The sun., 1915-10-28
BETHLEHEM STEEL
WON'T REDUCE PAR
Schwab Refuses Requests to
Increase shares From 15O,-
600 to 100000.
STOCKHOLDERS OPPOSED

Charles ". schwab. head Of the Beth.
ehem steel Corporation, announced yes
tcrtlay that lie had decided to refuse the
suggestions made to him by certain
Stock Exchange houses and stockholders
of the company that the par value OF the
from 500 u share TO so a share and
mat the outstanding number OF shares
he increased from 10000 to 100000.
The campaign for the change was In
auauratcd last week by II. =. Gold
schmidt & Co This Arm sent out
printed circulars stating that the limited
number OF shares and the high earning
power OF the company. together with the
great demand for the stock. made the
market In bethlehem Steel common an
unstab Bile one, and In times OF stress II
might serve to unsettle the entire market.
At the offices OF the Bethlehem steel
Corporation II was stated yesterday that
about a hundred OF these circulars had
been received by the company. Very
few were from stockholders. the ma ajority
coming from stock Exchange and brok-
craze houses. Owing to the few circu-
Jars received Mr.. Scnwab personally re-
riic1 to each individual who wrote to
him.
His letter was as follows:
The printed letter oearinH your sig.
nature and similar letters from others
have been carefully considered by the
directors Of THE corporation and By Its
officers who are important holders OF the
common az well as the preferred stock.
While We have great respect for the
Judgment Of those from whom these
communications enianate. we have been
compelled {, consider the request which
they contain from the point OF view OF
IN" interests of the Bethlehem Steel Cor.
roration and the entire body OF stock
holders.
Viewing the situation from this
standpoint. 1t is our una nj n Gus convic-
tion that 1t would be a mistake to reduce
the par value of the shares from 500
to 80 at the present time.
sour business at present Is large and
profitable. but conditions are unusual
and any rcadjustment OF capitalization
that may he deemed necessary can well
await the return OF more normal con-
dtions
Furthermore. We are in position "a
assure YOU that the holders OF a substar-
tial majority OF the stock OF our com.
pany are opposed to the change"
When questioned yesterday regarding
the negotiations said to be proceeding
between the Bethlehem Steel Corporation
and the Pennsylvania Steel Company for
the purchase Of the latter by the former
Mr.. Schwab said. ~ prefer not to discuss
fhat matter" Asked II the Pennsylvania
steel Company was not losing PROPOSE
tion during bad times. he replied, 81
don't want to cast aspersions on any
company. but II would take considera ble
capital IN order to put the company on
thc basis which II would suit US to oper-
ate 1t and TO make It yield q good return
on the invest ment"
Mr.. Srhwab was then asked whether
the company would place the common
stock OH a dividend basis this year. THE
matter has not even been considered by
the directors hc replied.
NJ. Frlck when seen at the meeting
or the United States steel Corporation
On Tuesday and questioned as to the
possible sale Of the Pennsylvania Steel
Company TO the Bethlehem Steel Cor.
poratou said. 81 prefer not 10 discuss
that report"