The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-12
PRINCE PONlATOWSKI
HERE E0N FRISCO CASE
Financipr Says French Market
Is Shut to American
Securities.
BAD LUCK ~ RELATIONS
Points tO Dissatisfaction over
central Pacific and New
Haven Issues.

rruve Louis PoniatOWski ot Iatis'
chairman of the board Of directors ot
the Banuue PriVee de Lyon. VINO mas
played a prominent part in the intro
duction Of the s2s,OOO, 900 Frisco bonds
in France. arrived here Yesterday on
the olympic for week or ten dayS
stay in which he will Investigate the
affairs Of the Frisco.
Among other things the Prince said
that the Frisco incident will shut the
French market to American securities
for at least two years. He said that
it was the elimination of transactions
that have Influenced French investors
against American securities
The Prince IL no stranger to this
country. He lived for ten years here.
most ~ the time in California where
he married Helen Elizabeth Sperry. lie
was associated with r.. Il. Hartman
Prince Poniatowski is the head of the
Polish family OF his name.
My visit here is Of a purely private
character. he said yesterday al the
i.itz-Csrlton The interest of The
French bundholders will be ably repre-
sented by the Associate Nationsle des
'eNiS uS NU'ISS III re-
orgs nization proceedings will be decided
by that organization. which corresponds
in France to the Council of Foreign
Bondholders in England
SIN Has Faith IN Frisco.
II may have been overoptimis,ic in
value Of the Frisco. | am not. how
fta "a Nnt Ia, Ia 90,
my Judgment as far as the value back
Of the per cent. bonds is concerned
The criticism that has been levelled
| at Prince Poniatowski in this country
| on the score of bringing out $4,000, 900
OF the Frisco bonds less than a month
before the receivership at 90. when
they were selling here at 80. he refused
TO discuss. The criticism OF Maurice
Leon. attorney representing here the
French Government. the Boirse and
various French banks. he likewise re-
fused to talk Of beyond saying that the
man who had made. the criticism was
a lawyer naturally looking for busi-
| ness
There has been bad luck in the re-
fnanciers." he said. Their. is now a
|
issue paper or statement 1t will
never 20 week or month before IL
Will be disclaimed. The Central Pacific
| sold $50 900 900 bonds. closely following
| this by the announcement that owing
| 10 he tn!on Pacific dissolution the
bonds would either have to he with
drown or the deed ot trust amended
The New Haven - were very high
| 4 laHs Sptilrifieu hil' oil
the bankers have heard Is that Mellen
is going 10 tail in a month and that the
| Boston and Maine is going to pieces
Th. Westinghouse securities were Is
sued In Paris and receiver appointed
the same day. OF course the trans
action was cancelled. but French bank
pace W. do not know where We stand
Pct Faith ~ firms.
DO not be too harsh in saying that
French bankers have been eXaspersted
| in the Frisco matter. You must re-
member that We cannot follow affairs
in such large and intricate country
as yours We cannot be- on the spot
10 go over your railroads. We mus
absolutely put our confidence in arm,
in Nour country corresponding 10 our'
In station and reputation
The general effect OF the Frisco Incl.
den, Is simply one more argument
against American securities and prob
ably one OF brutal kind more bruta
than others. | think II will shut tn.
French market To American secur.tie.
certainly for the next two years
though Of course the marke, had beer
practically shut before the Frisco affail
by natural conditions abroad
Il believe that the future is there fo
the Frisco. The road is a good prop
ertv. Its earnings are good and strong
The . per cent bonds are good. The,
would have been an excellent medium o
finance had they not suffered In the wa,
that all other securities have suffered /,
these times. They were brought ont a
80 Had they STAYED there or advance,
to ~ or so the affairs OF the Frisco woul,
have been in excellen, shane do no
look for a rporganiza ton plan before al,
months. and IL will take a wear and
half TO nut il in operation"
Cause Of Frisco TrOabIes.
General conditions OF world "a ide ST
feet. the balkan wars srmaments nm
the fear OF a general war in Eurone a n
: In this country the endless tmrmo,i -
! legislatly. attack and destruction n