JAS. H. OLIPHANT & CO. 
that $170,847,000 of the issue represents $174,147,000 cash paid 
in of which 629% in the 1901-1906 period was in hundred cent dol- 
lars. Its property and finances now in good order, this major trunk 
line system is ready to partake fully of whatever prosperity the 
country has, and the stock is establishing a surer place among in- 
vestment equities. 
Bethlehem Steel Corporation 
The existing 7,600,000-ton ingot capacity of Bethlehem Steel 
Corp. compares with 8,050,000 in 1921 before the Lackawanna and 
Midvale-Cambria acquisitions, with 848,000 in 1914 before the war 
expansion, and with 130,000 in 1905 following organization. 
The war winnings were made permanent, the inflated or otherwise 
doubtful values in plant additions were extinguished, by dis- 
posing the profits from 1915 to 1921 only $27,095,000 for common 
dividends against $100,998,000 reserved for depreciation, ete., and 
$100,162,000 turned into surplus. Bethlehem in 1922 reported 
that ‘adequate adjustment’’ had been effected. 
The subsequent step was absorption of Lackawanna Steel in 
October, 1922 and the Midvale and Cambria properties in March, 
1923 which was accomplished by exchange of $132,790,000 ($12,- 
500,000 preferred) Bethlehem stock for $182,286,000 (later writ- 
ten down $25,514,000 to be conservative) net book value of assets. 
In the years since, including 1926, roundly $90,000,000 has been 
devoted to construction of finishing mills (bar, wire, tinplate, and 
structural) and to modernization of plants (with electric power, 
new machinery, ete.) so that products now are diversified into a 
practically complete line and costs are reduced as much in some 
plants as $5 a ton. 
Aside from increases due to issuing stock and assuming bonds in 
consolidation and ‘to converting 8% into 7% preferred stock at a 
premium, the net addition to capitalization from 1921 to 1926 was 
less than the $35,000,000 preferred stock sold early last year. 
Balance of funds for improvement is represented in $22,025,000 
surplus earnings and $55,860,000 depreciation during five years 
to December 31 last and some $20,000,000 liquidation of inventories. 
Meantime, largely owing to plant rearrangement, the average 
rate of operation was but 68.2% of capacity in 1923, 58.2% in 
1924, and 70.83% in 1925, advancing to 81.1% in 1926. Beyond 
argument the earning power of Bethlehem was obstructed in this 
integration period now completed. Net per share of common 
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