Again Dillon

When the elder J. P. Morgan created the U. S. Steel Corp., he sent blocks of the new stock to his clients with a demand for their checks forthwith. They complied. J. P. Morgan clients do not refuse J. P. Morgan offerings.

Nor do Dillon, Read &Co. customers refuse Clarence Dillon. Like the Morgan house, Dillon, Read & Co. are bond wholesalers, selling large blocks to the retail investment houses and banks; but they also sell directly to the investor.

They began last week selling bonds of the German United Steel Works, the combination of the Thyssen, the Phoenix, the Rheinstal and the Deutsch-Luxembourg. This grouping ranks in wealth and production only below the U. S. Steel Corp.

Two months ago Dillon's agents had integrated the units of the German combination to make them function as a single concern. The refinancing--$60,000,000--he would supply as soon as the reorganization documents were perfected. Two weeks ago these were so near ready that he loaned the Thyssen people $5,000,000 for working capital.

This week he was prepared to offer the $60,000,000 publicly. But the "Big D" banks of Germany-- the Deutsche, Dresdener, Disconto Gesellschaft and Darmstadter, those pre-War drillmasters of German industries--wanted a share of the issue. German funds have suddenly become available for investment, can be had at 2 1/2%. So this week he will offer only $30,000,000 of the United Steel Works bonds; the German banks, the balance.

Somewhat similarly, last week he joined with certain Dutch and Swedish banks, as well as U. S. investment houses, in selling $25,000,000 of United States of Brazil bonds. A month ago he sold $35,000,000 of like ones, has the whole $60,000,000 protected by a sort of first mortgage on Brazil's consumption taxes and import duties.