New-York tribune., 1917-06-08
Control of British
Westinghouse Go.
Passes to England
Result of Policy of Freeing
British Industry Of Foreign
Capital Domination
Special Cable to The Tribune

London. June I.
Rv resolution of the shareholders
control of the British Westinghouse
Electric and Manufacturing Company
has passed from America TO group OIL
birmingham capitalists representing
the Metropolitan Carriage. Wagon and
Finance Company. of which Dudley
Docker. who is also president OF the
Federation Of British Industries is
chairman. Mr. Decker IS also the pro-
prietor Of "The Globe The secretary
Of the company, Arthur Z. Soanes, to-
day described the transfer as an ac-
complished fact as far as his company
is concerned. although formal docu-
ments relating TO the transaction "i'h
The American company await compile
tion.
Will Benefit Company
According to the chairman Of the
British company. J. AMMAN Bryce, VI. +"
the deal was made as a result OF the
nolicv of British industry Of becom-
ING independent of foreign capital con,
troll The directors became convinced
that the business might be injured II
control OF the company remained IN
America. while it is believed that the
transferring of control to England VIII
benefit the company in every way
The sole object of the proposal
which originated on this side. was the
transfer of control from America 10
Rritain. The American company, now %
over. made it condition in the option
70 nurchase that a holding company
about 10 be formed, should acquire
10000 shares in the British compJy'
TO be deposited, along with the hoId-
inrs Of the latter company, IN the hands
Of the trustees for the first hen ponds
as security for the payment OF THESE
bonds. These shares represent col
lateral security to the American com
panv. but TO the British company they
represent $l,1O0,00O cash.
Favorable Terms
The interest which the American
companv will receive under the new
Arrangement will be the exact cquIva-
lent of the present return from the
British Westinghouse, on the basis oi
the latter paying ~ per cent on the
preference stock. SO far from beng
grasping. the American company was
even generous in its demands. The
price txed showed a loss Of nearly 81,
600 900 on the original American cash
investment. There was no necessity
for the American interests 10 part with
its holdings for several years, consent
being given only because they were
broadminded enough TO appreciate the
motives prompting the British COM
pany's request.
In return for making itself respon-
sible for SlO.OO0000. the holding COM
pany stipulated that il should hold a
'hrec-fourths voting power in the Brit
ish company To furnish this power,
it Is proposed that the British Westing
house shall issue to the holding com
pany, i'm return for Sl25.000 cash, 500,-
600 deferred shares Of | shilling each.
This stock. together with the other Sc
curities which the holding company
takes over. Will give il the requisite
majority.
Answering the criticism OF share
holders that they are being handed
over lock. stock and barrel in way
which will deprive them of any voice
iU iUf company - dIhliN. the fUhlIildil
said that although the directors didn't
consider the terms highly favorable,
they felt. on the whole, that the propo-
sition was a good one and should suit
everybody concerned.
The agreement was made last Jan
uary after the directors tried IN varl-
Gus ways to have the transfer Of the
control effected without putting them
cal h, l.
ests. Only when all possible efforts TO
raise the SlOOOO.OO0 required had
failed did they go to the Birmingham
group.
The shareholders passed tho neces-
sary resolution increasing the capital
with only one dissenting.
Guy Tripp. chairman Of tho board Of
directors Of the Westinghouse Electric
and Manufacturing Company, i'm dis
cussing yesterday the arrangement by
which the corporation will dispose Of
its controlling interest i'm the British
Westinghouse. said:
we arc negotiating for tho sale Of
our holdings IN tho British Wcst;nc-
house Electric & Manufacturing Com
pany to new company which has been.
or ls about to be organized. in London.
We shall retain a minority interest in
the new company.
he whole transaction Is based
upon an agreement under which the
interests Of the British company and
the American company become closely
allied 70 the end that the engineering
skill and organization of both com
panles viii be most effectively put to
use IN the markets of the world"