New-York tribune., 1918-03-23
Beth. Steel Has
Huge Orders for
Ship Construction
Expects to Make Prompt
Deliveries-Net Earn
ings Smaller

Orders for naval and merchant ves-
sells to an aggregate value Of $273,ooO,-
600 were on the books af the Bethlehem
Steel Corporation at the close of 1917,
and deliveries Of thee vessels probably
will be completed on schedule time.
This was the statement made by Charles
NJ. Schwab, chairman of the board of
directors, in the annual report to share
holders issued yesterday.
Other government and private con-
tracts brought the total of untitled or
ders on December 81 up to $453.S0S,75
Commenting on this vast business, Mr..
Schwab said
Working at Capacity
"Thc contracts on hand on January L.,
1914, prior to the outbreak Of the Eu-
ropean war, aggregated only about .
per cent of this total, making it ap-
parent that the facilities Of the plants
of the corporation are being taxed to
the utmost of their capacities. Only such
extensions are being made to plants as
are absolutely necessary to meet the
demands of the government, and this
work is being forwarded with the ut
most vigor."
The final figures showing 1917 in
come differ little from those contained
in statement issued by Mr. Schwab
last January. Gross sales were given
then as 100000, while the pamphlet
report places them at s29S, ,929 $50, COM
pared with $216,2S4,555 in 1916. The
net earnings were s53,979, $50, compared
with 2,651, ,431 in the earlier state
mcnt and SCI, 1,717,3O9 in 1916.
The decline in net, amounting to ST.
737 ,949, was accounted for by the fact
that $13,4s9, ,293 was paid out in taxes
last year, against only $4,913,702 the
previous year. What proportion of last
years taxes were due to war excess
profits taxes was not disclosed in the
annual report.
Earns 1872 Per Cent
Net income last year after all
charges totalled S27.320,737, equivalent
70 1o.- per cent OH @oJ,tfc,OoO Soiii-
mon stock, after dcducting 7 per cent
on the S14908, 600 non-cumulative pre-
fcrred stock and one quarterly dividend
of 9 per cent on $29, ,724 900 cumulative
preferred stock. In 1876 the company
earned 1858 per cent on $!4,S62 ,00U
common stock. The dividend payments
last year, including a ! per cent Red
Cross dividend, absorbed SS,177,320 Of
the corporations earnings.
Total bonus payments TOR 1917 to the
officers and heads Of departments were
$3,913,S33, or 1896 per cent of the ag-
gregate net earnings. The average
number of employees in the United
States last year was 64,783, necessitat-
ing payroll expenditure of $83 ,97S,312,
contrasted with ,013 employees in
1915 and a payroll disbursement Of
S51, 400, ,773.
In their remarks to the stockholders
Mr.. Schwab and Mr.. Grace called at
tention to the change in the policies
and business methods of all indus
trial concerns that has taken place
since the entry Of the United States
into the way. These changes, they
pointed out, were reflected particularly
in plans for extensions and financing.
The company's balance sheet as Of
December 81, 1917, showed cash on
hand and in banks amounting to S13,-
348,O20, an increase of $5,767,76S over
the preceding year. Current assets
amounted to $158 ,919966 and current
liabilities were S8l ,024 ,463. leaving net
current assets of $72,S95, SOP. Surplus
and reserve funds were shown to be
eco 400 AM