The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-25
BETHLEHEM PAYS
FEWER DIVIDENDS
Glasses A and B Common Ex-
ira Is Dropped, but Regular
Quarterly Ordered.
ISSUES PUT ON 5P. G. BASE
Directors Statement States
Need for Conservation Of
Cash Is Reason.

Directors OF the Bethlehem Steel Cor
pcration decided yesterday TO discontinue
payment of the extra dividend on classes
a and u Of It's common stocks. The
regular quarterly dividend of IN per
cent. on each OF those issues was or
dsred. but the IN per cent. extra dis
bursement. which was paid In the Janu-
airy quarter. and the a per cent. extra,
declared in the April quarter. were elm
inGted Thus those stocks are put on a
straight per cent. annual basis for the
first time since early in 1917, when the
capital readjustment was effected.
The necessity OF conservation OF cash
was given as the reason for the direc-
tors decision In a statement given out
after the dividend meeting. ut was
deemed expedient." the statement read,
TO make no extra distribution to stock
holders at this time. feeling It wise to
conserve the corporations resources
against the somewhat uncertain future.
Although the steel business is showing
Il satisfactory growth in volume II was
recognized that with the continued high
'1st of production and present level of
prices resultant profits would not justify
.ay extra dividends.
The corporations shipbuilding plants
are still producing at full capacity,
principally on work taken during the
war period. The steel plants as a
whole are operating at about so per
cent capacity. in some important lines
at full capacity, but the small volume
OF orders from the railroads, normally
the largest single purchaser, makes for
an unbalanced order book.
''The corporation is continuing It's
policy Of undermining its plants and
extending into new fields. This year
1t has spent $4,000 900 and has author
lied, financed and In course of execu-
ton further plant extensions at cost
OF sac. 100000. When completed this
expenditure, in the main, will provide
additional structural capacity at the
bethlehem plant, additional merchant
plate and tin plate output and n new
sheet plant at the Maryland plant. ex-
tension of dry dock and repair facilities
at our various shipyards and the mod
ernizing and extension of the Ameri-
can Iron & Steel plant at Lebanon.
Material progress has been made in
converting the purely wartime plants
into various commercial pursuits closely
allied TO the different lines Of our pres
ent business"
Early in 1917 the directors placed the
stock on 10 per cent. annual basis
for both classes Of common. At the
time they refrained from calling the div
idend a regular dividend, merely meet
inB III every quarter 10 declare uiNl-
dend of 2n per cent" Early in this
year the directors departed from that
policy, and although they paid the usual
dividend OF al per cent. on both classes
OF stock, the distribution was divided
between tx per cent. regular and
N per cent. extra" which was taken
at the time as an indication that the
extra might be cut. and, just as antici-
pated, the April dividend was ~ per
cent. regular and three-Quarters Of /
per cent. extra. Yesterdays action was
In line with WHIT has been expected in
steel circles as v / as in Wall Street
as the last six o. seven months have
been very lean for the steel industry.
The first dividends on the old common
stock were paid in 1915. when total dis
bursements were 22ls per cent, In
1917, after thS capital readjustment,
dividends of 23ia per cent. on the old
stock and stock dividend OF 200 per
cent. were paid. This stock dividend
was paid on Glass b common. and in
the same year cash dividends OF 8 per
cent. were paid on the new common
stock. the initial payment Of "a per
cent. being made on July of that year.
All through 1913 10 per cent was paid
on both classes Of common. In January
II per cent. regular and X per cent.
extra and in April y per cent regular
and three-Quarters of l per cent extra
were paid.