Boom in Bessie 6s

One of the largest bond redemption premiums in Wall Street history was chalked up last week when giant Bethlehem Steel Corp. offered $1,810 each for its $1,000 par 6% bonds due in 1998. Before most speculators knew what the bidding was all about, the bonds had spurted 27 1/2 points to 180--a record price.

For this lush offer Bethlehem Steel had two hardheaded reasons: 1) it saves money now because the 1942 Revenue Act permits corporations to retire debt with their 10% excess-profits tax refund; 2) it saves money later because each bond would draw $3,360 interest if outstanding until maturity. Best of all it means, less debt and fixed charges to burden the company in the post-war era--when demand for steel will be down and competition way up.

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