Evening star., 1941-08-01
Bethlehem Steel Sets
Production, Pay Roll
Records in Quarter
$5,65l ,457 Net Income
Also Reflects Reduction
Because Of Taxes


BY the Associated Press.
NEW YORK, Aug. 1.-The Bethle-
hem Steel Corp. set records in the
June quarter for production. payroll,
employees and taxes, it was disclosed
yesterday in its quarterly statement.
Because of the taxes, the COM
pany's net income for the period
was only S5,651.457 or $l.54 a COM
mon share, compared with SlO,807.-
3lS. or $307 a share in the like 1910
period and s10,4S6O O28. or S2.95 in
the first three months OF 194l.
The company provided SIT $50 600
for income and Federal and excess
profits taxes in the June quarter as
compared with s7,270, 900 in the first
quarter. The large increase was
made necessary, 1t was explained,
to provide for an excess in the likely
first quarter taxes over what was
expected at that time.
At 1925 of Capacity.
Disclosing that the company op-
Grated during the first three months
at 1925 per cent of the theoretical
capacity and had, for II months
past, surpassed 100 per cent of that
capacity, E. G.. Grace, president,
said a shortage of iron and steel
scrap might shortly hamper pro-
duction throughout the steel in
dustry.
He disclosed that the Government
had under consideration a plan for
a country wide scrap iron and steel
drive similar to the recent aluminium
drive.
Discussing the extent OF taxation,
Mr.. Grace said SO per cent Of the
company's total earnings went to the
tax collector. He estimated this rate
as equal to S23 on each share OF
common stock outstanding.
s2.6S Per Ton Profit.
The company's profits for six
months from all operations. includ-
ing shipbuilding and repairs, he
said were equal to S2.68 for every
ton of steel produced or, in other
words, per cent of the value OF
sales. In comparison, operations
during the whole year of 1910 were
equal to a profit of s454 a ton, or
per cent of the billing.
He estimated the value of orders
on hand on June 30-of which So
to 40 per cent are directly for de-
/ fense-at s1.367, 500 600. the largest
in the history of the company. This
figure compares with 81 ,323 200 900
on March 81 and only S28S. .521 ,487
on June 80, 1910.
/ He declined to disclose the value
of tonnage Of shipments in the three
months ended June 80, but said they,
too, constituted record.
other records we're established for
employment: 156,S0l workers in the
June quarter were paid $84, ,629 900,
| compared with 1885 who received
s48. .457 900 in the like 1870 period
and l41,321 receiving sS,406-0 900 in
the first quarter OF l94l.
Average Earnings S1.05.
Their average hourly earnings
were slO5 for 392 hours week in
the June quarter, compared with 81
/ cents for 37.9 hours week IN the
March quarter and 90 cents for IS
hours q week in June quarter OF
1910.
| Mr., Grace disclosed that the COM
pany had spent this year Sl8-2000OO
of its own money for plant expansion
and intends to spend $4,000. 900
more in the coming months. The
company also has spent for the ac-
count of the Government $4,000 900
and must spend $50, 600 600 more for
| this account in the construction OF
new factories to be owned by the
Government, but operated by Beth
lehem.
Concerning proposals, made In
Washington, for huge increase in
the steelmaking capacity of the Ma
ton, MIR. Grace reiterated that in
creased supplies of scrap W>uld be
necessary for any actual increase, at
least within the next few years. OF
steel production. He estimated that
it would require from II to IA
months to enlarge pig iron making
capacities sufficiently to serve en-
! larged steel mills.
Will Pay Big Bill.
You are going to have to pay a
big bill if you have to use pig iron
in place of scrap" ne said.
As an indication of the likelihood
| that housewives. businessmen and
other citizens may soon be called
upon to donate old iron and steel
! Junk to the Government for de-
fense use, Mr.. Grace disclosed that
the Bethlehem Co. actually has been
buying scrap from Mexico and Cuba
at prices above the domestic market
because not sufficient metal was
obtainable here.
Directors of the corporation Or
dered a dividend of $50 a share
on the common stock, payable Sep
| tember 2 to stock of record August
III The same amount was paid in