The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-08-16
CREAM of the SPECIALS
WORLDS MoNEY-MAKING
RECORDS ALL BROKEN
$50, 100000 in Steel in Eighteen
Month.

$50, 100000 in Steel in Eighteen
New York Journal.
Steel Trusts History Told in Figures
Sum subscribed $500, 900, 900
Fronts paid in dividends ........ 10000, oo0
PEI cent of profit paid on
original Investment .......... 120
Estimated amount of profits
now on hand NEUTRALITY-SUSPICIOUS.. 30, 900 900
Duration of syndicate ............ III years
The sum of 100000 was divided yes
terday among the members Of the United
States Steel Company underwriting syn
dicate Checks aggresating this enor-
nous amount were distributed from the
office of J. Pierpont Morgan & Co.
This makes $50, 600 900 in profits that have
been paid to the capitalists who compose
this great syndicate.
Considering that the syndicate was or
ganized only year ago last February,
and that its members were called upon to
put up but SIS 00O. 900. which sum was paid
back a very short time later this record
is a world beater.
The investment has netted 120 per cent
in little more than a year an da half.
Three dividend payments of $4,000. 900
each have now been made. More will fol-
low. 1t is said.
This gigantic syndicate was formed in
February. 1901. to provide s100, 5000 oo in
cash and securities, and to guarantee the
the United States Steel Corporation, COM
monly called the Billion Dollar Steel
Trust
j. Pierpont Morgan was the chief figure
in the syndicate but associated with him
were many other distinguished capital
lists. Leading financial interests through
out this country and Europe are repre-
scented by the financial company.
A $500, 900. 001 fund was subscribed. but
only $25, 600 900 of that sum was really
paid in. That sum was paid back in No
vember. 1901 The syndicate managers no
longer needed it, but instead worked with
the enormous profits which had accumu-
lated, which now, it Is estimated, approx
innate $50, 100000
These vast profits represented margins
in the purchase and resale of stock on
breaks, and the proceeds of the sale of
stock given to the syndicate as bouns.
No official statement has ever been
made In connection with the bonus re-
ceived bv the syndicate. but it has been
received $50 1000. 900 In stock, divided equal
ly in common and preferred.
]. Pierpont Morgan & Co, who man
aged the organizations affairs, received
no direct compensation for their services
as syndicate managers.
No financial organization of modern
times. o. in fact ever in history, has mad
the phenomenal success which has at
tended the workings of this syndicate.
Its functions consist, of course, In financ-
ing big companies, and its charge for so
doing is by no means small.
It was generally believed that when the
financing of the Steel Company was com,
pleted the affairs of the syndicate would
be closed but it is now stated that this
action will pot be taken for some months
at least.
Before the affairs are closed. it is said
by persons in a position to know. several
other dividends of $4,000 900 will be dis
tributed among the stockholders.
No list of these stockholders has ever
been made public. Great financial inter
ests, rather than individuals. control the
syndicate. When a dividend of $40, 600
is declared, more than a million. it Is
said. remains in the firm Of j. Pierpont
Morgan e. Co..