The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1895-06-19
ooRDAGE oInoUnAR ISSUED.


| InVestigAtlOns
New York, June 1S.-The New Yorl
Cordage bondholders protective com
mittee to-day issued circular to tn,
bondholders of the United States Cord
| age company. The circular states tina
| since the first announcement on June 1.
the committee had made such eXamina
ton of the affairs of the company as the
reports and data submitted to it by the
company's officials has enabled 1t tC
make. The time has not been sufficient
| for the independent investigation o1
| the present situation and the prospects
of the future But on the data furnish
ed by the company to justify the propo-
sal that the bondholders should extend
their first mortgage bonds to second
mortgage income bonds, giving priority
to bonds to be issued for funds furnish
| ed by the stockholders, the committee
already feels justified in advising the
bondholders that it is unable to discover
any sufficient ground for this relinquish-
ment of their securities.
The circular says that the statements
furnished by the committee reveal that
the company's balance sheet May /,
1895, shows current liabilities exclusive
of fixed charges and taxes) amounting
to S2,155, ,073. 48, and quick assets avail
able for the payment thereof amounting
to $2,S50,529.SS, The committee is in
formal that duripoe Nov Tho Iiahi1itias
were reduced by payment of 100000 of
loans and notes while the value of
merchandise and accounts receivable
on hand June amounted in round num-
bers to $2,000,000 besides other small
items of value. On its own showing
the circular claims the company has
abundant assets to pay current liabili-
ties without encoraching at all on the
bondholders' security.
1t is true that the company started
under serious difficulties arising in part
from the obligations of the old COM
pany for which due allowance ought to
be made. yet it had on January /, 1894,
a capital of 81 1877, 624 81 in cash, 276, 1853 "A
in good accounts and $1,296,O1101 in
merchandise, aggregating $2,77O, ,5SS.7
and subsequently received from sales
of securities 1857, ,497. The company's
embarrassment for want of working
capital appears to be the statements
attributable to the business methods
pursued by the management and not to
causes affecting the intrinsic worth of
the securities.
Chief among these are the following:
In 1894, year Of diminished trade in
all lines, the company purchased daily
850O00O0 pounds of hemp on a declining
market, in addition to 67S7, 900 pounds
on hand at the time of organization,
and nearly 100000 or rope or twlne,
in addition to 900O,0 900 on hand. 1t used
only 44,800000 pounds of hemp in manu-
facture, and after selling off 1900, 900
pounds it carried over nearly 2S,000,000
pounds of hemp, besides 24,600,00 of
rope and twine. It's purchases of raw
amounted to disproportionate
sum of So, ,6S3, 1901. In the year OF
trade with three-fourths of
it's mills idle the company bought the
Pearsall mill for 100000 for which was
paid $500, 900 in cash
The office and agency expenses for the |
y Geil WClC pHUVgOoOsto Oll safes VI pGttJOi- |
3S9O1
The company has discovered from the |
made by the company
no reason why the bondholders should |
their securities in the manner |
by the plan put out in the |
interest of the companys management. |
The committee learns that the under |
ying liens on which stress is laid by |
he company attached to mills which |
nave long been idle and are not urgent. |
A large number of bonds have been all
eady deposited with the committee, but
holders are advised that the general CO.
,peration of bondholders is indispensa-
)le If they would maintain the value of |
heir bonds and void the heavy losses
by the company's plan of re-
The committee urges
prompt deposit Of all bonds with the
Farmers Loan and Trust company or
Boston Safe Deposit and Trust com
amy, Boston. The circular is signed by
)umont Clark, Of the American Ex-
hange bank; r. M. Galloway, Mer-
hants National bank ;Stuyyesant Fish,
National Park bank; c. e. Wall, Ma
ional Bank of the Republic, Boston,
nd George Ripley, Hide and Leather
ank, Boston.