Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-04-23
THE PIRATES FRAUD
Shermans Contract with the Syndicate for
the Purchase of Four and u Half Per Cent.
BondS--Only Ten Millions Contracted for
Instead of Fifty Millions as He Falsely
Claimed.

the Fufcnase Oh -FOUR anu u Hall Fer Cent.
BondS--Only Ten Millions Contracted for
Instead of Fifty Millions as He Falsely
Claimed.
WASHINGTON, April 22.-The following is
full copy of the recent contract entered
into by Secretary Sherman, of the SYNDICATE,
for the sale of ~ per cent. bonds.
This agreement, entered into on the nth
day of April, 1878, between the secretary of
the treasury of the United States, of the first
part, and August Belmont & Co., of New
York, Oh behalf Of N. NJ. Rothschild & Son,
of London, and associates, and themselves;
Drexel, Morgan g. Co., New York, on behalf
of J. S. Morgan g. Co., of London, and
themselves; J. w. Seligman & Co., Of New
York, on behalf of Seligman Bros, of Lon
don, and themselves; Morton, Bliss & Co., of
New York, on behalf of Morton, Rose Il Co.,
of London, and themselves, and the First
National bank of the city of New York.
Witnesseth, That said August Belmont &
Company, on behalf of n. M. Rothschild &,
Sons and associates, and themselves, hereby
agree to purchase from tho secretary of the
treasury $4,125,OOO Of the ~ per cent.
bonds of the United States, issued under the
acts of July l4th, 1870, January Goth, 1871,
and January l4th, 1876;
And that Drexel, Morgan & Co., on behalf
| of j. S. Morgan & Co., and themselves, agree
| to purchase 81 1925, 600 of said bonds;
| And that J. w. Seligman & Co., on behalf
Of Seligman Bros, and themselves, agree to
| purchase 81 ,625,( 90 of said bonds:
| And that Morton, Bliss & Co., on behalf Of
Morton, Rose & Co., and themselves, agree
to purchase 81 ,625 900 of said bonds;
/ And that the First National bank of the
! city of New York ngree to purchase 81 1000
600 of said bonds, making the total aggre-
gate of $1O,O0O,OO0 of said bonds OH terms
and conditions following:
First. The bonds covered by this con.
tract shall be sold for resumption purposes
Second. The parties of the second part
shall have the exclusive right to subscribe in
the same proportion to each of the sub,
| scribers tor the remainder of the $4,000,
600 of four and one-half per cent. bonds Of
the United States, authorized to be issued by
act of Congress aforesaid, but the amount
to be SO subscribed shall not be less thar
$5,000,OO0 for each and every month aftel
the present month of April.
Third. That the secretary of the treasur,
shall not sell, during the continuance of hi
contract, any bonds other than such as b,
the act of Congress may be provided to b
sold for the payment of the Halifax o
Geneva awards, and the 4 per cent. consul
of the United States, aud those only for re
funding purposes, except by mutual agree
ment of the parties hereto.
Fourth. The parties of the second par
agree to pay for said four and one half pc
, cent. bonds, par and one and one half pc
i ;,ofn fx>1 ~
of application for delivery of said bonds i
gold coin or matured United States gol
coin coupons, or any of the six per centun
!, fve-twenty bonds heretofore called for II
demption, or in United States gold ce1
tiicates of deposit issued under the act {
March Sd, 1873, or in geld coin certificate
) of deposit of authorized designated depos,
$ aries that have complied with the law.
Fifth. The parties of the secon
: part shall receive in gold coin commissic
D of one-half of one percentum on all bono
& taken by them under this contract, as a
lowed by the act of July 14th, 1870, ar
shall assume and defray all expenses whie
may be incurred in sending the bonds, CO.
\ pons or coin to the treasury department
Washington, including all cost Of maki1
. the exchange bonds, and shall also
. charged with the cost Of preparation and
9 suing of bonds.
: Sixth. No bonds shall be delivered
d the parties of the second part, or either
9 them, until payment shall hove beon ma
! in full thor ofor In accordance with the teri
= Of this contract.
(Signed) John Sherman, Secretary of t
Treasury, and Messrs. j. g. w. Seligman
Co., Morton, Bliss q Co.. August Belmont
Co., the First National bank of New 70
n citv DraYel MORGAN 4 Co. and witness
). BY Assistant United States Treasurer Thorn
Hillhouse and E. J. Babcock.
y Mend Stfttit kack:.