New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-10
p.,kins Outlines Financing.

After discussing several methods SUE
gas,sd for raising money, Mr. Perkins
in his statement said.
It was finally found impossible 70 secure cure
a pledge OF the entire S-yv"'VL - ,ao,,id
Serrad stocs. but that the best that coulu
he done was 20 organize syndicate tld1
would agree 70 the following. w
First-Purchase and lodge WIN -,
Morgan & Co. 100000 OF pIeie''7
Sacord-Az~ee 70 exchange all Of thiss
or only a. per cent OF II az the optlon %
the Steel Corporation for second iiioi
7Tbird@Tske second mortgage bonds
from the Steel Corporation az par III "a
change for $50 100000 in cash. - o.. a.
For this the Steel Corporation Nds 10 - -,
Ioyv said syndicate per cent cQmHliss.--
On ali The bonds II took In exchange IL
stock and I per cent commission on az -
bonds it took at par for Cdsn - that
forr, viz II $50 90 COZ Of bonds were lssutu
for stock and 100000 Of bonds were ia
sled for cash. the Steel Corporation WIZ
bavs paid 70 the syndicate per cent on
~ 49, Co nv ~ oo0 900 and J. ?. Morgan
l. ~ would have received Tor guar ante
ing the whole 800. 10000 for handnns Inc tne
syndicate and the securities ana Iof lIiIulne
q market on behalf OF the szndlCdle III
6s,h ~ q 40 600 or $4,000 The contract
moreover was made subject 10 the az
nroyai OF the stockholders. The Steel Or
nora ton reserved IIf ID III ~ 49,
preferred stock holder IN me col 20, , Slc,S,I
Inc oDtiou 70 subscribe for these new oonds
% the extent Of N per cent OF MlS IL
ferred stock In view or the faCt INA w
steel Corporation had made this 2ontra 49,
...L 80 evndicate IL every preferred
stock holder exercised his risht ana looh -
per cent II bonds In exchange ,gI I.ls
stock. the syndicate W0uio Pe pc. a., COZ di5
rosition where IL would only get S"-Vp.uVo
~ its $50 coo OF preferred stock CONVEX
ed into bonds and would be left with So
o;N 0d0 Of preferred stock on lts hanus' a.
though IL pledged Itself 10 Lle up Lills
20 000 0H1 OF stock for eighteen T1ontns ana
could not sell II or in any way dispose o.
n no matter what became or the price oA
the stock or what became OF business III III.
5i+iore in the country or how mucn any
syndicate subscriber might need the tuIGs'
Commission Of sto,ooo,ooo.
IN consideration Of all this risk the syn
dictate gained the right 10 reeve . on IL
were issued 10 preferred stock holaers nor
members Of the syndicate me SLVV"Vyo
maximum 10 the syndicate can oIIy oe r.
noj,.sd nv n provided the entire transaction
~ purchasing S2000,0.O'0 OF preferred stock
and ratiring In and then issuing and placing
on the market s25oooo.GO or second mort
gage bonds at par is completed and con
=, is true that the money could have been
raised bv stopping dividends OF the pre-
fer-ed and common stock for one year or
the common STOCK dloHf Apl A"' ca
ga a haif This course was deemed uu-
Fair 10 the stockholders. and particularly
~ the holders Of common stock. which
stock was held by thousands OF small mold
ers.
The committee to-day also determined
IN demand that the Steel Corporation
produce books ~ the subsidiary COM
paries which It had refused 70 give up.
and instructed the chairman 10 take
legal steps 10 procure them.
Mr. Perkins will appear before the
committee again tomorrow.