The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-04
RUMELY co. PASSES
INTEREST PAYMENT
Has Ten Days Grace on $780,.
900, Duo on $10,000,OOO
Two Year Notes.
FUNDS WAIT ON EXTENSION
President Funk Says 100000
Is Ready When Balance Of
Holders Deposit.

In view Of tho faSt that the N. Rumeiy
semi-annual interest on 100000 8 per
cent two year notes letter has been sent
to the noteholders by the committee OF
which John W. Patten IL chairman saying
that Il will not Be in . position to meet
Of the convertible trust note agreement is
declared operative by the committee.
The notehoidsrs' COMMITTEES has been
trying since January to secure . SUFFICIENT
deposit OF notes, agreeing to the extension
OF their maturity from 1915 20 1914 The
amount deposited has been carefully with
held from the public until now BY the
members OF the committee. The company
has until March ~ 10 pay the interest on
the notes. amounting 60 100000. Until
the extension OF the notes Is declared
operative the company Will be unable 10
borrow the $4,000. 900 IL needs for opcrat-
ing expenses from Its bankers and II Is
said that It's funds now available for CON
tinued operation viii not last beyond
March ~.
In its communication to the note holders
the committee admits that the extension
plan Is mot unattended with certain risks
but even SO the committee believes II Is to
the interest Of the notehoidsrs to grant
the extension"
c. s. Funk, president Of the NJ. Rumely
Company, has written 20 MI. Patten that
financial Arrangements have bean made
for tho continuing Of the company's bust
ness conditioned upon the extension OF
the notes. ac estimates that with good
crops and normal business conditions tho
1914 seasonal requirements OF the com
rany can be kept within 100000 and
also that this amount can be paid on
from the fall collections This money II
| to he provided by the sale to the banks OF
farmers notes for two-thirds Of their face
| value (including accrued interest under
| an arrangement whereby the company
may buy back the notes by the end OF
1914 on such terms that the funds will
have been procured on an . per cent
basiA
Mr.. Funk adds that In order 10 induce
| the banks TO enter the above ARRANGEMENT
| tho private bankers Of the company have
agreed in addition TO deposit with the
banks for their further protection the
| q, 900. 900 worth OF farmers notes. The
company has about $1,000, 900 face value
| farmers notes already sold maturing this
| year. but arrangements have been made
| with the bankers 10 that all hut about
100000 Of these will be paid by the
acceptance Of other farmers notes matur-
| ing In subsequent years with q proper ad-
justment In lieu of interest Mr.. Funk
| expects TO be able 20 continue such ar
| rangements from year to year a. long A.
necessary.
| A statement issued by N. Rumely Co.
| adds that arrangements have been prac-
ticaliy concluded for the loan Of $4,000. 900
for seasonal requirements, the advance
being conditioned upon the extension of
the oonpany's 100000 convertible two
year no,es to March |. 1913. OF these
notes about IS per cent have actually
been deposited with the depositary of the
| noteholders committee and there are as
surances that about Is per cent more are
| In transit for deposit.