New-York tribune., 1901-09-21
STOCK JOBBERY CHARGED
A MINORITY REPORT ACCUSES STAND
ARD ROPE AND TWINE DIRECTORS.


1t learned last night that the report of
the committee appointed at. meeting of the
Standard Rope and Twine Company a year ago
% investigate certain charges against the direc-
tors was not the only report in existence deal
ing with that subject. Joseph y. GoIdbacher.
chairman of the committee. sent out
nouncement saying that the report printed in the
fifth annual report of the company purporting
to he the report of the stockholders commit
tee" etc, was not the report of the committee,
hut the majority report
This statement in the company's report, he
said last night. intended to conceal the
fact that there a minority report file
which contained statement of facts damaging
to the management OF the company. The
jorty report. he said. made up of excerpts
from the minority report, the selections being
the parts favorable to the management. This
majority report presented by four OF the
five members he alone signing the minority
report;
The minority report purports to show what
has been done to keep the company on its feet
ana make a favera BILE showing in the
ports To the stockholders. In substance, il as
serts that the management of the Standard
Rope and Twine Company which is the
ganized United States Cordage Company. has
diverted property which properly should be
part of the security for the bonds in such a
way that the bonds not liens upon il.
MILLS SOLD FROM TINE TO TIME.
Several of the mills have been sold from time
to time. it states, 10 make good showing in
the reports. According to this minority report
when the business. through the adoption of
new system OF selling goods. actually began TO
show profit those the inside formed the
Union Selling Company TO absorb all the profits.
which it did. its stock being quoted consider
ably above par. while that Of the Standard
Rope and Twine Company which earned the
money. sold around 4.
When the company was reorganized five
years ago, Mr.. Goldbacher said. application
was made to ;he Stock Exchange to have its
stocks and bonds listed. In this application II
was stated that FIVE of the twenty-One mills
owned by the United States Cordage Company
had been turned over to the Standard Rope and
Twine Company and that the remaining six
teen mills in the hands of the reorganization
committee would also be turned over. that
all might become part of the assets. The six
teen mills not turned over. and to-day the
Standard Rope AMI Twjne Company owns but
five mills runs the report.
THE CANNABIS COMPANY ORGANIZED.
This reorganization committee had not been
properly discharged up To a short time ago. 1t
held the sixteen mills until the Cannabs Com
pauy wGs organized by some of the stockhold-
ers of the Standard Rope and Twine Company
70 take legal title to them. and keep them
from becoming a part of the security of the
twine company's bonds.
This Cannabis company. Mr.. Cioldbacher as
serts; never has done a particle OF business; its
officers are the those of the twine COM
pany they receive no salary from it. and its Of
fees are the same those of the twine company
From time time the mills have been sold to
provide money TO recoup business losses until
five and an interest in sixth have been dis
posed of.
\ system of selling devised by which the
company opened agencies throughout the coun-
try so that it could sell direct to the consumer.
The poor showing that year explained i'm
the majority report to be due to this change of
policy. The next year the business, owing to
; the adoption of this method, showed a profit
Then the Union Selling Company formed to
Rope and Twine Company for certain per-
centage The business increased about So00O 900
and the expense of selling the goods under the
contract increased TO almost the amount.
The Union Selling Company made 2S per cent
profit while the selling expenses of the other
company were increased to the point where the
possible profit wiped out and the losses were
piled up instead.
A unique feature of the situation. Mr.. Gold
bacher said. was the fact that the directors did
not a short time ago. at least, own any stock
but used one thousand shares remaining in the
treasury, which placed in their names to
qualify With
The reason the majority report the one
accepted, Mr. Goldbacher declared due TO
a vote by stock proxies for 6S 900 shares which
were in the hands of the directors All but
five of the stockholders at the annual meeting
held at Elizabeth. n. j.. on September IL voted
for the minority report.