New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-04
RECEIVERS FOR CORDAGE.
7 WATERBURY, AND W. E. STRONG AP-
POINTED.
ACTION By COURTS IN THIS STATE MAssAcHu'
crrrs AND NEW-JERSEY

ACTON By COURTS IN THIS STATE MAssAcHu-
SETS AND NEw-JERsEY.
,.,.. ,,srabam in the Supreme Court. yester-
Asv Amounted John J. Waterbury and William 4.
receivers OF the property In this state OF the
limited States Cordage Company, which Is the re-
nreanized National Cordage Company The re-
ceiyers are required TO give Joint bond OF soc"V.
ar Waterbury and Mr.. Strong also were appointed
aca,vers OF the property Of the company in Massa-
chusetts Yesterday morning by Judge Colt. In the
limited States Circuit Court in Boston. On Satur-
6av in Trenton Chancellor McGill appointed MI
waterbury receiver OF the company's property In
New-Jersey and Mr. Waterbury has filed the re-
ouired bond Of 100000. his bondsmen being John
Kean and Hamilton #. Kean.
The applications for the appointment or the re-
delivers In the three States were made by E. Roi-
Inns Morse. who. in the actions which he has be-
gum declares that the company has defaulted in the
payment Of $4,000 for hemp and Is not able 10
meet Its obligations In addition 10 the complaint
verified by Mr.. Morse. who owns 1900 shares OF
stock and FIVE of the mortgage bonds the afdavts
OF Frank X. Sturgis. president and William e.
Lane president Of the company. acknowledging
the insolvency, were submitted TO the Chancellor.
1t appears that bill of $4,000 for material has
fallen due. and that there funds to meet II.
and that there Is prospect OF meeting $4,000" OF
interest which falls due July |. Ii is alleged
that the working capital Of the company. though
business. The receivership is the result OF action
taken by the directors at meeting held on last
Friday.
The announcement Of the recsivershp yesterday
was Immediately followed by the announcement
that circular had been issued to the holders OF
the conpany's securities by F. *. Stursis John l.
Waterbury and William Barbour. "A committee
designated to protec. the rights of the security
holders In the proposed reorganization of the COM
pany. In the circular the following plan OF reor-
ganzation is submitted:
The issue of g 10000 frst-mortgage per cent %
year gold bonds The issue of s5o0oo o: consolidated
m0rgase per o fes pTai w but ape to
receive per cent interest payable from profits IN
any year pr h 10 any dlnI Of pe r cent is pad
Upon the stock OF the company there shall be paid
amount not to exceed 2q per cent provided the un,
paid interest in arrears on such bonds shall equal
such interest as may be in arrears. Common stock
o1 ns OF e sge cponsoae Sonds 81 Hod
OF present guaranteed stock snail subscribe az
$ao per share and shall receive 80 per cent in the
common stock OF the new company. Present Pre-.
new frst-mortgage bonds to the amount Of so per
share and shall receive 40 per cent IN the new D com s
scribe at par for the new rst7mortgage Donds 10
in the common stock of the new company.
Deposits OF present stock and securities must be
% The subscription to the proposed new issue OF
100000 of first-mortgage bonds has been under
written by a syndicate.
Mr.. Waterbury not in his office yesterday
afternoon when reporters went there 10 make IN
uuries Mr.. Strong declined TO make any state
ment. The corporation for which receivers have
been appointed mas been in existence two years
and one n.onpi. 1t the successor OF the Ola
Cordage Trust generally known as the National
Cordage Company in which three years ago there
big speculation that carried the price UP
nearly $50 The capital stock Of the company
was then doubled. and the flower OF New-foTk
Oh arohl Of ha a
effort to another boom in 1t. The stock paid
dividends practically up TO the end. and few were
prepared for the announcement OF a recelvership
when IL made on May 3. 1923.
Then the property was reorganized by Its banker
creditors. those who had loaned money TO It 10
enable II to carry on business The corporation
for which receivers have just been pamed took
charge Of the property January !. 1894 and at
that time 1t was generally understood that among
the assets 100000. received as assessments
from stockholders. This. however; was not In sight
on January !, when interest due on the bonded
debt The company continued heavy borrower
from financial institutions. and recent declines in
its bonds called attention 10 the fact that another
coupon on the bonds will be due on July l.