New-York tribune., 1919-04-21
Bio Bankers Form
Corporation for
Foreign Business
Will Finance Public and Pri-
vate Enterprises Abroad
and Sell Securities to
American Inve estOrs

Leading American banking interests
have joined hands in the organization
of the Foreign Bond and Share Corpo-
ration, with q subscribed capital and
surplus of s3,OOO,OOO to finance public
and private enterprises in foreign
countries The new concern, which
shortly will be ready to do business,
Will be patterned in many respects af-
ter the investment trust corporations
in vogue in Europe for many years.
New York banking interests behind
the new company arc the Guaranty
Trust Company, Brown Brothers e. Co.,
}. & W. Seligman e. Co., the Chase Sc
curites Corporation, the Central Union
Trust Company, the Columbia Trust
Company, and Hayden, Stone e. Co.
Out of town banking interests which
have a share in the enterprise are:
ton, the Central Trust Company of
Chicago, the Ilbcrnia Bank and Trust
Company of New Orleans. First Trust
and Savings Company of Cleveland,
the Anglo e. London Paris National
Bank of San Francisco, and the Mcr-
camille Trust Company, the Mississippi
Valley Trust Company and the Ma
tlonal Bank of Commerce of ST. Louis.
Purpose of Corporation
A statement officially announcing the
launching Of pioneer company for
financing foreign enterprises with
American funds, says the purpose of
tho new corporation, which is incorpo-
rated under the laws of Delaware. is
to finance public and private enter
priscs in Central and South America
the Far East Europe, and other parts
Of tho world. The corporation will
also sell to American investors either
It's own dcbcnturcs, which Will be GOV
cred by the deposit of securities Of
these foreign companies, or the foreign
securities themselves. Tho sponsors
state that they hope to reach ali classes
OF investors in the United States.
The new company has an authorized
capital stock Of 900 shares of com
mon stock of 500 par value and 1900
shares with no par value, known as
participating certificates"
The directors are John Henry Ham
mond and Thatcher NJ. Brown, Brown
Brothcrs e. Co.; Frederick Strauss and
william =. Philips, j. & W. Scjgmnn
q Co.; Albert Breton and Harold Stan
Icy, Guaranty Trust Company, of New
York; +, V. r. Thaycr and r. |. Barr,
Chase Securities Corporations James
n. Wallace, Central Union Trust Com
pany, Of New York; Howard Baync
Columbia Trust Company: Charles
Hayden, Hayden, Stone & Co.; John
ShcrWin, First Trust and Savings Com
pany; r. S. lIccht, Hbernia Bank and
Trust Company; Herbert Flcishhacker,
Anglo and London Paris National Bank
AdoIio Stahl, of New York and Guate-
mala; j. Hugh Powers, Mercantile
u -; 1
mississippi Valley Trust Company; j.
Il. Lonsdale, National Bank of Com
merce; Joseph 4. Otis, Central Trust
company of Illinois; Ernest Gregory,
Flrst National Corporation, of Boston,
and Maurice Hely Hutchinson.
Problems of Exchange
"The European countries now owe
the l'nlted States such enormous
sums says the statement, chat the
mere problem Of exchange neccssitates
the taking of foreign securities by the
American public in payment for our
exports of merchandise to Europe, if
such exports are to continue in any
thing like their present volume.
In the past London has been the
great international market for the Sc
curltles Of every government of the
earth and of the industries that were
among the principal sources of national
wealth. British investors always have
been large buyers of such securities.
The new-found financial position of the
United States should result in a similar
appreciation on the part of American
investors of this factor, which is vital
to the future of our foreign com
merce.
"Rates of investment return in Latin
American, Asiatc and other countries
needing development are higher than
in the United States. There is no rca-
son why, under careful supervision, the
American investor should not be given
the benefit of such attractive rates of
investment return, and at the same
time have the protection of good Sc
curitV"