The New York herald., 1921-04-21
GOODYEAR BONDS
OFFERED TO-DAY
Bankers to Float S30,000,000
and Others to Underwrite
S27,500.000 Debentures.

The final step in restoring the Good
year Tire and Rubber Company TO a
sound financial position with read
justed management under the direction
of three voting trustees will be taken
to-day. when a group of bankers will
offer $4,000 600 Of the company's first
mortgage twenty year s per cent. sink
ing fund gold bonds at SO and interest
to yield about sos per cent, and another
group Will underwrite an issue OF s27,-
500 900 Of its ten year per cent. deben-
lures, which are 70 be offered to its
stockholders for subscription.
The banking group which offers the
first mortgage bonds will be headed by
the following Dillon, Read & Co. Gold
man. Sachs & Co. the National City Com
pany, Lee, Higginson & Co, the Guar
anty Company of New York. the Chase
Securities Corporation and Blair & Co.
The underwriters of the debentures,
which are 10 be offered to the share
holders in about a week, include the fol-
lowing The National City Bank, the
Irvirs National Bank, the Bank OF
Manhattan Company, Blair & Co, Dillon,
Read & Co, the Continental and Com
mercial Trust and Savings Bank Of Chi
cago the Girard National Bank Of Phila-
delphia, HallEarten & Co. the Mellon
Trust Company Of Cleveland, the Old
Colony Trust Company of Boston, the
Bank OF California OF san FRANCISCO
and A. G.. Becker & Co. OF Chicago.
To consummate this recapitaliza ton
took months OF effort, more than 100000
individual consents being required be-
fore it could be put through. Consents
were given by holders OF s65. 900. 900 of
the company's preferred stock. $50, ,000.-
900 OF its common stock and of SS5,-
100000 Of It's debt, including contracts
and contingent liabilities. To insure a
strong management the company Is to
be controlled during the life OF the
bonds through management stock held
by Clarence Dillon of Dillon. Read 6.
Co. John Sherwin, chairman of the board
OF directors OF the Union Trust Company
Of Cleveland, and Owen ID. Young. vice
president Of the General Electric Com
pany. Those men will name a majority
of a new board of directors OF the COM
pany, which. il is anticipated, will make
changes and establishments among its
executives.
Under the recapitalization the $685.
100000 OF the companys old preferred
stock remains unaffected. There are
authorized s40.0o0000 of its prior pref
erence stock of which about $50 900, 900
pctI tdhtll DN lIltTtildHulsC CTtulIoTS.
There will be outstanding about 900 900
shares OF its common stock OF no par
value carried on the books at s1.000.000.
Giving effect to the new financing the
company will have as OF May ] total
resources OF 1000. 900 total prop
erty value, less 81. 1000 depreciation.
amounting TO s54. 100000 current as
sets. S72.700 600. OF which s11,0o0.000
Is cash: total current liabilities So
100000, and working capital in excess of
S65.000.000. Reserves of s14.0oo,000 are
set up and all inventories of raw mate
rials as we'll as all contracts have been
written down to the present market. In
addition a total of s43.000,000 has been
provided for adjustment OF inventories
and raw materials not delivered.
The new issue Of first mortgage bonds
is closed at 30,o00.00o and the mort
gage provides sinking fund to retire
s750.000 par value every six months. be-
ginning on November !. 1921. by draw
ing by lot at 120 and interest. thus re-
firing the issue by maturity at pre-
MUM OF 20 per cent. All bonds re-
deemed by the sinking fund will be can
celled and cannot be reissued.