New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-03
PLEADS FOR FRENCH
INVESTORS IN FRISCO
Maurice Leon Says All Concern
ed in Bond F|otation Should
Protect Small Holders.
CONGRESS ASKED TO ACT
Interstate Commerce Commits
sion May Be Ordered to In
vestigate-Yoakum De-
tends Road.

Concerning the ST. Louis & San Fran
cisco receivership and comments 1t has
aroused in the French press, Maurice
Leon. lawyer, of No 60 Wall street.
who has represented the Paris Bourse.
the Credit Lyonnais. the Banaue de Paris
ct des Paws Bias and the French govern
ment in most OF the important financial
dealings between New York and Paris In
the last six or seven years, yesterday
made public his observations on those
transactions.
Il have tried for years 10 impress upon
those foremost in international financial
interests in this country that they owed
il mainly TO themselves. IL not TO their
country. 10 exercise close scrutiny anu
supervision over any transactions be
tween the two centres. because. whether
we wished Il or no. the fair name OF TINS
country is involved in each one Of those
transactions / wish that In THESE re-
spects l had been more successful!
So far as the st. Louis X san Fran
cisco situation is concerned, believe
that American banking interests ought
IN act as a unit 10 see TO II that bonds
which the French investor undouotedIy
believed were first mortgage bonds DO
not involve the purchasers In loss either
OF principal or OF interest The transac-
tion is very large: 100000 ~ this IN
debtedness IS held in 800 certificates by
possihlv as many "a 10000 holders. scat
tered ALI over France These holders, for
the most part. are small tradesmen and
other Of the class called petit renter -
people who cannot AFFORD 20 take loss
upon their investments.
Il believe that the interests when
sought and obtained the official listing
on the Bourse 81 this issue-and these IN
terests are on both sides OF the OCEAN
ought 10 cooperate with the support or
American banking interests generally In
e.dar 20 see that this situation is cleared
ND without loss TO those investors. be-
lieve that n this Is done # will have the
effect OF impressinG upon French IN
vcstors the fact that, even when DIM
culties occur. there IS ultimate safety In
American securities. and II. against my
homes and expectations. q loss ls finally
lmposed on the French investors. then
the exact opposite Will be the state OF
mind over there
II is estimated that the Frisco. as the
result OF the sale OF the general Hen .
per cent bonds. received approximately
Sl5rl1c" A. tho time % the issue i
was stated that tho proceeds would be
used for improvements Now the insinua-
ton is made IN some quarters that the
money was not spent Tor this purpose.
but FOR famlly-owned properties. To as
certain the facts the Interstate COM
mcrce Commission may be called upon 10
exercise It's jurisdiction. 4 resolution 10
that effect was introduced by Repre-
sentative Hinebaugh. OF Illinois. IN Con
gress yesterday
u. r. Yoakum. chairman ot the Frisco
directors. gave out yesterday the follow
Ing statement.
There II nothing 10 be gained by
newspaper controversies. There has al
ready been much said on this subject
through the press. not all being based
upon facts There has been no misrcp-
rcsentation nor concealment OF matters
nv this company The last 10000 o.!
bonds. which have been the subject % 50
much publicity. were sold with the fun
knowledge OF all facts in connection
with the companv's affairs"