Word: tew
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Last year after Depression deficits of $21,000,000 had frayed the fiscal treads of B. F. Goodrich Co., its president, James Dinsmore Tew, decided it was time for the rubber firm to get a new set of financial tires. He asked his stockholders to approve a new $45,000,000 first mortgage of which $28,000,000 was to be raised immediately. Of this sum $6,000,000 was for working capital to finance increasing business and $22,000,000 was to reduce interest charges by retiring 5 ½%, 6 ½% and 7% obligations of Goodrich and its subsidiary...
Last week publicity-hating President Tew was chagrinned to find his name very much in the news. Two months ago he asked Goodrich stockholders to authorize a $45,000,000 first mortgage, of which $28,000,000 was to be raised immediately, the rest at some indefinite future date. The purpose of the issue was to retire at a cost of $22,000,000 all of Goodrich's 67? bonds and all of the 5½% and 7% notes of Hood Rubber Co., a Watertown, Mass, subsidiary which manufactures Goodrich footwear as well as products under its own name...
Otis & Co. marched into an Akron court and, by virtue of owning ten shares of Goodrich stock, got permission to inspect the books of Mr. Tew's company. Then it began rounding up proxies to try to prevent approval of the new first mortgage at a special stockholders' meeting...
...several days President Tew kept silent. Then he gave stockholders an explanatory statement which cut considerable ground from under the Otis complaints. Reiterating that "it was in the best interest of the company not to deal with Otis & Co. as an underwriter," he outlined the benefits of the new first mortgage as follows: 1) Its interest rate is lower than the coupons of any of the bonds and notes it replaces; therefore a considerable interest saving would be effected. 2) Goodrich's reason for refunding the Hood Rubber notes, due in 1936 anyway, is to protect its investment...
...Goodrich has paid no dividends for a number of years, although it is currently operating in the black, Otis & Co. was confident of securing the proxies of enough disgruntled shareholders to block the plan. After two recesses had been called, the results of the vote were announced by President Tew: Goodrich had received 74% of the proxies- 1% short of the necessary number. President Tew was not the least disheartened. Repeating that the "Otis opposition arose only after the Otis corporation had first sought and been denied a position as underwriter," he urged stockholders who had not voted to send...