St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-06
NO NEED OF A RECEIVER.
Company Perfectly Solvent,
Though Heavily in
Debt.
UNINJURED BY PROCEEDINGS
Banks Understand the Stu
alton and Help
Along.

I. S. TompkinS, president OF the
North western Cordage company, yes
terday made the following state ment 10
a GLOBE reporter regarding the appli-
cation of S. M. Allison for receiver
for the company. and his allie cations
with reference to its affairs: 81.
1.-The Northwestern Cordage company
does not propose to try its lawsuit in the
newspapers, but for the purpose of Civ
ing the public accurate information
concerning the company. and the mean
ing of the suit brought by S. M. Allison
against it. as published in the Morning
Call, wish to make short statement,
and in this statement do not say any,
thing for the pur pose Of injuring any
one.
."Some Of the allegations in Mr.. Alli-
sons complaint are true, and others are
not. 1t is true that the company owes
large amount of money, and that A. NJ.
Drake, W. Nj. Holbrook, S. M. Allison
and others interested in the company
are indorsers OF the notes which evil
dence the greater part of this indebted
ness. These notes are largely held by
The banks of st. Paul, $4,000 by the
Merchants National bank and $4,000
by the First National bank. being paya-
BILE on demand. The company at this
season of the year requires very large
amount OF money, as all Irvine CON-
panieS have to pay cash for all raw ma
terial. The banks fully understand
this, and have been loanng the COM
pany freely for this purpose, and they
are not disturbed in any way by this
action on the part of Mr.. Allison. AS
far as his Endorsement is concerned,
think the banks will admit that they do
not consider it as adding materially to
their security.
LAS for Mr.. Allison's allegation that
the company is insolvent, if he means
by this that the company cannot pay its
entire Indebtedness at the present time,
it is true; but it is not true that the
company has not coed assets very
largely In excess of Its liabilities, and,
its credit is unimpaired. His allegation
that the company has lost money is true, ).
and what company has not during the
past two years? This loss has been very,
largely the result of the very great de-
probation in the prices of the material
used for making Irvine, and of the man-
ufactured product, but this loss does
not In any manner hamper it I'M its
business, its paid-up cash capital being
S35O,000.
eff any of this loss has been caused.
by miSIn anagement, 1t is sufficient to
state that Mr.. Allison has been the
general manager of the company since
its beginning, two years since, and
until within month. At the last cleo
ton of officers, held in December, Mr.,
Allison was not re elected manager nor
given any other Office, because it was
not considered by the board of directors
or by the stockholders for the interests
OF the company. In the latter part of
December, Mr.. Allison was offered a
position as salesman at a certain salary,
which position lie offered to accept at
slightly increased salary, and this in
crease the company REUSED to give him.
His present attitude was not assumed
until the company refused TO pay him
the salary he asked. We will leave 1t
for the public 10 make their own in
ferepces as to his motive in bringing
this action against the company at this
time.
The Northwestern Cordage company
is not connected in any way with the
National Cordage trust, which coli
lapsed some eighteen months ago. Our
company is st. Paul Institution.
backed by st. Paul capitalists, who are
Jealous Of the reputation of st. Panl
enterprises, and amply able to take
care of this one, and will do so. AS far
as the efficiency of our present manage
ment is concerned, under the circum-
stances, we leave that for the public
and the banks to judge, rather than for
MIR. Allison. The prices of raw ma
fpri0I 70 q IA
possible, and the company has made
the most advantageous arrangements
for diSposing of its manufactured prod
uct this season. We are not disturbed
in the least by the bringing of this
action, and will continue business with
out interruption. The works will be
started Monday, as announced"