The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-12-22

sent by the Trust Company of the Re-
public to it's agent, John w. Young,
that the underwriting was a success
This dispatch gave them the idea that
they only needed to stand ready tore
ceive their profits as members Of the
underwriting syndicate.
Charles B. Alexander happened to
be in Paris at the time and to him fell
the duty of removing the false impress
sion and holding the signers of the
,, subscription list to their agreement.
His firm is counsel for the Trust COM
pany here which had charge of the
underwriting and the communications,
which fill seven columns of the World,
are alleged to have passed between
Mr.. Alexander and his firm in this
city.
The Early Correspondence.
The alleged correspondence began
July Is, 1902, and in the early stages
| revolved largely around the investiga-
| ton set on foot as to the financial re-
| sponsibility of those whose signatures
had been secured in Paris to the I'M
derwriting agreement which was then
in the care Of the Bank de Roma
Baron Calvet Rogniat, and M. Schre-
yer, banker, were the heaviest sub
scribers. While both were much dis
| appointed over the misunderstanding
| as to the success of the underwriting
| here they were stated to stand ready
ITO pay their shares. Finally the sit
uation apparently had been explained
!! to the satisfaction Of everyone and
preparations were made for the first
call upon the underwriters July % fol
rs per cent of the subscription, to be
| followed by the second, payable Aug
1 for the same amount.
Then came. the exciting portion OF
the correspondence. !, The banking.
I, NT~,, TToSo< o o. 1o@S
| been selected to receive payments tx
be cabled at once to the Mercantile
Trust company of New York, but the
subscribers did not come forward or
July rs, to which day the payment:
had been postponed, and on July % {
letter stated that Mr.. Alexander hat
changed his tone with regard to thu
situation. The writer is quoted:
Alexander Threatens
While it may be true that these under
writers were not treated properly b.
Young in leaving them under the impress
sion for SO long a time that all the bond
had been sold, yet that has been wei
atoned for by the patience and care witt
which we have in the last week given ex
PLANTATION after explanation to all parties
They are all now in default from the 25tl
and have told Oppenheim to notify eacl
one that their individual liability in cas-
that money is not in New York in time t
make the payment will not be limited t
the amount Of their securities but tina
there will be CONSEQUENTIAL damages to ev
cry party connected with the affair.
The letter criticised severely in
postscript the impressions said to hav
been thrown out by the younge
Hargis, who was reported to be yer,
much prejudiced against the Who'll
affair, that it was said by the cashie
that there was no market in New
York for the bonds. The writer add
that he saw Harges at once an
threatened to turn the account owe
to Credit Lyonnaise, and thereupo
Hargis agreed to tell everything goo
he could about the personnel Of tn
company and the affair. Efforts thr
other sources also We're made, accord
r ing to letters and cablegrams, t
counterfeit the effect of various re
ports circulated as to the impendin
: collapse Of the underwriting schem
It in New York.
II In one of the letters from Pari
e addressed to Alexander & Green, NJ
e Alexander is quoted as fol1ows:s
l. constantly say to all parties that notl
: ing can be done in the way Of assisting Il
n underwriters here to dispose of their bone
A unless they frankly come forrnard whe
v notified acknowledge their liability al
: make their first payment, when all han,
If will unite in endeavoring to sell al
bonds they may wish to dispose of.
Advised vIscomptesse.
The .Viscomptesse Dandigneo sat by n
at dinner last night She has some Of tt
is Scott's Union Iron Works stock and hi
- Just telegraphed refusing to sell exec
for a, higher price. ] think persuaded h
that it would be good judgment not
Is stand, but I suggested to her that perha,
IL Scott would make her an offer in the s
good enough to be attractive as one of h
1. difficulties is the trouble Of investing t
money she may receive.