Usually theThe Underwriter. type of underwriting employed has been this : A promoter engaged in the formation of a combination and needing a certain fixed sum in cash, would make an arrangement with a financial institution to sell to it at a value agreed upon such portions of a named quantity of inventory as were not disposed of to different customers before a certain fixed date. For instance, the financial institution may comply with furnish one million dollars in money (£200,000) in return for say 4 millions of stock (£800,000), or to purchase itself at a set worth all the remainder of the $4,000,000 stock unsold at the date agreed upon, the bank itself to become the sales agent. It's said that the American Sugar Refining Company on this account has been capable of secure, with appreciable regularity, one-sixteenth of a cent a pound extra on its refined sugars than the unbiased refiners, the latter being frequently compelled to cut their prices to that extent so as to make sales.
