New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-07
Westinghouse to
Withdraw from
European Field
Sale of Controlling Interest
in British Subsidiary I'm
der Negotiation

Negotiations for the sale by the
Westinghouse Electric and Manufact-
uring Company of its stock control OF
the British Westinghouse Electric and
Manufacturing Company, Ltd, which
in turn carries control of the French
and Italian Westinghouse companies,
have been practically completed. Con-
summation of the programme agreed
upon between the American and Eng
lsh interests will mean another step
toward the abandonment of the large
foreign investments Of the American
Westinghouse interests, the book value
Of which at one time exceeded $685.
100000. The company began the liqui-
dation of its Russian property invest
ments in 1913. 1t sold its investment
in the French Westinghouse in 1915.
Confirmation of the report that the
American company is arranging to dis
pose of its stock ownership in the British
corporation was obtained at the local
Westinghouse Offices yesterday, but de-
tails were withheld. II was learned,
however, on the best authority that the
agreement involves the organization
of holding company in Great Britain.
backed by English capitalists. to buy
the shares and debenture stock of the
British Westinghouse now held by the
American Westinghouse. It is pro-
posed that the new holding company
shall issue to the American sellers in
payment approximately S6,250,OOO Of 5
per cent first lien bonds, redeemable in
ten years, creating a first charge upon
all property OF the holding company.
In addition, half of the 100000 Of
common stock Of the new holding COM
pany is to be given the American VEN
ders as part payment for their share
IN the British Westinghouse.
The British concern has outstanding
at the present time 100000 Of pre-
ferred stock and S750.00O OF common.
each with par Of $40 a share. There
is also an issue Of S6,020. 562 Of per
cent mortgage debenture stock. II was
stated yesterday that the American
company's interest in the preferred and
common stock exceeded 30 per cent Of
the total. This was carried at a book
value Of 81 ,30S ,075 i'm the annual re-
port Of 1915 operations, the last date
on which the American company pub
liShed "A statement Of its foreign in
vestments. At that time holdings of
the British corporation debenture stock
were carried at S3,13I1Ol.
Proposed New Capitalization
Details Of the formation of the new
British holding company indicate that
1t will have a capital Of S2.5OO,0O0. di-
vided in $1,000. 600 6 per cent preferred
stock, with a par value of s. share.
end Sl000,000 of common stock Of the
same par value. II is ar present pro-
posed to issue only 100000 preferred
and 100000 of common. one-half Of
the latter to be allotted the American
corporation in part payment. Il is pro-
vlded that the holding company shall,
in order to give additional security TO
the first lien bonds, acquire not less
than 10000 preferred shares, Of SO
par. in the British company
Advices received here state that
iVHtiihi HHdHtldl EiOuD III England
has expressed a willingness 10 find the
necessary funds for the holding COM
pany. thus enabling 1T 20 subscribe for
the 10000 new preferred stock and
also undertake 10 subscribe. as and
when required, S2,jO0OO0 in second de-
bentures of the British company. on
condition Of an immediate issue 10 the.
holding company at par of 100000 de-
ferred shares OF ! shilling each These
shares are to be entitled 10 a dividend
at the rate Of ~ per cent after pay
ment of dividends at the rate of - and
80 per cent respectively on the pre-
ferred and common shares, and are TO
carry one vote for each share. This
will give the company $3,75O,OO of new
capital. besides transferring control
from American to English hands, it is
asserted.
English Company Formed in 1903
The British Westinghouse Electric
and Manufacturing Company. Ltd, was
organized in 1899 I'm 1903 il com
pleted the construction and equipment
Of immense works for the manufacture
of electric apparatus. steam turbines
and gas engines. At a recent date its
real estate holdings comprised 1873
acres.
The American Westinghouse sold its
investment in the capital stock Of tho
Soclete Anonyme Westinghouse, Of
Havre the French company. i'm 1915 TO
the British Westinghouse. The British
company now owns the controlling in
terest IN the French company. and
h. h.. IL