The New York herald., 1920-01-30
BETHLEHEM EARNS
19.SP.C..ON COMMON
Net Income for Year Shows
5.45 Per Cent Profit on
Gross.
SMALL DEPRECIATION CHARGE
Company Had Orders on Hand at
End of Year Amounting
to 252,449,Ooo.

E4lU VI i CdL AlliOuillllIS
to S252,449,ooo.
| Although the gross business of the Beth
lehem Steel Corporation in 1918 showed a
decrease OF s166, ,5ss, 9o2 compared with that
oe the previous year. its net income was
s15. $50, $50, or 1913 per cent on the common
stock. compared with SIS, $50 399, or ZOOS per
cent in 1918. That was due largely to the
smaller amount charged off for deprecia-
ton last year than in 1918.
The net income for the year represents
a profit of 545 per cent on the volume OF
business done.
The company had orders on hand De-
cennber 81 last amounting to $252. 449, 900 in
value. New business booked during the
year amounted to 500, ,144 600.
The corporation expended $25, 600 on
extensions and additions to plants during
l1919
These are the salient points of pre-
lliminary report on the results OF the year s
business done by the Bethlehem steel
Corporation read by z. G. Grace, the pres
ident, at the regular quarterly meeting
of the Board of Directors yesterday. The
Board declared the regular dividends on
both classes of preferred stocks for the
entire year, payable in four instruments
and also declared the regular quarterly
dividend of IL per CENT on both classes
of common stock.
Table OF Earnings.
! The preferred dividends are payable as
follows:-
April /. 1920 to stockholders Of record March 49,
July l, 1920. to stockholders Of record June 1S
October /. 1920. to stockholders of record Sep
5sSaa oJS jsal to stockholders Of record De-
Ihs diydends on both classes Of common stock
odeo1PS are PayyaSsb ya1cb On is AGr9,6 800. l. i'-0
reGgra HaroId ol,' Stanley, vice president of the
Guaranty Trust Company, was eiecteu 10
the directorate. -,
Mr. Grace's comparative statemeht oi
earnings follows
Cross sales and NV ., .ue a1o sos go
I.ess ssF''Iia manufactur-
| ing cost and op-
ting eX-
ing administra-
| tive selling and
sedaeTSi ea expense e4e415s7 394 oo3 900 o4
Net rO manufactur- - -, -,s g
ing profit % aS's4 % n nl0 ~ - :.
pSF ss nSG%s asns: s3sss 9si 1875 a
" as!s s5 Gss SSsss a34s95s I4S 5 ss ss
Deduct deprecia- o,. =, -,o ,ec oe
NJ Income 10 sc SEC. AZ Is $50 800 q!
"All plants of the corporation, both steel
and shin. are operating at practically full
lcapacity only as effected by an occasional
shortage of coal" said Mr.. Grace The
shipbuilding plants have the capacity OF
every shipbuildng way definitely sched-
uled for 1920 and in some cases into the
first half of 1921 The orders on the books
in all commercial steel lines are at
maximum and in the belief OF the manage
ment are in sufficient quantities to insure
full capacity operation throughout the
year. New business is offering far in eX-
cess of our ability to produce.
Spent s2o,5OO,OOO.
''The corporation spent during the year
81, 500 900 for extensions and additions 10
plant. 1t will be the policy of the manage
ment to continue improving ana eAtehulhs
it's properties.
Good relations between the manage
ment and its employees have been main
taincd and forwarded through the opera
tion of the employees representation
plan in operation in the plants OF the
corporation. The plan provides recogni-
ton for the employees individually ana
collectively as to all matters pertaining
to the conditions under which their SER
vice is rendered"
Mr. Grace said the report recently in
circulation that the corporation had on its
books uncompleted orders for ships alone
amour ting to s2S2 100000 was erroneous.
in the published report that figure referred
to uncompleted orders instead of, as
should have been the case, TO the value
of shipbuilding work completed over a
period
In commenting on his statement Mr..
Grace estimated that the book value of
Bethlehem common stock Is $225 a share.
lie said the reason the Bethlehem Cor
poration charged off only $12,JG6.lo2 10
depreciation last year. compared with Sf7.-
40. 75s in 1918, was that the government
fixed a maximum depreciation charge be-
yond which the company could not go,
This, he ntimated, was done for the pur-
pose of establishing taxable profits
The profit of 5.45 per cent on gross bus-
ness represented by net income OF $lo-
256. .S50 Mr.. Grace said. was only fair one.
In this view Charles NJ. Schwab chairman
Of the board, who was present, conceded
orders on Hand.
Orders on hand of s252,4i9,0o0 compared
with 1926, ,eis. 900 at the end of 1918. How
ever. the latter included large war orders.
New business booked last year was wholly
commercial business. Although the steel
industry did not really get going until the
middle Of the year. all war investments
have been written off. said Mr.. Grace.
The capacity Of the Bethlehem steel Cor
DOratiOn was placed Dy MT. brdce a.
. go 900 tons of irigot steel a year.
The Bethlehem Steel Corporation has ad-
vanced prices about 81 a ton over the
schedule established at the price confer
ence March 81 last, or just sufficiently TO
meet the increased cost of production
said Mr.. Grace.
The Bethlehem Steel Corporation is ex,
porting about 10 per cent OF its steel
through the export corporation II or
ganized with other independent manu-
tacturers last year. South America, Bel
gium. England and to lesser degree Con-
tinental Europe are taking these exports
The corporation has such "A large domestic
demand that IL is not likely to increase
this percentage for export, which Is the
minimum allowed under it's agreement
Bethlehem Steel will start It's fleet OF
ore carriers between the United states and
Chilli where it owns largo fields OF iron
depcsits. this year. Two ships are nearly
completed out Of six ordered. Meanwhile
/ IL is importing ores from Cuba and
Europe. It's contract for Swedish ores
suspended during the war. Is In effect
again. Spain also is about TO ship ores
The domestic outlook is exceptionally
bright. said Mr. Grace. Demand for
structural steel is particularly heavy. The
company Is well prepared to supply this
demand. excepting for a shortage Of coal
due entirely to lack Of sufficient cars at