporation in their annual reports, and on December 12, 1911,
I received from the corporation the summaries of general profit and
loss accounts of all the companies for the period from January 1,
1902, to December 31, 1910 (nine years) , showing the inter-company
adjustments, which summaries, condensed and rearranged, are sub-
mitted herewith. (Exhibits Nos. 1 to 9, inclusive.) With these sum-
maries was handed to me the following explanatory memorandum,
which I quote in full :
These summaries cover a cumulation, according to the reppective groups,
of the profit and loss figures shown by the various subsidiary companies' state-
ments of general profit and loss. They also take up the eliminations and ad-
justments made for the purpose of reducing the final aggr'egate results on tbe
basis of a consolidated unit proposition, so far as the same is possible and
practicable. It is on this last-named basis that the figures shown in the annual
report in the table of general profit and loss are stated. It will be noticed that
the final aggregates, so far as gross figures are concerned, as shown in the at-
tached summaries, differ in some particulars from similar aggregates printed in
the annual reports for the respective years, although in every case the final
net earnings as shown by these statements conform to those printed in the
annual report * * *.
The differences in the aggregate of gross figures as above referred to result
from a different grouping or classifying of items of receipts and expenditures
UNITED STATES STEEL COEPOEATION. 3607
as worked into these final summaries in comparison with the manner originally
taken up In the preparation of the summaries which were printed in the annual
reports. The greater portion of the differences Is attributable to the fact that in
reabstractlng the statistics in the compilation of these summaries (all of which
work was taken up and done at some considerable time after the annual report
statement was gotten out), there was adhered to certain well-defined regulations
and principles of classification which seemed to best Illustrate the operations.
As before stated, the net earnings agree with the final net as reported in the
annual reports, and this is the essential feature. These summaries represent
our best and most careful efforts to classify all items uniformly in the several
companies, in the different years, and in accordance with the facts. The re-
sult as to net earnings agrees, and that is the test to be applied.
In order to explain the sources of the data presented in the sum-
maries above referred to, the following explanation should be made :
The subsidiary companies keep their own sets of books just as if they
were not controlled by the Steel Corporation as a holding company.
Each subsidiary company's books show its sales or turnover and its
profits. The books of the Steel Corporation as a holding company do
not show this data contained in the books of the subsidiary com-
panies, but merely show its own operations, to wit, its income in the
shape of dividends upon the stocks of the subsidiary companies and
interest upon the bonds of the Carnegie Co., together with certain
other miscellaneous income, and its outgo for interest on its bonds,
dividends on its stock, administration, and other charges. These
summaries are prepared upon separate sheets from the figures com-
piled from the books of the various subsidiary companies and the
Steel Corporation ; or^ as it is explained above, " cover a cumulation
according to the respective groups of the profit and loss figures shown
by the various subsidiary companies' statements of general profit and
loss, etc." These summary sheets of the operations of the subsidiary
companies are combined with the results shown on the books of the
holding company in the form shown in the annual reports, substi-
tuting the capital stock and bonded indebtedness of the United States
Steel Corporation for the capital stock and bonded indebtedness of
the various subsidiary companies and property account to balance.
As a result of my examination of the books, papers, and documents
of the United States Steel Corporation, submitted to me, I have
prepared the following statements of account or Exhibits Nos. 1 to
27, to wit:
And here is the book containing those exhibits. I will identify
them in the report as I go on.
I may explain that under the form of receipt that I signed, which
you will all remember in my letter of December 4 was explained, I
could not particularize or specify any company. So in making up
these statements I grouped them.
The Chairman. These papers were furnished only upon condition
that you would not particularize?
3608 UNITED STATES STEEL COEPORATION.
Mr. MacRae. Yes; or specify. So I grouped them into manufac-
turing companies, coal and coke companies, iron mining companieSj
transportation companies, and miscellaneous companies, which for
the purpose of the report I think is all right, and will still fulfill the
obligation of the receipt I signed.
Mr. Eeed. Of course the restriction was withdrawn
Mr. MacEae. I had this finished before the restriction was with-
drawn.
Exhibit 1 is a statement made of all the companies for the year
1902, divided in that manner. It shows the gross sales and earnings,
the operating charges, the net operating charges, the total operating
charges, the total income before interest charges, total earnings less
bond sinking fundj depreciation, net earnings before deducting bonus
funds, and net earnings.
The exhibit will speak for itself, if the gentlemen will examine it.
Exhibit No. 2 is a similar statement for the year 1903.
Exhibit No. 3 is a similar statement for the year 1904.
Exhibit No. 4 is a similar statement for the year 1905.
Exhibit No. 5 is a similar statement for the year 1906.
Exhibit No. 6 is a similar statement for the year 1907.
Exhibit No. 7 is a similar statement for the year 1908.
Exhibit No. 8 is a similar statement for the year 1909.
And Exhibit No. 9 is a similar statement for the year 1910.
In other words, one statement is the same as another, except that
each covers a separate year, being divided into groups, as I say, and
showing the operations of the company practically in the same man-
ner in which they are in the annual report, except as to splitting up
between transportation, coal and coke, iron mining, manufacturing,
and miscellaneous companies.
Mr. Young. As I understood you, you say that the final result as
to the earnings agrees with their published report.
Mr. MacRab. No; the final net result, according to the group,
agrees with the annual report.
In my report here I have made certain adjustments which increase
those net earnings. I will come to that later.
Exhibit No. 10 is a summary of the general profit and loss account
for the nine years ended December 31, 1910, for the manufacturing
companies.
In other words, after this step was taken we took the manufactur-
ing companies out, the coal and coke companies out, the water com-
])anies out, and put them together so as to show the manufacturing
companies for the whole nine years, the coal and coke companies for
nine years, the iron-mining companies for nine years, the transporta-
tion companies for nine years, and the miscellaneous companies for
nine years, taking in exhibits numbered from 10 to 14, inclusive.
UNITED STATES STEEL, COKPOBATION. 3609
Exhibit No. 15 covers the United States Steel Corporation and the
Federal Steel Co.
Exhibit No. 16 is a statement of all of the companies combined,
taking one grand total, which gives you the general result for the
nine years, with each group by itself.
Exhibit No. lY is a detailed summary of depreciation, .extinguish-
ments, and replacement funds, and so forth, for the nine years ended
December 31, 1910. That is a compilation on one sheet of paper,
showing all the money they spent in that manner.
Exhibit No. 18 is a statement of the United States Steel Cor-
poration and the Federal Steel Co., general profit and loss account,
from April 1, 1901, to December 31, 1910. That is a statement of
the income of the Steel Corporation as a holding company and its
expenses, its dividends, and interest on its bonds, which was taken
from the books of the United States Steel Corporation as a holding
company and not from sheets of paper.
Exhibit No. 19 is a summary of the surplus accounts of the United
States Steel Corporation and its subsidiary companies from April
1, 1901, to December 31, 1910 — a reconciliation account.
Exhibit No. 20 is a consolidated general balance sheet as of Decem-
ber 31, 1910.
Exhibit No. 21 is a surplus account of the United States Steel Cor-
poration and its subsidiary companies, April 1, 1901, to December
31, 1910.
Exhibit No. 22 is a surplus account of the United States Steel Cor-
poration and its subsidiary companies from April 1, 1901, to Decem-
ber 31, 1910 — a summary. ,
Exhibit No. 23 is the property account from April 1, 1901, to De-
cember 31, 1910.
Exhibit No. 24 shows the ordinary expenditures for maintenance
and repairs for nine years ended December 31, 1910.
Exhibit No. 25 shows the adjusted net earnings from April 1, 1901,
to December 31, 1910.
Exhibit No. 26 shows, or is a statement showing, the disposition
of adjusted net earning from April 1, 1901, to December 31, 1910.
Exhibit No. 27 is a comparison of securities issued by the United
States Steel Corporation in 1901 with the amounts of securities of
constituent concerns and cash acquired therefor.
The Chairman. Right there I want to ask a question. You spoke
of interchange of securities, the securities of these various companies
for the securities of the United States Steel Corporation.
Mr. MacRae. Yes, sir.
The Chairman. What became of the securities of those companies ?
Mr. MacEae. The United States Steel Corporation property con-
sists of the stocks of the subsidiary companies that they own, plus
3610 UNITED STATES STEEL COEPOKATION.
the bonds of the Carnegie Co., and my understanding is they are
placed with the United States Trust Co. as trustee, and they have
those stocks and those bonds.
Mr. Eeed. That is correct.
The Chairman. They are the basis upon which these new stocks
and bonds
Mr. MacEae (interrupting). Yes; that is the basis for which the
Steel Corporation preferred and common stocks and bonds are issued
and the $25,000,000 cash.
This table is practically furnished by the Steel Corporation to me.
I had it, but it had already been prepared ; so I have the same table
Mr. Knox Smith has.
Form of accounts. — The summary general profit and loss accounts
of all companies for the several years, 1902 to 1910, inclusive, Ex-
hibits 1 to 9, is constant, showing the total transactions of all com-
panies for each year respectively, grouped as to the transactions of:
(a) Manufacturing companies, including the American Bridge Co.
of New Jersey.
(&) Coal and coke companies.
(c) Iron-mining companies.
{d) Transportation companies.
(e) Miscellaneous companies.
(/) United States Steel Corporation and Federal Steel Co. (as
holding companies).
The figures contained in these groups; are recapitulated under each
head for the nine years, 1902 to 1910, in Exhibits 10 to 15, inclusive,
which figures are again summarized in one grand total of all com-
panies combined for the nine years in Exhibit No. 16.
Column 1 of Exhibit 16 shows the grand net total of the aggregate
transactions of all the companies for the nine years ended December
31, 1910, after giving effect to deductions for the " Elimination of
inter-company interests and adjustments of other accounts" in
column 2.
Columns 3, 4, 5, 6, 7, and 8 show the grand gross totals of the aggre-
gate transactions of all companies for the nine years ended Decem-
ber 31, 1910, for the groups named before taking into account inter-
company adjustments.
It is impossible for me to allocate the inter-company adjustments
between the groups named for all the nine years, and it is stated that
the corporation can not supply the information prior to the year 1905.
The total gross sales and earnings of all companies combined for
the nine years ended December 31, 1910, amounted to $5,424,631,-
046.14, of 'which the sales to outside customers amounted to $3,569,-
629,995.97, and the sales to subsidiary companies amounted to $1,418^
;^^^wj,j£2^^|jaaj|^
UNITED STATES STEEL COBPOEATTON. 3611
988,132.78 (the balance being earnings of transportation and mis-
cellaneous companies, etc.) ; and the net earnings for the same period,
as shown by the corporation, amounted to $905,039,607.77 (Ex-
hibit 16).
The net operating charges for this period, or, in other words, the
manufacturing and producing cost of products sold, exclusive of ex-
tinguishment funds and depreciations and replacement funds
charged through operating costs, amoimted for the nine years to
$4,087,667,271.90, in which amount the corporation has included
charges for ordinary maintenance and repairs amounting to $252,-
178,582.34, which amount is shown in detail in Exhibit 24, submitted
herewith.
Other charges against net earnings, as shown in column 1 of Ex-
hibit 16, are self-explanatory under the headings shown, to wit:
"Administrative, selling and general expenses;" "taxes;" "sundry
manufacturing and operating gains and losses ;" " interest charges,
etc."
It must be noted that the corporation, in addition to the item
$252,178,582.34 charged for ordinary maintenance and repairs, has
set aside during the nine years for depreciation, replacement funds,
etc., the sum of $211,613,963.17, a detailed summary of which is shown
in Exhibit 17.
The United States Steel Corporation is a holding company re-
ceiving its revenues from dividends on the capital stock of its sub-
sidiary companies owned by it, and, in the case of the Carnegie Co.,
interest received on the collateral trust bonds owned by it, together
with certain other miscellaneous income. The details of this income
are shown in the general profit and loss account of the United States
Steel Corporation, including the Federal Steel Co., on the credit side
of Exhibit 18. The charges against this revenue are also detailed in
Exhibit 18. This general profit and loss account from April 1, 1901,
to December 31, 1910 — nine years and nine months — has been pre-
pared directly from the books of the corporation and not from the
summaries referred to above. It will be seen from this account that
out of the total dividends received by the United States Steel Cor-
poration from its subsidiary companies, plus the interest on the
Carnegie bonds, making a total of $753,124,386.53 for the period of
nine years and nine months, the income from the Carnegie Co. in
dividends and bond interest amounted to $305,239,537.49, or about
40 per cent of the total. The American Bridge Co. paid the holding
company dividends on its preferred stock during this period to the
amount of $19,715,577.50, or 2.6 per cent of the total.
A condensed statement of the dividends paid by the subsidiary com-
panies to the United States Steel Corporation and the interest paid
3612 UNITED STATES STEEL COBPOBATION.
by the Carnegie Co. on its collateral trust bonds from April 1, 1901,
to April 1, 1910, is as follows :
The Carnegie Co $227,280,000.00
Federal Steel Co., common 114,816,182.00
Federal Steel Co., preferred 31,157,128.50
National Tube Co., common 29,783,905.50
National Tube Co., preferred 27,299,737.60
American Steel & Wire Co. of New Jersey, common 51, 110, 460. 25
American Steel & Wire Co. of New Jersey, preferred 27, 299, 158. 25
National Steel Co., common 6,400,000.00
National Steel Co., preferred 3,779,153.00
American Tin Plate Co., common 7,419,690.00
American Tin Plate Co., preferred-, 3,634,372.00
American Sheet Steel Co., common 3,184,948.00
American Sheet Steel Co., preferred 5,573,568.00
American Sheet & Tin Plate Co., common 25,540,833.00
American Sheet & Tin Plate Co., preferred 12,004,804.00
American Steel Hoop Co., common 1,330,000.00
American Steel Hoop Co., preferred 2,041,497.61
American Bridge Co., preferred , 19,715,577.50
Oliver Iron Mining Co 2,400,000.00
Lake Superior Consolidated Iron Mining Co 66,689,969.03
Shelby Steel Tube Co., preferred 2,224,995.00
Pittsburgh Steamship Co 243,870.00
Clairton Steel Co 4,235,000.00
675, 164, 849. 04
Interest on the Carnegie Co., collateral trust bonds 77,959,537.49
753, 124, 386. 53
APRIL 1 TO DECEMBER 31, 1901.
The account submitted herewith, so far as Exhibits 1 to 16 are
concerned, do not include any detailed statements of the operations
of the corporation for the period nine months from April 1 to De-
cember 31, 1901. It is stated that detailed information of the opera-
tions for this period before arriving at net earnings can not be
produced owing to the fact that actual figures are not available. I
have therefore included figures for 1901 (nine months), beginning
with net earnings amounting to $74,960,704.21. These net earnings,
for the purpose of preparing reconciliation of the accounts, appear
for the first time in the " Surplus account of the United States Steel
Corporation and its subsidiary companies, Exhibit 20 ; " whereas
Exhibit 16 shows net earnings from January 1, 1902, to December
31, 1910, of $905,039,607.77. The net earnings for the nine months
ending December 31, 1901, added thereto, make the total net earn-
ings for the period of nine years and nine months $980,000,311.98,
and summary surplus account. Exhibit 20 shows the undivided
balance to the credit of surplus at December 31, 1910, of $164,143,-
157.99, which amount I have verified and found to be correct.
UNITED STATES STEEL COEPOEATIOlSr. 3613
The total net earnings for the entire period from April 1, 1901, to
December 31, 1910 (nine years and nine months), as shown by the
United States Steel Corporation, amount to $980,000,311.98. In-
cluded in the operating charges, before arriving at net earnings, the
corporation has figured consistently each year certain amounts, which
in my opinion should not have been charged against net earnings
and which items I have restored to net earnings for the purpose
of these accounts. In other words, I have adjusted the net earnings
as shown by the corporation from $980,000,311.98 to $1,109,146,093.49.
Mr. Gardner. How does that correspond with the difference that
Herbert Knox Smith added?
Mr. MaoEae. I have added $15,401,517.45 on subsidiary company
bonds that Mr. Smith did not add.
Mr. Gardner. I meant in amount.
Mr. MacRae. Mine is about $9,000,000 more than his.
Mr. Gardner. He had about $120,000,000.
Mr. MaoRae. I have exceeded him. I have added $15,401,517.45 of
subsidiary company bonds that he left out, and I have added the
employees' bonus funds, amounting to $24,000,000, and I have added
$7,667,059.39 that was charged up to construction, and against that he
has deducted excessive valuation of properties and I have not
touched that; at all because I did not revalue the property. The net
difference is about $9,000,000 between him and me.
Mr. Reed. Mr. Smith's estimate of that period is reduced by his
deducting those items to $1,100,350,857.
Mr. MacRae. $8,000,000 difference made up in the manner that I
have just described.
The amounts restored to net earnings are shown in detail for
each year in Exhibit 25. These include sinking fund on bonds of sub-
sidiary companies, the locked up inter-company profits in invento-
ries, special depreciation, admittedly charged to construction; em-
ployees' bonus funds and special compensations, account preferred
stock subscriptions, which have been treated as dividends from
earnings and not in the nature of additional wages to employees;
and lastly interest on bonds, mortgages, and purchase money obliga-
tions of subsidiary companies.
Exhibit 26 has been prepared for the purpose of showing the
disposition made by the United States Steel Corporation of these
adjusted net earnings covering the period of nine years and nine
months ended December 31, 1910.
During the nine years from January 1, 1902, to December 31, 1910,
the production of the subsidiary companies of the corporation in
rolled and other finished steel amounted to 79,267,363 tons and the ad-
justed net earnings for the same period, nine years, amounted to
$1,029,685,389.28 or an equivalent of approximately $13 per ton. In
3614 UNITED STATES STEEL COKPOKATION.
order that an idea may be had of the net earnings in dollars per ton
of the several operating groups of the corporation, I have calculated
these figures and I find the approximate net earnings of $13 per ton
of finished product to have been earned as follows :
Per
cent.
Per
ton.
Amount earned by manufacturing companies, approximately
Amount earned per ton by coal and coke companies, approximately...
Amount earned per ton b y iron mining companies , approximately . . . .
Amount earned per ton by transportation companies, approximately..
Amount earned per ton by miscellaneous companies, approximately. .
61.63
6.42
16.29
13.92
2.74
18.01
.70
2.12
1.81
.36
100.00
13.00
Taking the adjusted net earnings for the nine years ended Decem-
ber 31, 1910, at $1,029,685,389.28, it will be found that the percentage
of the net earnings to sales to outside customers for this period
amounts approximately to 29 per cent. Twenty-nine per cent on
selling price is equivalent to 40 per cent on cost.
Mr. Young. May I ask a question right there?
Mr. MacRae. Yes, sir.
Mr. Young. You have given the tonnage of rolled and other
finished products. Does the Steel Corporation sell any of its product
in the cruder form?
Mr. MacRae. They sell billets to some people, I believe, but they
do not sell pig iron ; in fact, they buy pig iron themselves, and their
operations, so far as I have been able to understand, is to produce
only what they sell, and my understanding of the operations of the
Steel Corporation is that they mine the ore and transport it and put
it in the blast furnace and make pig iron, and it goes into various
other higher forms of finished steel, resulting ultimately in the sale
of roughly 10,000,000 tons of finished products per annum to the
public, and that is the result of all their operations, and that is the
final thing.
Mr. Young. You did not make any investigation as to what the
tonnage was of these crude products that they actually sold ?
Mr. MacRae. No. The annual reports of the company show in
detail a lot of things in relation to that, and I simply took the final
figures as to the finished products. The finished material sold to the
outside public I used as the basis, and that is practically what they
do. I think Mr. Andrew Carnegie practically did the same thing
I did, although I had this calculation made before I had the pleasure
of reading his testimony before the Ways and Means Committee.
Mr. Sterling. You mean they produce just the pig iron they use ?
Mr. MacRae. They do not sell pig iron. They use their own pig
iron. They not alone consume most all of what they make, but they
buy in the outside market.
UNITED STATES STEEL COEPORATION. 3615
Mr. Eenest. Mr. Gary testified they did not sell billets, in volume
5, page 225, of the testimony. But I suppose he excepted certain con-
tracts, like those with the Crucible and Oliver concerns.
Mr. Keed. You do not mean the corporation's annual reports have
been misleading in leaving out or making these deductions from earn-
ings which you do not make?
Mr. MacKae. Oh, no ; I do not say they are misleading. The net
earnings are all right, but when we are trying to arrive at what a
manufacturing company makes we are bound to put by the interest
on bonds the same as borrowed money, because if they had capital
enough they would not have. to borrow money, either on bonds or
anything else ; that is a principle Mr. Filbert will agree with.
Mr. FiLBEUT. But the annual reports specifically say these amounts
deducted
Mr. MacKae (interrupting). Oh, there is no attempt to deceive.
I do not believe anybody expressed such a thought — that this state-
ment has any such intention in that matter.
The Chairman. Has the Steel Corporation any set of books show-
ing that
Mr. MacEae. They have abstracts from the books. Each sub-
company keeps its own set of books, and at the end of the year or
other specific times these companies send their accounts in and a
statement is made up from all those accounts, putting them all
together, and they are made into one statement. You could not go
and say " Give me this specific information from the books of the
Steel Corporation," because they have to get it in detail from these
subcompanies.
Mr. Gakdnek. The prime purpose of this division in your report
is to show what their actual earnings are ?
Mr. MacEae. Yes.
Mr. Gardner. In contradistinction to their calculation of their
earnings, and that amounts to a difference of $129,000,000 ?
Mr. MacKae, Yes.
Mr. Gardner. Mr. Herbert Knox Smith estimated the amount
that ought to be added to their earnings, to show the true earnings,
to be $120,000,000?
Mr. MacEae. Yes.
Mr. Gardner. If there is any way it can be arranged, Mr. Chair-
man, I would like to have a joint debate here to get as much as we
can through our minds as to whether Mr. MacEae's and Mr. Herbert
Knox Smith's methods of calculation are correct, or whether the
Steel Corporation's methods are correct. I can not suppose that
they adopted that method of bookkeeping to deceive the public.
Mr. MacEae. Oh, no.
Mr. Gardner. There must be a difference of principle involved
as to what is and what is not true earnings.
3616 UNITED STATES STEEL COKPOBATION.
ilr. YotnsTG. For instance, you say the bonuses amount to how
many million dollars?
Mr. MacEae. $24,000,000.
]VIr. Yotmo. And the Steel Corporation treats that as part of its
wage account?
Mr. MacRae. And Herbert Kjiox Smith says, while he is in doubt
about it, he will let it go, and I treated it as a dividend because every
employee does not get part of that bonus ; and if you wanted to com-
pare with another steel corporation, you could not do it; you could
not compare with a concern that did not have that bonus fund. You
could not make any comparison. Mr. Smith, in his written text,
says he has doubts as to whether it is proper to charge it against
earnings, but inasmuch as it was there he left it in, and I took it out.
Mr. Young. That is $24,000,000?
Mr. MacRae. $24,000,000; yes.
Mr. Gardner. What are the other big items ?
Mr. MacRae. I have restored interest on bonds of subsidiary com-
panies amounting to $15,401,517.45.
Mr. Young. Is that interest paid by these subsidiaries?
Mr. MacRae. Yes; that is interest on bonds of the subsidiary
companies for 10 years.
Mr. Reed. That is bonds held by outsiders.
Mr. MacRae. Mr. Smith did not add that.
Mr. Filbert. Yes, he did.
Mr. MacRae. No ; he added $65,000,000.
Mr. Gardner. Does the Steel Corporation dispute the accuracy
of that?
Mr. Reed. That is interest that the subsidiary companies pay to
outsiders who own bonds of those subsidiary companies. We think
it is just as much a charge against earnings as interest on notes
which the bank may hold.
Mr. Gardner. What have you to say to that, Mr. MacRae?
Mr. Reed. It is simply a difference of opinion between ourselves
and Mr. MacRae.
Mr. MacRae. I do not believe any accountant will dispute
Mr. Filbert (interrupting). Our report shows it both ways.
Mr. MacRae. We have an item of interest on bonds, mortgages,
and purchase-money obligations of subsidiary companies, $65,443,-
782.06. I have restored it to earnings, and Smith agrees with me
in that principle, and he restores $66,000,000.
Mr. Young. What is the difference between that item and this
$15,000,000 item?
]\Ir. MacRae. In addition to that, I have restored $15,000,000 that
comes in under another head, which Smith has not restored.
Mr. Young. I understood both of those are interest on bonds of
the subsidiary companies.
„^y^.i.^^ >j.La.±j!»3 JiJiiiiiLi CJORPOBATIOK. 3617
Mr. MacEae. Let us call it interest on bonds. It is not a proper
charge
Mr. Young (interposing). I am not discussing whether it ought
to be a charge or not; I want to find out just what it is. Are there
two items of interest on bonds ?
Mr. MacRae. There are two items. I think I can explain it in
this way. The $15,000,000 item is paid by the subcompanies them-
selves, and comes in their accounts.
Mr. Filbert. To the corporation?
Mr. MaoEae. No; to outsiders. It is there because I could not
have put it there if it was not there. In addition to that, the
$65,000,000
Mr. Young (interposing). What is the $65,000,000?
Mr. MacEae. Interest on bonds and mortgages and purchase-
money obligations.
Mr. Young. To whom is that paid?
Mr. MacEae. Outsiders or whoever hold these bonds and mort-
gages. There is $80,000,000. in that way.
Mr. Gardner. Who is the gentleman at your right, Mr. Eeed?
Mr. Eeed. Mr. Filbert, comptroller of the Steel Corporation.
Mr. Gardner. What have you to say as to that, Mr. Filbert.
Mr. Filbert. I do not know what his $15,000,000 is. I can not
believe it is right. Mr. Herbert Knox Smith's figures are right,
because we gave them to him and I know they are right.
Mr. MacEae. And I made these figures up myself, and I know
they are right.
The Chairman. I think you had better be sworn, Mr. Filbert.
(Thereupon the chairman administered the oath to Mr. William J.
Filbert, comptroller of the United States Steel Corporation.)
Mr. Gardner. I think that briefly we ought to pick out the big
items in this $129,000,000 of difference, leaving out the small ones
and taking only the larger ones, and have Mr. Filbert state why he
thinks they ought not to be included in the earnings, and then have
Mr. MacEae state why he thinks they should be included.
Mr. Young. Would it not be more orderly to let Mr. MacEae get
through ?
Mr. MacEae. I should like to present this report ; yes.
Mr. Young. We will get in great confusion if we let both of these
men talk together. Mr. Filbert is listening to Mr. MacRae.
Mr. MacEae. Mr. Smith has the $65,000,000, but not the $15,-
000,000.
Mr. Young. What is the distinction between the two ?
Mr. MacEae. The only distinction I know of is that they split it
themselves in their reports.
31572— No. 53, pt. 1—12^ 2
3618 UNITED STATES STi:iIir-CUJS^T7in^nrr:7^^.
Mr. Young. According to your idea, it should not be split?
Mr. MacRae. My idea of it is that some of these companies pay
this money out in their accounts before they get to the Steel Cor-
poration.
Mr. Filbert. The only thing I can think of is that it may be
what may be termed intercompany interest paid by one company to
another. That being the case, Mr. MacEae ought not to add it back
unless he takes it out where the other companies put it in, when he is
making a combined statement. I do not know what his statement is.
Mr. MacRae. We agree on the $65,000,000.
Mr. Young. That is interest on obligations of the subsidiary
companies ?
Mr. MacRae. Yes ; and also it should be restored in a compilation
of this kind. It is interest on bonds, mortgages, and purchase-money
obligations of subsidiary companies.
Mr. Young, That is, interest they pay to the owners of these
bonds ?
Mr. MacRae. Yes. Mr. Smith has that in his report, too.
Mr. Gardner. Mr. Filbert says these figures are correct themselves,
but does he also say they ought to be restored to the earnings?
Mr. Filbert. In order to ascertain the amount of profit on the
entire investment; yes, sir.
Mr. Gardner. That is, that $66,000,000 out of the $129,000,000
which is now out of dispute.
Mr. Reed. That is not what Mr. Filbert means.
Mr. Filbert. I concede that $65,000,000 should be added back to
the item of net earnings, as specified and set forth in the corporation's
annual report, in order to arrive at a figure which will represent
profit earned upon the entire investment in the property as repre-
sented both by the capital stock and the bonds of the subsidiary com-
panies; in other words, the entire capitalization of the organization.
Mr. Young. But this does not belong to the Steel Corporation.
You have to use these bonds as part of the capital.
Mr. Filbert. You certainly have.
Mr. Bartlett. The bonds as part of the capital ?
Mr. Filbert. You add those back and add the total with the total
amount of the stocks and bonds of the Steel Corporation per se.
Mr. Bartlett. The Steel Corporation is eventually liable for those
obligations ?
Mr. Reed. The stock they hold is postponed, of course, to these
liens which the subsidiary companies have issued.
Mr. Bartlett. In the organization of the steel company, did they
not assume the liability of these bonds of the subsidiary companies?
Mr. Reed. No, sir.
UJ.MJ.J1JJ i3j.ATJ!iS STJiELi COErOEATION. 3619
Mr. YoxjNG. That is the first charge on the property before the
Steel Corporation would have anything.
Mr. Gardner. Let me understand if this is your contention
Mr. Eeed (interrupting). The stocks which the Steel Corporatiom
own represent the equity after these outstanding bonds. Mr. Car-
negie owns bonds of the Steel Corporation which are secured by
pledge of our stocks or our equity, in other words.
The Chairman. In the event that the bonds of these subsidiary
companies were foreclosed, and the subsidiary companies' property
did not pay more than those bonds, there would be nothing left t&
the Steel Corporation?
Mr. Eeed. Except in the case of the Carnegie Co. where the sted
company owns all the bonds.
Mr. Gardner. Let me see if I can state your contention correctly,
Mr. Filbert: That the Steel Corporation has certain stocks and
bonds which represent the total value of their property: that out-
siders have certain stocks and bonds which are not included in the
assets of the Steel Corporation as estimated by Mr. Herbert Knox
Smith ; that if you are to add income on those stocks and "bonds of
outsiders to the income on the stocks and bonds of the United
States Steel Corporation, then in calculating your percentage of
profit you must also add the stocks and bonds of the outsiders to the
stocks and bonds held by the United States Steel Corporation ?
Mr. Filbert. That is quite correct, with one exception; you men-
tion that Mr. Smith, in estimating the value of the property, esti-
mated the values exclusive of that represented by the bonds of the
companies held by outsiders. He included in his estimate of value
the amount of value so represented by those outside bonds. His
value was the gross value, the value of the- property represented by
both the stocks owned by the Steel Corporation and the bonds held
by outsiders.
Mr. Gardner. But did he, in estimating his percentages, calculate
not only the stocks and bonds — did he add to the stocks and bonds
of the Steel Corporation the value of the stocks and bonds which
were not held by the Steel Corporation?
Mr. Filbert. He did ; although if you will allow me, Mr. Gardner,
he did not take the par of the stocks and bonds held by the Steel
Corporation as the basis of value. He took his own estimate of the
value of the physical properties.
Mr. Gardner. But did he add that value of the physical property t
Mr. Filbert. Yes, sir; his figure comprehended the value repre-
sented by the bonds of underlying companies which are held by the
public.
Mr. Gardner. Then, why is not his method and Mr. MacEae's a
true way of arriving at what the true income was from the total
property ?
3620 UNITED STATES STEEL. COEPORA.TION.
Mr. Filbert. I think that is exactly in accordance with my state-
ment, that it was, and that I granted the accuracy of Mr. MacKae's
adding back the $65,000,000, and also Mr. Smith doing it.
Mr. Gardner. That is the soundness of their reasoning?
Mr. Filbert. Both are correct with respect to that item.
Mr. Young. That would be dependent on their also adding the
value of the bonds?
Mr. Filbert. Which they do. Mr. Smith does.
Mr. MacRae. I did not revalue the property like he did.
Mr. Reed. You have not made up a new capitalization?
Mr. MacRae. No.
Mr. McGillicuddt. Mr. Chairman, will we not get at this matter
better if we have this report presented to the committee and printed,
so the committee may look it all over, so the attorneys on the other
side may look it all over, and then let us have Mr. MacRae come in
here and, having digested this whole matter, let us go over it to-
gether then. Would we not get at it more intelligently and directly
than we can in this way?
The Chairman. Mr. MacRae, will you be good enough to come
back here and appear before the committee, to answer such questions
as we may have to propound, after this report is printed and exam-
ined by the members of the committee ?
Mr. MacRae. I shall be very glad to do that at any time, Mr.
Chairman.
Mr. Reed. It is a little difficult to expect Mr. Filbert to criticize a,
report of this length that he has not heard read or seen.
Mr. MacRae. I do not think there will be any point of difference
between Mr. Filbert and myself on this report, except possibly as to
that item of $16,000,000 and the employees' bonus fund, which I have
restored. It is a matter of opinion.
The Chairman. Do you make that as a motion, Mr. McGillicuddyf
Mr. McGillicuddt. I will ; yes, sir.
Mr. MacRae. Mr. Filbert and I agree on this whole thing, with
the exception of the $15,000,000.
Mr. Filbert. And I do not know what that is. The table Mr.
Smith has was made up by me, however.
Mr. MacRae. The table Mr. Smith has was made up by Mr. Fil-
bert, and this table I made up myself.
The Chairman. The only thing I care to say is this : These discus-
sions are going into the record and they are to be read and should be
right. I believe we will get a more accurate record of these differ-
ences between the comptroller of the Steel Corporation and the wit-
ness and Mr. Herbert Knox Smith — and I think it would be a good
idea to have Mr. Smith appear before the committee, too — if it is
UNITED STATES STEEL CORPORATION. 3621
done after the Steel Corporation accountant has had an opportunity
to examine Mr. MacBae's report.
Mr. Eeed. The differences are not differences of fact. They are
differences of opinion, and when once the witnesses have agreed on
the statements, as they now do to a very great extent, then they can
explain the reason for the differences of opinion.
Mr. Gabdnee. They can frame the issue, then.
Mr. Eeed. Yes, sir.
The Chairman. It will save the time of the committee, and if
there is no objection it will be so ordered.
The stenographer will incorporate in the record the remainder of
Mr. MacRae's statement of transmittal of these reports and exhibits.
The committee will now stand adjourned subject to call of the
chairman.
Thereupon, at 12.15 o'clock p. m., the committee adjourned sub-
ject to call of the chairman.
The remainder of the statement of transmittal by Mr. MacEae,
referred to above- by the chairman, is in the words and figures follow-
ing, to wit :
New York, February IB, 1912.
Hon. Augustus O. Stanley,
Chairman Specie^, Gom/mittee on Investigation of
United States Steel Corporation, Washington, D. C.
Sir : I have the honor to transmit herewith the results of my in-
vestigation to this date of accounts, documents, and papers sub-
mitted to me by the United States Steel Corporation, in accordance
with the authority vested in me under the resolution adopted by
the committee.
This report is in three sections :
Section 1. The acounts dealing with the earnings of the corpora-
tion since its formation.
Section 2. Exhibits submitted by the United States Steel Cor-
poration in response to requests made by me ; extracts from the min-
utes of the United States Steel Corporation and subsidiary com-
panies; extracts from previous reports made by me to the com-
mittee; and
Section 3. A summary of all the evidence extracted from the min-
ute books and exhibits, etc., and from the testimony taken by the
committee, up to the completion of the said summary, with which
is combined an index in three parts showing (1) the subjects in-
cluded in the inquiry; (2) the companies and firms; and (3) the indi-
viduals investigated and referred to in the testimony, etc., together
Avith a brief of such evidence.
3622 united states steel coepoeation.
Section 1. — Accounts.
On or about September 1, 1911, the United States Steel Corpora-
tion submitted to me printed copies of the published reports of the
corporation for the years 1902 to 1910, inclusive ; also the preliminary
report to the stockholders for the period from April 1, 1901, to De-
cember 31, 1901 (nine months) , and the profit and loss statements of
the subsidiary companies of the United States Steel Corporation,
together with a general profit and loss statement of the United States
Steel Corporation and the Federal Steel Co., as holding com-
panies, for nine years, 1902 to 1910, inclusive. These statements
were accepted by me and I am satisfied correctly show in a sum-
mary form the transactions of the several companies up to the point
of net earnings.
It would naturally be assumed that the summary income accounts
for each year, 1902 to 1910, inclusive, compiled from the several
subsidiary companies' profit and loss statements, would result in a
general profit and loss or income account of the United States Steel
Corporation and its subsidiary companies for the period under exam-
ination.
This was the task undertaken from the data furnished me, and re-
sulted in the compilation of summary yearly profit and loss accounts,
which statements, however, did not agree with the annual published
reports of the United States Steel Corporation except as to total net
earnings, all other items, to wit, Total Gross Sales and Earnings,
Administrative and General Expenses, Other Income, Interest
Charges, Gains and Losses, having been adjusted internally by the
United States Steel Corporation before arriving at the figures shown
in the published reports.
On or about December 1, 1911, I took up with the officials of the
United States Steel Corporation the question of these apparent large
discrepancies between the figures compiled by me and those sub-
mitted by the corporation in their annual reports ; and, on December
12, 1911, I received from the corporation the summaries of general
profit and loss accounts of all the companies for the period from
January 1, 190-2, to Decenil^cr 31, 1910 (nine years), showing the
intercompany adjustments, which summaries, condensed and rear-
ranged, are submitted herewith. (Exhibits Nos. 1 to 9, inclusive.)
With these summaries was handed to me the following explanatory
memorandum, which I quote in full :
These summaries cover a cumulation, according to the respective groups, of
the profit and loss figures shown by the various subsidiary companies' state-
ments of general profit and loss. They also talie up the eliminations and adjust-
ments made for the purpose of reducing the final aggregate results on the
basis of a consolidated unit proposition so far as the same is possible and prac-
UNITED STATES STEEL COEPOEATION. 3623
ticable. It is on this last-named basis that the figures shown in the annual
report in the table of general profit and loss are stated. It will be noticed that
the final aggregates, so far as gross figures are concerned, as shown in the
attached summaries differ in some particulars from similar aggregates printed
in the annual reports for the respective years, although in every case the final
net earnings as shown by these statements conform to those printed In the
annual report, ♦ * *.
The differences in the aggregate of gross figures, as above referred to, result
from a different grouping or classifying of items of receipts and expenditures
as worked into these final summaries in comparison with the manner originally
talien up in the preparation of the summaries which were printed in the annual
reports. The greater portion of the differences is attributable to the fact that
in reabstracting the statistics in the compilation of these summaries (all of
which work was taken up and done at some considerable time after the annual
report statement was gotten out), there was adhered to certain well-defined
regulations and principles of classification which seemed to best illustrate the
operations. As before stated, the net earnings agree with the final net as
reported in the annual reports, and this is the essential feature. These sum-
maries represent our best and most careful efforts to classify all items uni-
formly in the several companies, in the different years and in accordance with
the facts. The result as to net earnings agrees, and that is the test to be
applied.
In order to explain the sources of the data presented in the sum-
maries above referred to the following explanation should be made :
The subsidiary companies keep their own sets of books just as if they
were not controlled by the Steel Corporation as a holding company.
Each subsidiary company's books show its sales, or turnover, and
its profits. The books of the steel corporation, as a holding company,
do not show this data contained in the books of the subsidiary com-
panies, but merely show its own operations, to wit, its income in the
shape of dividends upon the stocks of the subsidiary companies and
interest upon the bonds of the Carnegie Co., together with certain
other miscellaneous income, and its outgo for interest on its bonds,
dividends on its stock, administration, and other charges. These
summaries are prepared upon separate sheets from the figures com-
piled from the books of the various subsidiary companies and the
steel corporation, or, as it is explained above, "cover a cimiulation
according to the respective groups of the profit and loss figures
shown by the various subsidiary companies' statements of general
profit and loss, etc." These summary sheets of the operations of the
subsidiary companies are combined with the results shown on the
books of the holding company in the form shown in the annual re-
ports, substituting the capital stock and bonded indebtedness of the
United States Steel Corporation for the capital stock and bonded
indebtedness of the various subsidiary companies and property ac-
count to balance.
As a result of my examination of the books, papers, and documents
of the United States Steel Corporation, submitted to me, I have pre-
3624 UNITED STATES STEEL CORPORATION.
pared the following statements of account or exhibits numbered 1
to 27, to wit :
Exhibit 1. Summary of general profit and loss account of all companies for the
year 1902.
Exhibit 2. Summary of general profit and loss account of all companies for the
year 1903.
Exhibit 3. Summary of general profit and loss account of all companies for the
year 1904.
Exhibit 4. Summary of general profit and loss account of all companies for the
year 1905.
Exhibit 5. Summary of general profit and loss account of all companies for the
year 1906.
Exhibit 6. Summary of general profit and loss account of all companies for the
year 1907.
Exhibit 7. Summary of general profit and loss account of all companies for the
year 1908.
Exhibit 8. Summary of general profit and loss account of all companies for the
year 1909.
Exhibit 9. Summary of general profit and loss account of all companies for the
year 1910.
Exhibit 10. Summary of general profit and loss account for the nine years ended
December 31, 1910, manufacturing companies.
Exhibit 11. Summary of general profit and loss account for the nine years ended
December 31, 1910, coal and coke companies.
Exhibit 12. Summary of general profit and loss account for the nine years ended
December 31, 1910, iron mining companies.
Exhibit 13. Summary of general profit and loss account for the nine years ended
December 31, 1910, transportation.
Exhibit 14. Summary of general profit and loss account for the nine years ended
December 31, 1910, miscellaneous.
Exhibit 15. Summary of general profit and loss account for the nine years ended
December 31, 1910, United States Steel Corporation and Federal Steel Co.
Exhibit 16. Summary of general profit and loss account for the nine years ended
December 31, 1910, all companies combined.
Exhibit 17. Detailed summary of depreciation, extinguishment, and replacement
funds, etc., for the nine years ended December 31, 1910.
Exhibit 18. United States Steel Corporation and Federal Steel Co., general
profit and loss account from April 1, 1901, to December 31, 1910.
Exhibit 19. Summary surplus account of the United States Steel Corporation
and Its subsidiary companies from April 1, 1901, to December 31, 1910, recon-
ciliation account.
Exhibit 20. Consolidated general balance sheet, December 31, 1910.
Exhibit 21. Surplus account of United States Steel Corporation and its sub-
sidiary companies, April 1, 1901, to December 31, 1910.
Exhibit 22. Surplus account of the United States Steel Corporation and Its sub-
sidiary companies, April 1, 1901, to December 31, 1910; summary.
Exhibit 23. Property account from April 1, 1901, to December 31, 1910.
Exhibit 24. Ordinary expenditures for maintenance and repairs for nine years
ended December 31, 1910.
Exhibit 25. Adjusted net earnings from April 1, 1901, to December 31, 1910.
Exhibit 26. Statement showing disposition of adjusted net earnings, April 1,
1901, to December 31, 1910.
Exhibit 27. Comparison of securities issued by United States Steel Corporation
In 1901 with amounts of securities of constituent concerns and cash acquired
therefor.
UNITED STATES STEEL COBPOBATION. 3625
FORM OF ACCOUNTS.
The summary general profit and loss accounts of all companies for
the several years — 1902 to 1910, inclusive (Exhibits 1 to 9) — is con-
stant, showing the total transactions of all companies for each year,
respectively, grouped as to the transactions of—
(a) Manufacturing companies, including the American Bridge
Co., of New Jersey.
(&) Coal and coke companies.
(c) Iron mining companies.
(d) Transportation companies.
(«) Miscellaneous companies.
(/) United Sfates Steel Corporation and Federal Steel Co. (as
holding companies).
The figures contained in these groups are recapitulated under each
head for the nine years (1902 to 1910) in Exhibits 10 to 15, inclusive,
which figures are again summarized in one grand total of all com-
panies combined for the nine years in Exhibit 16.
Column 1 of Exhibit 16 shows the grand net total of the aggre-
gate transactions of all the companies for the nine years ended De-
cember 31, 1910, after giving effect to deductions for the " elimina-
tion of intercompany interests and adjustments of other accounts"
in column 2.
Columns 3, 4, 5, 6, 7, and 8 show the grand gross totals of the ag-
gregate transactions of all companies for the nine years ended De-
cember 31, 1910, for the groups named before -taking into account
intercompany adjustments.
It is impossible for me to allocate the intercompany adjustments
between the groups named for all the nine years, and it is stated that
the corporation can not supply the information prior to the year
1905.
The total gross sales and earnings of all companies combined for
the nine years ended December 31, 1910, amounted to $5,424,631,046.14,
of which the sales to outside customers amounted to $3,569,629,995.97,
and the sales to subsidiary companies amounted to $1,418,988,132.78
(the balance being earnings of transportation and miscellaneous com-
panies, etc.), and the net earnings for the same period, as shown by
the corporation, amounted to $905,039,607.77 (Exhibit 16).
The net operating charges for this period, or, in other words, the
manufacturing and producing cost of products sold, exclusive of
extinguishment funds and depreciations and replacement funds
charged through operating costs, amounted for the nine years to
$4,087,667,271.90, in which amount the corporation has included
charges for ordinary maintenance and repairs amounting to
$252,178,582.34, which amount is shown in detail in Exhibit 24, sub-
mitted herewith.
3626 UNITED STATES STEEL COEPOEATION.
Other charges against net earnings, as shown in column 1 of Ex-
hibit 16, are self-explanatory under the headings shown, to wit;
Administrative, selling, and general expenses; taxes; siindry manu-
facturing and operating gains and losses ; interest charges, etc.
It must be noted that the corporation, in addition to the item
$252,178,582.34, charged for ordinary maintenance and repairs, has
set aside during the nine years for depreciation, replacement funds,
etc., the sum of $211,613,963.17, a detailed summary of which is
shown in Exhibit 17.
The United States Steel Corporation is a holding company receiv-
ing its revenues from dividends on the capital stock of its subsidiary
companies owned by it, and, in the case of the Carnegie Co., interest
received on the collateral trust bonds owned by it, together with cer-
tain other miscellaneous income. The details of this income are
shown in the general profit and loss account of the United States
Steel Corporation, including the Federal Steel Co., on the credit side
of Exhibit 18. The charges against this revenue are also detailed in
Exhibit 18. This general profit and loss account from April 1, 1901,
to December 31, 1910 — nine years and nine months — has been pre-
pared directly from the books of the corporation, and not from the
summaries referred to above. It will be seen from this account that
out of the total dividends received by the United States Steel Cor-
poration from its subsidiary companies plus the interest on the
Carnegie bonds, making a total of $753,124,386.53 for the period of
nine years and nine months, the income from the Carnegie Co. in
dividends and bond interest amounted to $305,239,537.49, or about 40
per cent of the total. The American Bridge Co. paid the holding
company dividends on its preferred stock during this period to the
amount of $19,715,577.50, or 2^ per cent of the total.
A condensed statement of the dividends paid by the subsidiary
companies to the United States Steel Corporation and the interest
paid by the Carnegie Co. on its collateral trust bonds from April 1,
1901 to April 1, 1910, is as follows :
The Carnegie Co $227,280,000.00
Federal Steel Co., common 114, 816, 182. 00
Federal Steel Co., preferred 31,157,128.50
National Tube Co., common 29, 783, 905. 50
National Tube Co., preferred 27,299,737.50
American Steel & Wire Co. of • New Jersey, common 51,110,460.25
American Steel & Wire Co. of New Jersey, preferred 27,299,158.25
National Steel Co., common 6, 400, 000. 00
National Steel Co., preferred . 3,779,153.00
American Tin Plate Co., commofi 7,419,690.00
American Tin Plate Co., preferred 3,634,372.00
American Sbeet Steel Co., common 3^ 184, 948. 00
American Sheet Steel Co., preferred 5, 573, 568. 00
American Sheet & Tin Plate Co., common 25, 540, 833. 00
UNITED STATES STEEI> COEPOEATION. 3627
American Sheet and Tin Plate Co., preferred $12, 004, 804. 00
American Steel Hoop Co., common 1, 330, 000. 00
American Steel Hoop Co., preferred 2, 041, 497. 51
American Bridge Co., preferred 19, 715, 577. 50
Oliver Iron Mining Co 2, 400, 000. 00
Lake Superior Consolidated Iron Mining Co 66, 689, 969. 03
Shelby Steel Tube Co., preferred 2, 224, 995. 00
Pittsburg Steamship Co 243, 870. 00
Clairton Steel Co 4, 235, 000. 00
675, 164, 849. 04
Interest on the Carnegie Co., collateral trust bonds 77, 959, 537. 49
753, 124, 386, 53
April 1 to December 31, 1901. — The account submitted herewith, so
far as Exhibits 1 to 16 are concerned, do not include any detailed
statement of the operations of the corporation for the period nine
months from April 1 to December 31, 1901. It is stated that detailed
information of the operations for this period before arriving at net
earnings can not be produced owing to the fact that actual figures are
not available. I have therefore included figures from 1901 (nine
months) beginning with net earnings amounting to' $74,960,704.21.
These net earnings, for the purpose of preparing reconciliation of
the accounts, appear for the first time in the " Surplus account of the
United States Steel Corporation and its subsidiary companies, Ex-
hibit 21," whereas Exhibit 16 shows net earnings from January 1,
1902, to December 31, 1910, of $906,039,607.77. The net earnings for
the nine months ending December 31, 1901, added thereto, make the
total net earnings for the period of nine years and nine months
$980,000,311.98, and summary surplus account. Exhibit 20 shows the
undivided balance to the credit of surplus at December 31, 1910, of
$164,143,157.99, which amount I have verified and found to be correct.
The total net earnings for the entire period from April 1, 1901, to
December 31, 1910 (nine years and- nine months), as shown by the
United States Steel Corporation amount to $980,000,311.98. In-
cluded in the operating charges before arriving at net earnings, the
corporation has figured consistently each year certain amounts, which,
in my opinion, should not have been' charged against net earnings and
which items I have restored to net earnings for the purpose of these
accounts. In other words, I have adjusted the net earnings, as shown
by the corporation, from $980,000,311.98 to $1,109,146,093.49. The
amounts restored to net earnings are shown in detail for each year in
Exhibit 25. These include interest on bonds of subsidiary companies,
the locked-up intercompany profits in inventories, special deprecia-
tion, admittedly charged to construction; employees bonus funds and
special compensations, account preferred stock subscriptions, which
have been treated as dividends from earnings and not in the nature
of additional wages to employees; and, lastly, interest on bonds,
mortgages, and purchase money obligations of subsidiary companies.
3628 UNITED STATES STEEL COEPORATION.
Exhibit " 26 " has been prepared for the purpose of showing the
disposition made by the United States Steel Corporation of these ad-
justed net earnings covering the period nine years and nine months
ended December 31, 1910.
During the nine years from January 1, 1902, to December 31, 1910,
the production of the subsidiary companies of the corporation in
rolled and other finished steel amounted to 79,267,363 tons and the
adjusted net earnings for the same period — ^nine years — amounted to
$1,029,685,389.28, or an equivalent of approximately $13 per ton. In
order that an idea may be had of the net earnings in dollars per ton
of the several operating groups of the corporation, I have calculated
these figures, and I find the approximate net earnings of $13 per ton
of finished product to have been earned as follows:
Per cent.
Per ton.
Amount earned per ton by manufacturing companies, approximately ...
61.63
S.42
16.29
13.92
2.74
18.01
70
Amount earned per ton by iron mining companies, approximately ....
2.12
Amount earned per ton by transportation companies^ approximately
1.81
Amount earned per ton by miscellaneous companies, approximately. ...
.36
100.00
13.00
Taking the adjusted net earnings for the nine years ended Decem-
ber 31, 1910, at $1,029,685,389.28 it will be found that the percentage
of the net earnings to sales to outside customers for this period
amounts approximately to 29 per cent. Twenty-nine per cent on
selling price is equivalent to 40 per cent on cost.
During the period from April 1, 1901, to December 31, 1910,
nine years and nine months, the United States Steel Cor-
poration showed an earned surplus of $139, 143, 157. 99
To this amount should be added expenditures for construc-
tion accounts, etc., which have been capitalized, amounting
for the same period to 210,494,423.55
349, 637, 581. 54
Interest on United States Steel Corporation bonds and sinking
funds 253, 068, 247. 45
Sinking funds on bonds of subsidiary companies 15, 401, 517. 45
Interest on bonds, mortgages, and purchase-money obligations
of subsidiary companies 65,443,782.06
333, 911, 546. 96
Keserve for advance mining royalties 7, 000, 000. 00
Employees' bonus funds 24,670,078.83
Dividends on United States Steel Corporation :
Preferred stock 269, 414, 628. 66
Common stock 124,512,257.50
393, 926, 886. 16
Making total adjusted net earnings, as per Exhibit 25— 1, 109, 146, 093. 49
u x^
iijai. aj.Jij.Jio OJ.J1I1U OOBPORATION. 3629
This agrees with Judge Gary's method of determining profits, as
set forth in the tariff hearings (1908, vol. 2, p. 1745) as follows:
In determining the profits since tlie company was organized, I take tlie
amount paid as interest on bonds, tlie amount paid as dividends on stock, and
the amount expended for new property, and the amount carried forward to
surplus.
Except that I have also added profit-sharing bonus funds to earnings.
In addition to the amount spent for new construction, etc., which
has been capitalized, the corporation has also charged in its accounts
against the net earnings for the period, nine years and nine months,
ended December 31, 1910, the following items :
For ordinary maintenance and repairs from Jan. 1, 1902, to
Dec. 31, 1910, nine years per Exhibit 24, actual $252, 178, 582. 34
For nine months, Jan. 1, 1901, to Dec. 31, 1901, 9 months,
estimated 14, 000, 000. 00
Total 266, 178, 582. 34
The corporation has also expended under the heading of deprecia-
tion, extinguishment, replacement fund, and bond sinking funds on
its subsidiary companies for the nine years and nine months ended
December 31, 1910, an aggregate amount of $213,192,140.78.
(Note. — I have not tried to determine or to express an opinion as
to whether the amount thus set aside for depreciation ($213,192,-
140.78) is excessive or inadequate.)
If it should be determined by competent authorities that either a
part or the whole of this amount is not a proper charge against earn-
ings, then it should be added to the adjusted earnings ($1,109,146,-
593.49), increasing the latter amount by either the whole or any part
thereof which is thought proper.
This statement is called forth by the testimony of Mr. Andrew
Carnegie before the Ways and Means Committee in the tariff hear-
ings (1908, vol. 2, p. 1871) , in which he stated :
Steel mills and furnaces do not depreciate; they can not be allowed to do
so ; they must be kept up to the highest standard, and improvements introduced
when repairs are needed. The statement above (referring to the annual report
for 1907 of the United States Steel Corporation) shows that ordinary repairs
and maintenance were deducted before profits of $160,000,000 were declared.
The mills in the future, properly maintained, as they must be, in order to run
safely and well, will be more valuable than they are to-day.
If, therefore, the amount allowed for ordinary maintenance and
repairs as above stated of $252,178,582.34, in accordance with Mr.
Carnegie's testimony, is sufficient to keep the plants whole, then the
amount of $213,192,140.78 would increase the adjusted earnings of
$1,109,146,593.49 to that extent.
The amount of $213,192,140.78 includes $15,401,517.45 sinking
funds on bonds of subsidiary companies which I have included in
3630 UNITED STATES S'
ixjjixj owxijr\jxwia.iv/ii •
my statement of adjusted earnings, and therefore the amount subject
to the above statement would be $197,790,623.33.
If it should be determined that the above amoiint of $197,790,-
623.33 is not a proper charge against earnings (or if a proper amount
for depreciation has already been charged to and included in the
heading of ordinary maintenance and repairs, which amounts to
$266,178,582.34) , then the adjusted earnings would amount to $1,306,-
937,716.82, which would be equivalent to 36.6 per cent on the sales
to outsiders of $3,569,629,995.97, which is equal to 57.7 per cent on
cost.
Section Two. — Exhibits ; Extracts from Minute Books ; Extracts
FEOJi Previous Eeports. (See Appendix.)
Since my report of December 4, 1911, I have received from the
United States Steel Corporation and submit herewith :
(1) Statements showing average production cost of Bessemer and
basic pig iron, all northern furnaces ; Bessemer steel ingots and open-
hearth steel ingots, all northern furnaces; standard Bessemer rails
and standard open-hearth rails, all northern furnaces ; Bessemer and
open-hearth steel blooms and large billets, all northern mills; sheet
and tin-plate bars, all northern mills; heavy structural shapes, all
northern mills; universal plates, all northern mills; sheared plates,
all northern mills; wire rods, all northern mills, for the years 1909
and 1910; and
(2) Statements showing highest and lowest cost of Bessemer pig
iron for 1909, basic pig iron for 1909 and 1910, Bessemer steel ingots
for 1909, and basic steel ingots for 1909 and 1911.
(3) Since my report of December 4, 1911, I have extracted from
the minutes of the executive committee of the United States Steel
Corporation all matter in relation to labor and kindred subjects,
which I submit herewith.
(4) In an appendix at the foot of this report I submit Exhibit
28, being the extracts from the minute books of the United States
Steel Corporation and its subsidiary companies, as far as submitted
to me and examined by me, as enumerated in my report to the com-
mittee of December 4, 1911.
(5) Also, in order to complete- the printed record of my pro-
ceedings, I submit such portions of my reports of July 18, August 2,
and December 4, 1911, as are material for supplying a complete
record.
Section Three of My Report Includes the Following :
Exhibit 29, being a summary of all the evidence taken or collected
by the committee up to the completion of the said summary (to
Avhich all later and additional testimony or evidence can be added
in the loose-leaf binders which are submitted herewith) , with which
L AJO kj J.
^^^ COEPOEATION. 3631
is combined an index in three parts, showing (1) the subjects in-
cluded in the inquiry, (2) the companies and firms, and (3) the in-
dividuals investigated and referred to in the testimony, etc., and
below a brief of such evidence.
Hereunder I submit a brief of the evidence as far as the same
has been summarized in the summary and index submitted herewith,
which summary and index and brief were prepared by Mr. Anthony
J. Ernest, of the New York bar, in collaboration with me.
I had Mr. Ernest prepare the matter relating to these subjects, in-
asmuch as my authorization and instructions from the committee
embraced a wider inquiry than merely examining the accounts, and
included an examination of the Sherman law, the resolution appoint-
ing the committee, the testimony, and other data.
The sources of the data are: (1) The minute books of the United
States Steel Corporation and its subsidiary companies as far as
furnished to me and examined, which are enumerated in my letter
to the committee of December 4, 1911 (vol. 36, p. 2548) ; (2) the tes-
timony taken before the committee; (3) the exhibits; (4) .report of
the Senate investigation of the acquisition of the Tennessee Coal,
Iron & Railroad Co.; (5) the testimony before the Ways and Means
Committee of the House of Eepresentatives in the tariff hearings
(1908) ; (6) the report of the Commissioner of Corporations upon
the steel industry; (7) the Government's bill of complaint against the
United States Steel Corporation, and the answer of the Steel Corpo-
ration and others; (8) the records in suits against the Steel Corpora-
tion; (9) Bridge's "Inside History of the Carnegie Steel Co.; " (10)
the books published by the Russell Sage Foundation in the Pitts-
burgh Survey, entitled " The Steel Workers " and " Homestead,"
by Fitch and Byington, respectively; (11) other books and pub-
lications dealing with the steel industry, svich as " The Iron Age,"
" Swank's Reports," etc.
(Later and additional data can be added to the summary of the
evidence under proper headings in the loose-leaf binder submitted
herewith.)
A large amount of data has been collected upon various subjects,
but only such matters as are relevant and important to the inquiry
of the committee are presented in, the brief of the evidence. Follow-
ing the lines of the inquiry of the committee, under the resolution
creating it, and the evidence developed at the hearings, certain con-
clusions may be drawn from the evidence, which may be briefly
stated, as follows :
1. Competition between previously competing concerns was termi-
nated by the concentration of the control of upward of 180 corpora-
tions into one security-holding company known as the United States
St«el Corporation.
H'O'd'H UNITED STATES SI -
2. The United States Steel Corporation is merely a security-hold-
ing corporation, engaging in no business except the control through
stock ownership of the subsidiary companies.
3. There were acquired and brought under a single control up-
ward of 180 concerns in lines of business allied with the steel-making
business, which, as Mr. Gary testified, no longer compete with each
other (2 ; 3 ), to wit:
(a) Ore owning and mining companies, which are not now com-
peting in the sale of ore.
(6) Transportation companies. Amongst others are the Duluth
& Iron Range Eailroad, formerly controlled by the Minnesota Iron
Co., and the Duluth, Missabe & Northern Railroad Co., formerly
controlled by the Lake Superior Consolidated Iron Mines, these two
railroads being substantially parallel and about 25 miles apart and
inclosing a large area within a short distance of both roads — the
Duluth & Iron Range Railroad Co. on the north and the Duluth,
Missabe & Northern Railroad Co. upon the south.
(e) Pi ff -iron plants. — The Steel Corporation has combined a num-
ber of concerns that manufacture pig iron. Before the consolidation
some or all of these concerns had been purchasers of pig iron in the
market in competition with each other. In 1899 the American Steel
& Wire Co. bought pig iron from the Federal Steel Co., and in 1900
it bought pig iron from the Chenango Furnace Co., the Brier Hill
Iron & Coal Co., and in 1900 it sold pig iron to the Carnegie Steel ,
Co. (See 6-317.) (See Summary of Evidence for other transac-
tions.)
First. The executive committee of the Steel Corporation early
annoimced the policy :
Subsidiary companies will not compete against each other if they are buying
pig iron at the same time.
(Executive committee minutes, Apr. 20, 1901), and it was recog-
nized that purchases of pig iron would raise prices $1 or $2. In the
minutes of the directors of the Carnegie Steel Co., April 1, 1901, it
Mas stated:
If we were to buy to-day the iron submitted, it will put the price up $1 or
$2 per ton.
Second. This power to raise the price of pig iron by purchases was
exercised and advocated because of the gain to be made upon sliding-
scale contracts and upon the price of finished products. For exam-
ple, in the minutes of the directors of the Carnegie Steel Co., May
11, 1903, it was stated :
Mr. CoBKT. I should like to have the views of the board as to the advisability
of buying Iron for the third quarter. There is only about 65,000 tons in the
market for the third quarter's delivery, and if we buy at this time it will be
largely for the purpose of preventing the furnace people from offering It around.
UNITED STATES STEEL COEPOBATION. 3633
and thus demoralizing the market. If we could buy up to this quantity, It
would undoubtedly do a great deal to strengthen the situation. The price
would be around $18, Valley. After discussion it was agreed that the iron for
the third quarter should be purchased, with assurances from the furnace people
that 66,000 tons was all the available iron for that quarter and that no more
would be put In the market.
On May 5, 1903, in the minutes of the executive committee of the
Steel Corporation, it is said that the president stated :
That he believes we ought to always be buyers of some pig iron ; that it would
be better to even shut down some of our high-priced furnaces and be purchasers ;
that the price of our finished steel products being regulated by the price of
pig iron, we ought not to be endeavoring to get the cheapest iron ; that we ought
to maintain prices by little purchases ; that $1 a ton Is such a little thing com-
pared with the advantages we receive in the finished products; that if we did
purchase pig iron, there would not have been the present downward tendency
in the market.
The chairman stated that he would be in favor of making the
purchases.
• • ♦ I do not think we ought to buy pig iron at prices considerably
higher than the prices will be when we want the iron. Business conditions are
such that next July and August we ought to buy pig iron at $18.50 or $19 a ton,
but I do not think it Is necessary to buy it now.
The price advanced from $16 to $21 because of this scarcity, but the price of
unfinished steel did not advance. I would like to see pig iron sent down to
about $16.60 a ton and stay there.
Mr. Gayley. ♦ * * ] think we ought to hold the price of pig Iron at
$18.60, and that it Is important for us to stay in the market and buy at $18.50
rather than miss the deal. • • »
Upon motion, duly seconded, it was voted that the matter be placed in the
hands of the president to act. (Cf. Carnegie Steel Co. directors' minutes, Dec.
8, 1906.)
It is noted in the minutes of the Carnegie Steel Co. directors, No-
vember 24, 1903, that :
The makers met last week and agreed to run only four days a week. They
are tired of low prices.
Eeferences to purchases of all the iron upon the market are also
made in the minutes of the Carnegie. Steel Co. directors, May 18,
1903, and April 3, 1905.
As late as February, 1910, the purchase of 2,550,000 tons of pig
iron by the sudsidiary companies was referred to the chairman and
president of the United States Steel Corporation (minutes finance
committee, Feb. 24, 1910) .
This amount represents, as we shall see below, 322,000 tons more
than the combined blast-furnace capacity added to the Steel Corpora-
tion by the purchase of the Tennessee, Union, Clairton, Shelby,
Troy, and Trenton companies added together.
81572— No. 53, pt. 1—12 3
3634 UNITED STATES STEEt, CORPOBATION.
While forbidding these subsidiary companies to compete in buy-
ing from independent makers of pig iron, the United States Steel
Corporation at the same time restrains its subsidiary concerns from
producing and selling pig iron and causes an increase in price and
prevents an increase in output, as will be further substantiated be-
low. For example, it appears that before the control of the Ten-
nessee Coal, Iron & Railroad Co. was acquired by the United States
Steel Corporation, the Tennessee company sold pig iron in 1904 for $9
a ton, but after the purchase by the United States Steel Corporation
the price was raised to $12.50 a ton ; and the Iron Age said, in 1908
(July 23) :
One of the largest Interests Is practically out of the market, refusing to
depart from the schedule of $12.50. The announcement that the output is not
to be increased to the extent recently arranged for is significant.
(Tariff Hearings, vol. 2, 1908, p. 1382.)
Judge Gary testified that the Tennessee company produced 602,000
tons of pig iron in 1907. This was a little over half of its capacity.
(See Report of Commissioner of Corporations, p. 269.) It has also
been testified that pig iron could be made cheaper at Birmingham,
Ala., than anywhere else in the United States (15-1011, 983), the
Birmingham cost being $4 under the Pittsburgh cost, as estimated by
one witness (15-983), and only 40 to 43 per cent of the Tennessee
company's products are sold in the South, the balance being sold in
the North (17-1257). The Union-Sharon plants had a pig-iron
capacity alleged to be 750,000 tons a year in the Government com-
plaint (p. 28), or 180,000 tons a year, as stated in the answer of the
Steel Corporation (p. 24). The Clairton plant had, a capacity of
475,000 tons a year, as alleged in the Government complaint (p. 29),
or 420,000 tons as alleged in the answer of the Steel Corporation
(p. 26).
With the light afforded by the information from the minutes set
forth above, there may be some modification of the inference drawn
by the commissioner of corporations (p. 367 of his report) :
When it is recalled that during this period the large plg-lron capacity of the
Union-Sharon and Clairton Steel Companies and of the Tennessee Coal & Iron
Co. was acquired, not to mention still larger additions by new furnaces built
(see table 29, p. 269), the failure of the corporation to substantially Increase
its percentage is a striking illustration of the growth of independent production.
Now, the table referred to in the quotation (table 29, p. 269) shows
additions to blast-furnace capacity by the purchase of the Tennessee,
Union, Clairton, and Shelby, as well as Troy and Trenton companies,
along with the new construction of the Steel Corporation (from
April 1, 1901, to Jan. 1, 1911), of 8,800,468 tons, which resulted in a
total capacity of 16,240,700 tons on January 1, 1911.
But upon page 370 of the report there is a table showing the pro-
duction of pig iron, spiegel, etc., yearly, closing in 1910 with a pro-
UNITHU STATES STKHr. COBPOBATION. 3685
(liic('u)ii of ll,H;U,;i!iS (oils, and also showing that the corponilion's
production of sli-cl inj^oLs aiul cas(iii{j;s cxcoeded its pig-iron pro-
duction by nil avoru|,fo of over 1,700,000 tons a year.
None. — It, tnlcoB about lA tons of Iron to make a ton of steel. (Tariff Henr-
IngH, 1008, vol. 2, p. 1085.)
In otluu- woi"ds, (1)0 Steel Corporation produces 5,000,000 tons less
tlian its lota! capacKy for blast- I'Mrnac-o production, and at the same
time prodnees an averaj'c of 1,750,000 tons a year of steel ingots and
castiiifis (from 1!K)1 to 1911) more than its production of pig iron,
Spiegel, ete. The coniiiiissioner of corporations says (p. 371) this
excess of steel production ovei- blast- furnaee production does not
mean tluit^ the Steel (\)rporation has relied, "to an increasing extent,"
upon (>ntsi(h> ^ll^na(•(^s for its supply of pig iron, but that it is largely
due to the use of scrap and stwl in open-hearth steel manufacture.
Hut, ol" course, i\w eoinniissioner is not referring here to the diminu-
tion of blast -fuT•nM^•(^ pi'oiluction of r>,()()0,(H)() tons below the blast-
furnace cajMicity. It is in connection with this underproduction that
the ac(piisition ol' the Tennessee, fliiirton. Union, Shelby, Troy, anil
Trenton companies should be considered, because, notwithstandini!;
tliat {\w ca{)acity of the plants acquired only represented 2,2'J8,000
tons, or '2!>i^o per cent of tiie original t'apacity of the Steel Corporation
in lHOl (whereas tiie new construction adtled (),f)7'2,4()8 tons, or 88
per cent, to the original capacity (id., p. -(>!))), ne\ertheless these ac-
<(uii'i>d eoiu'erns wert< removed from the iiuiepciulent lield as makers
of pig ii'on.
The total cafiacity added to the Steel Corporation of i;,2'JS,000 is
less than half of the amount (f),000,000) by which the corporation's
prodiu'tiou remains lu'low its capacity, and it is nut one-third of the
amount of capacity added by the new construction of the Steel
Corporation.
It would seem to be clear therefore that the acquisition of these
concerns was of no i-onsequence whatever in increasing the blast-
furnace capacity of the Steel Oiir[H)ration compared to its shown
imderproviuetion and new construction; but the only eonsequence of
the ac(piisition which can bo seen is the removal of these concerns
from ihfs competitive lield.
'I'he removal of this iiule[)endent production from the market,
along with the large production already controlled by tlie Steel Cor-
poration, in view of the conduct of the corporation as to maintaining
(he price of pig li'on, «s iiulicated above, for the benelit derived from
their linished product, necessarily tended to forestall competition in
pj|f iron.
If it be claimed tlu»t the pig-iron production or capacity of the
plants controlled by the Steel C'orporation luis bci'ii decreased since
their acquirement of etudrol. ^uch action on the part of the Siwl Cor
3636 UNITED STATES STEEL CORPORATION.
poration is entirely consistent with the purpose to maintain a high
price on a limited production.
(D) Coal and coke companies. — ^Before tlie organization of the
Steel Corporation coke was sold by the Frick Co. and other com-
panies to various companies now combined in the Steel Corporation,
as well as to Jones & Laughlin, Cambria, and other independent con-
cerns.
Coke was sold by the Pocahontas Co. to the Illinois Steel Co. be-
fore the formation of the Steel Corporation, and was sold to the
Federal Steel Co. by the Frick Co.; coke was sold to the National
Steel Co. before the formation of the Steel Corporation; and the
National Co. had other sources of supply. But after the formation of
the Steel Corporation, and as early as October, 1902, Mr. Gayley
said that the surplus coke not used by the Steel Corporation
amounted to 2,400 tons, and in this connection :
We sell this coke at a profit of 5 cents or 10 cents per ton, and have done
this merely to regulate the price. (U. S. S. C. Ex. Com., Oct. 14, 1902.)
It appears by an affidavit of Mr. Lynch, quoted in the Eeport of
the Commissioner of Corporations, that there were less than 15,000
acres of unmined coal in the entire Connellsville Basin which did not
belong to the Steel Corporation. In December, 1901, the Steel Cor-
poration secured a lease of 50,000 acres of Pocahontas coal. Later
it acquired competing coke-making plants of the Union Steel Co.,
Clairton Steel Co., Hecla Coke Co., Tennessee Coal, Iron & Eailroad
Co., Hostetter-ConnellsviUe Coke Co. (additional 36.4 per cent in-
terest), and coal lands in Illinois and Indiana, and also 7,000 acres
of Colonial Coke Co. tract, and 9,000 acres of the Monongahela
River Consolidated Coal & Coke Co., and later and other large acqui-
sitions. (See summary of evidence.)
The concentration of control of these properties has increased their
value, it is said by the Commissioner of Corporations. (Report,
pp. 311, 315.)
After the organization of the Steel Corporation, as stated above,
the surplus coke for sale by the corporation was only 2,400 tons, and
this was sold " merely to regulate the price." Before the organiza-
tion, Jones & Laughlin, Cambria, Lackawanna Co., Republic Co. were
sold in some cases all requirements by the Frick Coke Co. The ac-
quisition of the Frick Co. and the consolidation with it of a large
numter of coking companies prevented this free competition with
outside companies in sales to the independent steel concerns above
named.
Before the organization of the Steel Corporation the Carnegie
Steel Co., by stock control of the H. C. Frick Coke Co., compelled
tha^ company to supply coke to the Carnegie Steel Co. below the
UNITED STATES STEEL COEPOEATION. 3637
market price (at $1.65 a ton), which caused the Frick Co. to sustain
a loss which has been estimated at $4,000,000 a year (the market price
being $3.50 a ton), and to refund $596,000 to the Carnegie Steel Co.
for coke sold the year before this arrangement. This arrangement
undoubtedly prevented the selling of coke to the Carnegie Steel Co,
by independent coke concerns, as well as enriching the steel com-
pany at the expense of the coke company, by means of manipulation
by directors interested in another company.
The form of control exercised over the coke- company was changed
by the consolidation of the coke company with the Carnegie Co. and
the subsequent consolidation with the United States Steel Corpora-
tion and thereafter with the other coke companies, but the control
was perpetuated and extended by these later consolidations, which
also, as we have pointed out, prevented trade with independent steel
concerns and prevented competition with independent coke com-
panies, except by the sale of the surplus coke which is merely sold to
regulate the price as above stated.
(E) Steel making companies. — Between none of these concerns
was there any restraint of competition before the consolidation
(except illegal pools), so far as now known, and between many of
them there was active competition, as has been partly admitted (see
answer of United States Steel Corporation in Government suit)
and still further can be proved.
i. A large number of the major concerns were acquired at much
inflated valuations, succeeding several increases in the capitalization
of preceding incorporations. This was admitted to be due, in some
cases, to the greater combination value or merger value of the con-
solidation.
(See report of Commissioner of Corporations for details of capi-
talizations and overcapitalization and overvaluation, page 326 and
generally.)
In this connection it may be noted that in giving testimony before
the Ways and Means Committee in 1908, E. H. Gary, chairman of the
Steel Corporation, was questioned with respect to a valuation of
$1,782,187;383 for the properties of the Steel Corporation at the
close of 1907. An excerpt from his testimony before that com-
mittee follows :
Mr. CocKBAN. Of this whole sum of $1,782,000,000, was not $1,000,000,000, at
least, capitalized profits as distinguished from original Investment?
Mr. Gabt. I should have to guess at that; but I should guess yes, including
Increases in value. (Tariff hearings, vol. 2, 1745.)
From the report of the Commissioner of Corporations on the
steel industry the following facts are gleaned:
That at the organization of the United States Steel Corporation in
1901 its capitalization was about $700,000,000 more than the fair
3638 UNITED STATES STEEL CORPORATION.
mSiTket value of its tangible property, and that in so far as that
excess represented value in 1901 it was value due either to increased
earning power from elimination of competition, concentrated owner-
ship of the basic natural resource^, iron, ore, and coal, or in some
degree integrr.t:.-:ii eificiency.
Also that since tie formation of the corporation that competition
with the so-called independent steel companies, so far as prices are
concerned, has been modified by the policy of "cooperation." (Id.,
p. 373.) That in the formation of the corporation and of the merg-
ers of other companies which preceded it and are now subsidiaries
of the United States Steel Corporation, the three most important
features to be considered were :
First. The restriction or elimination of competition, the most im-
l^ortant and the principal cause of most consolidations in the steel
industry.
Second. Integration, namely, the acquisition under one control of
raw materials, manufacturing plants, and transportation facilities.
Third. The creation of a great amount of inflated securities which,
in many cases, was the controlling inducement for owners to dispose
of their businesses. Also the opportunity for the underwriters and
promoters to reap a huge profit in the flotation of the said securities.
In this connection it may be noted that the profits of the syndicate
of the United States Steel Corporation amounted to, roughly, $130,-
000,000 in par value of preferred and common stock, from which,
deducting $28,000,000 in cash contributed by them, will leave a cash
profit to the promoters of $62,500,000 in addition to $6,800,000 com-
mission subsequently paid to J. P. Morgan & Co. for the bond-con-
version scheme.
5. The process of combination of these concerns may be divided
into three parts for convenience in considering their effect upon
competition :
(A) The original or early combination of the major concerns and
those immediately subsidiary, which necessarily tended to eliminate
all possibility of competition between them.
(B) Instances of combinations or consolidations adniittedly or
inferribly having a direct effect to remove competition, or in the
accomplishment of which the removal of competition was the de-
clared object or is the easily inferred object of the consolidation.
(C) Other acquisitions of corporations and concerns in related
lines of business, for the acquisition of which no explanation has
been offered and none appears except the visible consequence of such
acquisition, to wit, the removal of such concerns from the inde-
pendent field.
These three divisions of the process of consolidation and com-
bination will be referred to below.
TTNITBD STATES STEEL COEPOEATION. 3639
It will perhaps be admitted that any single case of combination
with intent to remove competition will reflect light upon the other
cases where the circmnstances are similar and the methods pursued
were similar, although the intent to remove competition is not
specifically avowed.
(A) The early consolidations brought some very large concerns
having numerous subsidiaries under the control of the Steel Cor-
poration. Some of these at that time controlled large percentages
of the business in their several lines. The National Tube Co. is
admitted in effect to have controlled 72 per cent of the business in
tubular products in 1899 (p. 8, answer of Steel Corporation) ; the
American Steel & Wire Co., of New Jersey, controlled 77.6 per cent
of the wire-rod production and 65.8 per cent of the wire-nail produc-
tion of the United States; the American Tin Plate Co. controlled a
large percentage of the tinplate production, and in 1908, the produc-
tion of tinplates and terne plates controlled by the Steel Corporation
was estimated at 72 per cent; the Steel Corporation controlled 70
per cent of the Bessemer ingot and casting production and 59 per
cent of the open-hearth ingot and casting production ; in year prior
to 1907, it appears from the reports of the American Iron & Steel
Association that the Steel Corporation" did not produce any open-
hearth rails, but in 1908 it controlled 46:3 per cent of the production,
and in 1910, 57.4 per cent of the production of open-hearth rails ; the
ore holdings of the corporation were greatly in excess of all others
combined and were estimated at 76 per cent of the Minnesota ore by
the Minnesota tax commission for 1907, and although there is a
large amount of ore in other States :
The steel industry Is essentially based upon the ores of the Lake Superior
district. (Report of Commissioner of Corporations on the Steel Industry, pp.
58 and 380.)
Note. — The above percentages were obtained from the tables of the American
Iron & Steel Association, except where otherwise stated. (See Report of Com-
missioner of Corporations.)
(B) After the organization of the Steel Corporation a number of
concerns were acquired admittedly or inferentially because they were
competing concerns.
As throwing, light upon all instances of this class the following
extract from the minutes of the meetings of the auditors of the
subsidiary companies (Dec. 8-9, 1904), presided over by W. J.
Filbert, comptroller of the Steel Corporation, is important :
PLANTS, ABANDONMENT OF.
It was stated that often the principal consideration about the purchase and
later abandonment of a certain plant was the fact that by getting the plant we
were able to eliminate its competition, ' * *.
3640 UNITED STATES STEEL, COEPOBATION.
(1) Gris-wold Wire Co., Braddock, Pa., were said to be " the only
ones making ties in opposition to our company " (United States
Steel Corporation, executive committee minutes, June 3, 1902), and
while the chairman stated that the property had been talked of as
worth $50,000, it was upon motion of Mr. Steele recommended that
the property be bought at $75,000 or better.
But in the minutes of the directors of the American Steel & Wire
Co., of July 15, 1902, it appears that —
They (the committee) had completed such purchase by the payment of
$105,000, on basis of $140 per share (the sellers having guaranteed that the
assets exceed the liabilities by about $30,000, making the actual purchase price
to this company about $75,000).
Among the assets of this company it appears there was a patent for
making dimension or exact-length ties (United States Steel Corpora-
tion, executive committee minutes, June 3, 1902), and this may ex-
plain the statement that " they are the only ones making ties m
opposition to our company," inasmuch as the patent may have
enabled the Griswold Co. to make ties " in opposition to " the Steel
Corporation, but only 42 days passed after this statement until the
purchase of that company's entire capital stock of $75,000 at $140
per share, or $105,000, while its assets exceeded its liabilities by
about $30,000. The excess of $75,000 was evidently paid to stop
the Griswold Co. from making ties " in opposition to our company,"
and to have the ties made by the Steel Corporation's subsidiaries.
II. The Union Steel Co. is referred to a number of times as
follows :
Mr. Corey (president), in the minutes of the Carnegie Steel Co.
board of directors, July 1, 1902, said, in part :
Me. Cobet. The only item of interest I have to-day is to state that at the last
meeting of the presidents it was decided by a majority, and approved by the
president of the Steel Corporation, that Carnegie and National Steel Co. are
not to sell unfinished material on scale contracts to any companies competing
with constituent companies of the corporation ; and such scale contracts with
such competing parties are to be discontinued at as early a date as pos-
sible. • • •
I was much surprised to find we have such a small number of concerns on
our books receiving unfinished steel from us, which compete with the constitu-
ent companies. The only one in fact that takes any great quantity is the Union
Steel Co.
In November of the same year (Nov. 4, 1902) there is another
reference to the Union Steel Co. :
UNION STEEL CO.
Mr. Cokey. * * * I am strongly in favor of pushing the Union Steel Co.
as hard as we can. There is nothing we can do to smooth matters over with
them as they are determined to do all they can against us. For this I think
$28 for billets would be high enough.
■UNITED STATES STEEL COEPORATION. 3641
In the meeting of directors of the Carnegie Steel Co. of July 1,
1902, it was stated that unfinished steel sold to concerns competing
with constituent companies will be "at such figure as will be above
that at which we sell constituent companies."
In December of the same year (Dec. 9, 1902) it is stated in the
minutes of the finance committee of the Steel Corporation that
Judge Eeed submitted a contract with the Union Sharon people, and
the chairman was instructed to execute the same. (Mr. Perkins in the
chair.)
In January, 1903 (Jan. 6, 1903) , in the minutes of the directors of
the Steel Corporation, reference is made to —
contract dated December 15, 1902, with A. W. Mellon, R. E. Mellon, W. R.
Donner, William Fllnn, George W. Darr, John Stevenson, jr., and J. P. Whitla
for the purchase of aU the capital stock of the Union Steel Co., in which Henty
Frick has an interest, upon terms and conditions set out in a written agreement
read before the meeting and adopted by an affirmative vote of all present, Mr.
Frick retiring, the capital stock amounting in the aggregate to $20,000,000',
Including stock of Henry C. Frick.
This contract is submitted with this report as Exhibit K. It was
made between the United States Steel Corporation and A. W. Mellon,
R. B. Mellon, W. H. Donner, William Flinn, George "W. Darr, John
Stevenson, jr., and J. P. Whitla on December 15, 1902. The date
should be noted. A previous agTeement dated November 20, 1902,
had been already entered into between the Messrs. Mellon, Donner,
Flinn, Darr, Stevenson, and Whitla, providing for the merger of
the Union and Sharon concerns, which is also submitted with Ex-
hibit K herein.
The original capitalization of the old Union Steel Co. was
$1,000,000 and of the old Sharon Steel Co. $3,000,000.
In this agreement of December 15, 1902, the United States Steel
Corporation agrees that the men above named are to go ahead with
the merger of the Union and Sharon companies and increase the
capital stock to $20,000,000, and issue $45,000,000 of bonds, and the
agreement then continues:
Ninth. Upon the organization of Union, as herein provided, the vendors
agree to sell and transfer unto the steel company, and the steel company agrees
to buy all of said $20,000,000 of the capital stock of Union. In consideration
thereof, and contemporaneously with the said transfer, the steel company
hereby agrees that it will duly and legally guarantee the payment of the prin-
cipal and interest of all of said $45,000,000 of bonds of Union as the same shall
respectively become or be made due and payable according to the terms of said
bonds. * * *
Tenth. The vendors severally agree with the steel company that they re-
spectively will not, within the United States or Dominion of Canada, for a
period of 10 years from December 1, 1902, engage directly or indirectly in the
manufacture of Iron or steel, or articles made therefrom, now manufactured
by the steel company, the production of furnace coke, or the mining or produc-
3642 UNITED STATES STEEL COEPOBATION.
tion of iron ore, except in the Territory of Arizona and State of Florida;
excepting, however, from the terms hereof the enteuprises, If any, ia which
such parties may now respectively be engaged.
And in the next paragraph, viz, the eleventh, it is provided tliat—
the said vendors do further stipulate that they do not have, either individually
or together, any ore properties which are not owned by Union or Sharon, o«?
the companies controlled or owned by said companies, respectively.
Sixty-five days after making of this agreement, and in pursuance
thereof, at the meeting of the stockholders of the Union Steel Co.
held February 18, 1903, the capital stock was increased from
$1,000,000 to $20,000,000 ; and an issue of bonds in the amount of
$45,000,000 was authorized.
Although the merger of these properties included some 11 sub-
companies holding the ore, coal, and other property at a large capi-
talization of about $17,000,000, nevertheless the Keport of the Com-
missioner of Corporations (pp. 282-286) points out that there were
many overvaluations and very high valuations in calculating the
worth of these properties, and finally on page 286 says :
There can be no question that the prices paid by the Steel Corporation
for both the coal and the iron-ore properties were considerably in excess of a
fair valuation at the time of the transfer. The real significance of the trans-
action seems to be that the steel corporation desired to eliminate the compe-
tition of certain Influential Interests back of the Union concern, particularly
that of Mr. Frick, and that the amount necessary to induce these owners to
retire from such competition was, in effect, charged against the ore and
coal * * *.
The truth of this is corroborated by the fact that since the United
States Steel Corporation has held this property and for a number
of years it has not paid the interest on its bonds, the deficit being
from $500,000 to $2,000,000 in some years and aggregating over
$9,000,000 in nine years (see Exhibit 18c), and this failure to pay,
it seems, was not upon the whole $45,000,000, but considerably less
(see p. 282, Report of Commissioner of Corporations on Steel In-
dustry, pt. i, July 1, 1911) , the published reports of the United States
Steel Corporation showing that only about $36,000,000 of these bonds
were ever outstanding in the hands of the public, although it also
appears that in 1905 (Union Steel Co., minutes of board of directors,
Sept. 26, 1905) that the Union Steel Co. issued $3,874,000 of bonds
in addition to those theretofore issued.
The conclusion of the Commissioner of Corporations that the acqiji-
sition of the Union Steel Co. property was really aimed af eliminat-
ing competition is strengthened by the evidence stated above, and will
be further supported by further evidence. In this connection, it
seems clear that the buying of these properties did not add to the
efficiency of the organization of the steel company nearly as much as
UNITED STATES STEEL COEPOBATION. 3643
would have been added by the expenditure of an equal amount of
money for new construction.
The answer of the Steel Corporation in the Government suit denies
the intention to eliminate competition in acquiring this property,
but admits that the production of the Sharon Steel Co. was small,
and that the capacity of the Union Steel Co., after the merger of the
Sharon Steel Co. in November, 1902, was 180,000 tons of pig iron
(as against 7,802,812 tons production of the Steel Corporation, 1902,
Eeport Commissioner of Corporations, p. 360) and 350,000 tons
of steel ingots (as against 9,743,918 tons production of the Steel
Corporation, 1902, Eeport Commissioner of Corporations, p. 360).
(See above in relation to underproduction of pig iron, par. 3,
subd. C.)
Comparing the investment of the Steel Corporation in manufac-
turing property devoted to the production of 7,802,812 tons of pig
iron and of 9,743,918 tons of steel ingots with the cost of the Union-
Sharon properties, to wit, $30,860,501 and the guaranty of $45,000,000
of bonds (after deducting a fair valuation for coke, ore leases, and
fee holdings and transportation companies), it is believed that the
result will justify the conclusion of the Commissioner of Corpora-
tions set forth above (report, pp. 282-286).
A comparison of this amount of $75,860i501 paid and guaranteed
for the Union- Sharon properties, with the valuation of the property
of the seven large so-called independent steel concerns four years
later, in 1907, is illuminating. These were as follows :
BethleJiein ^ $44, 450, 881
Cambria . 45, 281, 892
Colorado 41, 919, 448
Jones & Laughlin (capital and bonds) 45,000,000
Lackawanna 65, 647, 388
Pennsylvania 25, 377, 147
Republic 53, 092, 153
The Commissioner of Corporation (report, July 1, 1911) refers to
this matter further, as follows (pp. 252-254) :
The acquisition of this company (Union Steel Co.), which, as stated above,
had just absorbed the Sharon Steel Co. and the old Union Steel Co., is im-
portant not only on account of its large production, but also because both the
constituent companies had been organized by individuals vrho had previously
been in the steel business, but who had sold out their properties to one or the
other of the various consolidations which later constituted the United States
Steel Corporation. This purchase, moreover, was of particular interest because
the Union and Sharon Steel companies were exceptionally aggressive com-
petitors, with strong financial bacl£ing.
After reviewing the capacity of the Sharon Co., the report con-
tinues (p. 253) :
It will be seen, therefore, that the company's operations were of a character
to bring it into sharp competition with the United States Steel Corporation. It
3644 UNITED STATES STEEL COEPOBATION.
should be noted, moreover, that the company had taken Important steps toward
securing a supply of raw materials. • » *
After reA'ieTviiig the capacity of the old Union Steel Co., continues
(p. 254) :
Among other influential interests back of the concern was H. C. Frick. Mr.
Frick at this time was also a director in the United States Steel Corporation.
Merger of Union and Sharon concerns. — The strong backing of the Union
Steel Co., together with its extensive operations, made it an important com-
petitor of the United States Steel Corporation. Its operations assumed still
greater signiflcahce when, toward the end of November, 1902, announcement
was made of the merger of the company and the Sharon Steel Co., under the
name of the Union Steel Co., to be capitalized at about $50,000,000, thus form-
ing the largest consolidation in the steel industry proper which had been effected
since the organization of the United States Steel Corporation itself.
Plans for increasing capacity and for building a railroad from
Lake Erie to Connellsville district also referred to (p. 254) :
These plans for the merger of the Sharon and Union companies had hardly
been completed, however, before the further announcement was made (in the
latter part of November, 1902) that the United States Steel Corporation had
purchased the entire property. * * *
There can be no doubt that the principal motive of the Steel Corporation was
to prevent the competition which the rapidly extending operations of the Union
concern foreshadowed, and especially to eliminate the rivalry of Mr. Frick.
These interests were disabled from competition by paragraphs 9
and 10 of the agreement set forth above, and by paragraph 11 stipu-
lated that they owned no ore except that held by the Union-Sharon
concerns then conveyed to the United States Steel Corporation. In
consideration of this agreement and stipulation, inter alia, there was
paid and guaranteed by the United States Steel Corporation the huge
sum mentioned above.
III. The Shelby Steel Tube Co. is referred to in the minutes of
the executive committee of the Steel Corporation (July 30, 1901) as
follows :
Mr. Converse stated that it is the only real live competitor the National Tube
Co. has, and that between the two companies all the patents for seamless tub-
ing manufactured are owned.
Mr. Converse was and had been a director of the National Tube
Co. and was undoubtedly familiar with the conditions in the tube
business. In the minutes of the executive committee of the Steel
Corporation (Apr. 20, 1901), it appears that the president stated
that the Carnegie Steel Co. had a contract with the Shelby Tube
Co. to supply it with steel, and that it was very favorable to
the Carnegie Co., inasmuch as the latter company could so arrange
the price of steel that it would be rather difficult for the Shelby Co.
to continue in business; and Mr. Converse stated the National Co. and
the Shelby Co. are the only concerns making seamless tubing.
In the minutes of the executive committee of the Steel Corporation
(Apr. 24, 1901), it appears that the president reported that he had
UNITED STATES STEEL CORPOKATION. 3645
had an interview with Mr. Miller, of the Shelby Tube Co., and ex-
pects to receive from him a statement covering the last six months,
showing shipments of iron and amount of orders on the books. Mr.
Miller's statement will be furnished to Mr. Schwab by the National
Tube Co. It was suggested that some arrangement could be made
with Mr. Miller, with a view to maintaining prices, and that some
prices now could be advanced by both companies.
In the testimony (vol. 23, p. 1639), there appears the following ex-
tract from the minutes of the executive committee of the Steel Cor-
poration, April 30, 1901 :
The president reported in a general' way the result of an Interview had with
Mr. Miller, of the Shelby Tube Co. Mr. Schwab believes it is not at present
feasible to make any division of the business of the National and Shelby Tube
C!os. Upon the question of the acquisition of the property of that company, the
president stated that the stock outstanding amounted to $8,000,000 of common
and $5,000,000 preferred stock. He also gave figures showing the business
transacted by the Shelby Co. He is impressed with its earning capacity, and
believes that under our control it would net about 50 per cent. He rather
thinks that the whole property could be purchased for about $3,500,000. Mr.
Converse stated that it is the only real live competitor the National Tube Co.
has, and that between the two companies all the patents for seamless tubing
manufacture are owned. The president suggested that If the purchase Is made
it might be done by giving stock of the United States Steel Corporation in ex-
change for stock of the Shelby Co., and he would propose one share of preferred
stock for two shares of preferred Shelby stock ; one share of common stock for
five shares of Shelby common stock. Mr. Converse estimated that the properties
of the Shelby Tube Co. had cost about $4,000,000, and thinks very well of such
a purchase if it can be made at a price named by the {)resident and effected
through exchange of the stock. The chairman suggested that the president of
this company take up the matter again with the Shelby people simply on the
basis of an intermediary with the intimation that the president does not know
what can be done, but will see, etc. Mr. Converse stated that if Mr. Schwab
can effect such a deal, it is a very good one, and that this committee should
then recommend it to the finance committee. The president stated that he
would have another interview with Mr. Miller on the lines of the above and
would report later.
In the minutes of the executive committee of the Steel Corporation
(May 20, 1902), it was stated that the Shelby Tube Co. should run
over 100,000 every month —
besides protecting the National Tube Co. Mr. Heame and Mr. Schiller report
very favorably on that proposition.
In the answer of the Steel Corporation (p. 23), after referring to
the indifferent success of the National Tube Co. in the attempt to
manufacture under one of its patents and the worthlessness of an-
other patent, it states :
That the only patent which proved to be successful was owned by the Shelby
Co. and employed by it in the manufacture of Its product of seamless tubes;
that it was the desire of the Steel Corporation to manufacture seamless tubes
for its customers, and In order to acquire the facilities for so doing, it nego-
tiated with the owners of the Shelby Co. for the purchase of its plant and
3646 UNITED STATES STEEL COKPOKATION.
patents, which resulted in the acquisition of the stock of this company, as stated
in the petition.
In this connection it should be noted that the answer of the Steel
Corporation admits in effect (p. 8) that in 1899 the relative produc-
tion of tubular products controlled by the National Tube Co. was 72
per cent; and the Government's bill of complaint alleges that the
Shelby Co. produced about 90 per cent of the products wMeh were
produced in its lines in the United States (p. 26).
In the report of the Commissioner of Corporations (p. 167) the
value of the tangible assets of the Shelby Tube Co. is given as
$2,791,000, and at page 145 it is stated that $2,893,900 " may fairly
be said to represent the approximate cost of the Shelby Steel Tube
property to the Steel Corporation, reduced to a cash basis."
And it is also stated :
Through the acquisition of this concern, the Steel Corporation established its
supremacy in the seamless tubing branch of the steel industry (p. 145).
(C) A number of concerns in the steel business and allied lines
were acquired by the Steel Corporation, for the acquisition of which
there does not appear to be any persuasive explanation, such as the
increase of the efficiency of the Steel Corporation, and, in fact, no
reasonable explanation except the visible consequence of the acquisi-
tion of such plants, to wit, the removal of such concerns from the
independent field.
1. The Troy Steel Products Go. — In the minutes of the directors
of the United States Steel Corporation of January 6, 1903,
A memorandum agreement was approved dated December 24, 1902, with
A. C. Bedford, representing John D. Roelsefeller, H. H. Eogers, and others,
being the owners of a majority of the securities of the Troy Steel Products Co.,
which company is the owner of the plant known as the Troy steel plant, not
less than a majority interest to be purchased for the sum of $1,100,000, payable
either in cash or in the proposed second mortgage 5 per cent bonds.
The finance committee was authorized to determine the final disposition of
the securities or the property of the said Troy steel plant, and whether the
same shall be vested in one of the subsidiary companies; and if so, which one.
In the report of the Commissioner of Corporations (p. 289) it is
said:
The price paid for this concern was $1,100,000. The company had been un-
successful, and, in fact, had been sold under reorganization in August, 1895.
John D. Rockefeller and H. H. Rogers, both of whom were at that time directors
in the United States Steel Corporation, were interested In the Troy Steel Prod-
ucts Co. It is impossible to say whether this connection with the two con-
cerns had any infiuence upon the purchase or upon the price paid, but it is
proper to repeat that the plant had been idle for several years prior to this
transfer, and that it was never operated by the Steel Corporation. It should
be stated, however, that the stocliholders of the Steel Corporation were spe-
ciiically advised of the connection of these directors with the Troy concern in
a notice of a meeting at which this transaction was submitted to them, and
they approved of the purchase.
UNITED STATES STEEL CORPORATION. 3647
In the minutes of the H. C. Frick Coke Co. (directors, Jan. 52,
1896), it appears that the securities of the Troy Steel Co., being
the first mortgage bonds, $20,000, and certificates of debentures,
$4,526.76, which were in settlement of our claim against the Troy
Steel & Iron Co. for $6,526.76, were examined by the members of the
board and approved.
The Troy Steel Products Co. was the successor of the Troy Steel &
Iron Co. (Report of Commissioner of Corporations, 265). It is said
in the Report of the Commissioner of Corporations (p. 289) :
The company was unsuccessful, and in August, 1895, was sold to a reor-
ganization committee. In 1896 the steel works were removed to Brealier
Island; the capacity of the plant at this time was about 200,000 tons of slabs
and skelp per annum. After this transfer of the steel works, however, the
plant was operated only a few months.
The purchase by the United States Steel Corporation was made in 1902;
* * * the plant was never operated by the Steel Corporation. The steel works
were dismantled in 1907. The blooming mill was removed to the South Chicago
works of the Illinois Steel Co., and the blast furnaces were then standing idle.
In the minutes of the executive^committee of the Steel Corporation
(Nov. 18, 1901), the following appears:
The Troy Iron & Steel Co. — On the question of whether or not the ownership
of this company would be advantageous to the United States Steel Corporation,
the president stated that he does not believe it is of any value to us. Mr.
Converse said that the Carnegie people can deliver material on the docks of
the Troy Co. not only cheaper than it can be made there but at a good profit.
On motion, duly seconded, it was unanimously voted that the president be
requested to decline to entertain the proposition concerning the Troy property.
According to the minutes of the finance committee, August 26, 1902
(Mr. Perkins in the chair), it appears that the Troy plant at Breaker
Island is to be purchased at not exceeding $1,000,000; and in the
minutes of the finance committee, December 9, 1902 (Mr. Perkins in
the chair), the purchase of the Troy Steel Co. for $1,100,000 was
approved. In the minutes of the American Steel & Wire Co., direc-
tors of March 20, 1906, the following appears :
Absorption of Troy Steel Products deficit.
Resolved, That the action of the oflicers of this company in arranging for the
absorption in the profit and loss account of this company, as of December 30,
1905, of the net operating deficit for 1905 (amounting to $17,028.69) of the Troy
Steel Products Co., this company being the beneficial owner of said company's
capital stock, be, and the same hereby is, in all respects ratified and approved.
In the minutes of the American Steel & Wire Co., directors, March
10, 1903, it is stated that the shortage of coke makes it impossible
at present to operate the Troy plant.
In the minutes of the executive committee of the Steel Corporation,
April 21, 1903, it is stated that the chairman said that when we were
urged to buy this property the conditions were quite different from
what they are at the present time; that a special committee had re-
3648 UNITED STATES STEEL COBPOBATION.
ported a certain value to this property and a certain cost of produc-
tion ; that the conditions have changed at the present time ; and that
he does not think it would be advantageous to go ahead simply for
the purpose of supplying the plants at Worcester and Pencoyd.
Attention should be directed to the report of the Commissioner of
Corporations (pp. 255-256, 289), partially extracted above, which
show that the plant was only operated a few months after the trans-
fer of the ownership in 1896; that the company had been unsuc-
cessful ; that the Steel Corporation never operated the plant ; and that,
as appears in the Frick Co. minutes, the securities were transferred
to the Frick Co. for its claim against the Troy concern, and also
to the minutes of the executive committee November 18, 1901, just
quoted.
Upon the facts above stated, it is clear that the acquisition of the
Troy plant did not increase the efficiency of the Steel Corporation's
organization, and the only discernible result of the acquisition was
to displace independent ownership and control by the ownership and
control of the Steel Corporation, af a cost of $107,291.70 in cash and
a note dated January 1, 1906, for $1,100,000, payable in cash or sec-
ond-mortgage bonds of the United States Steel Corporation during
the year 1903, bearing 5 per cent interest (minutes of the directors
of the American Steel & Wire Co. Feb. 17, 1903), and the assumption
of a net operating deficit by the American Steel & Wire Co. of
$17,028.69 in March, 1906. Assuming that this money was not use-
lessly expended, the only return received for it appears to be the
removal of the Troy concern from the control of outside and prob-
ably competing owners.
The Standard Oil Co. was not only a possible competitor, but had
declared, through Mr. Kogers, its purpose of constructing its own
pipe mills. At the meeting of the executive committee July 15, 1902
(United States Steel Corporation), it appears—
that Mr. Rogers had stated that his company would construct Its own pipe
mills If arrangements satisfactory to his company could not be made with vs.
And it appears that a year before, on April 30, 1901, a subsidiary
company of the Standard Oil Co., i. e., the National Transit Co.,
received a lower price from the Carnegie Steel Co. In fact, Mr.
Bope, of the Carnegie Steel Co., said, referring to this :
Personally, I think these prices are too low, but knowing the connection of
the Standard Oil Co. with the new organization, and that it is the wish of
President Schwab that these people be properly treated, I think some conces-
sions should be made to Mr. Arnold,
(who represented the National Transit Co.) ; and a price of 1.50 cents
was given to the National Transit Co.
Furthermore, it should be noted that the Troy plant had a capac-
ity in 1896 of " about 200,000 tons of slabs and skelp." This pro-
duction was suited for pipe manufacture.
-— „ „^^^^ vJOBPOBATIOK. 3649
Certain dates in connection with the dealings with the Troy
concern are significant, viz :
November 18, 1901, it appeared that the executive committee of
the United States Steel Corporation did not consider the property
advantageous to the United States Steel Corporation, and it is said :
On the question as to whether or not the ownership of this property would
be advantageous to the United States Steel Corporation, the president stated
that he does not believe it is of any value to us. Mr. Converse said that the
Carnegie people can deliver material on the wharf of the Troy company, not
only cheaper than it can be made there, but at a good profit.
On motion duly seconded It was unanimously voted that the president be
requested to decline to entertain the proposition concerning the Troy property.
July 15, 1902, it appears Mr. Eogers had stated that his company
would construct its own pipe mills if arrangements satisfactory to his
company could not be made with us. (U. S. S. C. executive com-
mittee, July 15, 1902.)
July 15, 1902, the executive committee of the United States Steel
Corporation approved the sale of plates for a period, at 5 per cent
below prevailing prices, to the Standard Oil Co.
September 23, 1902, National Tube Co. has a stock of 40,000 tons
of merchant pipe on hand, 25,000 tons more than last year —
and that up to the last three years they have not been after the outside com-
petitors, but at the last meeting of the tube company a plan of action was
formulated in such a way as to give the tube company a call on the business ;
they could let It go, if necessary, or take the business if they wanted to do so.
Outside of that, their position for this time of year is very good. (Executive
committee. United States Steel Corporation.)
August 26, 1902, it appears that the Troy plant is to be purchased
at not exceeding $1,000,000. (Finance committee. United States
Steel Corporation.)
December 9, 1902, purchase of Troy Steel Plant for $1,100,000
approved. (Finance committee. United States Steel Corporation.)
February 17, 1903, Troy plant bought by American Steel & Wire
Co. for $107,291.70 in cash and note for $1,100,000 at 5 per cent,
payable in 1903. ,
Troy steel plant was never operated by the United States Steel
Corporation, and had not been operated for about five years before
the formation of the United States Steel Corporation. (Eeport of
Commissioner of Corporations on Steel Industry, July 1, 1911,
p. 289.)
March 20, 1906, operating deficit, $17,028.69, was assumed by the
American Steel & Wire Co.
The plant was dismantled in 1907 and part of the machinery
removed to Chicago. (See report of Commissioner of Corporations,
supra.)
31572— No. 53, pt. 1—12 4
3650 UNITED STATES S
rnmax^—
6. Plants bought or acquired and not operated, or, for which after
such acquisition, new and better plants were substituted.
I. The Carnegie Steel Co., the American Steel & Wire Co., the
American Sheet & Tin Plate Co., the National Tube Co., as well as
the American Bridge Co., discontinued the operation of a large
number of plants shown in the statement of the United States Steel
Corporation, submitted with my letter of December 4, 1911, wherein
it will be seen that most of them are said to be of great age and
generally unfit for operation within varying periods after the ac-
quisition of them by the companies that held them, and the subse-
quent acquisition of control thereof by the United States Steel Cor-
poration.
II. A number of plants, referred to below, were bought by the
American Bridge Co. for a very large consideration, and within a
comparatively short time thereafter a considerable number of these
plants discontinued operation, were dismantled, leased, or sold, or
were not operated by the Steel Corporation.
Within a comparatively short time after acquiring the independent
plants named below for the very large consideration paid for them,
the Steel Corporation planned and started the construction of new
plants, making large additional expenditures for such new plants.
( See minutes, directors American Bridge Co. of New Jersey, Feb. 21,
1901; Oct. 29, 1902; and Dec. 18, 1902.)
If it shall be claimed that it was cheaper for the Steel Corporation
to acquire the old machinery and the tangible assets of the formerly
independent concerns controlled by the American Bridge Co., rather
than immediately to build new plants, such fact undoubtedly supplies
a reason for acquiring these existing plants before constructing new
plants to take their places. But if— as seems to be the case — a large
part of the money paid for these old existing plants was paid for the
good will of such plants, and also the expected combination or merger
value (aside from the value of the old machinery and tangible assets
combined together) it is difficult, if not impossible, to avoid the con-
clusion that the acquisition of the control of these existing plants,
which were in such shape as to justify their discontinuance within a
few years, had no cause or reason, except the purpose to take them
out of independent control. In other words, the plan and purpose
of establishing large new plants, concentrating a large capacity in
each of them, could not have been aided by the purchase of the
machinery and assets of smaller and older plants in widely separated
parts of the country, which were in such condition that it was thought
advisable to discontinue them within a short time after they were
purchased.
uiMiXJiJj STATJib bXiJJfiL. COBPOBATION. 3651
The intention of the organizers of the American Bridge Co. of New
Jersey in contracting to obtain control of the 36 concerns named in
the minutes of the directors of that company dated May 4, 1900, and
the intention of those in control of the United States Steel Corpora-
tion in subsequently absorbing the American Bridge Co., is greatly
illuminated by the eighth paragraph of the contract between the
American Bridge Co. of New Jersey and I. Gifford Ladd, approved
May 4, 1900 (Min. Dir. Am. B. Co. N. J.), which reads as follows:
Eighth. The party of the first part further agrees to procure and to deliver
to the Bridge Co. proper agreements in writing and in form acceptable to the
Bridge Co., executed by himself and the persons formerly connected as owners
or stockholders with the plants sold and transferred to the Bridge Co. hereunder
who may be designated by the Bridge Co. within 10 days from the dates as of
which possession of said plants, respectively, shall be delivered to the Bridge
Co., to the effect that the said party of the first part and said persons, respec-
tively, will not during the period of 20 years, directly or indirectly, without the
consent in writing of the Bridge Co., engage or be interested in the business of
bridge building or manufacturing or selling structural iron and steel, either indi-
vidually or as copartners in any firm, or as agents for others, or as officers,
directors, ' or stockholders of any corporation or association other than the
Bridge Co. or its successors, in any State, District, or Territory of the United
States or any of its possessions, except the Territory of New Mexico.
The United States Steel Corporation, by obtaining control of the
American Bridge Co. of New Jersey, got the power to enforce this
contract for 20 years, excluding from competition all of the individ-
uals connected as owners or stockholders with the 36 odd concerns
absorbed by the American Bridge Co. of New Jersey who signed this
contract.
It appears also that on May 31, 1911, Mr. Eoberts, formerly in
the structural-steel business in the Pencoyd Works and considered by
Mr. Gary as an expert in all lines of steel manufacture (3-107), said
that the bridge companies outside of the American Bridge Co., as
they were not combined together, " did not amount to much in a
competitive way" (U. S. S. C, Ex. Com. Min., May 13, 1901), and
the plan of Mr. Conger to combine them was not encouraged (id..
May 6 and May 13, 1901).
(A) Plants acquired. — ^Arrangements were made by the American
Bridge Co. of New Jersey in May, 1900j to acquire a large number of
plants, some of which were the following :
Edge Moor Bridge Works.
Post & McCord.
Berlin Iron Bridge Co.
Groton Bridge & Manufacturing Co.
Lassig Bridge & Iron Works.
Buffalo Bridge & Iron Works.
The New Columbus Bridge Co.
3652 UNITED STATES STEEL COEPOBATION.
Pittsburg Bridge Co.
Melton & Buchanan Co.
The Lafayette Bridge Co.
The Gillett-Herzog Manufacturing Co.
Elmira Bridge Co. (Ltd.).
Wrought Iron Bridge Co.
Xoungstown Bridge Co.
Koljen Iron Works.
The Union Bridge Co.
The A. & P. Roberts Pencoyd Works.
The American Bridge Works.
The Rochester Bridge & Iron Works.
The Hilton Bridge Construction Co.
Detroit Bridge & Iron Works.
The Keystone Bridge Works — Carnegie Steel Co.
Schultz Bridge Co.
J. G. Wagner Co.
Schiffler Bridge Co.
The Horseheads Bridge Co.
And also of the —
American Bridge Works, located at Chicago, 111.
The Bellefontaine Bridge Co.
Canton Bridge Co.
Chicago Bridge Co.
J. B. & J. M. Cornell.
King Bridge Co.
New Jersey Steel & Iron Co., Trenton, N. J.
Passaic Rolling Mill.
Penn Bridge Co.
Pittsburg Bridge Co.
Toledo Bridge Co.
Wisconsin Bridge & Iron Co.
(See minutes directors American Bridge Co. of New Jersey, May,
1900.)
(B) Valuation and consideration paid for various plants. — In the
minutes of the American Bridge Co., directors, May 4, 1900, it
appears that —
The committee on the purchase of the properties offered for sale by Mr. Ladd
presented the report of the committee, consisting of Messrs. E. H. McCord,
Frank Conger, Charles M. Jarvis, and F. M. Wyant, four gentlemen of reputa-
tion and ability, and great experience in the bridge-building and structural-iron
business, and that the said committee has received from them the following
report as to the value of said plants.
(Here follows a list of plants referred to above, Nos. 1 to 35. See
list, pp. 4167-4168, minutes of American Bridge Co.)
We are familiar with the "foregoing properties of plants and the business
which has been carried on therein. We are of opinion that no more desirable
or more modern or highly equipped plants could be purchased by your company
in connection with its proposed business. We have no hesitation in stating as
UNITED STATES STEEL COEPORATION. 3653
our opinion of their collective value that the said plants, exclusive of materials,
supplies, and contracts, are worth at least the sum of $61,000,000.
We have read the report of Mr. Stephen Little to Mr. I. GifCord Ladd, dated
this day, concerning the earnings of certain plants referred to in said report and
the business transacted therein, and of the usual profits in the business. We
beg to state that we fuUy concur with Mr. Little's conclusion that the net manu-
facturing profits of such plants that he enumerates for the year 1900 should be
upward of $6,000,000.
Yours, truly, Feank Congeb.
F. M. Wtant.
Wm. H. McCokd.
Chas. M. Jakvis.
It was agreed to issue for 35 of the plants referred to above
$20,499,000 par value preferred stock and $34^999,000 par value of the
common stock of the American Bridge Co., together with the sum of
$5,500,000 in cash.
The committee further reported that these plants, works, and
properties, and shares of stocks and bonds were in their opinion
necessary for the objects and business of the company and were fully
worth (exclusive of supplies, materials, and contracts) 'the pro-
posed purchase price of $60,098,000, and they recommended that Mr.
Ladd's proposition be accepted and that said agreement be entered
into for carrying out the agreement for the purchase ; and a resolution
adopting these views of the committee and providing for the pur-
chase was carried. (Minutes directors American Bridge Co., May 4,
1900.)
It appears by the minutes of the American Bridge Co., May 10,
1900, that Mr. Ladd found himself unable to deliver certain proper-
ties, to wit, the plants of the Bellefontaine Bridge Co., Canton
Bridge Co., Chicago Bridge Co., J. B. & J. M. Cornell, King Bridge
Co., New Jersey Steel & Iron Co., Passaic EoUing Mill Co., the Penn
Bridge Co., Toledo Bridge Co., and Wisconsin Bridge & Iron Co.,
and that a committee as appraisers, consisting of Louis L. Stanton,
Frederick P. Voorhees, and Edward M. F. Miller, determined that
$4,772,200 preferred stock and $4,772,200 common stock should be
withheld from Mr. Ladd on account of the present inability to deliver
these properties.
Later Mr. Ladd proposed to deliver 11,995 shares, being the entire
capital stock (except the shares to qualify directors) in the Detroit
Bridge & Iron Works,, and 1,995 shares, being all the capital stock
(except shares to qualify directors) of the Koken Iron Works, and
that for these properties and a large number of plants named above
there was paid to Ladd the sum of $5,500,000 in cash and certificates
for 157,268 shares of the preferred stock and 302,208 shares of the
common stock of the American Bridge Co. of New Jersey.
In the minutes of the directors of the American Bridge Co., May
21, 1900, it appears that it was determined by the appraisers above
3654 UNITED STATES STEEL CORPOBATION,
named that out of the sum withheld because of the nondelivery of
certain plants named that $400,000 of the preferred stock and
$300,000 of the common stock should be delivered to Ladd upon the
delivery of the property of the New Jersey Steel & Iron Co. to the
American Bridge Co.
Arrangements were also made to pay certain sums for materials,
and so forth, connected with plants to be transferred to the bridge
company.
In the minutes of the directors of the American Bridge Co., Jan-
uary 17, 1901, it appears that there was presented an agreement for
the purchase of 1,000 shares (except only a sufficient nimiber to
qualify directors) of the Alabama Bridge & Iron Co.
The purchase of 2,500 shares, being all the outstanding stock (ex-
cept sufficient shares to qualify directors) of the Toledo Bridge Co.,
for the sum of $1,050,000, payable as follows: $700,000 in preferred
stock and $350,000 in common stock of the American Bridge Co. of
New Jersey, and the assumption of the debts of the Toledo company
was ratified and approved. A statement referred to shows that
tlie capital stock of the Toledo Bridge Co. was $250,000, its total
assets $606,586, and unpaid dividends $18,375. (Minutes directors
American Bridge Co. of New Jersey, Apr. 18, 1901.)
The American Bridge Co. subscribed to 1,000 shares of the Cana-
dian Bridge Co. at $100 a share. (.Minutes of directors of American
Bridge Co. of New Jersey, May 16, 1901.)
The American Bridge Co. of New Jersey leased the plants of the
New Jersey Steel & Iron Co. for an amount equal to 50 per cent on
the dividends on the stock of the New Jersey company.
The Empire Bridge Co. bought from the American Bridge Co. of
Xew Jersey its Albany plant, Brooklyn plant, Buffalo plant, Elmira
]ilant, Groton plant, Horseheads plant, and Rochester plant for
$2,996,500 par value of the capital stock of the Empire Bridge Co.
(See minutes directors American Bridge Co. of New Jersey, Oct.
28, 1901.)
The Detroit Bridge & Iron Works was purchased for $600,000.
(Minutes directors American Bridge Co. of New Jersey, Nov. 12,
1901.)
The Keystone Bridge plant was acquired by the American Bridge
Co. for $2,000,000 preferred stock and $1,000,000 of common stock
April 23, 1900. (Carnegie Co. Dir. Min. Apr. 23, 1900.)
The stock of the American Bridge Co., including $31,348,000 of
preferred stock and $30,946,400 common stock, or $62,294,400 in all,
wsLS exchanged for $34,482,800 preferred and $32,493,720 common
stock, or $66,976,520 in all, of the United States Steel Corporation;
but this capitalization was reduced after Steel Corporation got the
property to only $10,000,000.
UNITED STATES STEEL COEPOEATION. 3655
The United States Steel Corporation acquired the stock of the
American Bridge Co. on or about April 1, 1901. (See U. S. S. C. Dir.,
3d meeting, Apr. 1, 1901.)
(C) Expenditures for and estdblishment of new plants. — The con-
solidation of five plants at Pittsburgh was suggested, according to
the minutes of the directors of the American Bridge Co., February
21, 1901.
On October 29, 1902, it was resolved to construct the Ambridge
plant at Economy, Pa., to cost $2,677,000. (Minutes directors Ameri-
can Bridge Co. of New Jersey.)
In February, 1903, the Gary and Ambridge plants were under con-
struction, as is stated in the statement made by the United States
Steel Corporation giving reasons for abandonment of plants (see
my report Dec. 4, 1911) in connection with Schultz plant.
(D) Discontinuance of plamAs. — On June 20, 1901, it was re-
solved that the Groton plant be shut down as soon as it can be done
consistently with the work now in process of manufacture at that
plant. (Minutes directors American Bridge Co. of New Jersey.)
On September 20, 1901, it was resolved that the American Bridge
Co. of New Jersey approve of the dissolution of the Alabama Bridge
& Iron Co.
In October, 1901, the Groton plant was abandoned, and the reason
for abandonment given in the statement of the United States Steel
Corporation, submitted with my letter of December 4, 1911, to the
committee, was as follows : " Poorly located and costs too high to
economically operate."
As to this Groton plant, as well as to five others of the plants
mentioned below, the statement above referred to presents the fol-
lowing additional reason for abandonment:
The tonnage output of these six plants, abandoned because they were old,
obsolete and no longer profitable to operate, was transferred to and taken care
of by the new, modern, and up-to-date plant constructed by the company at
Elmira, N. Y. These six old plants served largely central and northern New
York State and New England. Elmira was chosen as the point of concentra-
tion, as nearly all raw steel from Pittsburgh for above territory is shipped
through Elmira. The new plant at Elmira has a capacity of 54,000 gross tons
annually.
The Groton plant is stated by the Steel Corporation to have been
built in 1880, and was therefore 20 years old when bought or acquired
in 1900 by the American Bridge Co., for the consideration, as above
stated, of over $60,000,000, in connection with the other plants above
named.
On November 11, 1902, the sale of the Walker plant was recom-
mended. (Minutes executive committee United States Steel Cor-
poration.)
3656 UNITED STATES STEEL COEPOBATION.
On December 30, 1902, the abandonment of the Rochester plant and
the sale of the property at the best price obtainable was recom-
mended. (Minutes finance committee United States Steel Corpora-
tion.)
In April, 1903, the Rochester plant at Rochester, N. Y., said by the
Steel Corporation to have a tonnage capacity of 6,400 tons at that
date, was abandoned. The reason given by the Steel Corporation is:
" Very old and obsolete ; buildings are ready to fall down ; could not
opferate profitably."
This plant was also one of the five plants as to which the explana-
tion was made as quoted above with relation to the Groton plant.
It is stated in the statement by the Steel Corporation that the
Rochester plant was built in 1872, and it was therefore 38 years old
when it was bought in 1900.
On July 24, 1903, the Schultz plant fixtures were sold and plants
in the vicinity of Pittsburgh were abandoned, in conjunction with
the construction of the Economy plant, known as the Ambridge plant,
at Economy, Pa.
On September 17, 1903, it was resolved to dismantle the Albany
plant. (Minutes directors Empire Bridge Co.)
In December, 1903, the Pittsburgh plant, Pittsburgh, Pa., which is
said by the Steel Corporation to have had an annual tonnage capacity
at that date of 16,000 tons, was abandoned. The reason given by
the Steel Corporation as to this plant and the Walker plant, aban-
doned April, 1904, and the Youngstown plant, abandoned May, 1904,
was:
These were all Pittsburgh district plants. All except the Walker plant were
old and very much run down, especially was this the case with the largest
one — Keystone. It was of an obsolete type and production cost excessively high.
Instead of rebuilding any or all of these plants it was concluded to concentrate
the output at a single plant in the Pittsburgh district. Accordingly the Am-
bridge plant (near Pittsburgh) was constructed and all available equipment
and facilities of the old plants removed to It. The Ambridge plant is modem
in every particular, and has an average capacity of 200,000 gross tons of
finished fabricated material.
It is stated by the Steel Corporation that the Pittsburgh plant was
built in 1878, so that in 1900, when bought or acquired by the Ameri-
can Bridge Co. it was 22 years old.
In March, 1904, the Albany plant, Albany, N. Y., was abandoned,
and the reason stated in the statement of the Steel Corporation is:
" Plant too small to permit profitable operation. Location and area
of site preclude building on enlarged scale."
And there was also added the explanation which was made in
reference to the Groton plant above.
UNITED STATES STEEL COEPOEATION. 3657
The Albany plant was built in 1880, as stated by the Steel Corpo-
ration, it was therefore 20 years old when bought or acquired by the
American Bridge Co. in 1900.
In April, 1904, the Horseheads plant, Horseheads, N. Y., was
abandoned, and the reason stated in the statement of the Steel Cor-
poration is : " Very small plant ; too expensive to operate. Tonnage
.output taken care of by new Elmira plant," and the explanation
made with reference to the Groton plant above was also referred to.
In the statement of the Steel Corporation it appears that the Horse-
heads plant was built in 1890, and it was therefore 10 years old when
bought or acquired by the American Bridge Co.
In April, 1904, the Buffalo plant, Buffalo, N. Y., was abandoned,
and the same reason for abandonment is set opposite this plant in the
statement of the Steel Corporation as that given for the Pittsburgh
plant. The Buffalo plant was buUt, as shown by the Steel Corpora-
tion's statement, in 1893, and was therefore 1 years old when bought
or acquired by the American Bridge Co. in 1900.
In April, 1904, the Walker plant, Pittsburgh, Pa., was abandoned,
and the same reason for abandonment is shown in the statement of
the Steel Corporation as that given for the Pittsburgh plant. It
appears in the statement of the Steel Corporation that the WaUter
plant was built in 1899 and had an annual tonnage capacity at the
date when abandoned of 15,000 tons, and when abandoned was 6
years old.
In May, 1904, the Youngstown plant, Youngstown, Ohio, was
abandoned, and the same reason for abandonment is set forth 141 the
statement of the Steel Corporation as that given with reference to
the Pittsburgh plant. It is stated in the statement of the Steel
Corporation that the Youngstown plant was built in 1889, and it
was therefore 11 years old when acquired by the American Bridge Co.
In May, 1904, the La Fayette plant. La Fayette, Ind., was aban-
doned. The reason for abandonment given in the statement of the
Steel Corporation is : " These were small highway-bridge plants ;
they were poorly arranged and their costs were high " (referring
also to the Columbus plant, Columbus, Ohio). An extension was
built to the Canton, Ohio, plant, and the tonnage capacity of the two
plants were transferred to and taken care of at that point. In the
statement of the Steel Corporation it appears that the La Fayette
plant was built in 1891. It was therefore 9 years old when pur-
chased by the American Bridge Co.
In February, 1905, the Keystone plant, Pittsburgh, Pa., was aban-
doned. It is stated in the statement of the Steel Corporation that the
Keystone plant was built in 1865, and it was therefore 35 years old
when bought or acquired by the American Bridge Co.
3658 UNITED STATES STEEL COKPOKATION.
In February, 1905, the Columbus plant, Columbus, Ohio, was aban-
doned, and the statement of the Steel Corporation gives the same
reason for abandonment as is stated above with reference to the La,
Fayette plant. It appears in said statement that the Columbus plant
was built in 1886, and it was therefore 14 years old when bought or
acquired by the American Bridge Co.
In December, 1907, the Athens plant, Athens, N. Y., was aban- .
doned. The statement of the Steel Corporation gives the reason for
abandonment as follows : " Plant old and obsolete ; btuldings danger-
ous, production costs high. Instead of rebuilding transferred output
to new Elmira plant as explained," and also refers to the explanation
given above with reference to the Groton plant.
By the said statement it appears that the Athens plant was built in
1869, and it was therefore 31 years old when bought or acquired by
the American Bridge Co.
In March, 1909, the Berlin plant at East Berlin, Conn., was aban-
doned. The statement of the Steel Corporation gives the same rea-
sons for abandonment as those given in connection with the Athens
and Groton plants above. By the said statement it appears that the
Berlin plant was built in 1869, and was therefore 31 years old when
bought or acquired by the American Bridge Co.
In February, 1903, the Schultz plant, McKees Kbcks, Pa., was said
to be destroyed by fire. By the statement of the Steel Corporation
it appears that the Schultz plant was built in 1856, and it was there-
fore 44 years old when bought or acquired by the American Bridge
Co., gnd it stood entirely upon leased ground. " Moreover, the ton-
nage capacity of these plants was taken care of by the new plants at
Ambridge and Gary which were under construction at the time of the
respective fires."
It also appears by the said statement that the Milwaukee plant was
built in 1875, and was therefore 25 years old when bought or acquired
by the American Bridge Co.
On March 15, 1910, it was resolved to sell the Alabama plant at
New Decatur, Ala., for not less than $14,000. (Minutes directors
American Bridge Co. of New Jersey.)
On March 15, 1910, it was resolved to sell the Toledo, Ohio, plant,
for not less than $5,500. (Minutes directors American Bridge Co. of
New Jersey.)
For this plant $1,050,000 had been paid two months after the
Ambridge plant was planned.
UNITED STATES STEEL COEPOEATION. 3659
7. In addition to the plants acquired in the early part of the
consolidation and those referred to above, a number of plants were
bought which were engaged in the steel business and allied lines in
the nine years of existence of the Steel Corporation.
Isolatedly considered, the purpose in acquiring independent con-
cerns may be entirely colorless, but when considered in connection
with the acquisition of other independent plants, admittedly or in-
ferably to terminate competition, the continued policy and practice
of acquiring control of companies engaged in its own lines of
business may be corroboratory of the conclusion that the intention
was to prevent competition of the concerns acquired, if not per se
indicative of such intention.
I. The Clairton Steel Co. was bought by the United States Steel
Corporation for $1,000,000, par value of second-mortgage bonds
(bought in the open market at $813,850) , and in addition the United
States Steel Corporation guaranteed the outstanding bonded in-
debtedness of the Clairton Steel Co., the St. Clair Furnace Co., and
the St. Clair Steel Co., amounting to $10,230,000.
Through the acquisition of the Clairton Steel Co. the United
States Steel Corporation obtained a contract from the Crucible
Steel Co., which formerly controlled the Clairton Co., in which the
Crucible Co. agreed that the leading interests would not engage in
competitive business. Before the acquisition of the Clairton Steel
Co. by the United States Steel Corporation the Clairton Co. made
steel billets for the Crucible Steel Co. Thus the Clairton Co., to
this extent at least, competed with the United States Steel Corpora-
tion in supplying a large customer. By the acquisition of the Clair-
ton Steel Co. the United States Steel Corporation removed it as a
competitor and transferred to itself, by the agreement above referred
to, the trade of the Crucible Steel Co. The contract provided that
the Crucible Co. should get its total requirements from the United
States Steel Corporation. (See minutes, United States Steel Cor-
poration, Mar. 19, 1903 ; Carnegie Steel Co. directors. May 2, 1904 ;
and the United States Steel Corporation directors. May 3, 1904.)
It is of interest in considering the effect of the acquisition of the
Clairton property to note that it was stated in the minutes of the
directors of the Carnegie Steel Co. (July 24, 1905) that that com-
pany could build a mill at Clairton for $300,000, in 60 days, which
would pay for itself in 2 months.
II. The Tennessee Coal, Iron & Kailroad Co. was acquired by
the United States Steel Corporation for $48,961,208.83, or, adding
cost of contruction work, November and December, 1907, at a total
cost of $49,946,095.57.
It was claimed great expense had to be incurred to make it profit-
able; that its cost was high (Frick estimated the shares as worth
3660 UNITED STATES STEEL COKPOKATION.
65, whereas par was paid for them) ; that its resources were unde-
veloped, and its plant needed much improvement; that it had sold
rails to Harriman at less than cost; and, in general, that its value
consisted greatly in its possibilities, rather than its actual efficiency
as a going concern. If these claims be true, it makes it still more
difficult to explain the purpose underlying its acquisition, if, as
urged by representatives of the Steel Corporation, any intent to
benefit by the removal of its possibilities from the competitive field
must be excluded from the consideration.
It may not be possible succinctly to state the true intention in
acquiring the Tennessee company, in a way which would be admitted
by the men in control of the Steel Corporation, inasmujch as it
appears to many experienced men who are also disinterested that the
intention which impelled its acquisition was merely the desire to
bring under the control of the Steel Corporation the great possi-
bilities for competition possessed by the Tennessee company. The
consequences of the acquisition should and must be held to have been
intended, even if the result so deduced conflicts with the intention
declared to be in the minds of those responsible.
III. Wyman & Gordon and H. W. Wyman were paid $25,000 to
withdraw from the rail bond business. (A. S. W. Co. Dir. Min.,
Sept. 9, 1902.)
IV. The Trenton Iron Co. was acquired by the United States Steel
Corporation (U. S. S. C. Fin Com., July 5-Sept. 27, 1904). This
company was said to be listed in the red book of the Wire Kope Asso-
ciation (10-574), and its plant consisted of a wire-rod mill and a
wire works for the manufacture of wire rope and similar products,
with a yearly capacity for the rod miUs of 18,000 gross tons (Report
Com. Corp., p. 256) , which company was also alleged to have been a
participant in the Wire Rope Association from January, 1908, to
January, 1909 (Government bill of complaint, pp. 51-52), and the
existence of which association between January, 1908, and January,
1909, was admitted. (Answer United States Steel Corporation, pp.
41-42.)
Viewing the production and efficiency of this plant, the Commis-
sioner of Corporations says it was insignificant compared to other
acquisitions by the United States Steel Corporation. The Steel Cor-
poration nevertheless considered the concern of sufficient importance
to acquire control of it for $500,000 cash. (July 5-Sept. 27, 1904,
U. S. S. C. Fin. Com, Min,)
V. The contract for the acquisition of the Union Steel Co. (which
is referred to above) was made between the United States Steel Cor-
poration and Messrs. A. W. Mellon, R. B. Mellon, W. H. Donner,
William Flinn, George W. Darr, John Stevenson, jr., and J. P-
—a^cnjLau B-LAiaei &j..iii.i!.ij COBPORATIOW. 3661
Whitla, as the vendors, on December 15, 1902, and, among other
things, after authorizing an issue of capital stock of $20,000,000 and
of $45,000,000 of bonds, provides:
Tenth. The vendors severally agree with the steel company that they respec-
tively will not within the United States or the Dominion of Canada for a period
of 10 years from December 1, 1902, engage directly or Indirectly in the manu-
facture of Iron or steel or articles made therefrom now manufactured by the
steel company, the production of furnace coke, or the mining or production of
Iron ore, except in the Territory of Arizona and State of Florida; excepting,
however, from the terms hereof the enterprises, if any, in which parties may
now respectively be engaged.
And by paragraph 11 of the agreement it was stipulated that the
individuals named have no ore properties other than those owned by
the Union and Sharon concerns.
VI. It was seen that the contract with the Crucible Co. provides
that the leading interests would not engage in competitive business,
and the Crucible Co. would take all their requirements from the
United States Steel Corporation, and by the contract between the
Crucible Steel Co. and the Carnegie Steel Co., April 30, 1904, the
Crucible Co. in buying Bessemer and basic pig iron and Bessemer and
basic billets agreed :
Eighth. It Is made a condition of this contract that the buyers shall not re-
sell any of the material furnished hereunder without first putting it through a
process of manufacture at their works.
VII. A contract was also made with Pittsburg Steel Co. by the
Carnegie Steel Co., approved by the United Steel Corporation to
supply their entire supply of billets, etc. (U. S. S. C. Fin. Com., Apr.
11, 1905, U. S. S. C. Dir., Apr. 25, 1905), and contained a restrictive
covenant similar to that just quoted as to the contract with the Cru-
cible Co.
VIII. The United States Steel Corporation paid $18,500,000 in its
stock for a one-sixth interest, representing $421,700 in the stock of
the Oliver Iron Mining Co. The one-sixth interest had been held
by the Oliver & Snyder Steel Co. This interest had been held by
an independent company, and its acquisition terminated its right to
mine this ore. This one-sixth interest had been held at a much less
valuation, and in fact the five-sixths already owned was carried at
$2,167,000 on the books of the Carnegie Co., as appeared by an affi-
davit of its auditor, J. J. Campbell. (See Kept. Com. Corp., pp. 114,
156, 157, 187.)
IX. The concern controlled by Mr. Oliver contracted with the
United States Steel Corporation, through one of its subsidiaries, to
exchange its coke for the Steel Corporation's billets, and this contract
is said in ,the minutes to have the effect of removing the Oliver con-
cern as a competitor in selling coke. (U. S. S. C. Ex. Com., May
2, 1901.) See also minute of similar contract with Oliver Iron & Steel
Co. in minutes of directors of Carnegie Steel Co., June 27, 1904.
at)52 UNITED STATES S^^^^^PWIM
X. The contract between the Carnegie Steel Co. and the Ameri-
can Tinplate Co. entered into in January, 1899, and precluding com-
petition between them until after 1903 ; the contract of the Carnegie
Steel Co. to remain out of the bridge-building business ; the contract
of the American Steel Hoop Co. to pay the Illinois Steel Co. to stay
out of the cotton-tie business ; the structural-steel agreement, whereby
the New Jersey Iron & Steel Co. were paid $5,000 a month to abstain
from making certain structural steel should all be referred to here,
because the operation of these contracts has been perpetuated in sub-
stance by the consolidation of these concerns. These agreements be-
tween two or more of the concerns consolidated into the United
States Steel Corporation must also be kept in mind if we desire to
understand the intention underlying the later acquisitions of inter-
ests in other concerns by the various subsidiary companies.
XT. As we saw above (par. 6, Subd. II), the acquisition of the
American Bridge Co. gave the United States Steel Corporation the
benefit of enforcing the contract approved in connection with the
acquisition of the thirty-six-odd bridge plans named in the minutes
of the American Bridge Co. of New Jersey directors May 4, 1900,
which provided, among other things, as follows :
" Eighth. The party of the first part further agrees to procure and
to deliver to the bridge company proper agreements in writing and
in form acceptable to the bridge company, executed by himself and
the ]Dersons formerly connected as owners or stockholders with the
plants sold and transferred to the bridge company hereunder, who
may be designated by the bridge company, within 10 days from the
dates as of which possession of said plants, respectively, shall be deliv-
ered to the bridge company, to the effect that the said party of the
first part and said persons, respectively, will not, during the period
of 20 years, directly or indirectly, without the consent in writing of
the bridge company, engage or be interested in the business of bridge
building or manufacturing or selling structural iron and steel, either
individually or as copartners in any firm or as agents for others, or
as officers, directors, or stockholders of any corporation or associa-
tion other than the bridge company or its successors, in any State,
District, or Territory of the United States, or any of its possessions,
except the Territory' of New Mexico.'"
The United States Steel Corporation, by obtaining control of the
American Bridge Co. of New Jersey, got the power to enforce this
contract, excluding from competition for 20 years all of the indi-
viduals connected as owners or stockholders with the thirty-six-odd
concerns absorbed by the American Bridge Co. of New Jersey, who
signed this contract.
It appears also that in May 31, 1911, that Mr. Eoberts, formerly in
the structural steel business in the Pencoyd works, and considered by
.— „ CORPOKATIOW. 36G3
Mr. Gary as an expert in all lines of manufacture (3-107), said that
the bridge companies outside of the American Bridge Co., as they
then were not combined together, " did not amount to much in a
competitive way" (U. S. S. C. Ex. Com. Min., May 13, 1901), and
the plan of Mr. Conger to combine them was not encouraged (id.,
May 6 and May 13, 1901).
As stated above, the acquisitions isolatedly considered may be of
little significance, but they must be viewed in their collective effect.
8. A list of the plants and securities of companies in various lines
of business related to that of the United States Steel Corporation and
its subsidiaries which have been acquired by the United States Steel
Corporation in the nine years and nine months of its existence, or by
its subsidiary companies (in addition to those enumerated above)
will be set out hereunder as far as the same can be made up from
extracts from the minute boolfs ; but a complete list will be requested
from the United States Steel Corporation, and will be submitted in a
supplement to this report.
An investigation of the proportion of the consideration paid in
each case, which was in compensation for tangible assets, as com-
pared to the proportion which was in compensation for intangible ele-
ments of value, which more readily, if not entirely, embrace the com-
petitive possibilities, features, and activities of the acquired concerns,
will be conceded to be important in any complete or valuable investi-
gation, in view of the pronouncement of 'the Commissioner of Cor-
porations in his survey of the steel industry, to the effect that the
three especially important features of the industrial consolidations in
the steel business have been (p. 4, et seq.) :
(1) The restriction of competition tlirough combination.
(2) Integration; that is, the linliing up of productive processes through acqui-
sition under one control of raw materials and manufacturing plants (and in
some cases transportation facilities) and through extensions and coordination
of manufacturing processes.
(3) The creation of a great amount of inflated securities. The influence of
all these factors should be kept clearly in mind. The first, namely, the re-
striction or elimination of competition was the most important. Undoubtedly
it was the principal cause of most consolidations in the steel industry.
(P. 7.) The fundamental causes of the formation of the United States Steel
Corporation were substantially the same as those which gave rise to the earlier
consolidations already described, namely, restriction or prevefltion of competi-
tion ; integration ; stock inflation. The same causes, though in varying degree,
were here present, and the same processes were here repeated, though in a
more comprehensive manner and on a vaster scale.
If we apply these three causes of consolidation to the absorption of
the plants already named and those to be referred to hereafter, we
think it will be seen that in almost all cases the first cause stated —
that is, restriction of competition — will offer the only sensible expla-
nation of the absorption.
36(54 UNITED STATES Sl^^^ w^ -=
As to a few notable instances, i. e., the Tennessee Co. and the Union
Co., the second element, or the acquisition of raw materials is present.
And as to the Union Co., indirectly, the third element of the issue
of a great amount of inflated securities may be said to enter, in view
of the facts: that the ore and coal held by that company was much
overvalued; that the capacity was of no account compared to that
already possessed by the Steel Corporation, or easily procurable by
new construction for less expense ; that the stock was increased from
$1,000,000 to $20,000,000 and the bonded debt increased to $45,000,000,
before the acquisition by the Steel Corporation; and the company
was backed by strong financial interests in Pittsburgh, notably the
Mellons and Mr. Frick and others.
But as to the acquisition of control of the Shelby, Clairton, Troy,
Trenton, Griswold, and Wyman concerns, and also the —
Lamb Wire Co.,
Page Woven Wire Co.,
DeKalb Fence Co.,
Anthony Fence Company —
and the plants formerly of the —
Berlin Iron Bridge Co.,
Buffalo Bridge & Iron Works,
Groton Bridge Building Co.,
Hilton Bridge Construction Co.,
Horseheads Bridge Co.,
Koken Iron Works,
Lafayette Bridge Co.,
Pittsburg Bridge Co.,
Kochester Bridge & Iron Works,
Union Bridge Co. (Athens, Pa.),
Youngstown Bridge Co.,
Toledo Bridge Co.,
Alabama Bridge & Iron Co.,
Indiana Wire Fence Co.,
Garden City Wire & Spring Co.,
Cincinnati Barb Wire Fence Co.,
Portage Iron Co., Duncansville, Pa.,
Newburgh Wire & Nail Co.,
Puget Sound Wire Nail & Steel Co.,
Garwood Seamless Tube Co.,
Brewer Tube Co.,
Mansfield Machine Works,
United States Cold Drawn Steel Co..
Newcastle Tube Co.,
Baltimore Tin Plate Co.,
Blairsville Polling Mill & Tin Plate Mill,
Cincinnati KoUing Mill & Tin Plate Co.,
yj^-ixj-i^u ox^xJiO OiJUJiU CORPORATION. 3665
and the plants formerly of the —
Neshannock Sheet & Tin Plate Co.,
Hamilton & Co.,
Marshall Bros. & Co.,
Cumberland Steel & Tin Plate Co.,
Corning Steel Co.,
P. H. Laufman & Co. (Ltd.),
Pittsburg Steel Manufacturing Co.,
West Penn Sheet Steel "Works,
Coshocton KoUing Mill Co. —
it seems clear that they were absorbed and consolidated for the re-
striction of competition, because all of these plants were immediately
closed upon acquisition or not operated (Eept. Com. Corp., p. 106)
or added only a negligible fraction to the Steel Corporation's effi-
ciency compared to that already possessed or which much less expen-
sively could be supplied by new construction or, having a small
independent production, were merely removed from independent
control, without appreciably affecting the existing productivity,-
efficiency, or integration of the Steel Corporation; and, when con-
sidered collectively with many similar instances of absorbing and
combining separate small plants, lead to the conclusion that the ob-
ject in view was the restriction of competition rather than either of
the other two elements set forth by the Commissioner of Corpora-
tions.
In connection with these acquisitions and operations, it should be
borne in mind that the aggregate cash balance of the Steel Corpora-
tion is said to have equaled $75,000,000 (3-132; 20-1425).
COMPANIES IN STEEL AND ALLIED BUSINESSES.
Canadian Bridge Co., stock control and directors to be nominated
by American Bridge Co. of New Jersey by agreement with Francis
C. McMath and Burnham S. Colburn (directors Am. B. Co., N. J.,
May 16, 1901).
Lamb Wire Co. bought by American Steel & Wire Co. (Directors'
min., Apr. 21, 1902.)
Bellaire Steel Co. $150,000 of bonds of, at par or better, to be
bought. (U. S. S. C. fin. com.. May 6, 1902.)
Page Woven Wire Co., purchase of, was referred to committee.
(Am. S. & W. Co. Dir. min. July 15, 1902.)
Youngstown Iron, Sheet & Tube Co., 2,000 shares of stock of, pur-
chased from Frick for $211,196, promissory notes at 5 per cent five
years. (U. S. S. C. fin. com., Feb. 17, 1903.)
Lowellsville Limestone Co., 51 per cent of stock and assets taken
over by Mahoning Limestone Co. (C. S. Co., dir. min., Feb. 5, 1906.)
31572— No. 53, pt. 1—12 5
3666 UNITED STATES STEEZrTJUiirXTixBnn^rrr-.
DeKalb Fence Co., entire capital stock of, and Union Fence Co.,
500 shares bought for $275,000. (A. S. W. Co., dir. min., Mar. 16,
1909.)
Michigan Iron & Land Co., acquisition of 400,000 acres of, referred
to committee. (U. S. S. C. Fin. Com., Dec. 22, 1909.)
Anthony Fence Co., bought for $200,000. (A. S. W. Co., dir.,
Jan. 21, 1910.)
American Eefractories Co., application for loan of $250,000 re-
ferred to chairman aijd president with power. (U. S. S. C. fin. com.,
Sept. 27, 1910.)
J. B. & J. M. Cornell owes Carnegie Steel Co. $50,880.64, and
Frederick J. Home is to execute voting trust agreement. (C. S. Co.
dir. min., July 3, 1911.)
Pittsburgh Coal Co., acquisition of 7,500 acres coking coal and
River Coal Co. acquisition of 8,000 acres coking coal contract. (See
4^169.)
Cramp Ship Building & Engine Co., $500,000 subscription for 5
•per cent notes of. (C. S. Co., dir. min., May 4, 1903. U. S. S. C.
supplementary extract of Fin. Com., Mar. 8, 1904.)
RAILROAD COMPANIES.
Pennsylvania Co., $5,000,000, 18 months 4J per cent notes sub-
scribed for. (U. S. S. C. fin. com.. May 15, 1906.)
New York, Chicago & St. Louis 4 per cent bonds to be bought up
to $1,000,000. (U. S. S. C. fin. com.. May 29, 1906.)
Union Pacific Ry. Co., $2,000,000 loaned to. (U. S. S. C. fin. com.,
July 24, 1906.)
Union Pacific Ry. Co., $5,000,000 loaned to. (U. S. S. C. fin. com.,
Aug. 14, 1906.)
^^y±j.^u cx^ijio ojLJiijLjj COEPOEATION. 3667
9. Financial and corporate relations of the United States Steel
Corporation with concerns in various lines of business similar to
those controlled by the steel corporation, but which concerns are
known as independent concerns.
INTERLOCKING DIRECTORS AND STOCK OWNERSHIP.
I. Stocks in 18 ginning companies were acquired by the Carnegio
Steel Co. and were to be sold June 8, 1909, at a marked-down value.
It is stated that " when they were acquired we did not expect that
we would realize anything on them."
But it appears that the reason for acquiring the stocks is explained
as follows:
These are stocks of the companies wlilcli favored square bales for cotton and
used our cotton ties exclusively, and they were taken vyitti a view to helping
them along. When they were acquired we did not expect that we would realize
anything on them, and as the purpose for which they were taken has now been
accomplished, as evidenced by the fact that the shipments of cotton ties this
year amount to about 2,500,000 bundles, we may as well sell them. I would
offer a resolution, therefore, that the treasurer of this company be, and hereby
he Is, authorized, subject to the approval of the finance committee of the cor-
poration, to dispose of all these stocks at the best price to be obtained.
Motion was carried.
Tt does not appear from the data now before us whether the finance
committee of the corporation decided to part with these stocks.
II. The American Can Co. is, as far as known, wholly independent
from the steel corporation, except that certain directors of the steel
corporation are also directors of the can company. This is the only
connection between them known.
As early as May 9, 1901, it seems to be recognized "that special
prices should be voted if the American Can Co. could not succeed,"
because of the large amount which it bought from the American
Tinplate Co., one of the subsidiaries of the steel corporation.
On April 17, 1902, the following appears :
The president stated that the glucose company were large users of tin cans
and were thinking of making them themselves ; that this would mean a loss
of a very large tin-plate business to our tin-plate company ; that the can com-
pany has received a proposition with reference to prices and the can company
would like to enter Into some sort of a sliding-scale agreement with the Ameri-
can Tin Plate Co. for this one order. The president stated that the following
proposition was involved : The can company agrees to take our auditor's ac-
count of the cost of tin plate, providing we give them half of the profit we may
have above the cost; they also would give us half of the profit they make
above the cost. The president Is not willing to do this as a general thing, but
thinks it might be good policy for this one order ; and that It is to our Interest
to tie every customer to the American Can Co. that we can. It is provided
that if the can company makes a loss, we do not help to make that up. The
president stated that such an arrangement will not get us into trouble with any-
3668 UNITED STATES STEEL CORPOKATIOJM .
one else, and that he thinks it is a splendid arrangement. It is a flve-year
contract.
On motion duly seconded it was voted that this be approved.
Later negotiations were referred to Corey, Gary, and Ream (Jan.
4, 1904), but the president reported (July 13, 1904) that the negotia-
tions with the American Can Co. had been dropped, " at all events,
for the present."
A five-years' contract, executed on or about April 17, 1902, would
expire April, 1907, unless otherwise terminated, but it is not known
what arrangements exist at present.
III. In the reference to the acquisition of the Union Steel Co.
above, it will be seen that the connection of Mr. Frick with that com-
pany, he being at that time a director of the United States Steel
Corporation, is referred to by the Commissioner of Corporations as
an element which led to the acquisition of the Union Steel Co. by the
United States Steel Corporation. It was there said, quoting from
page 254 of the Report of the Commissioner of Corporations :
There can be no doubt that the probable motive of the steel corporation was
to prevent the competition which the rapidly extending operations of the Union
concern foreshadowed, and especially to eliminate the rivalry of Mr. Frick.
And from same report, page 286 :
The real significance of the transaction seems to be that the steel corporation
desired to eliminate the competition of certain financial interests back of the
Union concern, particularly that of Mr. Frick, and that the amount necessary
to induce these owners to retire from such competition was, in effect, charged
against the ore and coal.
IV. In the reference to the Troy Steel Products Co. above, it
appears that John D. Rockefeller and H. H. Rogers, who were con-
nected with the Standard Oil Co., were interested in the Troy Steel
Products Co. and were at that time directors in the United States
Steel Corporation. It also appears above that the Standard Oil Co.
had purposed to complete its own pipe mills in July, 1902 (see United
States Steel Corporation executive committee minutes, July 15, 1902,
statement with reference to Mr. Rogers), and that the purchase of
the Troy plant was approved in December of the same year, although
it was never operated.
V. In March, 1909, in the minutes of the directors of the Carnegie
Steel Co., it is stated that " one inquiry is from the Argentine Re-
public for 34,000 tons, and as J. P. Morgan & Co. are financing the
proposition this tonnage will undoubtedly come to us." It will be
noted that Mr. J. P. Morgan was a director of the United States
Steel Corporation at that time.
VI. In the minutes of the directors of the Carnegie Steel Co., April
30, 1901, it is stated that a price of 1.5G cents was given to Mr. Arnold
of the National Transit Co. (which was a branch of the Standard
UNITED STATES STEEL COKPORATION. 3669
Oil Co.), which was considered too low by Mr. Bope, of the Carnegie
Co., but it was stated:
Personally I think these prices are too low, but knowing the connection of the
Standard Oil Co. with the new organization and that it is the wish of President
Schwab that these people be properly treated, I think perhaps some concession
should be made to Mr. Arnold. I should like to have the views of the board on
the subject.
It appears that the price of 1.50 cents was made. It will be noted
that Mr. John D. Rockefeller and Mr. Henry H. Rogers were early
directors of the United States Steel Corporation.
VII. Advance payments were made to the Allis-Chalmers Co. on
account of contracts set forth, as appears in the minutes of the di-
rectors of the Carnegie Steel Co., September 2, 1907, and $200,000
was loaned to the Allis-Chalmers Co. by the United States Steel Cor-
poration upon accounts receivable and bonds. (See minutes directors
Carnegie Steel Co., Sept. 2, 1907, and minutes United States Steel
Corporation finance committee, Sept. 17, 1907, p. 722.)
It appears that Mr. E. H. Gary was a director in both the Allis-
Chalmers Co. and the United States Steel Corporation at the times
referred to.
VIII. On October 1, 1907, the finance committee of the United
States Steel Corporation voted to advance to the Westinghouse
Machine Co. $200,000 on account of contract. It will be noted that
Mr. Converse, who was then a director of the United States Steel
Corporation, is a director in the Westinghouse Electric & Manu-
facturing Co.
IX. And as to the United States Steel Corporation itself, one
matter under this heading that has been reviewed in the evidence
before this committee is summed up by the Commissioner of Corpo-
rations.
After referring to the syndicate managed by J. P. Morgan & Co.,
at page 245, in these words :
There can be no question that this huge compensation to the syndicate, or, in
other words, the enormous block of stock upon which this profit was realized,
was greatly in excess of a reasonable compensation —
The report states at page 247 —
In this connection it is also proper to point out that the syndicate managers
were prominently identified with the management of several of the companies
acquired by the Steel Corporation, and also with the management of that corpo-
ration itself. Three partners of the firm were on the directorate of the corpora-
tion, one of whom was also chairman of the finance committee. Moreover,
several other leading interests in the underwriting syndicate were the heads
of some of the companies acquired and members of the first board of directors
of the corporation. In other words, as managers of the Steel Corporation these
various Interests virtually determined the compensation for their services as
underwriters.
3670 UNITED STATES STEEL COBPOBATION.
X. Edward T. Stotesbury was a director in the Pennsylvania
Steel Co. and in the Cambria Steel Co., and also a partner in the
firm of J. P. Morgan & Co., and Mr. J. P. Morgan and Charles
Steele and J. P. Morgan, jr., are directors in the United States Steel
Corporation.
XI. Henry Walters and Samuel Mather (5-222), both directors in
the United States Steel Corporation, were also directors in the Lacka-
wanna Steel Co.
XII. Percival Eoberts, jr., Henry C. Frick, George F. Baker,
Norman B. Eeam, and Cle;nent Griscom were directors of the United
States Steel Corporation and also directors in the Pennsylvania Rail-
road, which latter company has a controlling interest in the Penn-
sylvania Steel Co. and the Cambria Steel Co. (6-331).
OFFICERS AND DIRECTOES OF THE UNITED STATES STEEL CORPORATION.
Chairman of board and chairman of finance committee, E. H. Gary. i
President, W. B. Corey.
First vice president, W. B. Dickson.
Second vice president, David G. Kerr.
Secretary and treasurer, Richard Trimble.
General counsel, Francis Lynde Stetson.
Assistant secretary, Thomas Murray.
Assistant treasurer, H. G. Hay.
Comptroller, W. J. Filbert.
Assistant comptroller, Joseph H. Craig.
DIRECTORS.
Term Expires. ■ Term Expires.
Balier, George F 1911 Perkins, George W 1910
Clifford, Alfred 1910 Phipps, Henry 1910
Converse, E. C 1910 Ream, Norman B 1912
Corey, W. E 1911 Reed, James H 1912
Frlck, Henry C 1912 Reld, Daniel G 1911
Gary, Elbert H 1910 Roberts, Persival, jr 1912
Griscom, Clement A 1911 Rockefeller, John D., jr 1912
Mather, Samuel 1911 Steele, Charles 1912
Moore, William H 1912 Thayer, Nathaniel 1911
Morgan, J. P 1910 Walters, Henry 1911
Morgan, J. P., jr 1910 Widener, P. A. B 1912
Morrison, Thomas 1910 Winsor, Robert 1912
The following of said oiEcers and directors are also directors of the
following companies:
Baker, George F.
Adams Express Co., the, member of board managers.
American Telephone & Telegraph Co., director.
Astor Trust Co., director.
Atlas Portland Cement Co., the, director.
Bankers' Safe Deposit Co., vice president and trustee.
Bowery Savings Bank, the, trustee.
Car Trust Investment Co. (Ltd.), London, director.
UNITED STATES STEEL COEPOBATION. 3671
Baker, George F. — Continued.
Central Railroad Co. of New Jersey, the, director.
Chase National Bank, the, director.
Chicago, Burlington & Quincy Railroad Co., director.
Cincinnati, Hamilton & Dayton Railway Co., director.
Colorado & Southern Railway Co., director.
Consolidated Gas Co. of New York, trustee.
Continental Insurance Co., the, director.
Delaware, Lackawanna & Western Railroad Co., member of board of
managers.
East Jersey Water Co., director.
Erie Railroad Co., director.
Farmers' Loan & Trust Co., the, director.
First National Bank of Chicago, director.
First National Bank of New York, chairman of the board of directors.
First Security Co. of the City of New York, president and director.
Guaranty Trust Co. of New York, director.
Industrial Trust Co., Providence, director.
International Harvester Co., director.
Jersey City Water Supply Co., vice president and director.
Lake Erie & Western Railroad Co., the, director.
Lake Shore & Michigan Southern Railway Co., the, director.
Lehigh & Wilkesbarre Coal Co., director.
Lehigh Valley Coal Co., director.
Lehigh Valley Railroad Co., director.
Liberty National Bank, the, director.
Manhattan Trust Co., director.
Metropolitan Opera & Real Estate Co., president and director.
Michigan Central Railroad Co., the, director.
Mohawk & Malone Railway Co., director. '
Montclair Water Co., the, director.
Morton Trust Co., director.
Mutual Life Insurance Co., of New York, the, trustee.
National Bank of Commerce in New York, director.
New Jersey General Security Co., president and director.
New York & Harlem Railroad, director.
New York & Long Branch Railroad Co., president and director.
New York & Putnam Railroad Co., director.
New York Central & Hudson River Railroad Co., director.
New York, Chicago & St. Louis Railroad Co., director.
New York Clearing House Building Co., director.
New York Mutual Gas Light Co., the, director.
Newport Trust Co., director.
Northern Pacific Railway Co., director.
Northern Securities Co., second vice president and director.
Pennsylvania Coal Co., director.
Pere Marquette Railroad Co., director.
Provident Loan Society of New York, the, trustee.
Pullman Co., the, director.
Spring Brook Water Supply Co., director.
United States Steel Corporation, director.
West Shore Railroad Co., director.
3672 UNITED STATES STEEL COBPOEATION,
Converse, Edmund C.
AUis-Clialmers Co., director.
American Bank Note Co., director.
American Can Co., director.
Astor Trust Co., president and director.
Bankers' Trust Co., president and director.
Coronet Phosphate Co., president and director.
Fidelity Fire Insurance Co., director.
Fourth Street National Bank, Philadelphia, director.
Hudson & Manhattan Railroad Co., director.
International Nickel Co., director.
International Smelting & Eefinlng Co., director.
Inter-Ocean Steel Co., director.
Interstate Investing Co., director.
Kewanee Oil & Gas Co., director.
Liberty National Bank, the, director.
Manning, Maxwell & Moore (Inc.), director.
McKeesport Connecting Railroad, director.
Mohican Oil & Gas Co., vice president.
National Supply Co., Toledo, director.
National Tube Co., director.
National Tube Works Co., director.
Phoenix Insurance Co., of Brooklyn, director.
Sheffield Coal & Iron Co., director.
Texas & Pacific Coal Co., director.
Union Trust Co., Pittsburgh, director.
United Bank Note Corporation, president and director.
United States Steel Corporation, director.
West Pennsylvania Railways, chairman of the board of directors.
Westlnghouse Electric & Manufacturing Co., director.
Corey, William E.
American Mining Co., director.
American Sheet iSc Tin Plate Co., director.
American Steel & Wire Co., of New Jersey, director.
Birmingham Southern Railway Co., director.
Carnegie, Phlpps & Co. (Ltd.), director.
Carnegie Steel Co., director.
Carnegie Steel Co. (Ltd.), the, director.
Carnegie Steel Co., of Pennsylvania, director.
Clalrton Steel Co., director.
Chicago, Lake Shore & Eastern Railway Co., director.
Connellsville & Monongahela Railway Co., director.
Duluth & Iron Range Railroad Co.. director.
Edgar Zinc Co., director.
Elgin, Joliet & Eastern Railway Co., director.
Federal Steel Co., director.
Gary Land Co., director.
H. C. Frick Coke Co., director.
Illinois Steel Co., director.
Minnesota Steel Co., director.
Minnesota Iron Co., director.
Mount Pleasant Water Co., director.
National Tube Co., director.
National Tube Works Co., director.
UNITED STATES STEEL CORPORATION. 3673
Corey, William E. — Continued.
Pittsburg Steamship Co., director.
Sharon Tin plate Co., director.
Shelby Steel Tube Co., director.
Tennessee Coal, Iron & Railroad Co., director.
Trotter Water Co., director.
Troy Steel Products Export Co., director.
Union Steel Co., director.
United States Coal & Coke Co., director.
United States Steel Products Export Co., director.
Youghiogheny Northern Hallway Co., director.
Frick, Henry C.
Chicago & Northwestern Railway Co., director.
City Deposit Bank, Pittsburgh, director.
Mellon National Bank, Pittsburgh, director.
National Union Fire Insurance Co., Pittsburgh, director.
Pennsylvania Railroad Co., the, director.
Philadelphia & Reading Coal & Iron Co., director.
Philadelphia & Reading Railway Co., director.
Reading Co., director.
Union Insurance Co., Pittsburgh, director.
Union Pacific Railroad Co., director.
Union Trust Co. of Pittsburg, the, director.
United States Steel Corporation, director.
Gary, Elbert H.
Allis-Chalmers Co., chairman of the board of directors and member of
finance committee.
American Bridge Co., director.
American Bridge Co. of New York, director.
American Sheet & Tin Plate Co., director.
American Steel & Wire Co. of New Jersey, director.
American Steel Foundries, director.
American Trust & Savings Bank, Chicago, director.
Bessemer & Lake Erie Railroad Co., director.
Bullock Electric Manufacturing Co., director.
Carnegie Steel Co., director.
Chicago, Lake Shore & Eastern Railway Co., director.
Commercial National Bank of Chicago, director.
Duluth & Iron Range Railroad Co., director.
Duluth, Missabe & Northern Railway Co., director.
Elgin, Joliet & Eastern Railway Co., director.
Empire Bridge Co., director.
Federal Steel Co., president and director.
Gary-Wheaton Bank, Wheaton, 111., president and director.
H. C. Frick Coke Co., director.
Hudson & Manhattan Railroad Co., director.
Illinois Steel Co., director.
International Harvester Co., director.
Lake Superior Consolidated Iron Mines, director.
Merchants Loan & Trust Co., Chicago, director.
Minnesota Iron Co., director.
Minnesota Steel Co., director.
National Tube Co., director.
Newburg & South Shore Railway Co., director.
3674 UNITED STATES STEEL CORPOKATION.
Gary, Elbert H. — Continued.
New York Trust Co., member of executive committee and director.
Oliver Iron Mining Co., director.
Phoenix National Bank of the City of New Tork, The, director.
Pittsburgh, Bessemer & Lake Erie Railroad Co., director.
Pittsburgh Steamship Co., director.
Southern Railway Co., director.
Tennessee Coal, Iron & Railroad Co., director.
Union Steel Co., director.
United States Coal & Coke Co., director.
United States Natural Gas Co., director.
United States Steel Products Export Co., director.
Universal Portland Cement Co., director.
Grlscom, Clement A., jr., president and director of the Griscom-Spencer Co.
American Finance & Securities Co., The, director.
Bell Pure Air & Cooling Co., president and director.
Development Co. of America, The, director.
El Tiro Copper Co., director.
Empire Trust Co., director.
Guanajuato Reduction & Mines Co., The, vice president and director.
New York Real Estate Security Co., director.
Reilly Heater & Evaporator Co., director.
Moore, William H.
American Can Co., director.
Chicago & Eastern Illinois Railroad Co., director.
Chicago, Rock Island & Pacific Railroad Co., director.
Chicago, Rock Island & Pacific Railway Co., director.
Delaware, Lackawanna & Western Railway Co., director.
Evansville & Indianapolis Railroad, director.
Evansville & Terre Haute Railroad Co., director.
Evansville Belt Railway Co., director.
Fidelity Fire Insurance Co., director.
First National Bank of New York, director.
First Security Co. of the City of New York, director.
Kansas City, Fort Scott & Memphis Railway Co., The, director,
Kansas City, Memphis & Birmingham Railroad Co., director.
Keokuk & Des Moines Railway Co., director.
National Biscuit Co., director.
Peoria & Bureau Valley Railroad Co., director.
Price Flavoring Extract Co., director.
Rock Island Co., The, director.
St. Louis & San Francisco Railroad Co., director.
United States Steel Corporation, director.
Morgan, J. Pierpont.
.a<3tna Insurance Co., Hartford, Conn., director.
Carthage & Adirondack Railway Co., director.
Carthage, Watertown & Sackets Harbor Railroad Co., director.
Central New England Railway Co., director.
Cleveland, Cincinnati, Chicago & St. Louis Railway Co., director.
Columbus, Hope & Greensburg Railroad, director.
Dunkirk, Alleghenj' Valley & Pittsburgh Railroad Co., director.
Ellenville & Kingston Railroad Co., director.
First National Bank of New York, director.
First Security Co. of the City of New York, director.
TJNITED STATES STEEL CORPOEATIOK. 3G75
Morgan, J. Plerpont — Continued.
Fort Wayne, Cincinnati & Louisville Railroad Co., director.
Pulton Chain Railway Co., director.
Fulton Navigation Co., director.
General Electric Co., director.
Harlem River & Port Chester Railroad, director.
Hartford & Connecticut Western Railroad Co., director.
Jersey City & Bayonne Railroad Co., director.
Lake Erie & Western Railroad Co., director.
Lake Shore & Michigan Southern Railway Co., The, director.
Mexican Telegraph Co., director.
Michigan Central Railroad Co., The, director.
Mohawk & Malone Railroad Co., director.
National Bank of Commerce In New York, director.
New England Navigation Co., director.
New England Railroad Co., director.
New Jersey Junction Railroad Co., director.
New Jersey Shore Line Railroad Co., director.
Newport Trust Co., director.
New York & Harlem Railroad Co., director.
New York & Northern Railway Co., director.
New York & Ottawa Railway Co., director.
New York & Putnam Railroad Co., director.
New York Central & Hudson River Railroad Co., The, director.
New York, Chicago & St. Louis Railroad Co., director.
New York, New Haven & Hartford Railroad Co., director.
New York, Ontario & Western Railway Co., director.
New York State Realty & Terminal Co., director.
Niagara Falls Branch Railroad Co., director.
Ontario, Carbondale & Scranton Railway Co., director.
Pittsburgh & Lake Erie Railroad Co., director.
Port Jervis, Montlcello & Summitville Railroad Co., director.
Poughkeepsle Bridge Railroad Co., director.
Pullman Co., The, director.
Raquette Lake Railway Co., director.
(Rhode Island Co. (electric line), director.
Rutland Railroad Co., director.
St. Lawrence & Adirondack Railway Co., director.
Syracuse, Geneva & Corning Railway Co., director.
Terminal Railway of Buffalo, director.
United States Steel Corporation, director.
Wallkill Valley Railroad Co., director.
West Shore Railroad Co., director.
Western Union Telegraph Co., director.
Morgan, J. Plerpont, Jr.
Acadia Coal Co., Limited, director.
International Mercantile Marine Co., The, director.
Northern Pacific Railway Co., director.
Murray, Thomas.
American Bridge Co., director.
American Bridge Co., of New York, director.
American Sheet & Tin Plate Co., director.
American Steel & Wire Co., of New Jersey, The, director.
Duluth & Iron Range Railroad Co., assistant secretary, assistant treasurer,
and director.
3676 UNITED STATES STEEL CORPORATION.
Murray, Thomas — Continued.
Federal Steel Co., first vice president and director.
Lake Superior Consolidated Iron Mines, vice president and director.
National Tube Co., director.
Scott & Fowles Co., director.
Tennessee Coal, Iron & Railroad Co., director.
Traction Equipment Co., director.
United States Steel Products Kxport Co., secretary and director.
Perkins, George W.
Astor Trust Co., director.
Bankers' Trust Co., director.
Cincinnati, Hamilton & Dayton Railroad Co., chairman of the board of di-
rectors.
Dayton & Union Railroad Co., director.
German-American Insurance Co., director.
Great Central Dock Co., vice president and director.
Hamilton Belt Railway Co., vice president and director.
International Harvester Co., chairman of finance committee and director.
International Mercantile Marine Co., director.
Marquette & Bessemer Dock & Navigation Co., director.
National City Bank of New York, The, director.
New York Trust Co., trustee.
Northern Pacific Railway Co., director.
Northern Securities Co., director.
Pere Marquette Railroad Co., chairman of the board of directors.
United States Steel Corporation, director.
Phipps, Henry.
Mellon National Bank, Pittsburgh, director.
Philadelphia Rapid Transit Co., director.
United States Steel Corporation, director.
Ream, Norman B.
Baltimore and Ohio Railroad Co., director.
Brooklyn Heights Railroad Co., director.
Brooklyn Rapid Transit Co., director.
Central Safety Deposit Co., vice president and director.
Chicago & Erie Railroad Co., director.
Chicago, Burlington & Quincy Railroad Co., director.
Cincinnati, Hamilton & Dayton Railroad Co., director.
Cumberland Corporation, director.
Erie Railroad Co., director.
First National Bank of Chicago, director.
Franco-American Financial Association, The, director.
International Harvester Co., director.
Metropolitan Trust Co. of the City of New York, director.
National Biscuit Co., director.
New York, Susquehanna & Western Railroad Co., director.
New York Trust Co., trustee.
Pennsylvania Coal Co., director.
Pere Marquette Railroad Co., director.
Pullman Co., The, director.
Reliance Co., The, director.
Seaboard Air lAne Railway, director.
Securities Co., The, director.
United States Steel Corporation, director.
UJ>)ITBD STATES STEEL COBPOEATION. 3677
Beid, Daniel G., vice president and director of the Liberty National Bank.
American Can Co., director.
Astor Trust Co., director.
Bankers' Trust Co., director.
Chicago & Eastern Illinois Railroad Co., director.
Chicago, Rock Island & Pacific Railroad Co., director.
Chicago, Rock Island & Pacific Railway Co., the, chairman of the board of
directors.
Continental Insurance Co., The, director.
Evansville & Indianapolis Railway, vice president and director.
EvansviUe & Terre Haute Railroad Co., vice president and director.
Guaranty Trust Co. of New York, director.
Keokuk & Des Moines Railroad Co., vice president and director.
Peoria & Bureau Valley Railroad Co., president and director.
Rock Island Co., The, director.
St. Louis & San Francisco Railroad Co., director.
Second National Bank, Richmond, Ind., director and vice president.
Union National Bank, Richmond, Ind., director.
United States Steel Corporation, director.
Rockefeller, John D., jr.
American Linseed Co., director.
Delaware, Lackawanna & Western Railroad Co., member of board of
managers.
Standard Oil Co. (of New Jersey), director.
United States Steel Corporation, director.
Steele, Charles.
Adams Express Co., The, member of the board of managers.
Alabama Great Southern Railroad Co., director.
Atchison, Topeka & Santa Fe Railway Co., The, director.
Central Railroad Co. of New Jersey, The, director.
Chicago & Erie Railroad Co., director.
Chicago, Indianapolis & Louisville Railway Co., director.
Cincinnati, Hamilton & Dayton Railway Co., director.
Erie & Jersey Railroad Co., director.
Erie Railroad Co., director.
General Electric Co., director.
Gulf, Colorado & Santa Fe Railway Co., director.
International Harvester Co., director.
International Mercantile Marine Co., The, director.
Lehigh Valley Railroad Co., director.
Lehigh Valley Railway Co., director. "
National Tube Co., director.
New Jersey & New York RaUroad Co., director.
New York, Susequehanna & Western Railroad Co., director.
Northern Pacific Railway Co., director.
Pere Marquette Railroad Co., director.
Santa Fe, Prescott & Phoenix Railway Co., director.
Southern Railway Co., director.
Standard Trust Co., director.
United States Steel Corporation, director.
Stetson, Francis Lynde.
Atlantic Coast Lumber Corporation, director.
Cataract Power & Conduit Co., of Buffalo, director.
Chicago & Erie Railroad Co., director.
3678 UNITED STATES STEEL. COBPOKATION.
Stetson, Francis Lynde — Continued.
Erie & Jersey Railroad Co., director.
Genesee River Railroad Co., director.
New York, Susquelianna & Western Railroad Co., director.
Niagara Falls Power Co., The, director.
Niagara Development Co., director.
Niagara Junction Railway, director.
United States Express Co., director.
United States Rubber Co., director.
Trimble, Eicliard.
Elgin, Joliet & Eastern Railway Co., director.
Federal Steel Co., secretary, treasurer, and director.
Lake Superior Consolidated Iron Mines, director.
Minnesota Steel Co., treasurer and director.
National Tube Co., director.
Tennessee Coal, Iron & Railroad Co., director.
Union Steel Co., director.
Walters, Henry. ,
Atlanta & West Point Railroad Co., director.
Atlantic Coast Line Co., Tbe, chairman of the board of directors.
Atlantic Coast Line Railroad Co., chairman of the board of directors.
Belt Line Railway Co. (Montgomery, Ala.), director.
Charleston & Western Carolina Railway Co., vice president and director.
Chesapeake Steamship Co., director.
Chicago, Indianapolis & Louisville Railway Co., director.
Columbia, Newberry & Laurens Railroad Co., director.
Cuba Co., The, director.
Lackawanna Steel Co., director.
Louisville & Nashville Railroad Co., chairman of board of directors.
Milledgeville Railway Co., director.
Nashville, Chattanooga & St Louis Railway Co., director.
New York Shipbuilding Co., director.
Northern Central Railway Co., director.
Northwestern Railroad Co. of South Carolina, director.
Old Dominion Steamship Co., director.
Richmond-Washington Co., director.
Safe Deposit & Trust Co., Baltimore, vice president and director.
Southern* Cotton Oil Co., The, director.
Virginia-Carolina Chemical Co., director.
Washington Southern Railway Co., director.
Western Railway of Alabama, director.
Western Union Telegraph Co., The, director.
Wilmington Savings & Trust Co. (Wilmington, N. C), vice president and
director.
Dickson, William B.
Butte Coalition Mining Co., director.
Carnegie Steel Co., director.
Minnesota Steel Co., president and director.
Montclair Trust Co., director.
National Tube Co., director.
Red Metal Mining Co., director.
Tennessee Coal, Iron & Railroad Co., director.
Trenton Iron Co., director.
Union Steel Co., president and director.
COEPOEATION. 3679
Filbert, William J.
Essex Iron Co., director.
Lake Superior Consolidated Iron Mines, director.
Minnesota Steel Co., secretary and director.
Tennessee Coal, Iron & Railroad Co., director.
Troy Steel Products Co., director.
Union Steel Co., director and secretary.
In the summary of the evidence submitted as Exhibit 29 of this
report, under the heading of " United States Steel Corporation — ■
Financial and corporate operations, year by year," there are pre-
sented a number of references to the purchase of stocks of other com-
panies, the bonds of other companies, and the property and plants of
other companies, together with various transactions with outside com-
panies commonly regarded as having no connection with the United
States Steel Corporation. Eeference is made to that data. Ref-
erence should also be made to the schedule or statement requested to
be furnished by the United States Steel Corporation, and which is
referred to in paragraph 8 of this report.
10. The policy of the Steel Corporation resulting in enhancing the
prices of raw and semifinished material. As we have seen above, in
regard to pig iron, the Steel Corporation officers declared the
policy of buying all the available supply in order to keep the price
up. Also, in regard to raw and semifinished products, a policy is
pursued having a similar effect upon competing concerns. The result
of the practices now considered is, of course, markedly intensified by
the policy of reducing output to conform to the estimated demand or
the proportion of that demand conceded to different mills, which is
referred to hereunder in connection with the Gary dinners.
In the minutes of the Carnegie Steel Co.'s directors the vice presi-
dent and general sales manager stated :
The average price of pig iron for November was $22.81, covering sales of
about 36,000 tons, which is enough to make a market. This will have the effect
of advancing the price on our raw-material contracts over the third-quarter
price nearly $3 per ton. It will make the majority of our billet contracts. Cruci-
ble, for instance, pretty nearly $29 per ton, and Oliver will pay $30. When you
consider that the price of finished material to-day is only $3 to $4 per ton above
this figure, and considerable finished material is sold on old contracts at a
much lower price than that of to-day, how these people can pay this price for
their raw material is a pretty hard problem. (Dec. 3, 1906.)
In April 5, 1904, in the finance committee of the Steel Corporation
(Mr. Perkins in the chair), it was recommended that subsidiary com-
panies who are manufacturing semifinished products do not sell same
to outsiders in competition with subsidiary companies who are manu-
facturing finished product from such semifinished products, without
the consent of the subsidiary company interested.
In March 21, 1906, and April 18, 1906, in the minutes of the general
managers of sales of the Steel Corporation, it is stated that " refer-
3680 UNITED STATES STEEL COEPORATIOK.
ring to the change of policy decided on by the corporation that we
are not in the future to sell any raw material other than that which
we can not use in our own finishing mills," the Carnegie Steel
Co. intend to cancel all their contracts for such material.
In July 16, 1906, it appears in the minutes of the directors of the
Carnegie Steel Co. that —
We have served Hotice on a lot of contracts expiring January 1st tliat we will
not renew them. As a matter of fact we need hardly sell a pound of raw mate-
rial now to outsiders. At Duquesne, for instance, the new lined mill is now
taking 65 tons of steel per day, and before long we will be taking 100 tons per
day, and as every bit of this is taken from the trade the situation is growing
worse all the time.
As early as July 1, 1902, in the minutes of the Carnegie Steel Co.
directors, it was recognized that the decision that " at the last meet-
ing of the presidents it was decided by a majority and approved by
the president of the Steel Corporation that Carnegie and National
Steel companies are not to sell unfinished material on scale contracts
to any companies competing with constituent companies of the cor-
poration," "will mean more shutdowns in the future than in the
past " ; but the truth of this statement as a prediction is best verified
by the result.
On March 20, 1907, in the minutes of the general managers of sales
of the United States Steel Corporation, it appears :
Raw material. Reporting on the raw-material situation, Mr. Hope stated It
is worse to-day than he has ever seen it before, and he did not Imow where it
is going to end. A number of their customers are practically shut down now for
want of steel, and some of them have gone into the market trying to buy ton-
nage, but have not so far been very successful.
On April 17, 1907 (id.), it appears —
Raw-material situation. The chairman advised this situation is no better,
and, if anything, worse.
On June 24, 1907, in the minutes of the directors of the Carnegie
Steel Co., it appears —
There are some things in the situation which are going to have an effect upon
the raw end. Milliken Bros, have gone into the bands of a receiver and shut
down their rolling iQills. For the present, at least, it is the intention to operate
only their structural plant, and they are now In the market to buy the tonnage
required to fill their contracts, amounting to 45,000 tons to be placed and taken
out within the next six or eight months, besides any additional steel they will
need on new contracts the receivers may make. This is tonnage which they
had figured upon making themselves, but which will now come into the market
It may not come to us, but in any event it means that much capacity shut down.
The Basic Steel Co. have also shut down their rolling mill, possibly for good,
and will operate only their structural plant. One or two of the eastern con-
cerns are reported as being a little shaky.
This is all due to the fact that the raw material has gone so high that the
people who have to buy heavily are simply down and out; there has not been
u^iTJiU BTATifiS srJiJiXrTIOEPORATION. 3681
maintained a relative difference between raw and finislied products to enable
them to continue operations at a profit. It is not a condition tliat anybody is
responsible for, simply due to the fact that supply and demand have been such
that finished prices could not go up, and raw material being so scarce, prices
were raised on it.
Also idem, July 1, 1907 :
The Eastern Steel Co., it is reported, is not in very good shape financially,
and it is possible they will also shut down. This will eliminate all of our new
competition outside of Bethlehem and will make our proposition, on the whole,
difficult.
Also idem, February 8, 1909, it was stated that the —
mills which are in this business (forgings) are holding up the price of billets
and pulling down the price of finished forgings, which is practically putting the
independent forge maliers out of the market. And on shafting, Jones &
I^aughlin are selling at a price which their competitors can not afCord to meet
after paying the market price of 1.40 cents for bars.
On July 16, 1906, as appears above, the Carnegie Steel Co. served
notice of refusal to renew contracts, and on November 5, 1906, it
appears —
The tube company will be getting the benefit of their higher prices this month,
and, commencing December 1, they will be paying us at least $2 and possibly
$3 to ?4 more per ton for their skelp than at present. 1 have already arranged
this.
Tubes, of course, are a highly finished product.
In this connection it should be noted that special terms are granted
to the American Bridge Co., which sells finished product (general
manager of sales' minutes, United States Steel Corporation, July
17, 1901) , and a concession is made to the finishing company when it
sells for export at less than a fair profit (Id., May 22, 1901) ; see also
in this connection the contract to make payments to the American
Bridge Co. of New York made by the American Bridge Co. of New
Jersey. (Dir. min., Oct. 17, 1901.)
11. The percentage of ore owned and controlled by the United
States Steel Corporation must be viewed, as to its effect, in the light
of the conduct and policy disclosed above. The passive ownership of
large reserves would be of no effect upon the steel business, except, of
course, the effect of removing from use part of the available supply.
But the ownership of 76 per cent of the competitive ore in Minnesota
and 500,000,000 tons in the South, or, in all, 2,500,000,000 tons out of
4,462,940,000 tons of commercially available ore in the United States
(Keport Com. Corp., pp. 378-382) , in one ownership (as against frag-
mentary segments of the remaining minor part held by all the rest of
the holders) , which is held by owners engaged in a line of business in
which new competition is inherently and unusually difficult (Tariff
Hearings, 1908, vol. 2, pp. 1850-1852) because of the immense initial
31572— No. 53, pt. 1—12—6
3682 TJNITED STATES STEEL COKPOBATION.
outlay required [estimated at fifty to a hundred million dollars
(6-339), and the diMculty of getting a steady supply of ore (18-
1291)], which owners do not sell ore (3-85) ; who enhance the price
of pig iron by purchasing all the known available supply; who do
not sell pig iron except at arbitrary, increased prices; who do not
sell raw materials or semifinished materials; who control 90 per
cent of the export sales largely at prices below domestic prices; who
through combination maintain an average standing cash balance
of $75,000,000 (3-132; 20-1425); who have so much lower cost
of production that it is admitted that the so-called independents can
not compete with them in free competition (Tariff Hearings, 1908, vol.
2, pp. 1751, 1750, 1728, 1729 ; and in hearings of this committee, vol.4,
p. 195; vol. 3, p. 83), who have power to recoup the diminished
profits or expenses of one branch from another branch of their artic-
ulated organization, and which owners, while operating in this man-
ner, keep down the prices of finished products, such as rails (3-92;
3-97 Tariff Hearings, vol. 2, pp. 1650-1651, 1676, 1677), is an owner-
ship and a control which must interfere with competition.
12. Hereunder follows a number of extracts from testimony, evi-
dence, and other sources bearing upon the Gary dinners and matters
connected with them, and an explanatory statement of their bearing
upon the inquiry which was prepared by Mr. Anthony J. Ernest, a
member of the New York bar, who extracted the said minutes and
collected the evidence relating to this matter.
I had Mr. Ernest prepare the matter relating to these subjects,
inasmuch as my authorization and instructions from the committee
embraced a wider inquiry than merely examining the accounts, and
included an examination of the Sherman law, the resolution appoint-
ing the committee, the testimony, and other data.
A number of agreements allotting certain percentages of the busi-
ness and fixing prices existed between subsidiary companies and
so-called independent companies at the time of the organization
of the United States Steel Corporation, which were continued until
1904, and other agreements were entered into in July, 1908, and
continued until 1909. (Answer of United States Steel Corporation,
p. 41.) It was also testified that although the operation of some
of the agreements was terminated in 1904, that the meetings were
continued, and information was exchanged until 1908. It is now
claimed that all of these agreements are discontinued, and the only
relation that the United States Steel Corporation has with such
independent companies is that which may exist because of the
Gary dinners. The first Gary dinner was held in November, 1907.
It is admitted that the price of at least one commodity, i. e., standard
rails, has remained fixed, notwithstanding the termination of the pool
agreements; and the prices of other commodities — to an extent to be
uaixxiu oxAXJio axJiiJilj OOEPOEATION. 3683
determined hereafter — have been influenced by the interchanges at
the Gary dinners.
The effect of the transition from the system of written contracts
with penalties or secret meetings for interchange of data as to the
output and prices, to the system of Gary diimers, should be con-
sidered.
First. Several of the pooling agreements were rendered unneces-
sary by the concentration of control of the several subsidiary com-
panies in the United States Steel Corporation. For example, it was
no longer necessary for the American Steel Hoop Co. to pay the
Illinois Steel Co. $150,000 a year to stay out of the cotton-tie busi-
ness (minutes directors Carnegie Steel Co., July 30, 1901), nor was
it necessary for the Carnegie Co. to agree to keep out of the bridge
business unless the American Bridge Co. failed to make two- thirds
of the bridge work in the United States (minutes directors Carnegie
Co., Apr. 23, 1900; minutes directors American Bridge Co. of New
Jersey, May 10, 1900), any more than it was necessary to pay $5,000
a month to the New Jersey Steel & Iron Co. not to operate certain
of its structural plants as provided in the Structural Steel Associa-
tion agreement (24^1718, 1813), because as the holding company
controlled all the companies just named.
William Temple, the commissioner of the Steel Plate and the
Structural Steel Associations, testified that Mr. Gary had terminated
the pools because "he did not believe associations of this character
were desirable or longer necessary" (24^1717-1718).
The policy of discontinuing such methods of controlling otherwise
apparently independent concerns was followed in other cases. For
example, the Carnegie Steel Co. in June, 1909, as appears by the
minutes of directors of that company, recommended the sale of 675
shares of the stock of 18 small ginning companies which had been
bought for $19,050, and which were marked down to $8,651.25, it
being said : " As the purposes for which they were taken have now
been accomplished, as evidenced by the fact that the shipment of
cotton ties this year amount to about 2,500,000 bundles, we may as
well sell them." " These are stocks of companies which favor square
bales of cotton and use our cotton ties exclusively."
In relation to the Gary dinners, Mr. Gary, when asked about the
statement made at one of the dinners, that —
We come together upon a platform that involves the honor of a man, which
l.s far better, and far higher, and far more binding upon us than any contract
which we could make.
testified that it would be dishonorable conduct for a man to sell
goods at a difi'erent price from that which he told others in the busi-
ness he was selling at (5-266).
3684 UNITED STATES STEEL COEPOKAXIUJN .
The statement that those at the dinner "come together upon a
platform that involves the honor of a man, which is far better, and
far higher, and far more binding upon us than any contract which
we could make," is of practical importance in estimating the effect
of the change from the system of written contracts to the system of
meeting at the Gary dinners.
The previous pool agreements were not enforceable (18-1286,
1287; 6-321), and the only thing that could enforce them was the
forfeit or the sense of obligation on the part of the men making
them (18-1287), and the violation of the agreements did not bar
anyone from entering a new pool (18-1320). Mr. Temple, the
commissioner, testified that the respective mills in the pools would
deliberately exceed their allotments, and even incurred a penalty, in
order to obtain a larger allotment the following year (24^-1712).
But it seems that the enforcement of penalties was not insisted
upon. Mr. Temple said : " I am pleased to state I never assessed a
penalty for any violation " (24-1716) ; and Mr. Schwab also said
there was a small money forfeit in the plate agreement, and that he
did not recall any other agreements that had that forfeit, and he
testified (18-1320) :
Mr. Babtlett. Did he not pay into a common treasury fund, and In case lie
violated the agreement was not part of that to be taken and charged up to him?
Mr. Schwab. No; I do not know of any instance of that kind excepting the
one we speak of — the plate. They were generally agreements or understandings
such as I have spoken of, where each one was entitled to a certain percentage
of the business, and we maintained the price. Those were the only two things
that we really needed any agreement on.
Mr. Babtlett. And it depended altogether upon the gentleman as to whether
he kept it or not?
Mr. Schwab. Quite so.
Mr. Babtlett. He could not make another after he violated the first?
Mr. Schwab. Oh, I would not say that. We did. We were rather forgiving
in those things.
And even the money paid in was returned to those members of the
pool who paid it in after the first one or two years, as Mr. Temple
testifies, as follows (24-1721) :
This distribution of the moneys in the association at the end of the year was
not continued beyond the first one or two years of the association. The first
year they were rigidly distributed. Eveiy man demanded his pound of flesh.
The second year — I think it was the second year— by almost unanimous consent,
they decided that owing to certain conditions they would not distribute the
money that year, but would return it to the members of the association who
had paid it in.
And at 24-1717 he testifies :
After a very few meetings they commenced to set acquainted with each other,
found they were all human, and the suspicion, intense suspicion, amounting
to almost certainty of intended fraud, ceased to be so apparent. So that at the
UNITED STATES STEEL COEPORATION. 3685
end of the first year they were all good friends. Then they began exchanging
actual information with each other. There was scarcely any question
that one maker would ask another that he would not answer, even about
the most intimate secrets of his business, his costs, and things of that sort.
It made the steel business, so far as the people associated with those associations
were concerned, rather a family affair than one of destructive warfare.
Mr. Temple states they worked just as harmoniously after dis-
solution of the , pool agreements as they did before and that the
former members did not exceed their proportionate tonnage even
after the dissolution of the pools if it unsettled prices, and they
would explain any excess of their share of the business (24^1734,
1735, 1718, 1719, 1746). Mr. Huston said that there is no agreement
in existence "only as a man. If I should say to some one that my
price was going to be so and so I would expect to hold it " (11-681.
682, 686).
The testimony of several witnesses indicates that a considerable
degree of fraternal relations arose amongst the steel manufacturers
through the pools and meetings and interchange of information.
And the Commissioner of Corporations discusses the working of
gentlemen's agreements and pools as follows (p. 75) :
Gentlemen's agreements * * * The gentlemen's agreement proper was
distinguished from the pool in that no formal organization for regulating out-
put or prices existed, the efficacy of the agreement simply depending upon the
faithfulness of the members in maintaining informal pledges. Such gentlemen's
agreements contained no provisions for forfeits in case of infraction, or for the
acquisition or subsidizing of outside plants to prevent competition.
The report then continues, under the heading —
Sec. 5. Weakness of pool agreements a contributory cause of the organization
of corporate consolidations —
to review the failure and disruption of various pools, and concludes :
These experiments at combination, however, undoubtedly tended to hasten
the progress of the consolidation movement proper. The success, even though
brief, of some of these pool organizations in securing large profits for their
members had illustrated the advantages of concerted action. At the same time
the low prices which followed the disruption of these associations, coming
as they did after several years of acute depression in the industry, had a very
discouraging effect, and manufacturers were ready to listen to almost any plans
which promised Increased profits.
Mr, Gayley testified that he did not have any knowledge of the ex-
istence of the pooling agreement in 1901, and when asked by Mr.
Young, " Was that change, in your judgment, caused by the organiza-
tion of the Steel Co ? " he answered, " It may have been the natural
result of it " (7-371) ; and Mr. Schwab testified before the Ways and
Means Committee, December 15, 1908, at the tariff hearings, that he
would not vary the $28 price of rail 10 cents a ton, because it would
precipitate a steel war " that would result in running my works with-
out any profit. I would not vary the price of rails under any cir-
3686 TJNITBD STATES STEEL CORPOKATION.
cumstances, not if I knew I was to get 100,000 tons of orders, for the
reason that my competitor next door would put the price down one
dollar or half a dollar a ton, even, and we would be in a position
where we would be running without any profit at all " ; and Mr.
Schwab testified that the same is true of all steel products, such as
structural, plates, etc. (Tariff Hearings, vol. 2, pp. 1650-1651, 1676,
1677.)
Mr. Temple when asked, " Could they maintain, by the gentlemen's
agreement, that level of price and prevent that destructive compe-
tition af which you spoke in the Carnegie regime ? " answered, " They
say the leopard can not change his spots, nor the Ethiopian liis skin ;
but the leopard does move from place to place, which, in one figure
.of speech, is a change of spots. I would not presume to say how
closely they could follow the rules they have learned, under the bit-
ter warfare preceding 1897, and the different conditions from 1897
to 1907, but I have not heard of any destructive competition since
that time. Further than that I have no knowledge on the subject."
(24-1719.)
The general trend of the conventions between the steel manufac-
turers during the period after the termination of the enforcement
of penalties was for tlie maintenance of prices and. the limitation of
production according to their estimate of the existing demand.
These same practices are advocated and conomended by the speak-
ers at the Gary dinners. The purpose and intent to maintain prices
was declared many times. (See Gary, vol. 3, pp. 76, 78; vol. 4,
pp. 195, 196; vol. 5, pp. 266, 268, 269. See also short extracts from
the remarks of all speakers at the Gary dinners bearing upon the
subject in the summary and index of the evidence, under the head-
ing of " Gary Dinners," pp. 42-55.)
The purpose and intent to keep down production and output was
declared many times. (See Gary, vol. 5, p. 265; Willis L. King,
vol. 5, p. 269; Gary, vol. 5, pp. 270, 272-274, 275. See also short
extracts from the remarks of all speakers at the Gary dinners bearing
upon the subject in the summary and index of the evidence, under the
heading of "Gary Dinners," pp. 42-55.)
The purpose and intent to refrain from changing prices after
declaring in favor of a named price, except upon so stating to the
other participants, is advocated many times. (See Gary and Huston,
vol. 5, p. 277; Kelly and Gary, vol. 5, p. 279; Gary, vol. 5, p. 281.
See also short extracts from the remarks of all speakers at the Gary
dinners bearing upon the subject in the summary and index of the
evidence, under the heading of " Gary Dinners," pp. 42-55.)
LiMULJilJ olAXJiS STKJilj COEPOEATIOjST. 3687
The policy of maintaining prices and keeping down production to
conform to an estimate of the existing demand has been questioned
by Mr. Carnegie (see Tariff Hearings, 1908, vol. 2, p. 1803, and vol.
4, p. 197, before this committee) and by others in the steel business
who had been in favor of open competition, such as Mr. Gates (see
vol. 1, p. 43) and Mr. Schwab (18-1279).
The Gary dinner arrangement, in which independents are in-
fluenced to reduce their production conformably to their estimate of
the reduction in the demand existing, and to maintain prices, re-
stricts the action of the participants as far as they reduce their
production and maintain prices. The arrangement is designed and
intended to operate, and has operated admittedly, as to standard and
steel rails, although it is claimed that independents may cut prices
without fear of penalty, except the dishonor of declaring in favor
of a named price and then selling at some other price. As is stated
in the answer of the United States Steel Corporation, the chairman
of the board of directors of the said corporation at his opening ad-
dress at the meeting of January 11, 1911, declared his position as
follows :
I would not make an agreement under any circumstances to niaiutaln iwices
or to do or to refrain from doing anything wliicli would prevent me from being
absolutely independent from all others in every respect concerning every depart-
ment of our corporation, or in regard to the conduct of our business, and T
would not ask for any different conclusion from others. As I said before, the'
very fact that it is understood we have this right, that we are independent,
that we can go out of this room and do exactly as we please without violating
any agreement or understanding, and that all must depend upon the belief that
as honorable men we are desirous of conducting ourselves and our business in
such a way as not to injure our neighbors, must make each of us more careful
in regard to the conduct of our affairs, and there will be no secrecy in what
we do.
But the fact that the independents may cut prices, in spite of their
cooperation in the Gary dinner arrangement, does not affect the
results admittedly accomplished, namely, they do not cut prices of
standard rails. And, as Mr. SchAvab testified, "there has been no
manufacturer selling rails that would dare change that price," and
"that is true of every line of which I spoke * * *. Structural
steel and steel products." (Tariff Hearings, vol. 2, 1908, p. 1676.)
The participants also indorse the policy promulgated by Mr. Gary,
to the effect that it is dishoriorable to sell at a different price from
that announced to fellow manufacturers, and they cooperate in the
practice of reducing production. (See references above.)
And it is not material that in the cooperation of the participants
in the Gary dinners no penalty attaches to a violation of the declara-
tions mutually exchanged, because no penalty for reducing prices or
exceeding a fixed share of the business could be enforced. The pre-
vious pool agreements may have been broken and penalties inflicted
by the members themselves, although, as we have seen, this was soon
3688 UNITED STATES STEEL COKPOEATION.
discontinued. It will be assumed, even if a fund had not been
deposited, that the men in the old pools would have paid their fines.
If this be assumed, it can also be assumed that the word of the par-
ticipants in the Gary dinners is ample security for the professions
of cooperation subscribed to at the dinners. It seems to be recog-
nized by the representatives of the United States Steel Corporation
that the arrangement made at the Gary dinners would be an ar-
rangement in restraint of trade if the agreements were binding.
(See Gary, 5-266.) On the other hand, any contract may be broken
and any arrangement may be upset by recalcitrants.
Wliether it is a contract which can be broken or an understanding
which can be departed from or a pledge of honor which can be vio-
lated is innnaterial. What determines the character of the arrange-
ment is not its liability to be broken, but what can be and is done
under it. It seems that there has been sufficient performance of
the subject of the " meeting of the minds " at the Gary dinners to
prove that, as far it is carried out, it must interfere with one par-
ticipant competing with another, even though disaffected or ill-
advised participants might isolatedlj- violate their pledges. In other
words, paraphrasing the language that has been used in another
place under similar circumstances, although it was not the purpose
of the association to prevent the members from reducing rates or
changing rules and regulations fixed by the association, but that by
the terms of the agreement a member might do so, the preliminary
requirement being that the proposed change should be voted upon
at a meeting of the association, after which if the proposal was not
agreed to, the one making the proposal could make such reduced
rates, notwithstanding the objections of the other ones; that the
purpose of this provision was to afford opportunity for the reason-
ableness of any proposed law, rule, or regulation to be considered
by all interested and an interchange of views on the effect of such
reduction, and that reductions of rates had been made in numerous
instances through the said process by the association, and there was
no duress of fines or penalties or otherwise, nevertheless the conven-
tions agreed to and enforced would be objectionable as regards their
effect upon competition.
But the effect of the Gary dinners can not be considered in a man-
ner that would be at all useful in this inquiry if there be omitted
from consideration the fact or facts testified to by Mr, Gary to the
effect that there are no concerns that can compete with the United
States Steel Corporation in a condition of open competition.
Mr. Gary duly testified (Dec. 18, 1908) as follows:
I do believe large numbers would be driven out of business if we were will-
ing to drive them out either because we thought it was right to do so or good
Bolic? to do so. CTarifE Hearings. 1908, vol. 2, p. 1751.)
UNITED STATES STEEL, COEPOEATION. 3689
If, in any particular line, by reason of our opportunities, our wealtli, our
organization, and our ownership of the best raw products, we can manufacture
cheaper than our competitors, then, with reference to that line,. we could drive
them out of business. (TarifC Hearings, 1908, vol. 2, p. 1750.)
Mr. Clark. Suppose this case: Suppose you did conclude for any reason, no
difCerence what, to mark yours up to $30, and one of these independent con-
cerns thought it had a good opportunity to make money and it held its at $28
or marked them down to $27, have you not such a hold on the American market
that you could immediately mark yours down to $20 or $25 long enough to put
that fellow clear out of business and then mark yours up again to where you
wanted it?
Mr. Gaby. Quite likely ; that may be true. I will not say that it is not true.
I will not say that in the competition we could not drive a good many of our
competitors out of the business.
Mr. Clare. Now another thing.
Mr. Gary. It is not because of a hold on the market.
Mr. Clark. What is it, then?
Mr. Gary. It is because of our ability to produce cheaper and because of our
ownership in the independent concerns, such as the railroads, the steamship
lines, etc., which gives a large credit from the United States Steel Corporation's
standpoint. (Tariff Hearings, 1908, vol. 2, p. 1728.)
Of course, if we were in competition in self-defense — and that is the only
kind of competition I believe in — speaking for myself — that is, destructive com-
petition— if we were In destructive competition in self-defense, we would mark
down to pretty nearly our cost, and the result would be that the competitor who
could not manufacture as low as we could would go out of business in the
course of time. (TarifC Hearings, 1908, vol. 2, p. 1729.)
In reference to the effect of taking off the tariff upon iron or steel,
Mr. Gary testified : " I think many, if not most, of our competitors
would soon be out of business, and we should have the field," if there
were reductions in the tariff. And when asked if that would not be
to the interest of the United States Steel Corporation from a selfish
standpoint, Mr. Gary testified:
I think it would be the worst thing that could happen to United States Steel,
because the people would not stand it.
And he testified to the same effect in volume 4, page 177, of the
hearings before this committee.
Mr. Gary also testified in volume 4, page 195 :
On the other hand, except for some basis whereby destructive competition
could be avoided, whereby the old methods of doing business, under which, as
you probably know, a few only of the steel companies were allowed to survive
and do business and a large majority were wrecked, if we should enter into
that kind of competition, it would mean that a large percentage at least of the
manufacturers of steel would be wrecked, and that would secure to the sur-
vivors to a greater or less extent a monopoly. (Vol. 4, p. 195.)
3690 UNITED STATES STEEL, COEPOBATION.
Mr. Gary testified in December, 1908, while being examined by Mr.
Cockran in reference to the power that might be exercised to obtain
a monopoly 'by the United States Steel Corporation, as follows:
Mr. GocEBAN. * * * Now, among the conditions that contributed to that
situation an important element is your ownership and control of the ore supply?
Mr. Gaet. Yes ; of course it is.
Mr. COCKBAN. You practically do control the ore supply of the country?
Mr. Gaby. No ; not now ; not for the immediate future.
Mr. CocKBAN. Well, the ultimate supply?
Mr. Gaet. Yes ; I think so — that is, pretty nearly. It is not absolute control.
And when Mr. Gary was examined in reference to this testimony,
in the hearings before this committee, he said -(vol. 3, p. 83) :
Mr. Gaby. Now, this is what I had in miud at that time. In the first place,
I did not have the figures before me as clearly as I have since. Those questions
were asked me without gi^ing me any previous notice, and therefore without
opportunity to look into the figures. But at that time I believed the United
States Steel Corporation had control of something like 65 or 70 per cent of the
best ores in the Northwest, and I believed the ores which the others had would
be exhausted before the ores in control of the United States Steel Corporation.
If so, the time would come when they would be in possession of some of those
ores after the others were exhausted, and then, of course, the others would be
compelled to use ores which at the present time are not even merchantable,
which, as I have said, are scattered all over the country.
The independents in the steel business should have no ground to
doubt the complete accuracy of the statements contained in the fore-
going extracts from Mr. Gary's testimony. Mr. Gary's statement
that if competition existed they could reduce their prices to a point
where the concerns who were subject to higher costs could not com-
pote is amply borne out by the figures submitted in connection with
section 1 of this report, when the profits of the United States Steel
Corporation there shown are considered in connection with the profits
of the so-called independent concerns, which have been stated by
reliable steel manufacturers and journals to amount to from $3 to $7
profit per ton.
The Wall Street Journal, Saturday morning, September 23, 1911,
in a news article under the heading " No voluntary dissolution of the
United States Steel Corporation," said in part :
For the last 10 years the net profits per ton of steel produced by the Steel
Corporation have ranged between $10 and $16 per ton, the latter figure having
been reached in the first few years of the company's existence. For the last
year the net profit per ton has not been much over $12. On the basis of
present prices the net is close to $11.
While the net earnings per ton of steel produced by the Steel Corporation
has ranged between $10 and $16 per ton, the independent steel companies have
not fared so well. Several of the independents have not been able to show
much over $4 per ton. The highest was approximately $7 per ton, by a small
western independent company, whose properties represent actual cash paid in.
Independent steel representatives seem to be of the opinion that it is not
UNITED STATES STEEL COKPOEATION. 3691
probable that the United States Steel Corporation wiU take any drastic disso-
lution measures until at least ordered or advised to do so by the Govermnent.
One operator states that if this is done, however, it will mean a more open
market for steel than exists at present, as the corporation's subsidiaries will
each work independently in the matter of making prices and getting orders.
The representatives of the largest independent steel companies admit that they
can not make steel and sell it for what the corporation can at present, and say
that the latter company, if dissolved, can certainly not retain its present meth-
ods of making steel and selling it for so great a net profit as it now does.
One steel man says: "I do not see what can be brought out against the cor-
poration detrimental to its subsistence, with the possible exception of its
railroads. These, of course, are a great source of revenue to the coffers of the
company, and of course a great deal of money is saved annually in freight,
especially on ores."
A man connected with another large company says that steel prices can
not go much lower and have the mills operate. He says : " It seems at present
that in some lines manufacturers are selling below cost, and of course this can
not continue for any length of time. It may be that the companies need the
cash and are compelled to get the orders even at prices shaved to the last cent."
Therefore, assuming that the statements quoted above are correct,
and that the comparative figures are correct, it would seem that the
combined effect of the conditions thus disclosed in the steel industry
and conventions like the Gary dinners, may be said at least to have
a strong tendency to render competition of no effect. (See also
Eeport of Commissioner of Corporations on Steel Industry, p. 373
and pp. 7, 98-99, 326, 392; also pp. 4, 5, 7, 48, 50, 61, 59, 60, 75, 82, 83,
84, 240, 326.)
13. By the resolution quoted below the subsidiary companies of the
United States Steel Corporation refuse to handle orders for export
business, and such orders must be turned over to the United States
Steel Products Export Co., the subsidiary companies preclude them-
selves from competing for export sales a,gainst the export company ;
and by other resolutions give lower prices to the export company,
allowing it a percentage for expenses. The United States Steel Cor-
poration itself in its answer claims that it now controls 90 per cent of
the total export trade of the United States in steel products.
As a result of enforcing these resolutions and arrangements ma-
terials for export must be bought from the United States Steel
Products (Export) Co., and buyers in the United States who wish
to buy goods for export are compelled to pay an additional profit
to the United Steel Products (Export) Co. These prices can not in
any event affect any jobbers who are subjected to the contract drawn
by the United States Steel Corporation, which provides that jobbers
will carry no stock "but that manufactured by the corporation in
its particular lines " and " will give up direct shipment (United States
Steel Corporation minutes of general manager of sales, June 17, 1909) ;
but all of the buyers who desire to buy for export shipment, whether
jobbers or not, are compelled to submit to this arrangement.
3692 UNITED STATES STEEL CORPOEATIOK.
Before the organization of the United States Steel Corporation
the American Steel & Wire Co. exported wire products to the amount
of over $9,000,000 between January, 1899, and December 31, 1899,
or equal to 50 per cent of all exports from the United States between
1890 and 1899, and it was stated that the export business of the
American Steel & Wire Co. during the first two months of 1900
presented a large and material increase over that of 1899, and for
the year 1900 the export business of that company was expected to
be larger than the business of 1899. (American Steel &,Wire Co.,
]Sr. J., stockholders' minutes, Feb. 20, 1900.)
If it be suggested that the subsidiary companies whickisell to the
United States Steel Products Export Co. reduce their profit in favor
of the export company, no reason is seen why this reduction could
not be made to any buyer for direct export except the arrangement
between the companies. For example, it is stated in the minutes of
the United States Steel Corporation, general manager of sales, Feb-
ruary 21, 1906 :
All material shipped direct from the mill to a point outside of the country
shall be turned over to the United States Steel Products Export Co., no matter
where the sale originates, and all inquiries shall be taken up with Mr. Farrell
of the export company.
Upon the same date it was stated :
Mr. ParreU stated there seemed to be a difference of opinion among some of
the constituent companies as to what constitutes export business, and he
thought the matter should be taken up and a ruling made to govern all of the
companies. Recently some material was shipped direct from the mill by the
tube company that had gone out of the country, which had not been handled
through the export company, and he thought if this practice continued it will
have a tendency to weaken the export company.
Mr. Downer (National Tube Co.) advised that all Inquiries received from
them by people who are recognized exporters are Immediately turned over to
the export company, but there are certain domestic jobbers not recognized as
exporters who ship more or less out of the country in connection with other
goods, and to these people they have been quoting domestic prices direct.
After some discussion on the subject it was unanimously agreed that the fol-
lowing should be incorporated in the minutes as a ruling of this association:
"All material shipped direct from the mill to a point outside the country
shall be turned over to the United States Steel Products Export Co., no matter
where the sale originates, and all inquiries shall be taken up with Mr. FarrelL"
And it was said in the minutes, under date of August 14, 1903 :
It was also decided' that from now on all inquiries for export shall be turned
over to the export bureau.
Besides quoting " these people (i. e., domestic jobbers who sell for
export) * * * domestic prices direct," as above stated, it was pro-
vided, upon December 2, 1903, and January 20, 1904, in the minutes
of the general managers of sales, as follows :
UJSriTED STATES STEEL COKPOEATION. 3693
Question was raised with regard to prices made to domestic manufacturers
for material which will be fabricated and then exported.
Mr. Farrell stated he has a man whose duty it is to keep a careful check on
all material shipped out of the country, and he will be in a position at any time
to ascertain whether material sold to domestic customers for this purpose is
actually exported, and will be very glad to render any assistance to the other
companies that he can.
And, idem, January 20, 1904 :
EECOED OF EXPORT MATERIA!, SOLD TO DOMESTIC MANUFACTUHERS.
After the general discussion of this matter it was recommended that the
export company be furnished full data by all companies on material sold to
domestic customers to be exported later, so that it will be enabled to keep a full
record in this respect, which it was agreed will be done.
In considering the data touching the export business of the United
States Steel Corporation it must always be kept in mind that the
corporation's method of keeping accounts appears to show losses sus-
tained by the export company, as illustrated by the statement of
account of operations for 1910, appended hereunder. , For example,
the net earnings showed :
1903, profit, $4,223.65 ; operating expenses, $55,387.75.
1904, profit, $81,483.04,; operating expenses, $451,010.83.
1905, loss, $99,077.41 ; operating expenses, $445,251.83.
1906, loss, $31,369.16 ; operating expenses, $514,125.96.
1907, loss, $1,685.27 ; operating expenses, $523,382.79.
1908, loss, $233,194.88 ; operating expenses, $579,690.55.
1909, loss, $156,164.27 ; operating expenses, $646,535.11.
1910, loss, $7,149.12 ; operating expenses, $771,767.22.
1910 income shows : Freight venture, chartered steamers, $225,709.83.
(Note. — Steamer Bantu was bought for £25,000, U. S. S. C, fin. com., Nov. 15,
1910.)
Now, these figures do not show the profits made before the transfer
or sale to the export company, as is proved by the method of fixing
the prices on sales from the other subsidiary companies to the export
company.
To illustrate:
On April 4, 1904, in the minutes of the Carnegie Steel Co. directors it appears
that the contract with the United States Steel Products (Export) Co. provides,
among other things that the Carnegie Co. agrees that the price to be charged by
it and to be paid by the export company for resale in foreign markets shall be
such price as may be obtained by the export company on resale of said mer-
chandise less such percentage as may be from time to time agreed on between
the Carnegie Co. and the export company, not exceeding 5 per cent.
And under the heading of " Financial accounting and invoice de-
partment," in July, 1903, in minutes of general managers of sales,
August 14, 1903, it appears :
If It is decided that It is to be operated as a general selling agency of all the
companies, it will probably be necessary to have the accounts carried on the
3694 UNITED STATES STEEL COEPOBATION.
books of the companies supplying the goods, in which case the proceeds of each
individual transaction would be rMnitted to the manufacturing company on
receipt.
In July, 1903, it was stated by the chairman of the general man-
agers of sales of the United States Steel Corporation —
With reference to sheets and tin plate particularly, that, while their present
costs would hardly permit them to export, it should be borne in mind that there
is a profit to the corporation not only in the sheet bars entering into their manu-
facture but in the pig iron and ore as well.
We have seen that the average net profit of the Steel Corporation
on all products sold to outsiders is $13 per ton; and in fact it is
claimed several times that export prices were higher than domestic
prices (see Gary, 3-96; Eoberts, 6-363; Schwab, 18-1304; and see
table of prices and tonnages exported made up by the Steel Corpo-
ration, 24-1770, 1771) ; and as we have seen the exports of the United
States Steel Corporation are 90 per cent of the foreign trade in steel
products (answer of United States Steel Corporation and others,
p. 38) or 95 per cent, as asserted by Mr. Lindabury, representing the
United States Steel Corporation as attorney (22-1572).
This control of 9.5 per cent or " upward of 90 per cent of the
total foreign trade of the country in steel products " has been made
possible by the consolidation of control in the United States Steel
Corporation, it is claimed, or as stated in the words of Mr. E. H.
Gary (3-104) :
I believe these companies could not do one-half or one-fourth of the export
business which we do if they were segregated or divided.
And, again, in considering the figures set forth above, it must be
noted that in October, 1903, the export company was allowed a com-
mission of 3 per cent (which was reduced to 2 per cent in Mar. 23,
1904), and it was provided that —
Any surplus over and above the actual requirements (of the export company)
is to be rebated to the different companies predicated on the value of the
tonnage sold for them.
VNITED STEEL PRODUCTS (EXPOET) CO.
The operations of this company can be illustrated by its income and charges
for the year 1910.
Income :
Commissions received from subsidiary companies' account, ex-
lX)rt sales $516, 636. 42
Interest and discount 36,358.10
Miscellaneous income 42,906.81
Foreig:n exchange, adjustment account 23,701.12
Commissions on pig-tin purchases and palm-oil purchases 12, 447. -38
Freight venture, chartered steamers 225,709.83
857, 759. 75
UJXITJSU STATES STEEL COEPOEATION. 3695
Charges :
Operating expenses, administrative and selling $771, 767. 22
Provision for contingent fund and unaudited liability 50, 000. 00
Eimployees' bonus fund 39, 695. 00
Taxes, State and local 3, 446. 65
864, 908. 87
Showing a deficit on the year of 7,149.12
14. Percentages of the business done by the United States Steel
Corporation are deceiving and misleading unless segregated with
reference to particular products. For example, Mr. Eoosevelt refers
to an estimate that the United States Steel Corporation did not have
above 60 per cent " of steel properties " (19-1370) or " steel hold-
ings " (19-1379), and when he was asked if Gary and Frick said
anything about the ore properties that they were buying at that time
he answered, " They did not go into details at all " (19-1379) , and he
also stated that he understood they were going to buy the Tennessee
company's " plant " (19-1379). If this estimate of 60 per cent refers
to property and investment in the steel business, it may be noted in
that year (1907) that the total property of the Bethlehem, Cambria,
Colorado, Lackawanna, Pennsylvania, and Tennessee companies
added to the capital stock of Jones & Laughlin (because statement of
property is not available) amounted to $365,768,889, from the best
sources available, i. e., Moody's Manual (3-116, 117), etc., these com-
panies being the only important concerns in the steel business in the
United States outside of the United States Steel Corporation. This
amount, added to that of the United States Steel Corporation, equals
a grand total of $1,811,606,339, of which the property account of the
United States Steel Corporation amounts to $1,445,837,450, or about
80 per cent.
And, as we have seen, the Minnesota Tax Commission estimated
the United States Steel Corporation's percentage of ore at 76 per
cent in 1907 and 80 per cent in 1909 in Minnesota (see Keport Com.
Corp., pp. 378-379).
The Minnesota ore is the basis of the steel industry (Eep. Com.
Corp., pp. 58, 380), and is the most available ore (Gary (3-83).
The estimate that the United States Steel Corporation controls 50
per cent of the available ore in the United States and that there are
billions of tons in the United States (3-80, 83; 4-215), as far as this
is suggested as bearing upon or affecting the state of competition in
the steel business, finds a striking commentary in the actual conduct
of the lairge steel corporations, viz :
(1) The United States Steel Corporation has acquired some
100,000,000 tons of iron ore in Cuba, while the Bethlehem Company,
now managed by the former president of the United States Steel
8696 UNITED STATES STEEL COKPOHATION.
Corporation, is said to have acquired 17,000,000 tons in Cuba, not-
withstanding the wetness of the ore and the carriage of it and need
for concentration, and other large concerns have acquired propor-
tionately large holdings there (15-1028, 1029).
(2) The United States Steel Corporation's subsidiary companies
have constantly purchased ore from other sellers. (See summary of
evidence " Ore purchases, year by year.")
(3) Notwithstanding the purchase for about $1,207,000 of the
plant, including blast furnaces of the Troy Co., as Mr. Gary said, to
utilize New York ore (4^-213), these furnaces have been allowed to
remain idle, while about the time that the said purchase was sug-
gested the United States Steel Corporation bought for the American
Steel & Wire Co. the output of 100 to 175 tons of pig iron per day
from April 1 to December 1, 1902, from the Cedar Point, Port Henry,
N. Y., furnaces of Piling & Crane. (A. S. W. Co., dir. min., Feb.
18, 1902.)
And as to the percentages given in the reports of the American
Iron & Steel Association (which are accepted by the United States
Steel Corporation (5-224, 225), and to which association, managed
by Mr. Swank, the Steel Corporation contributes money) , it will be
seen that higher percentages are given for the year 1907 than this
estimate of 60 per cent, to wit (as the figures are shown in the report
of Commissioner of Corporations, p. 362) :
Per cent.
Wire-rods production of United States Steel Corporation (in 1907) 71.5
Wire-nails production of United States Steel Corporation (in 1907) 66.4
Tin plates and terne plates of United States Steel Corporation (not given
for 1907, but for 1908) 72
Although for 1907 there is given in the report from the American associa-
tion statistics " plates and sheets," which are said in a note to Include
black plates for tinning and excluding nail plates 55. 8
But combined percentages appear upon their face to be averaged,
for example, in the year 1907 there is given —
Per cent.
Bars, skelp, nail plate, open hearth, and iron rails, and other finished
rolled products 33. 9
Now, this percentage is misleading, because it appears that the
United States Steel Corporatioin makes no iron rails for sale, as far
as is shown, and did not make open-hearth rails until 1908 (Report
Com. Corp., p. 364, note 4), while of skelp, which is used for tubes
and pipes, it undoubtedly made a large percentage ; and as to " other
finished rolled products " it is impossible to say whether it includes a
large number of products of which the Steel Corporation produces
little or no percentage. But, at any rate, it is clear that any such
combined percentages, added together and shown as an averaged per-
UNITED STATES STEEL CORPORATION. 3697
centage, are not only valueless for serious comparison, but mis-
leading.
In connection with this subject, the fact that the Steel Corporation
does not sell raw or semifinished products should be kept well in
mind to emphasize the importance of percentages of finished prod-
ucts, which are stated separately.
Supplementary and additional matter will be submitted in a sup-
plemental report.
Paraphrasing the language of the honorable Herbert Knox Smith.
Commissioner of Corporations, in submitting his data in regard to
costs to the Ways and Means Committee in 1908, it may be said
that these results appear simple and are stated in comparatively small
space, but they cover the essentially important data and accounts of
the largest corporation in the United States, including within its
operations those of about 12 major concerns which control over 180
subsidiary corporations throughout the United States in various lines
of business. This means an enormous volume of tonnage mined,
transported, smelted, manufactured, finished, and fabricated and an
enormous mass of transactions. As was said in the connection just
referred to, " I think it is safe to say that no such complete or accu-
rate figures have been compiled in this country (in relation to this
corporation) , and that while they necessarily involve some variations,
these are small in amount, and nothing approaching this statement in
reliability can be obtained from any other source."
In concluding this report, I desire to state that the data or infor-
mation contained herein and in its accompanying exhibits represent
an endeavor to cover as much ground in relation to the affairs of the
United States Steel Corporation as the time, the money, and the con-
ditions surrounding the work would permit, but it will be appreci-
ated by those who are familiar with the size and complexity of the
task that a more exhaustive examination of the records and evidence
and a more lengthy analysis and presentation of it would require a
great deal larger expenditure of time and money and the services of
a much larger force than was at my command.
Respectfully submitted.
Farquhae J. MaoRae,
Certified Public Accountant, State of New York.
31572— No. 53, pt. 1—12 7
EXHIBITS.
[Note. — All figures in italics represent deductione, or figures written in red ink in
the original report.]
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Exhibit 10.
Summary of profit and loss account for the nine years ended Dec. 31, 1910.
MANUFACTURING COMPANIES.
1902
Gross sales:
To subsidiary companies.
To outside custoiners
Sales adjustments
Total gross sales..
Operating charges:
Manufacturing and producing cost of product sold-
To subsidiary companies
To outside customers
Cost adjustments
Total operating charges
Deduct extinguishment funds and depreciation and replacement funds
charged through costs
Net operating charges
Administrative, selling, and general expenses .
Taxes, State and local
Taxes, Federal corporation
Insurance not charged through costs.
Commercial discounts and interest
Miscellaneous expense
Total operating charges and general expenses. .
Balance
Sundry manufacturing and operating gains and
Other income
■, net. .
Total income before interest charges.
Interest charges
Total earnings.
Less (set aside for depreciation and extraordinary renewals):
Bond sinking funds
Bepreciation, extinguishment funds, etc. (Exhibit iV).!.
Total depreciation, etc .
Net earnings before deducting bonus fund
Employees' bonus ftmd and special compensation to employees account
stock subscriptions
Net earnings .
$58, 356, 158. 45
389,245,402.26
447,601,560.71
47,839,067.75
294,076,685.43
341,915,
1,962,
753. 18
875. 12
339,952,
7,756,
1,169,
878.06
868.96
076. 26
2, 186,
13,
828. 02
153. 07
718. 30
351,368,522.67
96,233,
3,035,
1,914,
038. 04
448.03
786. 18
1903
848,585,583.48
378,466,068.96
1,545,021.77
425,506,630.67
42, 790,
299,112,
903,
593. 47
721. 75
854. 82
342, 807,
1,331,
170. 04
571. 08
341,475,
7,517,
1,459,
598. 96
321. 24
276. 74
51,
1,850,
18,
298. 02
307.63
793. 36
352,269,999.91
1151,944,059.26
304,523,356.00
1,/,16,1B6.15'
355,051,248.11
45,840,912 28
249,131,373.22
831,682.46
295,803,967.96
1,431,557.30
294,372,
6,892,
1,460,
410. 60
242.54
149. 17
u,
2,316,
21,
299. J^
71S. 45
232. 05
305,018,450 45
73,236,
251,
2,848,
630. 76
700.29
514.72
50,032,
105,
797. 66
121 19
722. m
101, 183,
1,576,
272. 85
312. 72
99,607,960.13
16,696,685.62
16,695,685.62
82,912,274.51
1,660,566.81
81,351,708.70
75,833,
3,328,
439. 19
660.72
62, 027,
3,463,
395. 96
906. 12
72,604,778.47 48,573,489.84
953,
17, 283,
921.07
393.99
713,630 78
6,384,311.59
18,237,315.06 7,097,942.37
64,267,
845,
463. 41
690.63
41,475,547.47
793, 646. 00
53,421,772.78 40,681,902.47
1906
1900
J73,316,767.45 18104,165,934.82
381, 276, 251. 78 452, 740, 221. 84
17,777.68
454,564,976.39
62,20.8,
299,667,
259,
070. 05
830. 28
20S. 15
361, 616,
2, 186,
698. 18
071. 50
359, 430,
7,490,
1,525,
626. 68
482. 54
412. 10
2, 994,
76,
992. 50
587. 26
239. 13
371,458,355.21
83, 106,
1,861,
2,223,
621. 18
433. 18
272.00
87,191,
4,148,
326. 42
821. 57
83,042,604.86
833, 743. 35
1,899,817.52
10,733,660.87
72,308,943.98
1,144,974.00
71,163,969.98
556, 878, 429. (
85, 391,
355, 510,
693,
647.06
030.16
445.45
441,595,
2,486,
022. 67
216. 76
439, 108,
8,213,
1,607,
806. 91
237. 62
143.98
58,
3, 655,
18,
769. 75
201. 14
447. 82
452,644,066.72
104,334,
2,302,
3,264,
362. 36
353. 82
535.68
109, 891,
4,792,
251.86
346.34
106, 098, 906. 62
843,897.89
17,444,709.37
18,288,007.26
86,810,299.26
2,078,797.00
84, 731, 502. 26
1907
1908
1909
$110,008,984.85
471,426,018.19
lSS,le5.B7
$65,220,168.02 $82,767,840.16
305,185,698.62 : 408,712,960.25
276,841.68 i
581,301,837.77 , 370,682,708.32 491,480,800 41
94,884,929.44
368,878,430.61
20,748.76
66,287,983.39
245,608,044.56
1,686,749.66
70,901,801.40
326,803,410.68
m, 948. 08
463, 784, 108. 81
144,687.23
303,482,777.61
436, 290. 64
396,610,264.00
441,312.66
463,639,421.68
8,930,106.99
1,768,165.24
303,046,486.97
9,313,043.19
2,030,892.54
41, 475. SO
3,962,011.65
478,248,230.16
103,053,607.61
1,649,730.85
2,717,829.09
107,321,167.56
4,749,737.72
102,671,429.83
SB, 918 90
2,707,181.06
396, 168, 951. 34
10,334,558.36
2, 405, 151. 66
672, 051. 43
27,966.80
3,621,613.12
317,060,684.86
63,622,023.46
817, 083. 26
2,804,668.17
413,074,369.61
78,406,430.80
454,687.87
2,290,304.06
1910
$81,830,338.60
456,961,212.31.
537,791,550.91
71,169,746.78
361,027,842.10
392,304.26
432,689,893.13
376,696.41
432,214,196.72
11,487,613.15
2,628,122.15
676,693.67
25,639.10
3,545,810.90
$676,195,885.09
3,647,537,189.21
^,87S,SSt.9S
4,220,859,742.37
577,374,657.62
2,798,816,368.79
4,014,629.17
3,380,205,655.68
10,796,278.70
450,426,697.3
87,364,863.62
10,691.04
2,260,263.38
57,243,764.89
6,775,082.23
51,468,682.66
848, 943. 16
13,306,202.39 [
715,592.40
7,831,626.62
14, 155, 146. 66
88,416,284.28
2,550,273.33
85,866,010.95
8,647,119.02
42,921,563.64
962, 788. 00
41, 958, 775. 64
81,151,422.73
7,002,627.26
89,604,425.86
7,334,796.24
74,148,896.47 82,269,629.62
940,384.72 | 1,133,294.66
11,941,663.68 1 12,364,604.37
12,881,948.40 13,487,899.03
61,266,947.07 | 68,781,730.69
1,446,856.61 1,745,692.34
59, 821 , 090. 46 67, 036, 138. 25
31572— No. 53. pt. 1—12, (To follow page 3717.) No 1.
3,369,409,376.88
77,936,474.59
16,953,389.84
1,248,646.00
55,521.27
26,829,681.28
148,430.66
3,491,469,376.98
729,390,366.39
9,653,216.09
22,403,886.83
761,447,467.31
42,161,189.92
719,286,277.39
6,983,408.03
113,141,815.16
120,126,223.18
699,161,064.21
13, 128, 182. 72
586,032,871.49
Exhibit 19.
" • P<umiiiary surplus account of the United States Steel Corporation and subsidiary companies from Apr. 1, 1901, to Dec. 31, 1910.
[Prepared for the purposes of reconciliation of general profit and loss account— Exhibit IS.]
I. L'nited States Steel Corporation— Surplus, gross: " :
Dec 31. Losses to date Ijrought from Exhibit 18 $16,232,586.10
1904.
Mar. 31. Surplus invested in and -KTitten oft to property accounts $1,130,728.56
H. C. Friclc Coke Co., general account 752, 270.01
Federal Steel Co., general account 1, 773, 901. 75
National Tube Co., general account 869, 527. 02
Shelby Steel Tube Co., general account _ 39,443. 62
American Bridge Co. , New Jersey, general account 2, 381 , 632. 35
1906.
6, 947, 503. 31
Jan. 31. Provision for contemplated appropriations and expenditures for additional property and
construction 2,500,000.00
Surplus invested in and written off the property accounts 2, 000. 00
Dee. 31. Appropriated surplus for investments in advances to be made account Gary Indiana plant. 5,000,000.00
Balance— United States Steel Corporation surplus carried down 55, 886, 295. 56
;, 568, 384. 97
1910. . -
Dec. 31. Surplus account charges and adjustments;
Elgin, Joliet & Eastern R. R. Co. account, adjustment and doubtful ac-
counts receivable .160, 000. 00
Material in transit, adjustments to profit and loss account 50, 829. 17
Duluth & Iron Range adjustment (this company and Duluth, Missabe &
Northern Ry 50.00
Bunsen Coal Co., powder inventorv adjustment 1,700.40
Bunsen Coal Co. , inventory adjustinent 2, 995. 40
Universal Portland Cement Co. , contingent fimd adjustment 12, 500. 00
Universal Portland Cement Co. , package fund adjustment 21 , 500. 00
Illinois Steel Co., shortage in roll (inventory account) 65,755.29
American Sheet & Tin Plate Co., correction in distribution appropriation
. X-, No.2112 2,457.89
Duluth, Missabe & Northern liabilities not taken up in accounts 20,000.00
Appropriation from surplus to cover capital expenditures 15,000,000.00
Special appropriation account Garv plant 10, 000, 000. GO
Reserve account advanced royalties 1, 000, 000. 00
Balance down..
31572— No. 53. pt 1—12. (To follow page 3717.) No. 10^
26,227,688.15
164,143,157.99
190, 370, 846. 14
1901.
Apr. 1. Capital surplus provided at date of organization.,
1910.
Dec. 31. Profits to date brouijht from Exhli>it IS
$25,000,000.00
61,568,384.97
86,568,384.!
1910. !
Deo. 31. Balance down, United States Steel Corporation surplus -so, 886, 295. 56
Subsidiary companies surplus accounts gross:
Carnegie Steel Co S21, 328,859. 52
H. C. Frick Coke Co 2. 040, 267. 03
Oliver Iron Mining Co 17; 347, 799. 73
Pittsburg Steamship Co 3, 473, 027. 97
National Mining Co 80, 360. 01
Federal Steel Co V . 35,447, 001. 33
American Steel & Wire Co 20, 692, 098. 64
National Tube Co 1, 987, 764. 45
Shelbv Steel Tube Co 441, 317. 18
American Sheet* Tin Plate Co 1,739,642.13
American Bridge Co 2, 251, 713. 51
Lake Superior Consolidated Iron Mines 22, 541,442. 23
Union Steel Co 126, 798. 39
Clalrton Steel Co 898, 086. 47
Tennessee Coal, Iron & R. E. Co 4,088,381.99
134, 484, 550. S8-
190,370,846.14
Balance brought down:
Inventory profits in inventorv special surplus account 33,704,439.32
United States Steel Corporation, surplus 130,438,718.67
164,143,167.99
Exhibit 20.
Consolidated general balance sheet, Dec. SI, 1910.^
ASSETS.
Property account:
Properties owned and operated by the several companieSj balance of this account as of Dec.
31,1910 $1 , 547, 884, 381 . 23
I>ess balances at Dec. 31, 1910, to credit of—
Accrued bond sinking, depreciation, and replacement funds $65,802,823.77
Bond sinking funds with accretions, being income appropriated for general
depreciation and invested in redeemed bonds not treated as assets (but
interest on which is currently added to the sinking funds) and in cash as
below 51,868,696.70
■,,: . .- - •...,.., , 117,671,520.47
'*'-■"■''"' ■■ ""■'■ " '* ' ■"' ■ _ 1,430,212,860.70
Deferred charges to operations:
Payments for advanced mining royalties, exploration expenses, and miscellane-
ous charges, chargeable to future operations of the properties 15,331,704.91
Less fund reserved from surplus to cover possible failure to realize advanced
mming royalties 7, 000, 000. 00
8,331,704.91
Investments: Outside real estate and investments in sundry securities, including
real estate mortgages and land sales contracts 2,369,394.04
Sinking and reserve fund assets:
Cash resources held by trustees accoimt of bond sinking funds (in addition
trustees hold S51,641,500 of redeemed bonds, which are not treated as an asset). 856, 519. 00
Contingent fund and miscellaneous assets 3, 295, 464. 79
Insurance and depreciation fund's assets (securities at cost and
cash ) $21 , 668, 921 . 45
Less amount of foregoing represented by capital obligations of
subsidiary companies authorized or created for capital expen-
ditures made (see contra) 9,753,000.00
11,915,921.45
16,067,906.24
Current assets:
Inventories 2 176, 537, 823. 71
Accounts receivable 44, 603, 273. 63
Bills receivable 5, 540, 180. 77
Agents' balances 696,833.76
Sundry marketable bonds and stocks 4, 410, 793. 61
Cash (in hand and on deposit with banks, bankers, and trust companies sub-
ject to check) V 66, 953, 514. 16
288,742,419.84
1,745,724,284.49
LIABILIIIES. - A;
Capital stock of United States Steel Corporation
Common $508, 302, 500. 00 -
Preferred 360, 281, 100. 00
$868,583,600.00
Capital stocks of subsidiary companies not held bv United States Steel Corporation
(par value) .' 620,352.60
Bonded and debenture debt outstanding:
United States Steel Corporation 60 year 5 per cent bonds 274,412,000.00
United States Steel Corporation 10-60 year 6 per cent bonds 190,777,600.00
465,189,500.00
Subsidiary companies' bonds, guaranteed by United States Steel Corporation. . 62, 774, 000. 00
Subsidiary companies' bonds, not guaranteed bv United States Steel Corpora-
tion 78, 366, 661 . 61
Debenture scrip, Illmois Steel Co 31, 706. 19
696,351,866.70
Capital obligations of subsidiary companies authorized or created for capital expen-
ditures made (held in the treasury subject to sale, but not included in assets or
liabilities 1 1, 909, 000 00
Mortgages and purchase money obligations of subsidiarv companies:
Mortgages ". " 784,792.38
Purchase money obligations 2,313,000.00
3,097,792.38
Current liabilities:
Current accounts payable and pay rolls 23, 695,264.04
Bills payable 813, 500. 00
Special deposits or loans due employees and others 886, 122. 16
Accrued taxes not yet due, including provision for corporation excise tax 6, 789, 827. 16
Accrued interest and unpresented coupons 7,991,373.15
Preferred stock dividend No. 39, payable Feb. 27, 1911 6,304,919.25
Common stock dividend No. 29, payable Mar. 30. 1911 6,353,781.26
62,834,787.01
Total capital and current liabilities 1, 621, 488, 398. 69
Sundry reserve funds:
Contingent and miscellaneous operating funds 11, 689, 728. 70
Insurance funds 8,402,999.21
, 20,092,727.91
Appropriated surplus to cover capital expenditures:
Invested in property account — additions and construction 35, 203, 189. 22
Reserved for account future construction at Garv, Ind.. plant 4,796,810.78
40,000,000.00
Undivided surplus of United States Steel Corporation and subsidiary companies:
Capital surplus provided in organization 26, 000, 000. 00
Balance of surplus accumulated by all companies from Apr. 1. 1901, to Dec. 31,
1910 105,438,718.67
Total surplus exclusive of subsidiary companies' intercompany profits in
inventories 130, 438, 718. 67
Undivided surplus of subsidiary companies, representing profits accrued on
sales of materials and products to other subsidiarv comDanies and on hand in
latter's inventories ". '. 33, 704,439.32
164,143,157.99
1,746,724,284.49
1 Not verified except as to surplus.
2 Inventory valuations include profits accrued to subsidiary companies on materials and products sold to other subsidiary companies and undisposed of by the latter — see contra specific surplus account for these profits. The total
valuations of all inventories are below' the actual current market prices.
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 11. ■ . ■
j . ' _ Exhibit 21.
Surplus account of United States Steel Corporation, and its subsidiary companies, from Apr. 1, 1901, to Dec. 31, 1910.
Balance from prior year (contra)
Surplus or working capital provided in organization
Net earnings from Apr. 1, 1901, to Dec. 31, 1901
Net earnings for years 1902 to 1910,|inclusive,per Exhibits i-9
Profits (or losses) accrued on sales of materials from sub-
sidiary companies to other subsidiary companies, and
on hand in the latter's inventories, per Exhibit 16
Adjustments of sundry accounts, "Subsidiary companies'
surplus"
Total credits .
Interest on United States Steel Corporation 50-year 5 per
cent gold bonds
Interest on United States Steel Corporation io^eo year S
per cent gold bonds
Sinking fund on United States Steel Corporation SO^year
5 per cent gold bonds
Sinking fund on United States Steel Corporation io-60
year 5 per cent gold bonds
Interest on above bonds in sinldng funds
Total interest, etc...
Dividends on preferred stock, United
ration _
Dividends on common stock, United States'steei Corpo-
ration
Steel Corpo-
Total dividends.
Expense conversion of preferred stock and sale of 10-60
year gold bonds
Charged oft for expenditure made from surplus since Apr
1, 1901, for construction and for payment ol capital,
liabilities etc ....
Specifically set aside for authorized appropriation's account
construction Gary plant
Reserved for fund to cover possible failure to realize
advanced mining royalties.
Charged off for depreciation in inventory valuations and
for adjustment of sundry accounts, etc., and also adjust-
ments ot sundry accounts United States Steel Corpora-
tion surplus j 1,207,886.84
Jjaiance to subsequent year (contra) i 43, 520, 940. 30
Total debits.
31572— No. 53, pt.1-^12. (To follow page 3717.) No. 12.
:Ak
j . ' _ Exhibit 21.
Surplus account of United States Steel Corporation, and its subsidiary companies, from Apr. 1, 1901, to Dec. 31, 1910.
Balance from prior year (contra)
Surplus or working capital provided in organization
Net earnings from Apr. 1, 1901, to Dec. 31, 1901
Net earnings for years 1902 to 1910,|inclusive,per Exhibits i-9
Profits (or losses) accrued on sales of materials from sub-
sidiary companies to other subsidiary companies, and
on hand in the latter's inventories, per Exhibit 16
Adjustments of sundry accounts, "Subsidiary companies'
surplus"
Total credits .
Interest on United States Steel Corporation 50-year 5 per
cent gold bonds
Interest on United States Steel Corporation io^eo year S
per cent gold bonds
Sinking fund on United States Steel Corporation SO^year
5 per cent gold bonds
Sinking fund on United States Steel Corporation io-60
year 5 per cent gold bonds
Interest on above bonds in sinldng funds
Total interest, etc...
Dividends on preferred stock, United
ration _
Dividends on common stock, United States'steei Corpo-
ration
Steel Corpo-
Total dividends.
Expense conversion of preferred stock and sale of 10-60
year gold bonds
Charged oft for expenditure made from surplus since Apr
1, 1901, for construction and for payment ol capital,
liabilities etc ....
Specifically set aside for authorized appropriation's account
construction Gary plant
Reserved for fund to cover possible failure to realize
advanced mining royalties.
Charged off for depreciation in inventory valuations and
for adjustment of sundry accounts, etc., and also adjust-
ments ot sundry accounts United States Steel Corpora-
tion surplus j 1,207,886.84
Jjaiance to subsequent year (contra) i 43, 520, 940. 30
Total debits.
31572— No. 53, pt.1-^12. (To follow page 3717.) No. 12.
:Ak
Exhibit 22.
Surplus account of United States Steel Corporation and its subsidiary companies — Summary, Apr. 1, 1901, to Dec. 31. 1910.
Capital surplus provided at date of organization .or ««« ,^„;^ „,
Net earnings from Apr. 1 to Deo. 31, 1901 i-rnini^Vo; $2S, 000, 00«. Ou
Xetearningsfrom Jan. 1,1902, to Deo. 31, 1910 fn-nSn'if^S
yuo, 009,00/. /"
Total net earnings for the period nnn qii os
Less interest and sinking funds on United States Steel Corporation 50-year and 10-60-year S per cent bonds i;!;!;!!!!!;!!!!!!!!!;;;;;;;;!;:;. '!.'!;.';!;;;;. ■;:;.;;;.'!; 253066247 45
Balance after deducting interest on bonds .„„ „,. „.. ,.
L(igg; - 7.iO, 9o4, U04. o6
-^...v,i^uwi,wuu^vi viiijiD.1. lojjiooouiiug ouisiLicu pi uii IB ou iiiibi uouipauy lud iBiiais on nana m inventories— carried to "Special surplus" below... in ■^71 sn^ M
Net charges against profits made at close offlscal year, not applicable to particular years y y ^ u ow .u,rf<i,bUd./o
Reserved for fund to cover possible failure to realize advanced mining royalties .'.".'."."."."'.'.'.'.'.'.'.'.".'.'.'.'.".'.'.'.'.'.'.'.'.'.'.'.'."."".'.'.' -'ooo'ono on
24,741,096.64
VS'^, • —702,192,965.99
Balance of profits earned ' '' ' ' \ ino lusa rui
DiTidends paid on United States Steel Corporation stocks, viz: ' '' "^' '*'■ ^
Preferred, 684 per cent „.„ a^a boo ra
Common, 24i per cent ; i;;;;-;-:;;;;;;;;:;;";;;:;::;::;;::;:;:::;:::::::::;;;;;;;;;;;:;;;:;;:;;;;;;;;;;:;;;;:;::;;;;;;:;;;:;':'' m'IM'S?:*
'- '- '- — 393,926,53'). 18
Leaving a surplus of ~~
Of the foregoing surplus the following amounts have been appropriated for the "purposes named: ' 333,266,032.33
For payment of capital liabiUties, construction, and special charges i ^it 897 sKi i k
Specifically set aside lor authorized appropriations account Construction Gary Plant '.'.'.'.'.".'.".".".".'.".'.'.'.'.'.'.'.'.'.!'.'.'.'.;'.'. '.'.!'.■/.;■."■.■.■.!;■.■.■.!!;!■.".;;".".;'.■.■.■. ■.■.■..■.'. 65' OOo' OOo' 00
'- '- ^ 202,827,364.15
T- J • ?f '™<='^ 0' surplus Deo. 31, 1910, exclusive of subsidiary companies' intercompany profits in inventories, termed herein " Special surplus account "... no 433 -n h-:
° T?E^?er'trom|eLra^s^te''ac'??m{ D?° ?l"iw3' ^^^'^' "P"^^''*'"^ profits accrued on sales of materials to other subsidiary companies and on hand in latter's Inventories, ^t: ' '
Transferred per Exhibit 21 '...! '.'.".'.!.'.'.".".' hh'i'kV k-W ith ^0' ^'1' *'3- ^o
Additional adjustments on mtercompany profits. Exhibit 21 -■-^- •■■-------"■ ■"-^^^""."--i-iiiii.'i!"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!'.!!'. '.!'.!'.!!!!'.'.".;''! C5l''o79'20
' 23,332,636.07
33,704,4.39.32
Total undivided surplus Deo. 31, 1910 ,„, , ,„ ,.. ,,
161, 143, 1-3?. 99
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 13.
Exhibit 23.
Properly account, as prepared from annual reports of corporation, from Apr. 1, 1901, to Dec. SI, 1910.
property. | ^ ''
1901 ,Apr. 1. Property acquired at organization $1, 420, 537, 993. 90
Less surplus of subsidiary companies at date of
acquirement of their stocks by United States Steel
Corporation .\pr. 1, 1901 116,356,111.41
Dec. 31. Sundries
1902, Dec. 31. Sundries j -^- ■■■•.• ■
1903, Dee. 31. Union Steel Co.'s properties, cost as acquired Dec. 1,
1902
Dec. 31. Sundries - -
1904, Dee. 31. Sundries
Dec. 31. Clairton Steel Co.'s properties, cost as acquired May I,
1,304,181,882.49
30,280,632.07
1904
1905, Deo. 31. Sundries
1906, Dec. 31. Sundries
1907, Dec. 31. Sundries
1908, Dec. 31. Sundries _ .
Tennessee Coal, Iron & R. R. Co.'s properties, cost of
10,769,560.42
fixed property as acquired Nov. 1, 1907 148,961,208.83
ded for construction in November and Decem-
984,886.74
Expended for construction in November and Decem-
ber
49,946,095.57
1909, Dec. 31. Sundries.
1910, Dec. 31. Sundries.
Less balance at Dec. 31, 1910, to credit of:
Accrued bond, sinlting, depreciation, and replacement funds. .
Bond sinlring funds with accretions
1,395,168,170.65
65,802,823.77
51,868,696.70
Stripping and
development
at mines.
$16,956,868.63
16,586,631.77
$Ue,HS.9S
31,042,136.97
17,957,946.17
237,602.11
IS,9B0.7S
24,395,408.49
32,156,146.46
66,611,088.36
49,422,697.42
646,213.01
84,823.16
114.841- ie
$1,420,537,993.90
116,366,111.41
$6,722,340.61
4,675,041.26
6,639,547.33
Total debits.
33,769,320.30
60,091,369.04
4s,oee.28
1,208,770.61
4,166,930.25
3,009,862.76
Total
Balance of property account at Dec. 31, 1910.
338,978,512.60 | 1,639,635.39 } 23,103,712.21
1,304,181,882.49
16,956,868.63
16,140,688.84
30,280,632.07
31,279,638.08
17,929,026.44
10,759,660.42
26,041,621.50
37,962,310.23
71,186,129.61
54,947,401.29
49,946,095.67
37,868,184.27
64,309,992.31
Bond sinking
fund.
Depreciation,
improvement,
extinguish-
ment and
replacement
funds.
Charged off
to undivided
surplus.
Total credits.
Net total.
$1,420,637,993.90
116,366,111.41
1 $4,211,246.11
426,000.00
618,986.49
1,406,500.00
572,500.00
660,000.00
1,758,790,030.75
401,000.00
446,000.00
8,742,231.60
$12,011,866.53
7,988,010.01
3,196,773.48
2,699,360.74
2,063,052.64
4,680,421.03
3,892,342.49
6,012,309.18
4,691,937.76
46,136,053.76
$17,234,128.58
8,493,235.58
$12,011,856.63
29,433,884.70
12,116,009.06
16,769,298.70 18,977,634.93
30,615,844.26 34,085,396.80
63,949,799.46 69,202,720.49
22,089,854.60 26,642,196.99
6,605,396.13
1,379,807.96
11,918,704.31
6,617,746.71
156,027,364.16 210,905,649.52
,304,181,882.49
16,966,868.63
4,128,832.31
30,280,632.07
1,846,263.38
6,813,016.38
10,769,560.42
6,063,986.57
3,876,913.43
11,983,409.12
28,305,204.30
49,946,095.67
26,949,479.96
47,792,246.60
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 14.
1 Bond, inking, depreciation, and extinguishment funds
1,647,884,381.23
117,671,520.47
1,430,212,860.76
*4;
Exhibit 24.
Expenditures for ordinary maintenance and repairs, including blast-furnace relinings,for the nine years ended Dec. 31, 1910.
1902
1903
1904
1905
1906
1907
1908
1909
1910
Total.
Manufacturing properties, including blast-furnace relining.
116,099,217.94
881,804.77
355,220.12
3,858,455.64
35,519.66
$16,046,276.00
967,706.49
299,204.79
4,379,038.10
153,190.00
$12,857,738.82 i
983,389.61
209,476.11
3,970,839.14
134,055.76
$16,661,943.49
1,472,450.57
274,443.76
5,431,368.37
136,423.20
$20,648,213.19
1,453,759.13
292,086.71
6.777,308.05
145,543.36
$24,738,766.34
1, 527, 646. 74
438,110.56
8,603,906.29
195,340.39
$18,168,932.29
1,740,563.61
572,405.87
6,678,202.89
168,861.13
$22,706,195.36
2,238,868.40
716,816.92
8,125,027.60
216,490.87
$27,193,463.10
2,408,665.74
896,723.29
10.028,089.30
291,967.89
$175,119,745.63
13,674,743.06
Iron-ore properties
4,054.487.12
57,862,234.38
Miscellaneous properties... . . .
1,477,372.25
21,230,218.13
21,845,413.38
18,155,498.43
23,976,629.38
29,316,910.44
35, 503, 668. 32
27,328,956.79
34,002,389.16
40.818.899.32
252,178,582.34
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 15.
t
Exhibit 25.
United States Steel Corporation—Adjusted net earnings for the period from Apr. 1, 1901, to Dec. 31, 1910.
Year.
1901.
1902.
1903.
1904.
1903.,
1906.
1907. .
1908. .
1909..
1910. .
Amounts restored to net earnings.
Net earnings as
shown by annual
reports.
174, 960, 704. 21
108,634,374.25
83,675,786.51
57,791,196.80
96,432,595.93
125,966,938.13
133,244,929.28
74,882,529.11
107,773,099.96
116,738,157.80
Adjustments by
corporation in
sundry accounts.
980,000,311.98
31572— No. 53, pt. 1--12. (To follow page 3717.) No. 16.
tl, 107, 886. Si
S,4B7,e40.SS
13, 108. 34
99, ess. 78
90,601.19
681, BIS. 52
394,034.59
548,445.08
818, 182. 6i
•9,292.29
Sinking funds on
bonds of subsidiary
' companies.
Locked-up inter-
company profits.
$636, 128. 51
624,064.43
1,598,012.48
1,683,116.76
1,689,999.46
1,904,063.60
1,977,761.03
1,588,070.45
1,724,259.65
2,176,041.18
16,401,517.46
tl,2Si,SSe.i8
6,307,189.83
2,739,403.74
9,744,692.61
426,983.86
2,617,395.64
2,751,309.08
23,332,636.07
Special deprecia-
tion cliarged for
construction.
$7,667,059.39
7,667,059.39
Employees' bonus
funds, etc.
$2,321,313.63
1, 956, 792. 74
1,631,563.76
2,301,838.88
3,925,010.70
4, 777, 650. 78
1,476,676.28
2,899,526.75
3,380,703.31
Interest on bonds,
mortgages, and
purchase-money
obligations of sub-
sidiary companies.
Total adjusted net
earnings.
24,670,078.83
$3, 963,
6, 114,
6,539,
6,559,
6, 687,
6,535,
6,492,
7,401,
7,887,
7,263
871. 49
661.20
847. 45
154. 21
104. 16
211.11
196. 42
205.18
178. 18
453. 66
$79,
116,
96,
66,
113,
140,
155,
86,
123,
131,
460, 704. 21
386,426.67
009,938.24
323,805.39
319,474.48
980, 126. 99
665,713.60
168,499.46
449,905.16
491,480.39
66,443,782.06
1,109,146,093.49
•-4:%-_A»' S*^
iun .'-.'
Exhibit 26.
United States Steel Corporation — Statement showing disposition of adjiisted net earnings by the corporation, Apr. 1, 1901, to Dec. 31, 1910.
Dee. 31. 1910, total adjusted net earnings from Apr. 1, 1901, to date, per Exhibit 25 '^' », imiir nQ<! /o
Interest and sinking rands on United States Steel Corporation 50-year and 10-60 year 5 per cent gold bonds $253 066 247 4^
Dividends paid on United States Steel Corporation stoclcs: ' '
Preferred, 68i per cent $269,414,628.66
Common, 24J per cent 124,512,267.60
^Q^ Q'^fl SSfi Ifi
Amount appropriated for payment of capital liabilities, construction, and special charges 137 827 364 16 ' " '
Specifically set aside for authorized appropriations account, construction Gary plant \ 65 'ooo' DOo' 00
Special depreciation amount in 1903, charged to construction .[\\............. [..[..... 7' 667' 069. 39
— . 210 494 423 55
Reserved for fund to cover possible failure to realize advanced mining royalties , 7'ooo' 000 00
Interest on bonds of subsidiary companies is' 40l' 517 45
Interest on bonds, mortgages, and purchase-money obligations of subsidiary companies ' 65' 443' 782* 06
Specifically charged for employee's bonus funds, and special compensation account, preferred stock subscriptions .V. ............................. V...... li 67o' 078! 83
. , , 970,002,935.60
Balance carried dowu— _ 139 143 157. 99
Balance brought down, being surplus at Dec. 31, 1910, divided as follows:
Inventory profits in inventory — " Special surplus account" — per books {33 794 439 32
United States Steel Corporation — earned surplus, per books. Exhibit 25 !..!!!!!"!!!!!![! I05' 438' 718! 67
Total..
1,109,146,093.49
139,143,157.99
Add capital surplus provided at date of organization, Apr. 1, 1901 .".".".'.'.'!-"!.'.'.'!.'!!!!!.".'!.'.'."!!.'.'.'.'.".'. 25 000' 000 00
164, 143, 157. 99
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 17.
Exhibit 27. ■ ' ^, ;
Comparison of securities issued by United States Steel Corporation in 1901 with amounts of securities of constituent concerns and cash acquired therefor.
Compani-^s.
Securities and cash ,
acquired.
United States Steel stock issued for
each JlOO old stock.
Amount United States Steel securities issued in exchange.
Carnegie Co.:
Bonds, etc ;
Stock (all common) ['/,[
Federal Steel Co.;
Preferred stock
Common stock
National Tube Co. :
Preferred stock
Common stock
American Steel and Wire Co. of New Jersey:
Preferred stock "
Common stock
National Steel Co.:
Preferred stock
Common stock - './..]
American Tin Plate Co.:
Preferred stock
Common stock ,
American Steel Hoop Co.-
Preferred stock
Common stock
American Sheet Steel Co.:
Preferred stock
Common stock
American Bridge Co.:
Preferred stock
Common stock
Lake Superior Consolidated Iron Mines, common stock
Oliver Iron Mining and Pittsburgh Steamship Companies (one-sixth interest) .
Shelby Steel Tube Co: '
Preferred stock
Common stock
Total securities acquired by direct exchange
United States Steel stocks issued to syndicate for $174,000, par ^alue of stocks acquired other-
wise than by dfrect exchange, and for 525,000,000 cash capital and underwriting services
Stock sold to incorporators for cash _
Total
Underlying bonds of constituent companies
Mortgages and purchase-money obligations of constitueii
Grand total, securities issued and assumed.
Preferred.
~ Common.
Bonds.
sisg.-ioo.ooo.oo
160,000,000.00
53,260,200.00
46,483,700.00
39, 997, 400. 00
39,937,400.00
39,998.500.00
49,901,900.00
26,992,200.00
31,969,800.00
18,325,000.00
27,995,000.00
13,997,500.00
18,995,000.00
24,497,700.00
24,498,800.00
31,348,000.00
30,946.400.00
29,413,906.00
421,700.00 ;
4.776,100.00
8,018,200.00 .
881,224,405.00
174,000.00
23,000,000.00
3,000.00
906,401,405.00
$110.00
4.00
125.00
8.80
117.50 |.
123.00 ,.
125.00
20.00 !
100.00
100.00
110.00
"i35."66'
$159,450,000.00
144,000,000.00
1107. 50
"125.' 66
"i62.'56
"i25."66
"'i25."66'
"i66.'66'
"i66."66"
Preferred stock.
$98,277,120.00
58,586,220.00
1,859,348.00
49,996,750.00
3,514,491.00
46,998,237.00
33,740,250.00
Common stock.
22,906,230.00
5,599,000.00
105. 00
135.00
23.00
24,497,700.00
34, 482, 800. 00
39,708,771.00
9,250,000.00
1.791,038.00
303,450,000.00 !
443, 20.5, 475. 00
64,998,768.00
1,600.00
Total.
$90,279,040.00
49, 969, 978.' 66
"'49J92i,"756.'66'
""5i.'i49.'448.'66
39,962,256.66
"34," 993," 756.' 66
13,997,500.00
18,996,000.00
24, 498, 800. 00
32, 493, 720. 00
39,708,771.00
9. 260. 000. 00
2,004,560.00
443,227,057.00 '
64,998,837.00
1,500.00
303,450,000.00; 510,205,743.00 608,227,394.00
$492,006,160.00
"ii6'4i5,'346.'66
"i6:S,' 432,991.' 66
""98,"i47,"685.'oiJ
""7:3!762,'56o.'66
"si,' 499," 666.' 66
""32,' 992^506.' 6()
"'48.' 996,' 506.' 06
66,976,620.00
79, 417, 542. 00
18. .500, 000. 00
3,795,688.00
1,191,882,632.00
129,907,605.00
'^' 3,000.00
1,321,883,137.00
69,091,667.00
21,872,023.00
1,402,846,817.00
31572— No. 53, pt. 1—12 (To follow page 3717.) No. 18.
Exhibit 11.
Summary of profit and loss account for the nine years ended Dec. SI, 1910.
COAL AND COKE COMPANIES.
Gross sales:
To subsidiary companies
To outside customers
Sales credited to construction .
Sales adjustments
Total gross sales .
Operating charges:
Manufacturing and producing cost of product sold-
To subsidiary companies
To outside customers
Cost adjustments
Total operating charges
Deduct extingulsbment funds and depreciation and replacement funds
charged through costs
1902
$18,716,017.74
4,864,814.23
23,580,831.97
12,353,894.62
2,640,163.90
14,994,058.62
Net operating charges
Administration, selling, and general expenses .
Taxes, State and local
Taxes, Federal
Insurance not charged through costs
Total operating charges and general expenses .
Balance
Simdry manufacturing and operating gains and losses (net) .
Other income
Total income before interest charges.
Interest charges
Total earnings .
Less (set aside for depreciation and extraordinary renewals):
Bond sinking fund
Depreciation, extinguishment fimd, etc. (Exhibit 17)
Total depreciation, etc.
Net earnings before deducting bonus funds
Employees' bonus fund and special compensation account preferred stock.
Net earnings .
14,994,058.52
373,098.59
207,327.92
33,363.86
15,607,848.89
$21,791,463.69
972,316.98
22,763,780.67
11,474,354.85
430, 888. 37
11,905,243.22
11,905,243.22
360, 652. 88
223,331.53
45, 426. 78
12,534,654.41
7,972,983.08 ! 10,229,126.26
599,084.82 ' 498,282.45
428,811.73 ; 346,78.3.69
1904
$15,893,299.46
281,920.14
16,175,219.60
1905
$24,143,761.77
956, 143. 93
225,605.88
10,726,763.42
149,085.97
10,875,849.39
230, 649. 04
10,645,200.36
344,716.80
263,723.62
11,308,811.10
9,000,879.63 \ 11,074,192.40
402,146.34 I 306,629.15
,733.29 , 10,767,663.25
1,816,743.51
1,816,743.51
6,781,989.78
75,500.00
6,706,.
9, 636. 28
1,448,246.52
1,457,882.1
9.780.45
9,990.00
1,209,790.45
4, 866, 408. 50
473,658.52
45,785.61
6,385,862.63
246,359.68
5,139,492,95
26,602.36
1,904,139.40
1,930,741.76
3,208,751.19
41,495.00
25,325,511.58
16, 131, 108. 80
640,849.26
16,771,958.06
321,347.19
16,450,610.87
447,495.29
300,379.24
1906
$29,180,246.85
122,585.48
8,07t.S8
1,294,759.75
18,599,817.01
62,843.67
6,872.02
1907
$30,160,762.32
33,636.86
140,4£B.^1
7,571.30
30,061,648.27
1909
$16,676,598.26
113,519.03
1S£, 984.71
$26,614,401.86
270,577.13
8.70, 0S7.es
16,606,132.57 26,529,961.36
21,673,627.36
17,358.74
310.05
18,669,532.70
345,991.25
18,323,541.45
501,394.24
327,337.04
63,133.33
71,376.28
17,261,618.73 ! 19,223,649.01
1,063,892.85 10,071,110.74
693.630.08 I 699,645.18
279,274.17 543,326.96
1,036,797.10
405,648.69
;, 631, 148. 51
11,314,082.88
415, 125. 49
10,898,957.39
62,273.21
3,237,890.77
3,300,169.98
5,330,978-53
66,444,00
3,167,256.19
103, 167. 73
2,960,509.36
3,063,677.09
7,835,280.30
123,696.40
5,264,534.53 : 7.711,683.90
21,691,296.14
319,459.89
21,271,836.26
633,932.44
396,851.34
22,202,620.03
7,858,928.24
690,299.46
455,421.86
1,004,649.56
340,604.79
8,664,044.77
2,761,248.78
6,902,795.99
143,762.17
10,716,640.13
77,384.39
5,436.33
17,320,368.76
196,273.80
9,&7S.80
10, 799, 459. 83
187,225.17
10,612,234.68
443,880.35
446,038.7(1
17,606,668.76
305,261.58
1,217.91
11,503,371.70
5, 102, 760. 87
466,696.32
80,019.15
6,649,476.34
367, 429. 43
5,292,046.91
60, 824. 3a
1,561,340.39
1,622,164.74
3,669,882.17
47,612.00
5,759,033.82 i 3,622,270.17
17,201,407.18
495,408.55
453,184.01
63,067.39
563.75
18,213,630.88
1,316,320.48
624,307.60
130,072,81
i, 070, 700, 89
466,993.24
8,603,707.65
90,122.21
2,391,781.38
1910
$27,794,678.15
265,894.33
Total.
28,060,572.48
19,815,260.22
159,735.56
5,710.94
19,980,706.71
319,053.34
19,661,663.37
581,233.93
587,518.06
62,299.98
585.00
20,883,290.34
7,177,282.14
661,393.67
100,910.46
7,939,586.27
812, 763. 14
7,126,823.13
2,481,903.59
133,211.41
2,342,997.74
2,476,209.15
$210,970,230.10
7,881,408.11
878, 4S4.ee
225,104.60
218,398,308.25
138,711,836.16
4,374,583.65
8,354.54
143,094,773.
2,028,987.46
141,066,785.89
4,081,813.07
3,205,691.52
115,367.37
270, 837. 24
148,739,495.09
69,658,813.16
5,406,998.10
2,410,406.44
77,476,217.70
3,753,699.85
73,722,617.85
583, 686. 49
20,327,054.91
20,910,741.40
6,121,804.06
78,267,00
4,650,613.98
96,758.00
0,043,537.06 4,553,865.98
62,811,876.45
773,524.57
52,038,351.88
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 2.
Exhibit 12.
Summary of profit and loss account for the nine years ended Dec. SI, 1910.
IRON-MINING COMPANIES.
1908
1909
1910
Total.
Gross sales:
To subsidiary companies.
To outside customers
$49,806,464.36
4,122,527.16
$46, 179, S«9. 49
2,331,839.21
836,645,035.67
1,424,596.67
$58,381,765.02
1,489,176.71
$71,796,605.89
1,370,832.64
$91,380,357.56
1,763,807.81
$62,882,214.65
794, 176. 52
$77,627,967.43
615,271.11
$86,946,260.62
300,660.02
$571, 645, 530. 58
14,212,886.75
Total gross sales.
63,928,981.61
1,611,708.70
38,069,632.14
69,870,941.73
73,167,438.53
93,144,165.37
53,676,390.17
78,243,238.64
87,246,920.64
586,858,417.33
Operating charges:
Manufacturing and producing cost of product sold-
To subsidiary companies
To outside customers ,
Cost adjustments
38,217,319.66
3,676,668.26
31,565,868.03
2,161,527.02
29,524,006.72
1,405,172.54
44,449,480.68
1,530,268.30
49,389,873.77
1,484,636.99
54,319,680.96
1,762,271.46
33,059,228.20
823,562.46
64,635.55
50,761,416.41
609,004.13
264, 762. 95
66,086,702.60
312,476.06
19,771.84
387,362,476.83
13,665,486.21
299,516.86
Total operating charges
Deduct extinguishment fund and depreciation and replacement funds
charged through costs
41,793,887.81
1,881,608.68
33,707,395.05
1,878,337.37
30,929,179.26
1,360,240.83
46,979,748.88
2,053,764.11
60,874,510.76
2,090,750.44
66,081,862.42
3,046,707.98
33,937,326.21
1,973,800.36
61,635,173.49
2,730,581.65
66,378,405.82
2,911,299.71
401,317,479.70
19,927,081.12
Net operating charges
Administrative, selling, and general expenses...
Taxes, State and local
Taxes, Federal corporation
Insurance not charged through costs
Commercial discounts and interest
Exploration expenses on properties abandoned.
Miscellaneous expense
1,912,279.13
690,448.82
567,816.47
31,829,057.68
516,156.98
683,262.41
29,568,938.43
417,744.76
765,817.57
43,925,994.77
571,680.26
846,989.36
48, 783, 760. 32
576, 884. 14
1,306,075.44
63,035,144.44
660,826.78
1,998,236.37
210.04
9,694.71
239,804.46
5,478.33
14,488.72
388,845.73
31,963,625.86 48,904,591.84
693,616.30 658,973.09
1,846,186.73 3,336,063.00
231,214.84
53,467,106.11
646,410.93
3,455,752.26
129, 124. 35
117,645.30
72,771.00
,782.71
"lib'.il
6,
"iii,
414. 49
sse.'ei
381,390,398.58
6,030,641.05
14,796,197.61
360,339.19
6,688.37
39,380.63
746,195.48
187,647.20
Total operating charges and general expense.
Balance.
41,410,252.62
33,437,289.85
30,942,817.05
45,353,236.69
50,787,021.00
65,594,206.59
Sundry manufacturing and operating gains and losses, net.
Other Income
12,618,728.89
528,467.06
1,600,058.45
15,074,418.86
517, 840. 94
1,400,058.90
7,126,815.09
295,991.82
988,622.16
14,517,705.04
956,125.30
1,052,254.48
22,380,
884,
1,174,
417.53
918. 79
696.88
37,549,958.78
687,676.44
1,284,013.84
19,273,062.28
55,989.71
867,938.57
Total income before interest charges.
Interest charges
14,547,264.40
636,079.57
16,992,318.69
426,081.61
8,411,329.07
386,294.35
16,625,084.82
428,326.70
24,440,
433,
033.20
301.49
39,421,649.06
393,641.81
20,086,011.14
386,891.20
Total earnings
Less set aside for depreciation and extraordinary renewals (Exhibit 17) .
Total depreciation, etc
14,011,174.8
16,666,237.08
1,026,034.72
16,096,758.12
24,006,731.71
39,027,907.25
19,698,119.94
3,093,964.78
2,669,943.62
1,938,295.17
3,123,574.1
3,226,823.03
4,440,609.52
2,499,367.!
3,093,964.78
2,669,943.62
1,938,295.17
3,123,574.88
3,226,823.03
4,440,609.52
2,499,367.95
et earnings before deducting bonus fund
Nmployees' bonus fund and special compensation to employees account
Estock subscriptions
10,917,210.06
128,959.81
13,896,293.46
112,619.11
6,086,739.65
78,907.26
12,973,183.24
113,171.38
20,779,!
204,!
34,687,297.73
251,044.95
17,198,751.99
99,988.77
Net earnings
I IZUlgO ........................................................ ±U, I'
31572— No. 53, pt. 1—12. (To follow page 3717.) No.
10,788,250.24
13,783,674.35
6,007,8,32.29
12,860,011.86
20,574,960.23
34,336,252.78
17,098,783.22
63,030,842.77
57,597,393.65
402,556,388.11
25,212,396.77
606,867.62
579,698.97
29,648,526.99
308,689.76
307,376.25
183,302,029.22
4,527,488.02
9,154,618.50
26,298,962.36
383,818.39
30,262,593.00
386,525.24
196,984,1?5.74
3,780,960.36
25,915,143.97
29,876,067.76
193,223,175.38
3,440,012.78
3,386,141.66
27,818,733.29
3,440,012.78
3,386,141.66
27,818,733.29
22,475,131.19
131,476.39
26,489,926.20
159,102.00
165,404,442.09
1,280,198.12
22,343,654.;
26,330,824.20
164,124,243.97
3.
Exhibit 13.
Summary of -profit and loss account for the nine years ended Dee. SI, 1910.
TRANSPORTATION COMPANIES.
ross earnings from operations.
Deduct operating expenses • r-.-y
Less extinguishment funds and depreciation and replacement fimds
charged in operating expenses
Net operating expenses
Administrative, selling, and general expenses
Taxes, State and local
Taxes, Federal
Commercial discounts and interest
Miscellaneous —
Total operating charges and general expenses
Balance - ■
Sundry manufacturing and operating gains and losses
Other income
1902
$.33,778,544.64
18,622,833.18
1,446,037.73
17,076,795.46
""444; 633! 89'
6,'436.'22
Total income before interest charges..
Interest charges
Total earnings .
Less (set aside for depreciation and extraordinary renewals):
Bond sinking fund ,■■,■■■
Depreciation, extinguishment fund, etc. (Exhibit 17) . .
Total depreciation, etc .
Net earnings before deducting bonus funds
Employees' bonus fund and special compensation account, preferred stock.
Net earnings .
17,527,865.66
10,250,679.08
264,377.84
278,044.45
16,783,101.37
5, 446, 822. 72
11,336,278.65
024,064.43
2,302,820.90
2,926,885.33
8,409,393.32
227.474.14
8.181,919.18
1903
132,460,205.10 $30,002,041.80
18,318,^35.04
1,486,729.23
10,832,114.81
663.045.72
17,336.71)0.63
15, 120, 444. 67
33.947.11
55,236.63
15,209,628.31
6,157,875.03
10,051,763.28
634,4,55.13
2,283.372.72
2,917,827.85
7,133.625.43
109. !i,- 9. 00
16, 627, 264. 94
1,429,643.24
16,197,721.70
''492,'947;45'
iym.'ii'
15,687,795.96
14,914.245.84
76,811.90
71,259.77
15,062,317.67
5,151,689.87
9,910,727.70
842, 883. 02
2.113,454.92
2,856,338.54
6.954,389.16
73,180.00
$43,660,261.43
21,348,308.31
1,482,825.13
19, 865, 483. 18
'""883!680.'28'
e', 414.70
904, 766. 30
21,646,916.00
21,913,346.37
89,733.26
341,790.16
22, 344, 869. 78
4, 489, 904. 05
17,854,966.73
793,982.90
4,900,799.13
5,694,782.03
12, leO, 183. 70
116,418.00
12,044,71:5.70
$47, 776, 493. 46
24, 267, 820. 68
1,586,912.31
22,670,908.27
987,380.02
6,'m.K
23,651,561.04
24,123,932.42
781,735.00
469, 766. 14
23,801,963.56
4,643,400.48
19, 158, 547. 10
956,997.88
4,384,111.02
6,341,108.!
13.817,438.20
211,104.00
13,606,334.20
$51,468,639.;
28,648,698.94
1,987,396.68
26,561,302.36
'"i,'085!364!37'
64,' 676.' 56'
27, 710, 677. 29
23, 747, 962. 60
261,713.39
700,350.61
24,710,026.60
4, 699, 427. 21
20, 110, 599. 39
1,016,386.60
4, 808, 202. 79
6,824,588.39
14,286,011.00
257,636.99
14,028,475.01
$38, 736, 125. 94
22,299,807.21
1,946,510.97
20,363,296.24
"""886," 794.' 90
21,240,091.20
17,495,034.74
55,649.22
625; 803. 00
18,076,486.96
4,954,113.27
13,122,373.69
786, 653. 70
3,414,012.00
4, 200, 660. 30
8,921,707.39
92.698.00
8.829,009.39
$64,743,222.55
27,469,019.12
2,181,141.08
25,287,878.04
1,204,581.26
228,828.66
$66,311,109.70
31,005,699.43
2,390,060.35
28,669,639.08
"i,"275,'79S.'6i
216,491.94
26,721,287.80 30,160,929.63
28,021,934.69
25,694.96
681, 798. 61
26, 150, 180. 07
27,199.89
648,232.34
28,678,138.24 26,671,212.62
5,065,496.65 4,814,328.12
23,012,642.59 21,866,884.40
668,762.72 i 884,535.11
4,119,048.66 I 3,869,420.29
4, 787, ;
4,743,961.40
18,824,841,21 17,112,923.00
136,689.00 163,392.00
) 8, 088, 1,52. 21 16.949,631.00
TotaL
$389,420,644.51
208, 458,
15,943,
286.75
147. 62
192,615,139.13
7,764,
444,
9,
904,
64,
166. 56
320.60
678.92
766.30
070.66
201,682,884.13
187, 737,
3, 662,
760.38
297. Cf!
271.00
191,337,
44,322,
734.91
962. 38
147,014,772.63
7,208,711.09
32,185,249.03
39,393,960.12
107,620,812.41
1,387,450.13
106,233.362.28
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 4.
Exhibit 14.
Summary of profit and loss account for the nine years'mded Dec. 31, 1910.
MISCELLANEOUS COMPANIES.
1902
j
1903
1904
1905
1906
1907
1908
1909
1910
Total.
Grossearnings from operations '.
$4,870,684.96
$4,866,914.98
14,729,629.32
»5, 777, 800. 44
$6,006,55L21
$6,386,798.63
$4,773,968.79
$6,920,421.29
$6,616,626.33
$49,949,194.95
Deduct operating expenses
3, 287, 716. 53
3,282,171.36
3,267,621.44
4,240,127.74
4,468,223.41
4,864,489.68
3,797,593.88
4,889,598.94
6,321,632.68
644. 49
37,409.175.86
644. 49
Less extinguisliment funds and depreciation and replacement funds
charged in operating expenses
Net operating expenses
3,287,716.53
3, 282, 171. 36
3,267,621.44
4,240,127.74
4,458,223.41
4,864,489.68
122, 196. 01
56,620.56
3,797,693.88
118,603.97
62,593.69
4,889,598.94
170,058.28
108, 827. 23
10,775.43
123. 35
6,320,988.19
196,115.21
139, 703. 86
8,716.06
37, 408, 531. 17
606,975.47
588, 667. 49
19.491.49
Administrative, selling, and general expense
Taxes, State and local
40,928.23
63, 158. 60
33, 727. 36
39,237.76
43,860.31
Taxes, Federal
Insurance not charged through costs
Commercial discounts and interest "
1,047.24
1,904.10
687.50
2,951.34
10,989.16
Miscellaneous
11,678.76
Total operating charges and general expenses
3,328,644.76
3,345,329.96
3,302,396.03
4,281,957.10
4,490,406.96
5,043,306.25
3,978,793.44
5,179,383.23
3, 666, 523. 32
38,615,741.05
Balance
1,641.940.20
9, 473. 97
236, 746. 51
1,521,585.02
2. 42B. 85
247, 183. 38
1,427,233.29
1,272.69
171,293.68
1,495,843.34
2,79».69
248,619.32
1,516,144.25
1,202.44
310,908.93
1,343,492.38
4,518.82
331, 206. 17
796,175.36
16, 682. 61
196,813.63
741,038.06
114,400.81
225,820.79
951,002.01
9,434.40
129,652.28
Sundry manufacturing and operating gains and losses, net
156, 619. 9<)
Other income
Total income before mterest charges
1, 788, 160. 68
1,384.65
1,771,197.25
481. 99
1,599,799.56
459.07
1,741,669.97
18,042.18
1,828,255.62
46,216.86
1,679,217.37
46,720.18
1,008,67L59
102, 470. 63
1,081,259.66
100,478.89
1,089,988.69
98,236.68
Interest charges
Totaleamings
1,786,776.13
1,770,713.26
1,599,340.49
.
1,723,627.79
1,782,038.76
1,632,497.19
906,200.96
980,780.77 ]
991,752.01
Less (set aside for depreciation and extraordinary renewals):
Bond sinkmg fund
14,683.33
623,668.87
26,000.00
70,863.46
1
25,000.00
101,647.83
25,000.00
198,252.11
89, 583. 33
2,819,248.20
Depreciation and extinguishment fund, etc. (Exhibit 17)
241, 110. 23
211,250.85
232,461.35
502,974.74
737,118.77
Total depreciation, etc
241,110.23
211,230.85
232.461.36
602,974.74
737,118.77
538, 152. 20
93,863.45
126,647.83
223,252.11
Net earnings before deducting bonus funds
1,545,665.90
14,665.87
1,569,464.41
13,378.00
1,366.879.14
10, 770. 00
1,220,653.03
26,127.00
1,044,919.99
38,006.60
1,094,344.99
46,077.84
810,337.61
16,664.00
864,132.94
22,674.00
768, 499. 90
28,906.66
Employees' bonus fund and special compensation account preferred stock. .
215,168.97
Net earnings
1,531,000.03
1,346,086.41
1, 356, 109. 14
1,195,626.05
1,006,913.39
1,048,267.16
794,773.51
831,468.94 1
739,694.24
I
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 5.
Exhibit 15.
Summary of profit and loss account/or the nine years ended Dec. 31, 1910.
UNITED STATES STEEL CORPORATION AND FEDERAL STEEL CO.
1902
1903
1904
1905
1906
1907
1908
1909
1910
Total.
Gross sales and earnings:
To subsidiary companies
To outside customers
Gross earnings of transportation and miscellaneous companies
Sales adjustments
Total gross sales and earnings
None.
Operating charges:
Manufacturing and producing cost ot product sold—
To subsidiary companies
To outside customers i
Operating expenses of transportation companies
Cost adjustments
I
Total operating charges
None.
Deduct extinguishment funds and depreciation and replacement funds
........
Net operating charges
None.
$1,023,770.22
111,959.52
$1,417,193.00
93,336.99
$1,311,295.18
86,491.94
$1,008,137.83
86,023.79
$1,002,719.74
86,706.63
$1,030,612.96
85,765.41
■ $1,023,555.03
88,664.62
$1,029,367.95
90,064.65
384.03
$989,784.84
91,689.70
626.41
$9,836,426.75
819,693.15
1,010.44
Taxes, Federal corporation
Insurance not charged through costs
Commercial discounts and Interest
Exploration expenses on properties abandoned
Miscellaneous expenses
1,537.95
689,919.98
59i,457.93
Total operating charges and general exoense
1,135,729.74
1,512,067.94
1,987,707.10
1,094,161.62
1,088,426.37
1,116,378.37
1,112,209.66
1,119,806.53
1,082,100.95
11,248,688.27
i,m,n9.7i
171,036.61
1,403,556.23
1,111,067.94
1,987,707.10
1,094,161.62
1,088, 426. S7
1,116,S78.S7
1, 422. 44
4,714,632.51
l,llB,m9.6S
1,538.01
4,022,571.15
1,119, 806. SS
244,004.07
4,706,908.96
1,082,100.95
2,701.61
6,028,058.90
11,248,588.17
420 702 74
Sundry manufacturing and operating gains and losses net
1,292,764.30
1,226,353.47
2,340,791.32
3,625,730.78
29,360,356.62
438,862.10
149, 707. 78
St9,S)S.8i
316,034.27
7e2,SSS.6S
116, 105. 73
1,246,629.70
197,290.81
2,637,304.41
181,003.59
3,599,676.58
83,526.24
2,911,899.51
23,296.13
3,831,106.50
48,748.22
4.948,659.56
56.377.20
18,632,471.09
1,170,089.97-
239, 154. 32
5Si,Si7.91
877,419.36
1,049,338.89
2,366,300.82
3,516,150.34
2,888,603.38
3,782,368.28
4,892,282.36
466,473.66
17.362,381.12
456,473.66
Less (set aside for depreciation, etc.)
1 1
Net earnings before bonus fund .....
289.154.32
314, 148. 00
m4,S47.91
.775,166.00
877,4S9.S6
633,568.50
1,049,338.89
836,704.60
2,366,300.82
1,268,458.25
3,516,150.34
1,528,966.50
2,888,603.38
267,045.51
3,782,358.28
1,084,563.75
4,4.36,808.71
1.186,953.31
16,906,907.47
7,885,554.32
Employees' bonus fund and special compensation to employees' account
Net earnings
U,s9s.es
LS09,oOS.91
1,611. og7.se
212, 634. 39
1,087,842.57
1,987,193.84
2,631,567.87
2,697,794.53
3,248,855.40
9,020,353.15
»
Exhibit 16.
Summary of profit and loss account for the nine years ended Dec. 31, 1910.
ALL COMPANIES COMBINED.
Grand total.
EiimtTtution ofiji"
ter company inter-
est and adjust-
ment of other
accounts.
United States
Steel Corporation
and Federal Steel
Co.i
Manufacturing
companies.
Coal and coke
companies.
Iron mining
companies.
Transportation
companies.
Miscellaneous
companies.
Gross sales and earnings;
To subsidiary companies
To outside customers - ■
Gross earnings of transportation and miscellaneous companies
Sales credited to construction
Sales adjustments
Total gross sales and earnings
Operating charges:
Manufacturing and producing cost of product sold —
To subsidiary companies
To outside customers ._
Operating expenses of transportation and miscellaneous companies
Cost adjustments
Total operating charges
Deduct extinguishment funds and depreciation and replacement funds
charged through costs
Net operating charges
Administrative, selling, and general expenses
Taxes, State and local
Taxes, Federal corporation
Insurance not charged through costs
Commercial discounts and interest
Exploration expenses of properties abandoned
Rentals ■
Miscellaneous expenses
Total operating charges and general expense
Balance
Sundry manufacturing and operating gains and losses (net)
Other income
Total income, before interest charges
Interest charges
Balance
Less profits included above by subsidiary companies on account of mate-
rials in transit not yet taken up
Total earnings
Less set aside for depreciation and extraordinary renewals (Exhibit 17)
Net earnings before deducting bonus funds
Employees' bonus fund and special compensation account preferred stock
subscriptions
Net earnings
I Includes Carnegie Company far the year
v 31372— No. 53, pt. 1—12. (To follow page 3717.)
$1,418,988,132.78
3,589,629,995.97 I
439,339,579.28
5,424,631,04.3.14
1,072,394,
2,808,767,
245,867,
9, 333,
960. 09
212.68
4ti2. 41
776. 21
2 4, 136, 363,
48,693,
411.29
139. 39
4,087,667,
97.491,
43, 127,
2, 189,
221,
26,859,
743,
23,
978,
271. 90
330. 93
893. 17
173. 99
127. 69
604.96
195. 48
110.57
367.09
4,259,304,078.78
1,166,326,
23,621,
36,656,
967.36
484. 47
634.42
1,225,604.
61,699,
986.26
779. 61
1,164,005,
22,681,
206.64
558. 87.
1,141,323,
211,613,
649. 77
933. 17
929, 709,
24,670,
686. 60
078. 83
903,039,607.7
$39,S2S,S1S.99
1,488.10
SO, 260. 18
S9,8B5,261.S7
$876,195,886.09
3,647,537,189.21
$210,970,230.10
7,881,408.11
$571,645,530.58
14, 212, 886. 75
2,873, SSI. 9S
678,434.6
226, 104. 6
4,220,859,742.37
218,398,308.26
686,868,417.33
31,054,009.52
8,079,226.07
5,011,275.84
S4, 121,959. 75
577,374,657.62
2,798,816,368.79
138,711,836.16
4,374,683.66
387, 362, 476. 83
13,656,486.21
4,014,629.17
8,334.64
299,516.66
3,380,206,656.68
10,796,278.70
143,094,773.36
2,028,987.46
401,317,479.70
19,927,081.12
$389,420,644.51
9,420,644.51
208,468,286.75
•U, 121,959.75
ioo.'oo'
$9,836,426.76
819,693.16
1,010.44
3,369,409,376.88
77,936,474.69
16,953,389.84
1,248,645.00
65,521. 27
23,829,681.28
141,035,785.89
4,081,813.07
3,205,691.52
113,367.37
270,837.24
881,655.73
2, 150. 00
381,390,398.58
6,030,641.05
14, 796, 197. 61
360,339.19
5,688.37
39,380.63
743, 195. 48
208,458,
15,943,
286. 75
147. 62
148,430.66
187,547.20
35,008,394.86
11,248,688.27
3,491,469,376.98
148,739,496.09
402,656,388.11
4,848,866.42
3,518,765.69
32,433,161.16
11,248,
420,
■29,330,
688.^
702. 74
358. 62
729,390,365.39
9,653,216.09
22,403,885.83
69,668,813.16
5,406,998.10
2,410,406.44
183,302,029.22
4,627,488.02
9,154,618.60
33.781,260.89
33,983,513.90
222,253.01
22,881,656.87
22,469,303.
22,459,303.86
18,532,
1,170,
471. 09
089. 97
761,447,487.31
42,161,189.92
77,476,217.70
3,763,699.86
17,332,381.12
719,286,277.3
73,722,617.85
17,3^2,
455,
381. 12
473. 65
719,286.277.39
120,126,223.18
16,905,
7,885,
907. 47
554. 32
599,161,054 21
13, 128, 182. 72
22, 459, 303. 86 i
9, 020, 363. 15
586,032,871.49
73,722,617.85
20,910,741.40
52,811,876.45
773,524.57
196,984,133.74
3,760,930.36
193,223,175.38
193,223.175.38
27,818,733.29
192,616,139.13
7,764,
444,
166. 53
320. 50
< 578. 92
904,
64,
766.30
070. 66
201,682,884.13
187,737,
62,
3,662,
760. 38
2S7.07
271. 60
191,337,
44, 322,
734. 91
962.38
147,014,772.53
147,014,772.63
39,393,930.12
166,404,442.09 |
1,280,198,12 i
107.620,812.41
1,387,460.13
52,038,351.88
164,124,243.97
103,233,332.28
$49,949,194.96
49, 949, 194. 95
37,409,175.66
37,409,175.66
644. 49
37,408,631.17
606,975.47
688,637.49
19,49L49
123.36
2,961.34
38,615,741.03
11,333,463.90
166,619.90
2,098,146.59
13,688,220.39
414,491.03
13,173,729.36
13,173,729.36
2,908,831.63
10,264,897.83
215,168.97
10.049,728.86
^Includes charges for ordinary maintenance and repairs $152,178,582.34. (See Eihibit I4.)
No. 7.
Exhibit 17. |
Detailed summary of depreciation, extinguishment, and replacement funds, etc. for the nine years ended Dec. 31, 1910.
Manufacturing companies.
Depreciation and extinguislinient funds
Improvment and extraordinary replacement funds (direct)
Depreciation, improvement, and extraordinary replacement funds (through
costs)
Special depreciation and improvement fund
Total depreciation, etc
Bond sinking fund
Total.
$1,420,642.25
71,810,319.42
1902
$273,998.46
5, 960, .348. 85
9,610,853.48 1,761,338.31
30,300,000.00 8,700,000.00
Coal and coke companies.
Depreciation and extinguishment funds
Improvement and extraordinary replacement funds (direct)
Depreciation, improvement, and extraordinary replacement funds (through
costs)
Special depreciation and improvement fund
Total depreciation, etc
Bond sinking fund :
Iron mining companies.
Depreciation and extinguishment funds
Improvement and extraordinary replacement fund (direct)
Depreciation, improvement, and extraordinary replacement funds (through
costs)
Special depreciation and improvement fund
Total depreciation, etc
Bond sinking fund .'
Transportation companies.
Depreciation and extinguishment funds "
Improvement and extraordinary replacement funds (direct) '.
Depreciation, improvement, and extraordinary replacement funds (through
costs)
Special depreciation and improvement fund
Total depreciation, etc
Bond sinking fund [
113,141,815.15
6,983,408.03
16,695,885.62
Miscellaneous companies.
Depreciation and extinguishment funds
Improvement and extraordinary replacemeni: fund (direct) .
Total depreciation, etc
Bond sinking fund
Grand total .
SUMMARY, ALL COMPANIES.
Depreciation and extinguishment funds
Improvement and extraordinary replacement funds (direct)
Depreciation, improvement, and extraordinary replacement funds (through
costs)
Special depreciation and improvement fund
Total depreciation, etc
Bond sinking fund
120,125,223.18 16,695,685.62
13,987,233.44 1,372,097.12
3,710,946.79 ; 94,664.39
2,028,874.68
600,000.00 ! 350,000.00
20,327,054.91
583,686.49
1,816,743.51
20,910,741.40 1,816,743.51
-14,584,489.02 2,493,964.78
1,833,219.30
10,801,024.97
600,000.00 600,000.00
1903
$279,615.54
5,837,027.33
1,166,751.12
110,000,000.00
$172, 786. 66
4,936,4.50. 9i
1,275,073.97
17,283,393.99
953,921.07
18,237,315.06
1,254,114.96
194,131.56
1,448,246.52
9,636.28
1,457,882.80
2,408,171.19
219,818.21
27,818,733.29 3,093,964.78
None. I
27,818,733.29 ! 3,093,964.78
5,122,336.05 I 504,783.68
9,537,593.36 | 1,999.49
15,943,147.62 1,446,037.73
1,582,172.00 : 350,000.00
32,185,249.03 ' 2,302,820.90
7,208,711.09 I 624,064.43
9, 393, 960. 12 2, 926, 885. 33
1,208,874.72 189,884.24
1,610,373.48 ; 51,225.99
2,819,248.20 I 241,110.23
89,583.33 '
2,908,831.53
241, 110. 23
211,157,489.52 | 24,774,389.47
36,32.3,575.48 4,834,710.28
88,502,452.35 0,108,2.38.72
38,383,900.75
33,082,172.00
3,207,376.04
10,000.000.00
2,669,943.62
2,669,943.62
466,320.35
330,332.14
1,486,720.23
2,283,372.72
634,455.13
2,917,827.85
190,454.77
20,796.08
211,250.85
211,250.85
25,494,220.18
4,598,676.81
6,602,105.32
2, eg.?, 425. 57
10,000,000.00
6,384,311.59
713,630.78
7,097,942 37
1,301,953.66
371,533.70
230,649.04
1,904,139.40
2.1,602.3:)
1,812,644.58
100,759.i:5
24,890.94
$168,694.06
6,710,838.64
2,020,254.92
1,000,000.00
9,899,817.52
833,743.35
10,733,5.0.87
1,819,271.73
1,097,277.85
321,347.19
3.237,893.77
62,273.21
3,300,169.98
2,870,731.92
234, 230. 84
18,582. 12
1,938,295.17 3,123,574.88 3,226,823.03
1906
$144,670.35
7,449,942.61
2,350,096.41
7,500,000.00
17,444,709.37
843,897.89
18,288,607 23
1,941,156.42
673,331.69
345,991.25
2,930,509.36
103, 167. 73
3,033,677.09
2,827,692.64
345, 922. 39
$29,005.52
10,032,509.64
144,687.23
3,100,000.00
13,303,202,39
848,943.16
14, 155, 145. 55
1,788,144.48
307,795.47
319,459.89
250,000.00
2,663,399.84
97,848.94
1,938,295.17 3,123,574.
422,842.01
261,069.67
1,429,543.24
2,113,454.92
842,883.62
2,956,338.54
196,939.64
35,521.71
232,461.35
232,461.35
14,155,779.19
3,907,166.55
5,705,338.69
2,900,157.19
196,292,100.58 24,150,325.04
14, 865, .388. 94 i 624,064.43
Extinguishment funds charged through holding companies.
Grand total
211, 157, 489. 52« 24, 774, ,389. 47
456,473.65 I
211,613,963.17 i 24, 774, ,389. 47
23,896,207.70
1,698,012.48 ]
12,572,662.43
1,583,116.76
25, 494, 220. 18 14, 155, 779. 19 23, 355, 062. 50
671,725.20
1,514,076.80
1,482,825.13
1,232,172.00
3, 226, 823. 03
4,900,799.13
793,982.90
5,694,782.03
314,528.26
188,446.48
502,974.74
502,974.74
23,355,062.50
5,844,981.17
9,744,900.51
3,843,009.36
2,232,172.00
21,665,063.04
1,689,999.46
25,494,220.18 ' 14,155,779.19 23,355,062.50
703, 872. 46
2,093,326.25
1,686,912.31
4,384,111.02
956,997.88
5,341,108.90
240,019.04
497,099.73
737,118.77
30,657,335.05
5,867,410.91
11,059,652.67
4,336,207.97
7,500,000.00
2,761,248.78
1,127,3,0.41
2.!6.541.13
3,046,707.1
$40,9U-S4
7, 436, 180. 32
436, 290. 04
7,831,526.62
715, 592. 40
8,547,119.02
1,030,382.73
343,732.49
187,226.17
1,531,340.39
60,824.35
4,440,609.62
4,440,609.52
1,622,104.74
277, 730. 29
247,837.31
1, 973, 800. 35
$185, 146. 32
11, 495, 161. 68
231,255.78
11,941,553.68
940,384.72
12,881,948.40
1,737,573.16
348, 946. 64
305,231.68
2,391,781.38
90, 122. 21
2,499,367.95
2,499,367.95
2,481,903.69
429, 955. 67
279,476.46
2,730,581.65
1910
$207,669.68
11,951,829.59
195, 106. 10
12,354,604.37
1,133,294.66
13,487,899.03
1,744,557.18
279,500.00
318, 940. 56
2,342,997.74
133,211.41
3,440,012.78
2,476,209.15
333,207.64
138,634.31
2,911,299.71
3,440,012.78
705,309.09
2,115,497.12
512,336.04
955,165.59
1,987,396.58 1,946,510.97
4,808,202.79 3,414,012.60
1,016,385.60 786,653.70
5, 824, 588. 39 4, 200, 566. 30
8,825.33
514, 743. 54
523,668.87
14, 583. 33
638,152.20
27,719,744.44
3,656,644.83
13,237,086.90
6,498,251.68
3,360,000.00
28,753,271.56
1,904,063.60
25,741,983.41
1,977,761.03
30,667,335.05 \ 27,719,744.44
30,667,335.05 27,719,744.44
7, 549. 30
63,314.15
70,863.46
25,000.00
95,863.45
16,965,181.46
1,787,054.02
9,046,229.86
4,643,827.13
15,377,111.01
1,588,070.46
16,965,181.4
16,965,181.46
804, 781. 28
1,133,126.30
2,181,141.08
4,119,048.86
668,752.72
4,787,801.38
28,313.32
73,334.51
101, 647. 83
25,000.00
126,647.83
23,718,313.98
3,185,769.75
13,330,044.49
5,478,240.09
21,994,054.33
1,724,259.65
23,718,313.!
3,386,141.56
3,386,141.56
330, 365. 94
1,133,000.00
2,396,060.35
3,869,426.29
884,535.11
4,743,961.40
32,360.82
165,891.29
198,252.11
25,000.00
223,252.11
24,317,463.25
2,651,161.16
13,688,856.19
6,821,405.72
22,141,422.07
2,176,041.18
24,317,463.25
456,473.65
24,773,936.90
31572- No. 53, pt. 1—12. (To follow page 3717.)
Of this amoun t of $10,000,000 there was subsequently charged to construction $7,667,069.99.
No. 8.
Common stock owned
Preferred stock owned S16, 497. ol
American Bridge Co. , preferred stock owned 1 , d46, 083. 25
Oliver Iron Mining Co., preferred stock owned 350,000.00 ,
Lake Superior Consolidated Iron Mining Co., stock owned 1, 176, 971. 76
Shelby Steel Tube Co., preferred stock owned
Pittsburgh Steamship Co., preferred stock owned
Clairton Steel Co., preferred stock owned ■
1,330,000.00
980,000.00
1,647,290.76
630,000.00
245,000.00 '.
1,647,124.50 i
600,000.00
6,590,738.78
349,041.50
600,000.00
1,766,496.46
124, !)95. 00
200,000.00
3,82,5,242.33
350,000.00
2, 746, 207. 60 2, 746, 207. 50 ! 4, 392, 332. 00
5, 690, 738. 78
350,000.00
9,121,731.70 I 10,004,479.!^
.Miscellaneous earnings
Interest on deposits
Interest received on loans and advances
Interest on the Carnegie Co. coUateral trust bonds
Interest on deferred payments, employees' preferred stock
subscriptions ■
Interest received on uninvested cash blances in sinking ;
fund.
40,593,720.51 72,897,233.76
213. 96
460,364.79
165,079.17
7,999,362.60
358,754.70
1,919.46
3,979,374.99
90, 166, 166. 28
408.34
379, 923. 91
666, 716. 79
7,996,850.00
52,466.11
700,000.00 :
210, 000. 00
40,339,296.96
422. 99
505,731.69
677,839.16
7,997,850.00
69,151.27
66,417,776.33
282. 39
468, 686. 72
1,561,085.18
7,997,850.00
53,596.77
86,020,562.28
2,226.40
428,869.18
2,-319,726.01
7,997,860.00
49, 126. 76
76,723,807.20
3,893.86
841,642.10
2,283,201.62
7,997,860.00
66,152.17
56,350,336.04
7, 916. 01
609,899.73
2,790,207.38
7,997,860.00
60,860.06
Interest on subscription receipts, Tennessee Coal, Iron &
R. R. Co
Income on investments in marketable securities
Appreciation in value of securities
Income on investments for 60-year 5 per cent gold bond
sinking fund
Income on investments for sinking fund
Dividend on preferred stock employees' subscriptions
canceled
Miscellaneous earnings on employees' preferred stock
subscriptions
Oain in sales of marketable securities
ilncomo on bills and loans receivable
Oain in value of marketable securities offered under
employees' stock subscription plan
Profit in sale of securities to sinking fund trustees
Recovery in dep reciation in book value of securities
Tilxpenses, account Tennessee Coal, Iron & R. R. Co
Premium in sale of subsidiary companies' bonds, received
by United States Steel Corporation in payment for con-
struction advances
•Gain in sale of United States Steel Corporation stock
Dividends received on United States Steel Corporation
stock
Net losses
19, 445. 63
12, 600. 00
3,342,506.!
55,795,722.26
33, 544. 56
19,399.41
43, 447. 45
39, 263. 00
27.60
132,519.41
46,865.30
39, 606. 37
827, 274. 71
6, 553. 76
11,602.50
26, 963. 50
9,752.23
163, 633. 53
7,390,079.14
81,624,744.17
9,386,211.35
57,206,915.04
66,775,036.33
97,845,973.62
7,908.19
1,007,436.06
33,776.88
683,673.815
46,030.25
41,891.5D
33, 40O. 00
778,860.17
234,430.48
237,643,04
516,333.85
70, 776. 51
497, 238. 27
3, 333. S3
2,196,166.00 I 2,147,124.50
17,360,715.19
700,000.00
1,225,000.00
76,237,494.19
2, 302. 84
431,725.19
4,150,664.56
7,997,860.00
89, 325. 93
197,922.34
32, 617. 00
178, 666. 32
513. 88
3,671.75
12,253,864.09
700,000.00
22, 170. 00
3,100,000.00
81, 428, 455. 59
2,701.61
490,448.30
5,010,380.36
7,997,860.00
65, 774. 31
4,971.32
31,270.00
142,934.45
35, 027. 75
3, 600. 00
208. 33
85,004.15
226,688.50
89,800,181.62
9,156,388.03 88,386,264.00 : 95,494,044.67
1,330,000.00
2,041,497.51
19,715,577. .;0
2, 400, 000. CO
66,689,969.03
2,224,995.00
243,870.00
4,236,000.00
675,164,849.04
20,368.39
4,976,036.31
19,615,807.89
77, 969, 637. 49
496,451.33
4,971.32
61,685.07
3,321,408.46
46, 865. -30
59, 005. 7S
43,447.46
239, 939. 25
27.50
479,849.05
1,180,858.95
520, 205. 60
70, 776. 51
528,608.27
3,333.33
31,270.00
85,004.15
226, 688. 50
16,232,586.10
801,369,481.08
CHARQES.
Administration and general expenses
Losses on sale of stock to employees
Special compensation fund on employees' preferred-stock
subscriptions
Bonus fund
Subsidiary companies' losses on export business, assumed
by United States Corporation
Deficit in operation of United States Steel Products Co.,
assumed
Reserve for guarantee fund for indebtedness due American
Bridge Co
Depreciation in value of securities owned
Interest on subsidiary companies' clearance account
Interest on loans
Interest on purchase-money obligations
Interest on bills payable
Interest on cash balances retained by trustees of sinking
fund
Interest guaranteed on Clairton Land Co. first-mortgage 4.
4 per cent gold bonds
Interest guaranteed and sinking fund on Union Steel Co.
first-mortgage collateral trust bonds
Interest on United States Steel Corporation 50- year 5 per
cent gold bonds
Interest on United States Steel Corporation 10, 60-year
6 per cent gold bonds
Provision for authorized appropriations and expenditures
for additional property and construction
Sinking fund on United States Steel Corporation 50-year
5 per cent gold bonds
Sinking fund on United States Steel Corporation 10, 60-
year 5 per cent gold bonds
Compensation paid account United States Steel Corpora-
tion 10, 60-year 6 per cent sinking fund gold bonds issued
under contract Apr. 1, 1902
Dividends on common stock
Dividends on preferred stock
Net profits.
«664,442. 18 , $1,382,113.14
39, 000. 00
11,379,374.99
134,669.43
15,199,362.60
773,3.33,33 ! 3,040,000.00
16,226,033.00
26,752,538.76
20,332,690.00
36, 720, 177. 50
55,795,722.25 75,847,912.57
5,676,831.60
55,793,722.25
81,624,744.17
$1,965,049.95
187,433.24
240,036.00
69, 188, 00
$1,385,719.49
296,257.60
403,568.60
2,30,000.00
750,000,00
603,360.00
2,093,986,83 ' 1,976,047.09
15,193,850,00 13,197,850.00
3,886,946,38 ; 8,320,442.75
3,040,000,00
757,500,00
3,040,000,00
1,010,000,00
$1,082,495,02
500, 204. 50
336,500,00
$1,077,444.01
146,825.38 j
i
628,413.25
622,812.00
143,647.98 ,
268,857.61 •
22,000.00
264,321.74
200,704.11
1,704,809,76 j
16,197,850,00' 15,197,850,00
i
8,500,000,00 I 8,500,000.00
7, 600. 000. 00 J 21, 500, 000, 00
3,040,000,00 3,040,000,00
1,010,000,00 1,010,000,00
6,800,000,00
12,707,662.50
30,404,173.41 i 25,219,077.00
79,017,657.53
20, 368, 5,53, 82
10,166,060,00
25,219,677.00 j 25,219,677.00
',205,915.04 64,625,941.87 87,664,097,49
2,249,094,46: 10,281,876,13
9,386,211,35 57,205,915,04 , 66,775,036,33 j 97,845,973,62
$1, 106, 196. 48
2,597.50
776, 359. OO
750,000,00
664,663,77
568,487.08
90,022,05
16,197,8,50.00
8,J50,000.00
20,500,000,00
3,040,000,00
1,010,000.00
$1,106,154.90 $1,133,379.49
669,532.36 '. 665,726.75
281,250.00 ; 418,837.00
$1,071,757,27
223,293,21
680,703.31
506, 250, 00
9, 298. 77
454,012,30
472,712.57
21,<,35, 72
18, 000. 00
24,000.00
101,961.08 38,225,84
309,669, 1« ! 1,047,809,65
15,197,850,00
10,000,000,00
15,197,830,00
10,000,000,00
3,040,000.00
1,010,000,00
10,166,050,00
25,219,677,00
10,166.050.00
25,219,677.00
87,831,802,88 : 67,959,622.47
1,968,378,74; 1,196,766.66
89,800,181,62 69,166,388.03
3,040,000.00
1,010,000,00
20,332,100,00
25,219,677,00
79,085,565,29
9, 299, 698, 71
88,385,264,00
245.250,44
258, 117, 52
29,032.99
24,000.00
4,971,32
41,330,66
1,999,500.00
15,197,850,00
10,000,000,00
3,040,000,00
1,010,000.00
23, 415, 125. 00
25,219,677,00
84.966,858,72
10, .527, 185, 95
96,494,044,87
311,974,
855,
4,564,
3,2,53,
16,
9,
750,
1,957,
2,336,
1.171,
22,
66
4.
181,
9.332,
148, 159,
67,957,
49,500,
29,133,
7,827.
751. 93
406. 83
542, 67
837, m
530. 62
298.77
000,00
186. 71
674. 84
916. 22
000.00
000.00
71.32
517, .53
412,51
537. 49
389, 13
000, l»
333, 33
300,00
6,800,000.00
124,511,660.50
269,414,628.66
7,39,801,096,1:
61,568,384,9"
801,369,481,08
31572— No. 53, pt. 1—12. (To follow page 3717.) No. 9.
UNITED STATES STEEL. COBPOBATION. 3719
The following are extracts from my reports to the committee of
July 18, August 2, and December 4, 1911, as far as such reports are
important to present a complete printed record of my proceedings :
[Telephone, 6510 John. Cable address "Seaforth." Finn of Farquhar J. MacEae, certified public
accoantante.]
68 William Street, New York,
July 18, 1911.
Hon. A. O. Stanley,
- Chairman United States Steel
Corporation Investigation Committee,
House of Representatives, Washington, D. C.
Dear Sir: Referring to the resolution of your committee tele-
graphed to me this day as follows :
Resolved, That the clerk of this committee be instructed to direct Mr. F. J. MacRae
to furnish at once to this committee copies of all requests for information or for docu-
ments of any sort containing iuf ormation he has been refused by the United States Steel
Corporation; also the original letters, memoranda or other documents in which the
United States Steel Corporation or its accredited representatives refused to fumiah
the information or documents requested,
I have the honor to report as f oUows :
Under the instructions of your committee, I have requested the
United States Steel Corporation or its accredited representatives to
furnish me with the following books, documents, or papers:
No. 1. Minutes of directors and of the finance committee, and
from time to time any documents that may be referred to therein.
The minutes of" the directors and finance committee were placed
at my disposal and I read the same, and under my direction certain
extracts and memoranda were copied therefrom and the same are
presented herewith for the information of the committee and are
marked: "Minutes of directors and minutes of finance committee,
as extracted"; and indexes of these minutes are also furnished.
It is the intention to make a further investigation of these minutes
in order to provide fuUer extracts as to matters considered important'
as it was not feasible to make a complete record covering the 10 years
history of the corporation within the first few days, when only a gen-
eral survey and indexes of subjects examined were prepared.
No. 2. Journal and ledger containing opening entries on the forrda-
tion of the United States Steel Corporation.
The journal and ledger containing the opening entries on the forma-
tion of the corporation were placed at my disposal.
Document No. 2 is a trial balance of the ledger of the corporation as
a holding company, showing the assets and the liabilities, the surplus
and the capitalization of that company on December 31, 1903, at
which time the balances were transferred to a new ledger. This state-
ment shows the number of shares of stock of the subsidiary companies
and the bonds of the Carnegie Co., which were deposited in trust with
the United States Trust Co., as trustee, and as against which were
issued the stock and bonds of the United States Steel Corporation, and
this statement also shows the shares of stock of subsidiary companies
owned by the corporation.
The book value carried on the books of the corporation of the shares
of stock of subsidiary companies (including the stock of the Shelby
Steel Co., and the Carnegie Co., bonds) amounted to the sum of
3720 UNITED STATES STEEL COBPOBATION.
$1,323,631,614.20 at the date of this statement, which was made up
in the following manner:
Common stock.
Original issue $1, 500. 00
Morgan Syndicate 506,274,300.00
Issued for Shelby Tube Co 2, 026, 700. 00
508, 302, 500. 00
Preferred stock.
Original issue 1, 500. 00
Morgan Syndicate 508, 443, 600. 00
Issued for Shelby Tube Co 1, 836, 000. 00
510, 281, 100. 00
Issue of 50-year, 5 per cent gold bonds 303, 917, 000. 00
Organization expenses charged to cost of stocks acquired 1, 041, 395. 24
Sundry cash payments, etc 89,618. 96
Total cost of all stocks and bonds of subsidiary companies,
deposited with the United States Trust Co., as trustee, or
owned, as shown by ledger of the United States Steel Cor-
poration, Dec. 31, 1903 1,323,631,614.20
No. 3. Copies of annual reports of United States Steel Corporation
since formation.
These reports were furnished to me and are now in my possession.
No. 4. Annual reports for each year for subsidiary companies.
In this connection it was stated to me that there were no reports of
the subsidiary companies printed, and I have not received any printed
reports of the subsidiary companies; but I stated to the auditor of
the corporation, Mr. Filbert, that in order for them to make up their
annual balance sheet as printed, it is necessary for them and the
auditors of the corporation, Messrs. Price, Waterhouse & Co., to have
such statements; and that I wanted to see the same and on the after-
noon of the 17th of Ju]y, 1911, Mr. Filbert brought to me, for my
^inspection, the working sheets O. K.'d by Messrs. Price, Waterhouse
*& Co., showing the assets and the liabilities of the separate subsidiary
companies of the United States Steel Corporation and various under-
lying companies. I then requested him to furnish me, in addition to
the last-mentioned statements, the trading and profit and loss accounts
of each of the several companies referred to above, showing the sales
and expenses and the surplus earnings which should be attached to
the balance sheets referred to above. I was asked what was my pur-
pose in requesting these documents; I answered that I desired the
documents for the information of the Stanley committee. I was then
asked if I intended to make copies of these documents. I said that
it was my purpose to make copies of the documents. Mr. Filbert
thought that in the absence of the counsel for the company, Mr.
Lindabmy and Mr. MacVeagh, that he did not know but that he was
exceeding his duties if he allowed me to go on along these hnes.
On the 18th of July, in the afternoon, Messrs. Mac veagh and Linda-
bury consented that I should make copies of these documents. These
documents are very volumindus. * * *
I asked Messrs. MacVeagh and Lindabury, if, in order to shorten
the work, to save expense to the Government, and to save my time
and save themselves trouble they woidd allow me to have the docu-
UNITED STATES STEEL COEPORA.TION. 3721
ments photographed, and that they might select their own photog-
rapher and send the bill to me, and have the plates destroyed after
one copy had been made. Mr. MacVeagh did not hke the idea of
having the documents photographed, and I then stated that, with
the consent of your committee, I would have these documents copied.
The documents contained important information regarding the sub-
sidiary companies, which can not be obtained from -the published
annual reports of the corporation nor from any report of the Bureau
of Corporations.
No. 5. List of investments, including stocks of subsidiary com-
panies, as at the last balance sheet December 31, 1910.
This information is being compiled by the auditing department of
the United States Steel Corporation, but has not yet been received
by me.
(A) Copy of contract with J. P. Morgan & Co., referred to at direc-
tors' meeting March 1, 1901.
This document was handed to me and is attached hereto and
marked "Document No. 1."
(B) Copy of contract with J. P. Morgan & Co. referred to at
directors' meeting of April 1, 1909.
This document has been handed to me and is attached hereto and
marked "Document No. 2."
(C) Copy of report of special committee on Norfolk & Western Coal
& Coke Co., and Pocahontas Coal & Coke Co., submitted by Mr.
Widener at the seventeenth meeting of the directors January 7, 1902.
The original document on file in the office of the company was
exhibited to me, but no copy was furnished, l^a copy is desired,
the same will be obtained. * * *
(D) Contract with J. P. Morgan & Co. relating to conversion of
preferred stock into bonds, at the nineteenth meeting of the directors
and again referred to in report of the finance committee meeting of
April 1, 1902.
A copy of this document was delivered to me and is attached hereto
and marked "Document No. 4."
In this connection I wish to state that the books of the Umted
States Steel Corporation show that the commission charged for this
transaction was $6,800,000.
(E) Statement embodying certain statistics relating to niimng,
manufacturing, and transportation of the subsidiary companies for
the year ending March 31, 1902.
A copy of this document was delivered to me and is hereto annexed
and marked "Document No. 5." . ^- , .,,
(F) Report of the presiding officer at the mneteenth meeting ot the
directors October 7, 1902. , . , , . • t, ^ ^
A copy of this document was subnutted to me and certam abstracts
therefrom were made, omitting certain figures relating to costs. (See
document No. 6.) , .„. , ^ i ^^ i. xi. i- „
(G) Agreement with the Pittsburg Coal Co. by the executive com-
mittee, dated AprU 20, 1905. , . , , , ,q ,
A copy of this document was furnished to me. (See document
^(H) Contract referring to Clairton deal referred to at directors'
meeting October 3, 1905.
8722 UNITED STATES STEEL OOEPOHATION.
The document marked "No. 8" was furnished in response to this
request, but it is not the document desired; the one wanted being
referred to in subsequent meetings, and it was finally produced to Mr.
Stanley at the office of the United States Steel Corporation.
(I) Contract dated January 2, 1907, between Wenona Iron Co.,
HjU, et al., and Great Northern Iron Co.
This is the €0-calIed HiU ore lease. It is a large printed volume.
The corporation reported that they had only the signed original copy,
which will be produced to the committee for inspection when wanted.
(See corporation's typewritten statement hereto annexed.)
(J) Contract of April 1, 1901, with J. P. Morgan & Co., regarding
acquisition of American Bridge Co., Lake Superior Consolidated Iron
Mines, Bessemer Steamship Co., Oliver Iron Mining Co., and Pittsburg
Steamship Co.
This is said by the United States Steel Corporation to be a dupli-
cation of the document No. 2, furnished in response to request
marked "(B)."
(K) Contract with Union-Sharon Co. December, 1902.
This document was furnished me and is hereto attached, marked
"Document K." ,
(L) Minutes of the executive committee. /
These minutes were requested by me, and I am informed by Mr.
Stanley they were not in evidence before the committee at Wash-
ington.
The record of these minutes consists of one book only and ends
with the meeting of June 9, 1903. An abstract taken from these
minutes is subnaij^d herewith and marked "Minutes of executive
committee as extracted."
(M) Compensation of J. P. Morgan & Co. as to original promotion
and acquiring original subsidiary companies.
The amount of profit or compensation of the firm of J. P. Morgan
& Co. or the syndicate interested in the promotion of the United
States Steel Corporation can. not be obtained from the books of the
United States Steel Corporation. It is nowhere therein stated. The
exact figures could only be obtained either from J. P. Morgan & Co.
or the syndicate interested in the formation of the Steel Corporation.
But in document (P) there is a reference to it, and from the informa-
tion obtained therefrom and from the officers of the corporation it
would appear that the compensation or profit, so far as known, was,
roundly, $130,000,000, half in preferred stock of the United States
Steel Corporation and half in common stock of the United States
Steel Corporation
Assurmng that the value of the preferred stock was par, we would
get $65,000,000, and assuming that the average price of the common
stock was, say, 40, we would have $26,000,000, making in all
$91,000,000.
Deducting from this amount the sum contributed to the United
States Steel Corporation as cash surplus, viz, $25,000,000, and also
the sum, stated to be $3,000,000, which was paid for the necessary
expense of the formation of the United States Steel Corporation, we
would have $91,000,000 less $28,000,000, with $63,000,000 remaining
as the compensation of J. P. Morgan & Co.
Document P, subsequently referred to, states that there remained a
sum of money, which, together with the unsold balance of such
UNITED STATES STEEL COBPOKATION. 3723
remainder of preferred stock and common stock, will amount approxi-
mately to $56,000,000, and will constitute a profit realized by the syn-
dicate and subject to distribution among the syndicate managers and
the syndicate subscribers.
(N) Letter from Mr. J. A. Farrell, export sales agent of the Ameri-
can Steel & Wire Co., to Mr. Corey, dated July 27, 1903, referred to at
finance committee meeting July 28, 1903, referring to export bureau
or foreign sales department.
It was reported to me that a search was being made for this letter,
but up to this date the corporation has been unable to find it.
(O) Letter from President Lynch to President Corey October 20,
1903, in reference to Pocahontas coke matter.
I read this letter, which is an oriOTnal document and relates to coke
ovens and the Pocahontas field. I will furnish a copy of it if it is
desired.
(P) Contract of March 1, 1902, with J. P. Morgan & Co., regarding
compensation for acquiring stock of subsidiary companies.
A copy of this document was furnised to me, and is hereto attached,
marked "Document P," and it is also referred to above under
heading (M).
(Q) Letter from President Lynch referred to in the minutes of the
finance comnaittee November 22, 1904, in reference to shortage of coke
and recommending purchases of 100,000 tons of Pocahontas coke.
It was reported to me that a search was being made for. this letter,
but up to this date the corporation has been unable to find same.
(R) Eeports made by president from time" to time to the finance
committee with reference to the export department, foreign sales, etc.
Note. — With respect to document R, Mr. MacRae asked for prices at which sold,
and Mr. Filbert stated he had agreed to furnish the committee with figures which he
believed would answer the purpose and be much more satisfactory than to pick out
prices for the bookings for one week.
In relation to this request, see document R.
In this connection, Mr. Stanley requested the price c. i. f. at des-
tination. Is was stated that this would be furmshed.
, (S) Letter from J. A. Farrell in reference to importation of iron
and steel referred to in the minutes of finance committee April 11,
1905, referring to the subject of importations of iron and steel in
1902 and 1903, and suggesting a plan by which the company might
keep in touch with future sales of imported iron and steel in this
country.
It was reported to me that a search was being made for this letter,
but the corporation has been unable to find the same.
(T) List of plants and properties acquired by the United States
Steel Corporation or its subsidiaiy or constituent companies on its
incorporation or by purchase smce, which have been sold, dis-
mantled, or otherwise disposed of.
This list is being prepared by the auditing department, but has
not yet been furnised.
(U) List of investments held by subsidiary or constituent com-
panies as shown by last balance sheet.
I am informed that the auditing department is preparing this list,
but it has not yet furnished the same to me.
(V) Schedule of profits of the principal products of the organiza-
tion at present prices, submitted at the meeting of the finance com-
mittee April 27, 1909.
3724 UNITED STATES STEEL COEPOEATION.
I have not received this document, and it is withheld for the time
being. Mr. Stanley and Messrs. lindabury and MacVeagh had a dis-
cussion in relation to this and other documents requested by me into
which the question of costs and profits entered.
(W) Report of comptroller showing additional blast furnaces
acquired by purchase annually since organization and submitted by
the secretary at meeting of October 5, 1909.
This document was submitted, and is hereto annexed and marked
' 'Document W."
(X) Letter of President Farreh dated April 5, 1909, in reference to
plant in Canada for manufacturing the corporation's products.
See memorandum marked "X."
This document was withheld temporarily, but Mr. Stanley saw it
while in New York, and took copies therefrom.
(Y) Letter to Mr. Kerr from President McGonagle, of the Duluth,
Mssabe & Northern Railway Co., dated December 22, 1909, in refer-
ence to ore shipment from Cuyuna Range referred to at finance com-
mittee meeting December 28, 1909.
This document was furnished to me, and is hereto annexed marked
"Document Y."
(Z) Letter of Mr. Kerr to the president dated December 14, 1909,
in reference to Michigan Iron & Land Co. lands referred to at finance
committee meeting December 28, 1909.
This document was furnished to me, and is hereto annexed and
marked "Document Z."
(AA) Contract between American Steel & Wire Co. and the Monon-
gahela River Coal & Coke Co., referrred to at finance committee
meeting March 13, 1910.
There was only one original copy of this contract on fUe, which will
be furnished to the committee if requested. I believe that Mr.
Stanley saw this original.
(BB) Opinion of Messrs. MacVeagh, Reed, Severance, KeUogg,
and Knapp, relating to terminal allowances.
This document was not furnished, and the request was referred to
Messrs. Lindabury and MacVeagh to pass upon. I beheve that they
claim it was a privileged communication between attorney and client.
Mr. Stanley had. a conversation with Mr. Lindabury in regard to this
matter.
(CC) Any reports of or concerning the Tennessee Coal, Iron &
Railroad Co., showing amount of coal, iron, manganese, timber, and
other minerals or materials in sight.
I am informed that the auditing department is preparing this infor-
mation, but has not yet furnished it to me.
(DD) Amount of stock of Tennessee Coal, Iron & Railroad Co.
owned by the United States Steel Corporation or held in trust for
them pnor to the absorption of the Tennessee Coal, Iron & Rail-
road Co.
The answer to this inquiry, made by the United States Steel Cor-
g oration, is "None." (See typewritten memorandum marked "DD.")
■ut see Chairman Gary's testimony before the Stanley committee,
page 127, concerning loan made by United States Steel Corporation
with Tennessee Coal, Iron & Railroad Co.'s stock as collateral.
On October 23, 1907, according to the minutes of the finance com-
mittee, it was unanimously voted that an exchange of $1,200,000
UNITED STATES STEEL COEPOEATION. 3725
par value ten-sixty 5 per cent gold bonds of the United States Steel
Corporation be made for 20,000 shares, $2,000,000 par value, Tennessee
Coal, Iron & Railroad Co., as outhned in the agreement submitted.
There was evidently no entry made of this transaction upon the
financial books of the company.
A copy of the agreement last mentioned has been asked for and has
not yet been received, and is referred to later under the heading
(EE) Recommendation of Judge Gary and special committee as
to sale of semifinished products at finance committee April 5, 1904,
requested reports, letters, or any other data referring to this matter.
This was a noncompetitive recommendation.
The corporation replied to this request as follows :
So far as we know there are no data or papers or information on file relating to this
matter beyond that contained in the minutes of the finance committee meeting. See
typewritten memorandum (EE).
(FF) What arrangement, if any, was made by Messrs. Gary and
Corey with foreign producers with regard to the price of rails to be
sold in neutral markets as shown in finance committee minutes
November 1, 1904?
The corporation rephed to this request as follows :
The answer is none so far as our records show or as I know. W. J. F.
(GG) Wabash Union Railroad Co. contract referred to at finance
committee meeting December 6, 1904.
A copy of this contract was furnished marked "GG" with a note
that the contract was made before the United States Steel Corpora-
tion was organized.
(HH) Contract between Carnegie Steel Co. and Pittsburg Steel Co.
for supply of billets referred to at finance committee meeting April 11,
1905.
This document has not yet been furnished me.
(II) Contract between American Sheet & Tin Plate Co. and the
American Can Co. referred to at finance committee meeting April 11,
1905.
It was reported to me that a search was being made for this docu-
ment, but it has not yet been dehvered to me.
(JJ) President's reports of plants and operations.
A sample document was furnished and marked "JJ."
(KK) Letter of James M. Swank referred to at finance committee
meeting January 17, 1911.
This letter was submitted to Mr. Stanley. _
(LL) Proposition and proposed arrangement between United
States Steel Corporation and Crucible Steel Co. referred to in finance
committee minutes March 19, 1903. The corporation replied to
this request as follows :
So far as we know or are able to ascertain, there was no written proposition covering
the negotiations referred to. No arrangement or agreement was ever consunimated
on the basis of the proposition then being negotiated for, as referred to in the minutes.
(See typewritten memorandum marked "LL.") , • at v i
Note —This is a sliding-scale agreement, and Mr. Stanley, when m New York,
discussed this matter with the United States Steel Corporation attorneys and officials.
In this connection, I have requested the steel company to furnish me from the sales
records of the Clairton Steel Co. the statement of the sales to the Orucible Steel Co.
and outsiders, showing the difference in pnce of matenals sold to the Crucible Steel
Co and others I have not yet received this statement, which is referred to in the
3726 UNITED STATES STEEL COEPOEATION.
minutes of tte finance committee of March 19, 1903, in part as followe: "That accom-
Sanying the proposition is a proposed arrangement tetween this companjj and the
rucible Steel Co. for the total requirements of iron and steel for the Curcible Steel
Co. when and as the United States Steel Corporation is in a position to furnish the
same." (See typewritten memorandum marked "LL.")
(MM) Dividends declared by the subsidiary or constituent com-
panies of the United States Steel Corporation since incorporation of
the last-named company.
I took this data from the books of the company, and it is shown in
statements submitted herewith marked "MM," which are abstracts
of the profit and loss account of the United States Steel Corporation,
which practically exhibits the income of the corporation since its
formation and down to December 31, 1910, and all its expenses and
other charges as a holding company.
(NN) Agreement between Pocahontas Coal & Coke Co. and the
Norfolk & Western KaUroad Co., referred to in the minutes of January
3, 1902, of the finance committee.
This is a voluminous printed document, and the corporation has a
filing copy only, which was shown to Mr. Stanley.
(00) Letter of July 27, 1903, to Mr. Corey from J. A. Farrell,
referred to at finance committee meeting July 28, 1903, in reference
to export bureau or foreign sales department.
This letter has not been found up to this date, but I am informed
that a search is being made for it.
(PP) Eeferring to the printed report of the United States Steel
Corporation of December 31, 1910, the gross sales as stated are
$703,961,424.
I requested them to analyze this amount and furnish me with a
statement showing how much of these sales were sold to customers
outside of the United States Steel Corporation organization, as the
sales so stated of $703,961,424 included sales between subsidiary
companies of the United States Steel Corporation and was misleading
in calculating the percentage of profit of turning over the goods soltf
This document is furnished and submitted herewith and marked
(QQ) Marketable securities bought and sold by the United States
Steel Corporation. Large quantities of preferred and common stock,
bonds, and other securities included in the general ledger under this
heading.
I have prepared a statement from the books of the corporation,
showing these transactions marked "QQ," submitted herewith.
The corporation makes the statement that practically aU the
common and preferred stock was for account of the employees'
stock subscription. A copy of the employees' stock subscription
agreement is submitted in connection with this schedule and marked
"WW."
(RR) Surplus stated in the report of the United States Steel Cor-
poration December 31, 1910, amounts ia round numbers to about
$164,000,000. The surplus on the books of the United States Steel
Corporation, as a holding company, amounts at this date to about
$45,000,000. It is impossible from the books of the United States
Steel Corporation to reconcile the difference between these two
amounts, it being necessary to have the reports of the subsidiary
companies which would be covered in the documents referred to in
request No. 4.
UNITED STATES STEEL COEPOBATION. 3727
(SS) Referred to under request marked "LL." I requested them
to rurnish me a memorandum showing the difference in prices charged
by the Clairton Co. to the Crucible Steel Co. and to outsiders. Sales ,
agreement furnished and marked "SS." I am informed that they
are preparmg a further statement.
(TT) Duplicate request regarding 12,000,000 transaction in Ten-
nessee Coal, Iron & Railroad Co. stock referred to above.
(UU) Request for comparative statement of cost per ton to pro-
duce pig iron and steel raiTs, 98 to 100 pounds per yard. Cost sheets
for the past three years are being compiled at my request which will
show this and also as to other products.
(W) What, if any, dividends have been paid by Tennessee Coal,
Iron & Railroad Co. since its acquisition by the corporation ?
Mr. Filbert stated orally as follows:
That $124,000 (round figures) of preferred stock, 8 per cent cumulative held by
outsiders, the dividends on which are paid quarterly. That no dividends are received
by the United States Steel Corporation as a holding company upon this stock.
(WW) Copy of employees' stock subscription agreement, 1911, was
requested and furnished with the document marked "QQ." See
document marked "WW."
(ZZ) I requested to see the cablegram from J. P. Morgan in regard
to the wage question, which was read April 27, 1909.
It was stated that this cablegram must be read in coimection with
some other cablegram which they state was sent by Mr. Gary.
A copy of this cablegram and the cablegram signed by Mr. Gary
will be submitted herewith, but it will be noticed that the copy of
Mr. Morgan's cablegram bears no date, and it is stated that it is
merely a copy of a cipher cablegram which was delivered to J. P.
Morgan & Co., and copied and then transmitted to the corporation.
In coimection with the abstract of the minutes of the directors
and finance committee, special attention is directed to the fact that
the laws of the State of New Jersey were evidently changed prior to
the issue of the ten-sixty 5 per cent gold bonds of the corporation,
issued in exchange for the preferred 7 per cent stock. Special atten-
tion is also called to the reference in the minutes in regard to taxa-
tion in Pennsylvania, and the action of the corporation in regard to it.
The purpose of showing the presence of Mr. Morgan, or the various
members of his firm, George W. Perkins, Charles Steele, Robert
Bacon, and also J. P. Morgan, jr., at the meetings of the directors
and finance and executive committees was to indicate the dominat-
ing influence of J. P. Morgan & Co. in the control and management
of the corporation. As bearing upon this subject, it appears that
Mr. Mgrgan was consulted by cable in reference to the schedule of
wages in April, 1909, and it also appears by the minutes of the execu-
tive committee of July 2, 1901, that the president of the corporation
stated :
He thinks that Mr. Morgan, the responsible head of the financial house that had
the responsibility of bringing out this concern, should have the opportunity of being
consulted as a member of the board of directors or otherwise. The chairman dislikes
to have anything done that will get ua into trouble, and particularly at this time.
I have previously stated that it was my intention, with the consent
of the committee, to make a more exhaustive search of the minutes
of the corporation as a holding company and also the minutes of the
various subsidiary companies, which will probably result in producing
3728 UNITED STATES STEEL COBPOKATION.
information of sufficient value to warrant the time spent. This
opinion seems justified in view of the present inability of the corpo-
ration representatives to find the various letters and recommendations
of Mr. J. A. FarreU relating to export sales and other subjects.
In reference to the cost of production of pig iron and steel rails
and other products of the corporation, I stated to Mr. Filbert, the
comptroller of the corporation, and to Mr. Winslow, who was always
present as a representative of the corporation during my examinations,
that with their elaborate organization, the completeness of their
bookkeeping system, and their ability to engage the ablest talent in
the land, that they probably had the finest and most complete system
of factory cost accounts, which would show a comparative statement
year by year of the cost of the various products of their organization
m detail, to wit: Eaw material, factory labor, factory overhead
charges, including the maintenance, heat, light, power, etc., and I
asked Mr. Winslow where these records were kept. He replied that
it was some years since he had anything to do with the cost depart-
ment and he did not know where I could have access to these records.
When I submitted to Mr. Winslow the telegram received the other
day from your committee, which said in part, "You may show this
to Winslow or other representative of the corporation" (Mr. Filbert,
the comptroller, being then present) , a statement was made that the
most complete set of such records as I have referred to above would
be furnished from the ofiice at No. 71 Broadway, in the city of New
York, and I then asked them to prepare for me a statement covering
the principal products of the corporation, including pig iron, steel
rails, etc., for the past three years, showing the comparative factory
cost.
Minutes show that the plan for the conversion of the 7 per cent
accumulated preferred stock into the ten-sixty 5per cent gold bonds
was first suggested and outlined by Mr. George W. Perkins.
In conclusion, I would say that a large quantity of material has
been uncovered which must be analyzed and adapted to the purposes
and the time at the disposal of your committee.
Yours, very respectfully,
F. J. MacRae,
Certified Public Accountant, State of New York.
EXTRACTS FROM REPORT MADE TO THE COMMITTEE AUGUST 2, 1911.
In regard to the demand upon the subsidiary companies of the
United States Steel Corporation in Pittsburgh for their books and
papers, in accordance with the authority vested in me under the reso-
lutions adopted by the committee, I have the honor to report that
on July 24, 1911:
(1)1 called on President Schiller, of the National Tube Co., who was
also an official of the Shelby Tube Co., presented my credentials, and
made the demand on him. He stated that he personally had no objec-
tion, but would have to communicate with New York, and that he
would inform me of the instructions received from there over the long-
distance telephone at 11.45 this morning (Aug. 2).
(2) I then called on the American Bridge Co., and the ofiicial in
charge, Mr. — Thompson, informed me that the financial books of the
UNITED STATES STEEL COEPOEATION. 3729
company were in Pittsburgh and that the minutes of the company
were in New York; but that he would not allow me access to any of
wiem without first communicating with his superior officers in 'New
(3) I then called on Mr. Wheeler, treasurer of the American Sheet
& Im Plate Co., and he stated that he would like time to get instruc-
taons from New York. I then requested Mm to write me at the Fort
ritt Hotel what his decision would be after hearing from New York.
(4) I then called on President Dinkey, of the Carnegie Steel Co.,
presented my credentials, and made the request for books and docu-
ments, and he also stated that he would prefer to consult with New
York, and I agreed to wait until he received an answer and call on him
again in the afternoon for his decision.
(5) I then called on Mr. McCauseland, treasurer of the Union Steel
Co., and he informed me that the financial books of the company were
m Pittsburgh, but that the minutes were in the posesssion of the sec-
retary, in New York.
*******
In accordance with the above, I later called up ^Ir. Wheeler, treas-
urer of the American Sheet & Tin Plate Co., President Schiller, of the
National Tube Co., and called on President Dinkey, of the Carnegie
Steel Co., and received, in effect, the same answer from all three — •
which was a request that I wait until to-morrow, until after the meet-
ing of the directors of the United States Steel Corporation c'Oii^d be
held, when they would receive definite instructions from the counsel
of the corporation, Mr. Lindabury, and that they would then give me
a definite answer. I immediately telegraphed you to this effect, as
follows :
Credentials presented, demand made. Officials of the various subsidiary com-
panies request time until to-morrow to consult with counsel or receive instructions
from New York. Letter follows.
Late in the afternoon of the 26th of July, I was informed by Mr.
Dinkey, of the Carnegie Steel Co., that I could have access to the
minutes of his corporation, and I immediately availed myself of the
¥rivilege, as also to examine the minutes of the American Sheet &
in Plate Co., National Tube Co., and Clairton Steel Co.
In the Carnegie Steel Co. such minutes as referred to meetings
prior to April 1, 1901, were taken from the binder, and in the case of
the American Sheet & Tin Plate Co. the minute books prior to that
date were sealed. In which instance I made request to see these
minutes prior to the organization of the United States Steel Corpor
ration for the purpose of making a logical inquiry as to the conditions
existing and leading up to the formation of the corporation. In
which instance Mr. Dinkey, of the Carnegie Co., and Mr. Wheeler,
of the American Sheet & Tin Plate Co., requested time to consult their
superior officers or counsel.
I stated to Mr. Wheeler that I found no reference in the riiinutes of
of the American Sheet & Tin Plate Co. to the acquisition by his com-
pany of the Morgantown Iron Works Co., of Morgantown, W. Va.,
and asked him for any papers or documents bearing upon this mat-
ter. He said he had none except a bid for the property. I then
stated to him that I found no reference in the minutes of his com-
31572— No. 53, pt. 1—12 9
3730 UNITED STATES STEEL. COKPOKATION.
pany to the contracts of his company with the American Can Co.,
which I knew existed, for the reason that they were referred to in
the minutes of the United States Steel Corporation in New York,
and I requested him to show me all such selling contracts of his com-
pany with the American Can Co. He rephed that he could not com-
ply with my request or demand without first consulting with counsel
and the United States Steel Corporation officials. Tms was in the
presence of Mr. Ireland, one of my assistants.
Under your direction I left Pittsburgh and came to New York,
leaving two of my assistants, namely, Mr. Anthony J. Ernest and
Mr. Robert Duncan Ireland, to complete the examination of the
minutes.
On the 31st of July I received a letter from Mr. Ernest to the fol-
lowing effect :
I find that the charter of the Carnegie Steel Co. provides for an executive committee
to. exercise certain powers. Shall I demand minutes of same, if any?
To which I replied by telegram :
Demand all minutes that may be referred to and any other books and documents
that you deem necessary for the examination.
I directed Mr. Ireland to go to the American Sheet & Tin Plate Co.
and examine the minutes and get copies of the agreements between
the American Sheet & Tin Plate Co. and the American Can Co. Mr.
Wheeler refused to furnish agreements at this time, stating he did
so on the advice of his counsel and on the further ground that they
should not be given —
except under an arrangement whereby they would be used only as confidential infor-
■mation for the committee.
which quotation he read from a telegram he held in his hands.
New York, December 4., 1911.
Hon. Augustus O. Stanley,
Chairman Special Committee on Investigation of
United States Steel Corporation, Washington, D. C.
: Dear Sir : Since submitting my last written report to you under
the date of August 2, 1911, 1 desire to report further, for the informa-
tion of the committee, as follows :
At your request I attended the hearings of the committee in the
municipal chamber in the New York CityHall on August 3, 4, and 5;
and, under your instructions, I went to Washington on August 7 and
attended the hearings there on August 8, 9, 10, 11, and 12.
M On Monday, August 14, as directed by you, I called on Mr. Herbert
Knox Smith, Commissioner of Corporations, to obtain from him
certain accounts and other data in his office, which, under the consent
given to the committee by the President, was to be placed at the
disposal of the committee; and on that day I handed you a written
report of my request and Mr. Smith's reply thereto, as follows:
On the 14th day of August, 1911, Mr. MacRae called on the Commissioner of Cor-
■porationBi Mr. Herbert Knox Smith, accompanied by Miss Minnie Mahler, and
requested Mr. Smith to furnish him (Mr. MacKae) with a copy of his (Mr. Smith's)
recmests upon the Steel Corporation for books, docmnents, or information by the end
of the week.
Mt. MalcRae also requested Mr. Smith to furnish him with the trading and profit-
and-ioss accounts of the various subsidiary companies of the United States Steel
UNITED STATES STEEL COEPOEATION. 3731
Coiporation, which he understood had been submitted to him by the United States
Steel Corporation. Mr. Smith said that such information as he had in his possession
respecting this matter was only fragmentary possession
Mr._ MacRae requested Mr. Smith to furnish him with the production cost of the
ETSts^nectT l^l^^Steel Corporation Mr. Smith said tLt the data furnished
m this respect by the Steel Corporation had been returned to it and he onlv had
copies in his possession and that his figures in this regard when pubhshed would be
composite costs of the steel company and other independent companies amalgamated
with statistics or data compiled from the Iron Age and other trade journals I under-
stood him to say tha,t it would be several months before this information would be
pubhshed and available. "uu±u uu
On August 15 to 23, inclusive, I attended at the office of the cor-
poration in New York and directed the compilation of the accounts
and the exa,mmation of the minutes of the subsidiary companies
and I was also in Washington in conference with you regardiiig the
subjects then under investigation and the evidence sought to be pro-
cured from the Commissioner of Corporations, and f agam called
upon the said commissioner and handed you the following memo-
randum as the result of my visit :
The requests made on the United States Steel Corporation by the Bureau of Cor-
porations comprise seven books, or about 700 pages. The requests principally relate
to mill-cost sheets of the various products in minute detail, profit-and-loss statements
and "orders " and "bookings " of sales for the various companies, all of which have beea
returned in accordance with the agreement, and receipts signed by the commissioner
or his assistants, a copy of which receipt is as follows:
Received of United States Steel Corporation schedule and statistical statements
covering the operations of Co. properties for the year , as enumerated in
schedules annexed hereto. »
The schedules and statistical statements above referred to are received on
the understanding that they are merely loaned to me for my inspection and con-
sideration, that I will not make literal copies thereof for the files of any department
of the United States Government, and that said schedules and statements will be
returned to the United States Steel Corporation as soon as I have completed inspection
of same, and in any event prior to . ' '
Under _my direction a copy of the requests made by the Bureau of
Corporations on the United States Steel Corporation was made, and
is now in your possession.
From August 24 to the present time I have attended at the office
of the corporation in New York (except on September 12 to 15, Sep-
tember 23 to 26, and November 9 to 10, when I was in Washington
in consultation with you) in the preparation of the accounts ana the
examination of the minute books of the various companies and inves-
tigation of other matters in the interests of the committee.
Many delays of one, two, or three days at a time occurred in fur-
nishing the minute books of the subsidiary companies for the reason,
as stated by Mr. Boiling, that he or some other representative of the
company has to read all books before permitting me to examine them,
and had to get the consent of the former officials or directors of the
subsidiary companies before permitting me to examine them. And
on or about the 14th of October I expressed to Mr. BoUing my dissat-
isfaction with the progress I was making in the examination of the
minutes of the various subsidiary companies, owing to the slowness
in delivering the said minutes, and the delays between the time of
finishing the reading of one set of minutes and the production of
another set. I stated that I would take Mr. Ernest from the work of
reading the minutes and detail him to some other duties until such
time as Mr. Boiling could have sufficient sets of minutes ready for
3732 UNITED STATES STEEL COBPOKATION.
inspection to allow the examination to be taken up and proceed with
some degree of rapidity.
On October 30 I informed Mr. Boiling that I was ready to have Mr.
Ernest proceed with the reading of the minutes, and on October 31
Mr. Boiling informed me, through Mr. Winslow, that owing to the
press of business due to the Government against the Steel Corpora-
tion, and in the absence of Mr. MacVeagh, that he had been unable
to read any of the minutes, and he requested a further delay until he
could be at liberty to do so.
On November 8 I received the following letter from the United
States Steel Corporation, signed by their attorney, Mr. Raynal C.
Boiling:
November 8, 1911. '
Dear Sir: Before asking that we furnish you further data, such as minutes and
other records, might it not be well for you to ascertain what are the views of Mr.
Stanley with respect to the propriety of a request for this data, now that the United
States Steel Corporation and its subsidiary companies, as well as a number of indi-
viduals connected with the corporation, ha^e been made defendants in an action
brought by the Government? May not Mr. Stanley feel that, with proper respect
for the courts and regard for the rights of defendants therein, evidence ought not to
be requested by an investigating committee from defendants during the progress of
court proceedings?
Very truly, yours, Raynal C. Bolling.
Mr. F. J. MacRae,
68 William Street, New York City.
In response to a telephonic communication from you I went to
Washington on November 9 to consult with you, and on November
10 the following letter was addressed by you to Mr. Raynal C. Boiling-;
November 10, 1911.
Mr. Raynal C. Rolling,
Assistant General Solicitor, United States Steel Corporation,
71 Broadway, New York City.
Dear Sir: Your favor of November 8, addressed to Mr. F. J. MacRae, has just
been brought to my attention, in which you suggest that Mr. MacRae ascertain my
views in respect to the propriety of his request fur certain data necessary to complete
the investigation of the books of the Steel Corporation as authorized by the com-
mittee. Mr. MacRae's duties with this committee are in no way affected by the
action brought by the Department of Justice.
I am of the opinion that neither the Department of Justice nor any member of
this committee regard Mr. MacRae's requests as in any way evidencing a lack of
respect for the courts or regard for the rights of defendants therein.
1 sincerely hope .that upon receipt of this communication Mr. MacRae will not be
further delayed m his endeavor to complete this examination.
Yours, very truly,
A. 0. Stanley.
On November 17 Mr. Bolling informed me that he would turn over
for my inspection the minutes of the Oliver Iron Mining Co., and would
furnish such other minutes as have been asked for in due course of
time after they had been read by some representative of the Steel
Corporation.
On November 29, upon receipt of a telephonic communication from
you, I went to the office of the corporation and saw Mr. Winslow, and
made the same request that I have made every day for the past sev-
eral weeks, to wit, that he see Mr. Filbert and get for me the explana-
tion of certain adjustments in the making up of the annual reports of
the United States Steel Corporation, which it is necessary for me to
have in order to complete my figures. I also stated that I have
received a request from you to furnish the data regarding the cost of
UNITED STATES STEEL COEPOBATION. 3733
production of principal products of the corporation and also the
minutes of such companies as have not already been supphed. Mr.
Winslow, on behalf of the United States Steel Corporation, rephed
that Mr. Gary, Mr. Filbert, and Mr. Boiling were in Washington, and
that Mr. Boiling had stated to him yesterday afternoon that on
account of the time taken in complying with the demands of the
Senate investigating committee ana the work in connection with the
Government suit that nothing could be done in comphance with the
demands of the committee through me at that time.
Eequests for data made by Mr. MacRae and disposition of the same
by the corporation.
As directed by you, I made a copy of the voucher for $10,000
referred to in the examination of Mr. George W. Perkins, which was
furnished to me as f oUows :
Philadelphia, Pa., September 19, 1904-
United States Steel Corporation.
My Dear Sirs: I inclose herewith the Republican national committee's receipt
for your subscription to the campaign fund.
Respectfully, yours, E. T. Stotesbury,
Chairman.
[Inolosure.]
, Republican National Committee,
Madison Square, New York, September 17, 1904.
Received from United States Steel $10,000.
C. H. Duel,
Assistant Treasurer.
(Press of 40 Nassau Street.)
Note.— E. T. Stotesbury is a member of the firm of J. P. Morgan & Co.
2. I was furnished with document marked "Exhibit U," which is a
statement of the companies whose stocks are owned by the United
States Steel Corporation, together' with the capital stock of those com-
panies and their capital indebtedness.
3. I was furnished with Exhibit T, which is a hst of plants and
properties acquired by the United States Steel Corporation or its sub-
sidiary companies on its incorporation or by purchase since, which
have been sold, dismantled, or otherwise disposed of.
4. I have requested a statement of the cost of production of the
principal products of the company, which has been promised but has
not yet been furnished.
5. I have requested the annual reports of the subsidiary compames.
These annual reports would show the assets and liabUities and the
profit and loss accounts. The corporation furnished me the balance
sheets showing the assets and habihties of the various companies as of
December 31, 1910, but they demurred to furnishing the trading and
profit and loss statements of these companies for nine years and nine
months, in accordance with my request set forth m my report to the
committee July 18, 1911, unless I signed a receipt similar to that
signed by Mr. Smith, which is referred to above. • , j
There was considerable delay and discussion with the officials and
attorneys of the United States Steel Corporation, which I duly
reported to you in person and by letter and telegraph, and thereafter,
on August 25, 1911, you instructed me by telegraph as follows:
Am surprised and exceedingly regret that any restrictions are placed upon profit and
loss sheeti of subsidiary companies; suggest you examirie these papers under terms and
conditions named in Mr. Boiling's letter of the 24th instant, with distenct under-
standing that committee is not in any manner whatsoever precluded, even by inference
3734 UNITED STATES STEEL COEPORATION.
from issuing such process as its chairman may deem proper for the production of these
papers when the committee resumes its sittings,
A. O. Stanley.
On August 28 Mr. Boiling agreed to give me the trading and profit
and loss statements upon condition that I sign the receipt copied
below, which, in accordance with the directions in your telegram
above, I signed, as follows:
Received of United States Steel Corporation profits and loss statements of the sub-
sidiary companies of the United States Steel Corporation for the year 19 — , as follows:
» « *
These statements are received upon the condition that they are merely submitted
to me for inspection, and I will not make literal copies thereof for any piirpose whatever,
and I will not, either in my report or in any otiier manner, make public the record
given in said statement with respect to the gross or net profits or other details of any
particular company; but it is also understood that their acceptance upon these con-
ditions is not to be deemed in any way a waiver of any right to obtain them by sub-
poena which the committee may have.
From that date until the present date I have been using my best
endeavors to compile these figures for the information of the com-
mittee.
I have two assistants worldng on these accounts and I expect that
these figures will be comi)leted within the next 30 days, if I am fur-
nished by the corporation with the explanation of tne adjustments
made by the corporation in preparing their annual reports.
6. I have been furnished with the minutes of the following com-
panies, which have been read, and extracts have been made for the
use of the committee:
United States Steel Corporation, minutes of directors, finance com-
mittee, executive committee, general managers of sales, auditors
supplemental extracts from finance committee minutes.
Carnegie Steel Co. (of New Jersey).
Carnegie Steel Co. (of Pennsylvania).
The Carnegie Co.
Index Carnegie Steel Co.'s minutes.
Clairton Steel Co.
Union Steel Co.
Federal Steel Co. (directors' minutes).
American Bridge Co. of New Jersey.
American Bridge Co. of New York.
Empire Bridge Co.
Trenton Iron Co.
Tennessee Coal, Iron & Railroad Co.
Universal Portland Cement Co.
Universal Portland Cement Co. (directors' minutes).
American Steel & Wire Co. of New Jersey
H. C. Frick Coke Co.
United States Steel Products (export) Co.
Illinois Steel Co. (directors' minutes) .
American Sheet Steel Co.
National Tube Co.
Shelby Steel Tube Co.
7. I have requested the production of the following minutes, wluch
have not been furnished :
United States Steel Corporation, subsidiary companies' presidents'
meetings, minutes or records of meetmgs (it was stated that none is
kept) ; purchasing agents.
UNITED STATES STEEL. COEPOEATION. 3735
Carnegie Steel Co. (of Pennsylvania) before 1901.
lUinois Steel Co., executive and finance committees.
Universal Portland Cement Co., executive and finance committees.
National Steel Co.
Lake Superior Consolidated Iron Mining Co.
Duluth, Missabe & Northern Railway.
Duluth & Iron Range Railway.
Pittsburg Steamship Co.
American Steel Hoop Co.
I have also requested that the United States Steel Corporation
■ furnish the minutes of executive and finance committees of suDsidiary
companies, where such committees existed and where the minutes
have not already been furnished as shown above; and such minutes
have not been furnished to me.
Also, Mr. Anthony J. Ernest, of the New York bar, employed by
me and under my direction, is preparing a summary or brief of the
evidence extracted from these minute books by him and from the
testimony already taken, which I believe wUl be of value to the com-
mittee and which I expect will be completed in 30 days.
The letter from J. A. Farrell to Mr. Corey, dated July 27, 1903, and,
the letter from Mr. Farrell referred to in the minutes of finance
meeting April 11, 1905, and the schedule of profits of the principal
products of the organization at present prices submitted at meeting
of finance committee April 27, 1909, have not been received by me.
A great loss of time has been caused by repeated delays on the part
of the corporation in furnishing minutes and other matter requested.
At the office of the corporation in New York the explanation was
made that counsel had to read all the minutes before I could be per-
mitted to see them; that former officials or persons who had been
interested in certain subsidiary companies had to be consulted before
the minutes of that company could be furnished; that other officials,
who were then absent on vacation, had to be consulted before furnish-
ing certain minutes or data; that on account of the press of other
business counsel had been unable to read the minute books preparatory
to furnishing same; that absence from the office and from the city of
ofiicials who were supposed to have information desired had rendered
it impossible to furnish the matter required until after a short delay;
the commencement of the Government suit has been referred to as a
cause for delay; the Senate investigation has also been referred
to; in the oflices of the subsidiary companies in Pittsburgh several
delays of two or three days occurred in complying with requests for
reason, as stated, of the necessity of obtaining the consent of coun-
sel in New York to the furnishing of data asked for.
Although some of the delays may have been entirely excusable, as,
for instance, the delay of three days while part of the office of the
corporation was being rearranged and repainted, on the other hand,
the c recurrence and frequency of these postponements prevented
proper expedition in the prosecution of the work in its entiret;y^,
and^in the short intervals when records and documents were avail-
able it increased the difficulty of the work and the need for speed in
doing it. The fact that many of the documents and books were
sup^ied in fragments — no part being furnished until the part fur-
nished had been examined and abstracted — has also increased the
difficulty of the work and consumed time.
3736 UNITED STATES STEEL CORPORATION.
My attention having been called to criticisms in certain quarters
regarding the expense of this investigation, I believe it is due the
committee and myself to make the following explanations in regard
to the work being done by me.
The time spent by a large force with the admitted assistants of the
United States Steel Corporation and the expenditure of a large
amount of money by them is illustrated by the report of Mr. Herbert
Knox Smith, and I believe that the committee will fully appreciate
the labor involved in the investigation of the affairs of a corporation
of such magnitude as the steel company. It should be borne in
mind that at no time in the prosecution of the work have there been
less than three men, and generally four men, engaged in doing it
under my direction, besides typewriters and copyists, and these
necessarily had to be of more than average skill and experience.
In view of the extent and complexity of the detail involved in ex-
amining the financial affairs of the corporation and its many sub-
sidiaries, this seems to be the minimum force that could make an
intelligent and comprehensive investigation.
If an appropriation of $25,000 had Been devoted to the accounting
work alone in the investigation of the corporation it would not have
been too large or disproportionate an amount in comparison with the •
fees ordinaruy paid to professional public accountants for auditing or
investigating the books of corporations in general or this corporation in
E articular. This is especially true in the case of this corporation
ecause of its great size and the number of its subsidiary concerns, and
also because me cost of ordinary accounting would be calculated in
consideration of the expectation that the corporation itself would
assist and facilitate the compilation of the account, which was done
for the commissioner of corporations, and which .was not done as to
the figures compiled by me for the particular purposes of this com-
mittee. This was explained by me in substance to the committee at
the outset of the work and before my engagement as accountant.
F. J. MacRae,
Certified Public Accountant.
PiUsburgh Steamship Co. — Profit and loss statement for 1910.
Gross earnings from operations:
Ore freights $9, 862, 138. 39
Coal freights 506, 400. 50
Sundry freights 1, 672. 50
$10, 370, 211. 39
Operating expenses 6, 710, 898. 16
Balance 3, 659, 313. 23
Miscellaneous gains and losses 431^ 111. 18
Other income 77^ 688. 37
Total income 4, 168, 112. 78
Interest charges 648, 899. 86
Depreciation and extinguishment funds, bond-sinking
funds, extraordinary replacements, etc 993, 729. 99
1, 642, 629. 85
Net earnings, as stated 2, 525, 482. 93
Capital stock 7, 880, 000. 00
Bonded mortgages and other capital debt 12, 704, 000. 00
UNITED STATES STEEL COEPORATION. 3737
Pittsburgh d- Conneaut Dock Co.— Profit and loss statement for 1910.
Gross earnings from operations:
Unloading ore from vessels 51, 344, 455. 25
Loading ore on cars 276 518. 14
Loading cars on vessels 25, 912! 42
Loading steel rails, etc., on vessels I5', 620. 04
$1, 662, 505. 85
Operating expenses 722, 136. 51
Balance 94Q 359 34
Miscellaneous gains and losses 91' ggg 82
Other income .'.....'.'.['.'.'. d, eos! 28
Total income 1, 041, 672. 44
Less extinguishment funds, extraordinary replacements, etc 100, 000. 00
Net earnings as reported 941^ 672. 44
Capital stock 10o| OOo! 00
Document No. 2a.
tkiai^ealance as op dec. 31, 1903.
Debits.
The Carnegie Co., collateral trust bonds $159, 917, 000. 00
Cost of capital stock of the Carnegie Steel Co., of New Jersey
(629,988 shares) 504, 103, 492. 45
Cost of capital stock of the Carnegie Steel Co., of New Jersey, owned
(12 shares) 1, 200. 00
Coat of common stock, Federal Steel Co. (464,838 shares) 61, 137, 617. 78
Cost of common stock, Federal Steel Co., owned (5 shares) 500. 00
Cost of preferred stock, Federal Steel Co., (532,609 shares) 66, 192, 071. 70
Cost of National Tube Co. (399,991 shares) 63, 018, 916. 81
Cost of National Tube Co., owned (9 shares) 1, 100.00
Cost of preferred stock. National Tube Co. (400,000 shares) 56, 483, 545. 77
Cost of common stock, American Steel & Wire Co., of New Jersey
(499,008 shares) 60, 438, 031. 88
Cost of common stock, American Steel & Wire Co., of New Jersey,
owned (886 shares) 88, 600. 00
Cost of preferi'ed stock, American Steel & Wire Co., of New Jersey
(399,885 shares) 53, 093, 421. 29
Cost of preferred stock, American Steel & Wire Co., of New Jersey,
owned (5 shares) 500. 00
Cost of common .^tock, American Tin Plate Co. (279,990 shares) 47, 665, 565. 11
Cost of common stock, American Tin Plate Co., owned (lOshares).. 1, 000. 00
Cost of preferred stock, Ameri(;«n Tin Plate Co (183,250 shares). . . . 25, 875, 367. 52
Cost of common stock, American Sheet Steel Co. (244,971 chares). . . 28, 938, 080. 06
Cost of common stock, American Sheet Steel Co., owned (25 shares) . 2, 500. 00
Cost of preferred stock, American Sheet Steel Co. (244,977 shares) . . 27, 673, 699. 14
Cost of preferred stock, American Sheet Steel Co., owned (19 shares). 1, 900. 00
Cost of common stock, American Bridge Co. (309,503 shares) 32, 514, 714. 06
Cost of common stock, American Bridge Co., owned (5 shares) 500. 00
Cost of preferred stock, American Bridge Co. (313,738 shares) 34, 528, 528. 74
Cost of Lake Superior Consolidated Iron Mines Co. (294, 338 shares) . . 79, 498, 493. 71
Cost of capital stock. Lake Superior Consolidated Iron Mines Co. . . 700. 00
Cost of Oliver Iron Mines Co. , owned (2,000 shares) \ ig 514 312 02
Costof capitalstock,Pitt8burghSteamshipCo.,owned(2,217shares)./ ' '
Cost of common stock, Shelby Steel Co., owned (114 shares) 10, 000. 00
Cost of common stock, Shelby St«el Co. (81,351 shares) 2, 025, 317. 84
Cost of preferred stock, Shelby ^teel Co. (49,998 shares) 1, 902, 938. 32
1, 323, 631, 614. 20
3738
UNITED STATES STEEL CORPORATION.
Organization expenses:
Note. — This account is debited with items, aggregating
$1,041,395.24, which, by journal entries, are transferred to the
costs of the various securities acquired.
Investments for insurance fund
Investment for account employees bonus fund
Investments in securities of outside companies
Cost of United States Steel Corporation preferred stock, owned. .
Investments for account of sinking fund
United States Trust Co., of New York, trustee
Investments for United States Steel Corporation, 50-year 5 per
cent gold bond, sinking fund
Federal Steel Co., dividend account
National Tube Co. , dividend account
American Tin Plate Co. , dividend account
American Sheet Steel Co. , dividend account
Lake Superior Consolidated Iron Mines Co., dividend account
Oliver Iron Mining Co. , dividend account
Pittsburgh Steamship Co. , dividend account
The Carnegie Co., dividend account
The Carnegie Co. , of New Jersey, loan account
Union Steel Co. , general account
Union Steel ( 'o. , interest on sinking fund
Oliver Iron Mining Co., general account
Union R. R. Co., general account
Lake Superior Consolidated Iron Mines Co., loan account
Pittsburgh Steamship Co. , loan account
J. P. Morgan & Co., bond interest account
The Carnegie Co., bond interest account
Carnegie Steel Co., interest account
Bessemer & Lake Erie R. R. Co., general accoimt
United States Steel Corporation, clearance account
Interest accrued on investments for account of sinking fund
Employees preferred stock subscriptions
Interest accrued on investments 50-year bond sinking fund.
Accrued intere.~t on investments in securities of outside companies. .
J. P. Morgan & Co. , interest account
Cash.
Sundry companies and individuals
J. P. Morgan & Co
Premiums paid on LTnited States Steel Corporation 50-year
cent gold bonds, purchased for sinking fund
United States Steel, 1060'5 per cent .-iinkmg fund bondi
5 per
s m treasury.
$1, 231, 469. 42
548, 625. 00
1, 191, 143. 23
1, 051, 270. 00
1, 197, 674. 81
5, 604, 955. 05
1,500,
17, 068,
1, 500,
1, 160,
1, 408,
183,
600,
221,
15, 510,
520,
594,
1, 016,
83,
4, 500,
8, 500,
1,411,
1, 999,
1,
188,
715,
12,
645,
30,
18,
2,
8, 776,
14,
12, 822,
1.S1. 25
418. 50
000. 00
687. 50
727. 00
449.50
000. 00
700. 00
000. 00
000. 00
953. 24
1.00
341.26
400. 38
000. 00
000. 00
718. 68
945. 85
733. 33
000.00
463. 65
775. 00
425. 27
383. 34
737. 50
744. 96
491. 53
621. 54
900.00
738, 343. 61
30, 000, 000. 00
Total debit 1, 446, 201, 865. 60
Credits.
Carnegie Steel <^o., general account, credit balance
Federal Steel Co. , general account
National Tube Co
American Steel A W.ire Co., of New Jersey
American Tin Plate Co. , general account
American Sheet Steel Co., general account
Federal Steel Co., interest.account
Subsidiary companies insurance fimd
Common stock
Preferred stock
United States Steel Corporation, 50-year 5 per cent gold bonds:
Series A So3, 910, 000. 00
Series B 49, .565, 000. 00
Series C 48, 985, 000. 00
Series D 4s, 337, 000. 00
Series E 49, 944, 000. 00
Series F 47, 578, 000. 00
$38, 750. 00
3, 428, 881. 50
85, 889. 25
2,471,135.42
8, 784. 00
4, 860. 27
1.94
1, 900, 293. 00
508, 302, 500. 00
360, 281, 100. 00
■298, 319, 000. 00
UNITED STATES STEEL CORPOKATIOK. 3739
United States Steel Corporation, 1060' 50-year, 5 per cent sinking
fund gold bonds $152,902,500.00
J. P. Morgan & Co., compensation account, balance due:
Compensation for the conversion of preferred
stock into 5 per cent bonds $6, 116, 112. 00
Less paid on account 6, 016, 440. 00
Balance due as above 99, 672. 00
Further sum reserved until completion of transactions,
$683,388, making compensation, as charged, $6,800,000.
Audited vouchers 122, 428. 25
Accrued interest on bonds 4, 473, 754. 16
Accrued interest on Steel Corporation 1060' siaking fund gold
bonds 1, 274, 187. 50
Matured unpresented coupons 51, 551. 99
Accrued bonus fund 634, 642. 37
Accrued special bonus fund, 1903, on employees' preferred stock
subscriptions 237, 185. 00
Dividends on preferred stock, unpaid 6, 304, 919. 25
Accrued interest due J. P. Morgan & Co 53,431. 25
Guarantee fund for indebtedness due from American Bridge Co 750, 000. 00
Accrued sinking fund on United States Steel, 50-year 5 per cent
gold bonds 1, 773, 333. 33
Sinking fund paid on United States Steel Corporation 5 per cent
gold bonds 6,080,000.00
Atfcrued sinking fund on United States Steel, 1060' 50-year 5 per
cent gold bonds 757, 500. 00
United States Steel Corporation, 50-year 5 per cent gold bonds
in sinking fund :
Series A $75, 000. 00
Series B 421,000. 00
Series C 1, 000, 000. 00
Series D 1,649,000.00
Series E • 44, 000. 00
Series F 2,409,000.00
5, 598, 000. 00
Accretions to United States Steel, 50-year 5 per cent sinking fund
gold bonds 263,298.66
United States Steel Corporation 1060' 5 per cent sinking fund bonds
issued and sold but undelivered 17, 097, 500. 00
United States Steel 1060' 50-year 5 per cent sinking fund gold bonds
issued but unsold 30,000,000.00
Profit and loss account 42, 202, 878. 46
Reserve for compensation payable in connection with conversion of
preferred stock into bonds 683, 888. 00
Total credits 1,446,201,865.60
Pittsburgh & Conneaut Dock Co. profit and loss statement for 1910.
Gross earnings from operations:
Unloading ore from vessels $1, 344, 455. 25
Loading ore on cars 276, 518. 14
Loading cars on vessels 25, 912. 42
Loadingsteelrails, etc., on vessels 15,620.04
^ $1, 662, 50o. 85
Operating expenses 722, 136. 51
Balance 940,369.34
Miscellaneous gains and losses 91. 699. 82
Other income 9,bU3..J»
Total income 1' 041, 672. 44
Less extinguishment funds, extraordinary replacements, etc 100, 000. 00
Net earnings as reported ?nn'nnn'nn
Capital stock 100,000.00
3740 UNITED STATES STEEL. COEPOEATION.
Pittsburgh Steamship Co. profit and loss statement for 1910.
Gross earnings from operations:
Ore freigtits $9, 862, 138. 39
Coal freights 506, 400. 50
Sundry freights 1, 672. 50
$10, 370, 211. 39
Operating expenses 6, 710, 898. 16
Balance 3, 659, 313. 23
Miscellaneous gains and losses 431, 111. 18
Other income 77, 688. 37
Total income 4, 168, 112. 78
Interest charges 648, 899. 86
Depreciation and extinguishment funds, bond sinking
funds, extraordinary replacements, etc 993, 729. 99
— 1, 642, 629. 85
Net earnings, as stated 2, 525, 482. 93
Capital stock 7, 880, 000. 00
Bonded mortgages and other capital debt 12, 704, 000. 00
w
No. 53
(IN FOUR PARTS)
PART II
UNITED STATES STEEL CORPORATION
HEARINGS
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF EEPEESEI^TATITES
WEDNESDAY, FEBRUARY 28, 1912
e
WASHINGTON
GOVEENMBNT PRINTING OITIOE
1912
EEPORT OF
FARQUHAR J. MacRAE
TO CHAIRMAN OF SPECIAL COMMITTEE TO INVESTIGATE
VIOLATIONS OF THE ANTITRUST ACT OF
1890, AND OTHER ACTS.
IN FOUR_PARTS:
Part II— EXTRACTS FROM MINUTES, ETC.
3741
EXHIBIT 28.
-I EXTRACTS FROM MINUTES OF THE UNITED STATES STEEL
CORPORATION AND SUBSIDIARY COMPANIES, AS FAR AS
FURNISHED AND EXAMINED BY ME.
3743
INDEX OF MINUTES OF DIRECTORS AS EXTRACTED.
American Bridge Co., 306,558 shares preferred and 306,289 shares of common, acquired
and turned over by J. P. Morgan & Co. at ninth meeting. May 7, 1901.
American Sheet Steel Co. eamiags, 10 months ending January 31, 1901, second meet-
ing, March 1, 1901.
American Sheet Steel Co. stock, original purchase by J. P. Morgan & Co., second
meeting, March 1, 1901.
American Steel Co., merger with Carnegie Co. and National Steel Co. suggested at
twenty-ninth meeting, January 6, 1903.
American Steel Hoop Co. stock, original purchase by J. P. Morgan & Co., second
meeting, March 1, 1901.
American Steel & Wire Co. of New Jersey, original stock, original purchase by J. P.
Morgan & Co., second meeting, March 1, 1901.
American Tin Plate Co. stock, original purchase by J. P. Morgan & Co., second meet-
ing, March 1, 1901.
American Tio Plate Co. capital stock reduction from $46,325,000 to $25,000, Union
Trust Co. to execute proxy to vote in favor of reduction, requested at sixty-second
meeting, September 26, 1905.
Arragon Mine written off as reduction $200,000 at one hundred and seventh meeting,
February 23, 1909.
Assets, increased value, reported by president at eleventh meeting, July 2, 1901.
Bessemer Steamship Co., acquired April 1, 1901.
Bonds, second-mortgage 5 per cent, offer of J. P. Morgan & Co. submitted at twenty-
second meeting, Jime 3, 1902.
Bonds, second-mortgage 5 per cent, action of officers in defending suits concerning, in
New Jersey, approved at twenty-fourth meeting, September 2, 1902.
Bonds, second-mortgage 5 per cent, authorization to carry out contract at twenty-fifth
meeting, September 22, 1902.
Bonds, second-mortgage 5 per cent, contract with J. P. Morgan & Co. concerning,
extended for nine months at thirty-first meeting, March 3, 1903.
Bonds second mortgage 5 per cent contract with J. P. Morgan & Co. surrendered at
fortieth meeting, December 1, 1903.
Capital original subscription, first meeting, February 25, 1901.
Capital stock increased to $1,100,000,000, consisting of $550,000,000, 7 per cent cumula-
tive and $550,000,000 common stock recommended at third meeting, adjourned
April 1, 1901. . ^ ^
Capital appropriations and expenditures set aside at eightieth meetmg, February 26,
1907.
Carnegie Steel Co. appropriations for capital expenditures set aside at eightieth meet-
ing, February 26, 1907. , ^. , , ,
Capital expenditures 1907, the resolution that same be charged to profit and loss surplus
of subsidiary companies at ninety -fourth meeting, February 25, 1908.
Capital appropriations and expenditures on account of Gary, Ind., at nmety-fourth
meeting, February 25, 1908. , , , , . j j ^i, ,.
Capital expenditures charged off to reserve fund at one hundred and seventh meet-
ing, February 23, 1909. . -r ^ ^, , /. j 4.- at v.
Carnegie Co., stock, original purchase by J. P. Morgan & Co., second meetmg, March
Carnegie Co. bonds, original purchase by J. P. Morgan & Co., second meeting, March
Oarnerie Co., stock and bonds outstanding, second meeting March 1, 1901.
Camelie Co net earnings 1900, second meeting, March 1, 1901.
Carnegie Co'.', merger with American Steel Co. and National Steel Co. suggested at
CaSSTst^fc™ of NlwSyf capital stock increase from $63,000,000 to $65,250,000
referred to at fifty-seventh meeting, April 25, 1905. - ^^^^
3746 UNITED STATES STEEL COEPOEATION.
Carnegie Steel Co., additional coal, ore, and other properties acquired, $1,747,216.59,
at one hundred and seventh meeting, February 23, 1909.
Chicago, Lake Shore & Eastern Railroad Co., bonds purchased and to be sold with
guaranty of United States Steel Corporation. Action of finance committee ratified
at one hundred and twelfth meeting, June 29, 1909.
Clairton property and Campbell tract, purchase ratified and payment therefor ap-
proved at sixty-third meeting, October 31, 190-.
Clairton Steel Co., bonds guaranteed at forty-fifth meeting. May 3, 1904.
Colorado Fuel & Iron Co., voted to acquire, April 1, 1901.
Connellsville Central Railroad Co., Richard Trimble appointed attorney in fact to
acknowledge agreement with Pennsylvania Railroad Co. for construction of railroad
of last-named company at thirty-fourth meeting, June 2, 1903.
Constituent companies, statement showing statistics of mining, manufacturing, and
transportation for year ending March 31, 1902, presented at twenty-first meeting.
May 6, 1902.
Crucible Steel Co., action of finance committee and officers in making agreement with,
dated April 29, 1904, approved at forty-eighth meeting. May 3, 1904.
Federal Steel Co., stock, original purchase by J. P. Morgan & Co., second meeting,
March 1, 1901.
Gary Plant, Indiana, $5,000,000 capital expenditure set apart for, at one hundred and
twenty-second meeting, March 15, 1910.
Gary Plant, $10,000,000 set aside from 1910 income for expenditures on account of, at
directors meeting, March 16, 1911.
Governmental investigation, statement by president regarding proposed, at seventy-
second meeting, June 26, 1906.
Great Western Mining Co., agreement, resolution to exhibit guarantee by United
States Steel Corporation of, adopted at eightieth meeting, February 26, 1907.
Guarantee funds for realization of advances, royalties on mining leases, etc., $3,200,000
set aside at one hundred and twenty-second meeting, March 15, 1910.
Lake Superior Consolidated Iron Mines, 293,886.3760 shares acquired and turned over
by J. P. Morgan & Co. at ninth meeting. May 7, 1901.
Lorain Steel Co., appropriation for capital expenditures set aside at eightieth meeting,
February 26, 1907.
Lorain Steel Co., additional coal, ore, and other properties acquired, $250,000, at one
hundred and seventh meeting, February 23, 1909.
Monongahela Southern Co. bonds guaranteed by United States Steel Corporation at
one hundred and ninth meeting, March 30, 1909.
Morgan, J. P., & Co., proposition for the sale and delivery of stocks of the Federal Steel
Co., National Steel Co., National Tube Co., American Steel & Wire Co. of New
Jersey, American Tin Plate Co., American Steel Hoop Co., American Sheet Steel
Co., and the Carnegie Co., submitted at second meeting, March 1, 1901.
Morgan, J. P., & Co., proposition to acquire stock of Lake Superior Consolidated Iron
Mines, Bessemer Steamship Co., American Bridge Co., Colorado Fuel & Iron Co.,
Ohver Iron Mining Co., Pittsburgh Steamship Co., subniitted at third meeting,
March 30, 1901.
Morgan, J. P., & Co., reply to their letter of April 3, 1901, authorized at sixth meeting,
April 3, 1901.
Morgan, J. P., & Co., resolution to accept from, the sum of $25,000,000 5 per cent col-
lateral trust bonds Carnegie Co. for §113,000,000, and American Sheet Steel Co.'s
preferred stock $24,387,900 and common stock $24,149,200; American Steel Hoop
Co.'s preferred stock $13,493,500 and comm.on stock $18,912,300; American Steel
& Wire Co. of New Jersey, preferred stock $39,164,500 and common stock $49,595,600;
American Tin Plate Co.'s preferred stock $18,142,300 and common stock $27,873,300;
Carnegie Co., stock $153,050,000; Federal Steel Co.'s preferred stock $51,113,700
and common stock .?41, 124,400; National Steel Co.'s preferred stock $26,379,100 and
common stock $31,803,500; National Tube Co.'s preferred stock $37,894,800 and com-
mon stock $38,858,900.
Morgan, J. P., & Co., transfer to, of bonds and stock of United Slates Steel Corporation
in part performance of contract for stocks of constituent companies, at sixth meet-
ing, April 3, 1901.
Morgan, J. P., & Co., as syndicate managers, delivered in further performance of agree-
ment of March 1, 1901, the following stocks in addition to those heretofore received:
American Sheet Steel Co., 340,000 shares preferred; American Steel Hoop Co., 70,000
shares preferred; American Steel & Wire Co. of New Jersey, 165,300 shares preferred;
American Tin Plate Co., 10,200 shares preferred; National Steel Co., 50,500 shares
preferred; National Steel Co., 90,000 shares preferred; National Tube Co., 304,300
shares preferred; Carnegie Co., 760,000 shares and 1,085,100 shares preferred stock
of United States Steel Corporation issued for same at seventh meetins, April 6, 1901.
UNITED STATES STEEL COHPOKATION. 3747
Morgan, J. P., & Co., compensation of, under contract of April 1, 1901, for procuring-
stocks of companies etc., referred to finance committee to fix and provide payment,
at ninth meeting, May 7, 1901.
Morgan, J. P., & Co., letter from, dated January 2, 1902, in re settlement and mutual
releases ot matters concerning acquisition of stocks, etc., received at seventeenth
meeting, January 7, 1902.
National Steel Co. stock, original purchase by J. P. Morgan & Co., second meeting,
jVLSircii i.j iyUi.
National Steel Co., merger with Carnegie Co. and American Steel Co., suggested at
twenty-ninth meeting, January 6, 1903.
National Tube Co. stock, original purchase by J. P. Morgan & Co., second meeting,
March 1, 1901.
National Tube Co., appropriations for capital expenditures set aside at eightieth
meeting, Februai-y 26, 1907.
National Tube Co., additional coal, ore, and other properties acquired at one hundred
and seventh meeting, February 23, 1909 ($800,000).
National Tube Works, allowed for depreciation $200,000 at one hundred and seventh
meeting, February 23, 1909.
New Jersey general corporation law, amendment of, referred to at nineteenth meet-
ing, March 4, 1902.
New Jersey Legislature, amended New Jersey act concerning corporations, referred
to at twentieth meeting, April 1, 1902.
Norfolk & Western Coal & Coke Co., report of special committee confirmed at seven-
teenth meeting, January 7, 1902.
Oliver Iron Mining Co., all shares of, acquired and turned over by J. P. Morgan &
Co. at ninth meeting. May 7, 1901.
Oliver Iron Mining Co., additional coal, ore, and other properties acquired, $250,000,
at one hundred and seventh meeting, February 23, 1909.
Outstanding shares of constituent companies stated at sixth meeting, April 3, 1901.
Pittsburgh Steamship Co., all shares of, acquired and turned over by J. P. Morgan
& Co. (except shares owned by Carnegie Co.), at ninth meeting. May 7, 1901.
Pittsburgh Coal Co., execution of agreement with, dated April 20, 1905, approved at
fifty-seventh meeting, April 25, 1905.
Pocahontas coal properties, acquisition of lease of, referred to special committee con-
sisting of Charles M. Schwab, P. A. B. Widener, and Charles Steele, at sixteenth
meeting, December 3, 1901.
Pocahontas Coal & Coke Co., report of special committee confirmed at seventeenth
meeting, January 7, 1902.
Preferred stock, plan for conversion and retirement of, approved at nineteenth meet-
ing, March 4, 1902.
Preferred stock, conversion or retirement, resolution to retire 2,000,000 shares out of
total issue, not exceeding $250,000,000, of $50,000,000 to be offered for cash at par,
adopted at twentieth meeting, April 1, 1902.
Preferred stock, conversion or retirement, contract made with J. P. Morgan & Co.,
at twentieth meeting, April 1, 1902.
Preferred stock, conversion or retirement, offer of J. P. Morgan & Co., relating to
issue of $250,000,000 of bonds submitted at twenty-second meeting, June 3, 1902.
Profits, surplus net, amount of, referred to at fourteenth meeting, October 1, 1901.
Reports, official, printed of the Federal Steel Co., National Steel Co., National Tube
Co., American Steel & Wire Co. of New Jersey, American Tin Plate Co., American
Steel Hoop Co., American Sheet Steel Co., submitted at second meeting, March
1,1901.
Rockefeller, J. D., interest in Lake Superior Consolidated Iron Mines, acquisition of,
arranged at third meeting (adjourned), April 1, 1901.
St. Clair Steel Co., bonds guaranteed by United States Steel Corporation at forty-fifth
meeting. May 3, 1904.
St. Clair Furnace Co., bonds guaranteed at forty-fifth meeting. May 3, 1904.
Stock assessment, 100 per cent on original shares, first meeting, February 25, 1901.
Subsidiary companies, additional coal, ore, and other properties acquired, $3,611,-
264.50, one hundred and seventh meeting, February 23, 1909.
Subsidiary companies, cajjital expenditures, $10,000,000, set apart at one hundred
and twenty-second meeting, March 15, 1910.
Subsidiary companies, $15,000,000 capital expenditures set aside at directors meet-
ing, March 16, 1911. . . , , . ■. -
Tennessee Coal, Iron & Eaihoad Co., resolution to acqun-e not less than majority ot
outstanding stock adopted at ninetieth meeting, November 6, 1907.
Troy Steel Products Co., agreement to purchase not less than majority interest
approved at twenty-ninth meeting, January 6, 1903.
3748 UNITED STATES STEEL COEPORATION.
Troy Steel Plant, disposition of securities and property referred to finance committee
at twenty-ninth meeting, January 6, 1903.
Union Steel Co., contract with A. W. Mellon, R. B. Mellon, W. H. Donner, William
Flinn, George W. Darr, John Stevenson, jr., and J. P. Whitla, for purchase of Union
Steel Co. capital stock, adopted at twenty-ninth meeting, January 6j 1903.
United States Trust Co., indenture granting shares of stock of Carnegie Co., Federal
Steel Co., National Steel Co., National Tube Co., American Steel & Wire Co. of New
Jersey, American Tin Plate Co., American Steel Hoop Co., American Sheet Steel
Co., and bonds of the Carnegie Co., approved for execution at sixth meeting, April 3,
1901.
United States Trust Co. requested to execute proxy to vote shares for reduction of
capital stock of American Bridge Co., at one hundred and thirtieth meeting, Octo-
ber 25, 1910.
Venner, C. H., Co., Boston, letter from, dated February 13, 1904, in re claim against
J. P. Morgan & Co. on account of syndicate matters, submitted by Mx. Stetson at
forty-third meeting, March 1, 1904.
EXTRACTS FROM MINUTES OF BOARD OF DIRECTORS,
UNITED STATES STEEL CORPORATION.
MINUTES OF BOARD OF DIRECTORS, UNITED STATES
STEEL CORPORATION.
February 25, 1901.
Incorporators' first meeting.
Present: W. J. Curtis, C. C. Cluff, and Charles MacVeagh.
The minutes of the first meeting of incorporators recite the filing
of the certificate, waiver of notice of meeting, and the election of
C. C. Cluff a director for one year, Charles MacVeagh a director for
two years, and W. J. Curtis a director for three years.
That Messrs. Cluff, Curtis, and MacVeagh subscribed for the orig-
inal subscription of 15 shares of common and 15 shares of preferred
stock, in the aggregate amounting to $30,000.
The stock was assessed 100 per cent, in accordance with the waiver
of notice of the meeting.
The principal place of business of the company is at 51 Newark
Street, Hoboken, N. J. The company maintains an office and agent
in New Jersey, in accordance with the law. The Hudson Trust Co.
is' agent of the company in New Jersey.
March 1, 1901.
Directors' second meeting.
Present: W. J. Curtis, C. C. Cluff, and Charles MacVeagh.
Mr. Steele addressed the meeting as follows :
Mr. President and gentlemen, in behalf of the firm of J. P. Morgan
& Co., who are acting on behalf of a syndicate, I desire to lay before
your board a proposition for the sale and delivery to your corpora-
tion of at least 51 per cent of the outstanding capital stock in each
of the following companies, to wit: The Federal Steel Co., National
Steel Co., National Tube Co., American Steel & Wire Co. of New Jer-
sey, American Tin Plate Co., American Steel Hoop Co., American
Sheet Steel Co., and the Carnegie Co.
Five per cent gold bonds of the Carnegie Co. and the sum of
$25,000,000 in money, in consideration of the issuance by your cor-
poration of paid-up shares of the preferred stock and paid-up shares
of the common stock and 50-year 5 per cent gold bonds of your
corporation, on the terms of the agreement of which I now submit a
draft for the consideration of your board. I desire to state on behalf
of the syndicate that they have already made arrangements for the
acquisition of substantially all of the stock and bonds of the Carnegie
Co
For the information of your board I submit here the official printed
reports of the various companies named in the contract, excepting
the Carnegie Co. I don't think there is any printed report of that
company We are informed by the officers of the Carnegie Co. that
they have now outstanding $160,000,000 5 per cent bonds and
$160 000 000 par value of stock, their stock being one class. The
principal' officers of that company have satisfied us that the net earn-
mgs of the properties which are now included in the Carnegie Co.
M the year 1900 are upward of $40,000,000.
3750 UNITED STATES STEEL COEPOEATION.
As to the American Sheet Steel Co., I can state generally that the
earmngs of the company for the 10 months ending January 31, 1901,
have been reported to us as being $850,000 net, after making a sub-
stantial allowance for depreciation and investments in improvements.
We are prepared to enter into a contract in the form which I sub-
mit to your board, if upon consideration your board deemed it wise
to make such a contract with us.
Mr. Steele thereupon withdrew.
The president then stated that all the members of the board of
directors were familiar with the business embraced in the proposition,
all of them having been long connected with the companies engaged
in such business and they had made independent investigations of the
condition of the properties referred to m the contract proposed by
Messrs. J. P. Morgan & Co., and the value of these properties to the
United States Steel Corporation * * * _
All the directors appeared before the board, etc.
Upon motion it was resolved that this board deems it necessary for
the business of this corporation now to acquire the stocks of the
following named companies, viz: The Federal Steel Co., National
Steel Co., National Tube Co., American Steel & Wire Co., of New
Jersey, American Tin Plate Co., American Steel Hoop Co., American
Sheet Steel Co., and the Carnegie Co.; and after careful investigation
and appraisement has ascertained, adjudged, and determraed and
hereby the directors do and each of them does ascertain, adjudge, and
determine that the value of the bonds and stocks to be acquired by
the United States Steel Corporation under and in pursuance of a con-
tract of the form and tenor of the draft contract submitted and read
at this meeting and proposed to be made with Messrs J. P. Morgan &
Co., acting in behalf of the syndicate (exclusive of the cash sum of
$25,000,000 mentioned in said contract) is equal at least to the par
value of the stock of the United States Steel Corporation and of the
bonds of the said corporation to be issued therefor under said proposed
contract.
The president and secretary were authorized to make the contract.
March 30, 1901.
Directors' third meeting.
Present: W. J. Curtis, C. C. Cluff, and Charles MacVeagh.
Mr. Steele, on behalf of J. P. Morgan & Co., submitted the question
whether it would be in the interests of the United States Steel Cor-
E oration to acquire the stocks of the following-named companies:
ake Superior Consolidated Iron Mines, Bessemer Steamship_ Co.,
American Bridge Co., Colorado Fuel & Iron Co., OUver Iron Mining
Co., Pittsburgh Steamship Co.
Messrs. J. P. Morgan & Co. offered to act in acquiring the stock of
these companies under an agreement' the form of which was sub-
mitted.
April 1, 1901.
Directors' third meeting, adjourned.
Present: W. J. Curtis, C. C. Cluff, and Charles MacVeagh.
On motion duly made and seconded and by the affirmative vote of
all the directors the following resolutions were adopted:
Whereas this board deems it desirable for the business of this corporation now to
acquire the stocks of the following-named companies owning, mining, manufactur-
UNITED STATES STEEL COHPOEATION. 3751
co?;o°/at?on'^'io''^t"'f»v'^^' °' •'^'^' property necessary for the business of this
corporation, to wit Lake Superior Consolidated Iron Mines, Bessemer Steamship
P?t-|«wr'^? Bridge Co., Colorado Fuel & Iron Co., Oli'ver Iron Min^^Co^
Pittsburgh Steamship Co and after careful investigation and appraisement this
board has ascertained and adjudged and determined and hereby the directors do
and each of them does ascertain, adjudge, and determine that the value of such
stocks severally and respectively is equal at least to the par value of the stocks of
this company and the sums m cash to be issued and paid therefor if purchased or
?'^'^i?T/ ^ this company on the terms of the proposed agreement authorizing
J. ir". Morgan & Co. to procure the sale thereof to this company, a draft of such
proposed agreement having been submitted to the board of directors and read- and
Whereas an arrangement has been made for the acquisition for more than 85 percent
of the capital stock of the Lake Superior Consolidated Iron Mines, embracing therein
the interests of Mr. John D. Rockefeller at the price of $270 per share, payable one-
half in paid-up preferred stock and one-half in paid-up common stock at par, and
the vendors have made it a condition of such arrangement that similar terms shall
be offered to the holders of the remaining outstanding stock of said Lake Superior
Consolidated Iron Mines;
Resolved, That such proposed agreement under date of April 1, 1901, be executed
in duplicate by the president for and on behalf of the company, and that the corporate
seal be thereunto aflBxed and attested by the secretary, and that the draft of such
agreement now submitted be filed with the secretary.
The contract was confirmed at the meeting of stockholders and
incorporators on April 1, 1901.
It was recommended that the capital stock be increased to $1,100,-
000,000, of which $550,000,000 shall be 7 per cent cumulative stock
and $550,000,000 common stock.
April 3, 1901.
Directors' sixth meeting.
Present: W. J. Curtis, C. 0. Cluff, and Charles MacVeagh.
Letter received from J. P. Morgan & Co. and draft of letter in
reply.
By the affirmative vote of all present, it was
Resolved, That the president be authorized to sign and deliver a letter in the form
of the draft thereof now submitted in reply to the letter of J. P. Morgan & Co.
addressed to this company under date of April 3, 1901;
Resolved, That in part performance of the contract dated March 1, 1901, this cor-
poration hereby does accept from Messrs. J. P. Morgan & Co. the sum of $25,000,000
5 per cent collateral trust bonds of the Carnegie Co. for the aggregate principal sum of
$113,000,000, and the following stocks: $24,387,900 preferred stock, $24,149,200 com-
mon stock of American Sheet Steel Co.; $13,493,500 preferred stock, $18,912,300 com-
mon stock of American Steel Hoop Co.; $39,164,500 preferred stock, $49,595,600
common stock of American Steel & Wire Co. of New Jersey; $18,142,300 preferred
stock, $27,873,000 common stock of American Tin Plate Co.; $155,050,000 of stock of
the Carnegie Co.; $51,113,700 preferred stock, $46,124,400 common stock of the Fed-
eral Steel Co.; $26,379,100 preferred stock, $31,803,500 common stock of National
Steel Co. ; $37,894,800 preferred stock, $38,858,900 common stock of National Tube Co.
That in part performance of said contract this company do issue and deliver to ■
Messrs. J. P. Morgan & Co. or upon their order $257,000,000 5 per cent gold bonds and
$4,095,000 preferred stock, in three certificates as follows: One certificate for 1,365,000
shares'in the name of C. H. Jones, one certificate for 1,365,000 shares in the name of
K. J. Roberts, one certificate for 1,365,000 shares in the name of H. E. Whitney, and
$41 480 000 in par value of common stock in three certificates as follows: One certifi-
cate for 1 382,667 shares in the name of W. T. Stokes, one certificate for 1,382,667
shares in the name of H. S. Sill, one certificate for 1,382,667 shares in the name of
' Resolved' That in the indenture to be executed by this corporation to the United
States Trust Co. of New York there be inserted in the granting clause the following
number of shares of said several companies and the following amount of bonds of the
\)ne hundred and fifty thousand shares aggregate par value $150,000,000 capital
stock of the Carnegie Co. out of total outstanding capital stock of said company of
160,000 shares.
3752 UNITED STATES STEEL COKPOBATION.
Five hundred and eleven thousand shares par value $51,100,000 preferred stock
Federal Steel Co., the whole amount outstanding of preferred stock of said company-
being 532,609 shares.
Four hundred and sixty-one thousand shares aggregate par value $46,100,000 com-
mon stock Federal Steel Co., the whole amount of outstanding common stock being
464,843 shares.
Two hundred and sixty-three thousand shares par value $26,800,000 of preferred
stock of National Steel Co., the whole amount of outstanding preferred stock of said
company being 270,000 shares.
Three hundred and eighteen thousand shares of the aggregate par value of
$31,800,000 common stock of the National Steel Co., the whole amount of outstand-
ing common stock being 320,000 shares.
Three hundred and seventy-eight thousand shares aggregate par value of $37,800,000
preferred stock National Tube Co., the whole amount of outstanding preferred stock
of said company being 400,000 shares.
Three hundred and eighty-eight thousand shares aggregate par value $38,800,000
common stock National Tube Co., the whole amount of outstanding common stock
being 400,000 shares.
Three hundred and ninety-one thousand shares aggregate par value $38,100,000
preferred stock American Steel & Wire Co., of New Jersey, the whole amount of out-
standing preferred stock being 400,000 shares.
Four hundred and ninety-five thousand shares aggregate par value $49,500,000, the
whole amount of outstanding common stock of the American Steel & Wire Co., of New
Jersey being 500,000 shares.
One hundred and eighty-one thousand shares of the aggregate par value of
$18,100,000 preferred stock American Tin Plate Co., the whole amoimt outstanding
being 183,250 shares.
Two hundred and seventy-eight thousand shares par value $27,800,000 common
stock American Tin Plate Co., the whole amount of outstanding common stock being
280,000 shares.
One hundred and thirty-four thousand shares aggregate par value $13,400,000 pre-
ferred stock American Steel Hoop Co., the whole amount of outstanding preferred
stock being 140,000 shares.
One hundred and eighty-nine thousand shares aggregate par value $18,900,000
common stock American Steel Hoop Co., the whole amount of outstanding common
stock being 190,000 shares.
Two hundred and forty-three thousand shares aggregate par value $24,300,000 pre-
ferred stock American Sheet Steel Co., the whole amount of outstanding preferred
stock being 245,000 shares.
Two hundred and forty-one thousand shares aggregate par value $24,100,000 com-
mon stock American Sheet Steel Co., the whole amount outstanding common stock
being 245,000 shares.
Ninety-six million dollars par value collateral trust 5 per cent bonds of the Carnegie
Co. issued under its mortgage and deed o£ trust dated April 2, 1900, the United States
Trust Co., of New York as trustee, the aggregate amoimt of the bonds issued and out-
standing under said deed of trust being $160,000,000.
And that such indenture now submitted be executed, etc.
Apkil 6, 1901.
Directors' seventh meeting.
Present : W. J. Curtis, C. C. Cluff , and Charles MacVeaeh.
Shares of stock were transferred to the following gentlemen: J. P.
Morgan, John D. Rockefeller, Francis H. Peabody, Btenry H. Rggers,
Charles il. Schwab, Elbert H. Gary, Robert Bacon, Charles Steele,
Marshall Field, Norman B. Ream, P. A. B. Widner, William H.
Moore ; all received one share of preferred stock.
James H. Reed, H. C. Frick, Daniel G. Reid, E. C. Converse,
Percival Roberts, John D. Rockefeller, jr., Alfred CUfford, William
E. Dodge, Nathaniel Thayer, William Edenborn, Abram S. Hewitt,
Clement A. Griscom; all received one share of common stock.
Resignation of WiUiam J. Curtis accepted and Mr. Charles M.
Schwab elected in his place.
Resolved, That in further performance of the agreement of March 1, 1901, this cor-
poration hereby does accept from J. P. Morgan & Co., syndicate managers, the following
UNITED STATES STEEL COBPOEATION. 3753
stocks in addition to those heretofore received from them, to wit: 340,000 shares preferred
stock American Sheet Steel Co., 70,000 shares preferred stock American Steel Hoop Co.,
165,300 shares preferred stock American Steel & Wire Co. of New Jersey, 10,200 shares
preferred stock American Tin Plate Co., 50,500 shares preferred stock National Steel
Co., 90,000 shares common stock National Steel Co., 304,300 shares preferred stock
National Tube Co., 760,000 shares par value 5 per cent collateral trust bonds of the
Carnegie Co., in addition to the 113,000,000 mentioned in the letter of J. P. Morgan
& Co.. of April 3, 1901.
Corporation stock was issued for same as follows: 1,085,100 shares
par value preferred stock in three certificates — one certificate for 3,617
shares in the name of C. H. Jones; one certificate for 3,617 shares in
the name of K. J. Roberts ; one certificate for 3,671 shares in the name
of H. E. Whitney, and 112,500 shares common stock in one certificate
in the name of W. T. Stokes.
April 9, 1901.
Directors' eighth meeting.
Mr. William E. Dodge appeared and took his place as a director.
Abram S. Hewitt elected m place of Charles C. CluflF, resigned.
Mr. Charles Steele elected in place of Mr. MacVeagh, resigned.
Mr. Robert Bacon, though not in place sent word by Mr. Steele that
he accepted election as director.
Six directors elected, who besides the president and the chairman
of the finance committee- shall constitute the executive committee:
Elbert H. Gary, Daniel G. Reid, William Edenborn, E. C. Converse,
Percival Roberts, and Charles Steele nominated and elected.
Also four directors, who besides the president and chairman of the
executive committee shall constitute the finance committee: Robert
Bacon, Henry H. Rogers, Norman B. Ream, and P. A. B. Widener
nominated and elected. Mr. Bacon was made chairman.
May 7, 1901.
Directors' ninth meeting.
Present: Mr. Charles Steele et al.
Judge Gary reported that Morgan & Co., as agents of the United
States Steel Corporation, had acquired and turned over 293,886.3760
shares of the Lake Superior Consohdated Iron Mines; and 306,558
shares of the preferred stock and 306,289 shares of the common stock
of the American Bridge Co. and had also produced and caused to be
transferred to the account of the United States Steel Corporation all
of the shares of the Oliver Iron Miaing Co., and all of the shares of the
Pittsburgh Steamship Co., which were not owned by the Carnegie Co.,
being in each instance an outstanding one-sixth of the capital stock of
these two companies. ., „ ,„„. ^i . ^ * * -i i
As stated at the meetmg of April 9, 1901, the contract of April 1,
1901 then approved and adopted provided that J. P. Morgan & Co.
should receive reasonable compensation for then- services m procuring
stocks of these companies, and as substantiaUy all of the stock of each
of these companies has been so acquired and Messrs. Morgan cte Lo.
have turned over to the United States Steel Corporation the entire
contract with John D. Rockefeller for the transfer of his iron interests
in the Lake Superior district, including all of the shares of the capital
stock of the Bessemer Steamship Co., it is proper that reasonable com-
pensation to Messrs. J. P. Morgan & Co , syndicate managers which
W the terms of the contract of April 1, 1901, must be paid to them for
their services, should now be fixed, and therefore, there was offered
3754 UNITED STATES STEEL COEPOEATION.
the following resolution which was adopted by the affirmative vote
of every director present:
Resolved, That it be referred to the finance committee with power to fix and pro-
vide for such payment.
Directors' tenth meeting. No quorum present.
July 2, 1901.
Directors' eleventh meeting.
Present : Mr. Charles Steele and Mr. Robert Bacon et al.
The president reported an estimated increased value of assets,
$17,780,.335. Large sums had been collected by way of dividends
on stocks of the constituent companies after April 1, 1901, and the
corporation had received a very large sum of money as surplus at
the time of the completion of its purchases from J. P. Morgan & Co.
Eight million nine hundred and nine thousand three hundred and
eighty-six dollars set aside from surplus or net proceeds as a special
fund for the payment of dividend No. 1 on preferred stock.
Dividend of $1.75 on preferred stock, and also dividend of $1
per share on common stock (being dividend No. 1) declared.
October 1, 1901.
Directors' fourteenth meeting.
Present: Mr. Robert Bacon et al.
Presiding officer stated that the surplus net profits earned by the
several constituent companies from April 1 to September 30, 1901,
amounted to more than the sum of $36,603,927.50.
The sum of $8,942,223.50 was set aside for the payment of divi-
dend No. 2.
Dividend of $1.75 on preferred stock, and also dividend of SI per
share on common stock (being dividend No. 2) declared.
November 12, 1901.
Directors' fifteenth meeting.
Present: Mr. Charles Steele, Mr. J. Pierpont Morgan, et al.
George W. Perkins elected in place of Mr. Robert Bacon resigned
and nominated as a member of the finance committee. Mr. Perkins
was duly elected a member of the finance committee in place of Mr.
Bacon and was made chairman.
December 3, 1901.
Directors' sixteenth meeting.
Present: Mr. Charles Steele, Mr. J. P. Morgan, Mr. George W. Per-
kins, et al.
On motion, duly seconded, the following was unanimously adopted :
Whereas opportunitjr is offered to a corporation or corporations in which this company
as stockholder is interested to acqmre a lease of certain coal properties located in
the Pocahontas field for a long term of years, or in perpetuity, at a certain royalty
on certain conditions; and
Whereas it is behoved by this board to be for the pecuniary interest of this company
to secure such lease on the best terms possible; Therefore be it
Resolved, That the whole subject matter be referred with full power and discretion
to a special committee of this board consisting of Charles M. Schwab, P. A. B. Widener,
and Charles Steele.
united states steel. cokpobation. 3755
January 7, 1902.
Directors' seventeenth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins et al.
Report of special committee on Norfolk & Western Coal & Coke
Co. and the Pocahontas Coal & Coke Co. presented by Mr. Widener,
and ratified and confirmed.
Extracts from letter from J. P. Morgan & Co., dated January 2,
1902, addressed to the finance committee :
The magnitude of the transactions, the immense amount involved under the con-
tracts of March 1, 1901, and April 1, 1901, render it important, and it is our desire that
all matters between the corporation and ourselves as syndicate managers or otherwise
relating in any way to the issue of the capital stock of your corporation and to the
acquisition of the stocks of other companies should be definitely closed and settled in
such manner that no possible question concerning the same* or the amounts or profits
involved can be raised in the future. We desire, if practicable, that such a final set-
tlement, which it seems to us should be by way of mutual releases, be had before we
distribute the profits of the syndicate among its members.
The presiding oificer stated that the surplus net profits and by the
several constituent companies from April 1, 1901, to December 31,
1901, had amounted to the sum of $55,669,099.
Eight million nine hundred and thirty-one thousand two hundred
and seventy-five doUars set aside for dividend.
Dividend, of $1.75 on preferred stock, and also dividend of $1 per
share on common stock (being dividend No. 3) declared.
February 4, 1902.
Directors' eighteenth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins, et al.
March 4, 1902.
Directors' nineteenth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins, et al.
Messrs. Perkins and Steele having been excused from voting and
refraining from voting thereon.
Resolved, That the financial plan for the retirement of such part of the outstanding
preferred stock of the United States Steel Corporation which shall be surrendered by
the holders thereof in exchange for ten 60-year 5 per cent gold bonds of the corpora-
tion and the issue of such bonds for the purchase and retirement of such preferred
stock and for cash to a par amount equal to 25 per cent of the said preferred stock so
retired, as submitted this 4th day of March, 1902, be, and the same hereby is, accepted,
approved, and adopted.
It was
Resolved also, That after the making of such contract with J. P. Morgan & Co. a,nd
the desired amendment of the general corporation law of New Jersey, a special meeting
of stockholders be held, etc.
The proposed issue is $250,000,000, ten 60-year 5 per cent bonds.
April 1, 1902.
Directors' twentieth meeting. ^ ^ ^ .
Present: Mr. Charles Steele and Mr. George W. Perkms, et al.
The presiding officer stated that the surplus net profits earned
from April 1, 1901, to March 31, 1902, had amounted to more than
the sum of $73,727,150. j i ^- -^ j * »i
Dividend of $1.75 on preferred stock, and also dividend of $1 per
share on common stock (being dividend No. 6) declared.
31572— No. 53, pt. 2-12 2
3756 UNITED STATES STEEL COKPOBATION.
Report of finance committee as to preferred stock retirement
presented.
The Legislature of New Jersey has passed, and the governor of New
Jersey has approved, Mr. Reed's senate bill 137, amending the New
Jersey "Act concerning corporations.''
Sixteen directors being present and fourteen voting, the following
resolutions were adopted to retire 2,000,000 shares of preferred stock
out of bonds or proceeds of bonds out of a total issue not exceeding
$250,000,000, 50,000,000 to be offered for cash at par.
Contract made with J. P. Morgan & Co. regarding conversion of
preferred stock into bonds.
May 6, 1902.
Directors' twenty-first meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins et al.
Statement embodying certaia statistics relating to mining, manu-
facturing, and transportation of constituent companies for year end-
ing March 31, 1902, presented.
June 3, 1902.
Directors' twenty-second meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins et al.
Mr. Perkins, chairman of the finance conmiittee, submitted the
offer of J. P. Morgan & Co. relating to the issue of $250,000,000 of
bonds.
Mr. Robert Bacon was elected director in place of .William E.
Dodge, resigned.
July 1, 1902.
Directors' twenty-third meeting.
Present: Mr. George W. Perkins et al.
Dividend of $1.75 on preferred stock and also dividend of $1 per
share on common stock (being dividend No. 7) declared.
September 2, 1902.
Directors' twenty-fourth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins et al.
Action of the officers and counsel of the company approved in
vigorously opposing and defending suits against the corporation
pending in the courts of New Jersey, relating to the proposed bond
conversion.
September 22, 1902.
Directors' twenty-fifth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkins et al.
Authorization to carry out contract.
October 7, 1902.
Directors' twenty-sixth meeting.
Present: Mr. Robert Bacon et al.
Report of presiding officer made this date and referred to as follows:
The presidine officer then presented to the board a report upon the affairs of the
company and of the constituent companies, referring particularly to: The outstanding
stock of the constituent companies; the bookings and shipments; the increase in the
business of the constituent companies since the organization of this company; the
total amount expended to date on account of improvements and extensions, includ-
ing such as were authorized and under way at the time of the organization, together
UNITED STATES STEEL COBPOBATION. 3757
with the total amount required for such improvements and extensions; and explana-
tion of the transaction of the busiaess of the companies in which this corporation is
interested, showing the iadependent organization of the different companies as well
as the method by which the experience of all the companies is made available in the
busmess of each, which report upon motion duly seconded, was accepted and ordered
to be placed on file.
Dividend of $1.75 on preferred stock and also dividend of SI per
share on common stock (being dividend No. 8) declared.
November 11, 1902.
Directors' twenty-seventh meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, and Mr. Rob-
ert Bacon, et al.
December 2, 1902.
Directors' twenty-eighth meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, and Mr. Rob-
ert Bacon, et al.
January 6, 1903.
Directors' twenty-ninth meeting.
Present: Mr. Charles Steele, Mr. J. P. Morgan, Mr. George W.
Perkins, and Mr. Robert Bacon.
Contract dated December 15, 1902, with A. W. Mellon, R. B.
Mellon, W. H. Donner, William Flinn, George W. Darr, John Steven-
son, jr., and J. P. Whitla, for the purchase of all of ^he capital stock
of the Union Steel Co., in which Henry Frick has an interest, upon
terms and conditions set out in a written agreement read before the
meeting and adopted by an affirmative vote of all present, Mr. Frick
retiring, the capital stock amounting in the aggregate to $20,000,000,
includmg stock of Henry C. Frick.
It was one of the terms of said agreement, as part consideration,
that the Steel Corporation shall guarantee the payment of the prin-
cipal and interest of an issue of bonds of said Union Steel Co., amount-
ing in the aggregate to $45,000,000.
At the same meeting a memorandum agreement was approved,
dated December 24, 1902, with A. C. Bedford, representing John D.
Rockefeller, H. H. Rogers, and others, being the owners of a majority
of the securities of the Troy Steel Products Co., which company is
the owner of the plant known as the Troy steel plant, not less than
a majoritv interest to be purchased for the sum of $1,100,000, payable
either in "cash or in the proposed second-mortgage 5 per cent bonds.
The finance committee was authorized to determine the final dis-
position of the securities or the property of said Troy steel plant
and whether the same shall be vested in one of the subsidiary com-
panies, and if so, which one.
The .chairman reported that it was for the best interests of the
Carnegie Co., American Steel Co., and National Steel Co. that they
should be merged or consoHdated into one corporation ultimately to
be known as tne Carnegie Steel Co. Both the companies should be
first merged into the National Steel Co. in order to avoid any ques-
tion concerning the continuance of the right to do business in the
several States now possessed by the National Steel and not vested
in the Carnegie Co., and that after the merger shall have been con-
summated in the name of the National Steel Co., the name of the
consolidated company will be changed to the Carnegie Steel Co.
It was proposed to reduce the capital stock of the three corporations
so that tne total amount of the capital stock of the consolidated
3758 UNITED STATES STEEL CORPORATION.
company will be $63,000,000, which is exactly one-fourth of the total
capital of the three constituent companies. Dividend of $1.75 on
preferred stock and dividend of $1 on common stock (dividend No. 9)
declared.
February 3, 1903.
Directors' thirtieth meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, and Robert
Bacon, et al.
March 3, 1903.
Directors' thirty-first meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, et al.
Contract with Morgan & Co. in regard to bond issue extended for
nine months.
April 7, 1903.
Directors' thirty-second meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, et al.
Dividend $1.75 on preferred stock and dividend $1 on common
stock (being dividend No. 10) declared.
Report of income for quarter ending Mar. .31, 1903.
Dividends on stock of subsidiary companies $16, 984, 881. 00
Interest on the Carnegie Co. bonds 1, 996, 462. 50
Interest on deposits and loans and miscellaneous items 225, 925. 96
19, 217, 769. 46
:Mat 5, 1903.
Directors' thirty-third meeting.
Present: Mr. Ctarles Steele, Mr. George W. Perkins, Mr. Robert
Bacon, et al.
June 2, 1903.
Directors' thirty-fourth meeting.
Present: Mr. George W. Perkins, Mr. Robert Bacon, and Mr.
Charles Steele, et al.
Mr. Richard Trimble appointed attorney in fact to acknowledge
agreement in State of Pennsylvania with the Pennsylvania Railroad
Co. and the ConnellsvUle Central Railroad Co. relating to the con-
struction and operation of the railroad of the last-named company.
July 7, 1903.
Directors' thirty-fifth meeting.
Present: Mr. J. P. Morgan, Mr. George W. Perkins, Mr. Robert
Bacon, et al.
Dividend $1.75 on preferred stock and dividend of $1 per share on
the common stock (being dividend No. 11) declared.
Income for the quarter and six months ending June SO, 1903.
^onth of June, 1903, partly estimated.)
Quarter.
Dividends on stocks of subsidiary companies ! $20, 575, ^23. 00
Interest on the Carnegie Co. bonds > 1, 999, 183. 32
Interest on deposits and ioans and m iscellaneo us income , 285, 525. 56
22,860,531.88
Sbc months.
t.37,660.099.50
4,003,045.82
128,369.50
42,094,714.8
united states steel coepoeation. 3759
^. August 4, 1903.
Directors' thirty-sixth meeting.
Present: Mr. George W. Perkins and Mr. Charles Steele et al.
September 1, 1903.
Directors' thirty-seventh meeting.
Present: Mr. George W. Perkins and Mr. Charles Steele et al.
October 6, 1903.
Directors' thirty-eighth meeting.
Present: Mr. J. P. Morgan Mr. George W. Perkins, Mr. Robert
Bacon, Mr. Charles Steele, et al.
At this meeting and other meetings preceding, the reports and pro-
ceedings of the fiiiance committee were approved and confirmed.
Dividend of $1.75 on preferred stock, and di^adend of $0.50 per
share on common stock (being dividend No. 12) declared.
Income for quarter and nine months ending Sept. SO, 190S.
[Month of September, 1903, partly estimated.]
Quarter.
Nine montlis.
Dividends on stocks of subsidiary companies
$17,900,193.00
1,990,034.19
308,449.54
$55,460,743.50
5,996,886.67
834,573.70
Interest on the Carnegie Co. bonds
20,198,666.75
62,292,283.87
November 10,
Directors' thirty-ninth meeting.
Present : George W. Perkins, and Mr. Robert Bacon et al.
1903.
December 1, 1903.
Directors' fortieth meeting.
Present: Mr. George W. Perkins, Mr. Robert Bacon, Mr. Charles
Steele, et al.
At this meeting a letter dated November 19, 1903, to J. P. Morgan
& Co., offering to accede to the surrender of the contract regarding
further conversion of the preferred stock into 5 per cent bonds,
signed by Mr. Elbert H. Gary, chairman of the board of directors,
and the reply of J. P. Morgan & Co. were read:
New Yobk, November 19, 190S.
Hon. E. H. Gaey,
Chairman of Board of Directors,
United States Steel Corporation,
•71 Broadway, New York City.
Dear Sir: We are in receipt of your letter of this date euggesting that we eurrender
to the United States Steel Corporation our contract fdr conversion of its prefeiTcd
stock into the new ten 60-year 5 per cent sinking fund gold bonds.
We appreciate the disadvantage of continuing me conversion at the present market
prices and we are therefore willing and hereby consent to cancel and terminate said
contract beyond conversion of the amount of $150,000,000, which is now nearly com-
pleted. This, of course, is upon condition that your corporation shall hold us harm-
leas ae stated in your letter, and this correspondence shall constitute the binding agree-
ment of both parties according to its terms.
Yours, very truly, t tj th a r
J. P. Morgan & Co.
3760 UNITED STATES STEEL COBPOEATION.
By the unanimous vote of all present, the action of the finance
committee in arranging for and agreeing to the surrender of the
rights of J. P. Morgan & Co. was approved and confirmed.
January 5, 1904.
Directors' forty-first meeting.
Present: J. P. Morgan, George W. Perkins, Robert Bacon and
Charles Steele, et al.
On motion of Mr. Morgan a quarterly dividend of .Sl.7.5 on the
preferred stock was declared.
February 2, 1904.
Directors' forty-second meeting.
Present: Mr. George W. Perkins, Mr. Robert Bacon, Mr. Charles
Steele, et al.
March 1, 1904.
Directors' forty-third meeting.
Present: Mr. J. P. Morgan, Mr. Robert Bacon, Mr. Charles Steele,
et al.
Mr. Stetson, general counsel, submits letter received by Mr. Trimble
from C. H. Venner Co., Boston, dated February 13, 1904, which had
been submitted to Mr. EUhu Root for opinion as to the claim against
J. P. Morgan & Co. or the syndicate. Mr. Stetson submitted a copy
of his letter to Mr. Root, dated February 23, 1904, and stated that
Mr. Root had furnished a written opinion dated February 25, 1904,
also subnodtted to the board.
April 5, 1904.
Directors' forty-fourth meeting.
Present: Mr. J. P Morgan, ilr. George W. Perkins, Mr. Robert
Bacon, et al.
Dividend $1.75 on preferred stock declared.
Income for the year ending Mar. 31, 1904-
[Month of March partly estimated.]
Dividends on stocks of subsidiary companies $75, 071, 289. 78
Interest on the Carnegie Co. bonds 7, 988, 350. 17
Interest on deposits and loans and miscellaneous income 1, 302, 388. 72
84, 362, 028. 67
May 3, 1904.
Directors' forty-fifth meeting.
Present: Mr. Robert Bacon, Mr. Charles Steele, Mr. George W.
Perkins, et al.
Action of the finance committee and officers in making agreement,
dated April 29, 1904, Avith the Crucible Steel Co. confinned and
approved.
'The United States Steel Corporation guarantees the principal and
interest of the following bonds :
(a) Bonds of the St. Clair Steel Co. to the aggregate principal
amount of $2,250,000 issued under a mortgage dated January 1, 1901,
to the Union Trust Co., of Pittsburgh.
(&) Bonds of the St. Clair Furnace Co. for $3,000,000 under a
mortgage to the Pittsburgh Trust Co.
(c) Bonds of the Clairton Steel Co., $5,000,000 issued to the Union
Trust Co., Philadelphia, Pa.
UNITED STATES STEEL, COEPOEATION. 3761
T^- , , „ ^ . ,, . June 20, 1904.
-Directors' forty-sixth meeting.
Present: Mr. Charles Steele and Mr. George W. Perkias.
T,- . , . , , July 26, 1904.
Directors' forty-seventh meeting.
Present: Mr. Eobert Bacon, Mr. J. P. Morgan, and Mr. George W.
JrprJKin S Gu 8/1,
Dividend $1.75 on preferred stock.
Income for three months ending June SO, 1904.
Dividends on stocks of subsidiary companies $13 173 811 00
Interest on the Carnegie Co. bonds l' 999' 775] oo
Interest on deposits and loans and miscellaneous income. .."!!!!!!! ' 302| 05?! 82
15, 475, 643. 82
„. , „ . August 30, 1904.
Directors' forty-eighth meeting.
Present: Mr. Charles. Steele et al.
September 27, 1904.
Directors' forty-ninth meeting.
Present: Mr. George W. Perkins, Mr. Charles Steele, et al.
OCTOBEE 25, 1904.
Directors' fiftieth meeting.
Present: Mr. Eobert Bacon, Mr. Charles Steele, Mr. George W.
Perkins, et al.
Dividend of $1.75 on preferred stock.
Income for quarter and six months ending Sept. SO, 1904.
Quarter.
Six months.
$12,218,330.00
2,005,150.00
466,481.06
525,392,141.00
4,004,925.00
768,638.80
14,689,961.06
30,165,604.88
November 29, 1904.
Directors' fifty-first meeting.
Present: Mr. Robert Bacon, Mr. Charles Steele, Mr. George W.
Perkins, et al.
December 27, 1904.
Directors' fifty-second meeting.
Present: Mr. Eobert Bacon, Mr, Charles Steele, Mr. George W.
Perkins, et al.
January 31, 1905.
Directors' fifty-third meeting.
Present: Mr. Robert Bacon, Mr. Charles Steele, and Mr. George W.
Perkins et al. . ,-,-,,
Dividend of $1.75 on preferred stock declared.
3762
UNITED STATES STEEL COEPOKATION.
Income for quarter and nine months ending Dec. 31, 1904.
Quartiv. | Xiu^ months.
Dividends on stocks of subsidiary companies
Interest on the Carnegie Co. bond?
Interest on deposits and lou^is and raiscellajieous income.
Appreciation in valuation of sx-uriUes
513,0-17,278.40
1,'.)<:3,%2.5(I
370,>^6(..22
4d,8ijo.30
538,439,419.45
5,9(lS,N'i7.50
1.13'»,405.10
4«,SW).30
15,««,i.7;.<.S
':.■>, 1)24,. ''177.36
February 28, 1905.
Directors' fifty-fourth meeting.
Present: Robert A. Bacon and George W. Perkins et al.
March 7, 1905.
Directors' fifty-fifth meeting.
Present: Mr. Kobert Bacon and Mr. Charles Steele et al.
March 28, 1905.
Directors' fifty-sixth meeting.
Present: Mr. Charles Steele et al.
April 25, 1905.
Directors' fifty-seventh meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, et al.
Increase in capital stock of the Carnegie Steel Co. of New Jersey,
from $63,000,000 to 165,250,000.
Action in executing agreement with Pittsburgh Coal Co., dated
April 20, 1905, approved.
Dividend SI. 75 on preferred stock declared.
Income for quarter and year ending Mar. 31, 1905.
Dividends on stocks of subsidiary companies
Interest on the Carnegie Co. bonds
Interest on deposits and loans and misrellaneous income.
Appreciation in the valuation of securities
Quarter.
511,626,783.00
1,999,41.2.50
200, 748. 19
13,720,993.09
Year,
$49.9i;(;,202.46
7,998,350.00
1,340,1.53.29
46,805.30
69,351,571.05
June 6, 1905.
Du-ectors' fifty-eighth meeting.
Present: Mr. Charles Steele, George W. Perkins, Robert Bacon, et al.
The proceedings of the preceding meetings of board of directors and
finance committee approved.
June 27, 1905.
Directors' fifty-ninth meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, et al.
The proceedings of the preceding meetings of the board of directors
and finance committee approved.
united states steel coepoeation. 3763
July 25, 1905.
Directors' sixtieth meeting.
Present: Mr. Charles Steele, Mr. George W. Perkins, and Mr. Rob-
ert Bacon et al.
Dividend of $1.75 on preferred stock declared.
Income for quarter ending June SO, 1905.
Dividends on stocks of subsidiary companies $11, 637, 004. Z2
Interest on the Carnegie Co. bonds 1, 999, 462. 50-
Interest on deposits and loans, and miscellaneous income 463, 655. 01
14, 100, 121. 8S
August 29, 1905.
Directors' sixty-first meeting.
Present: George W. Perkins and Mr. Robert Bacon et al.
Proceedings of previous meetings of finance committee approved.
September 26, 1905.
Directors' sixty-second meeting.
Present: George W. Perkins, Charles Steele, J. P. Morgan, et al.
Resignation of Mr. Bacon accepted. Election of George F. Baker
in place of Mr. Bacon.
Whereas it appears advisable to reduce the capital stock of the
American Tin Plate Co. from $46,325,000 to $25,000 by the surrender
by each stockholder of his shares, etc., the Union Trust Co. as trustee
is requested to execute its proxy or power of attorney to vote upon
the shares of the American Tin Plate Co. in favor of the reduction of
the capital stock from $46,325,000 to $25,000.
October 31, 1905.
Directors' sixty-third meeting.
Present: Charles Steele et al.
Dividend of $1.75 on preferred stock declared.
By the affirmative vote of all present except Mr. H. C. Frick, who
did not vote, the following was confirmod and ratified to vni: An
agreement in writing dated January 23, 1905, with Plenry C. Frick,
for the sale to this corporation, or some subsidiary corporation of the
United States Steel Corporation, of a tract of land located at Clairton,
containing about 143 acres, which agreement has this day been
presented to this meeting; and that the corporation or some sub-
sidiar}^ corporation of the United States Steel Corporation shall
purchase the property covered by the option of the Crucible Steel
Co. to the Clairton Steel Co. under date of April 3, 1905; also various
outlying lots at Clairton and property known as the Campbell tract.
The Clairton Land Co. has agreed to purchase all of said property,
and in order to enable it to make payment therefor has determined to
issue its 4.4 per cent first mortgage gold coupon bonds guaranteed by
the United States Steel Corporation as to principal and interest, said
H. C. Frick agreeing to accept in payment said bonds secured by mort-
ga'p-e'upon all the property so purchased and has also agreed to take
from the Clairton Land Co. guaranteed as aforesaid to an additional
amount not exceeding $200,000 face value to enable the Clairton Land
Co. to make payment to that extent for the additional property covered
by the option given by the Crucible Steel Co. to the Clairton Steel Co.
and for the Campbell tract.
3764
TTNITED STATES STEEL. CORPOBATION,
The United States Steel Co. is the owner of all the capital stock of
the Clairton Steel Co., which, in turn, is the owner of all the capital
stock of the Clairton Land Co., being corporations organized and
existing under the laws of the State of Pennsylvania.
This company has agreed with H. C. Frick that if he would convey
to the Clairton Land Co. the release described in section 1 embraced
in the indenture of mortgage, and wiU lend said Clairton Land Co.
the sum of $1,200,000 in cash, this company would cause the Clairton
Land Co. to issue to him in payment therefor its first mortgage 4.4
per cent gold coupon bonds in the sum of $1,200,000 par value, pay-
able $100,000 August 1, 1915, and latter amount on the 1st day of
August each year thereafter until the whole issue shall be paid.
Income for quarter and six months ending Sept. SO, 1905.
Quarter.
Six months.
$14,813,147.14
1,999,462.50
434,504.46
$23,450,151.46
3, 998, 926. OO
Interest on deposits and loans and miscellaneous income
898,159.47
17,247,114.10
31,347,235.93
November 28, 1905.
Directors' sixty-fourth meeting.
Present: George W. Perkins et al.
Confirmation of previous meetings of directors and finance com-
mittee.
December 28, 1905.
Directors' sixty-fifth meeting.
Present: George W. Perkins, Charles Steele et al.
January 30, 1906.
Directors' sixty-sixth meeting.
Present: Charles Steele, George W. Perkins, et al.
Dividend of $1.75 on preferred stock declared.
Minutes of previous meetings of directors and finance committee
approved.
iTicomefor quarter and nine months ending Dec. SI, 1905.
Quarter.
Nine months.
Dividends on stoclis of subsidiary companies . . .
118,440,841.87
1,999,462.50
1,260,602.34
$44, 890, 993. 33
Interest on tlie Carnegie Co. bonds. ...
5,998,387.60
2,158,661.81
Interest on deposits and loans and miscellaneous income
21,700,806.71
53,048,042.04
Directors' sixty-seventh meeting.
Present: Charles Steele et al.
Directors' sixty-eighth meeting.
Present :
Annual report approved and adopted.
February 27, 1906.
March 13, 1906.
united states steel, corporation. 3765
March 27, 1906.
Directors' sixty-ninth meeting.
Present: Charles Steele et al.
Minutes of previous meetings of directors and finance committee
approved.
April 24, 1906.
Directors' seventieth meeting.
Present: George W. Perkins et al.
Dividend of $1.75 on preferred stock declared.
Income for quarter and year ending Mar. SI, 1906.
Quarter.
Year.
Dividends on stocks of subsidiary companies
$14,790,833.50
1,999,462.50
298,647.00
$59,681,876.83
Interest on the Caraegie Co. bonds
7,997,860.00
Interest on deposits and loans and miscellaneous income. . . .
2,467,308.81
17,088,993.00
70,137,036.64
May 29, 1906.
Directors' seventy-first meeting.
Present : George W. Perkins, Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
confirmed.
June 26, 1906.
Directors' seventy-second meeting.
Present: George W. Perkins et al.
Statement by president regarding proposed investigation by
Government.
July 31, 1906.
Directors' seventy-third meeting.
Present: J. P. Morgan, George W. Perkins, et al.
Dividend of $1.75 on preferred stock and dividend of $0.50 on
common stock.
Income for quarter ending June SO, 1906.
Dividends on stocks of subsidiary companies $30, 385, 027. 42
Interest on the Carnegie Co. bonds 1, 999, 462. 50
Interest on deposits and loans and miscellaneous income 1, 426, 951. 79
33, 811, 441. 71
August 28, 1906.
Directors' seventy-fourth meeting.
Present : George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
September 25, 1906.
Directors' seventy-fifth meeting.
Present: George W. Perkins, Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
approved. I
3766
united states steel coepobation.
October 30, 1906.
Directors' seventy-sixth meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele, et al.
Dividend of $1.75 on preferred stock and dividend $0.50 on common
stock.
Income for quarter and six months ending Sept. SO, 1906.
Quarter.
Six months.
Dividends on stocks of subsidiary companies S20, 3S7, 402. 14
Income on tlie Carnegie Co. bonds 1, 999, 462. SO
Interest on deposits and loans and miscellaneous income 671, 542. 42
850,772,429.56
3, 998, 025. 00
2,098,494.21
23,058,407.06
66,869,848.77
NOVEMBEK 27, 1906.
Directors' seventy-seventh meeting.
Present: George W. Perkins, Charles Steele, et al.
Minutes of previous meeting of directors and finance committee
approved.
December 18, 1906.
Directors' seventy-eighth meeting.
Present: George W. Perkins, Charles Steele et al.
Minutes of previous meeting of directors and finance committee
approved.
January 29, 1907.
Directors' seventy-ninth meeting.
Present : George W. Perkins et al.
Dividend of $1.75 on preferred stock and dividend of $0.50 on com-
mon stock declared.
Income for quarter and nine months ending Dec. SI, 1906.
Quarter.
Nine months.
$20,457,249.22
1,999,402.60
1,430,420.13
$71,229,678.78
6,998,387.60
Interest on deposits and loans and miscellaneous income . . .
3,628,914.34
23,887,131.85
80,766,980.62
February 26, 1907.
Director?' eightieth meeting.
Present: George W. Perkins and Charles Steele et al.
Resolution to exhibit on request of stockholders of record the pro-
posed guaranty by the United States Steel Corporation of the agree-
ment of the Great Western Mining Co. in the mining lease dated Jan-
uary- 2, 1907, between the Great Western Mining Co., .lessee of certain
mining, land, and iron companies in said lease named as lessors, and
Lewis W. Hill, James N. Hill, Walter J. HiU, and Edward T. Nichols
as trustees.
Recommended that the surplus fund of $21,500,000 of the earnings
for the year 1906 be set aside for capital appropriations and expendi-
tures on account of plant at Gary, Ind., and the same was ratified and
UNITED STATES STEEL COEPOEATION. 3767
approved. Also the capital expenditures by subsidiary companies
amounting to $25,232,645.15 be charged off at December 31, 1906, to
profit and loss. Also that $751,000 for capital expenditures of the
Clairton Steel Co. be charged off to the amount of $751,000.
Also from the following companies appropriations for capital ex-
penditures are to be made asfollows: Carnegie Steel Co., $1,216,357.85;
National Tube Co., $800,000; Lorain Steel Co., $500,000.
This agreement, made and entered into by and between the United States Steel
Corporation, a corporation of the State of New Jersey, party of the first part, and the
West Missabe Land Co. (Ltd.), Wright Land Co. (Ltd.), Davis Land Co. (Ltd.),
Wella Land Co. (Ltd.), Stone Land Co. (Ltd.), partnership associations organized
under the laws of the State of Michigan, and the Wabigon Iron Co., Minosin Iron Co.,
Nibiwa Iron Co., Wenona Iron Co., Minowa Iron Co., Leonard Iron Mining Co.,
Arthur Iron Mining Co., Fillmore Iron Mining Co., Harrison Iron Mining Co., Jackson
Iron Mining Co., Polk Iron Mining Co., Tyler Iron Mining Co., and Van Buren Iron
Mining Co., corporations organized under the laws of the State of Minnesota, parties
of the second part, witnesseth:
Whereas, the said parties of the second part have agreed to lease to the Great Western
Mining Co., a corporation of Minnesota, certain lands, mineral rights, and leasehold
estates for the purpose of mining and removing ore thereon, as more particularly
appears from an indenture of lease dated the 2d day of January, 1907, proposed to he
made and executed by and between the parties of the second part hereto and the
Great Western Mining Co. and Lewis W. Hill, James N. Hill, Walter J. Hill, and
Edward T. Nichols as trustees, and
Whereas, it was agreed that said lease was to be executed upon condition that the
party of the first part hereto, the United States Steel Corporation, should guarantee
the performance of each and every of the terms and conditions therein stipulated to
be performed by the Great Western Mining Co.
Now, therefore, in consideration of the sum of $1 in hand paid by the parties of the
second part to the party of the first part and in consideration of the execution of said
indenture or mining lease by the parties of the second part to said Great Western
Mining Co., the party of the first part hereby agrees that said Great Western Mining
Co., ifa successors and assigns, shall well and truly keep and perform each and every
of the terms and conditions of said mining lease to be by them performed.
In witness whereof, the party of the first part, the United States Steel Corporation,
has caused these presents to be executed m duplicate in Hoboken, in the State of
New Jersey, by its president and secretary and the seal of said corporation to be
affixed thereon this day of , A. D. 190-.
United States Steel Corporation,
By , President.
Attest:
, Secretary.
March 12, 1907.
Directors' eighty-first meeting.
Present: Charles Steele, et al.
Maech 26, 1907.
Directors' eighty-second meeting.
Present: .
Minutes of previous meetings of directors and finance committee
approved.
April 30, 1907.
Directors' eighty-third meeting.
Present: Charles Steele and George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
Dividend $1.75 on preferred stock and dividend $0.50 on common
stock, declared.
3768
UNITED STATES STEEL COEPORATION.
Incotnefor quarter and year ending Mar. 31, 1907.
Quarter.
Year.
Dividends on stocks of subsidiEuy compaDies
$16,551,104.96
1,994,462.50
567,618.59
$87,780,783.74
7,997,856.00
4,096,532.93
Tnt**rPRt on deposits and loans and misopllanpons Income
19,118,186.05
99,875,172.67
May 28, 1907.
Directors' eighty-fourth meeting.
Present: Charles Steele, George W. Perkins, et al.
Minutes of previous meetings of directors and finance committee
approved.
June 25, 1907.
Directors' eighty-fifth meeting.
Present : Charles Steele, George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
July 30, 1907.
Directors' eighty-sixth meeting.
Present: George W. Perkins, acting as chairman, et al.
Dividend $1.75 on preferred stock and dividend $0.50 on common
stock declared.
Income forr quarter ending June SO, 1907.
Dividends on stack of subsidiary companies $22, 104, 800. 72
Interest on the Carnegie Co. bonds 1, 999, 462. 50
Interest on deposits and loans and miscellaneous income 1, 769, 418. 42
25, 873, 681. 64
August 27, 1907.
Directors' eighty-seventh meeting.
Present: George W. Perkins (chairman), Charles Steele et al.
Minutes of previous meetings of directors and finance committee
approved.
September 24, 1907.
Directors' eighty-eighth meeting.
Present : Charles Steele, J. P. Morgan, and George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
October 29, 1907.
Directors' eighty-ninth meeting.
Present: Charles Steele, J. P. Morgan, George W. Perkins et al.
Dividend of $1.75 on preferred stock and dividend $0.50 on common
stock declared.
Income for qvxirter and six months ending Sept. SO, 1907.
Quarter.
Six months.
Dividends on stocks'of subsidiary companies
120,970,010.92
1,999,462.50
1,033,700.17
$43,074,811.64
3,998,925.00
2,803,118.59
Interest on the Carnegie Co. bonds
Interest on deposits and loans and miscellaneous income
24,003,173.59
49,876,855.23
UNITED STATES STEEL CORPORATION.
3769
November 6, 1907.
Directors' ninetieth meeting.
Present: Charles Steele, George W. Perkins et al.
Resolved, That the proper officers of the company be authorized to
purchase properties belonging to the Tennessee Coal, Iron & RaOroad
Co. and to acquire all or any part of the shares of the said company,
but not less than a majority of aU such shares now issued and out-
standing and any subscription certificates for shares subscribed for
but not issued, to be paid for at the par thereof, and to use in making
payments for said stock aU or any part of the $30,000,000 par value
of the bonds of the United States Steel Corporation known as ten-60-
year 5 per cent sinking fund gold bonds now held in the treasury and
being a part of the anthorized issue of $50,000,000 at the rate of
$11,904.76 par value of said bonds for each 100 shares of stock of par
value of $10,000. Officers are authorized to pay in kind instead of
converting bonds into cash they may issue bonds direct to the person
from whom the said stock shall be purchased; and if the said bonds
shall not be sufficient to make payment at the rate aforesaid, to use
any securities or money in the treasuiy of the corporation not hereto-
fore specificially appropriated or set aside.
November 26, 1907.
Directors' ninety-first meeting.
Present: Charles Steele, George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
December 31, 1907.
Directors' ninety-second meeting.
Present: Charles Steele, J. P. Morgah, George W. Perkins, et al.
Minutes of previous meetings of directors and finance committee
approved.
January 28, 1908.
Directors' nmety- third meeting.
Present : George W. Perkins et al.
Dividend of $1.75 on preferred stock and dividend of $0.50 on com-
mon stock declared.
Income for quarter and nine months ending Dec. SI, 1907.
Quarter.
Nine montlis.
$17,097,890.60
1,999,462.60
1,707,787.24
$60, 172, 702. 24
5, 998, 387. 50
4, 510, 905. 83
20,805,140.34
70,681,995.67
February 25, 1908.
Directors' ninety-fourth meeting.
Present: Charles Steele, George W. Perkins, et al.
Annual meeting.
Resolved, That capital expenditures made during the year 1907, aggregating
$33 250 000, by the subsidiary companies be charged to the profit and loss svu^jIus of
said companies; $20,500,000 set aside from income of the United States Steel Corpo-
ration for capital appropriations and expenditures on account of Gtary, Ind.
3770
united states steel coepoeation.
March 17, 1908.
Directors' ninety-fifth meeting.
Present: Charles Steele et al.
Minutes of previous meetings of directors and finance committee
approved.
March 31, 1908.
Directors' ninety-sixth meeting.
Present: George W. Perkins, Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
approved.
April 28, 1907.
Directors' ninety-seventh meeting.
Present : Charles Steele, George W. Perkins, et al.
Dividend of $1.75 on preferred stock and dividend of $0.50 on com-
mon stock declared.
Income for quarter and 12 months ending Mar. SI, 1908.
•Dividends on stoclcs of sulisidiary companies
Interest on tlae Carnegie Co. bonds
Interest on deposits and loans and miscellaneous Income.
Quarter.
$14,251,267.28
1,999,402.60
mi, 766. 26
16, 900, 495. 04
Year.
574.423,909.52
7,997,860.00
6,166,671.09
87,688,490.01
May 26, 1908.
Directors' ninety-eighth meeting.
Present: George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
June 30, 1908.
Directors' ninety-ninth meeting.
Present: Cieorge W. Perkins, acting as chairman in absence of Mr.
Gary et al.
IMinutes of previous meetings of directors and finance committee
approved.
July 28, 1908.
Directors' one-hundredth meeting.
Present: George W. Perkins, in chair, et al.
Minutes of pre-sdous meetings of directors and finance committee
approved.
Dividend of %l.l'-> on preferred stock and dividend of $0.50 on com-
mon slock declared.
Income for quarter ending June SO, 1908'.
Dividends on stocks of subsidiary companies $13, 119, 758. 10
Interest on the Carnegie < "o. bonds 1, 999, 462. 50
Inter(?st on deposits and loans and miscellaneoas income 1, 688, 159. 23
Eecovery of depreciation in book value of securities 97, 078. 04
Total 16, 904, 457. 87
united states steel corpoeation. 3771
August 25, 1908.
Directors' one hundred and first meeting.
Present:
Minutes of previous meetinigs of directors and finance committee
were approved.
September 29, 1908.
Directors' one hundred and second meeting.
Present: Charles Steele, J. P. Morgan, George W. Perkins, et al.
Minutes of previous meetings of directors and finance committee
approved.
OOTOBEE 27, 1908.
Directors' one hundred and third meeting.
Present: Charles Steele, George W. Perkins, et al.
Dividend of $1 .75 on preferred stock arid dividend, $0.50 on common
stock declared.
Income for quarter and six months ending Sept. SO, 1908.
Quarter.
Six months.
nivififtnfis nn stnnlrs nf snhsidiary p/tTTipanipj?
$14,074,648.10
1,999,462.60
783,657.78
ITS. 20
$27,194,406.20
3, 998, 925. 00
Interest on tlie Carnegie Co. bonds
Interest on deposits and loans and miscellaneous income
2,471,817.01
97,253.24
Recovery of depreciation of book values of securities . . . ,
16,857,943.58
33,762,401.45
November 24, 1908.
Directors' one hundred and fourth meeting.
Present: Charles Steele, George W. Perkins, et al.
Minutes of previous meetings of directors and finance committee
approved.
December 29, 1908.
Directors' one hundred and fifth meeting.
Present: Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
approved.
January 26, 1909.
Directors' one hundredth and sixth meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele, et al.
Dividend of $1.75 on preferred stock and dividend $0.50 on com-
mon stock declared.
Income for quarter and nine months ending Dec. SI, 1908.
Quarter.
Nine months.
113,904,663.46
1,989,462.60
2,109,260.71
400,005.03
70,776.51
$41,099,069.66
5,098,387.50
4,581,067.72
497, 258. 2T
70,776.51
Tntfirp<;t on the Gamete Co. bonds. ..T
■Rftfihvprv of denKciatioii in book value of securities
18,484,158.21
52,246,559.66
31572— No. 53, pt. 2—12 3
3772
UNITED STATES STEEL COBPOEATION.
February 23, 1909.
Directors' one hundred and seventh meeting.
Present : George W. Perkins, Charles Steele, et al.
Recommendations for charging off to reserve fund capital expen-
ditures, and additional coal, ore, and other properties acquired: The
Carnegie Steel Co., $1,747,216.59; National Tube Co., $800,000;
Lorain Steel Co., $250,000; Oliver Iron Mining Co., $250,000;
Subsidiary companies, $3,611,264.50; National Tube Works for depre-
ciation, $200,000; raised from operations of Arragon mine to be
transferred and written off as reduction of the book cost of said
mine, $200,000.
Directors' one hundred and eighth meeting.
Present :
March 16, 1909.
Minutes of previous meetings of directors and finance committee
approved.
March 30, 1909.
Directors' one hundred and ninth meeting.
Present: Charles Steel et al.
Monongahela Southern RaUroad Co., about October 2, 1905, exe-
cuted to the New York Trust Co., as trustee, a first mortgage on its
property and franchise to secure the issue of $3,000,000 first-mortgage
5 per cent 50-year gold bonds. The entire capital stock of the
Monongahela Southern Railroad Co. is owned by the Union Railroad
Co., and the entire capital stock of the said Union Railway Co. is
owned by the Carnegie Steel Co., and the entire capital stock of said
Carnegie Steel Co. is owned by the United States Steel Corporation,
thus creating a direct interest on the part of the United States Steel
Corporation m the said Monongahela Southern Railroad Co.
In order to facihtate the sale of the said bonds of the Monongahela
Southern RaUroad Co., it appears advisable that the said bonds as
issued should bear the joint guaranty of the Union Railroad Co. and
the United States Steel Corporation, and such joint guaranty has
been indorsed upon $1,200,000 of said bonds thus far issued.
And the same is ratified.
April 27, 1909.
Directors' one hundred and tenth meeting.
Present: George W. Perkins, Charles Steele, et al.
Dividend $1.75 on preferred stock, and dividend of $0.50 on the
common stock declared.
Income far quarter and year ending Mar. SI, 1909.
Quarter.
Year.
Dividends on stocks of subsidiary companies
Interest on the Carnegie Co. bonds
Interest on deposits and loans and miscellaneous Income.
Recovery of depreciation in book value of securities
Gain in sale of sectuities tosinldng fund trustees
$14,323,407.06
1,999.462.50
655,658.15
31,250.00
$55,422,476.72
7,997,850.00
5,136.725.87
528,508.27
70,776.61
16.909,777.71
19,156,337.37
united states steel coeporation. 3773
Mat 25, 1909.
Directors' one hundred and eleventh meeting.
Present: Charles Steele, George W. Perkins, J. P. Morgan, jr., et al
J. P. Morgan, jr., elected director in place of Henry H. Kogers.
Directors' one hundred and twelfth meeting.
Present: .
June 29, 1909.
Purchased from Chicago, Lake Shore & Eastern Railroad Co.
$9,000,000 yrorth of bonds and agreed to sell same with the guaranty
of the United States Steel Corporation. These bonds are also
guaranteed by the Elgin, Joliet & Eastern RaUway Co. Action of
finance committee ratified in this matter.
July 27, 1909.
Directors' one hundred and thirteenth meeting.
Present: J. P. Morgan, jr. (as chairman), J. P. Morgan, Charles
Steele, et al.
Dividend of $1.75 on preferred stock and dividend of $0.75 on
common stock declared.
Income for qiuirter ending June SO, 1909.
Dividends on stocks of subsidiary companies $13, 941, 962. 60
Interest on the Carnegie Co. bonds 1, 999, 462. 50
Premium on sale of subsidiary companies' bonds received by United
States Steel Corporation in payment of construction advances 31, 020. 00
Interest on deposits and loans and miscellaneous items 1, 429, 420. 81
17, 401, 865. 91
August 31, 1909.
Directors' one hundred and fourteenth meeting.
Present: J. P. Morgan, in chair, et al.
Minutes of previous meetings of directors and finance committee
approved.
September 28, 1909.
Directors' one hundred and fifteenth meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele et al.
Minutes of previous meetings of directors and finance committee
approved.
October 26, 1909.
Directors' one hundred and sixteenth meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele et al.
Dividend $1.75 on preferred stock and dividend $1 on common
stock declared.
Income for quarter and six months ending Sept. SO, 1909.
Quarter.
Six months.
I18.S46,9G5.60
1,999,462.50
$32,487,928.20
3,998,925.00
31,020.00
Premium in sale of subsidiary companies' bonds received by United
Interest on deposits and loans and miscellaneous income
686,020.32
2,016,441.13
21,131.448.42
38.633,314.33
3774
UNITED STATES STEEL OOBPORATION.
NOVEMBEB 30, 1909.
Directors' one hundred and seventeenth lAeetmg.
Present: J. P. Morgan, George W. Perkins, Charies Steele, et al.
Minutes of previous meetings of directors and finance conunittee
approved.
December 28, 1909.
Directors' one hundred and eighteenth meeting.
Present: J. P. Morgan, jr., George W. Perkins, Charles Steele, et al.
Minutes of previous meeting of the directors and finance committee
approved.
January 25, 1910.
Directors' one hundred and nineteenth meeting.
Present: J. P. M
Charles Steele, et al
Present: J. P. Morgan, J. P. Morgan
meetmg.
, jr., G«
eorge W. Perkins,
Dividend $1.75 on preferred stock and dividend $1 on common
stock declared.
IncoTnefor quarter and nine months ending Dec. SI, 1909.
Quarter.
Nine months.
Dividends on stocks of subsidiary companies
Interest on the Carnegie Co. bonds
Premium in sale of subsidiary companies' bonds received by United
States Steel Corporation in payment of construction advances
Interest on deposits and loans and miscellaneous items
$28, 436, 168. 93
1,999,468.60
2,616,550.63
$60,914,067.13
6,998,387.50
31,020.00
4,531,991.06
32,942,171.8
71,475,486.29
February 15, 1910.
Directors' one hundred and twentieth meeting.
Present: J. P. Morgan, jr., et al.
Changes in by-la\^*s.
March 1, 1910.
Directors' one hundred and twenty-first meeting.
Present: J. P. Morgan, jr., Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
approved.
March 15, 1910.
Directors' one hundred and twenty-second meeting.
Present: J. P. Morgan, jr., Charles Steele, et al.
Five million dollars set aside from income of 1909 for expenditures
on Gary plant, Indiana, to be charged off to the special surplus fund
in the United States Steel Corporation for capital expenmtures in
previous years for account of the Gary plant, $6,822,962.48.
Ten mnlion dollars to be set aside by the subsidiary companies for
capital expenditures.
Also $3,200,000 for guarantee funds for realization of advancea>
royalties on mining leases, etc.
Other recommendations along this line were made.
UNITED STATES STEEL COEPOBATION.
3775
March 29, 1910.
Directors' one hundred and twenty-third meeting.
Present: J. P. Morgan, jr., George W. Perkins, et al.
Minutes of previous meetings of directors and finance committee
approved.
April 26, 1910.
Directors' one hundred and twenty-fourth meeting.
Present: J. P. Morgan, jr., and George W. Perkins et al.
Dividend $1.75 on preferred stock and dividend $1.25 on common
stock declared.
Incoraefor quarter and year ending Mar. SI, 1910.
Quarter.
Year.
Dlvi(ienc|$ on stocks of subsidiary companies .-
Interest on the Carnegie Co. bonds
Frsiqiuin in sales of subsidiary companies bonds received by United
States Steel Corporation in payment ol construction advances
Interest on deposits and loans and miscellaneous items
Ia31,«?,8a8.87
1,9M,462.50
SSI, 539. 28
184,343,926.00
7,997,8S0.00
31,020.00
S,083,S36.«4
2S, 980, 840. 65
97,456,326.94
Mat 31, 1910.
Directors' one hundred and twenty-fifth meeting.
Present: J. P. Morgan, jr., Charles Steele, et al.
The minutes of previous meetings of directors and finance com-
mittee approved.
June 28, 1910.
Directors' one hundred and twenty-sixth meeting.
Present: George W. Perkins et al.
Minutes of previous meetings of directors and finance committee
approved.
July 26, 1910.
Directors' one hundred and twenty-seventh meeting.
Present; J. P. Morgan, J. P. Morgan, jr., George W. Perkins,
Charles Steele, et al. George W. Perkins in chair.
Dividend of $1.75 on preferred stock and dividend $1.25 on common
stock declared.
Income for quarter ending June SO, 1910.
Dividends and stocks of subsidiary companies $19, 244, 356. 95
Interest on the Carnegie Co. bonds. 1, 999, 462. 50
Interest on deposits and loans and miscellaneous items 2, 255, 634. 56
23, 499, 454. 01
August 30, 1910.
Directors' one hundred and twenty-eighth meeting.
Present: George W. Perkins in chair. No quorum.
SiaTBMBER 27, 1910.
Directors' one hundred and twenty-ninth meeting.
Present: George W. Perkins, Charles Steele, et al.
Minutes of previous meetings of directors and finance committee
approved.
3776 united states steel coeporation.
October 25, 1910.
Directors' one hundred and thirtieth meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele, et al.
Dividend $1.75 on preferred stock and dividend $1.25 on conunon
stock declared.
United States Trust Co. as trustee requested to execute its proxy
or power of attorney to vote upon the shares of the American Bridge
Co. in favor of the reduction of the capital stock of said company of
$62,324,600 preferred and common to $10,000,000, all in one class.
Income far quarter and six months ending Sept. SO, 1910.
Quarter.
Six months.
Dividends on stocks of subsidiary companies $19, 988, 119. 42
Interest on tlie Carnegie Co. bonds ! 1,999,462.50
Interest on deposits and loans and miscellaneous items 1 585, 903. 28
(39,232,476.37
3,999,925.50
2,841,537.84
22,573,485.20
46,072,939.21
November 29, 1910.
Directors' one hundred and thirty-first meeting.
Present: J. P. Morgan et al.
Minutes of previous meetings of directors and finance committee
approved.
December 27, 1910.
Directors' one hundred and thirty-second meeting.
Present: J. P. Morgan, J. P. Morgan, jr., George W. Perkins,
Charles Steele et al.
Minutes of previous meetings of directors and finance committee
approved.
January 31, 1911.
Directors' one hundred and thirty-third meeting.
Present: J. P. Morgan, George W. Perkins, Charles Steele et al.
Dividend $1.75 on preferred stock and dividend $1.25 on common
stock declared.
Income for quarter and nine months ending
Dec. SI, 1910.
Quarter.
Nine months.
Dividends on stocks of subsidiary companies
$18,766,140.35
1,996,462.60
3,190,031.19
$57,998,616.72
Interest on the Carnegie Co. bonds -.
6,998,387.60
6,031,569.03
Interest on deposits and loans and miscellaneous items
23,955,634.04 70,028,573.25
January 28, 1911.
Directors' one hundred and thirty-fourth meeting.
Present: J. P. Morgan, jr., George W. Perkins, Charles Steele, et al.
Minutes and action at previous directors' meetings and finance
committee approved.
UNITED STATES STEEL COEPOEATION.
3777
March 16, 1911.
Directors' meeting.
Present: J. P. Morgan, jr., et al.
Eecommended that $10,000,000 be set aside from 1910 income for
a surplus fund to cover advances made and to be made for expendi-
tures on account of Gary plant, and that $15,000,000 from the undi-
vided surplus accounts of several companies shown in the list sub-
mitted, covering equivalent amount of capital expenditures made by
said companies be set aside. Other recommendations along this line
for subsidiaries and others.
March 28, 1911.
Directors' meeting.
Present: Mr. Steele et al.
Minutes and action of previous meetings of directors and finance
committee approved.
April 25, 1911.
Directors' meeting.
Present: J. P. Morgan, jr., George W. Perkins et al.
Dividend $1.75 on preferred stock and dividend $1.25 on common
stock declared.
Income for quarter and year ending March, SI, 1911.
Quarter.
Year.
Dividends on stocks of subsidiary companies
$18,187,295.88
1,999,462.60
283,126.67
$76,185,912.60
7,997,860.00
6,314,695.70
20,469,885.05
90,498,458.30
Directors' meeting.
Present:
March 31, 1911.
Minutes and action of previous meetings of directors and finance
committee approved.
EXTRACTS FROM MINUTES OF EXECUTIVE COMMIT-
TEE, UNITED STATES STEEL CORPORATION.
MINUTES OF EXECUTIVE COMMITTEE, UNITED STATES
STEEL CORPOKATION.
(The book from which the following extracts were taken is labeled
"United States Steel Corporation, Executive Committee Minutes.")
Apeil 9, 1901.
Present: Elbert H. Gary (chairman), Schwab, Reid, Edenbom,
Converse, Rogers.
DISCUSSION OF MANIIFAOTUEING CORPORATIONS IN STATE OF
PENNSYLVANIA.
The president called attention to the threatened hostile legisla-
tion in the pending session against all capital employed in manufac-
turing in the State. He is of the opinion that unless something is
done the bill may pass ; that it may be a tax of 3 to 5 mills, and that
it will probably be on the capital rather than on the assessed
valuation.
Mr. Roberts believes that the bill wUl not go through.
Mr. Edenborn suggests that in the event of its passage it will
thereby become an annual expense, and that it had better be brought
down to a nominal price.
The president is of the opinion that it might be wise to fight it, on
the ground that the principle is bad.
After some discussion, the chairman proposed that it be tempo-
rarily passed.
PRICE OF RAILS.
On this question the president believes it to be good policy to
advance the price now, and that, in his judgment, it would attract
but little attention.
Mr. Roberts thought it might be inexpedient to do so at this early
stage of the organization of the company, because there might be
some attack on the lines that they were being advanced by this great
corporation. The chairman thinks an advance can be very well
made now. In this Mr. Converse concurred. Mr. Edenborn believes
that the price of rails can be advanced $2, and is in favor of doing
it now.
The chairman insisted that if the outsiders insisted upon the
advance this company would not oppose, and the other members of
the committee approved of this.
ADVERTISING.
In a general way the president and Mr. Converse expressed them-
selves as not in favor of advertising.
The matter was not fully decided.
3778
united states steel cobpobation. 3779
Apeil 10, 1901.
Present: Elbert H. Gary (chairman), Schwab, Reid, Edenborn,
Converse, and Roberts.
POLICY OF UNITED STATES STEEL OORPOEATION AS TO RAILEOADS,
ESPECIALLY WITH EEGAED TO FEEIGHT BATES ON EAW MATERIAL
AND PEODUCTS.
The president in introducing this question made the following
statements:
The raUroad people are to have a meeting to decide the rate that
they shall charge on ores from the Lakes to the Valley and Pittsburgh
and. that the question is, ought we to insist upon the railroads giving
us the lowest rate that we can get out of them, or what ought to be
our poUcy. The president thinks that we ought to consent to any
ore rate that they may name for the benefit of the railroads provided
they will give our companies equivalent values in the shipment on
any other product.
Mr. Converse is of the opinion that it is far better to have a high
rate, just as high as it can be, if they will ^ve us some definite and
distinct rebate or preference in some other way.
President Schwab is of the opinion that we can not get better rates
than anyone else from a certain railroad.
The chairman stated that we can not afford to take the position of
asking any raihoad directly or indirectly to discriminate in our favor.
President Schwab thinks it not unhkely that a railroad might rely
upon certain financial influences to get better rates for the material
that is to be shipped over the railroads. In this connection he makes
the comment that we ought to run this as the United States Steel
Corporation.
TJie chairman stated that he thinks we ought to pay them reason-
able rates.
Mr. Roberts beheves in working in harmony with the railroads.
Mr. Schwab stated that the rate on our own raiboad can be made
what we Hke.
The chairman thinks that we should not decide arbitrarily as to
the fixing of the rate without first taking it up with the railroad
presidents who would very likely be willing and glad to take it up
with our people to see what is fair.
President Schwab commented that he thought it unfair for rail-
roads to take the position that they should charge steel companies
more than others, because they can stand it.
It was finally agreed that President Schwab invite the railroad
people to a conference and report the result to this committee later.
Apeil 11, 1901.
Present: Gary (chairman), Schwab, Reid, Ederbom, Cpnverse, and
Roberts.
ALABAIIA STEEL * WIRE CO. OPTION.
Concerning the letter from J. W. Gates to t]xe president of this
company read to the committee, it was agreed that the president be
instructed to advise Mr. Gates that we are not ready to consider the
3780 UNITED STATES STEEL. COEPORATIOlir.
proposition and will not be ready for another two weeks. In the
meantime if Mr. Schuler would like to talk upon the subject the
president would be glad to see him.
CHANDLER ORE TO CAMBRLA STEEL CO.
The chairman called attention to the fact that Samuel Mather had
promised 75,000 tons of Chandler ore to the Cambria people and that
they now wanted 100,000 tons. The committee authorized a reply
to Mr. Mather's proposition to the effect that the additional quantity
could not be supplied.
SALES OP ORE TO JONES & LATJGHLIN.
Mining companies controlled by this company will not have for
sale during the coming year any Old Range ores, but wiU sell to
Jonos & LaughUn 250,000 to 300,000 tons of Missabe ore for the ensu-
ing year and will, if desired, enter into an arrangement for a further
supply of Missabe ore at a fair price.
Samuel Mather had promised 75,000 tons of Chandler ore to the
Cambria people and they now want 100,000 tons; the additional
quantity was refused.
The president stated that the schedule of prices for ore, pig and
coke should be fixed here for all furnaces.
FOREIGN BUSINESS.
The president is to obtain information of the constituent com-
panies regarding the manner in which they conduct foreign business,
and that this information is to give particularly a list or the repre-
sentatives at the different points and warehouses maintained, if any,
and the expense of representations, etc.
April 12, 1901.
Present: Elbert H. Gary, chairman.
April 20, 1901.
Present: Elbert H. Gary, chairman.
Discussion as to the advantages or otherwise of the combination
or understanding with the Shelby people. The Shelby National
Tube Co. is the only maker of seamless tubing.
STEEL CONTRACT BETWEEN SHELBY TUBE CO. AND CARNEGIE CO.
The president stated that the Carnegie Steel Co. had a contract
with the Shelby Tube Co. to supply it with steel, that it was very
favorable to the Carnegie Co., inasmuch as the latter could so arrange
the price of .steel that it would be rather difficult for the Shelby Co.
to continue in business.
The chairman expressed the opinion that he would a great deal
rather have that company in business under our control than to
absorb them.
The committee instructed the president to take up the matter
with Mr. Miller without committing himself.
UNITED STATES STEEL CORPORATION. 3781
Subsidiary companies will not bid against each other if they are
buying pig iron at the same time.
Discussion of labor question.
(At the request of Mr. BoUing of counsel for the company, no
extract was taken from the executive committee minutes or the dis-
cussions relating to labor questions.)
April 20, 1901.
Present : Elbert H. Gary, Schwab, Converse, Reid, Roberts, Eden-
born.
SHELBY TUBE EXPERIMENTS.
The president reports advices from Mr. Miller of the Shelby Tube
Co. of the entire success of certain experiments instituted at the
request of Mr. Schwab with the view or making a tube to compete
with the lap-welded tube for pipe. Under the arrangement, Mr.
Schwab was to pay $25,000 for the experimental costs for which he
would be entitled to all information as to the process.
The discussion then took the direction of the advantages or other-
wise of a combination or understanding with the Shelby people.
Mr. Converse stated that the Shelby and the National Tube Cos. are
the only makers of seamless tubing.
The chairman suggested that inasmuch as we are entitled to this
information regarding the new process, the president might say we
would like to have it; that we would be glad to carefully consider
the purchase of their company, it being clearly understood in ad-
vance that we are committed to no proposition, but for the purpose
of knowing whether he would care to recommend the purchase the
president desired very full information as to the company and its
business.
It was finally recommended by the committee that the president
of this company advise a representative of the National Tube Co.,
through its president, and one from the Carnegie Co., to examine the
plant, look tne whole matter over, and make a report to the president
of this company.
TIN SMELTER OF AMERICAN TIN PLATE CO. AT PENANG, STRAITS SET-
TLEMENT, NEAR SINGAPORE.
The president reports that the American Tin Plate Co. has hereto-
fore purchased a site for about $20,000 at Penang, Straits Settlement,
near Singapore, East Indies, for improvement oy the erection of a
smelter to refine tin metal; and also stated that the smelter will
probably cost $50,000 to erect. The president recommends that the
work already commenced on this improvement be continued; in this
Mr. Reid concurs.
On motion the president was instructed to advise the president of
the American Tin Plate Co. to proceed with the work.
3782 UNITED STATES STEEL. COEPOEATION.
I Afril 22, 1901.
Present : Gary (chairman) , Schwab, Edenbom, Roberts, Converse.
OPTION OF ALABAMA WIRE CO.
The question of taking this property was discussed very tlu)r-
oughly. Mr. Edenborn was in favor of taking the property at a
low price and closing up the plant.
The chairman was impressed with the property if it could be bought
cheap, because of its strategic position. He is opposed to it if the price
is high, and would not favor its purchase under any consideration if
it were intended to close up the plant. In this last proposition Mr.
Converse agrees with the chairman.
The president opposed its purchase on the question of poUey, even
though we could get it at a low price.
It was finally recommended that the president decline the propo-
sition.
PLAT RATES ON ORE CARRIED ON THE LAKES.
The president is of opinion that the rate should not be a very low
one; that is, between 80 and 90 cents is fair, he thinks. The chairman
expressed his opinion briefly. It was recommended that the presi-
dent take up the matter and make the rate somewhere between 80
and 90 cents, as can best be arranged.
April 23, 1901.
Present: Gary (chairman), Schwab, Edenbom, Roberts, Converse.
ALABAMA WIRE CO. OPTION.
This question was brought up again from the previous meeting.
After some discussion on the lines or the prior meeting, it was voted
that the president of this company decline the proposition at the
price named.
April 24, 1901.
Present: Gary (chairman), Schwab, Roberts, Edenbom, Ried, Con-
verse.
SHELBY TUBE CO.
The president reported that he had had an interview with Mr.
Miller of the Shelby Tube Co., and expects to receive from him a
statement covering the last six months showing shipments of ore and
amount of orders on the books. A similar statement will be fur-
nished to Mr. Schwab by the National Tube Co.
It was suggested that some arrangement could be made with
Miller, with the view of maintaining prices, and that some prices now
could be advanced by both companies.
PENNSYLVANIA TAXATION OF CORPORATIONS.
The president reported that no action had been taken on this matter.
He had been informed that some of the legislators were in favor of our
acceding to a nominal tax, but he expected to learn something definite-
in a few days.
UNITED STATES STEEL CORPORATION. 3783
CONFERENCE OF RAILROAD PRESIDENTS WITH PRESIDENT SCHWAB,
APRIL 23, 1901.
The president reported that he has had a conference with the rail-
foad presidents of the different lines handUng our products with ref-
erence to the rates on the carriage of ore, eoke, and finished steel
articles. The result was that they are going to appoint three persons
who are thoroughly familiar with all these items of transportation,
and they are to meet three appointed by ourselves. This committee
wiU take up this matter and adVise some plan which will be submitted
to us and the railroad people as the basis on which we are to consider
this question of rates.
This plan was approved by the committee. It was suggested by
the chairman that Mr. Keefe of the American Steel & Wire Co., Mr.
Banks of the Elgin, Joliet & Eastern Kailway, and a representative
from the Carnegie Co. compose this committee. This was approved.
The president suggests that this committee select all the data possible
from every direction, and that they should consult the traffic men of
the different companies.
April 25, 1901.
Present: Gary, Schwab, Edenborn, Converse, Roberts.
NEVILLE ISLAND PtJRCHASED FOE AMERICAN STEEL & WIRE CO. —
GRANITE CITY WIRE WORKS.
The Von Camp proposition, referred to in telegram from Alfred
Clifford to Max Pam, dated April 24, 1901, relating to purchase of
judgment, redemption, etc., is referred to Mr. Edenborn with power.
April 29, 1901.
Present: Gary (chairman), et al.
INFORMATION TO INVESTORS' PUBLICATIONS.
The pubUshers of Poor's Manual have asked the National Tube Co.
for its balance sheet. The chairman and the president are opposed to
the policy of giving any data through any channel but this executive
committee. As a general proposition, the chairman suggests that we
ttiight furnish figures, etc., to responsible and reputable people, provid-
ing it be harmless to our business, and points out that certam informa-
tion should be given for the guidance of investors who may be inter-
ested in any of the bonds of our subsidiary companies.
Mr. Edenborn and Mr. Converse are firmly of the opinion that we
should withhold anj data that might encourage the promotion of
coTmpetitive enterprises. It was the general opinion of the members
of tnis committee that the subsidiary companies should report
through the president of this company aU inquiries and that no
information be given unless first passed trpon by this committee.
After some further discussion it was moved by Mr. Converse that the
matter be referred to the finance committee. This resolution was
carried.
3784 UNITED STATES STEEL COEPORATION.
SHELBY TUBE CO.
Mr. Converse submits certain estimates of output and capacity of
the Shelby Tube Co. for the information of the president of this cor-
S oration when he takes up certain matters with Mr. Miller and Mr.
[eame, and referred to in the previous meetings of this conmiittee.
Mr. Converse commented that it might be expedient to let the matter
drift for a while.
MINNESOTA IRON CO.
Election of officers approved by the executive committee.
April 30, 1901.
Present: Gary (chairman), Schwab, Edenborn, Roberts, Converse.
SHELBY TUBE CO.
The president reported in a general way the result of an interview
had with Mr. MiUer, of the Shelby Tube Co. Mr. Schwab believes it
is not at present feasible to make any division of the business of the
National and Shelby Tube Cos.
Upon the question of the acquisition of the property of that com-
pany the president stated that the stock outstanding amounted to
$8,000,000 of common and $5,000,000 preferred stock. He also gave
figures showing the business transacted by the Shelby Co. He is
impressed with its earning capacity, and believes that under our con-
trol it would net about 50 per cent. He rather thinks that the whole
property could be purchased for about $3,000,000. Mr. Converse
stated that it is the only real live competitor the National Tube Co.
has, and that between the two compames all the patents for seamless
tubing manufacture are owned.
The president suggested that if the purchase was made it might
be done by giving stock of the United States Steel Corporation in
exchange for stock of the Shelby Co. and he would propose:
One share of preferred stock for two shares preferred Shelby stock.
One share common stock for five shares common Shelby stock.
Mr. Converse estimated that the properties of the Shelby Tube Co.
had cost about $4,000,000 and thinks very well of such a purchase
if it can be made at a price named by the president and effected
through exchanged stock.
The chairman suggested that the president of this company take
up the matter again with the Shelby people simply on the basis of
an intermediary, with the intimation that the president does not
know what can be done, but will see, etc.
Mr. Converse stated that Mr. Schwab can effect such a deal; it is a
very good one and that this committee should then recommend it to
the finance committee.
The president stated that he would have another interview with
Mr. Miller on the lines of the above and would report later.
May 1, 1901.
Present: Gary, chairman.
Labor question discussed.
united states steel ooeporation, 3785
May 2, 1901.
Present: Gary (chairman), Charles Steele.
Labor question discussed.
COKE FROM OLIVEB IN EXCHANGE FOE BILLETS.
The president reported that Oliver would like to have this company
take his coke in exchange for our billets. He beheves it would be
good pohcy for us to recommend that this be done; it would remove
Oliver as a competitor of ours in the selling of coke, and we could
furnish him with billets in exchange; that some sliding scale could
be arranged; and that a long-term contract should be made.
It was moved and seconded that the president be authorized to
take up this matter on both lines.
May 6, 1901.
Present: Gary (chairman), Schwab, Roberts, Edenbom, Reid,
Converse.
COKE PEOPEETIES TO BE COMBINED.
The president is of the opinion that it would be advisable to com-
bine all of our coke companies, as far as may be practicable, into one
company in about the same manner as the steamship companies are
to be merged. The president informed the committee that he would
confer with Mr. Stetson and a plan would be formulated and presented
to the committee. The committee is of the opinion that as a general
proposition it would approve of such a combination, but action on
the question is deferred until the plan of consohdation is presented
to this committee.
The chairman called attention to the fact that if the consohdation
were effected the relative values of the different elements should be
fixed and recognized. In this the members of the committee
concurred.
COMBINATION OF OUTSIDE BEIDGE COMPANIES.
The president stated that a Mr. Conger had a scheme by which it
was proposed to combine everything outside of the American Bridge
Co. into one company. The president believed that such a combi-
nation of the different elements would work out well with the Ameri-
can Bridge Co., inasmuch as there would then be but one interest
to deal with instead of a number, with the consequent conflicting
interests as to poUcy, etc. The question was not fully discussed and
laid over for a future meeting.
May 9, 1901.
Present: Gary (chairman), Schwab, Roberts, Edenborn, Reid,
Converse.
SPECIAL PRICES FOR MATERIAL TO THE AMEEICAN CAN CO.
Special prices not voted for American Can Co., although it was
recognized it might be that because of the large amount bought by
the American Can Co. that special prices should be voted if the
American Can Co. could not succeed.
3786 united states steel coeporation.
Mat 13, 1901.
Present: Gary (chairman), Schwab, Eoberts, Edenborn, Reid,
Converse.
PENNSTX,VANIA TAXATION.
The president reports that there are some pending bills in_ the legis-
lature that he beUeves in looking into. After some discussion it was
voted that this whole matter and anything kindred to it be left with
the president and chairman to take up with the finance committee
with power.
AMERICAN BRIDGE CO. AGREEMENT IN RE PLANT TO BE BUILT IN
CANADA.
The American Bridge Co., it was stated by Mr. Roberts, had pre-
viously made an agreement to subscribe toward the installation of a
plant to be built by friendly interests at Walkerville, Canada, and
upon motion it was voted that the American Bridge Co. should carry
out any such agreement.
AMERICAN BRIDGE CO. OF NEW JERSEY AND OF NEW YORK.
For the information of the committee, Mr. Roberts stated that the
American Bridge Co. of New Jersey did not go into the different
States and there erect structures, owing to the taxation that would
result by reason of doing business in different States. The company
makes its goods and delivers them on the cars at the works. The
American Bridge Co. of New York was capitalized in this State for
$100,000 and does all the erecting. It purchases its material from
the American Bridge Co. of New Jersey, and it is merely a construc-
tion company.
COMBINATION OF OUTSIDE BRIDGE COMPANIES.
Mr. Roberts reported that he also has received a letter from Mr.
Conger on the plan previously referred to this committee. Upon the
recommendation of Mr. Roberts it was voted that no answer be
made to Mr. Conger. The president inquired if there would be any
advantages to the American Bridge Co. if the proposed consohdation
were effected.
Mr. Roberts stated that as the small concerns are now they do not
amount to much in a competitive way, but is afraid they would
become factors if consoHdated.
ADVERTISING.
On the subject of advertising Mr. Edenborn stated that he does
not approve of general advertising. It was the general opinion of
the members of this committee that except in certain technical and
trade papers, or where some special thing was required to be brought
before the public, no advertising should be done. It was voted that
the president convey this suggestion to the presidents of the sub-
sidiary companies.
May 23, 1901.
Present: Gary (chairman), Charles Steele.
UNITED STATES STEEL. COKPOBATION. 3787
Mat 28, 1901, 2 p. m.
Present: Gary (chairman), Schwab, Edenborn, Roberts, Converse.
Discussion of labor question.
FOKEIGN TRADE.
It was stated that the idea being that our export trade is not for
disposing of surplus stock from time to time and thereby making the
business to a certain extent a temporary one, but that it is the inten-
tion to supply at all times as large a market as our facilities will
permit.
SHARON STEEL CO.
The president reported a proposition from this company looking
toward making some working arrangements with reference to the
wire business.
Mr. Converse does not favor any plan of guaranteeing tonnage on
percentage.
The president stated that he was a Httle undecided about the
whole thing, but if he were obliged to make up his mind now he
might favor some arrangement for a short period. Mr,. Edenbom
does not approve.
The chairman expressed the opinion that we should go very slowly in
making trade alliances with new concerns; that if we did business on
competitive lines for awhile we wiU probably be able to make better
arrangements later if desirable. Mr. Converse points out that it
would tend to introduce the goods of the company into the market.
Upon motion of Mr. Converse it was voted that the president
advise the parties that it is not a policy of this company now to look
with favor upon any trade alliances at the present time with people
now thoroughly established.
June 17, 1901.
Present: Gary (chairman), Schwab, Edenborn, Converse, Eoberts,
Steele, Reid.
DIRECTORS AND OFFICERS OF SUBSIDIARY COMPANIES TO BE STOCK-
HOLDERS.
The chairman made the following suggestion:
The Federal Steel Co.'s plan of control was as follows: The Federal
Steel Co. asked the directors of all its constituent companies to adopt
by-laws which are substantially the same with reference to two propo-
sitions: The by-laws of this company are now so drawn that the
Federal Steel Co. can fill any position hi any director or of any officer
at any time that it is desired by providing in the by-laws:
First. That each director or officer in order to be eligible must be a
stockholder.
Second. That upon his ceasing to be a stockholder his office is
vacated.
As each director or officer holds one share of stock indorsed in
blank, it is only necessary to transfer that stock to someone else to
remove him from office. This provides for absolute control of every
position with every company.
31572— No. 53, pt. 2—12 i
3788 UNITED STATES STEEL COKPOKATION.
The above was considered by members of the cormnittee as a very
good suggestion, but the proposition was not formally acted upon,
and no instructions were directed to be carried out.
Discussion of labor question.
June 19, 1901,
Present: Gary (chairman), Schwab, Edenborn, Converse, Roberts,
Steele, Reid.
CONTRIBUTION TO ARMORY TO BE BUILT IN ALLEGHENY COUNTY.
The president presented to the meeting a communication dated
June 3, 1901, from Mr. George T. Oliver, of Pittsburgh, in which a plea
is made for a donation toward the expense of building the new armory
for the National Guard of Allegheny County. This appeared to have
been submitted previously to some of our subsidiary coinpanies, but
nothing has been paid. This is a new subscription list, which the
United States Steel Corporation is asked to head. Upon motion by
Mr. Converse, duly seconded, it was voted that the president of this
company institute inquiries as to what has already been subscribed
by outside companies, and by our subsidiary companies, and further
as a part of .the resolution that if anything be done at aU in the matter
it should be through the subsidiary companies and not by this corpo-
ration.
June 21, 1901.
Present: Gary (chairman), Schwab, Reid, Converse, Edenborn,
Steele.
NAGAUNEE MINE, ISHPEMING, MICH.
This mine is located on the Marquette Range and is at present
being worked by the American Steel Wire Co. under a lease.
The president presented to the committee a recommendation from
Vice President Gayley concerning the matter of purchase of the
one-third of the fee of this mine for the sum of $500,000. Mr. Gayley
recommends the purchase and stated that the one-third interest is
held by some heirs who will sell their interest for the above sum. The
preliminary negotiations were had with a Mr. Mitchell, one of the heirs.
The other two-thirds interest is owned by Messrs. Maas and Lorn-
storf. Mr. Gayley believes that this ore is just as good in quaUty as
the celebrated Norril — ^finest of Old Range; that it would cost about
86 or 90 cents to mine; that there are 5,000,000 tons in the property;
that it is the best piece of property on Marquette Range he knows of;
that the purchase of it would be absolute — no lease no contract oi
any kind; that the other two-thirds interest would work in harmony.
The chairman stated that the standard Old Range ore is very scarce,
and it is something we need; that this ore is about up to the base as
established by the association, and therefore of a very high grade and
does not think we should lose the opportunity of buying this ore.
The chairman further stated that in maJong this statement he is assum-
ing that money is scarce, and that we ought not to buy any other
properties that he can do without at the present time; he does not
think, however, that we should let any opportunity go by to obtain
what can be considered the very highest grade of iron ores whenever
UNITED STATES STEEL COEPOEATION. 3789
and wherever, we can buy them at a reasonable price; that we should
in some way furnish money to secure ores of that kind if we are to
continue in the ascendency; that we can do so, in his judgment, only
by continuing to buy and therefore continuing to be the owners of the
very best raw products.
The chairman wished it understood that he dishked spending any
money for any properties at the present time, and would be opposed
to buying plants or anything that can (not) be duplicated, but he is in
favor of buying properties at the very best that can not be dupli-
cated—referring particularly to the raw products.
The chairman is in favor of recommending to the finance committee
that this purchase should be made.
In further explanation the chairman pointed out that the Old
Range ores are scarce in comparison with other ores; that while we
have a very large quantity of Old Range, yet the quantity is small
in comparison with our other ores; that we can use the Old Range
ores with other ores, but that Messabe ores can not be used without
some of the Old Range.
Mr. Gayley stated that we now have about 70 per cent of the
known Old Range ores, including Bessemer and non-Bessemer, and
that of the Bessemer Old Range we control about 90 per cent.
It was finally moved by Mr. Reid and duly seconded by Mr. Eden-
born that this committee recommend to the finance committee that
the purchase of the interest offered be made for the sum of $500,000.
This was carried by the unanimous vote of the committee.
June 25, 1901.
Present: Gary (chairman), Schwab, Roberts, Edenborn, Converse,
Reid.
Report of Mr. Lynch concerning consumption of coal per month, etc.
STRAITS TRADING CO.
Mr. Reid stated that he wished to call attention to the fact that
if any proposition be received from this company at any time he had
received an intimation from Mr. MacLean, of Phelps, Dodge & Co.,
that the latter concern had some control over the Straits Co., and
he believed it would be well to confer with them if anything turned up.
PITTSBURGH ARMORY FUND.
The president brought up the question of subscription to the fund
of the erection of this armory, and gave some information respecting
the contributors. The intention of the promoters of this scheme is
to have this corporation head the list. There was some discussion
of amount to be contributed. Mr. Roberts believed that our sub-
scription should not exceed that of the Pennsylvania Railroad Co.,
which is given as $15,000. The president then informed the com-
mittee that it had been intimated to him that that amount will be
increased. The president beheved that the constituent companies
should give 12^ per cent, or $50,000, conditioned on the total amount
being raised. The chairman thought that $40,000 would be a very
liberal amount. The president stated that it was probably a ques-
tion for the finance committee, but the chairman believed that it is a
3790 UNITED STATES STEEL COEPORATION.
matter of operation, although it involves a question of money; that
it is hard to define the line according to the by-laws, but in any
event the finance committee would ask the executive committee
to first pass upon it.
It was finally moved by Mr. Reid that our recommendation to the
finance committee be that the United States Steel Corporation, or
the constituent companies, donate $50,000 to this armory. Mr.
Eoberts offered an amendment that we first ascertain definitely
for what amount the Pennsylvania Eailroad Co. subscribed, or
would eventually subscribe; that our recommendation be deferred
until we had the information. This was seconded by Mr. Converse.
The president said it ought to be borne in mind that the Pennsylvania
Raiboad Co. was probably anxious to have us declare our policy
first. Mr. Converse finally offered an amendment to the amendment
to the effect that we recommend $40,000 without any inquiry at all.
This was seconded by Mr. Edenborn, put to vote, and carried.
Discussion of labor question.
June 26, 1901.
Present: Gary (chairman), Schwab, Steele, Edenborn, Reid,
Converse.
AMERICAN TIN PLATE CO. APPKOPEIATION FOE OPERATIONS IN EAST
INDIES.
By request of the executive committee, Mr. Morris Lancaster
was present to give some information respecting the proposition
contained in letter dated June 20, 1901, addressed to President
Schwab by the first vice president, W. T. Graham, a copy of which
was sent to each member of the committee. Mr. Graham was also
present. Mr. Lancaster has recently returned from Penane, Straits
Settlement, where he was located in the interests of the American
Tin Plate Co.
The following information was given to the committee :
The American Tin Plate Co. is an annual purchaser of about
8,000 tons of pig tin, and it is now paying 28| cents per pound. At
this figure, on the basis of ordinary price of labor, there is a profit
of 14 cents per pound. The price of pig tin is fixed by mampula-
tion, it is said, and the Straits Trading Co. is the principal factor
in regulating that. The American Tin Plate Co. people believe
if they were permitted to expend about $105,000 in addition to what
they have already laid out in the purchase of land it would be suffi-
cient to enable them to estabhsh a smelting plant and go into the
business of producing pig tin. In addition to the sum named, there
would be required about $250,000 to $300,000 in capital to run the
plant they propose to erect. They believe that the company wiU
then be in position to earn more money by this expenditure than it
could in any other way, and further, the company would have a
voice in the matter of fixing the price of tin, and as the price of ore
follows the price of tin, it would be able to secure its ore accordingly.
It is also intimated that should such a plant be established, it is
quite probable that it would eventually mean the securing control
of the Straits Trading Co., and thus obtain control of the market.
UNITED STATES STEEL COEPOEATION. 3791
It is stated that the erection of the smelter is not a proposition to
make any money by its operation save indirectly by taing the price
of tin and consequently the price of ore. It was brought out that
they are in the dark as to what supply of ore is in the ground; the
ore is in the deposits hke manganese ore. There is no way to secure
control of the supply of ore; it is all mined by Chinamen, and con-
siderable capital is invested by them. Some Chinamen do smelting.
After some discussion, it was finally moved by Mr. Steele, duly
seconded, and voted that we recommend that the American Tin Plate
Co. be permitted to purchase one or the other of the two sites, but only
one, and that further consideration of the construction of the smelter
be postponed.
Jtily 1, 1901.
Present : Gary (chairman) , Schwab, Converse, Eoberts, Edenborn,
Steele.
MANAGEMENT OF BUSINESS OF UNITED STATES STEEL CORPORATION.
The president having presented to each member of the committee a
copy of the proposed plan of operation, in which the duties of the corps
of assistants were defined, asked for opinions of the committee or
criticisms.
After some discussion, the chairman finally stated that the question
before the meeting was as follows :
Under the by-laws as they now exist, do you think the president of
the company should really have the affairs of the subsidiary com-
panies in charge for advice, if jpu wiU, by and through his assistants
rather than through this committee ?
The chairman stated that it looked to him as if the president has as
his cabinet four men instead of this committee, and the chairman
simply raises the question whether our by-laws contemplate that mode
of procedure, and that as far as he is personally concerned he wishes
to know what we are expected to do.
The president stated that he would not take up ordinary matters of
detail with the committee because it was impracticable. The chair-
man believed that the head of the financial house had a different
understanding as to how the affairs should be managed, to which the
president repfied that it was impracticable.
Mr. Roberts does not believe it should become a personal issue dis-
tinctly between the president and the committee; that rather it is the
committee calling attention to the fact that under the by-laws it felt
responsible for certain things, and that inasmuch as the president
states the business of the company can not be operated under the
by-laws, he believed it should be brought to the attention of the board
of directors. The president said that he thought the chairman should
take it up with Mr. Morgan.
The chairman stated that what is reaUy wanted is success, peace,
and. harmony.
Discussion of labor question.
3792 united states steel cokpokation.
July 2, 1901.
Present: Gary (chairman), Schwab, Edenborn, Roberts, Raid,
Converse.
MANAGEMENT OF BUSINESS OF UNITED STATES STEEL CORPORATION.
Mr. Roberts presented the following resolution in reference to the
Eroposed plan of operation of business of the company, as suggested
y the president at the previous meeting of the committee :
Whereas among other things the by-la wb of this corporation provide as follows (Art. II,
sec. 1): "The business and the property of the company shall be managed and con-
trolled by the board of directors," and a^ain (Art. Ill, sec. 2): "During the interval
between the meetings of the board of directors the executive committee shall pos-
sess and may exercise all the power of the board of directors in the management
and direction of tiie manufacturing, mining, and transportation operations of the
company, and of all other business and affairs (except any matters hereinafter
assigned to the finance committee) in such manner as the executive committee
shall deem best for the interests of the company, in all cases in which specific
directions shall not have been given by the board of directors. During the intervals
between the meetings of the executive committee the chairman thereof shall possess
and may exercise such of the power vested in the executive committee as from
time to time may be conferred upon him by resolution of the board of directors."
And again (Art. IV, sec. 2): "Power and duties of the president: Subject to the
executive committee, he shall have general charge of the business of the company,
including manufacturing, mining, and transportation; he may sign and execute all
authorized bonds, contracts, or other obligations in the name of the company; and
when the treasurer or an assistant treasurer may sign all certificates of the shares in
the capital stock of the company. He shall do and perform such other duties as
from time to time may be assigned to him by the board of directors."
And whereas the president has stated that in his judgment the business of the company
can not be successfully conducted by complying with the requirements of the by-laws
as above stated, and that therefore it is necessary for him to disregard the same;
Therefore,
Resolved, That it is the sense of this committee that unless the by-laws be amended
by due and regular action as therein provided for, the president be and is hereby re-
quested to furnish this committee with full reports of the operations of the company
and submit for their information and decision all matters requiring supervision as set
forth in the by-laws, or that a full statement of the differences of opinion now existing
between the several members of the executive committee upon this subject be sub-
mitted to the board of directors for such action as they may deem advisable.
In explanation, Mr. Roberts stated that this matter has been troub-
ling him quite a little; that the board of directors may have expected
different duties from the committee from what we have been per-
forming; that he is not expressing his views as to whether it is best
to operate by a committee or directly by the chief executive officer,
but he thinks the by-laws, as they now read, mean only one thing,
and that if we are going to continue business under the by-laws we
must do it as a committee, and that the question is. Shall they be
changed ?
The president stated that he thought so. The president informed
the committee that he wanted to continue his own organization and
wants every man to feel that there is a head ; in other words, he wants
to conduct this organization as similar organizations have been con-
ducted in the past.
The chairman then stated that he had no objection to the passage
of this resolution if it is desired, but he thinks that we should avoid
the appearance even of personality, because it is not a personal ques-
tion; tnat we should always avoid getting into a discussion before
the board of directors that might lead us into trouble ; that in this he
is only talking in a general way and merely for the suggestion of
UNITED STATES STEEL COBPOEATION. 3793
principles that we all agreed upon. He thinks that Mr. Morgan, the
responsible head of the financial house that had the responsibihty of
bringing out this concern, should have the opportunity of being con-
sulted as a member of the board of directors or otherwise. The chair-
man dislikes to have anything done that wUl get us into trouble, and
particularly at this time.
The motion received the second of Mr. Converse, and the resolution
was approved by vote.
Discussion of labor question.
Jtjly 2, 1901.
Present: Gary (chairman), Schwab, Edenborn, Converse, Reid,
Robert Bacon, Roberts.
PRICE LIST FOR MATERIAL EXCHANGED BETWEEN CONSTITUENT
COMPANIES.
The president presented to the committee for its approval a list
of prices proposed for the third quarter of the year 1901 to govern the
exchange or materials between the constituent compames of the
corporation.
Mr. Converse, Mr. Edenborn, and Mr. Reid thought they were satis-
factory.
Discussion of labor question.
July 3, 1901.
Present: Gary (chairman) et al.
COAL AND COKE PROPERTY CONSOLIDATION.
Mr. Lynch has seemed to feel that with the values that were finally
determiried upon in regard to coke and coal properties that he had a
larger burden than he would be able to carry, and that he will not be
able to make a showing that wUl be satisfactory to him as manager
of the coke and coal property.
July 6, 1901.
Present: Gary (chairman) et al.
July 8, 1901.
Present: Gary (chairman).
Discussion of labor question.
July 8, 1901—2.30 p. m.
Present: Gary (chairman), Charles Steele.
Discussion of labor question.
July 11, 1901.
Present: Gary (chairman), Schwab, Roberts, Converse, Reid.
CHAIRMAN TO REPRESENT EXECUTIVE COMMITTEE DURING INTERVALS
BETWEEN MEETINGS.
Mr. Roberts stated that he understood that the finance committee
had delegated its powers to its chairman during the intervals between
meetings, and thinks it would be advisable for this committee to take
some similar action, and therefore presents the following resolution:
Whereas it is provided in the by;law8 (Art. Ill, sec. 2): "During the intervals between
the meetir^ of the board of directors the executive conunittee shall possess and may
exercise all the powers of the board of directors in the management and direction
3794 UNITED STATES STEEL, CORPORATION.
of the manufacturing, mining, and transportation operations of the company and of
all other businees and affairs (except the matters hereinafter assigned to the finance
committee) in such manner as the executive committee shall deem best for the
interests of the company in all cases in which specific directions shall not have been
given by the board of directors. During the intervals between the meetings of the
executive committee the chairman thereof shall possess and may exercise such of
the powers vested in the executive committee as from time to time may be con-
ferred upon him by the resolution of the board of directors or of the executive com-
mittee.
And whereas it now fears that the several members of this committee will be separated
in the iromediate future and be beyond call: Therefore, in accordance with file said
by-laws, it is
Resolved, That the chairman of this committee be, and is hereby, vested with all
the powers of said committee during the intervals between its meetings until such
time as this resolution shall be repealed.
The chairman observed that he had no objection to the resolution
provided it was agreeable to the president, who then stated it was
perfectly satisfactory to him.
Upon motion the resolution was duly accepted.
JUI.Y 12, 1901.
Present: Gary (chairman).
Discussion of labor question.
August 12, 1901.
Present: Gary (chairman), Charles Steele.
September 25, 1901.
Present: Gary (chairman).
October 22, 1901.
Present: Gary (chairman), Charles Steele.
October 23, 1901 — 3 p. m.
Present: Gary (chairman).
November 15, 1901.
Present: Gary (chairman).
November 16, 1901.
Present: Gary (chairman).
November 18, 1901.
Present: Gary (chairman), Schwab, Edenbom, Converse, Eoberts.
STRAITS TRADING CO. PROPOSITION.
The president reported that it might be well to look into the matter
of the Straits Trading Co. This subject was brought up before.
(See pages 81 and 83 of these minutes; page 81 meeting June 25,
1901 ; page 83 meeting June 26, 1901.)
The president sees considerable advantage in being able to control
the output, and therefore the price, of tin, and for that reason rather
thinks well of the proposition to secure control of the Straits Trad-
ing Co.
The chairman feels that we have so many things necessary to be
done during the next five years to put our plants in such condition
that each ^yill be symmetrical in itself and with all of the others, all
of which will require so much money that he feels he had better not
indorse this proposition.
On motion it was voted that the matter be left open.
UNITED STATES STEEL COEPOEATION. 3795
TROT IRON & STEEL CO.
On the question as to whether or not the ownership of this property-
would be advantageous to the United States Steel Corporation, the
president stated that he does not believe it is of any value to us.
Mr. Converse said that the Carnegie people can deliver material on
the wharf of the Troy company not only cheaper than it can be made
there, but at a good profit.
On motion, duly seconded, it was unanimously voted that the presi-
dent be requested to decline to entertain the proposition concerning
the Troy property.
(Note. — See aa to later acquisition meeting of — .)
PAINT PRODUCTION, ACID UTILIZATION, ETC., AT WORCESTER WORKS
OF THE AMERICAN STEEL & WIRE CO.
Statement by Edenborn.
PLANTS IN GREAT BRITAIN.
Discussion as to buying steel plants in Great Britain and the
advisability of acquiriog them.
December 3, 1901.
Present: Gary, chairman.
AMERICAN CAN CO.
Placed an order for plates to be delivered in the first quarter of
1902 and asked a concession on the prevailing price. After some
discussion, it was recommended that the price be $3.75 per box.
December 7, 1901.
Present : Gary (chairman) , Charles Steele.
Pocahontas coal lands leased, details considered.
December 17, 1901.
Present: Schwab (chairman). Converse, Keid, Edenborn, Roberts.
EXPENDITURE RECOMMENDATIONS OF EXECUTIVE COMMITTEE.
The president stated that in future the finance committee when
passing upon recommendations of the executive committee for appro-
priations for improvements and new construction would only con-
sider whether the necessary funds are available and would not
attempt to go into the advisability of the proposed expenditure —
leaving that question entirely in the hands of the executive com-
mittee.
January 21, 1902.
Present: Gary (chairman), Roberts, Edenborn, Converse, Gayley.
WICKS ORE PROPERTY, CASCADE RANGE.
A letter dated January 14, 1902, from Mr. Nelson P. Hulst, vice
president of the Oliver Iron Mining Co., to Mr. James Gayley, first
vice president, was read. This letter concerned the Wicks Ore
3796 UNITED STATES STEEL COEPORATION.
Property on the Cascade Kange, near Ishpeming, which can be
bought for $200,000, on the basis of 25 per cent in cash and the bal-
ance in one or two years. Mr. Gayley stated that this is a hard-ore
proposition; that it is the kind of ore we are more or less short of,
and such as we need for furnace mixture; that 80 per cent of our
ore reserve is in the Messabe Range, and we must nave these low-
grade ores, and that there are 640 acres in the tract and that we have
about 160 acres outside, making it a very big location to begin with;
that he favors the acquisition of this property.
The chairman stated that he would not be at all surprised if the
purchase price could be cut a little and the terms made satisfactory;
and that on the facts presented he would be inclined to recommend ifc.
Mr. Roberts moved that the proposition be recommended to the
finance committee, and upon motion duly seconded it was voted
accordingly.
January 28, 1902.
Present: Gary (chairman), Roberts, Reid, Edenborn, Converse,
Steele, Gayley.
AMERICAN TIN PLATE CO. OPERATION IN THE EAST INDIES.
In answer to an inquiry by Mr. D. G. Reid respecting the result of
Mr. Gayley's conferences with Mr. Lancaster, Mr. Gayley stated that
the general conclusion seemed to be that it would not be wise to con-
sider the building of a smelter in the Straits Settlements at the present
time; that it would be better practice probably to bring over the ore
and smelt it at tide water and thus obtain the benefits of aU the
modern western metallurgical economies rather than pursue the old
expensive process now in vogue at Singapore. Mr. Gayley stated
that then ore could be obtained from Bolivia and other places, and
suggested that we had better dispose of the land now owned at
Penang by the American Tin Plate Co.
The chairman stated that he did not think the property there had
better be sold and that he does not believe the time has arrived to do
anything further.
February 4, 1902.
Present: Gary (chairman), Roberts, Reid, Edenborn, Converse,
Gayley.
BABCOCK MATTER.
The chairman called the committee's attention to this question,
and upon motion duly seconded it was voted that the whole of said
matter be referred to the committee with power.
February 11, 1902.
Present: Steele (chairman), Roberts, Reid, Edenborn, Converse,
Gayley.
New continuous ingot heating furnace proposed to be charged off
to "repairs."
February 18, 1902.
Present: Gary (chairman), Charles Steele.
Visit from Mr. Perkins and Mr. Steele to president. He stated
that they spent three hours with him and he took them over each
department.
united states steel corporation. 3797
February 25, 1902.
Present: Gary (chairman), Schwab, Roberts, Reid, Edenborn.
President stated general average of costs was lowest corporation
ever had.
Railroads urging corporation to make deliveries of rails and rail
materials, etc., and chairman called attention to the fact that occa-
sionally billets have to be imported to complete a contract or to
affect the price at some particular locality.
March 4, 1902.
Present: Gary (chairman), Schwab, Perkins, Steele, Roberts, Con-
verse, Edenborn, Reid.
purchase op plant of DILLWORTH-PORTER CO.
Mr. Schwab stated that he wished to lay before the committee a
question that had been a troublesome one in relation to a firm in
Pittsburgh, known as the Dillworth-Porter Co. This company manu-
factures spikes, bolts, and tie plates in competition with our works
in Chicago and other works. That there are only two firms, our-
selves and the Dillworth-Porter Co. who make any considerable
quantity of this material. That in the past we have been selling
these spikes and bolts with the rails. That usually contracts with
the railroad companies are made this way. We have been turning
over the spikes and bolts to the Dillworth-Porter Co. because they
purchase all their steel from the United States Steel Corporation.
That a condition has arisen which makes it impossible for the Dill-
worth-Porter Co. to run their works except at a loss with bUlets we
are furnishing them at the present price, and that we must either
furnish them steel at some price to enable them to run their works
or they will be compelled to contract for the steel elsewhere or make
it themselves. That Mr. Dillworth had recently called on him and
stated that one of two things must be done: Either a slicUng scale
arrangement must be made with the Dillworth-Porter Co. by which
the United States Steel Corporation will sell them steel dependent
upon the price the Dillworth-Porter Co. receives for their materials,
or they must provide themselves from other sources. This firm has
been taking 65,000 tons of steel from us the past three years and we
have made over $1,000,000 profit from their contracts. Mr. Schwab
submitted the question whether it would be desirable to make an
offer or consider an offer for the purchase of these works, and the
committee was unanimous in conclusion against the purchase.
Wrangle over revision of by-laws.
Wrangle over powers and scope of the executive committee.
Resignation of Mr. Roberts.
Mr. Steele stated that he was responsible for the way the committee
attempted to act under the by-laws in the past.
Present: Gary (chairman), Charles Steele.
Present: Gary (chairman), Charles Steele.
March 18, 1902.
March 25, 1902.
3798 unitkd states steel c0ep0kati02sr.
April 1, 1902.
Present: Gary (chairman), Charles Steele.
April 8, 1902.
Present: Schwab (chairman), George W. Perkins.
April 15, 1902.
Present: Schwab (chairman), George W. Perkins, Edenborn, Reid.
LETTER TO STOCKHOLDERS.
The chairman presented to the meeting the form of a circular letter
proposed to be sent to the stockholders of the corporation regarding
the plan for the conversion of preferred stock into second-mortgage
bonds; and upon motion by Mr. Reid, duly seconded by Mr. Eden-
born, it was — -
Resolved, That this committee does hereby approve of the circular letter as read.
April 17, 1902.
Present: Schwab (chairman), Perkins, Edenborn, Reid.
PRESSED STEEL CAR CO. — GEORGE A. FULLER CO.
The president stated that the George A. Fuller Co. is a very large
user of structural steel and one of our good customers and that they
are very prosperous; that one-third of the pressed-steel plates used
in the market is taken by the Pressed Steel Car Co.; that there is a
movement on foot in Philadelphia to purchase the control of these
two companies, but he does not know whether it will be effective;
that the control is sought by eastern plate makers, and that if carried
out it would be very unfortunate for the United States Steel Corpora-
tion. The president intimated that probably it might be well to see
what can be done toward acquiring the controlling interest in those
companies. Mr. Reid thought that it would be very wise for the
United States Steel Corporation to stand in line and get as much
finished work as possible. It was finally decided to allow the matter
to remain in abeyance for the present.
AMERICAN CAN CO. — GLUCOSE CO.
The president stated that the glucose company were large users of
tin cans and were thinking of making them themselves; that this
would mean a loss of a very large tin plate business to our tin plate
company; that the can company has received a proposition with
reference to prices, and the can company would like to enter into
some sort of a sliding scale agreement with the American Tin Plate Co.
for this one order. The president stated that the following proposi-
tion was involved: The can company agrees to take our auditor's
account of the cost of tin plate, providing we give them half of the
profit we may have above the cost; they also would give us half of
the profit they make above the cost. The president is not willing to
UNITED STATES STEEL, CORPORATION. 3799
do this as a general thing, but thinks it might be good pohcy for this
one order, and that it is to our interest to tie every customer to the
American Can Co. that we can. It is provided that if the can com-
pany makes a loss we do not help to make that up. The president
stated that such an arrangement will not get us into trouble with
anyone else, and that he thinks it is a splendid arrangement. It is
a five-year contract.
On motion, duly seconded, it was voted that this be approved.
April 22, 1902.
Present: Schwab (chairman), George W. Perkins.
April 29, 1902.
Present: Gary (chairman), Schwab, Steele, Reid.
MATTER OF CONSOLIDATION.
In answer to Mr. Steele's inquiry as to how we are getting on with
this matter, the president stated that we will have to combine all
our manufacturing companies into one absolute company, and that
would eUmihate a lot of officers who are drawing large salaries and
not earning them, and it would enable us to give the salaries to the
men in charge of the actual operations who did earn them. It would
also enable us to establish a basis of profit sharing when we did that.
The chairman stated that the press of business connected with the
annual meeting and the bond question has caused some delaj^ in
this matter. The president stated that he would like to submit a
plan showing how he beUeves this property can best be managed as
one company. Mr. Steele thought that this is the most important
thing we have to do.
SOUTHWEST WATER CO.
Sale of one-half interest to Oliver & Snyder Steel Co. approved.
Mat 6, 1902.
Present: Gary (chairman), Charles Steele.
ORE LANDS.
I think we have been a little too considerative in taking lands;
some we have refused have doubled in value since. I think we ought
to buy Mr. Hill's ores.
The Chairman. We certainly have everything on the Vermilion.
We bought everything on Messabe that is good, that is best, that is
first-class, with perhaps one exception which we could not get and
with the exception of beyond Hibbing; we can not get there. Mr.
Hill is not there now. The property which has been bought is low-
grade ore and we have this class of ore, certainly 60,000,000 to
70,000,000, not yet opened. We can afford to let our competitors
get the low-grade ores if we have thebetter ones.
3800 UNITED STATES STEEL COEPOEATION.
May 20, 1902.
Present: Gary (Chairman), Schwab, Eeid, Steele.
Discussion in reference to Hill ore lands.
SHELBY TUBE CO.
In regard to this company, they are shovsing improvement each
month. There are some httle changes yet to be made. I think it
should run over 100,000 every month, besides protecting the National
Tube. Mr. Hearne and Mr. Schiller report very favorably on that
proposition.
PKICE OF KAILS.
The chairman said he would like to see the price of rails fixed for
1903.
ORE LAND PUKOHASES ON THE RANGES.
The President. WhUe there, I asked our people to go over the
matter of our refusals of ore properties presented on short notice
and see if the man around the corner, so to speak, took over what-
ever we refused, and I find in most instances he did.t Every ore
property we have refused has been taken by others. The question
IS, what ought our policy to be in this regard 1 Most of our people
are working very energetically for a new supply of ore, and the fact
that we keep searching and then do not take, puts us in a very
awkward light. For example, we are showing our interest by look-
ing out for them and then manifesting indifference by turning them
down. I think we should stop explorations and wait until they come
to us. Mr. Hill is a serious situation up there, and they are taking
these properties and then in turn losing them to our competitors,
and he is using all his efforts to have them take up these properties.
Mr. Steele. I have a sort of feeling that we are in an atmosphere
of high prices all around. I think, however, when hard times come
these little fellows can't carry these ore properties.
The Chairman. Have we turned down any first-class properties
adjacent to our roads?
The President. No; when you say first-class propositions. How-
ever, it is pretty hard to say how any property may develop.
The Chairman. If our competitors have bought property of a low-
grade ore where the analj^sis was not over 50 per cent in iron and high
in sulphur, I think we can afford to let them have them at these high
prices. I told Dermg that I thought they made a mistake in their
purchase, for the reason that they are tied up to Hill and had a low
grade of ore. I don't think that we would be attracted by such a
proposition, even if it were on our railroad. We have at least
60,000,000 tons of that grade of ore, which is not worked at all. It
is true the properties have advanced, but I believe you will ^et these
low-grade ores cheaper in the next four or five years. Upon Mr.
Gayley's recommendation we bought one ore property which was a
little low in iron, but its physical construction was such that it was
first-class for mixture. I thiijk that was a good purchase. But
when you take an ore that is soft, fine, low in iron, high in phosphorus,
and removed from our track, then I don't believe it is good judgment
UNITED STATES STEEL CORPORATION. 3801
to buy it now, because I think you can buy it much cheaper ia the
next four or five years.
The President. I believe we must make some arrangement with
Hill. We have depended upon his assurances that he would let us
have the properties, and we are now giving him a million tons of
ore every year down his road. I thiiik Mr. HOI ought to give us
the leases of aU his properties, subject to a contract with him bj
which we would guarantee him a certain minimum of traffic over his
road. All he wanted was the traffic. He does not want any royalty.
The Chairman. I think you will have to pay a small royalty .y.
Mr. Steele. I will take it up with him. .^-,
The Chairman. It may be that we have neglected him and I , will
teU you why I think so. WhUe you (meaning the president) were
in Europe, Mr. HiU's son sent me a letter on the subject and I imme-
diately sent the papers to Mr. Gayley to take up and dispose of that
and get HiU down here and discuss the question here and see what
would be a fair arrangement.
The President. It was deferred until my return^ when I immedi-
ately got hold of Mr. James HiU and he said that- the properties were
held tor the United States Steel Corporation.
The Chairman. I received later a letter from Mr. Hill, in which
he said that he had never been seen on the question.
The President. A friend of mine has shown me a telegram offering
the leasing of the Hill properties to him, and there is some misun-
derstanding.
Mat 27, 1902.
Present: Gary (chairman), George W. Perkins, Charles Steele.
June 3, 1902.
Present: Gary (chairman), Perkins, Schwab, Edenborn, Steele.
June 3, 1902.
Present: Gary (chairman), Perkins, Schwab, Edenborn, Steele.
AMERICAN STEEL & WIRE CO. — ^PURCHASE OP GRISWOLD WIRE CO.
The president read to the meeting a letter from President Palmer,
dated May 19, 1902, strongly recommending the purchase of the plant
of the Griswold Wire Co. at Braddock, Pa. Mr. Palmer stated
that that coinpany owns and controls a patent for the manufacture
of dimension or exact-length bale ties, used pruicipally for baling hay.
The concern is capitalized at $75,000 and Mr. Pahner thinks it can
be secured for about that sum.
Mr. Edenborn. I know about the proposition and they are the only
ones making ties in opposition to our company.
The Chairman. I think we can get it for less. In talking with
Mr. Jennings, of Messrs. Stetson, Jennings & Russell, about the
Griswold property offered to us last March, this Braddock property
was part of the proposition and Mr. Edenborn and I were in favor
of buying the whole property of the Griswolds, including this prop-
erty, and in the course of the negotiations, it seems to me that we
talked about this present plant as being worth about $50,000.
Mr. Edenborn. I would not like to see one of the other concerns
in Pittsburgh buy it.
3802 UNITED STATES STEEL COEPORATION.
The President. If we feel it is right, let us authorize them to
give not more than $75,000 and then buy it on the best terms possible.
The Chaikman. Do you not think we can do better through Mr. Jen-
nings here ? Frank Baackes seemed to think he could get an option.
Mr. Edenboen. I think I can get some one to get an option. I
would fayor authorizing them to buy it at $75,000, or as much better
as they can.
Upon motion of Mr. Steele, it was duly voted that the purchase of
the plant at $75,000, or better, be recommended.
June 24, 1902.
Present: Steele (chairman), Schwab, Perkins, Edenborn, Reid.
AMERICAN PROTECTIVE TARIEE LEAGUE SUBSCRIPTION.
The president presented the matter of subscription to this league,
and upon motion, duly seconded, it was voted that we subscribe
thereto to the extent of $3,000.
July 1, 1902.
Present: Gary (chairman), George W. Perkins.
July 8.
Present: Gary (chairman), Schwab, Perkins, Edenborn, Converse,
•Gayley, Reid.
Monongahela River Coal & Coke Co., acquiring land of for railroad
agreement to mine coal referred to president.
Edgar Zinc Co. discussed. Interview with Mr. Guggenheim.
July 15, 1902.
Present: Elbert H. Gary (chairman), Charles M. Schwab, Wilham
Edenborn, E. C. Converse, D. G. Reid.
STANDARD OIL CO.
The president brought up the question of tubes for the Standard
Oil Co., stating that that company desired to contract with us for
tubes, with the right to buy the steel anywhere they should see fit;
that the matter has been discussed with President Hearne and- others,
and the conclusion reached that any contract with the oil company
should provide for the purchase from us of plates as well as tubes;
that Mr. Rogers had stated that his company would construct its own
pipe nulls if arrangements satisfactory to Ms company could not be
made with us; that the proposition had been made to the oil com-
pany by the steel company that they take plates for a period at 5 per
cent below the prevauing prices, and that if the prices should break
in the interim, the matter of the market price should be left to an
arbitrator.
Mr. Converse stated that the tonnage of the oil company would be
likely to run from 125,000 to 140,000 tons a year.
The present position of the steel company in this matter was there-
■upon approved.
united states steel corporation. 3803
July 16, 1902.
Present: Gary (chairman,), Schwab, Edenborn, Converse, Reid.
m'kEESPOET plant, NATIONAL TUBE CO.
Completion of purchase of McKeesport property referred to W. B.
Schiller with power.
July 22, 1902.
Present: Gary (chairman), George W. Perkins.
July 29, 1902.
Present: Gary (chairman), Perkins, Converse, Steele, Reid, Gayley.
DAY ORE PROPERTY, MESABI RANGE.
Mr. James Gayley, first vice president, presented a letter addressed
by him to President Schwab, under date of the 29 th instant, giving
him details of the Day ore property on the Mesabi Range, and
requesting authorization to purchase the one-half interest owned by
Messrs. Howe & Washburn for the sum' of $200,000.
Upon motion, duly seconded, it was voted that the matter be
referred to Mr. Gayley, with instructions to secure the property, if
possible, at $200,000 or less, and on as favorable terms as to time of
payment and rate of interest as possible.
August 5, 1902.
Present: Gary (chairman), Perkins, Reid, Gayley, Converse, Steele.
DULUTH & IRON RANGE RAILROAD CO. DULUTH, MISSABE & NORTH-
ERN RAILWAY CO.
Mr. James Gayley, vice president, presented to the meeting a copy
of his letter to President Schwab, under date of July 28, 1902, con-
cerning an expenditure of $605,000 for 50 flat cars, 25 box cars, and
500 steel ore cars for the Duluth & Iron Range Railroad Co.; also for
the expenditure of $440,000 for 400 steel ore cars for the Duluth,
Missabe & Northern Railway Co.
Upon motion, duly seconded, it was voted that these expenditures
be recommended to the finance committee.
OLIVER IRON MINING CO. — CHAPIN MINE.
Mr. Gayley also presented the matter of an expenditure of $92,580
for flume replacement and new dam and for deepening wheel pits at
hydraulic plant, Quinnesec Falls, Mich.
On motion, duly seconded, it was voted that this appropriation be
reeommended to the finance committee.
PURCHASE OF ORE PROPERTY NEAR CHAPIN MINE.
Mr. Gayley presented for recommendation the matter of purchase
of fifteen thirty-sixths interest in the fee of the very desirable piece of
ore property located near the Chapin mine at a total cost of $46,000.
This is the Millie mine.
On motion, duly seconded, it was voted that this purchase be rec-
ommended to the finance committee.
31572— No. 53, pt. 2—12 5
3804 united states steel corporation.
August 12, 1902.
Present: Gary (chairman), Charles Steele.
August 19, 1902.
Present: Gary (chairman), George W. Perkins, Charles Steele.
September 9, 1902.
Present: Gary (chairman), Perkins, Steele, Gayley, Keid, Eden-
born.
cost reports.
In compUance with the request made by Mr. Steele, Mr. Gayley
said that he would have reports of costs from Mr. Walker submitted ,
monthly so far as possible.
Note.— William C. Walker is assistant to president, and his address is 71 Broadway,
New York City.
No meeting on September 14, 1902.
September 16, 1902.
Present: Gary (chairman), Perkins, Eeid, Steele, Converse, Eden-
born.
NATIONAL tube CO., SALES POLICY.
The chairman reported that at the directors' meeting of the
National Tube Co. to-day the subject of meeting competition on
merchant pipe came up for consideration. The facts are: That the
company is manufacturing and selling about 50 per cent of the total
trade in that line and the competition is very close; that now the
tube company is maintaining prices while its competitors have been
underselling about $5 or $6 per ton and are fighting one another
more or less now; that the representatives of the selling department
of the tube company have an arrangement with the jobbing trade
whereby they get the first and last caU. The question is whether
the tube company should maintain prices and let the other people
take the business, or whether the tube company should take care of
its business, although it will cost them more to do it.
September 23, 1902.
Present: Gary (chairman), Perkins, Reid, Steele, Converse, Dick-
son.
NATIONAL tube CO., SALES DEPARTMENT.
Mr. Converse reported that the tube business is getting along very
nicely with the exception of merchant pipe; that they nave a stock
of 40,000 tons on hand — ^more than they should have at this time' of
the year; that it should be about 25,000 tons less; and that up to the
last three weeks they have not been after the outside competitors,
but at the last meeting of the tube company a plan of action was
formulated in such a way as to give the tube company a caU on the
business. They could let it go if necessary, or take the business if
they wanted to do so. Outside of that their position for this time
of 3'ear is very good.
UNITED STATES STEED COKPOKATION. 3805
PRICE OF RAILS.
The chairman reported to the committee a letter from President
Callaway of the American Locomotive Co., commenting on the good
effect upon the trade of the steady maintenance of reasonable prices
for plates sold by our constituent companies.
PIG-IRON SUPPLY,
Mr. Dickson made a brief statement of the difficulties of obtaining
deliveries upon outside purchases of pig iron, explaining that the
outside furnaces were closely allied to plants not within the United
States Steel organization, and that until the needs of these plants
were supplied our constituent companies could not obtain deliveries.
Mr. Dickson further stated that very soon we will be unable to
depend upon most of the people from whom the outside purchases
are made, and in view of this he believes that we ought to build
another furnace at Youngstown, Ohio, and two at Lorain, Ohio.
October 2, 1902.
Present: Gary (chairman), Charles Steele.
October 14, 1902.
Present: Gary (chairman), Perkins, Edenborn, Steele, Eeid, Gay-
ley.
COKE SITUATION.
In regard to the coke situation, Mr. Gayley stated in substance
about as follows : It has been published that we intend to discon-
tinue the sale of coke in the future to outsiders. In consequence
some coke people have called upon him during the past week to make
inquiries. Our maximum capacity is 33,500 tons per day. Our
requirements are 32,500 tons, leaving 1,000 tons as surplus. We
purchase under a billet contract from Oliver 1,400 tons per day,
making a surplus of 2,400 tons, providing we can get it all supplied.
We have been buying coke for 10 or 15 years and nave always been
large purchasers. We sell this coke at a profit of 5 cents or 10 cents
per ton, and have done this merely to regulate the price. That situ-
ation is not so important to us at the present time. I do not think
we are in a position to sell coke to outsiders excepting the small
surplus which we sell to the people from whom we are getting iron,
and we would only want to sell them on some sort of obligation in
order to insure our getting the iron. Mr. Lynch tells me that on
the 1st of April we may get some coke from Pocahontas. After
making the inquiry at the meeting as to what the policy of the com-
pany ought to DC as to the selling of coke, Mr. Gayley stated that if
we can not sell anyhow he does not think it advisable to go into the
market and purchase it for sale to others, and particularly when we
are depending upon the railroads for the transportation, and might
be placed in a position to be sued for breach of contract. We have
been purchasing this year in the neighborhood of 2,500 tons a day
outsiae and prior to that we did purchase about 5,000. In answer
to Mr. Steele's inquiry as to what effect Pocahontas will have on the
situation, Mr. Galey answered that it will put us in a position to sell
3806 UNITED STATES STEEL COEPOEATION.
coke, if we wish to do so, but as a primary proposition he would not
sell it unless on a conversion deal whereby we get iron in exchange;
that we are not selHng a pound of ore outside of filling our ore con-
tracts, with the exception of some silicious ore.
The chairman stated in this connection that we have been supplying
some outside customers (with coke) right along, year after year, and
they are very solicitous about their future suppHes. Mr. Gayley has
been importuned by these people and so have I ; they want to be the
favored few, and think we ought to take care of them. It is a ques-
tion that ought to be very carefully considered. For instance, you
have a thousand tons surplus, and if you can accommodate, without
any injury to your own business, one or two of these people who are
influential, it might be wise to do so.
Mr. Gayley stated that the price at which coke was fixed, after
canvassing the situation, was $3 a ton on the cars at the ovens; that
we have been selling it at $2.20, and it could be sold at a higher price,
but it was thought best not to try and get the maxjmum price. In
answer to an inquiry from the chairman as to who fixed the price,
Mr. Gayley stated that a meeting of the presidents occurred the other
day.
Mr. Gayley stated further that new people are going in to buy some
of the coal lands in the Connellsville region, and therefore he wishes
to call attention to the proposition contained in a communication
addressed to him by President Lynch, of the H. C. Frick Coke Co.,
under date of April'lS, 1902.
October 21, 1902.
Present: Gary (chairman), Steele, Edenborn, Converse, Keid,
Gayley.
DITLUTH, MISSABE & NORTHERN RAILWAY.
Mr. Gajrley presented the blanks requesting an appropriation of
$23,302.93 for furnishing a complete connection with the Troy mine
belonging to Pickands, Mather & Co., requiring 2 miles of track,
including the siding at the mine. This is to be used in handling the
output at that mine (to be charged to construction).
On motion duly seconded it was voted that this be recommended
to the finance committee.
DULUTH, MISSABE & TSTORTHERN RAILWAY CO.
Mr. Gayley presented the blanks requesting an appropriation of
$33,343.84 to lay 10 mUes of new 60-pound steel rails and fittings for
putting a new track at the Spruce mine, Burt mine. Day property,
miscellaneous log and mine spurs, and the OHver St. Clair spur, the
latter blanks to the Oliver & Snyder Co. Mr. Gayley stated that a
part of this is necessary to increase our tonnage of ore for next year,
and that we will receive enough tonnage to pay for our putting in
the other tracks to those properties which do not belong to us. The
appropriation blanks state that it is to be charged to "material" of
chief engineer until used on various construction and operating
accounts.
Upon motion duly seconded it was voted that this be recommended
to the finance committee.
UNITED STATES STEEL COEPORATION. 3807
UNION RAILROAD CO.
Mr. Gayley presented a letter from President Corey, dated the 17th
instant, concerning an expenditure of $550,000 for 500 steel cars,
together with appropriation blanks stating that they were necessary
to provide for service between the works of the Carnegie Co. and for
the increased shipments over the Bessemer & Lake Erie Kailroad.
Mr. Gayley stated that some time ago (meeting of June 24, ,) Mr.
Corey and Judge Reed put in a request for 1,000 cars which was cut
down to 500 ; that our vessels are being delayed because they can not
get enough to haul the ore away; that we ara building more furnaces
at the Edgar Thompson plants, which will be ready in January and
February, and another furnace at Carrie, and we must have more
facilities. These cars -will cost $100 each, and Judge Eeed states that
he could finance them the same as he did the other 500 cars which
were bought for the Union Railroad. The cars could be delivered in
April.
The chairman stated, however, that he believed if you undertook to
have aU the cars and all the engines that are necessary to do the
business at the present time it is only a question of time when we will
have more cars than we can use. To this Mr. Gayley replied that no
matter how hard times may be we can always divert business to that
road and keep it full.
Upon motion duly seconded it was voted that the expenditure be
recommended to the finance committee.
October 26, 1902.
Present: Gary (chairman.)
November 11, 1902.
Present: Gary (chairman), Perkins, Steele, Edenborn, Converse,
Reid, Gayley.
DULUTH & IRON RANGE RAILROAD CO.
Mr. Gayley presented a letter addressed to him by President
House, under date of October 28, regarding an expenditure of $29,930
for the purchase of 800 tons of 80-pound second-quality rails and
splice bars, to be charged to construction. The appropriation blanks
state that these are to be used partly for logging business this winter,
and also that there might be a small supply on hand for emergencies.
Mr. House stated that if shipped before the close of navigation there
would be a saving on the freight.
On motion, duly seconded, it was voted that this expenditure be
recommended to the finance committee.
AMERICAN BRIDGE CO. — WALKER PLANT.
Mr. Gayley presented two communications addressed to him by
President Major, under date of 23d and 30th ultimo, concerning the
proposed sale of the property at the Walker plant at Homestead, Pa.,
for not less than $90,000.
Upon motion, duly seconded, it was voted that this sale be recom-
mended to the finance committee.
3808 UNITED STATES STEEL CORPORATION.
PEICE REDUCTION ON FINISHED PRODUCTS.
The chairman submitted to the meeting communications he had
received from President McMurtry, President Graham, and President
Schiller, under date of the 10th instant, concerning recent reduction
in the prices of finished products of the American Sheet Steel Co.,
American Tin Plate Co., and the National Tube Co.
Upon motion, duly seconded, it was voted that this committee
hereby recommends the action suggested by President McMurtry in
his letter to the chairman, dated the 10th instant.
November 18, 1902.
Present: Gary (chairman), Perkins, Steele, Edenborn, Converse,
Rcid, Gay ley.
CARNEGIE STEEL CO.— CEMENT PLANT.
The matter of expenditure of ,|600,000to erect a cement plant in
the Pittsburgh district was presented, together with President Corey's
letter on the subject to Mr. Gayley, under date of the 29th ultimo.
This matter was considered with the following proposition :
ILLINOIS STEEL CO. CEMENT PLANT.
The matter of expenditure of $1,540,000 for the purpose of build-
ing a new cement plant was presented, together with a letter addressed
to President Bumngton by Edward Si. Hagar, manager of the
cement department of the Illinois Steel Co., under date of October
25. It is stated in said letter that the foregoing sum would build a
plant capable of turning out 4,000 barrels of cement per day — the
plant to nave f uU electrical equipment ; it also includes the purchase
of 24 acres of ground a short distance south of South Chicago,
together with the cost of grading and sewering the property.
Mr. Gayley pointed out in a general way that tnere is no doubt
about there being an ample market in both districts for the cement
that would be manufactured; that it is reported that others are
going into the business, and that the profits of the business are
attractive.
Upon the subject of the cement business of the Illinois Steel Co.
the chairman stated generally that about eight years ago a young
man claimed he had a patent for malcing cement whereby he utiHzed
slag as the principal ingredient; that after investigation the Illinois
Steel Co. invested about $50,000 or $76,000 at their North Chicago
works, which paid so well in proportion to the investment that the
Federal Steel Co. (organized just about that time) authorized the
investment of about $300,000 in a cement plant at South Chicago;
that since then this corporation has authorized some appropriations
for extension of that plant. The cement manufactured is what is
called Steel Portland cement — a cement of very great strength and
very durable where it is not exposed to the air. It has been used
to great advantage and satisfaction in railroad work, bridge work,
etc. There is no question about the cement business being a first-
UNITED STATES STEEL CORPORATION. 8809
class investment, promising great returns. I don't know, but I think
we have all the patents covering the manufacture of the cement.
The question before us, however, is whether or not you will make
larger investments of money for the extension of a business which is
before us and which will pay very large returns.
Upon motion of Mr. Steele it was duly voted that the foregoing
Eroposition to build cement plants at Pittsburgh and South Chicago
e laid over for further consideration.
November 25, 1902.
Present: Gary, Perkins, Edenborn, Converse, Gayley.
CHAMPION MINE, MARQUETTE RANGE, MICH.
Mr. Gayley presented a letter from Mr. C. D. Fraser, secretary of
the Oliver Iron Mining Co., under date of the 24th instant, concern-
ing the matter of proposed purchase of the stock of the Champion
Iron Mining Co. Mr. Gayley states in substance that the property
is located close to the property of our Lake Superior company, near
Ishpeming, Mich.; that the ore is a specular ore and quite rich; that
the property contains a large bed of ore; that nearly a year ago an
offer was made to the Champion Iron Mining Co. that we would
lease their property and pay them 50 cents a ton royalty, which was
declined; that on the basis of 2,000,000 tons of ore in the ground
and at 50 cents a ton royalty it would return to us the cost of the
investment; that the mme is well equipped and will require no
timbering; that there are 20,000 acres of unexplored land included,
and a good portion of which is located on the ore formation; that it
is probable a great deal more ore will be found on the unexplored
land; that the ore can stand $1 a ton charge as royalty at the pres-
ent market price of $4.60 and show a good profit.
Mr. Gayley feels satisfied that the property will be taken up by
some Cleveland interests, or perhaps by the new Sharon-Union Co.
in Pittsburgh, and he would much prefer to see it with this corpora-
tion rather than with its competitors. Mr. Gayley believes that if
the finance committee is willing to spend the money the purchase is
an absolutely safe one.
Mr. Fraser's letter states that the entire capital stock is 20,000
shares of $75 each, or $500,000; that the president of the Champion
company is having the stock deposited with him to be sold at not less
than $70 a share, and that he now has 15,000 shares and expects to
secure every share; that the president informs him that a satisfactory
offer from us might purchase the property. Mr. Fraser's suggestion
is that an offer or $70 per share be made for all the stock, or not less
than 80 per cent, coupled with their guaranty of the claimed cash
surplus of $400,000 and of an ore body of 2,000,000 tons of ore, 40
per cent of which is to be first grade. Mr. Fraser thinks that an offer
of $1,000,000 might obtain the property.
"The chairman stated that that kind of ore is scarce and we have
use for it, and that we do not want our competitors to get it.
Upon motion, duly seconded, it was voted that the purchase be
recommended to the finance committee.
3810 united states steel cobporation.
Decembee 2, 1902.
Present: Gary (chairman), Perkins, Steele, Edenborn, Converse,
• Gayley.
CHAMPION MINE, MARQUETTE RANGE, MIOH.
Mr. Gayley again called attention of the committee to the desira-
bility of our acquiring the property of the Champion Iron Mining Co.
and stated that President Cole has not only studied the maps or the
property, but has gone down into the mines and reports that he is
satisfied that the mine ought to produce 4,000,000 tons and agrees
with Mr. Gayley that we ought to get this property.
The chairman pointed out that this mine would be worth more to
the Illinois Steel Co. than any one else because of the low freight rate
from Ishpeming to Chicago.
In answer to Mr. Steele's inquiry as to how Mr. Gayley felt on the
subject of purchases of ore lands, Mr. Gayley replied that he would
buy every pound of ore and every piece of ore property he could get
in the Northwest.
Mr. Converse stated that he would like to go on record that he was
of the same opinion. Mr. Gayley called attention to the fact that the
explorations west of the Missabe and Vermilion Ranges show no ore.
Mr. Perkins believes we ought to get this property, but not on the
present terms. Mr. Converse stated he supposed it would be the pol-
icy to replace what we took out every year in order to keep the 50
years' supply before us as far as possible. The chairman said that he
thought we ought to take in these properties at a fair price. Mr. Per-
kins suggested that Mr. Fay be invited to come here and meet the
chairman and Mr. Gayley.
Upon motion, duly seconded, it was voted that the whole matter be
referred to the chairman and the vice president to investigate and
report.
December 9, 1902.
Present: Gary (chairman), Perkins, Steele, Reid, Edenborn, Gayley.
CHAMPION mine, MARQUETTE RANGE, MICH.
Mr. Gayley stated that since the last meeting of this committee,
when the matter of the proposed purchase of the property of the
Champion Iron Mining Co. was referred to the chairman and Mr. Gay-
ley, an option, expiring December 17, to purchase 17,000 shares, more
or less, at the price of $75 per share, on the terms and conditions stated
in said option, had been secured from Mr. Fay, and that if the option
were accepted it would require the payment of $50,000 down and the
balance before March 17 next.
Upon motion, duly seconded, it was voted that this committee
hereby reaffirms its previous recommendations to purchase the prop-
erty.
UNITED STATES STEEL COEPOBATION. 3811
Decembee 30, 1902.
Present: E. C. Converse (chairman), Perkins, Steele, Keid, Gayley.
AMERICAN STEEL & WIRE CO. — ADVANCE IN PRICES — PALMER TELE-
GRAM.
Mr. Gayley read a telegram he had received from President Palmer
in regard to the expediency of an advance in the selling price of some
of their finished products of about $1 a ton and on the same com-
modities probably $1.50 a ton. This does not include any change in
the price of barbed wire. Mr. Palmer wires that the trade is looking
for this increase and requests to make the advance have been numer-
ous. Mr. Gayley stated that he desired to have the views of the
executive committee in regard to the matter, and pointed out that
while it might be said that the purchase and control of the Union-
Sharon outfit really caused the advance at this time, yet the fact is
that there has been an advance in freight rates, and he believes that
the American Steel & Wire Co. is justified in taking this action. Mr.
Converse stated that it is merely an advance to cover the cost of winter
freights — ^nothing but an equalization and the proper thing to do.
January 6, 19Q3.
Present: Gary (chairman), Steele, Raid, Gayley.
OLIVER IRON MINING CO. ORE PROPERTY, MISSABE RANGE — WHITE-
SIDE FORTY.
Mr. Gayley presented a letter addressed to him by President Cole
under date of the 3d instant, concerning an option which the Oliver
Iron Mining Co. has on the Whiteside Forty, on the Missabe Range.
The terms offered are $112,500 as the purchase price of the lease;
a royalty of 25 cents per gross ton and a minimum of 50,000 tons per
annum.
Mr. Cole recommends the purchase of this lease on the best possible
terms and thinks we could secure it for $100,000, and a royalty of 20
cents per ton. Mr. Gayley, in a letter to the committee dated January
6, indorses the recommendation of Mr. Cole with the exception that
the minimum should be 25,000 tons. Mr. Gayley stated that the
option expires January 15; that it adjoins the property owned by
Mr. BjU and contains about 7,000,000 tons; that he does not know
of any other block of ore property in the Northwest outside of this
and the property of Mr. Bill that they will report ; if any new ore is
found they are satisfied it will be some isolated spots on the Missabe
Range, of the line of St. Louis and Itasca kinds, and that every 40
has been drilled.
" The chairman stated that he believed we should take this lease,
and if it can be secured for $100,000 and at the royalty of 20 cents
and at a minimum of 25,000 tons.
Upon a motion, duly seconded, it was voted that the purchase
of the lease, on the terms stated by the chairman or better, be recom-
mended to the finance committee.
3812 UNITED STATES STEEL, COKPOEATION.
SINKING FUNDS.
The chairman called attention to the fact that we have a good
many sinking funds, and we set aside a great many different sums of
money for special purposes including for instance, a fund to take
care of the ore which has been taken out from time to time, another
for coal and for various other things ; that, as a matter of fact, these funds
are not kept separately and invested, but are kept with the general
fund ; that he believes this committee should recommend to the finance
committee that these funds should be kept separate and invested so that
they may be available for the particular purpose designed. The
chairman stated that while we are providing sinking funds for our
ore, yet we have not, practically speaking, a fund from which we
can draw to replace the ore that has been taken out, and suggested
that the treasurer should go to our fiscal agents and open such an
account and invest the funds so that they can be drawn upon from
time to time whenever needed.
Upon motion, and by unanimous vote of all present, the foregoing
suggestion of the chairman was duly adopted.
January 8, 1903.
Present: Gary (chairman), Perkins.
January 13, 1903.
Present: Gary (chairman), Steele, Edenborn.
union steel co. balance discussed.
January 20, 1903.
Present: Gary (chairman), Perkins, Steele.
PRICE OF ORE FOR 1903.
Concerning tliis subject IVIr. Gayley made substantially the fol-
lowing statement: That some of the Cleveland ore interests have
had a good many talks with him concerning the price of ore for 1903;
that last year the best price of Old Range ore was $4.25, and for
Missabe ores of the same quahty $3, which he believes to be too
much of a spread ; that last year he endeavored to have the prices
cquahzed, but he could not do it; that this year, however, the parties
are in harmony and the opinion prevails among them that an advance
of 25 cents on Old Eange ore is justifiable because of the price of
pig iron and coke; that he believes that the differential between
Missabe and Old Range ores should be reduced and thinks it might be
entirely wiped out in two or three years; that although we have no
ores to sell, that they still regard us as a factor and he believes that it
is a very conservative advance and that it would be a splendid thing
for the corporation.
The Chairman. I thoroughly believe that the present differential
between JVIissabe and Old Range ores is too great, and that this price
ought to be equalized. In regard to the matter of using our influence
infixing the price or ore: Inasmuch as we have no ore to sell I do not
think we have any interest in the question except indirect^, and that
therefore we should not be parties to an increase in the price. I doubt
whether we should take any active part in the association.
UNITED STATES STEEL COEPOEATION. 3813
Mr. Gayley. The position that we have always taken since the
formation of the company is that we are perfectly wilhng to have
them fix the price, and if it is upon a conservative basis we will concur,
although we are not a party to it. At the same time our concurrence
would not fix the price of ore, but it enables us to have an influence
in the association which is valuable to us. As members of that asso-
ciation I think we ought to express our own views before the meeting
takes place. We did the same thing last year.
The Chairman. I would vote against the advance in price. I
think this corporation should exercise a restraining influence on the
price of raw material.
Mr. Gayley. It is our influence that has kept down the ore to. a
conservative basis.
Mr. Perkins. If the association puts up the price they will be on
record as having done it, and it is something we have nothing to do
with.
Mr. Converse. We have no ore to sell if it is put up.
The Chairman. I don't quite agree with Mr. Gayley that we have
to take a position now. We have no ore to seU, and whatever the
association does it must be responsible for.
On motion of Mr. Perkins duly seconded it was recommended that
no action be taken regarding the foregoing matter.
January 27, 1903.
Present: Gary (chairman), George W. Perkins.
February 3, 1903.
Present: Gary (chairman), George W. Perkins, Charles Steele.
February 10, 1903.
Present: Gary (chairman), Steele, Reid, Gayley.
AMERICAN SHEET STEEL CO. DISSOLUTION OF SHEET MILLS.
Distribution of this plant among other plants advised.
February 17, 1903.
Present : Gary (chairman) , Steele, Gayley.
AMERICAN STEEL AND WIRE CO. — ADVANCE IN PRICES.
Mr. Gayley stated that the American Steel & Wire people feel
that the price of their standard wire products should be advanced
about $2 per ton; that the trade is looking for it and this is really
only a partial restoration of the prices reduced some time ago.
List of improved and constructed plants amounting to $31,448,186.
February 24, 1903.
Present: Gary (chairman), Edenborn, Converse, Gayley.
Iron purchases.
3814 united states steel. corporation.
March 3, 1903.
Present: Gary (chairman), Converse, Edenborn, Steele, Gayley;
E. J. Buffington by request.
CEMENT MANtJEACTURE.
Mr. Gayley stated that Messrs. BuflBngton, Corey, and Morrison,
the committee appointed to take up the question of investigating
and reporting with reference to the advisability of enlarging the
facilities for the manufacture of cement from furnace slag recom-
mend an appropriation of $800,000 for the building of a cement plant
in the Pittsburgh district, and for the expenditure of $1,500,000 for
an additional plant at South Chicago.
On motion duly seconded it was voted that the foregoing expendi-
ture of $2,300,000 be recommended to the finance committee.
March 17, 1903.
Present: Gary (chairman), Steele, Converse, Dickson.
PIG IRON CONTRACTS WITH VALLEY FURNACES.
Mr. Dickson stated that —
We had due on our various contracts about 116,000 tons of Besse-
mer iron at various prices, most of it from the furnaces in Mahoning
and Shenango Valleys, Ohio; that in most every case we had con-
tracts to deliver come through H. C. Frick & Co. to these furnances,
and managers now claim that because of our failure to deliver the
coke they are not obUged to make deliveries of iron; that President
Lynch calls attention to our discrimination against these furnaces in
favor of our own in the matter of deliveries of coke.
On motion of Mr. Steele duly seconded it is voted that the matter
be referred to President Corey to make the best settlement he can.
March 24, 1903.
Present: Gary (chairman), Schwab, Converse, Steele, Gayley.
KOSMERL ORE PROPERTY.
Mr. Gayley stated that there is now an opportunity to secure an
option on the ore property known as the Kosmerl, lying between the
"\Thiteside and the Wanless properties, and it seems to be the deep
part of the basin of ore of these three properties; that our people
believe the properties wiU show at least 5,000,000 tons of ore; that
the basis of the lease would be 35 cents per ton with a maximum of
50,000 tons the first year, 100,000 tons the second year and 150,000
tons thereafter; that $30,000 cash is required for the option expiring
November 1 next, and the sum of $200,000 is to be advanced to
the fee owners as advanced royalty on taking the lease; that the
latter sum of $30,000 is to be returned by taking 10 cents per ton
from all ore mined; that it is also provided that if 2,300,000 tons of
ore are not shown, enough additional in excess of the 10 cents may
be deducted to repay the advance royalty; that the ore averages 59
per cent iron; that inasmuch as we now control the Wanless property
UNITED STATES STEEL CORPORATION. 3815
on the west, both properties coxild be worked as a unit with a single
installation of hoistiag and power plants, etc.; that the property
has an area of 80 acres, but the lower 40 does not give any promise.
The chairman stated that a royalty of 35 cents for non-Bessemer
ore is apretty big one.
Mr. Grayley stated he believed it to be a splendid proposition, and
that if we did not take it Mr. Hill wiU; that he does not think we
ought to let it get away from us.
Mr. Steele. If we can get the ore properties on a fair basis I think
we ought to take them.
On motion duly seconded it was voted that the offer be recom-
mended to the fuiance committee.
April 7, 1903.
Present: Gary (chairman), Schwab, Steele, Edenborn, Converse,
Reid, Gayley.
BESSEMER & LAKE ERIE RAILROAD CO. UNION RAILWAY CO.
The president presented to the meeting a letter dated the 26th
ultimo, addressed by Judge Reed to the Bessemer & Lake Erie Rail-
road to Mr. Gayley, concerning the expenditure of $225,000 upon the
Bessemer Railroad property, and $43,205 upon that portion of the
road operated by the Union RaUroad Co. The details are set forth
on appropriation blanks presented, showing that the expenditure is to
equip 19.8 miles of track, terminals, and sidings at a cost of $225,000,
and the construction of 87,000 feet of double track on the Union Rail-
road at a cost of $43,205. It is explained by Judge Reed that while
the figures given are the apparent cost, the actual outlay will be re-
duced by $56,000, because they have 2,000 tons of 100-pound rails on
hand, which can be used. The cost of the foregoing is to be charged
to the operating expense of improvement.
In regard to the foregoing the chairman stated that when the ques-
tion of improvements came up before the presidents some time ago.
Judge Reed then stated he had not received sufficient figures from his
{)eople to enable him to make estimates, but he would present them
ater. On motion duly seconded it was voted that tne foregoing
expenditure be recommended to the finance committee.
CONNEAUT LAKE BESSEMER & LAKE ERIE RAILROAD CO.
The president presented Judge Reed's letter of the 27th ultimo, to
Mr. Gayley, concerning a proposition to acquire Conneaut Lake, the
iron plant located upon it, the excursion grounds known as Exposi-
tion Park, together with some steamboats running on the lake.
Judge Reed states in substance that the plan embodies the purchase
by a corporation having a bond issue of $200,000, and a corresponding
stock issue. That 75 per cent of the stock be turned over to the Bes-
semer & Lake Erie Railroad Co. upon its guarantee of the issue of
bonds, and that 25 per cent of the stock should go to the local people
of the promoting enterprise interested in making it a success; that
the bonds would be 20 years, at 5 per cent; that the railroad com-
pany would retain $23,000 of the bonds to repay improvements made
by it on the Exposition Park property; that the earnings from the
3816 UNITED STATES STEEL CORPOEATION.
privileges ia the park and from the boats net about $16,000 annually;
that we handle about 70,000 railroad tickets each way during the sum-
mer; that the business to and from the lake has been increasing, and
that permanent control of the lake and excursion grounds will prob-
ably nelp to increase it still more.
The president stated that from a railroad point of view it would
contribute to the revenue of the railroad.
Mr. Reed suggested that it is a Httle outside of the steel business.
On motion duly seconded it was voted to lay the matter on the
table.
April 21, 1903.
Present: Gary (chairman), Schwab, Edenborn, Converse, Reid,
Steele, Gayley.
TROY STEEL PRODUCTS CO.
The president stated that he wished the opinion of the committee
in reference to the Troy plant; that it will cost $178,800 to start it,
and four months' time; that we might have to face an additional
outlay of approximately $75,000 to reline the furnaces; that they
can make pig iron there at $16 a ton; that we can buy it to-day to
supply the Pencoyd and Worcester at about $19; and that the ques-
tion is, should we spend this money and be ready to start four months
hence for making of this pig iron under the conditions such as we see
them, or let the thing go and buy the iron.
The president does not think we ought to start those furnaces under
th& conditions.
Mr. Edenborn said he would not put any money into it.
The chairman said that when we were urged to buy this property
the conditions were quite different from what they are at the present
time; that a special committee reported a certain value to this prop-
erty, and a certain cost of production; that conditions have changed
at the present time, and he does not think it would be advantageous
to go ahead simply for the purpose of supplying the plants at Wor-
cester and Pencoyd.
Mr. Gayley thought we could not get any coke and said that the
Witherbee people told him they would not have any ore for some time
on account of theii- contracts.
On motion it was recommended that the improvements be not made
at the present time.
LAKE FREIGHTS.
Mr. Gayley said that the rate last year was 80 cents from Duluth,
but we can get the bulk of ours at 75 cents by holding off. Some are
wanting us to charter for our surplus at 90 cents, but after the con-
ference with the president it was decided to go ahead on the basis of
85 cents Duluth, 80 cents Marquette, 70 cents Escanaba, and 2,000,000
tons have been chartered at 85 cents, 75 cents, and 65 cents. We need
about 5,000,000 tons now. The chairman thought we can not take
chances on securing 25 per cent of our charters later. Mr. Gayley
thinks, it much safer not to leave more than 20 per cent unchartered
in view of the heavy gi-ain shipments later in the season.
UNITED STATES STEEL COEPOBATION. 3817
DEEING HAEVESTEE.
The president called attention to the advisability of seeing Jones &
McLaughlin people concerning the matter, and on motion duly sec-
onded the subject was referred to the president with power.
Mat 5, 1903. ■
Present: Gary (chairman), Schwab, Perkins, Converse, Edenborn,
Keid, Gayley.
Lorain foundry purchase recommended.
Lorain Steel Co. South Chicago expenditures.
ELGIN, JOLIET & EASTEEN RAILEOAD CO. — FOUR SWITCHING ENGINES.
The president called attention to the fact that on April 7 a recom-
mendation was presented from President Banks concerning the placing
of an order for four switching engines at a cost of $46,000, and that at
that time action was deferred on the proposition because Mr. Banks
had 60 days in which to secure space from the locomotive builders.
On motion duly seconded the foregoing expenditures were recom-
mended to the finance committee.
PURCHASE OF PIG IRON FOR JULY, AUGUST, AND SEPTEMBER, 1903.
The president stated that he would like to obtain the views of the
committee in regard to the advisability of the purchase of 30,000
tons of pig iron, at $18.50 for the third quarter of 1903, and for which
we would exchange coke at the rate of $3 per ton; that we will require
about 100,000 tons in that quarter; that he believes we ought to
always be buyers of some pig iron; that it would be better to even
shut down some of our high priced furnaces and be purchasers;
that the price of our finished steel products being regulated by the
price of pig tin, we ought not to be endeavoring to get the cheapest
iron; that we ought to maintain the price by little purchases; that
$1 a ton is such a little thing compared with the advantages we
receive in the finished products; that if we had purchased pig iron
there would not have been the present downward tendency in it.
The chairman stated he would be in favor of making the purchase.
The price of our coke should be $3.50. We have bookings enough
now to justify us in the purchase of 30,000 tons for those months,
but can we spare the coke ? I do not think we ought to buy pig iron
at prices considerably higher than the price will be when we need
the iron. I would hope that the business conditions are such that
next July and August we have to buy pig iron at $18.50 or $19 a ton,
but I do not think it is necessary to buy it now.
The price advanced from $16 to $21 because of its scarcity, but
the price of finished steel did not advance. I would like to see pig
iron sent down to about $16.50 a ton and stay there.
Mr. Gayley. The first contract made for coke was at $3.50. The
intercompany price is $2.60 plus. I think we ought to hold the
price of pig iron at $18.50, and that it is important for us to stay in
the market and buy at $18.50, rather than miss the deal. I would
recommend the excnange on the basis of $3 a ton for coke.
Upon motion duly seconded it was voted that the matter be placed
in the hands of the president to act.
3818 uxited states steel coepokatiox.
Mat 12, 1903.
Present: Gary (chairman), Schwab, Steele, Edenborn, Gayley.
MONROE ORE PROPERTY, CHEMUNG IRON CO.
Mr. Gayley submitted the following: The Monroe property which
was acquired through the Chemung Iron Co. controlled by Mr. Henry
W. Oliver and others, contains about 25,000,000 tons of ore, and the
lease laas 28 years to run. On this we are paying 50 cents a ton
royalty. The lease on this ore property owned by the Chemung
Iron Co. carries with it the traffic contract to the Eastern Minnesota
road. It was the intention of the Chemung Co. to obtain a surrender
of this lease, and have a new lease executed without the traffic con-
tract, which would leave the property free of any traffic obligation,
but the various plans presented do not seem to be practicable for
accomplishing this. In carrying out this scheme, as it was the inten-
tion of the Chemung Co., Mr. Oliver proposes to purchase the fee of
this property on behalf of the Chemung Co., canceling the lease, and
selling the fee to us on the basis of 30 cents per ton of merchantable
•ore shown up in the property; bonds to be issued for the same as in
the case of the ore properties which we got through the Union-Sharon
deal. In accordance with Mr. Fraser's figures, as the lease has 28
years to run, on a basis of 50 cents a ton royalty, this royalty on a
Ijasis of 4 per cent for the period of the lease has at present a cash
value of 30 cents per ton. The securing of the property therefore on
this basis would not cost more than on the present basis and we will
be sure of the traffic contract on the ore which will net us 35 cents
per ton. In other words, by securing the traffic contract we secure
the ore in this property free of royalty, the profit on the traffic con-
tract more than compensating for the royalty.
Upon motion duly seconded, the foregoing proposition was recom-
mended to the finance committee.
May 26, 1903.
Present: Gary (chairman), Schwab, Steele, Gayley, Converse.
PURCHASES OF PIG IRON.
The president reported the purchase of about 40,000 tons from the
Valley furnaces and 30,000 tons from Mr. Synder at $18.50 with the
privilege of canceling any portion not shipped by the 1st of October.
The president stated that ne believes the purchase at this time has
been a very wise thing.
ORE SHIPMENTS 1903.
ilr. Gayley reported that 10 per cent of our shipping period has
expired and we have 11 per cent of our ore down, althou^ we started
two weeks late.
united states steel cokpobation. 3819
June 2, 1903.
Present: Gary (chairman,) Schwab, Reid, Converse, Gayley, Steele.
INGOT MELTING FOUNDRIES.
Report and expenditure approved.
National Tube Co.
Carnegie Steel Co.
FAY OPTION MESABI ORE LANDS.
Mr. Gayley presented the matter of the proposition to purchase the
lease of property owned by Mr. Fay on the Mesabi Range, situated
in section 22, 58-20, on the following basis, namely:
To pay $150,000 in cash at the time we take over the option, and
we would have six months in which to explore the property; and when
we call for a lease we are to pay 15 cents per ton bonus on all ore
shown up not to exceed a total amount, however, of $125,000, includ-
ing $50,000 paid in advance. Mr. Fay's lease calls for 25 cents
royalty, 50,000 tons minimum, and runs for 30 years. Mr. Gayley
recommended the obtaining of the foregoing lease.
The chairman stated that he approves of it and suggested that Mr.
Gayley and Mr. Cole write a letter recommending it in order that the
finance committee would have a record of it when it came before
them to-day.
On motion, duly seconded, it was voted that the foregoing propo-
sition be recommended to the finance committee.
June 9, 1903.
Present: Gary (chairman), Charles Steele.
Note. — The record of minutes of the executive committee closes with the minutes
of the meeting of June 9, 1903. In the minutes of the directors' thirty-sixth meeting,
August 4, 1903, it is stated that no meeting of the executive committee was had since
the last meeting of the board. At the directors' thirty-fifth meeting, July 7, 1903,
the minutes of the executive committee for June 9, 1903, are approved, and the action
of the executive committee since that date is confirmed.
July 2, 1901.
Mr. Roberts stated that in his opinion you will have to face the sit-
uation next year and determine whether you are going to have union
labor in all of your mills or not, and that if the present is not the time
to do it it had better be done next year. The chairman stated that
probably the men would be satisfied if they gained a point; that while
it is very humiliating, nevertheless it is a critical period and we had
better temporize if it can be done. Mr. Reid and Mr. Converse are
in favor of sending Mr. Preston' to Pittsburgh.
July 3, 1901.
LABOR.
The president reported that everything remains the same as yes-
terday; that he had a little talk with Mr. Arms on the line of the let-
ter previously mentioned.
It was the opinion of the members of the committee who were
acquainted with Mr. Arms that he is the right man to go and see Mr.
Shaffer and find out what he wants and bring about an opening, so
31572— No. 53, pt. 2—12 6
3820 UNITED STATEcf STEEL CORPORATION.
that if possible or necessary Mr. McMurtry and Mr. Shaffer could be
brought together. The matter was left pending the report of Mr.
Arms to be made later of the talk he expects to hare over the tele-
phone with Mr. Shaffer.
July 3, 1901.
LABOR.
Mr. Raid reported that he had just talked with Mr. Arms over the
telephone. The latter stated that Mr. Shaffer told him over the tele-
phone that he was very sorry to have to take the action indicated
and would be very glad to see Mr. Arms when he came to Pittsburgh.
July 6, 1901.
LABOR.
The president reported that Mr. "Warner Arms had gone to Pitts-
burgh and, on the basis last spoken of at our last meeting, had quite
a lengthy interview with Mr. Shaffer with reference to the American
Tin Plate Co. He did not discuss other questions with Mr. Shaffer
except incidentally. The result was that the association has agreed to
postpone calling out of the men at the tin-plate works providing a
joint conference can be had with the representatives of the sheet, hoop,
and tin-plate companies with the executive committee of the associa-
tion at an early date during the coming week. Mr. Arnis then stated
he would take it up with those companies and ascertain if it would
be agreeable to the respective companies. Mr. Arms desires to report
promptly to the association, so that it might issue instructions to the
men to go to work in the tin-plate mills on Monday morning, the 8th
instant.
The president stated that the question to decide is whether repre-
sentatives should be sent and, if so, just how they should be instructed
and who should be sent. The chairman stated that it should be
clearly understood that the United States Steel Corporation has noth-
ing whatever to do with it; that the representatives of the three sub-
sidiary companies are not to state that they are acting in concert, or
even by consultation, with any of the officials of the United States
Steel Corporation. Personally, the chairman thinks it wise that
responsible representatives of the sheet, hoop, and tin-plate companies
should act independently, but for their own companies, going together,
if desired, and meet Mr. Shaffer or his committee, or both, with a view
of ascertaining what the conditions are and what can be done. The
chairman stated to the president that he believed men big enough to
handle the situation should be sent; that they should be men in whom
the president has confidence. The chairman endeavored to impress
upon them the fact that each represents his own company only and
believes that this is very important. The chairman thinks that either
the presidents of the companies or representatives selected by the
president, good men, of responsibility, and who would be satisfactory
to Shaffer, should attend the conference.
Mr. Roberts stated that he thinks it very desirable to open negotia-
tions, if possible, and agrees with the chairman.
Mr. Edenborn is in a little doubt whether parties representing the
three companies should go together, and yet it may be wise to do so
just at this time. He would instruct the men that the limit under all
UNITED STATES STEEL, COEPOEATION. 3821
circumstances would be the granting of the mills that were union last
year, and for which the scale was signed a year ago, and would sign for
such mills now, but does not believe in conceding one iota more.
The chairman explained his opinion that the men who go should be
pretty big men and able men, who if necessary might be competent
to decide pretty promptly what to do ; they should be men with sense
enough not to be antagonistic to the views here without full consulta-
tion with New York.
Mr. Edenborn would distinctly say that they have not the right
to go beyond a simple agreement with the mills in dispute, but no
additional mills.
The president agrees with Mr. Edenborn except that he would not
be so decided with reference to the De W. Wood mill if it came to
that as a final question. The president believes that the association
would not be in accord with the views of Mr. McMurtry.
In response to an inquiry from the chairman, the president stated
that he had been assured by the head of the financial house that he
will stand by whatever action the president thinks best. The presi-
dent has also stated that the jumor partners expressed themselves
as very anxious to have this matter settled, but did not at any time
state that it should be settled.
The chairman called attention to the fact that it seems from the
statements made to be clearly understood what policy ought to be
pursued.
The president stated that he thought Mr. Smith should not be sent
because it would place him in an exceedingly awkward position in
view of what has already occurred. Mr. Preston, of the hoop company,
he thinks, would be a very good man. The president will talk the
matter over with Mr. McMurtry as to whom it would be best to send.
The chairman stated that he regards Mr. McMurtry as a very able,
conscientious man, nevertheless it may be that he is so grounded in
his beliefs concerning these troubles that he has been a little inclined
to not volunteer to us the information concerning the two mills we
ought to have. The chairman does not believe in criticism of a man
in that position, every one being hable to make mistakes, yet he
doubted whether Mr. McMurtry would like to go and meet the associa-
tion representatives.
July 8, 1901.
labor — instructions to conferees.
The president reported that Mr. Preston would have the" whole
matter practically in his hands and act in the capacity of chairman.
It is the belief of the president that Mr. Preston is well able to handle
the situation.
ilr. Converse thinks that the nature of Mr. Shaffer's utterances to
the press seem to him a preparation for a let- down.
The president feels that Shaffer thinks we have made a decided
concession already and that all they need to do is to stand firmly in
their demands and we will accede to them. He is inclined to think
that Mr. Preston will have a "pretty hard row to hoe" if he succeeds
in doing business on the basis tnat has been outlined to him, and that
if Shaffer is not talking purely for effect we may have to meet the
other question.
3822 UNITED STATES STEEL. COEPOBATION.
WELLSVILLE MILL.
The president reported that the superintendent of the Wellsville
sheet mill down on the Ohio Kiver had discharged 12 men who were
endeavoring to institute a lodge. Later in the meeting the chairman
read an associated press dispatch referring to this and stating that
the men were discharged on Saturday last and that Shaffer had
announced that the men would have to be reinstated before any con-
ference could be had.
The president stated that he then had no positive information as
to the time these men were discharged, but it later developed that it
was done prior to Saturday, the 6th instant. The president thinks
it was done under old instructions.
Mr. Edenborn considers that any further concession to the associa-
tion beyond what we have already agreed would be fatal and one of
the most dangerous things to do. He beheves that we have the mat-
ter well in hand and that even if we have to face a tin-plate strike we
should not give in to labor.
The chairman firmly beheves that if Mr. Shaffer succeeds in having
the scales signed for the three mills referred to that that wiU settle
the whole matter. He beheves that we are now confronted with a
situation that is certainly involved in a good deal of danger; that we
may before we know it be in trouble and not able to extricate our-
selves without very serious loss ; that we must therefore weigh the
question with care and caution and must be fully advised from time
to time what is being done and what is expected to be done.
On the subject of the discharge of the 12 men the chairman stated
that although the president has offered little positive opinion regard-
ing labor unions and their extension, nevertheless he does not believe
the president would have advised the discharge of these men last
Saturday. To this the president agreed. The chairman then called
attention to the fact that this certainly emphasizes the proposition
that the superintendent of mills ought to be in constant communica-
tion with the controlling authorities of the respective companies and
that the presidents should be in constant communication with this
company. The president stated that there were times when this
was not feasible.
Mr. Koberts thinks we have been lacking in full and accurate infor-
mation as to what the situation is in these different mills and that it
seems to him that unions extend further tlirough those mills than it
was represented by the officers of the companies that they do. He
fears that lodges are estabhshed through the sheet mills to a greater
extent than we had supposed.
Mr. Ebenborn pointed out that it took but a few men to organize
and that all that were actually needed were three men. The associ-
ation allows this in special cases.
PLAN OF ACTION.
On the question as to what ought to be done Mr. Reid stated that
he would settle the matter on the very best terms possible and as
quickly as possible and have no row now. In this the chairman and
Mr. Roberts agree. Mr. Edenborn does not agree with this. Mr.
Edenborn believes that it should not be a condition precedent that
UNITED STATES STEEL CORPOEATION. 3823
the 12 men taken out should be reinstated first. Let those men rest
where they are. The mill is not a union mill because it has not been
recognized by the owners as a union mill. If the owners of the mill
had allowed lodges to be formed in this mill, had signed scales for
the mill, and in every way treated with the union regarding this mill
Mr. Edenborn would certainly favor the installation of the 12 men.
Mr. Edenborn says that under the present conditions he would do
nothing.
Mr. Converse stated that so long as negotiations were pending it
could be rightfully considered by Mr. Shaffer that the removal of
these men was unfair, and he would be in favor of explaining that it
was a mistake.
Mr. Roberts stated that in his'judgment practically all of the mills
referred to were more or less union mills and by that meant they
contain more or less union labor. He therefore sees no reason or
good ground why we should refuse to recognize union labor in one
mill and treat with it in another. Based on the conditions which he
believes exist to-day, he is in favor of making the best possible settle-
ment we can with the amalgamated people at this time.
The chairman sums it up by saying that the questions of Mr. Eeid
and Mr. Roberts are not for the purpose of getting over a troublesome
period, but because he believes that union labor is more or less in all
these companies, and if we treat with it at all for some we should
treat with all.
The president stated that he will do whatever this committee wants
him to do. He stated further that he has changed his attitude
because of the conditions as they exist to-day and that he would act
very differently now from what he would do a week ago. He would
now approve of meeting the people and making the best arrange-
ment possible and learn what they wanted. That is, this would oe
up to a certain point, viz, where they demand aU or nothing.
Mr. Edenborn stated that in case the negotiators offered to give
them the three mills and that Mr. Shaffer should demand all or noth-
ing the representatives should call his attention to the fact that if
he called out the tin-plate works he did so at his own risk, that scales
were signed by that company with full knowledge, and that they and
no other broke the contract.
The chairman stated that he agrees substantially with the opin-
ions of Mr. Roberts and Mr. Reid, as he understands them; that he
is in favor of making the very best possible settlement possible and
would have been in favor a week ago if he had known the facts of
recognizing the McKeesport mill, the Scottdale mill, and the Beaver
Meadow nriill. The chairman stated that the negotiators should not
burn their bridges, so to speak; that they should be in constant com-
munication with the president of this company, so that all interested
may be fully advised of what is transpiring and anyone who wishes
to give advice on the subject may be able to give it. The chairman
further stated that in regard to this question when he was certain
what the opinion of the majority was he would be in favor of it in
every respect whether it was in harmony with his original opinion
or not.
The chairman complimented the tin-plate people on the admira-
ble management of their business and feels that if Mr. Reid had been
in charge of the business of the hoop and sheet miUs he would have
settled this long ago.
3824 UNITED STATES STEEL COEPOKATION.
The chairman stated that we all labored under the impression
based on the statement of the president that we could keep so close
track that we would know pretty well what the men were domg;
but that if this union at McKeesport mill had been formed between
last April and the time the presidents were here we did not have the
information. . .
The president stated that in view of the conditions we will have to
settle this strike; it is not that wc have to do so if we had taken the
definite position, but all conditions considered he beheves that this
committee can not do else than as suggested by Mr. Reid.
The chairman stated that it has been suggested that Mr. Shaffer
knows from time to time that we are not entirely of one opinion with
reference to what ought to be done, "and he wants to say that he can
not believe any member of this committee has ever mentioned the
subject outside of this room; and if not, how can Mr. Shaffer know?
The president repHed that at the presidents' meeting it was pretty
well understood that we were not a unit on this question.
LABOK.
The president reported no change in the situation.
Mr. Roberts suggested that the committee should receive more
information as to the mills which are reported to be nonunion. It
is the belief of Mr. Roberts that the representatives in conference
should not express an ultimatum without consulting this office.
Mr. Edenborn stated that he believed the reinstatement of those
men is one of the worst moves in this controversy. He believes that
Mr. Shaffer takes the position that the only basis on which the con-
ference should proceed is that all of the sheet and steel and hoop
mills should sign the scale; that it would be foolish to reinstate the
men, but that if he claims only the signing for the three mills he
would favor agreeing to Mr. Shaffer's position.
Mr. Steele stated that he beUeved that these men should be put
back, that it was a mistake to remove them. Mr. Steele thinks it is
not necessary to decide now on anything but these three mills.
After some discussion the following motion was offered by Mr
Steele and duly carried:
First. That the 12 men discharged should be reinstated if requested.
Second. If the several representatives of the sheet-steel and hoop and tin-plate com-
panies taking up negotiations with Mr. Shaffer and endeavoring to effect settlement on
the basis of conceding to the union the three mills that were in dispute, including
McKeesport, Beaver Meadow, and Sccttdale, failed to reach prompt settlement on
that basis, they should prolong negotiations until an opportunity can be had for furflier
conference with the president of this corporation.
The president reported that Mr. McMurtry had informed him at
noon that if the three mills were conceded, especially McKeesport,
after we had decided to shut it down, he would lose his superintendent.
The president explained his opinion that the handling of the matter
at Wellsville was very bad, but Mr. Smith evidently carried out these
old instructions. The chairman asked the opinion of the committee as
to the understanding of the substance of instructions. The reply was
that it is exactly as Mr. Steele stated. The representatives are not to
cohclude, but leave an open door, so that tlie matter aan be pre-
sented here if necessary.
united states steel coepoeation. 3825
July 11, 1901.
LABOR.
The president reported that Mr. Preston had communicated to him
through Mr. Gary to the effect that the representatives had met Mr.
Shaffer, he believed, this morning; that Mr. Preston is already in
conference with them; that a good deal of talking was going on on
the part of the representatives of the association, and that Mr. Preston
and his colleagues were allowing them to go ahead and let it drift
along in the way that was outlined to Mr. Preston.
July 12, 1901.
LABOR.
Mr. Steele reported to this meeting that an informal talk over the
labor situation had taken place this morning between such of the
directors as could be reached at that time, and there were present
Messrs. J. P. Morgan, H. H. Rogers, Robert Bacon, Abram Hewitt,
Charles Steele, and the president of this company; that during this
talk the whole labor situation was again gone over, and it was the
opinion of those present that it was necessary to give some definite
decision in order that the president might instruct Mr. Preston with
reference to what answer he should make to the amalgamated asso-
ciation; that it was the unanimous opinion of those present that we
should say we were willing to sign the scales in aU of our union mills
as we had last year as submitted, but that we refuse to negotiate with
the association in any particular for the mills known as nonunion
mills. Mr. Steele also reported that the members of the finance
committee were in favor of this disposition and had adopted a recom-
mendation to that effect.
After some discussion between members of the executive com-
mittee present it was moved by Mr. Reid that this committee does
hereby make the same recommendation; all voted in favor thereof
except Mr. Roberts, who voted in the negative. On motion duly
carried the president of the company was instructed to issue the
necessary instructions in the matter.
April 1, 1902.
loraine steel co. — dock laborers.
There is ,a pecuhar condition existing at Loraine. The Loraine
Steel Co.'s plant is entirely nonunion. The dock laborers there belong
to the Dock Laborers' Union, but have never been recognized. The
Loraine Steel Co. has always paid the same wages as paid on all
other docks. The question that presents itself this year is somewhat
different from prior years, owing to the fact that the dock union could
not afford to call out their workmen on the docks, whereas this year
all of the other union men employed by other companies belonging
to the United States Steel Corporation can be called out if Loraine
does not recognize them as the others do. I am somewhat at a loss
in the matter. I do not hke to stir up the question, nor do I want
them acknowledged, because of the effect it may have on the other
men at the Lorame plant. Mr. Coohdge stated that he would prefer
3826 UKITED STATES STEEL, COEIJOKATION.
not to acknowledge and make his fight, but that it might result
seriously. The matter is compHcated, in view of the fact that we
contemplate adding to our works at Loraine. I would be inclined to
tell Coolidge to do the best he can under the circumstances and if
necessary recognize them rather than precipitate trouble.
The Chairman. I think he can settle it this way and would suggest
that he state that he can not sign the scale, but is perfectly willing to
go on same as if the scale were signed. Any other rule would be a
departure from our rule at the Loraine plant.
Mr. Steele. I suggest Mr. Coolidge be instructed to do the very
best he can and if necessary to sign.
On motion, duly seconded, it was voted that the last suggestion be
adopted.
April 20, 1901.
newspaper interviews concerning relation of this compant
to constituent companies.
Mr. Edenborn thinks it expedient to inform the newspapers and
the pubhc generally that the United States Steel Corporation is not
the one employer, but that the individual companies are distinct and
separate for themselves; that the labor troubles of any one company
must be settled by that particular company as an individual com-
pany, and a strike in one must be settled independently of any other
company.
This brought a discussion of the labor situation.
It was suggested that we might make some sort of agreement with
a certain association which is very strong in certain of our companies
to the effect that those compames might deal with the association
with reference to their own forces, if they would let other industries
alone. It was then intimated that the association might not keep
faith, but the experience of one member of the committee was that it
was probable they would keep the agreement. Attention was called
to the fact that certain newspapers seem to publish any and every-
thing that will create sufficient sentiment to influence newspaper
sales; that we ought to do all we reasonably can to keep public senti-
ment right and tne facts before the public. It was the opinion of
one member that he would like to have the workmen understand
that we do not purpose to aUow them to run our nulls, but that we
do purpose always to treat the men fairly as individuals and give
them good, liberal wages.
Returning to Mr. Edenbom's proposition, the commeBt was made
that we can make the public imderstand that the United States Steel
Corporation has no power to direct the policies of all companies; but
that we can let the public and employees understand that while this
company owns the stock of the different companies it will not say
anything to them but that they must all stand for themselves.
One member believes that we will have to recognize the labor
unions everywhere sooner or later and that they are here to stay. It
was then said that even now you must recognize them in certain of our
compames where they are very strong.
At the close of this whole discussion it was decided that the sense of
this committee is that the general poficy should be to temporize for the
UNITED STATES STEEL COEPOEATIOI'ir. 3827
next six months or year until we get fully established, and that the
prevalent conditions of labor and labor unions at the diflFerent plants
should be undisturbed, and that if any changes do occur later they can
be handled individually.
Mat 1, 1901.
labor discussion.
There was a protracted talk on the subject of labor and particularly
as to its bearing upon the future workings of this corporation.
Three members of the committee have very positive ideas on the
expediency of permitting any change in the labor relations now pre-
vailing at the different plants. They insist that they beheve we must
accept wJiatever conditions now exist at our plants; that it is not wise
at this time to institute any change ourselves; that any attempt on the
part of any one else to bring about an alteration in a certain direction
should be promptly discouraged by the ordinary means; that if it is
foimd and desired that changes be brought about later by our com-
panies they can be done when business reasons would permit. These
gentlemen further maintain that long experience in these matters has
taught them that if certain situations which naturally arise from time
to time be not quickly disposed of on the spot with a firm hand, you
will then witness the beginning of the end. They beheve there are
times when you must not tolerate the first step in the wrong direction
to be taken at all; that this matter be decided promptly by the
manager on the spot who must be given authority to act in such
matter in accordance with his judgment of the situation; that there
is no time for consultation in many instances, and when that is the
situation the manager should have the authority to assert himself and
be backed up here when he reports his action.
They favored the prompt reporting here of any trouble and stated
that matters that were serious or are likely to cause trouble should be
handled upon the advice of this committee. They do not approve of
the local manager attempting to decide any and aU questions of this
kind that may arise at the plant, but these small affairs that require
nipping in the bud should be disposed of by him and then report here.
They beheve that where a matter will keep without detriment he
should not decide the question but commumcate fuUy to this office.
One of the three gentlemen holding the above opinion stated that
he favors finessing this whole situation; that we should continue any
condition we receive as our heritage and let it remain quietly in the
present state, but hold fast to the present status of things at the
different plants.
The other members of the committee expressed themselves about
as follows :
One gentleman believes that at first intimation of any trouble the
{)resident of this company should be promptly and fully informed and
et this committee consider it and give its advice ; that the presidents
five no decision until they have a chance to get views of headquarters
efore any stand is decided upon. He thinks this whole question is
so big and grave in its possible effect to the United States Steel Cor-
poration that we ought to proceed with great caution and if necessary
consult with some of our associates on the subject. "He makes the
suggestion that the president of this company should ascertain
3828 UNITED STATES STEEL CORPOKATION.
whether or not the presidents believe there are any labor troubles in
sight and the nature of them, and to also advise them when anything
of this nature is approaching, fuU and exphcit information should be
promptly reported to the president of this company and this commit-
tee can then decide each question at that time. He believes that we
can prettj- clearly define the policy to the various presidents. He
believes it should be our aim to learn what is fair treatment to the
laboring men; that it would be a great mistake if it were understood
we had adopted a policj' of antagonism; that the effect might be
disastrous; that we must not lose sight of the financial interests of
the corporation and must endeavor to keep clear of anything that
might be prejudicial to these interests.
The second member of the committee who held different views from
those of the first three gentlemen, expressed himself strongly on the
point of the inconsistency of recognition of certain conditions at one
plant and yet we propose to discourage the installation of similar con-
ditions elsewhere. He insists we must be consistent. He would let
the men everywhere establish conditions and pay no heed to the mat-
ter unless it led to abuse, and then he would certainly approve of
fighting the matter upon that ground. He offers this proposition:
That we do not deny to one works what we tolerate in others.
Upon the plan of giving local presidents and managers the handling
of what may appear to be petty situations he made comment that he
is rather inchned to think that this power should not be put in the
hands of the local officers on the ground that there is strong proba-
bility of it some time involving this company in very serious labor
troubles. The further discussion of this whole matter was finally laid
over for another session.
May 2, 1901.
labor discussion.
A brief report of the preceding meeting was read by the secretary
and eUcited no dissenting voice.
There was some further talk about on the lines of the preceding day,
but nothing definite decided upon.
The committee decided that they would not submit the matter to
tlie board of directors at the present time.
May 13, 1901.
labor matters vessels on lakes.
The president reports that on Saturday and Sunday he was in com-
munication mth Mr. Woh-in, who feared that he would be unable to
start out the boats this morning unless prompt assent were given to
the demand made by the engineers on the steamers on the lake for
additional help. The president stated that it was a matter for quick
decision, and inasmuch as other vessel interests had agreed to the
demand, there was nothiag to do, he beUeved, but to tell Mr. Wolvin
to agree.
Upon motion the action of the president in the premises was
approved. ,
UNITED SrAa?BS STEEL COBPOKATION. 3829
May 23, 1901.
labor situation.
The president stated that he sees no reason to change the opinion
heretofore expressed by him. He believes that when the labor scales
are presented later they should be accepted if reasonable and go
ahead with our work.
May 28, 1901.
LABOR.
The president informed the committee that he has been recommend-
ing to the presidents of the subsidiary companies the pursuance of the
policy outlined at this committee by the president at previous dis-
cussions in these meetings, and stated that while he was under the
impression that while there was no actual vote recorded upon the
subject, yet he knew of no dissenting opinion of the committee as a
whole, and therefore had proceeded in several instances along the lines
suggested. He thinks it better to have a formal vote of the com-
mittee recorded, and therefore brings up the matter.
Upon motion it was voted that the committee do hereby approve
of the action taken by the president heretofore, and reconamends that
it pursue the same policy in the future.
June 3, 1901.
LABOR.
The president reports that he has had a talk with the presidents of
the subsidiary companies with reference to the attitude of organized
labor, and has learned from reports of the meeting of the association
in Milwaukee that it has been decided to make no material changes in
the scale.
The president stated that he has recommended that the presidents
of the constituent companies sign the scale for mills where the asso-
ciation is estabhshed, providing the scales were reasonable; that he
has recommended to them that the present condition of things be
maintained at all their mUls.
June 17, 1910.
LABOR.
The president asked the committee for its opinion as to the recom-
mendation he should make to the presidents of the subsidiary com-
panies regarding the attitude they should maintain toward the asso-
ciation when the scales are presented, and further with respect to any
differences that might arise owing to the probability of the association
intending to extend its organization into nonunion works. As the
presidents were then in session, Mr. Schwab desired to talk to them
about the matter.
The president believes that our policy should be to recognize the
unions where they now exist, but to refuse to deal with them in respect
to any plant that is now nonunion. The president informs the com-
mittee of it being assured that any and all their nonunion works can
be maintained as heretofore; and that as to the latter mills, they would
refuse to treat with the association if scales or propositions were pre-
3830 UNITED STATES STEEL, CORPORATION.
sented for such works. The president is of the opinion that when the
presidents get back they ought to be in a position to know exactly
what our poHcy is and be able to take the matter into their own hands.
There was considerable discussion on this subject, and finally the
chairman stated as follows:
The first question to consider is, What, if any, answer should be
made if the association sends representatives to this company direct ?
So far as we understand, this committee is in favor of sajang to such
representatives that this is a question that pertains to the business of
the local company, and we do not undertake to instruct or interfere
with the business of the subsidiary companies. This corporation is
but a stockholder, and only intends to advise, the same as any stock-
holder.
The next question is, Should we establish a rule and announce that
rule to presidents, viz, that they are authorized to take up the
question and dispose of it promptly on the basis that under no
circumstances will any union be recognized where there are no unions?
It has been suggested, bv some of the presidents that they ought to
have this authority, feeling that they are authorized to take that
position and adhere to it. It has been suggested in this committee
that when that question comes up the president of the subsidiary
company should reply that he wished to consider and would niake
answer, the next day, and in the meantime could take it up with the
president of this company, and then finally report to the representa-
tive that the matter had been carefully considered and the decision
reached is so and so.
To this last proposition the president commented that it would
then be perfectly clear that such president had taken it up with this
corporation.
The chairman stated, however, that if he could be as certain of the
attitude of the association as the president he should not have much
trouble over the question.
The chairman called attention to the fact that the association has
already advertised that it purposes to deal with the subsidiary
companies of the corporation as one proposition, and they purpose
to extend the unions mto all of the works in which the corporation is
interested ; that it was stated at the meeting of the presidents that if
that position was adhered to and met opposition the association
would very likely order a strike in all of the union' mills.
The president believes such a strike to be remote possibility, and
in this Mr. Reid and Mr. Converse agree with the president.
The chairman observed that if they were wrong there is a possibility
of a big strike.
Mr. Converse feels that pubEc opinion would be with us inasmuch
as we had not attempted to crush unions but had simply accepted the
various situations as they were; that we had left the management at
the individual plants just as heretofore and advised the local officers
to use their judgment. He pointed out that we are assured by certain
Presidents that they can run everything in their nonunion plants. He
rinly beUeves that the association would never attempt to call out
their men at the plants ; that if such were the case he would be in favor
of running aU we can and feels certain that the final result would be
entirely in our favor.
UNITED STATES STEEL COEPOBATION. 3831
In brief, the position of Mr. Roberts is that if the representatives
come to this corporation they shall be referred to the local company;
that the presidents should not arbitrarily decide, but rather state that
the matter would be considered and an answer given later; that then
it could be taken up by the local board and considered. Mr. Roberts
does not beheve in estabUshing a hard and fast rule until we knowwhat
the association wants. When the matter is actually presented they
can then come to a decision. We can then be positive as to just what
is fair and what ought to be done. In other words, Mr. Roberts does
not approve of instructing the presidents to do something before they
reach the bridge.
The president informs the committee that there is in the air a well
defined feeling that the corporation is indifferent as to fighting the
extension of the labor unions.
On a vote being asked, on the question of whether or not the mem-
bers of the committee would approve of fighting the thing out if a
general strike were ordered, of the members the majority voted
affirmatively, one did not vote, another voted in the negative. An-
other member stated in reply that he would vote in favor of not recog-
nizing labor unions anywhere but feels that if 50 per cent of the works
were union it would be rather inconsistent not to recognize them in
the other 50 per cent.
After some further discussion Mr. Converse put this proposition :
That as a matter of fact it is not a question of finessing the situation
except up to a certain point; that the very worst the association can
do is with about 33J per cent and he beheves it will not do it with that
low percentage; that if our president says to the presidents that they
will please understand that the United States Steel Corporation is a
large financial institution and it expects you to go ahead now and
handle this situation just exactly as if the United States Steel Cor-
poration did not exist, they will be very careful not to get into trouble.
This met the unqualified approval of the president, Mr. Steele, and
Mr. Reid.
Mr. Roberts objects to the situation being thrust upon us that fast.
Before the association comes forward, we should make a positive
announcement as to what we would do or not do. The following
suggestion brought forth by Mr. Steele was finally voted upon and the
president instructed to convey it to the president :
That we are unalterably opposed to any extension of union labor
and advise subsidiary companies to take firm position when these
questions come up and say that they are not going to recognize it, that
is, any extension of unions in nulls where they do not now exist; that
great care should be used to prevent trouble and that they promptly
report and confer with this corporation.
June 25, 1901.
labor matters.
The president stated that quite a number of questions have arisen
between the various presidents and himself since the last meeting of
the presidents and he had disposed of such questions as they came up
in accordance with our previous position.
The president believes the labor question is in splendid shape; that
it is his information that we are going through this trying period of
3832 ITXITED STATES STEEL, CORPOKATION.
the first of July Avithout any serious trouble. It is probable that we
may have some trouble with the American Sheet Steel Co., but chances
are we Avill have no difficulties.
The president stated that Mr. Bufimgton, president of the Illinois
Steel Co., wanted to take pretty radical measures with certain of his
merchant mills, but the president advised him not to do so. The
president stated that the KepubUc Steel Co. had asked him to post-
pone acceptance of scale until the first week of July, but that he had
refused. He stated that the association appears to be a httle slow in
presenting scales.
July 1, 1901.
LABOR.
The president reported that the scales of the association were signed
for the American Tin Plate Co., that the demand was made of the
sheet company, that all of the mills of the company, union and non-
union, should'sign the scale; that they then sent for the manager of
the hoop company and notified him to the same effect. The managers
of the sneet and hoop companies declined to sign for nonunion mills,
and the consequence is but 50 per cent of the sheet and 60 per cent of
the hoop and 75 per cent of the National Steel Mills were running this
morning. All of the tin-plate as well as the mills of the other com-
panies were running. The union mills of the sheet and hoop com-
panies were out. The scales have not been presented to the National.
The question now before the committee was as to the action now to
be taken. The president, Mr. Converse, Mr. Edenbom, and Mr.
Steele thought it would be well to take no action, thinking that the
association has a weak stand and that our position is a very good one,
inasmuch as no arbitrary stand has been taken by the companies,
but simply a proposal to continue business this year the same as last;
that is, signing the scales for the union mills only. The president
thought that the very worst that could happen would be the calling
out of our nonunion men on a sympathetic strike, but he believed
that there was a very remote chance of the association being able to
do so. Mr. Roberts is doubtful about some of the mills reported as
nonunion ; he fears that there are a great many union men scattered
through them. Mr. Roberts stated his position again as to the incon-
sistencA' of signing the union scales in 50 per cent and refusing to sign
in the balance. Tie states that if the union is a bad thing, wipe it
out, and that it is a sign of weakness to do otherwise. Mr. Steele
pointed out that Mr. Shaffer has no standing whatever when he asks
that scales be signed for nonunion men because he is not a repre-
sentative.
There was no definite action deemed necessary to be taken at this
meeting regarding the situation, and the subject was laid over until
the next meeting, when it was probable the president may have some
report. 'SLr. Roberts believed that the presidents of the companies
interested should have been on the scene rather than allowed negotia-
tions to be conducted by the mill superintendents. The chairman
was not so sanguine as the president regarding the outcome and
beheved that we should be kept fully posted as to conditions. ( 4
united states steel cobpoeation. 3833
July 2, 1901.
LABOE.
The president presented aletterfromMr. T. J. Shaffer, president of the
amalgamated association addressed to Mr. Warner Arms, vice president
of the American Tin Plate Co., in which the statement was made that if
the matter of dispute in the sheet and hoop companies was not ad-
justed by the 8th instant, he would call out tne men in the mills of the
tin plate and others who had already agreed to the scales. The
president called for opinions of the committee as to whether or not the
members would be in favor of conceding the three mills to the asso-
ciation. The chairman answered in the affirmative and stated that in
liis opinion it would be a pretty good way out of a bad thing, and
thinks that this is the very worst time of the very worst year to have
any trouble. j\Ir. Reid concurs in this. Mr. Converse is not averse
to letting them have the mills above referred to, because it is a good
way out of a bad situation. Mr. Edenborn would not give way one
inch. j\Ir. Roberts stated that he would fully agree with Mr. Eden-
born or he would be willing to concede any nonunion mills in com-
panies that now have any union mills, or he would vote in favor of
wiping out the whole tiling in all the mills, but believes under the
condition to-day it would be advisable not to do so. Mr. Edenborn
stated that a concern operating with a union is pretty badly handi-
capped. The president suggested the advisability of sending Mr.
Preston to Pittsburgh to-mght to size up the situation and see
whether or not he can draw any conclusion as to the advisability of
our considering the concession of these three mills.
It was finally decided to defer the discussion of the subject until
after the regular scheduled meeting of the board of directors of this
company to be held this afternoon.
LABOR.
There was presented to the meeting a rough draft of letter drawn
by Mr. Steele embod3dng an answer it was proposed to send to Mr.
Shaffer over the signature of Mr. Arms in reply to his letter.
It was the general opinion of the members present that while the
answer was good in main, yet it should be modified in certain respects.
It was finally suggested that the chairman dictate another letter,
which was done, and met the approval of the committee present.
Upon motion, the president was instructed to advise Mv. Arms to
write a letter in accordance with copy handed to the president. It
having been learned that Mr. Arms left the office for the daj', the presi-
dent stated he would see him the next day, hand him the copy, and
give him such instructions as the committee desired.
Mr. Edenborn is of the impression that we should stand where we
are to-day. Mv. Reid beheves if we take that position the tin workers
would be called out, and we really ought to be careful what we do this
year. The chairman stated that he would be willing to concede two
mills as union mills, to sign the scale for the !McKeesport mill and to
keep it shut do-\vn.
INDEX OF FINANCE COMMITTEE MINUTES, AS EX-
TRACTED.
Note.— The book from which the following minutes were taken is labeled " Finance committee minutes
Apr. 10, 1901, to Dec. 29, 1903," but the book includes minutes from Apr. 10, 1901, to Deo. 27, 1904.
Acme Harvester Co., purchase of, suggested September 27, 1904.
American Bridge Co. :
Acquisition of, reported by Mr. Bacon at meeting of April 25, 1901.
Contract for coal supply approved January 17, 1905.
American Iron & Steel Association, $6,000 subscribed October 4, 1904.
American Protective Tariff League, $2,000 subscribed to, at meeting July 1, 1902.
American Sheet & Tin Plate Co., and American Can Co., contract recommended
April 11, 1905.
American Sheet Steel Co., power to Murray to vote at meeting of, at meeting April 8,
1902.
American Steamship Co., requested to transfer all property to Pittsburgh Steamship
Co., at meeting of May 16, 1901.
American Steel & Wire Co.:
South side property sale referred to Frick and Gary at meeting March 3, 1903.
South side property sold at meeting June 9, 1903.
Contract for coal supply approved January 17, 1905.
American Telephone & Telegraph Co., $1,000,000 notes purchased July 24, 1906.
American Tin Plate Co., rebate circular discussed at meeting January 27, 1903.
Arragon Mine purchase for National Tube Co., compensation of Samuel Mather, Cleve-
land, approved at meeting February 4, 1902.
Bellaire Steel Co., bonds, purchase of $150,000 authorized at meeting May 6, 1902.
Bessemer Steamship Co., of West Viiginia:
Acquisition of, reported by Mr. Bacon at meeting of April 25, 1901.
Requested to transfer all property to Pittsburgh Steamship Co., at meeting of May
16, 1901.
Bonds, $767,000 transferred to United States Trust Co., as trustee, at meeting May 31,
1904.
Bonds, purchase of $1,000,000, authorized June 28, 1904.
Bonds, purchase of, reported by Mr. Perkins, July 5, 1904.
Bonds, $2,500,000, purchased February 1, 1905.
Bonds, United States Steel Corporation 5 per cent sinking fund, treasurer authorized to
purchase $1,000,000 at meeting August 24, 1909.
Buffalo and Susquehanna mine expenditure, $10,625,000, recommended to be made
by Oliver Iron Mining Co., for mining ore in, at meeting May 4, 1909.
Campaign subscriptions, resolution to obtain opinions of lawyers as to legality adopted
April 10, 1906. (See Contributions, etc.)
Canada plant, letter of President Farrel in re building, etc., at meeting November 16,
1909. 6. , 6
Capital expenditures by subsidiary companies recommended at meeting February 4,
Capital expenditures of subsidiary companies recommended at meeting February 10,
Capital expenditures, $9,000,000 charged off for same, November 28, 1904.
Carnegie Steel Co., and Pittsburgh Steel Co., contract for latter's supply of billets
recommended, April 11, 1905.
Carnegie Co., power to Murray to vote at meeting of, at meeting April 8, 1902.
Cement manufacture, report on, at meeting March 10, 1903.
Cement plant at Pittsburgh, installation recommended May 15, 1906.
Cement properties consolidation recommended May 22, 1906.
Central Trust Co., of New York, bond of $1,000,000 to guarantee it against liability for
waiving clause in indenture given by Duluth, Missabe & Northern Railway Co., at
meeting April 2, 1903.
Champion Iron Mines purchase discussed and passed upon at meetings December 10,
3834
UNITED STATES STEEL COBPOBATION. 3835
Chicago, Cinciimati & Louisville Railroad Co., suggested acquisition of, at meetiag
February 24, 1910.
Chicago, Lake Shore & Eastern Railway Co.:
Matter of treating accounts referred to chairman (George W. Perkins) with power
at meeting November 26, 1901.
Bonds, $9,000,000 guaranteed and sold to Wm. A. Reed & Co., by United States
Steel Corporation, June 22, 1909.
Clairton Steel property referred to Gary at meeting March 10, 1903.
Clairton Steel Co., stock acquisition by Crucible Steel Co., and Mr. Snyder at meeting
March 17, 1903.
Clairton property sale of 55 per cent to United States Steel Corporation reported at
meeting March 19, 1903.
Clairton property, committee appointed to report on acquisition, at meeting April 19,
1904.
Clairton Steel property form of contract adopted April 29, 1904.
Clairton Steel Co., stock transferred to United States Trust Co., in trust for United
States Steel Corporation at meeting May 24, 1904.
Clairton land, 143 acres purchase recommended for $1,000,000, at meeting January
17, 1905.
Clairton land purchase reported January 31, 1905.
Coke shortage and purchase recommended by President Lyiich November 22, 1904.
Colonization plan for mines and Duluth & Iron Range Railroad Co. referred to at
meeting August 16, 1910.
Colonization plan not approved at meeting November 1, 1910.
Connellsville Central Railroad Co., recommendation of conveyance to Bessemer
Railroad, at meeting January 20, 1903.
Connellsville coal land, offer for, referred to at meeting December 22, 1903.
Connellsville, $1,500,000 for 1,000 coke ovens, referred to at meeting June 26, 1904.
Contribution to prominent politicians' campaign expenses for reelection referred to
chairman April 10, 1906.
Contributions, political or charitable, opinions of John G. Johnson, Philadelphia,
and David T. Watson, Pittsburgh, that this corporation has no right to make same,
at meeting June 12, 1906.
Contributions, political, etc., resolution not to make, at meeting June 12, 1906.
Convict labor, letter of Mr. Dickson, in re. May 4, 1909.
Corporations' securities, affiliated with United States Steel Corporation, list of, for sale
submitted at meeting December 17, 1901.
Cost of carrying ore of Pittsburgh Steamship Co., Mitchell Fleet, and Wilson Fleet,
stated November 10, 1903.
Cotton, Joseph P., $2,000 extra compensation, at meeting November 26, 1907.
Cramp, Wm., & Sons, Ship & Engine Building Co., subscription $550,000 notes of,
authorized at meeting April 28, 1903.
Cayuna Range timberland purchase by Oliver Iron Mining Co., recommended Febru-
ary 24, 1910.
Dering Coal Co., contracts to supply coal to various companies approved January 17,
1905.
Dickson, W. P., letter to President Corey at meeting December 8, 1903.
Duluth plant, $10,000,000 recommended for, September 28, 1909.
Duluth, Missabe & Northern Railroad Co. , bonded debt referred to at meeting of April
25, 1901.
Duluth & Iron Range Railroad Co., amount of capital stock and dividends to be de-
clared referred to Mr. Gary with power at meeting November 18, 1901.
Duluth, Missabe & Northern Railway Co., bond $1,000,000 given to Central Trust Co.
of New York, to guarantee it against liabiUty for waiving clause in indenture of
railway company, at meeting April 2, 1903.
Duluth railroad connections referred to at meeting July 3, 1907. .
Duluth & Iron Range Railroad Co., colonization plan referred to at meeting August
16, 1910.
Elk Creek Dock Co. , recommendation of conveyance to Conneaut Dock Co. , at meeting
January 20, 1903.
Employees of United States Steel Corporation, number and salaries stated at meeting
December 2, 1902.
Export bureau and foreign sales department, organization suggested at meeting July
28, 1903.
Federal Steel Co. :
Power to MacVeagh to vote at meeting of, at meeting April 8, 1902.
Discussed at meeting November 25, 1902.
31572— No. 53, pt. 2—12 7
3836 UNITED STATES STEEL CORPORATION.
Finance committee to pass upon contracts entered into by subsidiary companies, see
meeting April 28, 1903.
Frazier, Bartlett & Co., elevators, formation of small company to operate, discussed at
meeting November 25, 1902.
Several coke companies consolidated under name of, at meeting May 29, 1901.
Purchase of 330 acres steam coal land recommended at meeting February 10, 1903.
Gary constructions, expenditure of $6,210,000 recommended May 4, 1904.
Hill ore properties, negotiation with Mr. Hill at meeting January 27, 1903.
Hill railroads, guaranty of minimum tonnage, referred to Frick at meeting March 10,
1903.
Hill ores, report as to acquisition at meeting February 20, 1906.
Home for Disabled Seamen, $5,000 subscribed to, at meeting July 1, 1902.
Illinois Co., building of cement plant at BufBngton recommended May 15, 1906.
Illinois Steel Co.: m t. i • \
Matter of treating accounts referred to chairman (George W. Perkins) at meeting
November 26, 1901.
Contracts for coal supply approved, January 17, 1905.
Debentures, $10,000,000, owned by corporation, sold to J. P. Morgan at meeting
June 26, 1911.
Importations of iron and steel in 1902 and 1903, letter in re and plan for keeping in
touch with future sales read at meeting April 11, 1905.
International Harvester Co. :
Proposed contract referred to (Jary, Perkins, and Ream at meetings December
10-17, 1902.
Special committee appointed August 30, 1904.
DecUnation of proposition, September 20, 1904.
Report of failure to reach agreement, November 28, 1904.
International Nickel Co., contract reported at meeting January 26, 1904.
Inventories, recommendation as to marking down, at meeting December 18, 1903.
Investment in United States Steel Corporation securities authorized by trustee and
questions concerning transfer referred to chairman and secretary of board, with
power, at meeting December 13, 1904.
Laborers and wages, December 2, 1902.
Lake Superior Consolidated Iron Mines:
Acquisition of, reported by Mr. Bacon at meeting of April 25, 1901.
Question of who shall be stockholder of record referred to Mr. Gary, with power,
at meeting November 18, 1901.
Manufacturing property of subsidiary companies to be leased and operation continued
by leases, approved at meeting June 2, 1903.
Masontown & New Salemville RaUroad Co., deal with Pennsylvania Railroad for
building northerly end to Brownsville, at meeting February 24, 1903.
Menominee Transportation Co. requested to transfer all property to Pittsburgh Steam-
ship Co. at meeting of May 16, 1901.
Menominee Transit Co., resoluton to be adopted by directors of United States Steel
Corporation for purchase of, at meeting May 29, 1901.
Merchant-marine legislation subscription to campaign referred to chairman, March 6,
1906.
Mesabi Range ore property acquired from Chemung Iron Co., at special meeting March
3, 1903.
Michigan Central Railroad Co. :
Bonds, purchase of, authorized at meeting May 13, 1902.
Bonds, $5,000,000, purchased at meeting June 3, 1902.
Bonds, sale of $5,000,000, at meeting December 9, 1902.
Miller, W. E., & Co., contract with, for purchase of merger stock of Shelby Steel Tube
Co., at meeting August 8, 1901.
Minnesota Steamship Co. requested to transfer all property to Pittsburgh Steamship
Co. at meeting of May 16, 1901.
Mining companies in Minnesota and Michigan, amalgamation plan approved at meeting
August 27, 1901.
Morgan, J. P. & Co.:
Resolution in re, at meeting January 6, 1902.
Contract with, adopted at meeting March 7, 1902.
Special committee appointed to surrender contract of April 1, 1902, at meeting
November 18, 1903.
Letter to, signed by Gary, at meeting December 1, 1903.
Assignment to, of certificate for $30,000,000 10-60 5 per cent bonds were ex-
changed for capital stock of Tennessee Coal, Iron & Railroad Co., at meeting
November 6, 1907.
UNITED STATES STEEL COKPOEATION, 3837
Monongaliela Coal & Coke Co., contract with American Steel & Wire Co., recommended
March 8, 1910.
Mutual Transportation Co. :
Requested to tomsfer all property to Pittsburgh Steamship Co. at meeting of May
16, 1901.
Resolution to be adopted by directors of United States Steel Corporation for
purchase of, at meeting of May 29, 1901.
National Tube Co., contract for coal supply, approved January 17, 1905.
National Wire Corporation of New Haven, Conn., bought for $650,000 at meeting of
October 8, 1907.
Negannee mine, purchase of one-third interest for not exceeding $500,000 advised at
meeting June 21, 1901.
Norfolk & Western Railroad debenture bonds, chairman and treasurer authorized to
invest $1,000,000 in, at meeting May 29, 1906.
Notes of subsidiary companies authorized November 11, 1904.
Oliver Iron Mining Co. ;
Expenditure $10,625,000 recommended for mining ore in Buffalo and Susque-
hanna mine.
Transfer to United States Steel Corporation, referred to at meeting of April 25, 1901 .
Purchase of property of Champion Iron Mining Co., discussed at meeting Novem-
ber 25, 1902.
Discussed at meeting January 20, 1903.
Oliver ore properties discussed at meeting January 20, 1903.
Pennsylvania Railroad Co. :
$5,000,000 notes subscribed for May 15, 1906.
Deal with, for building northerly end of Masontown and New Salemville R. R. to
Brownsville, at meeting February 24, 1903.
Negotiations in re Wabash R. R. Co., reported December 6, 1904.
Pig iron:
40,000 tons from Valley Furnaces and 30,000 tons from Mr. Snyder, at meeting
May 26, 1903.
25,000 tons to be purchased January 10, 1905.
Shortage in Pittsburgh district discussed January 10, 1905.
25,000 tons purchased January 17, 1905.
25,000 tons purchase authorized February 7, 1905.
33,000 tons purchase authorized April 4, 1905.
8,000 tons purchased June 26, 1906.
40,000 tons purchased February 8, 1910.
Purchase of 2,550,000 tons referred to chairman and president at meeting February
24, 1910.
Pittsburgh Steamship Co.:
Purchased by, of stock of Bessemer Steamship Co., referred to at meeting of April
25, 1901.
Resolution to be adopted by directors of United States Steel Corporation, for pur-
chase of, at meeting May 29, 1901.
Carrying cost stated at meeting November 10, 1903.
Requested to take transfer of property of Bessemer Steamship Co., American
Steamship Co., Mutual Transportation Co., Menominee Transportation Co., at
meeting of May 16, 1901.
For purchase of Bessemer fleet, $8,500,000 paid to John D. Rockefeller at meeting
November 18, 1902.
Contract concluded April 25, 1905.
Contract for supply of coal approved, April 5, 1905.
Pocahontas Coal Co., lease of 50,000 acres and building of ovens referred to president
and chairman with power, at meeting December 7, 1901.
Pocahontas Coal & Coke Co., construction of coke ovens pursuant to lease Norfblk &
Western Railway Co., and Illinois Steel Co., approved at meeting January 3, 1902.
Pocahontas Coke question referred to Gary, Frick, Corey, and Perkins at meeting Octo-
ber 27, 1903.
Pocahontas Coke Co., special committee approved recommendations of President
Lynch dated October 20, 1903, at meeting November 4, 1903.
Pocahontas field report of output and cost of production for month of August submitted
at meeting September 19, 1905.
Prices considered at special meeting June 3, 1908.
Price of rails, Gary and Corey appointed to make arrangement with forejign producers
as to price in neutral markets, November 1, 1904.
Profits schedule at present prices submitted April 27, 1909.
3838 UNITED STATES STEEL CORPORATION.
Protection and prosperity, book, subscription of $4,000 requested was referred to
chairman, January 17, 1911.
Railroad companies at Milwaukee and other mills, consolidation or dissolution of, re-
ferred to chairman with power (George W. Perkins) at meeting September 2, 1902.
Reed, Hon. Thomas B., voted $50,000 compensation in Mixer patent suit at meeting
May 20, 1902.
Report by president of operation of plants and foreign sales, February 7, 1905.
Rochester plant of American Bridge Co., sale recommended at meeting December 30,
1902.
Rogers, Brown & Co., assignment of lease of 100 acres not recommended at meeting
February 24, 1910.
Schoen Steel Wheel Co., offer to sell for $5,000,000, October 8, 1907.
Seamless tube plants concentration of Shelby Steel Tube Co., recommended April 17,
1906.
Semifinished products:
Recommendation not to sell to outsiders, etc., at meeting April 5, 1904.-
Report as to sales to competitors adopted June 26, 1906.
Shades Mountain ore land:
Option suggested, February 8, 1910.
Letter from Crawford as to options referred to chairman and president March 29,
1910.
Sharon Steel Co., discussed at meeting January 20, 1903.
Sharon Tin Plate Co.:
Purchase of 2,985 shares out of 3,245 shares recommended at meeting January 28,
1903.
Purchase of 2,985 shares by American Tin Plate Co. reported at meeting Febru-
ary 10, 1903.
Shelby Steel Tube Co.:
President negotiating with, at meeting of June 13, 1901.
Authority to sign contract for purchase given at meeting June 20, 1901.
Bill of Gilbert, Hill & Vanderveer approved at meeting October 27, 1903.
Special committee on concentration oi seamless tube plants reported September
26, 1905.
Shenandoah Steel Wire Co., adjacent to Alleghany Steel Co., referred to at meeting
September 11, 1906.
Sinking-fund first-mortgage bonds:
$3,040,000 deposited ifor purchase of, at meeting June 10, 1902.
$2,643,000 for account of purchase, at meeting June 17, 1902.
Southwestern Connellsville Coke Co., matter of treating accounts referred to chair-
man (George W. Perkins), with power, at meeting November 26, 1901.
Sturgiss, Hon. George C, Morgantown, W. Va., loan to, at meeting July 6, 1908.
Subsidiary companies, $2,333,000 recommended for expenditure for timber lands,
ore, cars, etc., at meeting November 11, 1902.
Swank, James M., letter for subscription to American Iron & Steel Association, October
4, 1904.
Tennessee Coal, Iron & Railroad Co.:
Stock exchanged for ten-sixty 5 per cent gold bonds of United States Steel Corpo-
ration, at meeting October 23, 1907.
Purchase discussed, November 2, 1907.
Purchase discussed, November 3, 1907.
Purchase recommended, November 4, 1907.
Referred to chairman, November 5, 1907.
Capital stock to be obtained for $30,000,000 ten-sixty 5 per cent bonds, through
J. P. Morgan & Co., authorized at meeting November 6, 1907.
Stock, recommendation to directors in re purchase of, at meeting November 6,1907.
Tin-plate companies, consolidation referred to Corey, Gary, and Frick at meeting Octo-
ber 27, 1903.
Tin-plate contract between American Tin Plate Co. and American Can Co., anproved
January 12, 1904. ^^
Trenton Iron Co., bought at meeting July 5, 1904.
Troy plant, at Breaker Island, to be purchased, at not exceeding $1,000,000, atmeeting
August 26, 1902.
Troy Steel Products Co.:
Purchase of, at $1,100,000, approved at meeting December 9, 1902.
Discussed at meeting January 20, 1903.
Purchased by American Steel & Wire Co., at meeting February 17, 1903.
Troy Steel Co. 's Breaker Island plant, recommendation for dismantling, at meeting
January 15, 1907. ^
UNITED STATES STEEL COEPOEATION. 3839
Union Pacific Railway Co., $2,000,000 loaned to, at meeting July 24, 1906.
Union-Sharon contract submitted and chairman instructed to execute same, at meet-
ings December 10-17, 1902.
Union-Sharon plants, acquisition of, discussed at meetings December 10 to 17, 1902,
Union Steel Co. :
Nominal organization in New York arranged at meeting June 2, 1903.
Debenture bonds, chairman and treasurer authorized to invest $1,000,000 in,
at meeting May 29, 1906.
Universal Portland Cement Co. :
Consolidation of cement properties recommended May 22, 1906.
Extension recommended November 10, 1908.
Wabash Railroad Co.:
Negotiations in re with Pennsylvania Railroad Co., reported December 6, 1904,
Letter from President Ramsey of, to Judge Reed, and letter from President Cas-
satt referred to chairman for action, February 28, 1905.
Wabash-Union Railroad:
Contract referred to special committee at meeting April 28, 1903.
Contract interview with Mr. Cassatt reported January 17, 1905.
Contract consultation with President Cassatt and letter received from Mr. Gould,
reported at meeting January 31, 1905.
Special committee negotiations approved April 4, 1905.
Wage scale of H. C. Prick Coke Co., cut in referred to president, December 1, 1903,
Wages, 10 per cent cut recommended, December 8, 1903.
Wage question, cablegram from J. P. Morgan read April 27, 1909.
Walker land purchase included further tract approved December 20, 1910.
Walker land offer of $2,000,000 accepted by Walker and approved December 13, 1910.
Youngstown Iron, Sheet & Tube Co., purchased from Henry C. Frick 2,000 shares, at
meeting February 17, 1903.
INDEX OF MINUTES OF FINANCE COMMITTEE.
American Can Co. :
Discussion about arrangement with, June 29, 1904.
Reduction in price of tm plate requested, January 5, 1904.
Proposed contract with American Tin Plate Co., January 12, 1904.
Negotiations with, July 5, 1904.
Negotiations with, July 13, 1904.
Proposed contract with Sheet & Tin Plate Co., April 11, 1905.
Acme Harvester Co., advisability of purchasing, September 27, 1904.
American Sheet & Tin Plate Co.:
Saving expenses, July 25, 1905.
Purchase from Colorado Fuel & Iron Co., 10 sheet and 10 tin mills, December 12,
1905.
American Protective Tariff League, subscription $3,000, June 24, 1902.
Armor plate, December 15, 1903.
American Refractories Co., referred to at meeting of September 27, 1910.
American Ship Building Co., sale of 500 shares, January 10, 1905.
AUis-Chalmers Co., loan, $200,000.
Bonus fund:
Preferred stock fixed at $56 a share, January 12, 1904.
February 9, 1904.
Buffalo Boiler Tube Plant, purchase of, 'February 16, 1904.
By-laws, March 1, 1910.
Blair Land Co., purchase of 40 lots, April 4, 1905.
Blast furnace, cost of building one at Mingo, $1,090,000, March 17, 1905.
Clairton Steel Co.:
October 11, 1907, purchase of Campbell tract.
Proposition to acquire, March 17, 1903.
March 19, 1903.
Progress in respect to negotiations for purchase, April 13, 1904.
Reported in favor of acquisition, April 19, 1904.
Clairton property, note progress, April 28, 1904.
Form of contract submitted, April 29, 1904.
Purchase from Frick of 143 acres of land, January 10, 1905.
Purchase from Frick of 143 acres, January 31, 1911.
10 lots bought, April 4, 1905.
3840 UNITED STATES STEEL COKPOBATION.
Coal lands:
Special report by Lynch regarding purciiase of 16,000 acres, May 23, 1911.
May 3, 1911. Documents referred to this meeting should be subpoenaed.
Purchase of, July 13, 1904.
Option, July 21, 1904.
Option, July 26, 1904.
Purchase tf, November 1, 1907.
December 6, 1907.
Purchase of tract of Brooke County, W. Va., April 18, 1911.
Purchase of 970 acres in Connellsville district, made by H. C. Frick and others,
December 13, 1907.
December 27, 1907.
Contract between Illinois, American Steel & Wire Co., American Bridge Co., and
National Tube Co. with Deering Co. for 50-year supply, Jamuary 17, 1905.
MeetiQg of April 11, 1911; coal lands referred to.
Contract between Pittsburgh Coal Co., Birmingham, Ala., April 1, 1905.
16,000 acres of Pennsylvania, July 25, 1905.
Purchase of Pittsburgh Coal Co., May 23, 1911.
Recommendation to purchase 3,050 acres, January 5, 1909.
4,000 acres, February 3, 1909.
421 acres, November 16, 1909.
Advice to the Deering Coal Co., February 2, 1909.
Proposition by Hammond, May 4, 1909.
Report by President Lynch, regarding purchase of 16,000 acres, May 23, 1911.
Kelley Coal Co., purchase, August 24, 1909.
Connellsville plant, August 16, 1910.
Colorado Fuel & Iron Co., purchase of tin-plate machine, December, 1905.
Contribution :
$5,000 to Society of Chemical Industry, January 6, 1904. •
$5,000 to reception committee of British Iron & Steel Institute meetiog, March
22, 1904.
Pittsburgh Post, August 2, 1910.
January 26, 1904, $1,000 to American Society for Testing Materials.
Coke:
Purchase of 1,000 tons of Pocahontas, November 22, 1904,
Shortage of, December 6, 1904.
Purchase of 25,000 tons, December 13, 1904.
December 27, 1904.
Hecla Coke Co., purchase of, March 29, 1905.
Corporation law, letter from De Forest Bros, in regard to Senate bill 1306, July 5, 1904.
Cramp & Sons, William, subscription, $5,000,000 wortifci of notes, March 8, 1904.
Carnegie Co., proposed contract with Pittsburgh Steel Co. for billets, April 11, 1905.
Concentration of seamless tube plant, September 26, 1905.
Congress, cooperation of public officials and Representatives in, December 29, 1905.
Curtis, George B., November 21, 1910.
Convict labor, Tennessee Coal & Iron Railroad Co., May 4, 1909.
Competition, proposed action of National Tube Co., December 22, 1903.
Chicago, Lake Shore & Eastern Railroad Co.:
Acquisition of, April 27, 1909.
Guarantee of bonds, June 22, 1909.
Dismantling plant:
Star Mill property, of Pittsburgh, February 19, 1907.
Empire Bridge Works, Rochester, N. Y., January 24, 1910.
Sharron Tube plant, January 31, 1905,
Hainsworth plant, Pittsburgh, April IS. 1905,
Deering Coal Co.:
Letter from Knapp to Stetson, April 2, 1909.
April 20, 1909.
Duluth, Missabe & Northern Railway Co., construction of line to Woodbridge mine,
November 3, 1909.
Duluth, Virginia & Rainy Lake R. R., Sheen Steel ^\^leeI Co., August 27, 1907.
Eastern Tube Co., five years' lease, April 13, 1904.
Farrell, J. A., letter from, April 11, 1905.
Hudson Trust Co., December 10, 1901, compensation.
Helena, Ala., tube plant:
November 15, 1907.
December 27, 1907.
Hill, A. J., April 18, 1905.
UJNlTJiiU BXATES STJfiJfiLi COKPOBATION. 3841
Hill lease, March 12, 1907.
Harvey Steel Co., sale of stock, November 21, 1905.
International agreemerit of price of rails, page 350.
International Harvester Co.:
August 30 and September 7, 1905.
Trenton Iron Works, September 20, 1904.
• Working agreement, September 27, 1904.
Discharge of committee, December 6, 1907.
International Nickel Co.:
Contract with them referred to, showing the preference, January 26, 1904.
December 29, 1905.
Indiana plant:
Report in regard to Indiana plant, conference of railroad officials regarding
removal of plant, January 9 and 15, 1906.
Investment:
Security held, April 13, 1904.
Sale of gold bonds. May 31, 1904.
Purchase of gold bonds, June 28, 1904.
One million gold bonds purchased, July 5, 1904. ■
Trustees to invest any securities of the company, December 20, 1907.
Interest:
Reduction of rate of subsidiary companies, March 22, 1904.
On bank balances referred to, May 9, 1911.
Kerr, D. G., letter from, regarding Mahoney Ore & Steel Oo^, December 28, 1905.
Kellogg, Frank B., recommendation for exfra compensation, October 29, 1907.
Lorrame & West Virginia Railroad, referred to, December 13, 1910.
Lane, 0. E., elected in place of Thayer, April 14, 1911.
Lynch, letter from, March 22, 1911 (2).
Land near Chicago, purchase of tract on lake shore, September 5, 1905.
Lowellsville Limestone Co., purchase of interest in, December 19, 1905.
Labor. In this report the regular meetings of the executive committee are filled
with labor discussions, December 8, 1903.
Lutz, letter regarding the refusal to sell billets to Shelby Steel Tube Co., June 15, 1903.
Morgan & Co., J. P.:
Present by request, November 2, 1907.
Average interest on balance 2.6 per cent, January 12, 1904.
Morgan commission, etc., belief that the court would support the right of the
corporation to issue bonds for the concern, September 22, 1902.
Election of J. P. Morgan, jr., to board of directors of finance committee, May 25,
1909.
Surrender of contract, bond conversion, December 1, 1903.
Letter from Morgan regarding same, December 1, 1903.
January 6, 1902.
January 2, 1902,
Bond conversion deal, December 21, 1903.
Bond conversion deal, September 22, 1902.
Morgan town Tin Plate Co. works:
Purchase of, January 31, 1905.
Recommendation to pay $100,000, February 14, 1905.
Monroe ore property. May 12, 1903.
National Erectors' Association, March 21, 1911.
National Tube Co.:
Exchange of property with railroad company, December 13, 1907.
Agreement submitted, December 13, 1907.
Ore property:
Letter from Coke & Alcott, September 7, 1904.
Walker lands, December 13, 1910.
Piurchase of option in Hibbing district, December 13, 1907.
Proposed purchase of Whiteside, December 23, 1907.
Lease of Canistea property, January 17, 1905.
Ore, royalty on Clairton mines, February 14, 1905.
Ore boats, October 11, 1907.
Offer from Frick, to sell land of Clahton, January 17, 1905.
Pay roll, checks for, $75,000,000 cash on hand, November 1, 1907.
Pittsburgh limestone property, finance meeting, April 25, 1911.
Price ad]ustment:
May 23, 1911.
Steel products. May 23, 1911.
3842 UNITED STATES STjiJllj UUKI'OKATIUW.
Purchase of bonds:
Henderson farm property, for sale by A. & P. Roberts Co. and Philadelphia &
Reading Railroad, January 6, 1911.
Purchase bonds, January 12, 1904.
President's report:
Of operations and plants and foreign sales, September 13, 1910.
Trade conditions, etc., April 11, 1911.
Payment in cash instead of bonds:
September 20, 1904.
September 27, 1904.
Pennsylvania Railroad Co., arrangement with, page 369.
Pittsburgh Coal Co., April 25, 1905, contract with.
Price of structural steel, question of increasing, July 11, 1905.
Pig iron:
Letter from Pearly in re investigation of stocks in the country, November 10, 1904.
Purchase of, December 6, 1904.
Purchase of 25,000 tons, December 13, 1904.
Purchase of 25,000 tons, January 10, 1905.
Purchase of 25,000 tons, January 17, 1905.
Buy 40,000 tons, at $15.50 per ton, February 21, 1905.
Purchase 33,000 tons, at $15.50 per ton, April 4, 1905.
10,000 tons, $15, September 12, 1905.
40,000 tons, $15, September 19, 1905.
Purchase of patent of Kleenad Davis, December 22, 1903.
Passaic rolling mills, piu-chase of, March 7, 1905.
Resdon Iron Works, purchase of, as a place of distribution, for $250,000, recommended.
San Francisco, March 28, 1911.
Rock Island Railroad, objection by them of building 6-mile branch, July 13, 1904.
Rails, price of, in neutral market, November 1, 1904.
Railroad consolidation:
Letter from Mr. Ray, December 13, 1907.
Masontown & Mount Salem Railroad, Connellsville Central Railroad, and pur-
chase of Shamrock Branch, December 20, 1907.
Shortage of ore-carrying capacity on lakes, April 22, 1901.
Steel-car construction, April 23, 1901.
Shelby Tube Co.:
April 24, 1901.
Sale of Toledo and Albany plants, January 12, 1904.
January 26, 1904.
Swank, Jas. M.:
Letter October 4, 1904.
Letter January 12, 1911.
Semifinished product:
Selling policy, March 22, 1904.
Selling policy, April 5, 1904.
Tennessee Coal & Iron Co.:
Purchase of discussed, November 2, 1907.
Purchase of discussed, November 3, 1907.
Purchase of discussed, November 4, 1907.
Purchase of discussed, November 5, 1907.
Exchange of 1,200,000 bonds for $2,000,000 Tennessee Coal & Iron stock.
Traffic rate over Great Northern, March 21, 1905.
Trenton Iron Co.:
Proposition to purchase, June 7, 1904.
Proposition to purchase, June 14, 1904; reported progress.
July 5, 1904, purchase consummated.
United States Fidelity & Guaranty Co., agreement with, July 18, 1905.
Union labor, meeting of, June 17, 1901.
Westinghouse Machine Co., $200,000 on county contract, October 1, 1907.
Whitney coal deal:
July 25, 1905.
Stevens mine and lease, May 5, 1911.
Wm. Wharton & Co.:
Discussion of securing their plant, April 7, 1904.
Progress reported. May 10, 1904.
This meeting will show method of procedure of acquirement of property, May
24, 1904.
UNITED STATES STEEL COKPOEATION. 3843
•
Warehouse interest:
See meeting of August 2, 1904.
Purchase of Basset-Bresel Warehouse and stock at Cleveland, April 11, 1911.
Necessity for warehouse at San Francisco, March 20, 1911.
Wabash Union:
Contract, April 4, 1904.
December 6, 1904.
Interview with Cassatt, January 17, 1905.
Letter from Gould, January 31, 1905.
Wabash Railroad, letter from Ramsey to Judge Reid, February 28, 1905.
Wabash Steel Co., allowed use of track and cost of maintenance divided, July 18, 1905.
FINANCE COMMITTEE.
The book from which the following minutes were taken is labeled
"Fmance Committee Mmutes, April 10, 1901, to December 29, 1903,"
but the book includes minutes from April 10, 1901, up to December
27, 1904.
April 10, 1901.
Present: Robert Bacon, Henry H. Rogers, Norman B. Ream,
P. A. B. Widener, Elbert H. Gary, and Charles M. Schwab.
Francis L. Stetson and George W. Perkins were also present.
Mr. Perkins was invited to be present at the future meetings of the
committee, and for the present to keep the minutes.
April 12, 1901.
Present : George W. Perkins, acting secretary.
No quorum.
April 18, 1901.
Present : George W. Perkins, acting secretary.
April 25, 1901.
Present: George W. Perkins, acting secretary; Robert Bacon, and
Francis L. Stetson.
Mr. Bacon reported to the committee upon the subject of the
acquisition of the American Bridge Co. and the Lake Superior Con-
solidated Iron Mines Co. as authorized April 1, 1901, by contract
with J. P. Morgan & Co. Certificates of the capital stock of the
United States Steel Corporation in payment for the companies above
stated were issued as follows: 321,747 shares preferred stock United
States Steel Corporation for 292,497 shares preferred stock American
Bridge Co.; 317,699 shares common stock of United States Steel Cor-
poration for 302,507 shares common stock American Bridge Co., for
48,727.6742 shares of the capital stock of the Lake Superior Consoli-
dated Iron Mines (exclusive of such stock owned by John D. Rocke-
feller), 65,782.36017 shares of the preferred stock, and 65,782.36017
shares of the common stock, of the United States Steel Corporation.
This corporation is entitled also to receive —
1. Certificates for 244,573.6818 shares of Lake Superior Iron
Mines, for which payment should not be made in the capital stock of
this corporation at the rates and in the manner specified in said con-
tract with Mr. Rockefeller.
2. Certificates for 50,000 shares of the entire capital stock of the
Bessemer Steamship Co., of West Virginia, for which payment is to
be made, $8,500,000 in cash on or before May 1, 1902, with interest on
May 1, 1901, at the rate of 5 per cent.
3844 UKITBD STATES STEEL. CORPOKATION.
Mr. Bacon further stated that the Duluth, Missabe & Northern
Railroad Co., of which the total capital stock is owned by the Lake
Superior Consolidated Iron Mines, is bonded at $7,755,000, and the
Lake Superior Consolidated Iron Mines has also a floating debt of
about $5,106,649.73 owing to Rockefeller, and that the recognition
of such indebtedness was and is a part and condition of such contract
with Mr. Rockefeller.
Aggregate shares of the United States Steel Corporation transfer-
able under these resolutions, 395,956.8306 shares of preferred stock
and same amount of common stock.
Also 2,000 shares of the capital stock of the Oliver Iron Mining Co.,
and 2,217 shares of the Pittsburgh Steamship Co., for which are issu-
able 92,500 shares of preferred stock and 92,500 shares of common
stock of United States Steel Corporation.
Recommended that Pittsburgh Steamship Co. make and issue its
notes for $8,500,000, payable one year after date with interest at 5 per
cent, to order of Mr. John D. Rockefeller in payment for the purchase
of the stock of the Bessemer Steamship Co., which stock may be
pledged as security.
May 2, 1901.
Present; George W. Perkins, secretary; Robert Bacon.
May 16, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
Bessemer Steamship Co., American Steamship • Co., Minnesota
Steamship Co., Mutual Transportation Co., Menominee Transporta-
tion Co., requested to make transfer of aU their property and assets to
the Pittsburgh Steamship Co., upon terms and conditions set forth in
communication of Mr. James H. Hoyt to Francis L. Stetson, general
counsel, under date April 26, 1901.
May 23, 1901.
Present : George W. Perkins, secretary, Robert Bacon.
May 29, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
Committee recommended purchase of Shelby Steel Tube Co.
Several coke companies allowed to consolidate under name of
Frick Coke Co.
Resolution to be adopted by directors of United States Steel Co.
regarding purchase of Pittsburgh Steamship Co. from Menominee
Transit Co. and Mutual Transportation Co.
June 13, 1901.
Present: George W. Perkins, secretary; Robert Bacon; president
negotiating with Shelby Steel Tube Co.
June 20, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
Authority given to sign contract for Shelby purchase.
June 21, 1901.
Present: George W. Perkins^ secretaiy; Robert Bacon.
Advised purchase one-third interest Negannee Mine for not exceed-
ing $500,000.
united states steel coepokation. 3845
June 28, 1901.
Present: George W. Perkins, secretary, Robert Bacon; Francis L.
Stetson also present.
July 18, 1901.
Present: Robert Bacon in chair.
Offers made.
July 23, 1901.
Present: Robert Bacon in chair; Mr. J. P. Morgan also present.
Progress reported in Shelby Steel Tube Co. matter.
August 8, 1901.
Present: Robert Bacon in chair.
Contract W. E. Miller & Co., for purchase of merger stock of Shelby
Steel Tube Co.
One share of preferred stock United States Steel Corporation for
every two and two-thirds preferred stock of Shelby Steel Tube Co.
One share of common stock United States Steel Corporation for
every four shares common stock of Shelby Steel Tube Co.
Total Shelby Steel Tube Co. stock, $5,000,000 preferred stock and
$8,150,000 common stock.
August 27, 1901. '
Present: Robert Bacon in chair.
Plan approved by Mr. Stetson and Mr. MacVeagh for the amalga-
mation of mining companies in Minnesota and Michigan, in order to
have but two operating companies.
September 11 1901.
Present: Robert Bacon in chair.
September 17, 1901.
Present: Robert Bacon in chair.
September 24, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
October 2, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
October 10, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
October 2-3, 1901.
Present: George W. Perkins, secretary; Robert Bacon.
November 18, 1901.
Present : George W. Perkins in chair.
Resolved, That the question of the proper amount of capital stock
and dividends to be declared by the Duluth & Iron Range Railroad
Co. be referred to Mr. Gary, with power.
Resolved, That the question of who shall be stockholder of record
of certain shares of the Consolidated Mines be referred to Mr. Gary,
with power.
3846 united states steel coepokatiok.
November 20, 1901.
Present: George W. Perkins in chair.
Present: George W. Perkins in chair.
November 26, 1901.
November 26, 1901.
Present: George W. Perkins in chair.
Subject of Illinois Steel Co., Southwestern ConnellsviUe Coke Co.,
Lake Shore & Eastern Railway Co. as to matter of treating accounts
f eferred to the chairman with power.
December 3, 1901.
Present : George W. Perkins in chair.
December 7, 1901.
Present : George W. Perkins in chair.
Lease of 50,000 acres Pocahontas Coal Co. land on basis of building
1,000 ovens m 1902, 1,000 ovens in 1903, and 1,000 ovens in 1904,
10 cents per ton for coal and 15 cents per ton for coke, and minimum
basis of royalties to be as follows: 105,000 during 1903; 150,000 dur-
ing 1904, and 225,000 yearly thereafter, referred to president and
chairman with power.
December 10, 1901.
Present: George W. Perkins in chair.
December 17, 1901.
Present : George W. Perkins in chair.
List of securities owned by various corporations affiliated with the
United States Steel Corporation. J. P. Morgan & Co. requested to
take up subject of their sale.
December 24, 1901.
Present: George W. Perkins in chair.
January 3, 1902.
Present : George W. Perkins in chair.
Construction of 3,000 coke ovens pursuant to lease between Poca-
hontas Coal & Coke Co. and Norfolk & Western Railway and Illinois
Steel Co. approved.
January 6, 1902.
Present: George W. Perkins in chair.
Resolution in regard to conversation with J. P. Morgan & Co.
Present : George W. Perkins in chair.
Present: George W. Perkins in chair.
Present : George W. Perkins in chair.
Present: George W. Perkins.
Present : George W. Perkins in chair.
January 7, 1902.
January 14, 1902.
January 16, 1902.
January 20, 1902,
January 21, 1902.
united states steel coepobation. 3847
January 28, 1902,
Present : George W. Perkins in chair.
Febeuaey 4, 1902.
Present: George W. Perkins in chair.
$200,000 to Samuel Mather, of Cleveland, for his services in thr
purchase of the Arragon Mine for the National Tube Co.
Febkuary 10, 1902.
Present : George W. Perkins in chair.
February 18, 1902,
Present: George W. Perkins in chair.
March 4, 1902.
Present : George W. Perkins in chair.
Mr. Stetson reads memoranda referring to suggested issue of bonds
in exchange for part of preferred stock of this company. Mr. Perkins
left the chair and withdrew from the meeting.
March 7, 1902.
Present: George W. Perkins in chair.
Mr. Perkins left chair and withdrew.
Form of contract with J. P. Morgan & Co. adopted.
March 11, 1902.
Present: George W. Perkins in chair.
March 18, 1902.
Present: George W. Perkins in chair.
April 1, 1902.
Present: George W. Perkins in chair.
(Printed copy of report of finance committee as to preferred stock
retirement inserted here.)
April 8, 1902.
Present: George W. Perkins in chair.
Power to MacVeagh to vote at adjourned meeting of Federal
Steel Co.
Power to Murray to vote at Carnegie company, and American Sheet
Steel Co.
Present: George W. Perkins in chair.
Present: George W. Perkins in chair.
Present: George W. Perkins in chair.
April 15, 1902.
April 22, 1902.
April 29, 1902.
May 6, 1902.
Present: George W. Perkins in chair.
Treasurer authorized to make purchase of $150,000 worth of bonds
Bellaire Steel Co. at par or better.
May 13, 1902.
Present: George W. Perkins in chair.
Treasurer directed to purchase $5,000,000 Michigan Central Rail-
road first-mortgage 3^ per cent bonds at 104 and interest.
3848 united states steel, corporation.
May 20, 1902.
Present: George W. Perkins in chair.
$50,000 voted to Hon. Thomas B. Reed for professional services in
Mixer Patent Suit.
May 27, 1902.
Present: George W. Perkins in chair.
June 3, 1902.
Present: George W. Perkins in chair.
$5,000,000 first-mortgage 3^ per cent bonds of the Michigan Central
Railroad Co. purchase.
June 10, 1902.
Present: George W. Perkins in chair.
Letter of Mr. Perkins to United States Trust Co. referring to
$3,040,000 deposited for purchase of sinking fund first-mortgage
bonds.
June 17, 1902.
Present: George W. Perkins in chair.
Two million six hundred and forty-three thousand dollars first
mortgage bonds bought for account of sinking fund.
Morgan contract extended from April 1, 1902, to October 10, 1902.
June 24, 1902.
Present: George W. Perkins m chair.
July 1, 1902.
Present: George W. Perkins in chair.
Two thousand dollars subscribed to American Protective Tariff
League.
Five thousand doUars subscribed to Home for Disabled Seamen,
at request of Admiral Higginson.
July 8, 1902.
July 16, 1902.
July 22, 1902.
July 29, 1902.
August 5, 1902.
August 12, 1902.
August 26, 1902.
Present, George W. Perkins in chair.
Troy plant at Breaker Island to be purchased at not exceeding
$1,000,000.
September 2, 1902.
Present, George W. Perkins in chair.
Consolidation or dissolution of subordinate railroad companies at
Milwaukee and other mills referred to chairman, with power.
Present: George W. Perkins in chair.
Present: George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
united states steel coepobatiok. 3849
September 9, 1902.
Present, George W. Perkins in chair.
September 16, 1902.
Present, George W. Perkins in chair.
September 23, 1902.
Present, George W. Perkins in chair.
(Note: Most of the foregoing meetings were held at the office of
J. P. Morgan & Co.)
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
September 30, 1902.
October 14, 1902.
October 28, 1902.
November 3, 1902.
November 11, 1902.
Present, George W. Perkins in chair.
Recommendation for the expenditure by subsidiary companies of
$2,333,000 for timber lands, ore, cars, etc.
November 18, 1902.
Present, George W. Perkins in chair.
$8,500,000 given to John D. Rockefeller by Pittsburg Steamship
Co. for purchase of Bessemer Fleet, referred to chairman with power.
November 25, 1902.
Present, George W. Perkins in chair.
Special meeting.
November 25, 1902.
Present, George W. Perkins in chair.
Regular meeting.
Federal Steel Co.
Formation of small company to operate the three elevators of
Frazier, Bartlett & Co.
Oliver Iron Mine Co. ,
Purchase of property of Champion Iron Mining Co.
December 2, 1902.
Present, George W. Perkins in chair.
Plan for profit sharing; 168,000 employees,. of which 122,000 receive
less than $800 per annum; 44,000 receive from $800 to $2,500; 1,300
receive $2,500 to $5,000; 150 receive from $5,000 to $10,000; 50
receive from $10,000 to $20,000; 15 receive $20,000 and over.
December 9, 1902.
Present, George W. Perkins in chair.
Sale $5,000,000 Michigan Central Railway first mortgage 3^ per
cent bonds.
Purchase of Troy Steel Co., $1,100,000, approved.
3850 united states steel, corpobation.
December 10 to 17, 1902.
Present, George W. Perkins in chair.
Minutes on inspection trip.
Acquisition of the Union Sharon plants.
Estimated that the plants, coal and coke properties, amount to
$28,000,000.
Proposed contract with International Harvester Co. referred to
Gary, Perkins, and Ream, with power.
Judge Reed submitted contract with Union Sharon people and
chairman was instructed to execute same.
Question of purchasing Champion mines for $1,100,000 cash dis-
cussed and passed upon.
Progress of negotiations with International Harvester Co.
December 24, 1902.
At ofhce of J. P. Morgan & Co.
Present, George W. Perkins in chair.-
December 30, 1902.
At office of J. P. Morgan & Co.
Present, George W. Perkias in chair.
Abandonment of the Rochester plant of the American Bridge Co.
and sale of property at best price obtainable recommended.
At office of J. P. Morgan & Co.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
January 6, 1903.
January 7, 1903.
January 13, 1903.
January 20, 1903.
At the office of the corporation.
Present, George W. Perkins in chair.
Recommendations in re Elk Creek Dock Co and Connellsville
Central Railroad Co. to be conveyed to the Conneaut Dock Co. and
the Bessemer Railroad.
Oliver Iron Mining Co.
OHver ore properties.
Troy Steel Products Co.
Sharon Steel Co.
January 27, 1903.
Present, George W. Perkins in chair.
Committee to negotiate with Mr. HUl regarding purchase of ore
properties.
American Tin Plate Co. rebate circular.
January 28, 1903.
Present, George W. Perkins in chair.
February 3, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Recommended purchase of 2,985 shares out of 3,245 shares Sharon
Tin Plate Co., at $153.17.
united states steel corpoeation. 3851
February 4, 1903.
Present, Robert Bacon.
Report of Mr. Frick on expenditures to be made aggregating
$2,674,671 by subsidiary companies recommended.
February 10, 1903.
Present, .
Judge Gary reported purchase of 2,985 shares of stock of the
Sharon Tin Plate Co. by the American Tin Plate Co., leaving 260
shares outstanding.
Purchased by H. C. Frick Coke Co. of about 330 acres of steam
coal land, at $550 per acre, in accordance with particulars given in
letter by President Lynch to Mr. Gayley dated January 31, recom-
mended.
Expenditures for subsidiary companies, $2,282,050 recommended.
February 17, 1903.
Present, George W. Perkins in chair.
American Steel & Wire Co. paid $107,299.70 and gave its note for
$1,100,000 guranteed by the United States Steel Corporation for the
purchase of the Troy Steel Products Co.
Purchased from Henry C. Frick 2,000 shares of the Youngstown
Iron Sheet & Tube Co. for $211,196, promissory note payable on or
before five years after date with 5 per cent interest.
February 24, 1903.
Present, George W. Perkins in chair.
Deal with Pennsylvania RaUroad Co. for the building from the
northerly end of the Masontown & New Salemville Railroad to
Brownsville on the Monongahela River.
Present, George W. Perkins in chair.
February 25, 1903.
March 3, 1903.
Present, George W. Perkins in chair.
Question of sale of South Side property of American Steel & Wire
Co. in Pittsburgh for $600,000 referred to Mr. Frick and Judge Gary.
March 3, 1903.
Present, George W. Perkins in chair.
Special meeting 4 p. m.
Report of Mr. Frick that he acquired from the Chemung Iron Co.
its interest as lessee of large territory of iron-ore property located
on the Mesaba Range.
March 10, 1903.
Present, George W. Perkins in chair.
Subject matter of guaranteeing minimum tonnage of ore to be
hauled by Mr. Hill's railroads was referred to Mr. Frick, with power.
Clairton Steel property referred to Judge Gary.
Favorable report on cement manufacture.
The evolving of a plan for the formation and financing of a company
was referred to Judge Gary with power.
31572— No. 53, pt. 2—12 8
3852 united states steel coeporation.
March 17, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Arrangement with Mr. Hill to guarantee 800,000 tons per year.
Qairton Steel Co.
Mr. Snyder proposed that this company should acquire 55 per
cent of the stock or Clairton Steel Co", on a basis of actual cost. That
the crucible Steel Co. should retain 35 per cent and Snyder 10 per cent,
Clairton Steel Co. to enter into a 10-year contract with the Crucible
Steel Co. under which the former should agree to supply the latter
with a maximum of 200,000 tons of steel per annum at $3 per ton
below the market price.
Referred to Judge Gary and Mr. Frick.
Makch 19, 1903.
Present, George W. Perkins in the chair.
CLAIRTON PROPERTY.
The special committee on Clairton property reported that they
had negotiated a proposition for the sale' to this corporation of 55
per cent of the Clairton Steel Co. on basis of absolute cost, the Crucible
Steel Co. to retain 35 per cent and W. P. Snyder to procure and own
10 per cent. That the negotiations were conducted with W. P.
Snyder and Chairman Miller of the Crucible Steel Co., who will
endeavor to secure the assent of aU the stockholders of the Crucible
Steel Co.
W. E. Corey, Thomas Morrison, and-W. P. Schiller have been ap-
pointed a special committee to examine the properties in question
and report at their earliest convenience.
That accompanying the proposition is a proposed arrangement
between this company and the Crucible Steel Co. for the total require-
ments of iron and steel of the Crucible Steel Co. when and as the
United States Steel Corporation is in a position to furnish the same.
That the basis for steel is as follows: When the average monthly
price of steel, to be determined by mutual agreement or by arbitra-
tion if necessary, is over $22 per ton, a reduction to the purchaser of
$2 per ton; when $22 or below down to $15 per ton, a reduction of 7
per cent; and below $15 per ton, no reduction.
When the average monthly market price of pig iron, ascertained as
above, is $20 or over, a reduction of $1.50 per ton to the purchaser;
when under $20 per ton down to $16, a reduction of 7 per cent; and
below $16 down to $14, a reduction of 5 per cent; below $14, no
reduction.
That the leading interests are not to engage in competitive busi-
ness. That Mr. Snyder wUl be connected with the management of
the Clairton Co. during the pleasure of this corporation and on a salary
to be fixed by agreement or by Mr. Frick if officials can not agree,
and when so connected wiU not engage in competitive business.
That the expenditures up to the present date are represented to
amount to about $10,250,000 and have been paid in 5 per cent bonds
of the Clairton Steel Co. guaranteed by the Crucible Steel Co., 55 per
cent of which this corporation will assume in payment of 55 per cent
with interest as above.
UNITED STATES STEEL COEPOEATION. 3853
On motion, the subject matter was referred to the chairman of the
executive committee to close on the above basis, provided treasurer
can arrange with Pittsburgh banks for 55 per cent of the additional
cash required to complete and for working capital payable on or
before five years at not exceeding 5 per cent interest.
Apeil 2, 1903.
Bond of $1,000,000 to Central Trust Co., of New York, guaranteeing
it against liability by reason of waiving clause in indentures given by
Duluth, Missabe & Northern Railway Co. to Central Trust Co. of
New York, dated January 1, 1893, and January 1, 1898, respectively.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Option on Kosmerl ore property taken.
Apeil 7, 1903.
Apeil 14, 1903.
April 21, 1903.
Apeil 28, 1903
Present, George W. Perkins in chair.
This committee is to pass upon all contracts entered into by sub-
sidiary companies for improvements, etc.
Contract between the Wabash Railroad and the Union Railroad
referred to a special committee.
Subscription, $550,000 face value of notes of William Cramp &
Sons Ship & Engine Building Co., payment authorized.
May 5, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Present, George W. Perkins in chair.
Special meeting.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Special meeting.
Present, George W. Perkins in chair.
May 5, 1903.
May 12, 1903.
May 13, 1903.
May 19, 1903.
May 26, 1903.
Present, George W. Perkins in chair.
Forty thousand tons of pig iron from the Valley furnaces and 30,000
tons from Mr. Snyder, all at $18.50 at the furnaces.
June 2, 1903.
Present, George W. Perkins in chair.
The special committee concerning the organization of the Union
Steel Co. reported that it had been decided to have a nominal organi-
zation in New York consisting of Mr. William B. Dickson, president;
Mr. Richard Trimble, treasurer; Mr. W. J. Filbert as secretary, and
3854 UNITED STATES STEEL CORPORATION.
those three gentlemen with Messrs. Gary and Schwab or some others
to be selected, as directors. That leases of the different classes of
manufacturing property now being operated by different subsidiary
companies should he made and the management and operation of
these lines of business respectively continued by proposed leases.
Report adopted and appio^'ed.
June 9, 1903.
South Side properties American Steel & Wire Co. sold for $350,000.
June 16, 1903.
Present, George W. Perkins in chair, Robert Bacon.
June 23, 1903.
Present, George W. Perkins in chair.
June 30, 1903.
Present, George W. Perkins in chair.
July 7, 1903.
Present, George W. Perkins in chair, Robert Bacon.
July 14, 1903
Present, George W. Perkins in chair, Robert Bacon.
July 21, 1903.
Present, George W. Perkins in chair.
July 28, 1903.
Present, George W. Perkins in chair, Robert Bacon.
A letter dated July 27, 1903, to Mr. Corey, assistant president,
from Mr. F. A. FarreU, export sales agent of the American Steel &
Wire Co., was read advising the orgamzation of a department to be
called " Export bureau " or "Foreign sales department," and pointing
out the advantages to be derivedfrom export business, especially during
dull times, and also the great saving to be made by consolidating the
handling of all contracts in one department.
Referred to Mr. Gary with power.
Present, George W. Perkins in the chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, Robert Bacon.
Present, George W. Perkins in chair.
September 29, 1903.
Present, George W. Perkins in chair, Robert Bacon.
August 4, 1903.
August 18, 1903.
September 1, 1903.
September 9, 1903.
September 15, 1903.
September 23, 1903.
united states steel coepobation. 3855
October 6, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Present, Robert Bacon.
Present, George W. Perkins in chair.
October 7, 1903.
October 20, 1903.
October 27, 1903.
Present, George W. Perkins in chair.
Bill of Gilbert, Hill & Vanderveer for $1,218.45 for services in con-
nection with the acquirement of minority holdings of stock of Shelby
Steel Tube Co. approved.
Question of consoHdating American Sheet Steel and Tin Plate
companies referred to a committee composed of Messrs. Corey, Gary,
and Frick.
Messrs. Gary, Frick, Corey, and Perkins appointed committee to
consider Pocahontas coke question with power.
November 4, 1903.
Present, George W. Perkins in chair.
Special committee appointed on Pocahontas Coke Co. reported that
they had met and approved recommendations contained in letter
addressed to President Corey by President Lynch under date October
20, 1903.
November*10, 1903.
Present, George W. Perkins in chair, Robert Bacon.
The president read letter from Mr. Gayley showing average carry-
ing cost of ore of Pittsburgh Steamship Co. to be 52^ cents per ton ;
of Mitchell fleet, 62 cents; WUson fleet, 60 cents.
November 17, 1903.
Present, George W. Perkins in chair.
November 18, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Messrs. Gary and Frick appointed special committee to negotiate
with J. P. Morgan & Co., with a view of obtaining a surrender of con-
tract of April 1, 1902.
November 24, 1903,
Present, George W. Perkins in chair, Robert Bacon.
December 1, 1903.
Present, George W. Perkins in chair.
Recommendation from President Lynch to make a cut in wage
scale of H. C. Frick Coke Co. referred to president with power.
Letter to J. P. Morgan & Co., November 19, 1903, signed by Mr.
Gary.
Letter to Mr. Gary from J. P. Morgan & Co., dated November 19,
consenting to surrender of contract for conversion of preferred stock
into bonds beyond the sum of $150,000,000.
3s56 united states steel corpobatjon.
December 8, 1903.
Present, George W. Perkins in chair.
Letter from (p. 246 of finance committee minutes) W. P.. Dickson
to President Corey.
The presidents met in Pittsburgh^ December 2 and 3, and the ques-
tion of wages and salaries was discussed, and a cut of 10 per cent on
all salaries of $3,000 and under, but not less than |500, recommended.
December 15, 1903.
Present, George W. Perkins in chair.
December 18, 1903.
Present, George W. Perkins in chair^ Robert Bacon.
Recommendation in regard to marking down of inventories.
December 22, 1903.
Present, George W. Perkins in chair, Robert Bacon.
Cash offer of $500,000 by H. C. Frick Coke Company for the Con-
nellsville coal land from J. V. Thompson.
December 29, 1903.
Present, George W. Perkins in chair.
January 5, 1904.
Present, George W. Perkins in chair, Robert Bacon.
January 6, 1904.
Present, (jeorge W. Perkins in chair, Robert Bacon.
January 12, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Approved contract between American Tin Plate Co. and American
Can Co. on basis of 13.35 per box.
January 26, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Judge Gary reported contract, International Nickel Co., covering ' '
our total requirements from January 1, 1904, to December 31, 1909,
at 30 cents per pound, but with the guarantee that the price shall
always be 5 cents per pound less than on sales to other customers with
the exception of the Bethlehem Steel Co., and with a minimum of
500,000 pounds per year.
February. 2, 1904.
Present, George W. Perkins in chair, Robert Bacon.
February 9, 1904.
Present, George W. Perkins in chair, Robert Bacon.
February 16, 1904.
Present, George W. Perkins in chair.
February 23, 1904.
Present, Elbert H. Gary in chair.
March 1, 1904.
Present, Elbert H. Gary in chair, Robert Bacon.
united states steel cobpobation. 3857
March 8, 1904.
Present, Elbert H. Gary in chair.
March 22, 1904.
Present, George W. Perkins in chair.
March 29, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Appropriation for cement plant, $1,500,000.
April 5, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Recommended that subsidiary companies who are manufacturing
semifinished products do not sell same to outsiders in competition
with subsidiary companies who are manufacturing finished products
from such semifinished products, without the consent of the sub-
sidiary company interested.
April 13, 1904.
Present, George W. Perkins in chair.
April 16, 1904.
Present, George W. Perkins in chair, Robert Bacon.
April 19, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Messrs. Gary, Corey, and Filbert appointed committee to report
on acquisition of Clairton property.
April 27, 1904.
Present, George W. Perkins in chair.
April 28, 1904.
Present, George W. Perkins in chair.
April 29, 1904.
Present, George W. Perkins in chair.
Form of contract for purchase of Clairton Steel properties adopted.
May 3, 1904.
Present, George W. Perkins in chair, Robert Bacon.
May 10, 1904.
Present, George W. Perkins in chair, Robert Bacon.
May 17, 1904.
Present, George W. Perkins in chair.
May 24, 1904.
Present, George W. Perkins in chair.
Thirty-roiir thousand nine hundred and eighty-six shares stock of
Clairton Steel Company transferred to the United States Trust Com-
pany in trust for the United States Steel Corporation, 14 shares re-
quired to qualify directors, making total of 35,000 shares acquired
from Cruciole Steel Company.
3858 united states steel, coeporation.
May 31, 1904.
Present, P. A. B. Widener in chair.
Seven hundred and sixty-seven thousand dollar 50-year 5 per cent
gold bonds transferred to the United States Trust Company as trustees.
June 7, 1904.
Present, George W. Perkins in chair, Robert Bacon.
June 14, 1904.
Present, George W. Perkins in. chair.
June 26, 1904.
Present, George W. Perkins, in chair.
One million five hundred thousand dollars to be expended for 1,000
coke ovens at Connellsville.
June 28, 1904.
Present, George W. Perkins in chair.
Authorization to purchase for the sinking fund $1,000,000 par value
of the short series 5 per cent bonds at 107 flat on the first of July next.
June 29, 1904.
Present George W. Perkins in chair.
July 5, 1904.
Present, George W. Perkins in chair.
Capital stock of the Trenton Iron Co. bought for $500,000 par value
of 10-sixty year bonds.
Mr. Perkms reported purchase of bonds authorized at meeting of
June 28 th.
July 13, 1904.
Present, George W. Perkins in chair, Robert Bacon.
July 21, 1904.
Present, George W. Perkins ia chair, Robert Bacon.
Jur.Y 22, 1904.
Present, George W. Perkins in chair, Robert Bacon.
July 25, 1904.
Present, George W. Perkins in chair.
Mr. J. r. Morgan by request.
July 26, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
August 2, 1904.
August 4, 1904.
August 10, 1904.
August 16, 1904.
united states steel coepoeation. 3859
August 24, 1904.
Present, George W. Perkins in chair.
August 30, 1904.
Present, George W. Perkins in chair.
Messrs. Gary, Corey, Ream, and Perkins, special committee, with
power in re making contract with International Harvester Co.
Septembek 7, 1904.
Present, George W. Perkins in chair.
September 13, 1904.
Present, George W. Perkins in chair.
September 20, 1904.
Present, Elbert H. Gary in chair, Robert Bacon.
International Harvester declined the proposition which was made
to it and made a counter proposition which was not acceptable to the
United States Steel Corporation.
September 27, 1904.
Present, George W. Perkins in chair.
Letter and telegram from President Buffington of Illinois Steel Co.
in regard to failure of Illinois Steel Co. to complete a working agree-
ment with the International Harvester Co. and suggesting the advisa-
bility of purchasing the Acme Harvester Co. in order to make an
outlet for some of our products.
Referred to special committee with power.
Trenton Iron Co. bought for cash instead of bonds.
October 4, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Letter from James M. Swank, general manager American Iron &
Steel Association, asking for a subscription. On motion $6,000 sub-
scribed for the work of that association.
October 11, 1904.
Present, George W. Perkins in chair.
October 18, 1904.
Present, George W. Perkins in chair, Robert Bacon.
October 25, 1904.
Present, George W. Perkins in chair, Robert Bacon.
November 1, 1904.
Present, George W. Perkins in chair.
Messrs. Gary and Corey appointed committee with power in regard
to making some arrangement with foreign producers in regard to
price of rails to be sold m neutral markets.
November 10, 1904.
Present, George W. Perkins in chair.
November 11, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Fifty million dollars nonnegotiable 5 per cent notes from subsidiary
companies authorized.
3860 x7ititbd states steel, coeporation.
November 15, 1904.
Present, George W. Perkins in chair, Kobert Bacon.
NOVEMBEB 22, 1904.
Present, George W. Perkins in chair.
Letter from President Lynch in regard to probable shortage of
coke and recommending purchase of 100,000 tons of Pocahontas coke.
November 28, 1904.
Present, George W. Perkins in chair, Robert Bacon.
Nine million dollars charged o9' to surplus for capital expenditures.
Judge Gary reported in regard to the International Harvester Co.,
that after repeated conferences it had failed to reach any agreement;
and the committee was discharged.
December 6, 1904.
Present, George W. Perkins in chair.
Judge Gary made full report of negotiations in regard to inter-
views with the Pennsylvania Railroad people concerning proposed
Wabash RaUroad Co.
December 13, 1904.
Present, George W. Perkins in chairj Robert Bacon.
Twenty-five thousand tons of pig iron purchased, at $15.50, for
immediate delivery.
On motion, duly seconded, the following resolutions were unani-
mously adopted:
Resolved, That unless otherwise ordered by the chairman of the
board, the secretary be, and hereby he is, authorized and directed to
allow trustee to invest in any of the securities of this company without
regard to the authority of the trustee or trustees to make such invest-
ment; and
Resolved, further, That all questions concerning the transfer by
trustees of any of the securities of the company hereby are referred to
the chairman of the board and the secretary with power to determine
the same as they in their discretion may deem to be for the best
interests of the corporation.
December 20, 1904.
Present, George W. Perkins in chair, Robert Bacon.
December 27, 1904.
Present,. George W. Perkins in chair, Robert Bacon.
(Note. — The book from which the foregoing minutes were taken
is labeled "Finance committee minutes, Apr. 10, 1901, to Dec. 29,
1903," but the book includes minutes up to Dec. 27, 1904.)
(The minute book from which the following minutes are taken is
labeled "Finance committee minutes January 5, 1904, to July 31,
1906," but the book contains minutes beginning January 3, 1905,
and ending June 25, 1907.)
January 3, 1905.
Present, George W. Perkins in chair.
united states steel cobpobation. 3861
January 10. 1905.
Present, George W. Perkins in chair, Eobert Bacon.
Shortage of pig iron in the Pittsburgh district. Committee ap-
pointed vidth power to buy 25,000 tons.
January 17, 1905.
Present, George W. Perkins in chair.
Judge Gary reported extended interview with Mr. Cassatt on the
Wabash Union Railroad contract.
Twenty-five thousand tons of pig iron, at 115.50 at furnace, pur-
chase concluded.
Report of special committee on the contracts between the Illinois
Steel Co., American Steel & Wire Co., American Bridge Co., and
National Tube Co. with the Dering Coal Co. for 50 years' supply of
Illinois coal as stated in written contract, heretofore exhibited,
approved.
Committee recommends acceptance of Mr. Prick's offer to sell to
this corporation or some subsidiary corporation 143 acres of land,
located at Clairton, for $1,000,000. Details and forms of documents
will be arranged between Mr. Prick and chairman of board.
January 24, 1905.
Present, George W. Perkins in chair, Robert Bacon.
January 31, 1905.
Present, George W. Perkins in chair, Robert Bacon.
Judge Gary reported consultation with President Cassatt and that
a letter had been received from Mr. Gould in regard to Wabash
Union contract.
Also contract with Mr. Frick for purchase of 143 acres of land at
Qairton.
February 7, 1905.
Present, George W. Perkins in chair, Robert Bacon.
President made report of operation of plants and foreign sales.
President authorized the purchase of 25,000 tons pig iron at S15.50
February 14, 1904.
Present, Elbert H. Gary in chair, Robert Bacon.
February 21, 1905.
Present, George W. Perkins in chair.
February 28, 1905.
Present, George W. Perkins in chair, Robert Bacon.
Letter from President Ramsey, of the Wabash Road, to Judge
Reed, dated February 23, and letter from President Cassatt, dated
February 27, referred to chairman for action on the suggestions
made.
March 1, 1905.
Present, George W. Perkins, Robert Bacon.
March 7, 1905.
Present, Elbert H. Gary in Chair, Robert Bacon.
3862 united states steel cobpobation.
March 14, 1905.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Maboh 21, 1905.
March 28, 1905.
March 29, 1905.
April 4, 1904.
Present, George W. Perkins in chair.
Special conamittee on Wabash Union KaUroad Co. made report
covering negotiations to date, which was approved.
Thirty- three thousand tons pig iron for April delivery at $15.50 at
furnaces authorized.
April 5, 1905.
Present, Elbert H. Gary in chair.
Contract approved between Pittsburgh Coal Co. and subsidiary
companies for supply of coal.
April 11, 1905.
Present, George W. Perkins in chair.
Special meeting.
April 11, 1905.
Present, George W. Perkins in chair.
President read letter from J. A. Farrell on subject of importations
of iron and steel in 1902 and 1903 and suggesting a plan by which
the company might keep in touch with future sales of imported iron
and steel in this country.
Proposed form of contract between the Carnegie Steel Co. and the
Pittsburgh Steel Co. for the latter's supply of bDlets recommended
to be made.
Proposed contract between American Sheet & Tin Plate Co. and
the American Can Co. recommended to be made.
Present. George W. Perkins in chair.
Present, George W. Perkins in chair.
Contract with Pittsburgh Coal Co. concluded.
April 18, 1905.
April 25, 1905.
Present, George W. Perkins in chair.
Present, Elbert H. Gary in chair.
Present. George W. Perkins in chair, Eobert Bacon
April 26, 1905.
May 2, 1905.
May 9,1905.
May 17, 1905.
Present, George W. Perkins in chair, Eobert Bacon.
May 23, 1905.
Present, Elbert H. Gary in chair, Eoberl) Bacon.
united states steel coeporation.
May 26
Present, George W. Perkins in chair, Robert Bacon.
May 29
Present, George W. Perkins in chair, Robert Bacon.
June 6
Present, George W. Perkins in chair, Robert Bacon.
June 13
Present, Elbert H. Gary in chair, Robert Bacon.
June 20
Present, George W. Perkins in chair, Robert Bacon.
June 27
Present, George W. Perkins in chair.
July 5
Present, George W. Perkins in chair, Robert Bacon.
July 11
Present, George W. Perkins in chair, Robert Bacon.
July 18
Present, George W. Perkins in chair, Robert Bacon.
July 25
Present, George W. Perkins in chair, Robert Bacon.
August 1
August 8
August 15
August 22
August 24
Present, George W. Perkins in chair. .
Present, George W. Perkins in chair.
Present, Elbert H. Gary in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
August 29
Present, George W. Perkins in chair, Robert Bacon.
September 5
Present, George W. Perkins in chair.
September 12
Present, George W. Perkins in chair.
September 14
Present, Elbert H. Gary in chair.
Special meeting.
3863
1905.
1905.
1905.
1905.
1905,
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
3864
UNITM) STATES STEEL COEPORATION.
September 19, 1905.
Present, Elbert H. Gary in chair, Eobert Bacon.
The president submitted a report for the month of August showing
the output and cost of production in the Pocahontas field.
September 26, 1905.
Present, George W. Perkins in chair.
Special committee on concentration of seamless-tube plants of the
Shelby Steel Tube Co. reported.
Present, George W. Perkins in chair.
Special meeting.
Present, George W. Perkins in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
Present, Elbert H. Gary in chair.
*
Present, Elbert H. Gary in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins.
Present, Elbert H. Gary in chair.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
J. P. Morgan, by request.
Present, George W, Perkins.
September 26, 1905.
October 3, 1905.
October 10, 1905.
October 13, 1905.
October 17, 1905.
October 24, 1905.
October 31, 1905.
November 8, 1905.
November 14, 1905.
November 21, 1905.
November 28, 1905.
December 5, 1905.
December 12, 1905.
December 19, 1905.
December 28, 1905.
December 29, 1905.
January 2, 1906.
united states steel corporation. 3865
January 4, 1906.
Present, George W. Perkins.
Special meeting.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
January 9, 1906.
January 15, 1906.
January 16, 1906.
January 23, 1906.
January 30, 1906.
February 1, 1906.
Present, George W. Perkins.
Two million five hundred thousand dollars in the 4 per cent 15-25-
year gold bonds at 150 and accrued interest purchased.
February 6, 1906.
Present, George W. Perkins.
February 13, 1906.
Present, Elbert H. Gary in chair.
February 20, 1906.
Present, George W. Perkins.
Chairman of the board for himself and Mr. Frick reported a final
result of the negotiations for the acquisitions of the Hill ores that a
verbal arrangement had been made which would be reduced to
wT-iting in the form of leases and that if the parties agree as to the
details the arrangement would probably be made some time during
the spring or summer.
February 26, 1906.
Present, Elbert H. Gary in chair.
February 27, 1906.
Present, Elbert H. Gary in chair.
March 6, 1906.
Present, Elbert H. Gary in chair.
The question of subscribing to the campaign committee in charge
of the merchant-marine legislation as suggested in letter from
Mr. F. W. Wood, president of the Maryland Steel Co., to President
Corey under date of February 17 was referred to the chairman of
the board, with power.
March 13, 1906.
Present, Elbert H. Gary in chair.
March 20, 1906.
Present, Elbert H. Gary in chair.
March 27, 1906.
Present, Elbert H. Gary in chair.
April 3, 1906.
Present, George W. Perkins.
3866 united states steed corporation.
April 10, 1906.
Present, George W. Perkins in chair.
The chairman of the board referred to a request received for an
appropriation toward the expenses necessarily incident to the cam-
paign of a leading politician who was a candidate for reelection, and
stated that, inasmuch as a question had been raised as to whether or
not the management of corporations have a right to make contribu-
tions of this character, he recommended that the opinions of some of
the ablest lawyers concerning the whole subject matter be secured, so
that the members of the committee may feel certain tkey are at all
times observing the full requirements of the law on the subject.
Referred to chairman.
April 17, 1906.
Present, George W. Perkins.
On motion duly seconded the selection of EUwood City as the loca-
tion of the concentration of the seamless-tube plants of the Shelby
Steel Tube Co. was recommended at a cost of $1,200,000.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
April 24, 1906.
May 1, 1906.
May 8, 1906.
May 15, 1906.
Present, George W. Perkins.
Recommended that the Illinois company expend $1,400,000 in
building a cement plant, number 4, at BufEngton.
Five million dollars Pennsylvania company guaranteed 4^ per cent
18 months notes subscribed for through Kunn, Loeb & Co.
May 22, 1906.
Present, George W. Perkins in chair.
Recommendation for prompt installation of a Portland cement
plant at Pittsburgh at a cost of $1,600,000. Also that the cement
properties and business be consolidated into a corporation to be called
the Universal Portland Cement Co.
May 29, 1906.
Present, George W. Perkins in chair.
Chairinan and treasurer authorized to invest surplus funds in New
York, Chicago, and St. Louis in 4 per cent debenture bonds, Norfolk
& Western Railroad and Union Steel Co., up to $1,000,000 each.
Committee appointed to inquire into the interests of officers or
employees of this corporation or subsidiary companies in any out-
side companies or firms from which this corporation or subsidiary
companies as or may make purchases or contracts.
June 5, 1906.
Present, George W. Perkins in chair.
united states steel corporation. 3867
June 12, 1906.
Present, George W. Perkins.
Written opinions from John G. Johnson of Philadelphia, and David
T. Watson, of Pittsburgh, that this corporation has no right to make
contributions for political or charitable purposes.
Resolved that hereafter no such contributions be made.
June 19, 1906.
Present, George W. Perkins in chair.
June 26, 1906.
Present, George W. Perkins in chair.
Special committee to whom was referred the question of making
future contracts for sales of semifinished products to competitors of
subsidiary companies made a special report which was approved and
adopted.
President reported purchase of 8,000 tons pig iron at $17.25
Valley for September delivery.
July 3, 1906.
Present, George W. Perkins in chair.
July 10, 1906.
Present, George W. Perkins in chair.
July 17, 1906.
Present, George W. Perkins in chair.
July 24, 1906.
Present, George W. Perkins in chair.
Two million dollars loaned to the Union Pacific Railway Co.
One million dollars' worth of notes of American Telephone & Tele-
graph Co. purchased.
July 31, 1906.
Present, George W. Perkins in chair.
August 1, 1906.
Present, George W. Perkins in chair.
August 14, 1906.
Present, William E. Corey in chair.
Three million dollars loaned to the Union Pacific Railroad Co.
August 28, 1906.
Present, George W. Perkins in chair.
September 11, 1906.
Present, George W. Perkins in chair.
Reference made to the Shenandoah Steel Wire Co. adjacent to the
plant of the Alleghany Steel Co.
September 18, 1906.
Present, George W. Perkins in chair.
September 25, 1906.
Present, George W. Perkins in chair.
October 2, 1906.
Present, George W. Perkins in chair.
31572— No. 53, pt. 2—12 9
3868
united states steel cobpoeation.
October 9, 1906.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, Elbert H. Gary in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
October 16
October 23
October 30
November 7
November 13
November 20
November 27
December 4
December 11
December 14
December 18
December 24
December 31
January 8
January 15
Present, George W. Perkins in chair.
Kecommendation for dismantling the Breaker Island Plant of the
Troy Steel Co.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
January 22
January 29
February 5
February 13
February 19
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1906.
1907.
1907.
1907.
1907.
1907.
1907.
1907.
united states steel ooepoeation. 3869
Fbbeuakt 26, 1907,
Present, George W. Perkins in chair.
Resignation or Mr. Perkins as chairman of the committee.
(The minute book from which the following minutes are taken is
labeled "Finance committee minutes August 1, 1906, to October 26,
1909," but the book contains minutes beginning July 2, 1907, and
ending December 28, 1909.)
July 2, 1907.
Present, George W. Perkins.
July 3, 1907.
Present, George W. Perkins, Mr. Dickson, and Mr. Joseph P.
Cotton, by invitation; Mr. Elbert H. Gary in chair.
The chairman called attention to the report and recommendation
of the local officials at Duluth concerning the location and acquisition
of a railroad line to connect the proposed manufacturing properties
at Duluth with the various railroads in the vicinity, and necessary
terminals, bridges, etc., as shown ,in the maps submitted.
Whereupon it was decided to promptly and discreetly locate and
secure the property as recommended.
July 8, 1907.
Present, George W. Perkins.
July 16, 1907.
Present, George W. Perkins in chair.
July 22, 1907.
Present, George W. Perkins in chair.
July 22, 1907—2.30 p. m.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
July 23, 1907.
July 23, 1907—2 p. m.
July 30, 1907—2 p. m.
August 6, 1907.
Present, George W. Perkins in chair.
Offer to sell the Schoen Steel Wheel Co. for $5,000,000.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
August 13, 1907.
August 20, 1907.
August 27, 1907.
October 8, 1907.
Present, George W. Perkins in chair.
National Wire Corporation at New Haven, Conn., bought for
$650,000.
3870 united states steel coepokation.
October 22, 1907.
JPresent, George W. Perkins.
October 23, 1907.
Present, Elbert H. Gary in chair, George W. Perldns.
It was unanimously voted that an exchange of $1,200,000 par
value Ten-sixty 5 per cent gold bonds of the United States Steel
Corporation be made for 20,000 shares $2,000,000 par value of Ten-
nessee Coal, Iron & Railroad Co., as outlined in the agreement
submitted.
October 29, 1907.
November 1, 1907.
Present, George W. Perkins.
Present, George W. Perkins.
November 2, 1907 — 11 a. m.
Present, George W. Perkins, J. P. Morgan by request.
The subject matter of the purchase of the properties of the Ten-
nessee Coal, Iron & Railroad Co. on terms suggested was fully dis-
cussed, and the meeting adjourned without action.
November 2, 1907 — 9 p. m.
Present, George W. Perkins, J. P. Morgan by request.
Same subject discussed.
November 3, 1907 — 11 a. m
Present, George W. Perkins.
Same subject discussed.
Mr. Morgan present by request.
9 p. m.
Resolved to recommend to the board the purchase of the proper-
ties on the terms stated.
Referred to the President with power.
November 4, 1907 — 6 p. m.
Present, George W. Perkins, J. P. Morgan.
Recommended purchase of properties on terms suggested and
differing somewhat from terms suggested on November 3 at meet-
ing 9 p. m.
November 5, 1907.
Present, George W. Perkins, J. P. Morgan by request.
The subject of Tennessee Coal, Iron & Railroad Co. discussed and
referred to chairman with power.
November 6, 1907.
Present, George W. Perkins.
Authorization to execute and deliver to J. P. Morgan & Co. assign-
ment covering certificate L 118 for $30,000,000 par value ten-sixty
5 per cent gold bonds, for the purpose of exchanging same for capital
stock of Tennessee Coal, Iron & Railroad Co.
November 6, 1907—3.30 p. m.
Present, George W. Perkins.
Recommendation to directors in regard to purchase of Tennessee
Coal, Iron & Railroad Co.'s stock.
UNITED STATES STEEL OOKPORATION. 3871
November 12, 1907.
November 19, 1907.
November 26, 1907.
Present, George W. Perkins.
Present, George W. Perkins
Present, George W. Perkins.
^ ^Joseph P. Cotton paid $2,000 extra compensation for services in
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Special meeting.
December 3, 1907.
December 17, 1907.
December 24, 1907
December 31, 1907.
January 7, 1908.
January 8, 1908.
January 14', 1908.
January 28, 1908.
February 4, 1908.
February 11, 1908.
February 18, 1908.
February 25, 1908.
March 31, 1908.
April 7, 1908.
April 14, 1908.
April 21, 1908.
April 28, 1908. ^
May 5, 1908.
May 12, 1908.
May 21, 1908.
3872
UHria?ED STATES STEEL COEPOBATION.
May 26, 1908.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Special meeting.
Considering matters relating to prices.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
June 2, 1908.
June 3, 1908,
June 9, 1908.
June 23, 1908.
June 30, 1908.
July 6, 1908.
Present, George W. Perkins.
The chairman presented a report from McVeagh & Bray in which
it was recommended to make loan to Hon. George C. Sturgiss of
Morgantown, W. Va., and after consideration it was voted to dis-
approve the recommendation.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
July 14, 1908.
July 21, 1908.
July 28, 1908.
August 4, 1908.
August 10, 1908.
September 1, 1908.
September 8, 1908.
September 15, 1908.
September 22, 1908.
September 29, 1908.
October 6, 1908.
October 13, 1908.
united states steel. ooepoeation. 3873
October 20, 1908.
October 27, 1908.
November 4, 1908.
November 10, 1908.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Two hundred and thirty-six thousand dollars recommended for ex-
tension of Universal Portland Cement Co.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Special meeting.
Present, George W. Perkins.
November 17, 1908.
November 24, 1908.
December 1, 1908.
December 8, 1908.
December 15, 1908.
December 22, 1908.
January 12, 1909.
January 19, 1909.
January 26, 1909.
February 2, 1909.
February 9, 1909.
February 11, 1909.
February 16, 1909.
February 17, 1909.
February 19, 1909.
February 23, 1909.
February 23, 1909.
March 4, 1909.
April 6, 1909.
3874 united states steel. coepoeatiok.
April 12, 1909.
Present, George W. Perkins.
April 27, 1909.
Present, George W. Perkins.
The chairman read a cablegram from J. P. Morgan regarding the
wage question.
The president submitted a schedule showing profits of the organi-
zation at the present prices.
May 4, 1909.
Present, George W. Perkins.
The committee recommended approval of proposed expenditure
by the Oliver Iron Mining Company of the sum of $10,625,000 for
stripping and mining the ore in the Buffalo and Susquehanna mine in
return for traffic contract covering 19,000,000 tons of ore developed.
Letter to President from Mr. Dickson in regard to employment of
convict labor by the Tennessee Coal, Iron & Railroad Co.
Expenditure of $6,210,000 for the constructions at Gary, by-prod-
uct coke plant recommended.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
May 11, 1909.
May 18, 1909.
May 25, 1909.
May 27, 1909.
June 1, 1909.
Junes, 1909.
June 15, 1909.
June 22, 1909.
Present, J. P. Morgan, jr,, George W. Perkins.
Nine million dollars par value bonds Chicago, Lake Shore &
Eastern Railroad Co. guaranteed by Elgin, Joliet & Eastern Railway
Co. purchased by United States Steel Corporation and sold to
William A. Reed & Co. with additional guarantee of United States
Steel Corporation.
July, 6, 1909.
Present, J. P. Morgan, jr., George W Perkins made chairman.
July 12, 1909.
Present, J. P. Morgan, jr.
July 20, 1909.
Present, J. P. Morgan, jr., in chair.
July 27, 1909.
Present, J. P. Morgan, jr., in chair.
united states steel ooepokation. 3875
August 3, 1909.
Present, J. P. Morgan, jr., in chair.
August 10, 1909.
Present, J. P. Morgan, jr., in chair.
August 17, 1909.
Present, J. P. Morgan, jr., in chair.
August 24, 1909.
Present, J. P. Morgan, jr., in chair.
Treasurer authorized to purchase $1,000,000 5 per cent sinking
fund gold bonds at closing price on Stock Exchange this day.
August 31, 1^09.
Present, J. P. Morgan, jr., in chair.
September 7, 1909.
Present, J. P. Morgan, jr., in chair.
September 14, 1909.
Present, George W. Perkins, in chair, J. P. Morgan, jr.
September 21, 1909.
Present, J. P. Morgan, jr., George W. Perkins.
September 28, 1909.
Present, George W. Perkins.
Ten million dollars recommended for plant at Duluth.
October 5, 1909.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W. Perkins.
October 14, 1909.
October 19, 1909.
October 26, 1909.
November 3, 1909.
November 9, 1909.
November 16, 1909.
Present, George W. Perldns.
President submitted a letter from President Farrell, under date of
November 5, 1909, in regard to building a plant in Canada to manu-
facture all lines of products that we are exporting to Canada, accom-
panied by six statements giving data in regard to the proposition.
Upon motion the secretary was directed to send a copy of the
correspondence to each member of the committee.
November 23, 1909.
Present, George W. Perkins.
November 30, 1909.
Present, George W. Perkins.
3876 xinited states steel corpobation.
December 7, 1909.
Present, George W. Perkins.
December 14, 1909.
Present, George W. Perkins.
December 21, 1909.
Present, J. P. Morgan, jr., George W.-Perkins.
December 28, 1909.
Present, J. P. Morgan, jr., George W. Perkins.
(The book from which the following minutes were taken is labeled
"Record of Finance Committee of United States Steel Corporation,
No. 1.")
January 4, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
January 5, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
Special meeting.
January 5, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
January 11, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
J;anuary 18, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
January 25, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
February 1, 1910. 11 a. m.
Present, J. P. Morgan, jr., George W. Perkins.
Special meeting.
p. m.
Present, J. P. Morgan, jr.
February 8, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
Forty thousand tons, at $18, Valley, for delivery in March, April,
May, and June, purchased.
It was suggested that a 90-day option upon 8,000 acres of ore land
at $25 an acre be obtained under Shades Mountain.
February 15, 1910.
Present, J. P. Morgan, jr.
February 24, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
It was suggested that the corporation acquire the Chicago, Cin-
cinnati & Louisville Railroad Co., now in the hands of a receiver.
Purchase by Ohver Mining Co. from W. D. Connor of 15,654 acres
of timber land in Minnesota recommended.
UNITED' STATES STEEL COEPORATION.
3877
Ouyuna range. — Offer by Rogers, Brown & Co. to assign lease of 100
acres not recommended.
Purchased by the subsidiary companies of 2,550,000 tons of pig
iron referred to chairman and president with power.
Present, J. P. Morgan, jr.
March 1, 1910.
March 8, 1910.
Present, J. P. Morgan, jr.
Contract between the American Steel & Wire Co. and the Monon-
gahela Coal & Coke Co. recommended for execution.
Present, J. P. Morgan, jr.
Present, J. P. Morgan, jr.
Present, J. P. Morgan, jr., George W. Perkins.
March 15, 1910.
March 22, 1910.
March 22, 1910.
March 29, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
Letter from Crawford, of the Tennessee, Coal, Iron & Eailroad Co.,
March 24, recommending that the taking of options on Shades Moun-
tain be abandoned for the present and recommending the purchase
of about 660 acres mineral rights contiguous to the present ore lands
of the company, bringing its holdings up to the crest of Shades
Mountain, for about $80,000.
Referred to chairman and president.
April 5, 1910.
Present, George W. Perkins.
Present, J. P. Morgan,
Present, J. P. Morgan,
Present, J. P. Morgan,
Present, J. P. Morgan,
Present, J. P. Morgan,
r., George W. Perkins,
r., George W. Perkins,
r., George W. Perkins,
r., George W. Perkins,
r., George W. Perkins.
Present, George W. Perkins.
Present, J. P. Morgan,
Present, J. P. Morgan,
Present, J. P. Morgan,
Present, J. P. Morgan,
r., George W. Perkins.
r., George W. Perkins.
r.
r., George W. Perkins.
April 12,
XUXKJ,
1910.
April 19,
1910.
April 26,
1910.
May 3,
1910.
May 10,
1910.
May 17,
1910.
May 24,
1910.
May 31,
1910.
June 7,
1910.
June 14,
1910.
3878 united states steel cobpoeation.
June 21, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
June 28, 1910.
Present, George W. Perkins.
July 5, 1910.
Present, George W. Perkins in chair, J. P. Morgan, jr.
July 12, 1910.
Present, J. P. Morgan, jr., George W. Perkins in chair.
July 19, 1910.
Present, George W. Perkins in chair, J. P. Morgan, jr.
July 26, 1910.
Present, George W. Perkins in chair, J. P. Morgan, jr.
August 2, 1910.
Present, George W. Perldns in chair, J. P. Morgan, jr.
Present, George W. Perkins in chair.
August 9, 1910.
August 16, 1910.
Present, George W. Perkins in chair.
Colonization plan for mines and Duluth & Iron Range Railroad Co.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perldns in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins in chair.
Present, George W. Perkins.
Present, George W. Perkins.
Present, George W Perkins.
Present, George W. Perkins.
Present, George ^Y Perkins.
Colonization plan not approved.
Present, George W. Perkins.
Present, George W. Perkins.
August 23, 1910.
August 30, 1910.
September 6, 1910.
September 13, 1910.
September 20, 1910.
September 27, 1910.
October 4, 1910.
October 11, 1910.
October 22, 1910.
November 1 , 1910.
November 7, 1910.
November 15, 1910.
united states steel ooepoeation. 3879
November 22, 1910.
Present, George W. Perldns.
December 6, 1910.
Present, George W. Perkins.
December 13, 1910.
Present, George W. Perkins.
Mr. Walker finally accepted offer of $2,000,000 for his lands; recom-
mended November 7, 1910.
December 20, 1910.
Present, George W. Perkins.
Walker land purchase included further purchase of another
Walker tract of about 1,140,000 tons of ore for the price of 10 cents
per ton.
December 27, 1910.
Present, J. P. Morgan, jr., George W. Perkins.
<
January 3, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
January 10, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
January 17, 1911.
Pr?!sent, George W. Perkins, J. P. Morgan, jr.
Chairman presented a letter addressed to him by James M. Swank,
under date of January 12, urging the contribution of $4,000 toward
the $9,000 to pay the expenses of a second edition of a book entitled
"Protection andf Prosperity, " written by Hon. George B. Curtiss,
Binghamton, N. Y.
On motion and by an affirmative vote of all present, the question
was referred to the chairman, with power.
January 24, 1911.
Present, George W. Perkins, J. P. Morgan, jr.
January 31, 1911.
Present, George W. Perkins, J. P. Morgan, jr.
February 7, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
February 14, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
February 21, 1911.
Present, George W. Perkins in chair.
February 28, 1911.
Present, George W. Perkins, J. P. Morgan, jr.
March 7, 1911.
Present, J. P. Morgan, jr.
March 16, 1911.
Present, J. P. Morgan, jr
3880 united states steel coeporation.
March 21, 1911.
Present, J. P. Morgan, jr.
March 22, 1911.
Present, J. P. Morgan, jr.
April 4, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
April 11, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
April 14, 1911.
Present, J. P. Morgan, jr.
April 18, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
April 25, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
May 2, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
Mat 5, 1911.
Mat 9, 1911.
•
Mat 16, 1911.
Mat 23, 1911.
Mat 31, 1911.
June 6, 1911.
June 13, 1911.
JxmE20, 1911.
June 26, 1911.
Present, J. P. Morgan, jr., George W. Perkins.
Present, George W. Perkins, J. P. Morgan, jr.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins.
Present, J. P. Morgan, jr., George W. Perkins,
"!g;Ten million dollars, par value, Illinois Steel Co. debentures, 1940,
owned by the corporation, sold to J. P. Morgan at 92^ and interest.
SUPPLEMENTAL EXTKACTS FROM FINANCE COMMITTEE
MEETINGS.
December 1, 1903.
Meeting of finance committee.
[Copy of letter to J. P. Morgan & Co.]
Messrs. J. P. Morgan & Co., New York City.
Dear Sirs: Eef erring to your contract with this corporation covering the conver-
sion of its preferred stock into the new 5 per cent bonds, the prices of the two securities
have become so widely separated that we feel justified in bringing the situation to
your attention. The contract was entered into with an almost unanimous approval
of the stockholders of the corporation, and its validity and propriety in every respect
have been sustained by the courts in bitter litigation which has been prosecuted
against the corporation. Nevertheless, in view of the interest of yourselves and your
associates in the success of the corporation, we think it not improper to suggest that
the continuance of the conversion at the present wide disparity in prices may be in-
jurious to the corporation's credit and hurtful to the interests of its stockholders. We
believe that the operations of the syndicate up to this time have resulted in great
and permanent benefit to the corporation, but in view of the present abnormal price
conditions, which could not have been foreseen, we think any further conversions at
this time might not be for the corporation's advantage and that you may. therefore
feel justified in surrendering the contract. Should you accede to our suggestion and
surrender the contract, the corporation will, of course, hold you harmless against any
claims of the syndicate participants by reason of such surrender.
Yours, very truly,
E. H. Gary,
Chairman of Board of Directors, United States Steel Corporation.
The reply to tte above letter:
Hon. E. H. Gary,
Chairman Board of Directors, United States Steel Corporation,
71 Broadway, New York.
Dear Sir: We are in receipt of your letter of this date suggesting that we surrender
to the United States Steel Corporation our contract for conversion of its preferred
stock into the new 10-60 year 5 per cent sinking fund gold bonds. We appreciate
the disadvantage of continuing the conversion at the present market prices and we are
therefore willing and hereby consent to cancel and terminate said contract beyond
conversion of the amount of $150,000,000, which is now nearly completed. This of
course is upon condition that your corporation shall hold us harmless, as stated in
your letter, and this correspondence shall constitute the binding agreement of both
parties according to its terms.
Yours, very truly, J. P. Morgan & Co.
December 22, 1903.
Finance committee (page 253 of minutes).
[Copy of letter from J. P. Morgan & Co. and reply thereto.!
New Yore, December 21, 1903.
Richard Trimble, Esq.,
Treasurer United States Steel Corporation, 71 Broadway, New York.
Dear Sir: This day, in final completion of our obligations under our contract of
April 1, 1902, as terminated by the arrangement between the corporation and ourselves
upon November 19, 1903, we have, under a resolution of the board of directors of the
corporation, delivered to the United States Trust Co., as trustee, under the indenture
of April 1, 1903, uncanceled certificates of preferred stock of yoiu' corporation, making
3881
3882 UNITED STATES STEEL CORPORATION.
the total amount of 1,500,000 shares so delivered in exchange for §150,000,000 par
value of the corporation's 10-60 5 per cent second mortgage bonds. As you are aware,
we have at all times been prepared to make payment to the corporation for the
$20,000,000 of such bonds subscribed for by us in cash, but in view of the large cash
surplus already on hand, liability for the interest thereon at the rate of 5 per cent
per annum until the money was actually required for corporate purposes.
Upon October 1, 1903, we made payment to you for such §20,000,000 cash bonds as
follows: We paid over to your corporation the sum of $7,177,100, leaving subject to
recall of your corporation the residue of $12,822,900, accrued interest on the bonds to
be adjusted properly. In the meantime, of the $20,000,000 of such bonds, you have
delivered to us only $2,902,800 thereof, the remaining $17,090,200 thereof being held
by the corporation for the reasons above stated.
If it is the desire of your corporation that the matter should remain in this position,
we are willing to continue the arrangement during the convenience of the corporation
and will be prepared at any time to pay over the said sum of $12,822,900 and to take
over said $17,097,200 of bonds above stated, the interest being adjusted properly.
Yours, very truly,
J. P. Morgan & Co.
On motion and by the afELrmatiTe vote ot all present, the treasurer
was directed to send the following reply :
New York City, December 2Z, 190S.
Messrs. J. P. Morgan & Co., New York City.
Dear Sirs: By the direction of the finance committee of the United States Steel
Corporation, at the regular meeting held this day, I have to acknowledge the receipt
of your communication dated December 21, 1903, relating to the final completion of
your obligation under your contract of April 1, 1902, and to say that your letter cor-
rectly states the transaction, and that it is the desire and will of the finance committee,
for the corporation, that the arrangement and present condition stated by you shall
continue until the corporation shall desire the $12,822,900 in cash received referred
to in the last paragraph of your communication.
For the finance committee.
Yours, truly, Richard Trimble, Treasurer.
December 15, 1903.
Finance committee (p. 248 of minutes).
The president recommended that the Carnegie Steel Co. jointly
purchase with the Bethlehem Steel Co., each company taking a half
mterest for the sum of $35,000, the patent of Cleland Davis, covering
the electric treatment of armor and method of decaping projectiles by
the use of steel deflectors attached to the face of the armor plate, and
stated that our option to purchase the patent is about to expire and
that the purchase is recommended by President Dinkey and by J.
Singer, superintendent of the armor department of the Carnegie
Steel Co.
By the affirmative vote of all present, the purchase was recom-
mended.
(Extract and note made by Mr. Kindl: This shows the working
agreement in re armor plate between the Steel Corporation and the
Bethlehem Co.)
December 22, 1903.
Finance committee (p. 252 of minutes).
Competition. — "The proposed action of the National Tube Co. to
reduce the rates on merchant pipe $3 to $4 per ton to meet competi-
tion was approved. "
December 29, 1903.
Finance committee (p. '255 of minutes).
Committee on International Nickel Co.
united states steel, coepobation. 3883
January 5, 1904.
Finance committee (p. 259 of minutes).
American Can Co. requested reduction in price of tin plate furnished
by the American Tin Plate Co. to American Can Co. After some dis-
cussion, the question was referred to tlie special committee composed
of Messrs. Corey, Gary, and Ream.
January 12, 1904.
Finance conunittee (page 263 of minutes).
Judge Gary, for the special committee on banks of deposit, rates of
interest on bank balances and fees paid to transfer agents, etc., pre-
sented the following partial report, which upon motion duly seconded
and by the affirmative vote of all present was approved, and the
committee discharged:
To thR finance, committee:
The special committee appointed t t ronsider and arrange for satisfactory terms con-
cerning the amount of compensation to be paid Messrs. J. P. Morgan & Co., for the pay-
ment of interest, maturing from time to time on the bonds of this corporation and the
business connected therewith ; and also the amount of interest to be allowed on the bal-
ances on deposit in the bank of Messrs. J. P. Morgan & Co. reports as follows: It has been
mutually agreed that until hereafter changed by mutual agreement or notice, there
shall be paid as compensation for the payment of interest on the bonds above men-
tioned one-eighth of 1 per cent instead of one-quarter of 1 per cent, as heretofore.
Also. that hereafter, until changed by mutual agreement or notice, interest shall be
allowed by Messrs. J. P. Morgan & Co. at the rate of 3 per cent per annum for 60 per
cent of the aggregate balances and 2 per cent per annum for 40 per cent of the aggregate
balances. It will be observed this results in an average of 2.6 per cent on the total or
aggregate balance.
Respectfully submitted.
E. H. Gary,
H. C. Frick,
Robert Bacon.
January 12, 1904.
(Note the sale of the Shelby Steel Tube Co., buildings and equip-
ment of the Toledo and Albany plants to G. H. Clowes for the sum
of $100,000.)
■ February 16, 1904.
Finance committee (p. 273 of minutes).
(Note purchase of boiler tube plant at Buffalo.)
March 8, 1904.
Finance committee (p. 279 of minutes).
Monthly report of the sundry sinking funds and the securities pur-
chased for them. Letter was read from Drexel & Co., of Philadelphia,
in regard to an extension of syndicate agreement in connection with
the subscription of $5,000,000 for WUHam Cramp & Son's Ship &
Engine Building Co. 5 per cent notes secured by consolidated mort-
gage bonds until January 1, 1906, unless sooner terminated at the
option of the syndicate managers. Whereupon, on motion and by
the affirmative vote of all present, the treasurer was authorized and
instructed to consent to such extension on behalf of this corporation.
March 22, 1904.
Finance cormnittee (p. 262 of minutes)..
A letter was read from Mr. Dickson to Mr. Corey, in regard to the
policy of selling semifinished material to competitors of our various
companies, and, upon motion duly seconded and by the unanimous
31572— No. 53, pt. 2—12 10
3884 UNITED STATES STEEL COEPOEATION.
vote of all present, it was resolved that the question be, and hereb|y it
is, referred to a special committee composed of Messrs. Gary, Frick,
and Rogers.
April 27, 1904.
Finance committee (p. 295 of miautes).
Note that it was reported to the committee that the plant belonging
to William Wharton Steel Co. could be secured, and, on motion and
by the affirmative vote of all present, the subject matter was referred
to a special committee composed of Messrs. Gary, Frick, Corey, and
Widener, with the request that the committee consider the matter
and make report of their views at some future meeting.
July 5, 1904.
Finance committee (p. 319 of minutes).
President Corey, for the special committee, reported that the pur-
chase of the entirfe issue of tne capital stock of tne Trenton Iron Co.
had been concluded, in accordance with the terms of a letter dated
June 30, 1904, addressed to Mr. Erskine Hewitt by the president of
the United States Steel Corporation, payment to be made in $500,000
Ear value of 10-60 year bonds of the corporation, which bonds are to
e redeemed by this corporation at par at various dates, beginning
March 1, 1905.
July 13, 1904.
Finance committee (p. 321 of minutes).
The president reported that the negotiations with the American
Can Co. had been dropped; at all events, for the present.
Letter from President BufBngton, of the Illinois Steel Co., to Presi-
dent Corey, urging the purchase for the Illinois Steel Co. of an option
on certain coal lands in Illinois. Matter was referred to Messrs.
Perkins, Frick, Corey, and Ream to consider and report.
January 15, 1906.
FinanciB committee (p. 504 of minutes) .
The chairman of the board further reported that he was in confer-
ence with the railway officials concerning the removal and relocation
of certain railroad tracks and also with reference to the question of
rates from the coal district to the Indiana plants.
November 30, 1909.
Finance committee (p. 974 of minutes) .
Hewitt and Edenborn resigned and Samuel Mather and Percival
Roberts filled the vacancies.
(Mr. Mather is also a big stockholder and interested in the Lacka-
wanna Co.)
Mat 31, 1910.
Finance committee (p. 1034 of minutes).
The chairman presented an opinion signed by attorneys McVeagh,
Kellogg, Reed, Severance, and Knapp relating to terminal allowances,
etc. On motion it was recommended that local officials be requested
to take up for consideration and dispose of the questions involved in
accordance with the opinion recommended, and that the chairman be
requested to write to the local officials explaining the views of the
committee.
SUPPLEMENTARY EXTRACTS FROM FINANCE COMMIT-
TEE AND DIRECTORS' MINUTES OF UNITED STATES
STEEL CORPORATION.
United States Steel Corporation — ^Board of Directors'
Seventy-Second Meeting.
New York, June 26, 1906.
Present: Gary, Frick, Rogers, Morrison, Perkins, Converse,
Gayley, Hughitt, J. D. Rockefeller, jr., Corey, Baker, Nathaniel
Thayer, Griscom.
Gary in chair.
* * * * * ^ *
Also, the finance committee of our corporation appointed a special
committee to investigate and ascertain what connection, if any, the
officers of this corporation have with outside companies with whom
we might expect to do business or with whom we had been or were
doing business. These officers are making full written reports to
the special committee concerning these matters. The fiaaance com-
mittee also appointed a special committee to make inquiry in refer-
ence to the mterests of the members of the committee m outside
companies, the idea being, as I said, to have an open, clear under-
standing, so that there shall be no right on the part of any outside
influence to criticize the action of the company.
You also perhaps saw a statement in the newspapers this morning
that the Government was making investigations of the United States
Steel Corporation, and that Mr. Smith, one of the deputies in the
commissioner's department, had testified before the committee to
that effect. I have no doubt the deputy did make the statements
which were published. At the last session of Congress a resolution
was passed by both Houses asking the commissioner to investigate
the United States Steel Corporation. The commissioner did not pay
any attention to that resolution; but soon after Congress adjourned
he appeared at this office and stated that he believed it was his
duty to know the general purposes in detail of our business, about
our corporation, its capital stock, its liabilities, its assets, the amount
of its business, the costs of production, and its methods generally.
After considering the question very carefully, our finance committee
seemed to think that it was good policy, and, perhaps, advisable, to
aid the commissioner in making his investigation; and the investi-
fation has been going on more or, less since that time. As stated,
owever, by the deputy commissioner, we decided to furnish the
information that was requested at our own expense and by our own
labor. The questions which have been asked are very numerous,
3885
3886 UNITED STATES STEEL COKPOEATION.
very searching, and very comprehensive, and we have undertaken
to answer these questions in detail. They involve a great deal of
labor on the part of our of&cials, and of the subsidiary companies
particialarly — so much so that, with respect to many subjects, the
representatives of the department have said that they would not
have the time to go over it if we went further into detail or covered
a longer period.
I am making this explanation because you are interested in it and
because you may be more or less disturbed without reason. The
finance committee has been in close touch ^vith the matter all the
time. We have been in frequent and almost constant communica-
tion with Commissioner Garfield, and more or less with the President
himseK, concerning these matters. Up to date they have made no
complaint of us whatever; but we do not know any better than you
do what may be the future. We are trying to be frank and accom-
modating to" the department, and we suppose we have an under-
standing that we will not be unnecessarily injured and that we will
not be wrongfully charged without having an opportunity to show
the facts. We have seen nothing to show us that we need anticipate
any trouble. Quite likely in some respects we may be traveling very
near the line between propriety and impropriety. We are not trying
to place ourselves on any pedestal, but we propose to get right and
keep right, and are trying to satisfy the powers that be, if we can,
and keep out of trouble, if possible.
So far as our business is concerned, we have no reason to complain.
Up to the 21st of the month, the last date of which we have a record,
our bookings, on the average, were about 36,000 tons per day (above
our capacity), as against a httle over 30,000 last month and as against
about 18,500 the same period last year, showing that for the season
our bookings are very large, because this is the dull season. Our
Erospects, judging by our present business and by our figures, and
y the trade letters we receive from our selling departments, are very
bright, indeed. There is no speck on our horizon, from what we have
seen and what we can see.
Are there any questions, any suggestions, or further business ?
On motion, duly seconded, the committee adjourned.
Richard Thimble. Secretary.
April 22, 1901.
(P. 20.) Shelby Tube Co. Government.
April 22, 1901.
(p. 20.) shortage of ore-carrying capacity on the lakes.
Judge Gary in the chair.
The president stated that from reports made to him we will have
about 3,000,000 tons of ore to bring down, for which we have not
enough carriers. It was suggested that the president take steps to
cover ourselves for about half of this surplus, and it was therefore
moved and seconded that the president is authorized to charter about
half of this capacity and let the other half be taken care of later by
wild carriers.
united states steel oorpoeation. 3887
April 23, 1901.
steel-cab construction.
Mr. Roberts asks if this company would favor going into the enter-
prise of naaking steel cars. He is not in favor of building a plant
until he loiew how successful the car was going to be. The president
stated that he thinks it would not be advisable for us to go into the
steel-car building; the Pressed Steel Car Co. is now the best customer
the Carnegie people has, and that we could not afford to take the posi-
tion of a competitor; that that company pays $100,000 a year to the
Carnegie Co. to keep out of the car busmess.
It was finally recommended that no action be taken at present in
reference to contracts for building cars.
June 17, 190U
(P. 74.) Judge Gary in the chair.
The following suggestions were put forth by Mr. Steele, were
finally voted upon, and the president instructea to hand it to the
presidents :
That we are unalterably opposed to any extension of union labor,
and advise subsidiary companies to take a firm position when these
questions come up and say that they are not going to recognize it;
that is, any extension of union in mills where they do not now exist;
that great care should be used to prevent trouble and that they
promptly report and confer with this corporation.
June 24, 1902.
american protective league subscription.
Charles Steele in the chair.
The president presented the matter of subscription to this league,
and, upon motion duly seconded, it was voted that we subscribe
thereto to the extent of about $3,000.
May 12, 1903.
monroe ore property.
Corey in the chair.
In accordance with a Mr. Frasier's figures, and as the lease the
first 28 years to run on the basis of 50 cents a ton royalty, this
royalty on the basis of 4 per cent for a period of the lease, as a present
cash value is 30 cents per ton. The securing of the property
therefore on this basis womd not cost more than on the present basis,
and we wUl be sure of a perfect contract on the ore which will hand
us 35 cents per ton. In other words, by securing a perfect contract
we secure the ore in this property free of royalty, and profit on the
perfect contract more than compensating for the royalty.
(See contracts between United States Steel Corporation and J. P.
Morgan & Co., dated March 1, 1891, and May 1, 1891, authorizing
Morgan company to pufcha'se stock of subsidiaries.)
January 6, 1902.
(P. 38.) Minutes of directors' meeting.
Your committee proposed, in connection with the suggestion of J. P. Morgan &
Co., and as a consideration for any release by the corporation, that Messrs. J. P. Morgan
& Co. relinquiah all right to compensation under agreement of April 1, 1901, and to
reimbursement for the purchase of shares of stock of the subsidiary companies at
enhanced prices, and your committee was informed that this proposition was accept-
able to Messrs. J. P. Morgan & Co.
3888 united states steel. cobpobation.
Januaey 2, 1902.
Letter of J. P. Morgan to finance committee of the United States
Steel Corporation :
We desire, if practicable, that such a final settlement, which it seems to us should
be by way of mutual releases, be had before we distribute the profits of the syndicate
among its members.
December 10, 1901.
(P. 39.) Resolved, That the compensation to be paid to Hudson
Trust Co. for acting as transfer agent of this United States Steel Cor-
poration shall be the sum of $10,000 per year and its actual expenses
incident to the transfer of the stock of this corporation; such expenses,
however, shall not exceed an amount to be approved by the treasurer
of this corporation.
March 17, 1903.
(P. 168.) Judge Gary, as special committee on Clairton Steel Co.,
reported that Mr. Snyder proposed that this company should acquire
55 per cent of the stock of the Clairton Steel Co. on a basis of actual
cost, and that the Crucible Steel Co. should retain 35 per cent and
Mr. Snyder 10 per cent, and, further, that the Clairton Steel Co. should
enter into a 10-year contract with the Crucible Steel Co., under which
the former should agree to supply the latter with a maximum of
200,000 tons of steel per annum at $3 a ton below the market price.
After some discussion, at the request of the chairman of the finance
committee, the question was referred to Judge Gary and Mr. Frick to
negotiate further with Mr. Snyder and to report at a special meeting
of this committee to be held at 1 o'clock p. m. on Thursday, March
19, 1903.
March 19, 1903.
(P. 170.) The special committee on Clairton property reported that
they had negotiated a proposition for the sale to this corporation of
55 per cent of the Clairton Steel Co. on the basis of actual original
cost, the Crucible Steel Co. to retain 35 per cent and W. B. Snyder to
procure and hold 10 per cent. That the negotiations were conducted
with W. P. Snyder and Chairman Miller of the Crucible Steel Co.,
who will endeavor to secure the assent of aU the stockholders of the
Crucible Steel Co. That W. E. Corey, Thomas Morrison, and W. B.
SchiUer have been appointed a special committee to examine the
properties in question and report at their earliest convenience. That
accompanied with the proposition is a proposed arrangement between
this company and the Crucible Steel Co. for the total requirements of
iron and steel of the Crucible Steel Co. when and as the United States
Steel Corporation is in position to furnish the same. That the basis
for sale is as follows: When the average monthly market price of
steel, to be determined by mutual agreement, or by arbitration if
necessary, is over $22 per ton, a reduction to the purchaser of $2 per
ton; when $22 per ton or below, down to $15 per ton, a reduction of
7 per cent; when below $15 per ton, no reduction. When the average
monthly market price of pig iron, ascertained as above, is $20 or over,
a reduction of $1.50 per ton to the purchaser; when under $20 a ton,
down to $16, a reduction of 7 per cent; when below $16 and down
to $14, a reduction of 5 per cent; when below $14, no reduction.
That the leading interests are not to engage in competitive busi-
ness. That Mr. Snyder will be connected with the management of
TTITETED STATES STEEL. COBPOBATION. 3889
the Clairton properties during the pleasure of this corporation on a
salary to be fixed by agreement or by Mr. Frick if officials can not
agree, and while so connected will not engage in competitive business.
That the expenditures up to the present date, represented to
amount to about $10,250,000, have been paid in 5 per cent bonds of
the Clairton Steel Co., guaranteed by the Crucible Steel Co., 55 per
cent of which this corporation will assume in payment for the 55 per
cent iaterest as above.
On motion, the subject matter was rereferred to the chairman of the
executive conomittee to close on the above basis provided the treas-
urer can arrange with Pittsbuigh banks for 55 per cent of the addi-
tional cash required to complete and for working capital, payable on
or before 5 years, at not exceeding 5 per cent interest.
(As far as taken off vntil page 261.)
FIXANCE COiQIITTEE MEfUTES.
Decembek 1, 1903.
(P. 241.) Copy of letter:
NOVEMBEE 19, 1903.
Messrs. J. P. Morgan & Co.,
Xew York City.
Deah Sras: Referring to your con tract ■with this corporation covering the con version
of its preferred stock into the new 5 per cent bonds, the prices of the two securities
have become so widely separated that we feel justified in bringing the situation to
your attention.
The contract was entered into with almost the unanimous approval of the stock-
holders of the corporation and its validity and propriety in every respect have been
sustained by the courts in the bitter litigation which has been prosecuted against the
corporation. Nevertheless, in view of the interest of yourselves and your associates
in the success of the corporation, we think it not improper to suggest that the con-
tinuance of the conversion at the present wide disparity in prices may be injurious to
the corporation's credit and hurtful to the interests of its stockholders.
We believe that the operations of the syndicate up to this time have resulted in
great and permanent benefit to the corporation, but in view of the present abnormal
price con<ntions, which could not have been foreseen, we think any further conver-
sions at this time might not be for the corporation's advantage and that you may
therefore feel justified in surrendering the contract.
Should you accede to our suggestion and surrender the contract the corporation
will, of course, hold you harmless against any claims of syndicate participants by
reason of such surrender.
Yours, very truly,
E. H. Gaby,
Cftairman of Board of Directors, United States Steel Corporation.
The reply to the above letter:
Xew York, November 19, 190S.
Hon. E. H. Gabt,
Chairman of Board of Directors, United States Steel Corporation,
No. 71 Broadway, New York.
Dear Sir: We are in receipt of yoiu- letter of this date suggesting that we surrender
to' the United States Steel Corporation our contract for conversion of its preferred
stock into the new 10-60 year 5 per cent sinking fund gold bonds.
We appreciate the disadvantage of continuing the conversion at the present market
prices, and we are therefore willing, and hereby consent, to cancel and terminate said
confract beyond conversion of the amount of .$150,000,000, which is now nearly com-
pleted. This, of course, is upon condition that your corporation shall hold us harm-
less, as stated in your letter, and this correspondence shall constitute the binding
agreement of both parties according to its terms.
Yours, very truly, J. P. Morgan & Co.
3890 UNITED STATES STEEL COEPORATION.
Extract from letter of W. B. Dickson, second vice president, to
President Corey. Common labor and other labor based on same:
It was agreed after full discussion to adopt as the maximum rate 14J cents per
hour, or $1.45 for 10-hour day, for all districts excepting Chicago. The present rate
varies from $1.40 to 11.60. Mr. Bufiington will establish $1.50 as the maximumirate
in Chicago, and, if practicable, will try for $1.45.
December 8, 1903.
(P. 246.) Presidents met in Pittsburgh, December 2 and 3.
December 22, 1903.
Copy of letter (p. 253) by the finance committee:
New York, December Si, 190S.
Richard Trimble, Esq.,
Treasurer, United States Steel Corporation,
71 Broadway, New Yorh.
Dear Sir: This day, in final completion of our obligations under our contract of
April 1, 1902, as terminated by the arrangement between the corporation and ourselves
upon November 19, 1903, we have, under a resolution of the board of directors of the
corporation, delivered to the United States Trust Co., as trustee under the inden-
ture of April 1, 1903, uncancelled certificates of preferred stock of your corpora-
tion, makmg the total amount of 1,500,000 shares so delivered in exchange for
$150,000,000 par value of the corporation's 10-60 year 5 per cent second mortgage.
As you are aware, we have at all times been prepared to make payment to the
corporation for the $20,000,000 of such bonds subscribed for by us in cash, but in view
of the large cash surplus already on hand, liability tor the interest thereon at the rate
of 5 per cent per annum until the money was actually required for corporate purposes.
Upon October 1, 1903, we made payment to you for such $20,000,000 cash bonds
as follows: We paid over to your corporation the sum of $7,177,100, leaving subject to
the call of your corporation the residue of $12,822,900 accrued interest on the bonds
to be adjusted appropriately. In the meantime, of the $20,000,000 of such bonds ^ou
have delivered to us only $2,902,800 thereof, the remaining $17,097,200 thereof being
held by the corporation for the reason above stated.
If it is the desire of your corporation that the matter should remain in this position,
we are willing to continue the arrangement during the convenience of the corpora-
tion and will be prepared at any time to pay over said sum of $12,822,900 and to take
over said $17,097,200 of bonds above stated, the interest being adjusted appropriately.
Yours, very truly,
J. P. Morgan & Co.
On motion and by the affirmative vote of all present, the treasury
was directed to send the following reply:
New York City, December 22, 190S.
Messrs. J. P. Morgan & Co.,
New York City.
Dear Sirs: By the direction of the finance committee of the United States Steel
Corporation at the regular meeting held this day, I have to acknowledge the receipt
of your commiinication dated December 21, 1903, relating to the final completion of
your .obligation under your contract of April 1, 1902, and to say that your letter cor-
rectly states transaction and that it is the desire and will of me finance committee
for the corporation that the arrangement and present condition, stated by you, shall
continue until the corporation shall desire the $12,822,900. * » * Cash residue
referred to in the last paragraph of yoiu- communication.
For the finance committee.
Yours, very truly, Richard Thimble, Treasurer.
Page No. 4. (Memo.) The annual or quarterly report of subsid-
iary companies to the United States Steel Corporation should be
subpoenaed.
united states steel, goepoeation. 3891
December 15, 1903.
Financial committee minutes (p. 248).
The president recommended that the Carnegie Steel Co. jointly
purchase with the Bethlehem Steel Co., each company taking a half
interest, for the sum of $35,000 the patents of Cleland Davis covering
the electric treatment of armor and method of decapping projectiles
by the use of steel deflectors attached to the face of the armor plate,
and stated that our option to purchase the patent is about to expire
and that the purchase is recommended by President Dinkey and by
J. S. Unger, superintendent of the armor department of the Carnegie
Steel Co.
By the affirmative vote of aU present, the purchase was recom-
mended.
Note. — This shows the working agreement in the armor plate
between the Steel Corporation and the Bethlehem Co.
(Page 252.) Finance committee.
COMPETITION.
December 22, 1903.
The proposed action of the National Tube Co. to reduce the rates
of merchant pipe $3 or $4 per ton to meet competition was approved.
December 22, 1903.
(P. 251.) Finance committee.
cancellation of morgan bond conversion contract.
The purchase of 800 acres of Connellsville coal land from J. V.
Thompson.
(P. 5.) On motion and by the affirmative vote of all present a
cash offer of $500,000 by the H. C. Frick Coke Co. was recommended.
December 29, 1903.
(P. 255.) Committee on international nickel.
November 3, 1909.
(P. 964.) Finance committee minutes.
Expenditure of $157,500 by the Duluth, Missabe & Northern
Eailway Co. for the construction of 4f miles of main line and three-
fourths of a mUe of siding to the Woodbridge mine.
(P. 966.) The two estimates of cost of steel car plant to be
erected at Gary. Mr. Thorp, $3,765,000. Mr. Reis, $3,500,000.
On ihotion the matter was laid on the table with the request that
the chairman make further investigation concerning the capacity
and the disposition of other manufactures and report to the com-
mittee.
January 5, 1904.
(P. 259.) Finance committee meeting.
American Can Co. requested reduction in price of tin plate fur-
nished by the American Tin Plate Co. to American Can Co. After
some discussion, the question was referred to the special committee
composed of Messrs. Corey, Gary, and Ream.
g
3892 UNITED STATES STEEL COEPOEATION.
(P. 261.) Meeting of January 6, 1904, shows payment of $5,000 to
Society of Chemical Industry.
Same meeting. Handed proposition for part of Henderson farm
roperty, by A. & P. Eoberts Co., and the Philadelphia & Keading
.R.Co.
Same meeting. Upon motion and by the affirmative vote of all
present, the question of purchase of 50-year 5 per cent gold bonds,
for sinMng-fund purposes. Was referred to Judge Gary and the
treasurer with power.
Same meeting. On motion and by the affirmative vote of all
present, the treasurer was directed to invest a million dollars with
10-60-year 5 per cent sinking fund gold bonds at 70 or better, as
an investment for general depreciation and extinguishment funds.
Janttaet 12, 1904.
(P. 262.) Mr. Perkins (in the chair); Gary, Bacon, Ream, Frick,
Widener, Rogers, and Corey, present.
The treasurer presented his monthly report of various sinldne
funds, and investments held for them, and in this connection reported
the purchase of 1704,000 of 10-60 year 5 per cent sinking fund gold
bonds, as authorized at meeting of January 6.
Upon motion, and by the affirmative vote of aU present, the
treasurer was directed to continue the purchase untU a million dollars
had been invested, using his discretion as to price.
January 12, 1904.
(P. 263.) Special committee appoiated to consider the proposed
contract between the American Tia Plate Co. and The American Can
Co. reported that it had recommended the closing of contract on a
basis of $3.35, which, upon motion, duly seconded, was approved.
Same meeting. Judge Gary, for the special committee on banks of
deposit, rates of interest on bank balances, and fees paid to transfer
agents, etc., presented the foUo wing partial report, which, upon
motion, duly seconded, and by the affirmative vote of aU present,
was approved, ajid the committee continued.
To the Finance Committee :
The special committee appointed to consider and arrange for satisfactory terms con-
cerning the amount of compensation to be paid Messrs. J. P. Morgan & Co. for the pay-
ment of interest maturing from time to time on the bonds of this corporation and the
business connected therewith, and also the amount of interest to be allowed on balances
on deposit in the bank of Jlessrs. J. P. Morgan & Co., reports as follows:
It has been mutually agreed that until hereafter changed by mutual agreement or
notice there shall be paid as compensation for the payment of interest on the bonds
above mentioned one-eighth of 1 per cent instead of one-quarter of 1 per cent, as
heretofore.
Also, that hereafter, until changed by mutual agreement or notice, interest shall be
allowed by Messrs. J. P. Morgan & Co. at the rate of 3 per cent per annum for 60 per
cent of the aggregate balances and 2 per cent per annum for 40 per cent of the aggre-
gate balances. It will be observed this results in an average of 2/^ per cent on the
total or aggregate balance.
Respectfully submitted. '
E. H. Gary.
H. C. Frick.
Robert Bacon.
January 12, 1904.
UNITED STATES STEEL, COEPOBATION. 3893
Same meeting. Note sale of Shelby Steel Tube Co., buildings and
equipment of the Toledo and Albany plants to G. H. Clowes for the
sum of $100,000.
Same meeting (p. 265). Judge Gary reported that owing to the
great faUiag off in earniags for the last quarter of 1903 the amount
of bonus paid in cash, together with the amount reserved for invest-
ment in preferred stock, for the first three quarters of 1903 exceed
the total amount applicable for bonus for the entire year by about
$98,000.
Upon motion, duly seconded, and by the affirmative vote of aU
present, it was
Resolved (1) Not to charge to participants the amount overpaid in cash or any part
of the amount heretofore reserved for investment in preferred stock.
(2) That the price of the preferred stock for bonus distribution of 1903 be, and it
hereby is, fixed at $56 per share, minus extra dividend, January 19, 1904.
(3) If the amount of any employee's bonus entitles him to a fraction of a share that
such fractional amount shall be paid in cash.
(4) If an employee is entitled to an odd number of shares he shall be entitled to now
receive one-half of his allotment and one-half of one share added; the other half, less
one-half of one share, to be retained by the United States Steel Corporation for five
years, in accordance with the circular letter of December 31, 1902.
January 26, 1904.
(P. 266.) Payment of $1,000 to the American Society for Testiag
Materials as a donation toward its expenses.
Also consunmiation of sale by Shelby Steel Tube Co. of the build-
ings and equipment of the Toledo and Albany plants.
Same meetmg. Judge Gary, for the special committee on Inter-
national Nickel Co., reported that it had recommended a contract
with the International Nickel Co. covering our total requirements for
the period from January 1, 1904, to December 31, 1909, at the price
of 30 cents per pound, but with the guaranty that the price shaU
always be 5 cents per pound less than on sales to other customers,
with the exception of the Bethlehem Steel Co., and with a minimum
of 500,000 pounds per year.
February 9, 1904.
(P. 272.) Note that 30,550 shares of preferred stock at 56 were
sold to employees. I refer you in this connection here to meeting on
January 12, 1910.
February 16.
(P. 273.) Note purchase of boiler tube plant at Buffalo.
March 8, 1904.
(P. 279.) Monthly report of the sundry sinldng funds and the
securities purchased for them. Letter was read from Drexel & Co.,
of Philadelphia, in regard to an extension of syndicate agreement in
connection with the subscription of $5,000,000 for William Cramp &
Sons Ship & Engine Building Co.
Five per cent notes secured by consolidated mortgage bonds until
January 1, 1906, unless sooner terminated at the option of the
syndicate managers. Whereupon, on motion, and by the affirmative
vote of all present, the treasurer was authorized and instructed to
consent to such extension on behalf of this corporation.
3894 UNITED STATES STEEL COEPOEATIOJST.
ilARCH 22, 1904.
Page 281:
Resolved, That the question of reducing the rate of interest of paying oft individual
deposits with some of the subsidiary companies, payable on demand and now running
at 4, 5, and 6 per cent, be referred to the treasurer, with power.
Same meeting (p. 281): "
Resolved, That a contribution of $5,000 be made by thi^ corporation to Mr. Kirch-
hoff as chairman of the American reception committee for the British Iron and Steel
Institute meeting, to be held in October of this year.
(Mr. KircliholT was the chief editor of the Iron Age.)
March 22, 1904.
(P. 282.) A letter was read from Mr. Dickson to Mr. Corey in
regard to the poUcy of selhng semifinished material to competitors of
our various companies; and upon motion, duly seconded, and by the
unanimous vote of all present, it was
Resolved, That the question be, and hereby it is, referred to a special committee,
composed of Messrs. Gary, Frick, and Rogers.
April 5, 1904.
(P. 286.) Judge Gary, for the special committee on sale of semi-
finished products, reported that the committee had listened to a full
discussion of the subj ect matter by presidents of subsidiary companies
and others interested, and had decided to recommend that, for the
present at least, subsidiary companies who are manufacturing semi-
finished products do not sell the same to outsiders in competition with
subsidiary companies who are manufacturing finished products from
such semifinished products, without the consent of the subsidiary
company interested, which, upon motion duly seconded, was
approved.
April 13, 1904.
(P. 289.) The treasurer made his monthly statement of securities
held for general investment and for various sinking funds. (What
are these securities ?) On the same page note progress that had been
made in the matter of Clairton Steel Co. purchase. Also a letter from
President Schiller to President Corey was read^ urging a lease for five
years, at about $15,000 per year, of the Eastern Tube Co., of Zanes-
ville, Ohio.
April 19, 1904.
(P. 293.) Judge Gary, as special committee on the Clairton prop-
erty, reported in favor of the acquisition of the property on the basis
named, provided a satisfactory form of agreement for purchase could
be obtained, and all representations should be verified by examination.
On motion it was unanimously —
Resolved, That the subject matter be referred to a special committee, consisting of
Messrs. Grary, Corey, and Filbert, with authority to continue negotiations and agree
if possible upon a form of contract for sale and purchase, and to report the same at the
next meeting of this committee for further consideration.
April 27, 1904.
(P. 295.) It was reported to the committee that plant belonging to
Wilham Wharton &Co. could be secured, and on motion and by the
affirmative vote of all present the subject matter was referred to a
special committee, composed of Messrs, Gary, Frick, Corey, and
Widener, with the request that the committee consider the matter and
make report of their views at some future meeting.
united states steel goepokation. 3895
April 28, 1904
(P. 296.) Progress had Ijeen made on Clairton property.
April 29, 1904.
(P. 297.) Judge Gary, for the special committee on Clairton prop-
erty, submitted a form of contract for the purchase of the Clairton
steel properties and recommended its execution. On motion and by
the affirmative vote of all present the report was adopted and the
execution and delivery of the contract authorized.
May 10, 1904.
(P. 301.) Committee reports progress on purchase of plant belong-
ing to Wilham Wharton & Co.
May 24, 1904.
(P. 305.) Plant belonging to William Wharton & Co., reported
that the committee does not favor the purchase.
Same meeting (p. 306).
May 31.
Page 307 :
Resolved, That the treasurer of this corporation be, and hereby he is, authorized
and directed to take all steps necessary to affect the transfer of stocks to the United
States Trust Co. of New York, as trustee, in accordance with the provisions of section 5
of article 2 of the indenture dated April 1, 1901, and of section 5 of article 2 of the
indenture dated April 1, 1903, subject, however, to the advice and approval of the
general counsel of the corporation.
Same meeting (p. 308). On motion, duly seconded, and by the
affirmative vote of all present, the following resolutions were adopted :
Whereas the United States Trust Co. of New York, as trustee, has agreed to pur-
chase from the United States Steel Corporation $767 of the 50-year 5 per cent gold
bonds of the United States Steel Corporation issued under the indenture dated April
1, 1901, and registered in the name of Richard Trimble, treasurer. United States
■ Steel Corporation; and
Whereas the United States Steel Corporation has agreed to sell the said bonds to the
United States Trust Co. of New York, as trustee: Therefore, be it
Resolved, That Richard Trimble, treasurer, be, and hereby he is, authorized and
directed to transfer and deliver to the United States Trust Co. of New York, as trustee,
the following 50-year 5 per cent gold bonds of the United States Steel Corporation,
aggregating $767 par value, issued under the indenture dated April 1, 1901, and to
execute any and all papers necessary to carry out and complete such transfers.
June 7, 1904.
(P. 310.) On motion, and by the affirmative vote of all present,
the proposition to purchase for 1500,000 to $575,000 the Trenton
Iron Co., belonging, to the Hewitts, as outlined in a letter from Pres-
ident Palmer to Judge Gary, under date of the 1st instant, was
referred to a special committee composed of Messrs. Perkins, Corey,
and Frick, with power.
June 14, 1904.
(P. 312.) Special committee on Trenton Iron Co. reports prog-
FGSS
June 28, 1904.
(P. 316.) Kesignation of Mr. Charles M. Schwab.
Same meeting (p. 317). On motion, duly seconded, and by the
unanimous vote of all present, it was
ijResolved, That the chairman be, and hereby he is, authorized to purchase for the
sinking fund of the 50-year 5 per cent gold bonds of the corporation, $1,000,000, par
value, of the short series 50-year bonds, at 107, flat, on the 1st of July next.
3896 united states steel coeporation.
June 29, 1904.
(P. 318.) The subject matter of some arrangement with the
American Can Co. was discussed at some length.
July 5, 1904.
(P. 319.) Mr. Perkins reported that he had purchased $1,000,000
series A 50-year bonds of the corporation at 107, as of July 1, for
the purposes of the sinking fund of such bonds.
President Corey for the special committee reported that the pur-
chase of the entire issue of the capital stock of the Trenton Iron Co.
had been concluded in accordance with the terms of a letter dated
June 30, 1904, addressed to Mr. Erskine Hewitt by the president of
the United States Steel Corporation, payment to be made ia 1500
par value, of 10-60 year bonds of the corporation, which bonds are
to be redeemed by this corporation at par at various ^dates, beginning
March 1, 1905.
JuLT 5, 1904.
(P. 319.) The Secretary read a letter from De Forest Bros., coun-
sel for the Husdon Trust Co., to the general solicitor of this corpora-
tion, under date of May 17, 1904, and a letter from the general solic-
itor to the secretary, under date of June 21, explaining New York
Senate bill No. 1306, prohibiting foreign corporations from acting as
transfer agent in the State of New York, and recommending a plan
for handling the transfers of our stock in conformity with the new
law, and recommending
Same meeting (p. 320). On motion, duly, seconded, and by the
affirmative vote of aU present, the question of further negotiations
with the American Can Co. was referred to the president with power.
July 13, 1904.
(P. 321.) The president reported that the negotiations with the
American Can Co. had been dropped, at aU events, for the present.
Same meeting (p. 321). Note letter from President Buffington of
the Illinois Steel Co. to President Corey, urging the purchase for
the Illinois Steel Co. of an option of certain cod lands in Illinois.
Matter was referred to Messrs. Perkins, Frick, Corey, and Ream, to
consider and report.
July 13, 1904.
(P. 321.) The question of buildiag a branch 6 imles in length
connecting the E. J. & E. Railway with the Rockdale plant of the
American Steel & Wire Co., and which had been objected to by the
Rock Island Railroad was referred to the president, with power.
July 21.
(P. 323.) Option on coal lands in Illinois continued.
July 26.
(P. 326.) Ditto.
August 2.
(P. 320.) American Steel & Wire Co. had a large accumulation of
unsold product in the warehouse at Memphis, aggregating total value
of $700,000, $500,000 of which was ia a smgle warehouse of poor con-
struction, as indicated by the insurance rate of 3 per cent, being more
UNITED STATES STEEL. OOEPOBATION. 3897
than twice as much as the rate on goods in warehouses throughout the
country in which our product is stored. (This goes to show the
enormous warehouse interests throughout the country.)
August 30, 1904.
Special committee was appointed with power of makiag a contract
with the International Harvester Co.
September 7.
(P. 337.) The International Harvester committee reports progress.
(Same date, etc.) A letter signed by Messrs. T. F. Cole and W. J.
Olcott was read recommending the lease by the Oliver Mining Co., of
ore property on the Mesabi Eange near Hibbing, situated in lot 12,
section 6, township 58, range 15, where 640,000 tons of Bessemer ore
has been located. The term being a cash payment of $2,500, and 35
cents a ton royalty; lease to run for 30 years, with a minimum of
25,000 tons per year for first three years and 50,000 tons thereafter.
Mr. Gayley considered the price too high. The question was referred
to Judge Gary, with power.
September 20.
(P. 339.) Judge Gary, for the special committee on contract with
the Harvester Co., reported that that company had dechned the
proposition made to it and had made a counter proposition, which is
not acceptable to us, and the committee was thereupon continued.
(Same page.) Judge Gary stated that as the American Steel &
Wire Co. was strong ia cash it might be desirable in closing the pur-
chase for the Trenton plant to make payments in cash instead of in
bonds to be redeemed at par at short intervals during the next two
years, as provided in the contract. On motion, by affirmative vote,
matter was referred to Judge Gary, with power.
September 27.
(P. 341.) Judge Gary, special committee on matter of closing
purchase of Trenton Iron Co., reported that the purchase had been
concluded, and that payment had been made in cash for which the
corporation had obtamed a discount of $6,000.
(Same page.) A letter and telegram from President BufEngton of
the Illinois Steel Co. in regard to the failure of the Illinois Steel Co. to
conclude a working agreement with the International Harvester Co.,
and suggesting the advisability of purchasing the Acme Harvester Co.,
now in the hands of a receiver, in order to make an outlet for some of
•our products. The matter was referred to Messrs. Corey, Gary, and
Frick and Perkins, with power.
October 4.
(P. 345.) Letter was read from Jas. M. Swayne, general manager
of the Iron & Steel Association, by the chairman of the board, asking
for a subscription, and it was resolved that this corporation subscribe
$6,000 to the work of the association, and that the treasurer be directed
to make payment forthwith.
(P. 346.) The president brought up the question of the contract
between the Wabash & Union Railroad. After full discussion the
matter was referred to the president with the suggestion that after
consultation with Mr. Cassatt he again bring the subject to the atten-
tion of the committee. (You will please note that the Union Rail-
road belongs to the Carnegie Steel Co.)
3898 united states steel, corporation.
October 11.
(P. 347.) Urging the building of four ore boats at a price of
§410,000 each. ,
October 11.
(P. 347.) Letter from President Dincliey, Carnegie Steel Co., urging
the purchase of T. Campbell property at Clairton, now in the hands
of receiver, being about 5 acres, Ijiing next to the property which we
have got option m the Crucible Steel Co. The matter was referred to
the president and chairman of the board, with power.
November 1.
(P. 353.) Mr. Frick, of the special committee on options on cer-
tain coal lands in Illinois, reported that the special committee had
decided to recommend that purchase be made. Whereupon recom-
mendation of the committee was approved and details of the purchase
referred to the same committee, with power.
November 1.
(P. 355.) Price of rails to be sold in neutral markets. The presi-
dent brought up the question of making some arrangement with
foreign producers with regard to prices of rails to be sold in neutral
markets. After full discussion, the question was referred to Messrs.
Gary and Corey, with power.
November 10.
(P. 356.) Letter from Mr. Perley, as the result of his investigation
of the stocks of pig iron and scraps throughout the country.
November 15.
(P. 358.) Products of small tube plant at Helena, Ala., offered
for $30,000, was referred to Gary and Cory.
November 22.
(P. 359.) Letter from President Lynch with regard to probable
shortage of coke in case our plants are operated at capacity in the
near future, and recommend the purchase of 100,000 tons of Poca-
hontas coke. This was recommended.
December 6.
(P. 364.) The International Harvester committee reported that
after repeated conferences the committee had failed to reach any
agreement. The committee was discharged.
Same (p. 364.) The president stated that owing to the probable
shortage of coke, he requested the appointment of a committee with
power to purchase pig iron and scrap. Messrs. Gary and Corey were
appointed on this committee.
Purchase of claims in Illinois, December 6 (p. 365). Judge Gary
made a full report of negotiations on purchase of coal lands in Illinois.
This was agam referred to a special committee, Gary, Frick, Corey,
and Keam, with power.
Judge Gary also made fuU report of negotiations with regard to
interviews vriih Pennsylvania Railroad Co. people concerning pro-
posed Wabash-Union RaUroad contracts. (Union Railroad belongs to
Carnegie Steel Co.).
united states steel coepobation. 3899
December 13.
(P. 366.) Judge Gary, for the committee on purchase of pig and
scrap iron, reported that the committee had concluded purchase and
had purchased 25,000 tons of pig iron at $15.50 for immediate dehvery.
Gary, on special committee on purchase of option on leases of ore
property in the Hibbing district, reported that the committee recom-
mended the purchase, which was approved.
(Same page.) Judge Gary, for special committee on coke supply
shortage, reported the purchase of 25,000 tons of coke at $1.85 at
ovens.
Also, that the committee had reported the purchase from J. B.
Thompson of 970 acres of coal lands in ConneUsville district for
$950,000, and that the purchase had been made by H. C. Frick
Coke Co.
(P. 367.) Subject matter of consohdation of Masontown and New
Salem, ConneUsville Central Railroad, and the purchase of Shamrock
Branch Eailroad, as outlined in letters from Mr. Rea, dated November
19 and 29. It was referred to a special committee composed of
Messrs. Gary, Frick, and Perkins, with power.
It was also voted to recommend the National Tube Co. exchange of
properties between that company and the Peimsylvania Railroad
Co. and the Baltimore & Ohio Railroad Co. be made, as outlined in
written agreement submitted to and approved by the chairman of the
board, solicitor of the National Tube Co., and the sohcitor of this
corporation.
December 13.
(P. 368.) On motion, duly seconded, the following resolution was
adopted:
Resolved, That unless otherwise ordered by the chairman of the board, the secretary-
be, and hereby he is, authorized and directed to allow trustees to invest in any of the
securities of this company, without regard to the authority of the trustee or trustees to
make such investment; and
Resolved further, That all questions concerning the transfer by trustees of any of the
securities of the company are hereby referred to the chairman of the board and the
secretary with power to determine the same as they in their discretion may deem to be
for the best interests of the corporation.
December 20.
(P. 369.) Judge Gary, for special committee on consolidation of
Masontown and New Salem Railroad and the ConneUsville Central
Railroad and the purchase of Shamrock Branch Railroad, reported
that it has been decided to consolidate the Masontown and New
Salem RaUroad and the ConnellsviUe Central Railroad and to have
issued bonds for about 50 per cent of the cost of these two raUroads,
being 50 per cent of about $2,000,000, and to have returned to the
Union RaUroad by this corporation the sum of $120,000 advanced by
the former, then to distribute bonds between the United States Steel
Corporation and the Federal Steel Co. in proportion with the amounts
contributed by them respectively toward the cost of these railroad
properties. And also to have issued about $1,000,000 in stock and
to have the same distributed to this corporation and the Federal
Steel Co. in their proportion, and then to have a former lease and
operating contract executed between th§ consoUdated raUroad and
the Pennsylvania RaUroad Co. in accordance with and in con-
formity to the original contract, and that the necessary papers were
31572— No. 53, pt. 2—12 11
3900 ■ UNITED STATES STEEL COKPOEATION.
being drawn under the direction of Judge Reed, counsel at Pittsburgh,
and Mr. Lynch, who has general charge of the ConneUsviUe district.
On motion duly seconded by the affirmative vote of all present, the
foregoing report was approved.
December 23.
(P. 370.) Proposed purchase of the Oliver Iron Mining Co. of
the option and lease of the Whiteside ore property, as explained
in letter from Mj. Gary, Mr. Corey, and under date of Decem-
ber 19, transmitting the correspondence on the subject. Referred
to special committee composed of chairman of the board and the
president and the finance committee, ex officio members of all special
committees, and Messrs. Widener, Frick, and Bacon. (This must be
an important deal.)
December 27.
(P. 374.) Progress of option on coal lands in Illinois. Special
committee recommends purchase of tube plant at Helena, Ala.
January 10, 1905.
(P. 378.) Shortage of pig iron, and it is rec[uested that special com-
mittee be appointed to buy 25,000 tons of pig iron.
January 10.
(P. 379.) Considering the establishing of a plant at some seaport
point. Special committee consisting of ex officio members and
Messrs. Rogers and Ream appointed to consider a report, recom-
mends concerning the advisability of making purchase from H. C.
Frick of tract of land consisting of about 143 acres located at Clairton.
(Same date.) It was voted to recommend the Pittsburg Steamship
Co. (one of the subsidiary companies of the United States Steel Cor-
g oration) the sale to it of 500 shares of preferred stock of the American
hipbudding Co., now in the treasury of and belonging to the steam-
ship company.
January 17.
(P. 381.) Committee on purchase from H. C. Frick of tract of land
reported that they had secured an offer from Mr. H. C. Frick which
they considered fair and reasonable and recommended acceptance
of the same. The offer of !Mr. Frick to sell to this corporation or some
subsidiary company the land shown on map submitted located at
Clairton, contaming about 143 acres, for the price of $1,000,000,
payable in installments after the expiration of ten years, $100,000
annually, and with interest on all deferred payments at rate of 4.4
per cent per year, payable semiannually. Mr. Frick also offers as a
part of the transaction to provide on the same terms and conditions
a sufficient additional sum to pay the purchase price of land to be
purchased from the Crucible Steel Co. interests in the exercise of an
option heretofore given and also a tract of land belonging to and
offered for sale by Mr. Campbell, provided that the same shall be
purchased. Payment of these sums shall be secured on the real
estate in question guaranteed by the United States Steel Corporation.
The detads and forms of documents shall be arranged between
Mr. Frick and the chairman of the board.
united states steel, ooepokation. 3901
January 17.
(P. 382.) Lease of Canistea ore properties has been decided from
the Canistea Ore Co., their interest in ore on the Mesabi Range stated
in correspondence heretofore submitted on the basis of $500,000
bonus to be paid in installments and 37^ cents per ton royalty, which
AviU amount to one and a half mUhon tons per year.
(Same page.) Special committee on options on certain coal lands
in Illinois reported that contracts have been entered into between the
Illinois and the American Steel & Wire Co., American Bridge Co., and
the National Tube Co., with the Bering Coal Co. for 50 years' supply
of lUinois coal on terms and conditions heretofore discussed and as
stated in the written document heretofore exhibited. The contracts
as finally agreed upon do not provide for an extension of the trackage
right on the part of the Chicago, Lake Shore & Eastern Eailroad over
the Chicago & Eastern Illinois Railroad beyond the period of 17 years,
but reserves the right of the Chicago, Lake Shore & Eastern to make
similar contracts with other railroad corporations. This report and
act of the special committee was unanimously approved.
Judge Gary, for the special committee on Wabash-Union Railroad
contract, reported that he had an extended interview with Mr. Cassatt,
and gave to the committee somewhat in detail the result of same. On
motion, the special committee was continued for further consideration
and report.
January 17.
(P. 383.) The question of shortage of pig iron, under consideration
by the president and chairman of the board, reported purchase of
25,000 tons at $15.50 had been concluded.
January 24, 1905.
(P. 384.) Note sale of property for $20,000 of Empire Bridge
Works, Rochester, N. Y.
January 31.
(P. 387.) Moving machinery from Sharon tube plant.
(P. 388.) Note recommending purchase of Morgantown Tin Plate
Worlis by American Sheet & Tin Plate Co.
(Same page.) Special committee on Wabash-Union contract;
Judge Gary reported that he had some consultation with President
Cassatt and expected to have another interview with him within a
day or two, and that the president had received a letter from Mr.
Gould, which was then read to the committee.
(P. 389.) Judge Gary, as special committee on purchase of land at
Clairton, reported that a contract with Mr. H. C Frick for the pur-
chase of about 143 acres of land at Clairton and for financing the same
and other purchases contemplated had been executed and at his
request the chairman of the board and the president were authorized
from time to time to acquire outstanding lots located in the subdi-
vision called Blair Station, etc.
February 14.
(P. 393.) Note purchase of interest of W. P. Snyder in the Clairton
mine for $225,000 cash and 10 cents per ton royalty on all ore,
$20,000 minimum.
(Same page.) Note recommendation to pay $100,000 for Morgan-
town Tin Plate Works.
3902 united states steel cokpoeation.
February 21.
^P. 396.) Note authorization to buy 40,000 tons of pig iron at
$15.50.
February 28.
(P. 398.) Note letter from President Kamsey of Wabash Eailroad
to Judge Keed February 23, also letter from President Cassatt Feb-
ruaiy 27 addressed to chairman of the board. Was referred to the
chairman for action pursuant to the suggestions made.
March 7.
(P. 400.) Note cost of building one blast furnace at Mingo, cost
$1,090,000.
(P. 401.) Note subject matter of ptu-chase of the Passaic Rolling
MiU.
March 21.
(P. 404.) Note oflfer of a proposed lease to one of our companies
of a trackage right over the trackage of the Great Northern RaUroad
in connection with the Arcturus Mining property, as suggested in
letter addressed to the chairman of the board by Mr. Louis W. Hill,
vice president. Was referred to a special committee composed of ex-
ofEcio members and Messrs. Frick and Widener for investigation and
report.
March 29.
(P. 409.) Committee reported to recommend offer of $2,000,000
for the Hecla Coke Co. property, $200,000 cash and $200,000 annu-
ally for nine years at 4 per cent interest on deferred payments.
April 4.
(P. 410.) Note recommendation to purchase 40 lots in plan of the
Blair Land Co., Jefferson Township, Pa., not to exceed $154,000.
Ten lots in borough of Clairton, Pa., Nos. 5, 6, 12 to 16 and 26 to
28, all inclusive, at not to exceed $42,000. (These prices might be
checked up in connection with the other Clairton land sold by H. C.
Frick to the company.)
(Same page.) Authorization to purchase 33,000 tons of pig iron
for April deuvery, not to exceed $15.50 at furnace.
April 11.
(P. 414.) Note letter from Mr. J. A. Farrell on the subject of
Mnportations of iron and steel in 1902 and 1903, and suggesting a
plan by which this -company might keep in touch with future sales
of imported iron and steel in this coimtry.
(P. 414.) Note proposed contract between the Carnegie Steel Co.
and the Pittsburg Steel Co. for the latter's supply of billets which is
recommended to be made, also proposed contract between the Amer-
ican Sheet & Tin Plate Co. and the American Can Co. In connec-
tion with this, it is generally understood that Mr. Frick is a member
of the American Can Co.
April 18.
(P. 416.) The president submitted a report from ^Ir. A. F. Banks
as subcommittee on Great Northern trackage right, concerning the
matter of extending the Duluth, Missabe & Northern from Albom to
UNITED STATES STEEL OOBPOEATION. 3903
the ore lands at the western end of the Mesabi Range, known as the
Diamond, Arcturus and Canisteo properties, and alter some discus-
sion, further consideration of the matter was postponed for one week,
with the understanding that the chairman of the board should in the
meantime confer with Mr. J. J. Hill on the subject.
(Same page.) Note dismantling of the Hainsworth or Twenty-
sixth Street plant of the American Steel & Wire Co. at Pittsburgh.
April 25.
(P. 418.) Note subcommittee on proposed contract of the Pitts-
burgh Coal Co. reported that the contract substantially on the lines
approved by the committee at their meeting on April 5 had been con-
cluded, etc.
July 11.
(P. 444.) Chairman of the board reported that the question of
increasing the prices of structural steel has been under consideration
by the different manufacturers, and that they recommended that
action be postponed.
July 18.
(P. 446.) Note that agreements have been made with the United
States Fidelity & Guaranty Co., dated February 8, 1905, ratified,
approved and confirmed.
(Same page.) Note arrangements made with Wabash interests
whereby Steel Co. interests are allowed the use of track and cost of
maintenance divided.
JtTLY 25.
(P. 448.) President submitted to the meeting proposition to
receive from Charles G. Mcllvaia as attorney for the owners and
George I. Whitney offer to sell 16,000 acres of thick vein coal situated
in Washington and Greene Counties, Pa., and 800 acres of surface
at $400 per acre, on the basis of $200,000 in cash, the remainder in five
equal annual installments at 5 per cent. This offer was declined.
(Same page.) President Topping advises that the general admin-
istration of expenses of the American Sheet & Tin Plate Co. for the
6 months ended June 30, 1905, showed a gross saving of 37 cents per
ton compared with the same period of 1904.
September 5.
(P. 459.) The chairman of board, as subcommittee on additional
land near Chicago, reported that a contract had been made for the
purchase of the whole tract of land on lake shore for $450 an acre.
September 12.
(P. 461.) Recommended that Carnegie Steel Co. purchase 10,600
tons of pig iron at $15.
September 19.
(P. 464.) Recommended that the Carnegie Steel Co. purchase
40,000 tons of pig iron at $15 per ton.
September 26.
(P. 465.) Concentration of the Seamless Tube Plants as recom-
mended.
3904 united states steel corporation.
October 10.
(P. 470.) Offer of Pittsburg Coal Co. to seU us their Ked Stone
Field, contaiaiug approximately 7,980 acres of coal land and 606
acres of surface land, at 11,200 per acre, is declined.
November 21.
(P. 485.) Recommends the sale of 13,537 shares of stock of the
Harvey United Steel Co. (Ltd.), at 18s. 3d. per share, or better. (This
stock IS owned by the Carnegie Steel Co.)
December 12.
(P. 490.) Recommends purchase by the American Shee't & Tin
Plate Co. from the Colorado Fuel & Iron Co. of ten sheet and ten tin
mUls to be made at 25 per cent of their value, f. o. b. Denver, as
shown by President Topping to President Corey under date of
November 23.
December 19.
(P. 495.) Chairman was given power to purchase interest in the
LoweUsville Limestone Co., of LoweUsville, Ohio, for $26,000.
December 28.
(P. 497.) President read a letter from D. G. Kerr to Mr. Gayley,
dated December 26, 1905, stating that the Mahoning Ore & Steel Co.
had decided to build 2 new steamers of about 12,000 tons capacity
to cost about $450,000 each, one-half of the cost to be paid by 10-
year 5 per cent bonds, the other half by an issue of stock; that the
Carnegie Steel Co. owns 20 per cent of the stock and would be
entitled to 900 shares or $90,000 par value of the new issue, and that
Mr. Kerr strongly recommends tnat the Carnegie Steel Co. take its
proportion of the issue. On motion the recommendation of Mr. Kerr
was approved and adopted.
December 29.
(P. 499.) On motion duly seconded the following resolutions were
unanimously adopted: Resolved, that the general plans presented
for improvements to the lands recently purchased in Lake County,
Ind., including blast furnaces, open-hearth furnaces, rails, slabbing,
plate, bar, structural and bloommg mills, axle plant, machine shop,
foundry, offices, docks, tracks, coke ovens, and necessary appur-
tenances be approved and adopted; provided, that the cooperation
of the public officials in Indiana and Representatives in Congress be
securea as promised.
January 9, 1906.
(P. 502.) The chairman of the board reported progress in relation
to the property selected for an Indiana plant, and among other
things stated that under the law of Indiana, as it now stood, it was
doubtful whether adjacent proprietors on the lake front had the
right to fill in the lake to deep water and own the land, but that he
believed necessary legislation on the subject could be hereafter
secured when the legislature convened; that it would probably be
necessary to provide dwellings for employees at the proposed new
Elant in some way; also that forms for the purpose or carrying the
nancial plan heretofore considered into effect were being prepared
and would probably be submitted at the next meeting.
■UNITED STATES STEEL OORPOEATIOH'. 3905
Upon motion, duly seconded, it was voted that the subject matter
of providing dwelhngs at the point named be referred to the chair-
man of the board to consider and formulate a plan and report recom-
mendations at subsequent meeting.
January 15, 1906.
(P. 504.) The president stated that he had been in conference
with a number of practical steel men concerning the proposed ex-
penditures at the Indiana plant, and as a result recommended that
work be promptly commenced to buUd and complete 4 blast furnaces,
24 open-hearth furnaces, 1 blooming mill, 4 bar mills, 1 rail mill, and
the accessories, including docks, etc. On motion, duly seconded,
it was voted that plans for the work above suggested be promptly
prepared and submitted to the special coronuttee of the finance
committee, heretofore appointed, for consideration and report to
this committee.
The chairman of the board reported that he was still in conference
with officials of the State of Indiana concerning necessary legislation
which should secure rights of possession and ownership to the shore
owner of property on the lake front; also that a special committee
had carefuUy considered the subject matter of providing dwellings
at the proposed new plant for employees, and it was the unanimous
conclusion and recommendation that the necessary site should be
in control of our interests and that dwellings should be provided
pursuant to a general plan which was briefiy outlined by the chair-
man of the board.
On motion, duly seconded, it was unanimously voted that the
general plan should be approved, and that the question of securing
additional land, if necessary, be referred to the chairman of the
board, -with full power; also that the selection of an agent or employe
to have the management of the business connected with the land
and dwellings above referred to be postponed for further examination.
The chairman of the board further reported that he was in con-
ference with the railway officials concerning the removal and re-
location of certain railroad tracks and also with reference to the
question of rates from coal district to the Indiana plant.
After some discussion it was stated as the unanimous opinion
of the committee that there should be regular meetings of the special
committee appointed to consider the question of expenditures at the
proposed Indiana plant.
January 23, 1906.
(P. 508.) The chairman of the board reported progress in relation
to the proposed Indiana plant, and referred to correspondence with
the governor of Indiana; also appointments with railroad officials
concerning the removal and location of certain tracks; also that
options on some additional land had been obtained, and also that
drafts of mortgages for bond issues pursuant to the general financial
plan were being prepared and would probably be submitted at the
next meeting.
February 19, 1907.
(P. 643.) Adopted report recommending the dismanthng of the
Star Mill property of the American Sheet & Tin Plate Co., Pittsburgh.
By-laws of the United States Steel Corporation, March 1, 1910
(p. 127 of book and p. 14 of by-laws).
3906 UNITED STATES STEEL CORPORATION.
Page 14 of by-laws, March ], 1910:
No contract or other transaction between this company and any other corporation
shall be affected by the tact that the directors of this company are interested in, or are
directors or officers of such other corporations, if, at the meeting of the board, or of the
committee of this company, making, authorizing, or confirming such other contract
or transaction there shall be present a quorum of directors not so interested; and any
director, individually, may be a party to, or may be interested in any contract or
transaction of this company, providing that such contract or transaction shall be
approved or ratified by the affirmative vote of at least 10 directors not so interested.
^ Meeting of directors March 1, 1910, John D. Rockefeller, jr., resig-
nation as a director was submitted and the committee recommended
the election of Henry Walters to fill such vacancy. Resolution
agreed to.
THE HILL ORE LAND DEAL.
United States Steel Corporation board of directors' minutes (p. 393),
March 12, 1907. Printed copy of lease and agreement.
Copy of the proxy of the sixth annual meeting of the stockholders
of the United States Steel Corporation, April 15, 1908 (p. 392).
Directors' meeting.
THE BOND CONVERSION SCHEME.
Meeting of directors, September 22, 1902 (p. 117). J. P. Morgan,
Steele, Thayer, Gary, Perkins, Edenborn, Rogers, Reid, Griscom
have names signed to letter of September 19, calling special meeting
for September 22, and there were present at that meeting the follow-
ing: F. H. Peabody, Steele, Moore, Ream, Widener, Frick, Edun-
born, Gary, Perkins, Converse, Reid, Thayer, Hewitt, and Griscom.
General counsel stated his belief was that the court would support
the right of the corporation to issue bonds for the conversion of the
preferred stock and for cash as authorized by the stockholders at thrir
meeting held May 19, 1902.
Also see contract of April 1, 1902, with J. P. Morgan Co.
Article 3 of the agreement of the United States Steel Coi'poration
with J. P. Morgan & Co.:
As compensation for the risk and for the guarantee mentioned in article 1, section 4,
and for the several obligations by them assumed, or to be assumed under the foregoing
two articles, severally and respectively, and for the performance of this agreement
to such extent as the same shall by them be performed, the bankers shall receive and
retain, the steel company will pay and will allow to the bankers a cash compensation
equal to a commission of 4 per cent upon the aggregate amount at par of all such bonds
as under the provision of article 1 of this agreement shall be sold and delivered under
any offer or offers by them made to preferred stockholders or shall be sold and deliv-
ered to the bankers and their associates.
(P. 722.) On October 1, 1907, the finance committee of the United
States Steel Corporation voted to advance to the Westinghouse
^Machine Co. §200,000 on account of contract.
(P. 718.) On September 17 they loaned to the AlHs-Chalmcrs
Co. S200,000, secured by two and a haK times that amount of accounts
receivable and Allis-Ch aimers bonds.
(P. 711.) August 27, 1907, they arranged to purchase the entire
ownership of the Hostetter-Connellsville Coke Co.
(P. 712.) Were considering Duluth- Virginia & Rainy Lake Rail-
road, and heard reports of a special committee to purchase all or a
controlling interest in the Schoen Steel "Wheel Co.
UNITED STATES STEEL COEPOEATION. 3907
(P. 733.) Meeting financial committee United States Steel Cor-
poration, October 29, 1907. Kecommended that Frank B. Kellogg
be paid $15,000 as extra compensation for legal ser-nces during the
year 1907.
November 1, 1907.
(P. 735.) After discussion of the financial situation and the
scarcity of currency to meet pay rolls throughout the organization,
it was
Resolved, To recommend to the subsidiary companies to meet pay rolls by payment
of 80-cent checks, 20 per cent currency if necessary.
Note. — Gary swore at this time the corporation had $75,000,000 cash in banks all
over the country, 3-132.
NoTEMBEE 2, 1907 — 11 a. m.
(P. 736.) Present: Gary, chairman; Baker, Frick, Perkins, Keam,
and J. P. Morgan, by request. The purchase of the Tennessee Coal,
Iron & Railroad Co. was discussed. No action.
November 2, 1907 — 9 p. m.
Same.
Sunday, November 3 — 11 a. m.
(P. 737.) Same action.
Sunday, November 3 — 9 p. m.
Resolved, To recommend purchase of the Tennessee Coal, Iron & Railroad property,
and that the whole matter be referred to the chairman, with power.
November 4 — 6 p. m.
(P. 738.) Present: Gary, Baker, Frick, Perkins, Ream, and J. P.
Morgan, by request.
Resolved, To recommend to the board the purchase of the property of the Tennessee
Coal, Iron & Railroad property, on terms now suggested, differing somewhat from
those suggested at the meeting at 9 p. m., November 3, and that the whole matter be
referred to the chairman, with power.
November 5 — 9 p. m.
(P. 739.) Further discussion of terms. Subject matter was again
referred to the chairman, with power.
October 23, 1907.
(P. 732.) Voted to exchange $1,200,000 bonds for $2,000,000 Ten-
nessee Coal & Iron stock.
James M. Swank.
September 29, 1908.
(P. 837.) Present: Gary (in the chair), Corey, Perkins, Ream,
Rogers, and Widener. The chairman read a letter from James M.
Swank, of the American Iron & Steel Association, acknowledging
receipt of the corporation's contribution of $7,000, and requesting
an additional subscription of $2,000, and on motion the addition^
subscription was recommended.
September 28, 1909.
(P. 950.) The chairman presented a letter from Mr. James M.
Swank, general manager of the American Iron & Steel Association,
in regard to the annual subscription to the association, and on motion
and by the affirmative vote of aU present, the subscription of $9,000,
being the same as last year, was recommended.
3908 united states steel coepoeatiok.
January 17, 1911.
(P. 1111.) Contribution of $4,000 toward expense of $9,000 for
second edition entitled "Protection and prosperity," written by
George B. Curtiss, of Binghamton, N. Y. Done on letter of request
from James M. Swank.
acquisition of coal lands.
January 5, 1909.
(P. 864.) Present: Gary (in the chair), Baker, Corey, Frick, Keam,
Rogers, and Widener. 'The chairman submitted a report from A,
Cummins, coal expert, concerning Illinois coal land, and containing
a recommendation to purchase a certain named 3,050-acre tract
with other land adjoining. On motion, duly seconded, it was unani-
mously voted that Mr. Cummins be authorized to purchase the
3,050 acres at not to exceed $100 per acre; and also additional lands
if a similar character which might be secured in the same location
at the same price or better, the purchases to be made under the
general direction of the' chairman and president.
February 23, 1909.
(P. 880.) Also see purchase of 4,000 acres at $50 per acre, recom-
mended.
November 16, 1909.
(P. 885.) Shows another purchase by A. Cummins of 421 acres
of coal land in the Clinton, 111., field at $55 per acre.
coal lands.
February 2, 1909.
(P. 872.) Present: Gary (in the chair). Baker, Corey, Frick, Per-
kins, Ream, Rogers, and Widener. It was
Resolved, That the president of each of the subsidiary companies be recommended to
advise the Dering Coal Co. that if it shall refuse to deliver the coal to any of the several
subsidiary companies when and as agreed in its present contract, then the subsidiary
company will procure its requirements for coal elsewhere at the best prices and on the
best terms possible and hold the Dering Coal Co. responsible for any and all loss in-
curred; that such action be taken after consultation with general counsel Stetson as to
the legal rights of the subsidiary companies.
(Dering Coal Co.'s letter, dated Feb. 1, stated that it would not
continue to deliver coal under the existing contract after Feb. 6,
1909.)
April 2, 1909.
(P. 892.) Special meeting of the finance committee, Gary, Corey,
and Ream. The president presented a letter from K. K. Knapp to
Mr. Frances Lynde Stetson, general counsel, dated March 30, 1909,
relating to the claim of certam banks in Chicago, aU growing out of
the assignment to them of the Dering Coal Co., and also a draft of
proposed letter from Mr. Stetson to Mr. Knapp, dated April 1, and a
letter of the same date from Mr. Stetson to the president.
April 20, 1909.
(P. 897.) Thepresident submitted a letter addressed to Mr. Stetson
by Mr. K. K. Kjiapp, counsel for the Illinois Steel Co., under date
April 13, in regard to Dering Coal Co. matter.
united states steel coepobation. 3909
coal lands.
March 30, 1909.
(P. 891.) Shows coal contract closed with operator on the Chicago
& Eastern Illinois Kailroad Co. amounted to 3,400 tons per day.
April 27, 1909.
(P. 900.) Gary in the chair. The chairman called attention to
the fact that there could properly be issued about $9,000,000 of bonds
by the Chicago, Lake Shore & Eastern Railway Co. for properties
purchased, and stated that it was the opinion of the legal department
that it would be advisable for the Elgin, Johet & Eastern Railroad Co.
to lease and operate the Chicago, Lake Shore & Eastern Railway on
some proper and fair basis. On motion the whole subject matter
was referred to the chairman with power. Also the chairman read a
cablegram from J. P. Morgan in regard to the wage question, and on
motion the whole subject matter was laid on the table.
Mat 4, 1909.
(P. 903.) The president presented a letter addressed to him by
Mr. Dickson in regard to the employment of convict labor by the
Tennessee Coal, L-on & Railroad Co., and upon motion action was
postponed and the president was requested to obtain a letter from
President Crawford fully explaining the situation and making such
recommendation as he saw fit.
May 4, 1909.
(P. 904.) Mr. Hammond also made two coal propositions: (First)
to sell 5,500 acres of coal adjoining the 3,500-acre tract we now own
in the Westville district for $110 per acre; (second) to sell us the
KeUy and Nimrod tracts, aggregating 9,800 acres, at $175 an acre,
including improvements.
On motion, duly seconded, the subject matter was referred to the
chairman and president with power.
May 23, 1911.
(P. 1162.) Special report by President Lynch, of H. C. Frick
Coal & Coke Co., regarding the purchase of 16,076 acres of coal.
Referred to the chairman and president with power to act.
May 25, 1909.
(P. 912.) Shows election of Mr. J. P. Morgan, jr., as a member of
the board of directors and of the finance committee to fill the vacancy
caused by the death of Henry H. Rogers.
June 22, 1909.
(P. 919.) The following resolution was unanimously adopted:
Whereas the officers of the corporation in pursuance of authority duly given by the
finance gommittee heretofore agreed to purchase from the Chicago, Lake Shore &
Eastern Railway Co. first-mortgage bonds of the said cfompany to the amount of $9,-
000,000, par value, said bonds to be guaranteed by the Elgin, Joliet & Eastern Railway
Co.; and under like authority agreed to sell the same to Messrs. William A. Read & Co.
with the unconditional guaranty of the United States Steel Corporation thereon,
Resolved, That the proper officers of this corporation be and hereby they are severally
authorized and directed to execute in the name and on behalf of the Uriited States
Steel Corporation upon the first-mortgage bonds of the Chicago, Lake Shore & Eastern
Railway Co. to an amount not exceedmg the aggregate principal sum of $9,000,000,
the guaranty in the form hereto annexed, and to affix to every such guaranty the cor-
porate seal of the United States Steel Corporation duly attested by their signatures.
3910 united states steel coepoeation.
August 24, 1909.
(P. 939.) Morgan in the chair. A letter signed by D. G. Kerr,
Thos. Lynch, A. Cummins, and K. K. Knapp addressed to President
Corey, under date of August 24, 1909, was read recommending the
gurchase of the so-called Kelly Coal Co. property in Westville and
reorgetown Townships, Vermilion County, 111., aggregating 9,350
acres of sohd or unmined coal for $1,500,000 and $5,000 to obtain
necessary mining rights and about $62,500 to put various shafts in
good shape. On motion, the purchase of the property was recom-
mended provided good title could be obtained.
April 11, 1911.
Another purchase of coal lands in Brook County.
November 16, 1909.
(P. 969.) Expenditure of $3,000,000 at Buffington on new cement
plant, capacity 4,000,000 barrels per year.
November 23, 1909.
(P. 971.) Contribution of $50,000 by Pittsburgh Steamship Co.
to the Sailors' Institute to be located in the city of Cleveland, was
recommended.
November 30, 1909.
(P. 974.) Hughitt and Edenborn resigned and Samuel Mather and
Percival Roberts filled the vacancies. (Mr. Mather is also a big
stockholder and interested ia Lackawanna.)
December 7, 1909.
(P. 976.) The president is requested to submit a report at the last
meeting in each month of the new plants proposed or under construc-
tion by our competitors.
December 7, 1909.
(P. 976.) The president submitted letter addressed to Mr. Perkins
by J. V. Thompson, of date September 24, 1909, offering for sale
40,000 acres of coking coal land in Cumberland, Jefferson, Whitely,^
Greene, Monongahela, and Dunkard Townships (Greene County, Pa.),
with full report from Mr. Lynch addressed to Mr. Kerr, November
29, 1909, and upon motion Mr. Thompson's proposition was laid on
the table.
Upon motion the question of purchase of the River Coal Co. was
referred to the chairman for investigation.
December 14, 1909.
(P. 979.) Question of recommending the expenditure of the OUver
Mining Co. of $8,468,193.75 for stripping, etc., in 1910, was referred
to the special committee.
December 21, 1909.
(P. 983.) Freight bills due Duluth, Missabe & Northern Railway Co.
by Shenango Furnace Co., payable October, November, and December,
1909, recommended to be carried over until February, March, and
AprU, 1,910, and the Shenango Furnace Co. to pay interest at rate
of 5 per cent per annum.
Same meeting. The president read a letter, dated December 17,
addressed to Jlr. Kerr b}" J. S. Keefe, in regard to iron ore rates on
the proposed Cin'ana Railroad in Minnesota.
united states steel cokpoeation. 3911
December 28, 1909.
(P. 986.) The president read a letter to Mr. Kerr from President
McGonagle, of Duluth, Missabe & Northern Kailway, Co. dated
December 22, in regard to ore shipments from the Cuyajia range.
(P. 987.) Upon motion the question of recommending the Ohver
Iron ]\Iining Co. to take options on the Michigan Iron & Land Co.'s
lands, located in Michigan, consisting of 400,000 acres, as recom-
mended in the letter of Mr. Kerr to the president, dated December
14,, and accompanying correspondence and recommendations, was
referred to a special committee composed of the ex officio members
and Messrs. Frick and Perkins.
January 4, 1910.
(P. 988.) The chairman and president made statements to the
committee concerning the discharge of Superintendent Greenway,
of the Oliver Mining Co., by its president during the month of Decem-
ber, 1909, and of the matters leading up to and following same.
(This might be important to find Mr. Greenway for testimony on
matters at the range (see p. 988.) This man was reinstated by Mr.
Gary over Corey's objection.
January 5, 1910.
(P. 991.) Chairman presented a letter dated December 28, 1909,
from A. Dempster, chairman Monongahela River Consolidated Coal
& Coke Co., offering to sell the River Coal Co. for $32,431,140.
On motion question of investigation of the purchase of the River
Coal Co. and the proposition of the Pittsburgh Coal Co. was referred
to the special committee, composed of the chairman and Messrs.
Frick and Perkins, with power.
January 11, 1910.
(P. 993.) The chairman to whom, on October 15, 1907, was referred
with power the question of arranging the transfer of the Clairton
Steel Co.'s property and the H. C. Frick Coke Co., stated that the
price had been agreed upon, and submitted blanlcs calling for an ex-
penditure of $2,284,448.03, viz.: For 2,644 acres of coal at $850,
$2,247,496.90; 295 acres of surface at $125; $36,951.13, was recom-
mended by him and adopted.
Expenditure by Duluth & Mesabi Northern Railway of $755,700 for
hull-rust short line from Great Northern Crossing to Alborn Branch.
18.45 miles, or 36.90 miles of track.
January 25, 1910.
(P. 998.) The gas franchise in Totleston and the incorporation
recently into Gary, Ind., was explained in a letter presented by
President Buffington, of the Gary Land Co., under date January 19,
1910.
Letter under date January 18 of President Corey was submitted,
fully explaining the conditions of the H. C. Frick Coke Co.'s lease of
the Baggaley property from the Puritan Coke Co., and upon motion
the purchase of the property by the H. C. Frick Coke Co. on the terms
suggested in Mr. Lynch's letter, viz., a payment of $365,500 in three
annual payments, with 5 per cent interest, and the assumption of the
mortgage indebtedness of $270,000 for better terms if they can be
obtained be recommended.
3912 UNITED STATES STEEL CORPORATION.
(P. 999.) Sale hj the Gary Land Co. of 20 acres of land at $3,000
an acre to Pittsburgh Screw & Bolt Co. (Note that this same land
or land in Gary had been purchased for $800 by the corporation not
long ago.)
(P. 1000.) Same meeting, president made a detailed report of new-
plant proposed or under construction by our competitors.
February 1, 1910.
(P. 1002.) On motion the question of purchase from the United
Process Co. (Ltd.) of London, of the exclusive right in the United
States to use the Kichardson process of manufacturing armor plates
for 1250,000 and royalty of $30 per ton of 2,000 pounds in accordance
with letter from George Keppel, vice chairman, to President Corey,
was referred to the chairman and president.
February 8, 1910.
(P. 1004.) President presented letter from President Cra\\'ford of
the Tennessee Coal & Iron Railroad Co., with power to obtain option.
February 8, 1910.
(P. 1004.) President Crawford, Tennessee Coal & Iron Co., under
date February 2, 1910, stated that as a result of diamond-drill works,
that probably a large tonnage of ore exists under Shades Mountain,
and suggested that a 90-day option on about 8,000 acres at about $25
an acre be obtained in order that further exploration might be made.
(P. 1005.) The president presented a letter from J. G. Butler, jr., in
regard to purchase of pig iron, and, on motion and by the affirmative
vote, the president was authorized to purchase 40,000 tons at $18
valley for delivery in March, April, May, and June.
February 24, 1911.
(P. 1008.) The chairman presented a letter from President Banks,
of the Elgin, Johet & Eastern Railroad Co., under date of February 12,
suggesting that the corporation acquire the Chicago, Cincinnati &
Louisville Railroad, now in hands of receiver, and by affirmative vote
of all the question was laid on the table.
Purchase by Oliver Mining Co. from W. D. Conner, of 19,654 acres
of timberland in Minnesota located in townships 57, 58, and 59 north,
ranges 7, 8, 9, and 10 west, at $300,000 was recommended.
The president presented a letter addressed to Mr. Kerr by W. J.
Alcott, John H. McLean, and John Uno Sebenius, dated February 12,
explaining an offer of the Rogers Brown Ore Co. to assign its lease of
the south 100 acres of the northeast quarter of section 30, 46-28
Cuiuna Range, the acceptance of which they could not recommend.
February 24, 1911.
(P. 1009.) Question of purchase by subsidiary companies of 2,500
to 5,000 tons of pig iron was referred to the president with power.
March 1, 1910.
(P. 1010.) The president submitted a form of proposed contract
between the American Steel & Wire Co. and the Monongahela River
Coal & Coke Co. providing for the furnishing by the wire company of
UNITED STATES STEEL COEPOEATION. 3913
not less than 10 steel barges, and the transportation bj the coal
company of products of subsidiary companies of the United States
Steel Corporation under terms and conditions. Upon motion, the
question of recommending the execution of the contract was referred
to the chair and president with power.
The president presented a letter from Col. Albert J. Logan,
of the armory board of the State of Peimsylvania asking for a
contribution to the armory building for Eighteenth Regiment
of Infantry, National Guard of Pennsylvania, stationed in Pitts-
burgh. Upon the motion the question of recommending an
appropriation not to exceed $25,000 was referred to the chairman
and president with power.
March 8, 1910.
(P. 1014.) Special committee reported that it had recommended
the donation of $10,000 to the Eighteenth Eegiment National
Guard of Pennsylvania.
Note sale of five small abandoned plants of American Bridge Co.
at Decatur, AJa., Buffalo, N. Y., La Fayette, Ind., Horseheads, N. Y.,
and Toledo, Ohio.
Chairman for the special committee on the matter of proposed
contract between American Steel & Wire Co. and the Monongahela
Coal & Coke Co. reported that it had recommended the execution of
the contract; and, on motion, the report was approved and adopted.
March 22, 1910.
(P. 1018.) On motion, by the affirmative vote of all present, the
question of recommendation of a purchase by the A. S. & Q. Co. of
the Anthony Fence Co., of Tecumseh, Mich., in accordance with letter
from President Palmer to President Corey under date of March 17
and accompanying correspondence was postponed for future con-
sideration.
March 29, 1910.
(P. 1020.) The purchase by that company was again taken up
and referred to chairman and president, with power.
April 5, 1910.
(P. 1022.) The president made a report on the pig-iron situation,
both Bessemer and basic, and schedule of stock on hand throughout
the country and amounts unsold as of July 1, 1910, showing that
they were keeping in close touch with the amount of stocks and this
class of raw material at all times, and are therefore in a position to
know what steps to take with reference to making prices or purchas-
ing, as the case may be.
May 3, 1910.
(P. 1034.) The chairman presented an opinion, signed by Attorneys
McVeagh, Kellogg, Reed, Severance, and Knapp, relating to terminal
allowances, etc. On motion, it was recommended that local officials
be requested to take up for consideration and dispose of the questions
involved in accordance with the opinion recommended, and that the
chairman be requested to write the local officials explaining the views
of the committee.
3914 united states steel coepoeation.
Mat 17, 1910.
(P 1038:)
Whereas the United States Trust Co. of New York, as trustee, has agreed from the
Uiiited States Steel Corporation $2,646.00 of the 50-year 5 per cent gold bonds of the
United States Steel Corporation, issued under the indenture dated April 1, 1901, and
registered in the name of "E. H. Gary and Richard Trimble as joint tenants and not
as tenants in common, with the right of survivorship"; and
Whereas the United States Steel Corporation has agreed to sell the said bonds to
the United States Trust Co. of New York, as trustee: Therefore be it
Resolved, That E. H. Gary and Richard Trimble be, and hereby they are, author-
ized and directed to transfer and deliver to the United States Trust Co. of New York,
as trustee, the following 50-year 5 per cent gold bonds of the United States Steel Cor-
poration, aggregating $2,646.00, par value, issued under the indenture dated April 1,
1901, and to execute any and il papers necessary to carry out and complete such
transfer.
March 22, 1910.
(P. 1042.) On motion, and by the affirmative vote of all present, the
question of investigating and recommending a contract for license
to manufacture armor plates under Wales patents was referred to a
special committee composed of the chairman and Mr. J. P. Morgan, jr.
Mat 31, 1910.
(P. 1044:) Special committee on the manufacture of armor plate
under the Wales patents referred that they had advised President
Dinkey to close a contract at 90 shillings per ton, of which 10 shillings
to be paid the Harvey United Steel Co. and the payment of 20 .per
cent of the remainder as compensation to Hunsicker & Fox, and also
the continuation of negotiations with Schneider and Kropp, as stated
in the correspondence on file.
(P. 1045.) On motion, report was adopted.
(P. 1066.) On motion, and by affirmative vote of all present, the
question of recommending a colonization plan for lands of Duluth
& Iron Range Railroads Co. in accordance with letter of President
House to Mr. Kerr, under date of July , 1910, and letter of Mr.
Kerr to President Corey, under date of August 11, 1910, was referred
to a special committee composed of ex officio members and Messrs.
Ream and Baker. (It might be interesting reading matter, indicat-
ing some land grab.)
September 20, 1910.
(P. 1077.) On motion, and by the affirmative vote of aU present,
the question of recommending the purchase by the Oliver Mining Co.
of the fee to Thomas Wafier's one-half interest in the so-called
Walker lands now under lease to the Ohver Mining Co. was referred
to the special committee consisting of the ex officio members and
Messrs. Perkings and Ream, with power.
September 27, 1910.
(P. 1079.) E. M. Alien, vice president and general manager of the
American Refractories Co., letter to President Corey under date of
September 23, 1910, explaining the condition of the American Refrac-
tories Co., and requesting a loan of $250,000 under certain stated
conditions. The whole subject was referred to the chairman and
president, with power.
On motion and by affirmative vote of all present, the proposed
expenditures at Gary, Ind., by the Gary Land Co., referred to in
UNITED STATES STEEL CORPORATION. 8915
the minutes of August 2, 1910, namely, $935,000 for the construc-
tion of 294 dwellings and 161 buildings for the employees of the
American Bridge Co., and $578,927 for the construction of 200
dwelling houses for the employees of the American Sheet & Tin Plate
Co., were recommended, and the details referred to the chairman,
with power. (This is interesting to note what the cost of one of
the dwellings is, and it will be an easy matter to find out their sell-
ing price to the employees, thus showing up the profits made in
that manner.)
November 1, 1910.
(P. 1085.) Colonization plan for Duluth & Iron Range Railroad
Co. was not approved.
November 7, 1910.
(P. 1087.) Chairman for the special committee on Walker ore
lands reported that the committee recommends an offer of $2,000,000
as the maximum amount for the property in question. On motion,
report was approved and adopted.
November 15, 1910.
(P. 1089.) President presented a letter from President Farrell, of
the Utiited States Steel Products Co. under date of November 3,
1910, in regard to ocean freights. Upon motion and by an affirma-
tive vote, the purchase of the steamship Bantu for $25,000 pounds
sterling was recommended.
November 22, 1910.
(P. 1092.) The president presented a letter from Mr. Kerr, Novem-
ber 17, with regard to iron ore and ore properties at Bethlehem iron
mines, with the recommendation not to talie over these properties.
December 6, 1910.
(P. 1097.) The president presented a letter addressed to him by
Archbishop Ireland, under date of November 29, asking for a con-
tribution to the College of St. Thomas, St. Paul, Minn. On motion
and by affirmed vote, the donation of $50,000 was authorized.
December 13, 1910.
(P. 1098.) Mr.j Walker finally accepted an offer of $2,000,000,
as I'ccommended November 7, 1910, one-third cash, one third in four
months, and one-third in eight months, with interest at 4 per cent.
Report was approved and adopted.
December 20, 1910.
(P. 1101.) Committee made further purchase of another Walker
tract, being an undivided one-half interest, containing 1,140,000
tons of ore, as shown in maps, explorations, and drillings submitted,
for the price of 10 cents per ton.
January 17, 1911.
(P. 1111.) Contribution of $4,000 toward the $9,000 required to
pay expenses of a second edition of a book entitled "Protection and
Prosperity," written by Hon. Geo. B. Curtis, Binghamton, N. Y.,
urged to buy by Jas. M. Swank in letter of January 12. On motion
and afl&rmative vote of all present, the question was referred to the
chairman with power.
31572— No. 53, pt. 2—12 12
3916 united states steel coepoeation.
Februaby 28, 1911.
(P. 1126.) Pittsburgh Steamship Co. purchased three boats from
the Weston Transit Co. for $840,000.
March 22, 1911.
The chairman presented at length a proposition of the Pittsburgh
Coal Co. to sell some of its steam and coking lands, together with
an explanatory letter from Mr. Lynch. After full discussion, action
on the question was postponed until the next regular meeting of the
committee.
March 28, 1911.
(P. 1138.) Purchase of coal lands of the Pittsburgh Coal Co. was
referred to a special committee, composed of the chairman and
Messrs. Frick, Morgan, and Roberts, with power. The president
explained at length the necessity for warehouses at San Francisco,
Cleveland, and Baltimore, to facilitate the distribution of products
of the subsidiary companies, and stated that after a great deal of
investigation by all the presidents, supplemented by a committee
of four, from the Carnegie Steel Co., Illinois Steel Co., American
Bridge Co., and American Steel & Wire Co., he was satisfied that the
property of the Risdon Iron Works, at San Francisco, with the deep-
water tonnage of 1,550 feet (747 feet of wharf in place), approxi-
mately 22 acres of land, with about 4^ acres of building thereon,
and good rail connections with the S. P. and St. F. roads, was the
most desirable site obtainable in San Francisco. He further stated
that the owners had asked $1,600,000 for the property, but that after
negotions an option had been obtained for $1,250,000. On motion
and by the affirmative vote of all present, the purchase of the above
property at $1,250,000 was recommended.
April 4, 1911.
(P. 1140.) Letter from President Palmer, of the American Steel &
Wire Co., stating that 60 instead of 50 nail machines could be bought
for $24,000, or $400 for one machine.
April 4, 1911.
(P. 1141.) The president for the special committee on the question
of purchase of sites, erection of warehouses, or the acquisition of
suitable property at Cleveland and Baltimore, reported that the
company recommended the expenditure by the Car Steel Co. of
$560,000, at Cleveland, Ohio, as follows:
The purchase of the Baaeet-Pressley warehouse and adjommg vacant
property : $164,000.00
The purchase of the stock of the company contamed in above warehouse. 200, 000. 00
The Duildmg and equipment of a structural warehouse 95, 000. 00
The acquisition of additional property adjoining the Basset-Pressley
property 100,000.00
$560,000.00
On motion, and by the affirmative vote of all present, the foregoing
report was approved and adopted.
Aprh. 11, 1911.
(P. 1142.) The president read a statement concerning the trade
conditions, increased ingot capacity of the country, and conclusions
therefrom.
united states steel ooepobation. 3917
May 23, 1911.
(P. 1162.) On motion, duly seconded, the subject matter of making
purchase of about 16,076 acres of coal, referred to in a special report
made by President Lunch, was referred to the chairman and presi-
dent with power. (Last meeting in book No. 1.)
May 3, 1911.
At a meeting of the finance committee of the United States Steel
Corporation the secretary submitted a proposed report of the
finance committee stuce the regular monthly report. Such report
was approved and ordered on file.
May 23, 1911.
Special report made by President Lynch, of the H. C. Frick Coal &
Coke Co., regarding the purchase of 16,076 acres of coal. Referred
to the chairman and president with power to act.
May 23, 1911.
(P. 1162.) Question of making adjustments in regard to prices of
certaia steelproducts. Having been considered, it was on motion —
Resolved, That the subject matter be referred to the chairman and
president with power.
May 9, 1911.
(P. 1158.) Interest received on bank balances for the quarter
ending March 31, 1911, $333,124.20.
May 2, 1911.
(P. 1154.) Lease of the Snyder limestone property.
April 25, 1911.
Report of finance committee on April 25, 1911. Should be sub-
poenaed.
William B. Dickson resigned as vice president on April 25, 1911.
Balance sheet of profit and loss account presented on same date,
with the statement dated April 24, signed by the comptroller.
April 18, 191h
Purchase of the tract of coal land considered at Brooke County,
W. Va.
Recommended to elect Gardner N. Lane director in place of
Nathaniel Thayer, deceased.
April 11, 1911.
Another purchase of coal lands, April 11, in Brook County.
President read a statement concerning trade conditions, ingot
capacity of the country, and conclusions therefrom.
April 4, 1911.
Purchase of the Basset-Pressley warehouse, with stock, Cleveland,
Ohio, $560,000.
Purchase of the coal lands from the Pittsburg Coal Co.
March 22, 1911.
Chairman presented at length proposition from the Pittsburg
Coal Co., with an explanatory letter from Mr. Lynch, president ot
the H. C. Frick Coal & Coke Co.
3918 united states steel cokpoeation.
Maech 20, 1911.
r Consideration of tiie necessity for warehouses at San Francisco,
Cleveland, Philadelphia, for the distribution of the products of the
subsidiary companies.
March 16, 1911.
Treasurer's report on investments and cash, sinking and distribu-
tion funds, and cash thereon.
February 28, 1911.
Purchase of three boats of the Weston Transit Co.
February 14, 1911.
Interest received on bank balance for quarter ending on December
31, 1911, S375,803.
January 31, 1911.
Resolution recommending the acceptance of resignation of Mr.
Morrison, and thereupon the election of J. D. Farley as member of
the board of directors to succeed Morrison.
December 13, 1910.
(P. 1019.) Lorain & West Virginia Railway.
December 6, 1910.
(P. 1096.) It was resolved that for the year 1911 the officers and
employees of the Steel Corporation be permitted to subscribe for
25,000 shares of preferred stock at the pnce of $114 per share, or at
the option of each subscription for the equivalent value of common
stock at $70 per share.
September 27, 1910.
Finance committee. American Refractories Co.
September 13, 1910.
President's report of operation of plants and foreign sales.
August 16, 1910.
(Page 1066.) Colonization plan Duluth & Iron Range Road.
August 2, 1910.
(P. 1062.) Request contribution toward "Possibihties of Pitts-
burgh" number of Pittsburg Post, after full discussion was laid on
table.
February 28, 1911.
Finance committee recommended Percival Roberts, jr., elected
finance committee.
(P. 365.) Purchase of stock about 1904.
(P. 350.) International agreement as to prices of rails.
March 21, 1911.
(P. 1134.) Question of aiding National Erectors' Association was
referred to the chairman and president.
(P. 369.) Arrangement with Pennsylvania Railroad Co.
united states steel coepoeation. 3919
Makch 22, 1911.
(P. 1137.) Proposal from Pittsburg Coal Co., with explanation
letter from Mr. I^nch, March 28, 1911, referred to special committee
(Frick, Roberts, Morgan) with power.
Maeoh 28, 1911.
(P. 1138.) Purchase of Risdon Iron Works, San Francisco, was
recommended, $1,250,000, as place for distribution.
April 11, 1911
ming tra
increased ingot capacity of tfi.e country.
(P. 1142.) President's report concerning trade conditions and
" ihe
April 14, 1911.
(P. 1144.) Recommended outgoing directors requested Gardner
M. Lane, of Boston, be elected in place of Thayer,
April 1, 1905.
Coal contract, Pittsburgh Coal Co.
April 25, 1911.
(P. 1148.) Election of John Reis rice president in place of W. B.
Dickson, resigned.
Report of president regarding building projects at Birmingham,
Ala., recommendation of president adopted.
July 25, 1905.
(P. 448.) Whitney coal deal.
May 5, 1911.
(P. 1156.) Stephens mine lease, purchase of divided 50 annual
payments.
December, 1905.
Purchased the tin-plate machinery of Colorado Fuel & Iron Co.
May 23, 1911,
Adjustment of prices of certain steel products referred to president
with power.
Purchase of Pittsburg Coal Co. lands.
SEVENTY-SECOND MEETING OF DIRECTORS OF UNITED STATES STEEL
CORPORATION.
New York, June 26, 1906.
The seventy-second meeting of the board of directors of the United
States Steel Corporation was duly held at No. 71 Broadway, in the
city of New York, on Tuesday, the 26th day of June, 1906.
The roll being called, the following directors answered to their
names :
E. H. Gary, Henry C. Frick, Henry H. Rogers, Thomas Morrison,
George W. Perkins, Edmund C. Converse, James Gayley, Marvin
Hughitt, John D. Rockefeller, jr., WiUiam E. Corey, George F.
Baker, Nathaniel Thayer, and Clement A. Griscom.
The chairman of the board, Mr. E. H. Gary, occupied the chair.
*******
3920 UNITED STATES STEEL COBPOKATION.
Also, the finance committee of our corporation appointed a special
committee to investigate and ascertain what connection, if any, the
oflBicers of this corporation have with outside companies with whom
we might expect to do business or with whom we had been or were
doing business. These officers are making full, written reports to
the special committee concerning these matters. The finance com-
mittee also appointed a special committee to make inquiry in refer-
ence to the mterests of the members of the committee m outside
companies, the idea being, as I said, to have an open, clear under-
standing, so that there shall be no right on the part of any outside
influence to criticize the action of the company.
You also, perhaps, saw a statement in the newspapers this morning
that the Government was making investigations of the United States
Steel Corporation, and that Mr. Smith, one of the deputies in the
conmiissioner's department, had testified before the committee to
that effect. I have no doubt the deputy did make the statements
which were published. At the last session of Congress a resolution
was passed by both Houses asking the commissioner to investigate
the United States Steel Corporation. The commissioner did not
pay any attention to that resolution, but soon after Congress
adjourned he appeared at this office and stated that he believed it
was his duty to know the general purposes in detail about our busi-
ness, about our corporation, its capital stock, its liabilities, its assets,
the amount of its business, the costs of production, and its methods
generally. After considering the question very carefuUy, our finance
committee seemed to think that it was good policy, and perhaps
advisable, to aid the commissioner in making his investigation, and
the investigation has been going on more or less since that time. As
stated, however, by the deputy commissioner, we decided to furnish
the information that was requested at our own expense and by our
own labor. The questions which have been askea are very numer-
ous, very searching, and very comprehensive, and we have under-
taken to answer these questions in detaU. They involve a great
deal of labor on the part of our officials, and of the subsidiary com-
panies particularly, so much so that, with respect to many sub-
jects, the representative of the department has said that they would
not have the time to go over it if we went further into detail or
covered a longer period.
I am making this explanation because you are interested in it,
and because you may be more or less disturbed without reason. The
finance committee has been in close' touch with this matter all the
time. We have been in frequent and almost constant communica-
tion with Coimiiissioner Garfiold, and more or less with the Presi-
dent himself, concerning these matters. Up to date they have made
no complaint of us whatever, but we do not know any better than
you do what may be the future. We are trying to be frank and
accommodating to the department, and we suppose we have an
understanding that we will not be unnecessarily injured, and that
we wiU not be wrongfully charged without having an opportunity
to show the facts. We have seen nothing to show us that we need
anticipate any trouble. Quite likely, in some respects, we may be
traveling very near the line between propriety and impropriety.
It would be a very remarkable corporation if we were not. We are
not trying to place ourselves on any pedestal, but we propose to
UNITED STATES STEEL GOEPORATION. 3921
get right and keep right, and are try^ing to satisfy the powers that
be if we can, and keep out of trouble if possible.
So far as our business is concerned, we have no reason to com-
plain. Up to the 21st of the month, the last date of which we have
a record, our bookings on the average were about 36,500 tons per
day (above our capacity) as against a little over 30,000 last month,
and as against about 18,500 the same period last year, showing
that, for the season, our bookings are very large because this is the
dull season. Our prospects, judging by our present business and by
our figures and by the trade letters we receive from our selling
departments, are very bright indeed. There is no speck on our
horizon from what we have seen and what we can see.
Are there any questions, any suggestions or further business ?
On motion, duly seconded, the committee adjourned.
EiCHARD Teimble, Secretary.
New York, Novemher 24, }911.
The minutes of the Oliver Mining Co. consist of 1,200 or 1,300
closely written or typewritten pages, replete with the purchases of
ore lands or leases of ore lands and the acquirement of the control in
various companies owning ore lands or leased ore lands. The com-
pany was incorporated in 1892, and at the meeting of the incorpo-
rators Henry W. Ohver assigned the lease made to him by the Missabe
Mountain Iron Co. to the company for $75,000.
January 11, 1895, there is a copy of the report of the president to
the board of directors reporting an agreement with Mr. F. T. Gates,
president Consolidated Mining Co., subject to the approval of John
D. Rockefeller.
December 1, 1896, lease for Mountain Iron Co.
December 2, 1896, traffic agreement with Bessemer Steel Co.
January 1, 1897, agreement with Duluth, Missabe & Mountain
Railroad Co.
October 9, 1897, five notes given to John D. Rockefeller for
$100,000 each, running from one to five years — total, $500,000.
October 14, 1897, lease Keweenaw Association.
November 1, 1897, lease of Tilden mines.
January 12, 1897, purchase of 100,000 shares, entire capital stock
MetropoUtan Iron & Land Co., controlling Norrie group of mines,
par value $25 each.
May 18, 1898, purchase from Franklin Rockefeller of lease of
Zenith Ore Co.
August 23, 1898, bought control of Pioneer mine, 30,800 shares, at
$15 per share, 5,200 shares, at $20 a share, out of a total capitaliza-
tion of 40,000, $25 par value.
July 21, 1898, deal with Oglebay, Norton & Co., Cleveland, seUing
agents of Pioneer mine, to purchase 28,500 first-mortgage bonds
Pioneer Co. and to pay them $200,000 for cancellation of contract
with the Pioneer mine.
January 5, 1899, agreement with Carnegie Steel Co. (Ltd.).
November 29, 1898, option from Corrigan, McKinney & Co. to buy
Negaunee group of mines.
April 8, 1899, agreement signed by James Corrigan, Stevensor
Burke, and Price McKinney.
3922 UNITED STATES STEEL COBPORATION.
October 16, 1899, 84,000 shares of the Lake Superior Iron Co.,
purchased at $45 per share, substantially the entire capital stock;
also 100,000 shares of Aurora Iron Mining Co., at $8 per share. This
is the Gogebic Eange. Pittsburgh Steamship Co. chartered. Five-
sixths interest of the Carnegie Co. and one-sixth interest in the Oliver
& Snyder Steel Co.
November 20, 1900, loan of $200,000 to Corrigan, McKinney «6; Co.,
secured by leases on ore properties.
Note. — The leading spirits ia this company appear to have been Henry W. Oliver,
H. 0. Frick, and James Gayley. I am informed that Mr. McKinney, of the firm of
Corrigan, McKinney & Co.j referred to above, is in Cleveland, and if approached
may give valuable information.
New York, November 24, 1911.
The minutes of the Oliver Mining Co. consist of 1,200 or 1,300 closely
written or typewritten pages, replete with the purchases of ore lands
or leases of ore lands and the acquirements of the control in various
companies owning ore lands or leased ore lands. The compamr was
incorporated in 1892, and at the meeting of the incorporators Henry
W. Oliver assigned the lease made to hun by the Missabe Mountain
Iron Co. to the company for $75,000.
January 11, 1895, there is a copy of the report of the president to
the board of directors reporting an agreement with Mr. F. T. Gates,
president Consolidated Mining Co., subject to the approval of John D.
Rockefeller.
December 1, 1896, lease for Mountain Iron Co.
December 2, 1896, traffic agreement with Bessemer Steel Co.
January 1, 1897, agreement with Duluth, Missabe & Mountain
Railroad Co.
October 9, 1897, five notes given to John D. Rockefeller for $100,000
each, running from one to five years; total, $500,000.
October 14, 1897, lease Keweenaw Association.
November 1, 1897, lease of Tilden mines.
Januaiy 12, 1897, purchase of 100,000 shares, entire capital stock.
Metropolitan Iron & Land Co., controlling Norrie group of mines — par
value $25 each.
May 18, 1898, purchase from Franklin Rockefeller of lease of Zenith
Ore Co.
August 23, 1898, bought control of Pioneer mine, 30,800 shares at
$15 per share, 5,200 shares at $20 a share, out of a total capitalization
of 40,000— $25 par value.
July 21, 1898, deal with Oglebay, Norton & Co., Cleveland, selling
agents of Pioneer mine, to purchase 28,500 first mortgage bonds
Pioneer Co., and to pay them $200,000 for cancellation of contract
with the Pioneer mine.
January 5, 1899, agreement with Carnegie Steel Co. (Ltd.).
November 29, 1898, option from Corrigan, McKinney & Co. to buy
Negaunee group of mines.
April 8, 1899, agreement signed by James Corrigan, Stevenson
Burke, and Price McKinney.
October 16, 1899, 84,000 shares of the Lake Superior Iron Co.
purchased at $45 per share, substantially the entire capital stock.
Also 100,000 shares of Aurora Iron Mining Co. at $8 per share. This
is the Gogebic Range. Pittsburg Steamship Co., chartered — ^five-
UNITED STATES STEEL COKPOBATION. 3923
sixths interest in the Carnegie Co. and one-sixth interest in the Ohver
& Snyder Steel Co.
November 20, 1900, loan of of $200,000 to Corrigan, McKinney &
Co., secured by leases on ore properties.
Note. — The leading spirits in this company appear to haye been
Heniy W. Oliver, H. C. Frick, and James Gayley. I am informed
that Mr. McKinney, of the firm of Corrigan, McKinney & Co., referred
to above, is in Cleveland, an4 if approached may give valuable infor-
matiob.
UNITED STATES STEEL CORPORATIOX AUDITORS'
mXUTES AS EXTRACTED.
Auditors' Minutes, as Exteacted, Xovembee 7, 1901, to Decem-
ber 14-16, 1901 (also ^klEsruTES of Committee on Uniform
Costs, etc., Mat 24, 1901, to May 28, 1901).
At the meetings of the committee on uniform costs, tne presence
of Mr. Charles K. Winslow is noted as follows:
Charles Vogt and C. K. Winslow, American Steel & Wire Co ,
May 24, 1910, meeting.
C. K. Winslow, C. M. A.
C. K. Winslow, C. M. A. American Steel & Wire Co., meetings of
May 27 and 28, 1901.
July 9-10, 1903.
Auditors' meeting held at Xew York.
Present: W. J. Filbert, chairman, and the auditors of the several
companies.
"in connection with this matter (i. e., reports by auditors of check-
ing up and auditing of treasurer's disbursements), it was stated that
occasionally the president or other executive officials of the company
might be required to disburse money for corporate purposes, the
particular character of which it was not advissible to fully set forth
on the voucher; and the question was asked whether the auditors
should pass such vouchers without receiving at least personally a
statement of what the expenditure was for. Mr. Filbert stated what
the practice of the steel corporation was in matters of this kind and
that it might properly be observed in the subsidiary companies. It
was the concensus of opinion that a ruling on this matter should be
made by the steel corporation and the presidents of the subsidiaij
companies duly notified thereof. Mr. Filbert said be would take this
matter up with the proper officials of the steel corporation."
November 11-12, 1903.
Auditors' meeting held.
Present: W. J. Filbert, chairman, and auditors of the several
companies.
basis on which EECEIVING COMPANIES SHOULD CHARGE OFF TO
THEIR PEOFIT-AND-LOSS ACCOUNTS MONTHLY THE INTERCOMPANY
PROFIT ON THE MATERIALS RECEIVED BY THEM.
That receiving companies should charge off to their profit-and-loss
accounts the intercompany profits on materials received monthly on
the basLS! of these materials converted, with the understancung,
however, that individual companies may make such modification of
this as they deem feasible, in order not to abnormally overstate or
understate the net amount of their profit-and-loss surplus for the
month as affected by the amount of raw materials purchased from
3924
UNITED STATES STEEL COKPOEATION. 3925
subsidiary companies, which may have been conYerted but locked
up in semifinished or finished products. This understanding is
agreed to because no matter which way it is handled it will not affect
in any wise the net results to be reported by the steel corporation
for all companies. It was also understood that in making the neces-
sary inventory adjustments on January 1 that whether the inter-
company profits on semifinished and finished materials shall be charged
direct to the profit-and-loss accounts of the several companies or to
the account "intercompany profits in inventories" is left open for
further consideration.
December 8-9, 1904.
Auditors' meeting held at New York.
Present: W. J. Filbert, chairman, and the auditors of the several
companies.
PLANTS, ABANDONMENT OF.
This is a question of the accounting necessary in abandoning and
scrapping a plant. Mr. Filbert said the matter had been brought up
by the chartered accountants, and he had taken the ground that while
we had only credited back to the plant the net value of the salvage
and real estate disposed of it was not necessary to do anything fur-
ther, as we had put very large sums into the construction of other
plants which offset many times the value of the plant abandoned,
and therefore, if anything, we had written down the property account
by a greater sum than they could possibly have depreciated. Our
own people are now taking this question up, however, and he would
be glad to have the auditors' views on the subject. He asked if each
auditor knew that so far as his own company was concerned it has
amply protected itself by simply creditmg back to property the
salvage from abandoned plants.
It was stated that often the principal consideration about the pur-
chase and later abandonment of a certain plant was the fact that by
getting the plant we were able to eliminate its competition, and that
it was nard to estimate what amount to set apart for good will; that
the location of plants must also be taken into consideration, and that
the proposition was now very different from what it was before the
corporation was formed. It was thought that each company was
constantly increasing the value of its properties by our improvements,
which were paid from their earnings; that the increase in productive
capacity would show that the plants, considered as a whole, were
worth more now than previously even though an isolated mill or
plant is occasionally dismantled and scrapped. Mr. Filbert said that
auditors should be able to say at any time the question comes up that
such is a fact, and substantiate it by figures.
July 12-13, 1907.
Auditors' meeting held at Chicago, 111.
Present: W. J. Filbert, chairman, and the auditors of the several
companies.
SPECIAL STATISTICS — COMPANY COSTS 1904, 1905, AND 1906.
It was stated that the first arrangement for furnishing these sta-
tistics was that the 1902 and 1903 cost sheets would be rendered on a
company basis and that cost sheets for the later years would give only^
3926 UNITED STATES STEEL COEPORATIOls'.
particular and cost-aboA^e figures. It had been found, how'ever, that
satisfactory use could not be made of the cost sheets in this shape,
and request had been made that in lieu of giving metal cost there be
supplied schedules showing the cost of freight, the handling expenses
at tne receiving plants, and other charges at receiving plants which
are added to the cost of metal. It had been stated that satisfactory
results could hardly be procured on this basis, and after consultation
with corporation officials we are advised we would furnish company
costs for 1904, cost sheets for the principal products, such as rails,
heavy and light, biUets, blooms and slabs, wire rods, plates, struc-
tural mOls, principal merchant mills, sheets and tin plate, and bright
coarse wire. After discussion, it was thought the 1904 cost sheets for
the above-named products should be returned to the companies to
have the metal costs fiUed in on company basis. Comptroller's office
wiU advise each company what cost sheets for 1905 and 1906 will be
required fully completed on the company basis. Mr. Filbert said he
regarded this cost was necessary, but there. seemed to be no way to
avoid it.
COST SHEETS, COMPANY AND COEPOKATION COSTS.
A letter from Mr. F. J. Hyman, explaining a plan followed in their
company, showing both corporation and company costs on cost sheets,
was read to the meeting and samples of such cost sheets were sub-
mitted. These sheets have two additional columns, one showing
intercompany profit on material and the other company cost. Mr.
Filbert stated that after careful consideration the corporation had
concluded it would hereafter be necessary for it to have anriual com-
pany cost sheets, particularly if this special statistics matter may be
continued in the future. They did not ask for such cost sheets monthly,
but there was no objection to any company making such cost sheets
monthly, provided it did not delay returns to New York. After
considerable discussion it was decided that the companies desiring to
adopt the plan proposed by Mr. Hyman were privileged to do so, but
any company following the plan should not send both costs to the
New York office on the same sheet.
The comptroller stated it should be said that beginning with the
year 1907 annual cost sheets would be required for the corporation's
use, showing complete company costs; these to be additional to
the usual annual cost sheets on the corporation basis. The former
would not be wanted, however, for every cost sheet for which cor-
{)oration costs are furnished. They would be wanted for aU blast
urnace products, ingots, all rolling mUls, including skelp and mer-
chant mills, sheets and tin plate, and bright, coarse wire, but not
unless specifically requested for other wire milled department, and
hoops and tubes. They would also be wanted for splice bars and
rail joints, axles, spikes, bolts, nuts, rivets, bar, and fagots.
August 5, 1909.
Auditors' meeting held.
Present: W. J. Filbert, chairman, and the auditors of the several
companies.
It was suggested to have meetings of the chief clerks or works audi-
tors of the various companies, but the suggestion was not approved by
the auditors.
UNITED STATES STEEL COEPOEATION. 3927
United States Steel Corporation,
Office op the Comptroller,
New York, February 10, 1910.
Dear Sir: I beg to advise that in reply to a series of inquiries as given below, which
I submitted to our general solicitor, relating to corporation tax returns, responses have
been received from him as indicated:
Question. In what collector's district shall reports be filed by the respective
companies?
Answer. I am of the opinion that as a generAl rule —
(1) Corporations actively engaged in business should file their reports in the district
in which their principal operating office is located, even where they are incorporated
in another district.
(2) The reports of companies not actively engaged in business should be filed in
the district in which is situated the chief executive office of the corporation.
Question. Should the report be filed for every corporation which is still a live cor-
poration as of record, even though it may have no property or business transactions,
producing income?
Anaswer. I think a report should be filed for every corporation which has not been
legally dissolved, even though it may have no property or transactions producing
income.
Question. What explanatory note or notes, if any, should be indorsed on reports
of companies classified as below, which may have no operations producing income?
(o) Corporations which are engaged in construction or development of their prop-
erties and whose affairs have not reached an operating state and so have had no transac-
tions in income accounts.
(6) Moribund corporations which neither own nor operate property but have an
issue of stock and in some cases an issued indebtedness (assumed by some other com-
pany) and which for various reasons have not yet surrendered their charters.
(c) Corporations owning property and having outstanding issues of stock and in
some cases indebtedness, but whose property is operated by a lessee corporation under
an agreement or lease, the conditions of which are that the lessee retains for itseM,
without accounting to the lessor, all the net income from the leased property and pay-
ing all interest charges, if any, on the lessor's indebtedness.
{d) Corporations owning property and having outstanding issues of stock and in
some cases indebtedness, but whose property is operated by the parent company, i. e:,
the corporation owning the stock of the first-named company without any accounting
being made to the owning company for the net income derived from such operations.
The parent company in such cases pays the interest, if any, on the indebtedness of the
company whose property it operates.
Answer. I suggest the following notations on the face of reports of the various classes
of corporations referred to in your letter:
(a) "Engaged only in construction and development and therefore has received no
income. "
(6) "This company owns no property. During the year 1909 it conducted no busi-
ness and received no income. "
(c) "AH property of this company is under lease, under the terms of which the lessee
retains all of the net income derived from the leased property. Any net income
derived from the property of this company will therefore appear in the report of the
{d) "All of the property of this company is managed and operated and all the net
income derived therefrom is retained by another corporation, which is the owner of
all the capital stock of this company, without any separation of the income of this cor-
poration from that of the operating corporation. The amount of the net income of
this company, if any, will therefore appear in the report of the other company."
Question. What form of protest, if any, should be filed with returns?
Answer. I think that there should be attached to each report a protest in substan-
tially the following form:
"'The undersigned corporation files this return in accordance with the provisions of
section 38, act of Congress of August 5, 1909, but under protest and reserving to itself
all rights to a return and cancellation thereof in the event that the said law shall be
declared to be invalid or void in part or in whole."
Co.,
By , President.
I think this protest should be affixed to the face of the return.
Question. In the case of those companies which are the result of a consolidation or
merger of other companies and in which merger the aggregate of outstanding capital
3928 UNITED STATES STEEL CORPORATION.
stocks of the old companies was reduced, the new company, however, carrying the
amount of the reduction in its accounts as a "capital surplus" can the amount of this
capital surplus account be considered as part of the capital stock in determining the
total of interest-bearing debt, the interest on which may be deducted in ascertaming
the net income subject to the tax?
Answer. I do not think the capital surplus account can be treated as "capital
stock." One of the reasons for reducing the capital stock was to reduce taxation,
and while it is true th& capital investment remains the same as before, the excess
which is now carried as "capital surplus account" is not capital stock and is not so
treated in reports to the State in which the company may be incorporated or in any
other way. The law expressly says "capital stock" and I think we must accept the
situation.
Question. In case a parent company absorb an operating loss or deficit arising from
transactions on income account during the year of one of its subsidiaries can this
loss be deducted in parent companies tax return?
Answer. I think the amount of the deficit of the subsidiary can be shown as a loss
of the parent company and as income of the subsidiary, provided there is no obliga-
tion on the part of the subsidiary company to return the amount of this deficit to Uie
parent company and no entries on the books of either company to make it appear as
though such an obligation existed. If there be no such obligation, the matter should
be treated as stated in the reply to the succeeding question.
Question. When advances are made by one company to another under a guarantee
of the indebtedness of the latter company and the company making the advances
holds the other company liable to repay the amount, can the amount of such advances,
if charged off by the guarantor company to its profit and loss be deducted by it from
gross income in its tax return?
Answer. The amount of such advances would, as I understand it, be a debt due
from the guarantee to the guarantor company, and while the guarantor company may,
if it pleases, charge this amount off to its profit and loss or surplus or income account,
nevertheless so long as the debt exists and has not been cancelled, it seems to me it
is not a loss which can be deducted from the income of the guarantor corporation.
Yours, truly,
W. J. FiLBBHT, Comptroller.
P. S. Since the foregoing was written we have received advice of a formal ruling
made by the Treasury Department as to what should be considered the "principiu
place of business " of the corporation in filing its tax return. This ruling is as follows:
"The principal place of business has been held by this oflSce to be the place where
the general books and accounts of the corporation, etc., are kept, and from which its
business is conducted and directed.
"Whenever the request for filing a return is received from a collector of the district
where a branch oflBce is situated, it is proper to inform such oflBcer that the return
has been or will be made to the collector of the district in which the corporation, etc.,
has its principal place of business."
You will note that Mr. McVeagh's opinion as first expressed herein is entirely in
accord with this ruling.
W. J. B.
EXTRACTS FROM MINUTES OF GENERAL MANAGERS
OF SALES.
MINUTES, OF GENEEAL MANAGEES OF SALES.
May 22, 1901.
Meeting held.
Present: Joshua A. Hatfield, vicepresident, representing American
Bridge Co. of New York; John A. Topping, vice president; James L.
Sharkey, representing American Sheet Steel Co.; Severn P. Ker, vice
president and genersu manager of sales, representing American Steel
Hoop Co.; Frank Dickerson, general sales agent, representing Ameri-
can Tin Plate Co.; Frank Naackes, general sales agent, representing
American Steel & Wire Co. ; H. P. Bope, first vice president and gen-
eral manager of sales, representing Carnegie Steel Co. ; W. C. Magee,
vice president, representing H. C. Frick Coke Co. ; George Baker, gen-
eral manager of sales, representing Illinois Steel Co. ; Daniel Coolidge,
president, representing Lorain Steel Co. ; W. P. Siebert, general sales
agent, representing National Steel Co.; Edward Worcester, general
sales agent, representing National Tube Co.
For the general information of those present the minutes of the
meeting of the Trafiic Managers' Association were read.
It was moved and seconded that the prices on finished material
between constituent companies shall be the lowest market price,
regardless of quantity, ruling on such material at the date of sale.
Carried.
After an extended discussion in reference to the prices to be
charged by the producers of billets, sheet bars, and other raw material
and entering into finished goods produced by any of the finisliing
properties of the United States Steel Corporation, it seemed to be
the general opinion that the price to be charged for the raw material
to the finishing company should be so adjusted as to enable such
company to increase its export business on finished material to a
maximum.
President Schwab, of the steel corporation, came into the meeting
at this point and expressed his appreciation of the efforts of those
present and the hope that the meetings may result in the greatest
possible good to eacn of them and to the companies they represented
as well as to the steel corporation.
The chairman explained the subject then under discussion, and
President Schwab fully concurred in the opinion above expressed.
It appeared to be the sense of the meeting that a special price on
raw material to the finishing properties on account of export busi-
ness be covered by a concession made the finishing company on a
tonnage of raw material equivalent to the tonnage of finished goods
exported each month plus the actual loss in prices of manufacture
when the price abroaa was such that the fiimshing company was
forced to sell its output at less than a fair margin of profit.
It was also the general opinion that outside companies making
finished goods out of material purchased from any of tlie constituent
3929
3930 UNITED STATES STEEL COBPOBATION.
companies of the corporation, which goods do not compete with light
foods produced by any of the constituent companies, would have a
ght consideration in reference to price wherever it was necessary to
retain or extend their market abroad on such finished goods.
June 18, 1901,
Second meeting.
July 17, 1901.
Third meeting.
TEEMS TO CONSTITUENT COMPANIES.
The following resolution was adopted :
At a meeting to-day of the general managers of sales association a resolution was
adopted recommending that settlements on business interchanged between constitu-
ent companies be on the basis of 30 days net cash, with the imderstanding that the
American Bridge Co. shall be granted special terms on account of the peculiar char-
acter of its business, these terms to be mutually agreed upon between it and the
company furnishing the material.
October 16, 1901.
Fourth meeting.
In addition to the various sales managers there were also present
the following credit men: H. P. Howell, J. F. Hazen, E. A. Tait,
W. H. Connell, J. K. Thomas, A. O. Gary, J. D. Culbertson, A. J.
Singer, W. W. White.
It was moved and carried that the credit men form and work out
the details of an organization for the primary purpose of obtaining
uniformity of credits.
November 20, 1901.
Fifth meeting.
December 18, 1901.
Sixth meeting.
The chairman stated that the traffic managers had been -invited
for the purpose of discussing several resolutions which were adopted
at a recent meeting of their association, as foUows:
Resolved, That this committee is a unit in the belief that an agreement conceding
to consignees the privilege of routing is the equivalent of selling f . o. b. mill, and that
the managers of sales be so informed with a full explanation of the practical effect on
OUT interests from the transportation standpoint; and it was also resolved that this
committee request the manners of sales to confer with the freight department before
making any similar agreements as to other districts where rates of freight are often
demoralized and opportunities afforded for securing economy in transportation costs,
and it is further resolved that the custom of giving over control of routing to con-
signees of material sold delivered not only reduces the prestige of the freight depart-
ment and thus lessens the opportunities for securing desirable and necessary results
with railroads in other directions, but it also introduces complications and fnction.
January 15, 1902.
Seventh meeting.
February 19, 1902.
Eighth meeting.
export business.
On the general subject of export material the chairman stated that
in a recent talk with Mr. Schwab he had expressed the opinion that
it would be advisable to import whatever raw steel is necessary for
the finished product we export, thus saving the rebate for ourselves.
UNITED STATES STEEL. OOEPOEATION. 3931
The ensuing discussion, developed that the constituent companies
are exporting at present about 20,000 tons per month, and it was
the opinion that the situation would be materially strengthened by
this action, and that it would, in addition, relieve the steel mills,
which are now so badly congested. It was stated by the chairman
that steel can be bought at a figure approximately $22 c. i. f.
March 19, 1902.
Ninth meeting.
ADVEETISING.
The chairman brought up this question for consideration, stating
that Mr. McSwigan, the press agent for the Carnegie interests, had
submitted a plan which, if adopted, he beUeved would not only
secure much better results than are now obtained, but would effect
considerable saving, in addition. The matter was taken up with the
steel corporation some time ago, but nothing definite was done,
although Mr. Dickson advised it would receive careful consideration
at the proper time.
Mr. McSwigan's letters to Mr. Schwab and the chairman were then
read, as follows :
To Mr. Schwab:
In looking over the various trade and engineering publications it will be found that
the United States Steel Corporation companies are very extensive advertisers, and
the aggregate annual expenditure for this piurpose aaust be considerable.
In 5 publications which came to hand to-day I noted no less than 35 advertisements
of the different companies, the annual cost of which probably exceeds $10,000. Much
of this expenditure, it seems to me, is ineffective, either as an aid to securing business
or promoting the interests of the companies otherwise, because placed in journals of
little or no prsstige or circulation or interest which show a lack of appreciation of
this patronage by injudicious criticism, erroneous market reports, etc.
Statements will doubtless show that the corporation companies place advertising
contracts approximating over $50,000 per year, and I beg to suggest to you that this
branch of tne business of the respective companies could be handled to much better
advantage to the different interests, and the United States Steel Corporation would
receive more friendly consideration from the press and the public, if flie distribution
of all this patronage was made, in a way, imder the name and by an agent of the United
States Steel Corporation.
The Westinghouse.and other large manufacturing companies with diversified inter-
ests, which do much advertising, have found the method proposed effective in their
business for years, and there are many good reasons favoring the idea which could be
better given with an interview. If the suggestion appeals to you, I would be pleased
to have you consider my services available in connection with my duties as press
agent here, and would be glad to have an opportunity to present the matter person-
ally whenever convenient to you.
To Mr. Bope:
As requested, I send herewith letter to Mr. Schwab on the subject of advertising,
with his reply thereto; also reply of Mr. Dickson, to whom my letter was referred.
Of course, as I explained to you this morning, the principal consideration favoring
this proposition is the benefit to be derived by concentrating the distribution of this
patronage, thus giving an individual company the prestige and influence of all the
companies, and insuring a quid pro quo to each in the way of reciprocal courtesies
and immunity from hostile criticism. This is an implied condition of contracts for
advertising generally, but it seems some of the journals supported by the steel com-
panies have come to regard these contracts as their vested or property right and to
forget their reciprocal obligations much too often, because it appears to be no one's
busiaess particularly to call them to account when they do forget.
The companies have the right and should insist that trade papers receiving their
support should in turn be supported. You_ yourself are familiar with the policy of
the Iron Age in the matter of market quotations. The Iron Age is the greatest bene-
ficiary of them all, receiving, I believe, something like $10,000 per annum. They
31572— No. 53, pt. 2—12 ^13
3932 UNITED STATES STEKl. CORPOBATION.
would hesitate to give cause tor complaint i( thoy uudprstood tliia ro\ oi\uo depended
upon tlieir good beha^'io^.
I am aware that much of the advertisins; of the coiupauics is fjnon us a matter of
policy or subsidy, and in cases whore it is oxpodiont and proper n-tum is made, this
should be continued; but there is no doubt tbnt many contracts of this character
have been misplaced and the benefit is lit t le or nil. These might bo cut oil' and much
money saved without jeopai-dizing the oompanios, as we have done in the steel hoop
companv.
M'here advertising is done for the purjieso of soiiiriuf; business, I submit that it would
be to the interest of the oonipHnies to have the oontracis made and the forms and com-
position of the ads )>rovarod hv an advertising nianajier whose experienoe fits him to
do tlie work and disoviniinato in the seloolion of nuHliunis in order In secure the most
effective results. I respectfully snttgost that my seven years' training in the lunvs-
papor bvisinoss and over live years' iiileroourso with the daily and trade press aa a
press aijont of the Carnegie interests givonu' an understaiulingof the steel-lmdo pro))-
osition which I believe entitles the offer of uiy services in this ooniuvtion to the
favoHible consideration of your ussooiation.
The expense of managing this business might be divided among the eoninauios in
proportion to the amount of advertising done by each and would therefore be but ii
small charge especially as compared to the 25 per cent oommiesion which tlie adver-
tising agencies usually receive (and the advertiser pays), although the advertiser i»
made to believe otlierwiac.
I trust the Sales Managers' Association will be agreeable to the suggestion and tliank
you for tlie kindness in presenting the matter.
Mr. Topping suggested that in his opinion the most desirable way
to handle this matter wouUl bo to have an ftdvortising iHimmittoc,
the prestige of which he thought would ft>tlound to the benefit of
the whole corporation, and after some discussion ho moved that it bo
recorded as the sense of the-meetino; that 1 his association fecoraniend
each company appoint st)nio one to represent it on an advertising
committee of the Steel Corporation, the said committee to elect a
president and secretary and to distribute advertising matter for each
company in accordance with its wishes.
The motion was duly socondod and carried by unaiiimoUH vote.
ADVERTl.SINd ASSOCIATION.
Aphil 16, \\m.
Tenth meeting.
The chairman road the following letter from Mr. McSwigan bearing
on this subject:
Complying with the general managers of sales association resolution providing lor
the organization of an a<lverlising committee of the United States Stool ("orjioraliim
companies, I respectfidly report that I have taken th(i nocossary preliminary stops
to effect the organization and a meeting of the advertising committee will be called
and the pro))osed plan niad{> oiicrativo as soon as the reports requested from th(^ com-
panies have been received.
The companies which have named committeemen thus far are as follows;
American Steel & W'ire Co., li. \l. Avers.
Anu'rican Sheet Steel Co., H. W. I'rall.
American Tin Plate Co., W. C. Croneineyer.
National Tube Co., lOdward W'orccsler.
Lorain Steel Co., 1' M. Hoyd.
American Bridge Co., W. II. Siratton.
Carnei'ie Steel Co., C. H. Ab'Swigan.
American Steel Hoop Co., C. II. iMcSwigan.
National Steel Co., C. II. McSwigan.
The Illinois Steel Co. did not name a represeiitnlivo as it does not advertise.
Slatoinenls from the companies named, excluding the Tin Plate, Carnegie, Sloel
Hoop, and National Steel (which at dale had not reported) show aii expemlitiir" for
advertising in trade scieiitilic class, daily and wi'okly i)iiblicali(inH, aggregutiiiR
UNITED STATES STEEL CORPORATION;. 3933
$61, ISHi. 73 per annum. The statements of the companies to report will increase
this to probably $70.iXK).
Advertising is placed with 2S5 publications with a total of 317 contracts. Of this
number 157 are on a standing or continuous basis: the other contracts are intermittent
for brief periods and are with dail\-. semi-weekh and weekly publications, reaching
agricultural territory.
The expenditure of each company rt^porting is as follows:
-Vmorican Steel i.^- Wire Co $-7, 043. -10
H. C. FrickCokeCo S.lOo.OO
American Sheet Stool Co 11,394.35
-\mericau Bridge Co 9. S5-t. 12
National Tube Co 7.320. 77
Lor.tin Stool Co 2, 479. 00
Total 61,196.73
t>f this amount the principal stool-trade journals. The Iron Age and the Iron Trade
Review, receive $6.07i4.4S and f2,08o.S3, respectively.
From a cursorj- examination of iho reports it appears that this expenditure can be
reduced without injury to the business of the companies or sacrifice of the good will
of the publications which are really trade factors and the favor of which is desirable.
To what extent it will be advisable to retrench can only bo dotormined after advising
with the representatives of each company and canvassing the consideration for and
against the continuance of every contract. Soveial of the companies place advertis-
ing through their own agents, aiid as the control of all advertising companies is essen-
tial to the effective operation of the plant, proposed contracts with agents should be
aV^rogatod as soon as tne advertising aepartment can take over the business.
Publisher? pn'fer to deal direct, as the commissions paid to agents are saved and our
patronagt" would be much more sought .
First-class joinitals pay little or no commission, consequently, the agents" business,
unless restricted, goes to poor mediums, and the money is virtually wasted.
I woxild respectfully sug)ji.\-'i that your advertising department be authorized to con-
tract for advertising for the soxer^jil companies in the name of the Ignited States Steel
Corporation comj>anios asstx'iation or I'nited States Steel Corporation companies
publication department, as the Westinghouse companies designate their advertising
department.
Bills should be rendered to the assixiation with the name of the company for which
advertising is charged, itemized, and after checking and indorsing passed by the man-
ager to each company for payment.
The attention of your assvx?iation is iii\ ited to the following suggestion pertaining
to the dissemination of market quotations and information for the trade, mercantile,
and daily press.
To avoid conflict of statetuent as to market prices and conditions it has been the
practice of the Carnegie Stool Co., as you are aware, to furnisli for publication through
Its press agent such information as should be given about the market*. This arrange-
ment has bivii a convenience to the market reporters and has relieved the sales man-
ager and his assistants from the time- wasting duty of frequently rehearsing the market
details to a number of reporters every week, besides insuring ag;\inst one sales repre-
sentative making statements at ^•ariance with the statements of another.
I propi^e that an omnibus arrangement of this sort be made for the benefit of all the
companies and that the market bulletin be issued weekly from the advertising man-
agers" office, giving a r&iun^ of the cturreut prices, market conditions, and outlook with
such genejal information about the business booked as can be published without
detriment to the companies or their customers.
The data for this bulletin should be furnished by the sales department of each
company, visaed by the general manager of sales, and mailed or telegraphed to this
office about Thursday of each week.
The fecilities of the department as a medium for the publication of information for
the daily press might also be utilized by the executive department whenever neces-
sary or desirable.
i will be pleased to advise you of the operations of the advertising committee and
will send your association a copy of the minutes of each meeting.
Mr. Dickson said he wotild like to correct the inference regarding
the total of their advertising which aggregates over S20,000, bringing
the total for all companies up to about SI 00,000.
3934 UNITED STATES STEEL COKPOKATION.
During the ensuing discussion it was suggested that the sales man-
agers in all cases be privileged to designate the publications with
which advertisements are placed.
It was finally moved, seconded, and carried by unanimous vote
that the advertisiag association be requested to hold its initial meet-
ing with the sales managers on their next regular meeting day for
the purpose of indicating the nature and scope of the work they are
are about to take up.
PEIOES TO OONSTITTJENT COMPANIES.
In response to question regarding the recent action of the presi-
dents fixmg the price to constituent companies at 5 per cent less than
the lowest price quoted, the chairman stated it was his understanding
this should be interpreted as meaning 5 per cent below the lowest
market rate, and that it only applies to such products as are used in
any work for reshipment to the trade.
Mat 2, 1902.
Eleventh meeting.
ADVERTISING ASSOCIATION.
Mr. McSwigan, for the advertising committee, reads the following
report :
Since tlie last meeting of your association additional statements of the advertising
expenditures have been received from the tin plate, Carnegie, and steel hoop companies,
which at° that date had not reported. These statements enable us to make a com-
plete summary of the expenditures for publication advertising only as follows:
American Tin Plate Co |27, 663. 03
American Steel & Wire Co 27, 016. 05
American Sheet Steel Co 11, 394. 13
American Bridge Co. of New York 9, 854. 15
National Tube Co 7,320.77
H. C. Frick Coke Co 2,495.00
Carnegie Steel Co 1, 890. 00
Shelby Steel Tube Co 1, 850. 00
American Steel Hoop Co 1, 765. 00
Lorain Steel Co 2, 479. 00
Total 93, 727. 38
lUinois Steel Co., none.
National Steel Co., none.
This statement covers the advertising in 130 publications, with a total of 172 adver-
tisements, which are generally on a continuous contract basis from year to year and,
with a few exceptions, may be classed as trade journals; also 64 publications utilized
by the tin plate company in advertising its M. F. roofing tin, which are also on a yearly
contract basis; and 162 publications used by the American Steel & Wire Co. for brief
periods in advertising its woven-wire fencing, making a total of 356 mediums in which
one or more of the companies have advertising at the present time.
To the sum of $93,727.38, expended for advertising in trade and agricultural journals,
should be added at least $10,000 for special advertising not included in the reports
received. No estimate of the cost of book and pamphlet advertising or the cost of
(plates) illustrations has been made, but $15,000 wiU probably cover this item, so that
the expenditures chargeable to advertising now approximates $125,000 per annum,
excliisive of the cost of advertising managers' services.
As this is the first meeting of the advertising committee, it has not formulated ito
plans for the handling of this business; and, as I understood the invitation to meet
this association, we are here for advice and instruction and to agree upon the plan
which shall govern the advertising committee's operations.
UNITED STATES STEEL, OOBPOEATION. 3935
As sponsor for the proposition which led to the creation of this committee I would
suggest the following as a basis for discussion: That the advertising committee be
authorized to establish a department to be named the United States Steel Corporation
Cos.' publishing department, to contract for advertising either in the name of the
Steel Corporation or the operating company advertised or the publishing department.
The various Westinghouse interests maintain a department of this kind Known as
the Westinghouse Cos.' publishing department. Contracts are made in the name of
the several companies advertised^ but as there is an advantage to be gained by con-
tracting for space without specifying same for any particular company, I would
recommend that contracts be made in the name of the corporation or in the name
of the publishing department. The character and extent of the advertising should
be determined by the representative of each company and the department manager
cooperating closely with the sales department. Duplicate contracts should be
required and payments remitted by the department and charged to the company
advertised. The accounting system should be adopted to conform as far as possible
to the system now employed in making general purchases, such as pig iron and fuel.
The recommendation made in a previous report in regard to advertising agencies is
reported. As it is essential to the effective operation of the department that all adver-
tising patronage at the disposal of the steel corporation companies should be under its
control, the existing arrangements between several of the companies and advertising
agents should be discontinued unless binding contracts exist. If such contracts[^have
been made, they should be terminated at the time of expiration. We hope to afford
the companies as good or better service in the handling of the advertising as they[have
at present. Advertising to the amount of $47,000 per annum is placed tiirough agents
for which service they receive an average of 13 J per cent, or about $6,500 periannum.
In addition to the commission paid by the companies it is the admitted practice of^one
of the agents, and probably all, as we will likely discover when we go into the' matter,
to solicit commissions from the publications receiving the business. The commissions
thus legitimately taken are of course paid indirectly by the company advertising and
will average fully 15 per cent, so that nearly 30 per cent, or over $14,000 of the $47,000
which the companies spend yearly for advertising through agents, goes to the agents.
Certainly their services are high at that. If all the advertising was done on this basis,
nearly $30,000 would be paid agents yearly.
A considerable saving m advertising (about $25,000 per annum) can be effected by
reducing the space of the standing advertisements in trade publications one-half and
by cutting out others entirely where it appears that the companies or their trade will
not suffer thereby.
Cheaper rates can be secured by making long-time contracts and utilizing the space
for different companies alternately when it is desired to reach the same class ofjbuyers.
For instance, a Pittsburgh paper chaiges 18 cents per page for regular display space for
an advertisement inserted once, while on a yearly contract the rate is only 6 cents.
And if it is desired to secure publishers' net rates to agents — ^that is, the rate, less
agent's commission, which ranges from 10 to 25 per cent off — it would perhaps be neces-
sary to organize an advertising company without apparent connection with me business
advertised, and while a large saving could be efiected by doing this, we would lose to
some extent the collateral advantages which accrue to the customer who deals direct.
This is a consideration which should determine the name under which the advertising
department shall do business. I would recommend that we deal directly with the
publishers under the name of either the steel corporation, the operating company
advertised, or the publication department, preferably the first for many good reasons.
Our patronage would be more desirable if we did not seek to drive hard bargains with
publishers, and while this advertising matter should be treated as a strictly business
proposition our interests would be a matter of more solicitude if we did not ask con-
cessions, and the good will benefits resulting could be counted as intangible revenue.
The chairman read a letter from Mr. Baackes stating that after
studying this matter thoroughly he has come to the conclusion that it
is to their interest not to join hands with any central bureau, therefore
he could not vote for the proposition on this basis.
Mr. Ayers explained that but two lines of their goods are advertised
with a view to the effect of the advertising itself. These are wire rope
and wire for electrical work on which competition is close. Certam
lines such as fence are advertised by the general sales agents in certain
localities at certain seasons in such ways as the circumstances seem
to warrant. These advertisements are continued only long enough
3936 UNITED STATES STEEL COKPOEATION.
to get a traveling agent well started, and then are withdrawn. In the
nature of the case these advertisements must be prepared by men
thoroughly familiar with the trade and the goocls. It is on this
account that Mr. Baackes feels their company's interest would best be
served by continuing their present policy, thus retaining for their sales
agents the prestige with the various publishers obtained by placii^
advertisements with them.
Mr. Worcester said the purpose for which the tube company adver-
tises is practically identical with the Steel & Wire Co., but none the
less did he consider that such an advertising association as proposed
would be of decided benefit to his company. His understanding was
that the sales managers of the various companies was to have absolute
authority to indicate what advertising should be done on their behalf.
The other members spoke in the same strain.
After some further discussion, Mr. Worcester moved that the
advertising bureau be established under the name proposed by the
chairman, viz: "The publication department of the constituent
companies of the United States Steel Corporation" and that each one
be invited to place all their advertising through this bureau, any
company not prepared to do so at present to take such action later.
This motion was duly seconded and carried.
FIVE PEE CENT DISCOUNT TO CONSTITUENT COMPANIES.
Referring to this question, the chairman stated that in view of the
different interpretations placed upon the recent ruling of the president
by the general sales managers, the Carnegie, Hoop, and National com-
panies nave discontinued allowing any discount whatever. There is
nothing now that the general sales managers can do, in his opinion,
but refer the matter back to the presidents and have them advised
the exact intent of their instructions.
It was moved, seconded, and unanimously agreed that the chairman
draw up a letter to the presidents, after a conference with the other
general managers of sales, stating the points which should be defined
in order to make the matter perfectly clear.
June 18, 1902.
Twelfth meeting.
Five per cent discount to constituent companies abrogated and
resumption of old basis of the lowest market price regardless of quan-
tity, tne chairman to forward this recommendation by letter to the
presidents.
July 16, 1902.
Thirteenth meeting.
IMPOETATION OF BILLETS EXPOET SALES.
The chairman presented this question for consideration, reading the
following letter to Mr. James Gayley, first vice president of the steel
corporation, from Mr. Edenborn:
About a year ago I pointed out to our president, Mr. Schwab, the fact that much
steel was being imported into this country; and inasmuch as the steel and wire com-
pany was an exporter of steel products 1 recommended that we import steel for the
wants of those of our companies' mills which manufacture export articles, as thereby
we would be able to sell our own made billets in this market and receive back the duty
UNITED STATES STEEL CORPORATION. 3937
paid on imported steel. Acting on my suggestion, a purchase of billets was made, and
no doubt the company ha^been considerably benefited thereby.
The last report of our London statistician gives the iron and steel exports from England
to the United States for the seven months ending July 31, 1902, as 233,433 tons, as
against 71,221 tons for the seven months ending July 31, 1901. It is therefore appar-
ent that many users of steel are making allowances and connections with European
producers of steel and import same, manufacturing such articles mostly for domestic
consumption and the duty rests with the Government.
I have been and am still of the opinion that tlie United States Steel Corporation
would largely benefit by the endeavor to supply the consumers of steel in this country
and if unable to produce sufficient, to import itself from Europe whatever the shortage
might be; benefits from such a system could be derived also from the saving in freight,
as the steel corporation could supply those subsidiary companies nearest to seaboards,
endeavoring to have such steel made into articles for export as largely as possible; and
its own production of steel could be probably at a lower freight rate used to supply its
customers. Another advantage would be that the corporation would have a much"
better oversight regarding the requirements of competitive works than if such works
did their own importing.
Our corporation has men in European centers who could always ascertain if English,
Belgian, or German makers were especially anxious to dispose of some of their billets,
slabs, or other products, and I am still of the opinion also that the exports of the corpo-
ration could be vastly increased. The sale of hoops, I believe, should be placed with
the export department of the American Steel & Wne Co.; that department being thor-
oughly organized and experienced in dealing with foreign nations, acquainted with
customs, credits, and other trade conditions, could take, care of that line to very good
advantage in addition to what it abeady handles; and as they are accustomed to for-
eign measurements, moneys, and standards, they might also assist in the sales of various
tubing; in fact it might be best to place the sales of all tubes and tubing in foreign
countries with, the department referred to, for reasons enumerated.
The wire company has in past years collected large sums from the Government in
duty drawbacks, not only on steel imported, but in many cases where such steel was
purchased from the Bethlehem Steel Co., and foreign ores had been entered into the
production of the steel by that concern, the wire company succeeded in getting back
the duties thus paid.
FIVE PER CENT DISCOUNT TO CONSTITUENT COMPANIES.
The chairman reported having addressed a letter to the presidents
requesting them to abrogate this arrangement, as follows:
At the last meeting of the general managers of sales association the resolution adopted
by the presidents with reference to the 5 per cent discount between constituent com-
panies on materials for construction and repair was carefully considered. There was a
wide difference of opinion as to the value of this discount, and in view of the diffi-
culties surrounding the same the sales managers association directed me to respectfully
request the presidents to reconsider their action and abrogate this discount. Certain
companies are not allowing it and others only under certain conditions.
1902.
Fourteenth meeting.
October 15, 1902.
Fifteenth meeting.
November 19, 1902.
Sixteenth meeting.
December 17, 1902.
Seventeenth meeting.
THE ABSORPTION OF THE UNION-SHARON INTERESTS.
Upon inquiry by the chairman all the members expressed themselves
as believing that the benefits to be derived from the absorption would
be very great.
3938 UNITED STATES STEEL COBPOEATION.
The chairman stated it would give them considerable assistance in
secm-jng business which could not be handled t)wing to the shortage
of open-hearth steel. He cited as an example the business of the
American Car & Foundry Co., which could be obtained at all times on
an equal basis. In view, therefore, of the increased tonnage of open-
hearth steel at the disposal of the corporation, he said that Mr.
Worcester, Mr. Baker, and himself would take up with the Car &
Foundry Co. the question of securing a greater proportion of their
tonnage.
January 21, 1903.
Eighteenth meeting.
SALES or BILLETS AND SHEET BAES TO INDEPENDENT CONCERNS.
Mr. Baackes mentioned that since the corporation has acquired the
Union and Sharon properties a number of outside people have come
to them with reference to purchasing their requirements. These
people have been getting their supply or steel abroad, and he thought
it would be a good idea for some of the subsidiary companies to take
this tonnage at competitive prices.
The chairman replied they have made some sales to independent
mills but have always taken into consideration the constituent com-
pany whose finished product the sale would likely affect before con-
cluding negotiations.
Mr. Preston remarked that this policy is in accordance with the
decision reached by the presidents. The tin-plate people do not think
sales should be made to their competitors at competitive prices, but
the sheet-steel people are quite favorable to the arrangement, as they
realize that unless the raw material is supplied by the corporation it
will be obtained from some other source. It is, however, the policy
to run all the finishing plants full, then if there is any surplus sales
should be made to the trade.
February 18, 1903.
March 18, 1903.
Nineteenth meeting.
Twentieth meeting.
EXPORT business ME. PARRELL'S REPORT.
The chairman stated that Mr. FarreU has made a report in this
matter and he has marked several paragraphs which he suggested be
taken up separately. He then read the following:
Extract 1. Aside from this the development during the past few years of the demand
for the consumption of steel products in this country lias stimulated the construction of
outside finishing plants to such an extent that the corporation will eventually be con-
fronted with the alternative of restricting the production below the normal capacity
of its finishing plants or of finding an outlet abroad for a much larger tonnage than is at
present exported.
The discussion following developed the feeling that while it is
anticipated the establishment of a regular export bureau will not
result in disposing of a much greater tonnage abroad than is the case
to-day for some httle time, it was felt that Mr. Farrell's idea of keep-
ing a constant flow of goods abroad is the right one.
Extract 2. There is no possible doubt that if the American steel manufacturers
had abstained from selling raw material at cost or less to Etiropean manufacturers of
UNITED STATES STEEL OOBPORATION. 3939
finished products, the exports of the wire company would have shown materially better
profits; and if the other American companies, now subsidiary companies of the United
States Steel Corporation, had maintained a competent export organization for market-
ing their finished products abroad to proper advantage they could have secured orders
from neutral markets for a large tonnage of finished products at remunerative prices.
It is impossible to condemn too strongly the selling of raw or semi-finished material to
markets in which sales of finished products are possible or of supplying our European
competitors with cheap material with which to compete with the various companies'
finished products.
While the discussion brought out that it was not desirable to export
raw material, at the same time it was pointed out that there may be
times when this could be done to advantage in order to keep certain
of the plants running. It was agreed however that the corporation's
policy should be to export finished products rather than raw.
Extract 3. In selling goods abroad, the best results are frequently obtained by fol-
lowing the line of least resistance, by adapting ourselves to the circumstances as they
exist mstead of attempting to force American modes of doing business upon people
who do not recognize any urgent necessity for buying from America or for changmg
established customs of long standing. As a general prmciple it will usually be found
that the modes of doing business current in any particular community are based upon
experience and are those which are most suited to the circumstances of that particular
community; and when we find that our English and Gterman competitors (whose suc-
cess in the export field is beyond question) have adopted certain methods, terms of
sale, etc., in dealing with a certain market, those methods or terms of sale are apt to be
the very best ones fliat are practicable and as safe as the average risks of doing business
in any country.
•
Commenting on this the chairman said it is so contrary to American
ideas that no doubt great difficulty will be experienced in adopting
the plan proposed. Taking steel rails for example, they have not
found, except in rare instances, where inquiries submitted covered
identical sections in a period of time of from 6 to 7 years. They have
taken a decided stand against furnishing new sections owing to the
immense number of rails it is necessary to carry, and have in a num-
ber of cases induced the foreign buyer to take their standard sections.
As a matter of fact, he added, perhaps 80 per cent of the rails furnished
to-day are standard.
Extract 4. The wire company has obtained good results by adopting the principle
of selling in each market the goods to which it is accustomed, of manufacturing the
quality called for, supplying the goods in various shapes, lengths, and gauges current
in each market, and of paclang in the maimer desired hy the customs. So far as it is,
practicable and consistent with manufacturing conditions this principle should be
applied to the execution of export orders for any of the products of the corporation's
subsidiary companies.
The chairman mentioned it must be borne in mind that both the
tube and wire companies have standard articles which they can put
up for stock, whereas with beams and plates this would not be possible-.
Extract 5. It was decided amongst other things that the export organization of the
wire company was to be utilized for handling the export business of the sheet steel
company, tin plate company, and steel hoop compaay. However, nothing was done.
We understand the inaction is ascribed to alleged inability to spare any material for
export on account of the heavy domestic demand, but in view of the fact that a number
of sheet and tin plate mills have been shut down for months at a time and that a recent
report of the sheet steel company to the corporation states that orders need to be in-
creased 100 per cent to take up the capacity of the plants, it would appear that the
two explanations should be sought elsewhere and that an inability on the part of the
sheet steel and steel hoop companies to regard the export proposition from the point of
view we have endeavored to elucidate in the preceding remarks is responsible. The
auestion is, however, one that should be considJered as-solved with a view to promoting
le interests of the corporation as a whole and not from a point of view of mdividual
subsidiary companies.
3940 UNITED STATES STEEL COBPOEATION.
Mr. Sharkey remarked that the condition of the sheet steel com-
panj^ referred to existed for a short period only; production could
have been increased probably 50 per cent by modifying prices in this
country, had they desired to do so.
Extract 6. The bureau should be invested with full authority to instruct the various
manufacturing companies through the proper channels to execute such orders as it
may be decided to take, and it is imperative that the operating departments of all the
companies should implicitly follow all instructions as to quality, finish, mode of pack-
ing, and the specifications which accompany or form part of the export orders.
Mr. Farrell stated that while this looks arbitrary he wished it under-
stood that the export department would work through some particu-
lar individual of some constituent company. If the bureau received
permission to sell some tin plate for experimental purposes it is natural
that it would work through proper channels; but the point is, if the
bureau is decided upon to conduct the business, the general manager
of sales or the president of the company would have to outline to the
management the necessity of making goods as specified in the order.
Extract 7. Credits would have to be under the jurisdiction of the export bureau
and not subject to any dictation from the manufacturing companies.
jVIr. Farrell added they always of course investigated the matter
before extending credit.
Extract 8: If, however, the export bureau should be operated as a separate company
or as a department of the United States Steel Corporation, all material should be billed
to the export bureau by the manufacturing companies at the net mill cost, and in
order that the accounts of the export bureau may accurately indicate the profit or
loss resulting from its operations, it should be credited with the profits of the ore, coal,
coke, and transportation of subsidiary companies on the raw material consumed in
manufacturing the material exported .
Mr. Farrell explained that the foregoing is only tentative; that he
was asked to give an opinion and simply expressed his views on the
subject.
Summing up the general features of the report and the discussion,
the chairman said ne assumed, taking into consideration general
conditions, the scarcity of biUets and pig iron, and the large tonnage
of domestic business, which is more than taking up the capacity of
nearly every constituent company, the time is not ripe to recommend
any definite action on export business. There are certain points,
'however, on which he thought all would agree, such as approval of
the plan of exporting no raw material and approval of the plan that
export business shall be continuous.
April 15, 1903.
Twenty-first meeting.
In reference to the reasons why the United States Steel Corporation
cotild not put up warehouses, the first reason given is as foUows:
First, we could not put up warehouses as the United States Steel
Corporation, because this corporation is not an operating or com-
mercial proposition, but is only a financial institution or security-
holding company of the different constituent companies. Therefore,
as we understand it, no commercial business can be transacted in its
name.
i'lAY 20, 1903.
Twenty-second meeting.
(On p. 52.) It was decided to hold the next meeting in the Empire
Building, New York, at 10 a. m., Wednesday, June 17, 1903.
UNITED STATES STEEL COKPOKATION. 3941
Twenty-third meeting.
(There is no twenty-third meeting, but the twenty-fourth meeting,
shown on page 53, was held on June 17, 1903.)
export business.
July 15, 1903.
Twenty-fifth meeting.
The chairman stated that while advices had been sent to the
other members of the desire to discuss this subject at this meeting,
he was hardly prepared himself to report very fidly. He had
requested Mr. Hatfield to see what the bridge coinpany could do abroad,
as well as Mr. Hoffstadt, of the Pressed Steel Car Co. Letters have
also been written to other foreign representatives soliciting full
information as to the prices, general conditions, etc., but results up
to the present time have not been very satisfactory. It has been
ascertained that foreign rails are selling in some cases as low as
£4 to £4 3s.; bars at 1.10 to 1.15 cents f. o. b. maker's mill, with cor-
responding low prices on other commodities.
Mr. Worcester stated that they are doing considerable business
with domestic concerns who export, allowing their export prices to
apply in such cases.
The chairman inquired of Mr. Sharkey whether they are in position
to meet foreign prices. The latter replied that they are away below
cost at which they could produce.
After some discussion, the chairman suggested that the matter
be held off until the August meeting, when it can be taken up as a
special subject.
In the meantime the members can send to Mr. FarreU a list of
material which they want to export, so that he can fully develop what
E rices and conditions it -will be necessary to meet in order to secure
usiness. He stated with reference to sheets and tinplate par-
ticularly that whUe their present costs would hardly permit them to
export, it should be borne in mind that there is a profit to the corpora-
tion not only in the sheet bars entering into their manufacture, but in
the pig iron and ore as well, and he would take the matter up with
the corporation to ascertain whether any concession could be made
on the pig iron and ore which would enable them to supply the sheet-
steel and tinplate companies with sheet bars at such prices that
they could meet foreign competition on the finished product.
This suggestion being agreeable to the other members of the asso-
ciation, the matter was left in this shape, it being understood that
Mr. Farrell would be supplied with all the needful information to
enable him to make a full and comprehensive report at the August
meeting.
export business.
August 14, 1903.
Twenty-sixth meeting (special).
After a general discussion, it was decided that a general selling
agency should be established, in charge of Mr. Farrell, the expense in
connection therewith to be prorated according to the volume of
business done for each company.
3942 UNITED STATES STEEL COBPOKATION.
FOREIGN AGENCIES.
The existing agencies of the various companies in foreign countries
should be consohdated and a single sales office established under a
single executive head wherever necessary, assisted by a carefully
selected staff conversant with the products of each of the companies,
thereby economizing rentals and expense and tending to increase
the efficiency and consequently better results.
All foreign countries throughout the world should be subject to
the jurisdiction of the export bureau, which should -detenmne the
§ rices and terms at whicn they sell and generally supervise and
irect their operations. The bureau should have power to appoint
aU foreign agents and, when necessary or desirable, dispense with
their services and terminate their agencies. It will probably be
necessary to establish agencies similar to those at London and Montreal
at other maportant centers, such as Melbourne and Sydney (Australia),
Cape Town or Johannesburg (South Africa), and Buenos Aires, to be
conducted by employees with a knowledge of the business, preferably
sent from tins country; the advisability of establishing such agencies
to be determined later after the export bureau has closely investigated
the conditions prevailing in the markets referred to, and is in a posi-
tion to judge as to the relative advantage of establishing branch
offices or of continuing to deal through existing connections and
channels.
Agents on commissions would be appointed at all important
consuming centers where business is possible^ utilizing wherever
Sossible the services of present agents whose efficiency has been amply
emonstrated by experience and who are conversant with the entire
line of iron and steel products imported into their markets and who
have an established trade in the various lands.
Financial accounting and invoicing departments.
It will be necessary to estabUsh a department in charge of a treas-
urer, who will attend, to the collection of accounts and the care and
disposal of the proceeds and aU other duties connected therewith,
and, subject to the decision of the export sales manager, pass upon all
credit terms and mode of payment for goods sold by the bureau.
As many of the invoices will have to be made out in foreign lan-
guages, and as shipments will frequently consist of several classes of
material supplied by different subsidiary companies, and in order to
insure that the invoices are properly prepared so as to comply with
foreign requirements, it is essential that all goods should be mvoiced
to the foreign customers by the export bureau, and not by the manu-
facturing companies. It will therefore be necessary that the bureau
should have its own financial, invoicing, and accounting departments.
If it is decided that it is to be operated as a general selling agency of
all the companies, it will probably be necessary to have the accounts
carried on the books of the companies supplying the goods, in which
case the proceeds of each individual transaction would be remitted to
the manufacturing company on receipt.
If, however, the bureau is operated separately, all material shipped
should be billed to the export bureau by the manufacturing companies
at the net mill cost, in order that the profit and loss resulting from the
operations of the export bureau may De accurately determined.
UNITED STATES STEEL OOEPOBATION. 3943
Question was raised as to the method of handUng old contracts for
export, and it was decided that each company should complete its
own. It was also decided that from now on all inquiries for export
shall be turned over to the export bureau.
EXPORT BUSINESS.
It was decided after a full discussion to approve the plan of Mr.
Farrell, it being understood that no raw matenal is to be exported.
export bureau.
August 19, 1903.
Twenty-seventh meeting.
Upon inquiry by Mr. Baackes if it is the intention to give export
business preference over all other tonnage, it was stated that export
orders are hereafter to have preference in time of execution over
everything excepting constituent company business. On further
question if it is the intention that Mr. Farrell shall do business in the
name of each company, there was a general discussion, and it was
-decided that all communications should be signed by Mr. Farrell as
"General manager of sales for export," this title being agreed upon
as the proper one.
The distribution of orders, it was decided, shall be left to the judg-
ment of Mr. Farrell, who will be in possession of such information as
will readily enable him to determiae from which mill the order can be
executed to the best advantage.
With reference to foreign agents, the chairman stated he has notified
all their foreign agencies of the desire to terminate existing agree-
ments, and he has also written to their export managers of sales
indicating the manner in which export busmess wiU be conducted
hereafter. These papers have been turned over to Mr. FarreU.
With reference to the caption "Customs clerk," Mr, Farrell ad-
vised that in a few days he will have a competent man in this position
and will be able to furnish very authentic reports. It is the intention
to keep an absolute record of aU material entering this country and to
see that the proper duty is charged in each and every case. Upon
inquiry by the chairman as to how soon it is expected the tube com-
Eany will be in position to avail itself of the services of the export
ureau, Mr. Worcester rephed that no definite time could be set, as
their export man is at present in South Africa, but it is the intention
to have him return as soon as possible, when matters can be shaped
up in a short time and their export business diverted into the proper
channels.
September 2, 1903.
Twenty-eighth meeting of the general managers of sales associa-
tion was held in the Empire BuUdmg, New York, at 10.30 a. m., Sep-
tember 2, 1903.
There were present: H. P. Bope, chairman, Carnegie Steel Co.;
Edward Worcester, National Tube Co.; George Baker, Illinois Steel
Co.; James L. Sharkey, American Sheet Steel Co.; Frank Dickerson,
American Tinplate Co. ; A. L. Davis, American Bridge Co. of New
York; Frank Baackes, American Steel & Wire Co.; Daniel Coolidge,
Lorain Steel Co.; J. A. FarreU, Export Bureau; W. S. Russell,
United States Steel Corporation; W. B. Dickson, United States Steel
Corporation. Messrs. Gary and Corey were present during part of the
meeting.
3944 UNITED STATES STEEL CORPORATION.
EXPORT BUREAU.
A letter from Mr. Farrell to Mr. Bope on this subject was read,
pointing out several reasons why it would be more advisable to have a
separate company to handle export business than a bureau represent-
ing all the subsidiary companies.
Mr. Worcester stated his idea of the proposition was that a sep-
arate corporation shall be formed to handle all export tonnage,
and he felt this was the only satisfactory manner in which the business
could be conducted. His plan was to authorize prices at which the
export company should sell, and it would be billed at whatever prices
were agreed upon. By adopting this plan it would enable all the sub-
sidiary companies to do business through one source, and it would
give the export company every possible right to do business. They
should also look after their own credits, collections, etc.
Judge Gary said that from a standpoint of expediency and economy
if it was felt" wise to have a separate and independent corporation to
conduct the export business, it could no doubt be arranged. The
corporation could make contracts with each of the subsidiary com-
panies at whatever prices might be agreed upon, and under their
charter sell material for their own account, conducting all transac-
tions with reference to freight, collections, etc. He stated further
that a charter had been obtained several years previous for a some-
what similar proposition, which had been kept alive and would prob-
ably be available, although some changes might have to be made in it.
He expressed the opinion that if there were no objections to doing
business in this way he did not see why the plan proposed could not
be adopted.
Mr. Worcester inquired whether the compensation of the export cor-
portation could be commissions and whether it could be called the
United States Steel Products Export Co. Judge Gary replied affirma-
tively to both questions.
Mr. Worcester then offered a motion that a separate corporation be
formed along the lines indicated and that it be called the United States
Steel Products Export Co., which was duly seconded and carried by
unanimous vote. The question of billing material to the export com-
pany at cost prices was discussed at some length, and while no definite
conclusion was reached it appeared to be the consensus of opinion that
certain limits should be agreed upon which would permit the export
company to go ahead without conferring in each and every case with
the company on whose products it was figuring.
September 16, 1903.
Twenty-ninth meeting.
export bureau.
Question was raised as to whether the export bureau should handle
the trade in the extreme Northwest, and it was the opinion that it
should, because better results will be obtained by handling all export
business through one channel.
NEW products.
It was the consensus of opinion that the Steel Corporation should
ultimately finish all its raw material, but until such time as it is able
UNITED STATES STEEL CORPORATION. 3945
to do SO to the best advantage the lines in which it is at present
engaged should be more fully developed. It was felt that the Car-
negie Co. should manufacture both spikes and track bolts, so as to be
able to supply a full line of accessories with its rails, and it was
resolved, on motion duly made and seconded, to recommend to the
Steel Corporation the building of a plant for this purpose.
October 7, 1903.
Thirtieth meeting.
The thirtieth meeting of the general managers of sales association
was held in the Empire Building, New York, at 10.30 o'clock a. m.
Wednesday, October 7, 1903.
There were present: H. P. Bope, chairman, Carnegie Steel Co.; Ed-
ward Worcester, National Tube Co.; George Baker, Illinois Steel Co.;
James L. Sharkey, American Sheet Steel Co. ; Frank Dickerson, Ameri-
can Tinplate Co.; J. A. Hatfield, American Bridge Co. of New York;
J. H. Taylor, American Steel & Wire Co.; Daniel Coolidge, Lorain
Steel Co.; J. A. Farrell, United States Steel Products Export Co.;
Veryl Preston, United States Steel Corporation; W. S. Russell, United
States Steel Corporation.
UNITED STATES STEEL PRODUCTS EXPORT CO.
Mr. Farrell stated it might be of interest to the members to know
that the charter for the export company has been fully developed and
the company organized, with Messrs. Corey, Gary, Bope, Worcester,
Alurray, and himself as directors. It is expected they will be in a
position to take over all the export business by November 1.
With reference to the expenses, he stated that the matter has been
gone into very thoroughly and the conclusion reached to tax the dif-
ferent companies a commission of 3 per cent. While this is a rather
liberal figure, it is estimated there will be left a considerable surplus,
and the idea is to rebate this surplus to the different companies, based
on the value of their tonnage.
After some discussion, in which all the members expressed their
views on the subject, the following resolution was adopted by unani-
mous vote:
Resolved, That we recommend an allowance of 3 per cent to the
United States Steel Products Export Co. to cover its expense in secur-
ing business. This amount to be paid by each of the subsidiary com-
panies, and any surplus over and above the actual requirements to be
rebated to the different companies, predicated on the value of the
tonnage sold for them.
October 27, 1903.
Thirty-first meeting.
November 17, 1903.
Thirty-second meeting.
CARRYING stocks ON THE PACIFIC COAST AND AT CENTRAL WESTERN
POINTS.
Mr. Baackes stated he has made a very careful study of the situa-
tion in the West, and while they can take care of themselves on wire
and nails in competition with Colorado, their customers have been
3946 UNITED STATES STEEL COEPOKATION.
advised by Colorado that unless their supplies of Avire nails are drawn
from them they will not furnish bars and other products at remuner-
ative prices; in fact they have already advanced galvanized wire
from $3 to $5 per ton and the October price of bars from 2.155 cents
in carloads to 2.30 cents. It is his feelmg that customers should not
be allowed to suffer in this way, and he thought if Carnegie and HU-
nois could look after the bar and like rail end of the business, it would
be a very good thing to do. He further said that our warehouses
could be utihzed for carrying stocks of those commodities and that
the carrying charge would be kept down to the lowest possible mini-
mum.
The chairman stated that so far as the Carnegie Co. is concerned,
he would be very ^d to do everything in his power to bring about
the desired end. With reference to the stock feature, it was sug-
gested that the Carnegie Co. take care of the Pacific coast on account
of their ability to ship around the Horn on a reasonable freight basis,
and that Illinois take care of the Central West, each carrying a stock
of 5,000 to 6,000, distributed among the various warehouses, and it
was agreed that this matter will be taken up at once.
December 2, 1903.
Thirty-third meeting.
The thirty-third meeting of the General Managers of Sales Associa-
tion was held in the Empire Building, New York, at 10.30 a. m.,
Wednesday, December 2, 1903.
There were present: H. P. Bope, chairman, Carnegie Steel Co.; Ed-
ward Worcester, National Tube Co.; George Baker, Illinois Steel Co.;
James L. Sharkey, American Sheet Steel Co.; A. L. Davis, American
Bridge Co. of New York; Frank Baackes, American Steel & Wire Co.;
J. A. FarreU, United States Steel Products Export Co. ; A. C. Dinkey,
Carnegie Steel Co.
EXPORT BUSINESS.
Question was raised with regard to prices made to domestic manu-
facturers for material, which will be fabricated and then exported.
Mr. Farrell stated he has a man whose duty it is to keep a careful
check on aU material shipped out of the country, and he wiU be in
position at any time to ascertain whether material sold to domestic
customers for this purpose is actually exported, and will be very glad
to render any assistance to the other companies that he can.
December 16, 1903.
Thirty-fourth meeting.
January 7, 1904.
Thirty-fifth meeting.
record of export material sold to domestic manufacturers.
January 20, 1904.
Thirty-sixth meetmg.
After the general discussion of this matter, it was recommended
that the export company be furnished full data by all companies on
material sold to domestic customers to be exported later, so that it
will be enabled to keep a full record in this respect, which it was
agreed will be done.
u2srited states steel ooepoeation. 3947
cahbying stocks of bars at denver and salt lake city.
Febeuaey 17, 1904.
Thirty-seventh meeting.
Mr. Baackes reported uiat he and Mr. Baker have investigated the
bar situation in the Middle West, and it developed the consumption
amounts to about 50,000 tons per year. Colorado is now making very
low prices on this business, and if we are to secure it we will have to
meet their price. It is recommended that this be done, carrying, say,
1,000 tons at Denver and 500 tons in Salt Lake City in the warehouses
and in the name of the steel and wire company.
A very full discussion followed, each member expressing his views ;
and the general opinion was that the plan be approved and carried
out, and it was so recorded as the sense of the meetmg. This tonnage
will be furnished by Illinois.
Thirty-eighth meeting.
EXPORT COMPANY.
March 3, 1904.
March 23, 1904.
Thirty-ninth meeting.
Mr. FarreU announced that, beginning March 1 , the export company's
charge to the constituent companies for handling their export business
will be 2 per cent, instead of 3 per cent, it having been found this will
be sufficient under present conditions, although later it may be neces-
sary to go back to the old basis.
April 1, 1904.
Fortieth meeting.
April 20, 1904.
Forty-first meeting.
May 4, 1904.
Forty-second meeting.
May 18, 1904.
Forty-third meeting.
new importation.
June 1, 1904.
Forty-fourth meeting.
The chairman remarked there occasionally comes to his notice in a
roundabout way some new plant which is in competition with one or
more of the constituent companies, and suggested that aU the mem-
bers notify their representatives that when any new competition of
the lines manufactured within the corporation is found, tnis should
be immediately reported to their home office; and if this data is sent
to him, he will see that it is placed in the hands of the other general
managers of sales.
June 15, 1904.
Forty-fifth meeting.
31572— No. 53, pt. 2—12 14
3948 united states steel cobpoeatiok.
handling of export business.
July 6, 1904.
Forty-sixth meeting.
Mr. Baker inquired whether, on inquiries from domestic manufac-
turers covering material for export, the agent securing the same should
correspond direct with the export company or with his general man-
ager of sales. Sonde discussion was had, and the conclusion reached
that where material will be shipped directly out of the country all
correspondence should be conducted directly with the export com-
pany, but where the material is to be reworked, then the matter
should be referred to the finishing company interested.
differential for open-hearth steel.
July 20, 1904.
Forty-seventh meeting.
Mr. Dickson explained the principal reason for bringing up this
subject was the large amount of non-Bessemer ore being mined in
comparison with the amount used, which made it necessary to push
the sale of open-hearth steel as against Bessemer.
August 24, 1904.
Forty-eighth meeting.
Pig iron is selling at |12 and structural material and plates, for
instance, at $32, wmch gives a larger spread than customers think is
necessary. It is felt in some directions that a cut in prices will have
to be made before the situation is entirely straightened out.
September 21, 1904.
Forty-ninth meeting.
There were present the general sales managers of various com-
panies. Messrs. Palmer, of the steel and wire company; Topping, of
the sheet and tin plate company; and Schiller, of the tube company,
were also present, as were a number of the purchasing agents.
CONSTITUENT COMPANY PURCHASES.
The chairman stated the purpose of calUng a joint meeting with the
purchasing agents was to discuss principally the question of con-
stituent company purchases. There seems to be a divergence of
opinion between th^ purchasing agents themselves as to the proper
course to pursue, and in some cases business has been placed with
outside concerns which should have been kept within the corporation.
It is not so much a question of an outside company making a lower
price as it is the loss to the corporation. He caUea attention to the
resolution adopted several years ago making it practically compul-
sory to purchase all supplies within the corporation where this is pos-
sible, the understanding being that in all cases the lowest price would
be made, regardless of quantity. As a matter of fact, it was expected
that under this ruling outside quotation would not be solicited where
the material could be furnished within the corporation, and it is gen-
erally understood by outside concerns that they will not secure any
orders for such materials.
UNITED STATES STEEL OOEPOEATION. 3949
The purchasing agents expressed themselves as concurring with the
chairman's views that all material should be purchased within the
corporation where possible, and stated they would endeavor to do this
in every case.
A very general discussion followed, during which all the gentlemen
present expressed their views, and finally the following resolutions
was offered, and adopted by unanimous vote:
First. AH materials made by the corporation must be purchased
within the corporation.
Second. Prices must be the lowest named to the most favored cus-
tomer, regardless of quantity.
Third. No quotation shall be asked on such material from outside
parties.
Fourth. If special cases arise, they must be referred to the two
presidents interested, and only placed outside by mutual agreement
of those two officials.
Fifth. The seUing company to acknowledge receipt of all orders,
stating the prices at which same have been entered and, as far as
possible, the time of shipment.
Sixth. A copy of this resolution shall be sent to each president,
general manager of sales, and purchasing agent of the constituent
companies. In order to obtain the benefit of carload rates in the
northwestern district, it was suggested that a small stock be carried
there for current needs.
Messrs. Topping, Palmer, Schiller, and the purchasing agents
■ withdrew from the meeting.
October 19, 1904.
Fiftieth meeting.
The market reports indicated a distinct improvement in general
conditions since the last meeting, except in the case of the bridge
company, with whom competition is extremely aggressive, and the
majority of the tonnage is oeing lost at $4 to $8 per ton below their
bid prices.
November 16, 1904.
Fifty-first meeting.
Announcements were made of an advance of $1.50 per gross ton
in the price of billets and sheet bars, effective November 15, $3 per
ton in tin plate, $2 per ton in black sheets, $3 per ton in galvanized
sheets, $1 per ton in heavy sheets and specialties, and $2 per ton in
in wire products.
EXPORT sales.
December 16, 1904.
Fifty-second meeting.
The chairman called attention to the necessity of the export company
keeping in very close touch with the mills, especially under existing
conditions, stating that in several instances recently this has not
been done. It is not desired to restrict the export company iu making
sales, but it is felt that with the present heavy demand from domestic
sources the best results can only be obtained by keeping in very
close touch with each company.
Mr. FarreU responded that he has cautioned his force along this
line, and will see that the chairman's suggestion is closely followed.
3950 UNITED STATES STEEL COEPOBATION.
This led to a very general discussion as to the desirability of
export business at the present time, Mr. Farrell stating his instruc-
tions were to continue taking tonnage, but it will be their aim in the
immediate future at least to simply follow production. In this
connection, Mr. Farrell called attention to the discussion at the
previous meetings as to what constitutes an export order. He sug-
gested, in view of the fact that the export company will make every effort
to prevent an increase in their cost of doing busiuess, which wiU be
difficult when taken into consideration with the curtailment of the
sales that each constituent company usually turn over to them in
business going out of the country which has been negotiated for
direct, ^ter some discussion it was agreed that while an absolute
ruling could not be laid down, the export company should ordinarily
have the benefit to be derived in such cases.
January 18, 1904.
Fifty-third meeting.
The wire company reported an advance of $1 per ton
Fifty-fourth meeting.
February 23, 1905.
March 15, 1905.
Fifty-fifth meeting.
Announcement was made of an advance of $2 per ton ia steel
bars and kindred products effective February 28.
April 19, 1905.
Fifty-sixth meeting.
An advance of $1 per ton in pipe prices was announced.
May 17, 1905.
Fifty-seventh meeting.
June 14, 1905.
Fifty-eighth meeting.
June 30, 1905.
Special meeting.
Discussion of sales poUcy.
July 19, 1905.
Fifty-ninth meeting.
August 16, 1905.
Sixtieth meeting.
September 20, 1905.
Sixty-first meeting.
general selling company.
October 18, 1905.
Sixty-second meeting.
Upon inquiry by Mr. Farrell if there has been a report as to the
legal status of a general selling company, the chairman replied that
Judge Gary has the matter up and the attorneys are now preparing
a scheme for such a company. One thing to be considered is whether
UNTTBD STATES STEEL, OOBPORATION. 3951
we will be able to do business in every State without the necessity
of having to pay a heavy fee. Mr. MiicVeagh is now at work on a
plan for a semng company to enable us to do business any place on
the payment of a small fee.
November 15, 1905.
Sixty-third meeting.
December 20, 1905.
Sixty-fourth meeting.
Januakt 17, 1906.
Sixty-fifth meeting.
export business.
February 21, 1906.
Sixty^-sixth meeting.
Mr. Farrell stated there seems to be a difference of opinion among
some of the constituent companies as to what constitutes export
business, and he thought the matter should be taken up and a ruling
made to govern aU of the companies. Recently some material was
shipped direct from the mill by the tube company that had gone out
of the country, which had not been handled through the export
company, and he thought if this practice continued it will have a
tendency to weaken the export company.
Mr. Downer (National Tube Co.) advised that all inquiries received
from them by people who are recognized exporters are immediately
turned over to the export company, but there are certain domestic
jobbers not recognized as exporters who ship more or less out of
the country in connection with other goods, and to these people they
have been quoting domestic prices direct.
The question or shipping material to the Panama Canal Zone was
also discussed, Mr. FarreU stating that at the time of Secretary
Taft's decision that free trade should rule in the Canal Zone the
matter was gone over and it was thought the export company should
handle the ousiness. They are now handling it for some of the
companies, and find in most cases the Grovemment is putting it on a
competitive basis, although they have been tiyiog to get it on a
domestic basis. He thought it advisable that the export company
handle all this business, especially in view of the fact that they are
constantly sending cai^oes and are obtaining a very satisfactory
freight rate.
After some further discussion on the subject it was unanimously
agreed that the following should be incorporated in the minutes as a
ruling of this association:
"Si material shipped direct from the mill to a point outside the
country shall be turned over to the United States Steel Products
Export Co., no matter where the sale originates, and all inquiries
ahsJl be taken up with Mr. Farrell.'"
March 21, 1906.
8at.ks of raw material.
Sixty-seventh meeting.
Referring to the change of poUcy decided on by the corporation,
that we are not in the future to sell any raw material than that which
we can not use in our own finishing mills, the chairman stated that,
so far as the Carnegie Steel Co. is concerned, they can not at present
3952 UNITED STATES STEEL CORPORATION.
get out of the market because of some long-term oontructs, but
they are limiting their sales of billets and slieet bai-s. They will,
however, be able to pot rid of most of these contracts by January
1, and it is their intention on July 1 to give notice on every contract
they now have, whore such iiotico is required, of their desire to cancel
at the expiration of six months. New facilities put in since making
these contracts have added about 300,000 tons per year to their
finishing capacity, and in addition the constituent companies have
also increased their output, and he docs not believe it will ever again
be necessary- to make such sales of raw material as they have made
in the past.
There was a full discussion of the matter, each member expresaina;
his views, and while it was the consensus of opinion that the ideal
condition would be to use all of the steel produced in theu' own lin-
ishing mills, it was the feeling that the production should always
be at the point where certain good customers who are entirely depen-
dent upon us for their steel supply, and who are not in competition
with any of the finishing lines manufactured by the corporation,
should always be taken care of.
Replying to this view of the matter, the chairman statin! that in
cases lilce the land mentioned it is the intention to supply them as
far as possible without hmiting our own mills, but he referred gen-
erally to making sales among the regular trade.
AnuL IS, 1906.
Sixty-eighth meeting.
Referring to the discussion of sales of raw material at the last
meeting, the chairman stated he could simply report progress. They
are not making any new sales and are getting out of present contracts
as rapidly as possible, but do not anticipate any great change in tliis
direction before the first of the year.
STEEL-BAR INDUSTRY.
(Note. — Agricultural-implement manufacturers.)
The chairman advised that just after the last meeting he was
waited upon by a committee re}>resentiiig the agricultural-implement
manufacturers of the country, wlio stated that (hey could not, afford
to pay 1.50 cents for bars and nu>(>t tlie c()ni])ctit,i(m of tlic Inter-
national Harvester Co., who luid now goiui into all lines the fnrnier
uses (last year tlicy turned out 20,000 wagons; this year (>x|>e(^t to
make 40,000, and 100,000 luixt yciu), and they asked'a price of 1.30
cents. The matter was considered very carefully, and while it wns
decided not to give them the niice asked for, a special price of 1.40
cents was offered for a limited period only to enable them to cover
their reouirements for this year. He thought that not many of
them had taken advantage of tliis ajjecial ])rice, as they have sold only
75,000 to 100,000 tons, but he docs not know what price competitors
have given them nor what tonnage they have taken. While it waa
rather an unusual expedient to reduce the pri(^o to only o\u\ industry,
as was done in this case, they felt it proper to do so" under the cir-
cumstances.
It was announced that an advance of $2 per (on on tin plate had
been put into effect on April it.
May lit, lil06.
Sixty-ninth meeting.
united states steel oorpokation. 3953
legality of contracts.
June 20. 1906.
Seventieth meeting.
The chah'inan remarked he has received advices of the lining of a
concern in one of the Western States recently, who authorized, through
a representative, a contract prohibiting a buyer from purchasing any
of his requirements in their line from any other concern; and it has
been developed in the State of Massachusetts a contract is illegal
wliich states that the buyer shall purchase all of liis rfequirements
from one concern. There seems to be a growing tendency to enact
legislation along these lines, and he only brought the matter up ^^•ith
the idea of suggesting tliat a very careful watcli should be kept by all
of the members, to the end that no contracts should be made that are
in anv waA- illegal.
July IS. 1906.
Seventy-first meeting.
The Steel ^.^c Wire Co. reported an advance of SI per ton since the
last meeting.
August 15, 1906.
Seventy-second meeting.
COMPETITIOX.
September 19, 1906.
Seventy-tlm-d meeting.
Suggestion was made that it will be desirable to have a report care-
fully prepared by each company and distributed among the other
companies showing their competition along every Une, the capacity
of each one. just what they are doing, and any other information
that might be of interest wliich may be obtained. As new compe-
tition is added from time to time, it can be added to this list, and in
this way each company can be informed at all times just what com-
etition is to be met in the different Unes. It was agreed this will
e done as early as practicable.
Advance of SI per ton in wire commodities effective September
IS; advance of S2 per ton in spikes: advance of SI per ton in blue
annealed sheets.
October 17, 1906.
competition.
Seventy-fourth meeting.
Witli regard to the data asked for on competition at the liist meet-
ing, the chairman stated he did not anticipate that any of the mem-
bers wotild be able to furnish a complete list to-day. It is desired,
however, to have the information put into concrete shape as early
as possible and tabulated, then to furnish each member with a copy
and have it kept up to date by montlily reports from the different
companies. It is expected this will take considerable time, but
once done it will be a veiy easy matter to keep it up to date, and he
thought it will not only prove interesting but very valuable, particu-
larly m time of depression. So far as they have gone, it has developed,
for instance, that the corporations have not sufficient fabricating
facilities to take care of the necessary work of this character which
ought to come to them, and this is wfy a considerable lot of building
has been diverted to concrete. This is particularly true in the
I
3954 UNITED STATES STEEL COBPORATION.
West. The Kahn Trussed Steel Co., of Detroit, now have over 200
concrete buildings on their books, and while a good many of these
would not ordinarily take much steel, at the same time they always
req^uire a little, and the aggregate would amount to considerable.
This condition, together with hi^h price of beams to-day, makes it
almost impossible to compete with concrete. They estimate they
they are losing tonnage to-day at the rate of 2 J to 1, due to concrete
construction. The ^^hn people have put in their inquiry for 40,000
tons of bars, and in this one case it means a loss of 100,000 tons of
structural material. It is recognized, however, that concrete has
come to stay in certain forms, and we will have to meet the situation
as best we can.
In response to several questions, the chairman said each company
would be expected to report only the competition in their own lines,
and where one company competes with two or more of the con-
stituent companies each one would be expected to report that com-
pany in the Imes in which they are interested. It is also desired where
a mUl is equipped to make two products — ^for instance, either girder
or tee rails or sheet bars or rails — the capacity of each commodity
be given, so that we wiU be in position to arrive at what our com-
petition in every line can be. It was finally decided that the infor-
mation be prepared as to the name, location, character of equip-
ment proposed and conditions, estimated capacity, actual produc-
tion, and, if possible, condition of order books. It was further
decided that a standard form will be prepared for the monthly
reports from the different companies.
The tube company announced an advance of $2 per ton on mer-
chant goods, effective AprU 12, and the sheet and tin-plate company
announced an advance of $1 per ton on tin plate and $2 per ton on
sheets, to be put into effect this week.
November 21, 1906.
Seventy-fifth meeting.
Advance of $2 per ton on bars was put into effect November 16.
December 19, 1906.
Seventy-sixth meeting.
The bridge company, however, reported their competition is very
keen, and a great deal of tonnage is being lost at prices from $5 to
$11 per ton under their bids, in some cases $2 to $3 per ton under
their cost.
January 16, 1907.
Seventy-seventh meeting.
February 20, 1907.
meetings of managers op sales.
Seventy-eighth meeting.
Referring to the discussion at the last meeting on this subject, the
chairman stated he has gone carefully into this matter and has sent
the following letter to their representative in each center:
If you have not already done so, I desire, tinder instructions from the general
manager of sales association, to have you call all local sales managers togellier for con-
ference at least once a month; make a minute of these meetings and send same to me
promptly. What the general manager of sales would like particularly to get from
UNITED STATES STEEL OOBPOBATION. 8955
the local organizations ia data along the following lines : A full re_port of the market
conditions of each company; a report of collections, in which it should be stated
whether there is a good supply of money; crop conditions; new plants under con-
struction or proposed and new competition expected in every line; a brief statement
as to the condition of competitors; and such oSier matters of interest as occur to you
in connection with your local surroundings. It has been foimd very interesting as
well as helpful by some of the local organizations to have short talks made by the
different representatives and to discuss them, and it is sug|;ested this be done at all
points, and some of the local organizations have also found it very helpful to visit in
a body the plants of customers where this can be done conveniently, in this way
becoming more familiar with the customers' needs.
It was felt by all the members that this letter will accomplish the
results desired, and, furthermore, that it is a very §ood plan to visit
the plants of customers and keep in close touch with their require-
ments. It was suggested that this be followed at all plants where
it can be done, conveniently.
AGKICULTXJRAL-IMPLEMENT PEOPLE.
The feeling was expressed not to quote below market price to
agricultural-implement people.
March 20, 1907.
raw mateklvl.
Seventy-ninth meeting.
Reporting on the raw-material situation, Mr. Bope stated it is
worse to-day than he has ever seen it before and he did not know
where it is going to end. A number of their customers are prac-
tically shut down now for want of steel, and some of them have gone
into the market trying to buy tonnage, but have not so far been very
successful.
It was mentioned in this connection that there had been rumors
of cancellation of orders by the railroads on account of deliveries not
being made promptly, but none of the members have seen any evi-
dence of a cessation in buying from this direction.
Local managers of sales are to have meetings each month.
KAIL AND LAKE SHIPMENTS.
* * * In this connection Mr. Baker mentioned having recently
received from Pittsburgh a letter with regard to delivery of shipments
to plants in and around Chicago, which carry an extra switching
charge, and saying they are not in future to assume this,. but he did
not see how they are going to be able to carry out this ruling. On
shipments from Pittsburgh for delivery to plants ia the Chicago
district located on the St. Paul and Northwestern roads there is a
switching charge over and above what the eastern lines will absorb,
and on shipments from Milwaukee for delivery to the plants not
located on the St. Paul and Northwestern roads, which are the only
lines via which they can ship, there is also a switching charge, and
this charge these railroads will not absorb. On shipments made by
eastern competitors everything that is not taken care of by the rail-
roads is absorbed by the manufacturers themselves, and in order to
meet this competition he thought we wiU have to do the same thing
Mr. Benner stated this notice was sent out by him and was issued
because the question of absorption of switching charge for delivery
3956 UNITED STATES STEEL CORPORATION.
is very much complicated at the present. In the Pittsburgh district
there are a good many customers located on the St. Paul and North-
western roads, and the question now is whether we are going to sell
f. o. b. Chicago or delivered at these plants. It really constitutes an
advance in the freight rate and he felt we should not have to
assume this additional charge. However, if competitors are doing
it, it is possible we will also have to do the same thing, but he would
like to go over each case before any action is taken.
raw material situation.
April 17, 1907.
Eightieth meeting.
The chairman advised this situation is no better, and, if anything,
worse. He is going to send Mr. Siebert out to see if any steel can be
picked up to help out, but it is not expected that any considerable
amount wiU be obtained. If the period between now and July 1
can be tided over in anything like reasonably good shipping, condi-
tions will be probably a little easier, owing to the expiration of certain
contracts at that time, but under present conditions there is no
likelihood of improvements before then.
giving preference to constituent company goods.
May 15, 1907.
Eighty-first meeting.
It was reported that the purchasing agents are not in all cases giv-
ing preference to constituent compames in the purchase of materials,
and after discussion of the matter it was unanimously agreed that the
members should call attention of purchasing agents to the ruling of
the presidents some time ago in this connection, that as far as possible
constituent company goods, irrespective of cost, are to be favored in
all work of whatever character.
giving preference to constituent company goods
June 19, 1907.
Eighty-second meeting.
Further discussion of this matter developed that some of the com-
panies are now absolutely giving preference to constituent company
goods in every case where they can be used. While it is realized
that cases arise occasionally where it is desirable to give consideration
to a concern which buys all of its material within the corporation,
still it is felt that not all the companies are giving this preference to
the fullest extent that is possible. It was suggested that each member
write to his president, stating the matter has been brought up, and
recommending that the attention of all operating officials be called
to it, which was agreed will be done.
SALES OF reexport MATERIAL
The chairman stated it has come to his notice there has been con-
siderable correspondence recently on the subject of prices on reexport
material, and it has developed that in all cases tnis matter is not
being handled in a manner that is entirely satisfactory.
UNITED STATES STEEL COEPOKATION. 3957
After a full discussion of the question, a ruling was made that in
future no reexport prices will be made by any of the constituent com-
panies without first submitting the matter to Mr. Farrell for his
advice, and that the company submitting it will have the right to
appeal to the corporation if Mr. Farrell's judgment does not agree
with their views.
CONTRACTS WITH AGKICTILTURAL IMPLEMENT MANUFACTUEERS.
Inquiry developed that bar contracts with the agricultural imple-
ment manufacturers for this year have all been made at $4 per ton
advance over last year's prices, with the exception of reexport
material.
scale contracts.
July 17, 1907.
Eighty-third meeting.
The subject of scale contracts was discussed at some length, Mr.
Baker statmg they had run into recently one or two cases where the
unusually high price of pig iron has brought the price of billets under
scale contracts higher than they could be purchased in the open mar-
ket, and the same is also true in some cases in finished lines. This
has resulted in some dissatisfaction among the customers so affected,
as well as a loss of some tonnage, as they nave gone outside and pur-
chased at market prices such of their requirements as they could get.
In fact, some people have already gone into the manufacture of their
finished products, claiming they can buy their raw material in the
open market and make them cheaper than they can buy under scale
contracts. He ^thought it would be policy in cases of this kind to
make such concessions in the price without affecting any other pro-
visions of the contract as will put customers on an equal basis with
the market.
The other members advise they are having no trouble whatever
in this respect. Under their scale contracts for finished material
prices can not exceed the market.
It seemed to be the consensus of opinion, especially in view of the
fact that business in finished lines at full market prices is being turned
away to-day, on account of inability to take care of it ; that inasmuch
as customers having scale billet contracts have had the benefit of
prices less than the market when pig iron has been low, no reduction
ought to be made now because conditions are in our favor.
Mr. Dickson suggested that instead of making any general ruling
in this matter, in each particular case where it is felt a reduction
ought to be made a recommendation be made to the corporation in
the form of a letter, stating fully the conditions, and decision will
be promptly given.
GENERAL ADVERTISING BUREAU.
The chairman stated it was his purpose to bring up to-day for gen-
eral discussion the question of the adVisability of establishing a gen-
eral advertising bureau, but in the absence of Mr. Worcester he would
defer it until the next meeting. He said, however, he has thought
that by putting in the hands of one man thoroughly conversant with
the advertising business all the money that is being spent by the
3958 UNITED STATES STEEL COEPOBATION.
various companies to-day we would derive very much more benefit
than we are now getting. He received recently a communication
from a Mr. CahiU along this line, which he referred to Mr. Worcester,
and he has rephed as follows, a copy of which has been sent to eacn
member. He requested that the matter be considered and taken up
at the next meeting.
Mr. H. P. BopE,
First Vice President Carnegie Steel Co., Pittsburgh, Pa.
My Dear Colonel: Advertising. I have ypurs of the 1st inclosing Mr. Cahill's
letter to you of June 21, which I return herewith. It seems to be the policy of the
superior ofBcers of the Steel Corporation to treat the newspapers with whom they come
in contact honestly and liberally, evincing a desire on the part of the corporation to
have the public know the truth and the whole truth about our policies, etc. This has
worked very much to the advantage of the corporation, as evidenced by the friendly
support the corporation has had from such papers as come in contact with our superior
officers. There are other papers, however, scattered throughout this broad land tiiat
have not been so favored and have not come in close enough contact with the Steel
Corporation to be the recipients of any favors either in the shape of news items or paid
advertisements, and in such publications we frequently see the most weird stories
published as to the corporation's methods.
On the other hand the trade throughout the country with the sales departments of
the various subsidiary companies come in contact to the corporation in a superlative
degree. This is because they have come in intimate contact with our methods and
the personnel of the various companies and among the trade.
It has therefore occurred to me, as I stated at recent meetings, that if the newspapers
throughout the country could be brought into a more familiar knowledge of the facts,
publications regarding the corporation throughout the United States would be uni-
formly favorable. The only way that has occurred to me by which this could be ac-
complished is by establishing a general advertising bureau representing all the constit-
uent companies — ^not a majority or one or two, but all. I beheve if such a bureau was
established and the head of the bureau was fully advised as to the wishes of the corpora-
tion, that they could so spread their favors either by money paid for advertising or by
news items furnished , upon which the public could rely, that the result aimed at would
surely be attained. It seems to me the money now being expended for advertising by
the various companies forms a fund large enough so that if handled with the single idea
of getting the best results — not in simply selling goods or bringing before actual buyers
the knowledge of our goods, which we can accomplish in other ways, but by disseminat-
ing proper knowledge of the corporation and its methods — ^would be ample; but even
should it be necessary to largely increase the expense in order that the general reading
public might view us in the same light as those who read the favored papers used by
the corporation and those who come in contact with our managers of sales, the additional
expense it seems to me would be fully justified.
I have not discussed this matter witii our president, so I am not sure that he would
agree with me and neither do I write you this letter with the idea of doing anything
more than giving you my individual view. If it is deemed wise to take the subject up,
I will discuss the matter with my associates and be prepared to represent the Tube's
ideas at any meeting where the subject is to be settled. I am personally, however,
firmly convinced that something of this kind should be done and that a separate bureau
of trained men in this particular line should be charged with the entire responsibility
of the movement and left alone to work out results.
Yours, truly, Edwakd Worcester,
COMPETITION.
First Vice President.
August 21, 1907.
Eighty-fourth meeting.
Progress was reported on the work of preparing data on competi-
tion. Mr. Benner (Carnegie Steel Co.) said they are making a very
complete description of every plant in the country which is in any
way competitive, including capacity, description of all machinery, an(i
even financial condition, but it will take probably until January 1 to
get this all in good shape.
UNITED STATES STEEL. OOEPOBATION. 3959
ADVERTISING BUREAU.
The chairman stated the corporation wishes this body to make any
reconamendation they think proper in this matter, and now that the
question is up he thought we should consider the whole poHcy of
advertising as to whether we are getting the best results from the
advertising we are now doing, not only as regards the general poUcy
of the corporation, but in the technical papers sale results commensu-
rate with the amount of money we are spending, and whether or not
it would seem possible to find some one who has been in touch or can
get in touch with all the newspapers of the country, not necessarily; as
advertising agent, but somebody capable of handling the advertising
of the corporation in such a way that better results might be obtained,
if they can be obtained, by having it all handled through one source.
Mr. Worcester said this subject came up to him through a question
put to him in Chicago as to why it is that our customers are favorable
to us while many of the newspapers of the countrj^ are against us, in
answer to which he stated that the customers are receiving our favors
while the newspapers are only slightly; that newspapers which are
receiving our favors are favorable to us, but it is only in those which
come in personal contact with us that we get an honest statement of
what we are doing. The Iron Trade Review and the Iron Age are
good illustrations in this respect. His feeling for a long time has been
that we should have a bureau of publicity and to this bureau the
constituent companies should send all their advertisements and news
items. It is, of course, a position that would require the greatest
talent, but it is his opinion that we should get the right man for it
and then let him alone, turn over to him the necessary funds ■with such
recommendations as we have to make, and if considered advisable
each company write him a weekly letter giving all the facts that might
remotely mterest the public. He would then always be informed of
what is going on, and could use the information as thought best.
It is not his idea that we should try to bribe any man or publication
or do anything of this hature; simply have a headquarters where
representatives of the newspapers and periodicals could go for news
items and from which all advertisements could be placed. Through
this source they would get the truth under all circumstances, and in tms
way he thought we could always get an honest statement of the deal-
ings of the corporation and its constituent companies in the papers.
He further believes the individual companies under such an arrange-
ment would receive at least as much benefit from their advertisements
as is bejng done to-day, and in addition the benefit to the corporation
itself would be vastly greater.
Inquiry by the president developed that approximately $140,000
per year is being expended by the various companies in direct adver-
tising as follows:
Steel and wire $75, 000
Sheet and tin plate 20, 000
Carnegie 10, 000
Tube 15, 000
Lorain 3, 000
Bridge 15, 000
A very full discussion of the matter developed that a majority of
the members are of the opinion that much better results would be
accomplished by a consolidation of this expenditure and the estab-
3960 UNITED STATES STEEL COKPOKATION.
lishment of an advertising bureau, the head of which eventually
could be made the spokesman of the corporation, if thought desirable,
in matters pertaining to general pohcy or such other subjects as the
corporation might tmnk it wise to make public.
The chairman was requested to lay the matter before the corpora-
tion for consideration, at the same time stating that Mr. Farrell and
Mr. Davis dissented from the opinion of the remainder of the members.
September 18, 1907.
Eighty-fifth meeting.
The eighty-fifth meeting of the general managers of Sales' Associa-
tion was neld in the Empire Building, New York, at 11 o'clock a. m.,
Wednesday, September 18, 1907.
There were present: H. P. Bope (chairman), Carnegie Steel Co.;
S. A. Benner, Carnegie Steel Co. ; Frank Naackes, American Steel &
Wire Co.; E. W. Pargny, American Sheet & Tin Plate Co.; Frank
Dickerson, American Sheet & Tin Plate Co.; George Baker, Illinois
Steel Co.; A. W. Downer, National Tube Co.; J. A. Hatfield, American
Bridge Co. of New York; Daniel Coolidge, Lorain Steel Co. ; J. A. Far-
rell, United States Steel Products Export Co.; W. E. Corey, president
of the corporation, and Mr. A. C. Dinkey, president of the Carnegie
Steel Co., were also present during a part of the meeting.
STEEL SHAFTING FOB EXPORT.
Mr. Farrell advised that Jones & Laughlin are increasing their
exports of steel shafting very largely, the figures which he has obtained
sho\ving they are running now about 16,000 tons per year and have
estabhshed a warehouse on the Manchester Ship Canal, in which they
are carrying a stock of about 5,000 tons. The export company sells
a little at the present for the Steel & Wire Co., but can not go very
far because the range of sizes is limited. The Union Drawn Steel Co.,
who are customers of the Carnegie Steel Co. to the extent of 35,000
or 40,000 tons of bars per year, formerly did a shafting business in
foreign cargoes amountmg to 5,000 or 6,000 tons per year, but now
claim they can not compete with Jones & Laughlin on the present basis
of bars and they have had to get out of the foreign business entirely.
Unless one of the constituent companies is in a position to take a
share of this business, he thought there is some credit in the conten-
tion of the Union Drawn Steel people that they ought to be given a
price that will enable them to compete with Jones & Laughlin. The
ruling price on drawn shafting at present is about 1.80 cents, and it
is not possible for the Union Drawn people to meet this on a 1.50 cent
price for bars. The withdrawal of the Union Drawn people from
foreign markets on shafting has hurt the export company to some
extent on bars.
Mr. Corey stated he did not favor making any concession to the
LTnion Drawn people, as to do so would only take tonnage away from
Jones & Laughlin and make their competition that much more serious
in this country. If we were doing business ourselves he would be
agreeable to such arrangements as would insure taking at least a part
or it, but to make a lower price to a consumer who is not only manu-
facturing for export but domestic use as well would undoubtedly react
upon us by forcing the price down here and abroad also. It is his
desire that the prices of both semifinished and finished material shall
be maintained if at all possible.
united states steel coepoeation. 3961
October 23, 1907.
advertising bureau.
Eighty-sixth meeting.
Mr. Corey stated that unless some better argument could be advanced
than has heretofore been put up he would not consider the matter
at all. We advertise now in several trades papers and he would be
ranch opposed to adding another man to look after this work. In
his opinion nothing could be gained by having an arrangement of the
kind proposed, and so far as public sentiment is concerned, he believed
the best policy would be to let it run its course.
CONSUMPTION OF PRODUCTS OF CONSTITUENT COMPANIES IN EACH
STATE.
This data — i. e., consumption of Carnegie and Illinois products in
various States — has been very valuable when they have wanted to
make a special drag for certain mills, and it has also been valuable
in advising the corporation regarding the location of new plants.
Eighty-seventh meeting.
Eighty-eighth meeting.
PURCHASES.
November 20, 1907.
December 18, 1907
January 15, 1908.
Eighty-ninth meeting.
In connection with the decision reached by this body that for the
present at least prices are to be strictly maintained, Mr. Baackes
stated he beheves the purchasing agents should do all they can to
support this policy. In other words, he does not think it right, in
view of the stand we have taken, for the purchasing agents to make
unusual efforts to have reduction made m prices of material they
may want to purchase. He has had several expressions from the trade
to this effect, recently.
Mr. Corey replied he thought the argument a very good one, and
he would take up the question, and if considered necessary he will
have a special meeting of the purchasing agents called and have the
matter gone into thoroughly.
February 19, 1908.
basing points.
Ninetieth meeting.
The chairman stated that the question has been raised with regard
to changing the present arrangement of having Pittsburgh the basing
point for sheet bars, making it Bellaire, Youngstown, or other points
where mills makiiig this commodity are located, the argument
advanced being that it is a discrimination against mills in the valley
to continue this practice.
It has recently come to his notice that the same question has been
raised by some of Tennessee's trade in the southern territory, a
number of customers through the agitation of the question by one
particular concern, having taken the ground that when Tennessee
was in position to do business they expected to be given a certain
3962 UNITED STATES STEEL COBPORATION.
amount of protection against northern concerns and that it is felt
it is a hardship to be compelled to accept Pittsburgh as the basing
point and pay the Pittsburgh freight to their plants.
Speaking generally, he thought that any action taken in a matter
of this kind under present circumstances would tend to have a bad
effect in that it might result in many questions of a similar nature
being raised and in any event he thought the matter should be given
careful consideration as to the effect in other directions before any
action is taken.
Mr. Burr explained that Birmingham has been for years the basing
point for pig iron, but that they had been selling finished materi^
on the Pittsburgh basis and adding the Pittsburgh freight rate. The
present agitation was started by a concern in ESioxville, Tenn., who
sent a letter to every buyer of plates in the South, asking them to
stop dealing with the Tennessee, until Birmingham was made the
basing point of this commodity. The argument advanced is that
based on pig iron, finished material can be made of less cost in the
South and that the customer there should have the benefit of this.
They say they must have lower prices to enable them to compete
with northern manufacturers. And it is true that very little of the
material manufactured in the southern territory is used there, the
larger proportion being shipped to competitive markets.
A fml discussion of the matter followed developing the opinion
was unanimous that no changes of this character should be made at
this time and for the present at least Tennessee should continue the
policy they have been working under.
Advance in bar iron 1.50 cents.
March 18, 1908.
Ninety-first meeting.
The meeting adjourned to meet in Mr. Corey's office at 2.15 p. m.,
to consider the advisability of giving further advertisements to the
trade journals. At this meeting there were present: H. P. Bope
(chairman), Judge E. H. Gary, W. B. Dickson, W. B. Schiller,
William P. Palmer, Frank Baackes, E. W. Pargiry, Frank Dickerson,
George Baker, Daniel Coolidge, S. A. Benner, J. A. Hatfield, J. A.
Farrell.
Reports were admitted showing the following amounts were now
being expended in advertising in the various publications:
Carnegie Steel Co : $2, 740. 00
Steel and wire 50, 000. 00
Sheet and tinplate 4, 205. 46
National tube 7, 577. 60
American bridge 12, 795. 10
Loia,in Steel Co 650. 00
Tennessee 2, 859. 20
Export Co 803. 00
Mr. Baker stated Illinois has not advertised in any way for 10 or
12 years.
Mr. Baackes stated that in addition to the amount mentioned
above the Steel & Wire Co. is expending probably $70,000 per year
in circulars which are sent direct to the trade.
Mr. Dickson stated that representatives of several of the peri-
odicals have been after the corporation principally with a view of
UNITED STATES STEEL COEPOEATION. 3963
securing an advertisement from the Carnegie Co., covering splice bars,
Duquesne joints, steel ties, and other specialties, and his idea in hav-
ing the matter brought up was to see if some policy could not be
adopted along this line- that would work to the advantage of aU. He
asked Mr. Schiller for an expression of his opinion on the general
proposition of advertising in periodicals.
Mr. SchiUer replied that for some time the Tibe Co. did very little
advertising, but they felt they had not been doing enough, and this
year increased quite considerably their present contracts covering
papers, weekly, semimonthly, and monthly issues. Aside from
the desire to keep their specialties before the public they thought it
wise to give some support to these papers as a matter of policy.
After a general discussion of the matter. Judge Gary suggested
that the data submitted be compiled when it will be decided what
issues are considered the most desirable to patronize and the various
companies will then be asked to utilize them.
It was further agreed that all matters of this kind will hereafter
be referred to the general managers of Sales Association for recom-
mendation as they are in closer touch with the necessities in this
direction than any other body.
April 5, 1908.
ADVEETISING.
Ninety-second meeting.
Mr. Dickson stated that after going over the matter carefully,
the conclusion has been reached that no hard and fast rule can be
laid down, but each case that comes up wiU have to be treated with
the idea of having the least possible expenditure. The only action
taken since the last meeting has been to write the chairman suggesting
that the Manufacturers' Eecord of Baltimore, and the Eailroad
Gazette be considered first, because they have been the most in-
sistent for recognition and, secondly, because they are both high-class
publications. He also made suggestion that if possible, provided an
arrangement is made with the publications mentioned, it be done in
the way of reading matter, so that it will not appear too broadly as
an advertisement, which would probably result in demands from
other- sources not favored.
The discussion following developed the Manufacturers' Record
is now being patronized by the Bridge and Tube companies as well as
by Tennessee, but it seems to be the opinion that it would be very
difficult to in every case advertise in the shape of reading matter,
because of the fact that this would have to he changed very fre-
quently. This, however, would be left in the hands of the various
companies to decide themselves.
DATA ON COMPETITION.
Inquiry by Mr. Farrell developed that the data it was suggested
some time ago be prepared showing capacity, etc., of competitive
giants has been completed with the exception of the Steel & Wire
0., and in the absence of Mr. Baackes it could not be told how far
they are along.
31572— No. 53, pt. 2—12 15
3964 united states steel cokpokation.
May 19, 1908.
advertising.
Ninety-third meeting.
On this subject Mr. Dickson stated he has under consideration
now, for recommendation, the American Eailway Eeview of Chicago,
who had been very insistent for the patronage of the various con-
stituent companies, and it will be decided within a short time just
what can be done.
June 24, 1908.
data on competition.
Ninety-fourth meeting.
The chairman stated reports have now been received from all the
companies showing their competition, but are not in shape to tabu-
late along the lines followed by the Carnegie Steel Co., and really
give nothing more than the information shown in the Iron and Steel
Directory. Their own people have gone into this in a very elabo-
rate way, showing the products of the different plants, percentage of
production for sale, information as to financial responsibility, and
everv thing of this kind ; and if any of the others desire to establish a
similar system they will be very glad to give them any assistance
they can. As a matter of fact, they have covered some of the com-
petition of the other companies but have not obtained any data as to
special competitors.
After some discussion it was suggested that a sample of the data
compiled by the Carnegie Company be sent to each of the members
to see if the other companies can arrange to prepare their informa-
tion along the same lines.
Judge Gary and Mr. George W. Perkins came into the meeting at
this point.
BASING POINTS.
Mr. Burr stated the southern manufacturers held a meeting in
Birmingham on June 12, and discussed the question of the base
price for bar iron and bar steel very thoroughly and also called atten-
tion to the base price for foundry iron at Birmingham and Pittsburgh,
freight rates to the various points, and to the prices charged in the
South for the various lines. He read a clipping from the Birming-
ham News, dated June 13, commenting upon this meeting, the gist
of which is that tlie southern manufacturers are being discriminated
against.
There was some discussion of the matter, Mr. Burr stating he
believes there should be some differential made as against the Pitts-
burgh base in favor of southern manufacturers. Although they have
always tried to maintain the Pittsburgh base, it has been customary
in the past to give a concession equivalent to $1 per ton as compared
with this base; but with the competition now confronting from the
bar-iron people and on plates particularly from Portsmouth, this is
not sufficient to control the business. He believes there should be a
differential on plates, bars, small angles, and such other material as
is used by small plow, wagon, and car plants. These people use
UNITED STATES STEEL OOEPORATION. 3965
probably 100,000 tons per year; and, while it is true the capacity of
their present Bessemer material is only about 50,000 tons per year,
they do not feel they could dispose of this under the conditions now
obtaining. He agrees with the southern manufacturers that it can
not be expected to build up industries in the South if the Pittsburgh
base is to be maintained; and he is of the further opinion that if
Birmingham could be made a basing point, so as to give the southern
manufacturer the advantage to which he is entitled, a steel power
plant would be started there immediately.
Judge Gary stated the agitation of this question by these people
has undoubtedly been started as a result of their financial resources,
but he suggested the matter be gone into carefully from the stand-
point of the results to ourselves and that it then be given full con-
sideration, adding, he believes, it will eventually be tliought advis-
able to make both Chicago and Birmingham basing points.
JxjLY 15, 1908.
Ninety-fifth meeting.
August 19, 1908.
data on competition.
Ninety-sixth meeting.
Agreeablv to the understanding reached at the last meeting,
copies of the forms used by the Carnegie Tube and Tinplate and
Toimessee Companies were presented and distributed among the
members. After some discussion it seemed to be the consensus of
opinion that future efforts in this direction should be confined to
customers who buy direct, particularly the manufacturing trade, and
no special attention should be given to the trade supplied by the
jobber.
ADVISABILITY OF MAKING BIRMINGHAM A BASING POINT IN FINISHED
LINES.
September 16, 1908.
Ninety-seventh meeting.
The chairman stated that Mr. Corey desired to have brought up
at this meeting for discussion the question of making Birmingham
a basing point for products of their Bessemer material, which he
understands takes in plates, shapes, and bars; and he exhibited a
map showing the dividing line between Birmingham and Pitts-
burgh districts in the matter of freight rates. There is considerable
agitation of this question in the South at the present, and it is desired
that the matter snail be gone into very thoroughly.
At this point Mr. Corey came into the meeting.
A long discussion followed, developing that Tennessee has not
been particularly aggressive in pushing the sale of their products,
and miile a very considerable part of the business has been taken
at the Pittsburgh basis with freight added to destination, they have
not confined themselves strictly to this basis on account of being in
competition with eastern mills at such points as Chattanooga and
Nashville. As a matter of fact, however, the business of certain
large users in the South, such as the plow and wagon makers, could
not be secured by them if the Pittsburgh base was adhered to. This
3966 UNITED STATES STEEL CORPORATION.
has been their policy for years, and so far as they are concerned it has
been a satisfactory one, as it has resulted, until the last depression
started, in keeping their mill practically fuU.
Mr. Corey said there is no doubt some justice in the contention of
the southern people not to be required to pay the Pittsburgh base
price plus the Pflttsburgh freight rate, and at some later date it
may be thought advisable to make Birmingham a basing point, but
under the conditions obtaining at the present he thought this was
not warranted.
November 20, 1908.
reporting condition of competitors.
Ninety-ninth meeting.
Mr. Dickson mentioned that, at a meeting of the presidents last
week, when Mr. Corey asked as to the condition of competitors, only
general remarks were made, and this resulted in the suggestion that
arrangements be made to give to the corporation at stated periods
information showing what percentage of their capacity the various
competitors of the constituent companies have in operation. It
will not be difficult, of course, about what the large competitors are
doing, but with so many smaU ones now scattered all over the country
(and there is no question but that they are increasing their facilities),
it is desirable that we keep in much closer touch with this matter
than heretofore. He inquired if it would be practicable for the
members to furnish their president regularly, weekly or semimonthly,
a report showing the names of all competitors and the percentage of
capacity in operation at the time it is made, these reports to be
transmitted to Mr. Corey.
Discussion brought out it is believed this information can be fur-
nished, though some thought not oftener than once a month, but action
was deferred until the next meeting, so that everybody would have
have an opportunity to look into the matter.
December 16, 1908.
competition.
One hundredth meeting.
Mr. Hatfield advised he has had occasion to make a careful canvass
©f their competition and finds that while in 1901 the rated capacity
of the bridge cornpany was 700,000 tons per year as against 620,000
tons for competitors, at present the rated capacity of competing
structural shapes and bridge shapes is 1,750,000 tons per year as
against the bndge company's rated capacity of 708,000 tons.
CONDITION OF COMPETITORS.
Referring to the request of Mr. Dickson at the last meeting that
the members look into the advisabihty of giving their presidents at
stated periods reports showing condition of competitors, the con-
sensus of opinion was that reliable reports of this character could not
be furnished oftener than once a month. Mr. Dickson stated this
would be satisfactory and suggested that the first report be made
as of January 1, but stated that the information is not of sufficient
importance to involve the expenditure of additional money in obtain-
ing it.
tinited states steel, oobpobation. 3967
June 17, 1909.
advertising.
Pne hundred and seventh meeting.
Referring to. the question of advertising, Mr. Dickson stated that
up to this time the placing of contracts has been entirely in his hands,
but he though it would be advisable from now on to have this handled
by a committee appointed by this body. Then every proposed con-
tract would have to be referred to this committee to be presented
to the association from time to time, and in this way members would
be kept posted at all times as to what is being done in this direction
and it would simplify matters a great deal While this referred
particularly to new propositions, he suggested that all renewals be
brought up where there is time to do so.
It was tne sentiment of the meeting that while advertising brings
practically no returns, except perhaps in the case of specialties, it
would be policy to continue as we have been doing and it was thought
wise to handle this matter through this body as suggested, but appoint-
ment of the committee was deferred until the next meeting.
July 21, 1909.
advertising.
One hundred and eighth meeting.
Referring to the request of American Engineer and Railroad Journal
for an advertisement, discussion developed that these people only
have a circulation of about 3,900, and the distribution is very largely
among motive-power people who have nothing to do with buying,
and it was the general opinion that the contract should not be made
with them.
It was suggested in this connection that each company furnish a
complete list of advertising now in force, showing name of paper,
how often issued, space contracted for, cost per year and when pay-
able, date of contract and date of expiration, and this data will be
compiled for the next meeting, when the subject will be gone into fully.
Mr. Andrews stated they have been figuring on using the Electrical
World to advertise electrical sheets, their people believing this to
be the best advertising medium for this commodity in the country.
This is a weekly publication, and what they have in mind would
require only about a page, which would amount to about $600 a year.
He was authorized to make this contract.
Septembeb 15, 1909.
advertising.
One hundred and tenth meeting.
Discussion of this subject brought out, in addition to the expendi-
tures reported at the last meeting, the steel and wire company is
now spending in the neighborhood of $50,000 to $60,000 per year for
advertising their agricultural goods, particularly fence, m the small
farm journals all over the country, Mr. Baackes stating he thought
the idea was to report only the trade papers.
It was the general opinion that expenses incurred in the prepara-
tion of circulars relative to specialities and expenses of getting out
handbooks should not come under this head.
3968- rxiTED states steel coepokation.
Discussion as to the v^lue of journal advertising done at present
developed the opinion that while this is thought good policy, there is
little benefit from it in the direction of helping sales.
The conclusion reached was that the advertisements as they stand
to-day have been carefully placed and should be continued so far as the
papers are concerned; further, that any increase in expenditures in
this direction must come before this body for approval, excepting
small expenses, such, for instance, as the placing of an advertisement
in a program of some local organization.
November 17, 1909.
One hundred and twelfth meeting.
The chairman reported that a re.quest had been received by liim
from the Railway and Locomotive Engineering Journal for an adver-
tisement which stated they have a larger issue than any of the
other railroad trade journals, about 16,000 copies per month. The
principal owner and editor in chief of this paper is Mr. Angus Sinclair.
While their rates are not exorbitant, being $25, $30, and $57 for one-
third, one-half, and one full page, respectively, per issue for yearly
contract, he can see no reason at present for increasing their adver-
tising. It was decided to notify the paper accordingly.
Mr. Hatfield advised that while their contract with "the Iron Age
does not expire until the middle of next year, owing to some changes
in the personnel of the paper and some proposed changes in pohcy
after January 1 sp'^fial rates will be established and all contracts
made after that time will be upon a new basis of rates. The bridge
company to-day buys al)Out two-thirds of the present card rates, and
by renewing now for a period of five years from date of expiration of
present contrart, it ^^-ill be possible to make tlie same arrangement,
and he thought they will be justified in doing tliis. He was author-
ized to do so. In this connection Mr. Worcester stated he thought we
should consider the question whether it is to our interest to have the
Iron Age continue to quote absolutely wholesale prices. In his opin-
ion this has been a detriment to manufacture for many years, ana so
far as their fines are concerned he lias for a long time been trying to
have it corrected without making any headway at all, but now that
Mr. Wilfiams has retired it may be possible to have the policy changed.
It is a paper for the benefit or the retail trade and not for the manu-
facturer, and it seems to Mm it would be much better for them to
quote actual jobbers' prices in the principal sections rather than the
wholesale prices, and to j^et these prices from the jobbers themselves.
As a matter of fact they have found it exceedingly embarrassing at
times because of the pubhcation of wholesale prices. Since the retire-
ment of Mr. Williams he lias had up the question with a view to learn-
ing if their pohcy could be changed to one more in harmony with
present selfing methods, and from the information received he beheves
they would lie agreeable to this, and that any proposition of the kind
fi'om this body will have very friendly consideration.
It was suggested that the ecfitor of the paper be asked to meet with
this body for a short time at the next meeting to go over the matter,
but Mr. Worcester said lie thought more headway would iDe made if
we agree first what we want to do, and he suggested that the ques-
tion be carefully considered and brought up for cUscussion at the next
meeting, which was as^reed to.
united states steel coepoeation. 3969
advertising.
December 15, 1900.
One hundred and thirteenth meeting.
Refemng to the discussion at the last meeting with regard to the
advisability of having the trade papers quote jobbers' instead of
manufacturers' prices, the chairman said that as in their own lines
there is only one price to the trade (they insist upoa the jobber selhng
at the market price at all times), the question is of interest only to
the sheet and tin plate, wire, and tube companies.
Mr. Kennedy advised he went over the subject with Mr. Worcester
yesterday, and he is still of the opinion that it would be much better
to have the trade papers quote only the jobbers' prices in the various
centers rather than the wholesale prices, for this undoubtedly causes
dissatisfaction. He beheves it willbe possible to induce the papers to
agree to do this, particularly the Iron Age and the Iron Trade Review,
at least so far as tubular products are concerned, and he would hke
to go ahead with this in view. If, however, it is thought it can be
better handled by a committee of those interested, he is perfectly
agreeable to this.
Mr. Baackes stated that for practically 20 years he has been trying
to have the various trade papers quote the retail prices on wire prod-
ucts, but without success, and he does not beheve it will be possible
to acGomphsh anything in this direction. While the Iron Age and
the Iron Trade Review might be persuaded to do it, there are prob-
ably 75 or 100 other trade papers which would not agree, and therefore
he could not see that any good will result.
It was the opinion, however, that there is no objection to Mr.
Worcester making an effort in this direction.
In this connection the question was raised as to the advisabihty of
representatives of the different companies connecting themselves with
local advertising associations, comprising various lines of business,
including people who have advertising to sell.
Discussion developed the consensus of opinion that wliile there can
be no objection to advertising men joining as individuals such an
association, it is not desirable that they should do so as representa-
tives of the constituent companies with any purpose in view of having
the advertising controlled in any way. It was thought advisable,
however, that the advertising men of the various constituent com-
panies in the different centers should get together from time to time
for an interchange of ideas among themselves. And it was agreed
that the members will take the question up with their representatives
along this line.
advertising.
January 19, 1910.
One hundred and fourteenth meeting.
The chairman advised that since the last meeting Mr. Baackes has
raised the question of our advertising in the Iron Age, in view of the
Saper being divided and an increased rate asked, wMcli he referred to
[r. Dickson, and Mr. Dickson replied the corporation has no contract
with these people, and the matter will be left with each company to
make its own arrangements, but this should only be done after consul-
tation with the others.
3970 UNITED STATES STEEL CORPORATION.
Mr. Baackes stated that lie has taken no action as yet, but does not
believe anything better than the rate offered can be done unless some
arrangement to include all the companies can be made. So far as the
wire company is concerned, some or their trade is reached by the Iron
Age and some by the Iron Age Hardware, and he beheves they should
use both papers, but their people say they can not advertise properly
with less than a full page, which will mean twice the amount they are
now paying, $1,856 per year. The chairman remarked it is for us to
decide whether the amount we are paying is too great for the benefit
we are receiving. Personally he does not believe that contract adver-
tising of the heavy lines brings in any business; that their pocket
companion is the best advertisement possible for beams, channels,
plates, etc., and this in the hands of all engineers and builders. They
have been using their space (a total of about $25,000 per year) to
advertise their latest specialties, but feel now that all the good has
been done that advertising can do. If it is thought desirable, how-
ever, to continue patronizing the papers in this way, they are ^villing
to do so, but he thought we ought to decide upon the amount we wifl
give each one and divide it among the different companies.
Mr. Dickson said, in his opinion the constituent companies ought
to do a certain amount of well selected advertising. The Iron Age
and the Iron Trade Keview are the recognized trade papers and
undoubtedly have considerable influence^ and he thought we ought to
subscribe toward them as a semipublic institution.
Discussion developed that the sheet and tin plate has been paying
. the Iron Age $1,040 per page, the tube company $1,402 per page, the
Carnegie Co. $1,720 per page, the steel and wire company $1,856 per
page,Teimessee $990 per half page, the bridge company $700 per half
page, and Illinois $526 for one-quarter of a page. Under the new
arrangement, there is a fixed rate of $1,856 per page, which means if
the present advertisements are continued they will be paying quite a
little more than at present.
Mr. Farrell expressed the opinion that it would not be policy to
withdraw our support from the new management of this paper. It
is quite evident that the main purpose in dividing this paper was to
secure more advertising, and he does not think we are called upon to
advertise in both, but that the amount paid them at present is suffi-
cient, and we should either divide it between the two by taking only
half the space, or patronize but one of them.
*******
The chairman further mentioned that a representative of the Ohio
VaUey Manufacturer, published in Wheeling, called upon him a
short time ago and stated they felt that as we have such large
interests in Wheeling, BeUaire, and Mingo, we ought to give them a
little advertising. It was the feeling that as this is a local proposition
only, the Carnegie and tube companies being interested, it would not
be unwise to patronize the paper to a small extent, and the chairman
stated he would take the matter up with the tube company.
united states steel ooeporation, 8971
Febeuart 16, 1910.
data regaeding purchases.
One hundred and fifteenth meeting.
The following letter was presented by the chairman:
Pittsburgh, Pa., February 11, 1910.
Mr. H. P. BoPB,
First Vice President, Building.
Dear Sir: The purchasing agents are sending us in weekly a statement of all
important purchases, and every three months a statement of all purchases made by
the various companies of the United States Steel Corporation. No arrangements
have been made by us for keeping the figures of sales made by the constituent com-
panies of the United States Steel Corporation to firms from whom we make purchases,
and we take it for granted that it is not the intention of the General Managers of Sales
Association to keep any such record.
The letter goes on to suggest a record of sales, which was not
recommended.
One hundred and sixteenth meeting.
March 16, 1910.
April 20, 1910.
ADVBETISING.
One hundred and seventeenth meeting.
Mr. Benner mentioned they are now spending in advertising their
specialties about $25,000 per year, the most of it being on the basis
01 a full page, which they have thought advisable up to this time, in
order to include cuts, etc. The point has been reached now where
this is not considered necessary, and it is felt with the expiration of
the present contracts, which cover practically only eastern issues^ it
will be well to reduce their space to half-page and apply the saving
to advertisements in Chicago, Denver, and San Francisco papers.
He was authorized to arrange accordingly.
One hundred and eighteenth meeting.
One hundred and nineteenth meeting.
One hundred and twentieth meeting.
One hundred and twenty-first meeting.
One hundred and twenty-second meeting.
ADVEETISING.
Mat 18, 1910.
June 15, 1910.
July 20, 1910.
August 17, 1910.
September 21, 1910.
October 18, 1910.
One hundred and twenty-third meeting.
Mr. Andrews advised that with the expiration of their advertising
contracts at the end of the year, it is proposed to make some changes
and follow largely the plan of the wire company in advertising more
in farm ioumals. For instance, he can see no benefit to be derived
by runiung a whole page in the Iron Age, and it is the intention to
cut down this space ana use the saving in other directions. It is not
the intention to increase the total expenditure. He was authorized
to make such changes in this respect as thought advisable.
3972
UNITED STATES STEEL COEPOKATION.
One hundred and twenty-fifth meeting.
Deoembeb 21, 1910.
January 18, 1911.
One hundred and twenty-sixth meeting.
The following letter was presented for the information of the
members :
H. P. BoPE, _ •
Chairman Sales Managers Association, Pittsburgh, Pa.
Dear Sir: Referring tx) request at the last meeting of general managers of sales,
that a list be compiled of foreign prices on various steel products which we manu-
facture delivered on the Pacific coast duty paid, we beg to give you below the follow-
ing estimates, column 1 being duty paid; column 2 being the probable TnininniTn
price which under any circumstances foreign makers would be likely to quote landed
at San Francisco duty paid, the reason being that present foreign prices are com-
paratively high, and as they are subject of course to fluctuations, we think it would
be well in making any comparisons to estimate on the probable lowest prices which
any foreign manufacturer would be likely to quote, based on present rates of duty.
These prices are hkewise based on the assumption of considerable
quantities and lengths not exceeding 40 feet.
Foundry pig iron..
Steel bars
Sheet bars, billets.
Ship plates
Boiler plates
Structural shapes . .
Hoops .
Channels.
Angles —
Tees.
Tee rails
Girder rails.
Fishplates . .
Rods..
Wire nails, base sizes
Varnished wire *.
Galvanized wire
Barbed wire
Bright wire
Black sheets, 24 gauge
Galvanized corrugated sheets, 24 gauge
Tin plates, coke, 107 pounds, 14 by 20 (box) .
Tin plate, coke, 100 ponuds, 14 by 20 (box). .
Tin plate, coke, 90 pounds, 14 by 20 (box). . .
BlacK gas tubes, J-inch to O-inches
Galvanized gas tubes, Wnch to 6-inches
Boiler tubes '.
Column 1.
$21.25
43.07
32.77
49.95
53.65
40.46
50.37
45.31
44.11
47.71
36.02
34.82
48.52
40.62
47.70
64.42
73.95
77.43
63.15
60.85
79.65
4.96
4.73
4.62
71.22
88.02
76.14
Column 2.
$18.60
35.13
29.27
42.05
45.65
37.46
43.07
37.37
36.17
38.67
27.31
30.75
38.73
34.85
47.70
60.42
67.76
70.87
59.55
60.91
76.96
4.20
4.00
3.86
71.20
88.00
76.14
All prices are per ton of 2,240 pounds, except tin plate.
Yours, truly,
United States Steel Products Co.
E. P. Thomas.
One hundred and twenty-seventh meeting.
One hundred and twenty-eighth meeting.
One hundred and twenty-ninth meeting.
One hundred and thirtieth meeting.
Febeuaey 15, 1911.
March 15, 1911.
April 19, 1911.
May 17. 1911
united states steel coepokation. 3973
June 21, 1911.
One hundred and thirty-first meeting.
One hundred and thirty-second meeting.
One hundred and thirty-third meeting.
One hundred and thirty-fourth meeting.
PACIFIC COAST DEPARTMENT, UNITED STATES STEEL PRODUCTS CO
July 19, 1911.
August 16, 1911.
September 20, 1911.
The following notice was presented by Mr. Farrell:
Arrangements have been effected for the organization of a Pacific coast department
of the United States Steel Products Co., which will take charge of the selling and dis-
tribution of the products, and will generally handle the business of the various manu-
facturing subsidiaries of the United States Steel Corporation in the Pacific coast
territory. The Pacific coast department will embrace all that territory which is now
defined by each of the subsidiary companies as comprising its Pacific coast territory.
The warehouse business of the United States Steel Corporation on the Pacific coast
will also be consolidated under the jurisdiction of the new department, which will
take over, carry, and handle the stocks of the subsidiary companies at the established
distributing points in that territory. These ofiicers and warehouses are located at
San Francisco and Los Angeles, Cal., Portland, Oreg., and Seattle, Wash. The
office addresses are: San Francisco, Rialto Building, on Mission Street, corner of New
Montgomery Street; Los Angeles, Jackson Street, corner Central Avenue; Portland,
Sterling Building, Sixth Street, corner of Alder Street, and Seattle, Fourth Avenue,
south corner of Connecticut Street. The executive officers of the United States Steel
Products Co. in charge of the Pacific coast department are: A. T. De Forest, vice
president; W. A. Ross, assistant treasurer; H. F. Wilson, auditor and assistant secre-
tary. The headquarters will be in the Rialto Building, San Francisco.
The consoldiation of the Steel Corporation's Pacific coast interests under the direc-
tion of one subsidiary company is aimed to afford to its patrons efficiency as to ship-
ments and a general distribution service. The new department will not only sell
from warehouse stock, but for direct shipment from mill, the products manufactured
by the American Bridge Co., the American Sheet & Tiiiplate Co., the American Steel
& Wire Co., the Carnegie Steel Co., the Illinois Steel Co., the Lorain Steel Co., the
National Tube Co., the Shelby Tube Co., and the Tennessee Coal, Iron & Railroad Co.
The new selling arrangement is effective October 1.
Mr. Hatfield, of the American Bridge Co. of New York, mentioned
that frequently contracts for Pacific coast work are placed with them
in New York, and it was the opinion that this practice should be
continued.
Mr. Thomas stated that all of the offices of the subsidiary com-
panies are to be empowered to take up any export business arising
in their territory.
ADVERTISING.
Mr. Bope stated their people desire to insert a half -page advertise-
ment in the Automobile Trade Directory, at a cost of $250 per year,
for the special purpose of advertising vanadium steel. This was
authorized.
Mr. Andrews advised that a number of their principal sheet com-
petitors have been carrying on a very expensive ^.dvertising cam-
paign for a year or more, and in order to meet this they have prac-
tic^y been forced to place advertisements recently in Good Roads,
American Metal Market, the Hardware Reporter, and the Engineering
News, at a cost of 12,405. These expenditures were approved.
3974 united states steel, coepoeation.
June 17, 1909.
eelations with jobbees.
One hundred and seventh meeting.
Mr. Buffington has prepared a form of contract which is along the
lines discussed at our last meeting. It is drawn up tentatiTely as to
Kyerson, but is intended to cover the others as well, and in brief is as
fpllows :
That the jobbers wiU absolutely give up direct shipments. They
will carry no stock but that manufactured by the corporation in its
particular lines. They will carry it on consignment and be allowed
a compensation by the corporation for putting it in and taldng it out
of stock on the sliding-scale basis, following out the suggestion that
there will be a minimum of $1 and maximum of $2 per ton, based
upon prices for the material. The agreement can be terminated upon
60 days' notice by either party. * * * Provision is also made that
for any material these people may fabricate there will be no allowance
whatever.
August 17, 1910.
One hundred and twenty -first meeting.
The chairman advised that the Carnegie and Illinois corapanies had
served notice on the large jobbers, Ryerson and Bourne-Fuller, that
with the expiration of their present contracts, August 23, the pohcy
would be to charge them market prices on all material they buy.
The small allowance ^vill be made on the material that actually goes
into their warehouses, but nothing whatever will be allowed on any-
thing shipped direct to customers.
Septembee 2, 1910.
eelations with jobbees.
One hundred and twenty-second meeting.
Allowance on tonnage which goes into warehouse of jobbers of
$1.50 per ton for handling when the price is 1.40 cents, but if there
should be any change, either up or down, it will be a question of con-
ference as to what allowance will be made. On all direct shipments
the market price will be charged.
August 16, 1911.
relations with jobbees.
One hundred and thirty-third meeting.
Mr. Andrews stated he thought we can figure upon the competition
of the Pacific Hardware & Steel Co. on the coast. He has had sev-
eral interviews with Mr. Scott and Mr. Morton, of this company, and
they seem to have made up their minds that they are going to coop-
erate ^\^th other people in opposition to us. Mr. Worcester said it is
not, of course, the intention m establishing a warehouse there to try
to shut out competition. In fact, we want competition, and he
believes it would be to our disadvantage to try to take the Pacific
Hardware & Steel Co. (and all other large buyers) away from com-
petitors, which will result in making the independent manufacturers
hunt the whole coast for business. Personally he thinks there is no
more desire on the part of these people to fight us than we have to
fight them, but that they look at the matter in a broad-minded sort
of way, and that they wul hold prices. At the same time he believes
that practically every seller on the coast will at times look to our
warehouses for his needs.
UNITED STATES STEEL CORPORATION TRAFFIC ASSO-
CIATION.
tinltialed: W. B. S., E. W., J. D. C, T. A.]
Pittsburgh, Pa.,
Monday, January 11, 1909, at 9.30 a. m.
The eighty-fifth meeting of the traflac association, held in room
1510, Frick Building. There were present: Mr. J. S. Keefe, chair-
man, American Steel & Wire Co.; Mr. D. N. Bates and Mr. J. A.
Coakley, American Steel & Wire Co.; Mr. C. S. Belsterhng, American
Bridge Co.; Mr. A. G. Young, American Sheet & Tin Plate Co.; Mr.
F. C. Baird, Bessemer & Lake Erie Railroad Co.; Mr. L. C. Bihler,
Carnegie Steel Co. and Universal Portland Cement Co.; Mr. F. E.
Learned, Elgin, JoUet & Eastern Railroad Co.; Mr. F. T. Bentley,
Illinois Steel Co. and Universal Portland Cement Co.; Mr. R. B.
Porter, Lorain Steel Co.; Mr. J. F. Townsend, National Tube Co.;
Mr. A. W. Carey, Tennessee Coal, Iron & Railroad Co.; Mr. A. F.
Mack, United States Steel Products Export Co.
The meeting was called to order with Mr. J. S. Keefe in the chair;
S. B. Duff, secretary of the meeting.
The minutes of the meeting of December 16, 1908, were read and
approved.
ADVANCE IN FREIGHT RATES.
Mr. Townsend. Mr. Bentley and I had a meeting in Chicago with
the following gentlemen: Messrs. H. Gower, freight traffic manager
Rock Mand; J. A. Mddleton, freight traffic manager, E. K. Voorhees,
general freight agent, Frisco System; Theodore Brent, assistant to
third vice president, representing W. B. Biddle, third vice president,
Frisco System; S. H. Johnson, assistant general freight agent. Rock
Island; H. A. Snyder, assistant general freight agent Rock Island;
F. C. Reilly, general freight agent Chicago & Eastern Illinois Railroad.
They talked in a very plausible manner and introduced the time-
honored argument that they advanced the rates on pipe and other
commodities so that they could buy steel products and other supplies
generally. I did not say very much excepting to emphasize that we
did not receive any advance information or the contemplated advance
until after the tanff had been published a month. Wnen I returned
home I wrote both Freight Traffic Managers Gower and Mddleton,
giving the exact points and a history or the rates during the last
three years^ showing advances of 12 J cents during that period. Mr.
Gower rephed that they would go into the question. Mr. Mddleton
wrote a long letter intimating that it would be impossible to make
any change. However, I am glad to say that I have just received
a telegram from Mr. Middleton dated January 9, stating that the
rates on pipe to Oklahoma points would be restored just as soon as
3975
3976 UNITED STATES STEEL COEPOEATION.
the tariff could become effective legallj^, either the latter part of
February or the first of March, and would continue the rates at least
six months.
This is undoubtedly the result of the meeting that I had with Third
Vice President Biddle in Chicago last week, when he reiterated the
statement that he had made in the past that we would always be
advised just as soon as it had been clecided to make any change in
the rates on our commodities.
MISSOURI, KANSAS & TEXAS RAILWAY.
Mr. Young. Missouri, Kansas & Texas Railway for some reason
appeared to be rather in favor of helping out other interests at the
present time. Last week they put in force a lesser rate on cut-can
stock than apphes on tin plate. We objected and have taken the
matter up with other roads and obtained a reduction in the rate on
tin plate to correspond with the reduction in the cut-can stock so
that no harm has been done.
TERMINAL ALLOWANCES.
ilr. BiHLER. There has been no further action taken by the general
terminal committee on this subject since report made at the last
meeting of the traffic manager's committee. The Monongahela con-
necting are now treating individually with the Pittsburgh & Lake
Erie, and I presume therefore nothing wiU be done by the other roads
with the Union, Newbergh & South Shore and Lake Terminal propo-
sitions, since the logical assumption would be that the roads com-
peting with these latter lines wUl simply lay back and await the out-
come of the independent negotiations between the Pittsburgh &
Lake Erie and ilonongahela Connecting Railroads.
Mr. CoAKLEY. During the last 30 days the Cleveland roads pub-
lished an allowance of $1 per car for stopping serve at the furnace
in Cleveland for the Upson Nut Co., which company has heretofore
been without any allowance whatever.
PACIFIC COAST.
Mr. Bentley. I have given more or less data to the transconti-
nental hues in regard to foreign import conditions, advising that they
would assist all possible in holding the trade here.
ATTITUDE OF SANTA FE.
After having several interviews with the Santa Fe road in relation
to having them purchase from the corporation, I have received an
affirmative statement from Mr. Gorman that they will buy their
open-hearth steel rails from us.
BESSEMER & LAKE ERIE RAILROAD.
ilr. Baird. The following is a summary of the outbound carload
traffic shipped from the various works on the Union Railroad via
our line during the month of December, 1908:
UNITED STATES STEEL COEPOEATION.
3977
From—
1908
1907
Cars.
1,136
404
903
10
116
2U7
Tons.
48,304
12,786
27,604 i
186
4,741 .
6,990
Cars.
214
206
1934
109
Tons.
Edgar Thomson Works
6,473
Duquesne Steel Works
Homestead Steel Works
33 476
Howard Axle Works. . .
Universal Portland Cement Co . . .
American Steel & Wire Co . .
114
1,850
Total
2,836
1,269
99,507
46,680 |.
1,577
Increase
1 Includes shipments from Carrie furnaces.
The following is the record for the year 1908, as compared with
the year 1907:
From—
1908
1907
Cars.
Tons.
Cars.
Tons.
Edgar Thomson Works
5,616
3,629
8,907
361
842
2,017
1,256
225,261
110,479
291,009
15,882
33,064
52,412
51,344
4,916
3,633
'8,076
1,447
168,728
116,750
294,452
61,315
Homestead Steel Works
Carrie furnaces
American Steel & Wire Co
2,986
66,399.
Universal Portland Cement Co
Total
22,618
1,561
779,161
92,507
21,057
686 644
Increase
1 Includes shipments from Carrie furnaces.
RELATIONS WITH ELGIN, JOLIET & EASTERN RAILWAY.
Mr. Learned. I submit the following report of shipments via the
Elgin, JoHet & Eastern Railway, showing an increase in tonnage
from the constituent companies for the monh of December as against
November, and an increase as against December last year:
December, 1908, against November, 1908.
December,
1908.
November,
1908.
Increase. *
Decrease.
A.B.Co
Cars.
45
417
418
276
186
14
Cars.
83
348
217
225
174
27
38
A. S. & T. P. Co
69
201
51
12
A S <feW Co
C. S Co •
N. T. Co
TCI &R.B.CO
13
-
1,356
1,074
333
51
3978
UNITED STATES STEEL COBPOBATION.
December, 1908, against December, 1907.
December,
1908.
December,
19OT.
A B Co
Cars.
238
210
295
187
112
14
AS A: T P da
Increase.
A S &W Co
Do.
C S Co
Decrease,
N T Co
Increase.
TCI & B, R Co
Do.
Increase December, 1908, over December, 1907, 206 cars.
New York, Thursday, February 18, 19G9.
The eighty-sixth meeting of the Traffic Association held in room
1124, Cortlandt Building.
Present: Traffic managers of various companies.
BESSEMEB & LAKE ERIE EAELROAD.
Mr. Baikd. The following is a summary of outbound carloads
traffic shipped from the various works on the Union Railroad via
our line during the month of January, 1909:
From—
1909
Cars.
Tons.
1908
Cars.
Tons.
Edgar Thomson Works
Duquesne Steel Works
Homestead Steel Works
Howard Axle Works
Carrie Furnaces
American Steel & Wire Co
Universal Portland Cement Co
Total
Increase
466
788
22
7
264
55
28,752
14,220
26, 152
920
330
5,714
2,023
121
366
912
124
67
76
3,604
12.900
31,371
6,706
2,42S
1,362
2,301
77,011
18,731
68,280
For the year 1908 we have practically the same tonnage that we
handled in 1907, during which year we gave the Nickel Plate 47 per
cent of the aggregate. In 1908 we turned over to the Nickel Plate
about 52 per cent of the aggregate, showing that out of the same
tonnage received we gave that road 5 per cent greater than the pre-
vious year.
(Statement of shipments via the Elgin, Joliet & Eastern Railway
from constituent companies for January, 1909, is annexed to the
minutes.)
WEIGHING CHA.EGES.
Mr. Bates. We have never as yet paid the New Haven road for
weighing shipments coming into our yard, although they have sent
us bills. I would like to mow if in other cities a weighing chaise la
in force ? The New Haven road want to charge $1 per car.
Mr. Young. All outbound weighing the railroads are performing
free where the industries have scales on their own or on property
adjoining or at a convenient location. On inboimd an agreement haa
UKITED STATES STEEL. CORPOEATION. 8979
been reached with all the railroads in the Pittsburgh valleys and Ohio
districts that 10 per cent of the total amount of inbound material
would be weighed free of charge; anything in excess of that would be
25 per cent for each weighing on scales owned by the factory. Coal,
coke, and ore eliminated from free weighiag on inbound business, but
to be taken into consideration when arriving at the total of inbound
business.
Mr. Bates. At Worcester we pay for the locomotive and do our
own weighing and do not see how the railroad can charge us for
weighing.
It was explained that if a rental was being paid for the locomotive
and the weighing done by the Axnerican Steel & Wire Co. there should
be no charge for weighing.
OAKTAGE AT WINNIPEG.
Mr. Maok. ♦! desire to call attention to the cartage proposition at
Winnipeg which has been up a number of times, but it now transpires
that the Great Northern and Soo lines have published tariffs in con-
nection with the Canadian Northern and Canadian Pacific lines cover-
ing rules and regidations of produce at that point and which state
that on all railroad traffic from points east of the western termini of
the trunk lines and if via Lake or points as far west as Toledo or
Detroit they will allow cartage to consignees which on our carload
commodities amounts to 2 cents per 100 pounds. We have just
received a claim from one of our Winnipeg customers amounting to
$80 or $90 for cartage on shipment of sheet steel from American
Sheet & Tin Plate Co., which shipments were made from Bridgeport,
Ohio, which under the tariffs referred to is not included in the regu-
lations giving cartage allowances and as these regulations do make
the cartage allowance on shipments made from Vandegrift, same
being east of the western termini of the trunk lines, the customer
demands that we pay them the cartage allownace which they have
lost.
It would seem to us that we are obligated to the customers in this
matter, and we put the matter up to the meeting for advice as to
whether under the circumstances, if the shipping company saw fit
not to ship from Vandegrift, they should protect the customer if they
ship from Bridgeport or points west. The rule seems to be a peculiar
one and unfair for the reason that we understand that the Canadian
Pacific and Canadian Northern lines do not prorate from either trunk
territory or points west of there, say in Ohio, to Winnipeg and under
their tariff obtain the same arbitrary from St. Paul or the head of the
Lakes whether originating east or west of trunk line termini.
Their proportion therefore is the same, and it would seem as though
their cartage regulations should be the same, and I would request
that the traffic managers take this matter up immediately with the
C. P. K. and C. N. lines witha view of having this rule modified so as
to protect us from either Ohio or Pennsylvania mills. Otherwise we
ai-e liable to be confronted with such claims or always compelled to
ship from mills in trunk line territory, which our shipping companies
may many times find inconvenient.
Mr. Young. I would be glad to have you write me giving all the
facts in this case, upon the seat of which the matter will be taken up
and would ask you to hold the claim in abeyance until we get a ruling.
31572— No. 53, pt. 2—12 16
3980 tiJSTITED STATES STEEL COBPOEATION.
DIFFERENTIAL BETWEEN PLAIN AND FABRICATED MATERIAL FOR
PACIFIC COAST.
The arguments presented by Mr. Belsterling of the American
Bridge Co. before the Transcontinental Association against the estab-
lishment of such differential were universally approved by the traffic
committee. A letter was drafted and sent to Mr. W. B. Dickson
along these lines.
CAR SERVICE PER DIEM.
The special committee appointed by Chairman Keefe to look into
the question of the amount of loss to the various terminal railroads
now in the per diem agreement owned by constituent companies
through the handling of individual coke cars wish to report that a
very careful estimate of the difference in the revenue .that would be
derived from the reclaims based on four average months' business of
the various plants that are located on per diem terminal roads
amounted to $74,623.50 per annum as follows:
Union R. R $32, 503. 50
Lake Terminal R. R., McKeesport Connecting R. R., Newburgh & South
. Shore Ry 32,400.00
Pittsburgh & Ohio Valley R. R 9, 720.00
Total 74, 623. 50
The above figures are based on the present per diem arrangement,
$5 reclaim for the Union Railroad and Newburgh & South Shore Rail-
way, and $4 for the above roads named, the per diem reclaim being
on the basis of 25 cents per day. These figures, based on the quan-
tity of equipment, may look large, but your committee thinks they
are low as com pared with the earnings that the cars would make on
per diem, and really present additional revenue over and above
amounts earned to-day.
Another important feature would be that the per diem plan would
not only prompt every one of the plants to speed the handling of cars,
but would stimulate the movement by the railroads, for when it is
changed from mileage to a time rate they would be more eager to
keep the cars moving.
J. F. Townsend (chairman), A. G. Young, L. C. Bihler, J. A.
Coakley.
The Chairman. What shall be done with the report of the com-
mittee on car service per diem ?
It was moved by Mr. Carey that the report be adopted, which
motion was seconded by Mr. Mack and carried.
milling in transit.
Mr. Bihler. I wish to advise that the Central Freight Association
lines have issued tariffs covering fabrication in transit of steel to be
apphcable at the stations where there are fabricating shops on the
basis of through rates from shipping point to final destination of job,
with privilege for stop-off at the fabricating plant at an additional
cost of 1^ cents per 100 pounds over the straight through rate from
shipping point to final destination, allowing four months for fabrica-
I
UNITED STATES STEEL COEPOEATION. 3981
tion. The Western Trunk Association had a similar proposition
before them for consideration at Chicago, Wednesday, February 17,
appUcation being made by some outside interest for the same arrange-
ment as the Pan Handle have in east of Chicago.
This subject was discussed at great length, arguments presented
iro and con, after which the following were appointed a committee
y the chairman to assemble the facts and report at the next meeting:
Messrs. A. G. Young (chairman), C. S. Belsterling, L. C. Bihler,
F. T. Bentley.
Mr. Young. I would hke to go on record as going to oppose any
proposition that will encourage a new miUing-in-transit plan on black
sheets to be stopped off en route to be galvanized, to be worked up
into roofing or other material.
Mr. Belsterling stated that the practice of milling in transit of struc-
tural steel has been in vogue for years. This is a matter that solely
concerns the American Bridge Co., as it has no effect whatever upon
black sheets, galvanized iron, wire, pipe, or any other commodity any
more than the practice of milling grain in transit would have an appU-
cation for a similar practice on leather into shoes. So far as the bridge
company is concerned, Mr. Belsterling feels that the practice is equit-
able. The legal phase has been gone over very thoroughly with Judge
Reed and also with Commissioner Clark, who looks upon fabrication
of structural steel in transit as an equitable and wise proposition.
The abandonment of such a practice, although it would be absolutely
impossible to do so, would mean the paying of an enormous amount of
unnecessary freight charges by the bridge company.
TERMINAL ALLOWANCES.
Mr. TowNSEND. Since our last meeting the General Terminal Com-
mittee of the railroads had a meeting in Pittsburgh, at which no agree-
ment could be reached, for the interested lines asked to have the
Monongahela Connecting Railroad, and then the Union Railroad,
eliminated from the vote. This resulted ia another meeting of the
subcommittee of the transportation officials, held in Cleveland on
February 8. There was no railroad considered excepting the Lake
terminal, and it seems that this meeting was called for the express
purpose of making an attack on that road, because it was the first one
of the terminal roads to obtain a change in the basis of its rates from
a per-car rate to a per-ton rate. It developed, however, that General
Manager Johnston, of the Nickle Plate, would not vote with the major-
ity, insisting as that was the only terminal line with which his railroad
had track connection that he would not have it singled out and placed
on any lower basis than the other terminal railroads.
The subcommittee referred the matter subject to the executive offi'
cers, and they held a meeting in New York yesterday, with the follow*
ing result: After the report of the subcommittee was read and dis»
cussed at length, Mr. Worthington introduced a resolution to have a
special committee of nine men appointed to establish the property
values of the terminal roads, and this special committee is to consist
of disinterested men, experts not in the employ of any of the raihoada
in interest, three civil engineers, three transportation men, and three
auditors. The resolution was carried unanimously and the special
committee is to be appointed within 10 days.
3982 uisriTED states steel corporation.
The expression of those attending the meeting indicates that the
executives of the railroads recognized that the modern plan of fixing
the basis of freight rates adopted recently by all railroads — ^i. e., the
use of a rate per ton for aU interchange-terminal service performed
for each other, instead of the old method of a per-car switching charge,
is in all fairness the only basis that can be fixed for the terminal roads,
simply because the average carload has been doubled since the per-car
switching charge was estabUshed, and I think the per-ton rate basis
will not only be estabUshed for coal and coke, but for aU traffic.
Wednesday, March 17, 1909.
[Initialed: W. B. S., E. W., J. D. C, T. A.)
The eighty-seventh meeting of the traffic association, helJ in
room 1124, Cortlandt Building, New York.
Present: Traffic managers of various companies.
TERMINAL ALLOWANCES.
This report was forwarded by Mr. Townsend: The engineers' com-
mittee selected by the executive officers of the railroads, consisting
of three eminent engineers, held its first meeting in Cleveland Monday,
the 15th instant, and organized. J. F. Wallace, chairman. New
York; J. T. Odell, New York; G. H. Kimball, Detroit; John Lundie,
D. Sc, secretary, New York.
This committee, after its meeting in Cleveland, visited Lorain on
Monday and went over property of the Lake Terminal Railroad very
carefully, and the indications are that they are very much in earnest
and propose to go into the terminal question thoroughly.
In returning from Lorain they had a conference on the train and
Chairman Wdlace called particular attention to the resolution that
held them down to simply the question of fixing a value for the
terminal properties with apparently no other authority. He and all
of the members felt that the scope of the special committee should
be broadened to take in the whole question of terminal allowances,
and they decided to request the general committee of the railroads
for another meeting with the view of having this feature changed.
They all point out that the subcommittee of engineers contained the
only members of the special committee of nine that are disinterested,
for all of the other members composing both the auditors' special
committee and the car-service managers are either directly or indi-
rectly employed by the railroads interested in the terminal questions.
It was also brought out at the conference that each one of the
members of the engmeertng committee have had many years' expe-
rience as operating officials of railroads that covered transportation
as well as maintenance of way problems, and they believe that they
are competent to pass on the whole question. To use Mr. Wallace s
own words, "The special committees composed of auditors and car-
service managers should obtain necessary statistics and compile data
for the inforrnation of the engineers' committee, but should not have
a voice in fixing the basis of rates."
The committee wiU go over the Newburgh & South Shore and the
Mercer Valley Railroads on Tuesday and the Union Railroad on
Wednesday and the Mon. Conn, and other terminal roads in the
UNITED STATES STEEL COBPORATION. 3983
Pittsburgh district will be inspected during the balance of the week.
Under the circumstances I have concluded to stay on the ground and
keep in touch with the engineers.
STEEL-RAIL BATES.
. Mr. BiHLEK. The Bethlehem, Pennsylvania, and Maryland steel
companies are agitating strongly through their initial lines the freight*
rate revisions from the rail mills at Bethlehem, Sparrows Point, and
Steelton to poiats west of Buffalo and Pittsburgh, on raUs. The
rates from eastern mills now range from 11.04 per ton and upwards to
about $1.45 higher than Pittsburgh rates. Bethlehem wants 75
cents differential horizontal over Pittsburgh, while the railroads pro-
pose a uniform differential of $1 over Pittsburgh to all points where
the Pittsburgh rate to destination is $1.50 per ton or greater. This
opens up the whole steel-raU rate q^uestion from the producing miUs.
A general meeting of the rail committee and traffic representatives of
the rail-producing companies is to be held at Buffalo on March 18,
and the corporation will be represented to take care of its various
interests. We intend to insist on general revision to protect Besse-
mer and Youngstown, as our position is that it is impracticable to
single out eastern mUls for revision, decreasing their disadvantages
into western territory without making corresponding corrections in
rates from Youngstown and Bessemer to points where these are at a
disadvantage. In other words, to insist on carriers not singling out
any preferred locaUty for revision, but to make the revision general
if there is to be one.
GRAND TRUNK RAILWAY SYSTEM.
Mr. Maok. The Grand Trunk Railway buys very largely from us
and the Canadian Pacific very little, and I feel that the Grand Trunk
Railway should have a fair snare of our business into Canada.
The Canadian Pacific Railway received a large proportion of the
western business, which amounts to quite a tonnage, and I would
suggest, therefore, to the traffic managers that they give the Grand
Trunk a larger share of the business into eastern Canada, which they
are entitled to from the standpoint of business they do with the
corporation.
The Chairman. I would be glad to have each member bear this in
nfind and endeavor to help the export company all you can, and do
anything possible for the Grand Trunk into Eastern Canada.
Statement of cars and tonnages over the E. J. E. and B. L. E. from
the constituent companies.
MILLING IN TRANSIT.
The chairman of special committee appointed at last meeting,
Mr. G. A. Young, reported that the special committee had a meeting
at Pittsburgh March 4, at which the subject was thoroughly gone
into. The mterested companies each made individual reports as to
the exact difficulties, detriments, probable effects or benefits, that
presented themselves in connection with this matter, and in view of ■
the varying conditions, as they seemed to effect each subsidiary
8984 UNITED STATES STEEL COEPOEATION.
company of the corporation, as outlined in the minutes of the special
committee of March 4, the special committee did not think that it
could frame or recommend a line of ixniform action, and are of the
opinion that the present conditions must be permitted to continue
for a time and each subsidiary company allowed to handle the matter
as their best individual policy and judgment dictates, it being under-
stood that no subsidiary company feels that anything whatsoever
should be done by any one company inimical to the interests of any
other subsidiary company.
AVERAGE FREIGHT RATES.
Mr. C. K. Winslow, representing Mr. John Reiss, assistant to
president United States Steel Corporation, was invited into the meet-
ing, and he stated that it was the desire to get up a new statement,
showing the average freight rates from each of the producing districts
to each of the individual States of the United States, and the following
committee was appointed by the chairman to meet with Mr. Winslow
at 2.30 p. m., 71 Broadway, for the purpose of ascertaining just what
was desired: Messrs. L. 0. Bihler, chairman; A. B. Young, F. T.
Bentley, A. W. Carey, J. F. Townsend, W. 0. Davison.
Statement of car service per diem, credits and debits of the various
companies as of March 17 is attached to minutes.
RATE CAR WHEELS.
Mr. BiHLER. Buffalo, Rochester & Pittsburgh Railway have
been cutting rates on car wheels, and later on iron and steel articles
from Buffalo, and the Nickel Plate and the B. & L. E. were forced to
meet the competition. These other roads forced the issue to the
extent that the cut rate from Buffalo to Butler on car wheels and iron
and steel has been extended to Pittsburgh and McKees Rocks, and in
self-protection the Carnegie Steel Co. has now demanded a reduction
in rates on car wheels and iron and steel from Pittsburgh and McKees
Bocks to Buffalo. Indications are that it will be granted.
New York, Wednesday, April 21, 1909 — 10 a. m.
The eighty-eighth meeting of the Traffic Association held in room
1122, Cortlandt Building.
[Initialed: W. B. 8., E. W., J. D. C, T. A.J
Present: Traffic managers of various companies.
BTEEL-RAIL RATE SITUATION — BETHLEHEM, STEELTON, AND SPAR-
ROWS POINT VERSUS PITTSBURGH.
Mr. BiHLER. The rail situation is in a rather precarious shape, Beth-
lehem and Pennsylvania steel companies using as an argument that if
Lorain, 175 miles west of Pittsburgh, is justly entitled to 40 cents
differential over Bessemer, then $1 is not an unfair differential to
Bethlehem, Sparrows Point, and Steelton going west. The Jersey
Central and the Lehigh Valley Railroads are in a frame of mind rather
ready to break down the steel-rails committee and issue the $1 basis
UNITED STATES STEEL COKPORATION. 3985
independently. When we analyze it from a fair standpoint, we can
not offer any valid objection to this argument.
Mr. TowNSEND. I think that the railroads are going to hold this
matter down to what is fair on the lines that the traffic moves as com-
paring Bethlehem with Pittsburgh. The same rule is true between
Bessemer and Lorain going west. In all seriousness, there is certainly
equity in our having the present differential of 40 cents between
Lorain and Bethlehem east and west. However, if the Bethlehem
basis is to be changed to 11 above Bessemer, we know of no reason
why tlie Lorain differential should not be 60 cents per- ton, just the
same as it is on iron and steel articles.
Mr. Baied. I don't think there is the least danger of the Lehigh
Valley and Jersey Central breaking the steel-rail committee, for at a
meeting held recently it was shown that they did not have any ground
to stand on. The understanding is that the railroads west will not
create any other tariff putting in an arbitrary basis of rail rates. If
they do, the Bessemer & Lake Erie will consider meeting the reduc-
tions in cents and dollars out of Pittsburgh.
PER DIEM— UNION RAILROAD.
Mr. BiHLER. Mr. Arthur Hale, chairman of the American Railway
Association car efficiency committee, has called a meeting of railroads
with the Union with a view of revising reclaim allowances from five
days for the Union to a lower figure. He seems to think the Union is
being allowed too much time and that the time ought to be trimmed
four days. The feeling of the Union is if it made four days horizontal
there will be large losses; but it may be possible to compromise by
accepting four days on coke and continuing five days on other arti-
cles, which would, perhaps, enable, them to break even.
KATE ON CAR BOLSTERS.
Mr. BiHLER. The Simplex Railway Appliance Co., controlled by the
American Steel Foundries Co., had up before the Central Freight Asso-
ciation the past week at Chicago the question of establishing sixth-
class rate on car bqlsters. The Pressed Steel Car Co., learning of this
attitude, insisted that if its sixth-class rate on bolsters is granted to the
manufacturers in the West, then they will want car bolsters carried at
the sixth-class rate in the Official Classification and to all points in
Official Classification territory, as a matter of equity.
If this is established as a principle, all iron and steel articles, plain
steel, should also be carried at the sixth-class rate, as it would be
inequitable to charge less on the finished or constructed articles, like
car bolsters, than on the plain steel out of which it is made. A special
committee of trunk lines and Central Freight Association are holding
a meeting in New York to-day to look into this matter and arrive at a
decision.
TERMINAL ALLOWANCES.
Mr. TowNSEND. A special committee, consisting of Dr. John Lundie,
G. H. Kimball, and R. C. Kimball, have since our last meeting gone
over six terminal railroads in detail, haying left Pittsburgh last mght.
I presume that they will make a report very shortly to the general
terminal committee. There have been some rapid developments
3986 UNITED STATES STEEL CORPORATION.
during the last mouth in the terminal situation. On March 25 the
Baltimore & Ohio, through its manager of freight traffic, Wight, and
general coal and coke agent. Mills, made a quotation of 15 cents per
ton on bituminous coal and coke, and on March 27 the Pennsylvania
lines quoted the same basis through Freight Traffic Manager WilUam
Hodgdon. This was followed by a meeting of the executive officers
of the railroads held in New York thefoUowingTuesday,March 30, when
it was agreed to apply the basis of 10 and 15 cents to five terminal
railroads — the Union Kailroad, Mon. Conn., Newburgh & South Shore,
Lake Terminal, and South Buffalo. While this is claimed to be the
Mon. Conn, railroad basis, it seems there is no restriction as to the rate,
applying only on traffic rated at 60 cents per ton or higher, and we
understand that the Mon. Conn, limit is 40 cents and on traffic rated
below that figure the Mon. Conn. 25 per cent of the rate. This feature
I have taken up with the Baltimore & Ohio, the Wheeling & Lake
Erie, and Nickel Plate, and I would suggest that the same move be
made by the Newburgh & South Shore, i. e., to make no effort to
have the Lake Shore change until the other three roads have agreed
to it.
The change from 15 cents to 10 cents on the coal and coke traffic
for the Lake Terminal is a very unfortunate one, and we have resisted
it, but it seems impossible to have it continued at this time. How-
ever, we should not lose sight of our friends who established the basis
on coal and coke that are really responsible for bringing about the
change in the terminal allowance from a per car switching charge to
a per ton rate basis.
Both the Union and Monongahela Connecting Railroads recognize
the difference in conditions at the lake front and will not ask for a
change in the rates of coal and coke, even though it is accorded the
Lake Terminal Railroad. I would suggest that everyone interested
in this question let it be known with the railroad representatives that
we are looking forward to a proper adjustment wnen the railroads
consider the engineering conditions report.
The facts are that while the voluntary change to the per ton basis
was made by the executive officers of the railroads apply to five termi-
nal roads, only four of them are the ones that the engineering commit-
tee has been instructed to consider.
The original proposition, we understand, was something over 100
terminal propositions. This would reduce to 12 terminal roads that
were considered by the general terminal committee, and after their
report was made only 6 roads were selected. Therefore there are
only two of the terminal railroads that we are interested in that have
not been provided for — that is, Mercer Valley and the McKeesport
Connecting Railroads. I am confident that we will have a favorable
report from the engineering committee, and with the cooperation of
the Frick Coke Co. and the ore departments we can have these two
terminal railroads established upon an equitable basis after it has
been pointed out in a very convincing manner to the engineering
committee that these roads are performing exactly the same railroad
service that other terminal roads are. Although their haul may not
be as long as others, the actual savings in the regular carriers is as
much in proportion to the tonnage handled and we know that the
operating expenses of these two terminal roads are higher than on
some of the larger terminal lines on the basis of tonnage handled.
UNITED STATES STEEL COEPOKATION. 3987
Mr. Randolph intimated to me a week ago that he thought in view
of the injunction that had been filed against the Baltimore & Ohio
and other West Virginia coal roads restraining them from advancing
the rate on coal to the Lake ports, that the present rate of coal from
Ohio mines to Cleveland and Lorain would Be reduced to 70 cents or
75 cents per ton and that the terminal allowance would be reduced
proportionately. This we agreed to — that is, with the understanding
it would be proportionately reduced as 15 cents is to 90 cents or 12
cents to 70 cents.
In this connection I wish to report that the Ohio Coal Operators last
Monday arranged to bring suit against the Ohio coal roads, and the
gapers were actually served on the Erie & Lake Erie and Baltimore &
ihio that day. The case will be brought before the railroad com-
mission of Ohio. It will be brought out that the railroads extending
across the State of Ohio are hauling West Virginia coal at 1^ mills per
ton, while the same railroads are charging rates on Ohio coal yieldmg
5i mills per ton per mile.
There can be no question but what this will reduce the rates of
Ohio coal to a very much lower basis than if the railroads had adjusted
these rates themselves on a fair basis.
Mr. BiHLER. Union Railroad has been notified by the Pittsburgh &
Lake Erie, Pennsylvania, and Baltimore & Ohio that not later than
May 10 on long-haul shipments. State and interstate, when destined
to and from industries on the Union Railroad, these roads will grant
the Union Railroad a terminal allowance of 15 cents per ton onfinished
material, billets, and higher value, and 10 cents per ton on other
material, pig iron, and in value with no change in condition on
short-haul switching rinks within the Pittsburgh switching district,
the through rate and additions remaining the same, which is entirely
agreeable, as to pay the increased terminal allowance on the short-
haul business would necessarily increase the gross rates of frdght
between Carnegie mills on the Union and the iunerican Steel & Wire
Co., National Tube Co., American Sheet & Tin Plate Co., and Ameri-
can Bridge Co., in the Pittsburgh switching limits, and because of the
desire not to increase the switching rates between the subsidiary com-
panies, we have not demanded a uniform application of the 15 cents
per ton on semifinished and finished materials on short-haul switch
movements, which is a concession for the benefit of the subsidiary
companies, as well as the Carnegie switch movement. Have told
the three roads in question that while the figures offered do not meet
our views, we having held out for 15 cents per ton, we would be
patient and wait untu the engineers reported back, when the matter
would receive further consideration.
Mr. CoAKLEY. We have accepted the 10 and 15 cents rates under
protest for the Newburgh & South Shore Railroad.
Mr. Young. Now that the question of terminal allowances for the
larger terminal roads is out of the way I would like to inquire what
is going to be done by the smaller mills. I think the matter should
come right now.
It was advised that inasmuch as the Mercer VaUey and the McKees-
port Connecting Railroads' terminal allowances have not been adjusted
as yet, it would be unwise to take up the smaller terminal or switching
propositions at this time.
3988 UNITED STATES STEEL COEPOEATION.
BATE ON SCRAP IRON.
Mr. Bentlet. The question of revision of scrap-iron rates in the
Central Freight Association was up at a meeting last week in Chicago
and referred to a special committee. Our position has been that our
meanest competition has been from the scrap-iron consumers, and if
we can get these low rates up we will take some advantage for our-
selves. For instance, from the gas belt both can not get a revision
generally.
A statement of the cars used and the tonnage oyer the E,. d. & iL.
from the constituent companies for March, 1909, is attached to the
minutes. ■!:> -d t>
A statement of the cars and tonnage over the B. & L. k.. K. K.
from the constituent companies for March, 1909, was attached to the
minutes.
IRON AND STEEL RATES CENTRAL FREIGHT ASSOCIATION.
Mr. BiHLER. I have succeeded in getting a definite statement and
promise from the Central Freight Association to the effect that on
June 5 all special rates on bar iron and car wheels, carloads, now
existing from Chicago, Fort Wayne, Terre Haute, Peoria, and St.
Louis to points located north and east of the line from Michigan City
to La Porte southbound — that is, south through Plymouth, Logans-
port, Frankfort, Crawfordsville, Terre Haute, Vincennes to Eyans-
vUle, exclusive, which are at present less than fifth class will be
canceled and the fifth-class rate restored, thus removing this dis-
crimination in the said territory that has existed against Youngstown
and Pittsburgh and placing them on a relative basis.
It is stated that the low special rates on bar iron from Fort Wayne
and Terre Haute to East St. Louis which are less than fifth class can
not be canceled, because of the fact that Chicago & Eastern Dlinois
wUl not cancel their low rates from Chicago to East St. Louis, and that
because of this condition they do not feel that they necessarily have
to reduce rates from Youngstown and Pittsburgh to East St. Louis
to compare with the low rate from Chicago.
PANAMA CANAL 'rOXJTE.
Mr. Mack presented a report indicating what in his opinion was
going to be the tonnage in the movement of export traffic of the Steel
Corporation after the opening of the Panama Canal. The canal will
shorten distances over present routes about as foUows:
From New
York.
From New
Orleans.
Miles.
To San Francisco via Straits of Magellan 8, 415
Yokohama via Suez 3, 729
Shanghai ^ia Suez 1,629
Sydney via Suez I 3,844
Melbourne via Suez 3,061
Wellington \ia Suez I 6,800
Calleo via Straits ! 6,261
Valparasio via Straits ! 3,831
Miki.
9,416
5,640
3,695
5,412
4,630
7,868
7,260
4,832
UNITED STATES STEEL COEPOEATION. 3989
While at the present time there is an established through rate from
New York to San Francisco and Seattle via Puerto Mexico and
Tehuantepec Railroad and Steamship Lines on the Pacific side from
Salina Cruz, which is called the Tehuantepec route, a new line has also
just been established to Yokohama and Kobe. The distance via this
route is, roughly speaking, say, 800 miles shorter than via Panama.
This route on account of the fact that it breaks bulk, requiring
rehandling at both points as it crosses the Tehuantepec Isthmus and
wiU find it difficult to compete successfully with the aU-water route
through the canal unless, possibly, the canal dues should be made
excessively high. The canal will, however, be of great importance to
New Orleans and other Gulf ports opening it up to and via those ports
to the south, southwest, and middle west territories, which they do
not at the present time enjoy. For instance, from the Gulf at the
present time there is no aU-water routes to the west coast of South
America nor to Australia or Far East. With the tremendous savings
in distance shown above. New Orleans and probably other Gulf ports
will unquestionably have direct sailings and there is no doubt but
what there would be direct sailings from New York via the canal to
the countries mentioned as well as to the Pacific coast of the United
States.
As to the saving of time, that is readily computed by allowing, say,
240 miles a day as the average time of a first-class freight steamer and
adding, say, 12 hours for the passage through the canal.
A statement of car service per diem of constituent companies show-
ing debits and credits dated April 21, 1909, is attached to the minutes.
Cleveland, Ohio,
Friday evening, May 21, 1909 — 8.S0 p. m.
The eighty-ninth meeting of the traffic association held at the
Union Club.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
The statement of average freight rates expected to be finished
to-day or to-morrow when will forward the chairman three copies in
order that the same may be transmitted to assistant to president,
John Eeis, of the Steel Corporation, at New York. Have extra copies
subject to disposition as instructed by chairman.
BETHLEHEM STEEL RATES.
Mr. BiHLEE. There was a meeting held by the iron and steel rail
committees at Buffalo April 23 to consider the establishment of flat
differential of $1 from Bethlehem, Steelton, and Sparrows Point over
Pittsburgh and Bessemer rates to points west of Pittsburgh where
Pittsburgh rate was SI. 50 per ton or greater. After a long discussion
it was recommended that since the new iron and steel rail committee
could not reach an agreement as to readjustment of rates from eastern
Pennsylvania and western Maryland district to Central Freight Asso-
ciation territory, the question being referred to the other chief traffic
officials of initial lines at rail-producing points for instructions, and
also in the event that a readjustment from the eastern district is
authorized that they establish a basis on which the steel rail com-
mittee shall proceed to check rates from all districts, provided changes
in Pittsburgh basis from Central Freight Association districts is con-
sidered necessary to meet readjustments from eastern districts.
3990 irNITED STATES STEEL COBPORATION.
SCRAP VEESUS PIG-IRON RATES.
Mr. BiHLER. The Central Freight Association special committee
held a conference on May 12 with the trafi&c representatives of the
various iron and steel producing concerns in Pittsburgh Valley, Wheel-
ing, and Chicago distncts to consider the request of a number of inde-
pendents for the estabUshment of pig-iron rates on scrap. A detailed
analysis of the situation showed tnat from a corporation standpoint,
where a ton of new steel, either for new light steel rails or new angles,
or hght channels, or shapes, was displaced by a ton of the same kind
of material rolled from scrap rails the corporation would lose the
profit on the ore, the steamship company on the transportation,
limestone, coke, as well as the profit in conversion of the raw material
into steel, and the carriers would lose the revenue on the ore, coke, and
limestone. While each individual subsidiary company receives more
or less scrap at their open-hearth plants, on which outside transpor-
tation charges are paid, yet the gam this way is more than offset by
having to meet the competition of rerollers for light rails and light
shapes. The corporation's views were stated to the railroad people;
the Jones & Laugmin Steel Co. were of the same view as the corpora-
tion interests. The other independents argue that the scrap for re-
melting in open-hearth furnaces should be entitled to pig-iron rates,
because of the price, etc., but it is stated that they did not make out
a sufficiently strong case, and their petition for the appHcation of pig-
iron rates will not be granted.
RATES ON CAR WHEELS FROM FORT WAYNE.
Mr. BiHLER. I have succeeded in arranging to have the special
low rates on car wheels from Fort Wayne canceled, effective June 15,
and, in fact, after that date, official classification wiU obtain from
Fort Wayne the same as from Pittsburgh.
RATES FROM BUFFALO AS COMPARED WITH PITTSBURGH.
Mr. BiHLER. At a joint meeting at Buffalo on May 4, the question
of lower rates on iron and steel articles from Buffalo to Pittsburgh
district and in effect from Pittsburgh to Buffalo district was con-
sidered and the Buffalo lines agreed to cancel their present low rates,
and it is presumed that by July 1, rates will be the same in both
directions.
UNION RAILROAD PER DIEM.
Mr. BiHLER. There was a meeting held in the Union Station, Pitts-
burgh, April 26, which was called by Arthur Hale, chairman of the
car efficiency committee of the American Railway Association, to
consider revision of the Union Railroad Terminal reclaim. After the
matter was thoroxighly discussed from every standpoint, it was
decided to let the Union continue under the present arrangement,
namely, five days as reclaim for six months, at the expiration of
which period another meeting will be called to again consider the
question of revising the per diem reclaim now granted the Union.
Statement of cars and tonnage over B. & L. E. from constituent
companies for April, 1909, is attached to the minutes.^
UNITED STATES STEEL, COKPOEAXION. 3991
Statement of cars and tonnage over E. J. & E. from constituent
companies for April, 1909, is attached to the minutes.
TERMINAL ALLOWANCES.
Mr. BiHLER. The new terminal allowance granted to the Union
Railroad, namely, 16 cents per ton on finished material, and 10 cents
Eer ton on rough freight, has been made retroactive to April 1, 1909,
J aU the interested roads. The JSnal report of the engineering com-
mittee should now be in the hands of the railroad terminal committee,
and after the report has had fuU consideration and dehberation by
the latter committee we are hopeful that 15 cents per ton allowance
will be granted the Union on all classes of freight, although we felt if
all the roads are ready and willing to increase the figures on the
strength of the committee's findings.
Mr. Townsend sent word that the engineering committee, consisting
of Mr. John F. Wallace, J. T. Odell, and G. H. Kimball, filed their
final report with Chairman WiUiam Hodgdon on last Friday, May 14,
and there will undoubtedly be a meeting of the general committee
called in the near future to determine what wiU be done with the ter-
minal allowances, and the indications are that if the railroads are
foverned by the report of the engineering committee that there will
e an increase instead of a reduction in the allowances.
INDEPENDENT STEEL INTERESTS.
Mr. Townsend forwarded the following inquiry; It was my under-
standing that ^.t the meeting held in March that it was decided and
thoroughly understood by all members of this committee, that there
would be no communication taken up by any one of us with any of
the so-called independent iron and steel interests, i. e., that we were
not to ask or give cooperation in any campaign for rate adjustments
with the railroads, but I find that one of our members has taken up
matters of this kind by a circular letter addressed to Messrs. Ogden
Armour, Ealston Kennedy Oxtoby, Youngstown Sheet & Tube Co.,
as well as the members of this committee.
I would like to be set right on this subject. Is it the plan to agree
here and then for one of our members to break out and take inde-
pendent action ? The policy adopted by this committee I regarded
as very important and intended to carry it out without a murmur,
although some very important matters from a pipe standpoint have
come up recently where the other manufacturers of wrought pipe
could be of assistance, but I have said nothing.
The Chairman. I do not understand that there is to be any devia-
tion from what was agreed to at the March meeting, and would cau-
tion all of the members not to get mixed up with outside concerns
at this time and will ask Mr. Young to explain the situation to Mr.
Townsend.
Chicago, III.,
Tuesday, June 15, 1909 — 9.30 a. m.
The ninetieth meeting of the Traffic Association, held in the offices
of the Illinois Steel Co., room 1446, Commercial National Bank
Building.
Ilnltlalea: W. B. B., E. W., J. D. C, T. A.)
Present traffic managers of various companies.
3992 UNITED STATES STEEL COEPOEATION.
TERMINAL ALLOWANCES.
There appearing to be no uniformity in the method of handling
intermUl charges by the various termmal roads, the chairman ap-
pointed a committee of Messrs. J. F. Townsend, chairman, L. G.
Bihler, J. A. Coakley and F. T. Bentley to meet with their auditors
and attorneys to see if they could not devise some uniform method
of charging and handling intermill business, and to endeavor to report
at the next meeting.
A statement of cars and tonnage over the E., J. & E. Ry. from con-
stituent companies for May, 1909, is attached to the minutes.
A statement of cars and tonnage over the Bessemer & Lake Erie
Railroad from constituent companies for May, 1909, is attached to
the minutes.
MILLING IN TRANSIT.
Mr. Belsterling. The milling in transit arrangement at Elmira
plant has been revised both by the Erie and B. L. & W. Railroads,
so as to admit of maufacturing en route to all points, including New
England territory. Also the milling in transit tariffs at Trenton,
Edge Moor, Pencoyd, Canton, Toledo, Detroit, are now in good shape.
REDVCED rates ON CAR BOLSTERS.
This matter was discussed very fully, after which the following
resolution was adopted: "Resolved, That we stand for a principle of
equitable rates, and if lower rates are made, to others than ourselves,
we \vill demand similar rates, and to that end will unanimously sup-
port our railway officials."
WEIGHTS ox SAND PIG IRON.
Mr. BiHLEE. The question is being agitated in the Pittsburgh dis-
trict of discontinuing basis of charging on rate of 2,268 pounds for a
ton of sand pig iron and making basis 2,240 pounds same as cast pig
iron. The Consolidated Steel Co., however, feels that 2,268 pounds
basis should be continued on sand pig iron, as the diiference of 28
pounds does not cover the weight of sand, and as opportunity offers
we will take this position with railroads.
RATE ORE TO DONORA.
]\Ir. Collins. In regard to the shipment of ore to the American
Steel cS; Wire Co., Donora, which is exclusively a Pennsylvania Rail-
road point, the ore being handled at the central furnaces of the Ameri-
can Steel & Wire Co. is not of the same grade as the ore handled at
Donora, and therefore can not be forwarded from central furnaces.
There is a rate in effect to the Pittsburgh district in which the
Pennsylvania Railroad participates from the National Dock at
Lorain, but it is not in effect at Donora, and will ask if it could be
arranged to get the rate to Donora via the National Dock.
The matter was left in the hands of Messrs. Townsend and Davis.
united states steel cobpoeation. 3993
United States Steel Corporation,
Traffic Association,
Pittsburgh, June 24, 1909.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Supplement to minutes of traffic association dated June 15, 1909.
uniform car service.
Petition was submitted to the Interstate Eailroad Commissioners
at Washington, being held June 4 and 5, concurred in by the railroad,
for particular rules and conditions in the Pittsburgh district and
valleys and for uniform car service regulation.
average freight rates.
Mr. Bihler. The entire work on average freight rates has been
completed, data assembled, statements made up, and copies sent to all
members of the traffic committee.
RATES — BUFFALO-PITTSBURGH TO NORTHEASTERN PENNSYLVANIA
LINES.
It was reported that the Pittsburgh lines had finally arranged to
put in force from the Pittsburgh district to northeastern Pennsylvania
points as result of pressure brought to bear, rates not greater than
-those which have prevailed from Buffalo on iron and steel articles
and on steel rails, the position of the Pittsburgh interests being to
insist on relative rates with Buffalo at all times.
STEEL RAIL RATE ADJUSTMENT.
Bethlehem, Sparrows Point, and Steelton. It was reported that
the communications were, this matter had been sidetracked and
revisions asked for by eastern mills would probably not be granted,
and if any revisions at all they would only cover radical inconsistency.
Wednesday, July 21, 1909 — 10.30 A. m.
The ninety-first meeting of the traffic association held in room 1124,
Cortlandt Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
RATES TO southern POINTS.
Mr. Young forwarded the following: The northern lines have found
Eroposition to make their rates from Chicago gas belt, Ohio, Pitts-
urgh, and eastern territory on uniform basis of 11 cents per lOO
{)ounds over Cincinnati, would not work out, and they now have
orce at work in an effort to work out plans which will probably make
11 cents from Chicago to Pittsburgh and east over Cincinnati, and
3994 UNITED STATES STEEL COBPORATION.
about 9i cents from lower Indiana gas belt, 11 cents from upper
Indiana gas belt, 11 cents from upper Ohio points, and 8 to 8i cents
from middle and lower Ohio points over Cincinnati. They hope to
work out this basis within next few days, then have a meeting at which
the matter will be definitely settled.
EXTENSION OF SEABOARD TEEKITORT RATES.
This matter was discussed very carefully and fully, after which the
following resolution was submitted and unanimously adopted:
WTiereas the rate basis to Texas is, and has been for Bome time past, very much out
of line, and the interior mills have been shut up; and
Whereas the steamship lines insist upon extending the seaboard territory to include
Pittsburgh and Buffalo; and
Whereas the seaboard lines also insist upon making from their territory the same
rates as applied from Chicago; and
Whereas discussion develops that all of the Pittsburgh producing companies use
Texas for their surplus output, and can not under present conditions compete with
seaboard mills: Therefore
Resolved, That it is the unanimous vote of this committee that we favor the exten-
sion of seaboard territory to Pittsburgh rate points at rates not less than those applying
from Chicago.
STEEL BARGES.
This question was gone over, and the following resolution was sub-
mitted and unanimously adopted:
Resolved, That the traffic committee indorses and recommends the proposition now
before the corporation concerning the construction of steel barges for Ohio and MiBsis-
sippi River traffic, viz: 65 per cent of the present freight rates to the carrier for towing
the loaded barges and empties, and 35 per cent to the owner of the barges, the same
division of revenue to apply to north-bound cargo.
The existing contracts as to freight rates to remain as they are, and the barges to be
used exclusively by steel corporation companies, it being the unanimous opinion that
with the advent of steel barges immediate reductions can be made in insurance costs
and eventually reductions in freight charges.
A statement of cars and tonnage over E. J. & E. from constituent
companies for June, 1909, is attached to the minutes.
A statement of cars and tonnages over E. & L. E. from constituent
companies for June, 1909, was attached to the minutes.
RATES ON IRON AND STEEL ARTICLES FROM INDIANA POINTS.
It was reported that lines from Fort Wayne, Vincennes, Terre
Haute, etc., have advanced their special iron and steel rates to certain
Central Freight Association territory to sixth-class basis, effective
July 1, and they promise to make further advance to the fifth-class
basis January 1 next. It seems that they could not well make the
complete advance to fifth class at once.
INFORMAL REPARATION CLAIMS.
The special committee of trunk lines and Central Freight Associa-
tion railroads, who had up in March with the Interstate Commerce
Commission the question of a modified ruling on informal reparation
claims, has gotten from the commission a modified ruling covering all
special reparation claims, and having specific reference to maintenance
UNITED STATES STEEL OOEPORATION. 3995
of specific rates. This makes it easier to get through a large number
of claims which the various subsidiary companies have been holding
up. The commission is willing to permit the railroads to refund ap-
parent overcharges without specifically requiring in such case that the
rate to which reduction is made be kept in force for a year, as long as
they keep in a relative rate.
TERMINAL ALLOWANCES.
Mr. TowNSEND. The special committee to consider the question of
intramill switching by terminal raihoads he'd a meeting in Pitts-
burgh June 28. The question of estabhshing higher minimum rates
for intramill switching with a view of not penalizing the industrial
plant for services they could lease locomotives for and handle at
actual cost was presented and discussed from aU standpoints.
A proposition was made of adopting the basis of rates in effect for
the lUinois Steel Co.'s intramill work of $1.50 per car that is in effect
on steel products making the bUlet rates higher, but this met with op-
Eosition from those where it has been customarjr for the industry to
ave the terminal road perform the interior or intramill work, con-
tending that such services should be settled for at cost.
The purpose of the committee to have higher rates estabhshed for
the intramill work in order to justify the increased terminal allow-
ances have been made to some of the terminal railroads, seemed to be
objected to because it would establish a uniform rate for intramill
service, although the three terminal raihoads in interest are being
allowed identically the same basis of rates on interchange traffic.
OAK SERVIOE ON LAKE COAL.
New rules intended to be made by the railroad allowing seven days
free time on each car.
RATE IRON ORE LORAIN TO DONORA.
Mr. TowNSEND. The committee to take up the question of estab-
lishing the Pittsburgh freight rate on iron ore from the National Dock,
Lorain, Ohio, to Donora, Pa., was taken up with the lines in interest,
and the Pittsburgh basis of rates will be estabhshed, effective August
2, 1909, i. e., when the revised rates go into effect. This was the
earliest date that the change could be made.
A statement of car service per diem debits and credits of various
companies for July 20, 1907, is attached to the minutes.
Monday, August 23, 1909 — 1 p. m.
The ninety-second meeting of the TraflB.c Association, held in D. M
& N. Ry. Co. private car Frontenac, at Hibbing, Minn.
(Initialed: W. B. S., E. W., J. D. C, T. A.]
Present : Traffic managers of various companies.
car SERVICE ILLINOIS STEEL CO.
Mr. Bentley. In this territory we are working under straight 48-
hour basis demurrage rules, as our plants have no terminal raflroads.
Our fuel requires much longer railroad haul than other corporation
31572— No. 53, pt. 2—12 17
3994 UNITED STATES STEEL COBPOBATION,
about 9 J cents from lower Indiana gas belt, 11 cents from upper
Indiana gas belt, 11 cents from upper Ohio points, and 8 to SJ cents
from middle and lower Ohio points over Cincinnati. They hope to
work out this basis within next few days, then have a meeting at which
the matter will be definitely settled.
EXTENSION OP SEABOARD TEEEITORT RATES.
This matter was discussed very carefully and fuUy, after which the
following resolution was submitted and unanimously adopted:
Whereas the rate basis to Texas is, and has been for some time past, very much out
of line, and the interior mills have been shut up; and
Whereas the steamship lines insist upon extending the seaboard territory to include
Pittsburgh and Buffalo; and
Whereas the seaboard lines also insist upon making from their territory the same
rates as applied from Chicago; and
Whereas discussion develops that all of the Pittsburgh producing companies use
Texas for their surplus output, and can not under present conditions compete with
seaboard mills: Therefore
Resolved, That it is the unanimous vote of this committee that we favor the exten-
sion of seaboard territory to Pittsburgh rate points at rates not less than those applying
from Chicago.
STEEL BARGES.
This question was gone over, and the following resolution was sub-
mitted and unanimously adopted:
Resolved, That the traffic committee indorses and recommends the proposition now
before the corporation concerning the construction of steel barges for Ohio and Missis-
sippi River traffic, viz: 65 per cent of the present freight rates to the carrier for towing
the loaded barges and empties, and 35 per cent to the owner of the barges, the same
division of revenue to apply to north -bound cargo.
The existing contracts as to freight rates to remain as they are, and the barges to be
used exclusively by steel corporation companies, it being the unanimous opinion that
with the advent of steel barges immediate reductions can be made in insurance costs
and eventually reductions in freight charges.
A statement of cars and tonnage over E. J. & E. from constituent
companies for June, 1909, is attached to the minutes.
A statement of cars and tonnages over E. & L. E. from constituent
companies for June, 1909, was attached to the minutes.
RATES ON IRON AND STEEL ARTICLES FROM INDIANA POINTS.
It was reported that lines from Fort Wayne, Vincennes, Terre
Haute, etc., have advanced their special iron and steel rates to certain
Central Freight Association territory to sixth-class basis, effective
July 1, and they promise to make further advance to the fifth-class
basis January 1 next. It seems that they could not well make the
complete advance to fifth class at once.
INFORMAL REPARATION CLAIMS.
The special committee of trunk Unes and Central Freight Associa-
tion raifroads, who had up in March with the Interstate Commerce
Commission the question of a modified ruling on informal reparation
claims, has gotten from the commission a modified ruling covering all
special reparation claims, and having specific reference to maintenance
UNITED STATES STEEL OOKPOEATION. 3995
of specific rates. This makes it easier to get through a large number
of claims which the various subsidiary companies have been holding
up. The commission is willing to permit the railroads to refund ap-
parent overcharges without specifically requiring in such case that the
rate to which reduction is made be kept in lorce for a year, as long as
they keep in a relative rate.
TERMINAL ALLOWANCES.
Mr. TowNSEND. The special committee to consider the question of
intranull switching by terminal railroads he'd a meeting in Pitts-
burgh June 28. The question of estabhshing higher minimum rates
for mtramdl switching with a view of not penalizing the industrial
plant for services they could lease locomotives for and handle at
actual cost was presented and discussed from all standpoints.
A proposition was made of adopting the basis of rates in effect for
the Illinois Steel Co.'s intramUl work of $1.50 per car that is in effect
on steel products making the billet rates higher, but this met with op-
Eosition from those where it has been customarjr for the industry to
ave the terminal road perform the interior or intramill work, con-
tending that such services should be settled for at cost.
The purpose of the committee to have higher rates estabhshed for
the intramill work in order to justify the increased terminal allow-
ances have been made to some of the terminal railroads, seemed to be
objected to because it would establish a uniform rate for intramill
service, although the three terminal railroads in interest are being
allowed identically the same basis of rates on interchange traffic.
OAR SERVIOE ON LAKE COAL.
New rules intended to be made by the railroad allowing seven days
free time on each car.
RATE IRON ORE LORAIN TO DONORA.
Mr. TowNSEND. The committee to take up the question of estab-
lishing the Pittsburgh freight rate on iron ore from the National Dock,
Lorain, Ohio, to Donora, Pa., was taken up Avith the lines in interest,
and the Pittsburgh basis of rates will be estabhshed, effective August
2, 1909, i. e., when the revised rates go into effect. This was the
earliest date that the change could be made.
A statement of car service per diem debits and credits of various
companies for July 20, 1907, is attached to the minutes.
Monday, August 23, 1909 — 1 p. m.
The ninety-second meeting of the Traffic Association, held in D. M
& N. Ry. Co. private car Frontenac, at Hibbing, Minn.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present : Traffic managers of various companies.
CAR SERVICE ILLINOIS STEEL CO.
Mr. Bentley. In this territory we are working under straight 48-
hour basis demurrage rules, as our plants have no terminal railroads.
Our fuel requires much longer railroad haul than other corporation
31572— No. 53, pt. 2—12 ^17
3996 UNITED STATES STEEL. COEPOBATION.
miUs, and the consequent greater liability of unequal movement,
forcing us to carry a greater amount on cars than would be necessary
with a shorter movement, as it is physically impossible to unload and
reload on short notice sufficient to keep the furnaces in operation.
The other mills of the corporation as a rule have some form of
average demurrage which helps to equalize, and those companies
Protected by their own terminal railroads offset the demurrage paid
y the per diem reclaim allowed the terminal roads by the trunk-line
companies.
Under these conditions our mills can never have any credit offset
against the demurrage we pay.
I don't see how under our working conditions we can ever hope to
have any but a large debit balance until the E. J. & E. K. R. puts
into effect an average plan of demurrage, which, if done, will greatly
reduce the debit balance.
The Chairman. The committee of Messrs. Bentley and Learned
handling this matter will be continued until the next meeting, when
we will be pleased to have a report giving an analysis of the car-
service charges.
LAKE KAIL KATES.
Mr. BiHLEK. On February 16, 1907, an understanding was reached
with the Cambria Steel Co. and Lackawanna Steel Co. that on cargo
shipments of rails on the Great Lakes from all Lake Michigan and
Lake Erie ports to all Great Lake ports, except Lake Ontario, the
rate would be 90 cents per gross ton alongside dock at the destination.
We have been held up to as high as $1.40 on some shipments
recently and are of the opinion that the steel corporation should
arrive at some new understanding and not use the 90-cent rate any
longer.
The Chaikman. I would leave this matter in the hands of Messrs.
Bihier, Bentley, and Townsend to get in touch individually with the
other producing companies and endeavor to adjust the question.
A statement of cars and tonnage over the B. & L. E. R. R. from
constituent companies for July, 1909, is attached to the minutes.
A statement of cars and tonnage over the E. J. & E. R. R. from
constituent companies for July, 1909, is attached to the minutes.
WAVERLT WAREHOUSE.
Mr. BiHLER. We have succeeded after some effort in gettrog the
Peimsylvania Railroad to estabhsh a storage-in-transit arrangement
at Waverly, N. J., on both domestic and export carload business,
where the Pennsylvania system receives a total revenue haul or long
haul, which is 1^ cents better than the present raihoad arrangement.
The new arrangement will take effect at an early date.
LONE STAR DESPATCH.
Mr. Blhler. The Carnegie Steel Co. is ignoring the requests re-
ceived from the Lone Star Despatch or from customers to accept
shipping instructions on Texas business from the Lone Star Despatch
people, as to consent to this would soon take out of our own ends
the routing of Texas business, which we want to continue to sell
UNITED STATES STEEL OOEPORATION. 3997
delivered. It was stated that this was the position of other con-
stituent companies.
Statement of car service per diem of various companies, showing
debits and credits, August 16, 1909, is attached to the minutes.
Wednesday, September 15, 1909 — 10.30 a. m.
The ninety-third meeting of the Traffic Association, held in room
1124, Cortlandt Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.)
Present: Traffic managers of various companies.
RATES TO PACIFIC COAST.
This matter was discussed very thoroughly, after which the follow-
ing resolution was offered and unanimously adopted:
Whereas the reduction in duties on iron and steel articles has already resulted in a
considerable importation from foreign countries to the Pacific coast, with prospects of a
continued increase in such foreign competition: i
Resolved, That we ask the railroads for a reduction in freight rates to the Pacific coast
of $3 per ton on iron and steel articles, except tin plate, and $1 per ton on tin plate;
all minimum per car to be advanced to 40,000 pounds under present tariffs, except on
woven-wire fencing.
The adjustment in rates asked for covers only a portion of the
reduction in prices caused by the lower duties, and it is felt that in
justice to American manufacturers the railroad should stand a share
of this burden.
RATES, NEW YORK TO GALVESTON AND TEXAS CITY.
Mr. BiHLER. The Mallory & Morgan Line have increased their rates
on iron and steel articles from New York to Galveston from 25 cents
to 15 cents per ton, effective as of September 15, and the Texas City
Steamship Co. have also followed suit and advanced their rate from
New York to Texas City to the same figure as the other line, this not-
withstanding the fact that their previous advices were to the effect
that they would act independently and not be governed by the actions
of the other lines.
Mr. Young. There will not be any advance in tin-plate rates in
connection with the Texas City Steamship Co.
SCRAP-IRON RATES.
It was reported that the question of scrap-iron rates from Indiana
gas belt to Chicago and Gary was still under consideration, the Ameri-
can Sheet & Tin Plate Co. taking the position that rates should be
the same both for northbound and southbound, the rates as they
now stand being considered discriminatory.
ILLINOIS STEEL CO. CAR SERVICE.
Mr. Bentley. Every effort possible is being made to reduce the
amount of car service paid by the Illinois Steel Co.
3998 UNITED STATES STEEL CORPOKATION.
REDUCTION IN RATES, MINNEAPOLIS TO GLOBE, AEIZ.
In the matter of rates in Globe, Ariz., Mr. Belsterling reported that
these rates have been adjusted on a proper relative basis, now placing
Minneapolis $1.68, Chicago $1.59, and Pittsburgh $1.66. This is
satisfactory to all the companies concerned.
Statement of car service per diem debits and credits of various
companies for September 14, 1909, is attached to the minutes.
Wednesday, October 20, 1909.
The ninety-fourth meeting of the Traffic Association, held in room
1124, Cortlandt Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
CAR SERVICE PER DIEM.
Mr. Bentley. I desire to state that we have gone into the question
of car service at the Illinois Steel Co. plants in a vigorous maimer, and
our people figure that it costs more to unload than to hold the cars.
Out of $13,633 car service during the month of September there was
$1,311 per diem paid to railroads outside of the corporation on the
basis of 25 cents a day per diem. An analysis of the figures showed
that there was v ery little demurrage on long-haul material, the bulk
of the car service being on local traffic between mills in the Chicago
district. At our Milwaukee plant we paid out $1,150, due to the fact
that we have no assembling warehouse, and it is necessary to start
loading at one part of a mill and then have it switched and held until
some more is ready. Recommendation has been made to estabUsh
a central storage warehouse, so that materials can be held until there
is a complete load.
In answer to Chairman Keefe's inquiry as to the debit shown by
the Carnegie Steel Co. on per diein, Mr. Bihler explained that since
August 1 his company had been working on a ii-d&j per diem basis,
but on account of insufficient motive power and congestion, the cars
could not be moved any faster, although 4^ days was perhaps all the
time that was needed with sufficient motive power at all times.
rates to pacific coast.
Mr. Bihler. A request has been made for reduction in rate on iron
and steel articles to Pacffic coast from 80 cents to 65 cents per 100
pounds, and also appUcation for reduction in rate on rails from
Chicago to Pacific coast from $11 to $10 per gross ton, which would
reduce the rate from Pittsburgh to $12.50 per gross ton. The matter
would probably be considered by the transcontinental lines at the
meeting next month, but meantime interested manufacturers will
probably be called into conference by the interested roads some time
in the latter part of this month.
Mr. TowNSEND. While there has been a reduction of 50 per cent in
the import duties applying on tubular goods, we think that it would be
unwise to ask the transcontinental lines for a reduction in the freight
rates on wrought pipe to the Pacffic coast at this time. The cast-iron
UNITED STATES STEEL OOEPOBATION. 3999
pipe interests have made an application for a reduction of $2 per ton
m the freight rate on cast-iron pipes to the Pacific coast territory.
We would prefer to wait and see what action is taken in regard to it,
for no doubt the railroads at interest will protect wrought pipe and
keep the two commodities on the same basis of rates.
The whole question of reduction ia rates to the Pacific coast was
gone over and as it developed that the American Sheet & Tin Plate
Co., American Bridge Co., and Carnegie Steel Co., were anxious for a
reduction, the chairman appointed Mr. Young as chairman to take
up the rate adjustment question, each company to present their own
arguments, but to cooperate with Mr. Young.
Statement of cars and tonnage over B. & L. R. R. from con-
stituent companies for September, 1909, is attached to the miautes.
Statement of cars and tonnage over E. J. & E. R. R. from con-
stituent companies for September, 1909, is attached to the minutes.
RATE ON SULPHATE OP lEON.
Mr. Young. Following the recent reduction to St. Louis it is pro-
posed that we go after and try to obtain a uniform basis of ap-
proximately 83.33 per cent, of the sixth-class rates on sulphate of
iron. As soon as the recently authorized rates are made effective
Messrs. Coakley, Davis, KomdorflF, and myself wUl go over the
matter and take concerted action.
Statement of car service per diem debits and credits October 19,
1909, is attached to the minutes.
Thursday, November 18, 1909.
The ninety-fifth meeting of the Trafiic Association, held in room
1817, Empire Building, New York.
[Initialea : W. B. S., E. W., J. D. C, T. A.)
Present : Traffic managers of various companies.
scrap-iron RATES.
Mr. Young. Rates have been authorized from the Indiana gas
belt to Chicago and points in that vicinity on the same basis as they
have been in effect southbound — a reduction of from $1.50 to $1.25
per ton.
RATES ON iron AND STEEL TO UPPER MISSISSIPPI RIVER POINTS.
It was reported that objections were raised by the cargo commercial
bodies to the propositions to make rates on the basis of approxi-
mately one-halt cent over St. Louis. It is understood that last week
the raUroads gave notice that the new basis would go into effect
regardless of the objections, the effective date to be announced later.
IMPORT RATES.
Mr. Mack. A meeting of the Trunk Line Association was held
November 10 to discuss import rates, it being the intention to cancel
on January 1 practically aU special import commodity rates with
the exception or a few articles, particularly raw materials. Another
4000 UN [TED STATES STEEL COEPOEATION.
meeting will be held on November 19, jointlywith the Gulf lines, and
if uniform action can be obtained there is no doubt but what rates will
be pulled out January 1 or shorter thereafter.
Mr. CoAKLEY. I desire to call attention to the fact that Mr. Korn-
dorff has succeeded in getting a reduction in the import rate on
spelter from Jersey City to Allentown, making the rate $1.40 or a
reduction of 60 per cent.
RATES, NEW YORK TO GALVESTON AND TEXAS CITY.
Mr. Bates. The Morgan and Mallory lines will advance our rates
from 15 cents to 18 cents per 100 pounds, effective November 25,
to Galveston, Tex. This appHes on naUs, staples, wire (iron or steel)
plain, barbed or pointed wire, fence strand, straight or mixed carloads.
Secretary Belsterling forwards report statiag that Mallory and
Morgan lines have increased their rates on iron and steel articles from
15 cents to 17 cents, effective November 15.
Mr. Young. We have received advice from the Texas City Steam-
ship Co. that the rate on galvanized sheets will be advanced to 25
cents per 100 pounds.
fabricating in transit.
Mr. Belsterling forwarded report stating that the fabricating-in-
transit arrangement at Pencoyd, Edge Moor, and Trenton has been
revised to include points on Long Island Railroad, Northern Cen-
tral, W. J. & S., N. Y., P. & N., P. B. & W., West Shore, R., F.
& P., Cumberland Valley, New York & Long Branch, and Staten
Island Rapid Transit Railroad.
A statement of cars and tonnage over the B. & L. E. R. R. from
constituent companies for October, 1909, is attached to the minutes.
A statement of cars and tonnage over the E. J. & E. R. R. from
constituent companies for October, 1909, is attached to the minutes.
rates on fabricated material.
The Chairman. The question of lower rates on fabricated mate-
rial than apply on raw material has come up and it is the policy of
the corporation that fabricated rates should not be less than raw-
material rates, and instructions are to clean up as promptly as
possible.
A statement of car service per diem debits and credits of various
companies for November 17, 1909, is attached to the minutes.
Wednesday, December 15, 1909 — 11 A. m.
The ninety-sixth meeting of the Traffic Association, held in room
1616, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.)
RATES ON SULPHATE OF IRON.
Report was made that foUowuig the adoption of 83.33 per cent
of sixth-class rates on sulphate of iron between Central Freight
Association points similar apphcation has been made for same rates
on trunk-line territory.
UNITED STATES STEEL COEPOEATION. 4001
Statement of cars and tonnage over B. & L. E. E. R. from con-
stituent companies for November, 1909, is attached to the minutes.
Statement of cars and tonnage over E. J. & E. R. R. from con-
stituent companies for November, 1909, is attached to the minutes.
RATES ON OAR WHEELS AND AXLES.
Mr. BiHLER. The rate on car wheels and axles, carloads, from
the Pittsburgh district to California terminals, has finally been
reduced to 80 cents per 100 pounds.
RATES ON RAILS.
It was reported arrangements were made to cancel proportional
rate Pittsburgh to Virginia cities, which would enable through rates
to Virginia-Carolina territory to be based on lowest combination,
and that it was also arranged to have rates to upper Mississippi
River crossings published on basis of 10 cents per gross ton over
St. Louis. Through rates are to be pubHshed from Pittsburgh dis-
tricts to points on Virginian Railway.
STEEL BARGES.
It was reported that the United States Steel Corporation has
definitely authorized for the construction of 10 steel barges, cargo
box type, to carry iron and steel products on the Ohio and Mississippi
Rivers, to be built next year, principally for the benefit of the Cfar-
negie Steel Co., American Bridge Co., American Steel & Wire Co.,
National Tube Co., and any others who have business to ship.
CLASS RATE, BUFFATO TO C. & O. RAILWAY POINTS.
Mr. Bihler called attention to the fact that the B., R. & P. Railway
have class rates in effect from Buffalo to certain Chesapeake & Ohio
Railway points which are lower than class rates from Pittsburgh,
which is quite disadvantageous where rates or raUs on class rates or
where rail fastenings which take class rates are involved. He has
not expected lower rates from Pittsburgh, but has had up with
B., R. & P. the question of their discontinuing rates from Buffalo
to this territory which are lower than from Pittsburgh, and they
have promised to withdraw these low class rates as promptly as
possible and put them on the proper relative basis to Pittsburgh.
PIG-IRON RATES.
Mr. Bihler reported that the rate on pig iron from Pittsburgh and
Wheeling district to Boston and Boston rate points had been reduced
from S2.85 to $2.65 per gross ton and that he now has up the question
of the rate from Mahoning and Shenango Valley districts beingreduced
to $2.05 per gross ton, since this territory should only take 40 cents per
ton over Pittsburgh.
4002 UNITED STATES STEEL COEPOKATION.
CAST AND WROUGHT PIPE.
Mr. TowNSEND. At a meeting called by the railroads that was held
in Chicago last Monday to consider the question of equalizing the rates
on cast and wrought pipe there were three representatives of cast-iron
pipe interests present. In the discussion, with chairman of the meet-
mg insisting upon getting a positive expression from Mr. W. E. Clow as
to why there would be any objection to an advance, provided the ad-
vanced rates were put in force from all cast-iron pipe producing terri-
tories, Mr. Clow stated that it would result in closmg the cast-iron pipe
foundries in the Central Freight Association territory, because the same
rates apphed to-day from St. Louis throughout the Southwest that
are in effect from Birmingham, so that the rates up to East St. Louis
are a handicap to-day. That is also true of the wrought-pipe rates;
they are just the same from .Birmingham as from St. Louis.
It seems to be the consensus of opinion of the railroad men that it
would simply be out of the question to make any further advances
in the rates on cast-iron pipe, and the whole question has been referred
by the special conmiittee to the chief traffic officials.
Thursday, January 20, 1910 — 10 a. m.
The ninety-seventh meeting of the Trafiic Association, held in the
offices of the Tennessee Coal, Iron & Railroad Co., Birroingham, Ala.
[Initialed : W. B. S., E W., J. D. C, T. A.]
PER DIEM.
It was reported that the various railroads were unable, through lack
of sufiicient votes, to agree on a change in their per diem rate, and that
it win remain at 25 cents per car per day until further action by the
American Railway Association. The vote on the rules of $5 per car
per day was also lost.
AMENDMENTS TO INTERSTATE COMMERCE COMMISSION LAW.
The following report submitted by Mr. Bentley, chairman of the
special committee on amendments to the Interstate Commerce law,
was unanimously adopted:
The special committee appointed by the chairman to consider and report at this
meeting our views on the proposed interstate commerce legislation met in Pittsburgh
on December 22, Messrs. Bellsterling, Bihler, Baird, and myself, the committee, all
present. There were also present Messrs. Young, Coakley, Komdorff, and Towrisend.
The recommendations of the Interstate Commerce Commission to Congress, the
newspaper report, and the attitude of President Taf t and Attorney General Wickersham,
and the views as expressed by various industrial organizations, were carefully gone over
and the following is the unanimous report of the committee:
1. The committee beUeves, first, that the shipper should have the unqualified right
to route his own business.
Reason: This is property right of the owner and is a commercial asset of great value.
2. We believe that me public should have the same right of appeal which the carriers
now have under the law.
3. We favor the organization of a Commerce Court as a court of appeals.
Reason: In our opinion this will tend to expedite disputed cases and get a more
uniform line of decisions than may be obtained through the various circuit courtB
scattered throughout the country.
UNITED STATES STEEL GOUPOKATION.
4003
4. We favor the allowing of the injunctive power, which at present rests in the vari-
ous district Federal courts, to remain where it now is, rather than placing it in the hands
of the Interstate Commerce Commission.
Reason: This enables the public to reach the courts in their districts with less time,
trouble, and expense, and leaves the matter in the hands of an unbiased tribunal,
rather than in the hands of the commission, who are already overburdened with various
functions.
5. We favor the legalization of railway associations for the purpose of conferring on
rates and classifications, rules and regulations, provided the right of individual action
is preserved and such organizations are so constituted as not to create either a tonnage
or revenue pool.
6. We favor the proposition that carriers should be compelled to quote correct rates
iu writing on request, and in the event of refusal or failure so to do, that upon complaint
to the Interstate Commerce Commission, and showing of damage, the act should be
treated as a misdemeanor and a fine assessed against defending carrier to be put into
the Treasury of the United States, the amount to be left to the discretion of commission.
7. We do not favor putting initiative power in the hands of the Interstate Commerce
Commission to suspend rates or make orders on their own initiative, but believe that
their powers should be restricted to action only after complaint has been filed.
8. This committee did not consider the question of physical valuation of railways or
governmental control of issuance of railway capital, as these subjects do not come
directly under the head of traflBc conditions.
MILLING IN TRANSIT.
Mr. Bellsterling reported that the commission has informally ap-
proTed the fabricating practice of structural iron. It developed at
the public meeting in Washington last week, as stated by Judge
Clemens, that the commission intends issuing a rule defining the vari-
ous ways in which all milling-in-transit, storage, fabricating, and
substituting arrangements shall be handled. The object of the rules
will be to prevent abuses which existed in other lines of freight.
B. cfc L. E. E. K.
Mr. Baikd. The following is a summary of outbound carload traffic
shipped from the various works on the Union Railroad via our line
during the month of December, 1909, following which is a statement
covering the year 1909, together with a comparison for the preceding
year:
Outbound carload traffic for the month of December, 1909, compared with that of 1908.
From-
Cars.
Tons.
Cars.
Tons.
Edgar Thompson Works
Duquesne Steel Works
Homestead Steel Works
Howard Axle Works
American Steel & Wire Co....
Universal Portland Cement Co
Total
Decrease
213
298
912
60
271
101
7,779
8,978
32,941
2.898
8,458
5,407
1,136
404
903
10
267
116
1,915
921
66, 461
33,046
2,836
48,304
12, 785
27,604
183
5,990
4,741
99,607
4004 UNITED STATES STEEL COEJPOEATION.
Outbound carload traffic for the year 1909, compared with 1908.
From-
1909
Cars.
Tons.
Cars.
Tons.
Edgar Thompson "Works
Duquesne Steel Works
Homestead Steel Works
Howard Axle Works
Carrie Furnaces
American Steel & Wire Co .
Universal Portland Cement Co
Total
Increase
5,194
5,531
12,476
530
7
2,970
2,260
180, 130
408,427
22, 692
330
67,963
74,521
5,616
3,529
8,907
351
842
2,017
1,356
28,968
6,350
976,932
197,781
22,618
225,261
110,479
291.009
15,582
33,064
52,412
51,344
779,151
B. & L. E. E. E. CONNECTIONS.
The following report, submitted by Mr. Baird, the chairman of the
subcommittee appointed at the July meeting to consider the question
of B. & L. E. R. R. connections, was unanimously accepted by the
committee.
Referring to minutes of the traffic committee of July 21, 1909, ex-
tract thereof as follows:
B. & L. E. R. R. connections: It being the consensus of opinion of the traffic com-
mittee that the more B. & L. E. connections the freer opportunity the constituent
companies would have to do business with the B. & L. E. R. R., and also the better
effect it would have on the whole terminal situation, the following committee was
appointed by the chairman to take up the question of increasing the B. & L. E. connec-
tions with the corporation industrial plants in the Pittsburgh district: Messrs. F. C.
Baird, chairman; W. 0. Davis, J. F. Townsend, and L. C. Bihler.
Your committee beg to submit the following report with reference
to the greater tonnage available to and from corporation mills in the
Pittsburgh district through construction of new branch lines or exten-
sions from present tracks of the B. &. L. E. R. R. or Union Railroad:
E. R. R. or Union Railroad:
Statement of tonnage available on account of the several specific
constituent companies.
Eaw
material.
Produc-
tion.
Carnegie Steel Co., Lucy and Isabella furnaces:
Sharpsburg and Etna, Pa
Clairton
National Tube Co., McKeesport, Pa
American Sheet & Tin Plate Co., Vandegritt, Pa. . .
American Steel & Wire Company, Braddock plant
Total
Tom.
1,900,000
1,400,000
1,861,000
450,000
105,000
5,716,000
Tom.
475,000
325,000
616,000
200,000
105,000
1,621,1
UNITED STATES STEEL COBPORATIOX. 4005
AXAITSIS.
Eaw material: Tons.
Iron ore 2. 690, 000
Limestone 615, 000
Coke 1,293,000
Metal 455,000
MiscellaneouB 914, 000
5,716,000
Manufactured iron, etc 1, 621, 000
Total 7,337.000
ToB. & L. E. R. R., 50 per cent 3,668.000
B. & L. E. p. R. and Union Railroad earnings now paid to other roads. . |2. 500,JOOO
Explanation in detail covering the several proposed track con-
nections :
Sharpsburg and Etna connections could be accomplished by con-
struction of separate branch lines of several miles each; would
effect mechanical movement of intermiU materials with less delay,
etc.; freight revenue thereon approved to corporation railroads.
^NicKeesport connection could be effected by construction of a bridge
across Monongahela River connecting with Union Railroad oppo-
site Duquesne Steel Works, giving to them operation access to addi-
tional railroad facilities, with corresponding rehef from car shortage,
better dispatch on manufactured products, and greater protection
from unfau- rates.
Vandegrift connection could be made by a branch line of approxi-
mately 19 miles, changing from a local station to a common point,
with corresponding benefits.
Braddock connection could be completed by construction of 100
yards of track by Union Railroad after consummation of A. S. & W.
Co., plans which wiU give approach by Union Railroad to their modi-
fied loading tracks and platforms, independent of the property of
other railroads now serving that corporation.
The only obstacle to be encountered here is whether under con-
tract covering crossing of B. & L. E. tracks by Union Railroad,
freight can be interchanged between this plant and B. & L. E. R. R..
but as much is involved to be gained without expense, we believe
every effort should be made to accomplish full interchange.
Clairton connection could be effected by extension of Union Rail-
road 7^ miles, with corresponding benefit and profit to the corpora-
tion.
The Sharpsburg, Etna, Vandegrift, and Clairton extensions would
incidentally make tributary to the corporation railroad facOities
approximate tonnage of bituminous coal amounting to 350,000,000
tons, three-fourths of which is in evidence to-day, based upon actual
drilling of territory, and has been proven to make an ideal coke for
open-hearth purposes, and in any event would in future replace the
rapidly diminishing volimie of Pittsburgh coal now tributary to
present facilities and would tend to increase to a considerable extent
northboimd tonnage, which would cheapen operations of the railroads,
with corresponding increase in profit, and doubtless in time give a
compensating movement northbound, eliminating to material extent
present empty-car movement.
Under present conditions imposed by the interstate law govern-
ing rate operations of railroads, the railroad facilities of the corpora-
4006
UNITED STATES STEEL COEPOBATION.
tion have proven of considerable value by reason of affording pro-
tection from unfair rate adjustments and assisting the obtaining
readjustments of rates given to competitors; consequently any
increase in tonnage and scope of rails may be reflected m increased
ability to better serve interests of subsidiary companies. Therefore
we recommend for most serious consideration any steps that may
accomplish this end, and subscribe to the belief that the greater the
scope of our railroad facilities the greater the measure of our pro-
tection and benefits from more favorable rate adjustments to be
obtained thereby.
A statement of tonnages in carloads forwarded via E. J. & E. by
constituent companies for December, 1909, is attach^ to the
minutes.
The statement shown below was submitted by Mr. Baird :
Comparative statement of iron and steel tonnage forwarded by Carnegie Steel Co., Union
Railroad Mills via B. & L. E. R. R., 190S to 1909, incltmve, gross and net tonscowr
lined.
Period.
Edgar Thom-
son Works.
Duquesne
Works.
homestead
Works.
Howard
Axle Works.
Carrie Fur-
naces.!
Utah.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
1903 ....
7,364
6,678
6,149
4,875
4,915
5,616
5,194
223,013
218,298
198,420
161,809
158,728
225,261
222,869
2,266
1,805
4,502
4,129
3,633
3,629
5,531
62,258
46,243
132,234
130,459
115,750
110,479
180,130
24,288
2 7,180
2 8,247
2 8,527
2 8,076
8,907
12,476
132,688
208,066
260,304
283,942
294,452
291,009
408,427
461
622
1,084
1,367
1,447
351
630
16,006
20,807
41,014
66,482
61,315
15,582
22,692
14,379
16,285
19,982
18,898
18,071
19,246
23,738
433,885
1904
493,414
1905
631,972
1906
631,692
1907
630,245
1908
842
7
33,064
330
675,395
1909
834,448
1903 versus 1909:
3,263
117,872
8,188
276,819
69
6,686
7
330
9,369
399,663
2,170
1,144
1908 versus 1909:
2,092
69,651
3,569
124,424
179
7,110
4,493
166,059
422
2,392
835
32, 734
' Included In Homestead Steel Works to and including 1907.
2 Includes Carrie Furnaces.
Equipment and tonnage of mills.
Mills.
Equip-
ment.
Percent-
age.
Tonnage.
Percent-
age.
Tons per car.
1908
1909
Edgar Thomson Works
6,194
5,531
12,476
. 630
7
2,970
2,260
17.93
19.09
43.07
1.83
.03
10.25
7.80
222,869
180, 130
408,427
22,692
330
67,963
74,621
22.81
18.45
41.81
2.32
.03
6.96
7.62
42.9
32.5
32.7
42.8
47.1
22.8
32.9
40.1
3L3
32.6
Howard Axle Works .
44.3
39.2
American Steel & Wire Co
Universal Portland Cement Co
25.9
37.8
28,968
100. OO
976,932
100.00
33.6
35.9
RATE ON PIPE, IRON, AND STEEL.
Attention was called to the fact that the trunk hnes had issued
tariff extending the application of commodity rates on pipe, iron,
and steel on material up to and including 0.25 carbon, the limit
UNITED STATES STEEL OOBPOBATION. 4007
heretofore having been 0.15 carbon. The Central Freight Associa-
tion hnes have not yet extended their Hmit, and the Pittsburgh lines
recently considered the matter and at their request Mr. Bihler ap-
peared before the Pittsburgh freight committee and gave them infor-
mation on this subject. The Carnegie Steel Co. is satisfied with the
limit of 0.15 carbon.
It was reported that to certain southern territory the rate from
Johnstown was lower than the rate from Pittsburgh on rails, although
they should be the same, and that the Carnegie Steel Co. had suc-
ceeded in having the same rate made from Pittsburgh as from Johns-
town both via eastern and western gateways.
BATES, LOUISIANA AND ARKANSAS POINTS.
It was reported the Morgan Line have issued tariff covering class
and commodity rates from New York and Atlantic seaboard terri-
tory to points in Louisiana and Arkansas, and that under this tariff
all points in Pittsburgh district are included in seaboard territory.
RATES, NORTHEASTERN PENNSYLVANIA POINTS.
It was reported that the Trunk Line Association is making a strong
effort to have Pittsburgh lines restore old rates from Pittsburgh to
northeastern Pennsylvania points of 1^ cents per 100 pounds
higher than from Buffalo, but so far Pittsburgh lines have withstood
pressure and have declined to do so. A firm stand is being made
msisting that Pittsburgh shall have the same basis into this terri-
tory as Buffalo.
BIRMINGHAM SOUTHERN RAILROAD.
The Chairman. You aU have come to Birmingham for almost a
specific purpose. You will be taken over the Birmingham Southern
Railroad, and you will know what the situation is ; it is not being al-
lowed an adequate or fair allowance. As you go over the road to-day,
would be glad to have you watch the various points as they are shown
to you, and compare them with lines in the North in which we are
receiving compensation. If there is anything you don't see or
don't know, ask, that you may be famihar with it. We want you all
to know the exact situation.
February 16, 1910.
The ninety-eighth meeting of the Traffic Association, held in room
1616, Empire BuHding, New York,
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
CANADIAN rates.
Mr. Baird. In relation to question of proposed readjustment of
rates on wire rods from Cleveland, Valleys, and Pittsburgh districts
to various points in Canada, your special committee submit the fol-
4008 UNITED STATES STEEL COBPOEATION.
lowing: A thorough investigation develops that with the establish-
ment of low rates from Cleveland to meet other competition, rail-
roads serving the Pittsburgh district held that the rates must neces-
sarily spread to that district slowly, with a view of protecting nulls
of subsidiary companies located therein. This action was unso-
Hcited, and in view of attitude of Canadian roads and other demands
upon the United States roads for material advantages in said rates,
we subscribe to a proposition to embrace continuation of present
rates from Cleveland and estabhshment of rates from Valleys and
Pittsburgh districts upon a maximum differential of 50 cents per
ton over Cleveland. This differential to be observed as maximum
by reason of being the figure observed in establishment of rates on
steel rails from Pittsburgh district as over Buffalo and should not be
disturbed or any incentive afforded therefor. The billet rates to con-
tinue as at present. The above report was unanimously adopted.
AMENDMENTS TO INTERSTATE COMMERCE COMMISSION LAW.
Mr. Bihler called attention to a bUl now before Congress presented
by Congressman Graham, which requires the carriers to furnish
staldng, lumber, blocking, bracing, etc., for all open-car freight.
The carriers who refuse to furnish this blocking on demand of the
shippers are to be fined, and if the shipper is eventually required to
furnish it himself, that he shall be remibursed a reasonable sum
therefor by the carriers plus the cost of arriving at decision on com-
plaint before the Interstate Commerce Commission. It also amends
section 15 of the Hepburn law on instrumentalities of transportation
furnished by the shipper, maldng it necessary for the shipper first to
demand that the railroad furnish the instrumentahty, and if the
railroad refuses and the shipper is compelled to furnish it himself,
that he should be recompensed therefor the reasonable costs thereof.
This change in wording is to enable the blocking to be run in with
other instrumentalities, but makes it necessary for the shipper to be
refused by the railroad before the shipper can himself volunteer to
furnish the instrumentality of whatever character.
RATE, B. & O. E. R.
Mr. Bihler called attention to the fact that the B. & O. R. R. had
quoted rate on sand from Dunbar, Pa., to Neville Island, Pa., of 80
cents per ton in B. & O. cars and 70 cents per ton in P. & L. E. cars,
to which practice he has objected, as he thinks it wrong in principle
to quote a different rate in the same commodity from the same point
when loaded in different cars, and hopes other traffic managers will
do the same should they be quoted in this way.
RATES ON RAILS, TEXAS POINTS.
Mr. Bihler called attention to the fact that to some points in Texas,
which took higher than the Texas common point rate the differential
oyer Texas inbound rates was higher on business shipped all rail from
Pittsburgh and other points than when shipped via Morgan Line via
New Orleans from eastern points. As an example, the differential
over Texas common points to Pecos, Tex.^ on rails, is 14 cents per
100 pounds on business all rail, while the differential is only 10 cents
UNITED STATES STEEL OOBPOKATION. 4009
above Texas common points on business via Morgan Line via New
Orleans. He has taken up the question of why the differential over
Texas common points all rail should not be the same as via water.
IMPORT RATES.
Mr. Bihler called attention to the fact that although special com-
modity rates on import material had been canceled, effective January
1, from New York, Philadelphia, and Baltimore to Pittsburgh rate
points, he has discovered that there are still special rates in from these
points to eastern Pennsylvania points and that special rate had again
been put in effect by B. & O. m connection with the P. & L. E. to
Monessen. He has taken up the question of having the special rates
put in again to Pittsburgh district, as his company is receiving import
shipments of ferromanganese, spiegeleisen, miorspar, magnesite, etc.
Statement of cars and tonnage over the B. & L. E. E.. R. from con-
stituent companies for January, 1910, is attached to the minutes.
A statement of cars and tonnage of the E. J. & E. R. R. from con-
stituent companies for January, 1910, is attached to the minutes.
HATES, ILLINOIS AND MISSISSIPPI EIVEK CROSSINGS.
Mr. Bentley. Following -the reduction on finished iron and steel
articles to Illinois and Mississippi River crossings there was another
proposition to reduce all pig-iron rates into that territory, but as the
corporation was not shipping any pig iron from eastern inills, I imme-
diately proceeded against this reduction and demanded a reduction
to a maximum of $1 from Chicago and Milwaukee district to Missis-
sippi River crossings and intermediate territory.
CAST AND WROUGHT PIPE.
Mr. Townsend explained the progress that had been made with the
Central Freight Association lines in regard to the equalization of the
cast-iron pipe rates, and reported in detail the result of the meeting
held with the executive committee of the Central Freight Association
lines in Chicago, February 1, pointing out that the railroad representa-
tives raised the question again of such an adjustment, especially in
the proportional rates being used by other iron and steel manufactur-
ers with a view of obtaining similar rates and he requested that each
member of the trafl&c committee express his views on the subject.
Thereupon the chairman called upon each member individually, and
everyone pledged himself not to ask for or even refer to the pipe rates
in any effort to have a readjustment of the rates on articles of iron
and steel manufacture.
A statement of car service per diem debits and credits of various
companies for February 15, 1910, is attached to the minutes.
4010 united states steel coepoeation.
Thuesday, Maech 17, 1910.
The ninety-nintli meeting of the Traffic Association, held in room
1111, Carnegie Building, Pittsburgh.
[Initialed: W. B. S., E. W.,J. D. C, T. A.]
Present: Traffic managers of various companies.
CANADIAN BATES.
It was reported that the question of Canadian rates was held up
temporarily, having been referred back to the Pittsburgh freight com-
mittee, where it is expected the whole question wiU be adjusted satisfac-
torily and reported on within the next two weeks, and the next joint
committee meeting of the railroads will ratify the basis which the
special committee Landed in at the last meeting — the estabhshments
of rates from Valleys and Pittsburgh district, upon a maximum dif-
ferential of 50 cents per ton over Cleveland on wire rods and bUlets.
LAKE BATES.
It was reported that lake rates would be continued the same as last
Sear, the only exception being that on carload shipments, the lake
nes would no longer carry light articles of iron or steel, making it
necessary that carload shipments be forwarded in bundles, packages,
or pieces weighing not less than 15 pounds each. They exclude all
articles from the iron rate; and on such articles they wiU apply the
regular class-rate basis, which wOl make an advance of 2^ cents over
the iron rates.
The lake lines who are members of the Lake Lines Association will
not carry any material which exceeds 35 feet in length, 7 feet in width,
and 7 feet in height ; they have a restricted list wmch makes it neces-
sary for shippers to get special authority when exceeding these
limits.
EXPOET EATE ON COPPER WIEE.
It was reported that the New Haven road proposed to advance the
rates from New England territory to New York, making the carload
rate 11 cents and the less than carload rate 14 cents, and that a pro-
test would be lodged against this advance.
EATE ON COAL, INDrVIDXJAL CAES.
It was reported that the Lorain Steel Co. was paying 30 cents a
ton on coal from their mines on the B. & O. to loungstown. It
was advised that the B. & O; absorbed $2.50 per car switching, but
there was a great deal of trouble in getting cars at the mines. The
matter was taken up with ilr. Matthews of the B. & O. R. R., and a
proposition made that the Lorain Steel Co. would buy their own cars
if the B. & O would make a rate of 15 cents, but the B. & O. took the
stand that preferential rates on coal when loaded in individual cars
could not be justified.
It was advised that other companies had rates on coal and other
commodities when shipped in individual cars, and request was made
UNITED STATES STEEL, CORPORATION. 4011
that the members having such arrangements supply Mr, Porter with
copies or reference to the tariffs.
TEXAS CITY STEAMSHIP CO.
Attention was called to the fact that last November when other hnes
from New York to Galveston raised their rates, Mr. Eowland, of the
Texas City Steamship Co., was approached and he stated that he felt
bound by the agreement to protect aU of the constituent companies
of the corporation, but he is charging higher rates on bars, hoops,
and bands. This matter was left in the hands of the American Steel
& Wire Co. and Carnegie Steel Co. to adjust.
BUFFALO COKE KATES.
It was advised that the Steel Corporation had no connection with
the advance in Buffalo coke rates, it being a question between Bethle-
hem and Buffalo.
A statement of cars and tonnages from constituent companies over
the B. & L. E. R. R. for February, 1910, is attached to the minutes.
A statement of cars and tonnages of the E. J. & E. R. R. from con-
stituent companies for February, 1910, is attached to the minutes.
IMPORT BATES, FERROMANGANESE, FERROSILICON, ETC.
Mr. Bihler reported that he had sucdeeded in arranging with the
B. & O. to reestabhsh the import rates from Baltimore and Philadel-
phia to Pittsburgh and Youngstown district, which were canceled
January 1 of this year, the rates since January 1 having been on
domestic basis. By this new arrangement the rates will again be
made lower on import than on domestic shipments on May 1.
PER DIEM.
It was reported that, effective March 1, the American Railway
Association have ruled that the per diem rate shall be 30 cents per
car per day for the five months of March, April, May, June, and July,
and 35 cents per car per day for the remaining seven months, namely,
January, February, August, September, October, November, and
December.
RATE BASIS, SAND PIG IRON.
Attention was called to the fact that the question would probably
be brought up again soon of making rate on sand pig iron in Central
Freight Association and trunk line territory on basis of gross ton of
2,240 pounds instead of as now on 2,268 pounds. The matter is being
looked into in an endeavor to obtain data on which to base objections
to any change from the present basis.
RATES ON RAILS, LOUISIANA POINTS.
Attention was called to the fact that the Morgan Line was pub-
lishing rates on steel rails and fastenings from New York to Louisiana
points, such as Shreveport, which were lower than the rates from
31572— No. 53, pt. 2—12 18
4012 UNITED STATES STEEL COBPOBATION.
Pittsburgh. The question has been taken up -with the all-rail routes
to see whether they will not take action which will result in Pittsburgh
and other points having rates to this territory which will[be on proper
equality with the rates from New York.
RATES TO MILWAUKEE.
It was reported that the proposition was being discussed of making
the rates from Buffalo, Pittsburgh, and the Mahoning and Shenango
Valleys to Milwaukee the same, but that the Carnegie Steel Co. was
not yet prepared to concede that Mahoning and Shenango Valleys
should not have a differential under Pittsburgh or Buffalo.
A statement of car service per diem debits and credits of various
companies on March 17, 1910, is attached to the minutes.
April 20, 1910.
The one hundredth meeting of the Traffic Association held in room
1616, Empire Building, New York City.
[Initialed: W.'B.[S.,1E. W.,'_J. D. C.i.T.'^A.]
Present: Traffic managers of various^companies.
CANADIAN RATES, BILLETS AND WIRE RODS.
It was reported that the J'ittsburgh freight committee had con-
curred in the proposition which was before the joint Cleveland, val-
leys, and PittsDurgh committees — viz, that the present reduced rates
on billets and wire rods, caused by water competition be continued
in effect from Cleveland, and that the rates from Pittsburgh, Wheel-
ing, and Mahoning and Shenango Valley districts be made on basis
of differential of 50 cents per ton over the Cleveland rates.
WEIGHTS, CANADIAN SHIPMENTS.
Mr. Bihler reported that some initial hues were asking^his com-
pany on Canadian shipments to give gross and tare as well as net
weights on shipping orders and bills of lading, but that since net
weights were given which were actual weights based on scale weights,
he did not think the additional information should be asked and was
endeavoring to avoid having to give same, but if Canadian law
requires the information we will have to supply it.
RATES, PARKEESBUEG, W.[VA.
Mr. Bihler stated that he has made appHcation to the Pittsburgh
freight committee for rate of 10 cents per 100 pounds carloads, 14
cents less than carloads, from Pittsburgh district to Parkersburg,
W. Va., on bars, corrugated, galvanized, hoop, roofing, and sheet
iron and steel, since the Baltimore & Ohio have published similar
rates from Parkersburg to Pittsburgh and Allegheny. The individual
members were requested to take the matter up and see that the rates
from Pittsburgh were properly hned up.
UNITED STATES STEEL OOKPORATION. 4013
ASHLAND-IEONTON DISTRICT DIFFERENTIAL.
Mr. Bihler stated rate had been put in effect on plates to New-
Mexico and Arizona points from Asmand-Ironton district on 1 1 cents
differential over Mississippi River. The differential from Pittsburgh
is 14 cents and Ashland-Ironton district is supposed to have the same
differential as Pittsburgh. He has taken up with interested lines the
question of putting Pittsburgh on the same basis as Ashland-Ironton
district to these New Mexico and Arizona points on plates.
RATES ON SAND PIG lEON.
Attention was called to the fact that the Central Freight Associa-
tion had definitely decided, effective about the end of this year, to
apply the 2,240-pound basis instead of 2,268-pound basis on sand pig
iron, the railroads feeling that by that time matters would be so
adjusted in the territories where sand pig iron is still being produced,
in the Mahoning Valley particularly, that no particular hardship would
be felt.
BATES PER DIEM.
It was reported that the American EaHway Association committee
on relations with railroads is assembhng data on prepared blanks for
the further elimination of industrial roads which serve as "plant
facihties" from the per diem agreement of the American Railway
Association and with the object of discontinuing all reclaim from
allowances, and, further, to also endeavor to create a car-service charge
against these industrial roads rather than the per diem rate on all
equipment not owned by the industrial road, but which latter switch
from the interchange to the industries on the industrial road, so that
the trunk railroad will receive some recompense from the industrial
road, either for account of the latter or the industries on its line, for
the length of time the cars which the trunk railroad delivers the indus-
trial road are off the rails of the trunk road.
BALTIMORE & TEXAS STEAMSHIP CO.
Attention was called to the fact that there is new competition into
Texas on account of the Baltimore & Texas Steamship steamers from
Baltimore to Galveston, which has resulted in the Morgan & Mallory
lines reducing their rate from a 15-cent basis to 10 cents from New
York to Galveston on certain commodities, including wire nails and
cotton ties. It was advised that owing to this competition the Car-
negie Steel Co. would be able to ship ties to Galveston at a rate of
about 20 cents a ton lower than by chartering.
PIG-IRON RATES.
Mr. Bentley. I am advised that there wiU be a change in pig-iron
rates. The reduced rates will be withdrawn and new rates issued
about July 1, which will restore the old rates from the East on pig iron.
4014 UNITED STATES STEEL COEPOKATION.
BILLET KATES, CLEVELAND TO ANDERSON.
It was reported that a request had been made of the Cleveland lines
for a reduction in rates on billets from Cleveland to Anderson, Ind.,
the rate asked for being 90 per cent of the sixth class based on rates
that are more favorable to competitors.
A statement of cars and tonnages from constituent companies over
the B. & L. E. E. K. for March, 1910, is attached to the minutes.
A statement of cars and toimages of the E. J. & E. R. R. from
constituent companies for March, 1910, is attached to the minutes.
SOUTHERN IKON RATES.
Mr. Young. It looks as though an adjustment would be made put-
ting through rates to southeastern nonprorating points 1 1 cents over
the Ohio River. The Central Freight Association lines' tariffs wiU be
issued, effective about May 25, establishing through rates based on 11
cents over the Ohio River, compared with the present basis of 15 cents.
This should give the Pittsburgh district the rehef they are entitled to,
putting Pittsburgh on a parity with Chicago west and with the
Schuylkill.
RATE ON SCRAP IRON.
It is reported that reduction had been obtained on rate on scrap
iron from Dresden to Pittsburgh district from $1.50 to $1.20 per gross
ton.
SIDING AGREEMENTS.
Mr. Young. The committee recently appointed to consider the ad-
visabiUty of trying to have the raiboads adopt some uniform sidetrack
agreement met this week with Mr. Bohing, assistant general' solicitor
of the corporation, and the matter was again gone over very carefully.
The question is now in Mr. Boiling's hands, and he will call a meeting
at either Pittsburgh or New York some time later to thrash the sub-
ject out.
Wednesday, May 18, 1910.
The one hundred and first meeting of the Traffic Association, held
in room 1616, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
B, & O. dock, MAIN STREET, CLEVELAND.
Mr. TowNSEND. The special committee appointed to take up the
question of the B. & 0. R. R., Main Street dock at Cleveland, had a
conference with Vice President D. G. Kerr on AprU 20, and acting
upon his advice we had a meeting with Sunt. J. T. Johnson and
Freight Agent C. A. Witzel, of the B. & 0. R. R., at Cleveland on
April 30, and went down and examined the dock. We found that
the new planking and arrangement of tracks was nearly completed.
It was decided to let the National Tube Co. have the exclusive use of
this dock, and the B. & 0. R. R. Co. agreed to this arrangement.
UNITED STATES STEEL COBPOKATION. 4015
It was also reported that the American Steel & Wire Co. had leased
the B. & O. Seneca Street Dock for handling their material. This
dock will be equipped with two magnetic cranes and will be able to
handle freight of other subsidiary companies also.
PER DIEM EAILEOADS.
It was reported that the resolution prepared by the special com-
mittee of the American Railway Association in regard to the eligibility
of railroads to the per diem agreement set forth in their Circular 1006,
would be withdra,wn to-day at the annual meeting of the American
Railway Association that is in session now. It developed that the
action taken by the special committee referred to was not merely
a scheme of its chairman to discredit the terminal railroads, but that
he was really acting under instructions and apparently there will be
a determined effort made by some of the railroads to couple the per
diem arrangement with the terminal question generally.
IMPOET BATES.
It was reported that notwithstanding the fact that the Pennsyl-
vania, B. & O., and Reading Railroads jiad made radical reductions
from Philadelphia and Baltimore the import rate on magnesite is to
be advanced. The railroads have been asked to preserve the proper
differences between Pittsburgh and the Valleys which the roads want
to do by raising the rate to Pittsburgh, which is not satisfactory to
the Carnegie Steel Co.
KATES, PITTSBUEGH TO NOETHEASTEEN PENNSYLVANIA POINTS.
It was advised that the adjustment of rates on iron and steel arti-
cles from Pittsburgh versus Buffalo to northeastern Pennsylvania
points is being adjusted on -a basis, whereby Pittsburgh will have a
fixed differential of only one-half cent over Buffalo instead of the old
differential of 1^ cents.
A statement of cars and tonnages over the B. & L. E. R. R. from
constituent companies for AprU, 1910, is attached to the minutes.
A statement of cars and tonnages over the E. J. & E. R. R. from
constituent companies for April, 1910, is attached to the minutes.
SEPARATION CLAIM.
It was explained by Mr, Young that while his company had a
claim which could be filed with the commission with the consent of
the railroads and collect $1,468, after consultation with the executives
it was decided that it would not be good policy to file a formal com-
plaint.
TRANSCONTINENTAL MEETING.
Mr. Bentley. I appeared before the Transcontinental Freight
Bureau at 2.30 p. m., Monday afternoon, in Chicago, in behalf of our
company as well as the Carnegie Steel Co., American Sheet & Tin
Plate Co., Tennessee Coal, Iron & Railroad Co., and the Lorain Steel
Co. I stated that we would not press our application at the present
4016 UNITED STATES STEEL, COKPOBATION.
time for a reduction of $3 per ton on plates, structural, bars, etc., but
asked tbem to continue tbe subjects on the docket. I advocated a
restoration of the $10 gross ton basis from Chicago on steel rails, which
I do not think we wilf get. I opposed the restriction of the present
mixtures, i. e., taking bars and plates out of the structural, etc., and
I stated to them that so long as we did not ask a reduction in rates we
wanted to obtain as wide a mixture as possible. I also argued that
when one freight association turned over a car to the jurisdiction of
another association, carrying proper certification of the correctness of
the weights from one association to another, that they should accept
those weights and allow the cars to pass without reweighing them.
A statement of car service per diem debits and credits of various
companies for AprU ,1910, is attached to the minutes.
Frbdat, June 17, 1910.
The one hundred and second meeting of the Traffic Association,
held in room 1616, Empire Building, New York.
(Initialed: W. B, S., E. W., J. D. C, T. A.)
There were present traffic managers of various companies.
INDUSTRIAL SWITCHING.
Attention was called to the fact that the Interstate Commerce
Commission haye had two examiners in western Pennsylvania for the
last 60 days gathering data as to the sidetracks owned by industries
where the industries operate their own engines; information as to the
length of tracks; number of engines owned; rate of compensation, if
any; cost of operating the engines; in fact, all data in regard to oper-
ation of engine over the private tracks. The examiners advised that
they were getting this data from every concern that owned tracks
and operate an engine. Mr. Young advised that he had asked Mr.
Carmalt, the Interstate Commerce Commission examiner, what ip hia
opinion would be a fair proposition, to which he replied that his
personal idea was that a fair proposition in a case of this kind would
be to divide the work done by the engine and for strictly interworks
movement, the industry to pay its proportion of the total cost as the
total number of cars moved within the mUl would compare with the
total number of cars the railroads handled to and from their junction.
Mr. Young explained that the examiner's opinion was exactly similar
to the hues on which the American Sheet & Tin Plate Co. was work-
ing at Canal Dover, Ohio, and that being the case, his company had
immediately taken up the question of having the same practice
established at Wellsville, Ohio, and inquire if there was any objection
to making appUcation for the same arrangement at two other points
similarly situated, Scotdale and Vandegriit. After discussion it was
decided that there would be no objection to Mr. Young proceeding to
make the desired arrangements regarding the switching expense at
the points referred to and that other members allow ti&e matter to
remain in abeyance so far as their companies were concerned.
A statement of the cars and tonnages over the B. & L. E. R. R-
from constituent companies for May, 1910, is attached to the minutes.
A statement of cars and tonnages ^over the E. J. & E. R. R. for
May, 1910, is attached to the minutes.
UNITED STATES STEEL OOKPORATION. 4017
EATE, PIG LEAD AND SPELTER.
It was reported that the Central Freight Association lines were
checking in advance on pig lead and spelter. The rate of 19^ cents
from St. Louis to New York was checked in making the rate of 16^
cents to Pittsburgh and Cleveland. It was stated that the American
Steel & Wire Co. and the American Sheet & Tin Plate Co. had taken
this matter up with the executives of the Central Freight Association
lines and finding that it was impossible to avoid advances, owing to
advances west of the river, proposed that the railroads scale St. Louis
on the usual percentage proportion, making 13 J cents rate to Pitts-
burgh and allowing a differential of one-half cent between Pitts-
bui^h and Canal Dover, Ohio, and Cambridge, the same is in effect
to Cleveland district at the present time. The matter is to be con-
sidered again by the railroads next week.
ADVANCE IN FREIGHT RATES.
It was reported that there was no mateiial change in the question
of advance m freight rates. It has been decided by the railroads to
put the rates on file with the commission on July 1, effective August
1, with the understanding that they wiQ be suspended by the com-
mission. Up to the present time iron and steel and tin-plate rates
are not disturbed. It was explained that in the list of articles in the
classification under iron and steel and articles of steel manufacture
there appeared to be a good many commodities that the subsidiary
companies are not interested in, and the chairman requested that the
Pittsburgh contingent get together and arrive at just what would be
eliminated from the special iron list without any detriment to the
corporation.
It was advised that there was a movement on foot to advance
rates from the Atlantic frontier to points in Canada, and that rates
from Pittsburgh shall be no lower than at the present time as com-
pared with the rates that are proposed from the frontier.
It was advised that the advance would not be very material on
iron and steel, and that the supposition was that the present rates
will continue on iron and steel into Canada the same as in Central
Freight Association territory. '
RATE TO VANCOUVER, BRITISH COLUMBIA.
Attention was called to the fact that by using the combination of
locals via London, Ontario, on shipments from Pittsburgh and Cleve-
land to Vancouver, British ColumJbia, that there was a great saving,
the sums of locals making a rate of 69 cents through as against the
present through tariff of 90 cents all rail. It was stated that there
was no necessity for reconsigning in this case as the initial line could
issue a through biU of lading.
Owing to me difference of opinion on this subject, it was left in
the hands of the following committee: Messrs. F. C. Baird, chairman;
C. S. Belsterling, L. C. Bihler, J. A. Coakley, and A. F. Mack.
4018 UNITED STATES STEEL COEPOEATION.
CANADIAN KATES.
It was advised that the Pittsburgh freight committee had agreed
to the advance of 50 cents a ton over Cleveland on wire rods from
Pittsburgh or Mahoning and Shenango Valleys into Canada, and that
the matter wiH be considered at a jomt committee meeting.
WEIGHTS ON COKE.
It was explained that heretofore it had been the practice of the
Illinois Steel Co. to use the weights of coke arrived at on their own
track scale, but now that the tariffs provided that the weights
arrived at at the mines or ovens are the ones to be used, they have
changed their practice.
A statement of car service per diem debits and credits of constitu-
ent companies for May, 1910, is attached to the minutes.
July 20, 1910.
The one hundred and third meeting of the TraflBc Association held
in room 1616, Empire Building, New York.
[Initialed: W. B. S., W. W., J. D. C, T. A., Moise Ewlng.)
There were present traffic managers of various companies.
TERMINAL RAILROADS.
The Interstate Commerce Commission examiner, Mr. Frank M.
Swacker, has been making an investigation of aJl terminal and
industrial railroads in the State of Ohio.
Mr. Townsend stated that Mr. Swacker went over the Lake Ter-
minal Railroad last Wednesday and asked for data, such as the
miles of track owned and operated, rolling stock, real estate, and
other property owned; details as to quantity of traffic handled for
the pnncipal industry and for other concerns. He inquired par-
ticularly in regard to the per diem and reclaim, and expressed a
great deal of surprise that car service was not being charged, and
explained that it was his belief that this feature should be corrected
immediately.
After a conference with our president, and at his suggestion, Mr.
Bihler and I went over the matter with Judge Reed, and he expressed
the behef that inasmuch as the per diem car service charges are pub-
lished in the tariffs of the trunk lines under which the traffic is moved,
that the car service charges should be made, but that he felt this
question was an important one and that the traffic committee should
decide upon a definite recommendation when he would be glad to
consider the matter again, and it, no doubt, should be submitted to
Mr. MacVeagh.
It seems to me there can be no question about what we should do,
for the act provides that the tarin must state everything of value
given by the railroad company in return for the rate. Car service is
a thing of value.
It was reported that the Newburgh & South Shore Railway had a
similar visit from Mr. Swacker, and he had raised the question in
UNITED STATES STEEL. OORPOKATION. 4019
regard to not chargii^ car service on that road also. Mr. Coakley
stated that Attorney Duncan felt that car service should be charged.
The Northern Liberties Railway and the Donora Southern Railroad
Co. do not charge car service, but car service is collected by the
initial lines leading from these roads.
It was stated by Mr. Bihler that no car service was being charged
by the terminal roads working under the per diem reclaim agreement,
i. e., the Union, Mercer Valley, and Pittsburgh & Ohio Valley (Neville
division) .
The St. Clair Terminal, Pittsburgh & Ohio Valley (Allegheny
division), and Etna & Montrose Railroad, not under per diem, do not
charge car service, but car service is charged and collected by the
initial lines connecting with those roads.
TERMINAL RAILEOADS' TARIFrS.
The question of publishing tariffs on interstate traffic for terminal
railroads that do not enjoy a terminal license from the railroad, such,
for instance, as the McKeesport connecting railroad, that merely
receives terminal allowance on blast-furnace stock, such as ore, coke,
and limestone, i. e.. Is it proper to publish a tariff for a charge made
against the industry for the traffic, such as outbound shipments of
wrought pipe, and make the collection from the industry, or, in other
words, to collect, say, $1.50 per car on such traffic from the works
and make no charge against the works on the furnace stock re-
ferred to ?
We believe that this is a question that we should have a written
legal opinion upon.
It was advised that tariffs have been issued by the St. Clair Ter-
minal RaUroad in connection with the Pittsburgh & Lake Erie
Railroad and Pennsylvania Railroad (the Wabash Railroad being
covered by contract) charging $2 per car on all other commodities
than ore, coke, and limestone, and that the Pittsburgh & Ohio Valley
both at Allegheny*and Neville Islands, as well as the Etna & Montrose,
have issued tariffs charging $1.50 per car on all other commodities
than ore, coke, and limestone.
It was reported that the Northern Liberties Railway and the
Donora Southern Railroad would publish $1.50 on all other com-
modities than ore, coke, and limestone.
It was stated that the Pencoyd & Philaoelphia Railroad, Ellwood,
Anderson & Lapelle Railroad, and McKeesport Terminal Railroad
have covered their charges by tariff.
The question was discussed as to whether it would not be proper
tiO make a xmiform charge, but the matter was left in the hands of
each individual company to handle as was thought best.
A full discussion of the terminal railway situation was had, and,
in view of the developments of the interstate law and the attitude
of the trunk lines toward such roads, it was
Resolved, That all terminal roads should make a charge against
all movements and publish the necessary tariffs; also that each
terminal railroad working under American Railway Association per
diem reclaim agreement should publish and enforce individual car-
service rules as applied by other carriers.
4020 UNITED STATES STEEL COEPOKATION.
The Chairman. I will appoint the following committee to call
upon Judge Eeed with a copy of the above resolution and discuss the
matter: Messrs. C. S. Belsterling, chairman; L. S. Bihler, L. H.
Korndorff, and J. F. Townsend.
A statement of cars and tonnages over the B. & L. E. E,. R. from
constituent companies for June, 1910, is attached to the minutes.
A statement of cars and tonnages over the E. J. & E. from con-
stituent companies for June, 1910, is attached to the minutes.
SPECIAL IRON LIST.
It was reported that the Bessemer & Lake Erie had been successful
in having planished iron and wire fencing added to the special iron
list, which was very irnportant to the Sheet & Tin Plate Co. and
American Steel & Wire Co.
A statement of car service per diem debits and credits of constituent
companies for June, 1910, is attached to the minutes.
Friday, September 16, 1910.
The one hundred and fourth meeting of the Traffic Association,
held in room 1446, Commercial National Bank BuUdiug, Chicago, 111.
[Initialed: W. B. S., E. W., J. D. C, T. A.J
There were present traffic managers of various companies.
THROUGH rate VERSUS SUMS OP LOCALS.
Mr. Bentley. I have had some correspondence with the legisla-
tive committee on the new act on the basis of the sums of locals
versus the higher through rate. I put the matter up to our attor-
neys, and also took it up with Mr. Belsterling, who had the matter
up with Judge Reed, and the consensus of opinion of both legal
departments is that the higher through rate will have to be paid and
then make relief claims through the Interstate Commerce Commis-
sion.
rebilling in transit.
Mr. Young. Mr. Belsterling, chairman of the special committee
on rebilling in transit, reports that a meeting of the special committee
was held in Pittsburgh on August 16, and as a result of that meeting
the procedure as per attached copy of minutes was unanimously
decided upon. It was decided that the report of the special com-
mittee be adopted and incorporated in the minutes as follows:
The special committee appointed to consider and recommend a lawful practice in
this matter went over the subject very thoroughly. A number of legal opinions were
read, among which was a very able opinion from Mr. Duncan, of Squires, Sanders &
Dempsey, to the effect that it is necessary to take physical possession of the property
at the rebilliug point, m order to obtain the benefit of the sum of locals.
Notwithstandmg this, it was the consensus of opiaion of all, that there is nothing
in the law specifically requiring a shipper through his agent or representative to take
physical possession of such property on arrival at its destination. The commission
m citing the law stated that the Supreme Court of the United States has held that a
shipper may transport merchandise to a given point, take possession of it at that point
and reship, even mough the effect of the transaction is to secure transportation from
a point in one State to a point in another, at a less cost than the publiflhed through
interstate rate and further the commission itself has decided that the possession must
either be actual or constructive.
UNITED STATES STEEL COEPOEATION. 4021
It is uniformly held, however, that no agent of a carrier may lawfully act as the
reconsigning or forwarding agent of the shipper in such transactions when such reship-
ments or reconsignments have the effect of securing for that shipper lower transporta-
tion charges than those measured by the specifically published through rate from
point of origin to point of destination of the shipment.
After an exhaustive study of all the pertiaent decisions both by the Federal courts
and the Interstate Commerce Commisjson and of the various opinions of counsel, it
was decided that when a shipment was consigned to some given point, and it was
necessary or convenient to have such shipment rebilled to a new destination, the
following practice may be followed in order to bring it within the law as laid down
by the Interstate Commerce Commission, whose specific rulings in this matter have
not been before any Federal courts for construction:
1. Material should be consigned to some party other than any railroad company
or any agent interested in the contract of transportation.
2. The charges should be fully paid to the first consigned point to the carrier or
carriers party to the original contract for transportation, in other words the back
charges should not be allowed to follow with the rebilling.
3. After the arrival of the property at the original consigned point and delivery
effected to the consignee either actually or constouctively, thus completing the first
transaction, a new bill of lading from that point should be properly made out and
tendered to the proper traflBc ofllcial of the road with whom the new contract of trans-
portation is made, but in no case is it permissible to employ the services of the carrier's
agents at the rebilling point for the purpose of taking delivery or acting as forwarding
agent or making out new contract.
4. Actual physical delivery of the property is considered to mean taking the load-
ing out of the car by the consignee or his agent at the first destination and paying all
transportation charges that may be lawfully due thereon. Constructive delivery is
where the consignee or his agent, other than an employee of a railroad, assumes cus-
tody of the property and pays all freight charges thereon, thus in both cases executing
the contract of transportation and relieving the raihoad company from all further
liability thereunder.
5. The above is not to be construed as in conflict with the practice now in vogue
with some of the subsidiary companies under which a shipment is consigned to a
district sales manager or to an agent other than an employee of any interstate carrier
at some given point, such consignee taking actual or constructive possession of the
property and reshipping under a new bi' 1 of lading to new destination, making two
separate transportation contracts.
TERMINAL RAILROADS.
Mr. Young. Mr. Belsterling, chairman of the special committee
on the subject of assessing car-service charges by the terminal rail-
roads members of the per diem reclaim agreement, advised that the
committee have a meeting in Judge Eeecrs office July 25; and as a
result of that meeting Judge Reed wrote an opinion as per letter
quoted below, dated July 25 :
Referring to discussion of this morning in reference to the following resolution of
your traffic association, to wit:
"Resolved, That all terminal roads should make a charge against all movements and
publish the necessary tariffs, also that such terminal railroad working under American
Railway Association per diem reclaim agreement, should publish and enforce indi-
vidual car-service rules as applied by other carriers."
I beg to say that I agree entirely with your committee that legally a charge should
be made by the different railways for every character of service conducted for the
industries with which their tracks connect. If locomotives are furnished for the han-
dling of business upon the tracks owned by the industry, a fair charge should be made
for me use of the locomotive and crew if furnished by the railroad company.
I do not think it is necessary under the law to publish tariffs for services which are
not connected with interstate movements, as, for instance, the handling of a purely
local shipment, as there is no law in the State of Pennsylvania requiring the publica-
tion of tariffs for service entirely within the State and not part of interstate transporta-
tion. The voluntary publication of such a tariff imposes an additional duty upon a
traffic department ateady overburdened with detail of this sort.
Of course tiiese charges must be fair and without discrimination as between shippers
upon the same railroad.
4022 UNITED STATES STEEL CORPORATION.
I think undoubtedly the raih-oad companies should pubHsh and enforce car-service
rules, especially as to the interstate shipments. These car-service rules are enforced
by practically every railroad in the country, and it would be difficult to explain why
they are not enforced by our railway companies, except upon the ground of a joint
interest.
At the present time all the terminal railroads of the corporation that are members of
the said per diemreclaim ^eement have published and filed with the Interstate Com-
merce Commission the uniform car-service rules.
Mr. TowNSEND. It is gratifying to us to know that the Bessemer
& Lake Erie Railroad Co. absorbed the Pittsburgh, Allegheny &
McKees Rocks Railroad switching charge of $2.50 per car in addition
to the P. & L. E. switching, indicating as it does that the Bessemer
is in favor of strengthening the terminal railroads, whereas the E. J.
& E. has declined to join in absorbing the terminal allowances of the
Lake Terminal Railroad.
Mr. Young. In regard to those roads not incorporated, I have
made an application For engine allowance, but have not been success-
ful in getting it as yet. The railroads at present are declining and
deferring taking any action until the entire matter of terminal Slow-
ances is finally settled.
Statement of cars and tonnages over the B. & L. E. from constitu-
ent companies for July, 1910, is attached to the minutes.
Statement of cars and tonnages over the E. J. & E. from con-
stituent companies for July, 1910, is attached to the minutes.
Statement of car service per diem debits and credits of constituent
companies for July, 1910, is attached to the minutes.
Wednesday, October 19, 1910.
The one hundred and fifth meeting of the Traffic Association, held
in room 1616, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
There wBre present traffic managers of various companies.
PER DIEM.
Mr. Townsend. * * * in this connection I understand some
of the United States Steel railroads have been considering the advisa-
bility of joining the American Railway Clearing House, and from our
standpoint I want to say that I think it would be a mistake, for the
simple reason that it will give Mr. Hale the information that he has
been striving for — that is, to check up not only the per diem but the
reclaim records of our railroads.
^h. BiHLEN. The Union Railroad has been for some time past send-
ing the American Railway Association monthly statements of their
standing on per diem, tins being part of an understanding or an agree-
ment under which the Union Railroad reclaim was continued at five
days, it being part of the understanding that the Union Railroad
would keep the railroads currently informed.
The Chairman. I think the point raised by Mr. Townsend is a
good one, and wish in addition to keep within reasonable bounds in
supplying information to the American Railway Clearing House.
However, the matter is left in the hands of the individual companies
to handle as thought best.
UNITED STATES STEEL OOEPOEATION. 4023
STEEL RAIL RATES TO TEXAS.
It was reported that the Maryland Steel Co. was endeavoring to
procure a further reduction in the steel rail rates to Texas common
¥oints, having asked for a reduction of 60 cents per ton from Galveston,
he case is to come up before the Texas railroad commission at
Austin November 10, 1910, and it was decided that the reduction
should be opposed by the interested companies of the corporation.
DOUBLE AND TRIPLE CARLOAD MINIMUM.
Attention was called to the fact that the Western Trunk Line have
again revived the question of double and triple carload minimum.
The new rule, effective November 1, 1910, reads as follows:
When articles classified under the heading of iron and steel, on account of length
require two or more cars to transport them, ttie minimum charge for each series or lot
(not to exceed three cars in any one lot or series) shall be as follows: For the first car,
the minimum weight provided for such articles in carloads; for two cars, the mini-
mum weight shall be one and one-half times the single car minimum weight; for three
cars double the single car minimum weight (actual weight to be charged for when the
aggregate actual weight exceeds the specific minimum weights at the carload rate).
It was decided that in view of the fact that the increase in the mini-
mum does not work a hardship on all of the companies the consistent
thing to do would be for the individual companies affected to oppose
the proposition.
It was also explained that the rule above referred to was being pro-
posed as one that should be carried by the uniform classification com-
mittee. On advice from Mr. Belsterhng that he now had this same
rule under consideration with the official classification committee.
It was decided that the matter be left in the hands of the Pittsburgh
committee.
CAR SERVICE.
Attention was called to the decision by the public service commis-
sion of New York on the subject of car service on private cars. The
commission oppose the contentions of the General Electric Co. that
it is illegal for the railroads to charge demurrage on inbound private
cars removed from the inchanged track at Schenectady and taken
by the complainant's own power and upon its own tracks into its plant.
Mr. Bihler reported that he did not have complete reports on car
service on the Union Railroad and Mercer Valley Railroad for the
month of September. Indications are, however, that it is working
out satisfactorily on the Union Railroad, but less so on Mercer Valley
at South Sharon, principally because of the fact that railroad cars
are necessarily used for intermill work, the plants there possessing no
individual cars, neither does the Mercer Valley.
Attention was again called to the enormous car-service debit of
the Illinois Steel Co. It was explained by Mr. Bentley that this mat-
ter had been put into his hands and that he had made his report to
President Buffiington.
A statement of cars and tonnages over the E. J. & E. from consti-
tuent companies for September, 1910, is attached to the minutes.
A statement of cars and tonnages over the Bessemer & Lake Erie
from constituent companies for September, 1910, is attached to the
minutes.
4024 UNITED STATES STEEL CORPORATION.
CANADIAN INSUBANCE.
Mr. Young. I desire to call attention to the fact that the valuations
declared on export manifests do not correspond exactly with the ex-
gort invoice, and we have had some cases recently where customers
led claims, and were notified by carriers that they settle only on the
basis of declared value on the export manifests, and not on the invoice.
I think it might be well if we could decide on some uniform plan that
would be followed by all companies.
This matter was left in the hands of the insurance committee.
FREE TIME IN COAL.
Trunk line traffic managers' committee will draft a set of rules allow-
ing 30 days free time on such shipments.
SIDETKACK AGREEMENTS.
Mr. Young. The committee on uniform sidetrack agreements met
yesterday with Mr. MacVeagh, who had prepared a draft of an agree-
ment. The committee went over it in detail, and after discussing the
various clauses, it was suggested that each company try to draft
something, and then the committee should get together and en-
deavor to unify the suggestions for a uniform agreement, and meet
with Mr. MacVeagh in about a month and see if an agreement can not
be reached. It was thought by Mr. MacVeagh that it might be im-
possible to get a uniform agreement, but the form might be drafted,
based on which we could attempt to have the railroads modify their
standard form of agreements so as to conform more nearly to what we
thought was a fair basis. The committee will endeavor to meet Mr.
MacVeagh again next month, after going over the matter ourselves.
A statement of car service per diem debits and credits of constituent
companies for September, 1910, is attached to the minutes.
Tuesday, November 22, 1910.
The one hundred and sixth meeting of the Traffic Association, held
in room 1616, Empire Building, New York City.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
UNIFORM sidetrack AGREEMENT.
Mr. Young. The committee had a conference with Mr. MacVeagh
yesterday, and at his suggestion the matter was left in his hands to try
and formidate something that would be satisfactory to all of the
interests. Mr. MacVeagh wiU submit through me as chairman of the
committee a proposed draft of agreement, and I will see that it is
bulletined to all concerned.
PER DIEM.
Mr. TowNSEND. In regard to the eligibility of per diem railroads,
the proposition was considered at the American Railway Association
meeting in St. Louis November 16, at which time was to have been
UNITED STATES STEEL COEPOEATIQN. 4025
considered action by that body to modify their rule on eligibility of
terminal roads to per diem agreement to require them to make appli-
cation for membership in the bureau for the safe transportation of
explosives, a signer of master car builders' agreement, and to put in
force national car demurrage rules.
Owing to the very able work of Messrs. Bihler and Coakley, the reso-
lution was revised "by the commiittee, and as adopted practically will
do no harm. In other words, the questions in reference to a terminal
road being a member or associate member of the American Eailway
Association was eliminated; therefore there was no real objection to
the plan. It is understood that all the corporation terminal switching
roads who are now members of the American Railway Association per
diem-reclaim pgreem nt aire ..dy.have in force the national car service
rules, and are workmg under master c >.r bui'ders' agreement, and will
sign same if not already done, as well as make application for member-
ship in the bureau for the safe transportation of explosives.
REDUCED RATES, ST. LOUIS TO KANSAS CITY.
It was reported that the Kansas City transportation bureau, through
H. Q. Wilson, had asked the Missouri State railroad commission to
order reduction in rates on iron and steel articles, including the wire
and nails, from 22 cents to 15 cents per 100 pounds, minimum weight
60,000 pounds. This is evidently a scheme of the big Kansas City
jobbers to hold out by a high minimum and to play into the hands of
the big jobber to the detriment of the small one, who can not order as
much as 60,000 tons often. It is confined to a State proposition, but
must necessarily affect interstate traffic, and the Missouri Eiver lines
would be unwilling, if compelled by order of the commission to reduce
the rate from St. Louis to Kansas City, to make the reduced rate ap-
ply on East St. Louis, or to record the usual differential basis from
Chicago over the new reduced rate from river to river. The railroads
are against the proposition, and the view of this committee is that a
reduction in the rate will not increase business a particle between the
two rivers, but merely reduce the railroad's revenue, and we think
60,000 pounds minimum is unfair and discriminatory to the small
buyer.
RATES TO WILKBS-BAREE-SCRANTON DISTRICT.
It was reported that the promised advanced rates from Pittsburgh
and Buffalo to the WUkes-Barre-Scranton district would take effect
January 1, 1911.
CARLOAD MINIMUM, WESTERN TRUNK LINES.
Attention was called to the fact that, effective November 1,
exception sheet was issued by western trunk lines making the mini-
mum on double carloads one and one-half times a single-car minimum,
whereas heretofore the minimum was 45,000 pounds for two cars
and 60,000 pounds for three cars. The matter was taken up with
western trunk lines and it now seems the change was issued in error,
and advice is given that Chairman Hosmer had been instructed to
correct this tanff and restore old minimum basis effective January 1 ,
1911.
4026 UNITED STATES STEEL COBPOKATION.
CANADIAN RATES.
Mr. Bihler called attention to the increase rates to take effect
December 1 on certain commodities from the Pittsburgh district to
Canadian points, such as an advance from $2 to $2.50 per gross ton
on skelp to Hamilton and from $3.50 to $4 per gross ton on skelp to
Montreal. This is in line with the understanding that Pittsburgh
shippers would not object to 50 cents per gross ton differential over
Cleveland, but so far no advance has been made in the rate of $2.50
per gross ton on skelp from Pittsburgh to Guelph.
KATES ON BILLETS, SWANSEA, WELLAND, AND HAMILTON.
Mr. Bihler reported he had sounded the initial and Canadian lines
on question of reducing the rate on bUlets and wire rods from Pitts-
burgh district to Swansea, Welland, and Hamilton, Ontario, for
account of Canada Bolt & Nut Co., to same basis as in effect on wire
rods, but found that if the matter was thrashed it might affect the
low rate now applicable from Cleveland and disturb the general com-
modity rate in effect both from Pittsburgh and Cleveland, and there-
fore he declined (not) to press the matter, especially as the new rate
on wire rods effective soon from Pittsburgh to Toronto, which rate
basis appUes to Swansea, will be $2.75 per gross ton, thus leaving
the spread only 25 cents per gross ton between rate on wire rods and
billets.
MILWAUKEE HATES.
It is reported that the interested lines had practically agreed to make
the same iron and steel rates from Pittsburgh and Buffalo to Mil-
waukee, but that this brought up the general question of realignment
from Buffalo and Pittsburgh to the West, and the lines were not a
unit as to the basis that should apply, but it is hoped that this matter
will soon be straightened out.
A statement of cars and tonnages over the B. & L. E. from constitu-
ent companies for October, 1910, is attached to the minutes.
A statement of cars and tonnages over the E., J. & E. from con-
stituent companies for October, 1910, is attached to the minutes.
STEEL-SAIL RATES TO TEXAS.
Mr. Bentley. Mr. Newlin, traffic manager of the Pennsylvania
Steel Co., filed a petition with the Texas railroad commission to
reduce the rate on rails and fastenings from Gulf ports into the State,
so as to enable those water-borne shipments from Sparrows Point to
have greater advantage over all competitors.
The hearing, on November 10, at Austin, was attended by Mr.
Carey and myself, together with Mr. Hearon, of the Colorado Fuel
& Iron Co. Newlin' s principal contention was that his competition
was with Birmingham and Pueblo ; but we brought out, through the
Texas lines, that most of the rails that his company sold down there
were Bessemer, which these miUs do not make, and Chicago was the
nearest competitor. He testified that the average rate for the last
five years to on dock Galveston on rails was $2.87^ per gross ton.
We found the Texas lines very sore against Ms move, and our
presence strengthened their friendly relations with our corporation
UNITED STATES STEEL. COKPOBATION. 4027
companies. The result is not yet promulgated; but unless the com-
mission is entirely swayed by local political conditions the Pennsyl-
vania Steel Co. -vml not win, as they made a very poor case.
ADRIAN, MICH.
It is reported that the Adrian Wire Fence Co. have finally gone to
the commission on the question of rates from Pittsburgh to Chicago
versus rates Pittsburgh to Adrian plus locals to Chicago, asking for
a reduction of 5 cents per pound. It is not anticipated that they
will estabhsh a case, as what is desired is really a milling-in-transit
arrangement.
A statement of car service per diem debits and credits of various
companies for October, 1910, is attached to the minutes.
Wednesday, December 21, 1910.
The one hundred t nd seventh meeting of the Traffic Associ ition,
held in room 1616, Empiie Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic manageis of various companies.
TERMINAL RAn.ROADS.
The Chairman. In regard to the terminal railroads, there is rather
a mixed-up situation. The matter is now being considered by the
committee of attorneys of the corporation, but there is nothing defi-
nite or new to report at this time, but undoubtedly will be at the
next meeting.
Mr. BiHLEK. The terminal committee was represented at New Or-
leanri for five days at the hearing of the tap-line cases, a complete
report of which had been sent to the chairman, as weU as copies to
all interested members.
STEEL RAIL RATES TO TEXAS.
It was reported that the Texas railroad commission, notwithstand-
ing all the opposing efforts of Messrs. Bentley and Carey and also
Mr. Hearon, of the Colorado Fuel & Iron Co., decided to grant a
reduction of 60 cents per ton on steel rails from Galveston to Texas
common points, reducing the rate from $2.70 to $2.10 pec grods ton,
effective January 10, 1911.
Mr. BiHLER. As chairman of the committee on steel rails, I believe
nothing more could have been done than was done to prevent this
unnecessary leduction.
manufacturers' RAILWAY OE ST. LOUIS.
It was reported thit since the arrangement in this case the St. L.
S. W., C, P. & St. L., St. L. & S. F., M., K. & T., C. & E. I., and
C, K. I. & P. railroads have arranged their traffic arrangements with
the Manufacturers' Railway, allowing them $4.50 per car.
31572— No. 53, pt. 2—12 19
4028 UNITED STATES STEEL COBPOBATION.
CAE SEETICE.
It was reported that the supreme court of Oliio, in the case of rail-
road commission of Ohio v. Ann Arbor Railroad and others, took
away from the Ohio commission its right to change certain charges or
regulations and practice regarding demurrage on interstate commerce.
Hearing is pendmg before the State railroad commission, veering the
commission's authority to fix rates on interstate business, whichnear-
ing will be dropped in view of the supreme court's decision.
Mr. Bates. At the hearing in Boston recently, before Commissioners
EJiapp and Prouty, there were a number of protests made about the
car-service rule, which Avas to be changed from 96 hours to 48 hours.
The commission finaUy decided to allow for a six months' trial the
privilege of 60 hours instead of 48 hours on coal, lumber, grain, hay,
and similar bulk rate, but advantage could not be taken of this
privilege if you have signed the average agreement.
Mr. Bihler called attention to the decision of the Interstate Com-
merce Commission in the Proctor & Gamble case, in wliich it was
decided that the C, H. & D. railway was entirely within its rights
in assessing car service on private cars under load on private tracks,
notwithstanding the fact that the pubhc-service commission of New
York had ruled adversely.
A statement of cars and tonnages over the E., J. & E. from con-
stituent companies for November, 1910, is attached to the minutes.
A statement of cars and tonnages over B. & L. E. R. R. from con-
stituent companies for November, 1910, is attached to the minutes.
RATES ON WIRE RODS, BILLETS, AND SKELP.
Mr. Baird reported an effort has been successful in staving off
advance in rates on wire rods, bUlets, and skelp to Canadian points;
in fact, aU tariffs making advance are being withdrawn on three days'
notice to the Interstate Commerce Commission by permission. Even-
tually advance will probably be made on wire rods,, but it looks as
though it win not be made on billets and skelp, at least not on skelp.
REDUCED RATES, ST. LOUIS TO KANSAS CITY.
It was reported that the matter of reduced rates on iron and steel
articles, carloads, St. Louis to Kansas City, would come up for final
decision January 11, 1911, by the Missouri railroad commission. It
was stated that while it is plain by the Kansas City parties that the
reduction would only affect St. Louis proper, there does not seem to
be any way whereby it could be restricted to that territory, as about
95 per cent of the traffic is through shipments from the Pittsburgh
district, and this would have the effect of forcing a reduction on all
business moving to and through the Missouri River gateway for
beyond.
PENNSYLVANIA RAILROAD.
Mr. Bates. I have a letter from the Pennsylvania Railroad inquir-
ing as to the amount of business our company has done with them in
the New England district during the last year, advising that this
information is required by the Pittsburgh department. I find that
UNITED STATES STEEL CORPORATION-.
4029
the P. R. R. are going all through New England, making up the
amount of tonnage from manufacturers from whom they would prob-
ably purchase anything. They are going to adopt a policy of in-
structing their purchasing agents in cases of purchases of certain lines
of material to procure those goods at an egual figure from the parties
favoring them with the most business, giving preference to industries
on their own rails.
A statement of car service per diem debits and credits of constituent
companies for November 10, 1910, is attached to the minutes.
Wednesday, January 18, 1911.
The one-hundred and eighth meeting of the Traffic Association^
held in room 1616, Empire Building, New York.
(Initialed: W. B. S., E. W., J. D. C, T. A.J
Present: Traffic managers of various companies.
Uniform sidetrack agreement to be reported at the February meet-
ing.
RATE ON WIRE RODS TO CANADIAN POINTS.
It was reported that the rates on wire rods to Canadian points are
now lined up properly, the raihoads having checked new rate of 50
cents per ton higher from Pittsburgh and Mahoning and Chenango
Valleys than from Cleveland, the billet and skelp rates to remain as at
present. This new rate to become effective April 1.
A statement of cars and tonnages over the B. & L. E. R. R. from
constituent companies for December, 1910, is attached to the minutes.
A statement of tonnages in carloads forwarded via the E. J. & E. by
constituent companies for December, 1910, is attached to the minutes.
The following is a statement of tonnages forwarded by the Carnegie
Steel Co. after 1909 (to be added to the statement covering the years
1903 to 1909, inclusive, which is attached to the minutes of the ninety-
seventh meeting, January 20, 1910, supra):
Period.
Edgar
Thomson
Worts.
Duquesne
Worts.
Homestead
Worts.
Howard
Axle
Worts.
Carrie
Furnaces.
Utah.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
Cars.
Tons.
1910
3,891
142,350
5,047
2,781
157,107
94,849
137,501
9,462
453,733
321,125
751
290
33,059
17,063
23,439
9,060
3,473
1,495
1,794
786,249
352,364
80,663
65,673
103,873
1903 versus 1910:
Decrease
3,473
80,663
1909 versus 1910:
Increase
1,274
45,306
221
10,367
1,303
80,519
484
23,023
7
330
4030
UNITED STATES STEEL COBPORATION.
Equipment, tonnage, etc., of mills.
Mills.
Equip-
ment.
Percent-
age.
Tonnage.
Percent-
age.
Tons per car.
1910
1009
«
Edgar Thomson Works
3,891
5,047
13,750
751
12.55
16.23
44.23
2.41
142,350
157,107
453,733
33,059
14.00
16.48
44.60
3.24
36.5
32.1
32.9
44.0
42 9
Duquesne Steel Works
32 5
Homestead Steel Works
32 7
Soward Axle Works
42.8
47 1
Carrie Pumaoes
American Steel & Wire Co
2,777
4,867
8.93
16.66
62,512
170,843
6.13
16.65
22.5
34.9
22.S
32.2
Unlrersal Portland Cement Co
Total or average
31,083
100.00
1,019,604
100.00
32.8
33.6
COKE BATES.
Attention was called to the fact that the Interstate Commerce
Commission had dismissed the complaint of coke smelters against
the railroads leading from Connellsville region, where the discrimina-
tion was alleged in application of coke rate through charging higher
rate on coke for copper smelting up to Chicago than was charged on
fcoke for blast furnaces making iron.
The commission heard that smelters of iron and of copper do not
compete with each in any proper or ordinary sense of tne term, in
that iron sells for $18 or $20 per ton, while copper is rated between
$200 and $500 per ton. The commission pointed out that it has
always disapproved of the practice of the past in basing freight
charges on the use to which the commodity is to be put, but in this
case such discrimination is allowable.
INTERNATIONAL COMMERCE TRIBUNE.
Attention was called to the understanding arrived at between
President Mahee, of the Canadian railroad board, and former Chairman
Knapp, of the Interstate Commerce Commission, which is to be
drawn up in treaty form and ratified by the two Governments.
It is evidently intended to take care of cases requiring treatment
which to-day come neither under the Canadian railroad commission
nor the power of the Interstate Commerce Commission as to joint
through rates and routes.
TERMINAL RAILROADS.
The very complete and concise statements that you gentlemen all
furmsh of your respective companies were turned over to the corpora-
tion and are being used extensively.
Some progress has been made toward the settlement of the question,
but nothmg defimte aa yet. We hope to be able by the next meeting
to teU you just exactly how the thing stands
Statement of car service per diem debits and credits of various
compames for December, 1910, is attached to the minutes
A statement of freight claims of various companies for loss and
overcharge, etc., for 1910 is attached to the minutes.
UNITED STATES STEEL COEPOBATION. 4031
Febbuaey 15, 1911.
The one hundred and ninth meeting of the Traffic Association, held
in room 1616, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
• Present: Traffic managers of various coiqpanies.
STEEL BARGES INSXIRANCE.
Mr. Bihler reported that with the advent of the first steel barge of
the corporation fleet, the Ambridge, voluntary approaches were made
by independent river underwriters offering very material reductions in
insurance rates from the Pittsburgh districts to Ohio and Mississippi
River points, as result of which insurance costs on material shipped
in the steel craft has undergone a radical revision downward.
HOUSE BILL 54.
Mr. Coakley called attention to House bill 54, which is being
introduced by Mr. Carey, of Cleveland, providing for a switch crew
of five men on all engines, which, if passed, would make an enormous
increased cost to the American Steel & Wire Co.
A statement of cars and tonnages over the B. &L. E. R. R.for con-
stituent companies for January, 1911, is attached to the minutes.
A statement of tonnages in car loads over the E., J. & E. from
constituent companies for January, 1911, is attached to the minutes.
REDUCTION OF RATE ON SHEET BARS.
Mr. Young. Following Mr. Coakley's report, at the last meeting,
of the reduction in billet rates, I desire to state that a rate on sheet
bars has been issued of $30 per gross ton from Gary to Indiana gas-
belt points, which is a reduction of 30 cents per gross ton.
INCREASED MINIMUM CARLOAD.
Mr. TowNSEND. I would again call attention to the fact that a
move should be made to have the minimum increased on all articles
of iron and steel manufacture wherever possible. The minimum on
wrought pipe in the western trunk line, trans-Missouri and south-
western territories, has been increased from 36,000 pounds to 46,000
{)ounds at the request of the National Tube Co., and the tendency is
or large equipment, and I am a strong behever in high minimums and
low rates. It was stated by several of the members that the present
minimum on articles manufactured by other companies was as high
as would be consistent with good commercial business.
PACIFIC COAST TRANSPORTATION BY WATER.
The Chairman. In regard to the question of Pacific coast trans-
portation a committee was appointed at the request of Col. Bope,
chairman; general managers of sales committee, consisting of Messrs.
Mack chairman, Coakley, Collins, and Bentley; which committee has
prepared a report and will now be submitted in detail by Mr. Mack.
4032 TTNITEI* STATES STEEL COEPORATION.
Keport was read by Mr. Mack, accepted by committee, and sub-
mitted to the managers of sales.
A statement of car-service per diem debits and credits of con-
stituent companies for January, 1911, is attached to the minutes.
Wednesday, March 15, 1911.
The one hundred and tenth meeting of the Traffic Association, held'
in room 1817, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
Present: Traffic managers of various companies.
Address by President Farrell, of the United States Steel Corpora-
tion, urging traffic managers to assist in securing all business possible.
pee: diem.
It was reported that, the American Railway Association are now
taking mail vote of whether there shaU be any change in the per
diem charge basis, and particular attention was called, to the fact
that the question was up for vote of whether the reclaim allowed
switching line would be discontinued, with the idea that compensa-
tion for switching service should be in the hands of the trafl&c depart-
ments of the raUroads, and that nothing should be provided for in
the per diem rules that would in any way affect the proper allowances
for switching service. This would be objectionable to the corpora-
tion switching roads, which now are entitled to this reclaim, and it
was understood that wherever opportunity offered members of the
committee would use their influence toward preventing discontinuance
of the reclaim.
UNIFORM sidetrack AGREEMENT.
The following is the report of meeting held in Pittsburgh on Thurs-
day, February 16, 1911, to consider the question of uniform side-
track agreement, of wliich Mr. Young was chairman :
Mr. Young. 1 have here a proposed uniform sidetrack agreement, which you will
recall was formulated by Mr. MacVeagh after a conference in New York, at which
time he stated he could not consistently recommend to the railroads the form we
submitted, but the form as submitted by him would be satisfactory.
This matter was discussed very thoroughly, after which the following motion was
made by Mr. Bihler, seconded by Mr. Belsterling, and carried:
Resolved, That the form of sidetrack agreement submitted by Mr. MacVeagh under
dat« of December 27, 1910, to this committee be adopted by the general traflSc com-
mittee as a working basis for future agreements.
It was decided that this report be submitted to the traffic managers
at the March meeting for such action as they desired taken, but that
a copy of the proposed agreement, together with a copy of Mr;
MacVeagh's letter, be sent to each member of the traffic committee
and other interested parties, so that they might come prepared at the
March meeting to discuss the subject understandingly.
UNITED STATES STEEL CORPORATION. 4033
TRAFFIC STATISTICS.
The following is a report of the meeting of the Pittsburgh special
committee (Mr. Young, chairman)- held in Pittsburgh, Thursday,
i'ebruary 16, 1911:
There having been some misunderstanding in regard to the method of keeping the
United States Steel Corporation traffic statistics that were requested by the executive
officers of the corporation, this committee wants to emphasize that these statistics
are to consist of the tonnage carried and revenue earned by each of the transportation
companies, and not only the freight actually paid, which therefore contemplates that
the revenue shall consist of bom prepaid and collect freight, whether inbound or
outbound, which shall be computed on the following uniform basis:
1. Each company shall figure and record the data on all inbound shipments, regard-
less of by whom shipped or who paid the freight.
2. All outbound shipments, regardless of whether controlled or freight paid by
shipper, excepting shipments to constituent companies, which are to be included
only by the receiving constituent company, under Rule I, previously mentioned.
3. On shipments frbm one plant of a manufacturing company to another plant of
the same company the credit for receiving and tonnage is to be given to the receiving
plant and not the shipping plant. '
4. The freight paid by each of the manufactmiug companies to its terminal railroads
should be included, just the same as has been the practice of the Illinois Steel Co.
and the American Steel & Wire Co; i. e., not only as a matter of record of the earnings
paid to those terminal railroads, but to have the amount shown included with the
freight paid to corporation roads.
In addition to those movements from one plant of a subsidiary company to another
plant of a subsidiary company, both reached by the same line of terminal or other
railroad, tonnage and revenues should be computed and recorded as above outlined,
with the exception that revenue paid for internal or so-called intraworks movements
is not to be included.
Exception: The Illinois Steel Co. on per car switching does not want to credit the
tonnage to the last performing the service, as it reduces the rate-per-ton revenue.
The above report was unanimously adopted.
RATE ON PIG TIN.
Mr. Young. I want to report that the import rate on pig tin has
been reduced to the basis oi 23 cents per 100 pounds New York to
Chicago, compared with the former 30-cent basis, which will give a
reduction of 4 cents in the Pittsburgh district and 6J cents in the
Indiana district. I desire to state that the credit for this reduction
is entirely due to the Central Railroad of New Jersey, that road having
taken independent action after being voted down by the import
trunk line committee. I think this should be taken into consideration
when deahng with the Central Railroad.
A statement of cars and tonnages over the B. & L. E. R. R. from
constituent companies for February, 1911, is attached to the minutes.
A statement of carload tonnages over the E. J. & E. from con-
stituent companies for February, 1911, is attached to the minutes.
HARRIMAN SYSTEM.
Mr. TowNSEND. I desire to call attention to the treatment the
National Tube Co. has received from the Harriman lines. That com-
Sany has just purchased 198 locomotives, and they only favored the
'ational Tube Co. with orders for boiler tubes covering three of the
locomotives. This notwithstanding the fact that our company has
supplied their boiler tubes heretofore, and we have advertised the
fact that our tubes were being used on that great system, one of the
4034 UNITED STATES STEEL CORPORATION.
three greatest railroad systems of this country. This is referred to
particularly, because, generally speaking, boiler tubes are the only
products that our company sells to the consumer direct.
GROSS-TON WEIGHT ON SAND PIG IRON.
It was reported that the Central Freight Association had definitely
decided to apply 2,240 pounds per ton on sand pig iron, instead of
2,268 pounds, as heretofore, and no doubt this change will be pro-
mulgated by the raihoads promptly.
ROUTING.
Mr. Guy called attention to the fact that the Carnegie Steel Co. was
stiU having a great deal of trouble, particularly with western custom-
ers, over the question of routing; they not only want to designate the
route from Chicago or Mississippi River, but in many cases want to
indicate the initial line route, and with the past state of business and
the apparent willingness of competitors to give up routing, it is
rather hard to in all cases retain the control of routing as desired.
The question was raised as to who controls the routmg on shipments
for constituent companies when material is about to be delivered at
purchasing company's works. This matter was held over for the
next meetmg, when a definite decision will be reached.
GRADED RATES.
The following resolution, introduced by Mr. Bentley, of the Illinois
Steel Co., was carefully discussed, but there being a wide difference of
opinion as to the wisdom of such action in such rates by the various
companies, based on manufacturing localities and ability and inabili-
ties, it was unanimously resolved to lay the same on the table until
the next meeting:
Whereas great changes will soon occur in the bases of rates to
Pacific coast terminal points and intermediate territory, through
cases now pending before the Interstate Commerce Commission; and
Whereas much lower rates are being made from Atlantic ports via
water to the Pacific coast than are being made from Chicago and
Birmingham and Duluth territories, thereby enabling the competitors
of Steel Corporation companies located in the seaboard territories to
reach the Pacific coast at lesser freights than the corporation mills;
and
Whereas this situation wiQ be accentuated by the opening of the
Panama Canal in the near future; and
Whereas a large majority of the products of the Steel Corporation
are now manufactured (or soon will be) at western points; and
Whereas the Steel Corporation companies sell a very large pro-
portion of their products to western railroads, and it ia therefore to
our interests to do business with railroads rather than steamship
lines; and
Whereas our principal competitors are located in territory east of
Chicago with only one comparatively small mill west;
Resolved, That it is the behef of this committee that the time has
come when we should advocate graded rates, namely, lower rates
UNITED STATES STEEL OOBPOKATION. 4035
from Chicago, Duluth, and Birmingham than from the mills east of
them.
Mr. TowNSEND. I want to say that there is no question but what
graded rates are sound, but rates should be made according to the
point of production. The geographical location of a plant should be
taken into consideration, and we certainly do not want the rates
graded uphill. That is what the transcontinental lines are attempt-
mg to do with our goods. I am in favor of the Pittsburgh basis and
graded down to Chicago, but when they start at Chicago and come
east, grading the rates uphill, I certainly rise up and say they are
wrong. We have been talking consistently right straight along for an
increased minimum in order to make the traffic desirable to the rail-
roads, and they have not increased it above 40,000 pounds.
A statement of car service per diem debits and credits of constituent
companies for February, 1911, is attached to the minutes.
Wednesday, April 19, 1911.
The one hundred and eleventh meeting of the Traffic Association,
held in room 1817, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.]
There were present traffic managers of various companies.
(Included in minutes is a letter of Mr. Townsend as to the size of
gondola car, containing statement of increased average weight per car-
load as follows) :
Average weight per carload: Ponnds.
1906 62,000
1907 66,000
1908 76,000
1909 76,000
1910 76,000
Average weight per carload: Pounds.
1900 44,000
1901 46,000
1902 48,000
1903 50,000
1904 56,000
1905.. 58,000
This, you will observe, is an increase in the average load per car of 73 per cent
* * *. At all events you may be sure of one thing, tljat we will double the load of
10 years ago and give you 88,000 pounds of an average instead of 44,000 pounds, or an
increase of 100 per cent.
A statement of cars and tonnages over the B. & L. E. K. R. from
constituent companies for March, 1911, is attached to the minutes.
A statement of carload tonnages over E. J. & E. from constituent
companies for March, 1911, is attached to the minutes.
KATES, PITTSBURGH VERSUS BUFFALO.
It was reported that from a railroad standpoint there has been a
readjustment of class rates as bewteen Pittsburgh, Erie, Philadelphia,
and Buffalo, which will have the effect of advancing the five class rates
from Buffalo to many points in southern Indiana, Ohio, and Michigan
40 cents a ton, and Cincinnati will go up 30 cents a ton.
There will be a recheck of these rates, and it will probably be 90
days before the matter is settled.
It was explained that the Milwaukee rate situation is still unsettled.
4036 UNITED STATES STEEL CORPORATION.
CAR SERVICE PER DIEM.
Mr. TowNSEND. I desire to call attention to the credit of $9,073.52
on per diem by the Union Railroad during the month of March, and
if they do not cut down their time to four days I wall be surprised. I
have been a four-day man first, last, and all the time, and I think if
during the winter months theycau show such a large credit theyshould
come to our basis, four days.
Ml'. BiHLER. We have been working on a four and-a-half-day basis
for some time to see what we could do, tliinking that possibly we would
be forced later to accept four days, but it has been my understanding
that if you voluntarily accepted four days now it would have the effect
of forcmg tlie Newburgh & South Shore Railway to accept the same
basis, which they do not want done.
Mr. CoAKLEY. We do not feel that we can work on a four-day basis.
^ix. Bentley. The Ilhnois Steel Co. are unable to report demur-
rage for the month of March due to a dispute ^^^th the Elgin, Joliet &
Eastern Railway Co. regarding the bills.
We were accorded an arbitrary of 24 hours by the E. J. & E. between
the time cars arrive at their junction with outside roads and the inside
junction or interchange tor constructive delivery. Under this
arrangement we had managed to cut our demurrage fown to 11,000
per month, but the E. J. & E. have cut this 24-hour arbitrary out,
which practically puts us on a demurrage at the time of arrival of cars
:at their junction, oef ore moving the cars into our works, so that we
are holding up the bills until this matter can be settled.
It was explained by several of the members that the rules provide
for a constructive deUvery on average agreements from or to an agreed
interchange point and that the Illinois Steel Co.'s action is in accord
with what other companies do under similar circumstances.
A statement of car service per diem debits and credits from con-
stituent companies for March, 1911, is attached to the minutes.
Mr. Belsterhng, in discussing the practice of milling in transit,
stated that "ehminatin^ the practice, we add about $2 per ton to the
freight cost of seven of our plants " (i. e., bridge and structural plants).
Wednesday, May 17, 1911.
The one hundred and twelfth meeting of the TrafTic Association,
held in room 1446, Commercial National Bank Building, Chicago.
(Initialed: W. B. S., E. W., J. D. C, T. A.)
There were present traffic managers of various companies.
W. L. Louis was elected traffic manager for the Elgin, Joliet &
Eastern Railway Co. in place of Mr. F. E. Learned.
WEIGHT OF SAND PIG IRON.
Mr. Bihler reported that the proposition to change official classifi-
cation to call for weight of 2,240 pounds per ton of sand pig "iron
instead of 2,268 pounds, as at present, had not carried, and that the
present basis would probably be continued.
A statement of cars and tonnages over the Bessemer & Lake Erie
Railroad from constituent companies for April, 1911, is attached to
the minutes.
UNITED STATES STEEL. OOEPORATION. 4037
A statement of carload tonnages over Elgin, Joliet & Eastern from
constituent companies for AprU, 1911, is attached to the minutes.
KEBILLING IN TRANSIT.
Mr. Davis. We have had some difficulty recently in handling
rebiUing in transit with one road in the Chicago district, the Chicago,
Milwaukee & St. Paul Railway. We have been following the prac-
tice as outlined in resolution adopted by the committee that consid-
ered this question on August 16, 1910, by using the general office of
the railroad company as the forwarding agent, by which constructive
delivery at recommencing point is taken. The Chicago, Milwaukee
^fe St. Paul will not recognize any such arrangement. I have put the
' matter up to our attorneys, and Mr. Knapp has advised that the
practice was a very dangerous one; while he was not fully satisfied,
he says we are running a great danger if we continue.
After discussion the matter was left in the hands of the committee
handling transit privileges, of which Mr. C. S. Belsterling is chair-
man, to consider this question and report further at the next meeting.
A statement of car service per diem, debits and credits of constitu-
ent companies for April, 1911, is attached to the minutes.
Wednesday, June 21, 1911.
The one hundred and thirteenth meeting of the Traffic Association,
held in room 1817, Empire Building, New York.
[Initialed: W. B. S., E. W., J. D. C, T. A.)
Present: Traffic managers of various companies.
Fabrication in transit to be submitted to the president.
EECONSIGNING.
Mr. KoRNDOEFF. Arrangements have been made with Suderman
& Dolson at Galveston to reconsign all our Texas shipments at $1
per car hereafter, they to assume all responsibility for errors.
PER DIEM RECLAIM.
Mr. CoAKLEY. I would like to inquire of Mr. Townsend, chairman
of the car-service per diem committee, as to what action he is going
to take to prevent the proposition to abolish Rule V, covering reclaim.
The Chairman. Mr. MacVeagh had this matter up in conjunction
with the terminal matter, but could not get the Pennsylvania, New
York Central, and Baltimore & Ohio to agree, so it is up to us to do
what we see fit. I would ask Mr. Townsend to find out what the
result was of the vote taken on this subject by the railroads.
A statement of cars and toimages over the Bessemer & Lake Erie
Railroad from constituent companies for May, 1911, is attached to
the minutes.
A statement of cars and tonnages over the Elgin, Joliet & Eastern
from constituent companies for May, 1911, is attached to the minutes.
4038 UNITED STATES STEEL COKPOBATION.
swrrcHiNG.
Mr. Young called attention to the fact that at some points the rail-
roads had failed to include in their tariff provision for charge to cover
second placing of a car to finish loading or unloading. He stated that
the matter was up with the railroads m the Pittsburgh district to try
to establish a uniform charge of 50 cents for each additional move-
ment within a miU yard beyond the one free placing of car to load or
unload, and suggested that other interested companies cooperate and
take similar action.
Mr. TowNSEND. I wish to say that we went over our different plants
at the request of Judge Gary, and the only one that we feel that
there is intermUl switching being performed "by the railroad was that
at Kewanee Works. Last week I asked General Freight Agent
Puffer, of the Chicago, Burlington & Quincy, to restore the tariff of
60 cents for a carload or part car.
WAVERLT WAREHOUSE.
Mr. Young reported that satisfactory arrangements had been made
with the Pennsylvania Railroad to continue biQing export freight to
Waverly at the export rate, and to check up at regular intervals of
six months.
Mr. TowNSEND. We have taken the position with the Pennsylvania
Railroad that we do not want to follow the plan of the American
Sheet & Tin Plate Co., as it is an endless job. Our Waverly material
is aU export, therefore there should be nothing to check.
Mr. BiHLEK. The matter has not been entirely settled by our com-
pany as yet.
SWITCHING.
Mr. Belsterling. We had a very interesting informal case before
the Pennsylvania State railroad commission, in which some $30,000
were involved.
The published rate for local intrastate switching was 20 cents, or
about $10 per car in Pittsburgh. The railroad had issued new rate
order at $3 per car and the Pennsylvania Railroad had previously
quoted, by implication, SI per car switching between our Keystone and
Shiffler plants. Judge Ewing, of the commission, sustained our con-
tention that the railroad's quotation of $1 per car held good and the
interstate tariff, or rate order, had no bearing on it whatever, for the
reason that the shipper had no notice of the change in rate. This was
accepted as final. Assistant General Freight Agent Wright, of the
Pennsylvania Railroad, and I went before the commission and went
over the whole matter on point of law, and Judge Ewing takes the
position that where the railroad quoted a rate in Pennsylvania, that
that rate is the basis of the contract.
EESHIPPING.
Mr. Belsterhng, chairman of committee on transit privileges, sub-
mitted the following report:
The meeting of the committee on transit privileges was held in
room 1817, at which meeting a letter was read from K. K. Knapp,
UNITED STATES STEEL COEPOKATIOK. 4039
concurring in the recommendations adopted in a meeting held August
16, 1910, on the subject of reshipping, and at Mr. Knapp's suggestion
the following additional rtde in the nature of a caution was added to
the minutes of the previously mentioned meeting:
6. The important point to be kept in mind is that (1) the shipment to the first desti-
nation should be made one distinct transaction, covered by a distinct contract, and
the shipment to the second destination should likewise be made one distinct trans-
action, covered by a distinct contract; and (2) nothing should be done which may
make the two shipments appear to be really one transaction or arrangement disguised
i8 two.
The meeting unanimously adopted this recommendation, and the
report of the special committee was accepted.
A statement of car service per diem debits and credits of various
companies for May, 1911, is attached to the minutes.
United States Steel Corporation Traffic Association.
(Initialed: W. B. S., E. W., J. D. C, T. A.]
FABRICATION IN TRANSIT.
The following resolution was introduced by Mr. Bentley at the
traffic committee meeting held in New York Wednesday, June 21,
1911:
Whereas the practice of allowing structural and bridge steel to be stopped in transit
for fabrication at through rate to final destination has been granted by publication of
the carriers to many points and is being rapidly extended to the remaining points; and
Whereas the grantmg of this privilege has the effect of removing geographical loca-
tion advantages in placing the most poorly located plants on a parity with the best
located plants, and
Whereas the principle thus coming to be recognized as a standard is causing many
other lines of trade to demand the same for their products; and
Whereas it is not the province of railways to discriminate between industries or to
so arrange their rates as to deprive the shippers of their natural location and shipping
advantages; and
. Whereas the growth of this principle is against the individual interests of our various
companies, which have many plants located at either the primary steel-producing
plants or at primary rate-breaking points, which do not require a f abricatiag-in-transit
rule: Therefore
Resolved, That we favor the cancellation of the fabrication-in-transit rules from the
various railway tariffs.
(Mr. Bope wrote under date of May 24, on behalf of the Carnegie
Steel Co., recommending that the milling-in-transit matter be left in
status quo, and "some of our particular customers are interested along
with our sister company, the American Bridge Co., and we believe it
would be unwise to raise any question at the present time.
"In any event it is a large question of policy which it seems to us
is for the steel corporation and the presidents of the constituent com-
Sanies to decide, and therefore, from the selling standpoint of the
amegie Steel Co., we would prefer to refer the matter to that body.")
*******
Mr. Bentley. The resolution regarding fabricating in transit now
before the committee was drafted for the purpose of bringing out the
discussion of a question which directly affects several companies, and
if the practice is extended may possibly later affect other companies.
* * * The usual form of tariff covering this practice provides
that the through rate to final destination should be protected by
4040 UNITED STATES STEEL COBPORATION.
charging the full tariff rate to the designated fabrication point, and
then take the difference between that and the through rate for the
haul from the fabrication point to the final destination.
It is our practice to sell the fabricator at his place of business by
using the price at Pittsburgh plus the freight from that point. It
would seem difficult if not impossible to sell to the final point of use
of the fabricated article, as the identity of the goods can not be pre-
served, and but few fabricators buy their plain material for a particular
job rather than keeping an assorted stock of plain material on hand,
which may be bought at various points of origin, which may be used
when a particular job is fabricated.
Where the through rates from Pittsburgh to the final erecting point
of material thus fabricated in transit is less than the sum of the
Pittsburgh locals on Chicago, it therefore directly affects our sales
and forces the fabricator to buy from some eastern manufacturer.
Attached hereto is a statement of points in Oklahoma, showing the
advantage that the fabricator at tlie Missouri River receives by buying
East, vaiying from one-half to 9J cents per 100 pounds. These
Missouri River fabricators also have an advantage of 5^ per cent per
100 pounds to all Texas points and to points in New Mexico and
Arizona, which base on the El Paso combmation.
Our sales people estimate that last year two Missouri fabricators
marketed 5,000 tons in the above-described territories. When these
fabricators are forced to go East for their tonnage, if our people seU
them, the corporation sustains a loss of $3.50 per ton higher freight
cost from Pittsburgh than would have accrued if shipped from Chicago.
If these conditions as outlined are serious enough to warrant atten-
tion, it therefore brings in the question of operating, and possibly in
the capital account on the corporation if changes in operation are
made.
As I look at it, this practice increases our competition by enabling
concerns located at unnatural points to compete with those located
at natural points (for instance, Cincinnati fabricators have this
privilege extended to them from Pittsburgh, which enables them to
compete in Chicago on practically the same basis as the mills located
at Pittsburgh or Chicago) ; and it is natural to assume that the greater
the competition the less opportunity our fabricating mills have to
make sales.
Attached hereto is a statement of known sales in Chicago territory
for the first quarter of this j'ear, showing by whom the contract was
taken and from what mill the plain material was purchased. If this
privilege of fabrication in transit was not permitted, a large amount
of this business might have been secured by the corporation companies
instead of by those who got same; and the more outside concerns
compete in this market the less this company can sell the local fabri-
cators or compete for this territory's business, and it should not be
lost sight of that even if sold by our own companies East there is a loss
in freight on such plain material of $3 per ton as against sales made
by us from Chicago miUs.
UNia?BD STATES STEEL COEPOKATION.
OKLAHOMA POINTS-STEUOTURAL IKON (L. L.).
4041
Chicago.
Through
rate.
To
Missouri
River.
Be-
yond.
Differ-
eatial.
Pittsburgh.
Through
rate.
To
Missouri
Eirer.
Be-
yond.
Ada
Altus
Ardmore
Bartlesville
Chickasha
Durant
Enid
ElKeno
Guthrie
Hugo. .,.
Hooart
Lawton
Mangum
Muskogee
McAlester
Medford
Oklahoma City
Byan
Sallisaw
Shattuck
Tulsa
Tezhoma
Texola
Vinita
44i
44i
44J
44i
44J
44i
44i
44i
44J
\«,
Ui
44i
44i
44i
44i
44i
44^
44i
Hi
44i
44i
44^
44i
ILLINOIS STEEL CO. SALES DEPARTMENT.
Struetural and bridge contracts let in Chicago district involving SOO tons or over.
[Summary ol tonnage shown on previous sheet No. 7.]
Tons
United States Steel Corporation ' 27, 066
Bethlehem Steel Co 13,318
Lackawanna Steel Co 9, 148
Pennsylvania Steel Co 2, 50O
Taken by fabricating shops outside this district whose sources of steel supply
we have not learned 5, 265
Not purchased 2, 854
Total 60,151
Stenographic report of Mr. Belsterling's reply to Mr. Bentley in
the matter of the abrogation of the fabrication-in-transit practice on
structural and bridge steel:
Inter alia Mr. Belsterling said —
There is only one other pertinent fact I wish to attract your attention to, namely,
that at the time of the formation of the American Bridge Co. 80 per cent of its plants
were enjoying transit privileges granted months prior thereto. * * *
As a concrete example, let us take the case of two shops located on the Wabash
Railroad, the one at Toledo, Ohio, and the other at St. Louis, Mo. — the material is
rolled at Pittsburgh, the ultimate destination is Kansas City. If the property is
fabricated at the St. Louis shop, the rate is $1.80 per ton less than if fabricated at the
Toledo shop. Without the transit privilege the shop at Toledo is unwarrantedly
discriminated against. The railroads recognize this discrepancy and accord to the
Toledo shop a rule to enable it to market its product upon the same relative basis as
its competitor located at St. Louis. Natural advantages are not overcome thereby,
to the contrary unnatural practices are done away with and the Toledo plant is granted
the benefits of its natural location, it being along the highway of travel from Pittsburgh
to Kansas City the same as is the St. Louis plant. * * *
The commission always regarded reconsignment as a privilege and not a right to be
demanded by a shipper. A railroad company may allow bars to be fabricated in tran-
4042 UNITED STATES STEEL CORPOEATION.
sit and at tte same time lawfully refuse to permit the conversion of steel from billeta
to bars en route. * * *
To exemplify, Mr. Bentley claims the adjustment of earnings between the railroada
on traffic stopped at the Missouri River operates^ a^inst the Chicago district. Mr.
Young has shown that this so-called adjustment is simply a matter of divisions and
undoubtedly could be fixed satisfactorily by consultation with the lines at interest.
In reply to this suggestion of Mr. Young, of the Tin Plate Co., Mr. Bentley in his
brief makes this remarkable statement: "To get the railroad companies, particularly
in the West, to so amend their arrangements that the rates outbound from the fabn-
to pass the Interstate Commerce Commission as legal.'
Such a reply is not convincing to a man trained in Federal commerce. We have no
fabricating tariff under which we are operating which gives to the man from the
original shipping point to the fabricating point the full local rate. When the busi-
ness is reconsigned the through rate is divided upon the same basis as if the business
had not been stopped in transit for working — it is not the usual custom to do otherwbe,
as has been stated. If the Missouri lines are doing differently than this it is the rare,
very, very, very rare exception and not the general rule. I have consulted with
some of the leading traffic experts of this country and they all concede that from the
standpoint of a publication conforming to the law and the tariff rules of the commis-
sion, there is nothing to prevent publishing proportional rates applicable from Kansas
which will be a fixed amount to apply irrespective of the initial point of shipment
upon shipments fabricated in transit at Kansas City. As Mr. Young has so aptly
stated, "Provision may be made for a flat billing rate from Kansas City, the same
regardless of point of origin, subject later to readjustment as between railroads. The
whole thing is simply a matter of bookkeeping which could be fixed by confer-
ence. * * *"
Like the ordinary layman unversed in transit matters the Federal commiaaion, in
its first report, originally urged that the act to regulate commerce does not sanction
arrangements of this kind, and early in its history it intimated that such might finally
be its conclusion. Through the slow but sure process of education, the commission
has changed its views so that in its eighth report it said: "To abrogate these privileges
would be to confiscate thousands and probably millions of dollars in value by rendering
worthless individual plants which have been constructed upon the faith of their con-
tinuation. Nor is it a forced construction of the statute to hold that when the product
finally goes forward to the point of consumption, it but completes the journey upon
which it entered when the raw material was taken up. There can be do doubt that
the application of this principle has cheapened the cost of transportation and probably
of manufacture."
Since this decision, the various transit prices have many times been before the
courts, many times reaching the Federal Supreme Court, and "they still live." The
Federal commission within a year has exhaustively investigated the transit rules on
all commodities and nothing was done to disturb any of the prices.
Under these circumstances, for this committee to recommend, as has been suggested,
the closing of our outlying bridge plants, which were acquired for the purpose of
utilization and not of destruction, is stepping far beyond the scope of our authority,
It would certainly be a very radical step. The advantages of having these outlying
plants are innumerable — ^advantages which I shall not dwell upon to-day. For the
Bridge, Carnegie, and Illinois Companies to defend such a policy would be commer-
cial and legal suicide. The Bridge Co. competitors are the customers of the Carnegie
and Illinois Steel. Admitting for the sake of argument that the abrogation of thij
practice would inure to our benefit, when in fact it would not, we dare not lawfully
ask for discrimination in our favor. All that we should and do demand is that the
avenues of commerce be kept open to all upon an equal basis— beyond this we should
not go. In conclusion, let me briefly summarize. I have proved the following facte:
1. The fabricating in transit privilege is one of long duration and not of recent
investion.
2. The practice is not a discriminatory one — it is granted solely to open the avenues
of transportation to all structural steel fabricators on the same basis.
3. The privilege bears no relation to any other commodity — the railroads are not
required to extend it, nor is there any disposition to do so.
4. It is not against the interests of the several companies — ^not one subsidiary com-
pany desires it disturbed save the Illinois Steel Co., and their reasons therefor are
fictitious and not factitious.
UNITED STATES STEEL. OORPOEATION. 4043
5. The arguments concerning Oklahoma and Texas are hypothetical — if an injury
to Chicago does exist it could be very readily remedied by conference with the trans-
portation lines at interest.
6. The statement of known sales in the Chicago territory proves conclusively that
this privilege of itself has nothing to do with the sales of the Illinois or the Indiana
Steel Cos.
7. The only tangible thing proved by Mr. Bentley is that it cost $3.60 per ton to
transport steel from Pittsburgh to Chicago, a matter of common knowledge.
For these reasons, Mr. Chairman, I ask that we refer this question to the presidents
of our respective companies with the recommendation that nothing be done to alter
the existing practice, and I ask fm-ther that you one and all join with me in writing
this epitaph upon the subject "Requiescat in pace " (let it rest in peace).
United States Steel Coeporation,
Wednesday, August 16, 1911.
The one hundred and fourteenth meeting of the Traffic Association,
held in room 1817, Empire Building, New York.
There were present traffic managers of various companies.
A statement of cars and tonnages over the B. & L. E. R. E. from
constituent companies for June, 1911, is attached to the minutes.
A statement of cars and tonnages over the E. J. & E. from con-
stituent companies for June, 1911, is attached to the minutes.
PER DIEM RECLAIM.
Mr. TowNSEND. As chairman of the car service per diem commit-
tee, and in accordance with the request made by Mr. Coakley at the
June meeting, I beg to report the result of the vote taken on Ainerican
Railway Association Circular 1091, which proposed a letter ballot to be
taken on question of elimination of per diem reclaim to all terminal
or switching roads.
Secretary W. F. Allen issued Circular No. 1113, giving the result
of the. letter ballot as follows:
Yes, 164 memberships, representing 1,375,071 cars owned and
controlled.
No, 111 memberships, representing 653,842 cars owned and
controlled.
Not voting, 77 memberships, representing 335,555 cars owned and
controlled.
The proposition to eliminate the per diem rule 5 is therefore lost.
While the per diem reclaim was saved by a close margin, there can be
no question but what the letter ballot is a dangerous proposition in
a matter of this kind, and every effort should be put forth by our
committee to have our railroad friends endeavor to have this question,
if it is to be brought up again, fought out on the floor of the associa-
tion, for many of the railroads have no particular interest in this
subject and usually vote according to the recommendation of the
chairman if submitted by a letter ballot, for they are not in a posi-
tion to vote understandingly unless the question is discussed at the
meeting.
internal SWITCHING.
It was reported that there were some irregularities in certain service
at the various points not covered by the association, and the different
railroads have been asked to adopt a reasonable rate for the second
movement inside the mill.
31572— No. 53, pt, 2—12- 20
4044 UNITED STATES STEEL COBPORATION.
The Youngstown committee, at a meeting last week, arranged a
minimum charge of $1.50 per car to be made for each movement
confined to a smgle plant when necessary to permit the partial load-
ing or imloading, the same to apply on carload shipments on which
the carriers enjoyed a road haul beyond shipping limits at point where
service is performed. The same rate wUl also apply on shipments
originating and termiaating within the switching limits of the dis-
trict in wmch the jjlant is located and will be in addition to the charge
covering the service from the initial plant to receiving plant.
This rate will also apply to ore moved as follows: Stock pile to
unloading point or track; stock pile to thawing plant; thawing plant
to unloamng point or track.
A statement of car service per diem debits and credits of various
companies for June, 1911, is attached to the miautes.
INDEX TO MINUTES OF CARNEGIE STEEL CO. (PA.), FROM
APRIL' 1, 1910, TO MARCH 26, 1903, AND CARNEGIE STEEL
CO. (N. J.), FROM MARCH 26, 1903, TO JULY 31, 1911.
CARNEGIE STEEL CO.
Agricultural people buying and opposing Steel Trust Feb. 25, 1907
Agricultural people (outside International Harvester Co., which makes
all steel they use) have tonnage of 300,000, which is insignificant
compared with total Feb. 17, 1908
Agricultural Implement Association, conference with two members,
no concession made May 27, 1907
Aldrichbill June 7,1909
Alliance with Standard Oil Co. and car companies Feb. 8, 1909
AUis-Chalmers Co., advance payments to Sept. 2,1907
American Car & Foundry Co., endeavor to get them t» close down their
bar mills and buy of Carnegie Co. 300,000 tons a year Mar. 16, 1903
American Steel Hoop Co. :
Contract with Illinois Steel Co. to pay them $150,000 to stay out of
cotton tie business ,. July 30, 1901
Made most money on skelp Nov. 19, 1901
Armor Royalty protection to this extent with Harvey Co June 27, 1904
Axles Works at Keystone, auction of Jan. 7, 1902
Axles, extraordinary competition in, reported July 18, 1904
Bethlehem already withdrawn from market because they can not meet
Illinois prices on account of freight Mar. 22, 1909
Bessemer & Lake Erie Railroad Co.:
Carr3dng tonnage, 800,000 tons yearly June 25, 1901
$565,000 earnings, 1902 Feb. 16,1903
J. G. Butler, jr., of Valley Pig Iron Association, effect of purchases of
pig iron to raise price Apr. 1, 1901
Butler wanted advance of 25 cents in pig iron Jan. 7, 1902
Cambria S. S. Co. stock subscribed for through Mahoning Ore & Steel
Co Jan . 22, 1906
Car companies, alliance with Carnegie Co Feb. 8, 1907
Carnegie Steel Co.:
Earnings, total 1902 Jan. 27, 1903
$43,803,000, earnings 1902 Feb. 16,1903
25 per cent dividend Dec. 30, 1903
Carnegie Steel Co. of Pennsylvania, operating contract Dec. 26, 1905
Cement profits, etc gjy ^g'\l^
Chapin Mining Co. sold to Minnesota Iron Mining Co Oct. 25, 1909
Ckirton Steel Co.: -^
Oper?ting contract Jime 20, 1904
Sales through net nic3 figure M?r. 20, 1905
Is what W8S expected, a decided success Aug. 7, 1905
Coke Co. contract compels Coke Co. to carry investment while Carnegie
owns the coke June 11, 1901
Columbus Store Co. , one-third interest bought Jime 11, 1906
Competitors have to buy billets for axles at price which allows only $2
per ton for conversion July 18, 1904
Competition eliminated ; Eastern Steel Co. in bad condition. This will
eliminate all our competition outside of Bethlehem July 1, 1907
Competition, monthly reports of Apr. 18, 1910
Competitors:
Follow le?d of Carnegie Co Sept. 20, 1909
Holding down runaway market Oct. 25. 1909
4045
4046
UNITED STATES STEEL COHPOEATION.
Competitore — Continued.
Willing to Hurrendcr the riRht to route material which Carnegie Co.
always insisted on havin:; left to (anioL'io Cn Jan.
Weakness, when demand not equal to production, competitors
have to cut under our pricoH lo (,'(!t thi; business Mar.
Jones & Laughlin compelled to put out new issue $10,000,000
bonds, having used first ifwuo of $15,000,000 May
Constituent companies meeting Apr.
*Vi(ton-tie bu.'fino.f.H, Slecl Hoop Co. had contract with Illinois Steel
Co. to pay them .?] 50,000 to stay out of cotton-tie business July
Cooperation with stool poople by bar-iron people Fob.
[Dec.
Cooperation Feb.
Mar.
Cornell, J. B. & .1. .M,:
Method of dealing with , Juno
Voting-1 rust at,'rr;emei]t , July
Costs of Curiiegie (',<>. Ichh than any othor company Oct.
Cramp Ship Building < n. :
Bond iHHue Fob.
(Jame^e Cu. would ha\ i^ to decide what to bid on nc^w cruiser Feb.
Bond issue postponed Mar.
To be controlled by three voting tru.Mlec.s May
Crucible Steel Co.:
Contract of Carnegie ('o, to supply their entire raw material May
Coritraet, see effect upon of high prices Dec.
Democratic platform July
Dividends (25 per cent Carnegie Co., 100 per cent Pittsburg Steamship
Co., 2.50 per cent Oliver Iron Mining i'ai.) Dec.
Dominion Bridge Co .lold 26,000 tons of material Sept.
Earnings, 1902 (Frick Coke Co , $172,000; Bessemer & Lake Erie R. R.,
$465,000; Oliver Iron .Mining Co., -14,470,000; Carnegie Steel Co.,
$43,803,000j Feb.
Total Jan.
Executive committee in New York must approve all expenditures
over 110,000 Apr.
Export business:
Harlan & Wolff, Belfast, Ireland May
Tehuantopec R. R., Mexico July
Export figures prepared July
Export .Helling a^'ency, what to be sold through Aug.
Semifinished [irodiicts, exporting Aug.
Canadian plant of American Steel & Wire Co Aug.
Ex[jort company lo be charged for prices, which said export com-
pany can gel , Ich.- 5 |jer cr-nt Apr.
Lancashire A York^'tiire R. i;., Hale of rails to July
Argenline Ilepulilic proposilion financed by J. P. Morgan, so it
goes to Carnei.'ie Co Mar.
We.Ml AuHlralian lioverrimentsaleH to Carnegie ('o Apr.
llalian (ioverniiieril bids of, arranged for July
P'orei^'i) competition.
Shi|inientfl from Germany at .Sl.'7.."jO delivered at '^'oiing.itown,
Obio, lariff being .16.110 per Ion Jan.
Fearer] if prices are made.higher Oct.
Frick Coke Co., .$'),172,0O0 eamint,'H IllOL' Feb.
General mana[5er^ of naU-^, meetings referred to Jan.
18 Ginnins Company's stock who favor June
Square bale, sale recomiijended
Square bale, recommend er] June
Government inve.stigation J June
M. A. Hanna, contract to pay them one-half cent Ion on all ores used by
National Co., 10 centa ton Chapin, and 7i cents Winthrop mine, out-
side National Co., can not cancel Feb.
Import salcH, ehipmeniH from ('•'■nua.ny at $27. ."jO delivered at Youngs-
town, Ob io, tariff $6.90 Jan.
Illinoifl price can not be met by Bethlehem, which has withdrawn from
West on account of freight .Mar.
3,1911
20, 1911
29, 1911
30, 1901
30, 1901
10. 1908
21,1908
22. 1909
1, 1909
18, 1901
3, 1911
22, 1901
16, 1903
16, 1903
10,1903
4, 1903
2,1904
3, 1906
6, 1908
30, 1903
5, 1903
16, 1903
27, 1903
23, 1901
21, 1901
20, 1903
20, 1903
17, 1903
24, 1903
31, 1903
4,1904
11,1904
22, 1909
3,1911
3, 1911
7,1902
11,1!»0!)
16, 1903
27, 1903
15, 1908
8,1909
11,1906
14, 1907
24, 1902
7,1902
22, 1909
UNITED STATES STEEL. OORPOEATION. 4047
Indepi'iidiMits:
Sales to, reduced to minimum Dec. 12, 1904
,, ,,. „ , . /Mar. 8,1909
GcUing all businees j^j^^ ;^g| ^909
India mining, loaee at Ukwa property, Balaghat, India, purchased. . . . Mar. 18, 1907
InvpMligation would not reveal irregularity in Union Bank's omission
lo iliiirfjo terminal charges Sept. 16, 1902
Interiuilional Harvester Co. (which has plant in Hamilton, Ontario).
II. was necessary to quote so low that Carnegie Go. let the business
pass July 6,1903
International Harvester Co.:
Prices q noted ' ' while this is below the market, it was anticipated we
shoultl have to make a special rate to these people in view of their
position as manufacturers" July 27, 1903
Handling "almost everything the farmer buy?" and having their
own Bt<'(>l ])lant have caused serious competition to agricultural
people. Carnegie reduced price to agricultural people only for
15 days. Action against Steel Trust threatened Apr. 2, 1906
Makes all steel they use — remaining agricultural people have ton-
nage 300,000 which is insignificant compared with total Feb. 17, 1908
And State of Kaiisati have special agreement as to prices Feb. 8, 1909
Contract referred lo July 10, 1911
Jackson Iron A\'orks:
Comiielitor of Bridge Co., method of dealing with June 18,1911
Owes C^arnegie and Now York banks Mar. 16, 1903
Jones & Laughliu eoiopelled to put out new issue of $10,000,000 bonds
having used first issue of .115,000,000 May 29, 1911
Kansas & Inleniational Harvester Co., have special agreement as to
j.riiea Feb. 8, 1909
Kiniberlev Mills properly sale Aug. 15, 1904
Lake Superior Consolidated Mines, ore purchasing contract which pre-
Timted ('arnegic^ Co. receiving any reduction on rail freights cancelled. Feb. 24,1902
Loan special made by Carnegie Co., of United States Steel Corporation
at request of Unilod Stales Steel Co July 24,1905
Merger, Ihe Carnegie Co., National Steel & American Hoop Co Mar. 27, 1903
Millikon Bros.:
Failure was simply duo to the fact Ihat supply and demand have
been such Ihal finished prices eould not go up and raw material
being so scarce prices were raised on it June 24, 1907
Will cause comiielit.ion if lliey get out of hands of receivers Nov. 9, 1908
Minnesota Iron Minuig Co. bought \Viuthrop & Chapin Mining Co Oct. 25, 1909
Morgan, J. P.:
To be consulted about big contract Apr. 1, 1901
Assistant seen about outstanding stock National Steel May 21,1902
Morgan, J. P. A Co.;
A\'ould not at first permit National Steel Co. to place loan in Pitts-
burgli Feb. 3, 1902
Financing Argentine Republic proposition so it will come to Car-
negie t^o. . .'. Mar. 22, 1909
National Steel A Steel Hoop Co., consolidation preferred to lease reason
given July 1, 1901
Nat ional Tube Co., earnings total 1902 Jan. 27, 1903
Notes to be issued for special loan at 5 per cent July 10, 1905
Oliver Iron Mining Co.:
Earnings, IDOL', $4,470,000 Feb, 16,1903
250 per cent dividend Dec. 30, 1903
Contracts removing possibility of their going into manufacture of /June 27, 1904
steel ' lApr. 3, 1905
2,000 shiu-os of, to bo bought for $2,250,000, and stock of Carnegie
Sleol Co. to bo increased to do this Nov. 20, 1906
Open-hearth steol:
The tendency is steadily for Aug. 28, 1906
Rails are twice as good as Bessemer rails Mar. 19, 1906
Park Steel Co., contract ^ {li^y 28^ 1901
4048
UNITED STATES STEEL COEPOEATION.
Pig iron:
Carnegie Co. can not maintain fictitious market for, because sales
for low prices must be considered eventually
Fixed at $14.50
Fixed at $15
Fixed at $16.50
65,000 bought for $3 quarter, in assurance this was all in the market,
as Corey says largely for the purpose of preventing the furnace
people from offering it around and thus demoralizing the mar-
ket
For same quarter "all the surplus iron of Valley Association" and
option from W. P. Snyder on 30,000 tons — "of course we want
to pay them as much as the finished material will stand "
Price to be discussed in New York to-morrow (May 19, 1903)
All on market bought (22,000 tons)
High prico, leaving only $3 or ?4 per ton above price of pig iron
for finished material
C. P. Milliken failure
$16.50 Valley, and billets $28
How to mamtain such large differential without some effect on
market is the question
Pittsburgh Steamship Co. :
100 per cent dividend
Capital stock increased to $7,080,000, and additional $6,550,000
bought by Carnegie Co. for Pittsburgh Steamship Co. notes. .
Political conditions
May
Sept.
Dec.
Jan.
7. 1901
24, 1901
23, 1901
7. 1902
May 11,1903
May
May
Apr.
Dec.
June
Jan
18, 1903
18, 1903
3. 1905
3. 1906
24. 1907
20. 1908
Jan. 27, 1908
Dec. 30,1903
Presidential contest.
Presidents' meetings referred to
Presidents' meeting, fixing prices
Prices:
Low, unsatisfactory to eastern manufacturers
Used in inventories, decided by finance committee. New York. . .
Cutting, eastern makers not hesitating to say they have done so . .
Higher than steel can be imported into this country
Eail committee to accept specifications this week and negotiation
between railroad companies and mills
Bails:
Agreed price T. C. I. & R. R. Co. selling $2 above agreed price. .
Price conference with railroads
Price, $25 low enough to satisfy railroads
Price fixed for 1909 at $28 (Bessemer $30), open hearth
Railway Steel Spring Co., contract nominally for 1 year, but under-
stood to cover number of years at profit of $5 to $8, and including
75 per cent of their requirements
RepullicCo.:
Agreement wanted in definite shape so Republic can't push Car-
negie
Mr. Corey states Republic can not afford to be antagonistic to
Carnegie
Sellin<;.at a loss to force smaller mills to shut down (What were
U. S. S. C. price?)
Fixed price $13, reported that it had offered foundry iron at $12.85,
equivalent to $16.50 Pittsburgh
Sales to r.onstituent companies will form a great deal of Carnegie Co.'s
business
Sales reports to include pig iron and scrap, due to constituent companies
Schoen Steel Wheel Co. bought
Sharon by-product coke plant
Sherman antitrust act
Skelp:
American Steel Hoop Co., made most money on
Preferential in favor of tube company
Oct.
25, 1909
July
13, 1908
Oct.
12, 1908
Oct.
26, 1908
July
20, 1908
July
1, 1902
Nov.
20, 1905
Oct.
11, 1909
Oct.
11, 1909
Nov.
12, 1903
Jan.
25, 1904
Sept.
21, 1908
Oct.
11, 1909
Apr.
20, 1908
May
18, 1903
Feb.
1, 1904
Feb.
1, 1904
Nov.
9, 1908
Aug. 1, 1904
Oct.
Nov.
Feb.
Jan.
May
Sept.
July
June
Jan.
Nov.
Nov.
22, 1901
12, 1901
3, 1903
fi, 1908
21, 1901
6,1909
2,1908
15, 1908
4, 1909
19,1901
4,1902
UNITED STATES STEEL OOBPOEATION.
4049
Skelp for tubes, the tube company will be paying $2 or $3 or $4 more
per ton for skelp next week
Standard Oil Co.:
Connection with steel corporation gets the National Transit Co.
special consideration
Alliance with Carnegie Co
Contract mentioned
Steel sales, Carnegie Co. need hardly sell a pound of raw steel to out-
siders
Steel is dominant factor in prosperity of country
Tariff legislation ■
Nov. 4, 1902
Tennessee Coal, Iron & Railroad Co.:
Louisville & Nashville Bailroad controls
Probably is interest in
Tin plate, reduction of 15 cents per box, and Youngstown Iron & Tube
Co. shut down
Tonnage account under old system was largely fictitious
Unfinished material, president's majority decide not to sell to com-
peting companies
Union Railroad Co.:
Terminal charges
Investigation would not reveal irregularity in Union Railroad's
omission to charge terminal charges
Union Steel Co.:
Is to be pressed hard ; price of $28 high enough
Operating contract with Carnegie Co
Supplemental agreement
United States Supreme Court decision
Wall Street, if shadow of, could be removed there would be a hand-
some buying movement
Warehouses:
To eliminate jobbers
On Pacific poast
Western freight:
Bethlehem Co. withdrawn from the West because they can not
meet Illinois prices on account of freight
Rates lower to Carnegie Co. than to competitors . ._
Winthrop Iron Mining Co. sold to Minnesota Iron Mining Co
Apr.
Feb.
Apr.
July
May
Dec.
Jan.
Apr.
July
July
July
Oct.
30, 1901
8, 1909
3, 1911
16, 1906
15. 1908
7, 1908
4, 1908
19. 1909
6, 1902
6, 1902
25, 1904
11, 1909
July 1, 1902
■June
Sept.
Sept.
17, 1902
2, 1902
16, 1902
Sept. 16,1902
Nov.
May
Feb.
Feb.
4, 1902
2, 1904
8. 1909
2. 1910
July 27,1903
Jan.
Dec.
Mar.
Feb.
Oct.
27, 1903
29, 1910
15. 1909
21. 1910
25, 1909
CARNEGIE STEEL CO.
(A New Jersey corporation.)
Minutes of the Board of Directors as Extracted, from April
1, 1901, to July 31, 1911.
Note. — There were three Carnegie companies, as follows:
1. Carnegie Steel Co. (a corporation of Pennsylvania), which was chartered May 22,
1899, and succeeded the old limited partnership, and began business April 1, WOO,
which was an operating company until leased to the Carnegie Steel Co. (a corporation
of New Jersey).
2. The Carnegie Co. (a corporation of New Jersey), which was chartered March 24,
1900, and began business April 1, 1900. This company held the stock of the Carnegie
Steel Co., the Pennsylvania corporation, together with the stocks of various other
companies, and the stock of this company was purchased by the United States Steel
Corporation.
3. Carnegie Steel Co. (a corporation of New Jersey), was organized about March 26,
1903, by the merger of the Carnegie Co., National Steel Co., and American Steel
Hoop Co.
Carnegie Steel Co. (the Pennsylvania corporation) was leased under an operating
contract to the Carnegie Steel Co. (the New Jersey corporation formed by the merger
of the Carnegie Co., National Steel Co., and American Steel Hoop Co.) on or about
December 26, 1905.
April 1, 1901.
Present: A. R. Peacock, first vice president ; William H. Singer,
Thomas Morrison, Wm. B. Dickson, Henry B. Bope, D. M. Clemsoif,
also David G. Kerr and James J. Campbell.
Messrs. Schwab, Blackburn, Phipps, and Gayley, in- New York,
Mr. Lauder in the South.
Mr. Peacock. I submitted the Fuller contract to the president.
He is entirely satisfied with it, but thought best simply to assure the
Fuller Co. tliat the contract would go through as soon as the present
combination is completed. He did not think it was fair to Mr. Morgan
at the present time to put through such an important contract while
negotiations are pending. He has since told Mr. Black, vice president
of the Fuller Co., that the deal would go through in a short time, as
outlined last Tuesday.
pig moN.
^Ir. Dickson. I had a talk with ]\Ir. Butler of the Valley Pig Iron
Association, last week, and after consulting with some of the directors
who were here, made him an offer on 15,000 tons of basic iron of $14,
Valley Furnaces, which he declined after putting the matter before his
Eeople. While I was talking to him he made the statement that they
ad from 20,000 to 30,000 tons of Bessemer iron available to July 1,
which they had not pi:eviously counted upon. He asked us to make
an offer, which we did, of $15 Valley Furnaces. That was declined,
and a counter offer of -SI 6 made which I at once declined.
Mr. Snyder tells me that he sold iron to Cambria Steel Co., at $15.50
Valley, and I thinlc on the same day he sold to the National Tube Co.,
at S16 Valley. He professes to be in favor of our position, to keep the
4050
UNITED STATES STEEL, COEPORATION. 4051
price at $15.50 Valley, and said that if I would make him an ojffer for
5,000 tons at $15 Valley, he would accept, which he has done.
I have the following offers on pig iron to lay before the board :
Corrigan, McKinney & Co. offer us either 16,000 tons for the third
quarter or 4,200 tons for the second half, of Bessemer iron made at
Scottdale Furnace, at $16.50 Scottdale, which is equivalent to $15.50'
VaUey.
I also have a proposition from Rogers, Brown & Warner of 20,000
tons of Virginia basic iron for delivery July to December, inclusive, at
$15.50 our works and one from Matthew Addy & Co., on 18,000 tons
of Virginia basic iron the same delivery, at $15.25 our works.
I estimate roughly we will have to buy for the third quarter 160,000
tons of iron, basic and Bessemer combined.
Mr. Peacock. My judgment is that we are to-day within, I hope,
a week of the new organization and I do not think we ought to buy
any pig until we find out where the other members of the United
States Steel Corporation stand in regard to their raw material and
on their finished orders. If we were to buy to-day the iron sub-
mitted, it will put the price up $1 or $2 per ton.
The other members of the board concurring in this view of the
situation, the chairman directed that it be recorded as the sense of
the board that no more pig iron be purchased until the president,
or the new organization, be heard from.
Apkil 16, 1901.
Present: Peacock, Singer, Morrison, Dickson, Bope, Clemson,
Blackburn, Phipps, Gayley and Lauder.
Mr. Lauder resigned and Mr. W. E. Corey was elected in his place.
Charles M. Schwab resigned as president of the board of directors
and as president of the company. Mr. Corey was elected president.
Mr. Peacock resigned as first vice president, general sales agent
and director, and E. H. Gary was elected in his place.
Mr. Lawrence C. Phipps resigned as director.
Mr. James Gayley resigned as director and Judge Reed was elected
in his place.
Mr. W. B. Dickson resigned and Mr. W. C. McCausland was elected
in his place.
Mr. Joseph E. Schwab was elected director.
Mr. H. B. Bope was elected first vice president.
Mr. W. W. Blackburn was elected second vice president.
Mr. W. C. McCausland was elected treasurer.
Mr. H. B. Bope was elected general sales agent.
The directors of the company are C. M. Schwab, E. H. Gary,
W. H. Singer, James H. Reed, W. E. Corey, H. B. Bope, W. W.
Blackburn, Thomas Morrison, D. M. Clemson, W. C. McCausland,
and J. E. Schwab.
UNITED STATES GOVERNMENT BIDS.
Any two directors are authorized to make:
Proposals to the United States Government for the furnishing steel plates and
shapes for any and all Government construction and repairing for which bids may be
asked, which proposals shall be binding upon this company; and further, in the
event of the acceptance of such proposals, any and every two directors are hereby
directed, authorized, and empowered to sign and execute for this company such formal
4052 UNITED STATES STEEL COEPOBATION.
contracts and agreements as may be found necessary for the proper entering of such
accepted proposals.
April 23, 1901.
Present: Corey, Bope, Blackburn, Singer, Morrison, Clemson,
McCauslancI, also Mr. Kern.
Mr. Bope. The rail report, as we have been rendering it, is not
now of so much value on account of the transfer of the National rails.
"car trust bonds" RELATING TO PITTSBURGH, BESSEMER & LAKE
ERIE R. R. CO. BONDS.
Proposition of Mr. Carnegie to purchase 2,050,000 Car Trust
bonds of the Pittsburgh, Bessemer & Lake Erie R. R. Co., at 105
and interest. President directed that the single stockholders be
asked to say what portion of the issue, if any, they would care to
take before accepting Mr. Carnegie's offer.
UNITED STATES STEEL CORPORATION EXECUTIVE COMMITTEE.
Mr. Corey. The board should understand that all expenditures
over $10,000 must be approved by the executive committee in
New York.
I will ask Mr. Morrison to write me a letter on the subject (i. e., of
new engine for Edgar Thomson Works), which I will indorse and
ask for immediate action.
Appointment of Alva C. Dinkey, superintendent of Homestead
Steel Works.
April 30, 1901.
Present: Corey, Bope, Blackburn, Singer, Morrison, Clemson,
McCausland, Reed, and J. E. Schwab.
Park Steel Co. contract renewed for last half of year, in which
Carnegie Co. asked $1 per ton additional for specialties and higher
carbons. Mr. Bope stated that this was done after the meeting on
Saturday of the constituent companies, wherein it was developed
much to our surprise that there is a surplus of 269,000 tons to market
over the rest of the year.
Contract mth National Transit Co.
SKELP.
Mr. Bope. I have had a conference this morning with Mr. Arnold
of the National Transit Co., relative to his requirements for the
remainder of the year. He wishes to place an order for 25,000 tons
of steel with an option on another 25,000 tons or he will place the
first 25,000 tons outright, leaving the question of price on subsequent
orders to be taken up at the time he is ready to place them. I nave
quoted him 1.60 cents per pound, which Mr. Arnold reports is too
high, but that is as regards other prices he has received and as regards
the cost of pipe from our steel m comparison with what would be
quoted by the National Tube Co. He thinks the price should be
1.35 cents for the groove skelp and 1.40 cents for the wider sizes.
Personally I think these prices are too low, but knowing the connec-
tion of the Standard Oil Co. with the new organization, and that it
UNITED STATES STEEL C0EP0RATI01>r. 4053
is the wish of President Schwab that these people be properly treated
I think perhaps some concession should be made to Mr. Arnold. I
should mce to have the views of the board on the subject.
A price of 1.5 cents was given to Mr. Arnold.
May 7, 1901.
Present: Corey (president )j Bope, Blackburn, Singer, Morrison,
Clemson, McCausland, also Kerr and Dickson.
PIG IRON.
Mr. Dickson. I should like to get the views of the board on some
pig-iron matters which have come up not only for the Carnegie Steel
Co. but in a general way for the whole organization. We are offered
various lots of Bessemer iron at a lower price than the Valley Asso-
ciation are selhng off anywhere from 75 cents to $1 per ton. I have
always said to association that we are not interested in bearing the
price of iron, but on the other hand we can not afford to take the
position of upholding a fictitious market. If we bought iron at $16,
Valley furnaces, we would pay the established price, to be used on
our scale contract, but the other lots will be sold to somebody else
at a lower price and our scale customers wiU, of course, learn of these
sales and we will have to consider them anyhow.
Mr. Clemson. I would offer the Valley people the price at which we
can buy and if they do not accept, would purchase the other lots
offered.
The other members of the board present agreed with this view, and
the president directed that it be recorded as the sense of the board,
Mr. Dickson to be governed accordingly.
May 14, 1901.
Present: Bope, Blackburn, Morrison, Clemson, McCaulsand, Keed,
J. E. Schwab.
BAILS.
Mr. Bope. We are practically filled up on all lines for the balance
of the year; but we are trying to leave some space for material at
present prices, by giving some of our business we now have to some
of the other concerns of the United States Steel Corporation, and at
the same time take care of certain changes for National, Lorain, and
American Steel Hoop Cos. The constituent companies of the United
States Steel Corporation are all working together very harmoniously,
at least so far as the sales end is concerned.
May 21, 1901.
Present: Corey (president), Bope, Blackburn, Singer, Morrison,
Clemson, McCausland, Reed, and J. E. Schwab.
EXPORT SALES — ^HAELAND & WOLFF CONTRACT FOR 25,000 TONS.
Last August when we were seeking export business, a contract was
entered into with Harland & Wolff, Belfast, Ireland, for 25,000 tons
of plates, at a price which netted us $1.24 at the works. About 9,000
tons of plates uad been shipped against this contract and customers
4054 UNITED STATES STEEL COEPOKATION.
are now asking us to cancel the remainder, owing to various com-
plications which have arisen. They offer to pay us £1 per ton for
this privilege. Believing that we can replace the tonnage at a better
figure, after consultation with the president, we decided to accept the
cancellation. It was thought best to report the matter to the ooard
for their approval of our action.
Action approved.
SALES TO CONSTITUENT COMPANIES STATEMENT BY ME. COKEY.
Mr. Corey. In talking the matter (of a credit agent) over with
President Schwab, he said to me that the question of credits for the
Carnegie Steel Co. is not so important as it has been in the past for
the reason that a great deal of our business will consist of selling to
the constituent companies of the United States Steel Corporation.
SALES to brokers.
Folic}'' not to sell to brokers approved.
May 27, 1901.
Present: Corey (president), Reed, Morrison, J. E. Schwab, McCaus-
land, Blackburn, also Mr. Kerr.
SHEARED PLATES, BLOOMS, BILLETS, AND SLABS, SLIDING SCALE
agreement; park steel CO., union STEEL CO.
Mr. Corey (in the absence of Mr. Bope) . I will state that for the past
six weeks we have been quite short of orders for sheared plates, not
through any lack of contracts, but owing to customers not giving us
specifications, but I am pleased now to state that during the last
week specifications on account of these contracts for sheared plates,
have been coming in quite freely, and the present outlook for running
at sheared plates mUls full is very bright.
As to blooms, billets, and slabs would state that the Park Steel Co.
has signed our sliding-scalo contract, and we have also agreed with
Mr. Oliver for his Bessemer billets. In reaching a settlement with
Mr. Oliver we had to call upon our former president, who got us
together on a satisfactory basis. Mr. Oliver wanted to make a
trading contract based on the exchange of coke for billets, but we
finally settled on a scale contract, on the same basis as that with the
Union Steel Co. We tried to have Mr. Oliver agree to the cancella-
tion of our open-hearth contract with him, but he was not disposed to
consent to same.
Aragon Mine bought by National Tube Co., according to state-
ment made by Mr. Kerr.
June 4, 1901.
In regard to consolidation of National Steel Co. and Steel Hoop
Co., with Carnegie Steel Co., Mr. Corey objected, when the matter was
first talked over, to having the consolidation take place at once, be-
cause he did not want any branch of the Carnegie Steel Co. to sign
the amalgamated scale this year.
united states steel corpoeation. 4055
June 11, 1901.
COKE.
Mr. CoEEY. At the last meeting of the Carnegie Co., when the
matter of coke was brought up, it was referred to Mr. Lynch and
myself to arrange the terms. I did not know the opinion of the board
as expressed last week when I arranged this matter with Mr. Lynch
on a somewhat different basis from that the board recommended, but
which I think is a satisfactory one. The coke company is to furnish
the coke to us at $1.50 per net ton at the ovens. We are to pay the
freight on the coke and the cost of unloading it from the cars, and
the coke company will pay us 5 per cent on the total amount re-
ceived from the coke; this interest to be paid semiannually. This
is virtually the coke company carrying the investment, while the
steel company owns the coke, and it is a more favorable arrange-
ment than that recommended by the board.
June 18, 1901.
policy toward customers in construction business inde-
pendent of american bridge co.
Mr. BoPE. There is a question of policy which I presented to
Messrs. Corey and Schwab, and in which this board might be in-
terested. We have a great many customers like Jackson & Cornell
in New York, handling construction work like the Frick Building,
who are becoming restless because of the competition of the American
Bridge Co., and they are threatening to break away from us, placing
their business with Phoenix, Jones & Laughlin, and Cambria. I
recommend that the American Bridge Co. keep out of that line of
work and let us handle these people as we deem best. We can
often offer to them some tonnage that the American Bridge Co.
would not and thus secure large orders for plain material that would
go elsewhere. I would like to have the board say what they think
about this proposition.
Mr. Morrison. Your idea would be to take the business and give
the footing to American Bridge Co., we getting the plain material ?
Mr. BoPE. Yes; to an extent. Customers claim the American
Bridge Co. is getting special consideration. The whole idea is to
keep the business in our hands. This would not interfere with the
American Bridge Co.'s regular lines.
Mr. Blackburn. Do Cornells only erect ?
Mr. BoPE. No; they manufacture complete. We could make deals
with these people from time to time by which we would get more
tonnage — not less. We would get plain material which we would
not otherwise get. They will not buy if they feel that we are dis-
criminating against them. We would consolidate drafting forces
with American Bridge Co. and effect economies, dividing work so that
it would be most profitable.
Mr. Singer. I think the policy proposed is fair and wou.ld be de-
cidedly to the advantage of the United States Steel Corporation.
4056 united states steel coepobation.
June 25, 1901.
bessemer and lake eeie bailboad.
Judge Reed stated that during the first three weeks in June, the
road brought down 338,000 tons of ore as against 209,000 tons for
last year, and that the total tonnage during this period was 484,000
tons, with an average train load of 1,044 tons. This is at the rate of
8,000,000 tons per year, which is pretty good for a single-track road.
We are taking some coal back, but not as much as we expect to carry
a little later on.
PIG IRON.
It was the unanimous conclusion of the board that the price should
be $13.75 per gross ton.
July 1, 1901.
national steel and steel hoop consolidation.
Judge Reed said in considering the making of a consolidation in-
stead of leasing :
PC'Then the question came up as to the propriety ot making a consolidation instead of
a lease, but that involved the same difficulty, because any stockholder who was not
satisfied with the consolidation could demand an appraisement, and an appraisement
&t any time of all these properties to decide what the stock is worth, would be embar-
rassing, to say the least.
July 30, 1901.
american steel hoop co. contract with illinois steel co.
Mr. Corey. I find that the Steel Hoop Co. had an agreement with
the Illinois Steel Co., to pay them $150,000 per year to stay out of the
cotton tie business.
September 24, 1901.
Pig iron price fixed at $14.50.
October 22, 1901.
Mr. Corey stated that the costs of the Carnegie Co. are considerably
less than any of the other companies.
November 12, 1901.
Mr. Corey. I don't see that Republic can afford to be antagonistic
to us, and we may as well let them understand that. In this one par-
ticular case, they have us in a hole, but if they wish to push us we will
push them aU along the line. We want an agreement put in definite
shape so that there can be no discussion in the future.
November 19, 1901.
The American Steel Hoop Co. made the most money on skelp.
December 23, 1901.
Pig iron fixed at $15 a ton.
UNITED STATES STEEL COEPOEATIOlir. 4057
January 7, 1902.
shipments from abroad.
Mr. Dickson. I might mention an item of interest that came to my
notice. I heard that 3,000 tons of 4-inch billets were sold recently
for shipment from abroad to Youngstown at $27.50, delivered at
Youngstown.
Mr. Corey. That is getting very near the real thing. Where are
they coming from?
Mr. Dickson. I think from Germany. The tide has turned, and
now instead of us shipping to them they are shipping to us. The duty
is $6.90 per ton.
Pig iron fixed at $16.50 a ton.
Statement that Mr. Butler wanted an advance of 25 cents per ton.
(Joseph Butler of Youngstown, seller of pig iron.)
Mr. Kerr stated that there is also another factor that will tend to
keep the price up and probably advance it, and that is that the price
the Missabe ores is to oe increased from 25 to 50 cents. Old range
ores will remain at present basis.
Axle works at Keystone: Auctioii sale advertised.
January 21, 1902.
outstanding stock of the national steel co.
Mr. McCausland. While in New York last week I saw one of Mr.
Morgan's assistants about the outstanding stock of the National Steel
Co. There are 300 shares there held by Post, Flagg & Co., on call
which is friendly to us. We can get that at any time. The only
other stock outstanding is the 25 shares held by Miss Edy. I have
been having the matter up in correspondence, but have not had much
success, as she seems to think that it is the most valuable stock in the
world to hold. I submitted two propositions — one to exchange
for the United States Steel preferred, the other to buy her bonds
having her pay us the difference, but she prefers to hold on for the
time being, and I think it would be well not to push the matter too
much.
February 3, 1902.
national steel co.
Mr. McCausland. For the information of the board I will report
that the National Steel Co. renewed $2,107,000 of its obligations on
January 29, of notes maturing in Boston and New York on a 4 per
cent basis. I took the matter up with J. P. Morgan & Co. as to the
advisability of placing some of that loan in Pittsburgh. They were at
first not disposed to allow us to do so, but finally assented, if I could
get as low rates here as in the East, on which condition they agreed
to allow us to place $700,000 here.
4058 united states steel cokpoeation.
Febeuary 24, 1902.
cancellation of contracts with oliver iron mining co.
Mr. Blackburn submitted the following communications from
James Gayley, first vice president United States Steel Corporation,
relative to the cancellation of contracts for the purchase from the
Lake Superior Consolidated Iron Mines of the ores of the Oliver Iron
Mining Co.:
Mr. Fraser will send you for execution by the Carnegie Steel Co. agreements cancel-
ing the contracts for the purchase by the Carnegie Steel Co. from the Lake Superior
Consolidated Iron Mines of the ores of the Oliver Iron Mining Co.
As I have previously explained to your board in the matter of the Stevens Mine, the
execution of the contract now to be canceled was forced upon the Carnegie Co. by the
Lake Superior Consolidated Iron Mines in order to prevent their securing any reduc-
tion in rail freights from Missabe Range. The formation of the United States Steel
Corporation permits of the canceling of these contracts, and abolishes the entirely ficti-
tious sale of the Oliver ores to the Consolidated Mines and their resale to the Carnegie
Co.
I therefore request that you will have the contracts properly executed as requested
by Mr. Fraser.
It was moved and seconded that the president be authorized to
execute the agreements cancehng the old contracts, copies of said
agreements to be attached to the minutes.
AGREEMENT WITH M. A. HANNA CO.
Mr. Corey ( to Mr. Kerr) . Did you find any way to cancel the agree-
ment with M. A. Hanna & Co. to pay them one-half of a cent per ton
on all ores used by the National Steel Co. ?
Mr. Kerb. I have had this matter up with Mr. Baker, who says
the contract is in such shape that we can not cancel. We told them
that they gave us no service last year, but they reply they stood ready
to give us the service. The general contract runs until 1903, and the
contract on the Chapin ores runs until 1905. We paid them about
$30,000 this year, but they got about $100,000 from the National
altogether. They get 10 cents on every ton of Chapin and 7J cents
for all shipped from the Winthrop Mine outside of the National Steel
Co. The service does not cost them anything. Mr. Gayley spoke to
me about the matter last week, but I said I did not think we could do
anything with them, but would keep pounding away.
Mr. Corey. Let us submit the papers to Judge Reed to see if there
is anything we can do in the matter. It should be carefully looked
over by our legal representatives as well as by Mr. Baker. In case of
the Judge's report confirms Mr. Baker's opinion, it may be well to take
up the matter with Hanna & Co. to see on what basis the contract
could be canceled.
June 17, 1902.
claim for use of cars by union railroad.
Mr. Blackburn. Mr. Morrison and I have a report to submit on
the claim of the Bessemer & Lake Erie Railroad Co. against the Union
Railroad for the use of cars, as follows:
Beferring to the claim of the Bessemer & Lake Erie Bailroad Co., conveyed in letter
addressed to J. H. Reed, president, dated May 19, 1902, for use of cars during the
winter months, we do not recommend that any allowance be made.
UNITED STATES STEEL, OOKPOBATION. 4059
We consider that the position the Carnegie Steel Co. has taken in the past regarding
use of cars between works for which railroad companies other than our own have made
no charge should be adhered to.
We believe, however, that as to the adjustment between the Union Railroad Co. and
the Bessemer & Lake Erie Railroad Co. for cars retained on the tracks of the Union
Railroad Co. an equitable amount should be charged to the rental account of the Union
Railroad Co., and credited either to the interest account or renewal or redemption
account on the books of the Bessemer & Lake Erie Railroad Co. The operating ac-
counts of any other roads should be affected by the transactions.
If for reasons relating to State taxation the president of the Union Railroad Co. (who
is also the jjresident of the Bessemer & Lake Erie Railroad Co.) should desire to make
charges against rental account on the books of Union Railroad Co., and make credit of
like amount to interest or redemption funds on the Bessemer & Lake Erie Railroad Co.
books, would recommend that he be allowed to make such adjustment as he believes
proper. The amount of such charge and credit that we would consider proper would
be a sum equal to 5 per cent per annum on the investment in 1,000 cars, and a like
amount for renewal and redemption purposes, for we believe from information col-
lected that the Union Railroad Co. should purchase 1,000 cars for use at and between
the works at Edgar Thomson, Homestead, and Duquesne, and the coal docks.
Report received and recommendations approved.
July 1, 1902.
scale contkacts.
Mr. Corey. The only item of interest I have to-day is to state
that at the last meeting of the presidents it was decided by a major-
ity, and approved by the president of the Siteel Corporation, that
Carnegie and National Steel Co. are not to sell unfinished material
on scale contracts to any companies competing with constituent
companies of the corporation; and such scale contracts with such
competing parties are to be discontinued at as early a date as pos-
sible. Any excess tonnage we may have over and above amounts
required to keep the constituent companies in operation we will
sell as we find it necessary, but at such a figure as will be above
that at which we sell the constituent companies. That will mean
more shutdowns in the future than in the past, but with some
150 new tin-plate nulls and 122 sheet mills there will be severe
competition for our constituent companies.
I was much surprised to find we have such a small number of
concerns on our books receiving unfinished steel from us, which
compete with the constituent companies. The only one, in fact,
that takes any great quantity is the Union Steel Co.
July 7, 1902.
cement manufacture.
Letter from Edward M. Hagar, manager of the cement depart-
ment of the lUinois Steel Co., showing great increase ia cement
production and consumption. Slag cement is given two names
and brands— Portland cement and Puzzolan cement. The mill
can produce Universal cement at 65 cents and the Steel brand at
50 cents. Portland cement was never sold for less than $1.30 f. o. b.
Pittsburgh. In hard times the cost being $1.15, there is a profit
of 50 cents. At the present time there is a profit of $1 a barrel.
Mr. Corey- stated that the figures would show a profit of $350,000 a
year on an investment of $600,000.
On the basis of $1.80 Pittsburgh, Mr. Hagar estimates on a 2,000-
barrel plant, $690,000 profit per year.
31572— No. 53, pt. 2—12 21
4060 united states steel coepokation.
September 2, 1902.
Note. — The sheet on which this matter is written appears to be
a fresh sheet, with new typewriting following an old sheet.
UNION RAILROAD TERMINAL CHARGES.
Mr. McCague. In order not to jeopardize our Union Railroad
arrangements with other raihaaad companies for terminal charges, I
beheve it would be better to make a trackage agreement between
the Carnegie Steel Co. and the Union Railroad Co. whereby the
Union womd charge the steel company so much per annum for the use
of tracks, instead of so much per car on movements between Home-
stead Steel Works and Howard Axle Works and on other move-
ments between Homestead Steel Works and points on the line of
the Union Railroad north of Homestead Steel Works hmit. By
charging a trackage rental we would reheve the Homestead Steel
Worka of a great amount of clerical work, keeping record of cars
moved and reporting to Union RaUroad Co. and would insure a
charge for all such movements. We have assured the other rail-
road companies that allow us terminal rates that the Union charges
Carnegie Steel Co. for all movements, but as a matter of fact there
are some that are not reported and therefore not charged for; but
the trackage rental would cover all. We want to protect the other
railroads against any inquiries of the Interstate Commerce Commis-
sion, because it is unlawful to pay terminals to any but a regular
road. I would propose fixing the rental charge so that it would
not be greater than the average amount now paid by the Carnegie
Steel Co.
Mr. Campbell. I am not so sure that such an arrangement would
save much clerical work for the Homestead Steel Works, excepting
that which appertains to making reports to the Union, for the rea-
son that records would still have to be kept of the materials moved
in more or less detail, in order to enable us to properly divide and
distribute the trackage rental charge to our various departments
interested. Further, the Carnegie Steel Co. now has an agreement
with the Union Railroad by which the steel company charges the
Union for the right of way in and through the various works and
yards, and an agreement such as proposed by Mr. McCague might
conflict with this one.
I would suggest that action be deferred until we can consider the
agreements now existing between the steel company and the Union,
and what effect, if any, the proposed one womd have upon them,
and what, if any, saving there would be in clerical labor by changing
the basis of charging for the service in question.
After some discussion of the matter it was agreed that Mr. McCague
should write Mr. Campbell on the subject, and the latter should then
inquire into the matter and report to the board for its action at as
early a meeting hereafter as practicable.
Note. — Mr. McCague was traffic manager.
united states steel corporation. 4061
September 16, 1902.
cement mantifacture.
Cost of cement plant would be $600,000, and annual profits would
be $390,000, and at the present price would be over $900,000, and a
fair average estimated profit for a term of years would be $500,000
per annum.
Report filed.
UNION EAILROAD OPERATIONS.
The following report by Mr. Campbell on proposed trackage ar-
rangements between Carnegie Steel Co. and the Union RaUroad Co.
was presented:
Referring to the proposition made by Mr. McCague, traffic manager, at the board
meeting, September 2, to change the basis for the Union Railroad Co. s charges against
the Carnegie Steel Co. for the movement of cars between Homestead Steel Works and
Howard Axle Works from 50 cents per car to a,n annual trackage rental arrangement,
I have to advise that pursuant to the understanding at the meeting mentioned Mr.
McCague wrote me on September 2 as follows:
"As per conversation to-day at the board meeting, beg to state that instead of
charging the Carnegie Steel Co. a rate per car on movements between Homestead Steel
Works and Howard Axle Works limit it will be preferable to make an agreement
between the two companies for a lease of the tracks or a trackage agreement by which
Carnegie Steel Co. will pay our company a fixed amount a year on such business, and
thus avoid the expense of clerical work in connection with the accounts. As ex-
plained in our conversation, we desire to maintain the principle of making a charge
for all services performed, whether for the Carnegie Steel Co. or outside parties, so
as not to jeopardize our arrangements with the other railroads for a terminal charge."
Since the receipt of this letter I have had a talk with Mr. McCague about the matter
and also with Mr. Irwin, chief clerk of Homestead Steel Works, and I now understand
that Mr. McCague's chief concern is to insure the charge for all cars moved back and
forward on that piece of the Union Railroad Co.'s main running track between Home-
stead Steel Works and Hays Station and to accomplish this without entailing too
much extra clerical labor on the part of the Homestead Steel Works in keepmg a
record of and reporting all such movements to the Union Railroad Co. At the present
time all movements are reported to the Union Railroad Co. by Homestead Steel
Works and are charged for at the rate of 50 cents per car, excepting such movements
as are jjractically part of the Homestead Steel Works' yard switching. To be more
explicit, Homestead Steel Works has established an additional stockyard below
Howard Axle Works, where they are storing scrap and ore and pig iron. They are
taking this material at times from Homestead Steel Works yard proper and at other
times are bringing it back, but all such movements have to pass over the small stretch
of Union Railroad Co.'s main line between upper Homestead Steel Works and the
Howard Axle Works yard at Hays. I agree that it would entail considerable extra
clerical work for Homestead Steel Works to do so, and if it is essential to protect the
Union Railroad Co.'s relations with the other railroads, and at the same time safeguard
the Union's terminal allowances by charging for these movements that are now covered
I would prefer to have a trackage rental agreement made between the Carnegie Steel
Co. and the Union Railroad Co. on the basis proposed by Mr. McCague. Personally,
I tiiink we can forego adding to the cost of Homestead Steel Works' yard switching
by charging for movements particularly referred to for the following reasons:
First. Because it is understood and is the present practice for the Union Railroad
Co. to do all tie yard switching for Homestead Works, Duquesne Works, Edgar Thom-
son Works, and Carrie Furnaces free of cost to the steel company.
Second. Because the Union Railroad Co. receives a revenue in the first place on
most of the materials that would be covered by such movements as are in question
when they are first delivered to our works from its terminal rate with the other railroads
that bring in the materials.
Third. Because I do not believe any investigation that might be made would
develop the fact that the Union Railroad was doing anything irregular in omitting,to
charge for these particular movements.
The agreement that I referred to in my remarks at the meeting on September 2 and
which I thought might conflict with die one proposed by Mr. McCague, is dated
4062 UXITED STATES STEEL COEPOEATION.
December 31, 1899, leasing right of way privileges in and to the yard? at Bessemer to
the Duquesne and Homestead , but that does not cover the piece of track on which
the movements referred to above are made. This track is the main track of the Union
Railroad, located on the Union Raih'oad property; hence I understand that there are
no conflicting agreements that would present the making of the trackage agreement
suggested by Mr. McCague, if the board thinks it proper to do so.
November 4, 1902.
union steel co.
Mr. Corey. They can not say that we forced the price up, as we did
not buy anj- iron; but I do not think we should force them to pay
more than the market price for billets, except perhaps in the case of
Union Steel Co. I think it would be a good plan to hold them to the
contract if it can be done . I am strongly in favor of pushing the Union
Steel Co. as hard as we can. There is nothing we can do to smooth
matters over, as they are determined to do all they can against us.
For this I think .S2S for billets would be high enough.
November 17, 1902.
national tube CO. preferential on skelp.
We have made an arrangement with the tube company ^s'hereby
we are putting a preferential in their favor on skelp, and they are to
discontinue the manufacture of iron pipe, except at one of their plants
where they puddle their own iron. If they carry out their plans, they
will give us 125,000 tons of skelp for the hoop mills. This would put
the hoop company in good shape on skelp, and we could then give
attention to hoops, bands, bars, and cotton ties and run pretty well
next year.
December 2, 1902.
BAR market.
Mr. BoPE. The statement I made at the last meeting as to the con-
dition of the bar market has been confirmed during the week by several
persons. Mr. Baird, of Eepublic Iron & Steel Co., told me their ex-
perience has been just the same as our omh; many of their mills, espe-
cially the smaller ones, are shut down. Wallace Rowe, of the Pitts-
burgh Steel Co., made practical^ the same statements regarding their
business.
January 27, 1903.
committee on distribution of products and warehouses, etc,
Mr. Bope stated that this subject had been discussed by the general
managers of sales, and a committee appointed consisting of Jlr. Frank
Baackes of the steel and wire company, Mr. John A. Topping of the
sheet steel cx)mpany, and Mr. Worcester of the tube company, to look
thoroughly into the matter of estabUshing large warehouses in various
trade centers. Their report is expected at the meeting of the associa-
tion next month.
Earnings for 190^.
Carnegie Steel Co ; |29 277, 680. 12
National Tube Co 7^ 717, 004. 88
American Steel Hoop Co '.,\\ 3^ 265, 286. 35
united states steel corpoeatiok. 4063
February 3, 1903.
republic iron & steel co.
ilr. BoPE. Eeports received this moming from Mr. Coombs, super-
intendent of the hoop company's mills in the Youngstown district
indicate that the Kepublic's mills in that vicinity are running fuU, but
they are concentrating their steel tonnage at those mills and that
most of their mills in other sections are shut down. This was con-
firmed to pie this morning by Mr. Baird, of the Kepublic Co., who says
that the mills outside the Youngstown district are either shut down
or roUing iron. They are selling iron on the basis of 1.75 St. Louis,
which Mr. Baird says means a loss to them, but which they are doing in
order to force the smaller mills from the West to shut down or consoli-
date.
It was the sentiment of the board that we should continue without
change the present selling basis.
February 16, 1903.
cramp ship and engine building co.'s account.
Mr. McCausland. We wrote Mr. Trimble, secretary of the United
States Steel Corporation last week, asking him to confirm a rumor
that Seligman, the First National Bank and J. P. Morgan & Co. were
going to arrange a $4,000,000 bond issue for the W^iUiam Cramp &
Sons Ship & Engine Building Co. We now have a telegram from Mr.
Trimble advising that it will be impossible to inform us on this point
until after the meeting of the finance committee to-morrow ; so we
will have to hold that matter over until our next meeting.
earnings of the CARNEGIE CO.
Mr. Corey. I have a report of the earnings of the Carnegie Co. for
1902. You are already aware of the earnings of the Carnegie Steel Co.,
$29,277,000. H. C. Frick Coke Co. earned $5,172,000; the Bessemer
& Lake Erie Railroad Co. $465,000; the Oliver Iron Mining Co.,
$4,470,000 (of which our proportion is 3 J per cent). These
amounts, with the earnings of the minor companies, makes a total of
$43, 803,000.
Armor plate for Navy discussed by Mr. Corey.
cramp's ACCOUNT.
Mr. McCausland. If it is necessary to proceed with the work on
this new cruiser at once, we will have to decide for ourselves what
terms we will offer them.
March 10, 1903.
cramp's ACCOUNT.
Mr. ilcCaulsand reported that Cramp's account had been paid.
"As to their future business, Mr. Blackburn read in a Philadelphia
paper yesterday that their proposed bond issue is to be postponed on
account of the money stringency * * *."
4064 united states steel corpoeation.
March 16, 1903.
american car & foundry co.
Mr: BoPE. "\Ye have been endeavoring for some time to make an
arrangement with the American Car & foundry Co., whereby they
will agree to close down their bar mills and order from us all their bar
requirements, amounting to about 300,000 tons per year.
JACKSON ARCHITECTURAL IRON WORKS.
Mr. McCaulsand stated that this concern owed the company about
$47,000 in paper an'd $3,000 on open account, and that the Chemical
National Bank of New York has advanced them $55,000; the New
York Life Insurance & Trust Co., $25,000; the Com Exchange Bank,
$20,000; the Oriental Bank, $10,000; but, that Mr. Wilson of the
Architectural Iron Works was not well posted as to their financial
affairs.
March 27, 1903.
Resolution that the president and secretary are authorized to exe-
cute an agreement for the operation by this company of the Carnegie
Steel Co. (of Pennsylvania), and the various works of the said Carne-
gie Steel Co., upon a rental to be agreed upon between the two com-
panies, possession to be given April 1, 1903.
March 30, 1903.
merger of companies.
On the 26th of this month the Carnegie Co., National Steel Co., and
American Steel Hoop Co., all corporations of New Jersey, were merged
under the corporate name of National Steel Co., and on the same
date, the name was changed to the Carnegie Steel Co., of New Jersey.
It is proposed to have this company make a working arrangement
with the Carnegie Steel Co. of New Jersey for the operation of all our
works, for which purpose the following resolution has been prepared.
Resolution for wording agreement approved.
(Note. — -Mr. Campbell, the auditor of the Carnegie Steel Co., states
that the minutes wnich follow this date, although bound consecu-
tively under the same cover, are really the minutes of the Carnegie
Steel Co. of New Jersey, which is the company which was formed by
the merger of the National Steel Co., the American Steel Hoop Co.,
and the Carnegie Co. Mr. Campbell stated that from this date the
minutes of the Carnegie Steel Co. of Pennsylvania were kept under a
separate cover, althoiigh up to this date the minutes of the said
Carnegie Steel Co. of Pennsylvania were kept in the same series of
books which from this date contain the minutes of the Carnegie Steel
Co. of New Jersey.)
Mat 4, 1903.
cramp's ACCOXraT.
Mr. McCacsland. The Cramp Co. borrowed $5,000,000, $500,000
of which had been subscribed by the corporation. Twenty per cent
of the money has been paid in, and they expect 20 per cent more in
UNITED STATES STEEL OOEPOEATION. 4065
about another week; the balance will follow from time to time. The
company will be controlled by three voting trustees, and it is the
intention to reorganize it and try to make it a success.
May 11, 1903.
Canada business can be picked up on the basis of 1.40 nulls, if it is
thought well to do so. Mr. Carpenter has now pending a handsome
inquiry from the Canadian Bridge Co.
PITKCHASE OF lEON FOB THIED QUAETEE.
Mr. CoEEY. I should hke to have the views of the board as to the
advisabihty of buying iron for the third quarter. There is under-
stood to be about 65,000 tons in the market for third-quarter dehvery,
and if we buy at this time it will be largely for the purpose of pre-
venting the furnace people from offering it around, and thus demoral-
izing the market. If we could buy up all that is to be had, it would
undoubtedly do a great deal to strengthen the situation. The price
would be around $18 Valley.
After discussion it was agreed that the iron for the third quarter
should be purchased on assurances from the furnace people that
65,000 tons was all the available iron for that quarter and that no
more would be put on the market.
May 18, 1903.
puechase of iron for third quarter.
Mr. Dickson. We have another option (a rather indefinite option,
but good for several days at least) — all the surplus iron of the
Valley Association for the third quarter, amounting to about 55,000
tons at $19 Valley. We also have an option from W. P. Snyder on
30,000 tons for the same period, same price. I think if we should
insist on $18.50 Valley both would agree to it; but of course we want
to pay them as much as the finished material will stand. I talked
with Mr. Willis King, of Jones & Laughlin's, this morning, and he
thinks $18.50 Valley would be sufficiently high to maintain finished
material. He says they expect to be purchasers to the extent of
about 10,000 tons during the fall. I do not think they could be
persuaded to go in with us and buy at the same time, as their action
will depend upon conditions later. I understand, too, that they
intend putting in a new converter.
Mr. CoEEY. Are you sure that they will take up all the available
iron?
Mr. Dickson. As sure as we ever are. It seems that they always
have some held back. However, they have both agreed to guarantee
the price against themselves. I und.erstand the matter will be dis-
cussed in the committee at New York to-morrow.
TENNESSEE COAL & IRON.
Mr. Corey. I algo observe from a letter of one of our agents that the
Tennessee Coal & Iron Co. are offering rails in the South at $2 above
the agreed price.
4066 united states steel corporation.
May 25, 1903.
meeting of presidents.
Mr. BoPE. As the presidents have decided on a meeting in the
second week of June to fix the price of rails for next year, we will
have a buying movement started in that direction shortly.
May 25, 1903.
Charles E. Dinkey elected to board of directors in place of Thomas
Morrison, resigned.
July 6, 1903.
Statement by Mr. Bope that to sell the International Harvester
Co. (which has a plant m Hamilton, Ontario), it was necessary to
quote as low as $1.15 and 11.20, which is so low that they would
allow the business to pass; and also that the Tennessee Coal & Iron
& Railroad Co. is controlled by the Louisville & Nashville Railroad
Co.
July 13, 1903.
The statement as to the Tennessee Coal & Iron Co. was cprrected
to read, "That they probably did so because they are interested in
the Tennessee Coal & Iron Co."
July 20, 1903.
foreign sale in competition with tennessee coal & iron 00.
Mr. BoPE. I am getting information as to the export market, and
expect to have aU the figures ready within a week. I think Mr.
Corey's idea with reference to the price of rails is about right, as
the Tehuantepec Railroad in Mexico has just placed an order in
which it would have been necessary for us to shade $20 mills a trifle
to compete. With Tennessee and Lackawanna in the market, I
think it will be necessary for the corporation to sell abroad about
200,000 to 250,000 tons of rails next year, figuring on running aU the
rail mills full.
July 27, 1903.
international harvester co.
Illiaois Steel Co. closed during the week with International Har-
vester Co. for 40,000 tons of material at price of 1.46^, Chicago.
While this is below the market, it was anticipated we should have to
make a special rate to these people in view of their position as manu-
facturers. We shall not announce, of course, the price of the con-
tract, but once it is known that the Harvester people have bought
it shall, and I beheve will, cause the other manufacturing people to
come into the market.
One of the best elements is the rapid depreciation of stocks. A
large buyer told me during the week that they have absolutely no
pig iron in their vard, and nothing bought ahead, and that to the
best of his knowledge this same condition applied to many other
UNITED STATES STEEL CORPORATION. 4067
kindred trades. The same is true of finishing material stocks, and
if the shadow of Wall Street should be removed I believe there would
be a handsome buying movement started.
August 13, 1903.
Alva C. Dinkey elected president m place of Corey, resigned.
August 17, 1903.
export selling agency.
Mr. Dinkey. What is it proposed to handle through the new
export selling agency that has just been estai)lished ?
Mr. Bope. That is what our meeting was called for on Friday, and
the export bureau, as decided upon, is to be a general selling agency
of all the constituent companies of the corporation, in charge of Mr.
Farrell, at present the export sales agent of the Steel & Wire Co.
They will handle Canadian, Mexican, and all other foreign business.
Mr. Farrell will be under the direction of the general managers of
sales. It is proposed to set aside some material for export from
now on, without regard to the condition of the domestic trade, so that
we can keep a hold on the business.
The export agency will attend to the shipment of the material and
to all matters of credit and collections. When collections are made
the proceeds will be deposited to the credit of the company shipping
the material.
Col. Hunsiker will be in charge of the European agencies, but he,
as well as Cassils and Highberger, will report to Mr. Farrell. Such
contracts as we have with Mitsui and other representative houses will
be canceled at once.
There is one exception to the territory in that Mr. Smith, at Buffalo,
will continue to handle this portion of Canada.
August 24, 1903.
exporting semifinished products meeting of presidents.
Mr. DiNKEY. At a special meeting of the presidents called for
to-morrow one of the questions that will be discussed is the advisa-
bility of exporting semifinished products, such as billets and sheet
bars, and I should like to hare the opinion of the members of the
board on the subject.
Mr. Bope. * * * At the prices now ruling for Southern pig and
scrap the iron mUls can make a little profit on the present selling
basis for bars, and apparently the only way we can hold our trade is
to cut steel bars to about 1.25 cents to 1.30 cents, basis Pittsburgh.
Of course a price like that would put a good many people out of
business, and we would have to consider the possible effect on other
lines of material; but I think it might be well for Mr. Dinkey to bring
the question up at the meeting to-morrow.
4068 united states steel corpokation.
August 31, 1903.
government bids penalty.
It was decided to make the bids subject to the Government penal-
ties, which formerly had not been made subject to penalties.
EXPOETING SEMIEINISHED PRODUCTS.
Mr. DiNKET. The question of exporting semifinished products was
also taken up and was finally decided in this way: The export bureau
is to sell abroad any raw or finished material on which they can show
a profit, including sheets and tin plates. It appears that while as a
general thing it will be impossible to export the finished sheets and
tin plates, there are a few markets where we can compete with the
European mills.
STEEL PLANT IN CANADA.
It was decided to allow the American Steel & Wire Co. to build a
plant for the manufacture of their products in Canada.
September 5, 1903.
export business.
Twenty-six thousand tons of material sold to Dominion Bridge Co.
of Montreal, Canada, at cost.
September 21, 1903.
Meeting of general managers of sales.
November 24, 1903.
Mr. BoPE. There is some evidence that the iron manufacturers are
g«tting pretty tired of the present low prices. The eastern iron
manuiacturers met last week and agreed to run only four days out
of the week, and to get Sternberg back into the fold, which they
succeeded in doing. In the West, RepubUc is making abnormally
low prices on iron, based on the very low cost of scrap * * *.
December 30, 1903.
dividends.
Letter from board of directors of United States Steel Corporation
suggesting the declaration of dividends as follows: Carnegie Co. capi-
tal stock, 26 per cent; the Pittsburgh Steamship Co. capital stock,
100 per cent; the OUver Iron Mining Co., 250 per cent.
Charles MacVeagh, general solicitor of Carnegie Steel Co.
January 25, 1904.
Mr. Campbell. The finance committee of the Steel Corporation has
decided that certain prices are to be used on ore, coke, pig iron pur-
chased outside, and other items in the inventory with which we start
UNITED STATES STEEL OOEPOEATION. ' 4069
the present year, and in order to carry out their wishes I should like
to have the board adopt the following resolution:
Resolved, That the auditor of this company be, and hereby is, authorized in closing
his books for the year ending December 31, 1903, to adjust values of ores on hand to
basis of 50 cents per gross ton less than base price for the season of 1903; coke on hand
to $1.80 per ton net at ovens; and other inventories and marketable and other securi-
ties in harmony with the recommendation of the finance committee of the United
States Steel Corporation.
Febetjart 1, 1904.
rail price.
Following Mr. Bope's remarks, the question of the advisability of
reducing the price of rails was discussed, and the opinion seemed to
be generalthat a conference should be held by representatives of the
manufacturers with representatives of the leading railroads to ascer-
tain what price would oe satisfactory to the latter and what tonnage
they would agree to place at that price. It was thought that $25 per
ton f. o. b. mill would be low enough to satisfy the rauroads, and that
such a price should be made if necessary, even if such a reduction
should lead to a cut in structural and plates.
March 7, 1904. .
Meeting of sales managers next week to consider the question of
advance m price.
April 4, 1904.
EXPORT company.
Contract with the United States Steel Exports Co. provides, amongst
other things, that the Carnegie company agrees that the price to be
charged by and to be paid by the export company for all merchandise
sold to the export company for resale iu foreign markets shall be such
price as may be obtained by the export company on resale of said
merchandise less such percentage as may be from time to time agreed
on between the Carnegie company and the export company, not
exceeding 5 per cent.
Mat 2, 1904.
crucible STEEL CONTRACT.
Contract with the Crucible Steel Co. to supply their entire supply
of raw materials on a sliding scale according to the price of pig iron.
OPERATING CONTRACT WITH THE UNION STEEL CO.
♦ It was resolved that the following contract be executed with the
Union Steel Co. :
Camerie Steel Company, a corporation of New Jersey, hereafter
called "Carnegie," and Union Steel Company, a corporation of Penn-
sylvania, hereafter called "Union," hereby agree as follows:
First. Union hereby leases unto Came^e from March 1, 1903, its
blast furnaces, open-hearth furnaces, and blooming null, and all equip-
ment connected therewith and used in the operation thereof, situate
at Donora, Washington County, Pennsylvania, and forming part of
4070 UNITED STATES STEEL COKPORATION.
its "Donora plant," and also its blast furnaces, open-hearth furnaces,
blooming mill, and plate mill, and all equipment connected therewith
and used in the operation thereof, situate at Sharon, Pennsylvania,
and being part of its "Sharon plant."
Second. Carnegie agrees to maintain and operate said plants in a
good and workmanlike manner, making all proper and needful repairs
thereto, in accordance with the requirements of the mortgage made
by the Union to the New York Security & Trust Company, dated
December 1, 1902, and to surrender up the said premises and prop-
erty to the Union in good condition at the expiration'or termination
of this lease. And as Union has transferred to Carnegie its property,
certain personal property, including inventories and cash assets, for
use by Carnegie for working capital in operating said property, Carne-
gie agrees upon the termination of this lease to return to Union an
equivalent value therefor, either in cash or inventories or other assets
acceptable to Union.
Third. Carnegie agrees to pay to Union as rental hereunder the net
income received by it from the operation of said plants after payment
of all expenses and taxes incurred by it in the operation and mainte-
nance of^said plants. The precise method under which said net income
shall be determined and the decision as to what constitutes said net
income to be agreed upon by the auditor of Carnegie and secretary of
Union. Carnegie agrees to render Union monthly detailed reports of
operations of me property in such form as may be satisfactory to
Union ; and also to make settlement in cash of all amounts due Union
in accordance with this section, quarterly, on or before the 25th day
of February, May, August, and November. In case the net result of
operation of the property should be a deficit, then Union will reim-
burse Carnegie therefor quarterly, on the same dates. Carnegie agrees
that in determining the net income of the property leased hereunder
it will allow credit for sales of products and materials manufactured
at and sold from said plants at a seUing price therefor equaling approx-
imately the prices which Carnegie may at that time be receiving for
similar products sold under similar conditions from other mills owned
or operated by Carnegie and located in the same district as are the
mills leased hereunder.
Carnegie further agrees that in determining such net income any
products and material transferred from the mills hereby leased to any
other mills or plants owned or operated by Carnegie shall be credited
at a price therefor equal at least to prices it would receive if said prod-
ucts or materials were sold to any company affiliated with the United
States Steel Corporation but not owned or operated by Carnegie.
Fourth. The cost of additions, construction, and improvements
made by the Carnegie to or on the property hereby leased shall, if the
same be not included in determining the net income, according to sec-
tion 3, hereafter be charged to Union, and Union agrees to reimburse*
Carnegie therefor quarterly, on the same dates as hereinbefore pro-
vided for setthng the net income, provided, however, that Carnegie
shall undertake no such additions, constructions, and improvements
except under the express sanction of Union.
Fifth. This lease shall continue for a period of one year from the
date hereof and thereafter until the same shaU be terminated by
either party giving unto the other six months' notice of its intention
so to terminate tms lease. This lease shaU not be assigned by Car-
UNITED STATES STEEL COEPOEATIOX. 4071
negie without the consent in writing of Union. All matters of dispute
arising between the parties as to this lease and agreement shall be
referred to the finance committee of the Steel Corporation as arbi-
trator, and its decision shaU be final and binding upon the parties
hereto.
Sixth. This lease is made by the Union and accepted by the Car-
negie under and subject to the provisions of the indenture between
Union and New York Security & Trust Company, dated Decembet 1,
1902.
In witness whereof the parties hereto have caused this instrument
to be duly executed this 2d day of May, A. D. 1904.
Carnegie Steel Company,
By A. C. Dinkey, President.
Attest: W. W. Blackburn, Secretary.
Union Steel Company,
By KiCHARD Trimble,
Vice President.
Attest: W. J. Filbert, Secretary.
June 20, 1904.
operating contract with clairton steel CO.
On motion by Mr. Blackburn, seconded by Mr. McCausland, and
carried by unanimous vote of the board, the proper officers of the
company were authorized to execute the following contract:
OPERATING CONTRACT.
Carnegie Steel Compariy, a corporation of New Jersey, hereafter
called "Carnegie," and Clairton Steel Company, a corporation of
Pennsylvania, hereinafter called "Clairton," hereby agree as follows:
First. Clairton hereby leases unto Carnegie from June 1, 1904, its
blast furnaces, open-hearth furnaces, and blooming mU], and all equip-
ment connected therewith and used in the operation thereof, situate
at Clairton, Allegheny County, Pennsylvania, and known as the
Clairton plant.
Second. Carnegie agrees to maintain and operate said plant in a
good workmanhke manner, making all proper and needful repairs
thereto, and to surrender up the said premises and property to
Clairton in good condition at the expiration or termination of this
lease. And as Clairton has transferred to Carnegie with said property
certain personal property including inventories and cash assets for use
by Carnegie for working capital in operating said property, Carnegie
agrees upon the termination of this lease to return to Clairton equiva-
lent value therefor either in cash or inventories or other assets accept-
able to Clairton.
Third. Carnegie agrees to pay Clairton as rental hereunder the net
income received by it from the operation of said plant after payment
of all expenses and taxes incurred by it in the operation and mainte-
nance of said plant. The precise method under which said net income
shall be determined and the decision as to what constitutes net
income to be agreed upon by the auditor of Carnegie and the secretary
of Clairton. Carnegie agrees to render Clairton monthly detailed
reports of operations of the property in such form as may be satis-
4072 UNITED STATES STEEL COKPORATION.
factory to Clairton; and also to make settlement in cash of all amounts
due Clairton in accordance with this section, quarterly on or before
the 25th days of February, May, August, and November. In case
the net result of operation of the property should be a deficit, then
Clairton will reimburse Carnegie therefor quarterly on similar dates.
Carnegie agrees that in determining the net income of the property
leased hereunder it will allow credit for sales of products and materials
manufactured at and sold from said plant at a selling price therefor
equahng approximately the prices which Carnegie may at that time
be receiving for similar products sold under generally similar condi-
tions from other mills owned or operated by Carnegie and located in
the same district as is the plant leased hereunder. Carnegie further
agrees that in determining such net income any products and mate-
rials transferred from the plant hereby leased to any other mills or
plants owned or operated by Carnegie shall be credited at a price
therefor equal at least to prices it would receive if said products or
materials were sold to any company aflElliated with the United States
Steel Corporation, but not owned or operated by Carnegie.
Fourth. The cost of additions, construction, and improvements
made by Carnegie to or on the property hereby leased shall, if the same
be not included in determining the net income according to section
third thereof, be charged to Clairton, and Clairton agrees to reim-
burse Carnegie therefor quarterly on the same dates as hereinbefore
provided for settUng the net income, provided, however, that Carnegie
shall undertake no such additions, construction, and improvements
except under the express sanction of Clairton.
Fifth. Tliis lease shall continue for a period of one year from the
date hereof, and thereafter until the same shall be terminated by
either party giving unto the other six months' notice of its intention
so to terminate this lease. This lease shall not be assigned by Car-
negie without the consent in writing of Clairton. All matters of dis-
pute arising between the parties to this lease and agreement shall be
referred to the finance committee of the United States Steel Corpora-
tion as arbitrator, and its decision shall be final and binding upon the
parties hereto.
In witness whereof, the parties hereto have caused this instrument
to be duly executed this day of A. D. 1904.
Carnegie Steel Company,
By , Prmdent.
Attest :
, Secretary.
Clairton Steel Company,
By , President.
Attest : ^
, Secretary.
united states steel corporation. 4073
June 27, 1904.
oliver iron & steel co. contract.
We have closed up the Ohver Iron & Steel Co. contract on the basis
of 11 tons of coke for one ton of billets, the old scale having been
increased by 25 cents per ton. This removes the possibihty of their
going into the manufacture of steel by taking the coke out of the way,
and while the price of steel is not high at present pig-iron rate, the
contract will be a good one over a period of years.
STOCK OF THE HARVEY UNITED STEEL CO. (LTD.).
I should like to have authority from the board to sell the stock held
by this company in the Harvey Steel Co. (Ltd.), amounting to 13,537
shares, representing a book value of $56,415 and a market value of
about $75,000. The president is thoroughly familiar with the circum-
stances in this case. It seems that Mr. Balsinger is going abroad in a
week or ten days and will confer with Col. Hunsiker about certain
concessions that we want the Harvey company to make us, one of
which is that we want to be protected from Midvale to the extent of
the royalty on the armor, and another is the withdrawal of the suit
that we and Bethlehem are involved in. If the Harvey company will
not make this concession it will probably be desirable to sell the
stock, and it is accordingly desired to place the securities in the pos-
session of Messrs. Hunsiker and Balsinger for sale in case it is deemed
advisable to dispose of them.
On motion by Mr. Singer, seconded by Mr. Bope, and carried by
unanimous vote, it was resolved that authority be given to Mr.
McCausland to place the securities referred to in the possession of
Messrs. Hunsiker and Balsinger for sale at their discretion.
Jtot 11, 1904.
Sale of rails to Lancashire & Yorkshire Kailroad Co. through the
export company.
July 18, 1904.
extraordinary competition in axles.
There is nothing, much new in the market except the extraordinary
competition for axles. Some of the prices made are simply astound-
ing, especially considering the fact that our competitors nave to buy
their billets at a figure that does not permit of more than $2 per ton
for conversion.
July 25, 1904.
reduction in price of tin plate.
Mr. BoPE. The sheet and tin plate company are reducing their price
of tin plate 15 cents per box, wnich will undoubtedly bring out a vig-
orous protest from the other tin-plate makers. I understand the
Youngs town Iron Sheet & Tube Co. have shut down their mill and
4074 UNITED STATES STEEL COKPOEATION.
are buying black plates from the sheet and tin company, and I think
under existing prices that a good many of the independents will have
to adopt the same policy.
August 1, 1904.
contract with railway steel spring co. profit.
Mr. BoPE. After a three days' session with the Railway Steel Spring
Co. we closed with them for 75 per cent of their requirements. The
contract is nominally for one year, but it is understood to cover their
requirements for a number of years. The sale wUl net us a profit
anywhere from $5 to $8 per ton this year, with a sliding-scale arrange-
ment that will mean a large profit on the higher prices.
August 15, 1904.
Sale of Kimberley Mills property.
December 12, 1904.
SALES OF independents.
Mr. BoPE. In raw materials the demand continues just as heavy.
People who recently bought 2,000 or 3,000 tons because we would not
sell them any more are now anxious to increase their orders and we
could book an enormous tonnage, but the constituent companies are
pressing for deliveries; in fact, we have had to ask Mr. Corey to
suspend export shipments and have cut down the independents to
the minimum in order to take care of the sheet and tin plate company.
March 20, 1905.
sales from clairton.
Mr. BoPE. We closed on Friday with Pittsburgh Steel Co. for their
year's requirements, after completion of the present contract. The
steel involves 121,000 tons, at $23, delivered Monessen and Glassport,
and as shipments will practically all be made from Clairton it will
net us a nice figure.
April 5, 1905.
purchase of pig iron.
Mr. DiNKET. We have bought 22,000 tons of pig iron for April
delivery at $15.50, 22,000 tons from the association, 9,000 tons from
Rogers, Brown & Co., and the remainder from Cherry Valley. That
is all the iron on the market.
PURCHASE OF OLIVER IRON MINING CO. STOCK.
Mr. Blackburn stated that an arrangement had been made for
gurchase by the company of 2,000 shares of the Oliver Iron Mhung
o., for which it was proposed to give $2,250,000 par value of the
stock of the Carnegie Steel Co., which is hereby in all respects ratified
and approved; and it was further
Resolved, That it is advisable to increase the capital stock of the
Carnegie Steel Co. from $63,000,000 to $65,250,000; and it was further
jd^M
UNITED STATES STEEL COEPOKATION. 4075
Resolved, That, the foregoing resolution for the increase of the capi-
tal stock of the company from $63,000,000 to $65,250,000 be put
before the next annual meeting of the stockholders to be held at
No. 51 Newark Street, Hoboken, N. J., April 17, 1905, etc.
June 19, 1905.
writing off expenditures between the several carnegie
companies.
Resolved, That this company, the parent company of Carnegie Steel
Co. of Pennsylvania, authorize the said Carnegie Steel Co. of Penn-
sylvania to charge Carnegie Steel Co. of New Jersey $445,961.66,
being that portion of its authorized write-off of construction and
capital expenditures December 31, 1904, in excess of its surplus avail-
able for that purpose. The Carnegie Steel Co. of New Jersey is to
charge this allowance on its books to its surplus as at December 31,
1904.
July 3, 1905.
Winthrop Iron Co. owned by Carnegie Co.
July 10, 1905.
Special loan by the Carnegie Co. from the United States Steel Cor-
poration directed to be made and secured by 5 per cent notes payable
yearly by the United States Steel Corporation.
July 24, 1905.
price of mill at clairton.
Mr. Bope stated that they could buUd a mill at Clairton for $300,000
in 60 days which would pay for itself in two months.
August 7, 1905.
Mr. Dinkey stated that the mill at Clairton appears to be what we
expected — a decided sucess.
August 28, 1905.
open hearth steel.
Mr. BoPE. The tendency is steadily in the direction of open-hearth
steel ; we are not able now to supply the Homestead-Bessemer with a
full schedule. The use of Bessemer is now practically confined to
rails, wire nails, and standard bars, and even in the bars, wherever we
supply steel to replace iron bars, we have to use soft non-Bessemer
steel. Some tonnage goes into tank work, but there is not a great
deal of this. The steel and wire company would prefer open hearth
if they did not have their own Bessemer production; and when they
get their Donora mill fairly in operation they will draw on our open-
hearth output at that plant. Taking the trade as a whole, I do not
see where there is going to be any considerable demand for Bessemer
in the future. At any rate, we have considerable Bessemer produc-
tion at other points.
Increase of capital stock from $63,000,000 to $65,250,000 approved
by stockholders and provided for by amended certificate of incor-
poration, etc.
31572— No. 53, pt. 2—12 22
4076 united states steel coepobation.
November 20, 1905.
meetings of presidents refekbed to.
President Dinkey. We have had a president's meeting since our
last board meeting and the business of the meeting was to go oyer
appropriations asked for. I think we will come out of the meeting
with only two of our requests to be withdrawn, etc.
INCKEASE IN CAPITAL STOCK AND PURCHASE THEREBY OF OLIVER IRON
MINING CO. STOCK.
The following resolution was offered by Mr. Blackburn:
Whereas, the stockholders of this company at a duly called meeting,
held at Hoboken, N. J., Wednesday, November 15, 1905, author-
ized the capital stock of this company to be increased from
$63,000,000 to $65,250,000, and the purpose for such increase of
capital stock being for the purchase of one-sixth interest of the
capital stock of the Ohver Iron Mining Co., owned by the United
States Steel Corporation.
Resolved, That the proper officers of this company be and they are
hereby authorized and directed to issue a certificate for $2,250,000 of
the capital stock of this company to the United States Steel Corpo-
ration in payment for $200,000 par value of the capital stock of the
Oliver Iron Mining Co., being one-sixth of the outstanding stock of
said company. This resolution was seconded by Mr. Kerr and passed
by unanimous vote.
December 26, 1905.
Operating contract between Carnegie Steel Company, a New
Jersey corporation, and Carnegie Steel Company, a Pennsylvania
corporation.
Carnegie Steel Company, a corporation of Pennsylvania, hereinafter
called ' 'Pennsylvania ' and Carnegie Steel Company, a corporation of
New Jersey, hereinafter called ' 'New Jersey," hereby agree as follows:
First. For and in consideration of the sum of one dollar, as well as
other good and valuable considerations, to it in hand paid, the receipt
of which is hereby acknowledged, Pennsylvania hereby leases unto
New Jersey all of its plants and properties and all equipment connected
therewith and used in the operation thereof situate in the State of
Pennsylvania.
Second. New Jersey agrees to maintain and operate said plants in
a good and workmanhke manner, making all proper and needful
repairs thereto, and to surrender up the said premises and property
to Pennsylvania in good condition at the expiration or termination
of this lease and to pay all the taxes and water rents which may be
assessed against said properties during the continuance of this lease.
And as Pennsylvania has transferred to New Jersey with said con-
tract certain personal property, including inventories and cash
assets, for use by New Jersey for working capital in operating said
property. New Jersey agrees upon the termination of this lease to
return to Pennsylvania an equivalent value therefor, either in cash
or inventories or other assets acceptable to Pennsylvania.
Third. This lease shall continue for a period of one year from the
date hereof and thereafter until the same shaU be terminated by
UNITED STATES STEEL COBPOEATION. 4077
either party giving unto the other six months' notice of its intention
so to terminate this lease.
Fourth. This lease shall take effect as of the first day of April, 1903.
Witness the due execution hereof by the respective parties this 25th
day of July, 1904.
Attest: W. W. Blackburn, Secretary.
Caknegie Steel Company,
A Pennsylvania Corfoeation,
By A. C. Dinkey, President.
Attest: James J. Campbell, Secretary,
Carnegie Steel Company,
A New Jersey Corporation,
By H. B. BoPE, Vice President.
January 22, 1906.
cambria steamship co., subscription foe stock op.
Eesolution that "Whereas the Carnegie Steel Co. is the owner of
20 per cent of the capital stock of the Mahoning Ore & Steel Co., and
whereas the Cambria Steamship Co. is being organized by stock-
holders of Mahoning Ore & Steel Co. for the purpose of owning boats
to be used in carrying ore to the lake ports;
Resolved, That the president of this company is hereby authorized
to subscribe for this company its proportionate share of the capital
stock of the Cambria Steamship Co., being 900 shares, of the par
value of $100 per share, or 190,000."
February 5, 1906.
Subsci'iption for 51 per cent of capital stock of Mahoning Limestone
Co., which is to take over the assets of the LowellvUle Limestone Co.
March 19, 1906.
tennessee coal & iron co. bails compaeed to bessemer rails.
Mr. BoPE. * * * The general superintendent of the Pitts-
burgh & Lake Erie told us the other day that after testing open-
hearth rails furnished them by the Tennessee Coal & Iron Co. and
our Bessemer rails they have decided that open-hearth are twice as
good as Bessemer rails. He wanted to know when we would be able
to make open-hearth raUs, and said they would be willing to pay a
little more for open-hearth than for Bessemer. The same thing has
come to us from two. or three other people, indicating that the rail-
roads are paying a little attention to the matter. At the time when
they Avere buying rails we could not make open-hearth, and of course
they took Bessemer, and they wUl not be able to get open-hearth
anywhere in this country for the next year and a half; but I imagine
that when the demand for rails falls off, which will probably be in
1907, on account of the heavy purchases made last year and this,
then we will be up against the open-hearth proposition good and
hard.
4078' united states steel coepokation.
April 2, 1906.
international harvester co. competition.
Mr. BoPE. When I reported last week on the subject of bars that
I was in favor of standing pat with the agricultural people, I did not
quite Understand the situation. It has since developed that their
request was made principally on account of the competition of the
International Harvester Co', which has become so serious as to
threaten the existence of a good many of the smaller agricultural
concerns. They are extending their operations to almost everything
the farmer needs. They could now manufacture all the binders
needed in this country, and are making other lines of agricultural
machinery and have recently gone into the manufacture of wagons.
They turned out 12,000 wagons last year, have doubled capacity for
this year, and next year expect to turn out about 100,000. They
make all their own steel, and all this tonnage has been taken away
from the steel manufacturers. After carefully considering the matter
we decided we could not grant the price they asked for — 1 .30 cents—
but that we would make them a price of 1 .40 cents. We got together
on Saturday and, while we did not vote a certain price, we came to
the understanding we would reduce the price to the agricultural and
wagon manufacturers only for 15 days, and those ^who do not come
in by that time will have to pay 1*50 cents. The matter was put up
to the committee who waited upon us, and they claimed to be very
indignant, and they said they were going to call a meeting of the
association in Chicago and start a tariff agitation among the farmers
against the Steel Trust.
June 11, 1906.
government investigations.
Mr. BoPE. * * * \ number of other very important mat-
ters came up during the week, which developed later, so there does
not seem to be a great deal of lack of confidence in the future among
the buyers. . They seem to feel that things will come out all right
in the end, and with the adjournment of Congress I believe business
will go right along. These investigations have naturally caused a
little doubt in the minds of men as to just what is going to happen.
We are going into a new era, and, like every case of that sort where
men can not see what is ahead of them, they hesitate a little. The
same conditions prevailed six or seven years ago when the large
combinations of capital began to be formed, which marked a new
era in the industrial world. These things were a benefit at the time,
and are a benefit to-day, vet on account of the abuses which some of
them have undoubtedly been guilty of we wdl have to figure that
there will have to be some sort of control or regulation, and we will
have to take it and make the best of it; and I do not know but what
it will be better to have these things done by Republicans than by
Democrats. A great many people fear this agitation may cause the
election of a Democratic Congress this fall, and I believe legislation
of this kind would have a worse effect upon business if enacted by a
Democratic than by a Republican Congress. I wanted to mention
these things because they are actually occurring and are having
some effect upon commercial conditions.
UNITED STATES STEEL COKPOEATION. 4079
COLUMBTJS STONE CO.
Purchase of one-third mterest (200 shares), at $32,674.83.
July 16, 1906.
sale of steel.
Mr. BoPE. We have served notice on a lot of contracts expiring
January. 1 that we will not renew them. As a matter of fact we
need hardly sell a pound of raw steel now to outsiders. At Duquesne,
for instance, the new lined mill is now taking 65 tons of steel per
day, and before long we will be taking 100 tons per day, and as every
bit of this is taken from the trade, the situation is growing worse
all the time. There is, of course, an element of strength in the fact
that other people are being crowded for steel, and while they can
not get it it will make the situation that much stronger until some-
body gets in with an entirely new plant. Somebody will have to
prepare to take care of these people we are turning down, and it
means a new steel plant somewhere.
November 5, 1906.
skelp foe tubes.
The tube company will be getting the benefit of their higher prices
this month, and commencing December 1 they wiU be paying us at
least $2, and possibly $3 to $4, more per ton for their sKelp than at
present. I have already arranged this.
December 3, 1906.
price of pig iron.
Mr. BoPE. The average price of pig iron for November was $22.81,
covering sales of about 36,000 tons, which is enough to make a
market. This wiU have the effect of advancing the price on our
raw material contracts over the third quarter price nearly $3 per ton.
It will make the majority of our billet contracts, crucible for instance,
pretty nearly $29 per ton, and Ohver will pay $30. When you
consider that the price of finished material to-day is only $3 to $4
per ton above this figure, and considerable finished material is sold
on old contracts at a much lower price than that of to-day, how these
people can pay this price for their raw material is a pretty hard
problem. I can not but feel the price of pig iron is too high, yet it
IS legitimate because the demand is here. There is some pig iron
being imported now, but I can not say to what extent.
January 14, 1907.
government investigations.
Mr. BoPE. There is a growing feeling among business men that
these investigations of corporations and railroads are creating a
general feeling of unrest and distrust, and while this is not serious
enough yet to affect business at all, it can not go on indefinitely
4080 UNITED STATES STEEL COKPORATION.
without some trouble coming out of it. Yet the people are going
ahead contracting, buUding, and enlarging m all directions and
there does not seem to be any reason why this should not be as
good a year or better than the last.
February 25, 1907.
BXryiNG BY AGRICULTURAL PEOPLE.
In bars the agricultural people have been sounding us with regard
to their requirements next year. We have practicalhr 11 months'
work on the books the way we are running now, and I do not know
what we will do with these people; they say they can not afford to
pay 1.60 cents and have sent a very silly protest to the president
regarding the position taken by the Steel Trust, as they call it. Mr.
Baker asked me the other day what I thought we had better do,
and I told him I did not know; but as they will not start to place
the business for about 60 days yet we may see our way a Uttle more
clearly then than we do now.
March 18, 1907.
purchase of manganese mining lease, ukwa property, balaghat,
INDIA.
The Carnegie Co. purchased a mining lease of manganese ore land
in Balaghat, India, through J. Kellerschon, and through him per-
fected an assignment to this company.
April 15, 1907.
Eeports of managers of sales referred to.
May 27, 1907.
no concession to agricultural association.
Mr. BoPE. I also had a very satisfactory interview with two mem-
bers of the Agricultural Implement Manufacturers Association. They
stated their case, and I explained fully to them why we could not
make any concession, and they appeared to be perfectly satisfied with
the position we have taken.
June 24, 1907.
failure of milliken bros., and basic steel co.
Mr. BoPE. There are some things in the situation which are going
to have an effect upon the raw end. Milhken Bros, have gone into
the hands of a receiver and shut down their rolling mills. For the
present at least it is the intention to operate only their structural
plant, and they are now iti the market to buy the tonnage required
to fill their contracts, amounting to 45,000 tons to be placed and
taken out within the next six or eight months, besides any additional
steel they wiU need on new contracts the receivers may make. This
is tonnage which they had figured upon making themselves, but which
will now come into the market. It may not come to us, but in any
event it means that much capacity shut down.
UNITED STATES STEEL CORPOKATION. 4081
The Basic Steel Co. have also shut down their rolling mill, possibly
for good, and will operate only their structural plant ; and one or two
of the other eastern concerns are reported as being a little shaky.
This is all due to the fact that the raw material has gone so high that
the people who have to buy very heavily are simply down and out;
there has not been maintained a relative difference between raw and
finished products to enable them to continue operations at a profit.
It is not a condition that anybody is responsible for, simply due to
the fact that supply and demand have been such that finished prices
could not go up, and raw material being so scarce, prices were raised
on it.
July 1, 1907.
competition eliminated.
Mr. BoPE. I can not find any pessimistic feeling anywhere. Take
our own situation, as I reported it to the president on Saturday. On
open-hearth billets we will have an accumulated deficit for the next
six months of 40,000 tons per month, in addition to what we are back
as of the 1st of this month. This situation has been changed by the
Milliken Bros, and Basic shutting down their rolling mills; they will
hereafter be purchasers instead of manufacturers. Milliken Bros, will
have something like 25,000 to 50,000 tons of steel to buy to complete
their contracts, with the new work which the receivers will undoubt-
edly figure on.
The Eastern Steel Co., it is reported, is not in very good shape
financially, and it is possible they will also shut down. This will
eliminate all of our new competition outside of Bethlehem and will
make our proposition, on the whole, difficult.
September 2, 1907.
Advanced payments to Allis-Chalmers Co. on account of contracts
set forth.
January 6, 1908.
price of foundry iron by republic.
Mr. BoPE. We heard from Chicago to-day, but have not had time
to confirm it, that Republic is offering foundry iron in the Birming-
ham district at $12.85, which is equivalent to about 116.50 Pittsburgh.
Mr. Dinkey. I understood they had fixed the price down there at
$13. It may be due to a difference of 15 cents in the freight, some one
using the wrong rate to the delivery point, and makmg the price
appear as equivalent to 112.85 Birmingham. I do not believe they
have made a cut.
January 20, 1908.
price of billets and pig iron.
Mr. BoPE. Billets are very strong and can not be obtained under
128 Pittsburgh, and yet pig iron has sold during the week at $16.50 in
the valley; and how we can maintain a differential between them and
$28 for billets I don't know.
4082 united states steel gobpoeation.
January 27, 1908.
pkice of pig iron and billets.
Mr. BoPE. * * * The price of pig iron has gone down so that
the parity between it and billets is beginning to attract the attention
of the buyers, although billets and sheet bars are ^ery strong to-day,
and the independents are not asking for any reduction in the price;
but it is a question how long such a big differential can be maintained
without having some effect on the market.
February 10, 1908.
holding market by cooperation with steel people.
Mr. BoPE. * * * The efforts to hold the market continued last
week, the ore and pig-iron people reaffirming prices, and the bar-iron
people advanced their price practically $3 per ton, making the basis
$1 .50 Pittsburgh for both east and west. That is due to two or three
causes, one, the advance in the price of scrap, and another the fact
that they were not really getting as much business at the low price as
they had been at the higher figure, and furthermore to their willingness
to cooperate with the steel people in an endeavor to hold this market
over the depression.
February 17, 1908.
agricultural purchasers international harvester co.
Mr. Singer. Have the agricultural people quit buying ?
Mr. BoPE. All their stuff for this season's business has been taken
in, and they have not yet started on that for next season. They do
not, however, cut nearly as much of a figure as in the old days. Their
tonnage to-day, not figuring the International Harvester Co., who
now make all the steel they use, amoimts to only about 300,000 tons
per year, which is insignificant compared with the total.
April 20, 1908.
rail committee.
Mr. BoPE. * * * The railroads are evincing a little more
interest, and when the raU committee accept their specifications this
week there will be nothing whatever to prevent negotiations between
the railroads and the mills.
May 18, 1908.
Meetings of local sales managers held at Cleveland, Pittsburgh, St.
Louis, and Chicago.
STEEL AS THE DOMINANT FACTOR IN THE PROSPERITY OF THIS COUNTRY.
Mr. BoPE. * * * Of course one might say what has public
sentiment to do with a business they do not know much about, but
steel has been the dominant factor in the prosperity of this country
for so many years that everybody has been stating it, until they are
now just about as familiar with the general conditions as the man
actually in it.
united states steel cokpoeation. 4083
June 15, 1908.
sale of stock of 18 ginning companies.
Resolution to get rid of stock of various ginning companies.
Some years ago we acquired stock in 18 ginning companies located
in various places in the South, for the purpose of developing and
protecting the square bale industry in whicn cotton ties are used.
The round-bale process at that time was being introduced and
threatened the nmls which were using the square-bale system. The
operations of the plants in which we are interested have not been
profitable, as expected, and it has now been deemed advisable to
dispose of our various holdings at such times and in such manner as
Mr. C. C. Harrison, president of the Atlanta Compress Co., of Atlanta,
Ga., can dispose of the same.
OPERATING CONTRACT OF SHARON BY-PRODUCTS COKE PLANT.
Upon motion by Mr. Blackburn, seconded by Mr. McCausland, the
board unanimously authorized the execution of the following con-
tract :
Carnegie Steel Company, a corporation of New Jersey, hereafter
called "Carnegie," and Sharon Coke Company, a corporation of
Pennsylvania, hereafter called "Sharon," hereby agree as follows:
First. Sharon hereby leases unto Carnegie from the first day of
— , 1906, its by-product coke plant consisting of 212 ovens,
together with the equipment connected therewith and all auxiliary
departments situated at South Sharon, Mercer County, Pennsylvania.
Second. Carnegie agrees to maintain and operate such plant in
a good and workmanlike manner, making all proper and needful
repairs thereto in accordance with the requirements of the mortgage
made by Sharon to the Union Trust Company, of Pittsburgh, trus-
tee, dated December 2, 1901, and to surrender up the said premises
and properties to Sharon in good condition at the expiration or
termination of this lease. And as Sharon has transferred to Carnegie
with said property certain personal property, including inventories
and cash assets, for use by Carnegie for working capital in operating
said property, Carnegie agrees upon the termination of this lease to
return to Sharon an equivalent value therefor, either in cash or
inventorie'^ or other assets acceptable to Sharon.
Third. Carnegie agrees to pay to Sharon as rental hereunder the
net income received by it from the operation of said plant, after pay-
ment of aU expenses and taxes incurred by it in the operation and
maintenance of said plant. The precise method under which said
net income shall be determined and the decision as to what con-
stitutes net income to be agreed upon by the auditor of Carnegie
and the auditor of Sharon.
Carnegie agrees to render Sharon monthly detailed reports of oper-
ations of the property in such form as may be satisfactory to Sharon,
and also to make settlement in cash of all amounts to Sharon in
accordance with this section quarterly on or before the 25th day
of January, AprU, July, and October. In case the net result of the
operation of the property should be a deficit, then Sharon will reim-
burse Carnegie therefor quarterly on similar dates.
4084 UNITED STATES STEEL COKPOEATION.
Carnegie agrees that in determining the net income of the prop-
erty leased hereunder, it will allow credit for the sale of products
and by-products at the exact prices realized from the constituent
companies of the United States Steel Corporation and their cus-
tomers, and for any of such products and by-products transferred
to other plants owned or operated by Carnegie, the prices agreed
upon from time to time as fair and reasonable for the exchange of
similar commodities between constituent companies of the United
States Steel Corporation.
Fourth. The cost of additions, construction, and improvements
made by the Carnegie to or on the property hereby leased shall, if
the same be not included in deterimning the net income according
to section three hereof, be charged to Sharon, and Sharon agrees to
reimburse Carnegie therefor quarterly on the same dates as herein-
before provided for settling the net income: Provided, however, That
Carnegie shall undertake no such additions, construction, or improve-
ments except under express sanction of Sharon.
Fifth. This lease shaU continue for a period of two years from
September 1, 1906, and thereafter until the same shall be terminated
by either party gvraxg unto the other six months' notice of an inten-
tion so to terminate this lease. This lease shall not be assigned by
Carnegie without the consent in writing of Sharon. All matters of
dispute arising between the parties to this lease and agreement
shall be referred to the finance committee of the United States
Steel Corporation as arbitrator, and its decision shall be final and
binding upon the parties hereto.
Sixth. This lease is made by Sharon and accepted by Carnegie under
and subject to the provisions of an indenture between Sharon and the
Union Trust Company of Pittsburgh, trustee, dated December 2,
1901.
In witness whereof the parties hereto have caused this instrument
to be duly executed this day of , A. D. 1908.
July 2, 1908.
schoen steel wheel co.
The purchase for $650,000 cash and 1846,000 par value of first
mortgage 5 per cent gold bonds of the Schoen Steel Wheel Co., and a
further consideration of the guarantee by the Carnegie Steel Co. of an
issue of first mortgage 5 per cent gold bonds of the Schoen Steel Wheel
Co., issued and outstanding in the aggregate value of $1,350,000,
approved.
The agreement and supplementary agreement were executed and
also the guarantee of the Donds.
July 6, 1908.
demooratio platform.
ilr. BoPE. * * * The poUtical situation is holding matters a lit-
tle; people waiting not because they have any doubt about Bryan's
nonunation, but to see what the Democratic platform is going to be.
If very radical, it wiU stop things perhaps for a couple of weeks until
it can be digested; but people wifl not hold off everything, because
they are anxious to go anead. After this is out of the way and the
UNITED STATES STEEL COEPOBATION. 4085
campaign really begins I believe that the sentiment will be so strongly
in favor of jTaft that it will carry business along with it just as it did
in 1896
July 13, 1908.
political conditions.
Mr. BoPE. * * * The political situation, I beheve, is going to
settle itself reasonably quick if we can get the mills in operation, for
this is necessary. I think it is going to be put before the people in
the Hght that the Presidency is the biggest job in the country for
which two men have applied, and from a busiaess standpoint the one
best equipped to do it should be elected, and' if looked upon in this
way the drift will be toward Taft very early in the campaign. The
situation will be helped, if it is true, as recorded in the mining papers,
and preparations have been made and the President has directed that
contracts be entered into immediately covering all supphes needed by
the Government, which will mean a large number of contracts and
amount to something hke $750,000,000. Even if the contracts are
not started on right away this would have a very good effect, as it
will give people assurance to go ahead in other directions. I have
never seen sentiment in favor of getting to work stronger than it is
to-day, and this is true all over the country.
July 20, 1908.
presidential contest.
There is a feeling that while Bryan is going to make a strong fight
he is going to be defeated, yet there is just a httle uncertainty about
it, and the campaign is not far enough along to show anything very
definite as yet. But let it be indicated by the middle of September
or 1st of October that Taft's election is sure and, in my opinion, we
will see the money going to the railroads and lots of tonnage come in
that is being held up, and that we will "have a repetition of 1904 as a
matter of fact; the conditions are so absolutely similar that it seems
to me the results are going to be pretty much the same. As a straw,
our St. Louis agent told me this morning that one buyer in his dis-
trict, and a Democrat, has said to him that as soon as he can see that
Taft is going to be elected he wiE place an order for 10,000 tons of
pig iron.
September 21, 1908.
structural material and plates, price cutting.
Mr. BoPE. Another interesting feature has developed recently that
there has been price cutting in both structural material and plates
some of the eastern makers not hesitating to say they have done so.
While we have been getting our relative proportion of the tonnage
E laced in each line, it has been secured only by the hardest kind of
ard work and is due to our organization, scattered in every section
of the country, and the tonnage that we have had, excepting in bars,
has been simply an accumulation of small orders. With this price
cutting uncovered now, we beheve it will cease.
4086 uxited states steel cobpokation.
October 12, 1908.
political situation.
Mr. BoPE. With regard to the poUtical situation, after talking with
our agents, who were all here during the week, I can not help but feel
that the drift has now set in steadily for Taft, not on his own account,
but simply because business men are beginning not only to think but
to talk, that the interests of the country demand his election, and
that if the tariff must be revised it had better be done by the Repub-
lican than the Democratic Party. When in New York last week,
those whom I talked with seemed very confident that Taft will carry
the State by at least 50,000, but thought that Hughes is going to be
defeated. A canvass made of our own works in this district last week
shows a httle better condition than I had really expected would be
found ; that on an average about 75 per cent of the men in our employ
are for Taft, although at some of the mills as much as 50 per cent of
the men are talking blind. There is no question but that he is stronger
among the workingmen this year than in any of his previous cam-
faigns; but he is not so strong among the conservative ousiness men.
figure, however, that if other wage-employing locahties are affected
to the same extent as we find conditions here, it will Ukely result in
some of the doubtful States going Democratic. But with the efforts
that are making now for a strong finish to the campaign I beUeve
that Taft is going to win out.
October 26, 1908.
political conditions.
Mr. BoPE. * * * While there is a great deal of talk about
business being held up contingent upon the election of Taft, so far as
I can learn it is very largely talk. I know of only one actual case,
which Mr. Baird, of Tennessee, told me about, 10,000 tons of pig
iron ordered to be shipped in the event of Taft's election, otherwise
the order to be canceled.
November 9, 1908.
Price of rails for 1909 fixed at $28 for Bessemer and $30 for open
hearth.
COMPETITION.
Mr. BoPE. * * * What worries us more than anything else in
the situation is the growth of competition. For instance, I was told
this morning that Mlliken Bros, are going right ahead on two blast
furnaces and billet and bar mills. They are figuring on using
ore and eastern hmestone, but wiU of course have to figure on getting
their coke out of this region somewhere. These people have locatea
on Staten Island, and tnis will mean formidable competition in the
export business at least. They are still in the hands of the receivers,
but I understand are ready to be taken out.
united states steel corpohatiof. 4087
December 7, 1908.
tariff legislation.
Mr. BoPE. * * * I had a talk on Friday last with a party who
had just returned from Washington and who is in pretty close touch
with the tariff situation, and he said he has no doubt but that there
will be some reduction made in the steel schedules, and it is possible
it will be as much as 50 per cent, although on account of the harm
this would do the independent manufacturers, and this feature has
been strongly placed before the committee, it may not be so great. I
think, however, if we can get the railroads started to buying and get
a good spring in the business by the time the law is settled that even
a reduction is not going to affect business over the next two or three
years at least. It is my opinion that there is reaUy more sentiment
than actual loss or gain involved in this matter, and that if we can get
it out of the way and have it settled for a term of years nothing will
interfere with the tremendous swing in business that is evident for
some considerable time.
December 21, 1908.
cooperative policy.
Mr. BoPE. * * * ^g gji(j^ however, that people are getting
results under the cooperative policy. Lackawanna, for instance, told
me they have a structural contract on which they are getting orders
for shapes, but can not get any of the plates, and upon taking up the
matter they were advised that the orders would not be placed with
them while they can be secured at $2 per ton under their price.
Generally speaking, manufacturers would like to see prices maintain,
but not for the benefit of only one or two, and I do not know how
long the situation can be held under the conditions that exist .
December 2S, 1908.
Elimination of jobbers and introduction of warehouse system
suggested.
January 4, 1909.
tariff and sherman antitrust act.
Mr. BoPE. * * * The whole outlook in fact appears to us to
be distinctly better. The only two clouds that we can see now are
the tariff and the Sherman Antitrust Act. The passage of the
emergency currency bill last spring while not used is a safeguard to
this extent and has strengthened the financial situation, but this
question ought to be put in such shape that it will not be possible
again to have a condition similar to tnat which obtained in the fall
or 1907, and I have no doubt this will be done. Other drawbacks
have been disappearing until there is left only the two mentioned and
we are in shape now to go ahead. There is getting to be a feeling
among the trade, though I do not know where it emanated, that the
reduction in the steel schedules in the new tariff is not going to be as
treat as some people have anticipated, and furthermore that the
usiness situation is going to be strong enough by the middle of the
year to overcome anything that might occur in this directif^"
4088 united states steel corporation.
February 8, 1909.
alliance with standard oil co. and the car companies.
Mr. BoPE. That we are getting more business than our compet-
itors I attribute to two or three causes: One, to the fact that we have
alliances with large concerns such as the bridge company, Standard
Oil Co., and the two car companies; another, that we have a very
effective sales organization which is doing more scientific work in the
matter of calUng on customers and canvassing the trade than ever
before, and whatever is to be had upon an equal basis we get. These
are the two principal causes. There is also a certain amount of busi-
ness coming to us on account of reciprocal relations, but this ques-
tion is coming more and more to cut the other way. Then there are
the questions of service and quality, which often get us tonnage on
anytmng hlte an equal basis. All these things combined tend to
give us a larger share than anybody else can get; nevertheless the
situation is far from satisfactory. There is not that cooperation
which existed a year ago. The job proposition is the cause of intense
dissatisfaction. Under the arrangement the jobbers, of course, get
an allowance on all material taken into stock, and the fact that
Ryerson has already, and Scully is getting ready to go into the fabricat-
ing business with this allowance back of them, which was not given
in contemplation of their going into this business, has started up the
Western fabricators and they are demanding now that these people
either stay out of fabricating or they be put upon an equal basis to
compete with them. The committee appointed to look into the
matter, after studying it very thoroughly, reported that the whole
situation is rapidly becoming impossible, and that some action
should be taken at once, not necessarhy along the lines which they
recommend, but whatever was thought best by the corporation.
Then on forgings, the miUs which are m this business are holding up
the price of billets and puUing down the price of finished forgings,
which is practically puttmg the independent forge makers out of the
market. And on shafting, Jones & Laughlin are selling at a price
which their competitors can not afford to meet after paying the mar-
ket price of $1.40 for bars. This is the condition now almost right
through the whole market. There is a little competition, too, by
pecuHar arrangements which are being made.
STATE OF KANSAS AND THE INTERNATIONAL HARVESTER CO.
For instance, the State of Kansas and the International Harves-
ter Co. have made an agreement whereby the State shall regulate
the prices at which the Harvester Co. can sell goods within its bor-
ders. To be fair, the State must put everybody on the same basis,
but it is an arrangement which, so far as I know, has never been
successful before.
UNITED STATES STEEL. OOEPOKATION. 4089
UNION STEEL CO, SUPPLEMENTAL AGREEMENT.
Agreement supplemental to agreement dated May 2, 1904, made
by and between Carnegie Steel Company, a corporation of New
Jersey, and Union Steel Company, a corporation of Pennsylvania.
It IS hereby mutually agreed to the parties to the aforesaid agree-
ment as follows:
First. That the said agreement of May 2, 1904, so far as it consti-
tutes a lease to Carnegie Steel Company, of the blast furnaces, open-
hearth furnaces, and all equipment connected therewith situated at
Donora, Washington County, Pennsylvania, and forming a part of
the Donora plant of Union Steel Company, be and hereby the same
is cancelled and set aside, and each party does release the other party,
from any and all claims or demands under said agreement, so far as
the same refers to the said Donora plant.
Second. Carnegie Steel Company agrees on or before the 2nd day
of November, 1908, to deliver possession of the above described de-
partments of the said Donora plant and aU equipment connected
therewith and used in the operation thereof to the Union Steel Com-
pany, and to pay to said Union Steel Company in cash, inventories
or other assets acceptable to Union Steel Company, the sum of
$361,292.16, in fuU discharge of all claims Union Steel Company has
against Carnegie Steel Company for working capital supplied by
Union Steel Company to Carnegie Steel Company in respect of
Donora plant at the date the same was leased to Carnegie Steel
Company, as per agreement of May 2, 1904.
Third. Carnegie Steel Company agrees to pay Union Steel Com-
pany on or before December 25, 1908, in cash, the expended balance
of November 2, 1908, of reserves for depreciation and contingent
liabilities, which Carnegie Steel Company may have reserved from the
operations of the aforesaid Donora plant in determining the net
rental due for said plant, in accordance with the agreement of May 2,
1904.
Fourth. Any balance due from Carnegie Steel Company to Union
Steel Company at November 2, 1908, or vice versa for net rental, or
advances for construction in respect of said Donora plant, shall, it is
agreed by the parties hereto, be paid in cash by the party in debt on
or before December 25, 1908.
Fifth. The Union Steel Company agrees to purchase from the
Carnegie Steel Company for cash, or to provide a purchaser for the
same, the inventory of manufacturing suppHes and -products of the
Carnegie Steel Company at said Donora plant on November 2, 1908,
in excess of the amount of such inventory, which may be delivered
by the Carnegie Steel Company to Union Steel Company in accord-
ance with section 2nd thereof, and Union Steel Company agrees that
payment for such excess amount of inventory shall be made to Car-
negie Steel Company on or before December 25, 1908, but all such
purchases of inventory to be made at cost values of the same to Car-
negie Steel Company.
Sixth. So far. as the said agreement of May 2nd, 1904, refers to the
Sharon plant, the personal property, inventories, and cash assets
relating to the same, the said agreement hereby is reaffirmed.
4090 U^HTED STATES STEEL COEPOBATIOls.
In witness whereof the said parties have hereunto caused their
corporate seals to be allixed by their presidents and attested by their
respective secretaries, this 5th day of January, 1909.
Union Steel Company,
By W. B. Dickson, President.
Attest :
W. J. Filbert, Secretary.
Carnegie Steel Company,
By A. C. Dinkey, President.
Attest :
W. W. Blackburn, Secretary.
February 22, 1909.
cooperation in prices BY' THE CORPORATION.
Mr. Bope. As a matter of record, it is in order to say, that during
the week the corporation decided to cut loose entirely from the poUcy
of cooperation, and prices to-day on aU products excepting standard
rails are absolutely open.
The first effect of this was to eliminate the jobbers, to whom we
have been giving a concession in price; it enables us to say to these
people that by the action taken, their contracts are practically
annulled. It throws open the field to salesmanship, and is to give
the corporation the opportunity, it seems to me, it has always been
entitled to, but has never taken, by reason of its size, the distribution
of its plants, and the value of its organization. It will allow us to play
the game as it ought to be played, to give the proper consideration to
the concerns which give us large tonnages, so that they with their
large investments may do business on a remunerative basis. The
small buyer will, of course, be treated fairly, but he is not entitled
to receive the same consideration as the very large buyer. Every-
body was stunned, at first, by the action. While it was generally
anticipated that some change in prices would be made, hardly any-
body expected that it would be such a complete change. The first
thing done by our competitors was to immediately set prices down
$6 per ton. They had their prices out last Tuesday night, but this
did no harm, because nobody would buy until they learned what the
corporation was going to do. Even in the two days which have elapsed
we have seen the return of some f amihar people we have not haa for
a long time, not because they did not want to buy from us, but sim-
ply because they knew that we had but one price and would not vary
from it, while other people were wilUng to do better. I beheve a
great many of our old big customers welcomed the change, because it
will enable them to come back to us again. They have always had
from us very liberal treatment, and they know they will get this in
the future. We have seen the representatives of the two car com-
ganies, and they are very happy over the situation. It has eliminated
ambria as a factor on the basis on which they have been talking
recently, and both the Pressed Steel and Standard people have gone
out now not only to make money for themselves but for us also. The
first order taken by us under the new conditions was that for the
shapes for the Government coUier awarded to Cramp, which were
being held up, and on anything Uke an even basis, I think pH of the
big snip buUdina: compames will do business with us.
united states steel coepoeation. 4091
March 1, 1909.
cooperative idea in selling prices.
Mr. BoPE. * * * A. ^eat many customers seem to have made
up their minds that our action is a bluff, that the cooperative idea is
still in existence, and that we have simply fixed prices at 1.20 cents
for bars and 1.30 cents for shapes and plates instead of 1.40 cents and
1.60 cents, but I think they wiU soon have a different idea on that
score and that tonnage will begin to come out.
March 8, 1909.
effect of prices upon independents.
Judge Reed. Are the independents getting much business ?
Mr. BoPE. They do not seem to be. Lackawanna, for instance,
is running worse just now than at any time since the panic. Mr.
Smith, our Buffalo agent, reported this morning they have lost several
of their good men by reason of a reduction in wages, and that they are
in rather a demorauzed condition. We find too, that some competi-
tors are very erratic. For example, Cambria took an order for 200
to 300 tons of forging blooms from the American Locomotive Works
on a basis which would net them only $22.70 at the mill. The loco-
motive people wanted 2,000 tons more at the same price, but Cambria
told them they would take no more except on a basis of $25 at their
mill, pluss full freight. They wanted to sound the market on this
small lot, and when they learned the situation, came right up to the
basis of the price we want. It is not desirable tonnage at $22.70,
there is no money in it for anybody. As a matter of fact, all the inde-
pendents would like to stick pretty close to the 1.20 cent and 1.30 cent
E rices, although in some cases we have found lower quotations. We
ave run into a price of 1.30 cent for plates and shapes delivered to
the King Bridge Co., Cleveland, on one specific job, and Mr. Albright,
of the Buffalo Bolt Co., who was here on Saturday, told us Lacka-
wanna quoted them 1.20 cent on bars dehvered at their works.
When we suggested that he had better close at this price, he said that
Lackawanna could not nearly take care of them, could give them
neither the finish or dehvery required, and he was willing to pay us
any price that we wanted. This is just an illustration of how the
market is centralizing around us, and I beUeve we are going to get the
full benefit of our position and our prices.
March 15, 1909.
effect upon independents of prices.
Mr. BoPE. Nearly everything placed in the past week was taken by
us, and the eastern mills are already feeling very keenly the effects of
the open market. Worth, accordmg to our advices, has taken off
two more furnaces, having in operation to-day only 4 out of 16, and
Lukens has only 3 ruiming out of 16.
31572— No. 53, pt. 2—12 23
4092 UNITED STATES STEEL COEPOKATION.
WESTERN FREIGHT EFFECT UPON BETHLEHEM CO.
Mr. BoPE. Bethlehem has akeady withdrawn from the West, be-
cause they can not meet Illinois prices on account of the freight.
March 22, 1909.
j. p. morgan & co. financing proposition from argentine
republic.
Mr. BoPE. One inquiry is from Argentine Republic for 34,000 tons,
and, as J. P. Morgan & Co. are financmg the proposition, this tonnage
will undoubtedly come to us.
April 19, 1909.
tariff legislation.
Mr. BoPE. We know what the worst will be with regard to the
tariff. Any changes that are made are Ukely to be for the better.
June 7, 1909.
aldrich bill.
Mr. BoPE. I found in discussing matters with various people during
the week that one unsettling condition is the action of the Senate in
pushing through the Aldrich bill, because the people have been
expectmg some reasonable reductions. The so-called reformers
undoubtedly have had the best of the argument right along, but the
supporters of the bill have had the strength to go right ahead, and
they have done so regardless of protest, and this is begmning to leave
a sort of bad taste in the mouth of the people. Wliile no changes
could be made in the bill if put through in its present shape for prac-
tically three years, it is felt that if this is done and the Democrats
have a majority next year, they will make a start for revising the
tariff again. All that is wanted is such reductions as will keep the
question of the tariff out of the way for several years, because it is
believed that once we get fairly started in this buying movement it
is going to last several years, and we do not want such influence as
another revision of the tariff to come up during this time.
June 8, 1909.
sale of ginning-mill stocks.
Mr. McCausland. We have held for a number of years 675 shares
of the stock of 18 small ginning mills in the South, which were ac-
quired upon the recommendation of the sales department. We paid
for this stock $19,050, but it was charged down some time ago to
$8,651.25, and this is the value at which it is now being carried on our
books. The par value of the stock of three of the companies is $100
per share and of all of the others $25 a share; but Mr. Hanson, of the
Atlantic Compress Co., the principal interest in this matter, advises
that we can not get on an average more than 30 to 40 cents on the
dollar. It is desired now to sell the smaller companies to the larger
ones, and they have asked us to join in the sale of the securities, and
under the circumstances I would recommend that we dispose of them.
UNITED STATES STEEL OOEPOEATION. 4093
Mr. BoPE. These are stocks of the companies which fayored square
bales for cotton and used our cotton ties exclusively, and they
were taken with a view to helping them along. When they were
acquired we did not expect that we would realize anything on them,
and, as the purpose for which they were taken has now been accom-
plished, as evidenced by the fact that the shipments of cotton ties
this year amount to about 2,500,000 bundles, we may as well sell
them. I would offer a resolution, therefore, that the treasurer of this
company be, and hereby he is, authorized, subject to the approval of
the finance committee of the corporation, to dispose of all of these
stocks at the best price to be obtained.
This resolution was seconded by Mr. Blackburn and carried unani-
mously.
September 6, 1909.
addition to sales reports of pig iron and scrap due constitu-
ent companies.
Mr. BoPE. Mr. Filbert has asked that we put in the report the
pig iron and scrap due constituent companies which we have never
carried before, as an obligation, and this accounts for the big gain
shown in obligations to constituent companies.
EFFECT OF NEW TARIFF.
Mr. BopE. * * * I do not beHeve the European manufacturers
have yet figured out the advantage they have under the new tarifT,
but we have already made up our minds that we wUl have to surrender
the Pacific coast entirely to foreign material; and along the Atlantic
coast, take New Orleans for example, or any other point where ma-
terial can be imported easily, and we will be compelled to meet the
price if we want the business, and this will require very careful wateh-
mg. Of course the European mills are just as busy as we are here at
present, and there is no question of our being able to maintain our
prices for a period of time. I think the advances we have asked for
will be satisfactory to the trade, and at these prices we will be able
to control the foreign competition pretty well, out I doubt if we can
go very much higher except for a short period or so. As a matter of
fact, we could make this a runaway market if we desired to do so,
but this would stop the buying movement quicker than if the situa-
tion is handled conservatively.
September 20, 1909.
competitors following lead op company.
Mr. BoPE. * * * We will have to divide the tonnage and tell
certain people we can give them only so much, and they must look
elsewhere for the rest. The effect of this possibly will be to raise
prices. But our competitors are just as busy as we are and sold just
as far ahead, and they are following ovr lead in not making contracts
beyond April 1.
4094 unitkd states steel coepoeation.
October 11, 1909.
account of tonnage.
Mr. BoPE. * * * Under the old system a good deal of our ton-
nage naturally was fictitious, because we were willing to take people
on for anything they wanted, and any delivery, as there was not
much likelihood of a change of prices, but after the market broke we
cut out everything that was not absolutely business, and what is on
the books to-day we can count on practically to the ton.
MEETING OF PEESIDENTS — AS TO PRICES.
Mr. BoPE. * * * As to prices, at a meeting of presidents last
week, they came to the conclusion that to-day's rates are as high as
they should go for the present at least. There are two or three reasons
for this: One is the fear of foreign competition. As I said last week
we are now on a basis higher than steel can be imported into this
country, and this feature must be watched very carefully.
October 25, 1909.
contracts with customers — action of competitors.
Mr. BoPE. *' * * We must, however, take care of customers
and I have now authorized our people to make contracts up to July 1.
We find our competitors doing this, although I am glad to say they
are showing a very conservative attitude. Everybody is afraid it
might develop into a runaway market, and are .doing everything they
can to hold it down, yet some are asking to-day 1.60 cents for struc-
tural and plates, and 1.50 cents for bars. The situation may be helped
to some extent by the fact that pig iron and scrap can be imported
under the new tariff much more cheaply than formerly, which will
affect the scrap dealers, who have been accumulating large quantities
and holding it for a high price. There is a shipment of 35,000 tons
en route now from Middleooro, Philadelphia, the freight from Liver-
pool being $1.22 per ton. The eastern people will likely import con-
siderable pig iron, and will be able to run on lower costs so they will not
be forced to ask such high prices as in the past in order to make a profit.
WINTHROP IRON MINING CO. AND CHAPIN MINING CO.'SOLD TO
MINNESOTA IRON CO.
Sale of stock of Winthrop Iron Mining Co. and Chapin Mining Co.,
owned by this company, to the Minnesota Iron Co., and the accept-
ance in payment therefor of promissory notes of the Pittsburgh Steam-
ship Co., and the increase in capital stock of Pittsburgh Steamship Co.,
and the purchase of said increased capital stock by such notes, was
requested by Mr. Filbert.
The Pittsburgh Steamship Co. capital stock was increased to
$7,880,000, and the additional stock issue of $6,550,000 was bought by
the Carnegie Co. for $6,550,000 of promissory notes of the Pittsburgn
Steamship Co., aggregating $6,550,000.
united states steel coepoeation. 4095
Februaey 21, 1910.
united states supreme court decision.
Mr. BopE. There also seems to be an intangible feeling that what-
ever decision the Supreme Court renders in the Standard Oil and
Tobacco cases the court will open out a way whereby the effect will
not be so severe as a blunt decision would.
April 4, 1910.
freight rates lower to company.
Mr. Morrison. If we were to make our price 1.50 cents, would not
the other people go lower ?
Mr. BoPE. They could not do so in the West, because they have a
higher freight rate than we have, and in the East we would simply
have to meet them. I would like to have the price situation consid-
ered because it is an important one. All of our agents will be herp
this week and I want to map out a pohcy for them.
April 18, 1910.
monthly REPORTS OF NEW COMPETITION SUBMITTED TO THE COMPANY.
Mr. BoPE. Another item of interest is that in going over last week
the report we submit to the corporation each month of new competi-
tion, both that which is actually under way and which is rumored, I
was very much surprised to see that it took up 10 pages, which in-
cludes everything from a little train of rails to a complete plant, and
the tonnage, if it were all to come in, which of course will not be the
case, would run into millions of tons, all open hearth.
•November 7, 1910.
Mr. BoPE. * * * YoT instance, Mr. Beegle, of the Union
Drawn Steel Co., is coming in this week to see us and he teUs that
certain contracts which he has have been unsettled by the Steel &
Wire Co. and Jones & Laughlin quoting customers a lower price than
his contracts called for.
December 29, 1910.
warehouses on the pacific coast — differential to jobbers.
Mr. BoPE. * * * By having two warehouses on the coast, which
we would have to handle as mUls, with prices just enough above the
market, including freight, to meet the situation, and if necessary
t lying some of the larger jobbers a httle differential and letting them
raw on these warehouses instead of carrying their own stocks, and
also carrying the products of the constituent companies, I think we
could easily figure with these boats of doing a business of 100,000 tons
a year on the coast. The matter has appealed to me very strongly
because it is perfectly reasonable. It would afford an outlet for a
good deal of our own material, which would make up at least a part
of the tonnage taken from us by Gary, as well as again give us control
of the Pacific coast situation * * *.
4096 UNITED STATES STEEL COKPOBATION.
I have asked Mr. Dinkey, who is a member of the president's com-
mittee on warehouses, to let me send somebody to the coast right
away to go over the matter thoroughly as to the best locations for
these warehouses, etc., and make fuU report.
January 3, 1911.
competitors.
Mr. BoPE. * * * Byt -f^YQ ^Q fijid tiiat some of our competitors
are getting a httle results and are adopting various plans to get busi-
ness. For instance, some of them are wuling now to surrender the
right to route material, which is sometliing we have always insisted
should be left with us.
IVIarch 20, 1911.
weakness of competitors.
Mr. BoPE. * * * The weakness of some of our competitors is
evidenced by the fact that one of them not long ago came into this
market and booked quite a good sheet bar tonnage, but now nearly
all of those people are coming back to us saying they are not satis-
fied and want to get under contract again with us. We have taken
some of this business without being too aggressive. As a matter
of fact, the more I think of our general policy the more I think it is
going to work out advantageously to us, and it is almost literally true
that in the periods when the demand is not equal to the production
with our organization the other people have to cut under our price
a little to get the business. This is not done in the base price, but a
little inching under in extras and things of that sort.
March 27, 1911.
Sales to West Australian Government from Steel Products Co.
April 3, 1911.
Awarded Quebec Bridge contract and emergency dams involving
ton to twelve thousand tons.
STANDARD OIL CO., CONTRACT WITH.
Contract with Standard Oil Co. mentioned by Mr. Bope.
May 29, 1911.
Jones & Laughlin were compelled to put out an additional issue of
$10,000,000 more bonds, and they have iised the first issue of
$1.5,000,000, according to Mr. Bopo.
July 3, 1911.
j. b. & j. m. cornell account.
On motion of Mr. Blackburn, seconded by Mr. Bope, the following
resolution was unanimously adopted:
Whereas the J. B. & J. M. Cornell Co. is indehted to this company for materialg
sold and delivered in the sum of $50,880.64, secured by 80 bonds of said J. B. & J. M.
Cornell Co. of the par value of $1,000 each; and
UNITED STATES STEEL. OOEPOBATION. 4097
Whereas said company has entered into a certain agreement, dated April 24, 19H,
between the New York Trust Co., Sarah K. Cornell, the bondholders of J. B. & J. M.
Cornell Co., and certain creditors of the receivers of that company, having for its
purpose the reorganization of said J. B. & J. M. Cornell Co.; and
Whereas it is advisable that this company appoint an attorney in fact to do such
thiags as may be necessary for and on behaU of this company to carry out the terms
and provisions of said agreement: Now therefore be it
Resolved, That Frederick J. Home, vice president of the New York Trust Co., be,
and hereby is, appointed attorney in fact of this company for it and in its name —
(1) To assign to Cornell Construction Co., under the provisions of said agreement
dated April 24, 1911, all the right, title, and interest of this company in and to a certain
bid dated April 24, 1911, made by the bondholders of the J. B. & J. M. Cornell Co. to
the receivers of said company.
(2) To assign to said Cornell Construction Co., subject to the terms and conditions
of said bid, all the right, tifle, and interest of this company in and to said 80 bonds of
the J. B. & J. M. Cornell Co.
(3) To receive from said Cornell Construction Co. the shares of its capital stock to
which this company is entitled.
(4) To execute the voting trust agreement provided for in said agreement of April
24, 1911, and to transfer anoT deliver to the trustee thereunder said shares of stock and
to receive and transmit to this company the receipts therefor.
And the president is hereby authorized, for and m behalf of the company, to execute
a proper form of power of attorney to the said Frederick J. Home, authorizing him to
do and perform all things above mentioned.
ITALIAN GOVERNMENT.
Bids to Italian Government for armor plate provided for by
power of attorney to Mr. Balsinger.
July 10, 1911.
International Harvester Co. contract referred to.
July 24, 1911.
Mingo Coal Co. owned by Carnegie Co.
The minutes of the last meeting examiaed were those of July 31,
1911.
THE CAENEGIE CO.
(A New Jersey corporation.)
Minutes of Meetings of Stockholdees and Board of Directors
AS Extracted, from March 27, 1900, to March 25, 1903.
Note. — There were three Carnegie companies, as foUowfi:
1. Carnegie Steel Co. (a corporation of Pennsylvania), which waa chartered May
22, 1899, and succeeded the old limited partnership, and be^in business April 1, 1900,
which was an operating company, until leased to tiie Carnegie Steel Co. (a corporation
of New Jersey).
2. The Carnegie Co. (a corporation of New Jersey), which was chartered March 24,
1900, and began business April 1, 1900. This company held the stock of the Carnegie
Steel Co. — the Pennsylvania corporation — together with the stocks of various other
companies, and the stock of this company was purchased by the United Steel Corpora-
tion.
3. Carnegie Steel Co. (a corporation of New Jersey) was organized about March 26,
1903, by the merger of the Carnegie Co., National Steel Co., and American Steel Hoop
Co.
Carnegie Steel Co. (the Pennsylvania corporation) was leased under an operating
contract to the Camepe Steel Co. (the New Jersey corporation formed by the merger
of the Carnegie Co., National Steel Co., and American Steel Hoop Co.) on or about
December 26, 1905.
March 27, 1900.
First meeting of incorporators.
The following incorporators were present by proxy issued to John
S. Parker: Andrew Carnegie, 86,379 shares; George E. McCague, 442
shares; Charles W. Baker, 147 shares; Albert C. Case, 147 shares; and
various other stockholders by proxy issued to George W. Mark.
Resolved, That whereas Charles M. Schwab, Andrew M. Moreland, F. T. F. Love-
joy, and Gibson D. Packer, as a committee acting on behalf of the several owners
and holders thereof, have offered to sell and transfer or cause to be transferred to thia
company shares of capital stock of the following corporations: 500,000 shares of Carnegie
Steel Co., of Pennsylvania, being the entire capital stock of said company; 200,000
shares of H. C. Frick Coke Co., being the entire capital stock of said company; 6,000
shares of Carnegie Natural Gas Co., a corporation of the State of Pennsylvania,
being the entire capital stock of said company; 40,000 shares of Union BaUroad Co., of
Pennsylvania, being the entire capital stock of said company; 8,000 shares of Youghio-
gheny Northern Railway Co., being the entire capital stock of said company; 100
shares of the Slackwater Coimecting Railroad Co., being the entire capital stock of
said company; 100,010 shares of the common stock and 22,162 shares of the preferred
stock of the Pittsburgh, Bessemer & Lake Erie Railroad Co., of Pennsylvjinia, being
50.005 per cent of the entire capital stock of said company, plus 2,160 shares of the
preferred stock; 10,000 shares of Oliver Iron Mining Co., of Minnesota, being five-
sixths of the entire capital stock of said company; 4,000 shares of the Pewabic Co., of
Wisconsin, being one-half of the entire capital stock of said company; 416S shares of
the Pittsburgh Steamship Co., of West Virginia, being five-sixths of the entire capital
stock of said company; 1,000 shares of the Pittsburgh & Conneaut Dock Co., West Vir-
ginia, being the entire capital stock of said company; $45,000 of the capital stock of
the Pittsburgh Limestone Co. (Ltd.), a limited partnership of the State Of Pennsyl-
vania, being three-fourths of the entire capital stock of the said limited partnerehip;
20 shares of the Mingo Coal Co., a corporation of Pennsylvania, being the entire capitel
stock of said company; 1,000 shares of the Youghiogheny Water Co., Pennsylvania,
being the entire capital stock of said company; 3,000 shares of the Mount Pleasant
Water Co., of Pennsylvania, being the entire capital stock of said company; 5,000
shares of the Trotter Water Co., a corporation of the State of Pennsylvania, being the
4098
UNITED STATES STEEL COEPOEATION. 4099
entire capital stock of said company; $75,000 of the capital stock of the Union Supply
Co- (Ltd.), a limited partnership of Pennsylvania, being the entire capital stock of
said limited partnership, in consideration of the issue of stock of this company to the
amount of $160,000,000 par value and its 5 per cent bonds, secured by a collateral
deed of trust or mortgage upon all of the above-mentioned stocks, amounting in the
affiregate to $160,000,000; and
Whereas it appears to the stockholders that the above-mentioned property is neces-
sary for the businesss of this company and that the same is of the value of $320,000,000:
Resolved, That the board of directors of this company be, and they hereby, are author-
ized and directed to purchase said property^ for said price and to issue said stock and
bonds in payment thereof: Provided, That ia the judgment of the board of directors
the said property is of the value above stated; further
Resolved, That the board of directors- of this company be, and they are hereby, also
authorized and directed to accept said property in full payment of the subscriptions
of the incorporators, as set forth m the certificate of incorporation.
March 27, 1900.
First meeting of the board of directors.
The present directors had been elected: Henry Phipps, James
Gayley, William H. Singer, Andrew M. Moreland, James N. DIU,
George Lauder, Charles M. Schwab, Daniel M. Clemson, Thomas
Morrison, Thomas Lynch, Lawrence C. Phipps.
The following officers had been elected: C. M. Schwab, president;
Lawrence C. Phipps, vice president; Andrew M. Moreland, secretary;
William W. Blackburn, treasurer; James N. Dill, general counsel.
Kesolution that in the judgment of the board of directors the
Eroperty (in the list above set forth in the stockholders meeting of
[arch 27, 1900), is and will be for the Carnegie Co. for the purpose of
its business of the value and full par value of the stock of $160,000,000
and bonds $160,000,000 to be issued therefor, amounting in all to
$320,000,000.
Resolution that the proposition be accepted passed; and
Resolution that the stock and bonds to be issued therefor, the bonds
to bear interest of 5 per cent.
April 23, 1900.
historical interest only.
Board of directors' meeting.
The question of selling the Keystone Bridge Works to the American
Bridge Co. was considered.
M. L. C. Phipps. Nearly everyone present, I think, understands the
E reposition of selling the Keystone Bridge Works to the American
Iridge Co., as the matter has been up for quite a long time. The
board of directors of the Carnegie Steel Co. has approved of the selling
of the Keystone Bridge Works, and it is desired that this board con-
sider the matter also. I think it would be well to incorporate in our
minutes the proposition made by the promoter, Mr. Ladd, under date
of April 2, 1900, which is as follows, to wit:
Replying to your favor of the 30th ultimo would say that I think the assumption that
the bridge matter is now practically a go is warranted, provided of coxirse that the
various elements materialize on the lines respectively represented to Messrs. J. P.
It is proposed that the total authorized capitalization of the new company be
$70 000 000 the company to be incorporated under the laws of New Jersey, and its
capitalization divided into 800,000 shares of the par value of $100 each, of which
$35 000 000 shall be 7 per cent cumulative preferred stock (with preference as to
dividends and assets), and $35,000,000 shall be common stock, said stock being taken
4100 UNITED STATES STEEL COBPOEATION.
at the rate of one share of preferred stock and one-half share of common stock as the
equivalent of $100 in cash. Of the total authorized capital, only about $60,000,000
will be actually issued at the present time, i. e., $30,000,000 each of preferred and
common stock.
The $30,000,000 preferred stock issued shall represent the plant values as arrived at
by audit and appraisal, and $10,000,000 cash working capital. Of the $30,000,000
common stock, one-half, or $15,000,000 will go with the $30,000,000 of preferred and
the other half, or $15,000,000, wiU go to J. P. Morgan & Co. as commission, and which
they are to use for the purpose of forming their syndicate for themselves and to indem-
nify me for my efforts. The commission thus figures, as previously explained to you,
an amount of common stock which shall equal 25 per cent of the total capitalization
actually issued, but there is no commission whatever paid in preferred stock.
As previously arranged with you, and as represented by Mr. Morgan, the bridge
company has to take over the Keystone Bridge Works, plant and real estate, paying
therefor in lieu of cash $2,000,000 of its preferred stock, and $1,000,000 of its common
stock, the Carnegie Co. agreeing, in common with other manufacturers, to hold such
stock for a period of 18 months, and accepting during such period certificates of receipt
or deposit from J. P. Morgan & Co. or the Standard Trust Co. And the Carnegie Co.
is to be represented on the board of directors of the bridge company.
Simultaneously with the purchase of the Keystone plant, by the bridge company,
the Carnegie Co. and the bridge company are to execute an agreement for purchase
and sale of materials equaling an amount at least 51 per cent of the total amount of
such materials used by the bridge company, and the purchase of which materials the
bridge company is to enjoy from the Carnegie Co. at terms or rates more advantageous
than the terms or rates at which the Carnegie Co. would sell simUar materials to any
other customer.
The customer also agreed not to fabricate such materials, during the life of such
agreement, which is to be for the period of at least 10 years. Such agreement is to
further cover such points as may be deemed to accrue to the mutual advantage and
satisfaction of the Carnegie Co. and the bridge company.
Simultaneously with the sale of the Keystone plant to the bridge company and the
receipt by the Carnegie Co. therefor of the $2,000,000 preferred and the $1,000,000 com-
mon stock above mentioned, a properly drawn agreement for the purchase and sale
of $1,500,000 of such preferred and $750,000 of such common stock is to be executed
by and between the Carnegie Co. and Messrs. W. H. McCord, C. M. Jarvis, Frank
Conger, and J. G. Ladd. Such stock to be taken and paid for within 30 days from
the date the actual shares of stock are delivered to the Carnegie Co., i. e., within 30
days after the expiration of the time during which the Carnegie Co. held J. P. Morgan
& Co.'s certificates of deposit above referred to. The price to be for the said stock
by Messrs. McCord, Jarvis, and Ladd be the sum of $1,500,000 cash, such parties
depositing with the Carnegie Co., or other mutually agreed upon depository, as collateral
security for the performance of their agreement, the certificate of deposit representing
a total of $750,000 par value of the common stock, and a total of $675,000 of the pre-
ferred stock of the bridge company, such certificates being properly signed in blank.
I trust that the above recapitulation of the assets as generally arranged with you
will prove what you want at this time.
As the bridge matter must be consummated during this month, and preferably as
early in the month as possible, and the bankers will want the Carnegie Co. s agreement
and transfer of the Keystone's plant completed about the first thing that is done, I desire
to ask you to kindly secure such authorization as you may deem it necessary to secure,
at the earliest possible date. In this connection may I suggest that you simply secure
from yoiu- board of directors, whb also undoubtedly represent a sufficient amount of
stock necessary to confirm such action, when such confirmation is needed, full author-
ization to carry out and perfect the negotiations and agreements herein generally
described?
Trusting that you will kindly advise me how soon you can be ready to put these
matters into definite shape, I remain, etc.
There is really nothing to add to the above proposition. I think
that everyone understands it. Mr. Carnegie is favorable to selling
the bridge works on the basis of the proposition as read, and the board
of directors of the Carnegie Steel Co. have approved.
Mr. Lynch. I am lamiMar with the details of this matter to an
extent that I would exactly understand the effect of selling the
Keystone Bridge Works. I rather favor the company retaining this
department. If the matter has been carefully gone over by the other
UNITED STATES STEEL CORPOEATION. 4101
members of this board and the steel-company board has approved of
the sale and transfer of the property, then I would vote for it.
Mr. Schwab. The proposition has been considered very carefully.
Mr. Carnegie approves, also Mr. Henry Phipps. It is our opinion
that we are getting a very good price for Keystone, and the contract
which we are to make, giving us 50 per cent of the steel to be pur-
chased by the consolidated company, will prove to be a very beneficial
thing for us. If the bridge company does not take 75 per cent of the
bridge works in the United States, we are then privileged to build
a works of our own. If we continued in the bridge business we would
most certainly have to rebuild the Keystone.
On motion of Messrs. Lynch and Morrison, it was
Resolved, That the board of directors of this company approve of the action of the
board of directors of the Carnegie Steel Co. in agreeing to sell the Keystone Bridge
Works to the American Bridge Co., the consideration being $2,000,000 preferred stoqk
and $1,000,000 of the common stock of said bridge company, as more fully set forth in
the minutes of the meetings of the board of directors of the Carnegie Steel Co. held
April 9 and April 17, 1900, and any agreements between the Carnegie Steel Co. and the
American Bridge Co., the vote being unanimous.
Mr. L. C. Phipps presented the following resolution:
Resolved, That this company sell to the Carnegie Steel Co. 12,160 shares of the pre-
ferred stock of the Pittsburgh, Bessemer & Lake Erie Railroad Co. at the par value of
$50 per share, or $608,000, and purchase from the Carnegie Steel Co. 10,000 of the com-
mon stock of the Pittsburgh, Bessemer & Lake Erie Co. at $25, or $250,000.
Mr. L. C. Phipps. I would explain the idea of the exchange of these
securities. We have some very large credit balances in the Carnegie
Steel Co. in the accounts of Messrs. Andrew Carnegie, Henry Phipps,
George Lauder, and WiUiam H. Singer, which we would prefer to
pay at least partially' in securities rather than in cash, and the gentle-
men named have given their assent to this agreement. During the
month of April the Carnegie Steel Co. purchased 10,000 shares of the
common stock of the Pittsburgh, Bessemer & Lake Erie Railroad
Co. from Col. Samuel B. Dick, in a settlement made with him, and we
now think it is wise for this company to purchase these shares. This
company owns 22,162 shares of the preferred stock of the Pittsburgh,
Bessemer & Lake Erie Railroad Co., and it is intended to sell 12,160
shares to the Carnegie Steel Co., which last-named company will use
for the purpose of paying the credit partners of the Carnegie Steel Co.
(Ltd.), whose accounts were transferred March 31 to the Carnegie
Steel Co., as above outlined. This company owns, after above
exchange of stock, the control of the Bessemer road, as far as voting
power is concerned.
On motion the above resolution was unanimously adopted.
June 6, 1900.
Board of directors' meeting.
Mr. Gayley. Last week at an informal meeting we discussed the
matter of making a contract between the Federal Steel Co., the Car-
negie Co., and the Oliver & Snyder Steel Co. respecting the contract
for a freight rate on Duluth & Iron Range Railroad on ore from the
Vermillion Range. There are some very good reasons against the
making of a contract between the Oliver Iron Mining Co. and the
railroad company, and the suggestion has been made in order to
avoid the appearance of rebating freight that we make contract
between the two New Jersey companies, Carnegie and Federal, the
4102 UNITED STATES STEEL CORPORATION.
consideration being for the business that the Carnegie Co. controls and
has to give out and that the railroad company is desirous of securing.
We intend to define the Vermillion Range in the contract so that the
same wiU not cover territory in general or other acquisitions we may
make from time to time in other territories or localities. Objections
were had to the first draft of the contract at the meeting last week,
first, because it contained a clause guaranteeing the railroad company
600,000 tons of ore per year, and, secondly, on account of the term of
the contract being 20 years. Since the meeting last week we have
considered the matter very carefuUy and we are now convinced that
a long-time contract is the best for us, and we would propose that
instead of 10 years, as proposed last week, that we would negotiate
for 40-year term, there being no guarantee of tonnage; we give the
railroad protection at whatever it happens to be. The contract now
provides that we are to get as low a rate as any other company, and
if the rates are increased to others, the allowance to us is increased,
so that under the contract if rates were generally increased we would
be charged 60 cents at all times, unless a competitive road made a
lower rate, then we would pay on the same basis. We think that in
making a long-term contract that should we have any adjustments
to make with the company that they would be more likely to consider
what we might ask on account of the term of contract, rather thap
if it was for a short term, and they were looking toward its possible
ending or of our building a competitive road. We have in accordance
with our estimate at least ore enough in the Vermillion district for
a 20-year supply. The present general freight rate is 11. We have
had an arrangement with the railroad for some time to carry ore at
the rate of 60 cents, paying currently, however, $1 per ton, but we
have not been able to collect our money for the reason that there was
no fixed method of payment and the railroad fear,ed rebating. Judge
Gary thinks that if we make a contract as now proposed, they can
find a way to pay us the amount due us, which approximates 1200,000,
and make the further payments or rebates required. Mr. OHver and
myself are to take this matter up in New York next week, and we
would Hke to have authority to negotiate on the lines recited.
On motion of Messrs. Clemson and Lynch, it was
Resolved, That Mr. Henry W. Oliver and Mr. James Gayley are hereby authorized
and empowered to negotiate with the Federal Steel Co. to the end of making a contract
covering ore shipped from the Vermillion iron-ore ranges, which the contract advo-
cates and which is to be carried over the Duluth & Iron Range Railroad at a net rate
of 60 cents for the term of 40 years, this authority being given on the express under-
standing that when the contract is written completely that it is to come before the
board of directors of this company for approval before it is executed by the officers of
this company, the authority for its execution by the officers of this company to be
given by the board of directors; the vote being unanimous.
Mr. Schwab. I think it very important that this contract be
approved by the board before it is executed and delivered.
(Copy to A. C, Skibo, and H. P., London, June 8, 1900.)
united states steel coepoeation. 4103
July 9, 1900.
Board of directors' meeting.
KEBATING AGREEMENT FOR CARRYING OREGON VERMILLION RANGE.
This agreement made this 9th day of July, A. D. 1900, between the Carnegie Co.,
a corporation of the State of New Jersey, and the owner of five-sixths of the capital
stock of the Oliver Iron Mining Co., and the Oliver & Snyder Steel Co., a corporation
of the State of Pennsylvania, and the owner of one-sixth of the capital stock of said
Oliver Iron Mining Co., parties of the first part, and the Federal Steel Co., a corpora-
tion of the State of New Jersey, party of the second part, witnesseth:
Whereas the said Oliver Iron Mining Go. and the party of the first part are the owners
of or interested in certain mining property located on the Vermillion Range and in
St. Louis County, Minn., on the mam line of the Duluth & Iron Range Railroad
between Two Harbors and Tower, to wit:
The Pioneer mine, the Zenith mine, the Savoy mine, and the Sibley mine, and other
mining properties not herein named, and may become the owners of or interested in
other mining properties on the Vermilion Range and in St. Louis County, Minn.,
on the main line of the Duluth & Iron Range Railroad between Two Harbors and
Tower and are desirous of having all iron ore that may be mined from all such proper-
ties or any of them transported therefrom to Lake Superior, and are also desirous
that the party of the second part shall secure and guarantee to the parties of the first
part prompt and efficient carriage and delivery of such ore;
Now, therefore, in consideration of the premises and of»other valuable considerations
it is agreed by and between the parties hereto as follows:
First. The said parties of the first part hereby promise and agree to deliver to such
railroad or railroads connecting with the mining properties above referred to as may
be designated by the party of the second part, for transportation and delivery from
any and all such mining properties to a suitable shipping port, on Lake Superior, all
iron ore mined and shipped by the parties of the first part, or any of them, or by any
company or companies which they or any of them may control or have a majority
interest in from all or any of such mining properties now owned or that may thereafter
be acquired by them or any of them in their interest, located on the Vermilion Range
and in St. Louis County, Minn., of the main line of the Duluth & Iron Range Railroad
and between Two Harbors and Tower for a period of 40 years from January 1, A. D.
1900, and to pay such railroad a tariff rate therefor, and to grant to the second party or
the railroad designated by it the necessary right of way to make and maintain such
connection over said property of the first parties.
Second. Said party of the second part further agrees that it will and it does hereby
guarantee to the parties of the first part that the raUroad company designated by said
first parties will at all times promptly and efficiently transport and deliver all the said
iron ore so delivered to it for transportation as aforesaid unless hindered or delayed
by strikes, destruction of its property by fire or the elements, or other unavertible
accidents, or failing in this respect, this agreement may be terminated.
Third. Said party of the second part in consideration of the premises and of the
agreement by the parties of the first part to permit the party of the second part to
route from time to time the said iron ore as above specified, does hereby promise and
agree to pay to the parties of the first part for each and every gross ton of iron ore
transported over the said railroad, designated as aforesaid, while the tariff rate on
such ore for such transportation remains at $1 (one dollar) per gross ton, the following
sums: . , . ^ , ^
When the quantity shipped in any three-year penod, commencing January 1, A. D.
1900, shall be 1,500,000 tons or more, 40 cents per gross ton.
When the quantity shipped in any three-year period commencing January 1, A. D.
1900, shall be less than 1,500,000 tons, 35 cents per gross ton: Provided, That if during
any 'period of three years there shall be shipped any quantity of ore in excess of
1,500 000 tons for the purpose of determining the said payment of 35 or 40 cents per
ton such excess shall be divided over and added to the shipments of any subsequent
three-year period. .,, . ^, • j ^,_ ■ , ^
In case the tariff rate is reduced at any time within the period this contract remains
in force then the amounts per gross ton to be paid by the party of the second part to
the parties of the first part under this clause shall be reduced the same amount per
gross ton that the tariff rate is so reduced; and if the tariff rate is increased at any
time or from time to time during the period this contract remains in force, then the
amount per gross ton to be paid by the party of the second part to the parties of the
4104 UNITED STATES STEEL CORPORATION.
first part under this clause shall be increased the same amount per gross ton that the
tarifi rate is so increased.
From the sums to be paid by the party of the second part to the parties of the first
part under this agreement there shall be deducted and retained by the said party of
the second part IJ per cent.
This last-mentioned percentage may be changed from time to time by mutual
agreement.
Fourth. On the 20th days of January, April, July, and October in each year pay-
ments of the amount per ton to be made by the party of the second part hereinbefore
stated shall be made on all the ore shipped during die preceding quarter, five-sixths
to the said Carnegie Co. and one-sixth to the said Oliver <fe Snyder Steel Co.
Payments shall be made on the assumption that the shipments for any three-year
period will aggregate 1,500,000 tons. If at the end of any three-year period the ship-
nients (after having had added to and considered as a part of that period any excess
shipments of a former period as hereinbefore provided) shall not amount to 1,500,000
tons, the overpayment of 5 cents per ton shall be refunded by the parties of the first
part to the party of the secpnd part.
Fifth. It is hereby understood and agreed that the term "Vermilion Range'' shall
not include any land south of the north line of Township 59 north which shall be west
of the said main line of the railroad.
In witness whereof, the parties hereto have caused these presents to be signed by their
respective presidents and their corporate seals to be hereto affixed the day and year
above written.
Mr. Schwab. Wliat did you estimate the shipments would be from
the Vermilion Range ?
Mr. Gay^ey. Minimum of 800,000 tons for the season, but ship-
ments this season will be 700,000 tons; we have only one shaft on the
Pioneer and can not mine more than 450,000 tons, and the other mines
are just being opened up.
Mr. Schwab. Can a tariff rate be named to any one that would oper-
ate to our disadvantage ?
Mr. Gayley. Not unless the open tariff rate goes below 60 cents.
When the tariff rate goes below $1, the amount of our rebate is reduced
the same amount, and when the tariff rate is increased our rebate is
increased in like amount.
Mr. Schwab. This agreement really fixes the rate at 60 cents
per ton, no matter what the tariff rate may be; on the basis of $1
tariff rate would mean a rebate of about $200,000 on last year's busi-
ness; I think the agreement is all right.
Mr. Gayley. So do I. The $200,000 gives five-sixths to the Car-
negie Co., and one-sixth to the Oliver & Snyder Steel Co.; that was
the only basis on which we could get the matter fixed, the Federal
Steel Co. and the Carnegie Co. both being New Jersey corporations.
The Carnegie Steel Co. pays |1 per ton ore freight currently, and the
Carnegie Co. gets the rebate quarterly.
The following resolution was presented and read:
Resolved, That Charles M. Schwab as president and Andrew M.
Moreland as secretary of this company are hereby authorized, di-
rected, and empowered to execute on behalf of this company a con-
tract dated July 9, 1900, between the Carnegie Co. and the Oliver &
Snyder Steel Co., parties of the first part, and the Federal Steel Co.,
party of the second part, providing for the transportation of iron ore
mined by the Oliver Iron Mining Co. on the Vermilion Range from
the mines to ports on Lake Superior.
On motion of Mr. Clemson, seconded by Mr. Gayley, the above reso-
lution was unanimously adopted.
united states steel coepokation. 4105
October 4, 1900.
Board of directors' meeting.
EESOLXJTION AS TO LAYING ASIDE SURPLUS UNDER NEW JERSEY LAW.
_Mr. Dill. The statutes of New Jersey prescribe that you must
divide all your surplus property as dividends, unless it be laid aside
by the directors as surplus, which prevents any dissenting stock-
holder from going into court and maldng trouble. It is usual, there-
fore, to pass a resolution of this character in connection with any dis-
bursements. If the board desires I wiU prepare such a resolution and
forward it for action.
The president instructed Mr. DiU to prepare the resolution in
proper form and forward it to the secretary to be submitted at the
next meeting.
November 6, 1900.
Board of directors' meeting.
LOAN TO CORRIGAN, m'kINNEY & CO.
Mr. Gayley. I have a statement to make, which I have put in
writing, and would ask that action be taken'at this meeting:
Three years ago Messrs. Corrigan, McKinney & Co., of Cleveland, borrowed $250,000
from the Cleveland Cliffs Iron Co., giving their notes therefor, and put up as collateral
the leases and the stock of the companies owning the leases of the Queen group of
mines at Negaunee, Mich. Two years ago we purchased through James Corrigan, of
Corrigan, McKinney & Co., their interest in these mines for $100,000 and assumed this
indebtedness to the Cleveland Cliffs Iron Co. At that time we said to Mr. Corrigan
that he should have come to us for such a loan, as he could have avoided a traffic con-
tract on a million tons of ore which was executed by the Cleveland Cliffs Co. for their
royalty.
A few weeks ago Mr. Corrigan called on me and stated he wanted to obtain a loan for
$200,000 in order to improve certain ore properties controlled by him, and clear up
some small indebtedness. As security for this loan he will give to the Oliver Iron
Mining Co. the lease and equipment of the coke mine making complete assignment to
them and will put up as collateral, the leases and stock of companies owning the leases
of the following mines: Crystal Falls, Lament; Great Western, Paint River; Lincoln,
Armenia.
These mines are all located in the Crystal Falls district of the Menominee Range.
They are non-Bessemer mines producing ore running from 58 to 60 per cent iron, and
from 20 per cent to 70 per cent phosphorus. The cost of mining would be as cheap as
at any of our best mines, for, while the deposits are not large, yet there is very httle
water to pump and little timbering required. While some of the ore is too high in
phosphorus for use in making basic iron, it commands a premium in the market by
reason of its phosphorus for foundry irons. The Hope mine is now being opened, and
likewise the Armenia. The former gives promise of a fair ore body, and carries about
25 per cent phosphoros. The Armenia is showing well, and produced an ore
slightly over the Bessemer limit. All of these ores partake of the nature of the Menomi-
nee hematites, being coarse grained and work excellently in the furnace.
Mr. Corrigan proposes to repay this loan as follows: $100,000 in one year and $100,000
at the end of second year.
Outside of the Cleveland Cliffs group of mines at Ishpeming, there is no other large
Old Range group not owned by us, excepting these at Crystal Falls. This amount of
money can be easily borrowed on the security offered, and it is advisable that we should
loan it, as we may, later on, secure the property at a reasonable figure and avoid paying
an extra premium; and, further, it puts us in position to work in harmony with Cor-
rigan, McKinney & Co., who have good properties on other ranges, and who can be
very useful to us in many ways. Our mining officers have just finished a careful
examination of the mines and report them in good condition; they will produce 400,000
tons this year, and the railroad is less than 15 cents per ton on the group. On our trip
4106 UNITED STATES STEEL COEPOBATION.
to the Northwest last week, Mr. Clemson and I looked carefully into the matter, and we
desire to recommend it.
Mr. Phtpps. It seems to me that as Corrigan, McEomiey & Co. have
been such factors in the ore-mining business, and we have obtained
a great deal through them, that we should, as much as possible, keep
in touch with them and assist them where we are safe. We can very
readily afford to carry the loan for them, and there does not seem to
be any risk in doing it. I think it would be to our advantage to loan
the money.
Mr. Gatlet. The principal advantage, I think, is that the group
of mines wiU eventually come to us. These people are always getting
into financial difficulties, and if it had not been that we had stepped
into the Queen group of mines they would have gone to the Cleve-
land CHffs Co. I think the outlook is, and while it may not prove so,
that we will eventually get that group of mines. It puts us in touch
with them so that we wdl get the first call on their other mines. It
has been their history that their mines are available for purchase.
They have some very excellent mines on the Missabe Range and are
practically in control of the non-Bessemer ore market to-day.
Mr. Lynch. I am perfectly wiUing to act on the recommendation
of Messrs. Clemson and Gayley, but this occurs to me: The collateral
that they have offered is ample; why do they, as business men, come
to us for this money and put themselves in our power ?
Mr. Gayley. For the simple reason when they obtained that other
loan, and we had to pay a bonus on it, we suggested to them that in the
future, if they needed to borrow money with their mines as collateral,
they come to us.
Other members of the board favored the loan, and on motion of
Mr. Clemson, seconded by Mr. Lynch, the loan as outUned by Mr.
Gayley was authorized, the vote being unanimous.
purchase of 300 acres of ore land.
While in Duluth we arranged to secure 300 acres on which ore has
been found, and which promises a good-sized deposit. There is a
large tract lying on both sides of the railroad, which by our contracts
we could not purchase, so we wired for Mr. Corrigan of Cleveland to
meet us in Ironwood, Mich., last Monday, and arranged with him that
he should secure the old tract and turn over to us that portion lying
to the east. This territory promises the best return to us for explora-
tion work of any section in the Lake Superior region. The ores are
coarser than the ordinary Missabe. They are but 47 miles from the
lake, and Mr. Bacon, the president of the Minnesota Iron Co., recently
stated that it was the point most dangerous to the interests of the rail-
roads carrying . ore. At the same time Mr. Porter, of the Federal
Steel Co., has opposed Mr. Bacon securing any property there. It is
fortunate for us that the ore interests of the Federal Steel Co. are in
other hands.
CANADIAN ORE LAND.
Three hundred and twenty acres with outcropping vein of 400 feet
and of 500 feet, both rich in iron and low in phospnorus, to cost not to
exceed $4,000. Purchase recommended.
united states steel ookpobation. 4107
December 4, 1900.
Contract between the Carnegie Co. and Carnegie Steel Co. for ad-
justment of ore prices approved. The contract provides that the
price of ore shall be agreed upon quarterly instead of annually.
December 18, 1900.
The board of directors authorized the issuance of 10,000 shares of
preferred stock to be first offered to shareholders in proportion to
their holding of stock upon December 17, 1900, in the proportion of
one-twenty-third of one share for each share of stock now outstanding.
INCORPORATION OF THE PROPOSED BESSEMER & LAKE ERIE RAIL-
ROAD CO.
Communication from Judge Reed in re incorporation of corpora-
tion to be known as Bessemer & Lake Erie Railroad Co., submitted
as f oUows :
Referring to the proposed lease of the Bessemer Bailroad, the Carnegie Co. being
unable to operate the railroad directly, it will be necessary to organize a, railroad
company, under the laws of Pennsylvania for that purpose, the entire capital stock
of which will be owned by the Carnegie Co., and the latter as the owner of all of the
stock can under the powers conferred by its charter guarantee the payment of the
rental, etc.
The route and provisions for the incorporation are set forth.
December 29, 1900.
The president stated the object of the meeting was to consider the
purchase of two ore mines, one known as the Mansfield and the other
as the Columbia, both' located near Crystal Falls, Mich.
Mr. Clemson. The royalty would be 35 cents, mining $1, rail rate
40 cents, lake rate 60 cents, or $2.35 at Lake Erie ports. Norrie'a
cost is: Royalty 40 cents, mining 85 cents, raU and lake rates the
same, making the cost $2.25.
We charge off 50 cents per ton on Norrie, making the cost $2.75.
We would have to charge off on this other ore $1 per ton, making
$3.35 _as against Norrie's $2.75. Don't you consider that a very
high price ?
Mr. Clemson. It is a high price, but there would not be any
money lost on the purchase of that property when we consider that
it is Old Range ore. We take that much out of the market. From
the information I have I would be willing to pay $400,000 for the
Mansfield property. ,.,.., i
Mr. Schwab (to Mr. Oliver). Our people leel a little chary about
deciding this matter on such short notice, with the limited informa-
tion at hand, with reference to these mines. The calculation which
Mr. Clemson has' made here would seem to indicate on any basis
this ore would cost us 50 cents more per ton than the cost of mining
Norrie, and even assuming it of the same quaUty, by reason of the
smaller tonnage of ore in the mine, when we have to charge off $1
per ton on the ore to get even. In very close times that would
mean $1 per ton on the pig iron, and we could hardly use it without
loss.
Mr. Oliver. If you apply the rules that obtain prior to, say, five
years ago, your position is correct, but I maintain that the great
31572— No. 53, pt. 2—12 24
4108 UNITED STATES STEEL CORPORATION.
scarcity of Old Range ore and the fact that except our Pironeer and
some of our Gogebic, all the expense we haTe gone to, together
with that of aU our competitors and neighbors and with the incentive
of $5.50 per ton to the outside independent operators for Old Range
ores this year there has been a falling off of 600,000 tons, which
changes the situation decidedly. The miners simply could not get
the ore. They got aU they could, but it is short. We are mining it,
spending a good deal of money for it, and though we have succceeded
in obtaining over two-thirds this year of all the Old Range ores that
have been found, I maintain that the old rules can not be appUed,
and you can not take the reports and the testimony of our men up
there who go on comparison. The comparison is drawn just as the
condition of $9 to $13 pig iron is drawn. If our explorations during
this year have developed any showing of ore, I would not propose to
buy these mines, but we have not found it, and here is a good big
lump of ore which we can obtain, on which we can not lose any-
thing. The people owning the mines say $400,000 made on profits
of mining this ore, and I do not think they are out of the way in
asking the price.
Had you not better look ahead and see where you are going to get
your ore? We have been spending up to $30,000 per month, but
we can not get the ore. We have had no returns.
After more discussion the board offered not to exceed $450,000
for the Bessemer Mine, with an option on the non-Bessemer mine for
further investigation.
January 9, 1901.
Charter obtained for the Bessemer & Lake Erie Railroad Co.
Lease of Pittsburgh Railroad to Bessemer Railroad Co. submitted.
Mr. Schwab. Judge Reed stated that instead of leasing the Pitts-
bm^h, Bessemer & Lake Erie Railroad Co. to the Union Railroad as
origmally contemplated, it would be better to build the short cut-ofif,
starting at once, leasing the road to it, and have the Carnegie Co.
guarantee the dividends on the stock. The object is this, the Pitts-
burgh, Bessemer & Lake Erie Railroad will undoubtedly earn more
money than is necessary to pay the interest on its securities, but that
the excess money would probably be applicable for payment to the
stockholders. We own one half the stock, but it is possible some
minority stockholder may raise the question as to the application of
this money for other purposes than dividends. We can not put the
ore rate on the Pittsburgh, Bessemer & Lake Erie Railroad below the
rate which now exists, unless we own all the stock or lease the road
to another company, guaranteeing results on the stock. If we
wanted, in the spring, to put the rate on ore down to 20 cents per
ton, we could not do it with the Pittsburgh, Bessemer & Lake Erie
Railroad stock in the shape it now is, because a contract is in existence
compelling us to maintam the 53-cent rate.
The lease of Pittsburgh, Bessemer & Lake Erie Railroad Co.
guaranteeing 6 per cent per annum upon the par value of the pre-
lerred stock and 3 per cent per annum on common stock.
tjnited states steel ooepokation. 4109
Febkxjaby 5, 1901.
pukohase of oee land.
Mr. Gayley. I would like to have the authority of the board for a
transaction involving the sale of some ore. Sometime ago we made
a loan to Corrigan, McKinney & Co. of $200,000. In additio'n to that
we have been negotiating for the Columbian mine, which is non-
Bessemer ore of the same class as the Corrigan mines. We do not
want to retire from the non-Bessemer iron market, because our stay-
ing in enhances the value of both of these properties, and it is possible
that we may get both of them at a cheaper price a little later on. I
think it is advisable, therefore, that we should market 100,000 tons
of our Iron River ores. We have sufficient non-Bessemer ores for
basic iron. In addition to this, I came over on the steamer with
Messrs. MacClurg and Douglas, who represent the Sault Ste. Marie
mines. They expect to put a lot of ore on the American market this
year. I have an arrangement with them, or rather they made me
an offer to sell all their ore to us which comes to the United States,
and they are willing at any time to make an arrangement with us to
control their ores for the American market.
I had a talk also with M. A. Hanna & Co. last week, in order to
bring them to a proper frame of mind for dealing with us. I think it
is policy for us to market at least a couple of hundred thousand tons
of non-Bessemer ore this season. As I see it, it is going to be ore well
expended, through the acquirement of the larger ore reserves. So
far as association goes, there is no non-Bessemer agreement, but even
if there should be, it is perfectly proper to sell ore at association
prices. The selling of this ore would strengthen our position very
materially, as a matter of policy, as we would be known as marketers
of non-Bessemer ore.
Mr. Schwab. You mean, I understand, that we have plenty of
non-Bessemer mines of our own, and if we acquire other mines it
would be to sell the ore.
Mr. Gayley. If we are in the market, other mines are not worth so
much. It is advantageous in other directions, toward the acquire-
ment of other properties owned by the same parties which own thi.s
Columbian mine.
Oth«r members of the board spoke briefly in favor of selling ore
under the conditions recited by Mr. Gayley, and it was moved hj Mr'.
Morrison, seconded by Mr. Singer, that the board of the Oliver Mining
Co. be authorized to make such sales of non-Bessemer ore as would
be recommended by Mr. Gayley. The motion was carried, the vote
being unanimous.
Letter from President Henry W. Oliver, of the Oliver Iron Mining
Co., dated January 16, 1901, read, reporting the purchase of the
Mansfield mine for $425,000. Also an option on the Columbian
mine, the company to have full access for exploration; the price to
be $375,000.
"In addition I secured a reduction from the fee owners of the
Mansfield mine of the rate of royalty to be paid, making the fixed
rate of 30 cents per ton instead of the present sliding scale, which
makes such rate on lessor's ore about 38 cents per ton. I also secured
from the fee owners an additional two forties, adjoining the ore body,
4110 UNITED STATES STEEL CORPORATION.
one on the right and the other on the left, at the same rate of royalty,
and a minimum of 10,000 tons annually on each forty, with the right
to surrender, etc. Our mining people are of the opinion that there is
a great probability of the ore body extending imder these forties.
RAILROAD AGREEMENT BETWEEN CARNEGIE STEEL CO., UNION RAIL-
EOAD CO., AND A SYNDICATE TO CONNECT WITH THE WABASH RAIL-
ROAD AT TOLEDO, FIXING RATES AND COMMISSIONS.
(Copy wiU be furnished if required.)
March 11, 1901.
Columbian mine purchased by Oliver Iron Mining Co. for $200,000.
NEQAtTNEE MINE PTJKCHASE.
Mr. Gatley. I would also Hke the approval of the board of the
purchase of the Eose tract property at Negaunee, which is an extension
of our Hartford mine, cost being $100,000. This property is right
in the train of the ore and very desirable, too. The purchase has been
approved individually by members of the Ohver Mining Co. board.
The ore is partly non-Bessemer and partly Bessemer. The terms of
claimant are cash. If we had not taken the property, it would have
been purchased by the Mathers people. We had to act verv quickly
to keep them from getting it. The ore is estimated at anywnere from
two to four million tons.
Mr. Clemson. I approve of the purchase because it is a strategic
move. I am certain it is worth the money.
It was moved by Mr. Morrison, seconded by Mr. L. C. Phipps, that
the purchase of the property in question by tne Oliver Mining Co. be
approved; the vote was carried unanimously.
March 20, 1901.
extract FROM LETTER OF ANDREW CARNEGIE, DATED MARCH 12, 1901,
RELATING TO BONUS FUNDS.
I make this first use of surplus wealth upon retiring from business as an acknowl-
edgment of the deep debt which I owe to the workmen who have contributed so
greatly to my success. I hope the cordial relations which existed between employers
and employed throughout the Carnegie Co. works may never be disturbed, both
employers and employed remembering what I said in my last speech to the men at
Homestead: "Labor, capital, and business ability are the three legs of a three-legged
stool. Neither is first, neither is second, neither is third; there is no precedence, all
being equally necessary. He who would sow discord among the three is an enemy
of all."
I know that I have done my duty in retiring from business when an opportunity
presented itself, and yet as I write my heart is full. I have enjoyed so much my con-
nection with workmen, foremen, clerks, superintendents, partners, and all other
classes, that it is a great wrench indeed to say farewell. Happily there is no real
farewell in one sense, because, although no longer an employer, I am still and always
will be a friend, deeply interested in the happmess of all whom it has been my good
fortune to know and work in sympathy with for so many happy years.
April 16, 1902.
Union Supply Co., incorporated at $500,000, stock to be deposited
with United States Trust Co. under deed of trust of Camera Co.
Board of directors meeting.
united states steel ooepoeation. 4111
December 19, 1902.
The secretary presented a form of agreement of merger and con-
solidation between the Carnegie Co., National Steel Co., and American
Steel Hoop Co.
Upon motion duly seconded, it was unanimously resolved that the
said agreement be and hereby is approved and that the proper
officers of the company be and hereby they are authorized and
directed to execute the agreement under the seal of this corporation
and that the same be thereupon submitted to the stockholders of this
company, and that the secretary of this company be and hereby he
is authorized and directed to call a meeting of the stockholders of this
company for the purpose of taking into consideration the said
agreement of merger or consoUdation, etc.
Special meeting of the stockholders.
January 10, 1903.
Merger and consohdation approved.
(A copy of the merger agreement will be submitted if required.)
The last meeting of directors is March 25, 1903. The merger and
consohdation with the National Steel Co. and American Hoop Co.,
which resulted in the formation of the Carnegie Steel Co., the New
Jersey corporation, was perfected March 26, 1903.
CARNEGIE STEEL CO.
(A Pennsylvania corporation.)
Minutes of the Stockholders and Directors, as Extracted
FROM February 9, 1904, and March 27, 1903, respectively, to
February 3, 1911.
Note. — There were three Carnegie companies, as follows; Carnegie Steel Co., a
corporation of Pennsylvania, which was chartered May 22, 1899, and succeeded ue
old limited partnership, and began business April 1, 1900, which was an operating
company until leased to the Carnegie Steel Co., a corporation of New Jersey.
2. The Carnegie Co., a corporation of New Jersey, which was chartered March 24,
1900, and began business April 1, 1900. This company held the stock of the Carnegie
Steel Co., the Pennsylvania corporation, together with the stocks of various other
companies, and the stock of this company was purchased by the United States Steel
Corporation.
3. Carnegie Steel Co., a corporation of New Jersey, was organized about March 26,
1903, by the merger of the Carnegie Co., National Steel Co., and American Steel
Hoop Co.
a.Camegie Steel Co., the Pennsylvania corporation, was leased under an operating
contract to the Carnegie Steel Co. f the New Jersey corporation formed by the merger
of the Carnegie Co., National Steel Co., and American Steel Hoop Co.), on or about
December 26, 1905.
Minutes of Meetings of Stockholders Beginning February 9,
1904, AND Meetings of Board of Direotors Beginning March
27, 1903, Down to February 13, 1911.
Stockholders meetings were held February 9, 1904; February 14,
1905; February 12, 1906; February 11, 1907; February 10, 1908;
February 8, 1909; February 14, 1910; and February 13, 1911. These
minutes referred to nothing but election of officers and directors,
organization of proxies, etc.
Friday, March 27, 1903.
Meeting of board of directors of the Carnegie Steel Co. of Pennsyl-
vania held at its office in Pittsburgh, Pa.
Mr. Blackburn presented the foflowing resolution:
Resolved, That the president and secretary are authorized and directed to execute
on behalf of this company an agreement witn the Carnegie Steel Co. (of New Jersey),
providing for the operation by that company of the various works and properties ol
this company, upon a rental to be agreed upon between the two companies, possession
to be given of the plants April 1, 1903. The treasurer is also authonzed and directed
to deliver as of April 1, 1903, to the said Carnegie Steel Co. (of New Jersey) all materials,
stock on hand, and other personal property, and all moneys, bills, and accounts
receivable; that company agreeing to pay all liabilities of this company and to main-
tain and operate the properties of this company and to carry out and perform its
contracts and occupations; the said operating contract to continue in force until
terminated by six months' notice from either party.
On motion of Schwab, seconded by Blackburn, the resolution was
unanimously adopted.
4112
vhited states steel ookpoeatiox. 4113
July 8, 1903.
ilr. Corey, president.
August 13, 1903.
Alya C. Dinkey elected in place of CSorey, resigned.
July 25, 1904.
Present: Judge Reed, chaLrman, et aL
S]^edal loan from United States Steel Corporation for $7,015,216.14;,
earned on tiie books of this company, to be drawn upon when needed.
June 19, 1905.
Pr^ent: Mr. Dinkey, president, et aL
Nine hundred and seventy-four thousand five hundred and sixty-
eight dollars and seventeen cents written off as expenditures.
July — , 1905.
Present: Judge Reed, chairman, et al.
Request from United States Steel Corporation to issue 5 per cent
notes dated July 1, 1905, and payable one each year for 10 years for
loan of $6,461,370.97 from United States Steel Corporation.
Form for these notes was supplied by the United States Steel
Corporation.
Deoembeb 26, 1905.
Present: Judge Reed, chairman, et al.
Operating contract with Cam^e Steel Co., the New Jersey cor-
poration, wiich was executed before being spread upon the nunutes
as follows:
Cam^e Steel Co., a corporation of PenHsylvania, hereinafter called TesoByl-
vania and Cam^^ie Steel Corporation, a corpoiatian of New Jersey, hereinafter called
New Jersey, hereby agree aa foUowi;:
First. For and in craiaideration of the gum of $1 as well as other good and valuable
considerations to it in hand paid, the receipt of which is hereby acknowledged,
Pemx?ylvania hereby leases unto Xew Jersey aU of its plant3 and properties, and all
equipment connected therewith and used in liie operation thereof situate in the State
of Pennsylvania.
8«;ond. New Jersey agrees to maintain and operate said plants in a good and WOTk-
manlike manner, Tn^t-ing all proper and needful repairs tibtereto; to surrender up the
said premises and property to Pennsylvania in good condition at the expiratum or
termination of this lease; and to pay all tax^ and water rents which may be aaseasod
against said proi>ertiM during the continuance of this lease. And as Pennsylvania
has tran-sferred to New Jersey with said property certain personal property, including
inventorira and cash assets for use by New Jer9ey_ for working ^pital m operating
said property New Jersey agrees upon the termination of this lease to return to Penn-
sylvania an equivalent value therefor, either in cash or inventories, or other assets
acceptable to Pennsylvania. .^. ,^.,.
Third. This lease shall contmue for a period of one year from the date hereof, and
further until the same shall be terminated by eith» party giving unto the other six
months' notice of its intention so to terminate this lease.
t Fourth. This lease shall take effect as of the 1st day of April, 1903.
JuxE 22, 1908.
Present: Judge Reed, chairman, et al.
Construction expenses written off for $6,746,824.92.
4114 united states steel corporation.
September 14. 1908.
Present: Mr. Dinkey, president, et al.
Purchase of Schoen Steel Wheel Co.:
To the Schoen Steel Wheel Co.
The directors of the Camegje Steel Co. have authorized the submission to your com-
pany of the following proposition: The Carnegie Steel Co. proposes to buy from your
company all its property, real, personal, and mixed, together with all its corporate
rights, privileges, and franchises, the said sale to be consummated as of August 1, 1908.
Upon delivery of the proper deeds, bills of sale, assignments, and other necessary
evi^nce for all of your property and franchises, the Carnegie Steel Co. will pay
$1,496,000 in cash to those persons who may be stockholders of record of your company
at the time of the delivery of such conveyances in amounts proportionate to their
respective holdings of your company's stock, and in addition thereto the Carnegie
Steel Co. will assume and agree to pay as and when they become due and payable
the outstanding bonds of your company of its issue of $1,500,000 secured by the first
mortgage of your company to Girard TMist Co., trustee, dated March 1, 1906, and all
of your other liabilities and obligations of every kind and creation, but only in the
same manner and to the same extent as your company would have been liable if
said assignment and agreement had been made.
Carnegie Steel Co.,
By • ,
President.
Attest:
, Secretary.
Resolved, That the said proposition be accepted and approved by the stockholders
and directors.
February 13, 1911.
Present: Judge Keed, chairman, et al.
Note. — This is the last meeting recorded in the minute book.
These minutes contain substantially nothing but elections of
officers, resolutions for real estate transfers, proxies, and the few
items above extracted.
MINUTES OF CLAIETON STEEL CO. AS EXTKACTED,
VOLUME 1, JUNE 10, 1902, TO MAY 1, 1905.
JtTNE 10, 1902.
Present: Messrs. W. P. Snyder, James H. Park, A. W. Mellon,
R. E. Jennings, and Frank B. Smith; Mr. Snyder presided, and John
A. Sutton acted as secretary of the meeting.
The president stated that the company had received a certificate
from the old St. Clair Steel Co. and the St. Clair Furnace Co., show-
ing that all of the capital stock of each of said companies had been
voted in favor of the consoUdation and merger of said company and
in favor of the articles of consolidation and merger between the said
companies, dated the 5th day of June, 1902, and which articles of
consoHdation and merger had been entered into to form this company
and are as follows:
Agreement of consolidation and merger made this 5tti day of June, A. D. 1902, by
and between the St. Clair Steel Co., a corporation, William P. Snyder, Howard N.
Babcock, James H. Park, Herbert DuPuy, and Frank B. Smith, the directors thereof,
parties of the first part, and the St. Clair Furnace Co., a corporation, William P.
Snyder, Howard N. Babcock, James H. Park, Herbert DuPuy, and Frank B. Smith,
the directors thereof, parties of the second part.
Whereas the said St. Clair Steel Co. is a corporation duly organized under the
"corporation act of 1874" of the Commonwealth of Pennsylvania and the supplements
thereto, and by virtue of letters patent granted to said St. Clair Steel Co. by said
Commonwealth, dated November 3, 1900, is authorized to manufacture iron or steel
or both or any other metal or any article of ores from metal, or wood or both, as has also
to exercise the powers conferred by said several supplements upon such corporation,
and which corporation has an issued capital stock of $750,000 and an issue of bonds to
tile amount of $2,250,000 secured by a mortgage upon the property and franchises of
said company, and.
Whereas the said St. Clair Furnace Co. is a corporation duly organized under the
"corporation act of 1874," of the Commonwealth of Pennsylvania and the supple-
ments thereto and by virtue of said letters patent granted to said St. Clair Furnace
Co. by said Commonwealth, dated April 24 1901, is authorized to manufacture iron
or steel or both or any other metal, or article of ores from metal or wood or both, as also
to exercise the powers conferred by said several supplements upon such corporation,
and which said corporation has an issued capital stock of $1,000,000 and an issue of
bonds to the amount of $3,000,000 secured by a mortage upon the property and
franchises of said company, and.
Whereas it is the desire of the said companies, parties hereto, as expressed by the
action of the board of directors of the company, to merge and consolidate their capital
stock, franchises and property, as bjf law they are authorized in that behalf to do.
Now, therefore, this agreement witnesseth that the said companies, parties hereto,
in consideration of the premises, and the terms and conditions hereinafter set forth
and other good and valuable considerations, have agreed and do hereby agree, each
with the other, that upon the due approval of this agreement by the stoclmolders of
each of the said corporations, parties hereto, and the filing of the same or a copy
thereof in the office of the secretary of the Commonwealth, in accordance with the
statutes in such case made and provided, the said respective companies, parties
hereto do by these presents consolidate and merge their capital stock, property and
franchises and shall be deemed and taken to be one corporation by the.name provided
ia this agreement and articles of consolidation, possessing within the State of Pennsyl-
vania all the rights, privileges and franchises, and subject to all the restrictions, dis-
abilities, and duties of such corporations.
4115
4116 UNITED STATES STEEL COEPOBATION.
The terma and conditions of such consolidation and merger are as follows:
First. The name, style, and title of said consolidated corporation shall be Glairton
Steel Co.
Second. The board of directors of said consolidated corporation shall consist of
seven members, and the oflScers shall be a president, a vice president, a treasurer, a
secretary, and such other oflScers as may from time to time be deemed necessary.
Until the first annual election, the following named persons whose places of residence
are set opposite their respective names shall be the directors and officers of the said
new corporation: W. P. Snyder, Pittsburgh, Pa.; Herbert DuPuy, Allegheny, Pa.;
Frank B. Smith, Sewickley, Pa.; A. W. Mellen, Pittsburgh, Pa.; R. E. Jennings,
Jersey City, N. J.; James H. Park, Pittaburgh, Pa.; Reuben Miller, Pittsburgh, Pa.
Officers: W. P. Snyder, president, Pittsburgh, Pa.; Frank B. Smith, vice president,
Sewickley, Pa.; John A. Sutton, secretary, Pittsburgh, Pa.; Julius Bieler, treasurer,
Pittsburgh, Pa.
Third. The stockholders of said company shall meet on the fourth Wednesday in
October in every year at the chief office of the company and choose by a majority of
the votes present a board of directors for the ensuing year. The officers of the company
shall be elected by the board of directors annually.
Fourth. The amount of the capital stock of the said consolidated corporation shall
be 13,500,000, divided into 35,000 shares at the par value of $100 each.
Fifth. The manner of converting the capital stock of each of the said companies
parties hereto into that of the new corporation shall be as follows:
The stockholders of the said St. Clair Steel Co. shall receive full paid-up capital
stock of the new corporation to the amount of $1,500,000 at par value, consisting of
15,000 shares, which shall be divided among the said stockholders pro rata in propor-
tion to their holdings of the stock of the said St. Clair Steel Co.
The stockholders of the said St. Clair Furnace Co. shall receive full paid-up capital
stock of the said new corporation to the amount of $2,000,000 at par value, consisting
of 20,000 shares, which stock shall be divided among the said stockholders pro rate
in proportion to their respective holdings of the capital stock of the said St. Clair
Furnace Co.
Sixth. The said new corporation shall exist perpetually, in accordance with the
statutes in such case made and provided.
Seventh. The said consolidated corporation shall be subject to and regulated by all
the corporate rights, privileges, and franchises, duties and obligations existing under
and by virtue of each, any, and all of the said articles of association and letters patent
of said companies parties hereto, and the several acts of assembly, principal and sup-
plementary, relating to any and all of the said companies parties hereto.
Eighth. The principal offices of the said new corporation shall be at the city of
Pittsburgh, in the county of Allegheny, in the State of Pennsylvania.
Ninth. Upon the consummation of this act of consolidation all and singular the
righta, privileges, contracts, and franchises of each of said corporations parties hereto,
and all the property, real, personal, and mixed, and all the debts, due on whatever
account, and other things m action belonging to each of said corporations parties
hereto, shall be taken and deemed to be transferred to and vested in the said consoli-
dated or new corporation without further act or deed, and all property, rights, and
franchises, and all and every other interest, shall be as effectually the property of the
said consolidated or new corporation as they were of the said corporations parties
hereto; and the title to real estate, either by deed or otherwise, under the laws of said
Commonwealth of Pennsylvania, vested in either of said corporations parties hereto
shall not be deemed to revert or be in any way impaired by reason of this act and
agreement of consolidation and merger, but shall be vested in said consolidation or
new corporation; provided, however, that aU the r^hta of creditors and all liens
upon the property of either of said corporations parties hereto, including the issues
of bonds hereinbefore recited, shall be preserved unimpaired, and the said corpora-
tions parties hereto may be deemed to continue in existence to preserve the same,
and all debts, liabilities, and duties of either of said companies parties hereto shall
thenceforth attach to said new corporation and shall be enforced against it to the Mtme
extent as if said debts, liabilities, and duties had been incurred or contracted by it.
The board of directors of the St. Clair Steel Co. has by resolution duly adopted
authorized and appointed John A. Sutton as its attorney to acknowledge this agree-
ment of consolidation and merger, and the said St. Clair Steel Co. doth hereby con-
stitute John A. Sutton to be its attorney for it and in its name and as and for its cor-
porate act and deed to acknowledge this agreement of consolidation and merger
before any person having authority by the laws of the Commonwealth of Pennsyl-
vania to take such acknowledgment, to the end that the same may be duly recorded.
The board of directors of the St. Clair Furnace Co. has by resolution duly adopted
authorized and appointed John A. Sutton as its attorney to aclmowledge this agree-
UNITED STATES STEEL CORPORATION.
4117
ment of consolidation and merger, and tte said St. Clair Furnace Co. doth hereby con-
stitute John A. Sutton to be its attorney for it and in its name and as and for its cor-
porate act and deed to acknowledge this agreement of consolidation and merger
before any person having authority by the laws of the Commonwealth of Pennsylvania
to take such acknowledgment, to the end that the same may be duly recorded.
In witness whereof the said companies parties hereto have caused their corporate
seals to be affixed, duly attested, and these presents to be signed by their respective
presidents and the several directors of said respective companies the parties hereto
have hereimto set their hands and seals the day and year first above written.
[seal.]
Attest:
Directors:
W. P. Snydek.
SEAL.
H. N. Babcock.
seal.
Jambs H. Paek.
SEAL.]
Herbert DuPuy.
SEAL.'
Prank B. Smith.
SEAL.'
Attest:
[seal.] John A. Sutton, Secretary
Directors:
W. P. Snyder.
SEAL.
H. N. Babcock.
SEAL.
James H. Park.
SEAL.
Herbert Du Put.
SEAL.
Frank B. Smith.
SEAL.
St. Clair Steel Co.,
By W. P. Snyder, President.
John A. Sutton, Secretary.
St. Clair Furnace Co.,
By W. P. Snyder, President.
(Two acknowledgments before notaries public by John A. Sutton. Two acknowl-
edgments by directors of respective companies. Affidavit of submission of articles
of consolidation and merger to stockholders of respective companies attached.)
The president further stated that pursuant to said articles of con-
solidation and merger, letters patent for this company had been
obtained from the Commonwealth of Pennsylvania dated the 9th
day of June, 1902.
Formal letters patent of Pennsylvania for the consolidation and
merger of the St. Clair Furnace Co. and the St. Clair Steel Co., and
the incorporation of the Clairton Steel Co. issued June 9, 1902.
June 10, 1902.
Present: Snyder, Park, Mellon, Jennings, and Smith in person, and
Crucible Steel Co. of America, Herbert Du Puy and Reuben Miller by
proxy.
By-laws of Clairton Co. adopted.
June 17, 1902.
Present: Snyder, Park, Mellon, Jennings, and Smith.
The president stated that he had entered negotiations with the
Crucible Steel Co. of America looking to the construction of certain
additions, extensions, and improvements upon the plant of the com-
pany and that the result of these negotiations were embodied in a
proposition from the Crucible Steel Co. of America to this company,
a copy of which proposition is as follows:
Pittsburgh, Pa., June 17, 190Z.
To the Clairton Steel Co.,
Pittsburgh, Pa.
The Crucible Steel Co. of America hereby proposes to construct or cause to be con-
structed, upon the plant of the Clairton Steel Co., the additions, extensions, and im-
provements shown upon lie drawings and plans prepared by the engineer of the Clair-
4118 UNITED STATES STEEL COBPOBATION.
ton Steel Co. and to furnish working capital to commence operation of said plant
for the Bum of $5,000,000 par value of 5 per cent mortgage gold bonds of your company.
It is agreed that the whole cost to this company of constructing the additions, ex-
tensions, and improvements and the working capital shall not exceed the net pro-
ceeds realized by this company upon the sale of said bonds, but in case of any altera-
tion in the plans whereby the cost of said additions, extensions, and improvements
is reduced, the Crucible Steel Co. of America, in the event of the acceptance of this
proposition, hereby agrees to pay into the treasury of said Clairton Steel Co. as working
capital, a sum of money equal to the difference between the estimated cost of said
additions, extensions, and improvements mentioned and the actual cost of same.
In the event of the acceptance of this proposition and the issuance of the bonds
of the Clairton Steel Co. as aforesaid, said bonds are to be secured by a mortgageiimon
all the property, real, personal, and mixed of the said Clairton Steel Co., dated July
1, 1902, and shall bear interest at the rate of 5 per cent per annum from July 1, 1902,
payable semiannually and free of tax, and the principal of said bonds shall be payable
as follows: Five hundred thousand dollars thereof on the 1st day of July, 1904, and
$500,000 thereof on the 1st day of July in each year thereafter until and including the
1st day of July, 1913.
Crucible Steel Co. of America,
By Robert E. Jennings, Second Vice President.
Attest:
Frank B. Smith, Secretary.
Approved by executive committee.
H. M. Babcook, Assistant Secretary.
After a full discussion, it was on motion of Mr. Park, seconded by
Mr. Mellon, resolved that a meeting of the stockholders be called to
convene at the general office of the company on the 17th day of June,
1902, to take action upon the approval or disapproval of the acceptance
of the proposition of the Crucible Steel Co. of America to this com-
pany and that the secretary give notice thereof, unless the same be
waived by aU the stockholders.
The president then stated that, in order to carry out the terms of the
said proposition, in case of its acceptance by the stockholders of this
company, it would be necessary to increase the indebtedness of the
company from $5,250,000 to $10,250,000 and to isstae bonds therefor
secured by the mortgage of the company.
After a full discussion it was, on motion of Mr. MeUon, seconded by
Mr. Park, unanimously
Resolved, First, that it is the purpose of this company to increase its indebtedness
from $5,250,000 to $10,250,000; second, that a meeting of the stockholders be called
to convene at the general office of the company on the 17th day of June, 1902, at 3
o'clock p. m., to take action on the approval or disapproval of the proposed increase
of indebtedness of the company from $5,250,000 to $10,250,000, the notice by publi-
cation required to be given by the constitution and laws of this Commonwealth having
been waived by the unanimous consent of the stockholders.
On motion, Messrs. James H. Park, Frank B. Smith, and Andrew
W. MeUonwere appointed judges to conduct the election of the stock-
holders of the company upon the proposition to increase the indebt-
edness of the company at a meetmg to be held on the 17th day of
June, 1902, at 3 o'clock p. m.
June 17, 1902.
Meeting of stockholders.
Present: W. P. Snyder, James H. Park, A. W. Mellon, E. E. James,
and Frank B. Smith in person, Herbert Du Puy, Reuben MiUer, and
Crucible Steel Co. by proxy.
Proposition submitted to meeting as above, and it was —
Resolved, First, that the proposition of the Crucible Steel Co. of America to this
company, this day presented to the stockholders, be, and the same is, hereby accepted;
second, that the board of directors of the company be, and they are hereby, authorized
UNITED STATES STEEL OORPOEATION. 4119
and directed to execute all papers and do all things necessary to carry out said propo-
sition on the part of this company, including the issuance of the bonds of this com-
pany through the Crucible Steel Co. of America.
The phainnan then stated that the meeting was open for the con-
sideration of the proposed increase of the indebtedness of the com-
pany. The secretary read the resolution adopted by the directors
calling a meeting of the stockholders to take action on the approval
or disapproval of the proposed increase of indebtedness of the com-
pany on $5,250,000 to $10,250,000. The secretary then stated that
all of the stockholders of the company were present or by proxy to
sign a waiver of notice of the holding of this meeting for the pur-
pose aforesaid and had consented to said increase of indebtedness, a
copy of which waiver is aimexed to the minutes and is signed by — ■
Shares.
Crucible Steel Co. of America (by Eeuben Miller, president; attest, Frank
B. Smith, secretary) 34,986
James H. Park 2
Frank B. Smith 2
W. P. Snyder 2
Herbert Du Puy 2
Robert E. Jennings 2
Reuben Miller 2
After due consideration it was, on motion of Mr. MeUon, seconded
by Mr. Jennings, unanimously —
Resolved, First, that the stockholders of this company, duly assembled in pursuance
of the resolution of the board of directors of the company, do hereby consent to and
authorize an increase of the indebtedness of the company from $5,250,000 to $10,250,000.
Second. That the board of directors of this company be, and they are hereby,
authorized and directed to have prepared and executed in the name of this company
5,000 bonds in the sum of $1,000 each, dated July 1, 1902, and payable as follows:
Five hundred thousand dollars thereof on the 1st day of July, 1904, and $500,000
thereof on the 1st day of July in each and every year thereafter until and including
the 1st day of July, 1913, at the rate of 5 per cent per annum, payable semiannually,
both principal and interest being payable in gold coin of the United States or of equal
to the present standard of weio;ht and fineness, which said bonds shall be free from all
taxes now or hereafter imposed by the United States of America, or any State, county,
or municipality in which the property of this company is located, and shall be secured
by a mortgage upon all the property and assets, real, personal, and mixed, and the
franchise of the company now owned or hereafter acquired, said bonds and mortgage
aforesaid to be in terms and form satisfactory to the officers of this company and shall
be submitted to the stockholders of this company for their approval.
Third. That the board of directors of this company be, and they are hereliy,
authorized to execute and deliver the mortgage hereinbefore referred to to a trustee
to be designated by them, and shall also designate the time and place at which the
principal and interest of the said bonds shall be payable.
Fourth. That the board of directors of this company be, and they are hereby,
authorized and directed to use the entire issue of said bonds for the purpose of carry-
ing out the terms of the proposition made by the Crucible Steel Co. of America to
this company, and this day accepted by the stockholders of this company.
On motion, the stockholders proceeded to hold an election for or
against the increase of the indebtedness of this company from $5,250,000
to $10,250,000, as set forth in the foregoing resolution, and the judges
of election, being first duly sworn and having had furnished to them
a statement duly sworn to by the secretary of the company showing
the names of the stockholders of the company and the number of
shares held by each, proceeded to open the polls for votes. After all
the stockholders had voted the polls were closed, and the judges,
after counting the votes, declared that 35,000 votes by 35,000 shares
of stock had been cast in favor of said increase of indebtedness, and
that no votes had been cast against said increase of indebtedness.
4120 UNITED STATES STEEL COEPOKATION.
And thereupon said judges of election proceeded to execute in dupli-
icate the fouowing judges' return showiag 35,000 shares voted in favor
of the resolution to increase the iadebtedness.
(Copy of trust mortgage ia record of minutes : Clairton Steel Co. to
the Umon Trust Co. of Pittsburgh as trustee, to secure $5,000,000.)
Form of bond and mortgage approved, and board of directors here-
by authorized and directed to have the same executed by the proper
officers of the company and delivered to the trustee to be designated
by them.
June 17, 1902.
Meeting of board of directors.
Present: Snyder, Park, Mellon, Jennings, Smith.
Resolution to increase the indebtedness from $5,250,000 to $10,250,-
000 adopted, and the making of the mortgage approved.
July 15, 1902.
Resignation of Sutton and election of George L. Brown.
October 22, 1902.
Annual meeting of stockholders.
Election of directors.
Stockholders of Clairton Steel Co. of record October 1, 1902 (cap-
ital stock, $3,500,000) :
Shai«a.
James H. Park ; 2
W. P. Snyder 2
Herbert Du Puy 2
F. B. Smith 2
Reuben Miller 2
R. E. Jennings ^ 2
A. W. Mellon 2
Union Trust Co 20,992
Pittsburgh Trust Co 13, 994
Total 35,000
December 1, 1902.
Meeting of the board of directors.
The president of the company discounted at the City Trust Co. of
Boston, Mass., note of Clairton Steel Co. for $450,000 Avith collateral
attached (the entire capital stock of the Champion Iron Co.), which
action was upon motion approved by the board.
The president submittea the following contracts and agreements,
which upon motion of Mr. Du Puy, seconded by Mr. Smith, were duly
approved:
Assignment of lease by Messrs. Little & Prindle to the Clairton
Steel Co. of the southwest quarter of the southwest quarter of section
24-57-22, as per agreement dated 17th day of October, 1902.
Purchase of the capital stock of the Champion Iron Co., as per agree -
ment dated 19th day of December, 1902.
Contract for the purchase of certain coal lands from James H.
Crawford et al., dated 18th day of May, 1903.
Agreement to purchase certain coal lands from J. W. Thompson et
al., dated 29th day of May, 1903.
UNITED STATES STEEL OOKPOEATION. 4121
Statement showing miscellaneous contracts for sales of products,
purchase of raw material, and contracts for certain plant improve-
ments, were aU submitted and approved, as per statements on file.
July 14, 1903.
Special meeting of board of directors.
Present: Reuben Miller, W. P. Snyder, E. E. Jennings, Herbert Du
Puy, Frank B. Smith.
The president stated that the meeting was called for the purpose of
taking action upon the proposition submitted to the Crucible Steel
Co. of America, copy of which wUl be found as follows:
New Yoke, July 10, 190S.
To the Ceucible Steel Co. op America,
Pittsburgh, Pa.
Dear Sirs: E. H. Gary, H. C. Frick, and W. E. Corey, and W. P. Snyder (Oliver
& Snyder Steel Co.), committee appointed by the finance committee of the United
States Steel Corporation, with power to act, by W. E. Corey, duly authorized by hia
associates to execute this agreement, make you the following proposition:
- We agree to purchase at par, the United States Steel Corporation, $4,000,000; W. P.
Snyder, $1,000,000; Oliver & Snyder Steel Co., $1,000,000, of an issue to be made
immediately, of bonds, $6,000,000 in all, secured by a mortgage on all the property
of the Clairton Steel Co. The bonds to bear interest at the rate of 5 per cent per
annum; interest payable semiannually, to fall due in equal proportions, in 10, 15,
and 20 years from the Ist day of August next. The proceedTs of such bonds to be
paid into the treasury of the Clairton Steel Co.
The Union Trust Co. of Pittsburgh to be the trustee of the mortgage securing the
bonds. The moneys to be paid through them, and in consideration of the additional
security for the payment of the above $6,000,000 into the treasury of the Clairton
Steel Co., which in effect will be an additional ^arantee of payment of the issue
of bonds of the Clairton Steel Co., heretofore negotiated by said trust company.-they
are to release the shares of stock of the Clairton Steel Co., which they now hold as
trustee, for the purpose hereafter stated, namely:
The United States Steel Corporation to receive as part consideration for the above
Surchase $4,000,000 bonds, one-half of the shares of the total capital stock of the
lairton Steel Co.
W. P. Snyder to receive one-eighth of the shares of the total capital stock of the
Clairton Steel Co.
Oliver & Snyder Steel Co. to receive one-eighth of the shares of the total capital
Btock of the Clairton Steel Co.
The remaining 25 per cent of the shares of the total capital stock of the Clairton
Steel Co. to be owned and held by your company.
The money for the bonds to be paid in as quickly as the needs of the Clairton Steel
Co. require.
To enable the Clairton Steel Co. to work to its full capacity, and also maintain
market prices for pig iron and steel, a division of product m kind should be made as
follows: . .
The United States Steel Corporation agree to give orders regularly and receive
and pay for one-half of the total product of pig iron or steel made by the Clairton
SteelCo.
The Crucible Steel Co. of America agree to give ordelB and receive and pay for
one-quarter of the products of the Clairton Steel Co.
W. P. Snyder agrees to rive orders and receive and pay for one-eighth of the prod-
ucts of the Clairton Steel Co. .,,.,.
Oliver & Snyder Steel Co. agree to give orders and receive and pay for one-eighth
of the products of the Clairton Steel Co. , , „, . „ ,„
The prices to be paid for the pig iron or steel product of the Clairton Steel Co. are
to be feed quaiterfy by the board of directors of the company, to be uniform to all
the stockholders, and to be as nearly as can be ascertained general market prices
current to the trade.
It is agreed that the organization, management, and present officers of the Clair-
ton Steel Co. shall be continued during the pleasure of the board of directors, as at
present constituted, but to avoid a possible deadlock in future the board of dfrectora
SiaU consist of an odd number ana to have one director as an arbitrator, in whose
4122 UNITED STATES STEEL CORPORATION.
fairness and judgment we would have all confidence, and to decide in case diSerences
of opinion in the board of directors arise, the odd number of the board shall hereafter
be a member of the firm of J. P. Morgan & Co., of New York.
The remaining members of the board shall be named : One-half by the United States
Steel Corporation, one-quarter by the Crucible Steel Co. of America, and the remain-
ing one-fourth by W. P. Snyder and the Oliver & Snyder interests generally.
The treaaiurer of the Clairton Steel Co. shall hereafter be whoever may be at the
time the treasurer of the Camegje Steel Co. of Pittsburgh, Pa.
This agreement to go into efiect and be binding on all the parties, on its acceptance
by a resolution of the board of directors of the Crucible Steel Co. of America, duljr
attested and affixed hereto, which action must be taken prior to the 25th day of this
month.
The improvements on the property shall consist of such as are mentioned in the
original proposition, namely, 3 blast furnaces, 12 open-hearth furnaces, 1 blooming
mill, 1 billet mill (now nearing completion), also such additional improvements as
may hereafter be mutually ag^-eed upon.
The comptroller of the United States Steel Corporation is to have the privilege
of examining the books and accounts of the Clairton Steel Co. and its allied com-
panies, for the purpose of verifying the statement that the actual cost of the prop-
erties IS as is heretofore represented to us. Unless so verified as being correct, this
proposition shall at our option be null and void.
It is also agreed that we are to receive as an additional part consideration of the fore-
going subscription to the bonds, shares of stock in the Terminal Railroad & Bridge Co.
as follows, namely. United States Steel Corporation, 50 per cent; W. P. Snyder, 12i
per cent; Oliver & Snyder Steel Co., 12} per cent, and that the directors and treas-
urer be provided for in like manner as hereinbefore stipulated for the organization of
the Clairton Steel Co.
It is agreed that the moneys provided from the above sale of bonds are to be paid
out of the treasury only on the approval of the directors selected as aforesaid or by
some person or persons to be designated by them.
It is understood and agreed that the president and other officers of the Clairton
Steel Co. will not engage in new enterprises in steel business in competition with
the United States Steel Corporation during the time that they may continue in the
organization of the Clairton Steel Co. as officers or employees thereof.
It is understood and agreed that the Clairton Steel Co. certify that the list of exist-
ing contracts submitted to the United States Steel Corporation and attached hereto
is a correct and true account of obligations to be performed.
This agreement when finally concluded to be formally ratified by the finance
committee of the United States Steel Corporation, the directors of the Crucible Steel
Co. of America, the board of directors of the Clairton Steel Co., and the board of
directors of the Oliver & Snyder Steel Co., and certified copies of said resolutions
attached thereto.
Respectfully submitted.
Upon motion duly made and seconded the proposition was approved
by the adoption of the following resolution:
RESOLUTION OP THE CLAIRTON STEEL CO.
Be it resolved, That this company ratifies and approves the proposition of the United
States Steel Corporation, the Oliver & Snyder Steel Co., and W. P. Snyder to the
Crucible Steel Co. of America, dated July 10, 1903, and that the proper officers of
this company be authorized and empowered in the name and on benalf of this com-
pany to do all things necessary for the carrying the same into effect.
I, George L. Brown, secretary of the Clairton Steel Co., hereby certify that the
above is a true and correct copy of the resolution adopted by the directors of the
Clairton Steel Co. at a meeting held July 14, 1903.
George L. Beown, Secretary.
united states steel ookpoeation. 4123
January 4, 1904.
Present : W. P. Snyder (presiding) , A. W. Mellon, Herbert Du Puy,
W. G. Park, Keuben Miller, James H. Park, Frank B. Smith.
After further discussion with regard to the financial affairs of the
company, upon motion of Mr. A. W. Mellon, seconded by Mr. W. G.
Park, the following resolution was offered and adopted:
Resolved, That it is the judgment of the board that it would be for the best interest
of the creditors of this company that either a receiver in equity or a receiver in bank-
ruptcy be appointed therefor.
All of the directors presei^t" voted in favor of said resolution, with
the exception of Mr. Snyder, who stated, "Not voting." Mr. Sny-
der stated that, as Messrs. Reed, Smith, Shaw, and Seal were the
attorneys for the Union Trust Co. of Pittsburgh, the Crucible Steel
Co. of America, and the Clairton Steel Co., that outside counsel be
called in, in conjunction with said attorneys, to prepare the necessary
papers looking to receivership. No action taken.
Mr. Brown, secretary of the company, stated that as the directors
had voted to practically put the company into the hands of a receiver,
it would be proper for the directors to authorize or approve assign-
ments of accounts receivable to the Clairton Steel Co. assigned to
the Crucible Steel Co. of America by direction of Mr. W. G. Park
aggregating some $101,000, but the directors were unanimous in
their opinion that such action was not necessary, as said assignments
were made during the ordinary course of business and were proper
action on the part of the secretary.
Mr. W. G. Park stated, in connection with a note of the Oliver
Iron & Steel Co. for $34,083.56, as well as the previous note which
had been paid by the Crucible Steel Co. of America, that the note
would be paid by the Crucible Steel Co., but that they would expect
to be secured for the payment of said Oliver notes, as well as for
certain items of interest and principal on bonds of the Clairton
Steel Co., paid the Union Trust Co. January 2, 1904, such security
to come from the resolution adopted at the meeting of the directors
held December 29, 1902.
Note. — ^The^resolution'of the directors dated December 29, 1903, merely stated:
"Resolved, That the officers of this company be and are hereby authorized to procure
a, loan or loans for the purposes of thjs company, not exceeding in the aggregate
$500,000 for such time and upon such terms as they may deem proper and to sell or
pledge as security for the payment thereof, the ore and pig iron now on hand or here-
after received by the company, and for this purpose to make and enter into such
agreement of lease and other contracts as they may deem necessary and proper in
carrying out the authority hereby granted."
And on January 4, 1904, it is simply stated that Mr. Snyder stated that he' "could
not therefore sign the same " (i.e., the resolution). What action was taken is not clear.
Mat 24, 1904.
Meeting of board of directors.
Present : Frank B. Smith, Eeuben Miller, Herbert DuPuy, and W. P.
Snyder. Mr. Smith presided and D. E. Wilson acted as secretary.
>|The chairman presented to the meeting the written resign,ation of
Mr. J. H. Park as director. Mr. J. J. Campbell was elected as director
in his place. Mr. Campbell being present immediately entered upon
his duties as director.
The chairman presented the written resignations of Robert E.
Jennings and A. W. Mellon as directors. Mr. W. W. Blackburn was
31572— No. 53, pt 2—12 25
4124 UNITED STATES STEEL CORPORATION.
elected to fill the place of Mr. Jennings, and Mr. McCausland was
elected to fill the place of Mr. MeUon . Messrs. Blackburn and McCaus-
land being present, immediately entered upon the discharge of their
duties as directors.
The chairman presented the written resignation of Mr. Herbert Du-
Puy as a director. Hon. E. H. Gary was elected a director to fill the
place of Mr. DuPuy.
The chairman presented the written resignation of Mr. Reuben
Miller as director. Mr. W. E. Corey was elected a director to fill the
place of Mr. Miller.
The chairman presented the written resignation of Mr. W. P.
Snyder. Mr. A. C. Dinkey was elected a director to fill the place of
Mr. Snyder.
At the request of Mr. Smith, Mr. Campbell acted as chairman of the
meeting. Mr. Smith then presented his resignation as vice president
and director. Mr. Richard Trimble was elected a director in place of
Mr. Smith, and Mr. W. W. Blackburn was elected vice president in
place of Mr. Smith.
W. W. Blackburn was elected secretary of the company.
W. C. McCausland was elected treasurer of the company.
J. J. Campbell was elected auditor- and assistant secretary of the
company.
W. R. Conrad was elected assistant treasurer of the company.
July 14, 1904.
Present: A. C. Dinkey (president), W. C. McCausland, James J.
Campbell, and W. W. Blackburn (secretary).
On motion, the officers of the company were unanimously author-
ized to execute the following operating contract with Carnegie Steel Co.:
Carnegie Steel Co., a corporation of New Jersey, hereafter called "Carnegie" and
Clairton Steel Co., a corporation of Pennsylvania, hereafter called "Clairton hereby
agree as follows:
First. Clairton hereby leases unto Carnegie from June Ist, 1904, its blast furnaces,
open-hearth furnaces, and blooming mill, and all equipment connected therewith and
used in the operation thereof, situate at Clairton, Allegheny County, Pa., and known
as the Clairton plant.
Second. Carnegie agrees to maintain and operate said plant in a good and workman-
like manner, making all proper and needful repairs thereto, and to surrender up the
said furnaces and property to Clairton in a good condition at the expiration or termina-
tion of this lease, and as Clairton has transferred to Carnegie with said property certain
personal property, including inventories and cash assets for use by Carnegie for work-
ing capital in operating said property, Carnegie agrees upon the termination of this
lease to return to Clairton an equivalent value therefor either in cash or inventories
or other assets acceptable to Clairton.
Third. Carnegie agrees to pay Clairton as rental hereunder the net income received
by it from the operation of said plant after payment of all expenses and taxes incurred
by it in the operation and maintenance of said plant. The precise method under which
said net income shall be determined and the decision as to what constitutes net income
to be agreed upon by the auditor of Carnegie and the secretary of Clairton. Carnegie
agrees to render Clairton monthly detailed reports of operation of the property in such
form as may be satisfactory to Clairton; and also to make settlement in cash of all
amounts due Clairton in according with this section quarterly on or before the 25th
days of February, May, August, and November. In case the net result of operation
of the property should be a deficit, then Clairton will reimburse Carnegie therefor
quarterly on similar days. Carnegie agrees that in determining the net income of the
property leased hereunto, it will allow credit for sales of products and materials manu-
factured at and sold from said plant, at a selling price therefor equaling approximately
the prices which Carnegie may at that time be receiving for similar products sold under
generally similar conditions from other mills owned or operated by the Carnegie and
UNITED STATES STEEL COKPOEATION. 4125
located in the same district as is the plant leased hereunder. Carnegie further agrees
that in determining such net income in products and materials transferred from the
plant hereby leased to any other mills or plants owned or operated by Carnegie shall
be credited at a price therefor equal at least to prices it would receive if said products
or materials were sold to any company affiliated with the United States Steel Corpora-
tion, but not owned or operated by-Carne^e.
Fourth. The cost of additions, construction, and improvements made by Carnegie
to or on the property hereby leased shall, if the same be not included in determining
the net income according to section third hereof, be charged to Clairton, and Clairton
agrees to reimbxu'se Carnegie therefor quarterly on the same dates as hereinbefore pro-
vided for settling the net income: Provided, however, That Carnegie shall undertake
no such additions, construction, and improvements except under the express sanction
of Clairton.
Fifth. The lease shall continue for a period of one year from the date hereof, and
thereafter until the same shall be terminated by either party, giving unto the other
six months notice of its intention so to terminate this lease. This lease shall not be
assigned by Carnegie without the consent in writing of Clairton All matters in dis-
pute arising bwteeen the parties to this lease and agreement shall be referred to the
finance committee of the united States Steel Corporation as arbitrator, and its deci-
sion shall be final and binding upon the parties hereto.
May 1, 1905.
Present: Dinkey (president), Blackburn, McCausland, Campbell.
Sale of one-half interest in the St. Clair iron mine to Auburn Iron
Co. (which is owned by the United States Steel Corporation) author-
ized. W. P. Snyder also arranged to seU to Auburn Iron Co. his one-
half interest in the St. Clair iron mine. Leasing agreement sur-
rendered and deed executed for expressed consideration of $100,000.
Note. — After the assumption of control by the Carnegie and its ofl3.cer8, there seems
to have been nothing done of record except the charging oft of large capital expendi-
tures, real estate transfers, railroad tracking arrangements, and the payment of the
following dividends:
Per cent.
June 17, 1907 20
Sept. 14, 1908 6
Feb. 12, 1909 15
Sept. 13, 1909 10
Dec. 20, 1909 30
Jan. 9, 1910 , 20
Oct. 31, 1910 10
Mar. 20, 1911 10
H. C. FRICK COKE CO.
The certificate of incorporation is dated February 8, 1882. The
original incorporators were: Andrew Carnegie, 1,000 shares; Thomas
M. Carnegie, 500 shares; Henry Phipps, jr., 500 shares; H. C. Frick,
680 shares; E. M- Ferguson, 660 shares; Walter Ferguson, 660 shares.
The capital stock was originally $2,000,000, and the number of
shares 40,000 of the par value of $50 per share; but on November 7,
1883, the capital stock was increased to $3,000,000, and on January 23,
1889j it was increased to $5,000,000, and on December 31, 1894, it
was increased to $10,000,000, and on March 30, 1903, upon the con-
solidation of various companies named below with the Frick Co., the
capital stock was made $20,000,000.
March 16, 1882.
Meeting of stockholders.
Certain real estate and personal property as shown in schedule A,
commencing on folio — of this book, the same being necessary for the
furpose of the business of this company, was purchased from H. C.
rick & Co. for $1,775,000— $100,000 in cash and $1,675,000 in cash
of the H. C. Frick Coke Co., to wit, 33,500 shares.
Certain real estate and personal property as shown in schedule B,
commencing on foUo — of this book, the same being necessary for the
purpose of this organization and the business of this company, was
purchased for $225,000 from Carnegie Bros. & Co. (Ltd.)— $100,000
m cash and 2,500 shares of the capital stock of the H. C. Frick Coke
Go.
September 27, 1883.
Meeting of stockholders.
Properties of A. A. Hutchinson and of the Connellsville Gas Coal Co.
purchased.
March 30, 1903.
Special meeting of stockholders.
Agreement of consoUdation and merger made this 28th day of
March, 1903, between the H. C. Frick Coke Co., United Coal & Coke
Co., McClure Coke Co., Continental Coke Co., American Coke Co.,
Southwest ConneUsviUe Coke Co.:
I. TJtie name of the consolidated corporation shall be H. C. Frick Coke Co.
II. The board of directors shall consist of 11 members: C. M. Schwab, E. H. Gary,
Thomas Lynch, E. J. BuflBngton, W. P. Palmer, D. J. Kerr, W. D. Schiller, D. M.
Glemson, W. W. Blackburn, Thomas Morrison, D. H. Coble. President, Thomas
liynch; D. H. Coble, secretary: Philip Carse, treasurer
III. Stockholders' meeting snail be held on the third Tuesday of January.
IV. The capital stock shall be $20,000,000 of 200,000 shares of $100.
V. The manner of converting the capital stock of each of the said companies parties
hereto into that of the new corporation shall be aa follows:
Sliares.
H. C. Frick Coke Co. to receive 118,200
United Coal & Coke Co 14,340
McClure Coke Co 11,700
Continental Coke Co 9, 440
American Coke Co 23, 460
Southwest Connellsville Coke Co 21,860
4126
UNITED STATES STEEL COEPOKATION. 4127
VI. The new corporation shall be perpetual.
VII. The said consolidated company shall be subject to and regulated by the cor-
porate rights, privileges, franchises, duties, and obligations existing under and by
virtue of each, any ,_ and all of the several articles of association and letters patent c^
said companies parties hereto, and the several acts of assembly principal and supple-
mentary relating to any and all of the said companies parties hereto.
January 14, 1908.
Annual meeting stockholders.
Purchased from George I. Whitney, by agreement dated November
12, 1907, 15,000 shares of the capital stock of the Hostetter Con-
nellsville Coke Co., or so much thereof as shall be delivered to the
company by November 27, 1907; consideration, $120 per share,
payable one-fifth in cash and balance in four equal installments.
November 23, 1910.
Annual meeting stockholders.
Resolved, That the consent of the stockholders of this company be, and it is hereby,
given to the exchange between this company and the trustees of the "Coke Trust"
under the will of William Thaw, deceased, late of Pittsburgh, Pa., whereby this com-
pany is to convey to the said trustees 215,202 acres, more or less, of what is known as
the Connellsville or 9-foot vein of coal located in Mount Pleasant and Union Town-
ships, Westmoreland County, and North Union Township, Payette County, Pa.,
with mining rights, in exchange for an equal acreage of the same vein of coal similarly
located. Such exchange being advantageous to this company in straightening the
dividing lines between the coal owned by this company and the coal owned by said
trustees, and enabling this company to mine its coal more advantageously and econom-
ically: And be it further —
Resolved, That the consent of the stockholders of this company be, and it is hereby,
given to the execution of a lease by the proper officers of this company from the trus-
tees of the "Coke Trust" under the will of William Thaw, deceased, whereby this
company acquires about 600 acres of Connellsville or 9-foot vein of coal situate in
Mount Pleasant and Union Townships, Westmoreland County, Pa., out of the minabl©
coal remaining unmined of about 350 acres included in the present Heckla No. 2
1 ease dated 20th June, 1890, and the several supplements thereto. Said lease to be
operative for 26 years from 1st of January, 1911, or until all the said coal is exhausted.
November 25, 1885.
Meeting of directors.
On motion,
Resolved, That this company purchase one-half of the capital stock of the South-
west Coal & Coke Co. for the same price and upon the same terms and payments as is
mentioned in relation to the sale of the other half of said stock in an agreement (a
copy of which follows these minutes) by H. C. Prick and others to William R. Stirling,
trustee of the Joliet Steel Co., of Chicago, 111., and to Jay C. Morse, trustee of the Union
Steel Co. of Chicago, 111., dated October 31, 1885; and the officers of this company
are hereby authorized to execute and deliver such contracts and obligations as are
necessary to such purpose and to report thereon at the next meeting of this board.
The contract to be made in accordance with this resolution shall contain the same
provision as to rescission as is contained in said contract with said Stirling and Morse,
trustees, respectively, for the Joliet and Union Steel Cos.
Agreement made this 31st day of October, 1885, between H. C.
FricK E. W. Ferguson, and Walter Ferguson, of Pittsburgh, Pa.,
party of the first part, WUliam R. Stirling, as trustee of the Joliet
Steel Co., of Chicago, 111., party of the second part, and Jay C. Morse,
as trustee of the Union Steel Co., of Chicago, party of the third part:
The parties of the first part agree to procure the transfer of $250,008
worth or 2,500 shares of fully paid-up capital stock, of the Southwest
Coal & Coke Co. to each of the other parties hereto or to such nom-
inees, in such proportions, as they shall severally designate.
4128 UNITED STATES STEEL COEPOEATION.
The said stock shall be actually transferred to the second and third
parties or to the trustee hereinafter named as collateral security
lor the payment of the deferred installments of purchase money,
one-third of such stock to secure each installment of purchase money.
The parties of the first part guarantee that the Southwest Coal &
Coke Co. has 2,200 acres oi unmined coal and 400 acres of surface.
Consideration of payment of $150,000 — $25,000 on execution of
this agreement, balance in three equal payments at 18, 30, and 42
months.
Parties of the second and third parts are to nominate the president
and two directors of the Southwest Coal & Coke Co., or three direc-
tors and the secretary and treasurer (such secretary and treasurer
not to be a member of the board), and they further covenant that
such person as may be mutually agreed upon by all parties hereto
shall he selected as the seventh director.
In consideration whereof the party of the second part agrees to
procure the assignment to the parties of the first part and third
parts of one- third interest in, or 1,000 shares of the fully paid-up
capital stock of the Chicago & ConneUsville Coke Co., having at
least 383 acres of unmined coal and 20 acres of surface.
The board of managers of the Chicago & CoxmellsvUle Coke Co. is
to be changed so that each party wfll nominate one-third of the
board.
In consideration wherefor the parties of the first and third parts
agree to pay the sum of $86,666.66 in cash or promissory notes.
Before selling any of the stock to outsiders it is agreed that the same
will be offered to the other parties to this agreement. And it is
mutually agreed by the parties to this agreement that any and all
rebates, commissions on freight rates, or allowances of any kind that
can be or are obtained in any connection with the manufacture, ship-
ping, routing, or handling of the coke or any of it made at the South-
west Coal & Coke Co. works or at the works of the Chicago & Connells-
ville Coke Co. (Ltd.) shall go into the treasiiry of the respective com-
pany at whose works the coke was made, without regard to the rate
or by whom such sums or amounts were or are collected, whether by
the H. C. Frick Coke Co., the Southwest Coal & Coke Co., the Chi-
cago & ConneUsviUe Coke Co. (Ltd.), the Joliet Steel Co., the Union
Steel Co., or any officer or employee connected therewith, or any other
person whatsoever for their benefit.
It is further agreed that all parties hereto shall use their best efforts
to obtain rebates, concessions on freight, or allowances of any kind as
above set forth for the purpose herein specified.
January 27, 1886.
Meeting of directors.
Contract between this company and the Chicago Eolling Mill Co.,
dated December 17, 1885, ratified.
Carnegie, Phipps & Co. (Ltd.) succeeded to the Louise Furnace Co.
(Ltd.) and the Pittsburg Bessemer Steel Co. (Ltd.), those companies
having gone into liquidation; and the contracts with those companies
are to be carried out with Carnegie, Phipps & Co.
united states steel, ooeporation. 4129
June 7, 1887.
Meeting of board of directors.
Resignation of H. C. Frick as president. In letter to Henry
Phipps, jr., John Walker, et al., he says, in part (under date June
7, 1887) '
The losa to the coke company (caused by granting concesBions to laborers) may be
far more than made up in your steel interests, but I object to so manifest a prostitu-
tion of the coke company's interests in order to promote your steel interests. Whilst
a majority of the stock entitles you to the control, I deny that it confers the right to
manage so as to benefit your interests in other concerns at the loss and injury of the
coke company in which I am interested.
Very respectfully, yours, H. C. Frick.
Henry Phipps was elected president and John Walker was elected
director.
November 5, 1887.
Meeting of directors.
Mr. Phipps resigned as president and Mr. Frick was reelected.
Mat 11, 1888.
Meeting of directors.
The president reported that Mr. Newell objected to changing the
original agreement regarding the proposed new coke works on the
Bowers and Leighty tract, but said that we would not find them
unreasonable or arbitrary in case we should fail to live up to the
agreement to the letter; that they could not well agree to the modi-
fication asked without violating the "interstate" law.
October 24, 1888.
Meeting of directors.
Purchase of 250 shares of Pittsburg-Connellsville Gas, Coal & Coke
Co., at $150 per share, ratified.
Purchase of Charles Davidson interest in what is known as the
Burroughs and Scott coal contracts for $15,000 and the money hereto-
fore advanced by this company, namely, $5,000; $75; $8,000.
November 28, 1888.
Meeting of directors.
Purchase of the property of the Pittsburg & Connellsville Gas &
Coke Co. for $145,800 and assumption of debts.
March 28, 1889.
Meeting of directors.
Purchase of J. M. Schoonmaker Coke Co. property for $650,000 and
payment of $130,000 incumbrances.
Purchase of coal lands of J. M. Schoonmaker.
Compensation paid to Messrs. Boiox and Reed $25,000.
Purchase of J. M. Thompson coal and mining rights, as per deed
dated June 8, 1886, for $60,000.
May 20, 1889.
Meeting of directors.
Whereas this company owns $100,000 of the capital stock of the
Chicago & Connellsville Coke Co., whose entire capital stock is
$300,000, Resolved, That the president be authorized to purchase
$200,000 of said stock and pay therefor $200,000 first-mortgage bonds
of this company.
4130 united states steel cobpokation.
June 21, 1889.
Meeting of directors.
Purchase of Connellsville Coke & Iron Co., in Fayette County, Pa.,
authorized for $3,000,000.
July 16, 1889.
Meeting of directors.
Contract for purchase of Connellsville Coke & Iron Co.
October 1, 1889.
Meeting of directors.
Purchase of Kyle Coke Co.
Purchase of Fayette Coke & Furnace Co.
October 17, 1889.
Meeting of directors.
Purchase of one-quarter interest in "Oliver property" from A. S.
Morgan, James B. Morgan, and Mrs. Lottie L. Crossland, consisting
of 326.514 acres in Unity Township, Westmoreland County, Pa., for
the sum of $48,405.62.
December 26, 1889.
Meeting of directors.
Purchase of aU the capital stock (20,000 shares) of the Coke Co.
of Connellsville for $420,000, which owns about 1,188 acres of coal
and about 276 acres of surface.
June 10, 1890.
Meeting of directors.
Purchase of all shares of the J. A. Strickler Coke Co. (Ltd.), for
$17,000. The said company owned 88^ acres in Mount Pleasant
Township and 7 acres of land in Hempfield Township, Westmoreland
County.
October 24, 1890.
Meeting of directors.
Purchase 99 shares capital stock of the United Coal & Coke Co. for
$4,943.36.
Purchase one-half of capital stock of Hostetter-ConnellsviUe Coal
Co. for $10,000, said capital stock being $1,500,000. The company
owns 3,000 acres of coal, subject to mortgage, $1,500,000. No bonds
are to be paid untU the end of 50 years, uiuess paid out of sinking fund,
hereby created. In addition to the undivided one-half of the stock,
a certain number of shares are to be put in escrow under an agreement
with George I. Whitney, jr., to become the property of the Frick Coke
Co., in order to give them control upon the deatn of George I. Whitney
or at any time tnat he may dispose of any of its stock.
October 14, 1892.
Meeting of directors.
Purchase P. H. Moore's interest in the Redstone Coke Co. (Ltd.),
(this company owning the other two-thirds).
Purchase of 40 shares Redstone Water Co.
united states steel coeporation. 4131
October 19, 1892
Meeting of directors.
Copy of letter from Frick to Thomas Lynch, general manager,
recommending purchase of Pressley H. Moore's interest in Connells-
ville region.
Letter from Thomas Lynch, general manager, to Frick, to the effect
that the only coal the McClure Coke Co. could get in that neighbor-
hood was this 271 acres of coal, saying in part:
The only coal left now in that neighborhood which they could get is the coal owned
by the Messrs. Ferguson, something like 271 acres. I have understood on several occa-
sions that they had been negotiating with the Fergusons for the purchase of this coal,
but I know nothing about the price asked or the price offered — if any offer was made.
This Ferguson coal, as you are aware, adjoins our Standard property and would all work
advantageously to the Standard slope. At the present time we have not got over 10
years life for the Standard slope. Of course we have lots of coal for the Standard plant —
but what I mean to say is that the coal available for the same that can be worked through
the slope economically and advantageously will be exhausted within the next 10 years,
and rather than haul coal from the Standard field to the slope it would pay us to
abandon the 170 ovens at the slope. Now, this Ferguson coal would work to the slope
economically — in fact our headings from the slope are already into the Ferguson coal
a distance of nearly 300 feet. Therefore I would say if there is no probability of the
McClure Coke Co. buying the Ferguson coal, I think we should head them off if it can be
doneataprice within reason . Leaving out the McClure Coke Co . entirely, and looking at
it solely as a question of prolonging the life of the slope, I think it would be good policy
for the Frick Coke Co. to purchase the Ferguson coal. Much more do I regard it to the
interest of the Frick Coke Co. to own that coal when we consider that within two years at,
the very outside the Hazlett plant of the McClure Coke Co . of 261 acres will be exhausted
and no coal in that vicinity which they can get if we own the Ferguson. The coal in
that locality is very good and the vein is thicker than the average up in that vicinity.
We would be able to recover at the very least 10,000 tons of coal per acre from that
Ferguson tract, and rather than lose it 1 would recommend its purchase at $1,000 per
acre. That would mean 10 cents per ton on the coal. In the Pocahontas region all
the coal and coke operations pay 10 cents per ton royalty for their coal and have all
their improvements and equipment to build. Here we would already have the im-
provements and the equipments at the Standard slope for mining it, and, as I have
already said, within the next 10 years that equipment will be valueless unless we
purchase the Ferguson coal.
Copy of letter from Robert Ramsey to Thomas Lynch, general
manager, as f oUows :
Mount Pleasant, Pa., Octobers, 1892.
Thomas Lynch,
General Manager.
Dear Sir: In regard to the Ferguson tract of coal on the south side of the Standard
property, the time is almost at hand when the McClure Coke Co. must purchase it or
close down their Hazlett works for want of coal , which of course would put that plant out
of competition in the market. This coal will all drain to the Standard mines, and the
hauling will be in favor of the loaded cars. Its relation to the Hazlett shaft is just the
reverse — consequently it is of more value to us than to them. There are several im-
portant reasons why we should own this property in addition to those just stated.
One is, that it being to the dip, we would have to take a considerable portion of their
mine water and we would have to protect ourselves from having it all to pump as long
as the Standard mine is in operation by a boundary or rib of coal from 50 to 100 feet
thick all along the line, and this would be a total loss to our company, as it could never
be mined without danger of being flooded, especially so after the Hazlett shaft is finally
abandoned, which will take place before the Standard property is exhausted. I can
not impress upon you too strongly the necessity of apoliqy of avoiding as far as possible
this particular danger. Another reason for us acquuring this coal is that our slope will
not have coal for more than nine years at the outside, which means the closing down
of at least 200 ovens at the plant, or supplying them from the shaft by operating day
and night, which would cost more for operating.
Altiiough the Standard property is large in area, yet considerable of the coal is to
the dip, and it may become a serious question of supplying all the ovens if we do not
4132 UNITED STAGCES STEEL COEPOEATION.
have a fair proportion of the coal to the rise. I do not know what the McClure people
can afiord to pay for this property, but unless they make a.fooliah bargain, we can at
least afford to pay as much for it as they can.
Yours, truly, Robert Ramsey, SuperirUer^ent.
March 14, 1895.
Meeting of directors, held in the board room of the Carnegie Steel
Co. (Ltd.).
Present: John Walker, H. M. Currie, Thomas Lynch, G. B. Bos-
worth.
Mr. Lynch stated that the object of this meeting was to take up
the question of labor in the Connellsville coke region; that he had
telegraphed the situation to H. C. Frick, at Palm Beach, Fla., on the
13th instant, and received the following answer:
Home Monday morning, if prompt action necessary make such arrangement as
you thiak best after consultation eloquent (John Walker), earth (John G. A. Leish-
man), Eddy (H. M. Currie); any change, advise asteroid (So. West) cavil (Hostetter)
early. No sig.
Mr. Lynch submitted a schedule of wages, attached hereto, which
he thought should go into effect April 1, 1895, and in his judgment
he thought similar notices should be posted at each of the works of
the H. C. Frick Co. and allied companies at noon of March 15, 1895.
After a discussion of the subject, Mr. Walker made a motion, sec-
onded by Mr. Corey, that the schedule of wages and the suggestions
of Mr. Lynch as to the time of posting be adopted.
Notice. — On and after April 1, 1895, and until further notice, the following wages
and prices of labor will be paid at this plant:
Mining and loading seam and rib coal, per 100 bushels $0. 90
Mining and loading heading coal, per 100 bushels 1. 02
Mining and loading wet heading coal, per 100 biishels 1. 10
All coal to be mined by measurement, at the rate of 2,688 cubic inches to the bushel.
The wagons used in the mine shall be as nearly uniform as practicable, and the capac-
ity branded on each. To be capacity and credit to the miner at the branded capacity,
loaded wagons shall not be less than level full at the pit mouth or tipple, the place
where they are inspected' and the account taken.
Drivers and rope riders (shafts and slopes), per full run $1. 84
Drivers and rope riders (drifts), per full run 1. 75
Tracklayers, blasters, and timbermen (shafts and slopes), per day 1. 84
Tracklayers, blasters, and timbermen (drifts), per day 1. 75
Cagers, per full run 1. 84
Trappers, per full run 58
Dumpers and tipple men^ per full run 1. 50
Assistant tracklayers, inside laborers, etc., per day 1. 50
Drawing coke, per 100 bushels charged 50
Leveling, jjer oven 09
Chargers with horses and mules, per oven 03}
Other chargers, per day 1. 50
Charging engineers, per day 2. 10
Teamsters, per day 1. 40
Carters, per day 1. 25
Yard laborers, per day 1. 20
Forking cars over 40,000 pounds capacity 1-10
Forking cars 40,000 pounds and less capacity 1. 00
Forking large open-top cars from yard 1-25
Forking medium and small open-top cars from yard 1.10
Payments semimonthly, same dates as heretofore.
H. C. Feiok Coke Co.
united states steel ooe.pokation. 4133
Mat 9, 1895.
Meeting of directors.
Purchase of one-quarter interest, or 150 shares, of the capital stock
of the Youngstown Coke Co. (Ltd.) standing in the name of H. O.
Bonnell, deceased, from the Mahoning Valley Iron Co. (this company-
owning the other three-quarters already).
The Mahoning Valley Iron Co. agreed to purchase from this com-
?any all the coke it may require for use m its blast furnaces at
'oungstown, Ohio, at the rate of $1.15 per ton from April 1, 1895,
to July 1, 1895, and at the rate of $1.35 per ton from July 1, 1895, to
January 1, 1896, and thereafter at market prices; three-fourths of
said coke bill to be paid in cash and the other one-fourth to be cred-
ited on the amount unpaid on account of the 150 shares of stock of
the Youngstown Coke Co., the total sum to be paid for such stock
being $47,000.
May 11, 1895.
Meeting of directors.
All assets of Youngstown Coke Co. purchased for $185,000.
JuLT 8, 1895.
Meeting of directors.
Purchase of all McClure Coke Co.'s coal lands and improvements,
620 acres, on the following basis: $850 per acre for each acre of
unmined coal owned by the McClure Coke Co., which is to include
all improvements and equipment, and $200,000 for the 620 coke cars.
Two hundred and seventy-five acres, 131 purchase of coal land of
this company, exchanged for same amount or Lobinger tract of Wil-
Ham Thaw, deceased.
September 30, 1895.
Meeting of directors.
Purchase of McClure Coke Co. property and all other interests on
following basis: Nine hundred dollars per acre for all its unmined
and workable coal (which includes surface), $200,000 for all its 625
cars.
November 9, 1895.
Meeting, of directors.
Agreement with George R. Sheldon, New York Ci^, to purchase
350 first-mortgage bonds of the Fairchance Furnace Co., 26 second-
mortgage bonds of the said company, and all the capital stock of
the said company, amounting to $220,000, which would vest all
assets except 49 outstanding second-mortgage bonds. The consider-
ation is to oe $177,000 in cash.
January 22, 1896.
Meeting of directors.
Mr. Gates offered the Eevere coal tract of the Illinois Steel Co. to
H. C. Frick Coke Co. for $1,000 per acre. Mr. Frick was of the
opinion that the price was too high.
The securities of the Troy Steel Co., being first-mortgage bonds
$20,000 and certificates of debentures $4,526.76, which were, in set-
tlement of our claim against the Troy Steel & Iron Co. for $6,526.76,
examined by the members of the board and approved.
4134
UNITED STATES STEEL COKPOEATION.
June 30, 1897.
Meeting of directors.
H. C. Frick resigned and Thomas Lynch was elected president.
September 28, 1898.
Meeting of directors.
Union Supply Co. paid 366§ per cent dividends from January 1 to
October 1, 1898.
December 28, 1898.
Meeting of directors.
Union Supply Co. paid 466S per cent dividends from January 1 to
December 28, 1898.
January 28, 1899.
Meeting of directors.
The statement was made in discussion by President Lynch
that the property of the company would be worth more than
$45,000,000 on the basis of estmaating $1,000,000 as the value of
1,100 acres of coal, and a statement was made by Mr. Frick to the
effect that the property of the company would be worth $40,000,000
on the same basis of computation.
February 1, 1899.
Meeting of directors.
Purchase of one-half of the capital stock of the Calumet. Coke Co.
(this company being the owner of the other half) from Mr. M. K.
Salsbury for $185,000.
September 27, 1899.
Meeting of directors.
Purchase of three undivided interests aggregating 71.244 acres of
of coal from A. C. Overholt, Gertrude Torrence, and the Torrence
heirs, known as the Banning coal property.
Mr. Lynch. There are 411 acres of coal m the above purchase. In
addition we have previously purchased 249 acres. The McClure
Coke Co. has purchased 205 acres of coal, making a total of 865 acres
purchased this year.
During the summer we contracted for 120 double blocks of tene-
ment houses as follows, all of which except the last named 26 are
completed and occupied:
Number 1
of double!
blocks. I
Works,
Leisemlng No. 3..
Mammoth
Central
Central
Wynn
Ouphant
le
1
4
6
1 j Oliphant.
15 j Leisenring No. 2.
5 I Youngstown
Contract
price,
each.
{550
550
550
730
658
600
658
550
550
Number
ol double
blocks.
128
Works.
Standard
Mutual
Leisenring No. 1
Calumet
Adelaide
United
Contract
prlM,
each.
$600
550
560
618
In addition to the above we built 66 one-story, two-room houses
or shanties at an average cost of $105 per block.
UNITED STATES STEEL COEPOBATION. 4135
OOTOBEE 25, 1899.
Meeting of directors.
Contracts with American Steel Hoop Co. for full requirements of
four furnaces for the year 1900 at 15,000 tons per month at $2.50
.at ovens; Duluth Furnace Co. to May 1, 1900, at $7 delivered, which
nets us $3.25 at ovens; Corrigan, McKinney & Co., for Scottdale
furnace, full requirements $3 fcst six months and $2.25 the last six
months of 1900 at ovens; Lackawanna Iron & Steel Co. for full
requirements of all their plants during 1900, estimated at 50,000 tons
per month, at $4.55 delivered, which will hiake an average of $2.65
per ton net at ovens; Federal Steel Co., for 35,000 tons per month
for consumption at Lorain and Chicago during the year 1900, at $2.60
per ton at ovens; Home Valley L:on Co., for full requirements of
furnace for month of January, 1900, at $3 at ovens — the lease of
this company for the furnace expires February 1, 1900; Andrews
and Hitchcock's two stocks for the year 1900 at $2.50 at ovens.
Reading Iron Co, contract has been extended from July 1 to Octo-
ber 1 of next year, and contract made for five additional cars per
day from October 1, 1899, to October 1, 1900, at $4.60 delivered
Cleveland, at $2.75 at ovens.
Mr. Lynch. There is another matter that I would like to submit
to the board of an expression or instructions. While the Carnegie
Steel Co. (Ltd.) has been paying us each month for the coke we smp
them, at the price at which it was billed, they have paid the money
"on account," for the reason, it is stated, they have been advised
by Mr. Carnegie that he made a permanent contract with Mr. Frick
at a fixed price per ton, commencmg January 1 last.
We have no record of any such contract, and I have repeatedly so
informed the proper officers of the Carnegie Steel Co. (Ltd.). There-
fore we have been billing the coke from month to month at what we
regard as a fair price to the Carnegie Steel Co. (Ltd.) under all the
circumstances. The first quarter of the year we charged $1.45, the
second quarter $1.60, and for the balance of the year we have been
charging $1.75 f. o. b. cars at ovens. The claim of the Carnegie
Steel Co. (Ltd.) is that the price should be only $1.35 under the con-
tract alleged to have been made by Mr. Carnegie and Mr. Frick.
Mr. Lauder. I think that is a question between Mr. Frick and
Mr. Carnegie.
Mr. Frick. Mr. Carnegie and I had considerable talk about what
price of coke should be for, as he called it, "a permanency." For the
sake of harmony I was personally willing to agree to almost anything.
I am willing to talk over the matter with Mr. Carnegie at any time.
Mr. Lynch, what action do you wish the board to take in this matter ?
Mr. Lynch. I think the board should take some action. My sug-
gestion is that this resolution or a similar one should be adopted.
Mr. Frick. Mr. Secretary, read the resolution.
Resolved by the board of directors o/ this company, That the president be authorized
and instructed to notify the Carnegie Steel Co. (Ltd.) that the existence of any con-
tract is denied, and that no claim to settle in_ accordance with the terms of the alleged
contract for past or present or future deliveries of coke to the said Carnegie Steel Co.
<Ltd.) will be recognized or entertained by this company.
Mr. Frick. Does the board wish this resolution adopted ?
Mr. Walker. I think some action should be taken.
Mr. Lynch. I move that the resolution just read be adopted.
4136 UNITED STATES STEEL, COEPOKATION,
Mr. Walker. I second the motion.
Mr. Fkick. Gentlemen, you have heard the resolution and the
motion; are there any remarks ?
Mr. Laudee. Of course I would naturally dissent from any action
of that kind. I thiak it is entirely a question between Mr. Frick
and Mr. Carnegie and that they should settle it.
Mr. Frick. I have no authority to make contracts for the F. C.
Frick Co.
Mr. Lauder. You and Mr. Carnegie represent a vast majority of
stock in the two companies and if you two can not fix the matter, it
is a strange thing.
Mr. Frick. I have had a great deal of talk about the matter with
Mr. Carnegie personally. I think this resolution is perfectly proper.
I have no authority to make contracts. We have by-laws, and they
provide who should make contracts.
Mr. Lauder. Let me look at the resolution. It seems too much
like a declaration of war. Don't you think we had better leave the
matter for Mr. Frick and ^Mr. Carnegie to settle ?
Mr. Lynch. I think the board should take action in the matter.
Mr. Frick. All in favor of the motion say aye.
(Responded to by Messrs. Lynch, Walker, and Bosworth.)
Mr. Frick. The motion is carried.
Mr. Lauder. I wish my dissent recorded. I think it should be
settled by Mr. Frick and Mr. Carnegie.
Mr. Frick. I am chairman of the board of both the coke company
and Carnegie Steel Co., and I have no authority to make contracts.
We have officers for that purpose. Mr. Lynch is president of the
coke company and Mr. Schwab is president of the steel company.
Mr. Lynch and Mr. Walker have no interest in the steel company and
they would naturally object to me making any contracts for the sale
of coke.
Mr. Lynch. I say verily I would not be satisfied to have Mr. Car-
negie and Mr. Frick fix the price to be paid for coke by the Carnegie
Steel Co. I think the stockholders in the coke company who have
no interest in the steel company are also entitled to a voice in the
matter.
Mr. Walker. If we were aU evenly interested in the steel com-
pany it would be more a matter of sentiment, the accounts would
show the proper division; each ought to be on its own bottom, as it
were, in a fair way.
Mr. Frick. I would like to say that in looking over the accounts
I notice that the Carnegie Steel Co. take 34 per cent of the Frick
actual make of coke in August, but not that percentage of their total
shipments. They own a httle more than 30 per cent of the stock,
so that they had close to what was equal to their stock.
Mr. Walker. As long as I am a member of this board I feel that
I should at least be consulted on these matters, and even as a stock-
holder, as I have a large proportion of what I am worth in the coke
company, and as I have no interest in the steel company, from that
standpoint, while I think that the Carnegie Steel Co. should not pay
the highest price, yet I feel they should get a fair average price.
That is my individual opinion, but I would rather take a little less,
but not much less, than have any feeUng in the matter.
UNITED STATES STEEL COBPOEATION. 4137
Mr. Lauder. You need not have any feeling at all. It is a question
that can be fixed without any trouble. But I think if it had not been
for the Carnegie Steel Co. the coke company would not be as big a ,
conipany as it is to-day.
Mr. Frick. I don't know about that.
Mr. Lauder. WeU, that is a matter of opinion. That is my
opinion and you can give yours. That is all right. Through good
times and bad the coke company has been supported by the Carnegie
Steel Co. The question is surrounded by a great many circumstances
that should be taken into consideration. If you and Mr. Carnegie
win take it up, I am sure I would be delighted to submit it to arbi-
tration.
Mr. Walker. It strikes me that that would protect my interest
nearly as well as they can be protected.
November 22, 1899.
Meeting of directors.
Furnace contracts with —
M. A. Hanna & Co., for full requirements, |2.60.
Pickands, Mather & Co., $2.60.
Home Iron & Steel Co., for fuU requirements, $2.60.
National Steel Co., for 1,000 tons per day, $2.60.
Salem Iron Co., 4,000 tons per month, $2.75.
Bethlehem Steel Co., for fml requirements, $4.75 at South Beth-
lehem (nets $2.95 at ovens).
With McNair & Decamp, Missouri furnace, for full requirements,
$5 at East St. Louis, equivalent to $2.75 at ovens.
Northwestern Iron Co., for full requirements, $2.75 at ovens.
With South Chicago Furnace Co., for full requirements, $5 at
Chicago, equivalent to $2.75 at ovens.
Riverside Iron Works, for full requirements, 6,000 to 9,000 tons
per month, $3 for first half and $2.50 for last half of 1900 at ovens.
Spearman Iron Co. and Sharpsville Furnace Co., for full require-
ments, both $3 at ovens.
Also we have contracted with Jones & Laughlin (Ltd.) for 10 cars
per day from October 7, 1899, to July 1, 1900, $3 at ovens.
The contracts for the requirements of the Republic Iron & Steel Co.
furnace originally made for the first six months of 1900, previously
reported to the board, have been extended for the entire year; price,
$2.60 at ovens.
It was stated that no contract had been made with the Carnegie
Steel Co., and Mr. Lynch suggested a price of $2.50.
Mr. Lynch. My idea is $2.50 per ton. I say that because $2.50
is the lowest price at which we have made any contract for the year.
I figure that we will receive on the business we have taken for the year
an average of fully $2.75 and in view of that I do not think that $2.65
would be an unreasonable price for the Carnegie Steel Co. to pay.
Mr. Walker. I would feel that as they are such large customers in
good and bad times, and I expect we get quicker delivery and better
service from our cars, they ought to have a clear preference, but not
more than would denote a clear preference. From that standpoint I
would be willing to make the price a little lower than $2.50, say $2.35
or $2.40, for instance.
4138 UNITED STATES STEEL, COEPOEATION.
It was resolved that the matter be referred to the presidentjwith
power to take the matter up with the president of the Carnegie Steel
Co. (Ltd.), with the understanding that any arrangement they may
make be subject to the approval of this board.
January 10, 1900.
Meeting of directors, held at the Carnegie Building, Pittsburgh, Pa.
Present: H. C. Frick, Thomas Lynch, George Lauder, Thomas
Morrison, James Gayley, D. M. Clemson, and A. M. Moreland.
On motion, James Gayley was chosen temporary chairman of the
newly elected board, which met for organization, and M. M. Bosworth
was appointed secretary of the meeting.
ORGANIZATION OF NEW BOARD.
On motion, Thomas Lynch was elected president; W. C. Magee,
vice president; G. B. Bosworth, vice president and treasurer; and
M. M. Bosworth, secretary, of the company, for the ensuing year.
Mr. Lynch. Is there any business before the meeting ?
Mr. Lauder. I wish to present a resolution rescinding the resolu-
tion adopted by the board of directors of this company on October 25,
1899. Will the secretary please read that resolution:
Resolved by the board of directors of this company, That the president be authorized
and instructed to notify the Carnegie Steel Co. (Ltd.) that the existence of any contract
is denied, and that no claim to settle in accordance with the terms of the alleged con-
tract for past or present or future deliveries of coke to the said Carnegie Steel Co. (Ltd.)
will be recognized or entertained by this company.
Mr. Lauder. I now move that the following resolution be adopted :
Resolved, That the resolution disapproving the agreement made by our late chair-
man with the Carnegie Steel Co. (Ltd.), and which was in operation for the first three
months of the year 1899 be hereby rescinded and the action of the chairman in making
fiuch agreement is hereby approved.
Mr. Friok. I enter my protest against a resolution of that kind
being adopted by this board. There was no agreement consum-
mated by the late chairman of this company with the Carnegie Steel
Co. (Ltd.). This board, of course, as constituted can pass any reso-
lution it pleases in the interest of the steel company, but as directors
of this company we must see that the minority stockholders not
interested in the steel company are protected, and that the steel
company pay a fair market price for its coke. Therefore I enter
my protest against passing this resolution.
Mr. Lauder. Do you wish that put in the minutes ?
Mr. Friok. I do.
Mr. Lynch. I would like to ask if there is a copy of that agreement ?
Mr. Friok. That is it. Produce your agreement. You can not
confiscate the property of the minority stockholders. If a contract
exists with the coke company, produce it.
Mr. Lauder. I do not propose to discuss it. I wish the board to
act on this resolution. I have given you a previous resolution,
passed by the board, and here is a resolution rescinding that resolu-
tion.
Mr. Friok. I think the directors of the Frick Coke Co. should
know what they are voting on. What is the agreement ?
UNITED STATES STEEL OOBPOEATION. 4139
Mr. Lynch. As I understand the matter, Mr. Lauder's resolution
merely rescinds the former resolution.
Mr. Laudeb. That is right.
Mr. MoBELAND. I second the motion.
Mr. Lynch. Are there any further remarks? It has been moved
and seconded that the resolution submitted by Mr. Lauder be
adopted.
Mr. Lynch. I suggest that th6 secretary call the roll and record
the vote of each member.
Mr. Lynch. No.
Mr. Fbick. No.
Mr. Laudee. Aye.
Mr. MoBRisoN. Aye.
Mr. Gayley. Aye.
Mr. Clemson. Aye.
Mr. MoRELAND. Aye.
Noes, 2; ayes, 5; total votes, 7.
Mr. Lynch. The resolution is adopted.
Mr. Fbick. I desire my protest recorded.
Mr. Lynch. I also wish my protest recorded..
Adjourned.
Januaey 24, 1900.
Meeting of directors.
The President. I wish to report a couple of contracts for furnace
coke, not previously reported to the board:
With Borden Iron Co., for their requirements February 1 to
December 31, 1900.
With Spring Valley Furnace, Wisconsin, for their requirements of
its monastery coke for the year 1900, at $3 per ton at ovens.
Contracts approved.
Mr. Fbick. Mr. President, what is the market price for Connells-
ville furnace coke to-day?
The Pbesident. $3.50 per ton at ovens.
As our annual report will not be out for some time, I desire to give
the board some idea of lessors' business.
We shipped 385,201 cars, or 7,407,956 tons of coke. Of that
amount, 5,916,984 tons we manufactured in our own ovens; 643,480
tons purchased; and 847,492 tons from the Southwest Connellsville
Coke Co.
On the 1st of January, 1900, we had 87 acres more coal than we
had on January 1, 1899. We purchased during the year 1899, 925
acres and mined 838 acres, leaving the unmined coal, January 1,1900,
38.715 acres. The unmined coal, Januan^ 1, 1899, was 38.628 acres.
The estimated net earnings of the H. C. Frick Coke Co. and allied
companies for 1899 were $4,613,200.
H. C. Prick Coke Co., proper, earned 13,498,200
McClure Coke Co 534, 600
Our one-half Hosletter-Connellsville Coke Co 152, 200
Our three-fourths J. A. Strickler Coke Co 10,600
Union Supply Co. (Ltd.) 342, 900
Youghiogheny Northern Bailway Co 28, 700
Youghiogheny Water Co 9, 000
Mount PleaBant Water Co 20, 700
Trotter Water Co 16,300
Total 4,613,200
31572— No. 53, pt 2—12 26
4140 TJNITED STATES STEEL COEPOBATION.
The treasurer's report was ma^e and spread upon the minutes. It
shows, among other things, that the H. C. Frick Coke Co. paid 24
per cent dividends, or $2,400,000, between January 1, 1899, and
December 31, 1899.
That the Union Supply Co. (Ltd.) paid 300 per cent dividends, or
$225,000, between January 1, 1899, and December 31, 1899.
Mr. Frick. I move that we adjourn.
Mr. MoRELAND. I have somethiQg to submit to the board. Mr.
Lynch, I understand you want some instructions about billrDg coke
to the Carnegie Steel Co. Is that right ?
The President. Yes.
Mr. MoRELAND. Will the secretary please read this resolution:
Resolved, That the preeident is hereby directed to render bills for coke to the Car-
negie Steel Co. (Ltd.) at the price to be charged by the late chairman, beginning
January 1, 1899, in accordance with the terms of the agreement made by him, and
which the board of directors approved January 10, 1900, namely, $1.35 per net ton
at ovens.
Mr. MoRELAND. I move that the resolution just read be adopted.
Mr. Gatley. I second the motion.
The President. Gentlemen, it has been moved and seconded, that
the resolution submitted by Mr. Moreland be adopted. Are there any
remarks ?
Mr. Moreland. I want to ask you if you did not have some
authority to biU the coke to the steel company for the first three
months of 1899 ? If so, please state what it was.
The President. The coke for the first three months of 1899 was
billed by direction of Mr. Frick. I did not hear of it until some time
afterward, but as soon as I heard of it, I protested against it on the
grounds that the price was too low and unfair to the stockholders who
were not interested in the steel company.
The President. Are there any further remarks ?
Mr. Gayley. Question.
The President. The secretary will call the roU, and record the
vote of each member.
Mr. Lynch. No.
Mr. Frick. No.
Mr. Gayley. Aye.
Mr. Clemson. Aye.
Mr. Moreland. Aye.
Mr. Morrison. Aye.
Ayes, 4; noes, 2; total, 6.
The President. The motion is carried.
Mr. Frick. I protest against that resolution because no such con-
tract exists, or was ever made, and because the price named in the
resolution is less than one-half the value of the coke, and the members
of this board voting for the resolution are using their ofl&cial positions
for the advantage of themselves and of the Carnegie Steel Co. (Ltd.),
of which they are members, to the great loss of this company and of
its stockholders, especially those who are not members of the Carnegie
Steel Co. (Ltd.).
Mr. Lynch. I wish the secretary to record me as joining in that
protest.
UNITED STATES STEEL. OOBPOBATIOlir. 4141
Mr. MoRELAND. I want to submit another resolution. Will the
secretary read this:
Whereas this company acting by H. C. Frick, then chairman of the board of directors
in December, 1898, entered into an agreement with the Carnegie Steel Co. (Ltd.),
whereby this company agreed to sell and said steel company agreed to purchase all
the coke required for the furnaces of said steel company for the period of five years,
beginning January 1, 1899', at the price of $1.35 per ton of 2,000 pounds delivered
f. o. b. cars at ovens, payable on or before the 20th day of each month for the pre-
ceding month's shipment, and pursuant to said agreement the shipment of coke
began January 1, 1899; and
Whereas said agreement, though acted upon by the parties, was never formally set forth
in writing.
Resolved, That the said agreement be, and the same is hereby, ratified and confirmed
as fully and completely as if the same had been originally entered into under
authority of a resolution of this board, and the officers of this company are hereby
authorized and directed to reduce said agreement to writing, and to execute and
deliver ihe same in the name and on the behalf of this company, taking efiect as of
January 1, 1899.
Mr. MoRELAND. I move that the resolution just read be adopted,
Mr. Clemson. I second the motion.
The President. It has been moved and seconded that the reso-
lution just read be adopted. Are there any remarks ?
Mr. Frick. I protest against the passage of that resolution. Pro-
duce your agreement. Who made it? What was the quantity of
coke ?
Mr. Lynch. I also protest against the adoption of that resolution.
The President. The secretary will call the roll and record the vote
of each member.
Mr. Lynch. No.
Mr. Frick. No.
Mr. Gayley. Aye.
Mr. Clemson. Aye.
Mr. MoRELAND. Aye.
Mr. Morrison. Aye.
Ayes, 4; noes, 2; total, 6.
The President. The resolution is adopted.
Mr. Moreland. I have here a form of contract. I want to make a
motion to authorize the president to execute it for the H. C. Frick
Coke Co. It is signed by the Carnegie Steel Co. (Ltd.).
Mr. Gayley. I second the motion.
Mr. Frick. I protest against this, as it is out of order. What is the
contract ?
Mr. Moreland. The secretary will read it.
This agreement witnesseth that the H. C. Frick Coke Co has sold to the Came^e
Steel Co. (Ltd.), and its successors or assigns in business, all the coke that the said
steel company shall require for its furnaces for a period of five years, beginning
January 1, 1899, at the price of $1.35 per ton of 2,000 pounds, delivered f. o. b. cars at
ovens, payable on or before the 20th day of each month for the preceding month's
shipments; and that the said steel company has purchased said coke and agreed to pay
therefor at the price and on the terms aforesaid.
This agreement taking effect as of date January 1, 1899, is executed and delivered
in the pursuance of resolutions of the board of directors and board of managers of said
respective companies.
Executed and delivered this 24th day of January, A. D. 1900.
H. C. Frick Coke Co.,
President.
The Carnegie Steel Co. (Ltd.),
C. M. Schwab, Manager.
A. M. Moreland, Manager.
4142 UNITED STATES STEEL CORPOEA.TION.
Mr. MoRELAND. I move that the president be authorized a,nd
empowered and directed to execute this contract, a copy of which
appears on the minutes, to be done at this meeting.
Mr. Gatley. I second the motion.
The President. You have heard the motion, are there any
remarks 1
JMr. Frick. I protest against men coming in here representing the
buyer of coke and forcing the president to execute a contract for
coke at practically cost, with no provision against advance in wages
or any of the usual safeguards in a coke contract, as a high-handed
piece of business.
Mr. Lynch. I wish my protest recorded.
The President. The secretary wiU call the roll and record the vote
©f each member;
Mr. Lynch. No.
Mr. Frick. No.
Mr. Gayley. Aye.
Mr. Clemson. Aye.
Mr. MoRELAND. Aye.
Mr. Morrison. Aye.
Ayes, 4; noes, 2; total, 6 votes.
The President. The motion is carried.
Mr. Mokeland. I would like this agreement executed, Mr. Lynch.
The President. I want some time to look into it.
Mr. MoRELAND. I would like to have it executed now. The board
has authorized you to sign it.
The President. It is now 3 o'clock; can't you give me untU 4
o'clock to decide ?
Mr. MoRELAND. Can't you decide now as well as at 4 o'clock!
We want it executed now.
The President. I will let you know in a couple of minutes.
Mr. Moreland. AH right.
The President. The president will execute the contract as directed
by the board, but under protest as a stockholder.
February 6, 1900.
Meeting of directors.
Present: Thomas Lyncli, president (in the chair), H. C. Frick,
Thomas Morrison, James Gayley, D. M. Clemson, A. W. Moreland.
The President. My object in calling this meeting is to submit to
the board for its consideration two communications we have here
from the stockholders. The secretary will please read them.
To the president and board of directors of the H. C. Fridc Coke Co.
Gentlemen: I have been informed that your board of directors on January 24, 1900,
passed a resolution intended to ratify the alleged contract with the Carnegie Steel
Go. (Ltd.), whereby your company is to supply to the latter all the coke it may require
for use in its furnaces for five years, commencing January 1, 1899, for $1.35 per ton,
delivered on cars at your works, and that yoin: company has signed a written memo-
randum of such contract.
As a stockholder in your conipany I protest against any such contract, and I demand
that you do nothing in recognition thereof, and especially that you do not ship or bill
any coke to the Carnegie Steel Co. (Ltd.) thereunder; and that you do not settle with
said company for coke shipped to it since January 1, 1899, at the price named in said
contract or at any price other than the market price at the time of delivery. I deny
that such contract was ever made until you contracted to do so on January 24^ 1900.
This contract is for many reasons unfair and fraudulent as against the minority
UNITED STATES STEEL COEPOEATION. 4143
gtockholdera of the H. C. Frick Coke Co. It is made by those who represent the
majority of stockholders, really in the interest of such majority and against the interest
of the H. C. Prick Coke Co. and the minority stockholders therein. The market price
of coke on January 24, 1900, was $3.50 per ton, and yet this contract, covering almost
one-third of all coke manufactured by the company, fixes a price of $1.35 per ton. In
many other respects it unfairly and dishonestly favors the majority stockholders df
the coke company to the loss of the minority stockholders.
The Came^e Steel Co. (Ltd.), and Andrew Carnegie (who owns more than half of
the interests in the steel company) own together more than one-half of the stock of the
H. C. Frick Co. A majority of the present board of directors of the coke company
are managers and partners in the Carnegie Steel Co. It was this majority who forced
this contract in favor of the Carnegie Steel Co. (Ltd.) on January 24, 1900.
I demand that you rescind said action of your board in favor of said contract, that
you take such further action as may be necessary to rescind and annul said contract.
If you refuse to act, then I ask that you call a meeting of the stockholders of the cok«
company to take action and pass upon the questions herein raised and upon the
requests I now make.
Please advise me promptly what your company proposes to do in the matter, as it
i s mj intention to take proper legal steps to prevent your so doing if you intend
carrying out such pretended contract.
Yours, truly, John Walker,
John Walker,
Guardian for Andrew C. Wilson, a minor.
Pittsburgh, February 1, 1900.
(A letter in the same words as the above letter was also received
from S. L. Schoonmaker, New York, February 1, 1900.)
The President. What action does the board wish to take on these
communications ?
Mr. Frick. I move they be spread upon the minutes.
Mr. Gatley. I think the communications are now part of the
proceedings of the meeting, and of course go in the minutes without
any motion.
Mr. MoRELAND. I think so, too.
Mr. Frick. All right, then,,! withdraw my motion.
Mr. MoRELAND. 1 would suggest that the president notify Mr,
Walker and Mr. Schoonmaker that the contracts wiU be carried out.
Mr. Feiok. Of course you would suggest something of that kind,
I object to such notification. I think the president should decline
to catry them out. You have only heard one side of this case. You
don't know it all. You wiU find out later that there are two sides to it,
Mr. MoRELAND. I presume these communications are simply a
freliminary statement to an action at law, and it might as well comei.
believed when I voted in favor of the contract I did the right thing
or I should not have done it. I think there is only one thing to do 3
an answer is to be made and that is to make a reply such as I sug-
gested.
Mr. Frick. There is no use in my making a motion, as I could not
get it seconded here. I favor the prayer of the stockholders and think
they are entirely right. I think it could be demonstrated at the
proper time that they are right, but I have not the power to do any-
' thing here except to talk, and there is no use in that. Therefore, if
you will excuse me, I will leave the meeting. [Retires.]
It was decided to carry out the contract and to notify the stock-
holders to that effect.
4144 united states steel coepoeation.
Febeuary 28, 1900.
Meeting of directors.
Notice. — On and after March 1, 1900, until further notice, the following wages and
prices will be paid for labor by this company:
Mining and loading room and rib coal, per 100 bushels $1. 25
Mining and loading heading coal, per 100 bushels 1. 40
Mining and loading wet heading coal, per 100 bushels 1. 45
Drawing coke, per 100 bushels charged 72
(All the above by the same measurement as at present.)
Drivers and rope riders f shafts and slopes), per full run 2. 35
Drivers and rope riders (drifts), per full run 2.25
Cagera, per full run 2. 35
Tracklayers, blasters, and timber men (shafts and slopes), per day 2. 35
Tracklayers, blasters, and timber men (drifts), per day 2. 25
All day labor not mentioned above, regularly employed in the operation
of the plants, now receiving $1.60 and over per day, to be advanced 15 cents .
per day, and all receiving less than $1.60 t« be advanced 10 cents per day.
Leveling, per oven 12
Working box and stock cars, and forking open top cars from yard all to be
advanced 15 cents per car over present price.
March 28, 1900.
Meeting of directors.
Contracts for furnace account with Girard Iron Co. for 5,000 tons
per month, or a total of 30,000 tons from July 1 to December 31, 1900,
at $3.50 per net ton at ovens.
April 30, 1900.
Meeting of directors.
Resignation of Mr. Frick.
The treasurer's report shows that the Frick Co. paid 18 per cent
dividends, or $1,800,000, from January 1 to June 30, 1900, and that
the Union Supply Co. paid 200 per cent dividends, or $150,000, from
January 1 to June 30, 1900.
August 28, 1900.
Meeting of directors.
Carnegie Steel Co. contract. The president reported that he had
made a contract with Mr. Schwab for coke to Be furnished to the
Carnegie Steel Co., covering all of its requirements for the months of
July, August, and September, 1900, at the rate of $2 per net ton at
the mines.
January 9, 1901.
Meeting of directors.
The President. Gentlemen, in advance of our annual report, I
thought you would be interested in the following information: We
produced in our own ovens duriag the year 1900, 5,635,093 tons of
coke, and shipped during the year 1900, 6,605,540 tons of coke.
Estimated earnings of all our companies for the year 1900,
$6,445,000.
Estimated coal mined during the year 1900, 825 acres.
Estimated immined coal at December 31, 1900, 38,010 acres.
January 30, 1901.
Meeting of directors.
The treasurer's report for the year 1900 shows that the Frick Co.
paid dividends equaling 43 per cent, or $4,300,000; that the Union
Supply Co. (Ltd.) paid dividends of 366§ per cent, or $275,000.
united states steel ooepoeation. 4145
January 16, 1902.
Meeting of directors.
The President. Gentlemen, within the next two or three weeks we
will have a complete detailed report of the operations of the company
for the year 1901; but in advance of the annual report, I have the
following information relative to its operations and earnings :
Total coke skipped tons . . 8, 461, 141
Total coke manufactured in its own ovens do 6,495,583
Total coal sold do. . . . 445, 534
Estimated earnings (all companies) $4,434,353. 27
Total indebtedness at Jan. 1, 1900 (all companies) $4,954,501.50
Same was increased by settlement of McClure Coke Co. purchase $143, 696. 81
Paid off during the year (all companies) $800,000. 35
Total amount of debt at Jan. 1, 1902 (all companies) $4, 297, 397. 96
Net decrease for year 1901 $657, 103. 54
Unmined coal Jan. 1, 1901 acres. . 38,007
Coal purchased and acquired by exchanges during year 1901. . .do 73
Coal conveyed in exchanges during the year 1901 do 23
Net acreage unmined coal at Jan. 1, 1902 do 37, 124
The treasurer's report shows that for the year 1901 the Frick Co,
paid 36 per cent dividends, or $3,300,000; that the Union Supply Co.
paid 100 per cent dividends, or $75,000; that the Youghiogheny
Northern Railway Co. paid 26 per cent dividends, or $104,000; that
the Mount Pleasant Water Co. paid 21 per cent, or $31,500.
December 24, 1902.
Meeting of directors.
The treasurer's report shows for the jyear 1902 that the Frick Co.
paid 43 per cent dividends; that the Union Supply 'Co. paid
$413,066.66 in dividends (rate not stated) ; Youghiogheny Northern
Railway Co. paid 25 per cent dividends, or $102,000.
January 12, 1904.
Meeting of directors.
The report of the treasurer shows that for the year 1903 the Frick
Co. paid 58 per cent dividends, amounting to $10,250,000. (Union
Supply Co. dividend not stated.)
December 28, 1904.
Meeting of directors.
The treasurer's report shows that the Frick Co. paid 13^ per cent
dividends in the year 1904, amounting to $2,700,000.
April 26, 1905,
Meeting of directors.
The president reported the purchase of the entire capital stock of
the Hecla Coke Co. and the capital of the Hecla Supply Co. (Ltd.)
for the sum of $2,000,000.
4146 UNITED STATES STEEL COBPOEATION.
mjW^ December 27, 1905.
Meeting of directors.
Ttie treasurer's report shows for the year 1905 the following:
H. C. Frick Coke Co.: Acres.
Unmined coalJan. 1, 1905 54,121
Acquired by piirchase during yeai 1,041
55, 162
Coal mined during year 1905 1, 325
Acres.
Net acreage unmined coal Dec. 31, 1905 53, 837
Hostetter-Connellsville Coke Co.:
Unmined coal Jan. 1, 1905 2,833
Coal mined during year 66
Net acreage unmined coal Dec. 31, 1905 2, 767
Our one-half interest 1, 383
The Hecla Coke Co. :
Unmined coal Apr. 1, 1905 1,211
Coal mined since Apr. 1, 1905 59
Net acreage unmined coal Dec. 31, 1905 1, 152
Total "56, 372
Net earnings, H. C. Frick Coke Co $4,765,000
Hecla Coke Co. and one-half Hostetter Co 264, 000
5,029,000
Twenty per cent dividends paid by the Frick Co., amounting to
$4,000,000.
Deoembee 17, 1906.
Meeting of directors.
Frick Co. paid 43 per cent dividends.
February 18, 1907.
Meeting of directors.
The president submitted a new wage scale to go into effect March
1, 1907, as follows:
Mining and loading room and rib coal, per 100 bushels $1. 35
Mining and loading heading coal, per 100 bushels 1. 50
Mining and loading wet heading coal, per 100 bushels 1. 60
Drawing coke, charged, per 100 bushels 77
(AU the above by the same measurement as at present.)
Drivers and rope riders (shafts and slopes), per full run 2.55
Drivers and rope riders (drifts), per full run 2.45
Cagers per full run 2. 55
Track layers, blasters, and timber men fshafts and slopes), per day 2. 55
Track layers, blasters, and timber men (drifts), per day 2. 45
Assistant track layers and inside laborers, per day 1.95
Dumpers and tipple men, per full run 1.95
Leveling, per oven 12J
Charges, per oven 04j
Chargers, per day 2.00
Forkmg cars 40,000 pounds capacity and less 1.65
Forking cars 50,000 to 60,000 pounds capacity 1. 75
Forking cars over 60,000 pounds capacity 1. 90
The price for all other labor regularly employed in the operation of the plants will
be proportionate with the above.
united states steel coeporation. 4147
Deoembee 21, 1907.
Meeting of directors.
Frick Co. paid 17 per cent dividends, amounting to $3,400,000,
according to treasurer's report for 1907.
The president's statement shows:
Coke manufactured year ending Dec. 31, 1907 tons. . 10, 715, 000
Coal shipped during same period do 760,000
Coal mined acres.. 1,550
Net earnings for year ending Dec. 31, 1907 (estimated) $6, 050, 000
June 15, 1908.
Meeting of directors.
This Compaq leased all the property situate in German Township
of the Sharon Coke Co. for a term of one year from January 1, 1908,
and thereafter until notice of termination. (Copy of lease will be
furnished if required.)
July 27, 1908.
Meeting of directors.
The president stated that he had entered into an agreement dated
July 18, 1908, with M. M. Cochran, president of the Juniata Coke Co.,
for the purchase of all of the estate, real and personal, of the Juniata
Coke Co., situate in Dunbar and Frankhn Townships, Fayette
County, Pa., known as the Juniata Coke Works, comprismg about 40
acres of unmined coal and 120 acres of surface land, 250 coke ovens,
tenement houses, tipple, fan, engines, boilers, tracks, hve stock, and
all other equipment, tools, and supplies of every description. The
consideration was $148,000.
December 17, 1908.
Meeting of directors.
The president's statement shows:
Coke manufactured year ending Dec. 31, 1908 tons.. 6,223,900
Coal shipped during same period do 550, 200
Coal mined acres. . 925
Net earnings for year ending Dec. 31, 1908 (estimated) $3, 562, 900
Treasurer's report shows that the company paid 16 per cent
dividends amounting to $3,200,000.
March 22, 1909.
Meeting of directors.
Operating contract for the operation by this company of the
property of the RepubHc Connellsville Coke Co. dated March 1, 1909.
(A copy of this contract, which is similar to the usual form of operating
contract used by the corporation companies, will be furnished S
desired.)
December 20, 1909.
Meeting of directors.
The president stated that arrangements had been concluded with
the dau-ton Steel Co. for the purchase of the coal and surface belong-
ing to that company situated in Luzerne Township, Fayette County,
Pa., totaling 2,644.144 acres of coal and 525.049 acres of surface.
"The surface of 5.569 acres being occupied as a right of way by the
Monongahela Railroad Co., and the surface of 223.871 acres was
bought and paid for by this company for account of the Clairton Steel
4148 UNITED STATES STEEL CORPORATION.
Co., upon which to build the Sarah plant, leaving therefore a net area
of 295.609 acres of surface to be paid for. The consideration agreed
upon is $850 per acre for the coal and $125 per acre for the surface, a
total consideration of $2,284,448.03, subject to an unpaid mortgage
of $500,000.
The treasurer's report for the year ending December 31, 1909, shows
that the total dividends paid during the year 1909 were 27 per cent,
amounting to $5,400,000.
The president's statement showed:
Coke manufactured year ending Dec. 31, 1909 tons.. 10,180,928
Coal shipped during same period do 1,029,881
Net earnings for year ending Dec. 31, 1909 (estimated) $5,812,492.77
January 17, 1910.
Meeting of directors.
Wage scale for January 16, 1910:
Mining and loading room and rib coal per 100 bushels $1. 35
Mining and loading heading coal per 100 bushels 1. 50
Mining and loading wet heading coal per 100 bushels 1. 62
Drawing coke per 100 bushels, charged 78
(All the above by same measurement as at present.)
Drivers and rope riders (shafts and slopes) per full run 2. 60
' Drivers and rope riders (drifts) per full run 2. 55
Cagers per full run 2. 60
Tracklayers, Tslasters, and timber men (shafts and slopes) per day 2. 60
Tracklayers, blasters, and timber men (drifts) per day 2. 55
Assistant tracklayers and inside laborers per day 2. 00
Dumpers and tipple men per full run 2. 00
Leveling per oven 12J
Chargers per oven 04i
Chargers per day 2. 00
Forking cars 40,000 pounds capacity and leas 1. 65
Forking cars 50,000 pounds-60,000 pounds capacity 1. 75
Forking cars over 60,000 pounds capacity 1. 90
The prices for all other labor regularly employed in the operation of the plants will
be proportionate with the above.
May 16, 1910.
Meeting of directors.
The voluntary accident relief plan is set forth, and a copy of the
same wiU be furnished if desired.
December 19, 1910.
Meeting of directors.
Treasurer's report, 1910, shows dividends 22^ per cent, amounting
to $4,500,000.
President's statement shows:
Coke manufactured year ending Dec. 31, 1910 tons. . 9, 735, 879
Coal shipped during same period do 1,237,602
Coal mined acres . . 1, 500
Net earnings for year ending Dec. 31, 1910 $4, 419, 508. 57
June 26, 1911.
Meeting of directors.
The president stated that he had concluded arrangements with
the Pittsburgh Coal Co. for the purchase from them of all the coal
of the Pittsburgh or Revere vein with full mining rights, containing
an area of approximately 7,077 acres, in what is known as the Colonial
coking field, situate in Fayette County, Pa., with all improvements
UNITED STATES STEEL CORPORATION. 4149
thereon, together with such surface as is now used by the coal com-
pany, and also such surface now owned or as may be required and
necessary for the opening and operation of said coal field, including
all the capital stock, property nghts, and franchises of the Franklin
Township Water Co., at the rate of $1,450 for each acre of minable
coal. Also the property known as "Little Shaw miae," including
all the coal and surface, together with the improvements and mine
equipment used in connection therewith, at the rate of $850 for
each acre of minable coal.
He further stated that satisfactory arrangements had been made
for the purchase from the Monongahela River Consolidated Coal &
Coke Co. of all the cok6 of the Pittsburgh or Revere vein with full
mining rights, containing an area not to exceed 8,988 acres, and
consisting of five tracts situate in the counties of Washington, Fay-
ette, and Greene, Pa., being principally virgin ore unmined tracts
of coal, together with the improvements thereon, including "Little
Shaw mine;" also such surface owned as is now used by the Revere
Co., and such surface now owned by it as may be reasonably neces-
sary for the benefit and operation of the said coal field, at the rate
of $850 for each acre of mmable coal.
The sale was to be made as of June 30, 1911, and payment was
to be made in serial bonds of the H. C. Frick Co. of $1,000 each,
divided into 30 equal series, to be issued by the Frick Co., and guar-
anteed as to principal and interest by the United States Steel Cor-
poration. The principal thereof to be payable in 33 years.
(The last meeting extracted was that of July 17, 1911.)
FRICK COAL LAND.
Minutes of board of directors.
Acres
stated to
be coal.
Acres
stated to
te surface
and all
others.
16
Meeting o/direOoTS June IS, 188S.
Known as Tiptop mines, at $67.70 per acre.
Meeting of board of director) Aug. 10, 18Sg.
Proposed lease and contract dated Aug. 10, 1882, for transportation of coke with
Pittsburgh, McKeesport & Youghlogbeny R. E. approved.
Meetlngof directors Apr. BB, 18S4. ,
Acceptance of deeds of Standard Coke "Works and of th© Trotter Coke Works
properties.
Coal property of George W. Boyd bought.
Meeting of directors Sept. U, 1881
Henry Phipps, jr., E. Ferguson, Walter Ferguson, and H. C. Friok to buy 390
shares of stock in the Pennsylvania Crushed Coke Co.
Meeting of directors Feb. tl, 188S.
Purchase of interest in United Coal & Coke Co. jointly with McCIure & Co. and
J. M. Schoonmaker, and purchase of Davidson Coal from Burroughs by H. G.
Frlck ratified.
Meeting of directors June ti, 1881.
Purchase of tract of A. S. M. Morgan and J. B. Morgan, Jr., in Dunbar Township ,
167 acres, 27 purchase.
Wm. Collins tract; 122 acres, 87 purchase.
137 purchase, Leighty tract, $113,000.
40 purchase, Corbin tract.
Meeting of directors Nov. tl, 1886.
Fountain mines, with 50 coke ovens, $32,000.
Purchase of 195 shares Pittsburgh & ConnellsviUe Gas, Cif&l & Coke Co., $27,600.
Meeting of directors Jan. 17, 1888.
Coal, Isaac Shoupe.
157
122
4
t
70
60
106
Shields, tracts of coal land.
171
\
Meeting of directors Oct. 17, 1880.
Rumbeaugh.
Meeting of directors Apr. «7, 1887.
Coal, Martin Wertz, $250 per acre.
Meeting of directors July U, 1887.
Purchase of J. Newcomer tract of coal. Thomas Lynch, general superintendent,
was instructed to buy the same at not exceeding $500 per acre.
Meeting of directors Nov. tS, 1887.
87
177.961
/
35
17
Coal, Abram Hodgson.
Purchase of J. Sherrick coal recommended at not more tbnn $200 per acre.
Meeting of directors Dee. 18, 1887.
In upper Tyrone Township, Fayette County, Pa.; purchase approved.
63
4154
UNITED STATES STEEL OOKPOEATION.
Minutes of board of directors — Continued.
4151
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
87
Ueaing of directors Nov. IS, 18SS.
g
Meeting of directors Dec. 16, 18S8.
Coal near Trotter Coke Works.
100
Meeting of directors Feb. S, 1889.
Coal, at S3 an acre purchased from John Sandels, guardian and trustee, and
J. A. StrioHer.
At $300 per acre, purchased from Elizabeth Barnhart.
aoo
59
Meeting of directors Mar. tS, 1889.
86
for $60,000.
Meeting of directors Apr. 8, 1889.
And 96.4, purchased from Jesse Smith, $21,400.62.
19
Cyrus Brinker, instead of 59 acres: 120 purchased from Samae Adrews and
326.514
wife as of Feb. 2, 1889.
Meeting of directors Oct. 17, 1889.
Purchase of one-fourth interest in Oliver property from A. S. Morgan, James P.
100
Morgan, and Mrs. Lottie L. Crossland, consisting of 326.614 acres, in Uniom
Township, Westinoreland County, Pa., for $48,406.62,
140
One-half interest in Deyarman property.
51, purchase Minerva Moore tract.
41
169
James Smiley tract.
40
Albert Johnston tract.
90
J. Q. Letherman tract.
Undivided one-third interest in W. Miller tract of 120 acres.
Undivided one-fourth interest in James Robinson tract, containing 200 acres.
Undivided one-fourth interest in Samuel Bobinson tract, containing 200 acres.
Undivided interest in coal under Morrison's Collier tract, being one-fourth in-
135
terest in 123 acres.
The foregoing were purchased from J. V. Thompson.
The following tracts were purchased from J. V. Thompsom and James A,
Hasted:
Known as Jacob Hayden farm.
18
9-foot vein under Mary Kyle tract.
20
Coal under Catharine Davis tract.
15
Coal under Caroline Grady tract.
65
Coal under Merchant's collier tract.
120
Undivided five-eighths interest in coal on Joshua Davis farm.
25
Coal on Justis Dunn tract.
94
Also purchased the following tracts of coal owned by J. V. Thompson indi-
vidually, situated in Georges "Township, Fayette County, Pa.:
Coal on Samuel Fouch tract.
3.6
Coal on Lewis Cooley tract.
60
Coal on Letherman and Trade tract.
33
80
132.5
162
30
Also purchased the following tracts of land owned by James M. Husted,
situated in Georges Township/Fayette County, Pa.:
124, purchase Lydia and Jacob High tract.
106, purchase John J. Collier farm.
32, purchase J. M. Husted farm.
81, purchase Absolom Fouch farm.
Downard tract.
Also, various tracts of coal land owned by J. K. Ewing et al.
1,500
600
50
Also, purchased by Frick from J. W. Moore:
Coal and surface, respectively, and 609 coke ovens.
Surface, J. B. Huist farm.
100
Coal and surface, Wynn Works property and 70 coke ovens.
703.6
1,188
622
60
276
1,100
Coal and surface, for $1,138,423.12.
Meeting of directors Dec. ««, 1889.
Coal and surface, respectively, purchased through the purchase of all the capi-
tal stock (20,000 shares) of the Coke Co. of Connellsville, for $420,000.
Purchase of one-half of two-thirds of 1,100 actes of land, under 622 acres of which
there is a 9-foot vein of Coimellsville coal, for $196,000.
4152
UNITED STATES STEEL COKPOBATION.
Minutes of board of directors — Continued.
KAcres
stated to
be coal.
Acres
stated to
be surface
and all
others.
112. 679
77.740
622
140
30
40
27.896
88.5
I .
1
70
27
41
5
390
92
163.981
47.562
26.738
66.056
14.60
19. 125
145.88
Meeting of directors Dec. SI, 1889.
Purchase of farm of Wm. F. Brinker for 150,600.
Meeting of directors Mag 19, 1890.
Coal, Geo. W. Cox. of Dunbar Township, Fayette County, $37,713.96.
Isaac Sberick, $22,644.60.
Purchased from J. V. Thompson, being J. V. Thompson's interest in one-fourth
of two-thirds of what is known as the Beesun property, consisting of 1,100
acres of land, under 622 acres of which there is a 9-loot vein of Connells^iUe
coal, "we owning the other three-fourtlis of two-thirds; total consideration,
$56,000."
Purchased one-half interest in Alexander Deyerman tract; this company owning
the other half.
Coal and surface, respectiTely, from George Cunningham, $7,500.
Meeting of directors June 10, 1890.
Near upper Tyrone Township, Fayette County, Pa., from J. W. Strieker.
(Purchased all shares of the J. A. Stricklar Coal Co. (Ltd.) for $17,000, the said
company owned 88i acres in Mount Pleasant Township and 7 acres m Hemp-
t field Township, county of Westmoreland.
Coal and surface, from K. L. Martin, together with mining rights, water privi-
leges, 2,700 feet of raihoad siding, 4 tons 16 pounds pit iron and 25 purchase
stone, Ibr $35,000.
Meeting of directors Oct. H, 1890.
Surface and coal purchased from Wm. A. Playford and Albert B. Boyd of Union-
town, Pa., known as "Barricklow" farm, $60,000.
94, purchase coal Connaroe tract.
Purchased from Famiie Robinson, widow of Cyrus Robinson, four-flfths of the
Connellsville vein of coal under a certain contract of land in Dunbar Town-
ship, Fayette County, Pa.
From J. S. Overholt and wife, W. Morgan Smith and wife, of Mount Pleasant,
tract of land.
Surface, from Wm. Johnson.
Purchase one-third of 722.894 acres in Georges Township, Fayette County, from
estate of Benjamin F. Ruff, for $72,289.60.
Purchase of two-thirds of Connellsville vein of coal under a certain tract of land
in South Union Township, FayetfB County,, Pa., consideration, $10,500.
23, purchase Paul and Gaddis properties.
107, purchase Gaddis tract.
Consideration for Paul tract, $00,000, and for Gaddis tract, $16,000.
Purchase of one-fourth of the two-thirds of the Beesun property from A. W.
Mellon.
Purchase of remaining one-third of Tiptop Coke Works from Davidson estate.
Also purchase from said estate the following undivided one-half interest in
the following tracts of coal:
Samuel Crossland.
Joshua Vance.
John Murray
S. S. Vames.
J. and C. Robertson.
H. C. Robertson.
Consideration, $125,000.
Joseph Bute, $72,940.
$3,000 paid for mining rights in form of Peter R. Demuth.
Meeting of directors May Si, 1891.
Coal Wilson Shields, $1,066.62.
Purchased one-tenth interest in the John and Jacob Lucky tract of coal at Leisen-
ring, containing 41 acres, $1,230. '
Coal m Chas. L. Smith tract in South Union Township, $1 000.
Coal Hugh Rankin tract in North Union Township, Leisennng Works, for $802.25.
Out of 63 acres interest of Elizabeth Brown in Robert Brownfleld tract for
$1,614.75.
Purchased H. L. Robinson, point in "Hayti" for $130; A. S. Craig lot; W. N.
and C. H. Griffith narrow strip; George W. Rutter lot; R. F. and D. J. Hop-
wood lot; Nut& Bolt Works lot; R. W. Dawson 16 lots, 3.105 acres, for $7,305.25.
All of the above tracts purchased from J. V. Thompson.
UNITED STATES STEEL COEPOEATION.
Minutes of board of directors — Continued.
4153
•
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
1
Meeting of directors Feb. 8, 189S.
Purchased from Asenath McGuinn 9-foot vein of coal in South Union Town-
97
ship, Fayette County, $350.
45, purchase coal, Jacob H. Woork.
Purchase from R. L. Morton one-halt of one-eleventh of 26 acres of coal andfsur-
face being part of Sutton heirs tract in Georges Township; consideration,[$30.
This makes thirty-six forty-fourths of said tract owned by this company.
Purchased from J. V. Thompson the following:
Coal, James G. Barnes tract.
62
74
3S.367
Coal, in South Union Township.
11
4
Andrew Bryson tract.
145.563
Purchased from J. V. Thompson:
Coal, in various tracts. (See particulars, infra.)
Purchased from United Coal ACoke Co.:
Coal, bounded by lands J. W. Moore; Calumet Coke Co.
Bounded by lands A. M. Staufler.
Purchased from Faimie Kobinson, widow of Cyrus Eobinson, one-fifth 'of 1he
29.819
21.461
fi.663
coal under tract of land in Dunbar Township, Tayette County, containing[6
acres.
Coal, Thomas McCabe.
Purchased 4,600 square feet coal in South Union Township, Fayette County, Pa.,
.8
S32.
Meeting of directors May IS, 1891.
Stephen E. Wadsworth, $72.
115.518
Benjamin Newcomer, $2,000, reserving thereout 4 acres.
2,984
20
Meeting of directors Oct. U, 189t.
Coal and surface, respectively, A. W. Mellon.
Purchase of one-third interest in 266 acres of coal and acres of surface from
John W. Moore, Robert B. Moore, James H. Moore, heirs of Presley H. Moore,
deceased.
Also P. H. Moore's interest in 627 acres coal and 54 acres surface for $530,000.
5
Surface at Red Stone Coke Works, known as E. Hutchinson tract.
2
Coal, Robert Hogan farm at Red Stone Coke Works.
1
Around the shaft at Red Stone Coke Works, for the sum of $4,200.
1.416
Coal, in upper Tyronne Township, Fayette County, from Sarah Murray, $600.
461
Meeting of directors Oct. IS, 1892.
The Oliver Iron & Steel Co. and the H. C. Frick Coke Co. own jointly 1,266
acres and 20 purchase and 112.42 surface, and the following was the partition
thereof: 803 acres and 126 purchase of coal to Oliver Iron & Steel Co., and
Acres and 56 purchase coal and the said surface tract of
Acres to Frick Co.
112.42
270
Meeting of directors Oct. 19, 1892.
Coal, at $1,000 per acre.
Coal; E. W. Ferguson, in East Huntington and Mount Pleasant Townships.
269. 493
19. 447
Coal, adjoining our Standard tracts, from John Weaver, for $5,000.
Coal, Margaret Cox, $1,600.
33.744
Purchase of lease to Dr. Mahlon Diehl, etc., of tract.
25
Meeting of directors Fet,. 28, 1S94.
Miningridits, Craig tract.
Cyrus D. Robinson and Joseph Herbert tracts.
91.231
.360
Land from John L. Mortimer.
2.333
Coal, for $1,166, from Anton Luxnor.
98. 617
Coal, known as the Smith-Fuller tract.
113. 022
Mining rights of Joseph A. Patterson, Reason Smurr (formerly Edward Eaglan),
23.142
2
and Abraham Staufler, heu-s.
Surface, of Solomon Phipps, for $3,471.30.
Air shaft lot, John W. Moore.
74
Purchased at public auction through A. W. Mellon:
Coal, Eliza Wilson, $127 per acre, and the undivided half interest in the Mathiot,
Goodwin, Martin, Hickle, McCormick, and Fields tracts of coal, containing
about 186 acres, and the undivided halt interest in the surface of said tracts,
making a total purchase of—
Coal.
166
70
Surface.
4154
UNITED STATES STEEL COBPORATION.
Minutes of board of directors — Continued.
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
48. 819
.185
1.1
242
32. 958
4
620
.245
72.660
12. 152
119. 562
85.306
1S2.300
.859
'i'.iii
1.808
7.489
45.988
23.361
45
.163
2.421
.566
.102
.276
75
5.840
.349
.450
.459
.098
.130
.325
".hii''
Meeting of directors, Apr. tO, 1894.
Received deed for two-tbirds mining rights in 2S acres in Craig farm.
Coal, Uerctiant Collier tract, $400 per acre, $19,527.50.
Meeting ofdireetora, Dec. 17, 1S94.
Acre of coal from Alexander Belt for S25.
Surface, from A. D. and J. D. Boyd, South Union Township.
And 43 purchase of coal in South Union Township, Fayette County, from heirs
of Isaac Brownfleld, $187,000.
Purchase from Murphy heirs, undivided seventeen twenty-seconds of tract, in
North Union Township.
From Hugh C. Farmer for $1,760.
And 729 purchase coal from Elizabeth Frick, widow.
Meeting of directors, July S, 1891.
Purchased, being all the McClure Coke Co.'s coal lands and improvements on the
following basis: $850 per acre for each acre of unmined coal owned by the Mc-
Clure Coke Co., which is to include all Improvements and equipment, and
$200,000 for the 620 coke cars; 275 acres, 131 piorehase of coal land of this com-
pany exchanged for the same amount of the Lobinger tract of Wm. Thaw,
oec&sed.
Meeting of directors, Jan. IS, 1896.
Surface, from W. A. Blaney, Dunbar Township, Fayette County, Pa.
James and Cyrus Bobinson, tract connected with our Trotters mines property,
purchased for $1,850 cash.
Meeting of directors, Jan. 10, 1898.
Coal, from David A. Barth, in borough of Uniontown.
Surface, John F. and Fuller Hogsett, $5,978.
Surface, Fred S. Chalfant, trustee.
Coal and surface, respectively Bachael Hawkins.
Coal, Elizabeth C. Brownfleld.
Fairchance Fire Brick Co.
Purchased lot of Geo. W. Halfln and mining rights for $50.
Mary J. Reynolds.
Meeting of directors, Feb. 17, 1898:
Quitclaim deed for 1,000 acres (reserving 34 acres and 137 acres) received from
Fairchance Furnace Co.
Meeting ofdireetora, Apr. 17, 1898.
John W. Stirling.
Christian Fox.
Morris L. Painter.
17,713 square feet of land from Fordyce & Bryner.
Coal, En C. Faddis.
And mining rights from J. V. Thompson.
Meeting ofdireetora, Sept. es, 1898.
Coal, from James N. Mackey.
Coal, Ada M. PhUllps.
.447
Robt. W. Dawson.
Coal, James K. Blackford.
Solomon Keister.
Lindley Newcomer.
W. Marrietta.
Geo. McClintock.
Benson lot.
Webster lot, Eliza W. Downer.
42, purchase mining rights from Albert Robinson.
Meeting of directors, Jan, tS, 1899
Coal and surface, James Cowie.
Surface, Alfred J. MiUer.
Coal, Mary E. McSloy.
UNITED STATES STEEL OOBPOEATION.
Minutes of board of directors — Continued.
4155
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
120
Meeting of directors, Feb. 1, 1S99.
Kilgore farm, at the rate ol about $525 per acre.
Meeting of directors, May 24, 1899.
Coal, David J. Hopwood.
Goal, Virginia H. Cooper.
Robt. If. Hopwood.
Wm McWilliams
1.791
.775
.413
.189
.138
Coal, lot No. 6, Borough ol Uniontown.
Coal, fourth ward, Borough of Uniontown.
Mrs. Mary Paddock.
Meeting of directors, Sept. 17, 1899.
Coal John H. Byers, $46,666.70.
.138
.199
91. 313
3
55.038
.459
Coal and surface, respectively, and 50 coke ovens, machinery, etc., of the Mer-
chant Coke Co., Georges Township, $14,000.
Surface, Mary E. Sheldon, $1,250.
Coal John W Stafford
.611
158.759
260.597
15. 339
Coal'and surface, respectively, from A. W. Mellon, $99,224.61.
W. H. Hopwood, at the rate of $160 per acre, $2,500.
With minmg rights from Wm. Swearingen.
Surface and mining rights. Christian S. Freed, $807.31.
.326
63. 821
104. 594
52
24, purchase, Elizabeth H. Mickey.
Coal, Mrs. M. D. Keyser, at the rate of $771.09 per acre, $8,000.
Coal, W. H. Myers, at the rate of $700, $19,600.
10. 375
28
.629
71. 224
Purchase 3 undivided interests, aggregating—
Coal known as Banning coal property, from A. C. Overholt, Gertrude Torrence,
and the Torrence heirs.
Meeting of directors, Nov. SI, 1899. •
Coal, Eliza Low.stetter.
9.054
2.726
Coal, John M. Rumbaugh.
98
128
$17 and $20 per acre, respectively, from Stephen S. Lighty.
And 65, purchase coal, with mining rights, Hague heirs tract, $1,025.
24
.220
Meeting of directors, Dec. 17, 1899.
Oliver Schick.
110
Coal, called Newell coal, $1,050.
-.172
Meeting of directors, Jan. S4, 1900.
Surface, M. Saxman, jr., trustee.
20. 647
Coal, L. r. Springer, at the rate of $180 per acre, $3,716.46.
.456
Meeting of directors. May IS, 1900.
Coal, $228, at the rate of $500 per acre.
.074
Meeting of directors, July », 1900.
Coal, Chas. G. McCormick.
4.544
Coal, Fannie Eocks.
.333
Land, from Joseph S. Newcomer tract, $4,600.
.046
Meeting of directors, Sept. 28, 1900.
Coal, Johnson M. Eldredge, $25.
.071
Coal, Wm. Desellems, $36.
1.294
Meeting of directors, Nov. 7, 1900.
Coal, Wm. Steiner, $500.
Meeting of directors, Dec. 26, 1900.
Purchased mining rights from Lighty and from Ulysses S. Grant Leighty et ux.,
by deed dated Nov. 3, 1900, mining rights 1 , 2, 3, and right to sink one bore hole,
in 102.853 acres of coal owned by this company, situate in Dunbar township,
Fayette County, Pa., part of the acreage being connected with our Trotter
mines property and bought with our Adelaide mines property, consideration,
at the rate of $26.76 per acre, ,$2,750.J
31572— No. 53, pt 2—12 ^27
4156
USriTED STATES STEEL COBPORATION.
Minutes of board of directors — Continued.
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
0 445
Meeting of directors, May SI, 1901.
With mining rights, C. B. Kremer, $302.
,200
With mining rights, N. Hopwood, $190.
232
Coal, N. Hopwood, $148.
.333
Coal, W. P. Case.
283
Coal, J. W. Darby, $229.
.0R.5
Coal, W. H. Jaquette, $40.
Coal, Wm. C. Black, $170.
.204
.102
Coal, J. W. Umbel, $64.
.244
Coal, J. D. Sturgeon, 1200.
Purchased from Martin, from Anne L. Martin and husband, by deed dated May
.138
6, 1901, a lot of ground situate in the Borough of Fairohance, Fayette County,
Pa., containing 10,000 square feet, etc., $500.
Coal, Rose H. Austin, $150.
.276
Coal, Harry Whyel.
Coal, T. B. Woodward, $103.
.097
.120
Meeting of directors, Feb. SS, 1900.
Coal, Francis E. McClure, $50.
0.003
Surface, J. S. Loucks. $1,875.
Coal, H. L. Dumbauld, $125.68.
Meeting ofdireetare, Sept. SB, 1901.
Purchased from W. A. Wilson, Sept. 16, 1900, the undivided two-fllths of 162.189
acres or —
Acres of coal, with mining rights, situate in Mount Pleasant Township, Westmore-
land County, Pa., adjoining our Calumet Mines property and being part of
what is known as "John and Jacob Byers tract;" consideration, $60,000.
Meeting of directors, Oct. 26, 1900.
Purchased from James B. Modisette by deed May 20, 1901, 6 pieces of coal,
with mining rights, all situate in the borough of Uniontown, Fayette County,
Pa., and connected with our Leith Mines property, containing—
1 piece.
1 piece.
1 piece.
1 piece.
1 piece.
Being a total of 1.271 acres; consideration, $1,208.
Coal, Robt. W. Hopwood, $400.
Coal, Mary C. Vincent, $50.
Coal, Jasper T. Sembower.
Coal, Geo. M. Smiteley, $425.
Coal, Josephine H. Snyder, $138.
Meeting of directors, Jan. 19, 1901.
.251
60. 875
.331
.118
419
.100
.125
.400
.044
.138
.470
.138
.850
.964
Land, H. C. Dougherty, $224.50.
Meeting of directors, Feb. 16, 1901.
.147
.124
.609
Coal Paoli A Tarr $375
.138
5.741
Meeting of directors. Mar. S6, 1901.
Goal, Jesse Chambers, $3,444.60.
Coal, H. P. Rumbaugh, $1,685.20.
Coal, James T. Newcomer, $1,000.
Meeting of directors, Apr. IS, 1901.
Coal, R. W. Dawson, $113.98.
4 213
1.250
72.313
Land, Albert Johnston, $3,615.66.
Coal, Wm. A. Playford, $3,000.
7
UNITED STATES STEEL COKPOEATION.
Minutes of board of directors — Continued.
4157
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
104. 973
Meeting ofiirectou, May M, 190e.
Coal, Eobt. D. Currie (except one-halt of 0.082 of an acre), $1,674.
15.009
Purchased from J. Perlee Power, by deed dated Apr. 26, 1902, full mining
rights for 3 pieces ol coal owned by this company, 1 piece contaiimig—
Acres, situate in Dunbar Township, Fayette County, Pa., 1 piece containing—
Acres, except one-half of 0.147 of an acre situate in Dunbar Township, Fayette
County, Pa., and 1 piece containing—
Acres situate mFranklmTownshipj Fayette County, Pa., all connected with our
Leisen King Mines property; consideration, S2,624.85.
Coal, S. Sleighter, except one-half of 0.107 of an acre; consideration, $100, etc.
Meeting of directors, Sept. S9, 1902.
Coal, Rachel Smiley, $775.
115.142
44.912
2.234
2.006
229. 338
Coal, mining rights from E. F. Woodward, at the rate of $10.50 per acre, $2,408.
Coal, with mining rights, Wm. B. Downs, $500.
Meeting of directors, Voc. ««, ms.
Coal, with mining rights, S. N. Long, $2,359.
.500
2.359
.023
Meeting of directors, MayB7,190i.
Coal, Bessemer Coke Co., $1.
215. 368
Anne Cameron, mining rights for Lynch and Hess tracts, $10 per acre, $2,153.63.
38.4
mines, $80. 10.
Coal, James W. Wilson, $403.20.
55.259
Mining rights, David M. Parkhill, at $29.86 per acre, $1,650.
3.149
Surface, John A. Markel, $100 per acre, $314.90.
38. 774
Meeting of directors, Nov. 21, 1906.
The 9-foot vein of Connellsville coal in North Union Township, known as Plinock
10.821
and Murphy tracts.
Meeting of directors. Mar. SO, 1907.
Land, Carnegie Land Co., Fairchance Borough, $1.
Purchase from Peter Firmstoue ct ux by deed dated Jan. 9, 1907, of all the 9-foot
vein of coal underlying a certain lot of gromid situate in the Mount Pleasant
Township, Westmoreland County, Pa., known as lot No. Omthe John H. Eum-
baugh's plan of lots in said township, and adjacent to the Borough of Mount
Pleasant, together with all the coal underlying the street and alleys joining said
lot, containing 5,920 square feet; consideration $165.
Purchase from Thomas Zivny, Jan. 25, 1907, of all the 9-foot vein of coal under-
lying a certain lot of ground situate on Diamond Street, in the Borough of
Mount Pleasant, Westmoreland County, Pa., together with all coal underlying
the street and alleys adjoiiing said lot, containing 6,000 square feet.
Purchase from Mathias Meider, Feb. 14, 1907, of all the 9-foot vein of coal imder-
108
lying a certain line of ground situate on Diamond Street, in the Borough of
Mount Pleasant, Westmoreland County, Pa,, together with all the coal mider-
lying the street and alleys adjoining said lot, containing approximately 6,000
square feet-
Acres and 145 purchase James Seaton Collier, Feb. 14, 1907, $10,890.60.
.121
Land, Michael Shoup, $50.
84
Coal, standing in ribs, Nathaniel King, and —
258
Coal! $258,
Meeting of directors. May 20, 1907.
Parchase from Frank and Josie Grabiak, by deed dated Mar. 5, 1907, of all coal
under tract of land 83.15 purchase, situate near Morewood, East Huntmgton
Township, $2,633.42.
Purchase from J . C. and Mary Peterson, Mar. 25, 1907, release of damages for mm-
ing coal under lot Heckla Nos . 1 and 3, $554.
Surface, Merchant Collier, $3,101.
31.01
23. 589
Less reserve of 0.261 acres, Peter Richenberg, $500.
1.054
.213
27.0-52
Surface, Richard Keedy, $1.
Surface, Wm. W. Brownfleld.
Surface, Westmoreland Savings it Trust Co., $4,569.75.
4158
UISriTED STATES STEEL. CORPORATION.
Minutes of hoard of directors — Continued.
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
"9 3992
Meeting of directors, Sept. SO, 1901.
Purchases from executors and trustees of the estate of Wm. J. Rainey, de-
ceased, by deed dated June 8, 1907, all the Connellsville vein of coal underlying
the following tracts :
Lots around Clay Pike.
43 123
New Haven lots.
19 771
George E. Hogg heirs' tract.
Lot No. 412, New Haven Borough.
Streets and alleys, New Haven Borough.
877
6 075
327
Blackstone tract; one-third interest in —
783
Richard's tract; one-third interest in —
7 432
024
New Haven Borough .
1 238
Wm. Forsyth tract.
John T. Tarr, $1,854.
65 39
Isaac S. Stoner, Trotter, $1,834.75.
30.891
.7
Edward D. Brown, German Township, $1.
Jacob Hout and John D. Hitchman, $700.
Purchase from Moses Husted, Aug. 17, 1907, all of the Connellsville vem of coal
345
underlying the school lot, contahiing three-fourths of an acre, situate in Georges
Township, Favette County, Pa., $700.
And Porter, $356.
38.318
10.750
6.5.011
Surface, Asbury R. Strudle, $6,331.80.
Geo. W. Struble, $1,075.
Wm. A. Stone, $77,015.40.
Meeting of stockholders, Jan. 10, 190S.
Carrie B. Herschey's interest in Sutton heirs' tract, $150.
100
H. B. Vought; $125.
Harry Whyel, $9,885.50.
61.632
78.214
79.094
63.320
17.842
Siu-face, James Smiley, $9,776.75.
Sin-face, Henry J. Dougherty, $4,723.25.
Surfnfe. James S. Collier, $12,300.
174.207
&4 886
Meeting of stockholders, Jan. 9, 1906.
Sur ace, Josiah V. Thompson, $174,200.
Josiah V. Thompson, $.58,607.50.
Coal, Josiah V. Thompson, $27,577.
Coal, Josiah V. Thompson, $98,445.
25 07
97 214
Coal, Josiah V. Thompson, $97,214.
Coal, Josiah V. Thompson, $633,923.33.
397.073
5.046
Coal, and acres of surface, $344,387.17.
Crossland Works and property pertaining thereto purchased from Isaac V. Sea-
83 646
mans, $20,000.
James H. Hoover, $60,000.
Surface, Henry J. Dougherty, $1,300.
13.888
Purchased from Ralph Morris, Apr. 13, 1905, the right to drive two headings
through the coal underlying all that parcel situated in Mount Pleasant Town-
ship, Westmoreland County, Pa., to be used In connection with Standard
Works property, $100.
8.044
Purchased from Jacob S. Loucks, June 20, 1905, plat of ground 70.9 feet by 110
feet, containing 7,799 square feet, situate in the Borough of Stookdale, West-
moreland County, Pa., to be used In extension of office building, $7,090.
Coal, M. Wilmena Tuttle, Oct. 23, 1905, $1,000.
Surface, E. Seller, $3,000.
9
11.851
Surface, William Kissinger, $4,000.
6.475
Coal, J. S. Weaver, $3,000.
Coal, John S. Moore, $134,082.
Coal, David W. Clement, $1,000.
Meeting of stockholders,' Jan. 8, 1907.
Surface, John Fritz, $290.
Umis Snyder, $1,500.
Paul Schuman, $1,000.
Coal, Josiah V. Thompson, exchange (12.522 acres).
Coal, H. M. Bash, $1,000.
Sarah F. Eohart, $1,600.
H. F. Beistel, $1,755.75.
148.98
2
6.068
16.935
11.133
2.176
4.389
.056
Coal, Ruth A. Shepler, $578.04.
Coal-mining rights, William P. Parkhill, $1,858.
74.32
UNITED STATES STEEL COEPOEATION.
MiniUea of board of directors — Continued.
4159
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
0.125
1
Meeting of stockholders, Jan. 8, 1907— Continued.
Surface, Union Supply Co., tlOO.
Purohased from Mart A. Keifer, sheriff by deed dated Mar. 7, 1906, of the Vir-
rinia McCoy lot of surface situate at Wynn, Georges Township, Fayette
County, Pa., 1 acre, $100.
Ruth A. Shepier, $189.
Coal, Babbie E. Byers, 19,000.
Coal, ■William W. Parshall, $1.
Coal, Huston S. Williams, $50.
0.023
13.012
\
.785
.50
1
1
.399
Coal, vmder Walnut Hill School, $125.
Josiah v. Thompson. $160.40.
Purchased from Heokla Coke Co., by deed Jime 15, 1906, of leases to Heokla No .
3 property, including certain tracts of land situate in Moimt Pleasant Towns
ship, Westmoreland County, Pa., containing 690.473 acres of coal as per desorip -
Hon, of which there have been mined to date of deed approximately 99 acre,
thus leaving net area of 591.473 acres.
Coal, Heckla Coke Co.
.188
690. 473
498. 214
.125
Coal, William Gongaware, $50.
Coal, Alexander C. Graham, $150.
.50
Coai; Charles F. Rumbeaugt, $352.
Coal, Frank Berdych, $745.
Coal, William D. Mullen, $3,367.
.745
3.367
13.746
Coal, John H. Rumbaugh, $13,746.
Coal, WilUam D. Mullen, jr., $3,193.
Coal, Buna Vista Shivler executors, $2,878.
3.193
2.878
1.395
431
1.800
138. 145
59.318
90.191
Coal (except 15 acres in ribs), Heckla Coke Co., $100, etc.
Acres of coal and surface, Heokla Coke Co., $100, etc.
Mining rights, Nancy R. Patterson, $2,000.
Coal Sarah A. Strubble, $455,079.60.
509.644
2.481
Coal, Amelia F. Smith, $1,000.
Coal, James R. Gray, $603.16.
Surface, William M. Thompson, $1,832.60.
George M.Smitely, $100.
Coal, John W. Bennett, $3,000.
.545
18.326
.0345
3.071
3.125
187.518
10.821
Coal and surface, respectively, James A. Phillips, $36,000.
Annual meeting of stodcholien, Jan. U, 1908.
Carnegie Land Co^ $1.
6,920 square feet, Peter Femiston, $165.10.
6,000 square feet, Thomas Zivny, $167.08.
6,000 square feet, Mathias Nieder.
108
And 145, purchase James Seaton Collier, $10,890.60.
.121
Michael Shoup, $60.
.258
Nathaniel King, $2,586.
60
Coal, release from agreement not to mine, John G. White and Isabella Boyd
196.76
$2,000.
114. 295
65 694
58.6205
Edward D. Brown.
83 1526
Coal, Frank and Josie Grabiak, $2,633.42.
31.01
Surface, Hannah Collier, $3,101.
23.589
Coal (less reserve of 0.261 acre), Peter Richtenberg, $500.
1.054
.213
37.052
Surface, Richard Keedy, $1.
William W. Brownfleld.
Surface, Westmoreland Savings & Trust Co., $4,569.76.
2.06
Coal. John T. Tarr, $1,854.
65.39
Mining rights, Isaac F. Stoner, $1,834.76.
Edward D. Brown, $3,200.
30 891
6.911
Monongahela R. R. Co., S700.
Jacob J. Hout and John D. Hitchman, $700.
7
.75
Moses Hustead, $750.
.346
Marian Porter, $356.
38.318
10.750
Surface, Asbury R. Slruble, $6,331.80.
Surface, George W. Struble, $1,075.
WiUiam A. Stone, $77,016.40.
65. Oil
.181
.170
James A. Cooper, $292.
.165
Walter M. Davis, $175.20.
1.77
Henry Baughman, $l,4ie.
.193
D. Koontze, $164.40.
4160
UNITED STATES STEEL COKPOEATION.
Minutes of board of directors — Continued.
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others;
0.165
.467
2.386
.190
.363
■ 2.50
.195
.071
.110
.074
.110
.076
.029
.655
.137
.424
1
25
627
1
133
73
20*!
1
124
3
721
1
44S
156. 2973
2.834
.136
2
.138
1
1
4
3.518
40
.50
1.371
33.053
6.915
4.012
4
4.473
.148
.145
1
■2.16
.544
.165
.226
1.75
.179
.414
.105
Annual meeting stockholders, Jan. li, 1909.
Jacob R. Barhart, $1,776.
Chas. W. Strickler, $373.
Francis Eocks, $1, etc.
Coal, Henry Leutz, $6,966.
Reservation (0.166 acre), Alonzo Fenton, $2,000.
James R. Gray, $1,472.
Purchase from Mathias Koch, Mar. 28, 1908, of coal in lot in Mount Pleasant
Borough, Westmoreland County, Pa., area not given, $118.96.
Purchase from Walter M. Davis, Mar. 28, 1908, coal under lot Mount Pleasant
Borough, Westmoreland County, Pa., 40 by 120 feet, $88.16.
Piu-chase from Benjamin F. Miller, Apr. 24, 1908, coal under two parcels, $176.
Purchase from Clark E. Uber, Apr. 24, 1908, coal, no area given, $115.28.
Surface, John Rankin, $1,000.
W. A. Stone.
Also mining rights Christopher Jarvis tract, $1.
Coal, tmder Eagle School lot, $200.
Coal, Chas. E. Clark, $627.
Coal, Lewis E. Schupe, $1.
155, piu'chase Susanna H. Maxwell, $6,500.
Elizabeth S. Hutchinson, $5,255.
Purchase from David Cable, Sept. 30, 1908, interest in Sutton fann, containing 26
acres, situate in Georges Township, consideration $50, their interest being
one four-hundred-and-twentieth.
Purchase from Flora Foote, Oct. 14, 1908, one four -himdred-and-twentieth Inter-
est in Sutton farmj $50.
Purchase from Annie Forsyth, Oct. 14, 1908, her interest in Sutton farm, $50,
being one-seventieth.
Mining rights Alvin C. Edwards, $3,907.44.
Surface Mary Collier, $100.
Reservation, 0.334 acre, E. D. Bamhart, $2,500.
Coal, Albert Stefl, $170.66.
Purchase from Milton Cearlp, Nov. 2, 1908, his Interest in Sutton farm, 26
acres, S.50, being one four-hundred-and-twentieth.
Purchase from Stella L. Carle, Nov. 2, 1908, her Interest in Sutton farm, $50, being
one four-hundred-and-twentieth.
Coal, James E. Kintz, $1,350.
Elmina Sullenberger, $148.41.
54, purchase. John Tancurak, $1,337. -50.
George E. Wright, .51.000.
Coal, Col. Smual Evans's heirs, $4,000.
Youghiogheny Southern R. E. Co., $1,100.
Unmined coal and surface, respectively, together with 2.50 coke ovens, being all
the property of the Juniata Coke Co-, $148,000.
Annual meeting stockholders Jan. 11, 1910.
Coal, tmder lot Dora E. Manst, $475.
Coal, resene 0.113 of an acre in ribs E. E. Hissem, $1,310.
Thomas N. Eastman, $2,478.98.
Wm. F. Soisson,$l,etc.
26, purchase under lot, Wm. F. Soisson.
Under lot Wm. F. Soisson; total, $8,635.50.
Coal, Edward Tool, $119.
Coal, Frederick Hostetter.
Coal, under lot Joseph H. Antram, $.500.
Coal, Cyrus J. Miller, $1,728.
Jackson Boswlck, $380. 50.
Coal, Herman Lackman, $433.
Coal, Ann Stauffer, $1,750.
Coal, Chas. E. Gilmore, $218.31.
Joseph Blanc, $756.
UNITED STATES STEEL COKPOEATION.
Minutes of board of directors — Continued.
4161
Acres
stated to
be coal.
0.087
2.521
.165
1.072
.2686
.3581
1.652
.150
1
8.499
1.77-
.628
.762
Acres
stated to
be surlace
and all
others.
.071
.207
.25
11. 791
2.25
.11
5.25
3
.174
.272
.312
2,644.114
519.48
Annual meeting stockholders Jan. 11, iS20— Continued.
J. L. Berg, $209.
Geo. W. Baker, 82,521.
Coal, Caroline Burgess, $162.40.
Purchase from John L. Eose et al. Mar. 6, 1 909, of all the 9-foot vein of coal under
tract of land containing 130 purchase Imown as Allan J. Eose reservation situ-
ate in Mount Pleasant Township, Westmoreland County, Pa., consideration,
$800.
Coal, Mary A. Brechbill, $6,233.
Purchase from James Shumar, Mar. 18, 1909, of all 9-foot vein of coal under lot
situate in Mount Pleasant Borougli, Westmoreland County, Pa., $162.72.
Coal,under lot.
Acres.
Pennsylvania E. E.
Coal, under lot Cathrine Kaeff, $1,000.
Coal, luider lot ConnellsviUe Central Coke Co., $1 and exchange.
Coal, Wilson S. Wiele, $1,2S0.
Coal, Mary A. Brechbill, $500 and exchange.
John E. Carothers, $1 and exchange.
Purchase from Narmie S. Eitohey June 4, 1909, of all 9-foot vein of coal under lot
No. 378, Ashman and Torrance addition to New Haven, now in ConneUsvllle
Borough Fayette County, Pa., $400.
Coal, Geo. Work, $1 and exchange.
Wesley Metz, $58.
Coal, under lot Geo. H. Hahn, 8400.
Lawson Havener, $1.
Purchase from James C. Sheppard, July 28, 1909, all 9-foot vein of coal imder lot
No. 390 in Aslmian and Torrance addition to New Haven, now ConnellsviUe,
Fayette County, Pa., 8210.
Carnegie Land Co., $2,500.
Purchased from Jacob N. Davis by deed Aug. 21-, 1909, of 9-foot vein of coal under
lot situate in Mount Pleasant Borough, Westmoreland County, Pa., $113 69.
Purchase from Chas. J. Witt Aug. 21 , 1909, 9-foot vein of coal under lot situate, in
Mount Pleasant Borough, Westmoreland County, Pa., 3312.64.
Purchase from Mary E. Noble by deed dated Aug. 23, 1909, of 9-foot vein of coal
under lot 5,626 square feet situate in Mount Pleasant Borough, Westmoreland
County, Pa., $146.36.
Purchase from David Kough Aug. 23, 1909, 9-foot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $184.92.
Purchase from Jacob M. Miller Aug. 27, 1909, 9-loot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $207.71.
Coal, under lot Lawrence M. Wertz, $2,000.
Purchase from Albert E. Mason Aug. 30, 1909, 9-foot vein of coal under lot situate
in Moimt Pleasant Boitough, Westmoreland County, Pa., $182.32.
Purchase from W. D. Newel Aug. 31, 1909, 9-foot vein of coal under two lots situate
in Mount Pleasant Borough, Westmoreland County, Pa., $233.03.
Acres surface, M. T. Nixon, $225.
Purchase from Albert Mortimer Sept. 25, 1909, 9-foot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $124.42.
Purchase from John Antoni Oct. 6, 1909, of 9-foot vein of coal under lot situate In
Mount Pleasant Borough, Westmoreland County, Pa., $171.03.
Purchase from Alva W. Cotton Oct. 13, 1909, 9-foot vein of coal under lot No. 3,
in F. C. Eobinson addition to Uniontown, Fayette County, Pa., $100.
Purchase from Frank Pacarick Oct. 20, 1909, 9-foot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $126.70.
Purchase from Daniel Sturgeon, Oct. 29, 1909, of 9-foot vein of coal under lot No, 3 0
in Wra. A. McDowell addition to Uniontown, Fayette County, Pa., $100.
Coal, Isaac H. Brownfleld, exchange.
Coal, Ewing J. Herr, $,'5,250.
Coal, J. E. Sanderson, $3,000.
Purchase from John McDonald, Nov. 4, 1909, 9-foot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $557.61.
Purchase from Eice B. Freed, Nov. 10, 1909, 9-foot vein of coal under lot situate
in Mount Pleasant Borough, Westmoreland County, Pa., $189.30.
Coal, Joseph Shaffer, $1,000.
Purchase from Wm. Haught, Dec. 2, 1909, 9-foot vein of coal under lot No. 61 in
Eobinson addition to Uniontown, Fayette County, Pa., $60.
Purchase from Marion A. W. Donohue, Dec. 2, 1909, 9-foot vein of coal under lot
No. 61 in Eobinson addition to Uniontown, Fayette County, Pa,
Youghiogheny Southern E. E. Co., $1,000.
Acres of coal and surface, respectively, Clairton Steel Co., $2,284,448.03.
4162
UNITED STATES STEEL COBPOBATION.
Minutes of board of directors — Continued .
Acres
stated to
be coal.
Acres
stated to
be surface
and all
others.
0.110
A nnuttl meeting atocklioUets Jan, to, 1911.
Henry S. Martz, lease one year, $50.
Thaw Coke Trust.
2.868
8
George Brechbill, $8,809.14.
James Steele, 1509.61.
E. 0. Hershberger, S294.96.
Carnegie Land Co., 11.
Sarah J V. Howard, J223 96.
.51
.295
0.069
.224
Purchase from Elizabeth Scott, Jan. 31, 1910, all 9-toot vein of coai:underlotNo.56
in Eobinson plan, Uniontown, Fayette County, Pa., $150.
1.179
4.306
John W. Giffen, $4,306.
Coal, Jos. C. Kuhns, $1 and exchange.
Purchase from Wm. W. Francis, Mar. 26, 1910, 9-foot vein of coal under lot No.
45J, 46, containing 6,720 square feet In McDowell plan, Uniontown, Fayette
County, Pa., $200.
Purchased from Michael Shoup, reserving 1.417 acres and railroad right of way,
6.038 acres, and 4.626 acres, $135,000.
Oliver P. Markle, $140.
.0464
130.37
.14
.1849
Mary Ryder, $122.50.
Frank PfeifEer $199 54
. 19964
.2654
Mattie C. Bingaman, $225.39.
Mate! Calta, $128.10.
Purchase from Wm. B. McCormiok, June 7, 1910, 9-foot vein of coal under
following lots in Robinson Southside addition to Uniontown in South Union
Township, Fayette County, Pa.
Lots Nos. 34 and 35, no area given.
Lot No. 23, 7,020 square feet.
Lots Nos. 26 and 27, 10,687.6 square feet.
Lot No. 46, 5,790 square feet.
Lot 62, 6,210 square feet.
Lot 64, 6,330 square feet, $1,025.
Wm. Price, June 11, 1910, $173.28.
Frank Steel, $149 68
.128
.1734
.1497
Coal Anton Devorak $149 68
.159
Coal, Susanna Gommary, $159.09.
Coal, Wm A Wilson $188 91
.1889
.1168
Coal, Ezry Summy, $93.42.
J. Shangley, $1 and exchange.
Coal Sarah A Johnson Sl.^7
.969
.1120
.101
Coal, Mary J. Miller, $123.
Coal. Sadie Bittner S188 01
.188
.184
2.167
Reserving 40 per cent of 0.04 of an acre, net area 2.007, Sarah E. Taylor, $2,007.
Purchase from Mount Pleasant Township school district. Sept 17, 1910, 9-foot
vein of coal under Hillside School lot, net area 0.9 acre, $900.
67.002
.507
Wm. W. Parshall
1.304
Wm. A. Hawkins, $1 and exchange.
Coal, Jasper C. Fretts, $3,000.
Coal, Isaac Woods, $1
4
.351
.186
60 per cent of the 9-foot vein.
60 per cent of the 9-foot vein.
.23
.162965
.18474
Adatn ^^""111011800 $184 74
.192
Margaret Kelly, $153.46.
Coal, Michael Cullom $146 55
.183
Purchase from Mary fe. Walker, Oct. 22, 1910, 9-foot vein of coal under lot No. 3
in McDowell's addition to Uniontown, Fayette County, Pa. , containing 4,400
square feet, $100. ji , t.
Coal, A. D. Stauffer, $243.45.
Coal, August Grosser, $129.20.
.24345
.1292
UNION SUPPLY CO.
Board of Dieeotors' Minutes and Stockholders' MiNtrrEs as
Extracted.
Articles of incorporation filed March 24, 1902. Paragraph 2
thereof provides that —
Said corporation is formed for purpose of dealing in all kinds of merchandise at retail.
The capital stock was originally $1,000 and was later increased to
8500,000.
March 22, 1902.
Meeting of directors.
proposition to union supply CO. (ltd.).
The president submitted a proposition dated this day to be made
to the Union Supply Co. (Ltd.), whereby this company offers to
purchase all the assets of the Union Supply Co. (I/td.), as they are
on March 31, 1902, for the sum of $913,066.66, payable as follows:
Four hundred and ninety-nine thousand dollars in the fully
paid-up capital stock of this company at par and .the balance
of $414,066.66 by this company assuming and agreeing to pay
that amount of the indebtedness of the Union Supply Co.
(Ltd.), this company to take over all assets, real and per-
sonal, including real estate, buildings, merchandise, fixtures, sup-
plies, accounts, and bUls receivable and cash on hand of the said
Union Supply Co. (Ltd.) as they are on March 31, 1902, and take
over all tne contracts of said company, including contracts of the
einployees. y
Upon motion of W. W. Blackburn, seconded by S. H. Woddell,
the president was authorized and directed to submit said offer to
the Union Supply Co. (Ltd.), and in case of its acceptance the
officers of this company are authorized and directed to take all
steps necessary to carry out said proposal.
April 1, 1902.
Meeting of directors.
Proposal to Union Supply Co. (Ltd.) accepted by said company.
Increase of capital stock to $500,000 approved.
UNION supply CO. (LTD.).
The capital stock of the Union Supply Co. (Ltd.) was $75,000, and
the capital stock was increased to $500,000 on or about April 16, 1902,
when the Union Supply Co. was incorporated. (See minutes of
directors of the Carnegie Co., Apr. 16, 1902.) (Considerable matter
is recorded in the minutes of the H. C. Frick Coke Co. concerning
the Union Supply Co. (Ltd.), and that matter is extracted hereunder.)
Three hundred and sixty-six and two-thirds per cent dividends
were paid by the Union Supply Co. (Ltd.) from January 1 to October
1, 1898. (See minutes directors H. C. Frick Coke Co., Sept. 28,
1898.)
Four hundred and sixty-six and two-thirds per cent dividends
were paid by the Union Supply Co. (Ltd.) from January 1 to Decem-
ber 28, 1898.
4163
4164
UNITED STATES STEEL CORPOEATION.
Three hundred per cent (or $225,000) dividends were paid by the
Union Supply Co. (Ltd.) from January 1, 1899, to December 31,
1899. (See minutes directors H. C. Frick Coke Co., Jan. 24, 1900.)
Two hundred per cent' (or $150,000) dividends were paid by the
Union Supply Co. (Ltd.) for the year 1900. (Minutes directors
H. C. Frick Coke Co., Jan. 30, 1901.)
One hundred per cent (or $75,000) dividends were paid by the
Union Supply Co. (Ltd.) for the year 1901. (Minutes directors
H. C. Frick Coke Co., Jan. 16, 1902.)
Four hundred and thirteen thousand and sixty-six dollars and
sixty-six cents in dividends were paid by the Union Supply Co.
(Ltd.) for the year 1902.
The earnings from 1902 to 1910, inclusive, were $4,339,140.70.
Dividends declared by Union Supply Co.
Date of meeting when declared.
1. May 27, 1903..
2. Sept. 23, 1903.
3. Dec. 28, 1903..
4. Mar. 23, 1904.
5. June 22, 1904.
6. Aug. 24, 1904.
7. Oct. 26, 1904..
8. Dec. 28, 1904..
9. Feb. 22, 1905..
10. May 24, 1905..
11. July 26, 1905..
12. Aug. 23, 1905.,
13. Sept. 27, 1905.
14. Oct. 28, 1906..
15. Nov. 18, 1906.,
16. Jan. 22, 1906..
17. Feb. 21, 1906.
18. Mar. 21, 1906.
19. Apr. 18, 1906.
20. May 16, 1906.
21. June 20, 1900.
22. July 18, 1906..
23. Aug. 15, 1906.,
24. Sept. 19, 1906.
25. Sept. 27, 1906.
26. Nov. 21 1906..
27. Dec. 20, 1906..
28. Jan.
29. Feb.
30. Mar.
31. May
32. June
33. July
34. Aug.
35. Sept.
36. Nov.
37. Dec
9,1907...
20,1907..
20,1907..
15,1907..
19,1907..
17,1907..
21,1907.,
18, 1907 ,
20,1907.,
18,1907..
Per
cent.
10
20 I
20
12
Amount
for divi-
dends.
$60, 000
100,000
100,000
260, 000
60,000
50,000
60,000
50,000
50,000
250,000
60,000
76, 000
75,000
100,000
36,000
36,000
35,000
405,000
36,000
35j000
35.000
35,000
76,000
40,000
255,000
80,000
40,000
40,000
60,000
40,000
45,000
550,000
40,
40,
40,
80,
40,
80,
40,
40,
40,
60,
500,000
Date of meeting wlien declared.
38. Jan. 16,1908..
39. Feb. 19, 1908..
40. Apr. 16, 1908..
41. May 20, 1908..
42. July 15, 1908..
43. Sept. 16, 1908.
44. Nov. 18, 1908.
45. Jan
46. Feb.
47. Apr.
48. May
49. June
50. July
51. Aug.
62. Sept,
53. Oct.
54. Nov,
56. Dec.
13, 1909..
17, 1909..
21, 1909..
19, 1909. .
16, 1909..
21, 1909..
18, 1909..
15, 1909.
20, 1909..
17, 1909.
16,1909..
56. Jan.
57. Feb.
68. Mar.
59. Apr.
60. May
61. June
62. July
63. Aug.
64. Sept.
66. Oct.
66. Nov.
07. Dec.
12, 1910 .
16,1910..
16, 1910. .
20, 1910. .
18, 1910. .
15, 1910..
19,1910..
17,1910.,
21, 1910.
19, 1910..
16, 1910.
21,1910..
68. Jan. 24, 1911..
69. Mar. 15, 1911 . ,
70. Apr. 19, 1911.
71. May 17, 1911..
72. June 21, 1911.,
73. July 18, 1911..
74. Aug. 16, 1911.
76. Sept. 20, 1911.
Per
cent.
18
Amount
for divi-
dends.
S40,000
40,000
40,000
40,000
40,000
80,000
40,000
320,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
440,000
40,000
40,000
40,000
80,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
520,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
320,000
Or total dividends in 9 years of $3,550,000.
irNITED STATES STEEL COKPOEATION. 4165
Balance sheet of Union Supply Co., Dec. SI, 1910.
Cost of properties $274, 554. 36
Deferred charges to operation 256. 67
United States Steel Corporation depreciation fund 38, 877. 03
Inventories 638, 407. 27
United States Steel Corporation clearance account 321, 512. 26
United States Steel Corporation insurance fund 51, 853. 00
Accounts receivable, general 977. 98
Agents' balance. ..'. 2, 400. 17
Cash 90,034.79
1 1, 398, 873. 53
Accounts payable, general 97, 453. 59
Accrued taxes 16, 981. 84
Depreciation and extinguishment funds 68, 877. 03
Insiuance funds 51, 853. 00
Appropriated surplus to cover investment in property 48, 066. 55
Surplus accrued since Apr. 1, 1901 615, 641. 52
Capital stock 500, 000. 00
Dividends declared by Union Supply Co.
1, 398, 873. 53
Date of meeting when declared .
1.
2.
3.
4.
6.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22
23.
•24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
36.
36.
37.
May 27, 1903..
Sept. 23, 1903.
Dec. 28, 1903..
Mar. 23, 1904..
June 22, 1904.
Aug. 24, 1904..
Oct. 26, 1904..
Dec. 28, 1904. .
Feb. 22,1905..
May 24, 1905..
July 26, 1905..
Aug. 23, 1905..
Sept. 27, 1905.
Oct. 28, 1905..
Nov. 18, 1905..
Jan. 22, 1906..
Feb. 21, 1906..
Mar. 21, 1906..
Apr. 18, 1906..
May 16, 1906..
June 20, 1906. .
July 18,1906...
Aug. 15, 1906..
Sept. 19, 1906..
Sept. 27, 1906..
Nov. 21. 1906..
De»20, 1906. . .
Jan. 9, 1907
Feb. 20, 1907...
Mar. 20, 1907...
May 15,1907...
June 19,1907..
July 17,1907...
Aug. 21, 1907...
Sept. 18, 1907..
Nov. 20, 1907...
Deo. 18, 1907...
Jan. 15, 1908...
Per
cent.
Amount
tor divi-
dends.
10
20
20
10
10
10
10
10
10 i
15
15
20
7
7
7
7
7
7
7
15
8
16
$50,000
100, 000
100, 000
60,000
60,000
50,000
60,000
60,000
50,000
75,000
75, 000
100,000
35,000
36,000
36, 000
35,000
35,000
35,000
36, 000
75,000
40,000
80, 000
40, 000
40,000
50,000
40,000
45,000
40,000
40,000
40,000
80, 000
40. 000
80,000
40, 000
40,000
■40,000
60,000
40,000
Date of meeting when declared.
39. Feb. 19, 1908..
40. Apr. 16, 1908..
41. May 20, 1908..
42. July 15, 1908..
43. Sept. 16, 1908.
44. Nov. 18, 1908..
46. Jan. 13, 1909..
46. Feb. 17, 1909..
47. Apr. 21, 1909..
48. May 19, 1909..
49. June 16,1909.
60. July 21,1909..
61. Aug. 18, 1909..
62. Sept. 16, 1909.
53. Oct. 20, 1909..
54. Nov. 17, 1909..
55. Dec. 16, 1909..
56. Jan. 12, 1910..
57. Feb. 16,1910..
58. Mar. 16, 1910..
59. Apr. 20, 1910..
60. May 18, 1910..
61. June 16, 1910..
62. July 19,1910..
63. Aug. 17, 1910..
64. Sept. 21, 1910.
65. Oct. 19, 1910..
66. Nov. 16, 1910..
67. Dec. 21, 1910..
68. Jan. 24, 1911 . .
69. Mar. 16, 1911..
70. Apr. 19, 1911..
71. May 17, 1911..
72. June 21, 1911..
73. July 18,1911...
74. Aug. 16, 1911...
75. Sept. 20, 1911..
Per
cent.
16
Amount
for divi-
dends.
S40, 000
40,000
40,000
40, 000
80,000
40,000
40,000
40,000
40, 000
40,000
40,000
40,000
40,000
40, 000
40,000
40,000
40,000
40,000
40,000
40,000
80,000
'40,000
40,000
40,000
40,000
40,000
40.000
4o;ooo
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40, 000
1 Error of 320,000 in typing items.
4166 united states steel. coeporation.
June '28, 1905.
Meeting of directors.
Purchased store of Hecla Supply Co. (Ltd.) as follows:
No. 1. Store, Hecla, merchandise, fixtures, etc $10,218.05
No. 2. Store, Tiauger, merciandise, fixtures, etc 11, 799. 62
No. 1. Store building, Hecla, Pa 3,000.00
No. 2. Store building, Trauger, Pa 3,500.00
Total .' 28, 517. 67
On June 8, 1911, Mr. Elbert H. Gary swore before this committee
(vol. 5, p. 238) :
Where we have stores, and -we have not very many, we have made it certain that
the goods were sold to the men at prices less than they could purchase the same things
elsewhere.-
AMERICAN BRIDGE CO. OF NEW JERSEY, NO. 1.
Minutes of Board of Dikectoes, Beginning May 4, 1900, as
exteacted.
May 4, 1900.
Meeting of board of directors.
Present: Directors Edward M. F. Miller, Robert S. Green, J. C.
Bancroft Davis 2d.
The directors met pursuant to waiver, consent and designation
duly signed by all directors. Edward M. F. Miller was elected presi-
dent; Robert S. Green was elected secretary; and J. C. Bancroft
Davis was elected treasurer. Frank Conger, of Groton, N. Y., was
elected agent of the company in New York.
ME. LADD'S PEOPOSITION FOE PUECHASE OF PLANTS,
The president thereupon stated to the board that Mr. I. Gifford
Ladd desired to make a statement respecting certain bridge building
and structural plants, works, and properties owned or controlled by
him.
On motion, regularly made and seconded, it was duly resolved that
Mr. Ladd be requested to present a statement to the board in person.
Mr. Ladd thereupon appeared before the board and stated in sub-
stance that he owned of controlled or had duly contracted to acquire
certain bridge building and structural plants, works, and properties,
comprising the bridge-building plants and structural works of the
American Bridge Works, located at Chicago, 111., Bellefontaine
Bridge Co., located at Bellefontaine, Ohio; Berlin Iron Bridge Co.,
located at East Berlin, Conn.; Buffalo Bridge & Iron Works, located
at Buffalo, N. Y. ; Canton Bridge Co., located at Canton, Ohio; Car-
negie Steel Co. (Ltd.), located at Pittsburgh, Pa., and known as
the Keystone bridge plants; Chicago Bridge Co., located at Chicago,
111.; J. B. & J. M Cornell, located at New York, N. Y.; Detroit
Bridge & Iron Works, located at Detroit, Mich.; Edgemoor Bridge
Works, located at Edgemoor, Del.; Elmira Bridge Co., located at
Elmira, N. Y.; Gillette-Herzog Manufacturing Co., located at Min-
neapolis, Minn.; Groton Bridge & Manufacturing Co., located at
Groton, N. Y.; Hilton Bridge Construction Co., located at Albany,
N. Y.; Horseheads Bridge Co., located at Horseheads, N. Y.; Eang
Bridge Co., located at Cleveland, Ohio; Koken Iron Works, located
at St. Louis, Mo.; Lafayette Bridge Co., located at Lafayette, Ind. ;
Lassig Bridge & Iron Works, located at Chicago, 111.; Nelson & Bu-
chanan Co., located at Chambersburg, Pa.; New Columbus Bridge
Co., located at Columbus ,Ohio; New Jersey Steel & Iron Co., located
at Trenton, N. J. ; Passaic Rolling MiU, located at Passaic, N. J. ; Perm
Bridge Co., located at Beavers Falls, Pa.; Pittsburgh Bridge Co.,
4167
4168 UNITED STATES STEEL. CORPORATION.
located at Pittsburgh, Pa.; Post & McCord, located at New York,
N. Y.; Rochester Bridge & Iron Works, located at Rochester, N.Y.;
Schultz Bridge & Iron Co., located at McKees Rocks, Pa.; Shiffler
Bridge Co., located at Pittsburgh and Mifflin Township, Pa.; Toledo
Bridge Co., located at Toledo, Ohio; Union Bridge Co., located at
Athens, Pa.; J. G. Wagner Co., located at Milwaukee, Wis.; Wrought
Iron Bridge Co., located at Canton, Ohio; Youngstown Bridge Co.,
located at Youngstown, Ohio; Wisconsin Bridge & Iron Co., located
at Milwaukee, Wis.
Also 10,000 shares of the capital stock and $500,000 face value of
the bonds being the entire outstanding issue of the capital stock and
the entire bonded debt of the A. & P. Roberts Co., a corporation or-
ganized under the laws of the Commonwealth of Pennsylvania, with
an authorized capital stock of $1,000,000.
Mr. Ladd further stated that he was willing to sell the said bridge
building and structural plants to this company and that he considered
and suggested for the consideration of the directors that the value of
the said works and properties combined and as a whole was much
greater than the aggregate amount of the values of each plant sepa-
rately; that the combined earnings of said plants, works, and proper-
ties were in excess of $6,000,000 per aimum, and the profits of said
plants combined would be much larger as many savings would be
effected owing to interchange and distribution of mills and work,
reduced cost of management, and free use of patented inventions,
and the ability of each plant to devote itself exclusively to the manu-
facture of the product for which it was best equipped and adapted.
Mr. Ladd also stated to the board that in case of the purchase by
the company of the said plants, works, and properties, he was wiUing
to subscribe and pay for m cash at par $14,500,000 of this company's
preferred stock. Mr. Ladd fully and in detail described the character
and value of each of the said plants, works, and properties, and the
nature of the business conducted by each of them, submitting state-
ments of their properties, past earnings, and pending contracts, and
then withdrew.
The board thereupon fuUy discussed the offer so made by Mr. Ladd;
and it was resolved that the president and treasurer be appointed a
committee to investigate into the value of said plants, works, and prop-
erties, and shares of stock and bonds, and confer with Mr. Lad!d re-
specting the terms of an agreement for the purchase thereof by this
company and report to the board as soon as practicable.
BY-LAWS.
The by-laws, in Article It, section 1 , places the property and business
of the company under the management and control of the directors,
"who shall at all tunes have the power without the assent or vote of
the stockholders to fix from time to time the amount of the accu-
mulated profits of the company to be reserved as working capital."
Abticle lll.—Committees— Executive committee.
Section 1 There shall be an executive committee, to consist of the president and
treasurer and of five directors of the company, all of whom shall be chosen by and shall
serve during the pleasure of the board of directors. The president shall be the chair-
man of the executive committee. Vacancies in such executive committee shall be
filled by the board of directors.
UNITED STATES STEEL COEPOKATION. 4169
Subject to the control of the board of directors, the executive committee shall have
and may exercise all of the powers of the board which may be delegated for the man-
agement of the business and affairs of the company, except such powers as are conferred
exclusively upon or directed to be exercised only wiUi the approval of the finance
committee or other committees provided for in these by-laws. The executive commit-
tee or board of directors shall fix the salaries or compensation of all the officers or em-
ployees of the companies amounting to $2,500 or upwards * * *.
The executive committee shall keep a record of its proceedings, and shall from time
to time make reports of the same to the board of directors at its regular meetings . Each
member of the executive committee other than the salaried officers of the company
shall be allowed $10 and any traveling expenses actually incurred by them for attend-
ance at any regular or special meeting of the committee.
Finance committee.
Sec. 2. There shall be a finance committee, to consist of the president and treasurer
and of three directors of the company, who shall be chosen by the board of directors or
the executive committee for a term of one year or until the next annual meeting.
The finance committee shall have general supervision and control of the finances
and financial policy of the company. No additional plant or manufacturing proper-
ties shall be acquired and no plants shall be sold or otherwise disposed of except upon
the recommendation and with the approval of the finance committee. No loans shall
be made, paid, or extended by the company and no credit in excess of $50,000 shall be
granted in any one case to customers; nor shall any contract or arrangement be made
for the performance of any work or sale of any supplies or property by the company
payable in whole or in part in stock, bonds, or other evidences of indebtedness of any
company or municipality, nor shall anything but cash be accepted for any work done^
or supplies or property sold unless the approval of the finance committee shall have
been in every case first had and obtained.
Sec. 3. The board of directors of the executive committee may from time to time
appoint and at pleasure abolish such additional committees as they may deem proper.
Such additional committees shall consist of such members and have such powers and
perform such duties as the board of directors or the executive committee may from
time to time designate.
Article IV.
Section 1 provides that the board of directors shall annually appoint an executive
committee and a finance committee.
Article IV.
Section 7 provides that the treasurer shall disburse money as may be ordered by the
board of directors, the executive committee, or the finance committee, etc.
Article IV.
Section 9 provides that the secretary shall record all the votes and proceedings of
the stockholders, of the board of directors, of the executive committee, and of all other
committees in a book or books kept for that purpose.
May 4, 1900.
Adjourned meeting of board of directors.
The committee on the purchase of the properties offered for sale
by Mr. Ladd presented report of the committee, consisting of Messrs.
William H. McCord, Frank Conger, Charles M. Jarvis, and F. M.
Wyant, four gentlemen of reputation and ability and great experience
in the bridge-building and structural-iron business, and that the said
committee had received from them the following report as to the
value of said plants.
(Here follows list as above, numbered from 1 to 36.)
We are familiar with the foregoing properties and plants and the business which
has been carried on therein. We are of opinion that no more desirable or more modem
or better equipped plante could be puicTiaBed by your company in connection with
4170 UNITED STATES STEEL COEPOKATION.
its proposed business. We have no hesitation in stating as our opinion of their col-
lective value that the said plants, exclusive of materials, supplies, and contracts, are
worth at least the sum of $61,000,000. , ^ ^ ^ , ^ , .
We have read the report of Mr. Stephen Little to Mr. I. Gifford Ladd, dated thu
date, concerning the earnings of certain of said plants referred to in said report, and
the busiuess transacted therein, and of the usual profits in the business. We beg to
state that we fully concur with Mr. Little's conclusion that the net manufacturing
profits of such plants as he enumerates, tor the year 1900, should be upward of
$6,000,000.
Yours, truly,
Frank Conqee.
F. N. Wyant.
William H. McCord.
Charles M. Jarvis.
The committee further reported that they had been furnished
with a report of Mr. Stephen Little, a well-known accountant of the
city of New York, who had been making full investigations of the
books of certain of said bridge-building plants for various periods
ranging from 1 to 10 years, and that such report was as follows:
BRIDGE PLANTS.
New York, May 4, 1900.
I. GiFPORD Ladd, Esq., New York.
Dear Sir: I have made an examination of the accounts of the followiug-named
bridge concerns for varying periods prior to December 31, 1898, ranging from 1 to
10 years:
1. Edge Moor Bridge Works.
2. Post & McCord.
3. Berlin Iron Bridge Co.
4. Groton Bridge & Manufacturing Co.
5. Lassie Bridge & Iron Works.
6. Buffalo Bridge & Iron Works.
7. The New Columbus Bridge Co.
8. Pittsburgh Bridge Co.
9. The Nelson & Buchanan Co.
10. The Lafayette Bridge Co.
11. The Gillette-Herzog Manufacturing
Co.
12. Elmira Bridge Co. (Ltd.).
13. Wrought Iron Bridge Co.
14. Youngstown Bridge Co.
15. Koken Iron Works.
16. The Union Bridge Co.
17. The A. & P. Roberts Pencoyd Works.
18. The American Bridge Works.
19. Rochester Bridge & Iron Works.
20. The Hilton Bridge Construction Co.
21. Detroit Bridge & Iron Works.
22. Keystone Bridge Works— Carnegie
Steel Co.
23. Schultz Bridge Co.
24. J. G. Wagner Co.
25. Shiffler Bridge Co.
26. The Horseheads Bridge Co.
From such information I find that the average annual net manufactiiring profits
for said concerns during the period named was $2,842,499.01. Said concerns, all
except the Shiffler and Horseheads plants, have furnished me with reports of their net
manufacturing profits for the year subsequent to that covered by my audit, from
which it appears that such profits of the 24 companies thus reporting for the year 1899
aggregate $4,282,159.49. To this, of course, snould be added the earnings of the
Horseheads and Shiffler companies, whose reports I have not yet received, but in my
judgment, it would be fair to assume that the earnings of those two companies for the
years 1899 and 1900 would show a substantial increase over^ the result as appears
from my audit for the period to December 31, 1898.
Said companies have also reported to me their contracts on hand as of March 1, 1900,
with estimates showing the probable profit to be derived therefrom. On the basis of
the profits shown by such reports, the average annual net manufacturing profit for
the year 1900 of the said plants, outside of the Horseheads and Shiffler companies,
would be $6,201,046.89.
I have been unable as yet to audit or obtain reports from the New Jersey Steel &
Iron Co., so that I can not accurately state any figures in regard to that concern. I
am, dear sir.
Yours, very truly, Stephen Little.
The committee further reported that they had conferred with Mr.
Ladd respecting the terms upon which he would sell the said proper-
ties and transfer the title thereto to the American Bridge Co.; that
UNITE0 STATES STEEL COEPOEATION. 4171
Mr. Ladd proposed to sell, assign, and transfer said plants, works, and
properties upon the terms and conditions provided in the following
agreement:
The agreement provides for the sale of the above list of 35 plants,
together with 10,000 shares of the capital stock and $500,000 face
value of the bonds, being the entire outstanding issue of the capital
stock and the entire bonded debt, of the A. & P. Roberts Co., a cor-
poration with an authorized capital stock of $1,000,000; and also —
Second. The party of tlie first part agrees and covenants to receive and accept in
full payment for said bridge-building plants, structural works, and properties, busi-
nesses, good wUl, and shares of stock and bonds, $20,499,000 par value in preferred
stock and $34,999,000 par value in common stock of said bridge company, together
with the sum of $5,500,000 in cash. Said stock shall be full paid and not liable to
any further call or assessment whatsoever, and the holders thereof shall not be liable
for any further payment in respect of the same.
Sixth. The party of the first part further agrees and covenants to cause to be trans-
ferred to the bridge company the contracts in hand of the plants hereinbefore enumer-
ated and sold and transferred hereunder (excepting the A. & P. Roberts Co.) as of the
dates as of which possession of the said plants, works, and properties, respectively, shall
be delivered to the bridge company, and upon such terms as shall seciure to the bridge
cofirpany an average profit of not less than 15 per cent of the shop cost of performance
of all bridge and structural contracts.
Eighth. The party of the first part further agrees to procure and to deliver to the
bridge company proper agreements in writing and in form acceptable to the bridge
company executed by himself and the persons formerly connected as owners or stock-
holders with the plants sold and transferred to the bridge company hereunder who may
be designated by the bridge company within 10 days from the dates as of which pos-
session of the said plants, respectively, shall be delivered to the bridge company,
to the effect that the said party of the first part and said persons, respectively, w^l not
during the period of 20 years directly or indirectly, without the consent in writing
of the bridge company, engage or be interested in the business of bridge building or
manufacturing or selling structural iron and steel, either individually or as copartners
in any firm or as agents for others, or as officers, directors, or stockholders of any cor-
poration or association other than the bridge company or its successors, in any State,
District, or Territory of the United States or any of its possessions, except the Terri-
tory of New Mexico.
Eleventh. In consideration of the premises the party of the first part agrees to sub-
scribe tor 145,000 shares of the preferred stock of the bridge company of the par value
of $100 each, making in the aggregate $1,450,000 par value, and agrees to pay for the
same in cash at par as called for from time to time by the directors of the bridge
company.
The committee further reported that the said plants, works, and
properties, and shares of stocks and bonds were in their opinion
necessary for the objects and business of the company, and were fully
worth (exclusive of materials, supplies, and contracts) the proposed
Eurchase price of $60,998,000, and they recommended that Mr.
add's proposition be accepted, and that the said agreement be
entered mto to carry out the terms of the purchase.
A resolution adopting these views of the committee and providing
for the purchase was carried.
May 10, 1900.
Meeting of board of directors.
The president reported to the board that Mr. Ladd had stated
that he found himself unable to deliver and convey or cause to be
delivered and conveyed to this company certain of the plants,
works, and properties by him agreed to be sold and transferred
under his agreement with this company dated May 4, 1900, namely,
the plants, works, and properties of the Bellefontaine Bridge Co.,
Canton Bridge Co., Chicago Bridge Co., J. B. & J. M. Cornell, King-
31572— No. 53, pt 2—12 28
4172 UNITED STATES STEEL COEPOEATION.
bridge Co., New Jersey Steel & Iron Co., Passaic Rolling Mill, Penn
Bridge Co., Toledo Bridge Co., and Wisconsin Bridge & Iron Co.
Louis L. Stanton, Frederick P. Yoorhees, and Edward M. F.
MiUer, as appraisers, determined that $4,772,200 preferred and
$4,772,200 common stock should be withheld on account of tlie
present inability of I. Gifford Ladd to deliver the above-named
properties.
It was also resolved that I. Gifford Ladd be paid 157,268 shares of
the preferred stock and 302, 2GS shares of common stock.
AGREEStENT WITH CARNEGIE STEEL CO.
The secretary thereupon presented to the board a proposed form
of agreement between this company and the Carnegie Steel Co.,
dated as of April 30, 1900, relating to the purchase of materials and
supplies by this company and fixing the price thereof.
It was resolved that said agreement be ratiliod and approved and
duly executed.
The agreement is as follows:
This agreement made this 30th day of April, 1900, by and between American Bridge
Co., a corporation organized under the laws of the State of New Jersey, hereinafter
referred to as the bridge company, and Carnegie Steel Co., a corporation organized
and under the laws of the State of Pennsylvania, hereinafter referred to as the steel
company. . ...
Now this agreement witnesseth that the bridge company, in consideration of the
covenants hereinafter contained to be kept generally and performed by_ the steel
company, hereby agrees with the said steel company, its successors and assigns:
That for and during a period of 10 years from the date hereof the bridge company
will purchase from the steel company, and does now hereby agree to purchase, receive,
and pay for at Pittsburgh, Pa,, not less than 51 per cent of all rolled shapes of steel
and not less than 75 per cent of all steel plates and bars required in the business of
said bridge company at all its works during said period of 10 years. The said steel
shall be used in the manufacture of bridges, viaducts, elevated railroads, station
sheds, and work of like character and shall not be resold by the said bridge company
without having undergone some process of manufacture at its works.
The prices to be paid for each class of material shall be the prevailing market prices
thereof^ to be agreed upon in writing monthly between the 15th and 25th days of
the preceding month, the said prices to apply on all orders an'd specifications filed
by the bridge company with the steel comp;iny during said month for which prices
are so fixed.
The terms of sale of the steel material purchased under this agreement shall be
monthly settlements in cash on the 2Uth of each month for the preceding month's
shipments.
In consideration of the undertaking by the bridge company to purchase steel as
hereinbefore set out and of the further covenants herein contained to be kept, done,
and performed by the bridge company, the steel company hereby agrees with said
bridge company, its successors and assigns:
That the steel company agrees b> sell and will manufacture and deliver, on orders
and specifications to be furnished by the bridge company, plates, angles, beams,
channels, and other forms of rolled steel required in the business of the bridge com-
pany as set forth hereinbefore, provided the same be the products of the works of
said steel company.
That during the life of this contract and during the fulfillment of the covenants of
said bridge company herein contained the steel company will not manufacture or
sell any bridges, viaducts, elevated railroads, or station sheds, or any steel material.
It is further mutually agreed as follows:
Should the bridge company not make two-thirds of all the bridges, viaducts, ele-
vated railroads, station sheds, and similar work erected in the United States, then
shall the steel company, if it so elect, have the full right, privilege, and option of again
engaging in the bridge business, after one year's written notice served upon said
bridge company at its general office, and at the expiration of said year this agreement
shall terminate.
UNITED STATES STEEL CORPORATION. 4173
All matters in connection with this agreement upon which difference of opinion
may hereafter exist, whether as to prices of materials or rights and obligations under
this agreement, shall, failing amicable adjustment within two weeks, be determined
by arbitration of three arbitrators, one to be selected by each of the parties hereto
and the third to be appointed by the arbitrators so selected, and the decision of the
said arbitrators or of a majority of them shall be final and conclusive.
The provisions of this contract shall apply to the successors or assigns succeeding
to the business of each of the parties hereto.
In witness whereof the parties hereto have hereunto affixed their respective seals,
duly attested, this day and year first above written. American Bridge Co.'s seal,
E. M. F. Miller, president. Attest: Robert S. Green, secretary. Carnegie Steel Co.'s
seal, L. C. Phipps, second vice president. Attest: A. M. Morelahd, secretary.
(Also form of contract annexed, providing for the transfer to the
bridge company of all contracts of the companies purchased by it,
and guaranteeing a profit of 15 per cent of the shop cost of perform-
ing such contracts or for reimbursement.)
May 11, 1900.
Meeting of board of directors.
J. P. Morgan & Co. were appointed fiscal agents and bankers of
this company.
Resolved, That IQO per cent of one-half of the shares of preferred stock of the com-
pany subscribed for by Mr. I. Gifford Ladd under the terms of the agreement of May
4, 1900, be now assessed and be made payable forthwith.
Mr. Ladd proposed to deliver the entire capital stock of the Detroit
Bridge & Iron Works (namely, 11,995 shares, excepting shares to
qualify directors) and of the Koken Iron Works (1,995 shares, except-
ing shares to qualify directors).
The treasurer reported the receipt of $7,250,000 in cash from Mr.
Ladd on account of call of 100 per cent upon one-half of the amount
of his subscription for $14,500,000 par value of the preferred stock
of this company, and that the officers of the company had duly issued
to Mr. Ladd certificates for 72,500 shares of the said preferred stock
of this company.
(The said sum was deposited with J. P. Morgan & Co.)
The treasurer reported that Mr, I. Gifford Ladd had tendered to
the company proper deeds for the conveyance to the company of the
following plants, works, and properties, namely: American Bridge
Works, Berlin Iron Bridge Co., Buffalo Bridge & Iron Works, Key-
stone Bridge Plant of the Carnegie Steel Co. (Ltd.), Edge Moor Bridge
Works, Elmira Bridge Co. (Ltd.), Gillette-Herzog Manufacturing Co.,
Groton Bridge & Manufacturing Co., Hilton Bridge Construction Co.,
Horseheads Bridge Co., Lafayette Bridge Co., Lassig Bridge & Iron
Works, New Columbiis Bridge Co., Pittsljurgh Bridge Co., Rochester
Bridge & Iron Works, Shiffler Bridge Co., Union Bridge Co., J. G.
Wagner Co., Wrought Iron Bridge Co., Youngstown Bridge Co.; also
certificates for 11,995 shares of the capital stock of the Detroit Bridge
& Iron Works, being the entire capital stock of said company, less
5 qualifying shares held by it directors; also certificates for 1,995
shares of the Koken Iron Works, being the entire capital stock of
said company, less 5 qualifying shares held by its directors; also
certificates for 10,000 snares of the capital stock and $500,000 face
value of the bonds, being the entire outstanding issue of the capital
stock and tl?.e entire bonded debt of the A. & P. Roberts Co.; also
assignments of the leasehold property on which were situated the plants,
works, and properties of Post & McCord, and of the Schultz Bridge &
4174 UNITED STATES STEEL COEPORATION.
Iron Co.; also bills of sale for the personal property on or pertaining
to said plants and pertaining to the Nelson & Buchannan Co., exclu-
sive of cash on hand and bills receivable.
The treasurer reported that this company had accepted the tender
of the said deeds, assignments of leases, bills of sale, and shares of
stock and bonds and that he had paid to Mr. Ladd the sum of
$5,500,000 in cash and had delivered to him certificates in his name
for 157,268 shares of the preferred stock and 302,268 shares of com-
mon stock of this company.
The secretary placed before the meeting agreements which had
been duly entered into on behalf of 'this company for the transfer
and assumption of the contracts on hand at the plants, transfer of
which had been so tendered by Mr. Ladd; that is to say, agreements
dated May 12, 1900, with the following concerns:
American Bridge Works, Berlin Iron Bridge Co., Buffalo Bridge
& Iron Works, Carnegie Steel Co., Edge Moor Bridge Works, Elmira
Bridge Co., (Ltd.), Giflette-Herzog Manufacturing Co., Groton Bridge
& Manufacturing Co., Hilton Bridge Construction Co., Horseheads
Bridge Co., Lafayette Bridge Co., Nelson & Buchanan Co., New
Columbus Bridge Co., Pittsburgh Bridge Co., Post & McCord, Roches-
ter Bridge & Iron Works, Schultz Bridge & Iron Coinpany, Shiffler
Bridge Co., Union Bridge Co., J. G. Wagner Co., Wrought Iron
Bridge Co., Youngstown Bridge Co.
The number of directors was increased from 3 to 21.
May 21, 1900.
Meeting of board of directors.
Eighteen additional directors elected as follows : Percival Roberts,
S., Albert C. Case, Wilham H. McCord, Charles M. Jarvis, WiUiam
. Connell, Walter Hawxhurst, Charles MacDonald, Frank Conger,
James P. Kennedy, Lewis S. Gillette, John F. Alden, Walter D.
Oakman, J. P. Ord, Robert Winson, Charles Steele, Robert Bacon,
Paul F. De Fere, Douglas O. Morgan.
William H. Connell was elected treasurer in place of J. C. Bancroft
Davis, second, resigned.
Percival Roberts, jr., was elected president in place of E. M. F.
Miller, resigned.
Charles MacDonald was elected vice president in charge of railway
bridge contracting; Frank Conger was elected vice president in
charge of highway bridge contracting; William H. McCord was
elected vice president in charge of structural contracting; Charles M.
Jarvis was elected vice president in charge of gener^ operations;
Charles C. Schneider was elected vice president in charge of^engineer-
ing; and James Christie was elected vice president in charg« of
mechanical engineering.
ELECTIOX OF EXECUTIVE COMMITTEE.
Resolved, That the board proceed to the election of the executive
committee. Messrs. Charles Isl. Jarvis, Frank Conger, William H.
McCord, Charles MacDonald, and James P. Kennedy were thereupon
nominated as members of the executive committee, in addition to the
president and treasurer ex officio, and there were no other nomina-
tions. A vote having been duly taken, Messrs. Jarvis, Conger,
McCord, MacDonald, and Kennedy were unanimously elected mem-
UNITED STATES STEEL COEPOEATION. 4175
bers of the executive committee of the company in. addition to the
president and treasurer ex officio.
On motion, duly made and seconded, it was duly resolved that the
board proceed to the election of the finance committee. Messrs.
Charles Steele, Walter G. Oakman, and Robert Bacon were there-
upon nominated as members of the finance committee, in addition to
the president and treasurer ex officio, and there were no other nomi-
nations. A vote having been duly taken, Messrs. Steele, Oakman,
and Bacon were unanimously elected members of the finance com-
mittee of the company in addition to the president and treasurer
ex officio.
Seward, Guthrie & Steele were elected general counsel for the com-
pany in the place of Wall & Green.
J. W. Walker was elected director in place of E. M. F. Miller,
resigned; August Belmont was elected director in place of J. C.
Bancroft Davis, resigned; Abram S. Hewitt was elected director in
place of D. O. Morgan, resigned.
Mr. Ladd proposed to deliver the entire capital stock of the New
Jersey Steel & Iron Co., and the appraisers, L. L. Stanton, Frederick
P. Voorhees, and E. M. F. MiUer, were asked to determine how much
of the sum of $4,772,200 par value of preferred stock and $4,772,200
{lar value of common stock of the American Bridge Co. was hereto-
ore withheld from the consideration paid to Mr. Ladd, and they re-
ported that they "Do hereby determine that the proportion of the
said stock so withheld on account of the pla,nts, works, and property
of the New Jersey Steel & Iron Co. is $400,000 par value of the pre-
ferred stock and $300,000 of common stock of said American Bridge
Co., and that the said I. Gifford Ladd is entitled to receive the said
stock upon the performance of his said agreement as to the plants,
works, and property of the said New Jersey Steel & Iron Co. The
report is dated June 12, 1900, and signed Louis L. Stanton, Frederick
P. Voorhees, Ed. M. F. Miller.
SYNOPSIS OF "supplemental AGREEMENT," BETWEEN LADD AND
THIS COMPANY, DATED JUNE 12, 1900.
The supplemental agreement of June 12, 1900, between Ladd and
the American Bridge Co. recites: (1) The making of the original
agreement of May 4, 1900; (2) the inability of Ladd to dehver the
plants of the Bellefontaine Bridge Co., the Canadian Bridge Co., the
Chicago Bridge Co., J. B. & J. M. Cornell, King Bridge Co., New
Jersey Steel & Iron Co., Passaic RolHng Mill, the Penn Bridge Co.,
the Toledo Bridge Co., and the Wisconsin Bridge & Iron Co. ; (3) the
reduction of $4,772,200 par value preferred stock and $4,772,200 par
value common stock pursuant to the appraisement of the value of
said plants; (4) that Ladd offered to dehver the entire capital
stock of the Detroit Bridge & Iron Works, and that the American
Bridge Co. should pay $46,596.21, the value of materials, etc., and
$225,690.85, the proportion of moneys earned by said Detroit Co. on
May 12, 1900, and $20,417 for permanent additions to the plant of
the Detroit Co., and also $101,112.13, the value of materials in the
Koken plant on May 12, 1900, and $31,904.43, being the proportion
of money earned by the said corporation on May 12, 1900; (5) that
the treasurers of the said two companies should collect the bills receiv-
4176 xj:xited states steel, cokpoeation.
able and pay the debts; (6) that the American Bridge Works is trans-
ferred to this company, subject to a mortgage of $100,000; (7) that
Ladd will transfer the entire capital stock of the New Jersey Steel &
Iron Co. and that the assets of the New Jersey Co. are $475,000
(less $55,863.39 for tools included in the value of the plant) ; (8) that
Messrs. Stanton, Voorhees, and Miller have determined the propor-
tion of Ladd's consideration withheld on account of New Jersey
Steel & Iron Co. to be $400,000 par value of preferred and $300,000
common stock; (9) that the value of the supplies at the New Jersey
plant is $500,000. The agreement then provides for —
(1) The sale of 11,995 shares of the capital stock of the Detroit
Co., being the entire capital stock, less five directors' qualifying
shares; (2) the sale of 1,995 shares of the capital stock of the Koken
Co., being the entire capital stock, less five directors' qualifying shares;
(3) the payment by the bridge company of $292,704.06 for materials,
supplies, etc., at the Detroit plant and earned on contracts May 12,
1900; (4) the payment by the bridge company of $133,016.76 for ma-
terials, supplies, etc., at the Koken plant and earned on contracts May
12, 1900; (5) the conveyance of th^ American Bridge Worlds, subject
to mortgage for $100,000, secured by trust deed from the Chicago
Forge & Bolt Co. to Horace E. Hurlbut, April 16, 1894; (6) the sale
to the bridge company of 467 shares of the New Jersey Steel & Iron
Co., being the entire capital stock, less five directors' qualifying shares;
(7) the issue by the bridge company of $300,000 common stock and
$300,000 par value in preferred stock (the said preferred stock being
the amount thereof retained on account of the failure to transfer
the New Jersey Co.'s plant, namely, $400,000, less $100,000,
par value, deducted by reason of the allowance on account of the
mortgage on the American Bridge Works) ; (8) fixing prices of New
Jersey plant materials; (9) arrangement for loaning money by
Cooper, Hewitt & Co. and the control of the board of directors of the
New Jersey Co. by that concern until their loan is repaid; (10)
collection of bills receivable by the treasurers of Detroit and Koken,
as trustees.
SUPPLEMENTAL AGREEMENT TOR ASSUMPTION OF CONTRACTS.
A supplemental agreement entered into at the city of New York, as of the lat day
of June, A. D. 1900, by and between , party of the first part, and the
American Bridge Co., a corporation organized under the laws of the State of New
Jersey, hereinafter called the "bridge company," party of the second part.
Whereas the parties hereto heretofore entered into an agreement dated May 12,
1900, hereinafter referred to as the "original agreement," relating to the assumption
by the bridge company of contracts of the party of the first part; and
Whereas the party of the first part represents and guarantees that as of May 12,
1900, the amount of expenditures actually made by the party of the first part upon the
contracts so assumed, of which a schedule is hereto annexed, after deducting moneys
received by the party of the first on account of such contracts prior to May 12, 1900,
is the sum of $ ; and
Whereas the parties hereto have agreed to defer the valuation or appraisal of the
contracts so assumed and to provide for the payment of expenditures represented to
have been made thereon by the party of the first part less a proportion thereof to be
retained by the bridge company as hereinafter provided. •
Now this agreement witnesseth that the parties hereto in consideration of the
premises and of the agreements hereinafter recited as well as of the sum of JIO to
each in hand paid by the other, the receipt whereof is hereby acknowledged, have
agreed and covenanted and hereby do agree and covenant as follows:
First. The party of the first part represents and guarantees that the amount of
expenditures actually made by the party of the first part prior to May 12, 1900, upon
UNITED STATES STEEL COEPOKATION. 4177
the contracts, of which a schedule is hereto annexed, after deducting any moneys
received by the party of the first part on account of such contracts prior to said date,
is the sum of $ , and the bridge company agrees to pay to or for account of the
party of the first part the amount of such expenditures as follows:
per cent thereof on or before July 1, 1900; per cent thereof on or before
August 15, 1900; per cent thereof on or before October 1, 1900; the balance of
per cent shall be retained by the bridge company as a guarantee fund until
the committee appointed iu article 4 of said original agreement shall certify that in
his opinion the said contracts so assumed will net to the bridge company an average
clear profit in any event of at least 15 per cent of the total shop cost of performing
the same as guaranteed in said original agreement, and thereupon shall be paid by the
bridge company to the party of the first part as hereinafter provided. The said
committee may determine and appraise the profits of such contracts or any of them,
either before or after the complete performance thereof. If the said committee shall
not certify in writing that in its opinion such contracts so assumed will net to the
bridge company an average clear profit of at least 15 per cent of the total shop cost
thereof, and upon performance of such contracts the same shall not net to the bridge
company an average clear profit of at least 15 per cent of the total shop cost thereof
as aforesaid, or if the said conmiittee shall at any time determine and certify that
the said contracts will not net to the bridge company an average clear profit of at
least 15 per cent of the total shop cost thereof as aforesaid, specifying the amount
of the appraised deficiency, then and in either event the amount of the said guar-
anteed fund so reserved shall from time to time be applied by the bridge company
to the payment of any deficiency in such guaranteed profit of 15 per cent resulting
from the performance of such contracts or so determined upon by the said committee.
Any surplus of such guaranteed fund thereafter remaining shall be paid over to the
party of the first part, but the amount of any deficiency in such guaranteed net profits
in excess of such guaranteed fund shall be paid by the party of the first part to the
bridge company. And the party of the first part guarantees to the bridge company
the payment of all moneys which became due upon said contracts, of which a schedule
is hereto annexed, since May 12, 1900, or which may hereafter become due thereon.
Second. The party of the first part reaffirms the guarantee contained in article 3 of
said original agreement and as herein modified said original agreement of May 12,
1900, between the parties hereto is hereby ratified. And the party of the first part
hereby expressly authorizes and empowers the bridge company in the name of the
party of the first part, or otherwise, to collect, receive, and receipt for all moneys,
bills, and accounts receivable which became due upon the contracts, of which a
schedule is hereto annexed, since May 12, 1900, or which may hereafter become due
thereon. And the party of the first part likewise expressly authorizes and empowers
the bridge company in the name of the party of the first part, but for the benefit
and at the expense of the bridge company, at any time hereafter to bid for, enter
into, or perform any and all additional contracts for bridges or bridge or structural
work or to do any and all things which may be necessary or to the bridge company
may seem desirable in the premises, the bridge company agreeing to indemnify and
hold harmless the said party of the first part from all claims or liability in respect
of any such additional contracts.
Third. The party of the first part reaffirms its obligation to consider all moneys
receivable by it from the bridge company under this or any other agreement as a trust
fund primarily applicable to the payment and satisfaction of all debts and liabili-
ties of the party of the first part and expressly agrees to pay and fully discharge all
its debts and liabilities with all due speed.
In witness whereof the parties hereto have caused these presents to be duly executed
as of the day and year first above written.
In presence of —
American Bridge Co.,
By , President.
Attest:
, Secretary.
November 1, 1900.
Meeting of board of directors.
The members of the executive committee were elected, as follows
(in addition to the president and treasurer ex officio) : Charles MacDon-
ald, William H. McCord, Charles M. Jarvis, Frank Conger, James P.
Kennedy.
4178 UNITED STATES STEEL COfiPOKATION.
The members of the finance committee were elected, as follows (in
addition to the president and treasurer ex officio) : Charles Steele,
Walter G. Oakman, Eobert Bacon.
Percival Roberts, jr., was elected president.
William H. Connell was elected treasurer.
The president read to the meeting the report of the executive com-
mittee of the company covering the operations of the company from
the date of its organization. The original was ordered to be filed in
the archives of the company.
Mr. Steele, a member of the finance committee, made a brief state-
ment covering the financial operations of the company since its organ-
ization. He stated that the period of existence of the companyhad
been so brief that it had not been practicable to present a total report
of its financial condition, but that it could be stated in a general way
that the operations of the company had been entirely successful and
that the future outlook was veiy promising.
December 17, 1900.
Meeting of board of directors.
The secretary read to the meeting the minutes of a meeting of the
finance committee held December 13, 1900, recommending the adop-
tion of the following resolutions. (Resolution for dividend of 2| per
cent.)
January 17, 1901.
Meeting of board of directors.
The president thereupon submitted a report embodying a report
of the executive committee embracing the operations of the company
since the last meeting of the board of directors. On motion regularly
made and seconded it was duly resolved that the said report be ac-
cepted and adopted and that the original thereof be filed and preserved
among the archives of the company.
Mr. Steele, a member of the finance committee, thereupon pre-
sented to the board an original agreement, dated December 17, 1900,
entered into between Frederick P. Voorhees and this company for the
purchase by this company from the said Frederick P. Voorhees of 1,000
shares of the capital stock of the Alabama Bridge & Iron Co. (except
only a sufficient number of shares to qualify directors) for the sum of
$219,000, payable as foUows: One hundred and forty-six thousand
dollars in preferred stock and $73,000 in common stock of the com-
pany. The said original agreement of December 17, 1900, was or-
dered to be kept among the archives of the company.
Mr. Steele, a member of the finance conunittee, thereupon pre-
sented to the board an original agreement dated January 11, 1901,
entered into between this company and the American Bridge Co.
of New York for the assignment by this company to the said company
of all contracts for bridges, and bridge and structural work to be
?erformed in the State of New York, for the furnishing to the New
ork company of material, as required, at the price of 115 per cent
of cost, and for the sale by this company to the New York company
of its erection tools and equipment for the sum of $90,000, payable
in stock of the New York company.
(Copy of the agreement with Voorhees for the purchase of the
Alabama Bridge & Iron Co. stock will be furnished if desired.)
UNITED STATES STEEL OOEPOKATION. 4179
Frank Conger guaranteed that the indebtedness of the Alabama
Bridge & Iron Co. does not exceed $8,036.70, "in consideration of the
sum of $1 to me in hand paid by Frederick P. Voorhees, the receipt
whereof is hereby acknowledged, and of his entering into the annexed
agreement with Jennie E. Conger for the purchase of shares of stock
or the Alabama Bridge & Iron Co., etc."
(Note. — The agreement between Frederick P. Voorhees and
Jennie E. Conger referred to does not seem to be annexed to the
minutes.)
February 21, 1901.
Meeting of board of directors.
The president thereupon submitted a report embodying a report of
the executive committee embracing the operations of the company
since the meeting of the board of directors of January 17, 1901. The
report was ordered filed in the archives of the company.
REPORT OP VICE PRESIDENT JARVIS RECOMMENDING CONSOLIDATION
OF PLANTS AT PITTSBURGH.
Vice President Jarvis, in charge of the operating department, sub-
mitted a report setting forth tonnage (partly estimated) on hand and
contracted for as of January 26, 1901, and containing a tabulated
statement showing the average cost of production and the production
per man at several representative plants of the company, and recom-
mended that in order to reduce the cost of production and, to increase
the production per man the five plants at Pittsburgh, Pa., be con-
solidated into one modern plant, and that such necessary expend-
itures be authorized as are essential for that purpose, and to the end
that the cost of production may be reduced to the minimum and the
productive capacity of all the plants of the company be increased to
the maximum. On motion, regularly made and seconded, it was
duly resolved that the report be referred to the executive committee
with instructions to report its conclusions to the board of directors
relative to the matters therein set forth in respect of the consolidation
of the plants at Pittsburgh, Pa., and the increased facilities recom-
mended by Vice President Jarvis.
Resolved, That the authority conferred upon the treasurer of this company to indorse
checks and warrants in its name and on its behalf and full discharge for the same to
give, shall apply to check number 456772 issued by Henry M. Denniston, pay director,
United States Navy, for $4,232, drawn upon the assistant treasurer of the United States
at New York, dated February 8, 1901, and that the indorsement of the said check by
tie treasurer of this company be, and the same hereby is, ratified and approved as the
act and deed of this company.
March 21, 1901.
Meeting of board of directors.
The president thereupon submitted a report of the executive com-
mittee made in response to a resolution passed by the board of
directors on February 21, 1901, in respect to the consolidation of the
Elants at Pittsburgh, Pa., and the increased facilities recommended
y Vice President Jarvis.
The president submitted a report embodying the report of the
executive committee, embracing the operations of the company since
the meeting of the board of directors held February 21, 1901. The
4180 UNITED STATES STEEL. CORPORATION.
original report was ordered to be filed among the archives of the
company.
Mr. Steele read to the board from the minutes of the meeting of the
finance committee held March 21, 1901, the following, which was
recommended by the finance committee for adoption by the board
(resolution for If per cent quarterly dividend) :
Kobert Bacon resigned from the finance committee and J. P. Ord
was elected member of the finance committee to fill the vacancy.
AMEKICAN BRIDGE CO.
(A corporation of New Jersey.)
Minutes of Board of Directors Beginning at Meeting of
April 12, 1901, Volume 1, Page 156, et seq.
April 18, 1901.
Meeting of board of directors.
Present: Vice President MacDonald, Case, Coimell, Conger, De
Fere, Hawxhurst, Jarvis, McCord, Oakman, Ord, and Steele.
Report of president embodying report of the executive committee
embracing operations of the company since the meeting of the board
of directors held March 21, 1901, submitted by Vice President
MacDonald and ordered on file.
PURCHASE op TOLEDO BRIDGE CO.
Purchase of 2,500 shares (being all the outstanding stock) of the
Toledo Bridge Co. (excepting only a sufficient number of shares to
qualify directors) for the sum of 11,050,000, payable as follows:
$700,000 in preferred stock and 1350,000 in common stock of the
company, or 7,000 shares of preferred stock and 3,600 shares of com-
mon stock (and the assumption of debts of said company), ratified
and approved.
Statement shows capital stock $250,000, total assets $606,586, and
unpaid dividends $18,375 of Toledo Bridge Co.
May 16, 1901.
President's report embodying report of the executive committee,
embracing operations of company since meeting of board of directors
April 18, 1901, ordered on file.
May 16, 1901—3.30 p. m.
H. ScHOONMAKEK, Esq., Secretary.
Dear Sib: I am just informed by the transfer agent that Messrs. Robert Bacon,
August Belmont, Frank Conger, Lewis S. Gillette, Walter Gawxhurst, Charles M.
Jarvfa, Charles MacDonald, Walter G. Oakman, Robert Winsor, and J. W. Walker,
10 directors of this company, have become disqualified by reason of the fact that all
the shares of stock standing in the names of such directors have just been presented
for transfer and have been transferred.
Yours, truly, American Bridge Co.
William H. Connell, President.
The by-laws were amended to reduce the number of directors from
2 1 to 1 1 . The following directors were elected : Alfred J. Maj or, James
Christie, Paul L. Wolfel, Robert J. Davis, A. L. Schultz, E. A. Muench,
August Zieszing, E. H. Gary, Charles M. Schwab.
Agreement between this company and American Bridge Co. of New
York modifying the agreement of January 11, 1901, approved.
4181
4182 UNITED STATES STEEL COKPOKATION.
Lease of plant of New Jersey Steel & Iron Co., of Trenton, N. J.,
recommended.
Company subscribed for 1,000 shares Canadian Bridge Co., at
$100 per share.
Alfred J. Major elected president.
CONTEACT BETWEEN AMERICAN BRIDGE CO. OF NEW JERSEY AND
AMERICAN BRIDGE CO. OF NEW YORK TO ASSUME CONTRACTS AND
PAY NEW JERSEY COMPANY 115 PER CENT OF SHOP COST FOR MA-
TERIALS.
The substance of the contract is that the New Jersey company
intends to confine itseK to manufacturing and the New York com-
Eany desires to assume the contracts for "manufacture and sale of
ridges, and bridge and structural work throughout the United
States and elsewhere." The contract sells all contracts of the New
Jersey company to the New York company, for which the New York
company agrees "to pay to the bridge company (i. e., the New Jersey
company) a sum which will equal an average of 115 per cent of the
total shop cost of the bridge and structural material furnished to the
New York company."
NEW JERSEY STEEL & IRON CO. (OF TRENTON, N. J.) LEASE.
Lease of plant of New Jersey Steel & Iron Co., of Trenton, N. J.,
at an amount equal to paying 50 per cent dividends on stock of the
New Jersey company.
•
CANADIAN BRIDGE CO. (OF PROVINCE OF ONTARIO) STOCK AGREEMENT.
Agreement by Francis C. McMath and Burnham S. Colburn owning
not less than 500 shares each of the stock of the Canadian Bridge Co.
not to sell the same except to the American Bridge Co., and also to
maintain two nominees of the American Bridge Co. as directors out
of the total five directors of the Canadian company, and also two
auditors of the company, who will be nominated by the American
Bridge Co.
June 20, 1901.
Present: Gary et al.
Modification of agreement with American Bridge Co. of New York
approved.
DESIGNATION OP PLANTS OP THIS COMPANY.
Alabama plant, Albany plant, American plant, Athens plant,
Berlin plant, Brooklyn plant, Buffalo plant, Canton plant, Columbus
Elant, Detroit plant, Edge Moor plant, Elmira plant, Groton plant,
[orseheads plant, Keystone plant, Lafayette plant, Lassig plant,
Milwaukee plant, Minneapolis plant, Pencoyd plant, Pittsburgh plant,
Rochester plant, Schultz plant, Schiffler plant, St. Louis plant,
Toledo plant, Trenton plant. Walker plant, Walkerville plant,
Youngs town plant.
The substance of the modification agreement above referred to
was to exclude from the transfer to the New York company con-
tracts with the following companies, which remain the property of
the New Jersey, company: American Bridge Works; Berlin iron
UNITED STATES STEEL CORPOEATION. 4l83
Bridge Co.; Buffalo Bridge & Iron Works, Carnegie Steel Co. (Ltd.);
Edge Moor Bridge Works; Elmira Bridge Co. (Ltd.); Gillette-Her-
zog Manufacturing Co. ; Groton Bridge & Manufacturing Co. ; Hilton
Bridge Construction Co.; Horseheads Bridge Co.; Lafayette Bridge
Co.; Lassig Bridge & Iron Works; Nelson & Buchanan Co.; New
Columbus Bridge Co.; New Jersey Steel & Iron Co.; Pittsburgh
Bridge Co.; Post & McCord; Rochester Bridge & Iron Works;
Schultz Bridge & Iron Co.; Schiffler Bridge Co.; Union Bridge Co.;
J. G. Wagner Co.; Wrought Iron Bridge Co.; Youngs town Bridge
Co.; Toledo Bridge Co. ; and Alabama Bridge & Iron Co.
GROTON PLANT SHUT DOWN.
Resolved, That in the judgment of the board of directors it is deemed advisable to
shut down the Groton plant as soon as it can be done consistently with the work now
in process of manufactiure at that plant.
September 20, 1901.
alabama bridge & iron co. dissolution.
Resolved, That this company, as the equitable owner of the stock
of the Alabama Bridge & Iron Co., approve of the dissolution of said
company.
October 17, 1901.
Agreement of September 30, 1901, with American Bridge Co. of
New York approved.
The substance of the agreement is that because the New Jersey
company is not satisfied with the volume of business given to it by
the New York company, it was agreed that the New York company
is to place with the bridge company (i. e. New Jersey company)
during each and every month for three years from the date hereof
sufficient orders and contracts so that the charges of the bridge com-
pany for the work and rnaterials performed and furnished thereunder
at the rate fixed in said original and supplemental agreements, shall
equal the sum of $2,200,000 for each and every month during such
period.
Second. In consideration of this agreement, the bridge company
(i. e. the New Jersey company) agrees to pay to the New York com-
pany, upon the execution of these presents, the sum of $1,000,000
and further agrees thereafter to pay to the New York Company the
sum of $100,000 per month during the aforesaid period.
October 28, 1901.
proposition from empire bridge CO. to purchase ALL PLANTS
AND PROPERTY OF AMERICAN BRIDGE CO. FOR $2,996,500, PAYABLE
IN CAPITAL STOCK OF THE EMPIRE BRIDGE CO.
Empire Bridge Co.,
New York, October ^8, 1901.
To the American Bridge Co., Jersey City, N. J.
Dear Sirs: The Empire Bridge Co. has been duly organized under the laws of the
State of New York, with a capital of $1,000,000, for the purpose of carrying on the busi-
ness of manufacturing and selling bridges and bridge and structural work, and pro-
poses to increase its capital stock to $3,000,000.
This company desires to acquire from the American Bridge Co. all the plants, works,
and properties owned by the American Bridge Co. in the State of New York, and
4184 UNITED STATES STEEL COEPORATION.
hereby offers to purchase the same from the American Bridge Co. for the sum o
$2,996,500 payable in the full-paid and nonassessable capital stock of this company.
If this proposition be accepted, this company will assume all contracts entered into
by the American Bridge Co. in connection with the plans purchased, whether for the
construction or erection of bridges, the purchase of material, the manufacture of sale
of structural iron or bridge work, employment of employees, or otherwise.
Yours, truly,
Empire Bridge Co.,
By Abthitk L. Davis, President.
Offer of Empire Bridge Co. accepted, and resolved this company
sell to Empire Bridge Co. its Albany plant, Brooklyn plant, Buffalo
plant, Elmira plant, Groton plant, Horseheads plant, and the Roches-
ter plant for $2,996,500, par value capital stock of Empire Bridge Co.
Resolved, That this company revoke the authority of E. A. Landon, its statutory
agent in New York, and abandon its authority to do business in New York.
November 12, 1901.
detroit bridge & iron works purchased.
All property and assets of the Detroit Bridge & Iron Works was
purchased for $600,000.
October 29, 1902.
economy, pa., plant.
Resolution to construct new plant at Economy, Pa., to cost
$2,677,000.
December 18, 1902.
Economy, Pa., plant to be Icnown as Ambridge plant.
July 24, 1903.
schultz plant fixtures sold and plants in vicinity of pitts-
burgh abandoned in conjunction with construction of
economy- plant.
September 17, 1903.
Sale of portion of Keystone plant authorized to H. K. Porter Co.
NEW JERSEY STEEL & IRON CO. PURCHASE.
Contract selling all assets of Xew Jersey Steel & Iron Co. to Ameri-
can Bridge Co. for S.574,7.36.92 and leasing plant for $13,766.67,
dated October 31, 1900.
Agreement June 30, 1903, between Xew Jersey Steel & Iron Co.
and American Bridge Co. that steel company will pay $279,377.75
for improvements in plant made by American Bridge Co.
December 17, 1903.
Charles MacVeagh appouited general sohcitor for the company.
January 21, 1904.
In view of the contract to be made between Post and McCord and
the American Bridge Co. of Xew York, the said McCord is relieved
TJNITBD STATES STEEL OORPOEATION. -4185
of Ms obligations and disabilities under agreement with the company
as of April 30, 1900.
Resolved, That the company relieve William H. McOord from hia obligations and
disabilities incurred under his agreement with the company as of April 30, 1900, in
so far as to consent to his having become an incorporator, stockholder, and officer of
the said Post & McOord (Inc.), and to consent to his remaining a stockholder and offi-
cer of the said Post & McOord (Inc.), doing such other acts as shall be necessary for
the carrying out of the contract to be made between the said Post & McOord (Inc.)
and the American Bridge Co. of New York, or any modifications for renewal thereof, etc.
April 18, 1904.
Release of claims against I. Gifford Ladd, under contract May 4,
1900, as to agreements that plants transferred to bridge company
should net 15 per cent, etc.
April 29, 1901.
Resolved, That the auditor of this company be, and he hereby is, authorized and
directed to write off to "property" the sum of $2,834,515.62, debiting the amount
thereof to "surplus," and to set up as a credit to "surplus invested in and written off
to 'property'" the said amount of $2,834,515.62.
January 20, 1905.
December 29, 1904, contract between Dering Coal Co. and Illinois
Steel, American Steel & Wire of New Jersey, American Bridge Co.,
American Sheet & Tin Plate Co., to supply all the coal of the buyers,
not less than 900,000 tons and not more than 2,700,000 tons in any
one year. The price shall be 39 cents more than is paid by the
seller as the "mining rate," but not more than the average price
paid in a district where the said mine is located; "provided, however,
that if at any time such 'mining rate' for hand-pick mined coal,
but not machine mined coal, be less than 38 cents a ton or more
than 66 cents a ton such price to be paid by said buyers during such
time shall be readjusted by mutual agreement" or arbitration. Machine
■ mined coal shall cost 5 cents less than the mining rate aforesaid.
April 1, 1905.
American Improvement Co.: 50 shares of stock purchased.
A. & P. Roberts Co.: Lease of plant and works of the A. & P.
Roberts Co. for a rental equal to the net income of the plant received
by the bridge company less the cost of additions, construction, and
improvements. Lease to run until May 1, 1905, or until terminated
by six months' notice.
June 16, 1905.
$576,618.96 written off.
June 20, 1906.
$109,500.20 written off.
May 16, 1907.
youngstown plant to be sold,
Sale of plant of Youngstown, Ohio, recommended, which was
abandoned in 1904, in pursuance of plan for construction of plant
at Economy.
4186 united states steel cokporation.
June 20, 1907.
$146,664.44 written off.
September 15, 1908.
$24,272.74 written off.
November 16, 19p8.
A. & P. Eoberts Co. allowed to purchase $500,000 par value of
bonds of said company owned by American Bridge Co.
March 16, 1909.
Agreement with Pennsylvania Co. operating the Pittsburgh, Fort
Wayne & Chicago Railway Co. for operating said tracks from rail-
road to Ambridge plant, which were constructed by the Pennsyl-
vania Co., is in part as follows:
Now, therefore, it is agreed between the parties hereto that the sidetracks as above
indicated were constructed and are to be maintained and operated upon the following
terms and conditions: * * * (2) The Pennsylvania Co. is to withdraw its bill
against the Berlin Co., the predecessor of the American Bridge Co.
(10) The second party (American Bridge Co. ) agrees that so far as consistent with its
business interests all freight to be transferred over the connection herein provided
for, both that destined to, and also in so far as it controls the routing, that coming
from points that can be reached either by the lines of railway operated or controlled
by the first party, or by a trackable route of which said lines form a part, shall be
shipped over said lines en route and not otherwise, provided the published rates of
freight shall be as favorable as by other routes to or from the same points.
March 15, 1910.
alabama plant recommended to be sold.
The plant heretofore called the Alabama plant, at New D ecatur
Ala., to be sold at not less than $14,000.
TOLEDO PLANT RECOMMENDED TO BE SOLD.
The plant heretofore designated as the Toledo plant to be sold at
not less than $5,500.
REDUCTION OF CAPITAL STOCK.
Recommended reduction of capital stock from $70,000,000,
divided into 700,000 shares of par value of $100 each, consisting of
$35,000,000 par value of preferred and $35,000,000 common stock,
to be reduced to $10,000,000, all of one class, divided into 100,000
shares of $100 each.
Resolution to purchase assets and property of A. & P. Roberts
Co. and of New Jersey Steel & Iron Co. for the sum of $100 in each
case.
Guarantee of a loan to Canadian Bridge Co. by Canadian Bank of
Commerce and People's State Bank, Detroit, Mich.
Gary plant: $2,700,000 appropriated for plant at Garv, Ind., on
land to be purchased at Gary for $144,000.
UNITED STATES STEEL OOBPOBATION. 4187
Nickel contract: Contract with Orford Copper Co. for all nickel
that shall enter into nickel, iron, or nickel-steel or other ferro-nickel
composition which this company shall manufacture at the prices
and upon the terms set forth m said agreement, approved.
Febkuaey 21, 1911.
Contract with Baltimore & Ohio Railroad upon terms and con-
ditions set forth in said contract to construct and maintain electric
transmission cable under tracks and right of way.
Agreement with Elgin, Joliet & Eastern Railroad Co. upon terms
and conditions set forth in said agreement to maintain electric cable,
and so forth, approved.
Agreement with Lake Shore & Michigan Railway Co., upon terms
and conditions set forth in said agreement, to construct two electric
power cables, etc., approved.
May 16, 1911.
Koken Iron Works purchased by American Bridge Co.
June 20, 1911.
New Jersey Steel & Iron Co. purchased by American Bridge Co.
A. & P. Roberts Co. purchased by American Bridge Co.
Dividends were declared quarterly at If per cent, as follows:
September 20, 1901; December 19, 1901; March 20, 1902; June 19,
1902; September 18, 1902; June 18, 1903; June 16, 1904; March 15,
1906; June 20, 1906; September 20, 1906; June 20, 1907; September
19, 1907; December 19, 1907; March 19, 1908; June 15, 1908; Septem-
ber 15, 1908; December 15, 1908; March 16, 1909; June 15, 1909;
September 21, 1909; December 21, 1909; March 15, 1910; June 21,
1910; September 20, 1910; December 20, 1910; March 21, 1911;
June 20, 1911.
31572— No. 53, pt. 2—12 29
AMERICAN BRIDGE CO. OF NEW YORK.
Minutes of Board of Dieectobs as Extracted, January 11,
1901, to July 18, 1911.
January 11, 1901.
The first meeting of the board of directors.
Present: Directors Henry Schoonmaker, Wilbur L. Ball, vice
E resident; Joseph P. Cotton, jr., president; W. de Saussure Tren-
olm,Yice president; Herbert Wright, vice president; John P. Tuomey,
secretary; Robert Walker, treasurer.
The president stated tliat the business for which this company was
incorporated was the taking of contracts for building bridges and
bridge and structural work; that negotiations had been had with the
American Bridge Co. for the purchase by this company of all the
erection tools and equipment of the American Bridge Co. for the sum
of $90,000; that Amencan Bridge Co. was willing to accept stock of
this company at par in payment for aforesaid erection tools and
equipment; and that the American Bridge Co. was willing to assign
to this company all the contracts which it holds for performance m
the State of New York upon the following terms, that is to say: The
American Bridge Co. furnish all the structural material required for
the performance of such contracts, and this company to do the erect-
ing; the American Bridge Co. to receive for such material a sum
equal to 115 per cent of the shop cost of such material; the American
Bridge Co. to have the right to the use of the erection tools and equip-
ment without the State of New York to complete contracts to Be
performed outside the State of New York upon some adjustment to
be made between the American Bridge Co. and this company for the
use of such equipment.
The president also presented to the board a proposed form of
agreement between the American Bridge Co. and this company.
Resolved, That the proper ofiicers of the company be authorized to
issue to or upon the order of the American Bridge Co. certificates for
900 shares of fuU-paid nonassessable stock of tms company.
January 15, 1901.
"^ The following new officers were elected: William H. Connell,
treasurer; Charles MacDonald, vice president; WUliam H. McCord,
vice president; Frank Conger, vice president.
Contract with American Bridge Co. of New Jersey ratified.
March 27, 1901.
Directors increased to 11 and the following elected directors:
Joshua A. Hatfield, August Ziezing, C. C. Schneider, S. P. Mitchell.
Agreements with Koken Iron Works, Detroit Bridge & Iron Works,
and A. & P. Roberts Co. ratified.
Charles M. Schwab elected director,
4188
UNITED STATES STEEL CORPOBATION. 4189
The contract with the New Jersejr Co. for the assignment of con-
tracts to this company in consideration of the agi-eement to pay 115
per cent of the total cost of bridge and structural material furnished
to this company was executed.
All contracts of the Koken Co., the Detroit Bridge & Iron Works,
and A. P. Roberts Co. were transferred to this company upon similar
terms.
JxnsTE 20, 1901.
Resolution for the purpose of conducting the operations of the
erecting department, that the United States be, and hereby are, divided
into three erecting divisions, each to be designated by a name and
respectively embrace the territory hereinafter set f orth^ a8 f qUqws ;
The eastern division (includes States from Maine to Alabama),
The Pittsburgh division (includes southern peninsula of Michigan,
Indiana, Ohio, Kentucky, West Virginia, and portions of Pennsyl-
vania, Maryland, and Virginia) .
The western division (includes northern peninsula of Michigan,
Wisconsin, Illinois, part of Tennessee and Mississippi, and all States
and Territories west of Mississippi River).
Modification agreement authorized substantially as set forth in
minutes of New Jersey Co. of similar date.
October 17, 1901.
Contract with New Jersey company to take business equal to
$2,200,000 each month substantially as set forth in minutes of New
Jersey company.
November 21, 1901.
Tripartite agreement with American Bridge Co., of New Jersey,
and Empire Bridge Co., authorized substantially as set forth in the
minutes of Empire Bridge Co., November 16, 1901.
April 4, 1906.
Present: Gary, Murray and Schoonmaker.
The secretary presented a letter from H. J. Burk, contracting
manager, dated March 30, 1906, referring to a subpoena which had
been served upon him to appear before the United States grand jury
at Pueblo, Colo., on April 9, 1906, and presented also a letter of thia
date which the general solicitor suggested should be sent to the
United States district attorney at Pueblo, Colo.
On motion regularly made and seconded it was unanimously and
duly
Resolved, That the general solicitor of this company be and he
hereby is authorized and directed to send to the United States dis-
trict attorney at Pueblo, Colo., a letter substantially in the form of
that now presented to this meeting; and further
Resolved, That the general solicitor be and he hereby is authorized
and empowered to do any and all things which in his judgment may
seem wise for the purpose of carrying out the intent of the letter to
the United States district attorney hereinbefore referred to.
February 21, 1907.
Raynal C. Boiling nominated for assistant general solicitor.
(Note. — ^Last record of minutes of the company is that of July 18,
1911.)
EMPIRE BRIDGE COMPANY.
-Minutes of Board of Dieectoes as Extracted, October 28,
1901, to July 17, 1911.
October 28, 1901.
First meeting of directors.
Present: G. A. BiUings, Arthur L. Davis, and William C. Post,
incorporators and directors.
Resolved, That the plants of the American Bridge Co., situated at
Brooklyn, Buffalo, Albany, Groton, Horseheads, Elmira, and Roch-
ester are necessary and desirable for the corporate purchases of this
company; and the same are worth $2,996,500. The following also was
authorized:
Empire Bridge Co., New York,
October U, 1901.
To the American Bridge Co.,
Jersey City, N. J.
Dear Sirs: The Empire Bridge Co. has been duly organized under the laws of the
State of New York with a capital of $1,000,000 for the purpose of carrying on the busi-
ness of manufacturing and selling bridges and bridge and structural work and pro-
poses to increase its capital stock to $3,000,000.
This company desires to acquire from the American Bridge Co. all the plants, works,
and properties owned by the American Bridge Co. in the State of New York, and
hereby offers to purchase the same from the American Bridge Co. for the sum of
$2,996,500, payable in full paid and nonassessable capital stock of this company.
If this proposition be accepted, this company will assume all agreements entered
into by the American Bridge Co. in connection with the plants purchased whether for
the construction or erection of bridges, the purchase of material, the manufacture or
sale of structural iron or bridge work, employment of employees, or otherwise.
Yours, truly,
Empire Bridge Co.,
By Arthur L. Davis, President.
October 28, 1901.
Adjourned meeting of board of directors.
The president reported that he had presented the above offer to the
American Bridge Co. and the same had been accepted, and that the
necessary transfers of property had been made for stock of this com-
pany amounting to par value of S2,996,500.
Capital stock iacreased from $1,000,000 to $3,000,000, consisting of
30,000 shares of par value of $100 each.
trxpartite agreement with american bridge co. of new jersey
and american bridge co. of new york and this company
ratified.
November 16, 1901.
A tripartite agreement made and entered into at the city of New
York this 28th day of October, A. D. 1901, between the American
4190
UNITED STATES STEEL OOEPOBATION. 4191
Bridge Co., a corporation of the State of New Jersey, hereinafter
called the "bridge company," party of the first part; the American
Bridge Co. of New York, a corporation of the State of New York,
hereinafter called the "New York company," party of the second
part; and the Empire Bridge Co., a corporation of the State of New
York, hereinafter called the "Empire company," party of the third
part:
Whereas tlie parties hereto of the first and second parts heretofore entered into an
agreement bearing date January 11, 1901, known as the "Original agreement," and
thereafter entered into a supplemental agreement bearing date June 1, 1901, known
as the "Supplemental agreement," and thereafter entered into a modification agree-
ment, and thereafter entered into an agreement bearing date as of September 30, 1901,
heretofore referred to as the "Adjustment agreement"; and
Whereas the bridge coiopany since the execution of the said adjustment agreement
has conveyed and assigned its plants and property within the State of New York unto
the Empire company; and
Whereas the parties hereto desire to provide for an equitable division between the
bridge company and the Empire company of the benefits and obligations as the same
exist under the said several agreements hereinbefore referred to;
Now, therefore, this agreement witneaseth that the parties hereto for and in con-
sjderation of the sum of one dollar to each in hand paid by the other, the receipt of
which is hereby acknowledged, have agreed and covenanted and especially do agree
and covenant to and with each other as follows:
First. The orders and contracts to be placed by the New York company under the
said adjustment agreement aggregating at the rates fixed in said adjustment agreement
the sum of $2,220,000 for each and every one during the period of three years from
September 30," 1901, are hereby apportioned and shall be placed by the New York
company at the rate of $1,850,000 of such orders with the bridge company and every
$350,000 of such orders with the Empire company for each and every month during
said period and at said rates.
Second. The sum of $100,000 per month payable by the bridge company to the New
York company under the said adjustment agreement during the said period is hereby
reduced to the sum of $80,000 per month, payment of which shall be in the manner
provided in said adjustment agreement.
Third. In consideration of this agreement the Empire company agrees to pay to the
New York company the sum of $20,000 per month during the said period, payment of
which shall be made on the last day of each month, beginning with October 31, 1901,
and ending September 1, 1904.
Fourth. The bridge company shall continue to fabricate all work ordered by the
New York company to the extent aforesaid, as reduced by this agreement, and to
fabricate the same in the order of precedence required and prescribed by the New
York company without delays, except only such delays as may arise because of matters
beyond the reasonable control of the bridp;e company.
Fifth. The Empire company a^ees to fabricate all work ordered by the New York
company to the extent aforesaid in this agreement allotted to it and to fabricate the
same in the order of precedence required and prescribed by the New York company,
and without delays, excepting only such delays as may arise because of matters beyond
the reasonable control of the Empire company. And the price payable by the New
York company to the Empire company for work so fabricated shall be the same price
as is provided in the various agreements hereinbefore recited.
Sixth. The bridge company agrees to sell, assim, transfer, and set over, and hereby
does sell, assign, transfer, and set over unto the Empire company, as of the Ist day of
October, 1901, all its contracts and orders from the New York company to be manu-
factured at any of the plants of the bridge company in the State of New York; and the
Empire company agrees to assume said contracts and to perform and complete the
same. The Empire company further agrees to assume, and hereby does assume, all
contracts of the bridge company with employees at any of said plants and all contracts
for purchase of materials and supplies in connection with the contracts hereby assigned
and assumed.
In witness whereof the parties hereto have caused these presents to be duly executed
in their respective corporate names and their respective corporate seals to be hereunto
4192 UNITED STATES STEEL COBPOEATION.
affixed by their presidents and vice presidents and attested by their secretarieB or
assistant secretaries the day and year first above written.
fspAT, 1 American Bridge Co.,
^ J By Alfred J. Major, President.
Attest- H. ScHOONMAKER, Secretary
fs^-{ American Bridge Co. of New York,
^ J" By Joshua A. Hatfield, President.
AttoHt. W. DE Saussure Trenholm,
^^^^^- Assistant Secretary.
[seal.] Empire Bridge Co^
By Arthur L. Davis, President.
Attest: William 0. Post, Secretary.
Febeuaey 17, 1902.
Special meeting of the board of directors. , , j t.
The president thereupon stated to the board that he had been m
communication with the various presidents relative to a proposed sale
of the Groton plant of the company, and requested an expression of
the wishes of the board on the subject.
Special meeting of the board of directors.
Present: E. H. Gary elected director.
Saler of Groton plant for $15,000 approved.
February 20, 1902.
April 17, 1902.
Special meeting of the board of directors.
Sale of Groton plant perfected.
October 29, 1902.
The following officers were elected: Alfred J. Major, president;
William H. Connell, treasurer; Charles C. Price, auditor; Henry
Schoonmaker, secretary and assistant auditor; K. P. Ball, assistant
auditor; W. de Saussure Trenholm, assistant secretary.
September 17, 1903.
December 17, 1903.
April 27, 1904.
June 16, 1904.
Special meeting of board of directors.
Resolution to dismantle Albany plant.
Special meeting of board of directors.
Charles MacVeagh elected general solicitor.
Special meeting of board of directors.
$42,974.88 written off.
Special meeting of board of directors.
Tne president further stated to the board that on account of depres-
sion in business it had been deemed both expedient and necessary to
temporarily close the Buffalo and Horseheads plants and the south
shop at Elmira, but to keep all machinery and equipment of said
plants intact until business shall improve to such an extent as to
justify the resumption of operations in them.
ROCHESTER PLANT DISMANTLED.
Resolved, That the action of the president in having closed and dismantled the
Rochester plant by the removal of the machinery to other plants and in having
temporarily suspended operations at the Buffalo and Horseheads plants, as well aa at
the south shop of the E'mira plant, be and hereby is ratified and approved.
xjkited states steel. ooepoeation. 4193
October 20, 1908.
Special meeting of board of directors.
Construction expenditures, $300,936.81, written off.
Special meetirig of board of directors.
Nit '
November 16, 1908.
Tine hundred and fifty-seven thousond dollars expenditures for
north shop of Elmira plant.
buffalo plant dismantled.
April 18, 1910.
Resolution to dismantle and sell Buffalo plant.
HORSEHEADS PLANT TO BE SOLD.
Resolution to sell Horseheads plant.
June 21, 1910.
Special meeting of board of directors.
Lease of Buffalo plant to Frontier Boiler Co.
Lease of portion of Albany plant to Duncan Wellworth Co.
Note. — The last record in the minutes is that of the meeting of
April 17, 1911.
FEDEEAL STEEL CO.
MiNUTKS OF Board of Directoes from September 9, 1898, to
June 20, 1911.
June 20, 1911.
The certificate of incorporation of the company is dated September
9, 1898.
September 9, 1898.
First incorporators' meetii^.
Present: Charles C. Cluff, Charles MacVeagh, and Benjamin C. Van
Dyke.
The chairman then reported to the incorporators various proceed-
ings and negotiations that had been had with Messrs. J. P. Morgan &
Co., of New York, in reference to the acquisition of at least two-thirds
of the capital stock of the Minnesota Iron Co., the Illinois Steel Co.,
and the Elgin, Joliet & Eastern Kailway Co., and alsothe possible
acquisition of a two-thirds interest in the manufacturing property
and appurtenances of the Lorain Steel Co., at Lorain, Ohio, and the
Johnson Co., of Pennsylvania, all as shown in a proposed agreement
with Messrs. J. P. Morgan & Co., of which a copy was submitted to
the meeting and is annexed to the minutes hereof. Upon motion,
by the affirmative vote of all present, it was resolved that the board
of directors be, and hereby is, authorized, in its discretion, to make
and perform a contract with Messrs. J. P. Morgan & Co. substantially
in the terms of that now submitted to this meeting.
Agreement, Federal Steel Co. with J. P. Morgan & Co., syndicate
managers, dated September 9, 1898.
An agreement made this 9th day of September, 1898, by and between
Federal Steel Co., a corporation organized and existing under the laws
of the State of New Jersey, hereinafter caUed the steel companv,
party of the first part, and J. P. Morgan & Co., of the city of New YorK,
hereinafter caUed the syndicate managers, acting on behalf of a syn-
dicate, parties of the second part.
■V^hereas the steel company has. been organized with an authorized capital of
$200,000,000, of which one-half is 6 per cent noncumulative preferred stock, and one-
half is common stock, as shown by the certificate of incorporation of the steel company,
which was recorded in Hudson County, N. J., on the 9th day of September, 1898, of
which stock there have been issued 30 shares of common stock of the par value of |100
each for $3,000 in cash; and
Whereas, as hereinafter stated, the steel company desires by means of an issue of its
capital stock to purchase or to acquire certain property necessary for the business of
the steel company, and to purchase or to acquire the property or stock of certain
companies owning mining, manufacturing, and producing materials necessary for the
business of the steel company; and
Whereas, after careful mvestigation and appraisement, the board of directors of the
steel company have ascertained, adjudged and determined that the value of the prop-
erty and stock so to be acquired is equal at least to the par value of the stock of the
steel company to be issued therefor; and
Whereas, in order to obtain such property and such stock for the necessarjr purpose
of its corporate business, the steel company has desired and now deems it important
4194
UNITED STATES STEEL OOBPORATION. 4195
to secure the assistance and cooperation of J. P. Morgan & Co., bankers, of the city of
New York, who upon the terms of this agreement have rendered their assistance to the
undertaking and have consented to endeavor to form a syndicate to provide $14,075,000
in money for the purpose of the steel company and to enable it to acquire the property
and the stock of certain other companies hereinafter set forth; and
Whereas J. P. Morgan & Co. have aided and are willing to continue to aid the steel
company by the formation of such a syndicate for such purposes, but only upon con-
dition that a contract be made in the terms hereof; and
Whereas the outstanding capital stock of the Minnesota Iron Co. consists of 165,000
shares of the par value of $100 each; Illinois Steel Co. consists of 186,506.35 shares of the
par value of $100 each; Elgin, Joliet & Eastern Railway Co. consists of 60,000 shares of
the par value of $100 each;
Now, therefore, in consideration of the premises and of the sum of $1 to it in hand paid
by Messrs. J. P. Morgan & Co., the receipt whereof is hereby acknowledged,
(1) The steel company covenants and agrees to and with J. P. Morgan & Co., acting
on behalf of a syndicate substantially as follows:
If on or before December 15, 1898, J. P. Morgan & Co. shall make or shall cause to
be made —
(a) A transfer of not less than two-thirds of the shares of the capital stock of each of
the following companies, viz, Minnesota Iron Co., Illinois Steel Co., and Elgin, Joliet
& Eastern Railway Co.; and
(6) A pajonent of $14,075,000 in cash; the new company thereupon will issue to
Messrs. J. P. Morgan & Co., or to such persons and in such proportions as may be indi-
cated by them, 56,806 shares of the preferred stock of the new company and 454,265
shares of the common stock of the new company and in addition thereto such preferred
stock to an aggregate amount equivalent to the surrendered shares of the constituent
companies estimated at the rates of exchange severally and respectively as follows:
1.355 shares of preferred stock of the new company for each share of the Minnesota Iron
Co.; 1 share of such preferred stock for each share of the Illinois Steel Co.; 0.875 of one
share of such preferred stock for each share of the Elgin, Joliet & Eastern Railway Co.
II. Messrs. J. P. Morgan & Co. agree in good faith to use their best efforts and iaflu-
ence toward bringing about such transfer and payment and in behalf of the syndicate
agree that as a part of and in connection with the proposed transaction and condition
upon the consummation thereof, any and all shareholders of the Minnesota Iron Co.,
of the Illinois Steel Co., and of the Elgin, Joliet & Eastern Railway Co., upon the sur-
render of their shares to the syndicate (together with a cash payment as hereinafter
required) shall have fair and reasonable opportunity for a period of at least 10 days
to acquire and to receive from the syndicate preferred stock and common stock of the
Federal company on the following basis, viz:
Each share of Minnesota company (on payment by it of $27.10 in cash) to receive
135 J per cent in preferred stock of Federal company and 108.40 in common stock of
the Federal company; each share of Illinois commny (on payment by it of $20 in
cash) to receive 100 per cent in preferred stock of Federal company and 80 per cent
in common stock of Federal company; each share of Elgin company (on payment by
it of $17.50 in cash) to receive 87| per cent in preferred stock of Federal company and
70 per cent in common stock of Federal company; such acquisition of new stock is to
be effected by a deposit of the constituent shares with, and the making of the cash
payment either to, the Colonial Trust Co. of New York or to the Old Colony Trust Co.,
Boston (as each depositor shall elect) in exchange for transferable receipts upon the
surrender whereof shares of the new company are to be delivered so soon as the same
are ready.
It is understood that until the consummation of the transaction intended and indi-
cated under article 1 hereof, aU the deposits of shares and all payments in connection
therewith under this article 2 shall be subject to the control of J. P. Morgan & Co.
III. Messrs. J. P. Morgan & Co., with the approval of Roswell P. Flower and of
Robert Bacon, or of either of them, may pay any and all expenses, directly or indirectly,
connected with or precedent to the organization of the Steel company; and in case
of any such payments they shall be entitled to deduct the amount thereof from the
cash payable to the Steel company under this contract.
IV. Messrs. J. P. Morgan & Co. shall be liable only ratably with other syndicate
members according to the amount of their several subscriptions. A list of such mem-
bers showing the amount of their several subscriptions shall be furnished to the Federal
Steel Co., and it may and shall look to such-syndicate members ratably to the extent
of the several subscriptions.
This agreement and any agreement in pursuance thereof are and shall be strictly
inter parties, and no stocldiolder of the Minnesota company, the Illinois company, or
Elgin company shall be deemed to have any rights thereunder as to any and all such
4196 UNITED STATES STEEL, COEJPOKATION.
Btockholders any rights shall be only those set forth in circulars to be issued inviting
deposits.
In witness whereof these presents have been duly executed by the parties hereto
the day and year first above written.
[seal.] Federal Steel Co.,
By Benjamin Van Dyke,
President.
Attest:
Charles MacVeagh,
Secretary.
[seal.] J. P. Morgan & Co.,
Acting in Behalf of a Syndicate.
September 9, 1898.
Directors' first meeting.
Present: Charles C. Cluff, Charles MacVeagh, and Benjamin C.
Van Dyke.
The president then brought to the attention of the board the reso-
lution of the incorporators concerning the proposed contract with
Messrs. J. P. Morgan & Co., of which a copy is set forth in the miautes
of the meeting of the incorporators, and made to the board a very full
statement concerning the proposed transaction. The president
stated that the principal corporate purposes of the Federal Steel Co.
being the manufacturmg and marketing of steel, it is essential that a
corporation as important and large as this shall establish a compre-
hensive installation or plant, adequate for the production, sale, and
distribution of steel and other commodities to be produced by this
company upon the most extensive basis, and that m this view it is
obvious that no better beginning can be made than by the acquisition
of the property either by stock ownership or otherwise, of the Mirine-
Bota Iron Co., the Illinois Steel Co., the Elgin, Joliet & Eastern Railway
Co., and, if practicable, of a controlhng interest in the manufacturing
property of the Lorain Steel Co., of Ohio, and the Johnson company,
of Pennsylvania; that with a view to the establishment of the organi-
zation of this company and its acquisition of such other corporations
and other properties, very careful and extended investigation has
been made during a period of many months by persons fully com-
petent to ascertain and report the character and values of the proper-
ties of these several corporations. That it appears that during the
last year of operations these several corporations, though operating
separately and without the benefit likely to result from the consoli-
dation of the several properties and mutual cooperation in their
development had made net earnings which in the aggregate amount to
about $5,000,000, a profit which in the future must largely be increased
hj the advantages of a single management and the combined oper-
ation of the properties; but that upon the basis of the existing earn-
ings these properties are fairly worth $100,000,000, and that in his
opinion and judgment and ia the opinion and judgment of competent
business men and manufacturers with whom fuU conferences had been
had, the property to be acquired under the proposed contract with
Messrs. J. P. Morgan & Co. and subject to diminution of property
and payment as in said contract provided, is and will be worth to the
Federal Steel Co. for its corporate purposes more than the sum of
$100,000,000.
Each and every of the other directors of the company stated that
he also had informed himself upon the matters embraced in the state-
ment of the president and that ne entirely concurred in such statement.
UNITED STATES STEEL OORPOEATION. 4197
Thereupon, on motion and by the affirmative vote of all present, it
was resolved that the statement of the president concerning the pro-
posed contract with Messrs. J. P. Morgan & Co. be spread upon the
minutes of this meeting.
Upon motion, and by the affirmative vote of all present, it was
resolved that for the reasons among others stated by the president of
the Federal Steel Co. at the first meeting of the board of directors,
held September 9, 1898, and spread upon the minutes of that meet-
ing, the board of directors of said company have adjudged and deter-
mined, and hereby do declare it to be the judgment and determination
of the said board of directors and of each and every member thereof,
that the property and stock to be acquired by the Federal Steel Co.
under and in pursuance of a contract proposed to be made with Messrs.
J. P. Morgan & Co. in behaK of a syndicate (of which contract a copy
is prefiLxed to the minutes of this meeting) is and wUl be to the Federal
Steel Co. for its corporate purposes of the full par value of all the
stock to be issued tnerefor under and in pursuance of the terms of
said contract to an aggregate amount not exceeding $100,000,000,
subject to the deductions from property and payments as provided
in said contract ; and it is the judgment and determination of the said
board of directors, and each end every member thereof, that the cash
value of such property to the Federal Steel Co. and for its corporate
purposes is fully equal to the par value of the stock issued and to be
issued therefor under and in pursuance of the said contract.
Resolved, That for the purpose of acquiring the said property the
president and the secretary of this company be, and hereby they are,
authorized, in the name and behalf of this company and under its
corporate seal or otherwise, to make, execute, and deliver to and with
Messrs. J. P. Morgan & Co., acting in behalf of a syndicate, the con-
tract heretofore approved by the incorporators of the Federal Steel
Co. and now submitted to the board of directors of said company at
their jSrst meeting and appended to the minutes thereof.
October 11, 1898—11 a. m.
Directors second meeting.
Present: Cluff, MacVeagh, and Vandyke. (Pursuant to call of
president.)
The president then laid before the board a letter of this date which
he had just received from Messrs. J. P. Morgan & Co., and also drafts
of three letters in reply which seemed to him proper to be sent to
Messrs. J. P. Morgan & Co. Thereupon, by the affirmative vote of
all present it was resolved that in partial performance of the agree-
ment of September 9, 1898, this company hereby does accept from
Messrs. J. P. Morgan & Co. 180,916 shares of the stock of the Illinois
Steel Co., 158,896 shares of the stock of the Minnesota Iron Co.,
59,810 shares of the stock of the Elgin, Joliet & Eastern Eailway Co.,
and $9,250,000 in cash, and in consideration therefor that this com-
pany will upon demand issue to Messrs. J. P. Morgan & Co., in
certificates for such convenient amounts and in such names as they
may indicate, 459,110 shares of the preferred stock and 452,265
shares of the common stock of the Federal Steel Co.; and upon the
complete performance of said contract by Messrs. J. P. Morgan & Co.,
4198 UNITED STATES STEEL COKPOKATION.
of the further sum of $4,825,000 in cash, the Federal Steel Co. also
win issue to them or upon their order similar certificates for 46,250
shares of fully paid preferred stock and 2,000 shares o( fully paid
common stock of the Federal Steel Co., all as requested in the letter
of Messrs. J. P. Morgan & Co., dated October 11, 1898.
Resolved, That the president be, and hereby he is, authorized, ia the
name and behalf of this company and imder the corporate seal or
otherwise, to sign and deliver to Messrs. J. P. Morgan & Co. three
letters, bearing date this day, confirming the agreement in the fore-
going resolution, and also to lodge with Messrs. J. P. Morgan & Co.
the certificates of stock of the said three companies and this com-
pany's check for $9,250,000, to be held by Messrs. J. P. Morgan & Co.
lor their protection until the Federal Steel Co. shall have issued and
delivered to Messrs. J. P. Morgan & Co. certificates of this company
for 459,110 fuUy paid nonassessable shares of the preferred stock and
452,265 shares of the common stock in such convenient amounts and
in such names as may be indicated by Messrs. J. P. Morgan & Co., the
certificates for such stock not yet being ready for delivery.
Resolved, That the copies of the said four letters be annexed to the
minutes of this meeting.
Messrs. J. P. Morgan & Co. were ap;pointed fiscal agents of the
company.
Copy of letter of J. P. Morgan & Co., dated October 11, 1898:
To the Federal Steel Co., New Yorh.
Gentlemen: In partial performance of the agreement of September 9, 1898, be-
tween your company and ourselves, acting on behalf of a syndicate, we herewith
deliver to you certificates for 180,9l6 shares of the stock of the Illinois Steel Co.,
158,896 shares of the stock of the Minnesota Iron Co., and 59,810 shares of the stock
of the Elgin, Joliet & Eastern Railway Qo., and we pass to the credit of your com-
pany on our books the sum of $9,250,000 in cash. In consideration of the said delivery
and payment, please issue to us fully paid and nonassessable certificates of stock of
your company as follows, viz: 459,110 shares of preferred stock and 452,265 shares
of common stock, or in case you are unable to issue suitable certificates at the present,
owing to the nonreceipt of the necessary forms from the engraving 'company, please
undertake upon our demand to issue to us shares, the certificates therefor to be in
such convenient amounts and in such names as we may indicate.
It is further understood that, upon the payment by us on behalf of the syndicate of
the further sum of $4,825,000 in cash, you will also issue to us similar certificates for
46,250 shares fully paid preferred stock and 2,000 shares fully paid common stock of
your company.
Yours, truly, J. P. Moegan & Co.
Copy of letter to J. P. Morgan & Co., dated October 11, 1898:
Messrs. J. P. Morgan & Co.,
Syndicate Managers, New York.
Dear Sirs: In partial performance of the agreement of September 9, 1898, between
this company and you, acting in behalf of 9ie syndicate, you have delivered to us
to-day certificates for 180,916 shares of the capital stock of the Illinois Steel Co.,
158,896 shares of the capital stock of the Miimesota Iron Co., 59,810 shares of tiie cap-
ital stock of the Elgin, Joliet & Eastern Railway Co, and you have paid to us tiie sum
of $9,250,000. In consideration of said deliveries and payments we will issue to you
upon your demand fully paid nonassessable certificates of stock of this company as
follows: 459,110 shares of preferred stock, 452,265 shares of common stock, said
certificates to be in such convenient amounts and in such names as you may indicate.
Upon payment by you of the further sum of $4,825,000 in cash we also will issue to
you similar cerificates for 46,250 shares fully paid preferred stock and 2,000 shares fully
paid common stock of this company.
UNITED STATES STEEL CORPORATION. 4199
What already has been done, together with what herein is undertaken, will be a per-
formance of Sections I and II of said agreement of September 9, 1898.
Yours, truly.
Federal Steel Co.,
By Benjamin C. Van Dyke, President.
(Note. — If this letter is of any importance, the original had better
be examined, because there is so much erasure upon the page that
the copy might not be correctly transcribed.)
Letter of the Federal Steel Co. of October 11, 1898, transfers to
J. P. Morgan & Co. the various shares of stocks of the several com-
panies above named, to be held in escrow until the stock of the
Federal Steel Co. is issued.
Copy of letter to J. P. Morgan & Co., dated October 11, 1898:
Messrs. J. P. Morgan & Co.,
New York City, N. Y.
Dear Sir: Referring to the contract of September 9 between this company and your-
selves, acting on behalf of a syndicate, and to the delivery of shares of the Minnesota
Iron Co., the Illinois Steel Co., and the Elgin, Joliet & Eastern Railway Co., which
you have this day made to this company, we hereby confirm our understanding, viz:
That in exchange for any and all additional shares of such companies which you may
deliver to us now, on or before December 15, 1898, from time to time, upon every such
delivery we will issue to you additional shares of the preferred stock of the Federal
Steel Co. at the rates of exchange specified in Article I (b) of said agreement, viz:
1.355 shares of preferred stock of the Federal Steel Co. for each share of the Minnesota
Iron Co., 1 share of Federal Steel Co. preferred stock for each shar« of the Illinois Steel
Co., 0.875 of one share of Federal Steel Co. preferred stock for each share of the Elgin,
Joilet & Eastern Railway Co.
Yours, truly, Federal Steel Co.,
By Benjamin C. Van Dyke, President.
October 11, 1898—1.30 p. m.
Directors' third meeting.
Present : Van Dyke, Cluff , and MacVeagh.
The president reported that in pursuance of the request con-
tained m a letter received since the last meeting of the board from
Messrs. J. P. Morgan & Co. out of the 459,110 shares of preferred
stock to be issued to Messrs. J. P. Morgon & Co., or as they might
indicate, certificates for three shares of preferred stock to each of the
following gentlemen, viz: J. P. Morgan, Kobert Bacon, Marshall
Field, Norman B. Eeam, H. H. Eogers, E. H. Gary, Nathaniel
Thayer, H. H. Porter, R. P. Flower, D. O. MiUs, C. C. Cuyler, and
Samuel Mather.
The number of directors was increased to 15, in accordance with
the charter and the by-laws, and the following persons were elected
directors: J. P. Morgan, Robert Bacon, Marshall Field, Norman B.
Ream, H. H. Rogers, E. H. Gary, Nathaniel Thayer, H. H. Porter,
R. P. Flower, D. O. Mills, C. C. Cuyler, and Samuel Mather.
Messrs. Bacon, Gary, Thayer, Porter, and Flower appeared and
entered upon their duties as directors.
Richard Trimble was elected treasurer in place of Cluff, resigned.
Judge E. H. Gary was elected president in place of Van Dyke,
resigned.
October 12, 1898.
Directors' meeting.
Present: Gary, Bacon, Thayer, Porter, Flower, Van Dyke, Cluff,
and MacVeagh.
The secretary read the minutes of the first three meetings.
4200 UNITED STATES STEEL, COEPOKATION.
The executive committee was elected, consisting of H. H. Porter,
H. H. Rogers, Nathaniel Thayer, E. H. Gary, and Charles MacVeagh.
H. H. Porter was elected chairman of the board of directors.
Resolved, That the subject matter of the purchase of the property
or stock of the Lorain Steel Co. or of the Johnson Co. of Pennsyl-
vania, or of the Johnson Co. of Ohio, or any part thereof, and all
matters relating to the contract or option between A. J. Moxham
and others of the one part, and H. H. Porter and E. H. Gary, of
the other part, be and hereby the same are referred to H. H. Porter
and E. H. Gary with fuU power and discretion to take such action
in behalf of the Federal Steel Co. as to them may seem expedient
and wise.
Richard Trimble was elected secretary in place of MacVeagh,
resigned. Charles MacVeagh was elected first vice-president.
November 7, 1898.
Directors' meeting.
Drawing of two checks to J. P. Morgan & Co. for $4,200,000 and
$625,000 approved.
The president then submitted to the board two letters under date
of October 19, 1898, which had been received by this company from
Messrs. J. P. Morgan & Co., and also copies of two letters in reply
which had been sent by this -company to Messrs. J. P. Morgan & Uo.
under date of October 19, 1898.
Upon motion duly seconded it was unanimously resolved that this
company having received from Messrs. J. P. Morgan & Co. additional
shares of the capital stock of the Minnesota Iron Co., Illinois Steel Co.,
and Elgin, Joliet & Eastern Railway Co., as follows: 2,442 shares of
the stock of the Illinois Steel Co.; 3,175 shares of the stock of the
Minnesota Iron Co.; 118 shares of the stock of the Elgin, Joliet &
Eastern Railway Co., and having received from Messrs. J. P. Morgan &
Co. the sum of $4,825,000 in cash, tliis company hereby does accept
the said shares of stock and the said sum of $4,825,000 and in consid-
eration therefor that this company will upon demand issue to Messrs.
J. P. Morgan & Co., in certificates for such convenient amounts and
in such names as they may indicate 53,097f shares of its preferred
stock and 2,000 shares of its common stock.
Resolved, That the signing in the name and behalf of this company
and dehvering to Messrs. J. P. Morgan & Co. the two letters bearing
date October 19, 1898, heretofore submitted to this meeting, and
lodging with J. P. Morgan & Co. the certificates of stock and this
company's check for $4,200,000, and the note and bonds of the Lorain
Steel Co. under the terms and conditions set forth in said letters is in
all respects hereby confirmed and approved.
Resolved, That copies of the four letters above referred to be annexed
to the minutes of this meeting.
The president then submitted to the board a letter under date of
October 28, 1898, which had been received by this company from
Messrs. J. P. Morgan & Co., and also copies of two letter in reply,
which had been sent to Messrs. J. P. Morgan & Co. under date of
October 28, 1898. Upon motion duly seconded it was unanimously
resolved that this company having received from Messrs. J. P. Mor-
gan & Co. additional shares of the capital stock of the Minnesota Iron
Co., Illinois Steel Co., and the Elgin, Joliet & Eastern Railway Co., as
UNITED STATES STEEL OOEPOEATION. 4201
follows, namely: 725 shares of Illinois Steel Co.'s stock; 1,076 shares
of Minnesota Iron Co. stock; 72 shares of Elgin, Joliet & Eastern Kail-
way Co. stock, that this company does hereby accept the said shares
of stock and in consideration therefor that this company will upon
demand issue to Messrs. J. P. Morgan & Co., in certificates for such
convenient amounts and in such names as they may indicate 2,245.81
shares of the preferred stock of this company.
Resolved, That the signing in the name and behalf of this company
and delivering to Messrs. J. P. Morgan & Co. the two letters bearing
date October 28, 1898, heretofore submitted to this meeting, and
the loding with Messrs. J. P. Morgan & Co. the certificates of stock
of the Illinois Steel Co., the Minnesota Iron Co., and the Elgin,
Joliet & Eastern Railway Co., under the terms and conditions set
forth in one of said letters, is in all respects hereby confirmed and
approved.
Resolved, That copies of the ihree letters above referred to be
annexed to the minutes of this meeting.
The following resolutions were unanunously adopted :
Resolved, That the subject of closing the purchase of the stock of
the Lorain Steel Co., of Ohio, and the Johnson Co., of Pennsylvania,
together with the stock of the auxiliary companies, and the execution
and delivery of the necessary checks and the execution and delivery
of stock of the Federal Steel Co., for a one-third interest, all pursuant
to the general plan embodied in the optional contract between A. J.
Moxhana for himself and associates of the one part and H. H. Porter
and E. H. Gary and their associates of the other part, be, and the
same hereby are, referred to the president and treasurer of this com-
pany with fuU power to act.
Resolved further, That the action of the president, first vice presi-
dent, and treasurer, heretofore taken in the execution and delivery
of checks aggregating $2,625,000 on account of the purchase of the
Lorain Steel Co.'stock and the Johnson Co., of Pennsylvania, stock,
and the other acts in relation thereto be and the same hereby are
approved.
December 20, 1898.
Directors' meeting.
On motion the action of the president of this company making
application to the committee on stock list. New York Stock Exchange,
for the listing of the stock of this company was by unanimous 'Vote
approved.
A copy of the application and the action of the committee are
hereby recorded as follows:
[No. A 2109. Committee on stock list, New York Stock Excgange.[
Federal Steel Co.,
New York, November 4, 1898.
The Federal Steel Co. hereby makes application for the listing of 532,610 shares of
its preferred stock and 464,843 shares of its common stock.
The Federal Steel Co. is a corporation of the State of New Jersey, incorporated on
September 9, 1898. The company, by its articles of incorporation, is authorized
(among other things) to engage in miaing of all kinds; manufacturing of all kinds;
transportation of goods, merchandise, or passengers upon land or water; building
houses, structures, vessels, ships, boafs,_ railroads, engines, cars, or other equipment,
wharves or docks; constructing, maintaining, and operating railroads (other than rail-
roads within the State of New Jersey), steamship Imes, vessel lines, or other lines of
transportation; the purchase, improvement, or sale of lands.
4202 UNITED STATES STEEL COEPOEATION.
The articles of incorporation further provide that "the board of directors shall have
power without the assent or vote of the stockholders to make, alter, amend, and rescind
the by-laws of the corporation, to fix the amount to be reserved as working capital, to
authorize and to cause to be executed mortgages and liens upon real and personal
property of the corporation; and from time to time to sell, assign, transfer, or otherwise
dispose of any or all of the property of the corporation; but no such sale of all of the
property shall be made except pm^uant to the vote of at least two-thirds of the board
of directors."
We hand you herewith a copy of its certificate of its incorporation.
The authorized capital stock of said company is $200,000,000, viz, $100,000,000
preferred stock and $100,000,000 common stock, being 100,000,000 of preferred stock
and 1,000,000 shares of common stock of $100 par value each. Tlxe distinction between
the two classes of stock is set forth iu its certificate of incorporation, as follows:
"The preferred stock shall be entitled out of any and all surplus net profits, when-
ever declared by the board of directors, to noncumulative dividends at the rate of,
but not exceeding, 6 per cent per annum, for the fiscal year beginning oh the 1st day
of January, 1899, and for each and every fiscal year thereafter, payable in preference
and priority to any payment of any dividend on the common stock for such fiscal yeat.
"In addition thereto, in the event of the dissolution of the company, the holders of
the preferred stock shall be entitled to receive the par value of their preferred shares
out of the surplus funds of the corporation before anything shall be paid therefrom
to the holders of the common stock.
' ' The common stock shall be subject to the prior rights of the holders of the preferred
stock as herein declared. If, after providing for the payment of full dividends for
any fiscal year on the preferred stock, there shall remain any surplus net profits of
such year, any and all such surplus net profits of such year and of any other fiscal year
for which full dividends shall have been paid on the preferred stock shall be applicable
to dividends on common stock, when and as from time to time the same shall be
declared by the board of directors; and out of any such surplus net profits after the
close of any fiscal year the board of directors may pay dividends upon the common
stock of the corporation for such fiscal year, but not until after the dividends upon
the preferred stock for such fiscal year shall have been actually paid or provided and
set apart."
Pursuant to an agreement with the syndicate hereinafter referred to, an offer was
made in its behalf through the Colonial Trust Co., of New York, and the old Colony
Trust Co., of Boston, to issue in exchange for shares of Minnesota Iron Co.'s stock,
Illinois Steel Co.'s stock, and Elgin, Joliet & Eastern Railway Co.'s stock, shares of
this company's stock on the following basis: Each existing share of Minnesota Iron
Co. (upon payment thereon of the sum of $27.10 in cash) to be entitled to 1.355 shares
in preferred stock of the Federal Steel Co. and 1.84 shares in common stock of the
Federal Steel Co.
Each existing share of IlHnois Steel Co. (upon payment thereon of the sum of $20
in cash) to be entitled to one share in prefei-red stock of Federal Steel Co. and eight-
tenths of one share in common stock of Federal Steel Co.
Each existing share of Elgin, JoUet & Eastern Railway Co. (upon payment thereon
of the sum of $17.50 in cash) to be entitled to seven-eighths of one share in preferred
stock of Federal Steel Co. and seven-tenths of one share in common stock of Federal
Steel Co.
The company has acquired from the syndicate and owns 163,147 shares out of a total
of 165,000 of the capital stock of the Minnesota Iron Co., 184,083 shares out of a total of
186,506.5 shares of the capital stock of the Illinois Steel Co., and 60,000 shares, being
the total of the capital stock of the Elgin, Joliet & Eastern Railway Co.
It has also received the sum of $14,075,000 in cash.
The company has also acquired and owns 30,000 shares preferred stock and 60,000
shares of common stock of Lorain Steel Co., being the entire capital stock of said com-
pany; also 30,000 shares of stock of the Johnson Co., being the entire capital stock of
said company.
In payment for the said shares of the above-named companies and for said cash this
company has issued, or is under obligation to issue, to a syndicate and otherwise,
527,676 shares of its preferred stock and 464,843 shares of its common stock; and in
addition thereto, as part of the purchase price of the Lorain and Johnson stocks and
for extensive additions to the Lorain property, now being constructed, the company
has agreed to pay out about $5,000,000 in cash.
After the acquisition of these properties and the completion of extensive improve-
ments m progress, the company will have upward of $9,000,000 in cash.
Witiiout creating any right in favor of outstanding stockholders of the Minnesota
Iron Co. or the lUinois Steel Co., it is willing at the present time to issue its preferred
stock for outstanding shares of said companies at the following rates: For each share
UNITED STATES STEEL OOEPOEATION. 4203
of Minnesota Iron Co., 1.355 shares in preferred stock; for each share of Illinois Steel
Co., one share in preferred stock.
If all of the few outstanding shares are thus acquired, it will be requisite to issue 4,934
shares additional preferred stock of the Federal Steel Co. This will make a total issue
of Federal Steel Co. stock as follows: 532,610 shares of preferred stock and 464,843
shares of common stock; all shares are of the par value of |100 each.
PROPERTIES ACQUIRED.
A. The property owned by the Minnesota Iron Co. may be briefly described as fol-
lows:
1. Thirty-nine thousand acres of land in fee and 3,320 acres lease, located in the
counties of Lake, St. Louis, and Itasca, in the State of Minnesota. In these lands
are developed the following iron mines: Minnesota mines near Fayal, near Tower on
the Vermilion Range; the Fayal, Auburn, Ganon, Norman, and Canton on the Me-
sabi Range; Chandler mine at Ely (controlled by the Minnesota Iron Co.).
2. Entire capital stock Duluth & Iron Range Railroad |3, 000, 000
Second mortgage bonds Duluth & Iron Range Railroad 3, 500, 000
Capital stock Minnesota Steamship Co 300, 000
First mortgage 7 per cent bonds Minnesota Steamship Co 1, 974, 000
Eleven-twentieths capital stock Minnesota Dock Co 11, 000
The railroad company has outstanding in addition to the bonds owned by the steel
company $6,732,000 &st mortgage 5 per cent bonds; $1,000,000 second mortgage 6
per cent bonds; $10,000,000 land grant 5 per cent bonds. Additional first mortgage
bonds can hereafter be issued only upon the acquisition or construction of additional
railway or double track or upon the purchase of equipment on the following basis:
For each mile of second or additional track completed (not however including
side tracks) $12,000 per mile. For the purchase of equipment (not however exceeding
the actual cost) per each mile of continuous railroad owned and operated $7,000 per
mile. Additional second mortgage bonds not exceeding $500,000 in amount may
be issued at any time for the general purposes of the company.
The Minnesota Steamship Co., of which the steel company owns all the bonds and
stock, has a fleet on the Great Lakes consisting of nine steel steamships and seven
steel tow barges, with a tonnage capacity of about 1,250,000 tons of ore per annum.
The balance sheet (condensed) of the Minnesota Iron Co. on June 30, 1898, was as
follows:
ASSETS.
Property accounts:
Real estate $6, 569, 588. 80
Plant at Soudan, Minn 343, 251. 87
Office furniture and fixtures and private car 7, 675. 00
6, 920, 515. 67
Less replacement fund 10, 767. 30
$6, 909, 748. 37
Supplies 68,596.01
Investments:
Duluth & Iron Range R. R. stock, entire author-
ized issue 3, 000, 000. 00
Chicago & Minnesota Ore Co.'s stock, entire au-
thorized issue 2, 500, 000. 00
Chicago & Minnesota Ore Co. advances 2, 229, 237; 18
Genoa Iron Co.'s stock, entire authorized issue 140, 000. 00
Minnesota Steamship Co.'s stock, entire authorized
issue 300, 000. 00
Minnesota Steamship Co. 7 per cent bonds, entire
authorized issue 1, 974, 000. 00
Minnesota Dock Co.'s stock, entire authorized issue. 11, 000. 00
Duluth, Missabe & Northern securities 294, 736. 81
10, 448, 973. 99
Quick assets:
Cash and cash items 555, 495. 59
Bills receivable 133,882.35
Duluth & Iron Range R. R. second-mortgage bonds . 3, 500, 000. 00
Accrued interest on bonds 123, 525. 00
Sundry debtors 9,227.14
4,322,130.08
31572— No. 53, pt. 2—12 30
4204 UKITED STATES STEEL COEPOBATION.
Quick assets — Continued.
^'""^ir^e 106,757 $151,861.83
Intransit 27,625 62,402.77
At lower lake ports 218,708 557,110.29
353, 090 771, 374. 89
Less customers' accounts credits 206, 763. 29
564, 611. 60
Customers' accounts debits 51,706.76 „,„„,„„„
$oib, olo. 00
22,365,766.81
LIABILITIES.
Capital Stock ....$16,500,000.00
Floating debt:
BillBpayable '^^M.OSe.ll
Approved vouchers 43, 808. 40
Other audited accoimts 84, 575. 22
Tonnage liabilities 12, 475. 54
Accrued taxes 2,358.11
408, 203. 38
Income accounts:
Profit on ore shipments delivered 7, 846. 99
Profit on investments 109,111.14
Interest accounts 171, 879. 77
Rents and miscellaneous 468. 00
273, 611. 92
Less general expenses and explorations 18, 402. 31
^ 255,209.61
Surplus:
I Profit and loss, 1887-1896 6,095,790.82
Profit and loss, 1897 2,594,063.00
8, 689, 853. 82
3, 487, 500. 00
5,202,353.82
22,365,766.81
B. The property owned by the Illinois Steel Co. may be briefly described as
foUows:
NOBTH WORKS AT SOUTH CHICAGO.
Contains 20.727 acres mill property and 736 acres divided into lots, in most case)
with tenement houses thereon Works consist of 2 blast furnaces; 1 furnace in blast,
other not in shape for operation; 1 structural-steel fitting shop in operation under
lease to the Universal Construction Co.; 1 cement mill in operation; ore docks; old
rolling mill and steel works in course of demolition.
SOUTH WORKS AT SOUTH CHICAGO.
Contains 258.246 acres mill property, 20 acres detached in 1 piece and 1.96 acres
divided into lots, with tenement houses thereon; total, 280.206 acres. Works consist
of 8 blast furnaces in operation; 1 steel mill in operation; 1 roll mill in operation;!
open-hearth plant in operation; 1 pkte mill in operation; 2 ore docks and hoists in
operation; 1 mineral- wool plant in operation; 1 briquette-making plant in operation;
accessory shops, offices, laboratories, etc.; 1 slabbing mill in course of construction.
UNION WORKS AT CHIOAOO.
Contains 54.883 acres mill property. Works consist of 2 blast furnaces not in opera-
tion; 1 steel mill partly dismantled; 1 rail or billet mill partly dismantled; ore docks;
accessory shops.
UNITED STATES STEEL OOKPOBATION. 4205
JOLIET WORKS AT JOLIBT,
Contains 134,81 acres mill property; 51.26 acres pasture lands; 2.65 acres in lots,
with tenements thereon. Total, 188.72 acres. Works consist of 3 blast, furnaces in
operation; 1 steel mill in operation; 1 billet mill in operation^ 3 rod mills in operation;
1 merchant mill in operation; spike and bolt factory in operation; accessory shops,
offices, etc.
MILWAUKEE WORKS AT MILWAUKEE.
Contains 144.98 acres mill property, 17 acres known as Jones Island (title to part in
litigation, but favorable decision obtained in lower court); 21.923 acres vacant prop-
erty in 1 piece and 5.901 acres in lots mostly covered by tenement houses. Total,
189.804 acres. Works consist of 2 blast furnaces in operation; 1 merchant mill in
operation; 1 rail mill in operation; ore docks; accessory shops.
RAILROAD- STOCKS AND BONDS.
(Being in instance the entire authorized issue.)
Stock of the Chicago, Lake Shore. & Eastern R. R. Co. and subsidiary com-
panies (being all the capital stock of said railroad, except $50,000, held
in the treasury of the railroad company) $600, 000
First-mortgage 6 per cent bonds, due July 1, 1914:
Chicago & Kenosha Ry. Co $120,000
Chicago & Southeastern Ry. Co 270,000
Joliet & Blue Island Ry. Co 200,000
Milwaukee, Bay View & Chicago Ry . Co 130, 000
720, 000
First-mortgage 5 per cent gold bonds, due Mar. 1, 1917, Chicago, Lake
Shore & Eastern R. R. Co 1,200,000
Equipment, gold sinking-fund bonds, due July 1, 1917, 5 per cent Chi-
cago, Lake Shore & Eastern Ry . Co 1, 310, 000
Total stocks and bonds of railroad companies owned by Illinois
Steel Co 3, 830, 000
The balance sheet (condensed) of the Illinois Steel Co. on June 30, 1898, was as
follows:
ASSETS.
Plants with the real estate equipment and improvements $20, 405, 468. 32
Investment in railroad stocks and bonds 3, 830, 000. 00
Investment in coke property 2, 781, 000. 00
Other investments 410, 649. 83
27, 427, 118. 15
Quick assets:
Inventory of material and supplies $3, 092, 332. 66
Cash 438,786.33
Bills receivable 365, 056. 43
Accounts receivable 4, 243, 048. 19
8, 138, 223. 61
35, 565, 341. 76
LIABILITIES.
Capital stock outstanding 18, 650, 635. 00
5 per cent convertible debenture bonds due in 1910 (entire authorized
issue) 6,200,000.00
5 per cent nonconvertible debenture bonds due in 1913 (entire author-
ized issue) 7,000,000.00
Noninterest-bearing dividend script outstanding, due in 1913 85, 142. 67
Quick liabilities:
Bills payable $1, 345, 000. 00
Accounts payable 1, 408, 285. 08
2, 753, 285. 08
Reserve fund for replacements, etc 211,371,62
Profit and loss 664,907.39
35, 565, 341. 76
4206 UNITED STATES STEEL COEPOBATION.
c. The property owned by the Elign, Joliet & Eastern Railway Co. may be briefly
described as follows: 180.38 miles of main line and branches; 95.04 miles of spurs and
yard and owned side tracks; 16.35 miles of trackage rights; 50 locomotives; 2,029
freight cars, etc., 3 passenger cars.
All subject to a mortgage of 810,000,000, under which $7,417,000 bonds are now out-
standing. The remainder can be issued only to acquire additional property.
The Eligin, Joliet & Eastern Railway, or "Chicago Outer Belt Line" extends from
Waukegan, 111. (about 35 miles north of Chicago), southwesterly to Spaulding (near
Elgin), thence southerly to Joliet and from there easterly to Porter, Ind., thus con-
necting with every raUroad reaching Chicago, and an average distance of say 30 miJes
outside of that city. It also has branches to Aurora, 111., and to the Wilmington coal
fields, also to Whiting (Standard Oil Works) and South Chicago, where it owns exten-
sive wharves and other terminal property.
The Elgin, Joliet & Eastern Railway Co. balance sheet (condensed) on June 30,
1898, was as follows:
ASSETS.
Cost of road and equipment $13, 351, 526. 65
Construction and improvement since July, 1897 $23, 386. 57
South Chicago extension since July, 1897 '. 17, 651. 59
New equipment since September, 1897 17, 008. 79
62, 046. 95
Central Trust Co. (proceeds of land sale deposit) 10, 000. GO
New box cars — special account 36, 846. 08
Material and supplies on hand 63, 412. 47
Cash on hand 293, 633. 29
Cash in transit 59, 702. 34
Due from agents and conductors 53, 019. 03
Due from other railway companies 25, 651. 93
Due from individuals and companies 32, 890. 01
Unadjusted freight claims, etc 18, 673. 33
Bonds in treasury 28, 000. 00
14, 035, 402. 08
LIABILITIES.
Capital stock $6, 000, 000. 00
First mortgage bonds 7, 417, 000. 00
Total capital and mortgage liabilities 13, 417, 000. 00
Balance due for alterations of gondolas to box cars 36, 846. 08
Bills payable 2, OOO 00
Due other railway companies 243, 651. 77
Due individuals and companies 1, 044. 30
Payrolls (for June) 39, 004. 07
Unclaimed wages 1, 893. 78
Paymaster's account ' 401. 11
Vouchers audited 67, 979. 15
Drafts in transit 15 905. 46
Accounts payable account ^Miiting extension 3' 800. 00
Reserve funds for claims, overcharges, and accrued operating expenses 24, 801. 19
Taxes accrued, not due ^ 14 971. 16
Interest on funded debt accrued, not due 62| 456. 62
Profit and loss IO3, 647. 39
14, 035, 402. 08
p. The property owned by the Lorain Steel Co. maybe briefly described as foUowa'
Loram plant at Lorain, Ohio (unencumbered), 525 acres of land on Black River
outlet to Lake Erie, two new blast furnaces, two blooming mills, one rail mill, 240
by-products coke ovens under construction, all the stock of the Terminal Railroad
Co., fully equipped, necessary office buildings, laboratory, etc., ore docks.
E . The property owned by the Johnson Co. of Pennsylvania may be briefly described
as follows:
Plant at Johnstown, Pa. Foundries and machine shops, built for manufacture of
switches, electric motors and appliajices for street railroads, with necessary land, offices,
laboratory, etc., all the stock of the Johnstown & Stony Creek Railroad Co. fully
equipped, the above subject to bonds aggregating $1,600,000 , being the total authorized
issue.
UNITED STATES STEEL OOEPOBATION. 4207
EARNINGS.
The net earnings of the Illinois Steel Co., Minnesota Iron Co., Elgin, Joliet & Eastern
Railway Co., Lorain Steel Co., and Johnson Co. of Pennsylvania for nine months ending
September 30, 1898, after paying all fixed charges, have been not leas than $3,000,000,
and the net earnings for the year ending December 31, 1898, after payiag all fixed
charges, are estimated at a minimum of $4,000,000.
The fixed charges above referred to consist of —
One year's interest, 5 per cent, on $13,200,000 Illinois Steel Co. deben-
tures $660, 000. GO
One year's interest, 5 per cent, on $7,417,000 Elgin, Joliet & Eastern
Ry. Co. bonds 370,800.00
One year's interest, 6 per cent, on $1,600,000 on Johnson Co. bonds 96, 000. 00;
And in respect of the Duluth & Iron Range Railway Co. —
• One year's interest at 5 per cent on $6,732,000 first mortgage 336, 600. Oa
One year's interest, 6 per cent, on $1,000,000 second mortgage 60, 000. 00
One year 's interest, 5 per cent, on $10,000 land-grant mortgage 500. 00
1, 523, 900. 00
The union of interest of the five companies ia expected to materially increase their
earnings.
(There is included in the application a statement of the principal ofiices and agents
of the corporations; a statement of the directors and officers of the company.)
Very, respectfully.
Federal Steel Co.,
By E. H. Gaby,
President.
This company recommends that the above-named $52,767,000 preferred stock and
$46,484,300 common stock be admitted to the list when the engraved certificates
therefor shall be ready for distribution. Also that the committee be authorized to
add to the list additional amounts of preferred stock, but not exceeding $493,400
thereof, as the same may be issued in exchange for the shares of the above-named con-
stituent companies.
W. H. Granberey, Chairman.
George W. Ely, Secretary.
Adopted by the governing committee, November 9, 1898.
Resolution to issue to A. J. Moxham and associates or nominees
13,222 shares of preferred stock and 10,548 shares of common stock
of the Federal Steel Co. in exchange for 8,600 shares of preferred
stock and 17,200 shares of the common stock of the Lorain Steel Co.,
and $264,454.70, and that the whole subject matter be, and the same
hereby is, referred to the president with power.
Amendment to the by-laws, preventing the sale of stock of the
Minnesota Iron Co., Illinois Steel Co., Lorain Steel Co., Elgin, Joliet
& Eastern Eailway Co., except after advertisement in the news-
papers, etc.
Febeuabt 13, 1900.
Directors' meeting.
The president read to the meeting a statement of profits of the year
1899, also for that part of the year 1898 which accrued subsequent to
the time the Federal Steel Co. acquired the ownership of the stock of
constituent companies.
April 2, 1900.
Directors' meeting.
J. P. Morgan and Robert Bacon reelected directors.
4208 united states steel, coepoeation.
Apkil 19, 1900.
Directors' meeting.
Resolved, That a committee of three be appointed by the chair to
have charge of the subject of the business differences between the
constituent companies of the Federal Steel Co. and the American
Steel & Wire Co., with authority to appear before the directors of
that company and to report to an adjourned meeting of this board,
to be held on Friday, the 20th day of AprU, 1900, at 4.30 o'clock p. m.
The chair thereupon appointed H. H. Rogers, E. H. Gary, and Samuel
Spencer as the committee, and as substitutes Messrs. NormanB. Ream
and Robert Bacon.
April 20, 1900.
Directors' meeting.
The committee appointed at the previous meeting of the board
reported through its chairman that pursuant to a resolution adopted
by the board of directors at its meeting on AprU 19, 1900, the com-
mittee had had an interview with the board of directors of the Ameri-
can Steel & Wire Co. concerning the differences existing between the
American Steel & Wire Co. and the constituent companies of the
Federal Steel Co., with the result as shown by the letter dated April
20, 1900, from the American Steel & Wire Co. to the Illinois Steel
Co., which letter was read by the chairman of the committee.
Upon motion duly seconded, it was unanimously resolved that the
report of the committee be accepted and approved and that the com-
mittee be discharged with the tnanks of the board. The committee
also stated that it was verbally agreed between the board of directors
of the American Steel & Wire Co. and the chairman of the committee
that the same arrangement stated in the letter to the Illinois Steel Co.
should apply to the contracts and agreements existing between the
American Steel & Wire Co. and the Lorain Steel Co.
September 18, 1900.
Directors' meeting.
A full and complete statement was submitted to the board of the
improvements, betterments, operations, and profits of each of the
various companies whose stock is owned by tnis company, together
with a report on the improvements and betterments for the future
necessary to give them facUities for producing finished steel, and it
was resolved that the executive committee formulate a plan to pro-
vide money for said improvements.
November 9, 1900.
Directors' meeting.
The financial plan suggested in pursuance of the resolution of Sep-
tember 18, 1900, was that the constituent companies issue debenture
bonds not secured by mortgage and guaranteed by the Federal Steel
Co. at 5 per cent, payable within 20 years, with the right to call at
any time upon payment of 105.
December 23, 1909.
Directors' meeting.
The president submitted a form of agreement dated December 1,
1909, between the Chicago, Lake Shore & Eastern Railway Co., of the
first part, and the Federal Steel Co. and E. H. Gary and Richard
Trimble, of the second part, covering the sale by the Federal Steel
Co. of $4,000,000 par value of the capital stock of the Elgin, Joliet &
UNITED STATES STEEL. COEPOEATION. 4209
Eastern Railway Co., which had been executed by the officers of the
Federal Steel Co.
Thereupon, on motion duly seconded and by the unanimous vote
of all present, it was resolved that the execution of the said agreement
by the officers of this company be, and the same is hereby, approved,
ratified, and adopted.
July 29, 1910.
Directors' meeting.
J. A. Farrell and Thomas Murray were appointed proxies to vote
at special meeting of the stockholders of the United States Steel
Products Export Co. on behalf of the Federal Steel Co.
The last meeting extracted was that of June 20, 1911.
ILLINOIS STEEL CO.
May 2, 1889.
Articles of consolidation, dated May 2, 1889, were entered into
between the North Chicago Kolling Mill Co., owning the Chicago
works, the South Chicago works, and the Milwaukee works, and the
Union Steel Co. (of Illinois), owning the works on the South Branch
of the Chicago Eiver, under the name of the lUinois Steel Co., with
a capital stock of $25,000,000, of which $9,510,000 shall represent
the capital stock of the Chicago Rolling Mill Co., and $3,486,000 shall
represent the capital stock of the Union Steel Co. For each share
of stock in the Chicago RoUing Mill Co. was issued one and fifty-ekht
and one-half one-hundredths shares of stock of the Illinois Steel Co.;
and for each share of preferred stock in the Union Steel Co. was issued
one and five one-hundredths shares of the capital stock of the Illinois
Steel Co.", and for each share of common stock of the Union Steel Co.
was issued twenty-one one-hundredths of one share of stock of the
Illinois Steel Co.
The board of directors were Orrin W. Potter, Nathaniel Thayer,
William J. Rotch, Francis Bartlett, Edward C. Potter, Richard A.
Hannah, WilHam H. Hannah, Samuel G. Cooper, H. H. Porter, Jay
C. Morse, and Marshall Field.
The charter. Article VII, section 5, provides that the board of
directors may appoint an executive committee.
The by-laws provide (Article IX, executive committee) :
1. The executive committee shall possess and exercise the powers of the board of
directors when that board is not in session.
Sec. 2. The executive committee shall cause to be kept a record of its proceedings,
which shall be read at all meetings of the directors for their information and shall at all
times be subject to the inspection of the board of directors.
Sec. 4. Contracts or agreements authorized by the executive committee shall be
executed on behalf of the company by the chairman or by such other person as he may
designate.
Mat 4, 1889.
Directors' meeting.
The chairman and president were authorized to make a proposition
for the purchase of tne Johet Steel Co., except the franchise of the
Joliet Steel Co. to be a corporation; and except the interest of the
Joliet Steel Co. in the Bessemer Steel Co. (Ltd.), and in the Fox
Consolidated Pressed Steel Co.; also to purchase the interest of the
Joliet Steel Co. in the first-mortgage bonds and capital stock of the
Southwest Coal & Coke Co.; also large number of freight cars; and
nine bonds of the Ohio VaUey Railroad Co.; also interest of the Joliet
Steel Co. in coal lands in Virginia, in consideration of $4,626,000 of
the stock of the Illinois Steel Co. Letter to Joliet Steel Co. to the
above effect.
A letter from Johet Steel Co., dated Chicago, May 4, 1889, accepting
the proposition above set forth.
Resignations of the foUomng directors: W. H. Hannah, R. C.
Hannah, J. C. Morse, Samuel G. Cooper. The following gentlemen
4210
UNITED STATES STEEL OORPOEATION. 4211
were elected directors: John Crerar, A. J. Leith (also elected presi-
dent), William R. Stirling.
EXECUTIVE COMMITTEE.
'' 0. W. Potter, Alexander J. Leith, J&j C. Morse, W. R. Stirling,
and E. C. Potter were elected the executive committee.
October 2, 1SS9.
Directors' meeting.
EXECUTIVE COMMITTEE MINUTES APPROVED.
The secretary then read the records of meetings of the executive
committee up to and including page 57 in the record book of that
committee for the information of the board.
October 3, 1889.
Directors' meeting.
Increase of Connellsville coke supply referred to executive commit-
tee.
The chairman and Mr. Stirling briefly outlined to the meeting the
proposition of the trustees for the proposed Federal Steel Co., looking
to the control of certain branches of wire and wire-rod business.
November 14, 1889.
Directors' meeting.
Bond issue of 16,200,000 ($1,000 each) to be issued in addition to
$1,200,000 of bonds of the Union Steel Co., which is the only existing
•lien upon the property of the company.
Opinions of Attorneys Prussing, Hutchins, and Goodrich, of Chicago,
concurred in by Messrs. Williams, Holt, and Wheeler, and Gardner,
McFaddon & Gardner, to the effect that the title to real estate pur-
chased from the Joliet Steel Co. was not perfect of record in the
Joliet Steel Co., but that on account of lapse of time, payment of
taxes, possession, and all the evidence in the case that there is no
reasonable probability that the title acquired by the Illinois Steel
Co. could be disturbed.
(Note. — ^The name of A. J. Leith, the president, was changed to
A. J. Forbes.— Leith.)
January 29, 1890.
Directors' meeting.
Resolved, That the interestof the Joliet Steel Co. in the Bessemer Steel Co. (Ltd.)
should be allowed to remain undisturbed.
February 12, 1890.
Stockholders' > meeting.
Resolved, That the stockholders hereby approve, ratify, and adopt all the proceed-
ings of the board of directors, the executive committee, and the officers and agents of
the company as the same are shown or appear on the record books of the company now
laid on the table.
E. C. and O. W. Potter resigned, apd H. S. Smith and Norman
Williams were elected to the executive committee.
4212 united states steel. cobpobation.
May 7, 1890.
Directors' meeting.
INTERSTATE TRANSIT CO.
Whereas the Interstate Transit Co. proposes to execute 60 promis-
sory notes, aggregating $440,000, at 6 per cent, and whereas it also
proposes to execute to the Illinois Trust & Savings Bank, as trustee,
a mortgage or deed of trust conveying 1,194 box cars; and whereas
the Interstate Transit Co. desires to make an arrangement wth the
Ilhnois Steel Co. whereby in consideration of the grant by it to the
Ilhnois Steel Co., in preference to others, of the right to use said 1,194
cars in connection with the business of the lUinois Steel Co., so long
as and while said promissory notes remain unpaid, upon the condi-
tion that the Interstate Transit Co. may continue to collect from time
to time all sums earned by said cars as mileage or otherwise, that
then the Ilhnois Steel Co. will hereby agree in the event of the failure
of the Interstate Transit Co. at any time to pay the whole or any
part of said promissory notes according to the terms thereof or accord-
ing to the terms of said mortgage or deed of trust, to purchase from
the Interstate Transit Co., at a sum sufficient to pay the amount
then unpaid upon said promissory notes, the said 1,194 cars or
such as are at the time in existence and will pay said IlHnois Trust
& Savings Bank for the use of the holders of said notes the said sum
in consideration of the sale of said cars to the said steel company
by the said transit company.
February 18, 1891.
Stockholders' meeting.
Capital stock increased from $25,000,000 to $50,000,000.
May 25, 1891.
Directors' meeting.
Increase of capital stock.
February 7 1893.
Directors' meeting.
Issue of $7,000,000 nonconvertible debenture bonds dated April 1,
1893, payable 20 years from date, bearing interest at 5 per cent.
June 21, 1893.
freight rate on coke.
Directors' meeting.
Resolved, That this board of directors earnestly protests against the action of the rail-
road companies operating between the Connellsville district and Chicago in making
their tariff on coke to Chicago higher relatively than to other points, and it is the
judgment of this board that they should either increase their rates on finished iron and
steel coming into this company's market in competition with it, or else reduce the
present rates on coke to Chicago, so as to do justice to this company.
UNITED STATES BONDS.
Mr. A. J. Forbes-Leith made a report to the board in regard to
the action taken by him in New York recently in connection with
the sale or exchange of the six 4 per cent bonds owned by the com-
UNITED STATES STEEL, COEPOKATION. 4213
J any. He stated that a verbal arrangement had been made with
. P. Morgan & Co., by which the bonds were placed in their hands
to be sold at a price approximating 110 per cent flat, and with the
proceeds this company was to be prepared to purchase $500,000 or
$600,000 of the new 30-year 4 per cents to be issued by the Govern-
ment at the first price at which the sales would be made by the syn-
dicate purchasing same from the United States Treasury. This
price he estimated not to exceed 111.73, producing an equivalent
interest of 3| per cent. It is believed that these bonds would
shortly on the basis of 110 per cent for bonds having 12^ years to
run be worth 119.69. Referred to Prest & Forbes.
April 10, 1895.
Directors' meeting.
J. W. Gates elected president and director. R. Forsyth resigns as
director.
July 20, 1895.
Directors' meeting.
F. Huston resigns as director and from executive committee.
R. Forsyth elected director and member of executive committee.
December 10, 1895.
Directors' meeting.
SOUTHWEST CONNELLSVILLE COKE.
The president called attention to the fact that the Southwest
Connellsville Coke Co., 85 per cent of the stock of which is owned
by this company, possesses two distinct properties; one of them
known as the Southwest, consisting of upward of 2,000 acres which
has been improved, having 1,204 ovens, together with the necessary
shafts, buildings, tracks, and equipment; the other known as the
Revere property, consisting of 2,382 acres of coal with about 400
acres of surface which has not yet been improved. The Southwest
plant will yield its most economical maximum output for upward
of 20 years.
In order to improve the Revere property it will be necessary to
expend $800,000 to $1,000,000 in the erection of ovens, buildings,
etc. It is believed that the Revere property can be sold at the rate
of $1,000 per acre, while the interest or the holder of the remaining
15 per cent of the stock can be purchased for $750,000. This if car-
ried out would give this company entire possession of the Southwest
plant with all improvements while covering into the treasury of the
company $1,632,000 net for our interest in the Revere property.
The question was referred to a committee composed of Messrs.
Thayer, the president, and treasurer, with power.
February 11, 1896.
Directors' meeting.
Resolved, That an offer of $2,000,000 for the Revere coke property
be declined because less than $1,000 per acre.
4214 united states steel coepoeation.
May 21, 1896.
ore pukchases.
Directors' meeting.
The president reported that he had agreed to purchase 1,024,000
tons of ore at satisfactory prices from representatives of various
mining companies, except" that he had demanded of them that if
any of them should sell ore for deUvery prior to May 1, 1897, at a
lower price than that agreed to be paid by the Illinois Steel Co., each
of said sellers should make a reduction of the sale rate per ton on all
the unused ore purchased by this company for delivery by the said
date; this proposition had been decUned on the part of the sellers of
the ore. On motion, it was recommended that the guarantee
demanded by the president as above stated be waived, it being
understood that the respective sellers of the ore were willing to
guarantee the company against lower sales than they individually
might make but not against sales that might be made by other
sellers. In reference to the foregoing motion the president desired
it to be made a matter of record that he would not have purchased
nearly so much ore as he cUd had he not thought the guarantee
would cover all members of the ore association.
November 10, 1896.
Directors' meeting.
ATTITXJDE TOWARD OTHER STEEL MANUFACTURERS.
The question of the company's attitude toward other manufac-
turers of steel products in the United States with reference to the
maintenance of prices for the coming year, was fuUy considered and
discussed.
December 29, 1896.
Directors' meeting.
The offer from H. C. Frick to sell his stock in the Southwest Con-
nellsviUe Coke Co. was declined.
The offer of W. J. Raiaey, of Chicago, to purchase the interest of
the Illinois Steel Co. in the Southwest CoimeUsvUle Coke Co. was
referred to the finance committee with power to act.
A letter was read from Judge E. H. Gary, of Chicago, in which he
stated that he had made a careful examination of the records of the
Chicago, Lake Shore & Eastern Railway Co., and the Calumet & Blue
Island Railroad Co., respectively, and that in concurrence with the
views of W. H. Lyford, general counsel of the Chicago & Eastern
lUiaois Railroad Co., he advises and recommends that there should
be meetings of the stockholders and directors of each of the two com-
panies first named, ut which article* of consolidation should bi
entered into by the two companies, authorized and directed by all
the stockholders of eich, whereb^y all the property of the Indiana
company will be merged into the Illinois company, which should then
by the authority of its stockholders and directors issue bonds to the
extent of S2, 510,000, their payment being secured by a trust deed
upon ;»Il the property of the company in Illinois and Indiana, the
proceeds of these bonds to be used to take up all present incumbrance
of both companies and to finish the road.
UNITED STATES STEEL OORPOEATIOK. 4215
After due consideration and discussion, it was unanimously
resolved that the president be authorized to have Judge Gary's sug-
gestion carried out in so far ad the matter is under the control of this
company. It having been reported to the board that the Chicago,
Lake Shore & Eastern Railway Co. is incurring expenditures in the
construction of iU line (the money for which wyihave to be advanced
by the Illinois Steel Co.), without in so far as is known, definite
authority, it was on motion duly .seconded and resolved that the
fiaance committee ascertain wh.it amount of money is required by
the Chicago, Lake Shore & Eastern Railway Co. in the near future to
finish the work now in hand to which they are committed, and what
amount will be necessary to finish all contemplated extensions, and
the committee wiU stop at once all work that, in their judgment, is
not prudent or necessary.
Resolved, That the president of the Chicago, Lake Shore & Eastern Railway Co. be
required to furnish to the president of this company for the information of the board
a monthly statement showinp; the business done, the rates received for the same, and
the progress generally made m the construction and operation of its lines.
CLOSING OF THE UNIVERSAL CONSTRUCTION CO.
The president reported "that in accordance with the authority given
him at the meeting of the board on the 9th ultimo, he had given
instructions to have all operations and expenditures cease at the
work? of the Universal Construction Co. (of which this company owns
a majority of the capital stock).
February 10, 1897.
Directors' meeting.
The by-laws provide for a finance committee in addition to the
executive committee. The members of the finance committee were
elected as follows: WUliam L. Brown, Nathaniel Thayer, A. J.
Forbes-Lei th, John W. Gates.
RAIL makers' ASSOCIATION DISRUPTED.
The predident reported to the board the serious condition of affairs
arising from the disruption of the Rail Makers' Association (of which
this company is not -i member), and requested advice and instructions
from the board as to the proper course to be followed in protecting
the company's interests. Messrs. Forbes-Leith, Brown, and the
president were appoiated a committee with authority to act.
Apedl 21, 1897.
Directors' meeting.
Minnesota Iron Mining Co. contract for ore with Illinois Steel Co.
Carnegie, and Oliver Iron Mining Co.
Price made on parity with ore mined and shipped by the Carnegie
Steel Co. (Ltd.), and Oliver Iron Mining Co.
4216 united states steel cobpoeation.
October 19, 1897.
Directors' meeting.
RAIL makers' association RAIL-MAKING MATTERS.
The president presented for the consideration of the board a com-
mynication received by him concerniag rails.
Resolved, That the Lackawanna Iron & Steel Co. having suggested the formation of
an alliance of the rail makers, it is the sense of the meeting that such an alliance be
made, providing the same can be legally done and a fair basis reached, and that the
whole matter be referred to the executive committee with power.
SALE OF ROD PRODUCT OF JOLIET PLANT.
The president reported verbally the probable early consohdation
of all the principal wire compames ia the United States, and that
upon consummation of same this company would be asked either to
make a contract for a term of years with the new company to sell its
rods at a certain price to be agreed upon over and above the price of
billets at Pittsburgh or to sell its Joliet plant at an agreed price. The
matter was referred to the executive committee for a report.
December 17, 1897.
Directors' meeting.
The president reported that the company had been unable to close
with the Virginia Coal & Iron Co. for the purchase of coke, but that it
had closed with the Pocahontas Co. for 35,000 tons a month with
option of 50,000 tons a month, at $1.16 per ton at ovens, during the
year 1898.
Also that arrangement had been made with the Erie Railroad
whereby Pocahontas coke could be received by way of Columbus for
77 cents a ton less than we could get ConneUsville coal. The coke
was to be delivered to the Erie Railroad at Marion, Ohio, and that
road to carry it to Hammond, where it was to be delivered to the
C. L. S. & E. R. R., and that road to get 65 cents a ton from Ham-
mond.
In the Southwest ConnellsvUle Coke Co. arbitration matter, a
meeting of the arbitrators was held at Cleveland, Ohio, November 13,
at which the three parties to the arbitration were present, Mr. Frick
being accompanied by his counsel, Mr. Knox, and Mr. Brown by
Judge Gary, counsel for the Illinois Steel Co. Frick claimed about
1,562 acres, Mr. Brown claimed 1,186 acres, and Mr. Hanna figured
out about 1,269 acres; and the matter was finally compromised by
allowing Frick 1,250 acres. The matter would be closed by deeding
Frick 1,250 acres, and the surrender by him to the Illinois Steel Co.
of $600,000 stock in the Southwest ConneUsville Coke Co.
The sale of a portion of coal field to W. J. Rainey, not allotted to
Frick, was referred to a committee.
SALE OF RODS AND BILLETS.
The sale of rods and billets matter being in the hands of the execu-
tive committee, the chairman, Mr. John W. Gates, reported an
association had been formed which would probably control the entire
UNITED STATES STEEL COEPOEATION. 3.4217
production of rods and wire in the United States except that of the
Illinois Steel Co., and that said association had requested the Illinois
Steel Co. either to appoint a committee to meet a committee from
their association with a view to the sale of this company's product
of rods and billets for a period of 5 or 10 years, based upon an equi-
table price above the market value of pig u-on, and that it was desir-
able that said committee meet early in January. On motion of W, L.
Brown, duly seconded, it was resolved that J. W. Gates, A. J. Forbes-
Leith, and Nathaniel Thayer be appointed a committee to act in
connection with sale of this company's rods and billets product to
the consoUdated association.
Revere acreage sold to W. J. Rainey for $850,000.
Ninth annual report attached to the minutes showing balance sheet
as of December 31, 1897.
April 27, 1898.
Directors' meeting.
Plan to be formulated whereby the American Steel & Wire Co. wiU
take all the Illinois Steel Co.'s product or control it. W. L. Brown,
Illinois Steel Co., and general manager of the American Steel & Wire
Co. to report within 30 days.
Robert Bacon was elected director.
December 14, 1898.
Directors' meeting.
John W. Gates resigned as president.
EXECUTIVE AND FINANCE COMMITTEES ABOLISHED.
Whereas substantially all the stock of this company has been sold to the Federal
Steel Co., and the opportunities for beneficially financing the affairs of the company
have been materially increased: Therefore
Resolved, That the offices of executive committee and finance committee be, and
they hereby are, abolished and that the gentlemen holding positions on those com-
mittees, respectively, be, and they hereby are, relieved of further service.
January 10, 1899.
Directors' meeting.
The following persons resigned: Morgan, Rotch, Bartlett, J. W.
Gates, directors ; and W. P. Palmer, second vice president, and W. A.
Green, secretary. The following persons were elected: E. J. Buffing-
ton, president; E. Shearson, director; T. J. Hyman, secretary;
Richard Trimble, director.
January 16, 1899.
Directors' meeting.
Executive committee provided for in by-laws and executive
appointed.
December 26, 1899.
Directors' meeting.
It was reported to the meeting that the Universal Construction Co.
would sell the Illinois Steel Co. all of its assets, and turn over its
business to the Illinois Steel Co., for the sum of $50,000. Purchase
was ordered.
June 13, 1900.
Directors' meeting.
Property of the Universal Construction Co. transferred to the
Illinois Steel Co. as of December 31, 1899.
4218 UNITED STATES STEEL COEPOBATIOIC.
The Universal Construction Co. with the money paid a dividend of
100 per cent of the capital stock, and the lUinois Steel Co. has received
from the Universal Construction Co. $50,000 account capital stock of
the Universal Construction Co.
June 11, 1902.
Directors' meeting.
Contract with OHver Iron Mining Co. for operation of the Illinois
Steel Co.'s ore and limestone property at Iron Ridge, Dodge County,
Wis.
January 4, 1905.
Directors' meeting.
APPROVAL OF CONTRACT WITH DERING COAL CO.
Contract dated December 29, 1904, between Dering Coal Co., Illi-
nois Steel Co., American Steel & Wire Co. of New Jersey, American
Bridge Co., and American Sheet & Tinplate Co., for supply of coal
approved.
June 14, 1905.
Directors' meeting.
BILL OF SALE.
Know all men by these presents, that Chicago, Lake Shore & Eastern Railway Co.,
a corporation, in consideration of the sum of $2,401,891.13, the receipt of which is
hereby acknowledged, has sold, assigned, transferred, and set over and does hereby
sell, assign, transfer, and set oyer unto the Illinois Steel Co. the following cars and
locomotives of the said Chicago^ Lake Shore & Eastern Railway Co., and marked with
its initifl,l8 and numbered as follows:
1,000 steel coke cars bearing even numbers 9000 to 10998, inclusive.
150 steel ore cars bearing odd numbers 9301 to 9559, inclusive.
1 side-dump steel hopper car numbered 9601 .
150 steel gondola cars bearing odd numbers 11001 to 11299, inclusive.
125 steel gondola cars bearing odd numbers 11301 to 11549, inclusive.
1 steel car numbered 5600.
25 steel pig-iron cars bearing odd numbers 101 to 149, inclusive.
250 steel gondola cars numbered 2000 to 2249, inclusive.
13 locomotives (switch) numbered 44 to 56, inclusive.
5 locomotives (road) numbered 556 to 560, inclusive.
In witness whereof the said Chicago, Lake Shore & Eastern Railway Co. by virtue
of a resolution of its board of directors duly adopted at a meeting held on the 10th
day of April, 1905, has caused these presents to be signed by its president and its
corporate seal to be hereunto affixed, attested by its secretary, this 1st day of May, 1905.
Chicago, Lake Shohe & Eastern Railway Co.,
By A. F. Banks, President.
Attest:
F. D. Raymond, Secretary.
APPROVING LEASE OF CARS AND LOCOMOTIVES TO C, L. S. & E. ET.
Upon motion, duly made and seconded, the following resolution
was unanimously adopted:
Resolved, That the action of the president and secreta,ry of this company in executing
with the Chicago, Lake Shore & Eastern Railway Co. a contract of lease covering care
and locomotives dated the 1st day of May, 1905, and now presented here before this
board be, and the same is hereby, approved, ratified, and confirmed and ordered
spread upon the minutes in full.
UNITED STATES STEEL COKPOKATION. 4219
LEASE.
This agreemeat made this let day of May, 1905, by and between the Illinois Steel
Co., a corporation hereinafter called the lessor, party of the first part, and the Chicago,
Lake Shore & Eastern Railway Co., a corporation hereinafter called the lessee, party
of the second part, witnesseth, that for and in consideration of the sum of $1 paid by
the said lessee to the said lessor and also of the rents and covenants hereinafter men-
tioned, the said lessor has demised, let, and leased and by these presents does demise,
let, and lease to the lessee, subject to the conditions herein contained, for and during
the term of 10 years from the date hereof and thereafter until this lease shall be
terminated as hereinafter provided, the following cars and locomotives.
(Take in list in the bill of sale above.)
All of said cars and locomotives shall be taken and held by the lessee at and for the
rent hereinafter set forth and upon the terms and conditions and covenants following:
First. The said lessee covenants and agrees to pay to said lessor as and for rent for
the cars and locomotives herein described the sum of $150,000 per annum, payable
in monthly installments of $12,500 each on the last day of each month during the term
hereof at the office of the treasurer of the lessor in the city of Chicago, Cook County, 111.
Second. The lessee covenants and agrees to maintain and keep at its own proper
cost and charge all of said cars and locomotives in good order and repair in accordance
with the rules of the Master Car Builders' Association, adopted June, 1904, or any
modification thereof adopted hereafter.
Third. The said lessee further covenants and agrees to set aside annually a fund of
$200,000 to cover depreciation and replacement of said cars and locomotives. In case
any cars or locomotives are destroyed or scrapped they shall be replaced with other
cars or locomotives of equal value with those destroyed and such new cars or loco-
motives shall be the property of the said lessor and subject to all the terms and condi-
tions of this lease in the same manner and to the same extent as were the cars or loco-
motives which they replace. Such new cars or locomotives shall be paid for by the
said lessee out of said fund for depreciation and replacement above provided for upon
the order or request of the said lessor.
Fourth. The said lessee covenants and agrees to pay any and all taxes that may
be levied or charged on said cars and locomotives wherever they may be during the
existence of this lease.
Fifth. The lessee further covenants and agrees that it will at all times keep and
maintain upon said cars and locomotives in a conspicuous place an iron plate which
shall contain in plain characters the words "owned by the Illinois Steel Co., leased
to C, L. S. & E. Ry. Co.," for the purpose of making publicly known the ownership
of said cars and locomotives, and will attach to said cars and' locomotives such other
descriptions as said lessor may from time to time require for the purpose aforesaid.
In the event of any such marks or signs being destroyed the lessee will immediately
restore the same. In the event of the destruction of any cars or locomotives and their
replacement by other cars and locomotives the said marks and signs of ownership
emill be placed and kept on said cars and locomotives. The lessee shall do such
other things as may be required by law for the full and complete protection of the
rights of the lessor as the owner of said cars and locomotives. The lessor or its assigns
shall have the right to inspect said cars and locomotives by any person or agent
appointed by it once a year or oftener, and such agent shall be furnished by the lessee
with authority to make the inspection, and the lessee hereby covenants to render an
account to the said lessor on the first day of each year during the continuance of this
lease of the number of cars in actual service and the number and description of such
as may have been destroyed and substituted by others.
Sixth. The lessee further covenants and agrees that there shall be no assignment or
transfer of this lease nor any underletting or sale of the said leased property without
the consent of the lessor to be indorsed hereon, and that the lessee will have the right
to declare this lease terminated in case of any unauthorized sale or transfer thereof;
and the election of the lessor to terminate this lease^ under this clause shall have the
same effect as the retaking of the said cars and locomotives by the lessor, as hereinafter
provided; and the transfer by bankruptcy or under judicial process shall be deemed
a breach of this covenant.
Seventh. It is further mutually covenanted and agreed that in case the lessee shdl
make default in the payment of any part of the said rental for more than 30 days afetr
the same shall have become payable or shall fail to keep the said cars and locomotives
in good serviceable condition or shall fail to set aside said fund for depreciation and
replacement, as herein provided, or shall fail to perform any or the other covenants
herein contained, to be performed on its part, the lessor may declare this lease termi-
nated and may, by an agent or agents to be appointed for the purpose, enter upon the
31572— No. 53, pt. 2—12 31
4220 UNITED STATES STEEL COBPOBATION.
railroad or premises whereupon or wherein the said cars and locomotives may be
and to retake the said cars and locomotives at the expense of the lessee and withdraw
the same from the said railroad or premises. ...
Eighth This lease may be terminated at any time after the expiration of 10
yeais from the date hereof by either party giving to the other 1 year's notice in
writing of its election so to do, which said; notice may be given at any time either before
or after the expiration of 10 years from the date hereof.
Ninth In case of the termination of this lease in any of the ways herein provided,
either by expiration of its term or otherwise, the lessee hereby covenants and agrees
to surrender and turn over to the lessor the cars and locomotives covered by this lease
and forthwith to cause the said cars and locomotives to be run in the usud manner
and at the usual speed of freight trains to such point or points as shall be reasonably
designated by the lessor and there deliver the same to the said lessor.
Tenth. In case of the termination of this lease in any of the ways herein provided,
either by expiration of its term or otherwise, the lessee covenants and agrees to pay
and turn over to the lessor the sum of money which shall have accrued under the terms
hereof to the fund for depreciation and replacement as herein provided, less any part
thereof expended for new cars or locomotives according to the provisions hereof.
In witness whereof the parties hereto have caused these presents to be signed by theii
presidents and their respective corporate seals to be hereunto affixed, attested by their
respective secretaries the day and year first above written.
[seal.] Illinois Steel Co.,
By E. 3. BuppiNGTON, President.
T. J. Hyman, Secretary.
[seal.] Chicago, Lake Shore & Eastern Railway Co.,
By A. F. Banks, President.
P. D. Raymond, Secretary.
IRON RIDGE PROPERTY PTJRCHASE APPROVED.
The purchase from J. H. Tweedy, jr., and Howard Greene,
trustees, of an undivided one-fifth interest in the Iron Eidge property
"more particularly described in the real estate record book of the
company" for $50,000, approved-
December 14, 1905.
Directors' meeting.
Two hundred and eighteen shares of United States Steel Corpora-
tion preferred stock sold to United States Steel Corporation at 104.
universal portland cement co. leases and bills of sale in
exchange for capital stock of cement companies.
September 28, 1906.
Directors' meeting.
On motion duly made and seconded, the following resolution was
unanimously adopted:
Whereas Universal Portiand Cement Co., a corporation of the State of Indiana, has
made a proposition to Illinois Steel Co. for said steel company to give said cement com-
pany a lease for 50 years of the ground on which cement plant No. 1 is located, at an
annual rental of $300;
Also a lease for 50 years of the'ground on which cement plant No. 2 is located at an
annual rental of $1,200;
Also that said steel company shall sell to said cement company all of the buildings,
equipment, and other personal property belonging to said steel company on the ground
occupied by said cement plant No. 1 and said cement plant No. 2, and shall give said
cement company bills of sale for said buildings, eqiupment, and personal property;
also that said steel company diall convey by good and sufficient warranty deed to the
said cement company the lands on which cement plant No. 3 stands and on which
cement plant No. 4 is in process of construction, which lands were conveyed to the
said steel company by George T. Clure by deed dated April 9, 1903, and recorded in
UNITED STATES STEEL. OOEPOBATION. 4221
Lake County, Ind., in record 107, ps^e 225, April 10, 1903; also that said steel
company shall enter into a contract mm said cement company to build at the steel
company's cost cement plant No. 4 according to the present plans and specifications;
also that the said steel company shall convey to said cement company the trade-mark
or trade-marks designating the cement it has been manufacturing in said plants; and
Whereas the said Universal Portland Cement Co. offers to receive all the foregoing
from said Illinois Steel Co. in full payment for its entire capital stock, amounting
to 11,000,000 par value: Be it
Resolved, That the president and secretary of the Illinois Steel Co. are hereby au-
thorized and directed to execute all the instruments above mentioned and at the sole
cost of the Illinois Steel Co. to build cement plant No. 4 according to the present
plans and specifications and to deliver the same to the Universal Portland Cement
Co. and to accept in payment therefor the entire capital stock of said Universal Port-
land Cement Co., amounting to $1,000,000 par value.
March 16, 1908.
Directors' meeting.
E. E. STONE.
Resolved, That until further order of the board of directors, Mr. E. E. Stone be, and
hereby he is, authorized to purchase for and on behalf of this company spelter, copper,
and lead iu such amounts and at such prices as he in his discretion may determine.
June 10, 1908.
Directors' meeting.
PtJBCHASE PROM tTNrVERSAL PORTLAND CEMENT CO. Ol' ITS PLANTS 1, 2, 3, AND 4 AND
CANCELLATION OF LEASE FOR LANDS.
^Resolved, That this company purchase from the Universal Portland Cement Co. its
cement plants No. 1, No. 2, No. 3, and No. 4, and accept a surrender and cancellation
of the leases which the said Universal Portland Cement Co. holds for the lands upon
which said cement plants No. 1 and No. 2 are situated, and that this company pay a
consideration of $1,000,000 therefor, and that the officersof this company enter into and
execute any and all proper contracts, bills of sale, conveyances, deeds, and other docu-
ments to carry this resolution into effect.
Upon motion duly made and seconded, the following resolution
was unanimously adopted :
Resolved, That the officers of this company are hereby authorized and directed to
execute a lease to the Universal Portland Cement Co., leasing to that company cement
plants No. 2, No. 3, and No. 4 for an annual rental of 80 per cent of the net income of
said Universal Portland Cement Co., after it shall have paid all taxes and expenses in
the maintenance and operation of all its plants, and after it shall have set aside out of
its profits the quarterly sum of $25,000 for its own use, which said lease shall be in
the form now here presented to this meeting.
June 9, 1909.
Directors' meeting.
Agreements authorized with Milwaukee, Bay View & Chicago Rail-
way Co., Chicago & Kenosha EaUway Co., Calumet & Blue Island
Railway Co. (the predecessor of the Chicago, Lake Shore & Eastern
Railway Co.) as of June 1, 1909, "granting to said companies the
right to use the premises of this company upon which the railway
tracks of standard gauge are located at its different works as follows
(hst of different works follows).
Agreement authorized with Chicago, Lake Shore' & Eastern Rail-
way by secretary of this company, joining with Indiana Steel Co.
(now being operated by this company), granting to said railway com-
pany the nght to use the premises of the Indiana Steel Co., now being
operated by this company, upon which the railway tracks of standard
4222 UNITED STATES STEEL. COBPORA.TION.
gauge are located at the Gary Works of said Indiana Steel Co., located
at Gary, Ind., and to also enter into an agreement as of June 1, 1909,
joining with the Universal Portland Cement Co., therein vnth the
Chicago, Lake Shore & Eastern Railway Co., granting to said railway
companj' the right to use the premises of this company now being
operated by the Universal Co. at its Buflington Cement Works, at
Buffington, Ind.
SALE OP CARS, ETC., TO CHICAGO, LAKE SHORE & EASTERN RAILWAY.
Resolved, That the action of the president and secretary of this company in selling
to the Chicago, Lake Shore & Eastern Railway Co., for and in consideration of the sum
of $2,401,891.13, the cars and locomotives as set out in the bill of sale, made, executed,
and delivered by said president and secretary to said Chicago, Lake Shore & Eastern
Railway Co., be, and the same is hereby, approved, etc., and ordered spread upon the
minutes in full.
BILL OP SALE.
Know all men by these presents that Illinois Steel Co., a corporation, in considera-
tion of the sum of $2,401,891.13, the receipt of which is hereby acknowledged, has sold,
assigned, and transferred, and set over, and does hereby sell, assign, transfer, and set
over unto the Chicago, Lake Shore & Eastern Railway Co. the following cars and loco-
motives now leased to said Chicago, Lake Shore & Eastern Railway Co./ oy said lUinois
Steel Co., by an ajgreement made and entered into the 1st day of May, 1905, the said
cars and locomotives being marked with the initials of the Chicago, Lake Shore &
Eastern Railway Co., and numbered as follows.
(Take in list diown in the biU of sale in the minutes of directors' meeting lield June
14, 1905.)
In witness whereof, etc., dated May 29, 1909.
Termination of lease of said cars, which was dated May 1, 1905.
December 20, 1909.
Directors' meeting.
Debenture bonds for $30,000,000 authorized.
March 15, 1910.
Directors' meeting.
APPROVING LEASE FROM INDIANA STEEL CO. FOR PLANT AT GARY, IND.
Lease from Indiana Steel Co. of plant at Gary dated January 1,
1909, attached to minutes, approved.
Resolution authorizing $30,000,000 debenture bonds rescinded.
Resolution passed authorizing $30,000,000 "debenture gold bonds
of 1940." ^
.^. June 8, 1910.
Directors meeting.
Modification of rental under lease of January 1, 1908, with Univer-
sal Portland Cement Co., providmg for rent of 60 per cent of net in-
come instead of 80 per cent of net income.
UNITED STATES STEEL COEPOEATION.
4223
Dividends declared June 12, 1901, to September 12, 1911 :
Per cent.
June 12, 1901 2
Sept.3, 1901 1
Dec. 9, 1901 7
Mar. 19,1902 3
June 11, 1902 6
Sept. 11, 1902 7
Dec. 15, 1902 15
Mar. 13, 1903 12
June 10, 1903 23
Sept. 14, 1903 2
Dec. 12,1903 60
June 18, 1904 4i
Sept. 19, 1904 ^
Dec.12,1904 7
Mar. 20, 1905 3
Dec. 14,1905 7
Mar. 17, 1906 10
(Note. — The -above list is probably not entirely complete as a copy of all dividends
declared in the minutes, but contains almost all the dividends declared.
Per cent.
June 13, 1906 16
Mar. 18, 1907 12
June 12, 1907 10
Dec.16,1907 8
Mar. 16, 1908 5
Dec. 14, 1908 5
Mar. 15, 1909 1
June 9, 1909 2
Sept. 20, 1909 12
Dec. 20, 1909 16
Mar. 15, 1910 15
Sept. 15, 1910 15
Dec. 19, 1910 15
Mar. 15, 1911 2
June 14, 1911 6
Sept.12,1911 3
UNION STEEL CO.
Minutes of Meetings of Stockholders and Board of Directors
AS Extracted from October 16, 1899, and March 29, 1900,
Eespectively, to March 27, 1911.
October 16, 1899.
First incorporators' meeting.
Present: W. H. Donner, A. W. Mellon, E. B. Mellon, W. S. Mitchell,
and C. F. Farran.
The company was organized to maniifacture iron, steel, or any
other metal or article of ores under the act of April 29, 1874.
stockholders' names.
Num-
ber of
shares.
W.H. Dormer..
A. W. MeUon..
R. B. Mellon...
W.S.Mitchell..
0. F. Farran. .
333
333
333
1
1
1,000
Capital stock, 11,000,000, divided into 1,000 shares of $100 each;
$100,000 paid in cash.
March 29, 1900.
Stockliolders' first meeting.
Present: Donner, A. W. Mellon, R. B. Mellon, W. S. Mitchell, C. F.
Farran.
March 29, 1900.
Directors' first meeting.
Present: Donner, A. W. Mellon, R. B. Mellon, S. H. Waddell, and
W. S. Mitchell.
November 12, 1900.
Directors' organization meeting.
W. H. Donner elected president, A. W. Mellon elected vice presi-
dent, R. B. MeUon elected treasurer, H. S. Waddell elected secretary.
November 11, 1901.
Stockholders' meeting.
The following persons were elected directors: A. W. Mellon, R. B.
MeUon, W. H. Donner, W. S. Mitchell, and T. H. GUlespie.
November 11, 1902.
Special meeting of stockliolders.
By-laws adopted, providing in part that board of directors shall
manage corporation.
4224
united states steel corpoeation, 4225
February 18, 1903.
Directors' meeting.
Present: Messrs. A. W. Mellon, R. W. Mellon, W. H. Donner, T. H.
Gillespie, and L. H. Wheeler.
The president stated that since the organization of this company
the board and the officers of the company had transacted a large
amount of business, of which no record has been kept in the minutes
of the company, etc.; and
Resolved, That this board hereby ratify, conficnn, and adopt all acts, contracts, and
actions of the officers of the company made on its behalf.
Purchase of all the capital stock of the Republic Coke Co., River
Coal Co., Donora Mining Co., Donora Southern Railroad Co., Sharon
Steel Co.; also a majority of the Woven Wire Fence Co., under a
contract of Donner, which was assumed by the Union Steel Co. (also
Bamford tract, about 5 acres; Moorhead tract of about 13 acres;
Bradford-Allen farm, 37 acres; Heslep or Hazlet farm, bottom lands;
GUmore heirs' bottom lands, 42 acres) ; also 149 acres.
Resolution for this purpose passed.
After the property was tranf erred the Union Steel Co. paid as
follows :
For the capital stock of the Sharon Steel Co. the sum of $12,412,000
par value of the aforesaid 50-year 5 per cent gold bonds.
For. the other properties, $19,000,000 of the full paid-up non-
assessable capital stock of the Union Steel Co. and bonds of the afore-
said, to the amount of $18,214,000.
Capital stock increased to $20,000,000.
Resolved, That a stockholders' meeting be had to increase the indebtedness of the
company from nothing to $45,000,000.
February 18, 1903.
Stockholders' meeting.
Action of board of directors in accepting proposition of T. Mellon &
Sons, for sale of capital stocks of certain companies, lands, etc.,
approved.
Capital stock increased from $1,000,000 to $20,000,000.
Authorized increase of indebtedness to $45,000,000.
Mortgage for $45,000,000 to New York Security & Trust Co., dated
December 1, 1902.
Stockholders were: A. W. Mellon, 498 shares; R. B. Mellon, 250
shares; W. H. Donner, 25 shares; T. H. Gillespie, 1 share; L. H.
Wheeler, 1 share.
February 19, 1903.
Special meeting of board of directors.
Proper officers of the company authorized to purchase from Sharon
Steel Co. 25,100 shares of the Sharon Coke Co., aggregating at par
$2,510,000; 5,000 shares of the Sharon Sheet Steel Co., aggregating
at par value $500,000; 4,755 shares of the Sharon Tinplate Co., aggre-
gating at par value $475,500; 2,000 shares of the Sharon Coal & Lime-
stone Co., aggregating at par value $200,000; $3,500,000 of bonds of
the Union Steel Co. are to be used for this purpose.
Resolved, That the proper officers of the company be authorized to procure for this
company:
All the capital stock (2,000 shares) of the Sharon Ore Co., paying therefor $200,000,
whereof $174,800 shall be paid to the Union Trust Co. of Pittsburgh, trustee, under
the mortgage heretofore made by the Sharon Steel Co. to the said trust company,
4226 UNITED STATES STEEL COEPOBATION.
upon the said trust company releasing the shares of stock so held by it as trustee from
the lien of the mortgages made by the Sharon Steel Co.
Febeuary 21, 1903.
Board of directors' meeting.
The Sharon Steel Co. was requested to sell and to transfer and con-
vey unto the Union Steel Co. aJl of its property (excepting only its
franchise to be a corporation).
Sharon Sheet Steel Co. requested to sell and transfer unto this com-
pany aU of its property.
Said property conveyed to New York Security & Trust Co. as trus-
tee, to secure mortgage of Union Steel Co.
February, 1903.
Stockholders' special meeting.
Approval of acquisition of property of Sharon Steel Co. and Sharon
Sheet Steel Co.
Purchase from A. W. Mellon of 600 shares of the capital stock of
the Girard Land Co. authorized and directed.
March 11, 1903.
Special meeting of board of directors.
•W. C. McCausland elected treasurer in place of E. B. Mellon,
resigned.
March 12, 1903.
Special meeting of board of directors.
Present: W. H. Donner, A. W. Mellon, R. B. Mellon, L. H. Wheeler,
T. H. Gillespie.
Resolution that the New York Security & Trust Co. issue qualifying
shares of stock of the Donora Southern Railroad Co. to J. H. Reed, 3
shares; George E. McCague, 3 shares; William J. Post, 3 shares;
W. W. Blackburn, 3 shares; D. M. Clemson, 3 shares; D. G. Kerr,
3 shares; G. W. Kepler, 3 shares.
(Note. — No meeting is recorded in the minute book after this date until July 14,
1903.)
July 14, 1903.
Special meeting of board of directors.
The old officers and directors resigned, and W. B. Dickson, E. H.
Gary, W. J. Filbert, W. E. Corey, and Richard Trimble were elected
directors.
W. B. Dickson was elected president, vice Donner, resigned.
W. J. Filbert was elected secretary, vice T. H. Gillespie, resigned.
January 7, 1904.
Board of directors' meeting.
Present: W. E. Corey, WTB. Dickson, Richard Trimble, and W. J.
Filbert.
The president presented the form of indemity bond prepared by
counsel, to be given to the Pennsylvania Railroad Co., for the sum of
$8,662.64, indemnifying that company against any loan which it may
suffer due to the issuance of duplicate checks to the Union Steel Co.
for the aggregate amount of $4,331.32, in place of three original
checks for $1,738.66, $1,820.87, and $771.79, respectively, \diich
were lost or destroyed and never received by the Union Steel Co.
UNITED STATES STEEL OORPOBATION. 4227
On motion, duly seconded, it was —
Resolved, That the president and secretary be, and they hereby are, authorized to
execute on behalf of the Union Steel Co. lie indemnity bond to the Pennsylvania
Railroad Co. in the sum of $8,662.64, as aforesaid.
(The minutes are indorsed "This bond canceled later as checks
were found.")
Operating contracts with Carnegie Steel Co., and American Steel
& Wire Co. approved.
The president submitted forms of operating contracts which he
recommended be entered into by this company, leasing its property
as stated. The president stated this naatter has received careful
consideration by the interested officers of the company and by the
principal stockholder, and it was their opinion that the contracts
were most favorable to the company; they saved to the company
the entire net operating income of the property leased, placed upon
the lessee the responsibiUty of furnishing without charge to Union
Steel Co. any working capital that might be required in excess of the
amount this company had at the date, of leasing the property (with
full development of the property this would be considerable) and
obtained for the company for the operation of its plants wholly per-
fected administrative organizations practically without cost. Thus
the net income from the property should, other things being equal,
be considerably more than would result if the plants were operated
independently.
The operating contracts are as follows:
BETWEEN UNION STEEL CO. AND CARNEGIE STEEL CO. OF NEW JERSEY.
Carnegie Steel Co., a corporation of New Jersey, hereafter called "Carnegie," and
Union Steel Co., a corporation of Pennsylvania, hereafter called "Union,'' hereby
agree as follows:
Krst. Union hereby leases unto Carnegie from March 1, 1903, its blast furnaces,
open-hearth furnaces, and blooming mill, and all equipment connected therewith
and used in the operation thereof, situate at Donora, Washington County, Pa., and
forming part of its "Donora plant," and also its blast furnaces, open-hearth furnaces,
blooming mill, and plate mill, and all equipment connected therewith and used in the
operation thereof, situate at Sharon, Pa., and being part of its "Sharon plant."
Second. Carnegie agrees to maintain and operate said plant in a good and workman-
like manner, making all proper and needful repairs thereto in accordance with the
requirements of the morlgage made by Union to New York Security & Trust Co.,
dated December 1, 1902, and to surrender up the said furnaces and property to Union
in good condition at the expiration or termination of this lease. And as Union has
transferred to Carnegie with said property certain personal property, including inven-
' tories and cash assets, for use by Cajnepe as working capital in operating said prop-
erty, Carnegie a^ees upon termination of this lease to, return to Union an equivalent
value therefor, either in cash or inventories, or other assets acceptable to Union.
Third. Carnegie agrees to pay to Union, as rental hereunder, the net income received
by it from the operation of said plants, after payment of all expenses and taxes incurred
by it in the operation and maintenance of said plant. The precise method under
which said net income shall be determined, and the decision as to what constitutes
net income to be agreed upon by the auditor of Carnegie and secretary of Union.
Carnegie agrees to render Union monthly detailed reports of operations of the company
in such form as may be satisfactory to Union; and also to make settlement in cash
of all amounts due Union in accordance with this section, quarterly on or before the
25th days of February, May, August, or November. In case the net result of opera-
tion of uie property should be a deficit, then Union will reimburse Carnegie therefor
quarterly on similar dates. Carnegie agrees that in determining the net income of
me property leased thereunder it will allow credit for sales of products and materials
manufactured at and sold from said plants at a selling price therefor equaling approxi-
mately the prices which Carnegie may at that time be receiving for similar products
4228 UNITED STATES BTEELi COEPOBATION.
sold under generally similar conditions from other mills owned or operated by Carne-
gie and located in me same district as are the miUs leased hereunder. Carnegie fur-
ther agrees that in determining such net income any products and material transferred
from the mills hereby leased to any other mills or plants owned or operated by Gat-
negie shall be credited at a price therefor equal at least to prices it would receive if
said products or materials were sold to any company affiliated with the United States
Steel Corporation but not owned or operated by Carnegie.
Fourth. The cost of additions, construction, and improvements made by Carnegie
to or on the property hereby leased shall, if the same be not includedin detennimng
the net income according to section third hereof, be charged to Union, and Union
agrees to reimburse Carnegie therefor quarterly on the same dates as hereinbefore pro-
vided for settling the net income, provided, however, that Carnegie shall undertake
no such additions, construction, and improvements except under the express sanction
of Union.
Fifth. This lease shall continue for a period of one year frona the date hereof and
thereafter until the same shall be terminated by either party giving unto the other six
months' notice of its intention so to terminate this lease. This lease shall not be
assigned by Carnegie without consent in writing of Union. All matters of dispute
arising between the parties to this lease and agreement shall be referred to the finance
committee of the United States Steel Corporation, as arbitrator, and its decision shall
be final and binding upon the parties hereto.
Sixth. This lease is made by Union and accepted by Carnegie under and subject
to the provisions of the indenture between Union and New York Security & Trust Co.,
dated December 1, 1902.
In witness whereof the parties hereto have caused this instrument to be executed
this 2d day of May, A. D. 1904.
Cabnbqib Steel Co.,
By A C. Dinkey, President.
[seal.] W. W. Blackburn, Secretary.
Union Steel Co.,
By Richard Trimble, Pre»ident.
[seal.] W. W. Filbert, Secretary.
BETWEEN UNION STEEL CO. AND AMERICAN STEEL & WIRE CO. OP NEW JEB8BT.—
OPERATING CONTRACT.
The American Steel & Wire Co. of New Jersey, a corporation of New Jersey, herein-
after called "American" and Union Steel Co., a corporation of Pennsylvania, herein-
after called "Union," hereby agree as follows:
First. Union hereby leases unto American from March 1, 1903, its rod and wire mills
and all equipment connected therewith, and used in the operation thereof situate at
Donora, Washington County, Pa., and forming part of its "Donora plant, " and also its
wire and rod mills and all other equipment connected therewith and used in the
operation thereof, situate at Sharon, Pa., and forming part of its Sharon plant.
(Note. — This contract is similar in form to and simultaneous with the foregoing
contract with the Carnegie Steel Co., except the above paragraph and liie following
signatures:)
The American Steel & Wire Co. of New Jersey,
[seal.] By William P. Palmer, President.
Attest: A. F. Allen, Secretary. "
Union Steel Co.,
[seal] By Richard Trimble, Vice President.
Attest: W. J. Filbert, Secretary.
Januaet 8, 1904.
Annual meeting of stockholders.
A. W. Mellon seems to hold 199,995 shares out of 200,000 shares at
this meetmg. See proxy dated November 7, 1903, to W. J. Filbert
or W. B. Dickson, or either of them, executed by A. W. Mellon, by
K. B. Mellon, attorney in fact.
Special meeting, board of directors.
November 29, 1904.
One nulUon one hundred and sixty-seven thousand seven hundred
and seventy-six doUars and one cent written off to profit and loss
sulplus, which accrued prior to December 1, 1902.
UNITED STATES STEEL. COKPOBATION. 4229
Union Steel Co. general balance sheet, Sept. 30, 1904.
Assets:
Cost of works and properties $42, 066, 303. 89
Investments in and advances to subsidiary companies 18, 891, 111. 65
Trustee of sinking fund 856, 381. 71
Union Trust Co. of Pittsburgh, deposit under mortgage 295, 141. 31
Working assets:
Accounts receivable $3, 974, 826. 14
Inventory 498. 19
Sharon Tin Plate Co. loan 275,000.00
Cash 83,959.95
— — 4, 334, 284. 28
Profit and loss:
Prior to Dec. 1, 1902, credit 1,167,776.01
Since Dec. 1, 1902 4,074,272.00
2, 906, 495. 99
69, 349, 718. 83
Liabilities:
Capital stock 20, 000, 000. 00
Mortgage bonds 39, 967, 000. 00
Sundry liabilities 1, 717, 890. 75
Accounts payable 76, 128. 07
Credit taxes 658, 183. 33
Credit interest 5,304,591.07
Due United States Steel Corporation 7, 750, 793. 22
Fund accounts:
Sinking-fund credit, not due 701, 170. 00
Sinking fund paid 856, 381. 71
Sundry funds 74, 373. 90
1, 631, 925. 61
Board of directors' meeting.
69, 349, 718. 83
New York, Janvxiry 3, 1906.
AUTHORIZING EXECUTION OF PETITIONS KE VACANCY OF CERTAIN
STREETS NEAR DONORA PLANT.
The vice president presented seven petitions addressed to the chief
burgess and town council of the borough of Donora, Pa., making
application for the vacancy of certain streets and alleys in West
Columbia, in which town parts of this company's Donora plant are
located.
On motion of Mr. Gary, seconded by Mr. Filbert, it was unani-
mously—
Resolved, That the president and secretary of this company be, and they hereby are,
authorized and directed to formally execute the above-mentioned petitions for and in
behalf of this company and arrange to ha^■e same presented to the chief burgess and
town council of the borough of Donora, Pa.
License agreement to Erie Eaiboad to build track to the South
Works of Union Steel Co. and works of Sharon Steel Hoop Co. and
the "bridge of the Erie Kailroad across Shenango River, which said
license may be revoked by Union Steel Co. giving 90 days' notice.
Mercer VaUey Railroad Co. — ah capital stock owned by Union
Steel Co. — increased to $275,000 authorized at par value of $50 each.
It is noted that the name of the New York Security & Trust Co. is
changed to New York Trust Co.
4230 united states steel coepoeation.
September 26, 1905.
Special meeting of board of directors.
The president submitted to the board a statement certified by the
secretary and auditor of the company in respect to expenditures
made during the period December 1, 1902, to April 1, 1905, for addi-
tional property, construction, and improvements by the Union Steel
Co. and by several of its subsidiary companies, the greater portion
of whose capital stock is owned by the Union Steel Co. and pledged
under the indenture or deed of trust dated December 1, 1902, and
executed by the Union Steel Co. to the New York Security & Trust
Co., trustee.
The following is a copy of the statement above referred to :
Summary of expenditures made from Dec. 1, 1902, to June SO, 1905, by Union Steel
Co. and its subsidiary companies named below for additional property, construction, and
improvements per certified detailed statements attached.
Expended by Union Steel Co. (see Exhibit A) $7, 7G4, S77. 23
Expended by subsidiary companies of Union Steel Co., viz:
By Sharon Coke Co. (see Exhibit C) $997, 093. 36
By River Coal Co. (see Exhibit D) 704, 857. 51
By Mercer Valley R. R. Co. (see Exhibit E)-. 109, 570. 03
By Donora Southern R. R. Co. (see Exhibit F) 74, 578. 79
By Sharon Coal & Limestone Co. (see Exhibit G) . . . 131, 340. 94
Total (see Exhibit B) 2, 017, 440. 63
Total for Union Steel Co. and subsidiary companies named. ... 9, 782, 317. 85
Funds for the payment of the foregoing have been obtained from the fol-
lowing sources; Union Steel Co.'s mortgage and collateral trust bonds
(issued under indenture dated Dec. 1, 1902, by Union Steel Co. to
New York Security & Trust Co. , trustee) have provided funds for part
payment of above expenditures as follows:
$1,512,500 par value of the issue of $30,626,000 par
value of bonds, issued in accordance with section 2,
article 1 of the above indenture $1, 512, 500. 00
The $7,000,000 par value issued in ac-
cordance with section 3, article 1 of
above indenture $7, 000, 000. 00
Less proportion of the same used in pay-
ing and retiring bUla payable as pro-
vided in the aforesaid section 3 2, 855, 772. 21
4,144,227.79
5, 656, 727. 79
Leaving a balance of expenditures for account of which no bonds have
been issued 4,125,590.00
Union Steel Co.'s mortgage and collateral trust bonds may be issued for
account additional property, construction, and improvements as per
statement below, to the par value of 3, 874, 000. 00
Union Steel Co.'s mortgage and collateral trust bonds, amount issued to
date 37,697,000.00
Reserved for issue only for the acquisition, exchange, or
payment for Sharon bonds $3, 500, 000. 00
Less issued to date account of both 71 000 00
. '- '— 3,429,000.00
Bonds which may yet be issued for additional property, construction,
and improvements 3, 874, 000. 00
Total of issue 45^ 000, 000. 00
The president stated that it appeared from the aforesaid statement
that there had been expended during the period mentioned for addi-
UNITED STATES STEEL CORPOEATION. 4231
tional property, construction, and improvements the sum of
$4,125,590.06 in excess of funds realized from proceeds of the Union
Steel Co.'s first mortgage and collateral trust bonds heretofore issued
and sold for account of capital expenditures incurred subsequent to
December 1, 1902, the date of the mortgage or deed of trust given by
the UniOn'Steel Co. to the New York Security & Trust Co., trustee, to
secure aforesaid named issue of bonds. The president further stated
that in accordance with section 5 of article 1 of aforesaid mortgage
there could be issued $3,874,000 par value of Union Steel Co.'s first
mortgage and collateral trust bonds for account of said balance of
capital expenditures.
Resolved, That the Union Steel Co. may issue $3,874,000 of bonds additional, to be
applied to the payment of $4,125,590.06 "Additions, construction, and improvements, "
bonds to be sold at not less than par and accrued interest.
December 28, 1905.
Special meeting board of directors.
Union Improvement Co. land purchased for $125,000.
May 14, 1908.
Board of directors' meeting.
FORMAL LEASE AND OPERATING AGREEMENT WITH AMERICAN SHEET
& TINPLATE CO.
(Note. — A copy of this agreement was furnished by the American Sheet & Tin Plate
Co.)
January 5, 1909.
Board of directors' meeting.
ConsoUdation of Republic Coke Co. and River Coal Co., capitahzed
at $1,500,000, to be consohdated under the name of Repubhc Con-
nellsviUe Coke Co., with a capital stock of $2,500,0,00.
Merger approved.
Agreement to lease properties of Union Co., formerly operated by
Carnegie Steel Co., to American Steel & Wire Co.
Lease and operating agreement of Donora plant.
Agreement by Carnegie Steel Co. returning to Union Steel Co. the
Donora plant.
June 4, 1909.
Board of directors' meeting.
Sale of 111 shares of Union Dock Co., owned by this corporation.
April 13, 1910.
Board of directors' meeting.
Letter from James J. Campbell to transfer the organization of the
company to Pittsburgh, i. e., to have those positions filled by some-
body there. It was resolved that it was not for the best interests of
the company.
April 27, 1911.
Resolution adopted that the Sharon Steel Co. be requested to call
for prior payment, the remaining $177,000 of bonds outstanding
under its mortgage for $1,000,000 and that the Union Steel Co. agrees
to furnish or have furnished, before June 1, 1911, funds necessary in
addition to the $85,300 available as aforesaid, to pay and redeem the
$177,000 par vallie of said Sharon Steel Co. bonds.
(Last meeting recorded is that of Apr. 27, 1911.)
AMERICAN STEEL & WIRE CO. OF NEW JERSEY.
First meeting of stockholders and incorporators, January 17, 1899.
The original stockholders were Joseph R. Ellicott, 1,000 shares;
Robert S. Green, 1,000 shares; Theodore S. Beecher, 500 shares. The
capital stock was $90,000,000, divided into $40,000,000 of 7 per cent
cumulative preferred stock and $50,000,000 of common stock.
February 20, 1900.
Meeting of stockholders held.
It was resolved that the certificate of incorporation be amended
" by specifically conferring upon this company in its certificate of incoi'-
poration the power: First, to engage in and carry on the business of
constructing, buying, selling, leasing, and operating railroads, wharves,
piers, and kindred business and enterprises; second, to engage in and
carry on and conduct the business of buying, selling, and operating
railroads, wharves, piers, and kindred busmess and enterprises; third,
to engage in and carry on and conduct the business of buying, sellmg,
leasing, and operating steamships and other methods of water trans-
portation and any and all business incident to and connected there-
with; fourth, to guarantee the payment of and assume the obligations
of other companies, persons, and firms; fifth, to redeem, retire, or other-
wise acquire and cancel the preferred stock of this company as by the
laws of the State of New Jersey provided and permitted; sixth, to have
the board of directors fix the working capital of this company in con-
formity with the present by-laws of the company; seventh, to have the
board of directors elect an executive committee possessing the powers
of the board in conformity with the present by-laws of the companj^;
eighth, to have the board of directors enabled to declare and pay divi-
dends on the common stock of the company quarterly out of the sur-
plus or net earnings; of the current dividend year during such dividend
year.
A published statement by J. W. Gates, chairman, dated February
20, 1900, contained the balance sheet covering the period from the
organization of the company to December 31, 1899, and the extracts
shown below:
Balance Sheet, Dec. 31, 1899.
Assets.
Real estate, buildings, plant and machinery $79, 629, 512. 72
Investments and advances to subsidiary companies 4, 064, 475. 1&
Bills and accounts receivable 8, 247, 220. 36
Inventories 10, 995, 446. 10
Cash 3,225,293.42
106, 161, 947. 7&
4232
UNITED STATES STEEL OOEPOEATION. 4233
Liabilities.
Capital stock:
Preferred $40, 000, 000. 00
Common 50, 000, 000. 00
$90, 000, 000. 00
Accounts payable (since paid) 4, 899, 418. 05
Reserves:
Depreciation 1,000,000.00
Bad debts, discounts, etc 200,000.00
— 1, 200, 000. 00
Profit and loss account:
Profit for calendar year 1899 13, 362, 529. 73
Less —
Depreciation $1, 000, 000. 00
Reserve for possible bad debts,
discounts, etc 200, 000. 00
-^ 1, 200, 000. 00
Net profit .- 12,162,529.73
Deduct dividends 2, 100, 000. 00
10,062,529.73
106, 161, 947. 78
Note. — The company was not incorporated until January 14, 1899, but as the prop-
erties were taken over as going concerns as of January 1, 1899, the profits for the entire
calendar year were included above.
The books and accounts were audited and the profits certified by Messrs. Jones,
Caeser & Co., chartered accountants. * * *
I take this opportunity also of calling attention to one or two matters in connection
with the business of this corporation, indicating the value of its organization.
We have found that the economies resulting from the organization of this business and
the ownership of the various plants and properties have been in all respects fully up to
the expectation entertained at the outset.
The export of wire goods and wire products has been one of the clearest demonstra-
tions which could become manifest of benefits resulting from the organization of this
company.
The Government statistics of exports of these commodities show that from 1890 to
1898, both inclusive, the entire amount of exports by all persons engaged in that busi-
ness in the United States amounted to something over $16,000,000.
The American Steel & Wire Co. during the one year of its existence exported from
January, 1899, to the 31st day of December, 1899, wire and wire goods in value to the
amount of over $9,000,000; thus this corporation in one year exported more than 50
per cent as much as was exported in the entire period from January, 1890 to 1899, by
all persons and corporations engaged in that busmess throughout the United States.
Tne export business of this company during the first two months of 1900 thus far
presents a large and material increase over that of 1899, and for the year of 1900 the
export business of this company will be, as we believe, gratifyingly larger than
1899. * * *
Respectfully submitted.
J. W. Gates, Chairman,.
February 19, 1901.
Meeting of stockholders held.
Thomas F. Eyan elected director.
A resolution was passed authorizing the purchase of the American
Steamship Co. of New Jersey by the^ American Steamship Co. of
West Virginia, for 5,633 5-per-cent gold bonds, to be guaranteed by
the American Steel & Wire Co. The American Steamship Co. owns
12 vessels on the Great Lakes. The capital stock of the American
Steamship Co. of West Virginia is to be transferred to the American
Steamship Co. of New Jersey and the said stock of the West Virginia
Co. transferred to the American Steel & Wire Co.
4234 united states steel cokpobation.
April 20, 1903.
Meeting of stockholders held.
Purchase of plant at San Francisco in block at Sixteenth and Fol-
som Streets approved.
Minutes op Executive Committee from January 17, 1899, to
April 27, 1901, as Extracted.
February 16, 1899.
Meetiag of executive committee held.
PURCHASE of EDGAR Jzinc Plants. ]
On motion, duly seconded, it was unanimously resolved that the
proper officers of this company be, and they are hereby, authorized to
acquire on behalf of the company the property of S. C. Edgar, at
Carondelet, or South St. Louis, and the entire property of the Edgar
Zinc Co., at Cherryvale, Kans., for the sum of $450,000 cash, on the
following terms and conditions : Mr. Edgar and his associates to agree
to go on and buUd a plant at Cherryvale, Kans., as originally laid out,
at their own expense; that we take possession of the South St. Louis
plant on March 1, 1899; inventory all raw material and pay for same
at actual cost; South St. Louis property to be $125,000 and payable
March 1 m addition to the inventory ; Cherryvale plant to be $325,000
and payable $100,000 March 1, 1899, balance May 1, 1899; Cherryvale
property to carry with it aU of the leases for gas lands and certain
real estate; we are to take over all contracts made prior to this day;
Mr. Edgar to agree to sell his stock in the Glendale Zmc Co. at $60 per
share (par value being $100) and endeavor to acquire for us the bal-
ance at the same price per share.
February 21, 1899.
Meeting of executive committee held.
purchase of billets from OHIO STEEL CO.
Resolved, That the purchase of 7,500 tons of billets from Ohio Steel
Co., at $19 per ton f. o. b. Youngstown, be approved.
Resolved, That the purchase of 25,000 tons of billets from the Lack-
awanna Iron & Steel Co., at $19 f. o. b. Scranton, be approved.
March 1, 1899.
Meeting of executive committee held.
It was resolved to accept the offer of Frederick P. Voorhes to convey
and transfer to this company aU the corporate assets and property so
about to be acquired by him from the American Steel & Wire Co.,
namely :
(a) AU the plants, lands, and properties formerly of the American
Steel & Wire Co., as follows:
(1) American plant, at Cleveland, Ohio; (2) Consolidated plant,
at Cleveland, Ohio; (3) Baackes plant, at Cleveland, Ohio; (4) H. P.
plant, at Cleveland, Ohio; (5) plant at Findlay, Ohio; (6) plant at
Salem, Ohio; (7) plant at St. Louis, Mo. ; (8) plant at Louisville, Ky.;
(9) plant at Allentown Pa.; (10) plant at Kankin, Pa.; (11) plant at
Beaver Falls, Pa.; (12) plant at Anderson, Ind; (13) plant at Evans-
UNITED STATES SIEEL CORPOKATION. 4235
ton, 111.; (14) plant known as Rockdale plant, at Joliet, lU.; (15)
plant known as Scott Street plant, at Joliet, III.: (16) Ellwood Man-
ufacturing Co. plant, at De Kalb, III; (17) Ellwood Wire & NaU
Co., at De Kalb, 111.
(6) All and singular any other personal or mixed property formerly
of the American Steel & Wire Co. and so acquired from it by the said
Voorhes including goods, chattels, wares, merchandise, stock on
hand, supplies, iron, steel, coal, lumber, fuel, material manufactured
and unmanufactured or in process of manufacture.
(c) All choses in action and evidences of indebtedness, etc.
(d) All letters patent and rights under patents, etc.
(e) All the leases and leasehold rights ana interests formerly of the
American Steel & Wire Co., and so acquired by the said Voorhes
of any and all property including warehouses, etc., as follows:
(1) Portland, Oreg.; (2) Seattle, Wash.; (3) Kansas City, Mo.;
(4) Lincoln, Nebr.; (5) Denver, Colo.; (6) St. Paul, Minn.; (7) New
Orleans, La.; (8) San Francisco, Cal. * * *
Further resolved, that the American Steel & Wire Co., of New
Jersey, in consideration of the sale, assignments, and transfer, cove-
nant and agree with the said Frederick P. Voorhes, to pay or cause
to be paid to the directors of the said American Steel & Wire Co.
the sum of $25,440,000, for account of its stockholders, to be dis-
tributed among them at the rate of $106 per share, and further that
the American Steel & Wire Co., of New Jersey, will assume all the
debts and perform the contracts of the American Steel & Wire Co.,
etc. * * *
And further that the said Frederick P. Voorhes as the holder of
record of 119,208 shares of the preferred stock and 119,922 shares of
the common stock of the American Steel & Wire Co., of which stock
this company is the beneficial owner, be authorized and requested
to duly acknowledge receipt of the sum of $106 upon each of said
shares as the distributive share of said stock in the assets and property
of the American Steel & Wire Co., and thereupon to surrender the
certificates of stock in said company so held by him to be stamped
upon their faces with the payment of such distributive share.
March 10, 1899.
Meeting of executive committee held.
Eeference is made to the purchase of the Washburn & Moen Manu-
facturing Co. and the Worcester Wire Co., and the terms of such
purchase.
March 13, 1899.
Meeting of executive committee held.
Mr. William Edenborn was authorized on behalf of this company
to contract for the purchase of the stock or property of the Schoen-
berger Steel Co. for the consideration of not exceeding $3,600,000,
March 20, 1899.
Meeting of executive committee held.
Eesolved, that the action of Mr. Edenborn in closing the deal
with the Schoenberger Steel Co. and agreeing to pay within 30 days
$300,000 in addition to the amount already paid be, and the same
is hereby, approved.
31572— No. 53, pt. 2—12 32
4236 united states steel coepoeation.
March 21, 1899.
Meeting of executive committee held.
ROD PTTRCHASES OF FEDERAL STEEL CO.
Mr. Lambert stated that the question of purchasing the rods pro-
duced by the Illinois Steel Co. for the last half of 1899 had been taken
up with E. H. Gary and E. J. BuflSngton, but nothing had been
accomplished. The offer made by the Federal Steel Co. representa-
tives being $27 per ton and the offer made by William Edenborn and
John Lambert being $25. Mr. Ellwood suggested that Messrs.
Lambert & Edenborn take the matter up further with Messrs.
Gary & BuflBngton and if they agree to make the price $26 or $26.50
to close the deal.
March 22, 1899.
Meeting of executive committee held.
ROD PURCHASES OF THE FEDERAL STEEL CO.
Action of Mr. Lambert in purchasing " the rods to be made by the
Illinois Steel Co. the last half of the year at $26.50 per ton f. o. b.
our different works in Joliet, 111.," was approved.
March 29, 1899.
Meeting of executive committee held.
Edgar Zinc Co. property was taken over as of March 23, 1899,
after deducting from the purchase price $60,613, being the amount
estimated to complete the plant.
Mat 15, 1899.
Meeting of executive committee held.
IMPROVEMENTS SUGGESTED FOR THE WORCESTER PLANT.
Worcester is now producing 3,000 tons of open-hearth steel per
month of high quality. They are purchasing 2,000 tons basic open
hearth and 5,000 tons Bessemer. It is estimated that New England
produces from 250,000 to 300,000 tons of cheap scrap every year,
most of which is shipped out of New England either to Providence
and then by water or by rail. This scrap could be purchased as low
as $7 and upwards per ton delivered f. o. b. Worcester. Has sold
as low as $5. For some time past we have been producing from this
cheap scrap 500 to 800 tons of 4-inch wire billets monthly at a cost
of $14.82 per gross ton. There is no reason why Worcester can not
have the advantage of this cheap scrap for producing sufficient steel
for their entire requirements, i. e., 10,000 tons per month, at a saving
of at least $2 per ton on 7,000 tons of their requirements. With this
object in view, we advise a new open-hearth steel plant and blooming
mill consisting of four 50-ton rolling basic furnaces and one blooming
mill at a cost of $584, 100. With such a plant the annual saving in the
Worcester district will be in round numbers $150,000.
united states steel ookpobation. 4237
May 25, 1899.
Meeting of executive committee held.
Purchase of property of Pittsburgh Horseshoe Co. for $38,000 cash,
the deed to be taken in the name of Wallace H. Kowe, and by him
deeded to the American Steel & Wire Co.
May 26, 1899.
Meeting of executive committee held.
Purchase of copperas plant of W. J. Hayes, at Newburg, Ohio, for
$91,000.
May 29, 1899.
Meeting of executive committee held.
SALE OF PUGET SOUND WIBB NAIL & STEEL CO.
Resolved, That D. A. Merriman, manager of the Puget Sound Wire
Nail & Steel Co. be^ and he is hereby, instructed to submit by telegraph
the best offer he is able to obtam for the Everett plant, except-
ing the wire-nail and wire-drawing machine and manufactured
goods * * *.
Resolved, That as soon as the Everett property is sold in accordance
with the foregoing resolution, that D. A. Merriman be, and he is
hereby, further instructed to ship all the wire-nail and wire-drawing
maclunery of the plant, together with the stock on hand, to the San
Francisco warehouse.
June 5, 1899.
Meeting of executive committee held.
PURCHASE OF MISSOURI WIRE & NAIL CO.
Resolved, That the matter of purchase of the wire, wire machinery,
materials, tools, fixtures, and such other utensils and machinery pei^
taining to the plant of the Missouri Wire & Nail Co., located at East
St. Louis, III., as may be deemed necessary, for a sum not exceeding
$10,000, and for the wire rods and other manufactured goods at sucE
price as may be agreed upon, be referred to WUliam Edenborn with
power to ax;t. It is further authorized that he may make the pur-
chase in his own name for the sake of convenience and transfer the
property to the company later on.
June 6, 1899.
Meeting of executive committee held.
APPROPRIATION FOR ADVERTISING.
Resolved, That the advertising committee, consisting of A.M.Crane,
C. T. Boynton, A. W. Sprague, and Julius Schneider; be authorized
to expend a sum not exceeding $100,000 for advertismg during the
coming year, beginning with Jiuy 1, 1899.
July 8, 1899.
Meeting of executive committee held.
Performance of lease by American Coke Co., lessee, guaranteed
to Puritan Coke Co., lessor, by American Steel & Wire Co. of New
Jersey.
4238 united states steel corporation.
July 8, 1899.
Meeting of executive committee held.
Seward, Guthrie & Steele resigned as counsel and Max Pam ap-
pointed as counsel.
July 24, 1899.
Meeting of executive committee held.
Coimsel was directed to incorporate the American Steel & Wire Co.
of Colorado for the purpose of acting as factor for this company
in said State with the lowest possible capital stock consistent witn
economical operation.
July 26, 1899.
Meeting of executive committee held.
A warehouse was directed to be built at Waukegan at a cost not
exceeding $18,000.
Resolved, That authority be, and is hereby, given for the payment
of the following bills for services rendered by attorneys, said bills
having been duly presented through Max Pam, general counsel:
Lawrence Maxwell, Cincinnati $1,052.73
Dana & Long, New Castle, Pa 300.00
Brandeis, Dunbar & Mutter, Boston 2, 227. 58
D. S. Alford, Lawrence, Kans 108. 10
C. W. Brown, Joliet, Kans 464. 87
Do 165.00
Carey, Boyle & Mullins, Salem, Ohio 150.00
Willis F. McCook, Pittsburgh 2, 900. 00
Squire, Sanders & Dempsey, Cleveland, Ohio 10, 195. 00
It was further resolved that the bill of Carey, Boyle & Mullins,
covering services in connection with the transfer of plant of New
Philadelphia Wire & Nail Co., amounting to $300, was regarded as
too high and referred to Max Pam, gener^ counsel, to take up with a
view to securing a reduction.
The bill of S. S. Hulbert, Battle Creek, Mich., for $2, 197 was referred
to Messrs. Edenborn and Lambert with power.
October 31, 1899.
fleeting of executive committee held.
PURCHASE OF PIG IRON AND RODS.
Resolved, That the company purchase 100,000 tons of rods from the
Federal Steel Co. and 80,000 to 90,000 tons of pig iron at lowest
possible prices.
November 24, 1899.
Meeting of executive committee held.
]SIessrs. Lambert and Sehgman constituting a special committee.
Resolved, That the American Mining Co. purchase the property of
Witherbee, Sherman & Co., at Fort Henry, N. Y., at the contract
price of $1,500,000, provided title thereto is satisfactory to general
counsel.
Resolved, further. That this resolution be communicated to the board
of directors of the American Mining Co. for action thereon in accord-
ance therewith.
November 27, 1899.
Meeting of executive committee held.
Resolved, That our general sales agent be instructed to notify all
subordinates that under no circumstances shall the American Steel &
UNITED STATES STEEL OOEPOBATION. 4239
Wire Co. enter into agreements regarding division of territory or
maintenance of prices with any competitors; and if any such agree-
ments exist either, directly or indirectly, they are unauthorized and
must be canceled at once.
Mr. John Lambert, president, and Mr. WiQiam P. Palmer, general
manager, were present at the passage of the foregoing resolution,
and after its passage Mr. Lambert and Mr. Palmer withdrew.
December 1, 1899.
Meeting of executive committee held.
Resolution to purchase Neville Island property for $800,000.
Resolution to incorporate Pittsburg & Ohio VaUey Railway Co.,
which read in part as follows :
Whereas it is deemed to the interests of this company that a raihoad under the con-
trol of this company shall be built and operated upon the lands commonly known aa
Neville Island, situated in Pittsburgh, Pa., said road to be located on or near the
river bank, to completely encircle said island ; and
Whereas it is also deemed desirable, if possible, that said railroad so to be con-
structed shall be connected with and made available for the Schoenberger, Bankin,
Braddock, Southside, Twenty-sixth Street plants at Pittsburgh, and the Allegheny
furnace: Now, therefore, be it
Resolved, That the general manager and general counsel of this company be, and
they are hereby, instructed to forthwith proceed to incorporate a raUroad, to be known
as the Pittsburg & Ohio Valley Bailroad Co., with an authorized capital of $500,000,
for the piupose of constructing and ojserating said railroaii as aforesaid, and that the
treasurer of this company be, and he is hereby, instructed, at the request of the said
general manager and general counsel, to make such payments (not exceeding $100,000
at the present time) as may be required and as may be hereafter directed by the
executive committee upon account of any subscriptions to the capital stock of said
railroad to be incorporated as aforesaid, and that the shares of stock which may bo
issued on account of any such payments may be issued in the names of such persona
as trustees of this company as may be designated by the executive committee under
the advice of the general counsel.
December 20, 1899.
Meeting of executive committee held.
SLIDING-SCALE CONTRACT WITH CARNEGIE.
Resolved, That the sliding-scale contract with Carnegie Steel Co.
for billets, acquired from the Pittsburg Wire Co., with whom it
was originally made, and which contains a six-months withdrawal
clause, be left undisturbed for the present and no withdrawal notice
given, but that the question be taken up in June, 1900.
December 28, 1899.
Meeting of executive committee held.
A resolution was passed to accept the property of the Schoenberger
Steel Co. in fuU satisfaction of the interest of this company as stock-
holder ia that company, and counsel was authorized to petition for
the dissolution of the Schoenberger Co. The coal and coke proper-
ties were to be transferred to the American Coke Co.
A resolution was passed approving the purchase by the American
Coke Co. of 330 acres of coal lands, at $70 per acre, immediately
adjoining 2,000-acre tract in Green County, Pa., belonging to said
American Coke Co.
Action of counsel in rejecting the title to Witherbee Sherman &
Co.'s property for reasons stated was approved.
4240 united states steel corporation.
Jantjaet 27, 1900.
Meeting of executire committee held.
SALE OP CRAWFOEDSVILLE MILL PEOPEBTY.
Resolved, That the proper officials of the company be, and they
are hereby, authorized to sell the mill property of the company located
at Crawfordsville, Ind., and execute proper deeds of transfer on the
following basis: The price to be $12,000— $4,000 cash, $4,000 due
in one year, and $4,000 due in two years, with interest at 5 per cent.
Februaet 3, 1900.
Meeting of executive committee held.
The sale of the Louis\dlle warehouse property for $12,500 was
approved.
Maech 6, 1900.
Meeting of executive committee held.
The purchase of the Stegmiller property and iron-ore land adjoining
Preston mine on the Marquette Range for $35,000 was approved.
The sale of the Evanston (lU.) plant for $24,000 cash was approved.
Meeting of executive committee held.
DEFEEEED PIG lEON DELIVEEIES.
May 5, 1900.
Resolved, That the proposition of J. G. Butler, jr., representing
the Shenango Furnace Co., the Youngstown Steel Co., and the Brier
Hill Iron & Coal Co., to transfer the delivery of 24,000 tons of Besse-
mer pig iron from May and June delivery to July and December
(inclusive), 1900, delivery, be and the same is hereby accepted.
May 16, 1900.
Meeting of executive committee held.
SALE OF PIG lEO.N TO OAENEGIE.
Resolved, That Mr. Crane be, and he is hereby, instructed to meet
the Carnegie Steel Co. people as soon as possible and try to make a
sale of pig iron to them, which shall offset in part the payment of
the billets which we have coming from them under the sliaing-scale
contract, such quantity of pig iron not to exceed 30,000 tons,
Further resolved, That if Mr. Crane fails in so doing, we notify the
people from whom we have pig iron coming that we will take it on
our contracts at an agreed price per month, commencing, say, July
and running over the last half of the year.
May 17, 1900.
Meeting of executive committee held.
Present: William Edenbom, A. Clifford, William P. Palmer, John
Lambert, I. L. EUwood, members of the committee. There were
also present: Joseph Sellwood, C. A. Honecker, C. K. Winslow,
C. L. Miller, James Hopkins, A. S. Chisholm, C. S. Eoberts, and
J. S. Keefe.
UNITED STATES STEEL COEPOEATION. 4241
PRICE OF ORE.
Resolved, That ore purchased by us this season from the American
Mining Co. be paid for at cost plus 20 cents per ton.
Mat 22, 1900.
Meeting of executive committee held.
BILLET OONTKACT.
The sliding-scale bUlet contract with Carnegie Steel Co. was dis-
cussed, and Mr. Crane is directed to see that notice of withdrawal is
given prior to July 1.
Mat 24, 1900.
Meeting of executive committee held.
In accordance with resolution passed at meeting of May 16, Mr.
Crane reported as follows on his meeting with the Carnegie Steel Co.
people:
The American Steel & Wire Co. to deHver to the Carnegie Steel Co.
16,708 tons of chiU basic pig, made at Struthers furnace, at $20 per
gross ton, delivered at Homestead Steel Works, Munhall Station, Pa.,
Carnegie Steel Co.'s weights to govern settlements; terms of payment
to be contra account; delivery not exceeding 3,000 tons in May and
balance in June, 1900. Above purchase by the Carnegie Steel Co.
conditioned upon the American Steel & Wire Co. taking at the rate
of 100 to 150 tons per day, beginning May 21, 1900, the 8,565 tons of
rod billets still due under contract dated March 16, 1900, and giving
the Cameme Steel Co. shipping directions at once. The American
Steel & Wire Co. to take the 16,708 tons of rod billets due and to
become due them prior to July 1, 1900, under sHding-scale contract,
at a sufficient rate per day to complete shipment of the 16,708 tons by
July 1, 1900, and to give the Carnegie Steel Co. shipping instructions
at once. This transaction to be without prejudice to rights of the
Carnegie Steel Co. under the two above-mentioned contracts. On
motion, regularly made and seconded, it was resolved that the action
of Mj. Crane in making the above-mentioned agreement with the
Carnegie Steel Co. be, and the same is, approved.
Resolved, That Mr. Crane be, and he is, instructed to take up with
Joseph G. Butler, Jr., the matter of having deHveries deferred on iron
due us in April, May, and June under contracts with various furnace
Seople, with a view to postponing such deliveries until September,
•ctober, November, and December, 1900. Iron to be received dur-
ing these last four months of the year ia equal monthly quantities,
each furnace to receive its proportion each month of the total tonnage
due.
June 7, 1900.
Meeting of executive committee held.
Resolved, That Mr. Crane be, and he is, instructed to go to Pitts-
burgh as early as possible and take up with the Carnegie Steel Co. the
cancellation of about 486 tons of ferromanganese, also 14,000 tons of
biUets, for delivery prior to July 1, paying up to $5 a ton on the bUlets
for cancellation, but paying nothing on the ferromanganese.
4242 UNITED STATES STEEL COBPOEATION;
BILL FOK CANCELLATION, NATIONAL STEEL CO.
Resolved, That the bill of the National Steel Go. for $87,850, being
cancellation charge of $7 a ton on 12,550 tons of steel, to be paid
provided the number of tons check up as correct.
SETTLEMENT WITH LORAIN STEEL CO.
Resolved, That the biUets due from the Lorain Steel Co. be settled
for by giving the Lorain Steel Co. this company's note, dated about
June 10, due in five months from date, with interest for four months
at the rate of 5 per cent per annum.
SETTLEMENT WITH AMERICAN STEEL HOOP CO.
Resolved, That Mr. Crane be, and he is, instructed to write to the
American Steel Hoop Co., instructing them to pile the 4,234 tons of
iron due us for our account without charge, rendering us an invoice
of 30 days.
RODS FROM ILLINOIS STEEL CO.
Resolved, That Mr. Crane be instructed to formally advise the
Illinois Steel Co. to begin shipping us rods June 18, at the rate of 500
tons per day until further advised.
A letter from Mr. Crane to Mr. Palmer, dated May 29, was sub-
mitted, stating that the Carnegie Steel Co. had 53 carloads of billets
(1,388 tons) on contract, shipped April 12 and 13 and declined by this
company, which tonnage was not mcluded in the arrangement made
by Mr. Crane (see minutes executive committee meeting May 24,
1900) covering 16,708 tons due under sliding-scale contract; that the
Carnegie Steel Co. has agreed to increase the tonnage of basic pig iron
to 18,096 tons, under Mr. Crane's arrangement with them, to equal the
tonnage of billets due under the shding-scale contract.
Resolved, That the quantity (16,708 tons) mentioned in the minutes
of the executive committee May 24, 1900, be amended to 18,096.
September 13, 1900.
Meeting of executive committee held.
CARNEGIE SLIDING-SCALE CONTRACT.
Resolved, That, taking all circumstances into consideration, this
company would take the 22,000 tons of Bessemer biUets from the
Carnegie Steel Co. (this amount being due under the sliding-scale con-
tract between the Carnegie Steel Co. (Ltd.) and the Pittsburg Wire
Co., dated Mar. 23, 1896, for the period July to December, both
inclusive, 1900), paying $18 per ton for the 22,000 tons. This is to
be in full settlement of all demands under the above-mentioned
contract.
-iM
united states steel oorpoeation. 4243
September 19, 1900.
Meeting of executive committee held.
SLIDING-SCALE CONTKACT WITH CARNEGIE STEEL CO
Resolved, That Messrs. Edenbom, Gates, and Lambert form a com-
mittee to make settlement with the Carnegie Steel Co. for Bessemer
bUlets due under sliding-scale contract between the Carnegie Steel
Co. (Ltd.) and Pittsburg Wire Co., dated March 23, 1896, for the
period July to December, inclusive, 1900.
September 26, 1900.
Meeting of executive committee held.
J. S. Keefe to confer with A. B. Wolvin and another, regarding
acquiring control of the American Steamship Co. of New Jersey, in
order to enable this company to control its own ore-transporting
facilities.
October 23, 1900.
Meeting of executive committee held.
Edgar Zinc Co. stock to be increased from $500,000 to $1,000,000.
DISPUTE RE BILLETS WITH TENNESSEE COAL & IRON CO.
Resolved, That the dispute between this company and the Ten-
nessee Coal & Iron Co. regarding billets be referred to the chairman,
president, and general counsel, with power to act.
CAPE BRETON.
Resolved, That a committee consisting of Messrs. Clifford, Palmer,
and Gates be and is appointed to take up with the Dominion Iron
& Steel Co. (Ltd.) the question of moving our Beaver Falls works
to Cape Breton, Canada, to investigate same and report to the
executive committee.
November 15, 1900.
Meeting of executive committee held.
ALABAMA STEEL & WIRE CO.
Edenborn, Gates, and Lambert were appointed to take, up the
matter of commencing litigation against the Alabama Steel & Wire
Co. concerning their infringement of this company's patent rights.
December 10, 1900.
Meeting of executive committee held.
Thereupon came up a discussion of the question of acquiring old-
range or new-range low phosphorus Bessemer mines, and it was
stated that Mr. Edenborn had entered into an auction contract for
the acquisition and purchase of the Anticokan mines, as president
of the American Minmg Co.
Resolved, That it be recommended to the American Mining Co. that
the action of Mr. Edenborn, as its president, in the execution of said
auction contract be approved and ratified, and it be further recom-
mended to the American Mining Co. that at the earliest possible
moment they acquire an old-range low phosphorus Bessemer mine,
preferably of hard ore.
4244 united states steel. coepokation.
December 20, 1900.
Meeting of executive committee held.
Mr. Gates was requested to take up on behalf of the company the
question of furnishing material for tin plate with J. J. Mitchell; also
to take up with Mr. Converse, of the National Tube Co., the ques-
tion of their buying skelp from us, and questions in connection with
same.
January 7, 1901.
Meeting of executive committee held.
Resolvm, That J. W. Gates be, and he is, authorized to take up
with American Steel Hoop Co. and the National Tube Co. matters
pertaining to the relations between those companies and this com-
pany.
February 5, 1901.
Meeting of executive committee held.
LEASE OF CHISHOLM MINE, $70,000.
Resolved, That whereas the American Mining Co. has an oppor-
tunity to lease from the Chisholm Mining Co. the Chishohn mine,
adjoining Clark mine, for $70,000 bonus and 35 cents per ton royalty,
25 cents of the royalty going to the freeholders and 10 cents to the
Chisholm Iron Co., minimum output beginning next year 100,000
tons annually, the American Mining Co. was recommended to lease
this mine on these terms.
February 6, 1901.
Meeting of executive committee held.
PURCHASE 75,000 TONS. SPARTA ORE.
Hesolved, That the president be, and he is, authorized to close for
75,000 tons of Sparta ore, guaranteed not to exceed 0.025 in phos-
phorus, price $2.85 Lake Ene ports.
February 19, 1901.
Meeting of executive committee held.
Resolved, That the purchase of 20,000 tons of steel bOlets from the
Maryland Steel Co. at $20.50 per ton f. o. b. AUentown, Pa., and at
$21.50 per ton f. o. b. cars Worcester, Mass., shipment not less than
5,000 tons per month, beginning not later than March 1, be, and the
same is hereby, authorized.
Resolved, That the purchase for prompt shipment of 5,000 tons of
steel from the Lorain Steel- Co. at $18.75 per ton f. o. b. cars Cleve-
land be, and the same is hereby, approved.
March 11, 1901.
Meeting of executive committee held.
On account of difficulty in introducing woven-wire fence into for-
eign countries, arrangement for manufacture in foreim countries was
siibmitted to Edenbom, Lambert, and Palmer. Purchased from
Lorain Steel Co. 5,000 tons billets and 6,000 tons pig iron.
UNITED STATES STEEL CORPOEATION. 4245
MiNXJTES OF BOAKD OF DIRECTORS FrOM JaNTJART 17, 1899, TO
June 9, 1911, as Extracted.
January 17, 1899.
Meeting of board of directors held.
F. p. VOORHES'S PROPOSITION FOR SALE OF PLANTS.
Mr. Voorhes thereupon appeared before the board and stated in
substance that he owned, controlled, or .had duly contracted to acquire
certain manufacturing plants and properties, comprising plants of
the Oliver Wire Co., the Consohdated Barb Wire Co., the Shenango
Valley Steel Co., the Cuicinnati Barb Wire Fence Co., and the New-
burg Wire & Nail Co., together with certain other properties,
now or lately belonging to W. A. Laidlaw, the Allegheny Furnace
Co., and the Oliver & Snyder Steel Co., and also 3,903 shares of the
capital stock of the Ceveland Rolling Mill Co., of the par value of
$1,000 each, 1,000 shares being the whole of the capital stock of the
Worcester Wire Co., a majority of the shares of the capital stock
of the Washburn & Moen Manufacturing Co., 3,600 shares, being
the whole of the capital stock of the Pittsburg Wire Co., and 203,015
shares of the preferred and common stock of the American Steel
& Wire Co. (of Illinois), which he was willing to sell to this company,
provided suitable terms could be arranged.
January 18, 1899.
Meeting of board of directors held 12.30 p. m., 40 Wall Street,
New York City.
A resolution was passed to purchase the properties and stock
offered by Mr. Voorhes for the consideration of 249,000 shares of the
capital stock of the company (preferred stock) and 471,000 shares
of the common stock of the company and $3,500,000 in cash, and that
a subscription of the said Voorhes for 130,000 shares of the pre-
ferred capital stock of the company be accepted.
January 21, 1899.
Meeting of board of directors held.
Resolved, That the supplemental agreement between this com-
pany and Mr. Voorhes for the purchase from him of 18,780 shares
of the preferred capital stock of the American Steel & Wire Co., and
18,205 shares of the common capital stock of said company, of 97
shares of the capital stock of the Cleveland Kolling MiU, and of 1,293
shares of the capital stock of the Washburn & Moen Manufacturing
Co. be approved.
January 25, 1899.
Meeting of board of directors held.
A resolution was passed modifying the agreement with Voorhes
so that this compa,ny could acquire all the shares of stock of the
Oliver Wire Co., in place of the property and plant.
4246 UNITED STATES STEEL COBPOKATION.
INDIANA WIRE FENCE CO. PURCHASED.
The plant of the Indiana Wire Fence Co. and the stock and sup-
phes, etc., are to be purchased for $115,000 in the name of Frederick
r. Voorhes, upon the execution by him of a declaration of trust
in favor of this company.
February 7, 1899.
Meeting of board of directors held.
PURCHASE FROM VOORHES OF PUGET SOUND AND PORTAGE IRON CO.
PROPERTIES
It was then stated to the board that Mr. Frederick P. Voorhes had
contracted for the purchase of a large majority of the stock of the
Puget Sound Wire Nail & Steel Co., and also for the purchase of the
mill properties and appurtenances of the Portage Iron Co. (Ltd.),
and that he oflFered to sell the same to this company. The matter
was referred to the executive committee, and the officers were
authorized to advance Mr. Voorhes on account of such purchases
not exceeding $200,000.
February 28, 1899.
Meeting of board of directors held.
Resolved, That the resolution passed at the executive committee
meeting of February, 16, 1899, authorizing the purchase by this
company of certain zinc properties be, and the same is hereby, amended
so as to provide that this company purchase and acquire from the
Edgar Zinc Co., 80 per cent of its capital stock, which said capital
stock shall be at the time of the consummation of the purchase
thereof by this company in amount and value not less than $500,000,
and fuUy paid up, and which said Edgar Zinc Co. shall upon the
consummation of the purchase by this company have duly and
properly purchased, acquired and own aU the zmc properties of S. C.
Edgar, known as the Carondelet Zinc Works, situated in South St.
Louis, Mo., and the property of the Glendale Zinc Co., situated in
South St. Louis, Mo., and adjoining the property of the Carondelet
Zinc Works.
APPROVAL CLARKE AND SAUNTRY ORE MINE PURCHASE.
The chairman stated that the Clarke & Sauntry ore property
Eurchase had been closed and that they were about to pay the
alance of the purchase money. He stated that there were about
40,000,000 to 45,000,000 tons in the tract, and that is was a fee
purchase, there being no royalty. He further stated that the ore
could be mined and put on cars at 15 cents per ton; that the entire
purchase price of said property is $700,000. The purchase was
ratified.
The executive committee was empowered to act upon the propo-
sition of Mr. Voorhes to seU the plants and property of the American
Steel & Wire Co. of lUinois, which is substantially set forth on the
minutes of the executive committee.
united states steel oorpoeatiok. 4247
March 13, 1899.
Meeting of board of directors held.
Purchase of the Schoenberger Steel Co. for $3,600,000 was recom-
mended.
Mr. Voorhes's agreement for the pm-chase of the Puget Sound
Wire Nail & Steel Co. for $436,304.59 was approved.
The contract with Mr. Voorhes in reference to the acquisition of
the plants of the American Steel & Wire Co. of Illiaois and the pay-
ment to the said company therefor was approved. (See executive
committee minutes.)
DISSOLUTION OF AMERICAN STEEL & WIRE CO. OF ILLINOIS.
Resolved further, That the proper officers of this company, as the
beneficial owner of shares of stock of said American Steel & Wire
Co. of Illinois, be authorized and empowered to agree and consent
that the corporate enterprise of said American Steel & Wire Co. of
Ilfinois be abandoned, and that the charter, franchise, and corporate
name be surrendered, and that the corporation be dissolved.
Mr. P. W. Moen thereupon stated to the board that the Washburn
& Moen Manufacturing Co. had conveyed all its assets and property
to this company on March 11, 1899, for the consideration of $8,000,000
and the assumption of all existing debts and liabifities of said com-
pany; that the directors of said company had declared a distributive
dividend of $200 per share, and that this company had received by
reason of such dividend the sum of $7,983,600 upon the 39,918 shares
of the stock of which it is the beneficial owner. Mr. Moen further
stated that this company had taken possession of the said assets and
property so transferred to this company.
Mr. Moen thereupon stated to the board that the Worcester Wire
Co. had conveyed all its assets and property to this company on
March 11, 1899, for the consideration of $400,000 and the assumption
of aU existing debts and liabifities of said company; that the directors
of said company had declared a distributive dividend of $400 per
share, and that this company had received by reason of such dividend
the sum of $400,000 upon the 1,000 shares of stock of which it is the
beneficial owner.
June 23, 1899.
Meeting of board of directors held.
The American Steel Wire Co. of Illinois declared a distributive
dividend of $106 per share, and "the officers of this company had
by reason of such dividend acknowledged the receipt of the sum of
$25,347,780 upon the 119,208 shares of preferred stock and 119,922
shares of common stock of the said American Steel & Wire Co. of
Illinois, of which this company is the beneficial owner."
transfer OF NEWBURG (N. Y.) PLANT TO THIS COMPANY.
The secretary further stated that Frederick P. Voorhes had con-
veyed to this company aU the assets and property formally of the
Newburg Wire & Nail Co. by deed dated March 28, 1899, executed
between Eoswell C. Coleman, referee, to this company, and had
further procured an assignment to this company of all the right,
4248 UNITED STATES STEEL COKPORA.TION.
title, and interest of one BQlton as receiver of the Kilmer Manufac-
turing Co. in and to letters patent 367,085, 479,995, and 519,663,
subject to any claim thereon of the New York Security & Trust Co.,
and had further assigned to this company all his right in and to all
outstanding second-mortgage bonds of the Newburg company,
amoimting to $40,000, on which $38,550 has been paid, and in and
to $78,000 of the outstandtag third-mortgage bonds of the said com-
pany, and in and to $270,495, par value of the $335,000, the total
outstanding capital stock of the same company, and also in and to
a judgment against the said company for $14,205.75.
PENNSYLVANIA & LAKE ERIE DOCK CO. SHARES PUT IN NAME OF
W. H. ROWE, TRUSTEE.
Counsel thereupon stated to the board that the company owned
1,273 shares of the capital stock of the Pennsylvania & Lake Erie
Dock Co., of which 1,000 shares stood in the name of the Oliver Iron
& Steel Co. and the balance in the name of the Schoenberger Steel
Co., and suggested that the same be transferred into the name of
some officer or nominee of the company. On motion, regularly made
and seconded, it was duly resolved that the shares of the Pennsyl-
vania & Lake Erie Dock Co. owned by this company be put in the
name of W. H. Rowe as trustee, and that counsel be instructed to
procure from Mr. Rowe a declaration of trust in respect of such stock;
And resolved further, That the stocks in mining and other companies
owned by tins company be placed of record in the name of some
trustees and that declaration of trust in respect of such stock be
procured from such trustees.
DESERT LAKE, GREENWOOD COUNTY, WOODSON COUNTY, REYNOLDS
COUNTY, PUT IN NAME OF L. M. GRANT, TRUSTEE.
Resolved, That the title to the Desert Lake lands and other prop-
erties in Canada, the Greenwood County and Woodson County
(Kans.) lands, and the Reynolds County (Mo.) lands, formerly belong-
ing to the Cleveland RoUmg Mill Co., be placed in the name of L. M.
Grant, and that counsel be instructed to procure from him a decla-
ration of trust to this company in respect of such lands.
Mr. George T. Oliver thereupon stated to the board that the OUver
Wire Co. had conveyed all its assets and property to this company
on March 31, 1899, for the consideration of $1,000,000 and the
assumption of all existing debts and Habilities of said company; that
the directors of said company have declared a distributive dividend
of $100 per share, and that this company had received, by reason of
such dividend, the sum of $1,000,000 upon the shares of stock of
which it is the beneficial owner. Mr. Oliver fiu-ther stated that this
company had taken possession of the said assets and property so
transferred to this company by the said Ohver Wire Co.
Mr. George T. Oliver further stated that the Pittsburgh Wire Co.
had conveyed all its assets and property to this company on March
31, 1899, for the consideration of $950,000, and the assumption of
the existing debts and liabilities of said company; that the directors
of said company had declared a distributive dividend of $263,888 per
UNITED STATES STEEL COEPOBATION. 4249
share, and that this company had received by reason of such dividend
the sum of $950,000 upon the shares of stock of which it is the benefi-
cial owner. Mr. OHver further stated that this company had taken
possession of the said assets and property so transferred to this com-
pany by the said Pittsburgh Wire Co.
Purcnase of Allegheny Furnace Co. for consideration of $400,000
and assumption of debts.
That the directors of said company had declared a distributive
dividend of $400 per share, and that this company had received by-
reason of such dividend the sum of $400,000 upon the shares of stock
of which it is the beneficial owner.
Mr. WUham P. Palmer thereupon stated to the board that the
Cleveland Rolling Mill Co., since the conveyance of its assets and
property to this company on March 6, 1899, had declared a distribu-
tive dividend of $1,250 per share, and that this company had received
by reason of such dividend the sum of $5,000,000 upon tJie shares of
stock of which it is the beneficial owner.
June 24, 1899.
Meeting of board of directors held.
RANGE ORE.
The executive committee, to whom was referred at the last meeting
the question of procuring old-range ore sufficient to supply the wants
of this company and to report its recommendation thereon, thereupon
reported that they were unable as yet to suggest to the company any
source of supply of old-range ore, as there had been a great demand
for such ore and nearly all the visible supply had been secured by other
companies, and recommended that the executive committee be
authorized to look for an old-range property and to purchase the
same and to secure the necessary supply of such ore.
Resolved, That the executive committee investigate further and
purchase any suitable old-range, property.
September 18, 1899.
Meeting of board of directors held.
Whereas the board of directors at the last meeting referred the
question of the acquisition of old-range ores to the executive com-
mittee with the power to act; and whereas the executive committee
has authorized and caused the American Mining Co. to enter into a
contract with the Frankhn Mining Co. for the assignment by said
Franklin Mining Co. to the American Mining Co. of certain leases
now owned by it and to be acquired and upon property known as the
Atlantic mine ; and whereas it is to the interest or this company that
the contract for such leases of the Atlantic mine be consummated;
Therefore be it
Resolved, That the action of the executive committee be and the
same in all respects is hereby ratified.
November 8-9, 1899.
Meeting of board of directors held.
4250 UNITED STATES STEEL CORPORATION.
CROWN POINT PURCHASE CONFIRMED.
Resolved, That the purchase on September 7, 1899, of the Crown
Point Iron Co.'s property by F. E. Patterson, as trustee for this
company, at referee's sale in foreclosure proceedings for the sum of
$45,000 and unpaid taxes not exceeding $5,000 is hereby approved
and confirmed.
The chairman caUed attention to the contract between the Schoen-
berger Steel Co. and the Lake Superior Consolidated Iron Mines, in
which this company is interested as owner of the capital stock of the
Schoenberger Steel Co., but which has been the subject of controversy,
and stated that in conjunction with the president of this company
he had substantially agreed to a modification of the contract and
settlement of the points in controversy with the ofl&cers of the con-
solidated mines, and asked for a ratification by the board of the settle-
ments as agreed upon.
Resolved, That the action of Messrs. Gates & Lambert in settling
the controversy between the Schoenberger Steel Co. and the Lake
Superior Consolidated Iron Mines by a cancellation of the present
contract and the execution of a new contract between this company
and the Consolidated Iron Mines, on exactly the same basis as the
present contract, except that the term is for four years, commencing
with the year 1900, be and the same is hereby ratified, approved, and
confirmed, etc.
November 8-9, 1899.
Meeting of board of directors held.
A resolution was passed for the transfer of all property of the
Schoenberger Co. to this company and for the dissolution of the
Schoenberger Co.
January 29, 1900.
fleeting of board of directors held.
Purchase by American Coke Co. of 330 acres at $70 per acre,
adjoining 2,000-acre tract in Greene. County, Pa., of said American
Coke Co., approved.
February 20, 1900.
Meeting of board of directors held.
The minutes of the meetings of the executive committee on Feb-
ruary 1, 2, 3, and 19 were presented and, on motion regularly mjide
and seconded, it was resolved that the reading of the minutes be de-
ferred, and that they stand approved.
Note. — There wag inserted in handwriting opposite "19" the following: "These
minutes were cut out of executive book, being canceled by action of that committee
of March 5, 1900."
It wiU be found upon examination of the minutes of the executive committee that
there are no minutes between those of February 3, 1900, and the minutes of March 5,
1900. The minutes of the meeting of March 5, 1900, do not refer to any cancellation
of minutes of February 19, as above stated.
FEDERAL STEEL CO. ILLINOIS STEEL CO.
Thereupon a committee composed of Messrs. E. H. Garv, H. H.
Rogers, and Robert Bacon, representing the Illinois Steel Co., were
introduced and a discussion ensued regarding certain issues between
UNITED STATES STEEL COKPOKATION. 4251
the Illinois Steel Co. and this company, regarding which it was on
motion regularly made and seconded duly resolved that the executive
committee of this company be authorized and directed to take up and
settle with the Ilhnois Steel Cp., or its representatives, the questions
at issue between the two companies, and execute and deliver to the
Illinois Steel Co. a letter in the f oUomng f orm :
New York, April 20, 1900. •
Illinois Steel Co., Chicago, III.
Gentlemen: At the present time there are in existence certain contracts between
you and the American Steel & Wire Co. for the sale and purchase of a large quantity
of rods and a large quantity of billets upon which certain deliveries have been made
and on account of which a large tonnage is still undelivered.
For the reason that our business interests will not allow us to continue to receive
rods and billets on account of these contracts as therein provided without inconven-
ience to our company we request you to cease making shipments and deliveries for the
present. We do not ask you to make any agreement for a postponement of deliveries
nor to waive in any respect your right to make deliveries and collect the proceeds in
accordance with the contracts in force. If you make any postponements of deliveries
it is understood they will be made without prejudice to yotir right to enforce the con-
tracts and that the same shall not constitute m any respect a waiver on your part. You
shall have the ri^ht at any time you see fit to make deliveries and enforce the contracts
the same as if this request had not been made and no deliveries had been postponed.
We agree that if deliveries are postponed and by reason thereof payments are not
made on account of the contracts as they otherwise would have been made, you shall
be paid interest at the rate of 5 per cent on the deferred pipments. We agree further
that we will take the rods and billets on account of these contracts and use the same at
our seven western mills in preference to taking and using the rods and billets from our
own mills.
Yours, ymbf, Ameeican Steel & Wire Co.,
(Signed) J. W. Gates, Chairman.
May 7, 1900.
Meeting of board of directors held.
Whereas the question of closing heretofore of 12 miUs of this com-
pany is under consideration of the board of directors, and whereas the
conditions and causes leading to that action have been fully discussed
and are now understood, and whereas it has appeared that the action
in closing such mills was the result of a conference between the follow-
ing named directors : J. W. Gates, John Lambert, William Edenborn,
John H. Drake, A. CUfford, James Hopkins, I. L. EUwood, and Will-
iam P. Palmer: Therefore be it
Resolved, That the action of said directors in closing the mills be,
and the same is hereby, in all respects approved and confirmed.
Henry Spligman and Frederick Strauss resigned as directors.
May 9, 1900.
fleeting of board of directors held.
Randal Morgan and H. Sielcken elected directors.
EXPORT NAIL ARRANGEMENT, J. W. GATES AUTHORIZED TO JEAKE.
Resolved, That Mr. J. W. Gates be authorized to make any arrange-
ment, which in his judgment seems to be for the best interests of this
company with the European wire nail makers looking to a division
of the tonnage of the export wire nail trade of the world.
Note. — There are no minutes of meetings between July 3, 1900, and September 4,
>1900.
31572— No. 53, pt. 2—12 33
4252 united states steel coepobation.
October 29, 1900.
Meeting of board of directors held.
Thereupon, Mr. Gates on behalf of the committee appointed by the
executive committee September 19, reported progress of the negotia-
tions for the settlement with the Carnegie Steel Co. for Bessemer bil-
lets due for the period July-December (both inclusive), 1900, under
a sliding scale contract between the Carnegie Steel Co. (Ltd.), and the
Pittsburgh Wire Co., dated March 23, 1896.
Thereupon the question of the acquisition by this company of the
capital stock or property or both of the American Steamship Co. was
taken up and an exhaustive discussion ensued, after which, on motion
regularly made and seconded, the following resolutions were unani-
mously adopted:
Whereas the American Steamship Co., a corporation organized under the laws of the
State of New Jersey, is the owner of a large number of steam vessels, a list of which
is as follows (list will be supplied if needed), which said vessels ^re now being
operated by said steamship company on the Great Lakes and are adapted for and have
been engaged in the business of transporting ore and other products, and it has been
deemed desirable and necessary for and to the interests of this company that this
company shall acquire and conteol a line of steam vessels carrying on and conducting
its business; and
Whereas the vessels of the American Steamship Co. have been appraised at
$5,630,000; and jfL
Whereas the American Steamship Co. has enjoyed profits more than sufficient to pay
interest and charges upon the sum of $5,630,000; and
Whereas Thomas P. Adler, on behalf of this company, made a proposition to the
said American Steamship Co. to cause all the property and assets and capital stock of
the said American Steamship Co., subject only to the payment of its debts, to be pur-
chased by a corporation to be organized for that purpose for the sum of $5,630,000 to be
paid in first-mortgage gold "bonds issued by said purchasing corporation to be organized,
bearing interest at Qie rate of 5 per cent per annum, said bonds to be secured by a first
mortgage upon the property so acquired and to be guaranteed by this company, and
this company in consideration receiving, owning, and controlling the entire capital
stock of the said purchasing corporation; and
Whereas said American Steamship Co. , at a meeting of its stockholders, duly accepted
such proposition; and
Whereas it is now deemed desirable and advisable that this company proceed to
consummate the purchase and ownership of the property of said American Steamship
Co.; and
Whereas the American Steamship Co., of West Vii^inia, has been or is about to be
formed to purchase and acquire the legal title to the said property of the said American
Steamship Co. , of New Jersey, with an issued capital of $100,000: Now, therefore, be it
Resolved, That this company, by its officers, be, and they are hereby, authorized and
directed to consummate and conclude the purchase of the control and ownership of
said property of the American Steamship Co.; be it further
Resolved, That upon all the property of the American Steamship Co., of New Jersey,
having been duly and legally transferred to and vested in the American Steamship
Co., of West Virginia, and there having been transferred and delivered to this company
the ownership and entire capital stock of the said American Steamship Co., of West
Virginia, fully paid and nonassessable (excepting only shares issued to qualify the
directors of said corporation), that thereupon this company, by its president or any
of its vice presidents, its secretary or any of its assistant secretaries, enter into and exe-
cute an agreement or instrument for and on behalf and in the name of this company
guaranteeing the payment of the principal and interest of said bonds of said purchasing
corooration so issued in payment for said property, the amount thereof to be $5,630,000
and payable in the manner above set forth and also guaranteeing the full performance
by the American Steamship Co., of West Virginia, of all the terms and conditions of
said mortgage, such bonds so containing said guarantee as aforesaid to be delivered
upon the transfer to this company or its nominees of the entire capital stock of said
American Steamship Co., of New Jersey; be it further
Resolved, That lie officers of this company be, and they are hereby, authorized and
directed to enter into and execute any and all necessary and proper agreements and
instruments to efiectuate and carry out the purposes of this resolution; be it further
UNITED STATES STEEL OORPOEATIOlSr. 4253
Resolved, That the act of Thomas P. Adler in making the above proposition to the
said the AJnerican Steamship Co. be, and is, in all respects ratified, approved, and
confirmed; be it further
Resolved, That a committee consisting of Messrs. Randal Morgan, LesUe P. Ward,
Herman Sielcken, and Max Pam, general counsel, be appointed to consider and sub-
mit to the next meeting of the board of directors the form of bond and mortgage to be
made and recommended.
NOVEMBEK 19, 1900.
Meeting of board of directors held.
Thereupon the president, on behalf of the committee appointed by
the executive committee September 19, reported progress of the
negotiations for settlement with the Carnegie Steel Co. (Ltd.) for
Bessemer biUets, due for the period July-December (both inclusive),
1900, under the sUding-scale contract between the Carnegie Steel Co.
(Ltd.) and the Pittsburg Wire Co., dated March 23, 1896. The
committee was continued.
December 10, 1900.
Meeting of board of directors held.
Thereupon the chairman submitted a letter received from James
Hillhouse, dated November 26, 1900, reading as follows:
47 Cedab Stbeet,
New York, November S6, 1900.
J. W. Gates, Esq.,
Re the American Steel & Wire Co., of New Jersey.
Dear Sir: In behalf of my wife, the owner and holder of 100 shares of the preferred
stock in this company, allow me to draw your attention to foiu: clippings from recent
issues of highly reputable and reliable New York papers, pasted upon a subsequent
page of this letter, viz: The Commercial Advertiser of the 12th instant, the Journal of
Commerce and Commercial Bulletin of the 13th instant, the Iron Age of the 15th
intant, and the Wall Street Journal (evening edition) of the 20th instant, relating to
the alleged recent sale of the stock of the American Steamship Co. to the American
Steel & Wire Co.
My wife bought her stock on March 4, 1899, on the New York Stock Exchange,
through Messrs. Cuyler, Morgan & Co., of No. 44 Pine Street, New York City, at 1021—
the current quotation when bought — and took the certificate in her name, Hildegarde
S. Hillhouse, on April 21, 1899. The certificate is A4409.
From certified copies of the amended certificate of incorporation before payment
of capital stock of the American Steamship Co. for the year June 30, 1899, the two
reports of the election of its directors and officers filed respectively June 29, 1899,
and May 8, 1890, and the certificate of increase in its capital stock from $2,500,000 to
$3,000,000, filed December 23, 1899 — all lately procured from the secretary of state,
Trenton, N. J. — the following facts appear in regard to that company:
March 31, 1899, certificate of incorporation filed in office of secretary of state, Trenton,
N. J. (authorized capital $1,000,000).
June 20, 1899, amended certificate of incorporation filed in same office increafling
authorized capital from $1,000,000 to $2,500,000, shares $100 each. Commenced
business with $50,000.
December 23, 1899, certificate of increase of capital stock filed in same office increas-
ing capital stock from $2,500,000 to $3,000,000.
May 1, 1900, but up to this date "the amount actually issued and outstanding is
$2,700,000."
4254
UXITED STATES STEEL COKPOKATION.
The American Steamship Co. (Incorporated
Mar. 31, 1899.)
May 1,1900..
T. P. Alder
F. E. Patterson
Max Pam
J. W. Gates, director, and as early as Dec. 19,
1899, president.
I. L. Ellwood, director
John Lambert, director and second vice
president.
William Edenbom, director, first vice presi-
dent.
S. H. Chisbolm
A. Clifford, treasurer
James Hopkins
C.S. Roberts
W. P. Palmer, director
F. L. Watson, assistant treasurer
Not being a stockholder in the American
Steamship Co. I have no access to its stock
ledger; I am therefore unable to assert what
were the holdings ol the various share-
holders at the time of the transaction in
question. The Iron Trade Review, of
Cleveland, Ohio, on the 15th inst., however,
states that "the entire capital stock of the
American Steamship Co. has been owned
by the inside men of the steel and wire
organization."
Interest
versus
duty;
number of
shares Nov.
22, 1S99.
17
35
S7
3,107
1,398
1,098
1,650
87
305
174
867
The American Steel & Wire Co. of N. J. In-
corporated Jan. 13, 1899. Amended certifi-
cate of incorporation filed Apr. 26, 1900.
Relation to, on Nov. 19, 1900. Supposed ap-
proximate date of transaction in question.
Assistant treasurer.
Assistant secretary.
General counsel.
Director and member of executive committee.
Director, member executive committee, and
second vice president.
Director and member executive committee.
Director, chairman execiitive committee, and
first vice president.
Director and fourth vice president.
Director, member of executive committee, and
chairman of committee from May 10, If 00.
Director.
Secretary.
Director and president from May 10, 1900.
Treasurer from May 10, 1900.
The above being a majority of the directors,
five-sixths of the execuhve committee of
A. S. & W. Co. (Poor's R. K. Manual, 1900,
pubUshed on or about Oct. 1, 1900, the
Chronicle, of New York, of May 12, 1900, voi.
70, p. 948). Without taking space to point
out the exact relations from the organization
of the company prior to the present time, all
of the above directors have been such at
least from Jan. 28, 1899, except Mr. Clif-
ford, who early took the place of Frederick
P. Voorhes (the Chronioie of New York of
Jan. 28, 1899, vol. 68, p. 185).
Assuming the substantial accuracy of the clippings above specified, Mrs. Hillhouse
wishes to express her dissent from this sale and takes this early opportunity of so
doing.
A court of equity views a contract between corporations having common directors
or officers with suspicion and jealousy; and if the contract be unfair and oppressive
to the minority stockholders will set aside the transaction and compel those occupy-
ing a judiciary (fiduciary) relation to make restitution. (Wardel v. Union Pacific R. K.,
103 U. S., 651; McGourkey v. Toledo & Ohio Central R. R., 146 U. S., 536; Twin
Lick Oil Co. 1). Marburg 91 U. S., 587; Flynnr. Brooklyn City R. Co., 158 N. Y., 493;
the De Neufville the N. Y. & Northern Ry., 81 Fed., 10, at 12-13; Higgins v. Lansingh,
154 111., 301, at 359-274 et passin.)
With my present lights our case appears to fall clearly within this rule.
Quite possibly the gentlemen occupying the dual character indicated in the Jore-
goiog table take it for granted that no American Steel & Wire shareholder lyould
interpose an objection to the transaction in question, the transaction holding good in
the absence of such objection. But we do very vigorously object.
It seems to be obvious that Mrs. Hillhouse has a strong equity in the fact that not
only was she a shareholder at the time of the transaction of which she complains, but
she bought her stock prior to the very foundation of the American Steamship Co.
She gave 102J for 100 shares American Steel & Wire Co. preferred, and though willing
to retire as a shareholder without loss, she does not feel disposed to submit to such a
sacrifice as a sale at the current market quotation would involve, and therefore is
obliged to adopt this course.
You may take no more notice of this letter than of my friendly letter to you of
March 31, 1900, re J. Slater Lewis's book on the commercial organization of factories,
or you may say ,"Goaheadandfile your bill in equity if you like " ; if so , as a foundation
for subsequent action on our part, it will be necessary for us without undue delay to
make a formal request of the board of directors of the American Steel & Wire Co. of
New Jersey to proceed to \-indicate the rights of that corporation in the premises,
incongruous as such a request may appear. (Flynn v. Brooklyn City R. R., supra;
the Neufville v. N. Y. & Northern Ry., supra.)
The cause of action being derivative through the injured corporation, the fruits of a
successful suit belong not to the complaining stockholder but to the corporation, and,
UNITED STATES STEEL OOBPOEATION. 4255
consequently, it would be wholly inequitable to expect us unsupported to rush into a
court of equity assuming that the American Steel & Wire Co. of New Jersey refuses or
unreasonably neglects to bring its suit in equity for the relief indicated.
Fortunately, the stock ledger of the steel and wire company will enable us to ascer-
tain the names, addresses, and holdings of the entire body of stockholders, and it
would be very disappointing indeed if a meritorious suit brought by a stockholder for
herself and others similarly situated should not find many other shareholders willing to
cooperate and contribute to the expense of its prosecution.
It rests very much with you to say whether I shall be compelled to fall back upon
such a method of procedure.
You may recall that a year ago I was put to considerable inconvenience in finally
procuring what I was entitled to as a matter of clear legal right, viz, a copy of the
by-laws of the American Steel & Wire Co. of New Jersey, as amended. I should be
glad to be spared a task very much greater than that.
Therefore we have spoken to no one in regard to this matter. Of course, if we were
cooperating with other shareholders, they, too, would necessarily be taken into account.
(Farmers' Loan & Trust Co. v. Chicago & R. Co., 163 U. S., 31, at 44.)
The four clippings already specified will be found on the next page and form a con-
stituent part of this letter. I will thank you for an early answer.
Yours, truly, '
James Hillhouse.
John W. Gates, Esq.,
The Rookery, Chicago, III.
The following clippings were pasted on page 261 at the foot of the
ropy of the above letter:
[From the Journal of Commerce & Commercial Bulletin of November 13, 1900:]
ANOTHER STEEL & WIRE DEAL — APPARENTLY NOT ALTOGETHER TO ADVANTAGE OF
THE COMPANY — PAYS $175 FOR AMERICAN STEAMSHIP CO. STOCK, PART OF WHICH
COST SELLERS $125 — GUARANTEES A BOND ISSUE IN LIEU OF CASH — STEAMSHIP
COMPANY STOCKHOLDERS GET 35 PER CENT DIVIDEND BEFORE SELLING.
There appear to be several decidedly interesting details connected with the recent
sale of the stock of the American Steamship Co. to the American StSel & Wire Co., and
it seems that the stockholders of the steamship company, of Which John W. Gates,
formet chairman of the steel and wire company, is said to be the largest, have much
the best end of the deal. The facts in the matter are understood to be as follows: The
American Steamship Co. was incorporated early in 18991 under New Jersey laws with a
capital of $1,000,000. The stock of the company was subsequently purchased, so it is
said, by John W. Gates and some of his associates at $125 a share, the purchasers thus
getting title to five steamers of the company. Subsequently, more siejrners were
added to the company's fleet, but as the capital of the company was increased to
$3,000,000, it is not unfair to assume that there was not a compensating increase in the
value of the individual shares.
The sale to the American Steel & Wire Co. was made on the basis of $175 per share,
or for $5,250,000 in all. Before completii^ this deal, however, the American Steamship
Co., it is said on good authority, declared a dividend of 30 per cent. The apparent
profit to the sellers in this deal therefore is as follows:
$50 per share on 30,000 shares $1, 500, 000
.$30 per share dividend on 30,000 shares 900, 000
Total 2, 400, 000
^ATiether there was an additional profit on the $2,000,000 of new stock and whether
that stock is taken at par also meant a profit to its purchasers of points on which no
intimation was obtained.
A peculiar feature of the deal is that the sale, instead of being for cash, is on the
following basis:
The American Steamship Co. is to issue bonds to pay for the stock purchased, these
bonds being guaranteed by the American Steel & Wire Co. These bonds it is stated
bear 5 per cent interest. It is understood that the sellers intimated to the steel and
wire company that these bonds might be paid for out of the earnings of the steamship
company. On the basis of 30 per cent dividends this would not seem an impossibility,
but this appears a rather sanguine basis for calculation, and the fact remains that
4256 UNITED STATES STEEL COEPOBATION.
whether the steamship company's profits be large or small the American Steel & Wire
Co. is liable for the payment of the new basis.
In view of the fact that shipyards on the Lakes are well filled up with business,
the whole transaction suggests that Mr. Gates and his associates caught the American
Steel & Wire Co. badly diort on vessel tonnage.
[From the Conimercial Advertiser of Nov. 12, 1900.)
Steel & Wire puechasb. Conditions op the transfer of American Steam-
ship Co. STOCK.
From our own correspondent.
Chicago, November 12.— The American Steel & Wire Co. in purchasing from its
directors the stock of the American Steamship Co. pays 175 for the steamship stock.
It guarantees ttie principal and interest on an issue of»$5,250,000, 5 per cent bonds,
which are paid over tc the stockholders of the company for their share in the property
which cost them originally $3,000,000. According to a dispatch from Duluth, the
vessels purchased by the steel and wire company cost the American Steamship Co.
$3,500,000 two years ago, when they were acquired. The private comment is that
it.is a rather liberal profit to make in two years.
|[rroin the Wall Street Journal (evening edition) of Nov. 20, 1900.]
American Steel & Wire. A steel and wire director says: "Now that the company
is relieved of its burdensome contracts for material, Jione will be renewed with the
Federal Steel or other companies except at advantageous terms for the American
Steel & Wire Co. We have an aimual tonnage of 1,500,000 tons of ore from the mines
across the Lakes to Cleveland, where it is shipped by rail to Pittsburgh, and as it
was the transportation company had us at a disadvantage. Last year they jumped
the rates up. The outlay to purchase the dozen boats was over $500,000, many of
them were over 500 feet long and all were of modern construction." A handsome
surplus over preferred and common stock dividends is predicted.
[The Iron Age of Nov. 15 1900, p. 38, containing extract from Duluth, Minn., letter of Nov. 11, 1900.)
A sale is being negotiated, if it is not already closed, of all the 12 steel ships
of the American Steamship Co. to the affiliated organization the American Steel &
Wire Co. John W. Gates and friends in the management of the Steel & Wire, with
some others, are the stockholders of the American Steamship Co. The 12 steamers
are supposed to have cost two years ago and less, the last having been built during
the past summer, about $3,250,000. The selling price to the Steel & Wire is under-
stood to be about $2,000,000 higher. The ships were bought and built generally
speaking on a rising market, though most of them were negotiated for before the top
in plates had been reached or even approximated. They are being sold on a market
that is distinctly falling, both in the case of ships and earning power. The ships of
the fleet have probably earned net not far from $1,000,000 mis year, but with the
present best predictions for next year they will do well to make a third of that. They
are capable of carrying all the ore wanted by the Steel & Wire furnaces with some
probably to spare. The fleet has been managed from the office of A. B. Wolvin, of
Duluth, but it is hinted that another season they will be managed direct by the Steel
& Wire from Cleveland.
It was stated that the executive committee had invited Mr. Hill-
house to meet the board to-day at 7 o'clock.
After consideration, the following resolution was adopted: Whereas
the duties of this board are confined to the conduct of the business
affairs of this company to the best of their judgment in the interest
of its stockholders and they are not engaged in the purchase of
shares of this company l
Resolved, That the suggestion of Mr. Hillhouse that this company
buy his wife's preferred shares be, and is hereby, declined.
It was resolved that general counsel write a letter to Mr. James
Hillhouse inclosing a certified copy of the action of the board in
relation to his communication of November 26, 1900. Thereupon,
UNITED STATES STEEL COBPOEATION. 4257
general counsel dictated a letter to Hr. Hillhouse in the following
words and figures :
New York, December 10, 1900.
Mr. James Hillhousb, 47 Cedar Street, City.
Dear Sir: Your letter of November 26 to J. W. Gates, concerning which you were
invited to meet the board of directors, was submitted to the board at its meeting
to-day and I am by the board directed to send you herewith a certified copy of the
resolution of the board acting upon lieir commujiication.
Yours, truly,
Max Pam, General Counsel.
Kesignation of Herman Sielcken as directok. North Chicago
Mandamus Authorized.
January 28, 1901.
Meeting of the board of directors held.
Whereas the officers of this company heretofore presented to the
village board of North Chicago a petition on behalf of this conrpany
praying that the territory of this company within the limits of said
village and lying on the border thereof be disconnected from said
village and which said action of said officers was so taken under and
pursuant to the authority of the board of directors of this company
and meets with their approval; and whereas the said village board of
North Chicago has demed the prayer of said petition and it is desired
by this company to forthwith begin mandamus proceedings to com-
pel the said village board to grant the prayer of said petition: Now,
therefore, be it
Resolved, That F. L. Watson, treasurer, be, and he is hereby,
authorized to forthwith execute on behalf of and in the name and
under the seal of this company a petition for a writ of mandamus to
compel the said village board or such officers as may be proper
to grant the prayer of said petition aforesaid and to cause the said
petition for mandamus to be filed in the proper court and to take
all such proceedings and to do aU such acts and execute all such
papers as may be requisite or necessary to accomplish the discon-
nection of said territory as aforesaid either by legal proceedings or
otherwise.
Thereupon the chairman presented to the board a letter from James
Hillhouse readiag as follows:
New York Citt, January 25, 1901.
Re American Steel & Wire Co. of New Jersey.
Dear Sirs: On behalf of my wife, Hildegarde S. Hillhouse, I would request and
call upon you as the board of directors of the American Steel & Wire Co. of New Jersey,
to begin without unreasonable delay, a suit in equity for a resitution and an accounting
specified in my letter of November 26, 1900, to John W. Gates, Esq., which you caused
to be spread upon the minutes of the board of December 10, 1900, and with the con-
tents or which you may therefore be presumed to be familiar.
You will observe that I am endeavoring by this course to obviate the objection
successfully urged against a dissenting shareholders' suit in the case of Plynn v. Brook-
lyn City Railroad (158 N. Y., 493), decided by our court of appeals as late as April
18, 1899.
Since my letter of November 26 (supra) I have learned through further investigation
that the amount of bonds is $5,630,000 instead of $5,250,000, making the bargain so
much the more unfavorable to the American Steel & Wire Co. of New Jersey.
I have been also informed that the "American Steamship Co. of West Virginia,"
incorporated in the State of West Virginia, November 10, 1900, with amount subscribed
at the time $500 has been used as an intermediary in this transaction. Hence the
apparent propriety of making this corporation a party defendant as well as "the
American Steamship Co." (of New Jersey) and those occupying a fiduciary relation
4258 UNITED STATES STEEL COEPOEATION.
to " the American Steel & T\'ire Co. of New Jersey," specified in my letter of Novem-
ber 26, 1900, supra.
This communication is not intended to supersede but to supjjlement my letter of
December 11, 1900, to Alfred Clifford, Esq., chairman of the American Steel & Wire Co.
of New Jersey, which Mr. Clifford has kindly promised to submit to the next meeting
of the board, which as he has written to me would probably be held in New York on
the January 29. I should be glad to have this communication submitted at the
same time.
Yours, truly,
James Hillhouse,
Attorney for Hildegarde S. Eillhouse.
To the BoAHD OF Directors op the
American Steel & M'ire Co. of New Jersey,
Alfred Clifford, Esq.,
Chairman of the Company, 71 Broadway, New York City.
The letter was referred to general counsel and chairman for report.
The minutes of the executive committee of December 10, 13, 19,
20, and 27, 1900, and of January 8 and 10, 1901, were read and
approved.
Chicago, January 2S, 1901.
To the board of directors of the American Steel & Wire Co.:
TJentlemen: In submitting the annual statement of the company for the year
1900 we will only call attention to a few matters that can not be set forth fully in said
statement.
Our sales for the year amount to $57, 869, 587. 81
And our losses from bad debts amount to but 21, 804. 98
Or three hundred and seventy-seven one-thousandths of 1 per cent.
Our gross profits for 1900 were S, 002, 129. 14
Out of which we have set aside to cover depreciation and dismantle-
ments of plants the sum of 1, 000, 000. 00
Leaving net profits amounting to 7, 002, 129. 41
We have expended upon new construction and improvements (nearly all of which
was contracted for prior to April, 1900) the sum of $5,994,227.82.
The American Steel & Wire Co. was incorporated in Januarj^, 1899, but it was soon
evident in view of other consolidations which quickly followed that a more extensive
investment in ore, coal, coke, blast furnaces, and steel plants was absolutely essential,
and the board of directors made purchases of ore and coal lands and contracted for the
building of two large modem furnaces, as well as for the purchase of the Schoenberger
Steel Works and various other smaller plants competing against us in the manufacture
of wire. We still think these purchases were wise and believe that the future will
show that all of our investments were profitable ones for the company.
When this company was organized its working capital (quick assets
over liabilities) amounted to $13, 250, 000. GO
The profits of the company since its organization
amount to $19, 164, 658. 87
Out of which dividends have been paid of 7, 525, 000. 00
Leaving net earnings to add to original working capital 11, 639,' 658. 87
Total 24, 889, 658. 87
Since its organization the company has invested in new construction
and purchase of new plants and ore and coal lands the sum of. 13, 440, 715. 76
Showing that the working capital of the company as of December 31
was 11,448,943.11
Or a reduction since our incorporation of 1, 801, 056. 89
While we are still confident that this investment in new properties will largely
increase the earning powers of the company and in this way prove wholly to the
benefit of the shareholders, we find that our working capital is now reduced to a point
below our actual requirements, and in consequence we have been obliged during the
past year to borrow from banks a considerable amount, which, with our outstanding
paper given for merchandise, made of bills payable account as of December 31. 1900,
the sum of $2,266,947.95.
UNITED STATES STEEL COKPORATION. 4259
It is estimated that the completion of blast furnaces, opening of ore and coal mines,
and various other improvements to be paid for during the year 1900 will amount to
the sum of $3,124,600. When this work is completed, we shall have sufficient iron
ore, coal, and coke to cover our wants for many years to come and our blast furnaces
and steel works will convert the same into steel of considerable quality and sufficient
in quantity to practically cover our requirements.
The busmesa of the company suffered somewhat during the earlier months of the
year from the fluctuation in price of raw material, and as our company was then a large
buyer of pig iron and steel billets they were obliged to provide for their wants for a
considerable time ahead, thus taking a risk which will be avoided when we produce
our own raw material. The reduction in prices of pig iron and billets of about 50
per cent was Very unfortunate for our company, as it forced us to largely reduce our
prices, and as we had on hand and under contract a very large tonnage of raw mate-
rial we were obliged to stand a heavy shrinkage in values, all of which had to be
absorbed in our profits.
During the first few months of the year we were much disappointed in the volume
of business, but the last six months have exceeded any prior corresponding months
and we have been able to work off all of our high-priced material, and we entered the
new year with all of our stock on hand inventoried at the present market prices and
with no unfavorable contracts on our books. Our order books show about 200,000
tons entered for early future shipment, all at very satisfactory prices, and the outlook
for 1901 is certainly favorable. We hand you herewith our annual statement, which
we trust will prove satisfactory to our shareholders.
Very respectfully,
Alfred Clifford, Chairman.
January 29, 1901.
Meeting of board of directors held.
A report of the executive committee is included in the minutes
substantially to the effect of the above report by Mr. Clifford.
Balance sheet, Dec. SI, 1900.
Assets:
Real estate, buildings, plant and machinery $85, 289, 766. 90
Investments and advances to subsidiary companies 6, 138, 616. 82
Bills and accounts receivable 5, 666, 141. 47
Inventories 10, 623, 079. 19
Cash ' 2, 220, 657. 57
109, 938, 261. 95
Liabilities:
Capital stock —
Preferred $40, 000, 000. 00
Common 50, 000, 000. 00
90,000,000.00
Bills payable 2, 766, 947. 95
Accounts payable 3, 331, 655. 13
Depreciation 2, 000, 000. 00
Bad delit?. discounts, etc 200, 000. 00
2, 200. 000. 00
Profit and loss account:
Balance Dec. 31, 1899 10, 062, 529. 73
Add profit for year ending Dec.
31, 1900 $8, 002, 129. 14
Less depreciation 1, 000, 000. 00
7, 002, 129. 14
17, 064, 658. 87
Deduct dividends paid —
Preferred 2, 800, 000. 00
Common 2, 625, 000. 00
5, 425, 000. 00
11, 639, 658. 87
109, 938, 261. 95
4260 UNITED STATES STEEL. COBPOBATION.
We liave audited the books and accounts of the American Steel & Wire Co. of New
Jersey at the main office and at the various branches, and we certify that the net
profits of the company for the year ending December 31, 1900, were $7,002,129.14.
Fiill provision has been made for depreciation of buildings, plant and macliinery, and
for possible bad debts.
Jones, Oabsbr & Co.,
Chartered Accountanti.
54 Wail Street, New York, Janiuiry Z6, 1901.
DOMESTIC PKICES ADVANCED.
Eesolved that effective January 29, 1901, our selling prices on barb
wire, brigkt, annealed, and galvanized plain wire, and wire nails be
advanced $2 per ton.
February 20, 1901.
Meeting of board of directors held.
Present : A. Clifford, William Edenborn, William P. Palmer, John
W. Gates, John Lambert, I. L. EUwood, Thomas Dolan, P. A. B.
Widener, Dr. L. D. Ward, S. H. Chishohn, Thomas F. Ryan, J. A.
Drake, James Hopkins, H. Clay Pearce.
The following persons were elected for the executive committee:
J. W. Gates, WiUiam Edenborn, P. A. B. Widener, Thomas F. Ryan,
John Lambert, WilUam P. Palmer, H. Clay Pearce.
April 27, 1901.
Meeting of board of directors held.
Sale of Dearing Works plant to Frankhn P. Smith for $27,500
confirmed.
Sale of Cincinnati Works property to U. S. Leather Co. for $25,000
cash confirmed.
Mat 3, 1901.
Meeting of board of directors held.
Present : John W. Gates, Isaac L. EUwood, John Lambert, William
Edenborn, Thomas F. Ryan, Stewart A. Chisholm, Randal Morgan,
Alfred Clifford, James Hopkins, Leslie D. Ward, H. Clay Pearce.
Call for the meeting is as follows:
New York, Aprils, 1901.
To the board of directors American Steel & Wire Co. of New Jersey.
Gentlemen: A meeting of the directors of the company called for to-day has been
adjourned to take place at the office of the company in the Empire Building, New
York City, on Friday, the 3d day of May, at 3 o'clock p. m. This meeting is called at
the instance of the United States Steel Corporation, who desires a reorganization of
the board of directors, and who requests that each of the directors of this company sub-
mit his resignation so that they may act thereon at the meeting to be held Friday, in
accordance with their proposed reorganization.
Accordingly, I herewith notify you of the meeting and submit request for your resig-
nation. It is hoped that all the directors will be present, so as to facilitate the United
States Steel Corporation in a prompt reorganization of the board.
Yours, truly,
J. W. Gates, Chairman.
Resignations of Thomas Dolan, P. A. B. Widener, John A. Drake,
H. Clay Pearce, John W. Gates, Thomas F. Ryan, Randal Morgan,
I. L. Ellwood, and John Lambert; and election of E. H. Gary, C. M.
Schwab, J. S. Keefe, Frank Baackes.
united states steel oorpoeaxion. 4261
Mat 6, 1901.
Meeting of board of directors held.
Present: William Edenbom, Alfred Clifford, C. M. Schwab, Frank
Baackes, LesUe D. Ward, E. H. Gary, J. S. Keefe, C. L. MiUer.
Mr. E. C. Lott was elected in place of Mr. Hopkins, resigned;
Mr. F. H. Daniels was elected in place of J. W. Gates, resigned.
Eesignations of William Edenborn and WilUam P. Pahner.
June 10, 1901.
Meeting of board of directors held.
The capital stock of the Washburn & Moen Mfg. Co., owned by this
company, was reduced to $50,000.
The capital stock of the Worcester Wire Co., owned by this com-
pany, was reduced to $10,000.
APPROVAL OF ORE-PURCHASED CONTRACTS.
Resolved, That the acts of the officers of this company in executing
the following-named purchase contracts for iron ore to be delivered
to this company during the season of navigation of 1901 be, and the
same are hereby,'ratified, approved, and confirmed:
Chandler Iron Co., 150,000 tons, Chandler ore, price $4.62 f. o. b.
Lake Erie ports;
Republic Iron Co., 22,000 tons Kingston ore, price $4.43 f. o. b.
Cleveland, Ohio.
Sunday Lake Iron Co., 100,000 tons, Sunday Lake ore, price $3.59
f. o. b. Ashland, Wis.
Brotherton Iron M. Co., 100,000 tons, Brotherton ore, price $3.59
f. o. b. Ashland, Wis.
Hayes Mining Co., 30,000 tons, Taylor ore, price $2.42 f. o. b. Iron-
wood, Mich.
Hayes Mining Co., 160,000 tons Ashland ore, price $2.88 f. o. b.
Ironwood, Mich.
American Steel Hoop Co., 50,000 tons, Mahoning ore.
Approval of purchase from Merchants Wire & Nail Co. of machinery,
tools, and implements, and the material and supphes on hand at the
plant of the Continental Wire Co. at Gr?imte City, 111., and also a judg-
ment recovered by the Biddle Purchasing Co. against the Continental
Wire Co. and assigned to C. Van Camp.
June 13, 1901.
Meeting of board of directors held.
A resolution was passed providing for the sale of the stock of the
American Steamship Co. of West Virginia to the Pittsburg Steamship
Co.
July 29, 1901.
Meeting of board of directors held.
PIG-IRON PURCHASES.
The purchase through W. E. Dickson of the United States Steel Cor-
poration of 17,000 tons of Bessemer pig iron for delivery during July,
1901, at a price of $15.25 per ton f. o. d. furnaces; and of 6,250 tons
of basic pig iron and of 1,700 tons of low phosphorus pig iron, at $13.25
and $20 per ton, respectively, at furnaces were approved.
4262 UNITED STATES STEEL CORPORATION.
CONSOLIDATED BARB WIRE CO. PLANT LEASED TO ROBERT K. CLARK.
In view of the cessation of operation at the plant at Lawrence,
Kans., the lease was transferred to Robert K. Clark.
September 9, 1901.
^Meeting of board of directors held.
PIG IRON purchases.
The purchase through W. B. Dickson, of the United States Steel
Corporation, of 3,400 tons of low phosphorus pig iron for Worcester
at a price of $19.70 f. o. b. furnaces and of 2,500 tons basic pig iron
at $14.25 f. o. b. approved.
UNION SUPPLY CO., SALE TO OF PROPERTY OF AMERICAN SUPPLY CO.
Resolved, That the action of Messrs E. H. Gary, C. M. Schwab,
J. H. Price, S. W. Tener, and E. P. Long, stockholders of the American
Supply Co. (Ltd.), in voting to transfer all the property and assets
of said company to the Union Supply Co. (Ltd.), as of July 1,
1901, in consideration of the sum of $59,123.64, be confirmed.
The sale of the property of the American Land Co. to this com-
pany was authorized for not exceeding $823,667.95, or to assume
the debts of the American Land Co. and to pay $600,000.
December 9, 1901.
Meeting of board of directors held.
MAHONING ore PURCHASE FROM AMERICAN STEEL HOOP CO. CON-
FIRMED.
The purchase of 25,000 gross tons of Mahoning ore from the
American Steel Hoop Co. for delivery during the season of navigation
of 1901 at a price of $2.46 f. o. b. Lake Erie ports was approved.
AMERICAN LAND CO. PURCHASE RESOLUTION RESCINDED.
Counsel having decided that it is inadvisable from a legal stand-
point for this company to own and hold all of the property and assets
of the American Land Co., it was, on motion duly made and seconded,
resolved that the resolution adopted by this board at its meeting on
September 9, 1901, authorizing the purchase from the American
Land Co. of all of its property and other assets, be, and the same is
hereby, rescinded.
The following resolution was adopted:
It was resolved that the American Land Co. should transfer to
this company such property as this company desires, and that the
land company should reduce its capital stock proportionately.
BASIC PIG IRON PURCHASE CONFIRMED.
The purchase through Mr. W. B. Dickson, of the United States
Steel Corporation, of 16,000 tons of basic pig iron at the average
price of $13.75 per ton f. o. b. furnaces and of 6,126 tons of low
UNITED STATES STEEL COBPOKATION. 4263
phosphorus pig iron at the average price of $19.57 per ton f. o. b.
furnaces was approved.
EDGAR ZINC CO.
The ofl&cers of that company were requested to declare a cash
dividend of 10 per cent for year 1901.
AMERICAN MINING CO.
The officers of that company were requested to declare a dividend
of $35 per share, payable December 31, 1901.
RAILWAY companies' DIVIDENDS.
The officers of the railway companies were requested to declare
dividends as follows:
Pittsburg & Ohio "Valley Eailway Co., $10 per share; Newburg &
South Shore Railway Co., $200 per share; Northern Liberties Railway
Co., $140 per share; W^ukegan & Mississippi Vfilley Railway, $20
per share.
CANADIAN CORPORATION AUTHORIZED.
Resolved, That a committee consisting of Messrs. Kpefe, Baackes,
and MiUer be appointed with power to and instructed under advice
of general counsel to take the necessary action to form a corporation
under the laws of Canada with an authorized capital of not exceeding
$200,000, such corporation to be named Canadian Steel & Wire Co.,
located at Hamilton, and to be formed as nearly as possible on the
same lines as this company, it being understood that the initial
purpose of the Canadian corporation is to manufacture field fence
m Canada at an early date and to conserve our patent rights. Not
more than three field fence machines are to be installed at Hamilton.
January 20, 1902.
Jileeting of board of directors held.
Resolved, That the bank known as J. P. Morgan & Co. be, and it is
hereby, designated and appointed as a depositary of the funds of
this company in the city of New York.
FINDLAY PLANT.
The question of disposing of the abandoned Findlay (Ohio) plant
was brought up for discussion, and it having been represented that
there is some machinery stiU in the plant and some possibility of a
sale to other parties, after due dehberation it was, on motion duly
made and seconded, resolved that Messrs. A. T. De Forest and A. F.
AUen be, and they are hereby, appointed a committee to thoroughly
canvass the situation, arrange for the removal of the machinery, and
submit to the directors such offers for the property as they may be
able to secure, together with their recommendations regarding the
same.
4264 UNITED STATES STEEL COKPOBATION.
NEW WAREHOUSE FOE THE PACIFIC COAST.
Resolved, That President Palmer and Chief Engineer Daniels be,
and they are hereby, appointed a committee to recommend a loca-
tion in the city of San Francisco for the erection of a plant thereon
suitable for the needs of this company's Pacific coast business, the
cost of site and works ready for operation not to exceed the sum of
$125,000, and that their recommendation be reported to this board
for consideration.
Febeuaet 18, 1902.
Meeting of board of directors held.
PIG lEON purchases.
The purchase through W. B. Dickson, of the United States Steel
Corporation, from Pilli^ & Crane of the output of basic pig iron from
Cedar Point furnace. Port Henry, N. Y., from April 1, 1902, to
December 1, 1902, estimated at 100 to 175 tons per day, was approved.
The price of the above pig iron is to be fixed quarterly by mutual
agreement, $15.75 per ton f. o. b. Worcester bemg agreed upon for
the iron delivered up to July 1, 1902.
March 11, 1902.
Meeting of board of directors held.
PIG-mON PURCHASES.
The purchase through W. B. Dickson, of the United States Steel
Corporation, from Naylor & Co. of 15,000 tons of foreign basic Besse-
mer billets, 10,000 tons at 129.42 and 5,000 tons at $29.75 per gross
ton ex ship New York, for Allentown, Pa., works, was approved.
PURCHASE OF FUEL OIL FROM STANDARD OIL CO.
The purchase of 600 to 700 barrels (of 42 gallons each) per working
dav at a price of 2^ cents per gallon f. o. b. Worcester, from Standard
On Co., approved.
The purchase of the Folsom Street property in San Francisco for
$90,000 was confirmed.
PIG-IRON PURCHASES.
The purchase from Struthers Furnace Co. of 23,000 tons of basic
pig iron at $16 per ton f. o. b. furnace, deliveries March to September,
was approved.
-^ . , , April 21, 1902.
Meetmg of board of directors held.
PIG-IEON PURCHASES.
The purchase from the Dominion Iron & Steel Co., of Sydney, Cape
Breton, Canada, of 5,000 tons of O. H. basic steel billets for delivery
before July 1, 1902, at a price of $29.50 per ton, duty paid ex ship
New York, and the purchase through Naylor & Co., of New York
UNITED STATES STEEL. CORPORATION. 4265
City, of 11,000 tons soft basic Bessemer steel billets for delivery July
1, 1902, inclusive, at a price of $29.50 per ton, duty paid ex ship New
York, and the purchase through W. B. Dickson, of the United States
Steel Corporation, of 23,000 tons of basic pig iron from the Struthers
Furnace Co., of Struthers, Ohio, for delivery October, 1902, to Feb-
ruary, 1903, inclusive, price $16.50 per ton r. o. b. furnace, were ap-
proved.
PURCHASE OF LAMB WIRE CO.
The purchase from the Lamb Wire Co., of Northampton, Mass., of
aU its machinery and personal property for the sum of $1,350 was
approved.
SAN FRANCISCO.
Additional sums of $35,000 and $75,000, which, with the sum of
$90,000, niake a total of $200,000 for the plant at Folsom Street,
San Francisco.
June 10, 1902.
Meeting of board of directors held.
FERROSILIOON IRON.
The purchase of 200 tons of ferrosUicon iron from M. A. Hanna &
Co., at price of $25 per ton f, o. b. furnace, was approved.
ORE PURCHASES.
The following ore purchases were approved for the season of 1902:
From Minnesota Iron Co.: Per ton.
195,000 tons Group 2 Mesaba ore J2. 90
250,000 tons Clark ore 3. 13
200,000 tons Chisholm ore 3. 30
3,000 tons lump Vermilion ore 4. 32
From Oliver Iron Mining Co. :
85,000 tons Tilden ore 4. 07
110,000 tons Norden ore. 3. 68
250,000 tons Atlantic ore 4. 14
1,200 tons lump Chandler ore 5. 38
450,000 tons Negaunee ore 3. 79
20,000 tons ore 1. 70
July 15, 1902
Meeting of board of directors held.
PURCHASE OF GRISWOLD WIRE CO.
The committee (consisting of Messrs. Baackes, Keefe, and Farrell)
heretofore appointed to effect the purchase of the capital stock of the
Griswold Wire Co., of Braddock, Pa. (750 shares), reported that thej
had completed such purchase by the payment of $105,000 on basis
of $140 per share (the sellers having guaranteed that the assets ex-
ceed the liabilities by about $30,000, making the actual purchase
price to this company about $75,000).
4266 UNITED STATES STEEL COEPOKATIOST.
PIG-IKON PTJECHASE APPROVED.
The purchase of 4,200 tons of low phosphorus pig iron from the
Bethlehem Steel Co., at a price of $22 per ton f. o. b. furnace for de-
livery July to September, inclusive, for our Worcester works, was
approved.
The purchase of the entire product of coke of the Juniata Coke Co.
for the last six months of 1902, at $2.20 per ton f. o. b. Juniataville,
Pa., was approved.
FUNDS TRANSFEREED TO UNITED STATES STEEL CORPORATION.
Loan of $2,250,000 to United States Steel Corporation of funds of
company approved.
PACE WOVEN WIRE FENCE CO.
The purchase of this company was referred to Palmer, Schwab,
Edenborn, and Gary, with power.
September 9, 1902.
Meeting of board of directors held.
INDIANA COAL LANDS PURCHASE APPROVED.
The purchase of 1,200 acres coal lands in Sullivan County, Ind.,
for $11,234.19 was confirmed.
It was thereupon stated that pursuant to the decision of this com-
pany to manufacture its own rail bonds, erect a plant therefor, etc.,
a contract had been made with Wyman & Gordan and H. W. Wyman,
of Worcester, Mass., providing for the payrnent to them by this cora-
pany of the sum of $25,000, in consideration for which said parties
agree to withdraw from the raU-bond business for a period of IQ years;
to assist this company in any rail-bond litigation wmch i^w exists or
to which this company may hereafter be subjected; to seU at ap-
praised values their dies and machinery for the manufacture of rail
bonds and to assist in every way possible in designing and starting
the new plant; the said Wyman also agrees to assign to this company
his one-half interest in rail bonds Patent No. 560,455, issued April 23,
1896, this company already owning the other half interest.
ORE PURCHASES.
The president stated that the ore-mining companies had found it
impossible to deliver the desired quantities of certain grades of ore
for which we had contracted for this year's delivery and that it had
been found necessary to enter into new contracts as follows :
Minnesota Iron Co., 50,000 tons Group No. 1 Mesaba, $3.38 per ton
f. o. b. Lake Erie ports.
Ohver Iron Mining Co. : 85,000 tons Mountain Special, $2.76 per
ton f. o. b. L. E. ports; 50,000 tons Norris, $4.24 f. o. b. L. 0. ports;
10,000 tons Bell, $1.70 f. o. b. L.E. ports; 200,000 tons Atlantic,!, o. b.
L. E. ports.
The last-named contract being substituted for previous contract
for 250,000 tons same ore, which is canceled.
united states steel ookpoeation. 4267
Febeuary 17, 1903.
Meeting of board of directors held.
TROY STEEL WORKS CO. PURCHASED.
All property and securities of the Troy Steel Works Co., of Troy,
X. Y., having been purchased on behalf of the United States Steel
Corporation for $107,291.70 in cash and a note dated January 1,
1903, for $1,100,000, payable in cash or second-mortgage bonds of
the United States Steel Corporation during the year 1903, bearing
5 per cent interest. This company is to take over such property and
assume payment of said note.
AIarch 10, 1903.
ileeting of board of directors held.
SALE OF CROWN POINT PLANT, ETC.
President Palmer reported that the Crown Point furnace had been
dismantled and that the property at that point, except land and brick
buildings, had been disposed of, as follows:
To Colonial Iron Co., Kiddlesburg, Pa. (All metal work, firebrick, etc.
Terms, $5,000 cash; balance in notes of $6,000 each, payable Jan. 15,
Feb. 15, and Mar. 15, 1903) $23, 000. 00
To William Edenbom. (Morris blowing engine. Rails in sidings, $20 per
gross ton. Terms cash) 2, 500. 00
To Lake Champlain & Moriah Railroad Co. (N. 6. passenger car. Terms,
cash) 200. 00
To Northern Iron Co.:
Manganese ore, 6 cents per unit of iron (natural) per gross ton, less
48 cents per gross ton.
Old bed Port Henry ore (per gross ton) 16. 00
Hammondville (per gross ton) .95
Marble (per gross ton) .26
Limestone (terms cash, per gross ton) .03
On motion, duly made and seconded.
Resolved, That the action of the oflS.cers of this company in dis-
mantling the Crown Point furnace and in disposing of the property
there (except land and brick buildings) be, and the same hereby is,
in all respects ratified and approved.
^ APPROVAL OF MATERIAL PURCHASES.
Resolved, That the purchases by the officers of this company of the
following material be, and the same hereby is, in all respects approved :
Low-phosphorus pig iron: Tons.
Nov. 26, 1900, Mdtthew Addy & Co., $24 f . o. b. Worcester 1, 000
Jan. 17, 1903, Crocker Bros., $23.75 f. o. b. Worcester 1, 500
Feb. 10, 1903, Crocker Bros., $23.75 f . o. b. Worcester 1, 000
FALLS RIVET & MACHINE OO. BONDS.
Thereupon was presented to the board a statement in regard to the
standing of the Falls Kivet & Machine Co., of Cuyahoga Falls, Ohio,
whose bonds this company holds to the extent of $20,250; and, after
discussion, it was resolved that the treasurer of this company be,
31572— No. 53, pt. 2—12 34
4268 UNITED STATES STEEL, COEPOEATION.
and he hereby is, instructed to decrease the value of the bonds as
carried on the books of this company one-half, so that the same will
appear in the assets of this company as $10,125.
TROT PLANT.
The operation of the Troy plant was then taken up, the president
advising that the shortage of coke makes it impossible at present to
operate the same.
Resolved, That the starting of the Troy plant be postponed.
April 20, 1903.
Meeting of board of directors held.
PIG-IRON PURCHASES.
The following purchases were approved: February 25, 1903,
Northern Iron Co., output of Cedar Pomt furnace during April, May,
and Jime, 1903 (estimated at 9,000 tons), price $19.20 f. o. b. fur-
nace; low-phosphorus pig iron, March 2, 1903, Crane Iron Works,
4,000 tons, March to June delivery, price $21.50 f. o. b. furnace.
COMMITTEE ON CANADIAN PLANT.
The president advised the board that the probabilities were that
the Canadian Government would advance the tariff on wire rods and
wire products to a prohibitory extent, and that he would suggest that
a committee be appointed to investigate the advisability of mis com-
pany locating a plant in Canada for the manufacture of said products.
That said committee select a site on which to build a plant, and to
report as to the site and cost of plant required, stating that he thought
that the advantages of the Welland Canal should be taken into con-
sideration.
Resolved, That Frank Baackes, C. L. MiUer, F. H. Daniels, and
James A. Farrell be appointed a committee to recommend a location
in Canada for the erection of a plant thereon suitable for the needs
of this company's business, and to report on the size and cost of the
plant, for the manufacture of wire rods and wire products.
June 9, 1903.
Meeting of board of directors held.
NEWBURG & SOUTH SHORE RAILWAY,
Capital stock increased from .$2.5,000 to $750,000,
united states steel cokpobation. 4269
September 8, 1903.
Meeting of board of directors held.
ore purchases approved.
The f olloAving purchases were approved :
Iron ore from Minnesota Iron Co.: Per gross ton.
300,000 tons group No. 2 Mesaba •. $3. 54
649,079 tons Clark Chisholm : 3. 82
4,500 tons Soudan Vermilion 4. 64
Iron ore from Oliver Iron Mining Co. :
175,000 tons Zenith 4. 84
50,000 tons Jura 4.13
150,000 tons Norris 4. 47
50,000 tons Norden 4. 04
l40,000 tons Tilden •. 4. 22
180,000 tons Atlantic 4. 46
150,000 tons Negaunee Bess 4. 01
60,000 tons Moore 1.85
Iron ore from Carnegie Steel Co. ; 20,000 tons Pewabii Genoa 2. 50
All for delivery in season of navigation 1903, The prices f. o. b.
Lake Erie ports.
Kod scrap from Koehler & Strong, July 20, 1903, 700 tons, Sep-
tember-December delivery, f. o. b. Schoenberger Works, $18.60 net
ton.
Muck bar from Carnegie Steel Co., August 18, 1903, 1,000 tons,
September-December delivery, f . o. b. Schoenberger Works, $30 gross
ton.
SALE OF DUNCANSVILLE PROPERTY,
Formerly of Portage Iron Co. (Ltd.), to Carnegie Co.
December 8, 1903.
Meeting of board of directors held.
CONTINENTAL WIRE CO. SUIT.
President Palmer reported that the suit instituted by this com-
pany to compel the receiver of the Continental Wire Co. plant to turn
over to us moneys remaining in his possession at the time the plant
was turned over to us had been fought to a successful issue, and that
the receiver had by direction of the court turned into our treasury
the sum of $21,973.90.
PURCHASE APPROVED.
Low phosphorus pig iron from Bethlehem Steel Co., August and
September, 1903, 2,646 tons, f. o. b. Bethlehem, Pa., $20.50 per ton.
4270 united states steel coepobation.
Apkil 18, 1904.
Meeting of board of directors held.
PIG lEOX PURCHASES APPROVED.
Bessemer pig iron: March 3, 1904, 3,000 tons, $13 per ton, f. o. b.
furnace, from Andrews & Hitchcock Iron Co.; March 3, 1904, 3,000
tons, $13 per ton, f. o. b. furnace, from Pickands, Mather & Co.;
March 3, 1904, 8,000 tons, $13 per ton, f. o. b. furnace, from W. P.
Snyder & Co.; March 3, 1904, 5,000 tons, $13.85 per ton, f. o. b. New-
burg, from Toledo Furnace Co.
December 13, 1904.
Meeting of board of directors held.
Sale of 25 American Steamship Co. bonds for $25,000 to Pittsburg
Steamship Co. approved.
APPROVAL river TRANSPORTATION CONTRACT.
Resolved, That the action of the officers of this company in effecting
pontract with the Monongahela River Consolidated Coal & Coke Co.,
providing for the transportation by that company's barges of prod-
ucts of this company from its works in Pittsburgh and Donora, Pa.,
to its warehouses in Louisville, Ka'., Memphis, Tenn., St. Louis, Mo.,
and other Ohio and Mississippi River points for a period of 20 years
from September 30, 1904, and also providing for the lease to this
company for a like period of a site for this company's warehouse at
Louisville, Ky., be approved.
March 21, 1905.
Meeting of board of directors held.
DIVIDEND.
Eight per cent on common stock payable March 31, 1905.
DERING coal CO. CONTRACT.
Bearing date 29th day of December, 1904, between the Dering Coal
Co., Illinois Steel Co., American Steel & Wire Co. of New Jersey,
American Bridge Co., and the American Sheet & Tin Plate Co.,
approved.
Reduction in stock of Juniata Coke Co. from $3,000,000 to $200,000.
December 19, 1905.
Meeting of board of directors held.
DIVIDEND.
Four per cent on common stock payable December 30, 1905.
Ore requirements for 1905 from Oliver Iron Mining Co.
Per gross ton.
800,000 tons group No. 2 $3. 11
540,000 tons Clark Chisholm. . ; 3 36
260,000 twns Savoj^ 4. 04
5,500 tons Vermilion lump 4 28
150,000 tons Atlantic 3 77
50,000 tons Tilden 3. 44
150,000 tons Chapin 3, 35
All f. o. b. Lake Erie ports.
UNITED STATES STEEL OOBPORATION. 4271
APPROVAL SALE OF GRANITE CITY PROPERTY.
Resolved, That the action of the officers of this company in agreeing
to sell to the Granite City Lime & Cement Co., for the sum of $30,000
cash, the real estate and buildings at Granite City, lU., known as the
Granite City Works property, be, and the same hereby is, ratified and
approved.
PURCHASE OF NEW HAVEN PLANT OF NATIONAL WIRE CORPORATION.
Offered by letter of Mr. Shellabarger, was referred to Gary, Corey,
and Palmer with power.
March 20, 1906.
Meeting of board of directors held.
DIVIDEND.
Three per cent on common stock, payable March 3, 1906.
ABSORPTION OF TROT STEEL PRODUCTS DEFICIT.
Resolved, That the action of the officers of this company in arrang-
ing for the absorption in the profit and loss account of this company
as of December 30, 1905, of the net operating deficit for 1905 (amount-
ing to $17,028.69) of the Troy Steel Products Co., this company being
the beneficial owner of said company's capital stock, be, and the same
hereby is, in all respects ratified and approved.
CONFIRMATION SALE OF EDGAR ZINC CO. STOCK.
Resolved, That the action of the officers of this company in disposing
of its holdings of stock in the Edgar Zinc Co., of St. Louis, Mo., be, and
the same is m all respects, ratified and approved.
April 16, 1906.
Meeting of board of directors held.
DIVIDEND.
Ten per cent on common stock, payable June 30, 1906.
PURCHASE OF IRON ORE.
Resolved,, That the action of the officers of this company in executing
contracts providing for the delivery to this company by the Oliver
Iron Mining Co., during the season of 1906, of the following purchases
of iron ore be approved:
Per gross ton/, o. b. Lcike Erie ports.
Apr. 14, 1906:
145,000 tons Atlantic ore $4. 14
50,000 tons Tilden 3. 96
75,000 tons Ajax 3. 30
190,000 tons Everhart 3. 87
7,000 tons Norfolk Bess, crushed ore 3. 30
203,000 tons Savoy --- 4. 58
150,000 tons Group No. 5 ,3. 14
6,000 tons Vermilion lump 4. 75
953,000 tons Group No. 2 3. 56
377,000 tons Group No. 1 3. 93
4272 UNITED STATES STEEL COEPOEATION.
APPROVAL P. <fc O. T. RAILWAY CO. LEASE AT NEVILLE ISLAND.
' Resolved, That the action of the officers of this company in executing
a lease to the Pittsburgh & Ohio Valley Railway Co. for the land on
which said company's tracks are now or may hereafter be located on
Neville Island, Allegheny County, Pa., for a term of 10 years from
January 1, 1906, and thereafter until said lease shall be terminated
by 6 months' written notice by either party, the consideration for said
lease being the performance by the railway company of all yard
shipping and general railroad service, free of further cost to this
company, at ite NeviUe Island works and the maintenance of said
railway tracks and property on which same are located by said rail-
way company, be, and the same hereby is, ratified and approved.
APPROVAL OF P. & O. V. RAILWAY CO. LEASE AT ALLEGHENY.
Consideration the same as in the above lease.
APPROVAL OF NORTHERN LIBERTIES RAILWAY LEASE AT SOHOEN-
BERGER.
Consideration the same as in the above lease.
APPROVAL OF W. & M. V. RAILWAY LEASE AT WATTKEGAN.
Consideration the same as in the above lease.
APPROVAL OF N. & S. S. RAILWAY LEASE AT CLEVELAND.
Consideration the same as in the above lease.
September 19, 1906.
Meeting of board of directors held.
diviiJend.
Six per cent on common stock, payable September 29, 1906.
March 19, 1907.
Meeting of board of directors held.
dividend.
Four per cent on common stock, payable March 30, 1907.
Discontinuance of J. P. Morgan & Co. as depositary.
June 18, 1907.
Meeting of board of directors held.
dividend.
Five per cent on common stock, payable June 22, 1907.
UNITED STATES .STEEL OORPOKATION. 4273
IRON ORE PURCHASES APPROVED.
From Carnegie Steel Co., 25,000 tons Pewabic Genoa ore, $3 per
gross ton f . o. d. Lake Erie ports.
From Oliver Iron Mining Co. :
Kind.
Tons.
Price.
Savoy
Group No. 1
Group No. 2
Group No, 3
Virginia
Atlantic
Beresfordlump.
Everhart
Norfolk
Aiax
Cnapin
Barton
185,000
S5.54
328,000
4.78
863,000
4.52
240,000
3.68
106,000
4.39
60,000
4.92
3,000
5.17
200,000
4.66
8,000
4.08
65,000
4.02
13,000
4.73
60,000
4.25
All f. 0. b. Lake Erie porta.
September 17, 1907.
Meeting of board of directors held.
DIVIDEND.
Four per cent on common stock payable September 30, 1907.
December 17, 1907.
Meeting of board of directors held.
DIVIDEND.
Three per cent on common stock payable December 31, 1907.
PURCHASE OF ORB.
Resolved, That the action of the ofl&cers of this company ia effecting
the purchase of 44,000 tons Atlantic ore from the Ohver Iron Mining
Co. at $4.92 per gross ton dehvered Lake Erie ports for season of 1907
bei, and the same hereby is, in all respects ratified and approved.
September 15, 1908.
Meeting of board of directors held.
DIVIDEND.
Four per cent on common stock payable September 30, 1908.
4274 UNITED STATES STEEL COEPOBATION.
APPROVAL OF OKE PURCHASES.
The following contracts for delivery of iron ore during 1908 were
approved :
Per ton.
i.'arnegie Steel Co. (seller), 22,000 tons Pewabic Genoa *2. 70
Oliver Iron Mining Co. (seller):
199,000 tons Group No. 1 ■*■ 26
560,000 tons Group No. 2 ^W
105,000 tons Group No. 3 ^-34
20,000 tons Vermilion 3. 63
105,000 tons Savoy ■J- 10
42,000 tons Atlantic •'■48
25,000 tons Norrie-Norden •*. 09
3,000 tons Beresford Lump -1. 82
72,000 tons Ajax 3. 25
All f. o. b. Lake Erie ports.
December 15, 1908.
Meeting of board of directors held.
DIVIDEND.
Four per cent on common stock payable December 30, 1908.
APPROVAL OF ORE PURCHASES.
The following purchases of ore for 1908 delivery from Oliver Iron
Mining Co. were approved:
Per gross
Sept. 1, 1908: """■
31,000 tons Group No. 1 $4. 25
101,000 tons Group No. 2 4. 04
19,000 tons Ajax 3. 25
29,000 tons Barton 3.75
All f. o. b. Lake Erie ports.
INVESTMENT IN WAUKEGAN & MISSISSIPPI RAILWAY CO.
The president reported that the books of the American Steel & Wire
Co. show an investment of $60,000 in the capital stock of the Waukegan
& Mississippi Valley Railway Co., all of which except the three shares
owned by the directors of the railway company is owned by the Amer-
ican Steel & Wire Co. ; that the total appraised value of the property
and assets of the Waukegan & Mississippi Valley Railway Co. is only
some $22,000; and he recommended that steps be taken to bring the
outstanding capital stock of the railway company down to the amount
of its net assets.
Resolved, That the American Steel & Wire Co. cause to be assigned
and transferred and dehvered to the Waukegan & Mississippi Valley
Railway $38,000 par value of the capital stock of said railway com-
pany upon condition that the stock thus dehvered shall be canceled
and shall not be reissued except upon payment to the railway com-
pany of the par value thereof m cash or property; that the treasurer
of the American Steel & Wire Co. be, and hereby is, directed to
take such steps and execute such instruments as may be necessary
to carry out the foregoing resolution; and that the auditor of the
American Steel & Wire Co. be, and hereby is, authorized and directed
UNITED STATES STEEL OORPOEATION. 4275
to adjust the accounts of this company in respect to its investment
in the capital stock of the Waukegan & Mississippi Valley Railway
Co. in accordance with the results of this resolution.
March 16, 1909.
Meeting of board of directors held.
PtmCHASES NEW HAVEN AND PACIFIC FENCE MACHINES.
Resolved, That the action of the officers of this company in effecting
the purchase from E. F. SheUabarger, owner by mesne assignments
from the National Wire Corporation (a bankrupt) of certam fence
machinery located at the New Haven Works of this company (for-
merly of National Wire Corporation) and at the works of the Pacific
Steel & Wire Co., Oakland, Cal., and in making payment therefor
in the sums of $35,000 and $7,500 be, and the same hereby is, in all
respects ratified and approved.
PURCHASE CAPITAL STOCK DE KALB & UNION FENCE COS.
Resolved, That the action of the officers of this company in effecting
purchases from Mr. E. F. SheUabarger and associates of the entire
capital stock of the De Kalb Fence Co., 1,000 shares, and the Union
Fence Co., 500 shares, the properties of both companies being located
at De Kalb, lU., and '\a. makiiig payment therefor in the amount of
$275,000 after approval of abstract of title by counsel of this com-
Eany, as well as making payment at cost for inventory on hand and
ook accounts at face value (guaranteed by E. F. Shellabarger), less
bills and accounts payable, less 4 per cent for collection, be approved.
April 19, 1909.
Meeting of board of directors held.
PURCHASE OF PACIFIC STEEL & WIRE CO., INVENTORY, ETC.
Resolved that the action of the officers of this company in pur-
chasing from the Pacific Steel & Wire Co. its machinery in plant at
Oakland, Cal., at cost less \2\ per cent, and inventory at cost less
10 per cent, be approved.
June 15, 1909.
Meeting of board of directors held.
DIVIDEND.
Three per cent on common stock, payable June 30, 1909.
September 21, 1909.
Meeting of board of directors held.
4276 UNITED STATES STEEL CORPORATION.
DIVIDEND.
Two per cent on common stock, payable September 30, 1909.
Ore purchases approved.
From Oliver Iron Mining Co.:
56,000 tons Clearfield ore, at $3. 31
55,000 tons Ajax 3. 23
120,000 tons Atlantic 4. 26
• 30,000 tons Nome-Norden 3. 95
6,000 tons Vermilion lump 4. 99
72,000 tons Savoy lump 5. 14
88,000 tons Group No. 4 3. 21
318,000 tons Group No. 3 3. 26
678,000 tons Group No. 2 4. 10
261,000 tons Group No. 1 4.21
From Carnegie Steel Co., 10,000 tons Pewabic Genoa 2.70
All f. 0. b. Lake Erie ports.
December 21, 1909.
Meeting of board of directors held.
DIVIDEND.
Four per cent on common stock.
Approval ore purchases.
From Oliver Iron Mining Co.:
30,000 tons Barton ore, at |3. 62
12,000 tons Kadiz ore, at 3. 10
Per gross ton, f. o. b. Lake Erie ports.
June 21, 1910.
Meeting of board of directors held.
DIVIDEND.
One per cent on common stock, payable June 30, 1910.
PURCHASE OF ANTHONY FENCE CO. PROPERTY.
Eesolved that the action of the officers of this company in execut-
ing a contract agreeing to purchase all the property of the Anthony
Fence Co. at Tecumsen, Mich., including the real estate, buildings,
machinery, patents and patent rights, bms and accounts receivable,
and inventory of fiGoished and unfinished material in consideration
of the sum of $200,000 plus 95 per cent of accounts, etc., receivable
and cost of inventory as of June 30, 1910, be approved.
MONONGAHELA RIVER CONSOLIDATED COAL & COKE CO. CONTRACT.
Resolved that the action of the officers of this company in execut-
ing in the name of the company, and on behalf also oi the other sub-
simary companies of the United States Steel Corporation, a contract
dated June 1, 1910, with the Monongahela River Consolidated Coal
& Coke Co., providing for the construction by this company of 10 or
more steel barges and the transportation of products of this company
UNITED STATES STEEL OOKPOEATION.
4277
and its allied companies in said barges and others owned by the
Monongahela Co. on the AUegheny, Monongahela, Ohio, and Missis-
sippi Kivers for a term expirmg September 30, 1924, subject to the
right of either party to terminate on three years' written notice to the
other, be and the same is in all respects ratified and approved.
Meeting of the board of directors held.
Septembee 20, 1910.
DIVIDEND.
Three per cent on common stock, payable September 30, 1910.
ALABAMA CORPORATION.
President Palmer reported that pursuant to the authority hereto-
fore conferred upon him he had fully considered the situation of this
company with regard to its building of a new plant in or near Bir-
mingham, Ala., and that under advice of counsel, the American
Steel & Wire Co. with a capital stock of $100,000 has been incor-
porated under the Alabama laws, and that said company had already
purchased a site and commenced the erection of wire rod and wire
mills at Ensley in said State. The action of President Palmer was
confirmed.
APPROVAL OF ORE CONTRACTS, 1910.
With Carnegie Steel Co., May 6, 1910, 15,000 tons Pewabic Genoa
ore, $3 per gross ton, f. o. b. Lake Erie ports.
With Oliver Iron Mining Co.
MAY 10, 1910.
Group.
Tons.
Per gross
ton.
No. 1
116,000
642,000
476,000
218,-O00
90,000
133,000
40,000
167,000
350,000
1^0,000
60,000
38,000
30,000
75,000
S4.63
No 2
4.48
No. 3
3.64
No 4
3.64
No. 5
4.16
No 7
3.21
4.40
6.69
4.97
6.64
Atlantic
4.76
4.84
4.44
4.16
AUGUST 1, 1910.
11,519
t4.84
All f. 0. b. Lake Erie ports.
4278
uxited states steel cokpobaxiox.
December 20, 1910.
Meeting of board of directors held.
DIVIDEND.
Two per cent on common stock, payable December 31, 1910.
APPROVAL OF ORE CONTRACTS, 1910.
With Oliver Iron Mining Co.
Date.
Tons.
20,000
100,000
15,000
Group.
Per gross
ton.
Sept. 27, 1910
Sept. 13, 1910
Sept. 27,1910
Atlantic
54 76
Bernhart . .
4 16
(Note. — The last meeting extracted was that of Apr. 17, 1911.)
Book Marked "No. 1." National Tube Co. from January 15,
1901, to Date,, Containing All Minutes of said Company.
rujiors of new competition, etc.
Mr. Converse said that there were rumors that the Carnegie Co.
is about to install and operate a tube works with a capacty of 280,000
tons per annum. "It is well known, the tendency lately so con-
spicuous to estabHsh a community of ownership or a unified control
over great industries as the only means of restraining destructive com-
petition, led to the incorporation of various great companies. The
same tendency for the same reasons led to the unity of control over
great railroad systems because they could find no other way of main-
taining rates and preventing the cutthroat warfare which bankrupted
the weaker ones, destroyed the profits of others, and caused all manner
of discrimination and uncertainty among patrons. * * * During
the 18 months this corporation lias run there has never been a time
when it could not have manufactured to advantage and profit
material in competition with nearly all of the numerous industrial
groups, including the Carnegie Co., but the policy of the management
so far has beeii that, except forced by self-protection, this company
would not displace a ton ot its neiglibor's product by entering any
other lines than strict tubular goods. It has rigidly' confined itself
to this principle up to this time. The Carnegie Co. is now enjoying
trade in plates on ships at the rate of about 150,000 tons per annum
with the National Transit Co., a department of the Standard Oil Co.
This is more than equal to any tonnage which the Carnegie Co. has
ever made for tubular purposes. From this it will be seen that the
Cai-negie Co. interests have been protected through the care and
friendliness of the Standard and National Cos. and under the full
belief warranted by the facts, statements and circumstances, that such
an arrangement would fully satisfy the Carnegie Co. in their ample
demand for their full measure of steel tonnage for conversion into
tubular products.
UNITED STATES STEEL COKPOKATIOX. 4279
"In all of the arrangements between the National Steel, Republic,
Ameritan Sheet Steel and Plate, and others of the industrial steel
groups it has been the unwritten law that each group should confine
itself to the fabrication of its own specialities and should voluntarily
refrain from using constant surplus of material by the production of
the special product of its neighbors. If this unwritten law is to be
ruthlessl;^ disregarded by the Carnegie Co., it will, of course, have a
broader significance than the mere competition with our own products.
It is the intention of your officers to continue their efforts to strengthen
our position at all important plants, increase our raw-material supply,
to reduce the fixed charges thereat, and to conabine to manage the
affairs of this company conservatively and economically."
COKE CONTRACT.
A contract for additional ConneUsville coal supply and new coke
furnaces at Wheeling was entered into with H. C. Frick Coke Co.,
duration 2 years.
REBATES.
Mr. O'Day further said that the reported statement of Mr. Car-
negie that they were not able to sell their material was not true.
That the Standard Oil Co. would take twice as much from the Car-
negie Co. as they were able to get and that they had contracts for a
certain amount of steel and the Carnegie Co. never filled the orders
on time. Mr. Bacon said that it was really a question of rebates and
a railroad issue on the part of the Carnegie Co.
CONTRACTS FOR NONCOMPETITION.
Contract was entered into with Hirsh & Co. of Frankfort on Main,
the most powerful distributor of tubular goods in Germany, for a
period of 3 years; also a 5-year contract with S. Jarvis Adams Co.,
for the manufacture for this company of pipe balls, bell dies, long dies,
chain links, for use at all departments, except the National and Morris-
Tasker, and that as a part consideration noncompetition agreements
were held \vith the sellers.
CONSPIRACY PROCEEDINGS.
All the remaining shares of the Standard Seamless Tube Co. have
been purchased. It was necessary in order to secure the McKelvey
interests to prepare, under the advice of counsel, a bond of indemnity
against any contingent liability arising out of some old conspiracy
Eroceedings instituted by the Shelby Tu.be Co. which appeared to
ave no life.
ARAGON MINING PROPERTY PURCHASE.
It was recommended by the experts that this property be pur-
chased at any figure under $4,000,000. The company has an option
for $2,5b0,00'0, together with payment for suppUes on hand and ore
on dump which might come to $250,000. The property can only be
acquired on these terms through the influence of Messrs. J. P. Mor-
gan & Co.
4280 UNITED STATES STEEL COBPOBATIOK.
PENNYLSVANIA LEGISLATURE.
A law permitting nonresident corporations to hold more than 100
acres of Ismd in the State of Pennsylvania has been passed by the
legislature, said law having been originated and fostered by the
National Tube Co. and its counsel, in view of the advisability of
commending the law so that the title of the company might be
unified in a single corporation.
FAVORS TO READING IRON WORKS.
A strike at the Keading Iron Works, the largest competitor of this
company, has resulted in bringing in a number of their clients to our
sales department. This was being encouraged only as a means of
placing them under obligations with the view of permanent business
relations.
SALES OF PREFERRED STOCK OF UNITED STATES STEEL CORPORATION
TO SAME.
Resolved, That this corporation sell to the United States Steel
Corporation aU or any part of the 17,000 shares of preferred stock of
said corporation now owned and held by this company at market
price of same.
Last meeting April 20, 1911.
Mr. Ireland calfed on Mr. Wheeler, of the American Sheet & Tin
Co., on July 28, 1911, about 4.30 p. m., and requested copies of
agreement between American Sheet & Tin Co. and American Can Co.
Mr. Wheeler refused to furnish the agreeemnt at this time, stating
that he did so on the advice of counsel, and on the further ground
that they should not be given " except under an arrangement whereby
they would be used only as confidential information for the com-
mittee," which quotation he read from a telegram he held in his
hand. He furnished a copy of the operating contract between
American Sheet & Tin Plate Co. and the Union Steel Co., referred to
in the minutes of .
With regard to the Morgantown matter, he exhibited two deeds
and an option agreement and agreed to furnish a copy of the option
agreement to-morrow. He stated that his recollection of the trans-
action was that some people started to build a mill at Morgantown
and got Mr. Sturgiss to invest $50,000 in these bonds. Before the
mill was completed the company was thrown into bankruptcy and
Mr. Sturgiss bought up a large number of claims on the property for
25 cents on the dollar.
He then came to the American Sheet & Tin Co. and requested them
to purchase the property; the option agreement was the result of
these negotiations. Air. Sturgiss found that he had great difficulty
in carrying out his agreement owing to the fact that other people
held about $100,000 worth of the bonds. The company extended the
time for carrying out the agreement one year and^further agreed to
release Mr. Sturgiss if he then found that he could not dehver the
property. The deal, however, was finally consummated.
Mr. Ireland called on Mr. Wheeler July 29 and was permitted to
examine the books of the American Tin Plate Co. and American Sheet
UNITED STATES STEEL COBPORATION. 4281
•Steel Co. from January 1, 1901, and was furnished with a copy of the
option agreement with Mr. Sturgiss which follows :
Minutes of Pittsburgh, Bessemer & Lake Erie Railroad and the
minutes of Bessemer & Lake Erie Railroad, from January 1, 1901, to
date, were examined, but nothing of interest was found, the
minutes consisting largely of election of officers and purchase and
sale of small pieces of real estate.
Minutes of Stookholdebs' Meetings of American Tin "Plate
Co., AT East Orange, N. J., Beginning Mat 28, 1901, to April
17, 1911.
Nothing but annual meetings to elect officers.
Minutes of Meetings op Stockholders of American Sheet
Steel Co., Commencing April 18, 1901, to April 16, 1906.
Nothing but annual meetings to elect officers.
Minutes of Meetings of Board of Directors American Sheet
Steel Co. from Mat 10, 1901, to September 18, 1906.
June 19, 1906.
Present: Messrs. McMurry, Gary, Corey, and Bray.
sale of land with eesteictions as to use.
Resolved, That in consideration of $1 there be conveyed to George
B. Gordon 4.24 acres of land (by deed without covenants), located
in Crescent Township, Allegheny County, Pa., subject to following
conditions : That if the land or buildings thereon be used for manu-
facturing steel sheets or tin plates at any time before July 13, 1911,
the interest of said grantee to cease and determine.
Executive committee of American Tin Plate Co. Meetings held in
New York, beginning April 4, 1901. No minutes after September 30,
1901."
Mr. Wheeler states that the company dissolved after that date.
The minutes simply state bare facts of resolutions introduced and
passed without giving discussion. For instance, in one case the
minutes read substantially as follows: "Matter of salaries of officers
for ensuing year was then taken up. A list of the proposed salaries
was read and approved." No hint was given as to the amount of
the salaries. While this has no bearing on the matter under exami-
nation, it indicates the absence of information from the minutes.
Minutes of Dibeotors' Meetings of Amebican Tin Plate Co.,
Beginning Mat 16, 1901.
Empibe Building,
New York, February 6, 1903. "
Present: Mr. Gary, Graham, Dickinson, Appelgate, Braric, Murray,
and Wheeler.
4282 UNITED STATES STEEL COKPOBATIOISr.
PUECHASE OF SHAEON TINPLATE STOCK.
ilr. Graham reported that he had received a proposition from
John H. Stevenson, jr., president of Sharon Tin Plate Co., acting
on behalf of minority stockholders, to sell 2,985 shares out of 3,243
shares outstanding, at S153.17, being book value of same. The
remaining 260 shares can probably be secured. After full discussion,
it was resolved to purchase said shares or any portion thereof for
cash or otherwise.
Note. — No further record concerning this purchase appears in the
minutes, but Mr. Wheeler stated that stock was purchased.
Minutes Book of Ameeican Sheet & Tin Plate Co. feom
December 13, 1906 to June 19, 1911.
June 10, 1908.
Present: Messrs. McMurtry, Gary, Bray, Davis, and Murray.
OPEEATING contract WITH UNION STEEL CO.
Contract submitted and approved as follows:
Copy of contract annexed.
Book marked "Proceedings of Stockholders, Board of Directors,
and Executive Committee of Shelby Tube Co. of New Jersey,"
commencing February 2, 1901, to September 28, 1901, contained
nothing of interest; simply election of officers and minutes concerning
sales of small pieces of real estate. These minutes were written on
separate sheets of paper put in a legal back, and appeared to be
pasted in the back of the book sometime ago and to nave been put
in at the same time. The meetings were held in New York, Cleveland,
and elsewhere, and the separate sheets of minutes were probably
mailed to Pittsburgh.
Continuation of minutes in book marked "Meeting of stockliolders
June 19, 1906, at Newark, N.J." Present in person or bv proxy,
Messrs. Converse, Gary, Corey, Trimble, Schiller, Nicholson, Worcester,
Dickson, Culbertson, and United States Trust Co. in trust for United
States Steel Corporation.
Purchase of National Tube Co. plant at EUwood City, Pa., authorized
for .'$487,925.13, plus value of raw materials and manufactured prod-
uct on hand, July 1, 1906.
AMERICAN SHEET STEEL CO.
The company was incorporated March 28, 1900. The objects of
the company were to manufacture and deal in sheet steel, mining,
real estate, and transportation, and agricultural products. The
capital stock authorized was $52,000,000, divided into $26,000,000
preferred stock and $26,000,000 common stock. The company is
authorized to purchase stock of corporations, including its own stock
and may sell the property of the company upon consent of two-
thirds of the stock.
At the first meeting of stockholders and incorporators there were
J resent : D. W. Morrow, P. J. McCook, A. T. Bartlett, A. L. Curtiss,
. J. Treacy, Charles J. Fay, being all the incorporators and stock
holders.
The certificate of incorporation provides :
(14) An executive committee may be appointed from the directors and the number
thereof and the compensation of its members fixed in the first instance by the incor-
porators, and as the terms of membership expire, respectively, successors shall be
appointed and their compensation fixed by the stockholders. Said terms of member
ship shall be the same as the terms of office of the members, respectively, as directors
of the company.
Such committee shall have all the powers conferred upon it by this certificate, by
the by-laws, or by the directors, and shall have all the powers of said board when
same is not in session; and it shall also have power to fix the number required for a
quorum to make rules for the conduct of its business and to appoint from its mem-
bers officers for its own proceedings.
All the directors, irrespective of class, are eligible for membership of said committee,
and any member who shall cease to be a director of the company shall ipso facto
cease to be a member of such committee; the board of directors, however, shall have
no power to remove members thereof. Vacancies in such committee occurring
otherwise than by expiration of term of membership shall be filled for the unexpired
term by majority vote of the remaining members of the committee, or by a vote of
the majority of a quorum, with the written assent of enough absent members to make
with tiliose voting such majority.
Meeting of stockholders.
March 30, 1900.
The executive committee was appointed, consisting of seven mem-
bers, at a salary of $15,000 per annum, as follows: William H. Moore,
W. B. Leeds, D. G. Reid, W. F. Graham, D. W. Morrow, A. P. Bart-
lett, T. M. Day, jr. F. S. Wheeler was appointed secretary of execu-
tive committee.
First meeting of directors.
March 28, 1900.
Present: D. W. Morrow, P. J. McCook, A. T. Bartlett, A. L. Curtiss,
J. J. Treacy, Charles J. Fay, T. M. Day, jr., Clifford C. Fay, and
W. E. Dwight, being all the directors.
The by-laws, section 6, provide ia part that the executive com-
mittee may order meetings of the board of directors.
Section 7 provides in part that officers and directors shall be sub-
ject to removal by a vote in favor thereof of a majority of all the
31572— No. 53, pt. 2—12 35 4283
4284 UNITED STATES STEEL COEPOEATION.
members of the executive committee. Vacancies in the offices named
may be filled by the board of directors or by the executive committee.
Compensation of of&cers to be fixed by board of directors or executive
conamittee.
Section 8 pro^ddes in part that both board of directors and execu-
tive committee shall assign duties or give powers to officers.
Section 9 provides La part that the treasurer's bond is made subject
to approval of board of directors or executive committee.
Section 12 provides in part that payments of money and contracts
are to be executed by officers designated by board of directors or
executive committee.
The following officers were elected: D. W. Morrow, president; P. J.
McCook, vice president; J. J. Treacy, secretary; A. P. Bartlett,
treasurer.
Meeting of directors.
March 29, 1900.
The president laid before the board the draft of two proposed
agreements between this company and D. Wiley McCaughey, of
Chicago, III., and the offer of the latter to enter into the same for
the transfer to this company of the lands, plants, properties, and
stocks as therein described of certain corporations and concerns
therein named engaged in the manufacture of steel sheets and also
for the transfer to this company of certain incidental contracts as
stated therein and for the payment to this company of the sum of
money mentioned and for the performance of other tnin^ as therein
stated, all in consideration of the issue to said McCaughey, or
upon his order, of $15,995,000 par value of the fuU paid preferred
stock and $16,000,000 par value of the full paid common stock of
this company, and of the making by this company of certaia agree-
ments and assignments as set forth in said proposed agreements.
Eesolutions were passed to enter into the agreements above
referred to.
Meeting of directors.
Maeoh 29, 1900.
Contracts with D. Wiley McCaughey for acquisition of plants
executed.
Meeting of directors.
March 30, 1900.
Kesolution was passed to purchase the works of the ApoUo Iron &
Steel Co., at Vandegrift, Pa. —
with the right to the American Sheet Steel Co. to use and maintain any existing
switches connecting said works with the West Penn Railroad Co. —
also all the capital stockJof^the^ApoUo Gas Co. —
also all the right of said Apollo Co. in and under a certain contract entered into
between said company and the said Apollo Gaa Co. dated October 13, 1899, but sub-
ject to two contracts made in tripartite; one between the said Apollo Co. and the said
Apollo Gas Co. and the Chilled Roll Foundry; and one between said Apollo Co., said
Apollo Gas Co., and the Vandegrift Fuel Gas Co., to supply gas to said Chilled Roll
Foundry and said Vandegrift Fuel Gas Co., at the rate of 8 cents per thousand cubic
feet of natural gas, which contracts are to be carried out and performed by the pur-
chaser and the rights of said ApoUo Co. under the said last-mentioned contracts to be
■UNITED STATES STEEL OOEPOBATION. 4285
assigned also to the purchaser * * * all for the consideration of $6,000,000 par
value of preferred stock and $6,000,000 par value of common stock of this company; it
being a part of said offer that this company in addition to the above-mentioned con-
sideration shall undertake and shall be boimd to pay, keep, and perform aU contracts
made and entered into by the Apollo Co. and existing at the time of the transfer of
the properties embraced by said offer and remaining wholly or partly unperformed,
for the purchase of supplies and materials from others, or for the erection and con-
struction of improvements and additions by others to said mill or works, and also for
the manufacture and delivery of manufactured product or other product by said
Apollo Co. to others including the above-mentioned contracts to the Apollo Gas
Co., the Chilled Roll Foundry, and the Vandegrift Fuel Gas Co.; * * * it,
being a further condition of said offer that Geoi^e G. McMurtrie shall be the president
and chief executive officer of the purchaser (this company) and that said Apollo Co.
shall be represented on the board of directors and upon the executive committee of the
purchaser (this company) by not less than two members, the same persons to act in
both capacities and be nominated by the board of directors of the said Apollo Co.;
and it being a further provision of said oSer that neither said purchaser (this company),
nor any other person m whose name the title may be taken on its behalf, or in whose
name the business of said mill or works may be conducted, or any of them, shall by
means of any agreements or contracts with any manufacturers of rails or fpundrjrmen,
or with any combination of such manufacturers or foundrymen discriminate against
the above-mentioned Chilled Roll Foundry, its successors, or prevent the said Chilled
Roll Foundry getting its proper allotment of orders from the above-mentioned com-
panies from tune to time proportionately to its productive capacity. And it the above-
mentioned companies, or either of them (this company and any company or companies
holding title or doing business in its behalf as aforesaid), shall at any time enter into
any contract with any manufacturers of rails or foundrymen or with any combination
of the same for the purchase of machinery or rolls, then the said Chilled Roll Foundry,
its successors and assigns, shall if it so desire, be taken in as a party to said contract
and it shall from time to time be entitled imder such contract to orders in proportion
to its capacity: Provided, however, That while the said allotment to said Chilled Roll
Foundry, its successors or assigns, under this condition or under such contract shall
be increased from time" to time in proportion to the increase of its producing capacity,
yet in no event shall the increase of allotment exceed a due proportion of three times
its present capacity unless other manufacturers increase their capacity in excess of
three times their present capacity.
March 30, 1900.
Meeting of directors.
Resolutions to execute agreements with D. Wiley McCaughey for
purchase of plants, etc.
The president further reported that pursuant to the agreement
between D. Wiley McCaughey referred to in the foregoing resdlutions
there had been paid and dehvered to this company amounts x)f cash
and of stock and agreements as securities against mortgage liens and
to protect other matters, as follows:
(1) Corning Steel Co., agreement to acquire mortgages and 3,500
shares of preferred stock of this company to secure the same.
(2) Dominion Rolling MiU Co., 170 shares preferred and same
amount common stock of this company to cover existing mortgage. '
(3) Pittsburg Steel Manufacturmg Co., agreement to build plant
secured by 500,000 shares preferred and same amount common stock
of this company.
(4) Chester Rolling MUl, agreement to buUd plant secured by
$112,000 and 1,888 shares preferred stock and same amount common
stock of this company.
(5) Coshocton Rolling MiU Co., agreement protecting against rever-
sion secured by 200 shares of the preferred and same amount of com-
mon stock of this company.
(6) New Philadelphia Iron & Steel Co., $3,000 in cash to secure
discharge of mechanics' lien.
4286 UNITED STATES STEEL COBPOBATION.
(7) West Penn. Sheet Steel Co., in lieu of transfer, assignment
of option and delivery of 500 shares of preferred and same amount
common stock of this company, as provided in the McCaughey agree-
ment of March 29.
(8) Midland Steel Co., agreement to protect against judgment.
(9) Old Meadow Rolling Mill Co., deposit of $50,000 in cash to
protect against pending smts.
(10) Republic Iron & Steel Co., two agreements touching trackage
and trainage rights and privileges.
(11) Aetna Standard Iron & Steel Co., bond of National SteelCo.
against mortgage.
By-law No. 4 was amended so as to provide for 17 directors, and
that majority should be quoriun. The following additional directors
•of the first class were elected: WUham H. Moore, William B. Leeds,
D. G. Reid, a,nd W. T. Graham.
The following directors were elected: A. W. Brown, second class;
M. I. Arms, third class; R. J. Beatty, fourth class; W. E. Riis, fifth
class; and Hemy Wick and R. M. Gubert in place of J. J. Treacy and
P. J. McCook, F. S. ^Tieeler in place of C. J. Fay, James H. Moore in
place of A. L. Curtiss, J. G. Batelle in place of C. C. Fay, J. A. Topping
m place of W. E. Wright.
The following officers were elected: B. G. Reid, president; J. A.
Topping, vice president; J. G. BateUe, vice president; M. I. Arms,
vice president; A. W. Brown, vice president; D. W. Morrow, vice
president; F. S. Wheeler, treasurer; H. B. Wheeler, assistant treas-
urer; A. P Bartlett, assistant treasurer; H. B. Wheeler, secretary^
R. J. Beatty, general assistant manager; J. M. Scott, auditor.
At a meeting of the executive committee of this company, held
April 10, 1900, the resignations of E. W. Morrow and A. P. Bartlett
as directors were accepted and also the resignation of D. G. Reid as
president. George G. McMurtry and Wallace P. Bach were elected
directors of the first class and George G. McMurtry was elected
president.
At a meeting of the executive committee of this company, held
April 12, 1900, J. T. Batelle and M. I. Arms resigned.
May 1, 1900.
Directors' meeting.
Present: McMurtrv'. Moore, Bach, Topping, Wick, Gilbert, Batelle,
Graham, and Wheeler.
Resolution to purchase capital stock of the W. Dewees Wood Co.
for $2,500,000 preferred stock of this company and $2,500,000 com-
mon stock of this company and guarantee $2,000,000 5-per-cent 10-
jear gold bonds of the W. Dewees Wood Co.
Makch 31, 1903.
Annual meeting of stockholders.
Certificate of incorporation amended so as to read:
(1) The name of the corporation is American Sheet & Tinplate Co.
(2> The principal office is at 51 Newark Street, Hoboken, County
■of Hudson. N. J.
(3) The statement of objects was amended to include manufacture
of tinplate, etc.
(4) Capital stock, $52,000,000, divided into 520,000 shares of SlOO
^ach; $26,000,000 preferred and ?26,000,000 common stock.
TENNESSEE COAL, IRON & RAILROAD CO.
Minutes of Board of Dieectoes and of Stockholders, Begin-
ning WITH the Meeting of the Board of Directors on^
December 30, 1901.
Article IV of the by-laws provides for an executive committee of
seven members, four of whom shall be a quorum. The minutes of
such committee are to be recorded by the secretary.
December 30, 1901.
Meeting of board of directors.
The chairman stated that there had been purchased from the
Louisville & Nashville and Southern Railway Cos. the foUowing^
securities : Three hundred and seventy Alabama Steel &. Shipbuilding
Co. bonds, $370,000, and 148 shares Alabama Steel & Shipbuilding
Co. preferred stock, $148,000, makmg $518,000, for $400,000, being
equivalent to 77.2 per cent on the par value of the securities, thus
saving by the transaction accrued interest on these securities to the
amount of $12,000. The annual saving in interest charges on the
basis of 6 per cent interest on the money borrowed to retire these
securities is $7,040.
October 6, 1902.
Meeting of board of directors.
Sale of iron on basis of $18.50, foundry at Birmingham.
December 19, 1905.
Meeting of board of directors.
Mr. Oaldeigh Thorne was elected director.
March 29, 1906.
Meeting of board of directors.
Price of rails fixed at $29 f. o. b. null.
May 22, 1906.
Meeting of board of directors.
Letter from Mr. Topping, stating that the directors of the Tennessee
Coal, Iron & Railroad Co. and those of the Republic Iron & Steel Co.
are the same, and opinion of Mr. Bartlett, or Simpson, Thatcher &
Bartlett, that it was not unlawful to continue business under those
conditions.
Note. — The meeting of May 22, 1906, is followed by the minutes of the meetingof '
May 21, 1907.
May 21, 1907.
Meeting of board of directors.
The chairman presented condensed comparative statement of
earnings and of all products for four months ending AprU 30, 1907,,
as compared with the same period in 1906. Net earnings above all
fixed charges, interest, and depreciation amounted to $611,247.17,
a gain of 35 per cent over last year, and surplus, after paying divi-
4287
4288 UNITED STATES STEEL COEPOEATION.
dends, interest on common stock, subscriptions, and all special
charges, amounted to $335,638.61, a gain of 37^ per cent.
Production showed the following percentages of increase over last
year: Ingots, 4 per cent; pig iron, 11 per cent; merchants' steel, 18
per cent; coal, 24 per cent; coke, 5 per cent; iron ore, 12 per cent;
limestone and dolomite, 2 per cent. Price for iron, $20 to $21 per
ton Birmingham. Sales thereof for first quarter 1908, at $18.50.
The chairman reported on the subject of a revaluation of the min-
eral properties of the company that the chartered accountants had
agreed to the proposition that it would be in line with proper pro-
cedure to establish a higher valuation in view of the large apprecia-
tion which has taken place in the value of raw materials during the
past few years; the purpose of such revaluation being in the present
mstance the creation of a surplus value sufficient to cover the depre- .
ciation which must inevitably be provided for in carrying out the
policy estabUshed of rebuilding our manufacturing department.
November 12, 1907.
Meeting of board of directors.
John A. Topping resigned as director.
November 20, 1907.
Meeting of board of directors.
F. B. Winslow was elected auditor of the company.
January 29, 1908.
Meeting of the board of directors.
The president reported loans from the United States Steel Cor-
poration of $2,250,000, secured by promissory notes at the rate of
6 per cent per annum. Authority to borrow an additional $3,000,000
was voted.
October 20, 1909.
Meeting of board of directors.
The exchange of $28,100 par value of stock of McCune Iron Co.,
owned by Tennessee Coal, Iron & KailroadCo., for $37,500 par value
first-mortgage bonds of Schaefer Manufacturing Co.
Note.— The last meeting extracted was that of June 20, 1911.
Minutes of the Executive Committee, beginning with the
Meeting of April 13, 1906, as Extracted.
April 13, 1906.
Meeting of executive committee.
Present: Messrs. John A. Topping, chairman; L. C. Hanna, G, B.
Schley, and J. W. Gates, four in all, being a quorum of the committee.
The following gentlemen were also present: Messrs. D. H. Bacon,
president; E. J. Berwind of the board of directors, Charles Hart,
general manager of Republic Iron & Steel Co.; T. J. Bray, assistant
to the president; and J. A. Durfee, general superintendent of Ensley
division.
Preliminary- to the discussion of the question of extensions and
improvements of our works at Ensley, the question of the control
and operation of the tracks and equipment at present owned by the
Birmingham Southern Railroad Co. and about our own furnaces,
works and yards was considered. It was the unanimous sentiment
UNITED STATES STEEL OOEPOBATION. 4289
of the committee that before any final action be taken, looking to an
increase of product at the Ensley furnaces and steel plant arrange-
ments must be completed with the owners of the Birmingham
Southern Co. for the acquisition by this company of the right to con-
trol and operate such tracks and equipment as might be necessary.
1. On motion, a committee consisting of Messrs. G. B. Schley and
J. W. Gates, together with the chairman, was selected to confer with
the officers of the Southern Railway and the Louisville & Nashville
Railroad Co., and an appointment was arranged for this committee
to meet Messrs. Henry Walters and Samuel Spencer on Thursday,
April 19.
Plans and drawings were submitted by Mr. Durfee, showing the
location of tracks, furnaces, etc., at the Ensley steel plant, and a
verbal explanation was made of the several plans which had been
under consideration for the enlargement of the steel-making capacity
of the company. It developed that it was the unanimous opinion
of the members of the committee and of the officers present that in
the extension of the open-hearth plant contemplated at present, no
attempt be made at experimental construction, but that we should
proceed along the fines of practice demonstrated successfully in our
own and similar operations.
May 3, 1906.
Meeting of the executive committee.
Mr. Bartlett, of Messrs. Simpson, Thatcher & Bartlett, general
counsel, came into the meeting by invitation and a discussion fol-
lowed on the general subject of the extent to which cooperation and
economy might be secured between this company and the Republic
Iron & Steel Co. by a combination of departments and a unifica-
tion of offices. Counsel stated that in his judgment no legal objec-
tion could be taken to the performance by the same individual of
official duties in connection with both companies. The further
subject of trade and commercial transactions between the two com-
panies resulted, after discussion, in the adoption of the following
preamble and resolution, which were framed by Mr. Bartlett:
(18) Whereas in the nature of the business of the Tennessee Coal, Iron & Raiboad
Co. and the Republic Iron & Steel Co. there are certain to be sales and other trans-
actions between the two companies; and
Whereafl the executive committees of the two companies are identical and the chief
official in each company is the same person: Therefore be it
Resolved, That a meeting of the full board of each company be called at an early
date and asked to take action in the premises.
May 23, 1906.
Meeting of the executive committee.
Cash estimates prepared by the treasurer covering anticipated
financial resources and requirements of the company to the end of the
year were submitted. In this connection the subject of the present
outstanding obfigations of the company came up for discussion. The
chairman stated that it would be possible, if the committee thought
it advisable, to borrow money from the Repubfic Iron & Steel Co. for
the payment of existing indebtedness to banks, amounting to $500,000.
After a brief discussion it was, on motion —
(25) Resolved, That the treasurer be, and he hereby is, authorized to borrow from
the Republic Iron & Steel Co., on notes of this company at current rates of interest
and without collateral, sums up to the aggregate amount of 1500,000, and that all
existing loans at the banks be taken up at maturity.
4290 UNITED STATES STEEL, COEPORATION.
26. The chairman submitted the treasurer's reports of financial and
general operations for the month of April, which on motion were
received and placed on file.
The chairman presented a statement showing a condition of rail
sales for 1906-7 indicating a tonnage booked for delivery to January
1, 1908, of 327,199 tons. The chairman stated that the extension to
the steel works, if promptly authorized along the lines suggested by
detail plans to be submitted by the next meeting of the board, on June
12, and which, if adopted and authorized, it was thought would enable
the management to bring into service the new equipment of the steel-
works extension by the 1st of May, 1907, would add an increase in the
output to our present capacity estimated at from 15,000 to 20,000
tons per month. Based on this estimate, he further stated that the
estimated output of rails prior to January 1, 1908, would be approxi-
mately 425,000 tons. He desired to know whether it would be ad-
visable, in the judgment of the board, to sell the surplus raU output of
approximately 100,000 tons. After discussion it was, on motion —
(27) Resolved, That the management be authorized to sell 100,000 tons of steel
rails at the present market for such deUvering in 1907 as the company can make.
The president presented a report from Mr. Walker Percy, general
counsel, setting out an analysis of the conditions of obtainmg in the
matter of trac&, rates, etc., at the time immediately prior to the sale
by the Tennessee Co. of the Birmingham Southern Railroad to its
present owners.
The chairman read a letter from Mr. W. B. Allen, manager of the
land department, in regard to the proposition to lease to the La Fol-
lette Coal, Iron & Railway Co. certain lands of the company in Cocke
and Greene Counties, Tenn., for the mining of brown ore. In the
discussion which followed it developed that the committee were op-
;osed to the pohcy of leasing any of the mineral lands of the company,
he chairman was asked to ascertain whether an offer to purchase the
lands in question could be secured in lieu of a lease.
June 12, 1906.
Meeting of the executive committee.
The statement of the treasurer for May, showing reduction in earn-
ings as compared with April of approximately $88,000, was presented.
The chairman informally explained the reasons for this decrease,
showing the same to be due in part to extraordinary charges for gen-
eral management, to an increase of manufactured stocks carried on
hand, same being inventoried at cost, and to changes in methods of
accounting, under which more liberal charges had been made to cost
for "reconstruction purposes."
A resolution was passed that the purchase of the Birmingham
Southern Railroad be referred to a committee of three, consisting of
the chairman, Mr. Gates, Mr. Schley, with power, on the basis of an
arrangement with the Louisville & NashviUe Railroad and the South-
ern Railroad to pay for the property in notes of this company for one,
two, and three years, or a longer period, with interest not to exceed
5 per cent per annum, with the privilege, at our option, of discounting
or extending these notes.
The exchange of 11,000 acres of upper Cahaba coal fields for a like
acreage situated in the Pratt field, just east of Warrior River, was rec-
ommended.
UNITED STATES STEEL OOKPORATION. '4291
With regard to the action taken by the committee authorizing the
officers to borrow not to exceed $500,000 from the Repubhc Iron &
Steel Co., the chairman stated that the sum of $300,000 had been
borrowed for four months at 5 per cent.
The chairman also presented an estimate of financial resources and
requirements to February 1, 1907, as follows:
Estimated earnings (7 months, at $100,000) $700, 000
Cash on hand June 1 469,000
Balance of subscriptions to new common stock 2, 550, 000
3, 719, 000
Bills payable 750,000
New construction (proportions as above) 886, 000
Dividends 460, 000
2, 096, 000
June 13, 1906.
Meeting of executive committee.
(55) Resolved, That the treasurer be, and he is hereby, authorized to borrow from the
Republic Iron & Steel Co. such sums not exceeding in the aggregate $1,000,000, and for
sucn periods of time as in the judgment of the chairman may be desirable at a rate not
to exceed 5 per cent per annum.
Following a discussion of Birmingham Southern matters, it was
the consensus of the board that the chairman and committee
empowered to arrange details for the purchase of the railroad
property should endeavor to complete the deal and secure control of
the railroad not later than August 1, 1906, and at an earlier date if
satisfactory arrangements can be made for the transfer and operation
of the property.
July 3, 1906.
Meeting of executive committee.
(84) The chairman reported that as a result of change in the
policy of selling pig iron a tonnage of approximately 50,000 tons had
been put at prices ranging from $13 to $13.75 f. o. b. Birmingham.
He further stated that a buying movement of fair proportion was
under way and that in his judgment it would be a wrong policy to
withdraw from the market and that sales should be continued at
best obtainable prices until a larger tonnage has been booked, so as
to secure the future operations of. the company. On motion, this
poHcy was approved.
The chairman reported that he had concluded negotiations for the
purchase of the Birmingham Southern Railway and submitted a copy
of the agreement entered into with the Louisville & Nashville Railroad
and the Southern Railroad Co., as follows:
New Yokk, June SO, 1906.
It is agreed that the Tennessee Coal, Iron & Railroad Co. shall purchase the capital
stock of the Birmingham Southern from the Louisville & Nashvilleand Southern at a
figure representing the actual net cost thereof to July 1, 1906.
The terms of payment shall be $250,000, payable at the time of closing, and in cash
or its equivalent, acceptable to the vendors. It is understood that the Birmingham
Southern may convey the line from Blocton-'Woodatock to the nominee of the
vendors and in consideration thereof, the Tennessee Coal, Iron & Railroad Co. will
execute notes of equivalent amounts maturing in one, two, three, and four years from
date, with interest at 5 per cent per annum, payable semiannually, said notes to be
4292 UNITED STATES STEEL COBPOBATION.
secured by the collateral pledge of all the stock purchased, said stock to stand as
security for all of said notes and to remain in pledge until the last note is paid.
The sale shall be closed on this basis at any time before January 1, 1907, on 10 days'
notice by the Southern and Louisville & Nashville that they are ready to make
deUvery, but the closing shall be aa of July 1, 1906.
Tennessee Coal, Iron & Railroad Co.,
By John A. Topping, President.
Louisville & Nashville Bailroad Co.,
By M. H. Smith, President.
Southern Railway Co.,
By W. W. FiNLEY, Second Vice President.
(86) The chairman stated that the State of Tennessee had filed a
claim or authorized suit for the collection of back taxes, figured on
the basis of the intangible assets of the company situated outside of
the State of Tennessee, and submitted a joint letter from Messrs.
Simpson, Thatcher & Bartlett, general coimsel, and Mr. Walker
Percy, the local counsel of the company, on the subject of the
validity of this claim. The general counsel advised that the full
claims set up by the State of Tennessee, in their opinion, could not be
collected, but that there were a great many questions involved which
for reasons of policy it might be well to attempt a settlement out
of court. And in view of this recommendation the chairman stated
that he had advised the local coimsel, Mr. Walker Percy, to proceed
along the lines recommended by the general counsel. The chairman's
action in this respect was approved by the board.
The chairman reported that he had had an interview with Com-
missioner James A. Garfield, of the Department of Commerce and
Labor, who had requeste'd that the company furnish certain informa-
tion concerning our operations, sales, manufacturing costs, and profits.
He stated that the commissioner had been advised that the request
for this information involved a question of policy and that our reply
to his request would be deferred for a few weeks until the matter
could be submitted to the board of directors for their approval.
This was reported by the chairman to be acceptable to the com-
missioner.
(89) In this connection the chairman further stated that he would
look into the character of the information wanted carefuUy and more
particularly and would report at a later meeting of the board whether
it would be feasible or advisable in his judgment to give out the
fuU information of the character requested.
The chairman reported that the claim of the State of Tennessee for
back taxes had been compromised for the sum of $70,000.
The chairman presented a report of the consummation of the
purchase of the Birmingham Southern Railroad and the execution
under approval of counsel of certain highly advantageous traffic
agreements with the connecting railroads, of the passing of all deeds
and contracts provided in the settlement, and of the payment of the
stipulated purchase price, including execution of the notes of this
company to the amount of $1,101,849.20 to the Louisville & Nashville
and Southern Railways, payable in equal amounts in one, two, three,
and four years from July 1, 1906. All the papers pertaining to the
acquisition of the Birmingham Southern Rauroad and all traffic and
other agreements referred to by the president were submitted to the
meeting.
UNITED STATES STEEL OOEPOEATION. 4293
The chairman submitted a statement of sales and general market
conditions. The statement showed a total of pig iron booked for
delivery as of August 1, of 110,971 tons foundry and mill grades ^nd
27,400 tons of basic, this tonnage representing at the present rate of
output approximately five months' production. He stated that
sales were being made for immediate delivery on the basis of $15
Birmingham for No. 2 iron, and that we were quoting and that recent
orders had been entered for the first quarter of 1907 on the basis of
$14.50 Birmingham; also that the company had approximately
10,000 tons additional No. 2 iron for sale durmg the fourth quarter.
The statement further showed unfilled rail tonnage amounting to
290,7'97 tons, and that of this total 45,000 was past due.
September 18, 1906.
Meeting of the executive committee.
The chairman presented a complete monthly statement of opera-
tions for the month of August, showing net earnings of $72,241.50,
improvement over preceding month of approximately $40,000; also
showing a material increase in the production and shipments in all
departments.
Quarterly dividends of 2 per cent on preferred stock and 1 per cent
on common stock were declared.
Resolution was passed authorizing the issue of the balance of
uTiissued common stock amounting, approximately, to $3,500,000
at par.
October — , 1906.
Meeting of the executive committee.
The chairman stated that the meeting had been called for the
special purpose of considering a proposition to purchase jointly with
the Republic Iron & Steel Co., the Potter iron-ore lands in Alabama;
that this property comprised approximately 1,800 acres of mineral
lands on the Red Mountain seam, including our leasehold, upon
which are situated the two slopes designated Potter No. 1 and No. 2,
He stated that he believed the property could be bought for not to
exceed $1,000,000, only a small part of which must be in cash;- that
our people estimated the lands to contain from 50,000,000 to
70,000,000 tons of ore. No. 1 grade. Maps were exhibited showing
the situation of the property. He stated in this connection that
Muscoda slope Nos. 1 and 2 ultimately reach the Potter lands, ren-
dering the service plants at these points useless unless we control the
Potter holdings. At Potter No. 1, the slope at present is in hard ore,
and we could therefore develop a hard-ore mine in a short time.
Potter No. 2 wiU be in hard ore very shortly. We may reasonably
count in the near future on having four slopes operating on the Potter
lands. By virtue of the exhausting of the mineral in fee lands
tributary to Muscoda Nos. 1 and 2, and aside from the strategic
importance of the control of this property on account of the large
investment and heavy depreciation that would result on maturity
of the lease or exhaustion of fee ore, he would recommend the pur-
chase of the property at the favorable price named. After a general
discussion it was, on motion duly made and seconded, resolved that
the purchase of the Potter iron-ore lands jointly with the Republic
Iron & Steel Co. be authorized^ and that negotiations looking thereto
be referred to the chairman with power.
4294 united states steel coepoeation.
October 16, 1906.
Meeting of the executive committee.
The chairman stated that the minimum prices quoted at the pres-
ent time is $16.50 f. o. b. Birmingham for No. 2 foundry, first quarter,
1907; that the rail tonnage on the books showed a total of 266,192
tons, the mill being 42,000 tons behind its engagements.
A resolution was passed to permit the commissioner of corpora-
tions such access to the books and records of this company as may
be necessary for the purpose of their investigation, the same to be
conducted at their expense.
Purchase of the Potter ore lands for $800,000.
October 18, 1906.
Meeting of the executive coromittee.
The chairman brought up the subject of the right of way requested
by the Atla'nta, Birmingham & Atlantic Railway through Reeders
Gap, at which point the proposed railroad will cross both the property
of this company and that of Mark L. Potter, which is at present
under option to this company and the Republic Iron & Steel Cfo. He
explained that Mr. Potter had authorized the railroad company to
proceed with the grading of their lines, although at the time no defi-
nite right of way nad been granted. He furftier stated that it was
desired by the railroad company to secure a right of way 100 feet
wide which, together with the right of way at present held by the
Louisville & Nashville Railroad Co., through the gap would probably
render it very difficult and expensive for another line to pass through
the mountain at this point. He explained that in view of the proba-
bility that ultimately we might wish to attack our ore resources by
shaft operations conducted in the territory southeast of Red Moun-
tain and of the fact that in that event would Avish to reach these
operations over our own rails, which would of necessity pass through
Reeders Gap, it would be prudent to secure for ourselves a desirable
right of way through Reeders Gap. Maps were presented showing
the line desired by the railroad company, and the right of way pro-
posed by the land department that we offer them. The chairman
stated that for the purpose of safeguarding our own interests, he
would recommend the securing of a right of way and the construction
of a track, which, for the present, would not involve any expensive
grading or ballasting through the gap, thus insuring to ourselves
access on our own tracks and limiting the railroad company te the
right of way which the management preferred they should occupy.
(121) After discussion the recommendation of the chairman was
approved and the management was authorized and instructed to
take the necessary steps to stop the track-laying operations of the
Atlanta, Birmingham & Atlantic Railway, to bidld tracks of our own
through Reeders Gap and to afford the Atlanta, Birmingham &
Atlantic Railway such right of way through our property as shall
not interfere in anyway with our present or future operations.
October 22, 1906.
Meeting of executive committee.
The chairman stated that he had received a communication from
August Belmont, president of the Civic Federation, and that at
Mr. Belmont's suggestion a Mr. Phillips had called to present per-
UNITED STATES STEEL COEPOEATION. 4295
sonally a request of the federation for a subscription for the purpose
of assisting an education propaganda by the circulation of literature
and by other legitimate means, for the purpose of counteracting the
current socialistic and anticapitalistic publications of the periodical
press.
November 22, 1906.
Meeting of executive committee.
The chairman submitted a statement for the month of October,
showing net profits of $93,000, and stated that the profits were some
$18,000 less than might have been expected owing to the fact that
shipments of pig iron were 6,000 less than production owing to car
shortage.
The chairman made remarks upon general operating conditions
South and presented statement of sales, showing total of 156^469
tons of miU and foundry grades on the books at an average price of
$14,428, and 79,953 tons of basic to the trade at an average price
of $15,454, in addition to our own requirements of approximately
25,000 tons monthly. He also presented tonnage statements show-
ing a material increase in production for the period ending Octo-
ber 31, as compared with the same period last year, and also for the
current month to date, as compared with the previous month.
A resolution was passed to issue the unissued stock of the com-
pany to the extent of 15 per cent of the par value of stock held by
each stockholder.
December 20, 1906.
Meeting of executive committee.
(148) The subject of the payment of coupons was brought up,
and after discussion it was, on motion duly made and seconded,
determined to discontinue the employment of the Hanover National
Bank for this service and to pay all coupons at the National Bank
of North America, it being assumed that an arrangement could
be made with them by which necessary funds would be deposited
15 days in advance of the date of payment in lieu of other compen-
sation for such service.
January 30, 1907.
Meeting of executive committee.
The chairman presented the regular statements covering the
operations of the company for the month of December and the
twelve months ending December 31, 1906, comprising the following
individual reports: (1) Income account; (2) analysis of earnings;
(3) orders on hand, pig iron and steel; (4) production cost, ship-
ments and prices December; (5) production cost, shipments and
prices, year; (6) general balance sheet; available assets.
Income account showed net earnings after interest charges and
depreciation of $95,241.84 for the month and $1,145,006.81 for the
year; dividends of 4 per cent on common stock and 8 per cent on
preferred stock amounted to $912,080; sinking fund on general
mortgage bonds to $47,760; interest on subscriptions to new com-
mon stock to $48,376.21.
The chairman also presented a letter from Mr. L. Hoover, treas-
urer, accompanying the statements, summarizing the results for the
year in comparative form with those of the previous year, together
4296 UNITED STATES STEEL. CORPOBATION.
with a statement which is filed with the executive record papers of
this meeting.
Resolved, That the investment of this company in the stock of the Potter Ore Co.
be valued at $400,000, same representing the cash investment of $50,000 plus the
liability of the company to its proportion of $700,000 of guaranteed bonds.
Attention was called by the chairman to the fact that this valua-
tion was equivalent to 10 cents per ton on 40,000,000 tons of ore,
which our mterest in the tract is estimated to contain, and that
based upon a 5 per cent royalty the operation of the sinking fund
wiU retire the bonded debt and vest absolute title to the property
ia the company upon the payment of a less sum ia the aggregate
as interest than would have been paid to the owner of the property
upon the same tonnage as royalty based upon an average price of
pig iron.
The chairman presented statements of sales and production, both
for the period endiag December 31, 1906, and for the month of
January to date. From the former it appeared that the orders
for pig iron on the books amounted to 142,000 tons of foundry
grades and 62,000 of basic, which, allowing for our own require-
ments, indicated that upon our estimated output the company was
sold up on all grades for the first half of 1907 and for about 25 per
cent of its make on the last half.
Resolved, That the price of 0. H. steel rails for 1907 and 1908 delivery be estab-
lished at $30 per ton f . o. b. Ensley ou terms of cash 30 days.
January 31, 1907.
Meeting of executive committee.
Mr. Walker Percy, southern counsel, entered the meeting, and at
the request of the chairman explained in detail, at some length,
the situation as it exists with reference to tax matters in the State of
Tennessee, and the possibility which confronts the company of having
to meet heavy and unreasonable taxation. He explained the provision
of the Tennessee statutes providing for the taxation of corporations
doing business outside the State, upon the market value of outstand-
ing bonds and stocks less the assessed valuation of property outside
the State. He related the steps taken by the legal department in
their endeavor to remedy the existing unfortunate condition, includ-
ing the introduction in the Tennessee Legislature of two bUls, one
amending the tax law by substituting actual for assessed valuation
of outside properly, although in this connection he suggested the
danger mignt arise of excessive taxations in Alabama. Upon the
subject of a surrender by the company of the Tennessee charter,
he stated that, in his judgment, in which Messrs. Simpson, Thatcher
& Bartlett, general counsel, concurred, there was no legal means of
accomplishing this purpose under existing statutes without the
unanimous consent of all stockholders, but that with this in view a
second bill had been introduced into the legislature under which
such action could be legally accomplished, any dissenting stockholder
having the right to have the value of his stock established by judi-
cial action such as may be paid to him in lieu of all damage.
(298) On motion, the action of counsel was approved and Mr.
Fency was requested to take vigorous steps in furtherance of the
pendmg legislation and the chairman was authorized to make such
expendfitures as might be necessary.
united states steel ooeporation. 4297
March 6, 1907.
Meeting of executive committee.
The chairman stated that the meeting had been called particularly
to discuss the immediate financial position of the company. He pre-
sented two statements of requirements and resources, the first show-
ing an estimated cash balance as of April 1, and stated that, in view
of our easy situation in regard to cash for the immediate future, he
would instruct the treasurer to repay the Republic Iron & Steel Co.
$200,000, the balance of the loan of this company, this payment
being included among the requirements shown on the estmaate.
The second estimate indicated a deficit as of July 1, for which provi-
sion will be made. The statements are as follows:
' Financial estimate to April 1, 1907.
S/6B0tlXC6S '
Cash on hand Feb. 25, 1907 $24, 263. 41
Estimated proceeds of Southern Ry. notes $600, 000. 00
Bills receivable (February and March maturities) 18, 452. 85
Estimated collections from customers to Apr. 1 1, 125, 000. 00
Second installment stock subscriptions, due Mar. 11. . 850, 000. 00
2, 593, 452. 85
Total available 2,617,716.26
Requirements:
Balance of January pay rolls (due in February) 10, 902. 99
Estimated February pay rolls (due in March):
Operating labor $343, 582. 40
Construction labor 131, 417. 60
Vouchers on hand payable in February 475, 000. 00
Estimated voucher requirements during
March —
General vouchers 542, 847. 19
Construction 457,152.81
1, 000, 000. 00
Coupon account 42, 000. 00
General salaries and expenses 44,000.00
1, 698, 251. 71
Estimated cash balance Apr. 1, 1907 919,464.55
MEMORANDUM.
On April 1 there will be on hand awaiting payment between the .
1st and the 15th of the month March pay rolls for account of con-
struction amounting to $86,000.
i General statement of resources and requirements to July 1, 1907, as of March 1, 1907.
Requirements:
Unexpended balance of appropriations made prior to Feb. 1, 1907,
viz — ■
Construction $4,703,331.69
Replacement Ill, 694. 83
Birmingham Southern R. R 353,142.76
Miscellaneous 9, 117. 87
5, 177, 287. 15
Less not required prior to July 1 1, 700, 000. 00
3, 477, 287. 15
Add cost of unwatering Ish. Eooda mines (informally approved) . 50, 000. 00
3, 527, 287. 15
4298 UNITED STATES STEEL OOBPOBATION.
Requirements — Continued.
Notes due Louiflville & Nashville R. R. and Southern Ry., July 1 . $275, 462. 30
Dividend May 1 262,191.00
Republic Iron & Steel Co., loan. 200,000.00
Total requirements 4, 264, 940. 45
Resources: _,_„ „„, ,„
Cash on hand Feb. 1 $416,825.40
Stock subscriptions —
Mar. 11 $850,000.00
June 10 850, 000. 00
1, 700, 000. 00
Earnings 5 months, at $100,000 500,000.00
Bills receivable on hand 474, 861. 21
3,091,686.61
Deficit July 1, 1907, to be provided for 1, 173, 253. 84
Explanatory note:
Previous estimate dated Jan. 29, 1907, showed deficit July 1 , 1907 . 760, 543. 81
Deficit as per present estimate 1, 173, 253. 81
Difference to be accounted for 412, 710. 00
Explained as follows:
Increase in net working assets (after eliminating cash and adjust- ,
ing provision for bond interest) 92, 775.33
Increase in inventory 171, 376. 74
Additional appropriations authorized 39, 721. 89
Unwatering Isn. Kooda mines (informally approved) 50, 000. 00
Expenditures in excess of appropriation 55, 377. 14
Miscellaneous petty items 3, 458. 90
Total as above 412, 710. 00
The chairman further stated that the company had in its treasury
$615,000 of the notes of the Southern Railway Co., running for various
periods from 4 to 24 months, and averaging about 13 months. He
further stated that preliminary negotiations had been conducted with
our New York banli looking to the discounting of this paper and that
the best rate hitherto offered by them was 7 per. cent. He thought
this rate somewhat excessive, but if a rate of 6^ per cent could be
secured, he would favor discounting the paper and requested author-
ity from the committee so to do.
(306) After discussion the chairman was authorized to discount the
Southern Railway paper now in the treasury of the company on such
terms as he might deem satisfactory.
March 20, 1907.
Meeting of executive committee.
Chairman submitted monthly statements from the treasurer, cover-
ing operations for February, which showed net earnings for the month
above all charges of $92,711.55.
Sales for February amounted to 8,675 tons of foundry iron, at $18.50
and 1,540 tons of basic, at $19, and that March sales to date were at
the rate of 80 per cent of our approximate foundry furnace capacity.
He reported the tonnage of basic iron on the books to be 58,293 tons,
at the average price of $16,419; of foundry iron, 155,124 tons, at
$16,236; of rails, 207,202 tons, at $28.85; of steel scrap, 4,527 tons,
at $16.50; and of soft steel bUlets and blooms, 1,777 tons, at $33.71.
united states steel corporation. 4299
April 24, 1907.
Meeting of executive committee.
• The chairman presented a memorandum of pig iron, rails, and mer-
chant steel sold at average prices, showing orders on hand as follows :
Pig iron, 50,376 tons, at il6.184; foundry grades, 141,464 tons, at
$16,773; rails, 193,809 tons, at $28.84; merchant steel, 29,397 tons,
no average price given.
The chairman stated that the sales of rails for 1908 delivery, includ-
ing second quarter, amounting to approximately 50,000 tons, on the
basis of $30 per ton, had been consummated; that negotiations were
in progress for the sale of 25,000 tons additional. It was believed
that the Harriman interests were prepared to pay $29 for 50,000 tons
of raila, thus bringing up the question regarding the policy to be pur-
sued in regard to the maintenance of the $30 price for 1908. Action
was deferred.
On motion duly made and seconded, the foUowiag resolution was
adopted:
(323) Resolved, That the account of this company heretofore carried with the
National Bank of North America be discontinued and that the officers be, and they
are hereby, authorized to make the necessary arrangements for opening a new account,
to be carried with the Trust Co. of America, New York City.
May 21, 1907.
Meeting of executive committee.
The chairoaan submitted the customary statements, showing all
operations for the month of April and for the four months ending
April 30. Net earnings for the month amounted to $i91, 147.84, a
gain over the precediag month and the best record since 1904, and for
the four months amounted to $611,247.17, a gain of 35 per cent over
the corresponding period last year. The chairman stated that on pig
iron the company was sold up practically for the year 1907, the surplus
of unsold iron being estimated at only about 30,000 tons.
The chairman stated that negotiations with Mr. Atkinson, presi-
dent of the Atlanta, Birmingham & Atlantic Railroad had progressed
to the point where he was able to submit to, the committee Avith his
recommendation an outline of the proposed contract with the Atlanta,
Birmingham & Atlantic interests, securing, as he beHeved, material
advantages to this company in the way of traffic concessions, trackage
rights, and in solidifying our holdings of Pratt coal. After a brief dis-
cussion of the many points in the chairman's report, action was
deferred until the meeting to be held the following day.
May 22, 1907.
Meeting of executive committee.
The proposed agreement with the Atlanta, Birmingham & Atlantic
interests, which was under discussion at the meeting of the board held
May 21, was first considered. The chairman submitted the memo-
randum which had been agreed to and simed by himself and by Mr.
H. M. Atkinson, president of the Atlanta, Birmingham & Atlantic, for
an adjustment of the traffic and mineral interests, of the Birmingham
Southern Railroad, Tennessee Coal & Iron Railroad Co., Atlanta,
Birmingham & Atlantic Railroad, and Birmingham Iron Co. The
text of the memorandum is inserted herewith :
31572— No. 53, pt. 2—12 36
4300 UNITED STATES STEEL CORPORATION.
UEMOBANOUM.
As a result of our conference the undersigned will recommend to our respective
boards of directors the following:
An exchange of mineral lands, so as to block up the lands of our respective com-
panies, mineral rights to be exchanged acre for acre in accordance with pencil tracings
on maps submitted. Such exchange of minera.1 rights is not t» be concluded except
upon the approval by the parties hereto of the drilling records of two drill holes to be
sunk at such locations as may be best adapted to furnish information as to the thick-
ness of the seam covered by me exchange and as to the respective values of the lands
proposed to be exchanged.
The respective companies also to exchange surface where owned or the minerals,
the company owning the leased surface to equalize surface ownership by purchase
through such agencies as it may desire to employ, funds for that purpose to be placed
in escrow and me surface to be purchased to be selected by the company which is to
receive it and to be at such points and locations as will best protect the interests of the
party entitled to the purchase of the surface.
As soon after the completion of the drilling hereinbefore provided for as practicable
the exchange of lands shall be consiimmated, any further necessary contracts to that
end to be put in legal shape.
Each party as a part of the exchange is to waive any damage to the surface from
present or future miaing operations by the other party. The drawing of contracts
and approval of titles and similar details to be passed upon by the attorneys for the
respective parties.
A contract for 10 years to be made between the Birmingham Southern Railroad Co.
and the Atlanta, Birmingham & Atlantic Railroad Co. covering interchange of traffic
and reciprocal use of tracks; the traffic arrangement to be in accordance with memo-
randum attached hereto. The tracks over which each road is to grant running rights
to the other shall be in accordance with description and maps nereaf ter to oe fur-
nished. The valuation of the tracks so used is to be fixed and the compensation to
be paid by each road to the other is to be computed on the basis of interest at 5 per
cent per annum on the accrued valuation of the tracks to be used, interest and mam-
tenance to be prorated on a wheelage basis; balances to be settled at such dates as
may hereafter be agreed upon.
The use by each road of the tracks of the other to be subject to the reasonable reg-
ulations of the railroad company owning the tracks, it being imderstood that the
railroad company owning the tracks will have the preference m handling of its own
trains and suDJect to such preference, the trains of me other road to be handled with
all reasonable expedition.
Any increase m track facilities required by the joint use shall be valued m the
same manner as the original tracks and interest and maintenance on such additional
track facilities computed on a wheelage basis.
The Tennessee Co. to furnish the Atlanta, Birmingham & Atlantic Railroad Co. at
reasonable cost right of way through its property for the extension of the Atlanta,
Birmingham & Atlantic Railroad lines to Parkville and also, it not detrimental to
manufacturing operations, to furnish the right of way desired by the Atlanta, Birming-
ham & Atlantic at reasonable cost to its Bessemer property adjoining the Alabama Great
Southern Railroad tracks, the Atlanta, Birmingham & Atlantic to mmish at reasonable
cost sufficient right of way for double-track extension of the Birmingham Southern Rail-
road Co. tracks to the property known as the baseball park in the city of Birmingham,
provided such extension shall not be foimd by the engineers of the Atlanta, Birming-
ham & Atlantic Railroad Co. to interfere with its own requirements; the Tennessee
Co. to sell to the Atlanta, Birmingham & Atlantic Railroad Co. certain lands deeded
by it adjoining its Birmingham terminals. The valuations of said property and rights
of way to be fair as can be ascertained and to be mutually satisfactory.
The Birmingham Southern Railroad Co. is to extend its tracks to connect with the
Atlanta, Birmingham & Atlantic Railroad Co.
It is understood that the traffic and trackage contracts contemplated to be made
between the Birmingham Southern Raihwad Co. and tiie Atlanta, Birmingham &
Atlantic Railroad Co. are intended to apply only to the owners of tiie two railroads,
and while such contracts shall pass with tbe ownership of said roads they shall not be
BO assigned as to be separated from said ownership or to allow any other railroad com-
pany to participate therein.
It is further understood that whereas the Tennessee Co. owns a four-eighths interest
the Birmingham Iron Co. owns a three-eighths interest and the Mudd heirs an imdi-
vided one-eighth interest in the 320 acres of ore land.
UNITED STATES STEEL OOEPOEATION. 4301
The parties hereto will take such legal action jointly as will secure to them the
outstanding one-eighth interest to be acquired by them in the same proportion in
which they owpthe balance of the whole, and they will thereupon endeavor to ar-
range such division of the lands ia proportion to their respective interests as will be
most mutually advantageous.
If these recommendations are approved by our respective directors, final contracts
shall be drafted carrying out in gotxi faith the ideas contemplated herein aa speedily
as possible.
H. M. Atkinson.
John A. Topping.
May 17, 1907.
memorandum.
On carload business originating at points outside the switching zone and distant
from points on the lines of the party of the first part and which reaches Birmiagham
over the rails of the party of the second part, the following allowances are to be made
to the party of the first part out of the through rate from point of shipments:
When the Atlanta, Birmingham & Atlantic's proportion ia $2 per ton and less,
allowance to Birmiagham Southern to be 15 cents per ton.
Whea the Atlanta, Birmingham & Atlantic's proportion is $2.01 per ton and less
than $3, allowance to Birmingham Southern to be 20 cents per ton.
When the Atlanta, Birmingham & Atlantic's proportion is $3.01 per- ton and less
than $4, allowance to Birmiagham Southern to be 25 cents _per ton.
When the Atlanta, Birmingham & Atlantic's proportion is $4.01 per ton and over,
allowance to Birmingham Southern to be 30 cents per ton.
On all outbound carload business, except coal, originating at industries located on
the tracks of the party of the first part and by it delivered to the party of the second
part at the point of mtersection of the lines of the parties hereto and distant from
poinfB beyond the switching zone, the party of the second part agrees to make the
party of the first part an allowance of 25 cents per ton, subject to a minimum of $5
per car, absorbing the same in established through rates.
On coal for railroad use (except when for the party of the second part) or for com-
mercial use, which produces revenue earnings to the party of the second part, the
party of the first part ia to receive the foUowiag allowances out of the through rate
from point of origia:
When rate is 50 cents per ton and leas and not over 70 cents, allowance to be 15
cents per ton.
When rate is over 70 cents per ton and not more than $1, allowance to be 20 cents
per ton.
When rate ia over $1 and not more than $1.50 per ton, allowance to be 25 cents per
ton.
When rate ia over $1.50 per ton, allowance to be 30 cents per ton.
On carload tonnage originating and terminating withia the awitching zone ratea
are to be on the basia as mutually agreed upon, dividiag on the basis of 50 per cent
allowance to each of the lines party to this agreement.
On less-tiiaa-carload business, which would be assembled at the terminala of the
party 'of the second part and loaded onto a soUd car tor points on the line of the party
of the first part, the party of the first part is to receive $1 per ton as its compensation,
the party of the second part absorbing the same out of iixe throi^h rate.
In reply to an inquiry, the chairman explained that the proposed
agreement involved no preference m favor of the Atlanta, Birming-
ham & Atlantic in the custribution of tonnage and that our relations
with other connecting railroads in the district, therefore, would not
be prejudiced. After a very fuU discussion it was, on motion, made
and seconded,
(332) Resolved, That a contract with the Atlanta, Birmingham &
Atlantic Railroad interests along the lines indicated in the memo-
randum submitted to this meeting be approved, and that the chair-
man be, and he hereby is, authorized to execute such documents and
perform such acts as may be necessary to carry same into effect.
*******
The chairman stated in connection with the probable contract with
the Atlanta, Birmingham & Atlantic Railroad that he had recom-
4302 UNITED STATES SIEEL CORPORATION.
mended some changes in the method of accounting and conducting
traffic on the Birmingham Southern with a view to minimizing fric-
tion, centralizing jurisdiction and responsibiUty, and eliminating legal
comphcations by avoiding setting up a discriminative tariff and mov-
ing freight for this company at a less price per car movement than
would be charged outside shippers along the line of the Birmingham
Southern. The plan, briefly stated, was as follows:
(1) Lease all yards and tracks at operating points to the Tennessee
Canal & Iron Co., and also rent at a daily or monthly charge the
necessary locomotives to move the car eqmpment at each operating
point, placing each yard in the charge of a yardmaster, who would be
under the jurisdiction of the general superintendent operating, the
plant at the several points.
(2) The movement of cars covering near or outlying materials, so
far as it involves main-line movement, to be under the general super-
vision and direction of the general superintendent of the Buffalo &
Susquehanna Railroad, car movement on the main line to be charged
at the same rate as we would charge traffic movement to foreign
shippers.
He stated that the plan proposed was merely a detail of manage-
ment and that if no objection was made by the board the plan would
be made effective.
The chairman stated that there had been ordered from the Pressed
Steel Car Co. 200 steel cars for the Birmingham Southern Railroad,
and suggested that it might be a good idea to secure the formation
of a Car Trust through the buUders, to issue Car Trust certificates on
the equipment we have on contract. He stated that the matter had
been so far developed as to indicate the probabUity that we could
defer approximately one-half of the cost of the cars thus far ordered,
which would enable us, if it was thought advisable, 'to add further to
our steel railway equipment. As bearing on this point he stated
that the wooden cars owned by the Birnungham Southern had been
in service many years, and, being of Ught weight and construction as
well as old, their continued use in trains coupled with heavy steel
would increase wear and tear and reduce the life of the old equipment.
As a general proposition the suggestion was approved, and
(333) On motion, the chairman was instructed to carry his iqves-
tigation further with a view to presenting a definite proposition for
the future consideration of the board.
June 25, 1907.
Meeting of executive committee held.
Income account showed balance above all charges and deprecia-
tipn amountmg to $221,998.58, a gain of nearly $31,000 as compared
with April, and the best month recorded since 1903; surplus for the
five months ending May 31 amounted to $838,245.75 as compared
with $558,513.28 for the same period in 1906. The report was ordered
on file.
As a matter of information, the chairman presented a comparison
of earnings with the Sloss-Sheffield Steel & Iron Co. for the quarter
comprising the months of March, April, May, 1907 and 1906, showing
an increase in net earnings for the Tennessee Co. of 65 per cent as com-
pared with 56 per cent for Sloss.
united states steel ooepobation. 4303
June 25, 1907.
Meeting of executive committee held.
REPORT OF SALES OP PIG IRON AND AVERAGE PRICES.
This statement showed total sales of foundry iron on the books
151,686 tons, average furnace price $17.63, and of basic 75,203 tons,
at average furnace price of $17.97.
REPORT or COAL AND COKE SALES AND AVERAGE PRICES.
Total estimated tonnage booked for delivery prior to January 1,
1908: Coal, 807,165 tons, at average price of $1,502; coke, 94,500 tons,
at $3,764. There was also presented a memorandum of coal tonnage
sold and average prices for the y^ars 1902 to 1907, inclusive, showing
an increase from $1.21, the average price reaMzed in 1902, to $1.48,
being the average price for the first five months of 1907.
REPORT OF RAIL SALES AND AVERAGE PRICES.
Total tonnage on the books June 1, 416,846 tons, average price
$28.93, including both first and second quality. Based on the esti-
mated production to the end of the year 1908, an apparent surplus
is available for sale of upward of $30,000. The chairman stated that
it might be safe to consider we had from 40,000 to 50,000 tons to seU
for 1908 delivery. He advised that we are holding the price of rails
at $30 for standard sections to trunk fines and at $32 for street-car
use.
The chairman advised that a settlement had been made with the
Sloss-Sheffield Steel & Iron Co., under which the Tennessee company
was to have three-fourths of the output of the Champion mine and
the Sloss company the privilege of one-fourth, each company paying
the other 17^ cents per ton royalty for all ores shipped to the respec^
tive companies. It is further provided that the contract shall con-
tinue until the lands are exhausted, it being estimated that the mine
contains 1,000,000 tons of high-grade brown ore. By resolution 342
the contract was confirmed.
July 26, 1907.
Meeting of executive committee held.
The chairman presented report for the month of June showing net
earnings of $180,283.49. Commenting on this report, the chairman
said that he considered it very disappointing and that there had been
food reason to expect that the earnings should have equaled those of
lay. Net earnings for the six months ending June 30 aggregate
$1,013,539.94, or about 64 per cent in excess of the same period in
1906.
Commenting on general market conditions, the chairman stated
that pig iron sales have been of insignificant volume, but owing to our
previous heavy bookings, the furnaces were stiU well behind on ship-
ments. The total tonnage on the books July 1 amounted to 132,491
tons of foundry and mill grades at average price of $17.91, and 157,860
tons of basic at $17.96.
The rail situation was badly congested owing to the small produc'
tion. The unshipped balance'on the books amounted to 408,877 tons
4304 UNITED STATES STEEL COEPOBATION.
at the average mill price of $28,94. He also reported that he had on
the books orders for nearly $8,000 of steel scrap at average price of
$16.06.
Finandal estimate of resources and requirements to Jan. 1, 1908.
EEQtriRBMENTS.
Total unexpended balance of all appropriationfl based
on auditor's statement of June 1, and including $945,-
000 appropriated at executive meeting June 23 $4, 583, 718. 00
Bills payable, viz:
dhase National Bank $200, 000. 00
Southern banks 150, 000. 00
Republic Iron & Steel Co 100, 000. 00
Miscellaneous notes 247, 380. 00
Dividends:
Due Aug. 1 261,817.00
Due Nov. 1 296, 000. 00
697, 280. 00
557, 817. 00
Balance due on ferro purchase 43, 000. 00
Accrued interest on second stock subscription (due
Sept. 10) 34, 000. 00
Total requirements $5, 915, 815. 00
Resources.
Stock subscription due Sept. 10 850, 000. 00
Estimated earnings July-Dec, including $200,000 per
month 1, 200, 000. 00
Cash and resources as of July 1 1, 120, 863. 00
3,170,863.00
Apparent deficit to Jan. 1 2, 744, 952. 00
Compared with previous statement 1, 271, 756. 00
1, 473, 196. 00
Difference accounted for as follows:
Additional appropriations for construction 945, 000. 00
Construction expenditures subsequent to Jan. 1, 1908 435, 753. 00
Replacement and miscellaneous items not included in previous
estimate 86, 039. 00
Total (compare difference above) 1, 466, 792. 00
Apparent deficit Jan. 1 2,744,952.00
Add: No. 3 blast furnace $275,000.00
New boilers, Ensley blast furnaces 80, 000. 00
New stoves. No. 2, blast furnace, Ensley 150, 000. 00
No. 6} slope, Red Mountain 65, 000. 00
B . S. track extension to connect A. B. & A. from Thomas,
together with additional ore yards 200, 000. 00
Probable cost oiir proportion (| of \ interest) in Mudd
ore lands 100, 000. 00
870,000. 00
Total amount required 3, 614, 952. 00
The chairman stated that he believed it was absolutely imperative
to make some definite provision for additional money within the
very near future. After discussion the resolution adopted at the
meeting of June 25, providing for the offer to stockholders of the
right to subscribe to 15 per cent of the holdings in new stock was
UNITED STATES STEEL OOEPOEATION. 4305
reconsidered and in its place the following resolution was duly
adopted:
Resolved, That a committee of three, consisting of Messrs. Schley,
Hanna, and Oglebay, be appointed, with power to make such arrange
ments as in their judgment may seem necessary for the increase of
the capital stock of the company and to arrange for necessary
details for the calling of subscriptions for the same, such committee
to take action within 10 days of the date of this meeting.
August 21, 1907.
Meeting of executive committee held.
The chairman presented a regular treasurer's statement for the
month of July showing net earnmgs of $220,196.90, a gain as com-
pared with June of approximately $400,000. Commenting on the
report he stated that he considered it disappointing, both as to cost
and product in the manufacturing departments. Bearing on the
subject he presented a statement of accidents and delays to furnaces
dunng the month, but remarked, that while these contributed to the
poor showing, nevertheless the results at the Ensley furnaces in
Particular were not as good as the management had reason to expect,
[e also presented a statement prepared by Mr. Greene commenting
on costs at Ensley and analyzing the variations as compared with
the results of general operations.
As a matter of information, the chairman informed the board
that he was in possession of official cost figures for other furnaces in
the southern district, all of which were considerably in excess of our
own, ranging from $15 to $17 per ton. Allowing for difference in the
cost of material, transportation charges, etc., our practice appeared
to be about 60 cents a ton.
Shipments of pig iron amounted to 224,000 tons, as compared with
187,000 tons last year, at average price of $15.97, as compared with
$12.99. Total pig-iron orders on hand are as follows: Fourty-seven
thousand three hundred and twelve tons of basic at $17.87, 113,648
tons of foundry at $17.99, representing substantially the full
capacity of our furnaces to the end of the year. Rail orders on the
books amounted to 401,345 tons, the mill being over 80,000 tons
behind on its deliveries.
The chairman brought up a subject previously discussed by the
committee, namely, that of a revaluation of our mineral properties
as bearing, first, on the amount of replacement and extinguishment
fund to be set up monthly against our operations, and, further^ as
discussed in a previous meeting, by establishing a surplus against
which might be charged the necessary depreciation which will
result from the reconstruction of our iqanufacturing properties.
He believed that such action would be wise. And he therefore
recommended the appointment of Mr. Dickson, of Dickson, Wilmot
& Sterret, and Mr. T. W. Aldrich. In his opinion, Mr. Aldrich's
standing as an engineer and operator and in the community, his long
famUianty with the mineral lands of the Birmingham district, and
the fact of his having formerly served in behalf of this company on
the commission of appraisal selected by the Republic, Sloss, and
Tennessee companies, well qualified him in the premises. The com-
mittee acquiesced in the view of the chairman; and accordingly.
4306 UinTED STATES STEEL COBPOBATIOH.
(363) On motion, the chairman was authorized to appoint a com-
mittee to investigate and submit a report to this committee upon the
mineral holdings of this company, with their recommendation as to
such changes as might conservatively be made in our book values,
taking into consideration the appreciation in mineral values which
has taken place during the last 10 years.
The question of financing was introduced and reference was made
to correspondence which had taken place between the chairman and
Mr. Schley, copies of which have already been brought to the notice
of the other members of the committee, relative to deferring the call
for subscriptions to new stock from August 15, the date originally
contemplated, until some time later in October, and the necessity, in
view of this change, of negotiating additional short-time accommo-
dations. The committee appointed at the meeting of July 26, con-
sisting of Messrs. Schley, Hanna, and Oglebay, was continued with
full power; and
(364) On motion, the chairman was authorized to negotiate with
the Republic Co. for such loans as could be secured from them on
the basis of 7 per cent and the deposit of proper collateral to protect
such loans, if necessary.
October 3, 1907.
Meeting of executive committee held.
The chairman submitted the regular treasurer's statement for the
month of August showing net earnings above all charges of $140,789.79,
a decrease of $80,000 as compared with the preceding month.
The chairman introduced the subject of necessary financing, which
must necessarily come up for immediate attention in view of our
large and rapidly maturing requirements, both for construction and
for our borrowed money. He presented to the meeting a financial
forecast prepared by Mr. W. A. Green, treasurer, for the month of
October ; likewise condensed statement prepared by Mr. Green, show-
ing estimated construction requirements by months up to May 31,
1908. There was also presented to the meeting a financial estimate
prepared by the secretary of the executive committee, based upon
the foregoing information, showing estimated deficit to January 1,
1908, of $851,000, and surplus to May 1, 1908, of $346,000, which is
appended hereto.
Tennessee Coal, Iron & Railroad Co., estimate of resources and requirements as of Od.
S, 1907.
Total unexpended balance of all appropriations, June
1, 1906, as per statement of W. D. Truesdale, auditor:
Construction $3, 809, 805. 47-
Birmingham Southern , 240, 263. 35
Miscellaneous, land department 10, 557. 48
80 steel cars 98, 960. 00
— $4, 159, 586. 30
Add appropriations subsequently passed:
Meeting of June 25 945, 000. 00
Miscellaneous minor items 36 612 26
— — 983, 612. 26
Total 5,143,198.56
Less construction ehaiges since June 1, viz:
June 1-Aug. 31, inclusive (per plans issued) 1, 803, 800. 64
September, estimated 700, 000. 00
2,503,800.64
UNITED STATES STEEL COKPOEATION. 4307
Balance to be expended, estimated as of Oct. 1, 1907 $2, 639, 397. 92
Balance to be expended, estimated by W. A. Green, treasurer 2, 654, 000. 00
Balance to be expended prior to Jan. 1 1, 631, 000. 00
Bank loans:
Chase $200,000.00
First National, Birmingham 100, 000. 00
Birmingham Trust & Savings Co 50, 000. 00
Trust Co. of America 100, 000. 00
Republic Iron & Steel Co 300, 000. 00
Commercial paper outstanding 500, 000. 00
Total borrowed money 1, 250, 000. 00
Dividends Nov. 1 300, 000. 00
3, 181, 000. OO
Cash on hand 400,000.00
Stock subscription, two installments 1, 480, 000. 00
Earnings, three months, at $150,000 450, 000. 00
2,330,000.00
Deficit Jan. 1 851,000.00
Balance of construction after Jan. 1 1, 023, 000. 00
Total next year 1, 874, 000. 00
Stock subscriptions next year, balance 2, 220, 000. OO
Surplus 346, 000. OO
After consideration of the foregoing estimate of receipts and
requirements, and of general financial conditions, on motion of Mr.
Schlev, seconded by Mr. Hanna, the following resolutions were unani-
mously adopted:
(383) Resolved, That an issue of common stock amounting to 12J
Eer cent of the issued and outstanding capital stock of this company
e, and the same is hereby, authorized ; and further
(384) Resolved, That the stockholders of record on October 10, 1907,
be given the privilege, to expire at 3 o'clock p. m. October 5, 1907,
of subscribing for new stock equal at par to 12| per cent of the par oi
stock held by them, respectively, at the price of $100 per share.
October 23, 1907.
Meeting of executive committee held.
The chairman submitted partial results of operating for the month
of September, completed statements not having been received from
the treasurer. Net earnings amounted to $107,766.35, a loss of
$33,000 as compared with August.
Notice was officially given of the consummation of a loan of $200,000
from the Superior Savings & Trust Co., of Cleveland, Ohio, for four
months, at 6 per cent per annum, secured by deposit of $220,000 of
our Alabama Steel & Shipbuilding Co. treasury bonds. The chair-
man advised that inasmuch as it was not expected that this money
would remain on deposit, no provision had been made for the payment
of interest on current balances. This action was ratified and
approved.
November 6, 1907.
Meeting of executive committee held.
The chairman stated that the meeting was called f6r the purpose
of considering the tender by the United States Steel Corporation to
4308 UNITED STATES STEEL COEPOBATION.
purchase the majority interest in stock from the individual stock-
holders holding control of the capital of this company, the basis of
which is set forth in circular letter prepared by the chairman, which
is hereto annexed and made part of these minutes.
Notice to stockholders:
A sale of the majority interests of the capital stock of this company has been con-
summated with the United States Steel Corporation, the basis of which is that our
majority stockholders agree to accept United States Steel sinking fund 5 per cent
second-mortgage bonds at 84 in exchange for their stock at par, which will give you
approximately $119 in bonds for $100 of stock. An option is extended to you of sell-
ing your interest on this basis, option expiring November 21, 1907. If you desire to
participate you should immediately place your stock in the hands of Messrs. J. P.
Morgan & Co., who have been authorized to carry out the details of the .exchange of
securities.
Respectfully, Tennessee Coal, Iron & Railroad Co.,
John A. Topping, Chairman.
On motion of Mr. Gates, it was unanimously
(388) Resolved, That the chairman be, and he hereby is, authorized
to mail to each of the stockholders of the company a copy of the
above notice in form as presented, on receipt of notice of formal
ratification by the board of directors of the United States Steel
Corporation.
Aojeement made this 6th day of November, 1907, by and between the undersigned
stockholders of the Tennessee Coal & Iron Railroad Co., parties of the first part, here-
inafter called the "first party," and the United States Steel Corporation, a corpora-
tion organized and existmg under the laws of the State of New Jersey, party of the
second part, hereinafter called the "second party," witnesseth:
That in consideration of the mutual agreements hereinafter contained and of the
sum of $1 in hand paid by each of the parties to the other, the receipt whereof is hereby
acknowledged, it is mutually covenanted and agreed as follows:
If on or before November 11, 1907, the first party shall sell and deliver or procure
the sale and delivery to the second party or to J. P. Morgan & Co., as agents of the
second party, of all or any part of the shares of the common stock of the Tennessee
Coal, Iron & Railroad Co., a corporation organized and existing under the laws of the
State of Tennessee, but not less than a majority of all such shares now issued and out-
standing, or heretofore by the board of directors authorized to be issued, to wit,
133,334,065, the second party will issue to the respective vendors thereof, or for their
account, as may be directed by them in writing, bonds of the United States Steel
Corporation known as 10-60 year 5 per cent sinking fund gold bonds issued under
the indenture dated April 1, 1903, between the United States Steel Corporation and
the United States Trust Co. of New York, at the rate of $11,904.76 par value of said
bonds for each 100 sharefc of stock of the par value of $10,000 so delivered. Such
stock of the said Tennessee Coal, Iron & Railroad Co. must carry all dividends and
all rights to dividends declared or payable after November 5, 1907. Subscription
certificates for stock paid or partly paid for shall, on the basis hereof, be taken as stock
at the face value of the amount therein sta,ted as having been paid thereon.
Second. If on or before No-\ember 11, 1907, there shall have been sold and deliv-
ered to the second party not less than a majority of the shares of the capital stock
issued and outstandmg and heretofore by the board of directors authorized to be issued
of the said Tennessee Coal, Iron & Railroad Co., then and in that event, if on or before
November 21, 1907, any person or persons being the owner or holder thereof shall
offer to sell and deliver to the second party shares of the capital stock of the said Ten-
nessee Coal, Iron & Railroad Co., and shall tender the same, properly indorsed, to
the second party or to J. P. Morgan & Co., as agents for the second party, the second
party will purchase the same and in payment and consideration therefor will issue
Its 10-60 year 5 per cent sinking fund gold bonds at the rate aforesaid; and the party
of the first part will use all reasonable efiorts to induce the other stockholders of the
Tennessee Coal, Iron & Railroad Co. also to sell and deliver their shares to the United
States Steel Corporation on these terms.
Third. The coiliiition of the said Tennessee Coal, Iron & Railroad Co., as of Sep-
tember 30, 1907, is set forth with substantial accuracy in its balance sheet of that
date, as exhibited by Mr. Topping to the second party, and no change has been made
tJNITED STATES STEEL OOEPOBATION. 4309
in said assets and liabilities since September 30, 1907, except such change as has
been required by the ordinary operations of the business of said railroad company or
the continuance of its construction work, and such changes as have resulted from
the payment by subscribers of 20 per cent of the subscription price of the stock sub-
scribed for by them, amounting in the aggregate to a par value of $3,224,937.
Fourth. The total aggregate par value of the stock now issued and outstanding
does not exceed $29,429,185, and that in addition to the said amount there has not
been authorized to be issued by the board of directors more than $3,750,000 par value,
of which $3,224,937 has been subscribed for, and these conditions shall not be changed
pending the consummation of the sale herein contemplated.
In witness whereof these presents have been duly executed by the parties hereto
the day and year first above written.
[seal.] United States Steel Corporation,
By E. H. Gary, Chairman.
Attest:
Richard Trimble, Secretary.
Original agreement signed on behaK of first party by J. B. Schley, L. C. Hanna,
J. W. Gates, E. W. Oglebay, J. A. Topping.
UNITED STATES STEEL PRODUCTS EXPORT CO. (EMPIRE
RAIL CO.).
The operations of this company can be illustrated by its income
and charges for the year of 1910.
Income:
Commisgions received from subsidiary companies account, exports,
sales $516, 636. 42
Interest and discount 36, 358. 19
Miscellaneous income 42, 906. 81
Foreign exchange, adjustment account 23, 701. 12
Commissions on pig tin purchases and palm oil purchases 12, 447. 38
Freight venture, chartered steamers 225, 709. 83
857, 759. 75
Charges:
Operating expenses, administrative and selling — 771, 767. 22
Provision for contingent fund and unaudited liability 50, 000. 00
Employees bonus fund 39, 695. 00
Taxes, State and local 3, 446. 65
864, 908. 87
Showing a deficit on the year, of 7, 149. 12
A certificate of amendments to the certificate of incroporation,
dated October 6, 1903, is attached to the minutes.
The Empire Rail Co. was incorporated November 9, 1898, with a
capital stock of $1,000,000, divided into 10,000 shares of $100 each.
The certificate of incorporation was amended so as to state the
name of the corporation as the United States Steel Products Export
Co. The objects of the corporation are "To mine and manufacture
metals and minerals; to manufacture, purchase or otherwise acquire,
to hold, own, manage, pledge, seU, assign, and transfer or otherwise
dispose of, to invest, trade, deal in, and deal with goods, wares, and
merchandise and property of every class and description made wholly
or in part of iron, steel, or other metals; to enter into, make, per-
form, and cany out contracts of every land with any person, firm,
association or corporation; to have one or more offices; to carry on
all or any operations or of its operations and business and unlimitedly
and without restriction to hold, purchase, mortgage, lease, and con-
vey real and personal property in any State or Territory or depend-
ency of the United States and in any foreim country or place."
The certificate changing the name from Empire Rail Co. to United
States Steel Products Export Co. was filed October 6, 1903.
November 10, 1903.
Annual meeting of stockholders was held and the following direct-
ors were elected: J. A. Farrell, Edward Worcester, H. P. Bope,
E. H. Gary, W. E. Corey, Thomas Murray.
4310
UNITED STATES STEEL. COKPOKATIOK. 4311
The certificate of incorporation was amended August 1, 1910. The
certificate reads in part as follows :
Third. The objects for which the corporation is formed are to do any and all of the
things herein set forth to the same extent as natural persons might or could do and in
all parts of the world.
To trade in steel products and all other kinds of goods, wares, and merchandise, in
all partsof the world, and to buy, sell, and in every manner deal in and with such
commoditieB and other property of every class and description.
To manufacture iron, steel, manganese, coke, copper, lumber, and -other materials
and all or any articles consisting of or partly consisting of iron, steel, copper, wood, or
other materials, and all or any products thereof.
To acquire, own, lease, occupy, use, or develop any lands containing coal or iron,
manganese, stone, or other ores, or oil and any woodlands or other lands for any purpose
of the company.
To mine or otherwise to extract or remove coal, ores, stone, and other minerals and
timber from any lands owned, acquired, leased or occupied by the company or from
any other lands.
To construct bridges and buildings and public and private works and improvemenfa
of every kind, machinery, ships, boats, engines, cars, and other equipment, railroads,
docks, slips, elevators, waterworks, gas works, and electric works, viaducts, aquedujcts,
canals and other waterways and any other means of transportation, and to sell the same
or otherwise to dispose thereof or to maintain and operate the same, except that the
company shall not maintain or operate any railroad or canal in the State of New Jersey.
To apply for, obtain, register, purchase, lease, or otherwise to acquire, and to hold,
use, own, operate, and to sell, assign, or otherwise dispose of any trade-marks, trade
names, patents, inventions, improvements, and processes used in connection with or
secxu:ed under letters patent of the United States or elsewhere, or otherwise, and to use,
exercise, develop, grant licenses in respect of or otherwise to turn to account any such
trade-marks, patents, licenses, and processes and the like, or any such property or rights.
To engage in any other manufacturing, mining, construction, or transportation busi-
ness of any kind or character whatsoever, and to that end to acquire, hold, own, dis-
pose of any and all properties, assets,- stocks, bonds, and rights of any and every kind;
but not to engage in any business hereunder which shall require the exercise of the
right of eminent domain within the State of New Jersey.
To acquire by purchase, subscription, or otherwise, and to hold, use, sell, or other-
wise dispose of stocks, bonds, or any other obligations of any corporation formed for or
engaged in or pursuing in any one or more of the kinds of business purposes or objects
or operations above indicated or owning or holding any property of any kind herein
mentioned or of any corporation owning or holding stocks or obligations of any such
■corporation; to aid in any manner any corporation whose stock, bonds, or other obliga-
tions are held or in any manner guaranteed by the company, and to do any other acts
or things for the preservation, protection, improvement, or enhancement of the value
of any such stock, bonds, or other obligations, or to do any acts or things designed for
any such purpose; and while the owner of anj' such stock, bonds, or other obligations,
to exercise all ' the rights, powers and privileges of ownership thereof and to exercise
any and all voting power thereon.
The, business or purpose of the company is from time to time to do any one or more
of the BiCts and things herein set forth, and'it may conductits business in other States
and in the Territories and in foreign countries and may have one office or more than one
oiBce and keep the books of the company outside of the State of New Jersey, except
as otherwise may be provided by law, and may hold, purchase, mortgage, and convey
real and personal property either in or out of the State of New Jersey.
Without in any particular limiting any of the objects and powers of the corporation,
it is hereby expressly declared and provided that the corporation shall haVe power to
issue bonds and other obUgations in paynjent for property purchased or acquired by
it or for any object in or about its business; to mortgage or pledge any stocks, bondsor
other obligations, or any property which may be acquired by it to secure any bonds
or other obligations by it issued or incurred; to guarantee any dividends or bonds, or
contracts or other obllgatione; to make and perform contracts of any kind and de-
scription; to guarantee any dividends or bonds or contracts or other obligations; to
make and perform contracts of any kind and description; and in carrying on its busi-
ness or for the purpose of attaining or furthering any of its objects to do any and all
other acts and things and to exercise any and all other powers which the copartnership
or the natural person could do and exercise and which now or hereafter may be author-
ized by law.
4312 united states steel. corporation,
October 7, 1903—2.30 p. m.
Meeting of board of directors held.
Present: William FiUingham, Kenneth K. McLaren, Harry W.
MiUer.
The president reported the certificate of amendment with the
assent of the stockholders changing the name of this company and
otherwise amending the certificate of incorporation had been filed
in the office of the secretary of state of the State of New Jersey
according to law.
The president then presented the resignation of Mr. FiUingham as
secretary and as director of the company, to take effect at the close
of this meeting, and stated that Mr. FiUingham had this day trans-
ferred 10 shares of stock held by him as follows: To wit: Five shares
to J. A. Farrell and one share to each of the following gentlemen:
H. P. Bope, Thomas Murray, E. H. Gary, W. E. Corey, and E. C.
Worcester.
Mr. J. A. Farrell was elected president.
March 22, 1904.
Meeting of board of directors held.
Frank Kellog Smith was appointed manager of the office at
Johannesburg, Transvaal.
Mat 25, 1904.
Meeting of board of directors held.
The president was authorized to execute powers of attorney to
such persons as he may deem necessary to execute papers for customs
offices.
Whereas it is deemed advisable for the convenient and effectual transaction of the
customs business of the United States Steel Products Export Co. to appoint for any port
and collection district of the United States an attorney who shall nave authority to
receive and enter at the customhouBe at such collection district any and all goods,
wares, and merchandise hereafter imported by said corporation or which may here-
after arrive consigned to said corporation; to sign the name of said United States
Steel Products Export Co. to and to seal and deliver for and as the act and deed
of said corporation any bonds which may be required to secure the payment of
duties and other charges on any and all goods, wares, and merchandise; to sign
the name of said corporation to and seal and deliver for and as the act and deed of
said corporation any and all bonds requisite or necessary for obtaining the de-
benture and drawback on any and all goods, wares, and merchandise hereafter
exported by said United States Steel Products Export Co., and to receipt for de-
benture certificates and to collect the amount due thereon; to sign the name of said
corporation to and to seal and deliver for and as the act and deed of said United States
Steel Products Export Co. any and all other bonds which are or may be required by
the customs laws and regulations issued in pursuance thereof and any and all bonds
which may be voluntarily given and accepted in customs procedure; and generally
to transact at the said customhouses any and all customs business in which said
United States Steel Products Export Co. ia or may be interested or concerned and
which may properly be transacted or performed by attorneys: Now, therefore, it is
hereby
Resolved, That the president of this company be, and he is hereby, authorized on
behalf of this corporation and as its act and deed to execute such power of attorney
for the ports and collection districts of the United States within flie United States
as in his opinion is or may be necessary or proper to carry into effect the purposes
and objects set forth in the foregoing preamble, said power of attorney to nav?
affixed to it the corporate seal of said corporation duly attested by the secretary of
said corporation.
united states steei, coepobation, 4313
October 31, 1904.
Meeting of board of directors held.
Reference is made to Johannesburg, Transvaal, business; and the
supplying of the structural steel and ornamental ironwork for the
headquarters of the fire department of Eio de Janeiro, Brazil, for
$11,587; and work in connection with the Hedgoz EaUway Commis-
sion, Constantinople, Mr. A. Roviti being appomted attorney.
December 15, 1905.
Meeting of board of directors held.
A meetmg of the board of directors of the United States Steel Prod-
ucts Export Co. was held in the Empire Building, in the city of
New York, on Friday, December 15, 1905, at 2.30 o'clock p. m., pur-
suant to due notice.
There were present the following directors: E. H. Gary, W. E.
Corey, H. P. Bope, Thomas Murray, being a quorum of the board.
In the absence of the president, Mr. E. H. Gary acted as chairman of
the meeting.
On motion duly seconded the following resolutions were unani-
mously adopted:
Whereas this board has this day been informed that Mr. T. P. Alder and Mr. A. P.
Mack, have been subpoenaed to appear before the grand jury in the United States
District Court for the Northern District of Illiuois to testify concerning certain
alleged illegal transactions between this company and the Chicago, Burlington &
Quincy Railroad Co., and to produce papers and documents relating thereto; and
Whereas the United States Steel Products Export Co. is -wTlling that all evidence,
documentary or otherwise, in its possession relating to the said transactions shall be
freely produced, either to the grand jury or to the United States district attorney,
without requiring resort to legal process therefor; be it
Resolved, That Mr. T. P. Alden andlilr. A . F. Mack be, and hereby they are, instructed
to produce on behalf of this company any and all evidence, documentary or otherwise,
in the possession of this company or any of its officers or employees, concerning the
transactions between this company or any of its officers or employees concerning
transactions between this company and the Chicago, Burlington & Quincy Railroad
Co. which may be desired by the grand jury or by the United States district attorney.
FEBEtTART 6, 1906.
Meeting of board of directors held.
Mr. Alberto Baer was appointed exclusive selling agent in Turin,
Italy.
February 19, 1907.
Meeting of board of directors held.
LUTHER p. FRIESTEDT, CONTRACT WITH CARNEGIE STEEL, AMERICAN
BRIDGE, A. & P. ROBERTS, ILLINOIS STEEL, INDIANA STEEL, AND
UNITED STATES STEEL PRODUCTS EXPORT CO.
The president submitted to the board a form of contract with
Luther r. Friestedt to be executed by the Carnegie Steel, American
bridge, A. & P. Roberts, Illinois steel, Indiana steel, and the United
States Steel Products Export Co., wherebv Friestedt grants to this
company the right to manufacture and sell sheet piling constructed
under any or all patents of the said Luther P. Friestedt.
4314 united states steel cobpokation.
November 8, 1907.
Meeting of board of directors held.
]\Ir. Frank Kellog Smith was appointed the agent of the company
in Johannesburg, South Africa, and Mr. Alfred Edward Newson, the
agent of the company at Cape Town, South Africa; and Mr. Benjamin
Peter Northrup at Valparaiso, Chile, with powers covering the Repub-
lics of Chile, Peru, Bolivia, and Ecuador.
April 20, 1908.
Meeting of board of directors held.
Mr. WQham Hendrick A^ton Olthoff was appointed the agent of
the company in Batavia, Java.
November 6, 1908.
Meeting of board of directors held.
Mr. Henry Llewellyn Jones was appointed the agent of the company
in the Chinese Empire (including Manchuria, Kiao Chao, and all other
territories of China in the occupation of or leasing to foreign powers),
the colonies of Hongkong and Macao, the Empire of Korea, and the
Philippine Islands. Mr. Charles W. Landis was authorized to make
proposals and contract with the provincial consul of Ferrara, Italy,
tor two bridges upon the River Po. Mr. Benjamin Peter Northrup
was authorized to sign contracts on behalf of the company in Bohvia,
Ecuador, Peru, and Chile. Mr. Vittoria Zeggio was authorized to make
contracts, etc., with the provincial consui of Ferrara, Italy, for
the erection of two bridges upon the River Po. Mr. H. A> Souther
was empowered to make bids and to enter into contracts with the
Mexican Government on behalf of this company. Balmer, Lowrie
& Co., Calcutta, India, were authorized to execute a contract with
the corporation of Calcutta for the erection of a steel-tank reservoir.
November 8, 1909.
Meeting of board of directors held.
Agents were appointed as follows:
Mr. James Wesley Galagher was authorized to sign contracts on
behalf of the company withm the Chinese Empire (including Manchu-
ria, Eaao Chao, and aU other territories of China in the occupation or
lease to foreign powers), the colonies of Hongkong and Macao, the
Empire of Korea, and the Philippine Islands. Mr. William Henry
Dietrich was also empowered to make contracts in the same territory.
March 16, 1910.
Meeting of board of directors held.
The president reported to the board that in the conduct of the busi-
ness of the company in Chile and Peru it had been found necessary to
five the representatives of the company in those countries somewhat
roader powers than had been customarily given to other commercial
representatives. He submitted proposed powers of attorney for Mr.
Benjamin P. Northrup, authorizing him to represent the company in
Chile and Peru, and stated that these powers had been originally pre-
pared by the Chilean and Peruvian attorneys and subsequently sub-
mitted to and approved by the general solicitor and the Chilean and
Peruvian consuls. The consuls called attention to the fact that under
the laws of those countries there would be required a resolution of the
UNITED STATES STEEL CORPORATION. 4315
board of directors authorizing the president to execute these powers
of attorney conferring upon Mr. Benjamin P. Northrup the authority
therein set forth, and submitted a form for such resolutions in accord-
ance with the laws of those countries. Thereupon, on motion regu-
larly made and seconded, it was duly and unanimously resolved to
confer upon the president of the company fuU power to represent the
company in all negotiations which may be conducted in Chile and
Peru with relations to the sale of the products of the Carnegie Steel
Co., Illinois Steel Co., American Steel & Wire Co., American Sheet &
Tin Plate Co., American Bridge Co., National Tube Co., Loraine Steel
Co., and Tennessee Coal, Iron & RaUroad Co. At the same time he
is empowered to appoint representatives in these countries and to
delegate to them the powers which he considers necessary tO fuUy
execute their duties, and to this effect to confer upon them special
powers.
July 20, 1910.
Meeting of board of directors held.
Resolution to amend certificate of incorporation.
The capital stock was increased from $300,000 to $1,000,000.
November 15, 1910.
Meeting of board of directors held.
Mr. H. L. Van Trees was appointed agent at Rio de Janeiro, Brazil.
Mr. F. Wilkinson was appointed agent at Vancouver, British
Columbia.
January 27, 1911.
Meeting of board of directors held.
Mr. George Ewart Yeatman was appointed agent in British India.
March 15, 1911.
Meeting of board of directors held.
A branch of the company was established in Buenos Aires.
(The last meeting extracted was that of June 21, 1911.)
31572— No. 53, pt. 2—12 37
UNIVERSAL PORTLAND CEMENT CO.
MiNXTTES OF Board of Directors from July 16, 1906, to June 8,
1910, AS Extracted.
The company was incorporated July 16, 1906, with a capital stock
of $1,000,000, divided into 10,000 shares of $100 each.
The by-laws provide for an executive committee and give to the
executive committee certain powers in managing the busmess. The
by-laws. Article VIII, section 2, provide:
"2. The executive committee shall cause to be kept a record of its
proceedings, which shall be read at all meetings of the directors for
their information, and shall at all times be subject to the inspection
of the board of directors."
September 28, 1906.
Meeting of board of directors held.
In consideration of the transfer of cement property and plants of
the Illinois Steel Co., the Universal Portland Cement Co. delivered
its own capital stock to the Illinois Steel Co., to wit, 11,000,000 worth.
June 19, 1908.
Meeting of board of directors held.
Resolved, That until further order of the board of directors Mr.
E. E. Stone be, and he hereby is, authorized to purchase for and on
behalf of this company spelter, copper, and lead in such amounts
and at such prices as he, in his discretion, may determine.
Dividend of $1,132,933.80 to be divided pro rata among the stock-
holders.
sale to ILLINOIS STEEL CO. OF PLANTS 1, 2, 3, AND 4, AND CANCEL-
LATION OF LEASES.
Resolved, That this company grant, bargain, and sell, convey, and
deed to the Illinois Steel Co. its cement plants known as No. 1, No. 2,
No. 3, and No. 4, and surrender and cancel the leases which it holds
from the Illinois Steel Co. of the lands upon which said cement plants
No. 1 and No. 2 are situated for a consideration of $1,000,000, and
that the officer of this company enter into and execute all proper
contracts, bills of sale, deeds, and documents to carry into eflFect this
resolution.
LEASE FROM ILLINOIS STEEL CO. OF PLANTS NOS. 2, 3, AND 4.
Upon motion, duly made and seconded, the following resolution
was unanimously adopted:
Resolved, That the officers of this company are hereby authorized
and directed to execute a lease with the Illinois Steel Co., leasing
from that company cement plants No. 2, No. 3, and No. 4 for an
4316
UNITED STATES STEEL, CORPOEATION. 4317
annual rental of 80 per cent of the net income of this company after
it shall have paid all taxes and expenses in the maintenance and
operation of all its plants and after it shall have set aside out of its
profits the quarterly sum of $25,000 for its own use, which said lease
shall be in the form now here presented to this meeting.
Upon motion, duly made and seconded, the foUowmg resolution
was unanimously adopted:
Resolved, That the officers of this company are authorized and
directed to execute a lease with the Carnegie Steel Co., leasing from
that company the plant for the manufacture of Portland cement
fromblast-fumace slag, lately erected and completed at the request
of this company, for an annual rental of 20 per cent of the net income
of said Universal Portland Cement Co. after it shall have paid the
sum of $25,000 for its own use, which said lease shall be in the form
now here presented to this meeting.
Meeting of board of directors held.
DIVIDEND.
November 14, 1908.
Seven and one-half per cent upon the capital stock payable Novem-
ber 16, 1908.
March 10, 1909.
Meeting of board of directors held.
DIVIDEND.
Two and one-half per cent payable March 11, 1909.
June 9, 1909.
Meeting of board of directors held.
Contract between Illinois Steel Co., Chicago, Lake Shore & Eastern
Railway Co. and this company for right to use tracks, etc., at Buffing-
ton, Ind.
July 28, 1909.
Meeting of board of directors held.
DIVIDEND.
Five per cent upon capital stock, and thereafter quarterly dividend
of 2i per cent is to be declared.
June 8, 1910.
Meeting of board of directors held.
Contract with Illinois Steel Co., modifying lease dated January 1,
1908, by changing the rental from 80 per cent to 60 percent; other-
wise the lease to remain in fuU force and effect.
Contract with Carnegie Co., modifying lease dated January 1, 1908,
by changing rental from 20 per cent to 40 per cent; the lease other-
wise to rem'ain in full force and effect.
TRENTON IRON CO.
Minutes of Board of Dieectoes from September 15, 1889, to
March 21, 1911, as extracted.
March 1, 1904.
Meeting of board of directors held.
It was stated that the company owns a controlling interest in the
MetropoHtan Fireproofing Co.
July 27, 1904.
Meeting of board of directors held.
It was stated that the company had sold stock in the Metropolitan
Fireproofing Co. to Erskine Hewitt.
April 17, 1905.
Meeting of board of directors held at 71 Broadway, New York.
The president reported to the board that at July 1, 1904, the date
at which the present management took charge of the company, the
books showed a profit and loss surplus of $160,759.56. This surplus
has been invested iu property, and he had accordingly directed that .
the same be written off to cost of property and depreciation.
October 17, 1905.
Meeting of stockholders held.
The president submitted a sworn statement of the affairs of the
company as of July 1, 1905, after which, on motion regularly made
and seconded, it was unanimously resolved that the statement of
the president be received and spread upon the records.
The following directors were elected: W. B. Dickson, W. P.
Palmer, C. E. Hewitt, Erskine Hewitt, H. G. Stoddard.
Reports by the president of the affairs of the company at the
respective dates given were submitted at the stockholders' meetings
held August 22, 1906, September 18, 1907, August 26, 1908, August
25, 1909, August 4, 1910.
Dividends were declared as foUows:
December 19, 1905, $10 per share; September 12, 1906, $15 per
share; December 18, 1906, $10 per share; June 18, 1907, $15 per
share; September 18, 1907, $10 per share; March 17, 1908, $15 per
share; June 15, 1908, $5 per share; December 10, 1908, $5 per share;
November 4, 1909, $10 per share; October 26, 1910, $5 per share;
December 27, 1910, $5 per share; March 21, 1911, $5 per share.
Note. — ^The meeting of March 21, 1911, was the last meeting re-
corded and extracted.
4318
X
No. 53
(IN FOTJB, PARTS)
PART m
UNITED STATES STEEL CORPORATION
HEAEINGS
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPEESENTATIVES
WEDNESDAY, FEBRUARY 28, 1912
WASHINGTON
GOVERNMENT PRINTING OFFICE
1912
REPOET OF
FARQUHAR J. MacKAE
TO CHAIEMAN OF SPECIAL COMMITl'EE TO INVESTIGATE
VIOLATIONS OF THE ANTITRUST ACT OF
1890, AND OTHER ACTS.
IN FOUR PARTS:
Part III— DOCUMENTS, ETC.
4319
DOCUMENT ]VO. 1.
An agreement, made this 1st day of March, 1901, by and between United StaUs Steel Cor-
poration, a corporation existing under the laws of the State of New Jersey (hereinafter
called the "steel company"), party of the first part, and J. P. Morgan & Co., of the
city of New York, acting in behalf of a syndicate, party of the second part:
Whereas the steel company has been organized with a capital of $3,000, of which
one-half is 7 per cent cumulative preferred stock and one-half is common stock, as
shown by the certificate of incorporation of the steel company, recorded in Hudson
County, N . J, on the 25th day of February, 19bl, which capital stock is to be increased
as hereinafter provided; and
Whereas as hereinafter stated, the board of directors of the steel company deem
it necessary for its business now to acquire the stocks and bonds of certain other cor-
porations and also to obtain for its corporate purposes a certain sum in cash; and
Whereas after careful investigation and appraisement, the board of directors of the
steel company, has ascertained, adjudged, and determined that the value of such
bonds and stocks now so to be acquired and hereinafter specified, exclusive of such
cash sum (which cash sum is to be received and treated by the steel company as sur-
plus), is equal at least to the par value of the stock of the steel company and of the
bonds of the steel company to oe issued therefor; and
Whereas the board of directors of the steel company considers that such bonds,
stocks, and cash may best be obtained by purchase, on the terms hereinafter stated,
from liie Syndicate represented bj; Messrs. J. P. Morgan & Co., party of the second
part hereto, and managers of the said syndicate; and
Whereas each of the corporations, the capital stock of which it is proposed now to
acquire hereunder, has been organized and now is existing under the laws of the
State of New Jersey, and has outstanding capital stock divided into shares, each of
the par value of $100 (excepting the Carnegie Co., of which the capital stock is divided
into shares of the par value of $1,000), and divided, also, into classes as next hereinafter
stated, the said corporations, and the total outstanding capital stock and the classes
thereof, being as follows, to wit:
Name of corporation.
Total outstanding capi-
tal stock.
Prelerred.
Common.
American Sheet Steel Co
American Steel Hoop Co
American Steel and Wire Co .
American Tin Plate Co
Carnegie Co
Federal Steel Co
National Steel Co
National Tube Co
124,500,000
14,000,000
40,000,000
18,325,000
63,260,900
27,000,000
40,000,000
J24,500,000
19,000,000
50,000,000
28,000,000
160,000,000
46,484,300
32,000,000
40,000,000
And whereas the Carnegie Co. has issued, and there are now outstanding, its 5 per
cent bonds for the aggregate principal sum of $160,000,000; and
Whereas the syndicate has arranged for the acquisition of substantially all of the
bonds and the stock of the Carnegie Co.; and
Whereas in reliance upon this contract the syndicate is endeavoring to effect the
acquisition and the delivery of all of the bonds of the Carnegie Co. and all of the out-
standing shares of the capital stock of all of said corporations upon the terms herein
provided.
Now, therefore, in consideration of the premises and of other good and valuable
considerations, and of the efforts and expenses which both parties recognize will have
to be made and incurred by the syndicate in their endeavor to consummate such sale:
4321
4322
UNITED STATES STEEL. COBPOEATION.
First. The steel company agrees with J. P. Morgan & Co., acting in behalf of the
syndicate, as follows:
(1) If, on or before May 31, 1901, J. P. Morgan & Co., in behalf of the syndicate, shall
(a) Sell and deliver, or cause to be sold and delivered, to the steel company at least
51 per cent of such outstanding shares of the capital stock of each of the corporations
above named, or of such of said corporations as finally shall be embraced within the
operation of this agreement with the approval of the steel company, which 51 per cent
of the total outstanding capital stock of each of such corporations shall include not
less than 51 per cent of the total outstanding preferred stock, if any, of such company;
and also all of the $160,000,000 of bonds of the Carnegie Co. now outstanding, or such
lesser amount thereof as shall be tendered by J. P. Morgan & Co.; and
(6^ Shall pay, or shall cause to be paid, to the steel company 125,000,000 in cash.
(2) The steel company will purchase such shares and bonds, and in payment and
consideration for such stock and bonds and for such cash will issue to such persons as
J. P. Morgan & Co., in behalf of the syndicate, shall indicate, shares of its preferred
stock and of its common stock (all of which shall be fully paid and nonassessable),
and also its 5 per cent gold bonds (which bonds shall be of such form and tenor, and shall
be secured as J. P. Morgan & Co. may determine), as follows:
(a) In the event that the steel company shall acquire all the shares of the capital
stock of all of such other corporations and all such bonds of the Carnegie Co., the steel
company will issue for all such stock and such bonds and such sum in cash 4,249,985
shares of its preferred stock, and 4,249,985 shares of its common stock, and also
$304,000,000 of its said 5 per cent gold bonds.
(6) In the event that the steel company shall not acquire all the shares of the capital
stock of all of such other corporations and all such bonds of the Carnegie Co., the steel
company will issue for the shares of stock and the bonds which shall be acquired, and
said sum in cash, 4,249,985 shares of its preferred stock and 4,249,985 shares of its
common stock and $304,000,000 of its 5 per cent gold bonds, less abatement and
deduction therefrom to be made, as follows:
For each $100 par value of stock of such other companies mentioned in the following
table which shall not be acquired by the steel company, the amount of the preferred
stock and common stock, or either, set opposite to such class of stock in said table,
shall be deducted and abated.
Name of company and class of stock.
Amount of stock to be
deducted in par value.
Preferred
stock.
Common
stock.
$160.00
110.00
4.00
117.60
{160.00
Federal Steel Co.:
OnTnmnn stnnlr
107.60
American Steel & Wire Co. of New Jersey:
Preferred stock
102,60
National Tube Co.:
Preferred stock
125.00
8.80
125.00
Common stock
126.00
National Steel Co.:
Common stock
125.00
American Tin Plate Co.:
Preferred stock
126.00
20.00
100.00
126.00
American Steel Hoop Co.;
Preferred stock
Common stock
100.00
American Sheet Steel Co.:
100.00
100. OO
For each $1,000 par value of such bonds of the Carnegie Co. that shall not be acquired
by the steel company $1,000 par value of such bonds of the steel company shall be
abated and deducted.
Second. The steel company further agrees that in the event of the acquisition by
it pursuant to this agreement of less than the total issue of said bonds of the pamegie
Co. or less than the total outstanding capital stock of each of said corporations, the
steel company from time to time will purchase from such persons as shall be indicated
UNITED STATES STEEL OOBPOBATION. 4323
by J. P. Morgan & Oo. any and all additional outstanding bonds of the Carnegie Co.
or shares of the capital stock of any of said corporations that shall be tendered to the
steel company prior to May 1, 1902; and in payment therefor will issue and deliver
its bonds and fully paid-up shares of its preferred stock and fully paid-up shares of its
common stock, at the rates at which deduction and abatement shall have been made
under article first hereof in respect of the additional bonds and shares of stock so
purchased.
Third. The steel company shall credit and allow^ to J. P. Morgan & Co. on account
of the cash sum payable under article first hereof, or shall pay to J. P. Morgan & Co.
a sum equal to the aggregate amount which, prior to April 1, 1901, shall have accrued
upon any installments of dividends accruing, but not matured, on any such preferred
stock at the date of delivery thereof to the steel company.
The steel company further agrees that the dividends on all the preferred stock of
the steel company to be issued by it hereunder shall begin to accrue from April 1, 1901.
Fourth. The steel company, without prejudice to the further exercise of its char-
tered rights to increase or to decrease its capital stock, agrees that it will lawfully
increase its authorized capital stock to an amoiint sufficient to enable it to issue and
to deliver its preferred stock and its common stock to the aggregate amount herein-
before provided.
Fifth. J. P. Morgan & Co., in behalf of the syndicate, will bear and wQl pay the
statutory fees and taxes for the proposed increase of the capital stock of the steel
company.
Sixth. This agreement, and any agreement in pursuance thereof, is and shall be
strictly inter partes; and no stockholder of any of the corporations above referred to
shall be deemed to have any right hereunder.
In witness whereof, these presents have been duly executed by the parties hereto
the day and year first above written.
[seal.] United States Steel Corporation,
By W. J. Curtis, President.
Attest:
Charles MacVeaqh,
Secretary.
J. P. Morgan & Co.
DOCU3IENT NO. 3.
An agreement, made this 1st day of April, 1901, by and between United Stales Steel Cor-
poration, a corporation existing wnder the laws of the State of New Jersey [heremt^ler
called the "steel company "), party of the first part, and J. P. Morgan & Co., of the
city of New York, parties of the second part:
Wiereas the steel company has been organized with a capital stock of $3,000, of
which one-half is 7 per cent cumulative preferred stock and one-half is common stock,
as shown by the certificate of incorporation of the steel company, recorded in Hudson
County, N. J., on the 25th day of February, 1901, which capital stock is to be in-
creased as provided in a certain agreement, dated March 1, 1901, between the steel
company and J. P. Morgan & Co., acting in behalf of a syndicate; and
Whereas the board of directors of the steel company deems it necessary for its busi-
ness now to acquire the stocks of the other corporations hereinafter named, and, after
careful investigation and appraisement, the board of directors of the steel company has
ascertained, adjudged, and determined that the value of such stocks now so to be
acquired and hereinafter specified is equal, at least, to the par value of the stocks of the
steel company, together with the sums in cash to be issued and paid therefor as herein-
after provided ; and
Whereas the board of directors of the steel company considers that such stocks may
best be obtained by purchase, on the terms hereinafter stated, through Messrs. J. r.
Morgan & Co., parties of the second part hereto; and
Whereas the names of said corporations and the classes and amounts of the capital
stock thereof which the steel company desires to acquire are as follows:
The Lake Superior Consolidated Iron Mines (a corporation of New Jersey), 298,884
TcV'ij'ff shares, of the aggregate par value of $29,888,448.97.
Bessemer Steamship Co. (a corporation of West Virginia), 50,000 shares, of the aggre-
gate par value of $5,000,000.
American Bridge Co. (a corporation of New Jersey), 313,738 shares of preferred stock,
of the aggregate par value of $31,373,800, and 309,508 shares of common stock, of the
aggregate par value of $30,950,800.
Colorado Fuel & Iron Co. (a corporation of Colorado), 20,000 shares of preferred stock,
of the aggregate par value of $2,000,000, and 170,000 shares ai common stock, of the
aggregate par value of $17,000,000.
Oliver Iron Mining Co. (a corporation of Minnesota), 2,000 shares, of the aggregate
par ^alue of $200,000, out of a total capital stock of $1,200,000.
Pittsburg Steamship Co. (a corporation of West Virginia), 2,217 shares, of the aggre-
gate par value of $221,700, out of a total outstanding capital stock of $1,333,000.
And whereas J. P. Morgan & Co. have heretofore rendered services for the purpose
of acquiring such stocks of said several companies for the benefit of the steel company,
and the steel company desires that J. P. Morgan & Co. shall render further services for
the purpose of acquiring such stocks:
Now, therefore, in consideration of the premises and of other good and valuable con-
siderations, and of the efforts and expenses which both parties recognize will have to
be made and incurred by Messrs. J. P. Morgan & Co. under this agreement:
First. The steel company agrees with J. P. Morgan & Co. as follows:
1. If, on or before May 31, 1901, J. P. Morgan & Co. shall procure the sale and deliv-
ery to the steel company of all, or any part, not less than 51 per cent, of such outstand-
ing shares of the capital stock of said Lake Superior Consolidated Iron Mines, the steel
company will purchase such shares, and in payment and consideration therefor will
issue to the respective vendors thereof, or for their account, as may be directed by J. P'
Morgan & Co., $135 in the preferred stock and $135 in the common stock of the steel
company (all of which shall be fully paid and nonassessable) for each $100 par value
of such shares of the capital stock of said Lake Superior Consolidated Iron Mines
so sold and delivered to the steel company.
Such stock of said Lake Superior Consolidated Iron Mines must carry all dividends
and rights to dividends declared or payable after March 15, 1901. Dividends on the
4324
UNITED STATES STEEL COBPOEATION. 4325
preferred 8tx)ck of the steel company to be issued in part payment therefor shall begin
to accrue from April 1, 1901.
2. If, on or before May 31, 1901, J. P. Morgan & Co. shall procure the sale and dehv-
ery to the steel company, or an agreement for the sale and deUvery to the steel com-
pany, of aU the shares of the capital stock of said Bessemer Steamship Co., the steel
company will purchase such shares of stock and will agree to pay therefor the sum of
$8,500,000 in cash on or before May 1, 1902, with interest from May 1, 1901, at the rate
of 5 per cent per annum.
Sucn stock of the Bessemer Steamship Co. must carry all dividends and rights to
dividends declared or payable after March 15, 1901.
If, on or before May 31, 1901, J. P. Morgan & Co. shall procure the sale and deliv-
ery to the steel company of said shares of the capital stock of said Ohver Iron Mining
Co. of the aggregate par value of $200,000, together with said shares of the capital
stock of said Pittsburg Steamship Co. of the aggregate par value of $221,700, the steel
company will purchase such shares, and in payment and consideration therefor will
issue to the vendors thereof, or for their account, as may be directed by J. P. Morgan
& Co., 92,500 shares of its preferred stock of the aggregate par value of $9,250,000 and
92,500 shares of its common stock of the aggregate par value of $9,250,000, all of which
shall be fully paid and nonassessable.
Such shares of stock of the Oliver Iron Mining Co. must carry all dividends and
rights to dividends declared or payable after March 27, 1901; and dividends on the
preferred stock of the steel company to be issued in part payment therefor shall begin
to accrue from April 1, 1901.
4. If, on or before May 31, 1901, J. P. Morgan & Co. shall procure the sale and deUvery
to the steel company of all, or any part, not less than 51 per cent, of said total out-
standing capital stock of the American Bridge Co. (which 51 per cent of the total out-
standing capital stock shall include not less than 51 per cent of the total outstanding
preferred stock of said American Bridge Co.), the steel company will purchase such
shares, and in payment and consideration therefor will issue to the vendors thereof,
or for their account, as may be directed by J. P. Morgan & Co., shares of the preferred
stock and common stock of the steel company (all of which shall be fully paid and non-
assessable) at the following rates:
For each $100 share of the preferred stock of the American Bridge Co. sold and deliv-
ered to the steel company, $110 par value in the preferred stock of the steel company.
For each $100 share of the common stock of the American Bridge Co. sold and
delivered to the steel company, $105 par value in the common stock of the Eteel
company.
Such preferred stock of the American Bridge Co. shall not carry the dividend of 1}
per cent declared payable thereon April 24, 1901, but must carry all other dividends
and rights to dividends declared or payable after April 1, 1901; and such common
stock of the American Bridge Co. must carry all dividends and rights to dividends
declared or payable after March 15, 1901. Dividends on the preferred stock of the
steel company to be issued for such preferred stock of the American Bridge Co. shall
begin to accrue from April 1, 1901.
5. The steel company hereby authorizes and requests J. P. Morgan & Co. for account
of the steel company to purchase or acquire, or to contract for the purchase or acquisi-
tion of all or any of the outstanding shares of the capital stock of the Colorado Fuel
& Iron Co., in consideration of the issue by the steel company in payment therefor of
such amount of the preferred stock and common stock of the steel company as from
time to time may be fixed by J. P. Morgan & Co., not exceeding in the aggregate
$15,000,000 in the preferred stock and $15,000,000 in the common stock of the steel
company in case afi. said outstanding 19,000 shares of the Colorado Fuel & Iron Co.
shall be so purchased and acquired, and not exceeding a proportionate amount of such
preferred stock and of such common stock of the steel company for any number less
than aU of such outstanding 19,000 shares that may be so ptu:chased or acquired.
6. The steel company requests J. P. Morgan & Co. to endeavor to procure the sale
and delivery to it on said terms of such shares of capital stock of said several corpora-
tions or any of them, and hereby it authorizes J. P. Morgan & Co., in their own name
or otherwise, by public notice or otherwise, to offer to the several stockholders of said
several corporations, or any of them, in exchange for stocks in said corporations,
respectively, certificates for preferred stock and common stock of the steel company
on the terms aforesaid. Any such offer may require the deposit of such stocks with
J. P. Morgan & Co. as depositaries, or with any other depositaries designated by them,
and may be made subject to any other further terms and conditions that may te
prescribed by J. P. Morcan & Co. _
The steel company will increase its capital stock to such amount as may be required
for the purpose of making the purchases hereby authorized.
4326 UNITED STATES STEED COEPOEATION.
7. The steel company authorizes and requests J. P. Morgan & Co. to make all agree-
ments and to do all acts and things, and to make any expenditures which in their
sole discretion they may deem expedient for the purpose of acquiring such shares of
stock, or any of them as aforesaid; and the steel company agrees to reimburse J. P.
Morgan & Co. for all such expenditiires and to pajr all other expenses of any descriptior
made or incurred by J. P. Morgan & Co. in acting hereunder. The steel company
further agrees to pay to J. P. Morgan & Co. fair compensation for their services here-
under.
Second. J. P. Morgan & Co. agree to endeavor to procirre the sale and delivery to the
steel companj?, on the terms aforesaid, of said stocks of said several corporations, and
they agree to include in any sale of stocks of the American Bridge Co. all of the shares
of the common stock and preferred stock of said company" by them owned. J. P.
Morga.n & Co. further agree that they will make an offer to the stockholders of the
American Bridge Co. and of the Lake Superior Consolidated Iron Mines inviting
them to receive m exchange for their stocks certificates for preferred stock and common
stock of the steel company on the terms aforesaid.
In witness whereof these presents have been duly executed by the parties hereto
the day and year first above written.
United States Steel Corporation,
[sB.vL.] By W. J. Curtis, President.
Attest:
Charles MacVeagh, Secretary.
J. P. Morgan & Co.
DOCUMENT NO. 4,
CONTRACT.
United States Steel Corporation with J. P. Morgan & Co.
An agreement made this 1st day of April, 1902, by and between United States Steel Cor-
poration, a corporation of the State of New Jersey (herein called the "steel company"),
party of the first part, and J. P. Morgan & Co., partners in business as bankers in the
city of New York (hereinafter called the "bankers"), parties of the second part.
Whereas, subject to the approval and assent of stockholders to be given at a special
meeting, the board of directors of the steel company, at the nineteenth regular meeting
thereof, held March 4, 1902, did duly adopt certain resolutions, and at the twentieth
regular meeting thereof, held this day, did duly adopt certain other resolutions, of
which the following is a copy:
"Resolved, That the board of directors of the United States Steel Corporation deems
it advisable, and hereby declares it to be advisable, that to the extent that holders
thereof shall consent thereto, 2,000,000 shares of the preferred stock of the corpora-
tion now outstanding shall be redeemed and be retired out of bonds or out of the
proceeds of bonds of the United States Steel Corporation, which bonds shall be of the
character set forth in the next resolution.
"Resolved, That bonds be issued by the United States Steel Corporation which shall
bear interest at the rate of 5 per cent per annum, payable semiannually, and the
principal whereof shall be payable in 60 years from the date thereof, and at the pleasure
of the company shall be redeemable at 110 upon any interest day after the expiration
of 10 years from the date thereof out of the proceeds of a sinking fund to be provided
by an annual contribution equal to 11,000,000 per annum and the accumulations of
interest thereof, or out of any other funds of the corporation.
' ' Such bonds shall be part of a total issue for an aggregate principal sum not exceeding
$250,000,000, and shall be secured by a mortgage, lien, and pledge upon all of the
property, and upon the shares of the capital stock of other corporations (not being
director's qualifying shares), which now are owned or held or which hereafter may be
acquired by the United States Steel Corporation, which lien and pledge shall be next
and similar to the lien thereon heretofore created for the security of $304,000,000 of
the bonds of this corporation issued under and secured by its indenture with the
United States Trust Co., of New York, dated April 1, 1901. Such bonds and such
mortgage, lien, or pledge shall be in such form as shall be determined by the board
of directors and approved by the general counsel, after the creation and issue thereof
shall have been authorized by the stockholders at a meeting to be called specially
for that purpose.
"A reasonable opportunity shall be offered by public advertisement to 'the preferred'
stockholders of record upon a date to be fixed and to be stated in such offer approxi-
mately to the extent of 40 per cent of their several holdings ratably to subscribe for,
and to take at par $200,000,000 of said bonds and to make payment therefor in
preferred stock at par, and also an opportunity approximately to the extent of 10
per cent of their several holdings ratably, to subscribe for and to take for cash at par
$50,000,000 of such bonds.
"Resolved, That whether or not the stockholders shall assent to and approve of the
foregoing resolution authorizing the retirement and redemption of the preferred
stock, bonds of such description and so secured shall be issued for an aggregate prin-
cipal sum, not exceeding $50,000,000, and shall be sold for cash for the corporate pur-
poses of the United States Steel Corporation.
"Resolved, That the president and the secretary of this corporation be, and hereby
they are, authorized and directed in its behalf to enter into a contract dated April 1,
1902 with Messrs. J. P. Morgan & Co., substantially in the form of that hereunto
annexed, such contract to be executed forthwith, but not finally to become or to be
operative until after approval thereof by the stockholders in special meeting assembled .
"Resolved, That a special meeting of the stockholders of the United States Steel
Corporation be, and hereby the same is, called to be held at the principal office of the
corporation at the building of the Hudson Trust Co., No. 51 Newark Street, in the
city of Hoboken, county of Hudson, N. J., at 12 o'clock noon, on Monday, the 19th
day of May, 1902."
4327
4328 XJNITED STATES STEEL COKPOKATION.
And whereas in anticipation of the due ratification and approval by the stockholders
of said resolutions, or of such of them as severally and respectively may be applicable
in respect of the several stipulations of this agreement, and in dependence upon such
ratification and approval, the parties hereto heretofore have entered into arrange-
ments substantially such as hereinafter are set forth for the accomplishment of the pur-
poses of said resolutions.
Now, therefore, in consideration of the premises and of the mutual promises herein
contained, and especially the benefits to the steel company expected to result from
the consummation of the plan indicated in said resolutions and in this agreement,
the steel company and the bankers mutually have promised and agreed, and by these
presents mutually do promise and agree, as follows, viz:
ARTICLE FIRST
1. For account and in behalf of the steel company, on or before the 1st day of July,
1902 (or such later day as may be substituted by mutual agreement of the bankers and
the board of directors or the finance committee of the steel company), the bankers by
public advertisement will offer to every preferred-stock holder of the steel company, as
recorded on the books of the company on a date to be fixed and to be stated in such
offer, severally and ratably, for and during a period of at least 30 days after a date or dates
to be stated in such offer or offers, (1) the preferential opportunity to subscribe for and
to take at par the ten-sixty-year 5 per cent sinking fund gold bonds of the steel com-
pany in such even amounts as such preferred-stock holders severally and respectively
may desire, in the aggregate not exceeding $200,000,000, nor (except at the discretion
of the bankers) in any instance exceeding 40 per cent of the par amount of the preferred
stock held by any such preferred-stock holder, such subscriptions to be payable in
preferred stock of the steel company at par (that is to say, 10 shares of such preferred
stock for each 51,000 in such bonds), and also (2) the opportunity to make an additional
subscription payable in cash for such bonds at par to an even amount approximately
equal to 10 per cent of the par amount of the preferred stock of such preferred-stock
holder.
2. In case such offer shall be so made, and to the extent that the same shall be
accepted by holders of preferred stock, the steel company will execute and will cause
to be delivered, upon the terms and conditions of such offer and in fulfillment thereof,
such bonds to such amount and in such denominations as may be required by the
bankers to enable them to fulfill the terms of their said offer as so accepted.
3. In case such offer shall be so made, and shall not be accepted by holders of
preferred stock to the full extent of $250,000,000 bonds, then, and in such case, U and
when, from time to time, on or before the 1st day of October, 1903, the bankers shall
so request, the steel company will issue and will deliver to the bankers for themselves
and their associates, at par, in exchange for preferred stock and for cash upon the same
terms and conditions as those so to l.e offered to the holders of the preferred stock,
any and all of the_ bonds so offered to holders of preferred stock, and not subscribed
for by them; provided Ihat in the aggregate not more than $200,000,000 bonds shall be
offered or be issued at par in exchange for preferred stock at par, and not more than
$50,000,000 bonds shall be offered or te issued at par for cash.
4. The bankers hereby guarantee to the steel company that upon such offer being eo
made, there will l;e made and be performed subscriptions upon the terms and condi-
tions thereof for at least $100,000,000 of such bonds at par, for $80,000,000 of which bonds
payment shaU be made in preferred stock at par, and for the remaining $20,000,000
thereof payment shall be made in cash.
5. The provisions of this article first shall become and be operative and enforceable
as soon as, and not before, the proposed retirement of 2,000,000 shares of preferred stock
by the issue of bonds shall have received the assent of stockholders and shall have been
finally authorized in the manner provided by law.
ARTICLE SECOND.
1. To the extent that the $50,000,000 bonds issuable for cash under said resolutions
shall not be taken by preferred stockholders, either because they shall not fully avail
themselves of any offer thereof such as is above indicated, or because the stockholders
shall fail to authorize the making of any such offer, then and in each and either of
said events the bankers and their associates or assigns if, at any time on or before the
Ist day of January, 1903, they shall so elect, shall have the right to take and to pur-
chase at par any or all of said $50,000,000 bonds issuable only for cash, or if an offer
thereof shall have been made to stockholders, so many and such part thereof as shall
not have been subscribed and paid for in cash by stockholders under such offer.
Any bonds mentioned in this article second which the bankers shall so elect to take.
UNITED STATES STEEL COEPOEATION. 4329
shall be taken and shall be paid for in cash from time to time as called for by the
bankers, on or before the 1st day of January, 1904.
2. This article second shall become and shall be operative and enforceable as soon
as, and not before, this article shall have received the approval of stockholders in said
special meeting.
ARTICLE THIRD.
As compensation for the risk, and for the guaranty mentioned in article first, sec-
tion 4, and for the several obligations by them assumed or to be assumed under the
foregoing two articles, severally and respectively, and for the performance of this
agreement to such extent as the same shall by them be performed, the bankers shall
receive and retain, and the steel company will pay and allow to the bankers, a
cash compensation equal to a commission of 4 per cent upon the aggregate amount
at par of all such bonds, as under the provisions of article first of this agreement, shall
be sold and delivered under any offer or offers by them made to preferred stockholders
or as shall be sold and delivered to the bankers or their associates.
ARTICLE FOURTH.
If the stockholders shall decline to authorize an offer to be made under the pro-
visions of article first of this agreement, and, if the bankers shall purchase bonds for
cash under article second hereof, then and in such event the bankers shall receive
and retain, and the steel company will pay and allow to the bankers, a reasonable
compensation (to be fixed by the board of directors) for their entering into this agree-
ment, and for their purchase of said bonds, and for convenience such compensation
shall be calculated upon the par value of all of said $50,000,000 bonds which, under
article second of this agreement, may be taken and be paid for at par in cash by the
bankers.
ARTICLE FIFTH.
All of the said bonds issued or to be issued by the steel company (as well as the
instrument of mortgage, lien or pledge securing the same) shall be in form satisfactory
to the bankers. The bonds are to be dated and are to be made payable in the city
of New York, and shall be delivered at the office of the bankers in the city of New
York.
ARTICLE SIXTH.
1. The bankers may transfer or assign any part of their obligation or rights under
this agreement, to any person or persons by them selected to share therein, provided
that the steel company may reject any person so selected whose adequate financial
responsibility shall be questioned by the steel company within 10 days after receiving
notice of such assignment or transfer.
2. At any time within 30 days after this agreement or any article thereof shall have
become operative, the bankers may deliver to the steel company a copy of any agree-
ment by them made for the transfer or assignment of any part of their obligations or
rights hereunder, with a list of their transferees, assignees, or associates, and unless
and except to the extent that such assignment or agreement or the subscribers thereto
shall within 10 days thereafter be objected to by the steel company, such subscribers,
to lie extent and upon the terms of their said agreement severally and respectively,
shall be accepted and substituted as parties of the second part hereto, in lieu and
exoneration of the bankers. Thereupon, to the extent of the aggregate of such sub-
stitutions, the bankers shall be discharged and released from their obligations here-
under.
ARTICLE SEVENTH.
This agreement may be amended, and the time for the performance of any act
thereunder may be extended, by the mutual agreement of the bankers and of the
steel company acting by its board of directors or by its finance committee.
In witness whereof, the steel company has caused these presents to be signed by
its president and its corporate seal to be annexed hereunto and to be attested by its
secretary; and the bankers have hereunto subscribed their names, the day and year
first above mentioned.
(Copy).
United States Steel Corporation,
[l. 3.] By C. M. Schwab, President.
Attest:
Richard Trimble, Secretary.
J. P. Morgan & Co.
DOCUMENT NO. 6.
New York, October 7, 1902.
Board of directors' meeting.
Concerning the question of improvements or additions, the policy of the corporation
has not been changed. In short, it is to have a symmetrical business proposition from
the raw material in the ground to the finished product, .and facilities for transportation
and delivery of the same. Also, to have each particular plant self-contained; and
then to keep each property up to the highest point of efficiency and economy. Event-
ually, therefore, the corporation should practically or substantially produce sufficient
and only sufficient ore and fuel to meet its own requirements ; and it should be prepared
to put into finished material other materials or products which it manufactures or
controls. And at each plant the business should be evened up so that it will not be
necessary to transport from one plant to another material needed for conversion. A
mere suggestion on the subject is sufficient.
As a rule the prices of all products we produce are fair and reasonable, and result in
some profit. The policy of this corporation has been, and is, to secure and maintain,
so far as possible, reasonable and steady prices.
E. H. Gary, Chairman.
[The above is a copy of the original sheet forming a part of this report, except that
it omits the figures of " average costs." The cost figures as included were not final
costs, being only the factory or direct producing costs, and would, therefore, not be
proper to use for any purpose other than the comparison in connection with which
they were stated. Moreover, they were costs of specific months only — figures which
should never be employed in any consideration of costs for genersu purposes.
Further, it would seem that data relating to costs ought not to be taken at all except
possibly under conditions that will be verbally explained. — W. J. F.]
New York, October 7, 1902.
Board of directors' meeting.
These companies, respectively, have complete organizations, including working
committees composed of the presidents, vice presidents, managers, mill superintend-
ents, etc., who are always in close touch with the affairs of the corporation with which
they are connected; and the presidents of the different companies frequently meet
for interchange of views. The conclusions of the officers of subsidiary companies are
reported to different departments of the United States Steel Corporation, and recom-
mendations (but not instructions) frequently made by the latter to the former. This
corporation, acting through one or more of its managing officials, is in frequent com-
munication with the presidents of subsidiary companies, respectively, concerning the
business and business methods of all subsidiary companies. If any question arises
which involves a departure in any respect from general lines of policy which have been
adopted, the same is brought before the executive committee of this corporation for
consideration, determination, and advice. If any question of finance is involved, the
action and determination of the executive committee is referred to the finance com-
mittee of this corporation for consideration, determination, and advice. If the execu-
tive committee is not in session at any time the chairman of the executive committee
possesses the powers of the committee . If the finance committee is not in session at any
time the chairman of the finance committee possesses the powers of the committee. It
is very seldom that the chairman of either committee exercises the powers of the com-
mittee without action of the committees, respectively, or at least the advice of a
majority of the committee, except as to certain matters which have been particularly
placed in charge of the chairman of the executive committee by this board.
As an illptration of the method of transacting business, let it be supposed that one of
the subsidiary companies is desirous of making a substantial expenditure for improve-
ments, or of entering into a contract of sale or purchase involving large sums of money,
or of making some important change in policy, the officer, or manager, or superintend-
ent who first suggests the proposed action, will make recommendation to his superior
officer, giving his reasons m detail. This will reach the president of the particular
company and be considered by his committee. After decision the subject is sub-
mitted to the president, or a \dce president, or other officer, of the United States Steel
4330
UNITED STATES STEEL OOEPOEATION. 4331
Corporation, and is brought before its executive committee for consideration. After
the question has been considered by the executive committee, if a question of money
is involved (and generally if a question of policy is involved) the subject is taken by
the chairman of the executive committee (who is, ex officio, a member of the finance
committee) to the finance committee, and there considered. Recommendations which
are decided upon by the executive committee or finance committee, or both, are re-
ported to the president of this corporation, who in turn conveys intelligence of the same
to the president of the company directly interested. Besides, the president and vice
presidents and chairman of the executive committee and chairman of the finance
committee are in daily communication with one another concerning the various
matters of business which are under consideration from day to day.
The treasurer's department and comptroller's department are subject to the con-
trol and direction of the finance committee. As a matter of fact, these departments
are in daily communication with the chairman of the finance committee, with the
chairman of the executive committee, with the president and other executive oflS-
cers, and with the presidents and treasurers and accounting departments of the
subsidiary companies, respectively.
Thus it will be seen each subsidiary company is equipped for success independ-
ently of any other company or corporation; but that uie association and connection
with the officers of other companies in which the corporation is interested and the
officers of this corporation may be and usually is of great benefit to each subsidiary
company, and particularly to this corporation. Also, it will be seen that the busi-
ness or success of this corporation does not depend upon the efforts or skill of any
one individual or few individuals; also, it will be observed the different officials
and different committees of this corporation are kept in close touch with the busi-
ness of the others, and each one is influential concerning the action of all others.
The following is a statement in brief of the work being done by the vice presidents
and assistant to the president, respectively.
Mr. Walker has care of all matters pertaining to costs of manufacture at the various
works and, where costs are high, to investigate and recommend such action as may
be necessary. The broad question of costs m every direction is under consideration
by him. He forms committees of our most highly skilled technical and practical
men from the various works, of which committees he is chairman, to study and rec-
ommend uniform methods of manufacture, and all such technical questions of manu-
facture as may arise are referred to him. The employment of committees in this way
promotes keen rivalry and brings about unreserved criticism and open discussion.
A feature of this system, also, is that it educates and broadens the men on the com-
mittees as well as those at the works.
Graphical charts are prepared showing the cost of charging materials from the
yards into the tops of our blast furnaces. These statements show very clearly and
at a glance the progress made and greatly facilitate making quick and comprehensive
comparisons between companies and between works.
DOCU3IE1VT NO. 8.
This agreement, made this 2Sd day of January, 1905, by and between H. C. Frick, of the
city of Pittsburgh, Pa., hereinafter termed the first party, and United States Steel Cor-
poration, a corporation organized and existing under the laws of the State of New
Jersey, hereinafter termed the second party, witnesseth:
The first party agrees for the sum of $1,000,000 to convey, on or before August 1,
1905, to the corporation to be designated by the second party as hereinafter men-
tioned, by deed of general warranty, free of all encumbrances except as herein stated,
a good and marketable title in fee simple to all those certain tracts or pieces of land
situate in Jefferson Township, in the county of Allegheny and State of Pennsylvania,
bounded and described as follows:
First. Beginning at low-water mark of the Monongahela River, at line of land now
or late of Blair Land Co.; thence by said Blair Land Co. line south 45° 53' west 661.27
feet, more or less, to a locust tree; south 35° 23' west 34.32 feet to a pin; south 61° 23'
west 15.18 feet to a pin; south 54° 1' west 398.91 feet to a pin at a comer; thence
still by said Blair Land Co. north 43° 45' west 1,014.20 feet to a pin in Peters Creek,
at line of land of the Corwin Land Co. ; thence in said Peters Creek and by said Corwin
Land Co. line north 40° 1' east 147.65 feet to a pin; north 56° 59' east 116.84 feet to
a pin; north 68° 7' east 278.74 feet to a pin; thence by a ciurved line, the arc of which
is 136.29 feet to a pin; thence north 14° 5' west 122.56 feet to a pin; thence by another
curve, the arc of which is 154.48 feet to a pin; thence north 86° 30' east 292.12 feet
to low-water mark of the Monongahela River, and thence by said Monongahela River,
by the low-water mark, 935.88 feet to the line of the Blair Land Co. at the place of
beginning; containing 25.75 acres.
Also that certain other tract or piece of land situate in Jefferson Township afore-
said, and bounded and described as follows, to wit: Beginning at a pin in the center
of the township road on line of lands of Corwin and Honstot; thence by a line in said
road and along land of George W. Blair et al.; south 34° 41' east, 451.88 feet to a pin;
south 72° 36' east, 594.05 feet to line of land of plan of lots of the Bradshaw heirs as
recorded in plan book, volume — , page — ; thence by the line of said plan south 24°
east, 677.81 feet to a pin at the comer; thence still by the line of said plan, south 46°
39' west, 677.18 feet to a pin; north 43° 21' west, 33.08 feet to a pin; south 67° 20' west,
624.95 feet to a pin; south 80° 26' west, 851.15 feet to a pin at line of land now or late
of S. P. and I. N. Large; thence by said land north 52° 57' west, 1,014.14 feet to a pin
on line of land of Corwin and Honstot, and thence by it north 49° 57' east, 2,143.89
feet to a pin in the center of the township road aforesaid at the place of beginning.
Containing 69.40 acres.
Together with a private road of the width of- 16 feet for access to premises as above
herein described, leading to the Elizabeth Road, and together with any and all other
roads appvu-tenant to the above-described premises, or any portion thereof.
Second. Beginning at a pin in the township road at Une of land of Corwin and Hoff-
stot; thence in said road and by line of land formerly of Bradshaw heirs (now H. C.
Frick), south 34° 41' east, 451.88 feet to a pin; south 72° 36' east, by said Frick land,
and by land of Bradshaw heirs (called Bradshaw plan), 825.39 feet to a pin; thence
north 45° 44' east, 26.52 feet to right of way of Pittsburgh, Virginia & Charleston Rail-
road; thence by it north 50° 34' west, 1,164.24 feet to line of land of Corwin and Hoft-
stot aforesaid, and thence by said Corwin and Hoffstot land, south 49° 57' west, 219.07
feet to the pin in the township road at the place of beginning.
Subject, however, to a certain grant for the use of a portion of the above-described
premises designated as parcel No. 2 in a deed from George W. Blair et al. to the Pitts-
burgh, Virginia & Charleston Railroad Co., dated April 8, 1890, and recorded in the
office of the recorder of deeds in and for Allegheny County, Pa. , in deed book, volume
695, page 508.
The said premises containing, exclusive of said railroad grant, 5.49 acres
Third. Beginning at a pin where land formerly of John F. Blair (now the T. Camp
bell Glass Co.) and land hereinafter described intersects or crosses the northerly Une
of the right of way of the Pittsburgh, Virginia & Charleston Railroad Co.; thence
extending along the land of the said T. Campbell Glass Co., north 46° 21' east, 1,425.20
feet to the low-water mark of the Monongahela River; thence down said river by low-
4332
UNITED STATES STEEL OOEPORATION. 4333
water mark thereof, 1,260.67 feet to line of land of the heirs of William Bradshaw;
thence by said Bradshaw land south 45° 53' west, 650.18 feet to a locust tree, south 35°
23' west, 34.32 feet to a pin; south 61° 23' west, 15.18 feet to a pin; south 54° 1' west,
398.91 feet to a pin; thence still by line of said Bradshaw heirs, north 43° 45' west,
984.02 feet to Peters Creek; thence south 37° 42' west, 580.22 feet to line of the Pitts-
burgh, Virginia & Charleston Railway aforesaid; thence by it south 50° 53' east,
1,388.30 feet to a pin; south 49° 39' east, 100 feet; south 47° 40' east, 100 feet; south
45° 41' east, 100 feet; south 43° 42' east, 100 feet; south 41° 43' east, 100 feet; south
39° 44' east, 100 feet; south 37° 45' east, 100 feet; south 35° 46' east, 100 feet; south 33°
43' east, 24.90 feet to the Hne of land of the Campbell Class Go. aforesaid at the place
of beginning.
Containing 53 acres, more or less.
Together with a road 40 feet wide on the line of the road known as the "Bradshaw
Road," extending from the line of the Pittsburgh, Virginia & Charleston Railroad to
the public road, and together with also a road 20 feet wide extending along the line
of premises now or late of John F. Blair from the Pittsburgh, Virginia & Charleston
Railway Co. to the township road.
Subject, however, to a private road now used and enjoyed by William Bradshaw.
Subject, however, to a certain grant for the use of a portion of the above-described
? remises for maintenance of channel, etc., in deed from George W. Blair et al. to the
ittsburgh, Virginia & Charl^ton Railroad Co. dated April 8, 1890, and recorded in
said recorder's office in deed book, volume 695, page 508.
Excepting and reserving, however, out of and from the premises above described
certain lota in the plan of the subdivision of the above-mentioned premises laid out
by the Blair Land Co. and recorded in said recorder's office in plan book, volume 12,
page 89, and numbered on said plan as follows: 43, 44, 190, 191, 192, 201, 202, 236,
265, 266, 267, 268, 269, 270, 277, 278, 279, 280, 281, 282, 283, 284, 309, 310, 311, 312,
313, 316, 318, 319, 320, 353, 354, 355, 357, 364, 365, 366, 367, and 376.
Also excepting and reserving from the premises described in the first ajid_ second
sections of this agreement 3.849 acres of land conveyed by the said H. C. Frick and
wife to West Side Belt Railroad Co., a corporation, by deed dated June 24, 1903.
This agreement and the conveyance to be made by the first party in pursuance
hereof are subject to:
1. All streets and alleys in the plan of the Blair Land Co. above mentioned;
2. Right of way of the Pittsburgh, Virginia & Charleston Railway;
3. All roads, public or private, crossing or intersecting any portion of the premises
herein described;
4. Rights of way for pipe lines;
5. Any and all oil and gas leases affecting said premises and all rights incident to
the enjoyment thereof.
The premises above described contain altogether, exclusive of reservations, about
143 acres of land.
The second party hereby agrees to purchase the above-described land, the title to
same to be taken on or before August 1, 1905, in the name of a corporation to be desig-
nated by the second party, which corporation shall thereupon execute and deliver to
the first party, or to any person or persons designated by him, coupon bonds in the
aggregate sum of $1,000,000, which bonds shall be first mortgage gold bonds for $1,000
each, to be dated August 1 , 1905, bearing interest at the rate of 4.4 per cent per annum,
payable semiannually, and shall become due as follows: One hundred thousand dollars
thereof on August 1, 1915, and $100,000 thereof on the Ist day of August in each year
thereafter until the entire issue is redeemed. The bonds shall be in the usual form
and made payable to bearer, and shall be secured by a first mortgage covering all the
land above described, which mortgage shall be in the usual form and made to the
Union Trust Co. of Pittsburgh, Pa., trustee, and shall provide for foreclosure on 60
"The second party agrees by indorsement on each bond (and, if so required, by a
general instrument in writing) to guarantee the punctual payment of the principal
and interest of all of said bonds as the same shall become or be made due and payable.
The first party shall select such attorney or attorneys as he sees fit, and the second
party agrees to cause to be done all acts req^uired by said attorney or attorney^ in the
authorization, preparation, and issue of said bonds and mortgage, and will pay all
expenses connected therewith, including the trustee's compensation, attorney's fees,
etc
Whereas the second party contemplates the purchase of the land now or late of the
T Campbell Glass Co., also certain land from the Crucible Steel Co. of America in the
vicinity of the land described in this agreement, the first party agrees, if the same ia
purchased, to pay to the second party on August 1, 1905, not to exceed $200,000 of the
31572— No. 53, pt. 3—12 2
4334 UNITED STATES STEEL COEPOBATION.
purchase price' paid by the second paxty for said additional land, provided a good and
marketable title to the same in fee simple, free of all encumbrances, is vested in the
said corporation to be designated by the second party on or before August 1, 1905. If
the second party purchases the additional land now or late of the T. Campbell Glass
Co. and Crucible Steel Co. of America, above mentioned, the bonds and mortgage shall
be made for the sum obtained by adding $1,000,000 to the amount paid by me first
party for the purchase of said additional land, as above stated, and the additional land
shall be included in the mortgage given to secure the said bonds.
The second party agrees to pay to the first party interest on said sum of $1,000,000 at
the rate of 4.4 per cent per annum from February'l, 1905, down to the date of the issue
of the said bonds, such interest to be paid on the last-mentioned date.
The second party shall have possession of the premises above described on February
1, 1905, subject to existing leases thereon (all of which leases can be canceled on 30
days' notice). All rentals due and accrued to February 1, 1905, to be retained by the
first party. All rentals accruing thereafter to belong to the second party.
The second party agrees to pay all taxes for 1905 as the same become due.
In witness whereof the first party has hereimto set his hand and seal and the second
party has caused this agreement to be executed by its chairman, and its corporate seal
to be hereunto affixed, attested by its secretary, the day and year first above written.
H. C. Feick. [seal.]
Witness:
William Watson Smith
(as to H. C. Frick).
United States Steel Coepokation,
By E. H. Gary, Chairman.
Attest:
[seal.] Richard Trimble, Secretary.
It is agreed that J. H. Reed shall be the attorney selected pursuant to the second
paragraph on page 7 (5).
H. C. Feick.
United States Steel Corporation,
By E. H. Gary, Chairman.
DOCUMENT NO. 9.
[This is the so-called Hill Ore Lease. It is a large printed volume. We have only
a signed original copy. This can be produced for inspection when wanted.]
DOCUMENT NO. 15.
UNITED STATES STEEL CORPORATION STATISTICS FOR YEAR ENDING
MAR. 31, 1902.
PRODUCTION.
Ore mined: Tons.
From Maxquette Range .' 1, 336, 215
From Menominee Range 1, 951, 160
From Gogebic Range 1, 810, 792
From Vermillion Range 1,872,214
From Mesabi Range 6, 356, 324
Total 13,326,705
Coke manufactured 9,079,142
Furnace product:
Pig iron 6, 961, 543
Spiegel: 134, 064
Perromanganese 56, 514
Total (equal to 45 per cent of total production in United States).. . 7, 152, 121
Fig-iron and spiegel production, by countries.
Tons.
United States, 1901 15, 878, 354
Great Britain, 1900 8, 959, 691
Germany, 1900 8, 520, 390
Prance, 1900 2, 699, 494
Ingot production.
'Jons.
Bessemer 6, 262, 202
Open hearth , 2, 772, 378
Total (equal to 67 per cent of total production in United States) 9, 034, 580
Steel production, by countries.
Tons.
United States, 1901 13, 369, 613
Great Britain, 1901 4, 850, 000
Germany, 1901 6, 394, 222
Prance, 1901 1, 465, 071
Finished products.
Tons.
Rails 1, 675, 628
Blooms, billets, and slabs (for shipment) 2, 481, 227
Plates 742, 508
Merchant steel, shapes, bars, hoops and bars 1, 236, 343
Sheets 415, 299
Tin plate 404,746
Wire and wire products 1, 078, 838
Tubes and pipes 693, 655
Axles and forgings 90, 659
Angle bars and joints 127, 582
Structural work (bridge company) 489, 506
Miscellaneous 50, 877
4335 '
4336 UNITED STATES STEEL COBPORATION.
Volume of business.
Tons. ' Selling value.
Manaiactuiing
cost.
Steel-manutocturing properties, stiipments, including
shipments between constituent companies I 10, 023, 837 | $410,643,625. 39
Coke shipments (includes coke manuikstured and coke i I
purchased for resale) I 10,070,768 18,936,301.26
Transportation properties: I '
Gross earnings ! j 29, 611, 012. 86
Operating expenses and taxes 1 ,
J315,662,881.63
12,453,346.17
16,431,006.79
■ Maintenance.
The outlays for repairs, maintenance, and extraordinary renewals during the year
were as follows:
Steel-making properties $19, 208, 335. 54
Coke properties 881, 763. 43
Transportation properties 4, 451, 590. 15
Total 24,541,689.12
Note.— In case of the mining properties the outlays for repairs are so closely allied
to operating charges that no separation has been attempted. It is therefore quite
impossible to give the amount of these expenses.
Freights paid.
The freight charges paid during the year by producing and manu-
facturmg companies to transportation companies, not including
charges on ore paid to our own railroads and steamship lines,
aggregated $54, 147, 567. 85
Employees.
Average number of employees in service during the year 158, 263
Total wages paid $112, 829, 198. 41
DOCUMENT B.
Statement of domestic shipments to customers, principal products, showing selling value
received for shipments, total manufacturing cost, and net profits.
[March, 1909.]
Bails, tee, heavy gross tons. .
Bails, tee, light do
Bails, girder do
Splice bars and rail j oints do
Spikes, No. 1 do
Flates, sheared do
Flates, universal do
Blooms, billets, and slabs, open-hearth,
gross tons
Blooms, billets, and slabs, Bessemer,
gross tons
Billets, small, open-hearth. gross tons..
Billets, small, Bessemer do
Sheet and tin plate, bars do
Tie plates do
Beams do
Channels do
Angles do —
Merchant bars and bands do
Spring steel do
Stelp do
Hooips do
Cotton ties do
Merchant pipe, black and galvanized,
gross tons
Tin plate:
Cokes base boxes. .
Charcoals do —
Temes do —
Black plate do —
Sheets:
Black gross tons. .
Galvanized do —
Sods, Bessemer do —
Bods, basic and acid do —
Wire, bright coarse net tons. .
Wire, annealed do —
Wire, coijper and sig fin , coarse .. do —
Stand & imsiel wire nails do —
Wire, galvanized, coarse do —
Wire, galvanized, barked do —
Wire, painted, barbed do —
Field fence do
Cement barrels. .
Quantity.
97,511
9,539
6,113
8,865
2,584
31,285
10,766
17,775
10,538
937
1,256
1,955
5,774
8,670
9,080
12,930
61,636
2,240
1,433
5,482
155
29,963
805,367
18,064
47,084
175, 705
20,281
13,670
3,780
3,920
7,835
3,669
1,397
27,223
11,511
13, 143
2,668
23,985
314, 151
Selling value per ton.
Total
cost per
ton.
February,
1909.
March-
Increase
Last
This
or de-
crease.
year.
year.
$28.82
$28.30
$28.87
$0.57
$22.05
24.80
26.90
24.33
2.B7
25.09
33.99
43.22
36.15
7.07
35.77
36.15
37.45
36.63
.82
26.70
40.14
39.58
39.90
.32
33.11
35.02
35.22
31.62
3.60
26.90
33.64
36.19
30.71
5.48
26.44
23.22
^.57
22.41
2.16
21.67
21.74
24.86
20.46
4.40
20.60
24.91
27.06
24.47
2.59
20.43
20.91
24.01
21.60
2.41
18.12
24.86
28.60
22.97
5.63
20.58
34.68
41.33
34.15
7.18
30.42
35.15
38.68
30.95
7.73
26.19
'33.94
37.01
30.40
6.61
25.73
32.96
36.24
30.34
5.90
26.65
31.88
36.21
29.80
6.41
27.93
31.98
35.10
30.77
4.41
27.34
33.07
40.31
28.75
11.66
27.60
41.60
43.83
40.87
2.96
30.84
37.36
41.24
30.45
10.79
31.34
59.73
65.61
51.40
14.21
39.48
3.36
3.51
3.27
.24
3.00
6.33
6.33
5.73
.40
4.86
4.33
4.21
4.12
.09
3.71
2.45
2.49
2.34
.15
2.14
50.50
50.83
47.86
2.97
43.23
67.19
71.53
64.83
7.30
57.60
31.65
33.53
31.79
1.74
27.37
32.87
36.02
32.13
3.89
29.86
40.02
42.67
40.33
2.34
33.63
39.61
■ 42.63
40.36
2.27
33.86
52.91
57.75
53.24
4.51
46.04
44.51
46.97
44.67
2.30
41.08
44.75
49.12
44.57
4.55
35.46
49.32
52.68
49.55
3.13
40.15
43.16
46.46
42.40
4.06
36.67
49.13
54.05
49.42
4.63
38.32
.91
1.05
.92
.13
.80
Net
profits
per ton
this
year.
$6.82
.76
.38
9.03
6.79
4.72
4.27
.74
.14
4.04
3.48
2.39
3.73
4.76
4.67
3.69
1.87
3.43
1.25
10.03
11.92
.27
-.87
.41
.20
4.63
6.63
4.42
2.27
6.70
6.60
7.20
3.69
9.11
9.40
5.73
11.10
.12
4337
DOCUMENT C.
Statement B.
Profits on shipTnents to Canada during 1908 in gross tons.
Products.
Selling
price
ffo. b.
mill.
Average
mill cost.
Mill profit
per ton.
Ship-
ments.
Total mill
profits.
Rails and accessories . ...
J26.40
29.12
29.12
23.75
27.76
28.00
28.00
$21.80
25.40
25.05
19.35
22.95
25.90
24.87
S4.60
3.72
4.07
4.40
4.80
2.10
3.13
7,745
31,321
23,738
2,604
7,370
9,075
10,358
$35,627.00
116,614.10
96,613.60
11,457.60
36,376.00
19,067.60
32,420.60
Plates
Skelp
Bars
Total
92,211
347,066.30
Average per ton, about $3.76.
Statement C.
Estimated yearly profit, exclusive of bounties, by erecting a new plant. Canadian business
based on present tariff conditions and prices ruling November, 1909.
Commodity.
Selling
price
f. 0. b.
mUl.
Esti-
mated
average
mill cost.
Mill profit
per ton.
Esti-
mated
gross tons
Total mill
profit.
Duty per
gross ton.
Rails (heavy)
Shapes
.Plates
Billets and sheet bars .
Wire rods
Skelp
Bars
Total.
$32.00
33.60
35.00
28.00
30.00
32.00
33.60
$21.00
26.00
26.00
20.00
23.00
.25.00
25.00
$11.00
7.00
9.00
8.00
7.00
7.00
8.60
125,000
75,000
50,000
30,000
60,000
40,000
50,000
$1,375,000.00
570,000.00
460,000.00
240,000.00
420,000.00
280,000.00
430,000.00
430,000
3,766,000.00
$7.84
3.36
7.84
3.36
7.84
(')
1.36
7.84
Average per ton, aboat $8.76.
4338
1 6 per cent.
DOCUMENT D.
Comparative statistics, September, 1902.
At time of organization
United States Steel Cor-
poration.
Totals per
annum.
Average
costs.
At present time.
Totals per
annum.
Average
costs.
Iron ore mined tons . .
Freight traiDo of our railroads in Northwest:
Tons iron ore transported
Tons other freight transported
Approximate average cost per ton
Traffic of our Lalie fleet, tons of freight transported .
Coke manufactured .- tons. .
Furnace production:
Pig iron do
Spiegel do
Ferromanganese do
Total furnace product do
Steel production:
Bessemer do
Open-hearth do
Total steel product do
Rolled products:
Blooms, billets, slabs, and shapes
Kails
Rods (for wire product)
Plates
Tube products
Black plate (for sale, tinning, and galvanizing)
Galvanized and tin plate
Structural work (bridge)
Volume of business, average per month
Employees:
Numb er
Paid
10,770,737
7,857,613
1,492,281
7,101,780
8,018,512
6,976,560
104,260
45,480
6,126,300
6,095,132
2,721,944
8,817,076
5,715,672
1,680,776
1,092,900
754,212
574,956
805,016
605,264
429,600
$38,600,000.00
148,500
$106,240,000.00
81.27
.48
.55
1.10
12.21
20.63
39.64
15.99
17.21
18.74
19.23
27.79
25.35
45.64
41.70
65.16
14,570,876
10,383,257
1,822,954
8,643,060
9,724,516
8,021,428
121,304
35,960
8,178,692
6,665,328
2,951,664
9,606,832
5,883,728
2,018,024
1,109,396
845,196
691,084
701,932
473,388
459,372
$46,380,000.00
166,100
$120,727,000.00
$1.24
.59
1.23
12.88
19.86
40.28
16.43
17.73
19.17
19.43
28.80
23.60
45.47
44.37
65.46
4339
DOCUMENT G.
COAL CONTRACT.
PrrrsBUEGH Coal Co. and United States Steel Cohpoeation.
This agreement, made this ZOth day of April, 1905, between the Pittsburgh Coal Co., a
corporation of the State of New Jersey (hereinafter called the "coal company), party
of the first part, and the United States Steel Corporation, a corporation of the State of
New Jersey {hereinafter called the "Steel Corporation"), the party of the second part.
Whereas, The coal company is engaged in the business of mining and selling coal
and the Steel Corporation owns or controls the whole or a majority part of the capital
stocks of certain companies or corporations engaged in the manufacture of iron and steel,
etc., and desires that an adequate supply of coal shall be provided for said companies
as well as for any other concerns which it may hereafter be interested in, for a period of
25 years following the Ist day of April, 1905, and the coal company desires to furnish
such supply of coal.
Now therefore, in consideration of the mutual covenants hereinafter contained and
of the sum of $1 lawful money of the United States, paid by each of the parties hereto
to the other party, the receipt whereof is hereby acknowledged, it is mutually agreed
by and between the coal company and the Steel Corporation acting for and in behalf
01 its several nominees hereinafter described, as follows:
Article 1.
Except as herein otherwise specifically excepted the coal company hereby sells
and the Steel Corporation, for any companies in which it may be interested as stock-
holder or otherwise (hereinafter desi^ated as "nominees"), buys all of the steam and
gas coal of the kind and quality required from tine to time lor (a) the adequate opera-
tion of all the mills and properties while in operation, which are owned or operated by
them, or which may hereafter be owned or operated by them and which are located
in the districts known as the Pittsburgh district and the VaUey district, as hereinafter
defined, and (b) the gas coal required for the adequate operation of the Lorain Works
of the National Tube Co. located at Lorain, Ohio, and (c) for delivery at Lake Erie
ports for use by the Steel Corporation, or its nominees, for their adequate requirements
for supplying coal for use by vessels owned or controlled by them, and for transship-
ment to upper lake ports for use by interests owned or controlled by the Steel Corpora-
tion to the extent that such interests may require coal of the kind and quality to be
furnished hereunder, for their adequate requirements, and (d) for the adequate require-
ments of the Union Railroad Co.
It is understood and agreed that the coal company shall be required to furnish slack
coal only to the extent of its ability to supply the same; provided, however, that the
Steel Corporation, or its nominees, shall always be entitled to receive, if desired, such
a proportion, of the total slack coal the coal company may have tor sale, as the total
tonnage of all coal other than slack purchased by the Steel Corporation, or its nominees,
imder this agreement bears to the aggregate sales of all coal other than slack sold by
the coal company.
The word ton " as used in this agreement shall be understood to mean a net ton of
2,000 pounds, avoirdupois.
The term "river coal " as used in this agreement shall be understood to mean all coal
which can be loaded by the coal company, or by the Monongahela River Consolidated
Coal & Coke Co., on flats, barges, or boats, at their respective mines or properties
having river tipples.
The term "rail coal" as used in this agreement shall be understood to mean coal
loaded by the coal company, or the Monongahela River Consolidated Coal & Coke
Co., in railroad cars from tipples at their respective mines or properties.
4340
UNITED STATES STEEL COBPOBATION.
4341
The expression "thick^vein coal" as used in this agreement shall be understood to
mean coal of a qualitjr equal to that taken from mines located along the fourth pool
of the Monongahela River, Pa., and to which the scale for thick-vein mining applies.
The expression "thin-vein coal" as used in this agreement shall be understood to
mean coal taken from mines located in the so-called Pittsburgh district and to which
the scale for thin-vein mining applies.
The term "Pittsburgh district" as used in this agreement shall be understood to
include the territory embraced within the counties of Allegheny, Westmoreland,
Washington, and Fayette, in the State of Pennsylvania, excepting, however, all of the
plants of the American Sheet & Tin Plate Co. located m Westmoreland County other
than the plants at New Kensington, Monessen, and Scottdale, Pa. The term "Valley
district" as. used in this agreement shall be understood to include the territory
embraced within the counties of Beaver, Lawrence, and Mercer, in the State of Penn-
sylvania, and the counties of Mahoning and Trumbull, in the State of Ohio.
Article II.
The prices t6 be paid by the Steel Corporation, or its nominees, to the coal company
for river coal shall be as follows:
For thick-vein
run of mine,
per ton.
For thin-vein
run of mine,
per ton.
For such coal delivered at the loading docks of the coal company, or at
the loading docks of the Monongahela River Consolidated Coal & Coke
Co., at their respective mines, in barges owned or controlled by the
$0.82i
.96
1.05
'10.90
For such coal delivered, as hereinafter provided, in barges provided by
the coal company at the landings of the Steel Corporation or its nom-
1.00
For such coal delivered, as hereinafter provided, in barges provided by
the coal company at the landings of the Steel Corporation or its nom-
1.10
1 When loaded at the third pool on Monongahela River.
The prices for rail coal to be delivered to the Steel Corporation, or its nominees, in
the Pittsburgh district. Valley district, and for shipment to Lake Erie ports, except
for coal which may be shipped from the New York & Cleveland Gas Coal Co. mines
to Edgar Thomson Works of Carnegie Steel Co., and except for cargo aoal delivered
at Lake Erie ports for upper lake Shipment, shall be f. o. b. cars at the mines of the
coal company, as follows: For thick- vein run of mine, $0.90 per ton; for thin-vein
run of mme, $0.97 per ton; and for screened coal, $0.10 per ton additional for coal
screened over a |-inch mesh, and $0.20 per ton additional for coal screened over a
IJ-inch mesh, to the above respective prices for run-of-mine coal.
The price of coal sMpped from the New York & Cleveland Gas Coal Co. mines to
Edgar Thomson Steel Works and furnaces shall be $1.13 per ton for run of mine, deliv-
ery f . o. b. cars Edgar Thomson Steel Works and Furnaces, and 66 cents per ton for
slack coal delivered f. o. b. Edgar Thomson Steel Works and Furnaces, said prices
being fixed in addition to the basis of the mining rate, as hereinafter stated, upon the
railroad freight rate now existing between said points, which is $3.25 per car in rail-
road company cars, and the foregoing prices are to be accordingly increased or dimin-
ished in the same amount that me fieight rate per ton may hereafter be increased or
diminished.
The prices for thin- vein coal to be delivered at Lake Erie ports for upper lake ship-
ment ^all be as follows: For run-of-mine coal f. o. b. vessel Lake Erie ports, $1.87
per ton; for coal screened over j-inch mesh f. o. b. vessel Lake Erie ports, $1.97 per
ton; for coal screened over IJ-inch mesh f. o. b. vessel Lake Erie ports, $2.07 per ton.
The prices above specified are fixed in addition to the basis of mining rates now
existing in the Pittsburgh district, as hereinafter stated, upon the existmg railroad
freight rates from the mines to Lake Erie ports, which is $0.83 per net ton, and such
demrered price f. o. b. vessel shall be correspondingly increased or decreased in the
same amounts as the freight rate may hereafter be increased or decreased.
The price of slack coal to be delivered under this agreement shall be $0.50 per ton
f . o. b . cars at mines of the coal company; and in case the coal company shall have alack
4342 UNITED STATES STEEL COEPOKATION.
coal for Bale for shipment by river, and the Steel Corporation, or its nominees, shall
make purchases thereof, the prices therefor shall be as follows: $0.42 J per ton delivered
in barges at the loading docks at the mines of the coal company, or at the mines of the
Monongahela River Consolidated Coal & Coke Co.; $0. 55 per ton delivered in barges
alongside of unloading docks of the nominees of the Steel Corporation, at mills or plants
located along the Monongahela River; and $0.65 per ton delivered in barges alongside
of the unloading docks of the nominees of the Steel Corporation, at nulls or plants
located along the Allegheny River. It being understood, however, that the nominees
of the Steel Corporation shall be entitled to purchase only such (quantity of slack coal
for river delivery as the total toimage of all coal except slack delivered by river to the
said nominees bears to the aggregate of all coal except slack sold for shipment by river
by the coal company. In the. event the nominees of the Steel Corporation shall pur-
chase nut coal under this agreement, the price therefor shall be 5 cents per ton leas
than the several prices herem specified for run-of-mine coal.
It is agreed that the Steel Corporation, or its nominees, shall have the right to require
the coal compaay to screen over screens now used or hereafter adopted by the coal
company, the run-of-mine coal to suit the former's requirements and the coal so
screened shall be delivered as screen coal, nut coal, and slack, and shall be billed by
the coal company at the above prices for run-of-mine coal. The foregoing clause,
however, shall apply only to river coal.
It is understood and agreed that the base prices hereinbefore specified for coal of
every kind purchased and delivered under this agreement, are based on the base
mining rates for pick-mined coal existing at the date of execution of this agreement in
the Pittsburgh district, viz: $0,718 per ton for thick vein, and $0.85 per ton for thin-
vein coal, screened over a l^-inch mesh screen; and in addition, in respect to the rail
coal only, on the basis of the same being loaded by the coal company in railroad com-
pany cars. In case the aforesaid mining rates per ton shall be from time to time
increased or decreased, the base prices for coal as herein specified shall be increased
or decreased the same amount per ton as the mining rate may be increased or decreased;
and in respect to rail coal, when such coal is loaded and furnished in individual cars
owned or controlled by the coal company and a lower freight rate for transportation pre-
vailSj the prices to be paid the coal company for such rail coal so loaded, as otherwise
provided herein, shall be increased by the difference between the freight rate per ton
payable on such coal and the freight rate per ton which would be payable thereon if
such coal were loaded in railroad company cars.
Akticle III.
All coal delivered under this agreement shall be of the best quality, character, and
grade of Pittsburgh vein coal and shall be mined from time to time as far as practicable
from the mine or mines or properties of the coal company or of the Monongahela River
Consolidated Coal & Coke Co., which may be designated by the Steel Corporation, orits
nominees, and shall be of such character, grades, and qualities and shall be delivered
in such quantities and at such times and places as the Steel Corporation, or its nomi-
nees, may determine, and if the nominees of the Steel Corporation shall require for use
any coal which shall differ in kind, grade, or quality from that which is then being pro-
duced by the coal company or the Monongahela River Consolidated Coal & Coke Co.,
from their respective mines, the nominees of the Steel Corporation shall have the right
to purchase the same from others than the said coal company during such time as the
coal company is unable to furnish it.
The routing of all-rail coal to be delivered under this contract shall be subject to the
control of the Steel Corporation, or its nominees, it being understood, however, that
this clause shall apply only to coal delivered f . o. b . on cars at mines of the coal company.
The coal company shall up to the full capacity of its present crushing capacity,
crush, suitable for use in automatic stokers, all or any part of the lump coal deliverable
under this contract that may be required by the Steel Corporation, or its nominees,
for which lump coal so crushed the coal company shall receive an additional price of
$0.05 per ton.
The nominees of the Steel Corporation will from time to time give reasonable notice
to the coal company of their estimated requirements of coal for the immediate future,
and in case the coal company fails at any time or times to supply, when and as required,
the various kinds of coal of the quality, character, and grade specified, the Steel Cor-
poration and its nominees shall have the right to buy elsewhere the quantities of the
various kinds of coal specified necessary to make up the amounts called for and to
charge the coal company the difference between the cost of the coal thus purchased and
the cost of the coal fixed by this contract.
UNITED STATES STEEL COBPORATION. 4343
All river coal delivered under this contract shall be weighed by the nominees of the
Steel Corporation at the mills, or plants to which it is consigned, and payment shall be
made for said coal upon the weights as determined by the said nominees, reserving the
right to the coal company to verify said weights and the methods employed in weighing
whenever said company shall so desire. In respect to all rail coal delivered under this
contract the weights of the transporting railroad company taken at scales nearest the
point of shipment at which cars may be weighed, shall control and the payment for
the same shall be made in accordance therewith.
The coal company shall deliver at the landings provided by the nominees of the
Steel Corporation — at Duquesne, Clairton, Donora, and National Tube Works at
McKeesporfr— the coal loaded in river craft, and shall care for the same until unloaded
by the nominees of the Steel Corporation, and after the same is unloaded by the said
nominees, shall take charge of the empty craft in said landings. At all other points
a delivery of the coal at the landings designated by the nominees of the Steel Corpo-
ration shall be a good delivery by the coal company, and the nominees of the Steel
Corporation shall care for the craft until delivered to one of the boats of the coal com-
pany. It is agreed the nominees of the Steel Corporation shall keep and maintain, at
all places where they shall require coal to be delivered by water shipments, suitable
landings and tyings and from time to time, if necessary, dredge said landings so that
the craft into which the coal may be loaded can be safely landed and held.
Payment shall be made by the nominees of the Steel Corporation for the various
quantities of coal delivered to them, respectively, under this agreement during each
month, on or before the 20th day of the month following delivery, in Pittsburgh or New
York Exchange.
Article IV,
The Steel Corporation covenants and agrees for itself and its nominees hereunder,
that so long as liie coal company shall keep and perform the covenants herein con-
tained that it will not purchase coal for steam or gas purposes for the requirements
specified in Article I of this agreement from anjr person or corporation other than the
coal company, except as in this section, hereinafter provided; nor will the Steel
Corporation or any company, the greater part of whose capital stock is owned or con-
trolled by the Steel Corporation, so long as the coal company shall keep and perform
the covenants of this agreement, make any further development of coal lands, except
for coking purposes, located in the States of Ohio and West Virginia and in the State of
Pennsylvania west of a line drawn north and south through the city of Harrisburg, for
the purpose of supplying therefrom any part of the requirements specified in Article
I hereof. Nothing, however, herein contained shall be construed to forbid the Steel
Corporation, or any company the greater part of whose capital stock is owned or con-
trolled by it, from purchasing, leasing, or otherwise acquiring, lands containing coal,
or coal lying in or under any land, or mining or mineral rights in or to coal lands, or
from continuing to operate to their full output of coal, any mines now opened and worked
by any company a majority of whose capital stock is owned or controlled by the Steel
Corporation, or which may be owned or controlled by any manufacturing company
whose capital stock or property may hereafter be acquired in whole or in part by the
Steel Corporation, or by any company whose stock is controlled by the Steel Corpo-
ration, it Deing the intent of this agreement, and understood and agreed by the par-
ties hereto, that any or all of such mines may be continued in operation and the
product supplied by the Steel Corporation, and its nominees, as may best suit their
mterests, provided, however, that no coal for steam or gas purposes shall be supplied
for the purposes specified in Article I hereof, from the mines or properties now or here-
after owned or operated by the H. C. Frick Coke Co., other than from the Gates mine.
It is further understood and agreed, however, that in respect to any manufacturing
company or property which may own developed coal property and mines, and which
may hereafter be acquired by the Steel Corporation, or by any companies the greater
part of whose capital stock is owned or controlled by the Steel Corporation, that the
product of such mines shall be furnished only for the use of the miUs or plants of such
manufacturing company so owning the coal lands, and for uses of the Steel Corporation,
or its nominees, for requirements at miUs or plants or for purposes other than for those
specified in Article I of this agreement. Nor shall the provisions of this section prevent
the Steel Corporation, or any of its nominees, from entering into a contract with the
Great Lakes Coal Co. for the purchase of a tonnage of coal not exceeding 600,000 tons
per annum during the period covered by this a^eement, for delivery at such points as
the Steel Corporation, or its nominees, may designate, provided, however, that any ton-
nage of coal so contracted for and purchased from the Great Lakes Coal Co. shall not
4344 UNITED STATES STEEL COEPOEATIOK.
exceed in any one year more than one-eighth of the aggregate tonnage purchased from
and delivered by the coal company under this agreement during such year. Nor sluJl
the provisions of this section operate to forbid the Steel Corporation, or its nominees, from
Eurchasing from others than the coal company, coal for delivery at ports on the Great
akes other than on Lake Erie for use in fueling vessels, owned or controlled by them, or
either of them, where the coal company or the Steel Corporation, or its nominees, do not
own or control docks and facilities for the fueling of vessels, provided, however, that
this clause shall not exempt the Steel Corporation, or its nominees, from purchasing
coal from the coal company for fueling vessels at ports other than on Lake Erie at which
neither the coal company nor the Steel Corporation, or its nominees, own or control
fueling facilities, in case coal for fueling vessels can be purchased from the coal com-
pany and delivered at such ports over docks of others as economically as said coal for
fueling purposes could be purchased at said ports from others. Nor shall the receipt
of coal by the Steel Corporation, or its nominees, under existing contracts not yet
expired, be a violation of the provisions of this section.
Article V.
It is specifically understood and agreed that the nominees of the Steel Corporation
which shall be entitled to any of the rights and privileges conferred by this agreement
upon the _party of the second part hereto shall include any company oj companies
the majority part of whose capital stock shall now or may hereafter be owned or con-
trolled by the Steel Corporation, or by any company the greater part of whose capital
stock is owned or controlled by the Steel Corporation. The Steel Corporation ftom
time to time will give notice to the coal company in writing of the nominees who may
be entitled to purchase and receive coal under this contract, and it does herein desig-
nate the companies named below as entitled at the date of execution of this agreement
to the rights to purchase coal under the terms and conditions hereof, and the coal com-
pany agrees to accept the said named companies, also such other companies as from
time to time the Steel Corporation may designate in writing, as nomiuees of the Steel
Corporation under this agreement, providing the greater part of the capital stock of
said companies, respectively, shall be owned as hereinbefore provided. None of the
following-named nominees of the Steel Corporation, nor any nominee hereafter desig-
nated, shall be withdrawn during the continuance of this agreement, said nominees at
the date of execution of this agreement being —
Corporations organized under laws of the States named.
Carnegie Steel Co Pennsylvania.
Carnegie Steel Co New Jersey.
Union Steel Co Pennsylvania.
Clairton Steel Co Pennsylvania.
National Tube Co New Jersey.
Shelby Steel Tube Co New Jersey.
American Steel & Wire Co New Jersey.
American Bridge Co New Jersey.
American Sheet & Tin Plate Co New Jersey.
The National Tube Co Ohio.
Union Railroad Co Pennsylvania.
Pittsburgh & Conneaut Dock Co West Virginia,
Pittsburgh Steamship Co West Virginia.
The contract now in existence with the Lindsay & McCutcheon plant of Carnegie
Steel Co., a copy of which is hereto attached and made part hereof, shall be renewed
for and during the continuance hereof.
Aeticle VI.
In case of strikes, fires, accidents, floods, ice or drought, shortage in car supply,
inability of railroa,ds to transport, or other matters beyond the control of any of the
parties hereto, which shall affect the operation of any of the mines or plants of either
of the parties hereto or of any nominee, the parties hereto shall agree whether any,
and if so what, modifications ought on account thereof, in equity and good conscience,
to be made in the terms of this agreement during the time such mine or plant may be
so affected, and if the parties can not agree, the question whether any, and if so what,
modifications ought on account thereof, in equity and good conscience, to be made
UNITED STATES STEEL COKPOEATION. 4345
in the terms of this agreement, during the time such mine or plant may be so affected,
shall be submitted to arbitration under the provisions of this agreement for arbitra-
tion ; and it is understood and agreed, however, that when a strike among the employees
of the coal company may reasonably be anticipated, the coal company shall promptly
provide and carry a stock of river coal sufficient to supply the current requirements
of the nominees of the Steel Corporation at plants supplied with river coal for at
least 15 days from and after the date of the beginning of me strike.
Should any dispute arise between the parties to this agreement concerning the obU-
fitions or rights of either of them or of any nominee, the same shall be referred to a
card of arbitrators to consist of three members to be chosen as follows, viz, the coal
company shall select one arbitrator and the Steel Corporation shall select another arbi-
trator, and the two arbitrators so chosen shall select the third. If either the coal
company or the Steel Corporation shall fail to appoint their arbitrator within 10 days
after the party desiring arbitration has appointed its arbitrator and given notice to
the other of such appointment and of the matter proposed to be arbitrated, then the
arbitrator so appointed shall appoint an arbitrator for the defaulting partjr, and both
arbitrators shall appoint the thira as above provided, and said board so appointed shall
hear and decide the dispute. If the two arbitrators first chosen fail witnin a reason-
able time to select the third arbitrator, the selection may be made by any judge of the
United States district or circuit court of Pennsylvania. The decision of said arbi-
trators chosen in either of said ways, or that of a majority of them, shall be final and
conclusive between the parties upon the matters concerning which said arbitration
was demanded.
This agreement shall take effect the 1st day of April, 1905, and thereafter continue
in full force and effect during and until the 1st day of April, 1930: Provided, however,
That the Steel Corporation shall have the right to cancel this agreement at the end of
any five years' period from the date of the execution of this agreement upon giving
at least one year's notice in writing to the coal compaity of its intention so to do and
the payment to the coal company on or before the date at which the agreement is
canceled of the sum of $500,000.
Article VII.
The authority given to the coal company by the Monongahela River Consolidated
Coal & Coke Co. to sell and dispose of coal from the mines and properties of the last-
named company is contained in resolution adopted by the board of directors of said
company dated April 18, 1905, a copy of which is hereto attached.
It is mutually covenanted and agreed that this agreement and all of its terms, pro-
visions, and conditions shall inure to the benefit of andbe binding upon the coal com-
pany and upon its successors and assigns, and shall inure to the benefit of and be
binding upon the Steel Corporation and upon its successors and assigns, and its
nominees.
In witness whereof the respective parties hereto have duly executed these presents
the day and year first above written.
Pittsburgh Coal Co.,
By , President.
Attest:
, Secretary.
Attest:
, Secretary.
United States Steel Corporation,
By ■ , President.
[Copy ot Lindsay & McCutoheon contract.]
The Monongahela River Consolidated Coal & Coke Co., op Pittsburgh, Pa.
memorandum op sale.
April 16, 1904.
The Monongahela River Consolidated Coal & Coke Co., of Pittsburgh, Pa., agrees
to sell, and Carnegie Steel Co., of Pittsburgh, Pa., agrees to buy:
Best quality fourth pool coal of the following grades: IJ inch lump, run of mine
and nut and slack, quality to be the same as heretofore furnished.
Full requirements of the McCutchepn mill from April 1, 1904, to April 1, 1905.
4346 UNITED STATES STEEL COEPOBATION.
The seller to deliver this coal in the mill at such points as may suit the require-
ments of the buyer. The buyer agrees to maintain in good condition the tracks and
cars used by the seller in making these deliveries. In case it is necessary by reason
of ice or high water to put in thin-vein coal an additional 10 cents per ton will be
charged.
At all times during the existence of this contract as the buyer's necessities require.
In coal bins in mill of buyer.
IJ inch, per ton $1. 38
Mine run, per ton 1. 18
Nut and slack, per ton 1. 03
Seller shall not be held responsible for delays in deliveries caused by strikes, dif-
ferences with workmen, accidents, interrupted or suspended navigation, or other
contingencies beyond its control.
To render this contract binding upon the Monongahela River Consolidated Coal &
Coke Go. it must be approved by an officer or director of said company at Pittsburgh,
Pa. , and its acceptance by any other agent of the company is subject to such approval.
The Monongahela River Consolidated Coal & Coke Co.,
By W. J. Wood, Secretary.
Carnegie Steel Co.,
H. A. Fennerty, Purchasing Agent.
resolution.
Whereas the Pittsbm'gh Coal Co. is about to enter into a contract with the United
States Steel Corporation, by the terms whereof the Pittsburgh Coal Co. is to supply
the United States Steel Corporation with coal for a period of 25 years from April 1,
1905; and"
Whereas it is the purpose and intention of said Pittsburgh Coal Co. that said contract
shall inure to the benefit of this company, it being intended that at least all of the
coal to be supplied by river shipments under the said contract shall be furnished by
this company; and
Whereas the said proposed contract has been at this meeting submitted to this board
and all the terms and conditions thereof made known:
Be it resolved, therefore, That this company request the Pittsburgh Coal Co. to pro-
ceed in said contract, and to sign and conclude the same, and that this company agrees
to keep and perform the said contract and to carry out the terms thereof to the extent
that it is intended coal shall be shipped by this company under the terms of said
contract.
Resolved, That the proper officers of this company be, and they are hereby, author-
ized to enter into a contract providing that this company shall furnish the Pittsburgh
Coal Co. all the coal it shall from time to time require and demand for delivery to the
United States Steel Corporation, and deliver the same in accordance with the terms
and conditions of the proposed contract between the United States Steel Corporation
and Pittsburgh Coal Co., or if desired by the United States Steel Corporation enter
into the original contract with the Pittsburgh Coal Co. as a party thereto.
I hereby certify that the foregoing is a true copy of a resolution adopted at a meeting
of the board of directors of the Monongahela River Consolidated Coal & Coke Co.,
held at the office of the company, Pittsburgh, Pa., April 18, 1905.
[seal.] J. W. Barber, Secretary.
Resolved, That the action of the president in negotiating the contract with the
United States Steel Corporation be, and the same is hereby, approved, and upon a
contract being entered into with the Monongahela River Consolidated Coal & Coke
Co., protecting this company as to delivery upon the rivers of the coal required by
the steel company, as specified in the preliminary draft of contract, or any contract
that may hereafter be entered into, that the proper officers of this company be, and
they are hereby, authorized to execute a contract with the United States Steel Corpo-
ration substantially in the form of the preliminary draft submitted to this board,
UNITED STATES STEEL COEPOEATION. 4347
and to affix the corporate seal oi tte corporation thereto, and execute and deliver,
under said corporate seal or otherwise, all the necessary papers to effect the making
of such contract, and to do every act, matter, and thing necessary to that end.
I hereby certify that the above is a true copy of a resolution adopted at a meeting
of the board of directors of the Pittsburgh Coal Co., held at the office of the company,
Pittsburgh, Pa., April 17, 1905.
[seal.]
F. J. Le Motne, Secretary.
DOCUMENT J.
[This is the same as Document Z.]
DOCUMENT K.
STEEL CORPORATION CONTRACT.
Agreement made this flfieenth day of December, A. D. 1902, by and between Untied States
Steel Corporation, a corporation organized and easting under the laws of the State of
New Jersey, hereinafter called the "Steel Company," party of the first part, and A. W.
Mellon, R. B. Mellon, W. H. Donner, William Flinn, George W. Dorr, John Stevenson,
jr., and J. P. Whitla, hereinafter called the " Vendors," parties of the second part.
Whereas the Vendors own or control all of the capital stock of the Union Steel
Company, a corporation of the State of Pennsylvania, hereinafter called "Union,"
and a majority oi the capital stock of the Sharon Steel Company, a corporation of the
State of Pennsylvania, hereinafter called "Sharon," and have heretofore by a contract
dated November 20, 1902, arranged for the vesting of the interests of both of said com-
panies in Union by the plan set out in said agreement, a true copy of which agreement
IS hereto attached; and the Steel Company is desirous of acquiring, upon the terms
herein set out, the ownership or control of the properties of Union and Sharon,
Now, it is agreed between the parties as follows:
First. The Vendors agree to proceed with and complete the organization of Unioa
in accordance with the terms and plan set out in the agreement hereto attached, and
to cause to be vested in it the properties as therein described, subject to such modifi-
cations as may be required to conform to the terms of this agreement.
Second. The provisions of the agreement of November 20, 1902,' for the ascertainment
of the cash investment in Union and Sharon and the provisions whereby each party
guarantees to the other that the assets therein specified are net assets shall be adhered
to and carried out. The Vendors shall furnish the Steel Company copies of the reports
of the auditors appointed under said agreement, showing the result of their examination
of the boolra of Union and of Sharon, and thereafter the Steel Company shall have
fifteen (15) days within which to examine and verify the same, for which purpose it
shall have full access to the books and papers of said companies. In case the cash
investment of Union, ascertained as in said agreement provided, shall vary from the
amount therein specified, the amount of cash to be contributed by the parties of the
first part to said agreement shall be increased or decreased by that amount. In case
the cash investment of Sharon, ascertained as therein provided, shall fall below eleven
million ($11,000,000) dollars, the amount of bonds to be received by the Vendors
hereunder shall be reduced by the amount that the said cash investment shall fall
short of the sum of eleven million ($11,000,000) dollars, and in that event the amount
of bonds so deducted from the purchase price shall be added to the bonds reserved
for the acquisition of additional properties or the making of future improvements.
Third. Union shall duly authorize twenty million ($20,000,000) dollars of capital
stack, all of which shall be issued to the Vendors in part payment for the properties
transferred by them to Union.
Fourth. Union shall also duly authorize an issue of bonds in the amount of forty-
five million ($45,000,000) dollars. Said bonds shall be in denominations of one
thousand ($1,000) dollars each, dated December 1st, 1902, mature December Ist,
1952, bear interest at the rate of five (5%) per centum per annum, payable semi-
annually on the first days of June and December, to be redeemable after Decem-
ber Ist, 1907, at 110 and accrued interest, both principal and interest to be payable
in gold coin. Said bonds shall contain a provision tha,t the principal and interest
thereof shall be paid without deduction of any tax or taxes which Union, or its suc-
cessors or assigns, may be required to pay, deduct, or retain therefrom under any
present or future law of the UniJ«d States, or of any State, county, or municipality
therein.
Said bonds shall be secured by a first mortgage and collateral trust deed, made to
the New York Security & Trust Company, upon all the property of Union, includ-
ing the stocks acquired by it, with the usual clauses for covering after-acquired
property. The said mortgage shall contain provisions requiring Union to pay annu-
ally ta the trustee for a sinking fund two (2 % ) per centum of the total amount of
the bonds outstanding and unpaid, which fund shall be invested and used upon
terms and conditions substantially similar to those contained in the mortgage of
434S
UNITED STATES STEEL OOEPORATION. 4349
the Steel Company dated April Ist, 1901 (substituting therein bonds of Union for
bonds of the Steel Company). Said mortgage shall also provide that a failure to
make such payment for ninety (90) days after the same is payable shall be a default,
and that thereupon the trustee may, and shall if so requested in writing by the hold-
ers of twenty-five (25%) per centum in amount of the bonds outstanding and unpaid,
declare and make the whole of the principal of all bonds outstanding and unpaid
due and payable forthwith.
Fifth. The Vendors further agree, and there shall be incorporated in the mortgage
to be made by Union, proper provision therefor that Union shall have the right
at all times, so far as may be deemed necessary by it, to remove or change any part
of the improvements on the property of Union and substitute others therefor; but
no such removal or change shall be made which shall prejudice or impair the general
value of the property of Union as manufacturing plants.
Sixth. The form of the said bond and of the said mortgage and trust deed, aside
from the provisions herein settled, are to be mutually agreed upon; otherwise they
shall be determined by the chairman of the finance committee of the Steel Com-
pany and Mr. H. 0. Fnck; or in case of the said H. C. Prick's refusal or inability to
act, then the said chairman of the finance committee shall select A. W. Mellon or
Wm. Flinn in his place. If said parties are unable to agree upon the form of said
bonds and mortgage, they shall choose a third person to act with them, and the
decision of a majority of the three persons so acting shall be final and conclusive.
Seventh. The said forty-five million ($45,000,000) dollars of bonds shall be issued,
held, and disposed of as follows:
(a) Three million five hundred thousand ($3,500,000) dollars thereof shall be
reserved to take care of the outstanding bonds of Sharon.
(b) The parties of the second part to said agreement of November 20, 1902, shall
receive in payment for all of the capital stock of Sharon bonds to th« amount of twelve
million nine hundred forty-five thousand ($12,945,000) dollars; provided, however,
that if the cash investment of Sharon, ascertained as provided in said agreement, shall
fall short of eleven million ($11,000,000) dollars, the amount of bonds to be received
shall be reduced by the amount that the cash investment falls short of eleven million
($11,000,000) dollars, and the amount of bonds so deducted ahiall be added to the
bonds reserved for the acquisition of additional property or the making of future
improvements. If all of the stock of Sharon shall not be delivered to Union, then
the proportionate amount of bonds which such outstanding stock would have been
entitled to have received if turned in shall be held by the trustee, and issued only
upon the acquisition from time to time by Union of such outstanding stock, and the
delivery thereof to the trustee and the pledge thereof as part of the security of the
mortage aforesaid.
(c) The parties of the first part to said agreement of November 20, 1902, shall be
entitled to receive in part payment for the properties and cash to be contributed by
them bonds to the amount of twenty-two million and fifty-five thousand ($22,055;000)
dollars, but such part of said bonds as are to be received by them for cash contributed
after the date hereof shall be held by the trustee and delivered only if and when the
cash so to be contributed shall have been paid to Union. Upon all cash contributed
after December 1st, 1902, the said parties shall pay or allow accrued interest on said
bonds to the date of making the payment for which such bonds are received.
(d) All of the remainder of said bonds shall be reserved for the making of improve-
ments upon the property of Union, or for the acquisition by Union of additional prop-
erties to be made subject to the lien of this mortgage, free from all other liens.
Eighth. Under said agreement of November 20, 1902, A. W. Mellon, R. B. Mellon,
and W. H. Donner are required to contribute certain cash for the purpose of com-
pleting improvements upon the properties of Union and furnishing working capital
to said company, for which, under said agreement, and as well under this agreement,
they are to receive bonds. It shall be optional with Union when controlled by the
Steel Company whether such improvements shall be completed and such contribu-
tions of cash required to be made beyond the amounts theretofore paid in by the said
parties.
And the said A. W. Mellon, R. B. Mellon, and W. H. Donner do hereby further agree
that in addition to the cash agreed to be contributed by them as above provided that
they will, if so required by the Steel Company, purchase at par and accrued interest
three million ($3,000,000) dollars of said bonds, the proceeds whereof shall be used in
the making of improvements on the properties of Union.
The cash to be contributed and payments to be made under this paragraph shall in
no event exceed the sum of seven hundred fifty thousand ($750,000) dollars in any
one month, and notice in writing of the requirements of Union shall be given to
A. W. Mellon or R. B. Mellon at least fifteen (15) days in advance of the date at which
31572— No. 53, pt. 3—12 3
4350 UNITED STATES STEEL COEPOEATION.
such money is required. The right of Union to the payments or contribiitions herein
provided shall cease at the expiration of eighteen (18) months from the date hereof,
save as to any moneys then due and unpaid.
Said parties shall deposit with the trust company bonds at par value to ten (10%)
per centum "of the amount of cash to be paid or contributed under this paragraph aa
coUateral security for the making by them of such payments or contributions, which
bonds shall be surrendered to said parties as such payments or contributions are made
ratably in the proportion that the payments or contributions so made bears: to the
total amoimt to be paid or contributed; and all such bonds remaining shall be sur-
rendered or delivered to said parties at the expiration of eighteen (18) months from
the date hereof upon the making of all payments or contributions then due.
Ninth. Upon the organization of Union as herein provided the Vendors agree to sell
and transfer unto the Steel Company and the Steel Company agrees to buy all of said
twenty million ($20,000,000) dollars of the capital stock of Union. In consideration
thereof and contemporaneously with the said transfer the Steftl Company hereby agrees
that it will duly and legally guarantee the payment of the principal and interest of all
of said forty-five miUion ($45,000,000) dollars of bonds of Union as the same shall
respectively become or be made due and payable according to the terms of said bonds
and the mortgage securing the same, which guaranty shall be duly endorsed upon each
bond, and executed by the Steel Company upon each bond immediately upon the
authentication thereof by the trustee. The Vendors further agree that they will con-
temporaneously with said transfer, with the cooperation of the Steel Company, cause
to be elected as ofiicers and directors of Union and its underlying companies such per-
sons as may be designated by the Steel Company.
Tenth. The Vendors severally agree with the Steel Company that they respectively
will not within the United States or the Dominion of Canada for a period of ten (10)
years from December Ist, 1902, engage, directly or indirectly, in the manufacture of
iron or steel, or articles made there&om now manufactured by the Steel Company, the
production of furnace coke, or the mining or production of iron ore, except in the Ter-
ritory of Arizona and State of Florida; excepting, however, from the terms hereof the
enterprises, if any, in which such parties may now respectively be engaged.
Eleventh. The Vendors agree that there shall be vested in Union all of the proper-
ties of the Donora Mining Company, including those which, by the terms of said a^ee-
ment of November 20, 1902, were not to be transferred to Union; and the said Vendors
do further stipulate that they do not have, either individually or together, any ore
properties which are not owned by Union or Sharon or the companies controlled or
owned by said companies, respectively.
Twelfth. The Vendors agree to cause to be transferred to Union all patents, if any,
owned by them or either of them which are now used, or intended to be used, by either
Union or Sharon.
Thirteenth. A. W. Mellon, R. B. Mellon, and W. H. Donner stipulate that Union
does not have any unusual contracts for the sale of its product or for the purchase of
materials or supplies save those specified in the schedule hereto annexed and marked
Schedule A; and that the importaiit service contracts of said company are as shown on
the schedule hereto annexed and marked Schedule B, which schedule gives all such
contracts so far as they are known to the said parties, and they stipulate that there are
no service contracts more important than those shown.
William Plinn, George W. Darr, John Stevenson, jr., and J. P. Whitla stipulate that
Sharon does not have any unusual contracts for the sale of its product or for the pur-
chase of materials or supplies save those specified in the schedule hereto annexed and
marked Schedule C; and that the important service contracts of the said company
are as shown on the schedule hereto annexed and marked Schedule D, which are all
such contracts so far as they are known to said parties, and they stipulate that there
are no other service contracts more important than those shown.
Fourteenth. The said agreement of November 20, 1902, provides that the parties
of the first part shall pay the principal and interest as they mature, of certain purchswe
money obhgations, and the Vendors hereby agree that there shall be deposited
with the trustee of said mortgage bonds of Union at par equal to the principal of said
purchase money obhgations, which bonds so deposited wiall, from time to time as
said purchase money obhgations shall be paid, be surrendered by the trustee to the
persons depositing said bonds, or to their order, upon receiving satisfactory proof of the
making of such payment.
Fifteenth. The Steel Company shall have the option for a period of fifteen (16)
days from the date hereof, of acquiring the Gonnellsville Central Railroad Company
and the Lake Erie Terminal Railroad Company by the purchase of all of the capital
stock of said companies, and the property known as the Elk Creek Harbor property,
consisting of about two thousand (2,000) acres of land at Elk Creek, on Lake Erie,
UNITED STATES STEEL COBPOEATION. 4351
at the cost thereof to the Vendors, with interest thereon and all expenses' and obliga-
tions incurred by them with respect to said properties, to the date of the transfer
thereof to the Steel Company, or its appointee. If it exercises this option the Steel
Conipany shall take all of said properties.
Sixteenth. It is expressly understood and agreed that if any breach of any of the
covenants in this agreement contained on the part of either party be alleged by the
other, or if any difference shall arise at any time between the parties hereto in rela-
tion to the construction of this agreement, or the due performance of any of the cove-
nants thereof (except as to the form of the bond and mortgage as provided in the
sixth paragraph hereof), the question shall be submitted to arbitrators. In such case
the party aggrieved or moving in the matter shall give to the other party written notice
of its desire to have an arbitration, in which it shall state generally its grievance and
name an arbitrator. The other party shall thereupon name an arbitrator within ten
(10) days after receipt of such notice, and in case of its failure to do so the moving
party may appoint the second arbitrator. The two thus appointed (in either manner)
shall select a third, and the board of arbitrators thus constituted shall thereupon
proceed to determine the matter in dispute, and the decision of any two (inclumng
the disposition of the costs of arbitration) shall be final and conclusive upon both
parties as to all questions of fact involved in such arbitration.
Seventeenth. It is understood and agreed that all the expenses incident to the
organization of Union and the making and issuing of said bonds and mortgage,
including counsel fees, shall be paid by Union.
Iln witness whereof, the parties of the second part have hereunto affixed their hands,
the day and year first above written; and the party of the first part has caused this
agreement to be signed by its proper officers this 16th day of December, A. D. 1902,
but as of the day and year first above written.
A. W. Mellon,
B. B. Mellon,
w. h. donner,
Wm. Flinn,
Geo. W. Darh.
John Stevenson, Jr.,
J. P. Whitla.
Witness as to signatures of Vendors.
J. H. Beal.
United States Steel Corporation,
' By Geo. W. Perkins,
Chairman Finance Committee.
E. H. Gary,
Chairman Executive Committee.
Attest:
J. H. Reed.
UNION-SHARON CONTRACT.
Agreement, made this twentieth day of November, 1902, by and between A. W. Mellon,
R. B. Mellon, and W. H. Donner, parties of the first part, and William Flinn, George
W. Darr, John Stevenson, jr., and J. P. Whitla, parties of the second part.
Whereas the parties of the first part own or control all of the capital stock of the
Union Steel Company (hereinafter called Union), and certain companies connected
in interest therewith, to wit, the Republic Coke Company, the River Coal Company,
the Donora Mining Company, and the Mathews Woven Wire Fence Company, and the
parties of the second part are the owners of a controlling interest in the capital stock
of the Sharon Steel Company (hereinafter called Sharon), which company owns cap-
ital stock of various companies connected in interest therewith, and the parties are
desirous of uniting the interests of all of said companies so as to vest the same in one
corporation.
Now, this agreement witnesseth:
First. The parties of the first part agree to proceed with and complete the organ-
ization of the Union Steel Company, and totake such action as may be necessary to
vest in that company the shares of the capital stock of the companies connected in
interest therewith above mentioned (the interest in the Mathews Company being
a majority interest only), by such plan as shall be deemed best by the parties hereto.
4352 UNITED STATES STEEL COEPORATION.
Second. The capital stock of the Union Steel Company shall be increased to
$40,000,000, and the said company shall also, by proper proceedings, authorize a
bonded indebtedness of $20,000,000, or such other sum as may be mutually agreed
upon, of forty-year five per cent sinking fund gold bonds, to be secured by mortgage
upon the property and franchises of the company.
Third. The parties of the second part agree to sell and transfer, or procure to be
sold and transferred to Union, at least fifty-one (51%) per cent of the shares of the
capital stock of the Sharon Steel Company, and tnat they will diligently and in
good faith endeavor to procure to be sold and transferred to Union all of the shares
of the stock of the said company upon the terms herein set out.
Fourth. The interests of the parties of the first part and their associates in Union
and the other companies connected therewith, and the stock so transferred by the
parties of the second part, and their associates, shall be paid for in capital stock of
Union, in proportions ascertained as follows:
The assets of Sharon are, for the purpose of this agreement, fixed upon the following
Cash, including profits invested in plants $11, 000, 000. 00
Ore properties 5, 000, 000. 00
Excess value of coal property over cost, 1,600 acres 600, 000. 00
Land at Sharon , approximately 400 acres 400, 000. 00
17, 000, 000. 00
Less outstanding bonds 3, 500, 000. 00
Amount to be paid for in capital stock 13, 500, 000. 00
The assets of Union are, for the purpose of this agreement, fixed upon the following
basis:
Real estate $1, 000, 000. 00
Republic Coke Company, property, 3,212 A 2, 880, 000. 00
River Coal Company, 1,178 A 720^ 000. 00
Two ore vessels, cost 600, 000. 00
Ore properties 5, 000, 000. 00
Cash, including profits, invested in plant and properties, and working
capital to October 31st, 1902 5, 943, 558. 23
Cash to be contributed for estimated expenditures yet to be made
toward completing plant according to present plans, and working
capital, which amount the parties of the first part are to pay as the
same from time to time is required and called for by the board of
directors, any part not paid in by July 1, 1903, to bear interest at
five per cent per annum (deducting, however, from this amount all
moneys advanced to Union since October 31 , 1 902) 6, 856, 441. 77
23, 000, 000. 00
Less amount to be paid the parties of the first part in bonds of Union. 3, 500, 000. 00
Amount to be paid for in capital stock 19, 500, 000. 00
Upon the valuations above stated the parties of the first part and their associates
shall be entitled to receive full paid up capital stock of Union aggregating at par
119,500,000; and the parties of the second part and their associates shall be entitled
to receive, in case of the delivery of all of the stock of Sha,ron full paid up capital
stock of Union aggregating at par value $13,500,000; and in case they shall deliver
less than the full amount, they shall receive the proportiona,te part of said $13,500,000
which the amount of stock of Sharon so delivered bears to the total amount of stock
of said company outstanding.
The parties of the first part shall also receive from Union in payment for their inter-
ests as fixed herein, $3,500,000, at par value, of the bonds of Union hereinbefore pro-
vided to be issued, and as the outstanding bonds of Sharon were sold less a commiflsion
of five per centum. Union shall pay to the parties of the first part a commission of five
per centum upon the bonds so taken by the parties of the first part in part payment
of their interests.
Fifth. The parties of the first part guarantee that there has been invested in cash,
including net profits, in Union and its properties, and working capital (excluding
items upon which arbitrary values have been fixed, viz, real estate, Republic Coke
Company, River Coal property, ore vessels, and ore property) the sum of $5,943,558.23;
and the parties of the second part guarantee that Sharon has a cash investment, includ-
UNITED STATES STEEL OOBPOEATION. 4353
ing net profits, in its plant and properties, and excluding all expenditures on or for
ore propertie3, amounting to $11,000,000, less the five per centum commission paid
for the sale of its bond issues of 13,500,000. The valuations so fixed are subject to
verification by auditors to be appointed by the parties hereto, each party hereto
selecting the party or parties to audit the books of the other partjr. The amount of
money to be hereafter advanced by the first parties under the provisions of paragraph
fourth shall be increased or diminished by the amount that the investment above
specified in Union and its properties shall be found by the auditor to exceed or fall
short of the amount of $5,943,448.23 above mentioned.
The amount of stock to be received by the parties of the second part and their
associate? shall be increased or diminished by the amount that the investment in
Sharon, ascertained as above provided, shall be found by the auditor to exceed of
fall short of the sum of $11,000,000.
It is further understood, and each party hereto hereby guarantees to the other, that
the assets herein described are net assets after providing for payment of all current
liabilities.
Sixth. There are purchase-money obligations on some of the properties of Union,
namely, Republic Coke Company, River Coal Company, and the Donora Mining Com-
pany. The parties of the first part agree that as said obligations and the interest
payable thereon mature they will pay and discharge the same so that the said prop-
erties shall be contributed to Union free and clear of such liens or claims.
Seventh. The Donora Mining Oompairy-^wns the Penobscot mine, the Sweeney
lease, the Donora mine, in the State of Minnesota, and a nine-tenths interest in the
Sa^aw lease in the State of Michigan, and the ownership or control of all said prop-
erties is to be vested in Union. Said company also owns the Volunteer mine, and
certain leases in Cascade Range adjacent or near said Volunteer mine, in Michigan,
which have not been considered in fixing the value of the ore properties of Union,
and are therefore excepted out of this agreement, and are to be conveyed by Donora
Mining Company as requested by the parties of the first part.
Eighth. The parties of«the first part own or control the Connellsville Central Rail-
road Company, and also the Lake Erie Terminal Railroad Company, and property
known as the Elk Creek Harbor property, about two thousand acres of land at Elk
Creek, on Lake Erie, all of which properties the parties of the first part hereby agree
to sell to Union at the cost price thereof to them, with interest.
Ninth. The parties of the first part agree to finance the sale of $3,000,000 of the bonds
herein provided to be issued by Union, at par and accrued interest, less a commission
of five per cent.
Tenth. The provisions hereof for the consolidation of the interest herein specified
shall take effect as of December 1st, 1902, and the completion of the final organization
and the carrying out of the provisions hereof shall be completed as soon thereafter as
practicable.
In witness whereof the said parties have hereunto set their hands and seals, the day
and year fii'st above written.
A. W. Mellon. [seal.
R. B. Mellon. seal.
W. H. DONNBK. SEAL.
Wm. FlINN. SEAL.
Geo. W. Darb. [seal.
John Stevenson, Jr. seal.
J. P. Whitla. [seal.
Witness as to all signatiu-es:
J. H. Beal.
Schedule A.
CONTEACTS FOR PURCHASE OF MATERIALS AND SUPPLIES.
1. With Corrigan-Mc Kinney & Company for 350,000 gross tons of ore per year for ten
years, commencing in 1902, 175,000 tons to be Old Range ore, at $3.25 per gross ton,
175,000 tons to be Stevenson Mesaba ore, at $2.65 per gross ton, each price based upon
certain guarantees and delivered at Lake Erie ports designated by Union. Union has
the right, after taking the ore for 1902 (which has been taken) to cancel this arrange-
ment by giving notice prior to January 1st, and such r^ht continued until the repay-
ment of a loan made by T. Mellon & Sons to Corrigan-Mc Kinney & Company, which is
payable during a term of years four, beginning in 1902.
2. With Biwabik Mining Company, for 750,000 tons of Biwabik ore, for a period of
five years, beginning 1903, 150,000 tons per year, at $1.10 per gross ton f. o. b. mine.
4354 UNITED STATES STEEL COEPOKATION.
3. With the General Chemical Company, for two years from July 1902, for supply
of sulphuric acid, at $10.50 per gross ton, f. o. b. works, Donora, and IJc. for muriatic
acid, f. o. b. Donora, in carboys, and Ic. per lb. in tank cars. The price on muriatic
acid is in dispute and cannot exceed this price and will probably be less.
4. With Carnegie Steel Company for steel billets, made in 1900. This contract is
based on certain sliding scales.
5. Penobscot mine (Donora Mining Company) has a contract for the sale to the
National Steel Company for 1,400,000 tons of ore.
Note 1. — The details for the organization of the Mathews Woven Wire Fence Com-
pany (of which Union owns 51 % of the stock) have not been fully agreed upon, but the
arrangement, so far as made, provides for a salary of $3,600 to Mathews for one year as
president, and that Union shall furnish the company its supply of wire at lowest selling
prices.
Note 2. — ^Union has contracts for the purchase of machinery and appliances, and
for file doing of work relating to the improvements and extensions now being made
by it.
Note 3. — Since the making of the agreement of November 20, 1902, the Republic
Coke Company has agreed to purchase 500 acres of surface land and improvements at
$100 per acre, which amount is not included in the purchase money obligations to be
paid by the parties of the first part to said agreement.
Schedule B.
service contracts.
W. W. Hutchison, sales agent — ^for two years from July 1st, 1902, at $5,000 per year.
M. McConnell, superintendent steel works — for two years from January 1st, 1902, at
$12,000 per year.
W, H. Farrell, superintendent Rod Wire & Nail Mill — ^for five years from July 1st,
at $5,000 per year; to be increased to $7,500 per year when a second rod mill is pro-
ducing a tonnage and costs satisfactory to W. H. Donner.
J. D. Miller, master mechanic — for three years from July 1st, 1901, at $250 per month.
Contracts with first and second rollera on rod mill for one year from July 1st, 1902,
at $5,000 and $4,000, respectively, per year, plus a bonus for extra tonnage.
Note. — Union has a contract for pumping water for the Donora Water Company at
20% of the gross receipts of the water company.
Schedule C.
contracts for sales op products.
' 1. With Sharon Steel Hoop Company, dated September 12th, 1900, for ten years, for
their requirement of steel billets not exceeding 5,000 tons per month — at market price
to be fixed from quarter to quarter.
2. With J. C. Pearson Company, dated March 4th, 1902, for 31 months from April 1st,
1902, for 6,250 kegs of nails per month at current ruling market prices.
Note 1. — Sharon Tin Plate Company (of which Sharon owns f of the capital stock)
has a contract with the American Tin Plate Company for five years from April 1st,
1901, for T^j of the total business of the American Tin Plate Company.
contracts for purchases.
1. Pickands, Mather & Company, dated November 2l3t, 1901, for 15 months from
February 1st, 1902, for 90,000 tons pig iron at rate of 6,000 tons per month; price
$14.25 per ton at furnace.
2. Grasselli Chemical Company, dated May 1st, 1902, for acid for five years at market
price.
3. Edwin Bell Company, dated October 25th, 1900, for 5 years from September 1st,
1901, subject to cancellation by either party on six months' notice. For Sharon's
supply of nail kegs. Price nine cents per keg.
Note. — There are contracts for the purchase of machinery and appliances and work
for the improvements and extensions now being made by Sharon.
UNITED STATES STEEL OOEPOEATION.
4355
Schedule D.
SERVICE CONTRACTS.
Sharon Steel Company. — ^H. 0. McNair — ^for one year from September 1st, 1902, at
13,000 per year. Sale8 agent at St. Paul.
W. E. Burdakin, as salesman — ^for three years from July 1st, 1902, at $3,000 per
year, terminable at any time on six months' notice.
Sharon Coal & Limestone Company. — T. B. DeArmitt, as general superintendent —
1 year from September 1st, 1902, at $7,500 per year.
Sharon Cohe Company. — ^J. P. Brennan, as general superintendent — for three years
from January 27th, 1902, at $10,000 per year.
Sharon Ore Company. — ^W. J. West, general superintendent — for three years from
September 1st, 1902, at $4,800 per year.
J. D. Lamont, chief engineer — ^for three years from September Ist, 1902, at $2,400
per year.
MODIFICATION OF UNITED STATES STEEL CORPORATION CONTRACT.
December 22, 1902.
Whereas the parties hereto did heretofore enter into an agreement with the United
States Steel Corporation, dated December 15th, 1902, for the sale, upon the plan
therein set out, of certain properties to the Steel Corporation, and in said agreement
it is provided that in the organization of the Union Steel Company a division of the
bonds to be received is to be made as between Union and Sharon upon the basis
of twelve million nine hundred forty-five thousand ($12,945,000) dollars of the
bonds to Sharon, and twenty-two million fifty-five thousand ($22,055,000) dollars to
Union, and since execution of said paper it has been discovered that the calcula-
tion in reaching said figures was erroneous, and the true amounts should be twelve
million eight hundred eighty-seven thousand ($12,887,000) dollars to Sharon, and
twenty-two million one hundred thirteen thousand ($22,113,000) dollars to Union,
and the parties have mutually agreed that said error shall be corrected.
Now, it is agreed by the undersigned, as follows:
That clauses (6) and (c) of paragraph seven of said agreement of December 15th,
1902, shall be and are hereby corrected so that there shall be inserted in clause (6)
in lieu of twelve million nine hundred forty-five thousand ($12,945,000) dollars of
bonds to be received by Sharon the sum of twelve million eight hundred eighty-
seven thousand ($12,887,000) dollars of bonds; and that clause (c) shall be and is hereby
corrected by inserting therein in lieu of the twenty-two million fiity-five thousand
($22,055,000) dollars of bonds therein mentioned the sum of twenty-two million one
hundred thirteen thousand ($22,113,000) dollars of bonds. The corrections hereby
made apply only to the figures named and all other provisions of said agreement,
including the other provisions of clauses (&) and (c) shall remain as therein written.
Witness our hands and seals this 22nd day of December, A. D. 1902.
Wm. Fjunn. seal.;
John Stevenson, Jr. [sbal.^
J. P. Whitla. [seal.
Geo. W. Darr. [seal.|
A. W. Mellon. [seal.'
R. B. Mellon. [seal.^
W. H. Donner. [seal.;
Witness:
J. H. Beal.
DOCUMENT M.
[See Document P,]
DOCUMENT P.
Agreement, made this Sd day of January, 1902, by and between United Stales Steel Cor-
poration {hereinafter termed the "corporation"), party of the first part, and J. P. Morgan
& Co. {hereinafter termed the "syndicate managers"), parties of the second part.
Whereas the corporation was organized on February 25, 1901, under a certificate of
incorporation filed on that day in the office of the secretary of slate of New Jersey, and
the capital stock of the corporation, as specified in said certificate of incorporation, was
increased on or about April 1, 1901, to $1,100,000,000, consisting of 1550,000,000 of
preferred stock and $550,000,000 of common stock, by a certificate of amendment of the
original certificate of incorporation, to which certificate of amendment and original
certificate, filed in the office of the secretary of state of New Jersey, reference is hereby
made; and
Whereas on or about the 26th day of February, 1901, a certain syndicate agreement,
bearing that date, was made by and between the syndicate managers, of the first part,
and the several subscribers to said agreement, of the second part, of which sjoidicate
agreement a copy, marked "Exhibit No. 1," is hereto attached; and
Whereas on or about the 1st day of March, 1901, a certain agreement, bearing that
date, was made by and between tbe corporation and said J. P. Morgan & Co., acting
in behalf of the syndicate under said syndicate agreement, of which agreement of
March 1, 1901, a copy marked "Exhibit No. 2," is hereto attached; and
Whereas on or about April 1, 1901, a certain agreement, bearing that date, was
executed bjr and between the corporation and the said J. P. Morgan & Co., acting in
behalf of said syndicate, a copy of which agreement, marked Exhibit No. 3, is
hereto attached; and
Whereas in performance of said agreement, dated March 1, 1901 (Exhibit No. 2),
the syndicate managers have sold to the corporation and have transferred and
delivered or caused to be transferred and delivered to it substantially all of the shares
of capital stock of the corporatior^s in said agreement specified, viz: American Sheet
Steel Co., American Steel Hoop Co., American Steel & Wire Co., American Tin Plate
Co., Carnegie Co., Federal Steel Co., National Steel Co., and National Tube Co.,
including therein shares owned individually by J. P. Morgan & Co. and by other
syndicate subscribers or participants; and also have sold to the corporation and have
transferred and delivered, or have caused to be transferred and delivered, to it
$159,450,000 of the 5 per cent bonds of the Carnegie Co., and have paid to the corpora-
tion the sum of $25,000,000 in cash; and in pursuance of said agreement of March 1,
1901, and in consideration and payment for such stocks and bonds and such cash, the
corporation has issued to and for account of the syndicate 4,249,716.34 fully paid shares
of its preferred stock, 4,247,688.52 fully paid shares of its common stock, and
$303,450,000 of its 5 per cent gold bonds; and
Whereas the $160,000,000 of capital stock and said $159,450,000 of 5 per cent bonds
of the Carnegie Co., so sold and delivered by the syndicate managers to tine corporation,
were acquired or taken over by the syndicate managers for syndicate account from
syndicate participants and others in consideration of $303,450,000 par value of said
5 per cent gold bonds of the corporation and $1,200,000 in cash and 982,771.20 shares of
preferred stock and 902,790.40 shares of common stock; and said preferred and common
stocks of said other corporations specified in the last preceding recital hereof were
acquired or taken over by the syndicate managers for syndicate account from syndicate
participants and others on the terms of the circular dated March 2, 1901, issued and pub-
lished by the syndicate manageiB in consideration of 2,616,957.46 sharew of said
preferred stock and 2,694,909.75 shares of said common stock of the corporation; and
Whereas of the remaining 649,987.68 shares of preferred stock and 649,988.37 shares
of common stock of the corporation belonging to Uie syndicate under said agreement of
March 1, 1901, the syndicate managers have sold a large part, and after deducting
from the proceeds of sale said sum of $25,000,000 in cash paid by the syndicate managers
to the corporation and also all sums in cash paid out and expended by the syndicate
managers in the acquisition of stocks and bonds of said other corporations, and after
deducting also all other expenditures made by the syndicate managers for account of
the syndicate, there remained a sum which, together with (lie unsold balance of such
4356
UKITED STATES STEEL COEPOEATION. 4357
Temainder of preferred stock and common Btock, will amount approximately to about
$56,000,000 and will constitute a profit realized by the syndicate and subject to distri-
bution among the syndicate managers and the syndicate subscribers; and
Whereas in piu-suance of said agreement, dated April 1, 1901 (Exhibit No. 3), the
syndicate managers procured the sale and delivery to the corporation of shares of the
capital stock of the following corporations in said agreement specified, viz: The Lake
Superior Consolidated Iron Mines, Bessemer Steamship Co., American Bridge Co.,
Oliver Iron Mining Co., and Pittsburgh Steamship Co., including therein shares
owned individually by J. P. Morgan & Co. and by other syndicate subscribers or
.participants, and the compensation due and payable to J. P. Morgan & Co. under said
agreement of April 1, 1901, has not been adjusted or paid; and
Whereas in addition to the securities sold to the corporation under said agreements
of March 1 and April 1, 1901, J. P. Morgan & Co., as syndicate managers, have pur-
chased for account of the corporation 795 shares of the common stock and 5 shares of
the preferred stock of the American Steel & Wire Co. of New Jersey; 25 shares of the
preferred stock and 50 shares of the common stock of the American Steel Hoop Co.;
38 shares of the preferred stock and 2 shares of the common stock of the National Steel
Co.; 96 shares of the preferred stock of the American Bridge Co.; 50 shares of the
common stock of the American Tin Plate Co.; 19 shares of the prefenred stock and
8 shares of the common stock of the American Sheet Steel Co.; 26 shares of the pre-
ferred stock and 626 shares of the common stock of the National Tube Co., for the
aggregate cost of $272,035.37, expended by them, which sum has not been repaid to
them.
Now, therefore, in consideration of the premises and of the mutual covenants and
releases herein contained, the parties hereby do mutually covenant and agree as
follows:
I, J. P. Morgan & Co., as syndicate managers and individually, do hereby release
and forever discharge the corporation from any and all obligation, accountability;
claim, and demand whatsoever growing out of or relating to or connected with an y
of the said transactions, agreements, matters, or things, or growing out of or relating
to the organization of the corporation or the issue of its stocks and bonds or the acqui-
sition by it or sale to it of any of the stocks and bonds of said other companies.
II. United States Steel Corporation hereby ratifies and confirms the several agree-
ments aforesaid and all acts done thereunder and declares fully satisfied and settled
all obligations of J. P. Morgan & Co., as syndicate managers or individually, under
or growing out of any of said agreements, and hereby releases and forever discharges
J. P. Morgan & Co., as syndicate managers or individually, and each subscriber and
participant in said syndicate agreement, from any and all obligation, accoimtability,
claim, or demand whatsoever growing out of or relating to or connected with any of
said agreements, matters, or things, or growing out of or relating to the organization
of the corporation or growing out of or relating to the issue of its stocks and bonds or the
sale to it or the acquisition of ownership by it of any of the stocks or the bonds of said
other companies.
In witness whereof, pursuant to a resolution of its board of directors, United States
Steel Corporation has caused these presents to be signed by its first vice presi-
dent, and its corporate seal to be hereunto affixed and attested by its secretary, and
J. P. Morgan & Co. have signed and sealed these presents, in duplicate, as of the day
and year first above written.
United States Steel Coeporation,
By James Gatlet, First Vice President.
Attest:
Richard Trimble, Secretary.
[seal ] J- P- Morgan & Co.
DOCUMENT Q.
H. C. Fhick Coke Co.,
Pittsburgh, Pa., November 18, 1904.
My Dear Sir: As I have previously advised you, our total coke capacity, of all
types of ovens, in all fields, at the present time, is about 4,000 tons per day short of lie
total requirements of all the constituent companies of United States Steel Corporation,
with all their furnaces and other coke-consuming plants in full operation. After
deducting the amount of coke we get from the Olivers, we will have a diortage of about
3,000 tons per day. In other words, with all our coke plants working to their full capac-
ity, we would be able to furnish only about 92 per cent of the requirements of the con-
stituent companies; therefore, if you have reason to believe that you will have business
for more than 92 per cent of the furnaces during the first six months of next year, I
suggest that Mr. Bnflfington be requested to figure with Pocahontas people for at least
100,000 tons of Pocahontas coke, for delivery the first six months of next year. A
good many of the operators in Connellsville and Klondike fields have sold for first
naif of next year, but I believe there is some yet that I can buy in case we feel that we
will need it.
My information is that the best quality of Pocahontas coke can be bought at $1.75
or less f. o. b. cars at ovens, but I don't think that we can get any in Connellsville
field for much, if any, less than $2. If Mr. Buffington can get more than 1,000,000
tons and can be reasonably sure of delivery, and can buy it at the prices at which I am
led to think he can, it would seem wise to do so.
I intend to fire up our ovens as fast as we can get labor and water, and accumulate
all the stock coke on the yards between this and January 1 that we possibly can, in
addition to supplying current demands of the furnaces, and I estimate that at the pres-
ent time there is a shortage of labor in the field of about 15 per cent, but my intention
is to start in at once and hunt up labor and ship them into the region as fast as we can
get water enough to give them employment.
We will not be able to get anything worth while from the new ovens we are building
before June or July, although we expect to be producing a little coke at one of the
plants before the end of the present year.
Very truly, yours, Thomas Ltnoh, President.
Mr. W. E. CoRET,
President United States Steel Corporation, New York City.
H. C. Frick Coke Co.,
November 19, 1904.
My Dear Sir: For your information: With perhaps less than 80 per cent of the total
ovens in the ConneUsviUe and Klondike fields in operation, the railroads in the last
two weeks are beginning to fall down on the supply of empty cars and prompt han-
dling of the loads. We have been short a few cars almost every day this week; nothing
serious, merely a straw, but it will show you the condition of the railroads. We are,
however, seriously hampered by delay in receiving the cars we do get, and there is a
great deal of complaint on the part of consignees on account of the slow movement
of coke from the region to the furnaces. For the past month we have been very
badly crippled on account of lack of cars for our coal business at Sygan and Treveskyn
mines on the Panhandle Railroad.
From the best information I can get, the railroads are in worse condition to-day,
as regards cars, than they were at January 1, 1903. A great many of the old cars have
been destroyed and repairs on others allowed to run down; the same thing applies to
the engines, and very few, if any, new ones secured in the meantime.
Very truly, yours,
Thomas Lynch, President.
Mr. W. E. Cokey,
President United States Steel Corporation, New York City.
4358
DOCUMENT R.
United States Steel Corporation,
Office op the Comptroller.
Export bookings for the week ending Feb. 4, 1911, as shown by the daily reports.
Rails: Tons.
Tee, heavy 1, 639
' Tee, light 1,272
Girder and special work 3, 451
Splice bars and rail joints 435
Spikes, bolts, nuts, etc 80
Structural shapes and bars 3, 502
Plates 6, 490
Blooms and billets:
Large 15, 203
Small 100
Wire rods '. 4
Merchant steel, bars, angles, etc 2, 785
Wire products ' 5, 755
Tin plate 5, 436
Sheets 2,022
Tubular products 1, 435
Hoops and cotton ties 2
Structural work, bridge 10, 127
Total 59,738
Total Jan. 28, 1911 73, 455
United States Steel Products Co,
SO Church Street, New York, February 6, 1911.
W. J. Filbert, Esq.,
Comptroller United States Steel Corporation,
71 Broadway, New York City.
Dear Sir: Weekly report of market conditions: Sales for week ending February 3,
66,812 tons, covering, 4,887 gross tons of tee rails, 3,768 tons of girder rails, 225 tons of
special track work, 31,534 tons of shapes, plates, and bars, 10,000 tons of bridge and
building work, 5,829 tons of wire products, 1,770 tons of tubes and pipe, 3,702 tons of
sheet steel products, and 4,060 tons of tin mill products.
Rails continue in good demand, with prices unchanged. Tramway requirements
are active, especially ia Canada and Japan. Contract tonnage of shapes, plates, and
bars is priacipally for Canada and the Philippines; total bookings for Waverly ware-
house during January were 1,401 gross tons. Bridge and building work for the national
railways of Mexico amounts to 10,000 tons, with the probability of additional require-
ments; Japan is also expected to buy heavily. Wire products are well distributed at
firm prices, with considerable new business under negotiation. The Far East business
is somewhat curtailed, due to the Chinese New Year and the reduction in such Japa-
nese tonnage as can not arrive at destination before the imposition ot the higher duties.
Pipe and oil-country goods are quiet, but a satisfactory contract for locomotive tubes for
Canada has been closed; domestic competitors' prices continue low for near-by markets.
Plain and galvanized sheets are in steady request, and with the exception of certain
markets prices are well maintained. Heavy buying of tinplate continues, due to
repeated advances, and buyers having been caught without sufficient supplies for
prompt requirements; these conditions have permitted developing new connections
and markets hitherto favoring Welsh product.
Foreign conditions from the standpoints both of production and consumption con-
tinue satisfactory. The firm prices generally existmg should be ultimately reflected
in tubular lines, and higher prices in sheets are generally expected. This would mean
practically the whole list of steel products would have reached a fair level of prices,
which should be maintained by the good consumption in export markets, supple-
mented by the improved conditions here.
Yours, very truly, E. P. Thomas, President.
4359
4360
UNITED STATES STEEL, COBPOBATION.
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4366 UNITED STATES STEEL COKPOEATION.
Memorandum to Mr. MacRae of reasons why the following-named plants were not included
in the list of abandoned plants furnished him for the Stanley committee.
National Tube Co. (1902 annual re)port): Morris Tasker works, New Castle, Pa.
Shelby Tube Co. (1902 anuuail report): Albany works, Albany, Ind.; Toledo works,
Toledo, Ohio.; Hartford works, Hartford, Conn.
All the above plants had been permanently closed down by the owning companies
prior to the dates in 1901 at which the capital stocks of said owning companies were
acquired by the United States Steel Corporation. The names of the plants appeared
in our annual reports for 1902 and some subsequent years, until they were whoUy dis-
mantled or disposed of. But as the special statement we rendered as of plants aban-
doned was based on the "permanently closed" date, the plants above named were
omitted for reasons first stated in this memorandum.
The Breaker Island plant, Troy, X. Y., has not been operated since its acquirement.
DOCUMENT W.
Blastfurnaces of subsidiary companies of United States Steel Corporation.
[Number of furnaces constructed are in roman; those purchased, in italics. ]
Location (dis-
Number
Apr.l,
1901.
Added since.
Total
added
in nine
years.
Number
Jan. 1,
1910.
trict).
1901
1902
1903 1904
1905
1906
1907
1908
1909
Pittsburgh
Valley
28
8
3
1
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1
';! '
1
2
2
1
2
H
42
f ■"
Wheeling
1
9
Columbus
3
OleypIflTid . .
2
1
3
12
3
10
Chicago 17
2
2
4
4
29
3
3
Total
Tenn. C.,I. &E.
R.Co
70
3
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} ^{ I
} ^
4
3
IS
7
4
\ 30
} "1
16
Grand total.
70
3
{ I
) ^{ I
} ^
4
{1
} '
4
{ 30
1 127
List of blast furnaces added during the years 1901 to 1909, inclusivt.
1901:
New Castle 1
South Chicago 2
1902:
Troy 3
Donora 2
South Sharon 3
Riverside 1
Edgar Thomson 2
1903:
Carrie.
Ohio..
11
1904:
Clairton 3
Lorain 2
1905:
Mineo 1
ingi
McKeesport ^ 1
1906:
Carrie
South Chicago.
Joliet
1907:
Tennessee...
Lorain
Duquesne
McKeesport.
1908:
Duquesne.
Ohio
Gary
1909: Gary.
16
1
1
1
19
4367
DOCUMENT X.
United States Steel Products Export Co.,
New York, U. S. A., November 5, 1909.
Mr. Wm. E. Corey,
President United States Steel Corporation, New York City.
Dear Sir: In December, 1904, a committee was appointed by you, consisting of
Messrs. Gayley, Dinkey, Palmer, Schiller, and Farrel, to investi^te the advisability
of establishing a plant in Canada to manufacture all lines and products that we were
exporting into Canada. This committee submitted its report, dated February 8,
1905, with the recommendations that a plant be acquired or buUt at an early date-
First. To take advantage of the increasing Canadian consumption of iron and steel
products, estimated at 10 per cent increase annually.
Second. To avoid the decrease in our exports, which it was foreseen would occur
through the imposition of duties on rails and (a) other materials which, prior to that
time, had been free; (6) increased duties on other commodities; and (c) the counter-
vailing tariff, which precludes the sale of American material in Canada at more than
5 per cent under our domestic prices.
Third. To profit by this increased protection to Canadian industry, which otherwise
would ultimately destroy our trade with that country.
At various times since the report of the committee was submitted the question has
been considered, and it is understood that while the project has always been favorably
regarded as an ultimate necessity and to that end land was acquired at the site
selected — Sandwich, Ontario — it has not heretofore been deemed expedient to proceed
with the actual construction of the plant. However, it is hoped that the present may
be re6p,rded as a more opportune time than heretofore for the consideration of a
Canadian plant. We accordingly submit herein and herewith various information
and statements that may be of value in such consideration.
Statement "A" attached, shows tonnage of certain steel products shipped for our
account to Canada during the past five years and during first nine months of 1909.
Statement "B" shows actual profits on shipments to Canada diuing 1908 and may
be taken as a basis of comparison with the annual profits to be realized by the erection
of a Canadian plant.
Statement "C" indicates estimated profit per ton and annual profit to be realized
by erecting a Canadian plant. The figures are based on present tariff conditions,
with prices ruling at this date. The present regular duties are also indicated. State-
ment does not include the bounties offered by the Canadian Government on pig iron,
wire rods, and steel ingots.
Statement "D" presents an analysis of the bounties during 1907 and 1908, those
applicable to years 1909 and 1910, and the amount that could oe realized, in respect
to the total tonnage manufactured diuing 1910 if a Canadian plant were ready for
operation.
Statement "E" ' presents in detail bounties on iron and steel paid to various
producers and totals paid during each year, 1897 to 1908, inclusive.
These bounties expire December 31, 1910. Although the system has been in operar
tion for 13 years, and has been renewed at each period of 3 or 4 years for which it
has been effective, no assurance can be given of its continuation beyond the fact that
it seems to have become a recognized tenet of Canadian fiscal policy.
Therefore it is necessary to consider the building of the plant without fundamental
regard to that source of revenue, but Statements "D " and E " are submitted to show
the possibilities, in the system, of profits beyond those ordinarily considered in iron
and steel manufacture.
Statement " F " • shows the cost of erecting a new plant with the equipment stated,
this being the same estimate as presented with the committee's report of February
8, 1905, the figiures having been prepared by Mr. SUck, of the Carnegie Steel Co.
Statement "G " indicates estimated total tonnage of various steel products consumed
in Canada during 1908, in comparison with the total tonnage of imports from all
sources and the tonnage of our exports to Canada during that year. Oiu: shipments of
several products are seriously out of proportion to the totals of consumption and
importation.
' Not printed.
4368
UNITED STATES STEEL COEPOBATION. 4369
This is especially marked in rails, due to the workings of the Canadian regular and
countervailing duties^ which have excluded us, in common with other makers outside
of Canada, from participating in the requirements of that market, except in case of
occasional lots of light raHs.
_ Statement "H" is a list of principal plants which have been established in Canada
since January 1, 1905, which consume various classes of steel products which we
manufacture. It will be noted that many are branches of American manufactories
which ha,ve thought it essential to build plants in Canada to maintain their trade.
The railway development in Canada may be appreciated from the published state-
ments of the mileage authorized and under construction in Canada last year, of 5,892
miles, requiring 600,000 to 800,000 tons, as follows:
Miles.
Canadian Pacific : 1, 492
Grand Trunk traffic 1, 900
Canadian Northern 1, 500
Great Northern 1, 000
Total 5,892
And, in addition, a number of other important railways, including the Vancouver,
Victoria & Eastern, the Grand Trunk System proper, the Alberta & Great Waterways
Railway, now building, and Canadian extensions to American railroads, such as the
Delaware & Hudson; also electric railways.
The tonnage of rails reqiured in Canada within the next three or four years is esti-
mated at 750,000 to 1,000,000 tons. Unless the Dominion Iron & Steel Co.'s works
and Algoma works increase their capacity, estimated at 200,000 tons per year, it will
be necessary to import a considerable tonnage, or restrict railroad construction. The
Algoma Steel Co. has recently erected an additional blast furnace and coke plant,
while additions have been made recently to various works, including the Dominion
Iron & Steel Co., Nova Scotia Steel & Coal Co., Dominion Wire Manufacturing Co.,
Hamilton Iron & Steel Co., and Ontario Iron & Steel Co.
The production of pig iron and steel ingots by the Nova Scotia Steel & Coal Co. is
stated to have increased since 1901 at the rate of 20 per cent annually. These facts
illustrate effoijts made to increase capacity, but it will require many years for pro-
duction in Canada to overtake the rapidly increasing consumption.
Of the 410,853 tons of shapes, plates, bars, and skelp consumed in Canada, in 1908,
less than 40,000 tons are understood to have been produced in Canada.
Notwithstanding the depression that prevailed in this country, following the sum-
mer of 1907, Canada suffered only in a reflective measure, due to her proximity to
this country, and, during the past year, has apparently recovered entirely. Business
is considered to be on a more stable basis there than prior to the panic. This year,
a record wheat crop of 175,000,000 bushels is being harvested. BuUding permits
are being issued in Montreal, Toronto, and other large cities of Canada, in larger num-
ber and for larger values each year than formerly.
To take care of its proportion of this increase in business it became necessary last
year for the Canadian Bridge Co. (Ltd.) to increase its capital stock from $400,000
to $1,000,000. It is understood that other structural plants contemplate largely
increasing their facilities to keep pace with the demands on them. If the Canadian
naval propaganda would be carried out, the requirements of steel for ship construc-
tion would be of no little consequence, in which connection reports are now current
of intention on the part of Messrs. Harland & Wolff, shipbuilders of Belfast, Ireland,
to erect a shipbuilding and repair plant at Halifax.
The American Shipbuilding Co. has already begun construction of a Canadian
branch of its industry at Fort William, Ontario. The Canadian Government's pro-
tective policy may be expressed as follows :
First. To impose duties sufficiently high to protect Canadian manufacturers from
the competition of the United States and, secondly, of other countries.
Second. To provide bounties in favor of Canadian makers and assist them with
governmental railway orders, so as to enable profitable operation of the mills and
development of ore properties, employment of labor, etc.
Third. To enable British makers to secure any surplus tonnage which can not be
mianufactured in Canada, by a preferential tariff extended to Great Britain of approxi-
mately one-third of the duty, i. e. British rails paying duty of $5.04 against American
$7.84pergross ton, etc. . , , , , , , .
The intention and effect of this program is to ultimately exclude the makers of this
country from participation of the immense requirements for the development of
Canada's trans-Continental railway system and internal development, unless American
manufacturers will buUd plants in Canada.
4370 UNITED STATES STEEL COEPOEATION.
Such plants have been eagerly received and welcomed, and the same degree of
protection afforded them as to existing plants. Recent information is that the Algoma
Steel Co. intends going into the manufacture of structural shapes, and it is reason-
able to expect large plates and those of boiler quality to be manufacturedin Canada,
in which event our trade in those products will fall into the same position as our
trade in wire rods, bars, etc., for which we can not quote successfully with Canadian
makers.
The inadequate Canadian production preference given us in recognition of good
qiiality, finish, etc., of our products and to some extent mutual interests account for
me considerable tonnage that we are still able to sell, despite duty restrictions and
freight disadvantages.
The Lackawanna Steel Go's, location near the Canadian border renders them a
serious competitor against steel of Pittsburgh origin, at times when their entire product
is not devoted to domestic business. The high protection in Canada and the policy
of the Government in respect to bounties and other encouragement, and the excess
of the demand over the production, offer an exceptional field for the erection of struc-
tural and rail mills, and it is certain that imless we decide to build that other Ameri-
can or English makers will take advantage of the opportunity, whether increasing
business in this country enables them to look for profitable investments or inability
of certain works to operate to full capacity in this coimtry should cause them to
look to the more active and remunerative field in Canada.
While existing Canadian works have been constantly expanding, and new enter-
prises are frequently projected, the expectation of a large plant to be built by the
corporation on the property acquired for this purpose has deferred the erection of
other plants capable of satisfying the surplus demand.
It can hardly be expected, however, that this profitable field will be allowed to
remain unexploited much longer, and it is certain that the longer we hold ofif the
greater will be the output of Canadian makers and the more pressing the incentive
to erect plants capable of satisfying consumption.
Another important feature is the heavy inroads that are being made by Canadian
makers (especially of wire products) in other British Colonies.
Great Britain and colonies receive from New Zealand a preference in duty of 20
per cent and preferential duties are also extended by Australia and South Africa.
A Canadian plant located on the Detroit River will be enabled to sh'ip its products
from its own docks, with saving in freight that would add substantially to the profits,
through the Welland Canal, and thence by water to any part of the world. The propa-
ganda of preference to Great Britain is spreading throughout the colonies, ana with
this proposed plant we will be able to share the benefits of this policy whereas, without
it, our business in British colonies (already practically lost in Australia, New Zealand,
and South Africa) will continue to diminish, as the preference to British and Colonial
makers is fast becoming a handicap difficult to overcome, except by unremunerative
prices. The construction and extension of the Trans-Continenteil Railroad in Canada
IS opening up vast areas which, with the immense great crops of the Northwest, are
destined to become as populous and consequently as large consumers of steel proaucts
within the next generation as our Western States.
The Canadian Northwest is being settled, to a large extent, by Americans, and the
development, in conjunction with Canadian enterprise, has been little short of mar-
velous. This is equally true, though in a comparatively lesser sense, in Ontario,
Quebec, and, other parts of Canada. It is predicted that in 15 years Canada will
have a population of 20,000,000, and Mr. James J. Hill several years ago expressed
the belief that in 50 years the population would be 50,000,000.
It is hardly necessary to go into details with respect to the advantages to be derived
from the Canadian plant, as we believe the situation has been thoroughly canvassed
in the past, and is well understood. Conditions are analogous to those in this country
in the early days of our prosperity. Few other countries have the resources, latent
and developed, and capacity for expansion and internal development that are patent
in Canada. We woula strongly advise careful consideration of this question, with a
view to determining the time when it would be expedient to commence the Canadian
plant, and the extent of the initial construction.
Yours, very truly, J. A. Parrel, President.
UNITED STATES STEEL OOBPOBATION.
Statement A.
Shipments of United States Steel Products Export Co. to Canada.
4371
Products.
Gross tons.
1904
1905
1906
1907
1908
1909
Structural shapes
23,581
92,942
22,307
6,683
29,716
19,704
9,516
30,367
7,671
32,390
20,764
13,618
28,674
10,940
49,554
6,695
42,377
6,187
16,011
30,453
21,015
43,829
2,836
38,396
3,229
8,605
30,921
20,537
31, 321
7,745
23,738
2,604
7,370
9,075
10,358
39,160
18,276
30,615
6,971
12,669
15,871
18,728
Rails and accessories
Plates :
Billets, blooms, slabs, and sheet bars
Wire rods
Skelp
Bars
Total
204,449
144,424
171,292
148,353
92,211
142,289
Note. — Statements B and 0, referred to in attached letter, have been withdrawn
from this file (temporarily at least) because —
The producing cost figures given in B did not comprehend final manufacturing
costs and are not, moreover, costs that at this time should be employed for any
general purpose.
The cost figures given in C were wholly a "guess" and so likewise ought not to be
used in connection with any inquiry at this later date.
Tabulated statement attached, showing bounties from 1897 to 1908, inclusive,
$11,637,966, was not copied with other data in the letter attached.
Statement D.
bounties.
Under provisions of the Canadian law enacted April 27, 1907, and made retroactive
to January 1 of that year, bounties have been, are being, and will be paid as follows,
on materials manufactured in Canada:
Bounty per
gross ton on
material from
foreign ore.
Bounty per
gross ton on
material from
foreign ore.
1907.
Jl,232
1,948
6,720
S2,352
1,948
6,720
Steel...
1908.
9,800
10,920
1,232
1,848
6,720
2,362
1,848
6,720
Steel.
Bods
1909.
9,800
10,920
784
1,176
8,720
1,904
1 176
Steel
Rods -
6,720
1910.
8,680
9, SOS
448
672
4,720
i,eos
672
Steel
6,720
7,840
8,40t
4372
UNITED STATES STEEL OOBPORATION.
Statement G.
Tonnage of shipments by United States Steel Products Export Ck). to Canada; tonnage of Importations
into Canada from all sources; tonnage of production In Canada; tonnage of consumption m Canada
during 1908, in gross tons.]
Commodities.
Our ship-
ments.
Canadian
importations.
Canadian
production.
Canadian
consumption.
7,745
31,321
23,738
2,604
7,370
9,075
10,358
28,134
67,190
33,887
4,417
18,135
30,661
39,460
268,692
(')
41,520
(«)
11,656
174,649
296, 826
Plates
126,785
B Uets and sheet bars . .
75,000
Skelp
Bars
249,077
Total
92,211
221,714
496,517
747,688
I Shapes and wire rods.
' Plates and sheets.
■ Other finished products.
Statement H.
principal works established in canada since 1905 — branches op similar
american companies.
Intemational Harvester Co., Hamilton, Ontario.
Otis Fensen Elevator Co., Toronto.
Dominion Car & Foundry Co., Montreal, Quebec.
Canada Car Co., Montreal, Quebec.
Frost Wire Fence Co., Hamilton, Ontario.
London Fence Machine Co., London, Ontario.
Page Wire Fence Co., Walkerville, Ontario.
Durant-Dort Carriage Co., Samia, Ontario.
Union Drawn Steel Co., Hamilton, Ontario.
Singer Manufacturing Co., St. Johns, Quebec.
McKinnon Dash & Metal Works Co., St. Catharines, Ontario.
Oneida Communitjr (Ltd.), Niagara Falls, Ontario.
Montreal Locomotive Works, Montreal, Quebec.
Whitman & Barnes Manufacturing Co., St. Catharines, Ontario.
Pratt & Letchworth Co., Brantford, Ontario.
Trussed Concrete Steel Co., WalkerviUe, Ontario.
Allis-Chalmers Bullock Co., Montreal, Quebec.
Western Dry Dock & Shipbuilding Co., Port Arthur, Ontario.
DOCUMENT T.
[Subject: Ore shipments, Guyana Bange.l
New York, December 22, 1909.
Mt Dear Sib: Referring to ovir conversation to-day in reference to ore shipments
from the Ouyuna Range, I have been advised that the construction of the "Soo"
line from Thief River PaUs to Duluth, also the branch line to the Ouyuna Range, is
now in actual progress, and promises have been made to the independent mine
owners to handle at least a portion of their shipments for the year 1910.
About two weeks ago I received a letter from Mr. Pennington asking me to advise him
in reference to the type of steel ore cars that we expect to purchase for the Duluth,
Missabe & Northern Railway Co. I replied, stating that flie matter had not been
fully determined, but gave him the information relative to Summers, Clark, and
Rakowsky patent steel cars.
I also learn that Mr. Pennington has been in conference with the Bamett & Record
Co., contractors, of Duluth, Minn., with reference to the construction of an ore dock
on the Wisconsin side of the bay. Some question existed relative to the type of dock
to be built; some recommendation having been made for a car inverter; another
recommendation for the same type of ore-shipping dock that we operate at Duluth.
I understand from Mr. Bamett that Mr. Penmngton has decided to use the same type
of dock that we now use for shipments from the Duluth, Missabe & Northern, and that
work wiU begin at an early date.
The construction work on the Ouyuna Iron Range Railroad, which is controlled
by the "Soo" Une, is in active progress. Grading is being done with steam shovels,
and there is every indication that the railroad will be completed to a connection with
the "Soo" line in time for shipments during the season of 1910 if such shipments are
required. The only obstacle that appears in the way is the short time between now
and spring for constructing an ore dock. We doubt very much if a substantial ore
dock can be built in this Umited time.
Yours, very truly, W. A. McGonaglb,
To Mr. D. G. Kerr,
Second Vice President United States Steel Corporation,
New Yorh.
4373
DOCUMENT Z.
[Subject: Michigan Iron & Land Ck). lands.]
New York, December U, 1909.
My Dear Sir; Inclosed herewith please find letter from Mr. Olcott, as well as joint
letter from Messrs. liJitcheU, McLean, Sebenius, Johnston, and Keese; also report
■from Walter Croze, regarding the Michigan Iron & Land Co. (Ltd.) property.
This group consists of some 400,000 acres, of which 300,000 are ownedTin fee simple
and 100,000 on which the surface and timber have been sold, the company retaimng
the mineral and mining rights. This acreage is stated only in a general way, -because
negotiations are under way from time to time for sale of tintber and surface.
Option No. 1, which is recommended by the parties noted above, is as follows:
"An exclusive option to the OUver Lron Mining Co. for the mineral rights on all the
lands of the Michigan Iron & Land Co. (Ltd.) not at present under lease or option
for five years, the Oliver Iron Mining Co. agreeing to spend $50,000 annually, or
$250,000 in all, for exploration during this period.
" Royalties to be as follows:
" Twenty-five cents flat royalty for entire period of lease. Leases to be granted for
320 acres each; term of lease, 99 years; minimum royalty of $6,000 a year on each
mine of 320 acres or less.
"Pull information as to result of explorations to be furnished the Michigan Iron &
Land Co. as to any properties upon wnich leases may be taken, such information to
be in the form of complete statements and maps of any lands upon which leases are
taken at the time lease is taken; also same information after explorations are com-
pleted as to any lands which the OUver Iron Mining Co. decide not to take under
lease, the lands to be released after explorations are completed and lease not desired."
If option No. 1 is accepted, we have the option on the timber for one year on tide basis
of $3,000,000. As I see it, it is simply a gamble; but, as there is a large acreage of land
and we have a long period to explore same, and as our mining people recommend the
taking of this option, I recommend the corporation accept option No. 1.
I inclose letter and telegram which passed between Messrs. Gayley and Cole, Octo-
ber, 1908, regarding same.
Yours, very truly, D. G. Kerr, Second Vice President.
' To Mr. W. E. CoRET,
President United States Steel Corporation, New York.
4374
DOCUMENT A A.
Abstract from Document AA.
Contract recommended for execution by finance committee March 8, 1910.
(No date given in copy.)
Contract between American Steel & Wire Co. and Monongahela River Consolidated
Coal & Coke Co., whereby 15 new bargea and 25 oldjbarges on the Mississippi River
shall be under the control of^the American Steel & Wire Co. for transporting its prod-
ucts whenever required by the American Steel & Wire Co.; and
Fifth. The primary puq)ose of this agreement is to provide prompt and safe trans-
portation facilitiesjor the products of the steel company and its allied companies, and
the said steel company shall have the prior right to the use of said barges at all times
for the transportation of steel or other products; and southbound cargoes of outside
parties shall not be taken or accepted by the coal company from other parties except
upon the written ^consent or approval of the steel company.
(Note. — ^Third. The term "allied companies," as used in this agreement shall be
understood to mean any company or companies other than the steel company, the
whole or majority part of the stock of which is owned or controlled by the United
States Steel Corporation.)
Initialed: E. H. G.
DOCUMENT DD.
[The answer to this inquiry is " None." But see Chairman Gary's testimony before
Stanley committee (p. 127) concerning loan made by U. S. Steel Corporation with
T. C. I. & R. R. stock as collateral.]
DOCUMENT EE.
[So far as we know there are no data or papers or information on file relating to this
matter beyond that contained in the minute in the finance committee meeting.]
DOCUMENT FF.
(None, so far as our records show or as 1 kLow. — W. J F]
4375
DOCUMENT GG.
[This contract was made before U. S. Steel was organized.]
Agretment, dated this 4th day of February, A. D. 1901, between the syndicate, by its man-
agers (said syndicate being composed of Louis Fitzgerald, George J. Gould, Joseph
Ramsey, jr., and their associates, whose names are subscribed to a certain syndicate
agreement, dated February 1, 1901, copy of which is hereto attached marked "A "),
party of the first part, hereinafter called the syndicate; the Union Railroad Co., party
of the second part, hereinafter called the Union Co.; and the Carnegie Steel Co., party
of the third part, hereinafter called the Carnegie Co.:
Whereas the said syndicate has been formed for the purpose of constructing or pur-
chasing, or constructing and purchasing, certain lines of railroad from Toledo, Onio,
to the city of Pittsbureh, Pa., with branch lines to Cleveland and other towns in Ohio,
and in the States of Pennsylvania and West Virginia, and to a connection with the
tracks of the said Union Co. as now constructed at or near the mouth of Streets Run,
Pa., or as they may hereafter be constructed to a point near the head of Thompsona
Run,_ Pa., both in Allegheny County, or at either or both of said points as said
syndicate, its successors or assigns, may determine; and
Whereas the said Union and Carnegie companies are desirous of having said lines of
railway above described built between said points of connection with the Union Co.'s
tracks, to the city of Toledo, and whereas all of the parties hereto will be mutually
benefited by the construction and operation of said system of railway and connec-
tions aa aforesaid; therefore, in consideration of such mutual benefits, it is agreed
as follows:
I. The said syndicate will proceed with all diligence and dispatch to secure such
franchises as may be necessary in the several States and organize such railway compa-
nies thereunder as may be necessary to construct, purchase, or lease such lines of
railway as may be required to complete said lines of railway above described to the city
of Toledo, and that said syndicate will construct or purchase, -or secure the construc-
tion or purchase, or both, of said lines of railway and the operation thereof after such
conjpletion.
II. That it wiU connect said railway line with the tracks of the Wabash Railroad
Co. at Toledo either directly or through the tracks of existing belt or other railway com-
panies, either by trackage or switching agreement, and tiiat it will arrange a close
traffic contract or alliance with said Wabash Railroad Co., or secure trackage rights over
the tracks of said Wabash Railroad Co. to Chicago, or both.
III. The Union company agrees to transport the cars of the said syndicate over the
railway tracks of said Union company as they are now or may hereafter be constructed
to all the works, plants, and tracks of said Carnegie company and of such other cor-
porations, partnerships, or persons as are now or may hereafter be located on or reached
by the tracks of said Union company, also to the tracks of otiier railway companies,
belt lines, terminals, or private switches with which the tracks of said Union com-
panjr may connect.
Said Union company is to move all cars offered by or consigned to said syndicate
lines to or from any of the aforesaid works, railways, belts, terminals, or private switches
with reasonable diligence and dispatch and without any discrimination against said
gyndicate lines.
For all such services performed by said Union company it shall charge and receive
such switching tolls or trackage charges as may be agreed upon from time to time for
the various classes of service, or as may be charged by said Union company for similar
services performed by it for other companies over said tracks; but for all switching
of traffic to and from the works of said Carnegie company the charges shall not be less
than 10 cents per ton of 2,000 pounds on all traffic rated by the net ton of 2,000 pounds,
and 10 cents per ton of 2,240 pounds on all traffic where tariff rates are fixed by lie gross
ton of 2,240 pounds.
No charge is to be made for moving empty cars which are moved one way loaded.
4376
UNITED STATES STEEL. COEPOEATION. 4377
IV. The Carnegie company agrees to give to said syndicate lines for transportation
over said lines to all points reached by said lines and connections one-fourth of aJl the
traffic, including ore, co£>l, and coke, controlled by said Carnegie company and its con-
trolled or affiliated companies upon or reached by the lines of said Union company, as it
is now or may hereafter be constructed, or on lines owned or controlled by said Union
or Carnegie companies or which the said syndicate lines may reach direct or through
switching arrangements with other railways; when such tonnage is destined to or com-
ing from points within Central Traffic Association territory, i. e.. west of Buffalo and
Pittsburgh, and all points west and south of Central Traffic Association territory,
west of the western State line of Pennsylvania, projected southward^ which can be
reached with reasonable dispatch via the lines of said syndicate and its connections,
subject, however, to the following conditions:
First. There is to be deducted from the total tonnage before computing said one-
fourth freight transported by water, freight routed by consignees, and ores, coal, coke,
and limestones to the works of said Carnegie company over railways owned, conliolled,
or leased by said Carnegie company.
Second. The syndicate lines are to furnish, with reasonable promptness, cars for said
freight, and to transport the same with all reasonable diligence and dispatch to des-
tination or to its connections.
Third. The net freight rates received shall be at all times as low as are obtained by
it or by any other railway company in the Pittsburgh or any other district in the United
States, where such rates place competitors in competition with the Carnegie company:
Provided, That to guard the said lines from any attempt of other railroads to injure it
by offering excessively low rates, the syndicate shall not be required to take any
freight which does not yield to it at least 3J mills per ton per mile, carloads, for dis-
tances of 300 miles and over, and for shorter distances the usual percentage higher per
ton per mile usually charged by iraikoads in such cases.
V. The first pai'ty agrees to secure the organization of such railroad company or
companies as may be necessary to construct, purchase, or lease the system of lines
aforesaid, and it will cause said company or companies to assume the conditions and
obligation resting upon the first party under this agreement, and the second and third
parties hereto agree that they will thereupon release said first party from all the condi-
tions and obligations of this agreement and transfer to said railway company or compa-
nies all the rights and benefits herein granted to said syndicate.
VI. It is mutually agreed that this traffic agreement shall be adopted by the
Wabash Railroad Co. in case of a merger of the syndicate lines and it, or if a traffic
agreement between these lines is made, that it will embrace the promises of this
agreement.
VII. Should any dispute arise under this agreement, it shall be settled amicably
by arbitration, each party choosing one arbitrator, and these two a third in case of
failure to agree, and the decision of a majority of them shall be final and binding
upon both parties.
VIII. This agreement shall be null and void after 30 days unless the proposed
syndicate is fully formed, and, secondly, after Six months, if the proposed new lines
are not secured and the line necessary to reach Pittsburgh is not put under contract.
IX This agreement shall continue in force for 20 years from the date hereof and
thereafter until terminated by one year's notice from either the first or the second
and third parties.
In witness whereof the parties of the first part have hereunto set their hands and
seals, and the parties of the second and third parts have caused their common cor-
porate seals to De hereunto affixed, attested by their respective proper officers, the
day and year aforesaid.
Attest:
R. A. Franks, Secretary.
[seal.]
Attest :
W. W. Blackburn, Secretary.
[seal.]
Union Railroad Co.,
By J. H. Reed, President.
Carnegie Steel Co.,
C. M. Schwab, President.
W. W. Blackburn, Secretary.
Louis Fitzgerald,
Geo. J. Gould,
Joseph Ramsey, Jr.,
Syndicate Managers.
4378
UNITED STATES STEEL COEPOEATION.
Pittsburgh, Pa., June t8, 1905.
Memorandum of agreement by and between Carnegie Steel Co., Pittsburgh, Pa., herein-
after called the sellers, and the Pittsburgh Steel Co., Pittsburgh, Pa., hereinafter called
the buyers, covering the sale and purchase of billets..
QUANTITY.
Buyers' entire requirements yearly of standard soft Bessemer and soft open-hearth
steel billets 4 inches square and under of such sizes as are rolled by sellers, not ex-
ceeding 200,000 gross tons of Bessemer and open-hearth steel billets. Not more than
25 per cent of the total tonnage to be taken each year in Bessemer or open-hearth steel
billets imder 4 inches square.
SPECIFICATIONS,
The kind and quality of material to be supplied under this contract shall be sellers'
standard grade of good merchantable basis open-hearth steel billets with phosphorus
and sulphur, each not to exceed 0.04, and sellers' standard grade of good merchantable
soft Bessemer steel billets with phosphorus and sulphur, each not to exceed 0.10,
sizes li inches. If inches, 2 inches, and 2J inches square, in long lengths of about 30
feet; and the same grade of open-hearth and Bessemer billets 4 inches square, in cuts
of not less. than 100 pounds.
The buyers shall nave the privilege of ordering billets of other carbon than sellers'
standard for soft Bessemer and soft open hearth steel, but not above 0.25 carbon, and
a range in carbon shall always be allowed to sellers' in the execution of orders of four
points; that is, two points over or under the carbon specified.
The buyers' shall have the privilege also of taking under this contract, without
extra charge, not to exceed 2 per cent of the total tonnage ordered in any one quarter
of open-hearth steel above 0.25 carbon, but not above 0.30 carbon, with the same range
of 2 points over or under the carbon specified.
PKIOB.
The price f. o. b. cars buyers' works, Monessen, Pa., and Glassport, Pa., contem-
plated under this contract for Bessemer and open-hearth steel billets 4 inches square
and under shall be fixed lor each three months' period beginning with the third
quarter July 1, 1905, and shall be determined according to the table given hereafter
from the average selling price f. o. b. Pittsburgh of standard Bessemer pig iron for tiie
next preceding three months. The average market price of standard Bessemer pig iron
shall be agreed upon within one week from the end of each month, and the average
price for the three months, within one week from the end of the third month.
In case the parties hereto can not mutually agree upon the average price of pig iron,
is shall be referred to Mr. Albert H. Childs, of Pittsburgh, as arbitrator, and it is also
mutually agreed that any other differences arising under this contract shall be re-
ferred to the said Albert H. Childs, whose decision shall be final and binding upon both
parties. In case of the inability of the said Albert H. Childs to act as arbitrator, each
of the parties to this agreement shall select a person of experience in the iron and steel
trade to act in his stead, and their decision shall be final and binding upon both parties;
and in case of their failure to agree, the two persons thus selected shall select a third
person of experience in the iron and steel trade, and in such case, the decision of two
of the arbitrators shall be final and binding upon both parties.
1 AVhen the average price of
pig iron i3:
The amount to be added to
the price ol pig iron to de-
termine the price of billets
shall be;
1 $10.99 and under
$5.00
5.25
5.50
5.75
6.00
6.25
6.50
(>)
' ll.00tojll.99
12.00 to 12.99
13.00 to 13.99
14.00 to 14.99
15.00 to 15.99
le.OOto 16.99
17.00to 17.99
> At the same ratio until the price of billets 4 inches square and under to the buyers sliall be $24 per grow
ton, but in no event shall the price to the buyers for billets 4 inches square exceed $24 per gross ton at any
time during the life of this contract.
UNITED STATES STEEL CORPOBATION. 4379-
TEBMS AND PAYMENT.
Settlements to be made in net cash on the 20th of the month following shipment,
with the privilege to buyers of substituting their 60 days' notes, with interest at 5
per cent per annum after the 20th day of month following that within which ship-
ment is made, and with the privilege of discoimting sellers' bills at the same rate oi
5 per cent per annum for the unexpired time.
DELIVBRT.
Buyers '^works, Monessen, Pa., and Glassport, Pa., f. o. b. cars in carload lots.
SHIPMENT.
The buyers shall give specifications imder this contract at least 20 days before ship-
ment is required, and the sellers agree to and do guarantee to give preference to de-
liveries under this agreement over the deliveries nmde to any other buyers of the same
classes of material except constituent companies of the United States Steel Corporation;
and the buyers shall also give notice fo the sellers on the first day of each month of the
number of tons each of 4-iiich billets and billets under 4 inches that will be required
for the succeeding month. For example, on the Ist day of Jime notice shall be given
of the number of tons of 4-inch Bessemer and open-hearth billets, and the number of
tons of Bessemer and open-hearth billets under 4 inches, required for the month of
July, and the material ordered for shipment in any one month will be charged for
at the ruling price for the quarter within which shipment is specified; provided
always, that the sellers shall not be called upon to make deliveries at a rate exceeding
500 tons of 4-inch square billets, 165 tons of billets imder 4 inches square per working-
day, but in case of the inability of the sellers to make shipment of the total tonnage
ordered for delivery during any one quarter, the tonnage unshipped at the end of the
quarter shall be delivered during the succeeding quarter at the price ruling for the
quarter within which shipment was specified.
DT7EATI0N OP CONTRACT.
This agreement is to cover a period of five years from July 1, 1905, to June 30, 1910,.
provided always, that either party shall have the right to terminate the contract at
the end of three years by giving 12 months' written notice to that effect, which notice
may be given at any time on or before July 1, 1907.
EEMARKS,
By mutual consent of the two parties to this agreement, all provisions of another
contract existing between the parties hereto and bearing date of March 17, 1905, axe
rescinded, and that contract known as sellers' contract CGr-4009 and covering the sale
of 121,000 gross tons of 4-inch square billets and billets under 4 inches square is, in
consideration of the present contract and agreement, canceled, and rendered null and
void. .
The sellers are hereby given the right to have any constituent company of the
United States Steel Corporation furnish material of the same kind and quality, at the
same cost to purchaser, m whole or part performance of this contract, and it is agreed
that shipment and billing of the material by or in the name of such constituent com-
pany, as well as any payment made to such constituent company therefor, shall be as
effective and binding as if made by or to the Carnegie Steel Co. direct.
Strikes, differences with workmen, or other contingencies beyond the control of
the respective parties hereto shall be sufficient excuse to either party for failure to
make or accept deliveries imder this contract during the continuance of such con-
tingency, but upon its removal, this contract shall be resumed without any extension
of time by reason of such suspension.
It is made a condition of this contract that the buyers shall not resell any of the
material furnished hereunder without having first put the same throi^h a process of
manufacture at their works. ..,.,,, . ,
In case of any change in the business organization of either of the parties hereto, this
contract shall be assumed by the successors. . , . . , ,.
In witness whereof, the parties hereto have signed this contract, in duplicate, the
day and year first above written. „ ^
Carnegie Steel Co.
H. P. BoPE,
First Vice President,
' Pittsburgh Steel Co.,
Wallace H. Rowe, President.
DOCUMENT HH.
Caenegie Steel Co.,
Pittsburgh, Pa., June g8, 1905,
The Pittsburgh Steel Co.,
Wallace H. Rowb, President, Pittsburgh, Pa.
Dbab Sib: Supplementary to the a^eement between us of this date, it is further
agreed and understood that in determining the price of Bessemer pig iron under the
contract f. o. b. cars Pittsburgh, we will add to the valley price oi pig iron an arbi-
trary rate of 40 cents per gross ton instead of the regular rate of 85 cents.
It is also agreed and understood that we will discontinue prepayment of freight,
but let the freight go collect, deducting the regular tariff rate from our invoices to
make the delivered price.
It is further understood and agreed that during the next year you are to take from
the Republic Iron & Steel Co. the tonnage covered by a certain contract which yon
have with them, dated March 22, 1905, for 72,000 tons of material, and that this ton-
nage will be deducted from the maximum stated in the contract for this period.
AH other points mentioned by you have been covered in the regular contract.
Yours, truly, ' ,
Carnegie Steel Co.
H. P. BoPB,
First Vice President.
Accepted.
Pittsburgh Steel Co.
Wallace H. Rowb,
President.
4380
DOCUMENT JJ.
[These are samples only. If more are wanted, will get out all we have in flies.)
United States Steel Oohpokation,
Office of the Pibst Vice President,
New York, February 6, 1911.
Dear Sir: Schedule of operations for week of February 5 to 11, inclusive, is as
follows:
Carnegie Steel Co. — Edgar Thomson: No. 1 and 2 mills will operate about 24 per cent
capacity; No. 3 mill, about 50 per cent.
Homestead: The 28-inch and 38-inch blooming mUla will start Monday at 7 a. m.,
the 38-inch mill operating single turn. Bessemer department will not operate.
Duquesne: Based on present conditions, all billet and blooming mills will operate
about 70 per cent.
Clairton, about 65 per cent.
Ohio will start part of open-hearth furnaces and 100 per cent Bessemer capacity;
Mingo, 100 per cent; Bellaire, 100 per cent; New Castle, 100 per cent; South Sharon,
40 per cent; North Sharon and Columbus, idle.
Illinois Steel Co. — South Works: Five open-hearth furnaces operating full week, 19
idle; converting works, rail mill, and No. 2 blooming* mill, idle; remainder plant
operating from 2i to 4 days.
Joliet: Converting works and billet mill, operating full week; remainder plant
operating from 3 to 5 days.
Milwaukee: All mills idle. ,
Indiana Steel Co. — Gary: Eleven open-hearth furnaces operating full Week, 17 idle;
rail mill idle; remainder plant operating full week.
National Tube Co. — Rail mill at Lorain operating; Riverside department idle.
Tennessee Coal, Iron & Railroad Co. — ^Ensley steel plant, blooming mill, and rail
mill operating double turn.
Bessemer rolling mills operating single turn, except 84-inch plate mill double turn.
Status of blastfurnaces Feb. 4, 1911.
Total
stacks.
Out.
Banked
Total
idle.
capacity
Per cent
own
capacity
Idle.
Per cent
corpor-
ation.
capacity
69
19
11
9
13
8
21
16
4
2
10
6
::;:::::
21
15
4
2
10
6
223,700
174,000
46,000
13,500
62,400
67,500
33.2
78.4
32.7
13.61
71.8
62.0
16.8
13.1
Tube
3.4
1.02
4.7
6.1
Total
119
67
67
687,100
44.12
55.88 per cent operating.
31572— No. 53, pt. 3—12 5
4381
4382
UNITED STATKS STEEL, CORPORATION.
Comparison of operations.
CameRio;
Plntos
Bar oud hoop.
.\xl,>
sinu'lural
School!
Tubo Co
BridRO.
Sheet A Tin:
Shootmills
Tin mills _
Wire (\i
Furnaces operating
Pig-iron inventory (ons.
This
" I.llSl
week.
week,
Feb. (i.
Jan. Ml
Per cent.
Percmt.
60
37
65
00
Idle.
20
;l:i
30
1(H)
.Ml
T;i.76
7,'-.. 13
7.''i [
(>i)
.'i-l
S'J
SO
S7J
-S'J
.'i.'i. ss
,111. ,'iS
■-'07, '.'.v.!
•JOM.IKIO
Siuiie
week last
month
Jan. 0.
I'(r cent.
SI
.'il
.'i7, 22
7fi
•C.l
•ik or>
Siunc
week last
month,
Feb. 7,
1010,
I'rrcent.
04
01
00
00
100
s:t,w
90
78
02.03
336,007
PIO-IRON INVENTORY, FEB. 1, 1011.
Tons.
Bessemer 40, 110
Basic
Foundry and mill
Low phosphorus
Charcoal and miscollanoous
Stock Jan. 25 . . .
Decrease.
112,172
36,020
16,. W
4,662
■-'tl7,'.I.VJ
■JUS, 1130
1,087
Carnegie
Tube
Wire
Lorain . . - -
Illinois .steel.
Sheet & Tin.
Johnstown. . .
Hriili;o
Toiuiossoo. , . .
Indiuiia
Total.
Yours, truly,
Mr. J. A. FAnnELi, President.
Jan. 26.
Fob. 1.
Tons.
Tons.
■IL'.OIllI
11,0(17
7,(112
7,().1H
■-•1,77.1
2I,(174
(il(l
ill'.'
■.'■!,. WS
■J.l, f.'ll
,s,:.ii.'',
,s,;mo
11,11
■sen
7,H71
7,'mM
7.1,, W.|
7s,ris.i
16,636
1,1,(KI'J
■Jii,s,ii:i!i
2(17, ■-'52
Inoren.'a'.
I'ona.
Ileoreftso.
7'onj.
072
100
208
.'■|7I
160
Si
403
633
017
2,1104
Fir.il. 1 'ice President.
United States Steel (lonroEATioN,
OrricE OP THE FinsT Vice President,
New York, January SO, 1911.
Dear Sir: Schedule of operations for week of January 2!l to February 4, inclusive,
is as follows:
Carnegie Steel Co.— Edgar Thomson: No. 1 and 2 naills will operate about 24 per
cent; No. 3 mill, about 60 per cent.
Homestead: The 28-inch blooming mill will start Monday at 7 a. ni.; the 38-inch
mill Wednesday at 7 a. m. Bessemer department will not operate,
Duquesne: Based on present conditions, all billet and blooming mills will operate
about 52 per cent capacity.
Clairton: Blooming ancl billet mill will operate about 90 per cent.
Ohio: Will start part of open-hearth furnaces and about 95 per cent Bowemer
capacity.
Mingo, 71 Der cent; Bellaire, 54 per cent; New Castle, 96 per cent; South Sharon,
32 per cent; North Sharon and Columbus idle.
UNITED STATES STEEL CORPORATION.
4383
lUmois Steel Co.— South works; Five open-hearth furnaces operating full week,
19 idle; light-rail mill operating full week; converting works, rail mill, and No. 2
bloorniug mill idle; remainder plant operatmg from two to five days.
Joliet: Converting works and billet mill w3l operate full week; Monran mill idle;
remamder plant operating from three to five days.
Milwaukee; Xo. 1 9-iach miU operating fuU week; 12-inch mill operating 4 days;
remainder plant idle.
Indiana SUcl Co. — Ct;u>-: 11 open-hearth furnaces operating full week, 17 idle;
rail mill operating 2 days ; remainder plant operating full week.
National Tube Co. — Lorain rail mill operatmg; Riverside department idle.
Tmnessee Coal, Iron it- RaUroad Co.— Enslev steel plant, blooming mill, and rail
mill operating double turn.
Bessemer rolling mills operating double turn, except 8-inch guide mill single tui-n.
Status of blastfurnaces, Jan. :^S. 1911.
; Total
stacks.
Out. Eaiiked.
Caruegie 59
niiuois 19
Tube 11
Wire
Tennessee
Indiana. i
I
Total I
Total
idle.
Percent, £«^^t
Capacity I OTni ca- \ "^^Jt
""*■ idle.
T,l. 7(W
174. IW
09, SCO
41.2
7S. 4
4-J.3
21
13.1
4.5
9
13
s
a
10
5 ..
10
5 !
13,500
|.2,4lXl
67,500
13.61
71. S
t 2
1,02
4,7
5 1
1
119 1
.^
ra ;
6S4,l-CO i.
49.42
50. .^S per cent operating.
Comparison of operations.
Carnegie:
Plate department.
Bar and hoop
Axle.
Structural
S^'hOOU
Tube Co
Bridqe
SlieoT i Tin Plate:
Sheet mills.
Tin mills
Wire Co
Fun .\>'e^ operating..
Pis-iron inveutorj-..
This
week.
Jan. 30.
Last
week.
Jan. 23.
Same
week
last
month.
Dec. 27,
1910.
Same
year
Jan. 31,
1910.
P,rc<:i;. Per cent. Per can. Percent
50
20
30
4o I
75.13 i
59
79
50. .N"^
-tons.. 2t>s,ft»
4S
52
3i5
45
SI
47.S,v
21.0tX1
52
SO
20
SO
45
4B.21
29
50
C7
217, or
100
95
e,6
99
7S
85.42
90
74
97
91. 9S
32S,059
PIG-IROX IXVEXTORY. JAX. *:
5. 1911.
Tons.
3*; 5tH\
B«^c.
-. . ll(i tOO
15,535
:XVS.939
■»1 0^
Decrease
12.061
4384
UNITED STATES STEEL CORPORATION.
Jan. 18.
Jan. 25.
Increase.
Decrease.
Ton*.
48,690
7,601
23,714
. 3,580
21,799
9,286
937
7,722
82,047
16,716
Ttmi.
42,939
7,612
21,774
610
24,668
8,605
961
7,871
78,684
16,535
Tom.
Tom.
6,700
Tube . .
Ill
Wire
1 940
2,970
Illinois Steel
2,769
Sheet & Tin
780
Jnhnstniffn
14
149
TenTiPAifip. ,
3,463
181
Total
221,000
208,939
3,033
16,004
Yours, truly,
Mr. W. E. Corey, President.
First Vice President
United States Steel Corporation,
Office of the First Vice President,
New York, January gS, 1911.
Dear Sir: Schedule of operations for week of January 22 to 28, inclusive, is as
follows:
Carnegie Steel Co. — Edgar Thomson: Nob. 1 and 2 mills will operate about 22 per
cent. No. 3 mill will operate about 50 per cent.
Homestead: The 28-inch blooming mill will start Monday morning, at 7 a. m.; the
38-inch mill Wednesday at 7 a. m. Bessemer department will not operate.
Duquesne: Based on present conditions, all billet and blooming mills will operate
about 53 per cent.
Ckirton blooming and billet mill will operate about 50 per cent.
Ohio works will start part of open-hearth furnaces and about 80 per cent Bessemer
capacity.
Mingo will operate about 68 per cent capacity; Bellaire, 58 per cent;'New Castle,
79 per cent: South Sharon, 33 per cent; North Sharon and'Oolumbus idle.
Illinois Steel Co. — Souli works: 5 open-hearth furnaces operating full week, 19
idle; light-rail mill operating full week; converting works, rail mill, and No. 2 blooming
mill idle; remainder plant operating from 2 to 4 days.
Joliet: Converting works, billet mill, and merchant mill operating full week;
Morgan mill idle; finishing mill and rod mills operating 4 to 5 days.
Milwaukee: Twelve-inch mill idle; remainder plant operating from 2 to 4 days.
Indiana Steel Co. — Eleven open-hearth furnaces operating full week, 17 idle; rail
mill operating 3 days; remainder plant operating_ full week.
National Twe Co. — Rail mill at Lorain operating; Riverside idle.
Tennessee Coal, Iron & Railroad Co. — Ensley steel plant, blooming mill, and rail
mill operating double turn.
Bessemer: Eight-inch guide mill single turn; 16-inch bar mill and 84-inch plate mill
double turn.
Statiis of blast furnaces Jan. 10, 1911.
Total
stacks.
Out.
Banked.
Total
Idle.
29
18
6
2
10
5
Capacity
Per cent
own
«.^^lty
Per cent
corpora-
tion
Carnegie
59
19
11
9
13
8
27
15
6
2
10
6
2
318,700
174,000
69,600
13,600
62,400
67,600
47.3
78.4
42.3
13.61
71.8
62
24
nilnofa
13.1
Tube
4.5
Wire
1.02
4.7
Indiana
6.1
Total
119
64
2
66
696,600
52.42
47.58 per cent operating.
UNITED STATES STEEL COEPOEATION.
Companion of operations.
4385
This
week,
Jan. 23.
Last
week,
Jan. 16.
Same
week last
month,
Dec. 19.
Same
week last
year,
Jan. 24,
1910.
Carnegie:
Plates
Per cent.
60
30
30
27
60
73.21
70
60
78
80
47.58
221,000
Per Cera.
47
66
20
40
60
66.46
70
60
76
78
46.38
228,568
Per cent.
28
39
20
23
45
19.82
76
60
51
32}
60.16
221, Ui
Per cent.
100
Bar and hoop
97
Axle
66
Structural
97
Schoen
75
Tube Co
85.42
BrldgeCo .
90
Shee!&Tin:
Sheet mills
85
Tin mills
73
Wire Co
95
Furnaces operating
91.95
Plg-lron Inventory tons
339, 139
Pia-mON INVENTORY, JAN. 18, 1911.
Tons.
Bessemer 43,219
Basic 123,366
Foundry and mill .- 34,405
Low phosphorus 16, 660
Charcoal and miscellaneous 4, 361
221,000
Stock, Jan. U 228, 668
Decrease 7, 568
Jan. 11.
Jan. 18.
Increase.
Decrease.
Tom.
53,620
7,651
23,442
6,428
22,727
8,018
1,024
8,209
80,764
16,279
Tom.
48,699
7,601
23,714
3,580
21,799
9,286
937
7,722
82,047
16,716
Tom.
Tma.
4,827
60
Wire
272
2,848
nilnola Steel
928
667
87
487
1,283
663
Total
228,568
221,000
2,222
9,790
Yours, truly,
Mr. W. E. Corby, President.
First Vice President.
United States Steel Corporation,
Office op the First Vice President,
New York, January 16, 1911.
Dear Sir: Schedule of operationa tor week of January 15 to 21, inclusive, is aa
follows:
Carnegie Steel Co. — Edgar Thomson: No. 1 and 2 mills will operate about 20 per cent
of capacity. No. 3 mill will operate about 50 per cent.
Homestead: The 28-inch blooming mill will start Monday morning; the 38-inch
mill, Wednesday morning. Bessemer department will not operate.
Duquesne: Based on present conditions, all billet and blooming mills will operate
about 47 per cent.
Clairton blooming and billet mill will operate about 40 per cent.
Ohio works will start part of open-hearth furnaces and about 67 per cent Bessemer
capacity.
Mingo, about 63 per cent; Bellaire, 50 per cent; New Castle, 61 per cent; South
Sharon, 51 per cent; North Sharon and Columbus idle.
4386
UNITED STATES STEEL. COEPOBATION.
Illinois Steel Co. — South Works: Five ojjen-hearth furnaces operating full_ week;
converting works, rail mill, and No. 2 blooming mill idle; light-rail mill operating full
week; remainder plant operating from 2J to 3 days.
Joliet: Converting works, billet mill, and merchant mill operating full week;
remainder plant operating from 4^ to 5 days.
Milwaukee: No. 1 9-inch mill, No. 2 9-inch mill and 21-inch mill, idle; 8-inch mill
operating full week; remainder plant operating from 3 to 4 days.
Indiana Steel Co.^Gary: 11 open-hearth furnaces operating full week, 17 idle; rail
mill operating 4 days; remainder plant operating full week.
Natvmal Tube Co. — Lorain: Rail mill operating. Riverside department idle.
Tennessee Coal, Iron & Railroad Co. — Ensley steel plant, blooming mill and rail mill
operating double turn.
Bessemer rolling mills operating single turn, except 84-inch plate mill double turn.
Status of blastfurnaces, Jan. 16, 1911.
Total
stacks.
Out.
Banked.
Total
idle.
Capacity
Mle.
Per cent
own ca-
pacity
idle.
Per cent
corpora-
tion ca-
pacity
idle.
59
19
11
9
13
8
28
15
5
2
10
5
3
31 336,700
15 174,000
5 59, 500
50
78.4
42.3
13.61
71.8
62
26.2
Illinois
13.1
Tube
4.6
Wire
Tennessee
2 13,500
10 62,400
5 : 67,500
1.02
4.7
6.1
Total .
119
65
3 68 1 7T2.Bnn
53.62
46.38 per cent operating.
Comparison of operation's.
This
week,
Jan. 16.
Last
week,
Jan. 9.
Same
week last
month,
Dec. 19.
Per cent.
Per cent.
Per cent.
42
51
37
30
68
48
25
25
20
31
61
60
46
45
50
06.46
57.22
68.83
70
70
76
60
51
62
74
73
41
78
76
76
46.38
48.66
60.16
228,668
232,837
221,144
Same
week last
year, Jan.
17, 1910.
Carnegie:
Plates
Bar and hoop
Axle -.
Structural
S choen
Tube Co
Bridge
Sheet & Tin:
Sheet mills
Tin mills
Wire Co
Pumaces operating
Pig-iron inventory tons
Pa cent.
100
75
89.58
90
85
72
96
92.93
341,268
PIG-IRON INVENTORY, JAN. 11,1911.
Tons.
Bessemer 48,611
Basic 126,359
Foundry and mill 34,424
Low-phosphorus , 16,192
Charcoal and miscellaneous 4, 082
228 668
Stock, Jan. 4 232',837
Decrease 4,269
UNITED STATES STEEL CORPOBATION.
4387
Jan. 4.
Jan. 11.
Increase.
Decrease.
Carnegie
Tom.
56,S2S
S, SIS
21,077
6,S34
27. 734
7.733
1,104
7,290
7S. 44il
16.364
Tofu.
53,526
7,551
23.442
6;428
22,727
8,618
1,024
8,209
80,764
16,279
Ton*.
Tons.
3.302
Tube
1,267
Wire
1,765
Lorain
406
Illinois Steel
5,007
Sheet* Tin
885
SO
Bridge
913
2,315
Indiana
So
Total
232. S37
228,568
5,S7S
10.147
Yours truly,
Mr. ^V. E. CoKET, President.
First Vice President.
DOCUMENT KK.
Philadelphia, January 12, 1911.
Hon. E. H. Gary,
Chairman United States Steel Corporation, 71 Broadway, New York.
Dear Judge: I have waited until you could have your meeting with the steel
manufacturerB off your mind before wnting to you about an importsmt matter which
has been on my mind for several weeks. In November last, after the election was
over, I received a call from the Hon. George B. Curtiss, of Binghamton, N. Y., a
lawyer like yourself, United States district attorney, and the author of Protection and
Prosperity, the most valuable contribution to the world's tariff history that has ever
been written. I send you a copy of the book by express to-day and hope that you
can find time to examine it. Mr. Curtiss called to urge our association to assist him
in publishing a second edition of his book — this time in two volumes. He said,
which I myself also firmly believe, that our protective policy, upon which the whole
prosperity of the country rests, is in danger of going down to defeat if extraordinary
efforts are not now made to educate the people to sustain it, and particularly the leaders
of the Repubhcan Party. This can be done only through the liberal use of printer's
ink in books, newspapers, and magazines, the lack of which liberal use in recent
years is one leading cause of the demoralized state of the public mind to-day on the
tariff question, another cause being the evil influence of men who have been elected
or appointed to high office as protectionists, but who are at heart free traders so far
as free trade is possible in this country.
Mr. Curtiss said that he has already revised Protection and Prosperity, which was
published in 1896, bringing down to the present time all essential details of tariff
legislation in Great Britain, Germany, and the United States, particularly in our
own country. As his bo9k is really a cyclopedia, his thought was that the new edi-
tion should be placed in the hands of every Senator and Representative in the new
Congress, and as a book of reference for professors and students in our colleges and
universities; also in the offices of leading newspapers. An estimate of the cost of
a new edition of 3,000 sets (in two volumes) will be found in a letter to me, which I
requested him to write, and a copy of which you will find inclosed. Please notice
that Mr. Curtiss asks and expects no reward for the labor he has expended or may
expend in the preparation of a new edition. His work upon it would be a labor
of love entirely. He could have everything in readiness for the publication of a
new edition early in the coming summer.
In my interview with Mr.'Curtiss in November I frankly told him that I could not
guarantee the payment of the $8,000 that would be necessary to publish the 3,000
copies of his book; that we had no fund that we could draw upon for this purpose.
He suggested that I submit the matter to a few of the leading members of our asso-
ciation, which I promised to do, but I said that I could not do this immediately.
It so happened that Mr. Curtiss was again in town last week on professional business
and called to see me. He is a gentlemen of very great ability. I wish that you could
see him.
The history of this association from the beginning has always embraced the care of
our tariff interests. Until the death of Mr. Wharton and my own hospital experience
we both gave our personal attention to Washington affairs. For many years we com-
piled and printed tracts which were systematically distributed in all States that were
doubtful on the tariff question. We encouraged the preparation of textbooks dealing
with the doctrine of protection and have paid for their publication — books by Henry
C. Carey, Judge Kelley, Dr. William Elder, Prof. Van Buren Denslow, Prof. R. E.
Thompson, David H. Mason, Giles B. Stebbins, and Gov. Henry M. Hoyt. These
books we placed in libraries and sent to Congress. Of course, all the work I have men-
tioned costs many thousands of dollars, but this work, in conjunction with liat done
by other trade organizations, has kept our protective policy practically unharmed to
the present time. We had in our association for many years what was called, a tariff
fund. We have had no such fund for a number of years, else I would not have brought
to your attention the special work done for me by Speaker Reed and the needs of the
Home Market Club.
A protective tariff or a virtual free-trade tariff is the issue to be settled in 1912. _ I
suppose it is useless to take any steps to prevent the present Tariff Board from being
made a permanent tariff commission, but we do not want its recommendations or
4388
UNITED STATES STEEL COEPOBATION. 4389
conclusions looking toward free trade to be approved by Congress or to be embodied
In the Republican national platform of 1912. Even if the duties on iron and steel
could be further reduced without serious injury to our iron and steel industries so far
•9 prices and foreign competition are concerned, the iron trade of the country could not
be prosperous if serious injury should be done to other industries through tariff reduc-
tions. Our iron and steel manufacturers must have a prosperous country to insure
them an active home market for their products. Of course, you all know this. I men-
tion this partly because in 38 years spent in liiis office I have many times witnessed
the disastrous effects upon the iron trade of low duties or the efforts of our enemies to
enact them.
This is already a longer letter than I intended to write. What I would like to have
you do is to ask your finance committee to approve a contribution of $4,000 toward the
publication of Mr. Ourtiss's two volumes. If the committee will do this, I will ask the
following companies to contribute $1,000 each: Republic, Pennsylvania, Lackawanna,
Jones & Laughlin, and Cambria, making altogether $9,000. This is $1,000 more than
the $8,000 mentioned, but the packing, expressage, etc., on 3,000 sets of two volumes
each would cost a large sum, all to be accounted for, of course. AU checks to Mr.
Curtiss when the books are ready for distribution. There is no immediate hurry for an
early reply, but an early reply would be appreciated.
Very truly, yours, • James M. Swank.
BiNGHAMTON, N. Y., November 21, 1910.
I propose to bring out a new edition in two volumes of about 700 pages each of Pro-
tection and Prosperity, volume 1 to be devoted to the tariff question of the United
Kingdom and oliier foreign coimtries; volume 2 to a discussion and history of the
tariff question in the United States from the beginning of the colonial period to the
present time. The present edition, which -was published in the spring of 1896, brought
the history of the question down to about the 1st of January, 1895. In the new edition
I propose bringing the history of England and other foreign countries down to the
present time. My treatment of the question so far as it relates to the United States
begins at page 564, and was made very brief for several reasons, the principal one being
lack of time in order to get the book on the market in the spring of 1896. This part I
have revised, beginning with the colonial settlements, thoroughly treating owe indus-
trial developments from the earliest time to the formation of the Government, which
will be a new and valuable contribution to the literature on the subject. I have
entirely rewritten the subject from the formation of the Government to 1860. This
will give a new and I think the most valuable exposition of the early tariff history of
this country to be found anywhere.
I propose bringing the .treatment of the subject from 1895 down to the present time,
completing the disciission with the disastrous effects of the Gorman-Wilson bill, and
amplifying very fully our amazing industrial growth and prosperity under the Dingley
bill, and also explain fully the Dingley and Payne-Aldrich bills, and conclude with a
specific answer to the criticism^ which are now being urged against our tariff policy,
and a specific defense of the principal industries of the country which are now threat-
ened with attack. I believe that the new edition when completed will be in every
respect more satisfactory than the old one and will be approved by the manufacturing
interests of the country.
The present edition occupied my time and thought for more than 16 years, as much
of it as I could spare from the necessary demands of my profession. I believe that the
country is now confronted with a reopening of the question, and a campaign of education
after flie old fashion must be instituted to save the country from the disasters which are
sure to follow a downward revision of the tariff.
Since talking with you I have had a rough estimate made of what it will cost in cash
to bring out a new edition of 3,000 sets of two volumes each, and find that it will probably
require an expenditure of about $8,000. I think this sum would safely cover it. This,
of course, means good binding and a handsome edition. My idea is that the parties who
advance the money to get out this edition are to take the edition and present it to
libraries and such persons as they believe would do the most good with the book. The
plates and copyright are to belong to me.
Very respectfully, Geo. B. Curtiss.
DOCUMENT LL.
[So far as we know or are able to ascertain there was no written proposition covering
the negotiations referred to. No arrangement or agreement of any kind was ever
consummated on basis of the proposition then being negotiated for, as referred to in
the minutes.]
DOCUMENT PP.
VOLUME OP BUSINESS 1910.
Sales to customers outside of United States Steel Corporation organi-
zation $456, 527, 766. 66
Sales between subsidiary companies of United States Steel Corpo-
ration 184, 640, 392. 24
Gross earnings of transportation companies '56, 176, 740. 18
Gross receipts of sundry companies — gas, supply, land, water, etc. . . '6, 616, 525. 33
703, 961, 424. 41
' No record has been kept showing how much of these Items of gross revenue was collected from other
subsidiary companies for service or supplies furnished and how much from outside Interests.
4390
DOCUMENT QQ.
Exhibit QQ may be condensed in substance as follows:
Purchases of preferred stock, 253,882 shares, value $23, 781, 868. 72
Sales of preferred stock, 241,675 shares, value 22, 052, 881. 00
1 728 987 72
Onhand, 12,207 shares, value -■ '80l'50o!50
Loss 927,487.22
Purchases of common stock, 111,610 shares, value 7, 000, 770. 00
Sales of common stock, 108,005 shares, value 6, 580, 832. 22
419, 937. 78
Onhand, 3,605 shares, value 276,775.00
Loss 143,162.78
The United States Steel Corporation, in addition to the above, each year bought
and sold marketable securities, and during the year 1907 it bought and sold market-
able securities amounting to over $7,000,000. The securities dealt in were mainly
United States Steel Corporation 50-year 5 per cent gold bonds and 10-60-year 5 per
cent gold bonds; Union Steel Co.'s 5 per cent gold bonds and collateral trust, bonds;
American Stearnship Co.'s 5 per cent gold bonds; Monongahela Southern Railroad
Co.'s first-mortgage 5 per cent gold bonds; Pennsylvania Co.'s collateral 4^ per cent
trust notes; Inter-Ocean (newspaper) first-mortgage bonds; Sharon Coke Co.'s first-
mortgage bonds.
4391
DOCUMENT SS.
Memorandum of agreement made this thirtieth day of April, 1904, by and between Carnegie
Steel Company, hereinafter called the Sellers, and the Crucible Steel Company of
America, hereinafter called the Buyers, both of Pittsburgh, Pennsylvania:
Whereby the Sellers, in consideration of the payments and covenants herein agreed
to be made and performed, a^ee to furnish and deliver, free on board cars at Buyers'
works, Pittsburgh, on the basis herein stipulated, and subject to the terms and condi-
tions of this contract, all the Bessemer pig iron, both sand cast and chilled, the basic
f)ig iron, the standard Bessemer billets not to exceed .28 carbon, such open-hearth bil-
ets as the Buyers are unable to supply themselves, the low-phosphoriis pig iron, and
the 80 per cent ferromanganese, required in the operation of Buyers' works, to the
amounts of the said materials as hereinafter stipulated.
This agreement to cover a period of ten (10) years, beginning with October 1st, 1904,
as to billets, and to take effect May 1st, 1904, as to other products, and to cover the
actual consumption of the Buyers of the several materials hereinbefore mentioned.
First. As to Bessemer pig iron: When the average market price for standard Besse-
mer iron, f . 0. b. Pittsburgh, shall be eleven dollars ($11.00) per gross ton or under, Ihe
Buyers to be allowed a differential of 2^ per cent; over eleven dollars ($11.00) to and
including fifteen dollars ($15.00), 5 per cent; over fifteen dollars 015.00^ to and
including twenty dollars ($20.00), 7J per cent; over twenty dollars ($20.00), 10 per
cent.
Secohd. As to basic pig iron: ^Vhen the average market price for basic pig iron,
f. 0. b. Pittsburgh, shall be eleven dollars ($11.00) per gross ton or under, the Buyers
to be allowed a differential of 2^ per cent; over eleven dollars ($11.00) to and incluaing
fifteen dollars ($15.00), 5 per cent; over fifteen dollars ($15.00) to and including twenty
dollars ($20.00), 7^ per cent; over twenty dollars ($20.00), 10 per cent.
Third. As to billets: Based upon the above figures for standard Bessemer pig iron—
Amount to be
added above
price of pig
When the price of pig
iron to fhe Buyers
per gross ton Is—
iron for stand-
ard soft Besse-
mer and open-
hearth billets
4 Inches square
and larger.
tobe—
$8. 00 to $8. 99
$4.70
9. 00 to 9.99
4.8S
10. 00 to 10. 99
5.00
11. 00 to 11. 99
5.25
12. 00 to 12.99
6.60
13. 00 to 13. 99
5.76
14. 00 to 14. 99
6.00
15. 00 to 16. 99
6.26
16. 00 to 16. 99
6.50
17. 00 to 17. 99
6.76
Over S18.00 in the same proportion.
The price of billets smaller than 4" x 4", in thirty (30) foot lengths, shall be one
dollar ($1.00) per ton higher than the price of billets 4'' x 4" and larger, on the same
pig-iron basis.
The price for .28 carbon Bessemer steel billets shall be one dollar ($1.00) per gross
ton higher than the price for standard soft Bessemer steel billets about .10 carbon.
As to open-hearth billets over .28 carbon, the price shall be, for carbon .28 to .60,
one dollar ($1.00) per ton, and for billets over .60 carbon, two dollars ($2.00) per ton,
over base price for standard soft open-hearth billets.
4392
UNITED STATES STEEL OOBPOBATION. 4393
The Buyer shall not be obligated to take such high-carbon open-hearth billets as
can be made by himself.
The Seller agrees to furnish, if required, to the Buyer, such nickel-steel blooms
within the Seller's capacity as the Buyer may need at ten dollars ($10.00) per nickel
unit over the price of the carbon steel.
Fourth. As to low-phosphorus pig iron, the differential in price to be four dollars
($4.00) per ton above the Sellers' price to the Buyers for standard Bessemer pig iron,
f. o. b. Pittsbuigh.
Fifth. As to ferromanganese: Buyers shall be allowed a differential of seven and
one-half per cent (7J per cent) from the market price, which the Sellers will submit
to them on or before the first day of each month for their approval.
Upon the consideration aforesaid it is further mutually agreed between the parties
hereto as follows:
First. The prices contemplated by this contract for the materials hereinbefore men-
tioned shall be fixed each month, beginning October 1st, 1904, as to billets, and May
1st, 1904, as to other materials, and shall be determined as follows:
(a) Standard Bessemer iron: The price shall be based on actual sales made during
the next preceding month f. o. b. cars at Pittsburg, and shall be agreed upon within
one week after the end of each month; for example, on or about July 1st the Sellers
will subtnit to the Buyers the average price of standard Bessemer iron for the month
of June, which price shall always be based on actual sales as nearly as they can be deter-
mined, the Buyers to signify their acceptance of the price withm three (3) days after
it is submitted.
(6) Basic pig iron: The price shall be based on actual sales made dm'ing the next
preceding month f. o. b. cars at Pittsburg, and shall be agreed upon within one week
after the end of each month; for example, on or about July Ist, the Seller wUl submit
to the Buyers the average price of basic pig iron for the month of June, which price
shall always be based on actual sales as nearly as they can be determined, the Buyers
to signify their acceptance of the price within three (3) days after it is submitted.
3(c) Standard soft Bessemer and open-hearth billets: The price shall be determined
according to the above tables from the price of standard Bessemer pig iron to the
Buyers for the next preceding month.
(a) The price for low phosphorus pig iron to be determined by adding four dollars
($4.00) per gross ton to the price of standard Bessemer pig iron f. o. b. Pittsburg, as
provided in this agreement.
(e) The price for ferromanganese to be based on the market price, with a differential
of 7i per cent to the Buyers.
( /) In case parties hereto can not mutually agree upon the average price of Bessemer
and of basic pig iron, it shall be referred to Albert H. Childs, of Pittsburg, Pa., as
arbitrator.
It is also mutually agreed that any other differences arising under this contract shall
also be referred to Albert H. Childs, whose decision shall be final and binding on both
parties. In case of the inability of the said Albert H. Childs to act as arbitrator each
of the parties to this agreement shall select a person of experience in the iron and steel
trade, and in the event of their failure to agree the two persons thus selected shall
select a third person, whose decision shall be final and binding on both parties.
Second. Payment shall be made by the Buyers in cash on the fifteenth day of each
month for the preceding month's shipments.
Third. The Buyers shall give specifications under this contract at least twenty (20)
days before shipment is required, and also give an approximate estimate of the num-
ber of tons of the different materials covered by this contract required for the month
beginning sixty (60) days in advance. For example, on July 1st an approximate
estimate shall be given of the materials required for shipment during September; and
in giving specifications, which shall always be standard specifications for the Seller's
standard Bessemer pig iron, basic pig iron, soft Bessemer, and open-hearth steel
billets, low phosphorus pig iron, and 80 per cent ferromanganese, the Buyers will state
what deliveries are required for each month, and the materials shipped will be charged
for at the ruling price for the month in which delivery is specified; and in case of Seller's
inability to make delivery of the total tonnage of materials for delivery during any
one month the orders unfilled at the end of such month shall be delivered during the
succeeding montti at the prices ruling for the month in which such orders were placed.
Fourth. The total quantity of materials ordered for delivery in any one month
shall be —
Not less than 3,500 gross tons nor more than 7,000 gross tons of standard Bessemer
iron.
Not less than gross tons nor more than gross tons of basic pig iron.
4394
UNITED STATES STEEL COEPORATION.
Not less than 6,000 gross tons nor more than 12,000 gross tons of soft Bessemer and
open-hearth steel billets.
Not less than 1,000 gross tons nor more than 2,000 gross tons of low phosphorus
pig iron.
Not less than 50 gross tons nor more than 100 gross tons of 80 per cent ferromanganese.
The materials covered by this agreement shall be of Seller's standard manufacture.
The size of billets to be within the Seller's capacity. The 4" billets shall be called
for in cuts of not less than 100 pounds, and no billets of larger sizes in lengths of less
than twenty-four (24) inches. Billets under 4" to be furnished in mill lengths of
about thirty (30) feet.
Buyers have the privilege under this contract of taking not more than twenty-five
per cent (25 per cent) of the total tonnage of Bessemer steel billets, specified for deliv-
ery in any one month, of 0.28 carbon billets, at a price of one dollar ($1.00) per ton
over and above the price agreed upon for standard soft Bessemer steel billets, as here-
inbefore stipulated, and high carbon open-hearth billets, at the differentials in price
hereinbefore stipulated.
Fifth. It is understood and agreed that while Buyers may specify for Seller's stand-
ard soft Bessemer and soft open-hearth steel billets, at the price provided for such
materials in this agreement, for shafting purposes, the Seller's responsibility ends with
the acceptance of such billets by Buyers for rolling into such shafting material.
Sixth. Buyers are to have the privilege of obtaining from other sources such special
Bessemer steel as Sellers are unwiUing or unable to furnish.
Seventh. Strikes, differences with workmen, or other contingencies beyond the
control of the respective parties hereto, shall be sufficient cause to either party for
failure to make or accept deliveries imder this contract during the continuance of
such contingency; but upon its removal this contract shall be resumed without any
extension by reason of such suspension.
Eighth. It is made a condition of this contract that the Buyers shall not resell any
of the material furnished hereunder without first putting it through a process of manu-
facture at their works.
Ninth. In case of any changes in the business organization of either of the parties
hereto, this contract shall be assumed by the successors.
Executed and delivered at the city of New York, N. Y., this thirtieth day of April,
1904.
Accepted:
Chucible Steel Co. of America,
Wm. G. Park, Chairman Ex. Com.
Carnegie Steel Company,
W. E. Corey, Director.
H. P. BopE, Director.
An agreement made this 29th day oj April, 1904, by and between the Crucible Steel
Company of America, a corporation existing under the laws of the State of New Jersey
{hereinafter called the "Crucible Company"), party of the first part, and United States
Steel Corporation, a corporation existing urvder the laws of the State of New Jersey
(hereinafter called the "Steel Company"), party of the second part.
WTiereas the Crucilale Company owns or controls all of the capital stock of the Clairton
Steel Company, a corporation existing under the laws of the State of Pennsylvania,
consistiug of 35,000 shares of the par value of $100.00 each; and
Whereas the said Clairton Steel Company owns or controls the capital stock of certain
subsidiary companies, as follows, to wit:
1. Champion Iron Company. All of the capital stock issued and outstanding, being
19,950 shares of the aggregate par value of $498,750.
2. Fifty-one (51) per cent of the capital stock issued and outstanding of the St. Clair
Limestone Company, such 51 per cent being of the aggregate par value of $25,500.
3. All of the capital stock issued and outstanding of the St. Clair Terminal Raiboad
Company, of the aggregate par value of -SI, 000,000.
4. All of the capital stock issued and outstanding of the Clairton Land Company,
of the aggregate par value of $1,000.
5. All of the capital stock issued and outstanding of the Pittsburgh & Southwestern
Railway Company. And
UNITED STATES STEEL COEPOEATION. 4395
Whereas the Clairton Steel Company, either in its own right or through its ownership
of stock in the subsidiary Companies above named, owns or controls the following
properties, to wit:
Estimated ralne.
Real estate, 148.9 acres (cost) 1819, 007. 70
2,907 acres of coal lands in Fayette County (cost) 1, 365, 483. 63
19,950 shares Champion Iron Company stock (cost) $1, 655, 887. 66
Cash advanced to Champion Iron Company (cost) 97, 888.61
1, 753, 776. 27
One-half interest Clairton mine (cost) 265,842.82
Little & Prindle mine, bonus price $75, 000. 00
Little & Prindle mine, advance royalty 45, 937. 50
120, 937. 50
51 per cent of the capital stock of St. Clair Limestone Company (cost) 7, 397. 19
Ashtabula Dock investment 1, 000. 00
Plants : 6, 827, 885. 44
Gas mains 55, 143. 56
140 houses and 166 lots Clairton Land Company, on 13.32 acres (cost) . . 208, 639. 73
And whereas the Clairton Steel Company is the owner of the following additional
property, to wit:
Cash $61, 308. 10
Good and collectible notes receivable 90,000.00
Good and collectible accounts receivable 1, 175, 277. 72
'iventory on April 30, 1904, at prices as hereinafter provided 1, 292, 777. 75
And whereas the only Hens upon any of the properties above named are as follows:
(a) A bonded mortgage indebtedness of the St. Clair Steel Company of $2,250,000.00.
(6) A bonded mortgage indebtedness of the St. Clair Furnace Company of $3,000,-
000.00.
(c) A bonded mortgage indebtedness of the Clairton Steel Company of $5,000,000.00.
{d) Real estate mortgages aggregating $277,048.78.
(e) A bonded mortgage indebtedness upon the coal properties aggregating $1,164,-
666.56.
(/) The Clairton mine is subject to a bonded mortgage indebtedness of $450,000.00
made by W. P. Snyder and the St. Clair Furnace Company, of which, however, only
$225,000.00 is owing by the Clairton Steel Company upon the one-half interest in the
Clairton mine owned by the St. Clair Steel Company.
(g) Bonded mortgage indebtedness of St. Clair Terminal Railroad Company amount-
ing to $1,000,000.00. And
Whereas all the statements contained in the foregoing recitals are the statements
and representations of the Crucible Company made for the pmposes of inducing the
execution of this agreement by the Steel Company, and this agreement is made and
entered into by the Steel Company on the basis of and in reliance upon the truth of each
and every of said statements and representations; and
Whereas the Crucible Company desires to sell and the Steel Company is willing to
acquire, upon the terms herein provided and not otherwise, the ownership and control
of the capital stock and properties hereinbefore mentioned, free from liens except as
hereinbeifore stated.
Now, therefore, in consideration of the premises and of other good and valuable con-
siderations, it is hereby covenanted and agreed as follows:
First. On or before the 20th day of May, 1904, the Crucible Company will procure,
to be vested in the Steel Company or in such other persons or corporations as may be
designated by the chairman of the board of directors of the Steel Company (either
through the control of the capital stock of subsidiary corporations to be transferred as
hereinafter provided, or otherwise), the following properties now owned or controlled
bv the Clairton Steel Company, namely:
Estimated value.
Real estate, 148.9 acres * $819, 007. 70
2,907 acres of coal lands in Fayette County 1, 365, 483. 63
19 950 shares Champion Iron Company stock $1, 655, 887. 66
Cash advanced to Champion Iron Company 97, 888. 61
1,753,776.27
One-half interest Clairton mine 265, 842. 82
Little & Prindle mine, bonus price $75, 000. 00
Little & Prindle mine, advance royalty .- 45, 937. 50
120, 937. 50
4396 UNITED STATES STEEL COKPORATIOK.
Estimated valuet
51 per cent of the capital stock of St. Clair Limestone Company $7, 937. 19
Ashtabula Dock investment 1, 000. 00
Plants 6, 827, 885. 44
Gas mains 55, 143. 56
140 houses and 166 lots Clairton Land Company on 13.32 acres 208, 639. 73
Cash 61,308.10
Good and collectible notes receivable 90, 000. 00
Good and collectible accounts receivable 1, 175, 277. 72
Inventory on April 30, 1904, at prices as hereinafter provided 1, 292, 777. 75
14, 044, 477. 41
1. All the capital stock issued and outstanding of the Clairton Steel Company, con-
sisting of 35,000 shares of the aggregate par value of $3,500,000.
2. 10,000 shares of the capital stock of the St. Clair Terminal Railroad Company, of
the aggregate par value of $1,000,000.
3. 10 shares of the capital stock of the Clairton Land Company, of the aggregate par
value of $1,000.
4. 255 shares of the capital stock of the St. Clair Limestone Company, of the aggre-
gate par value of $25,500.
5. 200 shares of the capital stock of Pittsburgh & Southwestern Railway Company,
of the aggregate par value of $20,000.
6. 50 shares of the capital stock of Monongahela Construction Company, of the aggre-
gate par value of $5,000.
7. 19,950 shares of the capital stock of Champion Iron Company, of the aggregate
par value of $498,750.
Second. The Crucible Company will pay and discharge all debts and liabilities of
every name and nature which shall have been incurred prior to May 1, 1904, by or
on behalf of the Clairton Steel Company, and any and all claims and demands against
said company existing or arising on or before May 1, 1904 (but not including indebted-
ness for materials and supplies shipped and in transit but not received by Clairton
Steel Company on date named), excepting only the principal sums due upon the bonds
or mortgages hereinbefore specifically mentioned; and will also pay to the Steel Com-
pany, or as directed by it, the interest upon all of such bonds or mortgages up to and
including May 1, 1904, although the same shall not yet have become due and payable,
and also the proportionate part of all taxes for the current year payable by said Clairton
Steel Company, to be adjusted as of May 1, 1904, so that the said Clairton Steel Com-
pany shall on May 2, 1904, be free and clear of and from all indebtedness of every name
and nature except the principal sums of said bonds and mortgages. No part of the
assets of the Clairton Steel Company shall be used for the payment or satisfaction of
any of the said debts, liabilities, claims, or demands, or accrued interest, or taxes, and
all existing assets of the Clairton Steel Company on April 30, 1904, are to remain in the
treasury of said company without diminution.
Crucible Company guarantees that on April 30, 1904, the good and collectible quick
assets of the companies hereinbefore named, any part of whose capital stock is owned
b^ the Clairton Steel Company (excluding moneys due from Clairton Steel Company
and from such other companies any part of whose capital stock is owned by Clairton
Steel Company, and excluding the iron ore on hand at the Champion mime) will in
the aggregate equa,l at least the aggregate amount of current lialDilities of such com-
panies (excluding indebtedness owing by them to the Clairton Steel Company and to
such other companies any part of whose capital stock is owned by Clairton Steel Com-
pany) ; and in case of any deficiency Crucible Company will on demand make good
such deficiency. But the assets and liabilities comprehended by this paragraph shall
include only 51per cent of the assets and liabilities of the St. Clair Limestone Company.
Third. The Crucible Company covenants and agrees and guarantees:
1. That the real estate of the Clairton Steel Company, including the coal land,
hereinbefore described, and the real estate of the Clairton Land Company, are owned
by the respective companies in fee gimple absolute, and that the title thereto is per-
fectly good and marketable and that the Crucible Company will forever warrant and
defend the said titles and each of them, and that the real estate of the remaining
subsidiary companies are held by good, absolute, and legal title for the interest pur-
porting to be owned by such company, and that the Crucible Company will forever
warrant and defend the same as to such interest.
2. That on April 30th, 1904, the aggregate amount of the current and working assets
of the Clairton Steel Company, consisting of cash, notes receivable, accounts receiv-
able (exclusive of accounts due Clairtoh Steel Company from companies any part of
whose capital stacks is owned by Clairton Steel Company, but including 49 per cent
of accounts due from St. Clair Limestone Company) and inventories, to be verified
UNITED STATES STEEL COEPOEATION. 4397
by the Steel Company by an examination of the cash, notes receivable, and accounts
receivable, and by a physical inventory to be taken as of April 30th, 1904, at values
for materials involved as hereinafter in this section provided, wiU equal at least the
sum of $2,619,000, and that the amounts included in said aggregate of $2,619,000 and
represented by notes receivable and accounts receivable shall be fully realized in
cash, and the deficiency, if any, shall upon demand be made good by the Crucible
Conipany. It is understood and agreed by the parties hereto that in determining
the inventory valuation as before referred to in this section the values of aU materials,
supplies, and products (except ores) shall be the mill cost price thereof to the Clair-
ton Steel Company, except that where such prices are higher than market prices, in
which cases the latter shall be used; aU prices, other than the market prices of iron ore
hereinafter referred to, to be agreed upon by a representative of the Crucible Com-
pany and a representative of the Steel Company, and in case such representatives
are unable to agree, the questions at issue shall be referred to Willis L. King, as arbi-
trator, and his decision shaU be final and binding upon all parties. For the purposes
of this inventory the market prices of iron ores on hand (other than siliceous ores)
shall be taken at prices relative, as shown by their analyses, to the prices named below
for base ores, delivered at Lake Erie ports, of the base analyses for season of 1904,
as established by the Bessemer Ore Association for the several kinds of base ores,
to wit: Old Range Bessemer, $3.50 per gross ton; Mesaba Bessemer, $3.25 per gross
ton; Old Range non-Bessemer, $2.85 per ^oss ton; Mesaba non-Bessemer, $2.65 per
gross ton; and the inventory prices of siliceous ores, delivered at Lake Erie ports,
shall be as follows: Kanawha, $2.20 per gross ton; Quinnesec, $1.75 per gross ton;
Basic, $2.64 per gross ton; but in no event shall the total amount allowed for all iron
ores exceed the total aggregate cost to Clairton Steel Company of all said ores.
Fourth. The Crucible Company covenants and agrees that each and every of the
covenants and agreements contained in the foregoing paragraphs marked first, second,
and third shall be performed in such maimer as shall be satisfactory to the finance
committee of the Steel Company.
Fifth. All payments to be made by the Crucible Company as hereinbefore pro-
vided will be made by the Crucible Company on or before May 20, 1904, so far as
practicable, and all liabilities which shall not then have been paid or satisfied shall,
as they develop or accrue or become payable, be paid by the Crucible Company imme-
diately upon the request of the Clairton Steel Company or of the Steel Company,
and, when paid, the vouchers or receipts therefor shall be filed with the Clairton Steel
Company. But nothing herein contained shall be construed to prevent the Crucible
Company from contestii^ the payment of any account or claim said Crucible Company
shall consider not to b6 justly due and payable; provided, that in the event that such
claim shall be contested, the Crucible Company shall, upon request of the Clairton
Steel Company or from the Steel Company, give to the Clairton Steel Company sat-
isfactory security for the payment of said debt or claim; and provided further, that
the Crucible Company shall bear all the expenses of any such contest.
Sixth. On or before May 20, 1904, the Crucible Company will procure the cancella-
tion of any and all promissory notes, bills of exchange, or other negotiable paper upon
which the name of^Clairton Steel Company appears either a maker or acceptor or as
endorser, guarantor, or surety, except such negotiable paper as shall have been
received by the Clairton Steel Company in the usual course of business from persons
or corporations other than the Crucible Company.
Seventh. On or before the twentieth day of May, 1904, the Crucible Company will
procure the discharge of the receiver or receivers of the Clairton Steel Company, and
the dismissal of all legal proceedings pertaining thereto, and will pay or in a maimer
satisfactory to the finance committee of the Steel Company wiU provide for the pay-
ment of all debts and obligations accrued or which may hereafter accrue of the receiver
or receivers of said Clairton Steel Company, and of all debts, liabilities, and claims of
every name and nature arising out of said receivership.
Eidith. The Crucible Company covenants and agrees and guarantees that neither
the ^airton Steel Company nor any company of which a part of the capital stock is
owned or controlled by the Clairton Steel Company is a party to or is obligated upon
any contract for the purchase of materials or supplies or for construction, improve-
ment, or maintenance, or for the services of officers, employees, or agents, or for the
sale of merchandise or materials or otherwise, except the contracts specified in Sched-
ule A hereto annexed; and that the amounts which will become due and wiU be
payable or will be deliverable under each of said contracts subsequent to May 2,
1904, is approximately correct and is correctly stated in said schedule as nearly as the
same can now be ascertained. If in any case the same is not stated substantially
correct, the Crucible Company will make good the same and protect the Clairton
Steel Company and the Steel Company from loss thereon. The Crucible Company
31572— >'o. 53, pt. 3—12 6
4398 UNITED STATES STEEL COBPOKATION.
further agrees that any obligations which may accrue and become payable after May
2, 1904, on purchase or service contracts of Clairton Steel Company or by any com-
pany any part of whose capital stock is owned by Clairton Steel Company which are
not specified in said Schedule A hereinbefore referred to, will be assumed and paid
upon demand by the said Crucible Company; also that the said Crucible Company
will make good to Clairton Steel Company or any company any part of whose capital
stock is owned by Clairton Steel Company any loss any of said companies may suffer
in the sale of materials or merchandise which they may be obligated to deliver after
May 2, 1904, under any sales contracts entered into by said companies prior to May
20, 1904, which may not be specified in said Schedule A hereinbefore referred to.
Ninth. Upon and. at the time of the transfer of the stock of the Clairton Steel Com-
pany and of the other companies as herein provided the Crucible Company will pro-
cure and deliver to the Steel Company resignations in form satisfactory to the Steel
Company of all of the directors and officers of each of said companies.
Tenth. Within thirty days after the execution of this agreement the Crucible Com-
pany will execute or cause to be executed to such person or corporation as may be
designated by the chairman of 1iie board of directors of the Steel Company a valid
option to purchase at any time within five years from date at cost, with interest to
date of transfer, at not exceeding rate of 5 per cent per annum, any or all of the land
and real estate or any right or interest therein or appurtenant thereto situated in or
about the town of Clairton, in the State of Pennsylvania, which is now, directly or
indirectly, owned or controlled by the Crucible Company.
Eleventh. The Crucible Company will pay and discharge all of the debts, charges,
and expenses (including counsel fees and other legal expenses) which have been dr
shall be incurred by either party in or about the preparation or carrying out of this
agreement.
Twelfth. Upon (1) the delivery by the Crucible Company to the Steel Company
of the property and shares of stock herein agreed to be conveyed and transferred,
(2) the payment in cash of the deficiency, if any, in the current and working assets
of the Clairton Steel Company as guaranteed in this agreement as ascertained Dy the
examination and inventory to be made by the Steel Company as herein provided,
(3) the release by the Crucible Company of the indebtedness owing by the Clairton
Steel Company to the Crucible Company, (4) the cancellation of the obligations
required by article sixth hereof, and (5) the reduction of the indebtedness of the
Clairton Steel Company to be paid by the Crucible Company as herein provided to
an amount not exceeding $750,000 the Steel Company will —
1. Execute or cause to be executed the guarantee of the United States Steel Cor-
poration of the prompt payment of the principal and interest of the following issues
of bonds as the same shall become or be made due and payable, according to the terms
of such bonds and the mortgages given to secure the same, to wit:
(a) Bonds of the St. Ckir Steel Company to the aggregate principal amount of
$2,250^)00, with interest from May 1, 1904.
(i) Bonds of the St. Clair Furnace Company to the aggregate principal amount of
13,000,000, with interest from May 1, 1904.
(c) Bonds of the Claiiton Steel Company to the aggregate principal amount of
$5,000,000, with interest from May 1, 1904.
(d) Such guaranty to be deposited with the trustees of the respective mortgages and
to be in such form as shall be agreed upon between Messrs. Reed, Smith, Shaw &
Beal and the general solicitor of the Steel Company.
2. Deliver imto the Union Trust Company at Pittsburgh, in trust, 11,000,000 par
value of the ten-sixty-year five per cent sinking fund gold coupon bonds, ex May 1,
1904, coupon, of the United States Steel Corporation, which are issued under an
indenture to the United States Trust Company of New York, dated April 1, 1903, to
be held and disposed of by said trust company as follows:
From time to time thereafter as the Crucible Company shall pay and discharge the
balance of the indebtedness of the Clairton Steel Company, which, under the terms
of this agreement, it is required to pay and discharge, it shall be entitled to receive
from the trust company bonds which at seventy-five per cent of their par value shall
equal the amount of the indebtedness so paid; and the bonds shall be deUvered to the
Crucible Company by the trust company on the request in writing of the Crucible
Company, approved by the comptroller of the Steel Company and by the treasurer
of the Clairton Steel Company; provided, however, that there shall always be retained
by the trust company an amount of bonds which at seventy-five per cent of their par
value shall equal the known unpaid indebtedness of the Clairton Steel Company pay-
able by Crucible Company under the terms of this agreement, and also that the
last $50,000 par value of said bonds may be retained by the trust company untilJan-
uary 1, 1905, and the comptroller of the Steel Company and the treasurer of the Clairton
Steel Company shall be under no obligations to approve the earlier deUvery of such
$50,000 of bonds.
UNITED STATES STEEL CORPORATION. 4399
3. The time of payment of the principal of the $150,000 bonde of the St. Glair Steel
Company, due Janiiary 1, 1904, and which sie now held by the Crucible Company,
shall be extended by proper endorsement on said bonds to January 1, 1905, with
interest from May 1, 1904.
Thirteenth. The Steel Company covenants and agrees that it will at all times hold
harmless the Crucible Company from any obligation heretofore assumed by the Cruci-
ble Company for the payment of the principal and interest of the bonds and mortgages
hereinbefore recited.
Fourteenth. There are in existence five certain contracts between W. P. Snyder
& Company and the Clairton Steel Company (copies of which have been dehvered
herewith) for the supplying of ore to the Clairton furnaces, which contracts are based
uj)on five contracts held by W. P. Snyder & Company for receiving such ore from the
mines (copies of which hava been delivered herewith). There are also on docks about
one hundred and fifteen thousand tons of ore which, under the s^id contracts, Snyder
& Company claim the Clairton Steel Company should receive and pay for. The Clair-
ton Steel Company has heretofore cWmed thiat it has the right to cancel the said con-
tracts between it and Snyder & Company. An arrangement has been made, which
is embodied in a latter, a copy of which is attached hereto, whereby Snyder &
Company have agreed thkt the Clairton Steel Company shall be entitled to receive
the ore which Snyder & Company are entitled to receive under their contracts, paying
therefor the price to be paid by said Snyder & Company for such ore, plus the sum
of ten cents per ton, excepting as to the contract for basic ore, which ore is to be
received by the Clairton Steel Company at the price to be paid therefor by Snyder
and Company; and it is a part of said arrangement that the Clairton Steel Company
shall take one-half of the quantity of each kind of said ore now on docks, above men-
tioned, paying for such ore the prices fixed in the contiacts between said Snyder &
Company and the Clairton Steel Company, with interest on the overdue payments.
The Steel Company covenants and agrees to carry out this arrangement, and to take
and pay for said one-half of the ore on docks, except that one-hplf the difference
between the market price of said ore on docks, ascertained in the manner provided
in section 2 of paragraph third, and the price so £^eed to be paid said Snyder & Com-
pany for such ore shall be repaid to the Steel Company by the Crucible Company
upon demand.
Fifteenth. It is expressly understood and agreed that if any breach of any of the
covenants in this agreement contained on the part of either party be alleged by the
other or if any difference shall arise at any time between the parties hereto in relation
to the construction of this agreement or the due performance of any of the covenants
thereof the question shall be submitted to arbitrators. In such case, the party ag-
grieved or moving in the matter shall give to the other party written notice of its
desire to have an arbitration in which it shall state generally its grievance, and name
an arbitrator. The other paity shall thereupon name an arbitrator within ten days
after receipt of such notice and in case of its failure to do so, the moving party may
appoint the second arbitrator. The two thus appointed (in either manner) shall select
a tiiird, and in case of their failure to do so within ten days after the appointment of
the second arbitrator, the third arbitrator shall be appointed by the United States
district judge for the eastern district of Pennsylvania upon the application of either of
the parties hereto or their assigns and the board of arbitrators thus constituted shall
thereupon proceed to determine the matter in dispute, and the decision of any two
(including the disposition of the costs of arbitration) shall be final and conclusive
upon "both parties as to all questions of fact involved in such arbitration.
Sixteenth. All of- the covenants, guaranties, and agreements herein contained shall
bind and shall be for the benefit of the parties hereto and their respective successors
and assigns.
In witness whereof these presents have been duly executed by the parties hereto
respectively the day and year first above written.
Crucible Steel Company of America,
By , President.
Attest:
— , Secretary.
Attest:
, Secretary.
United States Steel Corporation,
By , President.
DOCUMENT UU.
Statement showing production cost to subsidiary manufacturing companies of United
States Steel Corporation for the years 1909 and 1910.
(Tlic item of labor does not include all of the payments for services of employees engaged in the production
of thia product. More or less labor is included in practically every one of the several cost items. Under
the accounting methods followed by the subsidiary companies the latter's expenditures and charges for
general administrative expenses and taxes and for depreciation do not form an integral part of their cost-
accounting system. Such expenditures and charges are made in bulk direct to the general profit and loss
accounts. To allocate fairly and equitably such expenditures and charges to the respective classes o f
products, semifinished and finished, which may have been produced presents a very intricate and difll-
cult problem, and involves an enormous task. Since the distribution to product accounts of the charges
above named does not form a part of the regular system, and because it has been impossible to under-
take such work, owing to lack of time, the cost statement as above does not show any charges for the item s
in question.]
BESSEMER PIO IRON— ALL NORTHERN FURNACES,
[Tons produced, 12,724,805.)
Cost items.
Iron ore
Scale and cinder
Scrap
Coke
Limestone
Labor
Steam and power
Uaterlal In repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Rellnlng and renewals
Less credit for surplus gas produced
Mill cost only
Cost per
gross Ion
of iron.
S8.349
.086
.056
3.816
.420
.638
.066
.087
.128
.217
.190
.m
13. 78 6
BASIC PIO IRON— ALL NORTHERN FURNACES.
[Tons produced, 8,920,426.]
Cost items.
Iron ore
Scale and cinder
Scrap
Coke
Limestone
Labor
Steam and power
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Relining and renewals
Less credit for surplus gas produced
Mill cost only
Cost per
gross ton
of iron.
»7.778
.111 ■
.061
3.739
.484
.647
.072
.094
.131
.201
.190
.m
13.215
4400
UNITED STATES STEEL COBPOBATION,
4401
Statement showing production cost to subsidiary manufacturing companies of United
States Steel Corporation for the years 1909 and 1910 — Continued.
BESSEMER STEEL INGOTS— ALL NORTHERN STEEL WORKS.
[Tons poduced, 11,641,076.]
Coat items.
Cost per
gross ton of
Bessemer
steel ingots.
Pig iron and scrap
Waste
Cost of iron and scrap in ingots
Manganese
Labor
Fuel and fluxes for melting, etc
Steam and power
Molds
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Hill cost only
113.774
1.216
14.990
.385
.474
.138
.142
.087
.060
.103
.125
16. 504
OPEN-HEARTH STEEL INGOTS— ALL NORTHERN STEELWORKS.
[Tons produced, 14,828,439.]
Cost items.
Cost per
gross ton of
open-hearth
steel ingots.
Fig iron and scrap (Including iron from ore, scale, and cinder)
Waste
Cost of pig iron and scrap in ingots
Manganese
Labor
Fuel and fluxes for melting, etc
Steam and power
Molds
Material in repairs and maintenance
Furnace and mixer repairs and rebuilding
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
113. 402
1.029
14.431
.351
.063
.718
.045
.089
.082
.314
.291
.148
17. 132
STANDARD BESSEMER RAILS— ALL NORTHERN MILLS.
(Tons produced, 1,909,162.]
Cost items.
Cost per
gross ton of
standard
Bessemer
rails.
Bessemer rail steel Ingots
Waste
Cost of ingots in rails
Labor
Heating
Steam and power
Rolls
Materials in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
$16,524
1.000
17.624
1.184
.149
.386
.125
.174
.121
.253
19. 916
4402
UNITED STATES STEEL COEPOEATION.
Statement showing production cost to subsidiary manufacturing companies of United
States Steel Corporation for the years 1909 and 1910 — Continued.
STANDARD O PEN-HE AETH RAILS— ALL NORTHERN MILLS.
[Tons produced, 863,905.]
Cost, items.
Cost per
gross ton of
SLandard
open-hearth
rails.
Open-hearth steel ingots
waste
Cost of ingots in rails
Labor
Heating
Steam and power
Rolls
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
$17, 179
1.304
18.483
1.134
.271
.317
.089
.208
.137
.192
20. 831
BESSEMER AND OPEN-HEARTH STEEL BLOOMS AND LARGE BILLETS— ALL
NORTHERN MILLS.
[Tons produced, 9,474,736.]
Cost items.
Cost per
gross ton of
steel blooms
and large
billets.
Steel ingots
Waste
Cost of ingots in blooms and large billets.
Labor
Heating
Steam and power
Rolls
Material in repairs and maintenance
Supplies and tolls
Miscellaneous and general works expenses
Mill cost only
sie.eei
.824
17.785
.463
.123
.298
.031
.134
.060
.129
19.023
SHEET AND TIN PLATE BARS— ALL NORTHERN MILLS.
[Tons produced, 2,664,981.]
Cost items.
Cost per
gross ton
of sheet
and tin-
plate bars.
Steel ingots
Waste
Cost of ingots in bEirs
Labor
Heating
Steam and power
Rolls
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
$17,259
.794
IS. 0.53
.535
.081
.664
.055
.153
.109
.179
19.729
UNITED STATES STEEL COEPORATION.
4403
Statement showing production cost to subsidiary manufacturing companies of United
States Steel Corporation for the years 1909 and 1910 — Oontinued.
HEAVY STRUCTURAL SHAPES— ALL NORTHERN MILLS.
[Tons produced, 1,941,315.]
Cost items.
Cost per
gross ton
of lieavy
structural
Steel Ingots
Waste ;
Cost of ingots in structural shapes. .
Labor
Heating
Steam and power
Rolls :
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
S17. 327
1.875
19.202
2.129
.347
.817
.363
.402
.244
.420
23.924
UNIVERSAL PLATES— ALL NORTHERN MILLS.
[Tons produced, 967,205.)
Cost items.
Cost per
gross ton
of
universal
plates.
Steel ingots
Waste
Cost of ingots in plates
Labor
Heating
Steam and power
Rolls
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
$17,000
1.908
18.908
1.767
.383
.747
.150
.371
.214
.431
22. 971
SHEARED PLATES— ALL NORTHERN MILLS.
[Tons produced, 1,144,305.]
Cost items.
Steel ingots
Waste
Cost of ingots in plates
Labor ^
Heating
Steam and power
Rolls .-•
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
Cost per
gross ton
of
sheared
plates.
S16.774
2.670
19.344
2.290
.364
.773
.221
.478
.192
.433
24.095
4404
UNITED STATES STEEJj COEPOEATION.
Statement showing production cost to subsidiary manufacturing companies of United
States Steel Corporation for the years 1909 and 1910 — Continued.
WIRE KODS— ALL NOETHEEN MILLS.
[Tons produced, 3,115,811.)
Cost items.
Steel billets
Waste
Cost of billets in rods
Labor
Heating
Steam and power
Rolls
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill co.'^t only
Cost per
gross ton
of wire
rods.
S20. 145
.851
20.996
1.391
.327
.864
.090
.208
.212
.227
24.315
Statement of production cost to Tennessee Coal, Iron & Railroad Co. for the years 1909
and 1910.
[The Item of labor does not Include all of the payments for services of employees engaged in the pro-
duction of this product. More or leas labor Is included in practically every one of the several cost items.
Under the accounting methods followed by the subsidiary companies, the latter's expenditures and charges
for general administrative expenses and taxes, and for depreciation, do not form an integral part of the
cost-accounting system. Such expenditures and charges are made In bulk direct to the gener^ profit
and loss accounts. To allocate fairly and equitably such expenditures and charges to the respective classes
of products, semifinished and finished, which may have been produced, presents a very Intricate and
difficult problem and involves an enormous task. Since the distribution to product accounts of the
charges below named does not form a part of the regular system, and because it has been impossible to
undertake such work, owing to lack of time, the cost statement as below does not show any charges for
the items in question.]
BASIC PIG IRON— ALL ITS BLAST FURNACES.
[Tons produced, 908,975.)
Cost Items.
Cost per
gross ton
of iron.
Iron ore
Scale and cinders
Scrap
Coke
Limestone
Labor
Steam and power
Material in repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses,
Rclinlng and renewals
Less credit for surplus gas produced
Mill cost only
$2,811
.006
.072
3.671
.225
.768
.174
.204
.185
.430
.200
.lis
UNITED STATES STEEL COBPOBATION.
4405
Statement of production cost to Tennessee Coal, Iron & Railroad Co. for the years 1909
and 1910 — Continued.
OPEN-HEARTH INGOTS— ENSLEY WOEKS.
[Tona produced, 838,469.]
Cost items.
Open-
hearth steel
ingots.
Pig iron and scrap (includes iron from ore, scale, and cinder)
Waste
Cost of pig iron and scrap in ingots
Manganese
Labor
Fuel and fluxes for melting, etc
Steam and power
Molds
Material in repairs and maintenance
Furnace and mixer repairs and rebuilding
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
$8. 500
.934
9.434
.020
.786
.874
.153
.289
.151
.484
.436
.307
STANDARD OPEN-HEARTH RAILS— ENSLEY, WORKS.
[Tons produced, 536,346.]
Cost items.
Standard
open-hearth
rails.
Open-hearth steel ingots
Waste
Cost of ingots in rails
Labor 1
Heating
Steam and power
Bolls
Material In repairs and maintenance
Supplies and tools
Miscellaneous and general works expenses
Mill cost only
J13. 562
1.523
15.085
1.765
.181
.816
.451
.418
.215
.575
19. 506
Highest and lowest mill cost of producing Bessemer and basic pig iron at individual plants
of subsidiary companies of the United States Steel Corporation for years 1909 and
1910.
Bessemer iron:
Highest cost plant ' $17. 555
Next highest cost plant 16. 909
Lowest cost plant 12. 748
Basic iron:
Highest cost plant 15. 704
Lowest cost plant 11. 635
Open-hearth steel ingots:
Highest (acid) (A) $26. 139
Highest (basic) first three months $22.8101 ,-r,^ „„ ,„,
Highest (basic) last nine months 22.223/ ^'^i ^^-^^^
These sheets will be found in two sections: (a) Comprising first three months, and
(6) comprising last nine months. On the cost sheets the cost items are not consolidated,
but in the above summary the costs are combined for the year (1910).
Lowest (C) $15,469
Bessemer steel ingots:
Highest (A) $20,405
Lowest (B) 14.878
I This was for a small single-stack fnmace plant and only a very sm&ll tonnage was produced. It is not
representative and therefore the next highest plant cost is given, which is for a fairly representative plant.
DOCUMENT ZZ.
Copt of Cablegram to E. H. Gart, New York.
Aix Les Bains.
Have received your cable of yesterday. My own views are in accordance with
those of the finance committee in New York. Certainly until question of wages has
been settled by the coal and railroads, which still in abeyance but settlement seems
imminent. Whole question wages should be settled simultaneously by all interests
if possible. Going Paris Wednesday. Will see then H. C. F., P. A. B. W. and will
cable you result of interview. If possible and meets your approval, think better wait
until after interview. Perfectly delightful here. Weather superb.
Copy of Cable to Mr. J. P. Morgan.
April 27, 1909.
Usual dividends declared. Earnings for quarter $22,921,000, against $18,229,000
last year. Set aside for depreciation $3,463,000, against $1, 771,000 last year. Surplus
carried forward for quarter $3,026,000, against $7,000 last year. Bookings for April
to date about 28,000 tons daily, against 14,000 April last year. Consideration wage
?uestion again postponed by finance committee . Opinion of members here unchanged,
think our attitude has been favorably commented upon by newspapers and public
men generally. We are watching situation closely and in detail. If business condi-
tions change for the worse we can consider all questions from that standpoint. If you,
Frick, and Widener were here, familiar with conditions, we think you would all
agree with us.
Gary.
4406
TINITED STATES STEEL CORPORATION AND SUBSIDIARY COMPANIES,
THEIR CAPITALIZATION AND BONDED AND CAPITAL DEBT, JULY 1,
1911,
[This schedule is furnished in response to a request made to Judge Gary for infor-
mation on the lines covered by the schedule, as see pages 70 and 122 of his testimony,
also in response to a request for information on the same lines made direct by Mr.
MacRae to the corporation (Mr. MaoRae's request U).
The information contained in this schedule covers a wider scope than was requested
either from Judge Gary or by Mr. MacRae. But, instead of making two schedules that
would cover in part the same ground, it was thought it would be better for the com-
mittee to have one comprehensive schedule that would answer all requests.]
United States Steel Corporation (New Jersey).
Capital stock:
Outstanding.
Common $508, 302, 500
Preferred 360,281,100
Bonded indebtedness:
50-year 5 per cent gold bonds —
Issued $303,957,000
Less, in sinking fund 32, 627, 000
271,330,000
10-60-year 5 per cent gold bonds —
Issued 200, 000, 000
Less, in sinking fund 10, 398, 500
189,601,500
The companies whose stocks are owned by United States Steel Corporation, together
with the capital stocks of those companies and their capital indebtedness, are as
follows:
Capital stocks.i
Total issued
and outstand-
ing.
Amount
not owned
by United
States Steel
Corpora-
tion.
Amount
owned by
United States
Steel Corpora-
tion.
Capital surplus
accounts.2
, Carnegie Steel Co
Federal Steel Co.:
Common
Preferred
American Steel & Wire Co.:
Common
Preferred
National Tube Co.:
Common
Preferred
American Sheet & Tin Plate Co.:
Common
Preferred
AmeriPan Bridge Co. : Common
Lake Superior Consolidated Iron limes
Shelby Steel Tube Co.:
Common
Preferred :
Union Steel Co
Clairton S teel Co -- - ■ ■
Tennessee Coal, Iron & R. R. Co.:
Common
Preferred ■ ■
Guaranteed preferred
S65, 250, 000. 00
484,300.00
260, 900. 00
000, 000. 00
000,000.00
000,000.00
000,000.00
500,000.00
500,000.00
000,000.00
887, 448. 97
151,600.00
000, 000. 00
000,000.00
500,000.00
529, 997. 50
124, 500. 00
178,000.00
JIO, 600. 00
1,000.00
400..00
400.00
.s:?, 202. 50
124, .500. 00
178,600.00
865,260,000.00
43,484,300.00
53,260,900.00
49,989,400.00
39,990,000.00
40,000,000.00
40,000,000.00
24,499,600.00
24,499,fi00.00
10,000,000.00
29,887,448.97
8,151,600.00
5,000,000.00
20,000,000.00
3,500,000.00
32,442,795.00
$189,000,000.00
46,325,000.00
52,324,600.00
1 See succeeding schedules for list of companies subsidiary to the companies whose stocks are owned by
United States Steel Corporation, their capitalization and capital liabilities.
2 Qod pvnianation on accompanying schedules.
The United States Steel Corporation also owns 5221,700 (par value) of stock of Pittsburgh Steamship Co.,
the balance of the stock being owned by Carnegie Steel Co.
4407
4408
UNITED STATES STEEL COBPOKATION.
Bonded and other capital liabilities.'
Total outstand-
ing exclusive of
bonds in sinking
funds.
Amount of same
owned by
United States
Steel Corporation.
Amount out-
standing in
bands of public.
Carnegie Steel Co
Federal Steel Co
American Steel & Wire Co
American Sbeet & Tin Plate Co
American Bridge Co
Lake Superior Consolidated Iron Mines
Union Steel- Co
Clairton Steel Co
Tennessee Coal, Iron & R. K. Co
$162,038,337.35
21,014; 100. 00
78,000.00
2,183,475.29
640,933.14
5,308,609.44
36,042,091.98
5,787,000.00
24,499,500.00
$161,727,337.35
21,014,100.00
2,183,475.29
640,933.14
5,308,609.44
504,091.98
$11,000.00
' '78," 666.' 66
10,365,000.00
35,538,000.00
5,787,000.00
14,134,500.00
1 See succeeding schedules for list of companies subsidiary to tbe companies wbose stacks are owned by
United States Steel Corporation, tlieir capitalization and capital liabillues.
MEMORANDUM.
The characters preceding each of the names of the respective companies listed on
the succeeding schedules indicate the following:
* Companies which were independent concerns prior to the time control or owner-
ship thereof passed to the parent company now controlling or owning same.
t Companies which were promoted and organized in the interest of their respective
parent companies, in the extension of the latter's business, prior to the date United
States Steel Corporation acquired control of the said parent companies.
I Companies which have been promoted and organized in the interest of their respec-
tive parent companies, in the extension of the latter'a business, since the time the
United States Steel Corporation acquired control of said parent companies.
Carnegie Steel Co. (New Jersey).
Capital stock (all owned by United States Steel Corporation) $65, 250, 000. 00
Bonded and mortgage debt ($159,989,000 owned by United States
Steel Corporation) 160, 300, 000. 00
Debenture (loan) notes (all owned by United States Steel Corpora-
tion) 1, 738, 337. 35
In addition to the amount of capital stock as above, the Carnegie Steel Co. has a
capital surplus account of $189,000,000, arising as follows: In 1903 a consolidation or
merger was made by the Carnegie Co., National Steel Co., and American Steel Hoop
Co. The aggregate amount of capital stock of these three companies before the
merger was $252,000,000. The stock of the merged or consolidated company was fixed
at 25 per cent of the total of the old companies' stocks, or $63,000,000, thus giving to
the consolidated company a capital surplus of $189,000,000.
The Carnegie Steel Co. controls the following companies through ownership of their
capital stocks, the total capital stock and capital liabilities of, said companies being
as stated below:
UNITED STATES STEEL CORPOKATIOlf.
4409
Total capital stock and capital
liabilities.
Per
cent
stock
owned
t>y
parent
com-
pany.
Capital
stock.
Bonded
mortgage
and other
capital debt.
Remarks.
tCamegie Stael Co. (Pa.).
fCamegie Natural Gas Co. .
•fUnlonR. R. Co
tSl^okwater Connecting Ry.
Co.
tEtna & Montrose R. R. Co. .
iSharon Connecting R. R. Co.
fPIttsburg & Conneaut Dock
Co.
fYoughlogheny Northern Ry.
Co.
f Mount Pleasant Water Co. . .
fTrotter Water Co
fUnlon Supply Co
tBessemer & Lake Erie R.
R. Co.
♦PittsljUTgh, Bessemer &
Lake Erie R. R. Co.:
Common
Prelerred
tCamegle Land Co
tConneaut Land Co
tConneaut & Eastern R. R.
Co.
•Pennsylvania & Lake Erie
Dock Co.
♦Columbus Stone Co
♦Mahoning Limestone Co
^Isabella Limestone Co
+Pittsburg Limestone Co.
(Ltd.).
tPeoples' Supply Co. (Ltd.)..
JBessemer Electric Power
Co.
tMingoCoalCo
tNatfonal Mining Co
*PewablcCo
•H. C. Frick Coke Co
tPlttsburgh Steamship Co..
tOllver Iron Mining Co..
100
100
100
100
100
100
100
100
100
100
100
100
55
38
100
100
100
62
100
51
87
75
75
100
100
$60,000,000
300,000
2,000,000
10,000
60,000
10,000
100,000
400,000
150,000
850,000
500,000
500,000
10,000,000
2,000,000
10,000
10,000
1,000
676,000
60,000
50,000
3,000
60,000
10,008
6,000
1,000
600,000
SO
74+
97+
100
200,000
20,000,000
7,880,000
1,200,000
$7,686,370.97
4,350,000.00
3,866.42
350,000.00
4,540,000.00
■15,096,000.00
446,174.99
13,618.75
389,675.57
2,423,386.08
12,704,000.00
3,067,758.47
$6,461,370.97 of this indebtedness
owned by United States Steel Cor-
poration.
See auxiliary list below for subsidiary
companies of Union R. R. Co.
$300,000 of these bonds owned by
United States Steel and 850,000 by
Prick Coke Co.
$436,674.99 of this indebtedness owned
by United States Steel Corporation.
American Steel & Wire Co. and Na-
tional Tube Co. also own stock of this
company, giving an ownership by
United Stales Steel interests of 77.9
per cent of total.
All this indebtedness owned by United
States Steel; balance (one-third of
stock) owned by American Sheet &
Tin Plate Co.
The remaining 26 per cent of Prick Coke
Co. stock is owned by other com-
panies controlled by United States
Steel Corporation, viz: National
Tube Co, 1 per cent; American Steel
& Wire Co., 11+ per cent; Illinois
Steel Co., 10+ per cent; Federal Steel
Co., 3-1^ per cent. Thus the entire
stock of Frick Coke Co. Is owned by
United States Steel Interests. In
addition to its outetandlng stock of
$20,000,000, the Frick Co. has a capi-
tal surplus of $4,871,231.30, arising
from merger of companies. See
auzlliary list below for subsidiary
companies of Frick Coke Co.
Of this Indebtedness United States
Steel owns $8,676,000. The balance of
Pittsburgh Steamship Co. stock is
owned by United States Steel Cor-
f oration,
this Indebtedness United States
Steel owns $2,367,758.47. See auxil-
iary list below of subsidiary com-
panies of Oliver Iron Mining Co.
4410
UNITED STATES STEEL COEPOEATION.
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital
stock.
Bonded
mortgage
and other
capital debt.
Remarlcs.
STJBSIDIAKY COMPANIES OF
FOREGOING.
Of Union Railroad Co.:
fMonongataela Southern
R. E. Co.
Of H. 0. Frlck Coke Co.:
tStandard Water Co
:fSewickley Water Co
=^Hostetter - Connellsville
Coke Co.
Of Oliver Iron Mining Co.;
*Lake Superior Iron Co . .
♦Regent Iron Co
♦Security Land & Explo-
ration Co.
JBradjJock Iron Mining
Co.
JHomestead Iron Mining
Co.
JDuquesne Iron Mining
Co.
{Allegheny Iron Mining
Co.
JHope Iron Mining Co . . .
JNeville Iron Mining Co..
jMonongahela Iron Min-
ing Co.
JLorain Iron Mining Co . .
4 Agawam Iron Mining Co.
JGreat Western Iron Min-
ing Co.
JAmbridge Iron Mining
Co.
JMorewood Iron Mining
Co.
JPencoyd Iron Mining Co.
JMunhall Iron Mining Co.
iMonessen Iron Mining
Co.
JSomerset Iron Mining
Co.
100
100
100
87
75
75
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
S160,000
10,000
50,000
1,500,000
2,100,000
450,000
100,000
30,700
30,000
22,100
22,700
36,200
50,000
5,700
50,000
17,400
6,000,000
50,000
50,000
48,300
50,000
50,000
50,000
$1,200,000.00
717,000.00
Federal Steel Co. (New Jersey).
Capital stock (entire amount owned by United States Steel Corporation) :
Common $46, 484, 300
Preferred 53, 260, 900
Capital loans (all due United States Steel Corporation) 21, 014, 100
UNITED STATES STEEL COEPORATION.
4411
The Federal Steel Co. controla the following companies through ownership of their
capital stocks, the total capital stock and capital liabilities of said companies as being
stated below:
Total capital stock
Uabilities
md capital
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and other
capital debt.
Remarks.
*Mii
*im
*Th
C
tTh
tTh
tJolL„
inesota Steel Co .
100
100
60
100
100
100
100
100
100
100
100
100
3*
100
100
100
100
100
85
61
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
$16,500,000.00
18,650,600.00
10,000,000.00
6,000,000.00
3,000,000.00
3,000,000.00
2,000,000.00
91,600.00
14,000.00
20,000,000.00
10,000.00
700,000.00
See Carnegie
10,000.00
1,000,000.00
1,000,000.00
50,000.00
65,000.00
20,000.00
80,000.00
1,000,000.00
500,000.00
500.00
400,000.00
500.00
57,000.00
50,000.00
27,000.00
8,000.00
100,000.00
45,450.00
9,000.00
50,000.00
32,000.00
60,000.00
See auxiliary list below for subsid-
aois Steel Co. .
$23,473,875.51
10,000,000.00
8,439,312.42
iary companies ol Minnesota Iron
Co.
816,541,170.32 of this indebtedness
in, Joliet & Eastern Ry.
0.
i National Tube Co. (of
hio):
nnTtiTTinn
owned by United States Steel
Corporation. See aiixiliary list
below for subsidiary companies of
Illinois Steel Co.
The remaining 40 per cent of this
company's stock is owned by the
C, L. S. & E. Ry. Co., a subsid-
iary of Illtnois Steel Co.
Of this total indebtedness $7,802,-
Preferred
292.06 is owned by United States
3 Lorain Steel Co
3 Lake Terminal R. R. Co.
400,000.00
1,000,000.00
Steel Corporation and $637,020.36
by Federal Steel Co.
$24,000 of this indebtedness owned
by United States Steel Corpora-
tion.
All this indebtedness owned by
Federal Steel Co.
Ry. Co.
tlnfflPsirlA final Cfi. fT.tH.l
:Ina
JGa
tCoi
IH.
::Bu
JUn
C
tMii
::Int)
;is
son
iana Steel Co
37,914,434.38
9,248,605.92
874,000.00
steel schedule.
930,093.54
Indebtedness all owned by United
ry Land Co
States Steel Corporation.
Indebtedness all owned by United
mellsville & Monongahela
Ij. Co.
C. FrickCokeCo
States Steel Corporation. See
auxiliary list below for subsidiary
companies of Gary Land Co.
$827,093.54 of this indebtedness
ited States Steel Products
0.
owned by United States Steel
Corporation.
1,096,317.46
833,051.72
765,217.14
21,027.61
iary companies of this company.
Indebtedness all owned by United
erstate Transfer Ry. Co. .
rit Lake Transfer Ry. Co.
jto Mining Co
States Steel Corporation.
Do.
Do.
Do.
SIDIARY COMPANIES OF
FOREGOINQ.
[innesota Iron Co.:
*Chapin Mining Co.
■Auburn Iron Co
Chippewa Iron Co
Delaware Iron Co
Norman Iron Co
4412
UNITED STATES STEEL CORPORATION.
Total capital stock and capital
habilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and other
capital debt.
Remarks.
SUB3IDIABT COMPANIES OF
FOEEOOiNO— continued.
Of Minnesota Iron Co.— Con.
fNorthem Development
Co.
tDuIuth & Iron Eange
R. R. Co.
Of Illinois Steel Co.:
100
100
100
100
10*
100
100
100
100
100
100
100
100
100
100
$100,000.00
3,000,000.00
1,000,000.00
2,000,000.00
See Carnegie
100,000.00
50,000.00
100,000.00
9,000,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
25,003.00
$11,232,000.00
$3,500,000 of this indebtedness is
owned by Minnesota Iron Co.
ment Co.
{United States Coal &
Coke Co.
H. C. Frick Coke Co
JUnited Supply Co
4,675,389.02
steel schedule.
Of this total indebtedness $4,366,-
769.66 is owned by the United
States Steel Corporation and
$308,619.36 by Illinois Steel Co.
tlllinois Steel Warehouse
Co.
fChicago, Lake Shore &
Eastern Ry. Co.
tJoliet& Blue Island Ry.
Co.
tChioago & Southeastern
Ey. Co.
f Chicago & Kenosha Ry.
Co.
fMilwaukee, Bay View &
9,000,000.00
Chicago Ry. Co.
Of Gary T,nnd Co.:
IQary Heat, Light & Wa-
terCo.
Of United States Steel Prod-
ucts Co.:
American Steel & Wire Co. (New Jersey).
Capital stock (all but 106 shares common and 10 shares preferred
owned by United States Steel Corporation) :
Common $50, 000, 000. 00
Preferred 40, 000, 000. 00
Bonded debt 78, 000. 00
UNITED STATES STEEL. OOBPOBATION.
4413
The subsidiary companies of the American Steel & Wire Co., their capital stocks
and capital liabilitios, are oh follows:
Total capital stock and capital
llabllltlos.
tAmorloan Blool & Wlro Co.
(ol Alabama).
tAmorloan Stool & Wlro Co.
(of Coluriiilo).
♦Trenton Iron (',o
tCanadlari Html & Wlro Co...
•Orlfwold Wlro Co
•Troy Stool I'rodmasCo
tAmorloan MImIhk Co
tAmorloon Land Co
•DKlgar Zlno I !o
tPIttsburgh 6t Ohio Valloy
Ry. Co*
, tNorthorn Liberties Tly. Cn . .
tNeWburK & South Shore
ny. Co.
tWaukogan <Si Mlsslsslnpl
VaUoyny. Co.
n. 0. Frlok Coke Co
JUnitod Cool ('o
♦ I'oiinsylvanla <!i Laico Erie
DookOo.
I 'or
cont
stock
owned
by
parent
com-
pany.
100
100
100
100
100
100
100
100
80
100
lOfl
100
100
It
26
18
Capital stock.
Bonded mort-
gage and
other capital
debt.
tl,80e,45e.(i3
1,100,000.00
1100,000.00
M, 000. 00
000,000.00
80,000.00
75,000.00
000,000.00
1,000,000,00
200,000.00
1,000,000.00
00,000.00
0,000.00
1,SOO,000.00
22,000.00
See Carnegie Stool Co.
•chedule. T.
See A. S. (Si P. Co. sched-
ule.
See Carnegie Steel Co.
aohedule.
Remarks.
This Indebtedness due to A. S. & W.
Co. of N. J.
This Indebtedness owned by A. S. &
W. Co. of N.J.
Lakh ScrBKiOB Consolidatbd Iron Mines (New Jersey).
Capital stock (all ownod by United States Steel Corporation) $29, 887, 448. 97
DoDonturo (loau) iioIdH (all owned by Ifiiited States Steel Corporation) 5, 308, 609. 44
The Biil)Hi(liiiry companies of tho Lako Superior Consolidated Iron Mines, their cap-
ital stciclcH and capilal liabilities, iiro as follows:
'I'dliU I'lipltal stook and capital
liabilities.
♦Duluth, MItisftbe & North-
ern Ry. C!o.
JProslo Water A l^lght
Co.
tAdams Mining Co
•Spruce MUilng Co
♦Mountain Trim Co
•Oroat NorUiwii Mining Co. .
•ShnwIronCo
•Rothbun Iron Mining Co —
tOreonvlllo Iron Mining ('o..
•Mlssabo & Northorn Town
Site Co.
Com bridge Iron Mining Co. .
Clarion Iron Mining
;Orowford Iron Mining I'o —
Cumborliind Iron Mining (lo.
Eaaox Iron Co
tReuohleau-Uiiv Mining
Co.«
Tubal Iron Mining Oo.».
Ownsoolron Co.»
Oneida Iron Co."
SonecFi Iron Co.'
Tor
cnnt
.si.iick
owned
by
parent
com-
pany.
100
100
100
100
100
00+
OO-H
100
100
100
100
, 100
100
100
100
100
100
100
100
100
Capital stook.
«'l,112,500.00
' 350, 000. 00
320,000.00
(10,000.00
1,003,000.00
3,500,000.00
2,070,000.00
100,000.00
60,000.00
0,900.00
50,000.00
60,0(X).00
60,000,00
50,000.00
1,303,307.48
06,000.00
50,000.00
50,000.00
50,000.00
50,000.00
Bonilod mort-
gage and
otnor onpllal
debt.
'»10,081,000
Remarks.
• Does not Inolmlo $3,120,000 of bonds In sinking fund.
> Authorlied amount.
8] 572— No. 58, pt. 8—12 7
• Subsidiaries of Essex Iron Co.
4414
UNITED STATES STEEL, OOBPORATION.
National Tube Co. (New Jersey).
Capital stock (entire amount owned by United States Steel Corporation) :
Common $40, 000, 000
Preferred 40, 000, 000
The National Tube Co. controls the following companies through ownership of their
capital stocks, the total capital stock and capital liabilities of said companies being as
stated below:
♦National Tube Works Co
tBenwood & Wheeling Con-
necting Hy. Co.
fMoKeesport Connecting Ry .
Co.
*H. C. FriokCokeCo
♦Pennsylvania & Lake Erie
Dock Co.
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and
er capital
debt.
$100,000.00
60,000.00
1,000,000.00
See Carnegie steel schedule.
See Carnegie steel schedule.
Remarks.
American Sheet & Tin Plate Co. (New Jersey).
Capital stock (all but 4 shares of each class of stock owned by United
States Steel Corporation):
Common $24, 500, 000. 00
Preferred 24, 500, 000. 00
Debenture (loan) notes (all owned by United States Steel Corporation) 2, 183, 475. 29
In addition to the amount of capital stock as above, the American Sheet & Tin Plate
Co. has a capital surplus account of $46,325,000, arising from the merger in 1904 of (he
American Tin Plate Co. and the American Sheet Steel Co. In that merger the stock
of the consolidated company remained the same as the stock of American Sheet
Steel Co. previously was, thus resulting in the company having a capital surplus
equal to the stock of the American Tin Plate Co. in lieu of which no new stock was
issued.
The subsidiary companies of American Sheet & Tin Plate Co., their capital stocks
and cnpital liabilities, are as follows:
•
Tota
capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pan.v.
100
100
100
100
100
76
33§
40i
Capital stock.
Bonded mori-
eageand
other capital
debt.
Remarks.
•W. Dewees Wood Co
Versailles Fuel Oas Co.' .
$1,500,000.00
100,000.00
12,000.00
50,000.00
100,000.00
60,000.00
$2,000,000.00
McKeesport Terminal
E. R. Co.i
tEIwood, Anderson & Lapel
E. R. Co.
fApollo Gas Co
Balance oJ stock owned by American
Steel & Wire Co.
See Carnegie Steel Co. schedule (or
particulars of stock, etc.
JUnited Coal Co
■fNBtinnnl MiniTif Cn
•Sharon Tin Plate Co
particulars of stock, etc.
' Subsidiaries of W. Dewees Wood Co.
UNITED STATES STEEL COBPORATION.
Ambhican Beedqb Co. (New Jersey).
4415
Capital stock (all owned by United States Steel Corporation) $10,000,000. 00
Mortgages and debenture (loan) notes ($640,481.14 owned by United
States Steel Corporation), 640, 933. 14
In addition to the amount of capital stock as above, the American Bridge Co. has a
capital surplus account of $52,324,600, arising from reducii^ the par value of its capital
stock from $62,324,600 to the nominal amount of $10,000^000.
The subsidiary companies of American Bridge Co,, their capital stocks and capital
liabilities, are as follows:
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and
other capital
debt.
Remarks.
JAmerican Bridge Co. (ol
100
100
100
100
JIOO.OOO.OO
3,000,000.00
2,500.00
5,000.00
New York).
tEmpIre Bridge Co
: American Improvement Co. .
Pencoyd & Philadelphia
E. R. Co.
Union Steel Co. (Pennsylvania).
Capital stock (all owned by United States Steel Corporation) $20, 000, 000. 00
Bonded and mortgage debt (does not include $8,295,000 of bonds in
sinking fund) 35, 538, 000. 00
Capital loans (all owned by United States Steel Corporation) 504, 091. 98
The subsidiary companies of the Union Steel Co., their capital stocks and capital
liabilities, are as follows:
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
100
100
100
100
100
100
100
100
69}
100
665
Capital stock.
Bonded mort-
gage and
other capital
debt.
S2, 144, 009. 78
1,364,634.32
Remarks.
tSharon Coke Co
»2, 510, 000. 00
12,600,000.00
6,000,000.00
6,000,000.00
. 276,000.00
40,000.00
300,000.00
6,000.00
800,000.00
49,000.00
300,000.00
Of this indebtedness, $1,681,922.86 is
tRepublic-Conncllsville Coke
tSharon Ore Co
due to Union Steel Co. and
1229,088.93 to United States Steel
Corporation.
Of this indebtedness, 1960,000 is due
to Union Steel Co. and the balance
to United States Steel Corporation.
Mercer Valley Ry. Co
Donora Southern Ry. Co —
138,042.86
62,166.00
All due to Union Steel Co.
Do.
107,500.00
All due to Sharon Tin Plate Co.
•Sharon Tin Plate Co
tMatthews Woven Wire
Fence Co.
^Sharon Coal & Limestone Co.
96,736.32
All due to Union Steel Co.
■ This company has also a capital surplus of $2,000,000 arising from merger of companies.
4416
UNITED STATES STEEL COKPOEATION.
CiAiKTON Steel Co. (Pennsylvania).
Capital stock (all owned by United States Steel Corporation) $3, 500, 000
B ondedand mortgage debt 5,787,000
The subsidiary companies of Clairton Steel Co., their capital stocks and capital
liabilities, are aa follows:
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and
other capital
debt.
Remarks.
tSt. Clair Terminal R. R. Co.
100
{1,000,000.00
Jl, 293, 377. 65
|0f this indebtedness, SS43,377.6fi is
due to the Clairton Steel Co. and
$81,000 to United States Steel Cor-
poration.
{Of this ndebtedness, 1522,000 Is due
0 to the Clairton Steel Co.
tClairton Land Co ..
100
100
51
1,000.00
498,750.00
26,000.00
1,722,000.00
fSt. Clair Limestone Co
Tennessee Coal, Iron & Railboaj) Co. (Tennessee).
Capital stock:
Common (all, except $87,202.50, owned by United States Steel
Corporation) $32,529,997.50
Preferred (none owned by United States Steel Corporation) 124, 500. 00
Alabama Steel & Shipbuilding Co., preferred stock (guaranteed)
(none owned by United States Steel Corporation) 178, 600. 00
Bonded and mortgage debt (does not include $445,000 bonds in sinking
fund; $7,000 owned by United States Steel Corporation) 14, 141, 500. 00
Deben ture (loan) notes (all owned by United States Steel Corporation) 10, 358, 000. 00
Tha subsidiary companies of Tennessee Coal, Iron _&j Railroad Co. their capital
stocks and capital liabilities, are as follows:
Total capital stock and capital
liabilities.
Per
cent
stock
owned
by
parent
com-
pany.
Capital stock.
Bonded mort-
gage and
other capital
debt.
Remarks.
♦Birmingham Southern R. R.
Co.
100
100
57+
60
$1,200,000.00
10,000.00
450,163.76
800,000.00
$1,169,288.83
1,623,770.29
All due to Tennessee Coal, Iron tt
Railroad Co.
Do.
fPotter Ore Co
OPERATING CONTRACT.
American Sheet & Tin Plate Company, a corporation of New Jersey (hereinafter called
"American"), and Union Steel Company, a corporation of Pennsylvania {hereinafter
called " Union "), hereby agree asfolhws:
First. Union hereby leases unto American from January 1st, 1904, its sheet mill
plant and all equipment connected therewith and used in the operation thereof, situate
at Sharon, Pennsylvania, and known as "Mercer Mill."
Second. American agrees to maintain and operate said plant in a good and work-
manlike manner, making all proper and needful repairs thereto in accordance with
the requirements of the mortgage made by Union to New York Security & Trust Com-
pany, dated December 1st, 1902, and to surrender up the said premises and property
to Union in good condition at the expiration or termination of this lease. And as
Union has transferred to American with said property certain personal property, in-
cluding inventories and cash assets, for use by American for working capital in oper-
ating said property, American a^ees, upon termination of this lease, to return to Union
an equivalent value therefor, either in cash or inventories, or other assets acceptable
to Union.
Third. American agrees to pay to Union, as rental hereunder, the net income
received by it from me operation of said plant after payment of all expenses and
taxes incurred by it in the operation and maintenance of said plant, the precise
method under which said net income shall be determined and the decision as to what
constitutes net income to be agreed upon by the auditor of American and secretary of
Union. American agrees to render Union monthly detailed reports of operations of
the property in such form as may be satisfactory to Union; and also to make settle-
ment in cadi of all amounts due Union in accordance with this section quarterly on
or before the 25th days of February, May, August, and November. In case the net
result of operation of the property should be a deficit, then Union will reimburse
American therefor quarterly on similar dates. American agrees that in determining
the net income of the property leased hereundter it will allow credit for sales of products
and materials manufactured at and sold from said plants, at a selling price therefor
equalling approximately the prices which American may at that time be receiving for
similar products sold under general similar conditions from other mills owned or oper-
ated by American and located in the same district as is the mill leased hereunder.
American further agrees that in determining such net income any products and mate-
rial transferred from the mill hereby leased to any other mills or plants owned or oper-
ated by American shall be credited at a price therefor equal at least to prices it would
receive if said products or materials were sold to any company aflSliated with the
United States Steel Corporation but not owned or operated by American.
Fourth. The cost of additions, construction, and improvements made by American
to or on the property hereby leased shall, if the same be not included in determining
the net income according to section 3 hereof, be charged to Union, and Union agrees
to reimburse American merefor quarterly on the same dates as hereinbefore provided
for settling the net income; provided, however, that American shall undertake no
such additions, construction, and improvements except under the express sanction of
Union.
Fifth. This lease shall continue for a period of one year from the date hereof, and
thereafter until the same shall be terminated by either party giving imto the other six
(6) months' notice of its intention so to terminate this lease. This lease shall not be
assigned by American without the consent in writing of Union. All matters of dis-
gute arising between the parties to this lease and agreement shall be referred to the
nance committee of the United States Steel Corporation as arbitrator, and its decision
shall be final and binding upon the parties hereto.
Sixth. This lease is made by Union and accepted by American imder and subject
to the provisions of the indenture between Union and New York Security & Trust
Company, dated December 1st, 1 902.
4417
Agree-ment made this gist day of February, 1905, between George C. Sturgiss, of Morgan-
town, West Virginia, party of the first part, and the American Sheet & Tin Plate Com-
pany, a- corporation of the State of New Jersey, party of the second part, vntnesseth:
That the party of the first part hereby covenants and agrees to grant, bargain, sell,
assign, convey, and deliver unto the party of the second part, its successors and assigns,
in fee simple, free and clear of all incumbrances and liens, on or before April 20th, 1905,
the following-described property, for the consideration and on the terms hereinafter
set forth, to wit:
(1) The tin plate plant and property of the Morgantown Tin Plate Company, located
in Morgan district, Monongalia Countjr, State of West Virginia, near Morgantown,
including the tract of land on which said plant is located, and all other land of said
company, and the buildings, machinery, fixtures, tools, appliances, and personal
property constituting or in anywise appertaining to said plant; said Morgantown Tin
Plate Com]jany being a bankrupt, and its said buildings, real estate, and property
being now in the hands of a trustee in bankruptcy, and it being understood that the
party of the first part is to acquire title to said property free and clear of all liens,
incumbrances and liabilities, and is to convey the same to the party of the second
part in fee simple.
(2) A tract of land containing fifteen (15) acres, more or less, adjoining the land of said
Morgantown Tin Plate Company, and now owned by the party of the first part, being
the only tract of land of that size owned by the party of the first part adjoining said
Morgantown Tin Plate Company plant.
(3) A contract between the Umon Utility Company and George C. Sturgiss and his
assigns, for the supply of natural gas to said plant, which contract has already been
drafted and submitted to and approved by said American Sheet & Tin Plate Company,
reference to which is made for the terms and conditions thereof.
(4) A contract between the Union Utihty Company and George C. Sturgiss and his
assigns, for the supply of water to said plant, which contract has already been drafted
and submitted to and approved by said American Sheet & Tin Plate Company, refer-
ence to which is made for the terms and conditions thereof.
(5) A contract between the Morgantown and Kingwood Railroad Company and
George C. Sturgiss and his assigns, for the transportation of merchandise of all kinds
to and from said plant, in which contract the freight rate on all shipments to and from
said plant shall be the Morgantown rate, which contract has not yet been drafted,
although the railroad company has agreed to make the same.
(6) A contract between the Morgantown and Kingwood Raihoad Company and the
said George C. Sturgiss and his assigns, in and by which said company agrees to run
and operate suitable passenger trains between Morgantown and said plant at Sabraton
as often as may be necessary to accommodate the employees of said plant, not exceeding
hourly trains m the day time and as often at night as shall be necessary, at a rate of
five cents ($0.05) per person each way; said agreement, however, to be conditioned
upon said plant being operated and furnishing employment to five hundred (500) or
more work people; which contract has not yet been drafted, although the railroad
company has agreed to make the same.
(7) A contract between the West Virginia Coal & Coke Company and said George G.
Sturgiss and his assigns, to furnish all the coal said plant may require, for a period of
ten years, at a rate not to exceed one dollar (-^l.OO) per net ton f . o. b. the works of said
plant, which contract has not yet been drafted, although said company has agreed
to make the same.
(8) An option on five hundred (500) acres of drift minin" coal located not more than
five miles from said plant, at a price not to exceed fifty dollars ($50.00) per acre; also
an option on five hundred acres (500) of shaft mining coal adjoining said plant, at a
price not exceeding thirty dollars ($30.00) per acre ; both of said options to run for sixty
(60) days after the time of the conveyance which shall be made in consummation of
this present contract, and during said sixty days said American Sheet & Tin Plate
Company shall have the right to put down test or drill holes on said shaft mining acreage
for exploration purposes, but at its own cost and expense.
4418
UNITED STATES STEEL, CORPORATION. 4419
(9) A contract wherein and whereby the party of the first part agrees to complete
and connect a street railway to connect said works with Morgantown, West Virginia,
within four months after said plant is in full operation, provided the same is in full
operation within six months after the date of this contract, together with a covenant
and agreement on the part of the party of the first part to advise and assist the party of
the second part in every way possible in order to operate said plant advantageously
and profitably.
The party of the second part covenants and agrees to pay for said property as follows,
to wit: Twenty-five thousand dollars ($25,000.00) upon the execution and delivery
of this present agreement, receipt whereof is hereby acknowledged by the party of the
first part, seventy-five thousand dollars ($75,000.00) upon the conveyance, assignment,
and delivery by the party of the first part of the above described property, and in
addition to said seventy-five thousand ($75,000.00) five hundred dollars ($500.00)
per acre for the fifteen (15) acres, more or less, above described, adjoining said tin-plate
plant, now owned by said party of the first part, and also to cause to be assigned and
transferred to the party of the first part the mechanics' lien and claim of the Canton
Roll & Machine Company, which claim and lien the party of the first part is to release,
or cause to be released, of record at or prior to said conveyance, and in the meantime is
to hold and use the same for the sole purpose of enabling him to conaumma,te and carry
out this present contract, and without recourse in any event or under any circumstances
to the party of the second part or the Canton Roll & Machine Company on account of
the assignment of said claim or the noncoUection or the nonpayment of said claim.
And the party of the second part further covenants and agrees that immediately
after conveyance is made in consummation of this contract, it will enlarge said plant
to at least an eight-mill plant and will put the same in operation as soon as practicable,
and will cause said plant to be designated as the Sabraton Works of the American Sheet
& Tin Plate Company.
The party of the first part hereby deposits with John A. Topping, president of the
party of the second part, fifty thousand dollars ($50,000.00) of first mortgage bonds
of the Morgantown Tin Plate Company, to be held by the party of the second part as
collateral security for the performance by the party of the first part of this agreement
receipt of which bonds is hereby acknowledged.
In witness whereof said party of the first part has hereunto set his hand and seal,
and said party of the second part has caused these presents to be executed on its behalf
by its president, thereunto duly authorized, and its corporate seal to be hereunto
duly affixed, attested by its secretary, the day and date first above written.
Geo. C. Stuegiss. [seal.]
[corporate seal.] American Sheet & Tin Plate Company,
Jno. a. Topping, President.
Attest:
H. B. Wheeler, Secretary.
For value received it is hereby mutually agreed that the within and foregoing con-
tract be, and the same is hereby, modified as follows:
(1) The time for making delivery by the said Sturgess is hereby extended for a period
of twelve (12) months from April 20th, 1905.
(2) Sturgiss agrees to make every reasonable effort to procure title to the tin-plate
plant and property within said period of twelve (12) months and upon procuring same
to then convey it to the American Sheet & Tin Plate Company and otherwise consum-
mate this contract.
(3) The provision of the contract as to 500 acres of drift mining coal is hereby elimi-
nated entirely, and the provision as to 500 acres of shaft mining coal is hereby modified
so as to make the acreage 400 instead of 500.
(4) If Sturgiss, after making every reasonable effort by legal proceedings, appeals, and
otherwise, to procure title to said tin-plate plant and property, is unable to do so, the
contract shall, at his request, be rescinded, and he shall be released from all liability
thereunder upon his paying to the American Sheet & Tin Plate Company all costs and
expenses paid or incurred by it for or on account of the contract or in connection there-
with, including legal expenses and counsel fees.
Geo. C. Sturgiss. [seal.]
[corporate seal.] American Sheet & Tin Plate Company,
By Jno. A. Topping, President.
Attest:
H. B. Wheeler, Secretary.
Pittsburgh, Pa., April ISth, 1905.
Statement of organization expenses.
Date.
Amount.
Wliat for.
Paid to-
April, 1901, to Febru-
ary, 1902.
May, 1901
$660,316.35
50,000.00
75,000.00
6,250.00
25,000.00
100,000.00
60,000.00
1,065.27
48,025.93
10,675.00
1,750.00
9,219.45
3,967.60
185.00
18.00
Intemal-revenue-tax stamps for
securities.
Incorporation tax on increase of
capital stock.
Settlement of all claims in connec-
tion with organization.
Expenses and services in acquire-
ment of Shelby Steel Tube Co.
stock.
Expenses in coimection with organ-
ization.
Acceptance of trust and counter-
signing $304,000,000 United
States Steel bonds.
United States Government.
State of New Jersey.
John W Gates
March, 1902 . ..
September, 1901
May,1901
Norman A. Vilbert— distrib-
uted among W. E.IMiller,
F. 0. Lowden, H. A. Lo-
zier, Albert A. Pope, and
E. L. Coleman.
March, 1902
Do
Francis Lynde Stetson.
C. C. BuTgoyne.
American Bank Note Co.
New York Stock Exchange.
Jones, Caesar & Co.
J. P. Morgan & Co.
Do.
United States Trust Co.
T. J. Hanrahan & Co.
April, 1901
Printing indenture of mortgage
and expenses.
Printing and furnishing stock oer-
tiflcates and bonds.
Fees for listing of stocks on ex-
change.
Examination of Shelby Steel Tube
Co. accounts.
Expenses account exchanging
Bridge and Lake Superior con-
solidated Iron Mines stocks for
United States Steel.
Paid for services of vice presidents,
assistant treasurers, and office
boys, and for rent of office, in
issuing of United States Steel
securities.
Expenses destroying old Carnegie
bonds at Pittsburgh.
6 seal presses of United States
Steel.
April to November
May and August, 1901 . .
August, 1901
December, 1901.
May to October, 1901...
May, 1001
June, 1901
1,041,472.50
4420
TJNITBB STATES STEEL COEPOBATION.
4421
Book 4.
Memorandum of Information Requested by and Furnished to the Bureau
OF Corporations by the United States Steel Corporation.
Washington, D. C, May 26. 1906.
Received of United States Steel Corporation annual miU cost slxeete Tor year 1902
of various subsidiary companies of said corporation, for the several ("epartmentsand
products as enumerated in schedule annexed hereto. Liiai-Li>i L.s" 7i
The mill cost sheets above referred to are received on the understanding that they
are merely loaned to me for my inspection and consideration, that I will not make literal
copies thereof for the files of any department of the United States Government, and
that said cost sheets will be retumea to the United States Steel Corporation as soon as
I][have completed inspection of the same, and in any event prior to July 1, 1907.
Wm. C. Baldwin,
Special Examiner.
Schedule of mill cost sheets referred to in above receipt.
[Keturned Jan. 29, 1910.]
No.
Company.
Department.
Product.
1
Illinois Steel Co
North works
Bessemer iron.
2
do
... .do
Spiegel.
3
do
4
do
do
Rail ingots. Bessemer.
Billet ingots, Bessemer.
Acid ingots, open-hearth.
Basic ingots, open-hearth.
Kails.
6
do
. .. do
6
do
do
7
do
do
8
do
do
9
do
do
Billets (rail mill).
Billets (slab mill).
Slabs (slab mill).
Sheared plates.
Bessemer iron.
10
do
... .do
11
. . do
do
12
do
do
13
.... do
Union worlcs
14
do
do
15
do
do
Spiegel.
16
do .. .
Joliet works
17
do
do
BiUet ingots.
Large billets.
18
do
do
19
do
do
20
do
do
Rods, No. 1 and No. 2 mills.
21
do
do
Merchant bars, continuous mill.
Merchant bars, 12-inch and 18-
22
do
. ..do
23
....do.-
do
inch mill. ^
Long tie plate bars, 18-rnch mill.
Angle spBce bars.
Continuous rail joints.
Tie plates.
Railroad spikes.
Track bolts.
24
do
....do
25
....do
do
26
do
do
27
do
.do
28
, do
do
29
do
...do
Nuts.
30
do
31
do
. ..do
Malleable Bessemer and founury
iron.
32
.do
do
33
do
....do
Merchant steel, old 9-inch mill.
34
do
do
35
do
do
Merchant steel, 12-inch mill.
36
do
do
37
do . -
do
Structural angles, 21-mch mill.
Partly finished continuous
joints, 21-inch mill.
Partly finished base plates,
inch mill.tl
Partly finished bonanza joints
21-inch mill.
Heavy rails, 22-mch light rail
mill.
Light rails, 22-inch light rail mill.
Finished continuous rail joints.
Finished angle spUce bars.
FiQished base plates.
Finished bonanza joints.
38
.do
..;.. So!. :..::::. ::::::::;:::
39
.do
do
40
do
do
41
do
do
42
do
do
43
..do
do
44
do
do
45
do
do
46
do ...
do
47
48
do
do
Rail ingots, Bessemer.
Billet ingots, Bessemer.
No. 1 bloommg mill product.
No. 2 blooming mill product.
Rails and shapes, rail mill.
Splice bars.
49
do
do
50
do
do
SI
do
do
62
.do
do
63
....do
...do
4422 UNITED STATES STEEL COKPOEATION.
Schedule of mill cost sheets referred to m above receipt — Continued.
No.
Company.
Department.
Product.
54
ATnpr''^*^T> "Rridgp Hn
Open-hearth basic ingots, ordi-
nary process.
Open-hearth basic ingots, tablet
process.
55
.. do .
. do .. .
56
57
do......
do
Billet ingots, Bessemer.
Blooming mill.
Bessemer iron.
58
do
. ..do
59
do
Riverside works
60
....do
....do
Billet ingots, Bessemer.
Blooming mill.
61
do
do
62
....do
63
American Steel & Wire Co...
.. ..do
Neville worlis
Do.
64
Do.
65
do
Sheenberger works
Do.
66
do
Billet ingots, Bessemer.
Basic ingots, open hearth.
No. 1 and No. 2 blooming mill.
Sheared plates, 127-inch mill.
67
do ...
do
68
. ..do
do
69
do . .
do :
70
. ..do
do
Sheared plates and sheets, 60-inoh
to 72-moh mill.
Sheared plates and sheets, 54-inoh
to 60-inoh mill.
Billet tagots, Bessemer.
Blooming mill.
Bessemer iron.
71
do
do
72
do
Twenty-sixth Street works,
Pittsburgh.
73
do
74
do
Newburgh and Central
works.
75
. ..do
Billot ingots, Bessemer.
Acid ingots, open-hearth.
Basic ingots, open-hearth.
No. 1 bloommg mill.
No. 2 blooming mill.
No. S blooming mill.
No. 3 Garrett rod mill.
76
do
do . . . .
77
do
. ..do
78
. ..do
do
79
do
. ..do
80
do
do
81
do
do
do
do
do
82
.do
83
do ...
No. 4 new Garrett rod mill.
84
....do
Bright coarse wire.
Garrett rod mill.
35
do
American works
86
do
do
87
do
..do
Continuous billet mill (9monthsj.
Continuous rod mill (9 months).
Bright coarse wire.
88
....do
do
89
do
....do
90
do
91
do ...
do
Bright coarse wire.
Garrett rod mill.
92
do
....do
H. P. works
93
do
Bri^t coarse wire.
94
do
95
do
li-inch bUlets, bUlet mUl.
96
do
97
do
do
mil.
No 3 continuous rod mill, steel.
93
do
do
do
No. 3 continuous rodmiil. copper.
No. 4 continuous rod mill, steel.
Bri^t coarse wire.
99
do
100
do
do
101
do...?
102
do.. . .
Do.
103
do
Meeker Avenue works
DeKalb works
Do.
104
do
Do
105
do
Do.
106
do
Anderson worlds
No. 1 Garrett rod mill.
107
do
do
Bright coarse wire.
Garrett rod mill.
108
do
South Side works .
109
do
do
Bright coarse wire.
Garrett rod mill.
110
do
Rankin works ." ...
111
do
do
Bright coarse wire.
112
do
113
do
do
Bright coarse wire.
114
do
115
do
do
Bright coarse wire.
Open-hearth add ingots, old
plant.
Open-hearth basic ingots, old
plant.
Open-hearth basic ingots, new
plant.
Old blooming mill.
New blooming mill.
Do.
116
do
117
do
do
118
do
do
119
do
do
120
do
do ....
121
do
do
122
do
do .
123
do
do
li-inch billets. No. 2 billet mill
(10 months).
No. 2 continuous rod mill, steel.
No. 2 continuous rod mill, copper.
No. 3 continuous rod mill, steel.
124
do
do
125
do
do .
126
do
do
UNITED STATES STEEL CORPORATION.
4423
Schedule of mill cost sheets re/efred to in above receipt — Continued.
Company.
Departanent.
Product.
No.
2
American Steel & Wire Co.
do
.do.
.do.
.do.
-do.
.do.
-do.
.do.
-do.
.do.
-do.
.do.
.do.
American Sheet & Tin Plate
Co.
....do
....do
....do
....do
....do
do
..do.
..do.
..do.
..do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do-,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.
.do.,
.do.,
.do..
Worcester works.
do
.do.
.do.
.do.
.do.
.do.
Worcester works (central).
Worcester works (north) . .
-do.
.do.
-do.
.do.
Vandergrift-Apollo works.
.do.
.do.
.do.
.do.
W. Dewees Wood works.
do
do
do
do
do....
do
Soottdale works
Wells¥ille works
do
Struthers works
Aetna-Standard works . . .
Dover works
do
Guernsey works
do
Pigua works
Midland works
American works
....do
Morewood works
Radfleld works
Beaver works
Cambridge works
Canonshurg works
Champion works
Chester works
Crescent works
Ellwood works
Falcon works
Humbert works
La Belle works
Laughlin works
MoDongahela works
National works
New Castle' works
Pennsylvania works
Pittsburgh works
Shenango works
Star works
United States works
No. 3 continuous rod mill, copper.
No. 4 continuous rod mill, steel
(year).
No. 5 continuous rod mill, steel
(10 months).
No. 6 continuous rod mill, steel
(10 months).
Bright coarse wire (January to
June).
Bright coarse wire, 1/0 and
coarser (July to December).
Bright coarse wire, finer than 1/0
(July to December).
Bright coarse wire (year).
Bright coarse wire, 1/0 and
coarser.
Booth process (July to Decem-
ber).
Bright coarse wire, 1/0 and
coarser (McKoan process) (July
to December).
Bright coarse wire, finer than 1/0
(Booth process) (July to De-
cember).
Bright coarse wire, finer than 1/0
(Jackson process) (July to De-
cember).
Bright coarse wire, finer than 1/0
(Midgley process) (July to De-
cember).
Open-hearth acid ingots.
Open-hearth basic ingots.
Sheet bars.
Black sheets.
Galvanized sheets.
Open-hearth acid ingots.
Run-out plate.
Hammered blooms.
Sheet bars.
Black plates.
Black and charcoal sheets.
Hammered sheets.
Black sheets.
Sheet bars.
Black sheets.
Do.
Do.
Do.
Galvanized sheets.
Black sheets.
Galvanized sheets.
Black sheets.
Do.
Black plate and tin plate.
Do.
Do.
Do.
Do.
Black plates.
Do.
Black plate and tin plate.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Description.
Scale contracts, entered by Carnegie Steel Co., and on which It made shipments during the year 1902.
(Referred to in receipt of June 23, 1906.)
4424
UNITED STATES STEEL OOBPOBA.TION.
Schedule of mill cost sheets for the year 190^.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
160J
185
American Sheet & Tin Plate
Co.
Carnegie Steel Co
Sheet bars.
Edgar Thomson works
Bessemer iron.
186
Speigel.
187
do.. .. ...
... do
Ferromanganese.
188
do
do ::
RmI ingots, Bessemer.
189
..do
do
190
do
do
Rails, No. 1 mill.
191
... .do..
do
Rails, No. 2 mill.
192
do
Duquesne works
Bessemer iron.
193
. . .do
Basic iron.
194
do
do
Billet ingots, Bessemer.
195
do
do
Open-hearth ingots, basic.
196
do
do
40-inch blooming mill.
197
do
do
21-inch mill, small billets.
198
do
. do
21-inch mill, sheet bars.
199
do
do
21-inch mill, spUce-bar shapes.
200
do
do
16-inch mill, small billets.
201
do
do
14-inch mill, small billets.
202
...do
do
13-inch mill, merchant bars.
203
do . ..
do
10-lnch mill, merchant bars.
204
. ...do
do
Splice bars.
205
do . .
Carrie works
Basic iron.
206
do
Speigel.
Ferromanganese. [''
207
do i
do
208
do
Billet ingots, Bessemer. ^
209
do
do
Open-hearth basic ingots, No. 1
210
do
do
plant (ordinary process). - f
Open-hearth basic ingots, No. 2
211
do
do
plant (ordinary process).
Open-hearth basic ingots, No 3
212
do
do
plant (model products). H
Open-hearth basic ingots, No. 3
213
do
do
plant (ordinary process).
40-inch blooming mill.
214
do
do
215
do
do
28-inch blooming mill.
216
do
do...:
40-inch cogging mill.
33-inch cogging mill.
35-lnch mul, structural shapes.
217
do
do
218
.. do
... .do
219
do
do
220
...do
do.
23-inch mill, structural steel.
221
do
do
30-inch slabbing mill.
32-inch slabbing mill.
128-inch sheared plate mill.
119-Inch sheared plate mill.
48-inch universal plate mill.
42-ineh unirersal plate mill.
10-lnch mill, angles, flats, etc.
Axles, forged only.
Axles, turned on W. S. & J.
222
do
do
223
do
. do
224
do
do
225
...do.
... do
226
do
do
227
do
. ...do
228
do
Howard Axle works
do
229
do
230
do
do
231
do
Isabelle works
232
do
do
233
do
Lower Union Works, Pitts-
burgh.
... do
9-inch mill, merchant;bars.
12-inch mill, merchantjbars.
13-hich mill, merchant bars.
18-inch Sheared Plate'Mill.
234
. ...do . .
235
do
do.
236
do
do
237
do
Upper Union works, Pitts-
burgh,
do
8-inch mill, merchantjproducts.
12-inch mill, merchanfproduots.
17-inch mill, angles products.
18-inch mill, merchant products.
20-inch mill, merchant products.
Splice bars.
No. 1 universal plate mill.
No. 2 universal plate mill.
238
do
239
do
do
240
do
... do
241
do
do . ...
242
do
do
243
do
do
244
do
... do
245
do
246
do
... do
Billet ingots, Bessemer' rail.
Ingots, Bessemer.
247
do
do
248
.....do
... do
249
do
do
Rails
250
do
. . do
Large billets.
251
do
do
252
do
. . do
253
do
254
do
do
Billet ingots, Bessemer.
255
do
do
256
do
... do
Large billets.
Sheet and tinlbais.
257
do
do
UNITED STATES STEEL COBPORATION.
Schedule of mill cost sheets for the year 1902 — Contmued.
4425
No.
Company.
Department.
Product.
268
Carnegie Steel Co
Mingo works
Bessemer iron.
259
do
260
do
do
261
do
do
Sheet bars.
262
do
do
10-inch mill, merchant products.
Bessemer iron.
263
do
264
do
do
Billet ingots, Bessemer.
Blooms and billets.
265
do
do
266
do
do
267
do
Bessemer iron.
268
do
do
269
do
...do
Blooms and Dillets. i
270
do
do
Skelp.
271
do
272
do
do
Open-hearth basic ingots.
273
do
do
274
do
do
Small billets.
275
do
276
do
Zanesville works
Do.
277
do
8-inch mill No. 6, merchant prod-
278
do
do
ucts.
8-inch mill No. 6, merchant prod-
279
do
..do . ..
ucts.
8-inch mill No. 7, merchant prod-
280
do
do
ucts.
8-inch mill No. 8, merchant prod-
281
do
do
ucts.
8-inch mill No. 9, merchant prod-
282
do
.. .do
ucts.
9- inch mill No. 3, merchant prod-
283
do
do ,....
ucts.
10-inch mill No. 2, merchant
284
do
do
products.
16-inch mill No. 1, merchant
285
...do..
Clark works
products.
8-inch mill No. 3, merchant prod-
286
do
do
ucts.
Do.
287
do
do
9-inch mill No. 4, merchant prod-
288
...do...
....do
ucts.
10-inch mill No. 6, merchant
289
do
do
products.
12-inch mill No. 6, merchant
do
do
products.
20-inch mill No. 7, merchant
do
products.
...do. .
do
8-lnch mill No. 1, merchant prod-
do
do
ucts.
8-inch mill No. 2, merchant prod-
294
do
do
ucts.
10-inch mill No. 4, merchant
295
do
do
do
products. ^ ^
16-inch mill No. 3, merchant
products.
8-inch mill No. 1, merchant prod-
297
do
do
ucts. , ^
10-20-inch No. 2, merchant prod-
298
do
Duncansvllle works
ucts.
Much bar, old puddle mill.
do
do
Much bar, new puddle mill.
300
do
do
8-inch mill No. 1, merchant prod-
301
302
303
304
305
306
do
do
ucts. 1 ; •
8-inch mill No. 2, merchant prod-
do
ucts, 'tw "r
10-inch mill No. 3, merchant
do
do
products. Ic
16-inch mill No. 4, merchant
products.
do
do
8-inch mill No. 1, merchant prod-
do
do L
ucts.
10-inch mill No. 2, merchant
do
Upper Union works,
Youngstown.
do
products.
7-8-inch mill Nos. 1 and 2, mer-
308
309
310
do
chant products
8-inoh mill No. 3, merchant prod-
ucts.
do
do
do
do
products.
, ^ m
products.
4426
UNITED STATES STEEL COKPOKATION.
Schedule of mill cast sheets for the year 190S — Continued.
No.
Company.
Department.
Product.
311
Carnegie Steel Co
tTpper Union works,
Youngtown.
Lower Union works,
Youugstown.
12-inch mill No. 6, merchan-
312
do
products.
Much bar, No. 2 mill.
313
do
Much bar. No. 3 mill.
314
do
do
7-inch mill No. 2, merchant prod-
315
.. do
do
ucts.
8-inch mill No. 4, merchant prod-
316
do
ucts.
8-inch mill No. 5, merchant prod-
317;
318
do
do
ucts.
10-inch mill No. 6, merchant
. do
do
products.
16-lnoh mill No. 7, merchant
319
do
products.
Much bar.
320
. . do
.... do
10-inch mill No. 1, merchant
321
do
do
products.
20-inch mill No. 2, merctiant
322
do
Girard works
products.
Much bar.
do
do
7-inch mill No. 1, merchant prod-
324
.....do
ucts.
8-inoh mill No. 2, merchant prod-
325
... do
do
ucts.
10-inch mill No. 3, merchant
products.
Schedule and statistical statements covering operations for year 1902.
No."
Description.
P.C.I...
P.C.2...
P.O. 3...
P. C. 4.:.
Combined general proiit and loss account for all coal and coke companies.
Details by months of shipments of coke by H. C. Friek Coke Co.
Details by montlis of shipments of coal by all coal and coke companies.
Details of miscellaneous profit and loss for all coal and coke companies.
This receipt also covers the following revised sheets and additional information
received November 20, 1907:
No.
Description.
P.C.I
P. C. la
P. C. lb
P. 0.4
1 revised.
P. and analysis, all companies.
Crushed coke inventory J. C. Frick Coke Co.
Revised.
Schedule of cost sheets for the year 1902.
No.
Company.
Department.
Product.
CI
H. C. Frick Coke Co
Coke.
Southwest Connells v i 1 1 e
Coke Co.
Continental Coke Co
do
Do
C2
do.__ _
Do
American Coke Co I dn
Do
....do
do....
C3
Ingleside Coal Co
Ingleside mine
Do
UNITED STATES STEEL COBPOEATION.
4427
Sdiedule of cost sheets referred to in above receipt for the year 1902, for fabricated struc-
tural work, for the several departments and classes of work as enumerated in schedule
annexed hereto.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
326
3 single-track deck-pin spans.
5 single-track deck-plate girder -
skew spans.
12-story building.
20-story building.
Double-track through pin-con-
nected span.
Single-track plate-girder viaduct.
3 pony-truss spans.
1 pony-truss span.
327
do
. ..do ...
328
do
do
329
. ..do
do
330
do
do
331
.do
do
332
do
333
.do
do
334
do
do
Bridge, 3 spans.
Structural work for new rail-
335
.do
do
336
do
do
road shops.
22 bridges of various lengths and
types.
Blowing-engine house.
337
do
Keystone plant
338
.do
do
339
do
.do .
6 single track, pin-connected
through-truss spans.
2 draw spans.
340
.do
do
Schedule of mill cost sheets for the year 1902.
No.
Company.
Department.
Product.
341
Illinois Steel Co
Smith wnrlrs
Bessemer iron, furnace No 10
342
American Steel & Wire Co..
do
343
"Mpvillfi wnrlrs
Bessemer iron, furnace No. K
344
345
dO''
Duquesne works . .
Bessemer iron, furnace No 1
346
do .
347
do
do
Basic iron, furnace No. 4.
348
do . ..
Schedule of mill cost sheets for the year 190S.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
1
Illinois Steel Co
North works . . .
Speigel.
2
do
3
do
do
Rail ingots, Bessemer.
4
do
.do .•
Billet ingots, Bessemer.
do
do
6
do
do ....
Rails.
7
do -. --
...do
Billets (clab null).
8
do
do
Slabs (clab mill).
9
do
...do
Sheared plates.
do
do
11
....do
12
do
.do
Speigel.
13
do
Bessemer iron.
14
do
.do
Billet ingots, Bessemer.
Large billets.
do . ..
do
..do
Small billets.
17
"do
.do
Rods Nos. 1 and 2 mills.
18
do
. ..do
Merchant bars, continuous mill.
do'
do
Merchant bars, 12-inch and 18-
20
21
22
23
24
25
26
27
28
do
do
do
do
do
inch mills.
Long tie-plate bars, 18-inch mil!.
Angle sphce bars.
Continuous rail joints.
Tie-plates.
Railroad spikes.
Tack bolts.
Nuts.
do
.do
do
do
do
do
do
do
do
Milwaukee works
do
do
Malleable Bessemer iron.
4428
UNITED STATES STEEL. COKPOBATION.
Schedule of mill cost iheetsfor the year 1903 — Continued
No.
Company.
Department.
Product.
29
IlUnols Steel Co
Mllwao^eo works
Merchant steel, S-inch mill.
30
31
32
do
do
do
v^'.'Ao.''.v^v^.. v.. '.'.'.. '.'.'.'.'.
.do
Merchant steel, 1 to 9 inch mills.
Merchant steel, 2 to 9 inch mills.
Merchant steel, 12-inch mill.
33
do
do
Merchant steel, 21-inch mill.
34
do
. .do
Structural angles, 21-inch mill.
do
do
Partly finished continuous rail
36
do
do
joints, 21-iach mill.
Partly finished base plates.
37
do
do
21-inch mill.
Partly finished bonanzo joints,
38
do
. . .do
21-inch mill.
Heavy rails, 22-inch light-rail
39
do
do
mill.
Light rails, 22-inch Ught-rail mill.
40
do
.do
41
.do
do
Finished angle splice bars.
42
do
...do
Finished base plates.
43
do
do
Finished bonanzo joints.
44
do
...do
Railroad spikes.
Schedule of iron-ore mine cost sheets for year 1902 for iron-ore mines of varums subsidiary
companies of said corporation, as enumerated in schedule annexed hereto.
[Eetumed Feb. 17, 1910.]
No.
Name of mine.
No.
Name of mine.
0-1
Aragon.
0-23
Savoy.
0-2
Chapln.
0-24
Soudan.
0-3
Columbia.
! 0-25
Zenith.
0-4
Cundy.
i 0-26
Burt.
0-5'
Hope.
1 0-27
Clark.
0-6
Iron Ridge.
Mansfield.
0-28
Day.
Chfeholm.
0-7
; 0-29
0-8
Michigan.
Biverton.
; O-30
Clen.
0-9
0-31
Hull.
O-IO
Bessie.
i 0-32
Rust.
o-n
Hartford.
0-33
PlllsburJ.
0-12
Lake Superior "hard."
0-34
Spruce.
0-13
Lake Superior "soft."
' 0-35
Sellers.
0-14
Negaunee.
1 0-36
Adams.
0-15
Queen.
0-37
Duluth.
0-16
Winthrop.
; 0-38
Fayal.
0-17
Atlantic.
! 0-39
Oenoa.
0-18
Chicago.
1 O^O
Auburn.
0-19
Norrls-Aurora.
i 0-41
Mountain Iron.
O-20
Tilden.
i 0-42
Sauntry.
0-21
Chandler.
1 0-43
Virginia.
0-22
Pioneer.
1
Schedule of mill cost sheets for the year 190S.
[Returned Jan. 29, 1910.1
No.
Company.
Department.
Product.
45
46
. ..do
do
Rail ingots, Bessemer.
Billet Ingots, Bessemer.
No. 1 bloommg milL
No. 2 blooming mill.
47
do
... do
48
49
SO
do
do
do
do
do
do
61
do
do
^lice bars.
Open-hearth basic ingots, ordi-
nary process.
Open-hearth basic ingots, Tablet
process.
Bfooming-niill product.
Structural shapes, 23-inch and 28-
inch milL
Structural shapes, 20-tach and 2J-
inch milL
Structural shapes, 12-inch mill.
Bessemer iron.
52
Amprip^n "Rridgfi On.
Pencoyd works.
S3
do
do
S4
55
do
do
do
do .
S6
57
do
do
do
do
56
National Tube Co
National TVortn. ...
59
do
do
Billet ingots, Beesemff.
msriTED STATES STEEL CORPOKATION.
Schedule of mill cost sheets for the year 190S — Continued.
4429
-Vo.
Company.
Department.
Prodnct.
, Katlonal TubeCo-. | Natioiial works.
I do ! do
j do ...j do
do I do
do ' do
' do I do
\ do I do
do i do
do , do
, do do
do '- do
I do ' do
1 do \ do
do do
I do ' do
, do do
I do I do
do do
do do
do do
do do
do do
do ..do
90
91
92
93
94
93
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
lie
117
118
119
120
121
122
123
124
125
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
-do.
.do.
-do.
.do.
.do.
.do.
.do.
.do.
.do.
.do [ Nolton rolling mills -
.do i do -
.do -.1 do
.do do
.do do -
.do do
.do ! do
.do do. .
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do
.do
Elba rolling mills.
do
do
do
do
do......
do
.do..
.do.,
.do..
.do.
.do Republic department .
.do do
.do I do
.do I do
,do ■ do
.do do
.do i do
.do ' do
.do I do
.do [ do
.do 1 do
So-incb blooming miD.
Much bar, N'o. 1 puddle Tnill.
Much bar, Xo. 2 paddle mJlL
Scrap bar, Xo. 2 puddle miD.
Refined plate me£aL
Common plate metaL
Cbarooal metal blooms.
Cbarcoal scrap blooms.
Charcoal met^ bar, Xo. 1 mUl.
Charcoal socket iron, Xo. 1 Tnill.
Charcoal scrap bar, Xo. 2 mUL
Charcoal metal bar, Xo. 2 mUl.
Steel plate. No. 2 mffl.
Sheared steel skelp, Xo. 1 mill.
Sheared iron skdp. No. 1 milL
Grooved steel skdp, Xo. 2 milL
Grooved iron sfeelp, Xo. 2 mill.
Socket iron, Xo. 2 mill.
Grooved steel skelp. No. 3 miU.
Grooved iron ^etp, Xo. 3 miU.
Grooved steel skeQ>, Xo. 4 mill.
Grooved iron skelp. No. 4 mUL
Grooved steel scrap, Xo. 5 mill.
Grooved iron scrap, Xo. 5 mUl.
Bent skelp, lay mill,
"Welding s^lp, butt and lap mills.
Fmishea tobolar goods.
Finished galvanized tubular
goods.
Bait socket torgings.
Welded socket forgings.
Fimsbed black sockets.
Finished galvanized sockets.
Spilt sockets.
GalvuiiEing cost.
Grooved-^rteel skelp, Xo. 1 milL
Grooved-iron skelp, Xo. 1 mill.
Socket-steel skelp. No. 1 mill.
Socket iron. No. 1 mill,
Grate-bais steel skelp. No. 1 milL
Gtooved.steel skelp. No. 2 mill.
GiDoved-iron skelp. No. 2 milL
Socket-steel skelp, Xo. 2 mill.
Socket-iron skelp, Xo. 2 milL
Tool iron, ete.
Grooved-steel skelp, Xo. 1 mill.
Giooved-iron skelp, Xo. 1 milL
Grooved-steel skelp, Xo. 2 mill.
Grooved-iion skelp, Xo. 2 mill.
Socket iron Xo. 2 milL
Tool iron, Xo. 2 mill.
GrDoved.«teel skelp, Xo. 3 mill.
Giooved-4ron skelp. No. 3 mill.
Socket iron. No, 3 mill.
Tool iron, No. 3 mill.
Thread-protector iron.
Muck bar, Xo. 1 mill.
Scrap bar. No. 1 miU.
Mock bar. No. 2 mill.
Sheared-steel skelp. No. 1 milL
Grooved-flteel skelp. No. 2 milL
Grooved-iron skelp. No. 2 milL
Giooved-gteel skelp. No. 3 mill.
Grooved-iron skelp. No. 3 mill.
Black-steel sheets. No. 2 mill,
Black-iron sheets. No. 2 mill.
Sheet and scrap bar.
Schedule and gtatistiad gtatemenU covering operation of United States Steel Corporation
for the year 1902, as enumerated in schedule annexed hereto.
[Returned Feb. 18, 1910.J
No.
Description.
P.U.8.1
P.'U.S.2
General profit and loss account of United States Steel Corporation for year 1902.
Classified statement of administrative and general expenses of TJnited States Steel Cor-
poration for year 1902.
31572— No. 53, pt 3—12 S
4430
No.
UNITED STATES STEEL COKPOEATION.
Book 2.
Schedules and statistical statements for year 1902.
[Returned Feb. 19, 1910.]
Description.
P. O. 1..
1
2
3
4
5
Combined general profit and loss account for all iron-ore mining companies.
Memorandum of above sheets in P. O. 2.
Summary of ore delivered, 1902.
Oliver Iron Mining Co., deliveries of ore to subsidiary companies, 1902.
Oliver Iron Mining Co., deliveries of ore to outside customers, 1902.
Miimesota Iron Co^ deliveries of ore to all parties, 1902.
American Mining Co. , deliveries of ore to all parties, 1902.
Lake Superior Consolidated Iron Mines Co., deliveries of ore to all parties, 1902.
Adams Mining Co., deliveries of ore to all parties, 1902.
Schedules and statistical statements of National Steel Co. for the year 1902.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 5..
P. M. 6.
General profit and loss account of National Steel Co. for year 1902.
Summary of shipments and sales; schedule of monthly shipments to subsidiary com-
panies; schedule of monthly sales to outside customers— for National Steel Co. for
year 1902.
Schedule of mill cost sheets for the year 190S.
No.
Company.
Department.
Product.
126
National Tube Co . .
Pennsylvania department...
- ..do
Bent skein, lap mill.
Welded stelp, lap mill.
Finished tubular goods.
Bent socket forgings.
Welded socket forgings.
127
do
128
do
do
129
.....do
do
130
do
do
131
do
do
132
do
. do
Split sockets.
133
.. ..do
Continental department
134
do
Scrap bar. No. 1 mill.
Bent skelp, lap mill.
Welded skelp, butt and lap mill.
Finished tubular goods, butt and
lap mill.
Finished galvanized tubular
goods.
Bent socket forgings.
Welded socket forgings.
135
do
do •
136
do
do
137
do
do
138
do
do. ...
139
do
do
140
......do
do
do
do
do
do
do
do
do
141
do
142
do
SpUt sockets.
143
Steuben ville works,. . .
144
145
do
146
do
Billet ingots, Bessemer.
32-inch blooming mill.
Grooved steel skelp. No. 1 mill.
Grooved steel skelp. No. 2 mill.
Grooved steel skelp, No. 3 mill.
Grooved steel skelp. No. 4 milt.
Grooved steel skelp, No. 6 mill.
Bent skelp, lap mill.
Welded skelp, butt and lap mill.
Finished tubular goods.
147
do.
148
do
do
149
do
do
150
do
do
151
do
do
do
do
152
do
153
do... .
154
do
do
155
do
do..
156
do
do
157
do
do.. .
goods.
Bent socket forgings.
Welded socket forgings.
158
do
do
do
do
do
do
159
do
160
do
Finished galvanized sockets.
Split sockets.
Galvanizing cost.
161
do
162
do
UNITED STATES STEEL COKPOBATION.
Schedules and statistical statements for the year 1902.
4431
No.
Description.
P.M. 2.
P. M.S.
General profit and loss account of American Steel Hoop Co. lor yea 1902.
Summary of shipments and sales; (schedule of monthly shipments to subsidiary com-
panies; schedule of monthly sales to outside customers) for American Steel Hoop Co.
for year 1902,
Schedules and statistical statements of Pittsburg Steamship Co. for year 1902.
[Returned Feb. 18, 1910.]
No.
Description.
P.T.I
General proflt and loss account of Pittsburg Steamship Co. for year 1902. Schedule of
operatmg expenses and statistics of Pittsbiu:g Steamship Co. for year 1902.
Schedules and statistical statements of Pittsburg & Conneaut Dock Co. for the year
[Returned Feb. 18, 1910.]
No.
Description.
P. T. 2...
General proflt and loss account of Pittsburg & Conneaut Dock Co. for the year 1902.
Schedule of mill cost sheets for the year 1903.
[Returned January 29, 1910.)
No.
Company.
Department.
Product.
163
American department
do
164
do - -
Welded skelp, butt and lap mill.
165
do
do
166
do
do
lap mill.
Finished galvanized tubular
do
do
goods.
Bent socket forcings.
Welded socket forgings.
168
do
.. do
do
Finished black sockets.
170
do
do
Finished galvanized sockets.
do
do
172
do
do
Galvanizing cost.
do
174
do
do
Welded skelpfbutt and lap mill.
do
do
Finished tubular goods.
176
do
Youngstown department
do
do
Welded skelp, lap mill.
178
do
do
Finished tubular goods, lap mill.
do
do
Bent socket forgings.
Welded socket forgings.
180
do
do
do
do
182
do
do :
Split sockets.
do
184
do
do
Welded skelp, lap mill.
do
do
186
do
do
Bent-socket forgings.
do
do
188
do
do
Finished black sockets.
do
do
do
Syracuse department
do
Bent skelp.
Welded skelp.
Finished tubular goods.
Bent skelp.
do
192
*do
do
193
do
Cohoes department
do
do
195
do
do
Finished tubular goods.
do
do
Bent socket forgings.
Welded socket forgings.
Finished black sockets.
197
do
do
198
do
do
4432 UNITED STATES STEEL COEPOBATION.
Schedules and statistical statements of Ajnerican Sheet Steel Co. for year 1902.
[Returned February 17, 1910.]
No.
P.M. 9
P. M. 10...
Description.
General profit and loss account ol American Sheet Steel Co. for year 1902.
Summary of shipments and sales: Schedule ot monthly shipments to sntsidiary com-
panies; schedule of monthly sales to outside customers.
Schedule of mill cost sheets for year 190S.
[Returned Jan. 29, 1910.] -
No.
Company.
Department.
Product.
]99
American Steel & Wire Co...
do
Neville works
Bessemer iron.
200
Allegheny works
Do.
do
Do.
202
do
do
Billet ingots, Bessemer.
Open-hearth basic ingots.
No. 1 blooming mill.
do
do
204
do
do
205
do . . . .
do
No. 2 blooming mill.
206
do
do
Sheared plates, 127-inch mill.
207
do
do
Sheets and plates, 60-inch and
72-inoh mills.
Sheets and plates, 54-tnch and
208
do
. .do
209
do . .
Newburgh works
60-inch mills.
Bessemer iron.
do
do
211
do
..do
Open-hearth acid ingots.
do . . . .
do
Open-hearth basic ingots.
No. 1 blooming mill.
213
do
do
214
do
. ..do
35-ineh blooming mill.
215
do
do
Garrett rod mill.
216
do
..do
Bright coarse wire.
217
do
Garrett rod mill.
218
do
do
18-mch continuous billets.
219
.do
do
do
do
Bright coarse mill.
221
. ..do
do
do
Bright coarse wire.
Garrett rod mill.
223
do
H. P. worts
224
. do
Bright coarse wire.
225
. do
H. P. works
226
do
Waukegan works.
IJ-incb billets, continuous mill.
227
do
do
228
. ..do
do
No. 3 continuous rod mill (steel).
229
do
do...
230
do
do
per).
No. 4 continuous rod mill (steel).
Bright coarse wire.
231
do
do
232
..do
Bluff Station works
233
do
Do
234
do
De Kalb works
Do
235
. ..do
Rockdale works
Do
236
do
237
do
do.
Bright coarse wire.
238
do
239
do
do...
Bright coarse wire.
Garrett rod mill.
Bright coarse wire.
Garrett rod mill.
Bright coarse wire.
Tin-plate bars.
Roughing rod mill.
No. 1 continuous rod mill.
No. 2 continuous rod mill.
Bright coarse wire.
li-inch bUlets, conthiuous mill.
Ciontinuous rod mill.
Bright coarse wire.
Garrett rod mill.
Bright coarse wire.
Acid open-hearth ingots, old
works.
Acid open-hearth ingots, new
works.
Basic open-hearth ingots, new
works.
Special basic ingots, new works.
240
do
Rankin works
241
do
do
242
do
Braddock works
243
do
do
244
do
245
do
... do
246
do
do
247
do
do.
248
do
do
249
do
250
do
do
■2.1 1
do
. . . do
do
253
do
do...
L'54
do
255
do
....do
256
do
do
257
do
.-..do
UNITED STATES STEEL COBPOEATION.
Schedule of mill cost sheets for year 190S — Continued.
4433
No.
Company.
Department.
Product.
258
American Steel & Wire Co...
do
Worcester works
Blooming mill.
Charcoal blooms.
BiUets, steel, merchant mill.
Billets, charcoal, merchant mill
IJ-inch bUlets, No. 2 Ijillet mill.
Steel rods. No. 2 continuous mill.
Copper rods, continuous mUl.
Steel rods, No. 3 continuous mill.
Copper rods. No. 3 continuous
mill.
Steel rods, No. 4 continuous mill.
Steel rods. No. 5 continuous mill.
Steel rods, No. 6 continuous mill.
Bright coarse wire 1/0 and coarser
(October, November, Decem-
ber).
Brightcoarse wire 1/0-8 (October,
November, December).
Bright coarse wire 9-14 (Oetober,
November, December).
Bright coarse wire 15-20 (Octo-
ber, November, December).
Bright coarse wire, special 9-14
(October, November, Decem-
ber).
Bright coarse wire 9-14 (October
November, December).
Bright coarse wire 15-20.
Bright coarse common 1/0 and
coarser (July to December).
Bright coarse special 1/0 and
coarser (July to December).
Bright coarse common 1/0-8
(October to December).
Bright coai^e special 914 ( October
to December).
Bright coarse common 9/14 (Octo-
ber to December).
Bright coarse special 9-14 (Octo-
ber to December).
Bright coarse common 15 and
finer to 20 (October to Decem-
- ber).
Bright coarse special 15 and finer
to 20 (October to December).
259
do
260
do
do.. .
261
do
do
262
do
do
263
do
do
264
do
do
265
do
do
266
do
do .
267
do
do
268
do
do
269
do
do
270
do
do
271
do
do
272
do
do
273
do
do
274
do
"do
275
... .do
Worcester works (central). . .
do
276
do
277
do
Worcester works (north)
do
278
do
279
do
do
280
do
do ...
281
do
do
282
do
.... do
283
do
do
284
do
do . .
Schedules and statistical statements for the year 1902 of the American Tin Plate Co.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. H .
P. M. 12 .
General profit and loss account of American Tin Plate Co. lor year 1902.
Schedule of monthly shipments and sales to outside customers lor American Tin Plate
Co. for year 1902.
Schedules and statistical statements of Illinois Steel Co. for the year 1902.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 13..
P. M
General profit and loss account of Illinois Steel Co. for year 1902.
Sheet 1, summary of shipments and sales; sheet 2, schedule of monthly shipments to
subsidiary companies; sheets 3, 4, and 6, schedule of monthly sales to outside cus'
tomers— for nUnois Steel Co. for year 1902.
4434
UNITED STATES STEEL COKPOEATION.
Schedules and statistical statements of transportation companies for the year 1902.
[Returned Feb. 18, 1910.)
No.
P. T.3
Description.
General profit and loss account for year 1902 ol the following companies: The Duluth &
Iron Range R. R. Co., Duluth, Missabe & Northern Ry. Co., Elgin, Joliet & Eastern
Ry. Co., Chicago, Lake Shore & Eastern Ry. Co., Bessemer & Lake Erie E. E. Co.,
Union R. R. Co.
Schedule of mills' cost sheets for the year 1903.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
285
American Sheet & Tin Plate Co
VandergriJt-ApoUo works. .. .
.. ..do
Acid open-hearth ingots.
287
do
do
Black sheets
288
do
do
Galvanized sheets.
otfq
.do
Acid open-hearth ingots.
Eun out plate.
Hammered blooms
290
do
do
291
do
do
01)9
do
do...;
Sheet bars.
293
do
do
Black plates.
Black and charcoal sheet.
oq^
do
do
295
do
do
Hammered sheets.
''qpi
do . ...
997
.do
Wellsville works
oqtj
do
.. ..do
Black sheets.
9qq
..do
do
Polished sheets.
snn
do
Struthers works
Black sheets.
sni
.do
.^Etna-Standard works
.do
Black plates.
Black sheets.
^n")
do
ini
.do
Do.
^01
do
.do
Galvanized sheets.
Wi
do.
306
do
.do
Galvanized sheets.
107
do
Piqua works ,
..do
Sheet bars.
308
do
Black sheets.
100
do
Do.
do
Black plate and tin plate.
Do.
311
do
Anderson works
do
Black plate.
Black plate and tin plate.
Do.
313
do
Chester works
314
do . -.
Prftspj^nt wnrlrs
do
Do.
316
do
■Rnmhert wnrVfi. .
Do.
317
do - -.
La Belle works . .
Do
Do.
319
do
Monongahela works
Do
do
Do.
321
do
National works
Do
322
do
New Castle works
Do
Do
324
do
Pittsburgh works
Do
325
do
Sharon works
Do
do
Do
327
do
Star works
Do
328
do
United States works
Do
Schedule of mill-cost sheets for the year 1902.
[Returned Jan. 29, 1910.]
.No.
Company.
Department.
Product,
349
American Sheet & Tin Plate Co
do
3'in
do
Sheet bars.
Black sheets.
351
do
do
UNITED STATES STEEL COKPOEATION. 4435
Schedules and statistical statements of Federal Steel Cb. for year 1902.
CRetumed Feb. 18, 1910.]
No.
Description.
P. U.S. 3.
General profit and loss account of Federal Steel Co. tor year 1902.
Schedules and statistical statements of the Carnegie Co. for year 1902.
[Returned Feb. 18, 1910.]
No.
Description.
P. U.S. 4....
P. T. 4
General profit and loss account of the Carnegie Co. for year 1902.
General profit and loss account for year 1902 of the following companies: Northern Liber-
ties Ry. Co.; Pittsburg & Ohio Valley Ry. Co.; Newburg & South Shore Hy. Co.;
Waukegan & Mississippi Valley Ry. Co.; Elwood, Anderson & Lapel R. R. Co.; Minne-
sota Dock Co.; Youghiogheny Northern Ry. Co.; South West Connecting Ry. Co.;
Etna & Montrose R. R.Co.; McKeesport Connecting Ry. Co.; Berwood & Wheeling
Connecting Ry. Co.; Johnsto^vn & Stony Creek Ry. Co.
Schedules and statistical statements of miscellaneous companies for year 1902.
[Returned Feb. 19, 1910.]
Description.
P. Misc. 1.
General profit and loss account for year 1902 of the following companies: Carnegie Natural
Gas Co., Union Supply Co., The United Supply Co., Lake Erie Supply Co., American
Supply Co., Youghiogheny Water Co., Mount Pleasant Water Co., Trotter Water Co.,
Huron Water Co., Standard Water Co., Carnegie Land Co., Conneaut Land Co., Ameri-
can Land Co., Pittsburg Limestone Co., Edgar Zinc Co., Standard Supply Co.
Schedules and statisticals statement for the year 1902.
[Returned Feb. 17, 1910.]
No.
P.M. 17
P.M. 18
Description.
General profit and loss account of Shelby Steel Tube Co. for year 1902.
Schedule of monthly sales to outside customers and shipments to subsidiary compa-
nies for Shelby Steel Tube Co. for year 1902.
Schedules and statistical statements of American Steel & Wire Co. for year 1902.
[Returned Feb. 17, 1910.]
No.
P. M. 15.,
P.M. 16.,
Description.
General profit and loss account of American Steel & Wire Co. for year 1902.
Sheet 1, summary of shipments and Mjles; sheet 2, schedule of monthly shipments to sub-
sidiary companies; sheets 3, 4, 5, 0,'5K6, and 9, schedule of monthly sales to outside cus-
tomers, for American Steel & "^ ire Co. for year 1902.
4436
TJNITBD STATES STEEL COEPOEATION.
Schedule of mill cost sheets for the year 190S.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
TX»
Carnegie Steel Co
Edgar Thomson works
do
Bessemer iron.
v^n
Spiegel.
Ferromanganese.
331
do
...do
1^9
do
do
Bail ingots, Bessemer.
333
do
. .do
Blooms.
^M
do
do
Kails, No. 1 miU.
335
do
.do
Rails, No. 2 mill.
S'lfi
.do.
Bessemer iron.
337
do
...do
Basic iron.
11R
.do
do
Billet ingots, Bessemer.
lit
do
..do
Open-hearth basic ingots.
40-inch blooming mill.
S4n
. .do
do
W
do
...do
21-inch large billets.
342
do
do
21-inch sheet bars.
141
do
do
21-inch small billets.
344
do
do
21-inch spUce bar shapes.
14'i
.do. ... .
do
16-inch small billets.
346
do
do
14-inch small billets.
147
.do
do
13-inch merchant bars.
14 S
do
.do
10-inch merchant bars.
349
do
do
SpUce bars.
IW
do
351
do
do
Spiegel.
Ferromanganese.
1')'>
..do
do
I'll
do
Carrie works
Basic iron.
1'i4
...do
Billet ingots, Bessemer.
1'i'i
do
...do
Open-hearth basic Ingots, No. 1 plant
Tifi
....do
do
(ordinary process).
Open-hearth basic ingots, No. 2 plant
I'i?
do
do
(ordinary process).
Open-hearth basic ingots, No. plant
(Monell process).
Open-hearth basic ingots, No. SIplant
118
.do.
do
IW
do
do
(ordinary process).
Open-hearth basic ingots, No. 3 pltot
(Monell process).
40-inch blooming mill-blooms.
40-inch blooming mill unfinished shape.
38-inch blooming mill.
ifin
do.
do
1B1
do
do
ifi''
do
do
ifii
do
do
164
..do.
...do
33-inch clogging mill.
3fili
do
do
166
....do
do
33-in(* structural shape mill.
Do.
167
do
do
16S
do '.
do
169
..do -. .
. ...do
30-inch slabbing mill.
32-iuch slabbing mill.
128-inch sheared plate mill.
119-inch sheared plate mill.
48-ineh universal plate mill.
42-inch universal plate mill.
Axles forged only.
Axles turned on W. S. & J.
376
do
do
171
do
....do
17''
do
do
171
do
do
174
.do.
do
375
do
176
do
do
do
377
do
Schedules and statistical statements of National Tube Co. for year 1902.
fRetumed Feb. 17, 1910.]
No.
P. M. 19
P. M.20
General profit and loss account of National Tube Co. for year 1902.
Sheet 1, summary of shipments and sales; sheet 2, schedule of monthly shipments to
subsidiary companies; sheet 3,^ schedule of monthly sales to outside customers for
National Tube Co. for year 1908?
TJNITED STATES STEEL COEPOEATION.
4437
Schedule of mill cost sheets for the year 190S.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
37,S
Carnegie Steel Co
Isabella Works
do
!)7<»
do
Basic iron.
.ssn
do
Lower Union Works, Pitts-
tiurgh.
do
3S1
do
12-inch mill, merchant bars
as?.
do
do
3S.a
do
do
72-rnch mill, sheared plates.
8-inch mill, merchant products.
S-inch mill, splice bar shapes.
12-incIi mill, merchant products.
12-inch mill, splice bar shapes.
17-inch mill, angles.
18-inch mill, merchant products.
18-inch mill, bar splice shapes.
20-inch mill, merchant products.
No. 1 universal plate mill.
No. 2 universal plate mill.
Splice bars.
.■W4
do
Upper Union Works, Pitts-
Durgji.
do
SS.I
do
3Sfi
do
do
387
do
do
3S8
-,...do
do
389
do
do
390
do
do
391
do
do
39?
do
do
393
do
do
394
do
do
39.'!
do
3915
do
do
Billet ingots, Bessemer.
Rail ingots, Bessemer.
Blooms.
397
do
.... do
398
do
399
do
do
4nn
do
do
23-ineh mill, large billets.
491
do
do
23-inch mill, sheet bars
4n?
do
... do
493
do
494
.... do
49.1
do
do
Blooms.
4nri
do
do
Sheet bars.
497
do
Mingo Works
Bessemer iron.
408
409
do
do
410
... do .
do
Sheet bars.
411
do
.... do
10-inch mill, merchant products.
Bessemer iron.
41?
. . -do
do
B ellaire Works
413
do.:
414
do
Blooms.
41 ."i
do
do
410
.... do
Columliius Works
Bessemer iron.
417
do
do
Billet ingots, Bessemer.
418
do
Blooms.
419
do
Sharon Works
Basic iron.
4?0
.... do
do
Open-hearth basic ingots.
Blooms.
4''1
do
do
4??
Niles Works
4?.3
do
Do.
494
South Sharon Works
do
Basic iron.
4?5
do
Open-hearth basic ingots.
Blooms.
4?ri
.do
do
4?7
do
do
Universal plates.
4?R
do
Painter works
8-inch mill. No. 6, merchant products.
4W
..do
do
8-inch mUl, No. 7, merchant products.
430
do
8-inch mill. No. 8, merchant products.
431
. do
....do
8-inch mill. No. 9, merchant products.
43?
do
9-inch mill, No. 3, merchant products.
433
...do
....do
10-lnch mill, No. 2, merchant products.
434
do
16-inch mill. No. 1, merchant products.
43,')
..do
Clark works
8-mch mill. No. 2, merchant products.
43fi
do .. .
9-inch mUl, No. 4, merchant products.
437
..do
do
10-inch mill. No. 5, merchant products.
438
do
12-inch mill, No. 6, merchant products.
4,39
. .do
....do
20-inch mill. No. 6, merchant products.
449
Muck bar.
441
.do
;do
S-inch mUl, No. 1, merchant products.
44?
do
do
8-inch mill, No. 1, merchant products.
443
do .
do
IMnch mlU, No. 4, merchant products.
444
do
do
16-inch mill, No. 3, merchant products.
44.';
do
Monessen works
8-inch mill. No. 1, merchant products.
44«
.... do
.... do
10-20-inch mill, No. 2, merchant prod-
447
do
ucts.
Muck bar (old mill).
448
.do . .
....do
Muck bar (new mill).
449
do
do
8-inch mill. No. 1, merchant products.
4,'in
do
do
10-inch mill, No. 3, merchant products
4,S1
.do
do
16-inch mill, No. 4, merchant products.
4"!?
do
4'i3
do
.. .do
8-inch mill, No. 1, merchant products.
4.'i4
do
do
10-inch mill. No. 2, merchant products.
4438
TJNITED STATES STEEL COEPOKATION.
Schedule of mill cost sheets for the year 1903 — Continued.
No.
Company.
Department.
Product.
4'i'i
Carnegie Steel Co
Upper Union Youngstown
works.
do
7-incli and S-lnch mill, merchant prod-
4'ifi
....do
ucts.
S-inch mill, No. 3, merchant products.
■CiT
do
. .do
S-inch mill. No. 5, merchant products.
4SR
do
do
10-inch mill. No. 4, merchant products.
•tw
do
do
10-inch mill. No. 7, merchant products.
460
do
do
do
10-inch milli No. 7, merchant products.
4«1
Lower Union Youngstown
works.
do
Muck bar, No. 2 mill.
4ft?
. .do
Muck bar, No. 3 miU.
4fi'i
do
do
7-inch mill, No. 2, merchant products.
4R4
do
do
W<^
do
do
466
do
do. .
10-lnoh mill. No. 6, merchant products.
16-lnoh mill, No. 7, merchant products.
20-inch mill. No. 2, merchant products.
4fi7
.. ..do
...do
4ftn
do
Warren works
4fW
do
470
.do
. do
8-inch mill, No. 2, merchant products.
471
do
do
Schedules and statistical statements for the year 1902.
[Returned Feb. 17, 1910.]
No.
Description.
P.M. 21..
P. M. 22..
fleneral profit and loss account ol Carnegie Steel Co. for year 1902.
Sheet 1, summary of shipments and sales; sheet 2, schedule of monthly shipments to
subsidiary companies; sheets 3-7, inclusive, schedule of monthly sales to outside cus-
tomers for Carnegie Steel Co. for year 1902.
Book No. 3.
Schedule of mill cost sheets for the year 1903.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
47?
Shelby Steel Tube Co
do
Greenville works
Round billets 20-lnch mill.
473
do
Piercing billets.
Rolling tubes.
474
....do
. do
47S
do
do
47fi
....do
do
477
do
Piercing bUlets.
Rolling tubes.
478
do
do
479
do
do
4S0
do
do
481
do
Piercing billets.
Rolling tubes.
3S?
do
do .
4S.'!
do
do
484
do
do
47S
National Tube Co
United States seamless
works.
.... do
Piercing bUleta.
Rolling tubes.
47fi
do
477
do
do
478
do
.... do
479
do
do
Miscellaneous cylindrical goods.
Piercmg billets.
Rolling tubes.
480
do
Standard works
491
do
do
493
do
do
493
do
do
UNITED STATES STEEL CORPORATION.
4439
Schedule and statistical statements covering operations of American Bridge Co. properties
for the year 1902 as enumerated in schedule annexed hereto .
[Eetumed Feb. 17, 1910.]
No.
Description.
P.M. 23
P.M. 24
Combined general profit and loss account oJ American Bridge Co. (New Jersey), American
Bridge Co. (New York), A. & P. Roberts Co., Empire Bridge Co., and the Koken
Iron Works for the year 1902.
Schedule of monthly shipments of shapes and bars produced on the 23, 20, and 12 inch
mills at the Pencoyd works, for year 1902.
Schedule and statistical statements covering operations for the year 190S of the companies
as enumerated in schedule annexed hereto.
[Returned Feb. 17, 1910.]
No.
Description.
P. T. 6....
P. T. 6....
Sheet 1, general profit and loss account of Pittsburgh Steamship Co. for year 1903; sheet 2,
schedule of operations, expenses, and statistics of Pittsburgh Steamship Co. for year
1903.
General profit and loss account of Pittsburgh & Conneaut Dock Co. for year 1903.
[Returned Feb. 18, 1910.]
P.U. S. 5.
P.U. S. 6.
P. V. S. 7.
General profit and loss account of United States Steel Corporation for year 1903.
Classified statement of administrative and general expenses of United States Steel Cor-
poration for year 1903.
General profit and loss account of Federal Steel Co. for year 1903.
Schedule of mill cost sheets for the year 1902.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
352
American Steel & Wire Co. . .
do
Newburgh works .
Barbed and twisted fence
'^'^'^
'^M
do
do
356
do
H. P. works
Wire nails.
^W
do
Do.
357
do
Waukegan works
Do.
358
do
do ".
Barbed and twisted fence.
359
do
Bluff Street works
Do.
SfiO
do
^fil
do
do
362
do
Do Kalb works
Wire nails.
do
do
364
do
■R.O(>lfd?i.lft -worVs . . , .
Wire nails.
?fi5
-do
do
366
do
Anderson works
^67
do
do
368
do
South side works
Wire nails.
do
do
370
do
Rankin works
Wire nails.
371
do
..do
Barbed and twisted fence.
372
do
Braddock works
Wire nails.
do
Do.
374
do
do
Barbed and twisted fence.
V^
do
Worcester works (south}
Worcester works (north)
Do.
376
do
Wire nails.
4440
UNITED STATES STEEL. COEPOEATION.
Schedule of mill cost sheets for year 190S.
[Returned Jan. 29, 1910.]
No.
Company.
Department.
Product.
4Q4
American Steel & Wire Co.. .
do
Newburgh works
Barbed and twisted fence.
4<(S
49R
do
.... do
Barbed and twisted fence.
4P7
do
H. P. works
Wire naUs.
4qR
do
..do . ...
Tacks.
499
do
son
do
Do.
fini
do
do
Barbed and twisted fence.
fm.
do
Scott Street works
Wire nails.
fm
do
do
sn4
do
De Kalb works
Wire nails.
sn'i
do
do
snfi
do
Wire nails.
iW?
do
do
sns
do
Wire nails.
Hn
do
do
hV)
do
South Side works
Wire nails.
511
do
do
'il''
do
Rankin works
Do.
f)13
do
do
"114
.do
"Rrftddnf^V wnrlrs
Do.
515
do
Do.
51 fi
. do
do
517
do
Wire nails.
51 R
do
do
519
do
Wire nails.
•vn
do
do
•sn
Worcester works (south)
Worcester works (north)
Do.
5??
do
Schedule of mill cost sheets for the year 1902.
[Returned January 29, 1910.]
No.
Company.
Department.
Product.
196*
Carnegie Steel Co
Duquesne works
21-inch mill large billets.
201
Carnegie Steel Co. (corrected)
Schedule of iron-ore mine cost sheets for year 190S.
[Returned February 17, 1910.]
No.
Name of mine.
No.
Name of mine.
0- 1
Bessie.
0-23
Soudan.
O- 2
Hartford.
0-24
Zenith.
0- 3
Lake Superior Hard.
0-25
Mountain Iron.
0-4
Lake Superior Soft.
0-26
Virginia.
0-5
Queen.
0-27
St. Clair.
0-6
Negaunee.
0-28
Genoa.
0- 7
Winthrop.
0-29
Bayal.
0-8
Volunteer.
O-30
Clark.
0-9
Aragon.
0-31
Chisholm.
O-IO
Chapin.
0-32
Sharon.
0-H
Columbia.
0-33
Spruce.
0-12
Cundy.
0-34
Adams.
0-13
Iron Ridge.
Mansfield.
0-36
Sellers.
0-14
0-36
0-15
Michigan.
0-37
Pillsbury.
0-16
Riverton.
0-38
HuU.
0-17
Atlantic.
0-39
Glen.
0-18
Chicago.
O-40
Burt.
0-19
Norrie-Aurora.
0-41
Day.
O-20
Tilden.
0-42
Stephens.
Dufuth.
0-21
Pioneer.
0-43
0-22 Savoy.
UNITED STATES STEEL CORPORATION.
4441
Schedule and statistical statements for the year 190S of iron-ore mining companies, as
enumerated in schedule annexed hereto.
[Returned February 19, 1910.]
No.
Description.
P. 0.3
P. 0.4
Combined general profit and loss account for all iron-ore mining companies tor year 1903;
also P. O. 3, sheet 2, and 0. O. 3, sheet 3, received June 26.
Sheets 1, 2^ 3, 4, 5, 6, 7, schedules showing deliTeries of iron ore by sundry iron-ore mining
compames for year 1903.
Schedules and statistical statements for the year 1903.
[Returned February 18, 1910.]
No.
Description.
P. T. 7.
P. T.8..
P. C. 5.
P.O. 6...
General profit and loss account for year 1903 of the following companies: The Duluth &
Iron Range R. R. Co.; Duluth, Missabe & Northern Ry. Co.; Etein, Joliet & Eastern
Ry. Co.; Chicago, Lake Shore & Eastern Ry. Co.; Bessemer & Lake Erie R. R. Co.;
Union R. R. Co.
General profit and loss account for year 1903 of the following companies: Youghiogheny
Northern Ry. Co.; South West Connecting Ry. Co.; Etna & Montrose R. R. Co.;
Donora Southern R. R. Co.; McKeesport Connecting Ry. Co.; Benwood & Wheeling
Connecting Ry. Co.; Johnstown & Stony Creek Ry. Co.; Northern Liberties Ry. Co.;
Pittsburgh & Ohio Valley Ry. Co.; Newburg & South Shore Ry. Co.; Waukegan &
Mississippi Valley Ry. Co.; Elwood, Anderson & Lapelle R. R. Co.; Minnesota Dock Co.
Generalproflt and loss account for year 1903 of the following companies: i H. C. Frlck
Coke Co., South West Connellsville Coke Co., Continental Coke Co., American Coke Co.,
Ingleside Coal Co., National Mining Co., United States Coal & Coke Co., Sharon Coke
Co., Hostetter-Connellsville Coke Co., Sharon Coal & Limestone Co., Juniata Coke Co.
Details of miscellaneous wofit and loss for year 1903 of the following companies: > H. C.
Frick Coke Co., South West Connellsville Coke Co., Continental Coke Co., American
Coke Co., National Mining Co., United States Coal & Coke Co., Sharon Coke Co.
> Returned February 19, 1910.
Schedule of iron-ore mine cost sheets for 1903.
[Returned February 17, 1910.]
No.
Name of mine.
0-44
Chandler.
Schedule of cost sheets for the year 190S.
[Returned February 19, 1910.]
No.
Company.
Department.
Product.
C-4H C
Frick Coke Co
All plants
Coke.
C-S
United States Coal & Coke Co^
do
/ Do.
iCoal.
Do.
Mine No. 1
C-6
Soutji Sharon by-product
plant.
All plants
By-product coke.
C-7
Coal.
C-7
do
Do.
C-9
.do
Do.
4442
UNITED STATES STEEL COEPOEATION.
Schedules and statistical statements covering operations for the year 190S for the several
companies and departments as enumerated in schedule annexed hereto.
[Eetumed February 19, 1910.]
No.
Description.
P. C.6..
Sheet 2, details by months of shipments of coke and coal during 1903 by H. C. Frick Coke
Co.; sheet 3, details by months a! shipments of coal during 1903 by American Coke Co.,
South West ConnellsTille Coke Co., and National Mining Co.; sheet 4, details by
months of shipments of coke and coal during 1903 by United States Coal & Coke Co.;
sheet 5, details by months of shipments of coke and coal during 1903 by Sharon Coke
Co.; sheet 6, details by months of shipments of coal during 1903 by Ingleside Coal Co.
Schedules of mill cost sheets for the year 1904.
[Returned February 1, 1910.]
No.
Company.
Department.
Product.
1
Illinois Steel Co
North works
Spiegel.
?
do.
Bessemer iron
3
do
do ..
4
do.
do
Spiegel.
Bessemer rail ingots
5
do
do .
H
do
do
Bessemer billet ingots.
0. H. basic ingots, plant No. 1.
0. H. basic ingots, plant No. 2.
7
8
do
do
do
do
do
do
in
do. .
. .do ....
Light rails.
11
do
do
1'-
do
do
Large billets, slab mill.
n
do.
.do .. .
Plate slabs, slab mill.
14
do
do
15
.do.
joliet works
Bessemer iron.
in
do
. .do
Bessemer billet ingots.
17
do
do
IS
.do
do
Small billets.
19
do
do
Bods, No. 1 and 2 mill.
'>n
.do.
.do .
Merchant steel, Morgan continuous
21
.do
.do .. .
mill. In. IMMkWIII*'' " B
Merchant steel, 12 and 18 inch mill-
■y>
do
do
Long tie-plate bars, 18-inch mill.
Wolnaupter base plates, 18-ineh mill.
■>3
.do
..do... .
'4
do -
do
Angle splice bars.
Continuous rail joints.
25
.do
- ..do. ...
?fi
....do
do
Tie-plates.
"Womaupter rail joints.
Eaihoad track spikes.
Track bolts.
27
28
do
.do.
do
do
oq
...do
do... .
30
.do.
do
Nuts
31
....do
32
33
do
do
do
do
Malleable Bessemer and foundry Iron.
Merchant steel, 8-tnch mill.
Merchant steel, 9-inch mill No 1
34
.do
do
3'i
do
do
Merchant steel, 9-inch mill No. 2.
3(1
.do
.do
Merchant steel, 12-inch mill.
37
do
do
33
..do
do .
Structural angles, 21-inch mill.
Partly finished continuous rail joints,
21-inch mUl.
Partly finished Bonzano joints, 21-inch
Heavy rails, 22-lnch light-rail mill.
Light rails, 22-inch light-rail mill.
Finished spUce and angle bars.
Finished continuous rail joints.
Finished Bonzano joints.
Raih-oad track spikes.
30
do.
do
40
.do
do
41
do
.do ...
4?
do
do
43
do
..do
44
. .do
do
4'i
do
.do
4R
do
do ,
47
The National Tube Co
....do
4R
.do
Bessemer rail ingots.
Bessemer billet mgots.
No. 1 blooming mill.
No. 2 blooming miU.
49
■iO
do
do
do
.do .
■il
do
do
V>
do
do..
S3
do
do
'>4
do
do
Splice bars.
Mpfallip tipe
55
.do
.do
'sa
Pencoyd works
O. H. basic ingots.
36-inch blooming mill.
Structural shapes, 23-28-inch mill.
Structural shai)es, 20-23-inch mill.
Structural shapes, 12-inch mill.
67
.do
. -.do
■iS
.do
do
"iO
do
. .do. .
no
..do
do
UNITED STATES STEEL CORPORATION.
4443
Schedules and statistical statements for the year 1903, covering operations of miscellaneous
companies.
[Returned Febraary 19, 1910.]
No.
Description.
P. Misc. 2.
General profit and loss account for year 1903 of the following companies: Carnegie Natural
Gas Co., Union Supply Co., United Supply Coy Lake Erie Supply Co., Redstone and
Fairchancc Water Cos., Youghlogheny '\Vater Co., Mount Pleasant Water Co., Tritter
Water Co., Huron Water Co., Standard Water Co., Carnegie Land Co., Conneaut Land
Co., American Land Co., Girard Land COy Pittsburgli Limestone Co., Edgar Zinc Co.,
Standard Supply Co., Coal & Limestone Co
Schedule and statistical statements for the year 1903, covering operations of ATnerican
Sheet Steel Co..
[Returned Feb. 17, 1910.)
No.
Description.
P. M. 25..
P. M. 26..
General profit and loss account of American Sheet Steel Co. tor the year 1903.
Summary of shipments and sales, schedule of monthly shipments to subsidiary com-
pany, schedule of monthly sales to outside customers, for American Sheet Steel Co.
for year 1903.
Schedules and statistical statements for the year 1903, covering operations of American
Tin Plate Co.
[Returned I eb. 19, 1910.]
No.
Description.
P.M. 27
P.M. 28
General profit and loss account of American Tin Plate Co. (including Sharon Tin Plate
Co.) for the year 1903.
Schedule of monthly shipments and sales to outside customers for American Tin Plate
Co. for year 1903.
Schedules and statistical statements for the year 1903, covering operations of the Lorain
Steel Co.
[Returned Feb. 19, 1910.)
No.
P.M. 29
P.M. 30
Description.
General profit and loss account of the Lorain Steel Co. for year 1903.
Summary of shipments and sales, schedule of monthly shipments to subsidiary com-
panies, schedule of monthly sales to outside customers, for the Lorain Steel Co. for
year 1903.
Schedules and statistical statements for the year 1902, covering operation of American
Bridge Co.
[Returned Feb. 17, 1910.]
No.
Description.
P.M. 31
Combined general profit and loss account of American Bridge Co., New Jersey; Ameri-
can Bridge Co., New Yort; A. & P. Roberts Co; Empire Bridge Co., and the Koken
Iron Works for year 1903.
4444
UNITED STATES STEEL CORPORATION.
Schedule of profit and loss sheets for the year 190^, relating to ore companies..
[Returned Feb. 19, 1910.]
No.
Description.
P. O. 1..
Sheet 1, combined general profit and loss account, all ore mining companies, 1902, revised;
sheet 2, distribution Oliver Iron Mining Co., 1902; sheet S, distribution Lake Superior
ConsoUdaied and others, 1902; sheet 4, distribution American Mining Co., 1902.
Schedule and statistical statements covering operations of Shelby Steel Tube Co. for the
year 1903.
[Returned Feb. 17, 1910.)
No.
Description.
P.M. 33...
P. M. 34...
General profit and loss account ol Shelby Steel Tube Co. for the year 1903.
Schedule ol monthly sales to outside customers and shipments to subsidiary companies
for Shelby Steel Tube Co. tor year 1903.
Schedule and statistical statements covering operations of Illinois Steel Co. for the year 190S.
r Returned Feb. 17, 1910.]
No.
Description.
P.M. 35....
P.M. 56....
General profit and loss account of minois Sieel Co. tor year 1903.
Sheet 1, summary of shipments and sales; sheet 2, schedule of monthly shipments to
subsidiary companies; sheets 3, 4, 5, schedule ol monthly shipments and sales to out-
side customers. — For Illinois Steel Co. for year 1903.
Schedule and statistical statements covering operations of the companies named for the
' year 1903 as enumerated.
[Returned Feb. 17, 1910.]
Description.
P. M. 39
General profit and loss account of National Tube Co. (including Pittsburgh Tube &
Metal Co. and National Tube Works Co.) for year 1903.
Sheet 1, summary of shipments and sales; sheet 2, schedule of monthly shipments to
subsidiary companies; sheet 3, schedule of monthly shipments and sales to outside
customers.— For National Tube Co. for year 1903.
General profit and loss account of Western Tube Co. for year 1903.
Schedule of mill cost sheets for the year 1904.
[Returned February 1, 1910.]
No.
Company.
Department.
Product.
01
National Tube Co
Bessemer iron.
Bessemer billet ingots.
35-ineh blooming mill.
Muck bar. No. 1 puddle mill.
Muck bar, No. 2 puddle mill.
Scrap bar. No. 2 puddle mill.
Refined plate metal.
Common plate metal.
Charcoal metal blooms.
Charcoal scrap blooms.
Charcoal metal bar. No. 1 mill.
Socket iron. No. 1 mill
Charcoal metal bar, No. 2 mill
Charcoal scrap bar, No. 2 mill.
Steel bar. No. 2 mill.
62
do
do
63
do
do
64
do
do
65
do
do..
66
do ^.
do
67
do *
do... .
6Sn
do
do
69
do
do
70
do ,
do .
71
do
... do
72
do
do..
73
do
do
74
do
do...
75
do
do
UNITED STATES STEEL COKPOEATION.
Schedule of mill cost sheets for the year 1904 — Continued.
4445
No.
Company.
Department.
Product.
76
Sheared steel skelp, No. 1 mill.
Sheared iron skelp, No. 1 mill.
Grooved steel skelp, No. 2 mill.
Grooved iron skelp. No. 2 mill.
77
do
do
7R
do
do
70
do
..do
m
do
do
HI
do
do ;..
Grooved steel skelp. No. 3 mill.
Grooved Iron skelp, No. 3 mill.
Grooved steel skelp, No. 4 mill.
Grooved iron skelp. No. 4 mill.
Grooved steel skelp, No. 5 mill.
Grooved iron skelp, No. 5 mill.
Bent skelp, steel.
Bent skelp, iron.
Welded skelp, steel.
Welded skelp, iron.
Finished tubular goods, steel.
Finished tubular goods iron
^9
do
do
m
...do
do
do ....
do
S'i
do
do
SB
do
do
87
do
National Works (lap mill) . . .
<fS
do
H'^
do - .
.. do
90
....do
do
1)1
do
do
()n
do
do
tS
do . . - *.
do
Reflnished plain-end steel tubular
goods after galvanizing.
Refinished plain-end and iron tubular
goods after galvanizing.
Welded skelp, steel.
Welded skelp, iron.
Finished tubular goods, steel.
Finished tubular goods, iroiu
Refinished plain-end steel tubular
goods after galvanizing.
Reflnished plain-end iron tubular
goods after galvanizing.
Bent socket forgings.
Welded socket forgings.
01
do ...
O*)
National Works (butt mill)..
do „
Vi
do
do
do
9S
do
do
44
do
do
inn
do
do
ini
do
109
do
do
in?
do
10-1
do
. do
Finished galvanized sockets.
Galvanizing cost.
Split sockets.
Wi
.do
do
10f>
do
do
in7
do
do ...
Grooved iron skelp, No. 1 mill.
Socket iron, No, 1 mill.
inn
do
do
iin
do
do
Grooved steel skelp, No. 2 mill.
Grooved iron skelp. No. 2 mill.
111
...do
ii'
. ...do
do
Socket steel, No. 2 mill.
in
....do
Socket iron. No. 2 mill.
1H
....do
Boston rolling mills (includ-
ing Elba).
Continental department roll-
ing mills.
Tool iron. No. 2 mill.
ll'i
do
Iin
do
Scrap bar.
Grooved steel skelp. No. 1 mill.
117
do
do
lis
do
do
114
. do
Socket iron. No. 1 mill.
i'>n
. .do
do
I'll
do
.. ..do
Grooved iron skelp, No. 2 mill.
lOT
do
do
PI
do
...do
Steel bUIets, No. 2 mill.
19/)
do
do
Grooved steel skelp, No. 3 mill.
Grooved iron skelp. No. 3 mill.
1?S
do
....do
I'fi
do
do
Socket iron, No. 3 mill.
197
....do
Steel billets. No. 3 mill.
^'>H
do
do
Iron billets, No. 3 mill.
^'>t
do
Thread iron, No. 3 mill.
nn
do
do
Thread protector steel, No. 3 mill.
ni
....do
Tool steel, No. 3 mill.
n?
do r
do
Tool iron. No. 3 mill.
^xt
do
Continental Department
RoUing MiUs (lap mills).
Bent skelp, steel.
114
do
Bent skelp, iron.
Welded skelp, steel.
111
do
do
iifi
... do
do
Welded skelp, iron.
1?7
do
..do
Finished tubular goods, steel.
1?S
do
Finished tubular goods, iron.
1S4
do
Continental Department
Rolling Mills (butt miU).
do
Welded skelp, steel.
iin
do
Welded skelp, iron.
111
do
....do ;
Finished Inibular goods, steel.
I'l''
do
do
141
do
Continental Department
Rolling Mills.
do
Bent socket forgings.
do
Welded socket forgings.
Finished black sockets.
l-fi
do
do
do
do
Split sockets.
117
do
Republic department
do
do
Scrap bar. No. 1 mill.
Muck bar, No. 2 mill.
144
:!.;!do
do
31572— No. 53, pt. 3—12 ^9
4446
UNITED STATES STEEL COEPOEATION.
Schedule of mill cost sheets for the year 1904 — Continued.
Xo
1
Company.
Department.
Product.
150
National Tube Go
Republic department
l.il
do
l.W
do
do
Sheared skelp, iron. No. 1 mill.
Sheared steel plates. No 1 mill
153
do ;....
do
154
do
do
l.W
do
do
Grooved skelp, iron, No. 2 mill.
Grooved skelp, steel. No. 3 mill.
Grooved skelp, iron, Xo. 3 mill.
Bent skelp, steel.
Bent skelp, iron.
Welded skelp, steel.
Welded skelp, iron.
Finished tubular goods, steel.
Finished tubular goods, iron.
ISfi
do
do
1.17
do
do
168
do
Pennsylvania department
(lap mill).
1.™
do
160
do
do
Ifil
do
do .. .
162
163
do
do
do
do
164
do
Pennsylvania department .
Ifi.l
do
Welded socket lorgings.
Finished black .sffckets.
Split sockets.
Bessemer iron.
Bessemer billet ingots.
Blooming mill.
Grooved skelp, steel. No. 1 mill.
Grooved skelp, steel. No. 2 mill.
Grooved skelp, steel. No. 3 mill
Grooved skelp, steel. No. 4 mill.
Grooved skelp, steel. No. 5 mill.
Bent steel skelp.
Welded steel skelp.
Finished steel, tubular goods.
Refinished steel, plain-end tubular
product after galvanizing.
Welded steel skelp.
Finished steel tubular goods.
Refinished steel, plam-end tubular
product after galvanizing.
Bent socket forgmgs.
Welded socket forgings.
Finished black sockets.
Finished galvanized sockets.
SpUt sockets.
Galvanizing cost.
Bent skelp, steel.
Bent skelp, iron.
Welded skelp, steel.
Welded skelp, iron.
Finished tubular goods, steel.
Finished tubular goods, iron.
Refinished steel, plam-end tubular
goods after galvamzing.
Refinished iron, plain-end tubular
goods after galvamzing.
Refinished steel, plain-end tubular
goods after galvamzing.
Welded skelp, steel.
Welded skelp, iron.
Finished tubular goods, steel.
Finished tubular goods, iron.
Bent socket forgings.
Welded socket forgings.
Finished black sockets.
Finished galvanized sockets.
Split sockets.
Galvanizing cost.
Bent iron skelp.
Welded iron skelp.
Finished iron tubular goods.
Bent steel skelp.
Bent iron skelp.
Welded steel skelp.
Welded iron skelp.
Finished steel tubular goods.
Fmished iron tubular goods.
Bent socket forgings
Welded socket forgings.
Fmlshed black sockets.
Split sockets.
Bent steel skelp.
Bent iron skelp.
166
do
do
167
do
do
168
169
do
do
170
do
do
171
do
do
172
do
do
173
do
do
174
do
i?.";
do
do
176
do
Riverside works (lap mill) .
177
do
178
do
do ' '"
179
do
do
180
do
Riverside works (butt mill).
do
181
do
182
do
do
1S.S
do
do
184
do
do
186
do
do
1S6
do
do
187
do
do
188
do
do.
189
do
American department (lap
mill).
... do
190
do
191
do
do... .
192
do
do
193
do
do
do
194
do. .
195
do
do
196
do
do... .
197
do :
American department (butt
mill).
do...
198
do
199
do
do
200
do
do
201
do
do.
202
do
do
203
do
do.. .
204
do
do
206
do
do
206
....do
....do.
207
....do
....do
208
Allison department (lap
mill).
do
209
.-..do
210
211
...do
....do
..--do :;;;
Youngstown department
(1m) mill).
212
....do
213
....do
....do
214
....do....
215 .
....do
....do.
216 -
217 .
....do
....do
--.-do ;;
....do...
218 .
....do
....do
219 .
...do
.-..do
2W .
....do
....do..
221 .
....do
Chester department "(lap'
mill).
....do
222 .
....do 1.
UNITED STATES STEEL GOEPOEATION.
Schedule of mill cost sheets for the year 1904 — Continued.
4447
No.
Company.
Department.
Product.
VS
National Tube Co
Cliester department (lap
mill).
Welded steel skelp.
Welded iron skelp.
Finished steel tubular goods.
Finished iron tubular goods.
Welded socket forgings.
224
....do
225
..do... .
. . do
326
....do
do
227
do
. -do
228
....do
do
229
do . .
do
Split sockets.
Bent steel skelp.
Bent iron skelp.
Welded steel skelp.
Welded iron skelp,
Finished steel tubular goods.
Finished iron tubular goods.
230
...do
Syracuse department (lap
mill).
do
231
do
232
.do
.do
233
do
do . ...
234
235
do
.do . -
do
do .
236
American Steel & Wire Co...
.do. . ... .
237
Do.
238
do
Do.
239
..do
Bessemer billet ingots.
Open-hearth basic mgots.
240
.do
do
241
. ..do
.do
242
do . -
do
No. 2 blooming mill.
243
do
...do
244
.do
do
245
do
do . ...
Sheets and plates, 54 and 60 inch mill.
246
.do.
247
do
do
Basic iron.
248
.do
.do
249
do
do
Open-hearth basic ingots.
Open-hearth acid ingots.
No. 1 blooming mill.
260
do
.do
251
do. . . .
do
252
do
do ...
35-inch blooming mill.
253
..do.
.do
254
do
do
Bright coarse wire, 8i and coarser.
Bright coarse wire, 8} to 13^.
Bright coarse wire, 13J and finer.
Garrett rod mill.
255
..do
.do
256
do
do
257
do
258
.do
do
Continuous mill, If-inch billets.
(Continuous mill, rods.
259
do
do
260
.do.
.do
Bright coarse wire, 8i and coarser.
Bright coarse wire, 8} to 13^.
Bright coarse wire, 13} and finer.
Garrett rod mill.
261
do
do
262
...do.
.do
263
do
Consolidated works
264
265
do
do
do
H. P. works
Bright coarse wire.
Garrett rod mill.
?66
do
• .do
Bright coarse wire.
267
do . .
268
Waukegan works ..
Continuous mill, IJ-inch billets, steel.
269
.do. . ..
do
Continuous mill, IJ-inch billets, copper.
270
do
do
Nos 1 and 2 continuous rod mill.
m
... .do-
.do
272
do
do
No. 3 continuous rod mill, copper.
?7a
.. .do
.do
274
do
do
Bright coarse wire, 81 and coarser.
Bright coarse wire, 8| to 13^.
Bright coarse wire, 13J and finer.
Copper coarse wire.
Bright coarse wire.
275
do.
.do
276
do
do
?77
... .do.
.do
?7R
do
Blufi Street works
279
do
Do.
280
do
De Kelb works
Do.
281
do
Do.
282
Anderson works
GaiTett rod mill.
?S3
do.
. ...do
Bright coarse wire.
284
do
KanJdn works
Garrett rod mill.
781
. ..do
..do
Bright coarse wire.
286
Braddock works
Garrett rod mill.
?S7
. do
..do
Bright coarse wire.
288
do
do
Tinplate bars.
Houghing rod mill l|-inch billets.
No. 1 continuous rod mill.
?8q
.do
290
do
n\
do
.do
No. 2 continuous rod mill.
29?
.. do.
...do
Bright coarse wire.
293
do
Donora works
Roughing rod mills, li-uich billets.
No. 1 continuous rod mill.
W4
do
....do
295
do
do
No. 2 continuous rod mill.
996
do
Bright coarse wire.
297
.. ..do
AUentown works (south)
do
Garrett rod mill.
?9R
do
Bright coarse wire.
299
. do
Worcester works (south)
do
Open-hearth basic ingots, new works.
300
Open-hearth basic ingots, special— new
301
do
do
works.
Open-hearth acid ingots, new works.
4448 UNITED STATES STEEL COBPOBATION.
Schedule of mill cost sheets for the year 1904— Continued.
No.
Company.
Department.
302
303
^0.1
American Steel & Wire Co. .
do
do
do
do
Worcester works (south) . . .
do
do
305
do
inn
do
307
do
do
do
.do
do
'iOS
do
SOQ
do
110
do
111
do
do
V
....do. . .
do . .
Sll
do
do
114
do .'
do
315
do
do . .
110
....do
do
317
do
.do
lis
.do.
do
11<)
....do
do
320
....do
do
do
322
do
do
323
do
1'>'1
.do
do
1'>'i
do
Worcester works (central). . .
do
.do. .
327
do
do
?■"(
. ..do
do
329
330
American Steel & Wire Co.
(April to December, In-
do ;
Worcester works (north)
. do . .
111
do
do
ll'
. ..d<5
. ..do ... . . . .
W
do
do
m
do
do
335
..do . . .
. . do
110
do
do
117
do
do
IIS
. ..do
do
IIQ
American Sheet & Tin Plate
Co.
do
Vandergrift works. . .
140
do
141
do
.. do
14?
do
do
141
do
144
do
. do
145
do
do
140
do
do ..
147
do
do
148
do
do
14<f
do
. . do .
IW
do
351
do
15?
do
Saltsburgh works
151
do
Aetna Standard works
.. ..do .
354
do
355
do
do
.150
do
Guernsey works
357
do
do
3,5S
do
359
do
do
300
do
New Philadelphia works
.. . do
301
do
302
do
303
do
do
304
do
do
SO.'i
do
Piqua works
360
do
do
307
do
do ...
308
do
do
309
do
do .
370
do
.... do
.171
do
Scottsdflle works
372
do
Old Meadow works
373
do
Struthers works
Product.
Open-hearth acid ingots, old works.
Blooming mill.
li-inch billets. No. 2 billet mill, flrst 9
months.
]J-inch steel billit, No. 2 bUIet mill,
last 3 months.
li-inch copper billets, No. 2 billet mill,
3 months.
Steel billets at merchant mill.
Charcoal billets at merchant charcoal
mill.
Steel billets at universal mill (Merchant
Flats).
Charcoal blooms.
Steel rods, No. 2 continuous mill.
Copper rods. No. 2 continuous mill.
Steel rods, No. 4 continuous mill.
Steel rods. No. 6 continuous mill.
Steel rods. No. 6 continuous mill.
Bright coarse common wire, 1/0 and
coarser.
Bnght coarser common wire, 1/0 to 8.
Bright coarse common wire, 9 to 14.
Bright coarse common wire, 16 to 20.
Bright coarse special wire, 1/0 and
coarser.
Bright coarse special wire, 1/0 to 8.
Bright coarse special wire, 9 to 14.
Bright coarse special wire, 15 to 20.
Copper coarse wire.
Bnght coarse common wire, 8 and
coarser.
Bright coarse common wire, 9 to 15.
Bright coarse common wire, 10 to 17.
Bright coarse common wire^ 18 to 20.
Bright coarse common wire, 8 and
coarser.
Bright coarse common wire, 9 to 15.
Bright coarse common wire, 16 to 17.
Bright coarse common wire, 18 to 20.
Goldsmith's bright coarse special wire.
Jackson's bright coarse special wire.
Mjdgley's bright coarse special wire.
Machine drawn coarse wire.
Coarse copper wire, 1/0 and coarser.
Coarse copper wire, finer than 1/0.
Open-hearth acid mgots.
Sheet bars.
Black sheets.
Galvanized ^eets.
Open-hearth acid ingots.
Eun out plate.
Hammered blooms.
Sheet bars.
Black sheets.
Black plates.
Hammered sheets.
Black sheets.
Do.
Do.
Do.
Black sheets and plates, jobbing mill.
Black sheets and plates, plate mul.
Black sheets.
Galvanized sheets.
Black sheets.
Galvanized sheets.
Black sheets.
Black sheets and plates.
Sheet bars.
Black sheets.
Polished sheets.
Muck bars, 9 muck bar (last 7 months.)
Scrap bar (last 7 months).
Muck bar sheets bar (last 7 months.)
Do.
Scrap bar-sheet bars (last 7 months.)
Black sheets.
Do.
Do.
Do.
UNITED STATES STEEL COEPOKATION.
Schedule of mill cost sheets for the year 1904 — Continued.
4449
Company.
American Sheet & Tin Plate
Co.
....do
do
do
do
do
do
do..,
do
.....do
do
do
do
do
....do
....do
....do
....do ...
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
...do
....do
....do
....do
....do
....do
....do
....do
....do
Carnegie Steel Co
do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do
....do :..
do
....do
....do
do
do
....do
....do
do
do
do
do
do
do
do
do
.do.
.do
.do
.do
.do..
-do..
-do.,
.do.
.do.
.do.
Department.
American works .
Anderson worlcs
Cambridge wor]£s
Chester works
Crescent worlis
Falcon works
Humbert works
La Belle works
Laughlin works
Monongahela works
Morewood works
National works
Newcastle works
Pennsylvania works
Pittsburgh works
Sharon works
Shenango works
Star works
United States works
American works
Anderson works
Cambridge works
Chester works
Crescent works
Falcon works
Humbert works
La Belle works
Laughlin works
Monongahela works
Morewood works
National works
Newcastle works
Pennsylvania works
Pittsburgh works
Sharon works
Shenango works
Star works
United States works
Edgar Thompson works. .
do
do
do
do
do
do
do
do
do
do
do
do
Duquesne works
do.
....do
....do
do
do
do
do
do
do
do
do
do
do
Lucy works.
.do.
.do.
Carrie works
Homestead works.
do
.do.
.do.
.do.
.do.
.do.
..do.
Product.
Black plate and tinplate (first 7
months.)
Do.
Black plate (only), first 7 months.
Black plate and tinplate , first 7 months.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Black plate and tinplate, first 5 months.
Do.
Black plate (only), last 6 months.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do,
Bessemer iron.
Basic iron.
Special Bessemer iron,
washed iron.
Speigel.
Ferro-manganese.
Do.
Bessemer rail ingots.
Bessemer billet ingots.
Blooming mill.
Bails, No. 1 mill.
Bails, No. 2 mill.
Small billets, No. 2 mill.
Bessemer iron.
Basic iron.
Bessemer billet ingots.
Open-hearth basic ingots.
40-inch blooming mill.
21-inch mill, large billets.
21-inch mill, small billets.
21-inch mill, sheet bars.
21-inch mill, spUce-bar shapes.
21-inch mill, small billets.
14-inch mill, small billets.
13-inch mill, merchant bars.
10-inch mill, merchant bars.
Splice bars.
Bessemer Iron.
Spiegel.
Ferro-manganese.
Basic iron.
Bessemer billet ingots.
Open-hearth basic ingots, No. 1 plant
(ordinary).
Open-hearth basic ingots. No. 2 plant
(ordinary).
Open-hearth basic ingots. No. 2 plant
(Monell).
Open-hearth basic ingots. No 3 plant
(ordinary).
Open-hearth basic ingots, No. 3 plant
(Monell).
40-inch mill, blooms.
38-inch blooming mill.
4450
UNITED STATES STEEL COKPOBATION.
Schedule of mill cost sheets for the year 1904 — Continued.
No.'
Company.
Department.
Product.
451
Cameeie Steel Co
Homestead works
28-inch blooming mill.
'1')''
do
do
33-inch cogging mill.
4'il 1
do
..do
Do.
4=>4 '
do
do
35-inch structural shape mill (beams
4iT 1
do.
.do
and channels).
33-inch structural shape mill (beams
1
456
do
do
and channels).
33-inch structural shape mill, ties.
4'i7
do.
.do
23-inch structural shape mill, angles.
4^
do
do
30-inch slabbing mill.
4W
.do.
..do
32-inch slabbing mill.
140-inch sheared plate mill.
tm
do
do
461 '
do
do
128-inch sheared plate mill.
46'' '
do.
.do
119-tnch sheared plate mill.
84-inch sheared plate mill.
48-inch universal plate mill.
46^
do
do
464
.do
...do
Ifi'i
do.
.do
466
do
do
10-inch merchant mill.
467
do.
'16S
do.
do
Axles, forged, locomotive driving.
469
do
do
Axles turned on W. S. & J.
470
do.
.do
471
do
do
Axles turned, locomotive driving.
47''
.do. . . . .
'\T^
do.
Lower Union works, Pitts-
burgh.
9-inch mill, bars.
m
.do
■17'i
do.
Lower Union works, Pitts-
burgh.
12-inch mill, bars.
476
do.
do
478
do
do
Pointed spring steel.
Forgings.
8-inch mill, merchant products.
12-inch mill, merchant products.
17-inch mill, angles ancfskelp.
18-inch mill, merchant products.
20-inch mill, merchant product.
471
.do
.do
48(1
Upper Union works, Pitts-
burgh.
4S1
.do
4as
do
do . . .
4S4
..do
. ..do
4S'i
do.
do
486
do
Universal plates, No. 1 mill.
Universal plates. No. 2 mill.
8-inch mill, splice-bar shapes.
12-inch mill, splice-bar shapes.
18-inch mill, splice-bar shapes.
20-inch mill, slabs.
4S7
.do
.do
48R
.do.
do . .
48q
....do
....do
4(tn
-do. . . . .
.do
4qi
do
do
4<»?
.. .do
491
.do. ..
do ..
Bessemer iron. '
444
.do
do
Open-hearth acid ingots (May to Decern-
Open hearth basic ingots (May to De-
cember).
40-inch, blooming mill (May to Decem-
ber).
28-inch, blooming mill (May to Decem-
ber).
4«5
do
....do
416
do
do
497
do
.do
498
do
499
....do
do
Bessemer billet ingots.
snn
do
do
flni
do
do
23-inch mill, large bUlets.
5(1?
. ..do
.do .. . .
sna
do
do
Continuous mill, small billets.
504
do
New Castle works
do
505
do. .
Bessemer billet ingots.
506
do
do
507
do
508
.. ..do .
Mingo works
509
do
Bessemer billet ingots.
Blooming mill.
510
do
.do
511
do
51?
do
. ..do... .
513
do
514
do
do
Bessemer billet ingots.
Blooming mill.
Sbftftt h9.r<i
515
do
do
516
.. ..do
do
517
do
51S
do
Open-hearth basic ingots.
Blooming mill,
Skelp and angles.
519
do
dp.. ..
5''n
do
To
5?1
do
do
5??
do
Niles works
523
do
South Sharon works
Basic iron.
UNITED STATES STEEL CORPOKATION.
Schedule of mill cost sheets for the year 1904 — Continued.
4451
No.
Company.
Department.
Product.
594
Camegie Steel Co
South Sharon works
do
Open-hearth basic ingots (regular).
Open-hearth basic ingots (Moneall).
Blooming mill.
8-inch mill, No. 6, merchant products.
8-inch mill. No. 7, cotton ties.
8-inch mill, No. 8, merchant products.
8-inch mill, No. 9, merchant products.
8-inch mill No 9 cotton ties
SW
do
B^fi
do
do
Siff
do
528
5W
do
do
do
do
53n
do
do
SSI
do
do
FiV
do
do
9-inch mill. No. 3, merchant products.
10-inch mill, No. 2, merchant products.
IG-inch miU No. 1, merchant products.
8-inch mill. No. 2, merchant products.
8-inch mill, No. 3. merchant products.
9-inch mill. No. 4, merchant products.
10-inch mill. No. 5, merchant products.
12-ineh mill. No. 6, merchant products.
20-inch mill. No. 7, merchant products.
533
S34
do
do
do
..do
'i'.'i
do
53fi
do
do
■ilT
do
do
•lis
...do
do
539
do
do
do
... .do
541
do
do
Ii4?
do
8-inGh mill, No. 1, merchant products.
8-inch mill. No. 2, merchant products.
8-inch mill. No. 2, splice bar, shapea.etc.
10-inch mill, No. 4, splice bar shapes,
etc.
10-lnch mill. No. 4, light rails.
10-inch mill, No. 4, merchant products.
16-inch mill. No. 3, angles and rails.
8-inch mill. No. 1, Hoops, etc.
10-20-inoh mill. No. 2, merchant prod-
ucts.
543
544
do
do
do
do
54'i
do
do ..
54fi
do
do
547
do
do ...
■148
.do
do
540
do
55(1
. .do
.. do
551
do
'55''
. .do. ...
. -do
553
do
do
10-inch mill, No. 2, hoops and skelp.
Muck bar
554
do
Girard works
55fi
do
do
557
do
do •
8-inch mill, No. 2, merchant products.
10-inch mill. No. 3. merchant products.
55S
.. .do -
-. ..do
55q
do
Upper Union works, Youngs-
town,
do
5fin
. . do
7 and 8-inch mills, merchant products.
7-inch mill, No. 1, merchant products.
8-inch mill. No. 2, merchant products.
8-inoh mill. No. 3, merchant products.
10-inch mill, No. 4, merchant products.
551
do
do
5B?
do
do
553
do
do
564
do
do
555
-do
do
556
do
do
Continuous No. 6 mill, hoops.
10-inch mill. No. 7, merchant products.
12-inch mill. No. fi, merchant products.
Muck bar, No. 2 mill.
567
do
. . .do
56S
do
do
569
do
Lower Union works.Youngs-
town.
do
576
do
571
do
do
7-inch mill. No. 2, merchant products.
57?
do
do
573
do
do
bands.
8-inch mill. No. 5, merchant products.
10-inch mill. No. 6, merchant products.
16-inch mill, No. 7, merchant products.
574
do
do
575
do
do...
fReturned Feb. 17, 1910.]
No.
P.M. 42
Description .
General profit and loss account of Carnegie Steel Co., for year 1903.
4452
UNITED STATES STEEL, COEPOEATION.
Book No. 4.
Schedule and statistical statements covering operation of United States Steel prodvets
Export Co. and Union Steel Co. for the year 190S.
No.
P. M. 44
P. M. 45
P.M. 46....
Description.
General profit and loss account of Union Steel Co. for year 1903.-
Sheets Nos. 1, 2, 3, summary of shipments and sales tor Union Steel Co. for year 1903.
General profit and loss account of United States Steel Products Export Co. for year 1903.
Schedule and statistical statements covering operations for the year 1904 of the companies
enumerated.
[Returned Feb. 18, 1910.]
No.
Description.
p rp „ /Sheet No. 1 , general profit and loss account of Pittsburgh Steamship Co. for year 1904.
\Sheet No. 2, schedule of operating expenses and statistics of Pittsburgh Steamship Co. for
year 1904.
P. T. 10 General profit and loss account of Pittsburgh & Conneaut Dock Co. tor year 1904.
Sccedule and statistical statements covering operations of transportation companies for
the year 1904.
[Returned Feb. 18, 1910.]
No.
P. T. 11..
Description.
General profit and loss account for year 1904 of the following companies:
The Duluth & Iron Range R. R. Co.
Duluth, Missabe & Northern Ry. Co.
El^ln, Joliet & Eastern Ry. Co.
Chicago, Lake Shore & Eastern Ry. Co.
Bessemer & Lake Erie R. R. Co.
Union R. R. Co.
Schedule and statistical statements covering operations of transportation companies for
the year 1904.
No.
p. T. 12
Description.
General profit and loss account for year 1904 of the following companies:
Northern Liberties Ry. Co.
Pittsburgh & Ohio Valley Ry. Co.
Newburg & South Shore Ry. Co.
AVaukegan & Mississppi Valley Ry. Co.
Elwood, Anderson & Lapel Ry. Co.
Etna & Montrose R. R. Co.
Youghlogheny Northern Ry. Co.
South West Connecting Ry. Co.
McKeesport Connecting Ry. Co.
Benwood & Wheeling Connecting Ry. Co.
Johnstown & Stony Creek Ry. Co.
Lake Terminal R. E. Co.
Masontown & New Salem R. R. Co.
St. Clair Terminal E. R. Co.
Donora Southern E. E. Co
Mercer Vallev R. R. Co.
UNITED STATES STEEL, COBPOBATION.
4453
Schedule and statistical statements covering operations of miscellaneous companies for the
year 1904.
[Returned February 19, 1910.)
No.
P. Misc. 3.
Description.
General profit and loss account for year 1904 of the following companies:
Carnegie Natural Gas Co.
Union Supply Co.
The United Supply Co.
Redstone Water Co.
Fairchance Water Co.
Youghiogheuy Water Co.
Mount Pleasant Water Co.
Trotter Water Co.
Huron Water Co.
Huron Water Co.
Standard Water Co.
Carnegie Land Co.
Conneaut Land Co.
American Land Co.
Girard Land Co.
Sharon Land Co.
Clairton Land Co.
Sharon Land Co.
Clairton Land Co.
Pittsburgh Limestone Co.
Edgar Zinc Co.
Standard Supply Co.
St. Clair Limestone Co.
Schedule of cost sheets for year 1904 for the production and manufacture of coke and coal
for the several subsidiary companies of said corporation as enumerated in schedule.
[Returned Feb. 19, 1910.)
No.
Company.
Department.
Product.
CIO
H. C. Frick Coke Co
AU plants
Coke
Oil
do
Coal.
C12
United States Coal & Coke Co
do
do
. do...
Coal.
National Mining Co
do
Do.
013
Sharon Coke Co . - .
South Sharon by-product
plant.
By-product coke.
Coal
C14
. do.
C13
Do.
Schedule and statistical statements covering operations for year 1904 for the several com-
panies and depdrtments as enumerated.
[Returned Feb. 19, 1910.)
No.
Description.
P.C.7.
P. C. 8.
General profit and loss account for year 1904 of the following companies:
H. C. Frick Coke Co.
United States Coal & Coke Co.
Sharon Coke Co.
Ingleside Coal Co.
National Mining Co.
Hostetter-Connellsville Coke Co.
Sharon Coal & Limestone Co.
Juniata Coke Co.
Sheet 1, details of miscellaneous profit and loss for year 1904 of the following companies:
H. C. Frick Coke Co.
United States Coal & Coke Co.
National Mining Co.
Sharon Coke Co. '
Sheet 2, details by months of shipments of coke during 1904 by H. C. Frick Coke Co.
Sheet 3, details by months of shipments of coal during 1904 by H. C. Frick Coke Co.
Sheet 4, details by months of shipments of coal and coke during 1904 by United States
Coal & Coke Co.
Sheet 6, details by months of shipments of coal and coke during year 1904 by Sharon
Coke Co.
Sheet 6, details by months of shipments of coal dm-ing 1904 by Ingleside Coal Co.
Sheet 7, details by months of shipments of coal diu-ing 1904 by National Mining Co.
4454
UNITED STATES STEEL COKPOEATION.
Schedule and statistical statements covering operations of Western Tube Co. for the year
1904-
[Returned Feb. 18, 1910.]
Description.
p. M. 47 1 General profit and loss account of Western Tube Co. for tbe year 1904.
Schedule of iron ore mine cost sheets of various subsidiary companies of said corporation
(Returned Feb. 17, 1910.]
No.
Name of mine.
No.
Name of mine.
0-1
Michigan.
Mansfield.
0-19
Chishohn.
0-2
! 0-20
Clark.
0-3
Hartford.
; 0-21
Atlantic.
0-4
Norrie-Aurora.
0-22
Moore.
D-5
Tilden.
, 0-23
Sellers.
0-«
Savoy.
i 0-24
Burt.
0-7
Zenith.
0-25
Day.
OS
Pioneer.
, 0-26
Glen.
0-9
Mountain Iron.
. 0-27
Hull.
0-10
Virginia.
0-28
Rust.
0-11
Higgins.
Lake Superior (hard).
' 0-29
Duluth.
0-12
0-30
Aragaon.
0-13
Lalce Superior (soft).
0-31
Chapin.
0-14
Queen.
0-32
Volunteer.
0-15
Soudan.
0-33
Spruce.
0-16
Fayal.
0-34
Adams.
0-17
Genoa.
0-35
Iron Ridgp.
0-18
St. Clair.
j 0-36
Chandler.
Schedules and statistical statements covering operations of the Lorain Steel Co. for the
year 1904-
[Returned Feb. 1910.]
No.
P. M. 48..
P. M. 49..
Description.
General profit and loss account of the Lorain Co. for year 1904.
Sheet 1, summary of shipments and sales.
Sheet 2, siiipments to customers— domestic and export— of product of the Lorain Steel Co.
Schedules and statistical statements covering operations of Illinois Steel Co. for the year
1904.
[Returned Feb. 17, 1910.1
No.
P.M. 50
Description.
General profit and loss account of Illinois Stsel Co. for year 1904.
Schedule and statistical statements covering operations of iron-ore mining companies for
the year 1904- ^
[Returned Feb. 19, 1910.]
No.
Description.
P. 0.5.
Combined general profit and loss account for all iron-ore mining companies for the 3
1904.
UNITED STATES STEEL COEPOBATION.
4455
Sdiedule and statistical statements covering operations of American Sheet & Tin Plate
Co. for the year 1904-
[Returned Feb. 17, 1910.]
No.
P.M. 52....
Description.
General profit and loss account of American Sheet & Tin Plate Co. (including Sharon Tin
Plate, Champion Iron & Steel, and Canton Roll & Machine Cos. for year 1904).
Schedule and statistical statements covering operations of the companies named for the
year 1904.
[Returned Feb. 17, 1910.)
No.
Description.
P.M.54...
General profit and loss account of National Tube Co. (including Pittsburgh Tube & Metal
Co.) for year 1904.
Schedule and statistical statements covering operations of American Bridge Co. for the
year 1904.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 56..
Combined general profit and loss account of, American Bridge Co. (New Jersey), Ameri-
can Bridge Co. (New York), A. & P. Roberts Co., Empire Bridge Co., Koken Iron
Works, and New Jersey Iron & Steel Cos. for year 1904.
Schedule and statistical statements covering operations of Shelby Steel Tube Co. for the
year 1904-
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 58 General profit and loss account of Shelby Steel Tube Co. for the year 1904.
Schedule and statistical statements covering operations of the National Tube Co. for the
.year 1904.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 60...
General profit and loss account of the National Tube Co. for the year 1904.
4456
TJiSriTED STATES STEEL COEPOEATION.
Schedule of mill cost sheets for the year 1905.
[Returned Feb. 17, 1910.]
No.
Company.
Department.
Product.
Bessemer iron.
2
do.
do
Spiegel.
3
do
South works
Bessemer iron.
4
do
.do
Basic iron.
do.
do
Spiegel.
6
do
.do
Ferromanganese.
7b
do.
do
Bessemer rail ingots.
Bessemer billet mgots.
s
do
.do
9
do.
do
Open hearth basic ingots. Plant
Open hearth basic ingots, Plant
10
do
.do
11
do
.do
No. 2.
Standard heavy rails.
Large billets, slab mill.
12
do.
do
13
do
.do
Plate slabs, slab mill.
14
.do.
do
Large billets, 40-inch blooming
Blooms for structural mill, bloom-
15
do
do
16
do
.do
ing mill.
Structiiral shapes, 28-inch mill.
17
. .do
do
Sheared plates.
18
do.
Bessemer iron.
19
do
do
Bessemer billet ingots.
20
.do
do
Large billets.
21
do.
.do
Small billets.
22
do
do .
Rods, Nos. 1 and 2 mill.
23
.do. .
do
Long billets, rod mill.
24
do.
do
Merchant steel, Morgan continu-
25
. .do.
do
ous mill.
Merchant steel, 9, 12, and IS inch
26
do
do
mill.
Long tie plates, 18 inch vertical
mill.
Angle splice bars.
27
do:
do.
28
do
do
29
.do
. .do
Tie plates. ■
Wolhaupter rail joints.
30
do.
do
31
do
do
32
.do.
.do
Track bolts.
33
do
do
Buts.
34
do
Union works
Milwaukee works
35
. .do.
Do.
36
do
do
37
... .do. .
do
iron.
Merchant steel, 8- inch mill No. 1.
Merchant steel, 9-inch mill No. 2.
Do.
38
do.
do
39
do
do
40
.do
do
Merchant steel, 12-inch mill.
41
do-
do
Merchant steel, 21-inch mill.
42
do
do
43. . ..
. .do. . . ..
do
Structural angles, 21-inch mill.
Open furnace continuous rail
joints, 21-inch mill.
Open furnace Bonzano joints,
21-inch miU.
Light rails, 22-mch mill.
Heavy rails, 22-mch mill.
Angle splice bars.
Continuous rail joints.
44
do
do
45 . .
.do
do
46
do
do
47. .
.do...
do
48
do
do
49
... .do
do
50
do
do
Bonzano rail joints.
Open hearth basic ingots, regular
product.
Open hearth basic ingots, Talbot
product.
36-inch blooming mill.
Structural shapes, 23 and 28 mch
mill.
Structural shapes, 20 and 23 mch
mill.
Structural shapes, 12-inch mill.
51
Ampripf^n Bfidgft *>>
Pencoyd works
52_
do
do
63
... .do.
do
54
do
.do
55
do
... .do ..
56
do
do
57
Nation Tube Co
Lorain works
58
do
do
Bessemer rail ingots.
Bessemer billet mgots.
No. 1 blooming mill.
No. 2 blooming mill.
Standard T rails.
59
do
.do
60
do
do
61
do. ..
do
62
do
do
63
do
do
64
do
... .do
65
do
do.
Splice bars.
66
do
.. .do
67
do
do
Steel skelp, No. 1 mill.
UNITED STATES STEEL CORPORATION.
Schedule of mill cost sheets for the year 1905 — Continued.
4457
No.
Company.
Department.
Product.
68
Nation Tube Co
T.nrain wnrlrs
Steel skelp, No. 2 miU.
Steel skelp. No. 3 mill.
Steel skelp, No. 4 mill.
Welded skelp.
Finished black tubular goods.
Bent socket foreings.
Welded socket forgings.
Finished black sockete
69
do
do
70
do
. .do . .
71
do
do
72
Nation Tube Co. (returned
Feb. 1, 1910).
Nation Tube Co . . . .
do
73
do
74
do
do
75
do
do
76
do.
do
Split sockets.
77
do
78..
do
.do
Bessemer biUet ingots.
36-inch blooming mill.
Muck bar No. 1 puddle mill.
Muck bar No. 2 puddle mill.
Scrap bar No. 2 puddle mill.
Common plate metal.
Refined plate metal.
Charcoal scrap blooms.
79
do
do . .
80
do
. .do . .
81 .
do
do
82
.do.
do
83..
do
.do
84
do. .
do
85
do
do
86..
do
.do
87
. ..do... .
do
Charcoal scrap bar. No. 2 mill.
88
do
do
89..
do
do
Steel skelp, No. 1 mill.
Steel skelp. No. 2 mill.
Slfiel skelp, No. 3 mill.
Steel skelp. No. 4 mill.
Steel skelp, No. 5 mill.
90
. .do.
do
91..
do
.. ..do
92 .
do.
do
93.. . .
do
do
94..
do
.. ..do
Iron skelp, No. 1 mill.
Iron skelp. No. 2 mill.
95 .
....do.
do
96-.
do
do
97..
do
do . .
Iron skelp. No. 4 mill.
Iron skelp. No. 5 mill.
98
. .do.
do
99-.
do
do
Welded skelp.
100.
do
do
Finished black tubular goods.
Galvanizing tubular goods.
Finished galvanizing tubular
goods.
Bent socket forgings.
Welded socket forgings.
Finished black sockets
101.
.do.
.do
102.
do
do
103
.. .do.
... .do ....
104
.. ..do
do
105
do
106
.. ..do
do
107
do ...
. ..do
SpUt sockets.
108
do
Boston EolUng Mills
do
Steel skelp, No. 1 mill.
109
Steel skelp, No. 2 mill.
110.
do
do
Ill
do
Socket iron. No. 2 mill.
112
do ...
Continental department Elba
do
Muck bar.
113
....do
Scrap bar.
Steel skelp. No. 1 mUl.
114
do
do
115
...do
Steel skelp, No. 2 mill.
116
do
do
Steel skelp. No. 3 miU.
117
do
do
Iron skelp, No. 1 mill.
118
do
do
119
do
do
Iron skelp. No. 3 mill.
120
do
do
Welded skelp.
121
do
122.
do
do
Bent socket forgings.
123
do
do
Welded socket forgings.
124
do
do
Finished black sockets.
125
do
do
Split sockets.
Thread protectors.
126
do
do
127
Republic department
do
Muokbar, No. Imill.
128
do
do
Muck bar. No. 2 mill.
129
do
Scrap barj No. 1 mill.
130
do
do
Scrap bar, No. 2 mill.
Steel skelp, No. 1 mill.
131
do
132
do
.do
Steel skelp. No. 2 mill
do
Steel skelp, No. 3 mill.
134
do
. do
Iron skelp,'No. 1 mill.
do
136
do
..do
Iron skelp. No. 3 miil.
Welded sMp.
137
Pennsylvania department-. .
do
do
Finished black tubular goods.
140
do
do
Bent socket forgings.
141
do
do
Welded socket forgings.
142
do
do
Finished black sockets.
143
do
Riverside works
Bessemer iron.
L44
do
Bessemer billet ingots.
145
do
do
32-inch blooming mill.
146
do
do
Steel skelp. No. 1 mill.
do
do
Steel skelp; No. 2 mill.
E4S 1
do
..do
Steel skelpi No. 3 mill.
149.'.'.'.'.. J
do...-
do
Steel skelp, No. 4 mill.
4458
UNITED STATES STEEL CORPOEATIOX.
Schedule of mill cost sheets for the year 1905 — Continued.
No.
Company.
Department.
Product.
Steel skelp, No. 5 mill.
Welded skelp.
151
. ..do
do
152
do
do
Finished black tubular foods.
Galvanized tubular goods.
153
do
do
154
do
do
FimshedgalTanlzedtabulargoflds,
Bent socket forgings.
155
do
do
156
do
...do
Welded socket forgings.
157
.do
do
Finished black sockets.
158
do
..do
Finished galvanized sockets.
159. ...
. do
do
SpUt sockets.
160
do
Steubenville works
Bessemer iron.
161
do
American department
... .do
Welding skelp.
Finished black tubular goods.
162
do
163
. . do
do
164
do
do
Finished galvanized tubular
165..
do
do
goods.
Bent socket forgings.
Welded socket forgings.
166
do
..do
167
do
do
Finished black sockets.
168
do ..
....do
Split sockets.
169
do
do
170 ■
.. .do
AlUadon department
do
Welded skelp.
171
do
Finished black tubular goods.
Welded skelp.
172
do
Youngstown department
do
173
do
Finished black tubular goods.
Bent socket forgings.
Welded socket forgings.
174
do
do
17S
.. . do.
. .do
176
do
do
177
do
do
Split sockets.
Welded skelp.
Finished black tubular goods.
Finished black sockets.
178
do
179
do
180
- ..do
.do.. .
181 . .
do
do
Split sockets.
Welded skelp.
Finished black tubular goods.
182
do
Syracuse department
183
do
Schedules and statistical statements covering operations of Clairton Steel Co. for
year 1904-
-No.
P. M. 62..
[Returned Feb. 17, 1910.)
Description.
General profit and loss account of Clairton Steel Co. from May 1st to Dec. 31, 1904.
Schedules and statistical statements covering operations of Union Steel Co. for the
year 1904.
[Returned Feb. 17, 1910.]
^ ^^ ^
Description.
P.M. 64....
General profit and loss account of Union Steel Co. for year 1904.
Schedule of mill cost sheets for the year 1905.
[Returned Feb. 1, 1910.]
Xo.
Company.
Department.
Product.
184
185
American Sheet & Tin Plate
Co.
do
.aitna-Standard works
do
Black sheets.
Black sheets and plates; jobbing
mill.
Black sheets and plates; plate
mill.
Galvanized sheets.
Open-hearth acid ingots.
Sheet bars.
186
do
do
187
do
do-
188
do
189
do
190
do
do..
191
do
do
Galvanized slieets.
UNITED STATES STEEL OOEPORATION.
Schedule of mill cost sheets for the year 1905 — Continued.
4459
No.
Company.
Department.
Product.
192
American Sheet & Tin Plate
Co.
do
193
Do.
194
do
Do.
195
do
Do
196
do
.. do .
Galvanized sheets
197
do
Black sheets
198
do
do
Galvanized sheets.
199
do
Black sheets
200
do
Do.
201
.... do
New Philadelphia works . . .
Do
202
do
Black sheets and plates: bobbing
mill.'
Black sheets
203
do
Wellsville works
204
do
do . .
205
do
206
do
Muck bar
207
do
Scrap bar.
208
do
do
209
do
do
Scrap bar sheet bars.
Billet bar sheet bars
210
do
do
211
do
212
do
Scottdale works
Do.
213
do
Do.
214
do
Do.
215
Woods works
Run-out plate.
216
... do
do
217
do
Sheet bars.
218
....do
do
219
do
.do
Black plates and sheets.
Planished and polished sheets.
Black plate and tin plate.
Do.
220
do
do
221
do
222
do . . . .
Anderson works
223
do
Cambridge works
Black plate.
Black plate and tin plate.
Do.
do
225
do
Crescent works ,
do
Do.
227
do
Falcon works
Do.
228
do
La Belle works
Do.
-do
Do.
230
do
Monongahela works
Do.
Do.
232
do
National works
Do.
do
Do.
234
do . .
Pennsylvania works
Do.
235
Pittsburgh works
Do.
do
Do.
237
do
Shenango works
Do.
do
Do.
239
.do
United States works
Do.
do
Bessemer iron.
do
do
Garrett rod miU.
242
do
Bright coarse wire.
243
211
do
do
Garrett rod mill.
do
l|-inch billets, construction mill.
.do
Rods, construction mill.
246
247
do
do
do
do
do
do
Bright coarse wire, 8J and coarser
Bright coarse wire, 84 to 13J.
Bright coarse wire, 13f and finer.
do
Garrett rod mill.
250
do
do
Bright coarse wire.
251
do
GaiTett rod mill.
do
do
Bright coarse wire.
253
254
255
do
do
do
Bessemer billet ingots.
do
do
Open-hearth basic Ingots.
do
do
Open-hearth acid ingots.
257
do
do
do
do
No. 1 blooming mill.
35-inch blooming mill.
259
do
do
Garrett rod mill.
do
do
Bright coarse wire, 8J and coarser.
261
do
do
Bright coarse wire, 8f to 13§.
do
...do
do ;
Garrett rod miU.
264
do
. .do
Bright coarse wire.
265
do
do
Do.
IJ-inch billets, roughing mill.
do
Rods, No. 1 finishing miU.
do
do
Rods, No. Xflnishing mill.
269
270
do
do
do
H. P. works
Bright coarse wire.
Garrett rod mill.
do
do
Bright coarse wire.
272
do
NevUle works
Bessemer iron.
273
...do
Rankin works
Garrett mUI rod.
4460
UK^ITED STATES STEEL CORPORATION.
Schedule -of mill cost sheets for the year 1905— Continued.
No.
275
276
277
278
279
280
281
282
285
286
287
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
Company.
Department.
Product.
American Sheet & Tin Plate
Co.
do Rockdale works.
do Salem works
'do Scott Street works
do Sharon works
! ! ! ! ido do.
do do.
do do.
do I do.
do i Shoenberger works
do do
do do
do do
do do
do I do
Rankin works ] Bright coarse wire.
.do.
.do..
.do I Waukegan works..
.do I do
.do : do
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do.
..do..
..do..
..do..
..do..
..do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do..
.do.,
.do..
.do.,
.do.,
.do.,
.do.,
.do.,
.do..
.do..
..do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do.,
.do..
■ do..
do..
do..
J do..
do..
.do do
.do ' Worcester works, south.
.do.
.do.
.do.
.do.
.do..
.do.
.do.
.do.
.do.
-do.
.do.
.do.
.do.
.do.
.do do
-do Worcester works, central '. '.
.do do
.do do
• do Worcester works, north . . .
Worcester works, 9 south . . .
....do
....do
Do.
Do.
Do.
Tin plate wire.
Small billets, rough-rod mill.
Rods, No. 1 mill.
Rods, No. 2 mill.
Bright coarse wire.
Bessemer iron.
Bessemer billet ingots.
Open-hearth basic ingots.
No. 1 blooming n(ill.
No. 2 blooming mill
Plates, 127-inch mill.
Plates and sheets, 60-inch to 72
inch mill.
Plates and sheets, 54-inch to GO
inch mill.
1} billets, steel, rough-rod mill.
IJ billets, copper, rough-rod mill.
Rods, steel, Nos. 1 and 2flnishina
mill.
Rods, steel, No. 3 finishing mill.
Rods, copper, No. 3 finishing mill.
Rods, steel. No. 4 finishing mill
Bright coarse wire, SJ and coarser.
Bright coarse wire, 8} to 13J.
Bright coarse wire, 13} and finer.
Copper coarse wire, 5 months.
Copper coarse wire, 1/Oand C, 7
months.
Copper coarse wire, finer 1/0, 7
months.
Open-hearth basic ingots, new
works.
Open-hearth acid ingots, new
works.
Open-hearth acid ingots, old
works.
Blooming mill.
IHnch copper biUets, No. 2 mill.
l|-inch steel billets, No. 2 mill.
Steel billets, merchant mill.
Charcoal billets, merchant mill.
Steel rods. No. 2 mill.
Copger rods, No. 2 mill.
Do.
Do.
Steel rods. No. 3 mill.
Copper rods, No. 3 mill.
Steel rods. No. 4 mill.
Steel rods, No. 5 mill.
Steel rods. No. 6 mUl.
Bright coarse wire, common 1/0
and coarser.
Brieht coarse wire, common /Ol.
Bright coarse wire, common, 9
to 14.
Bright coarse wire, common, la
to 20. , , ,,.
Bright coarse wire, special, I/O
and coarser.
Bright coarse wire, special, l/o
to 8. , „ ,
Bright coarse wire, special, 9 to
14.
Bright coarse wire, special, 15 to
20.
Copper coarse wire.
Bright coarse wire, common, 9
to 15. ,,
Bright coarse wire, common, lo
to 17. ,^
Bright coarse wire, common, 18
to 20. ,
Bright coarse wire, common, 5
and.coarser.
Bright coarse wire, common, 9
to 15.
Bright coarse wire, common, 16
to 17.
UKITED STATES STEEL COEPOKATION.
Schedule of mill cost sheets for the year 1905 — Continued.
4461
No.
Company.
Department.
Product.
335
336
American Sheet & Tin Plate
Co.
do
Worcester works, nortli
do . ...
Bright coarse wire, common, 18
to 20.
Goldsmith's bright coarse special
wire.
Jackson's bright coarse special
wire.
Midgley's bright coarse special
wire.
337
do
do
338
....do
do
339
do
do
340
do
do
Copper coarse wire, 1/0 and
coarser.
Copper coarse wire, finer than 1/0,
341
do
do
Book 5.
Schedule and statistical statements covering operations for the year 1904 of the companies
enumerated.
[Returned Feb. 18, 1910.]
No.
Description.
P.U. S.8..
General profit and loss account of United States Steel Corporation (including Federal
Steel Co.) for year 1904.
Schedule and statistical statements covering operations for the year 1904.
(Returned Feb. 17, 1910.]
No.
P.M. 66....
Description.
General profit and loss account of Carnegie Steel Co. for year 1904.
Schedule of sales contracts, etc., of the Carnegie Steel Co.
[Eetumed Jan. 28, 1910.]
No.
Description.
Scale contracts, entered by Carnegie Steel Co., and on which it made shipments during
the year 1906.
Schedule of mill cost sheets for the year 1905.
[Returned Feb. 1, 1910.]
No.
Company.
Department.
Product.
342
Carnegie Steel Co.
Edgar Thomson works
do
Bessemer iron.
343
do
344
.. .do. . .
do
Low phosphor iron.
Spiegel.
Ferrosilicon.
345
do
do
346
do. .
do
347
do
do
348
.. ..do
..do
Bessemer rail ingots.
Blooming mill.
EaUs, No. 1 mill.
349
do
do . .
350
.. ..do -
...do
351
do
do
Rails, No. 2 mill.
352
.. ..do
do
Rails, No. 3 mill.
353
do
354
do. .
do
355
do
..do
Bessemer billet ingots.
Open-hearth basic ingots.
38-inch blooming mill.
356
do
do
357
do
....do
358
do
do
359
do . --.
do
21-inch mUli sheet billets.
360
do
do
21-inch mill, splice-bar shapes.
21-iach mill, small billets.
361
do
do
31572— No. 53, pt. 3—12-
-10
4462
UNITED STATES STEEL COEPOEATION.
Schedule of mill cost sheets for the year 1905-
-Continued.
No.
Company.
Department.
Product.
362
40-inch blooming mill, mercliant
363
do
do
blooms.
40-incli blooming mill, merchant
364
do
do
blooms.
40-inch blooming mill, rerolling
365
do
do
blooms.
14-inch mill, small billets.
366
do
do
13-inch mill, merchant bars.
367
do
do
10-inch mill. No. 1 merchant bars.
368
do
do
10-lnch miU, No. 2 merchant bars.
369
do
do
8-inch mill, merchant bars.
370
do
do
Splice bars.
371
do
Bessemer iron.
372
do
Spiegel.
Ferromanganese.
373
do
do
374
do
Carrie works
Basic iron.
376
. . do
Bessemer billet ingots.
376
do. . ...
do
Open-hearth basic ingots, No. 1
377
do
do
. plant (regular).
378
do
plant (regular).
Open-hearth basic ingots. No. 3
379
do
... do
plant (Monel).
Open-hearth basic ingots, No. 3
380
do
do
plant (Monel).
Open-hearth basic Ingots No. 3
plan (regular).
381
do
do
382
do
^do
40-iTi('h mill, "pfipish'^d sliap'^'^-
383
do
do
384
do
do
28-inch blooming mill.
386
do
do
33-inch cogging mill.
35-inch mill, structural shapes.
386
do
do
387
do
do
388
do
do
33-inch mill, steel ties.
389
.. ..do
do
390
do
do
30-inch slabbing mill.
391
do
do
392
do
do
140-inch sheared-plate mill.
393
do
do
128-inch sheared-plate mill.
84-inch sheared-plate mill.
48-inch universal plate mill.
394
do
do
396
do
do
397
do
do
398
do
10-inch merchant mill.
398
. ...do
Howard axle works
do
401
do
do
Axles turned all over.
402
do
do
tive driving.
Schedule and statistical statements covering operations of transportation companies for
the year 1905.
[Returned Feb. 10, 1910.1
No.
Description.
P. T. 13
P. T. 14....
General profit and loss account for year 1906 of following companies:
The Duluth & Iron Range Railroad Co.
Duluth, Missabe & Northern Railway Co.
Elgin, Joliet & Eastern Railway Co.
Bessemer & Lake Erie Railroad Co.
Union Railroad Co.
General profit and loss account for year 1905 of the following companies:
Northern Liberties Railway Co.
Pittsburgh & Ohio Valley Railway Co.
Newburg & South Shore Railway Co.
Waukegan & Mississippi Valley Railway Co.
Elwood, Anderson & Lapel Railway Co.
Etna & Montrose Railroad Co.
Youghiogheny Northern Railway Co.
South West Connecting Railway Co.
McKeesport Connecting Railway Co.
Benwood & WheeUng Connecting Hallway Co.
Johnstown & Stone Creek Railway Co.
Lake Terminal Railroad Co.
Coimellsville & Monongahela Hallway Co. (including Masontown & New Salem
R. R. Co.).
St. Clair Terminal Railroad Co.
Donora Southern Railroad Co.
Mercer Valley Railroad Co.
Pennsylvania & Lake Erie Dock Co.
UNITED STATES STEEL COEPOEATION.
4463
Schedule and statistical statements for 1905.
[Returned Feb. 18, 1910.]
No.
Description.
P. T. 15..
P. T. 13..
P. T. 16.
Sheet No. 1. General profit and loss account of Pittsburgh Steamship Co. for year 1905.
Sheet No. 2. Schedule of operating expenses and statistics of Pittsburgh Steamship Co.
for year 1905.
General profit and loss account of Pittsburgh & Conneaut Dock Co. for year 1905.
Schedule and statistical statements for 1905.
[Returned Peb. 17, 1910.]
No.
Description.
P.M. 71...
General profit and loss account of Illinois Steel Co. for year 1905.
Schedule of mill cost sheets for the year 1905.
[Returned Feb. 1, 1910.]
No.
Company.
Department.
Product.
403
Carnegie Steel C6
404
do
do
Basic iron.
405
do .
Lower Union mills (Pitts-
burgh).
. ..do
9-inch mill bars.
A 406
407
do .".
12-inch mill, bars.
do
do
408
do
do
409
do
.. do
Pointed spring steel.
Forgings.
&-inch mill, merchant bars.
410
do
do
411
do
Upper Union mills (Pitts-
burgh).
412
do
413
do
. . do
17-ineh mill, angles.
18-inch mill, merchant products.
20-inch mill, merchant products.
No. 1 universal plate mill.
No. 2 universal plate mill.
Splice bars.
Basic iron.
414
do - -
do
415
do
do.;
416
do
do
417
do
do
418
do
.. do
419
do
Clairton works
420
do
do
Open-hearth basic ingots.
Open-hearth acid ingots.
40-inch blooming mill.
2S-inch billet mill.
421
do.. .
do
422
do
do
423
do
do
424
do
do
425
do
. ..do
18-inch merchant mill.
426
do
Donora works - .
Basic iron.
427
do
do
Open-hearth basic ingots.
40-inch blooming mill.
428
do
do
do
429
430
.do . . ..
do
Open-hearth basic ingots, regular.
Open-hearth basic ingots, Monell.
Blooming mill.
431
do
do
432
... do
do
433
do
do
434
do
Ohio works ^ .
Bessemer iron.
435
do
do
Bessemer rail ingots.
Bessemer billet ingots.
Blooming mill.
Large billets.
Small billets.
436
... .do
. do
437
do
do
438
do
. . do
439
do
do
440
do
...do
Sheet and tin plate bars.
Rails.
441
do
do
442
do
New Castle works
Bessemer iron.
443
do
do
444
do
do
445
do
do
Sheet bars.
446
do
Mingo works
447
do
448
do
do
Blooming mill.
do
do
450
do
do
10-inch mill, bars, bands, etc.
4464
UNITED STATES STEEL COKPOKATION.
Schedule of mill cost sheets for the year 1905 — Continued.
No.
Company.
Department.
Product.
452
453
do
do
do
do
Bessemer billet ingots.
Blooming mill.
do
.do
Sheet bars.
455
do
Columbus works
Bessemer iron.
456
do
.do
Bessemer billet ingots.
457
do
do
BlnnTninpniill.
do
.do
Sheet bars.
459
.do.
Basic iron.
460
do
.do
Open-hearth basic ingots.
Blooming mill.
Skelp and angles.
461
.do ■
do
462
do
.do...,
463
.do.
Bessemer iron.
464
do
Zanesville works
Do.
465
.do.
a-inch mill, No. 5, merchant
466
do
do
products.
8-mch mill No. 5, cotton ties.
467
.do.
do
8-inch mill, No. 6, merchant
468
do
do
products.
8-mch mill. No. 7, cotton ties.
469
do.
.do
S-uich mill, No. 8, merchant
470
do
do
products.
8-mch mill, No. 9, hoops.
471
.do.
.do
8-inch mill. No. 9, cotton ties.
472
do
do
9-inch mill. No. 3, merchant
473
.do.
do
products.
10-inch mill. No. 2, merchant
474
do
do
do
do
do
.do.
.do
products.
475'
Clark works . .
products.
8-mch mill. No. 2, merchant
■176
do
products.
8-inch mill. No. 3, merchant
477
.do
products.
478
..do
products. *
479
do
products.
12-inch mill. No. 6, merchant
480
do
do
do
do
do
do
do
do ...
do
do
products.
20-inch mill, No. 7, merchant
48;
....do
products.
482
483
do
8-inch mill, No. 2, hoops, etc.
8-inch mill. No. 2, splice-bar
shapes, etc.
10-inch mill. No. 4, splice-bar
shapes, etc.
10-inch mill. No. 4, light rails.
10-inch mill. No. 4, merchant
484
do .■
485
....do
486
do
487
.do
488
do
products.
16-inch mill. No. 3, angles.
16-inch mill. No. 3, Ugfit rails.
8-inch mill, No. 1, noops.
489
do
do
do
do
490
Monessen works
491
. .do
10 to 20 inch mill, No. 2, skelp,
492
do
etc.
493
do
do
etc.
8-inch mill No 1
494
do
do
496
do
Duncansville works
etc.
8-inch mill No 2 cotton ties.
496
do
. .do
lO-inch mill, No. 3, hoops.
497
do
Upper Union works
(Youngs town),
do
498
do
products.
8-iiich mill No 2, merchant
499
do
do
products.
8-inch mill No 3, merchant
500
do
do
products.
10-inch mill No. 4, merchant
501
do
.. .do...
products.
502
do
do
products.
503
do
do
10-inch mill No 7 merchant
504
do
do.
products. , ^
505
do
Lower Union works
(Youngstown).
products.
Muck bar, No. 2 mill.
UNITED STATES STEEL COEPOEATION.
Schedule of mill cost sheets for the year 1905 — Continued.
4465
No.
P. M. 73 .
No.
Company.
Department.
Product.
S06
Carnegie Steel Co
Lower Union Works
(Youngs town),
do
Muck bar. No. 3 mill.
7-incli mill, No. 2,
products.
8-mch mill, No. 4,
products.
8-inch mill. No. 3,
products.
lO-inch mill. No. 6,
products.
16-inch mill. No. 7,
products.
507
do
merchant
508
do
do
509
do
do
510
do
do
merchant
511
do
.do .
[Returned Feb. 1, 1910.]
Description.
General profit and loss account of Clairton Steel Co. tor the year 1905.
No.
[Returned Feb. 17, 1910.]
Description.
P.M. 75 ..
P.M. 76...
General profit and loss account of United States Steel Products Export Co. for year 1905.
General profit and loss account of Union Steel Co. for year 1905.
Schedules and statistical statement for the year 1905.
[Relumed Feb. 19, 1910.)
No.
P. Misc. 4.
Description.
General profit and loss account for year 1905 of the following companies:
Carnegie Natural Gas Co.
Union Supply Co.
The United Supply Co.
Hecla Supply Co.
Mount Pleasant Water Co.
Trotter Water Co.
Standard Water Co.
Carnegie Land Co.
Conneaut Land Co.
American Land Co.
Sharon Land Co.
Girard Land Co.
Clairton Land Co.
Farmers' Trading Co.
Pittsburg Limestone Co.
Edgar Zinc Co.
Standard Supply Co.
St. Clair Limestone Co.
The Coal cSi Limestone Supply Co.
4466
UNITED STATES STEEL COEPORATION.
Schedule of mill cost sheets for the year 1906.
[Returned Feb. 1, 1910.]
Xo.
Company.
Department.
Product.
1
Illinois Steel Co
2
do
do
Spiegel.
3
do
4
do
do . ...
Basic iron.
do
. .do
6
do
do .
Bessemer rail ingots.
do
.do
8
.do.
do
9
do
do
Open-hearth basic ingots, plant
No. 2.
10
do.
do
n
do
do
Plate slabs.
12
do
.do
Larf:e billets, 40-inch blooming
13
. .do.
do
mill.
14
do
do
ing mill.
Structural shapes, 28-inch mill.
15
.do
.do
Standard heavy rails.
16
do
do
Sheai'ed plates.
17
... .do.
18
do
do .. .
Bessemer billet ingots.
19
do
do
20
do
do
Small billets.
21
do
do
Rods, No. 1 and No. 2 mills.
22
.do
.do
23
do
do
Merchant steel, Morgan continu-
'"'4
do
do ... .
ous mill. Mer.
Merchant steel, 12-inch and IS-
25
. .do
do
inch mill.
26
do
....do
Wolhaupter base plates, 18-inch
27
. .do
do
mill.
Angle splice bars.
Bessemer iron.
28
do
Union worlcs
29
. . .do
do
Spiegel.
Malleable bessemer iron.
30
do
MiJwauiiee works
31
do
.do
Bessemer iron.
32
.do
do
33
do
do
Merchant steel, 9-inch mill. No. 1,
34
. ...do
do
35
do
do
Merchant steel, 12-lnch mlU.
36
do ,
do
37
. .do
do
38
do ...
... .do
Light rails, 22-inch mill.
Heavy rails, 22-inoh mill.
Angle splice bars.
Open-hearth basic ingots, reg
process.
Open-hearth basic ingots, Monell
process.
Open-hearth acid ingots.
36-inch blooming mill.
Structural shapes, 23-inoh and
26-inch mill.
Structural shapes, 20-inch and
23-inch mill.
Structural shapes, 12-inoh mill.
39
do
do
40
. .do
do
41
Pencoyd works .
42
. .do
do
43
do
do
44
. . .do
do
45
do
do
40
.do
. . .do .. .
47
do
do
48
National Tube Co
49
do
do
Bessemer rail ingots.
Bessemer billet mgots.
No. 1 blooming mUl.
No. 2 blooming mill.
50
... .do
. . -do. . .
51
do
do
52
do
do
do... .
53
do
54
do
do
56
do
do
56
do
do
Splice bars.
67
do
do
58
do
do... .
steel sketo, No. ImlU.
Steelskelp, No.2niiU.
Steel skelp, No. 3 mill.
Steelskelp, No. 4mm.
Welded skelp.
Finished black tabular goods.
69
do
do
60
do
do
61
do
do
62
do
do
63
do
do
64
do
do. . .
65
do
. do
Welded socket forgmes.
66
do
do.. .
67
do
68
do
do.
Bessemer billet ingots.
35-inch blooming mill.
40-ineh slabbing mill.
Muck bar. No. 1 puddle mill.
69
do
do
70
do
do.
71
do
do
UNITED STATES STEEL COEPOEATION.
Schedule of mill cost eheetifor the year 1906 — Continued.
4467
No.
Company.
Department.
Product.
72
National Tube Co . . . .
National worics
Muck bar, No. 2 puddle mill.
Steel skelp, A mill.
Steel skelp, B mill
73
do
do
do
do
do
do
do
do
do
do
do
do
:;;:;do!:!!;;::;!::::::!:::::
'.'//Aoy/////. '.'.v.... '.'.....'.
do
74
. . .do
75
do
Steel skelp, D mill.
76
do
Steel skelp. No. 1 mill
77
do
Steel skelp, No. 2 mill.
78
do
Steel skelp. No. 3 mill
79
. .do . .
Steel skelp. No 4 mill
80
do
Steel skelp. No. 5 mill.
81
. ...do
Iron skelp. No. 1 mill
82
do
S3
do
Iron skelp, No. 3 mili.
34
do
Iron skelp. No 4 mill
85
do
86
... .do
Welded skelp.
87
do
do
Bent socket forgings.
Welded socket forgings
89
do
.do
90
do
do
91
. .do
Steel skelp. No. 1 mill.
Steel skelp. No. 2 mill.
92
do
do
93
. .do
do
Steel skelp. No. 1 mill.
94
do
. .do.. ..
Iron skelp. No. 2 mill
95
do
Republic department
do
Muck bar. No. 1 mili.
96
.do
Do.
97
do ...
.do . . .
Iron skelp. No 2 mill
98
. ...do
99
. ...do
Steel skelp. No. 1 mili
100
do
do
101
do
do
do
Steel skelp No. 3 mill.
102
do . . . .
Iron skelp No. 1 mill.
103
. do
do
104
do
. ...do
Iron skelp. No. 3 mill.
105
.do ...
Welded skelp.
106
do
107
do ...
...do
Bent socket forgings.
108
do
do
109
do
110
do ....
Pennsylvania department.. .
do
Welded skelp.
111
.do
112
do
do
113
do . . ..
do
Welded socket forgings.
114
.do
do
Finished black sockets.
115
Riverside worics
Bessemer iron.
116
do
. ...do
Bessemer billet ingots.
117
do
do
118
do
do
119
do
.. do
Steel skelp. No. 2 mill.
120
do
do
Steel skelp, No. 3 mill.
121
do
do
Steel skelp. No. 4 mill.
122
do
.do
Steel skelp. No. 5 mill.
123
do
do
Welded skelp.
124
do
do
Finished black tubular goods.
126
. .do
Bent socket forgings.
do
do
127
do . ..
. ...do
Finished black sockets.
128
do
Steuben ville works
American department
, ...do
Bessemer iron.
129
do
Welded skelp.
130
do
Finished black tubular goods.
do
do
132
do
do
Welded socket forgings.
133
do
do
134
Ellison department
Welded skelp.
135
do
do
130
137
do
do
Syracuse department
.do
Welded skelp.
Finished black tubular goods.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 78.
General profit and loss aoooi
Plate and Canton Roll & M
mt of American Slieet & Tin
achlne Cos.) for year 1905.
Plate Co. (including Sharon Tin
4468
UNITED STATES STEEL COEPOKATION.
Schedule of mill cost sheets for the year 1906 — Continued.
[Returned Feb. 1, 1910.]
No.
Company.
Department.
Product.
138
American Sheet & Tin Plate
Co.
... .do
Dover worjcs
Black sheets.
139
do
140
do . .
r.f^ntoTi w"rl^''
Black sheets.
141
. ...do
Do.
142
143
do
do
do
do
do
do
do
do
do
do
New Pluladelphia works
Black sheets, Jobbing mill.
144
Piqua worls
Muck bar.
146
Scrap bar.
Muck bar sheet bars.
147
do
148
' do
Scrap bar sheet bars.
Black sheets.
149
. do .
150
Do.
151
' Scottdale works
Do.
152
Do.
153
. . .do
Hyde Park works .
Do.
154
do
Do.
155
.. .do...
Saltsburgli works
Open hearth acid ingots.
Do.
156
do
Vanderfrigt
157
do
158
.. ..do.
.. .do
Black sheets.
159
.do
do
160
do
Aetna, standard works
do. .
161
do
Black sheets, lobbing mill.
Black sheet plate mill.
162
do
do
163
do
... .do.. .
164
do
Geumsey works
Black sheets.
165
.do.
do
166
do
167
do
Woods works
168
do
Black sheets
169
do
.. .do.
Black sheet plate mill.
Black sheets
170
do
Mercer works
171
do
Black plate and tin plate.
Do
172
do
Sharon works
173
do
United States works
Do
174
do
Do.
175
do
Shenango works
Do
176
do
Crescent works
Do
177
do
Do
178
do
Falcon works
Do
179
do
Do
ISO
do
Do
181
do
Laughlin works
Do
182
do ...
Do
183
do
Morewood works
Do
184
do
do
do
do
do
American Steel & Wire Co . . .
do
do
do
Cambridge works
Black plate (only).
Black plate and tm plate.
185
National works .
186
187
188
Pennsylvania works
Do.
Do.*
189
190
do
191
do
Bright coarse wire, 8J and C.
common.
Bright coarse wire, 8J extra.
Bright coarse wire, 8J to 15J
common.
Bright coarse wire, 8j to 15i
extra.
192
do
193
do
do.. .
194
do
All Amercan works
195
do
196
do
do.. .
Bright coarse wire.
Garrett rod mill.
Bright coarse wire.
Bessemer iron.
197
do
Anderson works
198
do
do
199
do
200
do
201
do
do...
Bright coarse wire, 8i and coarser
extra.
Bright coarse wire, 8} to 15{
common.
Do.
Bright coarse wire, SJ to 16J extra.
Bright coarse wire, 15} to nj
common.
202
do
do.. .
303
do
do
204
do
do.
305
do
do
206
...do
207
....do
do..
Bright coarse wire.
208
....do
De Kalb works
209
...do
Donora works
210
...do
. . .do
Bright coarse wire.
Garrett rod mill.
Bright coarse wire.
211
....do...;
H. P. works
212
....do
do
UNITED STATES STEEL COEPOKATION.
Schedule of mill cost sheets for the year 1906 — Continued.
4469
No.
Company.
Department.
Product.
213
American Steel & Wire Co...
. .do.
214
do
Bessemer billet ingots.
Open hearth basic ingots.
Open hearth acid ingots.
No. 1 blooming mill.
36-inch blooming mill.
Garrett rod mill.
215
do
.do.. .
216
do.
do.
217
do
do
218
do
.do.. .
219
...do.
do
220
do
do
Bright coarse wire, 8J and com-
mon.
Bright coarse wire, 8J extra.
Bright coarse wire, 8J to ISJ.
Bright coarse wire, SJ to 15J extra.
221
. .do.
do
222
do
do
223
do
.do.. .
224
do
do
225
226
.do.
.do. .
Bright coarse wire.
227
do
Do.
228
do
Do.
229
..do.
Salem works
Do.
230
do
Tin plate bars.
Small billets, roughing mill.
Rods No. 1 finish mill.
231
do
. ..do
232
.do.
do.. .
233
do
do
Rods No. 2 mill finish.
234
....do
. .do
Bright coarse wire.
Bessemer iron.
235
do
Shoenberger works
236
do
do
237
.do.
.do
Open hearth basic ingots.
238
do
do .
No. 1 blooming mill.
239
do
do
do
240
.do
127-ineh plate mill.
241
do
do
60 and 72 inch sheet mill.
242
.do
. ...do
243
do
do
li inch billets steel, rough rod.
Rods steel 1 and 2 finish mill.
244
do
245
..do.
do
Rods steel No. 3 rin. mill.
246
.do
Rods steel No. 4 rin. mill.
247
do
do.
Bright coarse wire 8i and C.
248
do
.do
common.
Bright coarse wire, 85 and C.extra.
249
do
do. . .
Bright coarse wire, 8Jtol5J com-
250
do
.do
mon.
Bright coarse wire, 8J to ISJextra.
261
do
do . . .
Bright coarse wire, 15| to 17i
252
do
Worcester works (North) . . .
do
common.
Bright coarse wire, 8J and coarser
253
do
common.
Bright coarse wire, 8J and coarser
254
do
do
extra.
Bright coarse wire, 8J to 15J com-
255
do
do
mon.
Bright coarse wire, 8| to 15J
256
.do
Worcester works (South).. . .
....do
extra.
Open hearth acid ingots, old
257
do
works.
Open hearth basic ingots, old
258
do
do
works.
Open hearth basic ingots, new
269
do
do
works.
Open hearth acid ingots, now
260
do
.do
works.
Blooming mill.
261
do
Steel billets, merchant mill.
do
..do
Steel plates, universal mill,
li inch steel billets No. 2 mill.
263
do
do:
264
do
do
Steel rods No. 2 mill.
.do
Steel rods No. 3 miU.
266
do
do
Steel rods No. 4 mill.
..do
Steel rods No. 5 mill.
268
do
.do
Steel rods No. 6 mill.
do
Bright coarse wire, 8i and C.
do
common.
Bright coarse wire, 8iand C.extra.
271
do
.do
Bright coarse wire, 8J to 15i com-
272
273
274
do
do
do
mon.
Bright coarse wire, 8i extra.
Bright coarse wire, 15| to 20J
.do
.do
common.
Bright coarse wire, 8J to 20i extra .
275
do
Worcester (Central)
Edgar Thomson works
.do
Bright coarse wire, 8J to 16J com-
276
mon.
Bessemer iron.
277
278
279
Spiegel.
do
do
do
Bessemer rail ingots.
4470 UNITED STATES STEEL CORPOEAIIOX.
Schedule of mill cost sheets for the year 1906 — Continued.
No.
Company.
Departmant.
Product.
280
Camigie Steel Co
Edgar Thomson works
.do
281
do. - .
Rails, No. 1 mill.
282
do
do
Kails, No. 2 mill.
283
do... .
.do
Rails, No. 3 mill.
284
do
Duquesne works .
Bessemer iron.
285
.. ..do. . . ....
.do
Basic iron.
286
do
....do
287
.. ..do
.do
Open-hearth basic ingots.
288
do
. ..do
289
.. ..do
do
21-inch mill, large billets.
21-inch mill, spUce-bar shapes.
290
-do. .
• do
291
do
.do
292
- .do. . .
do
Do.
293
do
.do
294
.. ..do .
do
40-ineh blooming mill, trading.
40-inch blooming mill, rerolling.
14-inch mill, small billets.
295
do
, do
296
do... .
do
297
do
do
do
do
do
.do
13-inch mill, merchant bars.
298
299
.do
10-inch mill No. 2, merchant bars.
300
do . .
8-inch mill, merchant bars.
301
..do
22-inch mill, large rounds.
SpUce bars.
Bessemer iron.
302
do ...
303
do
304
do
.do
Spiegel.
305
do
do
....do
306
307
do
Bessemer billet ingots.
Open-hearth basic ingots. No. 1
plant (regular).
Open-hearth basic ingots, No. 'J
plant (regular).
Open-hearth basic ingots. No. 2
plant (Monel).
Open-hearth basic ingots, No. 3
plant (Monel).
Open-hearth basic ingots. No. 3
plant (regular).
Open-hearth basic ingots, No. 4
plant (regular).
40-inch mill, universal shapes.
oOS
do
do ....
.309
do
do
310
do
do
311
do
do
312
do
.do
313
do
do
314
do
do
315
do
do
3ie
do
do
.■58-inch blooming mill.
28-inch blooming mill.
33-inch cogging mill.
35-inch mill, structural shapes.
.33-inch mill, structural shapes.
23-inch mill, strnetural shapes.
30-inch slabbing mill.
317
do
do
318
do
do
319
do
do
320
do
do
321
do
do
322
do
do
323
do
do
324
do
do
140-inch sheared plate mill.
128-inch sheared plate mill.
84-inch sheared plate mill.
48-inch universal plate mill.
42-inch universal plate mill.
325
do
do
326
do
do
327
do
.do
.328
329
do
do
do
do
do
do
do
330
Howard axle works . . .
Axles forged only.
331
do
332
.do
333
do
Bessemer iron.
Basic iron.
Low. phos. iron.
9-inch mill, bars.
12-inch mill, bars.
15-lnch mill, bars.
72-inch mill, sheared plates.
8-inch mill, merchant products.
12-inch mill, merchant products.
17-lnch mill, angles.
18-inch mill, merchant products.
20-inch mill, merchant products.
No. 1 universal plate mill.
No. 2 universal plate mill.
Splice bars.
Basic iron.
Open-hearth basic ingots.
Open-hea^ih arid ingots.
40-ineh blooming mui.
28-inch biUet mill.
22-inch structural mill.
18-inch mill, flats.
334
do
do
335
336
do
do
do
Lower Union mills C Pitts-
burgh).
337
do
338
do
do
339 ]
do
do
340 1
do
Upper Union mills (Pitts-
burgh),
do
341
do
342
do
. .do
343
do
do
344
do
do..
345
do
-do
.346 i
347
do
do
...-do
. .do
348 1
do
349
350
....do
do 1
...do ;; ■ ■
-do
351
....do •
...do
352
do [
-do
353
do 1
-.-.do
354
....do 1
...do
UNITED STATES STEEL COKPOKATION.
Schedule of mill cost sheets for the year 1906 — Continued.
4471
No.
Company.
Department.
Product.
355
Carnegie Steel Co
356
do
367
do
.do
Open-hearth basic ingots.
40-inch blooming mill.
358
do
do
359
. .do.
South Sharon works
do
360
do
Open-hearth basic ingots, regu-
lar process.
Open-hearth basic ingots, Monel
process.
Blooming mill.
48-inch universal plate mill.
361
do
.do
362
do
....do
363
do
do
364
do
365
do
do . ...
Bessemer rail ingots.
Bessemer billet ingots.
Blooming mill.
Large billets.
Rails.
366
.. .do. - - .
do
367
do
do
368
.. ..do
do
369
do
do
370
.. ..do
do
Sheet bars
371
do
..do
Small billets.
372
373
do
.do.
New Castle works
do
Bessemer iron.
Bessemer billet ingots.
374
do
375
. ..do. .
do
376
do
377
. ..do
do
Bessemer biUet ingots.
378
do
.do
379
.. .do
do
18~inch mill, sheet bars and small
380
do
.do
billets.
381
do.
Bellaire works
skelp.
Bessemer iron.
382
.. ..do
.do
383
.do.
do ...
Blooming mills.
384
do
.do
385
.do.
Columbus works
. .do
Bessemer iron.
386
do
387
.do
do
Blooming mill.
388
do
do
389
.. .do
Sharon works
do
390
do
Open-hearth basic ingots.
391
do
.do
392
393
do
do
do
Niles works
27-inch mill, skelp and angles.
394
.do.
Do.
395
do
do
396
.do.
397
do
do
8-inch mill. No. 5, cotton ties.
398
.do.
.do
8-mchmill,Xo. 7,merchantprod-
399
do
do
ducts.
Do.
400
do.
.do
8-inch mill. No. 7, cotton ties.
401
do
8-inch mill, No. 8, merchant prod-
402
do
ucts.
S-inch mill , No. 9, merchant prod-
403
.do
ucts.
S-iach mill, No. 9, cotton ties.
404
.. .do
do
8-inch mill, No. 3, merchant prod-
405
do
.do
ucts.
10-inch mill, No. 3, merchant
406
do
do
products.
16-inch mill, No. 1, merchant
407
do
Clark works
products.
8-mch mill, No ?, merchant
408
do
..do
products.
8-inch mill. No. 3, merchant
409
do
...do
products.
9-mch mill, No. 4, merchant
410
do
do
products.
10-inch mill, No. 5, merchant
411
do
.do
products.
12-inch mill. No. 5, merchant
412
do
.do
products.
20-inch mill, No. 7, merchant
413
do
McCutcheon works
products.
8-mch mill. No. 1, hoops, etc.
do
do
415
416
do
.do
products.
8-inch mill, No. 3, cotton ties.
...do
8-inch mill. No. 2, unfinished ties.
10-inch mill. No. 4, rails, light.
do
418
419
do
.do
10-inch mill. No. 4, merchant
do
do
products.
16-inch mill, No. 3, angles.
4472
UNITED STATES STEEL. COEPOKATION.
Schedule of mill cost sheets for the year /906— Continued.
No.
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
Company.
Beoartment.
Carnegie Steel Co
do
do
do
.do..
.do..
.do..
.do..
.do.
.do.
.do.
.do.
.do.
UcCutcheon works .
do
Monessen works
do
Product.
.do.,
.do.,
-do.,
.do.,
.do.
.do.
.do.
..do.
Greenville works.
....do
....do
Upper Union
(Youngs town).
do
works
.do.
.do.
.do.
.do.
.do.
.do.
Lower Union
(Youngstown).
do
works
.do.
.do.
.do.
.do.
16-incli mill, No. 3, light rails.
16-inch mill. No. 3, light rails.
8-inch mill, No. 1, hoops.
lO-inch-20-mch mill, No. 2, skelp,
etc.
7-inch mill, No. 3, bars and
bands.
8-inch mill, No. 1, bars and
bands.
10-lnch mill. No. 2, bars and
bands.
7-inch mill. No. 1, merchant
products.
8-mch mill. No. 2, merchant
products.
8-mch mill. No. 3, merchant
products.
10-rnch mill. No. 6, hoops.
10-inch mill, No. 6, cotton ties.
10-inch mill. No. 7, merchant
products.
12-inch mill, No. 6, merchant
products.
12-inch mill. No. 6, merchant
products.
8-mch mill. No. 2, merchant
products.
8-inch mill. No. 4, merchant
producte.
8-mch mill. No. 5, merchant
products.
10-inch mill, No. 6, merchant
products.
16-inch mill. No. 7, merchant
No!
roducts.
3, Muck bar.
[Returned Feb. 17,1910.1
No.
Description.
P. M.78.
General profit and loss account of American Sheet & Tin Plate Co. (including Sharon
Tin Plate and Canton Roll Machine Co.'s) for year 1905.
Sdiedules and statistical statements of American Bridge Co. for the year 1905.
[Returned Feb. 17, 1910.)
No.
P. M.W
P. M.83
Description.
Combined general profit and loss account of American Bridge Co. (N. J.), .\merlcan
Bridge Co. (N. Y.), A. & P. Roberts Co., Empire Bridge Co., Koken Iron Works, and
New Jersey Iron i Steel Co. tor year 1905.
Sheet 1. Summary of shipments and sales of rolling-mill products.
Sheet 2. Schedule of monthly shipments of products of the 23-inch, 20-inch, ami 12-inch
mills at Pencoyd works.
Sheet 3. Completed axle contracts.
Schedules and statistical statements for the year 1905.
[Returned Pel). 17, 1910.]
No.
P. M.S4.
P. M. Si.
Description.
General profit and loss account of National Tube Co. for year 1905.
Sheet 1. Summary of shipments and sales.i
Sheets 2, 3. Schedules of monthly shipments to subsidiary companies.'
Sheets 4, 5, and 6. Schedules of monthly shipments and sales to outside customers.'
' For National Tube Co. for year 1905.
UNITED STATES STEEL COEPOEATION. 4473
Schedules and statistical statements of Western Tube Co. for the year 1905.
[Returned Feb. 17, 1910.)
Description.
P.M. 86
P.M. 87
I.
General proflt and lo.5s account of Western Tube Co. for year 1905.
Slieet 1. Summary of shipments and sales. ^
Slieet 3. Schedule of monthly shipments and sales to outside customers.'
1 For Western Tube Co. lor year 1905.
Schedules of iron-ore -mine cost sheets for the year 1905.
[Ketumed Feb. 17, 1910.)
No.
Name of mine.
NO.
O20
Name of mine.
01
Mansfield.
Chandler.
02
Michigan.
0 21
Adams.
03
Riverton.
0 22
Spruce.
04
Hartford.
0 23
05
Norrie-Aurora.
0 24
Hull.
on
TUden.
0 25
Burt.
0 7
Pioneer.
0 28
Rust.
08
Savoy.
0 27
Duluth.
09
Zenith.
0 2S
Sellers.
OlO
Mountam Iron.
0 29
Glen.
Oil
Higgins.
O30
Fayal.
012
Stephens.
0 31
Genoa.
013
Virginia.
0 32
Soudan.
0 14
Myers.
0 33
Atlantic.
0 16
Monroe-Tener.
0 34
Chisholm.
Olti
Morris.
0 35
Clark.
017
Lake Superior Hard (Oliver).
0 36
Aragon.
OlS
Lake Superior Soft (Oliver).
Queen (Oliver).
0 37
Chapin.
0 19
0 38
Iron Ridge.
Schedules and statistical statements for the year 1905.
[Returned Feb. 19, 1910.]
No.
Description.
P. 0.12
P. 0.13
Combined general proflt and loss account for all iron-ore mining companies for year 1905
Sheet 1. Summary of deliveries of iron ore by all iron-mining companies.
Sheet i.'}Details of deliveries of ore by Oliver Iron Mining Co.
Sheet 4. Details of deliveries of ore by Lake Superior Consolidated Iron Mines.
Sheet 5. Details of deliveries of ore by-
Sharon Ore Co.
Minnesota Iron Co.
Chapin Mining Co.
Champion Iron Co.
Sheet 6. Details of deliveries of ore by-
American Mining Co.
Donora Mining Co.
National Tube Co.
Winthrop Iron Co.
Schedules and statistical statements of Shelby Steel Tube Co. for the year 1905.
[Returned Feb. 17, 1910.]
No.
P. M. 8«.
P. M. S9.
Description.
General profit and loss account of Shelby Steel Tube Co. for year 1905.
Sheet 1. Summary of shipments and sales.'
Sheet 2. Schedule of monthly shipments and sales to subsidiary companies and outside
customers.'
1 For Shelby Steel Tube Co. for year 1905.
4474
UNITED STATES STEEL COEPOEATION.
Schedules and statistical statements for year 1905.
[Returned Feb. 18, 1910.]
No.
P. U. S. 10
P. U.S. *U...
Description.
General profit and loss account of United States Steel Corporation (including Federal
Steel Co.) lor year 1905. , , tt ■.- j o* * oj. i /i
Classified .statement of administrative and general expenses of United States Steel Co^
poration (including Federal Steel Co.) for year 1905.
Schedule of iron-ore mine cost sheets for the year 1906.
No.
Name of mine.
No._
Name of mine.
01
Mansfield.
0 21
Fayal.
02
Michigan.
0 22
Adams.
03
Riverton.
0 23
Spruce.
04
Hartford.
0 24
Genoa.
05
Norrie-Aurora.
0 25
Hull.
OH
Tilden.
0 2c;
Rust.
07
Pioneer.
0 27
IluU-Rust.
OS
Savoy.
0 28
Burt.
09
Zenith.
0 29
Pillsbury.
OlO
Mountain Iron.
O30
Glen.
Oil
Virginia.
0 31
Sellers.
0 12
Higgins.
0 32
Duluth.
013
Monroe-Tener.
0 33
Atlantic.
0 14
Morris.
0 34
Chisholm.
0 15
Myers.
0 35
Clark.
016
Wintred.
0 3(i
Aragon.
0 17
Lake Superior (hard).
0 37
ChaplD.
0 18
Lake Superior (soft).
0 38
Champion.
Chandler.
0 19
Queen (Oliver).
0 39
O20
Soudan.
O40
Iron Ridge.
Schedule of cost sheets for the year 1905.
[Returned Feb. 19, 1910.]
No.
Company.
Department.
Product.
C16
H C Frick Coke Co
All plants
Coal.
C17
do
..do -.
Coke.
•C 18
do
Do.
United States Coal & Coke
Co.
do
do
Do.
C 19
do
C20
Sharon Coke Co
do
Do.
C21
do
South Sharon plant
By-product coke.
Coal.
C22
C23
National Mining Co
-do
Do.
C24
River Coal Co
do
Do.
Schedules and statistical statements for the year 1905.
[Returned Feb. 19, 1910.)
No.
P. C. 9.
P. C. 9A..
P. CIO...
Description.
General profit and loss account for year 1905 of the following companies;
H.C: Frick Coke Co.
Hecia Coke Co.
United States Coal & Coke Co.
Sharon Coke Co.
Ingleside Coal Co.
National Mining Co.
River Coal Co.
Republic Coke Co.
Particulars as to cost of shipments per profit and loss and coke tonnage.
Sheet 1. Details of miscellaneous profit and loss for year 1905 of the following companies;
H. C. Frick Coke Co.
Hecla Coke Co.
United States Coal & Coke Co.
Sharon Coke Co.
National Mining Co.
River Coal Co.
UNITED STATES STEEL COEPOEATION.
Schedules and statistical statements for the year 1905.
[Returned Feb. 17, 1910.]
4475
No.
Description.
P. M. 90..
P. 11.92..
General profit and loss account of Carnegie Steel Co. for year 1905.
General profit and loss account of the National Tube Co. for year 1905.
[Returned Feb. 19, 1910.]
No.
Description.
P. 0.14..
Combined general profit and loss account for all iron-ore mining companies tor year 1906.
Washington, D. C, May 2S, 1908.
Received of United States Steel Corporation statement showing classification of
contingent and miscellaneous operating fund balances at close of each year, 1902 to
1907, inclusive (two sheets), together with three-page memorandum explaining the
purpose of and the method of raising and disbursing said funds, being m answer to
question 31 of schedule submitted.
The statements above referred to are received on the understanding that they are
merely loaned to me for my inspection and consideration; that I will not make literal
copies thereof for the files of any department of the United States Government, and
that said statements will be returned to the United States Steel Corporation as soon
as I have completed inspection of the same, and, in any event, prior to July 1, 1908.
Wm. H. Baldwin,
Special Examiner.
Schedules and statistical^ statements for the year 1906.
[Returned Feb. 18, 1910.]
No.
Description.
P. U. S. 12.
P. U.S. 13.
General profit and loss account of United States Steel Corporation (includingFederal
Steel Co.) for year 1906.
Classified statement of administrative and general expenses of United States Steel Cor-
poration (including Federal Steel Co.) for year 1906.
[Returned Feb. 18, 1910.]
No.
Description.
P. T. 17.
General profit and loss accou^it for year 1906 of the following companies:
The Duluth & Iron Range Railroad Co.
Duluth & Iron Range Railroad Co.
Duluth, Missabe & Northern Railway Co.
Elgin, Joliet & Eastern Railway Co.
Chic^o, Lake Shore & Eastern Railway Co.
Bessemer & Lake Erie Railroad Co.
Union Railroad Co.
4476
UNITED STATES STEEL COBPOEATION.
Schedules and statistical staiemenls for the year i906— Continued.
[Returned Feb. 18, 1910.)
No.
P. T. 18.
Description.
General profit and loss account lor year 1906 of the loUowmg companies:
Northern Liberties Railway Ck).
Pittsburgh & Ohio Valley Railway Co.
Newburg & South Shore Railway Co.
Waukegan & Mississippi Valley Railway Co.
Elwood, Anderson & Lapel Railway Co.
Etna & Montrose Railroad Co.
Youghlogheny Northern Railway Co.
South West Connectmg Railway Co.
McKeesport Connecting Railway Co.
Benwood & Wheeling Connecting Railway Co.
Johnstown & Stony Creeli Railway Co.
Lake Terminal Railway Co.
Connellsville & Monongahela Railway Co.
Pencoyd & Philadelphia Railroad Co.
St. Clair Terminal Railroad Co.
Donora Southern Railroad Co.
Mercer Valley Railroad Co.
Pennsylvania & Lake Erie Dock Co.
No.
[Returned Feb. 17, 1910.]
Description.
P. M. 94..
General profit and loss account of United States Steel Products Export Co. for year 1906.
No.
Schedules and statistical statements for the year 1906.
[Returned Feb. 18, 1910.]
Description.
P. T. 19...
P.T.20...
Sheet 1. General profit and loss account of Pittsburgh Steamship Co. for the year 1906.
Sheet 2. Schedule of operating expenses and statistics of Pittsburgh Steamship Co. for
year 1906 .
General profit and loss account of Pittsburgh & Conneaut Dock Co. (or year 1906.
[RetumedFeb. 19, 1910.]
No.
Description.
P. Misc. 5.
General profit and loss account for year 1906 of the following companies:
Carnegie Natural Gas Co.
Union Supply Co.
United Supply Co.
Mount Pleasant Water Co.
Trotter Water Co.
Standard Water Co.
Carnegie Land Co.
Coimeaut Land Co.
American Land Co.
Sharon Land Co.
Girard Land Co.
Clairtou Land Co.
The Columbus Stone Co.
Farmers' Trading Co.
Pittsburg Limestone Co.
Edgar Zinc Co.
Standard Supply Co.
St. Clair Limestone Co.
Coal & Limestone Supply Co.
Mahoning Limestone Co.
UNITED STATES STEEL OOEPOBATIOlir.
4477
Schedules and statistical statements of Shelby Steel Tube Co. for the year 1906.
[Returned Feb. 17, 1910.)
No.
P.M.
P.M.
Description.
General profit and loss account of Shelby Steel Tube Co. for year 1906.
Sheet 1. Summary of shipments and sales.i
Sheet 2. Schedule of monthly shipments and sales to subsidiary companies. '
Sheet 3. Schedule of monthly shipments and sales to outside customers, i
I For Shelby Steel Tube Co. for year 1906.
Schedules and statistical statements of Western Tube Co. for year 1906.
[Hetumed Feb. 17, 1910.]
No.
P.M. 97
P. M. 98
Description.
General profit and loss account of Western Tube Co. for the year 1906.
Sheet 1. Summary of shipments and sales. '
Sheet 2. Schedule of monthly shipments and sales to outside customers. '
> For Western Tube Co. for year 1906.
[Returned Feb. 17, 1910.]
No.
P.M. 99..
P. M. 100.
Description.
General profit and loss account of American Steel & Wire Co. for year 1905.
Sheet 1. Summary of shipments and sales to subsidiary companies and outside custom-
ers.'
Sheet 2. Schedule of monthly shipments to subsidiary companies. ^
Sheets 3, 4, 6, 6, 7, 8, 9, 10, 11, 12, 13. Schedule of monthly shipments to domestic and
export customers. '
' For American Steel & Wire Co. for year 1906.
[Returned Feb. 17, 1910.]
No.
Description.
P.M. 101...
P.M. 102...
General profit and loss account of Union Steel Co. for year 1906.
Sheet 1. Summary of shipments and sales to subsidiary companies and outside custom-
ers for year 1906, from departments.
Sheets 2, 3. Details of Union Steel Co., operated by Carnegie Steel Co.
Schedules and statistical statements of Clairton Steel Co. for year 1906.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 103..
P.M. 104..
General profit and loss account of Clairton Steel Co. for the year 1906.
Sheet 1. Summary of shipments and aales.i
Sheet 2. Schedule of monthly shipments to subsidiary companies.'
Sheet 3. Schedule of monthly shipments and sales to outside customers.'
» For Clairton Steel Co. for year 1906.
31572— No. 53, pt. 3—12 ^11
4478
UNITED STATES STEEL COEPOEATION.
Schedules and statistical statements for the year 1906.
[Eetumed Feb. 17, 1910.]
No.
Description.
P. M. 105..
P. M. 106..
General profit and loss account of National Tube Co. tor year 1906.
Sheet 1, Summary of sbipments and sales.i
Sheets 2 and 3. Schedules of monthly shipments to subsidiary companies.'
Sheets 4 and 5. Schedules of monthly shipments and sales to outside customers.'
> For National Tube Co. for year 1906.
Schedules and statistical statements of American Bridge Co. for year 1906.
[Returned Feb. 17, 1910.1
No.
De.scription.
P.M. 107
P.M. 108
Combined general profit and loss account of American Bridge Co. (N. J.), American Bridge
Co. (N. Y.), A. & P. Roberts Co., Empire Bridge Co., Koken Iron Works, and New Jer-
sey Iron & Steel Co. for year 1906.
Sheet 1. Summary of shipments and sales of rolling-mill products.
Sheets 2 and 3. Schedule of monthly shipments of products on the 23-inch| 20-inch, and
12-inch mills at Pencoyd Works.
Sheet 4. Completed axle contracts.
Schedules and statistical statements of Lorain Steel Co. for year 1906.
(Returned Feb. 17, 1910.]
No.
Description.
P. M. 109..
P. M. 110..
P. M. 111..
P. M. 112..
General profit and loss account of the Lorain Steel Co. for year 1906.
Sheet 1. Summary of shipments and sales.'
Sheet 2. Shipments to customers, domestic, of product of the National Tube Co. of Ohio.'
Sheet 3. Shipments to customers, domestic and export, of product of the Lorain Steel Co.'
General profit and loss account of Universal Portland Cement Co. for last three months
of 1906.
Schedule of monthly shipments and sales for three months ending Dec. 31, 1906.
' For the Lorain Steel Co. for year 1906.
Schedules and statistical statements of American Tin & Sheet Plate Co. for year 1906.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 113..
P. M. 114..
General profit and loss account of American Sheet & Tin Plate Co. (including Sharon Tin
Plate Co., Canton Roll & Machine Co.. and Mercer Sheet Mill of Union Steel Co.) for
year 1906.'
Sheet 1. Summary of shipments and sales to outside customers.'
Sheets 2 and 3. Schedule of monthly shipments and sales to outside customers.'
' For American Sheet & Tin Plate Co., Sharon Tin Plate Co., Canton Roll & Machine Co., and Mercer
Sheet Mill of Union Steel Co. lor 1908.
Schedules and statistical statem.ents of the National Tube Co. for year 1906.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 115..
P. M. 116..
General profit and loss account of the National Tube Co. for year 1906.
Sheet 1. Summary of shipments and sales.'
Sheets 2, 3, and 4. Schedules of monthly shipments to subsidiary companies.'
Sheets 5 and 6. Schedules of monthly shipments and sales to outside customers.'
'For the National Tube Co. for year 1906.
UNITED STATES STEEL CORPORATION.
4479
Schedules and statistical statements of Carnegie Steel Co. for year 1906.
[Eeturned Feb. 17, 1910.]
No.
Pesoription.
P. M.117..
P. M. 118..
General profit and loss account of Carnegie Steel Co. for year 1906.
Sheet 1. Summaiy of shipments and sales to subsidiary companies and outside customers .1
Sheets 2, 3, 4, and 6. Schedules of monthly shipments to siibsidlary companles.i
Sheets 6, 7, 8, 9, 10, 11, 12. and 13. Schedules of monthly shipments and sales to domestic
and export customers.^
I For Carnegie Steel Co. for year 1906.
[Returned Feb. 19, IQJO.]
No.
Description.
P. C. 11...
P.C.UAandB,
P C.12
General profit and loss account for year 1906 of the following companies:
H. C. Frick Coke Co.
Hecla Coke Co.
United States Coal & Coke Co.
Sharon Coke Co.
Ingleside Coal Co.
National Mining Co.
River Coal Co.
Republic Coke Co.
Particulars as to cost of shipments per profit and loss and coke tonns^es.
Sheet 1. Details of miscellaneous profit and loss for year 1906 of the foUowing companies:
H. C. Flick Coke Co.
Hecla Coke Co.
United States Coal & Coke Co.
Sharon Coke Co.
National Mining Co.
Slver'CoalCo.
Republic Coke Co.
Sheet 2. Details of shipments of coke and coal by months during 1908 by H. C. Frick
Coke Co.
Sheet 3. Details of shipments of coke by months during 1906 by Hecla Coke Co.
Sheftt 4. Details of Shipments of coke and coal by months during 1906 by United
States Coal & Coke Co.
Sheet 5. Details of shipments of coal by months during 1906 by Sharon Coke Co.
Sheet 6. Details of shipments of coal by months during 1906 by Ingleside Coal Cp.
Sheet 7. Details of shipments of coal by months during 1906 by National Mining Co.
Sheet 8. Details of shipments of coal by months during 1906 by River Coal Co.
Schedule of cost sheets for the year 1906.
[Returned Feb. 19, 1910.]
No.
Company.
l)epartment.
Product.
C-2S
H. C. Frick Coke Co
g^e.
C-26
...do
C-27
Hecla Coke Co
do
Do.
C-28
United States Coal & Coke Co
do
do
-too!
C-29
do
Coal.
do
Do.
C-30
do
South Sharon plant
By-product coke.
C-31
C-32
National Mining Co
■(io
Do.
0-33
River Coal Co
do
Do.
Schedules and statistical statements of Illinois Steel Co. for the year 1906.
[Returned Feb. 17, 1910.)
No.
Description.
P.M. 119....
P.M. 120....
General profit and loss account of Illinois Steel Co. for year 1906.
Sheet 1. Summary of shipments and sales.i
Sheet 2. Schedules of monthly shipments to subsidiary companies.^
Sheet 2. Schedules of monthly shipments to subsidiary companies.i
Sheets 4, 5, 6, 7, 8. Schedule of monthly shipments and sales to outside customers.'
1 For lUlnois Steel Co. for year 1906.
4480 UNITED STATES STEEL COEPOEATION.
Schedules and statistical statements of American Steel & Wire Co. for the year 1906.
[Returned Feb. 17, 1910.]
No.
Description.
P. M. 121.
P. M. 122.
General profit and loss account of American Steel & Wire Co. for year 1906.
Sheet 1. Summary of sliipments and sales to subsidiary companies.^
Sheet 2. Summary of shipments and sales to outside customers.*
Sheets 3, 4, 5. Schedules of monthly shipments to subsidiary companles.i
Sheets 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16. Schedule of monthly shipments to domestic and
export customers.!
1 For American Steel & Wire Co., 1906.
Schedules and statistical statements for the year 1902.
For the year 1902:
Summary of general profit and loss accounts of all companies.
Summary of general profit and loss accounts of manufacturing companies.
Summary of gross earnings of the transportation companies.
For year 1903:
Summary of general profit and loss accounts of all companies.
Summary of general profit and loss accounts of manufacturing companies.
Summary of gross earnings of the transportation companies.
Book 7.
Received of United States Steel Corporation statements showing comparative
analyses of ores shipped during years 1902 to 1908, inclusive, giving division between
Bessemer and non-Bessemer ores and by iron ore ranges, i. e., Mesabi Range, Ver-
million Range, Gogebic Range, Marquette Range, Menominee Range, together with
recapitulation of same.
Received of United States Steel Corporation schedules numbered 1 to 29, inclusive,
showing detailed appraised valuation of various properties owned by subsidiary com-
panies of United States Steel Corporation, as listed below, viz:
Schedules 1 to 5. Carnegie Steel Co. properties.
Schedules 6 to 7. Illinois Steel Co. properties.
Schedule 8. Clairton Steel Co. properties.
Schedule 9. Union Steel Co. properties.
Schedules 10 to 13. National Tube, the National Tube and Shelby Steel Tube Co.
properties.
Schedules 14 to 17. American Sheet & Tin Plate Co. properties.
Schedules 18 to 20. American Steel & Wire Co. properties.
Schedule 21. American Bridge Co. properties.
Schedule 22. The Lorain Steel Co. and Edgar Zinc Co. properties.
Schedules 23 to 25. Properties of coal and coke companies.
Schedule 26. Natural gas properties.
Schedule 27. Limestone properties.
Schedules 28 to 29. Miscellaneous outside properties (so called).
March 19, 1909.
Mr. W. J. Filbert,
United States Steel Corporation, 71 Broadway, New York City.
Dear Sib: The copy of the current installment of the serial story of the operations
of the corporation which you so kindly sent is received, and I thank you for it. I
have also received a copy with Judge Gary's card, for which I wish you would thank
him.
I appreciate the work involved in getting this out.
Very truly, yours, Wm. H. Baldwin,
Special Examiner.
UNITED STATES STEEL COEPOBATION. 4481
Washington, D. C, February U, 1909.
Received of the United States Steel Corporation statements showing estimates of
the iron ore resources and estimates of the coal resources of the Tennessee Coal, Iron &
Railroad Co. as at June 1, 1908.
March 19, 1909.
Mr W. J. FiLBEBT,
Comptroller United States Steel Corporation, 71 Broadway, New YorTc City,
Deak Sib: The copy of the current installment of the serial story of the opera-
tions of the corporation, which you so kindly sent, is received, and I thank you for it.
I have also received a copy with Judge Gary's card, for which I wish you would thank
him.
I appreciate the work involved ia getting this out.
Wm. H. Baldwin,
Special Examiner.
"Washington, D. C, April U, 1909.
Received of the United States Steel Corporation statement showing appraisal of
iron ore and timber properties owned or controlled by the subsidiary companies of the
United States Steel Corporation as of January 1, 1908.
Washington, D. C, February 11, 1910.
Received of the United States Steel Corporation memorandumsJNos. 1 to' 44, inclu-
sive, on yellow sheets, showing bases of sliding scale royalty' payments on leases of
various iron ore properties owned by subsidiaiy companies'ol United States^Steel
Corporation .
Book 8.
Febbuaky 23, 1910.
Mr. W. J. Filbeet,
Comptroller United States Steel Corporation, 71 Broadway, New York City.
Deab Sib: By registered mail I am sending you to-day two packages containing
wage schedules, Biwabik Mining Co. statements, and other miscellaneous statements
which were submitted to us at various dates by the corporation with the understanding
that they would be returned, as shown by receipts given imder the dates noted, as
follows:
I inclose three forms of reciepts for these in duplicate. Please sign and return the
originals, retaining copies for your file.
As I have already stated in returning certain cost sheets and statements received the
same way, the information contained m these has been used by the bureau in connec-
tion with that received from others in making up statements for the report, and I
desire to have it clearly understood that they will be preserved by you, so that they
may be referred to if occasion arises.
I return them now because I do not expect to be obliged to refer to them further, but
I want to be able to if it becomes necessary to do so.
In acknowledging receipt of them will you kindly write me that they will be pre-
served in this way? . .
Regretting that it has been necessary to retam them so long, and awaitmg your
reply, as requested above, I am,
Very truly, yours, Wm. H. Baldwin,
Special Examiner.
4482
UNITED STATES SIEEL COEPOEATION.
5
5
UNITED STATES STEEL CORPOBATION.
4483
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X
No. 53
(IN POTJB PARTS)
PART IV
UNITED STATES STEEL CORPORATION
HEAKING-S
BEFORE THE
COMMITTEE ON INVESTIGATION OF UNITED
STATES STEEL CORPORATION
HOUSE OF REPRESENTATIVES
WEDNESDAY, FEBRUARY 28, 1912
©
WASHINGTON
GOVERNMENT PRINTING OFFICE
19U
REPORT OF
FAKQUHAR J. MacRAE
TO CHAIRMAN OF SPECIAL COMMITTEE TO INVESTIGATE
VIOLATIONS OF THE ANTITRUST ACT OF
1890, AND OTHER ACTS.
IN FOUR PARTS:
Part IV— INDEX.
4485
ABBKEVIATIONS.
USSC is United States Steel Corporation.
ASWOONJ is American Steel & Wire Co. of New Jersey.
CSCO is Carnegie Steel Co.
AMBCONJ is American Bridge Co. of New Jersey.
HCFCCO is H. 0. Frick Coke Co.
Gen. Man. Sal. is General Managers of Sales Minutes.
TCI is Tennessee Coal, Iron and Railroad Co.
Ex. Com. is Executive Committee. .
Fin. Com. is Finance Committee.
Dii. is Directors.
T. H. ia Tariff Hearings of Ways and Means Committee referred to here.
Most of the abbreviations are self-explanatory.
_ In references to the testimony taken in the hearings, the number of the volumes is
given first, followed by the page, as e. g. : 2^ — 1817, which refers to volume $4, page
1817.
4487
SUBJECTS.
ADVEETISING—
advantages to be obtained from publicationB through
control of advertising suggested Gen. Man. Sal. Min.,
Mar., 1902;
Apr., 1902;
May, 1902.
committee of ASWCO to spend $100,000 ASWCO Min. Ex. Com.,
June 5, 1899.
general advertising bureau again suggested Gen. Man. Sal. Min.,
July 17, 1907.
bureau recommended, not for bribery, but general
advantage Gen. Man. Sal. Min.,
Aug. 21, 1907.
bureau not commended by Corey Gen. Man. Sal. Min.,
Oct. 23, 1907.
control to be left with general managers of sales asso-
ciation and each case to be dealt with separately. . . Gen. Man. Sal.,
Mar. 18,1908;
Apr. 5, 1908.
Dickson, who had been handling it, suggested a com-
mittee of the general sales managers to handle it. . . Gen. Man. Sal. Min.,
June 17, 1909.
application of American Engineer and Railroad Jour-
nal denied Gen. Man. Sal. Min.,
July 21, 1909.
matters to come before general sales managers for
approval Gen. Man. Sal. Min.,
Sept. 15, 1909.
Railway and Locomotive Engineer Journal applica-
tion denied Gen. Man. Sal. Min.,
Nov. 17, 1909.
suggested to have Iron Age and Iron Trade Review
published jobbers' instead of manufacturers' whole-
sale prices Gen. Man. Sal. Min.,
Nov. 17, 1909.
men of various companies to belong to advertising
associations only as individuals Gen. Man. Sal. Min.,
Dec. 15, 1909.
men of subcommittees to meet together from time to
time Gen. Man. Sal. Min.,
Dec. 15. 1909.
for western papers of part of eastern advertising Gen. Man. Sal. Min.,
Apr. 20, 1910.
in farm journals instead of Iron Age Gen. Man. Sal. Min.,
Apr. 20, 1910.
in Iron Age and Iron Trade Review suggested as they
have some influence Gen. Man. Sal. Min.,
Jan. 19, 1910.
local advertising in Ohio Valley Manufacturer left
to Carnegie & Tube Cos Gen. Man. Sal. Min.,
Jan. 19, 1910.
applications granted for advertising Gen. Man. Sal. Min.,
Sept. 20, 1911.
application of American Railway Review to be con-
sidered Gen. Man. Sal. Min.,
May 19, 1908.
4489
4490 UNITED STATES STEEL COKPORATION.
ABMOBr-
competitors would have to compete with USSC and
Bethlehem, who got nickel at 5 cents less per
pound 25—1633-4.
Gary does not know of contracts excluding competi-
tion in armor plate -^ — 81-82.
exclusive rights in United States to use Richardson
process of manufacturing armor plates, from United
Process Co. (Ltd.), London, and $250,000 and
$30 per ton royalty, in letter from George Kep-
pel; referred to chairman and president with
power USSC. Fin. Com.,
Feb. 1, 1910.
contract at 90s. a ton, of which 1 per cent to be paid
Harvey United Steel Co. and 20 per cent of remain-
der as compensation to Hunsicker & Fox; and also
continuation of negotiations with Schneider and
Krupp USSC. Fin. Com.,
May 31, 1910.
ASSUMPTION OF DEBTS, LOSSES, AND EXPEND-
irUBES AND INTER-COMPANY CONCESSIONS
or PBOFIT—
Carnegie Steel Co. of Pennsylvania authorized to
charge
Carnegie Steel Co. of New Jersey, $445,061.66 "being
that portion of its authorized write-off of construc-
tion and capital expenditures Dec. 31, 1904, in
excess of its surplus available for that purpose " CSCO. Dir.,
June 19, 1905.
(Note.— CSCONJ operates CSCO PENN. at
agreed rental. See CSCO Min., Mar. 27, 1905,
and Dec. 26, 1905.)
$236,000 recommended for extension of Universal
Portland Cement Co USSC. Fin. Com.,
Nov. 10, 1908.
(Note. — 100 per cent of the net income of this
Cement Co. is divided between ILLS ST CO.
and Carnegie Steel Co., except expenses and
$25,000 per annum. The Cement Co. was
unable to finance this extension itself, in view
of this disposition of its income.)
letter instructing auditors how to prepare tax re-
turns for corporations contains the following USSC. AUD. MIN.,
Letter Feb. 10, 1910, of
W.J. Filbert.
"Question: In case a parent company absorb an
operating loss or deficit arising from transactions on
income account during the year of one of its sub-
sidiaries, can this loss be deducted in parent com-
panies' tax return?
Answer: I think the amount of the deficit of the sub-
sidiary can be shown as a loss of the parent company
and as income of the subsidiary, provided there is
no obligation on the part of the subsidiary company
to return the amount of this deficit to the parent
company and no entries on the books of either com-
pany to make it appear as though such an obligation
existed. If there be no such obligation, the matter
should be treated as stated in the reply to the suc-
ceeding question."
cost of sheets and tin plate would hardly permit ex-
port, but there is profit in corporations in sheet bars
used, as well as the pig iron, and the ore; and con-
cession will be asked from corporation to permit
export of sheets and tin plate Gen. Man . Sales. Min.,
July, 1903.
UNITED STATES STEEL COBPOEATION. 4491
ASSUMPTION OF DEBTS, LOSSES, AND EXPEND-
ITUBES AND INTEB-COMPANY CONCESSIONS
OP PB OUT— Continued.
$1.50 per net ton to be paid coke company and Coke
Co. to pay 5 per cent "on the total amount received
from the coke; this interest to be semiannually.
This is virtually the coke company carrying the in-
vestment, while the steel company owns the coke,
and it is a more favorable arrangement than that
recommended by the board CSCO Dii-,,
June 11, 1901.
Carnegie Co. make contract to supply 51 per cent of
materials of Am. Bridge Co. at more advantageous
terms than CSCO would sell others Carnegie Co. Dir. ,
Apr. 23, 1900.
Am. Bridge Co. granted special terms for goods sold to
it Gen. Man. Sal. Min.,
July, 1901.
Troy Steel Products Co. operating deficit $17,028.69
assumed by ASWC ASWC Dir.,
Mar. 20, 1906.
5 per cent below lowest market price to be quoted to
constituent companies applicable to such products
as are used in any work for reshipment to the trade. Gen. Man. Sal. Min.,
May 2, 1902.
i per cent discount to constituent companies abro-
gated and lowest market price regardless of quantity
to be quoted Gen. Man. Sal. Min.,
June 18, 1902.
preference to constituent company goods "irrespec-
tive of cost" Gen. Man. Sal. Min.,
May 15, 1907.
preference "to constituent company goods in every
case where they can be used," recommendation
that this be done "to the fullest extent that is
possible" Gen. Man. Sal. Min,,
June 18, 1907.
assumption of debts and expenses and concession
of profits resolved that: (1) All materials made
by the corporation must be pm'chased within the
corporation; (2) prices must the lowest named to
the most-fa vorea customer regardless of quantity;
(3) no quotation shall be asked on such material
from outside parties, etc Gen. Man. Sal. Min.,
Sept. 21, 1904.
"a special price on raw material to the finishing
properties on account of export business be cov-
ered by a concession made the finishing company
on a tonnage of raw material equivalent to the ton-
nage of finished goods exported each month, plus
the actual loss in prices of manufacture when the
price abroad was such that the finishing company
was forced to sell its output at less than a fair margin
of profit" Gen. Man. Sal. Min.,
May 22, 1901.
"price to be charged for raw material to the finishing
company should be so adjusted as to enable silch
company to increase its export business on finished
material to a maximum " Gen. Man., Sal. Min.,
May 22, 1901.
assumption debts and expenses, "conclusion reached
to tax the different companies a commission of 3 per
cent" for expenses of export company; "and any
surplus over and above the actual requirement? to
be rebated to the different companies predicated
on the value of the tonnage sold for them" Gen. Man. Sal. Min.,
Oct. 7, 1903.
4492 UNITED STATES STEEL CORPORATION.
ASSUMPTION or DEBTS, LOSSES, AND EXPEND-
ITtTEES AND INTEE-COMPANY CONCESSIONS
or PBOFIT— Continued.
"export company's charge to constituent companies
for handling their export business will be 2 per cent
instead of 3 per cent, it having been found that this
will be sufficient under present conditions although
later it may be necessary to go back to the old
basis" Gen. Man. Sal. Min.,
Mar. 23, 1904.
Carnegie Steel Co. of New Jersey bought stock in 18
ginning companies who favored scjuare bale, which
stock is to be sold at great reduction CSCONJ.
June 8-15, 1909.
AXLES—
competition is extraordinary because competitors
have to buy billets at a figure that does not permit
of more than $2 for converdion CSCO Dir.,
July 13, 1904.
BIEMINGHAM—
close proximity of ore, coal, and limestone, and small
cost of freight for assembling i, p. 18.
product does not go to eastern seaboard T. H., vol. 2, p. 1696.
in West and southwest has diSerential over imports. . . T. H., vol. 2, p. 1696.
BLAST FURNACES—
blast furnace — theory and mode of operation ex-
plained by Perin 15 — 980-1.
Chicago furnace made 500,000 to 800,000 tons without
relieving i — 35.
no market improvement in 10 years 1 — 36.
cost of one furnace at Mingo, $1,090,000 USSC Fin. Com.,
Mar. 7, 1905.
cost, $1,500,000, for modem furnace T. H., vol. 21, p. 1659.
BOSTON NEWS BtTEEAU—
Aug. 5, 1911, to effect that separate holdings in large
corporations have become smaller in amount, show-
ing a larger number of holders of small holdings. . . 2i — 1573.
BRUSSELS CONFERENCE—
attended by Schwab, but no international agreement
was spoken of jg — 1320.
statement in Ironmonger from German newspaper
that the purpose was to fix prices or divide territory
is false 75—1332-3.
Ironmonger (English trade paper), quoting from
Kheinisch-Westfalische Zeitung to the effect that
the object of the Brussels conference was to agree
as to prices, etc., and that questions of wages and
labor conditions could not l3e practically made
uniform because of the varying conditions in differ-
ent parts of the world n — 1272-3.
CANADA—
committee to select a site to build a plant in Canada
for manufacture of wire rods and wire products ASWC Dir.,
,o ^ .. o , Apr. 20, 1903.
(See Canadian Steel and Wire Co.)
(See Canadian Bridge Co. , and American Bridge Co.
of New Jersey.)
UNITED STATES STEEL CORPORATION. 4493
CEMENT—
profit on, reduces cost of pig iron to WSSC, being
made of slag that previously was an expense T. H., vol. 2, 1831,
65 cents cost to produce Portland cement and 50 cents
cost to produce Steel cement
Portland cement never sold for less than $1.30 f. o. b.
Pittsburgh
in hard times, price being $1.15, the profit is 50 cents.
at present there is a profit of $1 a barrel
1350,000 profit on investment of $600,000 shown by
figures Corey stated
$690,000 profit a year estimated on 2,000-barrel plant,
at $1.80 CSCO Dir.,
July 7, 1902.
$600,000 would be cost of plant and $390,000 annual
profits, and average profits $500,000 per annum CSCO Dir.,
Sept. 16, 1902.
plant proposed and profit USSC Ex. Com.,
Nov, 18, 1902.
improvements USSC Ex. Com.,
Mar. 3, 1903.
plants to be installed: $1,400,000 for plant Mo, 4,
Illinois Steel Co
Pittsburgh plant $1,600,000, consolidation into Uni-
versal Portland Cement Co USSC Fin. Com. ,
May 15, 1906.
$3,000,000 expenditure at Buffington plant, capacity
4,000,000 barrels per year USSC Fin. Com,,
Nov. 16, 1909.
GOAL AND COAL LAND—
amount of, and holdings of USSC
360,000 acres in the two Connellsville regions, includ-
ing 250,000 acres to the west and 35,000 acres to the
north. Of this, USSC owns about one-seventh 12 — 790.
3,000 acres a year consumed with increase in con-
sumption at the rate of 10 per cent per year for the
next 20 years would exhaust 172,000 acres It — 791.
35,000 to 40,000 acres (one-half) of old Connellsville
basin unmined 12 — 784.
Greene County comprises 200,000 acres — 150,000
acres coking coal 12 — 784.
lower Connellsville region has 40,000 acres coking
coal 12—7%i.
200,000 to 250,000 acres coking coal held by inde-
Eendents: Lackawanna, Jones & Laughlin; Pitts-
urgh-Buffalo coal, Pittsburgh-Westmoreland coal
and J. V. Thompson, in Greene County and East
Washington County 12— m.
old Connellsville basin coal is softer and better coking. 12 — 784 .
75 per cent of old region held by USSC, through the
FrickCo 12— n^
56,372 acres unmined, owned or controlled by
HCFCOO HCFCCODir,,
Dec. 27, 1905.
38,010 acres unmined Dec, 31, 1900, HCFCCO.
37,124 acres unmined Jan. 1, 1902, HCFCCO HCFCCO Dir.,
Jan. 16, 1902,
825 acres mined 1900, HCFCCO
there'are now 75,000 or 80,000 acres in Connellsville
coal district 4 — 152.
4494 UNITED STATES STEEL COKPOEATION.
COAL AND COAL LAND— Continued.
U8SC had left about 40,000 acres of Connellsville
coal ^—152.
Connellsville coal distinguished from Connellsville
district 4—152.
USSC may have 53,000 acres Connellsville coal 4—152.
USSC haa 40,000 or 50,000 acres Pocahontas 4—153.
USSC has larga body of Illinois coal 4 — 153.
USSG has controlling interest in Hostetter- Connells-
ville Coal Co 4—153 .
H. C. Frick Coke Co. owned one-half Hostetter Co.
before formation of USSC 4—153.
USSC has added to their percentage in Hostetter Co. 4 — 153.
coking coal — the Pittsburgh Coal Co. contract for piu--
chase of coking coal puts Pittsburgh Co out of coking-
eoal business and gives USSC a little over 60 per
cent of the business and leaves a little less than 40
per cent to scattered independents 4 — 160.
hundreds of thousands of acres of coal available for
coking under the new method 4 — 163
on account of the new by-prSttuct method of making
coke, the control of the Connellsville coal does
not now give the exclusive power that it did once,
because a lower grade of coal can now be used for
coking 9 — 539.
TCI Holdings and Southern Conditions —
TCI has 1.623,639,500 tons of coal 75- 973.
TCI has 30,000 acres of first-class steam coal and
second class as a coking coal 15 — 1004.
Birmingham district output annually 16,000,000
tons 15—1017.
6,000,000 or 7,000,000 tons used for merchant ton-
nage in South .?5— 996-997.
independents mined 6,000,000 or 7,000,000 tons
annually in Birmingham district 15 — 1027.
Pratt seam best in South 1 — 18.
Pratt not quite as good as Connellsville 1 — 18.
Pratt wash out sulphur and just as good as Con-
nellsville ; — 18.
Prices and Costs —
10 cents a ton royalty Pocahontas lease USSC. Fin. Com.,
Dec. 7.
increase from $600 an acre to $3,000 per acre
means increased 15 cents a ton; old price
was 15 cents; it is now 30 cents a ton (9,000
tons of coke in an acre of coal) T. H., vol. 2, pp. 1838-
1830.
cost of production in Pocahontas field shown in
report of president USSC August, 1905 USSC Fin
Com.,
Sept. 19, 1905.
Gary says Pocahontas coal isbetter than Connells-
ville 4—183.
has greatly increased in value 6 — 362.
90 cents or $1 a ton in Pittsburgh was cost; $1.40
or $1.50 is now price delivered at Pittsburgh. . i9— 1407-1414.
(Note. — This probably refers to rail coal
and slack coal or steam coal.)
90 cents for thick- vein coal (rail coal)
97 cents for thin- vein coal (rail coal)
42J cents a ton for slack coal delivered in barges
at loading docks
UNITED STATES STEEL COBPOKATION. 4495
COAL AND COAL LAND— Continued.
Fbioes and Costs — Continued.
55 cents a ton for slax3k coal delivered at docks on
Monongahela
65 cents a ton for slack coal delivered at docks on
Allegheny River (prices in Pittsburgh Coal
Co. contract, Apr. 20, 1905) i9— 140.
State University of Alabama to lease 640 acres at
10 or 12 cents a ton i5— 996.
10 cents a ton royalty in Alabama district 15 — 987.
TOI has 96,000,000 tons (2,000 pounds to the ton)
of coal; 6 cents a ton would be a fair royalty
for this, and its value would be something like
$190 to $200 an acre IS— 1004.
royalties in Birmingham district are 7 to 10 cents
a ton for coal; little sells for less than 7 cents
or more than 10 cents 75—1002.
Purchases With Prices Stated —
9,000 tons of coke in 1 acre of coal T. H., vol. 2, pp. 1829-
1830.
620 acres at $850 acre bought of McCIure Coke Co.
byHCFCCO HCFCCO. Dir.,
July 8, 1895.
value of 1,100 acres estimated at $1,000,000 by
Lynch, president HCFCCO HCFCCO. Dir.,
Jan. 28, 1899.
$1,000 recommended to be paid for Ferguson coal
per acre land in part to prevent McClure Coal
Co. from buying HCFCCO. Dir.,
Oct. 24, 1890.
1,200 acres in Sullivan Coimty Ind., bought for
$11,234.19 (about $9.36 an acre) ASWC. Dir.,
Sept. 9, 1902.
800 acres bought from J. V. Thompson, Connells-
ville, for $500,000 cash by HCFCCO USSC. Fin. Com.,
Dec. 13, 1904.
5,500 acres at $110 per acre, 9,800 acres at $175
per acre, proposition to sell by Mr. Hammond . . USSC. Fin. Com.,
May 4, 1909.
3,050 acres at not to exceed $100 per acre USSC. Fin. Com.,
Jan. 5, 1909.
5,000 acres at $50, purchase recommended USSC. Fin. Com.,
Feb. 23, 1909.
421 acres at $55 in Clinton, III USSC. Fin. Com.,
Nov. 16, 1909.
2,644 acres coal and 295 acres surface for
$2,247,496.90, and $36,951.13 from Clairton
Steel Co. to HCFCCO USSC. Fin. Com.,
Jan. 11, 1910.
purchase of 17,000 acres coking coal, Pittsburgh
Coal Co., for $18,000,000 .j— 151.
these 17,000 acres not in Connellaville district .4—153.
the Pratt seam, which will yield about 4,000 to
4,500 tons per acre, at a royalty of 10 cents
would be worth $450 an acre ./5— 987-988.
many purchases are recorded in minutes of
HCFCCO
Purchases- Prices Not Stated —
9,000 tons of coke in 1 acre of coal T. H., vol. 2, pp. 182*-
1830.
Pocahontas field properties, acquisition referred
to special committee, Schwab, Widener, and
Steele, with full power USSC. Dir.,
Dec. 3, 1901.
report of special committee confirmed Jan . 7 , 1902 .
4496 UNITED STATES STEEL CORPOEATION.
COAL AND COAL LAND— Continued.
Purchases — Prices Not Stated — Continued.
16,076 acres, purchase recommended (referred to
chairman) USSC. Fin. Com.,
Aug. 24, 1909.
land in Brook County purchased USSC. Fin. Com.,
Apr. 11, 1911.
Pocahontas Coal Co., lease of 50,000 acres of land of USSC. Fin. Com.,
Dec. 7, 1901.
Pittsburgh Coal Co., contract with subcompanies. USSC. Fin. Com.,
Apr. 5, 1905.
Coke lands — American Coke Co. bought 330 acres
adjoining 2,000 acres already held ASWCO. Min. Ex. Com.,
T,, Dec. 28, 1899.
Miscellaneous — '
Coring Coal Co. contract with ASWC, Ills. S. Co.,
A. Bridge Co., Am. Sht. & Tp. Co ASWC. Dir.,
Mar. 21, 1905.
Doriag Coal Co. would not continue to deliver
coal under existing contract after Feb. 5, 1909,
letter USSC. Fin. Com.,
, ^ , . Feb. 2, 1909.
COKE. (General, see also Coal.) —
9,000 tons of coke in an acre T. H., vol. 2, p. 1829.
to make a ton of coke requires considerably more than
a ton of coal ^5—846.
Coke made of Connellsville and Illinois coal 4 — 153.
various grades of coal can now be made into coke by
new method, that were not cokable 4 — 163-164.
the character of coal that can be used in the coke oven
has been eo widened that to-day there is not the
great distinction there was between coking coal
and noncoking coal 15 — 007.
coking coal lands of subcompanies were turned over
to Frick Co 2—66.
values of coke and coal properties placed too large a
burden, and Lvnch thought he could not make
showing ". USSC. Ex. Com.,
July 3, 1901.
I an not be handled by boat to Pittsburgh 19 — 1410.
was shipped 200 miles to Pittsburgh 19 — 1407.
more expensive to handle and carry than ore 1 — 23.
rate on coke from Pittsburgh to Lake Superior region
less than ore from 15 to 40 per cent 1 — 23.
3 miles per ton-mile rate or less 1 — 23.
Prices and Cost to USS Corporation —
$1.75 was price at Pittsburgh at times 19 — 1408.
cost $1.75 at oven 1910 T. H., vol. 2, (g)p. 1685.
increased 46 cents per ton of iron since 1906 T. H., vol. 2,(8) p.il685.
$1.85 for 25,000 tons purchased at ovens USSC. Fin. Com.,
Dec. 13, 1904.
$3 a ton price on cars; USSC has been selling at
12.20 USSC Ex. Com.,
Oct. 14, 1903.
policy of USSC as to selling
35 cents a ton royalty in Pocahontas lease USSC. Fin. Com.,
Dec. 7, 1901.
$1.60 per net ton to be paid coke company and
coke company to pay 5 per cent "on the total
amount received from the coke; this interest
to be semiannually. This is virtually the coke
company carrying the investment while the
steel company owns the coke, and it is a more
favorable arrangement than that recommended
by the board " ( :SCO. Dir.,
June 11, 1901.
UNITED STATES STEEL, COBPOBATION. 4497
COKE — Continued .
Prices and Cost to USS Coepohation— Continued.
$3.93 estimate is average of cost of all coke at all
furnaces T. H., vol. 2, p. 1691.
54 cents profit of mining company per gross ton,
cost would be $3.55 to $3.60 T. H., vol. 2, p. 1692.
"Therefore the cost of coke in the iron would be
the same to our competitors that it would be to
ourselves, except the difference in the cost of
coke to us who produce it and to our competi-
tors who have to buy it" (Gary) T. H., vol. 2, p. 1689.
Prices to Others Than USS Corporation —
$1.15 per ton and $1.35 per ton sold under con-
tract with Mahoning Valley Iron Co HCPCCO. Dir.
May 9, 1895.
$1.16 a ton for 35,000 or 50,000 tons a month to
Illinois Steel Co.; sold by Pocahontas Co. dur-
ing 1898 Ills. St. Co. Dir.
Dec. 19, 1897.
15,000 tons at $2.50 at ovens to Am. Steel Hoop
Co HCFCCO. Dir.
Sept. 27, 1899.
$7 a ton (netting $3.25 at oven) sold to Duluth
Furnace Co.; sold by HCFCCO HCFCC. Dir.
Sept. 27, 1899.
$3 ton and $2.25 at ovens for full requirements of
Corrigan, McKinney & Co. ; sold by HCFCCO. HCFCCO. Dir.
Sept. 27, 1899.
$2.60 at ovens for 35,000 tons a month sold to Fed-
eral Steel Co. by HCFCCO HCFCCO. Dir.
Sept. 27, 1899.
$3 at ovens for full requirements of Home Valley
Iron Co. for full requirements sold by HCFCCO. HCPCCO. Dir.
Sept. 27, 1899.
$2.50 at ovens; sold to Andrews and Hitchcock's
by HCFCCO HCFCCO. Dir.
Sept. 27, 1899.
$4.60 ton delivered to Reading Iron Co., or $2:75
at ovens; sold by HCFCCO HCFCCO. Dir.
Sept. 27, 1899.
Prices fixed by HCFCCO in various contracts
from $2.60 to $3 a ton at ovens HCFCCO. Dir.
Nov. 22, 1899.
$3.50 per ton at ovens, market price on Jan. 24,
1900 HCFCC. Dir.
Jan. 24, 1900.
$3.50perton,30,000tonaatoven;soldbyHCFCCO. HCPCCO. Dir.
Mar. 28, 1900.
COLLIER'S WEEKLY—
May 27, 1911, statement that upon receipt of cable-
gram from J. P. Morgan, by one of his associates,
orders for railroad equipment, etc., increased 1 — 49.
May 27, 1911, statement that J. P. Morgan, as rail-
road owner, buys and as steel company owner sells,
and in fixing price asking whether he makes it high
or low 1 — 49.
Mar. 27, 1911, states that TJSSC sold more export rails
than domestic in March. Gary admits it may be
true, and promises to furnish table S — 100.
Mar. 27, 1911, article, Gary does not admit that Aus-
trians and Mexicans paid $4 lees than $28, domes-
tic price S— 100.
4498 united states steel cokpokation.
combination-
General. (Including general principles and spe-
cific cases.) —
Schwab's speech before Bankers' Club, Chicago. . 18 — 180.
object is to reduce cost, and not to throttle com-
petition 18 — 1281.
formerly designed to control all output, but
Schwab's plan was to greatly reduce cost by
combination 18 — 1284.
trust defined by Schwab, is combination of, say,
95 per cent of firms in certain line which con-
troUed prices, etc 18 — 1285.
if USSC. included all producers it would have
lower costs of production 24 — 1744.
policy was not to restrict any of combined plants
but to confine each plant to certain lines IS — 1299.
advantages were not to be gained by maintaining
prices or restricting output, but merely from
economies of combination 18 — 1299.
of USSC. reduced cost of manufacturing, but
there was a considerable increase in price of
rails between 1899 and 1900, about the time of
the formation of the Federal Steel Co 18 — 1318.
USSC. has maintained prices regardless of the
cost of production (Schwab)
do not change prices, which is not good for the
country. Camegi3's practice and experience
would have led to reducing prices in the panic
and business would have been started which
would have benefited labor T. H., vol. 2, pp. 802-808.
effect of tariff is to render easier combinations
raising their prices to an excessiive degree. ... T. H., vol. 2, p. 1807.
of which Gary is head, raise prices so foreigner
can not enter, which taking off tariff would
prevent T. H, vol. 2, pp. 1841-
1842.
would control price regardless of tariff T. H., vol. 2, pp. 181S-
1814.
tariff reduction would take from the combination
the power of raising prices of rails so foreigner
could not enter T. H., vol. 2, p. 1841.
will get more profit than when there is healthy
competition (Carnegie) T. H., vol. 2, p. 1819.
high profits will be got when any branch of manu-
facture is in hands of a monopoly than when
there ia healthy competition, says Carnegie.
Very high profits indicate monopoly, in other
words T. H., vol, 2, p. 1819.
are conservative and are not progressive, and tend
to rely upon their establishment and upon the
tariff T. H.. vol. 2, pp. 1780-
1802.
would save freight in shipping from home to com-
petitor's territory, and vice versa, by giving
each plant its own territory is — 1293.
as one of the advantages of combination enumer-
ated by Perkins in his address in Houghton,
Mich,, Aug. 7, 1911, is that there "have been
fewer failures in the lines of biiainesa involved " 2f — 1571.
(Note. — TCI. did not fail but was not re-
garded as so valuable a foundation for its securi-
ties as USSC),
foreign trade has been increased by combina-
tions, as shown by the export trade figures of
the USSC 22—1571.
UNITED STATES STEEL CORPORATION. 4499
COMBINATION— Continued.
General — Continued.
Perkins, in answer to the query proposed by him
in his Houghton address (when asked by Mr.
Young what he can say), to wit: "Is the tend-
ency to have the ownership of these large com-
Eanies and the profits mad3 by them enjoyed
y a few men or by many men? " answered as
follows: "My belief is, and my experience
shows, that the tendency to have these corpora-
tions owned by a great many people in place
of the same corresponding businesses being
owned by a few people in a partnership. I
think that is one of the most interesting devel-
opments of modem business of a large scale —
that the public have become more and more
o^vners of the business" 22 — 157,S.
average holdings in large concerns has decreased
in amount in each holding, thus showing a
greater number of separate holders 22 — 1573.
Standard Oil decision is a menace to other con-
cerns because it decides that business must be
carried on in the light of reason 2S — 1607.
breaking up of Standard Oil is warning to other
corporations, says Perkins 22 — 1527.
one of the advantages was that of mutual protec-
tion and mutual defense (Perkins) 22 — 1527 .
danger of combinations stated by Mr. Young 24 — 1745.
eminence in steel trade would give power to
USSC. to compel others to reduce price of rails
to $22 if they decided to reduce the price i«— 1296 .
partnership interest held by each laborer would
be desirable condition 22 — 1574.
large a^ggregations are necessary, according to
Perkins, in the steel business 22 — 1551.
"abuses which some of them have undoubtedly
been guilty of" will cause some kind of con-
trol or regulation CSCO. Dir.,
June 11, 1906.
legislation to control combinations would have a
worse effect if enacted by Democratic than by
Republican Congress CSCO. Dir.,
June 11, 1906.
combination benefits are stated by Gary as fol-
lows: "I think we have some advantage by
reason of the aggregation of capital and by rea-
son of our great talent and our organization
and, among other things, because we have a
large sum of money which we keep at a central
bank, as you would call it in politics down
here, and our subsidiary companies do not re-
quire more than half so much money, probably,
as they would require if they were acting sepa-
rately and independently of one another; and
I believe these local companies could not do
one-half or one-fourth of the export business
which we do, if they were segregated or divid-
ed— and that question of exports, as I said be-
fore, was the dominating factor, in my opinion,
at the time — in my action at the time, of the
organization of the United States Steel Cor-
poration. It is very important to consider
that." 5—104.
31572— No. 53, pt 4—12 2
4500 UNITED STATES STEEL COEPOBATION.
COMSmATION— Continued.
Specific Cases — ■
American Steel & Wire Co. to take all Illinois
Steel Oo.'s product or control it, plan formu-
lated Ills. St. Co. Dir,,
Apr. 27, 1898.
"an association had been formed which would
probably control the entire production of rods
and wire in the United States, except that of
Illinois Steel Co. " reported by J. W. Gates,
chairman Ex. Com. Ills. Steel Co. and request
for appointment of committee to confer with
committee of association to arrange sale of rods
and billets at equitable price above i)rice of
pig iron for 5 or 10 years to said association Ills. St. Co. Dir.,
Dec. 17, 1897.
wire plants of United States to be combined and
Ulmois Steel Co. to be asked to sell its rods at
a certain agreed price or to sell its Joliet plant.
This was referred to Ex. Com. Ills. St. Co Ills. St. Co. Dir.,
Oct. 19, 1897.
Carnegie Steel Co. purchased joiutly with Beth-
lehem Steel Co. a half interest each for $35,000
iu patent of Cleland Davis USSC. Fin. Com. Sup.
Ext.; Dec. 15, 1908.
half-interest with Bethlehem Co. iu Cleland
Davis patents, covering method of decapping
projectiles ia armor, &c., taken by Carnegie
Steel Co USSC. Fin. Com.,
Dec. 15, 1903.
United States consul in Great Britain says three
strongest combinations in the iron trade are
USSC. German Steel Syndicate, and the In-
ternational Kail SjTidicate T. H., vol. 2, p. 1818.
Carnegie believes there is a combination fixing
price in United States, Germany and Great
Britain T. H., vol. 2, p. 1818.
trade alliances not recommended with people
not thoroughly established. Sharon Steel Co.
proposition looking toward making some work-
mg arrangements with reference to wire busi-
ness USSC. Ex. Com.,
May 28, 1901.
Frick objected to prostitution of Coke Co.'s
interests to that steel interests HCFCCO. Dir. ,
June 7, 1887.
indirect control of, or interest in other company,
i. e., Cambria Steamship Co., through being
stockholder in Mahoning Ore & Steel Co., sub-
scribed for 900 shares of Cambria Steamship Co.
(how much is capitalization of this company?) CSCO. Dir.,
Jan. 22, 1906.
Bellaire Steel Co. bonds to be bought by USSC
at par or better to amount $150,000 USSC. Fin. Com .,
May 13, 1902.
Michigan Central R. R. bonds $5,000,000, to be
bought by USSC USSC. Fin. Com.,
May 13, 1902.
trade agreements were violated and Temple
would compel acknowledgment of violations.. 2-^VllQ.
Temple could investigate accounts, account sales,
and shipments .' . 24 — 1716.
Temple's views on trusts stated 24 — 1739-1743.
UNITED STATES STEEL COEPOEATION. 4501
COMMISSIONEB OF CORPOBATIONS—
bureau -was established'Feb. 14, 1903, and started busi-
ness July 1, 1903. iFirat commissioner was James
E,. Garfield; succeeded by Herbert Knox Smith.
Secretaries of Commerce and Labor in order of ap-
pointment were: George Cortelyou, Victor Metcalf,
Oscar Straus, Charles Nagel. Appropriation is di-
vided into two parts: (1) The statutory roll $79,000,
and (2) the special agents' roll $175,000; and the
-total is now a little over $260,000 9 — 456.
Attorney General advised that commissioner had no
authority to give out any information without the
consent of the President 9 — 470.
Attorney General advised that under sec. 6 of the act
to create the Department of Commerce and Labor
it is nor permissible for him to disclose the informa-
tion or data collected unless by special direction of
the President 9 — 483.
opinion of Attomey]General as to powers of 76—1159-1162.
received confidential information under pledge 76—1152.
declined to give information to Senate Judiciary Com-
mittee 76—1154 .
issued no subpcenas in order to grant no immunity. . . 9 — 473.
did not subpoena books or papess, etc.^ in order not
to give immunity from prosecution 9 — 491 .
did not subpcena data because he did not want to risk
the destruction of papers by the corporation in
order to avoid their production 9 — 492-3.
no prosecutions were pending against the USSC 9 — 491.
examined nobody under oath 9 — 473.
matter furnished by USSC was not sworn to, but was
almost wholly copies of books, transcripts from
books, accounts, and records and minutes, etc 9 — 492.
checked information furnished by USSC by compar-
ing-a few selected items 9 — 521 .
other steel concerns secured the same promise as to
secrecy and returning of originals and destruction
of transcripts 9 — 193.
refused to make a flat statement that nothing was
refused by the USSC. or any of the subsidiary com-
panies S — 172.
said he would not dare give any cost figures 9 — 545.
agreed not to make copies of cost sheets and to_ return
original sheets, and to use the same to combine the
cost of the various companies into the average cost
which would not display individual cost, and agreed
to, and did destroy the work sheets and transcripts
on Nov. 1, 1910 9—473-4.
does not recollect any understanding in regard to any
class of information submitted other than the cost. . 9 — 474.
went to USSC. office to Gary to get permission to keep
his transcripts of the cost sheets until Nov. 1 9 — 490.
went to USSC. office to complete his information by
an interview with Gary, Filbert, and Trimble 9—482-490-9.
report states that USSC. is the dominant concern in
the steel industry; and Smith, when asked to define
the statement that it dominates, said that there is
no limitation upon it 9 — 193.
stated in r.a.o-e 9 of Letter nf ^gjnbmittal that USSC.
on which
9—547.
4502 UNITED STATES STEEL COBPOKATIOX.
COMMISSIONEE OF COEPOEATIOKS— Continued.
report stated that before 1898 there was sharp com-
petition, modified by frequent pools and price agree-
ments, and in examination of Smith he stated that
there was no question about the e^ddence of fre-
quent pools and price agreements prior to 1898 9 — 493.
export sales investigated, but not published 9 — 498-9.
requested to furnish evidence held by his department
as to relations between International Harvester Co.
and USSC. and railroad companies, in which E. H.
Gary or Geo. F. Baker or G. W. Perkins is director. . 72— 903-5.
minutes of directors referred to investigation by Com-
missioner of Corporations and state that the finance
committee have been in close touch with this matter
and have been in frequent and almost constant com-
munication with Commisioner Garfield and more
or less with the President himself concerning these
matters 9—496-497.
George W. Perkins was at Smith's office several times
in regard to the National Harvester Co 9 — 49.5.
(Smith) can not state whether George \\'. Perkins was
the person who was in frequent and almost constant
communication with Commissioner Garfield and
more or less with the President himself 9 — 497.
Gary ga,ve permission to Ways and Means Committee
at tariff hearings for Commissioner of Corporations to
give them what was given to commissioner confiden-
tiaUy T. H., vol. 2, p. 1724.
gave statement to Ways and Means Committee on
tariff, showing production of standard rails
14,020,503 tons, 1902 to 1906, inclusive, average
cost $22.39, average price $27.36, and average profit
$4.97; details of cost; highest and next highest cost,
lowest cost; highest and lowest profit; and pig iron
average cost $14.01, 1902-1906, on 51,602,699 tons
produced T. H., vol. 2, pp. 1763-
1766.
Roberts and Boiling say that Gary will give the com-
mittee the same data that was given to the Bureau
of Corporations 6 — 357.
COMPETITION. (Includes interfering with competi-
tion before organization of USSC.) —
although there was competition between Carnegie Co.
and Illinois Co. (5-220) still in 1895, 1896, and 1897
the price of rails was high, although labor and ore
was very low 5 — 221 .
Illinois Steel Co. bought coke from Pocahontas Co. in
1898 and had cheaper transportation for Connells-
villecoal Ills. S. Co. Dir.,
Dec. 17, 1897.
ASWCO. purchased billets from Ohio Steel Co. and
Lackawanna I. & S. Co. before organization of
USSC ASWCO. Min, Ex. Com.,
Feb. 21, 1899.
ASWCO. purchased rods from Illinois Steel Co. before
organization of USSC AWSCO. Min. Ex. Com.
Mar.21-22, 1899.
Coke sold by HCFCCO. to Lackawanna Iron & Steel
Co. before organization of USSC. for all require-
ments HCFCCO. Dir.,
Sept. 27, 1899.
coke sold to Federal Steel Co. ^^/^
fore organization of USSC
UNITKI) STATUS STKICN COIU'OUATION. 4508
OOMPKTITION Ooiiliiuiml.
/VHW(!(). |iiir-cliaH(iil Hids I'niiii I'Vulonil SLoul (-!o. |](i-
fdiii cirvviniziil,!.)!! (if IISSC AHWlH). Min. lOx. (Join,,
Oct,. 31, IK!)!).
ASW(H). imrcliaHnd |ii|^' Iroii lu'l'iiro or^'aiii/.aliuii (if
USSCl. IVciin h\«l(iriU Sl*i<0 Oo ASWOO. Mill. \<)x. Com..
Oc-L. 31, IH!)!).
coiilnu'l, lidl.vvdiiiv ASW'lH), ami l.iiko S\l|Mii'iiir cuii-
Bolidalod iiiiiiiw lidforo or(^;niiza,l.i(iii IISSO ASWCO. Dir.,
Nov. !), I Hi)!).
cdUii Bold liy 1I(!I''(HH). Id Nalriunal Sl.(«il do, lidluni
iiiWiiiizal.idii d( USS( ; 1 10h\;CC). Dir.,
OdkdSdId 111 ItoUddlmiii, .ImidSit l4Hip;lilin, lld(iulilic, Nov. 22, 1890.
and cilliiM' iHd(>|iiMid('nls licfui'd orpini/.alidii of
IISS(). l.v lUUi'Cd IIOI'XKX). Dir,,
Nov. '2'2, IK!)!).
ASWd liiid Nlidiiii^'-.Hi'idd c'diilracl, willi dariuitjio
("d. fur liilldlH luifdro drKMni/.al.idU df llSSd ASW('0. Min, lOt, Cdin.,
Ddd. 21), IH!)i).
jiriiu'ipal cdiiipul il.idii had liddii bdl,W('dii I Hindis ,Sl,ddl
('d. and (iarno^'id do 5 220.
Illinois Co. Hold j^'di Kindly iii Wcvsl, S- 221),
CarndKid ('o. Hold railM in WchI, JIO a Uin aiul UliMoiH
(Id. iidarlv wdul, inid liaiuls of roci'ivor.H and did nol,
pay divicldiid.i up lo 18!)!) J- 220.
linri'liaHdM from lllinni.s Slocl Co. and h'oddrMl Stool
Cd. bdl'dro orj^ani/.alion of USSd A\VS("(). Dir,,
\<\<U. 20, 1!)00.
pnrcliiiHdH of pli; iron from Wlioniiiif^o I'^irnaoo Oo.
and lirior llill Iron & t'oal Vo. liiifuro dri,'ani/.!i-
l,idii df USSC! \S\\'('()., Min. lOx. (din.,
May ;., 1(J00.
wdo df piij; inin (,d ('nrnof^'io Cd. pnipo.siid hol'ord or-
u;aiuzalion IISS(' AWSCO., Min. Rx. Com,,
May l(i, 1!)()0.
pMrohaHo from ('arnd;;id Cd. of rod lulldl.s hoforc
diWnii/.atidn USSC AW'Sl'O., Min. Hx. Com.,
May 21, 1!)()0.
Halo of pix irdu lo Caruotjio Co. lioforo or«;ani/.alion
(I.SSC '. ,'\\\'SCO., Min. I'lx. Com.,
May 21, l!)00.
caMooUalion oliai>>:o lo l)o iiiiid ('arnoi^io ('o. on biUols
boforo oripmi^'idion llSiS('
National Slool ('o. lo bo paid oanoollalion charifd on
Hlool bofdro dri^ani/.alidn of USSl'
bdiij^dil, tnini I, drain Slool Cd, biilol.s bofdro drti;ani/,a-
l,ion of llSScI
bouKld, fiMiii Amorioan Slool lloo|) Co, l.2;U Idn.i iron,
bofdro 01^:111 i/,iil ion of USSl)
bonslil, fiMni UliiidiH Stool Co. rods f>00 Ions por day
bol'oro oiXiHiizalion IISS(1
bouK'it billol.H fiMin l'ariu';.;io Co. boforo orifani/.a-
lion IISS(' AW SCO , Min. K\. Com.,
Sopt. 13, 1!)00.
Sopt. I!), 1!)00.
billota to A\\S('(>. boforo or^imi/ation AWSlX)., Min. Ex, Com.,
Got. 23, lilOO.
galea by ASWCl). (d National Tnbo Co. of akolp and
ftlso "of tinplato to Mitoholl (,of ooinpany') boforo
orLiinination IISS(, AWSCt)., Min, ICx. I'om.,
D(v. 20, lOtK).
4504 UNITED STATES STEEL, COEPORATION.
GOMPETITION— Continued.
75,000 tons Sparta ore bought before organization
of USSC AWSCO.,Min. Ex. Com.,
Feb. 6, 1901.
20,000 tons steel bought from Maryland before or-
ganization of USSC AWSCO., Min. Ex. Com.,
Feb. 19, 1901.
purchase 5,000 tons steel from Lorain Steel Co. before
organization USSC AWSCO., Min. Ex. Com.,
Feb. 19, 1901.
purchase 6,000 tons pig iron from Lorain Steel Co.,
by AWSCO before organization USSC AWSCO., Min. Ex. Com.,
Feb. 19, 1901.
Restraint of —
CSCO. can sell steel car combination, 1,000 tons
of steel a day, if they (the CSCO.) stay out of
car business. (Min. Bd. of Managers, CSCO.
(LtdA Jan. 16, 1899. Copied in Bridge's In-
side History of CSCO., p. 283.)
Pressed Steel Car Co. "pays $100,000 a year to
the Carnegie Co. to keep out cf the car busi-
ness" USSC. Ex. Com.,
Apr. 23, 1901.
Pressed Steel Car Co. and George A. Fuller Co.
plan to control these concerns by outside plate
makers would be unfortunate for USSC.^ but
plan for USSC. to obtain control was left in
abeyance USSC. Ex. Com.,
Apr. 17, 1902.
"Alliances with large concerns such as the
Bridge Co., Standard Oil Co., and the two car
companies," on the "principal causes" far
CSCO. "getting more business than our com-
petitors" CSCO. Dir.,
Feb. 8, 1909.
American Steel Hoop Co. had an agreement with
the Illinois Steel Co. to pay them $150,000 per
year to stay out of the cotton-tie business CSCO. Dir.,
July 30, 1901.
Carnegie Steel Co. agrees to keep out of bridge
busmess unless AMBCONJ. fails to make two-
thirds of all bridge work in United States MBCONJ. Dir.,
May 10, 1900.
contract for 10 years Carnegie Co. Dir.,
Apr, 23, 1900.
contract CS(^0. with American Tinplate Co.
"for period of five years from July 1, 1899, and
thereafter until one year's written notice,
which may be given by either party, on or after
July 1, 1903," for 125,000 G. T. tin and block
plates, providing that "buyers may not resell
without first putting material through a proc-
ess of manufacture." Sellers agree, so long as
the buyers perform their part of this contract,
"they will not sell to any competitive person
or company in the United States, tin or block
plate bars of the character covered by this
contract;" and sellers agree "not to enter into
competition with the Carnegie Steel Co. (Ltd.),
manufacturers, during the life of this con-
tract." Buyers also agree, if their capacity be
increased, sellers shall have the privilege of
selling the same proportion of the new require-
ments. (Carnegie Steel Co. (Ltd.), Min. of
Bd. of Managers, Jan. 16, 1°"" "-- ^--J— '-
Inside History of the Came
277, 285, 286.
UNITED STATES STEEL CORPORATION. 4505
COMPETITION— Continued .
Rbsthaint of — Continued.
Union Steel Co. is the only company which gets
unfinished steel from CSOO. which competes
with constituent companies CSCO . Dir. ,
July 1, 1902.
Wnion Steel Co. is to be pushed as CSCO. can and
$28 for billets is high enough for this CSCO. Db.,
Nov. 4, 1902.
"the benefit to be derived from the absorption
(of the Union-Sharon interests) would be very
great. The chairman stated it would give
them considerable assistance in securing busi-
ness which could not be handled, owing to the
shortage of open-hearth steel. He cited, as an
example, the business of the American Car &
Foundry Co., which could be obtained at all
times on an equal basis" Gen. Man. Sal. Min.,
Dec. 17, 1902.
Union Steel Co. producing products similar to
ASWCONJ acquired by USSC i— 28.
All capital stock of Union Steel Co. purchased
and $45,000,000 of bonds guaranteed USSC. Dir.,
Jan. 6, 1903.
Clairton Steel Co. bought USSCO. Fin. Com.,
Mar., 1903, and Apr. 29,
1904.
CSCO. could build at Clairton for $300,000 in 60
days which would pay for itself in 2 months
(Bope) CSCO. Dir.,
July 24, 1905.
Dinkey says the mill at Clairton appears to be
what they expected — a decided success CSCO. Dir.,
Aug. 7, 1905.
Shelby Tube Co. is the only real live competitor
of the National Tube Co USSC. Ex. Com.,
Apr. 30, 1901.
Shelby Tube Co. is only maker of seamless tub-
ing. Advantage of understanding with
Shelby Co USSC. Ex. Com.,
Apr. 10, 1901.
Shelby Tube Co. "besides protecting the Na-
tional Tube " should run over 100,000 a month. USSC. Ex. Com.,
May 20, 1902.
"suggested that some arrangement could be
made with Miller with a view of maintaining
prices, and that some prices now could be
advanced by both companies" (Shelby Tube
Co. and USSC.) USSC. Ex. Com.,
Apr. 24, 1901.
6SC0. has contract with Shelby Co. which "was
very favorable to the Carnegie Co., inasmuch
as the latter could not arrange the price of steel
that it would be rather difficult for the Shelby
Co. to continue in business USSC. Ex. Com.,
Apr. 20, 1911.
USSC. refusal to sell billeta in 1901-2 Lutz's letter, USSC. Fin.
Com.,
June 15, 1903.
Could not buy semifinished goods from USSC.
and then was purchased by USSC. (Aug. 8,
1901, USSC. Ex. Com.) 25—1635.
$25,000 paid to Wyman & Gordon to keep out of
patents, etc.,
ASWC. Dir.,
Sept. 9, 1902.
4506
UNITED STATES STEEL COEPOEATION.
COMPETITION— Continued.
Restraint of — Continued.
exchange of billets for coke of Oliver Co. recom-
mended because "it would remove Oliver as a
competitor of ours in the selling of coke and we
could furnish him with billets in exchange;
that some sliding scale could be arranged, and
that a long term contract should be made."
President authorized to take up this matter. . .
jobbers contract provides that the jobbers will
carry no stock ' ' but that manufactured by the
corporation in its particular lines," and will
give up direct shipments. {See last page.). . .
Griswold Wire Co. "are only ones making ties in
opposition to our company," and purchase
voted for 175,000 or better. {See Ginning
companies)
William Wharton Steel Co. could be procured,
and subject referred to Gary, Frick, Corey,
and Widener
USSC. Ex. Com.,
May 2, 1901.
Gen. Man. Sal. Min.,
July 17, 1909.
USSC. Ex. Com.,
June 3, 1902.
"there is also a certain amount of business com-
ing to us on account of reciprocal relations "...
all big shipbuilding companies will do business
with CSCO. "on anything like an even basis."
{See "Cramp Ship & Engine Building Co.")..
Standard Oil Co. threatened to build its own
mills, and were given a price 5 per cent below
prevailing prices, or if market should break,
then price to be fixed through the arbitrator . .
Standard Oil Co. protected Carnegie Co. and
Carnegie Co. enjoyed trade in plates with Na-
tional Transit Co. , a department of Standard Oil
Co., to amount of $150,000 tons per annum
Standard Oil Co. "desired to contract with ua
for tubes with the right to buy the steel any-
where they should see fit; the conclusion
reached that any contract with the oil company
should provide for the purchase from us of
plates as well as tubes"
National Transit Co. contract sliding scale for
sheared plates at $10, pig iron gives $1.15
sheared plates and nets $8 a ton profit to CSCO.
J. P. Morgan & Co. financing a proposition for
34^00 tons in Argentine Republic, and "as
J. P. Morgan & Co. are financing the proposition,
this tonnage will undoubtedly come to us"
(CSCO.)
{See "USSC. financial and corporate opera-
tions. ")
USSC. Fin. Com. Supt.
Ext.,
Apr. 27, 1904.
CSCO. Dir.,
Feb. 8, 1909.
CSCO. Dir. ,
Feb. 22, 1909
CSCO. Ex. Com.,
July 15, 1902.
i«— 1313.
USSC. Ex. Com.,
July 13, 1902.
CSCO. (Ltd.). Min.Bd.of
Managers, Jan. 16, 1899.
{See Bridge's Inside His-
tory of Carnegie Steel
Co., pp. 286 (277-292.)
CSCO. Dir.,
Mar. 22, 1909.
UNITED STATES STEEL COEPOBATION. 4507
COMPETITION— Continued .
Restraint of — Continued.
division of tonnage with export wire nail makers. ASWCO.IDir.,
May 9, 1900.
agreement made by the United States Steel Co.
with the tinplate manufacturers of Wales that
the exports of manufactured tinplate from the
United States should not exceed a certain quan-
tity, based on a counteragreement on their part
that they should not take a certain amount of
block plates from the United States (referred
to in testimony of Carnegie) T. H,, vol. 2, p. 1839.
an agreement was reached in December last year
among the tube makers of the United States,
Germany, Great Britain, and other countries,
for a working arrangement, the purpose of
which was to put an end to the serious losses
resulting from international competition.
(New York Tribune, in July, 1908) T. H., vol. 2, p. 1839.
agreement between CSCO. and Republic to be
put in definite shape, so there will be no mis-
understanding in future CSCO. Dir.,
Nov. 21, 1901.
Republic can not afford to be antagonistic to
CSCO. Corey states (president) CSCO. Dir,,
Nov. 12, 1901.
CSCO. bought stocks in gianing companies that
used their cotton ties exclusively, and in 1909
shipments of cotton ties amounted to about
2,500,000 bundles. The CSCO then decided
to sell these stocks, "as the purpose for which
they were taken has now been accomplished,
as evidenced by the fact that the shipments of
cotton ties this year amounts to about 2,500,000
bundles" CSCO. Dir.,
June 3, 1909;
June 15, 1909.
(See "USSC. financial and corporate opera-
tions. ")
contract between American Sheet and Tiaplate
Co. and American Can Co. recommended.
(Moore and Reid directors in both companies.). USSC. Fin. Com.,
Apr. 11, 1905.
special prices might have to be voted to Ameri-
can Can Co. if the American Can Co. could not
succeed USSC. Ex. Com.,
May, 8, 1901.
letter in reference to recent price reduction on
finished products of American Sheet Steel Co.,
American Tinplate Co., and National Tube
Go : USSC.E.Com.,
Nov. 11, 1902.
$3.75 per box contract American Tinplate Co.
with American Can Co USSC. Fin. Com.,
Jan. 12, 1904.
USSC. contract with Crucible Co. prevented
leading interests from engaging in competitive
business ;?5— 1627.
(Note. — This means both concerns recip-
rocally.)
crucible steel contract to contain provision that
"leading interests are not to engage in com-
petitive business " USSC. Fin. Com.,
Mar. 19, 1903.
4508 UNITED STATES STEEL COKPOEATIOK.
COMPETITION— Continued .
Eestkaint of — Continued.
Lindabury claims that the agreement whether
in the contract or not was legal, whereby
the leading interests in the contract between
the Crucible Go. and the USSC for the Clairton
property were not to be engage in competitive
busmess 25—1632.
between 11 companies producing in some instance
the same thing, without trade arrangements
and with price cutting would be a destructive
competition I«-^1293^.
there is always limitation of output 18 — 1294-5.
it is better — Schwab says — that instead of 11 con-
cerns operating independently that they should
be cornbined and competition to that extent re-
duced 75—1299.
Mr. Sterling points out that if two concerns made
two products before consolidation and after
consolidation one plant made one of the prod-
ucts and the other made the other product
solely, the competition between them as to both
would be eliminated. In reply to Mr. Linda-
bury's suggestion that both being controlled by
one concern, there would be no competition,
Mr. Sterling pointed out that the competition
was between the condition of independent
ownership before and combined ownership
after the consolidation
it does not follow that competition is restricted to
develop or extend trade, but Schwab thinks it
is the best thing to do 75—1299.
tariff is not important, if there is competition, but
if combination is permitted that is most serious
(Carnegie) T. H., vol. 2, p. 1818.
USSC. was planned to obviate competition be-
tween ■ 1 — 32.
Morgan's Kailroad and National Tube Co. and
Carnegie carriers were competing concerns be-
fore formation of USSC; no competition be-
tween Carnegie and National Tube after Steel
Corporation organized 1 — 34.
the control of the market necessitated getting a
majority of the producers 1 — 39.
after the formation of the ASW. prices were very
good. Prior prices were low 1 — 39.
Tube Co. had control of its market i— 40.
Tube Co. had control of 85 to 90 per cent of total
tube tonnage 1 — 41.
threat of Carnegie to build tube works and rail-
road was trouble at time of formation of USSC. . 1 — 40.
Federal Co. was in competition with Carnegie. . . 1—41.
Gates preferred open competition and run full
than to have a fictitious market and run 40, 50,
60 per cent and not be hampered by competi-
tors saying you are selling too low 1 — 43.
Carnegie Co. about to install a tube works of
about 280,000 tons per annum Nat. Tube Co. Min.,
Jan. 25, 1901.
UNITED STATES STEEL COBPOKATION. 4509
COMPETITION— Continued.
Restraint op — Continued.
Carnegie planned to build a tube works on Lake
Erie, and to build a railroad from Lake Erie
points. Mr. Mo^an had expressed to Mr. Hill
tbe fear that if Carnegie went into the build-
ing of railroads he would demoralize the entire
railroad situation as he had demoralized the
steel situation, and that if he built a tube
work8_ at Ashtabula it would result in a de-
moralization of the prices of tubes. Mr. Mor-
gan had just put the National Tube Co. to-
f ether. After considerable talk between Mr.
lill and Mr. Morgan, Mr. Hill suggested to Mr.
Morgan that he (Morgan) asked me how I would
suggest we could stop Carnegie from building
his railroad and building this tube works; and
I told him in my opinion thefe was only one
man to talk to that had any influence with Mr.
Carnegie, and that was Charley Schwab. He
wanted me to call in Frick. I said, "If you
do, you will never make a trade with Mr. Car-
negie." Well, he said, "Will you get Schwab
on for a conference? " Schwab and Gates drew
up a plan at Morgan's house for the United
States Steel Corporation. "And it was to ob-
viate this anticipated competition that this
tentative plan was drawn up that afterwards
became the United States Steel Corporation"
(Gates) Z— 31-32,
organizers of USSC. knew that they had to get in
Carnegie plants, because they could not com-
pete with him f.4— 1726.
Carnegie Co. would have driven every other
steel company out of business if USSC. had
not been organized 5 — 220.
Carnegie Co., with Frick, Schwab, Peacock, and
organization, could have injured monopoly of
National Tube and 9 other companies 24 — 1726.
competitors were afraid of Carnegie and there-
fore entered into agreements 24 — 1715.
consumers were in favor of agreements like struc-
tural because otherwise they could not buy
ahead with certainty that prices would be held . 24 — 1715.
Smith's report states that competition of inde-
pendents has been modified by the policy of
"cooperation " 9 — i75.
Smith states "that the ruling motive was the re-
moval of competition," in the great consolida-
tions; and this era of great consolidations
reached the climax in 1901, when the USSC.
was formed 9 — 477.
since 1901 there has been no great consolidation
comparable with the USSC, and no great con-
consolidation in the steel business 9 — 477.
Smith's report (P-4) states that the restriction or
elimination of competition through combina-
tion undoubtedly was the principal cause of
most consolidations in the steel industry, and
he still held that opinion on July 20, 1911 9—478.
4510 UNITED STATES STEEL CORPORATION.
COMPETITION— Continued.
Restraint of — Continued.
small plants can not and do not compete with the
USSC. "Any small concern that makes just
one item of steel, that buys everything and
makes steel * * * he should not be con-
sidered a steel manufacturer at all." Steel
can not be produced on a small scale to-day
(Carnegie) T. H., vol. 2, pp. 1550-
^ ° ' 1551.
competition is easier in other lines than steel,
because about $50,000,000 or $100,000,000 is
needed to go into the business 6 — 339.
no important steel company has been organized
since the absorption of TCI. by USSC i5— 867.
two or three new concerns organized since USSC. ;
Inland Steel Co., Chicago; Youngstown Steel
& Tool Co., Youngstown, Ohio, and a steel
plant in Cleveland, Ohio. That is all of any
importance IS — 867.
no new concerns in steel business likely to be
started, because the possibility of getting a suf-
ficiently large supply of raw material is diffi-
cult, if not impossible 18 — 1291.
large concerns must own large ore reserve to
justify investment of large capital in plant 18 — 1291.
all these steel companies which own all the north-
western ore, by common consent, sell their rails
and structural steel at the same price T. H., vol. 2, pp. 1675-
1677.
Tube Co. did not displace neighbor's products. . 18 — 1313.
but it is not the same as to foreign sales T. H., vol. 2, p. 1677.
the condition that makes these prices could be
in the control of the steel corporation (Schwab) . T. H., vol. 2, p. 1677.
Schwab, in the tariff hearings, testified that all
parties are selling rails (standard) at the same
price. And "if I were to vary that 10 cents a
ton to-day I would precipitate a steel war, to
use such a word or expression, that would
result in running my works without a profit.
Everybody, by tacit and mutual understand-
ing, feel the same thing about that. I would
not vary the price of any rails under any cir-
cumstances, not if I knew it was to get 100,000
tons in orders, for the reason that my competi-
tor next door would put the price down to $1
a ton, or half a dollar a ton even, and we would
be in a position where we would be running
without any profit at all T. H., vol. 2, pp. 1650-
1851.
if tariff were reduced, Gary says "most of our
competitors would soon be out of business, and
we would have the field. * * * i think it
would be the worst thing that could happen to
United States Steel, because the people would
not stand it. We do not want those conditions, '
and instead of trying to bring about such condi-
tions as that, we have done what we could,
fairly and justly, to prevent it and to assist our
competitors T. H., vol. 2, p. 1706.
Gary says if they went into competition the
competitors would be wreclcp^ l los
if tariff were wiped out and ttc
would have a monopoly of tt^^^^^^^^^^^^^^ ^^
country" _^
UNITED STATES STEEL COEPORATION. 4511
COMPETITION— Continued .
Restraint op — Continued.
and Gary also said, "the United States Steel Cor-
poration is pretty strong and could stand re-
duction (of tariff), I have no doubt, and still
prosper" T. H., vol. 2, p. 1740.
"I do believe large numbers (of competitors)
would be driven out of business if we were will-
ing to drive them out, either because we thought
it was right to do so or good policy to do so "
(Gary) T. H., vol. 2, p. 17.51.
USSC could make prices so low as to drive com-
petitors out of business, and then mark prices
up again T. H., vol. 2, p. 172S.
Gary says, "I will not say that in the competition
we could not drive a good many of our competi-
tors out of business" T. H., vol. 2, p. 172-8.
"it is not because of our hold on the market.
It is because of our ability to produce cheaper
and because of our ownership in the inde-
pendent concerns, such as the railroads, the
steamship lines, etc., which give a large
credit from the United States Steel Corpora-
tion's standpoint" T. H., vol. 2, p. 1728.
"if we were in destructive competition, in self-
defense, of course, we would mark down to
pretty nearly our cost, and the result would be
that the competitor who could not manufacture
as low as we could would go out of business in
in the course of time" (Gary) T. H., vol. 2, p. 1729.
small plants can not and do not compete with the
USSC T. H., vol. 2, p. 1851.
plants that make steel and buy everythiag or
have not raiboads are not really steel plants . . T. H., vol. 2, 1850-11851.
steel can not be produced on a small scale in this
country T. H., vol. 2, 1852.
competitors must compete against all the sub-
companies 3 — 104.
control of DM. N & DIR. is not factor in power to
control business of competitors, because rates
subject to commissions 3 — 111.
in competition USSC. would make profit from
ore companies and railroad companies and
could reduce cost of production and sell
cheaper than competitors 3 — 113.
cheaper cost of production of USSC. would enable
it to mark down prices and USSC. could drive
a good many of our competitors out of market. . 3 — 113.
USSC. has avoided policy of driving competitors
out of business "particularly because it seemed
to us our motives might be better understood
when these questions of monopoly and restraint
of trade were under consideration 5 — 237.
competition has ended (Gary) and there should
be fixing of prices 5 — 523.
Gary does not think competition can continue in
steel business except by Government control. . . 3 — 99.
Government control would imply absence of
competition 3 — 99 .
Garv thinks we haVB. mmp to hop thp aurrondpr
5—99-100.
'f"'" and
mti'Tiiiprl 6—343.
4512 UNITED STATES STEEL CORPORATION.
COMPETITION— Continued.
Restraint of — Continued.
since 1900 there has been no destructive compe-
tition, because conditions have been changed
and the introduction of the law of reason 6 — 349.
law of reason 6' — 349.
law of reason has existence prior to 1900 6 — 350.
free competition exists, but not destructive com-
petition 6—350-351.
elimination of competition as result of common
sense 6—351-352.
''independent," Temple says, is a misnomer, un-
less for a man to independently bankrupt him-
self 24—1737.
statistics exchanged, would show a producer
whether he was exceeding his proportion of
business 2^-1737.
Gates favored open shop 1 — 51.
Gates does not think that condition exists now. . . 1 — 51.
Carnegie pursued competitive methods when he
was in business 4 — 197.
Gay ley had favored the free competition method . . 7 — 372 .
before the formation of the USSO. there were a
number of concerns independent of each other,
and "they corrected relapses from a profitable
price by these arrangements and maintained
them through self-interest and money-making " 8 — 432.
exchange of imformation as to manufacturing,
capacity, and costs took the place of pools f4 — 1719.
after 1904 there was an association for the "pur-
pose of preparing statistics tor these gentlemen .
to meet from time to time, and compare their
methods of manufacture, costs, probable de-
mand, and supply, but no hard-and-fast allot-
ment or prices, after December, 1904 ^4 — 1719.
Temple formerly Association Commission has not
heard of competition since 1904 ^4 — 1719.
since the formation of the USSC. there has been
an exchange of information, and it is easy for
one manufacturer to approximate very closely
to the cost of another because ore supplies and
fuel are from one general source, and all mills
are adapting as near as possible the same appli-
ances 8 — 433.
" It you had asked him if he had not a sort of
understanding which had the same result as
the agreement, he would have had to tell you
that he had." (Carnegie of Pelton) Tff. H, vol. 2, pp. 1785-
1794.
from the very beginning steel makers have been
in practical fraternity and it would be natiu-al
for them to take up the question of a fair uni-
form price and keep it. This practical fra-
ternity continues to exist now more than ever. . 8 — 461.
depression in steel business in 1907 existed, but
there was no need for agreements. Gayley says
"It was done through the influence of the cor-
poration, but not its dominating position in the
trade." Gary dinners began about that time,
in 1907 7 — ^7i_«79
competing firms exchanged info^^^^^^^^^^^^^^^:^^
to costs, after termination ot p-
UNITED STATES STEEL, COBPOBATION. 4513
COMPETITION— Continued.
Resthaint op — Continued.
methods ot 20 years ago can not be used because
the steel business has become so perfected, and
the building of a new steel plant is as unlikely
as the building of a new great trunk-line rail-
road iS— 1289-1290.
constant intercourse and fraternal feeling has
existed among rail makers from the beginning. 7 — 367.
unwritten law has been for companies to confine
themselves to their own lines and not to take
tonnage from competitors Natl. Tube Com. Min.,
Jan. [25, 1901.
Temple, former commissioner imder the pooling
agreements, testified: "In the four to seven
years that we operated under those agree-
ments those people had learned what you were
pleased to term a while ago the golden rule of
business, that the Samson act, although famous
in history, is not an advisable everyday occur-
rence in twentieth century business affairs,
and everybody was perfectly willing to live
and let live. They deemed as especially valu-
able the information they were giving back and
forth from one to another, as to their manufac-
turing, as to their capacities, as to their costs,
and all that sort of thing, and they interchanged
ideas just as freely as they ever did before. But
it was not done in the form of any pool, associ-
ation or agreement. They would have dis-
cussions from time to time as to general busi-
ness affairs, prospects for the future, the growth
of the coimtry, the growth of the business, and
would exchange ideas on general matters of
that sort;" and when asked whether they re-
garded these agreements as a debt ot honor to
be paid more promptly because not enforceable
by execution (i. e., by legal process), he said
"so far as I know, Mr. Chairman, there was
never any agreement as to price, allotment, or
distribution after December, 1904. There was
an association for the purpose of preparing sta-
tistics for these gentlemen to meet from time to
time, and compare their methods of manufac-
ture, costs, probable demand and supply; but
as to any hard-and-fast allotment, any hard-
and-fast prices, any hard-and-fast distribution,
on and after December, 1904, to the best of my
knowledge and belief, it ceased to exist." He
was then interrogated and answered as follows:
"The Chairman. Could they maintain, by these
gentlemen's agreements that level of prices and
prevent that destructive competition of which
you spoke in the Carnegie regime?
"Mr. Temple. They say the leopard can not
change his spots nor the Ethiopian his skin;
but the leopard does move from place to place,
which, in one figure of speech, is a changing of
spots. I would not presume to say how closely
they could follow the rules they have learned
under the bitter warfare preceding 1907 and
the different conditions fi'om 1897 to 1904,
but I have not heard of any destructive com-
petition aincfi that ti"'" FurtVioi- tV.aT> that I
2.^—1718-1719.
4514 UNITED STATES STEEL COBPOEATIOX.
COMPETITION— Continued .
Resteaint or — Continued.
after dissolution of pool agreements, members
would still not exceed tonnage or explain
reason, and would not unsettle prices 24 — 1735.
lately one concern did announce a cut in prices. 24 — 1735-1736.
generally speaking manufacturers would like to
see prices maintained, but not for the benefit
of only one or two CSCO. Dir.,
Dec, 21, 1908.
fluctuation in price has been prevented simply
by the manufacturers meeting and talking the
matter over generally, and expressions of
opinion as to the condition of trade, without
entering into any agreement or anything of the
kind. They simply meet and talk it over.
During the life of the Steel Plate Association
they certainly not only talked it over but
went further and agreed to the prices 12 — 811.
Glasgow Iron Co. can sell at 1.25 (although ruling
price is 1.35 cents for plates); but they would
not do it 12—iV2-
cutting prices in bad times would cause inordi-
nate increase in good times 4 — 196-197.
after termination of pool agreements, the meet-
ings that were had were as effective in the
steadying of prices and avoiding of destructive
competition as the agreements themselves had
been because there was personal contact and
exchange of data 24—1738-1739.
this results in enlightened cooperation, growing
out of knowledge of each other's business 24 — 1739.
formerly agreements were made to maintain
prices, but latterly that by exchange of prices
and information has enabled to maintenance
of prices IS— 1297 .
Gary dinners allowed exchange of information
as to prices and purpose to maintain at certain
point, and each acting on other's information
kept prices approximately the same 18 — 1297.
steel plate agreement proved that a uniform
market, as nearly as possible, was a decided
advantage to evsrybody concerned ; and the aim
has probably been to work along on the even
tenor of our ways, and "in talking the matter
over at a meeting, if the general expression of
opinion showed that there was nothing to be
gained \>y the decreasing or lowering of prices,
and that we had better just let things move
smoothly along, if everybody so expressed
themselves, we naturally would do it." (C. 13.
Shoemaker, president, Glasgow Iron Co.), and
they have been running smoothly along, the
last few years, without doing anything much . . 12— SI 1.
"destructive" competition is an attempt on the
part of each one to keep his works in full oper-
ation regardless of co.^t 6 — 322.
Gary dinners aimed to prevent "destructive"
competition and have been sucrc>.-iHful to a
large extent 5 — 271,
UNITED STATES STEEL COEPOEATION. 4515
COMPETITION— Continued.
Kestraint op — Continued.
Schwab, in the tariff hearings, testified that all
parties are selling rails (standard) at the same
price, and "if I were to vary that 10 cents a ton
to-day I would precipitate a steel war, to use
such a word or expression, that would result in
running my works without a profit. Every-
body, by tacit and mutual understanding,
feel the same thing about that. I would not
vary the price of my rails under any circum-
stances, not if I knew it was to get 100,000
tons in orders, for the reason that my com-
petitor next door would put the price down to
|l a ton, or half a dollar a ton even, and we
would be in a position where we would be
running without any profit at all" T.H., vol, 2, pp. 1650-1651.
Gary does not think experience of 10 years main-
taining price $28 for rails can be repeated and
avoid Sherman law 3 — 99.
at Gary dinners, there is no understood agree-
ment. It is the general broad principle that
if a certain price is felt to be a fair and a right
price, each one for himself feels that he ought
to maintain that price and not vary from it to
the detriment of his fellows witho^lt he should
let them know, but without any agreement,
express or implied, to that effect 11 — 693.
rails prices excepted from following: "During
the week, the corporation decided to cut loose
entirely from the policy of cooperation, and
prices to-day on all products excepting stand-
ard rails are absolutely open CSCO. Dir.,
Feb. 22, 1909.
control of prices T. H., vol. 2, 167.
"price cutting in both structural and plates"
admitted by some eastern makers; and CSCO.
has been getting "our relative proportion of
the tonnage placed in each line " by hard
work; and "with this price cutting uncovered
now, we believe it will cease " CSCO . Dir.,
Sept. 21, 1908.
if USSC. reduced price of rails to $22 all others
would have to reduce the price 18 — 1296.
as to steel rails, competititors could not make
under the price of the USSC T. H., vol. 2, p. 1727.
128 price for rails has not' been disturbed since
formation of USSC; if anybody should under-
take to disturb it now, USSC. is in a position
to make it unpleasant for him if they want to. . T. H., vol. 2, p. 1755.
price of rails was fixed by agreement in 1895 and
1896 at $28 and remained that for several years.
In 1898 price went to $17.50, and after that was
again fixed at $28 5—422.
$28 price of rails was fixed by manufacturers,
who have no agreement, or regular meetings,
but who met in Gary's office, and he says they
would not change price without telling others
he was going to do it T. H., vol. 2, pp. 1726-
^ ^ _ 1727.
reason competitors consulted USSC. before rais-
ing prices was because they knew theyc ould
4516 UNITED STATES STEEL COEPOEATION.
COMPETITION— Continued.
Restraint op — Continued.
independents did not cut the price from §28 to
■$26 because it was better to make §4 per ton on
half capacity than $2 per ton on full capacity
for the reason (as stated by Gayley) "the
maker is making no more money and he is
wasting his raw material and wearing his ma-
chinery without making any more profit."
Grayley said he would answer in this way from
his experiences in connection with the steel
business ^ — 374.
$28 price for rails maintained 10 years S — 99.
rails, principal competitors are: Lackawanna
Steel Co., P. & I. Co., Pennsylvania Steel Co.,
Cambria I. & S. Co., Bethlehem Steel Co.,
Maryland Steel Co 4—193.
$28 has been price of rails for many years 4 — 193.
no competition in rails, as railroad companies ex-
change information, being in frequent inter-
course, and do not cut prices A — 195-196.
when pools were dissolved the prices fluctuated,
but since the formation of USSC. the price has
been .528 for rails 6—347.
competition resulted in fluctuation in rails 6 — 342.
at time of formation of Federal steel there was
one interest whose policy was to keep its mills
full 5—91.
price of rails in 1898 was reduced $33 to $28 as
result of conferences and disclosures of respec-
tive lines of business 3 — 92.
price of rails $28 since because some of us (see
Gary) would never consent to increase, al-
though urged 3 — 92.
Gary says they can keep the price down, but
they can not keep it up 3 — 92.
competitors have attempted to put up prices,
but USSC. has declined to put them up 3 — 92.
nobody has suggested making price lower than
$28 on rails 5—93.
restrictive agreements are made in Great Britain,
Germany, France, Austria, and Italy .:;— 95.
rail price as compared with cement, etc., affected
by fact rails are sold only to railroads 6 — 361-362.
rails have remained at $28, although cement has
reduced owing to cheaper production 6 — 355.
rails sold in neutral markets, Gary and Corey
appointed committee with power in regard to
making some arrangement with foreign pro-
ducers USSC. Fin. Com.
\ov. 1, 1904.
rails price necessary to shade $20 a trifle at mill
to compete CSCO. Dir.,
July 20, 1903.
competition always exists by reason of the variety
in quality, etc 7 — 370.
reason competitors consulted USSC. before rais-
ing prices was because they knew they could
not sell rails for more than $28 if USSC. sold
at $28 5—97.
causes which would cause faUur
competitors, inability of rnmpi^— —
UNITED STATES STEEL COEPOEATION. 4517
COMPETITION— Continued.
Restraint op— Continued.
outsiders may undersell USSC. but Gates sug-
gests that the USSC. having large stock could
put screws on buyers in lines not sold by com-
petitors i— 52.
"Raw material, ore, etc. —
control of raw material is more dangerous to com-
petition than control of the means of convert-
ing raw material into finished product 9 — 540.
control of 75 per cent of ore and 75 per cent of
coking coal, although possibly not a monopoly,
would be a position that would substantially
conform to a monopoly 9 — 538.
control of a commodity becomes a combination
value above the actual value of the property
and because of the control caused by the
elimination of competition, a company can
float an inflated lot of securities, and after-
wards "turn water into wine" 9 — 480.
$700,000,000 of the, capitalization of USSC.
(one-half) in 1901 "was value due either to
increased earning power from elimination of
competition, concentrated ownership of the
basic natural resources, iron ore and coal, or
in some degree integration efficiency." As
stated in Smith's report (p . vi) 9 — 479-480.
control of greater part of ore land by USSC. pre-
vents unlimited competition, even though
there be independent concerns 9 — 533.
if the ore, or the natural resource upon which
the industry is based, is in the hands of com-
paratively few companies, although those
companies be rivals at present, unlimited
competition does not exist 9 — 534.
price of pig iron recommended by president of
USSC. to be maintained by purchases, and
even by shutting down furnaces for the benefit
of finished products USSC. Ex. Com.,
May 5, 1903.
{See "Pig iron" for purchases, etc., and effect
upon prices.)
ore and pig-iron people reaffirmed prices and
bar-iron people advanced their prices prac-
tically $3 a ton, making the basis $1.50 Pitts-
burgh, for both east and west. "That is two
to two or three causes, one, the advance in
the price of scrap, and another the fact that
they were not really getting as much business
at the low price as they had been at the higher
figure, and furthermore to their willingness
to cooperate with the steel people in an
endeavor to hold this market over the depres-
sion" CSCO. Dir.,
Feb. 10, 1908..
discrimination against Mahoning and Shenango
Valley, Ohio, furnaces in delivery of coke to
USSCO.'s own furnaces caused delay in
delivery of 116,000 tons of iron on contracts
with USSC USSC. Ex. Com.,
Mar. 17, 1903.
coke price regulated by sales at 5 or 10 cents
At- n^,Ar.., ..o„„. t'w,. „»ii *\,i^ -,nTrp at a
" USSC. Ex. Com.,
Oct. 14, 1902.
4518 UNITED STATES STEEL COEPOEATIOK.
eOMPETITION— Continued.
Restraint op — Continued.
Raw'material, ore, etc. — Continued.
subsidiary companies will not bid against each
other in bidding for pig iron USSC. Ex. Com.,
Apr. 20, 1901.
all steamship companies combined in Pittsburgh
Steamship Co USSC. Ex. Com.,
May 16, 1901.
sales of steel to independents always made in
consideration of the subcompany whose sales
of frnished product would be affected Gen. Man. Sal. Min.,
Jan., 1903.
data of competition to be kept Gen. Sal. Man. Min.,
June 1, 1904.
complete record or description of every plant in
country any way competitive made by Car-
negie Co Gen. Sal. Man. Min.,
Aug. 21, 1907.
records of competition of each company to be
kept Gen. Sal. Man. Min.,
Sept. 19, 1906-
Oct. 17, 1906.
data complete for Carnegie Co. but not complete
in detail for other companies Gen. Sal. Man. Min. ,
June 24, 1908.
to be compiled as to customers who buy direct,
not jobbers Gen. Sal. Man. Min.,
July 15, 1906.
capacity of competitors in operation to be
reported to presidents Gen. Sal. Man. Min. ,
Nov. 20, 11908.
data as to completed (except Steel & Wire Co.
not heard from) Gen, Sal. Man. Min.,
Apr. 5, 1908.
data complete for Carnegie Co., but not complete
in details for other companies Gen, Sal. Man. Min,,
June 24, 1908.
data to be compiled as to customers who buy di-
rect, not as to jobbers Gen. Sal. Man.,
July 15, 1908.
weakness of competitors is referred to as cause for
customers coming to CSCO. because they are
not satisfied with competitors CSCO. Dir.,
Mar. 20, 1911.
competitors, when demand is not equal to pro-
duction, have to cut under CSCO's price a
little to get business; but this is not done in
the base price, but a little inching under in ex-
tras and things of that sort CSCO. Dir.,
Mar. 20, 1911.
competitors are willing to surrender the right to
route material, which CSCO. always insisted
upon CSCO. Dir.,
Jan. 3, 1911.
raw material is not to be sold to regular trade. . . . Gen. Sal. Man. Min.,
Mar. 21, 1906-
Apr. 18, 1906.
seniifinished products are not to be sold to out-
siders who compete with subcompanies in
finished goods 2$ 1634
CSCO. could book enormous tonnage with inde-
pendents, but constituent con
mg for deliveries
UNITED STATES STEEL COBPOEATION. 4519
COMPETITION— Continued.
Restraint or — Continued.
Raw materials, ore, etc — Continued,
resolution making it compulsory to purchase all
supplies within the corporation, and prices
must be lowest named to most favored custo-
mer, regardless of quantity Gen. Sal. Man. Min.,
Sept. 21, 1904.
notwithstanding absence on account of pools,
USSO. was formed to avoid possible returning
competition and for economies and centered
control £4 — 1722.
» large concerns would make their own raw mate-
rial and semifinished product and buy then-
own ore 24 — 1723.
detailed report of new plants proposed or under
construction by competitors USSC. Fin. Com.,
Jan. 25, 1910.
more shutdowns in future than in the past will
result from refusal to sell unfinished goods by ,
CSCO. and National companies CSCO. Dir.,
July 1, 1902.
raw-material shortage among customers causes
shutdowns Gen. Sal. Man. Min.,
Apr. 17, 1907.
"on forgings, the mills which are in this business
are holding up the price of billets and pulling
down the price of finished f orgings, which is
practically putting the independent forge
makers out of the market" CSCO. Dir.,
Feb. 8, 1909.
"on shafting, Jones & Laughlin are selling at a
price which their competitors can not afford
to meet after paying the market price of 1.40
per cent for bars" CSCO. Dir.,
Feb. 8, 1909.
"there is a little competition took by peculiar
arrangements which are being made " CSCO. Dir.,
Feb. 8, 1909.
in axles is extraordinary, considering fact "that
our competitors (i. e., of CSCO.) have to buy
their billets at a figure that does not permit of
more than $2 per ton for conversion " CSCO. Dir.,
July 13, 1904.
reduction of 15 cents per box on tinplate, fol-
lowed by shutting down of mill of Youngs-
town Iron, Sheet & Tube Co. and buying of
black plates from AS & TPCO CSCO. Dir.,
July 25, 1904.
National Tube Co. reduced rates on merchant
pipe $3 or $4 a ton to meet competition USSC. Fin. Com. Sup.
Ext.,
Dec. 22, 1903.
National Tube Co. had control of 85-90 per cent
of total tube business at organization of USSC. 1 — 41.
low prices made to meet sales by Colorado Com-
pany in West Gen. Sal. Man. Min.,
Feb. 17, 1904.
Mr. Beegle, of Union Drawn Steel Co., says his
contracts have been unsettled by ASWCO, and
Jones & Laughlin in quoting lower price than
— CSCO. Dir.,
Nov. 7, 1910.
4520 UNITED STATES STEEL CORPORATION.
COMPETITION— Continued.
Restraint op — Continued.
Raw material, ore. etc. — Continued,
only 2 firms who make any considerable quantity
of spikes, bolts and tie plates, i. e., the USSC
and Dillworth Porter Co., Pittsburgh. Dill-
worth Porter Co. has been buying 65,000 tons of
steel from USSC, but must have lower prices.
Unanimous vote against purchasing this plant. USSC. Ex. Com.,
agricultural people independent of International
Harvester Co. not to be given lower prices Gen. Sal. Man. Min.
Mar. 4, 1902.
Gen. Sal. Ma
Feb. 20, 1907.
International Harvester Co.'s competition ''has
become so serious as to threaten the existence
of a good many of the smaller agricultural con-
cerns. They are extending their operations to
almost everything the farmer needs. They
•could not manufacture all the binders needed
in this country, and are making her lines of
agricultural machinery" and wagons. "They
make all their own steel and all this tonnage has
been taken away from the steel manufacturers."
Price made to independent committee by CSCO
of 1.40 cents for 15 days and afterwards price is
to be 1.50 cents, which was not satisfactory to
independent agricultural people, who wanted
price of 1.30 cents CSCO. Dir.,
Apr. 2, 1906.
"the company should withhold any data which
might encourage the promotion of competitive
enterprises, and it was recommended that
all information should be passed upon by the
Ex. Com. before being given out" (m re appli-
cation of Poor's Manual for balance sheet of
National Tube Co USSC. Ex. Com.
Apr. 26, 1901.
concessions desired by CSCO. from Harvey
United Steel Co. (Ltd.), one of which "is that
we want to be protected from Midvale to the
extent of the royalty on the armor" CSCO. Dir.,
June 27, 1904.
competitors are following the lead of the CSCO.
in making contracts only to Apr. 1 CSCO. Dir.,
Sept. 20, 1909.
CSCO making contracts to July 1 and rorapHlitors
doing it ". CSCO. Dir.,
Oct. 25, 1909.
Republic Co. cut prices some time Ix-fore hparing
(Toppmg) ;7— 1251,
Republic Co. lowered prices recently to meet
competition and to increase business and were
successful in that.- n — 1263,
reductions of prices may be destructive oimpeti-
tion to Republic Co n — 1271.
small operator could sell at higher price than
USSC. if USSC. was all booked up so that it
could not make deli\'cry in time required on
small order, e. g. , 30 days 24 1733.
when the users of plates would pa%-, the makers
were not prevented by agreement from getting
higher prices m n^o
USSC.'S policy has been to m
too high and not too low
Gary feared that prices had bee —
UNITED STATES STEEL CORPORATION. 4521
COMPETITION— Continued.
Restraint of — Continued.
Raw material, ore, etc. — Continued,
weakness of competitors is referred to as cause
for customers coming to CSCO., because they
are not satisfied with competitors CSCO. Dir.,
Mar. 20, 1911.
competitors, when demand is not equal to pro-
duction, have to cut under CSCO.'S price a
little to get business; but this is not done in the
base price, but a little inching under in extras
and things of that sort CSCO. Dir.,
Mar. 20, 1911.
Lackawanna Co. could not get orders while they
can be filled at |2 under their price CSCO. Dir..
Dec. 21, 1908.
cooperative policy — "people are getting better
results under the cooperative policy" CSCO. Dir.,
Dir. Dec. 21, 1908.
Lackawanna is running worse now than at any
time since the panic. (See Directors' Minutes
CSCO. Feb. 22, 1909) CSCO. Dir.,
Mar. 8, 1909.
Cambria took an order at $22.70 for 200 to 300
forging blooms from American Locomotive
Works, but afterwards refused to take more
except at $25 mill plus full freight. They
wanted to sound the market on this small lot,
and when they learned the situation "came
right up to the price we want" CSCO. Dir.,
Mar. 8, 1909.
independents would like to stick close to 1/20
cent and 1/30 cent prices, but in some cases
quote lower CSCO. Dir.,
Mar. 8, 1909.
1.30 cents for plates and shapes on one specific job
delivered to King Bridge Co., Cleveland CSCO. Dir.,
Mar. 8, 1909.
1/20 cent price on bars quoted to Mr. Albright of
Buffalo Bolt Co., who said Lackawanna could
not nearly take care of them, could give them
neither the finish nor delivery required, and he
was willing to pay us any price that we wanted.
This is just an illustration of how the market is
centralizing around us, and I believe we are
going to get the full benefit of our position and
our prices" CSCO. Dir.,
Mar. 8, 1909.
Eastern mills are already feeling very keenly the
effects of the open market. Worth, according
to our advices, has taken off 2 more furnaces,
operating only 4 out of 16; and Lukens has only
3 running out of 16 CSCO. Dir.,
Mar. 15, 1909.
Bethlehem has withdrawn from the West
because they can not meet Illinois prices on
account of the freight CSCO. Dir.,
Mar. 10, 1909.
American Bridge Co. losing tonnage at prices $5
to $11 under their bids and in some cases $2 to
$3 under their cost Gen. Man. Sal. Min.,
Dec. 19, 1906.
American Bridge Co. losing orders at $8 to $4
Kt^i/^TiT t\^^i^ Kt^ ^^i-o-^c Gen. Sal.' Man. Min.,
Oct. 19, 1904.
Gen. Sal. Man.,
Dec. 16, 1908.
4522 UNITED STATES STEEL COEPORATION.
COMPETITION— Continued.
Restraint of — Continued.
Raw materials, ore, etc — Continued.
condition of competitors to be furnished monthly. Gen. Sal. Man. Min.,
Dec. 16, 1908.
outside bridge companies combination of, Roberts
stated as to the small concerns as they are now
they did not amount to much in a competitive
way, but he is afraid they would become factors
if consolidated USSC. EX. Com.,
May 13, 1901.
Mr. Conger has scheme to combine all bridge com-
panies outside of American Bridge Co USSC. EX. Com.,
May 6, 1901.
eliminated by failure of Milliken Bros. Basic
Steel Co. and probable failure of Eastern Steel
Co. "This will eliminate all of our (CSCO.)
new competition outside of Bethlehem and
make our proposition on the whole difficult". . CSCO. Dir.,
July 1, 1907.
Milliken Bros, capacity shut down on account of
high price of raw materials CSCO. Dir.,
June 24, 1907.
Basic Steel Co. shut down rolling mill probably
for good CSCO. Dir.,
June 24, 1907.
Milliken Bros, to be taken out of receivership,
and going ahead with 2 blast furnaces, billet
and bar mills. To use ore and eastern lime-
stone, and will have to figure on getting coke
out of Pittsburgh region CSCO. Dir.,
Nov. 9, 1908.
purchase of Risdon Iron Works, San Francisco, as
warehouse having wharf and railroad connec-
tion. (Minutes do not state if Risdon works
are continued as manufactory as well as ware-
house.)
$1,600,000 asked, option to be obtained for
$1,250,000, recommended USSC. Fin. Com.,
Mar. 28, 1911.
Tufts & Co. sold for USSCo. 60 or 75 per cent of
general products of wire in Texas (Gates) 1 — 52.
Canadian Bridge Co. makes handsome offer to
CSCO. This is export business to Canada.
(See Minutes.) CSCO. Dir.,
May 11, 1903.
Steel Plate Association formed to avoid destruc-
tive competition, to establish and maintain
reasonable rates li — 651.
plants have steel mills and also erecting plants
could quote prices below the pool prices if
allowed to make lump bids, which was prohib-
ited by the pool in the Structural Association. 24 — 1727.
some plants get business through geographical
location 18—1294.
In pig iron, the Birmingham district absolutely
controls the market of Alabama, Georgia,
Tennessee, Mississippi, Louisiana, and a large
part of Texas (except part of Texas supplied
from Colorado Fuel & Iron Co.) and as far as
Chicago, and they sell a great deal of pig iron
in the Pittsburgh district, and frequently ship
to England :Z5— 988.
Gary Pittsburgh funaces can ^i^bh^i^hhh^^^^^^
iron in States south of Ohi(
against Birmingham
UNITED STATES STEEL COEPORATION. 4523
COMPETITION— Continued.
Restraint op — Continued.
Raw material, ore, etc. — Continued.
Alabama district is a competitor of every district
in the country, selling in Chicago and selling
iron in Pittsburgh 15 — 988.
Lake region ships ore as far south as the Ohio
River to the furnaces at Ashland, and to Central
Ohio and Ironton, and in prosperous times as far
south as Big Stone Gap, Va 15 — 988.
Virginia district is a competitor of Alabama dis-
trict in northeastern market 15 — 988.
Birmingham sells at Pittsburgh base price adding
Pittsburgh freight rate Gen. Man. Sal. Min.,
Feb. 19, 1908.
TCI. can meet other competitors at Ohio River,
and in general scope of district they can do
business in depends on freight 15 — 1013.
COOPERATION. {See Competition and combinations.) —
"Generally speaking manufacturers would like to see
prices maintained, but not for the benefit of only one
or two, and I do not know how long the situation
can be held under the conditions that exist" CSCO. Dir.,
Dec. 21, 1908.
"people are getting better results under the cooper-
ative policy" CSCO. Dir.,
Dec. 21, 1908.
TJSSC. "during the week the corporation decided to
cut loose entirely from the policy of cooperation, and
prices to-day on all products, excepting standard
rails, are absolutely open " CSCO. Dir.,
Feb. 22, 1909.
first effect of USSC. cutting loose entire from policy
of cooperation was to eliminate jobbers ' ' to whom
we have been giving a concession in price " CSCO. Dir.,
Feb. 22, 1909.
after corporation cut loose from policy of cooperation
the "first thing done by our competitors was to
immediately set prices down $6 per ton " CSCO. Dir.,
Feb. 22, 1909.
many large customers returned to CSCO. after corpo- •
ration cut loose from policy of cooperation CSCO. Dir.,
Feb. 22, 1909.
corporation cutting loose from policy of cooperation
"has eliminated Cambria as a factor on the basis on
which they have been talking recently, and both
the Pressed Steel and Standard (car companies)
people have gone out now, not only to make money
for themselves, but for us also " (CSCO .) CSCO . Dir. ,
Feb. 22, 1909.
customers think "that our action is a bluff, and that
the cooperative idea is still in existence, " and that
we have simply fixed prices at 1.20 cents for bars
and 1.30 cents for shapes and plates instead of 1.40
cents and 1.60 cents CSCO. Dir.,
Mar. 1.
competitors are following the lead of the CSCO. in
making contracts only to April 1 CSCO. Dir.,
Sept. 20, 1909.
prices to be maintained by USSC. purchasing agents
in view of stand taken by USSC Gen. Sal. Man. Min.,
Dec. 18, 1907.
-'— '-■ '- " " ' ' , but not to
:22— 1552.
4524 UNITED STATES STEEL COEPOEATION.
costs-
General —
different costs and different ways of making up
costs make it impossible to get figures that can
be truthful T. H., vol. 2, p. 1799.
Gary's figures "are all uniform in this, that they
are the work of interested parties who are in-
capable of rising, as we would be ourselves if
we were interested — of rising to the broad facts
of the case" T. H., vol. 2, p. 1797.
are interchanged between members of pools 26 — 1732 .
interchange of costs in detail suggested by Schwab
and stated to be done by independents 17 — 1277.
are known to competitors 24 — 1732.
has been decreased by USSC, and Perkins be-
lieves the public have had the benefit 22 — 1566-7.
Perkins could not specify any reduction in the
cost of production of the products of the USSC.
in the last 10 years 22—1655-6.
cost of assembly is one of the important elements
to be considered (Gary) T. H., vol. 2, p. 1694.
cost of delivery to market S — 83.
Companies —
Carnegie testified: "Now if the mode of keeping
accounts of cost that we adopted and also held
to were held to now, I do not think that the
cost of steel rails to any concern in this country
would be as great as either Judge Gary or the
other witnesses have testified " T. H., vol. 2, p. 1782.
Carnegie does not think any corporation could
keep its cost on steel rails separate from its gen-
eral work. It would have to be established... T. H,, vol. 2, p. 1789.
Carnegie says that if steel rails cost $26.50 at Har-
risburg (as testified by Felton, Tariff Hearings,
vol. 1599), and sold for .$28, why is their's (i. e.,
Penn. Steel Co.) above par, and why does not
that company change its management T. H., vol. 2, p. 1790.
Carnegie testifies : " I do not believe that you can
get those figures that you can rely upon, be-
eause there are different works, and because
there are different ways of making up costs.".. T. H., vol. 2, p. 1799.
Schwab does not take the cost of ore as the United
States Steel Co. could mine it from the same
mines that we mined it when we made the
cheap steel T. H., vol. 2, p. 1800.
Penn. Steel Co. was in business before the CSCO.
started. It shows the grossest mismanagement
if his cost is .$26. .50 (i. e., Penn. Steel Co.) per ton
average, Ijut his statement may be based upon a
short period of production, during dull times —
products probably not one-half the average.
This would bring the cost very high. Let him
show you his book cost for five years past. His
statement without period may mislead you.
(Carnegie.) T. H., vol. 2, p. 1828.
of the Carnegie Co. are considerably less than
that of any of the other companies (Corey,
president, so stated) CSCO. Dir.,
Sept. 24, 1901.
Tube Co.'s cost 37 cents less in six months to June
30, 1905, than in 1904 <g_iQoo^iQQi
president (USSC.) stated genera
was lowest Corporation ever h
UNITED STATES STEEL CORPORATION. • 4526
CO STS — Continued .
Companies — Continued .
Birmingham can make pig iron about $4 a ton
cheaper than Pittsburgh 15 — 1031.
depreciation was not added in calculating south-
em cost 15 — 1031 .
difference between Pittsburgh and Birmingham
is in the freight by water and by rail, and the
lower plant installation and cheaper fuel.
Largely the difference is in the iron ore and as-
sembling cost 15 — 1032.
Gary plant will ultimately show the world the
lowest cost above raw materials 15 — 1032.
60 nail machines can be bought for $24,000 USi^l '. Fin. Com.,
Apr. 4, 1911.
Pig Iron. (See Pig iron.) —
of pig iron is reduced now below former cost by
use of gas which was not done in old days T. H., vol. 2, p. 1831.
of pig iron should be reduced by cement profit
on slag T. H., vol. 2, p. 1831.
pig iron cost is about $14 T. H., vol. 1, pp. 1634,
1764.
Steel. (See Steel.) —
one-third of entire cost of a ton of steel is absorbed
in transportation cost 18 — 1296.
is one-third labor, one-third transportation, and
one-third miscellaneous 18 — 1300.
fewer men needed in many departments which
reduces modem cost T. H., vol. 2, p. 1832.
notwithstanding higher labor cost here, the cost
of making steel is as cheep as that abroad on
account of large plants and economic condi-
tions J5— 1303.
great improvements have cheapened the process. T. H., vol. 2, p. 1831.
$12 for rails (letter of Schwab) T. H., vol. 2, p. 1628.
average cost of Bessemer pig iron $14.01 and
$14.52 for rails T. H., vol. 2, p. 1764.
$7.50 cost of converting ton of pig iron into rails. . T. H., vol. 2, p. 1634.
$3.75 cost of converting ton of pig iron into rails,
1899 T. H., vol. 2, p. 1635.
structural costs about $3 or $4 more than rails to
make T. H., vol. 2, p. 1649.
plates cost about $3 or $4 more than rails T. H., vol. 2, p. 1649.
$1 more a ton to make billets than rails T. H., vol. 2, p. 1648.
"Schwab told me (Carnegie) that he was not
speaking for any steel mill; that he got his
information (of cost of steel rails at $21.50 in
1908) from a private producer of ore in Pitts-
burgh " T . H . , vol . 2, p. 1782.
Schwab calculated price of other steel products
upon price of rails T. H., vol. 2, pp. 1649,
1782.
Schwab's figures were not manufacturer's costs
and not a steel company's costs T. H., vol. 2, p. 1796.
explained in Ways and Means Committee hear-
ings V .rs— 1340.
Schwab took the cost of ore in the market, not
what the USSC. can mine it for T. H., vol. 2, p. 1800.
— — — .^sn Carnegie
stake T. H., vol. 2, 1808.
4526 UNITED STATES STEEL CORPORATION.
COSTS— Continued .
Steel — Continued .
figures given by Gary before Tariff Hearings, vol.
2, were from 1907 and for time of hearing; and
Gary says everything was higher in the steel
business then than it is now T. H., vol. 2, pp. 1721-
1722.
Knox-Smith's costs in tariff hearings are average
for companies making 93 per cent of rails T. H., vol. 2, p. 1764.
average costs of all companies for rails $22.39 or
$22.23, according to method of computation. . . T. H., vol. 2, p. 1764.
$26.50 per ton average cost of Penn. Steel Co.
shows gross mismanagement, or is misleading
because based upon a short period during dull
times of products not one-half the average,
which would make the cost very high, and yet
would mean nothing. (Carnegie.) T. H., vol. 2, pp. 1783,
1828.
Laboh. (See Labor.) —
labor is the only element of cost that enters into
the cost of manufactured goods, in addition to
raw material 18 — 1352.
labor is 33J per cent of cost of steel 18 — 1352.
labor cost is greater in United States than Ger-
many 18—1348.
in labor cost, the wages per man would have
nothing to do with it T. H., vol. 2, p. 1817.
labor cost is not rate of wages T. H., vol. 2, p. 1817.
wages have increased, but total cost of labor has
decreased T. H., vol. 2, p. 1817.
labor cost musi not be taken per man, but with
reference to output per man T.H.,vol.l,pp, 1842, 1843.
output per man has largely increased. (See
Tables— Fitch's "The Steel Workers.")
fewer men needed in many departments which
reduced modem cost T. H., vol. 2, p. 1832.
Gary plant will have only 4 men at rolls or 12
men on three turns to make 40,000 tons rails. . T. H., vol. 2, p. 1843.
notwithstanding higher labor cost here, the cost
of making steel is as cheap as that abroad on
account of large plants and economic condi-
tions 18~IS03.
DEPEECIATION—
calculated upon original cost, and not on replacement
cost; but sums written off upon property account
"do not represent true depreciation based on orig-
inal cost or purchase value of the physical property
to subsidiary concerns, but are instead an offset of a
part of the inflated valuations at which the stocks of
the subsidiary companies are carried on the books of
the Steel Corporation" Kept. Com. Corp., p. 43.
40 cents a ton, on blast furnace calculated on orignal
cost (Gary) T.H.,vol.2,pp. 1680,1681,
1683.
DUIUTH NEWS-TRIBTINE—
June 11, 1911, stated that the big Mallet engines can
haul a train of 125 loaded ore cars without any
trouble, and 200 empty cars. Statement that aver-
age runs are about 1,600 cars a day loaded and about
the same number shipped *'""' tct.-uu; — „- -iz^u,.
Lake, and about 56 cars a day fi
DMN, and about 3 a day on "the
and 14 trains a dav on the Colei
UNITED STATES STEEL COBPOEATION. 4527
ENGLAND—
has large and small corporations. (See Exports and
imports) 22—1551.
EXPOBT—
statement of exports and imports from 1893 to 1907. . T. Hg., vol. 2, p. 1400.
Commissioner of Corporations investigated export
sales, but has not yet published his information. . . 9 — 198-9.
USSO. combination made possible export trade 18 — 1297.
Gary discusses export business 3 — 93-A.
not much export business until after the USSO S — 96.
was one of the principal reasons for forming USSC. . 3 — 96.
Gary admits USSC. might have sold more rails abroad
than at home in March, 1911 3 — 100.
Gary promises list of sales 3 — 101.
figures showing business of USSC. during its existence
stated to have been given, by Lindabury 22 — 1565.
average invoice and mill prices and shipments of
subcompanies 24 — 1770.
rails price — necessary to shade $20, mill a trifle to
compete CSCO . Dir.,
July 20, 1903.
USSC. exported 3,000,000 tons last year— 1910 18—12, 1897.
Am. St. & W. Co. exported wire products before
organization of USSC, to amount of over $9,000,-
000 between Jan., 1899, and Dec. 31, 1899, or 50
per cent of all exports from United States from
1890 to 1899 ASWCO. Dir.,
Feb. 20, 1900.
table of percentage of production of USSC put in
evidence excluded export trade 9 — 523.
subcompanies could not do one-half or one-fourth of
export, if separate 3 — 104.
data of, to be obtained by president from subcom-
panies USSC. Ex. Com.,
Apr. 10, 1901.
report of president USSC. as to foreign sales USSC. Fin. Com.,
Feb. 7, 1905.
dominating factor in organization of USSC 5 — 104.
south for, in organization of USSC 5 — 206, 221.
10 per cent of USSC. business 5—224.
United States Steel Products Co. sells export 5,000
tons a day or 1,500,000 tons a year 5 — 225.
no international agreement, but international meets
desired 5 — 226-227.
no prices fixed H — 686.
sometimes return is equal to domestic trade, some-
times higher because of transportation 6 — 363.
export prices sometimes lower because fixed by com-
petition with other makers in other parts of world. . 6 — 363-364.
USSC. is only concern that can engage in export
trade, or, as Perkins expresses it, I think the
only bridge that will span the ocean is the cor-
poration" 22—1572.
although the other concerns in the steel business are
concerns of large capital, they only export about
5 per cent or 6 per cent of the business 22—1572.
USSC. exports 95 per cent of all the steel that is
■ ^ -■ -^^ 22—1572.
4528 LTNITED STATES STEEL COKPOKATION.
EXPORT— Continued .
Perkins did not affirmatively answer when asked if
the large export business" of the USSC. was ob-
tained by selling at lower prices, but said: "That *
question is not a fundamental question of develop-
ing the foreign trade; it is a matter of organization
and study and specializing for foreign business " . . ;?2 — 1572.
trade increased by combinations as shown by USSC.
export figures (Perkins) ^^ — 1571.
division of tonnage with export wire nail makers ASWCO. Dir.,
May 9, 1900.
manufacture in foreign countries submitted to Eden-
born and Pabner ASWCO. Min. Ex. Com.,
Mar. 11, 1901.
export selling concern was originated by USSC, with
Farrell at the head 18—1314.
is not for disposing of surplus product, but to supply
at all times as large a market as our facilities will
permit USSC. Ex. Co.,
May 28, 1901.
Export Co. to be formed, called United States
Steel Products Export Co., to be paid commissions,
and to be sold goods at cost, etc Gen. Man. Sal. Min.,
Sept. 2, 1903.
Export Co. to handle trade in extreme northwest Gen. Man. Sal. Min.,
Sept. 16, 1903.
"all material shipped direct from the mill to a point
outside the country shall be turned over to the
United States Steel Products Export Co.^ no matter
where the sale originates, and all inquiries shall be
taken up with Mr. Farrell" Gen. Man. Sal. Min.,
Feb. 21, 1906.
all sales to go outside the country shall be handled by
the Export Co Gen. Man. Sal. Min.,
Feb. 21, 1906.
foreign bureaus under control of export organization. Gen. Man. Sal. Min,,
Aug., 1903.
"it was also decided that from now on all inquiries for
export shall be turned over to the export bureau" Gen. Man. Sal. Min.,
Aug., 1903.
no reexport prices to be luade except upon submission
to Mr. Farrell of the Export Co Gen. Man. Sal. Min.,
June 19, 1907.
bureau recommended in letter of Farrell to Corey,
"by consolidating the handling of all contracts in
one department " USSC. Fin. Com.,
July 28, 1903.
selling agency " is to be a general selling agency of all
the constituent companies of the corporation, in
charge of Mr. Farrell, at present the export sales
agent of the Steel & Wire Co. They will handle
Canadian, Mexican, and all other foreign business.
It is proposed tc. set aside some material for export
• from now on, without regard to the condition of the
domestic trade, si that we can keep a hold on the
business ■ CSCO, Dir.,
Aug. 17, 1903.
Export Co. will attend r., ,-hipments of the material. . CSCO. Dir.,
Aug. 17, 1903.
foreign agents will K-p(.it to Farrell of Export Co <JSCO. Dir.,
. , „. , Aug. 17, 1903.
contracts with Mitsui and other representatives (for-
eign) will be canceled at once (upon inauguration
of export selling agency i
UNITED STATES STEEL COKPOBATION. 4529
EXPORT— Continued.
export agent of National Tube Co. to return from
South Africa "and their export business diverted
into the proper channel" Gen. Man. Sal. Min ,
Aug. 19, 1903.
Export Co "it is expected will be in a position to take
over all export business by Nov. 1" Gen. Man. Sal Min ,
Oct. 7, 1903.
prices to domestic manufacturers on goods to be fabri-
cated and exported to be watched to see if goods are
actually exported Gen. Man. Sal.,
Dec. 2, 1903.
record of all goods sold to domestic buyers for export. . Gen. Man. Sal. Min. ,
Jan. 20, 1904.
"Mr. Hatfield, of the American Bridge Co., of New
York, mentioned that frequently contracts for Pa-
cific coast work are placed with them in New York,
and it was the opinion that this practice should be
continued. Mr. Thomas stated that all of the
offices of the subsidiary companies are to be em-
powered to take up any export business arising in
their territory" Gen. Man. Sal.,
Sept. 20, 1911.
(Note. — Does this change the arrangement
that all export business is to be handled through
Export Co. or transmitted to them, or is it only
applicable to receipt of business or orders, or to
Pacific coast business?)
company to get benefit of any sales negotiated direct
by subcompany for business going out of the coun-
try Gen. Sal. Man. Min,,
Dec. 16, 1904.
all inquiries for goods to export direct must go to the
Export Co., but inquiries for goods to be reworked
and then exported should go to the finishing com-
pany interested Gen. Sal. Man. Min.,
July 6, 1904.
"the corporation will eventually be confronted with
the alternative of restricting the production below
the normal capacity of its finishing plants or of
finding an outlet abroad for a much larger ton-
nage than is at present exported;" and export-
ing of finished articles considered more profitable;
and "it is impossible to condem too strongly the
selling of raw or semifinished material to markets
in which sales of finished products are possible or of
supplying our European competitors with cheap
material with which to compete with the various
companies' finished products " Gen. Sal. Man.,
Mar. 18, 1903.
"all material should be billed to the export bureau
by the manufacturing companies at the net mill
cost; and, in order that the accounts of the export
bureau may accurately indicate the profit or loss
resulting from its operations, it should be cred-
ited with the profits of the ore, coal, coke, and trans-
portation of subsidiary companies on the raw mate-
rial consumed in manufacturing the material
exported" Gen. Man. Sal. Min.,
Mar. 18, 1903.
"conclusion reached to tax the different companies a
commission of 3 per cent for expenses of export
company; and any surplus over and above the
actual renuirfiTTfiPTitfi tn ha roVmtorl tr, tViQ different
. - ~ : tonnage
^^^^^^^^^^=^^=^-^— ==^— Gen. Man. Sal.,
Oct. 7, 1903.
4530 C.MTKD :-:TAJK.S .STKK,I> COIil'OKATJO.V.
EXPOBT— ^>jrj tirj ued.
"exp'^rt company's: chart"; to <:'iu:-Xitnt;ui rornpanies
forhandlirj;^ their export ?iii.-jn<s« will be 2 p';r fent
m-.U^nd of :i per cent, it having' been fcmnd that thi«
will be suflScient under pre^;nt conditioiw, althoij;;h
later it may be ne',e«arj' fj go back t// the old
bafir." Oen Man. Hal. Min.
.'lir 2.'i, i;m.
'.ontra/-.t for f.SCO. pro-.ddes that pri/.e-" t'^ be paid by
exf^ort for r^vxir to be r<r-'i\'\ by it in foreign mar-
kets "hall be such price as Export Co. obtain^^, le*
a percentajre not Uj exceed o per cent <■ .S'O. iJir.,
.Apr. 4, 1904.
"price to be charr?ed for mv,- material f^ the Cinlrbing
company -hould V^e -.o a/I justed a« to enable 'uch
compiany to increa^'; it« f^fxport. bii"irjesr: on finished
material to a maximum" Oen. Man. Sal. .Min.,,
.May 22, ^KJl .
"no riv; ma'eniil is to be eiporty;d",. Gen. Man. Sal,,
.Au;/. 14, ];//;.
f/rice- for billete, -be';t bar-, and other rav,- n .j'erial
wa« to be ma/le to subcomparii<a! -o that s' j' h com-
pany cotild increase it>; cx;/',rt bu-iwr-* to maxi-
m urn on finished t"''''!*. O^n . ilan . Sal. .'/fin
May 22, 1901.
'a special price on raw material to the finishing
properties on a/;count of eipor' bu-ine-- to be
covered by a concession rnadf; trie fjni-hing com-
pany on a tonnaire of mv,- matftrial e'juivalent to
the tonriage of fini-hed j('y/'la exported ':racb month
pliw the a/'.tual 1c«b in pric-- of mamjfa/.tijre v.ben
the price abroad wa* such that the fini-hini' com-
pany was forced to sell it,- output at les>< than the
fini-hint' company wa/s forced to (sell it>, output at
lefs than a fair margin of profit" <".
"imifijiished ;."/''uct» not to be -old abroad v,bere
finkhed ^'/'yi - can be sold
object i- to M:ll fi nisfied i". /d»
cost of sheeti- and tinplat<; would h^r'Uy permit ex-
T/or but there i- profit to cori,oration'in the sheet
narr usi^d, a;! well a.» the pig iron and the ore and
concesrion vril! be a>k':<] from c/rponition t/; permit
exp' .-' of -heef^ arid tinplate Oen. .Ma.o. Sal . Min,,
July, 1903.
.\llentov.-n plant of U.SSC. devoted f/i expor. tra'le . . IH-VIV''..
r<r»xcL freights in le-er of Farrell of fJ.SHTf^rO LSHC, J-in. Com,,
Xov. Lv. 19U;.
-•'«»r.cc-r Bantn bo^ight for 2o (X/i poijnds sv^rling f.'.-SC, Fin. O/.m..
Oen
.'■tan Hal
Min
.May
22, \'M)-i.
Oen
.'•fio Hal.
Min
.Mar
1W3.
Oen
>lan, Sal,
Min
Jan.
, j;/ji3.
,Sept
J', iWi.
-Vov, \r,, 1910.
.May K, I'^M.
impo.'-t. drav.oack." to be collc-tAd by i'.'o.n.ey v,'
U.ci'ed States Product,s J-^xj.f'j.'-f Co. ! . . '.'S'-fK'.O. Dir.,
dni-p:r,iCr: o,'i iiny.^iA .'a'' material* obtained abr* on
steel t^ovg.'jt frorrj fiiet.c^e'oe.','. Co., where fore.-'.-, './re
'=J^'te.''y3 . .' ' . . .' Oen. Man. Sal, Min
, , , . ^ July, l^i2.
drawoack ojj i.ccj/o.'-.ed .'a-n- ::.^-':r^, lUKsd on export)^
r^^^ Oen Man, Sal, Min
Jiilv 1«I2
II conce«!on to Int. Har-.-. Co. f'
VJi.'1-A to be graj.ted to a.'l custorjj
in Bi.-.' " :' "g sta'e.c-.er.tin deferi9c=
UNITED STATES STEEL. COEPOKATION. 4531
EXPOET— Continued.
possibilities of TCI. were considered and Government
extension of slack-water navigation in district was
obtained 17—1237.
TCI. was only 150 miles from Mobile for navigation,
whereas Pittsburgh is 360 miles 17 — 1237.
TCI. could put rails at tidewater c. i. f. as cheaply as
they could at Pittsburgh IS — 851.
Republic Co. does not export (Topping) 17 — 1271.
raw steel to be imported to secure rebate on export. . Gen. Man. Sal. Min.,
Feb., 1902.
prices are different from the domestic prices 8 — 420.
sales abroad at lower than domestic prices advocated
by Schwab iS— 1316-17.
advantage of lower export prices than prices for do-
mestic consumption is not to consumer but to manu-
facturer i9— 1315.
CSCO. must sell abroad 200,000 to 250,000 tons of rails
with Tennessee and Lackawanna in the market CSCO. Dir.,
July 20, 1903.
desirable because of additional work done in the coun-
try by mills iS— 1304-05.
prices of foreign makers of rails for home consumption
is higher than the price for export. Prices given.. T. H., vol. 2, p. 1743.
some have shipped at less than profit. . . : T. H., vol. 2, p. 1730.
order from same buyer for both export and domestic
purchases would be charged $28 for domestic and $21
or $24 for export i5— 1317.
average export price at mill 7^ per cent less than aver-
age domestic price at mill in 1907 T. H., vol. 2, p. 1730.
but in 1907 everything was higher in United States. T. H., vol. 2, pp. 1731-2.
USSC. 1907 report says mill price average for export
was 7J per cent less than for domestic mill price.
As exports are much more highly finished products
than domestic products sold, the difference should
be about 15 per cent or 30 percent T. H., vol. 2, p. 1613.
the principal lines of steel .products, as plates, girders,
and similar things, and steel rails, are sold abroad
for less than they are sold here T. H., vol. 2, p. 1671.
rails have been sold for $10 less a ton abroad than ia
United States (Schwab) T. H., vol. 2, p. 1662.
at $12 a ton for rails, Schwab wrote in 1899, CSCO.
price, " leaving a nice margin on foreign business " T. H. , vol. 2, p. 1628.
rails in 1905 exported for $18.60 and $21 T. H., vol. 2, pp. 1650-
1651.
rails could be sold at $16 in 1899, at the mill, according
to Schwab, who was at that time president of
Carnegie Co iS— 1314.
Schwab says it would be good business to sell rails in
China at $7.50 less a ton than domestic prices IS — 1316.
export sales at less prices than domestic price is wise
practice ■'^ — 1315.
in export business, they got whatever they could get
in competition with the Germans, French, and
Austrians, and other high-tariff people iS— 1315.
rails not sold in England, France, Germany, and
Austria by Americans. That is impossible. Rails
are sold only in foreign countries where they com-
pete on trnnnpnrtatjr;" ^Vmrorpg with n*; — India,
; — '- iS— 1316.
4532 UNITED STATES STEEL CORPORATION.
EXPORT— Continued.
steel sold abroad has been sold at higher than domestic
prices since the formation of the Steel Corporation. . 18 — 1316.
United States can compete with Germany in China. . 18 — 1347.
can't sell in Germany on account of tariff 18 — 1344.
products could not be sold in Germany on account of
high cost of transportation 18 — 1344.
prices for Pacific coast and foreign makers ' prices, duty
paid, compared by United States Steel Products Co . Gen . Man . Sal . Min . ,
Jan. 18, 1911.
Panama Railroad, sold rails to, 1910-11, little less than
$28 5—283 .
Union Drawn Steel Co. lost 5,000 to 6,000 tons per
j^ear export through competition of Jones & Laugh-
lin. Recommended not to sell them at low prices
to compete with Jones & Laughlin Gen. Man. Sal. Min.,
Sept. 18, 1907.
contract with Harlan & Wolff canceled for £,1 per ton
on 16,000 tons CSCO. Dir.,
May 21, 1901.
Canada business can be picked up at $1.40 mill CSCO. Dir.,
May 11, 1903.
26,000 tons sold to Dominion Bridge Co., Montreal,
Canada, at cost CSCO. Dir.,
Sept. 5, 1903.
Quebec Bridge contract and emergency dams, in-
volving 10,000 to 12,000 tons CSCO. Dir.,
Apr. 2, 1911.
sales to West Australian Government CSCO. Dir.,
May 27, 1911.
export company sold rails to Lancashire & York-
shire Railroad Co CSCO. Dir.,
July 11, 1904.
Italian Government bids for armor plate for CSCO. Dir.,
July 3, 1911.
FINANCIAL AMERICA—
Article May 11, 1911, on Gary dinners, etc 24 — 1611.
FINANCIAL CHRONICLE—
Quotations Nov. 2, 1907 ZS—1Q2Z.
Nov. 2, 1907, showing quotations $s — 1615, 1621.
FOUNDRY IRON—
Republic offering to Birmingham district for $12.85,
which is equivalent to $16.50 Pittsburgh CSCO. Dir.,
Jan. 6, 1908.
Dinkey said: "I understand they had a fixed price
down there at $13," the difference may be in a
wrong rate of freight, making 15 cents difference . . CSCO. Dir.,
Jan. 8, 1908.
GARY PLANT—
Chicago lake shore land tract purchased for $450 per
acre USSC. Fin. Com.,
^ • , ,, .-, , , , Sept. 5, 1905.
authorized provided that the cooperation of the
public oiBcials in Indiana and representatives in
Congress be secured as promised " USSC. Fin. Com.
Dec. 29, 1905.
Jan. 9, 15, 1906.
Ts-Ti 2^ 1 QOfi
$6,210,000 for by-product coke plant USSC. Fin. Com.
cost estimated by Thorp $3,76£
$3,500,000 ^
UNITED STATES STEEL COEPOEATION. 4533
GABY PLANT— Continued.
gas franchise in Tetleston and the incorporation
recently into Gary, Ind., waa explained in letter
E resented by President Buffington, of the Gary
and Co., under date Jan. 19, 1910 USSC. Fin. Com,,
Jan. 25. 1910.
f3,000 per acre for 20 acres received for land sold to
Pittsburgh Screw & Bolt Co USSC. Fin. Com.,
Jan. 25, 1910.
AMBCONJ. $2,700,000 appropriated for AMBCONJ. Dir.,
Mar. 15, 1910.
GEOLOGICAL SURVEY—
pig iron cost in 1894-1896, was prepared by Phillips,
of the Tennessee CIRR. Co. for i5— 984-985.
report of G. Willard Hays of available ore of the
country. Perin says the report does not take into
consideration the question of availability in dif-
erent parts of the country, in view of the closing
down of furnaces in various places 16 — 1030.
report of percentage of metallic contents of ore in
Superior district, average 58 per cent; Clinton ore of
Alabama, 37 per cent; Cuba, 46 to 54.69 per cent;
Belle Isle, Newfoundland, 52 to 64 per cent; Spain,
brown ore 48 to 50 per cent, red ore 54 to 56 and
Spathic ore before roasting 40 to 45 and after roast-
ing 55 to 60 percent T. H., vol. 2, 1343-1344.
(See Ore.)
GEEMANY—
German Cartels —
Cartels are cooperating agreements in Germany. . 5 — 285-288.
has large corporations in close cooperation 2f — 1551.
GOVERNMENT. (Including Federal and State. See
also New Jersey and Pennsylvania and Sherman
law, etc., price control.)
Government control feasible. Temple says S4 — 1746-1747.
Government regulation of prices at which Inter-
national Harvester Co. are to sell within borders of
Kansas has been made "but it is an arrangement
which so far as I know has never been successful
before" CSCO. Dir.,
Feb. 9, 1907.
Government should fix prices if manufacturers are
not fair to competitors (Perkins) ;?:? — 1534.
under a Federal incorporation and license law, regu-
lation of prices should not be upon capitalization
but upon real values of property 5 — 253.
Federal incorporation and license law 4 — 250.
approved by Gary, and regulation of prices 4 — 251-253.
Government control of prices would result in such
higher prices that the consumers claiming they
were excessive; or (2) so low that the USSC, with
its low costs, could not undersell all independents. . ^4 — 1744.
Publicity op Corporate Acts —
Government publicity of all operations, balance
sheets, prices, methods, treatment of labor, of
competitors, and the public, should be ob-
tained by Government bureau, and is ad-
vocated by Perkins ;25— 1609.
Government publicity would encourage in-
vestors 22—1573.
al license
25—1610.
4534 UNITED STATES STEEL CORPORATION.
GOVEENMENT— Continued.
Publicity or Cokpoeate Acts — Continued.
Federal control of interstate commerce could be ex-
ercised by Federal incorporation or license and
control of capitalization and restraint of trade. . 9^536-7.
Government ownership of natural resources sug-
gested by Smith 9—534.
plans as to ore land enumerated by Mr. Gardner:
(1) dissolution of ore-holding corporations that
had monopolies^ (2) Government regulation;
(3) constitutional amendment to enable Gov-
ernment to buy back ore lands and lease them. 2^ — 1547-8.
Financial and Miscellaneous —
$50,000,000, deposited by United States Treas-
ury, was divided among banks all over country,
but New York got majority share, about Oct.
25, 1907 IS—WQ.
United States Government Treasury had de-
posited $25,000,000, to relieve situation i9— 1389.
$25,000,000 deposited by United States Govern-
ment Oct. 24 f 0—1473.
United States Government furnished sums of
money to banks all over the country 19 — 1377.
Cortelyou allowed discrimination in favor of
grain and cotton to be moved on railroads in
preference to other shipments W — 1481.
Government investigators distrusted, but busi-
ness goes ahead and is good CSCO. Bir.,
Jan. 14, 1907.
Government bids made subject to penalty CSCO. Dir.,
Aug. 31, 1903.
Government currency plan discussed 22 — 1546.
GEOTON PLANT—
shut down as soon as manufactures now in progress
permits AMBCONJ. Dir.,
Jan. 20, 1902.
IMPOKTS—
freight from Germany to Atlantic seaboard, $1.60 on
rails, and $2.50 from Pittsburgh. 90 cents in favor
of foreigner T. H., vol. 2, pp. 1696-
1697.
$1.60 freightr-England to United States. $1.60
freight— Germany to United States T. H. , vol. 2, p. 1696.
if Germans sold here, Americans would have to meet
their prices 18—lZih.
billets have occasionally to be imported to fill orders
or to affect the price in some locality USSC. Ex. Com. .
Feb. 25, 1902.
plan to keep m touch with USSC. Fin. Com.,
f^anr. ■„ V. , •„ ^Pr- 11. 1905-
(.^bOU. wiU have to surrender Pacific coast entirely to
foreign material under new tariff, and along the
Atlantic coast; take New Orleans, for example, or
an^ other point where material can be imported
easily, and they wUl be compelled to meet the
price if they want the business CSCO. Dir.,
-^ „^ , Sept. 6, 1909.
35,000 tons scrap en route from Liverpool to Phila-
delphia, freight being $1.22 per ton CSC. Dir.,
, . . , . Oct. 25, 1909.
foreign prices duty paid at Pari fir- nncaf r.r^m^oro^
with United States Steel Produ — ,
German iron and steel can be m; :
than anyT^here else
UNITED STATES STEEL COEPORATION. 4535
INTEBSTATE COMMEBCE COMMISSION—
publish the rates for Two Harbors and Duluth, etc. . 8 — 442.
rates Pacific coast to New York and Florida to New
York compared. Case decided against TJSSO. roads
January, 1912 S4 — 1746-7.
INTEBNATIONAL MEETING-
US Europeans and 7 Americans present ^2 — 1531.
Gary made president 22 — 1531.
subcommittee appointed "with idea to cooperate in
steel business of the world," was appointed at sug-
gestion of Gary 22 — 1531.
lEON. (-See "Pigiron" and also "Cost," "Steel," etc.)—
ferrosilicon iron, 200 tons, at $25 per ton bought ASWCO. Dir.,
Apr. 21, 1902.
mON AGE—
regarded as representative paper and authoritative. . 17 — 1272.
suggested to get them to publish jobbers' instead of
manufacturers' wholesale prices Gen . Man . Sal . Min . ,
Nov. 17, 1909.
mON TBADE EEVIEW—
regarded as representative and authoritative 17 — 1272.
auggected to get them to publish jobbers' instead of
manufacturers' wholesale prices Gen. Man. Sal. Min.,
Nov. 17, 1909.
lEONMONGEE—
is one trade journal in Great Britain. Quotes Ger-
man newspaper to effect that Brussels conference is
to fix prices, etc 17—1272.
JOBBEBS—
to be eliminated and warehouse system suggested CSCO. Dir.,
Dec. 28, 1908.
elimination of, was first effect of corporation cutting
loose from policy of cooperation. Corporation had
been making concession to jobbers CSCO. Dir.,
Feb. 22, 1909.
contract of USSC. and relations with. {See last page). Gen. Man. Sal. Min.,
June 17, 1909, to Aug. 16,
1911.
jobbers' contract drawn by USSC. provides that the
jobbers will carry no stock "but that manufactured
by the corporation in its particular liues" and will
give up direct shipments. (5ee last page.) Gen. Man. Sal., Min.,
June 17, 1909.
Gary said one object of dinners was to uphold prices
for jobbers 3 — 76.
UMESTONE—
49 cents is average cost, no profit T. H., vol. 2, p. 1692.
was shipped over other roads 19 — 1407.
Pittsburgh Coal Co., contract quoted at 19 — 1408.
LABOE—
is the only thing that really enters into the cost of steel
and transportation 18 — 1300.
combination has benefited labor because the only
thine that really enters into the cost of steel is labor,
.?5— 1300.
is ufactured
iS— 1352.
4536 UNITED STATES STEEL CORPORATION.
LABOR— Continued.
subject was examined by Bureau of Labor and Senate
committee S — 101.
increase of wages, etc., since USSC. organized 5 — 289.
USSC. reduced wages once under Corey as president
in early years of organization, but not since, says
Perkins «2— 1568.
USSC. did not reduce labor wages in 1907 panic 5 — 76.
paid higher wages than others 5 — 237.
USSC. did not reduce wages in 1907
convict labor at Tennessee CI&RR. recommendation
to be obtained from Mr. Crawford (not stated) USSC. Fin. Com.,
May 4, 1908.
aubcompanies may pay in 80 cent checlcs and 20 per
cent cash, if necessary, USSC. had $75,000,000 cash
on hand USSC. Fin. Com.
Nov. 1, 1907.
more foreign labor now 1 — 37.
$1,000,000 spent to prevent accidents
voluntary relief plan USSC. and pension plan .5 — 292-297.
Gary Land Co., proposed expenditure, 1935,000 for
294 dwellings and 161 buildings for employees and
$578,927 for 200 buildings USSC. Fin. Com.,
Sept. 29, 1910.
tenement houses and price built by HCFCCO HCFCCO. Dir.,
Sept. 27, 1899.
USSC. pays $150,000,000 per year (Dec. 21, 1901,
Schwab) ; i5— 1283.
all American in more finished lines is — 1303.
number in USSC, 140,000 or 150,000 i<9— 1303.
Bethlehem has 18,000 or 20,000 JS— 1303.
UO per cent of American in Bethlehem Co 18 — 1304.
only 28 per cent capacity of the USSC. in operation;
210,180 total employees, 70 per cent of which, or
147,126, were out of work; S mouths passed beforo
they had 50 per cent in operation, which would
leave idle 8 months after the panic commenced
105,000. Their latest reports (1907-8) showed only
60 per cent of their capacity employed; on this
basis they have idle til, 000 T. H., vol
1382.
"in the case of this rail mill at Gary, the labor cost
there will not be half what it is in England, not-
withstanding the cheaper cost of labor per man "... T. H., vol. 2, p. 1843.
will make 40,000 tons of rails a month; and even
with 3 turns, 8 hours apiece, there would be only
12 men employed (Carnegie) T. H., vol. 2, p. 1843.
3 or 4 men on a shift to-day will make 400 tons iron.
10 years ago 20 men did the same amount of work.
In addition, the furnaces to-day are 200 to 400 per
cent greater in output than 10 years ago 15 934
cost in OH. steel for OH. process is 85 cents; blooming
mill, 50 cents; cost of rails proper, $1 to $1.25 T. H. 2 1635.
greater amount of labor to make a ton of iron than a
ton of steel T. H., vol. 2, p. 1963.
of USSC. averages $1,000 per man per year is 1305.
percentage of foreign labor at Gary is very large 75—1335.
percentage of skilled labor is higher than 20 per cent
at Gary ;S— 1336.
scarce in last years in south ^ji_
convict labor used by TCI
UNITED STATES STEEL COBPOBATION. 4537
LABOR— Continued.
convict labor employment at TCI., referred to in
letter of DickBon USSC. Fin. Com.,
May 4, 1909.
Perkins believes living conditions are better than
before organization of USSC ^% — 1569.
have become stockholders, thousands of them, says
Perkins 22—1569.
30,000 employees hold stock, or 35,000 22—1569.
USSC. report of 1910 refers to stock subscriptions by
employees for one year ^^ — 1570.
stock ownership in the concern tends to prevent
strikes, because it gives employees a partnership
interest in the concern 2t — 1574.
Perkins says wages are higher to-day in the so-called
average trust than they would have been under old
ruthlessly competitive methods ^2 — 1567.
wages have advanced on the average in last 10 years.. t$ — 1567-8,
wages had been reduced by competitors, and differ-
ence of opinion existed between Gary and Perkins
and Corey as to whether they should be reduced,
and Morgan was consulted by cable and he advised
against reducing them, and they were not reduced. 22 — 1568.
J. P. Morgan cabled in regard to wage question USSC. Fin. Com.,
Apr. 27, 1909.
Perkins says there is no reason why labor men should
not cooperate 22 — 1557.
Perkins says USSC. was not opposed to union labor,
but was opposed to exclusively using union labor,
and that quotation from minutes that corporation
was opposed to extension of union labor does not
indicate hostile attitude to union labor 22 — 1557-9.
"that we are unalterably opposed to new expansion
of union labor, and advise subsidiary companies to
take a firm position when these questions come up
and say that they are not going to recognize it. . . . USSC. Ex. Com.,
.Tune 17, 1901.
Corey did not want any company to sign the amal-
gamated scale CSCO. Dir.,
June 4, 1901.
colonization for mines and Duluth and Iron Range
Raikoad USSC. Fin. Com.,
Aug. 16, 1910;
Nov. 1, 1910.
$40,000 donated to Pittsburgh Armory fund USSC. Ex. Com.,
June 25, 1910.
$25,000 or less appropriation for, referred to president
and chairman with power ($10,000 donated) USSC. Fin. Com.,
Mar. 1, 1910;
Mar. 8, 1910.
Union Steel Co. resolution, on motion of Gary and
seconded by Filbert, to vacate certain streets in
West Columbia Union St. Co. Dir.,
Jan. 3, 1905.
labor questions discussed in USSC. executive com-
mittee minutes; but at the request of Mr. Boiling,
counsel for USSC, they were not extracted, by the
assistant USSC. Ex. Com.,
Apr. 20, 1901 (and subse-
quent meetings).
employees of USSC. are 168,000, of which 122,000
receive less than $800 per annum; 44,000 receive
from $800 to $2,500; 1,300 receive $2,500 to $5,000;
-«^"^»^^^^^^; 15 receive
USSC. Fin. Com.,
Dec. 2, 1902.
4538 UNITED STATES STEEL COKPOBATION.
LABOB — Continued.
has not advanced much in steel iudustry in 20 years. . T. H., vol. 2, p. 1866.
does not get benefit of artificial higher prices T. H., vol. 2, p. 1866-7.
labor wages and labor cost percentage of decrease
and instances of increase Fitch's "The Steel Work-
ers," pp. 150-165; 166-
181.
{See aZso Byington's "Homestead," pp. 35-81 et seq.
138-144.)
labor and operation average coat T. H., vol. 2, p. 1692.
average earnings per day (outside of Birmingham
district) iu 1907:
$2.43 in manufacturing companies.
12.39 LQ coal and coke companies.
$2.46 in ore-mining companies.
$2.44 in transportation companies.
$1.92 in "other sundry companies. "
$2.42 total average in 1907 as against $2.26 in
1902 (figures offered by Gary) T. H., vol. 2, p. 1695.
common laborers (40 per cent of all employees of Beth-
lehem Co.) receive $1.50 a day i5— 1308.
1890 received $4 or $5 a day, or 87 to 95 cents per ton.
1911 receives 39 to 41 cents per ton. But formerly
they only turned out 3 to 4 tons in 12 hours; and now
they turn out 12 or 13 tons. Heaters now average
about $5 a day, having increased from $4 a day in
1890 12— in.
paid by HCFCCO, Apr. 1, 1895:
mining and loadmg seam and rib coal $0.90 per 100 bushels.
mining and loading heading coal $1.02 per 100 bushels.
mining and loading wet heading coal $1.10 per 100 bushels.
2,688 cubic inches to bushel HCFCCO. Dir.
Mar. 14, 1895
other wages stated 19 classes roughly averaging $1.25
per day and 1 at $2.10
May 15, 1899, date of Schwab's letter, the price of
labor was 90 cents a day or $1 a day 18 — 1322.
prices paid by HCFCCO. Feb. 28, 1900 HCFCCO. Dir.
Feb. 28, 1900.
wages average $4 (Dec. 21, 1901, Schwab) for all
laborers i5— 1383.
prices paid by HCFCCO HCFCCO. Dir.,
Feb. 18, 1907.
prices paid by HCFCCO HCFCCO. Dir.,
Jan. 27, 1910.
voluntary accident-relief plan, HCFCCO HCFCCO. Dir.,
May 16, 1910.
free labor makes from $2 to $6 or $7 a day in Birming-
ham district 75—1022.
ordinary labor paid $1.35 to $2 n 654.
skilled labor included in steel production are melters
who get $7 a day; rollers who average $10 and $15
a day; machinist, $2.75 to $5.50 a day depending
upon his skill; bricklayers $4 to $5 a day iS— 1306.
80 per cent of blast-furnace laborers are foreign labor,
"the cheapest, lowest-priced, almost, that we have
in the industry, and the easiest labor " 18 — 1307.
large percentage of people in steel industry are
obliged to work 12 hours a day for 7 days a week. . 75—1307.
Schwab says they were willing to abolish the condi-
tion of 12 hours labor and 7 days a week, including
Sundays, if they could get a prac
UNITED STATES STEEL CORPOBATION. 4539
LAB OB — Continued .
"In increasing the output of these works, I soon dis-
covered it was entirely out of the question to expect
human flesh and blood to labor incessantly for 12
hours, and therefore it was decided to put on three
turns, reducing the hours of labor to 8 hours. This
proved to be of immense advantage to both the
company and the workmen, the latter now earning
more in 8 hours than they formerly did in 12 hours,
while the men can work harder constantly for 8
hours, having 16 hours for rest." (Extract from
paper read by Capt. Wm. R. Jones, before British
Iron & Steel Institute, May, 1881. See Bridge's
Inside History of Carnegie Steel Co., pp. 107, 110,
188, 189.)
"Third. The company should endeaver to make the
cost of living as low as possible. This is one bad
feature at present, but it can be easily remedied.
* * * These suggestions are the result of 25 years'
experience obtained in the most successful iron
works in this country: Cambria & Thomas Iron
Works, Port Richmond Iron Works, and the Cam-
bria Works." (Letter from Capt. Wm. R. Jones
to E. V. McCandless. See Bridge's Inside History
of Carnegie Steel Co., p. 82.)
in average steel concern, probably one-third of labor-
ers work 7 days a week and 12 hours a day 18 — 1307, 1308.
Bethlehem Steel Co. has 18,000 to 20,000 men on
salary or employees 18 — 1306.
40 per cent are common laborers 18 — 1306.
common laborers receive $1.50 a day 18 — 1306.
work 12 hoiu-s a day at blast furnace 18 — 1306.
large number work 12 hours a day and 7 days a week,
but Schwab does not thiuk it is 33 J per cent 18 — 1307.
increase 75 to 100 in 12 to 15 years 1 — 35.
labor in 1896-97 was 40 per cent of present price. . . . 1 — 35.
cost has increased since 1895, 1896, and 1897 i5— 1013.
paying 70 per cent more for labor now than 20 years
ago 1—37.
sailor gang (roustabout) 9 cents hour, 1896-97 1 — 35.
sailor gang (roustabout) 18-20 cents hour, now 1 — 35.
increased price due to tariff should be distributed to
labor, but is not now done, although Carnegie
Steel Co. had system of paying labor according to
prices obtained 18 — 1350.
wages have increased, but only small percentage of
organized labor 18 — 1350.
wages have increased 10 per cent while production
has increased 58 per cent in 7, 8, or 10 years 18 — 1359-1360.
does not get benefit of increased productiveness 18 — 1354.
has increased wage per day in last 10 years, says
Schwab iS— 1355-1356.
1902-1909 comparative earnings in Pennsylvania and
production i5— 1355-1356.
increased labor cost not compensated for by increased
transportation facilities 1 — 36-1357.
has entered largely into increased cost of rails 1 — 37.
labor not much more efficient now 1 — 37.
higher here than in foreign countries 18 — 1303.
co^^^^H^^^H^^^S^^BH^^^B^a^ by steel
18—1352.
4540 UI>riTED STATES STEEL COKPORATION.
LAB OE— Continued .
United States pays double what England pays, three
times what Holland and Belgium pays, and two
and one-quarter times what Germany pays 18 — 1303.
in Germany gets 75 cents or $1 a day, while he gets
double in United States 18 — 1336. •
higher here, but no better than in Germany 18 — 1347.
if foreign labor had not been brought here, it would
not have been possible to do steel business. . , 18 — 1348.
cost in United States is the same as in England T. H., vol. 2, p. 1666.
cost is greater in United States than Germany 18 — 1348.
in labor cost, the wages per man would have nothing
to do with it T. H., vol. 2, p. 1817.
labor cost is not rate of wages T. H., vol. 2, p. 1817.
wages have increased, but total cost of labor has de-
creased T. H., vol. 2, p. 1817.
labor cost must not be taken per man, but with refer-
ence to output per man T. H., vol. 2, pp. 1842,
1843.
output per man has largely increased {see Tables) Fitch's "The Steel work-
ers."
fewer men needed in many departments which re-
duces modern cost T. H., vol. 2, p. 1832.
Gary plant will have only 4 men at rolls or 12 men on
3 turns to make 40,000-ton rails T. H., vol. 2, p. 1843.
notwithstanding higher labor cost here, the cost of
making .steel is as cheap as that abroad on account
of large plants and economic conditions 18 — 1303.
Local Managers op Sale —
meetings of, z-xe recommended by general man-
agers of sale Gen. Man. Sal. ilin.,
Feb. 20, 1907.
Manganese —
property bought in Ukwa, Balaghat, India, by
CSCO USCO. Dir.,
Mar. 18, 1907.
Manufacture. (See Steel, Iron, Blast Furnaces,
etc.)—
preferable to make goods of one class for long
period.^ l — 47.
preferable to select goods to be made 1 — 47.
Mining and Mining Companies —
W. J. Olcott, of Duluth, now has charge of all
mining operations for USSC 7 — 377.
73 cents per ton, average mining cost in Lake
Superiiir region (Gary) T. H., vol. 2, p. 1689.
$1.43 is miningcostand depreciation and royalty. T. H., vol. 2, p. 1681.
Nagaunee mine can be mined for 85 cents to 90
cents a ton USSC. E. Com.,
June 21, 1901.
plan to amalgamate mining companies USSC. Fin. Com.,
Aug. 24, 1901.
Moody's Manual —
1905, Pittsburgh Coal Co., USSC. contract in re-
gard to steam coal 4 — 160.
Munsey's M.^oazine —
article June, 1908, showing properties and valua-
tion thereof of USSC. quoted by Gary and said
by him to be "a little high, but not very much
too high " T. H., vol. 2, p. 17.32.
the article is right as to value of TT.'=!sn T^rr.T^QT•t;QQ 1 HO-on
June, 1908, as to value of TO
lands, etc
UNITED STATES STEEL CORPORATION. 4541
NEW JEKSEY—
CoEPORATioN Law Amendment —
"after making of such contract with J. P. Morgan
& Co. and the desired amendment of the general
corporation law of New Jersey, a special meet-
ing of stockholders be held, etc." USSO. Bir.,
Mar. 4, 1902.
legislature passed Mr. Reed's senate bill No. 137,
amending New Jersey act concerning corpora-
tions, and bond-conversion plan adopted USSO. Dir.,
Apr. 1, 1902.
NEW YORK SUN—
article^ Oct. 22, in re Trust Co. of America (morning
edition) £3—1692.
NEW YORK TIMES—
article, Oct. 23, 1907, referring to Trust Co. of America. 25—1663-1664.
was discussed by Oakleigh Thome £3 — 1685.
article of Oct. 23, "commonly attributed to Perkins;"
his responsibility has not been proved £3 — 1685.
NEW YORK WORLD—
article by Gary, that he did not believe in monopoly
or restraint of trade 4 — 177.
June 7, 1911, editorial, giving dates and history of 1907
panic and TCI. deal 5—247-248.
Apr. 20, 1909, Gary denies statement that immediate
cause of TCI. deal was panic conditions 4 — 179.
NICKEL—
contracted for from Orford Copper Co. by American
Bridge Co. of New Jersey AMBCONJ. Dir.,
Mar. 18, 1910.
ore-
Divided AND Classified —
1. General
2. Geographical locations
3. Quantity existing
4. USSC. holdings
5. Independent supply
6. Purchases
7. Royalties
8. Values
9. Prices
10. Profits
11 . Costs
12. Transportation
13. Sales
14. Shipments
15. Percentage of metallic content, etc
16. Self-fluxing
Gbneeal —
Schwab does not know of any ore that can not be
utilized by modem methods .?«— 1290-1291.
silicious low-grade ore is a very small proportion
of the total shipment 7 — 399.
with smaller percentage of iron is being used than
was formerly used 7—398-400.
as low as 45 per cent is used 7 — 399.
running below 45 per cent, that are very silicious
and low in phosphftrus, are used practically as a
„i„ A i- -T-- J- mix ^ith
7—399.
4542 UNITED STATES STEEL COEPOBATION.
OEE — Continued .
GbnbbaI/ — Continued.
agglomeration is not primarly to remove moisture
but to manufacture the ore into a finer product,
which is a necessary step for the economic
manufacture of iron from ore of that kind 7 — 404.
agglomeration is done by submitting the wet ore
of Cuba to a gas flame up to almost a fusion
point, and costs about $1 a ton 7 — 403.
nickel adds to quality of ore 5 — 107.
Mesabi ore contains 10 to 11 per cent moisture . . 7 — 404.
Menominee. .
don't use steam shovel S — 107.
Marquette.
Gogebic . . .
Baraboo.. .
Vermilion .
Lake Superior ore is very much more than half
non-Bessemer 1S-S73.
southern ore is all non-Bessemer 1 — 18.
nickel in Cuba ore will improve steel, is consen-
sus of opinion, by improving the wearing
quality and making less liable to break 18 — -1334.
Cuba ore has nickel 3 — 107.
Cuba ore is wet and costly to use S — 106.
Cuba ore not as good as northern ore 1 — 106.
largest portion of best ores are in Mesabi and
Vermilion Ranges S — 83.
large ore in Menominee, Cogebie, and Marquette 5^84,
Ranges and in Alabama S — 83.
Mesabi Range deposits are horizontal with a cov-
ering of gravel drift, so that it is very easy to
go through that drift, which may be 5 to 100
feet in depth. You can by driving through
that overburden mark out the limits of every
deposit with practical certainty and estimate
the tonnage of iron 7 — 398.
Michigan and Vermilion Range ore formation is
a vein formation difficult to estimate 7 — 398.
Michigan ores are lump ore like rock, and those
called soft ores. Mesabi ores are fine and
contain a large proportion of very finely granu-
lated ore — a great deal more so than the soft
ores of the other ranges 7 — 398.
Appalachian Range deposits of brown hematites
run through to Alabama 7 — 400.
three kinds of southern ore: Red fossil ore in Red
Mountain limnoite, or brown ore, eastward of
Birmingham, on the east slope of the Blue
Ridge, and semimagnetite ores, not used on
account of its high per cent of titanic 15 — 1000,
southern ore being in pockets, and ore not being
purchasable from competitors, a new concern
could not start there profitably IS — 1292.
brown ore scattered 1 — 17.
New York ore at Port Henry is not rich enough
to ship without concentrating treatment, but
will be shipped in the future 7 — 400.
New Jersey ore will be concentrated and used. . . 7 — 400.
Geoghaphical locations —
ores come from Cuba, Canada, Pr-""^ ''"^ ""^ ' '"
Utah has about 150,000,000 tor
been touched
UNITED STATES STEEL CORPORATION. 4543
OEE— Continued .
Geoqhaphicai locations — Continued.
Riverside County, Cal., has large deposits 7 — 400.
Texas has large deposits of brown hematites not
used 7—400.
western ore has not yet developed except in
Wyoming, which supplies the Colorado Fuel
& Iron Co 7 — 401.
Canada has poor iron ores except one paying mine.
The Helen, at Michipicoten Harbor 7—401.
Cuban ores lie flat like the Mesabi ores and come
up to the grass roots 7 — 404.
Spain has large deposits 7 — 405.
Luxemburg, Germany, has large deposits 7 — 405.
Brazil has large deposits 7 — 405.
Sweden, in the Gellivare district, has large de-
posits of magnetite which has to be concen-
trated in a great degree 7 — 405.
Quantity existing —
Geological Survey gives 5,000,000,000 tons of
commercial available ores of the country, and
total ores at about 23,000,000,000 tons 9—547.
Willard Hayes of the Geological Survey estimates
that the mines in Michigan and Minnesota had
in reserve about 3,500,000,000 available gross
tons of merchantable ore, and the USSC. esti-
mate that they have 1,750,000,000 tons, which
is 50 per cent 7 — 398.
ore available to the market had become pretty
well defined by 1907. (Sec "Oreland.") 1S—8G6.
the known deposits have been developed through
exploration since the formation of the USSC. . 7 — 396.
much Michigan ore not now available will be
available in the future 7 — 400.
USSC. Holdings—
Chairman of the USSC. admitted in 1908 before
the Ways and Means Committee that they con-
trolled the ultimate ore supply of the whole
country; but afterwards said that competitors'
ores would be exhausted, and they would have
to mine ore not at present merchantable, while
USSC. will still have ore 9—477.
5—83.
75 per cent estimate is outside of the Hill lease
(Smith), but Smith is in doubt as to this con-
trolled by USSC 9—485.
USSC. has now 75 per cent of the ore 9 — 481.
1,250,000,000 tons of the USSC.'s ore is on the
Mesabi 7—398.
USSC. has 70 per cent of known Old Range ore,
including Bessemer and non-Bessemer USSC. Ex. Com.,
June 21, 1901.
the estimate of 1,750,000,000 of USSC. was made
by officials of the Oliver Iron Mining Co.
during the time when Cole was president 7 — 328 .
very considerable majority of Lake Superior ore
is held by steel interests, and the minor part in
the hands of merchant mine people 13 — 843.
control of Lake ore together with TCI. would not
(Hve -nrartioa} mnnnnnlv rtf Wnr\ nwa ir^ tliia coun-
i5— 866.
4544 UNITED STATES STEEL CORPORATION.
ORE — Continued .
USSC. Holdings — Continued.
USSC. has 50 per cent (Government report) of
ore 5—80.
Gary thought USSC. had more than 50 per cent
of ore 5—80.
hundreds of billions of tons of ore not merchant-
able not owned by USSC 5—80.
Gary believed USSC. had 65 or 70 per cent of
best ore in Northwest S — 83.
Tennessee Coal, Iron & R. R. Co. has about
440,000,000 tons of ore merchantable at this
time, but it is only two-thirds as rich as the
Lake Superior ore which would reduce the
tonnage relatively to, say, 300,000,000 tons. . . 7-^01 .
T. F. Cole, president Oliver Iron Mining Co.,
had supervision of all ore mining operations of
USSC 7—377.
Mr. Gayley is expert on ores 5 — 107.
USSC. does not sell 5—85.
Independent supply —
small independent manufacturer has to buy his
ore from competitors (Schwab) T. H., vol. 2, p. 1673.
independents get ore on Mesaba Range 5 — 85.
the great part of the ore land is leased or owned
by existing companies 18 — 1291.
not sufficient quantity to justify new concern
going into business 18 — 1291 .
all important concerns own a certain portion of
ore they use 1 — 53.
some important concerns own 100 per cent of
their ore 1 — 53.
Republic sells 50 per cent of their ore .?^53.
Lackawanna owns Brotherton and half a dozen
other mines 1 — 53.
price to Illinois Steel Co. from Minnesota Iron
Mining Co. on parity with price to Carnegie Co.
and Oliver Iron Mining Co Ills. St. Co., Dir.;
Apr. 21, 1897.
Gayley says he was told that the Penn. Bethle-
hem and Maryland companies are shipping some
raw ore and agglomerating about 750,000 tons
a year 7 — 405.
Bethlehem Co. does not sell ore 18 — 1292.
Port Henry produces about 1,000,000 tons per
year i— 53.
Cuban ore — Pennsylvania Steel Co. claim
1,000,000,000 tons; Moe Bay Iron Co.,
160,000,000 or 170,000,000; Covies Co. has
about 200,000,000 tons; USSC. probably has
100,000,000 tons; Eastern Steel Co. has a large
tonnage; and Bethlehem Co. has about
17,000,000,000 tons; and company in which
C. P. Perin is interested has 150,000,000 tons. . ./5— 1038— 9.
Tariff is 15 cents with 22 per cent off, making 12
cents 8 — 437.
Purchases —
may be bought from TCI. and other companies in
south, but policy of all large concerns is to buy
ore from others whenever it <
reasonable price, so as to conse
holdings
UNITED STATES STEEL COEPORATIOK. 4545
OBE — Continued .
PuKCHASES — Continued .
1893 to 1899 was period of low prices ^3— 644.
1,024,000 tons bought bjr Ills. St. Co., upon
guaranty of sellers that if they sold at less rate
than quoted Ills. Co. to others, that sellers
would make similar reduction on rate on
unused ore purchased by Ills. Steel Co Ills. St. Co. Dir.,
May 21, 1896.
bought by ASWCO. at cost plus 20 cents per ton
from American Mining Co. before organization
USSC ASWCO. Min. Ex. Com.,
May 17, 1900.
$2.85 LE. ports 75,000 tons Sparta ore 0.025
phosphorous ASWCO. Min. Ex. Com.,
Feb. 6, 1901.
prices and purchased by ASWCO ASWCO. Dir.,
June 10, 1901.
25,000 Mahoning $2.46 LE. from Am. Steel
HoopCo ASWCO. Dir.,
Dec. 9, 1901.
purchases and prices to ASWC ASWC. Dir.,
June 10, 1902.
purchases and prices to ASWC ASWC. Dir.,
Sept. 9, 1902.
purchases and prices ASWC. Dir.,
Sept. 2, 1903.
prices and purchases ASWC ASWC. Dir.,
Dec. 19, 1903.
prices and purchases ASWC ASWC. Dir. ,
Apr. 16, 1906.
prices and purchases ASWC. Dir.,
June 18, 1907.
44,000 tons Atlantic ore at $4.99 ton delivered LE.
ports ASWC. Dir.,
Dec. 17, 1907.
prices and purchases ASWC. Dir.,
Sept. 15, 1908.
prices and purchases ASWC. Dir.,
Dec. 15, 1908.
prices and purchases ASWC. Dir.,
Sept. 21, 1909.
prices and purchases ASWC. Dir.,
Sept. 20, 1910.
prices and purchases ASWC. Dir.,
Dec. 20, 1910.
1,140,000 tons at 10 cents a ton included in pur-
chase of Walker lands USSC. Fin. Com..
Dec. 20, 1910.
Royalties —
increase in price in royalties is owing to the ore
bodies available becoming scarcer 8 — 436.
royalty or royalty value may be less on account
of the high cost of mining 15 — 1005.
royalties given by Gayley are for the period in
the nineties S — 462.
20-cent royalty in perpetuity paid by USSC T. H., vol. 2, pp. 1796-
1798.
under the Carnegie regime, when the steel com-
panies owned but little ore, the royalty for 55
■ "■ ■ cents to 60
-''""" £—435-6.
4546 UNITED STATES STEEL COKPOEATION.
OEE— Continued.
Royalties — Continued .
Mansfield and Columbia Old Range ore property
at Crystal Falls, Mich., offered to Casco. Costs
are, royalty, 35 cents; mining, $1; rail rate,
40 cents; Lake rate, 60 cents, or $2.35 Lake
Erie ports Carnegie Co., dir.,
Dec. 29, 1900.
Norrie's cost is 40 cents royalty; mining, 85 cents;
rail and Lake rates the same, making $2.25 Carnegie Co., dir.,
Dec. 29, 1900.
ten years ago leases were probably 50 per cent
cheaper for the same ore IS — 870.
15 cents a ton royalty in 1907 was a sufficient price IS — 875.
Great Northern ore lease, royalties, and mini-
mums, 1907 to 1917, table of IS— 1412.
Great Northern lease provided for charge of 85
cents a ton in 1907 and increased 3.4 cents every
year T. H., vol. 2, p. 1762.
1908 rental was 88.4 cents a ton T. H., vol. 2, p. 1762.
Leases made in 1910, with royalties as high as 75
and 80 cents a ton in the ground IS — 869.
royalties run now from 50 to 90 cents S — 436.
25 and 35 cents a ton royalty were the last prices
reported to Perin, in the Alabama district 16 — 987.
Mansfield mine bought for $425,000, and other
land secured at royalty of 30 per cent Carnegie, dir.,
Feb. 5, 1901.
Whiteside Forty, adjoining Mr. Hill's property,
containing 7,000,000 tons, lease recommended
at $100,000 and at royalty of 20 cents and a
minimum of 25,000 tons USSC. Ex. Com.,
Dec. 30, 1902.
Gayley does not know of any other block of ore
property in the Northwest outside of this
(Whiteside Forty property near Hill's prop-
erty) and property of Mr. Hill. That they
will report if any new ore is found. They are
satisfied it will be some isolated spots on the
Mesabi Range USSC. Ex. Com.,
Jan. 6, 1903.
37i per cent ton royalty to Canistea Ore Co. for
property in Mesabi Range and $500,000 bonds. . USSC. Ex. Com.,
Jan. 17, 1905.
10 cents ton royalty and $225,000 cash on Clairton
mine purchased from W. P. Snyder USSC. Fin. Com ,
Feb. 14, 1905.
VALtJES —
enhanced very materially in the past 10 or 12
years on account of increased consumption and
because amount of ore deposits has been pretty
well defined, at least within the reach of the
markets of the country, and possible develop-
ments are known is — 843.
Smith, when asked if the difference between the
valuation of $100,000,000, as against $700,000,-
000 by the USSC, of the ore grows out of the
combination and monopoly, stated that he
would read the language of his report at page 50 :
"Moreover, a considerable part of wnatever
actual appreciation has occurred in ore values —
that is, up to 1910 — undoubtedly is due to the
rapid concentration of ore i
hands of a few interests, and i
hands of the Steel Corporatioiz
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niojj sapijiOBj TiopB^jodsuBJi padopAap vCiqSiq
■^68 — I sai^jadojd pajmboB aou aABq
iCaqi pnB e^nBqDjant aio toojj ;qSnoq XpaniJoj
Biaonpojd pa^B aqi aBnBoaq an^BA ni pasBaJoni sBq
■pennijnog — saaiv^
• patiupnoo — aao
lf9f
•iioixvaojaoo aaais saxvis aaiiKn
4548 UNITED STATES STEEL COBPOEATION.
OBE — Continued .
PEICES — GENERAL —
the demand in the North has largely made the
price of the northern ore. In the South the
demand ia not so large 13 — 874.
Bessemer ore maintains its price because it is more
closely held, and it is needed to continue the
operation of the Bessemer plants, and on ac-
count of being more extensiA-ely held the price
can be controlled better than in the case of the
non-Bessemer ores 17 — 1254-1255.
northern ores have made a higher margin of profit
and can stand a greater shrinkage in price than
southern ores 15 — 1030.
Great Northern ore lease had little effect upon ore
prices because most Steel concerns own their
own ore 19 — 1411.
(Note. — Iron makers might not own ore and
they sell pig iron to steel companies.)
ore lands were appreciated in value by owners
more after the making of Great Northern lease
withUSSC. (Schwab) i9— 1411.
Hill lease had effect of raising value, and increase
in royalty increased selling price IS — 844.
Hill ore lease had effect of raising value of ore;
and if Hill ores are thrown upon open market,
it will reduce price to extent of reduction of
freight 3-83; 8^36; 13-869,870 19—1413.
sales of non-Bessemer ore to affect the market .... 19 — 1411 .
price of pig iron recommended by president of
USSC. to be maintained by purchases and
even by shutting down furnaces for the benefit
of finished products USSC. Ex. Com.,
May 5, 1903.
association and fixing of prices not to be partici-
pated in by USSC. as USSC. has no more ore
to sell and is not interested in price USSC. Ex. Com.,
Jan. 20, 1903.
PeIOE — METHOD OP CALCULATION—
If price is $5.50 and standard is 55 per cent that
would be 10 cents a unit. If the ore runs 52
per cent it would be 3 units below standard
and it would be 3 times 10 off the $5.50 price,
or 30 cents. If it varied more than 3 units,
then the deduction per unit increases as it is
less desirable and does not bring the same
relative price per unit. It takes much more
fuel to smelt a lean ore than a rich one IS — 896.
If 61 per cent metallic is the base and the ore ran
only 58 per cent the price would not be .fifty-
eight one-hundredths of the base price. . .'. IS — 896.
on the Lakes they always have an ore of a fixed
percentage of contents of metallic iron to figure
values from, up above or down below, as the
ore may analyze is — 896.
Price — Figures and tables —
Crowell & Murray's table of prices 18 — 986-7.
price and tonnage tables 6—305,306,307.
prices 1900 to 1910 lower than for any other 10
years, except the 10 years immediately pre-
ceding. Depression in business in 1902 and
1903 and the fact that the
came into the market befor^^^BH^H^^^i^^_s^
principally the causes of ax^^^^B^^^B^^^^
^
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— 9XSO0
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4550 UNITED STATES STEEL COKPOEATION.
OEE — Continued.
Ohe teanepoetation — Continued.
Vermillion Eange ore carried by Duluth. & I. R.
RR. to Two Harbors on Lake Superior; Pitts-
burgh SS. Co. to Conneaut; L. R.; and E. LS.
RR. to Pittsburgh 5—84.
Vermillion ore taken over other railroads S — 84.
ore was sold by Gt. Northern Ore. Co. f . o. b. boats
Lake Superior ports 1 — 22.
freight conditions would affect value of ore 8 — 436.
Superior ores are carried 1,000 miles to Pittsburgh . 8 — 436.
Sales —
sales of non-Bessemer ore to affect market by
Carnegie Co Carnegie Dir.,
Feb. 5, 1901.
no old range ore for sale in 1901 by sub cos. of
USSC USSC. Ex. Com.,
Apr., 10, 1901.
Cambria refused 100,000 tons, although sold
75,000 tons promised by Mather USSC. Ex. Com.,
Apr., 10, 1901.
250,000 to 300,000 to Jones & Laughlin of USSC.
companies' Mesabi ore, during 1901 USSC. Ex. Com.,
Apr., 11, 1901.
Great Northern Ore Co., has sold ore to USSC 1—22.
market for western and northern ore is increasing
rapidly 5—149.
Shipment —
table of statistics of the American iron trade for
1910, showing ore shipments and production of
different grades of iron and steel 7 — 417-418.
Peecentaqb of Metallic content, etc. —
two tons Lake Superior ore to make a ton of steel. 13 — 846.
60 per cent metallic and 0.021 phosphorous would
be worth a great deal more than ore 60 per cent
metallic and 1 per cent phosphorous. IS — 869.
dry ore at 212 F., ore, would have different value
from ore with 10 per cent moisture, because 55
per cent metallic iron would have 5J units
of moisture to deduct from the 55 per cent,
which would give only 49.5 per cent yield 13 — 869.
ore richness Hull Rust district, Pittsburgh con-
tained 64.33 per cent iron, 1906; 63.63 per cent
iron, 1907
Aragon mine on Menominee range. Grenade ore
contained 59.16 per cent iron 1907 T. H., vol. 2, p. 185.
Lake Superior ore, first class, contains about 56 to
60 per cent iron 7—399.
Lake Superior ores 51^-51 per cent metallic 1 — 18.
Lake Superior ores 56 to 46 per cent metallic 1 — 18
Superior ores contain 55 per cent-60 per cent iron. 3 — 84.
2 tons Superior equal 3 tons German 3 — 84.
3 tons southern ore required to make a ton of
steel IS— 84S.
TCI. ore varying from 37 to 45 per cent, or an
average of 40 per cent would contain 800 pounds
of iron to the 3,000 pounds of material. So ap-
proximately the relative value as to getting
iron out of the same number of pounds of mate-
rial between the Bessemer 60 rier cent iron anrl
the self-fluxing Birmingham
iron — would be as 8 to 9
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jad 22 oi 8x 'uoji oinirjam juao jad g^ o| q?- si
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• panui^uoQ — aao
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4552 UNITED STATES STEEL, CORPORATION.
OBE LANDS— Continued.
Divided and Classihed as Follows — Continued.
6. Mesabi district
7. Vermilion district
8. Marquette and others
9. BinQingham district
10. TCI. holdings
11. Cuban
General —
3 plana enumerated by Mr. Gardner: (1) Dissolu-
tion of ore holding corporations; (2) Govern-
ment control; (3) constitutional amendment to
permit Government to buy back and lease ore
land f 2— 1547-1548.
Gayley said "he would buy every pound of ore
and every piece of ore property in the North-
west" USSC. Ex. Com.,
Dec. 2, 1901.
combined control was important to be able to get
mixtures and variety required for mixture IS — 1281.
not sufficient quantity to justify new concern
going into business 18 — 1291.
control of greater part of ore land prevents unlim-
ited competition, even though there be inde-
pendent concerns 9 — 533.
small tracts of, are open to purchase, but they are
too small to justify any large concern in erecting
a plant 75—1015-1016.
southern ore being in pockets, and ore not being
pxu-chasable from competitors, a new concern
could not start there profitably 18 — 1292.
change in method of buying ore from the old cus-
tom of buying it in the open market to the new
system of buying the land in fee, and the taking
in of 75 per cent or 80 per cent of the northern
ore by large companies would naturally have
the effect of enhancing the price of ore in the
hands of independent people 15 — 985.
independent holdings of ore land — Gates acquired
ore land for Illinois Co., and that caused hard
feelings with stockholders in Minn. Iron Co.,
and caused amalgamation of Minn. Co. with
Ills. Co 1—29.
geologists say possibility of future discoveries of
ore is remote is — 1282.
estimates of quantity can be made by careful
drilling i.?— 871.
Gayley says every Forty has been drilled USSC. Ex. Com.,
Jan. 6, 1903;
Dec. 30, 1902.
80 to 90 per cent of all steel made in country is
made from ore from Lake Superior region 18 — 1282.
the two great ore bodies are Mesabi Range and
Gogebic and Marquette and Menominee, and
next in importance is the Birmingham, .Via.,
district 15—972.
Perin meant to include Marquette Range and
Vermilion Range in list of two great ore bodies.
Old Range includes Menominee, Marquette,
and GogebiC; and everything from the North is
Mesabi or ifinnesota and Vermilion 15 — 993.
first operation of various ranges sggj^u^^^^^i^m^m^amm-
M. A. Hanna & Co., sales agents f
ore
^^J
■on— «■
m sq^jnoj-esjtp silm.o 'OSSIl — sSub'JJ aijanbrejij
■ 89il — fS ■ , , ■ 3^9 'sguira aio-uon pado^aAap , , pap^aq) tioiS
-aj jouadng aji'oq; trt sSmpioqsaraBdnioaqns 'OSSIl
>6S — ^ ntB^tinojf uoij
JB anira oiq'BAS.ajj; aqj tn ^sajajui iiB SA^q 'OSSIl
■on — S j^Bq-ano oijqnday; pnB Ji^q-auo stmo
'OSSIL — jau^sip BimSjt^-iqBBaj^ 'anini uoraj^
•OtI-60T— ? '■ " "' "■"■"■ "ji'Bq raqjo aqi iCjiTO^j
33(^0; ^'^A 'jI'''1"9^o SUMO 'OSSIL — s^pn oiqcAiaj
'Otl — S s-to pi'B pauim si ^inof jCq pjaq puB[ ajo
'Oil— S stpjg-jtioj Buqm'BO 'q!(jg-ano
SUM.0 'OSSIL — aoT'oi 3mnoq'Bj\[ ';oTi;stp Smqqig
"OTI— S^ 8q;jnoj-aajq» 'OQ Jp AioqnB^s -
ppox pui! q^moj-auo stmo 'OSSIL — ?aF?9;p veAv^
■S9SI— Sr (Z82T p™ 08gT-9T eas '0T6I
tn pasn ajo jo suo^ OOO'OOO'O?' ^o '[aa^s jo suoj
o6o'000'9S o* 'paanpojd pajs }0 '6i8T in suo?
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-m JO :)unoooB uo aiqBnj'BA' ajoin StrmojS Ai
-^H'BjsuoD SI qoiqAv puB 'ap'Biii si jaajs \\v jo jnaa
lad 06 -to 08 qaiq^ Jo 'aJo jouadng aT[Bq; jo }uao
jad 08 -10 Si (q^Avqog '106T 'iS 'asQ) sumo 'OSSIl
■S06I '9S '^^H
■S06I 'e ^«H
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%aA. ^ou sue; oOO'OOO'Oi JO 000'000'09 Bieq 'OSSQ
Smqqijj puoAaq jo uotidaaxa q^m ptiB
'}a3 ;oii pinoa aAi ^vvf} uot^daoxa ano sd^qiad
q}L4i 'poo3 81 %'Bm oqBno]^ aq^ no Stnq^yCiaAa
puB 'Tiot|tnw'a7\^ aqj no Smq^XjoAa s'^q 'OSSH
(•^•t'BO) '(W^^M PU'^ Tioi|iraiaj\^ uaaAi.}
-aq pappvip si qoiqjii) aouadng 'aJcBq; Jp ■BuiBq
-Biy pTO aassannaj, pms ' 'a^^^anbi^pj 'oiqaSo-o
— aaniraonej^ ''OSSIl -^l pauMO aiaqA K)OTJ}sip
— soNiaiOH 'bssn
'0061 '9 'AOM
'•jtq; 'oq atSaniBO P'l^l
ajio joiajsniej^ puBsuBOi 'oo Jp Aauuc^oj^ 'weSiixoQ
'0T6T 'ZZ 'AOJSE
'•raoo 'nij 'Oggxi OSSn
jCq tia3['E; ^OTi /(ladoid samra uoii raaqajq:jaa;
'8011 — 91 Awmoiomvaoo
%i Suxmra ;0Ti sba sa^isQ (jng 'p^q' Bajira gi
ibj jnqiijy ;joj; 0^ a^Bi :(xiao-o^ "B s^q puB 'aSn^^
iqwap^ aq:j sib aio qamn s^ ku'eo wim. 'jnq^jy
ijoj tnojj saiini qi :)noqB si qoiqAi ''uiB;niioi\[
asoojij siq ^Bq; pa^uts ea^iiQ i'exi% b/bs Xa^qag
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ui aB'Ba][ B HI ^saja^^ni umo pnB 'aSuBy; aammou
-a]i\[ aq; m 'Bsiajng aq'^ pa^jBO anira b apnpni
qoiqM 'laa^BBO paB|Baj;noj\[aq:jpiiB !eiiq83[ieai
puB niBq^Bqo aq; pnB 'bjib^ |b;8jCio ^B'aSnBy;
aaninioTiapj aq; ni 'aniin ]o;Bug aq; ujao 'ui
pa;saja;ni namai;ua3 x6 ''oq ^ uo;iojy[ 'A'eqoi^Q
'162— SI 00 :y BUUBH 'V 'H ^q panoj;noD ''oq sjq
Smqs;;! J osjb puB ';uB;aodnii os Suiaq ;ou j9;;b|
9^* ''OO HTIO puBjaAajo aq; piiB'''oo Suiuijn
;jodM.aj^ ''00 ^ qSnBqraB;g pox !'oo ^ -ftau
-ni5[op( 'ubSujoo !'op3S>jaq;Bi\['spnBpioij '.'oq
2p 'iro;j[o^ 'iCBqajSQ Aq pa;Bjado sauiin ;itBqoj[ara
' panni;uoo — TvnsRSQ
•panupnoo— saUVI !KtO
■089T "d '2 qoA ''H '1
SSS^
■jjoixvaojaoo laaxs saxvis aaxiN:!!
4554 UNITED STATES STEEL COEPORATION.
ORE LANDS — Continued.
USSC. Holdings — Continued.
Queen mine is the same 3 — 110.
USSC. has three-fourths of the Marquette Range,
principally in the Lake Superior mines.
USSC. owned the Champion mine and other ore-
bearing land not opened up. USSC. has alease
on the Negaunee mine. USSC. lease on the
Queen group at Negaimee has expired, and the
property acquired by the Cleveland Cliffs Iron
Co 7—394.
Gogebic Range — ^USSC. owns the Norris group,
the Aurora, and at Bessemer, the Tilden mines. 7 — 394.
USSC. owns the Aragon and Chapin mines, the
Iron River mines, and some at Crystal Falls on
the Menominee Range 7 — 394.
USSC. Purchases.
Clark & Sauntry ore property bought by ASWCO. ASWCO. Dir.,
Feb. 28, 1899.
StegmiUer property bought by ASWCO ASWCO. Min. Ex. Com.,
Mar. 6, 1900.
300 acres of ore land 47 miles from Lake, which by
their contracts the Carnegie Co. could not pur-
chase, but which was bought in part through
Corrigan Carnegie Co.,
Nov. 6, 1900.
320 acres Canadian ore land bought with 400 feet
outcropping vein and 500 feet, both rich in iron,
bought for not to exceed $4,000 (low in phos-
phorus) Carnegie Co. Dir.,
Nov. 6, 1900.
American Mining Co. for ASWCO. bought Anti-
cokan mines ASWCO. Min. Ex.''Com.,
Dec. 10, 1900.
Bone tract at Negaunee bought for $100,000,
2,000,000 to 4,000,000 tons Carnegie. Dir.,
Mar. 11, 1901.
Aragon mine bought by National Tube Co.
(Kerr) CSCO. Dir.,
May 28, 1901.
Negaunee mine — purchase of one-third for not
exceeding $500,000 advised USSC. Fin. Com.,
June 21, 1901.
Negaunee mine — one-third interest purchase for
$500,000 recommended USSC. Ex. Com.,
June 21, 1901.
Wicks ore property on Cascade Range, purchase
recommended for $200,000 for 640 acres USSC. Ex. Com.,
Jan. 21,1902.
Day ore property to be bought from Howe &
Washburn for $200,000 or less USSC. Ex. Com.,
July 29, 1902.
Millie mine, near Chapin, bought for $46,000 USSC. Ex. Com.,
Aug. 5, 1902.
Monroe property acquired through the Chemung
Iron Co., containing 25,000,000 to be bought in
tee on a basis of 30 cents a ton, and bonds to be
issued therefor. The traffic contract for this
will be secured, and "by securing the traffic
contract we secure the ore in this property free
of royalty, the profit on the traffic contract
more than compensating for the royalty " USSC. Ex. Com.,
May 12, 1903.
Fay option on Mesabi ore lands to be acauired. USSf; F.t nnm
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4556 UNITED STATES STEEL COEPOKATION.
OEE LANDS — Continued
KB SUPBEIOR DiST
taxable value in J:
Minnesota ore land is worth SI a ton according to
Lake Supbeior District — Continued.
taxable value in Minnesota of different grades. . . 75— ld4_.
'ScTwab'^e'stimate i5— 1342.
Mesabi district — . „„
finest ore in country (about 55 per cent) J oo-
Mesabi range amount of ore can be accurately de-
termined (Gayley) ^ ^''^■
Mesabi ore land has greatly increased in value . . 6—362.
Mesabi may be exhausted in 60 years .S— 115.
near to surface ^ °"-
stripping of earth done S — 86.
75 to 100 feet in depth 5—86.
ore easily broken and mined by steam shovel. . . S — 86.
Mesabi Range — the mining is a simple matter
compared with the transportation and grading
of the ores 7-^06.
steam shovels used only in Mesabi Range S — 107.
not all Mesabi mines use steam shovel S — 107.
more ore being uncovered for steam shovel in-
stead of shaft mining S — 108.
Great Northern portion was leased to TJSSC.
Companies S — 88.
Hill interests had 200 to 250,000,000 tons, or 10
per cent of Mesabi ore S — 89.
Mesabi Range is at an elevation of about 1,500
feet and the lake is about 600 feet, but there are
ascending grades in going from the mines to the
lake 7— ilO-11.
is about 1,500 feet above sea S — 87.
general trend of grade is downward to lakes S — 87.
independents get ashore S — 87.
transportation from, by (Duluth & Missabe RR.,
USSC.'s road; Eastern Minn. R. R., Hill's
road) 5—85.
no outlet to lakes except Hill or USSC. roads 3 — 91.
independent companies own fee or lease in
Mesabi 5—89.
Lackawanna have holding on S — 89.
Cambria have holdings on S — 89.
Jones & Laughlin have holdings on 3 — 89 .
Republic have holdings on 3 — 39.
Republic Co. 's principal shipments are from Mesabi
district .77-1240.
M.'A. Hanna & Co., own a number of mines in
Mesabi Range 3 — 109.
Vermilion district —
Vermilion Range — no other road besides DIRR.
RR. enters 3 — 35.
Vermilion Range contains about 7,584,870 Besse-
mer ore, and 1,535,351 non-Bessemer ore, and
considerable siliceous low-grade ore 3 — 35.
Vermilion Range has no outlet to Lake except
Hill or USSC. roads 5—91.
Vermilion Range don 't use steam shovel 3 — 107 .
Marquette and other districts —
Marquette Range has 3 railroad
western; the Duluth, South Sbi
and the L. S. & I
y
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4558 UNITED STATES STEEL CORPORATION.
OBE LANDS— Continued.
Birmingham district — continued.
Birmingham red ore is in veins, whicli incline at
an angle of 20 to 35°, and are about 22 feet thick,
of which about 10 to 12 feet is mined, the rest
being left for roof and because expensive to
smelt i7— 1259.
the big vein of Red Mountain constitutes its chief
value from Grades Gap to Reeders Gap, which
is about 22 to 26 feet wide and has about 12 to 14
feet of high grade .Z5— 1002 .
10 cents a ton valuation on Potter ore lands held by
TCI TCI. Ex. Com. Min.,
Jan., 1907.
brown ore is smaller in quantity and costs about
12 J cents a ton more to haul than red ore, which
costs 25 cents 17—1250.
tract of 29 acres belonging to A. J. Steinman, in
district near TCI. now operated by Clinton
Mining Co., at about 25 cents a ton royalty.
Steinman refused 35 cents, at which rate the
land is worth $17,000 an acre i5— 1001 .
Bibb and Tuscaloosa Counties have brown ore as
high as 53 per cent 15 — 1014.
TCI. Holdings—
TCI. has 60 to 65 per cent of entire district tribu-
tary to Birmingham district 15 — 1027.
60 to 70 per cent of southern ore land held by
TCI .r5— 100.
70 per cent of the Red Mountain vein owned by
TCI 75—1002-3.
TCI. has 381,029,700 tons, 86.9 per cent (exclud-
ing leased property), or 388,809,100 tons, or
85.8 per cent of the total holdings of the three
companies (i. e., TCI., Sloss, and Republic), in
ore similar to Steinnann tract, for which 35
cents a ton royalty was refused, and which is
estimated to be worth $17,000 an acre 15 — 1001-4.
TCI. had 50 to 60 per cent of entire Birmingham
district ore in 1907 75-1015.
outside of TCI., 50 or 60 per cent, the remainder
was held by Alabama Consolidated Co., in
1907 i5— 1015.
no land can be bought because held by TCI. and
other companies 15 — 1015.
TCI. ore is the most important on the North
American Continent outside of Lake Superior
district 9 — 545.
TCI. and Republic bought 70,000,000 tons of
Potter group for $800,000, half of which is
owned by the TCI. and half by the Republic. . 77—1256.
Cuban —
Cuban ore is an important factor 9 — 545.
Cuba has more ore than Mesabi 18 — 1333.
quantity of Cuban ore has been estimated by
Schwab's engiaeers to be as much as Mesabi
ore T. H., Vol. 2, p. 1672.
Cuban— Bethlehem has 500,000,000 tons, or 60 or
70 per cent of it 75—1343^.
Cuba has large deposits owned by Bethlehem
Co. and Penn. Steel Co., sufficii ' - • ■
hem Co. for 250 years
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4560 UNITED STATES STEEL COBPOEATION.
PIG IRON—
GENEEAIi —
tin-plate people did not use pig iron because
they did not make steel ^ *°-
National Tube made their own pig 1 — ^^•
Riverside made their own pig 1 *5.
subsidiary companies of USSC. will not bid „
against each other if buying pig iron "^^^ „„ f maV
Apr. 20, 1901.
$9 in 1904 before purchase of TCI. in Birmingham,
after purchase of TCI. by USSC, price was
raLsed to $12.50. Iron Age says, July 25, 1908:
"One of the largest interests is practically out
of the market refusing to depart from the sched-
ule of $12.50. The announcement that the
output is not to be increased to the extent
recently arranged for is significant" T. H., vol. 2, p. 1382.
purchase bv Carnegie S. Co. would put up price
$lor|2.: CSCO. Dii.,
Apr. 1, 1901.
makers met last week and agreed to run only 4
days a week. They are tired of low prices CSCO, Dir.,
Nov. 24, 1903.
makers met and are to get Sternberg back into the
fold CSCO. Dir.,
Nov. 24, 1903.
to be purchased by CSCO. at price at which it can
be bought regardless of the Valley Association
prices CSCO. Dir.,
May 7, 1901.
118.50 for 30,000 tons — advisability of purchasing
for third quarter of 1903, and to exchange coke
at $3 per ton; president USSC. "believes we
ought to always be buyers of some pig iron;
that it would be better to even shut down some
of our high-priced furnaces and be purchasers;
that the price of our finished steel products
being regulated by the price of pig iron, we
ought not to be endeavoring to get the cheapest
iron; .that we ought to maintain the price by
little purchases; that $1 a ton is a little thing
compared with the advantages we receive in
the finished products; that if we had pur-
chased pig iron there would not have been the
present downward tendency in it " USSC. Ex.'Com.,
May 5, 1903.
difference in price of pig iron depends buying
raw material or buying part of it and trans-
porting part, etc 17—1227.
price has fallen so there is a big differential be-
tween pig iron and billets and sheet bars CSCO. Dir.,
Jan. 27, 1908.
real problem is to sell finished goods and thus
utilize pig iron 77—1258.
outside furnaces are closely allied to plants not
within USSC. organization, and until the needs
of these plants are supplied, constituent com-
panies can not get pig iron. New furnace for
Youngstown, Ohio, and 2 new furnaces for
Lorain, Ohio, recommended USSC. Ex. Com.,
Sept. 23, 1903.
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SI S}TiB|d luaqinos mojj q}JO^ ni Snixps aoj uoSBai
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loj q}io^ aqi ni pps naaq sBq noii Sid niaq^nos
— KsaHxnog
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4562 UNITED STATES STEEL, COEPOEATION.
PIG IRON— Continued.
Prodtjction and Cost Statistics — Continued.
PIG IRON IN PENNSTLVANIA.
(Report of Secretary of Internal Affairs.)
1903. 1909.
production (g.t.) 2,111,643 10,721,024
realized value. . . $126, 857, 231 $186, 963, 842
average realized
value per ton . $15. 64 $17 . 44
value of basic
material: Ore,
scrap ore, cin-
der only (fuel,
limestone, and
other expense
not c o n B i d-
ered) $61, 634, 972. 00 $9, 144, 433. 00
$7. 60 $8. 31
average number
of days in op-
eration in 1902
(days) 314 300
total number of
workmen em-
ployed 17,101 14,921
aggregate wages
paid $10,191,759 $8,762,304.00
average earnings
per year for
each man $395. 97 $627. 20
average daily
wage $1.89 $2.09
cost of labor per
ton $1.25 $0.83
tonnage per man
per day (g.t.). 1.51 2.39
Schwab approved of these figures substantially.. 18 — 1855-6.
Gary sas's these figmres included USS. Co. 's plants
as well as other works in Pennsylvania and that
the figures cover all the people in Pennsylvania
engaged in the manufacture of pig iron. But
he says USSC. pays higher wages than almost
anyone else 5 — 291-292.
Schwab at first (p. 1353) said in answer to Mr.
Young, "tlie wage earner gets a portion of the
benefits of the policy that builds up industries
here," and the employers "are compelled to
give it; but only a share, "because you have to
make allowances for your increased capital to
obtain the result," and said he did not want
more than nineteen-tweutieths of the benefit of
decreased cost, and that the wages of the la-
borer has increased, and also (p. 1355), "As a
matter of fact, under similar conditions the la-
bor cost for a given article has increased pro-
portionately to the daily earnings of men" 18 — 1353-1355.
but later he assented to the figures in the foregoing
statement that in 1902 $1.89 was average daily
wage and average cost of labor per ton was $1.25,
while in 1900, §2.02 was average daily wage,
and cost of labor per ton was Si> ronta ^^a tv^»
amount produced per man was
1.51 tons per day per man in 1
per day per man in 1909
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4664 tTNITED STATES STEEL COEPOBATION.
PIG mON— Continued.
Cost — Sotjtheen — Continued.
Birmingham has always been $4 cheaper than
Pittsburgh and there has been no great varia-
tion for 10 or 12 years. Many companies allow
a sinking fund of 25 cents a ton 15 — 1031-2.
$3 or $4 cheaper made in Birmingham district. . 17 — 1268.
made cheaper in Birmingham than anywhere in
world (Gates testimony) 1 — 7.
$9 a ton at Birmingham 1 — 7.
$11 a ton outside Birmingham 1 — 7.
$6 a ton in nineties 1 — 37.
$9 a ton now 1 — 37.
Nov. 1, 1907, TCI. could make pig iron at $9 to
$10.50 a ton i7— 1269.
at $4 to $6 made at Trussville furnace of Southern
Steel Co. by negro labor which was not paid
for 15—1012.
cost of manufacture was high in Nov., 1907, in
TCI. plant because the mines were not de-
veloped so that they had the full supply of
minerals of the character needed 17 — 1269.
the improvements were then going on in TCI.
plant ^7—1269.
with modem well-equipped plant, the cost of
pig iron at Birmingham district would be $9
a ton i7— 1269.
coBt 1894-1896, prepared by Phillips, of TCI. for
Geological Survey 15 — 984-5.
$3 or $4 difference in cost between South and
North is based upon difference in high cost of
assembling materials in North, and the differ-
ence in the 2J-cent royalty charged up in the
South as against the substantial royalty paid
in North. Calculation of 2^-cent royalty is
based on purchase of 70,000,000 tons of ore for
$800,000 of Potter group for TCI. and Republic . i7— 1256-7.
difference in cost of production between TCI.
and Pittsburgh would be from $3 to $4 a ton. . i7— 1227.
practice, best practice in South is to use mixture
of about 60 per cent hard or fossiliferous ore,
a certain proportion of brown and so-called soft
red ores, and about 200 pounds of limestone
and dolomite, which is a form of limestone
carrying magnesia in combination. That 200
pounds of limestone is used as against 1,000 or
1,200 pounds of limestone that would be used
in ordinary mixture with the same amount of
ore and silicious matter to be fluxed 17 — 1228.
$6.50 estimated cost from India 15 — 325.
PUBCHASES AND PRICES —
prices quoted at $15-$15.50 Valley CSCO. Dir.,
Apr. 1, 1901.
price fixed at $13.75 per gross ton CSCO. Dir.,
June 25, 1901.
purchased 17,000 tons $15.25 per ton; 6,250 tons
basic pig $13.25, and 1,700 tons low phosphorus
pig $20 ASWCO. Dir.,
July 30, 1901.
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4566 UNITED STATES STEEL, COEPaEATION.
PIG IKON— Continued.
PuBCHASES iND PRICES — Continued.
dSCO. to purchase 10,000 tons at $15 USSC. Fin. Com.,
Sept. 12, 1905.
8,000 tons, $17.25 Valley bought for Sept.
delivery USSC. Fin. Com.,
June 26, 1906.
$22.81 average price for sales of about 26,000 tons . CSCO . Dir.
Dec. 3, 1906.
high price of pig iion will advance price of
steel raw material S3 a ton CSCO. Dir.,
Dec. 3, 1906.
$18.75 price delivered at Pittsburgh paid by
USSC. (1907) (Gary) T. H., vol. 2, p. 1690.
40,000 tons $18 Valley bought USSC. Fin. Com.,
Feb. 8, 1910.
purchase by subcompanies of 2,250,000 tons
referred to chau-man and president with power. USSC. Fin. Com.,
Feb. 24, 1910.
purchase of 25,000 to 50,000 tons referred to
president with power USSC. Fin. Com. ,
Feb. 24, 1910.
Birmingham base price is $9.50, and furnaces at
Pulaski, Va. Bristol Furnace, in Tennessee,
and Rockwood, at Chattanooga, can not live
at this price (1911) i.5— 1030.
POOLS OE ASSOCIATIONS—
(See also "Steel Plate Association"; "Structural
Steel Association.")
Structural Steel Association agreement 24 — 1813, 1817.
Steel Plate Association pooling agreement was pro-
duced by Eugene C. Bonniwell; was printed by
S. B. Kauffman, Nov. 9, 1900 iO— 549-558.
Structural and Plate Association had practically the
same officers 24 — 1729.
confidential information went only to Temple 24 — 1731.
Structural Steel Agreement in evidence in the por-
tions that most appealed to Temple as commis-
sioner are similar to the agreement under which
he operated as commissioner 24 — 1729.
Structural Steel Agi-eement in evidence is similar to
provisions under which Temple operated 26 — 1730.
printed copy of report made by Temple to members
of pools 2.^—1721.
sales between members were figured just as sales to
outsiders 24 — 1728.
structural agreement provided against lump bids,
because plants having steel works and erecting
plants could underbid on their own work 24 — 1727.
agreement B was merely that unanimous consent
was necessary to advance prices, and on demand
of two or three parties they could be lowered 24 — 1728.
prices were not raised 24 — 1728.
prices were remembered by members 24 — 1729.
no record of proceedings were kept except one set
of minutes, which were destroyed in Dec . , 1904, and
members remembered prices 24 — 1729.
minutes were destroyed in 1904, and all papers were
to be destroyed 24 — 1729.
provided for fixed price and percentage n! bnainpfiH
taken
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4568 UNITED STATES STEEL COEPOEATION.
POOLS OR ASSOCIATIONS— Continued.
tax became no indication of the profit on steel S4 — 1729.
after 1904 there were no penalties for overshipment or
premiums for undershipmenta ^4 — 1733.
no distribution of money made after second or third
year but was repaid to those who paid it in ^4 — 1721.
second year money was returned to those who paid it
in U—1721.
Temple was in agreements continued until 1904 24 — ^1717.
competing firms exchanged information, even as to
costs u—nii.
costs were finally freely interchanged between mem-
bers of pools 24 — 1732.
agreements were not adhered to 18 — 1288-9.
Schwab said $100,000 forfeit in pool would not have
deterred him in the Carnegie Co. from taking a
good order in violation of a pool agreement 18 — 1286.
"gentlemen's agreements" were not made for any
period of time 18 — 1285.
agreements were not enforcible in court, and only
damages collectible were the money deposited 18 — 1286-7.
violation of agreement did not debar any one from
entering a new pool 18 — 1320.
"rail report" stated not to be of so much value on
account of the transfer of national rails CSCO. Dir.,
Apr. 23,|1901.
after formation of USSC. representatives of the sub-
sidary companies continued to send representa-
tives to the meetings, of pool members, after ter-
mination of the agreement 24 — 1735.
Illinois Steel Co. sent representatives to meetings of
pool members after formation USSC. 24 — 1735.
use. waa formed, notwithstanding absence of com-
petition through pools, because of the fear of return-
mg competition 24 — 1722.
Gayley says the change discontinuing the old agree-
ments may have been a natural result of the forma-
tion of the USSC 7—371.
up to the formation of USSC. manufacturers entered
pools and fixed prices, with fines for violation 7 — 369.
Gayley states, when asked in reference to agreements
since the formation of the USSC. that he does not
know of anything "that will maintain itself with-
out some influence being brought to bear," when
asked by the chairman whether "this equilibrium
in prices (since formation of USSC) would main-
tain itself without help from anybody " 8 — 431 .
aU agreements were wiped out in December, 1904. . . 24 — 1717.
Gary said agreements were no longer necessary
(Temple) 2i— 1718.
"gentlemen's agreement" is an agreement that can
not be enforced at law 24 — 1746.
after dissolution of pool agreements, there were not
gentlemen's agreements, but only reports of sta-
tistics 24—1746.
:x
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■panni;noo— siioiIVIOOSSV HO SIOOJ
•JsEoiivaodHoo naaxs saivis aaiiiia
4570 UNITED STATES STEEL COKPOEATION.
POOLS OB ASSOCIATIONS— Continued.
Schwab testified before tbe Ways and Means Com-
mittee (Dec. 15, 1908) at the tariff hearings that he
would not vary $28 price of rails 10 cents a ton,
because it would precipitate a steel war "that
would result in ruining my works without any
profit. " "I would not vary the price of rails under
any circumstances; not if I knew I was to get 100,000
tons of orders, for the reason that my competitor
next door would put the price down $1, or half a dol-
lar a ton even, and we would be in a position where
we would be running without any profit at all".. T. H., vol. 2, pp. 1650-
1651.
the same is true of all steel products, such as structural
plates, etc T. H., vol. 2, p. 1676.
no manufacturers would change prices for fear of a
steel war in rails, structural and steel products T. H., vol. 2, pp. 1676-
1677, 1650-1651.
members would not exceed proportionate tonnage
even after the dissolution of the agreements if it
iinsettled prices, and would explain excess 24 — 1735.
after dissolution of pool agreements Temple was inter-
mediary for exchange of information Z4 — 1732.
Temple was at meetings after 1904 to 1906 ;2.4— 1733.
Temple 's salary continued to 1906 U — 1733 .
Huston says there is no agreement in existence "only
as a man. If I should say to some one that my price
was going to be so and so I would expect to hold
it" ii— 681.
Huston testified if he said he was going to hold a cer-
tain price he would expect to do so until he notified
others to the contrary. He may have said that to
competitors within the last three or four years. He
would not say that he had not. Competitors have
said that to him in a general way when they would
meet to talk over the general conditions. They
met once following the panic in 1908, and each one
felt that he should not drop prices; that they ought
to stand together — ^without any agreement to that
effect ii-682.
Huston states: "If I should say to a man that I was
going to hold a certain price until I notified him
differently, I would feel obliged to do it unless" —
he had broken his end of it 11 — 686.
attitude of Illinois Steel Co. with reference to main-
tenance of prices was fully considered His. St. Co. , Dir. ,
Nov. 10, 1896.
Rail Makers' Association disrupted, and "serious
condition of affairs arising from the disruption". . . Ills. St. Co., Dir.,
Feb. 10, 1897.
rails pool 1896 and 1897 and then came war, and then
steel makers got together again and fixed the
prices T. H., vol. 2, p. 167fi.
Smith's report stated that before 1898 there was sharp
competition, modified by frequent pools, and price
agreements, and in examination of Smith he stated
tha,t there was no question about the evidence of
frequent pools and price agreements prior to 1898. . 9 — 493.
there had been different agreements 8 — 429.
Giayley understood the price of rails was fixed by
agreement 8 — 429.
Van Ormer had impression that agreementn pvistpH 0=
to rails, brass, etc., but had no kni ~
mation
•£60—0/"
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4572 uxirED states stzel cobpoeatiox.
POOLS OE ASSOCIATIONS— Continued.
Indictment in U. S. i;. WiUiani P. Palmer and others,
of Blue Copper Wire Association, allying eimilar
pro\T=ioii= in pool as structural pooling aEreement,
and found agamst one subsidiary of the ITSSG. to be
placed in evidence. This i= an indictment of the
parties to the "Jackson wire pools" 10 — 552-597.
Indictment is against one of the IT.'i-S. subcompanies,
or iudividuals in one of the subcompanira 10 — 59&-6.
Jackson submitted pool agreement of steel and wire
manuiacturers to the Department of Justice, and
that it had been approved 10 — 568.
Am. Steel Hoop Co. had an agreement with the 111.
Steel Co. to pay them $150,000 a year to stay out of
the cotton tie businws CSCO. Dir.,
July 30, 1901.
Carnegie Steel Co. to keep out of bridge business un-
less A2iIEC0XJ. fail; to make 75 per cent of bridge
work in US AilBCOXJ. Dir.,
May 10, 1900.
FKESIDEin'S —
letter to, on subject of discounts to subcompanies Gen. Man. Sal. Min.,
ilay, 1902.
meeting decided by majority that Cam^e and
National Cos. are not to sell unfinished material
to competitor CSCO. Dir.,
July 1, 1902.
resolution of, as to abrogating 5 per cent discount to
subcompanies Gen. Man. Sal. Min.,
July, 1902.
decision as to sales to independents to be made in
consideration of snbcompany whose sales of fin-
ished products would be aSected Gren. Man. Sal. Min.,
Jan., 1903.
meeting for second week in June, 1903, to fix price of
raiL= CSCO. Dir.,
May 25, 1903.
meeting to pass upon the question of exporting semi-
finished products, such as billets and sheet bars... CSCO. Dir.,
Aug. 24, 1903.
meeting decided that export company is to sell abroad
any raw or finished material on which thev can
show a profit. While as a general thing it will be
imposible to export the finished sheets and tin
plates, there are a few markets where we can com-
I>ete with the European mills CSCO Dir ,
Aug. 31, 1903.
meeting, referred to in regard to fixing price of coke. . USSC. Ex. Com.,
Oct. 14, 1903.
meeting in Pittsburgh, recommending cut 10 per
cent on all salaries under -fS.OOO, but not leas man
$500 USSC Fin. Com.,
Dec. *. 1903.
meeting on appropriations CSCO. Dir.,
Not,-. 20, 1905.
ruling that constitaent company goods are to be given
preference by purchasing agents in all cases Gen. Sal. Man. Min.,
May 5, 1907.
meeting arranged to have reports of capacity of com-
petitors in operation Gen. S^. Man. Min.,
Xov. 20. 1908.
"presidents committee on warehouses," ilr. Dinkev
is a member '. CSCO. Dir.,
"8881 •<! 'S -lOA -H "X ■■■■"
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4574 UNITED STATES STEEL COEPOBATION.
PBICES— Continued.
USSC. used influence to prevent raising when de-
mand was greater than supply on many steel com-
modities 5 — 97.
consumers were interested in maintaining uniform
prices 25—1715.
Gary dinner discussed prices 6 — 273-279.
Gary dinner did not fix prices 5 — 264.
not aimed indirectly to fix prices at Gary dinners 5 — 265.
statement at Gary dinner that each mill should run at
50 per cent capacity rather than cut prices 5 — 265.
chief reason for Republic Co. standing pat was be-
causelarge amounts had been sold to customers and
decrease in price would have caused deprecia-
tions or shrinkage in the value of customer's stocks;
and therefore the Bepublic Co. did not reduce
prices in the end of the manufacturing season 17 — 1270.
Topping told Gary in advance of the projected reduc-
tion in prices by the Republic Co 17 — 1271.
reduction in prices may be destructive competition
to Republic Co. (Topping) 77—1271.
are lower for articles manufactured by trusts than they
would be if they had not been made by trusts, and
Perkins's judgment to this effect is based "on the
fact that the frightful waste of competitive methods
under present conditions of life would have forced
prices on the average in a period of years to a higher
plane than they have been " 22 — 1566.
Belling states that Farrell has figures showing that the
average reduction in price on steel products since
the organization of the corporation was between
$9 and $10 a ton— $9 and a fraction 22—lbQ7.
excluding period between 1890 and 1900, prices have
been lower since formation of USSC 18 — 1332.
economies in combination of USSC. has made prices
relatively lower 18 — 1331.
adjustments of prices of certain steel products referred
to chairman and president with power USSC. Fin. Com. ,
May 23, 1911.
Government control, danger of, stated by Mr. Young. 24 — 1745.
Prices of TCI. products TCI. Ex. Com.,
May, 1906;
Jan., 1907;
Apr., 1907;
Mar., 1907;
June, 1907;
July, 1907.
tlifterence between export and domestic prices of rails
would be about $10 18 — 1315.
law steel imported at price $22 c. i. f Gen. Man. Sal.,
Feb., 1902.
fixed on ore, coke, pig iron, in inventory for 1904; and
in closing books for 1903 values of ores adjusted to
50 cents less than base price 1903; coke at $1.80 net
ton at ovens; and other inventories and securities
in harmony with recommendation of finance com-
mittee of USSC CSCO. Dir.,
Jan. 25, 1904.
$12 pig iron and $32 for structural and plate thought
too big a spread Gen. Sal, Man. Min.
Aug. 24. 1901
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4576 UNITED STATES STEEL COEPOEATION.
PEICES — Continued .
advanced $1 a ton on wire commodities; $2 a ton on
epikes; $1 a ton on blue annealed sheets Gen. Man. Sal. Min.,
Sept. 19, 1906
advanced $2 a ton on merchant goods by National
Tube Co.; 11 a ton on tinplate; $2 a ton on sheets.. Gen. Man. Sal. Min.,
Oct. 17, 1906.
advanced $2 a ton on bars Gen. Sal. Man. Min.,
Nov. 21, 1906.
advanced on bar iron, $1.50 Gen. Sal. Man. Min.,
Feb. 19, 1908.
1/40 cent price for 15 days and after 1/50 cent price
given to independent agricultural manufacturers
to meet competition of Int. Har. Co. The inde-
pendents wanted price of 1/30 cent, which was re-
fused CSCO., Dir.,
Apr. 2, 1906.
reduced to agricultural implement makes to meet Int.
Har. Co. for limited time .» Gen. Sal. Man. Min.,
Apr. 18, 1906.
{See Agricultural Co. and Carnegie Steel Co.)
of brick, sand, cement, and crossties, 1900-1911 10 — 591.
PBOFITS—
last annual (1907) report shows net profits of $160,-
000,000. These profits appear to be earned upon
gross sales and earnings amounting to $757,000,000,
which would indicate a profit of about 27 per cent
on the cost price. But the percentage of profit was
much greater than 27 per cent, probably twice that
amount, because the gross sales given in the report
are admitted to include sales made between subsid-
iary companies. The report does not state the
amount of genuine gross sales — that is, between the
corporation and the outside world — but from com-
mon knowledge as to the average market price of its
output of about 10,000,000 tons it may be safely es-
timated that the gross sales were not more than
from $460,000 to $500,000, which would indicate a
profit of about 54 per cent or upward of 5 per cent
on the cost price T. H. vol. 2, p. 1613.
"in determining the profits since the company
(USSC.) was organized I take the amount paid as
interest on bonds, the amount paid as dividends on
stock and the amount expended for new property,
and the amount carried forward to surplus" (Gary) T. H., vol. 2, p. 1745.
average price of pig iron in 1904 was $12.75, and aver-
age price for 1907 was $23.08. This shows an ad-
vance on purely raw material of 15 per cent. By
multiplying the production of 1907 by $13.68 we
get $350 110,862. Total amount paid to all em-
ployees USSC. in 1907 was $160,825,822. Profit
made last year over 1898 is greater than total amount
paid by corporations in manufacturing of steel and
iron, taking it from the ground and putting it into
merchandise including what was paid to officers.. . T. H., vol. 2, p. 1381.
t'_ $15.50 on everything sold shown by dividing the ton-
nage produced into the profits (Carnegie) T. H., vol. 2, pp. 1789,
1796, 1788-1789.
Carnegie gets profits of USSC. of $15.50 a ton by di-
Kviding their output of 10,000,000 tons into their
earnings for 1907 of $158,000,000 (p. 1796). This
T% was thought to be $130,000,000 (p. 1823), but later
Sf appears to be $160,000,000 T tt nmi 9 t. i7Qfi 1823
p^ (See also, p. 1746, as to what Gary in
$2 necessary profit on ton of pig iron^
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4578 UNITED STATES STEEL COEPOEATION.
RAILEOADS—
the Minnesota ore roads operate about seven months
in the year 7 — 414.
the Minnesota ore roads grade the ore and collect it
into bodies according to the different grades 7 — 414-^15.
the ore roads collect and hold the ore to get enough of
one grade for a cargo load 7 — 415.
USSC. roads are making about 150 percent profitci
about $3,000,000 surplus in year upon capitalizaticr
of $3,000,000 i9— 1399.
USSC. railroads have low operating expenses 19 — 1399-1400.
USSC. roads ought to be very profitable 19— Um.
66 per cent of gross earnings is average cost of operating . 19 — 1400 .
USSC. roads had operating cost of 30 per cent of gross
earnings 19 — 1400.
raUs is only 2 or 3 per cent of their expenditure 18 — 1352.
distribute their tonnage of raUs among a special lot of
customers 7 — 375.
pay good price in order to obtain a substantial rail 7 — 367.
$157,500 for constructing 4J miles main line and J
mile siding, on DMNRY. to Woodbridge USSC. Fin. Com.,
Nov. 3, 1909.
failure to overcome uneven level by grading and cuts
cheapens the cost of construction, but increases the
cost of operation S — 446.
400 steel ore cars to be bought for DMNRY. for
$440,000; 500 steel ore cars, 25 box cars, 50 flat
cars to be bought for DIRR. for $605,000 USSC. Ex. Com.,
Aug. 5, 1902.
500 new cars at $100 for B&LERR USSC. Ex. Com.,
Oct. 21, 1902.
cost 12 freight locomotives $192,480, 1,000 steel ore
cars $1,100,000 USSC . Fin. Com. ,
Nov. 23, 1909.
36.90 miles track of Hull-Rust Short Line bought by
DMNRR. for $753,700 USSC. Fin. Com.,
Jan. 11, 1910.
TCI. district is entered by Alabama Southern;
Southern; L. & N.; and Seaboard. The AB&A.
crosses south of Birmingham 15 — 976.
bonds about $1,000,000 and $1,000,000 to be issued on
consolidation of Masontown & New Salem R. R.,
Connellsville Central R. R. and purchase of Sham-
rock Branch R. R USSC. Fin. Com.,
Dec. 20, 1904.
rCI. sold to southern railroads except So. P. and
U. P., which they reached at Galveston terminal. . 17 — 1233.
road at Duluth to be located and secured USSC. Pin. Com.,
July 3, 1907.
USSC. appointed committee to confer with railroads. 19 — 1404.
railroads Chicago, Burlington & Quincy R. R. and
United States Steel Products Ex. Co. charged with
Ul^al transactions before grand jury. United States
District Court Northern District of Illinois USSPECO. Dir.,
Dec. 15, 1905.
Commissioner of Corporations requested to furnish
evidence held by hia department as to relations
between International Harvester Co. and USSC.
and railroad companies in which E. H. Gary or
Geo. F. Baker or G. W. Perkins is director; do not
live up to principle of distributing orders in pro-
portion to business offered them 4 — 199.
buys from concerns on its line to 1 — —
tion running full and secure ^ : —
therefrom
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4580 UNITED STATES STEEL COEPOBATION.
BAILS — Continued .
Pkioes fixed — Continued.
price could only be made higher or lower by mu-
tual agreement 16 — 1296.
$2 higher than agreed price rails offered by TCI. CSCO. Dir.,
May 18, 1903.
pool in 1884, 1885, or 1886 1—21.
111. S. Co. cut price to $17 a ton in 1897 7—366.
after Federal Steel wag organized the rails went
to $33 in 1899 5—98.
rails went from S17 to $28 because of a pool 6 — 341.
nobody suggested making price lower than $28. . S — 93.
$28 was fixed by rail pools as proper price 75-^1339-40.
did not rise from $17.50 to $28 soon after Fed-
eral Steel formed. . ., 5—92.
pool agreement 1896-7, then came steel war, and
then steel manufacturers got together again and
fixed the price of rails T. H., vol. 1, p. 1676.
price has not changed in 10 years; price was $28
for 10 years, before USSC, except a few years. 5—97, p. 5229.
price fixed for 10 or 12 years 1 — 34.
price has remained at $28, notwithstanding in-
crease T. H., vol. 2, p. 166i.
price remained the same while prices of other
things fluctuated because conditions remained
the same 6 — 34G.
price same at all mills 5 — 283.
price is $28 f. o. b. at the mill, no matter where
the mill is 5^21.
same price at Chicago as at Pittsburgh 5 — 283.
price must soon increase 5 — 97.
annual prices as per Am. I. & S. Ass 6 — 342.
USSC. {See also USSC. and various subheadings.)
price reduction to be taken up with manufac-
turers and railroads USSC. Dir. ,
Feb. 1, 1904.
$28 and not higher because some of us (Gary)
would not agree to higher price S — 92.
price to be advanced if outsiders insisted upon it. USSC. Ex. Com.,
Apr. 9, 1901.
if USSC. reduced price of rails to $22, all others
would have to reduce 18 — 1296.
Gary and Corey appointed committee with power
in regard to making some arrangement with for-
eign producers in regard to price of rails to be
sold in neutral markets USSC. Fin. Com.,
Nov. 1, 1904.
is only 2 or 3 per cent of railroads' expenditures;
but they buy 40 to 45 per cent of all steel pro-
duced in the United States 18 — 1352.
' ' rail report " statement to be of so much value on
account of the transfer of the National rails.. . CSCO. Dir.,
Apr. 23, 1901.
price to be fixed by meeting of presidents second
week in June, 1903 CSCO. Dir.,
May 25, 1903.
prices on standard rails seem to be excepted from
following: "During the week the corporation
decided to cut loose entirely from the policy of
cooperation, and prices t.n-Hotr r\r, oil ^^^/^^A^^tt^
excepting standard rails are i
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4582 UNITED STATES STEEL COEPOBATION.
EAUS— Continued .
Cost — Continued.
Schwab's cost based on 10.15 per cent ore before
Ways and Means Committee 6 — 362.
$12 cost estimated by Schwab was based upon a
cost of 5 cents or 10 cents a ton for ore at the
mines, while to-day ores can not be leased at
$1 a ton, while labor, transportation, ores, coal,
and coke have added cost which makes diSer-
ence ^S— 1309-1311.
$12 estimate by Schwab was based on low cost of
ore and also of labor and transportation 18 — 1322.
Schwab's letter gave price of mill cost based upon
price of ore at 5 cents or 10 cents a ton at mines,
while now the price of ore has increased, and
the same is true as to coke and other materials
used ^S— 1318.
letter May 15, 1899, as to cost of rails was based on
ore at mines of 5 cents or 10 cents a ton, which
has increased in price, which is also true of coke
and other materials 18 — 1318.
$12 a ton estimate is mill cost, while $21.50 is full
cost i5— 1310.
in Schwab's letter the cost of rails was estimated
at $18, and that was upon the cost of ore then,
buthe says that since that time there has been an
increase m the price of ore; and companies that
bought the ore then have made a great profit.
Therefore the profit is greater than $6.50, which
is the difference between the cost of $21.50,
which he said was the cost in 1908 (T. H., vol. 2,
pp. 1634-1635) and the selling price of $28,
where the profit in ore is considered 18 — 1341.
Schwab says the cost of pig iron was in 1908 $14. T. H., vol. 2, pp. 1634-
Schwab says the cost of conversion into rails was
$7.50 in 1908 T. H., vol. 2, p. 1834.
Carnegie said $7.50 cost of conversion into steel is
too high, and thought it was a mistake T. H., vol. 2, p. 1808.
Schwab gave figures on Bessemer steel at tariff
hearings, while his company makes only open
hearthrails T. H., vol. 2, pp. 1635-
Schwab's estimateof $7.50 as cost of conversion ^^^^> 1861.
was the cost of his own mill^ which he said was
only open hearth, which is always about $2
higher than Bessemer, the price of Bessemer
bemg $28 and O. H. rails $30 (see 9-421; C. S.
Co. Dir. Min. Nov. 9-1908). On this point he
said: "The pig will cost, for converting it into
rails — I do not believe we can convert from
pig iron into rails, in our mill, for less than
$7.50 a ton today" T. H., vol. 2, p. 1634.
Schwab told me (Carnegie) that he was not speak-
ing for any steel mill; that he got his informa-
tion (of cost of steel rails at $21.50 in 1908) from
a private producer of ore in Pittsburgh T. H., vol. 2, pp. 1783-
in his present examination, he gives the follow- ■'^'^^^^
ing reason for the $12 estimate and the free
competition and operation at full capacity
which caused it; "My recollection is, as I testi-
fied at that time, that rails could be made at
$21.50 a ton, but that $21.50 waa tViP full r-nst
My $12 a ton was mill cost.
great difference between the ^^^^^^^^^^b^^^^^^
well know, if you manufactui
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4584 UNITED STATES STEEL COKPORATION.
BAILS — Continued.
Cost — Continued.
cost has increased $4 a ton 19 — 1403 .
cost increased at least $3 a ton in last 10 years. . . 3 — 97.
cost $3 to ?6 a ton more now than 1890 i— 37.
cost in 1899 compared with 1908 bv Schwab:
i. e., $12 and $21.50 ' 7S— 1324-1331.
Gayley estimates the cost at about $28 8 — 423.
after Federal Steel Co. was formed and prices re-
duced to $22 a ton the cost was $20 a ton (Gary) . ,5—98.
$22.39 average cost 1902-1908 inclusive (stand-
ard) T. H., vol.2, p. 1784.
cost $32 31 a ton T. H., vol. 2, p. 1728.
mill cost was $22.60 or $22. 65 at time of Ways and
Means Committee hearing 4 — 194.
Gary said when before Ways and Means Com-
mittee cost was $22.65 S— 98.
mill cost of rails $22.65 ton (Gary) .5—93.
some companies may have lower cost than .■ji23 or
$24 for rails -^—194.
costsof materials in Schwab's letter May 13, 1899. 18 — 1322.
$26.50 per ton average cost of Pennsylvania Steel
Co. shows gross mismanagement, and stock
would not be above par of company incurring
such cost (Carnegie) T. H., vol. II, pp. 1626,
1783, 1790.
labor cost is about the same m United States as
inEurope T. H., vol. 2 pp.1666-
1 fift7
only two elements in raw material and labor,
with same labor conditions. United States
manufacturers could compete with European
without tariff T. H., vol. 2, pp.1649,
Garyplantwillhaveonly4men at rolls or 12 men
on 3 turns to make 40,000 tons of rails T. H., vol. 2, p. 1843.
The top of the ingot must be scraped on account
of sponginess, 10 per cent is cut off the top of the
ingot 5—421-422.
Profits —
$4.97 average profit on standard 1902-1906
inclusive (Com. of Corporations) T. H., vol. 2, p. 1766.
at selling price of $28 and cost of $21.50 apparent
profit is $6.50, but the profit is much greater
if the profit upon the ore is considered, which
has increased in value since 1890 18 — 1341.
$16 a ton price abroad would )rield a profit,
Schwab says, in 1899 ^S— 1308.
$28 could be reduced and still a profit be made. . 18 — 1339.
profit not large on 60,000-70,000 tons a month. . . 5—93.
profit is not great at $28 4 — 194.
Transportation —
If USSC. makes exorbitant charge for transpor-
tation over Superior roads, then the only suf-
fered from increased transportation is inde-
pendent who ships over that road 19 — 1395.
$2 a ton increase in transportation 19 — 1404.
mill cost has increased from $18 in 1899 to $21.50
now, which is made up of about $2 increased
transportation, $5 increased fnr ™.w Tnaton'ola
$1 increase for labor
purchaser pays freight wher^^^^^— ^
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4586 UNITED STATES STEEL CORPORATION.
BAILS— Continued .
Export — Continued.
differences in rail prices in nonrestricted country
and restricted or oi^nized country is not $4
a ton " 5—99.
different export prices to different countries S — 94.
average export price lower than domestic S — 94.
USSC. sold rails 27 cents ton higher for export
than in this country (1906 or 1907) 5—94-98.
rails purchased for Panama according to Isth-
mian Appropriations Committee for $31 5 — 284.
Imports —
could be imported under present duty in com-
petition with domestic price of $28 18 — 1317.
rails from foreign countries sold here 1908-9 S — 94.
can be made in this country as cheaply as in Ger-
many, France, or England, notwithstanding
liigher transportation and labor, with equal
conditions i5— 1334-133S.
are cheaper in Germany because of cheap labor. . 18 — 1335.
in Germany can be made at mill at same price as
in United States iS— 1337.
can be made as cheaply in Germany as in United
States r5— 1339.
Belgian and German rails produced and delivered
San Francisco less than USSC. can furnish
them 5—94.
labor cost is about same in United States as in
Europe (see Labor, Cost, etc.) T. H., vol. 3, 1886-1887.
SALES—
policy not to sell to brokers approved by CSCO CSCO. Dir.,
May 21, 1901.
SCRAP—
16 cents cost of, used in usual practice; no profit T. H., vol. 2, p. 1692.
SEMIFINISHED PRODUCTS—
recommendation not to sell to competitors of subcom-
panies who make finished goods 2S — 1634.
not to be sold by CSCO. or National Co. to competi-
tors; and any excess over wants of constituent com-
panies will be sold at figure above the price to con-
stituent companies CSCO. Dir.,
July 1, 1902.
are not to be sold where finished goods can be sold. . . Gen. Sal. Man. Min.,
Mar., 1903.
object is to sell finished goods Gen. Sal. Man. Min.,
Jan., 1903.
cost of sheets and tinplate would hardly permit ex-
port, but there is profit to corporation in sheet bars
used, as well as pig iron and ore; and concession
will be asked from corporation to permit export of
sheets and tinplate Gen. Sal. Man. Min.,
July, 1903.
advisabihty of exporting semifinished products to be
considered by presidents Aug. 25, 1903 CSCO. Dir.,
Aug. 31, 1903.
no raw material is to be exported ■. Gen. Sal. Man. Min.,
Aug., 1903.
sales of, to competitors of various companies referred
to Gary, Frick, and Rogers ^'^"^ 3H=- -^ - - Sup
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4588 UNITED STATES STEEL COEPOEATION.
SHUTTING DOWN OR NONOPERATION OF
PLANTS—
"often the principal consideration about the pur-
chaee and later abandonment of a certain plant
was the fact that by getting the plant we were able
to eliminate its competition " USSC. Aud. Min.,
Dec. 8-9, 1904.
deal of property scrapped T. H., vol. 2, p. 1737.
Perkins as chairman Fin. Com. USSC. to whom was
referred consolidation or dissolution of subordinate
railroad companies at Milwaukee and other mills
referred to Perkins with power USSC. Fin. Com.,
Sept. 2, 1902.
Alabama Wire Co.; "Mr. Edenborn was in favor of
taking the property at a low price and closing up
the plant." "The chairman (Gary) was impressed
with the property if it could be bought cheap,
because of its strategic position. He is opposed to
it if the price is higher, and would not favor pm'-
chase under any consideration if it were intended
to close up the plant" USSC. Ex. Com.,
Apr. 22, 1901.
to dismantle all shut-down plants usual method 1 — 25.
one superintendent does work of many 1 — 25.
labor saving not material 1 — 25.
never bought plant to shut down (Gary says) 5 — 228.
Specitic plants —
abandonment of Rochester plant of American
Bridge Co. and sale of property at best price
obtainable recommended USSC. Fin. Com. ,
Dec. 30, 1901.
Groton plant shut down AMBCONJ. Dir.,
Jan. 20, 1902.
Groton plant shut down and sale for $15,000
approved EMPBCO. Dir.,
Feb. 17, 1902.
Walker plant American Bridge Co., at Home-
stead, Pa., sale for not less than $90,000 recom-
mended USSC. Ex. Com.,
Nov. 11, 1902.
South Side property of AS\\'CO. in Pittsburgh,
question of sale of referred to Frick and Gary. . USSC. Fin. Com.,
Feb. 25, 1903.
Schultz plant fixtures sold AMBCONJ. Dir.,
July 24, 1902.
Pittsburgh plants abandoned AMBCONJ. Dir.,
July 24, 1903.
Buffalo plant temporarily closed EMPBCO. Dir.,
June 16, 1904. '
Horseheads plant temporarily closed Dir., June 16, 1904.
Ehnira south shop closed temporarily Dir., June 16, 1904,
Rochester plant dismantled Dir., June 16, 1904.
Empire Bridge Works, Rochester, N. Y., sale of
property for $20,000 USSC. Fin. Com.,
Jan. 24, 1905.
Sharon Tube Plant, machinery moved from.- USSC. Fin. Com.,
Jan. si, 1905.
Hainsworth or Twenty-sixth Street Plant, Pitts-
burgh, of ASWCO USSC. Fin. Com.,
^ , „ Apr. 18, 1905.
Troy Steel Co. plant at Brpakp ^ ' ' '• 1
tied
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4590 UNITED STATES STEEL, COBPOBATION.
STEEL— Continued.
General — Continued .
Tin-plate people did not originally make steel... 1 — 45.
nickel contracted for from Orford Copper Co. by
AMBCONJ AMBCONJ. Dir.,
Mar. 15, 1910.
USSC. had 0. H. furnaces before the TCICO.... 7^12.
O. H. furnaces owned by -I'arious works of the
USSC 7-^13-414.
tonnage shown by record of competitive business
womd run into millions of tons, all open
hearth, if it all came in CSCO. Dir.,
Apr., 1910.
0. H. process and Bessemer process described. . . 6 — 359-360.
O. H. dearer than Bessemer process 6 — 359.
Gary plant all 0. H 6—359.
electric method will probably replace 0. H.
method in 10 years (Schwab) T. H., vol. 2, p. 1670.
electrical methods will not cheapen methods 18 — 1290.
manufacture by Bessemer and O. H. processes
compared and described T. H., vol. 2, pp. 1662-
1653; 3,360.
duplex process described T. H., vol. 2, p. 1653.
Open-heaeth, Bessemer, and other methods or
FHODDCTION —
if Bessemer ore could be had in plenty, a Besse-
mer plant might be constructed by the builder
of new plant, where Bessemer steel is required . 17 — 1235.
0. H. to be pushed because of the large amount
of non-Bessemer ore being mined compared to
that used Gen. Sal. Man. Min.,
July 20, 1904.
extinction of Bessemer ore causing use of O. H.. 6 — 359.
demand for quality makes necessary O. H.
method instead of Bessemer method.
(Schwab) T. H., vol. 2, p. 1670.
0. H. has increased in use very rapidly for three
reasons: (1) Because better steel is made be-
cause of the elimination of the phosphorus,
which is not eliminated but increased to a
small extent in the Bessemer process by the
limestone and coke; and (2) because the 0. H.
or basic process has made available a large
amount of ore that could not have been used
by the Bessemer process; and also (3) because
engmeers and railroads now demand a quality
which calls for basic steel exclusively on ac-
count of the specifications and restrictions 17 — 1233-1234.
0. H., tendency is now steadily for O, H
ASWCO. would prefer 0. H. if they did not
have their own Bessemer production. "Tak-
ing the trade as a whole, I do not see where
there is going to be any considerable demand
for Bessemer in the future" CSCO. Dir.,
TT • -^^S- 28, 1905.
O. H. will replace Bessemer process in five years
from 1908, Schwab 's prediction T H vol 2 pp 1669-
1670.
0. H. has increased over Bessemer, 1897 to 1907. T. H., vol. 2, p. 1952.
0. H. steel, shortage of, to be made up through
acquisition of Union Sharon -' — '■- ~ - ---
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4592 UNITED STATES STEEL, COEPOEATION.
STEEL — Continued.
Cost — Continued.
structural costs about $3 or $4 more than rails to
make T. H., vol. 2, p. 1649.
plates cost about $3 or $4 more than rails T. H., vol. 2, p. 1640.
$1 more a ton to make bOlets than rails T. H., vol. 2, p. 1648.
cost of conversion of pig iron into steel, $7.50,
Carnegie thinks ia too high and must be a mis-
take T. H., vd. 2, p. 1808.
labor cost must not be taken per man, but with
reference to output per man T. H., vol. 2, pp. 1842-
1843.
in labor cost, the wages per man would have
nothing to do with it T. H., vol. 2, p. 1817.
wages have increased, but total cost of labor has
decreased T. H., vol. 2, p. 1817.
Gary plant will have only 4 men at rolls or 12
men on 3 turns to make 40,000 tons of rails T. H., vol. 2, p. 1843.
cost of assembling is one of the important ele-
ments to be considered (Gary) T. H., vol. 2, 1694.
cost of getting steel to market is an important
element S — 146.
natural gas at cost not exceeding 5 cents at 1,000
feet used in O. H. plants of Carnegie Steel Co.
reduces cost Bridge's Inside History of
the C. S. Co., p. 164.
STOCK TKANSACTIONS—
(See also USSC. securities, etc.. Trade conditions,
TCI., etc.)
small holdings increased in number according to
Boston News Bureau, and Perkins thinks this is so
as to USSC 2:2—1573-1574.
small holders buy in depressions and not when mar-
ket is high so as to be squeezed out when it falls.
(Perkins says) ;?;?— 1573-1574.
STEEL PLATE ASSOCIATION—
agreement 10 — 555 — 558.
Statements of shipments and excess of allotments of
all companies November, 1900, to October, 1906.. 11 — 695,782.
conference was held in New York in the fall of 1900
for the organization of the Steel Plate Association,
attended by C. M. Schwab for CSCO, W. L. King
for Jones & Laughlin, Bufldington for Ills. Steel
Co., W. 0. Park for Otis Steel Co., Mr. Bartol for
Tidewater Steel Co., William P. Worth for Worth
Bros. Co., G. M. McCauley for Central Iron &
Steel Co., Mr. Hirsh for American Steel & Wire
Co., Mr. Shoemaker for Glasgow Iron Co., and
A. F. Huston for Lukens Iron & Steel Co 11 — 649, 650.
Jones & Laughlin were members ii — 640.
Jones & Laughlin's account with Steel Plate Associa-
tion 1902-1904 il— 642-643.
1906, Lackawanna Co. came in n — 687.
CSCO. was party to agreement until 1905 or 1906 10 — 623.
members named controlled over 50 per cent of plate
business lo — 630.
Huston estimated anywhere from 75 to 90 per cent of
the steel plate production of the country was in-
cluded ii— 688.
probably included over 75 per c —
plate production
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4594 UNITED STATES STEEL CORPOEATIOIT.
STEEL PLATE ASSOCIATION— Continued.
percentage was ordered in accordance with the pre-
vious month's or year's results, or output 11 — 673.
provided that Glasgow Co. should not exceed a cer-
tain tonnage, and had no percentage or bonus or
penalty provision 11 — 667.
Lukens Co. did not begin rendering statements to
Temple before the agreeraonts were burned 10 — 589.
Lukens Co. made monthly statements under oath,
which were correct statements of what they had
shipped. The reports were made to Temple to
conform to the percentage of tonnage 10 — 585.
Temple furnished to Lukens Co. copies of statements
made by other concerns. Van Ormer does not
know whether statements of all the concerns were
given iO— 586.
Plate Associatian dissolved 1904 24—1710.
after dissolution of association li jm 1904, reports were
furnished to and including October, 1906 11-Q75.
agreement of 1900 was terminated 1906 10—629.
reports monthly were made up to October, 1906, first
by Temple and then by Langham, who continued
after Temple dropped out 11 — 669.
later reports were merely for information, and no
penalty was enforced for exceeding allotment 11 — 669-670.
Phices —
Van Ormer says there probably was a minimum
price, which did not fix the market price.
Lukens Co. in ^ood times have no need to go
beyond the minimum price 10 — 662.
the arrangement or agreement as to minimum
price terminated sometime late in 1905 or early
in 1906 iO— 623.
prices fixed by monthly meetings were either fur-
nished by the secretary or obtained at the meet-
ings ii— 673.
agreement B, marked "Prices, "was destroyed
with first agreement 11 — 661.
STEUCTUBAL MATEBIAL—
priDcipal makers were Xew Jersey I&SCO., Passaic
Rolling Mills Co., Phoenix Iron Co., Pencoyd Iron
Works, Carnegie Steel Co., Jones & Laughlin 6 — 320.
depends on price of pig iron and labor 6 — 327.
price calculated at Pittsburgh 1\ cents a pound and
freight \ to Philadelphia; price at Philadelphia 1^
cents a pound, and same way for Chicago 6 — 328.
price always varies for each contract 6 — 335.
2,500,000 tons used annually in United States 18 — 1353.
"price cutting in both structural and plates" admit-
ted by some eastern makers; and CSCO. has been
getting "our relative proportion of the tonnage
placed in each line" by hard work; and "with this
price cutting uncovered now we believe it will
ceaFe" CSCO. Dir.,
Sept. 21,' 1908.
Chicago is charged the Pittsburgh rate plus the freight
from Pittsburgh 77 1260.
rate 11.40 Pittsbtirgh to Chicago per 100 pounds and
$28 per ton ;7 — 1 ^fifUl 9fil
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4596 UNITED STATES STEEL COEPOEATION.
TAEIPF— Continued.
and Gary says the United States Steel Corporation
does not need a tariff, although competitors might
(except upon some articles like tin plate) T. H., vol. 2, 1792-W8-W.
and we are exporting to other countries and not im-
porting except a very small amount, which may be
specialties T. H., vol.2, 1797.
and foreign cost has risen as it has risen here T. H., vol. 2, 1798.
while English cost is increasing T. H. , vol. 2, 1809.
and English ore is getting scarce T. H., vol. 2, 1809, 1811.
and has less percentage of iron T. H., vol. 2, 1809.
and English coal is getting dearer as it gets deeper. . T. H., vol. 2, 1809.
and Germany has great increase of population and
increased home needs T. H., vol. 2, 1809.
labor cost is higher in Great Britain because they use
more men for the reason they have not continuous
rolling as in United States T. H., vol. 2, 1842-184*.
high profits of Steel Corporation of about $15.50 per
ton indicated that foreign sellers could not compete. T. II . , vol. 2, 1871 .
sole effect is to prevent extension of trade by German
manufacturers, in which way they would be en-
abled to get improved machinery and with tlieir
cheaper labor ultimately undersell the production
of this country 18 — 1351 .
they could not operate this improved machinery with
their present demand, at 500 a day they could not
operate 3,000 a day and with a plant for 3,000 a day
they could not operate for 500 a day 18 — 1352.
if tariff were removed, and German makers sold here
and undersold the steel company, they would
have to reduce costs, which would include labor in
all branches 18—1352
Schwab says the labor cost is about the same in
United States as in England T. II., vol. 2, ltJ66.
high tariff desired to give manufacturer more profit.. 18 — 1345.
production of steel as well as all other things has
increased in United States 18 — 1346.
in United States steel production under protective
tariff has increased twenty-five fold, while in
Germany, under a protective tariff, it has increased
fourfold, and in England under free trade it has
remained stationary is — 1346.
this increase (Carnegie says) shows that protective
policy is vindicated ; but does not justify permanent
protection T. H,, vol. 2, 1821.
reduction of 50 per cent on steel schedules, although
harm expected to independents may cause it not to
be so ^eat. Mr. Bope said " It is ray opinion that
there is really more sentiment than actual loss or
gain involved in this matter, and that if we can get
it out of the way and have it settled for a term of
years, nothing will interfere with the tremendous
swing in business that is evident for some consider-
able time" CSCU. Uu-.,
Dec. 7, 1908.
"all that is wanted is such reductions as will keep the
question of the tariff out of the way for several
years, because it is believed that once we get fairly
started in this buying movement it is going to last
sevei-al years, and we do not want such influence as
another revision of the tariff to c-^" "^ a,,^^^ fui^
time"
^
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4598 UNITED STATES STEEL CORPORATION.
TERMINAL CHABGES AND ALLOWANCES— Contd.
charges for switching and movements not recommend-
ed for reason (1) IJnion B. R. do all yard switching
free of cost for Homestead, Duquesne, Thomson,
Cajrie Works; (2) Union R. R. receives a revenue
from its terminal rate with other roads; (3) "Be-
cause I do not believe any investigation that might
be made would develop the fact that the Union
R. R. was doing anything irregular in omitting to
charge for these particular movements " CSGO. Dir.,
Sept. 16, 1902.
opinion of attorneys MacVeagh, Kellogg, Reed, Sev-
erance, and Knapp upon. Local oflBcials requested
to take up and dispose of the questions in accord-
ance with the opinion recommended USSC. Fin. Com.,
May 3, 1910.
Timber —
19,654 acres in Minnesota in townships 57, 58, and
59 north, ranges 7, 8, 9, and 10 west, at $300,000
recommended USSC. Fin. Com.,
Feb. 24, 1910.
international agreement not to exceed certain
exports from United States, etc. (see AMS&
TPCO. Tin Plate & Amer. Can Co.) T. H., vol. 2, p. 1839.
TBADE CONDITIONS (including subjects of General
application and Chronological data) —
(See also Tennessee CIRRCO. Syndicate and USSC.
Bond conversion.)
General —
apprehension of trouble, and Mr. Carnegie's an-
nouncement that he would build a tube works
and a railroad from Pittsburgh to New York,
etc. "That was one of the governing motives,
I think, on the part of Mr. Morgan" "to quiet
that apprehension and remove the doubt that
the Steel Corporation was formed." (Gary).. T. H., vol. 2, p. 1755.
corporation whose property is worth 1500,000,000
or $600,000,000, if it issued bonds for
$600,000,000 the stock would not have much
intrinsic value, and second - mortgage bonds
would hold the equity, but there would not be
very much difference between the second-
mortgage bonds and the stock; and if the first-
mortgage bonds equaled the real value of the
stock, the second-mortgage bonds would not
have any intrinsic value 16 — 1113.
data of consumption of subcompanies' products
used to advice of location of new plants Gen. Sal. Man. Min.,
Oct. 23, 1907.
when steel business is good, the railroads must
have done good business 75—911.
when demand was little more than capacity
prices were very high, but a reduction of 20 per
cent in demand would cause great reduction. . S4 — 1713.
if demand was 110 and production 100, the price
could be doubled ; but if demand fell to 90, the
price would be very much cut, and on account
of desire to run furnaces full, orders would be
booked away ahead at any price 24 — 1714.
20 per cent profit was considered sufficient by
large concerns ^4 — 1715.
fewer failures have occurred since the organiza-
tion of the USSC. in the steiiLtr^rLs oa — i t;7i
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4600 UNITED STATES STEEL CORPOEATION.
TBADE CONDITIONS— Continued.
Chronological — Continued.
steel industry can not be prosperous unless whole
country is IS — 911.
panic causes, notwithstanding other prosperoxis
conditions, stated by Perkins «0— 1477, 1478.
Hanna could not answer as to what reason there
was why a deposit of $6,000,000 of cash would
not have served the same purpose as the ex-
change of the USSC. bonds for the TCI. stock. . 75—914.
Hanna says that the aid that came from the Gov-
ernment, through the Secretary of the Treasury,
Mr. Cortelyou, proved totally inadequate to
meet the situation in the panic in Oct., 1907. . 13 — 885.
1907, New York City was about to fail, according
to Perkins, and therefore $30,000,000 of 6 per
cent warrants were bought by Morgan et al. . . 20 — 1480.
trust companies whose practices were disap-
proved of by the banks and other trust com-
panies were first to fail ;?2 — 1525.
trust companies that had practices disapproved of
by other trust companies and banks, and the
disposition of the depositors who withdrew
money, caused failure — particularly Heinze,
Morse, and Thomas people failed S2 — 1525.
Heinze, Morse, and Thomas people failed Oct. 19
or 20 «— 1526.
Heinze, Thomas, and Morse banks had failed on
Oct. 19 or 20 27—1503.
Oct. 19 or 20, 1907. the Morse-Heinze-Thomas
banks tailed 20—1471.
Morse and Heinze banks had been eliminated
from the situation SO — 1471.
Knickerbocker Trust Co. closed Oct. 22 20—1472.
Perkins says people that had opportunity of being
familiar with investments criticized certain
trust companies for the business they were
doing; the Trust Co. of America on Oct. 21 or 22. 27—1501, 1502.
clearing house rendered statement to the effect
that certain trust companies had been found
solvent and would be helped SO — 1471.
clearing-house committee stated that they would
render assistance to these banks to meet their
deposits on Oct. 20, and on Monday, Oct. 21,
the National Bank of Commerce announced it
would act as clearing-house agent for Knicker-
bocker Trust Co 20—1471-1472.
in 1907, 3 concerns were involved (Perkins), i. e.,
Trust Co. of America, Lincoln Trust Co., and
Moore & Schley 22—1519.
bankers' conference was to assist Trust Co. of
America and did lend them money upon
security 27 — 1505.
Government loaned $10,000,000 to banks, and
they loaned it to Trust Co. of America on
security furnished by strong trust companies. . 27 — 1505.
Trust Co. of America was under discussion in
bankers' conference with Cortelyou at Man-
hattan Hotel Oct. 22 27—1508.
fact that Trust Co. of America held $500,000 TCI.
was a fleabite, Perkins says
>^
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4602 UNITED STATES STEEL COEPOEATION.
TRADE CONDITIONS— Continued.
Chhonological — Continued.
the exchange of securities that were worth on the
market less than par for TCI. stock did a great
deal to correct the conditions existing, in the
judgment of L. C. Hanna IS — 885.
financial situation was steadied by willingness
of banks to take USSC. bonds as a substitute
for TCI. There was no market for TCI. and
sale of 12 shares would have broke the market
10 points and sale of 5,000 shares would have
doubled that number of points IS — 909.
4 per cent dividends, as paid by TCI., consid-
ered too low 15 — 995.
stocks that went down in the panic were of more
value, because they were current and were
traded in, while TCI. was not sold or traded in,
and its price was held up 25 — 1619.
stocks that do not fluctuate in panic are either
very good or are stocks for which there is no
market 25—1623.
panic affected price of USSC. securities and even
affected United States Government bonds and
all securities; and Hanna says that he thinks
TCI. stock suffered materially less than many
other stocks, taking the price at which they sold
TCI. as a basis. USSC. second-mortgage bonds
were bought at low prices during the panic,
but there was not a cash market for any great
amount. TCI. stock was no exception to the
rule, so far as not having any market during the
panic .?5— 913.
quotations of various stocks in 1907 2S — 1615.
1907 to date—
first dinner by Gary, Nov. 20, 1907, and panic
of 1907 began in October and ran from about
Nov. 1 untU about Nov. 7 7—373.
political situation "is going to settle itself
reasonably quick, if we can get the mills in
operation, for this is necessary " CSCO. Dir.,
July 13, 1903.
political situation will be helped "if it is true,
as recorded in the mining papers, and prepa-
rations have been made and the President
has directed that contracts be entered into
immediately covering all supplies needed by
the Government, which will mean a large
number of contracts and amount to some-
thiug like $750,000,000" CSCO. Dir.,
July 13, 1903.
"the interests of the country demand hie (i. e.,
Taft's) election; and if tariff is to be revised,
it had better be done by Republican than by
Democratic Party" CSCO. Dir.
Oct. 12, 1908.
only one actual case of busiaess being held up
contingent upon Taft's election. Mr. Baird,
of Tennessee, said 10,000 tons of pig iron were
ordered to be shipped in the event of Taft's
election, otherwise the order to be canceled. . CSCO. Dir.,
Oct. 25, 1908.
report of president of USSC. and ingot caoacitv
of country
UNITED STATES STEEL COEPOBATION. 4603
TBANSPOETATION—
Divided and subclassified —
1. General
2. Districts
3. Roads
4. Tonnage
5. Mileage
6. Rates
7. Costs
8 . Profits
9. Foreign and miscellaneous
(See also Railroads, Costs, Ore, etc.)
General —
transportation of ore, methods, etc 3 — 86.
table of statistics of the American iron trade for
1910 showing ore shipments and production of
different grades of iron and steel 7 — 417-418.
freight-rate tables of "the iron ores of Lake Supe-
rior, compiled by Crowell & Murray, Cleveland,
Ohio, published by Pen ton Publishing Co.,
Cleveland, 1911" 7—378-379-380-381.
USSC. mines its own ore and pays freight to road
that carries it 19 — 1413.
larger the unit the cheaper transportation 1 — 36.
Carnegie's article on rates and rebates was a com-
gamon to one upon tariff in Century Magazine,
December, 1908 T. H., vol. 2, 1781,1766.
one-third coat of a ton of steel is absorbed in trans-
portation i5— 1296.
"Of course, ownership of those railroads is of de-
cided advantage and value, first, because there
is some profit in carrying the freight which is
offered, and because it enables us to make de-
liveries which are satisfactory." (Gary) 3 — 111.
routing control over shipments made necessary to
secure results from railroads in other directions . Gen. Man. Sal. Min.,
Dec, 1901.
CSCO. always insisted upon right to route
material CSCO. Dir.,
Jan. 3, 1911.
customer controls routing (Gary thinks) 5 — 283.
transportation company should not have interest
in commodities it carries 6 — 331.
control of American Steamship Co. of New Jersey
to be obtained to control ore-transportation
faciUties ASWCO. Min. Ex. Com.,
Sept. 26, 1900.
one of three roads carry all ore in Lake Superior
district: Duluth, Missabe & Co.; Duluth &
Iron Range, owned by USS. corporation; Min-
nesota Eastern, owned by Great Northern 1 — ^^.
before being taken into the USS. corporation the
several steamship and railroad companies were
competing carriers (i. e., American Steamship
Co., owned by Frick, Oliver & Carnegie, and
the Elgin, Joliet & Eastern R. R., Chicago,
Lake Shore & Eastern R. R. and Union R. R.,
and Duluth & Iron Range R. R.)
Before formation of USSC, mining companies
owned I. R. & N. and D. I. R., and Hill road
not built 5—111.
4604 UNITED STATES STEEL COEPOEATIOK.
TEANSPOBTATION— Continued.
Gbnbeal — Continued.
since purchaBe of D. M. N. and D. I. R. by USSC.
no changes in ore rates have been made S — 111.
independents have lower rate than USSC 1 — 56.
control of D. M. N. and D. I. R. is of advantage
because it gives prompt and enables satisfac-
tory deliveries S — 111.
independent miners in Minnesota have to ship
over USSC. road or Hill road 5—110.
very large proportion of independents' ore must
be shipped over USSC. R. R 5—232.
Corrigan, McKinney & Co., Cleveland, are inde-
pendent shippers over Duluth railroads 5 — 236.
independent shippers over Duluth roads 5 — 236.
Republic Co. ships over USSC. roads and Hill
roads ;7— 1240.
M. A. Hanna & Co. ship ore over USSC. roads, and
L. C. Hanna never heard of any complaint as to
rates i5— 392.
Republic is dependent on USSC. and Hill roads
for ore from Lake Superior district 17 — 1270.
little continuity of operation could be had if a
steel plant were to depend upon the intermit-
tent service of an outside railroad, which would
come only when convenient. (Topping speak-
ing of need of owning railroad) 17 — 1235.
Rebates, allowances, etc.
Terminal allowances investigated by ICC 5—119-20.
ASWCO. leased land to Pittsburg & 0. V. Ry. in
consideration of agreement to do yard switch-
ing and general railroad service free of cost ASWC. Dir.,
Apr. 16, 1906.
same lease with P. & 0. V. Ry. at Allegheny
same lease with W. & M. V. Ry. at Waukegan. . .
same lease with Northern Liberties Ry. at Shoen-
berger
same lease with N. & S. S. Ry. at Cleveland
AMBCONJ. contracts with B. & 0., E.J.E., LS.,
& M.S. Ry AMBCONJ. Dir.,
Feb. 21, 1911.
switching charges to be absorbed by USSC Gen. Sal. Man. Min.
Mar. 20, 1907.
leasing plan to give lower charges switching to
parent company by railroads instanced by
Birmingham Southern R. R. and Tennessee
C.I. & R. R. Co TCI. Ex. Com.,
May 22, 1907.
Union Railroad has agreement with CSCO.
whereby the CSCO. charges " the Union for the
right of way in and through the various works
and yards " and agreement proposed to charge
CSCO. for so much per annum for the use of
tracks, instead of car movements might conflict
with it. Some of the movements are not re-
ported and not charged for CSCO. Dir.,
rebates and commissions on freight, allowances Sept. 2, 1902.
are provided for by agreement to go into treas-
ury of Frick Co., Chicago & Connellsville
Coke Co., Joliet Steel Co., and Union Steel Co.
of Chicago, under agreement
UNITED STATES STEEL COEPOEATION. 4605
TBANSPOETATION— Continued.
Rebates, allowances, etc. — Continued.
USSC. rates from Lake to Valley discussed, and
Converse urged high rate, "if they would give
us some definite and distinct rebate or prefer-
ence in some other way"; the president sug-
gested that USSC. ought to "consent to any
ore rate that they may name for the benefit of
the railroads, provided they will give our com-
panies equivalent values in the shipment of
anyproduct" USSC. Ex. Com.,
Apr. 10, 1901.
Union R. R. to be charged 5 per cent per annum
on the investment in 1,000 cars to be credited to
B. & L. E. interest or redemption funds, and a
like amount for renewal or redemption pur-
poses CSCO. Du:.,
June 17, 1902.
lease of the Chicago L. S. & E. R. R. to the Elgin,
Joliet & E. R. R. considered advisable by the
legal department and referred to the chairman
with power USSC. Pin. Com.,
Apr. 27, 1909.
(Note. — The consideration for this lease may well
include special compensation to the Elgin,
L. & E.R.R., especially as that company is
made to guarantee $9,000,000 of bonds of the
C.L.S.&E.R.R. See minutes meeting June 22,
1909.)
Wabash R.R. USSC. allowed use of track and
cost of maintenance divided USSC. Fin. Com.,
July 18, 1905.
(Note. — Considerations given to USSC.)
60 cents paid by Carnegie Co. notwithstanding
$1 rate on Duluth & Iron Range R. R Carnegie Co. Dir.,
T^ , , , X T. „ T, . , „ June 6, 1900.
Duluth & Iron Range R.R. contract with Car-
negie Co. provides for as low a rate to Carnegie
as anybody else, and if rate is increased, allow-
ance of Carnegie Co. is increased Carnegie Co. Dir.,
^ . ^ , , „„ ■ June 6, 1900.
Carnegie Co. has ore rate of 60 cents, pajnng cur-
rently $1, but have not been able to collect the
money, for the railroad feared rebating. Judge
Gary thinks that if Carnegie Co. makes contract
as now proposed, they can find a way to pay us
the amount due us, which approximates
$200,000, and make the further payments or
rebates required. Contract to be made for 60-
cent rate for 40 years with Federal Steel Co.
(Copy of these minutes were marked "Copy to
A. C., Skibo, and H. P., London, June 8, 1900.). Carnegie Co. Dir.,
June 6, 1900.
Carnegie Co contract with Federal Steel Co. for
allowances on freight for ore from Vermilion
Range, etc Carnegie Co. Dir.,
July 9, 1900.
' ' the present general freight rate is $1 . We have had
an arrangement with the railroad for some time to
carry ore at the rate of 60 cents , paying currently,
however, f 1 per ton, but we have not been able
to collect our money, for the reason that there
was no fixed method of payment and the rail-
road feared rebating. Judge Gary thinks that
if we make a contract as now proposed they can
ue us, which
^ the further
opy to A. C,
^^.^^^^^^^ 1900.)
4606 UNITED STATES STEEL COEPOEATION.
TRANSPOBTATION— Continued.
Rebates, allowances, etc. — Continued.
Rebating agreement between CSCO. and Oliver-
Snyder Steel Co. first party and Federal Steel
Co. dated July 9, 1900, to run for period of 40
years, from Jan. 1, 1900, whereby first party
agrees to deliver for transportation all iron
mined in Vermilion Range, etc., "and to pay
Buch railroad a tariff rate therefor, " etc . ; second
party (Federal Steel Co.) agrees to deliver,
etc., said ore; second party to have right to
route said ore; and agree to pay to the parties
of the first part for each and every gross ton of
iron ore "while the tariff rate on such ore for
such transportation remains at $1 per gross
ton the following sums: "40 cents a ton on
1,500,000 tons shipped, 35 cents a ton on
1,500,000 tons shipped, one-half of 1 per cent to
be deducted by second, etc., party, five-
sixths to CSCO." one-sixth to 0. & P.S.Co."
Schwab said this fixed rate at 60 cents. Reso-
lution to execute Carnegie;Co4Dir.,
June 6 and July 9, 1900.
Gary sent letters to presidents in 1905, stating
that DO rebates should be received 5 — 248.
Complaints and proceedings —
40 per cent estimated as the amoimt of steel con-
sumed by railroads, at one time, of which
Republic of late years has got 10 per cent,
and steel makers would be reluctant to attack
railroad rates for that reason, unless because
of inability to continue operation on a profit-
able basis i7— 1247.
the fact that all manufacturers were on "an even
keel" as to paying freight rates has deterred
making any attempt to reduce the freight rates;
but where a manufacturer, as the USSC. owns
the railroad, they could pay 80 cents and take
down half of that in profit, and when all the
profits through the combination are mingled
the high freight rates would not make any
difference. But independent companies can
not recoup for high freight rates by profit in
running the railroads unless they buy a rail-
road 17—1246, 1247.
railroads published reports show very high profit
in carrying ore, coal, and coke, and as there is
very small profit for miner and manufacturer,
there should be a division of the railroads'
profit with these, or otherwise materials will be
mined in other districts and the particular
railroads making high charges will be cosuffer-
ers i7— 1251.
if prices should drop SI or $2 a ton, it would
probably lead to an attack on the present
freight rates 77—1247.
complaint against Minnesota roads' rates in 1910. . S — 111.
suit before Minnesota railway commission for
reduction of rates of D. I. R. defended on the
ground that the ore shipments were interstate. . 7 — 383-384, 385.
ca£e of petition now pending before I. C. 0. to
revise rates to Pittsburgh on coal and coke,
and this would naturally involve the ore 17 — 124.';-194R
UNITED STATES STEEL COEPOEATIOX. 4607
TEANSPOETATION— Continued .
Complaints and proceedings— Continued .
in 15 years there has been a reduction on Michi-
gan ranges since building of L. S. & I. while
on the Minnesota ranges there has not been
any reduction 17 — 1252,
complaint is a^gainst entire situation, not against
unfair practice against any particular compet-
itor J7— 1270.
Republic traflSc manager considers all rates too
high in northern districts stated in Republic
statement n — 1241-1242
Topping, of Republic Co., says considering the
facts that the rates have been unchanged for
many years, while the tonnage cairied and
business has increased enormously, and the
profit statements of the roads show high profits,
show that the rates are too high for the service
rendered .Z7— 1243.
cost to railroads in Northwest should not be
higher than cost to railroads in South :?7— 1244.
at 12^ per cent for 25-mile haul, L, & N. shows
a very profitable business. But they have
other shipments to depend on, such as lumber,
coal, etc 17 — 1244.
charges against USSC. local railroad similar to
charge against Pennsylvania R. R. as to divi-
sion of charges with dock company 5 — 227.
SuPBEioR DISTRICT RATES — Continued.
ore over Duluth & Iron Range and Duluth, Mis-
sabe & Northern, pays 80 cents per ton 1 — ^22.
charge about 1 cent a ton a mile 1 — 122.
only D. M. N. and D. I. R. and the Hill road
carry ore from the Mesabi and Vermilion ranges
and other ranges in that region. D. M. N. and
D. I. R. charge 80 cents a ton and the Hill road
receives 80 cents a ton under the lease 9 — 541.
Smith's report states that the Superior ore roads
make an exorbitant profit 9 — 541-542.
average ton-mile rate is 3 or 4 mills; on the ore
roads it is 10 mills 9 — 542.
rate to Duluth is 90 cents, but no ore is sent to
Duluth; rate to Two Harbors is 1.3 cents per
ton-mile, while the rate to Duluth is only 0.935
per ton-mile 8 — 440.
rate to Two Harbors includes dock charges;
Duluth rate does not include dock charges,
because there are no docks 8 — 443.
rates over Great Northern and D. I. R. compared. 8 — 444^45.
rates per ton are similar, but the rates per ton-
mile are different 8 — 445-446.
80-cent or 90-cent rate to Lakes recommended.
President thinks "the rate should not be a very
low one" USSC. Ex. Com.,
Apr. 22, 1901.
D. M. N. and D. I. R. were ordered by Minnesota
railroad commission to reduce their rates of
80 cents, 90 cents, and $1 per ton on ore to 60,
70 and 80 cents, but upon objection it was held
that the shipments were interstate almost
entirely, and the Minnesota commission had no
" ' ' '^idzi^^gients, but aa
commission
7— 383-384-385-386-38'7--
4608 UNITED STATES STEEL COEPOEATION.
TBANSPOETATION— Continued.
SuPERiOK DiSTHiCT RATES — Continued.
rates on ilesabe and Vermilion Ranges roads are
too high because the present profits in business
will not stand those transportation charges and
leave a fair profit. This is because Pittsburgh
has not maintained its supremacy because
encroached upon by Chicago, eastern, and
southern districts -?'' — 1250.
Minnesota roads' rates have not been reduced
since 1892, but the business carried has in-
creased at a much greater rate than on the
roads carrying the Marquette, Gogebic &
Menominee ore, and a large traffic within the
capacity can be handled at a less cost per unit
than a small trafiic 7 — 417.
transportation Great Northern road charges the
same rate for carrying ore that the USSC.
charges T. H., vol. 2, p. 1701-1702.
mill road charged the same rates as the D. M. N.
and D. I. R., when it began operations 7 — 381.
rates, tables of, and mileage tables of, on Great
Northern and Duluth & Iron Range and Duluth
M. & ? 8^55.
rates, rates per ton-mile, and mileage tables on
Great Northern, Duluth & I. R., Duluth &
M. N. between Duluth and AUonez docks and
Minnesota points, and between Duluth and Two
Harbors and Minnesota points, respectively. . . 8 — i56-457.
rates Kelly Lake to Allonez docks is 0.84 of a cent
for 109.4 miles on Great Northern, while on
Duluth & I . R. rate from Tower Junction, a dis-
tance of 96 miles to Lake, is .$1.30. It is 4
miles per ton-mile higher over the D. & I. R.
than over the Great Northern. Gayley did
not understand this 8 — 439-440.
(Note. — Mr. Young, pp. 439-440, suggests that
rate from Tower is only 90 cents. The ques-
tion, however, referred to the I. C. C. talDles.
-See p. 439, 440, and 456, I. C. C. tables.)
Tower Junction is Two Harbors on Duluth &
0. R. R. R., no independents ship ore 8 — 440.
Virginia, Minn., independents ship from, to Lake
Superior 8 — 441.
Virginia to Two Harbors is 70 miles 8 — 441.
Virginia to Two Harbors, U. S. S. Co. operates
one branch on Duluth and Iron Range R. R.
with rate to Duluth of 0.93 cent per ton-mile
and rate from Virginia to Two Harbors of 1.14
cents S-441, 442.
rate to Two Harbors includes dock charges 8 — 443.
ore freight rates on all roads include dock charges . 8 — 443 .
ore from Virginia to Two Harbors goes over
Duluth, Missabe & Northern, or Hill road
(USSC. 'sore) S— 443.
Great Northern has connection at Virginia City
and dock is at Allouez 8 — 444.
Virginia to Allouez on Great Northern, about 25
miles from Two Harbors, rate 8.15 mills; and
D. & I. R. rate Virginia to Two Harbors is 1.14
mills 8 Hi 445.
(Gayley says the rate is the ; ... -
longer or shorter distance at
ton-mile.)
UNITED STATES STEEL, COBPOEATION. 4609
TEANSPOETATION— Continued.
Superior district rates — Continued.
Oonneant — P. & L. E. does not run to — P. B. &
L. E. rung there 8 — 447.
Conneant to Clairton 158.6 miles 8 — 447.
rate 1.3 cents per ton-mile on D. & I. R. and 0.61
cent per ton-mile on P. & L. E. (see p. 457),
accounted for by Gayley by difference in
service, one road just hauling cars and the
other handling storing, etc 8 — 448.
I. C. 0. table of rates to Duluth and Allouez
Docks, Two Harbors Docks, Ashland, Wis.;
and froni Cleveland, Ohio, and Ashtabula Har-
bor, Ohio, to Pittsburgh; and from Conneaut
Harbor, Ohio, to Bessemer, Clairton, Cochran,
McKeesport, Munhall, and Rankin, Pa.; and
from Ellis, Hibbing, Kelly Lake, Mahoning,
and Virginia, Minn., to Duluth and Allouez
Docks; and from Ely, Eveleth, Tower Junc-
tion and Virginia, Minn., to Duluth and Two
Harbors ore docks; and from Colerain and
Eveleth to Duluth; and from Hibbing and
Virginia to Ashland, Wis.; and from Cleve-
land, Ohio, and Ashtabula Harbor, Ohio; and
from Conneaut Harbor, Ohio, to Bessemer,
Clairton, Cochran, McKeesport, Munhall, and
Rankin, Pa 5-^55-457 .
on Michigan ranges there has been in 15 years
very large reductions in rates, while in Minne-
sota roads there has not been any reduction
(Young) i7— 1252.
73 cents rail, 72 cents lake=J1.45 T. H., vol. 2, 1681.
Chicago at, ore is taken right off docks to mills. . T. H., vol. 2, 1682.
Superior district. Mileage —
Lake Superior ore hauled about 1,000 miles to
Pittsburgh — distance for 80 cents is 70-100
miles lS—%4.1 .
Superior district, tonnage —
Great Northern road carried about 10,000,000 tons
from Mesabi Range in 1910. D. I. R. carried
1,300,000 tons from the Vermilion Range in
1910 7—406.
D. M. N. and D. I. R. carried about 19,400,000
from Mesabi Range in 1910 7 — 406.
one engine can haul about 30 cars from the
Mesabi Range to the lake, each car holding
about 50 tons 8 — 438
Duluth News-Tribune of June 11, 1911, stated
that the big Mallet engines can haul a train of
1,255 loaded ore cars without any trouble, and
200 empty cars 5^38.
statement of Duluth News-Tribune that average
runs are about 1,600 cars a day loaded, and
about the same number shipped from Hibbing
or Kelly Lake, and about 56 cars a day from
Hibbing on the D. M. N., and about 3 a day
on the Chisholm Branch, and 14 trains a day
on the Coleraine Branch 8 — 438-439
ore cars are about 36 feet long, and a train of 100
would be 3,600 feet, or about two-thirds of a
mile 5-^46.
MtnTTTOAM nT.«^TRTr,T
The North
md Atlantic,
_ i7— 1242.
4610 UNITED STATES STEEL COEPOHATION.
TRANSPORTATION— Continued.
Michigan district — Continued .
Michigan railroads are independent railroads 1 — 56.
Marquette railroads are independent railroads. . . 1 — 56.
Menominee railroads are independent railroads. . 1 — 56.
Gogebic railroads are independent railroads 1 — 56.
Menominee Range ore is carried over the Chicago
North Western to the lakes at Escanaba 7—394.
Gogebic Range ore reaches the lakes at Ashland
over the Chicago North Western and the Wis-
consin Central 7 — 394.
(1) shipping rate to Marquette on South Shore,
30 or 40 cents i— 56.
Negaunee shipping rate to Marquette on South
Shore, 30 or 40 cents
lake freight at 75 cents can be obtained by hold-
ing on, but decided to get 85 cents Duluth,
80 cents Marquette, 70 cents Escanaba ESSC. Ex. Com.
Apr. 21,1903.
rates on Chicago North Western from the Gogebic
Range, 40 cents for 40 miles or 1 cent a mile;
Marquette Range, Lake Superior to Ishpeming,
20 miles for 30 cents or 1.6 per mile; Duluth
and South Shore road from Marquette Range,
distance 14 miles, rate 25 cents (or 32 cents);
Philadelphia to Pottstown, 40 miles, rate 45
cents; Philadelphia and Reading road from
Philadelphia to Bethlehem, distance 55 miles,
rate 60 cents on D. N. between Hibbing and
Duluth, distance 84 miles, rate on coal 75
cents and on ore 80 cents, but the coal goes as
net tons and the ore as gross tons, making a
comparative rate of 71^ cents for ore 7 — 416.
USSC. roads' rates have remained unchanged
since 1892, but the rates on the Marquette
Range, the Menominee and Gogebic Ranges
have been reduced 7 — 417.
no reason for 25-cent rate for 12-mile haul, in
Michigan, or Wisconsin district, while in
South there is only half that rate (Topping) . . . 17 — 1253 .
labor cost on railroads about the same in North
as in the South
northern roads have lumber and other general
business on account of building up of the section,
besides merely hauling ore, and do not shut
down when ore season closes, but have ex-
pense in regard to snow n — 1253.
Republic 's road in South handles only ore 17 — 1253.
Pittsburgh district —
rates for Pittsburgh are too high because Pitts-
burgh has no longer supremacy since the Chi-
cago district and Bethlehem and Lackawanna
Cos. and eastern districts have developed, to
be any longer indifferent to rates for ores from
mines .?7— 1260.
rates on B. & L. E. from Conneaut and Erie to
Pittsburgh and Youngstown are too high in
opiuion of Topping and Republic Co 17 — 1245.
B. & L. E. merely draws the train to the works
and leaves it; but the Minnesota roads haul the
ore in stock piles according to grades and
deliver it to the docks into '^'-- '- -- J ^ - -
an extra service
UNITED STATES STEEL COBPOBATION. 4611
TEANSPORTATION— Continued.
PiTTSBUHGH DisTHiCT — Continued.
B. & L. E. carried down 338,000 tons of ore in
first 3 weeks of June, 1901, as compared with
209,000 tons last year. Total tonnage for period
was 484,000 tons, with average trainload of
1,044 tons. This is at rate of 8,000,000 tons a
year, "which is pretty good for a single-track
road." Taking some coal back CSCO. Dir.,
June 25, 1901.
$3 a ton was freight Pittsburgh to Chicago before
formation of Federal Steel Co 5 — 220.
$2.25 a ton of ore freight Mesabi to Pittsburgh. . . 8 — 437.
$1.18 rate Conneaut to Pittsburgh per ton of ore.. T. H., vol. 2, 1694.
rate to Pittsburgh from Atlantic coast is $1.60. . . 15 — 1029-1031.
rate to Bethlehem from Atlantic coast is 50 cents,
including unloading charge 15 — 1029-1031.
rates, rates per ton mile, and mileage tables on
B. & 0. R. R. and P. & L. E. R. R. between
Cleveland and Ashtabula, Ohio, and Pitts-
burgh district points , 8 — 457.
rates and mileage on B. & 0. R. R. and P. & L. E.
R. R. from Cleveland, Ohio, and Ashtabula to
Pittsburgh district points 8 — 455-456.
6HI0AGO DISTRICT — •
Chicago could have its own vessel rates from
northwestern ore mines and Pittsburgh could
get less rates from Lake Erie to Pittsburgh if
rates were reduced ^7^1261.
prior to 1890, freight rate from Ohio Valley to
Chicago was 12i cents per 100 pounds, and rate
on ore from Lake Erie ports to Valley was from
50 to 60 cents a ton, and Youngstown rate was
50 cents or lower; while rate to the Valley to-
day is 85 cents and rate from Valley to Chicago
on finished material is 18 cents 17 — 1262.
freight rates to Chicago from Connellsville dis-
trict objected to as too high on coke, and urged
that railroads increase tariff on finished prod-
ucts to Chicago market or decrease rate on coke . Ills. St. Co. Dir. ,
June 21, 1893.
structural steel rate is $1.40 Pittsburgh to Chicago
per 100 pounds and $28 per ton i7— 1260-1261.
Birmingham district —
rate in Birmingham district on iron ore within
25 miles is 12J cents per ton 15 — 981.
TCI ore, etc., hauled 5 to 80 miles 13—847.
Birmingham sells at Pittsburgh base, price add-
ing Pittsburgh freight rate Gen. Sal. Man. Min.,
Feb. 19, 1908.
Birmingham as base point suggested instead of
Pittsburgh base price Gen. Sal. Man. Min.,
June 24, 1908; Min., Sept.
16, 1908.
Water —
Lake Erie ports — Cleveland, Lorain, Ashtabula,
Conneaut, and Fairport and Chicago T. H., vol. 2, 1681.
now lake boats 610 feet and carry 20 to 30 per
cent more 1 — 36.
12 years ago lake boats were 500 feet on water
and carried 9,000 to 10,000 tons of ore i— 36.
' " — "" • a ton 7—36.
1—36.
4612 UNITED STATES STEEL CORPOEATION.
TRANSPOBTATION— Continued.
Water — Continued .
(1) shipping and Negaunee rates 32 cents, 15
miles 1 — 56.
32 cents for 15 miles is lower than 80 cents for
80 miles :?— 56.
ASWC. contract with Monongahela River Cons.
Coal & Coke Co. to transport ASWCo.'s prod-
ucts for 20 years ASWC. Dir.,
Nov. 13, 1904.
10 or more barges contracted for with Mononga-
hela Cons. C. & C. Co. to carry products of
ASWC. until 1924 on Allegheny, Monongahela,
Ohio, and Mississippi Rivers, approved ASWC. Dir.,
June 21, 1910.
average carrying cost of ore of Pittsburgh Ss. Co.,
52 J cents per ton; Mitchell fleet, 62 cents;
Wilson fleet, 60 cents U8SC. Fin. Com.,
Nov. 4, 1903.
Coke and coal —
USSC. has no transportation company to carry
coke T. H., vol. 2, pi. 701.
coke has greater bulk than ore 3 — 120.
coke on account of bulk may cost a trifle more to
haul than coal 77 — 1246.
$2.35 rate on coke, Connellsville to Chicago, Po-
cahontas to Chicago T. H., vol. 2, p. 1693.
$2.80 rate on coke in ton of pig iron T. H., vol. 2, p. 1694.
Connellsville coke hauled well under 100 miles. . IS — 847.
TjO cents a ton for coal by boat to Pittsburgh .... 19 — 1409-1410.
coke can not be carried by boat to Pittsburgh 19 — 1410.
cost of shipping ton of coal by river from Pitts-
burgh Coal Co. would be 50 cents ton from Mo-
nongahela mines lit — 1409.
coal may be shipped from Pittsburgh to New
Orleans for 54 cents ton 10 — 1409.
coke transported 77 cents less from Pocahontas via
Columbus on Erie R. R. to Illinois Steel Co.
Coke to be received by Erie R. R. at Marion,
Ohio, and carried to Hammond and delivered
to C, L. S. and E. R. R., and C, L. S. &E. R. R.
to get 65 cents from Hammond 111. St. Co. Dir ,
Dec. 17, 1897. '
Mileage general (see districts specifically) —
Pennsylvania R. R.: New York to Pittsburgh,
440.5 miles; Pittsburgh to Chicago, 468.2 miles;
New York to Chicago, 908.7 miles. B. & O.:
Pittsburgh to Chicago, 434 miles; Connellsville
to Pittsburgh, 58 miles. Coke rate: New, $2.50
per ton, about 0.005 per ton per mile; old, $2.35
per ton (for blast furnaces). Have 30-100
miles in Minnesota to haul ore i — 22 .
Rates general (see districts specifically) —
in the West they have a higher freight rate than
CSCO., so that a price of 1.50cents could not be
met in the West CSCO. Dir.,
..„.., ,. . Apr. 4, 1910.
in Birmmgham district rate is 25 cents ton for 25
miles, while in northern district rate is 35 cents
for 25 miles j7 1242.
Republic Co. is paying tribute to the extent that
rates charged exceed a fair rate considering the
cost per ton-mile -~ ■■" ■"
80-cent rate for 80-mile haul
than 25 cents for 25-mile ha
XTNITED STATES STEEL, COBPOEATION. 4613
TRANSPORT ATION— Continued .
Rates general — Continued.
freight rates from Chicago, Pittsburgh, and Bir-
mingham, respectively, to New York, Bufialo,
Mobile, New Orleans, San Francisco, on steel
products T. H., vol. 2, p. 1697.
Cost and profit general —
cost compared in 1899 with 1908 by Schwab iS— 1^24-1331.
12 cents to move cars from lake to Pittsburgh and
11 cents to move empty cars back T. H., vol. 2, p. 1840.
cheapcostonDMN. & DIE 3—119.
ore carried downhill to Lake Superior 3 — 120.
coal and coke carried back uphill 3 — 120.
coal is carried cheaper from the lake on the DIR.
and DMN., because it is a back haul, the
main tonnage going east to the lake. The cars
go back 96 per cent empty and 4 per cent
loaded with coal 7 — 410.
Traffic contract on Monroe property of Chemung
Iron Co. more than compensates for royalty on
theu-on USS. Ex. Com.,
May 12, 1903.
freight rate on ore gets no bigger 1 — 22.
profit of transportation ore averages 55J cents per
ton to USSG T. H., vol. 2, pi. 1701.
Foreign and miscellaneous —
Germany could ship to Gulf or points west of
Missouri River cheaper than could be shipped
from Pittsburgh J5— 1338 .
Germany can sell rails on Pacific coast at cheaper
transportation than from Pittsburgh 18 — 1338.
Germany can sell in New Orleans cheaper than
Pittsburgh can iS— 1338.
from Germany to New York is less than from
Pittsburgh to New York i5— 1337.
From Germany to Chicago is more than from
Pittsburgh to Chicago i5— 1337.
freight from Liverpool $1.25 to Philadelphia on
ton CSCO. Dir.,
Oct. 25, 1909.
fre^ht rates from England and Germany to New
York, Mobile, New Orleans, San Francisco,
Montreal, on steel products T. H., vol. 2, p. 1698.
Cuban ore not being rich and carrying 58 per cent
moisture, transportation is important in han-
dling it i5— 1334.
$3.25 a ton is freight from Cuba to Pittsburgh (rate
not established) 8 — 437.
$2.25 is freight from Mesabi to Pittsburgh «— 437.
export CO. is "constantly sending cargoes and are
obtaining a very satisfactory freight rate " (e. g.,
to Panama) Gen. Sal. Man. Min.,
Feb. 21, 1906.
ore shipments from Cuyuna Range, letter from
President McGonagle DMN., dated Dec. 22,
1909, to Kerr in re USSC. Fin. Com.,
Dec. 22, 1909.
car trust bonds — Carnegie offered to purchase
2,050,000 bonds at 105 and interest. President
directed that single stockholders be asked to
sav what portion thev would take before accept-
CSCO. Dir.,
Apr. 23, 1901.
4614 UNITED STATES STEEL COBPOKATIOX.
TUBES—
made by National Tube <ju. & Iii\(_!rside Works at
McKeesport (now Xatinnal) and Independent
Works at Chester, Pa., 1809. and Reading Iron
Works, Reading, Pa 6—310.
is most profitable and growing bu.=!iness ~4 — 1720.
concentration of seamless tube plants of Shelby
Tube Co, recommended at a cost of $1,200,000 L'SS(.'. Fin. Com.,
Apr. 7, 1906.
international agreement to avoid compstition T. H., ^'ol. 2, 18o!J.
WABEHOXTSES (see Jobbers)—
elimination of jobbers and establishment of ware-
house system suggested CSCO. Bii-.,
Dec. 28, 1908.
stocks to be kept in West and Pacific coast in order to
sell to former buyers from ( 'olorado Co Gen. Man. Sal. Min.,
Nov. 17, 1903.
stocks carried at Denver and Salt Lake City to meet
competition of < olorado Co Gen. Sel. Man. Min.,
Feb. 17, 1904.
establishment of, to be inve.-jligated b\' Baackes of
Wire Co., and Topping of the Sheet Co., and ^V'or-
cester of Tube Co CSCO. Dii-.,
Jan. 27, 1903.
two, to be kept in Pacific coast CSCO. Dir.,
Dec. 29, 1910.
Ridson Iron Works, San Francitcn, bought for ware-
house USSC. Fin. Com.,
Mar. 28, 1911.
Basset-Prossly warehouse to be bought by CS(!0. in
Cleveland USSC. Fin. Com.,
Apr. 11, 1911.
WALL STREET JOURNAL—
article, Dec. 12, 1908, on reasonable combination i'4 — 1775.
WASHINGTON POST—
interview with Carnegie that Gary meetings were to
maintain prices .5 — 281.
Aug. 7, 1911, contains Perkins's article containing
suggestions as to .«!ub]ectp to be invcpligated i!2 — 1566.
WIRE—
J. W. Gates, chairman executi\o committee, Illinois
Steel Co., reported "an association had been formed
which would probably control the entire production
of rods and wire in the United States, except that
of the Illinois Steel Co.," and association requested
appointment of committee to meet committee from
association to arrange sale of rods and billets of
Illinois Co. for 5 or 10 years at equitable price above
the price of pig iron 111. St. Co, Dir.,
Dec. 17, 1897.
ASWCO. to take all Illinois Steel Co.'s product or
control it 111. St. Co. Dir,,
Apr. 27, 1898.
prices of barb wire i — 25.
profits on wire products, about 10 to 15 per cent 1 — 26.
profit on galvanized woven field fence wire, 30, 40,
or 50 per cent i — 27.
75 or 85 per cent controlled by ASW 1 — 28.
Union Steel Co. was a wire plant " ""
Union Steel Co. wire plant had sm
UNITED STATES STEEL COEPOBATION. 4615
WIRE — Continued.
profit on woven wire, 40-50 per cent 1 — 51. •
one concern sells for corporation in Texas l — 52.
60-75 per cent of total consumption sold in Texas by
USSC 1-52.
WISE BOPE—
Claridge & Woodall for 12 years have sold at the prices
named in the catalogue supplied by the manufac-
turers 10 — 606.
Generally all sellers sell by the list price 10 — 607.
Wire rope is billed at the same price at which it is
sold, and the seller receives a discount 10 — 607.
Discount is about 40 and 5 lo — 609.
Claridge & Woodall followed the list price because it
is the understanding of Carlile P. Woodall that
eyerybody in the trade follows it 10 — 611.
Trenton Iron Co. gets out a printed list which is a
guide to the seller lo — 611.
Price list is followed, but discounts vary 10 — 612.
Very little profit in, so that sellers who bought from
manufacturers did not cut the price stated in the
catalogue furnished by the manufacturers 10 — 605.
All wire rope companies have the same price list 10 — 605.
WISE BOPE ASSOCIATION—
Price schedules fixed by list dated Sept. 21, 1905, for
bright rope, galvanized bright rope, galvanized guy
rope, and wire rope fittings, switch ropes, etc 10 — 565-566.
United States was divided into territories in the
Wire Rope Association 10 — 566.
Waterbury Co. out of Wire Rope Association since
Jan. 1, 1907 70—566.
Jackson was supervisor of pools of Wire Rope Associ-
ation .ZO— 566.
Red Book identified as similar to book of association,
giving names of concerns in the association and
their sales agents 10 — 564-573.
Yellow sheet with handwriting of R. H. Richman was
the agent's instructions of what was known as the
Wire Rope Association 10 — 566.
Jackson, of New York, was the supervisor 10 — 566.
Waterbury Co. made sales reports 10 — 571 .
Wire Rope Association — Baackes was member 10 — 569 .
Trenton Iron Co. listed in Red Book of Wire Rope
Association as having store in New York City 10 — 574.
Beals &, Co. represent Trenton Iron Co. in Buffalo as
listed in Red Book of Wire Rope Association 10 — 574.
Salesmen of companies in the association were in-
structed to conform to the prices fixed by the books
and papers of the association as near as possible 10 — 570.
Waterbiu-y Co. withdrew by notifying Jackson 10 — 571-572.
Pamphlet put in evidence 10 — 568.
Wire rope makers met under supervision of Jackson . 10 — 566-567.
Names of members 10 — 564
COMPANIES AND FIRMS.
4617
COMPANIES AND FIRMS.
ACiaE HAEVESTER CO.—
purchase suggested after failure of negotiations with
International Harvester Co. as outlet for products
of USSC USSC. Fin. Com.,
' Sept. 27, 1904.
owned by International Co. (Townsend report) 2S — 1646.
contract not made with Illinois Steel Co. by Inter-
national Harvester Co. and matter referred to
Perkins, Gary, Corey, Ream to purchase Acme
Co. for USSC 25—1647.
AETNA EBON & STEEL CO.—
sold out to USSC 77—1268.
Topping was president of 17 — 1268.
AGEICTJLTTIRAl COS.—
asking for lower price than $1.60 CSCO. Dir.,
Feb. 25, 1907.
"Their tonnage to-day, not figuring the International
Harvester Co. , who now make all the steel they use,
amounts to only about 300,000 tons per year, which
is insignificant compared with the total" CSCO. Dh.,
Feb. 17, 1908.
no concession made to them CSCO. Dir.,
May 27, 1907.
ALABAMA BRIDGE & IRON CO.—
to be purchased by AMBCONJ AMBCONJ. Dir.,
Jan. 17, 1901.
to be dissolved AMBCONJ. Dir.,
Sept. 20, 1901.
ALUS CHALMERS CO.—
advanced payment to, on account of contracts set
forth CSCO. Dh.,
Sept. 2, 1901.
$200,000 loaned to, on accounts receivable and bonds. USSC. ,
Sept. 17, 1907.
AMERICAN BRIDGE CO.—
capital stock to be reduced from $70,000,000, half
preferred and half common, to $10,000,000, all one
class, 100,000 shares, $100 each AMBCOXJ. ,
Mar. 15, 1910.
preferred $31,393,800, and common $30,950,000 at
time USSC. organized 2—62.
American Bridge Co. was owned by Carnegie Steel
Co. (Gates) 1—42.
plants acquired AMBCONJ. Dir.,
May 4, 1900.
list of plants, capacity, etc 6 — 325.
bought Keystone plant for $2,000,000 preferred and
$1,000,000 common stock Carnegie Co. Dir.,
Apr. 23, 1900.
4619
4620 UNITED STATES STEEL, COBPOEATION.
AMEBICAN BEIDGE CO.— Continued.
bought Keystone Bridge plant from Carnegie 6 — 317.
¥2,700,000 appropriated for plant at Gary IND. AMBCONJ. Dir.,
May 15, 1910.
Berlin Bridge Co. (works), Roberts does not think it
is now operated by Am. B. Co 6 — 327.
had capacity of 441,000 at time of formation 6 — 327.
capacity compared with independents 6 — 327.
two kinds of bridge plants — one with steel works, one
without 6 — 327.
Carnegie Co. make contract to supply 51 per cent of
materials of American Bridge Co. at more advan-
tageous terms than CSCO would sell others Carnegie Co. Dir.,
Apr. 23, 1900.
contract with Carnegie Steel Co. relating to purchase
of supplies. (Note. — This contract provides for
prevailing market prices. See Carnegie minutes
version as to lower prices.) AMBCONJ. Dh. ,
May 10, 1900.
granted special terms for goods sold to it Gen. Man. of Sales. Min.,
July, 1901.
if American Bridge Co. does not take 75 per cent of
the bridge work in the United States, then Carnegie
Co. is privileged to build a bridge plant of its own. . Carnegie Co. Dir.,
Apr. 23, 1900.
Carnegie Steel Co. to keep out of bridge business
unless AMBCONJ. fails to make 75 per cent of
bridge work in United States AMBCONJ. Dir.,
May 10, 1900.
was not a competitor of any sub. co 2 — 62.
except of small plant of Illinois Steel Co. (Gary) 2 — 62.
The American Bridge Co. of New Jersey does not go
into the different States and do business owing to
taxation. That American Bridge Co. of New York
bought its supplies from American Bridge Co. of
New Jersey, and it was merely a construction co. . USSC. Ex. Com.,
May 13, 1901.
to subscribe to a plant to be built by friendly interests
at Walkerville, Ontario USSC. Ex. Com. ,
May 13, 1901.
AMERICAN CAN CO.—
special prices should be voted if American Can Co.
can not succeed USSC. Ex. Com.,
May 9, 1901.
asked concession and $3.75 per box price was made. . USSC. Ex. Com.,
Dec. 3, 1901.
to divide its profit with American Tinplate Co. and
American Tinplate Co. to divide its profit with Can
Co. upon order of Glucose Co., which threatened
to go into business of making its cans USSC. Ex. Com.,
Apr. 17, 1902.
request for reduced rate on tin plate referred to special
committee — Corey, Gary, and Ream USSC. Fin. Com. Sup.
Ext.,
Jan. 4, 1904.
AMEBICAN CAB & FOUNDRY CO.—
its business can always be had on equal basis Gen. Man. Sal. Min.,
Dec, 1902.
surangement endeavored to be made by CSCO. to
have them close down their bars mills and buy
from CSCO ^""^ -^-•-
UNITED STATES STEEL COBPOEATION. 4621
AMEEICAN COKE CO.
contract with Puritan Coke Co. guaranteed by
ASWGO ASWCO. Min. Ex. Com,,
July 8, 1899.
bought 33° adjoining 2,000 acres of that company in
Greene County, Pa ASWCO. Min. Ex. Com.,
Dec. 28, 1899.
to take coal and coke property of Schoenberger Co ASWCO. Min. Ex. Com.,
Dec. 28, 1899.
AMEEICAN IMPEOVEMENT CO.—
50 shares of stock of , bought by AMBCONJ AMBCONJ. Dir.,
Apr. 1, 1900.
AMEEICAN EBON & STEEL ASSOCIATION—
James M. Swank, general manager 5 — 224-225.
$6,000 subscribed by USSC USSC. Fin. Com.,
Oct. 4, 1900.
figures accepted by USSC 5—224-225.
distinct from American Iron and Steel Institute 5 — 224.
price of rails, table 5 — 231.
statistics of iron trade, etc 5 — 231.
statistics of rails do not include Open Hearth rails,
because they were not made in 1900, according to
P. Roberts, jr 6—343 .
AMEEICAN lEON & STEEL INSTITUTE-
Elbert H. Gary, president «- 70.
directed by Gary «- 70.
dinner, 1908, speeches were printed S — 81 .
International Iron & Steel Association suggested S — 81.
distinct from American Iron & Steel Association S — 224.
AMEEICAN LAND CO.—
sold to ASWCO. for not exceeding .$823,667.95, or
$600,000 and debts ASWC. Dir.,
Sept. 9, 1901.
counsel say it is inadvisable for this company
(ASWCO.) to hold stock of American Land Co.,
but property such as needed is to be transferred to
ASWCO ASWCO. Dir.,
Dec, 9, 1901.
AMEEICAN MINING CO.—
$35 per share dividend Dec. 31, 1901 ASWCO. Dir.,
Dec. 9, 1901.
AM. PEOTECTIVE TABIFF LEAGUE-
$2,000 contributed fO— 1432.
$3,000 contributed 20—1433.
subscription by USSC. of $3,000 recommended USSC. Ex. Com.,
June 24, 1902.
AMEEICAN EEFEACTOEIES CO.—
asks loan of $250,000. Referred to chairman and
president with power USSC. Fin. Com.,
Sept. 27, 1910.
AMEEICAN SHEET STEEL & TINPLATE CO.—
plants purchased for $15,995,000 preferred and
$16,000,000 common stock of this company AMSHTSCO. Dir.,
Mar. 29, 1900.
bought Apollo I. & S. Co. and contract rights and
ight to maintain raihoad switches, etc AMSHTSCO. Dir.,
Mar. 29, 1900.
4622 UNITED STATES STEEL COKPOEATION.
AMERICAN SHEET STEEL & TINPLATE CO.—
Continued,
bought W. Dewees Wood Co. for $2,500,000 preferred
and $2,500,000 common stock and the guaranty
of $2,000,000 bonds of said company Am. Sht. St. Co. Dir.,
May 1, 1900.
American Sheet & Tinplate Co. formed merging this
company Am. Sht. St. Co. stock-
holders,
Mar. 31, 1903.
AMERICAN SHEET & TINPLATE CO.—
was not competitor of any subsidiary company of the
USSC. (Garysays) ;2— 62.
was maker of large percentage of tin plate at time of
organization of USSC ^— 62.
and some sheets, and therein was competitor of the
American Sheet Steel Co 2—62.
AMERICAN STEAMSHIP CO. OF NEW JERSEY—
purchase by ASWCO ASWCO. Dir.,
Oct. 29, 1900.
objection made to purchase by James Hillhouse ASWCO. Dir.,
Dec. 10, 1900.
AMERICAN STEAMSHIP CO. OF WEST VIRGINIA—
purchased American Steamship Co. of New Jersey
for 5,633 gold bonds guaranteed by ASWCONJ. . ASWCO. Stockholders'
Min.
Feb. 19, 1901.
AMERICAN STEEL HOOP CO.—
was not controlled by any of the other companies. . . 1 — 42.
made most money on skelp CSCO. Dir.,
Nov. 19, 1901.
had an agreement with the 111. St. Co. to pay them
$150,000 a year to stay out of the cotton-tie
business CSCO. Dir.,
July 30, 1901.
$3,265,286.35 earnings in 1902 CSCO. Dir.,
Jan. 27, 1903.
merged with CSCO., National Steel Co CSCO.,
Mar. 30, 1903.
AMERICAN STEEL & WIRE CO. OF ALABAMA—
incorporated by New Jersey Co. and building plants
at or near Birmingham, Ala., with capital stock
of $100,000 ASWCONJ. Dir.,
Sept. 20, 1910.
AMERICAN STEEL & WIRE CO. OF COLORADO—
organized by New Jersey Co ASWCONJ. Min. Ex.
Com.
July 24, 1899.
AMERICAN STEEL & WIRE CO. OF NEW JERSEY.—
capitalized at 890.000,000; $40,000,000 preferred i— 25
$50,000,000 common 2—63.
Each SlOO of stock of the Consolidated Steel & Wire
Co. received $175 of preferred stock, and $175 of
common stock, or $350 of new securities for every
$100 of old. Then each $100 of preferred stock of
ASWCO., Illinois, received $100 in preferred stock
and $60 in common stock of ASWCO., and each
$100 of Illinois company's common stock received
$120 common ^ stock of the new concern; Smith
states that while there may have been an addition
of assets there was a far greater ^
UNITED STATES STEEL. COEPORATIOiSr. 4623
AMERICAN STEEL & WIRE CO. OF NEW JERSEY—
Continued.
Consolidated Wire Co. would-be worth $18,000,000
if capitalization of ASWCO., New Jersey, repre-
sented nothing but original assets of the consoli-
dated compan}' plus inflation in four reorgani-
zations 9—510-511.
stock exchanged for United States corporation stock
basis 1 — 27.
stockholders received $46,800,000 preferred for $40,-
000,000 SW preferred and between $50,000,000
and $60,000,000 for ASW common 1—27.
went into USSC at comparatively lower figure than
any other concern i — 27.
controlled 75 or 85 per cent of the business at time of
acquisition by USSC :Z— 28.
controlled 85 per cent of business at time of consolida-
tion 1 — 42.
American Steel & Wire Co. of New Jersey controlled
about 77 per cent of wire rods, and 68 per cent
wire-nail business at time of organization USSC .... t — 63
had 3,700 to 4,000 stockholders 1—42.
was not a competitor of any subcompany USSC.
before organization g — 63.
not to enter into contracts for division of territory or
maintenance of prices with competitors ASWCO. Min. Ex. Com..
Nov. 27, 1899.
statement for 1900 ASWCO. Dir.,
Jan. 28, 1901.
balance sheet, 1900 Dir.,
Jan. 29, '1901.
mandamus to compel disconnection of territory from
limits of village of North Chicago ASWCO. Dir.,
Jan. 26, 1901.
notification of call for resignations of directors from
USSC " ASWCO. Dir.,
Apr. 27, 1901.
received stock of American Steamship Co. of West
Virginia, which was transferred to American
Steamship Co. of New Jersey for purchase of that
company ASWCO. Stocks. Min,,
Feb. 19,1901.
guaranteed $5,630,000 bonds of American Steamship
Co. of West Virginia, given for purchase of Ameri-
can Steamship Co. of West Virginia property, the
stock of the said American Steamship Co. of West
Virginia being transferred to the AWSCO AWSCO. Dir.,
Oct, 29, 1900.
Exported $9,000,000 between January, 1899, and Dec.
31, 1899 AWSCO Stock. Min.,
Feb. 20, 1900.
prices increased $2 a ton USSC. Ex. Com.,
Feb. 17, 1903.
borrowed $2,250,000 from USSC AWSCO. Dir. ,
July 15, 1902.
paid $107,299.70 and gave its note for $1,100,000,
guaranteed by USSC for purchase of Trov Steel
Products Co ". USSC. Fin. Com.,
Feb. 17, 1903.
plants purchased AWSCO. Dir.,
Jan. 17, 1899, to Feb. 28,
1899.
4624 UNITED STATES STEEL COBPOEATION.
AMEEICAN STEEL & WISE CO. OF NEW JERSEY—
Continued.
list of plants acquired ASWCO. Min. Ex. 'Com.,
Feb. 21, 1899.
Mar. 10, 1899.
Mar. 13, 1899.
plants absorbed and dividends paid by such plants
before dissolution, etc '. ASWCO. Dir.,
Mar. 13, 1899.
purchased the Washburn Mfg. Co., Worcester, Mass.;
The Worcester Wire Co., Cleveland Wiring Mill Co.,
American Wire Co. of Cleveland, R. B. Nail Co.,
Cincinnati Barb-Wire Fence Co., Oliver Wire Co.,
etc i— 25.
bought about 50 plants 1 — 25.
dismantled or shut down 20, or two-fifths of all 1 — 25.
12 mills closed ASWCO. Dir. ,
May 7, 1900.
closed 18 mills in one day in 1900 S — 92.
Crawfordsville, Ind., mill sold ASWCO. Min. Ex. Coin.
Jan. 27, 1900.
sale Louisville warehouse Min. Ex. Com.,
Feb. 3, 1900.
sale of Evanston, 111., plant Mia. Ex. Com.,
Mar. 6, 1900.
Findlay plant abandoned, machinery to be removed. . ASWCO. Dir. ,
Dec. 9, 1901.
San Francisco plant to be erected ASWCO. Dir.,
Dec. 9, 1901.
Folaom Street property in San Francisco bought ASWCO. Dir.,
Mar. 11, 1902.
San Francisco plant coat $200,000 ASWCO. Dir.,
Apr. 21, 1902.
8 per cent dividend on common, Mar. 31, 1905 ASWCO. Dir.,
Max. 21, 1905.
4 per cent dividend on common, Dec. 30, 1905 ASWCO. Dir.,
Dec. 19, 1905.'
3 per cent dividend on common ASWCO., Mar 3, 1906. ASWCO. Dir.,
Mar. 30, 1906.'
10 per cent dividend on common ASWCO. Dir.,
Apr. 16, 1906.'
dividend 6 per cent on common, Sept. 29, 1906 ASWCO. Dir.,
Sept. 1, 1906.'
dividend 4 per cent on common. Mar. 30, 1907 Dir.,
Maj-! 19, 1907.
dividend 5 per cent common, June 22, 1907 Dir.,
June 18, 1907.
dividend 4 per cent on common stock, Sept. 30, 1907 . . ASWCO. Dir.,
Sept. 17, 1907.
dividend 3 per cent on common, Dec. 31, 1907 Dir.,
Dec'. 17, 1907.
dividend 4 per cent common, Sept. 30, 1908 ASWCO. Dir.,
Sept. 15, 1908.
dividend 4 per cent common, Dec. 30, 1908 ASWCO. Dir.
Dec. 15, 1908.'
dividend 3 per cent on common, June 30, 1909 ASWCO. Dir.
June 15, 1909.'
dividend on common, Sept. 30, 1909 Dir.
Sept. 21, 1909.
dividend 1 per cent common, Ju^^^b^^^^bb^^^^^^^e^
UNITED STATES STEEL COEPOEATION. 4625
AMEBICAN STEEL & WIRE CO. OF NEW JERSEY—
Continued.
dividend 3 per cent common, Sept. 30, 1910 ASWCO. Dir.,
Sept. 30, 1910.
dividend 2 per cent common, Dec. 31, 1910 ASWCO. Dir.,
Dec. 20, 1910.
AMERICAN STEEL & WIRE CO. OF ILLINOIS—
was merged in American Steel & Wire Co. of New
Jersey, capitalized at $24,000,000 1—24.
AMERICAN TINPLATE CO.—
capital stock reduced from 146,325,000 to $25,000 USSO. Dir.
Sept. 26, 1905.
bought 2,985 shares of Sharon Tinplate Co TJSSC. Fin. Com.,
Feb. 3 and 10, 1903.
originally did not make steel 1 — 45.
was not competitor of subsidiary company of TJSSC. . 2 — 62.
was maker of large percentage of tinplate, at time of
organization USSC Z — 62.
and some sheets, and therein was competitor of
American Sheet Steel Co 2 — 62.
East Indies, operations in TJSSC. Ex. Com.,
June 26, 1901.
buys 8,000 tons of pig tin annually at 28J cents per
pound, which yields 14 cents profit USSC. Ex. Com.,
June 26, 1901.
Eaat Indies matter left as it stands TJSSC. Ex. Com.,
Jan. 28, 1902.
Babcock matter left to committee with power TJSSC. Ex. Com. ,
Feb. 4, 1902.
contract with American Can Co. on basis of $3.35 per
box approved TJSSC. Fin. Com.,
Jan. 12, 1904.
(Note. — ^What are directors in common for
American Tinplate Co. and American Can Oo.)
rebate circular TJSSC. Fin. Com.
Jan. 27, 1903.
ANTHONY FENCE CO., TECUMSEH, MICH.—
bought for $200,000 ASWCO. Dir.,
June 21, 1910.
APOLLO IRON & STEEL CO.—
bought by American Sheet Steel Co., and contract
rights, and right to maintain existing railroad
switches, etc AMSHTSTOO. Dir.,
Mar. 29, 1900.
ASHLAND STEEL CO.—
President J. A. Kelly said at Gary dinner that he is in
favor of maintaining prices 5 — 279.
ATLANTA COMPRESS CO.—
Harrison, President, is to dispose of stocks of 18
ginning companies using square-bale process,
which are not profitable, now held by CSCO CSCO. Dir.,
June 15, 1902.
BASIC STEEL CO.—
shut down, probably for good CSCO. Dir.,
June 24, 1907.
BELLAIBE STEEL CO.—
purchase of $150,000 of bonds at par or better, treas-
urer of TJSSC, authorized to make USSC. Fin. Com.,
May 5, 1902.
4626 UNITED STATES STEEL CORPOKATION.
BESSEMEK & LAKE ERIE R. R.—
to be organized to operate railroad and entire stock to
be owned by Carnegie Co., which can not operate
railroad directly Carnegie Co. DLr.,
Dec. 18, 1900.
PB. & LE. leased to B. & L. E. with guarantee of 6
per cent on preferred and 3 per cent on common, so
that earnings will not all go to stock, of which Car-
negie Co. owns only 5 per cent Carnegie Dir.,
Jan. 9, 1901.
338,000 tons of ore brought down in first three weeks of
June, as compared to 209,000 tons last year. Total
tonnage for this period was 484,000 tons, with aver-
age trainload of 1,044 tons. This is at rate of
8,000, 000 tons year ' ' which is pretty good for a single-
track road." Taking some coal back CSCO.,
Jan. 25, 1901.
new track about 19. Smiles, operated by Union R. R. . USSC. Ex. Com.,
Apr. 7, 1903.
BETHLEHEM STEEL CO.—
Owns Cuban ore land 5—107; 7 — 404; iS— 1343.
has about 17,000,000 tons Cuban ore 75—1028-1029.
has 500,000,000 tons of Cuban ore, or 60 or 70 per cent
of it 75—1343-1344.
does not use Superior ore 19 — 1395.
does not sell ore 18 — 1292.
never sold less than $30, for rails, and some at $55 . . . 18 — 1351.
has withdrawn from the West, because they can not
meet Illinois prices on account of the freight CSCO. Dir.,
Mar. 10, 1909.
BntMINGHAM SOUTHERN RY —
purchased by TCI TCI. Ex. Com. Min.,
July, 1906.
Birmingham Southern R. R., owned or purchased by
TCI 77—1236.
Had 110 miles of track and valuable terminals in Bir-
mingham City 17 — 1236.
Did commercial work for everybody 1 — 14.
trackage agreement with AB & RR. to pay 5 per
cent of valuation TCI. Ex. Com.,
May 22, 1907.
contract with AB & AR R TCI. Ex. Com.,
May 22, 1907.
allowance to, from A B & AR R TCI. Ex. Com.,
May 22, 1907.
plan to charge TCI. a less price per car movement
than would be charged outsiders and avoid discrim-
inative tariff by leasing yards and tracks to TCI.,
etc ". TCI . Ex. Com.,
May 22, 1907.
CALTJMET & BLUE ISLAND R. R. CO.—
merged with Chicago L. S. & Eastern Ry Ills. St. Co. Dir.,
Dec. 29, 1896.
CALTJMET COKE CO.—
one-half interest purchased by HCFCCO. owning
other one-half HCFCCO. Dir.,
Feb. 1, 1899.
CAMBRIA STEAMSHIP CO.—
subscription to stock of by CSCO. 900 shares at $100
per share, or $90,000 CSCO. Dir.,
Jan. 22, 1906.
being oi^anized by stockholders of Mahoning Ore &
Steel Co., and CSCO. is owner of 20 per cent of
Mahoning Co
UNITED STATES STEEL CORPORATION'. 4627
CAMBRIA STEEL CO.—
Own mineB in the Marquette Range 7 — 394.
Own the Republic mine 7 — 394.
has holdings on Mesabi Range 3 — 89.
Stock owned by Penn. R. R 6—330-331.
in Structural Assn 24 — 1713.
promised 75,000 tons of ore by Mather, but refused
additional quantity to make 100,000 tons by USSC. USSC. Ex. Com.
is eliminated as a factor on basis on which they have
been talking recently. (This statement is pre-
ceded by statement for record that corporation has
cut loose from policy of cooperation) CSCO. Dir.,
Feb. 22.
after date when USSC. cut loose from policy of coop-
eration, Cambria took order at $22.70 for 200 or 300
tons forging blooms from American Locomotive
Works, but afterwards refused to take more except
at $25 mill plus full freight. They wanted to
sound the market on this small lot, and when they
learned the situation, "came right up to the price
we want" (CSCO.) CSCO. Dir.,
Mar. 8, 1909.
CANADIAN BRIDGE CO.—
Stock control and directors nominated by AMBCONJ. AMBCONJ. Dir.,
May 16, 1901.
makes handsome offer to CSCO CSCO. Dir.,
May 11, 1903.
CANADIAN STEEL & WIRE CO.—
to be incorporated by Keefe, Baackes & Miller,
$200,000 capital, with 3 field fence machines at
Hamilton, Canada ASWCO. Dir.,
Dec. 9, 1901.
CARNEGIE COMPANIES—
Classified and divided —
1. Subjects generally affecting the business, without regard to sepa-
rate corporate identity
(Note . — Company in question can be ascertained from references .)
2. The Carnegie Steel Co. (Ltd.) (organized July 1, 1892, succeeding
Carnegie Bros. & Co. and Carnegie, Phipps & Co.)
3. The Carnegie Co. (organized Mar. 24, 1900. The stock of this
company was taken by the USSC. This compnay consolidated
Carnegie Steel Co. (Ltd.), the Frick Coke Co., and other com-
panies)
4. Carnegie Steel Co. (of New Jersey) (organized Mar. 27, 1903, by con-
solidation of the Carnegie Co., above named, the National Steel
Co., and the American Steel Hoop Co. This company owns
all the stock of and operates the Carnegie Steel Co. of Pennsyl-
vania, named below)
5. The Carnegie Steel Co. (of Pennsylvania) (organized May 22, 1899,
and began business Apr. 1, 1900. This company was an operat-
ing company, and was later leased to Carnegie Steel Co. of New
Jersey, above named)
CARNEGIE COMPANIES—
General —
Edgar Thomson Works made billets which were
sold to trade 1 — 368.
sold to American Bridge Co 1 — 42.
owned some share in bridge company 1 — 45
sold soft steel all over the United States 1 — 45.
1 J i- A „ — ; at — 1 TT„.^„ ri^ ^ 45
4628 TJNTTED STATES STEEL COEPOEATION.
CARNEGIE COMPANIES— Continued.
Geneeai — Continued .
makes armor plate (see Armor) 5 — 82.
were competing with other companies of the
USSC. before the organization of the USSO.
(see Competition, before USSC.) 2—63.
had large ore interests; owned large interest in
Oliver Iron Mining Co., Pittsburg Steamship
Co., Bessemer & Lake Erie R. R. Co., and water
and natural-gaa companies S — 66.
were owners of 20 per cent of Mahoning Ore &
Steel Co CSCONJ. Dir.,
Jan. 22, 1906.
Sharon Coke Co. lease and agreement to operate . CSCONJ. Dir.,
June 15,1908.
Schoen Steel Wheel Co. bought for 1650,000 cash
and $846,000 first mortoage 5 per cent gold
bonds of the Schoen Co., and guaranty by
CSCO. of 11,350,000 of outstanding bonds CSCONJ. Dir.,
July 2, 1908.
agreement or lease of Union Steel Co. of May 2,
1904, canceled CSCONJ. Dir.,
Feb. 2, 1909.
CSCO. (Ltd.) was in Structural Steel Association
and stayed in until 1904 2.^—1710-1711,
1813-1817.
never violated trade agreements ^4 — 1714.
made complaint of another concern which had
made a mistake on a building S4 — 1716.
"Rail report" stated not to be of much value on
account of the transfer of National rails CSCOPA. Dir.,
Apr. 23, 1904.
Gayley thought the Carnegie companies were cer-
tainly parties to all agreements made before
the formation of the USSC 7—369.
American Steel Hoop Co. had an agreement with
this company (or CSCO. (Ltd).) to pay the
$150,000 to stay out of the cotton-tie business
(see Competition) CSCOPA. Dir.,
July 20, 1901.
Corey says that the Union Steel Co. is to be
pushed as hard as we can; $28 is high enough
lor billets for this CSCOPA. Dii-. ,
Nov. 4, 1902.
Republic Co. can not afford to push the CSCO.
because the CSCO. will push them all along
the line and Gore, president, wants an agree-
ment put in definite shape so there can be no
' discussion in the future CSCOPA. Dir,,
Nov. 12, 1902.
contract with AMBCONJ, relating to purchase
of supplies AMBCONJ. DL-.,
May 10, 1900;
Carnegie Co. Dir.,
Apr. 23, 1900.
AMBCONJ "is to enjoy from the Carnegie. Co.
terms or rates more advantageous than the terms
or rates at which the Carnegie Co. would sell
similar materials to any other customer" Carnegie Co. Dir.,
Apr. 23, 1900.
Carnegie Co. is to keep out of the bridge busi-
ness unless AMBCONJ, fails to make 75 per cent
of bridge work in the United States AMBCONJ. Dir
XTNITED STATES STEEL COEPOEATION. 4629
CAENEGIE COMPANIES— Continued.
General — Continued.
"giving Bome of our business we now have to
some of the other concerns of the TJSSC." CSCOPA. Dir.,
May 14, 1901.
"there is also a certain amount of business coming
to us on account of reciprocal relations " CSCONJ. Dir.,
Feb. 8, 1909.
"alliances with large concerns such as the bridge
company, Standard Oil Co., and the two car
companies," one of the principal causes for
CSCO. "getting more business than our com-
petitors" CSCONJ. Dir.,
Feb. 8, 1909.
"connection of the Standard Oil Co. with the new
organization " considered in giving the National
Transit Co. a price of $1.50 instead of quoted
price of $1.60 CSCONJ. Dir.,
Apr. 30, 1901.
"enjoyed trade in plates on ships with National
Transit Co., a department of the Standard Oil
Co., of 150,000 tons, and had been protected
through care and friendliness of Standard Oil
Co." 18—1313.
(see Standard Oil Co. and Competition) USSC. EX. Com.,
Feb. 24, 1902.
contract with Standard Oil Co. referred to by Mr.
Bope CSCO. Dir.,
Apr. 3, 1911.
dispose of stocks of 18 guming companies using
square bale, "as the purpose tor which they
were taken has now been accomplished, as
evidenced by the fact that the shipments of
cotton ties this year amount to about 2,500,000
bundles, we may as well sell them" CSCONJ. Dir.,
June 8, 1909.
Kimberley Mills property sold CSCONJ. Dir.,
Aug. 12, 1904.
contract of International Harvester Co. referred
to CSCONJ. Dir.,
July 10, 1911.
cancellation of contracts for purchases from Lake
Superior Consolidated Iron Mines of ores of
Oliver Iron Mining Co. "the execution of the
contract now to be canceled was forced upon
the Carnegie Co. by the Lake Superior Con-
solidated Iron Mines, in order to prevent their
securing any reduction in rail freights from
Mesabi Range. The formation of the USSC.
permits the canceling of these contracts and
abolishes the entirely fictitious sale of the
Oliver ores to the Consolidated mines and their
resale to the Carnegie Co." CSCOPA.
Feb. 24, 1902.
prices on all products "excepting standard rails "
are absolutely open to-day CSCONJ. Dir.,
Feb. 22, 1909.
all the big shipbuilding companies will do busi-
ness with CSCO. "on anything like an even
basis" CSCONJ. Dir.,
Feb. 22, 1909.
could buUd a mill at Clairton for $300,000 in 60
days, which would pay for itself in two months
CBoDesavsl CSCONJ. Dir.,
July 24, 1905.
- — Tipptitora 4 — 197.
4630 UNITED STATES STEEL CORPORATION.
CABNEGIE COMPANIES— Continued.
General — Continued .
cost and profits in Schwab's letter May 15, 1899
(see Cost, Profits, Rails, etc.) 18—1322.
tonnage booked under old system, a good deal of
it was fictitiout*. because they were willing to
take people on lor anything they wanted, and
any delivery, as there was not much likelihood
of a change of prices, but after the market
broke we cut out everything that was not abso-
lutely business, and what is on the books to-day
we can count on practically to the ton CSCONJ. Dir.,
Oct. 11, 1909.
dividends — directors of USSC. by letter suggest
declaration of 26 per cent dividend (JS(JONJ. Dir.,
Dec. 30, 1903.
earnings ]902, §29,277,680.12 CSCOPA.,
Jan. 27, 1903.
earnings of rSCO. and subcompanies CSCOPA.,
Feb. 16, 1903.
loans directed to be made from USSC. upon 5 per
cent notes CSCONJ. Dir.,
July 10, 1908.
Car Trust bonds — Carnr'^^'ic offered to buy
2,050,000 at 105 and interest. President di-
rected that .single .'-torkholders be asked what
portion they would care to take before accept-
mg Carnegie's offer CSCOPA. Dir.,
Apr. 23, 1901.
was going into making tubes T. H., vol. 2, p. 1642.
intended to expand business in all lines of manu-
facture, as well as tubes, in accordance with
their practice, and there was no threat or men-
ace in it (Schwab) 18— 13U.
Schwab drew plans for new Carnegie tube works
at Conneaut 18 — 1311.
plan to build tube or wire mills 6 — 310-31 2.
build railroad extension to Braddock instead of
new railroad to Lake Erie 6 — 312.
had under consideration manufacture of wire and
tubes, but the powers that decided on this ex-
pansion of the CSCO. after the formation of the
USSC. were not the onci to carry it out, having
disposed of their property 8 — 428^29.
sold to American Bridge Co. the Keystone plant. 6 — 317.
Carnegie ('o. Dir.,
Apr. 23, 1900.
always increased the -variety of its products and
branched out into new directions 5 — 428.
contract with American Tinplate Co. for 125,000
gross tons of tin and black plates for period of
five years
CSCO. agrees not to sell in United States tin and
plates, and the Ijuyers agree not to enter
into competition with ('SCO CSCO. Min. Bd. of Man-
agers,
Jan. 16, 1899. (See
Bridge's Inside History
of rscO., pp. 277, 285-
286.)
Carnegie claimed Frick fixed price for coke of
$1.35 a ton. This was disputed by Frick etal. HCFCCO. Dir.,
UNITED STATES STEEL COEPOEATION. 4631
CAENEGIE COMPANIES— Continued.
Genbeal — Continued .
$2.50 suggested as price for coke to be charged by
HCFCCO. to CSCO HCFCCO. Dir.,
Kov. 22, 1899.
new board taikes charge of HCFCCO. and votes to
uphold contract with Carnegie S. Co. and
rescinds resolution denying any contract be-
tween Frick Co. and Carnegie Co. HCFCCO. Dir.,
Jan. 10, 1900.
got coke at $1.35 from HCFCCO. and Frick ob-
jected that officers of coke company used their
positions for the advantage of the Carnegie Co. HCFCCO. Dir.,
Jan. 24, 1900.
contract with HCFCCO. caused loss of |1.55 a ton
from market, or about $4,000,000 a year to
HCFCCO., and caused refund of $526,000 on
account of coke sold during previous year Bridge's Inside History of
CSCO., p. 329.
CABNEOIE STEEL CO. (LTD.)—
Frick option^
Frick and Mellon estate were to pay $80,000,000,
and tried to get $80,000,000 from Morgan, but
he refused to put it up, and later paid
$500,000,000 or $600,000,000 for CSCO 24—1724.
there was comparatively little improvement in
the property between the time Morgan refused
to give Frick $80,000,000 to carry out purchase
and the time that he bought for $500,000,000 or
$600,000,000 S4— 1724.
Frick, Judge W. H. Moore, et al. paid $1,000,000
to Carnegie for option on CSCO., but forfeited
it. (Bridge's Inside History CSCO., p. 306.). . 1—30.
option was given to Frick and Judge Moore a year
or more prior to the sale to the USSC, with a
forfeit of $1,000,000 i«— 1319.
Frick was desirous of selling Carnegie Co. to per-
sons whose names have not been mentioned in
1899 i*— 1331.
Schwab refused to state to whom the Carnegie
Co. was to be sold May 15, 1899, except to
say it was not to the USSC. or any connection
of it iS— 1344.
Frick suit and valuation —
ironclad agreement provided that any man with-
drawing was to be paid his percentage in the
property according to its book value 6 — 433-434.
ironclad agreement provided that any partner
who went out got the book value of his share or
the actual money he had put into the concern,
and whatever money was put into the works
showed on the books of the company 8 — 401^43.
Gayley swore to the estimate of the value of
$76,610,104.05 in the answer to the Frick suit. S-433.
Gayley was a defendant in the Frick suit, in
which the answer stated that the company did
not have property in any form worth
$250,000,000 «-^27.
property was turned into the USSC. for par in the
bonds and par and one-half for the stock of Car-
negie and his family, and the others took pa,r
for the bonds and one and a half in the pre-
ferred and one and a half in the common stock
5—435.
4632 UNITED STATES STEEL, COEPOEATION.
CABNEGIE STEEL CO. (LTD.)— Continued.
Fbick suit and VAitTATiON — Continued.
answer in the Frick suit averred the value of the
property was $75,610,104.06 iS— 1363;
i— 35;
5—295.
that is the same property that was conveyed to
USSC. 18 months later for $520,000,000 iS— 1363.
Frick suit answer did not include ore leases or
increase in value iS— 1364-1366.
valuation of seventy-five or seventy-six million
dollars was "book value" but not potential
value 6—309.
reorganized at settlement of Frick suit in Decem-
ber, 1899, by forming a corporation 6 — 310.
book value of property of the CSCOLTD. which
owned approximately 29 J per cent in the H. C.
Frick Coke Co. on Jlar. 1, 1900, or just before
these two concerns were transferred to the
Carnegie Co. was roughly $81,800,000 9—512.
in Frick suit, affidavits by Gayley, Carnegie, and
others, in December, 1899, stated that the en-
tire book value of all these properties, liberally
estimated was $56,000,000 in round numbers. . 9 — 512.
the book value undervalued the property 9 — 512.
an important addition was that of the other 71J
per cent of the HCFCCO 9—513.
Lindabury states that the book value in the agree-
ment gave a value far less than the real value,
but the Frick suit was settled on a basis of
three times the value stated 9 — 513.
the defendants in the Frick suit swore that it was
not true that the book value stated was less
than the true value 9 — 513.
Smith's physical valuation is $250,000,000 9—514-515.
balance sheet as of Mar. 1, 1900 18 — 1367-1368
THE CAKNEGEE CO.—
capital stock was $160,000,000 and bonds $160,000,000
at time of organization of USSC 2 — 65.
Frick suit was settled at valuation of $320,000,000. . . 18 — 1364-1366.
new corporation (this company) was formed with
capitalization of $320, 000, 000 iS— 1364-1366; 8 435.
aharea were made $1,000, so as to keep it off the Street,
and did not conform to the rules of the stock ex-
change ^<?— 1366.
Carnegie interests received from the syndicate for the
USSC. $303,450,000 of bonds, $98,277,120 preferred
stock and $90,279,040 of common stock 2 — 66.
has $304,000,000 of bonds and $195,000,000 preferred
stock and $95,000,000 common stock; that is what
the Carnegie Co. received for the works. The stock
figured up $500,000,000 at par approximately :rs— 1361
$490,000,000 USSC. for Carnegie Co., i. e., $303,450 -
000 bonds, $98,277,120 preferred and $90,279,040
common stock 5 528_
a few months after the valuation of $76,610,104.00, the
Frick suit was settled on the basis of $320,000,000,
and two years afterwards the Carnegie Co was
bought by USSC. for $320,000,000, but not all of the
HCFCCO. was included in the ^— " —^:--^.
the railway to the lake, and two . —
cams. (Gary)
UNITED STATES STEEL COKPOEATION. 4633
THE CABNEGIE CO.— Continued.
property of the companies from 1885 to 1901 and de-
velopment stated by Gayley 6 — ^304.
small capital was put in originally T. H., vol. 2, 1856-1857.
irliatever capital or property was owned by this com-
pany was the result of the profits made in the com-
pany and increase in value of their properties, and
that was profit T. H., vol. 2, 1643-1644.
property did not increase in value between May, 1900,
and Apr., 1901, except natural increase 75-1362.
merger with National Steel Co. and American Steel
Hoop Co Carnegie Co. Dir., Dec.
19, 1902, CSCONJ, Mar .
80, 1903.
consolidation with National Steel Co. and American
Steel Hoop Co. presents difliculty that any stock-
holder not satisfied could demand an appraisement
"and an appraisement at any time of all these
properties to decide what the stock is worth, would
be embarrassing, to say the least" CSCONJ. Dir., July 1,
1901.
merger of National Steel Co., the Carnegie Co., and
American Steel Hoop Co. first merging into the
National Steel Co. to avoid any question of contin-
uance of right to do business in several States, now
held by National Co. and not by Carnegie Co. ; and
name of company afterwards changed to CSCONJ.. USSC. Dir., Jan. 6, 1903.
OAENEGIE STEEL CO. OF NEW XEESEY—
capital iacreased from $63,000,000 to $55,250,000 USSC. Dr., Apr. 3, 1905;
Apr. 25, 1905; OSCO.,
Aug. 28, 1905.
Btock certificate for $2,250,000 increased capital stock
of CSCONJ. to be delivered to USSC. for one-sixth
of the outstanding stock of the Oliver Mining Co. or
$200,000 par value CSCO. Dii. (N. J.), Nov.
20, 1905.
agreement to operate Carnegie Steel Co. of Pennsyl-
vania CSCO. Dir. (N. J.), Mar.
27, 1903;
CSCONJ., Dec. 26, 1905.
authorized the CSCOPA. to charge CSCONJ. $445,-
961.66, "being that portion of its authorized write-
off of construction and capital expenditures Dec. 31,
1904, in excess of its surplus available for that pur-
pose" CSCO. Dir., June 19, 1905.
Bale of stock of Winthrop Iron Mining Co. and Chapin
Mining Co., owned by this company, to the Minne-
sota Iron Co., and the acceptance in payment
therefor of promissory notes of the Pittsburg Steam-
ship Co., and the increase of the capital stock of
Pittsburg Steamship Co., and the purchase of said
increased capital stock by such notes — was re-
quested by Mr. Filbert, comptroller of the USSC.
The Pittsburg Steamship Co. capital stock was in-
creased to $7,887,000, and the additional stock issue
of $6,550,000 was bought by the Carnegie Steel Co.
for $6,550,000 of promissory notes of the Pittsburg
Steamship Co., aggregating $6,550,000 CSCO. Dir., Oct. 25,1909.
4634 UNITED STATES STEEL COEPOEATION.
CAENEGEE STEEL CO. OF PENNSYLVANIA—
operatiBg agreement with CSCONJ CSCONJ. Dir. ,
Mar. 27, 1903;
CSCOPENN. Dir.,
July 25, 1904;
CSCOPENN.,
July, 1905;
CSCOPENN.,
Sept. 14, 1908;
CSCONJ. Dir.,
Dec. 26, 1905.
authorized to charge CSCONJ. $445,961.66, "being
that portion of its authorized write-off of construc-
tion and capital expenditures Dec. 31, 1904, in
excess of its surplus available for that purpose " CSCONJ. Dir.,
June 19, 1905.
CEVISA CO.—
hae about 200,000,000 tons Cuban ore iS— 1028^1029.
CHAMPION mON MINING CO.—
purchased property of USSC. Fin. Com.,
Nov. 25, 1902.
CHAPIN MINING CO.—
sale of stock of Winthrop Iron Mining Co. and Chapin
Mining Co. owned by this company, to the Minne-
sota iron Co., and the acceptance in payment
therefor of promissory notes of the Pittsburg
Steamship Co., and the increase of capital stock of
Pittsburg Steamship Co., and the purchase of
said increased capital stock by such notes, was re-
quested by Mr. Filbert, comptroller of the USSC.
The Pittsburg Steamship Co. capital stock was
increased to $7,880,000, and the additional stock
issue of $6,550,000 was bought by the Carnegie Steel
Co. of New Jersey for $6,550,000 of promissory
notes of the Pittsburg Steamship Co. aggregating
$6,550,000 CSCO. Dir.,
Oct., 25, 1909.
CHEMUNG IRON CO.
interests of, as lessees of large territory of iron ore
property on Mesabi Range acquired USSC. Fin. Com.,
Mar. 3, 1903.
CHICAGO, CmCENNATI & LOUISVILLE E. E.—
acquisition of, by USSC. suggested USSC. Fin. Com.,
Feb. 24, 1910.
CHICAGO & CONNELLSVILLE COKE CO.—
bought by HCFCCO HCFCCO. Dir.,
May 20, 1889.
CHICAGO, LAKE SHORE & EASTERN EY.—
merger of Calumet & Blue Island B. R. Co Ills. St. Co. Dir.,
Dec. 29, 1896.
bill of sale of about 2,000 cars (numbers specified) to
lUinois Steel Co. for $2,401,891.13 Ills. St. Co. Dir.,
June 14, 1905.
resale to this company of cars (list set forth in Illinois
Steel Co.'s directors' minutes, June 14, 1905) for
$2,401,891.13 Ills. St. Co. Dir.,
June 9, 1909.
•19,000,000 bonds issued guaranteed by UK&E. and
USSC USSC. Fin. Com.,
Apr. 27; June 22, 1909.
$9,000,000 bonds bought and to be sold with guaranty
of USSC USSC. Dir.,
June 29, 1909.
$9,000,000 bonds guaranteed by EJE—and—Uasc ^
sold to Wm. Reed & Co
UNITED STATES STEEL COEFOEATION. 4635
CLAIETON LAND CO.—
contract, etc USSC. Dir.,
Oct. 31, 1905.
CLAIETON STEEL CO.—
capital, $3,500,000; bonds, 7 or $8,000,000 5—123.
property to be sold to USSC, 55 per cent to be taken
by USSC, Crucible Steel Co. to retain 35 per cent,
and Snyder to procure 10 per cent USSC Fin. Com. ;
Mar. 19, 1903.
proposition of USSC to take $4,000,000 of issue of
bonds and as part consideration one-half capital
stock and to name one-half directors, and also 5
per cent of Terminal Railroad & Bridge Co. ap-
proved Clairton St. Co. Dir. ;
July 14, 1903.
proposition to put company in hands of receiver, but
no action taken -. . . Clairton Co. Dir.;
Jan. 4, 1904.
contract for purchase of, adopted USSC. Fin. Com. ;
Apr. 29, 1904.
bonds guaranteed $5,000,000, by USSC USSC. Dir. ;
May 3, 1904.
resignations of board of directors and election of new
directors Clairton Co. Dir.;
May 24, 1904.
operating contract with CSCO CSCO. Dir.;
June 20, 1904.
operating contract with Carnegie Steel Co. of New
Jersey Clairton Dir.;
July 14, 1904.
Dinkey says the mill at Clairton appears to be what
they expected — a decided success CSCO. Dir.;
Aug. 7, 1905.
CSCO. could build at Clairton for $300,000 in 60 days,
which would pay for itself in 2 months (Bope). . . . CSCO. Dir.;
July 24, 1905.
2,644,144 acres coal and 295,609 acres surface bought
by Prick Co. for $2,284,448.03 subject to mortg^e
$500,000 HCFCCO. Dir.;
Dec. 20, 1909.
made steel billets for Crucible Steel Co. and upon
purchase by USSC. agreement was made that lead-
mg interests would not engage in competitive busi-
ness 25—1627-1629.
before absorption by USSC there was nothing except
financial limitations to prevent the Crucible Co.
from haviag the Clairton Co. make billets for public
sale ^5-1630.
contract not to engage in competition between Cru-
cible Co. and USSC was read from minutes and
not from contract, but Lindabury states that
whether this provision is in the contract or not "we
have all understood that just what the minutes in-
tended to be carried out was carried out" 2S — 1631.
CLAEIDGE & WOODALL—
Were furnished list of prices by Trenton Iron Co., at
which C & W. were to sell the goods 10—605.
Prices were indicated to C & W. because all wire-rope
companies have the same price list 10 — 605.
CLEVELAND CLIFFS IRON MINING CO.—
own mines in the Marquette range 7 — 394.
4636 UNITED STATES STEEL COEPOEATION.
COLORADO FUEL & lEON CO.—
stock to be acquired by Morgan & Co. suggested USSC. Dir.;
Mar. 30, 1901.
resolution to acqmre USSC. Dir.;
Apr. 1, 1901.
piu-chase of 10 sheet and 10 tin mills of, at 25 per cent
of their value, by AMSHT&TPCO. recommended. . USSC. Fin. Com.;
Dec. 12, 1905.
COLTJMBtrS STONE CO.—
one-third interest in, bought by CSCO. for $32,674.83. CSCONJ.;
June 11, 1906.
COMMEBCIAL CLTIB (Birmingham, Ala.) —
estimate of Tennessee CI&RECO.'s minerals i7— 1232.
CONNEAUT LAKE—
acquisition of amusement park deferred USSC. Ex. Com.;
Apr. 7, 1903.
CONNELLSVILLE CENTRAL RAILROAD-
to be conveyed to Bessemer & LE RR USSC. Pin. Com.;
Jan. 20, 1903.
CONNELLSVILLE COAL & IRON CO.—
bought by HCFCCO HCFCCO. Dir.;
June 21, 1889.
CONSOLIDATED BARB WIRE CO. PLANT—
cessation of operation, and plant leased ASWCO. Dir.;
July 29, 1901.
CONSOLIDATED STEEL WIRE CO. OF ILLINOIS—
had no bonded debt 1 — 24.
had capital stock $4,000,000 1—2A.
bought Washburn Wire Co. , Worcester, Mass 1 — 24.
amalgamation into American Steel & Wire Co 1 — 24.
another Consolidated Steel & Wire Co 1 — 24.
went into American Steel & Wire Co. at .$22 per share . 1 — 24.
CONTINENTAL WIRE CO.—
property purchased, and also judgment against said
company ASWC. Dir.,
June 10, 1901.
J. B. & J. N. CORNELL—
owes CSCO. $50,880.64, secured by 80 bonds of said
Cornell Co., of 1,000 par value. Frederick J.
Home, as attorney-in-fact to execute voting
trust agreement CSCO. Dir. ,
July 3, 1911.
CORRIGAN, McBINNEY & CO.—
ore land transfers to Carnegie Co Carnegie Co., Dir.,
Nov. 5, 1900.
CRAMP SHIP BUILDING & ENGINE CO.—
$4,000,000 bond issue to be floated itis reported CSCO. Dir
„ ^ , ^ Feb. 16, 1903.
McCausland says, "If it is necessary to proceed
with the work on the new cruiser at once, we will
have to decide for ourselves what terms we wiU
offer them" CSCO. Dir.,
Feb. 16, 1903.
proposed bond issue postponed Dir.,
Mar'.' 10, 1903.
payment authonzed for subscription to $550,000, face
value of notes of Cramp Co USSC. Fin. Com.
Apr. 28, 1903.
UNITED STATES STEEL. COEPOBATION. 4637
CEAMP SHIPBTJILDING & ENGINE CO.— Continued.
"Mr. McCausland. The Oramp Co. borrowed
$5,000,000, $500,000 of which had been subscribed
by the corporation; 20 per cent of the money has
been paid in, and they expect 20 per cent more in
about another week, the balance will follow from
time to time. The company will be controlled by
three voting trustees, and it is the intention to
reorganizeitand try to make it a success" CSCO. Dir.,
May 4, 1903.
"letter was read from Drexel & Co., of Philadelphia,
in regard to an extension of syndicate agreement in
connection with the subscription of $500,000 for
William Cramp & Son's Ship & Engine Building
Co., 5 per cent notes secured by consolidated mort-
gage bonds until January 1, 1906, unless sooner
terminated at the option of the syndicate managers.
Whereupon, on motion and by the affirmative vote
of all present the treasurer was authorized and
instructed to consent to such extension on behalf of
this corporation" USSC. Fin. Com., Sup.
Ext.
Mar. 3, 1904.
first order taken by CSCO. under new conditions (i. e.
after corporation cut loose from pohcy of coopera-
tion) was awarded for the shapes for the Govern-
ment collier awarded to Cramp CSCO. Dir.,
Feb. 22, 1909.
CEOWN POINT IRON CO.—
purchased for ASWCO ASWCO. Dir.,
Nov. 9, 1899.
dismantled and sold ASWCO. Dir.,
Feb. 17, 1902.
CEUCIBLE STEEL CO.—
proposed contract to supply Crucible Steel Co. its
total requirements of iron and steel, with reduc-
tions stated from market prices; and "leading
interests are not to engage in competitive business " USSC. Fin. Com.,
Mar. 19, 1903.
contract with USSC. for total requirements of Crucible
Co. "when and as the United States Steel Corpor-
ation is in position to furnish the same " USSC. Fin. Com.,
Mar. 19, 1903.
contract with CSCO . for entire supply of raw materials
on sliding scale following price of pig iron CSCO. Dir. ,
May 2, 1904.
contract confirmed USSC. Dir.,
May 3, 1904.
CUYTTNA EAILROAD—
letter of J. S. Keefe (chairman Traffic Association
USSC.) to Kerr in re rates on above road (proposed). USSC. Fin. Com.,
Dec. 21, 1909.
DERING COAL CO.—
contract with Illinois Steel Co. et al Ills. St. Co., Dir.,
Jan. 4, 1905.
contract with subsidiary companies for coal on terms
and conditions as stated in written document ex-
hibited USSC. Fin. Com.,
Jan. 17, 1905.
contract for 50 years' supply with various subsidiary
companies USSC. Fin. Com.,
Jan. 17, 1905.
4638 UNITED STATES STEEL, COBPOEATION.
BERING COAL CO.— Continued.
contract with AMBCONJ. for not less than 900,000
tons and not more than 2,700,000 tons of coal per
year at 39 cents above mining rate AMBCONJ. Dir.,
Jan. 20, 1905.
refused to deliver coal under contract after Feb. 6,
1909 USSC. Fin. Com.,
Feb. 2, 1909.
claims of Chicago banks upon assignment to them of
Bering Coal Co. presented by X. K. Knapp USSC. Fin. Com.,
Apr. 2, 1909.
Apr. 30, 1909.
BERING HARVESTER—
Jones & Laughlin to be seen about this matter USSC. Ex. Com.,
Apr. 21, 1903.
DEKALB FENCE CO.—
entire capital stock 1,000 shares and Union Fence
Co., 500 shares, bought for $275,000 ASWCO. Dir.,
Mar. 16, 1909.
DETROIT BRIDGE CO.—
plant property and assets bought for $600.000 AMBCONJ. Dir.,
Nov. 12, 1901.
W. DEWEES WOOD CO.—
bought by Am. Sht. Co. for $2,500,000 preferred and
$2,500,000 comnifin stock and the guaranty of
$2,000,000 bonds of said company AM. SHT. ST. CO. Dir.,
May 1, 1900.
DULUTH PLANT—
$10,000,000 recommended for plant USSC. Pin. Com.,
Sept. 28, 1909.
DULUTH & IRON RANGE R. R.—
owned by Minnesota Iron Co FED. ST. CO. Dir.,
Dec. 20, 1898.
had bonds $7,731,000 2—68.
proper amount of capital stock and dividends referred
to Gary with power USSC. Fin. Com.,
Nov. 18, 1901.
F. E. Hughes has charge of all operations 7 — 378.
Was buUt to carry ore from the Vermillion Range to
Lake Superior. 7 — 395.
entire Vermillion Range S — 85.
entire Mesabi Range 5 — 85.
no other road enters Vermillion Range S — 85.
about 260 miles main line, plus, etc 3 — 85.
Has no docks anywhere except at Two Harbors on
their road. The other ores from the Mesabi Range
of the USSC. go over the DMN . , or the Hill Road . . «— i43.
no ore shipped over this road to Duluth 8 — 440.
Only USSC. ship ore over the DIR. from Tower
Junction to Two Harbors 8 — 440.
Virginia rate is 80 cents and distance about 97 miles
to Diduth, and the rate is .93 of a cent per ton
mile, whereas the rate to Two Harbors is 1.14 cents. 8 — 441-2.
1910 tonnage, 7,085,000 tons 7—106.
bond of $1,000,000 of USSC. given to Central Trust
Co. by reason of that company waiving clause in
indentures given by DMN USSC. Fin. Com.,
, . J , . Mar. 19, 1903.
claimed to be interstate road before Minnesota Com-
mission; have not been investigated by Interstate
Commerce Commission n 9aa_9^.«;
UNITED STATES STEEL COKPOEATIOX. 4639
DtTLTTTH, MISSABE & NORTHERN RAILWAY—
W. J. Olcott, president, and W. A. McGonigal, vice
president 7 — 378 .
was built by the Merritts and secured by the Rocke-
fellers 7—395.
ships approximately 13,000,000 tons in about 7
months S — 146.
1910 tonnage, 13,609,000 tons 7 — 106.
bond of 11,000,000 of USSC. given to Central Trust
Co. by reason of that company waiving clause in
indentures given by DMN USSC. Fin. Com.,
Mar. 19, 1903.
enters Mesabi Range S — 85.
Gary director in S — 87.
entire capital stock was owned by Lake Superior
Con. I.M 5—115.
length 274 miles (Gary says 316) 3 — 115.
outstanding capital stock $4,112,500 3 — 115.
capital stock does not represent value of railroad
but a larger sum S — 116.
earnings of DM&N 5—116-117.
Gary says large earnings because of good equipment
and enormous business given by steel corporation. . S — 119.
1910 carried 15,000,000 tons (Gary) 5—232.
claimed it was interstate carrier .5 — 233 .
Gary thought it was intrastate carrier .5 — 233.
although R. R. is physically intrastate, USSC. billed
ore to interstate destination 5 — 234 .
railroad claimed to be interstate before Minn. Com-
mission, and have not been investigated by Inter-
state Com 5—234-235.
DULUTH, RAINY LAKE & WINNEPEG R. R.—
run into Meaabi Region 3 — 91 .
owned by Canadian Northern 3 — 91.
EASTERN STEEL CO.—
has a large tonnage Cuban ore lo — 1028-1029.
has interest in Cuban ore land 18 — 1343.
will probably shut down CSCO. Dir.,
Julv 1, 1907.
EDGAR ZINC CO.—
purchased by ASWCO ASWCO. Min. Ex. Com.,
Feb. 16, 1899.
capital increased to 11,000,000 from $500,000 ASWCO. Min. Ex. Com.,
Oct. 23, 1900.
10 per cent dividend for 1901 ASWCO. Dir..
Dec. 9, 1901.
stock sold by ASWCO ASWCO. Dir.,
Mar. 20, 1906.
ELGIN, JOLIET & EASTERN R. R.—
owned by Morgan and friends 1 — 30. .
trackage rights owned by Illinois Steel Co 2 — 67.
outer belt line 2—68 .
capital stock $6,000,000 2—68.
bonds $7,500,000 2—68.
Federal Steel Co. owners of entire capital stock 3 — 119.
p Fed. St. Co., Dir. Min.,
Dec. 20, 1898.
4640 UNITED STATES STEEL COEPOEATIOK.
ELGIN, JOLIET & EASTERN B. B.— Continued.
purchase of switching engines recommended to Fin.
Com USSC. Ex. Com.,
May 5, 1903.
guaranteed $9,000,000 bonds of CLS&RRR USSC. Fin. Com.,
Apr. 27, June 22, 1909.
ELK CBEEK DOCK CO.—
to be conveyed to Conneaut Dock Co USSC. Fin. Com.,
Jan. 20. 1903.
EMPIRE BRIDGE CO.—
all New York plants of AMBCONJ. transferred to this
company for $2,996,000, including the Brooklyn,
Buffalo, Albany, Croton, Horseheads, Elmira, and
Rochester plants, and the following resolution was
passed: "Resolved, That the plants of the Amer-
ican Bridge Co., situated at Brooklyn, Buffalo,
Albany, Groton, Horseheads, Elmira, and Roches-
ter are necessary and desirable for the corporate
purposes of this company; and the same are worth
$2,996,000" EMPIRE B. Co. Dir.,
Oct. 28, 1901.
capital stock increased from $1,000,000 to $3,000,000. . EMPIRE B. Co. Dir.,
Oct. 28, 1901.
purchased all plants of AMBCONJ. in New York. . . . AMBCONJ.,
Oct. 28, 1901.
plants sold to Empire Bridge Co.: Albany plant,
Brooklyn plant, Buffalo plant, Elmira plant, Gro-
ton plant, Haverstraw plant, and Rochester plant,
for $2,996,500 of stock of EBCO AMBCONJ. Dir.,
Oct. 28, 1901.
JAIRCHANCE FURNACE CO.—
all omitted capital stock and all but 49 bonds bought
by HCFCCO. for $177,000 HCFCCO. Dir.,
Nov. 9, 1895.
FALLS RIVET & MACH. CO.—
bonds for $20,250 held by ASWC. decreased in value
to $10,125 ASWCO. Dir.,
Mar. 10, 1903.
FAYETTE COKE & FURNACE CO.—
bought by HCFCCO HCFCCO. Dir. ,
Oct. 1, 1889.
FEDERAL STEEL CO.—
owned capital stock of Minnesota Iron Co., which in
turn owned stock of the Duluth & Iron Range R. R. 1 — 28.
owned Lorain Steel Co 1 — 28.
owned Illiaois Steel Co i — 28.
was really three separate, good-sized corporations 1 — 28.
came after the forfeiture of Prick's option on Carnegie
Co. (1898) 1—30
Federal Steel Co. was formed by the acquisition of
the Lorain and the E. J. E. (owned by Morgan et al.)
and Minnesota Iron Co. and Illinois Steel 1 — 30; 2 — 67.
began business Nov. 1, 1899 s — 92.
. negotiations for organization 4 — 201-204.
had stock outstanding of $90,000,000 to $95,000,000. . . . 5—258.
Assets of companies merged in Federal Steel Co. were
as follows: Miunesota Iron Co., assets, $22,365,766.91;
Illinois Steel Co., assets, $35,564,341.76; Elgin,
Joliet & Eastern Ry. Co., assets, $14,035,402.08;
and the total surpluses of the three companies of
assets over liabilities did not exrfifirl Sin 000 ono
UNITED STATES STEEL CORPORATION. 4641
FEDEEAl STEEL CO.— Continued.
The Federal Steel Co. was capitalized for$200,000,000. Fed. St. Co. Dir.
Dec. 20, 1898.
The cut in the price of rails in 1897 and 1898 might
have had an influence in tending to the formation
of the Federal Steel Co 8 — 423.
acquisition of at least two-thirds of capital stock of
Minnesota Iron Co., the Illinois Steel Co., and the
Elgin, Joliet & Eastern Ry. Co., and possible ac-
quisition of two-thirds of Lorain Steel Co., Lorain,
Ohio, and the Johnson Co., of Pennsylvania; nego-
tiations through J. P. Morgan & Co Fed. St. Inc. Mtg.,
Sept. 9, 1898.
H. C. FBICK COKE CO.—
Capital stock was originally (in 1882) $2, 000, 000, which
was successively increased as follows: November,
1883, $3,000,000; January, 1889, $5,000,000; Decem-
ber, 1894, $10,000,000; March, 1903, $20,000,000,
upon consolidation with United Coal & Coke Co.,
McClureCoke Co., Continental Coke Co., American
Coke Co., Southwest Connellsville Coke Co HCFCCO. Stockholders'
Min.,
Feb. 8, 1882.
Estimated value of proj)erty of is $45,000,000, as
stated by Lynch, president, and $40,000,000 as
stated by Frick, on the basis of estimating .|1,000,-
000 value of 110 acres of coal HCFCCO. Dir.,
Jan. 28, 1899.
consolidation. Mar. 28, 1903, agreement with various
coke companies HCFCCO. Stockholders'
Min.,
Mar. 30, 1903.
Carnegie claimed fixed contract price of $1.35 for
coke for Carnegie Co. This was disputed by Frick
andLynch HCFCCO, Dir.,
Sept. 27, 1899.
$2.50 suggested as price to be charged Carnegie Co. . . HCFCCO. Dir.,
Nov. 22, 1899.
protest against $1.35 contract with Carnegie Co., from
John Walker and S. D. Schoonmaker HCFCCO. Dir.,
Feb. 6, 1900.
taken over by new board and contract with Carnegie
Co., upheld and resolution denying contract re-
scinded HCFCCO. Dir.,
Jan. 10, 1900.
compelled to execute contract with Carnegie Co. for
all coke required by Carnegie Co. for fl.35 HCFCCO. Dir.,
Jan. 10, 1900.
$1.35 a ton price fixed for coke to be sold to Carnegie
Co. by HCFCCO HCFCCO. Dir.,
Jan. 24, 1900.
Contract with CSCO. caused loss of $1.63 a ton from
market, or about $4,000,000 a year to HCFCCO.
and caused refund of $596,000 on account of coke
Bold during previous year Bridges's Inside History of
the Carnegie Steel Co.,
page 329.
received $20,000 first mortgage bonds and $4,526.76
certificates of debentures of Troy Steel Co., in
settlement of HCFCCO. claim for $6,526.76 HCFCCO. Dir.,
Jan. 22, 1896.
had 38,715 unmined coal Jan. 1, 1900 HCFCC. Dir.,
Jan. 24, 1900.
56,372 acres total unmined owned or controlled HCFCCO. Dir.,
Dec. 27, 1905.
4642 UNITED STATES STEEL COEPOEATIOX.
H. C. FBICK COKE CO.— Continued.
Southwest Coal & Coke Co. stock bought, one-half to
be held in trust by Stirling and Morse. In the
agreement is provided, "It is fiu-ther agreed that
aB parties hereto shall uss their best efforts to ob-
tain rebates, concessions on freight, or allowances
of any kind as above set forth, for the purpose
herein specified"; and "all rebates, commissions
on freight rates, or allowances of any kind shall
go into the treasury of the company who made
Soke" HCFCCO. Dir. Min.,
Jan. 25, 1885.
Pittsburg & Connellsville Gas & Coke Co. bought.... HCFCCO. Dii-.,
May 11, 1888;
Dir., Mar. 28, 1889;
bought Chicago & Connellsville Coke Co HCFCCO. Dir.,
May 20, 1889.
Connellsville Coal & Iron Co. bought HCFCCO. Dir.,
June 21, 1889.
Kyle Coal Co. bought
Fayette Coke & Furnace Co. bought Dir.,
Oct. 1, 1889.
bought one-third Oliver property consisting of 326,-
514 acres HCFCCO. Dir.,
Oct. 17, 1889.
Coke Co. of Connelsville bought for $420,000; owning
1,188 acres coal and 276 acres surface HCFCCO. Dir.,
Dec. 26, 1889.
Coke Co. of Connellsville bought HCFCCO. Dir.
Dec. 26, 1889.
J. C. Strickler Coke Co. bought HCFCCO. Dir.,
June 10, 1890.
bought 99 shares of United Coal & Coke Cor. for
$4,943.36 HCFCCO. Dir.,
Oct. 24, 1890.
bought one-half capital stock HMtetter-Connells-
ville Coal Co., for $10,000; the capital stock being
$1,500,000. There was a mortgage of $1,500,000,
but no bonds were to be paid until the end of 50
years unless out of sinking fund. In addition to
one-half of the stock, a certain number of shares to
be put in escrow by Whitney to ^ve control to
Frick Co., in case of the death of Whitney, or sale of
his shares HCFCCO. Du-.,
Oct. 24, 1890.
bought Moore's interest in Restone Coke Co.,
HCFCCO. owning other two-thirds HCFCCO. Dir.,
Oct. 24, 1890.
bought 40 shares Redstone Water Co HCFCCO. Dir.,
Oct. 24, 1890.
purchase of 271 acres Ferguson coal, advocated in part
to prevent McClue Coal Co. from buying HCFCCO. Dir.,
Oct. 24, 1890.
Youngstown Coke <'o. one-fourth interest brought
HCFCCO. owning three-fourths already. Price
$47,000. (May 9, 1895) HCFCCO. Dir.,
May 9, 1895.
Youngstown Coke Co. all assets bought for $185,000. . HCFCCO. Dir.,
May 11, 1895.
bought McClure Coke ('o.'s 620 acres coal and improve-
ments at $850 or $900 acre, and $200,000 for all its
625 cars HCFCCO. Dir.,
July 8, 1895.
Fairchance Furnace Co., all ca£
49 of the bonds bought for $1"
UNITED STATES STEEL, CORPORATION. 4643
H. C. FEICK COKE CO.— Continued.
bought one-hali Calument Coke Co., HCFCCO. own-
ing other one-half HCFCCO. Dir.,
Feb. 1, 1899.
15,000 shares of Hostetter-Connellsville Coke Co., at
$120 per share, bought HCFCCO., Stockholder's
Min.,
Jan. 14, 1908.
Haggaley property purchase from Puritan Coke Co.
for $355,500 in three annual payments, at 5 per cent,
and assumption of mortgage of $270,000 or better
terms USSC. Fin. Com.,
Jan. 25, 1910.
Pittsburg Coal Co., contract at $1,450 acre HCFCCO. Dir.,
June 26, 1911.
earned $3,498,200 in 1899 and paid 24 per cent divi-
dends, or $2,400,000 Jan. 1 to Dec. 31, 1899 HCFCCO. Dir.,
Jan. 24, 1900.
18 per cent dividends, or $1,800,000, Jan. 1 to June 30,
1900 HCFCCO. Dir.,
Apr. 30, 1900.
Carnegie Co. contract at $2 for all requirements July,
August, September, 1900 HCFCCO. Dir.,
Aug. 28, 1900.
Earnings 1900, $6,445,000; dividends 43 per cent, or
$4,300,000 HCFCCO. Dir.,
Jan. 9 and 30, 1901.
Statement of operations, 1901 HCFCCO. Dir.,
Jan. 16, 1902.
36 per cent dividends of $3,300,000, 1901 HCFCCO. Dir.,
Jan. 16, 1902.
43 per cent paid 1902 HCFCCO. Dir.,
Dec. 24, 1902.
58 per cent dividends, or $10,250,000, paid for 1903... HCFCCO. Dir.,
Jan. 12, 1904.
20 per cent dividends, or $4,000,000, paid 1905, and
earnings, $4,765,000, plus $264,000 earnings of Hecla
Coke Co. and one-half Hostetter Co HCFCCO. Dir.,
Dec. 27, 1905.
43 per cent dividends paid 1906 HCFCCO. Dir.,
Dec. 17, 1906.
17 per cent dividends, or $3,400,000, 1907 HCFCCO. Dir.,
Dec. 21, 1907.
$6,050,000 earnings upon 10,715,000 tons of coke man-
ufactured and 760,000 tons shipped HCFCCO. Dir.,
Dec. 21, 1907.
16 per cent dividends, or ^3,200,000; earnings $3,-
562,000 upon 6,223,900 tons of coke manufactured,
550,200 tons coal shipped, and 925 acres mined HCFCCO. Dir.,
Dec. 17, 1908.
27 per cent dividends, or $5,400,000; earnings $5,-
812,492.77; coke manufactured, 10,180,928 tons;
coal shipped, 1,029,881 tons HCFCCO. Dir.,
Dec. 20, lylO.
22J per cent dividends, or $4,500,000; earnings $4,-
419,508.57 on 9,735,879 tons coke manufactured;
1,237,602 tons coal shipped HCFCCO. Dir.,
Dec. 19, 1910,
GEORGIA CENTRAL RY.—
referred to by Perkins in connection with his state-
ment that the Trust Co. of America was doing a
business which was not strictly a trust company
business 2:?— 1535.
Thome said to own a controlling interest in the Geor-
„;„ P^^t-^i T>.. 2;— 1505.
4644 united states steel cokpobation.
ginning; companies—
675 shares of 18 small companies bought for $19,050
and marked down to $8,651.25 (as advised by Mr.
Harrison of Atlanta Compress Co.) can not be sold
for more than 30 to 40 cents on the dollar. Mr. Bope
recommends the sale of these stocks "and as the
purpose for which they were taken has not been ac-
complished, as evidenced by the fact that the ship-
ments of cotton ties this year amount to about
2,500,000 bundles, we may as well sell them."
"These are stocks of the companies which favored
square bales for cotton and seed out cotton ties
exclusively" CSCO. Dir.,
June 8, 1909.
CSCO. resolved to get rid of stock in 18 ginning com-
panies which had used the square-bale process, and
which were not profitable. To be disposed of as
C. C. Harrison, president Atlanta Compress Co. can
dispose of the same CSCO. Dir.,
June 15, 1908.
GLASGOW IRON CO.—
manufacture iron plates for standpipes, tanks, boilers,
ships, bridges, and largely skelp (12--814), and some
small quantities of steel slabs rolled into plates IS — 805.
was member of the Steel Plate Association; deposited
$4,000 with W. L. King, treasurer; made monthly
statements or reports to Temple; and was not to
exceed 40,000 tons per annum; were penalized
$1,700 for exceeding allotment if— 806-807.
GBANITE CITY LIME & CEMENT CO.—
sold ASWCO. Dir.,
Dec. 19, 1905.
GBANITE CITY WERE WORKS—
Voncamp proposition referred to in telegram from
Alfred Clifford to Max Pam, dated Apr. 24, 1901,
relating to purchase of judgment, redemption, etc.,
referred to Edenbom with power USSC. Ex. Com..
Apr. 25, 1901.
GREAT WESTERN MINING CO.—
mining contract guaranty by USSC. to be exhibited
to stockholders USSC. Dir. ,
Feb. 26, 1904.
GREAT NORTHERN RAILROAD—
is a HiU road, so called 5 — 88.
had control of large quantity of ore properties and
leased ore lands to some USSC. companies S — 88.
ore leases subject to cancellation in 1915 S — 88.
ore lease not made by Great Northern, but another
corporation or trustee 5 — 88.
certificates were issued to stockholders of Great
Northern as a dividend S — 88.
Northern Pacific Railroad has large holdings in
Mesabi 3 — 90.
GRISWOLD WIRE CO.—
"are the only ones making ties in opposition to our
company," and purchase of the Gnswold Co. voted
for $75,000 or better USSC. Ex. Com..
June 3, 1902.
at Braddock, Pa., bought for ?100,000 ASWC. Dir.,
July 15. 1902.
UNITED STATES STEEL OOKPOEATION. 4645
M. A. HANNA & CO.—
Carnegie Co. contract with Hanna Co. to pay one-half
cent on all ores used by National Steel Co. to be
canceled, because no service was rendered
got 7i cents a ton on all shipped from Winthrop and
10 cents on Chapin
got $100,000 from National altogether and CSCO. paid
them $30,000 in 1902 CSCO. Dir.,
Feb. 24, 1902.
HABEIMAN RAILROADS—
orders for 0. H. raUs from TCI. were 150,000 tons and
over and several previous orders for trial lots as
high as 50,000 tons iS— 1231-1233.
HARVEY UNITED STEEL CO. (LTD.)^
concessions from, desired by CSCO., one of which is
"that we want to be protected from Mid vale to the
extent of the royalty on the armor " CSCO . Dir. ,
June 27, 1904.
HECLA COKE CO.—
togetherwithHeclaSupplyCo.,boughtfor$2,000,000. HCPCCO. Dir.,
Apr. 26, 1905.
HECLA SUPPLY CO.—
together with Hecla Coke Co. , bought for $2,000,000 . . HCFCOO. Dir. ,
Apr. 26, 1905.
HOSTETTER-CONNELLSVILLE COKE CO.—
entire ownership purchased USSO. Pin. Com.,
Aug. 27, 1907.
1,500 shares bought by HCFCOO HCPCCO. Stockholders'.
Min.,
Jan. 14, 1908.
record in suit of J. W. Shields v. Hostetter-Connells-
ville Coke Co 5—219.
ILLINOIS STEEL CO.—
capital stock, $18,650,000 and $9,822,000 bonds 2-68.
was amalgamation of north Chicago, south Chicago,
Union and Joliet and building of New South
Works 2-67.
and owned C. L. S. & E .2-67.
North Chicago Rolling Mill Works, but two plants;
one at nortti Chicago and one at Bayview, or south
Milwaukee ^-28.
Gates acquired ore land for Illinois Co. and that
resulted in amalgamation with Minnesota Iron Co. 1-29.
owns trackage rights over C. & E. Ills ;2-67.
owns trackage rights over E. J. E ;?-67.
owns S. W. Connellsville Coke Co., Mount Pleasant,
Pa 2-67.
owns Eureka Coal Co 2-67-68.
owns iron ore in Michigan 2 — 68.
owns iron ore near Milwaukee i— 68.
owns quarries, etc 2 — 68.
manufactiued pig iron, ingots, blooms, billets, plate
and rails, some rods and some merchant steel 2 — 68.
Illinois did not make same products as Lorain, and
did not compete with Loram 2 — 62.
capital stock was increased from $25,000,000 to
$50,000,000 on Peb. 18, 1891 Ills. St. Co.Wir.,
Feb. 18, 1891.
-= p1 Co Ills. St. Co. Dir.,
Dec. 14,[1898.
4646 UNITED STATES STEEL COEPOBATION.
ILLINOIS STEEL CO.— Continued.
sold 218 Bhares USSC. preferred to USSO Ilia. St. Co. Dir.,
Dec. 14, 1905.
executive and finance committees abolished Ills. St. Co. Dir.,
Dec. 14, 1898.
executive committee appointed Ills. St. Co. Dir.,
Jan. 16, 1899.
made billets at Cleveland and Youngstown 7 — 369.
Am. Steel Hoop Co. had an agreement with this com-
pany to pay them $150,000 to stay out of the cotton-
tie business CSCO. Dir.,
July 30, 1901.
was in and remained in Structural Steel Association. ^4 — 1711.
J. R. Van Ormer told Kauffman that the president of
the Illinois Steel Co. said that Huston should have
kept the Lukens pool agreement personal to him-
self and should have a typewriter to do it, and that
he should have stayed with the typewriter while he
was doing it. The agreement was dated and
printed Nov. 9, 1900 10—552.
agreements authorizing certain railroads to use
premises of various works Ills. St. Co. Dir.,
June 9, 1909.
(Note. — The consideration for these agreements
should be examined for agreements as to per-
formance of switching and railroad service for
special rates, etc.)
bill of sale of about 2,000 cars (numbers specified) of
CLS&ERRCO. to Ills. St. Co. for $2,401,891.13... Ills. St. Co. Dir.,
June 14, 1905.
cars in above bill of sale leased to CLS&ERRCO. for
$150,000, etc Ills. St. Co. Dir.,
June 14, 1905.
sale of cars to CLS&ERRCO. for $2,401,891.13 (this
bill of sale includes same list of cars that were sold
to Illinois Co. by bill of sale of CLS&ERRCO. in
Illinois Steel Co.'s directors' minutes June 14,
1905) 111. St. Co. Dir.,
June 9, 1909.
properties specified Fed. St. Co. Dir.,
Dec. 20, 1898.
lease of Indiana Steel Co.'s Gary plant 111. St. Co. Dir.,
Mar. 15, 1910.
Universal Portland Cement Co. agreement to lease
to, lands of cement plants Nos. 1 and 2 and convey
plants Nos. 3 and 4 and buildings, equipment, and
trade-marks in consideration for delivery of all
capital stock of $1,000,000 111. St. Co. Dir.,
Sept. 28, 1906.
Universal Portland Cement Co. plants repurchased
and leases canceled 111. St. Co. Dir.,
June 10, 1908.
lease cement plants 2, 3, 4, to Un. P. C. C. for rental
of 80 per cent of net income after deducting ex-
penses and $25,000 111. St. Co. Dir.,
June 10, 1908.
rental charged Universal Portland Cement Co.
reduced to 60 per cent of net income 111. St. Co. Dir.,
June 8, 1910.
rental charged by CSCO. increased from 20 per cent
to 40 per cent tt_ t. ^^-j^ ^t ^-
dividends, see last page of minu ^iiiniili i.
X7NITED STATES STEEL, COBPOEATION. 4647
INDIANA STEEL CO.—
Gary plant leased to Illinois Steel Co 111. St. Co. Dir. ,
Mar. 15, 1910.
INLAND STEEL CO.—
of Chicago, and Youngstown Sheet & Tool Co., of
Youngstown, Ohio, and a new steel plant at Cleve-
land, Ohio, are all the new concerns of any impor-
tance organized since USSX IS — 867.
INTEBNATIONAL HABVESTER CO.—
Perkins organized it and had Gary, Beam, and Baker
put on board and committee to accomplish certain
objects, i. e., "development of foreign business and
labor problems, profit-sharing problems, etc." 23 — 150.
Perkins became associated with it upon its organiza-
tion in 1902 ;?0— 1419.
Perkins chairman finance committee ZS — 1641.
has on finance committee George W. Perkins, George
P. Baker, Elbert H. Gary, and Norman B. Ream;
and USSC. has E. H. Gary, George P. Baker,
George W. Perkins, Norman B. Ream, and J. P.
Morgan, jr «— 1642.
statement by Bancroft, counsel for Int. Harv. Co H — 1748-1756.
nvestigated by Burdette D. Townsend for attorney
general i;2— 792.
i^— 825-839.
certificate that Townsend report is true copy 23 — 1643.
Department of Commerce and Labor, investigating . . 12 — 799.
Hansbrough Senate resolution to request the Depart-
ment of Commerce and Labor to defer investigation
of International Harvester Co. until the Depart-
ment of Justice could proceed in the case 12 — 795-798.
names of officers, finance committee, and directors
in the International Harvester Co. and also in the
USSC 12—%Q2.
prices abroad compared with United .States prices. . . 23 — 1644-1645.
letter from La Crosse Plow Co., signed also Dickinson,
stating they are independent competitors of the
International Harvester Co., denying that goods
are sold for less abroad than in United States,
and chaining that USSC. allows a rebate to Har-
vester Co 21—\hYi.
has arrangement with State of Kansas whereby State
shall regulate prices at which the Harvester Co. can
sell within its borders. Bope says it is an arrange-
ment which so far as he knows has never been suc-
cessful before CSCO. Dir.,
Feb. 8, 1909.
International Harvester Co. has a plant at Hamilton,
Ontario CSCO. Dir.,
July 6, 1903.
to get business for CSCO. it was necessary to quote as
low as one-fifteenth or one- twentieth, which was so
low the business was let pass CSCO. Dir.,
July 6, 1903.
makes its own steel in Wisconsin Steel Co., a subcom-
pany, and purchased in 7 years prior to Aug., 1910,
only 10 per cent of its steel from USSC. and 30 per
cent from competitors Bancroft's statement for
Int. Harv. Co.
«4— 1753.
- — ^^ USSC. Fin. Com.,
Dec. 9, 1902.
4648 UNITED STATES STEEL, CORPORATION.
INTEENATIONAL HARVESTEK CO.— Continued.
failed to reach any agreement with USSC TJSSC. Fin. Com.,
Nov. 28, 1904.
failure of negotiations with USSC USSC. Fin. Com.,
Sept. 27, 1904.
purchase of Acme Harvester Co. suggested as outlet for
products of USSC USSC. Fin. Com.
Sept. 27, 1904.
Commissioner of Corporations requested to furnish
evidence held by his department as to relations be-
tween International Harvester Co. and USSC. and
railroad companies in which E. H. Gary, Geo. H.
Baker, or Geo. W. Perkins is director 1^ — 803-5.
Commissioner of Corporations declined to state, under
the law, whether there had been an agreement be-
tween the International Harvester Co. and the
USSC i2— 802.
contract referred to ■ CSCO. Dir.,
July 10, 1911.
price of 1.46^ given to them by Illinois Steel Co.,
which is below the market, and price will not be
announced, and was given "to these people with
view of their position as manufacturers" CSCO. Dir.,
July 27, 1903.
competition of, is so serious as to threaten existence of
a good many of the smaller agricultural concerns,
and CSCO. gave independents a price of 1.40 cents
for 15 days and afterwards price of 1.50 cents while
they wanted price of 1.30 cents CSCO. Dir.,
Apr. 2, 1906.
International Harvester Co. are "extending their
operations to almost everything the farmer needs."
They_ could now manufacture all the binders needed
in this country and are making other lines of agri-
cultural machinery, and have recently gone into the
manufacture of wagons. They turned out 12,000
wagons last year, have doubled capacity for this
year, and next year expect to turn out about 100,000.
They make all their own steel, and all this tonnage
has been taken away from the steel manufacturers.
After carefully considering the matter, we decided
we could not grant the price they (the outside agri-
cultural makers) asked for — 1.30 cents — but that we
would make them a price of 1 .40 cents. We got to-
gether on Saturday and, while we did not vote a
certain price, we came to the understanding we
would reduce the price to the agricultural and
wagon manufacturers only for 15 days, and those
who did not come in by that time will have to pay
1.50 cents. The matter was put up to the com-
mitter that waited upon us and they claimed to be
very indignant, and they said they were going to call
a ineeting of the association in Chicago and start a
tariff agitation among the farmers against the Steel
Trust CSCO. Dir.,
Apr. 2, 1906.
prices reduced from 1.50 cents to 1.40 cents for limited
time, but not accepted by independent agricultural
makers Gen. Man. Sal. Min.,
. , . , , . Apr. 18, 1908.
prices to independent agricultural people made at ad-
vance of $4 per ton advance over last year's prices
with the exception of reexport material Gen. Man Sal Min
agricultural implement people i^
P"ces
UNITED STATES STEEL. OOEPORATION. 4649
INTEBNATIONAL IRON AND STEEL ASSOCIATION—
suggested in fall of 1910 upon the visit of the foreign
manufacturers to United States S — 81.
INTEENATIONAL NICKEL CO.—
contract to sell to USSO. at 5 cents less per pound
than other purchasers 23 — 1633.
5 cents less a pound to USSO. than to other customers
for nickel USSO. Fin. Oom.,
Jan. 26, 1904.
INTERSTATE TRANSIT CO.—
contract with Illinois Steel Oo. giving preferential to
use 1,194 cars in consideration of agreement of Illi-
nois Steel Oo. to pay unpaid balance upon 60 prom-
issory notes for $440,000 in case of default by Inter-
state Transit Oo 111. St. Oo. Dir.,
May 7, 1890.
JACKSON ARCHITECTTTAL IRON WORKS—
owes OSOO. about $50,000, and various banks, and
Wilson, of Jackson company, is not well posted on
their financial affairs OSOO. Dir.,
Mar. 16, 1903.
JOLIET STEEL CO.—
bought by the Illinois Steel Co 111. St. Oo. Dir. Min.,
May 4, 1889.
JONES & LATJGHIJN-
account in Steel Plate Association 11 — 644.
to be seen about Dering harvester matter USSO. Fin. Oom.,
Apr. 21, 1903.
had to put out an additional issue of $10,000,000 of
bonds, and they have used the first issue of
$15,000,000 OSOO. Dir.,
May 29, 1911.
sold 250,000,000 or 300,000,000 tons Mesabi ore for
1901 USSO. Fin. Com.,
Apr. 10, 1901.
own Lake Angeline mine in the Marquette Range . . 7 — 394.
made billets 7—369.
have been running 30 years 1 — 56.
own ore mines 1 — 56.
have holdings on Mesaba Range 3 — 89.
JUNIATA COKE CO.—
capital reduced from $3,000,000 to $200,000 ASWCO. Dir.,
Mar. 21, 1905.
property purchased for $148,000 by HOFOOO HOFOOO. Dir.,
July 27, 1908.
KELLY & JONES CO.—
sold goods for Trenton Iron Co., which used to furnish
a statement of the prices at which goods were to be
sold, but lately Mr. Jones says there has been no
restriction on prices. The K. & J. Co. were not in
any pool agreements .' 10 — 602-604.
KEYSTONE AXLE WORKS—
auction sale advertised OSOO. Dir.,
Jan. 7, 1902.
KOKEN PLANT—
bought by AMBCONJ AMBOONJ. Dir.,
May 16, 1911.
TTVT.ii! rninr. r.n .
HOFOOO. Dir.,
Oct. 1, 1889.
4650 UNITED STATES STEEL COEPOKATION.
LA BELIE IRON WOEKS—
Topping was president of, and is independent n — 1268.
LACKAWANNA STEEL CO.—
Lackawanna Steel Co. owns Brotherton and half a
dozen other mines 1 — 53.
has holdings on Mesabi Range S — 89.
Samuel Mather, director Lackawanna, is also director
of USSO 5—222.
Lackawanna is running worse than at any time since
the panic (see USSC. Dir., Feb. 22, 1909, to effect
TJSSC. has cut loose from policy of cooperation) CSCO. Dir. ,
Mar. 8, 1909.
1.20 cents price quoted on bars to Mr. Albright, of
Buffalo Bolt Co., who said "Lackawanna could not
nearly take care of them, could give them neither
the fiiiish or delivery required, and he was wilUng
to pay any price that we wanted. This is just an
illusfzation of how the market is centraUzing around
us, and I beheve we are going to get the full benefit
of oiur position and our prices" CSCO. Dir.,
Mar. 8, 1909.
LAKE SUPERIOR CONSOLIDATED IRON MINES—
Carnegie contract with, for purchase of OUver Iron
Mining Co. ores from, canceled Carnegie Co. Dir.,
Feb. 24, 1902.
LAMB WIRE CO.—
bought by ASWCNJ ASWCO. Dir.,
Apr. 21, 1902.
LIFE INSURANCE COMPANIES—
in Germany could not hold stocks, but could hold
bonds 20—1461.
LINCOLN TRUST CO.—
was not saved by the Trust Co. of America by taking
over TCI. by USSC. nor were they in trouble be-
cause of the TCI. (see Tennessee CIRRCO. syndi-
cate, etc.) , ^2, — 1523.
LORAIN STEEL CO.—
capital stock, $6,000,000, pref.; 13,000,000 common;
bonds $1,400,000 2—68.
was a manufacturing company 2 — 68.
manufactured pig iron, blooms, billets, and girder
rails, and at Joknstown, railway supphes 2 — 68.
Iiorain does not make the same or any of the same
products as IlUnois Steel Co 2 — 68.
LOWELLSVILLE LIMESTONE CO.—
Mahoning Limestone Co. will take over assets of CSCO. Dir.,
Feb. 5, 1906.
LUKENS IRON & STEEL CO.—
capital stock, $500,000; book value of property,
$6,000,000; were offered $8,000,000 a. year or two
after 1900 ii— 652-3.
trust or poohng agreement with 10 or 12 large steel
concerns produced by Eugene C. Bonniwell iO— 550.
deposited $7,500, and was allotted 1\ per cent of the
total production of the 11 companies, and paid
$3,386.01 for exceeding allotment Jan. 31, 1901 ii— 661-2.
feels effect of open market and Tr- '- " '
running out of 16
UNITED STATES STEEL CORPORATION. 4651
McCLUEE COKE CO. —
620 acres coal and improvementB at $850 or $900 per
acre, and 620 coke cars bought for $200,000 HCFCCO. Dir.,
July 8, 1895;
Sept. 30, 1895.
MAHONING LIMESTONE CO.—
CSCO. subscribed to 51 per cent of stock of CSCO. Dir.,
Feb. 5. 1906.
will take over assets of Lowellsville Limestone Co CSCO. Dir.,
Feb. 5, 1906.
MAHONING OEE & STEEL CO.—
CSCO. is owner of 20 per cent of capital stock of CSCO. Dir.,
Jan. 22, 1906.
MICHIGAN CENTRAL RAILBOAD—
$5,000,000 first-mortgage bonds of, treasurer of USSC.
directed to purcbaee at 104 USSC. Fin. Com.,
May 13, 1902.
$5,000,000 bonds sale of approved USSC. Fin. Com.,
Dec 9 1902
MICHIGAN IRON & LAND CO.—
lands of, Oliver Iron Mining Co. recommended to
take options upon 400^000 acres, question was re-
ferred to special committee USSC. Fin. Com.,
Dec. 22, 1909.
MIDVALE STEEL CO.—
concessions desired by CSCO., one of which is that we
want to be protected from Harvey U. Steel Co. to
the extent of the royalty on armor CSCO. Dir.,
June 27, 1904.
MILLIKEN BEOS.—
in hands of receivers; and rolling mills shut down,
and intention is to operate only structural plant.
They are in the market to buy 45,000 tons, in next
6 or 8 months and additional steel they may need for
new contracts. This tonnage they had figured on
making themselves, but it will now come to the
market and although it may not come to the CSCO.,
"but in any event it means that much capacity shut
down" CSCO. Dir.,
June 24, 1907.
to be taken out of receivership, and going ahead with
2 blast furnaces, billet, and bar mills. To use
ore and eastern limestone, and will have
to figure on getting coke out of Pittsburgh region. . CSCO. Dir.,
Nov. 9, 1908.
Milliken Bros, have located on Staten Island and
this will mean formidable competition in the export
business at least. They are still in the hands of the
receivers, but I understand are ready to be taken
out CSCO. Dir.,
Nov. 9, 1908.
MINNESOTA IRON CO.—
capital stock, $16,500,000 2—68.
owned ore Mesabi and Vermilion Ranges 2 — 68.
owned capital stock Duluth & I. R. RR 2—68.
owned large number of boats on lakes 2 — 68.
property of, stated Fed. Steel Co. Dir.,
Dec. 20, 1898.
4652 UNITED STATES STEEL COEPOEATION.
MINKESOTA IRON CO. — Continued.
sale of sfxjck of Winthrop Iron Mining Co., and Chapin
Mining Co., owned by this company, to the Min-
nesota Iron Co., and the acceptance in payment
therefor of promissory notes of the Pittsburgh Steam-
ship Co., and the increase of capital stock of Pitts-
biu'gh Steamship Co., and the purchase of said in-
creased capital stock by such notes, was requested
by Mr. Filbert, comptroller of the USSC.
The Pittsburgh Steamship Co. capital stock was in-
creased to $7,880,000, and the additional stock issue
of $6,550,000 was bought by the Carnegie Co. for
$6,550,000 of promissory notes of the Pittsburgh
Steamship Co., aggregating $6,550,000 CSCO. Dir.,
Oct. 25, 1909.
Missotrai WIRE & nail co.—
purchase of, through William Edenborn for ASWCO . . ASWCO. Min. Ex. Com.,
June 5, 1899.
MOA BAY mON CO.—
claim 160 or 170,000,000 tons Cuban ore 75—1028-9.
MONONGAHELA EIVEB CONSOLIDATED COAL
& COKE CO.—
contract with, to transport by barges this company's
products for 20 years, approved AWSCO. Dir.,
Nov. 13, 1904.
President Dempster offers River Coal Co. for sale for
$32,421,140 referred to Gary, Frick, and Perkins. . . . USSC. Fin. Com.,
Jan. 5, 1910.
contract with AWSC. recommended for execution. . . USSC. Pin. Com.,
Mar. 8, 1910.
contract with AWSCO. for 10 or more barges to carry
products of AWSC. until 1924, approved AWSC. Dir.,
June 21, 1910.
Monongahela B.iver Consolidated Coal & Coke Co.
purchase from 8,968 acres, at $850 per acre Dir., June 26, 1911.
contract with, at $850 per acre, for 8,988 acres HCFCCO. Dir.,
June 26, 1911.
MONONGAHELA KIVEE COAL & COKE CO.—
ships by river A — 156.
statement USSC. plans to acquire stock of Pittsburgh
and Monongahela coal companies A — 157.
MONONGAHELA SOUTHERN R. R. CO.—
bonds $3,000,000 issued and guaranteed by USSC. . . . USSC. Dir.,
Mar. 30, 1909.
MOORE & SCHLEY. 5ee aho "Tennessee CIRRCO.
Syndicate," etc., "USSC.-TCI. acquisition," "Ten-
nessee CI&BRCO.," etc.
Genebal (first loan from USSC: total loans; TCI.
held by Schley)—
are in business of financing business matters, and
do not take deposits; the buying and selling of
stock is not principal business 16 — 1221.
Payne had no interest in Moore & Schley firm. . 16 — 1117.
as a firm did not hold any TCI. stock as owners. . 16 — 1213.
never had a call for a loan without meeting it;
and also had large assets in their box beyond
the margin of the loans outstanding which were
margined, say, 3 per cent and perhaps more in
instances 16 — 1214.
never were unable to meet a \c2r. " "
Schley never did any busines^^^^^^"^^^^^"""^
UNITED STATES STEEL COKPOEATION. 4658
MOOEE & SCHLEY— Continued.
Gbner Ai — Continued .
USSC. loaned $1,200,000 second-mortgage bonds
to Moore & Schley for $2,000,000 stock on Oct.
23, 1900 5—127.
agreement between USSC. and Schley et al. for
exchange of $1,200,000 USSC. bonds for
$2,000,000 TCI. stock, dated Oct. 23, 1907 ^—181.
two weeks after the loan of $1,200,000 of USSC.
bonds for TCI. stock at 60, the USSC. bought a
majority of TCI. at 119.407 for USSC. bonds at
par i6— 1090-1092.
$33,000,000 were total outstanding loans of Moore
& Schley on Nov. 1, 1907 16—1211.
the amount that Moore & Schley had loaned must
have approximated the amount of money they
were borrowing, because they only borrowed
money to reimburse the amount of money they
loaned, and what they had remaining in their
box was the residuum and property of Moore &
Schley .Z6— 1211.
had securities including TCI. which they had
loaned upon to the amount of about $33,000,000 :?6— 1214.
never held any TCI. stock as a firm; but Schley
individually had originally 22,000, and took up
about 38,000 or 39,000 shares in 1907. Schley
bought stock when it was overpressed in the
market, to protect his own stock and keep the
market from breaking 16 — 1059.
Schley had 25,000 shares of TCI. stock himself. . 16—1219.
the firm of Moore & Schley had in their name up-
ward of 130,000 shares of TCI. stock, and had
been indebted to banks for $30,000,000 (Gary
says) ^—171.
owned only $5,000,000 of TCI. stock 20—1434.
amount of indebtedness secured by TCI. stock
was $5,000,000 or $6,000,000 (Gary) ^—172,186.
$5,000,000 or $6,000,000 was borrowed by Moore
& Schley entirely on TCI. stock. Schley as-
certained this fact by examining stock ledger
and finding loans aggregating 90,000 to 105,000
shares of TCI. and calculating that 50 per cent
was average allowed on the stock 16 — 1053-1054.
had borrowed $5,000,000 or $6,000,000 on TCI.
onNov. 1,1907 .?6— 1211.
they were borrowing on TCI. and if they had had
to put up other collateral, they would have
been embarrassed IS — 1219.
had received $6,000,000 of money on their TCI.
collateral. The banks were not loaning at par
on TCI .?5— 905.
they had a number of uncurrent securities which
had been defaulted upon 14 — 952.
Payne had taken over 15,000 TCI. in exchange
for current securities 14- — 952.
Payne loaned them marketable securities in ex-
change for uncurrent securities to extent of
several milUons of dollars 14 — 935.
were not borrowing on a majority of the TCI.
stock 16-122Z.
— lerial pressure
i6— 1220.
4654 UNITED STATES STEEL, COEPOBATION.
MOOEE & SCHLEY— Continued.
Gbnebal — Continued .
Perkins says he does not recall it was known that
they held a majority of TCI 20—1482.
banks were calling upon them to take out TCI.
and substitute better security (Gary) 4 — -171.
there was constantly pressure to take up TCI. col-
lateral on $5,000,000 or $6,000,000 loans 16—1214.
were also asked to shift other uncurrent secur-
ities; for instance, American Tobacco stock — 14 — 956.
their loans were not all call loans, but some time
loans 20—1479.
First National Bank (generally called the Morgan
Bank) loaned a considerable amount and never
objected to TCI. stock. But Mr. Baker, the
president, is Schley's brother-in-law .?4— 956.
they had a §2,500,000 loan from the First National
Bank, with $400,000 TCI. as part collateral, or
less than one-sixth of collateral 16 — 1111.
at other time had borrowed $3,000,000 from
First National Bank, which was reduced to
$2,500,000 i6— 1112.
percentage of TCI. in First National loan was not
their regular average in other loans ; and Schley
does not think the percentage of TCI. in the
First National Bank collateral would average
20 per cent i6— 1111.
had borrowed $2,000,000 from First National, but
amount of loan fluctuated and might have been
3 or 3i millions 16—1055.
borrowed from Chase National Bank and about
$200,000 of the borrowing was on TCI i6— 1212.
from Morgan & Co. they had a large loan of about
$2,000,000 or $1,500,000 i6— 1054.
Morgan & Co. never objected to the TCI. collat-
eral 14—Q5Q.
they borrowed from 20 to 25 banks with TCI. as
collateral 16—1212.
"we generally put in loans at about par, some-
times less, and then that loan was protected
with 30 per cent" 16—1212.
all banks were provided with 30 per cent margin
"and in that event, calling it 30 per cent, if we
borrowed $100,000, we had $130,000 collateral,
and if we borrowed $500,000, we had $650,000
collateral in the loan, and 70 per cent of that
$650,000 was in railroad and 30 per cent in
industrial " 16—1054.
when the market rose, they might have had 40
or 50 per cent margin upon their loans 16 — 1054.
all industrials were put in as part of the 60 per
cent of the security upon loans 16 — 1064 .
Republic common was refused by banks 16 — 1064.
the books will show from day to day the amount
and kinds of collateral and the percentage of
collateral which was put up upon loans 16 — 1064.
"Moore & Schley were the subject of attack,
serious attack, and their credit, which is the
life of the business, was being destroyed" 16 — 1220.
UNITED STATES STEEL CORPORATION. 4655
MOOBE & SCHLEY— Continued.
General — Continued.
when asked about the foregoing answer given by
him at the Senate investigation, Schley testi-
fied:
"Mr. Littleton. , In view of that answer, I put
the question to you: Were Moore & Schley the
subject of a general attack about that time in
the Street or the object of it? "
"Mr. Schley. I should think not, in the sense
that you could call it an attack. Moore &
Schley were rather prominent and they had,
among other things, Tennessee Coal & Iron.
They had Tobacco. They had Republic Iron
& Steel. I was a director in the Hudson Co.
Most of them had lost their borrowing capaci-
ties" i6— 1071-72.
Schley could not give any time when there was a
distinct demand to withdraw the TCI. as col-
lateral and put other stock in its place; and
was asked: Was there ever any such demand
made by any bank?" and replied: "Only in
a general way. In a general way the same
might be said of other stocks of that character."
"Mr. Littleton. Of other industrial stocks?"
"Mr. Schley. Yes. Tennessee was especi-
ally weak because of the situation in the
market, but Republic Steel common, of which
I had a great amount at that time, was refused
by the banks in the same fashion, but not quite
to the same extent that Tennessee Coal & Iron
was. I never saw anything specific, especially
in the demands that we had as to Tennessee
Coal & Iron" 16— 106i.
Schley never knew of a general drive made at
Tennessee Coal & Iron stock, and never saw
anything of that kind 16 — 1065.
they were not attacked because of their partici-
pation in the ownership of TCI. Schley said,
referring to that subject: "That is, possibly,
pretty well demonstrated in the fact that they
had $35,000,000 of loans out. Had I had
ordinarily good collateral I could have made
it $50,000,000, even in those hard times. I
would have had to pay high for them, up to
the market prices; but there was no especial
attack on us, but that we could have borrowed
money as well as anybody in the Street. That
was the amount of the business " 16 — 1072.
Schley says that if he had had $5,000,000 or
$6,000,000, he would have been happy, and he
explains that the offer of a loan of $5,000,000 to
Ledyard by Gary was on condition that there
should be collateral which Schley says was too
large in proportion and that it would leave
them in the same position 16 — 1075-76.
Schley, when asked if the panic situation would
not have been relieved if the USSC. had simply
taken that 100,000 shares of stock, said that was
not considered, and "Oh, yes, if I had had five
or six million dollars in real money I would
have been happy enough " 16 — 1214.
it was not suggested that USSC. should have
taken ITC. collateral for $5,000,000 or $6,000,000
=^^^^HH^^BH^^^iBKange, as this
inrity holding
I' in syndicate
and left the
4656 UNITED STATES STEEL COBPOBATION.
MOOBE & SCHLEY— Continued.
Dealings with holders of TCI. —
the opportunity to make the sale to the USSC.
came about by reason of the fact that they had
on their hands, as defaulted stock, that which
their customers could not cover, and they there-
fore were free to deal with that very stock and
able to bring about this trade 14 — 953.
the crisis and pressure upon them which caused
Schley to submit the proposition to sell that
defaulted stock to USSC. was before it was men-
tioned to the syndicate 14 — 94&-9.
Schley with Kessler had 53,000 shares of TCI.
stock outside of the syndicate ownership 16 — 1079
Kessler had borrowed money from Moore &
Schley on TCI. stock and the stock was in
Moore & Schley 's office, and Kessler told Schley
he could not pay, and Schley thought the
stock was dead. But Kessler afterwards gave
collateral consisting of real estate abroad 16 — 1079-80.
Ledyard suggests that a good many accounts were
in default. That people were in default on
margin and the broker would have the right
to deprive them of the account and close it up,
or to strengthen it. Suggested that Kessler was
short and failed to cover and that the same was
true of a large number of customers 14 — 948.
did not sell TCI. to save any syndicate members
from embarrassment 16 — 1218.
had a lot of stock that they were carrying as a
brokerage house, and had to be relieved of that
stock 14—9&2.
had 100,000 to 110,000 shares of TCI. on which in
a number of cases they could only borrow 50;
and they had borrowed at least between $5,000,-
000 and 86,000,000; and Ledyard says that
Mr. Joyce will be able to tell that they had in
their strong box §4,000,000 or $5,000,000 that
they could not market. The receipt of the
USSC. bonds, as equivalent to money, paid off
$5,000,000 or $6,000,000 loans and the addi-
tional stock to make up 110,000 shares held,
which would be $11,000,000 worth, plus what
was in the strong box, plus the TCI. they had
not been able to place, of which 2i millions
were in Col. Payne's hands 14 — 964.
Schley did not know how much of the $30,000,000
TCI. capital stock was hypothecated, outside
of $5,000,000 or .$6,000,000 hypothecated by
Moore & Schley .?6— 1213,
Moore & Schley had up as collateral 100,000 or
110,000 shares; and held other shares unused,
because the banks would not take any more. . 14 — 938.
had loaned upon more than 100,000 shares of
TCI., but were only able to place 100,000 out
to borrow upon X6 — 1214.
had more than 100,000 or 110,000 shares, which
they were carrying for customers, on which
they have made advances to customers, and
that when they came to rehypothecate this
stock there was only a certain amount of it
which the banks would take in their mixed
collateral upon their loans...
UNITED STATES STEEL COEPOKATION. 4657
tfOOBE & SCHLEY— Continued.
Dealings with holders of tci. — Continued.
half of the TCI. syndicate stock was borrowed on
from Moore & Schley as bankers 16 — 1206.
about 5 of the 16 syndicate members borrowed
money from Moore & Schley in 1907. A great
many of them owed mone}[ on TCI. at &st and
paid within a reasonable time 16 — ^1222.
Moore & Schley held some of the stock for others. 16 — 1218.
TCI. syndicate members who had borrowed from
Moore & Schley upon it were asked to take it
up, but could not place the accounts elsewhere . 16 — 1221.
various customers borrowed money from them on
TCI i6— 1072.
they would have the privilege of using any mem-
ber's stock if he owed them money on it as col-
lateral 75—878.
they were the owners or potential owners of a very
large amount of free stock, as aflirmed, because
of the default of customers 14 — 948.
some of the stock Schley was carrying was left in
Moore & Schley's name 16 — 1224.
some of the syndicate members left the TCI.
stock with them for safe-keeping 16 — 1212-13.
Ledyard did not know of the syndicate, but knew
the stock was pooled. He did not know how
much Schley controlled, but understood that
USSC. would not take less than a majority;
and did not suppose that a majority would be
sold and the minority left unprotected 14 — 953.
it would not have been possible to have bought
Moore & Schley's holdings and Payne's TCI.
holdings and leave out the other members of
the syndicate 14 — 965.
ErPECT OF SAVING
it was distinctly stated that if USSC. saved
Moore & Schley, by taking TCI. the bankers
would raise enough money to save the trust
companies jgO- 1479.
Perkins says on Saturday the Moore & Schley
transaction was discussed, and the trade was
that if the USSC. took the TCI. that would
relieve them, and if they took this stock out of
the banks the trust companies were at the
same moment to furnish the Trust Co. of
America and the Lincohi Trust Co. with
$15,000,000 on Wednesday morning. There
were two trades in one 2:2-1523; 20—1478.
Moore & Schley's books were examined by Mr.
Joyce, of J. P. Morgan & Co., and Mr. Tiemey,
of Moore & Schley, and another man, whose
name Ledyard did not know. This examiua-
tion was completed either Sunday night before
Gary went to Washington, or Tuesday night
(the holiday i. e., election day) after Gary
returned from Washington 14 — 939-40.
the books were examined by a representative
of the comptroller's or accounting department
of the USSC. andMr. Joyce i^^-960.
Joyce corroborated the facts stated by Schley of
what would be produced by pajrment of par
r rr^n-r . ^1. . ^ T . .1 — J >" --- ^ ~— eut was ttat
^^H^^^^^H^^^^^^^i^aufficient was
74-966.
4658 UNITED STATES STEEL. COEPOEATION".
iflOOEE & SCHIEY— Continued.
Effect of saving — Continued.
in order to ascertain how to restore them, it was
necessary to find how much TCI. they had
out as collateral. Ledyard says roughly they
had out 100,000 to 110,000 shares, or $10,000,000
or $11,000,000 TCI. at par l-h-946.
$5,000,000 loan offered by Gary through Ledyard
Schley said would be useless. 14 — ^937.
Schley explains that the offer of a loan of
$5,000,000 was on condition that they give too
large collateral and they would be left in the
the same position as before 16 — 1076.
Perkins says they were offered 90 or a loan of
$5,000,000 $2—1535.
they would not have been helped by taking up
the loans upon TCI. alone (Ledyard says) 14 — 947.
exchange for USSC. 5 per cent bonds gave them
bonds which could be turned into cash, while
TCI. was unsalable 76—1072.
first USSC. bonds turned over to Moore & Schley
on November 7, 1907. (Gary) .^—175.
Payne turned over to Moore & Schley USSC.
bonds received in exchange for TCI., amount-
to about 2J million dollars 14 — 954-55.
liquidated the USSC. bonds in order to reduce
loans and to avail of margin in stocks they had
pledged as collateral security for loans 14 — 955.
J. P. MOEGAN & CO.—
putthrough bond conversion of USSC 21 — 1510.
were financial agents of USSC 21 — 1510; 21 — 1584 .
■ depository for ASWCO ASWCO.Dir.,
Dec. 9, 1901.
refused to allow McCausland of CSCO. to place
National Steel notes in Pittsburgh upon renewal of
$2,107,000 at 4 per cent; but finally allowed $700,000
to be placed there provided they got as low rates
as in the East CSCO. Dir. ,
Feb. 3, 1902.
to charge one-eighth of 1 per cent for payment of inter-
est on bonds; and 3 per cent to be paid by Morgan
&'Co. on 60 per cent and 2 per cent on 40 per cent
of aggregate balances, or an average of 2/;; per cent
on aggregate balances USSC. Fin. Com., Sup.
Ext,
Jan. 12, 1904.
financuig proposition to CSCO. for 34,000, and "as
J. P. Morgan & Co. are financing the proposition,
this tonnage will undoubtedly come to us " (CSCO) . CSCO . Dir. ,
Mar. 22, 1909.
$10,000,000 par value of Ills. Steel Co. debentures
sold to J. P. Morgan* Co USSC. Fin. Com.,
June 26, 1911.
MOUNT PLEASANT WATEE CO.—
21 per cent of $31 ,000 dividends, 1901 N CFCCO . Dir. ,
Jan. 16, 1902. '
NATIONAL STEEL CO.—
was composed of Henry Wick's concern, at Youngs-
town, the Ohio Steel Co., and Mr. Rice's concern at
Newcastle j 42
made soft steel semifinished ■<" '-
did not have finished product,
Illinois
UNITED STATES STEEL OOEPOEATION. 4659
NATIONAL STEEl CO.— Continued.
merged with CSCO. and Am. St. Hoop Co CSCO.,
Mar. 30, 1903.
25 shares outstanding with Miss Edy, which she
wishes to hold, and 300 shares held by Post, Flagg
& Co., which can be got any time CSCO. Dir.,
Jan. 21, 1902.
NATIONAL TEANSIT CO.—
"connection of the Standard Oil Co. with new organi-
zation" considered in giving the National Transit
Co., a price of $1.50 instead of quoted price of $1.60. USCO. Dir.,
Apr. 30, 1901.
NATIONAL TUBE CO.—
capital stock $40,000,000 preferred and $40,000,000
common f — 69.
formed and owned by Morgan and friends 1 — 31.
owned Riverside Steel Co., tube works 1 — 31.
made its own pig iron i — 45.
was entirely independent concern before the organiza-
tion of the USSC ;?— 69,
J. P. Morgan had an interest in, in 1901 6 — 311.
would have been destroyed by tube mill to be built
at Conneaut by Carnegie Z4 — 1725.
minutes state that they would not displace neighbor's
products 18 — 1513.
minutes in reference to planned works at Conneaut,
intended to be built by Carnegie Co 18 — 1513-14.
new competition of Carnegie's projected tube works
at Conneaut stated Nat. Tube Co. Dir. Min.,
Jan. 15, 1901; 54—2358;
75-1311-12; 1-30; T. H.,
vol. 2, 1642.
put in its own blaat furnaces 24 — 1723.
NATIONAL WIEE COBPORATION—
New Haven plant offered to ASWCO ASWCO. Dir.,
Dec. 19, 1906.
being bankrupt, ASWCO. bought its machines at
New Haven, and Oakland, Cal., for $35,000 and
$7,500 ASWCO. Die.,
Mar. 16, 1909.
NEWBTTBG & SOUTH SHOBE BAILWAY CO.—
$200 per share dividend ASWCO. Dir.,
Dec. 9, 1901.
capital increased from $25,000 to $750,000 ASWCO. Dir.,
June 9, 1903.
NEW JERSEY STEEL & IRON CO., TRENTON, N. J.—
plant leased at an amount equal to 50 per cent of
dividends on stock of New Jersey Co AMBCONJ. Dir.,
May 16, 1901.
was in Structural Steel Association, wherein it agreed
to remain inoperative, and to receive $5,000 a
month 24 — 1720 (see Agreement).
«— 1813-14.
all assets sold to AMBCONJ. tor $674,736.92 and plant
leased for $13,766.67 AMBCONJ. Dir..
Sept. 17, 1903.
plant bought for $100 AMBCONJ. Dir.,
Mar. 15, 1910.
purchaaed by AMBCO AMBCONJ. Dir.,
June 30, 1911.
4660 UNITED STATES STEEL COEPOEATION.
NOEFOLK & SOTJTHEEN B. B. CO.—
is an old road and independent, running from Norfolk
to east of Raleigh 25—1696.
$3,250,000 was biggest loan of Trust Company of
America, made to Eward Sweet on imderwriting of
Norfolk & Souttem Bailroad Co 25— 169&-96 .
NOBTHEBN LIBEBTIES BAIL WAY CO.—
$140 per share dividend declared ASWOO . Dir. ,
^ Dec. 9, 1901.
NOBTHEBN PACIFIC BAILWAY CO.— See also Great
Northern Railroad,
had large holdings in Beraba S — 90.
OGLEBAY, NOBTON & CO.—
is a commission house 14 — 925.
mine 1,000,000 tons, and handled last year all told,
1,500,000 tons, sold through Oglebay, Norton & Co. . U—925.
OUVEB IBON MINES CO.—
Carnegie Co. contract to purchase ores of, from the
Lake Superior Cons. Iron Mines canceled CSCO.,
Feb. 24, 1902.
operates Ills. Steel Co. 's ore and limestone property at
Iron Ridge, Dodge Co., Wis , Ills. St. Co. Dir.,
June 11, 1902.
$200,000 of stock or one-sixth thereof bought from
USSC. for $2,250,000 stock of Carnegie Steel Co.,
New Jersey CSCO. Dir.,
Nov. 20, 1905.
Directors USSC. by letter to CSCO. directors suggest
declaration of 25 per cent dividend CSCO. Dir.,
Dec. 30, 1903.
contract with CSCO. for 11 tons of coke for one ton of
billets : ' 'This removes the possibility of their going
into the manufacture of steel, by taking the coke out
of the way" CSCO. Dir.,
June 27, 1904.
2,000 shares of stock of $2,250,000 par value of stock
of CSCO. bought CSCCDk.,
Apr. 3, 1905.
expenditure by, of $10,625,000 for stripping and min-
ing ore in Buffalo & Susquehanna mine in return for
traffic contract covering 19,000,000 tons of ore devel-
oped USSC. Pin. Com.,
Dec. 14, 1909.
PACIFIC STEEL & WIEE CO.—
Oakland, Cal., machines of National Wire Corpora-
tion, bankrupt, now at, purchased for $7,500 ASWOO. Dir.,
Mar. 16, 1909.
plant at Oakland, Cal., bought at cost less 12^ per
cent on machiaery and inventory less 10 per cent. . ASWCO. Dir.,
Apr. 19, 1909.
PAGE WOVEN WIEE CO. —
purchase referred to committee ASWCO. Dir.,
July 15, 1902.
PABK STEEL CO.—
signed sUdiug scale contract with CSCO CSCO. Dir.,
May 28, 1901.
contract with $1 higher CSCO. Dir.
Apr. 30, 1901.
PASSAIC EOLLING MILL—
bought
UNITED STATES STEEL COBPOBATION. 4661
PENCOYD mON WORKS—
was A. &P. Roberts Co 2.f-1711.
capital $1,000,000 stock, and $500,000 bonds 6—317.
bought pig iron and made structural material 6 — 317.
produced 200,000 tons of ingots a year, and 163,000
tons of structural material 6 — 318.
65,000 tons of bridge material and 180,000 tons from
rolling mills a year was output between 1890-1900. 6 — 318.
had a capacity of 65,000 tons a year at formation of
USSC 6—327.
PENNSTLVAITIA RAILROAD—
directors 6—330.
vice presidents (4) are also directors 6 — 330.
own stock in Pennsylvania Steel Co. and Cambria
Steel Co 6—330.
bought Pennsylvania steel and Cambria steel in order
to have the tonnage and to have its own supply of
rails 6—331.
is under two managements, one east and one west of
Pittsburgh 6—335.
tonnage of rails 100,000 or 130,000 per annum 6—335.
buys rails; 50 per cent from Cambria and Pennsyl-
vania Steel Co., balance largely from USSC.;
Bethlehem small tonnage because not on Pennsyl-
vania R. R 6—358-59.
|5,000,OOO^J months notes subscribed for USSC. Fin. Com.,
May 15, 1906.
(Note. — Not stated if this is Pennsylvania Rail-
road Co. or Steel Co.)
contract relating to construction and operation of
Connellsville Central R. R. Co USSC. Dir.,
June 2, 1903.
letters from Ramsay of Wabash R. R. and President
Cassatt of Pennsylvania R. R. referred to chair-
man (Perkins in chair) USSC. Fin. Com.,
Feb. 28, 1905.
Wabash R. R. special committee made report, ap-
proved USSC. Fin. Com.,
Apr. 4, 1905.
deal with for building northerly end of Masontown &
New Salemville R. R. to Brownsville on Mononga-
hela River USSC. Fin. Com.,
Feb. 24, 1903.
full report by Gary of negotiations with Pennsyl-
vania R. R. concerning proposed Wabash Railroad
Co .:..:. USSC. Fin. Com.,
Dec. 6, 1904,
Jan. 17, 1905,
Jan. 31, 1905.
agreement of AMBCONJ AMBCONJ. Dir.,
Mar. 15, 1909.
directors and vice presidents who are also directors,
named 6—330.
PENNSYLVANIA STEEL CO.—
claims 1,000,000,000 tons Cuban ore i5— 1028-9; i5-^04; 18—
1343.
$5,000,000 — 4i months notes subscribed for USSC. Fin. Com.,
May 15, 1906.
'^ " • " ' • IT, ^ Steel Co.—
= 6—330-31.
4662 UNITED STATES STEEL COEPOKATION.
PITTSBUIIG-BESSEMEE, LAKE ERIE B. R.—
stock to be exchanged between Carnegie Co. and Car-
negie Steel Co. in order to pay off balances partly
ill stock Carnegie Co. Dir.,
Apr. 23, 1900.
PITTSBUIIG COAL & COKE CO.—
purchase by USSO. of 7,500 acres coking coal of
P. Co. at $1,450 and 5,000 acres coking coal of
River Coal Co. at $850 to be paid for by bonds
issued on the coal guaranteed by USSC. This
enables P. Co. to effect complete absorption of River
Co. to be accomplished by issue of $8,000,000
5 per cent bonds of Pittsburgh Co. in exchange for
$7,500,000 preferred stock of River Co. held by
public and $5,000,000 of P. Co. common to be
exchanged for $5,000,000 common or River Co 4 — 159.
contract of USSC. with, took 19 per cent or 4,727,000
tons out of 24,250 tons 5—219.
contract of USSC. for 25 years ^—159.
USSC. guaranteed $6,000,000 5 per cent bonds
issued for stock of River Coal Co. $7,500,000 prefer-
red, $5,000,000 common of Pittsburgh Coal Co.,
issued for $5,000,000 common stock of River Co 4 — 159.
P. Co. contract better for USSC. than ownership of
P. Co., as USSC. get coal cheaper than coal can be
produced profitable 4 — 159.
river shipments of coal decreasing and rail shipments
itKjreasuig 4 — 159.
USSC. contract in Moody's Manual, 1905 .^—160.
contract was made when Pittsburgh Co. was in hard
condition and is unprofitable 4 — 162-63.
contract for sale 17,000 acres coking coal is distinct
from contract for steam coal with USSC 4 — 164.
USSC. or subs, purchased steam coal from Pittsburgh
Oo 4—155.
had large interests in the Monongahela River Coal Co. 4 — 156.
ships by rail 4 — 156.
USSC. has contract for 15-18 years 4—157.
statement USSC. intends to acquire stock of Pitts-
burgh & Monongahela Cos 4 — 157.
preferred stock $32,000,000 and common $32,000,000;
bonds $25,000,000 4—158.
purchased 1905, 300,000 shares common $15 a share,
and 50,000 shares preferred $45 of stock of River
Goal Co., making 380,000 out of 600,000 shares, and
giving it control of River Coal Co 4 — 158.
25-year contract with USSC. $1 for thick and $1.07
for thin, which cost $1.02, plus 14 cents dividend on
preferred and 10 cents a ton sinking fund, or total of
$1.26, showing loss on contract for 200,000 acres
with USSC 4—159.
purqhaae of lands of, referred to chairman and Frick,
Moigan, and Roberts with power USSC. Fin. Com.,
Mar. 28, 1911.
contract with HCFCCO. at $1,450 acre for 7,077 acres. . HCFCCO. Dir.,
June 28, 1911.
PirTSBTTRG HORSESHOE CO.—
bought by ASWCO. through Wallace H. Rowe ASWCO. Min. Ex. Com.
May 25, 1899.
UNITED STATES STEEL COBPOEATION. 4663
PITTSBUEG & OHIO VAllEY B. R. CO.—
to be incorporated and stock iesued to trustees for
ASWOO ASWOO. Min. Ex. Com.
Dec. 1, 1899.
$10 a share dividend, Dec. 31, 1901 ASWCO. Dir.,
Dec 9 1901
PITTSBTJBG STEAMSHIP CO.—
Bessemer Steamship Co. —
Ambeican Steamship Co. —
Minnesota Steamship Co. —
MxTTUAL Transportation Co. —
Menominee Transportation Co. —
All above companies requested to transfer all their
property to the Pittsburgh Steamship Co. upon
terms and conditions set forth in communica-
tion of James H. Hoyt to Francis L. Stetson,'
general counsel, under date Apr. 26, 1901. On
same date these companies transferred all their
property to the Pittsburgh Steamship Co USSC. Fin. Com.,
May 16, 1901.
directors of USSC. by letter to CSCO. directors,
suggest declaration of 100 per cent dividend by
Pittsburgh Steamship Co CSCO. Dir.,
Dec. 30, 1903.
PITTSBUEG STEEL CO.—
CSCO. to sell billets USSC. Pin. Oona.,
Apr. 11, 1905.
contract with, approved by USSC USSC. Dir.,
Apr. 25, 1904.
POST & McCORD—
relieved of obligations in view of contract with
AMBCONJ (see AMBCONJ.) AMBCONJ. Dir.,
Jan. 24, 1904.
POTTER ORE CO.—
separate company, operated for TCI. and Republic
Cos J— 18.
PRESSED STEEL CAR CO.—
with George A. Fuller Co. plan to control these con-
cerns by outside plate makers would be unforunate
for USSC. but plan for USSC. to obtain control of
them was left in abeyance USSC. Ex. Com.,
Apr. 17, 1902.
PUGET SOUND WIRE NAIL & STEEL CO.—
sale of Everett plant, and transfer of machinery to
San Francisco, Cal ASWCO. Min. Bx. Com.,
May 29, 1899.
REDSTONE COKE CO.—
HCFCCO. bought Moore's interest, HCFCCO. own-
ing the other two-thirds HCFCCO. Dir. ,
Oct. 24, 1890.
P.EPUBLIC COEIE CO.—
consolidated with River Coal Co., and capitalized
at $1,500,000. Consolidated company to l;e under
the name of Republic ConnellsviUe Coke Co., with
a capital stock of $2,500,000 Union St. Co. Dir. ,
Jan. 5, 1909.
operating contract with HCFCCO HCFCCO . Dir. ,
Mar. 22, 1909.
REPUBLIC IRON & STEEL CO.—
situated so as to make steel as cheap as TCI. & R. R. . 1 — 9.
running 2 furnaces and 1,000 coke ovens 1 — 19.
i.„-i;i;.. j:„_-D T .e, Q ri„ "-aMiVQllir oagood asTCI. . 1 — 19.
4664 UNITED STATES STEEL COEPORATION.
EEPTJBIIC mON & STEEL CO.— Continued.
does not make rails 1 — 48.
turned plant into making tin and sheet bars 1 — 48.
sells about 50 per cent of their ore 1 — 53.
has no agreement with USSC. as to prices, etc 1 — 57.
have holdings on Mesabi Range 5 — 89.
did not cooperate at last Gary luncheon 5— r271-72.
common stock to a great amount was held by Moore
& Schley, and was refused by banks, the same as
TCI 76—1064.
had Gates, Schley, Oglebay et al., as directors in
common with TCI. and had best of feeling and
unity of interest in this respect, etc 16 — 1114.
and TCI. and Sloss-S<^effield more favorably located
as to assembling materials than any other three
concerns in United States 16 — 1114.
ore properties are all leasehold 17 — 1240.
ore land was appraised at 39,041,800 tons, of which
8,000,000 was fourth class, 12,000,000 third class,
and 100,000 second class, and about 8,000,000 first-
class hard ore 15 — 978.
has approximately 2,200 acres 15 — 976.
1,400 acres of this is mineral bearing
had also in Tuscaloosa and Bibb Counties, estimated
at 10,000,000 tons first-class ore running 45 to 55
per cent, as against average for other ores of about
36 per cent 75—976-77.
has 173,542,000 tons of merchantable coal, with total
acreage 16,000 acres 75—977.
operate mines at Negaunee 7 — 394.
most of its material comes over the Penn. R. R. and
Lake Shore 77—1245.
ships from Mesabi over USSC. roads and Hill roads. . 77 — 1240.
in transportation is paying tribute to the extent that
rates charged by railroads exceed a fair rate con-
sidering the cost per ton-mile 77 — 1243.
transportation statement for 1910 over various roads. . 77 — 1241.
traffic manager is of opinion that all rates are too
high from all districts named in Republic statement
on p. 1240, vol. 17 77—1242.
does not export 77 — 1271.
our prices May 24, 1911 77 — 1265.
lowered jjrices recently for the purpose of meeting
competition and with the hope of increasing the
volume of business, and in that they were suc-
cessful 77—1263.
Topping, of Republic Co . , did not attend the luncheon
of Gary after Republic cut prices 77 — 1265.
smaller mills shut down and steel tonnage concen-
trated in Youngstown mills CSCO. Dir.
Feb. 3, 1903.
has rail miU at Youngstown, but is not making rails. 77 — 1288.
makes pig iron at Youngstown and Birmingham, but
at Yoimgstown it is made for steel, and foundry
iron is made in the South 77 1248-49.
made steel rails up to 1905 77 1262.
principal products in competitionXwith USSC. are
steel bars andisteel incrudejorms 77 ;
1262-63.
UNITED STATES STEEL CORPORATION. 4665
EEPXIBIIC mON & STEEL CO. — Continued.
will be making plates in short time; building a new
mill for bolts, butts, pipe and tubular products. . . IT- — 1263.
Can not afford to push CSCO. and if they push the
Carnegie Co. the Carnegie Co. will push them all
along the line CSCO Dir.,
Nov. 12, 1901.
Corey wants agreement with Kepublic Co. put in
definite shape so that there can be no discussion
in the future CSCO. Dir.,
Nov. 12, 1901.
EIVEIl COAL CO.—
offered for sale by Monongahela River Consolidated
Coal & Coke Co. for 132,431,140, referred to Gary,
Frick, and Perkms USSC. Fin. Com.,
Jan. 5, 1910.
EIVEESIDE STEEL CO.—
owned by National Tube Co 1 — 31.
made its own pig iron 1 — 45.
A. & P. ROBERTS CO. {See also Pencoyd Iron Works.)-
was Pencoyd Iron Works 24 — 1710.
purchased by AMBCONJ AMBCONJ. Dir.,
June 30, 1911.
were in Structural Steel Association 24 — 1710.
plant leased at rental equal to net income of plant less
cost of additions AMBCONJ. Dir.,
Apr. 1, 1905.
plant bought for flOO AMBCONJ. Dir.,
Mar. 15, 1910.
ST. CLAIR FURNACE CO.—
bonds $3,000,000 guaranteed by USSC USSC. Dir.,
May 3, 1904.
ST. CLAIB STEEL CO.—
bonds $2,250,000 guaranteed by USSC USSC. Dir.,
May 3, 1904.
SCHOEN STEEL WHEEL CO.—
bought by CSCO. for $650,000 cash, $945,000 first
mortgage 5 per cent gold bonds of Schoen Co., and
CSCO.'s guaranty of $1,350,000 outstanding bonds
of Schoen Co CSCO. Dir.,
July 2, 1908.
SCHOENBERGER STEEL CO.—
purchased by ASWCO. for $3, 600,000 ASWCO. Min. Ex. Com.,
Mar. 13, 1899.
property transferred to ASWCO ASWCO. Min. Ex. Com.,
Dec. 28, 1899.
SHARON COKE CO.—
leased to HOPCOO. for one year HCFCCO. Dir.,
June 15, 1908.
property transferred and leased to CSCO CSCO. Dir.,
June 15, 1908.
SHARON TIN PLATE CO.—
purchase of 2,985 out of 3,245 shares recommended
by USSC. at $153.17 USSC. Fin. Com.,
Feb. 4, 1903.
purchase of 2,985 shares (leaving 260 shares outstand-
ing:) reported by American Tinplate Co USSC,
Feb. 18, 1903.
a subsidiary of Union Steel Co S — 123.
4666 UNITED STATES STEEL CORPOEATION.
SHELBY TUBE CO.—
plants named 25—1635 .
could not buy semifinished goods from USSO. and
then -was purchased by them SS — 1635.
is only live competitor of the National Tube Co. and
between them they own all the patents for seamless
tubing «— 1639.
cost $4,000,000 25-1639.
purchase negotiations 2S — 1635-39.
could make 50 per cent 25—1639.
USSC. refusal to sell billets in 1901-2 Lutz's letter, USSC. Pin
Com.,
June 15, 1903.
CSCO. has contract with Shelby Co. which "was very
favorable to the Carnegie Co., inasmuch as the
latter could so arrange the price of steel that it
would be rather difficult for the Shelby Co. to con-
tinue in business " USSC. Ex. Com.,
Apr. 20, 1901.
Chairman (Gary) "expressed the opinion that he
would a great deal rather have that company in
business under our control than to absorb them". . USSC,
Apr. 20, 1901.
"suggested that some arrangement could be made
with Miller with a view of maintaining prices, and
that some prices now could be advanced by both
companies" USSC. Ex. Com.,
Apr. 24, 1901.
1 share preferred USSC. for 2J shares preferred Shelby
Co.; 1 share common USSC. for 4 shares Shelby Co.
Total Shelby preferred stock $5,000,000 and $8,150,-
000 common stock USSC. Fin. Com.,
Aug. 8, 1901.
sale of USSC. Fin. Co.,
Jan. 12, 1904.
should run over 100,000 every month besides pro-
tecting the National Tube Co USSC. Ex. Com.,
May 20, 1902.
SHENANDOAH STEEL WIRE CO.—
plant adjacent to Allegheny Steel Co. referred to USSC. Fin. Com.,
Sept. 11, 1906.
SHENANGO FTTBNACE CO.—
freight bills due DMNRR. paj^able Oct., Nov., and
Dec, 1909, carried over until Feb., Mar., and Apr.,
1910, at 5 per cent USSC. Fin. Com.;
Dec. 21, 1909.
SLOSS-SHEFFIELD IRON & STEEL CO.—
has 581,946,700 tons of merchantable coal 15 — 977.
has red ore amounting to 2,690 acres, estimated^to
contain 51,395,500 tons is — 978.
has brown ore estimated to contain 26,575,000 tons in
one deposit north of Birmingham, range 14 east,
township 15 south 15 — 978.
do not form part of the Birmingham competition,
except that they make pig iron and ship to the
same market 15 — 978.
has best of feeling for TCI 16 — 1114.
and TCI. and Republic I. & S. Co., more favorably
located than any other concerns in US. as to assem-
bling materials le — 1114.
makes only pig iron 1 — 20.
has 132,000 tons pig iron
UNITED STATES STEEL, COKPOBATION. 466T
SNYDEB LIMESTONE CO.—
leased USSC. Fin. Com.,
May 2, 1911.
SOUTHWEST CONNELLSVILLE COKE CO.—
Illinois Steel Co. owned 85 per cent of stock of Ills. St. Co. Dir.,
Dec. 10, 1895.
has two properties "Southwest" of upward of 2,000
acres and Revere' ' property of 2,382 acres of coal,
and 400 acres of surface; the Revere property
valued at $1,000 per acre Ills. St. Co. Dir ,
Dec. 10, 1895.
SOTTTHWEST WATER CO.—
one-half interest sold to Oliver & Snyder Steel Co. . . USSC. Ex. Com.,
Apr. 29, 1902.
STANDARD OIL CO.—
"connection of the Standard Oil Co. with the new
organizatioT " considered in giving National
Transit Co. price of 1.5 cents, instead of quoted
price of 1.6 cents CSCO . Dir.,
Apr. 30, 1901.
protected Carnegie Co. and Carnegie Co. enjoyed trade
in plates with National Transit Co., a department
of Standard Oil Co., to amount of 150,000 tons per
annum .?§- 1313.
contract with, referred to by Mr. Bope CSCO. Dir.,
Apr. 3, 1911.
threatened to build its own pipe mills, and were
given a price 5 per cent below prevailing prices,
or if market should break, then price to be fixed
through an arbitrator USSC. Ex. Com.,
July 15, 1902.
breaking up of, is warning to other corporations, says
Perkins 2Z—lb27 .
sold ASWCO. 600 to 700 barrels (42 gallons each) per
day of fuel oil at 2 J cents per gallon ASWCO . Dir. ,
Mar 1 1902
STEAMSHIP COMPANIES. (S^ee " Pittsbmg Steamship
Co. ") USSC. steamers go to various Lake ports, in-
cluding Conneaut 8 — 447.
3 boats of Weston Transit Co. bought by Pittsburg
Steamship Co. for $840,000 USSC. Fin. Com.,
Feb. 28, 1911.
price $410,000 for 4 ore boats USSC. Fin. Com.,
Oct. 11, 1904.
STRAITS TRADING CO.—
Phelps, Dodge & Co. had some control over this com-
pany, and it would be well to confer with them if
anything turned up USSC. Ex. Com.,
June 25, 1901.
J. S. STRICKLER COKE CO.—
bought by HCFCCO HCFCCO. Dir.,
June 10, 1890.
SUBSIDIARY companies-
Divided AND CLASSIFIED —
1. Relation to USSC
2. Previous conditions. (See USSC.)
3. Stock, capitalization, bonds, and values
4. Reasons for maintaining
5. General management of subsidiary companies
6. Financial management of subsidiary companies
7. Management of officers of subsidiary companies
8. Sales of raw and unfinished material
9. Miscellaneous
4668 UNITED STATES STEEL. CORPOKATION.
SXTBSIDIABY COMPANIES— Continued.
Relation to USSC. and previous condition. (See
USSC.)—
Linabury states that where USSC. owns all stock,
the subsidiary is merely a department 9 — 520.
directories to be reduced to comparatively small
number USSC. Ex. Com.,
Apr. 9, 1901.
subcompanies have independent directors and
officers, but should not be competitive with
USSC 2—64.
directors of subcompanies chosen by stockholders 2 — 65.
officers of subcompanies chosen by directors ;? — 65.
suggestion as to choice of subofficers from USSC.
would be followed ^ — 65.
there is no competition between subcompanies. - S — 102-3.
have officers and boards of directors because they
manage better than simply managers of de-
partments S — 103.
subcompanies could be separated from control of
USSC 5—103.
these companies could be put under absolute con-
trol as an operating company by USSC S — 103.
but this might be against Northern Securities de-
cision; many were putting out finished product
at time of organization of USSC 1 — 45.
threats on part of those who bought steel to make
it i-45-46.
threats on part of those who bought fuel to make
it i^5-46.
Stock, capitalization, bonds, and values —
$620,352 par value of stocks not held by USSC - . . 9—520.
subsisiary companies, additional capital added
to USSC. by sale of stock of subcompanies 22 — 1553.
statement to be furnished of properties owned by
subcompanies when taken over by USSC S — 121-22.
capitalization at which they went into USSC 5 — 256-57.
capitalization and valuation and amount of stock
issued therefor by USSC 5—258.
capital stock outstanding of various companies;
bonded debt U—1757.
bonded debt U~n57.
values as compared with what was paid by the
USSC 5—293.
Reasons for maintaining —
subcompanies by combination into larger con-
cern became more valuable 5 — 296.
maintained because States require reports and
base taxation upon business done in State 9 — 520.
State laws provide that certain kinds of business
must be carried on by domestic corporations. . 9 — 521.
have a large sum of money in central bank 5—104.
could not do one-half or one-fourth of export
business if separated 5 — 104.
General management op subsidiabt companies —
different subcompanies manufacture same prod-
ucts, and have same mill price 2 — 65.
price fixed by one company for others 2 — 65.
all producing the same artif.i-^° '— ^i — Trgo/-!
formed and there has been f^
that..
UNITED STATES STEEL COKPOEATION. 4669
SUBSIDIABY COMPANIES— Continued.
Gbnbbal management, etc. — Continued.
Carnegie Co. and Illinois Steel Co. each make
some of the same class of products 3 — 104.
CSCCO. will sell a great deal to constituent com-
panies of USSC CSCO. Dir.,
May 21, 1901.
goods of to be given preference by purchasing
agents Min. Gen. Sal. Man.,
June 19, 1901.
prices 5 per cent less than lowest market rate on
products used in work for reshipment to trade. Gen. Man. Sal. Min.,
Apr., 1902.
5 per cent discount abrogated and lowest market
price charged Gen. Man. Sal. Min.,
May, 1902.
have parallel cost sheets 3 — 104.
Financial management of subsidiary companies —
"all expenditures over $10,000 must be approved
by the executive committee in New York"
(Corey, president, Carnegie) CSCO. Dir.,
Apr. 23, 1901.
profits of subcompanies is measured by the pro-
duction of all 2 — 64.
net income of subcompanies is practically the
gross income of the holding company 9 — 519.
surplus net profits $55,669,099, Apr. 1, 1901, to. . . USSC. Dhr.,
Jan. 7, 1902.
pig iron and scrap due constituent companies is
carried as an obligation, and this accounts for
the big gain shown in obligations to constituent
companies. This we have never carried before. CSCO. Dir.,
Sept. 6, 1909.
if one subcompany makes little or no profit,
profits of other subs are not raised to make it up . 3 — 104.
dividends are declared by subs and given to
USSC 2—64.
declare dividends as independent concerns,
which are paid to USSC. as stockholder 9 — 519.
$50,000,000 nonnegotiable 5 per cent notes from
subcompanies authorized by USSC USSC. Fin. Com.,
Nov. 11, 1904.
Management op officers of subsidiary compa-
nies—
officers' and employees' interests in outside con-
cerns to be inquired into by committee USSC. Pin. Com.,
May 29, 1906.
advertising men to meet together from time to
time Gen. Man. Sal. Min.,
Dec. 15, 1909.
data of consumption of sub-coproducts used to
advise of location of new plants Gen. Sal. Man. Min.,
Oct. 23, 1907.
data of purchases kept by purchasing agents Gen. Man. Sal. Min.,
Feb. 16, 1910.
Mr. Thomas (U. S. Steel Products Co.) said that
offices of subcompanies are to be empowered
to take up any export business arising in their
territory Gen. Man. Sal. Min.,
Sept. 20, 1911.
Bales of raw and unfinished material —
taw material not to be sold to regular trade Gen. Sal. Man. Min.,
Mar. 21, 1906,
Apr. 18. 1906.
4670 UNITED STATES STEEL. COBPOEATION.
SUBSIDIABY COMPANIES— Continued.
Sales op baw and unfinished material — Con.
not to sell semifiniahed products to outsiders in
competition with subcompanies who are manu-
facturing finished products from such semi-
finished products without the consent of the
subsidiary company interested USSC. Pin. Com.,
Apr. 5, 1904.
Carnegie and National companies are not to sell
unfinished material to competitors CSCO. Dir.,
July 1, 1902.
Miscellaneous — ■
operation of plants report by president USSC. Fin. Com.,
Feb. 7, 1905.
indictment for wire pools is against individuals
who are officials and representatives of one of
the USSC. subcompanies iO— 595-96.
statistics of mining, manufacturing, and trans-
portation USSC. Dir.,
May 6, 1902.
TENNESSEE COAL, IRON & R.B.CO. (See also VSSC. -TCI. Acquisition, "Moore
& Schley," "Schley," "Perkins," "Gary," etc. ^feo All specific headings, such as
"Ore," "Ore Land," "Coal and Coal Land," "Pig Iron," "Transportation;" and
also general headings, such as "Cost," "Prices," "Profits," "Steel," "Compe-
tition," etc.) —
Classified and divided as —
1. Tennessee Coal, Iron & Railroad Co. Syndicate and acquisition. .
2. Capitalization
3. Values and improvements
4. Improvements through stock issues
5. Improvements, ore, coal, etc
6. Ore and ore land
7. Ore
8. Ore and coal
9. Coal
10. Appraisal committee •
11. Surface land
12. Markets and transportation
13. Pig iron
14. Production
15. Transportation and earnings
16. General
Syndicate and acquisition of Tennessee ( "o. (See
also TCICO., infra.)
About $30,000,000 stock was total capitalization,
or 300,000 shares. 100,000 to 110,000 shares
Schley had pledged; 25,000 shares held by
Payne, 10,000 shares in the syndicate un-
pledged, and 15,000 held as collateral for
securities loaned to Schley, making 25,000
more. Total, $13,000,000outofthe$30,000,000. 1—14; 74—943; 76—1206.
outstanding stock at time of syndicate was
$22,500,000, or about $1,000,000 of preferred
and $22,500,000 common 76—1206.
property purchased Oct., 1905, and syndicate
agreement made Nov. 27, 1905 is — 842, 917-18.
Schley was one of the organizers of the syndicate
in Nov., 1905. The syndicate received stock
bought and turned over by the members. The
managers were: Charles S. Guthrie, Grant B.
Schley, and Leonard C. Hanna. George Kessler
sold these three gentlemen a large interest in
TCI. in 1905, amountin'? to 118,500 shares, in-
cluding the holdings of alLjmemViprH nf tV,o
original syndicate. The
$22,500,000, making 22o,00(
was then selling or quotec^
sjmdicate paid 110
UNITED STATES STEEL COEPOEATION. 4671
TENNESSEE COAL, mON & B. B. CO.— Continued.
Syndicate and acquisition op Tennessee Co. —
Continued.
syndicate members subscribed and paid for
their own stock, wbich was taken and carried
through Moore & Schley. Each holder was
at liberty to and in many instances took his
own stock and kept it 16 — 1043-44.
syndicate agreement was entered into later 16 — 1044.
Gates, J. W., in TCI. syndicate 1—3.
syndicate members named amount of shares
200,000 or more 1—5.
Gates held 18,000 shares TCI 1—6.
Gates held 24,000 shares TCI. after new stock
issue 1 — 15.
syndicate obtained control 1905 and held until
1907 13— 8G6.
syndicate holding 118,500 shares were: O. H.
Payne, L. C. Hanna, Grant B. Schley, J. R.
Duke, E. J. Berwind, J. W. Gates, A. N. Brady,
C. A. Kessler, O. Thome, E. W. Oglebay, H .S.
Black, F. D. Stout, J. W. Simpson, G. W.
French, S. C. Cooper, and J. A. Topping IS— 853.
syndicate members and holdings 16 — 1208.
there were 100,000 outstanding free shares IS — 854.
syndicate held two-thirds of stock, i. e., 118,500,
plus 40,000 and odd shares, plus increases by
new stock issued IS — 854.
syndicate included the following who were
familiar with the iron and steel industry:
Gates, Oglebay, French, Cooper, and Topping,
and thus included men of practical experience
to develop the business IS — 887.
syndicate agreements produced 13 — 901, 917 — 918.
syndicate had a right to sell at a profit, but not at
loss 1 — 14.
syndicate agreement prevented Schley from sell-
ing his stock 13 — 881.
syndicate stock placed with Moore & Schley
mainly to prevent a sale, and during develop-
ment of property it was of advantage to retain
control 15—851-52.
syndicate managers had power to sell at a loss. . . IS — 852.
syndicate agreement prevented a sale of majority
without consent of Schley and Hanna 17 — 1237-38.
Purpose of agreement was to keep stock out of the
market so as to maintain control of it 16 — 1237.
Syndicate were not prohibited from selling stock
unless aU of it was sold 16 — 1099.
syndicate could not sell without consent of both
managers 16 — 1099.
syndicate agreements provide that managers may
hold, sell, borrow upon, etc., TCI. stock, and
then continue; "and ultimately to dispose of
the same by sale or by exchange for the stocks,
bonds, or other issues of any other corporation
now existing or which may be formed here-
after," etc 15—917-18.
agreement was to terminate following February,
" ■ ' - active in de-
serty, and in
*ed to an ex-
15—908.
4672 UNITED STATES STEEL COEPORATION.
TENNESSEE COAL, IHON & E. B. CO.— Continued.
Stndicatb and acquisition op Tennessee Co. —
Continued.
when syndicate agreement ended, and was not
extended, the members could do as they chose
with stock, and it might have come into the
market IS— 908.
syndicate's principal object was to hold the stock
as a total and was to last two years and was ex-
tended 16—1207.
syndicate was to hold stock two years and got an
extension ifi— 1208.
syndicate had 118,300 shares (Gary) 5—128.
no specific 118,500 shares was set off as syndicate
stock, but the individuals who owned the stock
Eut some of it into Moore & Schley's office and
orrowed money on it; and that stock was the
same as what has been referred to in the testi-
mony as free stock 16 — 1048.
syndicate got 118,300 shares 76— 1206.
syndicate originally was 118,300 and later pur-
chase of 50,000 16—1208.
syndicate had about 70 per cent of TCI. after-
wards 16— \209.
50,000 shares new stock added to 118,500 shares
original stock made syndicate holdings 168,500
shares 16— I0i5.
second syndicate was formed to buy 50,000 shares
on the street and 120 or 130 was paid for 50,000
shares. Neither Payne, Hanna, Schley, Duke,
Berwind, Gates, Brady, nor Kessler had any
share in the second allotment. Schley had
about 5,000 shares and Kessler had part of the
50,000 shares of the additional stock bought on
the street ?/;— 1045-1046.
50,000 shares additional stock was bought and
second syndicate of 50,000 shares former by
original men and some additional men. There
were about 30 members 16—1044-1045.
20 per cent of the second call, or stock issue of 12 J,
was paid in 14 — 926.
fact that Kessler was owner of the additional
stock was disclosed to every man who bought
it. Second syndicate anioement was about a
year after the first (Aug. 27, 1906, 13-918) i6— 1047.
a considerable portion of the second lot of 50,000
shares was carried on loan, and some of it was
loaned on by Moore & Schley afterwards.
Moore & Schley in turn used the stock along
with other securities in negotiating loans IG — 1050.
one-half of the 50,000 shares was left with Moore &
Schley for loans and in turn hypothecated by
them .?6— 1049.
150,000 shares approximately were on Moore &
Schley's books as subject to loan, or which had
been loaned upon 16 — 1050.
100,000 to 105,000 shares had been borrowed on
by Moore & Schley from banks, but the amount
was fluctuating 16 — 1051.
Schley owned shares on which he borrowed 16 — 1051.
Moore & Schley had other TC
they did not borrow and oi^«^^^^^^^^^"i""— =^
not borrow
UNITED STATES STEEL, CORPORATION. 4678
TENNESSEE COAI,, IBON & B. B. CO.— Continued.
Stndioatb akd ACQtrieiTioN or Tennessee Co. —
Continued.
Btock was put in as security for loans in lots of
200, 300, or 500 shares, at 50 or 60, along with
other securities for loans of 1, 2, 3 or $500,000,
which would be secured by 70 per cent of active
raihoad stock and 30 per cent of industrials. . . 16 — 1052.
stock was put in at 90 or 80, and then with 30 per
cent ofi Drought it down to 50 or less 16 — 1052.
no loans were solely supported by TCI. stock,
because they would have had to pay an enor-
mous interest 16 — 1052.
the TCI. stock was spread around as part of the 30
per cent of industrials, and Schley says you
could not say that the TCI. stock could be taken
out of the loans and something else put in its
place. It would be called the sweetening of
of the loan 16 — 1052.
Schley does not remember whether in 1905 he
made loans strictly on TCI. stock 16—1052.
205,715 shares was controlled by the syndicate.
This is calculated as follows: "Omitting that
possible increase by the purchase of the first
and second increase of new stock, these pur-
chases (i. e., 17,775 shares of first issue; 19,441
shares of second issue, 16 — 1061) the original
syndicate, the second syndicate, and the in-
crease of 15 per cent of new stock twice on
118,500 shares" amounted to 205,713 shares. . . 16—1062.
297,562 shares had been issued at the time of the
sale of TCI. Syndicate party owned 205,716
shares. This left about 91,846 shares. Kessler
and Schley held the most of this. All that the
two syndicates did not have, Schley and Kess-
ler had the great majority of i6— 1062-1063.
290,000 shares in existence, at the time of the
sale; and about 190,000 in the syndicate.
These figures might vary 10,000 shares from the
figures named IS — 904.
Kessler had syndicate and free stock IS — 857.
Kessler had 42,000 or 43,000 shares 16—1080.
Schley had originally 22,000, but in 1907 had
about 38,000 or 39,000 shares i6— 1059.
large amount of syndicate stock, and a majority
of it was in the hands of syndicate members in
their own boxes 16 — 1059.
Hanna says a very considerable portion of the
syndicate stock was locked up in strong boxes . . 13 — 889 .
syndicate acquired a majority because it was
cheap and with no purpose of a merger 16 — 1179-80.
after agreement, only small amounts were traded
in i7— 1238.
acquisition by syndicate had a tendency to ad-
vance price of TCI 16—1287.
syndicate bought 36,000 shares in the market,
which would tend to strengthen the price, as
would also the fact that the syndicate had
trusteed the stock 13— 802.
Moore & Schley would have privilege of using
— ^_T — >„ „<■ — 1. ;<T. — „„j '■^->m money on
13—878.
4674 UNITED STATES STEEL CORPORATION.
TENNESSEE COAL, IRON & B. B. CO.— Continued.
Syndicate and acquisition of Tennessee Co. —
Continued.
Kessler had 27,000 shares, 10,000 of which applied
on his syndicate allotment and 17,000 sharoa to
his own private account IG — 1056.
Schley and Kessler's shares were outside the syn-
dicate except for about 14,000 shares each. . . . 16 — lOGO.
syndicate paid 110 IS — 851.
syndicate gave 110 tor old stock and Rot par for the
new and old combined, which reduced the cost
from 110 to 107 and a fraction 16—\222.
average price paid for syndicate stock may have
been 107 or 108 IS—im.
syndicate bought 82,000 shares at 110 and balance
up to 118,500 between 106 and 110 ;5— 860.
syndicate paid $110 per share for 82,000 shares of
TCI, neither purcnaser nor sellens being in
any way constrained by linaiicial roaHons, and
the syndicate felt that it would be worth that
by future development, although as a going
proposition it was not IS — 872.
syndicate prici^ was HO and market price 95 at
time of syndicate, syndicalc price went to 128. . 16 — 1180.
Moore & Schley held a niajority of TCI. for syndi-
cate 5—138.
if not recited in syndicate agreement, it was
always the understanding that no stock would
be sold except the whole syndicate Imlding.
Syndicate did not wish to Jiave a minority IS — 890.
$10,000,000 or $11,000,000 of new stock was pro-
vided for, of which aljout $7,000,000 was actu-
ally issued, and about .1)3,750,000 provided for,
on which the first installment had been paid on
Oct. 15, preceding the sale to USSC. There
were to be 4 or 5 installments of about 20 or 25
per cent each, and .fS, 200, 000 odd was taken
out of an issue of $3,750,000 ;5— 900-901
USSC. paid for 20 or 25 per cent of the last issue,
the installment for which had been paid in
October preceding sale IS — 901.
Schley got up the second syndicate. Schley put
in some portion of the stock he held into the
second syndicate, and Kessler did the same. . . ^6— 1057.
the individuals in the syndicate held their stock
all through. The syndicate had no control of
the stock 16— I0h%.
syndicate was good strong organization, perfectly
able to carry out the plan 14 — 928.
syndicate reputed to bo wealthy men 17 — 1229.
both first and second syndicates were financially
well-to-do men, who had not bought for specu-
lation 76—1112.
syndicate bought the property as a permanent
investment to develop, and not as a specula-
tion 7.^—927.
syndicate purchased to develop the property and
increase the dividends 16 — 1180.
syndicate was formed to develop the property. . . 16 — 1044.
syndicate purpose was to develop the property. . 16 — 1206.
syndicate believed mineralw ■ —
easily assembled, and witli c
they could convert it prnfiti^= —
UNITED STATES STEEL COBPOEATION. 4675
TENNESSEE COAL, lEON & B. E. CO.— Continued.
Syndicate AND acqihsition of Tennessee Co. —
Continued,
syndicate was composed of men who under aver-
age conditions were amply able financially to
carry it IS— 862.
syndicate was not speculative, but composed of
strong men 16 — 1206.
increased stock by calling on original stock-
holders i6— 1206.
increased stock used to improve property 16 — 1206.
syndicate spent $6,000,000 to $8,000,000 while
they held property 1 — 8.
syndicate stood in a position to protect the stock. . IS — 901-2 .
TCI. stock was selling at $120 to $160 and USSC.
2dB at 80 and 85 1—6.
syndicate members were possibly with different
banks and USSC. men were officers and direc-
tors of banks, and they fixed price of TCI. at
par, when it was claimed the banks were re-
jecting it as collateral below par 13 — 907-8.
syndicate as experienced iron and steel men and
USSC. agreed that TCI. was worth par, when
banks would not retain it as security below
par IS— 907.
proposal to obtain steel bonds to relieve the sit-
uation, without giving up all the stock in TCI.,
or the control thereof, was discussed, but with-
out success 13 — 890.
iyndicate were reluctant to sell 14 — 963.
syndicate did not want to sell 14 — 945.
pressure was against members of syndicate.
Hardly any individual was exempt from pres-
sure. There was no other desire to sell TCI... 16 — 1215.
syndicate were involved financially (Mr. Gard-
ner) 14—963.
syndicate might have sold Oglebay's stock 14 — 930.
Oglebay never heard that there was a drive on
TCI 14—931.
USSC. loan of $1,200,000 of bonds in exchange
for TCI. stock was dated Oct. 23, 1907, and
final transfer of TCI . was on Nov. 7, 1907 i6— 1092.
Schley had no legal right under the syndicate
agreement to exchange $2,000,000 TCI. for
$1,200,000 USSC. bonds 13—859.
holders had borrowed on their stock, Perkins
states 25—1616.
about one-half of syndicate stock was borrowed on
from Moore & Schley as bankers 16 — 1214.
Moore & Schley had loaned upon more than
100,000 shares TCI., but was only able to place
100,000 out to borrow upon i6— 1214.
all syndicate members paid for their stock and then
borrowed upon it, and all of them to whom
Moore & Schley had loaned money to take it
upon, but it was hard for them to place it else-
where iS — 1221.
stock was pledged to amount of $6,000,000 5—129.
Schley stated to Gary TCI . was on deposit as col-
1-'-— J f 1- gg "nr. r,nr^ „- J.g nnn r.nn 5_X30-1.
4676 UNITED STATES STEEL COEPOBATION.
TENNESSEE COAL, mON & B. B. CO.— Continued.
Syndicate and acquisition of Tennessee Co. —
Continued.
$6,000,000 loan to Moore & Schley by USSC. and
$3,000,000 guaranty fund were proposed in con-
Bideration of the sale of TCI. going through. . . 14 — 951.
offer of 90 and loan of $5,000,000 was made to
Schley, but that would not save them, and
offer of par was made £2 — 1535-0.
negotiations began at price 10 points below what
was ultimately netted IS — 904.
Hanna did not hear of Gary's offer to loan
$5,000,000 IS— 8Q7.
stock had had a poor reputation in the street, and
the bupiness had not kept pace with the indus-
try, and property was not well regarded and
price had been marked well up, and the stock
was known as a peg stock, because the majority
was held under a syndicate agreement for a
specified time. These were causes of condem-
nation as collateral of TCI i5— 903.
Gates states cause depression TCI. stock 1 — 9.
was not good at the banks, because it had a very
limited market, it had ore in the ground with
limited earning capacity, but there was a dearth
of buyers i6— 1098-90.
TCI. stock was not salable and was not good col-
lateral security S — 150.
TCI. security was inadequate for loan 4 — 182.
clearing house claimed Trust Co. of America had
too much TCI .^186.
stock was held by Trust Co. of America 1 — 15.
$500,000 held by Trust Company of America was
merely a drop in the bucket as far as the diffi-
culties were concerned 22 — 1535.
was put in as collateral, generally at par, and then
the loan was protected by 30 per cent (Schley) . 16 — 1212.
too much TCI. in assets of firm in panic of 1907 . . . 1 — 9.
Perkins says the suggestion was made in panic
that if TCI. stock was taken out of the collateral
in loans it would allay the panic, and that
someone suggested that USSC. might take
these securities 16 — 1184.
they were calling every day for Schley to put up
other securities for TCI 76—1217-18
was uncurrent although it had great value, and
was therefore not desirable collateral 16 — 1109.
syndicate members were entirely indifferent as to
its market value, and did not care whether it
was current or uncurrent, because they were
not selling J6— 1113-4.
stock was not salable and banks called loans on
TCI. stock (Gary) 5—129.
was not sold and its quotation was artificial ; 134
price was a bid price when no stock was for sale
(Perkins) 25—1621-22
TCI. stock would not have gone down in panic
unless unduly depressed , Gates said 1 — 15 .
opinion that a deliberate drive was made against
TCI. to knock down the price so that USSC.
could get it
Schley never knew that there 1
drive against TCI
UNITED STATES STEEL, COEPOEATION. 4677
TENNESSEE COAL, IRON & B. R. CO.— Continued.
Syndicate and acquisition of Tennessee Co. —
Continued.
although there was no drive against TCI. , ground-
less rumors can be just as damaging as when
they are well grounded IS — 1072.
Hanna says the stock was peg stock, because con-
trolled by a syndicate, and not much sold on
the exchange, although nominally sold for 120
to 130; but some was actually purchased by
syndicate holders at 120, 18 or 20 months prior
to the sale and also prior to the first payment on
the new stock issued 13 — 855.
Hanna could not answer that the stock had depre-
ciated, but on account of being pegged Wall
Street shied at it 13—856.
was not as good collateral at banks as Republic
stock or tobacco stock, because it did not have
BO active a market 16 — 1100.
Gtary, Morgan, and Frick were trying to acquire
TCI. stock for about 119f per cent of USSC.
sinking fund 5's (second-mortagage bonds) 1 — 5.
Hanna insisted that minority stock should be
taken, and USSC. agreed to do so 13 — 898.
stock was sold at 119, when USSC. second-
mortgage bonds were at 84 13 — 898-99
USSC. paid on basis of par in cash, and bonds
were 84, which gave $11,904.76 in bonds for 100
shares of TCI i6— 1221-3.
filial trade was $840 of bonds for $1,000 of TCI. or
$100 of bonds for $100 of TCI ■?— 133.
syndicate received USSC. 5's on basis of 119 par
value of bonds for each share of TCI 16 — 1180.
USSC. bonds were taken at 84 for TCI. at 119 .. . i-^— 946.
cost USSC. bonds at par as against $110 per share
of TCI 13— ma.
absorption was merely a change in stock owner-
ship 17—1254.
intrinsic value was not important $0 — 1479-80.
Gates says in TCI. transfer not a dollar changed
hands, and no bank received any assistance by
reason of absorption of TCI 1 — 9.
no bank received any assistance by virtue of
absorption of TCI i— 9.
effect of transfer of TCI was simply a transfer of
securities — not a dollar changed hands 1 — 12.
no money passed at the sale ; it was an exchange
of stocks for bonds 13 — 857.
sale had a very beneficial effect upon the market. 13 — 857.
USSC. paid market value of bonds and par for
stock. Syndicate considered that they got 100
for what they paid 110 for; but as $7,000,000
new stock had been issued after original pur-
chase for 110 the sale of all the stock at 100 did
not cause a loss of 10 points on all the stock. . . 13 — 899.
syndicate lost money ($10 or $15 per share) be-
cause USSC. bonds sold down to 78 1—14.
syndicate members would only lose money on the
sale if they sold the USSC. bonds at a low price. 14 — 927.
in Perkins's opinion the TCI, stock was not of
^ ;;;; tssc. second-
'. hanged for it,
£f— 1560.
4678 UNITED STATES STEEL, COEFOKATION.
TENNESSEE COAL, lEON & R. B. CO.— Continued.
Syndicate and acquisition op Tennessee Co. —
Continued.
quotedat 168 in 1906, and Nov. 1, 1907, at 134,
Perkins says this was an artificial quotation,
supported by main strength, because this stock
did not swing with the market 25 — 1615.
financial condition of TCI. at time of acquisition
(Gary) 5—143-4.
TCI. was entirely solvent at the time of the sale. . 17 — 1864.
as collateral was actually exchanged for USSC.
bonds, and no money passed, but the bonds
were substituted for the TCI. in the Moore &
Schley loans, and also the bonds were largely
sold 7^—946.
financial situation was steadied by willingness of
banks to take USSC. bonds as a substitute for
TCI. There was no market for TCI. and sale
of 12 shares would have broke the market 10
points, and sale of 5,000 shares would have
doubled that number of points IS — 909.
Gates regarded sale of TCI. as forced sale 1 — 14.
sale regarded as a forced sale 1 — 12.
sale forced because of large amount of TCI. stock
held in one trust company 1 — 13.
sale was a bargain sale 1 — 13.
value of, Mr. Gates paid $108 and was not willing
to sell for $150 i— 13.
Gates offered $150 by Morgan and refused for TCI . 1 — 13.
Kessler received $160 per share / — 10.
Mr. Bartlett suggests that USSC. exchanged what
was more valuable security, i. e., USSC. bonds
for less valuable TCI. stock in panic time ^3 — 1603.
as collateral was continued in use in loans up to
the end 1 6—1064.
there was no difference in TCI. from any other
industrial stock, as regards its limited use for
collateral i6— 1064.
there was no difference as regards the limitation
upon the use of TCI. for collateral from what
existed as to any other industrial stock of a like
kind, except that in 1907 there was a more
general tightening up on collateral than there
had been m 1905 and 1906 76—1064-65.
Schley, when asked if he knew any case where
a bank just prior to, or during the panic, de-
manded the withdrawal of TCI. from any loan,
said, "I think that happened," but could not
say what bank, nor whether more than one
bank 76—1065.
Schley can not name any specific bank that
called loans in part secured by TCI. or
requested the elimination of TCI. from the
collateral; but says: "It was done frequently
by all of them " 76-1063.
was not good collateral in 1905, 1906, or 1907 76—1063.
Schley said (p. 1068) that he did not remember
of any distinct -n-ithdrawal of TCI. stock from a
loan and the substitution of a standard security
in its place; but when his attention was called
to his testimony before the " — '- "'---'•-- —
Committee, citing requests b ~
TCI. out of loans he stated
frequently" (p. 1069)
UNITED STATES STEEL COEPOEATION, 4679
TENNESSEE COAL, IRON & E. K. CO.— Continued.
Syndicate and acquisition of Tennessee Co. —
Continued.
banks did not know that Schley bought TCI. at
130 16—1069.
Morgan offered to buy TCI. through Kessler when
it was $150-$160 (in panic it was $120-$140),
and Gates declined 1 — 15.
stock in panic was |120-$140; stock might sell
for |110-$115; stock might cost to buy |150 . . . i— 16.
Schley telephoned Hanna on Sunday preceding
the sale to USSC. that banks had asked for
substitution of other collateral for TCI IS — 854.
syndicate took the initiative in the exchange of
TCI. for USSC. bonds IS— 876.
Morgan suggested purchase of TCI. by USSC. . . 1 — 9.
negotiation to sell TCI. stock 1 — 4.
syndicate L. C. Hanna and G. B. Schley traded
^TCI. stock for USSC. 58 1—20.
was sold to save Moore & Schley and also similar
firms «— 857.
Knickerbocker Co. failure occurred about two
weeks before TCI. sale 13—010.
Schley and Hanna as syndicate managers decided
to sell TCI. Monday morning, and the papers
were signed on Wednesday following at mid-
night IS— 882.
sale was not completed until Gary got bac.k from
Washington 13—883.
Hanna and Schley were told that the others were
not ready for the conference, but it was not
suggested that they were waiting for Gary,
alfliough Hanna was told at noon that Gary
had gone to Washington IS — 883.
Schley in negotiating sale at Morgan Library did
not know that delay was caused by Gary and
Frick were considering the legality of the pur-
chase, and had gone to Washington, leaving
him waiting 16 — 1106-8.
reason for conferring with President was (as stated
by Perkins) "because we felt as a matter of
common knowledge that there was much criti-
cism then by the administration and in other
quarters about these large corporations and
what they could legally do, and we felt it was
simply a matter of ordinary good sense to go
directly to the President and lay the situation
before him and see how he regarded it," and
in reference to consulting lawyers, Mr. Perkins
stated: "They had not consulted lawyers dur-
ing the two or three days at time of negotia-
tions," and "I would like to say that I do not
think it would have made any difference. We
had been consulting lawyers, and all Ameri-
cans had been consulting lawyers for years,
and we have not yet found any lawyers who
have been able to tell us really what we could
do under the law as it stands. That is one of
our troubles " es—1605.
Gary and Prick just got to Executive Office in
White House at 9.30 a. m. Monday morning
when Perkins telephoned and spoke to Perkins
iH-rinc TCI.
^^^^^^^^^m^^^mi "1"ph"Tl"'l to
under all the
ntfirfere, etc j?5— 1606.
4680 UNITED STATES STEEL COEPOEATION.
TENNESSEE COAL, lEON & K. R. CO.— Continued.
Syndicate and acquisition op Tennessee Co. —
Continued.
purchase -would have been unneceesary if USSC.
bonds had been loaned to Moore & Schley
(Gary) 4—170.
the announcement from Washington that sale
would be made to USSC. relieved panic (Gary). 4 — 176.
and real substitution was not important (Gary). . 4 — 176.
Hodge as stockholder objected to acquisition
(Gary) 4—178.
no cash consideration in purchase, except that
USSC. paid several hundred thousand dollars
debtottheTCI. Co. (Gary) 4—179.
immediate cause of TCI. deal was not panic con-
ditions (Gary) 4—179 .
there was no cash consideration, except USSC.
had to pay indebtedness (Gary) 4 — 179-180.
contract as to loan to Jloore & Schley (Gary) 4 — 181.
Gates arranged for payment of calls on him when
he left for Europe in June preceding October
panic 77-1238.
deal was closed before Mr. Gates's return on Nov.
6 (election day), Wednesday, but agreement
for sale was signed after Mr. Gates's return 4 — 190.
before Oct. 23, when Schley borrowed $1,200,000,
the Morse and Heinze banks had failed 16 — 1105.
Schley remembered that on Oct. 26 or 27, Roose-
velt congratulated Secretary of the 'Treasury
for coming to the rescue of the New York
banks, and also the bankers for checking the
panic. But is not sure of the date nor of the
gates of the closing of the Knickerbocker Trust
Co., and the advancement of $60,000,000 by
Rockefeller and Morgan. He remembers that
the panic got worse after the last-named ad-
vancement 16 — 1105-6.
when TCI. was sold and Schley was asked if the
panic had not been checked, he said he did
not know what may have happened and did
not think so 76—1106.
Roosevelt's statement that panic had been
checked by Secretary of Treasury and bankers
and advancement of $50,000,000 or $60,000,000,
Schley says it would seem, was mistaken 16 — 1106.
Ledyard says there is an error as to proposition by
him of $6,000,000 loan, and that there was no
suggestion of a loan from individuals, except
from Ledyard 14 — 952.
Gates compelled purchase of minority stock by
resolution of USSC 1—5.
USSC. offered to take additional stock for 15
days at same price 4 — 190.
minorit); holders regarded it as a privilege to
come into the sale to the USSC 14 — 966.
was worth 65 and no more, but USSC. paid $35
per share more, or $11,900,000 in $34,000,000
for it 4—191.
loan of $3,000,000 would not have been in interest
of USSC. stockholders 5—239.
deal and panic conditions . .
New York World editorial .Tin
date and history of 1907 pani—
UNITED STATES STEEL, COEPOKATIOlSr. 4681
TEimESSEE COM, lEON & R. B. CO.— Continued.
Syndicate and AcaxrisiTiON or Tennessee Co. —
Continued.
USSC. was selected as a purchaser alone, because
they were in position to develop the property
and about the only ones in existence, as stated
by Mr. Schley, but he later said that it was
sold to USSC. because they had a valuable
bond to give that was interchangeable into
money, and there was no other possible pur-
chaser, and no other concern engaged in the
manufacture of iron in the United States that
had sufficient assets to take over the TCI.; and
the only concern in the United States that
could take over the TCI. and was big enough
to handle it, was the USSC 16—1114.
"it was natural to consider that when they
(USSC.) took it they wanted the control,"
says Schley ' 16 — 1215.
Payne suggested to Schley sale to USSC 16 — 1077.
Schley went to Ledyard and they went to USSC.
to negotiate for purchase by USSC. of stock. . . IS — 876.
Schley called in Ledyard and said that Payne
had suggested that Ledyard see Morgan to lay
before the USSC. the proposal for the acquisi-
tion of the TCI i^— 934.
Payne told Ledyard that Moore & Schley, who
were largely indebted to Payne, had a great
lot of TCI. stock in their loans "and that the
banks, or some banks, had asked for substitu-
tion of collateral upon that stock" because it
was regarded as a pooled or pegged stock,
with only nominal quotations, without any
real transactions occurring in it, and was a
stock of a character that a bank could not
realize upon in a time of panic, and he said
he did not see any way for Moore & Schley
to be saved, except through the acquisition
of that stock by the USSC 14-933-34.
Payne said TCI. would be an extension of the
USSC. business, and they might be induced
to purchase 14 — 934.
Payne suggested to Schley that Ledyard be
asked to' see Morgan to get him to lay thi
proposition before the USSC 14 — 934.
Schley told Ledyard that he could influence
the majority of TCI., and he did not know
but that it would be a good idea to sell it at
par 16—1080.
Schley had no definite con versa tion with Hanna
about selling TCI.; however, he testified,
"but I think there had been a general — I
had a general idea that he would be willing
to pay with it." But when attention was
called to the evidence that TCI. had been
bought for development and not for specula-
tion, Schley said: "You can hardly place the
condition of a man's mind on any one specific
thing — hke the Tennessee Coal & Iron Co.
The best man, if he was a man of means and
a man of parts; if he was not particularly
distressed personally himself, and he had half
a dozen friends on his back, and he thought
i^^^HaH^^^^^^^^^^^^bout a more
^^r— =,^^_^^_rsell" 16— 1080-L
4682 UNITED STATES STEEL CORPORATION.
TENNESSEE COAL, IRON & E. B. Co.— Continued.
Syndicate and AcauisiTioN of Tennessee Co. —
Continued.
Ledyard did not know of the syndicate, but
knew the stock was pooled 14 — 953.
syndicate members were of opinion, according to
Schley, that pressure was so strong they wanted
relief, and he asked Ledyard if Morgan people
would buy this stock at par 16 — 1207.
Ledyard says that Payne did not tell him there
was a syndicate; but Ledyard had referred
just before making this statement to the syndi-
cate as follows: "Then there were 25,000 shares
held by Col. Payne — 10,000 shares in the sin-
dicate," etc. Payne told him, he says, the
stock was known to have been purchased by
a party of individuals, etc. Ledyard went to
Morgan only with the brokers' stock held on
margin 14 — 943.
Ledyard did not know how much Schley con-
trolled i4— 953.
Ledyard understood USSC. would not take less
than a majority, and did not support that a
majority would be sold and the minority left
improtected 14 — '953.
Topping spoke to Ledyard merely to state facts
as to TCI. for Schley 77—1263-4.
Topping first learned that the project was to sell
the TCI. stock on Monday afternoon or Mon-
day morning 10 a. m 17 — 1258.
Topping's statement to Ledyard was made in
view of the desire to substantiate the value of
Schley's stock 77—1258.
Topping sold TCI. because he did not want to
remain a minority stockholder 17 — 1258.
offer to TCI. to Chas. Gates by broker said to be
from USSC. for option l—\0.
TCI. had been offered to USSC. two or three
years before panic tS — 1604.
was offered to USSC. many times S — 126.
was offered by Lewis Cass Ledyard 5—126.
stock was offered by Keasler at 130 to Morgan . . . 3 — 127.
Nov. 2, 1907, Gary met Lewis C. Ledyard, coun-
sel for Oliver Payne, at Morgan's library S — 127-129.
Ledyard told Frick that he had gone over Moore
& Schley's books with their bookkeepers and
with Schley, and had done what he could to
familiarize himself with their affairs, and he
told Frick that no less than par for TCI. would
help Moore & Schley; and Frick said that
Ledyard'a say so was enough for him 14 — 949.
Gary said he thought the stock worth only one-
half of 130 5—127.
Gary loaned Schley §1,200,000 second mortgage
USSC. bonds and received 52,000,000 TCI.
stock, Oct. 23, 1907 5—127.
negotiations between Schley, Ledyard, Gary, and
Frick for sale 16 — 1081^.
Ledyard told Gary that they could get TCI. at $25
a share if they waited, but by the time it
reaches $25 a share the TTRsn ^^-u ~.^<- 1-- -•-
the market to buy anythinfj
UNITED STATES STEEL, COEPOKATrON . 4683
TENNESSEE COAL, IRON & E. E. CO.— Continued.
Syndicate and acquisition of Tennessee Co. —
Continued.
Gary said he thought 60 was high enough price
for TCI .^6— 1083.
Moore & Schley: The sale of TCI. for USSC.
bonds enabled Schley to sell his own bonds and
Kessler's, which brought $12,000,000 into his
hands i6— 1084.
$12,000,000 realized from sale of USSC. bonds
enabled Schley to pay off "all those loans."
This did not pay off those odd millions of loans.
It paid oft $12,000,000 worth .?6— 1084-.5.
the situation was that Moore & Schley had a great
amount of money borrowed from banks and the
banks had not called on Schley to pay those
loans; they had not specifically requested
Schley to take out any particular collateral
and substitute other collateral; they made no
drive on TCI. stock as such; there had been
no pressure put upon Moore & Schley by the
banks on their loans 16 — 1086.
Schley and Kessler owed Moore & Schley
$7,000,000 or $8,000,000, which were secured by
a large amount of Schley's securities of about
the same value 16 — 1087.
the effect of paying $12,000,000 out of the
$35,000,000 of loans, bringing down the total to
$23,000,000, brings 30 or 35 per cent or what-
ever margin was up of collateral security into
your possession (30 per cent of $12,000,000 is
$3,600,000), that strengthens you and makes
your loans less. Moore & Schley were
$5,000,000 richer, with much less loans and
within 35 days impregnable 16 — 1029.
a loan of $12,000,000 would have accomplished
the same result 16 — 1089.
if Schley had accepted Gates's offer of $3,000,000
of bonds and the USSC. offer of $5,000,000 or
$6,000,000, tbat would have relieved the situa-
tion very largely 16—1089-90.
USSC. loaned $1,200,000 entirely upon TCI. at
60, USSC. selected the TCI. stock out of a
number of others offered as security for the
loan, which was to become a sale if not paid at
the end of six months. That loan was made
about three months before the October settle-
ment, and when the exchange was made that
stock passed as a sale. This stock, which had
been taken at 60, was finally exchanged at
110.407, and it was taken in exchange for bonds
at par 76—1090-1.
Perkins says: "It was brought out that the two
trust companies involved were saved, as well as
Moore & Schley, in connection with the pur-
chase of the Tennessee Coal & Iron stock, and
that they were in trouble because of the Ten-
nessee Coal & Iron stock; that I do not think I
have testified to before this honorable com-
mittee; I could not, because it was in no sense
true. The taking over of the Tennessee Coal
& Iron Co. by the United States Steel Corpora-
tion had no connection directly with the 'Trust
St Co 2f— 1523.
4684 UNITED STATES STEEL COEPOBATION.
TENNESSEE COAL, IRON & K. E. CO.— Continued.
Syndicate and acquisition op Tennessee Co. —
Continued.
Perkins says on Saturday ( ) the
Moore & Schley transaction was discussed, and
the trade was that if the USSC. took the TCI.
that would relieve them, and if they took the
stock out of the banks the trust companies were
at the same moment to furnish the Trust Co.
of America and the Lincoln Trust Co. with
$15,000,000 on Wednesday morning. There
were two trades in one ^^ — 1523.
Saving Trust Co. of America depended on
whether USSC. took TCI. If they did that,
then the bankers as their share would put up
$15,000,000 to Lincoln Trust Co. and Trust Co.
of America 20—1485.
it was not any more necessary to exchange TCI.
stock for USSC. bonds than it was to exchange
the stock of the Republic Co. or any other of
the industrials which formed the 30 per cent of
the collateral for loans, and there was just as
much reason for trying to negotiate a sale of
other industrial stocks as TCI., except that
TCI. formed a larger amount, and Moore &
Schley had an euormous amount of TCI., but
Schley can not say what percentage of the 30
per cent collateral made up of industrials was
TCI. There waa a good reason for Schley to
sell TCI., because it relieved his friends and
his office 16—1073-A.
loan of USSC. bonds would not have served the
purpose, because a bond selling at 84 could
only be used to borrow 60 or 62, while exchange
for the bonds permitted an immediate sale at
about 84 ;6— 1075.
forty-seventh report by committee of which
Schley was member was substantially correct. . 16 — 1215.
Capitalization —
capital stock: $32,529,997.50 common; $124,500
preferred; bonds, $14,330,100 g— 70.
money owed by USSC. not capitalized, $10,167,-
708.50 2—70.
capital stock was $22,300,000 and $7,000,000 new
stock, with $3,750,000 additional to be issued
at the time of the syndicate; and $29,000,000
odd at the time of the sale to USSC 13—862.
three issues of stock were authorized. The third
issue was in course of issue, and two calls of 15
per cent each had been made. This brought
the total stock issued up to $29,400,000 i6— 1060.
stock increase was three calls, one of 15 per cent,
payable in five installmente, another of 15 per
cent, and the last installment was 12^ per cent,
which would be 15 per cent of $22,500,000 and
then 15 per cent of the additional amount 16 — 1222.
capital increased from $22,000,000 to $50,000,000. 77-1229.
2 calls were made of aggregate amount of some-
thing like 35 per cent 77—1229.
$8,000,000 brought in by calls 17—1229.
had issued $7,000,000 of new stock prior to the
issue of October 15, 1907 wViir^v, v,<.ri Koon
financed by the Btockhol^^H^B^^^^^^K=r -
cost to the company
UNITED STATES STEEL COEPOKATION. 4685
TENNESSEE COAL, IBON & K. E. CO.— Continued.
Capitalization — Continued.
$3,200,000 new TCI. stock subscribed for about
the middle of October, just at the beginning of
thepanic 13—912.
issued new stock to make improvements 14 — 927-28.
Gayley knew six months before the acquisition all
mat he could know about the TCI . ore reserve . 7 — 402.
about six months before the acquisition, Gayley
recommended to Frick that it would be a good
acquisition from the standpoint alone of its
raw material 7 — 402.
Value and improvements —
Frick was opposed to acquiring TCI. except at a
low price, and $50 a share was mentioned. At
that time the shares were selling considerably
above $100 7—402.
net income 1907 was $1,426,864 1S—S83.
that was income after charging off depreciations
and extraordinary replacements and taking oft
$825,500 for interest on bonded and floating
debt 13— 8H.
new improvements totaling seven or eight mil-
lion dollars were made during all of 1906 and
1907 15—884.
improvements were made in 1907, and there was
in process of construction a very considerable
amount of new improvements 13 — 884.
plant as purchased in 1903, by reason of im-
provements, had enhanced very much in value 13 — 884.
old plant was torn down and renewed, which in-
creased its value, because they built a modem
plant as against an old, worn-out, out-of-date
plant; and after charging off the depreciations
and displacements they still had a net income
for 1907 of a million and a half dollars 13—884.
when purchased, mines were in good condition;
coal mines fair, blast furnaces old, except two
new, steel plant, rail mill, and rolling mills old . 13 — 345^6.
map of property explained by Topping 17 — 1235.
substantially all of the plant was reconstructed
while property was in the hands of syndicate. . 17 — 1236.
proceeds of sale of stock put into improvements
amounted to $6,000,000 i7— 1229.
Sept. 30, 1907, general statement i7— 1230.
put a small part of the profits back into the prop-
erty ^4 — 022.
additional money for development was obtained
by the sale of stock. First call was 35 per cent,
second call 12J per cent (one-third of which
was taken in October before sale to USSC),
making in all 47i per cent allotted for sale.
Stockholders paid par for new stock in cash. . . 14 — 922.
$7,000,000 or $8,000,000 realized from sale of
Improvement through stock issues —
stock used for improvement 14 — 922.
Oglebay thinks it is a good property 14 — 923.
Oglebay was told by Topping and Hanna that
TCI. had to be sold to USSC. to save Moore &
14-923-4.
4686 UNITED STATES STEEL COEPOKATION.
TENNESSEE COAL, IRON & K. B. CO.— Continued.
Improvement through stock issues — Continued.
Oglebay had no idea nor those connected with
him of holding this stock and selling for a big
price 24—924.
it was the idea that they would go right along and
improve the property 14 — 925.
$7,000,000 had been spent by syndicate on plants. 16—1210.
expended over $7,000,000 when owned by the
syndicate, which money was obtained by in-
crease of stock and sale thereof. The stock
was taken almost entirely by the syndicate,
and the underwriting syndicate of the first two
issues did not get a share, but every stockholder
got his pro rata porportion IS — 892-3.
$5,000,000 or $6,000,000 had been expended
under the direction of Mr. Topping and a halt
dozen other most capable men 16 — 1114.
there was not any better steel plant than that at
Ensley. The tJSSC. carried it out on the same
plan, and could not improve upon it (Schley) . . 16 — 1114.
was much more valuable after the syndicate had
spent $5,000,000 or $6,000,000 in improvements
on it, and syndicate proposed to mcrease its
value by improvement as a permanent invest-
ment and not to sell the securities. The pur-
chase of it, by reason of the value of the prop-
erty and the increased value by reason of the
improvements, added materially to the value
of USSC. securities. And when TCI. holders
recei\ed USSC. securities in exchange for
TCI. the USSC. securities by reason of that
fact became more valuable 16 — 1104.
syndicate spent $7,000,000 upon the property,
and intended to spend more IS — 849-50.
was bought by original syndicate solely for devel-
oping IS — 845.
financing was not done through bankers IS — 845.
Improvements and ore, coal, etc. —
the payment of the last issue of new stock for
improving TCI. would have completed the im-
provement of the property as contemplated by
the syndicate at that time 14 — 931-2.
earnings justified 4 per cent dividends IS — 861-2.
earned about $1,000,000 a year for dividends, but
had no money for improvement 17 — 1228.
under Topping's management earned $1,500,000
or over ;7— 1229.
earnings Nov. 1, 1907, 1911: 4 per cent on com-
mon and 4.8 per cent for three years previous. .5 — 144.
paid 4 per cent dividend 16 — 1180.
new stock issued was for cash paid in for better-
ments, and 4 per cent was not a large interest on
the entire stock issue IS — 899.
paid only 4 per cent dividends, which made 120
or 130 a high price ;.J— 856.
syndicate was putting earnings back into the
property. If all earnings had been put into
dividends and stock put upon market, a clever
manipulator might have increased the price. . . IS — 856-7.
issued no bonds, and fiTianr ■ - - -
valuation $49,842,295 (^mitl
UNITED STATES STEEL GOEPORATION. 4687
TENNESSEE COAL, lEON & R. R. CO.— Continued.
Improvements and ore, coal, etc. — Continued.
real value was in the ore and coal IS — 866.
60 to 70 per cent of southern ore land held by
TCI 75—1001.
has 50 to 60 per cent of entire Birmingham district,
including all kinds of ore 15 — 1014-15.
percentage held by old Birmingham district ore
would depend upon calculation of the addi-
tional ore not now capable of competing, which
may be more cheaply produced 15 — 1027-28.
Oeb land. (See also "Ore" and "Ore land.")
total acreage in surface and mineral rights —
^ Acres.
Alabama 340, 263
Tennessee 105, 740
Georgia 1, 420
Total 447, 423
statement from Annual Report USSG. (Gary). . . S — 124.
estimate of 700,000,000 tons of ore, about 400,000
of which was usable 1 — 1 25.
Moody's Manual gives about 450,000 acres ^ — 124.
estimated to have 400,000,000 to 500,000,000 tons
of ore, but the property had not been drilled to
the point where positive figures could be made . 13 — 908.
700,000,000 tons of ore held, about 400,000,000
tons on top of the other and usable 9 — 487.
has about 200,000,000 tons of ore usable now 5—150.
Given says he would have to make calculation in
order to determine the total amount of available
ore in the Birmingham district. The state-
ment that TCI. has 50 to 60 per cent is merely
an estimate, based upon his knowledge of the
district 75—1019-20.
holdings were mainly fee holdings 17 — 1227.
fee ownership and cheap cost of assembling were
chief advantages in cost 17 — 1227.
was second to only one company in the world as
to iron ore, coal, and limestone owned in fee. . 16 — 1215,
ore estimated at 500,000,000 or 700,000,000 tons. 76—1209.
ore is estimated as 700,000,000 tons, which at 15
cents would be worth $105,000,000
there is plenty of ore like TCI. ore that can be
bought at $50 to $100 an acre (Gary) 5—125.
iron ore and coal worth many times more than
cost to USSG ./— 10.
Clinton ore in Birmingham district is at its maxi-
mum thickness of 26 to 28 feet 75—976.
Okb. (See also "Ore," "Ore land.")
has 70 per cent of red ore mountain, as against the
remainder held by the Woodward Co. and the
Birmingham Coal & Iron Co. and the Birming-
ham Iron Ore Co 75—980.
has 70 per cent of big vein of Red Mountain,
which is best from Grades Gap to Reeders Gap,
containing a width of 22 to 26 feet of ore, of
which 12 to 14 feet is high-grade ore 75 — 1002-8.
own'^fiTi Ttpr! MnimtqiTi 1 .'i OnO arrpR iron ore in
75—978.
4688 UNITED STATES STEEL, COKPOKATION.
TENNESSEE COAL, IRON & B. H. CO.— Continued.
Ohb — Continued.
have a total of 16,900 acres of ore-tearing meas-
ures 15—978.
have no advantage over Sloas-Sheffield in prox-
imity or over A^'oodward Iron Co. nor Birming-
ham Iron Co. as to position. But they have an
advantage as to quantity and total tonnage of
first-class ore 15 — 978.
comparative tonnage of red ore held with that
held by Republic Co. and Sloss-Sheffield 15—979, 1036^0.
estimate of 70 per cent held by TCI. is based upon
knowledge of the entire area, calculated down
to a workable distance, the ore formation being
a regular, uniform vein varying somewhat as to
thickness, quality, and depth but wonderfully
uniform in its character for about 25 miles, the
actual workable ore being 10 or 11 feet wide. . 15 — 989-991.
ore ran 35 or 44 per cent metallic iron ; Red Moun-
tain ore 38 or 39 per cent; brown ore 44 to 48
per cent 1 — 17.
Birmingham ores do not contain 50 per cent iron
and therefore more than 2 tons are required to
make a ton of iron 15 — 981.
ore is comparativ^' dry, as against Lake Superior
region, and is hard ore, a majority of it, and
does not carry a high percentage of moisture.
The Lake Superior soft ores will run about 10
to 20 per cent moisture 75—990-992.
Oheandcoal. (5c«afoo "Ore," "Ore land," "Coal,"
etc.)—
ore, on account of moisture, may require 2f tons
of 36 to 37 per cent ore to make a ton of iron, but
pig iron contains 2 per cent silicon and 2 or 3 per
cent carbon, and 2 or 3 points is lost in flue
dust in the northern ores 15 — 992-3.
appraisal committee made report 15 — 973.
75-1035-1040.
has 623,639,500 tons of coal 75—973.
has 1,623,000,000 tons coal, which at output of
16,000,000 tons annually will last 100 years 75—1017.
Gary believed they got 1,000,000,000 tons and
perhaps 1,000, 200,000 tons of coal 5—125.
coal is estimated at about 1,000,000,000, which at
10 cents would be worth .?100,000,000 T. H., vol. 2, p> 1762.
coal estimated at 2,000,000,000 tons 76—1209.
TCI. has 30,000 acres of first-class steam coal, and
second class as a coking coal 75 — 1004.
has 96,000,000 tons, 2,000 pounds to the ton, of
coal; 6 cents a ton would be a fair royalty for
this. Its value would be something like $190
?200 an acre 75—1004.
probably used 3,000,000 tons of coal between 1904
when report of appraisal committee was made
and 1907 when IISSC. took property 75 — 979.
aU land west of RR. is carboniferous (coal) 75 — 975.
there was plenty coal like TCI. coal that could be
bought low (Gary) 5—125.
had 90,007,500 tons of the Jefferson or Black
Creek seams of coal in Walter, Marion, and
Fayette Counties ■"■ ''""■^
UNITED STATES STEEL COEPOEATION. 4689>
TENNESSEE COAL, IRON & R. B. CO.— Continued.
Obe and coal — Continued.
had 36,000 acres bearing coal, and a total acreage
[ of 72,015
5 cents a ton would be a good royalty for Black
Creek or Jefferson coal, and that would give that
land $125 an acre as a royalty value, which
would be paid after the ore is taken out 15 — 10O5.
has the Gamble mine, 640 acres, all mineral bear-
ing ^5—1005.
Coal. {Seeaho "Coal" and "Coal lands.") —
has Corona seam of coal, classed as second-class
steam, amounting to 2,000,000 tons; 5 cents a ton
royalty would be fair for that 15 — 1005.
has Gamble & Galloway seams, 4,500 acres of
coal in Walker, Marion, Fayette Counties,
Ala., as distinguished from Jefferson and
Black Creek. Committee estimated 16,450,000
tons, at 5 cents. That would give a value of
about $500 or $600 an acre 16—1005.
has Mary Lee seam, 640 acres, 2,000,000 tons, 7
cents a ton, or about $425 or §430 an acre, which
is the main coking coal of the Birmingham dis-
trict 15—1005.
has Swansea district, in Blount County, Ala. , 2,000
acres, 6,000,000 tons, second-class steam coal,
3 cents a ton, or $60 an acre 15 — 1006.
5,320 acres, or 15,960,000 tons, 5 cents a ton roy-
alty, or $150 an acre royalty 15 — 1006.
Cahaba Field, TCI . has 66,440 acres, or 300,000,000
tons, 7 cents a ton royalty, or about $350 an acre 15 — 1006.
Pratt Field, TCI. has Pratt, Nickel Plate, the Big
Seam, the Jefferson, and Black Creek Seams,
all underlying the Pratt 15 — 1006.
has 79,500 acres in Pratt and Nickel Plate, 60,000
acres in the upper measures 15 — 1006.
Nickel Plate will yield about 3,000 tons to the
acre, at 4 cents 15 — 1006.
has operating mines on the Big Seam, Blue Creek,
Adger, and Belle Sumter that will yield 8,000
to 10,000tonB, at 7 cents 15—1006.
Big Seam has 504,000,000 tons, first-class coking
coal, at 7 cents or 8 cents 16 — 1006.
Pratt Seam has 270,000,000 tons at 10 cents 75—1006-7..
Black Creek Seam is 100 to 300 feet deep and
worth only 3 cents a ton i5 — 1007.
Blue Creek Basin or Little Warrior, Jefferson
County, Ala., TCI. has 9,960 acres, 4,389 min-
eral bearing, which is first-class coking coal,
yielding 35,112,000 tons, at 7 or 8 cents, or about
8,000 tons to the acre, at $550 to $600 75—1007-8..
Jefierson and Black Creek, first-class steam and
second-class coking, 15,800,000 tons, at 4 cents,
or about $150 an acre 75—1008.
Big Seam or Blue Creek Seam, $550 an acre, or
about $700 or $800 total 75—1008.
7,880 acres gross, of which 2,500 acres carry a
seam of coal, identity undetermined, quality
second-class steam, yielding 3,000 tons to the
acre, or 7,500,000 tons gross total, at 4 cents a
tnn nr .«! 9.0 an arrp 75 — 1008^
4690 UNITED STATES STEEL COEPOEATION.
TENNESSEE COAL, IRON & B. B. CO.— Continued.
C o AL — Continued .
6,000 acres, of which 3,600 carry a aeam of coal
second-class steam, 3,000 to the acre, or
10,800,000 tons, at 4 cents a ton, or $120 an acre. 15—1008.
all this property is in Alabama, except where
noted at Whitwell and Tracy City, Tenn 15—1008 .
55,112,000 tons item, royalty 7 or 8 cents;
15,800,000 tons, royalty 4 cents; 10,800,000
tons, royalty 4 cents; or $120 an acre 15 — 1008.
Appraisal committee —
appraisal committee were: T. H. Aldrich, for
TCI; J. W. Worthington and Walter Moore, for
Sloss-Sheffield Co.; Charles P. Perin and Wil-
liam M. Given 15—972.
appraisal committee was at work six months, with
five members of the committee and five or six
assistants, and the use of the engineering force
of all the companies, and access to all the
records. And Given says they were engaged
on the coal land from Feb. 12 to about June 10. . 1«— 974. 991, 992, 1004.
appraisal committee took measurements, exam-
ined all records of drilling and boring, exam-
ined mines and made calculations as conserva-
tively as possible, throwing out doubtful acre-
age and dissed seams of coal too thin and iron
ore with too small a percentage. They took
the present state of the art as a basis of calcu-
lation, with some variation for improvements
which would bring lower-grade material into
the market 15—974.
appraisal committee did not include ore lower
than fourth class, which carried 32 per cent
iron, 18 per cent and over of silica, and about 15
per cent of lime 15 — 974.
map used by appraisal committee was made by
chief engineer of TCI 15—975.
all land east of railroad is ore bearing 15 — 975.
drilling was not done by appraisal committee, but
TCI . had put down a few and Geological Survey
had put down a good many 15 — 991.
appraisal committee got a very fair approxima-
tion, because if there was any doubt about the
value it was stricken from the list 15 — 991.
appraisal committee made no borings, and had
access to very few 15 — 1016.
Given arrived at conclusion from careful exami-
nation of faces, workings, and knowledge of
different bodies of minerals 15 — 1016.
appraisal committee's map shows the holdings IS — 1017.
drilling was made at IJ miles from slant of vein,
and at depth of 1,500 or 2,000 feet the quality
of the ore was unchanged 17 — 1233.
appraisal committee made report in conjunction
with efforts at merger and desired to have the
same percentage of error run through all three
examinations 15 — 994.
iron industry had been carried on actively at Bir-
mingham for 20 years before 1904 and there
were records of the furnaces 15 — 992.
Phillips costs estimates were inaHp with Vnnwl-
edge of the records of the ' ^
that were kept for 20 years
UNITED STATES STEEL COEPOEATIOjST. 4691
TENNESSEE COAL, mON & E. R. CO.— Continued.
Appraisal committee — Continued.
physical property was examined for syndicate,
and reports show that it had 425,000,000 to
450,000,000 tons of Nos. 1 and 2 ore, and
1,500,000,000 tons of coal— about one-half cok-
ing coal — and limestone and dolomite within
25 miles U—Q21.
Oglebay does not know where there is as large a
quantity of iron ore, coal, dolomite, and lime-
stone so conveniently assembled anywhere as
the TCI. has 14--921.
appraisal committee examined 500,000 acres, and
only a rather small proportion of the total area
contained workable or available iron IS — 989.
report of appraisal committee shows percentages
applicable to the three companies considered,
and not to the entire district IS — 999.
appraisal report was based upon surface indica-
tions, outcropping, information obtained by all
experts who had prospected the country, to-
gether with committee's own knowledge, the
drillings or borings that existed at the time. . . 15 — 1024-26.
400,000,000 to 500,000,000 tons ore and between
1,000,000,000 and 2,000,000,000 tons coal esti-
mated by board of mining engineers as held. . 13 — 845.
ore and minerals estimated at 700,000,000 tons ore
and 200,000,000 coal by company, as conserva-
tive estimate; extent estimated by Commer-
cial Club of Birmingham, Ala i7— 1232.
T. H. Aldrich, of appraisal committee, is familiai-
with development in Birmingham district since
report .Z5— 1028.
$1,000 an acre would be refused for some of the
land bearing ore which is used for residences. . 15 — 1010.
$200 to $1,000 per acre for surface rights is value of
the land owned by TCI. outside of mineral.. . IS — 1011.
$8 an acre was paid in 1884 for sale of land of
Billie Barksdale to F. T. Hillman, which was
afterwards sold to TCI. This land has no
quoted value now because none of it is for sale,
being held by TCI. and other companies ;5— 1009-10.
Surface land —
has 76,000 acres in Walker, Marion, and Fayette
Counties, the average price of which would be
$25 an acre for surface, exclusive of minerals,
in Payette County and $10 to $25 an acre in
Walker County 15—1024.
has 79,000 acres in Jefferson County, the price of
which would be from $25 to $4,000 an acre, ex-
clusive of minerals 15 — 1023-24.
owns 2,000 acres, about, in vicinity of Birming-
ham at upward of $500 an acre IS — 1024.
land would have quite considerable value aside
from its value as mineral property; some
would sell for $150 for a 50 by 150 lot 15—1009.
was far in advance of any other iron or steel pro-
ducer in cost of assembling its raw materials. . 16 — 1215.
important consideration was the mineral in the
ground and economy in assembling materials
ttUV,,-,, ^„,ii„= nf oci Tviiioo /. 13 — 846.
4692 UNITED STATES STEEL COEPORATION.
TENNESSEE COAL, mON & E. B. CO.— Continued.
SuBFACB LAND — Continued.
Birmingham district has unique distinction in the
proximity of three materials necessary for
manufacture of iron — ore, limestone, and coal . 15 — 975.
assembling materials 15 — 981-82.
juxtaposition of raw material is only parallel in
Middlesboro, England, where the iron ores are
of lower grade 15 — 982.
assembling of materials invohed carriage of from
5 miles to 80 mile3, while in Lake Superior
material is about a thousand miles from Pitts-
burgh 7.,— 847.
is one of the greatest properties in the world,
considering the proximity of the iron ores to
the coal (Perin), but requires large capital to
develop and has got to develop a local market,
because if $3 or $4 a ton for transportation must
be added the distinct advantage of the district
is taken away 15 — 984-85.
fluxing material was very large 16 — 1209.
Markets and transportation —
had zone or domain into which no other iron
company could enter 16 — 1114.
from Ashland to El Paso, Tex., the USSC. could
not compete in selling pig iron with TCI 16 — 1114.
advantages in southern zone were presented to
Gary by Schley and price offered gradually
rose from 60 to 75 to 90 and then par 1115.
had best of feeling for and unity of interest in this
respect, and had directors in common with
Republic Co. and Sloss-Sheffield Co J6— 1114.
and Republic and Sloss-Sheffield were mort^^
favorably located as to assembling materials
than any other three concerns 16 — 1114.
bought back railroad from L. & N . and Southern . IS — 845.
owned Birmingham Southern Ry 1 — 14.
owned or purchased Birmingham Southern R. II. 17 — 1236.
has no subsidiaries except Birmingham South-
ern Ry i— 18.
railroads that come in are Alabama Southern;
Southern; L.&N.;and Seaboard. TheAB&S.
crosses south of Birmingham 15 — 976.
traffic agreements with connecting railroads after
purchase of Birmingham Southern Ry TCI. Ex. Com. Miu.,
July, 1906.
Potter Ore Co. separate from TCI 1 — 18.
Potter Ore Co. run for TCI ;— 18.
TCI. ore could make fairly good pig iron 5 — 125.
pig iron can be made cheaper in South than any-
where i5— 1011.
has no close season and can work all year (Lake
Superior transportation is closed for winter) . . . 15 — 1011.
pig iron made cheaper in Binningham district. . 15 — 1011.
can produce iron nearly S4 a ton below Pitts-
burgh cost ;5— 983.
Pig iron. (See preceding page.)
Clinton Mining Co. sells product 15 — 1015.
Woodward is making pig iron as_rhQarilvLas_TCT r — 1Q
UKITED STATES STEEL COEPOEATION. 4693
TENNESSEE COAL, IBON & E. B. CO.— Continued.
Pig iron — Continued.
Birmingham product does not go to eastern sea-
board and in West it has a differential over
imports T. H., vol. f— 1696.
reached all territory south of Ohio River and
west into Texas economically and had territo-
rial advantage 14 — 925.
can compete with northern business at Ohio
River 75—1013.
had markets north and south for pig iron; two-
thirds of iron went north of Ohio River 17 — 1233.
market for rails was in South and Southwest. . . 17 — 1233.
market for coal was all in South 17 — 1233.
. did not have large tonnage of finished products. . 17 — 1233.
was selling iron in the territory of USSC. in
small amounts 16 — 1216.
natural market was in the South and USSC. had
no plants in that zone before absorption of TCI . IS — 889.
sold rails mainly to southern roads, to wit,
L.&N., Southern, Seaboard, Georgia Central,
Southern Pacific, and Union Pacific IS — 861.
billets with ASWCO. before organization USSC. . ASWCO. Min. Ex. Com.,
Oct. 23, 1900.
rails furnished to general superintendent of
P.&L.E. after testing 0. H. rails, he said,
"are twice as good as Bessemer rails" CSCO. Dir.,
Mar. 19, 1906.
superintendent P.&L.E. wanted to know if
CSCO. could make O. H. rails and said they
would be willing to pay a little more for 0. H.
than Bessemer
CSCO. could not make O. H. and could not get
0. H. anywhere in the country for the next
year and a half, and "when the demand for
rails falls off, which will probably be in 1907
on account of the heavy purchases made last
year and this, then we will be up against the
open-hearth proposition good and hard " CSCO. Dir.,
Mar. 19, 1906.
Production —
used O. H. process because they had no Bessemer
ore 6—359.
0. H. process is the only one possible in TCI. on
account of phosphorus IS — 848.
new 0. H. mill just reaching completion when
property was sold 13 — 848.
report as to superiority of 0. H. or basic steel and
increase in its use over Bessemer steel 17 — 1233^.
first open hearth mill in United States was owned
by TCI. at that point, as Topping says 17 — 1231.
no other rail plant in United States making O. H.
rails at time they received Harriman order, in
quantity IT — 1236.
did not make blooms for sale ; but made slabs and
billets; and made plate steel and merchant bar
steel; and steel castings 17 — 1236.
syndicate bought with idea of improvement and
not sale 17 — 1237.
4694 UNITED STATES STEEL COEPOEATIOX.
TENNESSEE COAL, IRON & B. K. CO.— Continued.
Peoduction — Continued.
bouglit 4,000 acres on Warrior River and Govern-
ment granted appropriations for extension of
slack water navigation. TCI. management
planned southern market with export possi-
bilities ^7—1237.
Export possibilities were considered through ex-
tension of slack water navigation, as TCI. was
only 150 miles from Mobile, while Pittsburgh
was 350 miles 17—1237.
steel works and rail mill planned (according to
forty-seventh report) for latter half of 1907 was
not completed for practical purposes until 1908 . 16 — 1216 ,
had expended about six and a half million dollars
in improvements 16 — 1216.
rail mill bagan to make rails in May or June, 1908 . 16 — 1216.
the improvements were general, touching the coal
mines, the iron mines, for the economical ex-
traction of the ore, and many small general
improvements, machine shops, etc 16 — 121(i.
ore, great majority were within a radius of 30
miles around Birmingham 16 — 1217.
when improvements were completed the general
idea conveyed to Schley was that TCI. would
be able to manufacture cheaper than any other
steel company in the country 16 — 1217.
Harriman order for rails was not suggested to
Hanna as the cause of the trouble in Wall
Street 15— 87li.
Harriman gave order to TCI. for 150,000 tons rails
|2 over Bessemer 1 — 8.
Harriman order was given because of preference
forO. H. rails 16—1210-11.
largest single order was from Harriman lines —
U. P. and So. P.— for over 150,000 tons 17—1231.
Harriman order for rails was several months before
company was sold. This was not first order
from Harriman. There had been several trial
lots, some as large as 50,000 tons 17 — 1231- L'
Cost $1 a ton more than price for Bessemer rails
the last year the syndicate owned the property,
owing to the fact that the phosphorus was lower
than in the Bessemer rail is — 848.
had order for 157,500 tons of rails from Harriman
besides other orders is — 848.
several months after the Harriman order went
into the books, Hanna learned that TVI. was
disponed of is — 849.
rail tonnage unfilled July, 1906, meeting reported
as 290,797, of which 45,000 was past due TCI. Ex. Cimi. \!ii
July, 1906.
made 160,000 or 170,000 tons of rails the year of
the sale 15—862.
offered rails $2 higher than "the agreed price " . . CSCO. Dir.,
May 18, 1!> ):',
did not make rails at a profit at the time syndicate
held plant (Schley says) 16 — 1210.
had orders for 320,000 tons of rails at .S'29, when
company was sold; orders for over 97,000 tons
pig iron at average S18; r>rfio'-° f"- ia^o.>> ^^a„^„
for coal; there was profit iT^^^mt^^^^^^^^^^^^
but not in rails with old °q"^^^— '— ^— - —
for rails was $28.94)
UNITED STATES STEEL COKPOBATION. 4695
TENNESSEE COAL, IRON & E. E. CO.— Continued.
Production — Continued.
officers believed there would be a profit on rails
with modem equipment n — 1231 .
had orders for about 350,000 tons of rails for 1908
delivery IS — 850.
Did not compete north of the Ohio River, except
. in pig iron ;... IS — 850.
with Tennessee in the market (and Lackawanna)
CSCO. must sell abroad 200,000 to 250,000 tons
of rails CSCO. Dir.,
July 20, 1903.
price of rails, 128.76; cost, $29.48, 1907 (Gary).. 5—144.
billets, bars, plates, pig iron, cost and sales, etc.
(Gary) 5—145.
capacity of blast furnaces was about 160,000 per
annum 5 — 125.
capacity coal and ore mines 20,000 tons a day 5 — 125.
production 5 — 125-6.
production was 15 per cent of total USSC. pro-
duction , 5—126.
and 80 per cent of blast-furnace production 3 — 126.
made small number of plates, bars, and small
rails sold in South i7— 1233.
sold small amount of steel castings 17 — 1233.
markets were in South except for pig iron 17 — 1233.
sold southern railroads except So. P. and Un. P. 17 — 1233.
but Schley says development is what brings re-
turns, and TCI. in 1904, 1902, and 1903 did not
have diversified products and only small
profits i6— 1215-16.
Schley says that Hanna, Oglebay and Gates did
not regard TCI. as competitor of USSC. be-
cause of differential in freight rates to Ohio
being |3 and to New York bemg 14.60, the
latter being prohibitive i6— 1216.
Transpoktation and earnings —
would have had advantage in southern territory. 1 — 20.
was entirely independent company before
absorption 2 — 69.
was taken control of by USSC. November, 1907. S—123-A.
property is largely in Alabama S — 124.
had been operating 30 to 40 years before taken by
USSC, 5—124.
Gary can't say TCI. was a forcible and contend-
ing competitor of USSC 5—124.
TCI. had been competitor to a very slight extent. 5—124.
purchase by USSC USSC. Dir.,
Nov. 6, 1907.
contract for sale to USSC TCI. Ex. Com. Min.,
Nov., 1907.
$1,200,000 par value 10-60 bonds USSC. ex-
changed USSC. Fin. Com.,
Oct. 23, 1907.
purchase of capital stock for $30,000,000 par value
10-60 bonds authorized USSC. Fin. Com.,
Nov. 6, 1907.
onlv a fftw shares r)referrRd not held by USSC. . 1 — 19.
4696 UNITED STATES STEEL CORPOEATION.
TENNESSEE COAL, IRON & B. K. CO.— Continued.
Transportation and earnings— Continued.
USSC. did not have any large plant m the boutn ^ ,_^.26
prior to absorption of TCI . - - ■ - - - - ''
35 per cent increase in net earnings shown April ^^
30,1907 May 21, 1907."'
374 per cent increase in earnings after paying
dividends higher valuation on account of ap-
nreciation recommended upon mineral prop-
Srties ^^- ^™-'
^ May 21, 1907.
rails output increased by May 1, 1907, 15,000 to
20,000 tons a month, and total output up to
January 1, 1908, was 425,000 tons. Surplus out-
put of 100,000 tons was authorized to be sold
during 1907 TCI. Ex. Com. Min.,
May 23, 1906.
General —
statement of financial condition June, 1906 TCI. Ex. Com. Min,
June, 1906.
would be in bankruptcy if USSC. had not pur-
chased (Gary) • S — 150
condition of TCI. at time of acquisition (Gary). . 3 — 143-4.
financial condition April 1, 1907, and March 1,
1907 TCI. Ex. Com. Min. ,
Mar. 6, 1907.
carried account with Trust Co. of Am., formerly
with Nat. Bk. of Nor. Am TCI. Ex. Com. Min.,
Mar. 20, 1907.
percentage of United States production S — 145.
costs obtained from TCI. books S — 145.
not large market for TCI. products on account of
location .?— 146.
estimate of value S — 147.
estimate of value by Frank A, Munsey 3 — 147.
forty-seventh annual report contains estimate of
value by committee of which Schley was mem-
ber i6— 1210.
sixth annual report of USSC. as to 16 — 1164.
Senate committee investigation and report 16 — 1121.
statement of minerals and valuation in Senate
report iS— 1121.
Senate committee on TCI. investigation and
report 16—1121.
full statement of properties, pp. 27 and 27, Annual
Report USSC, 1907 5—125.
TIDEWATER CO.—
^^^ not manufacture and would be credited $2 a ton,
or$l,204 on 3,586,000 pounds, and distributed at end
«lZ?^^'v, !^'^°'^'^ y®^"" '* "^^^ agreed that money
should be returned to those who paid it 2^—1721.
TOLEDO BRIDGE CO.—
'"STOO OOO^nrtf ^^P^^-, ^"' i^l.OSCOOO, payable in
AMBCOnT Tolt/°r ^1^"^"°° common ^stock of
AMULOm. Toledo Co. had assets, $606,586, and AMBCONJ. Dlr.,
plant to be sold at not less than $5,.500 AMBCONj".^'
UNITED STATES STEEL COEPOEATION. 4697
TEENTON mON CO.—
listed in Red Book of Wire Rope Association as having
a store in New York City '. 10 — 574.
capital stock bought for $500,000, par value 10-60
IJSSC. bonds USSC. Fin. Com.,
July 5, 1904.
bought USSC. Fin. Com. Supt.
Ext.,
July 5, 1904.
bought tor cash instead of the bonds USSC. Fin. Com.,
Sept, 27, 1904.
TEOY raON & STEEL CO.— TROY STEEL PROD-
TTCTS CO.—
520,000 first-mortgage bonds and $4,526.76 certificates
of debentures delivered to HCFCCO. in settlement
of claim of $6,526.76 HCFCCO. Dir.,
Jan. 22, 1896.
acquisition — President does not believe it would be
of any value to us, and Mr. Converse stated "that
the Carnegie people can deliver material on the
wharf of the Troy Co. not only cheaper than it can
be made there, but at a good profit. Proposition
to acquire declined USSC. Ex. Com-.,
Nov. 18, 1901.
at Breaker Island to be bought by USSC. for not
exceeding $1,000,000 USSC. Fin. Com.,
Aug. 28, 1902.
shortage of coke said to be reason for not operating. . . ASWC. Dir.,
Mar. 10, 1903.
bought for $107,291.70 cash and note for $1,100,000
payable in 1903 at 5 per cent ASWC. Dir.,
Feb. 10, 1903.
purchase of by, for $1,100,000 approved by USSC.
(Perkins in chair) USSC. Fin. Com.,
Dec. 9, 1902.
"a memorandum a|;reement was approved, dated
Dec. 24, 1902, with A. C. Bedforcl, representing
John D. Rockefeller, H. H. Rogers, and others,
being the owners of a majority of the securities of
the Troy Steel Products Co., which company is the
owner of the plant known as the Troy Steel Plant,
not less than a majority interest to be purchased
for the sum of $1,100,000, payable either in cash or
in the proposed second-mortgage 5 per cent bonds
"The finance committee was authorized to determine
the final disposition of said Troy steel plant, and
whether the same shall be vested in one of the sub-
sidiary companies; and if so, which one " USSC. Dir.,
Jan. 6, 1903.
plant operation deferred on account of having no coke
or ore, and changed conditions from what existed
when plant was acquired USSC. Ex. Com.,
Apr. 21, 1903.
operating deficit $17,028.69 assumed by AS WCO ASWC. Dir. ,
Mar. 20, 1906.
TRUST CO. OF AMERICA—
Trust Co. of America had capital $2,000,000, surplus
of $10,000,000, and deposits of balance $61,000,000
of $62,000,000 on Oct. 22, 1907 ;?5— 1660.
has capital of $2,000,000 ;g5— 1652.
4698 UNITED STATES STEEL COEPOKATrON.
TBtrST CO. OF AMEEICA— Continued.
International Banking & Trust Co. was consolidated
with North American Trust Co. under name of
"North American Trust Co." The North American
Trust Co. was consolidated with Trust Co. of Amer-
ica and City Trust Co. under the name of Trust Co.
of America. The Trust Co. of America then ab-
sorbed the Colonial Trust Co., making the present
organization J-J — 1652.
has assets of approximately $50,000,000 i'5— 1653.
has $43,000,000 or $44,000,000 in deposits, and $6,500,-
000 surplus; capital of .52,000.000; and the bank
building cost $4,000,000 with the land JS—lCuX .
$3,500,000 difference in surplus marked off and few
hundred thousands of dollars lost on loans £-3 — 107!) .
deposits to-day are $30,000,000 and have been $33,-
000,000 iJ— 169'i.
had no connection with Knickerbocker Trust Co.,
except that Barney, president of Knickerbocker
Trust Co., was director in T. C. of A ij— 1058.
H. B. HoUins, director of Knickerbocker Co., was
director of T. C. of A i'J— 1650.
Trust Co. of America never owned a share of TCI 23 — 1654.
had $400,000 or $500,000 TCI., which was promptly
taken out ;e— 1110.
held TCI. only as collateral for loans ;25— 1655.
clearing house claimed they had too much 1 — 20.
4—187.
loaned -582,700 to 6 individuals on TCI. at 60 ^5— 1655-().
on TCI. loaned to 6 individuals on Nov. 1, 1907, six
loans, as follows: $104,000, $22,700, $52,000, $52,000,
and $200,000 i6— 1174.
these loans were paid off as follows: Of $200,000,
$102,000 as paid Nov. 7, and $98,000 Nov. 12;
$52,000 paid Nov. 14; $32,200 paid Nov. 18; $104,000
paid Nov. 20; and two of $52,000 in Jan., 1908 7.5—1174.
had loaned $482,000 on 8,020 shares roughly of TCI. . ,?.J— 1694-5.
loaned on TCI. at 60, or $60 on a share, and if it had
gone down, they would have asked for more col-
lateral ?,?— 1694.
those loans were called and paid 3S — 1656.
these loans did not in any way embarrass the Trust
Co. of America ss — 1656.
hold $500,000 TCI. was a fleabite in opinion of Perkins
as regards the panic conditions 22 — 1523.
held $500,000 TCI. which was only a drop in the
bucket as far as the difficulties were concerned 2f — 1535.
Moore & Schley owed it $250,000 or $500,000 secured
principally by American Tobacco 23 — 1654.
loan was in 1906 and paid in 1907
never asked Moore & Schley for additional security
and loan was paid off tS — 1654.
was not saved by taking of the TCI. by USSC. nor
were they in trouble on account of the TCI 22 — 1523.
Saving Trust Co. of America and Lincoln Trust Co.
depended on whether USSC. took TCI. If they
did that then the bankers as their share would put
up $15,000,000 to Lincohi Trust Co. and Trust Co.
of America ,^0 — 1485
UNITED STATES STEEL CORPOEATION . 4699
TBTJST CO. OF AMERICA— Continued.
Perkins says on Saturday the Moore & Schley trans-
action was discussed, and the trade was that if the
USSC. took the TCI. that would relieve them, and
if they took the stock out of the banks, the trust
companies were at the same moment to fximish
the Trust Co. of America and the Lincoln Trust Co.
with $15,000,000 on Wednesday morning. There
were two trades in one 22 — 1.523.
presidents met at 8.30 at uptown office of Union
Trustee «— 1667.
had no organization as the bankers had in the clear-
ing house 2.2—1525 .
Thome did not know that Gary and Frick were with
the President endeavoring to save Trust Co. of
America, not that sale of TCI. to USSC. would, was
part of reason for helping Trust Co. of America 23 — 1694.
was criticized on Oct. 21 or 22 for kind of business
they were doing, Perkins says 21 — 1502.
Perkins referred to Georgia Central Ry. (or some rail-
road in the South they were interested in) in con-
nection with his statement that they were doing
a business which was not strictly a trust company
business 22—1535; 27—1505.
did not depart from usual lines of trust company busi-
ness (Thome) 25—1658.
never criticized to amount of loans or securities by
bank examiner 25 — 1695.
run on, began Oct. 22, 1907, and Cortelyou came to
New York on that account 21 — 1500.
withdrawals on Oct. 22 were 11,500,000 25—1660.
was under discussion at bankers' conference with
Cortelyou on Oct. 22, at Manhattan Hotel 27—1503.
Thome saw Perkins and Davison at Union League
Club onnightof Oct. 22 25—1660.
Thorne made statement of condition to bankers 21 — 1505.
examination had been made a few days before article
shown by Perkins 25—1695.
stated condition of Trust Co. of America on Oct. 22 to
Perkins and Davison, and they were pleased with
the condition of affairs. They asked if Thorne
would permit the examination of the Trust Co. of
America, and Thome said they could provided they
would treat the Trust Co. of America as a clearing-
house concern and assist him if it was needed 2S — 1661.
condition was not alarming the night Thome met
Perkins 25—1697.
committee from clearing house came at7a.m., Oct. 23,
to examine the affairs of the Trust Co. of America. . 25 — 1662.
the next day, after the statement was made in the
paper that the Trust Co. of America was the chief
sore spot, there was a run made on the Trust Co . . 16 — 1110.
mn on this company was greatly intensified on
Wednesday, Oct. 23, the day of ttie article in the
Times, over Tuesday 27—1509.
run on, began on Wednesday, Oct. 23, and were very
much intensified after statement in Times 27 — 1509.
New York Times article, Oct. 23, 1097, stating that
money it needed would be pledged 25 — 1663-5.
300 or 400 people were in line Oct. 23 and 27; paying
25—1665.
4700 UNITED STATES STEEL COEPOEATION.
TBUST CO. OF AMERICA— Continued.
up to article, Oct. 23, in Times, had no trouble 25—1684.
had paid out $1,000,000, but that was not unusual for
the time and conditions, but there were no concen-
trated runs on other companies 25 — 1684.
withdrawals on Oct. 23 were $13,000,000 «— 1660. ■
"withdrawals" refers to net amount by which money
paid out exceeded money taken in 25 — 1684.
continued to pay its depositors 20 — 1474.
had $18,000,000 or $20,000,000 out of seventy-odd
milUons left after storm 25—1693.
withdrawals on Oct. 23, 24, and 25; the large ones
were: Chattanooga Station Co. withdrew a balance
of $180,000, Southern Ry. withdrew a balance of
$300,000, and Central of Georgia Ry. withdrew a
balance of $300,000, and these were all paid to J. P.
Morgan & Co. by check for $666,000 on Oct. 26 25—1701.
Thorne delivered the check to Morgan S3 — 1701.
biggest loan was (Oct. 22) $3,2.50,000 on Norfolk & So.
R. R. to Edward Sweet, syndicate manager; se-
cured stock of Norfolk & So. R. R. and under-
writing agreement 25 — 1605-6.
received as security for -53,250,000, 87J in bonds, 30
per cent in preferred stock, and 100 per cent in
common stock, or 217 per cent for every 75 paid by
Trust Co 25—1696.
examining committee did not report so far as Thorne
knew 25—1666-7.
Thorne went to Morgan's for cash on Oct. 23 25—1666-7.
borrowed $1,000,000 on note and collateral deposited
with Morgan 25—1667.
received $1,500,000 from Hanover National Bank. . . 25—1667.
World article Wednesday, Oct. 23, says bankers will
assist 2.?- 1505.
appealed to them (Perkins) on Oct. 22 for help and
sent word on 23d about half past 2 they were going
to close and couldn't keep open and their cash was
low. And Morgan, Stillman, and George F. Baker
advanced to Trust Co. of America enough money to
enable them to meet their demands until 3 o'clock
on Wednesday, Oct. 23 20—1473-1.
got from Morgan, Baker and Stillman enough to keep
open until 3 o'clock, and next .$10,000,000 fund
was raised 2.Z — 1509.
borrowed $10,000,000, which was loaned by Govern-
ment through national banks, who reloaned it on
securities furnished by strong trust companies 2i — 1505.
Thorne guaranteed Union Trust Co. loan and put up
$2,000,000 of his private fortune 25 — 1679-81.
$10,000,000 loaned by Union Trust Co. on 520,000,000
collateral, picked out by Strong and Kilburn S3 — 1669.
agreement with Union Trust Co. for $10,000,000 loan. . 25—1669-72
$10,000,000 loaned by Union Trust Co. on S20,000,000
collateral, picked out by Strong and Kilburn for
the Union Trust Co gs 1669.
agreement with Union Trust Co. for $10,000,000 loan. . 25—1671-72.
cash received on loan of Union Trust Co S3 — 1673.
second loan from King, of Union Trust Co., of $15,000,-
000 Nov. 6, on similar rnntract. t.n firat. InaTi apnuroA
by $30,000,000 securities
UNITED STATES STEEL COKPOEATION.
4701
TEUST CO. OF AMERICA— Continued.
cash received on second loan 23 — 1674.
second loan agreement with Union Trust Co ^3 — 1674-75.
Nov. 3 a committee of trust companies published
statement that assets of Trust Co. of America were
sufficient; and the Trust Co. of America held TCI.
stock ^6— 1111.
Thome tried to get a report made to Morgan by people
in Morgan's interest, and that was done Nov. 4, and
on Nov. 6, $10,000,000 was loaned, of which Morgan's
firm loaned $300,000 ! 25—1686.
repaid loan ^3 — 1677.
payments in repayment of loans 23 — 1677.
repaid some of the loaned money before he received
all the money upon the loans 23 — 1678.
amounts repaid on loans 23 — 1678.
loans from Union Trust Co. entirely extinguished in
August, 1908 g.S— 1678.
loans were paid off gradually as company released
collaterals; some of which had been deposited with
other trust companies and some retained by Trust
Co. of America 23 — 1684.
did not sell out a single loan, and borrowers paid up. 25-7-1684^85.
some of collateral put up on $10,000,000 loan was col-
lateral held on loans and the^maturing and pay-
ment of these loans dischargea some of the $10,000-
000 loan 25—1685.
$400,000 referred to was disposed of in this way 23 — 1685.
Stone's letter attributing statement to Perkins on
Oct. 22 which caused run on Trust Co 2S — 1687.
Many persons said newspaper articles concentrating
upon them caused run (states Thorne) 23 — 1683.
article of Oct. 23 in Times was only paper that featured
the article 25—1683.
question of suing was discussed before they got
$15,000,000 loan when they were hanging in the
balance 25—1698.
gave up idea of suing when they got the money (not
because they had hot the evidence that Perkins
wrote it) 25—1698.
rumors that they had been loaning in the New York &
Westchester and the Portchester trolley lines 25 — 1691.
if rumors had been prevalent before the article, this
article would not have been helpful in any view. . . tS — 1691-2.
article says the company will be supported until 1
o'clock, and if it was true that company had been
engaged in business not according to law, Thorne
says he would have drawn out every dollar if he
had been a depositor, and the article is an invita-
tion to every depositor to draw out his money
before 1 p. m 25—1692.
Shreveport paper in regard to Trust Co. of America. . 23 — 1681-2.
deposited with Morgan & Co. the TCI. held as col-
lateral to be exchanged for USSC. bonds and
Thome deposited his 25—1657.
TUFTS & CO.—
Tufts and another agent of USSC. in Texas sell about
fin npr fPTit or 75 Der cent of general products of
i— 52.
4702 UNITED STATES STEEL COEPOEATION.
UNION DOCK CO.—
Ill shares of this corporation's stock by Union Steel
Co Union Steel Co. Dir.,
June 4, 1909.
UNION FENCE CO.—
capital stock 500 shares and De Kalb Fence Co. capital
stock 1,000 shares bought for $275,000 ASWCO. Dir.,
Mar. 16, 1909.
UNION-SHARON PLANTS—
acquisition of, estimated that the plants, coal and coke
properties, amount to $28,000,000 USSC. Fin. Com.,
Dec. 9, 1902.
UNION R. R.—
contract with Carnegie Steel Co. and a syndicate to
connect with Wabash R. R. at Toledo fixing rates,
commissions, etc Carnegie Dir.,
Feb. 5, 1901.
has agreement with CSCO. whereby CSCO. charges it
"for the right of way in and through the various
works" CSCO. Dir.,
Sept. 2, 1902.
new track to be laid USSC. Ex. Com.,
Apr. 7, 1903.
contract with Wabash R. R. referred to special com-
mittee USSC. Fin. Com.,
Apr. 28, 1903.
UNION STEEL CO.—
was a wire plant held by Frick and Mellons,
$45,000,000 1—2?,.
capital stock $20,000,000
bonds $35, 728, 000
owes USSC $8, 000, 000 or $10, 000, 000
not capitalized S — 70.
manufactures pig iron, semifinished steel plates and
wire 2 — 70.
owns large body of ore, and owns coking coal 2 — 70.
is only company receiving unfinished steel from
CSCO. which competes with constituent com-
panies CSCO. Dir. ,
July 1, 1902.
to be pushed as hard as CSCO. can; $28 for billets
high enough for this CSCO. Dir.,
Nov. 4, 1902.
piirchase of all capital stock and guaranty of
$45,000,000 bonds USSC. Dir.,
Jan. 6, 1903.
to have nominal organization in New York nominees
named USSC. Fin. Com.,
June 2, 1903.
bought various plants named Union St. Co.,
Feb. 18, 1903.
mortgage $45,000,000 to New York Security & Trust
Co Union St. Co., stock,
Feb. 18, 1903.
Sharon plants to be bought for new bonds Union St. Co. Dir.,
Feb. 18, 1903;
Feb. 21, 1903.
old officers resigned and USSC. employees elected... Union St. Co. Dir.,
July 14, 1903.
operating contracts with CSCO. and ASWCO Union St. Co. Dir.,
UNITED STATES STEEL COEPOEATIOlSr. 4703
UNION STEEL CO.— Continued.
agreement or lease to CSCO. of May 2, 1904, can-
celed CSCO. Dir.,
Feb. 8, 1909.
operating contract with CSCO CSCO. Dir.,
May 2, 1904.
ore and coal properties 24 — 1762.
UNION SUPPLY CO.—
dividends 366J per cent Jan. 1-Oct. 1, 1898; 466f
per cent Jan. 1-Dec. 28, 1898 HCFCCO. Dir.,
Sept. 28, 1898;
Dec. 28, 1898.
paid 300 percent, or $225,000, Jan. 1, 1899, to Dec. 31,
1899 HCFCCO. Dir.,
Jan. 24, 1900.
200 per cent dividends, or $150,000, Jan. 1 to June 20,
1900 HCFCCO. Dir.,
Apr. 30, 1900.
366f per cent dividends or $275,000 HCFCCO. Dir.,
Jan. 30, 1901.
bought American Supply Co. for $50,123.64 AASWCO. Dir.,
Sept. 9, 1901.
100 per cent dividends or $75,000 HCFCCO. Dir. ,
Jan. 16, 1902.
incorporated for $500,000, stock deposited with Union
Trust Co. under deed of trust of Carnegie Co Carnegie Co., Dir.,
Apr. 16, 1902.
$413,066.66 paid in dividends in 1902 HCFCCO. Dir.,
Dec. 24, 1902.
dividends, etc., see minutes extracted Union Supply Co.
(Minutes of directors.)
•Gary says USSC. made it certain the men were sold
goods at lower prices than they could purchase the
same things elsewhere 5 — 238.
UNION TRUST CO.—
King, Edward, of that company, was chairman of com-
mittee that furnished money to Trust Co. of
America; committee was Mr. Wallace of the Cen-
tral, Mr. Marston of the Farmers' Loan & Trust Co.,
Mr. Waterbury of the Manhattan, and Mr. Sheldon
of the United States. : „'.J— 1687.
loans to Trust Co. of America ;?.?— 1669-76.
Trust Co. loaned $10,000,000 to Trust Co. of America
on $20,000,000 securities picked out by Strong &
Kilburn lV— 1669.
UNITED COAL & COEi; CO.—
99 shares bought by HCFCCO. for $4,943.36 HCFCCO. Dir.,
Oct. 24, 1890.
USSC. SYNDICATE—
Perkins states he does not know what the syndicate
received for forming the USSC :?2— 1576 .
some member of Morgan & Co. would have to tell how
much was realized for the stock given to the syn-
dicate n—mi.
received a certain amount of stock 22 — 1577 .
difference between Knox Smith's and MacRae's fig-
ures referred to as to amount received , 22 — 1577.
4704 UNITED STATES STEEL CORPOEATION.
USSC. SYNDICATE— Continued.
Perkins does not know how many members were in
the bond-conversion syndicate 2f — 1577.
Perkins does not know how many of this syndicate
were also members of the board of directors of the
United States Steel Corporation 22—1577.
Perkins can not name any of bond syndicate who
were then directors of the USSC 2^—1578.
bond syndicate — J. P. Morgan & Co. was a member of
the syndicate 22—1578.
bond syndicate — members had an option extending
for21 months 22—1578.
received about 1129,000,000 in stock 9 — i71.
received $129,000,000 par value USSC. stocks 5—256.
$3,000,000 expended. Perkins says he does not know
what it was for 20—1426.
delivered to CSCO. interests $303,450,000 bonds,
$98,277,120 preferred stock, and $90,279,040 com-
mon stock USSC 2—66.
UNITED STATES STEEL CORPOKATION—
Divided and classified —
1. Promises (see also Gary and Lindabury)
2. Negotiations for formation, etc. {see also Competition; Morgan;
Gary; Schwab; Gates, J. W., etc.)
3. Combination advantages, etc. (see Schwab combinations)
4-6. Capitalization and valuation, etc. (sec Gary, etc.)
7-9. Securities, etc. (see Gary; Perkins; J. P. Morgan & Co., etc.)...
10. Dividends (see Subsidiary companies; MacRae, etc.)
11. Management — officers and directors, etc. (see Presidents; Sub-
sidiary companies, etc. ; Advertising)
Management —
12. Subsidiary companies (see Assumption of debts; Shutting plants,
etc.)
13. Directors (see Subsidiary companies; Presidents, etc.)
14. Government investigation (see Government; Commissioner of
corporations)
15-18. Bond conversion {see Perkins; Gary)
19. Coke and coal, etc. (see Coal and Coal lands; Coke; and various
coke companies)
20. Competition (see Competition; Grary dinners; Gary, etc.)
21. Export (see Export; United States Products Co.; United States
Steel Products Export Co.)
22-39. Financial and corporate operation to general — and year by
year {see Trade conditions; Tennessee CI&RRCO. syndi-
cate; TCI&RRCO.; Assumption of debts, etc.)
40. Jobbers and retail, etc. (see Jobbers, and Gary dinners)
41. Labor (see Labor)
42-45. Ore (see Ore; Ore land; Competition; Pig iron; Cost; Steel;
etc.)
46. Political contributions (see Political contributions; Lindabury,
and Perkins)
47. Pools and associations (see Pools and associations; Competition;
Cooperation; Combinations)
48. Prices {see Prices)
49. Production (see Pig iron; Steel; Structural material; cost, etc.).
50-53. Tennessee CI&RRCO. acquisition (see Tennessee CI&RRCO.
syndicate; TCI&RRCO.; Moore & Schley; Schley; Per-
kins; Gary) '
54. Transportation (see Transportation; Railroads; Terminal allow-
ances, etc.)
UNITED STATES STEEL COBPOEATION. 4705
UNITED STATES STEEL COEPOBATION—
Promises —
offered to permit the examination of the minute
books at their office 8 — 496-7.
annual reports offered and received 5 — 261 .
Lindabury promises to furnish as soon as it can be
prepared a similar list of each one of the direc-
tors of the United States Steel Corporation to
that furnished showing all companies in which
Mr. Gary is a director, both subsidiary com-
panies of the United States Steel Corporation
and other companies gO — 1417.
Negotiations for poemation —
• negotiations by Gary with Federal Steel directors
looking to formation USSC ." 4—204, 215.
USSC. was projected and planned at interview
between J. P. Morgan, C. M. Schwab, J. W.
Gates 1—n.
plan outlined by Schwab to Morgan, at request of
Gates 18—1278.
Carnegie planned to build a tube works on Lake
Erie and to build a raihoad from Lake Erie
points, and Mr. Morgan had expressed to Mr.
Hill the fear that if Carnegie went into the
building of railroads he would demoralize the
entire railroad situation as he had demoralized
the steel situation, and that if he built a tube
works at Ashtabula, it would result in a de-
moralization of the prices of tubes. Mr. Mor-
gan had just put the National Tube Co. to-
f ether. After considerable talk between Mr.
[ill and Mr. Morgan, Mr. Hill suggested to Mr.
Morgan that he talk to me. Mr. Morgan asked
me how I would suggest we could stop Car-
negie from building his railroad and building
this tube works; and I told him in my opinion
there was only one man to talk to that had any
influence with Mr. Carnegie, and that was
Charley Schwab. He wanted to call in Frick.
I said, "If you do, you will never make a trade
with Mr. Carnegie." "Well," he 'said, "will
you get Schwab on for a conference? " Schwab
and Gates drew up a plan at Morgan's house
for the United States Steel Corporation.
"And it was to obviate this anticipated com-
petition that this tentative plan was drawn up
that afterwards became the United States Steel
Corporation " (Gates) 1 — 31-32.
organized about 40 or 60 days after interview be-
tween J. P. Morgan, J. W. Gates, and Schwab. . 1—32.
being formed prevented Carnegie from control-
ling steel business in United States 2-4 — 1725.
the intention to render impossible the projected
competition of Carnegie in building a tubing
business and a railroad from Pittsburgh to New
York, as Mr. Gary says, "was one of the gov-
erning motives, I think, on the part of Mr.
Morgan " that led to the formation of the Steel
Corporation. Mr. Morgan was the responsible
head of the Steel Corporation, and either he or
some representative of his firm invariably was
present at the meetings of the finance com-
mittee and the board of directors T. H., vol. 2, p. 1755
79—1401.
£0— 1423.
4706 UNITED STATES STEEL COKPOKATION.
XTNITED STATES STEEL CORPORATION— Contd.
Negotiations for pormation — Continued.
USSC. was planned to obviate competition an-
ticipated from Carnegie 1 — 32.
5,000 acres at Conneaut bought by Carnegie Co. . 6 — 31.
Smith's letter of submittal (q. v.) stated that the
merger averted the steel war and realized great
profits from the flotation of securities, and in
his examination Smith so testified 9 — 493—1.
Combination, advantages, etc. —
combination and its advantages suggested by
Schwab in 1899 i7— 1276.
object, according to Schwab's speech, in form-
ing it was to secure a reduction in cost, and
not to throttle competition 18 — 1281.
extended trade, but Schwab will not admit that
it restricted competition 18 — 1297.
consolidation of all manufacturing companies
into one company and discharge of number
of officers suggested by president, and action
deferred USSC. Ex. Com.,
Apr. 29, 1902.
general sales company plan considered Gen. Man. Sal. Min.,
Oct. 16, 1908.
liid not combine into one operating company
because largely of the State laws where resi-
dence is required fi — 1-545.
formation merely by changing stock ownership
of subcompanies did not produce advantage
in steel business 22 — 1553-54.
Perkins says: "-I do not know that the transfer of
the securities by and of itself was so much to the
point as to coordinate and cooperate these
plants in one harmonious working organiza-
tion. There had been very severe labor diffi-
ijulties, you know, and especially in the steel
business. There had been very severe com-
mercial troubles because of difficulties in the
steel business, and a cooperative spirit was
thought to produce better results and econo-
mies in operation " 22 — 1554.
by aggregating the plants labor was better con-
trolled 22—1554.
better men came in and worse men went out 22 — 1554.
Perkins could not specify any reduction in cost
of products of the steel corporation in the last
10 years 22—1555-56.
list of improved and constructed plants amount-
ing to $31,448,186 USSC. Ex. Com.,
Feb. 17, 1903.
ilate of purchases kept by purchasing agents. . . . Gen. Man. Sal. Min.,
Feb. 16, 1910.
CAPFTAIylZATION AND VALUATION, ETC. —
capitalization of subcompanies, and valuation of
properties and amount of stock issued therefor
by USSC 5—2.58.
was overcapitalization from standpoint of cost of
materials and properties, but not from stand-
point of combination 5 — 259.
overcapitalization shown by statement of' sales
and assets T. H vol 9 n 1409
effects of overcapitalization ;
UNITED STATES STEEL COBPOEATION. 4707
UNITED STATES STEEL CORPORATION— Contd.
Capitauzation and valuation, etc. — Continued.
selling value of old securities was 1400,000,000
less than the total amount of new securities,
stocks, and bonds T. H., vol. 2, p. 1756.
was charged with overcapitalization in the courts,
and it proved the capitalization as it was made.
There were two suits, and the Hodge suit was
the second 9 — 527.
sued by Hodge in New Jersey 4 — 179.
capitalization and bonds, 1901 and 1910 5 — 254.
$1,782,000,000, Munsey's valuation of USSC.
property; $1,000,000,000 at least is capitalized
profits T. H., vol. 2, p. 1745.
estimate of values of properties by Munsey's
Magazine, Gary says, is right S — 90.
valuation would vary 1500,000,000 to $1,000,000,-
000 (Gates) i— 34 .
capital stock increased to $1,100,000,000, of
which $550,000,000 shall be 7 per cent cumula-
tive preferred stock and $550,000,000 common
stock USSC. Dir.,
Apr. 1, 1901.
preferred stock $325,000,000 i— 33.
common stock $525,000,000 i— 33.
preferred stock in $360,281,100 par value and
common stock is $508,302,500 par value, bonds
(all classes) $480,199,000, making $1,474,028,000 T. H., vol. 2, p. 1736.
bond issues 1 — 33.
"to begin with, the interests that were turned in
to the various corporations (of the USSC.) had
some underlying bonds. That made one class
of securities. Then another class of securities
would be a first-mortgage bond, which the
corporation caused to be issued to Mr. Carnegie,
known as the Carnegie Steel Co. first mortgage
fives. Then there are the bonds of the various
subsidiary companies — the railroad and steam-
ship lines and so on — amounting, as I saw a
statement yesterday or the day before, to some-
thing like $600,000,000. Some are purchase-
money mortgages; and, really, what the bonded
indebtedness of the Steel Corporation is I do
not know." Then there is the preferred stock,
originally $525,000,000, but reduced by ex-
change for $200,000,000 second mortgage bonds
to $325,000,000 and then $525,000,000 common
stock (Gates) 1 — 33.
bonds draw 5 per cent 5 — 261.
organization expenses, statement of furnished.. 20 — 1417.
$490,000,000 USSC. issued for Carnegie Co., i. e.,
$303,450,000 bonds, $98,277,120 preferred and
$90,279,040 common stock 5—259.
issued for Carnegie property $500,000,000 1—S3.
had to give bonds for National Steel Co. because
Judge Moore got Carnegie to demand it 1 — 32.
gave $50,000,000 too much for National Steel Co.
(Gates) .?— 32.
acquired three good-sized concerns in the Federal
Steel Co., i. e. the Minnesota Iron Co. owning
tho Diilnth A TRRC: the Lorain Steel Co.,
.Z— 28.
4708 UNITED STATES STEEL COBPOEATION.
UNITED STATES STEEL CORPOEATION— Contd.
Capitalization and valuation, etc. — Continued.
exchanged .?46,800,000 for $40,000,000 ASW., and
about $50,000,000 or $60,000,000 for $50,000,000
ASW. common; acquired PELE. with CSCO. 1—21.
added nothing to the properties of the subsidiary
companies except $25,000,000 paid in cash, for
which the syndicate took stock T. H., vol. 2, p. 1755-6,
had always paid 7 per cent on preferred and there
was no doubt about the corporation's ability
to pay it ;2f— 1563.
$25,000,000 additional capital was put in at
organization t2 — 1552.
$25,000,000 was comparatively small compared
with capitalization of $1,400,000,000 22—1552-3.
a great deal of capital has been added to USSC.
business from the earnings 22 — 1553.
s«c Gary on same subject T. H., vol. 2, 1745-
(foot.).
$50,000,000 additional capital added by the bond
conversion 22 — 1553.
no additional capital added outside of $25,000,000
put in at organization and $50,000,000 procured
by bond conversion, and additional stock is-
sued by subsidiary companies 22 — 1553.
additional capital added by sale of stock of sub-
sidiary companies 22 — 1553.
secured the additional value by reason of the fact
of the combination and the additional strength
which the combination gave it T. H,, vol. 2, p. 1756.
capitalized at $1,475,000,000, and there has been
a profit of about $307,000,000— that is to say
its property has increased in value from
$1,475,000,000 to $1,782,000,000; "and that in-
crease, as I understand you, represents the
investment of earnings in new buildings in the
expansion of your plant, and the increase in
the value of your ore properties and real
estate" T. H., vol. 2, p. 1747.
$400,000,000 cash expended on property since
organization .5 — 259-262.
Securities —
when first organized its securities consisted of
approximately $304,000,000 of first-mortgage
bonds, $508,000,000 preferred, and $508,000,000
common stock. Perkins says he believes the
first-mortgage bonds of the USSC. were a first
lien on the property 22 — 1561.
(Note: Can this mean that they preceded the
outstanding bonds of the subcompanies?)
earnings were first applied to paying bonds of
subcompanies, then USSC. bonds, then pre-
ferred stock , and then common-stock dividends . 22 — 1561 .
conversion scheme created a fourth class of se-
curities, amounting to $200,000,000, because
$250,000,000 was not issued 7—33, 34.
only $200,000,000 of second-mortgage bonds were
issued 22—1562.
if USSC. defaulted and was foreclosed, the pro-
ceeds would be used to pay interest on first-
mortgage bonds, then second-mortgage bonds,
then preferred, and then c""'"'"^ ct^„v oo icco
UNITED STATES STEEL CORPORATION. 4709
UNITED STATES STEEL COBPOBATION— Contd.
Securities — Continued.
control of a commodity becomes a combination
value above the actual value oJ the property,
and because of the control caused by the elimi-
nation of competition a company can float
an inflated lot of securities and afterwards
"turn water into wine" 9 — 480.
$700,000,000 had to be made up and was not rep-
resented by actual value 9 — 480-1.
$700,000,000 of the capitalization of USSC. (one-
half) in 1901 "was value due either to increased
earning power from elimination of competition,
concentrated ownership of the basic natural
resources (iron ore and coal), or in some degree
integration efficiency, " as stated in Smith 'h
report (p. 6) 9-479-SO.
if Smith's estimate of $700,000,000 value of prop-
erty was correct, the second-mortgage bonds
would have been better than the preferred
stock f f — 1562 .
if Smith's valuation of $700,000,000 is correct and
bond conversion added $200,000,000 to $500,-
000,000 bond issue already outstanding, there
would have been left only $200,000,000 (of
equity) for the remaining §250,000,000 of pre-
ferred stock, or a deficiency of $50,000,000, on
the preferred stock valuv (Lindabury) and
nothing left for the common stock ;?:? — 1563-4 .
fluctuations in stock 5 — 260,
common sold for 60 to 65 after organization and
preferred at par or better 5 — 259-61.
second-mortgage bonds sold at 84 at the time of
TCI. deal, but broke to 80 a few days later, and
recovered up to 86-89 .Z5— 860.
second-mortgage bonds went down to 78 1 — 14.
second-mortgage bonds went up after panic 1 — 15.
first-mortgage bonds 115; second 106 5 — 261.
preferred stock went to 49 ;?;?— 1575.
49 is lowest quotation that preferred stock reached 2f — 1575 .
preferred stock went to 49 not long after the
conversion plan went into effect ^^ — 1575.
$850,000,000 stock outstanding n—\hl^.
100,000 stockholders, and Perkins says this prob-
ably means 200,000 actual holders 22—1576.
20 per cent of stock held abroad 22—1576 .
common-stock dividends discontinued about that
time because earnings did not justify their
payment 22—1575.
bonds to be bought at 70 or better up $1,000,000
"as an investment for general depreciation and
extinguishment funds" USSC. Fin. Com.,
Jan. 6, 1902;
May 31, 1904.
bonds 1,000,000 bought at 107 by Perkins USSC. Fin. Com.,
June 26,
July 5, 1904.
bonds $2,646,000 sold to USS. Trust Co Fin. Com,,
May 1, 1910.
has bought its bonds for sinking-fund purposes.. 22 — 1590.
^^^^^^■iks at time of
5—132.
4710 UNITED STATES STEEL COKPOKATION.
XTNTTED STATES STEEL CORPORATION— Contd.
Securities — Continued.
interest on bank balances paid by Morgan of 2.6
per cent was not different from Morgan's policy
as to other depositors Z2 — 1560.
Morgan account was an active account 20 — 1426.
has had $40,000,000 to $75,000,000 balance in
banks all over the world. That was aggregate. 20—1425.
interest on balances is 2.6 per cent 20 — 1425.
CSCO. directed to make special loan from USSC.
upon 5 per cent notes CSCO. Dir.,
July 10, 1905.
$50,000,000 nonnegotiable 5 per cent notes from
subsidiary companies authorized USSC. Fin. Com.,
Nov. 11, 1904.
Dividends, etc. —
"in determining the profits since the company
was organized I take the amount paid as inter-
est on bonds, the amount paid as dividends on
stock and the amount expended for new prop-
erty, and the amount carried forward to sur-
plus" (Gary) ■ T. R., vol. 2, p. 1745.
total dividends at end of 1910 for 9J years were
68i, or $269,414,628.66 on preferred stock; and
24J per cent, or $124,512,257.50, on common
stock for 9| years; dividends equal 1\ per cent
on capitahzation 2 — 262.
total earnings of, stated and percentage shown to
be 7.3 per cent on total capitalization by Gary. . T. H., vol. 2, p. 1735.
gets income from dividends of subsidiary com-
panies and income from interest on loans T. H., vol. 2, p. 1737.
dividends paid out by USSC $262, 354, 600
interest paid out by USSC. . . . $180, 711, 000
surplus set aside $97, 645, 000
paid out for construction $163, 694, 000
depreciation is charged according to the value of
the original investment at time of purchase and
not subsequent appreciative value 6 — 356
depreciation and replacement should be calcu-
lated upon original investment and not upon the
anticipated value of the same 9 — 526.
but physical valuation must be taken as of date
of valuation 6 — 357.
Auditing — "new continuous ingot heating fur-
nace " proposed to be charged off to " Repairs " . USSC. Ex. Com.,
Feb. 11, 1902.
sinking funds to be kept separately for ore, etc. . USSC. Ex. Com.,
Jan. 6, 1903.
Management — Officers and directors —
management by officers and committees USSC. Com. ,
July 1-11, 1901.
Morgan was responsible head of the USSC 19 — 1401, 20 — 1423.
no meetings held except there were one or more
members of the house of J. P. Morgan & Co.
present 19— iiOZ.
Perkins remembers the following members of
Morgan firm that entered USSC: J. P. Morgan,
sr., J. P. Morgan, jr., Robert Bacon, Charles
Steele, E. T. Stoteabury 20—1419.
no one is eligible to the finance committee un-
less a member of the board. " " "
UNITED STATES STEEL, COEPOEATION. 4711
UNITED STATES STEEL CORPOKATION— Contd.
Management — Officers and dihectoes — Contd.
(Vouchers:) " OfBcials of the company might be
required to disburse money for corporate pur-
poses, the particular character of which it was
not advisable to fully set forth on the vouchers, ' '
question was raised whether auditors should
pass these vouchers to be decided by ruling of
theUSSO USSC. Aud. Min.,
July 9-10, 1903.
directors of USSC. may have interests in compa-
nies with whom USSC. contracts, providing
other directors authorize or confirm contracts.. USSC. By-laws, p. 14;
6-334.
Mar. 1, 1910.
officers and employees' interests in outside con-
cerns to be inquired into by committee USSC. Fin. Com.,
May 29, 1906.
boards of directors do not discuss prices 6 — 331-2.
purchasing agents keep data of purchases Gen. Man. Sal. Min.,
Feb. 16, 1910.
Credit men to work out an organization Gen. Man. Sal. Min.,
Oct., 1901.
Subsidiary companies —
USSC. has all powers to manufacture, etc., but. . 3 — 101.
but does not operating, and is purely a holding
company 3 — 102.
and is in absolute control of the subsidiary com-
panies 5—102.
holding all subsidiary companies 3 — 102.
"the presidents of the different companies fre-
quently meet for interchange of views. The
conclusions of the officers of subsidiary compa-
nies are reported to different departments of
the USSC, and recommendations but not in-
structions frequently made by the latter to the
former ' ' (Gary, at dir. meeting, Oct. 2, 1902) . . 2:2—1542-3.
decision by the presidents committee is referred
to by Gary in statement in minutes directors,
Oct. 2, 1902 n—\UZ.
"all expenditures over $10,000 must be approved
by the executive committee in New York,"
stated by Corey, president of the Carnegie
Steel Co 22—1556.
loans money to subsidiary companies 22 — 1556.
loan directed to be made by CSCO. from USSC.
upon 5 per cent notes CSCO. Dir. Min.,
July 10, 1905.
Directors —
statement of Gary' s membership in directorates of
companies both subsidiary to USSC. and others,
furnished and printed ^0 — 1417.
2-^-1758-1762.
Lindabury promises to furnish a similar list for all
directors 20—1417.
directors of various companies, list of 24 — 1758.
names of officers, finance committee, and direc-
tors of the International Harvester Co., and also
in the USSC .?2— 802.
directors of USSC, list of names of outside com-
panies in which they are also directors BiH'of complaint.
^ pp. 83-93, U. S. V. USSC
4712 UNITED STATES r^TEEL OOBPORATION.
UNITED STATES STEEL COEPOKATION— Contd.
Directors — Continued.
Samuel Mather was director of US.sr. and also of
Lackawanna Steel Co 5 — -22 .
William il. Moore is director USSi '. and of Aui'^ri-
can Can Co Bill of complaint.
US. !'. USSC.,pp.83-93.
Daniel C. Reid ia director of USy( '. and of Auin i-
can Can Co Bill of complaint.
U.S.D.USSC, pp. 83-93.
Edmund C. Converse is director of USSi and
American Can Co Bill of complaint,
U.S.TJ.USSC, pp. 83-93.
interlocking directorates give rise to practical
discriminations 9 — .53M.
(See American Can Co.; Ginning companiijs;
Standard Oil Co.)
alliance with large concerns referred to as one of
the causes for getting more business than com-
petitors; and business coming because of recip-
rocal relations CSCO. Dir.,
Feb. .5, 1909.
(See also AUia-Chalmers Co., of which (kiry was
formerly director.)
{See also USSC. "Financial and corporate opera-
tions by years.")
{See also J. P. Morgan & Co.)
"as J. P. Morgan & Co. are financing the i)n>])osi-
tion this tonnage will undoubtedly come to us, ' '
for sales to Argentine Republic ( 'SCO. Dir.,
Mar. 22, 1909.
GuVEBNMENT INVESTIGATION ANIJ CoMlIISSIONBR OF
Corporations. (See "Government" and "<.'om-
miesioner of Corporations.") —
minutes of directors referring to examination by
Commissioner of Corporations, and stating that
"quite likely in some respects we may be
traveling very near the line between propriety
and impropriety " 9 — 497-498.
ininutesof directors June 2(i, l!.)l.l(i, stat:.' that "the
Commissioner (of Corporations) did not pay any
attention to that resolution," referring to a
resolution passed by both Houses of <.'ongre3,s. to
investigate USSC 3 — 49.5.
minutes of directors referred to iuvestigaliou by
Commissioner of Corporations and state that th(!
finance_ committee have been in close touch
with this matter and have been in frequent and
almost constant communication with Commis-
sioner Garfield and more or less with the Presi-
dent himself, concerning this matter .9 — 4!)G^97.
Bo.VD-coNVERsioN PLAN. (See "Perkins.")—
.Xew Jersey act, 1902 (under which bond conver-
sion was made), provides that bonds may be
issued for preferred stock upon certain condi-
tions, in part, as follows: (1) floating or un-
funded debt must not exceed 10 per cent of
preferred stock outstanding, as certified by cer-
tificate filed with secretary of state; (2) assets
(after deducting indebtedness) must be certi-
fied, in the judgment of officers making certifi-
cate, to be at least equal to the amount of the
preferred stock issueci and oe*-* — '■"- ^j? "•""
UNITED STATES STEEL COKPOKATION. 4713
UNITED STATES STEEL CORPORATION— Contd.
Bond-conversion plan — Continued.
bond-conversion special meeting of stockholders
to be had after desired amendment of general
corporation law of New Jersey USSC. Dir.,
Mar. 4, 1902.
bond conversion — opinion of N. J. Ot. of Err. &
App., June, 1902, in Berger v. USSC gf— 1592-1602.
bond conversion was approved by 99.83 per cent
of stock (Lindabury) 22 — 1537.
bond conversion was approved by court because
99.83 per cent of stock approved it (Linda-
bury) 22—1511.
bond-conversion plan in letter of chairman USSC. Ex. Com.,
Apr. 19, 1902.
Perkins statement in re bond conversion 21 — 1513-16.
Perkins referred to what is considered the water
in the concern, and the plan for bond conversion
to get some of it out 20 — 1492.
Perkins says the second-mortgage bonds were bet-
ter security, were better than the preferred
stock, but he said the criticism might have been
made that they were not if a large amount had
been issued 20 — 1493.
Second-mortgage bonds were safer security be-
cause they were a prior lien and came before
the preferred stock ■. 22 — 1562.
bond conversion reduced dividend charges and
thereby made all stock more valuable and safe
(Perkins) 22—1563.
bond-conversion plan suggested by Perkins to
take up $200,000,000 preferred stock at 7 per
cent and issue $250,000,000 5-per cent bonds
and get $50,000,000 cash for nothing and save
interest difference between $12,500,000 and
$14,000,000 20—1490; 20—1480.
$500,000,000 preferred stock out, which was 7 per
cent cumulative, when bond conversion put
through
bond conversion reduced $200,000,000 7 per cent
stock to $250,000,000 5 per cent bonds and pro-
duced $50,000,000 without any cost 2i— 1510-16.
common stock was just the same after bond con-
version because, although the bonded debt was
increased $50,000,000, there was $50,000,000
cash received 22—1564-5.
Perkins does not accept Knox Smith's valuation
of the property 22—1565.
common stock was selling at 40 at time of bond
conversion 22—1565.
common stock is worth more now than at the time
of the conversion (Aug. 10, 1911), Perkins states. 22 — 1565.
bond conversion put $200,000,000 ahead of the
rest of the preferred stock 22—1538.
bond syndicate were obligated to produce $80,-
000,000 of stock for transfer into bonds 22—1578.
bond syndicate were to take as much as the stock-
holders did not take up to 40 per cent 22 — 1579.
bond syndicate— if it did not get $80,000,000 of
stock they would have to buy it 22 — 1579.
^^^*^"*^i^tai**^^"i*i«««Adepositing 40
^ - — for bonds. . . 22—1579.
4714 UNITED STATES STEEL, COEPOKATION.
TTNITED STATES STEEL CORPORATION— Contd.
Bond-conversion plan — Continued.
bond syndicate guaranteed the exchange of
$80,000,000 2^— lo79.
bond syndicate plan was to exchange $200,000,000
of stock, and syndicate guaranteed the conver-
sion of 180,000,000, and if no stockholder had
offered to exchange his stock for bonds the syn-
dicate vrould have had to convert $80,000,000
but no more 2:2—1579.
bond conversion actually only resulted iu the
conversion of $150,000,000 22—1580.
large number of stockholders converted their
stock and syndicate made up their balance,
and $150,000,000 was converted into bonds,
and there it stopped 22—1580.
bond syndicate not only guaranteed $80,000,000
stock for conversion, but the stock was actually
deposited 22—1580.
preferred stockholders had option for about IJ
years to convert 40 per cent of their preferred
stock into bonds. If all stockholders had con-
verted their stock, the syndicate would have
had the whole $80,000,000 on their hands, so
the guaranty contemplated that the syndicate
did not have to put up deficiency imder
$80,000,000 until the end of a year and a half. . 22—1581.
syndicate were required to deposit $80,000,000
at time syndicate was formed with syndicate
managers J. P. Morgan & Co. in trust to carry
out conversion plan 22 — 1581.
bond conversion was terminated because there
was a marked decline in the earning capacity
of the steel plants, which caused a decline in
the value of these securities; but preferred
stock dividend of 7 per cent was paid regularly;
and never since 1903 has there been any failure
to pay the preferred stock dividend 22 — 1584-5.
bond conversion was injurious, because when the
stock was low and the bonds high, the exchange
would have impaired the price of the bonds,
and in this way injured corporation's credit. . 22 — 1584.
stock quotations in connection with bond con-
version: May, 1902, common 41, preferred 91.
May 15, 1903, common 33f, preferred 84i.
Nov. 14, 1903, common lOJ, preferred 52|.
Dec. 15, 1903, common lOf, preferred 53^ 22—1581.
preferred went down to 49 not long after bond
conversion plan went into effect 22 — 1575.
second mortgage bonds sales ran up to $20,000,000
or $30,000,000 in November and December,
1907 i4— 955.
decrease in stock quotation between May, 1902,
and December, 1903, Perkins states, was due to
decreased tonnage and passing common-stock
dividend 22 — 1581.
Perkins says oflScers did not find bond conversion
hurtful to corporation and stockholders 22 — 1581 .
bond syndicate discontinued conversion of stock
at request of USSC. contained in letter of Gary
Nov. 19, 1903, which said "the continuance of
the conversion at the present wide disuaritv in
prices may be injurious to
credit and hurtful to the int.i =
holders"
UNITED STATES STEEL OORPOEATION. 4715
UNITED STATES STEEL COBPORATION— Contd.
BoND-coNVEBSiON PLAN — Continued.
bond conversion was discontinued notwitlistand-
ing stock was low and bonds were compara-
tively high in price. This, Lindabury sug-
gests, was advantageous to the syndicate,
stating "this contract had become one of
immense value to the syndicate " 22 — 1582.
Mr. Gamer suggests that conversion plan did not
cause low prices of stock, because the common
stock would have been benefited by the con-
version, and the low prices were due to other
causes f2— 1583.
1903 was time of severe depression as to all securi-
ties and all lines of business 22 — 1584.
during time of depressed prices, no member of the
bond conversion syndicate could have bought
stock on street and converted into higher priced
bonds, because the syndicate stock had already
been deposited, but stockholders could have
done so to the extent of 40 per cent 22 — 1585-6 .
Perkins states that it was impossible for anybody
to make great profit by exchanging the stock,
which was low in price, for the bonds, and Mr.
Gardner states that if that were so, the stock
would have risen in price to a price equal to the
bonds. But Mr. Perkins also stated that the
reason the bond conversion was discontinued
was because there was so great a disparity be-
tween the stock and the bonds that the bonds
were being depressed 22 — 1586-7.
bond conversion to the amount above $80,000,000
guaranteed by the syndicate up to the amount
actually exchanged, i. e., $150,000,000, must
have been made up by voluntary exchange by
stockholders, as Lindabury states, and Perkins
swears he does not know how it was made up . 22 — 1589.
syndicate members did not make any profit in
exchanging stock for bonds in the bond con-
version (Perkins) ■ 22—1589.
has not bought or sold its stock, except for profit-
sharing plan 22 — 1589.
Perkins states that no one connected with the
syndicate made any profit in the bond conver-
sion, except per cent stipulated in contract 22 — 1589.
bond conversion resulted in exchange of
$150,000,000 of bonds for $150,000,000 preferred
stock 2:2—1537 .
and $200,000,000 they started out to exchange
was not exchanged
bond conversion, contract surrendered beyond
$150,000,000 by J. P. Morgan & Co USSC. Fin. Com.,
Dec. 1, 1903.
bond conversion, surrender USSO. Dir.,
Dec. 1, 1903.
bond conversion, contract surrendered letters... USSC. Fin. Com., Supt.,
Extract.
Dec. 1, 1903,
Dec. 22, 1903.
bond conversion, syndicate commission was
$6,800,000 22— 153S.
bond conversion, operation of 22 — 1538-9 .
^ — — )T the risk en-
that it could
. 22-1558-9.
4716 UNITED STATES STEEL COBPOKATION.
UNITED STATES STEEL CORPOEATION— Contd.
Coke and coal —
USSC. maximum capacity for coke is 33,500 tons
per day, requirements 32,500 tons, leaving
1,000 tons surplus, which, with 1,400 tons from
Oliver contract, leaves 2,400 tons surplus USSC. Ex. Com.,
Oct. 14, 1902.
Estimated coal land 60,003 acres owned Oonnells-
ville district. 1,515 on royalty Connellsville
district. 30,252 acres owned Pocahontas dis-
trict. 3,548 acres on royalty Pocahontas dis-
trict. CExcluding TCI. properties) T. H., vol. 2, p. 1 7(;i.
Pittsburgh coal contract 4 — 159.
purchase 7,500 acres coking coal, $1,450, and
8,000 acres, -5850, from Pittsburgh and river
companies 4 — 159.
Pittsburgh Coal Co. contract better than owner-
ship of Pittsburgh Coal Co., because Pittsburgh
Co. is furnishing coal cheaper than Pittsburgh
Co. can produce it profitably 4 — 159.
Pittsburgh coal contract in Moody's Manual, 1905. 4 — 160.
contract for purchase 17,000 acres distinct from
contract with Pittsburgh Co. for steam coal 4 — 164.
now buying 17,000 acres coking coal 4 — 163
Competition —
if tariff were taken off, competitors would soon
be out of business, and USSCJ. would have
field, but Gary said: "We do not want those
conditions," and "I think it would be the
worst thing that could happen to United States
Steel, because the people would not stand for
it " T. H . , vol . 2, p. 1706-79.
knows that the worst thing that could happen to it
would be to obtain monopoly or restrain trade. . 4 — 177.
could drive competitors out where they manu-
facture cheaper T. H., vol. 2, p. 1750-1.
competitors C(]uld be driven out of business 1 — 54.
by competition could have worried competitors
on account of possessing the most efficient
management and equipment 8 — 428.
raw material not to be sold to regular trade Gen. Sal. Man. Min.,
Mar. 21, 1906.
Apr. 18, 1906.
was formed not to eliminate destructive com-
petition but for advantage of reduction of costs,
says Schwab M— 1320.
before formation of, destructive competition had
ceased except the destructive competition in
tubes which some people anticipated
combination was to get reduction in cost by
economies IS — 1331-32.
prime motive in the organization was the elimi-
nation of competition and the steadying of
prices 9—468-9, 471.
would not undersell price list or reduce prices
without notifying competitors 2 — 275.
Gary says they can keep the price down but they
can not keep it up 3 — 92.
competitors have attempted to put up prices but
USSC. have declined to put them up 3 — 92.
UNITED STATES STEEL CORPOBATION. 4717
UNITED STATES STEEL CORPORATION— Contd.
Competition — Continued.
producing 50 or 60 per cent of the raila could .
have advanced the price as proposed in the
minutes, and the independents could not have
opposed 19 — 1403.
not to engage in competitive business with
Crucible Steel Co ii—U-11.
Commission of Corporations declined to state,
under the law whether there had been an agree-
ment between the International Harvester Co.
andtheUSSC 1^—802.
purchase of boiler tube plant at Buffalo USS(J. Fin. Com .^up.
Exx.,
Feb. 16, 1904.
Export. {See "Export.")—
desired to increase export business by forming,
Gary says 4—206 .
export business one of principal reasons for
forming USSC .?— 96.
not much export business until after formation
of USSC .?— 96.
devoted Allentown plant exclusively to export
trade 75-1298 .
Financial operations. (See also General chrono-
logical.)—
Gary says one advantage of the combination Ls
that they ' ' have a large sum of money which we
keep at a central bank " i — 104 .
Interstate Transit Co. contract with Illinois
Steel Co. giving prefeiential right to use 1,194
cars in consideration of agreement of Illinois
Steel Co. to pay unpaid balance upon 60
promissary notes for $440,000 in case of default
by Interstate Transit Co 111. St, Co., Dir.,
May 7, 1890.
PN. & LE. leased to B&LE. with guaranty of 6
per cent on preferred and 3 per cent on com-
mon, so that earnings will not all go to stock, of
which Carnei^ie Co. owns only 50 per cent. . . . Carnegie Dir. ;
Jan, 9, 1901.
Colorado Fuel & Iron Co. stock to be acquired by
Morgan & Co. suggested USSC. Dir. :
Mar. 30, 1901.
resolution to acquire USS(.'. Dir. ;
Apr. 1, 1901.
Toledo Bridge Co. bought by AMBCONJ. for
$1,050,000, payable in $700,000 preferred
and $350,000 common stock of AMBCONJ.
Toledo Co. had assets $606,586, and capital of
$250,000 VMBCONJ. Dir.;
Apr. 18. 1901.
Granite City Wire Works, Voncamp proposition
referred to in telegram from Alfred Clifford to
Max Pam, dated Apr. 24, 1901, relating to pur-
chase of judgnient, redemption, etc., referred
to EdenbornVith power USSC. Ex. Com. ;
-\pr. 25. 1901.
National Transit Co., " connection of the Standard
Oil Co. with new organization," considered in
giving the National Transit Co. price of 1.50 ^
centsinsteadof quoted price of 1.60 cents CSCO, Dir.;
Apr. 30, 1901.
4718 UNITED STATES STEEL COEPOEATION.
UNITED STATES STEEL COBPORATION— Contd.
Financial operations — Continued.
Canadian Bridge Co., stock control and directors
nominated by AMBCONJ AMBCONJ. Dir. ;
May 16, 1901.
Straits Trading Co., Phelps, Dodge & Co. had
some control over and it ■would be well to con-
fer with them if anything turned up USSC. Ex. Com.;
June 25, 1901.
Shelby Steel Tube Co., 1 share preferred USSC.
for 2J shares preferred Shelby Co. ; 1 share com-
mon USSC. for 4 shares Shelby Co. Total
Shelby preferred stock $5,000,000 and $8,150,-
000 common stock USSC. Fin. Com. ;
Aug. 8, 1901.
cost $4,000,000 25—1639.
purchase negotiations $S — 1635-9.
could make 50 per cent 25—1639.
American Land Co. sold to ASWCO. for not ex-
ceeding $823,667.95 or $600,000 and debts ASWCO. Dir. ;
Sept. 9, 1901.
Detroit Bridge Co. plant property and assets
bought for $600,000 AMBCONJ. Dir. ;
Nov. 12, 1901.
Canadian Steel & Wire Co. to be incorporated by
Keefe, Baackes & Miller, $200,000 capital, with
3 field fence machines at Hamilton, Canada. . ASWCO. Dir.;
Dec. 9, 1901.
American Land Co. counsel say it is inadvisable
for this company to hold stock of American
Land Co., but property such as needed to be
transferred ASWCO. Dir.;
Dec. 9, 1901.
American Can Co. to divide its profit with Ameri-
can Tinplate Co. and American Tinplate Co.
to divide its profit with Can Co. upon order of
Glucose Co., which threatened to go into busi-
ness of making its cans ("Moore & Keid Dir."). USSC. Ex. Com.,
Apr. 17, 1902.
Pressed Steel Car Co. and Geo. A. Fuller Co.
plan to control these concerns by outside plate
makers would be unfortunate for USSC, but
plan for USSC. to obtain control was left in
abeyance USSC. Ex. Com.,
Apr 17 1902
Lamb Wire Co. bought by ASWC ASWC.Dir., *
Apr. 21, 1902.
Bellaire Steel Co. purchase of $150,000 of bonds
at par or better, treasurer of USSC. authorized
to make USSC. Pin. Com.,
May 6, 1902.
Michigan Central R. R. $5,000,000 first-mortgage
bonds, treasurer USSC. directed to purchase
at 104 USSC. Fin . Com. ,
May 13, 1902.
Griswold Wire Co. "are the only ones making
ties in opposition to our company," and pur-
chase of them voted for $75,000 or better USSC. Ex. Com.,
June 3, 1902.
Page Woven Wire Co. purchase referred to com-
mittee ASWC. Dir.,
July 15, 1902.
American Car & Foundry Co., its business can
always be had on equal basis Gen. Man. Sal.'Min.
UNITED STATES STEEL OORPOEATION. 4719
UNITED STATES STEEL CORPORATION— Contd.
Financial operations — Continued.
Michigan Central R. R. $5,000,000 bonds, sale of,
approved USSC. Fin /Com.,
Dec. 9, 1902.
J. P. Morgan & Co. put through bond conversion
of USSC 2^-1510.
(1902-3).
were financial agents of USSC 21 — 1510.
Troy Steel Products Co. "A memorandum
agfreement was approved, dated Dec. 24, 1902,
with A. C. Bedford, representing John D.
Rockefeller, H. H. Rogers, and others, being
the owners of a majority of the securities of the
Troy Steel Products Co., which company is the
owner of the plant known as the Troy Steel
Plant, not less than a majority interest to be
purchased for the sum of $1,100,000, payable
either in cash or in the proposed second-mort-
gage 5 per cent bonds
"The finance committee was authorized to deter-
mine the final disposition of said Troy Steel
Plant, and whether the same shall be vested in
one of the subsidiary companies; and if so,
which one" USSC. Dir.,
Jan. 6, 1903.
Union Steel Co. purchase of all capital stock and
guaranty of $45,000,000 bonds USSC Dh.,
Jan. 6, 1903.
Cramp Ship Building & Engine Building Co.'e
14,000,000 bond issue to be floated CSCO. Dir.,
Feb. 16, 1903.
Youngstown Iron, Sheet & Tube Co., 2,000
shares purchased from Frick for $211,196,
promissory notes payable on or before five
years after date with 5 per cent interest, by
USSC. (J. G. Butler's Co.) USSC Fin. Com.,
Feb. 17, 1903.
Union Steel Co. bought various plants named. . . Union St. Co.,
Feb. 18, 1903.
mortgage $45,000,000 to New York Security &
Trust Co Union St. Co. Stock,
Feb. 18, 1903.
Sharon plants to be bought for new bonds Union St. Co. Dir.,
Feb. 18, 1903; Feb. 21,
1903.
Jackson Architectural Iron Works owes CSCO.
about $50,000 and various banks, and Wilson
of Jackson Co. is not well posted on their finan-
cial affairs CSCO. Dir.,
Mar. 16, 1903.
American Car & Foundry Co., arrangement en-
deavored to be made by CSCO. to have them
close down their bar mills and buy from CSCO. CSCO. Dir.,
Mar. 16, 1903.
DMN. bond of $1,000,000 of USSC. given to Cen-
tral Trust Co. by reason of that company waiv-
ing clause in indentures given by DMN USSC. Fin. Com.,
Mar. 19, 1903.
Clairton Steel Co. property to be sold to USSC,
55 per cent to be taken by USSC. Crucible
Steel Co. to retain 35 per cent and Snyder to
procure 10 per cent USSC. Fin. Com.,
Mar. 19, 1903.
4720 UNITED STATES STEEL CORPOEATION.
UNITED STATES STEEL COEPORATION— Contd.
Financial operations — Continued.
Troy Steel Products Co. plant operation deferred
•n account of having no coke or ore, and
changed conditions from what existed when
plant wa« acquired USSC. Ex. Cora.,
Apr. 28, 1903.
Oramp, Wm., & Sons Ship & Engine Building
Co. Payment authorized for subscription to
$550,000 face value of notes of Cramp Co USSC. Fin. Com.,
Apr. 28, 1903.
Cramp Co. "Mr. McCausland: The Oamp Co.
borrowed $5,000,000, $500,000 of which had
been .'iubscribed by the corporation. Twenty
per rent of the money has been paid in, and
they expect 20 per cent more in about another
week, the balance will follow from time to time.
The company will be controlled by three voting
trustees, and it is the intention to reorganize it
and try to make it a success" (!SCO. Dir.,
May 4, 1903
New Jer.iey Steel & Iron Co., all assets sold to
AMBCONJ. for $674,736.92 and plant leased
for $13,766.67 AMBCONJ. Dir.,
Se]>f. 17, 1903.
Great Western Mining Co., mining contract guar-
anty by USSC. to be exhibited to stockholders. USSC. Dir.,
Feb. 26, 1904.
Clramp, Wm., & Sons Ship & Engine Building
Co. "Letter was read from Drexel & Co. of
Philadelphia, in regard to an extension of syn-
dicate agreement in connection with the sub-
scription of $5,000,000 for Wm, Cramp & Sons
Ship & Engine Building Co. 5 per cent notes
secured b\' consolidated mortgage bonds until
Jan. 1, 1906, unless sooner terminated at the
option of the syndicate managers. Whereupon
on motion and by the affirmative vote of all
present, the treasurer was authorized and in-
structed to consent to such extension on hehalf
of thJH corporation" USSC. Fin. Com., Sup.
Ext.
Mar. 8, 1904.
Clairton Steel Co., contract for purchase of,
adopted USSC. Fin. Com.,
Apr. 29, 1904.
Harvey United Steel Co. (Ltd.), concessions
from, de.'^ired by CSCO., one of which is that
we want to be protected from Midvale to the
extent of th e royalty on the armor CSCO . Dir. ,
June 27, 1904.
Passaic rolling mill bought USSC. Pin. Com.,
Mar. 7, 1905.
American Improvement Co., 50 shares of, bought
by AMBCONJ AMBCONJ. Dir. ,
Apr. 1, 1905.
Oliver Iron Mining Co., 2,000 shares of stock for
$2,250,000 par value of stock of CSCO. bought. CSCO. Dir.,
Apr. 3, 1905.
Hecla Coke (.'o. together with Hecla Supply Co.
bought for $2,000,000 HCFCCO. Dir. ,
Apr. 26, 1905.
I4aiy plant, (."hicago Lake shore land tract pur-
chased for .$4.50 per acre USSC. Fin. Com.,
Sept. 5, 1905.
UNITED STATES STEEL GORPOEATION. 4721
UNITED STATES STEEL COEPORATION— Contd.
Financial operations — Continued.
Oliver Iron Mining Co., $200,000 of stock, or
one-sixth thereof, bought from USSC. for
$2,250,000 stock of Carnegie Steel Co., New
Jersey CSCO. Dir. ,
Nov. 20, 1905.
Colorado Fuel & Iron Co. , purchase of 10 sheet and
10 tin mills at 25 per cent of value by AMSHT&
TPCO. recommended USSC. Fin. Com.,
Dec. 12, 1905.
Mahoning Limestone Co., CSCO. subscribed 51
per cent of stock of, will take over assets of
Lowellville Limestone Co CSCO. Dir.,
Feb. 5, 1906.
Pennsylvania Co. $5,000,000 guaranteed 4J per
cent 18 months' notes subscribed for by USSC.
through Kuhn, Loeb & Co USSC. Fin. Com.,
May 15, 1906.
Pennsylvania Co. $5,000,000 4J per cent 18
months' notes subscribed for USSC. Fin. Com.,
May 15, 1906.
New York, Chicago & St. Louis 4 per cent
debenture bonds to be bought with surplus
funds, Norfolk & Western R. R., and Union
Steel Co. up to $1,000,000 USSC. Fin. Com.,
May 29, 1906.
Columbus Stone Co. one-third interest bought by
CSCO. for $32,674.83 CSCO. Dir,,
June 11, 1906.
$2,000,000 loaned to Union Pacific Ry. Co USSC. Fin. Com.,
July 24, 1906.
$1,000,000 notes of American Telephone & Tele-
graph Co. bought USSC. Fin. Com.,
July 24, 1906,
$3,000,000 loaned to Union Pacific R. R. Co USSC. Fin. Com.,
Aug, 14, 1906,
Milliken Bros, in hands of receivers, and rolling
mills shut down, and intention is to operate
only structural plant. They are in the market
to buy 45,000 tons in next six or eight months
and additional steel they may need for new
contracts. This tonnage they have figured on
making themselves, but it will now come to the
market, and although it may not come to the
CSCO., "but in any event it means that much
capacity shut down" CSCO. Dir.,
^ ' June 24, 1907,
AUis-Chalmers Co. advanced payment to, on
account of contracts set forth CSCO, Dir,.
Sept, 2, 1907.
AUis-Chalmers Co. , $200,000 loaned to, on accounts .
receivable and bonds, by USSC USSC. Fm. Com.,
Sept. 17, 1907.
Westinghouse Machine Co., $200,000 advanced
to, by USSC. on contract USSC. Fm. Com.,
^ Oct. 1, 1907.
Atlanta Compress Co., Harrison, president, is to
dispose of stocks of 18 ginning companies using
square-bale process, which are not profitable,
^^^^^^y^^^o JuTeVlm
Schoen Steel Wheel Co., CSCO. bought, for
$650,000 cash, $946,000 first-mortgage 5 per
r-ATit. wld bonds of Schoen Co., and CSCO.'s
ng bonds of
CSCO. Dir.,
July 2, 1908.
4722 UNITED STATES STEEL COKPOEATION.
UNITED STATES STEEL COEPOBATION— Contd.
PiNANCiAi, OPERATIONS — Continued.
Milliken Bros, to be taken out of receivership,
and going ahead Tvith 2 blast furnaces, billet
and bar mills. To use ore and east-
ern limestone, and will have to figure on getting
coke out of Pittsburgh rerion CSOO . Dir. ,
Nov. 9, 1908.
$236,000 recommended for extension of Universal
Portland Cement Co USSC. Fin Com. ,
Nov. 10, 1908.
Cramp first order, taken by CSCO . under new con-
ditions (i. e., after corporation cut loose from
policy of cooperation), was the award for the
shapes for the Government collier awarded to
Cramp CSCO. Dir.,
Feb. 12, 1909.
DeKalb Fence Co., entire capital stock 1,000
shares and Union Fence Co., 500 shares, bought
for$275,000 ASWC. Dir.,
Mar. 16, 1909.
Union Fence Co., capital stock 500 shares, and
DeKalb Fence Co., capital stock 1,000 shares,
bought for $275,000 ASWC. Dir.,
. _ _ Mar. 16, 1909.
J. P. Morgan & Co., financing proposition to
CSCO. for 34,000 tons, and " as J. P. Morgan &
Co., are financing the proposition, this tonnage
will undoubtedly come to us (CSCO.)" CSCO. Dir.,
Mar. 22, 1909.
Monongahela Southern R. R. Co., bonds $3,000,-
000 issued and guaranteed by USSC USSC. Dir.,
Mar. 30, 1909.
Oliver Iron Mining Co., expenditure by, of
$10,625,000 for stripping and mining ore in Buf-
falo & Susquehanna mine in return for traffic
contract covering 19,000,000 tons of ore devel-
oped USSC. Fin. Com.,
May 4, 1909.
Gary plant, $6,210,000 for by-product coke plant. USSC. Fin. Com.,
May 4, 1909.
Union Dock Co., Ill shares owned by this cor-
poration, sold Union St. Co. Dir.,
June 4, 1909.
guaranteed $9,000,000 of bonds of CLS&ERR.
after guaranty by EJ&E. and lease of CLS&
ERR. to EJ&E. advised by legal department.. USSC. Fin. Com.,
Apr. -June 22, 1909.
ginning companies, 675 shares of 18 small com-
panies, bought for 319,050 and marked down to
$8,651.25 (as advised by Mr. Harrison, of At-
lanta Compress Co.), can not be sold for more
than 30 to 40 cents on the dollar. Mr. Bope
recommends the sale of these stocks, "and as
the purpose for which they were taken has not
been accomplished, as evidenced by the fact
that the shipments of cotton ties this year
amount to about 2,500,000 bundles, we may as
well sell them." "These are stocks of the
companies which favored square bales for cot-
ton and used our cotton ties exclusively". . .. CSCO. Dir.,
June 8, 1909.
CELS&ERR. §9,000,000 bonds bought and to
be sold with guaranty of USSC USSC. Dir.,
June 29, 1909.
UNITED STATES STEEL OORPOBATION. 4723
UNITED STATES STEEL COaPOBATION— Contd.
Financial operations — Continued.
Duluth plant, $10,000,000 recommended for
plant USSO. Fin. Com.,
Sept. 28, 1909.
Ohapin Mining Co., sale of stock of Winthrop
Iron Mining Co., and Chapin Mining Co.
owned by this company, to the Minnesota Iron
Co., and the acceptance in payment therefor
of promissory notes of the Pittsburgh Steam-
ship Co., and the increase of capital stock of
Pittsburgh Steamship Co., and the purchase of
said increased capital stock by such notes, was
requested by Mr. Filbert, comptroller of the
USSC.
The Pittsburgh Steamship Co. capital stock was
increased to $7,880,000, and the additional
stock issue of $6,660,000 was bought by the
Carnegie Steel Co., New Jersey, for $6,550,000
of promissory notes of the Pittsburgh Steamship
Co., aggregating $6,550,000 CCSO. Dir.,
Oct. 25, 1909.
Gary plant cost estimated by Thorp $3,765,000
and by Reis $3, 500 ,000 USSC. Fin. Com.,
Nov. (3), 1909.
Oliver Iron Mining Co., expenditure of $8,468,-
193.75 for stripping, etc., referred in 1910 re-
ferred to special committee USSC. Fin. Com. ,
Dec. 14, 1909.
Michigan Iron & Land Co. lands of, Oliver Iron
Mining Co. recommended to take options upon
400,000 acres, question was referred to special
committee USSC. Fin. Com.,
Dec. 22, 1909.
Monongahela River Consolidated Coal & Coke
Co., President Dempster offers River Coal Co.
for sale for $32,431,140 referred to Gary, Frick,
and Perkins USSC. Fin. Com.,
Jan. 5, 1910.
Gary plant, $3,000 per acre for 20 acres received
for land sold to Pittsburgh Screw & Bolt Co. . . USSC. Fin. Com.,
Jan. 25, 1910.
Gary plant AMBCONJ., $2,700,000 appropriated
for AMBCONJ. Dir.,
Mar. 15, 1910.
Universal Portland Cement Co. In September,
1906, this company delivered its entire capital
stock, $1,000,000, to Illinois Steel Co., for ce-
ment properties; but in June, 1908, it leased
from said Illinois Steel Co. cement plants des-
ignated plants No. 2, No. 3, and No. 4, for a
rental of 80 per cent of the net income of the
company after paying taxes and expenses of
operation, and after setting aside $25,000 for the
cement company; and it also leased from the
Carnegie Co. a cement plant for 20 per cent of
the net income of the cement company after
paying $25,000 for the cement company's use.
(These rentals were changed to 60 per cent for
the Illinois Co. and 40 per cent for the Carnegie
Co. in June, 1910). (It has not been seen what
was received by the company for the stock is-
sue of $1,000,000) Minutes Un. P. Port. Ce-
ment Co.,
Sept., 1906;
June, 1910.
4724 UNITED STATES STEEL COEPOEATION.
UNITED STATES STEEL COBPOKATION-Contd.
Financial operations — Continued.
Anthony Fence Co., Tecumseh, Mich., bought
for $200,000 ASWC. Dir. ,
June 21, 1910.
American Refractories Co. asks loan of $250,000.
Referred to chairman and president with
power USSC. Fin. Com.,
Sept. 27, 1910.
Chicago, Cincinnati & Louisville R. R.; acquisi-
tion of by USSC. suggested USSC. Fin.JCom. ,
Feb. 24, 1910.
Jones & Laughlin had to put out an additional
issue of $10,000,000 of bonds, and they have
used the first issue of $15,000,000 CSCO. Dir.,
May 29, 1911.
Morgan & Co.. $10,000,000 par value of Illinois
Steel Co. debentures sold to J. P. Morgan & Co. USSC. Fin. Com.,
June 26, 1911.
guarantees bonds of HCFCCO. in payment for
Pittsbiu-gh and Monongahela companies coal
lands HCFCCO. Dir.,
June 26, 1911.
J. B. & J. M. Cornell owe CSCO. $50,380.64, se-
cured by 80 bonds of paid Cornell Co., of 81,000
par value. Frederick J. Home, as attorney for
CSCO., to execute voting trust agreement CSCO. Dir.,
July 3, 1911.
Pittsburgh Coal & Coke Co., purchase by USSC.
of 7,500 acres coking coal of Pittsburgh Co. at
$1,450 and 8,000 acres coking coal of River Co.
at $850, to be paid for by bonds issued on the
coal, guaranteed by USSC. This enables Pitts-
burgh to effect complete absorption of River
Co., to be accomplished by issue of $6,000,000
5 per cent bonds of Pittsburgh Co. in exchange
for $7,500,000 preferred stock of River Co. held
by public and $5,000,000 of Pittsburgh Co.
common to be exchanged for $5,000,000 com-
mon of River Co 4 — 159.
Pittsburgh Co. contract better for USSC. than
ownership of Pittsburgh Co., as USSC. get coal
cheaper than coal can be produced profitably . . 4 — 1 59 (1911 ) .
JoBBEKS AND RETAIL BUSINESS. (See Jobbers, Gary
dinner, and Gary.) —
has retail concerns in East and one in Chicago;
the Illinois Steel Co. one at St. Louis, Pitts-
burgh, and Cleveland 17 — 126.
has been in jobbing business for last 3 or 4 years. . 17 — 126.
has gone in the jobbing business at points named . 17 — 126.
contract with jobbers provides that the jobbers
will carry no stock "but that manufactured by
the corporation in its particular lines," and will
give up direct shipments Gen. Man. Sal. Min.,
June 17, 1909. {See last
page.)
USSC. has gone into jobbing (or retail) business in
East and "one at Chicago — the Illinois Steel
Co. — and one at St. Louis, Pittsburgh, and
Cleveland " (Topping) 17 — 126,
protection of jobbers is referred to by Gary in jus-
tification of attempt to maintain prices by din-
ners and cooperation j — 76.
Tufts & Co. sell the product "' *'-" rra^n ,-„
Texas, no matter what that pr
sell of the products of wire si
75 per cent
UNITED STATES STEEL COEPOBATION". 4725
UNITED STATES STEEL CORPOBATION— Contd.
Labor —
employees and wages, see ' ' Labor " USSC . Fin . Com . ,
Dec. 2, 1902.
reduced wages once under Corey as president in
early years, but not since 22 — 1568.
has much more than made up the reduction in
wages 22—1568-89.
Perkins believes living conditions of labor are
better than before organization 22 — 1568.
Perkins says hours of labor have been shortened,
but also swears he can not testify as to hours of
labor 25—1606.
inducement is held out to earn 12 or 15 per cent
interest in stock-ownership plan t% — 1575.
those that remain in divide the shares of interest
due to those who drop out 22 — 1575.
stock-ownership scheme is beneficial, and would
tend toward condition where each holder would
. be like a partner, which would be very advan-
tageous condition, according to Perkins ^t — 1574.
report as to employees' stock subscription is dated
Dec. 31, 1910, and refers to subscriptions in
Jan., 1911 22—1570.
profit-sharing plan 22 — 1570.
Ore. {See. "Ore," "Ore hand," "Competition,"
"Raw material," etc.) —
ores are valuable to USSC. in the Mesabi region
for the reason that it has unusual facilities for
transportation 5 — 638.
mines its own ore and pays freight to the road
that carried it 19 — 1413.
ores practically all high-grade ore 8 — 436.
owns all Vermilion Range, containing 7,584,870
Bessemer ore and 1,535,351 non-Bessemer ore,
and considerable silicious low-grade ore S — 85.
do not sell ore S — 85.
some of Iron Co.'s leased ore from Great Northern. S — 88.
leased the Great Northern Co.'s portion of
Mesabi Range _. ■5—88.
owns title or leases 50 per cent from various
people 5—89 .
leases or subleases from Hill or Great Northern. . S — 89.
Smith, when asked if the difference between the
valuation of $100,000,000 as against $700,000,000
by the USSC. of the ore, grows out of the com-
bination and monoply, states that he would
read the language of his report at page 50:
"Moreover, a considerable part of whatever
actual appreciation has occurred in ore values
(that is, up to 1910), undoubtedly is due to
the rapid concentration of ore property in the
hands of a few interests, and especially in the
hands of the Steel Corporation itself 9 — 482.
1902 estimate of ore value at $1 a ton was full
high in the opinion of L. C. Hanna IS — 870.
ore value was calculated upon the theory of the
present worth of the dollar 40 years hence, by
Smith 9-526-7.
4726 UXITED STATES STEEL COEPOKATION.
UNITED STATES STEEL CORPORATION— Contd.
Orb — Continued .
USSC. took a flat rate of 11 a ton, irrespective of
whether that ton was to be mined 40 years from
now or to-day 9 — 527.
ore values were submitted in the Hodge suit;
both expert appraisals and a round value of
$700,000,000 9—527.
Schwab estimates that 5700,000,000 is in iron 8 — 436.
Hill lease royalty at average of 40 cents per ton
would be very cheap for standard grades of
ore, in the opinion of L. C. Hanna, from 1907
to the present time 13 — 870-71.
ore was valued at $100,000,000, but this was a
mere valuation and practically it may be
worth more to the USSC 9—481.
certainly had 700,000,000 of ore tons before it
absorbed TCI 9—546.
estimated tonnage of all grades of unmined ore
held by the USS< !'. (Munsey's Magazine article,
June, 1908), 1,182,815,200 tons in all (exclusive
of Great Northern and TCI. ore) T. H., vol. 2, p. 1759.
owns 75 or 80 per cent of Lake Superior ore
(Dec. 21, 1901, Schwab) 18— 12S2-1.
has now 75 per cent of the ore 9^81.
USSC, Gary believed, had (i5 or 70 per cent of
best ores in Northwest 3 — S3.
USS. Corporation has 50 per cent (Govt. Rept.) of
ore 5—80.
Willard Hayes, of the Geological Survey, esti-
mates that the mines in Michigan and Minne-
sota had in reserve about 3,500,000,000 avail-
able gross tons of merchantable ore, and the
USSC. estimates that they have 1,750,000,000
•tons, which is 50 per cent 7 — 398.
Gayley says that USS<". has between 40 and 50
per cent of the ore now available, excluding
Utah, California, and practically all west of the
Mississippi, and the Texas and Wyoming ores. . 7 — 406.
statement in report, Dec. 31, 1910, of iron mines
does not include all ore land but mines devel-
oped included S — 108.
tables of statistics of the American iron trade for
1910, showing ore shipments and production of
different grades of iron and steel 7 — 417-18.
Annual Report, 1910, shows (p. 17) 25,245,816
tons and deducting TCI. and R. R. ore, leaves
23,264,515 tons produced in Lake Superior
region 5—109.
produced and mined in Lake Superior district l)v
USSC: 1909, 45.6 per cent; 1908, 46.3 per cent;
1907, 43.3 per cent; 1906, 43.2 per cent; 1905,
43.4 per cent; 1904, 37.9 per cent; 1903, 43.8
percent; 1902, 45.1 percent. "Independents,"
so-called, 54.5 per cent 5 — 109.
have procured ore property- in Cuba 7 — 405.
has interest in Cuban ore 18 — 1343.
USSC. owns Cuban ores 5 — 107.
has probably 100,000,000 tons of Cuban ore i.5— 1029.
UNITED STATES STEEL CORPOEATIOX. 4727
UNITED STATES STEEL COEPORATION-^Contd.
Ore — Continued.
Gary denies that USSC. has practical control of
the ore, and explains his testimony before the
Ways and Means Committee as follows: "But
at that time, I believed the United States Steel
interests had control of something like 65 or 70
per cent of the best ores in the Northwest, and
I believed the ores which others had would be
exhausted before the ores in the control of the
United States Steel Corporation. If so, the
time would come when they would be in pos-
session of some of those ores after the others
were exhausted; and then, of course, the others
would be compelled to use ores which at the
present time are not even merchantable, which,
as I have said, are scattered all over this coun-
try. In the different ranges of mountains
there are billions of tons " S — 83.
Political Contributions. {See "Political contri-
butions")—
Opinion of John G. Johnson, of Philadelphia, and
Davit T. Watson, of Pittsburgh, that this Cor-
poration has no right to make USSC. Fin. Com.,
June 12, 1906.
request received for contribution for leading poli-
tician who was a candidate for reelection ; opin-
ions of lawyers to be obtained; and referred to
chairman USSC. Fin. Com.,
Apr. 10, 1906.
State by Lindabury, to have made campaign
contribution of $10,000 in 1904 2i— 1499
made no campaign contributions after 1906 when
resolution was passed forbidding it 21 — 1499
notwithstanding advice of counsel, continued to
contribute to tariff league and for books as it
had done in the past 20 — 1434-5
contribution to tariff league for publication was
in interest of corporation, and for education 22 — 1560.
did not engage to any great extent in Welfare
work for the benefit of employees 20 — 1435.
Pools. (See "Pools and associations") —
Lindabury states that nobody claims that Schwab
as president was unaware of the existence and
operation of the pool agreements with the Car-
negie Company and the three other subcom-
panies 22 — 1544.
Pool agreements, Perkins states he did not know
of and refers to ambition and pride of the sub-
ordinates as explanation for the existence 22 — 1544-5.
Baackes was member of the Wire Bope Associa-
tion iO— 569.
one of the subsidiaries was connected with the
pools, .though not directly, as Lindabury states . 10 — 567 .
Trenton Iron Co.: Listed in Red Book of Wire
Rope Association as having a store in New
York City iO— 574.
Griswold Wire Co. "are only ones making ties in
opposition to our company" and purchase
voted for $75,000 or better USSC. Ex. Com.,
June 3, 1902.
4728 UNITED STATES STEEL, CORPORATION.
UNITED STATES STEEL COBPORATION— Contd.
Prices. (See "Pricea," "Competition," and "Poole,"
etc.)—
used influence to prevent raising prices of steel
commodities when demand greater than supply S — 97,
has reduced prices to consumers generally rather
than to a few powerful and favored customers. . 2S — 1624.
allows a rebate of $1 to Harvester Co ^1 — 1517.
sold Crucible Steel Co. 200,000 tons a year maxi-
mum at $3 below market price , ^S — 1626 .
International Nickel Co. sells to it at 5 cents lees
per pound than to other customers except Beth-
lehem Steel Co £5—1633.
USS. Corporation's influence has caused stability
in steel market S — 80.
USSO. 's influence has held prices down on rails. . S — 97.
imnounced by Gary that it would maintain prices . 7 — 373.
excluding 1899 and 1900, prices have been lower
since formation of USSC 75—1332.
has no agreement with Republic as to prices. . . . 1 — 57.
prices between constituent companies fixed by
president USSO. Ex. Com.,
July 2, 1901
control prices of subcompanies S — 102.
adj ustment of inventory prices for 1903 and 1904 . . CSCO . Dir. ,
Jan. 25, 1904.
Production —
products named (Gary) T. H., vol. 2, p. 1680.
was organized to operate at lowest cost through
being self-contained 4 — 208.
produced about 60 per cent at formation or 56
per cent in 1907 of total production S — 145.
production compared with independents 5 — 221-223.
would have power to limit production 3 — 102.
would have power to increase production ,i — 102.
production, if export business is deducted, will
be about 50 per cent of total production 5 — 224.
table of percentage of production put in evidence,
excluded the export trade 9 — 523.
imposed a condition upon the commissioner of
corporations that the cost sheets must be
returned and no copies of them were to be kept 9 — 490.
can mine coal at less price than its contract with
Pittsburgh Co 5—156.
can produce pig iron cheaper than rivals T. H,, vol. 2, (G.) p. 1687 .
possibly difference of more than $2 T. H., vol. 2, (G.) p 1689.
companies make 10,000,000 or 11,000,000 tons
pig iron a year (Gary) , T. H., p. 1680.
American Sheet & Tin Co. controlled about 65
or 70 per cent of sheet and tin plate output in
Topping's time 27—1268.
Acquired ASW., which controlled 75 or 85 per
cent of wire business, and later acqiiired Umon
Steel Co., which had wire business 1 — 28.
Profits. {See also "Profits.")—
Smith's report calculates earnings independently
9f the amount paid out for dividends 9 — 525.
UXITED STATES STEEL COEPOEATION. 4729
UNITED STATES STEEL CORPORATION— Contd.
Promts — Continued .
Profit of about 28 per cent, calculating an in-
crease in physical value from $700,000,000 to
$1,187,000,000; 5 per cent on $320,000,000
bonds; 7 per cent on five hundred-odd million
preferred, and 4 or 5 per cent on common stock.
Profits were 36 per cent: 1903, profit 31 per
cent; 1904, profit 25 per cent; 1905, profit 33
per cent; 1906, profit 34 per cent; 1907, profit
35 per cent; and assets increased from $1,325,-
267,583 in 1902 to $1,758,113,013 in December,
1907 T. H . , vol . 2, p . 1403.
true profit is $160,000,000 for 1907 before deduct-
ing bond sinking funds and depreciation,
etc., which could have gone into profits T. H., vol. 2, p. 1870-71.
is $15.50 a ton, as shown by Carnegie, by dividing
10,000,000 tons production into $160,000,000
earnings T. H., vol. 2, p. 1796, 1871
Gary says, is amount paid for interest on bonds,
amount paid for dividends on stock, amount
expended for new property, and amount car-
ried forward to employees T. H., vol. 2, p. 1745.
one-half profits came from Carnegie plants f4 — 1726.
in 1904 commenced business with $1,583,845,298,
and on Dec. 31, 1904, gross sales and earnings
$444,405,430, and cost only $353,627,315, show-
ing a balance of $90,778,115. In 1907 they
made $196,504,288 increase in sales with
$1,34,765,535 increased capital T. H., vol. 2, p. 1402-3.
Tennessee C. I. & R. R. Co. acquisition —
did not have any large plant in the South prior
to absorption of TCI 14^925.
TCI. would be an extension of their business.
Col. Payne suggested 14 — 934.
was the natural purchaser for TCI., and that was
the reason it was approached instead of any
other buyer 14—945.
was the only company that would want TCI.
(Schley) 16—1102.
USSC. paid a higher price for TCI. than it was
believed to be worth by Gary and others, and
Ledyard says that the stockholders of USSC.
fulfilled their duty, because they restored busi-
ness confidence and credit 14 — 967-8.
Gary did not explain how he came to take TCI.
stock at par, raising from 60 ./S— 1091-2.
TCI. stock was not worth more than 65, but
USSC. paid $35 per share more for it, or
$11,900,000 in $34,000,000 .4—191.
offered to take additional stock tor 15 days at
same price 4 —190.
I-edyard understood USSC. would not take less
than a majoiity of TCI. stock; and did not sup-
pose that a majority would be sold and the
minority left unprotected 14 — 953.
"it'was'natural to consider that when they took
it (TCI.) they wanted the control," says
Schley....... 16-1215.
* ( OU UJNi.XJiJJ SXAXJiS SXiSJiij UUKJr'UKAXIUJN .
UNITED STATES STEEL COKPOBATION— Contd.
Tennessee C. I. & R. R. Co. acquisition — Contd.
men were officers and directors of banks, and also
some of tfie members oE TCI. syndicate were
possibly with different banks, who fixed the
price of TCI. at par, when it was claimed the
banks were rejecting it as collateral 13 — 907-8.
resolution of finance committee does not sfate
what was decided upon as to TCI.: it provides
on Nov. 3 the whole matter be reported to
chairman with power S — 130-31.
second-mortgage bonds ercchanged fur TCI. stock. 4 — 169.
$30,000,000 second-mortgage bonds issued for
TCI., and .?4,654.000 second bonds bought in
market -^—180.
bonds exchanged for TCI. were treasury bonds,
except .^.5, 000,000, which were bought on the
market 20—1494-5.
second-mortgage bonds might have been l(.)aned
to Moore & Schley .4—170.
USSC. was to loan Schley $5,000,000 or $0,000,000
cash, taking TCI., or buy it at 90 5—131.
$6,000,000 loan to Moore & Schley by USSC and
.$3,000,000 guaranty fund were proposed in con-
sideration of the sale of TCI. going through. . . 14 — 951.
Ledyard says Gary is in error as to proposition by
him of $6,000,000 loan, and that there was no
suggestion of a loan from individuals, except
from I^edyard 14 — 952.
Ledyard said loan would not do 3 — 131.
$1,200,000 second-mortgage bonds loaned to
Schley for $2,000,000 TCI. stock, Oct. 23, 1909. 5—127.
contract to loan $1,200,000 to Moore & Schley . . /f— 181.
loan of $1,200,000 of bonds in exchange for TCI.
stock was dated Oct. 23, 1907, and final transfer
of TCI. Nov. 7, 1907 16—1092.
two weeks after the loan of $1,200,000 of bonds to
Moore & Schley for TCI. at 60, the USSC,
became the owner of a majority of TCI
USSC. loaned $1,200,000 entirely upon TCI. at
60 USSC. selected as security for the loan,
which was to become a sale if not paid at the
end of six months. The loan was made about
three months before the October settlement,
and when the exchange was made that stock
paf?sed as a sale. This stock, which had been
taken at 60, was finally exchanged at 119,407,
and it was taken in exchange for bonds at par. . 16 — 1090-91.
Saving Trust Co. of America depended on
whether USSC. took TCI. If they did that,
then the bankers, as their share, would put up
$15,000,000 to Lincoln Trust Co. and Trust Co.
of America ?0— 1485.
did not regard the TCI. property as valuable, but
had a little while before that loaned §1,200,000
on TCI. and USSC. was willing to lend an addi-
tional sum of $5,000,000 20—1487.
quotation from letter of Attorney General Bona-
parte that USSC. "were not subject to prosecu-
tion under the Sherman antitrust law " S — 142.
quotation from Attorney General's letter approv-
ing President's action .? — mtk
UNITED STATES STEEL CORPORATION. 4731
UNITED STATES STEEL CORPOBATION— Contd.
Tennessee C. I. & R. R. Co. acquisition— Contd.
Sixth annual report as to TCI 16 — 1164.
Cuban ore at one-tenth of the money spent for
TCI. would have secured USSC. a great deal
more ore 7 — 40I3.
Transpoetation. (.See Transportation.) —
mines its own ore and pays freight to railroad
that carries it 5 — 438.
19~U\Z.
can make a large profit out of other holders of ore
because of high rates 9 — 542.
Republic ships over its railroads from Mesaba. . . n — 1240.
has advantage over competitors, because larger,
better organized, has better equipment, and
has means of transjiortation S — 105.
charge about 1 cent a ton a mile l — 53.
which amounts to 80 cents a ton 1 — 53.
if they charged $1.80 there would be no recourse
if Interstate Commerce Commission permitted
it i— 53.
executive committee meeting to fix railroad rates
was to fix the rates to be published for a year for
ICC, and USSC. had right to make them any
figure ./9— 1396-99.
executive committee and Schwab, president, con-
ferred with presidents of railroads and probably
advised them that the Corporation was indiffer-
ent what rate was charged, because it was im-
possible to hurt the USSC. and it was a good
business proposition 19 — 1400.
RRS. Miles.
R&LE 233
CLS&ERR 282
D&IR 229
DMN 274
ELC&E 230
other lines 107
in all 1,355
and 298 miles of second tracks; 659 miles of sid-
ings owned by USSC T. H., vol. 2, p. 1760.
(name changed from USS. Steel Products Export Co.
in 1910.)
UNITED STATES STEEL PRODUCTS CO. {See
United States Steel Products Export Co.)
capital stock, 11,000,000 5—123.
Gary, director 5—123.
Farrell, director 5—123.
Farrell, president 5—227.
selling 5,000 tons export a day or 1,500,000 a year 5 — 225.
Pacific coast department "which will take charge of
the selling and distribution of the products and will
generally handle the business of the various manu-
facturing subsidiaries of the USSC . in the Pacific ter-
ritory" Gen. Man. Sal.,
Sept. 20, 1911.
warehouse business of USSC. on Pacific coast also con-
trolled by United States Steel Products Co Gen. Man. Sal.,
Sept. 20, 1911.
4732 UNITED STATES STEEL COKPOEATION.
UNITED STATES STEEL PRODUCTS CO.— Contd.
ronsolidation of USSC. business on Pacific coast under
direction of United States Steel Products Co Gen^. ^^^^^^^^- '
will sell products of American Bridge Co American
Sheet & Tinplate Co., American Steel & \\.ire Co
Carnei^ie Steel Co., Illinois Steel Co Loram Steel
Co., National Tube Co., Shelby Tube Co., and ^ ,^ „ , ,,.
TCi. on Pacific coast Gen Man Sal. Min.,
Sept. 20, 1911.
a>,'ents solicited export orders 8 — 420.
UNITED STATES STEEL PRODUCTS (EXPORT)
CO.—
power of attorney to enter imported goods and to exe-
cute bond for customs and to get drawback thereon. USSPECO. Dir.,
May 25, 1904.
UNIVERSAL CONSTRUCTION CO.—
operations ceased (majority of stock owned by Illinois
Steel Co.) 111. Steel Co. Dir.,
Dec. 29, 1896.
sold all assets to Illinois Steel Co 111. St. Co. Dir.,
Dec. 26, 1899.
assets, transferred to Illinois Steel Co. and paid a div-
idend of 100 per cent and Illinois Steel Co. received
$50,000 on account of its stock 111. St. Co. Dir.,
June 13, 1900.
UNIVERSAL PORTLAND CEMENT CO.—
in September, 1906, this company delivered its entire
capital stock, $1,000,000, to Illinois Steel Co. for ce-
ment properties; but in June, 1908, it leased from
said Illinois Steel Co. cement plants designated
plants No. 2, No. 3, and No. 4, for a rental of 80 per
cent of the net income of the company after paymg
taxes and expenses of operation, and after setting
aside $25,000 for the cement company; and it also
leased from the Carnegie Co. a cement plant for 20
per cent of the net income of the cement company
after paying $25,000 for the cement company's use.
(These rentals were changed to 60 per cent for the
Illinois Co. and 40 per cent for the Carnegie Co. in
June, 1910. It has not been seen what was re-
ceived by the cement company for the stock issue
of $1,000,000) Min. Un. Port. Com. Co.,
Sept., 1906-June, 1910.
agreement Illinois Steel Co. to lease plants Nos. 1 and
2, and convey plants 3 and 4 and buildings, equip-
ment, and trade marks for $1,000,000 issue of stock
of UPCCO III. St. Co. Dir.,
Sept. 28, 1910.
plants repurchased by Illinois Steel Co. and lease
canceled 111. St. Co. Dir.,
June 10, 1908.
lease to, of plants 2, 3, and 4 for 80 per cent of net in-
come and deducting expense and $25,000 from Illi-
nois Steel Co 111. St. Co. Dir.,
^ , ^ , June 10, 1908.
rental charged by Illinois Steel Co. reduced to 60 per
cent of net income 111. St. Co. Dir.,
. , , , ^ „ , June 8, 1910.
rental charge to C. S. Co. increased from 20 to 40 per
cent of net income UPCCO. Dir. Min.,
June 8, 1910.
UNITED STATES STEEL UOKi-OEATIOX. 4733
WABASH R, R.—
contract, see "Penn R. R." USSC. Fin. Com ,
Apr. 4, 1905.
WATERBTTRY CO.—
has files of correspondence with Jackson as supervisor
of Wire Rope Association lo — 572.
WAUEEGAN & MISSISSIPPI VALLEY RY.—
dividend $20 per share ASWCO. Dir ,
Dec. 9, 1901. '
$60,000 invested in capital stock of W. & M. \. Ry. by
ASWCO., all_ of which is held by ASWC, except
3 shares by directors, while assets of W. & M. V. Ry.
are only $22,000. $38,000 of stock to be returned
and capital stock to be reduced accordingly ASWC. Dir.,
Dec. 15, 1908.
WESTINGHOUSE MACHINE CO.—
$200,000 advanced to, by USSC. on contract U.S.S.C. Fin. Com.
Oct. 1, 1907.
WHARTON (WILLIAM) STEEL CO.—
plant could be procured and subject referred to Gary,
Frick, Corey, and Widener USSC. Fin. Com., Sup.
Ext.,
Apr. 27, 1904.
WINTHROP IRON CO.—
owned by CSCO CSCO.,
July 3, 1905.
sale of stock of Winthrop Iron Mining Co . and Chapin
Mining Co., owned by this company, to the Minne-
sota Iron Co., and the acceptance in payment
therefor of promissory notes of the Pittsbiorgh
Steamship Co., and the increase of capital stock of
Pittsburgh Steamship Co., and the purchase of said
increased capital stock by such notes, was re-
quested by Mr. Filbert, comptroller of the USSC.
The Pittsburgh Steamship Co. capital stock was
increased to $7,880,000, and the additional stock
issue of $6,550,000 was bought by the Carnegie
Steel Co. of New Jersey for $6,550,000 of promissory
notes of the Pittsburgh Steamship Co., aggregating
$6,550,000 CSCO. Du-.,
Oct. 25, 1909.
WOODWARD CO.—
makes only pig iron 1 — 20.
WORTH BROS. CO.—
had continually to call on the parties to the pool for
their percentage of orders 10 — 553.
feels effect of open market and has only 4 furnaces
operating out of 16 CSCO. Dir.,
Mar. 15, 1909.
YOTJGHIOGHENY NORTHERN RY. CO.—
26 per cent dividends or $104,000, 1901 HCFCCO. Dir.,
Jan. 16, 1902.
25 per cent dividends or $102,000 HCFCCO. Dir.,
Dec. 24, 1902.
4734 UNITED STATES STEEL. COEPORATION.
YOXINGSTOWN COKE CO.—
one-quarter interest bought, HCFCCO. owning three-
quarters already HCFCCO. Dir.,
May 9, 1895.
all assets bought for $185,000 by HCFCCO HCFCCO. Dir.,
May 11, 1895.
YOTJNGSTOWN IRON, SHEET & TTJBE CO.—
2,000 shares purchased from Frick for $211,196 prom-
issory notes, payable on or before five years after
date with 5 per cent interest by USSC USSC. Fin. Com.,
Feb. 17, 1903.
YOUNGSTOWN SHEET & TOOL CO.
and Inland Steel Co. and new steel plant in Cleve-
land, Ohio, are only new concerns of any impor-
tance organized since USSC IS — 867.
INDIVIDUALS.
ATTEEBURY—
vice president Pennsylvania R. R. and director 6 — 330.
ATTORNEY GENERAL BONAPARTE—
quotation from letter saying that USSC. "were not
subject to prosecution under Sherman antitrust
law" 5—142.
quotation from letter approving President Roose-
velt's action as to USSO 5—143.
BACON (DON)—
From Mesabi Range was in TCI 16 — 1224.
BACON (ROBERT)—
elected director Illinois Steel Co Ills. St. Co. Dir.,
Apr. 27, 189--
BAKER, GEORGE ¥.—
president First National Bank 14—956.
is Schley's brother-in-law 14 — 956.
First National Bank loaned Schley large amount and
did not object to TCI. But Mr. Baker, the presi-
dent, is Schley's brother-in-law 14 — 950 ,
did not have any connection with TCI 2S— 1224.
BERGER, MIRAM—
sued USSC. to enjoin bond conversion, injunction
granted reversed by Court of Errors and Appeals
June, 1902, opinion '2- 1592-1602.
BOILEAU, JOHN W.—
author of "The Coal Fields of Southwestern Penn-
sylvania" IS — 7S'i
BONNIWELL, EUGENE C—
produced trust or pooling agreement of Lukens Iron
Co. with 10 or 12 large steel concerns 10 — 550.
BOPE, H. P.—
attended pools meetings after formation of USSC. on
behalf of Carnegie Co - 2-'f— 1745.
BOYNTON, CHAS. H.—
letter to Thome stating that Times article emanated
from Perkins 25—1700.
was formerly of Hay & Boynton, Wall Street brokers . .
broker in New York who read Perkins's statement to
him at Lotus Club, to which Perkins made no dis-
sent, in reference to Trust Co. of America 31 — 1506.
Perkins says: "It was not in any such sense regarded
at that time," i. e., that Perkins had made any
statement except to help situation 21 — 1507.
4735
4736 UNITED STATES STEEL COBPOBATION.
BEIDGE, JAMES HOWARD—
Schwab met him 18 — 1361.
did not have access to books of company, but some
partners gave him information 18 — 1361.
CARNEGIE, ANDREW—
got $1,000,000 from Frick et al., option on CSCO. for
" $160,000,000 :?- 30.
got $320,000,000 for his property, which he has offered
for $160,000,000 and $1,000,000 besides J— 32.
received $304,000,000 of bonds i5— 1361.
owns more than half the company 18 — 1361.
owned 51 per cent stock of Carnegie Co., and other
stockholders owed him for stock 18 — 1361 .
plant was worth $119,000,000 when Frick got option at
$160,000,000 «4— 1724.
$76,000,000 valuation was figured by Carnegie to buy
out Frick; but to sell to Frick the valuation was
higher 2.^—1724.
suit with Frick in, CSCO. property valued at
$76,000,000 J— 33.
intended to build railroad (1899-1900) 7-30-32.
intended to build tube works at Ashtabula (1899-1900) i— 30.
demanded bonds for National Steel Co. from USSC. 1 — 32.
announcement that he would go into tubing business
and there was another consolidation T. H., vol. 2, p. 1644.
built raihoad for purpose of founding big tube mill at
Conneaut, which would have put out of business
the National Tube Co 2-^-1725.
his plan to build tube works referred to as new com-
petition trenching upon field of others Nat. Tube Co. Dir. Min.
Jan. 15, 1901.
would demoralize railroad and tube business, Mor-
gan's statement 1 — 43-44.
('arnegie built Pittsburgh Bessemer & L. E., 1900-
1902 ;— 45.
would cancel trade agreements 1 — 43.
cut price in rail pool 1887-1888 J^3-44.
Btory told by Gates as to pool 1 — 43-44.
competitors were willing to organize organization and
it did not originate with Carnegie Co. (Structural
Association) n — 1715.
had minority interest in Frick Co i — 66.
Carnegie built railroad (referred to in Morgan state-
ment) 1 — 44-45.
CLARKE, E. A. S —
president of Lackawanna Steel Co. said we are bound
to let others know of change in prices 5 — 274.
CLEMSON, D. M.—
was with steamship lines and national gas companies. . 5 — 294.
CONGER, FRANK—
guaranteed that indebtedness of Alabama Bridge &
Iron Co. does not exceed $8,036.70 ASWCO. Div.,
Jan. 17, 1901.
CONATERSE, E. C—
was not alarmed, while connected with Tube Co.. as
to projected Carnegie Tube Works
UNITED STATES STEEL CORPORATION. 4737
COBTELYOTT, G.. C—
asked to come to New York afternoon Oct. 22, 1907,
when run on Trust Co. of America began, partly
because of those withdrawals SI — 1500.
at bankers' conference at Manhattan Hotel, Oct. 22,
1907, Tuesday night Sl~-1502.
COTTON, J. P.—
invited to attend meeting finance committee USSC.
in reference to securing and locating railroad at
Duluth in view of reports of local officials USSC. Fin. Com.,
July 3, 1907.
$2,000 extra compensation for services in 1907 USSC. Fin. Com.,
Nov. 26, 1907.
DAVISON, H. P.—
did not state to Thorne that he regarded the Trust Co,
of America as the chief sore point, but was pleased
to see it was in such good shape gs — 1689.
DICKSON, WM. B.—
passing upon advertising matters Gen. Sal. Man. Min.,
Apr. 5, 1908;
May 19, 1908.
resigned as vice president USSC. Fin. Com.,
Apr. 25, 1911.
DINKEY, A. C—
Alva C. , elected president in place of Corey resigned . . CSCO . Dir. ,
Aug. 13, 1903.
DU PUY, HEBBERT—
president of Crucible Steel Co., spoke at Gary dinner,
Jan. 11, 1911, in favor of cooperation 5 — 278.
EDENBOBN, W.—
resigned USSC. Fin. Com.,
Nov. 30, 1909.
FELTON, E. C—
president Pennsylvania Steel Co., spoke at Gary din-
ner 5 — 271 .
FINDLEY, A. J.—
editor Iron Age at Gary dinner 5 — 275.
FBICK, H. C—
director USSC. and 6—315.
director Pennsylvania R. R 6 — 315.
was not director at formation of USSC 6 — 329.
paid 11,000,000 option on CSCO. for $160,000,000. . . . i— 30.
got option on Carnegie plant for about $160,000,000. . 2-^—1724.
in suit between him and Carnegie CSCO, property
valued at $76,000,000 in affidavit .?— 33,
suit affected practically the same property which was
conveyed to USSC ,ZS— 1361-2,
objected to prostitution of coke companies to steel
interests.. HCFCCO. Dir„
June 7, 1887,
claimed that the HCFCCO. should not be compelled
to sell coke at $1.35 to Carnegie Co. for the benefit
of those who held stock in the Carnegie Co HCFCCO. Dir.,
Sept. 27, 1899.
4738 UNITED STATES STEEL COEPOKATIOK.
FEICK, H. C— Continued.
objected to selling Carnegie Co. coke at .51.35 on
ground that it was less than one-half the value of
the coke, and the officers of the coke company were
using their positions to the advantage of the Car-
negie Co HCPCCO. Dir.,
Jan. 24, 1900.
resigned as president HCFCCO IICFCCO. Dir.,
June 30, 1897.
GARY, E. H.—
chairman board of directors, chairman finance committee, chief execu-
tive officer of corporation 2 — 01.
became chairman board of directors on Sept. 1, 1903 24 — 1720-1.
became chairman executive committee in 1901 24 — 1720.
director American Bridge Co 2 — (il,
director American Sheet & Tin Plate Co 2 — 62.
was previously president of Federal Steel Co 2 — 67 .
director of National Tube Co 2 — (J9.
director of Tennessee CI&RRCO 2—69.
director Union Steel Co 2 — 70.
director in Elgin, Joilet & Eastern RR. Co 5—113.
director in Duluth & Iron Range RR Co 5—113.
director in Duluth, Missabe & Nor. RR. Co 5 — 113.
director in United States Steel Products Oo 5 — 123.
is on the board of directors, or some of his a^.-iishmfs, of most, if not all,
of subcompanies 5—102.
companies (not affiliated with USSC.) in which he is direcior 24 — 17.57.
companies affiliated with USSC. in which he is director 24 — 17ri7.
is president of the American Iron & Steel Institute 2 — 72.
acted for Ills. Steel Co. and Federal Steel Co. with ASWCU.; was gen-
eral counsel for Ills. Co ASWOODir.
Feb. 20, 1900.
.^—200.
J. R. \ auUrmer told Kauffman that the president of the Illinois Steel
Co. said that Huston should have kept the Lukens pool agreement
personal to himself and should have had a typewriter do it, and that
he should have st.ayed with the tyijcwritor while he was doing it.
The agi-eement was dated and printed Nov. 9, 1900 10—()'>i.
Promises —
Gary promised to give committee anything given to Barsan of cor-
porations 6_357_5S,
promises to furnish information concerning all those subjects or any
subject 2—70.
promises list of export sales .- 5 — 101.
will furnish statement of ore leases and when they expire S — 108
promises to give title and put record of Whitney coal stock case in
record j^ — 1,5,',.
promises Pittsburgh Coal Co. lease or contract />—]. '").").
promises Pittsburgh Coal purchase contract 4—159.
promises to furnish figures showing amount taken ))v USSC. under
steam-coal contract and total output of Pittsburgh Coal Co .4—164.
Gary dinners, Gary offers to send speeches and proceedings at the. . 2—73.
Combinations and prices —
does not believe in unchangeable prices or what is more than reason-
able $ 77.
does not believe in unchangeable prices 5 — 77.
believes in stability in prices s— 78 .
does not believe in reducing pr' ^ ^
them in good times „ ^^^^, 7"
"UNITED STATES STEEL COEPOBATION. 4739
GARY, E. H.— Continued.
Combinations and prices — Continued.
believes in Government control and control of prices S — 79 .
believes in cooperation in place of competition 5 — 79.
Federal Government has power to fix prices .S-80.
does not believe in Government management of business 4 — 175.
wrote article for World in 1900 that Gary did not believe in monopoly
or restraint of trade. . ." 4 — 177 .
has never departed from idea of not securing monopoly or restrain-
ing trade 4 — 177
denies that immediate cause for bringing about TCI. deal was panic
condition 4 — 179,
Gary says combining all subcompanies under one operating com-
pany might be against Northern Securities decision S — 103.
said agreements were no longer necessary when agreements were
abrogated in December, 1904 24 — 1718.
dinner not equivalent to agreement, but intended men to maintain
prices and not to take business from each other indecently S — 279.
if prices were maintained by dinners and not by contract, the same
result is reached as is prohibited by Sherman law as to contract
(cf. Schwab, T. H., vol. 2, 1650-51, 1676; and Carnegie, id., p.
1794, 1841^2, 1849-50, 1820).
agrees with Littleton that a joint committee to amend Sherman law
should be appointed 5 — 289.
Littleton stated to Gary plan of uniform State corporation laws and
Federal license upon proven efficiency and character for engaging
in interstate commerce 23 — 1608-1610.
USSC—
statement Lefore Ways and Means Committee that USSC. could put
all competitors out of business because of ore and transportation. . 1 — 53
says Munsey's Magazine statement of value of USSC. properties
was right S — 90
says USSC. was fashioned after Federal Steel S — 67
USSC. controlled 60 per cent at organization and now 50 per cent. . 5 — 75
USSC. influence for cooperation has caused stability S — 80
says he did not say the Attorney General had given the USSC. a
clean bill of health S— 70
says Department of Commerce and LaVor has Veen examining books
six years 2 — 70
wants committee to tell USSC. what to do 5 — 288-9
Tennessee CIRRCO.—
Gary and Frick knew more of the loans of Moore & Schley outstand-
ing than Gary remembers now 4 — 167
offered to lend Moore & Schley $5,000,000 or ,'56,000,000, which was
not accepted 4 — 170
Gary 1: elieved TCI. syndicate were anxious to sell > 4 — 170
Gary's information about Moore & Schley was from Ledyard, although
Schley had his counsel, Thatcher 4 — 1 69
Gary had two men examine Moore & Schley's books, but forgets the
name of one 5 — 141
Gary was deceived as to amount of TCI. carried by Moore & Schley
in view of syndicate holdings 5 — 142
says Schley told Frick that the only way he could keep his firm from
bankruptcy was by selling TCI. stock S — 131
Gary did not believe statement that Schley could have pulled
through panic ^ 131
Gary said Thatcher would say assignment had been prepared for
Schley or Moore & Schley 5 — 131
failure and result thereof caused Gary to go to President -f— 169
— l'h lilrary and proposed going
ut TCI. purchase 5—129
4741) UNITED STATES STEJfiLi UUKruwAXiUJN .
GABY, E. H.— Continued.
Tennessee CIRRCO — Continued. .107
went to Washington with Frick Sunday night by special car S—lil
President referred to Moore & Schley as being about to fail -^—167
President knew failure was important ^ 1^7
Gary not sure he inquired or knew name of firm 4 167
no reason for not telling President name of business firm about to fail 4—165
Gary would not have voted to buy TCI. unless President approved. . 4—167
Root was called in ^ 138
and Frick just got to Executive Office in \^Tiite House at 9.30 Monday
morning when Perkins telephoned, and spoke to Perkins over
phone at 9.45 and said President was considering TCI. matter, and
at 9.55 Gary telephoned to Perkins that President felt that under
all circumstances he had no right to interfere, etc 25—1606
Payne offered to lend $1,000,000, others about $2,000,000, and USSC.
$5,000,000 or $6,000,000, makmg $8,000,000 or $9,000,000 S— 134.
second proposition was to take TCI. at 90, giving Moore & Schley
$25,000,000 5—134.
talked to Ledyard about purchase of TCI. stock at 90 which was not
accepted by Schley payable in bonds (3 — 132) 5—131-3.
third and final proposition to give Moore & Schley 100, amounting
to $30,000,000 5—134.
had said he would give only 65 for the TCI. stock 5—134.
but finally gave 100 for TCI., because Moore & Schlev might have
failed.... 5-136-137.
Gary agreed to raise the price for TCI. from 90 to 100 5—133.
did not explain to Schley how he came to take TCI. stock at par,
when he considered it worth only 60 16 — 1091-2.
could not use $75,000,000 cash in banks because of bad effect on
financial conditions 5 — 132.
letter to Root 5—138.
letter to Root from Gary 5 — 139.
letter from Root to President Roosevelt 5 — 139.
letter from President Roosevelt to Root 5 — 139.
statement of Roosevelt as to disposition of President and Depart-
ment of Justice 5 — 139.
letter of President Roosevelt to Attorney General 5 — 140-141.
President's letter to Attorney General 4 — 167-168 .
thinks the Attorney General is bound not to prosecute USSC. for
acquisition because it would be unfair 4 — 166 .
did not know whether $2,000,000 TCI. was syndicate stock and
thought it was Jloore & Schley's stock 4 — 183.
thought that Moore & Schley could not take $6,000,000 loan because
they were bound by syndicate 4 — -183.
did not find any resolution forced by Gates that would permit
minority holders to sell their stock 4 — 190.
Gates did not insist on 10 point increase 4 — 190.
took TCI., which he valued at 65, Vjecause they wanted to relieve
Moore & Schley 4—190-191.
although USSC. paid $11,900,000 for TCI. more than Gary considered
it worth at 65, he did not consider that a loss 4 — 192.
General —
says he is not familiar with whether the shipment of ore by rail to
lakes or by boat across lake are shipments over which Interstate
Commerce Commission would have jurisdiction 5 — 111.
desires knowledge of armor-plate contracts 5 — 82 .
says lUiQois & Lorain companies do not manufacture the same or
any of the same products 2 — 68.
refers to rail prices and costs... 92-3.
says Schwab's statement before
cost $12.50 after Federal Ste^ 98.
UNITED STATES STEEL CORPOEATION. 4741
GABY, E. H.— Continued.
General — Continued.
refers to export 3 — 93.
admits USSC. might have sold more export rails than domestic 3 — 100.
does not admit Austriana and Mexicans paid $4 less for rails than
domestic $28 S 100.
is on the board of directors, or some of his assistants, of most if not all
of subcompanies 3 — 102.
400,000 tons estimate of usable TCI . oc e corrected to read 400, 000, 000 . 9 — 487-8 .
Gary dinners —
first dinner held Nov. 20, 1907 7—373.
first dinner Nov. 20, 1907, and panic of 1907 began in October and
ran from about Nov. 1 until about Nov. 7 7 — 373.
dinners were held in 1908— Jan. 30, Apr. 2, and Dec. 10. . 7—376; 24—1773.
S.4— 1773.
Gary dinner January, 1911, speeches 24 — 1775-1798;
2^—1798.
dinner May 4, 1911 ;?4— 1798.
Gary dinners began during panic of 1907, or just following 5 — 262.
began December, 1908 (first dinner after panic) 5 — 269.
dinners given between 1900 and 1907 had no connection with Gary
dinners 5 — 262.
at one dinner prices were discussed; and referred to at another
statement 5—273; 11— mi-2.
general press not admitted to Gary dinners, only trade papers 2 — 70.
press not admitted to Gary dinners 3 — 75.
trade papers three, only admitted to Gary dinners S — 75.
says Iron Age, Iron Trade Review, and Manufacturers Record are
three important trade papers 2 — 70.
Gary dinners, purpose of calling S — 77.
genesis of dinners as explained by Gary, in brief was that USSC.
controlled 50 per cent of domestic steel business, and had a
right to prevent reductions in prices by agreement express or
implied or to maintain prices "Notwithstanding we were receiv-
ing letters daily from the jobbers all over the country begging
us, if possible, to prevent demoralization, and to prevent de-
crease in prices, etc.;" on the other hand, they "had no moral
or legal right to become involved in a bitter and destructive
competition "for the reason that if we should go into a competi-
tion of that kind it meant a war of the survival of the fittest; it
meant that a large percentage, as in old times, of the people
engaged in the manufacture of steel, would be forced into bank-
ruptcy for many reasons — their facilities for manufacture "were
not so good, their cost of production was high, their equipment,
their organization, their decreased ownership of some of the raw
products and other things of that kind which enter into the cost
of production would place them at a disadvantage, and there-
fore it was believed, by me, at least, that it was not for the best
interests of the manufacturers generally or for their customers,
who desired stability as opposed to demoralization and wide
fluctuations, or for the employees of the various corporations
throughout the country who desired, so far as possible steady
work— continuous work at the best prices * * *. I invited
a large percentage of the steel interests of the country to meet
me at dinner and then presented these views to them * * *.
Then I said * * * the only way we could lawfully prevent
such demoralization and maintain a reasonable steadiness in
business, whether we lowered the prices from time to time or
not * * * was for the steel people to come together occa-
sionally and to tell one to the others exactly what his business
-rrrn,, T„ „<■!,„.. „„^A „ V. J-innl^n,,,^ \,y B&C]l OUO tO all OthOrS Of
his particular business " S — 76-77.
4742 UNITED STATES STEEL. COKPOKATION.
GABY, E. H. — Continued.
Gary dinners — Continued.
and in his testimony in the tariff hearings (Dec. 18, 1908) Gary
said that if most of their competitors were out of business follow-
ing reductions in the tariff, that "I think it would be the worst
thing that could happen to United States Steel, because the
people would not stand it" T. H., vol. 2, p. 1706.
dinners originated because nothing was to be gained by "this fierce
competition" 7 — 372;
7—373.
at diimers, there is no understood agreement. It ia the general
broad principle that if a certain price is felt to be fair and a right
price, each one for himself feels that he ought to maintain l£at
Erice and not vary from it to the detriment of his fellows without
e should let them know, but without any agreement, express
or implied, to that effect 11 — 693.
dinners were to prevent demoralization of steel market S — 76-7.
dinners were for exchange of information as to circumstances of each
concern's business S — 77.
purpose of dinners to preserve and benefit steel business '. . 5 — 264.
at dinners prices were not fixed 5 — 264.
at dinners advised mills running at less capacity rather than com-
peting 5—265.
Gary dinners not aimed to prevent reduction of prices (but see p.
266, middle) 5—267.
dinners Parrell, president USSC.j said policy of corporation to coop-
erate with its competitors to mamtain fair prices 5—269.
does not believe in unchangeable prices 5 — 269.
dinner Jan. 11, 1911, reported complete 5 — 270.
intention has been to maintain reasonable prices 5 — 281.
Gary says no effort to control or regulate or agree upon prices at
Gary dinners 2 — 73.
dinner Jan. 11, 1911, there was 95 per cent of steel industry 5 — 263.
Dinners — Republic Co. dlsaffbcted —
Topping did not attend luncheon given after Republic Co. cut
prices i7— 1266.
dinners were for interchange of opinions on matter that would be of
mutual advantage, and for good fellowship and better acquaint-
anceship, and to consider prices not in a specific sense but in a
general sense (Topping) 17 — 1267.
Topping, of Republic Co., told Gary before they cut prices 17 — 1271.
Topping did not consider that anybody at meetings felt they were
in honor bound to do anything more than to take care of their
business as their own judgment suggested it should be cared for;
but Republic Co. had cut prices on May 24, before luncheon which
he did not attend n — 1266-67.
May 4, 1911, dinner followed cutting of prices by Republic Co., and
Huston says he presumed that the cutting of prices was the occa-
sion for the luncheon or dinner of May 4, 1911 11 — 690.
Gary dinners— speakers referred to the need of maintaining prices . 11 — 688-89.
price contained in statement issued by Gary after luncheon May 4,
1911, in a general way conformed to 11 — 691-92.
dinner aimed to prevent competition 5 — 271.
luncheon about 10 days before and no one from Republic I. & S.
Co. was present 5 — 271.
Gates must believe in open competition .5—271.
Gary's statement in re refusal of Republic I. & S. Co. to cooperate
and in cutting prices 5 — 272.
statement against price cutting and for continuatinTi of cnor)pmtinTi r — 9'19.
Gary denies speaking of maintain 74.
UNITED STATES STEEL OOEPOEATION. 4743
GARY, E. H.— Continued.
Dinners — Eeptjblic Co. disaffected — Continued.
dinner speeches at London, Sept. 11, 1908, Iron & Steel Institute,
Great Britain 24 — 1771.
foreign agreement not admitted by Gary g — 70.
Dinners, effect of —
dinner not equivalent to agreement but intended to influence men to
maintain prices and not take business from each other indecently . . 5 — 279.
if prices were maiutained by diuners and not by contract, the same
result is reached as is prohibited by Sherman law as to contract. . . 5 — 280.
Gary dinners were not more binding than contract, he says 5—265.
Gary dinners better than contract 5 — 265.
dinners allowed exchange of prices and information as to prices and
purpose to maintain at certain point and each acting on other's
information kept prices approximately the same 18 — 1297 .
Gary did not deny statement attributed to Carnegie that Judge
Gary knows that the meetings were to maintain prices, etc. (Wash-
ington Post) 5—281.
Testimony reads as follows —
"I am very sure the committee is aware of the fact that it has been
ar^ effort of the U. S. Steel Corporation always to prevent an
unreasonable or sudden increase of price of its commodities " S — 78.
"I realize as fully, I think, as this committee that it is very impor-
tant to consider how the people shall be protected against impo-
sition or oppression as the possible result of great aggregations of
capital, whether in the possession of corporations or individuals.
I believe that is a very important question, and personally I
believe that the Sherman Act does not meet and will never fully
prevent that" 3 — 79.
"It is the small company, disposed to cut prices, which makes the
market, because when two small companies begin to cut, then,
of course, the others must reduce their price or there would be
complaint on the part of their customers. It is a great mistake
to suppose that we can dominate the market price — a great mis-
take; but it is not a mistake to say that our influence in the way
I have suggested — by cooperation — spoken of by Mr. Littleton,
has had a very great result in securing reasonable stability in
business and preventing demoralization " 3 — 80.
"I will not intentionally be put in a position where anyone has
the right to say that I intend to violate any law or to oppose the
best interests of the public. I intend to say that modestly, but
those are my views and those are the views of the members of
the finance committee and the controlling body of the U. S. Steel
Corporation " S — 81.
"We have met and laid our business on the table, so to ^leak,
telling one another frankly and freely just what we are cioing,
and while that has not maintained prices — that has not pre-
vented a good deal of cutting by different ones at different places
and times — while it has not controlled the business in any sense
of the word, yet it has had a very steadying influence and has
prevented the destructive competition to which I have adverted. 4 — 195.
"That partly accounts for the fact that the prices of steel rails have
not changed, I think " 4 — 196.
"They have been given at such times as suits my convenience and
disposition, and public announcement has been made in each
instance and what took place at the dinners " 5 — 262.
* * * * *
"Representatives of different organizations interested in these
general lines of industry attended those dinners. A large per-
centage were present; at some times very much larger thaii_ at
other times. Of course, these are not entirely perfect, assuming
■ ■• . i-.j ii ;_i,j. j,„ „„!,„ tjigm perfect and would like to
4744 UNITED STATES STEEL, COEPOBATION.
GARY, E. H.— Continued.
Testimony reads as follows — Continued.
do it, because there is always a certain percentage of people who
will not come into conferences of any kind; and those gentlemen
like very much to have others hold up the umbrella for them to
stand under " 5—263.
* * * * *
"At one of these dinners 95 per cen t of all the steel and iron industry
of the United States was represented. That was the dinner that
was held Jan. 11, 1911 5—263.
"Prices were not attempted to be fixed, were not fixed, could not be
fixed, and there was no possible way of fixing them or maintaining
them, unless you have some way of having them fixed under Gov-
ernment control, or you are allowed to do it by positive agreements.
It never has been possible. It never could be possible. We have
never succeeded in doing so. But we have, by this friendly inter-
course, prevented demoralization — sudden, wild, extreme fluc-
tuations— destructive competition that would drive large numbers
of them entirely out of business, and that would be ruinous to the
customers of the steel people who had large stocks of goods on hand
from time to time, and which would spread to other lines of
industry. " 5—264.
Page 6, about the middle of the page, of dinner of jan. 11, 1911 —
"At this particular time there is not in this country a demand for
more than 50 per cent of the total producing capacity in our lines.
It is obvious from this statement of fact that there is not enough
business to go around and that there is no possible way of protect-
ing one another and thereby protecting oneself except to submit
ourselves to the conditions as they exist and to take and be satis-
fied with our fair proportion of the business which is offered.
[Applause.]"
"That meant to say that any fair-minded man, knowing there was
only 50 per cent business as compared with the capacity, would
believe it to be for his own interest to be satisfied with his mills
running at one-half their total capacity, as otherwise he would be
necessarily involved in a competition that meant the sur\aval of
the fittest, every one struggling to get more than 50 per cent of
capacity, and bringing about demoralization and ruin." 5 — 265.
"At that time some were running, as usual, about 40 per cent, and
some were running about 60 per cent; and it has been that way all
the time, more or less. There is no possible way of controlling.
Of course, that is my advice. I wish everyone would recognize
the fact that that is what he ou^ht to do, but he is not willing to
do that. He is under no obligation to do that. And you will see,
as I go on, that I state clearly under no circumstances would I bind
myself to do or not to do anything; that everyone must be left
free to do as he pleases. That I understand to have been the
position of the Attorney General in his argument before the
Supreme Court of the United States, that the law does not compel
people to compete. If everyone leaves himself free to compete,
then he is living up to the requirements of the law. At the same
time, I would not hesitate to advise my associates to be satisfied
with their fair share of business. That advice has been followed
to some extent. But, as no one was bound in any way, never had
to do it, they did not live up to the principle. That is the
trouble." 5--266.
Me. Beall read from page 27 of the record of dinner of Mat 4,
1911, as follows —
"You know I do not say that for the purpose of deceiving you at all
nor for any purpose except to let you know exactly what I am
doing. And, therefore, as I have said before, gentlemen, we come
together upon a platform that involves the honor of a man, which
is far better and far higher and far more binding upon us than any
contract which we could mak~ "
UNITED STATES STEEL COBPOEATION. 4745
GAEY, E. H.— Continued.
Me. Bball bead prom page 27, etc. — Continued.
Mr. Gary. Yes. Now, I would think, if I should meet you, a com-
petitor of mine, on the street, and ask you what prices you are
charging and to what extent you are running your imlls, and I
should tell you what I was doing, both of us being perfectly frank
and neighborly, and then I should leave you and go to one of your
customers and offer to sell him goods at a less price than you told
me you were selling at, that would be most dishonorable conduct
on my part, and that I would have a reason to expect, as honorable
men, you and I having told one another what we were doing, that
we would not go and do something to the contrary of that to the
prejudice of either one, without telling him so frankly. That is
what I meant and thatiswhatlhaveexplainedfrom time to time." 5 — 266.
Mr. Beall read prom page 7 op speech at dinner op Jan. 11, 1911, as
POLLOWS —
"I say in this presence to men who know by long experience — men
who know to a demonstration that what I speak is true and logical —
that we have something better to guide and control us in our busi-
ness methods than a contract which depends upon written or verbal
promises with a penalty attached."
Now, if you made that sort of a contract, you would violate the Sher-
man antitrust law, would you not?
Mr. Gary. Yes; we would; but we have something better.
Mr. Bball. You have something that is letter even than a promise
in writing, with a penalty attached?
Mr. Gary. I do not say that it is more binding than a contract. That
is quite a different thing.
Mr. Bball. Something better to guide you. You say, 'We have
something better to guide and control us in our business methods
than a contract * * *.'
"Than a contract which depends upon written or verbal promises
with a penalty attached. We, as men, as gentlemen, as friends,
as neighbors, having teen in close communication and contact
during the last few years, have reached a point where we entertain
for one another respect and affectionate regard. We have reached
a position so high in our lines of activity that we are bound to pro-
tect one another."
Judge, in all these dinners, in all these speeches made at this banq^uet
on Jan. 11, 1911, does not the thought run through there that with-
out entering into any written obligation or contract, or making any
agreement that would put the hand of the Sherman law on you,
you were in honor bound to observe
Mr. Gary. To do what?
Mr. Bball. To cooperate.
Mr. Gary. Well.
Mr. Bball. In such a way as to protect each other against any reduc-
tion in prices?
Mr. Gary. Not at all. It does not mean that at all; _ not at all;
because we had no fixed prices. We have never said that our
prices would be a certain thing, and they have not. Our prices
have fluctuated all the time. There has never been the time that
our prices remained the same, or have been all alike; never, not
for a single day, so far as I know. We have attempted in this way—
I have attempted, I will say, and others have attempted by this
influence— to prevent this utter demoralization which results from
a disposition on the part of everyone to go and get all the business
he can, and at any price he can, regardless of whether it is below
cost or not, whether it would destroy his neighbor and drive him
out of business; a disposition to let one another know what we are
doing with a view of trying to persuade everyone to keep the price
up to what he thought ought to be reasonable and fair. Is it
against any law for me to go to you, a competitor in business, and
say to you, "Your prices, I think, ought to be higher than they
are." or "ought to be lower than they are? " If you leave yourself
^ — "• if I do, we do not violate the
We have never said, never inti-
and BO, and each one of us should
4746 UNITED STATES STEEI. COEPOEATION.
GAET, E. H.— Continued.
Me. Beall bead prom page 7, etc. — Continued.
Mr. Beall. Have you not impressed on them time after time that
it would l:e the grossest breach of honor for them to cut their prices
below a competitor?
Mr. Gary. No; I have not; never a word. You will never find such
a suggestion as that.
Mr. Beall. I read from j)age 7 again:
"We have reached a position so high in our lines of acti'vdty that we
are bound to protect one another; and when a man reaches a posi-
tion where his honor is at stake, where even more than life itself
is concerned, where he can not act or fail to act except with a dis-
tinct and clear understanding that his honor is involved, then he
has reached a position that is more binding on him than any writ-
ten or verbal contract." [Applause.]
Why were you seeking so strenuously to impress upon them that their
honor was involved in some kind of way?
Mr. Gary. So that we, coming together, disclosing our biisiness,
telling one another about to what extent we are running our mills,
about how our business was going generally, what our customers
were, what our difficulties were, having made those full disclo-
sures, so that every one would reach the decision, if possible, that
he ought not to do a mean thing in the trade, in competition; in
other words, so that competition should be honorable, decent, and
reasonable, as opposed to bitter, hostile, destructive competition
such as Used to exist.
Mr. Beall. Did you not think that the meanest thing that any of
them could do would be to reduce prices?
Air. Gary. I should think, Mr. Beall, if you had a client and I had
a client, consulting you and me both professionally, going to you
and asking you what you would charge him, and you told him
$100, and then you should come to me and say, "That gentleman,
my old client, has been in my office and asked me liow much I
would charge him, and I told him $100" — I having gotten that
information from you, I should think if I should say to him when
he came to my office, he believing I was as competent as ,\ou, that
I would do it for $90, that would be dishonorable; that is what I
think about it, most certainly, unless I went to you and said:
"Now, you told me you said you would do this for $100, and I
want to do it for less than that, and I will charge him only $90."
Mr. LiNDABURY. I want to call attention to the fact that this was
simply a strenuous endeavor to establish the golden rule, and that
it ought to be encouraged.
Mr. Beall. The steel rule.
Mr. LiNDABURY. No; the golden rule.
Mr. Beall. A resort of moral suasion. I quote again from page 9:
■ ' Why do I mention these things? From the abundance of the heart
the mouth speaketh. These thoughts in my mind, in my heart,
force expression. I deal in frankness. Why is it? Why are these
thoughts in my mind? Why do they crowd into words? Because
at this particular time I am anxious that no man around this table,
no one connected with this business shall for a single moment
forget the high moral obligation he is under toward his neighbor "
"Mr. LiNDABURY. That is right.
"Mr. Beall_ (continuing reading):
"Because if it was the last word I would have the privilege of saying
t» you, I would say, with all my might and with all the emphasis
that I could find words to express, I consider it of the highest
importance at this particular time that everyone of us should have
a keen and abiding sense of the personal obligation which he has
toward all others and to make no mistake of running the risk of
trespassing within the domain of the rights of his neighbor, who
has given his confidence and trust, and who is willing at all times
to put within the knowledge and therefore more or less under the
charge and control of others the verv direction of his affairs "
Mr. Gary. Do you not think tl^^^^^^B^^^^^?^^
business men?
■UNITED STATES STEEL OOKPOKATION. 4747
GARY,[E. H— Continued.
Mr. Beall read prom page 7, etc. — Continued.
Mr. Bball. I hope so.
Mr. Gary. They say there is honor even among thieves.
Mr. Beall. I hope there is.
Mr. Gary. Well, that is as far as I have intended to go — as far as I
have gone 5_266-8
Page 14 of speeches at dinner of Jan. 11, 1911, reads as follows:
"I understand the policy of the corporation to be to cooperate with
its competitors in the effort to maintain fair prices" —
Mr. Gary. Well, that means —
Mr. Beall (continuing):
"And the stability of business conditions, by every means permis-
sible under the laws of the country and not antagonistic to the
public conscience."
That gives you the full quotation.
Mr. Gary. Yes. That means in the way I have stated, and no
other way. The answer to ^our inquiry is found in the fact that
prices have not been maintained. You will find in some of those
speeches a statement by me, perhaps repeatedly, that I have never
stood for unchanged or unchangeable prices; that that is not my
position. And there have not been unchanged prices. They have
been more or less changed all the time. That is not the point.
The point is to try and prevent the kind of bitter, destructive,
unfair, and unreasonable competition that demoralizes business
and drives to destruction many of the operators, of the manufac-
turers and their customers 5 — 269.
Page 21 of speeches at dinner of Jan. 11, 1911, reads as follows:
Willis L. King said, "I think, therefore, to talk of reducing the
prices ought not to be considered for a moment. As Judge Gary
has very properly said, it would not result in good to anyone. It
would not result in more business to us, it would not do the public
any good ; therefore I hope it will be the consensus of opinion here
to-night that we will maintain the present prices, which are fair
and reasonable, and await with patience the inevitable result,
which will* of course, be better business, and I think in the very
near future" 5 — 269.
Again testifies as follows —
Mr. Beall. Was not the dominant thought running through all these
speeches of these gentlemen who were there that it should be the
consensus of opinion among them that there should be no lowering
of prices?
Mr. Gary. The speeches speak for themseh'es.
Mr. Beall. You have read them. What is your opinion?
Mr. Gary. I do not think that is a fair, just opinion of the speeches.
Mr. Beall. That is the very reason I wanted you to express your
opinion, because I did not want to express mine, because it might
not be fair.
Mr. Gary. I do not think so, although I feel certain that it was the
wish and the hope of everyone that prices would not be reduced.
Now, it would be very strange if in the speeches made by these
gentlemen, with no opportunity to prepare, and with that hope
and wish in their minds, they would use expressions which you
would think meant that it was intended to maintain prices. But
you will not find in any of the meetings any agreement of the kind.
I have not attempted here to disguise the fact, Mr. Beall, that
the object of these meetings was to get between the extremes of
the restraint-of-trade clause and the monopoly clause and in this
way to prevent, so far as we could legitimately, a demoralization
of business and destructive competition; but there is nothing in
any of these speeches to indicate that there was any agreement,
express or implied, to do or not to do a thing, any suggestion that
each one was bound to maintain certain prices, or to fix certain
prices, or anvthing of the sort. The contrary of that was the
-' _=y_^^;.^^^l^^^a^H^a^^his is a good thing to do, as to
-==^^^^, as to whether or not you gen-
4748 UNITED STATES STEEL COEPOKATION.
GABY, E. H.— Continued.
Again testifies as follows — Continued.
tlemen believe that it is better to enter into a destructive com-
petition of the old kind than to try and maintain the equilibrium
of business by this kind of cooperation, is for you to say. I am very
sure if you want to take the responsibility as legislators and as law-
yers and judges, if you want to take the responsibility or if the
Government or anybody else in authority wishes to take the
responsibility of saying it is better to enter into a destructive com-
petition, and for the steel people to have nothing whatever to do
with one another, not even give one another information of any
sort or description, letting the business take care of itself and allow-
ing the strongest to survi^-e and the weakest to go down and the
general demoralization which would naturally result in business,
generally, to follow, then we have nothing to say; we would not
oppose it for one moment; not a moment. We have done what we
have considered best to be done for the interests of all concerned,
and within the lines of the law as we understand it.
Mr. Beall. As I understand it, Judge, you are frank enough to say
that through the medium of these dinners you have sought to ac-
complish the same result that would be accomplished by making
agreements among yourselves that would be unlawful, to a greater
or less degree?
Mr. Gary. I have not said that, but I have said that we have, so far
as we could, attempted to prevent demoralization and destruc-
tive competition. We h&ve not been successful, but we have been
successful to a large extent 5 — 270.
"There is quite a difference in one man going to another and saying
to him, 'My prices are so and so;' and then going out and selling
at a lower price, and on another occasion going to his neighbor
and saying, 'My prices are so and so, and I think they are too
high, and I can not maintain them on account of the competition
I have and I am going to cut them to suit myself.' Then it is not
dishonorable for him to do what he pleases. But I do not think it
is fair or honorable for business competitors to represent to one
another that thej' are doing certain things which are entirely con-
trary to the facts; and there is nothing like publicity among
decent men — that is, the disclosure from one to another of exactly
what they are doing — to secure a reasonable maintenance of
prices. Of course, circumstances arising day by day may
change circumstances; but in the main the prices are pretty well
maintained " .; — 272.
Mr. Beall. Would a rise in prices have affected or altered the spirit
of cooperation?
Mr. Gary. Well, I would hope that neither a rise nor a fall would
prevent cooperation. But, you see, at this last luncheon referred
to, notwithstanding the Republic had decreased their prices mate-
rially, and therefore it would seem to anyone necessary to decrease
their prices, yet I still hope for the cooperation of the steel people —
that is, the rest of us coming together and dealing with one
another frankly and telling them about our business and what we
were doing.
"While I think it is well to coach salesmen, we must put into them the
very spirit I think we all have here, that we are in honor bound not
to change our prices without letting the other man know it, because
then the salesman knows that he has an answer to give to that
proposition."
Mr. Gary. Is not that fair? It the price list of any company is pub-
lished, and it is well understood that it is charging certain prices
for certain commodities, is it not perfectly fair for him, when he
proposes to change those prices, or when he does, not when he pro-
poses, perhaps, but when he does change those prices, is it not
perfectly fair, if he is meeting the others from time to time, to say to
them: "My prices are changed. I have sent out a different price
Kst," so that everybody shall bavetbfi_anTnp (iTinr.rfiini+-ir9 TUm- io
the only way, you see, that ab«
people can be brought about.
UNITED STATES STEEL COEPOEATION. 4749
GARY, E. H.— Continued.
AaAiN TESTIFIES AS i-OLLOws — Continued.
Mr. Bball. Is it expected, among the gentlemen who attend these
dinners, that before they put into effect any change of price upon
any of their commodities, they are in honor bound to advise all of
their competitors of that intention?
Mr. Gary. I would not say it is; no. At the same time I would
think, on the part of one of our companies, if it had a price list
advertised, that is, it decided to change its prices, it would be only
fair to publish the change immediately or to tell other competitors
what he had done rather than to leave his price list, as published,
uncontradicted, and then quietly go to work and undersell or tell
below that price list, and m that way attempt to get away the
business which would naturally go to his competitor. That is what
this means 5 — 274.
Mr. a. F. Huston, president oj the Lukens Iron & Steel Co., said,
ALONG toward THE TOP OF PAGE 38, AS FOLLOWS:
"We are all of the same opinion about the maintenance of prices. I
heard the remark made by a prominent steel man last month. He
said he had never seen a genuine buying movement without first
a decided drop in prices to stimulate it. I have been thinking of
that a good deal since . He probably never saw anything else in the
past. I do not remember at any time when a genuine buying
movement started when there was not a drop in the price, before
we stood together."
Mr. Beall. It struck me that that was a significant expression.
"There always was a wild scramble for business whenever conditions
got as they are to-day."
Mr. Gary. Of course he meant to say that all of his people were in
favor of maintaining prices, and he meant to say that the steel
people should continue to cooperate. I could not put any other
meaning on it. I have no doubt that is what he meant to say 5 — 277
Mr. I. A. Kelly, the President of the Ashland Steel Co., of Ash-
land, Ky., at the TOP OF page 46 says —
"I heartily cooperate in everything that has been said here to-night,
and so far as our company is concerned we are ready and willing to
still cooperate to do what we can to maintain prices." [Ap-
plause.]
Mr. Bball. Do you not think that running through all these speeches
that were made at the banquet the idea was to bring about such
a condition, without going into any iron-clad agreement, to bring
about a condition where no man who attended would feel in
honor that he could take any action tending to the lowering of
prices in steel products? Do you not think that is just as effec-
tive as an agreement signed and sealed by all those who attended
the dinner? .
Mr. Gary. * * * These meetings were calculated to influence
people to maintain their prices. There is no doubt of that, but as
I understand the vice of the law is in obligating people to maintam
prices, in preventing absolute freedom on the part of each one
to do as he pleases. I think the vice in conduct which is unlaw-
ful is found in the release of one's freedom to do exactly as he
pleases. It was intended to influence people so far as we legiti-
mately could to maintain fair prices, each one for himself using
his best judgment, after full knowledge of the business of all.
You will see where I have said at different times exactly what I
had in mind what we would do and what we would not do. That
was the cardinal doctrine.
Mr. Littleton. Did I understand you to say that you considered
that the Sherman antitrust law did not mean a contract or agree-
ment unless it was one that was enforcible by either party?
Mr. Gary. No; I would not say that. No; I think an agreement to
maintain prices even though you could not enforce it would be
contrary to the Sherman antitrust law; but I think that if two or
^1 f ,,„ e,i^^„i/i o/^mo tr,rrotTior and say: "We will tell you what
ot agree, but we will not change
4750 UNITED STATES STEEL COKPOEATION.
GABY, E. H.— Continued. A=,hl^nd SteelCo, etc.— Con.
Mr. I. A. Kelly, THE Presidents. THE AsHXANDb^.^ ^^^ ^^^ ^^_
it, and if we change ^.e ^' ^"JJ'^Vto do as we please is m any
selves in a position wb^Jl°^, i ^^-^^ ^ have fair prices maintained,
respect abridged, but we wou concerned, ourselves and
We think It IS f°f,t^f^,^„^^*eTs to maintain fair prices and to prevent
reTort^otSS^thetrX calculated to unfak^^^^^^
«ln — an antitrust law. inat nas oeeii my iuea. x wiu ue very
alaH^to have the opinion of Mr. Littleton or Judge Bartlett or any-
one else on that subject. Certainly, if I thought it was wrong or
that we were doing anything wrong, I would not continue it for
one moment.
Mr Littleton. Suppose, Judge Gary, that we agree that the Sher-
man antitrust law would forbid an agreement to maintain prices,
if you had entered into one at one of these dinners. I think that
could not he disputed?
Mr. Gary. No, sir.
Mr. Littleton. Now, suppose, _ Judge Gary, you came together
and by foreclosure of the situation each to the other by this mutual
and well-intentional cooperation of which you speak the same
result is accomplished, to wit, the maintenance of prices, the
object which the Sherman antitrust law sought to prohibit has
been accomplished, has it not?
Mr. Gaby. No, sir; I do not think it has.
Mr. Littleton. You think that the Sherman antitrust law was
directed at the agreement rather than the result of the agreement?
Mr. Gary. I think so; I do, really. Take the case of two black-
smiths, for instance, and they come down the sidewalk together
in a village town every day; one lives on one side of the street and
the other on the other side, and one says to the other: "What are
you charging for shoeing horses? I am charging a certain price."
The other says: "Well, I am charging that same price," and that
is all that takes place^ and the result is that they maintain those
prices. I do not believe that that would lea violation of the
Sherman antitrust law. It does not seem to me that it is intended
to prevent that. The result is just the same aa though they had
agreed.
Mr. Littleton. But would not that be because there was no agree-
ment, either express or implied, loetween them?
Mr. Gary. Perhaps it would.
Mr. Lin'LETON. If, bjr foreclosure of the situation of each to the
other, and if by this mutual and, I will say, well-intentioned
cooperation and meeting together, and if, by the experience of
conference, each understanding the other, it might not come to
a common point with a common purpose, each — obligated b^ his
natural sense of honor— should feel obliged to maintain prices,
does not that bring about the same result as if there were an
agreement.
Mr. Gary. No; it does not bring about the same result.
Mr. Littleton. So far as the effect on the trade is concerned?
Mr. Gary. No; it does not, by a good deal.
Mr. Littleton. Perhaps I did not add one condition: Suppose they
did; then it does accomplish the same purpose?
Mr. Gary. Of course, if you and I, knowing exactly what the other
18 doing from time to time, continue to do that same thing, then
the result is the same as if you and I agree to do that 5—279.
"The intention has been and the effect has been to maintain reason-
able prices more or less all the time on the part of those connected
witn it. I have hoped that it would be very extensive, and at
fiC tw^^ ^f""^ thought it was, but the results have not been
a Xaltv Zh i ^""""Z 'i^1° '^ *^^''« ^^ J^een an agreement with
a penalty such as used to l,e made before I cameinto the b„m,i«ss
■ " ' 281.
UNITED STATES STEEL CORPORATION. 4751
GARY, E. H.— Continued.
Remarks made by Me. E. H. Gary at a dinner given him in Lon-
don, England, by the governors of the Iron and Steel Insti-
tute OP Great Britain, Sept. 1], 1908 —
Mr. Gary said, in part:
*****
"At the first meeting, after each one present had expressed his
opinion that the_ conditions and dangers were as I have previously
stated, the doctrine of conciliation and cooperation was suggested. "
*****
"The suggestions which were made and finally adopted were sim-
ple: It was proposed to appoint a general committee of seven,
with power to appoint subcommittees connected with special lines.
To the subcommittees anyone interested in a particular line might
apply for information and advice. And to the general committee
the respective chairmen of subcommittees or any individual might
apply for information and advice. Without going into detail, it
suffices to say these committees kept fully informed in regard to
the affairs of all, and freely advised individuals with respect to
conditions generally or in detail. While they were given no power,
their advice was usually followed.
"No agreement to maintain prices, restrict output, or divide territory,
or any other agreement, was made. Without going further into
detail, it is sufficient to say the effort has been successful. It was
to be expected there would be some mistakes by subordinates, and
that to some extent there would be transactions beyond the bounds
of propriety and fairness, but the total result has been a great
benefit. "
*****
"Prices have generally been maintained, demoralization and insol-
vency prevented, and greater results realized. The benefit to
general business conditions and the influence in aiding the resto-
ration of business prosperity are testified to by financiers and the
press generally. "
* * * * *
"I wish to emphasize the idea this evening that practical coopera-
tion should be extended in our line of business particularly. The
manufacturers of iron and steel in all countries should be working
together — with and for one another. "
*****
Remarks made by E. H. Gary at a dinner to the steel manufac-
turers OF THE United States, Dec. 10, 1908 —
Mr. Gary said, in part:
*****
"As I understand, it is not improper for competitors to meet and
without reserve furnish full information and express opinions con-
cerning the business affairs of all, provided they are not acting
under an agreement, express or implied. It is not wrong even
though any or all may be influenced regarding any particular busi-
ness, nor even though the result may be to prevent radical and un-
reasonable changes in prices. It is common practice the world
over for men engaged in all the different lines to frequently meet
their associates and competitors and to freely discuss conditions
and interchange views respecting the proper and reasonable con-
duct of all concerned. It IS not necessary to go into details. The
suggestion covers farmers, mechanics, bankers, laborers, merchants,
transportation companies, professional people, and all others. It
includes prices, rates, quantities, amounts, productions, sales,
wages, fees, etc. In connection with the movement under consid-
eration, we have had no agreement in restraint of trade, express or
implied. We have never intended nor resorted to any evasion,
and the public has been accurately informed concerning our ac-
4Yt)M UNITED STATES STEEL COEPOEATION.
GAEY, E. H.— Continued.
Remaeks made by, at a dinner, etc.— Continued.
tion. Therefore we may dismiss this subject with the statement
that if we shall be convinced we are wrong in our conclusions, or
that we have antagonized public interests, or if complaint is made
by anyone authorized to make it we will discontinue our efforts
to cooperate, whatever injury may ensue.
" As to the results of our efforts to cooperate, there is, I think, no rea-
sonable doubt they have been of great benefit. The prices of the
different manufacturers have not been uniform, and the prices of
each have fluctuated more or less from time to time. Some manu-
facturers have not been as considerate of the interests of others as
they ought to have been. Perhaps all of us have been influenced
by motives of selfishness. But I do not hesitate to say our move-
ment has prevented wide and sudden fluctuations, destructive
competition, disaster, and failure to manufacturers and their cus-
tomers, reduction of wages and idleness on the part of employees,
all of which, except for owe efforts, would have been certain.
Remarks made at dinner given at Waldorf-Astoria Hotel, Jan-
uary 11, 1911, BY Hon. E. H. Gary—
Mr. Gary said, in part:
* * * * #
"Some of my friends here estimate at least 90 per cent of the iron and
steel industry of this county is represented in this room. If those
absent ^ho have written to me expressing their confidence in us,
and their desire to cooperate with us, and their hope that no changes
in the course which we have been pursuing shall be made, were
here, there would be represented of the iron and steel trade in the
United States more than 9.5 per cent of the total. That, I think,
gentlemen, is most remarkable. I believe that in no line of
business in the world at any time has there been such a large per-
centage of those engaged in a business as the percentage m this
country who are going along day by day, hand in hand, pursuing
the same course, anxious to promote and benefit the welfare of all
the others. At this particular time there is not in this country a
demand for more than 50 per cent of the total capacity in our lines.
It is obvious from this statement of fact that there is not enough
business to go around, and that there is no possible way of protect-
ing one another and thereby protecting oneself except to submit
ourselvp" to the conditions as they exist and to take and be satisfied
witli '„..r fair proportion of the business which is offered. [Ap-
plause.] It is not necessary in this presence to say that if one indi-
vidual or company engaged in this business tries to secure, or that
if one individual or company engaged in this business tries to
secure or actually secures for a day or a week more than a fair pro-
portion, still it simply moans that in the long run that man or that
company gets no more than his share; he has accomplished nothing
whatever except to bring about demoralization, reduction of prices,
and heavy losses to all concerned, includiag himself. This is a
logical proposition. No man is smart enough to long continue a
practice which gives him more than his fair share of business.
[Applause.] He may succeed in one trade, he may get away from
his friend or competitor his customer for a single transaction, or two
transactions, but it is just as certain that the competitor whose
business has been taken away will the next day or the next week
enter within the domain of the one who has first trespassed, taking
away his business and adjusting, equalizing, bringing about at the
end of the year or at some definite period simply the natural divi-
sion of business, and at greatly reduced prices. And there is no
exception to this unless it be on the basis of the strong man or the
strong company having the advantage over his neighbors, if there
is such a one, and he gets the business only by means which result
in forcing his competitor out of business, and in that way antagoniz-
ing the public interest and earning the condemnation not only of
the public but of the very Government itself. Therefore it is
impracticable.
UNITED STATES STEEL CORPORATION. 4753
GABY, E. H.— Continued.
Remarks made at dinner given by, etc. — Continued.
"Now, in view of the fact that we have no right legally to enter
into any arrangement by direct or indirect means which enables
us to maintain prices, to divide territory, to restrict output, or in
any way to interfere with the laws of trade or to stifle competition;
in view of the fact that we can not legally, directly or indirectly, do
anything which may be construed to be in restraint of trade, and
therefore are relegated to the one position of treating each other on
the basis of fair, just, and equitable treatment, it behooves us to
use the greatest care in the exercise of our rights and in the trans-
action of our business, so as to make it absolutely certain that day by
day, and with reference to every transaction we are certain to recog-
nize the rights of our competitors, our friends, and the obligations
which we are under to them.
"I say in this presence to men who know by long experience — men
who know to a demonstration that what I speak is true and logical —
that we have something better to guide and control us in our busi-
ness methods than a contract which depends upon written or verbal
promises with a penalty attached. We as men, as gentlemen, as
friends, as neighbors, having been in close communication and
contact during the last few years, have reached a point where we
entertain for one another respect and affectionate regard. We have
reached a position so high in our lines of activity that we are bound
to protect one another; and when a man reaches a position where
his honor is at stake, where even more than life itself is concerned,
where he can not act or fail to act except with a distinct and clear
understanding that his honor is involved, then he has reached a
position that is more binding on him than any written or verbal
contract. [Applause.]
* » * * «
"Because at this particular time I am anxious that no man around
this table, no one connected with this business shall, for a single
moment, forget the high moral obligation he is under toward his
neighbor; because if it was the last word I could have the privilege
of saying to you, I would say, with all my might and witn all the
emphasis that I could find words to express, I consider it of the
highest importance, at this particular time, that every one of us
should have a keen and abiding sense of the personal obligation
which he has toward all others a;nd to make no mistake of running
the risk of trespassing within the domain of the rights of his neigh-
bor, who has given his confidence and trust, and who is willing at
all times to put within the knowledge, and therefore more or less
under the charge and control of others, the very direction of his
affairs."
*****
"At the present time the question of maintaining or changing the
prices of the commodities in which we deal is uppermost in our
minds, because we read and hear about this question every day
and almost every hour. I have been pained, I admit, from time
to time, to read in the newspapers that the United States Steel
Coi-poration carried a big stick, and was in the habit of inviting the
Independents, so-called, to come together for the purpose of lec-
turing them, or worse than that, of threatening them in case they
proposed to reduce prices. I call upon you as witnesses to refute
these insinuations. If it is just, if I have by my conduct or by my
language induced any of you to suppose that I believe our corpora-
tion has any advantage or is disposed to take any advantage,_ or
has intended to irrge you to fix or to maintain prices concerning
your commodities which were not in accordance with your own
views, I do not hesitate to ask your pardon. We make no claim
for ourselves, except of the pride that we have in being your
associates, and because you have given us your confidence and
you are willing to work with us . [Applause .] If any of you desire
to lower ericas at any time and will make the fact known to me,
u ,^^^^^^d not a stubborn opposer. I
ly opinions in regard to what
4754 UNITED STATES STEEL COEPOEATION.
GABY, E. H. — Continued.
Rejiarks made at dinner given by, etc. — Continued.
I think are fair prices, but I -will do it not for the purpose of expect-
ing you to adopt my views, nor for any purpose except the same
purpose that you have in mind when you express to me your opin-
ions. We deal in the open, we deal fairly, and, as I have fre-
quently said, you will always find me an easy mark. If a majority
of you shall be of the opinion that I am making a mistake in advo-
cating the maintenance of prices you will have no difiiculty in
getting me to change my opinions; and, very fortunately, the
finance committee of our corporation, which determines the policy
of the corporation and which is made up of the biggest men we can
get, are in accord with me concerning these views. [Applause.]
They have always been willing to sustain me, because they believe
the positions taken are right.
"Now, my opinion is that it would be a mistake to reduce prices at
this time; that it would do more harm than good; that instead of
getting more business we would get less business; that the average
purchaser, perhaps without exception, is not so much in favor of
the reduction of prices as he is m favor of making it absolutely
certain his prices are the same prices that another has to pay for
the game commodity. And the only reason in the mind of the
Eroposed purchaser now able and ready, willing and anxious_ to
uy — the only reason for hesitation — is that he gets the impression
in one way or another through the newspapers, and I fear fre-
quently from our own subordinates, that there is a possibility in
the future of a reduction in prices, and he is therefore waiting for
that time to come.
" It is argued in some of the newspapers that we are making a mistake
in maintaining prices, because we are keeping large numbers of our
employees from work. I do not think the claim is logical or rea-
sonable. I doubt if we would get more business if we should
reduce prices. One thing is certain, if we reduced prices in view
of the high cost of production at the present time and the low prices
of our products, which are very much lower than they were in 1907,
we can not, with very slight exceptions, reduce prices unless we
reduce the wages we are paying for labor [applause], and that, I
think, would be deplored."
*****
"I would not make an agreement under any circumstances to main-
tain prices or to do or refrain from doing anything which would
prevent me from being absolutely independent from all others in
every respect concerning every department of our corporation or in
regard to the conduct of our busines^s, and I would not ask for any
different conclusion from others. As I said before, the very fact
that it is understood we have this right, that we are independent,
that we can go out of this room and do exactly as we please without
violating any agreement or understanding, and that all must
depend upon the belief that as honorable men we are desirous of
conducting ourselves and our business in such a way as not to
injure our neighbors, must make each of us much more careful in
regard to the conduct of our affairs, and there would be no secrecy
in what we do. You may say, "Why aren't the newspaper report-
ers allowed in this room? " Because, in the first place, many of us,
unaccustomed to speak in public, would hesitate to talk in the
presence of newspaper men, and because, more particularly, we
might fear we would be incorrectly reported. This is why I sup-
pose at these meel ings you have delegated me to make a brief state-
ment to the newspapers, so that there will be an opportunity on
the part of anyone to publish what is not a fact and then make
excuse that it was based upon information that he received from
someone present at our meeting. There has never been any secrecy
on my part. I have never failed to disclose the exact facts in
regard to our meetings and in regard to our conclusions, and that
shall be my attitude. I think probably it is better for us to be here
together as a family and witho
sentatives outside of the trade
UNITED STATES STEEL COEPOEATION". 4755
GAKY, E. H.— Continued.
Remarks made at dinner given by, etc. — Continued.
"Come to our office, if you please, and we will work with you so far
as we can, legitimately. We are proud to work with you."
*****
Mr. James A. Farrell said: "I understand the policy of the corpora-
tion to be cooperate with its competitors in the effort to maintain
fair prices and the stability of business conditions by every means
permissible under the laws of the country and not antagonistic to
the public conscience."
*****
Mr. George W. Perkins said: "Some one in talking with me about it
the other day used the expression that we had reached the point
in the world's development, that we had arrived at the 'get together
stage;' whether we like it or don't like it, the point had been
reached in every way, between minds, between commodities; we
had reached the point where we are, as a matter of fact, all together;
and while our laws are not quite in keeping with that theory, the
fact is that any man in this room, if he wills it to-night, can quote
his prices anywhere in the world and come pretty near delivering
the goods."
*****
Mr. Willis L. King said: "* * * I think, therefore, to talk of
reducing the prices ought not to be considered for a moment. As
Judge Gary has very properly said, it would not result in good to
to anyone, it would not result in more business to us, it would not
do the public any good; therefore, I hope it will be the consensus
of opinion here to-night that we will maintain ths present pirices,
which are fair and reasonable, and await with jjatience the inevi-
table result, which will, of course, be better business and, I think,
in the very near future."
*****
Mr. E. C. Felton said: "* * * If there is anybody who thinks the
present business situation will be improved, stimulated, by cutting
prices, hs ought to consider just one branch of our business; he
should look at the facts and argue from those facts. Let him look
at the pig-iron situation. Now, in the pig-iron situation there has
been, in a general way, an open market; that is, prices have been
met by everybody as they saw fit, and things have gone, as you
know, down, down, down. When you go home take up last week's
Iron Age and look at the diagram that was printed in it, in which
the production of pig iron is compared with the prices during 1910.
You will find that the reduction m price not only did not stimulate
consumption, but that the production line went down faster than
the price line. Now, what is true in that line of our business will
be true in everj^ other line if we are foolish enough to go ahead and
cut prices. I think, gentlemen, that is a lesson that we should
all take to heart."
*****
Mr. John A. Topping said: "Mr. Chairman and gentlemen, I fully
agree with what has been said about the general situation by the
different speakers, and particularly with their remarks so far as they
apply to the wisdom of the policy that Judge Gary has instilled in
us to follow.
"I am more convinced than ever that any efforts at this time to
reduce prices with a view to stimulating consumption will be met
in about the manner that Mr. Felton has illustrated. The price
line will go down much faster than the production line will go up
* * *
"Now, if we are going to have cooperation in the matter of policy,
why should not we have cooperation all down the line? The way
to git that cooperation, in my judgment, is to stimulate it. The
feeling that we have ourselves around this table I think ought to
an rlpnr down the line."
4Yt)tJ UNITED STATES STEEL COEPOEATION.
GABY, E. H.— Continued.
Remarks made at dinner given by, etc. — Continued.
Judge Gary said: "Before I call the next speaker I would like to
refsr to two things. It is a fact that prices of some of our com-
modities havj been materially reduced during the last two or three
years. I think perhaps it would be a mistake for any of us to say
that they have been reduced in all respects in reference to all lines
to the point where they are now fair and reasonable, because it is the
fact that they have been reduced in many respects below that
point, and we would stultify ourselves if we were to say that two or
three years ago they had not reached that point. You can see
what I have in mind. I only want to call attention to the exact
facts here so as to make it certain that none of us will uninten-
tionally misrepresent the facts. In respect to some commodities,
I am sure at the present time they are too low."
» * « » •
Mr. E. A. S. Clarke said: "* * * \^Tiile I think it is well to coach
salesmen, we must put into them the very same spirit I think we
all have here, that we are in honor bound not to change our prices
without letting the other man know it, because then the salesman
knows that he has an answer to sive to that proposition. He knows
that it is not so; he knows it is a juggling or play on words, some
way that is given to try to shake his confidence and to induce him
to lower his price to meet that price. I think if we can only instill
in him the feeling that we have that the other man will not lower
the price, make him feel that it is simply an attempt to influence
him in some way or other, we will stiffen him up to such an addi-
tional extent that we will have our businesses managed as we want
them managed."
*****
Mr. James H. Hoyt said: "* * * We have rather a curious condi-
tion of affairs in this country at present. I am hopeful, however,
that things will right themselves. They do things better not only
in France, but in Canada. There has been a decision rendered
very lately which will be of interest to you gentlemen. They have
an act of Parliament there which is somewhat similar to the Sher-
man antitrust act, if anything can be similar to that incompre-
hensible act. The grocers of Toronto had been selling goods con-
siderably under cost in a desire to get business, which was ruining
them all. They boldly met together and entered into an agree-
ment and fixed prices with a penalty clause, and, of course, the
consumer, who always wants a thing at less than he ought to get it,
immediately took umbrage. The judge, in interpreting that act,
said that the Parliament had passed the act primarily for the bene-
fit of the consumer; that Parliament could not mean by the pas-
sage of any such act that the consumer was to receive the benefit
at the cost either of the merchant or the manufacturer; that the
merchant and manufacturer must be entitled to receive cost and a
fair profit on their wares; that if the act meant directly or indirectly
to produce any other condition of things it would be class legisla-
tion passed in favor of the consumer, and therefore the only thing
for the court to determine was whether, under this agreement, the
prices were too high, and if they were not too high, but were fair
and reasonable, the arrangement made by the grocers of Toronto
was a fair and reasonable and proper arrangement; and he decided
in that case that the prices were not too high."
* * » » »
Mr. L. E Block said: "I believe with Mr. Topping that there is a
good opportunity to work along the lines of cooperation from men
other than those that attend the meetings, both among the sales
organization and the men generally in the Ibusiness."
* * * « •
Mr. A. F. Huston said: "* * * We are all of the same opinion
about the maintenance of prices "
UNITED STATES STEEL OOEPOBATION. 4757
GAKY, E. H.— Continued.
Remarks made at dinner given by, etc. — Continued.
Mr. J. C. Butler said: "* * * I am just getting in the statistics of
the stock of pig iron on hand on the 1st of January, and they are
pretty nearly all in. Some of the people that are making pig iron
are pretty nearly all in, too. [Laughter.] I was surprised to find
the small quantity of steel-making iron in the entire Pittsburgh
and Mahoning Valley and eastern district, excluding the Soum.
There was less than 250,000 tons. Now, if the Steel Corporation
and the large independent concerns would shut down their furnaces
for two days, they would have cleaned up this accumulation that
is hanging over the situation like, I think it is, the sword of
Damocles."
*****
Mr. F. S. Witherbee said: "Mr. Chairman and gentlemen, I was very
much impressed this fall, in visiting Germany and having the
opportunity to discuss matters with a very prominent iron and
steel manufacturer in that country. He said that while we had
the best plants and the largest output, etc., that the one glaring
weakness with us in this country was the lack of stability in prices.
He said, 'You never can succeed permanently in maintaining
prices unless you meet frequently together. 'Now,' hesaid, 'the
reason we in England, Germany, France, and Belgium succeed in
maintaining prices and stopping fluctuations is largely because
we meet frequently and get together.' Now, I told him — which
I am very glad to repeat here to-night — that we were getting closer
together, thanks to Judge Gary and others, by these frequent din-
ners and meetings that we have had, and that we are no longer
isolated as we were a few years ago. We are getting together and
studying our differences, and in a very short time I think we can
meet the criticism of our German friend as to lack of stability in
prices. Judge Gary and others started the movement by making
the prices of rails practically stable, and there is no reason, it
strikes me, why in time we should not make the prices of other
articles we manufacture quite as stable as rails are to-day, or cer-
tainly much more than they have been in the past, I want here
to publicly acknowledge to Judge Gary my personal gratitude for
what he has done toward that end." [Applause.]
*****
Mr. David Reeves said: "Judge Gary and gentlemen: I am heartily
in accord with the spfrit that brings us together frequently at these
conferences, and I think the policy that we have been pursuing is
wonderfully vindicated now that we are produciug only 50 per cent
of our capacities, and no great demoralization in many Imes has
followed. I think we are to be congratulated in having a wise
policy laid out for us and having followed it so well." [Applause.]
*****
Mr. I. A. Kelly said: "I do not know that I can say anything that
will add to what has afready been expressed here so ably by Judge
Gary, Mr. King, Mr. Topping, Mr. Farrell, and the other gentle-
men present who have expressed themselves. I heartily cooperate
in everything that has been said here to-night, and so far as our
company is concerned we are ready and willing to still cooperate
to do what we can to maintain prices." [Applause.]
*****
Mr. Powell Stackhouse said: "* * * As to the matter of business,
I stand just about where I have always stood in this matter. _T
think any change in prices at this time would be a calamity, it
would result in no good to the purchaser, and would be of no
benefit to the manufacturer. Any reduction in price only has th
effect of unsettling business; and in the steel lines there is one
thing you can bear in mind, and that is that, in selling any quantity
of steel that might be sold through a reasonable reduction of price,
would only go into warehouses and come into competition with
' ■ J J.1 j_-- sj. 1^ jjg certainly unwise in any
4758 UNITED STATES STEEL, CORPORATION.
GABY, E. H.— CooRnued.
EEMARKS MADE AT DINNER GIVEN AT WALDORF-ASTORIA HOTEL, MAT 4,
1911.
* * * i *
Mr. Campbell said: "* * * A great many men treat labor organi-
zations without any great consideration and try to get rid of them
in order to take advantage of their men. You will find always
when that is done the employers are continuously in trouble. The
way to keep out of trouble with your employees, in my opinion, is
to treat them fairly and not try to take advantage of them, either
by reducing their wages when they can not aSord to have them
reduced or making the working conditions so hard that it is onerous
on them and they are unable to bear them.
"I never have known a time when mills were running to only 50 or
60 per cent of their capacity and when thei-e has been so much
unemployed labor as there has been recently that the wages have
not been reduced * * * "
*****
Mr. Schiller said: "Judge Gary and gentlemen: Unlike my asso-
ciates, I requested Judge Gary to give me an opportunity to aay a
few words to you. I do not know that I want to add anything to
what has already been said by the other members of this committee
on the subject of welfare of workmen; but the work that this com-
mittee has been doing for some time past — the committee appointed
last autumn by the American Iron and Steel Institute to consider
the question of the six-day-week continuous operation — this com-
mittee has been at work on the subject for a good while and can'ied
on a very A'oluminous correspondence with a large number of those
who are identified with manufacturing operations involving the
employment of labor seven days in the week, and a number of
different plans have been submitted. As was to be expected,
these plans were all subject to more or less criticism . Finally, how-
ever, a plan was evolved that seemed to meet the approval of a
majority at least of those with whom the committee communicated.
Upon ascertaining that fact the institute, at a recent meeting, and
the directors passed a resolution instructing the committee to
supply the secretary of the institute with copies ot the plan, for
distribution to such members as were engaged in manufacturing
operations involving continuous employment. This has been done,
or will be done, in the near future * * * "
Mr. Farrell said: "Judge Gary and gentlemen, I am somewhat in a
quandary, for the moment, as to whether I am a prophet or a phi-
losopher, and while I do not wish to digress from the subject which
has been assigned to me — that is, to say something on trade condi-
tions— I would like to tell a little story about a conversation which
took place the other day between two gentlemen. One of these
gentlemen claimed that he was a philosopher, and the other man
asked him upon what grounds he made that claim. 'Well' he
Kiid, ' I am the owner of two limekilns, I actually own both of
them, but I am only supposed to be the owner of one. I think I
have gradually acquired a philosophical temperament, because it
is part of my daily pastime to read a large correspondence from the
customers of the limekiln, which people suppose that I do not own,
claiming that the proprietor of that limekiln is continually cutting
my prices. ' [Laughter.]
" Now, there is a great deal in that story, and there is a growing ele-
ment to-day in the business world who can be believed on almost
any other subject but that question of prices — competitors' prices
especially."
*****
"We have got to sacrifice our order book unless we want to precipi-
tate a condition of affairs which, as Mr. Schwab says, means an era
of low prices and perhaps a continued situation in that line. If we
have patience 1 am satisfied within a very short time we are going
to be very well pleased with t
although we should bear in m
UNITED STATES STEEL COBPORATION. 4759
GABY, E. H.— Continued.
Remarks made at dinner, etc. — Continued.
try to-day would not absorb the existing capacity oi the country,
and if any man feels lie can operate bis plants at 100 per cent or
80 per cent and seeks to do it on a consumptive demand that is in
a lesser ratio, why he is simply contributing to an undesirable
thing in my opinion. We do not feel that way in the steel corpo-
ration. We believe in fair competition — in live-and-let-live
methods. All we are expecting is our fair share of the business,
and we are prepared now, as we have been in the past, to make as
many sacrifices as anybody else when it comes to keeping within
what we consider to be our range or our share of that business. ' '
[Applause.]
Judge Gary said: " Since the question of prices has been mentioned
I feel justified in referring to one branch of industry, and that is
pig iron. The price of pig iron at the present time must be too
high [laughter]. It is not more than $1 or ?2 below the actual
cost, and I think something should be done to discipline the
manufacturers of that product. We know, because we have heard
it said frequently, that if pig-iron people would reduce their prices
the demand would instantly increase and it would not be long
before they could increase their sales and sell all they could pro-
duce. Of course, these criticisms are made by those who know
least about it. They are like the old maid who is constantly talk-
ing about children. In fact, her time is mostly occupied in talk-
ing and none of her time in nursing.
" I think if there is any man competent to defend himself against the
charge that he is restraining trade and competition by upholding
arbitrarily the price of pig iron, it is our old and esteemed friend
Joe IButler. We will hear from him. "
*****
Mr. Butler said- "* * * And with particular reference to the
pig-iron industry — as I have said this evening and on former occa-
sions— it has been neglected and overlooked and not given the
attention that it should have been. I think we should try to form
a national association of pig-iron manufacturers, not with the idea
of sustaining prices, but with the idea of cooperating on the same
lines that you people have done in the finished end. I think
that is one of the things that we should take fii'mly in hand, and
in the immediate future. That I think applies more especially
to the manufacture of foundry iron. I happen to know, I have
been instrumental in gathering statistics, and as late as the 1st of
April I think I knew within 1,000 tons, one way or the other,
the amount of pig iron on hand in this country, and the great bulk
of it was foundry iron. The amount of steel iron on hand that was
accumulated could be used up in a week, and if they would shut
down for a month, there would not be a ton of that sort of pig iron
left. And I earnestly hope that through the American Iron and
Steel Institute or in some other way the producers of pig iron will
get together and bring about a better condition of affairs. "
*****
Mr. Kino- said: "■* * * But in the meantime we should conserve
o'lu: own interests, for the average buyer always wants the lowest
price, the cost price, regardless of all conditions, especially when
business is slack. We can not create a demand of 100 per cent nor
tell when it will come, neither can any one or more of us run 100
per cent on a demand of 60; but this we can do— we can run our
mills according to the demand, and ask a fair and reasonable price
for what we produce, and this in my opinion is the sensible and
proper thing for us all to do. "
GATES, CHAS. W.—
approached by brokerage house as to purchase of TCI .
about year before sale, for USSC - i— H-
4760 UNITED STATES STEEL. COKPOEATION.
GATES, J. W.—
was in Southern Wire Co. 1880, in St. Louis 1 — 24.
acquired St. Louis Wire Mill Co i— 24.
built Braddock Wire Co i— 24.
acquired control Lambert & Sheffield Wire F. Co 1 — 24.
and then formed Cons. Steel & Wire Co. of Illinois. . 1 — 23-24.
resigned as president Illinois Steel Co .- Ills. St. Co. Dir.
Dec. 14, 1898.
shareholder in Trust Co. of America 1 — 15.
spoken to by J. P. Morgan with reference to stopping
Carnegie from building Railroad and Tube Works
(1899-1900) 1—31.
had interview with J. P. Morgan and C. M. Schwab
as to stopping Carnegie and projected USSC 1 — 31.
converted doubtful assets into cash by reason of big
market for steel stock 1 — 59.
Oary says Gates must have come to beHeve in open
competition 5 — 271.
was membfer TCI. sjmdicate and director TCI 16 — 1114.
was director Republic I&S. Co 16 — 1114.
held 18,000 shares TCI 1—Q.
held 24,000 shares TCI 1—lb.
offered $150 by Morgan and refused 1 — 13.
paid $108, refused $150 from Morgan for TCI 7—13.
states cause of depression TCI stock 1 — 9.
negotiations to sell TCI 1 — 4.
did not get back from Europe before TCI. sale was
negotiated, although he did get back before it was
concluded 16—1225.
arranged for payment of calls upon him for TCI. stock
when he left for Europe in June preceding panic on
Oct. 17 :r— 238.
regarded sale of TCI. as forced sale 1 — 14.
did not find any resolution that minority holders
should be permitted to sell TCI 4 — 190.
Gary says Gates did not insist on 10 point increase . . . 4 — 190.
received $96, market value in USSC. bonds for TCI.
stock 1 — 17.
GAYLEY, JAMES—
was connected with the Crane Iron Co. of the Lehigh
Valley in 1877 8 — 425.
was with Carnegie Co. from 1885 until 1901 8 — 425-6.
1885, began with Carnegie Co. in pig iron department;
1892, general manager Edgar Thomson; 1896, went
to oiEce to procure ore; 1892, partner 6 — 303.
was first vice president of USSC, with duty of pro-
curing and assembhng raw material 6 — 313 .
has not been with USSC. in some years 3 — 107.
resigned as director and officer of USSC. Jan. 1, 1909 . . 7 — 377.
had charge of procuring and assembhng raw material
and railroads and steamships 7 — 377.
did not know the name of the treasurer to whom the
check for fines was drawn 7 — 369-70.
Mesabi Range, amount of ore can be accurately deter-
mined 7 — 372.
Gayley promises to furnish a blue pri-* -' *'>-'• ~-»fii»
of the DMN. road
UNITED STATES STEEL OOKPOEATION. 4761
GIVEN, WILLIAM M.—
25 or 26 years engineer, familiar with Birmingham
district and was one of appraisers of TCI. appraisal
committee ^g ggg
will prepare a table of value of ore land of TCI. on a
royalty basis i5— 1009.
GEISCOM, CLEMENT A.—
director USSC
director Penn. R. R g 3]^5
was a director Penn. R. R. before becoming director
of USSC 6-329.
HALL, ROBERT C—
president Pittsburgh Stock Exchange 4 — 158.
Pittsburgh Coal Co. USSC. contract 4 — 159.
HANNA, LEONARD C—
was^told it was necessary to sell the TCI. syndicate
stock to the USSC is — 906.
Schley telephoned on Sunday preceding sale of TCI.
to USSC. that banks had asked for substitution of
other collateral for TCI IS — 854.
would have been glad to continue interest in TCI. . . 13 — 890.
had no knowledge of hammering TCI. and could not
bring himself to believe that it was done IS — 879.
was present at all conferences between the two inter-
ests concerning TCI. sale, beginning with Monday
morning, the same day Gary returned from Wash-
ington 75—863.
held at Morgan's librarj', between Gary and Frick
representing USSC. and Schley and himself and
L. C. Ledyard, counsel for TCI. syndicate .?5— 863-864.
says it was understood before they went to Morgan's
library why they should sell the stock IS — 865.
has been identified with the iron ore interests of
Lake Superior and coal in Ohio and Pennsylvania
since 1875, and also with pig iron business in
Pennsylvania, Ohio, and New York; and was a
member of the TCI. syndicate IS — 842.
HARRISON, C. C—
president Atlanta Compress Co . , to disjjose of CSOO . ' S
stocks in 18 ginning companies using square-bale
process, which are not profitable CSCO. Dir.,
June 15, 1908.
HEWITT—
resigned USSC. Pin. Com.,
Nov. 30, 1909.
HILL, JAMES J.—
has not any interests in Mesabi Range, but Great
Northern R. R. made lease to USSC. companies.. . 3 — 88.
corporation not the Great Northern made ore lease. . S — 88.
interests did not practically control Mesabi ore S — 89 .
interests had Mesabi ore holdings not so large as ad-
vertised 5—09
interests had 200 to 250,000,000 tons, or 10 per cent of
total Mesabi ore .^- 5—89.
Hill ore lease, so-called, can be canceled 1913 S — 108.
ore lease went into effect 1907, and it made those who
1 i-_j 1; — *l,«i-- n-^QQtQi- i-alue 19 — 1410,
19— un.
^rz)t freight
4762 UNITED STATES STEEL COKPOEATION.
HILLHOTTSE, JAMES—
objections in letter to purchase of property of Ameri-
can Steamship Co ASWCO., Dir.
Dec. 10, 1900;
Jan. 28, 1901,
HODGE—
stockholder TCI ^—178.
objected to TCI. acquisition 4 — 178.
sued USSC. in New Jersey 4—179.
HOYT, JAMES H.—
lawyer is attorney for Pittsburgh Steamship Co., at
Gary dinner 5 — 275.
may be attorney for Pickands, Mather & Co., and
Cleveland, Cliffs J. Mining Co., spoke at Gary din-
ner 5—275-276.
HUSTON, A. F.—
president Lukens Iron & Steel Co 11 — 649.
president of the Lukens Iron & Steel Co.: Nov. 9,
1900, had printed by S. B. Kauffman, a printer of
Coatesville, Pa., as either president or secretary
of the pool then forming, known as The Steel Plate
Association of the United States, an agreement be-
tween CSCO., Jones & Laughlin, Illinois Steel Co.,
Crucible Steel Co. of America, Otis Steel Co., Tide
Water Steel Co., Lukens Iron & Steel Co., Worth
Bros. Co., Central Iron & Steel Co., American Steel
& Wire Co., dated Nov. 9, 1900 iO— 551-555.
stated to Kauffman that he was having it printed as
an officer of the pool then forming 10 — 552.
steel plate agreement was sent to him from New York
to be printed in Coatesville 11 — 655.
president Lukens Iron & Steel Co., spoke at Gary
dinner Jan. 11, 1911 (p. 38), in favor of maintaining
prices 5 — 277.
JACKSON—
was supervisor of pools of Wire Rope Association 10 — 566.
KATTFFMAN, S. B.—
J. R, Van Ormer said that the laws of Illinois were
such that if the agreement got out the president of
the Illinois Steel Co. would be imprisoned 10 — 562.
S. B. Kauffman: Had no knowledge whether an
agreement similar in terms was executed, except
that Mr. Huston said that his company never asked
for anything oiit of the pool and that the other AGO.
in Coatesville did. The Worth people in the same
town were continually asking the pool 10 — 561 .
KELLOGG, FRANK B.—
represented subsidiary companies of USSC. and pre-
sented a bill, October, 1907, for 315,000, which was
approved by the USSC 7 — 389.
Attorney for DIR. and pre^-iously attorney for DxMN . . 7 — 382-3.
KELLY, J. A.—
president Ashland Steel Co. spoke at Gary dinner in
favor of maintaining prices 5 279 .
KESSLER, GEORGE A.— ,
received $160 for TCI i_10.
asked Gates to trade 22-2400 shares with More-an for
H. 150
UNITED STATES STEEL CORPOEATION. 4763
KESSIES, GEORGE A.— Continued.
talked to Morgan about TCI. sale 1 — 15.
was taken into TCI. syndicate because it was neces-
sary to have his stock to obtain a control, but he
insisted that he should still retain a part of his own-
ership :/i°— 886.
had 10,300 shares of original syndicate TCI 13 — 876.
had considerable TCI. outside of syndicate IS — 889.
KING, WILLIS L.—
vice president and general manager, Jones & Laugh-
lin, approved maintaining prices, saying that Gary
has said it would not result in good to anyone 5 — 269.
to reduce prices t — 70.
treasurer of Structural Association 24 — 1713.
officer of Jones & Laughlin was treasm'er of Plate
Association 10 — 600.
vice president of Jones & Laughlin and treasurer of
Steel Plate Association was in Brussels, at the con-
ference ii— 643-7.
KNAPP, K. K.—
presented claims of Chicago banks upon assignment
to them of Bering Coal Co USSC. Fin. Com.,
Feb., Apr. 2 and 20,1909.
KNOX, P. C—
$25,000 compensation paid by HCFCCO HCFCCO. Dir.,
Mar. 28, 1889.
represented Frick in Cleveland at Southwest Connells-
ville Coke Co. arbitration Ills. St. Co. Dir.,
Dec. 17, 1897.
LANE, GARDNEE N.—
elected in place of Thayr, deceased, as director USSC. Fin. Com.,
Apr. 18, 1911.
LEDYARD, LEWIS CASS—
was attorney for Col. Payne, and was not attorney for
USSC., or Moore & Schley, or J. P. Morgan, nor
for TCI. syndicate i.4— 932-33;
.4—177.
was counsel for TCI. syndicate managers or legal
adviser i5— 908.
did not know of syndicate agreement and supposed,
when referring to Schley's condition, that he was
talking about brokers' accounts for stock which they
were carrying upon a margin 14 — 942.
Schley went to him and they went to USSC. to nego-
tiate purchase of TCI i5— 876.
was told about TCI. situation by Schley in general
way 16 — 1116.
Topping with Schley, stated to him the mineral fee
ownership, export possibilities and cheap naviga-
tion to Mobile, and future value in southern market
and 0. of TCI .Z7-1239.
Gary suggested a loan of 16,000,000 and Ledyard sug-
gested three $1,000,000 loans. But the loan of
$6,000,000 and the $3,000,000 guarantee fund were
proposed in consideration of the sale of TCI. going
through i4— 951.
says Gary is in error as to the proposition by him of
$6,000,000 loan, and that there was no suggestion
r.f a loon fvnm individuals, except from Ledyard. . . 14 — 952.
4764 UNITED STATES STEEL COEPOKATION.
lEDYABD, LEWIS CASS— Continued.
suggested that USSC. second-mortgage bonds would
just as soon be accepted as cash for TCI. stock
(Gary thinks) 4—170.
when asked why all the financiers were so friendly^ to
Moore & Schley, did not aid them without having
gone to the extent of a proceeding which required
the consent of the Federal Government, Ledyard
merely said that the question involved the con-
clusion that Federal consent was necessary, which
he disagreed with 14 — 958-59.
UNDABTJRY, R. V.—
promises to furnish everything asked for 9 — 501.
offers to furnish information requested to committee. . ^ — 70.
states table of percentage production put in evidence;
excluded the export trade 9 — 523.
stated that there were two suits, of which the Hodge
suit was the second, charging overcapitalization,
and in which the USSC. proved the capitalization
as made 9 — 527.
says USSC. as such was in no way connected with
pools; "but one of the subsidiaries of the USSC.
was, though not directly " 10 — 567.
states that nobody claims that Schwab as president
of the Carnegie Co. was unaware of the pool agree-
ments with the Carnegie companies and three
other subcompanies S2 — 1544.
states that if valuation of $700,000,000 placed by Knox
Smith upon the property was correct, and bond
conversion added $200,000,000 of bonded debt to
$500,000,000 already outstanding, there would have
been left a deficiency of $50,000,000 for the pre-
ferred stock and nothing for the common stock 22 — 1563-64.
states that whether the contract between Crucible Co.
and USSC. contains the provision that that leading
interest will not engage m competitive business or
not "we have all understood that just Avhat the
minutes intended to be carried out was carried out. 2S — 1631.
states in conversation with committee that this is to
offset the drawback allowed by United States cus-
toms to importers who make up jroods and export
them. It does not appear that Harvester imports
any goods and manufactures for export 21 — 1518.
promises to take up subject of campaign contributions;
and will find out if any had been, and consult
others as to furnishing the committee with such
information SI — 1499.
states the USSC. made one contribution of $10,000 for
political campaign purposes in 1904 SI — 1499.
no campaign contribution made since 1906 when
resolution was passed forbidding it SI — 1499.
says Mr. Reed referred to in "Mr. Reed's Senate bill
3137" referred to as approved by the governor, in
minutes of directors Apr. 4, 1902, was a senator
from Somerset County SO — 1453.
said Great Northern's portion of Mesaba Range was
leased to USSC. companies 3 — 88.
8a>-s Clark Williams was in touch with the situation
night and day during panic 4 — 189.
UNITED STATES STEEL CORPORATION. 4765
LITTLETON, M.—
Gary, stated to, his idea of uniform State corpora-
tion laws and Federal license upon proven cor-
poration efficiency and character to engage in
interstate commerce gS — 1609-10.
suggestion as amending law being most important 25 — 1610.
suggestion as to repeal, nonenforcement, or amend-
ment of Sherman law Z3 — 1611.
LYNCH, THOMAS—
elected president HCFC. Co Dir.,
June 30, 1897.
MacEAE, E. J.—
states the net income of the subcompanies is prac-
tically the gross income of the holdings company.. 9 — 519.
MATHER, SAMUEL—
stockholder in Lackawanna Co USSG. Fin. Com., Sup.
Ext., Nov. 20, 1904.
$2,000,000 voted to him for his services in the pur-
chases of the Aragon mine for the National Tube Co. USSC. Fin. Min.,
Feb. 4, 1902.
elected to finance committee USSC. Fin. Com.,
Nov. 30, 1909.
is director of Lackawanna and also USSCO 5 — 222; 6 — 316.
MOORE, WALTER—
member of TCI. appraisal committee 15 — 1022.
had 27 years' experience in mining and iron business
and is president of the El Dorado Coal Co., which
has about 2,500 acres i5— 1026.
MORELAND, A. W.—
was auditor 5 — 294.
MORGAN, J. P., Jr.—
elected to fill vacancy caused by death of H. H.
Rogers USSCOR. Fin. Com.,
May 25, 1909.
MORGAN, J. P.—
was responsible head of USSC 19—14.01.
was responsible head of USSC Z0—142Z.
was requested to attend finance committee meetings,
although not a member ^0 — 1425.
did not control larger number of banks in New York
City ^-174.
has great power for harm 4 174.
never allowed his interests in other concerns to in-
fluence his conduct of USSC, says Schwab .?9— 1401.
was always at Schwab's right hand consulting about
the USSC, but Schwab "almost invariably had
the same reply from him, and that was that 'the
directors of this company are the people, Mr.
Schwab, whose wishes and views we are to take
pertaining to this company '" 19—1401.
coowner of Steel Co. and railroads and sells railroad
supplies and how does he fix price (asked Collier's
Weekly May 27, 1911) ■- -?^9.
by cable caused associate to increase orders for rail-
road goods, as railroad owner buys and as Steel Co.
n^lla tViom 1 — 49.
4766 UNITED STATES STEEL COEPOEATION.
MORGAN, J. P.— Continued.
did not get 55,000,000 for organizing International
Harvester Co ^5— 1649.
owned Elgin, Joliet & Eastern R. R. Co i— 30.
formed National Tube Works .?— 31.
desired to stop Carnegie from building railroad and
tube works 1 — 31.
J. P. Morgan's statement was that Carnegie would
demoralize railroad business and tube business 1 — 43-4.
acted upon statement that Carnegie would demoralize
railroad and tube business 1 — 44.
refused to allow ilcCausland of CSCO. to place
National Steel Co. notes in Pittsburgh, but finally
allowed §700,000 to be so placed, Feb. 3, 1902.
Contract with Fuller Co. deferred because not fair
to put through important contract while negotia-
tions pending for new combination CSCO. Dir.,
Apr. 1, 1901.
would not put up $80,000,000 when Frick wanted to
make good his option, but later bought for $500,-
000,000 or $600,000,000 2.4—1724.
bond conversion syndicate got $6,800,000 ;?2— 1538-9.
risk was that if stockholders did not take more than
40 per cent of the $80,000,000, the other 60 per cent
would be left in the hands of the syndicate, and for
this the commission was paid in part 22 — 1540.
bond syndicate had to deposit 980,000,000 of pre-
ferred stock with them, in truct, to carry out con-
version plan, at the time the syndicate was formed. 2'^ — 1581.
consulted as to reducing wages and advised against
it and wages were not reduced 22 — 1568.
Schley says he does not think it is fair to designate a
certain line of the New York banks as Morgan
banks. But he says none of the Morgan banks
requested him to take up TCI. loans 16 — 1100-1.
negotiation to buy TCI. (Nov. 6, 1907) 1—i-i.
suggested that Steel Corporation would buy TCI.
stock 1 — 9.
offered Kessler 150 for TCI. stock 1—10.
offered $150 for Gates' stock through Kessler 1 — 13.
which Gates declined i — 15.
talked to Kessler i — 16.
Ledyard went to him and proposed sale of TCI. on
behalf of Schley 14 — 935-6.
told Ledyard that Gary and Frick had gone to Wash-
ington to tell the President the situation of Moore
& Schley, and that they did not want to go on with
the transaction, which they were doing solely for
the purpose of saving the situation in New York if
they were going to be attacked by the Government
for doing it for other purposes 14 — 940-44.
"The message came from his office down town that
they had heard from Washington, with the result
that I imderstaud no objection was made;" that is,
by the Government. Ledyard said: "I do not
want you to take in literal terms. I do not remem-
ber. I only know that the impression was the
Government would not feel it its duty to attack
this transaction upon the ground that it was not
what it purported to be " - • ""
UNITED STATES STEEL OORPOKATION. 4767
MORGAN, J. P.— Continued.
was not present at any conference at wMch Hanna
was present 13 — 865.
at bankers' conference Oct. 22, Tuesday night, with
Cortelyou f i— 1502.
with help of Banker Tillman, gave Thome enough
to keep him open until 5 o'clock Wednesday, and
next day got a fund of $10,000,000 gi— 1509.
Thome tried to get a report made to him by people
in Morgan's interest that Trust Co. of America
was in a solvent condition, and when that was
done Morgan assisted them. That was about Nov.
6, that $10,000,000 loan was made and report had
been made Nov. 4 gs — 686.
hie bank was probably contributing to money raised
by C. to loan TCI 25—1687.
only loaned $300,000 to Trust Co. of America 25—1687.
contributed money to Trust Co. of America 25 — 1687-8.
withdrawals of $666,000 on Oct. 26 from Tmst Co. of
America taken by Morgan 25 — 1701.
put up $3,000,000 to be used as guaranty in strength-
ening loans, etc 14 — 950.
got no commission on TCI. sale, and issued negotia-
ble receipts for the bondfe which were substituted
for the TCI. stock 14—^51.
did not know of Thome getting $1,500,000 from
Woodward of Trust Co. of America 25—1667-8.
statement by Perkins that $60,000,000 loaned by
Morgan referred to $25,000,000, subscribed by
various bankers to protect stock exchange houses. . W — 1474-5.
USSC. second bonds turned over to and TCI. stock
received by 4 — 176.
MOKKIS, EFFINGHAM B., OF PHILADELPHIA,
PA.—
director Penn R. R. & Penn Steel Co. and Cambria
Steel Co 6—316.
MORRISON, THOMAS—
was a furnace man with Carnegie Co 5 — 294.
NOLEN, N. W.—
comptroller of Crucible Steel Co. of America produced
statement of account of that company in Steel Plate
Association 1^ — 822-4.
OGLEBAY, EARL W.—
had about 7,000 shares in TCI . syndicate 14—920.
had 25 years' experience in ore, iron, and steel 14 — 920.
went into TCI. syndicate at request of Hanna 14 — 921.
was member of TCI. syndicate and director TCI 16—11.
was director Republic Iron & Steel Co 16 — 11.
came to New York and saw Ledyard, Schley, N. M.
Allen, Topping, and Hanna at Moore & Schley's of-
fice, 747 Fifth Avenue, and decided to sell his stock 14 — 92.
is interested in mines on Lake Superior ^-^-92.
OLCOTT, W. J.—
has charge of all mining operations 7—377.
4768 UNITED STATES STEEL COKPOEATION.
PALMEE, WILLIAM P.—
indictment in United States v. William P. Palmer, of
Blue Copper Wire Association to be placed on rec-
ord iO— 592-597.
(Note. — This is indictment to whicli defendant
pleaded guilty.)
PAYNE, O.—
suggested that Ledyard see Morgan as to sale of TCI.,
but before doing so to get Schley's consent, which
Ledyard did, and then Ledyard and Payne talked
it over 25—1617-8.
Perkins says Payne did not suggest to Ledyard to get
Schley to sell ; but says it is possible 25 — 1617-18.
is a director and has interest in TCI 11 — 1101-2.
knew TCI . situation 16—1116.
Payne had no interest in Moore & Schley 16 — 1116,
had taken over 15,000 TCI. in exchange for current. . 14 — 952.
put up his own securities, other than those received
from Moore & Schley, to secure $1,000,000 credit
with Morgan i.^— 950-953.
Schley exchanged industrial not usable for collateral
for current stocks belonging to Col. Payne to the
amount of about $5,000,000 to $8,000,000 i6— 1066-67.
PEACOCK, E. A.—
might give the name of the treasurer to whom the
checks were drawn for fines for violating pool agree-
ments 7—370.
PEEIN, CHAELES PAGE—
is consulting engineer with practical experience in
iron and coal properties and manufacture since
1884, and is interested in the Embree Iron Co., near
Johnson City, Tenn., and was member of TCI. ap-
praisal committee , 15 — 971-2.
has had varied practical experience in iron and steel
industry .Z5— 1033.
examined or appraised Birmingham Iron & Coal Co.
ore land i5— 973.
company in which he is interested has 150,000,000 Cu-
ban ore .?5— 1028-9.
PEEEINS, GEOEGE W. (Including General and Ten-
nessee CI&RR.)—
General —
was partner of Morgan at time of consolidation
(USSC.) .4-177.
was not a member of Morgan & Co. at time organi-
zation of I'SSC, but became such a riionth or
two later 20—1418-19.
was engaged in life insurance business at time. . . 20 — 1419.
was vice president and chairman of finance com-
mittee of New York Life Insurance Co 20—1419.
became associated with International Harvester
Co. in 1902 20—1419.
is chairman of finance committee of International
Harvester Co 25 — 1641.
kept minutes finance committee from first meet-
mg, or acted at secretary at most meetings up
to Nov. 20, 1901 , when he was mn- "
UNITED STATES STEEL CORPORATION.
4769
PEBKCNS, GEOEGE W.— Continued.
General — Continued.
acting secretary of the finance committee on
May 29, 1901 25—1640.
resigned as chairman of finance conmiittee USSO. Fin. Com.,
Feb. 26, 1907.
he again acted as chairman on July 16, 1907, and
was either in the chair or present at the great
majority of meetings of the year 1911 USSC. Fin. Com.
July 16, 1907;
June 26, 1911.
in chair of finance committee USSC. Sept. 2, 1902,
and the consolidation or dissolution of subordi-
nate railroad companies at Milwaukee and
other mills referred to chairman with power. - . USSC. Fin. Com.
Sept. 2, 1902.
does not know of 5 per cent reduction in price to
Standard Oil Co 25—1626 .
does not know of contract with Crucible Steel Co.
for price 13 below market price 25 — 167.
swears he knew nothing of the pool agreements in
the record with the companies of the USSC. . 22 — 1541-2.
does not remember purchase of Shelby Tube Co.
Negotiations in minutes May 29, 1901 25—1641.
Perkins swore he did not know what syndicate
of Morgan & Co. received 29, — 1576.
never made campaign contributions to be repaid
by USSC 2i— 1500.
swears he can not answer whether he was con-
nected with any other company or with any
other firm or association of persons in a busi-
ness capacity that made campaign contribu-
tions to political funds after his connection
with the United States Steel Corporation
began 20—1442-43.
swears from his knowledge of the policy of the
USSC. any such contributions would have been
put on the minutes of the finance committee.
But he says he has no personal knowledge. . . . W — 1456.
refused to answer as to campaign contributions. . 20 — 1455.
says from his knowledge of the manner in which
the United States Steel Corporation has been
conducted if it had made contributions in any
political campaign since its organization, in his
opinion that would appear upon the records of
the USSC "■ 20-1457.
was active in conversion of bonds for $200,000,000
of preferred stock 20—1460.
states de does not know who was the "leading
politician " referred to in the minutes, as up for
reelection, to whose campaign fund a request
for appropriation had been received '^0 — 1427 .
swears he does not remember that the USSC. was
advised it had no right to make contributions
for political purposes 20 — 1427-8.
swears he did not remember Swanks' letter about
Protection and Prosperity by Curtiss 20—1420-80.
swears that he has not the slightest doubt that lie
knew of the Swank letter on Protection and
Prosperity and voted upon it 20 — 1431 .
4770
UNITED STATES STEEL COEPOEATION".
PERKINS, GEOEGE W.— Continued.
General — Continued.
waa member of Morgan firm and also director of
USSC. when bond conversion was put
through 2^—1510.
says he does not know how the stock was got that
was exchanged in the bond conversion deal,
but knows that no one in syndicate made any
profit except the per cent in the contract 22 — 1589.
does not know any director or officer of USSC.
that has bought or traded in its securities ex-
cept for investment 22—1589.
has sold USSC. stock, but never sold short 22—1591.
has never been in any pool or association to oper-
ate in stock of USSC 22—1591.
bought through stock brokerage houses, viz, J. P.
Morgan Co. when he was a member of firm 22 — 1591.
written statement in regard to the bond conver-
sion plan was to be filed 20 — 1494.
can not recollect what amount of USSC. bonds
were held by New York Life Insurance Co 20 — 1461.
panic condition on Nov. 2, 1907 20— 1471 .
does not know how many members of USSC.
board of directors were members of the bond
syndicate 22—1578.
does not know how many members of the Morgan
firm were members of the bond sjoidicate ft — 1578.
can not name any of the bond syndicate who were
then directors of the USSC 22—1578.
stated that the preferred stock would only be ex-
changed for second-mortgage bonds when
below par so that the holders might feel that
there was something in it W — 1411-91 .
did not go to Washington to see Garfield about the
Hansbrough resolution to investigate Interna-
tional Harvester Co., nor Herbert Knox Smith,
and did not go with either to see the President. 25 — 1642.
was at Smith's ofiice several times in regard to
the person who was in frequent and almost con-
stant communication with Commissioner Gar-
field and more or less with the President him-
self 9—497 .
address Aug. 7, 1911, at :Michigan College of Mines 25—1623.
speech at Houghton, Mich., containing sugges-
tions of subjects to be investigated, published
in Washington Post Aug. 7, 1911 22—1566.
states that Congress has called for destruction of
great business enterprises 25 — 1624.
states prices have decreased by reason of organi-
zation of USSC. and that USSC. has decreased
the price of articles to commerce generally 25 — 1624.
does not know prices tS — 1624-5.
believes the cost of manufacture has been de-
creased bv USSC. and that the public have
received the benefit 22—1566-7.
believes that prices are lower, because if trusts
had not controlled" the business they would
have been higher if made under competitive
conditions 2t — 1566.
^J J-^-L J.^J-' aJLi\.J.J2iiD OiJZjJCiXJ \_'VJXVr'WXlJi.J.lUl>i .
PEEKINS, GEORGE W.— Continued .
General — Continued .
believes prices are lower for goods manufactured
by truste than they would have been under
competitive conditions, because they would
have been higher, and he bases his judgment
on the fact that the frightful waste of com-
petitive methods under present conditions of
life would have forced the prices on the aver-
age, in a period of years, to a higher plane than
they have been 22 — 1566.
agrees with Gary's statement as constructive
policy except regulation of prices 22 — 1526.
does not believe in regulation of prices 22 — 1526.
says breaking u{> of Standard Oil Co. is notice to
other corporations 2f — 1527.
favors a business organization where each man is
a partner in enterprise who works in it g.^1574.
testified before Senate Judiciary Committee 16 — 1182-1205 .
mainly denied knowledge of various facts 16 — 1182.
is explaining how the exchange of USSC. bonds
for TCI. cleared panic, he said "the panic was
all a question of what people believed or what
people did not believe," and as the public
believed USSC. bonds were better security, this
belief was availed of to make the panic cease. . 16 — 1201.
Schley had conversations with, in regard to the
sale of TCI., but he would not like to state
what he said .?6— 1116.
states Schley told him that they could not meet
time loans, and that TCI. would be sold 20 — 1421.
this would break the price
Schley stated condition of his concern 25 — 1613.
does not remember whether he knew that Moore
& Schley had a majority of TCI. among their
assets 22—1524.
says panic was not started by bankers against
certain syndicate bankers 20 — 1524.
met Thorne at Union League Club and went
back to conference at Manhattan Hotel, and
this article was given out as coming from this
conference 25—1698.
nobody else but one had got the information
from Thorne could have given out the article;
to wit, the fact that Trust Co. of America had
112,000,000 in cash 25—1698.
nobody else could have known, and it must have
been 25—1698.
through one of the conferees; but Thorne says
he has no reason for thinking it was Perkins
rather than one of the conferees 25 — 1699.
introduced trust company presidents to each
other because they did not know each other,
although he knew them 15 — 1525.
gays on Saturday that Moore & Schley transac-
tion was discussed, and the trade was that if
the USSC. took the TCI. that would relieve
them, and if they took the stock out of the
banks, the trust companies were at the same
moment to furnish the Trust Co. of America
and the Lincoln Trust Co. with $15,000,000 on
T(7„^r,„t,riQ-,r TTini-nino' There were two trades
22—1523.
4772 UNITED STATES STEEL CORPOBATION.
PEBKINS, GEORGE W.— Continued.
General — Continued .
testifies that the three purposes coupled together
were the purpose of the trade of the TCI ZS — 1612.
did not know of Kessler's, Schley's, and Payne's
involvement in stock of TCI. having been
moving cause for Schley's difficulty and the
TCI. sale 25—1613.
says Payne did not go to Ledyard and suggest
that he should get Schley to sell TCI., but
says it was possible M— 1617-1618.
Payne did not suggest to Schley the sale of TCI.
to USSC. because he had arranged $7,000,000
or $8,000,000 of current stocks for current secu-
rities of Schley's which he was concerned
about (Perkins states) ^5— 1614.
says he was in^ position where he would have
known of anjr drive or assault against anybody
in panic 20—1489.
met Thorne Oct. 22, afternoon, when run on
Trust Co. of America started, and Thorne said
heavy withdrawals had been made and they
must have assistance, and being very much
alarmed and disturbed over his condition f 7 — 1500.
says Thorne asked for help, as withdrawals had
been so heavy he would need help next day
(Oct. 22) 21—1502.
says Thome kept coming to them for help on
Wednesday 27— 1509.
swears he did not testify that assent of president
or nonobjection was obtained to save Lincoln
Trust Co. and Trust Co. of America and Moore
& Schley, with understanding that these three
were to be taken care of ^S — 161.
subjects mentioned in Times article were not
told by Thorne to anyone but Perkins and
Davison 25—1689-1690.
article in Times states other facts, showing
knowledge of conditions by authors of it 2S — 168.
did not suggest to Thorne that he regarded the
Trust Co. of America as the chief sore point;
but Perkins and Davison were well pleased to
know the good shape in which it was 23 — 16.
gave article to press, although he did not write
it, and Thorne says it was a blunder and stu-
pidly to do it 25—16.
statement in Times Oct. 23, attributed to, by
Stone in letter 25 — 16.
saw reports on Oct. 22, evening, but thinks the
only statement made was that of Cortelyou . . . 20 — 1.
admits he saw newspaper men on night of bank-
ers' conference and every night during panicky
times 27—1503.
saw the New York Times next morning, but says
he does not recollect seeing the statement that
appeared in it. But had his attention directed
to it later 27—1504.
does not deny making statement in the Times that
Trust Co. of America was chief sore spot, and
admits that other papers made similar state-
ments 27—1504.
says Thorne made statement of
Trust Co. of America
UNITED STATES STEEL COBPOBATION. 4773
PEBKINS, GEOEGE W.— Continued.
Gekebal — Continued.
states he could not remember what statements
he made to reporters, when asked if he made
statement that Trust Co. of America was sore
spot 2.?— 1506.
states that he does not remember hearing read the
statement by Boynton at Lotos Club ^1 — 1506.
letter of Boynton stating that article emanated
from Perkins in re Trust Co. of America 2S — 1700.
referred to Georgia Central By. in connection
with the Trust Co. of America busiaess which
was not strictly trust company business 22 — 1535.
denies making statement to Melville E. Stone,
officer of Associated Press, that he referred to
Trust Co. of America and justified it because
conditions were so strained that if public at-
tention had not been centered on the Knicker-
bocker Trust Co. of America every bank would
have been involved 21 — 1508.
says runs began on Trust Co. of America, Oct. 23,
the next day after the statement in the Times . . 21 — 1509.
says runs began on many other institutions on
Oct. 23 f i— 1509.
did not know that Trust Co. of America had
$500,000 TCI. on Oct. 22 or 23, and not until
Nov. 1 20—1472-3.
says Trust Co. of America and Lincoln Trust Co.
were not saved by taking TCI. stock, nor were
they in trouble through it 22 — 1523.
TCI. purchase -first known to on Oct. 24-25, or
Nov. 1 22— 1H9.
but it had been offered to TJSSC. a year before
and refused 22 — 1550.
PERRY, MARTIN J.—
of Providence, to whom Boynton read statement that
Perkins made about Trust Co. of America, Oct. 13,
1907
PHIIUPS, WILLIAM B.—
was chief chemist of TCI. in early days IS — 983.
is considered a very competent metallurgist i5-^984.
prepared report for Geological Survey of cost of pig
iron i5— 984-5.
PHILLIPS—
of New York Times read Perkins' statement in Lotos
Club 25—1700.
PRICE, C. S.—
president Cambria Steel Co. believes in maintaining
prices S — ^275.
REA—
vice president Penn. R. R. and director 6 — 330.
REEVES, DAVID—
president Phoenix Iron Co., spoke at Gary dinner
Jan. 11, 1911 (p. 45), in favor of wise policy in oper-
„+,•„„ v,„i„„,„„„„„;f„ 5—278.
4774 UNITED STATES STEEL COEPOEATION.
BICHMOND, R. G.—
manager and sales manager of the Waterbury Co., New.
York City, stated that his company belonged in
1905 and 1906 to the Wire Rope Association 10—562.
with Waterbury Co. 8 or 9 years 10 — 570.
BOBERTS, JR., PERCIVAL—
is an expert on all departments of manufacture of
iron and steel 3 — 107.
director USSC. 1901, 1902, and 1909 to date 6—329.
elected to Finance Committee USSC. Fin. Com.,
Nov. 30, 1909.
director USSC, Penn. R. R., elected October, 1907,
Philadelphia.; Nat. Bk., Land Title & Trust Co.,
Philadelphia; American Society Civil Engineers;
Penn. & N. Y. Tunnel & Trust So.; Columbia &
Clearfield R. R.; N. Y. Connecting R. R 6—314.
and Union Improvement Co. (Anthracite Coal Co.). . . 6 — 317.
was director American Bridge Co. and president 6 — 316.
was vice president of Pencoyd Iron Works (1894) 6 — 317.
does not believe in transportation company owning
interest in commodities it carries 6 — 331.
says Penn. R. R. considers prosperity of man it buys
from 6—338.
promises figures as to prices of brick. . 6 — 356.
ROCKEFELLER, J. D.—
resigned Mar. 1, 1910, from directors SO — 1490.
Rockefeller property purchase paid for in notes;
$10,000,000 payable 1902 USSC. Ex. Com. Min.,
ilar. 4, 1902.
$8,500,000 given to by Pittsburgh SSCO. for purchase
of Bessemer Fleet USSC. Fin. Com.,
Nov. 18, 1902.
and others and H. H. Rogers beingownersof majority
of the securities of the Troy Steel Products Co.
owning Troy Steel Plant USS(.'. Dir.,
Jan. 6, 1903.
ROE, JAMES PETER—
general supt. of Gla.'igow Iron Co 1^ — 814.
ROOSEVELT, THEODORE—
congratulated Secretary of Treasury and Jlorgan and
Rockefeller on admirable way they had handled
panic on Oct. 26 19—1390.
\-i8ited by Gary and Frick, etc 3 — 137-9.
correspondence in re USSC 3 — 1 38-141.
stated he was glad USSC. percentage had decreased . . S — 139.
letter to Bonaparte re TCI. purchase 5-141.
Secretary Root told President he had no right to
approve the sale of the TCI 3 — 165.
letter to Bonaparte, Gary examined as to statements in
letter to Attorney General re TCI., contradicted by
Schley " 4_167-8.
Gary has no recollection about clause in Roosevelt's
letter to effect that acquisition of TCI. would be
used as a handle for attacks upon them on the
ground that they are striving to get a monopoly 4 — 168.
UNITED STATES STEEL COEPOEATIOK. 4775
ROOSEVELT, THEODORE— Continued.
Gary wanted Roosevelt to understand that Moore &
Schley (although not naming them at the time)
were m danger of failure, if Tennessee CI&RR.CO.
stock was not taken over; and Gary proposed to
take over TCI. stock by an exchange of 5 per cent
sinking-fund bonds of tJSSC -J— 169.
statement and letter 79^1369-73.
says Gary and Frick did not name any trust companys 19 — 1373 .
had impression from Gary and Frick that one company
was overloaded with TCI. stock i9— 1374.
was not told USSC. preferred TCI. stock in loaning to
stock broker 19 — 1374-5
was not told that nine-tenths of TCI. was locked up,
on account of its intrinsic value, that it had been
pegged on street, and only 30 per cent of it wao
among the industrials supported by current securi-
ties, that no bank was objecting to the stock, and
that the sum total borrowed on it by the man in dis-
tress was $5,000,000 or $6,000,000 79—1375.
was told by bankers before Gary and Frick visit that
TCI. stock should have been substituted for some
other stock J9— 1375.
was not told that the USSC. second-mortgage bonds
had no tangible property behind them, while TCI.
had between $150,000,000 or $250,000,000 worth of
property i9— 1377.
was not told by Gary and Frick that no bank or stock-
broker ever intimated that the absorption of TCI.
was necessary for its salvation 19 — 137S .
was not told that only Schley and Kessler were owners
of small amount of TCI . which they were compelled
to sell 79—1378-9.
was told the control of USSC. would be increased 4 or
5 per cent 79—1379.
understood they were buying the TCI. plant, but did
not go into the question of the property they were
buying 79—1379.
could not eay what his decision would have been if
he had been told that the USSC. would have in-
creased its output 80 or 90 or to 60 per cent from
Ashland to El Paso 79—1379-80.
was not told by Herbert Knox Smith as to position of
USSC. in ore and railroads, nor by any officer. . . . 79 — 1381-2.
had received information before Gary and Frick came
of a trust, so that would fail 79—1382.
understood if he said that no injunction should issue
against USSC. it would not be done, and the an-
nouncement of his position as President would have
been conclusive against it 79 — 13S7.
if he had spoken against the consolidation, it would
have ended at once 79 — 1387.
they (Gary and Frick) came to him as President 79 — 1387 .
understood there was a specific assault upon a par-
ticular banker or particular corporation being made
at the time in New York 79—1388.
two big trust companies were named to him, and one
of them in connection with Moore & Schley, and he
did not know whether Gary and Frick referred to
ifoore & Schley or to one of these trust companies . . 79 — 13SS-0.
' "" ncontrolled
7,9—1389.
— y 79—1389.
4776 UNITED STATES STEEL CORPORATION.
BYAN, T. F.—
elected director ASWCO ASWCO. Stockhldrs. Min.
Feb. 19, 1901.
SCHLEY, GRANT B.—
the firm of Moore & Schley in business since 1885. . . 16 — 1041.
was syndicate^manager for^TCI . holders 16 — 1114.
was director TCI i6— 1114.
waa director of^Republic^Iron & Steel Co 16 — 1114.
testified^before^Senate Judiciary Committee 16 — 1205-24.
promised to find out from record if any bank, and
what bank or banks, demanded the withdrawal of
TCI. fromanyloan just prior to or during the panic. 16 — 1065.
telephoned Hanna on Sunday preceding the sale of
USSC. that banks had asked for subHtitution of
other collateral for TCI 75—854.
Hanna only knew one bank that Schley dealt with,
the Chase National IS — 854-5.
none of the Morgan banks requested him to take up
TCI. loans 76—1101.
there was nothing in the transaction anywhere that
led Schley to think that the USSO. was seeking to
get hold of the TCI i6— 1101 .
thinks he had loans in Chicago, Philadelphia, Boston,
and New York, on which he had put up some TCI . . 16 — 1100.
when asked whether he had testified to Mr. Littleton
that none of the banks were demanding of his firm
or of him that he take up the TCI. and give other
security, Schley replied, "That was a very general
demand upon us" from different banks generally.
but he could not designate any bank 16 — 1100.
no bank ever called Moore & Schley's loans, or il any
waa called Schley paid it, and there was no time
when they did not meet their payments 16 — 1094.
exchanged industrials not usable for collaleral for cur-
rent storks belonging to Col. Payne, to the amount
of about $5,000,000 to $8,000,000 76— 10r>8-9.
said he had about $5,000,000 or $6,000,000 TCI. on
deposit as collateral S — 130-1 .
but refused loan from USS(.'. for $5,000,000 or
$6,000,000 and wanted to sell stock 5—131 .
testified (p. 72, Senate Judiciary Com.) on TCI. if he
had $5,000,000 or $6,000,000 he would have beon
happy, but Gary says Ledyard would not accept
loan 4—193.
was prevented by TCI. syndicate agreement from sell-
ing his stock IS — 1109.
banks refused to renew loam 16 — 1109-10.
spoke to Perkins several times about selling TCI., but
he would not like to state what he said 16 — lllG.
in conference with Perkins had object of stating the
condition of Moore & Schley, as well as referring to
the sale of TCI 76— 1108-9.
saw Perkins Saturday afternoon before sale of TCI.,
and told him the value of the property to the USS(^. ,
the amount of ore as estimated, the amount of coal,
coking coal, dolomite, etc 76 — 1094.
Perkins swears Schley said he could not meet time
loans and that TCI. would be sold and price would
break «0— 1421 .
was trving to save himself from I'liliin
toUSSC
UNITED STATES STEEL. COEPOEATION. 4777
SCHLEY, GEANT B.— Continued.
the only relief was Perkins or Morgan & Co 20 — 1423 .
says Gates did not get back until after the TCI. sales
was negotiated, although before it was concluded . . IS — 1223
went to Ledyard and they went to USSC. to negotiate
purchase of TCI is — 827.
Payne did not suggest to Ledyard to get Schley to
sell TCI. (Perkins states), but says it is possible 25 — 1617-18.
at the time of loan USSC. of $1,200,000 bonds, he had
no contemplation of selling the property; but he
states several times that Col. Payne advised the
selling of the property to USSC. " for a month before
it was sold. " 16 — 1092.
presented to Gary the advantages of TCI. in southern
market over all other concerns 16 — 1114.
■did not see Morgan 16 — 1093.
in panic the talk was as to "which was the first to be
saved" as between Moore & Schley and Trust Co.
of America 16 — 1097.
""it was natural to consider that when they (USSC.)
took it (TCI.) they wanted the control" 16—1215.
-was not told until afterwards about consulting Presi-
dent 76—1224.
•did not know that Gary and Frick were going to
Washington 16—1092.
can not state that in his opinion the failure of Moore &
Schley was prevented by the sale of TCI. stock. . . 16 — 1098.
when asked if Moore & Schley were facing failure he
answered, "The situation was serious" and "No
one could tell what to-morrow would bring forth.
Preparations every day were made properly for that
day up to that time, " but he stated that the same
was true of a great many financial institutions 16 — 1094-5.
Roosevelt's letter of Nov. 4, 1907, was read, stating in
part "there is a certain business firm * * *
which will undoubtedly fail this week if help is not
given, " and Schley states he did not say to Gary or
Frick that the firm would fail or be liable to fail 16 — 1095
Roosevelt's letter stating that among its (the firm's)
assets are a majority of the securities of the Tennes-
see Coal Co., and Schley says the assets of the firm
did not contain a majority, "but it approximated
it" 76—1095-6.
Roosevelt's letter stating that application had been
urgently made to the USSC. to purchase this stock
as the only means of avoiding a failure ; and Schley
states that he did not make such application 16 — 1096.
Roosevelt's letter stating that Gary and Frick did not
care to purchase the TCI. stock; Schley says they
did not say to him that their object in negotiatii^
for the purchase of the stock wfis wholly to save
Moore & Schley; and there was not any pretense to
Schley that the negotiations were for the sole pur-
pose of preventing the failure of Moore & Schley. . 16 — 1096.
SCHWAB, CHARLES M.—
General —
president Bethlehem Steel Co 75—1275.
was president of Carnegie Co. at formation of
USSC. and subsequently became president of
"— 7S— 1275.
ar, with Car-
i— 32.
4778 UNITED STATES STEEL CORPORATION.
SCHWAB, CHABLES M.— Continued.
General — Continued.
testified before Ways and Means Committee that
he had extensive ore land in Cuba S — 107.
resigned June 26, 1904, from USSC USSC. Fin. Com.
June 26, 1904.'
attended Brussels conference 18 — 1320.
suggested at dinner in 1899 by J. Edgar Simmons
and Charles Stewart Smith the advantages of
combiaation through decreased cost 18 — 1276.
promises to furnish cost sheet showing operation
and constituent elements in blast-fiunace
operation 18 — 1277.
planned a seamless tube works at Conneaut iS— 1312.
drew plans tor new Carnegie tube works at Con-
neaut i5— 1311.
called to see J. P. Morgan and J. W. Gates about
stopping Carnegie building tube works and
railroad 1 — 30.
said Carnegie would agree to anything he would
^—32.
Morgan asked me (Schwab) if Carnegie wanted to
sell his interests in the Federal and other com-
panies. I approached Carnegie and Carnegie
sold T. H., vol.2, 1641-2.
says Morgan never allowed his interests in other
concerns to affect his handling of USSC 19 — 1401.
60STS, PRICES, VALUES, ETC. —
letter to Frick, May 15, 1899, giving cost of rails
at less than $12, etc T. H., vol. 2, p. 1628.
letter of May 15, 1899, re Carnegie Co., and testi-
mony in reference to the same before Ways and
Means Committee on Dec. 15, 1908 18—1322.
letter was written at Frick's solicitation at time
when he was anxious to dispose of the Carnegie
Co. and waa in optimistic vein 18 — 1231-2.
letter was written in optimistic vein, but there
was no statement made which was not abso-
lutely true :Z5— 1340.
in letter rails were estimated at $12, and that waa
upon the cost of ore that then existed, but since
that time there has been an increase in the
price of ore; and companies that bought the ore
then have made a great profit. Therefore, the
profit is greater than $6.50, which is the differ-
ence between the cost of $21.50 and the selling
priceof $28, when the profit on ore is considered. 18 — 1341.
letter to Frick May 15, 1899, as to cost of rails at
$12 and profit at price of $16, and profits made
by Carnegie plants of $3,600,000 J5— 1309.
refused to state to whom the Carnegie Co. was to
be sold in May 1.5, 1899, except it was not the
USSC. 'a connections 18 — 1344.
prices of pig iron (1908), $14; cost of conversion
into rails (1908), $7.50 T. H., vol. 2, p. 1634 .
Carnegie says $7.50 cost of conversion into steel is
too high and thought it was a mistake T. H., vol. 2, p. 1908.
gave figures on Bessemer steel at tariff hearings;
while his company makes open-hearth rails... T. H., vol. 2, p. 1652,
1 fiQ.t; 1 fifii
"Schwab told me (Carnegie) that
speaking for any steel mill; that 1 ^
- formation (of cost of steel rails at ■'^''- — !^"= —
from a private producer of ore in P ^^
UNITED STATES STEEL CORPOEATION. 4779
SCHWAB, CHAKLES M.— Continued.
Costs, pbices, values, etc. — Continued.
Schwab calculated price of other steel products
upon price of rails T. H., vol. 2, pp. 1648-
49, 1656-1782.
estimated USSC. ore at $1 a ton two or three
years before 1908 T. H., vol. 2, p. 1762.
always held the price of rails is too low 19 — 1403.
attended meetings pools for Carnegie Co. before
USSC..." 2.^-1745.
might give the name of the treasurer to whom
the checks were drawn for fines for violating
pool agreements 7 — 370.
structural steel has had uniform price through-
out United States for some years T. H., vol. 2, p. 1668.
Schwab would not vary from $28 price of steel
rails, 10 cents a ton for fear of precipitating a
steel war and running without any profit (see
combinations) T. H., vol. 2, pp. 1650-51.
the same is true of all steel lines such as steel
plates, etc T. H., vol. 2, p. 1676.
the steel companies own all the northwestern ore. T. H., vol. 2, pp. 1675-7.
these steel companies by common consent sell
rails and structural steel at the same price T. H., vol. 2, 1675-7.
this condition of prices " could be in the control
of the Steel Corporation" T. H., vol. 2, p. 1677.
rails price was fixed at $28 by agreement of all
rail manufacturers in country 1895-6; and
again in 1897 or 1898 and has not changed
since T. H., vol. 2, pp. 1650,
1664, 1675.
price maintained regardless of cost of production,
to have steady price T. H., vol. 2, p. 1665.
Schwab, in the tariff hearings, testified that
all parties are selling rails (standard) at the
same price. And "if I were to vary that 10
cents a ton to-day, I would precipitate a steel
war, to use such a word or expression, that
would result in running my works without a
profit. Everybody, by tacit and mutual un-
derstanding, feels the same thing. about that.
I would not vary the price of my rails under
any circumstances, not if I knew it was to get
100,000 tons in orders, for the reason that my
competitor next door would put the price
down to $1 a ton, or half a dollar a ton even,
and we would be in a position where we would
be running without any profit at all T. H., vol. 2, pp. 1650-51.
SCOTT, I. M.—
president of La Belle Co., spoke at Gary dinner 5—277.
SHOEMAKER, C. B.—
president of Glasgow Iron Co IS — 805.
STACKHOTTSE, POWELL—
president of Cambria Co.; was president of Struc-
tural Association 17 — 13.
STODDABD, H. G.—
savs Beals & Co. represent the Trenton Iron Co. in
— I Book of the
:?0— 574.
4780 UNITED STATES STEEL. CORPOEATION.
STONE, E. E.—
to purchase spelter, copper, and lead for lUinoia
Steel Co His. St. Co. Dir.,
Mar. 16, 1908.
STONE, MELVILLE E.—
officer of Associated Press to whom Perkins denies
making statement that he jiiatified referring to
Trust Co. of America, because otherwise every
bank would have been involved il — 1508.
letter of Nov. 18, 1907, stating that Perkins' statement .
in Times of Oct. 23 was so prejudicial they did not
send it out, but that it was not made in malice — iS — 1687.
Thome went to him when nm commenced and in-
sisted Trust Co. of America was solvent SS — 1686.
STUBGIS, HON. GEORGE C. (OP MOBGANTOWN,
VA.)—
loan to, disapproved USSC. Fin. Com.,
Julys, 1908.
SWANK, J. M.—
$7,000 contribution to American Iron & Steel Associa-
tion acknowledged and $2,000 additional requested. USSC. Fin. Com.,
Sept. 28, 1909.
$9,000 subscription to American Iron & Steel Associa-
tion USSC. Fin. Com.,
Sept. 28, 1909.
letter about protection and prosperity ^0 — 1429-30.
auditor USSC. says they contributed $3,000 to Pro-
tection and Prosperity 20 — 1431.
TEMPLE, W. C—
was commissioner of Plate Association, Structural
Steel Association, and The Cold Rolled Shafting
Association, in Pittsburgh, Pa., with salary of
$12,000, or $4,000 for each association 25—1710.
identified Plate Agreement A 25—1703-10.
had intimate knowledge of the concerns in the steel
business ^4 — 1715.
concerns did not know about the business of the others
and Temple did know as commissioner 24 — 1715.
complaints were numerous of violating agreements in
early days 24—1716.
for two years after dissolution of pool agreements in
1904 was intermediary for interchange of informa-
tion 24—1732.
reports were made of shipments, sales, and tonnage,
and prices were discussed 24 — ^1732-3.
meetings were held after the dissolution of pool agree-
ments 24—1733.
THATCHEE, THOMAS—
was counsel for TCICO 75—908.
was personal counsel to Schley IS — 909.
of Simpson, Thatcher & Bamum 5 — 131.
would say that an assignment for the benefit of credi-
tors had been prepared for Moore & Schley or for
Schley (Gary says) 5—131.
THAYEB, N.—
director Penn. R. R. and vice president 6 — 330.
UNITED STATES STEEL COEPOEATION. 4781
THOBNE, OAKLEIGH—
President Trust Co. of America 25 — 1652.
was director of night and day bank 25 — 1653.
examined by judiciary committee 1173.
was in TCI. syndicate i 15.
subscribed for 12,500 TCI., but sold 7,500 and held
5>000 i6— 1175-23, 1654;
■If* 1 1 ijC
had 12,500 TCI. and paid for it and took it away from
Moore & Schley ^g I654.
distributed 7,000 shares to persons who bought it and
went into syndicate 25^1654.
he owed Moore & Schley nothing, and they owed him
nothing 25—1654.
the stock had been delivered and paid for 25 — 1654.
did not borrow a dollar on the TCI. stock he had 25 — 1657.
made statement to bankers of condition of Trust Co.
of America 2i— 1505.
toldPerkins that Trust Co. of America had $12,000,000,
as stated in Times article, and had not told anyone
else, and pledge made if statement of company's
condition was true more money would be given. . . US — 1639-90.
did not teU anybody but Perkins and Davison that
comniittee was to look over accounts of Trust Co. of
America, as stated in Times article 25 — 1690.
guarantees of cash for Trust Co. of America not re-
ferred to except statement that if affairs of Trust Co.
of America were looked into and found correct the
committee would help the Trust Co., as mentioned
in Times article 25 — 1690.
guaranteed Union Trust loan to Trust Co. of America
and put up $2,000,000 of his own securities 25—1679-81
was called to Union League Club and was not first told
he would be helped, before he needed help iS — 1698.
«aw Davison and Perkins at the Union League Club on
night of Oct. 22, and they were pleased with condi-
tion of affairs in Trust Co. of America 25 — 1660-1.
asked for help, Perkins savs, as withdrawals had
been so heavy Oct. 22 ." 2i— 1502.
Perkins says, stated he had heavy withdrawals and
must have assistance and was very much alarmed
and disturbed 27—1501.
kept coming to Morgan & Co. for help on Wednesday. 21 — 1509.
his bank had about 400,000 TCI. at Nov. 2, 1907. . . . i— 129.
Thorne discussed Times article of Oct. 23 attributed
to Perkins 25—1685.
took up as an individual the question of a suit for
damages done by Times article Oct. 23 attributed
to Perkins 25-1686 .
received a letter commenting upon this article 25 — 1686.
produces letter of Boynton that statement in Times
emanated from Perkins 25 — 1699.
question of suing was before they got $15,000,000 when
they were hanging in the balance 25^1698.
believes Perkins gave out the statement whether he
wrote it or not, and if some one else wrote it and
Perkins gave it out, it must have come from a very
high source 25—1699.
L-i; ■D„.i,,'„„ „„,ra rmt atafoiTifint from state-
25—1688.
4782 UNITED STATES STEEL COKPOEATION".
THOENE, OAKLEIGH— Continued.
acquits Perkins of all except a blunder and stiipidity
but does not know- that he wrote the article,
although he gave it to the press 25 — 168S.
says nobody else but one who had the information
from him could have given out the article, to wit,
the fact that Trust Co. of America had 112,000,000
cash; nobody else could have known the facts, and
it must have been through one of the conferees
at the Manhattan Hotel, but has no reason for
thinking it was Perkins more than anA- one else of
the conferees ". 25—1698.
is of the opinion that if there had not been any news-
paper articles such as that of Oct. 23 there would
not have been any runs 25 — 1701.
knew of failure of Knickerbocker Co. but did not
know of the gravity of the situation on the stock
exchange or of Moore & Srhle^' or clearing house
banks or in Brooklyn ' 25—1697.
had not seen the Sun article ^S — 1698.
did not know that Gary and Frick and Roosevelt
were considering helping the Trust Co. of America
nor that if the USSC. took TCI. the Trust Co. of
America would be helped ?S — 1694.
had heard no discussion of any Trust Co.'s stability
until night before Knickerbocker closed and then
in relation to the Carnegie Co 25 — 1693.
delivered check for .?666,000 withdrawals on October
to Morgan 25—1701.
saya if it had not been for Morgan Trust Co. of America
would have been closed S3 — 1701.
did not know anything about the agreement that if
USSC. bought TCI. the bankers would see Trust
Co. of America through 25—1688.
Thorne said to own a controlling interest in Georgia
Central Ry 2^—1505.
TOPPING, JOHN A —
is chairman of Republic Iron A Steel Co., has been
in iron business since 1877 5 — 271;
i7— 1225.
was president of the American Sheet A Tinplate Co.
and also chairman of the TCI. at the time of the
sale i7— 1226.
was chairman of the board of directors of the Repub-
lic and chairman of the board of directors of the
TCI. at the time of the absorption i7— 1226.
ended connection with USSC. in 1905 77—1267-8.
had been with USSC. five years i7— 1268.
was first vice president of the American Sheet Steel
Co. and became president of the Consolidated
Sheet Steel & Tinplate Co 72—1268.
spoke at Gary dinner (p. 23) 5 — 271.
first learned that the project was to sell the TCI.
stock on Monday morning, 10 a, m 17 — 1264.
had no reason as official of company why property
should be sold, but as Schley suggested, there wer«
reasons from Schley's viewpoint whv he should
?ell, Topping stated the fact? to Ledya'rd 77—1239-40.
did not desire Schley to sell stock 77 — 1239.
went with Schley to Led yard as to purchase of TCI. . 77—1238.
UNITED STATES STEEL OORPOBATION. 4783
TOPPING, JOHN A.— Continued.
stated the mineral fee ownereliip; export possibilities
and cheap navigation to Mobile and future value
in Southern market, etc., to Ledyard 17~12S9.
spoke to Ledyard merely to state facts as to TCI. for
Schley ;7— 1265.
did not go to Ledyard about sale of TCI. representing
TCI. Co. but was friend of Schley .Z7— 1239. ;
did not attend the luncheon by Gary after the Re-
public Co. cut prices 77-^1265.
did not know of luncheon to which he was not invited
at. May 4 .' 77—1265.
saw announcement of USSC. prices at luncheon after
Republic cut prices ^ 72 — 1266.
TOWNSEND, BUBDETTE D.—
report in International Harvester Co. is true copy
certificate by Wickersham gs — 1643.
VAN ORMER, J. R.—
secretary to A. F. Huston got back from Kauffman
the proofs and copies of the agreement between the
Lukens Co., CSCO., IlUnois Steel Co., and Ameri-
can Steel & Wire Co., et al 10 — 562.
stated to Kauifman that Huston had made a mistake
in having Lukens pooling agreement printed, and
that the then president of the Illinois Steel Co. had
said that it would put him in jail in Ilhnois if that
got out 70—552.
told Kauffman that the president of the Illinois Steel
Co. said that Huston should have kept the agree-
ment personal to himself, and should have had a
tjrpewriter do it, and that he should have stayed
with the typewriter while he was doing it 70—652.
denies ICauffman's statement about the president of
the Illinois Steel Co. being imprisoned, and doubts
whether he went to Kauffman to get back the copies
of the Steel Plate Association agreement 10 — 576.
never saw a copy of agreement B, referred to in steel-
plate agreement 70 — 619.
VON CAMP—
proposition referred to in telegram from Alfred Clif-
ford to Max Pam, dated Apr. 24, 1901, relating to
purchase of judgment, redemption, etc., referred
to Edenbom with power USSC. Ex. Com. ;
Apr. 25, 1901.
WALKER—
lands— he accepts offer of $2,000,000 USSC. Fin. Com. ;
Dec. 13, 1910.
WALTERS, HENRY—
director USSC. ; elected in place of J. D. Rockefeller,
Mar. 1, 1910 6-316.
WHITNEY, GEORGE I.—
had interest in Hostetter Coke Co 4 — 154.
commenced suit in reference to his stock 4 — 154.
borrowed money of Union Trust Co., in which Frick
and Mellen interested, and pledged stock, which
went down from $1,000 to $2,00, and was acquired
by USSC ^—164-5.
oke Co .4—160.
4784 UNITED STATES STEEL, COEPORATION.
WHITNEY, GEOBGE I.— Continued.
was disclosed a bankrupt a year ago 4 — 160.
HCFCCO. boi^t 15,000 shares Hostetter-Connells-
■ville Coke Co., at $120 HCFCCO. stockholders;
Min.;
Jan. 14, 1908.
one-half capital stock of Hostetter-Connellsville Coal
Co. bought for $10,000, the capital stock being
$1,500,000. There was a mortgage of $1,500,000,
but no bonds were to be paid until the end of 50
years, unless out of certain number of diares to be
put in escrow by Whitney to give control to Frick
Co. in case of death of Whitney or sale of Ms shares! . HCFCCO.|Dir. ;
Oct. 24, 1880.
WICKEBSHAM, GEOBOE W.— ^
states that the reason the suit against the Interna-
tional Harvester Co. was not proceeded with was
because the tobacco and Stand-ard Oil cases in-
volved very many of the questions 12 — 821.
examined copy of report of Burdette D. Townsend in
regard to International Harvester Co.
WILLIAMS, CLAEK—
was in touch night and day with panic situation 4 — 189.
bank examiner examines semiannually and oftener,
as they see fit 25—1691.
never criticized securitiesof Trust Co. of America 25 — 1691.
WITHEBBEE, F. S. —
president of an iron company spoke at Grary dinner in
favor of maintaining prices 5 — 278.
WOODALL, CABLILE P.—
sole proprietor of Claridge & Woodall, ship chandlers,
sell wire rope 10 — 604-12.
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