New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-12
MORGAN POWERS
ARE UNLIMITED
The Anglo-Frcnch Loan
Agreement Gives Firm
Full Control.
PUBLICITY CAMPAIGN
STARTS THURSDAY
Managers Empowered to Make
Arrangements 10 Protect
Syndicate Interests.

The syndicate agreement glving in
detail TO the sixty syndicate managers
OF the S5OO,00O,OOO Arglo-French loan
the terms Of the financing which they
obligate themselves TO carry through,
under stated restrictions. was cent out
last night TO the members OF the thirty
five or more groups OF underwriters.
he agreement forms a document of
about 5000 words. divided into fifteen
articles. and puts in writing what has
already been orally approved by J. =.
Morgan 4 Co.. the syndicate managers,
with their associates.
Plans were practically completed yes
terday for the public offering OF the
bonds, and it is expected that a vigOr-
Gus publicity campaign to market them
Will be started Thursday. The army Of
bond statesmen that was drilled by i.
i. Morgan and members of his finn
last week with instructions on the sell
ing Of the bonds will also begin a
direct canvass of the country.
The syndicate agreement provides that
the managers may hold the bonds until
December II. but after that date they
may distribute them among The sub
scribers. Upon any call for an install
ment subscriber may pay in full the
amount then remaining jIe. All pay
ments By the subscribers under the
agreement arc 20 be made IN New York
funds.
Under Article 2 the agreement says
that syndicate managers additional 20
the sixty already named mag be APP
pointed. J. =. Morgan g. Co, tie agents
of the managers, however. have the
power 20 execute the bond contract
with the governments Of Great Britain
and France. The agents may also .dp-
point one or more agents 10 act with
them.
Practically unlimited powers are CON
ferred upon the Morgan firm IN Article
D. which says:
Either before or after final iistribu-
ton under this agreement the man
ayers, in behalf Of the syndicate, may
make any and all arrangements and
may perform any and all acts, even net
herein provided for, that IN the eXer-
else of their unrestricted discretion
they shall deem to be eXpedicnt IN
order TO consummate the purposes Of
this agreement or promote or TO pro-
tect the interests Of the syndicate"
"The managers shall have full
power" adds Article 7, from time 10
time before final distribution under
this agreement, in such manner, upon
such terms and for such prices as they
shall deem expedient, to sell and TO
dispose of any and all bonds that shall
be subject TO this agreement" Article
s says:
no subscriber shall be entitled to
receive any of the said bonds or the
proceeds thereof before final distrlbu-
ton under this agreement. In the
meantime, in their discretion, except as
may be provided otherwise IN TIE
bond contract, the managers either
themselves may retain all or any ~
such bonds or they may deliver TO any
subscriber his proportionate part there
Of upon payment by said SUBSCRIBER
of 9S per cent of the prlnclpal sum Oh
the bonds so delivered ana accrued IN
terest thereon. upon his agreement %
hold such bonds subject to sale by ne
managers and to return such bonds
upon the call of the managers at airy
time before the date OF distribution
under this agreement
]. P. Morgan & Co., as the syndicate
managers, after the signing OF he loan
agreement, with the consent OF ire
representatives Of the French and BRIT
ish governments, will be the sole judges
as to whether at any time 1t Is to the
interest of the syndicate to proceed
further under the syndicate agreement,
and whenever they may deem eXpedlent
they NAV terminate the agreement.
Sir Edward Holden, representing the
mission. conferred with
New York bankers at the National CITY
Bank Yesterday on matters pertaining
10 further measures for remedying the
international exchange situation, Those
in attendance included William h. Por-
ter of ]. p. Morgan G. CO.; James );
Alexander, president Of the. National
Rank of Commerce; Max May, VICE
president and foreign exchange man
acer of the Guaranty Trust Compan;;
James n. Perkins, vice-president OF the
National City Bank; Frank A. Wander
lin. president of the National cry
Rank and John R. Gardin, vice-presl-
dent, in charge of the foreign eX-
change department.
Subscribers and underwriters were.
notified Yesterday that first payment OF
the big loan would be due Friday at ~
o'clock, The larger underwriters are
beine called upon for the 10 per cent
frst payment. but the smaller SUD-
scribers are asked to pay in fun.