1901 ADDED SINCE Pig iron 7,440,000 tons 10,960,000 tons Steel ingots 9,425,000 ” 12,925,000 ” Finished steel 7,719,000 ” 8,481,000 ” Cement 500,000 bbls. 13,000,000 bbls. Benzol ---------- 45,000,000 gals. Railroad mileage owned 2,007 miles 1,768 miles Railroad cars owned 27,481 34,767 Locomotives owned 593 852 Steamers, etc. 112 259 Iron ore deposits 700,000,000 tons 900,000,000 tons Working capital $138,110,545 $431,877,714 As these figures show, additions since 1901 would constitute a new company larger in practically every respect than was the Steel Corporation at its birth. And this expansion has been achieved with little addition to the book value of the properties, which at the end of 1901 was carried at $1,437,494,863 and in 1919 at $1,573,661,547. And, of course, there have been further additions during 1920. Complete figures for that year are not available at the time of writing but property account as of December 31st, is estimated at $1,620,140,000 and working capital at $595,952,000. Nor has this expansion been accompanied by the addition of a single penny to stock capitalization. In fact, the amount of preferred stock has been reduced, as has the annual charge on earnings for bond interest and preferred stock dividends. When formed the Steel Corporation had a total bonded debt, including funded indebtedness of subsidiaries, of $364,735,900, and its bond-interest charges were at the rate of $23,964,175. Its preferred stock was $510,281,100 with an annual dividend charge of $35,719,677, or a total of $59,683,852, which had to be deducted from earnings before there could be any distribution made on the junior security issue. At the end of 1919 total bonds of the Corporation itself and its subsidiaries amounted to $568,727,932. Interest charges thereon were $29,210,898. But preferred stock has been reduced to $360,281,100 and the dividend requirements thereon to $25,219,677, making total deductions from earnings before arriving at the balance available for distribution to common stockholders of $54,430,575, or $5,253,277 less than in 1901. This saving in interest on preferred dividend charges is equal to a little over a dollar a share on the common stock, which has remained at the same figure throughout the twenty years of the Corporation’s existence. In discussing the investment value of Steel common, it is necessary to lay considerable emphasis on the actual tangible assets, at cost, behind the stock. Tangible investment is of particular importance because earning power is based largely on it, and on earning power depend dividends.