New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-21
Wall Street Disappointed
at 80 Per Cent, Amount
ing TO $4,000, 900.
STOCK DECLINES,
BUT RALLIES LATER
Schwab Boast That Corporation
Would Hold Premier
Rank Realized.

Wall Street has a habit OF expecting
more than it gets. While there was
rejoicing IN the offices OF the bethie-
hem Steel Corporation yesterday over
Tie declaration Of an initial dividend OF
30 per cent by thc directors on the
common shares whose pyrotcchnloS
have been the sensation of the war
babies" the stock declined following
the announcement OF the melon, whlen
amounts arrroNiwarely 90 Si.'Vo,oVV.
BEFORE the news or the dividend was
,ns6e public. shortly after tnc noon
hour. "B. So sold 81 81, hul 500"
dropped 20 465. loss o. 20 points from
Wednesdays last sale 50,
There we're some. however. who old
not share the view Of the trading Gle
ment that the size Of the dividend was
g disappointment. and buying appeared
which brought the closing price up 10
A-o a net loss O. points for the day,
in The face of heavy selling IN United
States Steel common, whose WcahucsS
was accompanied hy reports that a.
rectors would take ro action on the
dividend at their meeting next lues-
bethlehem Steel IS the first Of the
bic munition manufacturing concerns
whose stock IS listed on the Exchange
10 make good the prediction OF Dig le-
turns 10 stockholders. lat the dec
laration Will not seriously impair me
company's cash resources was gieahtu
from the statement made by fresldehV
Charles ". Schwa5 az the annua! meet
ing Of stockholders last spring ina, as
bursements ON the common would not
he inaueurated until substantial sums
had been expended for improvement
out of earnings.
The dividend is payable in four GUAR
terly instruments OF ~ per cent each
out of the earnings for 1915. The regH-
lar annual dividend Of , per cent on
the preferred stock was also declared,
pavable with the common, on April i,
July !, October ! and January !, 1871
The proud boast Of Nr. Schwab that
the Bethlehem Steel Corporation would
one day be the most prosperous or
ganization OF its kind has thus oeen
realized. Earnings for 1914 were equal
70 $3.50 per cent on the common stock'
while the surplus for 1919, due 10 me
realization Of profits from war bus
mess. has been estimated as high as
500 q share.
Mr.. Schwab yesterday refused 20 con-
firm this estimate, but said that the re-
suits of the years operations would ne
made known In the annua. report when
will be issued in March. Nor would
he comment on statements printed IN
Wall Street that the company would
show $500 share earned Tor the com
mon this year iu the event OF the tu-
ropean war continuing that long.
Not only will Bethlehem steel stock
holders benefit from the increased reve-
nues OF the company, but the employees
will participate as we'll. Mr. Schwao
announced yesterday that the directors
had approved an advance of 10 per cent
i'm the wages of unssillcd labor. which
will affect approximately 10000 men.
This follows Increases On other depart
meuts that went into effect snort
time ago. The new wage schedule be-
came effective last Monday.
OF the S4O,000000 which Mr. Schwao
year ago contemplated spending on
new construction more tnau Sl2uUV'-
GOO was expended last year. or nearly
three times as much as the amount re-
uuired 20 meet the so per cent dividend
Nlr. Schwab and the other Carnegie
BOYS" will hold their annual dinner al
Mr.. Schwab's Riverside Drive resi-
dence tonight. i'm former years these
functions have been held az the horne
of Mr. Carnegie on Fifth Avenue but
owing % his absence In the South TINS
vear the scene viii De changed. The
carnegie" dinners have always beer
understood 20 Doe purely social IN then
character.