New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-04
BIG BOND SALE REPORT.
PART OF U. S. STEEL ISSUE.
Banking House Said to Haze Taken
Up S3O,OOOOOO.

One of the news bureaus of Wall Street pub
lished yesterday afternoon the following an
npuncement
We authoritatively informed that promi-
nent banking house has purchased the remain
ing issue of United States Steel Corporation )
per cent sinking fund bonds. which were not
purchased by the recently dissolved steel syndi-
cate.
The inference drawn by the Street was that
the bonds had been sold to some house other
than J. P Morgan &, Co. That this was the
fact was said at the Office of ]. P. Morgan &
Co. to be incorrect The speaker added. how
ever. Il think that very few of the $30OO0OoO
bonds will be found in the market'-frorn which
it was inferred that negotiations were under
way or had been completed for the sale of
vast block of bonds for investment.
The first view Of the Street was that the bonds
to be disposed of were the remaining $50,00O,
600 authorized to be exchanged for preferred
stock. and not yet so exchanged; but, although
no definite statement on the subject could be
obtain beyond the mention of "$3000oo00' at
the Morgan office. it was believed later that the
reported sale was OF the remaining $3o000OO0
of the $4,000 900 new bonds authorized to be
sold for cash.
The offer TO preferred shareholders to ex-
change 40 per cent of their holdings for new
bonds $500 600 in alb and TO subscribe for
cash at par, expired on May Is. The life of the
underwriting syndicate was in September ex-
tended to July 1, 1904 On November IS how
ever, up to which time bonds to the amount of
S146,3SS.500 had been issued in exchange for
preferred stock received and cancelled, the
finance committee of the United States Steel
Corporation suggested to ]. P. Morgan 6, Co. the
syndicate managers. that the syndicate contract
for the conversion of preferred stock into bonds
be cancelled and terminated beyond the amount
of $150OO0OO0 (only S3611500 beyond the
amount converted Up to that date; and the
syndicate managers Immediately acceded TO the
request. The right Of converting any part of the
other S5OO0OO00 bonds, therefore has Iapsed.
for it was withdrawn on May 16 as to the pre-
ferred shareholders. and on November IS to
the underwriting syndicate.
That syndicate, however. it will be renem-
bered, contracted to purchase. and did pur-
chase for cash at par S20O0OO0O of the 500
100000 second mortgage bonds, which, with
the $500 100000 intended to be exchanged for
S200OO0OOO preferred stock. made up the $3.50
100000 originally authorized to be issued In
the official statement of November 10 it was
said.
The balance of S3OO00O0O of bonds available
for sale for cash will be executed as stipulated
in the indenture and will be placed in the treas
ury of the corpora ton as an asset
It will be noted that this statement refers to
the bonds as being available for sale for cash. o..
and not for cash at par" The General Cor
poration act of New-Jersey does not prohibit
the issuance of bonds at less than par and as
the second mortgage bonds of the United States
Steel Corpora tion are Tltvv selling in the market
Aat 40 it is probable that the Steel Corporation
has arranged TO dispose of this treasury asset
of $4,000, coo second mortgage bonds al price
materially lower than par although perhaps in
excess of the ruling market quotation.