The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-15
PROFIT ORIBANIzERS
MILLIONS MADE BY MEMBERS OF THE.
! soNO SYNDICATE.

The Sum of Sd.34a.da3 Distributed By
NIessrs. Morgan S Co. Among Wall Street
Men-Contract Carried Out-Handsomo
j Profits In Addition Probably Realized.
Tho great gold syndicate which under
took TO preserve the integrity of tho treas
ury of the United States has dissolved, and
tho profits havo been divided by AIcssrs. ].
2. Morgan & Co. Tho greatest caro- has
cisa9xoreised TO prevent publicity and 1t
is tSiilcult to obtain all of tho fucts. Each
OF tho "a bankers and banks participating
IN tho syndicate has received II check rep-
rcsenting its share Of tho profits with a
motto of explanation and statement of the
transaction But perfect secrecy has been
preserved regarding the allotment OF
ponds, and no member of tho syndicate
Knows what other lneInbers received.
1t will bo remembered that during tho
desperate emergency that confronted tho
treasury last spring hIoSsrs. Morgan and
belmont entered into u contract with Sec
rotary Carlisle under which they agreed TO
furnish tho government $4,000 ounces
OF gold and us much more us might no
necessary ut tho rate OF S17.S014 per ounce,
taking In payment therefor pc: cent 30
yoar bonds to tho amount OF S62, 81 Z, 800.
AS tho government price for gold Is
,SlS. 603s per ounce, the difference OF SO
cento amounted to 81, 400, 600. which was
the premium paid by tho syndicate for tho
bonds. SO that tho total proceeds of tho
loan to tho government wDro sos, 1T, 500.
In other words, the syndicate purchased
bonds to that amount ut tho rate of sl04.-
4S, although the price Of tho same securi-
ties in tho open market MT that time was
rr1I n ci, Inv
have boon sold to the public at that rate if
they had boon offered by the treasury. But
this sacrifice was made by tho president
snd tho bonds We're furnished to tho syn.
uicate at Il price nearly Is per cent below
tho InnrkCt rIto as consideration for
Their sorvicas i'll manipulating exchange SO
ms to prevent The export Of gold and pro-
toct tho treasury 1t was very costly
piece of ftnuncering, hut was successful
ara the coin which those bankers deposited
an tho treasury remains there still They
hnre performed their part of tho contract
faithfully md Gro entitled to tho eror-
mons profits they enjoy
Cndor the terms Of their contract tho
bankers were required TO import ut least
.ono-!!a!f of tho 5000, 0G0 ounces of gold
from Europe. They thercupon invited
the co-onsTa'ion Of nearly all the largo
banking houses in New York which have
connections abroad ard Il number OF puro
~ American bankers, who agreed to take
such share of the bonds as might DO al
lottc;l 10 them. AS u matter Of fact, how
over, only sin, $50, qG0 IN gold was actually
imported and that canlc through tho
Rot hSchilds from the Bank Of IngIaad. 1t
is Significant fact that exchange was
stimulated ;osuch ;.Gcgrcc that i, WAS not
necessarily 10 comply with tho conditions Of
tho contrSc..
~. has been stated, The bonds, amount
lug III value 10 SG5, IL, 500, were purchased
from Tho government at &lol.IS, or u pre-
miuni OF Si.IS above par. They were sold
10 tho syndicate II sll2.25, mn advance OF
SF.7I Oh each bond of 500. at that ratio
they yielded Mrssri. Morgan and Belmont
500, 9!90TA On a profit Of 81, S3l h.5. This
profit, however, WAS not retained by those
gentlemen. They simply rc..;nctl three
1ou"ths of 10: cont us commission for
iEc!r trouble, or Tie SIM uf *tSS,3j2 and
divided the rr:uaintcr, which amounted ia
81, Gii, lbs, among their associates i'm ths
syndicate, which is equal To u profit Of
G.6i3 yer cent. They als,. resolved l3{ Dnr
4 cent interrs, which accrued upon the bonds
before they wc.o finally attributed. That
makes u total prc:it oi S. 42a per cent upon
cvc:y dGll." they furnished AS their
money WAS tied up for about six months.
the transaction nct;rl tilcm at tho rate of
1854 per cent per wear
4 Il was this overwhelmingly, SABA, ioS
3-th;.t Mcs5:s. Morgan & Co distributed
rmnnE the Mri:51.s Of tho syndicate thu
Other dag.
iut the members OF tho syndicate if
! they wcr9 80 disposed, were enabled to
q doublr their profits hy selling tho bonds
thus acquired, and many OF thcm have al.
arcauy Gn"c 80. Thorc Is always ,tn active
HGcmnna 70" government securities. and tho
B marie; rate u, the present writing for ills
4 issun Is :la2 They secured their bonds
Cat Sloi4S, with tho commission og Ncssrs.
q Morgan and Epncnt,, which was three
&fonrths OF per cent added, or sos. 23
Hgrosa, and iavu sold them or May sell
them III sl2!, m advance OF SlG.77 on
|aeach honh Of $500, so that, assuming that
#all of tho bonds are sold, tho total profits
3enjoyca by tho members of tho syndicate
|Sis &l2, 49l,a8!. This, divided among ~
Hparticipan,F. gives an average CT about
#SiG0, GOO 20 each.
81 But the bonds wcle not evenly minor
#tionod. Willie the facts uro not known
s3outNlda this immediate circle in which the
s8nanngers move, ii is generally understood
H;hat j. =. Morgan & Co and Belmont &
$s3Co. reserved for themselves bout ono-half
#or $50. On0, QUO Of tho total If this ia
#ruc, their reward amounts to somethin,,
s. ike So. COO oGJ
81 1t shonld lo said, however, TINT tho
Encouragement Of this deal required tho very
IN " hrSt Financial nhiIity ,,.,I +bo ,,-;i -,