Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-19
j. S. UTILITY FIRM
PLANS EXPANSION
Electric Bond & Share Ex-
tends Its Operations
to Rumania.
BY JOHN F. SINCLAIR.

BY JOhN r. SANCLhAHs
Special Dispatch to The Star.
NEW YORK, March 49, -- From
Bucharest comes the announcement
that Sidney 2. Mitchell and his as
sociates of the Electric Bond q Share
Co of New York, through their sub
sldiary. American Foreign Power, have
secured a monopoly of the electric
power of Rumania. The concession is
in return for an immediate loan OF
$4,000, 600, plus unannounced addl-
tional credits as the American firm es-
tablishes its operations in various parts
o. Rumanla.
Already this American public utility
company, one of the largest in exist
ence, has extensive foreign holdings,
including electric light, power and
transportation services, in such tar-
flung countries as Argentina, CUBA,
Mexico, Brazil, Central America, China,
Japan and India.
1t is understood that this new fnanc-
ing in Rumania will ultimately Involve
an expenditure by the American COM
pany of anywhere from S100,0o0,OOO to
5000 900 900.
This is the second American monopo-
" for Rumania The first was estab-
lished when the International Tele-
phone g. Telegraph Co. assumed con-
troll of all The telephones in that coun-
try.
Giant Utility Company.
George Henry Howard At, a graduate
of both Dartmouth and Harvard, Is
the man putting together the giant
United Corporation by combination
of the Morgan, the Bonbright and the
Carlisle interests.
1t was only two years ago that j.
p Morgan g. Co. decided TO enter
the public utility field and joined
n0,,lriul1f our the
DreXel groups, in the formation OF thls
corporation.
Mr.. Howard was secured to head the
organization because of his close con-
nection with the Electric Bond & Share
group. This group, by the way. has
iust reported net earnings for 1880 OF
SAC. 355 000-equal to $2.43 share on
its 14.384.736 shares of common STOCK
outstanding on December 81 last, as
compared with S32,51l 900, or $1.97
earned on its 1885,, 900 shares in 1929
Mr. Howard is largely credited with
having put together this group.
The future CT the United Corporation
Is interesting Its position is changing
constantly but it is known to have
more than 20 per cent interest IN tne
Niagara Hudson Power Corporation.
Perhaps. within ano. l1er IL months. 1t
will have a controlling interest in Nj
agara- Hudson.
But this is not ALL Already the
IJnited's holdings in the United Gas
improvement Co. amount to 26 per cent
and in the Public Service Corporation
of New Jersey to ID per cent. 1t mas
smaller interest in Commonwealth q
Southern little over per cent.
Things may be quiet on the surface,
but in the public utility field In the
East where billions are involved. any
thing but quiet reigns; new allgnments
are being made below and behind the
surface constantly.
In addition to being president OF tne
United Corporation, Mr.. Howard Is
Chairman of the Executive Committee
of the Niagara Hudson Power Corpora
ton, director of the U. G. l. and OF
the Chase National Bank.
New Credit to Italy.
Now that France has extended Italy
such credit as she needs TO meet her big
1881 obligations, the story behind the
n-ws may be told.
when italy. a few months back,
found herself unable to raise money
either in London or in New York, she
asked Germany to send her the full
amount of the reparation bonds which
italy had coming to her under the
Young plan. The matter was taken up
with the Bank for International Settle
ments, for the Young plan PROVIDES
that any German reparations creditor
can demand and secure from Germany
such reparation bonds as are due to her
under such an arrangement WITHOUT
consulting with any other nation.
France was anxious. She knew what
the demand meant to her. She saw
that if Italy received all that was COM
ing to her in reparation bonds (aoout
$50 900 O00) and attempted to sell them
on the world market at any price she
could get, that it would not only de-
moralize the smooth workings OF the
Young plan. but that 1t would cause
havoc in the money centers OF the
world.
cut Italy, hard-pressed. insisted on
hcr rights! Hurried conferences were
held to get her to Withdraw her re-
quest. but she refused. She needed the
money and mobilizing her reparation
credits was the only way she saw open
to meet her 1881 debts.
Germany, in the meantime. actually
started the printing of the bonds for
Italy. 1t locked dark. France saw
there vas only che thing to do. and
that was to arrange Immediately for
such credit as Italy needed. And that's
exactly what France did. Italy has
arranged satisfactory credits in France
to meet her immediate needs. The
reparation bonds were cancelled, ano
ali is well-for the present.
This situation has caused the authors
of the Young plan some anxious
moments in recent months 1t looks
as Though somebody slipped cog In
allowing such a loose provision to be
incorporated in the Young plan
Lloyd George.
Premier Macdonald and ex-Premiel
Lloyd George. may soon Join hands II
the same British cabinet For 25 year:
David Lloyd George has been polittca
storm center in England He was {
fighting chancellor of the eXchequer a
As, prime minister Of England during
the dark days of the war, and Liberia
party leader since then
The problem of Britain's iobless /
a stupendous one. j. H. Thomas, rail
road labor leader tried TO solve it whel
he held the post of lord privy sea
and failed Vernon Hartshorn sue
Ceeded Mr. Thomas but died last wee
from overWork. without making din
in this vast problem.
Lloyd George thinks that the British
Government should borrow large sum
Of money, and undertake vast publ
construction, and so greatly increas
the number of employed.
Whether Macdonald and Lloy
George can work together in one cabi
net is prcb,ematical. But one thin
seems fairly certain. Lloyd George ar
Philip Snowden probably cannot. Fo
Philip SnoWden the present chancclC