The Washington times., 1930-03-05
Continued from Page I.)

bEOEH u&G As<
man when creditors of Fox asked
for appointment of receivers a
month ago. It was opposed by
Halsey, Stuart & Co., bankers for
Fox for many years.
Alternate Plan
Ealsey, Stuart g. Co. has com.
pleted an alternate plan which
it declares would prove $50, 200,
900 better for the stockholders
than the Bancamerica-B -Blair-L Leh'
man plan.
Because of the Coleman ruling,
stockholders can vote only on
the Bancamerica- -Blair-L eh m a n
plan today, as that has been
approved by directors.
However, the new Halsey, Stuart
and Company plan was PIT in
circular form before the stock.
holders before the meeting, by
consent oi Judge Coleman, SO they
might understand and discuss it
before any vote was taken on the
Bancamerica plan.
This may result in stockhold.
ers deciding not to vote one way
or the other on the Bancamerica-
Blair-Lehman plan, since Judge
Coleman said if stockholders in.
dicated another plan would be
more acceptable he would with
hold appointment of receivers.
Underwrite Stock
Total compensation to be re-
ceived b the bankers under the
plan is 10 per cent Of the deben-
lures, or 100000. No bonus in
common ~tock is provided. The
common stock offering to existing
sharehol 1ers will be underwTitten
b. the bankers at $28 a share.
Fox Theaters Corporation, un-
Ger the ian, will create an issue
Of $40,000,000 Z per cent deben-
tllres to be offered to its stock
! holders ard be underwritten by
the Fox Film Corporation.
In announcing the plan, the
attorney for the trustees pointed
out that only two-thirdS of Glass
"B" stockholders will be required
to approve it, as no change is to
be made in the voting power Of
the Glass "a" shares.
Approval of the Bancamerica
financing plan requires a two
thirds vote of the combined "a"
and "B" shares. In addition to
the saving in cash and additional
4 funds provided, the trustees claim
81 their plan calls for issuance of
a 100000 less shares of common
q stock. .
Retire Debentures
ThaA point out further that
under S$Ireir plan all the deben-
lures will be retired under con-
version privileges. whereas the
Bancamerica plan will leave a
balance of $2000o,O00 outstand-
ing.
The trustees plan also saves
payment Of $1,750,000 n preferred
dividends which were arranged
for under the Bancamelica plan.
Sinking fund provision of the
trustees plan calls for setting
aside of Is per cent of net earn
ings of the film company, nor
to exceed $2,000,OO0 in any one
year.
Samuel Untermyer, counsel for
William Fox, when asked regard
ing the trustees financing plan,
stated:
1--WE have not been favored
by HalSey, Stuart and Com
pany, or their counsel. with a
copy of their plan, and there
fore have had no opportunity
to study it,"
The Halsey Stuart plan fol
lows in part:
81. Film will create an issue
of 10000, 900, principal amount,
of 1O-year 612 per cent sinking
fund convertible gold deben-
lures hereinafter called the
Film Gebentures), redHemable
at the option # Film in whole
at any time, or in part, on
any interest payment date, on
30 days notice, at their prin-
cipal amount and accrued in
terest plus a premium of 5
per cent for five years from
their date, and thereafter at
a premium of / per cent Il
per cent? less for each succeed
ing year until maturity.
Convert to Stock
"The Film debentures will be
convertible at any time after
six (6) months from the di.te
thereof and within five (5)
years after such date into class
A common stock of Film at the
rate of thirty 1907 shares OF
such class A common stock for
each one thousand ($1,OOO) dol.
lars principal amount OF Film
debentureS.
"2. The capital stock of Film
as now authorized by certificate
and amended certificates of in
corporation heretofore filed,
shall be increased so that the
authorized capital stock shall
consist of 5,OOO,O shares, divi-
ded into 4,9OO,OOO shares Of
class A common stock and 1OO,-
0e0 shares of class B common
stock.
Elect Directors
The number of directors
shall be increased from 8 to IL.
An amendment to the GER
tificste of incorporation of Film
will he nerfeCted So as to DrO.