New-York tribune., 1879-04-09
A DAY WITH THE BANKERS.


claims, Will be given to-day by the Secretary.
DAY WITH THE BANKERS.
! GIVING 4 HEARING TO THE CLAIMS OF TIE LONDON
sYNDICATE-rHE sECRErARYs PLANS FOR TO-
DAY.
! That the present visit OF Secretary Sherman, who
reached this city Monday night, has any special
! significance in relation 10 either the funding
operations Of the Government. OF the adminstra-
tiOn of tho Custom House, did not appear manifest
! yesterday in any thing said or done By him. Early
| IN the dag he went 70 the Sub-Greasury, where no
received the calls Of bankers and friends Many OF
! those who called wished merely 10 pay their
| respects to him. Among them were Charles NJ.
| Fry, pres ient Of the National Bank of Now-York;
| II. c. Fahncstocl yice-presdsnt Of the First Ma
| tiOnal Bank; and Edmund d. Randolph, president
OF the Continental National Bank.
! During the day Secretary Sherman held a consul
! tatiou with members OF the former London Syndi-
/ cate in regard to thcir claim under prevous con-
! trect to 10000, 600 Of the per cent bonds by
! the subscr ion Oh Friday Of the National Bank Of
Commerce for $40 000,0 600 Of thes bonds the SUBJ
/ scriptions were declared closed but 10 was claimed
/ by tho former Syndicate that they entitled,
under the terms Of their contract, To the privilege
Of calling for $1,000, 900 for the May and June
options allowed them There is sad to be no differ
eucc between the Secretary and the present Syndi-
! cate I'm regard 20 the recent subscription and the
! claim Of the former London Syndicate was settled
| without Glliiculty. The claim for the amount Of
! the May and June options will be allowed, It is un-
derstood, by the Secretary. Members of tine London
! Syndicate expressed yesterday their satisfaction
with the couiso pIIsuod in regard to tho division Of
the bonds.
The Secretary, after the consultation was closed,
/ remained at the Sub-GFeasury until etter p. m,
when he returned to his hotel. In the evening he
was given private dinner party lie declined to
say anything in regard to the object of bis visit.
which will continue for two or three days longer.
lie did not deny the fact of conference with
members Of the London Syndicate, bur refused to
reveal his probable decision He viii visit to-
day tho Custom House and hold there a
! ference with the Collector in regard 10
| tam changes in its administration. Collector
! Merritt, who has been absent from the city for
several duys was expected 10 return 20 the city asu
night.
DETAILS OF THE CONFERENCE.
Tho most important conference yesterday was
with the members of the Syndicate having the ex-
elusive right 20 dispose of / per cent bonds in
London-and who claim that according TO tho
| terms OF the contract they 9re entitled to S10,-
coo 600 of the per cent bonds applicable TO re-
decming the 500 loan before the funding of the
latter was declared closed. The contract was
!
Belmont for himself and n. u, Rothschild & Co..,
Of London; Morton, Bliss & Co., for themselves
and Morton, Rose & Co., of London; j. & w.
Seligman for themselves and Seligmsn Brothers, Of
London and DreXel, Morgan 81 Co., for themselves
and J. s. Morgan & Co., Oi LOndol. At
tie conference yesterday thero were pres
sant George B.lss August Belmont. jesse
SeAgman, and L. K. Fabri, for Drexe, Morgan ~
Co. 4 formal claim was presented TO Secretary
Sherman for the Nav and June options under tho
contr'ct of 80, 100000 each, to which it was in
sisted that the Syndicate had a just demand undor
the contract The oTlgna! contract was produced
and read, il IS Understood, by member, who SAID
that the entire claim was based upon Sections 2
and D. The former provides that the SYM
dcate should subscribe for Sl0.O0o,00O firm,
with an option ~ subscribe for S5,000,0O0 on the
first days Of March, April, May and June; tho
Secretary beiHg empowered, III case ot l.lllfe %
exercise the option TO declare the contract forfeited
at any time thereafter Inc htth section provides
that the contract shall remain IN force ana effect
until june 80, 1879. unless sooner set aside as
Bv the terms Of this written contract it was
claimed that the Syndicate bad fulfilled al its pro-
visions and tina the Treasury Department hal no
legal Tlgh, 10 set II aside II Was elansd ;hdt th9
last subscription OF % 000, 900 made on April
l. aud that the contract contiuIcs Ia fofce uutil
June 80 he Syndicate should Lave had lts May
and June options reserved before all the per
cent bonds applicable to the -unlng OF tie 5-2os
Secretary sherman assured the members of the
| Syndicate that nc had no de ire 10 act unfairly,
and IL he had placed an IMPROPER Interpretation
upon the coz tract be would cheeTtully redress the
! wrong As the contract vas now interpreted tho
| SYNDICATE claimed the legal right to the May and
! lime subscriptions for TlO,O0U,U0O, and yet, ac-
coIding 10 the second section, it was not compul-
sorry Ior them 10 subscribe Tor any bonds alter the
| opening subscription OF SlOOOO,OOO.
| Ii was explained that option contracts were of
| daily occurrence, aud that among hhanclai men
there could be 10 possible dispute as to what option
Tie Secretary finally decided that under literal
construction OF the contract tle Syndicate was en-
I.I kl.if gffn al he
! difficulty to-day.
COMMENTS oS THE sEcRETARY's COURSE.
A member Of the London Syndicate said last eve
ming: 81 am satisfied that Secretary Sherman
means to do right in all things Before the Bank
of Commerce made its subscription for $40 900 900
on April we had decided TO make an additional
subscription of SO 600 GOO for the Syndicate and
the order was sent by tcleg aph to a member Of the
Syndicate then IN Washington. When he reached
the Treasury Department the subscription Of the
Bank of Commerce had been received, and our
Offer was declined. As there nothing in the
contract that could destroy option subscribe
for So 900 600 month up 10 June 30 except our
own neglect, the closing OF the funding OF tho
5-2Os did not deprive rs of the SlO,00oOtO due On
our May and June options. The mistake 10y toe
Secretsiy from bis mls"Onceptlon uf tle true
| meaning OF the technical tenn option. The sale II
| 4 per cent bonds had been rapid of late
that even the Secretary was surprist". When
| the contract was executed, IN January, we wanted
To have Il provision iHseI 4 giving us tae llsbt on
june 30 Of Subscribing s$ooOOo,OOO. lhe Sec
! retary thought it unnecessary, ana he re-
marked lsughiugly, Don't be alarmed, catlemen,
there will be plehy Of per cent bonds for sale at
thai time" ard We did not press ;he matter. The
nTohal ality Is that the present trouble will be ad-
| ,usted TODAY by the Bank Of Commerce giving up
| $40 900 OO0 ofIts $40 200, 900 subscription 10 the
| London Syndicate. THIS the only way out OF tho
| dlficulty The Secretary has no power To issue
per cent bonds outside OF the 800 funding amount
unless he SHOULD anticipate the lO-4O reinnd.ng I;
aud he will probably fall back upon the Bank OF
; Commerce subscription. He cannot transfer to us