New-York tribune., 1901-09-22
DECLARES DEAL UNFAIR.
MINORITY REPORT OF STANDARD ROPE
AND TwINE COMPANY SAYS PROP
ERTY WAS TRANSFERRED TO
ESCAPE BONDHOLD-
ERS' CLAIMS.

oncers of the Standard Rope and IWine COM
pany disinclined yesterday TO make any iof
NAL statement in reply to the minority report pre-
pared a few weeks ago by Joseph n Goldoachef'
as mem Der of the stockholders committee 10 IN
yestsgate the affairs of company In discussing
Mr GoIdbacher's report, Joseph O. Taylor secre-
tary and treasurer Of the company. said;
The Standard Rope and & TSne of c3paRo e ay
which ii received from the reorganization Goiia
retained about fifteen mills which would never be
used in this business Part OF the h n1see ,tt ,Sy
tee were preparing make their accounting 10 me me
.xistence Of their body had continued long enough.
corporation called the Cannabls ManuIaeIoriTSs itS
those of the Standard company. was formed, ana
the reorganization committee transferred 10 @ Ine
turning over the stock of that corporation to us us
BECOME part OF the working capital Of the Stand
ard Rope and Twine Company. Mr.. Goldbacher
was present at the meeting as the holder Of, OF
proxy for nine hundred shares Of stock II seems ms
s9gUss that tina IN Rd of the eannabs
company ground that the transfer 10 III OF
me ne SnsS1 bosdSo as As to Mr. Godbachers
about the Union Selling Company. may say ia tnao
also viewed unfavorably company's arrange
,asta ,n having :he war with Spain and consequent
higher prices, what can be done about 1t?
Mr.. Goldbacher said yesterday that while it was
k1zie that had held proxy for 800 shares OF the
,corupany-s stock he had also been present at the
-,>.f4n~ o.. the owner Of 400 additional shares.
eferrirx to Mr.. Taylors remark about his interest
sn the bondholders. Mr.. Goldbacher said that II
sv1s only the part of fairness that he shouio set
forth s.ch facts apparently inmical to the inter
..ss ~ Tho bondholders as he had learned in the
.,purxe OF HIS investigation. On this point the
minority report says: THE purpose OF TINS ar
r>nreruenf {the transfer of the six mills by lhe
reorxa nizasion committee to the Cannabis Manu-
serxnrtnr Company is confessedly bar any claim
nv our first and second mortgage bondholoers that
sasse properties should be included in and covered
nv their first and second mortgages In the ap-
raaoation In 1886 for admission Of the securities OF
khe Standard Rope and Twine Company 10 Ihe
r5tocx Exchange, and also in the mortgages, the
report points out references are made TO prop
urty which the company shall hereafter acquire
M Yeport continuing: Your committee. from
Hexo facts representations, is or opinion thal
wnnse properties so held by the Cannabis Manu-
Saotur.ns Company should OF right have been
transferred to the Standard Rope and Twine Com
many and may equitably be deemed to be EN-
nEAced in and covered py ouf N'sl aii" se
mortgages"
The report figures that the reorganization COM
mittee must have received in all about s40oo"o lor
| account Of the Standard Rope and Twine Company
f which the latter II alleges, received only sSlvoo
AS to the capitalization of the present company
the report continues. member of the reorganiza-
don committee who is also director OF the STAN
xara Rope and Twine Company said in answer TO
questions that 1t practically Impossible 10
ascertain accurately tho value o. The assets. but
that the actual value Of the companys assets at
present was not more than 100000: the difference
between that sum and the So $4,000 for which the
company is capitalized representing goodwill
The assessed valuation OF the five mills owned by
the company and covered by the frst and second
mortgages. the report adds. is s7s,7Ge.
As to the relation between the Standard Rope
and Irvine Company and the Union Selling Com
pany the report that July 81, 1885, the date
of the annual report. the Standard Company was
well established end had gnition for ITSELF
and had IN fact earned S253, ,563 for the year.
On September s. 1898, less than two months later,
the company entered into agreement with the
Union Selling Company. which the report describes
"a corporation created for the sole purpose Of
this contract. with authorized capital of only
100000. Under this contract our product is turned
IL for sale; all agencies or branches es-
tabshed at such large outlay, all our customers
accounts also turned 1t for its exclusive
and benei. and under its sole control. In
the Selling Company agrees to make advances
company at per cent per annum, but only
the of so per of such collateral
ity may be able give 1t guarantees
counts Of sales which il alone makes and controls.
Hence no risk attaches this guarantee, except
of its creation Our company has 10 conSgn
TO the Union Selling Company our entire product.
We must pay, however. ~ per cent commission on
the gross sales Our company must put the
Selling Company in complete possession OF goods
consigned lease warehouses for the same, pay
warehousing. storage and all disbursements in
cidental thereto, insurance, frsights, etc.
The Selling Company is entitled TO accounts
and bills receivable, received for goods sold,