Business: Contingent Interest

From Dusseldorf, Germany, last week came despatches that the Vereinigte Stahlwerke (United Steel Works), second in size only to the United States Steel Corp., had signed contracts for a $34,000,000 loan—$30,000,000 to be sold in the U. S. through Dillon, Read & Co., and $4,000,000 in England, Switzerland, Holland, Sweden. An unusual feature of the proposed bonds is that they will draw interest and in addition will get 6½% more for every 1% increase in Vereinigte Stahlwerke's common stock dividend rate. The common rate is now 6%. If it becomes 1%, the new...

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