The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-31
CITY EARNS $45O,OOO
BY PAYING Big DEBT
Managers Of 500. 100000 Loan
TO Return That Amount
in Excess Profits.
AIDED BY EXCHANGE RATE

] e. Morgan & Co and Kuhn, Loeb &
CO. az managers OF the syndicate OF New
York banks organized last September to
und.rwrite the si0Q,000.000 New York
city per cent. loan which was necessary
20 enable the city to meet its foreign
obligations. paid out yesterday to the l24
participating banks sl,G0is1s This
amount represented the full . per cent.
profit accruing to the banks on the ss0.-
2l2s4o OF syndicate subscriptions.
Although not definitely announced by
the syndicate managers 1t IL understood
that they VIII pass hack TO the city about
$3.50, OOO. which represents the net prom
OF the Transaction in excess OF the per
cent which the banks we're t. receive
under the agreement between the city
and the managers Of the syndicate.
The exact sum to be returned 10 the
city will not be known until after the first
OF the year, when the entire transaction
/ is completed. The profits Of the syndicate
/ now appear TO be IN the ueghbothood Of
81 100000. The syndicate managers in
[ creased the profits OF the transaction by
4 taking advantage Of the period in which
exchange was below the 40 the pound
sterling cost Of shipping gold to ottawa,
/ The syndicate managers on their own re
J sporsibility bought heavily of exchange
aud thus made 4 possible TO restrict The
I gold shipments to canada to an amount
which was considerably smaller than was
thought y, ssible.
Dyer uue-h,lf OF the ts0,243al0 in
drOtrduesS which fell due abroad was met
through the purchase of exchange. IA,
exact amount being siO.jlH.Ol3. Gold
shipped amounted TO s35. 26i.G3G and
s4.56o. 2e0 was sent in checks direct
\; IN" time the syndicate was formed
exchange rates were about j.u3ll the
pound sterling. rate far above normal
within a short time, however wher
Europe saw that this country was pre-.
pared 20 meet Its debts ana exports were
resumed. exchange saggrd As a result q
grra' deal ~ the necessary exchange wa
pure" ascd around $40.
Following Is the amount OF slbscrip-
tfVn OF several Of the larger participants
IN the loan National CITY Bank, S1.SUO..
$50; guaranty Trust Company. sj.s25.-
900 National Bank of Commerce s4,sNs.
200 Chase National Bank. Si.J7q,62O
Bankers Trust Company. s4.076,7S
Farmers Loan u Trust Company, S3.902.
is3, and First National Bank, si.232. 900
Comptroller Preud.tgast had the fol.
lowing 20 say IN praise of the work % tn.
syndicate
The city expects 10 receive to-mOr, ow
from the syndicate managers an account
ing OF the operations OF the 500. 0O0. 0OC
loan. While the definite figures are not
available. am justified IN believing from
the estimates made 'hus far that ther,
VIII be credit 10 the city of at least
$4,000. II VIII be remembered that uu,
de" the terms Of the contract the city.
.ur"ign obligations IN pounds sterling V-r,
to be IiquIdIted At tn rate OF 5000 unt
i've francs t. the dollar. Every thing thal
has happened since that time has con
iirm"d my belief IN tn" splendid s-r,ic,
th,.; was rendered to the city ny the syn
al.ate managers and t"e banks. and ais,
just, il~i beyond sny question the maxim,
o. tie contract"