The daily morning journal and courier., 1903-11-20
STATEMENT BY STEEL TRUST
THE "cosVERsIos SYNDICATE,
 TO BE DISSOLVED.

Practically the Amount Already Com
 verted-Tot.I Amount of Bonds Isseda
 saoo,ooo.ooo
 New York. Nov. 1s.-Judge E. Fl. Gary. chairman Of the board of direc- tors of the United States Steel corpora tion, gave out a statement to-day in regard to the syndicate contract for the conversion of Steel preferred stock into second mortgage per cent. bonds, stat ing that no further conversion of pre- ferred stock beyond the amount of s150,- 100000, practically the amount already converted, would be made and that the syndicate contract would be terminated at this figure. Already s146. .5oo worth of bonds have been issued in ex- change for stock.
 George W. Perkins. of J. F. Morgan & Co. said in addition, that there was absolutely no truth in the report that new syndicate was to be formed to take care Of the unconverted stock.
 MT. Gary's statement follows: "At a meeting of the finance committee of the United States Steel corporation held yesterday it was (by unanimous vote) decided to suggest to J. F. Morgan & Co. that the syndicate contract for the conversion Of preferred stock into sec ond mortgage 5 per cent bonds should be cancelled and terminated beyond the amount of s150, 900, 900. which figure has very nearly been reached. | "J. P. Morgan & Co. immediately ac- ceded to the request of the finance conn mittee and no further exchanges will be made for account of the syndicate beyond the amount stated. "The matter now stands as follows: l $146,3SS5O0 bonds have already been issued in exchange for stock received and cancelled.
 "$3, ,611 ,500 remain to be isisued in ex- change for preferred stock to be con- \ verted by the syndicate.
 '$2, 902. 900 bonds sold at par for cash and paid for in full October and all ready issued.
 ] "s17. .oss, ,OOO bonds sold for cash upon 25 per cent. was paid to the corporation I October 1, and which will be issued whenever the remaining 75 per cent. shall be called for and paid. Making & total issue of s17O 00O, ,0oO outstanding 5. The ba1snce Of sSo.o000o0 of bonds available for sale for cash will be exe- cuted as stipulated in the indenture and be placed in the treasury of the corpora tion as an asset.
 This will make total of $200, 100000 of bonds issued. The $50,0O0, ,000 remain ing available for exchange for preferred stock will be held subject to the ex- elusive right of the corporation itself to deal with from time to time as the board of directors may see fit. : Tt is not the present intention of the corporation to make any further conversion Of preferred stock into .l bonds. J
 l By converting s150.OO0, ,0Oo of z per cent. preferred stock into 5 per cent.
 bonds, the corporation effects yearly saving of s3,0Oo,0o0. The statement shows that $20,000,000 of new bonds have
 been sold which called for interest charges of s1,OOo,OO0 a year, so that the net saving in this item is $2.0oO.00o a year.
 It is further estimated that if the
 corporation should sell the $S0 900
 bonds now in the treasury, with addi-
 tional interest charges of $1,500,000 a
 year, there would still be yearly sav- ing in interest of $500. 000.' sl A leading member of the syndicate said: An important factor is that
 s150 GOO, 900 of preferred stock has been l taken out of the market and so r1Iaced X that year by year it will be entirely
 wiped out through the effect of the sink
 ing fund provisions in the bonds.''