New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-12
EUROPE D|STRUSTS OUR
SECURITIES, SAYS PRINCE
Bankers Here Missed Chance to
Profit by Financial Conditions
Abroad, He Declares.
TO STUDY FRISCO AFFAIR
Honorary President of Banque
Privee Confident All Will BE
Well if Conditions in U. S.
Remain Normal.

Prince Pon'atowski. honorary president
Of the BanQue Privee. of Paris. who mas
been accredited with having had much to
do with the sale 10 French investors or
bonds Of the ST. Louis & San Francisco
Railroad Company. arrived here YESTERDAY
on the Olympic He denied he was Of
hcially representing any Of the French
bondholders in the reorganization OF the
company, declaring he had come here pri-
vately 20 form a clearer opinion on the
roads affairs.
While advocating harmony between all
the interests Of the Frisco, the prince
deprecated the IN effect the receivership
has created in France. He characterized
the action taken as being one more argu-
ment against the sale Of American securi-
ties abroad. probably more brutal than the
others.
The prince took great pains TO empha-
size the present untoward financial con-
ditions prevailing throughout all Europe.
with European conditions such as they
are" he said. at is only natural that for
eign investors should look here for oppor-
tunities TO place their money You had no
big navy. no big army and YOU would
have had a splendid chance TO get foreign
capital.
But there has been bad luck in the re-
lations between American and French
hnanciers. There is sentiment abroad
that when you issue securities IT may be
week or IL may be a year before the
issue is disclaimed
Not only is the Frisco matter an
example. but there is also the case Of
the Central Pacific bonds. Shortly after
they were sold in France the Union Pa
cifc dissolution forced a change in deed
OF trust Your bankers notified US that
New Haven IS were n high class secur-
ity but since then an the French bank
ers have heard Is 'Melen IS going 10 Jail;
he is running the Boston & Maine, etc,
80 we do not know where We stand
Another factor that contributed 70 in
crease the distrust of American securi-
ties IN France was the announcement Of
the receivership Of the Westinghouse
company the same day its securities were
to boz listed on the Paris Bourse.'
I'm response 20 charges that the French
bankers should have investigated the
Frisco property before the recent sale
OF s. 10000 Of It's bonds. Prince Poniatow-
ski said this was only a small part Of the
business done By them and that this
country was too large to follow its az
fairs closely lie said the French bank
ers in such instances as the Frisco re-
ownership must put their confidence in
the American bankers.
r may have been over-optimistic in the
past in appreciating the intrinsic value
OF the Frisco ne added II am not,
however. ready as yet 20 greatly modify
my Judgment as far as the value back
of the bonds I- concerned
III times boz this country remain al all
normal and IL all the parties interested
Join hands in the task OF readJusting on
a fair basis the relationship OF the various
constituting the Frisco system,
feel confident that no loss Will be sus-
talncd The experience and past record
OF the various banking firm that have
already come 10 the front FOR this purpose
are the best guarantee that AL VIII De
done 10 bring about such a result
Prince PoniatowsN stated that his eN-
perlenCe with the Frisco securities in the
past had been satisfactory. In l%S ms
bank purchased approximately lo,W1Up
francs, which were PAID OF IN l%e he a.
serted the road had a good future, but II
had suffered. like all corporations, from
the condition OF the money market
Concerning general conditions abroad
the prince was decidedly pessimisuc. lie
does not expect a favorable change IN the
situation for at least year There IS
much large financing 10 be done he
said. and we have the same timid feel
ing on the part OF investors that you
have here IL Will take months and
months for them 20 return 20 peaceful
frame OF mind. This Will not occur when
the Balkan trouble is ended. for then
business will only begin.
Nearly a billion dollars worth Of Eu-
ropean state financing must be done, be-
sides loans 10 Germany and France, who
will want 500 10000 more. You viii have
10 do a large amount OF financing here. IL
will be utterly impossible 10 place long
time bonds here or IN Europe; We must
both resort TO short-term notes.