The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1917-01-24
BETHLEHEM CUTS
HUGE STOCK MELON
200 Per Cent Dividend De-
cIared-AnnuaI Rate
Increased. !

NEW YORK. Jan. 24-Ths Bethls-
hem Steel Corporation, whose story Of
the last two years will be remembered
as one OF the greatest romanoes OF
industry, yesterday cut one Of the
largest melons for its stockholders in
history. BY unanimous vote the d.
rectors declared 200 per cent stock
dividend, offered the shareholders the
right to subscribe to $15.OOO,O00 more
of new common stock at par and in
creased the annual dividend rate. The
distribution was made from record
earnings almost beyond the widest
predictions OF the company's officers
themselves.
All in all. the stock dividend, the
right to subscribe to the new stock
and the increased dividend rate
amount to approximately q disburse-
ment of s72,5o in cash; 1t brings the
capital stock outstanding to about
$50. OOO. 900, compared with s15.O0O.OOO
heretofore.
The increase OF the capital stock
through the 200 per cent dividend
and the sale of $15,0O0,OO additional
stock has not yet been approved by
the stockholders. but q special meet
ing has been called for February IA,
at which their approval OF the new
financing plan will be asked.
10 Per Cent Dividend.
For the present the company de-
cIsred a $40 quarterly dividend on
the old common stock. which Is an in
crease Of $3.50 over the rate paid last
year, and places the old stock for a
short period on a $40 annual basis.
After the new increase in capital has
been approved a rate Of $40 a year
will be fixed by the directors on the
total stock, which is equivalent to
40 per cent annually to present stock
holders.
By the action yesterday the present
holder of one share Of common stock
receives two additional shares and
the right to subscribe at par to the
new $4,000, 900 issue. These rights
are worth approximately $3.50
share, Ii was figured on last nights
closing price The new stock Of the
company closed on the curb last night
at 131 bid. The new $4,000, 900 issue
of stock will be known as class -B'
common stock, and with that given to
stockholders by the extra dividend
will have no voting power.
One of the most amazing features
of the meeting yesterday was the
announcement of earnings of $43,593,-
96S net, which compares with 49,
S31 ,4OS during the year ended De
cember 81, 1918. Those Earnings are
equivalent to approximately $50 per
cent on the present common stock
and compare with about
112 per cent in the corresponding
period in 1915.
Orders Total s103.5o0.000.
The total amount OF orders nlled
in 1916 was not given, but announce
ment was made that at the end OF
the year there were orders on the
books amounting to $193.5OO,O0O.
Regarding rumors that the COM
pany was about to create q new first
and refunding mortgage OF about
800 600, 900 Mr.. Schwab, chairman Of
the board of directors, said such ae-
ton might be asked of the stockhold-
ers at the annual meeting in April, :
but that nothing definite had be7lS
decided.
Prior to giving out a statement re-
garding the company's new financing
Mr.. Schwab said control Of the Beth
lehem Steel Corporation would never
leave his hands or those OF his as
sociates. He then qualified this
statement by saying at least during
their lifetime they would maintain a
interest in the company.