South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-09-30
DETAILS Of LOAN
ARE NOT KNOWN
Chicago FinanCierS Are Puzzled
As to Methods of SeCur-
ing Big Fund.

CHICAGO. Sept 90. - Chicago
bankers suddenly have discovered that
the 100000. 600 war loan is the most
batting financial puzzle that ever has
been presented to them for solution
Twenty-fOur hours after the terms
Of the loan had been made public they
did not know whether they were TO
be permitted to occupy the favored po-
sition OF underwriters OF the loan or
participate in it only as the public
The difference is a matter Of $10,-
900 600 profits and, as "a consequence,
viii have much to do with their at
titude toward the deal
The underwriting of the loan began
in New York. Boston, Philadelphia and
Pittsburgh Wednesday, while Chicago
bankers still were in doubt as to their
standing. They had been informed,
by the way. that nobody would be per-
mitted to begin underwriting If here
until next Monday.
Nothing to- Act ON.
A directors meeting OF the First
National bank broke up Wednesday
afternoon without action OF any kind
being taken on the loan. The direc-
tors could not act il was announced,
They had not been invited TO partici-
pate in the loan. said James b. Forgan.
president OF the bank, and for that
reason nothing was before them.
The promised meeting OF the Chi
cagO Clearing House association, at
which the attitude OF local banks was
TO have been settled upon, was not
held during the day because Of the
lack OF information at the disposal
Of the bankers.
Chicago representatives Of J. p.
Morgan. however. asserted that bank
ers here not only had been permitted
to participate. but had been urged TO
DO so The entire difficulty, they
added, was due 10 a misunderstanding
as 10 methods Of procedure.
Before leaving Chicago for New
York Wednesday the Anglo-French
loan commissioners and Thomas w.
Lamont. Of J. Il. Morgan x Co, held
a conference with representative OF
the bond houses and the bond depart
ments OF the banks. They left Chi
cago with the feeling that every de-
tail of the loan was understood and
that there was no possibility OF a
hitch.
To Go In as Individuals.
Practically all Of the Chicago pack
ers and other big financiers were re-
ported as planning to participate in
the loan as individuals. James A. Pat
ten was among those who admitted
that they had agreed 10 do so no
matter what local bankers might do.
Something like $25,O0O.00O it is ex-
pected TO be subscribed by a small
clique o. Chicago men who wish to
assure Chicago's representation IN
the deal.
Baron Reading left the city vel
pleased with the result of the ne
gotiatiOns of the commission here.
Everything is satisfactory - eX-
tremely satisfactory" ne said. "Of
course in handling a deal as big as
this one 1t is inevitable that much
negotiation and many details must be
worked out. But L could not have
asked for a better reception here"
John j Mitchell president of the
Illinois Trust and Savings bank, said
that the attitude Of local bankers was
not unfavorable TO the loan. although
ne expected that the amount taken by
them would be small
Il will not be surprised TO learn
that individual subscriptions viii bC
large. but the banks will take but q
small part Of the loan, believe
said he.