The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-01-24
STOCK EXCHANGE AGREES
TO CALL ON ALL BROKERS
TOLAYBARE THEIR BOOKS
BIG MELON CUT
BY BETHLEHEM
200 Per Cent. Stock Dividend
Declared and Annual
Rate Is Raised.

The Bethlehem Steel Corporation,
whose story OF the last two years will be |
remembered as one of the greatest ro- /
mances of industry. yesterday cut one
of the largest melons for its stockholders |
in history. BY unanimous vote the d.
rectors declared a zoo per cent. stock |
dividend. offered the shareholders the
right to subscribe to sl5,000,000 more OF
new common stock at par and Increased
the annual dividend rate. The distribu-
ton was made from record earnings al
most 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 ap-
proximately a disbursement OF $I2.50 in
cash: 1t brings the capital stock out
standing to about s60,0po,000, compared
with $4,000, 900 heretofore. and places
the company's capital stock on n basis
where it is no longer "rich mans
stock" but within the reach OF the gem
eral public.
The increase of the capital stock
through the 200 per cent. dividend and
the sale of s15.0O0.000 additional stock
has not yet been approved by the stock
| holders, but a special meeting has been
called for February u. at which their
| approval OF the new financing plan will
bc asked.
| 10 Per Cent. Dividend.
For the present the company de-
clared a $40 quarterly dividend on the
old common stock. which is an increase
| Of $3.50 over the rate paid last year,
| and places the old stock for short
period on a $40 annual basis. After the
new increase in capital has been ap-
proved a rate of $40 year will be
fixed by the directors on the total stock.
which is equivalent to 40 per cent. an
nually to present stockholders.
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, which will be UNDER
written by J. & w. Selgman & Co.
These rights are worth approximately
s32.50 a share. it was figured on last
nights closing price. The new stock
of the company closed on the curb last
night at l31 bid The new I5,000.000
issue of stock will he 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 announce
ment of earnings OF s43,593.96S net.
which compares with s2i,s31.4os during
the year ended December 81, 1915. These
earnings are equivalent to approximately
$50 per cent. on the present common
stock outstanding. and compare with
about 1l2 per cent. in the corresponding
period in 1915. The total surplus as OF
December 81 last was $69.37Ol9S. which
also breaks all records for the company.
Orders Total sIO3.5OO.OOO.
The total amount of orders filled in
1916 was not given. but announcement
was made that at the end of the year
there were orders on the books amount
, , ing to $193.500. 900. which exceed those
, on the corporations books at the same
, , time last year by about sls.000,00O. and
compare with about s46,000.000 at the
close of 1914. The regular annual divi'
dend OF per cent was declared on the
company's preferred stock.
Regarding rumors that the company
was about to create a new first and re-
funding mortgage of about SlO0.00O.OOC
Mr.. Schwab. chairman of the board OF
directors, said such action might bt
!. asked of the stockholders at the annual
meeting in April. but that nothing def
mite had been decided. Such mort
gage, it is said. would be used largely
1 for refunding purposes. although II is
!. possible that a small margin of the pro
|, ! ceeds Of the issue would be used for new
4 construction. 1t Is for that purpose ant
to provide additional working capita
: that the new si5,000,000 OF common
Y stock is being offered to stockholders.
I Prior to giving out statement re
q gardng the company's new financing Mr.
, Schwab said control OF the Bethlehem
. Steel Corporation would never leave hi
: hands or those of his associates. lie
then qualified this statement by sayini
y at least during their lifetime they woul'
= maintain a controlling interest In tn
company He explained that when H.
succeeded In obtaining from tho British
: Government the first of the big order
= for war supplies the British Govern
ment had exacted from him promia
that during the period of the war con
, troll of the company should not pas
!. into other hands.
Mr.. schwab's Statement.
The statement given out by MI
Schwab following the meeting follows
r Pursuant to the practice which ha
~ been followed for four years, the boar
of directors Of the Bethlehem Steel Cor
he poration. adopted resolutions declarin
,r the dividend policy for the coming yea
n based upon the comptrollers report G
lie the years earnings. They also adopte
h a plan for an increase In the commo
to stock, which will be submitted to III
as stockholders at a special meeting to b
~ held for the purpose on February /
,it 1917.
We "As appears from the comptroller's r,
port of earnings the earnings of the col
poration for the last calendar year al
$6i.7i7.329. After deducting the inte
est charges OF s3.772.575. and chargin
off $l4,350.7s5 to depreciation and depl,
tion. the aggregate net addition to II
10 surplus is s43,593.96s. making the tot!
surplus as OF December 81. 1916, S6s
370.1ss. The orders on hand at the b.
Mt ginning Of the present year aggrega
es approximately $193,500.000. exceedr
ke those Of a year ago by about SIS, 1000, 90
o. "Of course. In handling its greatly 4
creased volume of business the corpor
o. tion has appropriated increased amour
Of to construction and TO working capti
an and 1t proposes to continue the policy
y" judicious additions to It's investment
by plant and working capital In order
ne take advantage of the profitable oppo
"a tunities for additional business Will