Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-05-12

The sheriff has served copies Of the at
tachment OH q number Of Wall street
brokers'
The appointment Of a receiver for the
National Cordage at a late hour last
night was the occasion for a further
break in the preferred stock this morn
ing to 10. Yesterday it closed at u
bid. Common opened at 10 to q. Five
thousand shares changed hands at this
price.
General Electric was another weak
spot and in the first few minutes Of
business the stock broke five points to
IS. The fact that certain people have
thought it necessary to issue a state
ment that the company is all right, is
viewed with suspicion in some quar-
tiers. At 1915 a. ~. the stock was sell
ing at 60.
Sugar was also attacked and broke to
7G, while Chicago Gas dropped to 60.
Manhattan sold down 5 IL to 121.
Considering the panic in the industrial
group the general list held fairly well.
Causes of Failure.
The failure of National Cordage is
attributed to several things. Matters
eliminated on Monday when the cor
poration announced that it had decided
to issue $2,5OO,OOO in preferred per
cent. cumulative stock. This Disguised
the brokers, who looked upon it as a
stock obbing scheme to raise ready
money to tide over financial differences
in which it is said to have fallen since
the stock was split in two and each
holders shares were doubled in number.
When the matter was inquired into
on Tuesday the representatives of the
company became indignant at the
doubts that the questions implied in the
stability of Cordage. Wall Street re-
garded it otherwise, however. The
bears saw splendid opportunity for a
raid, and were not slow to avail them
selves Of the chance of a lifetime. To
them the contemplated issue Of stock
was an evidence of weakness, and the
general distrust that had entered the
street at the action of the monopoly in
doubling the stock and scaling the in
tereSt made others more or less Su
ceptihle to the reports of alleged diff
cldties. The story of the break which
followed needs no repetition.
Just what condition the affairs of the
trust are in is extremely difficult to
ascertain. The total liabilities of the
company can only be inferred. A cley-
er guesser put them at just $2,5OO,OOO,
the amount of the contemplated issue
Of preferred stocks. Where the loss
will fall other than upon the stockhol-
derS cannot be definitely learned. Many
banks and banking corporations had
discounted the companys paper, and
these are not confined to the city alone.
but are spread broadcast over the
country It was rumOred in Wall street
that the firm had at least $2,OOo.OOO of
it's notes in the banks. This, however,
was denied upon the word of two
prominent firms of note brokers. Both
of these said that their company had
not been large borrowers Of money on
the market recently.
Competitors Views.
John Good, the president of the John
Good Cordage and Machine company
the Hveliest and most successful COM
pettor of the National Cordage COM
pany, said in regard to the failure of
the trust that any one knowing the
situation must have foreseen the end.
He added: 1T has been a bitter fight
but l could stand it and they could not.
OF course every one knows that could
underSell them and still make money.
The banks knew it well. While they
were paying me to keep idle it was well
enough. They could sell their paper
freely and their collateral was good in
loom But from the time l withdrew
it has been otherwise. The conflict was
much to be regretted, but [ believe it
will come out all right in the end. No
one need lose a dollar. If the Cor
dage trust creditors and John Good
should come together the matter could
be satisfactorily adjusted. 1t will
come to that / believe. 1t is all that is
left for the creditors and stockholders
to do"
When asked if it was contemplated
to reorganize the National Cordage
company, Mr.. Good said: Scarcely a
reorganization of the National. The
name has an unpleasant sound, but
something must be done to bring con-
flicting interests together"
Money Market.
Money on call stringent at II to II.
Prime mercantile paper 6 to S per
cent. Sterling exchange weak, with
actual business in bankers bills at
4.S4 1-2 to 49, for sixty days and
4 - -
rates 4S6 TO 4.S9; commercial bills
4.S3 ID to 4.S6 L. Government bonds
have been steady. State bonds have
been dull. Railroad bonds demoralized
1t is estimated that up to noon today
London'S purchase Of sureties in the
local market aggregated fully 10000
shares, consisting of ST. Paul, Louis
vile and Nashville, Wabash preferred
and other International favoriteS.
Following the announcement Of the
suspension of Ferris & kimball and a
further advance in call loans to 40
per cent stocks began to weaken once
more. Manhattan which had spurted
up to $50 ID on a rumor that the Rap
id Transit commission would modify
the terms recently offered the company
broke to 1,25. National Corlage and
General Electric fell back to 10; Sugar
20 II; Cordage to 20 II: Chicago Gas
to 90; Colorado Fuel and Iron As IS
and Quincy to sc. p
At 1:30 P. m. money got down Is to
20 and pressure against the market
was lifted.
Just previous to o'clock money on