New Britain herald., 1917-01-24
BETHLEHEM GIVES
 BONUS OF 200 P. (.
Quarterly Dividend Is Also h.
 creased to Ten Per Cent.

New York, Jan. 24.-One of the largest "melons" ever divided by an industrial corporation was announced yesterday when the directors of the Bethlehem Steel Corporation in creased the common stock dividend from 2 1-2 per cent. to 10 per cent. quarterly, recomm ended a 200 per cent. bonus and also offered the com ] mon stockholders the right to sup- scribe to $15,000,0O new stock at par
 on the basis of share for share of
 present holdings.
 This action was made possible by l a propoed increase of the common stock from 15,0OO,000 to $60, ,OO0. .o0O The plan regarding the new stock is to be submitted to shareholders at a. special meeting February 14. Inas- ! much as Charles F. Schwab, chairman
 of the corporation, and his friends ara believed to control the present stock issue, it is virtually assured that tha proposition as whole will be an proved.
 Voting power will be withheld from the new stock. One reason for this decision, and perhaps the most impor- tant, 1t was explained, is that Mr. Schwab promised the British govern ment, from which he has received 1 orders running into hundreds of mill lions of dollars, that he would not re- linQuish control of the corporation while the war lasts
 Another reason, it was said, is that the new stock, if granted voting power would infringe upon or impair the
 rights of the preferred stockholders there being only $15,00O,OOO of that issue authorized.
 The banking house of J. & w. Se- ligman and company is forming a syndicate to underwrite the purchase
 of the $15,000,O00 of new common
 stock to be known as Class B, which will be offered to stock holders for pro
 rata subscription at par.
 The unusual annual dividend of 7
 per cent on the preferred stock, pay able in four quarterly instalments, also was declared.
 Earnings S61,717,32e. Earnings of the Bethlehem Steel Corporation for the year 1916
 amounted to $61,717,329. Deductine interest charges of $3,772,575 and charging off s14,35O.7s5 to depreea- ton and depletion, the aggregate net addition to the surplus is $43, ,96S nldKl1lS q lOldl OI hSNCIADOA 31, 1916, of s69,370.19S.
 Orders on hand at the beginning o1 the present year aggregated approNi-
 matcly $193.500 900, exceeding those
 of d year ago by about 1S,O00,OOO.
 It was announced that it was main
 ly because of the corporations great est incrca sed volume of business that it was deemed necessary to appro- prate increased amounts to con- struction and working capital, and engage in a general policy of financial expansion.
 Completion of the proposed issue of s45.00O.O0O new stock. it was ex- plained, will increase assets by $15,- 900, 900 cash and will increase the out standing common stock issue by four l shares tor one.
 l As a precaution and to provide l against possible future contingencies 1 the board of directors thought it ad- | visa blc to provide for the creation of
 a new and first refunding mortgage 1 which will authorize, under suitable restrictions the issue of bonds from 1 time to time for refunding operations 1 extensions and additions and other 1 ca pital purposes not provided for from 1 earnings or the sale of stick. Au- l tn oritv for the creation of this mort gagc may he asked at the corpora tion's annual meeting in April.