New-York tribune., 1907-08-28
EXPECT BIG BOND BIDS.
OFFICIALS CONFIDENT.
Street Credits RumOr of Morgan
Syndicate for City Issue.

No further particulars regarding the syndicate
understood to be In OF formation by j. T.
Morgan & Co. to bid for the entire issue OF *4oo"
New York City AZ per cent bonds to be onered
on September 10 could be obtained yesterday. but
the opinion prevailed in we'll Informed quarters
that such a syndicate either had been or ~ouid De
formed. The best opinion in banking circles was
however the syndicate would not be organized
until g few days before the date of the Offering
when there would be a idea IN regard to the
financial outlook.
A dispatch from London said that only nm
tied amount Of tho bonds were likely be taken
in that market but that II was believed there that
they might be placed to a considerable extent o
the Continent. In Wall Street the beilef was gen
ersI that European bankers would have the Pi'If
lego of taking part in syndicate tha' might ue
formed and that they would not hesitate 10 'ahe
advantage of such an opportunity 10 secure e
amount of the bonds In one quarter the pehei
WAS expressed that Europe would TAKE iuS "
third Of the issue The opinion was "io ,,
expressed that out Of town interests. par a.,
savings banks. would take larger aio "
,,,a, than local institutions for the reason that
the latter were already carrying many vi '"e N
sJs and Z per cent issues
Further weakness developed In the market l't
New York City bonds yesterday and the per ceh'
80, o- ,o57 vera quoted in quarters at 9Sfr
a new low record. The st per cents OF l'of VIZ
quoted between s5i. and sl1s- Inc . A..
these issues was said In well INFORMED a"e " -
:, ho..d IN tho popular belief that the ne" ~
above par. w., c..eo, ves-
Thar. wa, q rumor current In wall ot.ee' -.
.erday that the reported Morgan sS,. sShu .a,d
m. nut In a bid the bonds, put "' 80,
ready take over at private saie ., ~. public
o, the issue might not be disposed OF al ,no ha-
offering. In banking c"'e
acterized ridiculous .u said yes
John II McCooey, Acting ooi''i =, a.,
,erdey he felt confident that the CITY The
- sn.u,tv IN selling its bonds at pfeii'i'''
Acting Controller thought that the e'i''''
xou,a he more than bid fer -.
Savings hank. in New York have fliiiloH "
dollars out at 4 per cent the ho".iS :.
psnk alone has over HWop" ht 'iih =,
Interest II the city'e N per cent secuii.
s.. r,,,gnt .t los they would yield an ihco'he oi
a., 80 CON. Al the Controllers office there is III
ir,nr.ss,on that bids for the greater part OF 'he
,s.us will he made by the savings oanks III VIC
city. ,.os
Two sealed bid. for the new issue were received
at the Controllers office IN the af'er1'ooh '
ar. the first bids TO be made
The Acting Controller sef7 that he had ho' uis-
cussed the sale Of the bones with mayor -n'O'
Ian or with any representative OF large hla1
,nt.r.z.. Fl. said again that he believed that
after this sale the rate for city oonos "ou'u i
turn 10 the old per cent one
While officials OF the city are confident that 'ne
e,t,y. issu. Of $40 will readily be disposed ~
and will be disposed OF at a premium yer thes are
looking forward to the sale with little an1-
te.y for IL by chance IL should prove q fali-
rr. as the last two sales have. the city Wouio ne
practically bankrupt The city would be forced 10
default many Of its contracts and obligations
and would probably have pay heavy damages
This was admitted a the finance department yes
terdey.
Should the sale prove is expected. success
the city does not expect TO issue more bonds for
six months Then II is hoped that normal money
conditions will prevail again. and that the per
cent bonds will go back to par. The situation is
an extremely critical and is felt to be
such by tine finance officials OF New York.
Herman Ridder. manager Of the ts-Zeituns
counnany said Yesterday that he would put
any the 81 $1,000 in per cent bonds that he re-
ceived from the city in payment for the building
snd site Of The Stats Zeitung" the market.
He said he felt confident that these bonds would
20 back par.