United States Steel Corporation

Annual Report 1960 @
United States Steel Corporation

Front Cover
Fifty-Ninth Annual Report
United States Steel Corporation
71 Broadway, New York 6, N. Y.
525 William Penn Place, Pittsburgh 30, Pa.
From imaginative research
come an ever widening variety
of new and useful products
and an increasing efficiency
in producing them.
These are essential to
continued growth and progress.
CONTENTS
U. S. Steel's Year - at a glance
Review by the Chairman
page 3 Production and shipments
4 Income, sales, dividends, taxes
4 Property expenditures
5 Working capital and debt
5 Steel prices
page 23
30
31
32
33
34
35
37
38
5 Technology and steel
6 Integrated research
6 Fundamental research
7 Improved raw materials
9 Better methods and processes
10 Diversified products and markets
14 The people of U. S. Steel
14 Employe training and development
14 Employe safety
15 Union employe matters
16 Employes, hours and wages
17 Employe benefit programs
18 Pension trusts
19 United States Steel Foundation, Inc.
19 Capital stock and stockholders
20 Public acceptance
Financial Summary
Economic growth and steel
Summary of Financial Operations
Statement of Income
Statement of Financial Position
Notes to Financial Statements
Auditors' Report
Details of Selected Items
Operating and Financial Story - 1940-1960
United States Steel and Carnegie Pension Fund
Divisions and Principal Subsidiaries
Directors and Officers
In this report, amounts in round numbers are approximate. "U. S. Steel"
refers to parent corporation, subsidiaries, or both. as required by context.

Molten steel being poured from an electric furnace
at V. S. Steel's South Works, Chicago, Illinois.

A Review of the Year
by the Chairman
Roger M. Blough,
Chairman of Board of Directors
In 1960 U. S. Steel experienced a wide range of activity in its rate of operations.
During the first quarter record ingot production was achieved. Operations
for the last half of the year declined to about half of the first quarter's
activity level but for the year as a whole production, shipments and income
were greater than they were in strike-affected 1959. In accordance with the
new labor agreement, additional employe benefits were made effective at the
beginning of the year followed by increased rates of pay on December 1, 1960.
The general level of steel prices remained unchanged.
PRODUCTION AND SHIPMENTS
Production and shipments were at high levels for the first quarter of 1960,
being influenced in part by a desire of customers to rebuild steel inventories
that had been depleted during the strike in 1959. Production of steel ingots
in that quarter was at a record level. Steel operations declined during the second
quarter as customers' steel inventories became adequate. During the last
half of the year operations were below the level of steel consumption, reflecting
a reduction in customers' steel inventories. It is estimated that by the end of the
year such inventories had been reduced to about the lowest level in recent
years. A major reason for the low level of these inventories is the customers'
3

confidence that the productive capacity of the steel industry assures ample and
quick supply.
Production of steel ingots and castings during the year amounted to 27.3
million net tons, or 65.1 per cent of U. S. Steel's rated capacity, and represented
99.5 per cent of the 1957-1959 average production, compared with
89.4 in 1959.
Shipments of steel products during 1960 were 18.7 million tons compared
with 18.1 million tons in 1959.
U. S. Steel's annual ingot capacity on January 1, 1961, was not materially
increased over that reported for January 1, 1960, when it represented about
28 per cent of the reported capacity for the steel industry as a whole.
INCOME, SALES, DIVIDENDS, TAXES
Income for 1960 was $304.2 million or 8.2 per cent on sales of $3,698.5 million.
This compares with income of $254.5 million or 7.0 per cent on sales of
$3,643.0 million in 1959, a year adversely affected by the 116-day steelworkers'
strike, all as more fully set forth in the financial statements.
Dividends of $7.00 per share were declared for the year on the 7 per cent
cumulative preferred stock. Dividends for the year on the common stock were
$3.00 per share, consisting of four declarations of 75 cents each in April, July
and October and in January 1961. Total dividends declared for 1960 on both
classes of stock aggregated $187.2 million or 5.1 per cent of sales and 61.6
per cent of income. Income reinvested in the business was $117.0 million.
Estimated United States and foreign taxes on income together with state,
local and miscellaneous taxes amounted to $377.8 million for 1960 comp'lred
with $326.6 million for 1959.
PROPERTY EXPENDITURES
U. S. Steel's expenditures for additions to and replacements of facilities
amounted to $492.4 million in 1960 compared with $366.1 million in 1959.
Property expenditures authorized during the year amounted to $297 million
compared with $331 million in 1959. On December 31, 1960, the amount
required to complete all authorized projects was estimated at $500 million
compared with a corresponding amount of $695 million at the close of the
prior year. During 1960 U. S. Government securities previously set aside to
cover, in part, property expenditures authorized were drawn down in the
amount of $195 million. The balance of such securities set aside amounted to
$300 million at December 31,1960.
The $492.4 million of property expenditures in 1960 compares with
recorded wear and exhaustion of $208.4 million for the year. This latter
amount was inadequate to recover the buying power originally expended for
facilities used up in the year. The resulting deficiency is primarily due to
inflation of the cost of new facilities while depreciation under existing tax laws
continues to be based on the original cost of facilities purchased many years
ago. The need for revision of the tax laws as they relate to depreciation is more
4

the benefit of its customers, the public at large, its employes, and its stockholders,
U. S. Steel is continuously engaged in scientifically developing the
potentialities of this extraordinary metal - steel.
Integrated research
More than seventeen hundred scientists, engineers and supporting personnel
are directly engaged in research at U. S. Steel. Research activities are
coordinated with those of the engineering, metallurgical, production and
commercial departments. All these groups seek to provide the customer with
an existing steel or to develop a new one that will best suit his particular
needs. The research activities include scientific studies generating new knowledge
of the fundamental properties of steel, studies to make present steels
more useful, and studies to develop completely new steels. The creativity,
imagination and skills of all these people are augmented with the most modern
research tools ranging from the ordinary chemical and physical analytical
apparatus to small-scale production units capable of duplicating actual production
conditions and problems. The newest scientific instruments are
employed for rapid analysis of the chemical composition of steels. "Torture"
tools are used to bend, twist, strain and break samples of steel to assure its
suitability for the intended use by the customer.
Many of the significant design and engineering improvements made in
transportation, housing, roads, food handling and distributing methods owe
their success in good measure to the contributions of steel research. Such
research has also contributed to improved farming methods, to stronger
national defense, and to significant "breakthroughs" in space exploration.
Fundamental research
u. S. Steel's Research Center at Monroeville, Pennsylvania, has a separate
laboratory devoted exclusively to fundamental research. This process of
extending the boundaries of human knowledge requires precise investigation
of the structure of atoms, the arrangement of atoms into crystals and the
relationships between structure and the resultant strength and other properties.
The knowledge thus gained speeds the scientific development of new
and better steels.
The exactness required in investigating the fundamental properties of
metals is illustrated by the fact that certain properties are strongly influenced
by the presence of impurities of only one or two parts per million. Thus, for
experiments in which even minute impurities would affect the findings,
research must produce, through unique processes, extremely pure metals.
Steelmaking involves complex chemical reactions between gases, slags and
molten metals at high temperatures. Knowledge of the rate and manner in
which these reactions occur and of how they are altered by changes in temperature,
pressure and amounts of substances involved, leads to a greater
scientific understanding of existing processes and aids in the design of new
and better processes.
6

With this modeI'll electron microscope
U. S. Steel scientists can study ultra-small
structural features of steel too tillY
to be observed by even the most
powerful light microscopes llsed
for conventionalmagllification. Subjects
call be magnified up to 250,000 times
- a penny magnified to this extent
would be almost three miles across.
Improved raw materials
The economical production of high quality products requires high quality
low cost materials capable of being efficiently utilized. To produce one ton
of finished steel product over 3 1h tons of coal, iron ore, limestone, scrap
and other materials, along with vast quantities of air, must be assembled,
mixed, stirred, cooked and molded - all under controlled conditions. Great
quantities of water are also required. The production of steel is carried out
at extremely high temperatures. The exactness required in controlling this
complex operation for certain commercial products is such that if comparable
specifications were applied in the baking of a cake the housewife
would have to count the grains of sugar going into the batter.
Research on raw materials has led to cleaner coal, more uniform and
stronger coke and more uniformly sized iron bearing materials, all of which
are essential to more efficient iron production. These improvements, combined
with technological advances in the design, instrumentation and control
of blast furnace operations, have resulted in startling accomplishments. For
example, U. S. Steel has produced over 35 per cent more iron in some of its
most modern furnaces than was produced only ten years ago in its then most
modern furnaces.
7

Above, Lac Jeannine site of the
Quebec Cartier Mining Company operation
located in the Province of Quebec, Canada,
about 193 miles north of the Gulf of
St. Lawrence. 1n the background can be
seen various bench levels of the open pit
mine being developed. In the foreground
are the storage silos and the concentrator
which will convert the crude ore to a
high-grade iron ore concentrate.
Right, a new prototype dry magnetic separator
designed and developed by Oliver Iron
Mining Division for use in studying dry
concentration of certain low-grade ores.

Below, fall scene in Wyoming's
rugged Wind River Mountains,
at the site of the
Columbia - Geneva Division's
"Atlantic City Project"
for the mining and beneficiating
of low-grade iron ore.
This project will include an
open pit iron ore mine,
crusher, concentrator, pelletizer
and shipping facilities.
The raw materials program was further advanced in 1960 by the continued
construction of iron ore production facilities at Quebec Cartier Mining
Company in Canada. The construction of a major iron mining and ore beneficiating
facility near Atlantic City, Wyoming to supply iron ore to the
Columbia-Geneva Steel Division was also authorized. A new raw materials
research laboratory for studying problems related to iron ore beneficiation
was established by Columbia-Geneva. In addition to the present plant in
Minnesota now being used for process development through the production
of a limited quantity of commercial ores from low grade magnetic ore bearing
materials, construction was authorized for an additional plant in Minnesota
for experimental processing of non-magnetic low grade iron bearing
materials which exist in substantial quantities in the western Mesabi Range.
Better methods and processes
Many people think of a steel mill as a series of large furnaces in which raw
materials are melted, while nearby are the buildings that house massive
machines to squeeze, shape, roll, or otherwise form the steel into various
familiar products. But production of consistently high quality steels requires
much more than that; it requires a multitude of necessary supporting equipment.
Facilities are needed both for heating and for cooling the steel slowly
or rapidly as required; machines are necessary for stretching, straightening,
flattening, sawing, or cleaning it. But most important in producing high quality
steels is the accumulating store of knowledge from which can be known in
advance what will happen to the uniformity, structure and strength of the
steel as various operations are performed.
As an important research tool with respect to the efficiency of producing
iron, a versatile four-foot diameter highly instrumented experimental blast
furnace is being constructed which will accurately duplicate all phases of blast
furnace operation. It will be equipped for precision control of temperature,
pressure, wind velocity, and fuels. With it, furnace and supporting facility
designs, size of materials, and fuels can be tested. In addition, construction of
an ultra-modern blast furnace, near Pittsburgh, has been authorized. It will be
the largest iron producing facility in the Pittsburgh District and will be equipped
for evaluation of numerous technological innovations.
Unnoticed by the casual observer are the tremendous quantities and varieties
of refractory brick used in a steel mill. The selection of the proper brick for
each process means greater productive time, and therefore capacity, because
of the longer periods between shutdowns for repairs and rebuilding. Research
scientists, using modern research tools and advanced techniques, analyze,
design, construct and test to destruction various brick and brick shapes to
find the best one for each of the many processes using such refractory materials.
Such research has resulted in very substantial savings.
Research on the shaping of steel involves, among other things, the development
of complex systems of machine control which are largely automatic.
Such controls are incorporated in the design of new equipment and in the
9

Technician preparing ball bearings
for use in lubricant testing
equipment. Extensive research
is conducted to select
the best lubricant for
each operation.
improvement of existing facilities. For example, the combination 160-inch
and 210-inch wide plate mill now under construction in the Chicago area will
incorporate electronic and other controls developed through research. When
completed, this mill will produce wider plates of more uniform thickness than
any now available throughout the world. In 1960 a new high-speed six-stand
52-inch cold reduction mill was authorized for the Tennessee Coal & Iron
Division. This mill will have a speed approximately three times greater than
that of the mills it replaces and will produce the thinner and wider steels for
tin plate of the highest quality that are now in demand. To accelerate development
of even more efficient processes and techniques, the Electromechanical
Engineering Laboratory was opened at the Research Center in May of 19600
Diversified products and markets
Today's tailor-made steels allow the engineer and the designer greater freedom
of imagination and frequent opportunity to apply entirely new principles of
design and construction. Carbon steels, the "bread and butter" of the steel
industry, have been improved and developed so that regular grades are now
used for many specifications that formerly required alloy steels.
Steel's customers benefit from the new and improved products that stem
from research. Improved axles and transmission shafts for use in automotive,
earth moving and farm implement equipment can now be made from carbon
steels, instead of more expensive alloys previously required. Quality steel bars,
from which sparkplug shells are produced, permit the customer to form the
shell by a cold extrusion process using only two-thirds of the steel formerly
required when such shells \yere machined. Today's steel line pipe, because of
its greater strength and larger diameter, enables our customers by using greater
pressure to transmit 60 per cent more gas than was possible only a decade
ago with the same tonnage of pipe.
Among the new products introduced by U. S. Steel in 1960 was steel which
can be enameled directly with a single coat, for economical use by industries
making household appliances and other porcelain-enameled products. The
American Steel & Wire Division introduced a higher-strength telephone wire
which will reduce the cost of installing telephone lines; and the National Tube
Division announced a new, stronger tubing joint, called "buttress thread,"
which offers major advantages for the oil industry in its attempts to attain
greater well depths.
A revolution in tin plate manufacture has been wrought over the past
twenty-five years. Individually coated small sheets, known as hot-dipped plate,
have been replaced with coils of electrolytically coated steel strip almost four
miles long. This product is of higher quality and uses about one-fourth of the
tin previously needed for the hot-dipped plate. In 1960 a new thinner tin plate
was introduced commercially under the trademark FERROLITE. From 100
pounds of FERROLITE, customers are producing up to 1,400 six-ounce
citrus juice cans compared with just over 1,000 cans made from the same
weight of conventional electrolytic tin plate. Research is continuing to make
10

Analog computor, right, in new
Electromechanical building at the
Research Center is used by scientist to
simulate and analyze complex physical
operating situations both rapidly
and economically. Modern computors are
used throughout U. S. Steel by
research, engineering, production and
accounting departments for the
rapid solution of complex problems and
for more efficient data handling.
Continuous electroplating pilot line, right,
at the Research Center is used for
developing improved methods of
depositing metallic coatings on steel.
Knowledge gained from such research
speeds up development of
full-scale commercial methods for the
production of new and improved products.
Left, scientist takes measurements
of a fine iron ore concentrate
to predict, for example, the extent of shifting
of concentrates when piled in ships' holds.
Such research leads to safer
and more efficient handling methods.

Attractive "Curtain Wall"
building design,
a postwar development
employing stainless or colorful
porcelain enameled steel
exterior walls, has
been utilized in over
2,000 buildings in the past
five years. These modern
panels of steel not only
reduce construction cost
but also practically eliminate
exterior maintenance.
Left, stainless steel, because of its beauty
and long life, was selected for the
retractable dome of the nearly completed
Civic Auditorium in Pittsburgh, Pa.
which is being erected by
U. S. Steel's American Bridge Division.
The use of tin plate for
soft drink cans is growing.
Although relatively a small part
of the soft drink
container market, tin plate
sales for soft drink cans
increased almost 50 per cent
from 1959 to 1960.

3
2
Lost-T ime Accidents
Steel Producing Divisions
Per Million Manhours
o
1950 1955 1960
craft and guided missiles; aircraft landing gear; special bolts, nuts and rivets;
high-temperature bearings; and power plants for these flight devices.
What new steel developments does the future hold? The answer lies in a
continued search for new knowledge and in the translation of that knowledge
into useful steels and products made of steels. Not too many years ago, steels
for structural purposes having strength before breaking equal to 50,000 to
60,000 pounds per square inch were commonly used. Today, strengths of
80,000 to 100,000 pounds or more are common. For other applications ultrahigh-strength
steels in the range of 250,000 to 300,000 pounds per square
inch tensile strength have been developed and are being used. Fine sized steel
wire with strength of 600,000 pounds has been developed and tested in the
laboratory and is being commercially evaluated for special purposes. Fundamental
research has demonstrated that the theoretical potential strength of
steel is well over one million pounds per square inch.
Research to improve existing steels, develop new ones and seek new uses
for them is a never-ending process. It contributes to the strength and growth
of the country, to employment security for U. S. Steel's employes and to profits
for its stockholders.
THE PEOPLE OF U. S. STEEL
U. S. Steel's greatest resource - even more than its physical resources - is its
employes. These are the people who create better steels, mine and move the
materials, operate the furnaces and mills, sell the thousands of products produced,
and ably manage and perform all the other essential functions.
Employe training and developme n t
To assure that adequately trained employes are available to meet both current
and future needs, U. S. Steel's Management Development Policy was further
implemented in 1960. This policy provides for the selection, training, development
and advancement of members of management.
About 4,200 employes, a record number, participated in U. S. Steel's
Advanced Technical Study Program, a voluntary self-development program
open to all employes, while 51 management employes took part in advanced
management programs at 15 colleges and universities. On-the-job training and
re-training continues, and about 750 employes participated in the Trades
Apprentice Training Program.
Employe safety
During 1960 the accident frequency rate established another all-time low.
In the steel producing divisions, the long-term downward trend in the number
of lost-time accidents reached a record low of 0.79 per million manhours
compared with a rate of 1.05 in 1959 and 2.66 in 1950. Recognition
by the National Safety Council and other agencies was earned by many plants
for extended lost-time accident-free periods and for reduction in the number
of accidents below the average of comparable operations.
14

Early in 1960 Lorain Works of the National Tube Division established
an all-time steel industry safety record of over 10 million manhours of production
without a lost-time accident. Later in 1960 the employes of Gary
Steel Works exceeded that new record by working over 17 million manhours
without a single lost-time accident. These notable achievements in safety
earned the National Safety Council's much coveted "award of honor" plaque.
During the year the ore carrier Benjamin R Fairless of the Pittsburgh Steamship
Division also won a National Safety Council Award for completing
twelve years without a single lost-time accident.
Union employe matters
Since the settlement on January 4, 1960, with the United Steelworkers of
America applies to the majority of employes, labor relations in 1960 did
not involve any negotiations affecting large groups of employes.
Hourly employment costs were increased substantially in 1960 under terms
of the settlement with the Steelworkers. Under the agreement, U. S. Steel
now pays the entire cost of the insurance benefits program which previously
had been shared with employes and which now provides additional insurance
benefits. Increased pension benefits were provided for employes retiring
during the period of the agreement. Further, the agreement renewed the
supplemental unemployment benefit plan and continued the existing 17 cents
per hour cost-of-living adjustment incurred under the previous contract.
Details of these changes were set forth in the 1959 Annual Report.
The agreement further provided that a wage increase be made effective
December 1, 1960, ranging from 7 cents to 13 cents per hour including an
increase of 0.2 cent per hour in increments between the job classes. It also
provided for a maximum increase on that date of 3 cents per hour in the
cost-of-living adjustment subject to reduction by the excess of the insurance
benefits program cost as estimated for the quarter ending June 30, 1961,
over a predetermined base. The company and union have agreed that the
Leslie B. Worthington,
President and Chairman of Executive Committee
15

projected insurance costs in excess of the predetermined base are such that
the 3 cents cost-of-living adjustment is completely offset. A further wage
increase is to be made effective October 1, 1961, as well as a possible costof-living
adjustment.
The agreements with the Steelworkers covering insurance, pensions and
supplemental unemployment benefits continue in effect through December 31,
1962, but are subject to renegotiation at the same time as the basic labor
agreements which expire on June 30, 1962.
The committees on human relations research and on local working conditions
provisions established by the 1960 agreement with the United Steelworkers
of America met from time to time during the year. Their activities
to date have been exploratory, and no final recommendations have been
made on any of the subjects discussed.
Operations at various plants were interrupted during 1960 by strikes called
by the United Steelworkers of America and the Brotherhood of Railroad
Trainmen against certain subsidiary railroads furnishing common carrier
service to those plants.
The contract with the United Mine Workers of America negotiated in
December 1958 by the Bituminous Coal Operators Association on behalf of
its members, including U. S. Steel, and terminable on or after November 30,
1959, on 60 days' advance notice by either party, continued in effect during
1960. Payments made to the United Mine Workers of America Welfare and
Retirement Fund in connection with U. S. Steel's coal mining operations
during 1960 amounted to $7.2 million.
Under contract check-off provisions, $9.1 million was deducted in 1960
from wages of employes for union dues, service charges, initiation fees and
assessments, and remitted to authorized union officials. The corresponding
amount deducted and remitted in 1959 was $6.8 million.
The total number of work stoppages in 1960 was 39 as against 67 in 1959.
Manhour losses in 1960 were estimated at 1.4 million, as compared with 108
million in 1959 which reflected largely the steelworkers' strike.
Employes, hours and wages
The average number of men and women employed was 225,081. Total payroll
in 1960 amounted to $1,504.0 million and manhours worked during the
year aggregated 409.0 million.
Weekly hours of work for all employes averaged 34.8 in 1960, compared
with 35.1 for the year 1959 and 38.2 for the first half of 1959. Average
hourly earnings for the year 1959 were abnormally affected by the steelworkers'
strike in the latter part of that year. Accordingly, the 1959 hourly
and weekly earnings shown below are for the first half of the year, the prestrike
period.
16
Year 1960
First Six Months -1959
Hourly
$3.68
$3.67
Weekly
$127.81
$139.89

The 1960 average hourly earnings reflect only one month's effect of the
December 1, 1960, wage rate increases. These average hourly and weekly
earnings are exclusive of social security taxes, pensions, insurance, and other
employe benefits.
Employe benefit programs
The amounts provided by U. S. Steel to cover the cost of pensions, social
security taxes, insurance and other employe benefits in the years 1960 and
1959 are shown in the table on the following page.
Pensions - During the year the pension plan was amended by the Board of
Directors to include increased pension benefits negotiated with labor unions,
and related adjustments. Under the U. S. Steel pension plan, pensions were
granted during 1960 to 4,708 retiring employes. At the end of the year there
were 37,401 former employes or their co-pensioners receiving pensions as
compared with 35,175 at the end of 1959. Pension benefits paid in 1960 were
$42.5 million.
Insurance - Under the U. S. Steel group insurance plans, beneficiaries of
active and retired employes received death benefits of about $14.4 million in
1960 and $13.3 million in 1959. At the end of the year approximately 243,000
active and retired employes were insured for about $1,629 million of life
insurance. Accident, sickness, hospital, surgical, in-hospital medical and
major medical benefits of $37.0 million were received during 1960 by
employes or their families under the U. S. Steel insurance plans.
S. U. B. - Supplemental unemployment benefit payments to eligible employes,
which first became payable in September 1957, have totaled $41.9
million since the inception of the plans, including $16.5 million in 1960.
Savings fund plan - The Savings Fund Plan for Salaried Employes, designed
to encourage individual savings and assist employes in acquiring a stock interest
in the Corporation on a continuing basis, completed its fourth year of
operation. About 40,000 salaried employes - over 92 per cent of those eligible
- were participating in the plan at year end and were saving on the average
about 6.6 per cent of their base salaries. Employe savings during the year
amounted to $22.4 million.
Participants may elect to have all of their savings invested in obligations
of the U. S. Government or one-half in such obligations and one-half in
U. S. Steel common stock. They elected to invest in U. S. Steel common stock
almost 93 per cent of their savings eligible for such investment. These savings,
together with company contributions of 50 cents for each dollar of savings
by a participant, and the dividends received during the year were used for
the purchase of 303,702 shares of U. S. Steel common stock. Since the inception
of the plan such purchases which were credited to savings plan participants
amounted to 1,078,991 shares as of December 31, 1960, or 2.0 per cent
of the outstanding shares. Shares held in the trust, except shares not vested
in employes, are voted by the trustee in accordance with directions furnished
by the employes. Shares not vested are not voted. Company contributions
17

for the 1957 Year Class, under provisions of the plan, became vested to the
participants January 1, 1961.
Employe suggestion plan - U. S. Steel continues to encourage and reward
the creative abilities of its non-management employes through the employe
suggestion plan. During 1960, a record number of ideas were accepted and
installed for which employes were awarded approximately $490,000.
PENSION TRUSTS
The amounts shown in the table for the current service costs of pensions are
based on actuarial rates determined by an independent actuary and represent
full provision for such costs for 1960 and for 1959. During 1960, in the light
of a review of U. S. Steel's actual experience, certain actuarial service and
mortality tables and the interest rate were refined, and costs were more directly
related to the level of operations. If these refinements had not been made,
total pension costs in 1960 would have been increased to approximately $122
million because of increased pension benefits made effective following negotiations
with labor unions during the year.
Although full provision was made for current service pension costs for the
year 1960, it was determined that because of the reduced level of steel operations
no payments be made toward funding of past service cost. In 1959 it
was also determined that no payments be made in that year toward the funding
of past service pension cost. Past service cost applies against the actuarial cost
of non-contributory pensions for service rendered prior to March 1, 1950, the
effective date of the present plan. The cost which had not been funded at that
date was then estimated at $496 million of which approximately $207 million
remained unfunded as of December 31,1960.
There is no unfunded past service cost in connection with contributory pensions,
since no service prior to the date of employe participation is involved
in determining benefits.
18
Cost of Employe Benefits
Pension costs
N on-contributory part of pension plan
Funding of current service cost (including interest on past
service cost). . . . . . . . . . . . . .
Funding of portion of past service cost. . . . . . . .
Total non-contributory pension costs. . . . . .
Contributory part of pension plan - current service cost.
Total pension costs.
Social security taxes . . . . . . . . . .
Insurance costs. . . . . . . . . . . . .
Supplemental unemployment benefit costs.
Savings fund costs . . . . . . . . . . .
Payments to industry welfare and retirement funds and other
employe benefit costs.
Total cost .................. .
1960 1959
$ 81,426,355 $ 94,677,379
81,426,355 94,677,379
5,799,229 9,679,252
87,225,584 104,356,631
56,212,263 46,978,835
55,713,770 20,981,897
8,467,616 10,902,835
11,735,880 11,541,557
27,314,547 26,406,745
$246,669,660 $221,168,500

300
200
100
Registered Stockholders
Thousands at Year End
o 1940 '45 '50 '55 1960
The assets, less reserves, of the combined pension trusts were $1,338.4
million at December 31, 1960, and $1,228.8 million at December 31, 1959,
as set forth in the statement appearing on page 38. These funds are held by
the trustee, United States Steel and Carnegie Pension Fund (a non-profit
Pennsylvania membership corporation), solely for the payment of benefits
under the U. S. Steel pension plan, and were adequate at the respective dates
to meet currently accruing pension costs incurred since the adoption of the
present contributory and of the present non-contributory parts of the pension
plan in 1940 and 1950, respectively, as well as to pay full pensions to all
those then entitled to receive them.
UNITED STATES STEEL FOUNDATION, INC.
United States Steel Foundation, Inc" which was formed in 1953, continues
to provide aid for charitable, educational and scientific organizations and
activities, A contribution of $6,0 million was made by U, S, Steel to the
Foundation in 1960.
CAPITAL STOCK AND STOCKHOLDERS
As of December 31, 1960, there were 54,033,307 shares of common stock
outstanding, an increase of 72,300 shares which were purchased during 1960
upon exercise of options granted in prior years to key management employes
under the Stock Option Incentive Plan. No change has occurred in the
3,602,811 shares of preferred stock outstanding,
At the end of 1960, the outstanding shares were held by 321,834 registered
holders, Of these, 61,114 held preferred stock, 274,918 held common stock,
and 14,198 held both classes of shares, In the year, the number of registered
holders increased by 6,030, bringing the total holders to a new peak.
About 296,000 stockholder accounts are in the names of individuals, and
Stockholders and Shares
December 31 , 1960
Preferred Common Total
Registered in names of: Holders Shares Holders Shares Holderst Shares
Individuals-Women 31,516 909,246 116,375 14,597,952 140,721 15,507,198
Men. 14,689 473,908 89,129 13,113,344 100,115 13,587,252
Joint accounts . 6,427 155,143 49,952 3,925,467 54,982 4,080,610
Total, 52,632 1,538,297 255,456 31,636,763 295,818 33,175,060
Charitable and educationalt . 1,349 117,962 1,493 643,015 2,634 760,977
Insurance companies, 183 415,929 260 836,649 371 1,252,578
Industrial and other companies. 639 124,815 2,314 1,153,608 2,764 1.278,423
Trustees, guardians and estates. 5,083 243,430 13,247 2,513,349 17,741 2,756,779
Brokers, nominees and others* . 1,228 1.162,378 2,148 17,249,923 2,506 18,412,301
Total, 61,114 3,602,811 274,918 54,033,307 32 1,834 57,636,118
t 14,198 are holders of bOlh preferred and common shares.
t Includes lIIedical ami religious orgallizatiolls. fOllndaliolls, hospitals. libraries.
* MallY inslituliollai illl eSlors, illcluding those ill olher listed categories, hold stock in the name of nominees,
19

no one of them holds of record as much as two-tenths of one per cent of
either the preferred or common stock. Excluding shares of common stock held
in the Savings Fund Plan Trust, reported on page 17, the largest holding of both
preferred and common stock among other than individual holders is less than
one and one-half per cent of both classes of shares, these shares in turn being
beneficially owned by many individuals as is the case generally with stock
registered in the names of brokers, nominees, trustees and estates. A statement
of the number of stockholders and number of shares as of December 31, 1960,
is shown on the preceding page.
PUBLIC ACCEPTANCE
During 1960 United States Steel embarked on one of the most significant programs
ever undertaken by a major industrial enterprise. Called Watching
America Grow, it was designed to recognize the real achievements and true
economic strength of America.
With interesting facts about people and business, assembled by Lowell
Thomas from many available sources and then reported by him in newspapers,
magazines and on television, U. S. Steel was able to reach upwards of 80 million
people with the news of America on the move. Other companies and other
industries, each in their own way, joined in generating similar programs.
As in former years, U. S. Steel also actively sought to gain a broader public
understanding of its policies, actions, problems and products. Various officials
delivered major talks on pertinent subjects in different parts of the country,
and in Canada, as well.
One of the year's most widely acclaimed television presentations, sponsored
by U. S. Steel during the holiday season, was the half-hour Project 20
program in color, The Coming of Christ. Throughout the year on the CBS network,
The United States Steel Hour continued to bring fine dramatic entertainment
into the homes of millions of viewers.
American schools, colleges and civic organizations benefited from a grant
by U. S. Steel Foundation, Inc., that made possible the nation-wide distribution
of a spectacular new film series, Horizons of Science, designed to interest
students in scientific careers. Sixty-six sets of ten different films, which are in
color and will be seen in the next several years by more than 17 million youngsters
and adults, were placed in major audio-visual centers and a number of
key metropolitan areas.
Turning to modern algebra after last year's successful courses in atomic age
physics and modern chemistry, Continental Classroom expanded its coverage
to 170 stations for daily telecasts to a combined audience in excess of 500,000.
U. S. Steel is among the sponsors of this increasingly popular program.
U. S. Steel also published two new teaching aids. One of these was a booklet
containing ten unusual laboratory experiments directly related to the chemistry
and physics of steel and the other a flow chart showing how coal chemicals
are made. In addition to the large number of requests received for these two
new aids, almost 25,000 requests for other teaching aids and related materials
20

Hailed by the press as
"a stunning work of permanence
... a program of exceptional
beauty and reverence,"
U. S. Steel's Christmas coIO/·cast,
"The Coming oj Christ,"
was produced by Don Hyatt
oj NBC's "Project 20."
made available by United States Steel were received from teachers and
students in American and foreign schools.
1'1
In the light of the recent period of low production, it is not amiss to recall
that we have had other periods of low production and have worked our way
out of them. Nor should we forget that over the sixty-year period of its
existence U. S. Steel's production has averaged about 75 per cent of its capacity
to produce. A glance at the chart on page 5 showing the variation in
shipments of steel products between quarters in 1960 will give some appreciation
of the problems faced by the entire organization in coping with the ups
and downs of industrial activity and the consequences to employment which
have followed the protracted strike of 1959.
No one in U. S. Steel forgets that other materials are competitive with steel
and that many other very competent companies produce and market steel.
There is, moreover, increasing competition among American and foreign
steel producers for the markets at home and abroad. Thus U. S. Steel lives
and must strive in a highly competitive atmosphere.
One of the basic answers to our ability to compete lies in the developing
technology of steel and in originating new and improved steel products. Stockholders
will recognize that a larger proportion of this report than usual has
been devoted to telling the story of research and new products, improved raw
materials and better methods and processes. It may be said fairly that more
and more time and energy of the organization is being devoted to these phases
of our affairs, and the results are beginning to show in more new products and
better methods of manufacturing.
Competitive roads have always been and always will be difficult to travel,
but with U. S. Steel's capable organization and with an increasing flow of
creative and innovating ideas, products and processes, even the most difficult
of these roads should prove readily traversable.
Under the goad of such competition we achieve better service to our customers
and more satisfactions to consumers and thus aid in the economic
growth of our nation. Stockholders will find the statement on "Economic
Growth and Steel" in the financial summary an interesting commentary and
an aid to understanding national growth.
In all of the nation's economic growth steel has a singular part to play. And
all of us in United States Steel - stockholders and employes alike - have
essential roles in the total contribution which our Corporation can and does
make to our nation's well-being.
February 28, 1961
21
Chairman, Board of Directors

This modern continuous quenching and drawing furnace
at the Homestead District Works
near Pittsburgh is used to produce superior quality
heat treated, alloy plates.

Financial Summary
Robert C. Tyson,
Chairman of Finance Committee
Economic growth and steel
Much is being said by many these days about economic growth. Significant
economic growth is impossible in our modern era without the abundant production
and fabrication of steel into thousands of kinds of tools, structures and
other useful products. Conversely, without economic growth a major part of
the market for steel must wither away. No industry has a greater stake in
economic growth than the steel industry, or is likely to suffer more widespread
injury should national growth falter.
These truths are virtually self-evident. Iron is abundant in the earth's crust
and iron ore is fortunately found in such concentrations that iron - and hence
steel - is among the least costly of all metals. That is of great importance, but
beyond that, as described in another part of this report, steel is an extraordinarily
useful metal capable of being made to meet a wide range of specifications.
Over 95 per cent of our civilization's metal requirements are met by
steel. It is out of steel that the tools of production, through which growth is
achieved, are fashioned. Steel is embodied in the nation's accumulation of
durable wealth. The goods and services we enjoy require the presence and use
of steel in mines, farms, forests and factories; in power, transportation and
communication systems; and in business, residential and public structures. Its
accumulated presence gives economic power and its expansion is involved in
economic growth.
:23

Statistics adequate to measure accurately the physical growth in this productive
and useful wealth do not exist; and this renders all controversies over
percentage rates of economic growth, whether at home or abroad, quite
academic. Only fragmentary information is available. The American Iron and
Steel Institute has, for example, estimated that the accumulated total of steel
products installed and daily serving the nation is over 1 Yz billion tons - more
than 8 tons per person. There is also, among the more accurate data, the long
record of this country's annual steel production out of which additions to
accumulated wealth are fashioned. During this century, as may be noted in the
chart on page 25, there has been a majestic upward sweep in steel production.
In recent years production has been nine or ten times what it was at the turn
of the century - an average increase of 3 Yz to 4 per cent per annum compounded.
The comparable population growth rate was about 1 Yz per cent.
As a measure of the increasing economic usage of steel, production figures
are significantly deficient in one respect. With the passage of the years, and
as a result of intensive research, steel has changed and become better. In
numerous instances a ton of steel today can and does serve purposes that
formerly required more than a ton - in some instances nearly two tons. New
steels can and do, moreover, serve useful new purposes that neither steel nor
other materials formerly could practically serve. Steel's contribution to
economic growth has increased more rapidly than registered by the tonnage
data. Because steel quality improvements have not been adequately quantified
it interestingly follows that steel price increases have not been adequately
qualified. A part of additional price is assignable to additional quality.
Because of this nation's great wealth in the form of installed steel products,
it can on occasion refrain without great hardship from adding thereto. In
wartime, for example, industrial capacity is diverted to armament production
and the existing peacetime durable goods are made to last a little longer. There
are other occasions. For example, in the 1930's per capita steel production
averaged only three-fourths as much as it averaged in the "new era" 1920's.
In the 1950's when economic growth reflected the world-wide "catch-up"
demand caused by the war, per capita steel production averaged more than
double that of the prewar 1930's. The fact that the "catch-up" demand may
now have been satisfied renders considerations of economic growth of particular
interest to steel producers at this time.
ECONOMIC GROWTH
Although economic growth is so important to a steel producer, mere growth in
terms of just producing an ever bigger pile of goods is unacceptable as an
overriding American objective. It leaves out too many other popularly
cherished notions. If, for example, the maximum possible production were all
that was desired there would be no restrictions on the weekly hours of labor;
there would be fewer or no restrictions on the labor of youth; costly and timeconsuming
"higher" education would be restricted to those of demonstrated
talent the more quickly to add the less talented to manual labor forces; unem-
24

Million
Persons
300
200
100
o 1900
Growth In Steel
1910 1920
Steel Ingot
Production
U.S.A.
1930 1940 1950
1960
M illion
Tons
ployment and pension payments, if sanctioned at all, would be contingent on
need; no minimum wage would preclude those not worth it from working at
lesser rates to contribute their bit to the pile of products; strikes and lockouts
would be prohibited by law. This nation could easily - but would not - choose
to win a production race at such price. Mere physical growth is an inadequate
measure of mounting satisfaction that an economy provides to those living
under it - especially if such growth is dictated rather than voluntarily achieved.
International comparisons that are based on such measurements are thus
incomplete or even misleading.
Some of the values that are surely sought and prized in the American scale
of Jiving, but not measurable by production statistics, can be illustrated in the
long records of U. S. Steel. Thus, fifty years ago the weekly hours of labor in
U. S. Steel were nearly 70. Over the years the average hours actually worked
decreased about 50 per cent. In the same period average weekly employment
costs per employe, which include payments to and for the employe, increased
25
120
100
80
60
40
20
o

Plant & Equipment
Expenditures
VS.
Depreciation plus
Income Reinvested B illions
r----------------------, $40
1946
Expenditures
Depreciation
plus
Income
Reinvested
U. S. corporations excludmg
banks and Insurance companies
Source : U. S. Department of Commerce
1960 data partly estimated
30
20
10
o
other enterprises who do business with them as their capabilities as customer
or supplier are undermined.
In former times when the tax rate on corporate income was smaller and
inflation was not a big factor, these same injustices and impediments to growth
were present but not of as great moment. But with the enormous increases in
the tax rate until it is now over 50 per cent - some three times the pre-war
rates - they are indeed worthy of most serious consideration and correction
if we are to have economic growth.
PROFITS AND PROGRESS
An intangible but potent obstacle to growth, to the extent it exists in some
public and political quarters, is the notion that profits and sin are synonymous.
This may represent a semantic success in generating hostility toward profits
as such, but it fiies in the face of both good reasoning and the historical record.
The real truth is that profits and progress are synonymous. All peacetime years
for which the records are available and in which production and employment
have been regarded as prosperously above normal have been years in which
profits were greater than average. All years regarded as depression years have
been years in which profits have been smaller or replaced by losses.
That profits, particularly that part which is reinvested, are essential to
growth in America can be statistically illustrated. Thus growth requires investment
in new tools of production. The corporations are the big purchasers of
such tools. The funds they generate for such purchases are the amount
recorded as depreciation and as reinvested income. In the accompanying chart
of data compiled by the Department of Commerce one of the lines shows for
the years since 1946 the sum of the depreciation and income reinvested of
American corporations, excluding banks and insurance companies. The other
line shows their plant and equipment expenditures. That the two Jines change
in generally similar fashion is apparent. There are two periods of disparity in
movement- for four years in the early 1950's, and for the two years, 1956
and 1957. In both instances expenditures significantly exceeded funds available
from depreciation and income reinvested. The first period was one during
which the Government permitted accelerated amortization of certain facilities
in the calculation of taxable income, thus illustrating the importance to growth
of realistic treatment of depreciation. As for 1956 and 1957, each of these
years was preceded by one in which total corporate profits were greater than
in any previous year, illustrating the power of profit in promoting growth. In
both periods the corporations drew heavily on "outside" sources of funds to
help finance their capital expenditures, illustrating a growth-multiplying consequence
of expanding cash flows.
If the nation is to enjoy the economic growth of which it is capable, it is
neither necessary nor desirable that profits be subsidized. It is both necessary
and desirable that they be not unwarrantably condemned or "squeezed" - as
of late - for they are a major incentive and principal means of achieving
economic growth in our land.
29

Summary of 1960
Financial Operations
Additions to working capital
Income ...... .
Add - Wear and exhaustion of facilities
Proceeds from sales and salvage of plant and equipment .
Proceeds from sale of common stock under Stock Option Incentive Plan
Miscellaneous additions
Total additions
Deductions from working capital
Expended for plant and equipment . $492,401,892
Less - Use of funds set aside in prior years . 195,000,000
297,401,892
Added to costs applicable to future periods 14,322,103
Reduction in total long-term debt . . . . 32,805,544
Dividends declared on preferred and common stocks 187,235,868
Total deductions . . . . .
Reduction in working capital . . . . . . . . . . . . . . . . . . . .
Working capital per Consolidated Statement
of Financial Position
December 31, 1960
December 31, 1959
$608,094,605
615,538,386
Reduction .......•.•..................
30
$304,170,990
208,424,291
8,265,089
2,932,500
528,756
524,321,626
531,765,407
$ 7,443,781
$ 7,443,781

Consolidated Statement of
Income
1960 1959
Products and services sold . • • • . • • • . • . • . . . . . .. $3,698,494,931 $3,643,040,035
Costs
Employment costs
Wages and salaries
Pensions and other employe benefits (see pages 18 and 19).
Products and services bought . .
Wear and exhaustion of facilities .
Interest and other costs on long-term debt.
State, local and miscellaneous taxes. . . .
Estimated United States and foreign taxes on income
Total
Income . ....••.....................
Dividends declared
On cumulative preferred stock ($7 per share)
On common stock ($3 per share)
Income reinvested in business
31
1,453,317,932
246,669,660
1,355,034,915
221,168,500
1,699,987,592 1,576,203,415
1,091,166,958
208,424,291
16,942,052
107,803,048
270,000,000
3,394,323,941
304,170,990
25,219,677
162,016,191
$ 116,935,122 $
1,278,199,885
189,854,452
17,647,717
93,571,165
233,000,000
3,388,476,634
254,563,401
25,219,677
161,816,789
67,526,935

Consolidated Statement of
Financial Position
Current assets
Less
Cash ...
United States Government securities, at cost (approximates market)
Receivables, less estimated bad debts
Inventories (details on page 36)
Total
Current liabilities
Working capital
Accounts payable
Accrued taxes, less United States Government
securities of $154,000,000 at December 31, 1960
and $153,300,000 at December 31, 1959.
Dividends payable . . . . . . . . .
Long-term debt due within one year .
Total
Miscellaneous investments, less estimated losses
United States Government securities set aside
for property additions and replacements ..... .
Plant and equipment, less depreciation (details on page 35)
Operating parts and supplies . . .
Costs applicable to future periods. .
Total assets less current liabilities
Deduct
Long-term debt (details on page 36)
Reserves for insurance, contingencies and accident and hospital
expenses (details on page 35) . . . . . . . . . . . . . .
Excess of assets over liabilities and reserves
Ownership evidenced by
Preferred stock, 7% cumulative, par value $100 (authorized
4,000,000 shares; outstanding 3,602,811 shares) . . . .
Common stock (authorized 90,000,000 shares; outstanding
54,033,307 shares at December 31, 1960 and 53,961,007
shares at December 31, 1959) ..... .
Par value $16% per share. . . . . . . .
$ 900,555,117
Income reinvested in business (see page 31
for addition of $116,935,122 in 1960).
2,041,031,287
Total
32
Dec. 31, 1960 Dec. 31, 1959
$ 276,501,195 $ 258,430,638
175,218,208 257,015,168
218,523,857 311,985,387
725,599,116 596,341,886
1,395,842,376 1,423,773,079
373,065,094 452,895,240
336,194,106 275,756,872
46,835,794 46,793,037
31,652,777 32,789,544
787,747,771 808,234,693
608,094,605 615,538,386
43,036,483 41,402,425
300,000,000 495,000,000
2,787,553,310 2,511,840,798
48,898,855 49,924,902
51,518,319 37,196,216
3,839,101,572 3,750,902,727
422,778,670 454,447,447
114,455,398 112,727,898
$3,301,867,504 $3,183,727,382
$ 360,281,100 $ 360,281,100
2,941,586,404 2,823,446,282
$3,301,867,504 $3,183,727,382

Common stock
Under the Stock Option Incentive Plan approved
by stockholders in 1951 which made available up to
2,600,000 shares, options to purchase common stock
have been granted at various times beginning in 1951
to key management employes, such shares of stock to
be made available from authorized unissued or reacquired
common stock at market price on the date the
options are granted. An option may be exercised in
whole at any time, or in part, from time to time during
the option period, except that during the first year of
the option period it may be exercised only in the event
of death or retirement of the optionee. The option
period begins on the date the option is granted and
ends ten years thereafter, except in cases of death,
retirement or other earlier termination.
During 1960, options for 294,200 shares were
granted to 199 employes at the then market price of
$82.00 per share. By exercise of options granted in
prior years, 62 optionees purchased 2,500 shares at
$20.50 per share, 20,400 shares at $18.50 per share,
30,450 shares at $48.00 per share and 18,950 shares
at $55.00 per share during 1960.
At December 31, 1960, 277 optionees held options
to purchase 518,705 shares at prices ranging from
$18.50 to $82.00 per share for a total of $35,759,810
on options granted at various .times beginning in 1951,
and 267,500 shares were available for future options.
U. S. Government securities set aside
for property additions and replacements
At December 31, 1960, completion of authorized
additions to and replacements of facilities required an
estimated further expenditure of $500,000,000. To the
'end of 1959, $495,000,000 of U. S. Government securities
had been set aside to cover in part such authorjzed
expenditures. During 1960, $195,000,000 was used
for such purpose leaving a balance of $300,000,000
set aside at December 31, 1960.
Wear and exhaustion of facilities
For a number of years, U. S. Steel has followed
the policy of reflecting accelerated depreciation on the
33
Notes to
Financia.l Statements
cost of new facilities in the first few years of their lives
when the economic usefulness is greatest. As permitted
under the Internal Revenue Code the declining balance
method of depreciation is being applied to the cost of
certain facilities; and the cost of certain other facilities
is covered by Certificates of Necessity under the Defense
Production Act of 1950 and is being written off
at the rate of 20 per cent per year. The effect thereof
is to charge to income a greater portion of their cost
in the earlier years of life and, therefore, follows the
principle of accelerated depreciation.
The amount included in wear and exhaustion for the
cost of facilities not covered by the declining balance
method of depreciation or Certificates of Necessity
is for the most part related to U. S. Steel's rate of
operations.
Reserves for insurance, contingencies
and accident and hospital expenses
U. S. Steel is, for the most part, a self-insurer of
its assets against fire, windstorm, marine and related
losses. The insurance reserve of $50,000,000 is held
available for absorbing possible losses of this character,
and is considered adequate for this purpose.
The reserves for contingencies and accident and
hospital expenses of $64,455,398, provided mainly in
previous years by charges to operations, are held for
exceptional unanticipated losses other than those covered
by the insurance reserve.
Other items
Products and Services Sold - Products and services
sold includes interest, dividends and other income of
$49,637,579 in 1960 and $45,077,476 in 1959.
Wages and Salaries - Wages and salaries totaled
$1,503,971,235 in 1960 of which $1,453,317,932 was
included in costs of products and services sold and
the balance was charged to construction.
Products and Services Bought - Products and services
bought reflects the changes during the year in
inventories and deferred costs. These items increased
during 1960 approximately $143,000,000.

Independent
Auditors' Report
PRICE WATERHOUSE & Co.
To the Stockholders of
United States Steel Corporation:
56 PINE STREET
NEW YORK 5
February 28, 1961
As independent auditors elected at the annual meeting of stockholders of United
States Steel Corporation held on May 2, 1960, we have examined the Consolidated
Statement of Financial Position of United States Steel Corporation and
subsidiaries at December 31, 1960 and the Consolidated Statement of Income for
the year 1960. Our examination was made in accordance with generally accepted
aUditing standards and accordingly included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying Consolidated Statement of Financial Position
and related Statement of Income present fairly the position of United States Steel
Corporation and subsidiaries at December 31, 1960 and the results of the year's
operations, in conformity with generally accepted accounting principles applied
on a basis consistent with that of the preceding year.
34

Plant and equipment (at cost)
Details of
Selected Items
Balance Balance
Dec. 31, 1959 Additions Deductions Dec. 31,1960
Land $ 82,493,162 $ 1,146,440 $ 119,954 $ 83,519,648
Plant, mineral and manufacturing 5,071,111,975 426,028,204 75,998,696 5,421,141,483
Transportation 738,421,578 65,227,248 5,330,756 798,318,070
Less
Total . 5,892,026,715 492,401,892 81,449,406 6,302,979,201
Depreciation and depletion
Plant, mineral and manufacturing 3,005,867,456 200,546,995 74,956,617 3,131,457,834
Transportation . 374,318,461 13,616,808 3,967,212 383,968,057
Total 3,380,185,917 214,163,803t 78,923,829 3,515,425,891
Net $2,511,840,798 $278,238,089 $ 2,525,577:\: $2,787,553,310
t Wear and exhaustion of $208,424,291 shown in the Consolidated
Statement of Income comprises depreciation and depletion of
$214,163,803 (including amortization of emergency facilities of
$13,766,422), less profit of $5,739,512 resulting from sales.
Reserves
:j: Includes $8,265,089 proceeds from sales and salvage of plant and
equipment, less profit of $5,739,512 resulting therefrom.
Balance Additions Balance
Dec. 31, 1959 charged income Deductions Dec. 31,1960
Estimated bad debts $ 12,500,325 $ 342,955 $ 235,216 $ 12,608,064
Estimated losses on investments 5,578,033 3,781 39,830 5,621,644
Total deducted from assets 18,078,358 346,736 195,386 18,229,708
Insurance 50,000,000 2,780,235 2,780,235 50,000,000
Contingencies 53,273,672 1,727,500 55,001,172
Accident and hospital expenses. 9,454,226 20,014,327 20,014,327 9,454,226
Total 112,727,898 22,794,562 21,067,062 114,455,398
Total reserves $130,806,256 $23,141,298 $21,262,448 $132,685,106
35

Details of
Selected Items (continued)
Inventories
Ore, limestone, coal and coke.
Semi-finished products
Non-ferrous metals
Finished products .
Supplies and sundry items
Cost (less billings) of contracts in progress
Total .
The major portion of inventories is carried at cost as determined under the last-in,
first-out method, and the remainder is carried at cost or market, whichever is lower.
Long-term debt
Description
United States Steel Corporation
Sinking Fund Debentures (Callable)
Serial Debentures (Callable) . . .
Bessemer and Lake Erie Railroad Company
Pittsburg, Bessemer and Lake Erie Railroad Company
First Mortgage Series A (Callable). . . . . .
Duluth, Missabe and Iron Range Railway Company
First Mortgage Serial Bonds (Callable)
Elgin, Joliet and Eastern Railway Company
First Mortgage Series A (Callable) .
Union Railroad Company
First and Refunding Mortgage Series A (Callable) .
Real estate mortgages and purchase money obligations
Bonds covered by deposits with trustees
Total long-term debt
Less amount due within one year
Long-term debt due after one year
36
Interest
rates
4
Var.
218
2Vz
31;4
3
Years of
maturity
1983
1961-1964
1996
1961-1962
1970
1996
Dec. 31,1960 Dec. 31, 1959
$292,832,700 $222,067,124
173,259,739 158,530,393
23,085,211 25,617,557
165,407,391 122,481,961
51,411,176 52,690,288
19,602,899 14,954,563
$725,599,116 $596,341,886
Outstanding Decrease
Dec. 31, 1960 in year
$300,000,000
120,000,000 $30,000,000
9,841,000 195,000
2,400,000 1,200,000
12,860,000 27,000
6,579,000 114,000
2,541,447 1,301,544
210,000 3fJ,OOO
454,431,447 32,805,544
31,652,777 1,136,767
$422,778,670 $31,668,777
-----

United States Steel and Carnegie Pension Fund, Trustee
(Described on pages 18-19)
STATEMENT of ASSETS
Investments, at cost (less than aggregate market or estimated fair value)
(details on page 39) .
Cash
Accrued interest and other receivables
Contributions receivable from employing companies in subsequent period
Payables
Assets
Reserves for investments
Assets, less reserves
STATEMENT of CHANGES DURING the YEAR
Dec. 31, 1960
$1,360,593,945
2,620,641
9,116,326
5,562,385
142,677
1,377,750,720
39,314,000
$1,338,436,720
Year 1960
Balance at beginning of year $1,228,792,515
Additions
Receipts from employing companies 87,225,584
Receipts from participating employes 6,796,192
Income from investments . . . . . 55,516,186
Gain on disposition of investments . 3,555,929
Deductions
Pension payments
1,381,886,406
42,515,844
Refunds to withdrawing employes 933,842
43,449,686
Balance at end of year. . . . . . . . . . . . . . . . . . . . . . . . . $1,338,436,720
38
Dec. 31, 1959
$1,241,887,029
3,642,727
7,954,253
15,558,265
936,769
1,268,106,515
39,314,000
$1,228,792,515
Year 1959
$1,103,018,282
104,356,631
7,188,181
46,925,002
2,039,817
1,263,527,913
33,972,262
763,136
34,735,398
$1,228,792,515

United States Steel and Carnegie Pension Fund, Trustee
SUMMARY of INVESTMENTS
Securities of United States Steel Corporation and Subsidiaries
United States Steel Corporation Serial Debentures $ 24,446,870
Elgin, Joliet and Eastern Railway Company First Mortgage Series A 2,685,425
Pittsburg, Bessemer and Lake Erie Railroad Company
First Mortgage Series A. . . . . . . . . . . 2,305,898
At December 31, 1960
Union Railroad Company First and Refunding Mortgage Series A 6,579,000 $ 36,017,193
Other bonds, notes and debentures
United States Government 167,524,631
Other 447,456,829 614,981,460
Preferred stocks 1,581,483
Common stocks (including bank and insurance company stocks) 531,586,975
Mortgages
Oil, gas and other payments and royalties
Properties owned . . . . . .
Total investments, at cost
To the Board of Directors of
United States Steel and Carnegie Pension Fund:
We have examined the Statement of Assets, Statement of
Changes During the Year and Summary of Investments of
the combined pension trusts administered by United States
Steel and Carnegie Pension Fund as trustee. Our examination
was made in accordance with generally accepted auditing
standards and included confirmation of the cash and
investments owned at December 31, 1960 by certificates
obtained from the depositaries and custodians, or by inspec-
39
18,231,984
41,273,022
116,921,828
$1,360,593,945
tion, and such tests of the accounting records and such
other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the foregoing statements present fairly
the combined assets of these pension trusts at December 31,
1960 and the changes therein during the year.
New York 5, N. Y.
February 28, 1961.

American Bridge Division, 525 William Penn Place, Pittsburgh 30, Pa.
American Steel & Wire Division, Rockefeller Bldg., Cleveland 13, Ohio
Columbia-Geneva Steel Division, 120 Montgomery St., San Francisco 6, Cal.
Consolidated Western Steel Division, 5700 So. Eastern Ave., Los Angeles 22, Cal.
Michigan Limestone Division, 2650 Guardian Building, Detroit 26, Mich.
National Tube Division, 525 William Penn Place, Pittsburgh 30, Pa.
Oil Well Supply Division, 2001 North Lamar Street, Dallas 2, Texas
Oliver Iron Mining Division, Wolvin Building, Duluth 2, Minn.
Pittsburgh Steamship Division, Rockefeller Building, Cleveland 13, Ohio
Tennessee Coal & Iron Division, P. O. Box 599, Fairfield, Ala.
United States Steel Homes Division, 525 William Penn Place, Pittsburgh 30, Pa.
United States Steel Products Division, 30 Rockefeller Plaza, New York 20, N. Y.
United States Steel Supply Division, 208 So. LaSalle Street, Chicago 4, Ill.
Universal Atlas Cement Division, 100 Park Avenue, New York 17, N. Y.
Bessemer and Lake Erie Railroad Company, Frick Building, Pittsburgh 19, Pa.
Birmingham Southern Railroad Co., Parker Building, Fairfield, Ala.
Carnegie Natural Gas Company, Frick Building, Pittsburgh 19, Pa.
Duluth, Missabe and Iron Range Ry. Co., Wolvin Building, Duluth 2, Minn.
Elgin, Joliet and Eastern Ry. Co., 208 So. LaSalle Street, Chicago 4, Ill.
Newburgh and South Shore Railway Co., Frick Building, Pittsburgh 19, Pa.
Orinoco Mining Company, Apartado No. 2736, Caracas, Venezuela
Pittsburgh & Conneaut Dock Company, Conneaut, Ohio
Quebec Cartier Mining Company, Port Cartier, Province of Quebec, Canada
Union Railroad Company, Frick Building, Pittsburgh 19, Pa.
United States Steel Export Company, 100 Church Street, New York 8, N. Y.
Transfer Agents - Preferred and Common Stock
Registrars
Offices of the Corporation
71 Broadway, New York 6, N. Y
51 Newark Street, Hoboken, N. J.
Preferred Stock
Common Stock
United States Steel Corporation
PRESIDENT
J. Donald Rollins
Van H. Leichliter
J. D. McCall
Charles W. Lee
Carl G. Hogberg
Henry J. Wallace
Frederick F. Murray
Christian F. Beukema
Charles R. Khoury
Arthur V. Wiebel
David H. Boyd
Loring S. Brock
John H. Morava
Charles B. Baker
Fred W. Okie
Claud D. Cotten, Jr.
Thomas H. Evans
Fred J. Voss
Thomas D. Beven
Daniel J. Smith
Francis Thomas
Keith C. Stevens
Lloyd J. Severson
Fred W. Okie
William S. Morrison
City National Bank and Trust Company
of Chicago
208 South La Salle Street, Chicago 90, Ill.
Chemical Bank New York Trust Company, New York 15, N. Y
Continental Illinois National Bank and Trust Company of Chicago,
Chicago 90, Ill.
Morgan Guaranty Trust Company of New York, New York 15, N. Y
Continental Illinois National Bank and Trust Company of Chicago,
Chicago 90, Ill.

PRINTED IN U.S.A.
Directors
United States Steel Corporation
71 Broadway, New York 6, N. Y.
525 William Penn Place, Pittsburgh 30, Pa.
Charles H. Bell Philip R. Clarke John A. Fuller John M. Meyer, Jr.*
James B. Black Cleo F. Craig"'t Clifford F. Hood'" Alexander C. Nagle*t
Roger M. Blough*t Harry P. Davison"'t Arthur A. Houghton, Jr.* Joseph P. Spang, Jr.'"
Cason J. Callaway Benjamin F. Fairless* C. Jared Ingersoll'" Robert C. Tyson':'t
Enders M. Voorhees"'t Leslie B. Worthington':'t
Officers
* Member of Executive Committee t Member of Finance Committee
Roger M. Blough
Leslie B. Worthington
Robert C. Tyson
John S. Tennant
William H. Lang
Wilbert A. Walker
Benjamin L. Rawlins
R. Conrad Cooper - Personnel Services
Edwin H. Gott - Production
Stephen M. Jenks - Engineering and Research
John E. Angle
Marcus 1. Aurelius
James B. Austin
Russell M. Braund
Phelps H. Adams
Herbert F. Byrne
Robert C. Colbaugh, Jr.
Jesse F. Core
Bay E. Estes, Jr.
Francis M. Goodwin, 1r.
Robert W. Graham
Chairman of Board of Directors
President and Chairman of Executive Committee
Chairman of Finance Committee
General Counsel
Administrative Vice President and Treasurer
Administrative Vice President and Comptroller
Secretary and Assistant General Counsel
Executive Vice Presidents
Administrative Vice Presidents
Marcus M. Chapman James C. Gray
Bennett S. Chapple, J r. R.Heath Larry
John H. Elliott Robert M. Lloyd
Marcus M. Fisher Maxwell D. Millard
Charles H. Williams
Vice Presidents
J. Douglas Darby - Assistant to President
Phillips Hawkins Wilbur L. Lohrentz
William L. Hearne Oscar T. Marzke
Randolph W. Hyde Norman C. Michels
Leverne J. King Ralph C. Moffitt
James W. Kinnear, Jr.
Max W. Lightner
Edward C. Logelin
•
Howard 1. Mullin
Edward C. Myers
James L. Ortner
Norman B. Obbard - International
John Pugsley - Accounting
Richard F. Sentner - Commercial
Austin J. Paddock
Edgar B. Speer
George M. Thursby
C. Burton Vernooy
Lewis M. Parsons
Hugh J. Phillips, Jr.
E. Grosvenor Plowman
Louis J. Rohl
J. Warren Shaver
Edwin L. Tindall
John L. Young
Thomas F. Lynch, Associate General Counsel Leroy L. Lewis, General Solicitor
Merrill Russell, A ssiSlant General Solicitor
•
Bradford B. Smith, Economist