Evening journal., 1903-04-22
BIC LOAN SAVES
CRAMP & SONS
New York and Philadelphia
Financiers Take Ship
building Plant
In NEED OF WORKING CAPITAL
Syndicate Formed BY Drexel & Co,
Negotiated Loan Of Seven. and "a
Half Millions for That Famous Com

pany.
Wilmington shipbuilders and other busi-
ness men OF this city, were greatly sur
prised when It became known several days
ago that the William Cramp and Sons
Ship and Engine Building Company, Of
Philadelphia, which has built many OF the
best ships for the new navy, as well as
fighting vessels for Russia and Japan,
had been saved from the danger OF passing
into the hands of a receiver. This was
done through the successful negotiation
of a $5OOO,OOO loan on terms which in
volve practical reorganization under new
management.
With a plant which according to re-
cent estimate of the Audit Company Of
New York. is conservatively valued at
Sl2,5o0OO0. with an international, reputa-
ton and with large share Of the United
States Governments best naval contracts
awarded it year after year. the Cramps
concern has been in sore need for several
years Of an Increase in dts available work
ing capital. 1t has outstanding notes TO
meet amounting to 100000 or 100000
Much of the firms outstanding paper IS
held in New York city. and this accounts
In part for the fact That George f. Baker
president of the First National Bank Of
New York, and other large interests CEN
trng in the metropolis, have been active
in floating the present loan. and will
doubtless be influential in directing tho
future policies Of the company.
The United States Steel Corporation Is
also largely interested in the reorganiza-
ton. The Cramp company is one of the
greatest consumers of its products and
has been one of Its most extensive Gus
toners.
Drexel and Company have taken a lead
ing part in negotiating the present re-
adjustment Of the company's affairs and
what they have done has been approved
by J. Pierpont Morgan and Clement A
Griscom.
Drexel and Company. after an effort ex-
tending over several weeks. have succeed
ed in organizing a syndicate Of bankers ir
Philadelphia and New York that will loar
TO the company S5.OOO,OOO at once and will
make an additional loan of s., $780, 900 later
Active control Of the business as soon a.
the deal shall have been ratified by ma
iority Of the stockholders, will then pas.
into the hands of a voting trust, the mem
bership OF which will be dictated by tbs
bankers and an Operating Committee
which will directly supervise the work OF
the great plant, though Charles II. CramI
Is expected TO remain at the head Of the
company as its president. 10 is authorita'
lively stated that the loan will run foi
twenty-five years and that the voting
trust will continue dhroughoutthat period
The present directors are Charles II
Cramp, Thomas Dolan. Morton McAiichael
Clement A. Griscom, William IT. Barnes
Edwin S. Cramp Henry M. Cramp
Samuel Dickson and Henry Seligman.
The officers are; Charles II. Cramp
president; Henry W. Cramp vice-presiden
and treasurer. and Charles T. Taylor, sec
retary.
The stock Of the william Cramp ant
Son Ship and Engine Building Compan,
dropped from 81 to s7ls yesterday.
1t was at once concluded that hitcl
Of some kind had occurred in the propose,
bond issue and, consequently, It was no
long before a rumor ITO this effect wal
circulated on the street. 1t met will
prompt and official denial, however, ant
at Drexel and Company's, which has thu
issue in charge, it was said that the ar
rangements for the issue had been practi
cally completed.