New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-19
Bethlehem
Ends Dispute
With Russia
Borrows S5O,OOO,0OO to
Fulfil Contract for
Shells
SCHWAB EXPLAINS
COMPANY'S DEAL
British ShOrt-Term Notes
and Treasury Bonds
Are Pledged

X5D0G0,p Zoo on It's notes, ulscLoslhB NJ
the same time both the fact and the
ssttlement of a long dispute between
itself and its bankers on one side
AGAINST the Russian government and
The British Treasury on the other.
The Company's Announcement
The company's statement follows:
THE Bethlehem Steel Company has
finally concluded thoroughly salts
factory adjustment of matters which
sor some time have been the subject
Of controversy with the British gov
eminent. in relation to an important
contract for the supply Of Russian am
munition, payment for which was to
be made by the British government un-
der the terms of the contract.
"The matters at issue did not in
volye any question as to the quality
Of the work, but had to do solely with
the time of delivery, and were COM
phcated by changes in specifications
while the work was in progress. Times
Of delivery and terms of payment have
been agreed upon that are mutually
ss sfactory.
IN connection with and as a result
Of this settlement the Bethlehem
steel Company has sold s5O,OOO,OOO of
its own two-year notes, secured, In
part, by available treasury assets, and
in part by British short-term notes.
Three-fourths of this loan will be self
liquidating, as a result Of the payment
Of the British Treasury notes which
nature prior TO the maturity Of the
,ompany's notes.
-The notes have been purchased by
group headed by the Guaranty Trust
Company and the Bankers Trust Com
gany.'
Schwabs Personal Statement
To this was added the following per-
s0nal statement from Charles NJ.
Sehwab head Of the Bethlehem Steel
Company:
Charles n. Schwab. on being asked
fCr further information regarding the
Bethlehem Steel Company's announce
nent regarding the settlement of the
matters in dispute in connection with
It's contract with the British govern
nent for Russian shells, said that this
settlement disposed Of the only mat
ter in connection with the business Of
tie Bethlehem Steel Company which
was giving him any serious concern. He
said that in the negotiations resulting
10 the settlement the representatives
o. the British and Russian govern
ments had acted in the broad and lib
uai spirit which the Importance Of TIE
contract and the large amount involved
demanded, and that. as d consequence,
ne adjustment reached was one which
July protected both parties.
Nov the Russian government could
cant on regularly receiving its SHELLS
u accordance with the new schedule Of
deliveries, while the Bethlehem COM
isny would be protected as 70 its profit
,hd iis large investment in the con-
Iact By satisfactory settlement Of
ne specification and a new schedule
o. deliveries and payments.
Ar. Schwab explained that the set
utmen! would have no effect on last
years profits. inasmuch as none Of
nc profits OF this contract had been
included In last years earnings.
As 10 the $50 100000 Of two-year
Aoles which the Bethlehem company
3 selling 10 the Guaranty Trust Com
i1uy and tho Bankers Trust Company
connec. on with this settlement.
Af Sc1Wab said that these notes did
lgt constitute any part Of the Beth
eaemE scheme Of permanent hnanc-
NG They are issued only as an in
llent 20 tho settlement Of the Rus
.ian shell contract, and at least three
,o1rths or t1r notes viii automatical-
De- iiqI.dated by the payment Of
.ae sfort-tcrm British notes which
constitute part Of the security
Ar schHab added that the Beth
f'em company had no hesitation in
aaAine this large investment in Brit
th t1Ori-tcrm notes. because he re-
sfaeo them as good as gold. The
N'.hiehcm c0HpaHy's only problem
ss 10 convert these notes into cash
'Pf USE boo it, business and that re-
-N va. accomplished b. the note
,ahfaeton with the two trust com
Delay Due 70 Changes
t IS JHderrood that the contract
4' placed ty Eus ia eighteen months
e.N lhc British government Was 10
~ me 0I. Delay was caused ~
1nIfs H tho spcciGcations a. the
.oik proHc cd This has been q
.mon experience of an munitions
f'fE With Russian contracts. IN TINS
,f' bulah government apparent
itilaed ~ pay Tor shells which the
-ih'ah gogefrments experts would
~ accept. A. last the time limit ex-
lsa and tHe trarractiOu had 10 be
.ati on new basis.
eont.aeubio monetary loss must
efi been rutaiicd. The announcement
h. Silent as 10 who shall bear that
p,.t.2,9si1, however. b. waB left for nc
lrhfm Company on its own credi'
l@itf iae money urccssary 10 per
Mf work DU the new baBU. = hih
-pst b. selling SJ0DOO.0O0 Of -
y Che Guaranty Trust Company
49, Nih BE- secured partly by the
I,.1lthfin Company 0wn treasury
-" and partly b. British shert-
hctf.' N is probable that these
DrAff GogcfHmc1t notes previous
s'f'ftd ~ the Bethlehem Company
tl ~ ~ fash for munitions supplied
Htsi Britain.
ethWab refers 20 the company
..s' inffftmcnC in British notes, and
80 Ven good ~ gold" The only
f"' be says. was 70 convert them