sold during the year at an excellent profit. It is estimated that our
income will be increased by means of this method to the extent of at
least $150,000,000 per annum which, by a coincidence, will about
equal the amount of the write-down to be made each year against
Contingency Reserve.
这种新做法的好处相当的大，不但可以消除存货耗损的可能性，同时也可大大地
增进公司每年的获利能力，每年初存货因为帐列价值只有1美元，所以将因出
售而获得大笔的利益，经估计透过这种新会计方法的运用将可使我们每年至少增
加1.5亿美元的收益，而碰巧的是这个数字与我们每年冲销的或许准备金额相
当。
A minority report of the Special Committee recommends that
Accounts Receivable and Cash also be written down to $1, in the
interest of consistency and to gain additional advantages similar to
those just discussed. This proposal has been rejected for the time
being because our auditors still require that any recoveries of
receivables and cash so charged off be credited to surplus instead of
to the year's income. It is expected, however, that this auditing rule --
which is rather reminiscent of the horse-and-buggy days -- will soon
be changed in line with modern tendencies. Should this occur, the
minority report will be given further and favorable consideration.
特别委员会的一项报告建议为了维持一致性，应收帐款与约当现金最好也能够将
帐面数字调整为1美元，同时也一样可以有先前所提的好处，但这样子的提案
现在被驳回，因为我们的签证会计师认为，任何应收帐款或约当现金若冲回，最
好还是先贷记原有科目，而不是直接作为损益表上的收入，但是我们也预期这种
老掉牙的会计原则应该很快会更新，好与现代趋势做接轨，而等新原则一通过之
后，我们一定会马上将这份报告的建议列为优先执行的方案。
5. Replacement of Preferred Stock by Non-Interest-Bearing Bonds
Redeemable at 50% Discount.
5.将现有特别股改成不必马上支付利息50%折价发行的公司债。
During the recent depression many companies have been able to
offset their operating losses by including in income profits arising
from repurchases of their own bonds at a substantial discount from
par. Unfortunately the credit of U. S. Steel Corporation has always
stood so high that this lucrative source of revenue has not hitherto
been available to it. The Modernization Scheme will remedy this
condition.
过去许多公司在面临景气不佳的时候，大都利用买回自己原先发行大幅折价的债
券来弥补其营业上的损失，不幸的是由于美国钢铁公司的债信一向都还算不错，
所以没有类似这样的油水可以趁机捞一笔，但现代更新计画解决了这样的难题。
It is proposed that each share of preferred stock be exchanged for
$300 face value of non-interest-bearing sinking-fund notes,
redeemable by lot at 50% of face value in 10 equal annual installments.
This will require the issuance of $1,080,000,000 of new notes, of
which $108,000,000 will be retired each year at a cost to the
Corporation of only $54,000,000, thus creating an annual profit of the
same amount.
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 Committee has recommended 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 combined effect of the new proposals upon
the Corporation's earning power, we submit herewith a condensed
Income 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-Company) $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 Common . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (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
Fixed Assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($1,000,000,000)
Cash Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,000,000
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,000,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Miscellaneous Assets . . . . . . . . . . . . . . . . . . . . . . . . . 27,000,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($774,999,999)
LIABILITIES
Common Stock Par 1￠ (Par Value $87,032.52) Stated Value* ($3,500,000,000)
Subsidiaries' Bonds and Stocks . . . . . . . . . . . . . . . . . . 113,000,000
New Sinking Fund Notes . . . . . . . . . . . . . . . . . . . . . . 1,080,000,000
Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,000,000
Contingency Reserve . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000,000
Other Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,000,000
Initial Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389,000,001
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($774,999,999)
*Given a Stated Value differing from Par Value, in accordance with the laws of the
State of Virginia, where the company 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 combined
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
competitive 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
competitors 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 competitors 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司的一些想法
*This is an edited version of a letter I sent some years ago to a man who had
indicated that he might want to sell his family business. I present it here because it is
a message I would like to convey to other prospective sellers. -- W.E.B.
这是几年前我写给一位有意出售其家族事业给我们的人士，在经过修正后，我特地把这封信摆在
这里，因为这正是我想传达给其它有意出售事业者的讯息-华伦巴菲特
Dear _____________:
Here are a few thoughts pursuant to our conversation of the other
day.
您好
以下是在前几天我们的谈话后，我个人的一些想法。
Most business owners spend the better part of their lifetimes
building their businesses. By experience built upon endless repetition,
they sharpen their skills in merchandising, purchasing, personnel
selection, etc. It's a learning process, and mistakes made in one year
often contribute to competence and success in succeeding years.
大部分的企业老板无不终其一生努力地建立自己的企业王国，经过不断地努力焠
炼，他们在行销、采购与人事管理上的经验都能持续地精进，这是一个学习的过
程，先前一时的挫败通常会成就后来的成功。
In contrast, owner-managers sell their business only once --
frequently in an emotionally-charged atmosphere with a multitude of
pressures coming from different directions. Often, much of the
pressure comes from brokers whose compensation is contingent upon
consummation of a sale, regardless of its consequences for both buyer
and seller. The fact that the decision is so important, both financially
and personally, to the owner can make the process more, rather than
less, prone to error. And, mistakes made in the once-in-a-lifetime
sale of a business are not reversible.
相对地，自己当老板的经理人在面对来自各方的压力，偶尔会在一时冲动的情况
下，考虑出售自己拥有的事业，通常是因为中间人为了赚取成交的佣金不顾买卖
双方的利益而怂恿老板赶快做决定，事实上做这样的决策牵涉重大，不管是在财
务或是个人方面皆是如此，仓促地决定可能使得老板做出错误而不是正确的决
策，而且一旦发生可就是一辈子无法挽回的错误。
Price is very important, but often is not the most critical aspect of
the sale. You and your family have an extraordinary business -- one of
a kind in your field -- and any buyer is going to recognize that. It's
also a business that is going to get more valuable as the years go by.
So if you decide not to sell now, you are very likely to realize more
money later on. With that knowledge you can deal from strength and
take the time required to select the buyer you want.
价格当然很重要，但是通常它并不是整个交易最关键的因素，你跟你的家族拥有
业界最棒的企业，所有的潜在买家当然都知道这一点，而随着时间的演进，你的
事业也会变得更有价值，所以若你现在决定不卖了，这代表以后你可能可以赚更
多的钱，而有了这样的认知，你大可以从容以对，慢慢地寻找你希望的买主。
If you should decide to sell, I think Berkshire Hathaway offers
some advantages that most other buyers do not. Practically all of these
buyers will fall into one of two categories:
但是要是你真的决定要卖，我相信Berkshire绝对可以提供比别人更好的条件，
基本上可能的买主可以分为两大类︰
(1) A company located elsewhere but operating in your business or
in a business somewhat akin to yours. Such a buyer -- no matter what
promises are made -- will usually have managers who feel they know
how to run your business operations and, sooner or later, will want to
apply some hands-on "help." If the acquiring company is much larger,
it often will have squads of managers, recruited over the years in part
