New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-24
financial.
To BOndhOlders of the
UNITED STATES
CoRDACE COMPANY.

The Bondho.ders Protective Committee have since their
June IL. 1885, made such exam'hao"
Of the affairs Of the United States Cordage Company as
the reports and data submitted them by the courtesy
Of the Companys officials have enabled them 70 make
The time has not sufficient for independent invest-
CATION OF situation and the prospects Tor the
future. But the data furnished by the company 10
Justify their proposal you should exchange your
mortgage for second mortgage income bohus
giving priority 20 new be issued for funds fur
nshed by the stockholders your Committee ALREADY 'ee'
justified advising that they are unable 70 discover
any sufficient ground for this REIMBURSEMENT OF your
security
Tn. statements furnished to your Committee show:
~ The Comparv's Balance Sheet. MAY |. 1885, shows
liabilities exclusive OF fixed charges ana taNe
amounting 81 1875 OT3is: and quick assets avalaoe
for the payment amounting TO 80 52ess Your
Committee Informed that during the month OF May
the liabilities reduced by payment Of 100000 OF loans
and notes while the value Of merchandise and accounts
receivable on hand June amounted In round NUMBERS
to 81 600 besides other small items OF value
on their own showing tho Company have abundant as
sets 10 nav current liabilities without encroachng at all
o your security.
f2) While IT is true that the Company started under
serious difficulties arising in part from the Obligations OF
the Old Company which due allowance ought 70 ne
made vet II had January l. 1894 capital OF SLlo'-
Ca q in cash s27CoG3 in good accounts and slZo
OoiO merchandise aggregating s2'Iooss'z: ana SUD
sequcnty from sales of securities s'o anu
the companys for want Of working cap
%, ,,,.a-s t the .ta,emens attributable TO the
business methods pursued by the management. and not
causes affecting the Intrinsic worth Of your security
chief among these the following
Speculation in Raw MatcrinI.-rn 1894. year OF
dmn shed trade In lines Of business the Company pur-
chased nearly $1,000 pounds Of hemp declining
market In addition G7s7.Oo pounds on hand at the
time OF the reorganization, and nearly """V" POUNDS
Of rope and ,wine dn addition 100000 pounds on
hand, They only used ~ 500 900 pounds Of hemp In
manufacture and after selling on 100000 pounds. they
carried over nearly 100000 pounds OF hemp besides
2. pounds Of and tw!ne Their sales OF manu-
featured goods amounted OF their purchases
- raw material amounted the dspoportionae sum Of
81 cS3 1901.
ExpnnsiOn Of Plnnt.-in the same year OF dimin-
shcd trade with threefourths Of their mills Idle they
bought the Pearson mill for 100000 q which they paid
100000
Cost Of MannRcm~nt.-rhe "orlcs and agency OK
,.,.e. for N. year were $500 q 81 100
$50 OF
In conclusion your Committee have discov-
cred In the representations made by the
Company reason why 20" shonid s"rrihre
your security I'm the manner contemplated
by the pinn put out In the tnt~rest OF the
COmpany's present management. They learn
that the underlying liens which stress laid by the
Company attach chiefly to mills when nave long nern
idle and arc
large number II bonds have been already deposited
tu, HOLDER advised that tho general cooperation Of
the hondholiers :, indispensable n they would maintain
the value their bonds and avoid 'he heavy losses
The Committee therefore. urge hc prompt deposit y
bond. with N. FARMERS LOAN AND TRUST
COMPANY. New York city. the BOSTON SAFE
DEPOSIT AND TRUST COMPANY. Boston, Mass
under tho terms the Committees circular Of June r.
New York. Jure Is 1898.
MONT CLARKE,
American EschanG. National Bank.
u. VI. GAILAWAN,
Merchants National Bank.
STuYvESANT FISH.
National Park Bank
EBENEZER y. MASON.
Bank - N.w York
CHARLES 4. VALE.
National Bank q the Republic. Boston.
GEORGE RIPLEY,
Hide and Leather Sstona! Bank. Boston
RURRii.i. ZABRfSkIE BvRRif.i..
Counsel.
JOHN II. RATHBoNE. Secretary.
II Broad street. New-York