St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-05-06
CORDAGE's DOWNFALL.
An Explanation OF the Causes
Leading 10 1t.

NEW YORK, May Sin the United
States circuit court today Judge Wallace
made an order appointing E. f. G.
Young ana George w. Loper receivers
of the National Cordage company in the
Southern district of New York. The
application for a receiver is based upon
the petition of Augustus V. r. Ellis, a
stockholder, of Westchester county.
The same reasons as those given to
Chancellor McGilI. of New Jersey, are
stated. The Herald gives the following
explanation of the causes which led to
the slump in National Cordage stock
and the appointment of receiver for
the trust:
"The failure is attributed to several
things. Matters eliminated Monday.
when the corporation announced that it
had decided to issue 81, 500, 900 in pre-
ferred s per cent cumulative stock.
This disguSted the brokers, who looked
upon it as a StOck-jobblng 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 of addi-
tional issue of preferred stock was in
quired into on Tuesday the represent
atiyes of the company became indig-
nant at the doubts that the questions
implied in the stability Of Cordage. 1t
was as sound as it could be, they said.
They had money on hand to meet the
coming dividends, and dividends would
be paid regularly i'll the future, as in
the past. This statement was repeated
Yesterday with greater VigOr. The
total liabilities of the company
had only been deferred. A
clever guess put them at just
81, 500, 600, the amount of the contem-
plated issue Of preferred stock. Where
the loss will fail other than upon the
stockholders cannot be definitely
learned. Many banks and banking cor
porations had discounted the company'S
paper, and these are not confined to the
city alone, but are spread broadcast
over the country. 1t was rumored
in Wall street that the firm had
at least 50, 900, 900 of its notes in the
banks. This, however, was denied upon
the word of two prominent firms of note
brokers. Both of these said that the
company had not been large borrowers
of money on the market recently. A
member of the firm remarked that the
amount of paper would not exceed $780,
q 900, as the comprny had indOrSed its
bills receivable and marketed those in
stead of issuing It's own paper. The
other note brokers firm said that the
company had settled transactions of
large amounts with them only yester-
day."
The majority of the directors of the
National Cordage company and the re-
ceiyers met at the office, 147 Front street,
this afternoon, and were in conference
until the close of the day. Appleton
Sturgis. of the company, said, after the,
meeting, that no statement wes
ready, and that it would be
several days before one would
be given out. He would not say if plans
for the reorganization of the companH
had been discussed at the conference.
Mr.. Sturgis said, however, that reOr-
ganiZaticn would probably be discussed
when all the branches had been
heard from. DreXel, Morgan 81
Co., who represented numerous
creditors of the Cordage company and
who are themselves creditors to large
amount, said that their individual
claim against the company was fully
secured. Receivers for the company in
the other states will be appointed to-
morrow.