Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-01-24
Huge M[l(N CUT
By BETHLEHEM STEEL
DIVIDEND OF 200 PER CENT
PASSED BY DIRECTORS OF
GREAT CORPORATION.
HOLDERS OF COMMON
STOCK GET BENEFIT
Company Decides to Issue $4,000 900
Additional Stock - Voting Power to
Be Withheld From New Stock
Earnings Of Cooperation For Year
Exceed $61, 100000.

New York, Jan. 24.-One Of the larg-
est melons" ever divided by an INDUS
trial corporation was announced today
when the directors of the Bethlehem
Steel corporation increased the COM
mon stock dividend from TN per cent
to 10 per cent quarterly; recommended
a 200 per cent common stock dividend
or bonus. and also offered the common
stockholders the right to subscribe to
SIS. OOO. 900 new stock at par ON the
basis of share for share OF present
holdings.
This action was made possible by
proposed increase of the common STOCK
from s15,0O0.000 to $60.OOO,00O. Inc
plan regarding the new stock is TO De
submitted to shareholders at special
meeting Feb. IA. Inasmuch as Charles
NJ. Schwab, chairman OF the corpora
ton, and his friends are believed 10
control the present stock issue, II Is
virtually assured that the proposition
as whole will be approved.
Curtail Voting Power.
Voting power will be withheld from
the new stock. One reason for TINS de-
cision and perhaps the most important,
is was explained. is that Mr.. Schwan
promised the British government, from
which he has received orders running
into hundreds of millions Of dollars,
that he would not reIinquish control OF
the CORPORATION while the war lasts.
Another reason. it was stated, Is tnat
the new stock if granted voting power
would infringe upon or impair the
rights of the preferred stockhoiders'
there being only s15.O00,O00 OF that
issue authorized.
The banking house Of J. & w. Selig-
man & Co. is forming syndicate 10
underwrite the purchase OF the $l5,-
OOO, 900 of new common stock. to De
known as Glass B, which Will be or
fered to stockholders for pro rata sub
scription at par.
The usual annual dividend of per
cent on the preferred stock. payable IN
four quarterly installments, also was
Earnings se1.717.s2s.
Earnings of the Bethlehem Steel cor
noration for the year 1915 amounted to
SOL 717329. Deducting charges OF 49,
772.575 and charging off $14.30o,7so 10
depreciation and depletion. the aggre-
gate net addition to the surplus Is $4S,-
s93s6s. making a total surplus on Dec.
81. 1916, Of $69,s70,19S.
Orders on hand at the beginning OF
the present year amounted to approx.
mately $4,000. 900, exceeding those OF
last year by about S1s,ooo.ooo.
It was announced that 1t was mainly
because of the corporations greatly in
creased volume Of business that 1t was
deemed necessary to appropriate in
creased amounts to construction and
working capital and engage IN a gen.
eral policy Of financial expansion.
Increase Assets.
COMPLETION of the proposed issue OF
s45 oOO. 900 new stock. it was explained,
will increase assets by $15.0Oo.0oo cash
and will increase the outstanding COM
mon stock issue by four shares to one
As a precaution and to provide
against future contingencies. the board
of directors thought it advisable TO
provide for the creation OF a new and
first refunding mortgage which will
authoriz e. under suitable restrictions
the issue of bonds from time to time
for refunding operations. extensions