New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-15
STEEL SYNDICATE'S LOSS.
Gail Made on Members for $780,
600 Cash.

u was learned In wall street yesterday that
car for 100000 cash had been made on the
members by the managers Of the United Sta1es
Steel bond conversion syndicate. This Is con
ridered additional proof that the plan which
was fought in the courts Tor year has taileo'
and that the syndicate has sustained heaNs
loss. IN the spring Of 1902 the bond CONVEX
sion plan OF the United States Steel Corporation
was out out. II provided for issuing $4,000
600 > Der cent second mortgage bonds for the
retirement OF S2o0oo0Oo0 : per cent preferred
stock and raising SJo0t0oo0 additional work
ing capital for the corporation and its subsidi-
ar-y companies. The stockholders received two
options arst. 10 exchange pro rata at par S-OJ'-
100000 preferred stock FOR new bonds. and, sec
ond 70 subscribe in cash AZ par for S50OO0Ooo
new BONDS An underwriting syndicate agreed
TO take AZ least S1O0eO0Oe0 Of the bonds not
taken by stockholders, in exchange for SSoOoo-
oe0 preferred stock and S20o09o0O in cash
Tor this service the syndicate was to receive
cash commission OF 4 per cent on all bonds is
sued. This syndicate is composed Of principal
stockholders OF the corporation.
Considerable mystery has surrounded the
operations OF the syndicate. and IL has been inn
POSSIBLE 10 get any OF the managers 10 tell any
thing about ITS affairs: but IL has been no secret
ahat The syndicate has been greatly disappointed
81 the failure OF the stockholders generally TO
convert their holdings into bonds. Ia is com
monty reported that the public converted only
about S50UBOO1O preferred stock. and furnished
AlOuorOJp cash. or one-fifth OF the entire
amount. X is not known whether STOCKHOLDERS
urfa.s OF conversion are included In this total,
lrj ~ has been accepted that not more t4an
SlZU nnn 600 preferred stock was converted al-
S.'r ueuOuo cash furnished. Assuming this 10
-r1Ir 30 is interesting 10 inquire ine SHliul-
,aIe's losses 20 date. The syndi Gaze put up
nUnO Opn ~ preferred stock worth IN the mar
ket "a This WAS converted into bonds These
bonds sold yesterday al about -. ms -
joss of lG points. ana on $SnWnooo would cause
= loss of So $4,000. In addition. the syndicate
r7ul. furnish S2OuuOOUo cash 10 buy similar
anlount u bonds at par. which would ada an-
other Joss Of - 4o0Hs1. or total Of Slt.2eovtl
Prom this should bo deducted the cash coninls-
sion ~ per cent on SlJoWf''En. or SoVNfVp'
leaving . net loss Of Sll.2uO.Vte The syndicate
however. probably made money from ITS oper-
ationS in the market 80 the actual loss 10 cale
may oe ser down ri SlOoVoWn, as was esu-
mated at the time the bond conversion scheIne
vas declared legal AS b. was generally sup
posed the syndicate had paid in all IFS caSh
obligations. Wall Street was surprised ar me
.an yesterday Whether this S3OoaWh M
Guided the total lia bilites If the syndicate could
lot De learned.
steel common made another low record yes
terday. selling down TO 1874. the previous low
figure being 49,. The weakness of the stock
was ascribed generally TO The reports that the
next dividend win De reduced. III not passed
A. the same time II may be said that assur-
snces hove come from official sources that there
WI he no change in the rate al present.