us foundries and shops, pumping stations, electric
power plants, benzol plants, Portland cement works, and ore docks. Since
that time the Steel Corporation's investment here has practically been
doubled, and a number of subsidiary companies have built up great
industries in Gary. The Universal Portland Cement here, for example, is
said to be the largest plant of its kind in the world (daily capacity
30,000 barrels).

The United States Steel Corporation, organized in 1901 with a
capitalization of about $1,400,000, was an amalgamation of ten
independent companies, of which the Carnegie Steel Co. and the
Federal Steel Co. (of which Elbert H. Gary was president) were
perhaps the most important. The consolidation was effected under
the auspices of the late J. Pierpont Morgan, who negotiated the
purchase of Andrew Carnegie's properties for $303,450,000 in 5
per cent steel corporation bonds and $188,556,160 in common and
preferred stock. "The Value of the Carnegie Steel Co.," says A.
Cotter in _The Authentic History of the U.S. Steel Corporation_,
"was $75,000,000, though as a going concern it was worth
$250,000,000. Its earnings in a single year had been as much as
$40,000,000." Mr. Carnegie thereupon retired from business.

On Jan. 1, 1920, the corporation had a surplus of $493,048,000,
and the book value of the tangible assets was $1,917,730,000.
There were then outstanding $568,728,000 in bonds and
$868,583,000 in common and preferred stock. In 1919 strikes and
other causes reduced the production of finished steel to about 75
per cent of capacity, and at the beginning of 1920 the
corporation had unfilled orders amounting to more than 8,000,000
tons. The gross business of the corporation amounted to
$1,448,557,835 in 1919 as against $1,744,312,163 the year before.
The corporation's income for 1919, less operating expenses and
taxes, was in the neighborhood of $150,000,000.

Statistics of production for 1918 and 1919 are given below:

Production in Tons
1919 1918
Iron ore mined 25,423,000 28,332,000
Coal 28,893,000 31,748,000
Pig iron 13,481,738 15,700,561
Steel ingots 17,200,000 19,583,000
Finished steel 11,997,000 13,849,483