The sun., 1893-07-09
NATIONAL C0RDAGEAFFAIRS
THE REORGANIZATION PLhN WILL
PROBABLE BE SUCCESSFUL.

| terday were tnAt tne plan lor reorGaniZ1nR the
| National Cordage Company will bo successful.
The deposits OF the stocks OF the company
with the United States Trust Company the last
few days have been very largo. and fore
| shadow deposits OF q majority OF the stock at
| the close OF business tomorrow. when tho
time for asscnting to tho plan expires. 1t was
| reported yesterday that the Reorganization n
| Committee had decided to extend the time for
| dopositing securities under the plan. but tho
committee caused n statement to be pub
| lished that there was no authority for such an
| assumption. II Is not generally known that
| II Ia tho intention OF the committee to turn
the property OF the Cordage Company over to
q new corporation. which will obtain pos
session OF the same By the closing out in legal
| form OF the claims against the concern. The
| committee has the right to do this under the
| reorganization agreement. and only those
stockholders who are parties to that agree
mont will be entitled to stock In the new COM
pany
AS n great many statements have been pub
! lished rejecting upon the company and its
| officers. many OF them unfair and others un-
| true. the President Of n prominent financial
institution. who is familiar with the affairs Of
| tho Cordage Company and intimately ac-
| quanted with its executive officers, said yes
| terday that he would like to call attention to q
few facts in their defence. especially as they
are debnrrcd by their present position from
speaking in their own behalf
"The most serious allegation that has been
| made" he said. lis that dividends have been
| paid which were not earned. The answer to
| this may be found in the report of tho Reor-
| ganization Committee in the following para
| graph:
| AS matter OF abundant precaution. how
| ever. the committee has recommcnded a re,
duction Of the book esti mate OF the value of
m nr n an n aaAfn n n
extent Of 1851 700. which represents a re.
duetion in value accrun9 since the end Of tho
| pointment of receivers.
III this deduction had not been made by
| the committee the assets of the company
would exceed its liabilities by S15.2+7,0OO
showing that the company with a Sl5,0o0.0O0
capitalization would have surplus OF S247,000
applicable to dividends. The committee states
that It did this ms matter OF abundant pre-
caution and that the reduction In the value OF
| the assets has been made 'esrecially since
the nen,p appointment OF receivers who We're APP
=" The last dividend was declared early in
April: and as no one could then foresee the
ing. as It had been doing for years, or that a
semi. panic was impending; It was justified in
both the securities and credit Of the company
would have been placed in jeopardy. md. in
ns edapse Which, a. that me Wss not
anticipated BY the directors. who believed that
eond o SO te s e te as
1T has further been lost sight Of or not gen;
81 ths sspsd
value. which, have. materially, assisted II in
purchase of these properties used up what
working capital the COMPANY originally had:
the corporation. 1t has been we'll known to
the banks and bankers through whom the com
working Capital. md long a.
mained easy those bankers were extremely
glad. glad to furnish all the working capital re-
The acquisition of the new mills largely
Of Of double " what Il was during isSi. showing
nohss sus Gns
by the eommittss % has been - =, a, accomplished By
mantied and consolidated with larger mills SO
that the company now has fewer mills than 1t
hid s S uSa IsS Sas ssd
mi mills. and tie plant q he com rany has thus
without any Increase. OF capital account.
Relative to the increas So In the common
stock the committee makes the following
The transaction Of increasing the com
Company. COM any from ten million to twenty million
dollars; has not been carried into the books OF
in the book viii be
'h9Tn Hbjs increase in the capital stock was on,,
made in the early part OF this year. and al |
though voted on and entered on the minutes.
had not heen put into the books Of account be- |
pated and such entries are very easily made |
from the records and do not affect the ordi-
The assets upon which this stock was based |
as to and hs sS @ ns"das Sos. Of hf
Security Corporation. The value OF these |
Stock List. and the increased stock was listed |
on the strength OF them.
crease. and the dividend on 1t was reduced
tisins t to the public that the Increase was not
founded upon cash nssets to that extent The
ysrons counsel of % Rieh Standing % "ppfJ and the act
s$s +: s.ss ss ss SsHs
more 1t should be stated in their favor that
the company In strong and independent po.
sition from mar, manufacturing, , point Of view;
they have refused to. accept any salaries. as
stated by the Reorganization Com mittees re-
From the foregoing It may Justly be
claimed that the DIRECTORS have worked hard
ths no ,GF hsye d
the capitHl @ and Therefore must . nay: nay been
tribution than ever before. and the only trouble
the company has encountered has been its In;
ability to borrow its renuirements, as 1t had
hitherto done on account OF tho unusual
financial strinEency
every st9ckh2ldsr 10 suhscribe Tor the new
Stockholders will then hold the stock OF new
ssps T na s
timas Of financial EtrnUpncy, IL has bean.