Studies in securities

Bibliographic data

Monograph

Identifikator:: 1757542078

URN:: urn:nbn:de:zbw-retromon-134903

Document type:: Monograph

Title:: Studies in securities

Edition:: Revised

Place of publication:: New York

Publisher:: Jas. J. Oliphant & Co.

Year of publication:: 1927

Scope:: 81 S.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Bethlehem Steel Corporation

Collection:: Economics Books

STUDIES IN SECURITIES stock was $6.46 (on average outstanding) in 1923, $2.56 (while steel prices dropped $10 a ton and operations touched 319% rate) in 1924, $5.30 in 1925, and $7.48 in 1926. These earnings and the prospects now support an expectation of early dividend resump- tion. Fact that a balance has been earned for the common every year since 1909 is a sidelight on Bethlehem management. Capital structure of Bethlehem Steel comprises $207,906,000 funded debt (reduced $29,200,000 net since January 1, 1925 with saving of $1,800,000 interest charge per annum) equal to $27.30 per ton of ingot capacity, $97,000,000 7% cumulative preferred stock (simplified from three issues in 1922) or $12.70 a ton, and $180,000,000 common stock or $23.70 a ton. Capital ahead of the common is $23 a ton less than beginning 1922. Comparatively with U. S. Steel, under this rule-of-thumb Bethle- hem, rated at a third the Corporation’s capacity, has only $1 more bonds and preferred stock and $1.30 more common stock per ton, and the bare bones of ingot capacity are filled out with finishing capacity now something like as well; in Eastern and Pacific markets the Sparrow’s Point, Baltimore, and South Beth- lehem plants have a decided freight rate advantage. At the present level (50) the Bethlehem Steel common stock equity Is priced not materially above the lowest (37) in a decade, not- withstanding that $164 per share applicable assets seem nearer a dividend yield with greater earning ability for speculation. Chicago & North Western Ry. The map speaks better for Chicago & North Western Ry. than do the earning statements for recent years. Of mileage 70% lies in Wisconsin, Iowa, Illinois, Michigan, and Minnesota, and 45% honeycombs the two first named, all intensively producing land which is neither sparsely settled nor over-railroaded and therefore unlike the real Northwest as it is now or the Southwest as it was. Operation of the railroad has yielded common dividends without a break from 1878; at 7% 1902 to 1920, and from 1880 except in 1895 never less than 5% until 1923, the total payment for which year was 4%, the current rate, just keeping the bonds ‘‘legal’’ in- vestments. The high prestige formerly attaching to the common stock is seen in the record of a lowest price of 11814 in fifteen pre- war years and a quotation above 130 as late as 1916. Adversity dragged the shares down in 1923, 1924 and again in 1925 to a market value less than half of par. 311

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