The sun., 1919-07-12
FORD MOTOR GETS
$75,OOO,OOO LOAN
Chase Securities Corporation
Heads Syndicate Granting
the Credit.
FINANCING COVERS YEAR
Money to Buy Minority Stock
Except That Owned by
James Cousens.
FINANCING COVERS YEAR

That the Ford Motor Company has
come to Wall Street for financial as
sistance for the first time In the fifteen
years of its existence was made known
yesterday when q statement issued by
the Chase Securities Corporation an
nounced that 1t was q member Of q
syndicate which would finance O s7s,-
100000 credit OF q year for the Ford
company. Other members of the syn
dictate. as 30 far announced. are the
Old Colony Trust Company and Bond
q Goodwin OF Boston. The money ID
to be used by the company for the pur-
chase OF It's outstanding minority stock,
thus leaving its entire outstanding capi-
tai stock In the hands OF the Ford
family. One exception 10 made. James
Cousens will retain his stock and con-
tnue as director of the company.
No statement was forthcoming nor could
any Information as to the amount Of
STOCK 1t Is contemplated to purchase or
Of the price to be paid be obtained.
The financing Is to take the form Of
ninety day notes. renewable three times.
and extending the period of the financing
over a year. The Chase Securities
Corporation. Old Colony Trust Com
pany and Bond a Goodwin" Gays the
statement have undertaken to arrange
syndicate to finance q s76.ooo.o 900 one
year credit for the Ford Motor compsnv
OF Detroit. The obligation is evidenced
by the company's promissory notes. ma
turing In ninety days. with three re-
newais and they are to be discounted
at the prevailing market rate for COM
mercial borrowings. the FIRST notes be-
ing discounted at 5k per cent. The com.
pany reserves the privilege of anticipat-
ing payment against this credit on any
maturity date. The company mas here.
tofore never borrowed. This financing
Is done for the purpose of ACQUIRING
minority stocki'
another statement from Edsel Ford
son OF Henry Ford and president OF the
company. setting forth the reasons for
.ne nnanclng. accompanied the announce
ment given out by the Chase Securities
Company. "Edsel Ford" this statement
SAID president of the Ford Motor Com
pany. announces to-day that the COM
pany has completed ARRANGEMENTS
through Stuart w. Webb of Bond A
Goodwin and F. s. Holmes for the Old
Colony Trust Company of Boston. to pur-
chase all OF the stock Of the minority in
terests In the Ford Motor Company ex-
cept that or James Cousens. who Is TO
remain as a director Of the company
ing interest took no part In the nego-
uations. but consented to and approved
the purchase. The purchase Is made for
the purpose of reorganization, although
there Is not to be any change in the per-
sonnet OF the officers or In the policy of
the company at this time"
Wall Street was very much Interested
IN the announcement, inasmuch as the
company has never before done any
financing In this district. There was a
great deal Of comment on the Street
about the very unusual procedure of a
corporation borrowing money to pur-
chase Its own stock. but at the Chase
Securities Corporation no information
other than the two statements given out
In the morning was obtainable. It was
declared that the corporation knew moth
ing about the plans OF the Ford company
or the reasons for the step. and that the
Chase corporation was concerned only in
handling the credit in New York
Those persons who have been led to
believe that General Motors Corporation
would take over the Ford organization
were somewhat disappointed at the an
nouncement. believing that 1t put an end
to whatever dream the General Motors
Corporation may have had for owner
ship Of the Ford outfit. II has been
reported that General Motors was ne
gotiating with the Ford interests for
the purchase Of the latter plants. Tho
reports have been denied repeatedly by
William C. Durant, president of Gem
eral Motors but they have required with
such persistence and frequency that
many were inclined TO credit them de-
spite the denials. One of the latest re-
ports was that a stan Of sixty expert
accountants had gone to Detroit, where
they were to go over all Of the books
and records of the Ford company to
furnish data on which negotiations by
the General Motors Corporation could
be based. No denial of that report was
made so far as Is known.
The Esd Motor Company was incor-
porated in 1908 in Michigan to manufac-
ture and sell automobiles. It's main plant
was at Detroit, with many branch Of
fees, assembling plants and wholesale
branches in principal cities. The total
authorized and outstanding capital stock
was 100000 in shares of 800 par
value. The amount OF dividends paid
on the stock has not been made public,
as they are with a large number OF cor
porations.