The sun., 1896-02-06
RIVALRY IN THE BIDDING.
ONE GREAT FACTOR IN THE Sue
CESS OF THE LOAN.


TO Secure After All nt Lenst 40 Fer Cent
The Rumors to the Figures OF Mr..
Stewards Rid believed to Have Innu-
enced Those OF Mr.. Morgan and His Allies
Wall street was astonnded at the amount Of
the bids for tho new bonds. The largest es-
Innate on Tuesday OF tho aggregate bids
WAS S2o0. .oO0. 900, and the prevailing impress
sion was that the average OF prices would bo
lOs or 100 Tho FIRST announcement from
Washington that bids aggr, eating $3.50 900. 600
Ind been scheduled almost paraly zed the street.
The Official statement that President John A.
Stewart OF the United States Trust Company
had sent in for mis- institution and n large num-
her of other institutions and individuals bid for
SO. 100000 at ll0.075 was no surprise to read
ers OF THE SIN. in which the amount and price
OF MIR. Stewards bid was printed exclusively
yesterday morning. The announcement that J.
=. Morgan & Co. had bid for the entire Issue or
any part thereof at a slightly higher price than
that named BY Mr.. Stewart for himself and as
sociates WAS II genuine surprise to the Street.
Interest in tho Morgan bid was intensified when
It was learned that 1t was for the firm of J. p.
Morgan g. Co.. the Deutsche Bank of Berlin,
Harvey Fisk & Sons. and the National City
Bank, each being equally interested In the bid.
AS soon as tho bids were made public W all
street saw at once why the loan had been largely
oversubscr!bed ard the more the street stud led
the circumstances attending the bids the
stronger became the conviction that business
rivalry was largely responsible for the extraor-
dinarily large subscription to the bonds. The
floating of this loan OF the Government is re-
plete with exceedingly interesting develop
ments. many of which will probably never be
made public. The most important fact. and
one which 1t Is useless to try to conceal is that
Mr.. Stewart and Mr.. Morgan have competed
for the honor of financing the Treasury. Until
The bids for the bonds were opened in Washing
ton yesterday the impression prevailed that
Mr.. Morgan would not bid for the ponds on an
extensive scale. and probably only In beh alf of
correspondents of his house who might ask him
to represent them. 1t was perfectly we'll known
that Mr.. Stewart, who has always taken an
active part In placing the obligations OF the
Government. was inviting prospective pur-
chasers OF the bonds TO aggregate their bids
with lin. using the argument that uniform
BIDS for II large amount in ths aggregate would
probably secure moro bonds than scattering or
disorgan ed bids. A motive which Mr. Stewart
himself says actuated hiu in TAX ing an active
to lie IA success. not only to the amount of
bonds bid for but aso as to the price. AS all of
determination OF price with him. he called In a
as to the price at which the aggregate bid should
be made. THIS COMMITTEES consisted OF President
Wam S Sf Of nv nr% Hss
Thalmann of l-adenberg. Thalninnn & Go.
MI senwHr owirg TO the sd lrEs nImssr her OF In
obviously compelled TO play rather an open
hand. hand. IN CONSEQUENCE qM. "a a number ,e OF bankers
b.r y yesterday ST % nornins % that Nj at"warts bid
would be slightly abov. 10. THIS knowledse
,hs sssss 81 ;hn
tertsy. that he did not cnre II ne aid not &c! a
single bond. that he had taken the course he
| the credit Of the Government. and that lie was
satisfied with the apparent outcome of the loan
A number OF those who put IN their bids
through Mr.. Stewart do not seom to be Hs
I thoroughly satisfied as he with the prospectiye
| outcome uf their efforts to secure som. OF the
new bonds. II is TO be noted. however that
some of the firms that asked MIR. stewart to bid
! for them have with characteristic shrcwdness,
| sent In bids for the bonds ~ slightly higher
figures than, the price agreed upon by Mr.;
Known Known in Wall street that a good many bank
Ing houses were Influenced to rend in their bids
doinsso d thev M played against J. p Morgan Co.
| and al the same time some OF them appear to
let IT. without bond should M III Sir. Morgan discover over
as he apparently did. the figure at which Mr..
Stewsr. would bd Ia, and ; raise the price on him
some OF the concerns bidding through Mr.
Stewart were bent only on securing sufficient
hondst to cover the saes they have made for
! short account during the last few weeks.
| The situation In brief appears TO bo that Mr..
price at which the new loan will be awarded.
and that J. =. Morgan & C." and their associ-
Current estimates last night by those Iuost ia
miliar with the bids were that the Morgan syndi-
Of the bonds. In considering the dlircrence in
/ price that the Morgan synd Will pay FOR the
bonds and tho price price at which Mr.. M"rgan was s
circumst tances should not be overlooked. Chief
among them is the change In the attitude or
of securities. both IN Europe and this country.
since the subject of financing the Treasury was
The financial community In tho main was in
Stewart and Mr.. Morgan With complacency. IL
( not with amusement. This comment; however.
wo ""'es vna ast
them; nor to others who having been associated
Wh Mr. Morgan In the syndc","
were left entirely In the dark as to hin final In
tentions regarding the new loan. Enough has
ing OF ile loan has caused certain
nnount of unpieassnt.ess between various and
Among those not Interested in making n direct
profit OUT OF the loan the view was generaliy ~x;
pressed that great good had been accomplished
by the coinpetitio between Mr.. Stewart and
Mr.. NJ" gan and their respective foiiowng In
sold at u much higher prlce , ,hnl the th
loan Will be in the hands OF bankers, who can
conduct the operation with minimum OF dis
| turbance TO the money market. Not less inn
portant than these considerations IL the fact
that a considerable percentage of the bonds
| will. judging from the bids be awarded to in
terssts that have facilities for placing hem
abroad, Including the Dentsche Bank. which
has already arranged to distribute with actual
investors on the Continent Of Europe whatever
proportion of the loan il may secure.
| The frs; effect OF tho floating 4 the loan will
| be to release large amounts of money. Ilrticu-
larly gold and legal tenders that have been
held by bankers and others who have bid for
the bonds. For t''s reason the premium on
legal tender notes virtually disappeared yester-
day and the premium on gold WAS down TO asG \
! per cent. Large amounts were offered nt the
fraction last named. The amount Of income
that the new bonds Will return AT certain pricet
has been computed by tho Actuary OF the Treas
ury Department and Is as follows:
lrr cent. Price. ,lrr cent. Price.
1870 s7IS IL II. 2nV1
l2a. p234 3tp, ........,.l 80. o. ST
lpB220 o is. U7 $500
l.l6 3js Inn. % ~ q
~. lMei7l tll0. ...... l03. es Il
ssio s ia Ssos sfSis......::.ooiI.6i7
| 1h.Ib