St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-10-14
Capital Stock, = SIS, 900, 600

sent Of holders Of record of at least
eighty per cent go per cent OF the
preferred stock. is prohibited by
bylaw.
The Preferred Stock is entitled to prefer
entail cumulative dividend OF 8 PER
GENT per annum, accruing from Nov. i,
1890. and payable out of the net earnings of
the Company before any dividends are paid
upon the Common Stock, and the Preferred
Stock will also have priority over the Com
mon Stock in respect of all property and
assets OF the Company, i'll case OF liquidation
or dissolution.
The two classes of stock have the same
Voting power per share.
Preferred dividends will be pay.
able quarterly on the first days of
November. February, May. ana Au.
books will close fifteen days prior
TO the date of payment.
Both classes of stock will he registered at
the office of the Farmers Loan and Trust
Company of New York, and application will
be made to list them on the New York, Bos-
ton. and Chicago Stock Exchanges.
After the. payment OF 8 per cent cumu-
lative on the Preferred Stock and 2 per
cent non-cumulative on the Common Stock,
and the reservation of such surplus as may
be determined by the Board Of Directors of
The Company, any furthur dividends Will be
divided pro rata between the two classes.
The organization of the Company and the
legal validity OF the Preferred Stock issue
now offered have been submitted by the
Bankers to their counsel respectively, and
approved, as will appear from the following
opinions:
OPINIONS OF COUNSEL.
DRExEL BUILDING, New YORK. Oct. 8, 1899.
To Mes>rs. AUGUST BELMONT q CO.:
We have, as requested by you, examined
the organization of The National Cordage
Company and its issue of Preferred Stock. 1t
is our opinion that the organization is regu-
lar and the stock issue valid, and that the
holders Of said stock will be legally secured
in the rights and immunities set forth in
your Prospectus Of this date.
LOWREY, STONE & AUERBACH.
sd WALL ST., New YoRR, Oct. 8, 1890.
Messrs VEkMILYE q CO.:
GENTLEMEN: We have investigated the Or
ganization Of The National COrdage Com
pany and the proceedings attending its issue
Of Preferred stock.
We advise you that the organization of the
Company and The issue of Preferred Stock
are Valid in law, and that the holders of such
stock will be entitled 10 the privileges and
immunities stated in the Prospectus. Very
truly,
BUTLER, STILLMAN & HUBBARD,
PROSPECTUS.
THE NATIONAL CORDAGE COMPANY
is corporation organized under the laws of
the State of New Jersey for the Importation
of hemp and the manufacture and sale of
cordage.
This industry is STAPLE and enc of the old
est i'll the United States; the volume of the
{ business has increased rapidly during the
past twenty years, and under the present
plan of operations should be capable of still
more profitable expansion, whit furnishing
as cheap II not cheaper product to the con-
sumner.
The Company, IN addition to it's large
working capital. has contracts for the fee of
the following manufacturing properties,
which are now under lease to it, free of
mortgage or other incunbrance:
L. WATERBURY, q CO., Brooklyn, N. Y.
1 A III,
ELlZABETHPORT CORDAGE CO.,
Elizabethpoft, n. J.
THE TUCKER & CARTER CORDAGE CO,
Brooklyn. n. Y.
XENIA TWlNE AND CoRDAGE Co,
Xenia, Ohio.
AKRON TWINE AND CORDAGE CO.,
In addition to which the Company CON
trolls the manufacturing properties of the
VICTORIA COkDA1E o., Dayton, Ky.
Fl R. LEW is & CO.. Philadelphia. Penn.
BAUMGARDNER,W WOODWARD u CO,
NEW YORK coRDAGE COMPANY.
ATLAS coRDAGE COMPANY.
New Orleans, La.
Many of these concerns have been in bust
ness for half a century, ard are well known
to the business community of this and other
cities.
The proceeds of the Preferred Stock will
be paid over to the Company, to be applied
by il TO the consummation of these several
contracts. and 10 other purposes determined
by the corporation.
With the exception of the four manufact-
urlng properties last mentioned the
former managers or proprietors Of the sew
erai concerns are under contracts with the
Company for long terms to run the respect
i've mills under system of competitive bids,
fhn rpa o. hQi fury fSha hxyf In
Company and awards being made to the low
est bidders. The contractors, whether sue
cessful or unsuccessful in bidding, are
under Obligation by the same contracts to
maintain the mills at their own expense in
a fit state of efficiency for the next annual
competitive bid. in which they are obliged
to take part. The Company is thus under no
expense for idle mills. while the skill of the
business is retaiued. All the economies of
consolidation are secured by this plan of Or
ganization as we'll as the wholesome effect
of free and keen competition among the
manufacturers, resulting in lower prices to
the public without decreasing the profit to
the company.
The Company buys a very large percentage
of all the finre used in this country for cord
age and binder Irvine. On this account it
world for fibre, and the size of its contracts
with the producing countries enables the
Company to obtain correspondingly favora-
BILE prices.
l. c SOu pauy has III aCQltlOD OLHer Vdlud-
BILE contracts and concessions.
A Committee. composed of the President,
the Secre tary. and three Directors of the
Company, has during August of this year in
ventoried the assets of the Company and re-
ported to the stockholders that the value Of
the assets. exclusive of the proceeds of the
Sc, 900, coo Preferred Stock to be issued, is
$4,000 600 and upwards, over and above
all liabilities.
AffidasHs OF the foregoing Committee, sub
mitted to the bankers, and which are salts
factory TO them, are the basis for the essen
tial statements OF facts herein concerning
the character and volume of business of the
corporation. its assets and methods of oper-
atoms; and. in the opinion of the under
signed, fully justify these statements and the
conclusions drawn from them. The aft.
dav1ts further show that the an.
nual aggregate profits of the sew.
eral concerns for the past ten years
have been more than enough to pay
the annual dividend on the Pre-.
ferred Stock and leave a very large
surplus. nOtWithSt standing the fact
that during some of that period
the interests now consolidated
were in competition of a character
now avoided.
The Committee further certifes
twenty-five years have the aggre.
gate annual profits of the several
concerns been insufficient to pay
the per cent dividend on the Pre-.
sumption of cordage at the begin
ming of that period was only one.
quarter what 1t is to-day.
The Common Stock remains in the posses
sion of those interested in the property and
management.
By direction and on behalf of the corpora
ton we invite subscriptions to the above
mentioned Preferred Stock AT PAR, paya-
bic as follows:
PER CENT ON APPLICATION.
25 PER CENT ON ALLOTMENT.
Sc PER CENT ON NOVEMBER 3.
sfS PER CENT ON NOVEMBER II.
Allottees will have the option of paying In
full on allotment, and interest on the antlci
pated payment will be allowed at the rate Of
per cent per annum.
Ii Temporary receipts will be gwen by the
Bankers for installments as paid, exchange
able into preferred stock on November liz