South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-24
BIG NJ ON CUT
BY BETHLEHEM CO.
Common Stock Dividend is In
creased to Ten Per-
cent Quarterly.

NEW YORK, Jan. 24.-One Of the
largest melons" ever distributed by
an industrial corporation was an
nounced Tuesday when the directors
OF the Bethlehem Steel corporation
increased the common stock divi-
dend from : - percent 20 10 per-
cent quarterly, recommended a 200
percent common stock dividend or
bonus. and also offered the common
stock holders the right 10 subscribe
20 SIS. 900. 600 new stock at par on
the basis Of share for share Of pres
ent holdings.
This action was made possible by
"a proposed increase Of the common
stock from S15.000.00O 10 $50. 000.-
900. The plan regarding the new
stock Is 20 be submitted 20 share
holders At a special meeting Feb. IA.
Inasmuch as Charles NJ Schwab.
chairman Of the corporation, and his
friends are believed 20 control the
present stock issue IL is virtually as
sured that the proposition as
whole viii be approved
Voting Power Withheld.
Voting power viii be withheld
from the new stock one reason for
this decision and perhaps the most
important. II was explained, is that
Mr.. Schwab promised the British
government. from which he has re-
ceIved orders running into hundreds
OF millions OF dollars, that he would
not relinquish control Of the corpor-
alton while the war lasts
Another reason, il was said, is
that the new stock, if granted vot-
ing power. would infringe upon or
impair the rights of the preferred
stockholders. there being only So
600. 600 OF that issue authorized.
The banking house of J. and w.
Seligman and CO. is forming "A syn
dictate 10 underwrite the purchase Of
the s15,0OO,OO0 of new common
stock. TO be known as class r, which
viii be offered to stockholders for
pro rata subscription at par.
The usual annual dividend of
seven percent. on the preferred
stock. PAYABLE i'm four quarterly in
stallments also was declared.
Earnings S61.717.S29.
Earnings of the Bethlehem Steel
corporation for the year 1916
amounted 10 S61.71L329. Deducting
interest charges of S3.772,575 and
charging off S14,3507Sj TO depre-
citation and depletion. the aggregate
net addition to the surplus is SiS,-
593.96S. making a total surplus on
Dec. 81. 1915, OF 69.370.19S
orders ON hand at the beginning
of the present year amounted to APP
proximately St95. 100000 exceeding
those OF year ago by about $lS.-
600. 600
It was announced that it was main
Is because Of the corporations great
increased volume of business that it
was deemed necessary 10 appropriate
increased amounts 20 construction
and working capital and engage in
"a general policy of financial eXpan-
sion.
Assets Increased.
Completion OF the proposed issue
OF $4,000. 900 new stock, it was ex-
planned. still increase assets by SIS
600 600 cash and will increase the
outstanding common stock issue by
four shares 20 one.
As a precaution and to provide
possible future contingencies. the
ard Of directors thought it advis-
able TO provide for the creation of
"a new and first refunding mortgage.
which will authorize, under suitable
restrictions. the issue Of bonds from
time 10 time for refuuding opera
tious. extensions and additions and
other capital purposes not provided
for from earnings OF the sale of
stock Authority for the creation Of
this mortgage may be asked at the
corporations annual meeting in
April