Show rA r A r l f OPTIMISTIC ON FUTURE Fairless Tells Tens Details Of Bid on Geneva Special to Tim The Tele Telegram m V NE YORI YORK May 2 Benjamin 2 F. F Fairless president United States Steel Corp made the following following fol fol- lowing statement Wednesday In connection with the bi bid bid for the Geneva Utah steel plant The constant growth of population population population tion and Industrial activity In the far tar west indicates a 11 future for the Geneva Steel mill mm provided this plant can be acquired at a n fair value and reasonable freight rates secured and further provided that tha the mill mm Is properly reconverted and equipped with additional facUlties facilities ties tics so as to be capable of making st steel products of such character as are normally in demand on the Zhe Pacific coast This plant is a war time faculty facility fa fa- culty built and operated by us during the war for account of the government without fee or commission commission commission com com- mission for the primary purpose of supplying plates and structural steel to meet the needs of the governments government's huge war time shipbuilding shipbuilding shipbuilding ship ship- building pro program am on the Pacific coast In 1941 when the government government government govern govern- ment decided upon the construction construction construction tion of this large Integrated steel mill with an annual ingot capacity of tons and with finishing finishIng finishing finish- finish Ing facilities for tor the production of tons of plates and tons of structural steel per year little thought was Wn given to the possible peacetime uses of the plant Shipbuilding in the far west and elsewhere practically ceased last year with the end of hostilities and there presently Is no need for forthe forthe forthe the vast plate and structural steel capacity of this mill mUl If the Geneva plant Is to be continued in operation in the future future fu- fu ture it must be suitably equipped to produce other steel products which are consumed In peacetime in n the area which can be served economically by this mUlu millU millU mill mUl U S S. S Steel has offered to purchase purchase purchase pur pur- chase the Geneva plant and inventories inventories inventories tories for in c cash h. h A down payment of ot on n ac account account ac- ac count of the purchase price of the he plant without plant without Inventories and additional for tor the Inventory Inventory inventory tory will be paid upon the transfer of the property The balance of the purchase p price ico of ot the plant is payable two years after the date ot of f the acceptance of ot the bid this being the estimated time required for the of the plant If It the bid is accepted U. U S. S Steel obligates Itself to spend not less ess than additional to enable the Geneva plant to be reconverted and equipped for peacetime operations as deemed necessary by U. U S. S Steel The government is not asked to finance any my part of the cost of the additional additional additional addi addi- t facilities es i These e proposed additional fa facilities facilities facilities facilities' fa- fa at Geneva include equipment equipment equipment equip equip- ment for the annual production of ot tons of rolled coils which under our proposal are to be used In i the manufacture of cold re reduced reduced reduced re- re sheets and tin plate at a modern cold reduction mill mm to be erected by our out subsidiary Columbia Columbia Colum Colum- bia bla Steel Co at Pittsburg Cal Cat at an estimated cost of Work Vork on this new cold re reduction reduction re- re mill mm is now underway I The total estimated cost cast to U. U S. S Steel for so acquiring and converting convert convert- rt- rt Ing ng the Geneva plant and enabling its ts production of hot rolled coils to be utilized at such cold reduced sheets and tin plate mill is 91 91 all of which money wIllbe will willbe willbe be provided by U. U S S. S Steel Bid Ends June 15 1946 19 U S. S Steel has reserved the right to withdraw Its bid if it not accepted by June 15 1946 U. U S. S Steel proposes that the Geneva plant lant shall be acquired and operated operated operated op op- op- op by Its west coast subsidiary subsidiary iary ary Columbia Steel Co Before the war Columbia Steel Co conducted conducted conducted con con- ducted the only Integrated steel operation west of ot the Rocky moun moun- with a blast furnace byproducts byproducts byproducts by by- products coke cake ovens and iron ore coal and limestone properties in Utah and with steel steel making and finishing facilities facUlties near Los Angeles Angeles Angeles An An- geles and San Francisco Ca Cal Columbia Steel and its predecessor sor Bor have sold U U. S. S Steel products on the entire west coast for over 40 years spears Over a long period of at time U. U S. S Steel has had an extensive participation in west coast markets markets mar mar- ket for steel It desires to continue continue continue con con- to participate in these mar mar- U. U S S. Steel feels an obligation obligation obligation obliga obliga- tion to Its time long-time customers to provide them with better service service ice if it possible which it hopes to tobe tobe tobe be able to accomplish through the acquisition of ot the thc Geneva plant and the installation of ot these new facilities |