New-York tribune., 1903-04-28
STEEL SYNDICATE ENDS.
Profits 200 Per Cent-StOck Con-
DersiOn Plan Forced.

The nn,o roo underwriting syndicate Of the
United States Steel Corporation has at last oeeh
wound up formal signed notices to tnat erect oS
T p Morgan & Co.. the syndicate managers nav
ire been received Yesterday by the various sub
scribers Only one call for cash was ever mace OF
this original syndicate. a call for H1s per cent u
the 5000 900 pledged. or s2SOOoO~ rms sum was
soon returned to the syndicate, ana slIlcs tlIeii
there have been four cash distributions or prouis'
or dividends each of per cent (SlOUo'cVo)' among
tbe members of the syndicate. The circulars re-
ceived Yesterday contained the gratifying in1orma
ton that an additional and final DIVIDEND OF aooul
5 per cent would be distributed making the aSsie-
gate net profit approximately soO,co0cOo or Zo per
Cent on the s25 OoOGoo cash which had been fur
nished by the syndicate for the temporary use OF
the United States Steel Corporation
The circulars. however. contained another ana
less pleasant surprise for the recipients VINO
learned from it that only 60 per cent OF the "ilo
dividend would be paid in cash. and that without
their nreyious knowledge or consent they had peen
practically included in the membership OF the ne"
500 ODoOO0 bond conversion syndicate formed
year or so ago to underwrte the proposed issue OF
Sz5oOooOoo second mortgage ponds in exchange Ior
$500 900 preferred stock and $0o0oOco cash. Inc
circular is follows, the recipient Oh the ~
shown being member of the original synolcale
who subscribed for 100000 of the underwriting:
PRIVATE AND CONFIDENTIAL
J. P Morgan & Co.. No. % Wan-st. NeW-1ork
APE6i Tnited ed States Steel Corporation Syndicate.
NfSsl Dear srs: We take pleasure in informing you
that we are now prepared to make the nndi oIs
trihntion to participants in the above mentioned
Syndicate on the nominal amount OF their partcl-
patons being the balance Of the sgndlcate M c pr0S
Your subscription for $l,0OOeN. ana !oei
share in such distribution will be; ,7o oeo
Cash .TO0'N0
Certificate of participation in United states
Steel Corporation Preferred stock Retlre-
rent Syndicate go per cent paid up IN pre-
ferred stock remaining 70 per cent payapte - ooo
in cash when called HoVVo
Which we will pay or deliver you on presentation
and surrender to us of the receipt which you noIu
pi0pei'' J. p MORGAN & Co.
Syndicate Managers.
In answer to questions regarding this circular, an
interest identified with the syndicate managers
said yesterday afternoon: THE managers OF the
old underwriting syndicate subscribed a year ago
last March for S. 100000 interest in the proposed
nreerred stock conversion syndicate. II was FOUND
that the old syndicate had about 100000 par value,
of preferred stock on hand, and this was devoted
to subscription the syndicate This in erect
made the old syndicate liable for s5G0o0co. OF which
81 600 900 covered by its undstrbuted preferred
stock and the rest represented contingent liability
of Sl000OOO. Under the terms Of the new syndi-
cate agreement the members subscribed so per
cent of their respective allotment in preferred
stock and made themselves liable for the payment
of the remaining 20 per cent in cash"