Document yqnnjMaa3b3V06MZ47OG0LeX

-* * * * .-,7S* < if * * .1 i s X * 1 FILE NAME: US Steel (USS) DATE: 1924-1998 DOC#: USS023 DOCUMENT DESCRIPTION: Moody's Industrial Journal Entries * m,- $ .it t #. \ qg'ftk .* % * * S- * * ." \ \ a _ a $ , 1998 VOL. 2 J-Z COVERING NEW YORK & AMERICAN STOCK EXCHANGES MOODY'S INDUSTRIAL MANUAL VICKI PEARTHREE RAEBURN, P ublisher HOWARD G. KIEDAISCH, M anaging D irecto r CAROL SURDOVAL, D ire c to r-- G lobal F undam ental D ata JOHN IERACI, D irecto r--P rin t P rodu cts Editorial Staff WAYNE ARNOLD MARYROSE CAROSIA BRIAN COX SAMANTHA HASTINGS JUNE HOANG JUDY PHAM FELICIA ROBINSON CHARLOT VOLNY JOANNE WALLACE THOMAS M. WECERA Financial Information Services Publisher of Moody's Business and Financial Information A division of Financial Communications Company, Inc. SEE FOLLOWING PAGE FOR COMPLETE U ST OF OFFICES Copyright 1998 by FINANCIAL COM M UNICATIONS CO., INC. All rights reserved. MOODY'S INDUSTRIAL MANUAL 6803 Property, pit & equipment, n e t ........ Total assets ................ Liabilities: Short-term oblig.......... Payables & accrued exps Income taxes.............. Total curr liabil............ Long-term debt............ Postretirement benefits other than pensions . . Other liabilities............ Total liabilities............ Capital stock.............. Additional paid-in capital . .................. Retained earnings........ Total.......................... Less cost of shares in treas........................ Total stkhlders e q ........ Total liabilities & stkhlders eq ............ LIFO; FIFO 326,709 826.714 10,000 119,345 37,174 166,519 100,000 73,868 48,396 388,783 103.307 474,661 528,518 1,106,486 668,555 437,931 826.714 300,885 807.392 150.000 113,635 42,918 306,553 100.000 70,209 48,610 525,372 102,077 414,274 388,505 904,856 622.836 282,020 807.392 Long Term Debt: Dec. 31, 1997, 5100,000.000 com prised of: (1) $ 100,000,000 long term debt. Line of Credit: In 1996, the Company entered into two revolving credit agreements totaling $350 million with several banks, he terms of the agreements provide for a five-year revolving credit facility in the amount of S262.5 million, which expires in November 2001, and a 364-day revolving credit facility, renewed in November 1997 in the amount of $87.5 million, which expires in November 1998. The Company may borrow funds and elect to pay interest under the " Base Rate," " Competi tive Bid" or " Eurodollar" interest rate provisions. Principal repayments are optional during the revolving credit periods. The agreements require facility fees which are not significant, as well as maintenance of certain financial ratios. There were no borrowings under these facilities in 1997 and 1996. At December 31, 1997, the Company had $110 mil lion outstanding under commercial paper borrowings, of which $100 million was classified as long-term debt. The Company's revolving credit agreements support these borrowings which are intended to be refinanced on a long-term basis, either through continued commercial paper borrowings or its revolving credit facilities. Com mercial paper borrowings at December 31, 1997 have a weighted-average interest rate of 5.8 percent. At Decem ber 31, 1996, the Company had $250 million outstand ing under commercial paper borrowings, of which $100 million was classified as long-term debt. Commercial paper borrowings at December 31, 1996, had a weighted-average interest rate of 5.7 percent. Capital Stock: 1. UST, Inc. common AUTH - 600,000,000 Shs. OUTSTG - Dec. 31, 1997, 204,154.736 Shs.; par S 0.5 TREASURY SHARES - 2.182,500 Shs. STOCK SPLITS - Par changed from $100 to no par in Mar.. 1922, by 4-for-1 split; no par shares split 4-for-1 in Mar., 1938; par changed from no par to SI par May 1, 1968 by 2-for-l split; par changed from $1 to $0.50 Mav 1. 1972 by 2-for-l split. VOTING RIGHTS - Entitled to one vote per share. No mortgage or encumbrance of any kind may be placed on property as a prior lien to the preferred, without assent of two- thirds of each class of stockholders. DIVIDENDS PAID - Paid by United States Tobacco Co.: ($100 par shares) 19P.............$5.00 1913...... .$10.00 1916......... ....26.00 1917......... ...22.00 01919-21......10.00 1922.............5.50 (No par shares after 4 for 1 split) 1922......... .....1.50 01923-28.. ....3.00 1930......... .... 4.00 1931......... ....4.30 1934......... .... 9.70 1935......... ....7.25 1937......... .... 8.25 1938......... ....1.25 01914-15. ..$12.00 01918..... .....5.00 01929..... .... 3.25 1932-33.... .....4.40 1936........ .... 10.75 (No par shares after 4 for 1 split) 1938......... .... 1.35 1939......... ....1.76 1941......... .... 1.50 1942......... ....1.32 1944-47.... .... 1.20 1948-50........1.35 1959-61.........1.35 1962-63........1.40 1966......... .... 1.60 1967......... ....1.70 ($1 par shares) 1968......... .. 0.72% 1969......... ..1.02% 1971......... .....1.20 1972......... ....0.31 ($0.50 par shares) 1972......... .. 0.46% 1973......... ....0.70 1975......... .... 0.90 1976......... ....1.10 1978......... .... 1.60 1979......... ....1.84 1981......... .... 2.40 1982......... ....2.80 1940........ .... 1.96 1943........ .... 1.30 1951-58.........1.20 1964-65.... 1 50 1968........ .....0.45 1970........ ...1.12% 1974........ .... 0.79 1977........ .... 1.40 1980........ .....2.08 198.3........ ....... 0 ($0.50 par shares after 200% stk. div.) 1983......... .... 1.16 1984......... ....1.44 1985........ .... 1.72 1986......... .... 1.96 1987......... ....... m (S0.50 par shares after 100% stk. div.) 1987......... .... 0.30 Paid by UST Inc.: 1987......... .... 0.90 1988......... ... 148 1989 0 ($0.50 par shares after 100% stk. div.) 1989......... .... 0.92 1990......... ....1.10 1991........ .... 1.32 1992......... ....... a (50.50 par shares after 100% stk. div.) 1992......... .... 0.80 1993......... .... 0 96 1994 1 12 1995......... .... 1.30 1996......... ....1.48 1997........ .....1.62 01998............. 81 Also paid stock dividends: 1914. 20%; 1915, 10%; 1918, 20%; 1921, 20%; 1923, 20%; 1929, 20%; 1983, 200%; 1987, 100%; 1989, 100%; 1992, 100%. 0ToJun. 15 STOCK OPTION PLANS - A summary of stock option transactions is as follows: Shares....................................................... 1997 Outstg., beg of year...................................... 15,782,600 Options granted.......................................... 1,861,600 Options exercised........................................ Options forfeited ........................................ Outstg., end of year...................................... (2,459,500) (297,900) 14,886,800 TRANSFER AND DIVIDEND DISBURSING AGENT & REGISTRAR - The First National Bank of Boston, Boston, Mass. SECONDARY EXCHANGES - Also listed on Pacific Stock Exchange. PRICE RANGE- 1997 1996 1995 1994 1993 High .................... 36^16 35% 36 31% 32% Low...................... 25% 28V4 26% 23% 24% Adj. for 100% stk. div. in year. USX CORP. History: Incorporated in Delaware Sept. 13, 1965 as U.S. Steel Co., a subsidiary of United States Steel Corp. On Jan. 1, 1966 merged United States Steel Corp. and changed name to United States Steel Corp. Present name adopted on July 8, 1986. Predecessor company was incorporated in New Jersey Feb. 25, 1901. For acquisitions, etc. prior to 1976 see Moody's 1976 Industrial Manual. On Jan. 7, 1982, U.S. Steel acquired Marathon Oil Company for $5,935,000,000 in cash and notes. In 1984, Marathon Oil Co. purchased all common shs. of Husky Oil Co. for $488,000,000 in cash. On Feb. 11, 1986, a subsidiary of Co. merged with Texas Oil & Gas Corp. Co. issued 0.6333 com. sh. for each Texas Oil & Gas Corp. com. sh. issued 133,000,000 com. shs. In 1986. sold Aristech Chemical Corp., U.S. Steel Supply division and a 50% interest in the Pittsburg, Ca. plant to form a joint venture, USS-POSCO Industries, Inc. In 1987, Marathon sold Deutsche Marathon Petro leum; also sold Geneva Steel Works and Michigan Limestone Operations, and the American Bridge Divi sion. Also in 1987, Co. and ARMCO Inc. contributed assets to form the National-Oilwell Partnership for oil field supply and services operations. In Dec. 1988, Co. and Blackstone Capital Partners L.P. and Blackstone Transportation Partners L.P. com pleted a transaction involving the formation of Transtar, Inc. followed by Transtar's purchase of the former domestic transportation businesses of Co. for net cash proceeds of $463,000,000 and a subordinated note with a face value of $125,000,000. In March 1989, Marathon purchased the stock of Rock Island Refining Corp. Assets sold during 1989 primarily included Quebec Cartier Mining Company in Canada, the Lorain (Ohio) Works to a 50 percent-owned joint venture, USS/Kobe Steel Co., five oil tankers, the U.S. Agri- Chemicals phosphate fertilizer business and all of the Corp.'s equity interest in South Africa compa nies. In 1990, Co. and Kobe Steel of Japan formed a joint venture, PRO-TEC Coating Co., to produce hot-dipped galvanized sheet product in the U.S. On Oct. 31, 1990, Texas Oil and Gas and its jointinterest partner sold their interests in the Acadian Group. On Mar. 9, 1993, Marathon acquired 2.5 percent of Colonial Pipeline Company's common stock from BP Oil Company. On June 7, 1993, Co. sold Cumberland Mine to Cyprus Coal Company. On Oct. 5, 1993, USX-Delhi's affiliate, Tonkawa Gas Processing Company, acquired a a cryogenic gas processing plant and associated contracts from the Pettus Gas Plant, L.C. of Houston. On March 21, 1995, Co. sold its Cyclone Fence oper ations to Cyclone Incorporated of Greenswich CT. Details of the transaction were not disclosed. On Oct. 23, 1995, Co.'s subsidiary. Marathon Oil Company, formed a new business unit, Marathon Power Company, Ltd. to pursue electrical power projects in the rapidly growing global electrical power market. The parties also noted that a final agreement is contin gent on certain conditions, including financing and gov ernmental approvals. Details of those conditions, and terms of the proposed sale, were not disclosed. In Nov. 1997, Co. sold Delhi Gas Pipeline Corpora tion and the other subsidiaries of Co. that comprise all of the Delhi Group to an affiliate of Koch Industries Inc. Co. stated that the holders of Co. and Delhi Group com mon stock will be notified in approximately 30 days, but not later than Dec. 26, 1997, of the amount of the net proceeds resulting from the transaction distributable to the Delhi shareholders. Co. stated that the distribution would be made no later than Jan. 26, 1998. Co. also stated that it will use the net proceeds of such disposition to redeem all shares of Delhi stock. On Jan. 1, 1998, Co. transferred certain refining, mar keting and transportation (RM&T) to a new consoli dated subsidiary, which was named Marathon Ashland Petroleum LLC (MAP). Also on Jan. 1, 1998, Co. acquired certain RM&T net assets from Ashland in exchange for a 38% interest in MAP. The .purchase price was determined to be $1.9 billioo, based upon an external valuation of the fair value. Restructuring: In Jan. 1991 the Board of Directors approved and on May 6, 1991, the stockholders approved, a plan to distribute to them shares of a new class of common stock, which is intended to reflect the performance of USX's steel and diversified businesses (Steel Stock). As part of this plan, stockholders retained their existing common stock, which is intended to reflect the performance of USX's energy business (Energy Stock). Under the plan, existing common shares were exchanged share-for-share, into USX-Marathon Group common stock and shareholders received 0.2 share USX-U.S. Steel Group common for each Co. common share held. The conversion rights of USX's convertible deben tures issues were appropriately adjusted in accordance with the terms of the respective indentures. In addition, appropriate adjustments were made to USX's stock plans, employee savings plans and Stockholder Rights Plan. On Oct. 2, 1992, Co. sold 9,000,000 shares of a new class of common stock, USX-Delhi Group, which is intended to reflect the performance of the Delhi Group. Reorganization Development: In 1990, Co. approved a reorganization of its energy segment. This included the sale of three regional exploration and pro duction packages formerly owned by TXO; the combi nation of Marathon and the remaining TXO exploration and production activities; and a realignment of responsi bility for TXO's Delhi Gas Pipeline Corporation and FWA Drilling Company subsidiaries. Business: Co. is a diversified company which is principally engaged in the energy business through its Marathon Group and in the steel business through its U.S. Steel Group. The Marathon Group is comprised of Marathon Oil Company (" Marathon" ) and certain other subsidiaries of USX which are engaged in worldwide exploration, production, transportation and marketing of crude oil and natural gas; domestic refining, marketing and trans portation of petroleum products: and power generation. Marathon Group revenues as a percentage of total USX consolidated revenues were 69% in 1997, 71% in 1996 and 68% in 1995. The U. S. Steel Group includes U. S. Steel, the largest steel producer in the United States . which is primarily engaged in the production and sale of steel mill prod ucts, coke, and taconite pellets. The U. S. Steel Group also includes the management of mineral resources, domestic coal mining, and engineering and consulting services (together with U. S. Steel, the " Steel and Related Businesses" ). Steel & Related - Equity Affili ates is comprised of joint ventures and partially-owned companies, such as USS/Kobe. USS-POSCO Industries, PRO-TEC Coating Company, and Transtar, Inc. Other businesses that are part of the U. S. Steel Group include real estate development and management, and leasing and financing activities. U. S. Steel Group revenues as a percentage of total USX consolidated revenues were 31% in 1997, 29% in 1996 and 32% in 1995. Property: Co. maintains its executive offices in Ros well, Georgia. Co. owns, leases and operates facilities in the United States and throughout the World. Marathon is currently conducting exploration and development activities in 12 countries, including the United States. Principal exploration activities are in the United States, the United Kingdom, Egypt, Gabon, Ire land, Tunisia. Canada and the Netherlands. Principal development activities are in the United States, the United Kingdom, Egypt. Gabon and Russia. USX and its wholly owned entity. U. S. Steel Mining, have domestic coal properties with demonstrated bitu minous coal reserves of approximately 799 million net tons at year-end 1997 compared with approximately 860 million net tons at year- end 1996. The decrease in 1997 was due to a lease termination. The reserves are of metallurgical and steam quality in approximately equal proportions. They are located in Alabama, Penn sylvania, West Virginia, Illinois and Indiana. Approxi mately 96% of the reserves are owned, and the rest are leased. The leased properties are covered by. a lease which expires in 2005. U. S. Steel Mining coal produc tion was 7.5 million tons in 1997. compared with 7.3 million tons in 1996 and 7.5 million tons in 1995. Coal shipments were 7.8 million tons in 1997, compared with 7.1 million tons in 1996 and 7.5 million tons in 1995. Subsidiaries Carnegie Natural Gas Company Carnegie Interstate Pipeline Company Carnegie Production Company Speedway SuperAmerica LLC Marathon Guaranty Corporation Marathon International Oil Company Marathon International Petroleum Ireland Marathon Oil Company Marathon Oil U.K., Ltd. Marathon Petroleum Ashrafi, Ltd. Marathon Petroleum Company (Norway) Marathon Petroleum Egypt, Ltd. Marathon Petroleum Investment. Ltd. Marathon Petroleum Syria. Ltd. Marathon Ashland Pipe Line LLC Marathon Sakhalin Limited United States Steel International. Inc. U. S. Steel Mining Company, LLC USX Capital LLC USX Engineers and Consultants. Inc. USX Portfolio Delaware, Inc. Limited 1976 VOL. 2 J-Z MOODY'S, INDUSTRIAL MANUAL w il l ia m o . d w y e r , Publisher HENRY PORRECA, Ass't Publisher ROBERT p. HANSON, Editor-in-Chief Editorial Board ROBERT W. BURKE KENNETH W. CLIFFORD BRIAN T. COFFEY RICHARD B. DAVIS ALFRED G. ELLINGHAM M ICH A EL ERWIN W. KAUFMAN HOWARD G. KIEDAISCH JO SEPH B. LEIGH JO SEPH J . NESTO FRANK R. PLATAROTE A. RABBIA MOODY'S INVESTORS SERVICE, INC. 99 CHURCH STREET, NEW YORK, N. Y. 10007 (212) 267-8800 SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES Copyright 1976 by MOODY'S INVESTORS SERVICE, INC. New York All rights reserved. M O O D Y 'S IN D U S T R IA L M A N U A L 2669 oAp i t a l s t r u c t u r e UNITED STATES STEEL CORPORATION I5ILONG TERM DEBT ^ Issue R atin g T im es R]A m ount C harges E arn e d O u tstan d in g 1975 1974 Interest Dates Call Price 1 D e b e n tu re 4s, 1983 _______________ o' D e b e n tu re 4%s, 1986 _____________ o' D e b e n tu re 7%s, 2001 _____________ 4 S u b o rd . d e b e n tu r e 4%s, 1996 ______ 5 Ind. devel. & environ, im pr. bonds. g O ther d e b t ---------------- ----------------7. S u b sid ia ry d e b t ___________________ c a p it a l STOCK Issue 1. Common _________________________ Aa Aa Aa A Par V alue 51 $87,600,000 120, 000,000 150.000. 000 562.800.000 251.600.000 14,700,000 398.400.000. Amount O utstanding 154,257,181 shs. 10.93 11.04 Earned per Sh. 1975 1974 $10.31 $11.64 J& J15 A&015 M&S 1 iJS iJ 1 3101 33101% E 106.20 E103 Divs. per Sh. 1975 1974 $2.80 $2.20 Call Price [TJSubject to change; see tex t; also callable fo r sinking fu n d . S B e fo re u n a m o rtize d discount. See "N o te" u n d e r gjYear end shs. outstg. Price 1975 81%- 73 76%- 71% 93%- 83% 58%- 46 Range 1974 78%- 70 77%- 58% 99 - 79% 64%- 54% Price Range 1975 1974 71%- 38% 48%- 35% long-term debt below. histo ry lateral debentures issued by Canadian Bridge chase of certain assets of Pittsburgh Chemi Incorporated in D elaw are Sept. 13, 1965 Co.. Ltd. O n J u ly 1, 1939, a cq u ired p ro p e rtie s of B oyle cal Co. (see above.) In 1966 form ed a new division know n as as U. S. S te el Co., a su b sid iary of U nited M a n ufacturing Co.. Inc., of C alifornia, m an u USS Chem icals to consolidate coal chem ical States Steel Corp. On Ja n . 1, 1966 m erged fa c tu re r of sh e e t m e ta l p ro d u c ts such as b a r sales activ ities of U. S. Steel and of P itts United S tates S teel Corp. a n d adopted p re s rels, tanks, etc., a n d organized B oyle M anu b u rg h Chem ical Co., w hich was p re viously ent name Predecessor com pany was incor facturing Co. (Del.) (nam e late r changed to operated as a separate division. porated in N ew Je rse y Feb. 25, 1901. U. S. Steel P ro d u c ts Co.) to o p e ra te such p ro p In Ja n . 1967, Oxo Chem icals Co., w hich Immediately following incorporation it ac erties . _ had been a w holly owned subsidiary of U. S. quired p ra ctic a lly th e e n tire issued cap ital In A pril, 1948, F e d e ra l S h ipbuilding Sc D ry Steel w as m erged, w ith business conducted stocks of th e follow ing corporations. T he D ock Co., a w holly-ow ned su b sid ia ry sold as p a rt of USS Chemicals. Carnegie Co., F e d e ra l S teel Co., N atio n al sh ip y a rd a t K earn y , N. J. to U. S. N avy for In 1968, U. S. business of A rm our A gri Tube Co., A m erican S teel & W ire Co. (N. J.), $2,375,000. c u ltu ra l Chem ical Co. was acquired by USS National S teel Co., A m erican S teel H oop Co. On Aug. 31. 1948, com pany's w holly-ow ned A gri-C hem icals, Inc., a w holly-ow ned sub American S heet S teel Co., A m erican T in P la te subsidiary, C onsolidated W estern Steel Corp. sidiary. Co., A m erican B ridge Co., L ak e S u p e rio r C on p urchased fa b ric a tin g assets a n d business of In Mar. 1968, p urchased assets of plastics solidated Iron M ines, Shelby Steel T ube Co. Consolidated S teel Corp. fo r ap proxim ately division of G eneral Am erican T ransportation There w ere also a cq u ired th e e n tire issue of $8,300.000. . Corp. bonds of T he C arnegie Co. a n d a o n e-six th E arly in 1951 th e fo rm e r w holly-ow ned sub In Dec., 1968, acquired over 90% of Alside, interest in th e cap ital stock of O liver Iro n sidiaries C arnegie-Illinois S te el Corp., H. C. Inc. (Ohio) for $39,000,000 cash. Also, in 1968, Mining Co. a n d P itts b u rg h S team ship Co. F ric k Coke Co. a n d U. S. Coal Sc Coke Co. organized U. S. Steel Finance Corp., acquired Subsequent to th e acquisition of th ese com w ere m erged in to U. S. Steel Co., N. J. controlling interest in Metasa, a N icaraguan panies, th e c o rp o ra tio n fo rm ed th ro u g h in As of Dec. 31, 1951, U. S. S te el Co.. N. J,, m an u fa ctu re r, a n d jo in tly w ith U. S. P ly ternal corporate adjustm ents, or acquired by m erged the follow ing w holly-ow ned subsidi wood-Cham pion Papers, Inc., form ed equal purchase or lease, th e follow ing; In 1901, The aries; A m erican B ridge Co., A m erican Steel ly-ow ned B irm ingham (Ala.), F o re st P ro d Aragon Iro n M ines; Dec. 1, 1902, th e U nion Sc W ire Co., B ra d le y T ra n sp o rta tio n Co., Co ucts, Inc. Steel Co.; Ja n . 1, 1903, T he T roy S te el P ro d lum bia S teel Co.. C onsolidated W estern Steel ucts Co.; A p ril 1, 1903, T he H. C. F ric k Coke Co. (survivor in m erg e r of sev eral sub sid iaries Corp., G eneva Steel Co., G e rra rd Steel S tra p ping Co., Illinois S teel Co., M ichigan L im e SUBSIDIARIES of same c h a ra c te r); Sept. 1, 1903, th e U nited stone Sc C hem ical Co., N ational T ube Co.. Oil A t Dec. 31, 1975, 100% of the v o tin g p o w er States Steel E x p o rt Co. (nam e la te r changed Well Supply Co., O liver Iro n M ining Co., was ow ned in the follow ing subsidiaries; to United S ta te s S teel In te rn a tio n a l (N. Y.), P ittsb u rg h S team ship Co., T ennessee Coal, N am e, place of incorporation a n d business: Inc.--organized to c onduct e x p o rt business Iron & R ailroad Co., U nited S ta te s Steel P ro d of subsidiaries); M ay 1, 1904, T he C lairton ucts Co.. U nited S tates S teel S u p p ly Co., U ni Consolidated Steel Co.; in 1906, organized th e In d ian a Steel versal E x p loration Co., V irginia B ridge Co. Alside, Inc. (Del.) Apollo Gas Co. (Pa.) Co., G ary L and co., G ary H eat, L ight Sc Wa ter Co., a n d Oct. 1, 1906, th e U niversal P o rt As of Jan . 1, 1953, U. S. Steel Co. w as m erged w ith U. S. Steel Corp. and 1958 m erged U ni B aham a Cement Co.. L ib e r ia --- o p e r a t e s ce land Cem ent Co. (acq u ired tw o cem en t versal A tlas Cem ent Co. m ent plant on G rand Bahama Island. B essem er & L ake E rie R ailracd Co.--see plants); Ja n . 2, 1907 leased th e G reat N o rth On M ar. 31, 1956, com pany sold all of ves ern Iron Ore P roperties, w hich lease w as sels and foreign trad e routes and business of Moody's T ransportation Manual. cancelled by the c o rp o ratio n eS ectiv e Ja n . Isth m ia n S team ship Co. B irm ingham S o u th ern R.R. Co. (Ala.)--o p e r ates railroad line. 1, 1915; in 1907, The N atio n al Steel Sc Wire Co.; Nov., 1907. T he Tennessee Coal, In 1961 com pleted a g ree m e n t w ith T erni In d u strials E lectrical Co. (See M oody's Public C arbon C ounty Ry. Co. (Utah) Iron & R ailroad Co.; in 1908, p la n t and U tility M anual) to fo rm T erninoss A cciai In C arnegie N a tu ral Gas Co. 'Pa.) equipment of T he Schoen S teel W heel Co.; in 1917, organized F ed eral S hipbuilding Co. ossidabili, S.p.A., a com pany in Italy for pro duction and sale of stainless steel mill prod Companhia M eridional de Mineracao (Brazil) Quebec C a rtie r M ining Co. (Canada)--D evel- (name la te r changed to F ed eral Shipbuilding ucts. P la n t began operatio n s in 1964. opm ing iro n ore m ines. ICO m iles n o rth of & Dry Dock Co.); in 1924. a cq u ired Cyclone D uring 1962, com pleted a rra n g e m e n ts w ith Fence Co. In 1926. U nited S tates S teel P ro d u c ts Societ F in an ziaria S iderurgica Finsider, Shelter Bay an St. Law rence R iver in Quebec. Co., a cq u ired c o n tro l o C om paa de M ae S.p.A., an Ita lia n com pany, for equal p a rtic i Island C em ent Co. Ltd. (Bahamas) stranzas y G alvanizacin of Chile. p atio n in a steel fa b ric atin g business. The L ake T erm in al R.R. Co. Ohio)--See M oody's In Jan., 1930, a cq u ired th e A tlas P o rtla n d fa b ric atin g com pany, know n as C.M.F.-- T ran sp o rta tio n M anual. Cement Co. p ro p e rties--an n u al c ap a city 18,- C ostruzioni M etalliche F insider, S.p.A. began M cK eesport C onnecting R.R. Co. (Pa.)--See 000,000 b a rre ls --(see M oody's 1929 In d u stria l op eratin g a new p la n t a t Sabbio in early 1964 M oody's T ran sp o rta tio n Manual. Manual), p aying th e re fo r 176,265 sh a res of its and a n o th e r new p la n t a t L ivorno in 1965. N ew burgh & S outh Shore Ry. Co. (Ohio)-- common stock; th e A tlas p ro p e rties w ere su b In 1967 disposed of its o ne-half in te re s t in S ee M oody's T ran sp o rtatio n M anual. sequently consolidated w ith th e U niversal C.M.F. to c o -p artn er. Finsider. N o rth h am p to n Sc B ath R.R. Co. (Pa.)--See Portland C em ent Co., subsidiary, u n d e r th e A cquired in e arly 1963 17,000 shares (25%) M oody's T ran sp o rta tio n Manual. title U niversal A tlas C em ent Co. In Ja n ., 1930, of P itts b u rg h C hem ical Co., su b sid iary of P ittsb u rg h 8c C onneaut Dock Co. (W. Va.). acquired C olum bia Steel Corp. p ro p e rties (see P itts b u rg h C oke Sc Chem ical Co., fo r about N avigen C om pany, (Liberia) Moody's 1930 In d u stria l M anual), p ay in g th e re 52,600.000. C om pany also g u a ran tee d in p a rt N avios Corp., (Liberia) for 251,771 sh a res of com m on stock. In 1930 $10,400,000 b a n k lo an to P itts b u rg h Chem ical, Ohio B arge Line, Inc., Pennsylvania acquired W ashington Coal & Coke Co. p ro p e r p e rm ittin g la tte r to p a y off loans and a d W arrior a n d G ulf N avigation Co. (Ala.) ties, th ro u g h th e su b sid ia ry H. C. F ric k Coke vances to its p a re n t com pany a n d red u ce D uluth, M issabe & Iro n Range R ailw ay Co.-- Co. On Oct. 1, 1930, a cq u ired Oil W ell Supply d irec t b a n k obligations. see Moody's Transportation Manual. co. p ro p erties, m a n u fa c tu re rs a n d d istrib u In A pr. 1964, C om pany a n d N ational D is Elgin, Jo lie t Sc .E a ste rn R ailw ay Co.--see tors f oil w ell e q u ip m e n t (see M oody's 1930 tillers Sc Chem ical Corp. a cq u ired equal in M oody's T ran sp o rta tio n Manual. industrial M anual), p aying th e re fo r 108,402 tere sts in R eactive M etals Inc., a reorganized O rinoco M ining Co. (Del.)--O rganized in 194Q common shares. and recapitalized company. This company to develop Venezuela iron ore deposits. In A pr., 1931, a cq u ired th e o u tstan d in g m i acq u ired th e ex istin g facilities of N ational U nion R ailroad Co.--See Moody's T ran sp o rta nority in te rest in E dgar Zinc Co., th ro u g h the D istillers fo r p roduction of titan iu m and tion M anual. subsidiary A m erican S teel Sc W ire Co. In A pr., o th e r m etals a n d fo r fa b ric atio n of finished U nited S tates S te el Intern atio n al, Inc. (N. J.) m ade arrangem ents w ith Fried. K rupp, mill products. U. S. Steel W estern H em isphere, Inc. (Del.) G erm any, w h e reb y su b sid ia rie s of In J u ly 1964, p u rc h ase d assets of In d u strial USS E ngineers & Consultants, Inc. (Del.) n i ' j d s ta te s S te el w ere licensed b y K ru p p C hem icals and P ro te ctiv e C oatings D ivisions U. S. Steel O verseas Capital Corp. (Del.) under vario u s p a te n ts it ow ned to m an u fac- of P itts b u rg h Chem ical Co. T hese divisions Y oungstow n & N o rth e rn R.R. Co. (Ohio) steelsCOITOSlOU' h e a t re sistln 8 a n d o th e r alloy w ere form ed in to a single n ew division of Not Consolidated - U. S. Steel, u n d e r nam e of P itts b u rg h C hem P e rc y W ilson M ortgage Sc F in an ce Coro. T*?1 i,a n ' 1936> a c q u ire d V irginia B rid g e & iron Co. p ro p e rty , th ro u g h V irginia B ridge ical Co. This division produces basic m ate rials for the plastics industry, tar-based (Del.) U. S. Steel C red it Corp. (Del.) CO. a su b sid ia ry of T ennessee Coal. Iro n Sc nailroad Co., subsidiary. In Ja n ., 1937, acq u ired enamels for pipelines, tar and asphalt-based In addition to above subsidiaries, company ie , !i er? a?'d Co- Inc.--th ro u g h A m erican coatings, and other industrial chemicals. Also in 1964, a 50% ow nership w as acquired controls other companies which are not sig nificant. o # * 1 * w i r ? Co., su b sid ia ry --m a n u fa c tu re r 01Tm achines fo r ty in g c o n tain ers w ith w ire. in Societ Italiana D erivati Vergella-D eriver, S.p.A., an Italian com pany reorganized in B U S IN E S S Mar-. !933, th e T ennessee Coal, Iro n & s S ? d,, - P u rch ased from T he A m erican 1964. T his com pany p roduces w ire and w ire U. S. S te el's m a jo r lines of business a re e stfi Wir e Co. of N ew J e rse y all of its re al pro d u cts to serv e in grow ing m ark e ts in S te el M anufacturing, F abricating & E ngi Jefferson County, Ala., w hich in- Ita ly and n e a rb y countries. T he o th e r 50% is owned by parent m em ber of Finsider Group neering, Chemicals and Transportation Sub t h i v , t?**, re a l e state a n d p la n t kn o w n as me Fairfield Plant of The Am erican Steel & of companies in Italy. sidiaries. Tables below indicate products and services sold and income before estim ated Wire Co. a n d w hich w as th e fo rm e r A m erican In 1964, a rra n g e m e n ts w ere com pleted for U. S. and fo reig n taxes on incom e fo r each steel & W ire Co. of Alabam a. a p a rtia l ow nership of A ltos H om os de of U. S. S te el's lines of business d u rin g th e As of Sept. 1, 1937, com pany sold to Do- V izcaya (AHV), a n in te g rate d ste el com pany p a st th re e years. huruon S teel Sc Coal Corp., Ltd. th e follow ing in Spain. T his p a rticip a tio n includes a su b subsidiaries, h av in g p ro p e rties located in C an sc rip tio n to 25% of th e o u tstan d in g stock, a Sales and Revenues (Millions of Dollars): i ja : C anadian Bridge Co., Ltd., C anadian cteel Corp., Ltd.. C anadian Steel Lands. Ltd.. loan arrangem ent, and the furnishing of broad technical and m anagerial assistance. P ro d u c ts Sc services sold by lines of busi- ness: 1975 1974 1973 t aJJa ia n s te e l Sc W ire Co.. Ltd., E ssex T erm Steel M f g ._____ In .1965 a cq u ired re m a in in g 50% in te re s t Fab. Sc e n g . ___ $6.630 934 $7,724 756 $5,830 668 inal R ailw ay Co. C onsideration received was n P art cash and p art m ortgage bonds and col- in Oxo C hem icals Co., H averhill, O. O riginal 50% in te re s t w as a cq u ired as p a r t of p u r- C h e m ic a ls _____ Transp. Subs. 656 733 408' 534 633 434 MOODY'S MANUAL OF INVESTMENTS AMERICAN AND FOREIGN INDUSTRIAL SECURITIES JOHN SHERMAN PORTER, E ditor-in-C hief Editorial Board Joseph A. D ittrich Max F. B rupbacher Nelson Schaenen L. A. Griffin Walter F. Hahn Joseph M. Oliver Frank J. St. Clair 1939 .it n K 3 COPYRIGHT, 1939, BY M oody's I n v e s t o r s S e r v ic e , N e w Y o r k ALL RIGHTS RESERVED MOODY'S INVESTORS SERVICE 65 BROADWAY, NEW YORK PHILADELPHIA BOSTON CHICAGO LOS ANGELES PITTSBURGH SAN FRANCISCO Stock Exchange Bldg. 75 Federal St. 105 W . Adams St. H ollingsw orth Bldg. Union T ru st Bldg. Russ Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD. KING WILLIAM STREET H O U SE, ARTHUR STREET, E.C.4 MOODY'S MANUAL OF INVESTM ENTS 3071 UNITED STATES STEEL CORPORATION T each In B uenos A ires, H a v an a , H onolulu, Ponce (P o rto Rio de Ja n e iro and Shanghai, and th ro u g h its C anadian *' diary, C o m b u stio n E n g in e e rin g C orp., L td., m a in ta in s 4 in oiitrnli S u p e rh e a te r Co. (see preceding sta te m en t) ac$5 -ed fin an c ia l c o n tro l by p u rc h a s e fro m th e u n d e rw rite rs , rden. Stone & Co., and from o th ers, of th e se c u ritie s of the ry & e, r co m p a n y o ffered u n d e r th e p la n of r e o rg a n iz a tio n to ,363 (* Jito rs a n d s to c k h o ld e rs o f th e old c o m p a n y a n d n o t ta k e n tal, $2 such c re d ito rs a n d s to c k h o ld e rs. A s of Dec. 31, 1938, S u p er- ' te r Co. ow ned $3,812,000 firs t m o rtg a g e incom e os, 1957, and ,968 s h a re s of com m on sto c k , w h ic h is a p p ro x im a te ly 75% g folio the o u ts ta n d in g sto c k . On M ar. 23, 1939, co m p a n y issued 5, 108 TOO,000 s e rie s B b o n d s to S u p e rh e a te r Co. in liq u id a tio n of rent obligations to latter. !o., Lti la iia g e m e n t: O fficers: G. `I.. B o u rn e , C h a irm a n : F. A. ,a ff, P re s.; J. V. S a n try , R. M. G a te s, M. H. Ise n b e rg , Jo h n n B ru n t, F. H. R o s e n c ra n ts , C. H . T ru e , J. S. S kelly. V icees : H. H . B e rry , V ic e -P re s. a n d T r e a s .; G. W . G rove, Sec. . . _ a A sst. T re a s .: G. D. Elli-= C o m p t.; T. F . M orris, A sst. Sec. 'e t Cur -e c to rs: G. L. B o u rn e , G. T. L add, S. L . P ro b a sc o , F. A. Schaff. A ssef r . W ood, J. E. D ixon, O. L. G u b e lm a n , F . A. P o o r, J. V, 13,605rntry . A n n u a l M e e tin g : Second T u e s d a y in A p ril. Office: 13,3521) M adison A ve., N ew T o rk C ity. CoNSOLIDATED I ncome Account, Years E nded Dec. 31 1938 1937 1936 i n 'noilrross profit bef. d e p rec ... $422,524 $456,790 (d)$l,275 8Iq sfW e c ia tio n .......................... 266,413 236,924 225.689 s'q,,,Jet operating p ro fit............. 156,111 219 866 (d)226,96t "'" "h e r income ( n e t ) . . ......... 85,417 65,821 47,399 ital income ........................... 241,528 285,687 (d)179.565 ind interest ........................ 95,442 190,600 118.890 . . . idler i n t e r e s t ........................ 49,340 39,686 9,443 lim es in te rest e a rn e d ......... 1.67 1.24 icome ta x ............................ 32,511 11,022 16,715 0 101 irtax ..................................... 12,386 0S03 fet income ............................. 64,236 31,994 $) y ears to Dec. 31: (d)324,612 17 82 1938 1937 1936 1935 1934 99 0.41 0.21 (d)2.15 (d)2.20 (d)4.67 Num ber of common sh a re s: 1938, 154,830; 1937, 152,066; 1936, 2351,055 ; 1935, 150,613 ; 1934, 150,517. {A fter selling, general and adm inistrative expenses and provi91 2 on fo r bad debts a n d allowances. SEC C o n so lid a ted B a l a n c e S h e e t , as of D ec. 31 (Including U. S. and C anadian subsidiaries) 1 Assets: 1938 1937 1937, Property, plant, 8 6p a sh & sec. held e t c .......... by rec..... $3,511,392 ........... %. $3,310,108 . :poodw ill, etc........................... 1 i S2 invest, in E uropean cos... 17ash ....................................... 1 1,372,864 1 511,257 39, 2819. :m arketable securities . , 3,018 ts Llccis. & notes rec. ( n e t ) . .. 2.339,376 2,874,825 ftInventories ........................ . 2,390,840 3,508,0 37 (Due from em ployees.......... 13,042 12,042 reco|[Closed banks ( n e t ) ............... [Deferred c h a r g e s ............... . 3.889 118,900 80 114,666 1936 $2,810.279 15,385 1 1 750,659 3,019 2,174,518 2,559,9 72 6,070 80 133,575 R eg Total ..................................... [ Liabilities: Capital stock (p a r $ 1 )........ Minority i n t e r e s t ................. [First income 5 s ...................... Res. fo r contingencies......... 31.' Notes pay. Due -parent (non-current). company. ..,. . . 16,0: Other accounts p a y a b le .. . . 20,2!| A c c r u a ls ................................... "5,33 Provision fo r incom e tax- - 5,ua Advance p a ym en ts ............. fiuii Res. fo r contract losses. . . Capital surplus .................... >9.3(1 Operating deficit ................. $9,549,715 $154,S30 89,501 3.744.000 1.700.000 121,012 188,957 .375,493 262,67.} 165,129 228,91,2 11,311 (a)3,879,892 1,372,025 $10,334,025 $152,066 89,501 3,812,000 121.012 2,000.000 t l , 185,346 637,864 367,668 41.465 111.562 31,82t 3,250,079 1,436,260 $8.453,557 $151,055 89,501 3,812,000 80,423 ............... 1,560,092 566,767 290,025 16,19t 83,993 21,684 3.250.079 1,468,254 >3,75| 5.6(1 2,8(1 9,i: T o t a l ..................................... $9,549,715 $10,334,025 $8.453.557 1938 1937 1936 C urrent assets ...................... C urrent liabilities ................ N e t current a s s e ts ................ $5,902,489 1,232,50.1 5,669,985 $6,897,128 2,3.15,626 4,551,502 $5,-588,168 2,538,753 2,949,4-15 {C onsists o f: 214% notes payable, $300,000; accounts payable. $712,759; accrued interest, $122,487; total. $1,135,246. A f te r d ep reciatio n : 1938, $3,689,059; 1937, $3,461,939 ; 1936, $3,290,020; 1935, $3,147,147. t At cost or m arket whichever is lower. Includes unbilled in sta lla tio n w ork in p ro g re s s : 1938 and 1937, not s ta te d ; 1936, $384,149. il Issued on M arch 23, 1939, due Oct. 1, 1948. (a) Includes $725,468 received from companies in E urope and England for exchange of technical information and patents re lating to combustion engineering, etc. N o tes: (1) A sinking fund in stallm ent of $187,200 for the redem ption of the 5 % income first m ortgage bonds is payable to the tru ste e on o r before Sept. 28, 1939. No provision w as made for in te rest on these bonds for six m onths ended Dec. 31, 1938. as there were no consolidated net earnings for interest for such period as defined in indenture. . t, (2) D ividends a re in a rre a rs to the extent of $72,048 a t Dec, 31, 1938 on cum ulative p referred stock of a subsidiary held by m inority interest. _ (3) A ccounts certified by A rth u r A ndersen & Co. Funded D eb t: 1. C om bustion E n g in ee rin g Co., Inc. first'5a (incom e) series, of 1087, due 1957: A u th o riz e d (b o th s e r ie s ) -- $8,000,000; o u ts ta n d in g , $3,744,000; a ll o w n ed b y S u p e rh e a te r Co. D a ted --J a n . 1, 1937; d u e A pr. 1. 1957. In te re st P ay ab le--A&O 1 only pro ra ta out of and to the e x te n t of th e c o m p a n y 's c o n so lid a te d n e t e a rn in g s a v a ila b le fo r in te re s t. I n te r e s t p a id a t r a te o f 5% p e r a n n u m to Oct. 1, 1938, incl. No i n te r e s t w a s p a id on A pr. 1, 1939. Callable-- On any in te rest d ate a t principal am ount and ac crued interest. S in k in g F u n d -- B e g in n in g in 1938 a n d p a y ab le a n n u a lly th ere afte r in an am ount equal to consolidated net earnings a v ailab le fo r in te re s t o r 5% of th e a g g re g a te principal am ount o u ts ta n d in g w h ic h e v e r is. less. Secured--By a m o rtg a g e of a ll th e fixed assets. Including th e p la n ts , f o rm e rly ow ned by th e H e d g e s -W a lsh -W e id n e r Co., a t C h a tta n o o g a , T e n n .; C o sh o c to n Iro n Co. a t M o n o n g ah ela Pa., an d R aym ond B ros. Im p ac t P u lv e riz e r Co., a t C hicago, an d by th e fixed a s s e ts o f H e in e B o ile r Co., a t St. L ouis, and G reen E n g in e e rin g Co., a n o n -o p e ra tin g su b sid ia ry a t E a s t Chicago, 111. Iss u e d -- In Dec., 1936, to S u p e rh e a te r Co., p ro ceed s used to re tir e d th e firs t 6s A a n d B a n d deb. 5s. 2. C om bustion E n g in ee rin g Co., Inc. first m ortgage 3s, series B, due 1948: A u th o riz e d (b o th s e r ie s ) -- $8,000,000; o u ts ta n d in g $1,700,000. A ll ow ned by S u p e rh e a te r Co. D ue-- Oct. 1. 1948. In te re st P a y a b le -- A&O 1 a t fixed ra te of 3% per annum , w ith ad d itio n al in terest, if earned, of 1% per annum from Jan. 1, 1940, to Dec. 31. 1942, a n d o f 2% p e r a n n u m fro m J a n . 1, 1943, to Dee. 31, 1947. C allable--On any in terest date a t principal am ount plus ac crued interest. S e c u red -- E q u a lly w ith No. 1, see above. Iss u e d -- On M ar. 23, 1939, to S u p e rh e a te r Co. in liq u id a tio n of $1,700,000 c u r r e n t o b lig a tio n s to la tte r. <7a pi tal s to c k : C om bustion E n g in ee rin g Co,, Inc. common: A u th o riz e d . 250,000 s h a r e s ; o u ts ta n d in g , 154,830 sh a re s (in c lu d in g 100 s h a r e s in tr e a s u r y d o n a te d ) ; p a r $1. No d iv id e n d s w ill be paid thereon unless full in terest and sinking fund pay m ents due on bonds for such year have been provided for. As o f Dec. 31, 1938, S u p e rh e a te r Co. ow ned a p p ro x im a te ly 75% of the outstanding shares. T r a n s fe r A g e n t: G u a ra n ty T r u s t Co.. N ew Y ork. N um ber of sto c k h o ld e rs, Dec. 31, 1938, 374. ill9,64] H istory: (certificate Incorporated under New Jersey law s, a m e n d e d on A p ril 1, 1901). S ince its F e b . 25, 1901 organization 2.511 the c o rp o ra tio n h a s a c te d s o le ly a s a h o ld in g co m pany. 3.36 A t tim e o f its o r g a n iz a tio n c o m p a n y a c q u ire d p r a c tic a lly a ll 5.14 of th e c a p ita l s to c k o f th e F e d e r a l S te el Co., N a tio n a l T u be tioi Co.. A m e ric a n S te e l & W ire Co., N a tio n a l S te el Co., A m e ric an p: Tin P la te Co., A m e ric a n S te e l H o o p Co., A m e ric a n S h e e t S teel Co., A m e ric a n B rid g e Co.. L a k e S u p e rio r C o n so lid ate d Iro n Mines, S helby S teel T ube Co., a n d C a rn eg ie Co.; a lso th e e n tire issue of bonds ,of th e C arn eg ie Co., a n d a O ne-sixth in te re s t ,93! in th e c a p ita l s to c k of O liv er M in in g Qo. a n d P itts b u r g h 3 oil S team sh ip Co. uni Subsequent to the acquisition of these com panies, the cor poration acquired through its subsidiaries and by organiza tion, p u rc h a se o r lease, th e fo llo w in g : In 1901, .T h e A rag o n Iron M ines; Dec. 1, 1902, th e U n io n S te el Co.; J a n . 1, 1903, The T ro y S te el P ro d u c ts Co.: A p ril 1, 1903, T h e H . C. F r ic k Coke Co.; Sept. 1, 1903- th e U. S. S te e l P ro d u c ts Co.; M ay 1, ta-l 1904, T h e C la irto n S te el Co.; in 1906. o rg a n iz e d th e In d ia n a .tic| Steel Co., G a ry L an d Co., G a ry H e a t, L ig h t & W a te r Co., a n d er-| Oct. 1, 1906 th e U n iv e rsa l P o r t l a n d C e m e n t Co.; J a n . 2, 1907, re- leased th e G re a t N o rth e rn Iro n O re p ro p e rtie s , w hich lea se 19| Jras c an c e lle d by th e c o rp o ra tio n in 1915; in Oct., 1907. T he e-\ N ational W ire C orp.: Nov., 1907, T he T e n n e sse e Coal, Iro n & sr-l R. R. Co.: in J u ly . 1908, T h e Schoen S teel W h ee l Co.; in 1917, eri o rg a n iz ed th e F e d e ra l S h ip b u ild in g Co.: in 1921. a c q u ire d th e C yclone F e n c e Co. In 1926. U n ite d S ta te s S te el P ro d u c ts Co., a subsidiary, acquired control of Com paa de M aestranzas y G alvanizacin of Chile. m l In J a n .. 1930. a c q u ire d th e A tla s P o r tla n d C e m e n t Co. (see a, I Moody's 1929 I n d u s tr ia l M a n u a l), p a y in g th e r e f o r 176.265 com idI m on sh a re s . T h e A tla s p r o p e rtie s w e re su b s e q u e n tly c o n so lid ate d w ith th o s e of th e U n iv e rs a l P o r tla n d C e m e n t Co. finder th e title U niv ersal A tlas C em ent Co. A lso purchased th e p r o p e rtie s o f C o lu m b ia S te e l C orp. (see M oody's 1926 I n d u s tr ia l M a n u a l) in J a m . 1930,.R a y in g th e r e f o r 251.771 sh a re s of comm on stock. TheC properf ie s ' of'C olum bia Steel Corp. Im l-930-^Tr-er-Frick C oke Co>,xa s u b s id ia ry , a c q u ire d th e W a s h in g to n C oal & C oke Co. A c q u ire d th e p ro p e rtie s a n d b u sin e ss w ere tra n s fe rre d to a su b sid ia ry of U nited S tates Steel Corp. o f Oil W ell S u p p ly Co., m a n u f a c tu r e r s a n d d is trib u to rs of oil field e q u ip m e n t (se e M oody's 1930 I n d u s tr ia l M a n u a l), a s of Oct. 1, 1930, p a y in g th e r e f o r 108.402 s h a re s of com m on stock. In A pril, 1931, th e A m e ric a n S te el & W ire Co., a su b sid ia ry , a c q u ire d th e b u s in e s s a n d s m e ltin g p la n t o f E d g a r Z inc Co. In A p ril, 1931, U n ite d S ta te s S te el Corp. m ade a rra n g e m e n ts w ith F ried. K ru p p , A.-G. of E ssen, G erm any (see general in dex), covering A m erican rig h ts for use of various patents of th e G e rm an c o n ce rn . In J u n e . 1931. th e S h a ro n Coal & L im e s to n e Co., a su b s id ia ry , a c q u ire d th e p ro p e rty of th e P i t t s burgh & E rie Coal Company. In Ja n ., 1936, a c q u ire d th e p ro p e rtie s of V irg in ia B ridge & Iro n Co., th ro u g h th e T en n essee Coal, Iro n & R.R. Co.; the a c q u ire d p r o p e rtie s w e re tr a n s f e r r e d to V irg in ia B rid g e Co., w hich w as organized fo r th a t purpose as a subsidiary of the latter company. In J a n u a ry , 1937 c o m p a n y a c q u ire d , th ro u g h its su b s id ia ry A m e ric an S te e l & AVire Co., 89% o f p re fe rre d a n d 96% of com m on s ta c k o f th e G e r r a r d Co., e n g a g e d in th e m a n u fa c tu re of m achines for tying w ith wire, boxes and other con tain ers fo r c itru s fruits, dried fruits, apples, fibre m aterials, new spaper bundling, etc., w hich m achines are leased to users. A s o f S ept. 1, 1937. th e U n ite d S ta te s S teel Corp. sold to Dom inion Steel & Coal Corp., Ltd., th e follow ing subsidiaries having pro p erties located in Canada, namely. C anadian Bridge Co., L td., C a n ad ian Steel Corp., Ltd., C anadian Steel Lands, Ltd., C an ad ian S teel & W ire Co., Ltd., and th e E ssex T erm inal Ry. Co. C o n s id e ra tio n re c e iv e d w a s in p a r t c a sh a n d in p a r t m ortgage, bonds and co llateral debentures. Issued by Canadian B rid g e Co., L td., b o th issu es c a rry in g th e p riv ileg e of eon- 3072 MOODY'S M A N U A L OF I N V E S T M E N T S version into Dominion Steel & Coal Corp. comm on class B stock. The aggregate consideration received w as reported to be $4,000,000. In Dec., 1937. F e d e ra l C oke Corp. w a s o rg a n iz e d a s s u c c e ss o r to S h aro n Coke Co., a su b sid ia ry . T he M org an P a r k Co. (fo rm e rly a s u b s id ia ry ) a ls o w a s m e rg e d in Dec., 1937. Business: Corporation is a holding com pany ow ning a con trolling stock interest in various subsidiaries, w hich as a group principally conduct integrated operations for the pro duction and sale of a w ide v a rie ty of finished and sem i finished steel products. Subsidiaries produce and sell pig iron, and also m iscellaneous products w hich a re b y -products of, or closely related to, the iron and steel m an u fa ctu rin g a ctiv ities. Subsidiaries engage in the fabrication and erection of various steel structures, such as bridges and buildings, and in the construction of railroad freight cars, ships and barges. A su b sid iary is engaged in th e m an u fa ctu re and sale of cem ent. The integrated operations include the production of sub sta n tia lly all of the iron ore and lim estone, m ost of the coal, and a p a rt of the dolom ite, zinc ore, fluorspar and m anganese ore (from a m ine ow ned in B razil) used by th e subsidiaries: the operation of coke ovens w hich supply su b stan tially all of the coke, coke oven gas and ta r used by the subsidiaries; the generation of a m ajor p a rt of the electric pow er required by the subsidiaries; and the operation of steam ships, barges and docks on the G reat Lakes, and steam ers, tu g s and barges on various rivers for the transportation of raw m aterials and finished and sem i-finished products. The more im portant m aterials used directly by the sub sidiaries for which they look for th eir requirem ents to sources of supply outside of the U nited S tates are m anganese ore, chrom e ore, nickel, palm oil, and p ig tin . The corporation, through its subsidiaries, co n stitu tes the d o m inant facto r in the dom estic steel in d u stry and is also the la rg e s t concern in th e cem ent field. In g o t c ap a city of th e c o rp o ra tio n 's su b s id ia rie s a m o u n ts to a p p ro x im a te ly 37% of the to tal for the U nited States. Steel Ingot Capacity and Production Compared to Total United Stntes Capacity and Production Pro d u ctio n P ro d u ctio n Capacity T ear to Capacity T ear to a t Jan. 1 Dec. 31 a t Ja n . 1 Dec. 31 1 9 2 8 ... 40.1% 40.1% 1 9 3 4 ... 33.6% 1929. . . . . 39.4 40.1 1935... 39.4 33.1 1930. .. 40.1 42.4 1 9 3 6 ... . . 38.7 35.9 1931. . . 39.2 39.8 1 9 3 7 ... 37.2 1 9 3 2 ... 41.0 36.8 1 9 3 8 ... 1 9 3 3 ... 40.3 35.4 * P ercen t of U. S. Steel subsidiaries cap acity and production, respectively, to total in United States. N ote: Percentages relate to open hearth and bessemer steel in g o ts; figures do not include castings or ingot capacity and pro duction of electric furnaces and crucibles or of steel foundries, for all of which complete d a ta for the entire United States is not available. Customers and Sales: Sales of th e p ro d u cts of th e m an u fa c tu rin g subsidiaries a re m ade by them p rim a rily to a w ide field of custom ers throughout the United States, such custom ers including m anufacturers, converters and processors, can pro ducers, autom otive companies, railroads, public utilities, m in ing and oil producing com panies, fab ricato rs, co n tracto rs and builders, supply houses, jobbers and dealers, as w ell as indus tr ia l and o th e r consum ers. In 1937, sa le s to fifty c u sto m e rs am o u n te d to a p p ro x im a te ly 38% of g ro ss sales. C a rn e g ie Illin o is Steel Corp.. a s u b s id ia ry o f th e c o rp o ra tio n , in 1937 sold u n d e r the c o n tra c t d escribed below , a p p ro x im a te ly $57,000,000 of tin m ill p ro d u c ts to A m erican Can Co., th e la r g e s t single custom er of the corporation and its subsidiaries. C er tain subsidiaries sell, to a lim ited extent, articles m anufac tured by non-affiliated companies, w hich articles gen erally are com plem entary to the products m anufactured and sold by such subsidiaries. A m erican Can Co. S teel P u rch ase C ontract: T h e fo llo w in g a re th e te rm s of a s te e l p u rc h a s e a g re e m e n t d a te d S ep t. 22, 1936, b e tw e e n C a rn e g ie -Illin o is S te el Corp. ( th e s e lle r) a n d A m e ric a n C an Co. (th e b u y e r ) : Seller agrees to sell and deliver and buyer agrees to buy a n d re ce iv e , fro m J u n e 19. 1936 to Dec. 31, 1941. b o th in c lu sive, tin m ill products, as th erein defined, in th e fo llo w in g q u a n titie s: (1) F ro m Ju n e 19. 1936 to Dec. 31, 1936, e ith e r t h a t q u a n t i t y b y w h ic h 65% of b u y e r's re q u ire m e n ts (in c lu d in g b u y e r's s u b s id ia rie s ) of tin m ill p ro d u c ts, d u r in g th e f u ll v e a r 1936, fo r use in m an u fa ctu rin g in th e U nited S ta te s and its p o s se ssio n s, s h a ll exceed th e q u a n tity sh ip p e d fro m J a n . 1, 1936 to J u n e 18, 1936, or, t h a t q u a n tity b y w h ic h 10,500,000 u n its exceed the q u an tity shipped during the last nam ed period, w hichever is greater. (2) D u rin g each of th e y e a rs 1937 to 1941, in c lu siv e , 65% of b u y e r's (a n d s u b s id ia rie s ) r e q u ir e m e n ts o f tin m ill p ro d u c ts d u r in g su c h y e a r, o r 10,500,000 u n its , w h ic h e v e r s h a ll be greater. B uyer m ay coat all or any p art of its tin plate req u ire m ents and in so fa r as it shall do so, th e b lack p late so used s h a ll c o n s titu te p a r t o f b u y e r's re q u ire m e n ts , b u t six m o n th s ' notice of changes in such p ractice shall be given to seller. If in an y y e ar sh ip m en ts ordered are less th a n sh ip m en ts re q u ire d u n d e r th e a g re e m e n t by n o t m o re th a n 250,000 u n its , buyer m ay cure such default by ordering and accepting d u r ing th e ensuing year th e q u a n tity of such deficiency in a d d i tion to th e q uantities otherw ise required to be purchased during such ensuing year. P ric es of specified tin m ill p roducts to o th er custom ers of seller, com puted as under the agreem ent, shall a t no tim e be low er th an current prices to buyer. Provision is m ade fo r a d ju stm e n t of prices to bu y er in case se lle r sh all k n o w in g ly charge any other custom er low er prices th an those specified in the agreem ent. E xpori aiiovrances to seller are provided fo r such tin p late J i ? 11* be usA d b blJy e r in th e m a n u f a c tu r e of c a n s e x - Is ia n d s )^ 10111 ^b e U n ite d S ta te s (including^ th e H a w a iia n F o r seller's operating convenience, th e buyer agrees to a c cept delivery d u rin g Nov. and Dec. of am o u n ts in excess of current requirem ents. Paym ents for certain coated products shipped d u ring Nov. to June, Inclusive, are p erm itted to be postponed "for th e p e rio d s a n d to th e e x te n t specified in th e agreem ent. In 1937 s a le s to A m e ric a n C an Co. a m o u n te d t o a p p ro x i m a te ly $57,000,000. Subsidiaries: Principal m anufacturing and fab ricatin g sub sidiaries are C arnegie-Illinois Steel Corp. (see below ), T en n e sse e Coal, Iro n &. R .R . Co. (see a p p e n d e d s t a te m e n t ) , a n d C olum bia S teel Co. (see below ), th e se th re e c o m p an ies b e in g m an u fa ctu re rs in d ifferen t p a rts of th e U nited S ta te s of a wide v ariety of iron and steel products. O ther im portant su b sid ia rie s a re : N a tio n a l T ube Co., w h ich m a n u fa c tu re s steel tu b in g and p ip e; A m erican S teel & W ire Co. of N. J., w hich m a n u fa c tu re s w ire rods, w ire, w ire p ro d u cts and cold ro lle d s trip ; A m e ric a n B rid g e Co. a n d V irg in ia B rid g e Co., w hich fabricate and erect bridges and various other steel s tr u c tu r e s ; a n d U n iv e rs a l A tla s C e m e n t Co., w h ic h m a n u f a c tu re s cem ent. Oil W ell S upply Co. m a n u fa c tu re s a n d se lls' oil field equipm ent. F e d e ral S hip b u ild in g & D ry D ock Co. op erates a shipyard and dry dock for construction and repair of ste el vessels. C yclone F en ce Co. m a n u fa c tu re s v a rio u s k in d s of fence and m iscellaneous w ire products. C orporation and certain subsidiaries also own all th e capi t a l s to c k of 15 c om m on c a r r ie r ra ilro a d s , a n d a s u b s id ia ry comm on c a rrie r ste am sh ip com pany, Isth m ia n S team sh ip Co. (see below), o p e ra te s a lin e o f s te a m s h ip s in in te r c o a s ta l a n d foreign service carrying products purchased or sold by sub sidiaries as w ell as products for outside shippers (see R ail road and M arine P roperties, below ). Subsidiaries of United States Steel Corporation (As reported in SEC registration statem ent dated M ay 10, 1938) (Percent of voting power held by parent com pany indicated in brackets) A dam s Mining Co. [100% (b )] A gaw am Iron M ining Co. [100% (b )] A lpha Ore Co. [100% (b )] Am bridge Iron M ining Co. [100% (b )] tA m erican Bridge Co. [100% ] A m erican Im provem ent Co. [100% ] {E tna and M ontrose R.R. Co. [100% ] W issahickon B ridge Co. [100% ] tA m erican Steel & W ire Co. of N. J. [*99.820%] (B alance of shares owned by M innesota Steel Co.) C arnegie-Illinois Steel Corp. [*.208 % ] (B alance of sh a re s owned by U. S. Steel Corp.) Carnegie Land Corp. [*38.140%] (Balance of shares owned by U. S. Steel Corp. and C arnegie-Illinois Steel Corp.) H. C. F rick Coke Co. [*11.172%] (B alance of sh a res owned by U. S. Steel Corp. and N ational Tube Co.) G errard Co., Inc. [99.917%] Gerrard Pan-Am erican Ltd. [100%] Jackson Fence Co. [100% (f)] N ew burgh & South Shore Ry. Co. [100% ] Angus L and Co. [100% ( c ) ] A thens L and Co. [100% (c )] {Bessem er & L ake E rie R.R. Co. [100% ] Bessem er-Union Im provem ent Co. [*50% ] (Balance of shares owned by Union R.R. Co.) {Meadville, C onneaut L ake & Linesville R ailroad Co. [50% (a) (b)] B eta Ore Co. [100% (b )] Bishop Iron Co. [100% (b )] Blue E arth Land Co. [100% (c )] B radley T ran sp o rtatio n Co. [100 % ] C entral Radio T elegraph Co. Cam bridge Iron M ining Co. [100% (b )] tCarnegie-Illinois Steel Corp. [*99.792%] (Balance of sh a res owned by A m erican Steel & W ire Co. of N. J.) Apollo Gas Co. [100% ] Bessem er E lectric P ow er Co. [100% (b )] Carnegie Land Corp. [*23.760%] (B alance of sh a res owned by U. S. Steel Corp. and A m eri can Steel & W ire Co. of N. J.) The Conneaut L and Co. [100% ] Carnegie Land Corp. [*38.100%] (Balance of sh a re s owned by A m erican Steel & W ire Co. of N. J. and Carnegie-Illinois Steel Corp.) Carnegie N a tu ra l G as Co. [100% ] Chapin M ining Co. [100% (b )] Chippewa Iron Co. [100% (b )] C larion Iron M ining Co. [100% (b )] Cloquet Iron M ining Co. [100% (b )] tC olum bia Steel Co. [100% ] {Carbon County R ailw ay Co. [100% ] Columbia Iron M ining Co. [100% ] Companhia Meridional de Mineracao [100%] C raw ford Iron M ining Co. [100% (b )] Cum berland Iron M ining Co. [100% (b )] tCyclone Fence Co. i!0 0 % ] {Donora Southern R ailro ad Co. [100 % ] W aukegan Fence & G ate Co. [3 00% (d )] {Duluth, Missabe and Iron Range Ry. Co. [100% ] D uqucsne Iron M ining Co. [100% (b )] {Elgin, Joliet & E a s te rn Ry. Co. [100% ] lW & iM TO W W i!* (,Ij i)'J" - n"" Federal Coke Corp. [100% (b)] [F e d e ra l Shipbuilding & D ry Dock Co. [ 100%J H . C. F rick Coke Co. [*87.857% ] (B alance of sh a re s owned by Am erican Steel & W ire Co. of N. J . and N ational T ube Co.) C um berland Coal Co. [100% (c )] F ra n k lin Township W a te r Co. [100% ] H o ste tte r Connellsville Coke Co. [100% (c )] {Johnstow n & Stony Creek R ailro ad Co. L100%] Sewickley W a te r Co. [100% ] S tan d ard W ater Co. [100% ] G ary L and Co. [100% ] Genoa Iron Co. [100% (b )] G reat N orthern M ining Co. [99.37% ( b n Hem lock L and Co. [100% (c )] Hugo Iron Co. [100% (b )] i Illinois Steel Co. [100% (h )] tls th m ia n Steam ship Co. [100% ] J e n a Mining Co. [100% (c )] K entucky F ire B rick Co. [100% ] Lake Superior Consolidated Iron Mines [ 100% (b )l {Lake Term inal R ailroad Co. fl00% ] L an c aste r iron M ining Co. [ 100% (b )] MOODY'S M A N U A L OF I N V E S T M E N T S 3073 Lebanon Iron M ining Co. [100% (b )] L igonier Iro n M ining Co. [100% (b )] M ichigan L im estone & Chem ical Co. [100% ] Mingo Coal Co. [100% (b )] Mingo Iro n M ining Co. [100% (b )] M innesota Iro n Co. [100% (b )] M innesota Steel Co. [100% (h )] A m erican Steel & W ire Co. of N. J. [*.175% ] owned by U. S. Steel Corp.) (B a la n ce of shares Monessen Iron M ining Co. [100% (b)] M oneta Im provem ent Co. [100% (c )] M onongahela Iron M ining Co. [100% (b )] M orewood Iro n M ining Co. [100% (b )] M ountain Iron Co. [100% (b)] M unhall Iro n M ining Co. [100% (b )] N ational M ining Co. [100% ] tN a tio n a l T ube Co. [100% ] ConnoQuenessing Bridge Co. [100% ] , H . C. F ric k Coke Co. [*.970% ] (B alance of sh a res owned by A m erican Steel & W ire Co. of N. J. and U. S. Steel Corp.) ^M cK eesport Connecting R ailroad Co. [100% ] Shelby L and Co. [100% ] N a tio n a l Tube Co. (Ohio) [100% (d )] Neville Iro n M ining Co. [100% (b )] N o rth ern D evelopm ent Co. [100% (b )] [Oil W ell Supply Co. [100%1 , Com paa Consolidada "Oilwell" Sociedad Annim a Oil W ell Supply Co., L td. [09.981% (d )] Oil W ell Supply Co. of C alifornia [100% (a ) (f)] W ilson-Snyder M anufacturing Corp. [100% ] E rie B all E ngine Co. [100% (d )] ,, ,, W ilson-S nyder C entrifugal Pum p Co. [100% (d )] Oliver Iro n M ining Co. [100% ] C a rtie r M ining Co., Ltd. [100% (a) (d )] Stephenson Iro n M ining Co. [53.875% (a) (d )] Pencoyd Iro n M ining Co. [100% (b )] P e nnsylvania & L ake B rie Dock Co. [77.896%] Piloto M ining Co. [85% (c)] [100% ] P ittsburg, B essem er & L ake E rie R.R. Co. [57.295% (b )] P ittsb u rg h & C onneaut D ock Co. [100% ] Pittsburgh Limestone Corp. [100%] SYqungstown & N orthern F..R. Co. [100%]. f P ittsb u rg h Steam ship Co. [100% ] P ittsb u rg h Supply Co. [100% ] P ro cto r W a te r & L ig h t Co. [100% ] R a th b u n Iro n M ining Co. [100% (b )] S aranac Iron M ining Co. [100% ( b ) ] ` Scully Steel P ro d u c ts Co. [100% ] Seventy-one B roadw ay Corp. [100%] Sharon Coal & Lim estone Co. [100% ] Shaw Iro n Co. [99.94G% (b )] Som erset Iro n M ining Co. [100% (b )] Spruce M ining Co. [100% (b )] `S ta n d ard Fence Co. [100% ] N orthw est Fence & W ire W orks [100% (d)] fT ennessee Coal, Iron & R ailroad Co. [99.998%] Birmingham Southern R ailroad Co. [100% ] C hickasaw Shipbuilding & C ar Co. [100% (g )] Fairfield Steel Co. [100% (b )] T ennessee L and Co. [100% ] V irginia B ridge Co. [100% ] T ro tte r W a te r Co. [100% ] Union R a ilro a d Co. L10Q%] B essem er-U nion Im provem ent Co. [*50% ] (B alance of shares owned by B essem er & Lake E rie R.R. Co.) Union Supply Co. [100% ] U nited S ta te s Coal & Coke Co. [100% ] U nited S ta te s F uel Co. [100% ] `United S tates Steel Corp, (Del.) [100%] tU n ited S ta te s Steel P ro d u cts Co. [100% ] Com paa de M aestranzas y Galvanizacin [99.889% (a) (c)] Isth m ia n Steam ship Co., Ltd. [100% (a )] U nited Supply Co. [100% ] tU n iv ersal A tlas C em ent Co. [100% ] A tlas L um nite Cement Co. [86.667%] Hannibal C onnecting R ailroad Co. [100% ] [N ortham pton and B a th R ailroad Co. [100% ] U niversal E xplo ratio n Co. [100% ] SConnellsville & M onongahela Ry. Co. [100% (e )] W estm oreland Iro n Mining Co. [100% (b )] SYoughiogheny N orthern R ailw ay Co. [100% (e)J These companies are wholly owned subsidiaries but ownership Is divided a s Indicated, t See description below, t See appended statem ent. I F o r sta te m en t, see Mooelv's R ailro ad M anual. (a ) N o t consolidated in th e corporation's consolidated balance sh eet; the aggregate investments in these companies are not significant in respect of (1) the assets they rep resen t and (2) the sales of operating revenues of such companies. (b) Conducts no business other titan the ownership of property leased to, or subject to operation under agreem ent by, subsidiaries of the Corporation. (c) Conducts no business ; owns property not presently operated. (d) Conducts no business; owns assets of no m aterial signifi cance. (e) Conducts no business other than the ownership of property leased to a non-affiliated company. (f) Conducts no business; owns no property. (g) Conducts no business other than the ownership of property leased to its parent and to non-affiliated companies. (h) Conducts no business; assets consist chiefly of indebtedness from another subsidiary. N ote; Corporation or some one of its subsidiaries also owns a substantial percentage, but not exceeding 50% in any case, of th e voting stock of each of 12 o th er corporations, 5 of w hich own or operate iron ore properties. The corporation and a sub sidiary also own a controlling stock interest in 4 inactive cor porations, no one of which is of m aterial significance in relation to the total enterprise represented by the corporation and its subsidiaries A m erican B ridge Co.: O p erates e ig h t f a b ric a tin g p la n ts located as follow s: A m bridge, P ittsb u rg h and Pencoyd, Pa.; Gary. Ind.; E lm ir a H e ig h ts , N. Y.; T renton, N. J .; Toledo, O., and M inneapolis, Minn. F a b rica to rs and erecto rs of steel stru c tu re s of a ll classes, p a rticu la rly bridges, buildings, rail road turntables, radio tow ers, transm ission tow ers, su b sta tions and com ponent p a rts; also m anufacturers of barges, electric (H eroult) furnaces, roadw ay guards and spelter and lead pans. A m erican S te el & W ire Co. of N. J .: M a n u fac tu rers of w ire and w ire products of all kinds--w ire fences, steel posts, n e t ting, barbed wire, w ire rope, electrical w ires and cables, rail bonds, nails, tacks, bale ties, hoops, m anufacturing w ires, cold rolled strip steel, springs, concrete reinforcem ent, w eld ing wire, aerial tram w ays, USS stainless and h eat-resistin g alloy steels. P rin c ip a l p la n ts lo cated a t C leveland, O.; D onora, P a.; Jo lie t, 111.; W o rc e s te r, M ass.; W a u k e g a n , 111., a n d D u lu th , M inn. In Nov., 1937, c o m p a n y m ad e a 3500,000 lo a n to R e y n o ld s S p rin g Co. (d e ta ils in s t a te m e n t of l a t t e r com pany, se e g e n eral index). C a rn e g ie -Illin o is S te el C orp.: O rg a n ize d in Oct., 1935, a s successor to C arnegie S teel Co. and acquired by purchase or lease su b s ta n tia lly a ll th e p ro p e rties of Illin o is Steel Co. (see appended statem ent for fu rth er details). In addition C lairton B y -P ro d u c ts Co. an d L o ra in S te el Co. also w ere m erg ed a t tim e of o rg an izatio n of C arnegie-Illinois Steel Corp. As of J u n e 1, 1936, A m e ric a n S h e e t & T in P la te Co. (U. S. S te e l Corp. subsidiary) w as merged. The p la n ts of C a rn eg ie-Illin o is Steel Corp. have ap p ro x i m ately 75% of the to ta l ra te d a n n u al p ig iron capacity and ap p ro x im ately 77% of th e to ta l ra te d a n n u al steel Ingot c a p a c ity of a ll th e U. S. S te e l Corp. s u b s id ia rie s . T h e m o re im portant m anufacturing plants of C arnegie-Illinois Steel Corp. a re lo c a te d a t G ary, In d .; S o u th C hicago, 111.; in a n area n ear P ittsb u rg h , Pa., and in the M ahoning V alley in Ohio. C olum bia Steel Co.: D istrib u to rs in Pacific C oast te rrito ry for products of all the m anufacturing subsidiaries of the U nited S tates Steel Corp. W orks located as follow s: Ironton w orks, Ironton, U tah; P itts b u rg w orks, P ittsb u rg , Cal.; T or rance w orks, Los A ngeles, Cal.; Pacific w orks, San Francisco, Cal. M anufacturers of rolled steel products In various form s in cluding shapes, bars, tin plate, black and galvanized sheets, autom obile, en am elin g and cold rolled sh eets; w ire products, including w ire fence, barbed wire, m anufacturing w ires, spring w ire, w ire rope and w ire strand, w ire springs and nails; also steel castings. C yclone F e n c e Co. an d S ta n d ard F ence Co.: T hese su b sid i a rie s h a v e w o rk s in W a u k e g a n a n d De K a lb , 111.: C leveland, O.; G reensburg, Ind.; T ecum seh, M ich.; O akland, Cal., an d P o rtlan d , Ore., and m a n u fa c tu re v a rio u s k in d s of fence an d m iscellaneous w ire products. F ed eral Shipbuilding & D ry D ock Co.: B uilders and re pairers of m erchant ships-- barges, dredges, lighters; also m iscellaneous heavy m achine w ork and steel fabrication. O w ns a n d o p e ra te s s h ip y a rd p ro p e rty c o m p risin g 159 a c re s a t K earny, N. J. Isthm ian Steam ship Co.: O w ners and o p erato rs of steam ship lines w ith reg u lar and special services for finished prod ucts and raw m aterials of the m anufacturing subsidiaries of the U nited S tates Steel Corp., and for gen eral m iscellaneous cargo betw een principal A tlantic, Gulf and Pacific Coast ports of the United States, and betw een United S tates ports and th e principal countries of the world. O w ns a n d o p e ra te s 27 o c e a n -g o in g s te a m s h ip s w ith a t o ta l d e a d w e ig h t to n n a g e of 257,97S to n s a n d fre q u e n tly c h a r te r s additional vessels to m eet its requirem ents. Piers a t B rooklyn a n d S ta te n Isla n d , N. Y,, a n d B a ltim o re , Md., lea se d o r u se d under other arrangem ents. N a tio n al T u b e Co.: O p erates p la n ts lo cated in th e P i t ts burg h d istric t, and a t L orain, Ohio, and G ary, Ind. M anufac tu rers of b u tt and lap w elded pipe, direct seam less, ro tary rolled seam less, electric w elded and ham m er welded steel tu b u la r products, sta n d ard pipe, copper-steel pipe, line pipe casing, oil w ell tubing, drive pipe, ro tary drill pipe, g alv an ized and special dipped and coated pipe, D uroline (cem ent lined) pipe, line poles, tro lley poles, couplings, cylinders, boiler tubes, seam less m echanical tubing, a irc ra ft tubing, seam less alloy tu b in g and USS stainless and h eat-resistin g pipe and tubes. Oil W ell S upply Co.: O perates 5 p la n ts in P en n sy lv an ia, New York and O klahom a fo r the m anufacture of certain oil field m achinery and equipm ent. Also o p erates 6 field shops a n d 87 field sto re s, lo c a te d in 16 s ta te s a n d one in C a n a d a f o r servicing custom ers and d istrib u tin g product^, including prod ucts of affiliated and non-affiliated companies. P itts b u rg h Steam ship Co.: T his is th e p rin cip al subsidiary engaged in tra n s p o rtin g th e products of m ining subsidiaries on the G reat Lakes. Com pany carries iron ore and lim estone southbound, and a t tim es coal northbound, betw een the upper L ake Superior ports and th e low er L ake M ichigan and L ake E rie p o rts. O w ns 69 c a rg o ste a m s h ip s (426,138 g ro ss to n s ) ; 4 a d d itio n a l s te a m s h ip s w ith a n a g g r e g a te to n n a g e o f 32,900 g ro s s to n s w e re e x p ec te d to be in o p e ra tio n in 1938. A lso ow ns 6 b a rg e s (25,717 g ro s s to n s). Scully Steel P ro d u cts Co.: O perates group of extensive w arehouses located in stra te g ic m an u fa ctu rin g and shipping centers to fa cilitate prom pt service. Sellers and distributors of steel products direct from w arehouse stocks. U nited S ta te s Steel P ro d u c ts Co.: D istrib u to rs fo r ex p o rt of all products of the m anufacturing subsidiaries of the U nited S ta te s Steel Corp. M a in ta in s b ra n ch offices, re p re se n tativ es and correspondents in m any foreign countries. U n ite d S ta te s S te el C orp. (D e l.): On J u n e 14, 1933, th e U nited S ta te s Steel Corp. (of D elaw are) w as incorporated under D elaw are law s as a subsidiary of the New Jersey cor poration for the purpose of consolidating non-operating real e s ta te p ro p e rtie s ow ned b y l a t t e r 's su b s id ia rie s in v a rio u s S ta te s. E ffec tiv e J a n . 1, 1938, a n a r ra n g e m e n t w a s m ade fo r tile purpose of effecting closer coordination of the operations of the principal iron and steel m anufacturing and raw m aterial p ro d u c in g su b s id ia rie s of U n ite d S ta te s S te el Corp. (N. J .) b y m eans of supervisory contracts entered into betw een such subsidiaries and U nited S ta te s Steel Corp. (Del.). T his cor poration has its headquarters in P ittsburgh. J by the sub its to sources m ganese ore, nstitutes the ad is also the oacity of the ately 37% of id to T o ta l an Production :ity Y ear to 1. 1 Dec. 31 % 33.6% 33.1 35.9 37.2 id production, tessemer steel city and profoundries, for States is not -.he m a n u f a c ) a w id e field :h c u s to m e r s ars, can p ro tilities, minitractors and ell as indus:y cu sto m ers C arn e g ie tion, in 1937 m ately $57,, the largest liaries. C er es m anufacrenerally are ind sold by ae fo llo w in g ted S e p t. 22, seller) and rees to buy both incluie f o llo w in g that quanding buyer's 1 y e a r 1936, md its posJ a n . 1, 1936 00,000 u n its med period, :lusive, 65% i mill prodver shall be ite requirelate so used six m onths' to seller. i shipm ents 50.000 u n its , epting duricy in addi- purchased jstom ers of no tim e be s made for know ingly se specified :h tin plate if cans ex- Haw aiian Trees to acn excess of Afl n r n r l i i r i f a Subsidiaries o f U nited S tates Steel C orporation (As reported in SEC reg istra tio n s ta te m e n t dated M a y 10, 1938) (Percent of voting power held by parent company indicated in tor& ckG ts ) A d a m s M ining Co. [100% (b )] A g aw am Iron M ining Co. [100% ( b )] A lp h a Ore Co. [100% (b) ] Ambridge Iron M ining Co. [100% (b) 3 tAm erican Bridge Co. [100%] A m erican Im p ro v e m e n t Co. [10 0 % ] E tn a a n d M o n tro se R .R . Co. [1 0 0 % ] W issahickon Bridge Co. [100% ] American Steel & W ir e Co. of N. J. [*99.820% ] ( B a la n c e of shares owned by M innesota Steel Co.) Carnegie-Illinois Steel Corp. [*.20S%] (Balance of shares owned by U. S. Steel Corp.) Carnegie Land Corp. [*38.140%] (Balance of shares owned by U. S. Steel Corp. a n d C a rn e g ie H llin o is Steel C orp.) H . C. F r ic k Coke Co'. [*11.172% ] (B a la n c e of s h a r e s owned by U. S. Steel Corp. a n d N a tio n a l T u b e Co.) ( r e n a r d Co., Inc. [99.917% ] G e r ra r d P a n - A m e r i c a n L td. [ 100 % ] Jack so n Fence Co. [100% ( f l] N e w b u rg h & South S h ore Ry. Co. [ 1 0 0 % ] A n g u s L a n d Co. [100% ( c ) ] A thens L and Co. [100% (c)] c o f* 5 0 % ] (Balance of shares owned by Union R.R. Co.) Meadville, C o n n eau t L ak e & Linesville R ailro ad Co. [50% (a) (b)] B e t a Ore Co. [100% ( b ) ] Bishop Iron Co. [100% ( b )] Blue E a rth Land Co. [100% (c)] B rad ley T ran sp o rtatio n Co. [100% ] C entral R adio T e le g ra p h Co. C am bridge Iro n M ining Co. [100% (b )] tCarnegie-Illinois Steel Corp. [*99.792%] (B alance of s h a re s owned by A m erican Steel & W ire Co. of N. J.) Apollo Gas Co. [1 0 0 % ] Bessernd- E lectric P o w er Co. [100% (b )] Carnegie Land Corp. [*23.760%] (B a la n c e of s h a r e s ow ned by U. S. Steel can Steel & W ire Co. of N. J.) The Conneaut L an d Co. [100% ] Carnegie Land Corp. [*38.100%] (Balance of shares owned by American Corp. Steel and Anieri& W ir e Co. of N. J. and Carnegie-Illinois Steel Corp.) Carnegie N a tu ra l Gas Co. [100% ] Chapin M ining Co. [100% (b) ] Chippewa Iron Co. [100% (b )] Clarion Iron M ining Co. [100% ( b ) ] Cloquet Iron M ining Co. [100% (b )] fC olum bia Steel Co. [100% ] C arbon C o unty R a i lw a y Co. [1 0 0 % ] Columbia Iron M ining Co. [100% ] Companhia Meridional de Mineracao [100%] C raw ford Iron M ining Co. [100% (b )] Cumberland Iron M ining Co. [100% (b )] tCyclone Fence Co. [100% ] gDonora Southern R a ilro a d Co. [100% ] W aukegan Fence & G ate Co. [100% (d )] 5D uluth, M issabe a n d I ro n Range,,.Ryrj'Go, [1 0 0 % ] TJiTd'ffcsn^ ( b ) ] . -- i mimu, SElginl _.Jroliet & E a s t e r n R y. Co. [ 1 0 0 % ] Federal Coke Corp. [100% (b)] D r y Dock Co. (B a la A m erican Steel & W ire Co. of N. J. C um berland Coal Co. [100% ( c ) ] F ra n k lin T ow nship W a te r Co. [1 0 0 % ] H o s te tte r Connellsville Coke Co. [100% {Johnstown & S tony Creek R a ilro a d Co. Sewickley W a te r Co. [100% ] S ta n d a rd W a te r Co. [100% ] G a ry L and Co. [10 0 % ] G enoa Iron Co. [100% ( b ) ] shares National (c)] L100%] G re a t N o rth ern M ining Co. [99.37% (b )] H em lock L an d Co. [1D0% (c)] H u g o Iron Co. [100% ( b ) ] illlin o is Steel Co. [100% ( b ) ] Isthmian Steam ship Co. [100% ] J e n a M ining Co. [100% (c )] K entucky F ire Brick Co. [100% ] Lake ST Superior Consolidated T'T'tvi i n n i I ro nft nMaines 1[1 0 0 %/ j \( bj)jl owned by Tube Co.) O JJ A jL lM <U J X j L ebanon Iro n M ining Co. [100% (b )] Ligonier Iro n M ining Co. [100% (b )] M ichigan L im esto n e & C hem ical Co. [100% ] Mingo Coal Co. [100% (b )] Mingo Iro n M ining Co. [100% (b )] M innesota Iro n Co. 100% (b )] M innesota SteeJ Co. [100% (h )] A m e ric an Steel & W ire Co. of N. J. [*.175 % ] owned by U. S. Steel Corp.) (Balance of shares Monessen Iron M ining Co. [100% (b )] M o n eta Im p ro v e m e n t Co. [100% (c)] M o n o n g ah ela Iro n M ining Co. [100% ( b ) ] M orewood Iro n M ining Co. [100% ( b )] M ountain Iron Co. [100% (b )] M unhall Iro n M ining Co. [100% (b )] W] N a tio n a l M ining Co. [1 0 0 % ] [N atio n al Tube Co. [100% ] C onnoquenessing B ridge Co. [10 0 % ] H . C. F r i c k Coke Co. [*.970% ] (B a la n c e of s h a r e s owned by A m e ric a n Steel & W ire Co. of N. J. a n d U. S. Steel Corp.) SM cK eesoort C o n n e c tin g R a ilr o a d Co. [1 0 0 % ] S h e lb y L a n d Co. L100 " N atio n al Tube Co. (Ohio) [100% (d )] Neville I ro n M in in g Co. [100% ( b ) ] N o rth e rn D ev elo p m en t Co. [100% (b )] [Oil W ell Supply Co. [100%.] , '^4C om pa-nia^C onsolidada''il;" OilweU" Sociedad A n o n im a Oil W ell Supply Co., Ltd. [99.981% (d )] Oil W ell S u p p ly Co. of C alifo rn ia [100% (a ) ( f ) ] W ilson-Snyder M anufacturing Corp. [100%] E rie B all E n g in e Co. [100% ( d )] W ilson-S nyder C entrifugal P u m p Co. [100% (d )] Oliver Iro n M in in g Co. [100% ] C a rtie r M ining Co., Ltd. [100% (a) (d )] S te p h e n s o n I r o n M in in g Co. [53.875% (a ) ( d ) ] Pencoyd Iro n M ining Co. [100% (b )] P e n n sy lv a n ia & L a k e Brie Dock Co. [77.896% ] PiToTcTMThing Co. t.8b % ( c n " ~ [100%] SP.jttsbu^ PittsbflrglT _ -------------- ---- . P i t t s b u r g h L im e s to n e Corp. [TO0 % ] Y o u n g s to w n & N o r t h e r n R .R . Co, * , . . [Fm tiFurg^^ P i t t s b u r g h S u p p ly Co. [1 0 0 % ] P ro c to r W a t e r & L ig h t Co. [10 0 % ] R a th b u n Iron M ining Co. [100% (b )] S a ra n a c Iron M ining Co. [100% (b )] [Scully Steel P r o d u c ts Co. [1 0 0 % ] Seventy-one Broad-way Corp. [100%] S h a ro n Coal & L im estone Co. [100% ] S haw Iro n Co. [99.94G% (b )] S o m e rse t Iro n M in in g Co. [100% ( b ) ] Spruce M ining Co. [100% (b )] [S ta n d a rd Fence Co. [100 %] Northwest Fence & W ire W orks [100% (d)] T ennessee L a n d Co. [100% ] V irg in ia B rid g e Co. [10 0 % ] T ro tte r W a te r Co. [100% ] Co. [*50% ] (B alance of shares owned by Bessemer & Lake Erie R.R. Co.) Union Supply Co. [100% ] U nited S ta te s Coal & Coke Co. [100% ] U n ited S ta te s F u e l Co. [100% ] [United States Steel Corp. (Dei.) [100%] [U nited S ta te s Steel P ro d u c ts Co. [100% ] Compaa de M aestranzas y Galvanizacin [99.889% (a) (c)] Is th m ia n S te a m sh ip Co., Ltd. [100% ( a ) ] U n ited S upply Co. [100% ] [ U n iv e r s a l A tla s C e m e n t Go. [ 1 0 0 % ] A tlas L u m n ite Cem ent Co. [86.067%] H annibal C onnecting R ailroad Co. 100%] N o r th a m p to n a n d B a th R a ilr o a d Co. [1 0 0 % ] U n iv e rs a l E x p l o r a t io n Co. [1 0 0 % ] Connellsville & M onongahela Ry. Co. [100% (e )] W estm o relan d Iro n Mining Co. [100% (b )] Toughioghe,ny Norther^ |^aily?ajt,,Co.,,XQQ,%rl,(e) 1 gs e"cb'im[)antes't're^wHal y' own ecU'sbsifl ia`r'1 b u t owne rship is divided as indicated. 1 See description below. j . n ___. . ___ V i 1 JLl\ y H i'l' LJhj road turntables, radio t tions and com ponent pt electric (H eroult) furnac lead pans. A m erican S teel & W ire and wire products of all ting, barbed wire, wire r bonds, nails, tacks, bah cold rolled strip steel, si ing wire, aerial tram w a alloy steels. Principal plants locat J o l i e t , 111.; W o r c e s t e r , . Minn. In Nov., 1937, com pan; S p r in g Co. ( d e t a il s in st eral index). C araegie-U linois Steel s u c c e s s o r t o C a r n e g i e St< lease substantially all th appended statem ent for f B y - P r o d u c ts Co. a n d Loi tim e of organization of J u n e 1, 1936, A m e r i c a n Sh subsidiary) w as merged. The plants of Carnegh m ately 75% of the total app ro x im ately 77% of t c a p a c i t y o f a l l t h e U. S. im portant m anufacturing Corp. are located at Gai area near P ittsburgh, Pi Ohio. C olum bia S te el Co.: Di for products of all the U nited S tates Steel Corp. w orks, Ironton, U tah; Pit ranee works, Los Angeles Cal. M anufacturers of rolled eluding shapes, bars, tin automobile, enam eling an i n c l u d i n g w i r e f e n c e , b; spring wire, wire rope a nails; also steel castings. C yclone F en ce Co. and : aries have w o rk s in W au O.; G r e e n s b u r g , I n d .; Te> P ortland, Ore., and m anui m iscellaneous wire produc Federal Shipbuilding & pairers of m erch an t shir m iscellaneous heavy maci Owns and operates ship a t K e a r n y , N. J. isth m ia n S team sh ip Co. ship lines w ith regular an u c ts a n d r a w m a te r ia ls of the United States Steel U cargo betw een principal A of the United States, and t principal countries of the O w n s a n d o p e r a t e s 27 ot d e a d w e i g h t t o n n a g e of 25 additional vessels to m eet a n d S t a t e n I s l a n d , N. Y., : under other arrangem ents. N a tio n a l T u be Co.: Ope burgh district, and at Lon: tu re rs of b u tt and lap wi rolled seam less, electric 1 tubular products, standard casing, oil well tubing, dr ized and special dipped a lined) pipe, line poles, troll tubes, seam less m echanica alloy tubing and USS stai tubes. Oil W ell S u p p ly Co.: O New York and Oklahom a j field m ach in ery and equipi a n d 87 field s to r e s , l o c a t e d servicing custom ers and dir MOODY'S ANALYSES OP IN V ESTM EN TS AND SECURITY RATING BOOKS JOHN MOODY RAILROAD SECURITIES MAURICE N. BLAKEMORE, - Managing Editar Editorial Board: J o h n S herm an P orter P aul Clay D r. M ax W inkler W inthrop C. S wain W . B arrett B rown FIFTEENTH YEAR OAKLAND OCT '92A '-'R E E L !B R A -' ' MOODY'S INVESTORS SERVICE 33 NASSAU STREET, NEW YORK PHILADELPHIA: 1224 Real Estate Trust Bldg. BOSTON: 141 Milk Street CHICAGO: 809 First Nat. Bank Bldg. LOS ANGELES 613 Pacific Mutual Bldg. London: FREDC. C. MATHIESON & SONS, 16 Copthall Ave., E. C. 2. Zurich: A. BRUECHER, Tuggenerstrasse 14. MOODY'S A N A L Y S E S OF I N V E S T M E N T S A ssets Investments: Road and equipment----Investments in affil. c o s.. Comparative Balance Sheet, as of December 31 1923 1922 1921 1920 $2,225,244 37,000 $2,216,155 37,000 $2,209,492 37,000 $2,217,193 37,000 1919 $2,027,642 1918 $1,999,192 Current Assets: Loans and bills rec.......... Accounts and bal. rec. . . . Other current assets----Materials and supplies.. 19,209 225 57,891 110 113,517 ' 29,449 890 45,167 51 107,420 15,275 875 50,492 179 128,782 16,766 1,150 49,459 55 130,865 215,626 151,743 Unadjusted Debits: Discount on capital stock Other unadjusted debits.. Total assets ................ 251,245 59,079 $2,763,520 251,245 56,561 $2,743,938 251,245 39,065 $2,732,405 251,245 39,000 $2,742,733 259,213 $2,502,481 259,996 $2,410,931 Liabilities Capital stock ...................... Non-neg. debt to aifil. c o s... $2,250,000 258,317 $2,250,000 263,512 $2,250,000 $2,250,000 $2,250,000 $2,250,000 Current Liabilities: Loans and bills payable.. Accts. and wages payable Other current liabilities.. 36,627 23 3,186 26,754 66 250,750 26,266 19 70,976 216. 53,063 44,340 Unadjusted Credits: Accrued depreciation . . . . Other unadjusted credits. 6,320 135,513 25,358 4,400 134,272 24,655 122,510 24,212 132,683 22,155 ; 37,007 23,483 Corporate Surplus: Profit and loss--balance Total liabilities .......... 51,362 S2,763,520 37,093 $2,743,938 5S,64S $2,732,405 266,703 $2,742,733 162,411 $2,502,481 93,108 $2,410,931 Capital Stock: Uintah Ry. Co. stock: Authorized and outstanding, $2,250,000: par $100. No bonded^ debt. Practically entire issue is controlled bv Barber Asphalt Co., a subsidiary of the General Asphalt Co. Dividends paid as follows: 1908, 1VS%; 1909, 7%; 1910, 3M%; none in 1911; 1912, 3U-%; 1913, 7^% ; 1914, 1U%; 1915, 3%; 1910, 09c; 1917, 0^% ; 1918, 694%; none thereafter to Dec. 31, 1923. UNION RAILROAD COMPANY History: Incorporated under Pennsylvania laws, July 2, 1894, and first opened in 1896. Owns entire capita] stock of Monongahela Southern R.R. A majority of the stock is owned by the United States Steel Corporation. Line extends from North Bessemer, Pa., to East Pittsburgh, 8.04 miles (leased from Bessemer & Lake Erie R.R.); East Pittsburgh to Streets Run, Pa., and Duquesne Junction to Duquesne, Pa., 20.60 miles; Monongahela Junction to Mifflin Junction, Pa., and Clairton Jet. to Wilson, Pa. (leased from Monongahela Southern Railroad), 11.56 miles; at Clairton, Pa., leased from St. Clair Terminal R.R., 5.59 miles; total mileage, including yards, sidings and second track, 286.14 miles. Equipment owned: Locomotives, 139; freight cars, 5,593; passenger cars, 6; service cars, 68. Equipment leased: St. Clair Terminal R.R. Co.; locomotives, 9; freight cars, 27; Monongahela Southern R.R., locomotives, 8. Management: Officers; J. H. Reed, Pres.; R. T. Rossell, Vice-Pres.; G. W. Kepler, Sec. and Treas.; Geo. E. Campbell, Aud., Pittsburgh, Pa.; F. R. McFeatters, General Supt., East Pittsburgh, Pa. Directors: R. T. Rossell, Geo. E. Campbell, J. G. Frazer, G. W. Kepler, W. A. Seifert, Pittsburgh, Pa.; F. R. McFeatters, East Pittsburgh, Pa. Annual Meeting: Second Monday in January. Offic e: Pittsburgh, Pa. Comparative Statement of Income and Profit and Loss, Years Ended December 31 Operating revenues .......... Operating expenses .......... Net rev. from oper.......... Operating ratio .............. Railway tax accruals, e tc .. Ry. oper in com e.......... M iscellaneous oper. incom e. Total oper. income Non-operating income 1923 $12,645,303 9,848,536 2,796,767 77.88% 468,852 2,327,915 1 7 ,0 6 4 2,344,979 1,274,643 1922 $11,184,564 7,912,805 3,271,759 70.75% 268,368 3,003,391 14,468 3,017,859 1,004,313 Income deductions .............. Bal. before fixed chgs. Fixed charges ...................... NET INCOME .................... Disposition of Net Inc.: Appropriations .................... Balance to profit and lo ss.. Bal. at begin, of period. Add: Credits to p. & 1. Deduct: Debits to p. & 1 D iv id e n d s ............................... 1923 153,369 3,466,253 1,037,770 2,428,483 62,412 2,366,071 4,968,510 7,572 165,811 1,000,000 Gross income .......... 3,619,622 4,022,172 Profit and loss--balance... $6,176,342 1922 100,655 3,921,517 1,053,958 2,867,559 145,220 2,722,339 2,958,565 787 Cr 36,819 750,000 $4,968,510 MOODY'S ANALYSES OF INVESTMENTS 1691 A ssets Investments: Road and equipment . . . . Impr. on leased ry. prop. Investments in affil. co s.. Misc. physical property.. Current Assets: C a sh .................................... Special deposits .............. Accounts and bal. rec.. . . Materials and supplies .. Deferred assets .................. Unadjusted debits .............. Comparative Balance Sheet, as of December 31 1923 818,768,072 1,688,692 3,023,154 266,405 2,342,999 125 4,571,762 742,563 83,110 19,467 1922 $18,556,002 1,626,611 3,023,154 265,928 3,394,038 75 1,987,565 656,507 96,560 19,817 Liabilities Capital stock ...................... Funded debt ........................ Current Liabilities: Accts. and wages payable Misc. accounts payable .. Accrued it e m s .................. Deferred lia b ilities.............. Unadjusted Credits: Accrued depreciation . . . Premium on funded debt Other unadjusted credits. Corporate Surplus: Appropriated surplus . . . Profit and loss--balance. 1923 $5,000,000 10,240,000 1,058,328 1,360 149,646 13,979 3,336,701 7,738 855,063 4,667,192 6,176,342 1922 $5,000,000 10,595,000 651,025 1,776 154,825 24,607 2,994,970 8,788 765,S98 4,460,858 4,968,510 Total assets $31,506,349 $29,626,257 Total liabilities .......... $31,506,349 $29,626,257 Equipment Trusts: 1. Union R.R. Co.--Mifflin equipment 1st gold 5s: Authorized, $1,200,000; outstanding, $720,000. Dated Aug. 1, 1910; due $120,000 annually each Aug. 1, to 1930, inclusive. Interest paid F&A 1, at Home Trust Co., Hoboken, N. J., Trustee. ' Coupon, $1,000; registerable as to principal. Secured by a first lien on 15 locomotives and 1,000 steel gondola cars. Legal for S. B. in Ohio; for T. F. in Ky. Company pays normal income tax of 2%. Rating, Aaa 2. Union R.R. Co.--Munhall equipment 1st gold 5s: Authorized and issued, $900,000; outstanding, $750,000. Dated June 1, 1912; due $75,000 annually each June 1, to 1934, inclusive. Interest J&D 1, at Home Trust Co., Ho boken, N. J., Trustee. Coupon, $1,000; registerable as to principal. Secured by a first lien on 1,000 steel gondola cars. Legal for S. B. in Ohio; for T. F. in Ky. Company pays normal income tax of 2%. Rating, Aaa 3. Union R.R. Co.--Rankin equipment gold 5s: Authorized, $900,000; outstanding, $630,000. Dated May 1, 1917; due $45,000 annually to May 1, 1937. Interest paid M&N 1, at the Union Trust Co., Pittsburgh, Pa., Trustee. Secured on 750 steel hopper cars, costing $1,557,293. All held in treasury of the U. S. Steel Corp. Legal for S. B. in Ohio; for T. F. in Ky. Company pays normal income tax of 2%. Bonded Debt: 1. Union R.R. Co. 1st gold 5s: Authorized and outstanding, $2,000,000. Dated Sept. 1, 1896; due Sept. 1, 1946. Interest paid M&S 1, at Fidelity Title & Trust Co., Pittsburgh, Pa., Trustee. Coupon, $1,000. Secured by a first lien on 30.57 miles of main track from East Pittsburgh to South Duquesne, Pa., and 76.88 miles of sidings. Legal for S. B. in Me.; for T. F. in 111., Ky. Free of Pennsylvania State tax. Company pays normal in come tax of 2%. Rating, Aaa 2. Union R.R. Co. gold debenture 6s: Authorized, $12,000,000; outstanding, $5,900,000. Dated June 15, 1920; due Sept. 1, 1946. Interest J&D 15, at United States Trust Co., New York, Trustee. Registered. All held in trea sury of the U. S. Steel Corp. Not legal for S. B. in states with restrictions; legal for T. F. in Ky. Free of Pennsyl vania State tax. Company does not pay normal income tax. Capital Stock: Union R.R. Co. stock: Authorized and outstanding, 100,000 shares ($5,000,000), increased from 40,000 shares ($2,000,000) in 1920; par $50. A majority of the stock is owned by the United States Steel Corpora tion. Dividends paid as follows: 1904, 60%; 1905, none; 1906, 10%; 1907 to 1911, none; 1912, 20%; 1913, 20%: 1914, 50%; 1915, 20%; 1916, 30%; 1917, 10%; none in 1918, 1919, 1920; 1921, 10%; 1922, 15%; 1923, 20%. MONONGAHELA SOUTHERN RAILROAD COMPANY (Operated under lease by the Union Railroad Co.) History: Incorporated Feb. 5, 1897, in Pennsylvania. Leased to and operated by the Union R.R. Co., lease dated June 1, 1906, for 999 years, by the terms of which the Union R.R. Co. is to maintain line in good condition and pay interest on bonds, taxes-, etc. Line of road: Monongahela Junction to Mifflin Junction, and Wilson, Pa., 11.56 miles. Second track, 11.28 miles. Sidings, 35.33 miles. Standard gauge. Rail, 100 to 130 lbs. Management: Officers: J. H. Reed, Pres.; R. T. Rossell, Vice-Pres.; G. W. Kepler, Sec. and Treas.; G. E. Campbell, Aud., Pittsburgh, Pa. Directors: J. H. Reed, R. T. Rossell, G. E. Campbell, J. G. Frazer, W. A. Seifert, G. W. Kepler, Pittsburgh, Pa.; F. R. McFeatters, East Pittsburgh, Pa. Annual Meeting: Second Monday is January, at Pittsburgh, Pa. General Office: 1418 Carnegie Bldg., Pittsburgh, Pa. Income Account, year ended December 31, 1923: Non-operating income, $300,000; fixed charges, $300,000; net income, see terms of lease above. Comparative Balance Sheet, as of December 31 A ssets Investments : Road and equipment.. . . Misc. physical property.. 1923 $8,644,483 12,371 1922 $8,639,243 12,421 Liabilities Capital s to c k ........................ Funded debt ........................ Non-neg. debt to affil. cos.. 1923 $3,000,000 5,500,000 168,913 1922 $3,000,000 5,500,000 153,913 Current Assets: C a sh .................................... Other current assets........ 15,012 75,125 3,618 75,075 Current Liabilities: Accts. and wages payable Interest matured ............ Accrued items ................ 2,953 125 75,000 1,346 75 75,000 Corporate Surplus: Appropriated surplus . . . Profit and loss--balance. 3,439 D 3,439 3,125,218 D 3,125,195 Total a s s e t s .................. $8,746,991 $8,730,357 Total liabilities .......... $8,746,991 $8,730,357 MOODY'S MANUAL OF INVESTMENTS AMERICAN AND FOREIGN RAILROAD SECURITIES JOHN SHERMAN PORTER, Editor-in-C hief Editorial Board: Walter F. Hahn Allyn P. Evans Joseph A . D ittrich William G. Lyman W. Barrett Brown Nelson Schaenen 1 9 3 5 PubG Library Sc? 1935 C**"r M nh*ili \j: . ! J, MOODY'S INVESTORS SERVICE 65 BROADWAY, NEW YORK PHILADELPHIA BOSTON CHICAGO Stock Exchange Bldg. 75 Federal St. 105 W. Adams St. LOS ANGELES PITTSBURGH Hollingsworth Bldg. Oliver Bldg. SAN FRANCISCO Russ Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD. KING WILLIAM STREET HOUSE, ARTHUR STREET, E.C.4 1698 MOODY'S A ppropriations ....................... Balance to profit and loss. Balance a t begin. of period. Adddd : Credits to p. & 1. D e d u c t; D eb its to p. & 1. *1934 4,551 19,513 D 30,886 20,203 75,595 Profit and loss--balance. .. D $86,278 MANUAL 1933 7,333 D 1,121 D 31,375 3,192 1,582 D $30,886 A ssets ; Invest, in road, equip., etc. C urrent A ssets: M aterials and supplies. .. O th e r c u rre n t a s s e t s ......... U n a d ju s te d d e b its ................ Comparative Balance $1,882,634 1933 $1,907,521 16,171 56,103 32,779 41892 33,312 30,592 76,408 31,981 Total $2,029,579 $2,079,814 OF INVESTMENTS 1932 1,007 1,611 D 32,313 ......... 673 1931 3,177 12,060 D 25,829 607 19,161 D 331.375 D $32,313 Sheet, as of Dec. 31 L ia b il it ie s : Capital s t o c k .................................. Funded debt .................................. Construction g rants ..................... Current and Accrued L iabilities: C urrent liabilities ..................... U nadjusted credits ..................... A ppropriated surplus ................. P rofit and loss.........I ................... Total ........................................ 1930 10,938 D 11,583 D 12,304 13 1,955 D $25,829 1934 $775,000 721.860 1,764 28,504 209,674 379,055 D 86,278 $2,029,579 1929 2,549 11,679 D 19,329 248 4,902 D $12,304 As reported. 1933 $775,000 673,500 1,764 82,545 203,386 374,505 D 30,886 $2,079,814 R.F.C. Loans: On Dec. 31, 1934, there were authorized and outstanding, 91,360 loans from R.F.C. Bonded Debt: Sumpter Valley Ry. Co. fir st gold 6 s, due serially to 1 9 4 2 : A u thorized -- 650,000; outstanding, Jan. 2, 1935, 544,500; retired, 105,500. D ated-- Jan. 1, 1927; due each Jan. 1, as follows: 15,000, 1936 to 1940, inch; 20,000, 1941, and 450,000, 1942. In terest-- J&J 1 at office of Trustee. Coupons due Jan. and Ju ly 1, 1933 and Ja n . 1,1934 paid M ay 29, 1934. S u b seq u en t coupons paid w h e n due. T rustee-- Portland Trust & Savings Bank, Portland, Ore., Successor Trustee. D enom ination-- Coupon, $ 5 0 0 and $ 1 ,0 0 0 ; registerable as to principal. Callable--At 103 on any interest date on 30 days' notice; if called in part, calls shall be by lot, latest maturity first. S in k in g F und--No provision for sinking fund. G uaranty--Unconditionally guaranteed as to principal and interest by David Eccles Co., Ogden, Utah. S ecu rity-- First closed mortgage and charge on all fixed assets and certain personal property, now owned or hereafter acquired, including rights-of-way, real es tate, buildings, plants and equipment, franchises, etc. Company agrees to expend not less than 15% of entire gross income for maintenance of railroad, equipment and rolling stock. P urpose-- Issued to refund first 6s, due Jan. 1, 1927. T ax S tatu s-- Company pays normal income tax up to 2%. O ffered-- ($650,000) in Feb., 1927 by Lumbermen's Trust Co., Portland, Ore., to yield 6.15% to maturity. Note: There was outstanding, Dec. 31, 1934, a promissory note for 71,000 in favor of Oregon Lumber Co.; dated Jan. 1, 1927; due Jan. 1, 1943; interest 7% payable semi-annually. Capital Stock: 1. Sum pter V alley Ry. Co. sto ck : Authorized, $1,000,000; outstanding, $775,000; in treasury, $35,000; par $100. No dividends paid from 1921 to 1923, inclusive; 1924, 3%; none thereafter. Of the outstanding stock approximately 82% owned by David Eccles Co. Number of stockholders, Dec. 31, 1934, 16. Stock transferred and registered at company's office. UNION RAILROAD COMPANY History: Incorporated under Pennsylvania laws, July 2, 1894, and first opened in 1896. Owns entire capital stock of Monongahela Southern R.R. Line extends from North Bessemer, Pa., to East Pittsburgh, 8.04 miles (leased from Bessemer & Lake Erie R.R.) ; East Pittsburgh to Streets Run, Pa., and Duquesne Junction to Du quesne, Pa., 19.70 miles; Monongahela Junction to Mifflin Junction, Pa., and Clairton Jet. to Wilson, Pa. (leased from Monongahela Southern Raiiroad), 11.51 miles; at Clairton, Pa., leased from St. Clair Terminal R.R., 5.50 miles; total mileage, including yards, sidings and second track, 298.63 miles. Standard gauge; rail, 80 to 130 lbs. Equipment owned: Locomotives, 129; freight cars, 5,347; service cars, 73. Equipment leased: St. Clair Terminal R.R. Co., locomotives, 7; Monogahela Southern R.R., locomotives, 8. Average number of employees, year 1934, 1,491. Control: Controlled by United States Steel Corp. through stock ownership. M anagem ent: Of f ic e r s : R. T. Rossell, Pres., Pittsburgh, Pa.; W. S. McAbee, Vice-Pres. and Gen. Supt., East Pittsburgh, Pa.; G. W. Kepler, Sec. and Treas.; Geo. E. Campbell, Aud. and Gen. Frt. Agent, Pittsburgh, Pa.; F. E. Gorby, Supt., East Pittsburgh, Pa.; C. S. Leet, Land Agent, Pittsburgh, Pa. D irectors: R. T. Rossell, Geo. E. Campbell, J. G. Frazer, G. W. Kpler, W. A. Seifert, E. C. McHugh, Pittsburgh, Pa.; W. S. McAbee, East Pittsburgh, Pa. A n n u a l M e e t in g : Second Monday in January, at Pittsburgh. Of f ic e : 1663 Frick Bldg. Annex, Pittsburgh, Pa. Comparative Statem ent o f Income and Profit and Loss, Years Ended D ec. 31 1934 1933 1932 1931 1930 Operating revenues ............. $3,861,542 $3,690,135 $1,948,951 $4,860.713 $8,844,037 O perating expenses ............. 4,230,898 3,340,899 3,040,172 -4,931,252 7,281,591 Net oper. revenues.. O perating: r a t i o ............... Railway tax accruals, etc.. D 369,356 108.5(1 % 104.852 349,236 0.54% 95,861 D 1,091,221 155.00% 79,547 D 70,539 101.45% Cr 335,646 1,562,446 82.33% 191,531 Ry. oper. income. . . . Mlsc. operating income . . . D 474,208 253,375 D 1,170,768 265,107 1,370,915 2,766 Ry. oper. income . . . N et eq. & j t fac. re n ts. . . D 474.208 334,3,11 253,375 337,793 D 1,170,768 264,916 265.107 586,705 1,373,681 734,841 Net ry. oper. inc.. . . O ther in c o m e ....................... D 139,897 35,594 591,168 44,918 D 905,852 89,043 851,812 114,689 2,108,522 143,012 Gross income ......... itents for leased roads . . . in te re s t on funded debt . . . Miscellaneous charges . . . . D 104,303 479,018 465,312 . 112,976 636,086 472,576 471,313 114,984 D 816,809 463,753 477,313 107,318 966,501 461,769 483,313 384,889 2,251,534 461,693 489,313 167,197 . N et income ............... Appropriations Bai ? Ce 4.t0v. and lass. a t begin, of period. Add: Credits to p & 1 Deduct D ebits to p. % 1. Dividends D 1,161,609 1) 1,161,60 8.426,902 1,118 32,490 250,000 D 422,787 6,700 D 420,4ST 8,883,777 3,090 30,478 D 1,865,193 3,500 D 1,868,693 10,808,186 6,020 61,736 D 363,470 D 363.470 11,445,652 5.018 29.014 250.000 1,133,331 1,133,331 11.080.218 38,577 56,474 750,000 Profit and loss--balance Darned per share . . N um ber of shares $6.983.921 D $11.62 100,000 $8,426,902 D $4.23 100.000 $8.883,777 D $18.65 100.000 $10.808.1 86 r> $3.63 * 100,000 $11,445,652 $11.33 100,000 1929 $11,031,307 7.557,812 3,473,495 68.51 % 373,956 3,099,539 14,098 3,113.637 841,031 3,954,668 163,525 4,118,193 461.608 495,313 197,025 2,964,247 Cr 2.175 2,966,421 9,377,798 47.946 61.947 1,250,000 $11,080,218 $29.64 100.000 MOODY'S MANUAL OF INVESTMENTS 1699 Assets : ^ Road and equipm ent ................. Improv. on leased railw ay prop. Investm ents in affiliated cos. . . . Miscellaneous physical property. Current Assets: Cash .............................................. Demand loans and deposits... Special deposits ........................ Accounts & balance receivable M aterials and supplies ........... D eferred assets ............................ U nadjusted debits ........................ Comparative Balance 1934 $24,805,647 3,568,951 3,023, 04 231,140 1933 $24,281,803 3.565,015 3,023,404 232,440 758,663 337,471 20,198 234,400 582,333 20,471 17,877 1,045,000 895,976 75 298,808 479,605 143,853 17,800 Sheet, as of Dec. 31 L iabilities : C apital stock ................. G overnm ent gran ts ......... Funded debt ........................... Non-neg. debt to affiliated cos.. C urrent -and Accrued Liabilities Accounts and wages payable. A ccrued items ....................... O ther c u rre n t liabilities ......... Accrued depreciation ................. O ther unadjusted credits ......... A ppropriated surplus ................. P rofit and loss-- balance ........... 1934 $5,000,000 14,966 8,080.000 425,126 231,705 124,882 25 7,341,809 660,598 4,238,023 6.983,921 1933 $5,000,000 14,966 8,200,000 425,126 162,633 125,563 75 6,727,236 662,544 4.238,735 8,426,902 Total assets . .. W orking Capital : $33,101,055 $33,983,780 T otal liabilities ................... $33,101,055 $33,983,780 1934, current assets, $1,933,565; c u rre n t and accrued liabilities, $356,612: net current assets, $1,576,953. 1933, cu rren t assets, $2,719,462 ; c u rre n t and accrued liabilities, $288,271 ; net cu rren t assets, $2,431,191. Equipm ent T ru sts: 1. Union R.R. Co.--Rankin O riginal Issue-- $ 9 0 0,000; outstanding, M ay 1, 1935, $135,000. D ated-- May 1, 1917; due $45,000 annually to May 1, 1938. In te re s t P aid -- M&N 1, at office of Trustee. equipment gold 5s, due serially to 1933: T ru ste e -- Union Trust Co., Pittsburgh, Pa. C allable-- Not subject to call. S ecu rity -- 750 steel hopper cars, costing $1,557,293. T ax S ta tu s-- Company pays normal income tax up to 2%. Rating, Aaa Bonded D ebt: 1. Union R.R. Co. fir st gold 5 s , due 1 9 4 6 : A u th o rized -- $2,000,000; outstanding, $2,000,000. D ated -- Sept. 1, 1896; due Sept. 1, 1946. In te re s t P a id -- M&S 1, at office of Trustee. T ru ste e -- Fidelity Trust Co., Pittsburgh, Pa. C allable-- Not subject to call. D enom ination-- Coupon, $1,000. S e c u rity -- First lien on 29.50 miles of main track from East Pittsburgh to Streets Run and Duquesne Junction to Duquesne, Pa., and 78.13 miles of sidings. T ax S ta tu s-- Company pays Pennsylvania taxes (un limited) without deduction from interest. Company pays normal income tax up to 2%. Rating, Aaa 2 . Union R.R. Co. gold debenture 6 s , due 1 9 4 6 : A u th o rized -- $12,000,000; outstanding, $5,900,000. D ated -- June 15, 1920; due Sept. 1, 1946. In te re s t Paid--J&D 15, at office of Trustee. T ru ste e -- United States Trust Co., New York. C allable-- Not subject to call. G u a ra n te e d -- By the United States Steel Corp. D en o m in atio n -- Registered. T ax Status-- Company pays Pennsylvania taxes (un limited) without deduction from interest. Company does not pay normal income tax. Rating, Aaa Capital Stock : Union R.R. Co. sto ck : Authorized and outstanding, $5,000,000 (increased from $2.000,000 in 1920) ; par $50. A majority of the stock is owned by the United States Steel Corp. Dividends paid as follows: 1904, 60%; 1905, none; 1906, 10%; 1907 to 1911, none; 1912, 20%; 1913, 20%; 1914, 50%; 1915, 20%; 1916, 30%; 1917, 10%; none in 1918,' 1919, 1920; 1921, 10%; 1922, 15%; 1923, 20%; 1924, 10%; 1925, 15%; 1926 and 1927, 20%; 1928 and 1929, 25%; 1930, 15%; 1931, 5%; 1932 and 1933, none; 1934, 5%. Number of stockholders, Dec. 31, 1934, 8. Transfer Agent and Registrar: G. W. Kepler, Sec. and Treas., Pittsburgh, Pa. MONONGAHELA SOUTHERN RAILROAD COMPANY (Operated under lease by the Union Railroad Co.) H istory: Incorporated Feb. 5, 1897, in Pennsylvania. Leased to and operated by the Union R.R. Co., lease dated June 1, 1906, for 999 years, by the terms of which the Union R.R. Co. is to maintain line in good condition and pay interest on bonds, taxes, etc. Line of road: Monongahela Jet. to Mifflin Jet., and Wilson, Pa., 11.31 miles. Second track, 11.22 miles; third track, 1.76 miles. Sidings, 39.02 miles. Standard gauge. Rail, 100 to 130 lbs. Control: Controlled through stock ownership by Union R.R. Co., a U. S. Steel Corp. subsidiary. M anagem ent: Officers: R. T. Rossell, Pres., Pittsburgh, Pa.; W. S. McAbee, Vice-Pres., East Pittsburgh, Pa.; G. W. Kepler, Sec. and Treas.; Geo. E. Campbell, Aud., Pittsburgh, Pa. Directors: R. T. Rossell, Geo. E. Campbell, J. G. Frazer, W. A. Seifert, G. W. Kepler, E. C. McHugh, Pittsburgh, Pa.; W. S. McAbee, East Pitts burgh, Pa. Annual Meeting: Second Monday in January, at Pittsburgh, Pa. General Office: 1663 Frick Bldg. Annex, Pittsburgh, Pa. In com e A ccount, y e a r ended Dec. 31, 1334: R e n ta l in co m e , $300,386; fixed c h a rg e s, $300,000; c o rp o ra te expense. $386. Assets : Road and equipm ent ................. Miscellaneous physical property. O ther c u rre n t assets ................... Investm ents in affiliated cos. .. U nadjusted debits ........................ Com parative B a la n ce S h eet, as o f D ec. 31 1334 $7,383,385 13.875 75.323 425,127 79,713 1933 $7,982,285 12.875 75.367 425,127 79,713 L iabilities : Capital stock Funded debt ........ Interest matured . Accrued items . . . Unadjusted credits 1934 $3,000.000 5,500,000 25 75.000 293 1933 $3.000.000 5.500,000 75 75,000 292 T otal assets .......................... $8,575,323 $8,575,367 T otal liabilities ..................... $8,575.323 $8,575,367 Bonded D ebt: 1. M onongahela Southern R.R. A u th o rized -- $3,000,000; outstanding, $3,000,000. D ated -- Oct. 2, 1905; due Oct. 1, 1955. In te re s t P aid -- A&O 1, at office of Trustee. T ru ste e -- Federal Steel Co., 71 Broadway, New York. D enom ination-- Coupon, $1,000; registerable as to principal. Callable-- Not subject to call. G u a ra n te e d -- Jointly as to principal and interest b y Union R.R. and U. S. Steel Corp. by endorsement. Co, fir st gold 5 s , due 1 9 5 5 : S e c u rity -- Frist lien on 24.49 miles of main tracks, 39.02 miles of yard and side tracks, and 8 locomotives. U n d erlie-- $2,500,000 Monongahela Southern R.R. gen. 6s of 1955 (No. 2), which provides for retirement. Q u o ted -- In New York. Tax S ta tu s-- Company pays Pennsylvania taxes (un limited) without deduction from interest. Company pays norma! income tax up to 2%. Rating, Aaa 2 . M onongahela Southern R.R. Co. general gold 6 s , due 1 9 5 5 : A u th o rized -- $7,000,000; outstanding, $2,500,000. D ated -- April 1, 1920; due Oct. 1, 1955. In te re s t P a id -- A&O 1, at office of Trustee. T ru ste e -- Federal Steel Co., 71 Broadway, New York. D en o m in atio n -- Registered. C allable-- Not subject to call. G u aran teed -- Principal and interest guaranteed by the U. S. Steel Corp. S e c u rity -- Lien on 24.49 miles main tracks, 39.02 miles yard tracks and sidings and 8 locomotives. Issued to discharge floating indebtedness. A d d itio n al Bonds-- May be issued to retire Mononga hela Southern R.R. 1st gold 5s of 1955 (No. 1) or for improvements, etc., at 80% of cost. T ax S ta tu s-- Company pays Pennsylvania Taxes (un limited) without deduction from interest. Company does not pay normal income tax. Rating, Aaa