Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-09-23
SYNDICATE DISSOLVED.
Each Member Receives Check for His
Share of Profits.
Now Look Out for Another Bond Issue by Inc
Government.

New York, Sept 90 The Herald says
The governn eat bond syndicIte vas for
mally dissolved, Y, sterday This was an
| nounced by several OF the members, and
it was further indicated by the fact that
checks repr. senting the amount OF The
profits were mailed to the participants.
The checks were accompanied by a
notice marked private and confidential.
The Herald has obtained the fgur' 5,
showing the exact amount allowed for IN
terest and also the net profit in addition.
t will DO seen that the profit WAS not 81
large as was estimated by great many.
| This IS due in great measure to the
| fact that the expenses of regulating ex
| change were much heavier than the man
| ayers of the syndicate counted on, owing
to the scarcity of grain and cotton bills,
which Usually come into the market
much earlier than they have this year.
The reason given for the dissolution OF
The syndicate at this time WAS that The
government has no further need for its
services. This was regarded on Wall
street as favorable sign. and many de
clared that it indicated that the syndicate
believed the gold shipments were nearly
over for the time being.
In speaking of the gold situation,
Lazad Freres, who are prominent drawers
OF exchange, expressed the opinion that
unless something unforeseen happens
they believed that there would probably
be few or no shipments for some time 10
come
The members # the syndicate put up
500, III, 800 for tho s62, 81, 900 in per
cent bonds that were issued in February,
the purchase price being 1Gi 40. The rats
az which they were offered to the public
was ll2 % or a difference of 26 per
cent, out Of which must he taken the
three. quarters Of | per cent. commi: sion
charged by Mcssrs. J. Pierpont Morgan
and August Belmont, the managers of
the syndicate, and the expenses of regula-
ting exchange.
The statement made to the members of
TIL syndicate, yesterday, shows that they
we're allowed per cent for the period
covered, AND that there remained a net
profit by the deal of 40 per cent The
total profit of the transaction was there
fore 8 65 per cent the expenses over and
above the commission Of the syndicate
managers, amounted to so per cent
The interest allowed, IA per cent Z.
amounted to 81, 1879, 500, and the profit of
9 per cent amounted to So, 100, 757, or
a gross profit Of 81, $50, 3i3 The com
mission of the managers, three quarters
of per cent, estimated upon the basis of
the money advanced by the members, was
s4SS, 3Sl. If 1t were estimated upon the
basis of the amount OF the bonds them
selves. the commission would be some
what less.
OF course there was a large profit to
many Of the individuals of the syndicate
who chose to take bonds for their own ac-
count and place them upon the market
The price has ranged above 1870 for some
time.
The winding up of the bond syndicate
signifies that the managers consider their
contract with the government to protect
the gold reserve at an end, although as
the managers stated several days ago,
they will continue to use their influence
to keep up the reserve as long rs it is in
their power. But they regarded their
contract as completed when they made
the last payment fer the bonds in June
last.
1t was denied, yesterday, that there was
any truth in the report that MCssrs. Nor
gan ana Belmont nau arranged WIN
banks throughout the country to deposit
$50, 600. 600 in the treasury in case they
may be called upon.
The trip of Assistant Treasurer Conrad
n. Jordan to Washington and the sudden
departure of Secretary Carlisle frorn
Washington Were believed by many in
New York to have some significance,
taking in connection with the dissolution
Of the bond syndicate.