New-York tribune., 1912-01-03
TO RAY BOND INTEREST
AIIis-ChaImerS Committee Makes
Deal with Central Trust Co.
STOCK IS TO BE ASSESSED
Thought Likely Proceedings for
a Receivership Will Be
Started Soon.

The January interest on the first mort
gage . per cent bonds of the Allis-Chalmers
Company. which has been defaulted by the
comrany will be advanced to bondholders
who deposit their securities with the bona
holders protective committee. headed by
James y Wallace, which has arranged
with the Central Trust Company. the de
positary for the committee, to advance the
amount Of the January coupons upon the
security of the respective bonds and cou-
pons deposited. Interest at the rate OF
per cent year will be charged by the
trust company.
1t is understood that the plan now in con-
temptation for a reorganization OF the
AIlis. Chalmers Company will call for an
assessment on the preferred and common
stocks. Just how large the assessment VIII
be has not been learned. but Il Is not'i
probable that the stockholders will be asked
to raise a considerable proportion of the
additional working capital of which the
company stands in need
The bonded Indebtedness will also be cut
down so as to reduce fixed charges TO a
considerable extent. While nothing official
is vet obtainable as to what disposition VIII
be made of the sl1,14S,OO0 first mortgage o
per cent bonds in the hands of the pubic
and the $4,000 additional which has been
pledged as collateral for loans, the best
opinion is that the bondholders will he
asked to accept new preferred stock IN
whole or in part for their bonds.
According to a statement recently ISSUED
hy the company, its current liabilities. In
Guiding those for which the $4,000 bonds
are pledged, amount TO $2670,0OO, while the
surplus of current assets over current debts
IS estimated at N1S0,000. This estimate Is
assumed 10 be on the basis of value to a
going concern.
The question of a receivership for the
corporation is still I'm allegiance, though 1t
is thought likely that such proceedings VIII
he undertaken in behalf of the bondholders
IN due time. It is provided in the mortgage
that foreclosure suit cannot be Instituted
until ninety days after the default Of in
terest or the bonds, but il is not believed
there would be much difficulty in finding a
way 10 secure a receivership before the
lapse Of three, months If the bondholders
deem IT advisable TO do so.
The company is now operating 10 the eX-
tent Of about 30 per cent of its capacity,
although during q, large part of the year
II was operating at about only p per cent
of capacity. 1t Is one of the largest manu-
facturers in the world of machinery used
by sawmils and -four mills. and this branch
Of industry has been especially dull during
the last year. calling for little new ma
chinery Likewise, there has not been the
usual demand for heavy mining machinery
which this company manufactures.
Allis-Chalmers ; per cent bonds opened
at - yesterday, a point above Saturday.
closing figure, dropped to j2l3 Oh the next
sale, recovered to 81 and then advanced to
3d. at which they closed. net gain of :
points on the days transactions. The com
mon and preferred stocks Of the company
were firm The former closed at ~. un-
chal ged from Saturdays fnal figure, while
the preferred closed a S, a net gain of halt
a point.