Evening star., 1940-07-12
TotaIitarian Shift
In Rumania Affects
Large U. 5. Stake
$4,000, 900 Investments
And $4,000, 900 Looms
Cause Grove Concern
BY the Associated Press.

By the Associated Press.
BUCHAREST, July ia stake
of $163,000,000, which Americans
have In Rumania, is bound to be
affected sharply by the sudden
transformation of King Carols mon
archy into totalitarian state.
Since Rumania renounced her
British French connections, set up
a government on the Nazi model and
threw in her lot with Germany and
Italy. the American colony here has
expressed deep concern over what
will happen to $50, ,000, 900 in United
States investments and 1927 000, 900
in United States loans.
Most of this second figure-$122,-
900 ,000-is a World War loan, prin-
cipal and interest.
Although Bucharest and Boston
are 4,500 miles apart, many ties link
Rumania and the United States.
$5,000,000 U. S. Trade Killed.
Most Rumanian automobiles come
from America; each time a Ru-
manian makes telephone call he
rings up a cash dividend for an
American stockholder; one of the
largest oil companies is American
owned; most of Rumania's movies
are turned out in Hollywood, and
shops, until recently, were full of
American magazines, cosmetics and
gadgets.
War in the Mediterranean already
has ended an exchange of goods in
which $5,000,000 in American manu-
factures were sold annually to Ru-
mania, which, in turn, shipped back
about $2,000,000 worth of raw ma
terial. Commercial men see little
possibility of this trade returning,
for, under Nazi domination, Ru-
mania would get her automobiles,
face powder and can openers from
Adolf Hitler's Third Reich.
The possibility that Rumania's for
e1gn trade in the future will be done
on a clearing basis under Berlins
domination Immediately raises the
question of how American owners of
stock in Rumania corporations will
receive their dividends. In the past
it was possible to pay these divi-
dends because Of Rumania's favor
able trade balance with free ex-
change countries such as Britain and
France.
Under the continental economic
system, which diplomats expert will
follow the war. all trade would be
done by clearing and all dividends
would be paid only in marks or lei
the Rumanian monetary unit,
which could not be exported to the
United States either as goods or in
gold.
Further Complications.
There are further complications in
the recent decree prohibiting the
sale of stock in Rumanian oil cor
porations without government per-
mission.
However, American oilmen are
hopeful leniency will be shown
United States interests in the ap-
plication of this law.
United States oil investments here
total $1bu0d.D0 Ruma niaS debts "a
the United States include $122 ,OO0,-
600 in interest and principal on her
World War loan, $3,500,000 unpaid
interest and principal on her 1929
loan and 81 SOC, 900 in q 1922 loan.
The entire Rumanian telephone
system is American owned and
managed, with more than $4,000, 600
OF United States savings invested
there and another 100000 in a
subsidiary manufacturing company.
Other United States interests, sew
eral OF which made profits suffici-
emily large to redeem their invest
ments, are:
The Ford Motor Co. of Rumania.
with 100000 in capital, owned by a
Luxembourg holding company.
which in turn is owned by Ford of
Great Britain, which is said to be
80 per cent Americana financed,
International Harvester. with
about $150,000 in American capital
tied up in equipment.
Miscellaneous United States en-
glneering firms, with combined in
vestments Of $1,000,000, largely in
oil well machinery.