The New York herald., 1922-01-11

subsidiary corporation with a capital'
of $15,00O,000, the Government hold
Ing all the stock. These subsidiaries
would be the promotion companies
simply, the scheme working out this
way.
Russia, IL she subscribed to the
conditions of the Genoa conference,
! would place her orders with the Eng
lish parent company, which. after ar
ranging the terms, would then dis
tribute these orders among the sub
sidiary companies, which in turn
would promote the companies whereto
stock would be subscribed by private
industries to furnish the materials.
The participation of the United
dent upon the consent of Congress
to empower the Administration to use
Government funds for this purpose,
whereas the Paris scheme involved
private subscriptions only. but under
Government sanction.
Interest in the American attitude is
very keen here, but TIE consortium
apparently can easily get international
jealousies active through the ex-
change question.
The subsidiaries will name the d.
rectors of the English parent COM
pany and subscribe their proportion
of that company's capital IN pounds
sterling. Great Britain, France, Ger
many and the United States are to
have 90 per cent. share each in the
parent company, leaving 20 per cent.
for italy and the neutrals.
Italy objected to this arrangement
insisting on her right OF equality with
the big Powers. but was refused on the
ground that italy is not capital coun-
try. However, Italy Is member OF
the organizing committee
The American representatives here
appear skeptical on the question OF
American participation now In view oil
the fact that il would involve the Gov
ernment directly in business. Yet. as
the scheme proposes that the aid in the
rebuilding OF Russia's transportation
system shall be handled through the
consortium. some understanding must
be reached with America on the subject
The scheme will not receive the final
touches until the Genoa conference.
CANNES. Jan. 10 (AssociatedN Press)
Official announcement is made that
the Supreme Council tonight approved
the plan for the formation OF an inter-
national finance corporation, decided upon
by the economic committee. IL was
agreed 10, appoint Immediately a sub
committee. composed OF two French and
two British representatives. and one
Italian, Belgian and japanese represen-
tative, to organize the corporation.
The governments represented at the
Cannes council undertake TO furnish
| fl0. 900 for the organizing expenses and
will give the subcommittee, as well as
the corporation when IL Is established.
all the aid and assistance in their
! power.
| As outlined from Cannes Monday the
International finance corporation would
/ have a capital OF f2.0o0,000. Its seat
would be In London. with board OF
directors nominated by affiliated COM
panles in each interested country. These
I countries. including the United States,
would organize corporations. for promo
/ tion only. with a combined capital
equivalent 20 f20. 100000.
To serve as mediums for credit trans
actions and facilitating the activities OF
private enterprises In all courtries
where the business field now IS OBJ
/ structed by lack OF credits and dis
organized finances would be the object
| ~