New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-03
COFFEE STORY DENIED
No Great Amount Likely To Be
Thrown on Market.
BROKERS SC0FF AT REPORT
Herman Sielcken Says Strong
Interests Are Buying All
That Is Offered.

Little credence was given in the coffee
trade Yesterday TO a report that all or
part Of the $4,000 bags of coffee stored
IN Brooklyn warehouse pending a de-
cision OF the United States Supreme Court
DIS 10 whether or not il was brought INTO
! TINS country in violation of the Sherman
anu-uust law would be immediately
'nfoWn upon the open market. The gov
! erhment suit referred to was designed TO
hreak the coffee valorization scheme into
"hich the Esazilian government and sew
erai American and foreign bankers en-
''Ieu ABOUT I'VE years ago. when between
, o'NVV0 and 5000 900 bags of coffee were
slVen as collateral for a bond issue of
tlo'VO@e by the State Of Sac Paulo. in
Brazil.
Herman Sielcken, who is credited with
being the chief figure of the valorization
syndicate in this country. gave out the
following statement concerning the re-
port:
REGARDING the truth of an article which
appeared in morning newspaper yester-
10y peg 70 say that ! am authorized
oy the Brazilian Ambassador to state that
al no time has he ever had under way
negotiations with the Attorney General
looking toward the Withdrawal of the
SUIT nor is he authorized 10 do SO While
the suit Is nominally pending. the de-
nurIer ,interposed by my attorneys.
Joseph II. Choate and John A Carver
has not been argued by the limited States
governments attorneys On November IL,
lhe GATE set for argument, my attorneys
received word from the governments at
torneyS that no argument would take
place, as there were diplomatic negotia-
uonS pending In the Department of State.
The Brazilian Ambassador distinctly and
positively states that he has never been
authorized TO make any negotiations
whatsoever concerning the propert- of
Ihe sac Paulo government The United
states government has nothing whatever
TO 90 with the sale of the coffee. the
owners Of the property or their agents
being the only ones in position to dis
pose OF IL, and any limitations of any
compromise are absolutely untrue and
pure invention.
Sigmund Hirsch. of Nordlinger & Co,
scoffed at the idea that the coffee mar
ket is about to be glutted with the Bra
lillian syndicate's holdings and added
that it was not likely that any Of these
holdings would be disposed of until after
the bondholders' committee had met AS
this meeting in all probability will not
occur until some time IN January or Feb
ruary, change in present market con-
Coffee brokers say that strong interests
are buying all that is offered on the mar
ket at current prices, which could hardly
be the case II break were impending.
They also say that there is large short
interest amounting TO not less than 250Q00
bags, which would Ike nothing better
than TO see a break IN current values. ii
is believed that the story of the sale OF
the litigated coffee may have its origin
in this situation.
Arrangements for the sale OF a good
part OF the coffee under dispute next
month or soon thereafter are no doubt
pending When the representatives, Of the
bondholders meet next month In London
it will then be officially determined and
publicly announced what the plan of dis
posal Of the valorization stocks will he.
in the last year 100000 bags were sold
in this country and a like amount in Eu-
rope. At no time can moro than 100000
bags be distributed The amount less
than that, however depends on the con-
dition of the coffee market.
IT is said that of the original issue OF
1900 900 by the State of Sac Paulo, no.
900. 900 has already been retired by the dis
posal of the collateral, and that should
the remainder be sold in the coming year
the entire amount Of the bonds VIII be
wiped out Coffee prices are now about
one cent a pound less than they were
at this time a year ago, and about half CT
this decline has taken place In the last
few weeks, due, il is said, to the contn-
ned reports kept before the public by bear
interests TO the effect that a large
amount of the valorization coffee was
soon to be disposed Of