New Fisk by Levy

When a company shows two consecutive deficits of $45 and $38 on its first preferred stock, it is about time for that company to retire. Fisk Rubber Co. bondholders had some such idea in January 1931, when they threw the company into receivership after it failed to pay off an $8,000,000 note. Most people thought the last had been heard of Fisk.

Liquidation seemed likely, perhaps an auction of the properties. From posters at hairpin curves and blind bridges no more would Fisk's stocky little boy, ready for bed, candle in hand, peer down the dull macadam way with his grinning advice.

Promised last week was a very different outcome when a reorganization plan was proposed that had the backing of big creditors. Sweeping the old cluttered capitalization right off the books, the new plan gave both bondholders and stockholders a chance to come into the new company, though the terms precluded any chance of investors recovering 100 cents on the dollar. Fifteen million dollars of 7% preferred and a million shares of common will take the place of bonds, notes, bank loans. The plan is the result of almost a year's study by Edward Dailey Levy, president of the new company, whose experience has ranged from western railroading to the Emergency Fleet Corp. and on to Paraguay where he rejuvenated a decrepit tanning extract business.

Mr. Levy did his work on Fisk for Richard H. Swartwout, chairman of the new board, who once described himself as a "selector of presidents." During his investment banking days he helped reorganize many a defunct or tottering enterprise: Union Bag & Paper Corp., American-La France Fire Engine Co., Norfolk Southern Railroad, Intertype Corp., Dictaphone Corp., Ansco Photo-products, Inc. Twice he and his friends had working control of Missouri-Kansas-Texas Railroad, sold out both times at a profit. Backer Swartwout said Fisk's plans for a new selling campaign would not be ready for several months.

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