New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-19


graph and George +. Baker, president of the First
National Bank, carried the certificate and formal
bid in person, which he presented TO Secretary
Sherman Yesterday morning. The first response TO
the formal offer, as received in this city, was that
the Department would accept the bid of $3.50. 000,
600 subject to all earlier genuine bids amounting
TO about $39000,0O0, giving to the Syndicate
Sill 600 600 As 10 the bid for $40 000, coo fund
ing certificates the Secretary held that these were
intended to he kept for popular subscriptions
among the people, and not for banks or other cor
porations, to be taken in body. The earlier sub
ecrptons Of Thursday were understood to have
been by the following Institutions
Bank o. the state of NewYOrk ......... $4,000 900
Bank # Newly ok 1OOOOOOO
First National Bank 10000 600
other subscriptions Observation-Disclosures. 100000
S39OOOOOO
EFFECT OF THE sECREIARYs ACTION.
When the decision of Secretary Sherman became
known there a feeling Of dissatisfaction among
! the members of the Syndicate, and in general but
informal consultation it was held that Secretary
/ Shcrmaus position was untenabc. One Of thcmcm-
Lcrs said that the subscription had been made in
accordance with the exact terms of the Treasury
Department circular. and that word should be sent
that the bid meant 500, 100000 or nothing at all
The circular declares: Ten dollar refunding Ger
tifca,es may be converted upon their surrender to
the Treasurer OF the United States at Washington
into an equal amount Ofthe per cent bonds herein
described, but premium of One-half Of / per cent
will be required of all such refundIng
certificates issued upon the certificate Of
a National bank depository" According
10 Tn il is claimed that nothing said that even
IMPLIED the receiving of single subscriptions only
the funding certificates. 1t was also urged that the
retention by the Secretary of SiOOOO,OO0 four per
cent bonds, ~ suggested, would defeat the object
Of this large subscription, which was 10 remove
HIM from the market rs an isSuer of operator in
bonds.
dispatch was sent to Mr. Baker TO present to Sec
Rotary Sherman that the subscription had been made
for all outstanding four percent bonds based upon
the circular OF April lG subject to all its provisions,
without any discount or commission, and that the
subscribers felt that boz the law and equity
upon their side III insisting upon literal intcTprc-
tatOn of the circular. After consultation III
Washington, the Treasury Department made an
offer that the Secretary be permitted to retain the
SiO0uO,OOO Of funding certificates aud 10 issue an
order restricting the sales of funding certificates to
sums of 100 This proposition was not satisiac-
tory 10 the Syndicate, aS II was claimed that It's
total amount of bonds under a bid for $50 O0O.-
600 would be only Sllj,OOOOOO-a decrease Of
S7JOOO.O00
Tie next dispatch was that the Secretary had
gone 10 a regular meeting of the Cabinet, and that
the bid would be brought up there for action. At
the conclusion of the meeting the Secretary still
adhered 10 10 his position aS tar as the funding GER
tiiicatcs were concerned Dispatches were received
from and forwarded TO Washington every few nlH-
utcs. Among the callers at the First National
Bank at different times during the day 10 learn the
result were President Potter, OF the Mavericks Ma
tOnal Bank of Boston; President Fry, of the Bank
of Newly OTk A. = Hatch, of Fisk ~ Hatch and j.
W. Ellis. of NIuslow, Lauier 4 Co. About > p. IN.
a dispatch was sent stating that if the Secretary
would award the SIG, 600. 900 funding certificates
as bid for, il would be agreed that ne might
continue the sale at the Treasury Department and by
postmastcTs but not through Assistant Treasures.
with the provision that the certificates should be
funded only in four per cent bonds of the dcnOmlna
tons on go and 500. the object beng to get the
certificates in the possession of the Syndicate.
Another proposition was that the Secretary should
award to the syndicate Internationally $4,000.
600 of the funding certificates the Department 10
retain Sl1jGG,3OO of the four per cent bonds for
their conversion from sales 10 TlO investors. IL was
also claimed that the prior subscriptions of Ihurs-
day should Ice pro-Tatcd. The matter WIS left in
tins condition az p. H., when the members OF the
Syndicate lett the street
A conference was held yesterday morning az
! the banking Office of Kuhn, Loeb * Co., al which
there present besides the members ul the firm.
| john a. Stewart, president of the United States
Trust Company, George :. COc of the American
Exchange Bank, {. T. Christensen, of the Bank of
Nevada and others. After discussion IL was de
Cidcd by ali 10 adhere 10 their subscriptions 10 the
general Syndicate bid for Sl9O,O00,OOO. Regret
expressed at the small amount allotted TO each
! institution.
While the original subscribers whose names are
given above, compose the Syndicate, II is under
stood that DreXel, Morgan ~ Co.. Morton, Bliss Il
Co., and one or two smaller banking firms. have an
interest IN the large subscriptions made by WiuslOW