The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-20
Statement of Operations of the Syndi-
cate Made by Judge Gary, of the
Board of Directors.
ITS WORK ABOUT COMPLETED
NEARLY $15O,OOO,OOO OF THE STOCK
HAS BEEN CONVERTED.
Contract to BE Cancelled and No More
stocksChanxed mt Present-Net
Saving of $2,OOO,OOO.

NEW YORK, Nov. 19.-Judge E. II. Gary,
chairman of the board of directors of the
United States Steel Corporation, gave out a
statement to-day in regard to the syndicate
contract for the conversion of steel pre-
ferred stock into second mortgage per
cent. bonds, stating that no further con-
version of preferred stock beyond the
amount of Sl5O,0OO,0O0, practically the
amount already converted. would be
made, and that the syndicate contract
would be terminated at this figure. Already
sli6,0SS,5 500 worth of bonds have been issued
in exchange for stock.
Mr.. Gary's statement follows: "At a
meeting of the finance committee of the
United States Steel Corporation, held here
yesterday, it was by unanimous vote de-
cided to suggest to Messrs j. p. Morgan &
Co. that the syndicate contract for the con-
version of preferred stock into second
mortgage per cent. bonds should be can
celed and terminated beyond the amount
of $50, 0,000, 900, which figure has very nearly
been reached. Messrs j. p. Morgan & Co.
Immediately acceded to the request of the
finance committee and no further exchanges
will be made for account of the syndicate
beyond the amount stated.
The matter now stands as follows: One
hundred and forty-six million three hundred
and lightweight thousand five hundred
bonds have already been issued in exchange
for stock received and cancelled: S3,611. 500
remain to be issued in exchange for pre-
ferred stock to be converted by the syndi-
cate; s., ,999. 900 bonds sold at par for cash
and paid for in full oct / and already
issued; s107, ,09S,000 bonds sold at par for
cash, upon which . per cent. was paid to
the corporation Oct. l, and which will be
issued whenever the remaining 70 per cent.
shall be called for and paid, making a
total issue of $170,0O0,000 outstanding, the
balance of $4,000 600 of bonds available for
sale for cash will be executed as stipulated
in the indenture and be placed in the treas
ury of the corporation as an asset. This
will make. a total of $2O0OO.OOO of bonds
issued. The $50,00000 remaining available
for exchange for preferred stock will be
held subject to the exclusive right of the
corporation itself to deal with from time
to time the board of directors may see
nit
.It is not the present intention of the
cor rporation to make any further CONVEX
sion of preferred stock into bonds"
BY converting sl50.000,000 of per cent
preferred stock in per cent bonds the
corporation effects yearly saving of 3d.
600 900. The statement shows that so, 900, ,00(
of new bonds have been sold which called
for interest charges of S1,00000o a year, SC
that the net saving in this item is s., ,00O, ,00t
a year. 1t is further estimated that If the
corporation should sell the s3O0o0,000 bonds
now In the treasury. with additional inter
est charges of Sl,501.O0O a year, there would
still be saving of interest of 5000
A leading member of the syndicate said
IAN important factor is that 600 oi
preferred stock has been taken out of the
market and so placed that year by year, /,
will be entirely wiped out through the eff
feet of the sinking fund provisions in the
bonds
Denial was made by a high official OF
the Republic that a new syndicate was tC
be formed To take over the United States
Steel Corporations bond operations. Tn,
existing syndicate. il was added by this
authority, will continue until 1t expires b,
limitation i'm July, 1904. This syndicate. il
was explained, has simply released to tn,
United States Steel Corporation the $780,
100000 worth of bonds referred to above
for the conversion of preferred stock int
second mortgage per cent. bonds.