Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-26
DECISION ON BONUS
QUESTION IS NEAR
Bethlehem System Of Pay
ments to Be Thrashed
Out April IA. n
BY JOHN F. SINCLAIR.
eneciel Dispatch to The star.

ID bOAA1N II 0AANOAAAAASe
Special Dispatch to The Star.
NEW YORK, March 26:-"I read
what Mr.. Schwab said about the Beth
lehem Steel bonus system" writes Il. D.
''but I'm not satisfied to hear only one
side of this controversy. am a stock
holder in this company. have waited
seven years to get dividend and in the
meantime the off1cials have been drawing
a sum of money which, had 1t been LETT
with the company, would have improved
when they were forced to go into the
open market to borrow money or asH
their stockholders for additional sums.
Now, r. S. wants to know the reason
for this sort of financing.
The Protective Committee Tor the
stockholders of the Bethlehem Steel
CORPORATION, consisting of Henry B. II.
Ripley, Samuel D. Hopkins and Edwin
D. Levinson, in their letter Of March
20 to the stockholders say that during
the time the bonus system has been in
force up to the close Of 1928, the
amount of bonuses paid amounted 70
$S1 $4,000 as against $4o,Ss6,ooO PAID
to common stockholders.
No voluntary Disclosure"
The committee brings out the fact,
too, that during the year 1880, the COM
pany failed to earn its dividends. New
ertheless, it paid a bonus Of $l,015,591
to President Grace.
One charge made by this committee Is
that there never has been voluntary
disclosure" of the bonus system.
Recently, asked Mr.. Schwab about
this, and he replied substantially as fol-
lows:
''There are two reasons why more
publicity was not given to the Bethle-
hem bonus: One was that, inherently,
felt I had a proprietary right to go
ahead and do what felt was for the
best interests of the company. had
built up the Bethlehem Steel Co. from
the beginning to its present size.
owned every share OF stock OF the COM
pany when 1t was formed and make
money out of the dividends Of the COM
mon stock. never had q 10-cent piece
as bonus since have been associated
with the company.
"The second reason was this: Had I
given out annually the amounts paid to
every officer for his work during the
year it might have caused jealousy and
rivalry within the executive ofnceS.
felt, as the largest stakeholder Of Beth
lehem and as the one executive who
did not benefit from the bonus system,
that was in q position to do this work
more effectively without publishing the
amounts to the world.
Those are the real reasons why more
publicity was not given to the Bethle-
hem bonus But understand! I re-
peated on many occasions that Mr..
Grace was making more than a million
dollars year by a combination Of sal
airy and bonus"
The whole matter will come up for
discussion at the annual meeting Of
the Bethlehem Co. on April IA next,
because one Of the special purposes Of
the meeting Is ito secure the approval
and ratification Of the bonus system"
Fuel OH.
The name "fuel oir' is Of compare
lively recent origin. Few people un-
derstood what it was 10 years ago. But
today the name Is well known IN every
part of the globe. World production
of fuel oil now amounts to about $780,
000, 900 barrels annually, according to
the recent index, published by the
New York Trust Co. This annual
production Of fuel oil Is equivalent to
176,0O0,000 short tons Of coal
The United States uses about two
thirds Of the worlds annual produc-
ton Of fuel oil, distributed as follows:
Barrels.
Steamships ............9 30, 900 900
Railroads 70, 900 900
Petroleum industry. $1,000. 80, 600, 900
Commercial and domestic
heating. .......s.s........o U,VyO,UOO
manufacturing .s...s..ssss..9 U,UVVsVVU
Power plants. ...............SU, UVO,VOO
Iron and steel. .2O,OOO,UOO
Obviously, the increase in the use
Of fuel oil has resulted in decrease
in the use of coal The future of coal,
therefore, Is largely tied up with that
Of fuel oil and natural gas.
Natural Gas Consumption.
Natural gas, too, is q comparatively
recent commercial product. Outside OF
the United States it is still little known,
for the United States consumes more
than 95 per cent of the worlds natural
gas annually. The bulk OF the re-
manning per cent Is used outside OF
the United States In connection with
oil field operations, and does not COM
pete In any appreciable degree with
either fuel oil or coal. :.
AS late as 1919 the consumption OF
natural gas In the United States was
but 582 600 OO0, 900 cubic feet. Sixteen
years later, 1929, the total consumption
was 1917, 900 ,00O, 900 cubic feet--about
three times as much.
California, Texas and LOUISIANA are
the centerS Of natural gas production.
Little coal is found in any OF these
States but there Is q considerable
amount of fuel oil used. So the expand
ing Of the natural gas activities Is AZ
the expense Of fuel oil.
IT'S only in the last two or three
years that natural gas has started 70
compete actively with coal. Long-dts-
lance pipe lines are now being built to
carry the gas to many Middle Western
and Southern cities, such az, st. Louis,
Birmingham, Denver, Atlanta, and Chi
cago. and this is likely TO result in q
considerable decrease in the use of coal.
About 80 per cent Of the natural gas
now produced is used in industry, but
the number Of domestic users Is increas-
ing rapidly, and the coal and fuel oil
industries may expect to find natural
gas a formidable competitor before very
long.
The War Debt.
Prof. Harold j. Lasld Of London adj
vises against the United States rebat-
ing q dime of the war debt which Eu-
ropean nations owe unless the various
nations give satisfactory pledges OF dis
armament.
This British professor sees plenty of
trouble in Europe ahead. He sees one
particularly bad situation in the treat
ment of minoritieS in various European
countries.
I'm the relationship of Italy to Jugo-
slavia there's plenty Of combuStible ma
terial," says Prof Laski. "Italy's inter-
nal conditions may lead to q confla-
enlng menace 80 other European ma
lions, is convinced that Poland Is the
nation out of which war viii come.
However, reports from Europe in re-
cent weeks indicate that business con-