New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-19
financial.
To BOndholders of the
UNITED STATES
CORDACE COMPANY.

The Bondhoders Protective Committee have since their
first June L. 1895. made such examination
OF affairs the United States cordage Company AS
the reports and submitted to them BY the courtesy
OF Companys officials have enabled them TO MAKE
The time has been sufficient or independent nvesu-
CATION present and the prospects for the
future But the data furnished by the Company %
Justify their proposal that you should exchange your
hrst bonds for second mortgage income Dohds
giving priority bonds to be issued Tor FUNDS iu'-
nshed by the stockholders your Committee ALREADY feel
justified advising tina, they are unable to discover
any sufficient ground FOR this accomplishment OF your
security.
The statements furnished to your Committee show
Il, The Companys balance Sheet May /, 1895. shows
current liabilities exclusive fixed charges and taxes,
amounting s..i55o73Is and quick assets available
for the payment amounting to S23ooo29s> Your
COMMITTEES Informed that during the month OF May
IN. liabilities reduced by payment OF Suoo" OF loans
md notes while value II merchandise and accounts
receivable hard June amounted In round numbers
to 5000 600 besides other small items OF V"ue.
ON their showing the Company nave ABUNDANT AZ
liabilities without ehct"acni's al M
on your security.
e, Wh..e is tru. the Company started under
serious difficulties arising part from the Obligations OF
the Cd Company FOR which due allowance ought 10 De
made yet mad January l. 1894 a capital II sii'''-
6.t27 In cash. s276 gliI In good accounts and siIoo-
ool OF In merchandise aggrcsang s217O'ss2; and sub
sequcntly received from sales VI securities ''' 49, anu
the Ccmpanys embarrassment for want OF "orKhs CAPT.
by the statements. 10 l." atulou'Dc I" 'e
business methods pursued by the management and not
causes Affecting the Intrinsic worth Oh your security
chief among these the following;
Speculation in Rar Nai,riaI.-n 1874 year Il dimn-
ishci trade in al Ines Il business. the Company
chased nearly s5,O0uoo pounds - hemp declining
mark. lin addition to GI,7oo pounds on hand at the
time Il the reorganizaton and nearly G~opVo pounds
OF rope ard irvine On addition TO "o"."" pounds on
hand, They only used Al. 10000 pounds of hemp In
Manufacture ard after selling N 100000 pounds. they
carried oyer nearly pounds Of hemp. besides
c 900 mounds - rope Their sales ~ manu-
featured goods amounted 81 iyj Ss9oi their purchases
q, raw material amounted the disproportonate sum Of
81 .6>3 1901.
ErDansion tho year o diminished trade
with thre, four;hs Z nils id'e they bought the
Pearson mill for sgOooco of which they paid $4,000 In
cash
cost NJ NdnGq>m,n, I'll" "onlce ard agency expenses
,- fh. y,ar mere s.Gc e. safes - S2i9G3s9ol
In conclusion Your Cormitt'' have discovered In IN"
rc,-e.eu, - nale by tie Company reason why you
.,f sacrifice ,o4- srruf, the manner contemplated
b, The Man nut olt IN Interest q The COMPANY =
pre..nt rnanaremcnt. They Lam that the underlying
inns IN which Stress lad ~ he company. attach
chiefly - mills which long been Idle. and are not
drscnl
large number bonds have been already deposited
D., ,..-y are advised that general coopefaton =
tho b.nIhoilers indispensable If ihey would MAINTAIN
N. ,aue u their bonds ani avoid The heavy !osses
threatened IS tho Company pan u reorganization
The Committee therefore ufgc he prompt deposit ~
-. vt,, ~. FARMERS LOAN AND TRUST
COMPANY. New Nork CTS. r To- HUSTON SNfE
nrro.IT AND IUt IT COMPANY. Boston. Mass,
und,r tho 'or itt'~s circular % June T.
~ N.tk 1875