The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-11-22
CORDAGE REORGANIZATION.
CREDITORS AND srOcKHoLDERs lP.
PRIsED or THE NEW PLAN.

| Twenty.avs Per cent. or the Unsecur.a
Debt 60 ne Pnid In Cash, sixty-ave Per
cent. IN Bonds OF New Company,
rnd Ten Per Cent. Lett Contingent
The reorganization committee OF the Ma
tlonal CordaRe Company Issued two circulars
yesterday. one 10 the creditors and another
TO the stockholders Of the bankrupt CORPORA
ton. Various changes in the com pllcated af-
fairs Of the Cordage Company which have
taken place since June 81. the date Of the
committees first circular to security holders
| and creditors. prevent the execution OF tho
| plan Of reorganization then proposed
| Those changes we're brought about BY the
panic and consist chiefly OF a shnkage in the
| value OF the assets Of the company and an In
crease 10 the amount OF It's losses owing to the
| embarrassment OF many OF Its patrona These
causes have increased the total liabilities BY
! s1.0Oa.374. making the am cunt too large to be
paid In bonds at 80. az originally proposed
The committee therefore proposes n modi-
fed plan Of settlement with the company's
crcdltora II is now proposed to pay rs per
cent OF the unsecured debt In cash By Jan. n
OF the remainder SO per cent. Is to be paid in
bonds at par OF q successor company, to be
known as the United States Cordage Company
These bonds are part OF an authorized issue OF
$L5OOOU0 Of thirty-ycar per cent. gold
bonds. which It is proposed the successor
company shall Issue.
The remaining 10 per cent Of the face OF the
total unsecured debt, or $3.50. 5Sl. IL to be set
tied In trust li1uldated certificates. secured by
a pledge OF all accounts receivable and other
assets OF the National Cordago Company that
remain after providing for the payment OF 25
per cent In cash.
The bills receivable. which are not immedl-
atey available. are described as SLOW. but
considered good" $l.111.702. and SLOW and
DOUBTFUL" of the face valuo OF :, S51, O7G, but
pIobably good for $6OO.OVO total Of 81 ILL.,
The committee has arranged with the mn
jority In amount OF the secured creditors. and
disc collateral. through the United States |
and their acceptance Of payment Tor their de-. |
flqiency II any. in trust liquidation certificates
ceptance OF this proposition as It il the best |
settlement which the condition OF the com |
pa1y permits. The ADVISORY Committee makes
cevets. All three represent the creditors OF |
the concern rather than the .tockho!ders
controlled by the Security Corporation Is set
forth nnd i Il MIL HS}Hire absolute
first, the new company Is to issue $4,000. 900
Of gnSra nteed preferred stock 70 take, up
s sbou pS Hens which
'S %Sc sssts spTsd at
tagos OF the deal with the Security Corpora
fact that the holders OF Security Corporation
bonds have stipulated that bonds OF tho new
company shall not be be issusd to the credi-
tore at less than par. and that the entire Issue
shall not exceed SI.5OO.OOn The cash pay
ments made by the stockholders OF the present
company aggregate S2.IOO.UOO. and this
amount will To further increased to about
50 OOuOOO in due time. All Of it wilt be used
as working capital for the new company
When the reorganization is completed the
new com pany Will own or control between tH
and 40 per cent. OF the manufacturing cana
city OF all the mills In the United states These
assets have been appraised as 10 their value at
50, $4,000 to S2SOu0ooo by Mossra J.. NJ.
f9aIton' W Ii!iam Marshall; and W, u. sewell.
will include Mossrs. George C. Ma
goun. Ernst Thalman. and Gustav II. Cos
I'm; also the Advisory Committee. consist
ing OF George, q. Williams. President
Coe. President of the, American TX
President Of the Bank OF Commerce. and L. T.
|, Young. one OF the receivers. Ii Is conf
IDENTIFY expected that .ho reorganization can
be completed before the end Of the year