New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-05
RUSSIAN BONDS
CAUSE MYSTERY
Proposed Flotation, Re
puted To Be 100000, 900,
Puzzles Bankers
SYNDICATE HACKERS
FRENCH AND BRITISH
Lord Rotterdam Reported
Leader-Czar'S Envoy De
MES Issue Is Official

officials OF the Americsn-Russian
Corporation. OF so Broadway, which on
Saturday was publicly proclaimed by
the Russian Ambassador as authorized
10 offer any bonds Of the Russian gov
crnment for sale in this country, re-
vealed for the first time yesterday the
identity OF some OF the British capt
talists behind tho concern. and the
part IL expects to play in the Offering
OF Russian bonds 10 American inc
vostors.
Instead Of lifting the veil that has
cnveloped for some weeks the per
sistent and alleged unauthorized offer
ing Of Russian bonds in the financial
district. the statement from the cor
poration merely serves 10 create
new probably an international myS-
terry. The firm positively states tnat
10 will be able 20 offer ln TINS counl'!
many million dollars worth OF fve-
year, five per cent Russian bonds ana
AZ figure from 10 90 10 per cent
lower than the bonds Of the recent
$50 100000 Russian loan are beng
offered.
Opposed TO this statement is the
denial OF the Russian Ambassador, the
original draft Of which was shown 20
The Tribune Yesterday. Opposed TO IL
further are the statements OF members
Of the American syndicate which ne
gotiated the S500O00O0 loan, who de-
clare they do not believe such bonds
will ever appear IN this country
Cables Lord Rotterdam
All doub, that Lord Rotterdam, the
British capitalist who is connected
with the London, City, and Midland
Bank, is back of the Ameucan-kussiah
Corporation. was set aside yesterday
by Fred S. Taggart, New 1ofk man
ager Of the concern. He stated that
he had cabled the Russian Ambassa-
doris announcement 10 Lord Rother-
ham. and would have TO walt has reply
before making a complete statement.
Mr.. Tacgart directly charged tnat
the present agitation against his hrm
had been instigated by what he re
ferred 10 as the Morgan group,
which is selling the recent Russian
loan bonds In America, and which has
disposed Of S25,000000 worth Of them.
This statement was partially borne
out BY an official Of one Of the financial
concerns which negotiated the loan'
who admitted that he laid before the
Russian Ambassador the facts that had
resulted i'm the statement OF SATURDAY.
"The position of this concern Is Gn-
assailable." Mr.. Taggart asserted. Nv
are close corporation, representing
a powerful group Of British and
French capitalists, and have been or
ganized in this country for only SIX
weeks. As vet, we have made no public
announcement either of our purpose
here or Of the manner in which we
expect 10 conduct our business. We
have not. however. offered any Russian
bonds for sale, nor have we pretendedi
TO represent the Russian Government
Issue May Reach S3OO,OOO,OOO
Mr.. Taggart would not state the
amount OF the bonds his principals
expect to offer, but in other quarters
il was asserted the concern had stated
IL would sell bonds up TO the amount
Of $500 900. IL became known yes
terdav that another group IN New
York has been offering 20 dispose OF
Russian bonds up TO the amount OF
500 900. Official denial that this
,,roup represents the Russian govern
ment in any way is expected from
Ambassador Bakhmetef within the
next day or so.
c. +. Mitchell. Of the National City
Company. one Of the American finan-
cal concerns which negotiated the
recent S50,00O,OOO Russian loan, was
asked yesterday TO explain why there
should be so many offers Of Russian
bonds in New York, most Of which are
.dmittedly unauthorized. He con-
fcssed himself as mystified as are
investors.
For weeks past" Mr.. Mitchell said,
'mcn have been going from door to
door i'm Wall street offering to sell
Russian bonds This company has
been interested in investigating the
different enterprises because 1t is ln-
terested in the Russian loan. So far
as we know not d single one Of these
mythical bonds has ever been pro-
Gucod. n they are in existence. let
the men who are offering them bring
them forth.
I'VE investigated the American-Rus-
sian Corporation when it opened here,
out found nothing TO contradict the
report that 10 had strong English back
'nC.'