The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-16
A SYNDICATE SCANDAL.
THE MILLIoNyAIIg BANKERS FALL OUT ABou1
The FOUR PER CENT LoAN-wHAT THE NLN~

THE MILLIoNNAIRE BANKERS FALL OUT ABou1
The FOUR PER CENT LoAN-wHAr THE NLH~
BERs SAY.
"a very pretty quarrel as IL stands.'
This Is what Mr.. Thompson. the president OF tho
First National Bank, SAID yesterday to HERALD re-
porter referring to the among tho members OF
the syndicate In regard 10 the way In which Messrs
Morton, Bliss & TO. had left somo members of the
famous combination OF bankers out of the association.
In continuing the gentleman said .PcrsonaIiy have
no grievances. neither has tho bank represent but
there very bitter feelings and mony recrminatons
among houses who formerly associated in the
Syndicate with u.s. Among these may the Mcr.
chants, American Exchange, Bank Of New York,
Third National, United States Trust Company. wnsow,
Lanier & Co.; Kuhn, Loeb Co., and others, all Of
whom claimed to be joint contractors with the
mcnt and part OF the Syndicate. Mcssrs. Morton,
BLISS Co. were desired by Mcssrs Rothschd rep
resent tho Syndicate with the government, thus sim
pyng clerical the four and one.n half per
loan"
When the government Withdrew the last 500. ooQ 900
unsuD-c Of the latter loan Norton Bliss Co.
went to Washington. ana. u Is asserted, signed away
not Syndcitc's interest the $500 000. 900
OF the TOUR and shall cents, but received the
power u form the new combination Tor tho ncgouae
ton OF the iour per cents In the latter organza-
ton the complaint Is that their old associitos-
tho banks aud banxcrs VINO had furnished thcm with
material strcngtn--wcrc totally ignored The opera
lions OF the now Syndicate closed on july with sub
scripOn OF about f76, 100000 this country and -
Europe The bank presided over by Sir. Thompson
(thc Fret National) broadway, near Wall street,
negotiated nearly hail OF the loan takon In this coun-
Try Tho new Syndichte composed OF tue fsoth-
schds, August Belmont Co, Drcxoi Co., OF Phila-
dclphia; Drcxc, Morgan Co.. OF Now York; sels-
man x Co., the First National Bank and Morton, Bliss
Co. No sooner was tho new combination started
tnan spccuations IN tho loan were inauguratcd,
and bonds could DO bought on margin Of two or thros
per cent
Mr.. MORTON SPEAKS
The above named member oil tho firm which had
with tho Syndicate waited by q HERALD
reporter at hts banking house but he said
general newspaper comment, ho would prefer not
10 speak o. 'ne ne matters matt N aspu.S As 70 Tue n"o
temporarily depressed ~ price below IN goid tho
figure a! which the Syndicate was Offering them that
ton OF nearly all the loans, and meant nothing
OTHER BAyREns
Mr. Jesse Scligmau member OF the nrfn OF J. 4 W.
Scgman, in Broad street, and member OF the Synd.
cate. SAID tnat undoubtedly somo banks had felt az
Scaman) thought that Mr.. Morton had acted accord.
ing to Instructions Ia all matters, and and
honorable 10 his associates. As for tho present dull
the and lack OF subscriptions would
doubtless change for the better in littlc whle The
government short time will pay out about seventy
millions of dollars Tor interest, aud this will have
bc reinvescd aud persons can buy government bonds
ana sleep contentediy. Mr. sensman admitted .ne
Ing out Of their old confrtres but thought tho
whole affair could DO adjusted ~ left 10 tho arbit
ramcnt OF one or two gentlemen. who could review
the case dlspassiOnatcy.
Kuhn, Loeb Il Co., tho bankers IN Nassau street,
preferred let Their rights DO arbiratcd regard
tho Syndicate matters; u was not disguised by them
that there harsh feeling in regard TO tho way
they had been treated but they did not think that
legal measures would he attempted.
The presidont OF tho Bank OF New York admitted
that the conduct OF Morton BLISS Co. had subjected
thom to much hostile criticism but as the affair
IN the hands OF committee u examine into their con
tract and liabilities the Of bankers tho
gentleman preferred TO await the report Tho com
mittee consists OF Mr. Jacob D. vermiyc, of tho Mcr
chants Bank; George S. Coo, of the American Elk
change Bank. and John A. Stewart, OF tho United
States Trust Company.
winslow, Lanier * Co. havc boon prominent men,
bers oil many government syndcatos One oil part
ners was visited and who desiring to DO rcttceut
about tho late action OF the Syndicate enough was
elected to warrant tho assertion that tho alleged
breach Of faitn Of Norton Bliss Co. will
tho courts Tor judicial action. equity
where partnership rights would have 10 be clearly dis
L cussed will doubtless grow out OF thus difficulty.
In conversation with members OF law firms said
to be already engaged in case the
discover that actual proceedings have boon
mcnccd. At all events, tho quarrel among the mag
Mates OF tho syndicate ana The banks topic for
discussion in financial and business circles, bids
fair to lead TO some developments In regard the way
tho business has cone that may Of absorb
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