The sun., 1918-10-17
E.V.R. THAYER HEADS
FINANCE COMPANY
New Corporation Will Lend
Money to Public Utility
and War Concerns.
IT'S SCOPE NATIONWIDE
Capitalization Is 100000,
but May Soon Expand to
S20,OOO,OOO. y

Eugene V. r. Thayer. president OF the
Chase National Bank, was chosen presl-
lent of the ,newly formed Essential In
iustrles Finance Corporation at the or
yanization meeting held yesterday at
ternoon in the board room Of the Chase
Bank. Gerhard NJ. Dahl, vtce-president
II the Chase National Bank, and Fred
srick Strauss. member OF the firm of
J. & W. Seligmann & Co.. were elected
vice-presldents Of the corporation. A
permanent secretary and treasurer has
not been selected. The permanent list OF
directors was also selected yesterday.
Besides the officers the new directorate
includes the following!
F. b. Sweezy of First National Bank
Frederic w. Allen of Lee, Higginson &
Co.. Harold Stanley of Guaranty Trust
Company. Thomas W. Lamont Of J. p.
Morgan & Co.. Sidney 2. Mitchell OF
Electric Bond and Share Company, o.
n. Young OF General Electric Company.
z. w. Clark OF e. w. Clark & CO. of
Philadelphia, james ". wallace. presi-
dent Of Central Union Trust Company.
John Hays Hammond, Randall Morgan
Guy e Trip. president Of Westinghouse
Electric and Manufacturing Company,
and willard v, King. president of Co
lumbia Trust Company. E Pa - -!- 70 ,
The first business to come before the
company yesterday was the granting Of
loan to public utility company. There
will be another meeting OF the board
next week to conclude this loan. The
Essential Industries Corporation was
promoted by Mr. Thayer and Mr.. Strauss
primarily to assist the financing of pub
10 utility companies, but IFS scope has
been broadened to include all concerns
that contribute to the winning OF the
IN ~ a q MT 1tor
poration between the companies and the
War Finance Corporation and will make
no loan unless the same In rediscount-
able with the War Finance Corporation
The War Finance Corporation Is per-
mitted by law to rediscount the paper
purchased by the new corporation up to
100000. 1t can advance, however
only rs per cent OF the face value of
the paper. The Essential Industries
Corporation has a capitalization Of
$4,000, 900, divided as follows: $500, 900
dsbentures. 100000 capital and $780,
400 surplus The institutions repre-
sented on the permanent directorate
shared in subscriptions to the new cor
poration's capital
II could not be ascertained yesterday
whether similar corporations are to be
formed in Chicago. st. Louis and other
titles. but this New York corporation
will go far toward satisfying the most
pressing financial needs Of public utility
and other companies.
The problem Of war time financing
Of essential industries has been dis
cussed for several months. At q meet
ng last June It developed that bankers
Individually were unwilling to lend their
Endorsement to the notes OF public utility
companies desiring loans from the War
Finance Corporation until the financial
position and earning ability OF those
companies had been Substantially in
creased. For individual Endorsement of
The notes there has now been substituted
a collective Endorsement through the
Essential Industries Finance Corporation
md at the same time the earnings and
financial position of some OF the public
Utilities have been improved. There has
also been granted by the War Finance
Corporation direct aid to the Brooklyn
Rapid Transit and marlborough Rapid
Transit companies.
While the initial capitalization Of the
new company Is 100000. It is ex-
Dected that the capital viii reach ulti-
nately $4,000, 600. on which basis II will
We able to borrow the maximum amount
Of S50o00.000 from the War Finance
Corporation. thus making available
$4,000. 900. roughly speaking, for loans
20 public utilities and other essential in
dustries. There is also hope that Con-
gress may amend the war finance act
20 as TO eliminate the provision in Sec
ZION 10 limiting loans to an Individual
bank. banker or trust company to $780,
100000. If this comes to pass. the
formation OF similar corporations In
other cities will not be necessary and
he business Of the new corporation
might expand ten or moro times above
the present, limitation. Loans by the
new company will be made to concerns
In all parts OF the country.