The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-19
BANKERS ORGANIZE
TO AID INVESTORS
Form Committee to Protect
= Holders Of Foreign
Securities.
LAMONT is CHAIRMAN
Will Act IL Government of
Russia Defaults on Out
80 . .. H. U-~.>S
LAMONT is CHAIRMAN

The holdings OF foreign securities
have become so large in the United
States since the beginning Of the war
that the Investment Bankers Associa-
ton has formed a committee to advance
and protect the interests OF those Amer
lean investors owning foreign securi-
ties.
With this end In view the association
announces the personnel OF this commit
tee. which Is composed OF some Of the
States. The members Of the committee,
OF which Thomas w. Lamont OF J. p.
Morgan & Co. Is chairman. follow: Mo-
reau Delano. Brown Bros. & Co., New
York; Alien b. Forbes, Harris. Forbes
Co, New York; A. w. Krech Equita-
bic Trust Company. New York; Charles
+. Mitchell. National City Company,
New York; NJ. l.. Schir, Kuhn, Loeb &
Co.. New York; A. H. Wiggin. Chase
Securities Corporation, New York; II. l..
Stuart, Halssy. Stuart & Co.. Chicago;
F. L. Higginson, Jr.. Lee Higginson &
Co.. Boston: II. c. McEldowney, Union
Trust Company. Pittsburs; John Evans.
International Trust Company, Denver.
and Lewis II. Parsons, Graham. Parsons
& Co.. Philadelphia.
To Aid I'm Russia.
It is expected that this committee will
get into contact with foreign Govern
ments whenever an occasion arises
necessitating the advancement or pro-
lection Of the American owners OF for
eign securities. The services Of such a
committee, II Is believed. would be OF
particular value to investors should the
present Government in Russia default on
its obligations placed in the United
States.
A banker declared yesterday that It
Is obviously impra cticable for direct ac-
tiop by security holders generally and
as there is no organization other than
the Investment Bankers Association
which can assume such a responsibility
the time has arrived for the establish
ment OF such committee.
No estimate could be obtained yester-
day as to the total amount OF foreign
securities held in the United States, but
one authority declared that upward OF
$4,000, 100000 of foreign government OBJ
legations have been placed with Amer
leans since the beginning OF the war.
Why Committee Was Formed.
Warren S. Hayden of Cleveland, pres
ident OF the Investment Bankers Asso-
citation. which Ia composed OF invest
ment bankers throughout America, in
explaining the reasons actuating forma-
tten OF the committee on foreign securi-
ties, says:
"In recent years the total holding In
the United States OF securities issued in
other countries has vastly increased.
Moreover. these foreign securities are
widely distributed and are really held
by the American public rather than by
the clients of few concerns or a small
number OF investing groups. II is prob
able that some time the interests of this
public in some OF these issues would be
advanced or protected by the wise &C
tivity Of n broadly representative COM
mittee or council and 1t Ia believed that
such a committee should be constituted
In advance of any urgent occasion.
Such BODY could have contact with
the American and foreign Governments
with generally similar bodies in other
countries, and In proper circumstances
with foreign agencies directly concerned
with particular issues OF securities. II
there Is occasion for readjustment or
for enforcement o. obligation such a
body, largely by It's mere existence.
could prevent exploitation OF American
Investors by those not in position to
rerve them most effectively. Such
body might offer to serve directly the
holders of given issue. or for such
service to appoint committA of its
own members or OF ron-members or It
might simply give countenance to some
committee which 1t had no part in
choosing
There should be great latitude in
order that the essential purpose be &C.
compiished,"