New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-03
DIVIDENDS ACCEPTABLE
STOCKHOLDERS RESIGNED
No Clash at annual Meeting of
Bethlehem Steel Corporation.

The annual meeting OF the Bethlehem Steel Cor
poration. with Charles NJ. Schwab. the president,
in the chair. held in the directors rooms OF
the Fidelity Trust Company in Newark yesterday
and, contrary 70 expectations which had been Gre
ated by Wall Street runors. there no clash be-
tween the minority and majority stockholders over
the question of dividends.
John R. Hardin, of Newark. represented the
Commonwealth Trust Company, OF New YORK.
while Samuel Untermyer looked after the interests
OF a group OF stockholders. In all there were about
5000 shares of the 100000 outstanding involved IN
the proposed protest against the dividend curtall-
ment. Both lawyers We're ready to proceed against
what was at first believed by the minority holders
20 be move OF Mr.. Schwab's and of some of his
close associates holding the majority OF the
stock to gain entire control of the corporation by
forcing the small holders to sell out After the
annual report had been submitted, however they
announced themselves as satisfied that what their
clients had been led to expect in the way OF di'i-
dends would not be justified, in view Of the con-
diuons as revealed in the statement.
According TO the report, the total income for the
year ended December 81 1906. Sl.364,115, a de-
crease of s2,25S.300 compared with the previous
year The net income $762749, a decrease Of
Sl,S9S 32l Against total surplus 70 December 81
OF So S6S charged extra losses OF $LliS461.
increase OF 1922. 1896 leaving ret total surplus
10 December 81 Of Sl.4S79O1. After the payment
Of dividends the preferred stock the surplus at
the close. OF the year $593.421. OF the eN-
traordinary losses estimated $5O0,913 was on un.
completed ship contracts taken since the l'Ili4d-
ton Of the corporation. s4S9092 was on govern
:nent cruisers contracted for by the United States
Shipbuilding Company and the remainder BY earth
Only preferred dividends were declared.
President Schwab informed the stockholders that
the report was poor one because OF cAtrtoIulIdIy
losses. but that an losses had been charged against
a fair start. II earnings mad justified dividends.
he added, dividends would have been paid The
poration during year aggregated $6.2l65'e,
with estimated value OF unified orders on hand
of
Pliny Fisk. William NJ. Barnum and Henry s:
the directors. following he stockholders meet
ing Charles N. Schwab reelected chairman o.
1ae board and pIesden' and the Glowing 4tneT
Johnston. Bethlehem: second vice-president. Henry
Barry H. Jones. Bethlehem; assistant secretary and
executive committee Charles NJ Schwab jchair
mani Allan A. Ryan, George r. Sheldon AN and
Johnston. +. A. Shick. OF Bethlehem, was elected
President schwab said after the meeting that the
5ethlehem steel Corporation would buld no more
the three batteships now under construction at
the Union iron Works !. San 6anSisc9 the cor
been in part due to the earthquake: which had
other damage 10 the plant. and in part TO the
changed conditions under which the work was now
cost OF iron and other materials as well as labor
was much lower than now
Another reason for the decision not 20 submit bids
volved in handling that class of work. due prnci-
Pally TO tie amount Of red tape insisted upon by
the government. Armor plate and ordnance would
continue 10 be manufactured at the Bethlehem
plant. however. although the corporation would
no longer undertake the construction OF battle
ships complete from keel 10 ordnance. The cor
poration would stil build merchant vessels at its
various shipyards.
the shipbuilding end OF the Bethlehem steel Cor
porations business. Mr.. Schwab added, had not
been profitable. Since the corporation had begun
operations total of s. 0,000 in losses shipbuild-
ing had been charged of. Work the plant
at Bethlehem. for the Manufacture of a diversity
of steel products. he continued was well advanced.
and II was expected that by fall twelve thousand
men would be employed at Bethlehem. The total