For the years prior to 1946 the income reflects the results of operations as shown by the profits and loss accounts of Oliver and associated mining companies subsequently merged with Oliver and does not reflect the equity of United States Steel Corp. in the total profit and loss of such subsidiaries as a group. EXHIBIT S-215 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. AMENDMENT No. 3 TO FORM S-1, REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OF PITTSBURGH STEEL COMPANY Amending the Prospectus and filing Consent, Exhibits 15-B-C, 15-C-3 and 15-E-1 and revised Exhibits 6, 7-E, 14-A, 14-B, 14-C and 19. Pittsburgh Steel Company-Cross-reference sheet for registration statement on Form S-1 and prospectus [Securities registered: $6,500,000 first mortgage bonds, 44% series, due 1958] [Pp. 8 and 9] RAW MATERIALS The Company owns approximately 22.2% of the capital stock of the Bennett Mining Company, 16% of the capital stock of The Mesaba-Cliffs Mining Company, and 10% of the capital stock of the Plymouth Mining Company, each of which owns and operates iron ore properties. The Company participates, with other companies, in the ownership, operation and management of the abovenamed companies, the output of which is purchased by the proprietor companies, including the Company. The properties of these companies, substantially all of which are held under mining leases, are situated in the Mesaba Range in Minnesota and the Gogebic Range in Michigan. The Company's proportionate interest through its stock ownership in the iron ore properties of the three companies specified, all of which properties are equipped and in operation, was estimated as of January 1, 1948, to be in excess of 2,390,000 gross tons of standard merchantable ore. The Company also owns 50% of the capital stock of the Orote Iron Company, the other 50% being owned by Pittsburgh Coke & Chemical Company (see "Principal Holders of Equity Securities"). The property of this corporation, which is held under mining leases, is situated in the Mesaba Range in Minnesota and has not as yet been developed. The Company's proportionate interest, through its stock ownership, in this iron ore property is estimated at 1,400,000 gross tons. The Company and Pittsburgh Coke & Chemical Company also have equal ownership in a corporation that has been organized to acquire leases on certain ore lands in Wisconsin. The operations of such corporation have not progressed beyond exploratory stages at this time. The Company's consumption of blast furnace iron ore averaged approximately 661,000 gross tons per year from 1943 to 1946, inclusive, and 723,000 gross tons were consumed during 1947. The Company secures the ore used by it (a) by purchase from the three ore-producing companies named above; (b) by exchange of ore so purchased for other types of ore; and (c) by purchase from others. Approximately 71% of the ore purchased by the Company from 1943 to 1946, inclusive (including ore given in exchange by the Company as stated above), was acquired from the corporations named above. The comparable percentage for 1947 was 56%. Operation of the new blast furnace being acquired by the Company (see "Plant Maintenance and Improvements") will increase the Company's requirements at full capacity of blast furnace iron ore by approximately 680,000 gross tons per year. The Company has not experienced undue difficulty in making at generally satisfactory prices the open market purchases of iron ore required for the operation of the two blast furnaces now being operated, but the Company has not yet been able to make sufficient commitments for iron ore to provide for the operation of both of such furnaces together with the new blast furnace throughout the ore season ending on May 1, 1949. It is contemplated that the new blast furnace will be ready for operation in May 1948. Present commitments for iron ore will permit the operation of the new blast furnace and one of the present furnaces during such ore season. It is anticipated that in the future the Company will have to rely, as will most other steel companies in varying degrees, upon ores obtained from new sources or from the beneficiation of lower grades of ore which may in either case result in increased costs. The ore reserves of certain large competitors of the Company are believed to be of sufficient extent to warrant the expectation that such competitors will be able to produce therefrom under favorable cost conditions at a time when the Company may find it necessary to rely upon ores obtained from new sources or from the beneficiation of lower grades of ore. The Company's current requirements of high volatile metallurgical coal and steam coal are approximately 100,000 net tons per month; and its current requirements of low volatile coal are approximately 8,500 net tons per month. The Company has a contract for the purchase of approximately 45,000 tons of high volatile metallurgical coal per month from Emerald Coal and Coke Company For information with respect to the arrangements between the Company and such corporation. see "Principal Holders of Equity Securities." The Company also has contracts, dated June 1, 1947, with Consolidation Coal Company, a subsidiary of Pittsburgh Consolidation Coal Company, for the purchase of approximately 36,000 tons of high volatile metallurgical coal per month for a period of ten years from three mines, one of which is located four miles from the Monessen Plant and the others on the Monongahela River. The Company purchases its requirements of low volatile metallurgical coal, which constitutes approximately 15% of the coal mix for coke making, from a mine of Hillman Coal & Coke Company (see "Principal Holders of Equity Securities") located approximately 150 miles from its Monessen Plant. The Company purchases the balance of its coal requirements (used for the most part in the production of steam) from others, principally small mining companies with their operations in the vicinity of the Company's plants. Since the work stoppage in the nation's bituminous coal mines beginning on March 15, 1948, deliveries of coal have been greatly reduced. As a result, operations during the past week have been substantially curtailed and it is expected that unless normal coal deliveries are resumed in a few days all operations will be suspended. The Company produces from the metallurgical coal, purchased as stated above, all of the coke required in the operations of the blast furnaces now operated by it. The Company has been producing approximately 4,000 tons of coke per month in excess of its requirements. Operation at full capacity of the new blast furnace referred to under "Plant Maintenance and Improvements" will require approximately 31,000 tons of coke per month. When all three blast furnaces are operated it will be necessary for the Company to procure in the open market the additional coke required or to make arrangements for the purchase of coal to be carbonized in the Company's coke plants described under the caption "Property: Coke Ovens." Hon. EMANUEL CELLER, EXHIBIT S-216 UNITED STATES STEEL CORP., Pittsburgh, Pa., September 25, 1950. Chairman, Committee on the Judiciary, House of Representatives, Washington, D. C. DEAR SIR: At the hearing before your committee on April 27, 1950, Mr. Levi asked Mr. Fairless about the participation of United States Steel in the distribution of various general classifications of steel products. After some discussion, Mr. Fairless suggested that further information concerning the subject should be developed. This suggestion appears at page 587 of the record. The product classifications used by Mr. Levi are the general ones which, for the most part, encompass many different types, grades, and qualities of products. For example, there are many different types, grades, and qualities of bars made by different steel producers, and it is necessary to identify ticular kind of bar before the relative participation of the various producers can be ascertained. Unless this is done, the measure of United States Steel's participation in the market for steel bars would be based upon production of types, grades, and qualities of bars which it does not make, as well as types, grades, and qualities of bars which it does make. Furthermore, production of the different kinds of products varies materially according to customer demand. par Since no information is available concerning production by types of steel products, we have concluded that further information on the subject developed by Mr. Levi would be of no value, since it would not fairly reflect the competitive situation. We appreciate your courtesy in giving us the opportunity further to explore this matter. Very truly yours, R. M. BLOUGH, General Solicitor. EXHIBIT S-217 COLUMBIA STEEL Co., Re inquiry FS-542 United States Navy, Mare Island, Schedule 5143 opening 10 A. M., October 15, 1940; inquiry FS-543-S United States Navy, Mare Island, Schedule 4244 opening 10 A. M. October 15, 1940. Mr. P. F. VOIGT, Jr. Manager, Stainless Steel Division, Carnegie-Illinois Steel Corp., Pittsburgh, Pa. DEAR SIR: Attached are copies of Mr. H. N. Pratt's letters of October 2 submitting the above invitations for bids for pricing instructions. These are probably the most attractive stainless steel specifications yet issued by the local Navy purchasing office; each covers but one item, and the total 50,000 pounds. Because this is considered attractive tonnage, even under present conditions, we are particularly anxious that you develop a delivery promise just a shade better than any other mills and a price which is at least competitive. We know you share our feelings in this matter. As mentioned in recent correspondence, we have not been favored with much tonnage from the coast navy yards since their requirements became really interesting several months ago. We have planned an analysis of all bids submitted this year to determine why we have been so unsuccessful. Unfortunately, because of the press of business, this study has not been completed; however, it appears that extended delivery has often been responsible. In this connection we call your attention to the following three bids reported on in our letters October 1 and 2. Inquiry FS-479-H, Mare Island Schedule 4138: 1 item 11,000 pounds of plates, approximate value $3,900. Inquiry FS-499-H, Mare Island Schedule 5499: 3 items 7,000 pounds of bars, approximate value $2,500. Inquiry FS-500-H, Mare Island Schedule 5920: 3 items 8,000 pounds of bars, approximate value $2,700. In each instance we are definitely out of the running because of deliveryall prices being about equal. Obviously some improvement in delivery must be forthcoming or there will be no point in bidding. With this though in mind, we again turn our attention to subject invitations. In addition to the usual prices and delivery promises for both all rail and rail and water shipments on each individual schedule, we propose to offer an alternate quotation reflecting the carload freight rate (both all rail and alternate rail and ocean) predicated upon receiving both contracts. You will note both schedules cover sheets for Mare Island stock with no delivery specified and both open on the same day. In other words, we suggest that it would be unfair to the Navy purchasing office not to extend them savings obtainable through good commercial business practice. We petition your approval and will expect the prices together with complete information by October 11 or October 14 at the very latest. Very truly yours, ALLOY & STAINLESS STEEL ACCOUNTS. EXHIBIT S-218 OCTOBER 10, 1940. Re inquiry FS-542-S U. S. Navy, Mare Island, schedule 5143 opening October 15, 1940; inquiry FS-543-S U. S. Navy, Mare Island, schedule 4244 opening October 15, 1940. Mr. E. S. DUVAL, Manager, Alloy and Stainless Steel Accounts, Columbia Steel Co., San Francisco, Calif. DEAR SIR: We have reviewed carefully your letter of October 3 with regard to the two above inquiries; also inquiries FS-479-H, FS-499-M, and FS-500-N, on which you state our delivery promises were not competitive. Unfortunately, the items covered by these three latter inquiries were such that we could not offer a better promise. At that time our plant stock was in such condition that we could not offer a promise of prompt shipment and on the other two inquiries, it was necessary to depend on an outside source of supply. Special attention as regards delivery promise is being given the two inquiries opening October 15, and we believe you will find our promise of delivery at least equal o and in all probability better than that offered by competitors. With regard to the next to the last paragraph of your letter, the two inquiries must be considered as separate transactions and it is impossible to combine and apply the carload freight rate. We will forward full information regarding both price and delivery in a few days and would ask that you quote the price which we name at that time. Yours very truly, CARNEGIE-ILLINOIS STEEL CORP., EXHIBIT S-219 Stainless Steel Division. COLUMBIA STEEL Co., San Francisco, Calif., September 12, 1940. Re: Inquiry FS-400-S, U. S. Navy, Mare Island, Calif., Schedule 4801-Opened August 28, 1940. Mr. P. F. VOIGT, Jr., Manager, Stainless Steel Division, Carnegie-Illinois Steel Corp., Pittsburgh, Pa. DEAR SIR: Please refer to previous correspondence regarding the above Navy bid ending with Mr. W. A. Shelby's letter of September 6. We are attaching a summary of bids received at the opening and wish to call your particular attention to the fact that all bidders quoted the same price and that we offered the most extended promise, which will probably put us out of the running on this business. If you will refer to previous summaries which we have forwarded to your office on other Navy bids, we believe you will find that in most cases our deliveries are more extended than the other bidders, and because of this factor we are not being awarded very much of this business. Since the bids from Mare Island and other coast navy yards are becoming more numerous and are calling for very attractive quantities, we would appreciate your giving this matter your careful attention to improve delivery on future bids, particularly on those calling for bar products. Incidentally, you will note the subject bid calls for 5 tons of one size sheets and appears to be attractive business, which we would have stood an equal chance of receiving had our promise been more favorable. Please let us have your comments concerning the above. Yours very truly, ALLOY & STAINLESS STEEL ACCOUNTS, E. S. DUVAL, Manager. Per: W. FENSTERMACHER. |