New-York tribune., 1914-03-30
o,ooosed French Tax on
Negotiable Securities a
Bear Factor.
ufxICAN SECURITIES
FLUCTUATE WIDELY
.,.u ORGANIZED Campaign Against
w." ,.or;rau investments Makes
n;souieting Headway in Paris.
rgy Cable to The TriOuns.l

March ge-The Bourse shoWea
Sigh, rally last week after fOr'nlSn'
,e-s,stent depression. The leading
...Dc,sl = authorities deplore the pro-
IA heavy taxation on negotiable Sc
,... saving that such step Will
n,.,, business from Paris to London
.u, snd Brussels. especially as even
10, government bonds. which have
.,...-,o been immune. will, according
-. new bill have 20 pay duty or
cant on the value Of the bond or Ger
Sat. II introduced on the Paris Bourse
group Of Swiss bankers is already
,,.osrlng to handle tho French banking
"a brokerage transactions that will be
49,, 70 Paris by the operation OF the
proposed tax ..,.,.. eu,,,
"a largely during the week. falling on
49, 49, r,mors Of Villas success in the field
,,d rising on the reports of Huerta's
victories
rr.nch rentes lost % centimes on tho
r.sk closing al Sc francs 81 X centimes
for the account.
In Favor Of French Stocks.
7, is becoming more and more evident
that a campaign is being waged in Paris
.rainst a large class Of American and
,tbsr foreign securities. The persistent
.sorts 10 direct the attention Of French
c,nitalists and small investors toward
home and colonial undertakings. which
during the last six years have been com
rars,ively neglected. greatly to the dis
advantage Of home industries and trade
have inevitably taken the form o. de
crying foreign securities.
Circulars have recently been issued
urging the French capitalist who buys
American shares to grasp the fact that
some American industrial enterprises are
not administered i'm the same way as the
business Of similar concerns of equal
Importance in France 1t is pointed out
that directors and administrators Of the
great French metallurgical works. for
Instance. are not allowed TO speculate in
the securities Of their company as. il is
alleged. has been the case with Ameri-
can business men in the United States
in several instances.
U. S. Copper Company lnstanced
The shares OF a we'll known Western
copper mining company are cited by the
French financial critics as striking ex-
ample The shareholders of this company
have apparently been put TO severe tests,
for il is said they have not Yet been paid
cent OF dividends, although the corpora
ton was founded in 1905. This remark
applies 10 the first shareholders, for these
securities were not introduced 10 the
French stock market until November,
'll2, and early buyers have lost already
more than 30 per cent of the purchase
price. Some French investors believe this
condition applicable 10 other American in
dustrial securities
Offers Of good dividends are stated to
be often illusory because "the directors
Of American mines play with the divi-
dends they offer to shareholders IKE
children with a tennis racket" 30 say
many French fnanciers. One financial
PAPER declares that big American com
pany which has not paid any dividend for
a long time now offers to pay 81, but in
the next balance sheet the investor will
read that circumstances have compelled
ine board Of directors 10 reduce or even
cancel any dividend for the current year
Several French financial publications
have for some time spread the informa-
Ton that the whole history OF American
flning enterprise is made up LARGELY of
1ysr,ised and inflated dividends. followed
ty Official communications that sharehold-
sTs Will have long 20 wait for payment OF
any further dividend or interest
sooms and Slumps Explained.
The public here is warned that these
booming enterprises and attractive divi-
osnds are thus explained, and that heavy
.amps are the natural consequence Of
pncss artihoially created The number OF
sven mining shares here il described as
considerable one stock IS specifically
mentioned. il being taken as good ex-
ample. This share was quoted few
months ago at more than sac Its present
'4Ve Is less than half that sum. Many
o'hefs are given which show even larger
1le'uatons. Investors are advised 70 be
'sry careful in buying American indus
pi@s for the reasons given. Holders OF
ss'nss IN France, IL is urged. should
'''Fe speculation in American mines 10
PROFESSIONALS and those spectators who
AZ vel Initiated in the ways OF Ameri-
an business transactions.
enueism In France OF the methods OF
ana The management OF many American
D'1strial undertakings and the mixing OF
'ec'iaton with industry on the other
@1s are not new. but have become OF late
frequent and general as 20 be worthy
!. oonSideIation by those interested In
s'%e'ng American securities on the
french market,