New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-05
CORDAGE PEOPLES PLIGHT.
Continued from Firsf Page.
,r. the treasurer. lives at the Plaza Hotel and

Loper, the treasurer. lives at the Plaza Hotel and
is member Of the Union League, New o'k
Calumet and New-NOrk Yacht clubs. John G.
Furman. one of the directors. is brother law
of James NJ Waterbury. Charles l. cibury
the counsel of the company, is a member OF one
of the best known law firms III the city, IL will
Ike seen that the d" Cordagc people, as they were
called collectively IN the Street. enjoyed wealth
and social standing. besides the prestige OF busi
Ii was impossible TO ascertain any facts as to
the actual financial condition OF the National
COrdase COMPANY. II Is ssid by weitlniormed
are in the dark. The operations OF the company
have been conducted on large scale, and lis
plants are widely distributed through the country
Necessarily IL has been forced at times to bc
heavy borrower Of money. and the accounts
reputed to have fallen into such condition OF
confusion, especially since the development of
monetary stlingCncy this spring, that receiver
ship was considered to be the most equitable form
in which 10 place the property for the protection
Of stockholders ami all interests concerned II
h not known when the directors first discovered
1he tangled condition of the companys accounts.
does any suspicion of irrcgulanty attach 70 the
situation. Whether the managers have followed
any policy of endeavOring to protect the credit OF
the company through the medium of Stock En-
change operations il is impossible TO say II is
known, however, that the principal directors
have had large private accounts on the bull side
in the market, and the shrinkage OF values mat
has been in progress since March is believed to
have inflicted important losses upon individual
members Of the board. Cnquesfionably con,
siderable part OF the losses have represented
merely the wiping out of paper profits, but
Wall Street believes that ii Is incredible that the
failure of the brokers acting in the Cordage
interests would have been permitted II some OF
the losses had not been actual ana heavy
PAPER IN NETWORK AND NEW ENGLAND BANKS
The Cordage Company recently has placed
GREAT deal of its paper among the banks of New
York City and of England. This paper was
called bills receivable but 1t consisted OF OBJ
legations of the different corporations united under
the control of the National Cordaee COMPANY ana
indorsed by the latter Some conservative bank
ers said Yesterday that these blls receiVaole
were practically singlc-name paper Note-nrokcrs
and money-brokers who have been oolng n nue., oa
the business of the Cordage Company salu tnat up
to within the last few weeks the company hau o,eh
more of a lender than borrower OF money Ke-
Gently however, the company had been Tree
borrower of funds although it had always met its
obligations as they came due. one well-knoWn
money-troker said that only Yesterday morning ne
had received check LOT IarRe amount W "'o'
The announcement made last SATURDAY. that
the directors lad decided To increase Ihe amount
of preferred stock by S2.50O,OOo Tor tne purpose
of providing working capital took wall street
by surprise The doubling of the capital stock
early in the year bad been excused on 'ne Sroun"
of necessity TO conceal the immense proltS OF the
combination. Statements were made that 'he
company had enough money IN the treasury fi 10
meet its dividends for year to come. he resort
10 a proposed sale of new preferred STOCK, winch
was to be offered to stockholders for subscIlp-
ton at par was the first lntnatioh WHICH, t to
Street had that the company was embarrassed LOT
lack of money. The news caused break Oh
pojnts in the price of the common stock on Mon
DAY and the increasing demorahzatlon IN !he
condition Of speculation doubtless increased thc
difficulties of the company in its financial arrange
ments.
THE BEGINNING OF THE COMPANY.
The National Coriage Company was organized
on July 90, 1887. 1t was incorporated under the
laws of New-.Jersey for fifty years. charter IN
that State being secured because OF the ho'rai
treatment accorded there TO private corporations
>i,.l of
$4,000, 900 was issued in shares OF common s,Dck
And So, OOO 900 in shares Of per cent cumulative
preferred stock. The Security CorPoratic1 Com
pany yas incorporated under New jersey laws III
isOi, Tor fifty years, with capital of $4,000.
On November ?, 1891, il purchased from H. Ma'er-
bury & Co the following concerns: Boston oorue
age Company and Standard Cordage Company, OF
South Boston, Mass. Ncw-Bcdtord CordaGe ON
pany, of New-Bedford. Mass Lawrence Kope
Works Of BSIookdn ~ Co par19 Of Xenia on
and William Decring & Co., Of Chicago. These
properties were leased to the National Cordage
Company for twenty, years, ending November i,
i9iI To pay for the acquisitions, the Security
Corporation Company created S6,O0O1oo hrst
mortgage per cent gold bonds, secured upon al
the plant and property OF the Individual COM
NAMES leased 10 the National Cordagc.
The National CordaGe stocks did not become G
prominent in Wall Street speculation until last
vear The summer Of 1892 witnessed the begin
ming of a big bull movement in the common stock;
which did not until the price had touched
1870 Dividends were gradually increased until
the common stock was paving al the rate Of II
ner cent a year The advance in price was oc
compshcd by the work Of bull pool for which
PAL operators at the Stock Exchange The officers
and directors of the Cordage Company were under,
stood to he heavily interested in the pool. and
their numerous friends in club and social circles
were advised 10 buv with confidence The
stock was ORIGINALLY INTRODUCED TO pnognc sncn a.
represented paper profits OF about 100 points.
i.,e pool was finally dissolved last January. and
4 was officially given ont by Mr.: White that
An enormous profit had been distributed among
1he members Mr.. White was in high glec, ana
Issued through one Of the news c agencies ~; J."
vltiU@ them to the carnival" but predicting
that the stock would sell higher after the dlsSo-
luton Of the pool than before. Then came me
doubna Of the common stock. decided upon
hv the directors Of the Cordagc company, faisInn
me amount outstanding TO S2O.ooo'ooo INe FRY
holder of 90 shares OF o.u n oox"' stock a.
dividend.
NEW POOL ORGANIZED
rew hill pool was organized TO carry Oh
further triumphs and the doupFd s'oc" Wa
nlace8 on the market at about 49, quicNS 81
inc 10 -. or the equivalent OF l'o ior o"c VIZ
Issue. That marked the apex OF thc No,o
hoom The price has been steadily shrlnhi"e'
:r- ,,,ornodi,,e violent fluctuations since last
rebruarv IL is said that the bull pool accuih"
LTD about co 600 shares of stock between oo anu
10 in the course of its operations "a, one one. some
But the stock was obtained 100 eas,S ~ onerations
of the shrewd managers OF us OPP Ias
and ' suspicion was excited that o,sJ JAM
n Waterbury who had mot mot i w wtiVs some
of his holdings Mr. Waterbury was approatCHHel
by the pool manager and CHARGED wIi 'G made
stock in violation of the uhders, ~, WE,.rhurv
when the syndicate was formed Mr.. Mh'e aprn.
denied that he was party 10 any snch agr'%
ment bur after further negotatons he ~ nred
il Of the so, 900 shares. Whether that oiocN oi
stock has been carried since by Mr. maisr ,;aG,
Is not known, but il he has held II tnere ,Ean
-I.i, lynnn
place in the price upon the rumors that he Is
personally embarrassed.
b. l. SMYTH co. AlSO o.