报告建议原先发行的每一股特别股全部换成面额300美元不必支付利息的债券，并且可分为十期以面额的50％赎回，总计将要发行面额10。8亿美元的债券，每年有1。08亿美元到期，并由公司以5；400万美元的价格赎回，同时公司每年将可因此增加5；400万美元的获利。
Like the wage…and/or…salary plan described under 3。 above； this arrangement will benefit both the Corporation and its preferred stockholders。 The latter are assured payment for their present shares at 150％ of par value over an average period of five years。 Since short…term securities yield practically no return at present； the non…interest…bearing feature is of no real importance。 The Corporation will convert its present annual charge of 25；000；000 for preferred dividends into an annual bond…retirement profit of 54；000；000 an aggregate yearly gain of 79；000；000。
就像是第3条所述的薪资奖金计画，这样的安排将可以让公司与其特别股股东一体受惠，后者可以确定在五年内收回现有特别股面额的150％，因为短期的有价证券实在是没有多少报酬率，所以不必付息的特点算是无关紧要，如此一来公司每年将可以减少2；500万的特别股股息，再加上每年多出5；400万美元的获利，加总之后将可获得每年7；900万的利益。
6。 Establishment of a Contingency Reserve of 1；000；000；000。：The Directors are confident that the improvements hereinbefore described will assure the Corporation of a satisfactory earning power under all conditions in the future。 Under modern accounting methods； however； it is unnecessary to incur the slightest risk of loss through adverse business developments of any sort； since all these may be provided for in advance by means of a Contingency Reserve。
6。建立10亿美元的或有负债准备：董事们有信心经过上述的安排，公司未来不管在任何情况下，都可以确保拥有令人满意的获利能力，然而在现今的会计原则下，公司最好不要承担任何可能的潜在损失的风险，因为最好能够事先先建立一个或有损失负债准备以兹因应。
The Special mittee has remended that the Corporation create such a Contingency Reserve in the fairly substantial amount of 1；000；000；000。 As previously set forth； the annual write…down of inventory to 1 will be absorbed by this reserve。 To prevent eventual exhaustion of the Contingency Reserve； it has been further decided that it be replenished each year by transfer of an appropriate sum from Capital Surplus。 Since the latter is expected to increase each year by not less than 250；000；000 through the exercise of the Stock Option Warrants （see 3。 above）； it will readily make good any drains on the Contingency Reserve。
特别委员会因此建议公司可以建立一个10亿美元的或有负债准备，就像是先前所述的，存货价值调整为1美元的差异将由这个准备来吸收，同时为了怕将来或有准备消耗殆尽，每年还将固定由资本公积提拨补充，因为后者透过股票选择权的运用每年将至少可以增加2。5亿美元（见前面第3点），所以随时准备好可供或有准备补充之用。
In setting up this arrangement； the Board of Directors must confess regretfully that they have been unable to improve upon the devices already employed by important corporations in transferring large sums between Capital； Capital Surplus； Contingency Reserves and other Balance Sheet Accounts。 In fact； it must be admitted that our entries will be somewhat too simple； and will lack that element of extreme mystification that characterizes the most advanced procedure in this field。 The Board of Directors； however； have insisted upon clarity and simplicity in framing their Modernization Plan； even at the sacrifice of possible advantage to the Corporation's earning power。
透过这样的安排，董事会必须坦承他们很遗憾还不能够向其它美国大企业一样，充分地运用各种方法，让股本、资本公积、或有负债与资产负债表其它科目互通有无，事实上我们必须承认，目前我们公司所作的分录还过于简单，根本没有达到一般业界那样能够利用最先进的手法，让整个会计程序神秘复杂化，然而对此董事会还是强调在规划革新方案时，还是必须坚持清楚明了的原则，虽然这样做会对公司的获利能力有所影响。
In order to show the bined effect of the new proposals upon the Corporation's earning power； we submit herewith a condensed Ine Account for 1935 on two bases； viz：
为了显示新方案对于公司获利能力的影响到底有多大？ 我们特别列出1935年分别在两种不同基础下的损益状况：
B。 Pro…Forma
Giving Effect to
Changes Proposed
Herewith
A。 As Reported
Gross Receipts from all Sources （Including Inter…pany） 765；000；000 765；000；000
Salaries and Wages 251；000；000
Other Operating Expenses and Taxes 461；000；000 311；000；000
Depreciation 47；000；000 （50；000；000）
Interest 5；000；000 5；000；000
Discount on Bonds Retired （54；000；000）
Preferred Dividends 25；000；000
Balance for mon （24；000；000） 553；000；000
Average Shares Outstanding 8；703；252 11；203；252
Earned Per Share （2。76） 49。80
In accordance with a somewhat antiquated custom there is appended herewith a condensed pro…forma Balance Sheet of the U。 S。 Steel Corporation as of December 31； 1935； after giving effect to proposed changes in asset and liability accounts。
为了配合有点老旧的会计原则，附件是美国钢铁1935年12月31日拟制性的合并资产负债表，在经过调整后的资产负债科目状况。
ASSETS LIABILITIES
Fixed Assets； net （1；000；000；000） mon Stock Par 1￠ （Par Value 87；032。52） Stated Value* （3；500；000；000）
Cash Assets 142；000；000 Subsidiaries' Bonds and Stocks 113；000；000
Receivables 。 56；000；000 New Sinking Fund Notes 1；080；000；000
Inventory 1 Current Liabilities 69；000；000
Miscellaneous Assets 27；000；000 Contingency Reserve 1；000；000；000
Other Reserves 74；000；000
Initial Surplus 389；000；001
Total （774；999；999） Total （774；999；999）
*Given a Stated Value differing from Par Value； in accordance with the laws of the State of Virginia； where the pany will be re…incorporated。
有别于原先的固定面额，现在的股本改为不固定面额，根据维吉尼亚州的法令，公司必须重新设立。
It is perhaps unnecessary to point out to our stockholders that modern accounting methods give rise to balance sheets differing somewhat in appearance from those of a less advanced period。 In view of the very large earning power that will result from these changes in the Corporation's Balance Sheet； it is not expected that undue attention will be paid to the details of assets and liabilities。
实在是不必要跟各位股东报告，更新过后的资产负债表与原先的报表将会有很大的不同，我想为了让公司的获利大增因此必须就资产负债科目做很大的调整，大家应该不会对此有太多的意见。
In conclusion； the Board desires to point out that the bined procedure； whereby plant will be carried at a minus figure； our wage bill will be eliminated； and inventory will stand on our books at virtually nothing； will give U。 S。 Steel Corporation an enormous petitive advantage in the industry。 We shall be able to sell our products at exceedingly low prices and still show a handsome margin of profit。 It is the considered view of the Board of Directors that under the Modernization Scheme we shall be able to undersell all petitors to such a point that the anti…trust laws will constitute the only barrier to 100％ domination of the industry。
总而言之，董事会这一连串措施，包含将厂房价值调为负数、薪水删掉、存货降到几乎为零，将可使美国钢铁在产业的竞争力大为增加，我们将可以因此以非常低的价格销售我们所生产的产品，同时还可以保有很好的获利，董事会也认为在这项更新计画之下，我们将可以彻底打败竞争对手，直到我们达到反托拉斯法100％市场占有率的最高上限。
In making this statement； the Board is not unmindful of the possibility that some of our petitors may seek to offset our new advantages by adopting similar accounting improvements。 We are confident； however； that U。 S。 Steel will be able to retain the loyalty of its customers； old and new； through the unique prestige that will accrue to it as the originator and pioneer in these new fields of service to the user of steel。 Should necessity arise； moreover； we believe we shall be able to maintain our deserved superiority by introducing still more advanced bookkeeping methods； which are even now under development in our Experimental Accounting Laboratory。
当然在准备这份报告时，董事会不是不知道同业也有可能仿效我们这类的做法，使得我们这样做的效益大打折扣，但是我们有信心美国钢铁身为提供钢铁用户这类新式服务的先驱领航者，一定能够维持住客户的忠诚度，不论是老客户或是新客户，当然若是有任何意外，美国钢铁仍将透过我们新设立的会计研究实验室，致力于研发出更新的会计做帐原则，以继续保持我们的优势地位。
APPENDIX B
附录B
Some Thoughts on Selling Your Business*
对于阁下有意出售公