New-York tribune., 1903-05-28
SHIPBUILDING PLAN OUT.
CAPITAL CUT IN TWO.
Fired Charges Reduced-s2, ,0OO,000
Ne7c UOrking Capital.


terest on the underlying bonds Of the bethIehenn
Steel Company and the Bethlehem Iron Com
pany and provides 100000 additional cash
capital. The necessity for the reorganization -
set forth at the beginning of the circular le''e4
issued to the holders of the Shipbuilding Com
pany's bonds and stocks by the reorganization
committee who say: by reason Of the exces-
sive mortgage obligations OF the United states
shipbunding Company its borrowing capacity
and credit have become so seriously affected
that outstanding notes being pressed for
payrnert and the making Of further loans is
rendered impossible. The United STATES
shipbuiding Company has been compelled, from
its organization, TO make advances, from time |
to time to its constituent companies. for work
ing capital and of operation. Of most OF the
available cash in hand. The reduction Of the
working capital thus disclosed and the in1prac-
ticabiity Of drawing upon the resources Of the |
shipbuiIding plants have resulted in material
impairment of the cash assets of the United
States Shipbuuding Company. The company
viii be unable. on July !, 1908, to meet the in
terest OF sinking fund accruing on its first mort
gage thrty-year bonds'
The reorganization plan has been prepared ana
will be carried out by committee consisting OF
George r Sheldon, chairman; Charles s. Fair
child president of the New-York Security and
Trust Company; John E. Borne, president Of the |
Colonial Trust Company; Max Pam and Charles |
W. Wetmore. president of the North American
Company. The counsel to the committee are |
Sullivan & Cromwell and Pam, Calhoun & Glen
non. Water w. Lee Of No 30 Wal-st, is secre-
tary of the committee. The securities affected
by the reorganization are TO be deposited with |
the City Trust Company Of New-York
COMPANY CHANCES TITLE.
The plan provides for the organization OF |
company with the title of Bethlehem Steel and |
Shipbuilding Company. The properties 10 De |
taken over are the Union Iron Works, San Fran |
cisco: the Bath Iron Works Limited, Bath Me; |
the Hyde Windlass Company, Bath Me; the |
Crescent Shpyard Company, Elizabethport |
n J.; the Canda Manufacturing Company. Car |
teret. N ]: the Samuel L. Moore & Sons Com |
pany, Eliza bethport, n. J.; the Eastern SNIP |
building Company. New-London, Conn, ana the !
Harlan & HoIlingsworth Company, Wilmington
Del. Also all of the capital stock, except dl- |
rectors' 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 Shipbudtng Company and |
the allied corporations mentioned also own mer- |
chandise, bills receivable contracts, accounts, |
cash and other personal property, together with |
trademarks patents and goodwill
The capitalization Of the present company con- /
sists of S1000O,0O0 Of twenty-fve-year per |
cent collateral and mortgage bonds, Sl40Ooooo
of first mortgage sinking fund gold bonds. ~
600 900 of 6 per cent non-curulative preferred /
stock and 25,0rO.0 900 of common stock all or |
which securities were admitted TO quotation on
the New-York Stock Exchange on January a. |
1908
The Shlpbuilding Company has hoanng IN
debtedness of 81 936. 740, and the Bethlenem
Steel Company a floating Indebtedness OF 81 /
39S 524 making a total Of $3.50. .Zo4
Ty-i0 NJ BeThIenSfQ
Company are 81 351 900 Of per cent first mort
gage bonds and of the Bethlehem Steel Com
panv. ST 5OO0O Of 6 per cent purchase money /
mortgage bonds. This makes a total capilai-
izatfon and liabilities of the three companies OF |
S81 $50 264
THE ISSUE OF BONDS
It is proposed that the new company IN tle
ACQUISITION of all the properties and assets OIL
the shipbuilding Company and its constituent
companies including the Bethlehem Steel Com
many. and for the securing of additional cash !
working capital, shall issue $i2'ooo'VO OF
thirty-year per cent first mortgage gold bonds,
These will be secured by first mortgage bond
upon all of the properties. including the plant /
or caQital stock Of the Bethlehem Steel Com
pany and of the Bethlehem Iron Company SUD-
iect only TO the SS,S51.o00 underlying mort
cages Of those two companies. The mortgage
provfdes for continued maintenance for the nrst
of working capital in excess Of all Indebtedness
of every kipd, except bonded lndepleoness' anu
100000 thereafter.
There are TO be issued voting trust certificates
for SIG 600 900 oil per cent noncumulatlve pre-
ferred stock. This stock is preferred as 10 as
SETS as well as to dividends. Voting trust GER
tffcates will be issued for S15,0OO,oeO OF com
stock ,,-.,
The holders of the present . per cent collateral
and mortgage bonds Of the company are 10 re-
ceive all of the S12,0000H0 of new bonds pro
rata upon furnishing S2.0O1oO0 in cash as addl-
tional working capital: also the interest due
August / 1908, upon the bonds deposited. Inc
holders of the first mortgage sinking fund goId
ho-5a ara IN receive 100 per cent in the new
4raferred stock also the interest in cash due
Julv | 1908. The rest of the preferred stock,
81, 100000. will be issued 70 nooers $ .. . e1e
twenty year > per cent collateral and mortgage
bonds OF the common stock, S2,9o0,opO is 10 De
issued to holders Of the present first mortgage
sinking fund gold bonds, 81 5DOOOo 10 holders OF
the tzzentv wear : per cent collateral and mort
gage bonds. IS 000.OOO. or 80 per cent OF thelr
T,Tesent holdings TO the present preferred stock
holders and $3.50 900, or 10 per cent, to the
holders of the present common STOCK
VOTING TRUST FOR SEVEN YEARS.
The total capitalization of the new company |
will be S43 O000 600 and its fixed charges will be
S5l7 800 for interest the underlying bonds Of
the Bethlehem Iron and Bethlehem Stee! com
nanies and S6OOO0O on the first mortgage bonds |
Of the new company, a total Of SLIT 800. To |
this should be added after the first five years
$3.50 yearly for the sinking fund to retire the
new first mortgage bonds. To secure cOntinu- |
ity in the management OF the new corporation, |
il js rroDosed to create a voting trust for a
period of seven years. The initial voting trus-
tees Will be Charles NJ. Schwab, George r. Shell |
don Max Pam, Charles w. Wetnore ana James /
Il. Reed, of Pittsburg.
The plan has already been approved by the |
holders OF large amounts OF the various secur-
tiles and II is understood is practically certain
f,a vrip ed