The herald., 1895-06-04
A BIG CONCERNS TROUBLES
Receivers Appointed to Handle
the Cordage Company
THE CORPORATION CROWDED
Obligations Due With Little Money TO
Meet Them
Reorganization of the Company Proposed and
the Stock Is to Be Watered-tiow the
Plan Is to Be Arranged

Associated Press Special Wire.
NEW YORK, June 3.-Justice Ingram
in the special term of the supreme court
today appointed John |. Waterbury and
William Il. Strong receivers of the Ma.
tional Cordage company, under bond of
S100. 900. The receivership is the result
of the proceedings instituted by b. Roll
lins Morse. The application is supple
mented by aftidavits of President Sturgis
and Vice President Lane that tho COM
pany has defautied in payment OF 500,
900 for hemp and that the company has
obligations coming due this month to the
extent of $780, 900 with little cash to meet
the same.
The application for the appointment of
receivers was duo to the fact that the
company has not sufficient funds to carry
on the business and was unable to ar
range for sufficient time to meet the re :
quiIements of thu occasion. A receiver
ship became necessary.
Frank Sturgis. William Barour and
John |. Waterbury, who have agreed to
act as protective committee under the
reorganization of the company, lave
issued circular in which they say that
the conditions require an immediate
introduction of new capital to be repre-
sented by new first mortgage bonds B.,
which shall be applied to take up under
iylng loans and as an increased working
capital. They submit plan for reor,
ganization as follows: The issue of thre e
million first mortgage g per cent 50-year
gold bonds.
The issue OF ST. 800, 600 of consolidated
| mortgage bonds. per cent. ffty-year
gold bonds. with voting power. These
bonds are to be non-cumulative but to re-
ceive . per cent interest, payable from
pro1lts IN any one year prior to any divi-
dends OH the stock of the company. In
any year in which a dividend OF per
cent is paid on the STOCK of the company Y
there shall be paid from profits on such
consolidated bonds an am cunt not to ex-
ceed "a per cent. provided the unpaid
interest III arrears on such bonds shall
equal such amount, and if not, then the
amount of such bonds that may be SO in
arrears. The issue of common stock to
the amount of S12 900 900. holders of til e
present w. 800, 900 bonds to receive par in
new consolidated bonds. Holders on pre-
scnting the stock shall subscribe at par
for new first mortgage bonds to the
amount Of 500 per share and shall receive
80 per cent i'll the common stock of the
! company.
Present preferred stockholders shall
subscribe at par for the new rst mortg-
age ponds to the amount of $40 per share
and receive 40 per cent of the new COM
panv's stock. Present common stock
holders shall subscribe at par for the new
first mortgage bonds to the amount OF s.
per share and shall receive % per cent of
the common stock of the new company.
Deposits Of present securities must be
made with the Manhattan Trust company
by June 2Uth. The subscription to the
present new issue of So, 900. 600 OF first
mortgage bonds has been ndertaken by
the syndicate. The ord ers of appoint
ment OF receivers provide for a continu :
ance by the receivers of the business OF
the corporation.