New-York tribune., 1906-10-02
Financial.
acial. Financial.
To the Holders of the First
Mortgage Thirty-year Six
Per Cent. Gold Bonds of the
National Starch Manufacture
ing Co.:

NGEAOlkd1 OtdTC1a MEdaluIdCluc.
ing Co.:
New York, Oct. 1st 1906.
Of the many active and wemaintaned starch plants
throughout the United States which constituted the
original security for the payment of your bonds only
two are now in operation. The remainder having been
idle for several years, dismantled uninsured and
rapidly deeriorating that without attention they will
soon become vaueesS for factory purposes.
THE NATIONAL STARCH COMPANY, the
present Of these plants, has, at various times
arranged sales of several of these inactive properties but
the Trustee under the mortgage has refused to release
the property sold and accept lieu thereof the
sderaon to be received 1t quite apparent that
unless method can be devised by which these de-
cayng properties may be disposed of, the bondhoders
will be without adequate security for the payment of
their bonds
1t has, therefore, been proposed that the
CORN PRODUCTS REFINING COMPANY,
being the owner of about ninety-four per cent.
of the stock of the Corn Products Company,
which in turn OWNS practically all of the stock
of the National Starch Company, should acquire
all the outstanding NATIONAL STARCH
MANUFACTURING COMPANY First Mortgage
Bonds, amounting to S2,S43,OOO, and thus,
upon the sale of any of the plants covered by the
above mortgage, the Corn Products Refining
Company, the owner of all of said Bonds,
might consent to the release of such property
from the lien of the mortgage.
This proposition is acceptable to the Corn Products
Refining Company upon the following conditions:
The Corn Products Refining Co. will issue 2,s4s
Twenty five Year Debenture Gold Bonds of $1,000
each aggregatng 50 2843OOO, bearing interest at 49,
payable semannualy, to be exchanged for equal
amount par value of the outstanding First Mortgage
Thirty Year so Gold Bonds of the National Starch
Manufacturing Co.
These Debenture Bonds will be issued under an
agreement to be made with the Title Guarantee Trust
Company of New York City, as Trustee, by which Com
pany all Debentures will be authenticated. Said agree
ment among other things. provides for:
(a) A sinking fund for the retirement of the full
amount of the Debentres at par and accrued interest
within twenty five years from the date thereof
(b) Including the outstanding Debentures in any
mortgage to be hereafter given by said Corn Products
Refining Company securing the payment of any bonds
to be issued by it, other than purchase money mortgage
1t is believed that the Five Per Cent Debenture
Bonds of the Corn Products Refining Company will
provide better security than the present Six Per Cent
First Mortgage Bonds of the National Starch Manu-
featuring Company, inasmuch the Corn Products
Refining Company, in addition to its holdings of stock
of the Corn Products Company, controls the
New York Glucose Company, the Warner Sugar Re-
fning Company and the ST. Louis Glucose Company.
While the holders of large number of the First
Mortgage Bonds of National Starch Manufacturing
Company have already expressed their willingness to
exchange their bonds above proposed yet the carrying
out of this plan depends upon the Corn Products Ren
ing Company acquiring practically the entire outstand
ing issue Of National Starch Manufacturing First Mort
gage Bonds and the right reserved to declare the plan
imperative in all of those bonds outstanding are
not acquired.
THE TITLE GUARANTEE 6 TRUST CON-
PANY is prepared to receive your bonds on
deposit to be thus exchanged. Coupons payable
May |, 1907. and subsequently must be attached
to all bonds deposited. Registered bonds must be
accompanied by forms of transfer in blank, the
execution of which must be properly witnessed
and acknowledged If the plan is declared nopera-
tive bonds deposited will be returned without
expense upon surrender of certificates of deposit
Copies of the proposed Debenture Bonds and the
Agreement under which the to be issued may
be had upon application at Title Guarantee & Trust
Company, 176 Broadway, New York City.
NATIONAL STARCH COMPANY
CORN PRODUCTS REFINING COMPANY
STEELE & OTIS, Counsel.