First Out

Last April Glenn L. Martin Co., famed for its bombing planes, offered for the first time to let the public participate in its ownership by offering to sell 325,000 shares at $11.50 per share. Prime purpose was to raise cash to pay off $2,800,000 in notes due Nov. 1. President Glenn Luther Martin donated 150,000 shares of his personal holdings to the company; the balance was to come from authorized unissued stock. But the stock market slumped. The issue sold poorly, was finally withdrawn.

Unable to meet its notes, the company filed a petition with a Federal Court in Baltimore to reorganize under Section 77-B of the Bankruptcy Act. It had already secured the approval of 93.5% of the noteholders to a five-year extension, expected to receive a $1,500,000 loan from the Federal Reserve and the R F C. Last week it was announced that the court had approved the plan. That made Glenn L. Martin Co. the first major corporation to complete its reorganization since the Act was passed in June.

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