New-York tribune., 1922-05-21

the corporations capacity in other re.
5, ects, and the Schwab interests chose
the latter course.
one OF the chief advantages of the
combination of many companies into
the Steel Corporation two decades ACC
was reduction in overhead. Anothe,
ana equally great advantage was the
sreaelon OF facilities for allotting or
gers 70 plants nearest to the point Of
aeiaVery. The Bethlehem Steel Corpor.
a''oS also will benefit in this particula,
oy the combination, although not az
extensively as did United States Steel
its activities are by no means confines
to that line.
Up to the time of the solidation
.he hethiehem field of operations was
manly the states of Pennsylvania and
Maryland. In the future the corpora
tlon Will be able to obtain a firmer
1oothold in New England and in the
states easily accessible from the Lack.
awanna Buffalo plants.
In order to consummate the deal fo,
the purchase of Lackawanna, the
Bethlehem Steel Corporation will have
TO increase its authorized per cent
snare capitalization by $14,OO0, 900, or
by $l2,b00,000 if management should
elect to increase the par amount of
Class B stock and decrease the amount
OF per cent preferred offered in ex.
change for Lackawanna stock. In all
probability the stockholders will be
asked to increase the authorized per
cent stock by the round figure of Sis.
ooo,oo0, thereby doubling the amount
that can be issued. There will be
enough Glass B stock to carry out the
nf no
issuance of new shares to the amount
of $2l,065,100 or $22,60S,500, depend
ing on which scheme of exchange is
finally decided upon.
No Ne,o Financing
| According to the balance sheet as
of December 81, 1921, Bethlehem had
cash in excess of s13,0O0,O00, SO that
the question of finding the 100000
that might be necessary to carry out
the plan need scarcely be considered
AS President Grace stated during the
week, no financing will be required as
part Of the purchase transaction. The
tact that the management plans to
spend between $l5,000,O 900 and s25,.
100000 on improvements and extcn.
slons gives some clue to the breadth
of the company's plans for meeting
compeCltlon.
When the last step has been taken
toward consummation of the Beth
lehem-Lackawanna deal the enlarged
corporation will have a capital of
139,S7s,500, consisting of $30,O00,0OO
8 per cent preferred, $14,862, 900 com
mon, and either $2e,951 400 of z per
cent preferred and $66,o65, 100 of class
common or s27 .40s,00O of 7 per
Gems preferred and $67,6OS,500 of
class B common. The funded debt,
rot allowing for any loans that may
be put out Immediately after the ex-
change of stock to carry out the plan
of improvements and extensions, will
aggregate s165,s78,oOO, including the
obligations of subsidiaries of both com
panies.
The enlarged Bethlehem Steel Cor
poration will be less than 25 per cent
as large as the United States Steel
Corporation not only in point of steel
ingot production but also in capitali-
cation. Stocks and bonds of the for
mer will aggregate $3O5, 100000, as
compared with $1,417,O0O,OOO for the
Steel Corporation. A comparison of
the earnings power of the two cannot
be made on the basis of ingot pro-
Guction alone, for Bethlehem has built
up vast shipbuilding and ship repair
facilities which are q sustaining factor
in Gimes of dullness