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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (May 11, 1902)
THE OMATIA DAILY PEE; SUNDAY, MAY 11, 1002. 17 (Mill OF TOE SYNDICATE Ifrncrai FroCu Uade in Launching the Kodern Trait. rTORY Of SEVERAL RECENT DEALS Wv Millloa Arr Mi4r la rioattaa; allroa aa laaaetrlal tasnbiaes . Mormi't Share la ra dicate Developsaeat. ritldsni cabled over from London of the epensttlon to be awarded to the trndl s which U underwriting the securities ft be sew shipping rombiDe ha, excited rest In the hlrtory of the development Chete syndicates nd the extent of their fTItt In thlt consolidation I, to recelr, a tut of t25.orKJ.UfiO in common ttock and 00.00 preferred. l iplte of the extraordinary attention icb bat been attracted to thl arrange U relatea the New Tork Times. It It fited ont by a prominent financial Inter- la Wall atrert that thia It not to large ment at was received by the underwrlt- of the ateel truRt organization. The plng trust syndicate guarantee the a of SO,000,'HK bondi and about 1120,000. 4 In atock. "his syndicate hat been called upon for 1000.0O0 of ltt rash subscription. Inter- connected with the new scheme admit, ever, that most of the bonds of the new epany have already been aubscrlbed for side of the syndicate. All that remains 'be done, therefore. It to float the latuo 1120, 000, 000 of atork. It Is taid that if i syndicate Itself were to buy these bonds I profit would amount to about E5 per it, which would be reduced to tome 30 cent by the aale of the shares of Itock .leet than par value. t has been figured by responsible per ls that the profile of the syndicate will .ount ta about one-half the face value of t aecuritles with which payment will be de to them, or aome $13,000,000 or $14. ,000. Of this amount It It understood it J. P. Morgan Co. will receive about 400,000 for managing the affair. Thia It laidered a low estimate In Wall etreet radlrate'e Development. Since 18S0 the underwriting syndicate hat d a remarkable development In this jntry. It hat made possible the forma n of companiet with hundreds of millions dollara capital; it hat brought great cklng houses into harmonious working reemcnts. It has brought American and "elgn financial Institutions Into close co era tit. n and it has fixed a very tnug berth ' the stock market manipulator the man io acts aa a sort of selling agent for un rwrltlng syndicates. Syndicates are paid usually In the tecuri t of the companies tbey underwrite. The Jck market operator turnt those scrurl- Into cash. Thia Is why underwriting ndicate often remain In existence long ter the apparent use for them has ex red. Uttle it known outside of Wall ttreet nklng houses of Just what the part is ilch it played by thete syndicates. The pat remarkable Illustration of the work g of such a syndicate It found In that ilch underwrote the tteel trust securities, id Ha operations will terve at a type of .oae of all the reel. Attention was called by Prof. E. 6. Meade the University of Pennsylvania, in a lec re before the New Tork university re ntly, to the fact that the formation of the eel trust waa brought about because New irk banking houses still held a consider le amount of eecurltiet they had received commissions for forming the smaller steel usts American Steel and Wire, Federal el, Steel Hoop, etc. There were six eh corporation!, aside from the Carnegie mpany. These trusta had been organised on tb, lght of the great demand for Iron and eel producta in the yeart 1S98 and 1899. any of them had been capitalised up to lelr fullest earning capacity, independent any material asseta. They had unified a sat number of miscellaneous companies, Jd many difficulties had been encountered f the bankera who guaranteed their se. iritlet. Messrs. J. P. Morgan A Co.. for tample. hud underwritten the Steel Tube impany. That It to aay, tne Morgan company had treed to furnish the necessary capital for archcaing the securities of the subsidiary smpanies and to provide working capital r the tube company when fully organized. I return for this cash which wat supplied i, Morgan company received a large xtount of atorkt In the new corporation. Ikewlse. a large amount of securities of i American Steel and Wire, Steel Hoop, In Plate and other companies passed Into hands of Wall street bankera. So long at there waa a great demand for el products, aayt Prof. Meade, and the akrr of the finished product bought their .w materials from Mr. Carnegie, there at no trouble. The bankers were gr a du ly telling their stocks through operators id there wat no complaint from any urce. In 1800 the market for the finished oduct fell off tome, however, and the fferent ateel trusts propoted producing elr own raw materlala. Mr. Carnegie threatened that If thlt waa me be would build large producing plants id compete with the product companies, alt action on his part would have meant .la for the other com pan lea aud the total at of the holdlngt of the Wall atreel takers. It waa deemed necessary to buy it Mr. Carneglt and consolidate all of the Ml-producing trutta. To effect thlt consolidation it waa neces iry ta purchaae securities amounting to aout $1.0(10,000,000. Working capital had to supplied to the new holding company nd cash bad to be furnished for purrhas if such of the necessary aecuritles aa lust be bought In the open market. The kind that's Right m I T ti---w.. t I BLATZ BEER MILWAUKXB enjoys a reputation never be for attained by a product of lu kind. A perfect brew, wi lb. natural, C I agbtrul flavor. Different kTltll adapted to tftarent taatea. Try a cat. Tf 11 not regret It. BLATZ MALT VI VINE (Koa-lautsieanti Tonic. Druggists or direct. "U. tun MEw'DtG CO, MlJwaasea. OMAHA DJLABCH. as)a. Messrs. J. P. Morgan A Co. therefore or ganized a syndicate which agreed to tupply $-u.(1'.0"0 la cash upon Ita belr.g demanded by the managers of the undertaking. Haw ta Get the Mllllea. It wat obviously Impossible for any on, banking house to undertake to tupply euch a turn of mopey. Even had It been pos sible, tb risk of lost would hive been toe great. Hence, while J. P. Morgan A Co. themselves tutaacrlbed a large amount ot the sum, the major portion of it waa dis tributed among a cumber of banking es tablishment. The first and only call made for payment waa for $25,000,000. This sum waa paid to the tteel trust, to be used when necessary to tecure the securitiee of tubsldiary cor poration and to aupply working capital. In return for this psyment the syndicate wat paid S4!.St7 shares of the new common and an equal number of shares of the new preferred atock (market value about $84,. OOO.OOO). It was expected that this payment of $25,000,000 would , be returned, but the syndicate guaranteed the flotation of the entire issue of securities tome $1,410,000,. 000 In all. It waa never expected that the syndicate would ba called upon to tupply the total amount of money subscribed. In fact, such a call would have been decidedly embar rassing. Here la where the value of the guarantee came In, however. With such a guarantee as this, and with such a payment of stocks to operate with, the syndicate managers could go to trust companies and borrow money upon the securities received at commissions. With this cash the re mainder of the deal could be financed. It could not have been possible without such ruarantee. The process it to gradually pay off the loant at the trust companiet, sell the se curities and send dividends to the members of the syndicate. In the case of the steel trust the I2L,000,00 was returned within a short time anJ It Is expected that the total dividends upon the syndicate's subscrip tions wil amount to about $40,000,000. Thlt will be 20 per cent of the amount sub tcribed about 160 per cent of the amount paid In. No turn profit at thlt was ever before made by aucb a transaction in thia coun try. It was explained by the manager, however, that the profit wat not abnormal when the risk undertaken waa considered. The risk might have been said theoret ically to be epitomized as follows: The possibility that all of the subsidiary corn pan lea might not be aecured, the possibil ity of panic conditions in the market, which would render the aale of the com mission tecutitiet difficult the possibility of impedlmenti In the flotation of the rompany'a securities. When It Is realized that the capitalisation of the Steel trust waa about $400,000,000 In excess of the ag gregate capitalizations of the companlea consolidated, the element of rusk in thia last possibility may be teen. This, then, It the method of operation of the tyndlcate. Ita theoretical purpose is to supply auch cash aa may be needed. Its practical purpose Is to furnish the necessary credit. When the necessities of the case make it essential to provide cash and credit, the scheme la not considered ao successful. The profit of the syndicate Is reckoned aa a commission upon Ita lia bility, not upon the amount ot cash paid In. It Is an application of the nam, prin ciple as that upon which bankera make loana. They agree to furnish money. Aa a matter of fact, they usually merely fur nish a book credit, and upon that they charge lntereat. As in the case of syndi cates, the collateral is very much more in secure, the interest charges are impliedly very much larger, although there la the possibility of there being no gain at alL Flrat araslleatea. Syndicates war, first organized in Eng land in about the year 1640, and In floating all laxfce corporation and Joint atock com paniet tince that time, they have been ex tensively employed. The Bank of England ttaelf, in ita original organization, wat planned upon very much the same lines aa a bankers' tyndlcate of today. It was char tered primarily to guarantee a govern mental loan in the latter part of the aeven teenth century. The same plan haa been utilized In nearly all large flotations of stock in Ecgland since then. . Strangely enough, tbla method of floating securitiee was not brought over to this country until 1890. Before that year, Is sues of capital had been floated by direct subscription. There had not existed the need tor a syndicate to provide working capital or to buy up the tecurlllea of com panlea which it waa desired to incorporate in a combination. The trust certificate plan had served the purposes cow served by the great New Jersey trusts. After 1S90, when the trust certificate plan had been dislodged by the courts. It became cecesaary to combine corporations by pur chasing their shares. This created the ne cessity for enormous capitalizations, and for great aumt of working capital to acquire control ot tubsldiary corporations. The syndicate plan very naturally became In grafted upon the financial machinery of thlt country. Casuists figure upon other ponalbllitlea of the syndicate auggested by the proposed plan to convert $200,000,000 of aharea of the preferred stock of tb, United Statea Steel corporation into bonds, and make an addi tional isau ot $50,000,000 in bonds. An un derwriting syndicate has been formed to guarantee thia deal, and it la to be paid tome $10,000,000. J. P. Morgan A Co., ot course, get merely a commission, aa man ager, in addition to the profit upon the turn they subscribe to the total guarantee. Owing to the rlak Involved in these deals It ia always considered wisest to distribute the subscriptions as widely as possible. It is said that the organizers of the Steel trust have at yet not been able to aell tbelr holdings of stock in the market. They still hold control, however, of the property, and can vot, any action that may be desired. It is understood that it la thlt speculative Interest which Is principally concerned with the conversion. Two possiblUtle lay In the conversion, it la pointed out. The first ot thea, ia that a 6 per rent bond will be eaaler to tell In the market than a speculative atock, especially aa the $300,000,000 of steel first mortgage bonds ar, greatly inferior to the actual value ot th material assets ot the trust. Secondly, the control of $126,000,000 of th, new second mortgage bonds will give their holders th, powar to tore a foreclosure and reorgaaiza tlon of th, company In case ot a failure to meet fixed cburgea. Ia case a large number of independent companlea should grow out of the promia ot proflit now afforded by the great pros perity ot the ateel trust aad the galea of tb truat should thereby be curtailed to th, extent ef rendering lb corporation unable to pay th lntereat an the second mortgage bonds, a foreclosure could be brought about Th competing concern could thea b brought into th fold, tb company entirely reorganised, new capital Seated aad mor profits eur4 for banking syndleate. It it not argued that thia la what prom ise to be th case with the steel trust, but that th posslbilKlea of profit to under writing syndicate hav a conspicuous illus tration in th prof ts gained by th under writers of tb various securities floated by tb United Etatee Steel corporation. Syndicates aa a rule feel thai tbey ahould oak about 10 per cent on tba amount of their tubaciiptluns to these underwriting agreements. The amount of cash called lu la ordinarily about 10 per cent, though this sometimes rises to $0, 10 and to par cant Syndicate, hav Ui known aa recently aa 1S0 to be In terlous straits and hav to supply the full amount subscribed, and then be in doubt about a dividend. This doe not btppen often, however, as tbe man agers of syndicates are usually houses of tuch standing that the success ot the scheme is practically guaranteed befor it la ever launched. Islss Tana Deal. Outside of the steel syndicate th most profitable underwriting deal of recent yeart was that of the reorganization of tbe Vnioa Pacific hallroad company. Its profits were ever publicly stated, but the circular con taining the reorganization plan stated that tbe syndicate had pledged Itself to supply $10,000.0', if needed. It wat to receive $6,000,000 in preferred eharet, of which Kuhn, Loeb Co.. at bankera. were t re ceive $1,000,000. The syndicate wat never called upon to pay much cash and t'nion Pacific tnaret are cow aelllng at around 102 and 103. The syndicate which underwrote lb, re organlzstion of the Erie railroad received $15,000,000 In new prior lien 4 per cent bonds, and contracted to furnish up to $14. 000.000 in cash to the new company. In ad ditlon, the firm of J. P. Morgan at Co., aa depositaries of the old securities which were to be exchanged for the new, were to receive $."00,000 In cash aa compensation. Last October the Mexican National rall road'a affairs were readjusted. The syndi cate which carried the scheme through bought for $12.!6T,0O0 rash the following securities, to which are added tbelr present market quotation: Prior lien 4H per rent bonds, $9,221,000 (par value), present quo tation 102; first consolidated 4s, $3,595,313 par value, quotation 81 H, and preferred atock, $2,400,000 par value, present quota tion 41. In reorganizations the underwriting syn dicates always assume responsibility for aaseesments not met by shareholders. This was a prominent feature of tbe Atchison re organization plan which wat made public on June 21. 1894. The reorganization com mittee. In a circular to the stockholders outlining the plan of rehabilitation, said: "Syndicate! may be formed on reason able and usual terms to furnish tbe money needed in case of foreclosure to psy tbe non-assessments, pay bondholders their shares of the proceeds of the sale, and such syndicates by such payments and to the extent thereof shall be entitled to and shall represent and succeed to all tbe rights that the bondholders receiving euch psy ments would have been entitled to If they had assented to this plan and deposited their bonds." Tbe assessments on the common stock of Atchison amounted to $10,000,000 when the company was reorganized, and a syndicate was organized in London and thia country to supply the cash. Thlt syndicate was to guarantee tbe exchange and flotation of the following aecuritles: $129,000,000 gen eral mortgage bonds. $87,000,000 second mortgage bonds, $12,000,000 prior lien bonds and $102,000,000 of common stock. Just what sum was cleared by the tyndlcate In thia reorganization w-at never announced, but the Immense responsibility assumed Justi fiet the ttatement that the profit wbb very large, $10,000,000 or $12,000,000 being re garded as a conservative estimate. This matter of guaranteeing assessment, was a very important one. also In tbe re organization of the Richmond t West Point Terminal company one of J. P. Morgan's great accomplishments. In the Richmond Terminal company which was a holding company, Interested in the Richmond A Danville, East Tennessee, Virginia A Geor gia, and other railroad properties In the eouth were tuch lnteresti aa General Sam uel Thomas, Calvin S. Brlce, Patrick Cal houn, John H. Inman and Alfred Sully. In the general crash of '.he 1893 panic period thlB company went to pieces, and J. P. Morgan A Co. reorganized the propertlet into the present prosperous Southern Rail road company. The commission of the syndicate which floated the Becurltiet of thit new company wat In atock at that time valued at $7 a there, but It now tell ing at $39. It it tupposed that the tyndl cate sold ltt holdings at about 25 thut bringing Into ltt coffers a very comfort able number of millions of dollara upon ltt guarantee ot tome $10,000,000 or $15,000,000 of cash. Mr. Moriss'i First Triumph. The first great achievement of J. P. Mor gan was his first reorganization of the Reading railroad. It had been controlled for years by Franklin Gowen, who had done many spectacular things, such as floating the very elusive "deferred income bond." There was a contest between the Gowen Interest end DrexeL Morgan c Co., which resulted in a readjustment ot the company's affaira. Mr. Morgan is con ceded in Wall etreet to have made very large commissions by this deal. The road waa turned over to Austin Cor bin, and very large net earnings were re ported. A. A. McLeod attempted to com bine the coal and carrying industries on the Reading lines, and th property went to smash. Following tbe panic of 1893, Mr. Moigan again reorganized the road, reaping large commissions onee again. The first of the large industrial com panlea to be reorganized was the Sugar trust. Its reorganization waa forced by the fact that ltt charter under tbe lawa of the elate of New Tork had not been legally drawn, and It wat forced to take refuge In New Jersey. The Cordage trust was the first of tbe big Industries to be really reorganized after the modern fash ion. Ita troublee furnished one of the moat pirtureaque Incidents of the panic of 1893. Mr. Morgan wat called into consultation in thia readjustment, but the company bat had two reorganization since lu first dis integration. In tbe formation of many large eomblna tlons the underwriting agreement U pri vate and only the managers appear as financing the deal. In the Northern Securi ties combination, for example, no syn dicate managers appeared at aJL Control of the atocks to be consolidated waa al ready aecured ard that any consolidation waa to be effected wat oatenslbly not oue ot the purposes of tbe company's forma tion. Share of the Northern Pacific and Great Northern railroads were deposited directly with th. Northern Eecurltiea com pany without the intervention of bankera, and J. P. Morgan A Co. themselves se cured the transfer of aome $78,000,000 of Northern Pacific atock from the I'nion Pacific interests to the Northern Seruri' let company without one dollar of commission. Such waa the testimony ot Mr. Morgan be fore the United Slates commiasloc in tbe Peter Power bearing. Often a combination la brought about by tnaid Interests entirely, bankera appearing merely aa depoa it axles. Tats waa th method used in the organisation of the Glucoae truat or Corn Producta company. The capitalization waa $80,000,000, but no underwriting syndicate appeared to guar antee the flotation of the securities. All of this was done by "inside interests," who, of course, received a large commission. To catalogue tbe profits which hav, been cad by underwriting syndicate in Wall atreet in recent years would be to make a Hat of all rbe Important reorganizations and combinations w hich have been effect-d, record tbe amount of money guaranteed by the underwriting syndicate and fake 20 per cent ot tbe total sum. These tyndl cate have amounted to very much mor within tbe laat three yeart than ever befor, becauac of tbe custom which had grown up of not calling for mor than a email percentage of tb total. Previous to 189t tbe total Bubacriptloxt waa uaually called for, but up to that year tbe $2M).000,oo corporation waa alnuiar aa entire atranger. Tb profit to be drlv4 truss uadar- ' (jtrtmm j, , ommdj two), .- "'" - .-....-!- --v. r , r- tSti tT j . jjW-;irwv.'. ,,,.t.' ,mwm-xrmmv m i .... m, iim -ir mtmmM. ni.n.irym." iwr.ii. .y;-tw.--...- .,,,, ..-, .. ; . 5 BaBBBIBHaaBBBSMBBaa Operations Avoided. When a physician tells a woman Buffering with ova rian or womb trouble that an operation is necessary, it of course frightens her. The very thought of the operating table and the knife strikes terror to her heart. And our hospitals are full of women who are there for ovarian and womb operations ! It is quite true that these troubles may reach a stage where an operation is the only resource, but such cases are much rarer than is generally supposed, because a great many women have been cured by Mrs. Pinkham's med icine after the doctors had said the operation must be performed. Lydia E. Pinkham's Vegetable Compound has been very successful in curing ovarian troubles. In fact, up to the point where the knife must be used to secure instant relief, this medicine is certain to help. Ovarian troubles are easily developed from womb troubles, and womb troubles are so very common that ovaritis is steadily on the increase among women. It is, nevertheless, a most serious trouble, and to recommend wrong treatment for it is a crime for which there cannot be too deep a penalty. It is, therefore, with full consciousness of the serious ness of the disease and the steady failure of other medicine to cure it, that we present for ovarian and womb trouble Lydia E. Pinkham's Vegetable Compound as the most certain to help of any medicine in the world to-day. Any person who could read the letters in Mrs. Pinkham's files at her office in Lynn, Mass would be convinced of the efficiency of Mrs. Pinkham's Compound. The strongest and most grateful statements possible to make come from women who have escaped the operat ing table by the use of this medicine. Let any woman suffering from these troubles, or anything which may de velop into them, write and get Mrs. Pinkham's advice. If you are beyond the reach of the medicine, you will be frankly told so, but, if not, you will be fully and carefully and kindly advised. The most serious of all the diseases of women, as well as the minor ills, are promptly overcome by Vegetable Compound. Earnest Words of Gratitude. M Dxab Mm. Prim am : Your Vegetable Compound bu completely Ciredme of tba worst form of womb trouble, and made me a Btronir, healthy, robust woman. Before using- Lydia E. Pinkbam'a Vegetable Compound, I Buffered with aevere paint in back and aide, headache and nervouBnesa. Menses - -on Id aometimea occur every two weeki and once I had a ne ve re hemorrhage which sted a month. I waa confined to my bed ana the attending' physi cians told me I would have to undergo an oper ation as aoon aa I was strong enough. I read in one of your little books several testimonials from ladies who were cured by your Compound after having been told by their doctors that an operation waa necessary, and I made up my mind then and there to commence taking your Compound. I did ao and it has completely re stored me to good health. I have gained twenty two pounds since taking it and my flesh is aa solid aa a rock. My friends remark about the eh an re in me. I am a living advertisement of what Lydia E. Pinkham's Vegetable Compound can do, and have In fluenced many of my friends to try it, which has proved very gratify ing in it results, f thank yon for restoring me to health. AUXIE HA.KILXY, 209 & Sangamon St., Chicago, 111. ANOTHER OPERATION AVOIDED. " Pi IB Mbs. PfWKHAsi: I feel Tery grateful to you for the benefit I derived from your kind advice and remedies, 1 was troubled with a complication of female troubles, had ovaritis, painful and irregular menstruation, leucorruaea, nervousness, and weaknebs. I had no appe tite and could not sleep nights. The least exertion would cause short ness of breath and dull pains in my hips and side. The doctors all advised me to have an operation and have one of my ovaries removed, but this I could not bear to think of. I was induced to try Lydia E. Piakham'a Vegetable Compound, and after taking the first bottle I was much improved. It renewed my appetite, health, and strength. I continued taking it, also your Blood Purifier and banative Wash, until entirely cured of all my troubles. The pains have never returned, and my health is splendid. " Your remedies have been a boon to me. and I am sure many a woman owes her life to them." MAEIE WEBB, 818 Columbus Ave., Boston, Mass. a.'in-Sl Ms ANWH H A T 1 1 V " Dkab Mas. PnruAat : I feel It my duty to publish the wonderful help Lydia E. Piokham's Vegetable Compound has been to me, I waa like a crazy person could not eat or sleep; there was no reet for me day or night. Physicians examined me and said an operation was necessary. Before undergoing it, however, I determined to try Lydia E. Pinkham's Compound. I am ao g-iad I did, for it cured me. I am a well woman now and can do any kind of work. I want this published throughout the land, ao that all my Buffering sisters may read, and if in any way amictea witn female troubles, they may be induced by my a ice re statement to try this wonderful Vegetable Compound and be cured." MES. MAEGAEET BAMPORD, Centennial Ats., Crescent Peach, Severe, Ma t.i t tl'i ANNA, ASTON " Dxab Mba. PlirKHAsf : I wish to aend yovi my testimonial stating th grand effect Lydia E. Pinkham's Vegetable Compound has had on my health. I was suffering to such an extent from ovarian trouble that my physician thought an operation would be necessary. Your medicine having been recotnmended to me, I decided to try it. After using several bottles I found that I was cured. My "ystem was toned up and I suf fered no more with my ovaries. Your medicine is th mateat boon on earth to Buffering women." MES. AXKIB ASTON, Box 1ST, Trey, Mo. $5000 " ' dolKJSibsd witb th National Citv Bank, of Lvnn. to any person who can show that tbe abov taatimoniala are not genuine, or war pu w.m qjwHt uumw." biiu aw im a a juwuss iaj.. ajtto, run Owina- to th fact that om skeptical nsople aav from time ta time asaaadnnj! th gntuiMtiHa of th tauum'tnial kitten w ar constantly pubiMhiag, w Lave nJ City Bank, of Lynn, Haas.. I3,(AJu, wnicfc win b paid Mialiert befor bauihur tba writint- hav frown to such an extent that many banks cf cCDiiucra.itie' reputation in Wall atreet rely almost entirely upon surb profits for their incomes, letting tbe con ventional banking buelneas entirely aloos. Bometlmea tb profit are not received in cash, but In bonds or stocks, and tbey have t be disposed of. Thia eiplalna many sudden offerings of securities in tbe mar ket. Oaeratar Part. If all tb members of tb syndicate re ceiving profit in auch manner aa thia were I attempt ta realise tbelr caab value In tb market tber would be a general slaughter. It becomes aeceaaary, tberefor, te employ th skilled market eperaior. A j weil known operator has been confessedly J I maraeunc tbe boldinas of th steel under- j writers for tbe year past, but tbe market o far has not responded as It had been hoped would be tbe case. 1 It was a vary much limpler matter when 1 ryndlcate undertake to guarantee tbe j flotation of a aingi ,Usue of bonds or 1 ttotkt, tuch at tbe Issue of $30,000,000 ot j Atchison debenture several months ago and of flO.000.000 of atock of tbe American 1 Telephone and Telegraph company a few weeks later. Bucb issues are turned over to syndicates, because the recommendation of certain bankers to the public of tbe gilt edged quality of a security is worth to tb corporation iasulng tb security very much ntor thai th 2 tat or (reaMj- per ont paid as commission for th underwriting com mitment. At such iaaues by strong corpo rations are ordinarily ao eaay to Coat tba commissions paid ar compenaailngly small. Following tbe custom understood to have been Inaugurated by J. P. Morgan A Co., houses which form syndicates and act as managers now usually subtract a fifth of the net profits aa compensation for tbelr special servioes. A recent heavy bond Issue by a very large system of railroads waa made on a i per cent basis to tbe rail road, witb tbe payment In addition to tbe bankers of a flat fTr.OOW', tbe hankers de ciding on the selling price to tbe public, which, ia the lnatanca, allowed a com mission of 1 per ceuu Every Woman KlSlfcL, !.( iNA ""IPjw - Li.sr. bjt MnS stftu.t. fir 11- au v"T iusuaxwl boofc l J.S f!T w, I ' rul- pniauirs ftiMi ttmei.uitt ta- &j ar niU4ll., M Llt H4BIBU fV tV 'r'k M l ur kal by IIIKIH1X at MrfOUEIX DRIG CO, Corner Plxieemh and Xod-e streets. Omaha
