When the Johnstown Water Company was organized in 1866 the largest single stockholder was the Cambria Iron Company, which controlled a little over half the stock of the water company. This stock remained in the hands of the iron company, even when Cambria Iron Company became Cambria Steel Company and then Midvale Steel Company. However, in 1923 Bethlehem Steel Company of Bethlehem, Pennsylvania took over the Cambria Plant and all its holdings and made it a part of the Bethlehem system. Bethlehem now had a little more than half ownership of Johnstown Water Company. The remaining stock was in the hands of private individuals. In 1928 Bethlehem decided to gain complete ownership of the water company through the formation of a new corporation and the recapitalization of the company. Through the plan proposed by H. E. Lewis, vice-president of Bethlehem Steel Company and president of Johnstown Water Company since 1923, the minority stockholders were to accept eleven shares of six percent cumulative preferred stock in a new corporation in return for each share of common stock presently held. The holders of the new stock were to be entitled to a six percent yearly dividend on their eleven shares which, valuing the new preferred stock at $100 per share, would be a return of $66 yearly instead of $7.50 as formerly.

The plan was accepted by the water company stockholders and Bethlehem acquired control of all common or voting stock while the former stockholders received preferred stock. There were a few stockholders who would not sell but Bethlehem, through the new company formed for this transaction and known as Johnstown Water Corporation, now held full control of the Johnstown Water Company. After the acquisition of control by Bethlehem there were wholesale changes in management and on the board of directors. H. E. Lewis remained president, Quincey Bent and Charles W. Kunkle became vice-presidents, R. E. McMath became secretary, J. P. Bender, treasurer and Frank L. DeFrehn became assistant secretary and assistant treasurer.

Up until the time of the recapitalization Beth1ehem owned 1893 shares of stock, all of which had been originally owned by Cambria Iron Company.' There were 1857 shares outstanding. As of 1929, after the stock transaction, the stockholders were as follows:

By 1935 all the stockholders had turned over their stock except Harry Hager, who did not surrender his shares until December 1942, but in any case Bethlehem had complete control from 1928 on.

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