The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-06
SEES MILLIONS
SAVED BY CITY.
In LOAN TERMS
-
Comptroller Praises Bankers
Who Agreed to Raise
S1O0,0O0.OOO.
MORGAN REFUSED
OFFER OF PROFIT
Pledge of Economy by City
Part of Borrowing
Agreement.

C1rr'i-o'lcr william A. preudergast IL.
,ua.I q statement Yesterday explaining the
arrangements made with j. T. Morgan &
CO anil Kuhn. Loeb & 90. as managers
- g.. sy"1lca'e which IL to raise 500.
NM Ju0 90 pay the outstanding oblign.
.urs ~ .hn city. Including the sSo.243..
go g. rtturitl"s which fan due In Eng.
lard and France before January next
tn Controllers statement contained
$50 -es2pr 1oncs with tho syndicate man.
ar5~s ed . copy Of the contract under
ah On. bankers agreed to head the syn.
d.-itc and statement OF the clty'A ma.
"i-ns 1hllrltlons
J = Morgan 60. and Kuhn. Loeb &
CO are 90 act AZ syndicate mana gers
'wi'h.ut compensation. but they may be.
come members Of the syndicate and as
SUI share iu It's profits or losses.
Profits Limited to 2 PER Cent.
- 10. even; shall the net profits OF the
syndicate exceed per cent. on the $50
90 'iot7 which the city must meet In
T,H-opo II an advance In exchange
causes a loss, tho loss shall he borne By
ne syndicate. The rate OF exchange
nrreoL upon IL said to he 5.O3ig Comp
t-or.r .rrcndorgast In his statemen;
sa,s
THE proceeds OF tho 1000. 00O notes
10 BE- purchased as above provided are 70
h. deposited az interest at the rate o, .
pe- rorit per anuum in the severa, banks
and trust companies OF the city OF New
yor} which shall become members OF
the syndicate, to- an extent equal 70
their several subscriptions. and TO tina,
md tho fs'al authorities of the city OF
New York will designate such banks apd
trust companies as city deposItaries. II
any such syndicate member shall be a
Ran. or trust company which shall de-
cline 10 pay such interest the deposit
otherwise 20 b" made with such bank or
trust company shall be made with some
other approved city depositary or deposl-
taries TO be nominated by the syndicate
managers. To the extent that the sub
scrihe-s 20 the syndicate are not banks
or trust companies the proceeds OF the
notes purchased shall be 40 deposited In
such designated city deposItaries as the
syndicate managers shall nominate.
"pf the total proceeds Of the notes 10 he
purchased by the syndicate. sSO.243.940 ~
tfhi ht reserved ana small ne uSeu sOltlN
for the payment OF obligations OF the city
nov outstanding and payable In London
and IN Paris prior 10 January /. 1915, 70
the extent Of fl3494.327 ISIS. Cd and of
francs 81 500, 900. The syndicate il Ia
arrange for such payment IN duo course In
cons Iteration OF the payment to the syndi-
cate managers for the account of the
syndicate Of tho aggregate sum OF $50
HfA9i047 above mentioned. The oty
F-ar frN.n ND NJ 4
ny tho syndicate managers, will furnish 70
Them out of the proceeds Of such new
notes TO be purchased by the syndicate
such sum or sums as they shall require In
ample time TO make proper provision for
taking M Cat or prior to maturity al
tho option ~ the syndicate manasers) all
votes payable by their terms in London
~ IN Paris at tina rate Of 5033 for each
pound sterling Of. all notes payable by
'heir terms In London, and 20 cents for
zach franc Of all notes payable by their
terms IN Paris