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EXHIBIT S-209

INFORMATION CONCERNING PRODUCTION AND SALE OF GAS AND WATER

In response to requests of the chairman and others (hearings, pp. 509-510), the following information is submitted:

During the year 1949 two small United States Steel subsidiaries produced 5,220,044 m. c. f. of gas, purchased 13,032,449 m. c. f. of gas from others, and sold about 1,000,000 m. c. f. of gas outside of United States Steel, only about 16/1000 of 1 percent of the national production.

As the figures indicate, all but a very small fraction of the gas produced and purchased is used by United States Steel in its own operations.

On December 31, 1949, these subsidiaries had a total of 1,328 gas wells in operation, with less than 1,600 miles of natural gas and byproduct gas lines. Wholly incidental to the production of gas is a total of 194 oil wells producing an average of 134 barrels per day, all of which is sold to oil-refining companies. United States Steel has a small water-supply system near one of its coal operations in Pennsylvania. About two-thirds of the production is used in the operation of its coal mines and sold to other industrial users. The remainder is sold to nonindustrial users and to domestic consumers. MAY 15, 1950.

EXHIBIT S-210

INFORMATION CONCERNING TRANSPORTATION FACILITIES

At the April 26, 1950 session of the special subcommittee, Mr. Levi inquired about operation of barges and seagoing tugs on the Warrior River by Tennessee Coal, Iron & Railroad Co. (hearings, p. 514). No seagoing barges or tugs are operated by that company or by any other subsidiary of United States Steel Corp. Barges and towboats are operated by another subsidiary, the Warrior & Gulf Navigation Co., on the Warrior River, but none of them are seagoing.

The chairman inquired about the number of miles of road the number of passengers cars, the number of freight cars and the number of diesel engines owned or leased by subsidiary railroad companies (hearings, pp. 516, 517). That information is as follows according to reports filed by the railroad companies with the Interstate Commerce Commission for the year 1949:

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Roads marked with asterisk are switching and terminal roads, and their mileage is reported as miles of tracks. Line haul roads report miles of road.

EXHIBIT S-211

LIST OF UNITED STATES STEEL CORP. COMMON CARRIER SUBSIDIARY RAILROADS

Bessemer & Lake Erie Railroad Co.
Duluth, Missabe & Iron Range Railway
Co.

Elgin, Joliet & Eastern Railway Co.
Union Railroad Co.

Birmingham Southern Railroad
Carbon County Railway Co.
Donora Southern Railroad Co.
Etna & Montrose Railroad Co.
Hannibal Connecting Railroad Co.

Johnstown & Stony Creek Railroad Co.
The Lake Terminal Railroad Co.
McKeesport Connecting Railroad Co.
The Newburgh & South Shore Railway
Co.

Northampton & Bath Railroad Co.
The Youngstown & Northern Railroad
Co.

Connellsville & Monongahela Railway
Co.

EXHIBIT S-212

Cargo carried by United States steel subsidiaries—Net tons-Year 1949

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1 Tons transported from, to, and within United States Steel subsidiaries' properties. Tons for the railroads are estimated in part.

Payable tons, i. e., net or long tons or 40 cubic feet.

Source: Figures in columns (1), (2), and (4) supplied by United States Steel Corp.

C. MURRAY BERNHARDT, Esq.,

EXHIBIT S-213

UNITED STATES STEEL CORP. OF DELAWARE,
Pittsburgh, Pa., August 22, 1950.

General Counsel, Committee on the Judiciary,
Subcommittee on Study of Monopoly Power,

House of Representatives, Washington, D. C.

DEAR MR. BERNHARDT: Referring to your request in connection with the testimony of Mr. Fairless on April 26, 1950, for information on quantities of ammonia sulphate and ammoniacal liquor, we wish to advise that shipments of ammonia sulphate for the year 1949 by United States Steel subsidiaries amounted to 220,000 net tons. There were no shipments of ammoniacal liquor in 1949.

Very truly yours,

B. L. RAWLINS, Assistant General Solicitor.

EXHIBIT S-214

I. UNITED STATES STEEL'S IRON ORE SUPPLIES IN THE UNITED STATES

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1 Source: The Iron Ores of the United States by Dr. C. W. Hayes, published in Bulletin 394 of the Department of the Interior, U. S. Geological Survey, reprinted from Report of the National Conservation Commission, February 1909. Production 1908-49, inclusive, as shown by Minerals Yearbook, U. S. Department of Interior has been deducted, and 200,000,000 tons have been added in the western district to recognize recent work in Utah covered by U. S. Bureau of Mines Report of Investigation 4388, November 1948. Excludes 218,000,000 tons of titaniferous magnetite, none of which is owned by United States Steel.

Includes an estimate of 126,000,000 gross tons of ore beyond assessed tonnages which it is estimated will be recovered in addition to assessed tonnages due to lowering of shipping grade, to recovery of lower-grade tonnages by beneficiation, to presently unknown extensions of ore bodies, and to admixture of noncommercial grades as a result of mining conditions encountered.

(B) Gross investment, per books, in iron-ore properties and facilities in the United States as of January 1, 1950, $181,924,227.

(C) The projected investment is undetermined at this time, but large capital expenditures will be required to provide for the processing of lower-grade ores as the grade of material available in the ground gradually falls in future years. It is estimated that the capital expenditure for each annual ton of taconite ore concentrating capacity might approximate $20, which would require $300,000,000 if 15,000,000 tons were provided.

(D) Present facilities will produce approximately 44,000,000 gross tons of iron ore annually. Depending upon sales demands and the effects of foreign developments, this capacity will be adjusted from time to time in the future to meet current demands.

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(E) Actual shipments by years, 1939, to March 15, 1950, for use by United States Steel as well as sales to others are tabulated on the attached memorandum I.

(F) Projected shipments will depend upon many factors, including future steel demands, future markets for ore, and the economics involved in the use of lowergrade domestic ores compared to high-grade import ores. United States Steel's objective is to develop its future ore supply program so that the minimum practicable cost increases are experienced and its ability to compete in the steel markets of the future is maintained.

96347-50-ser. 14, pt. 4b-33

MEMORANDUM I

United States Steel iron ore shipments, gross tons, Jan. 1, 1939, through Mar.

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Major part of shipping, including sales occurs during the season of navigation on the Great Lakes.

EXHIBIT S-214A

II. UNITED STATES STEEL'S FOREIGN IRON ORE SUPPLIES IN VENEZUELA

(a) Proven ore as of January 1, 1950, estimated at 415,000,000 gross tons. (b) Gross investment per books $6,307,578 as of January 1, 1950.

(c) Projected investment undetermined, but will require large capital expenditures, in excess of $100,000,000, for a development of the character mentioned in the next paragraph.

(d) No production facilities at this time. Depending upon future conditions, capacity to produce 10 to 15 million tons per year by 1960 may be developed. (e) There have been no actual shipments from this project in Venezuela. (f) The size of the development will depend upon the actual competitive market available to these ores when production gets under way. It is hoped a market may be found for a sizable quantity of ore for sale annually, exclusive of United States Steel's requirements.

NOTE.-Iron ore deposits in Cuba are not included.

EXHIBIT S-214B

III. ESTIMATES OF IRON ORE SUPPLIES IN THE WORLD (OUTSIDE THE UNITED STATES) [In billions of gross tons]

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The iron-ore resources of the world, an inquiry made
upon the initiative of the Eleventh International
Geological Congress, Stockholm, 1910, with the
assistance of geological surveys and mining geolo-
gists of different countries.

Olin R. Kuhn in Engineering and Mining Journal,
July 1926 published.

17.9 (classified as
available ore in
1910).

47.3 (classified as
actual ore in
1926).

Harry Mikami, in Economic Geology, February 31.4 (classified as 1944.

actual reserves
in 1944).

potential reserve

in 1944).

EXHIBIT S-214C

IV. ESTIMATES OF IRON ORE SUPPLIES IN THE UNITED STATES

[In millions of gross tons]

Source

The iron ores of the United States by Dr. C. W. Hayes, Bulletin 394, Department of the Interior, U. S. Geological Survey, reprinted from report of the National Conservation Commission, February 1909.

The Iron Ore Resources of the World, an inquiry made upon the initiative of the Eleventh International Geological Congress, Stockholm, 1910, with the assistance of geological surveys and mining geologists of different countries, including the United States.

The Geology of the Lake Superior Region, by C. R. Van Hise and C. K. Leith, U. S. Geological Survey, 1911.

Olin R. Kuhn in Engineering and Mining Journal,
July 1926, published.

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Publication 2807, Department of Interior, U. S. 5,000 to 7,500, a
Geological Survey, in 1938.

recent rough
estimate of the
probable re-
serves of ore of
present com-
mercial grade in
the United
States.

Harry Mikami, in Economic Geology, February 3,800 (classified as

1944.

E. F. Burchard and A. C. Johnson, U. S. Geological
Survey, and N. B. Melcher, U. S. Bureau of
Mines, testimony before subcommittee of Com-
mittee on Public Lands, U. S. Senate, May 1947.

actual reserves
in 1944).
3,723 (classified as
measured and in-
dicated in 1947).

70,726 (classified as

73, 909

ore available in
the future in
1911.1
83,870 (classified as
possible ore, 25
to 30 percent
iron in 1926).
The reserves of
low-grade ore
are enormously
greater.

104, 320

(2)

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In the Lake Superior district, Dr. Hayes estimated 200,000,000,000 more tons and Drs. Van Hise and Leith estimated 300,000,000,000 more tons than they included in their estimates.

Unstated.

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