USX CORPORATION

American holding company that was incorporated in 1986 to oversee the operations formerly directed by the United States Steel Corporation. Headquartered in Pittsburgh, Pa., USX oversees four independent operating units: USS, Inc. (formerly United States Steel Corporation), headquartered in Pittsburgh; Marathon Oil Company, headquartered in Findlay, Ohio; Texas Oil & Gas Corp., headquartered in Dallas, Texas; and U.S. Diversified Group, headquartered in Pittsburgh. At the beginning of the 20th century, a number of businessmen were involved in the formation of United States Steel Corporation, including Andrew Carnegie, Elbert H. Gary, Charles M. Schwab, and J.P. Morgan. Carnegie had founded Carnegie Steel Company, centred in Pittsburgh, and Gary had founded Federal Steel Company, centred in Chicago. In 1900 Schwab became president of the Carnegie company; and, when Carnegie expressed a wish to retire, Schwab approached Gary with the idea of a giant consolidation. With the aid of J.P. Morgan, they bought Carnegie's interests for over $492,000,000 and put together U.S. Steel, composed of the Carnegie and Federal companies as the nuclei, along with National Steel, National Tube, American Steel and Wire, American Steel Hoop, American Sheet Steel, and American Tinplate. U.S. Steel was capitalized at $1,400,000,000 and became the first billion-dollar corporation in American history. Schwab was named president (but resigned in 1903 to join Bethlehem Steel), and Gary was made chairman of the board (a post that he held until his death in 1927). Very soon after, in 1901, two other companies, American Bridge and Lake Superior Consolidated Iron Mines, were brought in; and more companies were absorbed in the years following. The example of U.S. Steel prompted mergers elsewhere in the metal industry. During its formative period the company was dominated by Gary, who exercised influence throughout the American steel industry through his famous Gary dinners, to which he invited the heads of major steel producers; out of the meetings came agreements on cooperative pricing and marketing that stabilized a once wildly fluctuating market. Gary opposed unreasonable competitive practices, and he opposed labour organizers. A general steel strike in 1919 was answered by his refusal to negotiate and his use of strikebreaking tactics. In 1920 the U.S. Supreme Court held that U.S. Steel was not a monopoly in restraint of trade under the U.S. antitrust laws. A successor of Gary, Myron C. Taylor (18741959), board chairman from 1932 to 1938, took a different view toward unions and recognized the United Steelworkers of America in 1936. Another major figure in the company's history was Benjamin F. Fairless (18901962), president 193852 and board chairman 195255. In the late 20th century, though it remained the largest steel producer in the United States, only about one-third of U.S. Steel's business remained in steel. With the acquisition of Marathon Oil Company in 1982 and Texas Oil & Gas Corp. in 1986, U.S. Steel assumed a major role in the oil and gas industry. The company had also become heavily involved in the chemical industry, mining, construction, real estate, and transportation (such as railroads, shipping, and shipbuilding). Thus, in 1986, the holding company USX Corporation was established to oversee the diversified interests divided among four operating units: USS (for steel), Marathon Oil, Texas Oil & Gas, and U.S. Diversified Group (directing the chemical, engineering, real estate, and other businesses).