New-York tribune., 1921-04-21
Goodyear Company
In New Hands i'm
Big REIMBURSEMENT
Dillon, Sherwin and Young
Take Control; New Financ-
ing Agreed Upon; Firm
Saved From Receivership

With the completion yesterday of the
final details in the drastic capital read
justment Of the Goodyear Tire and
Rubber Company in the organization
of syndicate to underwrito the offer
ing of bonds under the plan, formal
announcement was made that control
Of the management Of the company
through the right to elect the majority
Of the board of directors has passed
into the hands Of Clarence Dillon, of
Dillon, Read & Co.; John Sherwin,
chairman of the board of the Union
Trust Company, of Cleveland, and
Owen ID. Young, vice e-president of the
General Electric COMPANY.
Important changes are to be made at
once in the personnel of the manage
ment as at present constituted, and 1t
is expected that F. A. Seiberling will
retire as president of the company.
His successor, it Is understood, will be
selected shortly by the new interests
in charge of the affairs Of the Goodyear
company.
Public Offering Of an issue of $780,
100000 twenty-year 8 per cent first
mortgage bonds of the company, issued
under the reorganization, is being made
at 80 by a syndicate consisting Of Dill
Ion, Read & Co.; Goldman, Sachs &
CO.; National City Company; Guaranty
Company, Lee, Higginson & Co.; the
Chase Securities Corporation and Blair
e. Co., Inc. The bonds are calable at
120 and there is sinking fund arrange
ment providing for the retirement of
the bonds at this figure through the
drawing of s750,O0O on each interest
date, beginning November 1, 1921. The
mortgage provides that the company
nl4 -,
assets equal to 125 per cent of the
bonds outstanding.
An issue Of $27,500,000 Of ten-year
per cent debentures, also authorized
under the reorganization, Is to be Of
fered shortly to the stockholders of
the Goodyear Company for subscription
by syndicate consisting of Blair &
Co., Inc; Dillon, Read G. Co.; the Con-
tinental & Commercial National Bank
of Chicago, the Girard National Bank
of Philadelphia, Hallgarten & Co the
Mellon National Bank of Pittsburgh;
the Union Trust Company of Cleve-
Of Boston, the Bank of California, San
Francisco, and A. G. Becker & Co.,
Chicago.
OF an authorized issue Of s40,000,000
new prior preference stock approx
mately $30,000,O00 has been issued to
the merchandise creditors Of the COM
pany in settlement of their claims. All
inventories have been cut drastically,
and according to the formal announce
melt, crude rubber in hand and to be
received under contract will be carried
at 20 cents a pound and fabric at pres
ent market value.
Net tangible assets of the company
on the basis of the reorganization are
estimated at $135,000, 600 and net quick
assets $63 100000, while a provision of
nearly S43, 100000 has been made for
adjustment of inventories and raw ma
terials.
The present s65,ooO,o 900 of preferred
stock stands unchanged in the read
justment, while the holders Of the pres
ent common stock are to exchange
their holdings for new stock of no par
value, of which approximately 100000
shares will be issued under the plan.
The Company estimates that net in
come for interest and taxes for the
twelve months to February 2S, 1922, will
be approximately s10,6Oo,OO0 The bal
ance sheet as Of February 28, 1921,
gives effect to the losses from opera
tions during the period from October
81, 1920, to February %, 1921, together
with the adjustment Of Inventories and
provisions against possible losses on
raw materials under contract.
AS a result Of the sale of the $780,
100000 Of first mortgage bonds, funds
are provided with which to pay off ap
proximately s18,O00,ooO in bank loans
of the company, leaving about S12,000,-
coo in cash for the company's treasury.
The reorganization provides for the
payment of all of the company's obli-
cations, which ct their peak amounted
IN nora than S1OO O0O 600 If WAS nOirt-
ed out yesterday that in efecting the
reorganization assents of more than
e5,o0O security holders had to be OBJ
tanned, as we'll as the assents Of more
than thousand creditors of the com
pany.
The success of the reorganization
saves the Goodyear Company from re-
ceivership, which was threatened as a
result Of it's inability to meet it's debts.