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1913.] SENATE JOUKNAL. 767
issue into halves was to save interest money and other expenses, because
all of the money can not be used at once.
4. After the arrangement had assumed the condition indicated in the last
preceding paragraph, it was decided that the English issue would be made
by the house of Linton, Clarke & Company. Upon inquiry at your bankers
you will undoubtedly learn that the firm named is one of the leading, if not
the very leading house of issue in England. This house itself agreed to
take $2,500,000 of bonds, and among its friends it definitely arranged to
place all the remainder of the $6,250,000 of bonds which were to be sold
in England.
5. Linton, Clarke & Company undertook to make the issue and to actually
produce the money from the sale of the bonds on one condition, namely:
That we should procure from the continent a letter from various bankers
that they would on demand take the other $6,250,000 of bonds.
6. This arrangement with Linton-Clarke was not reduced to a written con-tract.
It was contained in letters and in oral interviews, but there are abso-lutely
no uncertainties as to the agreement. It is definite and precise that
when we can produce the agreement from the continent, Linton, Clarke &
Company will perform their half of the contract. This information does not
come to us second hand, but comes to me from personal interviews with
the members of the firm of Linton, Clarke & Company and with their law-yers
and from letters and telegrams which I have had from the firm. The
last telegram was dated January 22, 1913, and contained a positive state-ment
of the readiness of the firm to proceed as soon as we were ready with
our agreement from the continent.
7. When these terms had been reached with Linton, Clarke & Company,
our representatives went to the continent and had interviews with the
bankers in France, Germany, Switzerland, Belgium, and Holland, and made
oral arrangements with banks in those countries to take the other $6,250,000
of bonds.
8. I« did not personally see all of the bankers on the continent, but I did
see the French bankers, and I received from them assurances which left in
my mind no doubt that the continental arrangement was in as satisfactory
shape as it could be put during the summer holidays.
9. The arrangement on the continent at that time was that the bankers
said that they would take the $6,250,000 of bonds as soon as the business
season opened in the fall, unless in the meantime there should be financial
or other complications of such nature as to make it unfair to ask people
to issue securities.
10. Just as the fall business season arrived the Balkan war broke out, and
the continental bankers at once told us that they could not undertake to
issue securities while the war was going on, and it was quite evident from
the investigations we ourselves made that it would be unfair to ask that the
bonds be issued during the hostilities.
11. Within the last month our representatives have again visited the con-tinental
bankers and asked their views concerning the situation, and I am
informed that in not one single case did a banker say that he would have
to take the matter up for later consideration, but on the contrary in abso-lutely
every case the banker said: "We want the securities and are ready to
take them as soon as peace is declared."
12. The telegram received yesterday asked for certain papers and re-quested
that Captain Mayer, who has been in this country in connection with
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| Title | Page 777 |
| Full Text | 1913.] SENATE JOUKNAL. 767 issue into halves was to save interest money and other expenses, because all of the money can not be used at once. 4. After the arrangement had assumed the condition indicated in the last preceding paragraph, it was decided that the English issue would be made by the house of Linton, Clarke & Company. Upon inquiry at your bankers you will undoubtedly learn that the firm named is one of the leading, if not the very leading house of issue in England. This house itself agreed to take $2,500,000 of bonds, and among its friends it definitely arranged to place all the remainder of the $6,250,000 of bonds which were to be sold in England. 5. Linton, Clarke & Company undertook to make the issue and to actually produce the money from the sale of the bonds on one condition, namely: That we should procure from the continent a letter from various bankers that they would on demand take the other $6,250,000 of bonds. 6. This arrangement with Linton-Clarke was not reduced to a written con-tract. It was contained in letters and in oral interviews, but there are abso-lutely no uncertainties as to the agreement. It is definite and precise that when we can produce the agreement from the continent, Linton, Clarke & Company will perform their half of the contract. This information does not come to us second hand, but comes to me from personal interviews with the members of the firm of Linton, Clarke & Company and with their law-yers and from letters and telegrams which I have had from the firm. The last telegram was dated January 22, 1913, and contained a positive state-ment of the readiness of the firm to proceed as soon as we were ready with our agreement from the continent. 7. When these terms had been reached with Linton, Clarke & Company, our representatives went to the continent and had interviews with the bankers in France, Germany, Switzerland, Belgium, and Holland, and made oral arrangements with banks in those countries to take the other $6,250,000 of bonds. 8. I« did not personally see all of the bankers on the continent, but I did see the French bankers, and I received from them assurances which left in my mind no doubt that the continental arrangement was in as satisfactory shape as it could be put during the summer holidays. 9. The arrangement on the continent at that time was that the bankers said that they would take the $6,250,000 of bonds as soon as the business season opened in the fall, unless in the meantime there should be financial or other complications of such nature as to make it unfair to ask people to issue securities. 10. Just as the fall business season arrived the Balkan war broke out, and the continental bankers at once told us that they could not undertake to issue securities while the war was going on, and it was quite evident from the investigations we ourselves made that it would be unfair to ask that the bonds be issued during the hostilities. 11. Within the last month our representatives have again visited the con-tinental bankers and asked their views concerning the situation, and I am informed that in not one single case did a banker say that he would have to take the matter up for later consideration, but on the contrary in abso-lutely every case the banker said: "We want the securities and are ready to take them as soon as peace is declared." 12. The telegram received yesterday asked for certain papers and re-quested that Captain Mayer, who has been in this country in connection with |
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