The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-19
TIE NEW SYNDICATE'S BID.
BSCRIBING FOR $3.50, 900. 900 or THE
rom PER CENT bonds.

Inc neWs or the DID or inc FIRST National
Dank in behalf Of n syndicate composed Of
| tho bank and associates. for the entire amount
| $3.50 O00l OF four per cent. bonds offered by
| the Treasury Department on Wednesday for
the purpose Of refunding tho ten -forties Of 1868
and 1862 was tho event Of the day in Wall street
| yesterday. Stocks went up and were more nc
| lively dealt in than for several days previous.
| Tho market price OF four per cents advanced
| from 100S to 1905. In London they advanced
from 1902 8 to 1903. Soon after business began for
| the day rumors Of differences among the MEM
| bers Of the syndicate became current. and be-
bore noon II was generally known that the
bankers who were parties to tho bid were In
volved in serious muddle Then despatch
cnme from Washington announcing that
t4s.0O0OOO Of the bonds offered had been sub
scribcd for before the syndicate subscription
was received on Thursday afternoon. Another
| despatch said that the syndicate had also made
bid for tho $40 900 600 Of SO certificates to re-
fund which the department held the balance OF
the, issue Of four per centsi and that this bid
| that tho syndicate had been formed with the in
| tenton OF controlling the 500 100000 Of four
| per cents required TO refund the ten-forties
| and that the failure TO obtain about 500 900 900
| had seriously impaired the plans. and caused
| discontent among it, members.
| syndicate are the First National Bank and the
banking q rm Of Fitch & Hatch each Of which
claimed that they would take under any cir
eumstances. no matter what others might do.
| l. seems that they then called upon other lead
ing banks and bankers TO unite with them in
| obtaining possession Of the entire issue OF four
| per cents. Some Of their associates. who put
their names down as PARTIES TO tho bid IN
| amounts Of from S5OOO.O00 and upward, said
Yesterday that they did not know ut the time of
| doing 30 who all Of their associates were. nor
did they know yesterday. When the subscrlp
tons aggregated over 5000 0O0O00 the suhscrip-
| ton Tor tl3O.OoO.OO0 bonds and slouOOVO1 $40
/ certificates was srut on 10y telegraph 10y the First
| National Bank. When the reply came that the
bid for bonds would be accepted. but that
| fiS,Ou0O uO had already been subscribed for,
! about letting the $40 certificates 90 there was
| commotiOn among the members Of the syndi-
cate. II WAS evident that some persons who
| were coSni1rt oi me proposed bid OF ihesyndi-
| cate had made use ~ this Information. In fact,
1t was openly charged BY some members Of tho
syndicate that some OF the other members had.
subscriptions for their individual accounts. 1t
was inserted Tint well-known German house
| IN Brond street whose syndicate quota was
t5,OmoO0. had made personal subscriptions
Tor sl,JOOMQQ, AMI that q Govcrnment bond
made bid .or s9OO00Oo Among the bids
made outside OF the syndicate on Thursday are
those Of The Continental Bank s2.OOO.OoO Bank
OF New York tl2OO0 900: Bank of the State
OF Now York sluOO0O0O: c. :. Wormser.
sl,5O0.Oo0. AMI l.. Won Hoffman 4 Co.
The syndicate sent word 10 John sherman
that they expected to get the s4O 900 900 Of $40
certificates. and giving the reasons why they
thought he should accept their bid. The reply
came that. bcin- doubtful as To whether no
should accept H. as his circular relative to tho
disposal 1T the certificates did not Contemplate
any such wholesale disposal Of them. he should
refer the question To the Cabinet. At q meeting
he was about to attend. Pending tho settlement
Of this question. the members OF the syndicate
turned 10 q settlement Of their own internal dlf-
tl'ulues In view 81 the large dimnution in
the amount VI bonds TO ho received. Ms COM
pared with the amount they expected. nearly
all Of the smaller subscribers claimed that the
their original subscriptions The computation
mn been made IN the basis oil rrreivlng nearly
| $50. uOO.OGO Of bonds. as the $40 ccr-
tncates arc redeemable in four per
cent; bonds upon prrscntai! ION. But the
should have their s2jOOnO0O each before any
division pro rata should le made among the
amounts any way. some Of their associates
thought differently. and. as IN " were anxious
mum profits Of 81 80 0O6 which attend the
TRANSACTION they urged the justice Of their
ever we may stand among ourselves, tho Gov
ernmemt Is all right. having disposed OF all its
Whether the First National and Fisk 4 Hatch
VIII Yeld to pro rata dislribut lon
on 1t the Sse n Susne an they had
given no indications Of doing So and
certificates Of deposit for the bonds they would
receive and hold them. But tho other mombers
made this same argument for their claim, Ms
| their suhscr ptiOns were made al the same time
with those u the two principals.
The members Of the syndicate and tho
!
rately a. can be leUrned. a. follows; Winslow.
lanier & Co., $4,000 900; J., & W. Seigman.
Kuhn. Loeb 4 Co.. slOO00OO0: Metropolitan
Bank. so 100000; August Belmont Co.
slOOOl.WO; American Exchange, tlOOOOnO0 ;
Park National Bank. Importers and Traders
Bank, United States Trust Company, Bank OF
snE 'S o tho RSpabcr asG HacR Foot
s5,0O0.OO0 each the Maverick National Bank OF
Boston, tl0OOoOOO; and Foote 4 French and
other Boston bankers $4,000. 900. total Of
tl5j.OO0.u0O. in addition To the t5OO00,ooO Of
tho two PRINCIPALS. In event Of their holding
sherman accepts the bid for theslO certificates.
these smaller subscribers would get about IS
per cent Of their subscriptions II is under
stood that the two large dealers in Governments
iist-Drrxei Morgan & 70. and Morton, Bliss
n Co.-0ro interested respectively IN the sub
scrlruops OF tho selignans and Winslow.
In estimating who will be purchasers Of tho
large amount OF four per cents that Will soon be-
; | IN the hands of the syndicate, Il Is calculated
that about sf0,uuOOuO Of tcn-fortlcs are held by
4 | national banks on deposit with the department
| NJ Washington. which Will have To hr surrcn-
dered. and replaced 10y four per cents Other
institutions when arc required 10 Keep Gov.
crnments In their vaults are large holders Of
ten-iortes. and. OF course, will now have TO sur
, Mr. sherman issued n circular yesterday NJ
ternoon resembling the circular of April lG Of
iering the four cents NJ par ana Qne-n0lt OF one
per cent. with accrued interest less one-eighth
Of one per cent. commission on subscriptions
Of over 81 900, stating that all OF the bonds had
( | been sold. H. the same circular he mobiles the
circulars Of March II and 90. relating 10 the SO
/, | cert ilcatcs as follows:
the ten dollar rounding eerhncates WI hcreagcr b,
cNChaurri for lawful money 300 sums not 20 exceed sts
at one time, ~ Toe Treasurer and Assistant rtasur N
o' tle United states aui hN public officers bonded l
that purpose They Will not BE- issued hereafter urou 90,
y ! certificate Of any National Bank dcpositary COMMITS
sluus on such exchanges heretofore tr hereafter mad,
will bee allowed al the rate Of onc,ght or one cent
4 aggregate oi 5000, without regard 10 the perot
n which such exchanges are made. nepartmen crru
lars OF March - aud d. 1879 are modified accordingly
) Mr.. sherman has also issued n call for tlG0
y 100000 Of the ten-forties which includes all o
= tho coupon bonds lsiO0O0 0OOl and all of the
o registered except s24.OOOOOO SlO.OOOOuO hav
e. ing been called previously. There will be II,
:. further funding operation until 1881.
!: WAsHINGToN, April ia temporary hitcl
y in the arrangements between the New Yorl
!, syndicate and John sherman relative to tn,
/, subscription OF $l50,O0O,O0O OF thu four Del
It cent bonds occurred to-day. Tho repre-
T. senntivos of tho syndicate visited Wash
:. ipgton and insisted that the forty. mil
! lions OF ten-donr rounding certificates
ii should be given the syndicate ms n condition Of
:, its taking the larger amount of four per cent
\ bonds. Mr., sherman said that he should retaiI
], control OF the rounding certificates that the'
- intended to benefit the working classes wh'
desire 10 invest their small savings in Govern
ment securities. To place the refunding cor
tihcates in the hands OF the syndicate wOul,