The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-04-18

| that Bethlehem outside its ordnance plant
| is still in the upbuilding or constructive
stage. He has been most emphatic that
nobody should be invited into a partner
ship with him save upon a thorough UNI
! Outstanding of the fundamental principles
of that partnership-all net earnings and
! all credit to go into the plant until a
domestic steel business capable of sus-
/ tanning an income and investment posi-
| ton is thoroughly established.
| Bethlehem Steel earned S2S. so a share in
| 1918 and sold at $2S. 80 per share. In 1911
| it earned $50 per share and sold at $40
| per share. and considerable part OF
the earnings, in both years. be it remem-
bered, were from ordnance orders-guns
armor plates. etc
| Wall street and the investment COM
munity was slow to realize what the
outbreak of war in Europe meant for an
ordnance plant, surpassed only by Krupps
| in Germany, and Creusot in France, yet,
in some respects, the superior of both
| these plants.
War Adds $15,000,000 of Value
Mr.. Schwab's position became imme-
dately worth the entire common share
| words, the war added instantly at least
| SIS, 00o 900 to the value of Bethlehem Steel.
That appreciation, eight months after
ward, is now somewhat reflected in the
stock market.
| All talk of outside buying of Bethlehem
Steel for control, or of stock market oper-
atoms by the directors or Mr.. Schwab:
or of corners in the stock; or of 'tie-up''
shares, may be dismissed as unnecessary
nonsense.
Charles NJ Schwab has never had a
business transaction with Andrew Car
negie since he departed from the Car
negie company, and there Is good reason
to believe that Mr.. Carnegie has never
bought a share of stock or been in any
way interested in Bethlehem Steel or any
other stock since he retired from bust
ness.
These statements can be made in the
broadest possible manner and should set
at rest the stories that have been put
afloat concerning financial relations, or
Bethlehem Steel relations, between Mr..
Schwab and Mr.. Carnegie. Mr.. Carnegie
has said that Mr.. Schwab ought to own
all of Bethlehem, but he did not say it
to Mr.. Schwab.
n An Interesting Incident
|" When Mr.. Carnegie and Mr.. Schwab
worked together in the upbuilding of the
Carnegie Steel works, their understand
ing and mutual confidence was such that
very many months would intervene with
out any conferences between them. This
may be illustrated by a single incident
When Mr.. Carnegie returned from one of
his European trips Mr.. Schwab showed
him the plans for the Edgar Thomson
Steel works. Mr.. Carnegie simply said
"Why, Charley, where would you sell
the output of such an enormous steel
plant?"
Look at the record of how few years
1t takes to double the annual steel con-
sumption of the United States respond
ed Mr.. Schwab. But the plants went back
into Mr.. Schwab's desk
Within two years Schwab received
cable from Scotland which said in sub
stance: Il have raised the money; build
the Edgar Thompson" And rush orders
went forth day and night upon that giant
plant-a plant that is now a baby of
the United States Steel corporation and
only one-tenth the size of the Steel cor
porations latest addition, the plant at
Gary Ind.
The public has had the same doubt re-
garding the future of steel in this coun-
try for some years, that Mr.. Carnegie
had before he built the Edgar Thomson
works Investors could see Bethlehem
Steel common selling day after day for
the amount Of Its annual net earnings
without becoming excited over the sit
uation.
Building for the Future
They knew that Mr.. Schwab was build
ing for the future they knew his fnan-
cial difficulties. the handicap of his To-
cation and ore supplies; and even when
the Wall Street Journal and the Boston
News bureau published over and over
again the volume of Mr.. Schwab's war or
ders, Wall street and the American in
vestors listened only to Mr.. Schwab's
declara ton that dividends were not I'M
der discussion.
When the stock was absorbed and
taken out of the street and the tape in
dictated it's scarcity, then the public be-
u - - -