New-York tribune., 1909-06-03
THE PARIS STEEL DEAL
EVASION OF FRENCH TAX
Trust Company to Issue Certificates
for / 900 900 Shares.

Paris. June 2-0ne million shares constitute the
amount OF United States Steel common which the
syndicate formed by Morgan. Harjes & Co. OF
Paris. in conjunction with J. P. Morgan & Co.
of New York. has arranged TO list on the Bourse
here
The syndicate will deposit with a trust company
OF New York the name of which has yet been
disclosed, this amount OF stock against which the
trust company Will issue its certificates of
deposit in such form to meet the requirements
Of the French fiscal authorities and the rules Of
the French Stock Exchange. The certificates will
be exchangeable on demand. and vice versa and the
dividends Will be paid by Morgan. Haries & Co.
the Credit Lyonnais the Compton National d Es-
compte and the Societe Generate.
The formula found by the Morgans for the intro
duCton of Steel shares the Paris Bourse solves
the riddle for other American securities and is ex
pected 10 he the precursor of American invasion
The of this listing created favorable i'm
preston on the Bourse here to-day, It was known
10 have the backing of leading French financial
houses. The demands for participation largely ex-
ceeded the amount available.
Confirmation the Paris cable dispatches saving
that negotiations for the listing large block of
the United States Steel Corporation common stock
on the Paris Bourse had been concluded. was OBJ
tanned from authoritative in this city but It
was said that negotiable certificates and the
stock Itself would be traded in II announced
at the Offices Of J. p. Morgan & Co. that large
block Of United States Steel common stock had been
SoIu 10 t3rlS syndicate This block OF stock,
which. according to advices from Paris, amounts
10 Looo00 shares, Will he, It is said. deposited in
trust with the Bankers Trust Company, of this
city, which Will give its receipt for the deposited
stock Of the Paris syndicate. The French holding
company viii then issue against the stock its Ger
tfcates Of distribution" which Will be negotiable
on the Paris Bourse
II was pointed out that serious drawback TO
listing stock like United States Steel the Paris
Bourse was the fact that the French government
would require Of something like s. a share
the whole outstanding issue, irrespective Of the
number OF shares actually listed there. The plan
Of having negotiable certificates instead of the
United States Steel stock dealt the Paris
Bourse has been carried out before in the case Of
such stocks Illinois Central Union and Southern
Pacific, Missouri, Kansas & Texas and Rock Island
all Of which dealt in the Amsterdam eX-
change by means Of negotiable certificates issued
through a holding company such as has been formed
10 trade in the Steel shares in Paris.
The announcement that a large block OF Steel
common shares had been taken by the Paris inter
ests was regarded in Wall Street ample ex-
plantation Of the advance in the price OF that stock
from around Is to yesterdays new high record or
6514- It was said in brokerage circles that the ac-
cumulaton Of the stock by the Morgan interests
with a view 10 turning il 10 the Paris syndt-
cate had been going on for several weeks.