. 14
( 20)


Teresa Tortella, A Guide to Sources of Information on Foreign Investment in
Spain, 1780“1914 (Amsterdam: International Institute of Social History, 2000)
(http://www.ica.org/en/node/30421, accessed Sept. 26, 2007); see also Peter
Hertner, and H. V. Nelles, ˜˜Contrasting Styles of Foreign Investment: A
Comparison of the Entrepreneurship, Technology, and Finance of German and
Canadian Enterprises in Barcelona Electri¬cation,™™ Revue Economique, 58:1
(Jan. 2007), 191“214, and Anna M. Aubanell-Jubany, ˜˜La Industria Electrica y
la Electri¬cacion de la Industria en Madrid entre 1890 y 1935,™™ Ph.D. thesis,
European University Institute, Florence, 2001.
On this, we have found particularly useful Armstrong and Nelles, Southern
Exposure, 6, and passim. So, too, the general banking literature has been
Patricia Roy, ˜˜The British Columbia Electric Railway Company, 1897“1928: A
British Company in British Columbia,™™ Ph.D. thesis, University of British
Columbia, 1970, and her ˜˜Direct Management from Abroad: The Formative
Years of the British Columbia Electric Railway,™™ Business History Review, 47
(Spring 1973), 239“59. See also Armstrong and Nelles, Southern Exposure,
151; Horne-Payne was also a director of Sperling & Co. (ibid., 151). On BCER
and British direction, especially, the role of Horne-Payne, R. H. Sperling, and
Sperling & Co., see Christopher Armstrong and H. V. Nelles, Monopoly™s
Moment: The Organization and Regulation of Canadian Utilities, 1830“1930
(Philadelphia: Temple University Press, 1986), 97“100, 132“34, 207“8,
348“49, 369.
Nelles, Southern Exposure, 95. Wernher, Beit & Co. was founded by Alfred
Beit and Julius Wernher. Both men were German-born and had made their
money in South African diamonds, before founding the London house in the
1890s. They became involved in South African gold mining. Then they invested
in electric traction. Beit died in 1906, Wernher in 1912. After Beit™s death, the
¬rm Wernher, Beit & Co. came to an end. Kynaston, City of London, II, 82“83,
123, 134. Dates of the men™s death are from Emden, Money Powers, 420, 428.
See also Maryna Fraser, ˜˜International Archives in South Africa,™™ Business and
Economic History, 2nd ser., 16 (1987), 168, on Wernher, Beit™s tramway
interests in Chile, Mexico, Portugal, and South Africa.
See text on British Empire Trust. On Trustees™ Executors™ and Securities
Insurance Corporation, see Wilkins, History . . . to 1914, 492“93; it participat-
ed in the Cataract Construction Company, which was involved in Niagara Falls
power developments.
Notes to Chapter 3, Pages 87“88

59. For Foster & Braithwaite™s important role in electri¬cation at home and
abroad, see W. J. Reader, A House in the City: A Study of the City and of the
Stock Exchange Based on the Records of Foster & Braithwaite 1825“1975
(London: B. T. Batsford, 1979), 100“5, and Kynaston, City of London, II, 463.
On Electric and General Investment, see also Raphael Schapiro, ˜˜Public
Ownership and Private Investment: The Case of British Electric Traction,™™ in
his ˜˜Why Public Ownership? Urban Utilities in London, 1870“1914™™(D.Phil.
thesis, Nuf¬eld College, Oxford University, June 2003), 209, 224.
60. See Chapter 2 on free standing companies. The best work on British overseas
banking is Geoffrey Jones, British Multinational Banking 1830“1990 (Oxford:
Oxford University Press, 1993). Also useful are the earlier, A. S. J. Baster, The
International Banks (London: P. S. King & Son, 1935), and A. S. J. Baster, The
Imperial Banks (London: P. S. King & Son, 1929).
61. Gall, et al., Deutsche Bank, 58.
62. Baster, International Banks, 153. Baster notes the late-nineteenth-century,
early-twentieth-century competition from German banks and from others on
the continent. Ibid., 154“56.
63. Armstrong and Nelles, Southern Exposure, 48.
64. Ibid., ix. This book and H. V. Nelles himself (and his background papers)
have been our principal source on the Canadian role in utilities in Latin
America. On Spain, see Hertner and Nelles, ˜˜Contrasting Styles of Foreign
65. Armstrong and Nelles, Southern Exposure, passim, and Gregory P. Marchildon,
˜˜The Montreal Engineering Company and International Power: Overcoming
the Limitations of the Free-Standing Utility,™™ in Wilkins and Schroter, eds.,
Free-Standing Company, 391“418.
66. Gregory P. Marchildon, Pro¬ts and Politics. Beaverbrook and the Gilded Age
of Canadian Finance (Toronto: University of Toronto Press, 1996). The date of
formation of Dominion Securities is from the Royal Bank of Canada website
(http://www.rbc.com/history/quicktofrontier/ds.html, accessed Sept. 26, 2007).
Dominion Securities Corporation was set up by the Central Canada Loan &
Savings Company, which had opened its doors in 1884. Armstrong and Nelles,
Southern Exposure, passim. By 1902, Dominion Securities Corporation had a
London of¬ce. The representative was Canadian-born Edward Peacock. See
notes to Chapter 4, herein.
67. Armstrong and Nelles, Southern Exposure, 10 (on the law ¬rms), 148“68 (on
James Dunn, who made London his permanent home in 1907). See also
Graham Taylor and Peter A. Baskerville, A Concise History of Business in
Canada (Toronto: Oxford University Press, 1994), 257 (on Max Aitken, who
settled in Great Britain in 1910).
68. Henry M. Whitney, the U.S. entrepreneur who took the initiative in
transforming Boston streetcars from horse to electric power, had gone to
Nova Scotia in the mid-1890s to obtain coal for his New England power plants.
˜˜As an afterthought,™™ Whitney and his chief engineer Fred Stark Pearson
became involved in a small Halifax streetcar promotion, turning it into a
pro¬table business, which impressed the Canadians, not only in Halifax, but in
Montreal and Toronto as well. Pearson, who had been the principal engineer
Notes to Chapter 3, Pages 89“90 345

on the Metropolitan Street Railway in New York as well as the West End Street
Railway in Boston, would bring the receptive Canadians into a wide range of
electric traction, as well as light and power promotions. Armstrong and Nelles,
Monopoly™s Moment, 90. One writer argued that Pearson knew how ˜˜to enlist
the support of the venture capitalists of the time.™™ Gil Cooke, ˜˜An Extreme
Power Engineer: The Accomplishments of Fred Stark Pearson, Part One,™™ IEEE
Power and Energy Magazine, 1 (Nov/Dec. 2003), 60“65. For the life and times
of Pearson, see McDowall, Light, passim, and Armstrong and Nelles, Southern
Exposure, passim.
Marchildon, ˜˜The Montreal Engineering Company,™™ 393“94.
Wilkins, History . . . to 1914, 554.
Wilkins, Emergence of Multinational Enterprise (on the American companies
abroad); Catherine Vuillermot, Pierre-Marie Durand et l™Energie Industrielle
(Paris: CNRS, 2001), 45, 64 (on Madagascar).
Both Victoria Falls & Transvaal Power Co. and Chile Exploration Company
are listed on Table 1.1 herein as owning among the highest-voltage
transmission systems outside the United States. Victoria Falls & Transvaal
Power Co.™s inclusion re¬‚ected the gold-mining requirements in the Transvaal,
while Chile Exploration had heavy use of electrolytic processes in treating the
copper ores. Interview by Mira Wilkins with P. M. Markert, General Electric,
Johannesburg, South Africa, Aug. 3, 1965 (on GE history); Wilfried
Feldenkirchen, Siemens: From Workshop to Global Player (Munich: Piper,
2000), 401 (on Siemens). Celine Boileau, ˜˜La Production Electrique Destinee a
´ ´`
las Miniere en Afrique du Sud (1880“1922)™™ in Barjot, et al., eds.,
´ lectri¬cation Outre-mer, 474, writes that the ¬rst concession for
electri¬cation in South Africa was given to Siemens & Halske in 1894. United
States Federal Trade Commission, Report on Co-operation in American Export
Trade, 2 vol. (Washington, DC: USGPO, 1916), II, 544 (henceforth cited as
FTC Report). Victoria Falls Power Co. Ltd. (VFP) was formed in 1906; it was
renamed Victoria Falls & Transvaal Power Co. Ltd. (VFTP) in 1909. VFP
obtained a monopoly for the generation and distribution of power for the
mineral industry. AEG was involved, as were the Dresdner Bank and the
Deutsche Bank. VFP and then VFTP appear to have acquired the power plant
built by Siemens & Halske in Brakpan, South Africa. Boileau, ˜˜La Production
Electrique,™™ 459, 462, 469, 474. For this period, the Guggenheims made a huge
(for a single ¬rm) investment, some $12 million in the Chile Exploration
Company. Wilkins, Emergence of Multinational Enterprise, 181“82.
˜˜Windows to Malaysia™™ website (http://www.windowstomalaysia.com.my/
nation/14_3_1.htm, accessed Sept. 27, 2005). It was built on Sungai Sempam
near Raub, Pahang, Malaysia.
D. K. Fieldhouse, Economics and Empire 1830“1914 (Ithaca: Cornell
University Press, 1973), 3.
Hertner, ˜˜Financial Strategies,™™ 149; Donald Wallace, Market Control in the
Aluminum Industry (Cambridge, MA: Harvard University Press, 1937), 6; Karl
Erich Born, Internationale Kartellierung einer Neuen Industrie: Die Aluminum-
Association 1901“1915, in Zeitschrift fur Unternehmensgeschichte, Beiheft 84
(Stuttgart: Franz Steiner Verlag, 1994), 14“31.
Notes to Chapter 3, Pages 90“91

76. Wallace, Market Control, 33“34, 40. The initial aluminum production there
was in the same year, 1898.
77. Aluminum Company of America Brief, U.S. v. Aluminum Company of
America, Eq. # 85“73 (Southern District of New York, 1940), 103 (on the
1899 contract between Pittsburgh Reduction and Shawinigan Water and Power
Co., under which Alcoa™s predecessor obtained power at Shawinigan Falls;
these rights were assigned to the latter™s Canadian af¬liate, Northern
Aluminum Co. Ltd. in 1903); Wilkins, Emergence of Multinational Enterprise,
138“39; William J. Hausman and John L. Neufeld, ˜˜U.S. Foreign Direct
Investment in Electrical Utilities in the 1920s,™™ in Wilkins and Schroter, eds.,
Free-Standing Company, 369, 378“79; Thomas Heinrich, ˜˜Product Diversi¬-
cation in the U.S. Pulp and Paper Industry: The Case of International Paper,
1898“1941,™™ Business History Review, 75 (Autumn 2001), 483; see also
Claude Bellevance, Shawinigan Water and Power, 1898“1963 (Montreal:
Boreal, 1994), 225“33 (on Aldred™s role in the ¬nancing of SWP); Herbert
Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-American
Industry (1936; reprinted New York: Russell & Russell, 1970), 44“46; and
Armstrong and Nelles, Monopoly™s Moment, 104“6.
78. Wallace, Market Control, 38. L. F. Haber, The Chemical Industry 1900“1930
(Oxford: Oxford University Press, 1971), 87, 167“69. German, French, and
Swedish interests were involved in Norsk Hydro. The German interests were
linked with the chemical industry. On Badische Anilin- und Soda-Fabrik
AG™s participation, see Jeffrey Allan Johnson, ˜˜The Power of Synthesis
(1900“1925),™™ in Werner Abelshauser, et al., German Industry and Global
Enterprise: BASF: The History of a Company (Cambridge: Cambridge
University Press, 2004), 144“45. The French interests were those of the
Banque de Paris et des Pays-Bas (Paribas). On the large French loans to Norsk
Hydro in 1910 and 1911 (with Paribas and Credit Lyonnais as underwriters),
see Samir Saul, ˜˜Banking Alliances and International Issues on the Paris Capital
Market, 1890“1914,™™ in Youssef Cassis and Eric Bussiere, eds., London and
Paris as International Financial Centres in the Twentieth Century (Oxford:
Oxford University Press, 2005), 134. On the Stockholms Enskilda Bank
involvement in Norsk Hydro, see Ulf Olsson, Furthering a Fortune (Stockholm:
Ekerlids Forlag, 2001), 11. Badische effectively pulled out from its controlling
interest in Norsk Hydro in 1911, but there were some remaining German
minority interests.
79. This came up in the discussion at the Buenos Aires meetings, July 2003.
80. The story of how Duke was brought into the Saguenay River development is
told for the ¬rst time by David Massell, Amassing Power: J. B. Duke and the
Saguenay River, 1897“1927 (Montreal: McGill-Queen™s University Press,
2000), 48“61. The quoted passages are on pp. 52 and 60. For more on Duke™s
background and his experiences in 1912“1914 with the men who brought him
into the Saguenay River project, see ibid., 62“98. After the dissolution of
American Tobacco in 1911, Duke had become chairman of British American
Tobacco Company (BAT), London, one of the major companies spun off from
American Tobacco. Although Duke held the title of chairman of BAT until
1923 and initially, at least, played an active role, BAT appears to have been
Notes to Chapter 3, Pages 92“93 347

managed in the main by the highly capable Hugo Cunliffe-Owen. Over the
years, Duke™s participation in BAT management seems to have captured less
and less of his attention. Mira Wilkins, The History of Foreign Investment in
the United States, 1914“1945 (Cambridge, MA: Harvard University Press,
2004), 141“42.
In 1886, Westinghouse Electric Company was incorporated in the United
States; in 1889, it started the wholly owned (London) Westinghouse Electric
Company, which had Westinghouse world patent rights outside the Western
Hemisphere. This subsidiary started as a trading, constructing, and installing
company, with no initial manufacturing; at the turn of the century, its successor
company would embark on manufacturing. Wilkins, Emergence of Multina-
tional Enterprise, 59. The German companies included both Siemens & Halske
and Schuckert & Co. In 1902, these companies merged their power engineering
activities to form Siemens-Schuckert. Feldenkirchen, Siemens, 93.
For the international business of General Electric and Westinghouse in the late
nineteenth and early twentieth centuries, see Wilkins, Emergence of Multina-
tional Enterprise, 94“96, which has nothing on investments in foreign utilities,
only on foreign manufacturing and sales. GE™s small interest in AEG apparently
dated from sometime between 1903 and 1905, when AEG was acquiring Union
Elektrizitats Gesellschaft (UEG), one of the companies in which GE (through its
Thomson-Houston heritage) had an interest. Ibid., 94. Before World War I,
Siemens had manufacturing plants in Austria-Hungary, France, Great Britain,
Russia, and Spain, as well as a large number of sales and technical bureaus
around the world. Peter Hertner, ˜˜L™Industrie Electrotechnique Allemande
entre les Deux Guerres: A la Recherche d™une Position Internationale Perdue,™™
Relations Internationales, 43 (Autumn 1985), 293. When AEG acquired UEG,
it acquired an interest in a group of foreign manufacturing facilities “ in Riga,
Vienna, and Milan, for example. Ibid., 296.
British Electrical and Allied Manufacturers™ Association, Combines and Trusts
in the Electrical Industry: The Position in Europe in 1927 (1927; reprinted
New York: Arno Press, 1977), 27. This is henceforth cited as BEAM,
In 1903, GE and AEG were dividing markets; so, too, in 1905, GE and British
Thomson-Houston agreed to selling rights in particular territories. Wilkins,
Emergence of Multinational Etnerprise, 94“95. The GE-AEG division of
markets came at the same time as AEG was taking over UEG.
Pierre Lanthier, ˜˜Multinationals and the French Electrical Industry,
1889“1940,™™ in Teichova, Levy-Leboyer, and Nussbaum, eds., Historical
Studies, 143“45; Patrick Fridenson, ˜˜France,™™ in Alfred D. Chandler,
Jr., Franco Amatori, and Takashi Hikino, Big Business and the Wealth of
Nations (Cambridge: Cambridge University Press, 1997), 210; Wilkins,
Emergence of Multinational Enterprise, 54. Lanthier writes that during the years
1880 to 1914 the French ˜˜electrical industry,™™ manufacturing and electricity
supply, was characterized by inward foreign investments that were sizable but did
not imply ˜˜domination.™™ He argues that in this period there were three waves of
inward foreign investments, the ¬rst during the 1880s in electric lighting, the
second in the 1890s concentrating on the electri¬cation of tramways and the
Notes to Chapter 3, Pages 93“93

development of power stations, and the third, in manufacturing plants to
take advantage of an expanding French market. Lanthier, ˜˜Multinationals,™™ 143“
47. See also Lanthier, ˜˜Les Constructions Electriques en France.™™
Fridenson, ˜˜France,™™ 210. Albert Broder, Alcatel Alsthom: Histoire de la
Compagnie Generale d™ Electricite (Paris: Larousse, 1992), 41; the second Swiss
´´ ´
representative was from the Banque Suisse et Francaise, which had been
founded in 1894. For the German prewar interests in France, see Peter Hertner,
˜˜Technologie et Capitaux Allemands dans l™Industrie Electrotechnique Francais
avant la Premiere Guerre Mondiale: Un Premier Bilan,™™ in Michele Merger and
` `
Dominique Barjot, Les Entreprises et Leur Reseaux: Hommes, Capitaux,
Techniques et Pouvoirs, XIXe“XXe Siecles, Melanges en l™Honneur de Francois ¸
Caron (Paris: PUP, 1998), 499“521.
Marco Doria and Peter Hertner, ˜˜Urban Growth and the Creation of
Integrated Electricity Systems: The Cases Genoa and Barcelona, 1894“1914,™™
in Andrea Giuntini, Peter Hertner, and Gregorio Nunez, eds., Urban Growth
on Two Continents in the 19th and 20th Centuries: Technology, Networks,
Finance and Public Regulation (Granada, Spain: Editorial Comares, 2004),
245“46 (on EEdC). See Chap. 3, note 114 below for more on this venture.
The ¬rst board of THM, as of 1898, had as president Victor Fris (a Belgian
politician and president of a Belgian local railway), along with representatives
of FTH, GE, UEG, Gesfurel, and SGB. For details on the board and the
shareholdings in THM, Lanthier, ˜˜Les Constructions Electriques en France.™™
Nikos Pantelakis, The Electri¬cation of Greece: From Private Initiative to State
Monopoly (1889“1956) (Athens: Cultural Foundation of the National Bank of
Greece, 1991), 40, 55“57, 71. This volume is in Greek; the relevant portions
have been translated for us by its author. Ibid., 74“75, gives the board of the
Compagnie Hellenique d™ Electricite, representing the founding group. See also
´ ´
Lanthier, ˜˜Les Constructions Electriques en France.™™ Less ambitious, and later,
but indicative of the general move abroad of French companies, in 1911 Joseph
Bligny, engineer and a key individual in Omnium Francais d™ Electricite (OFE),
¸ ´
had gotten concessions to develop electricity and other public services in two
Greek cities: Larissa and Corinth. In 1912, OFE led in establishment of
Omnium Hellenique d™ Electricite to develop those concessions. See Vuillermot,
´ ´
Pierre-Marie Durand, 99n74.
Lanthier, ˜˜Les Constructions Electriques en France.™™
AEG™s initial investments in utilities in Germany were by its predecessor
company; see Hughes, Networks of Power, 71“75. AEG may have had some
interest in the North American Company, associated with Deutsche Bank™s
involvement. On its Spanish interests, Gabriel Tortella, The Development of
Modern Spain (Cambridge, MA: Harvard University Press, 2000), 217“18. The
Pereire brothers were French. In 1852, they founded Societe Generale de Credit
´´ ´ ´ ´
Foncier (a mortgage bank) and Societe Generale de Credit Mobilier (planned as
´´ ´ ´ ´
a ˜˜railway bank™™). For the Pereire brothers™ international activities, see
Cameron and Bovykin, eds., International Banking, 8“10, 75, 85, 145, 531.
Before they got into public utilities ¬nance, they had been deeply involved in
railroads. On the divestment, see Doria and Hertner, ˜˜Urban Growth,™™
241n92: AEG explained its sale of the Madrid company in that the capital of
Notes to Chapter 3, Pages 94“95 349

this company was mainly in ˜˜foreign [French]™™ hands, and the price AEG got
was too good to refuse. From 1894, the Madrilena company came to be
dominated by French interests (the company had a dual board of directors, one
in Madrid and one in Paris). In 1897, Madrilena bought 62.5 percent of the
British free standing company Electricity Supply Company for Spain Ltd.,
which had been established in Madrid in 1889. Information from Anna Maria
Aubanell-Jubany, e-mail, Sept. 1, 2005, based on her thesis, Anna M. Aubanell-
Jubany, ˜˜La Industria Electrica y la Electri¬cacion de la Industria en Madrid
´ ´
entre 1890 y 1935,™™ Ph.D. thesis, European University Institute, Florence,
2001, pp. 14“21. Madrilena merged with the electricity business of Urquijo, a
key Spanish banker, forming in 1912 the Union Electrica Madrilena. The
´ ´ ˜
French did not do well as investors, and in July 1913 ˜˜the French presence
disappeared.™™ (Ibid., 116“17). Although there had been a long history of
foreign direct investment, by the end of 1913 there was none in the largest
electricity supplier in Madrid.
Doria and Hertner, ˜˜Urban Growth,™™ 231. Societe Lyonnaise des Eaux et de
´ clairage was founded in France in 1880. Before 1914, most of its investments
were still in France (Suez website: http://www.suez.com/en/groupe/history/
group-1822-1946/1822“1946/, accessed Sept. 26, 2007). This Spanish invest-
ment by Societe Lyonnaise des Eaux et de l™Eclairage appears to be the exception.
In 1905“1906, Electrobank would take over the ¬nancing of Barcelonesa. See
text and Chap. 3, note 114 below.
Javier Loscertales, Deutsche Investitionen in Spanien 1870“1920 (Stuttgart:
Franz Steiner Verlag, 2002), 148“252; Peter Hertner, ˜˜The German Electro-
technical Industry in the Italian Market Before the Second World War,™™ in
Geoffrey Jones and Harm Schroter, eds., The Rise of Multinationals in
Continental Europe (Aldershot, England: Elgar, 1993), 157; and Doria and
Hertner, ˜˜Urban Growth,™™ 219“30. UEG had interests in tramways in Naples.
Ranieri, Dannie Heineman, 43“45.
Luciano Segreto, ˜˜Financing the Electric Industry Worldwide: Strategy and
Structure of the Swiss Electric Holding Companies, 1895“1945,™™ Business and
Economic History, 23 (Fall 1994), 163.
The French Thomson-Houston, for example, had hoped to invest in both
manufacturing and tramways (1896“1902), but it got out of the tramway
(power) investments because it was not receiving adequate returns, owing to the
low rate structure imposed by municipalities. Lanthier. ˜˜Les Constructions
Electriques en France.™™ Earlier, we noted that General Electric had intended in
1893 to realize capital for its core business in a crisis time by spinning off
electric utilities.
Estimates made by Hertner, ˜˜Il Capitale Tedesco nell™Industria Elettrica
Italiana,™™ 242, 256; see also Doria and Hertner, ˜˜Urban Growth,™™ 219“30,
247“48. For another estimate on foreign direct investments in Italian electric
utilities that includes foreign capital other than that from the Germans, see
Luciano Segreto, ˜˜Imprenditori e Finanzieri,™™ in Storia dell™ Industria Elettrica
in Italia, vol.1 (Rome-Bari: Laterza, 1992), 332. (Segreto estimates that foreign
investors held 30 percent of the capital of Italian electric utilities in 1913.)
Considerable German investment was not made directly, but through Swiss
Notes to Chapter 3, Pages 95“97

holding companies. The 16.5 percent estimate of Hertner™s does not include
that ˜˜indirect™™ investment. Thus, the reduction of German interests and the
˜˜domestication™™ was not as extreme as the reduction from 40 percent to 16.5
percent suggests.
Riesser, German Great Banks, 124“25.
For the beginnings, see Segreto, ˜˜Financing the Electric Industry Worldwide,™™
164, and Peter Hertner, ˜˜German Multinational Enterprise Before 1914,™™ in
Peter Hertner and Geoffrey Jones, eds., Multinationals: Theory and History
(Aldershot, England: Gower, 1986), 128. The form was in part anticipated in
the United States by Thomson-Houston™s United Electric Securities Company
(in 1890) (see above).
On the numerous advantages of Switzerland for such companies, see Segreto,
˜˜Financing the Electric Industry Worldwide,™™ 163; Paquier, Histoire de
l™Electricite en Suisse, II, 960ff; and Peter Hertner, ˜˜Les Societes Financieres
´ ´´ `
´ lectrique Jusqu™a la Premiere
Suisses et le Developpement de l™Industrie E
´ `
Guerre Mondiale,™™ in Fabienne Cardot, ed., 1880“1980: Un Siecle d™ `
´ lectricite dans le Monde (Paris: PUF, 1987), 341“55. The ˜˜neutrality™™ of
E ´
Switzerland was important, for in both France and Germany capital was
˜˜commonly regarded as a servant of national purposes rather than an ordinary
private possession to be disposed of in accordance with the private judgment
and on the private risk of the owners,™™ and there was the long-standing
political enmity between France and Germany. Herbert Feis, Europe: The
World™s Banker 1870“1914 (1930; reprinted New York: Norton, 1965), 466.
BEAM, Combines, 55 (the quote). Jacques Thobie, ˜˜European Banks in the
Middle East,™™ in Cameron and Bovykin, eds., International Banking, 434 (on
the bringing together of French and German capital). In the Middle East, there
were particular con¬‚icts between German and French governmental aspirations
and the desire for in¬‚uence. On Belgian capital markets, see B. S. Chelpner, Le
Marche Financier Belge Depuis Cent Ans (Brussels: Librairie Falk Fils, 1930),
and Herman van der Wee and Martine Goossens, ˜˜Belgium,™™ in Cameron and
Bovykin, eds., International Banking, 113“29.
Theodore J. Grayson, Investment Trusts (New York: Wiley & Sons, 1928), 11
(on the origins of investment trusts).
Ginette Kurgan-Van Hentenryk, an expert on this subject, made the comment
on no single model.
On the other hand, C. K. Hobson, The Export of Capital (London: Constable,
1914), 44“45, found that a considerable amount of ˜˜French business™™ passed
through Brussels and London brokers owing to various French government
controls. He cites works on the history of ˜˜¬scal treatment of foreign
securities™™ in France. See also Feis, Europe: The World™s Banker.
On Belgian holding companies in tramways, see Alberte Martinez Lopez, ´
˜˜Belgian Investment in Tramways and Light Railways: An International
Approach, 1892“1935,™™ Journal of Transport History, 3rd ser., 24:1 (March
2003), 59“77; on tramways in Europe, Ranieri, Dannie Heineman, 42ff; John
McKay, Tramways and Trolleys: The Rise of Urban Mass Transport in Europe
(Princeton: Princeton University Press, 1976); see also contributions of Peter
Hertner, Harm Schroter, and Jean-Francois Hennart in Wilkins and Schroter,
¨ ¨
Notes to Chapter 3, Pages 97“98 351

eds., Free-Standing Company, 154, 335, 337“38, and P. V. Ol™, Foreign
Capital in Russia, translated from Russian with an introduction by Geoffrey
Jones and Grigori Gerenstain (1922; New York: Garland Publishing, 1983), 8,
140“44, 222“23 (for Russian tramway companies); Tortella, Development of
Modern Spain, 218 (the Belgians in Spanish tramways); Van der Wee and
Goossens, ˜˜Belgium,™™ in Cameron and Bovykin, eds., International Banking,
124, 126“27; and G. Kurgan-Van Hentenryk, ˜˜Finance and Financiers in
Belgium, 1880“1940,™™ in Youssef Cassis, ed., Finance and Financiers in
European History 1880“1960 (Cambridge: Cambridge University Press,
1992), 317“36 (general context).
Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 163“64. Swiss companies
typically had both German and French names. Thus, Elektrobank was also
known as Banque pour Entreprises Electrique, while Indelec was also known as
´ lectrique. On Indelec, see Peter Hertner,
Societe Suisse pour l™Industrie E
˜˜Espansione Multinazionale e Finanziamento Internationale dell™Industria
Elettrotecnica Tedesca Prima del 1914,™™ in Studi Storici (1987), 819“60.
Gall, ˜˜Deutsche Bank . . . 1870“1914,™™ 15. By contrast, Peter Hertner sees
Elektrobank as completely AEG-dominated. At one time, AEG held 95 percent
of the equity in Elektrobank. Hertner, ˜˜L™Industrie Electrotechnique
Allemande,™™ 297. Swiss bank historian Hans Bauer agrees: Elektrobank was
set up by AEG as its ˜˜¬nancing company.™™ Hans Bauer, Swiss Bank
Corporation (Basel: Swiss Bank Corp., 1972), 93.
Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 163“64, and Paquier,
Histoire de l™Electricite, II, 967ff. In mid-1895, Basler Bankverein (after an
1897 merger with Zurcher Bankverein, it became Swiss Bankverein, the
predecessor of Swiss Bank Corporation) decided to take a 1.5 million franc
interest in Elektrobank: ˜˜It was of importance in this context to cultivate
relations with Berlin and Vienna which ˜might be chilled by a refusal,™ and at
the same time it was desired . . . not to let the Basler Handelsbank steal a
march.™™ Bauer, Swiss Bank Corporation, 93. Basler Bankverein/Swiss Bank-
verein had interests in Austro-Hungarian railways. On Basler Handelsbank and
Indelec, see below.
Thus, as noted earlier, there was a strong Deutsche Bank in¬‚uence in Banca
Commerciale Italiana. Gall, ˜˜Deutsche Bank . . . 1870“1914,™™ 15. So, too, as
noted above, German, Austrian, and Swiss banks participated in the founding
of BCI. And, Paribas would become involved.
Albert Broder, ˜˜Banking and the Electrotechnical Industry in Western
Europe,™™ in Cameron and Bovykin, eds., International Banking, 479.
˜˜Credit Suisse,™™ Handbook on the History of European Banks, 1090. Within
the Handbook, there are general comments and also individual bank sketches,
provided by the individual bank (with no author given). Railroad ˜˜banks™™ and
holding companies in Switzerland provided a precedent for the holding
companies in the electric utilities sector. In 1879, the Schweizerische
Eisenbahnbank was founded by Credit Suisse (it was liquidated in 1885,
long before Credit Suisse got involved in electri¬cation). Jules Dublin, ¨
˜˜Die Finanzierungs- und Kapitalanlage-Gesellschaften der Schweizerischen
Grossbanken,™™ Ph.D. thesis, University of Basel, 1931 (Basel: Polygraphischer
Notes to Chapter 3, Pages 98“98

Verlag, 1937), 38“41. Another historian of Credit Suisse writes that the bank
˜˜traditionally had two representatives on Elektrobank™s board of directors, and
assumed the management of the business operations right from the start.™™
Joseph Jung, From Schweizerische Kreditanstalt to Credit Suisse Group. The
History of a Bank (Zurich: NZZ Verlag, 2000), 64. In 1910 Credit Suisse
founded the Schweizerisch-Argentinische Hypothekenbank, Zurich (known in
Argentina as Banco Hipotecario Suizo-Argentina) which was involved primarily
in electricity and that year (1910) set up a branch in Buenos Aires. Ibid.
111. On Motor, see Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 162“175,
and Luciano Segreto, ˜˜Du ˜Made in Germany™ au ˜Made in Switzerland™,™™ in
M. Trede, ed., Electricite et Electri¬cation dans le Monde 1880“1980 (Paris: PUF,
1992), 347“67. For Leu & Co. ™s involvement with electric utilities and Motor see
Handbook on the History of European Banks, 1056; Union Bank of Switzerland
(UBS) was formed in 1912; on its history see ibid., 1121“22. On the importance of
the private bank, Leu & Co., Jung, From Schweizerische Kreditanstalt to Credit
Suisse Group, 18“20, 69 (by 1913, measured by total assets, it was Switzerland™s
fourth largest bank, larger than UBS). When Motor was established, the Basel
bank, Swiss Bankverein (actually its predecessor, Basler Bankverein) conduc-
ted negotiations with Brown Boveri & Co., but ˜˜in view of the ˜inferior
representation on the Board of Directors as against Brown, Boveri™s ˜over-
predominance™, the business was ˜ultimately declined with thanks.™™™ Bauer, Swiss
Bank Corporation, 108. Swiss Bankverein, Basel“by 1913 Switzerland™s largest
bank“had become fully involved in ¬nancing electri¬cation in Switzerland and
abroad; in 1910, Swiss Bankverein was represented on the board of Brown, Boveri
(ibid., 174); thus, although Motor had limited banking connections, Brown,
Boveri came to cooperate with Swiss Bankverein in other projects. And while
Swiss Bankverein was not the lead bank in Elektrobank, Motor, or Indelec, that
bank™s activities in electri¬cation came to be ubiquitous. It assisted other Swiss
manufacturers as well as Brown, Boveri. It had its own network. It developed, for
example, close ties with the electrical equipment manufacturer, Alioth of Basel.
Alioth, in turn, was linked with the Sarasin family group of Basel that was
fascinated with the newly developing electrical industry. The latter had many
French connections, including those with Giros and Loucheur. Alfred Sarasin-
Iselin became allied with Swiss Bankverein as Alioth grew internationally; and just
before World War I, Brown, Boveri took over Alioth and its sales organization in
Spain, Italy, Austria, Holland, the United States, and South America. Although as
late as 1908, Swiss Bankverein looked with ˜˜disfavor™™ on French ˜˜power
stations,™™ it did come to participate in assisting the ¬nancing of French electric
power. It was also involved in Austria, through an associated railroad bank. That
railroad bank (holding company) increasingly steered its activities toward
electri¬cation. It is not surprising to learn that Swiss Bankverein was one of the
banks ¬nancing the projects of the American engineer Fred Stark Pearson. On
Swiss Bankverein pre“World War I engagements in electricity, see Bauer, Swiss
Bank Corporation, 90, 93, 108, 162“63, 173“75, 249; Paquier, Histoire de
l™Electricite, I, 268, II, 633“35, 642“46; on Alfred Sarasin-Iselin and A. Sarasin &
Co., Handbook on the History of European Banks, 1060; and on Swiss
Bankverein™s ¬nancing of Pearson, McDowall, Light, 235.
Notes to Chapter 3, Pages 98“99 353

112. Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 163“64; Paquier,
Histoire de l™Electricite, II, 1001; see ibid., 1006, on the ¬rst administrative
board of Indelec. For more on Indelec, see Hertner, ˜˜L™Industrie Electro-
technique Allemande,™™ 297, who notes that whereas AEG was dominant in
Elektrobank, Siemens had only a minority interest in Indelec. In 1913,
measured by total assets, Basler Handelsbank was smaller than Leu & Co. and
UBS, and much smaller than Swiss Bankverein and Credit Suisse. Jung, From
Schweizerische Kreditanstalt to Credit Suisse Group, 69. When Indelec was
formed, the plan was that Basler Bankverein (soon to be Swiss Bankverein) and
Basler Handelsbank would both participate, sharing the Swiss half of the
capital equally, but the two banks could not agree on the seats on the board of
directors, and Basler Handelsbank proceeded alone. Bauer, Swiss Bank
Corporation, 93. Prior to the formation of Indelec, Basler Handlelsbank had
partnered with Siemens (in 1893) in the construction of a hydroelectric power
station at Wynau, Switzerland. Serge Paquier, ˜˜Swiss Holding Companies
from the Mid-Nineteenth Century to the Early 1930s,™™ Financial History
Review, 8 (Oct. 2001), 175.
113. Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 165. In each country,
Elektrobank and Indelec shared ownership of the utilities with other investors.
Hertner, ˜˜Les Societes Financieres Suisses,™™ 347, lists nine European countries in
´´ `
which Elektrobank participated, as of June 1914: Finland, France, Germany,
Italy, Portugal, Romania, Russia, Spain, and Switzerland, as well as Turkey,
straddling Europe and Asia. All three holdings companies “ Elektrobank,
Indelec, and Motor “ had important investments in Italy. For their inward
Italian investments, see Paquier, Histoire de l™Electricite, II, 688“89, and various
works by Segreto, especially ˜˜Imprenditori e Financieri,™™ 333“35,
which documents the Italian electrical investments of Elekrobank, Indelec,
and Motor in 1913. See also Hertner, ˜˜Il Capitale Tedesco nell™Industria
Elettrica Italiana,™™ 211“56, and Hertner, ˜˜Les Societes Financieres Suisses,™™
´´ `
114. Doria and Hertner, ˜˜Urban Growth,™™ 231, explain Elektrobank™s role in
Compania Barcelonesa de Electricidad (Barcelonesa); AEG had invested in
Barcelonesa in 1894, and the initial management had been sent from AEG,
Berlin, to Barcelona. When in 1905“1907, Elektrobank took over the ¬nancing
of Barcelonesa and arranged for its shares to be introduced on a number of
European stock exchanges, the Swiss holding company became highly
entrepreneurial in its ¬nancing of the Spanish utility and also became relatively
more signi¬cant as a decision maker in the actual Barcelona operations.
Ibid., 231“35. In 1907, Elektrobank dispatched Carl Zander to Barcelonesa as
˜˜administrador delegado tecnico.™™ Doria and Hertner argue that AEG ˜˜clearly
had the last word in all strategic decisions™™ made by Barcelonesa; the latter
was required to use AEG as a general contractor for all construction work and
to purchase its electrotechnical material from AEG, Berlin. When after the
1907 business crisis there was a search for new shareholders, the AEG group
did not hesitate to bring in Elektrische Licht und Kraftanlagen AG (ELK),
which was a Siemens holding company and which in 1909“1910 acquired 9.17
percent of the shares of Barcelonesa. Ibid., 237.
Notes to Chapter 3, Pages 99“100

115. Segreto, ˜˜Financing the Electric Industry Worldwide,™™ 166. See Paquier,
Histoire de l™Electricite, II, 716“18, for Brown, Boveri™s interests in the Austro-
Hungarian empire, which included ¬nancing of electric utilities. Schweizerische
Eisenbahnbank “ the second by that name “ formed in Basel in 1890 became
closely associated with Swiss Bankverein in 1907, and both it and Swiss
Bankverein were involved through Steiermarkishe Elektrizitats-Gesellschaft
¨ ¨
(Steiermark Electric Power Co.) in electric utilities in the Austro-Hungarian
empire. Bauer, Swiss Bank Corporation, 162“63, 249. Swiss Bankverein, with
its two subsidiaries, the Eisenbahnbank and Schweizerische Gesellschaft fur ¨
Anlagewerte (Socval), actually founded the Steiermark company in 1910.
Ibid., 174.
116. Siemens, History of the House of Siemens, II, 147 (Siemens & Halske
participation). George F. W. Young, ˜˜German Banks and German Direct
Investment in Latin America, 1880“1920,™™ in Carlos Marichal, ed., Foreign
Investment in Latin America: Impact on Economic Development, 1850“1930
(Milan: Universita Bocconi, 1994), 63, says Siemens did not come in until 1906.
117. On DUEG/CATE, see Young, ˜˜German Banks and German Direct Investment
in Latin America, 1880“1920,™™ 60“64; Gall, ˜˜Deutsche Bank . . . 1870“
1914,™™ 61; Gerald Feldman, ˜˜The Deutsche Bank . . . 1914“1933,™™ in Gall,
et al., Deutsche Bank, 182“83; and Peter Hertner, ˜˜Foreign Direct Investment
and the Political Economy of Municipal Government: Compan±a Alemana ˜´
Transatlantica de Electricidad (CATE) and the Electri¬cation of Buenos Aires
and Santiago de Chile, 1898“1920,™™ unpublished paper presented at the
Business History Conference, Toronto, June 2006. An excellent contemporary
description of CATE™s holdings in Argentina, Chile, and Uruguay is in Frederic
M. Halsey, Investments in Latin America and the British West Indies (U.S.
Department of Commerce, Bureau of Foreign and Domestic Commerce,
Special Agents Series No. 169 [Washington, DC, 1918]), 68“69, 75, 243,
363“64, 494. In Argentina, CATE was involved in Buenos Aires and later in
Mendoza; in Chile, its interests were in Santiago, Valparaiso, and Vina del
Mar; in Uruguay, it provided electric tramway service in Montevideo. For a
brief review of the expansion of CATE in Buenos Aires and its taking over of
the existing French and British companies there, see Andrea Lluch and Laura
Sanchez, De Movimiento Popular a Empresa El Cooperativisismo Electrico
´ ´
en La Pampa (Santa Rosa: Fondo Editorial Pampeano, [2001]), 12“13.
For background on Gesellschaft fur Elektrische Unternehmungen (Gesfurel),
¨ ¨
Ranieri, Dannie Heineman, passim. Gesfurel was founded in 1894 by Isidore
Loewe as the ¬nancial branch of UEG. Ibid., 43. Both UEG and AEG appear to
have been involved in Argentina and Chile before the merger of the two
manufacturers. For Oscar Oliven™s stay in Argentina on behalf of UEG (and
Gesfurel), see ibid., 36. The 1913“1914 Elektrobank interest in CATE was the
3.4 percent interest in South America that Segreto reported (see above), with
con¬rmation in Hertner, ˜˜Les Societes Financieres Suisses,™™ 347.
´´ `
118. Halsey, Investments in Latin America, 21.
119. Different sources give different dates for the AEG takeover of UEG, for it was
a process. Hertner, ˜˜Financial Strategies,™™ 151, says it was in two stages in
1902 and 1904. The full takeover was completed in 1905.
Notes to Chapter 3, Pages 100“101 355

120. On UEG in Belgium, Van der Wee and Goossens, ˜˜Belgium,™™ 127; Ginette
Kurgan-Van Hentenryk, ˜˜Le Patronat de l™Electricite en Belgique, 1895“1945,™™
in Dominique Barjot, Henri Morsel, and Sophie Coeure, Strategies, Gestion,
´ ´
´ lectriques et Leurs Patrons, 1895“1945 (Paris:
Management: Les Compagnies E
EDF, 2001), 56, 61“62. Electrobel (Compagnie Generale d™Entreprises
´ lectriques et Industrielles, Brussels) was founded in 1929. Ranieri, Dannie
Heineman, 43, writes that SGB was started in 1895 by the Banque de Bruxelles
with the help of the two German ¬rms UEG and Gesfurel. Martinez Lopez, ´
˜˜Belgian Investment in Tramways,™™ 68“69, indicates that the Belgian partici-
pant, Societe Generale des Chemins de Fer Economiques (SGCF), was itself an
´´ ´ ´
important holding company. According to Martinez Lopez, SGCF was formed in
1889 (we believe this is a typographical error for 1880) by Banque de Bruxelles,
Paribas, and the private banks of Brugmann and Cassel; in 1913, its tramway
portfolio included forty different companies in ten countries. It was particularly
active in Mediterranean Europe, but it had investments worldwide. Also on
SGCF, see Kurgan-van Hentenryk, ˜˜Finance and Financiers in Belgium,™™ 318.
For its predecessor in Belgium, see Ranieri, Dannie Heineman, 42, and Martinez
Lopez, ˜˜Belgian Investment in Tramways,™™ 68 (Table 5, note b).
121. BEAM, Combines, 105.
122. Van der Wee and Goossens, ˜˜Belgium,™™ 122.
123. The best source on Heineman (and on So¬na) is Ranieri, Dannie Heineman.
Ranieri, 49, says SGB was involved in the 1898 formation of So¬na. See ibid.,
55, on the important UEG/Gesfural role in the formation of So¬na. Heineman
(1872“1962), born in North Carolina, had at age 8 gone with his mother to
Germany, where he received an electrical engineering degree from the
Technical College of Hanover in 1895 and joined UEG. From that base, he
had ¬eld assignments supervising the electri¬cation of streetcar systems,
construction of power stations, and the establishment of electricity distribution
systems. When he joined So¬na, he was 32 years old. See ibid., 15“51; see also
New York Times, Feb. 2, 1962 (obituary for Heineman). For basic data
on So¬na in 1913, see Martinez Lopez, ˜˜Belgian Investment in Tramways,™™
68“69 (No. 8 on Table 5 and No. 5 on Table 6).
124. Hertner, ˜˜German Electrotechnical Industry,™™ 158; Jean-Francois Hennart,
˜˜Transaction Cost Theory and the Free-Standing Firm,™™ in Wilkins and
Schroter, eds., Free-Standing Company in the World Economy (Oxford: Oxford
University Press, 1998), 94n21; Luciano Segreto, ˜˜Financing the Electric
Industry in Europe (1880“1945),™™ unpublished paper presented in 1993 in Paris
at a ˜˜pre-Milan-conference™™ meeting, henceforth cited as Segreto, Milan Paper.
See also Ranieri, Dannie Heineman, and Martinez Lopez, ˜˜Belgian Investment
in Tramways,™™ 68“69. Ranieri, Dannie Heineman, 76, indicates that on the eve
of World War I Heineman was on the board of eighteen companies on four
continents. In Argentina, CATE had in its expansion consolidated Argentine
tramways. On March 5, 1907 (the same year as CATE got its ¬fty-year
municipal concession), So¬na set up Compagnie Generale de Tramways de
Buenos Aires. This company, associated with CATE, with Belgian, English,
French, and German interests (a total of 26 participants), would take the
initiative and consolidate the Argentine tramway system. Ibid., 64“66.
Notes to Chapter 3, Pages 101“102

125. R. P. T. Davenport-Hines, Dudley Docker (Cambridge: Cambridge University
Press, 1984), 201.
126. Thobie gives all the names of the participants. Thobie, ˜˜European Banks in the
Middle East,™™ 431“34. Adding to the complexity (and to the ˜˜German
domination™™), as indicated later in this chapter, in So¬na™s sphere of in¬‚uence
was Societe Centrale pour l™Industrie Electrique (SCIE), the biggest ˜˜French™™
participant in Societe des Tramways et de l™Electricite de Constantinople.
´´ ´
127. On Motor, see text and notes above, speci¬cally, Segreto, ˜˜Financing the
Electric Industry Worldwide,™™ 165; Paquier, Histoire de l™Electricite, II, ´
677“92; and Pierre-Alain Wavre, ˜˜Swiss Investments in Italy from the XVIIIth
to the XXth Century,™™ Journal of European Economic History, 17 (Spring
1988): 94“97. At the end of 1911, Motor had taken part in the formation of
Compan±a Italo-Argentina de Electricidad (CIAE). BEAM, Combines, 89,
reports that when CIAE was formed in Buenos Aires, the Zurich banking
¬rm Leu & Co. participated; CIAE ˜˜became . . . a preserve for the Brown-
Boveri Company.™™ On Columbus, see Luciano Segreto, ˜˜Capitali, Technologie
e Imprenditori Svizzeri nell™Industria Elettrica Italiana: Il Caso della Motor
(1895“1923),™™ in Energia e Sviluppo. L™Industria Elettrica Italiana e la Societa
Edison (Turin: Einaudi, 1986), 200. At origin, CIAE was a shareholder in
Columbus, and Columbus seems to have taken over Motor™s investment
in CIAE, a case of cross-investments. The Italian manufacturers investing in
Columbus expected to sell to the South American electric power companies.
On CIAE, as seen from an Argentine perspective, see Maria Ines Barbero,
˜˜Grupos Empresarios, Intercambio Comercial e Inversiones Italianas en la
Argentina,™™ Estudios Migratorios Latinoamericanos, 5:(1990), 327“33. Also
on Motor, CIAE, and Columbus, see Hertner, ˜˜Les Societes Financieres
´´ `
Suisses,™™ 353.
128. Claude Ph. Beaud, ˜˜Investments and Pro¬ts of the Multinational Schneider
Group: 1894“1943,™™ in Alice Teichova, Maurice Levy-Leboyer, and ´
Helga Nussbaum, eds., Multinational Enterprise in Historical Perspective
(Cambridge: Cambridge University Press, 1986), 87; Segreto, Milan Paper.
Earlier, Schneider had shown little interest in this industry, although Schneider
had participated in a small electricity distributing company in Paris. Broder,
˜˜Banking and the Electrotechnical Industry in Western Europe,™™ 473; see also
Paquier, Histoire de l™Electricite, II, 1033ff. Paquier lists the founding group of
bankers on p. 1041. For the involvement of Swiss Bankverein (and its
predecessor) in Union Financiere de Geneve and in Franco-Suisse, see Bauer,
` `
Swiss Bank Corporation, 73, 90.
129. Hubert Bonin, ˜˜The Case of the French Banks,™™ in Cameron and Bovykin,
eds., International Banking, 82; he argues that closeness between German
banks and industry was absent in the French case, and, moreover, the French
had no advantage in electrical equipment industries. Ibid., 82“83. Paquier,
Histoire de l™Electricite, II, 1057“58 (Franco-Suisse and Italo-Suisse). Included
on the board of Italo-Suisse was Ernest Hentsch, of the private Geneva bank
Hentsch & Cie. Hentsch was associated with Franco-Suisse and with l™Union
Financiere de Geneve. Others on the board had connections with Paribas. Its
` `
particular investments in Italy were in the Societa Meridionale di Elettricita
` `
Notes to Chapter 3, Pages 102“104 357

(Meridionale) and the Societe Generale d™Illumination de Naples. Ibid., II,
´´ ´ ´
1042, 1060, and passim has a great deal on the activities of Franco-Suisse in
France, Italy, Norway, Spain, and Switzerland.
Ernst Himmel, Industrielle Kapitalanlagen der Schweiz im Auslande
(Langensalza, Germany: Druck von Hermann Beyer & Sohne, 1922), Table
11 (p. 136) and Recapitulation (no page number).
It is impossible to document the numerous Belgian holding companies. We
cover only the principal ones. Martinez Lopez, ˜˜Belgian Investment in
Tramways,™™ 68“69 (Tables 5 and 6), lists of a number of key Belgian tramway
holding companies in existence in 1913. One of the important ones that we
have not mentioned was Compagnie Mutuelle des Tramways, formed in 1895
and with holdings in forty-nine separate companies as of 1913. Its key
holdings were in Eastern, Western, and Mediterranean Europe. In 1911,
Societe Generale, Brussels, obtained a major interest in the company. For more
´´ ´ ´
on Compagnie Mutuelle des Tramways, which would become part of Traction
et Electricite (Tractionel) and much later Tractebel, see Ranieri, Dannie
Heineman, 80n2, and Kurgan-van Hentenryk, ˜˜Finance and Financiers in
Belgium,™™ 322. Societe Generale, Brussels, was slow to enter into the electricity
´´ ´ ´
sector and had not begun to do so until 1905 (some ten years after Banque de
Bruxelles™ involvement in SGB “ see above). Ibid.
Lanthier, ˜˜Les Constructions Electriques en France™™ is splendid on the Empain
group. See also Van der Wee and Goossens, ˜˜Belgium,™™ 126“27; Herman Van
der Wee and Monique Verbreyt, The Generale Bank 1822“1997 (Tielt,
Belgium: Lannoo, 1997), 111; Segreto, Milan Paper; Barjot, Morsel, and
Coeure, Strategies, Gestion, Management, 7, 15, 59“60, 180“81; Kurgan-Van
´ ´
Hentenryk, ˜˜Finance and Financiers in Belgium, 1880“1940,™™ 318“19; and
speci¬cally on Compagnie Generale de Railways et d™Electricite, see Martinez
´´ ´
Lopez, ˜˜Belgian Investment in Tramways,™™ 68“69. Robert L. Tignor, State,
Private Enterprise, and Economic Change in Egypt, 1918“1952 (Princeton:
Princeton University Press, 1984), 28, 182“83 (on the Empain group in Egypt).
Take another case, that of Societe Centrale pour l™Industrie Electrique (SCIE),
Paris, organized in 1909; we mentioned that in 1914 it had participated in
Societe des Tramways et de l™Electricite de Constantinople, registered in
´´ ´
Belgium. In 1910, once again in partnership with the Belgian holding company
So¬na and now with an existing French tramway company, Compagnie
Centrale de Chemins de Fer et Tramways (in which So¬na had an interest), SCIE
´ ´
created yet another holding company, Compagnie Centrale d™Energie Electrique
(CCEE), which in turn acquired the central power station in Rouen (previously
owned by CGE). CCEE in 1911 got a concession to produce and distribute
electricity in the suburbs of Algiers (the capital of the French colony Algeria);
CCEE did this directly and did not establish any separate corporate entity (until
1935). By 1914, SCIE had a tranche in utilities in Russia and Argentina, as well
as in Turkey, in its headquarters nation, France, and in Algeria. Its initial
shareholders included two manufacturers that were part of the U.S. General
Electric network, the French Thomson-Houston and AEG, along with the AEG-
associated holding companies So¬na and Elektrobank, and three major French
banks, Comptoir National d™Escompte de Paris (CNEP), Banque de l™Union
Notes to Chapter 3, Pages 104“105

Parisienne (BUP), and Societe Generale, Paris. Pierre Lanthier emphasizes
´´ ´´
the importance of the role of the bank, CNEP, in SCIE™s early years. (Note
that CNEP was one of the banks involved in the Constantinople company.)
Was SCIE a French equivalent of Elektrobank? Was it active in doing
Unternehmergescha Lanthier™s ¬ndings are negative. From the start, it was
meant to have a purely ¬nancial role in collaboration with other (and more
important) holding companies and with key banks. Thobie, ˜˜European Banks in
the Middle East,™™ 432 (on CNEP™s participation in the Constantinople group);
Lanthier, ˜˜Les Constructions Electriques en France™™; and Bonin, ˜˜The Case of the
French Banks,™™ 82. On the strong AEG in¬‚uence on SCIE, see Hertner,
˜˜Technologie,™™ 519. Hertner writes that AEG did not participate directly in SCIE,
but rather through So¬na (Brussels), Gesfurel (Berlin), and Elektrobank (Zurich).
See text above and Hausman, ˜˜Historical Antecedents,™™ 28. As noted, United
Electric Securities Co. was absorbed into General Electric when the latter was
formed in 1892. It became a holding of Electric Bond & Share in 1905.
Mitchell, S. Z. Mitchell, 63. The North American Company survived as an
independent ¬rm, becoming a key multistate U.S. holding company; it did not
ever seem to have utilities abroad. See Hausman, ˜˜Historical Antecedents,™™
38, 56, for North American Company™s importance in 1915 and in the 1920s.
Ibid., 29, and Mitchell, S. Z. Mitchell, 62“63. The Thomson-Houston
companies were Ateliers Thomson-Houston, Compagnie Francais pour ¸
L™Exploitation des Procedes Thomson-Houston and Compagnie d™Electricite
´´ ´
Thomson-Houston de la Mediterranee. Compagnie Francais pour L™Exploita-
´ ´
tion des Procedes Thomson-Houston was, as noted earlier, the formal name
for the French Thomson-Houston; Ateliers Thomson-Houston was a partially
owned subsidiary of the latter. At origin, Electric Bond and Share Company
owned preferred shares in United Electric Securities Co.
Hausman, ˜˜Historical Antecedents,™™ 32, 38“39.
Adams, Niagara Power. I, 228, 240, 306“37; II, 290“91. Another case was the
Ontario Power Company of Niagara Falls, which was incorporated under
Canadian laws, June 23, 1887, as the Canadian Power Co. (the name change
was in 1889). In 1914, its ˜˜executive of¬ce™™ was Buffalo, New York, and it
furnished power both to Canadians and across the border in the United States.
Irving Stone, The Composition and Distribution of British Investment in Latin
America, 1865 to 1913 (New York: Garland, 1987), 457; J. Fred Rippy,
British Investments in Latin America, 1822“1949 (Minneapolis: University of
Minnesota Press, 1959), 244. Halsey, Investments in Latin America, 536. The
companies were Compan±a Luz y Fuerza de Parana (Argentina), Compan±a de
˜´ ˜´
Electricidad de Merida (Mexico), and Venezuelan Electric Light Co.
In the early years, central power plants might be established by existing
manufacturing companies and owned with no separate corporations formed.
By the 1890s, however, as indicated earlier, this was generally no longer the
case. Power plants were owned by corporations dedicated to providing power
We have no idea of the number of foreign-owned operating companies at any
point in time, but we hazard a very rough guess that in 1914 the number would
be in the range of 800 to 1,000.
Notes to Chapter 3, Pages 105“108 359

141. Stone, Global Export of Capital, 42“381, has tabulations of British ˜˜Capital
Calls™™ (1865“1914) in the electric light and power sector. He provides no
company names (or numbers of companies). Earlier, we noted that he found a
surge in capital calls in this sector in 1882, including calls for capital for
companies operating in Austria-Hungary, Chile, India, and South Africa;
earlier, we identi¬ed these calls as associated with the ˜˜Brush boom.™™ Most of
these could be interpreted (based on information outside of Stone™s book) as
British free standing companies. The vast majority of the companies did not
have a sustained life. The best source on them is the Manual of Electrical
Undertakings (London: Electrical Press; cited hereafter as Garcke, after its
original compiler, Emile Garcke); we have used various issues. Also useful are
London stock exchange manuals. Some companies disappeared because they
never found (adequate) ¬nancing; others started up and failed after several
years of existence; a number dropped out because they were superceded by or
merged into successor companies, or they might have moved their registration
overseas and no longer be listed as British-registered entities. Thus, the number
of British-registered formations before 1914 does not correspond with the
number of operating companies in 1914. Moreover, this was just one way
operating companies could be set up.
142. We began with the Australian Nash Directory 1913/14 listings with help from
David Merrett, Melbourne, Australia. Then we turned the coin over and looked
at the British side of the story. We have earlier referred to Reader, A House in
the City, on Foster & Braithwaite™s activities in electric utilities. Braithwaite™s
application to the IEE is from Kynaston, City of London, II, 463. Ranald
Michie, London Stock Exchange (Oxford: Oxford University Press, 1999),
139, ¬rst put us on to these connections. See also Lance E. Davis and Robert
E. Gallman, Evolving Financial Markets and International Capital Flows:
Britain, the Americas, and Australia 1865“1914 (Cambridge: Cambridge
University Press, 2001), 542, for calls on the London stock market by Electric
Lighting and Traction of Australia (between 1899 and 1901) and its successor
Melbourne Electric Supply Company (1909). Ibid., 171, indicates that Electric
Lighting and Traction Company of Australia (ELTC) was one of the companies
promoted by Foster & Braithwaite. On ELTC, see Nash Directory, 1907, 174.
There is in the Thomas Edison Papers evidence of a continuity between Edison
Indian and Colonial Company, Australasian Electric Light, Power and Storage
Company, and its successor ˜˜Brush Electrical Engineering Company of
London.™™ See Eaton & Lewis, ˜˜Mr. Edison™s Patent Obligations to Edison
Indian and Colonial Company: Mr. Eaton™s Opinion, December 1, 1891.™™
TAEP. The Brush group of companies was associated with Foster &
Braithwaite, and one can guess that the Melbourne companies were in this
143. Schapiro, ˜˜Public Ownership and Private Investment,™™ 222“25; Byatt, British
Electrical Industry, 148.
144. Schapiro, ˜˜Public Ownership and Private Investment,™™ 225. On Anglo-
Argentine Tramways Co. Ltd., see Halsey, Investments in Latin America,
483“84. This was a tramway company in which the Belgian So¬na was very
much involved. Ranieri, Dannie Heineman, 64“66.
Notes to Chapter 3, Pages 109“109

145. William Hausman, based on material in Garcke, 1913“1914, has prepared a
more complete list. Rippy, British Investments in Latin America, 242,
estimated, based on the Stock Exchange Year-Book for 1913 and 1914, that
British investors had interests in some 80 ˜˜electric utilities™™ enterprises in Latin
America in 1913 (this number goes far beyond U.K.-registered, free standing
companies). See also Stone, Composition and Distribution of British
Investment in Latin America, 78, 80“81, 83, 86“88, and 456“59, and FTC
Report, II, 543“45.
146. Geoffrey Jones, The Evolution of International Business (London: Routledge,
1996), 148, 155; the English ¬rm Imperial Continental Gas Association, which
in 1825 made its ¬rst foreign direct investment providing gas in Ghent in The
Netherlands (in 1830, part of Belgium), added electric utilities within its
municipal concessions. On its 1915 capital, see FTC Report, II, 543. Rippy,
British Investments in Latin America, 241, has a list of ˜˜British gas companies
in Latin America, 1913,™™ which reveals how many of them had become
associated with electric light and power companies.
147. Marc Linder, Projecting Capitalism: A History of the Internationalization of
the Construction Industry (Westport, CT.: Greenwood Press, 1994), 87,
and Dominique Barjot, La Grande Entreprise Francaise de Travaux Publics
(1883“1974) (Paris: Economica, 2006), 121. Ol™, Foreign Capital in Russia,
113, notes that operating under Russian statutes was the German ¬rm ˜˜Fillipp
Golzman & Co., Russian Overground and Underground Construction
Company™™; this is surely a mistranslation of Philipp Holzmann. The Philipp
Holzmann ¬rm was closely associated with the Deutsche Bank on a number of
projects, including the Baghdad Railway. Emden, Money Powers, 231.
148. The French group Giros et Loucheur had been the founders of Societe Generale
´´ ´ ´
d™Entreprises (SGE). On SGE™s business in Belgium, the Ottoman Empire, and
then Russia, Italy, and Spain and also on Giros et Loucheur™s international
expansion, see Dominique Barjot, ˜˜Le Role des Entrepreneurs de Travaux
Publics: L™Exemple du Groupe Giros et Loucheur (1899“1946),™™ in Monique
Trede-Boulmer, ed., Le Financement de l™Industrie Electrique 1880“1980
(Paris: PUF, 1994), 75, 77, and Barjot, Grande Entreprise Francaise, passim.
Davenport-Hines, Dudley Docker, 204, describes the careers of Louis
Loucheur and Alexandre Giros in railroad electri¬cation and hydroelectric
developments in France and overseas, as well as their 1908 formation of SGE,
which became a ˜˜great force in French electro-technology and electrical
services, but also established subsidiaries in the Ottoman Turkey (1909“1910),
Morocco (1911), Russia (1912), and elsewhere.™™ In the 1910 formation of
Societe Generale d™Entreprises dans l™Empire Ottoman, two other French
´´ ´´
construction companies participated: Grands Travaux de Marseille and
Fougerolle Freres. Barjot, Grande Entreprise Francaise, 196. See also Linder,
Projecting Capitalism, 86; Feis, Europe: The World™s Banker, 321; Barjot,
Morsel, and Coeure, Strategies, Gestion, Management, 182.
´ ´
149. Catherine Vuillermot, ˜˜Le Groupe Durand: Une Multinationale Francaise de ¸
´ lectricite (dans la Premiere Moitie du XXe Siecle)?™™ in
la Distribution de l™E ´ ´ `
Hubert Bonin, et al., Transnational Companies (19th “20th Centuries) (Paris:
PLAGE, [2002]), 367. For SGE™s role in the electri¬cation of Turkey, see
Notes to Chapter 3, Pages 110“110 361

Barjot, Grande Entreprise Francaise, 220. Barjot does not mention SOEC
but writes of ˜˜L™Ottomane d™Electricite,™™ seemingly referring to Societe
´ ´´
´ lectrique de Constantinople, the Giros et Loucheur/SGE company
d™Eclairage E
in Constantinople. He writes that the French did not get into tramways,
leaving that to the Germans and ˜˜Elektrobank™s company,™™ Societe des ´´
Tramways de Constantinople. Ibid.
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 375“76; Linder,
Projecting Capitalism, 108; Hughes, Networks of Power, 386“91.
Hausman, ˜˜The Historical Antecedents,™™ 38.
Cleona Lewis, America™s Stake in International Investments (Washington, DC:
Brookings Institution, 1938), 324.
Marchildon, ˜˜The Montreal Engineering Company,™™ 396.
Linder, Projecting Capitalism, 108.
In the literature, there is some confusion about the nationality of J. G. White &
Co., which began as an American ¬rm. Armstrong and Nelles, Southern
Exposure, 128, correctly identi¬es it as a ˜˜New York ¬rm of utility engineers
and promoters.™™ In 1917, it would become a subsidiary of the British trading
¬rm Alfred Booth. Within the Alfred Booth group, its activities were constrained
and temporarily eclipsed; and as a result, in 1929 it was sold back to its founder.
Geoffrey Jones, Merchants to Multinationals: British Trading Companies in the
Nineteenth and Twentieth Centuries (Oxford: Oxford University Press, 2000),
104 (on the 1917“1929 period). Jones wrongly identi¬ed the White ¬rm, before
its acquisition by Booth, as British. He correctly described the White ¬rm in
1917 as ˜˜specializing in the management of public utilities in Latin America.™™
The British journal Engineer in 1916 made the same mistake, assuming that
J. G. White & Co. was a London-headquartered ¬rm; see Linder, Projecting
Capitalism, 108n109. Interestingly, a look at the board of the Canadian-
registered (in 1913) International Light & Power Co. Ltd. ¬nds George M.
Booth among the directors. See Halsey, Investments in Latin America, 536.
When Canadian interests replaced the German ones in Barcelona, F. S. Pearson
was the principal ¬gure in the activities. In 1911, the Canadian-registered
Barcelona Traction, Light and Power Company (BTLP) took over the German
Barcelonesa (Elektrobank sold its 25 percent of the shares in the Barcelona
company to BTLP, while at the same time Elektrobank loaned money to BTLP,
accepting the latter™s shares as collateral). Why were the Germans ready to sell
out to the Canadian-registered ¬rm? Doria and Hertner speculate that the
cause was ˜˜chronic ˜capital famine,™™™ combined with a need for liquidity for
new investments in other places. And, the Canadians offered a good price.
Doria and Hertner, ˜˜Urban Growth,™™ 240“41. Meanwhile, in 1911, another
Barcelona company, Energ±a Electrica de Cataluna (EEdC) was founded by the
´ ´ ˜
´ lectricite (CGE); Siemens™s holding
French ¬rm Compagnie Generale d™E
´´ ´
company Indelec acquired EEdC securities. CGE would build the steam power
plant, and Indelec supplied the technological know-how for the hydroelectric
part of EEdC™s project. Ibid., 245. CGE subscribed 47 percent of the shares
and Indelec 33 percent, while the rest went to the Catalan owner of the
waterpower concession. By 1913, BTLP had gained controlling interest in
EEdC. Pearson was responsible. (In the process of gaining controlling interest,
Notes to Chapter 3, Pages 110“112

shareholders in the EEdC obtained shares in BTLP, so there remained
connections.) The Barcelona ¬rms became part of ˜˜F. S. Pearson group™™ of
companies (this was exceptional; the other key ventures were in Latin
America, especially Mexico and Brazil).
Because F. S. Pearson was so closely associated with the Canadian ventures
abroad, he was often thought of as Canadian, which was not the case: He was
an American engineer, and his ¬rm was in New York.
ELK served as a Siemens holding company for many domestic, German
electricity supply companies and also had an interest in the German/Argentine
DUEG, as well as in the Constantinople company. On the Brazilian operating
company see Young, ˜˜German Banks and German Direct Investment,™™ 60; on
Theodor Wille, see Mira Wilkins, ˜˜An Alternative Approach,™™ in Steven C.
Topik and Allen Wells, The Second Conquest of Latin America (Austin:
University of Texas Press, 1998), 194; on ELK, see BEAM, Combines, 143.
Armstrong and Nelles, Southern Exposure, 88; Gibbs, while a trading house
was also involved in merchant banking. Jones, Merchants to Multinationals,
42, 53, 227. In Asia, British trading company interests, namely, Gibb,
Livingston & Co. and Jardine, Matheson, were closely associated with the
formation and operation of the large lighting and power station of Hong Kong
Electric Co., registered in Hong Kong. See Austin Coates, A Mountain of Light
(Hong Kong: Heinemann, 1977), 200“1, for the board chairmen and directors.
Reinhard Liehr and Georg Leidenberger, ˜˜From Free-Standing Company to
Public Enterprise: The Mexican Light and Power Company and the Mexican
Tramways Company, 1902“1965,™™ typescript prepared for International
Economic History Congress, Buenos Aires, July 2002 (˜˜Part 2: Mexico
Tramways Company™™ was separately prepared by Georg Leidenberger), 3.
This article formed the basis of Reinhard Liehr and Georg Leidenberger,
˜˜El Paso de una Free-Standing Company a una Empresa Publica: Mexican
Light and Power y Mexico Tramways, 1902“1960,™™ in Sandra Kuntz Ficker y
Horst Pietschmann, eds., Mexico y La Econom±a Atlantica (Siglos XVIII“XX)
´ ´
(Mexico: El Colegio de Mexico, Centro de Estudios Historicos, 2006),
´ ´
269“309. There are differences, so at times we will cite the typescript.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ 3; Liehr and
Leidenberger, ˜˜El Paso de una Free-Standing Company,™™ 272; Armstrong and
Nelles, Southern Exposure, 88.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ 3; Liehr and
Leidenberger, ˜˜El Paso de una Free-Standing Company,™™ 273.
Armstrong and Nelles, Southern Exposure, 88; apparently, a Mexican
subsidiary of the Mexican Electric Works Ltd. was also established: Compan±a
Mexicana de Electricidad, SA; Liehr and Leidenberger, ˜˜From Free-Standing
Company,™™ 5.
Armstrong and Nelles, Southern Exposure, 85“88; the waterpower conces-
sions had been earlier granted to Dr. Arnold Vaquie, a French citizen, and the
Societe de Necaxa, a French free standing company set up for the sole purpose
of holding the concession. Miguel S. Wionczek, in his otherwise excellent
discussion of electric power in Mexico, mistakenly assumed that F. S. Pearson
was ˜˜Canadian.™™ Miguel S. Wionczek, ˜˜Electric Power,™™ in Raymond Vernon,
Notes to Chapter 3, Pages 112“114 363

ed., Public Policy and Private Enterprise in Mexico (Cambridge, MA: Harvard
University Press, 1964), 23.
Armstrong and Nelles, Southern Exposure, 87“88. Merrill Denison, Canada™s
First Bank: A History of the Bank of Montreal, 2 vol. (New York: Dodd,
Mead, 1966, 1967), II, 419“20; Drummond was vice president, 1887“1905,
and president, 1905“1910; Clouston was general manager, 1890“1911, and
coincidentally vice president of the bank, 1905“1912.
Armstrong and Nelles, Southern Exposure, 89.
Ibid., 88“89, 91; as our readers know, So¬na was Belgian-headquartered but
German-dominated at this time.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ 7.
Denison, Canada™s First Bank, II, 281.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ Part 2, 7“8.
Ibid., 8. We discussed Wernher, Beit earlier in this chapter.
Armstrong and Nelles, Southern Exposure, 95.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ Part 2, 9, say that
Mexican Electric Tramways Ltd., while still controlled by Wernher, Beit, was
reincorporated in Canada in 1901; Rippy, British Investments in Latin
America, 248, gives an 1898 date for the British company.
Armstrong and Nelles, Southern Exposure, 97“98. Robert Fleming had been
based in Dundee, Scotland, but by this time he had moved its headquarters to
Ibid., 98“104.
On Guanajuato Power and Electric Co., see New York Times, Feb. 21, 1903;
July 1, 1908; May 2, 1910. Henry Hine, president of Guanajuato Power and
Electric, was also a director of the Guanajuato Reduction and Mines Co.
Ibid., April 11, 1906. See also Moody™s 1914, 375 (for the date of
incorporation under Colorado laws); the main of¬ces of this company were
in Colorado Springs, CO. By 1913, the company owned the entire capital
stock of the Michoacan Power Co. ˜˜and guarantees the principal and interest
on the latter company™s bonds.™™ It also owned practically all the common
stock of the Central Mexico Light & Power Co., ˜˜which was organized to
carry on the light and power business of the company . . . .™™ Hausman and
Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 376 (El Paso). Marchildon, ˜˜The
Montreal Engineering Company,™™ 394 (on the Monterey company). On the
Compan±a Hidroelectrica de Chapala, see Wionczek, ˜˜Electric Power,™™ 31;
˜´ ´
Wionczek does not give a date of formation, but indicates that with the
revolution, in 1912, it stopped its expansion program, although it did resume
at a later point. The New York Times, Aug. 21, 1903, had an item that said,
˜˜[A]n American syndicate, it is said, proposes to construct a huge
waterpower plant near the city of Guadalajara, Mexico, to generate
electricity for lighting, traction, mining and other purposes.™™ See Table 1.1
on the Chapala company™s transmission system (the name is slightly
different, but this is clearly the same company). At some point, the Chapala
company seems to have come under the control of the Banco Nacional of
Mexico City; in 1926, however, it was back under U.S. ownership, acquired
Notes to Chapter 3, Pages 114“118

by Morrison-McCall interests. Hausman and Neufeld, ˜˜U.S. Foreign Direct
Investment in Electrical Utilities,™™ 382.
Liehr and Leidenberger, ˜˜From Free-Standing Company,™™ 18.
Armstrong and Nelles, Southern Exposure, 253, 344n9; Marchildon, ˜˜The
Montreal Engineering Company,™™ 394, 397.
Note that there are three (unrelated and not to be confused) Pearsons in the
pre“World War I Mexican story: (1) the American engineer, F. S. (Fred Stark)
Pearson; (2) the Canadian lawyer B. F. Pearson; and (3) the Englishman
Weetman D. Pearson (from 1910 Lord Cowdray), associated with the
construction ¬rm S. Pearson & Son.
J. A. Spender, Weetman Pearson: First Viscount Cowdray, 1856“1927
(London: Cassell & Co., 1930), 16“17, 84“100. William Hausman found
(mis¬led) in Box B4, S. Pearson & Son Ltd. Papers, Science Museum Library,
London (henceforth cited as Pearson papers), a personal note from Por¬rio
D±az to Weetman Pearson, dated June 1911, that re¬‚ected their closeness.
Spender, Weetman Pearson, 107.
Ibid., 109, 205; see Stone, The Composition, 459, for the date.
Stone, The Composition, 456, and data in Box B4, Pearson papers (on Anglo-
Mexican Electric Company). Reinhard Liehr and Mariano E. Torres Bautista,
˜˜British Free-Standing Companies in Mexico, 1884“1911,™™ in Wilkins and
Schroter, eds., Free-Standing Company in the World Economy, 265; Spender,
Weetman Pearson, 206. On Worswick™s connection with Wernher, Beit, see
Armstrong and Nelles, Southern Exposure, 196. We have tried in vain to
identify Luebeck; our linking him with Siemens & Halske is a ˜˜guess.™™
Spender, Weetman Pearson, 106.
Ibid., 18 (on Brook¬eld), 289 (on the contract).
Ibid., 49“171; Geoffrey Jones and Lisa Bud-Frierman, ˜˜Weetman Pearson and
the Mexican Oil Industry (A),™™ Harvard Business School Case N9-804-085
(Nov. 3, 2003).
Spender, Weetman Pearson, 206.
FTC Report, II, 545; Stone, The Composition, 459. Linda Jones, Charles
Jones, and Robert Greenhill, ˜˜Public Utility Companies,™™ in D. C. M. Platt,
Business Imperialism 1840“1930: An Inquiry Based on British Experience in
Latin America (Oxford: Oxford University Press, 1977), 80.
Spender, Weetman Pearson, 206 (on Lord Cowdray™s experience during the
revolution), and ibid., 36 (on his becoming Lord Cowdray in 1910).
The Canadian companies are given in the text above. Note that the Puebla
company was associated with the Cowdray group of companies. FTC Report,
II, 544“45 (on the English companies) and data in Pearson Papers. On
International Light & Power Co. Ltd., see Halsey, Investments in Latin
America, 536.
Wionczek, ˜˜Electric Power,™™ 25“26. Wionczek estimates that some $75
million of British, Canadian, and U.S. capital was invested in Mexican electric
power generation and distribution between 1900 and 1910. Ibid., 22.
Ibid., 21 (˜˜remarkable speed™™).
We have used a variety of sources on this, including Jonathan Coopersmith,
The Electri¬cation of Russia, 1880“1926 (Ithaca, NY: Cornell University
Notes to Chapter 3, Pages 119“120 365

Press, 1992), 45“87. Coopersmith notes that Imatra involved nine Belgian,
German, and Russian banks, a number of electrotechnical manufacturers, and
three Russian utilities. Ibid., 85. We have also found useful Timo Myllyntaus,
˜˜Electrical Imperialism or Multinational Cooperation? The Role of Big Business
in Supplying Light and Power to St. Petersburg Before 1917,™™ Business and
Economic History, 26 (Winter 1997), 540“49 (according to Myllyntaus T & F
Mottart of Brussels was the banking house most closely associated with SSPT);
P.V. Ol™, Foreign Capital in Russia (New York: Garland, 1983; ¬rst published
in Russian in 1922), esp. 47“49, 110“14, 141“42, provides lots of detail;
see also Paquier, Histoire de l™Electricite, II, 990“91; Hertner, ˜˜Les Societes
´ ´´
Financieres Suisses,™™ 347; and Ranieri, Dannie Heineman, 75 (on So¬na in
Davis and Gallman, Evolving Financial Markets, 389. On Vancouver Power as
a subsidiary of BCER, see Armstrong and Nelles, Monopoly™s Moment, 99. On
Davis and Gallman™s list was Shawinigan Water and Power Company, a U.S.
direct investment. Davis and Gallman give the U.K. ¬‚ow of funds into public
utilities, 1906“1914, to Canada as almost $48 million (this ¬gure includes
$13.7 million for Bell Telephone of Canada, raised in the United Kingdom; the
rest appears to have been for light and power companies). While not speci¬ed,
I think one has to assume these ¬gures provided in Davis and Gallman are in
Canadian dollars.
Quoted in Jacob Viner, Canada™s Balance of International Indebtedness
1900“1913 (Cambridge, MA: Harvard University Press, 1924), 89.
Armstrong and Nelles, Southern Exposure, 164. Alfred Loewenstein in
Brussels and Arnold Spitzer in Paris picked up the European bonds for
distribution among their clients. In London, Fleming and other houses took up
the issue, which was oversubscribed. E. R. Wood, of Dominion Securities,
handled the distribution in Canada. As noted earlier, for the Canadians the
Barcelona promotion was an exceptional one in Europe; most of the Canadian
promotions were for companies in Latin America and the Caribbean (as well
as in Canada). The initial issue for BTLP proved inadequate, and it was
followed up by a further bond issue in 1913, with the ratios: 71 percent to
continental Europe, 19 percent for Great Britain, and 10 percent to Canada.
Both these bond issues for BTLP, although for a Canadian-registered company
(located in Spain), were denominated in pounds. Ibid.
Richard Roberts, Schroders (Houndmills, England: Macmillan, 1992), 139;
the following year, 1911, Schroder ¬‚oated a loan for the Peruvian government.
See also Rory Miller, ˜˜The West Coast of South America,™™ in Wilkins and
Schroter, eds., Free-Standing Company in the World Economy, 222, 234.


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