The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1895-07-18
PLAN OF REORGANIZATION
CIRCULAR HAS BEEN ISSUED BY
the CORDAGE BONDH0LDERs.

Gold Bond Securities Are to he Issued
Negotiable Receipts VIII be Issued by
the Farmers Loan and Trust Company
Stockholders Must Endorse Their Stock
In Blanks in Proper Form.
New York, July 1.-THE United
States Cordage bondholders' reorgani-
zation committee to-day issued the fol-
lowing circular:
To holders of first mortgage bonds
and of guaranteed. preferred and
common stock of the United States
Cordage company:
The undersigned at the request of
the United States Cordage bondholders'
protective committee have consented
to act as committee for the reorgani-
cation of the affairs of the company.
This committee deems 1t matter of
Importance that the affairs Of the re-
organized company be managed by
persons conversant with the Cordage
business In order that the failures of the
past may not be repeated. They recon-
mend that the mills not necessary for
the purpose of the company should
be disposed of, and that the amount
thereby realized be applied to the pay
ment of underlying liens on the remain
ing mills. BY this means also the cost
of carrying mills which last year
amounted to 100000 will be saved.
With an efficient management 1t is be-
lieved the company can safely incur the
fixed charges imposed by this plan.
The committee has prepared and de-
posted with the Farmers Loan and
Trust company a plan of reorganization
providing in substance as follows:
First-The organization of the cor
poration to acquire such portions of the
real estate and other properties as may
be necessary for the purposes of the
new corporation.
Seoond-The issue of the following Sc
curities: (a) Six million two hundred
and fifty thousand dollars In first mort
gage fifty year gold bonds redeemable
at 105, interest to begin to run from
April /, 1896, at the rate of per cent.
for three years and s per cent. thereaf-
ter. (b) Sixteen million two hundred
and fifty thousand dollars of common
stock. %
Third-The holders of bonds and stock
of the present company. who shall be-
come parties to the reorganization shall
deposit the same with the committee
and shall be entitled to receive bonds
and stock as above described on the
following basis:
(a) Holders of the $6,543,500 present
outstanding issue of first mortgage
bonds shall be entitled to exchange the
same for first mortgage bonds in the
new company at the rate Of 5000 Of new
bonds and $400 of new stock for each
$1,000 of the present bonds.
(b) Holders of guaranteed stock shall
for each share Of their holding be en-
titled to subscribe SIS for which they
will receive said new first mortgage
bonds to the amount of SIS per share
and new stock to the amount Of $50 per
share.
(c) Holders of preferred stock shall
for each share of their holding be en-.
titled to subscribe for each share OF
their holding be entitled to subscribe
$780, for which they will receive said
new first mortgage bonds to the amount
of $3.50 per share and new stock to the
amount Of $45 per share.
(O Holders of common stock shall
for each share of their holding be en-
titled to subscribe 1915; for which they
will receive said new first mortgage
bonds to the amount of $3.75 per share
and new stock to the amount of $22. SC
per share. E
Subscriptions will be payable one.
third ON the deposit of the stock under
the reorganization agreement and the
residue In two installments as called fol
by the committee on not less than ter
days notice.
Holders Of securities Of the United
States Cordage company must deposit
the same on OF before Monday, August
5, 1895, with the Farmers Loan and
Trust company, New York, as follows
First mortgage bords.
Guaranteed stock with first Install
ment of IS per share.
Preferred stock with first installment
Of $3.50 per share.
Common stock with first installment
of $1.25 per share.
Negotiable receipts will be issued by
the Farmers Loan and Trust company
on deposit of the securities and appn
cation to list the same will be made
to the New York Stock Exchange
Stockholders must endorse their stock
in blank in proper form for transfer
and deliver the certificates to the Farm
ers' Loan and Trust company on o.
before Monday, August g. 1895, accom-
panied with certificates of deposit.
(Signed) Stuyvesant Fish, George
Mosle, Charles A. Peabody, jr., com
mittee.
Mr.. Fish is president Of the Illinoi.
Central railroad, also vice president o.
the National Park bank and Is larg,
holder of the Cordage securities. George
Mosle Is a member of Mosle Brothers
one of the leading commission house!
in New York, and also represents {
large number of the securities. Charles
A Peabody, jr., is a director of tn,
Farmers Loan and Trust company, ant
represents the Farmers Loan and Trus
company and the Astor estate.