Goodyear

Bickering stockholders and creditors of Goodyear Tire & Rubber Co. barkened to the counsel of Owen D. Young and last week agreed to cease their years of quarrels and lawsuits.

In 1920 the company, under the presidency of its founder Frank A. Seiberling, was practically bankrupt. Dillon, Read & Co., who worked out the refinancing plans, had President Seiberling removed and the company placed under a management committee. This committee consisted of Clarence Dillon of Dillon, Read & Co., John Sherwin of the Union Trust Co., Cleveland, and Mr. Young. Mr. Young has been inactive as a manager, in reserve as counsellor.

Under the management committee Goodyear Tire & Rubber Co. soon began to make profits. It is the largest company in the industry. But ordinary Goodyear stockholders received no share of the profits. The money went to pay interest on bonds and other new indebtedness incurred by the Dillon, Read refinancing. The management committee, particularly Mr. Dillon and Mr. Sherwin, were mismanaging, cried stockholders.

Mr. Young's Goodyear pacification plan of last week provides for 1) a new board of directors to represent all factors in the company's finances; 2) a 160,000,000 first mortgage bond issue to replace the previous refinancing mortgages and save the company $1,100,000 yearly in interest; 3) Paul W. Litchfield to continue as president. Mr. Litchfield was long Mr. Seiberling's vice president. Edward G. Wilmer, who now functions as Dillon, Read's president of Dodge Bros, (motor cars, Graham Bros, trucks), was the management committee's first successor to onetime President Seiberling.