New-York tribune., 1918-09-24
$7o,ooo,0oo Made
Available for
Public Utilities
Thayer Chosen President
of Essential Industries
Finance Corporation

The formation Of an intermediary
corporation to negotiate with the War
Finance Corporation loans for the BEN
fit Of public utility companies and
industries essential to the war was
formally announced yesterday. The
new company, known AS the Essential
Industries Finance Corporation. will
+ have an initial capital of $3,OO0,0O0,
represented by 100000 ten year de-
bcntures, $1,0oO,00O stock and 100000
padin surplus.
The company, according to the pres
ont plans, will have a capitalization Of
$20,000,000, on which basis it will be
able to borrow $5O.O00,00O from the
War Finance Corporation and make
available $70,000,0OO for loans. Fur
ther expansion is likely to take place
in the event that the section in the
war finance act, limiting loans to
individual banks or trust companies
TO $50,0o0,00o is amended
Thaycr Heads Officers
+. Y. r. Thaycr, president of the
Chase National Bank, will act as presi-
dent of the company and Frederick
Strauss, of J. & W. Scligman & Co..
and G. NJ Dahl. vice president of the
Chase bank, will be vicc-presidents.
The capital stock is divided between
S2oo,O0o "A' common stock and $780,
600 "B' common stock, the latter being
subscribed by the participating insti-
tutions at 125. The "a" stock, whose
dividends will be limited, was sold at
par
The interests which will be repre-
sented on the board of directors are
the Chase Securities Company, the
Guaranty Trust Company, the Central
Union Trust Company. the First Ma
tlonal Bank, J. p. Morgan e. Co., j. g.
". Seligman & Co.. E. W. Clark & Co.,
OF Philadelphia. the General Electric
Company, the Westinghouse Electric
and Manufacturing Company and the
United Gas improvement Company, Of
Philadelphia.
at is intendcd,' said the official an
nounccment Of, the organizers, "that
the Essential Industries Finance Cor
poration. as loans are made bv it to
public utilities and other industries
essential to the war, shall avail itself
81 the provisions OF the war finance
act by borrowing money from the War
rlnancc Corporation. experimenting
the notes and securities received by il
III respect Of advances made. 1t is
also the intention that the capital oe
the Essential Industries Finance Cor
poration shall be increased from time
to tune as the business OF the company
expands. The capital in all reliability
Will ultimately reach so 900 ,00p. on
which basis ii will he able to borrow
about $40 900. 900 from the War Finance
Corporation. thus making available
S1o,ooo,ooo for loans TO public utilities
aud other essential industries. If
Congress should amend the war f.
nance act so as to do away with the
TO any one individual bank. banker or
trust company to $50, 600 ,o0o the bust
ness Of the Essential Industries FL
nance Corporation may ultimately
reach or even exceed the amount con-
tcmplated by the committee appointed
by Governor Harding Of the Federal
Reserve Board some months ago to
suggest plans for aiding public utli-
tics. 1t will be remembered that the
committee 2t that time contemplated
thc formation of a company with a
capital Of $l0o. .0o0, 900, which in turn
could borrow $300,0oo,0 geo additional,
making a total Of s4o0,o00,o0o which
would have been available for the
purpose.
Moderate Start
"ln organizing this Company it has
been thought best 10 begin in a COM
naratvely small way and then with
increase Of business to increase the
capital from time to time until the
limit feasible under the war finance
act is reached"
.