Bethlehem's Dividend

Bethlehem Steel has a certain aura about it which has come down from War days. It was, all in all, America's greatest "war baby." Dividends on its common stock have not only been continuous since 1916, but they reached 7 1/2% quarterly on the 150,000 original common shares during 1916-1917 and in April, 1917, touched 10% quarterly. Accordingly, the recent omission of Bethlehem's dividend attracted more than passing interest. For the quarter ending June 30, 1924, the company earned $1,278,277 net, which amounts to only 11-c- a share on its present common stock.

Bethlehem Steel may be said to be paying the price of over-rapid expan- sion. After absorbing the Midvale, Cambria and Lackawanna properties, it found that large sums were required to modernize and coordinate them. Meanwhile the steel business has been undergoing a very severe slump during the last few months. U. S. Steel came an even worse crop- per in 1903-4, just after its organization. Bethlehem Steel is just now experiencing a period of the same sort of difficulties, and the company's directors were no doubt wise in resolving to conserve cash at the expense of common stockholders until earnings improve.