New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-19
A REPORT ON CORDAGE.
cr.rEMENr OF THE BOND!IOLDERs' CON-
MlTTEE.
,,r INQUIRY CONFINED TO DATA SUBMITTED By
THE coMPANY's OFFICIALS ADVICE NOT TO
ACCEPT THE REORGANIZATION PLAN

CRITICISM OF THE MANAGE
uEN1-s BusINEss METHODS.
IT.. r,rr.l States CordaGe Bondholders Protec-
.,,. committee consisting OF Dumont Clarke. o, tho
American Exchange National Bank; r. NJ GAIA
vav Merchants National Bank. Stuyvesant FISH.
National Park Bank; Ebenezcr 5 Mason BANK OF
NswYork: Charles A. vialle. National Bank OF the
peoubNc Boston and George RIPLEY, Hidc ana
Leather National Bank Boston. have issued a
statement 20 tseSbondho FOLDERS that they have made
such ar examination Of the affairs OF the United
States Cordage Company as the Gaia suDn''''eu 10
them by the courtesy Of the companys ofhciaS nave
enabled them 10 make. TIE time the Committee say S.
has not been sufficient for an Independent nvestga-
ton o. the present situation and the prospects lot
tho future The statement continues as follows;
But on the data furnished by the company TO
Justify their proposal that You should eScnan Is
come bonds giving p phsd me stocTholders Your
they are unable to discover any sufficient ground
Tor o Of y9nT feer SHOW the state
l. The companys balance sheet May l. o l%Sa;
Charges and taxes) amounting to %.l55o,S as;
and quick assets avas bic .,a for the payment mem"
,Ssi.o s%0p 5.cfmed Ss; during Re' month
Of May tho liabilities were reduced by pay
of & o an 'G"ns on 0iS on
June amounted In round numbers 10 s1'"s;v"; d.
own showing The company have abundant assets
TO paw current liabilities without encroacnins a.
all on your security. , 49,
While IL is true that the company started I'M
der serious difficulties arising in part from the oo-
liSa tions of the old company for which due aliow-
a'c cspItaI Of N.ia Va q In cash s2ssSS a in good
accounts, and s.29s.ool OF In merchandise agsresat-
ing ST. 10 5ss 70 and subsequently received from
sales Of securities. SS149'; and the companys en-
hv the statements. TO he attributable 10 the busi-
ness methods pursued by the management ana NOT
causes affecting the intrinsic worth OF your Sc
curty Chief among these are the ioiloWlne'
In 1894 a year OF diminished trade In all lines or
business the company purchased nearly S;gooW
pounds Of hemp declining market Tin additon
organizaor) and nearly 100000 pounds OF rope and
twine Din addition TO 600 00 pounds on mana, !hey
only used 46.SoO00 pounds of hemp In manufacture;
and. after selling off 100000 pounds. they &C carpis1
facured goods amounted to s2iss.3s9 or their pur-
chases OF raw material amounted 10 the dispropor-
tionate OF 81 CS3,l2O OIL. -. 49,,
fourths OF their mills idle they bought the pearson
mill FOR $500 900. of which they paid 10000 IN cash
The ''ofice and agency expenses Tor the year
were $3.50 O26 IS sales OF 2.4.63sy 81.
In conclusion. your Committee have discovered IN
the representations made by the company no reason
why you should sacrifice your security In the man
terest OF the company's present management They
learn that the underlying liens. on which stress Is
laid by the company, attach chiefly to mills whch
have long been idle and are not urgent large
number Of bonds have peen already deposited but
holders advised that the general cooperation or
the bondhoders is Indispensable they wouid
maintain the value OF their bonds. and AVOID me
heavy losses threatened by the companys plan OF
Reorganization The Committee. therefore. urge the
prompt deposit Of bonds with the Farmers Loan
and Trust Company. New-York city. or the loston
Safe Deposit and Trust Company. boston. Mass, !;
under the terms Of the Committee circular Oh
Jun