Evening journal., 1922-01-28
COL. GRAPH CO.
TO PAY INTEREST
February l Payments on
Notes to be Made at
Bank
TRY TO WORK OUT
ADJUSTMENT PLAN

NEW YORK. Jan. 2S-Payment
OF February interest on the s6,-
100000 of outstanding 5-year 8 per
cent notes OF the Columbia GRAPHIC
phone Manufacturing Company, was
offered yesterday to holders who de-
posit their notes on or before Feb
ruary Is, 1922. with the Guaranty
Trust Company of New York.
The announcement was made by
a committee. headed by Harold
Stanley, president OF the Guaranty
Company of New York. which has
aen. appointed to represent the
note holders in working out a plan
with the bank and merchandise.
creditors to readjust the company's
Indebtedness
The 8 per cent. notes rose five
points to sSh yesterday on reports
OF the arrangement The common
stock advanced 1% to 2N and the
preferred SIS to 12A points.
BALTIMORE, Nd, Jan. 2S-Early
rehabilitation Of the finances OF the
Columbia Graphophone Manufactur-
ing Company is regarded is almost
certainty by local bankers in touch
with the negotiations which have
been going on for several weeks in
New York looking to that end.
Local bankers are interested in the
proposed readjustment of the COM
ceivership. which would automati-
cally cancel the lease held by the
company on the Colombia Graphic
phone Factories Corporation plant
here. Under the terms OF this lease
the leasing corporation is bound to
pay for term OF 25 years all taxes.
insurance, maintenance charges and
in addition is obliged to pay rental
sufficient to cover the interest and
principal OF the Factories Corpora
tion bonds as they mature, as well as
dividends on and provide the sinking
fund for the preferred stock. These
charges come ahead OF the leasing
company's own stock
Thus far the leasing company has
met all these obligations. amounting
close to $500, 900 a year. Reports
from New York yesterday that ten
tative plan for rehabilitating the
leasing company were said to be
somewhat premature by local bank
ers. Committees are still working
on the details and it may be sew
eral days before a final outline car
be given. they said. They were. how
ever, very optimistic as 10 a success
ful outcome OF these committees ef.
forts. as all interests are working IT
harmony to the same end.
IL was said yesterday that arrange
ments have been made for the pay.
ment OF the interest due on the So
5000 five-year per cent. notes
which falls due February /. and bank
loans aggregating. II is understood
about s13,000,0OO have been ex-
tended to April. Among the tenta-
tive proposals advanced is one thai
provides for reduction OF the
number OF shares OF stock to about
half, but this would not disturb the
equities Of shareholders. It is IN.
derstood that the bank creditors are
to be asked 10 accept for their claim,
long-term obligations bearing no in.
terest for a period OF years and thai
this proposal has been we'll receiv.
ed. All interests are impressed with
the fact that a receivership would
destroy the valuable sales organiza
tion which the company has built up
both in this country and abroad
and for this reason. It is believed
are all willing 10 make concessions
AS between the local corporation
and the leasing company there Is II
contention claim OF something lik,
s2'o0O,o0o, which the leasing com
pany spent in the completion OF the
local plant and which II is asking bs
secured 20 II by securitiss Of tn,
local concern. This contention Il
understood to be also in a fair wa,
OF adjustment.