New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-07
BETHLEHEM STEEL
DIVIDEND DISTANT
President Schwab Firm in
Policy of improvements
from Earnings.

Shareholders Of the Bethlehem steel
Corporation who expected that Prcsi-
dent Charles NJ. Schwab would tell
them at the annual meeting in Newark
yesterday what the prospects for divi-
dends on the common stock were went
away disappointed. Mr.. Schwab con-
fined his remarks chiefly to the large
expenditures ahead Of the company
some S20,OOO,OOO or s3O,OOO,0O0- which
will be used for the development Of the
Chilean ore properties and more COM
prehensiye construction programme az
the domestic plants.
Those close TO Mr.. Schwab have
quoted the steel magnate as saying
when the recent spectacular rise IN the
common stock was in its infancy that
he did not favor n dividend on this is
sue until more millions had been eX-
pended for improvements. In his ot1ces
RI III Broadway Yesterday following
the annual meeting Mr. Schwab relter-
ated his adherence TO this policy.
The matter Of dividends on the com
mon stock has not even been DIS
cussed." he added. at has been my
chief purpose since obtained control
Of the Bethlehem Steel Corporation
eight years ago TO make a success OF It.
There were years when no dividends
were paid on the preferred. and as a
holder Of a majority Of the shares |
was the chief sufferer.
while tho results Of the last year
have been gratifying to the stock
holders, feel that the company's sur
plus should be used for development
work. We contemplate spending be
tween S2O,O0O,000 and S30,000,000 with
in the next few years, and this will be
done "a far as possible out Of earn
ipgs. We have already expended about
S50,000o00 for this purpose"
Should earnings be inadequate 20
meet the expenditures needed for i'm
urovements, Mr.. Schwab was asked II
bond issue would be considered. He
said that financing Of this character
had not been discussed. and probably
would not be favored because the com
p8ny's present bonded Indebtedness Is
largely In excess Of the outstanding
capital stock.
Although he is an optimist on the
future Of American industries, Mr..
Schwab asserted that the steel business
as q whole was bad last year. The
excellent showing Of che Bethlehem
Steel Corporation, he said. was largely
due to the fact that il was engaged in
the manufacture Of specific lines which
have been greatly in demand by the
warning nations Of Europe.
Mr. Schwab predicted that after the
war Is ended the United States would
get much Of the steel business formerly
given 10 Germany by the Allies. In
.hc case Of Russia alone this has been
estimated at S50O,00O,000 annually. As
regards the present outlook in the DO
nestle trade he anticipated an in
creased volume of orders, but not much
gain IN prices.
MR. Schwab looked much improved IN
health as a result Of his recent vaca-
ton at White Sulphur Springs. lie eX-
meets TO return there in about two
weeks. He said he was not planning
another European trip in the near tut
urc. As a parting remark Mr.. Schwab
stated that he did not want 70 say any
thing that could be constructed as ap-
proving or showing any connection WIN
The stock market, but added signlf-
cantly:
The stockholders Of our company
have been rewarded for their patience
i'm now being able to realize substan-
tial profit on their securities
Following the statement made by Mr..
Schwab at the annual meeting ycster-
dav the common stock Of the Bethle-
hem steel Corporation, which had been
as high as 94i2, sold down from 92i2
20 S7s4, closing at S81s.