United States Steel's common and preferred stocks are currently being bought and sold at prices materially above those prevailing right after the formation of the corporation. Also there has been a substantial and sustained increase in the number of stockholders. Against this, the price of United States Steel's common stock in recent years was far below its book value. Such book value is in large part expressed in dollars of prior years when the purchasing power of the dollar was much greater. In part, this is a reflection of the fluctuating nature of steel operations but it is also a reflection of the dampening effects of taxation and controls upon the incentive to risk savings.

EXHIBIT S-257

CHART 28.-Construction versus purchases from others, 15-year period (capital expenditures, 1935-49), United States Steel Corp. and subsidiaries

1 Includes following amounts paid to U. S. Government for facilities constructed by United States Steel:

1946..

1947.

1948.

1949..

Total.

$112,541, 603 18,186,900 11,740, 343 1,658, 590

144, 127, 436

United States Steel since 1935 has spent a total of 1,685.6 million dollars for additions to and replacements of its properties. Almost all of this amount was spent on facilities constructed by United States Steel. Only 1.3 percent of the total-21.4 million dollars-was spent for second-hand tools purchased from others.

EXHIBIT S-258

CHART 29.-How property expenditures were financed-1935-49, United States Steel Corp. and subsidiaries

Since 1935 United States Steel has spent 1,685.6 million dollars for property additions and replacements. This amount was provided principally-79.0 percent of the total-through the use of all moneys available from wear and exhaustion of the period after redemption of maturing obligations. New bond issues accounted for 10.3 percent of the total amount so spent. Proceeds from sales and salvage of property provided 97.5 million dollars toward the purchase of property. In addition to these sources of funds, it was necessary to use 83.0 million dollars of the income remaining after dividends.