Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-03-15
COMBINE OF CAPITAL.
Great Britain and Chicago Wealth
/ Strike Hands for Profit
THE DETAILS OF A NEW SYSTEM,
Eminent English Finsnciers Interested in
MoneY-Making Here.
STARTING OUT WITH JUST $5,OOO,O 900
ESPECIAL TELEGRAM TO THE DISPATCH. !

ESPECIAL TELEGRAM TO THE pIsPATcH.I
CHICAGO, March 14-''The Transatlantic
Mortgage and Securities Trust, Limited u
is the name of another colossal financial
syndicate, the organization of which has
just been perfected here by the signing Of
papers to which the names Of some of Eng
lands greatest fnanciers had previously
been attached. 1t is the first syndicate ever
formed with o purely American board
which will first pass upon all American in
vestments and which will control the oper.
ations of the concern in this country.
The nominal capital of the new syndicate
is $4,000, 600, but it has practically un-
limited resources behind it, and it is the
intention of the founders to draw upon
those resources whenever a promising in
vestment justifies. The Marquis of Twee-
dale is the head and front of this syndicate,
and among the foreigners associated with
him are Sir John Pender, Gerald Balfour, r.
w. Duff, member of Parliament; Wm. Finlay-
son, of Glasgow, Edwin, Guthrie, of London
and Manchester; Walter w. Gray, of Pres
tonkirk, n. B.; j. Durham Massey, of
London; G. B. Wieland, of Edinburgh;
w. P. Fullerton and William Jackson, of
London, and Robert Fowley, formerly of
the eAnglo-American Packing Company, Of
Chicago, but now of London. Nearly every
man in the list is worth a million, while
several are worth great deal more.
Prominent American Founders.
Among the American founders are Direc-
tors Calvin Goddard, President of the Chi
cago and Southside Rapid Transit Company,
better known as the Alley L Road; w. A.
oT ii fo
Insurance Company; Gilbert Montague,
-four and grain dealer; Charles H. Kingman,
formerly of the wholesale firm of Gray,
Kingman & Collins; H. G. Speer, the
banker, and Frank S. Weighley, of the law
firm of Weighley, Bulkley & Gray.
The bankers are the Commercial Bank of
Scotland. with its branches in London
and Scotland, and in ali probability
the First National Bank of Chicago. The
solicitors abroad are Messrs. Ashurst, Nor
ris, Crisp g. Co., and in this country the
firm of which Mr.. Weighley is the
senior member. Messrs jackson, Gourley,
Taylor and Macrae, OF London and Glasgow,
are the auditors, and the offices of the con-
Germ are at 81 Lombard street, London, and
in the Home Insurance building in Chicago.
The trust is incorporated under the COM
panies acts, 1S62-1890, whereby the liability
of each shareholder is limited to the amount
of his share, and the capital of 81, 900, 900 is
divided into Toe, 600 shares, of 910 each,
with power to increase and issue debentures.
There has been considerable trouble in COM
pieting the American board. In several
cases heavy Chicago capitalists had agreed
to put their names to certain documents,
but at the last moment were compelled to-;
refuse because of legal proceedings tying
up their available securities.
Only Spot Cash of Any Weight.
One gentleman had agreed to sign at
o'clock on certain day, but several hours
before the time set he was served with
notice Of injunction that drove him to the
hypothecation of nearly 100000 in bonds
and other securities. The transactions with
the American board have all been on cash
basis, and in no case has any representative
save spot cash carried weight.
1t is set forth in the prospectus of the
new corporation that it is founded for the
purpose of associating British and American
capital in selection of investments which
can be obtained in the United Kingdom,
America, and elsewhere, through the
cooperation of its directors and share
holders, but the real meat and true index to
where the new corporation will operate
is in the following: '1n the Central and
Western States of America high rates of in
terest prevail; their growth and prosperity
and the increase of population should afford
industrial enterprises which has hitherto
been SO remarkable"
Under the contracts now signed, sealed
and delivered the American business will
be submitted to the investigation and ap-
proval of the American board, whose SUPER
vision and experience are regarded as in
valuable in the selection of investments for
the corporation, but no business will be
carried out by them except within the
limits authorized by the London directors
or under their sanction.
A New Plan of Procedure.
This is on different plan from that fol-
lowed by the foreign financial syndicates up
to the present, as heretofore the bulk of the
heavy transactions have been direct. The
new plan is supposed to establish bond of
sympathy between the foreign capitalists
and the great American public through the
medium of the American board
The corporation will also undertake trusts
and agencies of every description; the issu-
ing and guaranteeing Of capital for COM
panies; American municipal tramway,
and other loans; the conversion
of industrial businesses into Joint stock
the negotiations and guarantee
ing Of mortgages and other investments as
to both principal and interest and other
objects Of financial character, and while
acting as trustees for debenture holders and |
as agents for the payment of dividends and |
interest on stocks, shares, debentures and |
other securities, the corporation will also |
seek to secure participation in issues, syn
1icates and other financial combinations |
which furnish large and rapidly increas-
ing field for the profitable employment of |
money and credit, thus combining the |
classes of business tranacted by such we'll |
known companies as the following: The |
Assets Realization Company, Limited, |
London and New York; Investment Corpor- |
ation, Limited; Municipal Trust Company,
Limited; The Manchester Trust, Limited;
rhe Trustees, Executors and Securities Insur- |
ance Corporation, Limited; The Debenture
Corporation, Limited, and the Realization |
Debenture Corporation Of Scotland, Limited |
A Comprehensive Combination.
In this respect the corporation is one Of
he most comprehensive ever formed. 1t
an buy and hold house and lot on some
back alley, or invest in submerged lands
lown in Florida, but anyone with any
Inspect it of such intentions. The real
object is to secure control of gilt
sdge American properties, including
establishments, steam and
itreet railroads, gas and water plants, etc.,
md local gossip has it that the wires are
Ilready laid for the absorption of certain
7aluable Chicago franchises, the owners of
which have been looking for purchasers.
1t is not definitely known that the Chi
ago Compressed Air Company people have
,een hawking the exceedingly valuable
ranchise recently granted them, but it is
umored that Promoter Bacon has had sew
raj satisfactory conferences with members