Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-20
Ship Building Company Gets
5 1000, 900 Loan to Save
Its Business
BIG CONCERN is HARD PRESSED
United States Steel Corporation Large
Iy Interested in the New Deal-The
Firm to Be Reorsanized and placed
on New Basis-New Men to Be
Placed at Head of It's Affairs.

Philadelphia, Pa, April 20.-Through
the successful negotiation of a $4,000,
900 loan on terms which involve a
practical reorganization under new
management, William Cramp & Sons
Ship and Engine Building company OF
this city which has built many of the
best ship for the new navy Is well as
fighting vessels for Russia and Japan,
has been saved from the imminent dam
ger Of having to pass in to the hands
Of a receiver.
With q plant which is conservatively
valued at $12, 100000. with a large
share of the United States govern
ment's best naval contracts awarded
to it year after veal the Cramp con-
Germ has been in sore need for sew
eral years of an increase in it's avail
able working capital.
The Cramp firm has outstanding
or $4,000, 600. Much of the firms out
standing paper is held in New York
City, and this accounts in part for the
fact that the president of the First
National bank of New York and other
large interests centering in the metro
polls have been active in floating he
present loan.
The United States Steel corporation
is also largely interested in the reor-
ganization. The Cramp company, one
OF the greatest consumers of its pro-
ducts, has been one of its most ex-
tensive customers.
In negotiating the present readjust-.
ment of the ship building company's
affairs, Drexel & Co., have taken a
leading part, and what they have don
has had the approval at every step of
j. Pierpont Morgan and of Clement A.
Griscom, president OF the International
Marine Navigation company.
Drexel & Co., after an effort extend
ing over several weeks. have succeed
ed in organizing a syndicate of bankers
in this city and New York who will
loan to the company $4,000. 900 at once.
and will make an additional loan of
SO, 100000 later. The active control OF
the business as soon as the deal shall.
have been ratified by a majority of
the Stockholders, will then pass into
the hands of a voting trust, the mem
bership of which will be dictated by
the bankers, and an operating COM
mittee. which will directly supervise
the work of the great plant. though
Charles III. Cramp is expected to re-
main at the head of the as
its president. 1t is authoritatively stat
ed that the oar will run for twenty
five years and that the voting trust
will continue thruout that period.
To facilitate the reorganization on a
basis satisfactory to the new element,
which will dominate it, all the present
directors of the company will resign,
though some will doubtless be request
to remain or will be reelected.
1t is stipulated that the underwrit-
ing bankers shall pay 80 per cen for
the bonds to be issued representing the
loan, and that they shall receive in adj
dition a bonus of 20 per cent of the
value of their subscriptions in stock
of the William Cramp g. Sons Ship and
Building company.
Drexel & Co. are to get 5 per cent
of the total issue in stock at their com
p%ensation for floating the loan. That
will make an addition to the company's
capital of 81, 900 5000. The
receipts by the Cramp company for
the $6,250,000 Of new bonds and stock
will be $4,000, 900.