The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-29
TO PROTECT OWNERS
OF RUSSIAN BONDS
Bankers Form Committee to
Act in Case of Default
at Maturity.

The strong probability of payment OF
the interest duo on June l on $4,000, 900
of Russian Government external loan
6h per cent. bonds and the agreement
that everything possible should be done
to protect the holders Of those bonds in
the event OF default on maturity. which
is June IS. were the results of a meeting
Of bankers held yesterday at the offices
OF j. p. Morgan & Co. Whether or not
the interest will be paid next Monday
Will not be known definitely until Satur-
day morning, when the National City
Bank expects to be in n position to make
an announcement on that point, but
there are Indications that the Russian
Financial Commission. which has been
able to provide previous interest pay
ments and which. bankers say. has done
remarkable work in conserving Russia
financial assets here. will authorize the
National City Bank to make the inter
est payment on Monday.
Henry p. Dawson of the Morgan firm
presided at yesterdays meeting. which
was attended by Thomas Cochran OF the
Morgan Arm, Harold Stanley, vlce-presi-
dent of the Guaranty Trust Company !;
Samuel McRoberts and ]. H. Perkins,
vice-presidents of the National City
Bank; c. E Mitchell. president Of the
National City Company. and L c. Smith
of Harris, Forbes & Co. After a long
discussion OF the situation confronting
the holders Of the 6h per cent. bonds.
which mature on June Is, with made
quate funds In sight to meet the ma
rlrity. the group appointed sub-com-
mittee to study the matter further and
report to the main group at an early
date. 1t Is understood that Dawson.
McRoberts and Smith are members Of
the subcommittee.
At first glance the bankers, who pro-
pose to take active steps to protect the
holders of the bonds, see their way clear
only TO form a protective committee and
possibly TO ask tho State Department to
assure holders Of its sympathetic con-
sideratlon of the problem.
All the bankers who attended the con-
ference expressed confidence that at
some future date the principal OF these
bonds would be made good with interest.
The payment. however. presupposes the
formation OF the sort OF Government in
Russia that could be recognized. Bank
ers are more cheerful concerning the
prospect of the formation of such
Government in Russia than they have
been In many previous months and the
impression was obtained yesterday that
LILO outioOh was bTlSutcr imam NEWS UeS-
patches indicated.
The British Government exchanged
British securities for Russian external
loans thus protecting the British hold
ers. There was similar action IN France.
The Nippon Government took up the
Russian bonds, which were not met at
maturity. The United states Treasury
has no authority to emulate the courses
of Great Britain or OF Japan and an act
of Congress would be necessary TO grant
such authority. From what could be
learned yesterday. the bankers have no
intention Of asking the enactment OF such
authority for the Treasury Department.
and any aid that the Government may
extend will have to take the form Of
sympathetic assurance
The Russian Government 6hs were
strong yesterday In tho outside market,
the last sale being for 81 with the issue
Sc bid, 60 asked at the close. Their pre-
vious showing has been a low last week
OF SO and low this year Of as. The
high for 1919 was 72, achieved in Feb
ruary.