The evening world., 1907-08-27
!
MORGAN GETS
MILLIONS FOR
Saving CITY
Banker Comes 10 lie Rescue
and Bids for $4,000, 900
4 Of Bonds.
HIS PROFIT 100000.
Administration Official prao-
tically Admits He Has Bid
for Entire Issue.
HIS PROFIT 100000.

The J. Pterpont Morgan banking
house has agreed 10 come to the rescus
4 OF the city and put in bid for thc
| total Issue Of sao,eoooco Of Al, per sent.
bonds which Acting Comptroller Me
i Coocy will put UP tor sale on seps. i
4 The bids viii be opened Sept. 10.
Ar. Morgan's BANKING house viii bid
\ for ali the BONDS or none. as IN. Ian
pSrmits II is scarcely possible that nny
other bid for the total issue will be re-
ccived. The COMPTROLLER has tho power
! IN award the full issue to bidder, and
In View of the fact that three r.cent
I attempts 10 sell city bonds in quantities
1 10 scattering investors have failed 1, ~
/ considered In financial circles 4 cirea
i that The Morgan house win Fuy .,e
| whole nniount-sto ecop9e worta /, par
Made $4,000, 900 Ther.
s1fr Morgan Rnd his associates s1iI
clRan up t1nc profit on the deai Con-
servsttvs estimates place Ii al u per
cent The transaction is similar n that
IF ass, wren air. horgu+t Krrd august
Belmont and others cleaned up over
sS.o0.oB by purchasing Government
bonds by secret contract
City Chamberlain james d. Martin
practically admitted this afternoon
that Morgan 4 Co. had offered 10 take
the entire Issue. The admission Was
mot made directly MIR Martin said
The public might as well know the
7 facts don't oelieve In hiding any
thing about the financial condition n
the city The fact ts that most or tt1ts
$4,000 which the bond sale IL in
ferisied TO ralss has already been srent
and the balance Is needed for the i'm.
mediate future.
For instance, the city owes ;lG bco. COO
n awards for property damages The
Aaw privides ttaat we shall pay per
cent. on nich awards between tho time
taia award Is made and the ttars the
money Is paid over to the property-own-
Or,
Tnfs interest compounds / stts IN
formed by the Comptroller,s ONCE that
On practically all OF this SIC. .coo, 900 tbs
city Is paying interest at the rate OF %
Rer cent. per nnnun.-tiiis because of
Ge long delay IN making tho payments
and the compound interest plling up
year after year. This Is rlinous we
mnss have the MONEY to take this obll
8e<ioh OH our lNIfis.
Debt to Contractors.
I'm addition to this the city owes
Nsoopoo 10 contractors. according 10
figures furnished me by tho Comp
troher's office. On This amount we are
paying interest. we ought TO Wipe IL
OUT
III these obligations are wiped out
rni y,
7 for The bonds, win he not really be
considerable OF benetactor?" Comp
troller Martin WAS asked
The deal may not 60 through. l;e
replied. The Sinking Fund Commits
sion. Of which l am member. had
nothing TO do With any agreements
about the bond issue beyond increasing
the rate or interest TO ii-3 per cent
-'itEEsise- he bidding VIII be open to ali The
more the mcrier. ! hope the eotnpetj
tion for the bonds viii be strong enough
b send them up TO io6 or il0. and that
II Morgan & Co. gets them all they giIl
have TO pay a good premium.
Secretary OF the Treasury Corteyou
II about 10 loan s5aoooVm 10 New
York banks and municipal bonds ..-n
10 accepted as security. / am told BY
bank president that the banks are
paying per cent, for the use OF mu-
7. aEeisssF sevir
taking part of this loan. Municipal
/. bonds are in demand right now and
have no doubt fha; our whole lxstle
VAL be taken" !"
The deal has been made, Wall street
ia informed, BY Mayor Mcclellan and
Mr.. Morgan. and by the conditions Mi.
Morgan gets all the best OF II Not
emily npsa The E&Eefine III aeelits sijp,
the privilege OF buying *io,opo.op worth
.--of st,t.edge II rer cent hpnds al
par, but the city authorities agree 10
vesraia from selling any more bonds
until next spring.
Morgan Can Reap Profits.
BY that time. II is expected the pres
ent pinch In the money market will
have stretched out. the rate OF interest
on city bonds can be dropped back 10
~ OF 4 per cent. and Mr,. MorgAn's
4 III per cent. bonds will be selling
about iio
.uu