New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-26
Equal Chance Given All
Bankers to Bid for
S1O,OOO,OOO.
NEW YORK HOUSE
EXPECTED TO FIGHT
Alleges II Should Have Prefer.
entail Treatment Under
Old Contract.
From The Tribune Bureau

| Washington, Dec. 2o.-Accordlng 10 an
nouncement made at the Cuban Legation
to-day. the Republic of Cuba desires TO
borrow $4,000, 900 from whoever will lend
and a lively fight is expected from the
| Speyer banking house. Of New YORK.
which considers, II is understood mere
that It Is entitled to special treatment IN
| the fiotation OF this loan.
This claim is based on a clause in the
contract for the 100000 loan to CUBA
noated by the Speyers a few years ago
| President Menocal has obtained an opln-
ion from his legal advisers that this clause
does not hold now. In consequence ne
asks for bids for the loan from any one.
with no preferential treatment for inc
Speyer company.
When the proposition for this new loan
first came up, several weeks ago, repre-
sentatives OF the Speyer interests tried 70
have the State Department say 20 the
Cuban government that the clause In the
old loan agreement was binding on Cupa'
As the State Department had nothing 10
do with the contract for the sl6,oc'Wo Is
sue and had not ratified that agreement IL
was considered that no action could ne
taken In behalf of the Speyers.
President Menocal obtained authority
for his loan from the Cuban congress
after weeks OF effort. and Is now IN the
market for the money and Is giving all
bankers IN opportunity. II Speyer & Co.
obtain redress or special treatment they
must get IT IN Cuba. and not In Wasnins-
ton. according 10 the present aspect OF the
situation.
A group OF financial institution headed
By the National City Bank. OF New fork'
is also deeply interested in this loan'
Some time ago this group advanced Cupd
&. 900 coo on short time notes. the agree
ment covering this advance stated tha'
the banks would receive no commlssloh'
but ~ they failed 10 obtain the contract
for Cuba's next big loan. which was tneh
being considered. commission or Sio',"'
would be paid This group VIII unoouo'-
edly compete for the new issue. Following
is tho statement issued to-day by inc
Cuban Legation:
I'm accordance with a law which was
promulgated and declared in force on the
9th instant, and in conformity with the
proyisions OF It's last article, the President
81 tho Republic OF cuba has been au-
,bor,zed 70 issue bonds for foreign debt
IN the amount OF 100000, in money or
the United States OF America. AT the rate
az Il SIS each pound sterling, or the equiVa-
lent thereof I'm other foreign moneys Inc
President has also been authorized 10
make arrangements as 10 the terms ana
Conditions OF tho issue OF said loan ana
the necessary operations for the proper
fulfInNnt OF the same.
THE law provides that the bonds shall
no AZ interest at the most favorable rates
obtalnable, and they shall be amoruzed
within such time as may be fixed ana
from such date as may be stipulated en-
dcayoring TO secure the most favorable
terms for tho public treasury. the CUBAN
Republic giving "a a guarantee Tor inc
payment OF the debt tho good faith ana
credit OF the republic; so that II VIII a.
WAYS attend 20 the punctual payment or
the interest on said debt. as well as 10
the amortization OF the bonds. inasmuch
as tho law expressly authorizes the Presl-
dent OF the republic 10 give all such guar
antoes and conditions as may be legally
required .. ,,.;,,
he exempt from all taxes now In force
or that may hereafter be imposed by law
IN tho republic. Therefore. the President
has resolved to entertain the proposals OF
bankers and capitalists whose credit.
solvency and responsibility are well
known for tho acquisition OF the bonds
IL being understood that the purpose or
the aforesaid loan is TO supply 10 the
Cuban public treasury cash resources. 10
be applied TO certain and special obllga-
lions, which do not allow any comhina-
tions or arrangements other than those
based on the delivery of the money In ac-
cordance with the present standing and
credit of the Cuban Republic in the Eu-
ropean and American markets. The dao
OF the 18th OF January, 1914. is fixed as
that on which the time for the call for
tho bids shall expire.
THE bids shall be presented at the Gov
eminent Palace or at the office OF the
Secretary of the Treasury, I'm the City of
Havana, in writing. or in such form as
the bidder or bidders may. on their own
account and risk, consider more salts
factory, II being distinctly understood
that the President OF the Republic OF
Cuba reserves the right TO reject all or
any proposition which he may not deem
accountable or convenient to the public
interest"