New-York tribune., 1909-07-25
THE LISTING OF STEEL
MAURICE LEON EXPLAINS
FRENCH POINT OF VIEW.
Frances Legal 4dviser Here Says
Delay Is in No Sense Defeat
for Dir. Morgan.

ASKED ABOUT the failure Of the negotiations 70
list United States Steel common stock on the
Paris Bourse, Mr.. Leon said that ''the temporary
setback to the plan was due not to any hostility
on the part Of the French government, nut prin-
cipaly to the Uncertainty in France over the
| action TO he taken by the United States Senate
tinance Committee with regard 10 the tariff on
| French exports 70 this country 1t was also
caused he said. ty the opposition Of the French
steelmakers and other interests to the building
up Of American Industries with which they We're
| IN competition. He explained further that tho
Paris BourSe was a staid institution, which did
not undertake any new policy without weighing
the question very carefully and declared that
the delay in listing Steel in Paris was not in
any sense a defeat for Mr.. Morgan as he
not the originator of the plan to put it the
Bourse there.
II have been surprised to notice in some quar-
ters in this country" he added. - tendency TO
consider the adjournment OF the negotiations to
list Steel common in Paris defeat for Mr.. Nor
gan This is a mistake. It has come TO my
knowledge in 4 very positive way that the
proposition to list Steel in Paris came not from
American but from French sources. The error
in 4 nutshell. is this:
The seventy-one official brokers doing busi-
ness on the Parts Bourse each ot them the
owner OF "A seat by government appointment
have noticed that great deal Of speculative
business has le1 their market, and that Gus
toners formerly operating through them have
been operating by preference through London
and New York. So, although few years ago
they were hostile 10 the introduction Of Aneri-
can stocks in their market because they feared
the consequences Of their own market closing
q; about the .imc OF the opening OF the AmerI-
can market. the stagnant condition OF their
market has mace them realize the necessity OF
the infusion Of activity. and when certain
Paris bankers Y:oPosed TO them the introduction
Of Steel common they received the idea most.
!avorably.
FRENCH SYNDICATE MADE PROPOSAL
'Thereupon MIR. Morgan. received q proposition
from a French syndicate and accepted II. taking
II for granted that that syndicate as prepared
TO carry out it's plan. Hence II steel is not
listed in Paris today It la both unfair and IN
accurate to speak Of t. az defeat tor Mr. Nor
gan. for it IS nothing ot the Kind.
I say In rassing that the president OF
the French Stock Exchange. NJ DC TevneulL
said 70 me the day sailed that = American
securities were ever ntroduesd into the Pa-quat
the credit must 60 70 mr Morgan
Mr.. Leon went on 70 say that hs did rot be-
lieve any obstacle OF legal or hscal nature stood
in the way Of the LISTING q the stock in Paris
and added:
Temporary conditions might have r-ade Il
highly desirable that Steel common alone ot all
American stocks should have been introduced
in Paris this surmer. But the Pars STOCK Ez-
change ia a stsid institution. which does not
undertake new policy without Weighing the
matter very carefully and the French syndicate
which made the proposition 70 Mr.. Morgan did
not give sufficient consideration to the fact that
whe it may have been highly desirable 10 in
troduce Steel common IN Paris this should have
been done part OF a comprehensive plan for
the listing there not only Of that ssue but Of
several of the leading American stocks, particu-
lsrly railroad stocks.
Now when the news concerning tho proposed
Introduction of Steel common leaked out IN
Paris, OF course hostility to the plan was
aroused There we're the French steel companies
which did not look with favor upon the intro
duction OF stocks Of foreign competitor The
financial institutions which were not in the
plan may also have wished TO throw cold water
on it, simply because they were not interested in
II But SO far as the government was con-
cerned. in my opinion, what induced II 10 defer
the entire question 10 a subsequent day was
that bout the time when II proposed to
ask the French public 10 take interest in
large American industry and TO strengthen the
already brilliant prospects OF that industry by
taking out Of the market a considerable block
Of its common stock the United States Senate
Finance Committee was engaged in the task Of
increasing tariff schedules on French products.
ATTITUDE OF FRENCH GOVERNMENT. |
1t was only natural that the French govern
ment should reserve its ultimate decision as TO
Steel common because the introduction of Steel
common part OF greater question which
I have already indicated. I believe and a great
many people in France believe. that the time
has come when the French public. which saves
two billion francs year. which is a measure
of its yearly investing power, should have an op-
portunity to invest in American securities. l
believe, furthermore. as do a great many others,
that American industries bound to benefit
to great extent from the consummation of that
idea, because the French people do not buy
securities for speculation but for investment,
and securities once bought in Paris laid
away and do not see the market again.
1T is self-eyident that If. after interesting
herself in the development of Russia, her ally.
and also in the development of many other coun-
tries. France were so to speak. TO take part
ners interest in American industries by buying
large blocks of stocks of American railroad and
Industrial enterprises the industrial develop
r,ent of the United states would take a wonder
f,,1 growth and America would become a for
r,idabIe competitor OF England and Germany in
all the markets of the world where their manu-
factured products are traded in In return for
+Lis +. does not seem unreasonable that France
shouId ask that her products which do not COM
,ete with American products should get favor
able treatment in the new tariff law. France is
a manufacturer of articles of luxury; her wares
cannot be initiated anywhere. and there is no
sound reason why E'rench exports 10 the United
states should be interfered with. To-day there
reiS.ns great apprehension in France over what