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

declared upon the preferred stock, MI
Schwab told him to go ahead and sue
all he pleased.
you are a fool" said the protest
ing stakeholder. "The preferred stock
Is noncumulative and you are giving
up your own earnings for the benefit
of the common stock, and you have no
right to sacrifice either yourself or
your associate preferred stockholders"
But Mr.. Schwab replied Il have al
ways worked for the company and its
upbuilding, and whatever it costs me
personally, that is my policy and it
stands"
There are those who believe that aft
er this great war ordnance plans VIII
lie of little value and that all profits
from ordnance work should go to writ
ing off this part of the Bethlehem
steel plant. This ordnance plan has
been valued at about $20,000.ooo.
$75,OO0,O00 Capital
There is no question but that pres
ent war orders on hand viii yield that
s20, 600, 900 The total capacity OF the
company is about 75,000,000 gross per
annum. The rail, structural and do
nestle steel plants represent about
one-nalf its capacity, but are nearly
half idle. The ordnance plant can
turn out about 100000 gross bust
ness per annum.
Bethlehem has no interest in any
Canadian plant; Is not sending over
the border parts of submarines, as has
been demonstrated to the satisfaction
of Secretary Daniels; but is building
a half dozen submarines for the Brit
.sh government, to be delivered after
the close of the war. The original con-
tracts with the British government for
parts of submarines was Cancelled, as
was announced at the time and the
fabricated parts that could not be used
in other lines went into the scrap
heap.
There are those, however, who be-
lieve that the Bethlehem steel plant
will manufacture submarines Tor the
United States government, II not for
other countries, for many years TO
come.
Speculation From the Outside
That the speculation in Bethlehem stew
has been outside the corporation ana us
directors may be demonstrated from these
facts:
|. Nearly one-third the common share
capital was gathered up by large New
York and Boston stock commission house
In the COS and sold out in the SOS, ana
for the accounts of various customers.
2. One of the largest fortunes that was
made in Bethlehem Steel was that OF
New York stock market operator who
got his first information as to what Beth
lebem Steel was doing from the works
from one of the 36 government inspectors
who are there from Russia, France. etc,
overlooking the ordnance plant and It's
outturn. He gathered up nearly 10000
shares, beginning in the 40s, and took
fortune out of 1t before 1t crossed l0O.
g. politician whose name Is well
known over the country bought Bethle-
in, tba with several
thousand other shares of speculative
stocks on the basis of the large reserves
in New York banks which showed no
sign of diminishing. He ordered his last
500 shares sold at 107. A manipulated or
controlled market would have given him
this price. Imagine his establishment to
find 1t sold at ia.
What Happened to Carnegie Steel
When Carnegie Steel was valued by its
owners at s140,O00.000, nearly every one
Of the owners would have gladly parted
with a portion of his stock at that figure
When short time afterward Mr.. Carr
negio sold the entire works for about $780,
100000, nearly every one of the owners
except Mr.. Carnegie started in with United
States Steel common to buy back what he
had sold.
Sentiment is a great factor in specula-
ton
Details of earnings of Bethlehem Steel
from war orders are not dealt with in
this article. They are temporary and
ilepenu upon the continued ability of the
world to buy ordnance. Every man Is
entitled to his own guess as to the length
Of the war. Furthermore. the earnings
as they are now running, week by week
and months by month. may never appear
In official reports. They may be charged
off as the ordnance plant is worn out
and the profits used in developing the
ore supplies and the expen-
sion of its domestic steel plants.
The data from which one may figure the
ordnance earnings are really within this
article. Anyone may figure 1t out from