The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-28
Big MERGER PROPOSED
PLANS OF THE UNITED STATES SHIP.
BUILDING CONCERN.
Proposition Made to ReOrganize Under
Name of Bethlehem Steel and
Shipbuilding Company.

NEW YORK, May ZI-PlanS Tor the re-
organization of the United States Ship
building Company were made public to-
night. They have been prepared and will
be carried out by committee consisting of
George r. Sheldon, chairman; Charles s.
Fairchild, president of New York Security
and Trust Company; John z. Borne. pres
ident of the Colonial Trust Company; Max
and Charles w. Wetmore, president of the
North American Company.
The plan provides for the organization Of
the company with the title of Bethlehem
Steel and Shipbuilding Company. The
properties to be taken are: Union iron
works. San Francisco; Bath iron works,
limited, Bath, Me-; Hyde Windlass Com
pany, Bath. Me-; Crescent Shipyard Com
pany, Elizabethport, N. j.; Canada Man
ufacturing Company. Carteret. N. j.; Sam
eul L. Moore & Sons Company, Elizabeth
port. N. j.; Eastern Shipbuilding Com
pany, New London, Conn.,. Harlan & Hol-
lingsworth Company, Wilmington. Del. /:
also all of the capital stock Except direc-
tors qualification shares) Of the Bethlehem
Steel Company, owning the Bethlehem
steel works and property in the boroughs
of South Bethlehem and Northampton
Heights.
The United States Shipbuilding Com
pany and said allied corporations also own
merchandise. bills receivable, contracts, ac-
counts. cash and other personal property,
together with trade marks, patents and
good will. The capitalization of the present
company consists of s1O.0OO,00O of twenty-five
year per cent. collateral and mortgage
bonds, $l450O,OO0 Of first mortgage sinking
fund gold bonds, $40, 900 of per cent.
@ Of TSs and
company has a floating Indebtedness of
81, 1896. 740 and the Bethlehem Steel Company
a floating Indebtedness of s1,39S.524. making
q total of So, 264. The underlying liens of
the Bethlehem Iron Company are 81, 35l 900
of per cent. first mortgage bonds and of
the Bethlehem Steel Company N.500,0OO Of s
per cent. purchase money bonds. This
makes total capitalization and liabilities
for the three companies Of $S1 ,6S6,26
1t is proposed that the new company in
the acquisition of all the properties and as
constituent companies, including the Beth
lehem Steel Company and for the securing
of additional cash working capital shall is
sue sla'o w S OF tnirty1year per cent hrst
by a first mortgage bond on all the proper
ties including the plant or capital stock Of
the Bethlehem Steel Company and of the
Bethlehem Iron Company, subject only to
the underlying mortgages of those COM
panies. The mortgage provides for contin-
ued maintenance for the first three years
capital in excess of all Indebtedness Of
every kind except bonded indebtedness and
100000 thereafter. There is to be issued
voting trust certificates for s16,0O0000 of 2
This stock is preferred as to assets as we'll
as to dividends Voting trust certificates
will be issued for $l3,0Oo,00O of common
stock.
The holders of the present per cent COL
lateral and mortgage bonds Of the company
are to receive all of the So. 100000 of new
bonds pro rata on furnishing 100000 in
cash as additional working capital; also the
interest due on Aug. 1. 1903, or the bonds
deposited. The holders of the first mort
gage sinking fund gold bonds are TO receive
also the interest in cash due on July /, 1903
The remainder of the preferred stock, near
ly s1,5Oo,Oo0. will be issued to holders of the
twenty-year per cent. collateral and mort
gage bonds. OF the common stocks 81 800 900
is to be issued to holders Of the present first
mortgage sinking fund gold bonds 81 900 900
collateral and mortgage bonds, IS, 600 900. or
10 per cent OF their present holding. to the
present preferred stockholders and 81 500 OOO
or 10 per cent, to the holders of the pres
ent common stock.
The total capitalization of the new COM
pany will be $43, 600 600, and its fixed charges
Will be S517.55o for interest on the underiy-
ing bonds of the Bethlehem Iron and the
Bethlehem Steel companies and 5000 600 on
the first mortgage bonds of the new COM
pany. a total of sl117.55o. To this should be
added. after the first five years. s25OOOO a
year for the sinking fund TO retire the new
first mortgage bonds.
To secure continuity In the management
of the new corporation 1t is purposed to
create voting trust for period Of seven
years. The initial voting trustees will be
Messrs. Charles NJ. Schwab. George r. Shell
don. Max Pam. Charles w Wetmore and
James II. Reed. of Pittsburg
The plan has already been approved nv
the holders of large amounts of various Sc
curities.