The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-11-29
HOW IT WORKED.
The Man Who Engineered the
Big Gold Deal
By Which the Syndicate Cap
tured the Bonds,
TELLS ALL ABOUT 1T.
Uncle Sam in the Business Of
Furnishing
TELLS ALL ABOUT IT.
Investment for Rich People Who
Want Something Safe.

New YORK. Nov. 29-The most fam
Gus man in Wall street today is John A.
Stewart, who engineered the gold deal
b. which a syndicate secured the $5O-
100000 in bonds issued by the gov
eminent Mr. Stewart was interviewed
todas- on how he did it. Stewart has had
many successes IN his long career in New
YORK finance. Away back in the war
time his reputation for shrewdness and
patriotism was so great that Secretary
Chase induced him to sacrifice his busi-
ness and become the treasurer at
New York. He has managed a good
many millions Of his own for years and
years, and has done it quite we'll And
he has managed many more millions for
other people as president of the United
States Trust company.
But this last IS the biggest and most
successful thing that he or any other
man has done ia Wall street in years;
one Of the big financial operations Of the
worlds
"How did you do it, Mr.. Stewart? There
are many people who understand all
about how that sort of thing is done
There are many more who think they
understand il. Then there is great
public that doesn't understand it and
simply wonders How can d man raise
s5OOOOO0O to do anything, however ceI-
tain the profit?'
Mr. Stewards answer to the question
put to him by the reporter is worth read
ing.
deal Of worry and good deal Of anxiety"
he said. The first point, after / had
made up my mind to help the
government was 70 look around
and see where the gold was. You see,
the point was to get people to 20
in who had gold and WOULD not draw on
the government for IT, Well, 1 got be-
fore me a list OF the banks that have
large quantities of gold.
'.Then lad to select out Of that list
those who would use their gold if they
went IN, who wanted to invest that gold,
who would take the amount Of the bonds
that we're assigned to them. and lastly
and most important Of all in a way. who
would have confidence enough in those
who are at the head Of the syndicate to
trust to their discretion in bidding"
DO you mean that these men went in
without knowing how much they were
going to bid?"
Certainly. the most Of them did. They
trusted 4bsolutely to our judgment But
after had make q list Of the names of
thOse I wanted, I began with those who
wonld be towers Of strength, if | sue
ceeded in getting them-such men as
Pierpont Morgan. i went to see them
first and talked il over and got them to
went to the others and got them in.
lone of the great difficulties was to
keep out those L did not want When
the news Of what we were about got out
there was a rush of people whom it was
hard Tor me to refuse did not want
them for one reason or another.
''You can see how much diplomacy
and going about and urging and sooth-
ing this required.
.sBut remember this, there never was
I. III.
the syndicate two or three times as much
money as was necessary. There was no
trouble about getting subscribers. The
trouble was to ge- those who had gold
and would consent to the conditions I
had to make.
tant OF all was the matter OF deciding
what to bid This was where experience /
aud a study of the bond market and a
possession Of the channels Of informa-
rion came in most strongly. If we bid
too little, why we would lose all cr part
of the bonds. If We hi5 too
much, why the profits of the syndicate
would be gone. 1t was necessary to
know just what bonds were worth in or
der to guard against failure IN the latter
consideration And in the former con-
sidera.iCn It was necessary to know just
about what others would bid. Now,
had no means of knowing absolutely.
Bu.. sitting here and going about, the
Information came, and / was bic to tell
with a great deal Of accuracy what
would be bid 1t is 50 in all matters Of
this kind II man wants to win, he
must be able to get at those things accu-
rately beforehand He must have his
fingers on the pulse and know just how
II is beating
We'll, the syndicate was completed
aud we put in our bid and it Won.
1t did not take US ten min
uIes TO decide what to bid. We /
held a cons sultation and in just about
ten minutes the consultation was over
and our decision was made. Now. it is
fortunate thing all around that the bonds |
are held by our party. When they come /
into the market there viii be no cutting
of prices. The holders Of bonds can
agree among themselves as to the price /
to be asked. And the fact that the syn
dicate holds all means at least a quarter /
per cent more profit.
There viii be a good profit in these
bonds. The most of them, I believe,
viii be held by the persons who have |
subscribed in the syndicate. But many
Of them viii be sold and there will be a
demand for them a. government bond
is fine investment, even if the premium
does cut down the rate of interest. The
profit for he syndicate will not be large,
but il Will be a substantial profit