New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-12
TO INVESTIGATE COEDhGE AFfhlhN
FORMATION or \ COMMITTEE OF RoNpHoIpERs-
IT'S PURPOSE EXPLAINED by puMoNr CLARKE
urrtNcE OF THE COMPANY.

FORMATION or \ COMMITTEE OF RoNpHoIpERs-
trs rl-Rrosr EXPLAINED HY DuMoNT CLARKE
DEFENCE OF THE COMPANY
Productive Committee Of the hondholders of the
United States Corlagc Company has been formed
conposed OF Dumont Clarke OF tn" American f'N-
,b,npc National Bank. II. " Galloway. of IN"
Merchants National Bank: Stuyvcsant Fish of the
National Park Bank Ebcnczer ;. Mason, OF the
t,,,L ~ New York; Charles A. Nialle. OF the Ma
,onal Rank Of the Republic. Boston, and George
nlul,y OF the Hide and Leather National BANK OF
pos,on John H. Kaihhone. OF No Il Hroad-st..
* secretary OF the committee and Burr'll. Iahris-
kie & Burrin counsel In circular issued yes'er-
dav II * said
largo number Of holders OF the first mortgage
bonds the plan OF IrorsanI , n ~ seronJ
mortgag. income bond. They propose to make 1.
hmalnrs. since lts organization. and Of the present
condition OF its affairs. ana 10 take sun ,,
hondholders l., deposit their bonds with the Farmers
Loan and Trust Company. who VIII issue hfsot'ap.c
n ,S S@H fESHpnanse nonds may be Withdrawn
any time until concerted ar."n may large num-
at The committee ltseIi I'p''''' " "' NUM-
Der of first mortgage pohiS' .
Mr. Dumont Clarke said on the subject we
l., NOT want the Protective Committee to be con-
slorcd as antagonistic to the Reorganization Com
mittec and lts plan II the plan IL found 10 DC HI
right our intention In organizing Is 10 MAKE
,b,roueh investigation. to see how the various
LOSSES have occurred and what the present stun
,ion of III. company is. II the business cannot ne
run successfully why supply further iuhuS' IL J"
can b. run successfully. we shall ieei uspose" ~
mt more money into IT, As II IL. We nave seen
ON. generalization which absorbed IL great deal OF
money and now another is proposed
..Thcrc are expenses In making an investsa''oh
and ,ve shall ask other bondholders to help meet
,bes. expcnses The committee themselves rep
resent about $500 600 OF the Cordage bonds
Mr. Clarke further said that those who were on
thc committee had not been represented at the
meetings which formulated the reorganization piaIi
as they were not directors OF the company.
President W. w. sherman. Of the Bank OF COM
nerce who is a director and member OF the FIX
ecutiye Committee OF the United states coruasc
less Gnanciering which have been maze as a. result
OF the failure Of the company lie sald ne az nu
minisration OF the company mas pcen nv, , aitc y
honest OF course. II We could 20 over the ihattcI
ngain some things would not be done which were
done such az the buying OF hemp AT prices whlcn
we then thought were at tne ,o ~, nca5 ac
cording to the best Judgment or tne r.Nevu'l.. anu
FINANCE committees Frank X. Sturgis Is entitled
10 the thanks OF all the parties IN interest Ior te
manner in which he has managed the finances az
president . ,h.. ,hara or, ,nove-
,n.nfs among the bondholders 10 oppose the re-
nrra nzafion pan | cannot any reason for such
action The only question Is now 10 raise sSV"vv",
,rhch ia required meet liens and TO provide the
bondholders must either foreciose ana that would
he 10 sacrifice the property with niue result put UP
the money themselves. or get II from me STOCK
holders by allowing the latter 10 get something IN
reiurn for advancing the money The last scheme
il the one adopted In the present reorganization
plan As for IT'S cutting down the amount OF the
aiaavs unreasonable and unnecessary. 1t u cut BY
the plan down to $l2OO.VW