Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-10-26
BY WILLIAM c. DREHER.
Special Gable to The American.

BERLIN, Oct. 22-.The famous
Princes Trust is in difficulties. 1t
has been for several years.
Recently It saw that the time had
come for drastic remedies. So It
called in the aid OF the Deutsche
Bank, and the latter is now trying
to unsnarl the tangled financial web
In which the two princes had involved
themselves,
just now a new thing in German
finance is happening. Prince Max
Egon zu Furstenberg, the intimate
friend of the Emperor Ot is even as
serted the latter wanted to make the
Prince Prime Minister) has recently
obtained authorization to hypothecate
his great entaiied &c, 900 acres estates
In Baden, as security for a $4,000 900
loan. At the same time, Prince Chris
tan Krafrt zu Hohenlohe- Oehringen,
the other member OF the princes
Trust" has raised a loan of $4,000
900 on his Hungarian estates.
Needed More Funds.
They needed, apparently even more
than these sums, TO carry through the
liquidation p-occr.
tainly the most complicated story in
recent German finance-this rise of
the princes Trust" and It's mis-.
fortunes.
Prince Hohenlohe and Prince Max
Egon Joined when the noble capital
lists discovered they had common
taste for finance.
Hitherto the German nobility had
stood apart from all contact with
business--for medieval family tradi-
t3on is proudly adhered to in this
money making twentieth century.
The two princes had the money,
and they thought themselves the men
TO break that tradition. They would
take a leaf out OF the book OF the
British aristocracy.
So they founded the Handles
Vereinigung," whose mission, accord
ing to its charter was ito amalgamate
the industrial and commercial enter
prises Of large private fortunes into
Joint stock companies and manage
them
The concern was known in stock
exchange parlance as jhe Princes
Trust"
Annexes a Bank.
II needed a banking house Of its
own and attached the Palestine Bank,
FOUNDED some time before to do bust
ness within Palestine-largely on re-
sigious sentiment II soon became a
well-known house for the flotation of
stocks and bonds. particularly those
IF the Princes Trust" &.
The Handles -Nereinigung began at
pnce to unfold great activity as the
Germans httingly express Il.
Il went into potash mines, steam
Fhlp companies. two hotel companies,
Two big department stores. wholesale
wine companies printing house, and
took the leading building company of
Berlin and amalsamated Il with the
Berlin Real Estate and Building Com
osny
Department Stores Lose.
In this transaction. and especially
IN the department store venture the
i>eutsche Bank and another bank as
rociated with II in the trsnsa ction lost
Utmost $4,000 600 That came out
re-''' a. 1912.
$50 growing visible 70 the pub
-, mat the trust was getting short
Of ready cash. For example. Hohen-
lobe some years ago had converted
his great zinc works into a Joint stock
company, which was to pay him
s1l5.000 I year for life he remaining
also the largest stakeholder Now.
within year or two, he has had tn
tempanv capitalize his annuity and
buy itself free with a. cash payment.
July Brings Crisis.
In Jdiv came the critical turn in
the affairs of the trust. It was an
nounced that II had entered into re-
tat'ons with the Deutsche Bank an I
had discharged the general manager
y me Haudels-Ne reingung
The companies involved are not re
N0lraI make detailed annual re-