New-York tribune., 1905-01-28
TWO RECEIVERS NAMED.
CHANCELLOR MAGIE ACTS.
Grants application Regarding
Standard Rope and T5Gine.

Trenton. " J. Jan. 27.-ChRncellor Magic to-day
ales N the Court OF Chanoery an order appointing
Dirk s Ramsay, president OF the East River Saw
ms Institution. Of New-York, and Frederick K.
rsr. Of Elizabeth roceivers for the Standard Rope
and Tu1ne Company. The application for a receiver
WIS made by George ". Montgomery, OF New
York rice-president OF the company. The reasons
fr the application are stated 10 be the INABILITY OF
me company 10 pay the interest due on February
on its 6 per cent first mortgage bonds the default
o. two sinking fund payments OF 27,4o each due
respectively in August ls0S and August 1904 and
the large Indebtedness Of the company and the lack
o. sufficient collateral TO protect the same
N lis bill of complaint Mr.. Montgomery ayers
that the c0mpany's property covered by the hrst
mortgage is not worth than s. 10000 the out
standing first mortgage bonds amounting TO S2,74o-
0N par value. He also says that the Standard
Rope and TWine Company being embarrassed for
ank Of sufficient working capital made arrange
msnts with the Union Selling Company TO lend the
Standard company such sums should be required
he loans being secured by transferring 10 the Sell
hg company hemp and manufactured rope and
tEiuc and the capital stock OF the Caansbis Com
Isny a corporation holding o9 the idle Inill
goperties OF the defunct United States Cordage
company and he charges that the Standard
any al the present times owes the Union Selling
tonpsny SSSz 45A He says that, owing 10 the re-
oent serious decline IN the price OF hemp. IL is
doubtful whether the sale OF al the collateral held
- N ohlo. 2ei.IIs .Is NoIl4ps5y Noutu pE0ouee
mat IN addition 10 the SsSs 408 due the Union Sell
ing Company. the Standard Rope and TWine Com
pauy owes $42522 making its aggregate debt 81 29s-
- The assets the bill Of complaint states 81 900
in bank and manufactured fibre worth $4,000,
ready referred 70.
The Standard Rope and Twine Company was IN
cofpoTated al Trenton November g. 1886. as sue
oessor 10 the failed United States Cordage Com
pGny which itself a reorganization Of the Ma
uo1al CoTasge Company, the failure OF which, IN
lss Is stl4 remembered Wall Street sensation.
ffon the outset the Standard Rope and Twine
eoupany's path has been one OF difficulties II
tArt5o business with q working capital OF about
NaNen In its first year OF operation it lost about
sAND through severe competition. and some time
r sustained further losses G $500 900 IN the pur-
eAss Of raw hemp. the price of which soon after
taa Eel sharply. and $780, 900 through the so-caled
lfaFers contracts. These losses consumed about
lHee-Quarters OF the working capital. In 1895 the
unlon Selling Company capital $50 OOo was formed
&c contract was entered into between it and the
Hsnoard Rope and TWine Company which pro-
1.oeo that the Selling company should guarantee
.Hr accounts OF the Rope and Twine company and
1uFrlsh 70 II working capital at 9 per cent and
ma ne Rope and Twine company should turn
Ss SoeT each year 10000 pounds Of manufactured
rel e q q ne Inlon Selling Company, which was to
-stse commission on the whole amount.
Fbls OF aot the entire stipulated @ 90 600 pounds
Il go. he contract vTas : sraerSe5 IS J4, S.7,
- c company thereafter receiving i cent a pound
f5., esefsge selling price. This contract has been
- sb9sy sttacked IN the past as TOO favorable 10
Eo,.S Ss.55-B company and ruiDOUsy costly 10 the
bsyyee &c Irvine company the affairs OF which
Va.ss AZ seFersl years been going from bad to
s-r.oi-. ---ofe tG2n q year ago committee was
xy++s-leo 70 FORM plan for obtaining additional
T.-is capital. but Il has made no progress
sTSsloe Scott. in the Supreme Court yesterday
esIIs---' --'sa appointed Aessrs Ramsay ana Day an
Coss55ySc 5ScelFefs & for the Standard Rope and Twins
roS appointment OF receivers for the. Standard
sro,rt 80 wine Company has been followed by the
sfsr+iaI OF q committee by the holders OF sub
b0r5s amounts OF the oompany's first mortgage
viD n protect their interests II consists Of Al
Msoks.. AassSch, Chairman; James 3. CleWs, Donald
IsS--s.,S marie Z. OrV1s and Valentine p Snyder.
y,efarS - l5llespie Of No. Is Nsssau-st IS sec
T6ss 80, &c Alexander & Colby are counsel
t1rffss ....inttee says that II IS imperative that
Fgre b,rslloll De taken Rt by the first mort
c0Tseo-r-o4Qers 10 conserve their interests and IN
den0Sit 80 holders of the bonds requested 10
co,,-s-,sn r-s.n promptly with the Equitable Trust
az - ork. which VIII issue its negoo-
io--r,-ig+-FeS lof The same. Should the committee
b. 49,. g pan % reorganization, provision VIII
borSSsl1t ~ ne withdrawal Of bonds by dissenting
AsISe-Ss = N.tAout expense. Copies OF the bond
ae61 - ..[OlecHVe agreement may be obtained
v the Stock EHcfsrIre ,yer+srds,y STANDARD Pona
a. a. STOCK closed at IA a net loss for the
- - FSI cent The income bonds closed at 3.