. 16
( 20)


role in Barcelona Traction and in the Mexlight companies. Both appear under
the rubric Sidro in So¬na, Annual Report 1929, 39“40 (Brazilian Traction was
not included). During the 1920s, Loewenstein took part in other public utilities
holding companies as well as a range of projects in the rayon industry.
Notes to Chapter 4, Pages 156“158

John Wasik notes that Cyrus Eaton was in league with Loewenstein in an
unsuccessful 1928 speculation related to Insull shares. John F. Wasik, Merchants
of Power: Samuel Insull, Thomas Edison, and the Creation of the Modern
Metropolis (New York: Palgrave Macmillan, 2006), 166. The differences
between Loewenstein and Heineman came down to the fact that the former was
a market operator, while the latter was an engineer.
Lanthier, ˜˜Les Constructions Electriques en France™™ (on the Empain group).
Robert Vitalis interprets information from BEAM, Combines, as indicating that
in 1927 the Empain group had interests in forty-two electric railway and
tramway operations in fourteen countries along with twenty-¬ve electricity
supply companies in four countries. Vitalis, When Capitalists Collide, 67. On
Empain in the 1920s, see also Segreto, Milan Paper; Dominique Barjot and
Henri Morsel, ˜˜Introduction,™™ Barjot, Morsel, and Coeure, Strategies, Gestion,
´ ´
´ lectriques en Guerre,
Management, 15; Dominique Barjot, ˜˜Les Entreprises E
1914“1918,™™ in ibid., 180“81; Kurgan-Van Hentenryk, ˜˜Le Patronat,™™ 59“60,
67; and 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), 318“19, 331. On
the Empain group™s Egyptian business, Robert L. Tignor, State, Private
Enterprise, and Economic Change in Egypt, 1918“1952 (Princeton: Princeton
University Press, 1984), 28, and Vitalis, When Capitalists Collide, 36, 67,
69“71. In the Shubra power project, the strong Egyptian-based Misr group were
investors, ibid., 71; for the ups and downs of this project, see ibid., 70“71, 75.
On the rivalry between the banking interests in this group and in So¬na, see
Brion, ˜˜Le Role de la So¬na,™™ 220; see also Ranieri, Dannie Heineman, 164“65.
In China, for example, in the French concessions, there were French free
standing electrical companies. See BEAM, Combines, 182; C. Yun, ˜˜A
Statistical Investigation of Electric Power Plants in China, 1932,™™ Transactions
of the World Power Conference, Sectional Meeting, Scandinavia, 1933
(Stockholm: Svenska Nationalkommitten for Varldskraftkonferenser, 1934),
´ ¨ ¨
´ lectri¬cation Outre-mer, passim.
II, 532; and Barjot, et al., L™E
See Garcke, 1928“1929.
See comments of Robert M. Kindersley, ˜˜British Foreign Investments in
1929,™™ Economic Journal 41 (Sept. 1931), 381.
Ibid., 378.
Kynaston, City of London, III, 144, dealing with Norman™s views in
November 1925.
See Hannah, Electricity Before Nationalisation, Ch. 4, on the 1926 legislation
and the plans to reform power generation and distribution.
Wilkins, History . . . 1914“1945, 176“77; Kynaston, City of London, III, 73.
Higginson & Co. had been established in London in 1906. See notes to
Chapter 3.
Wilkins, History . . . 1914“1945, Ch. 3“5, deal with this in detail.
Ibid., 206, 732n98.
Ibid., 205“6.
Garcke, 1928“1929, 1603.
Notes to Chapter 4, Pages 159“159 391

152. On the Sudan Light and Power board, the Calcutta Electric Supply Corporation,
and Meston, see Garcke 1928“1929, 1456, 1576; Dictionary of National
Biography, 1941“1950, 587“88; and Quigley, Anglo-American Establishment,
79“80, 113, 183“85. In 1928“1929, Lord Meston not only was on the boards of
Sudan Light and Power and Calcutta Electric Supply, but also was a director of
English Electric Co. Ltd., Power and Traction Finance Co. Ltd., Greater London
and Counties Trust Ltd., and Perak River Hydro-Electric Power Co. Ltd.,
Garcke, 1928“1929, 1779. Pybus, while he was still on the board of English
Electric, joined the board of Phoenix Insurance Company in 1927. He was
brie¬‚y British Minister of Transport, 1929“1933. He would follow Sir
Clarendon Hyde as chairman of Phoenix Insurance, holding that position from
1933 to 1935; he ˜˜was created a baronet™™ in 1934 and became Sir John Pybus.
Hyde, his predecessor on the Phoenix board, who had personally chosen Pybus
as his successor, had had long experience with S. Pearson & Son and had special
interests in the electrical industry. On Pybus™s lack of success in English Electric
and its sale to Edmundson™s, see Hannah, Electricity Before Nationalisation,
241. On Pybus and Hyde, see Clive Trebilcock, Phoenix Assurance and the
Development of British Insurance, Volume II: The Era of the Insurance Giants,
1870“1984 (Cambridge: Cambridge University Press, 1998), 518“20, 525“26;
New York Times, Oct. 24, 1935 (obituary for Pybus); and R. P. T. Davenport-
Hines, ˜˜Sir Percy John Pybus,™™ in Dictionary of Business Biography, IV,
783“85. Davenport-Hines, Dudley Docker, 65, describes Hyde as a partner in
S. Pearson & Sons in 1909. The connections between Hyde and S. Pearson &
Son went back much earlier. See Spender, Weetman Pearson, 26, 50, 95, 224.
153. Davenport-Hines, ˜˜Sir Percy John Pybus,™™ 784. For the competition between
Dudley Docker™s Metropolitan Vickers (to be merged into Associated
Electrical Industries during 1928“1929), Pybus™s English Electric, and the
Empain group in Egypt in 1929, see Vitalis, When Capitalists Collide, 67“76.
Vitalis includes nothing on So¬na™s role, but Davenport-Hines, Dudley
Docker, 208“11, makes it clear that Docker was working closely with
Heineman of So¬na. Vitalis notes that the Empain group, which supplied
Cairo with much of its electric power, along with the group™s local allies,
favored the Shubra site in northern Cairo, which was the plan that ultimately
triumphed. There was a rival Delta scheme, put forth by English Electric and
Siemens. English Electric, readers will recall, had in 1919 acquired a key
Siemens plant in England; but our guess is that this related to Siemens™s new
branch in Egypt and its hope to export from Germany. On Siemens™s 1928
branch, see Vitalis, When Capitalists Collide, 237“238n9. The third plan was
that of Docker and So¬na, and it involved a dam at Aswan. According to
Davenport-Hines, and con¬rmed by Ranieri, Docker ˜˜fronted for So¬na™™ in
the Egyptian transactions. Docker™s company, Electric and Railway Finance
Corporation (Elra¬n), in which So¬na had an interest, in the mid-1920s had
produced a hydroelectric scheme in relationship to the Aswan Dam. For details
and Docker™s plans beyond the Aswan Dam, see Davenport-Hines, Dudley
Docker, 206“11, and Ranieri, Dannie Heineman, 171“76.
154. On May, see Wilkins, History . . . 1914“1945, 39“40, 777n56, and Dictionary
of Business Biography, III, 203“6. On E. H. Lever, Directory of Directors,
Notes to Chapter 4, Pages 159“160

1926, 911. Lever was a director of the Power and Traction Finance Co.
(Poland) Ltd. and British and Foreign Utilities Development Corp.
Makoto Kishida, presentation to the Business History group, Kobe, Japan,
Nov. 20, 2005; on this loan, see also Stock Exchange Year-Book, 1930, 1030,
which says nothing about Prudential™s role.
Ioanna Pepelasis Minoglou, ˜˜Between Informal Networks and Formal
Contracts: International Investment in Greece During the 1920s,™™ Business
History, 44 (April 2002), 52. Minutes of League of Nations, Mandate
Commission, June 15, 1928. On Palestine Electric (http://domino.un.org/
accessed Aug. 11, 2005)
V. Watlington to W. J. Sainsbury (Whitehall Trust), May 6, 1929, Box B14, S.
Pearson & Son Ltd. Papers; we are indebted to Lisa Bud-Frierman (Sept. 23,
2003) for her notes on this letter. Vernon Watlington was at this time ˜˜joint-
manufacturing director™™ of English Electric.
On Hong Kong Electric, see Garcke, 1928“1929; on Beith and Pearce, see Frank
H. H. King, The History of the Hongkong and Shanghai Banking Corporation
(title varies), 4 vol. (Cambridge: Cambridge University Press, 1991“1997), IV,
30“31, and Austin Coates, A Mountain of Light (Hong Kong: Heinemann,
1977), esp. 200“1. From 1900 to 1935, Gibb, Livingston & Co. supplied the
chairmen for Hong Kong Electric. Jardine Matheson was key within the
company. We debated at great length whether Hong Kong Electric should be
considered a ˜˜British direct investment abroad.™™ The argument for including it
was the domination by trading companies with British headquarters. (Geoffrey
Jones insists in his Merchants to Multinationals: British Trading Companies in
the Nineteenth and Twentieth Centuries [Oxford: Oxford University Press,
2000] that the overall direction of Jardine Matheson in 1929 came from the
family in Scotland.) The argument for excluding it is that it appears to have
been owned and controlled by interests resident in Hong Kong (and we deal
with residence not nationality in de¬ning foreign direct investment). We have
been greatly assisted in our considerations by Leo Goodstadt and Jones. On
Table 1.4, we made the decision that because there was no U.K. head of¬ce and
the operations were run by British residents in Hong Kong, under our de¬nitions
Hong Kong Electric should not be considered a foreign direct investment.
R. P. T. Davenport-Hines and Geoffrey Jones, eds., British Business in Asia Since
1860 (Cambridge: Cambridge University Press, 1989), 10, argued that the
separation between the company registered in the United Kingdom and that
registered abroad (speci¬cally in Hong Kong) was arti¬cial. They write that
locally registered companies, established by locally resident British business
interests, were ˜˜scarcely to be differentiated™™ from free standing companies
registered in the United Kingdom. In regard to the clusters surrounding some of
them, we agree.
We have not seen a list of such loans. We have found information on these loans
by reading prospectuses, directories, and learning of them from miscellaneous
other sources: New York Times, March 9, 1925 (Toho Electric); Garcke, 1928“
1929, 1456 (Sudan Light); Pepelasis Minoglou, ˜˜Between Informal Networks,™™
52 (General Hellenic); Garcke, 1928“1929, 1602“3 (Perak River Hydro-Electric
Notes to Chapter 4, Pages 160“163 393

Power Co.); Minutes of League of Nations, Mandate Commission, June 15,
1928 (Palestine Electric); and New York Times, May 14, 1928 (Hungarian
Trans-Danubian). The Hungarian Trans-Danubian ¬rm ¬nanced a Hungarian
state-owned power plant that provided power to Budapest. Coopersmith,
˜˜When Worlds Collide,™™ 29.
Barjot and Morsel, ˜˜Introduction,™™ 13.
The pre-1914 French investments in Spanish electri¬cation appear to have
come to an end. See Chapter 3. However, Paribas was involved with the
Belgian So¬na in Electrobel (see later in this chapter).
´ `´
Samir Saul, ˜˜L™Electri¬cation du Maroc a l™Epoque du Protectorat,™™ in Barjot,
et al., eds., L™Electri¬cation Outre-mer, 491“512.
Barjot and Morsel, ˜˜Introduction,™™ 13.
Saul, ˜˜L™Electri¬cation du Maroc,™™ 497“98, and Handbook on the History of
European Banks, 247“48, 251.
As another example, there was the French Durand group in Madagascar. See
Catharine Vuillermot, Pierre-Marie Durand et l™Energie Industrielle (Paris:
CNRS, 2001), 98, and Catharine Vuillermot, ˜˜Le Groupe Durand: Une
Multinationale Francaise de la Distribution de l™Electricite (dans la Premiere
¸ ´ ´
Moitie du XXe Siecle)?™™ in Hubert Bonin, et al., Transnational Companies
´ `
(19th “20th Centuries) (Paris: PLAGE, [2002]), 372.
For context, see Kurgan-Van Hentenryk, ˜˜Finance and Financiers in Belgium,
1880“1940,™™ 324.
Ibid.; Barjot and Morsel, ˜˜Introduction,™™ 7. On Electrobel and Banque de
Bruxelles, see Van der Wee and Verbreyt, Generale Bank, 195. On Electrobel™s
relationship with So¬na, Ranieri, Dannie Heineman, 164“69. Societe ´´
´ lectricite et Traction, Brussels, according to the Suez Group website
d™E ´
became Traction et Electricite in 1929 (known as Tractionel and formally
renamed that in 1981). See Suez Group website (http://www.suez.com/,
accessed Sept. 26, 2007), for the complicated chronology. According to ibid.,
Electrobel (Compagnie Generale d™Entreprises Electriques et Industrielles) was
formed in 1929 as a merger of three Belgian companies: Societe Generale Belge
´´ ´ ´
´ lectriques (SGB), Compagnie Generale pour l™Eclairage et le
d™Entreprises E ´´
Chauffage par le Gaz, and Societe Generale des Chemins de Fer Economiques.
´´ ´ ´
Electrobel should not be confused with Electrabel, which had different Belgian
origins and was not organized until 1990, although its predecessor companies
went back to 1905. In 1986, Tractabel was formed, a merger between
Tractionel and Electrobel.
Kurgan-Van Hentenryk, ˜˜Finance and Financiers in Belgium,™™ 326; see also
Ranieri, Dannie Heineman, 164“69.
Eric Bussiere, ˜˜The Interests of the Banque de l™Union Parisienne in Czechoslo-
vakia, Hungary, and the Balkans,™™ in Alice Teichova and P. L. Cottrell, eds.,
International Business and Central Europe, 1918“1939 (Leicester, England:
Leicester University Press, 1983), 409“10.
Time Magazine, Feb. 17, 1930, and June 16, 1930, is the ¬rst source; the second
source is Brion, ˜˜Le Role de la So¬na,™™ 231; Moody™s Manual (Utilities) 1930,
2359, gives the Belgian registration of Europel. On Europel, see Luciano
Segreto, ˜˜Gli Assetti Proprietari,™™ in Storia dell™ Industria Elettrica in Italia, III
Notes to Chapter 4, Pages 163“164

(Rome-Bari: Laterza, 1993), 130, which describes it as formed in Brussels at the
initiative of CIBEE (a Volpi company). Segreto notes the involvements of So¬na,
Compagnie Financiere et Industrielle de Belgique (Finabel), Compagnie
Generale d™Entreprises Electriques et Industrielles, Brussels (Electrobel), Credit
Suisse, Elektrobank, the Banque Francaise et Italienne pour l™Amerique du Sud
¸ ´
(BFI), and the Paris branch of the House of Morgan. For more on Europel, see
New York Times, July 18, 1929, which adds that Banca Commerciale Italiana
(BCI) was also a participant in this ¬rm™s foundation. For the connections
between So¬na and Volpi, see Davenport-Hines, Dudley Docker, 204“5. The
So¬na, Annual Report 1929, 22“23, describes Europel as constituted by CIBEE
and Elektrobank and acquiring interests in Italy, Spain, and France. Volpi
(1877“1974) had long involvements in electri¬cation, going back before World
War I (he founded Societa Adriatica di Elettricita [SADE] in 1905); on his
` `
participation in the 1913 setting up of Societa Elettrica Coloniale Italiana, see
Luciano Segreto, ˜˜Electi¬er un Reve,™™ in Dominique Barjot, et al., eds.,
´ lectri¬cation Outre-mer de la Fin du XIXe Siecle aux Premieres
L™E ` `
Decolonisations (Paris: EDF [2002]), 237.
Lanthier, ˜˜Les Constructions Electriques en France™™; Brion, ˜˜Le Role de la
So¬na,™™ 230; and So¬na, Annual Report 1929, 19“20.
Ulf Olsson, Furthering a Fortune (Stockholm: Ekerlids Forlag, 2001), 98“101.
Ranald C. Michie, The London Stock Exchange (Oxford: Oxford University
Press, 1999), 261. For background on PSC and its founders, see Hannah,
Electri¬cation Before Nationalisation, 81 and Hughes, Networks of Power,
The initial group of founders included Cammell Laird & Co. Ltd., Sir William
Arrol & Co. Ltd., English Electric Co., John Brown & Co., and North British
Locomotive Co. The last of these companies was no longer included by 1930.
See Stock Exchange Year Book 1925, 2871, and ibid. 1930, 3168.
V. Watlington to W. J. Sainsbury, May 6, 1929, Pearson Papers, Box B14. We
thank Lisa Bud-Frierman, e-mail of Sept. 22, 2003, for this reference. See also
Stock Exchange Year Book 1925, 2871, and ibid., 1930, 3168.
Pantelakis, Electri¬cation of Greece, 213“30; and Pepelasis Minoglou,
˜˜Between Informal Networks,™™ 50“52.
Pepelais Minoglou, ˜˜Between Informal Networks,™™ 50“52, and data in
S. Pearson & Son Papers. Pantelakis, Electri¬cation of Greece, 218“30,
suggests that in the negotiations the British government hoped Greece would
buy British coal and, accordingly, had vetoed a plan for a hydroelectric plant;
British manufacturers had no special expertise in equipment for hydroelectric
The names are very confusing: Compagnie Hellenique d™Electricite was not the
´ ´
same company as Societe Generale Hellenique.
´´ ´ ´ ´
The ˜˜Austrian™™ group consisted of (1) the Anglo-Austrian Bank Ltd., a British
bank, (2) Castiglioni Bank, (3) ELIN Societe Anonyme pour l™Industrie
´ ´
Electrique, Vienna, a manufacturer, (4) Etablissement Autrichien pour la
Circulation par Chemin de Fer Wien, and (5) Wiener Bank-Verein, Vienna.
Others in the syndicate included (6) the Nederlandischen Standard Bank,
Amsterdam, (7) Societe d™Electricite et Traction, Brussels, and (8) several
´´ ´
Notes to Chapter 4, Pages 164“165 395

Greek banks. On the ChdE ¬nancing, see Pantelakis, Electri¬cation of Greece,
254“55. On the Anglo-Austrian Bank, see Geoffrey Jones, British Multina-
tional Banking 1830“1990 (Oxford: Oxford University Press, 1993), 228“31,
and Herbert Matis, ˜˜Disintegration and Multi-national Enterprises in Central
Europe,™™ in Alice Teichova and P. L. Cottrell, eds., International Business and
Central Europe, 1918“1939 (New York: St. Martin™s Press, 1983), 89; on
ELIN, also known as Elin Aktiengesellschaft fur Elektrische Industrie, see
ibid., 84; on the Belgian, Swiss, and U.S. investments in Wiener Bank-Verein,
see P. L. Cottrell, ˜˜Aspects of Western Equity Investment in the Banking
Systems of East Central Europe,™™ in Teichova and Cottrell, eds, International
Business, 338; for that bank™s outward international involvements, see
Teichova and Cottrell, eds., International Business, passim. Societe ´´
d™Electricite et Traction, Brussels, was the predecessor of Tractionel, according
to the Suez website, as cited above.
Leopold Wellisz, Foreign Capital in Poland (London: Allen & Unwin, 1938),
113“16; see also Stock Exchange Year-Book, 1925, 3168.
Based on data in S. Pearson & Son Papers.
Based on Theodore J. Grayson, Investment Trusts (New York: John Wiley,
1928), 80. Are these ¬gures to be trusted? Does a look at the investment
portfolio exclude foreign direct investment? We do not know. On PTFC, see
also R. P. T. Davenport-Hines, ˜˜Sir Percy John Pybus,™™ in Dictionary of
Business Biography, IV, 784.
The best study of Whitehall Electric in Chile is Jones and Greenhill, ˜˜Public
Utility Companies,™™ 94“114.
American & Foreign Power Co., Annual Report 1928, 4, for a description of
the properties. The contract for the purchase was made in October 1928, and
the properties passed to the American company on January 1, 1929.
Rippy, British Investments in Latin America, 103, citing the Stock Exchange
Year Book, 1931, 1289; see also Jones and Greenhill, ˜˜Public Utility
Companies,™™ 111, for the same ¬gure, citing The Economist, June 15, 1929,
1374, and June 22, 1929, 1416, but indicating that roughly £1.4 million
needed to be deducted from that sum, covering obligations of the Pearson
Jones and Greenhill, ˜˜Public Utility Companies,™™ 112.
Lord Cowdray died in 1927, but that does not seem to have been the reason
for the sale. Spender, whose book was published in 1930, indicates that Clive
Pearson, Lord Cowdray™s son, was chairman of Whitehall Electric Investments
Ltd., which after the sale was ˜˜pursuing its electrical enterprises in other
regions . . . .™™ Spender, Weetman Pearson, 208.
Rippy, British Investments in Latin America, 243. Stock Exchange Of¬cial
Intelligence, 1928, 1133, indicates that Atlas Light and Power was the
successor to the Cordoba Light, Power, and Traction Co. Ltd., formed in
1908, and then the Argentine Light and Power Co. Ltd., set up in 1923. This
was a typical sequential set of free standing companies, each one raising more
money and adding new properties.
It was short-lived as Atlas Light, but its predecessor went back to 1908. When
Atlas Light sold out, it retained its tramway property in Uruguay, which its
Notes to Chapter 4, Pages 166“167

successor did not sell until 1947; its successor was Atlas Electric and General
Trust Ltd. (the name change was in November 1929). Stock Exchange Of¬cial
Intelligence, 1930, 1098, and Rippy, British Investments in Latin America,
Stock Exchange Year Book, 1930, 1112.
Jones, British Multinational Banking, 243 (on the two banks). The ¬rst of the
banks was founded in 1919, the second in 1920. Prudential Assurance was a
subscriber to the stock of the British Overseas Bank at its formation. Stock
Exchange Year Book, 1930, 1112; Directory of Directories, 1926, 545, 911;
and Stock Exchange Yearbook, 1935, 1988 (for its 1928 Polish investments).
We have put ˜˜perhaps Atlas Light and Power™™ because while it was clearly a
holding company, it evolved from free standing companies and proved short-
lived in its holding company role. Moreover, it could itself be labeled a free
standing company. As pointed out in Chapter 2, the line between certain forms
could be ambiguous.
See 1933 data in the Pearson papers; we have no reason to believe that this
description would not hold for 1928“1929.
See above and Marchildon, ˜˜Montreal Engineering,™™ 397“98.
Armstrong and Nelles, Southern Exposure, 251“52; Marchildon, ˜˜Montreal
Engineering,™™ 398“99. In 1926, International Power acquired in Latin
America (1) Bolivian Power Co. Ltd. (registered in Nova Scotia in 1925)
from Bolivian General Enterprises Ltd., (2) control of the Demerara Electric
Co. Ltd. (operating in British Guiana [Guyana] and incorporated there in 1899
under British law), (3) a company in El Salvador that had been organized in
1890, (4) substantial interest in a company in Monterrey, Mexico, registered
in Canada in 1905, and (5) Venezuelan Power Co., incorporated in Canada in
1925. Mallory, ˜˜Financial Problems,™™ 99“105. Note International Power is
not to be confused with International Paper and Power Co. and its
subsidiaries, nor is it to be mixed up with International Power Securities, an
entirely different company; likewise, International Holding and Investment
Co. was a different ¬rm.
Roberts, Schroders, 210; Garcke, 1928“1929, 1327; Armstrong and Nelles,
Southern Exposure, 261, 266, 347n50 (on the planned pyramided arrange-
ments with Loewenstein™s International Holding and Investment Company);
Economist, Aug. 10, 1929, 282; Hugh Bullock, The Story of Investment
Companies (New York: Columbia University Press, 1959), 122“23, 217“18,
221“23 (on International Holding and Investment Company, formed in 1927,
and Hydro-Electric Securities), 123 (tax status). Many of the holding
companies bore similar titles; thus, in 1929 the Canadian Hydro-Electric
Corp. was part of the International Hydro-Electric System, which in turn had
at its pinnacle, International Paper and Power Company. Heinrich, ˜˜Product
Diversi¬cation,™™ 491. These were separate from the Loewenstein ¬nancial
edi¬ces, which included International Holding and Investment Co., as well as
Hydro-Electric Securities. When in 1926 Loewenstein™s Hydro-Electric
Securities was established, Malcolm Hubbard (a London-based director of
Brazilian Traction) described it as ˜˜water 90 p.c.; electricity 10 p.c.; no
security at all.™™ Ranieri, Dannie Heineman, 153n2. International Holding and
Notes to Chapter 4, Pages 167“169 397

Investment Co., whose name was changed in 1937 to International Holdings
Ltd., came to have the same management as Hydro-Electric Securities.
Bullock, Story of Investment Companies, 122“23. In 1926, Loewenstein tried
in vain to use Hydro-Electric Securities in his attempt to take over Sidro, as
well as Brazilian Traction, Barcelona Traction, and the Mexican companies
(see the discussion earlier in this chapter). On Loewenstein, Hydro-Electric
Securities, International Holding and Investment, and Barings, see Kynaston,
City of London, III, 145“46.
Bullock, Story of Investment Companies, 122.
Garcke, 1928“1929, 1327; Schroter, ˜˜Globalization and Reliability,™™ 116
(White™s presidency). Do not confuse this company with International Power
Co.; it was separate.
Geoffrey Jones, Merchants to Multinationals: British Trading Companies in
the Nineteenth and Twentieth Centuries (Oxford: Oxford University Press,
2000), 104; the White ¬rm was ˜˜British™™ for the years 1917“1929. When in
1928 White became president of International Light & Power, his ¬rm was
still under U.K. shareholders™ control, but it was soon to free itself of the Booth
Segreto, ˜˜Du ˜Made in Germany,™ ™™ 357.
For the Canadian ˜˜investment companies,™™ see Bullock, Story of Investment
Companies, 118“25.
Armstrong and Nelles, Monopoly™s Moment, 300. They suggest that the Power
Corporation of Canada bore some resemblance to the ˜˜much looser, less
structured™™ Royal Securities and its subsidiary Montreal Engineering. It was
actually modeled after the U.S. ¬rm Stone & Webster. Bullock, Story of
Investment Companies, 119.
Bullock, Story of Investment Companies, 119, writes that FPSC did not
consider itself an ˜˜investment trust;™™ see also Garcke, 1928“1929, 1312“13;
Roger Despres, who was key in the French Durand group, was on the board of
FPSC at the end of the 1920s, and this company™s holdings overlapped
with those of the Durand group. See also Vuillermot, ˜˜Groupe Durand,™™
372. Remember Nesbitt, Thomson was headquartered in French-speaking
Montreal, Canada.
Wilkins, History . . . 1914“1945, 84, 206, 210.
Moody™s Manual (Utilities) 1930, xxi. William J. Hausman, ˜˜The Historical
Antecedents of Restructuring: Mergers and Concentration in the U.S. Electric
Utility Industry, 1879“1935,™™ unpublished paper prepared for the American
Public Power Association, March 4, 1997, 8, gives urban and nonrural
dwellings with electrical service at just over 40 percent in 1920 and almost 80
percent by 1930.
The best material on U.S. business abroad in this sector for the 1920s is
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment.™™ We have drawn
heavily on this article. The importance of U.S. foreign direct investments in
public utilities in the 1920s is emphasized by Robert E. Lipsey, ˜˜Changing
Patterns of International Investment in and by the United States,™™ in Martin
Feldstein, ed., The United States in the World Economy (Chicago: University
of Chicago Press, 1988), 481. The foreign investments in public utilities
Notes to Chapter 4, Pages 170“171

included telephones and other utilities, but within this sector the largest
involvements were in electric utilities.
See Lewis, America™s Stake, 666, for her frustrations in trying to separate
foreign portfolio and foreign direct investments.
For GE, see Wilkins, Maturing of Multinational Enterprise. To a large extent,
the expanded post“World War I network of GE built on its prewar
associations. On the latter, see Chapter 3 of the present book and Mira
Wilkins, The Emergence of Multinational Enterprise: American Business
Abroad from the Colonial Era to 1914 (Cambridge, MA: Harvard University
Press, 1970), 94“95. On the Westinghouse revival, see New York Times, June 11,
1930, which indicates that in the years 1929“1930 Westinghouse obtained
minority interests in British, French, and Italian manufacturing companies and
acquired a major plant in Norway. See also Southard, American Industry in
Europe, 19“35.
There is a large literature on how much ˜˜competition™™ there was among
manufacturers in this industry by the late 1920s. One 1927 report concluded
that ˜˜the free play of competition between ¬rm and ¬rm belongs now to
history.™™ BEAM, Combines, 280. If the emphasis is on the ˜˜free play™™ or on
perfect competition, this is absolutely correct. On the other hand, U.S.
participants were highly competitive in their international business. Wilkins,
Maturing of Multinational Enterprise, 69.
See Wilkins, Maturing of Multinational Enterprise, 65“69; Mira Wilkins,
interviews with W. Rogers Herod, Feb. 24 and March 11, 1964, Wilkins Files,
Miami; Southard, American Industry in Europe, 17“36.
Mira Wilkins, ˜˜American-Japanese Direct Foreign Investment Relationships,
1930“1952,™™ Business History Review, 56 (Winter 1982), 502. Siemens also
made direct investments in Japanese electrical manufacturing. In 1923, Fuji
Electric Co. was established as a joint venture of Furukawa Electric Industry
and Siemens (which had a 30 percent interest). Masari Udawaga, ˜˜Business
Management and Foreign-Af¬liated Companies in Japan before World War
II,™™ in Takeshi Yuzawa and Masaru Udagawa, Foreign Business in Japan
Before World War II (Tokyo: University of Tokyo Press, 1990), 10, 15“16.
Derek F. Channon, The Strategy and Structure of British Enterprise (Boston:
Graduate School of Business, Harvard University, 1973), 134; Southard,
American Industry in Europe, 20“23; in 1930, on the expiration of
Westinghouse Electric™s licensing agreement with Metropolitan Vickers,
Westinghouse Electric announced that it had entered into a patent agreement
with English Electric and that it would obtain a minority interest in the latter.
On English Electric and Utilities Power and Light Corporation, Hannah,
Electri¬cation Before Nationalisation, 229, 241. As noted earlier, the old
Siemens Brothers, which had become British-owned after the war, still existed;
in 1929, the German Siemens had reacquired an 18 percent equity interest in
this British ¬rm that continued to use the Siemens name. Harm Schroter, ˜˜The
German Question, the Uni¬cation of Europe, and European Market Strategies
of Germany™s Chemical and Electrical Industries, 1900“1992,™™ in Business
History Review 67 (Autumn 1993), 385; see also Siemens, History of the
House of Siemens, II, 204.
Notes to Chapter 4, Pages 171“175 399

213. Southard, American Industry in Europe, 28“29.
214. Schuker, American ˜˜Reparations™™ to Germany, 1919“33, 47, 49.
215. Wilkins, Maturing of Multinational Enterprise, 146“47; in this book, Wilkins
did not make the comparisons. Research by the contributors to the present
volume and others make this statement incontrovertible. For GE™s role in the
Swedish ASEA, for example, see [Jan Glete], Electrifying Experience: A Brief
Account of the First Century of the ASEA Group of Sweden, 1883“1983
(Vasteras, Sweden: ASEA, 1983), 32“33.
216. The encouragement might be through contracting, as was evident in the case of
Siemens, for instance, as well as through foreign investments. The technical
services of¬ces of Siemens and AEG provided information on equipment
installations that did not involve any foreign investments in the utility.
217. For the spin-off see Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™
372; Wilkins, Maturing of Multinational Enterprise, 131.
218. Sometimes, these interests were direct and sometimes were through extended
manufacturers™ satellites (see Chapter 2).
219. Wilkins, Maturing of Multinational Enterprise, 131. In 1928, Intercontinents
Power established Compan±a Sudamericana de Electricidad (SUDAM), which
in connection with Motor-Columbus became active in the Northern Provinces
of Argentina. On SUDAM, Annual Memories of the Ministerio de Justicia e
Instruccion Publica, Memoria Ano 1928 (Buenos Aires, Talleres Gra¬cos de la
´ ´
´ ˜
Penitenciaria Nacional, 1929), I, 129 (item 66 for the authorization of
SUDAM in Argentina; we are indebted to Andrea Lluch for this reference), and
Andrea Lluch and Laura Sanchez, De Movimiento Popular a Empresa El
Cooperativisismo Electrico en La Pampa (Santa Rosa, Argentina: Fondo
Editorial Pampeano, [2001]), 17“18. There were numerous connections
between manufacturers and holding companies and their subsidiaries. Thus,
GE was said to be associated with International Power Securities Corporation
(and with Union d™Electricite “ see later in this chapter), while Westinghouse
was linked with the American European Utilities Corporation. BEAM,
Combines, 57“58 and Frederic Marty, ˜˜Les Grands Projets de la Filiere
´´ `
´ lectrique dans l™Entre-Deux-Guerres,™™ in Barjot, Morsel, and Coeure, eds.,
E ´
Strategies, Gestion, Management, 109. GE™s wholly owned subsidiary for
international business, International General Electric Co., had scattered
investments in public utilities. Based on data collected by William Hausman,
January 2006. Wilkins, Maturing of Multinational Enterprise, 65“69 (on IGE).
220. The best source on these banks and their participation in lending is U.S.
Congress, Senate, Committee on Banking and Currency, Stock Exchange
Practices, Hearings, 72nd Cong. 1st sess. (1932“1933), 7 parts in 6 vol; 72nd
and 73rd Cong. (1933“1934), 2 parts in 9 vol. (known as Pecora Hearings).
221. Based on data in Stock Exchange Year-Book 1930 on each Japanese
222. Ron Chernow, The House of Morgan (New York: Atlantic Monthly Press,
1990), 336“37, and Takeo Kikkawa, Nihon Denryoku no Hatten to´
Matsunaga Yasuzaemon [The Development of Japanese Electric Power
Industry and Yasuzaemon Matsunaga] (Nagoya, Japan: Nagoya University
Press, 1995), 146“49.
Notes to Chapter 4, Pages 175“176

223. On the Tokio Electric Light bond issue of 1925 that matured in 1928, see
Table 4.2. On the new issue, see New York Times, June 7, 1928.
224. See Moody™s Manual (Utilities) and Stock Exchange Year Book, various years.
225. U.S. Department of Commerce, Bureau of Foreign and Domestic Commerce, A
New Estimate of American Investments Abroad (Washington, DC, 1931), 20
(U.S. FDI in Japan), 21.
226. The investments in Manchuria were in connection with the South Manchuria
railroad. Korea was of course a colony of Japan in this period.
227. The date for Brown Brothers Harriman & Co. comes from Edwin J. Perkins,
Financing Anglo-American Trade: The House of Brown, 1800“1880
(Cambridge, MA: Harvard University Press, 1975), 82.
228. Based on Lewis, America™s Stake, 638“40; in ¬rst place was Canada: Lewis
shows the face value of Canadian corporate borrowings (1915“1929) to equal
$896.8 million (and for 1919“1929 to come to $842.4 billion). German
corporate borrowings, 1925“1929, were $712.8 million, clearly in second place
after Canada (there were none listed for 1915“1925). The total for Japan, 1923“
1928, was $181.8 million; and in fourth place, 1924“1929, Italy $165.4 million.
Other sources (including the one for Japan given earlier in the text), based on
different measures (and covering different dates), give different numbers.
Segreto, Milan Paper, for example, citing Electrical World, Oct. 6, 1928, 710,
indicated that ˜˜bond loans contracted by [European] electric companies in the
United States between 1919 and 1927™™ totaled $289 million, of which $149
million went to German ¬rms, $78 million to Italian enterprises.™™ The
remainder went to Spanish ($25 million), British ($12 million), Austrian ($9
million), Norwegian ($6 million), Polish ($4 million), French ($4 million), and
Danish ($2 million) companies. Segreto™s list omits Canada and Japan. When we
went to the original list in Electrical World, Oct. 6, 1928, 710, we found it put
Canada ($192 million) in ¬rst place. It included Japan ($101 million) in fourth
place. In third place, it had Cuba ($110 million). Further research indicates that
this third-place Cuban ¬gure covered telephones and docks, as well as electric
utilities and is suspect in many ways (the same ¬gure is given by others with
different de¬nitions). Moreover, all the investments in Cuban electric utilities
were direct investments.
229. See Moody™s Manual (Utilities) 1930, 1673“75. On the speci¬cs of the bond
issues of Societa Generale Italiana Edison di Elettricita, see ibid., 1674.
` `
230. Charles R. Geisst, Entrepot Capitalism (New York: Praeger, 1992), 134, 140.
231. The ¬gures from Electrical World, see several notes above, cannot be
legitimately combined with the ones that Cleona Lewis provides.
232. On German issues, see Table 4.2; Lewis, America™s Stake, 408; C. R. S. Harris,
Germany™s Foreign Indebtedness (London: Oxford University Press, 1935),
116“18; and U.S. Senate, Committee on Finance, Sale of Foreign Bonds, 72nd
Cong., 1st sess. (1932), esp. 107, 108, 168“73, 179“81. Moody™s Manual
(Utilities) provides data on the borrowings of individual German companies.
233. Harold van B. Cleveland and Thomas F. Huertas, Citibank 1812“1970
(Cambridge, MA: Harvard University Press, 1985), 150; for state ownership,
see BEAM, Combines, 60; for the series of RWE bond issues, see U.S. Senate,
Committee on Finance, Sale of Foreign Bonds, 107 (1925 issue: $10 million),
Notes to Chapter 4, Pages 176“177 401

108 (1927 and 1928 issues: $15 million and $20 million, respectively), 109
(1930 and 1931 issues: $20 million and $7.5 million), 168“73, 179“81. (The
1928 issue prospectus for the $20 million consolidated mortgage gold bonds,
6 percent, due August 1, 1953, indicated that ˜˜the various municipalities and
provinces served, together with the State of Prussia and the German Empire
[sic], own a substantial majority of the [Rhine-Westphalia Electric Power]
corporation™s stock™™; associated with the 1928 bond issue there were stock
purchase rights for ˜˜American shares.™™) In the 1920s, RWE had the largest
installed capacity of any power company in Germany. Hughes, Networks of
Power, 408“23.
Lewis, America™s Stake, 669“72.
For example, Duke Price Power, see Table 4.2.
Wilkins, Maturing of Multinational Enterprise, 132 (list of nine major U.S.
public utilities operating in Canada in 1929 and their operations). With the
date of U.S. formation in parentheses, the seven supplying electric power in
Canada (two provided only gas) were: Associated Gas and Electric Co. (1906),
Central Public Service Co. (1925), Cities Service Co. (1910), International
Paper and Power Co. (1928), International Utilities Corporation (1924),
Niagara-Hudson Power Corp. (1929), and North American Gas and Electric
Co.(1928). By ˜˜outside ¬nancing,™™ we mean they went to U.S. capital markets,
issuing bonds and/or stock for the Canadian operation (or for the general
business and thus used pooled funds for their Canadian operations).
Grayson, Investment Trusts, 294 (for Canadian investments of Metropolitan
Life Insurance Co.), 295 (Prudential Insurance Company of America), 297
(Equitable Life).
Southard, American Industry in Europe, 11“12, 18, 39“41. According to
Leopold Wellisz, a comprehensive 1929 plan was presented by Harriman &
Co. and turned down by the Polish government ˜˜as it was considered that the
terms demanded by Messrs. Harriman & Co. were too onerous.™™ Wellisz,
Foreign Capital in Poland, 245“47 (on Harriman™s 1929 plan).
As cited in Southard, American Industry in Europe, 41.
In 1921, Paul Warburg (in New York) in cooperation with his brother at
M. M. Warburg & Co., Hamburg, and with the involvement of a large number
of American and European banks, formed International Acceptance Bank
(IAB) to help in the ¬nancing of postwar Germany. In 1924, IAB organized
American & Continental Corp. (ACC) to provide assistance to German
borrowers. Participating in the later were the Deutsche Bank, M. M. Warburg,
So¬na, Skandinaviska Kreditaktiebolaget, Svenska Handelsbanken, and
Osterreichische Creditanstalt fur Handel & Gewerbe, as well as some other
European banks. So¬na apparently represented American & Continental
Corp. in Europe. Wilkins, History . . . 1914“1945, 119, 199, 281, and Ranieri,
Dannie Heineman, 132“33, 141“42, 420 (for ACC and So¬na).
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 379.
The best material on Aldred is in ibid., 368, 378“80. The Aldred ˜˜group™™ also
embraced the Aldred Investment Trust (set up in Massachusetts in 1927),
which held stock in International Power Securities Corporation, the Italian
Edison Company, and Societa Generale Elettrica dell™ Adamello.
Notes to Chapter 4, Pages 177“179

243. Ibid., 377“78, 388“89. For Stone & Webster™s domestic activities in the 1920s,
see Hughes, Networks of Power, 390“92. See Chapter 3 , herein, for its early
244. Thus, Robert Fleming and Robert Benson companies as well as other British
investment trusts, individual foreign investors, and a range of foreign ¬nancial
institutions made inward foreign ¬nancial investments in these holding
companies and their operating companies. Wilkins, History . . . 1914“1945,
206, for these and other inward investments in U.S. utilities. In certain cases,
the inward investments were quite substantial; for example, the Canadian ¬rm
Sun Life Assurance Company was a signi¬cant investor in Insull properties.
245. Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 370“71, 382“83;
Christopher Kobrak, Banking on Global Markets: Deutsche Bank and the
United States, 1870 to the Present (Cambridge: Cambridge University Press,
forthcoming) on Deutsche Bank™s investment. The name Deutsche Bank und
Disconto-Gesellschaft was kept from 1929 to 1937, when use of the title
Deutsche Bank resumed.
246. For the complex patterns, see Mira Wilkins, ˜˜Cosmopolitan Finance in the
1920s: New York™s Emergence as an International Financial Centre,™™ in
Richard Sylla, Richard Tilly, and Gabriel Tortella, eds., The State, the
Financial System, and Economic Modernization: Comparative Historical
Perspectives (Cambridge: Cambridge University Press, 1999), 271“91, and
Wilkins, History . . . 1914“1945, 189“200.
247. Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 368“69, for a list;
also (not in ibid.), Insull™s holding company in 1929 acquired a minority
interest in British Power and Light Corp. Hannah, Electri¬cation Before
Nationalisation, 227“28.
248. In the literature on multinational enterprise, a ˜˜green¬eld™™ operation is one
started afresh by the foreign direct investor.
249. In the summer of 1919, a preliminary agreement was signed to form a holding
company that would buy around one-sixth of the shares of Italian Edison
Company. This Italian holding company would have been controlled half by
Morgan and other U.S. banks and half by the Edison Company. Banca Italiana
di Scoto, involved in the project, collapsed in 1921, which thwarted this
endeavor. Leandro Conte, ˜˜I Prestiti Esteri,™™ in Storia dell™ Industria Elettrica
in Italia, 2 (Rome-Bari: Laterza, 1993), 630“31; Segreto, Giacinto Motta,
250. Dunn, American Foreign Investments,152“53; Moody™s Manual (Utilities)
1924, 1511; Conte, ˜˜I Prestiti Esteri,™™ 636, 691; and Segreto, Giacinoto
Motta, 177“84. The directors of Italian Power included John E. Aldred, A. W.
Burchard (President of International General Electric Co.), Charles A. Cof¬n
(GE), E. P. Royce (Stone & Webster), and Arthur Vining Davis (Aluminum
Company of America). Carlo Orsi of Credito Italiano, Milan, was on the
founding board. After the 1921 recession, the American International
Corporation (AIC) had greatly curtailed its activities and was recapitalized;
Stone & Webster remained af¬liated with it, but the other directors resigned.
AIC continued as an investment house until 1969, when it was merged into
Adams Express Co., a closed-end investment company. Cleveland and
Notes to Chapter 4, Pages 179“180 403

Huertas, Citibank 1812“1970, 368n25. See also Bullock, Story of Investment
Companies, 17, which describes AIC in 1929 as an investment company with
assets of over $60 million, for the most part invested in domestic securities;
Adams Express had acquired control of AIC in 1945.
251. On International Power Securities, see Hausman and Neufeld, ˜˜U.S. Foreign
Direct Investment,™™ 379 and Richard F. Kuisel, Ernest Mercier (Berkeley:
University of California Press, 1967), 8“11 (on Union d™Electricite, which was
formed in 1919, a merger of six suburban Paris electricity producers, and
expanded greatly during the 1920s; it was controlled by the so-called Messine
group. Petsche was president, and Mercier was managing director); BEAM,
Combines, 57, 64, 129 (on Union d™Electricite and its links with Thomson-
Houston, which was, of course, the ˜˜GE company™™ in France). See also
Southard, American Industry in Europe, 38“39; Moody™s Manual (Utilities)
1928, 1090“92; ibid., 1929, 1852“1854; ibid., 1930, 1668“75 (on IPSC); and
ibid., 1930, 1075“76 (on the speci¬cs of the ¬nancing of Union d™Electricite, ´
1= s™™ of 1924, authorized and issued $4 million,
particularly the external gold ˜˜6 2
due 1954, all owned by IPSC); ibid., 1930, 1673 (Societa Generale Italiana
Edison di Elettricita Chernow, House of Morgan, 281 (for Volpi™s relations
with Thomas Lamont and the House of Morgan, vis-a `-vis Italian debts); and
Segreto, ˜˜Gli Assetti Proprietari,™™ 137, 167n73 (IPSC), 137“42 (Italian plans).
In 1925, Alberto Beneduce “ chairman of the new state-controlled Istituto per le
Imprese di Pubblica Utilita a special ¬nancing institute for the Italian electric
sector “ had explored with Volpi the possibility of establishing a new U.S.
holding to issue bonds on the U.S. capital market. For more on the foreign
¬nancing of Italian electric utilities in the interwar period see Mirana Storaci and
Giuseppe Tattara, ˜˜The External Financing of Italian Electric Companies in the
Interwar Years,™™ European Review of Economic History, 2 (1998), 345“75.
252. Moody™s Manual (Utilities) 1928, 1090“92; ibid., 1929, 1852“1854, and
sources cited in the previous note on IPSC.
253. The initial capital of Italian Superpower was divided into common and
preferred stock without voting rights; a special category of shares with voting
rights went 50 percent to BCI and 50 percent to the Americans. It was the
American 50 percent that was acquired by American Superpower in 1929.
Segreto, ˜˜Gli Assetti Proprietari,™™ 136“44; New York Times, June 5, 1929; see
also Moody™s Manual (Utilities) 1930, 635, 1870 (Italian Superpower;
American Superpower); Southard, American Industry in Europe, 38“39
(Italian Superpower); Gianni Toniolo, One Hundred Years, 1894“1994: A
Short History of the Banca Commerciale Italiana (Milan: Banca Commerciale
Italiana, 1994), 51, 131 (Giuseppe Toeplitz); and Wilkins, History . . . 1914“
1945, 196 (Italian Superpower and the complexities of inward/outward U.S.
investments in the 1920s; did Italians or Americans ˜˜control™™ this holding
company?). On the size of assets, December 1929, Bullock, Story of
Investment Companies, 217; the assets of American Superpower in December
1929 put it in fourth place in the United States in the SEC category
˜˜Management Investment-Holding Companies,™™ after Christiana Securities
Co. ($361.5 m), United Corporation ($332.5 m), and Alleghany Corporation
(263.7 m). Ibid., 40 (˜˜investment holding™™), 217 (˜˜management investment
Notes to Chapter 4, Pages 181“184

holding™™). Christiana Securities was a holding company for stocks of
companies controlled by Du Pont interests, while United Corporation and
Alleghany Corporation were both Morgan-created holding companies; the ¬rst
had investments principally in public utilities on the U.S. eastern seaboard and
the second was devoted to U.S. railroad securities. On Christiana, see ibid., 40;
Charles R. Geisst, Wall Street (Oxford: Oxford University Press, 1997),
184“85 (United Corporation and Alleghany Corporation). Hausman and
Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 388n38 (American Superpower
came to be controlled by United Corporation).
Hannah, Electri¬cation Before Nationalisation, 228; Hughes, Networks of
Power, 402.
Hannah, Electri¬cation Before Nationalisation, 228“31. One of the largest,
according to Hannah, 228; the largest, according to Southard, American
Industry in Europe, 18, 36“38, 213“14. The majority-owned subsidiaries
involved in power distribution of the Greater London and Counties Trust as of
1928“1929 are listed in ibid., 213“14. William May of Slaughter and May is
not to be confused with George May of Prudential Assurance.
The shares of Electric Bond and Share were distributed to GE stockholders,
with the shareholder™s approval given December 30, 1924. Mitchell, S. Z.
Mitchell and the Electrical Industry, 132.
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 374.
The statement on GE™s having ˜˜no stock interest™™ in American & Foreign
Power is based on the GE divestment of its holdings in Electric Bond and
Share; it is altogether possible that GE may have had a small stock interest,
directly or indirectly, and that ˜˜no stock interest™™ could be an exaggeration.
The 1929“1930 board list with the identi¬cations is taken from American &
Foreign Power Co., Annual Reports 1927“1930. Chernow, House of Morgan,
289 (Simpson, Thacher & Bartlett), 308 (United Corporation, Sosthenes
Behn). Note that Charles E. Mitchell was not a relative of the father and son
team (S. Z. Mitchell and S.A. Mitchell). On American Gas and Electric, see
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment,™™ 372; on United
Electric Securities, see Chapter 3, herein.
In addition to these direct investments, at year™s end 1929 American & Foreign
Power also had minority holdings in companies with interests in utility
properties in Canada, France, Germany, Italy, and Japan. During 1929, it
disposed of its minority interests in Spain. American & Foreign Power Co.,
Annual Report, 1929, 5 (the annual report merely notes these holdings,
whereas with the foreign direct investments there is a far more extensive
American & Foreign Power, Annual Report 1929, 26 (gross earnings 1928 and
1929). For the importance of American & Foreign Power™s Cuban business,
see its annual reports (which are by far the best source). See also Leland
Hamilton Jenks, Our Cuban Colony (New York: Vanguard Press, 1928), 269
(on the connections between GE, American & Foreign Power and General
Gerardo Machado, who became President of Cuba in 1925), 289“90 (on the
˜˜public utility™™ investments of American & Foreign Power, International
Telephone & Telegraph, and the dock companies).
Notes to Chapter 4, Pages 184“184 405

262. American & Foreign Power Co., Annual Reports 1928“1929; Robert M.
Kindersley, ˜˜British Foreign Investments in 1928,™™ Economic Journal, 40
(June 1930), 177; Marchildon, ˜˜The Montreal Engineering Company,™™ 397;
Southard, American Industry in Europe, 41n3; Rippy, British Investments,
243. On the sale of the S. Pearson & Son interests (Whitehall Electric
Investments), see American & Foreign Power Co., Annual Report 1928, 4, and
Jones and Greenhill, ˜˜Public Utility Companies,™™ 111. The Atlas Light and
Power Co. group of companies in Argentina supplied electric light and power
and street railway service in Cordoba, Tucuman, Santa Fe, and Parana
´ ´ ´ ´.
American & Foreign Power Co., Annual Report 1928, 5. (The 1929 takeover
was reported in the 1928 Annual Report.) On Northern Mexican Power &
Development, the 1919 successor to Mexican Northern Power Co., see
Armstrong and Nelles, Southern Exposure, 253. The other half of Tata Hydro-
Electric Agencies Ltd. was owned ˜˜by prominent citizens of India.™™ This Tata
company supervised the operations of a group of hydroelectric companies; the
group produced and transmitted power and sold that power to the local
electric light and power and street railway company in Bombay, as well as to
cotton mills and other large power users. American & Foreign Power Co.,
Annual Report 1929, 5. The process of changing nationalities was not unique.
Earlier the British had replaced the Germans in Chile. Whitehall Electric™s
expansion in Chile, as the reader will recall, was based on what had been
before World War I German properties. In the ¬rst decade of the twentieth
century (see Chapter 3), there had been German interests in Mexico, which
Canadian ones had replaced.
263. American & Foreign Power Co., Annual Report 1928, 4.
264. In addition, in 1929 it acquired control of North State Power Company Ltd. In
Mexico. Ibid., 1928, 5, 9 (number of communities in 1928). Ibid., 1929, 4,
11“12, 15 (number of communities in 1929).
265. American & Foreign Power Co., Annual Report 1929, 9“10 (expansion in
Brazil), 15 (communities in Brazil).
266. Ibid., 1929, 8. The ANSEC group was so named: A: Cia. de Electricidad de
Andes, N: Cia. de Electricidad del Norte Argentino, S: Cia de Electricidad del
Sud Argentino, E: Cia. de Electricidad del Este Argentino, and C: Cia. Central
Argentina de Electricidad. The 1929 American & Foreign Power annual report
gives the ¬ve company names, but does not use the term ANSEC, which
appears to have been adopted later. See Jose Gomez-Ibanez, Regulating
´ ´ ´˜
Infrastructure: Monopoly, Contracts, and Discretion (Cambridge, MA:
Harvard University Press, 2003), Table 6.4, note c. Mallory in his excellent
1956 master™s thesis includes a summary sheet for American & Foreign Power
in Argentina that indicates that in 1929 American & Foreign Power
incorporated in Florida a new ¬rm, the Argentine Electric Companies; and
by the end of 1930, this holding company had acquired eleven operating
subsidiaries in Argentina. Mallory™s summary has nothing on ˜˜ANSEC.™™
Mallory, ˜˜Financial Problems,™™ 85. Andrea Lluch and Laura Sanchez write
that those companies under the Florida holding company umbrella came to be
called ANSEC (they give no date). Lluch and Sanchez, De Movimiento
Popular, 17.
Notes to Chapter 5, Pages 185“191

267. American & Foreign Power Co., Annual Report 1929, 4,10“11, and
C. F. Remer, Foreign Investments in China (New York: Macmillan, 1933),
268. See Stock Exchange Year Book 1930, 3504; the resolution indicated that all
shares by warrants to bearer had to be included in the 20 percent and that
stock transfers had to be accompanied by a special declaration as to
nationality, foreign shareholdings being entered on a special register.
269. American & Foreign Power Co., Annual Report 1929, 7“8. Item 5, ˜˜to apply
the latest, most modern commercial development to the property, in the
process selling new electrical merchandise in well-lighted attractive stores,™™ is
particularly to be noted. American & Foreign Power seems to have been far in
advance of So¬na, for example, in this attempt to get utilities to promote the
uses of electricity. This emerges much later in So¬na™s strategies: See So¬na,
Annual Report 1939, 13.
270. Jones and Greenhill, ˜˜Public Utility Companies,™™ 100“14 (the experiences in
Chile); ibid., 112 (fear of expropriation). The American & Foreign Power Co.,
Annual Report 1929, 10, indicated: ˜˜Negotiations are in progress for
rearrangement of the concession contracts covering the Company™s business
in Chile.™™
271. American & Foreign Power Co., Annual Report 1929, 15; American & Foreign
Power also supplied in certain markets gas, water services, transportation
services, and telephones, and in addition, operated ice plants. Ibid.
272. Ibid., 13.

5 basic infrastructure, 1929“1945
1. For background, see Harold James, The End of Globalization: Lessons from the
Great Depression (Cambridge, MA: Harvard University Press, 2001). This is not
the place to deal with causes and effects of the stock market crash, but rather to
consider what followed in subsequent years.
2. Mira Wilkins, The History of Foreign Investment in the United States,
1914“1945 (Cambridge, MA: Harvard University Press, 2004), 306.
3. Mira Wilkins, ˜˜The Role of U.S. Business,™™ in Dorothy Borg and Shumpei
Okamoto, eds., Pearl Harbor as History: Japanese-American Relations
1931“1941 (New York: Columbia University Press, 1973), 353.
4. United States Department of Commerce, Bureau of Foreign and Domestic
Commerce, American Underwriting of Foreign Securities in 1930 (Washington,
DC: USGPO, 1931), 17 (henceforth cited as Underwriting of Foreign Securities).
5. U.S. Senate, Committee on Finance, Sale of Foreign Bonds, 72nd Cong., 1st sess.
(1932), 109. For the importance of this German public utility in developing a
regional system, see Thomas P. Hughes, Networks of Power: Electri¬cation in
Western Society, 1880“1930 (Baltimore: Johns Hopkins University Press, 1983),
6. Christopher Kobrak, Banking on Global Markets: Deutsche Bank and the
United States, 1870 to the Present (Cambridge: Cambridge University Press,
forthcoming); see also New York Times, July 20, 1930. On PUHC™s new
investments, see William J. Hausman and John L. Neufeld, ˜˜U.S. Foreign Direct
Notes to Chapter 5, Pages 191“192 407

Investment in Electrical Utilities in the 1920s,™™ in Mira Wilkins and Harm
Schroter, eds., The Free-Standing Company in the World Economy (Oxford:
Oxford University Press, 1998), 383. The Public Utility Holding Corporation
should not be confused with Utilities Power and Light Corporation, which
made the investments in Great Britain and Canada.
New York Times, July 20, 1930, and April 6, 1930; in March and April 1930,
Deutsche Bank und Disconto-Gesellschaft was arranging to distribute Berlin
City Electric Company dollar securities among its clients. Kobrak, Banking on
Global Markets. The Berlin City Electric Company™s $15 million issue was only
partly sold in the United States; the ˜˜par value of the ¬‚otation within the United
States™™ was $12.8 million. Underwriting of Foreign Securities, 22.
Ibid., 22“27, contains a list of ˜˜Foreign Capital Issues Publicly Offered in the
United States during the Calendar Year 1930.™™ It has ˜˜government and
government guaranteed bonds™™ and corporate issues. The German bond issues
for RWE and Berlin City Electric, as well as the smaller issue for Saxon Public
Works, were included as government-guaranteed bonds on this list, but on
other lists therein as publicly offered ˜˜foreign corporate securities (including
government-guaranteed issues)[our italics].™™ See ibid., 22, and also 13 and 18, for
the latter formulation. In 1930, foreign electric light and power companies
(including government-guaranteed issues), according to this report, constituted 42
percent ($191.8 million) of the total foreign corporate securities ($455.2 million)
˜˜purchased in the United States.™™ Ibid., 18. The list included companies that in turn
made foreign direct investments, such as American & Foreign Power Co.
New York Times, July 20, 1930; practically all of these names are familiar to
the reader of this book. E. Rollins & Sons was a broker, founded in 1876,
specializing in the 1920s in municipal, public utility, and corporate bonds; it
was involved in South American utilities through Intercontinents Power
Company, a ¬rm formed in 1928. G. L. Ohrstrom & Co. was a smaller
brokerage house with big 1930 plans for Latin America; it joined with the
experienced J. G. White & Co. in those endeavors. Field Glore, about which we
will say more, was a Chicago-based brokerage house.
Kobrak, Banking on Global Markets.
Mira Wilkins, The Maturing of Multinational Enterprise: American Business
Abroad from 1914 to 1970 (Cambridge, MA: Harvard University Press, 1974),
168. In 1930, the Utilities Power and Light Corporation purchased the Maritime
Coal, Railway and Power Company Ltd.; this was a major investment in a
Canadian power company that had signi¬cant coal-mining resources as well.
Herbert Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-
American Industry (1936; reprinted New York: Russell & Russell, 1970), 112.
See ibid., 142“43, 150“51, for Utilities Power and Light Corporation™s Canadian
investments. On American & Foreign Power Co., see its Annual Report 1930.
On European Electric Corp., see Moody™s Manual (Utilities) 1930, 2359“61;
New York Times, July 20, 1930; Luciano Segreto, ˜˜Gli Assetti Proprietari,™™ in
Storia dell™ Industria Elettrica in Italia, III (Rome-Bari: Laterza, 1993), 130“31,
144; and Underwriting of Foreign Securities, 18, 25. On SADE and Count
Giuseppe Volpi, Giovanni Paoloni, ˜˜L™Industrie Electrique Italienne des Reseaux´
Locaux aux Reseaux Regionaux,™™ in Dominque Barjot, Henri Morsel, and
´ ´
Notes to Chapter 5, Pages 192“193

Sophie Coeure, eds., Strategies, Gestion, Management: Les Compagnies
´ ´
Electriques et Leurs Patrons, 1895“1945 (Paris: EDF, 2001), 90“91, and Time,
Feb. 17, 1930; on Fummi, see Wilkins, History . . . 1914“1945, 352; on Banca
Commerciale Italiana Trust Co., New York, see ibid., 279“80. On Field,
Glore & Co. ™s 1929 syndications, see Hugh Bullock, The Story of Investment
Companies (New York: Columbia University Press, 1959), 38. Field, Glore &
Co. was the 1929 successor to the earlier Chicago investment bank/brokerage
house Marshall Field, Glore, Ward & Co. The latter had been involved in
substantial Italian business “ for example, the 1927 $30 million City of Milan
loan, which had Dillon, Read & Co., Bankers Trust Co., Guaranty Co. of New
York, and Marshall Field, Glore, Ward & Co. as underwriters. See advertisement
in Barron™s, April 18, 1927.
New York Times, Nov. 23, 1930. Volpi is not listed as a So¬na board member
in So¬na, Annual Report 1929; he is, however, listed as a board member in
Moody™s Manual (Utilities) 1930, 2317 (and he was listed in subsequent So¬na
annual reports).
James, End of Globalization, 46, 53. Ranald Michie, in ˜˜A Financial Phoenix,™™
in Youssef Cassis, and Eric Bussiere, eds., London and Paris as International
Financial Centres in the Twentieth Century (Oxford: Oxford University Press,
2005), 23, writes that ˜˜Britain™s leaving the gold standard in 1931 provided a
more serious ¬nancial crisis around the world than the Wall Street Crash of
1929.™™ We believe that prior to September 1931 the crisis had engulfed the
European continent. In 1930, however, there was not yet the recognition of
how steep would be the downturn.
Ten Years of Electricity, 1926“1936 (Athens Piraeus Electricity Company Ltd.)
(1936; in Greek with English summary), copy in PEA/COWD 3/3 in S. Pearson
& Son Papers, Science Museum, London. This history tells of the completion of
an Athens power station in 1929, but the need for substantial new funds, which
the Pearson group provided, buying out in the process the most important
private power stations and merging generation and distribution companies into
one; see also 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), 292 (in Greek, with translations provided by
the author). ˜˜Fuerzas Motrices del Valle de Lecrin,™™ typescript history in Box
B11, and Deloitte™s Valuation as of 1933, pp. 21, 47, 49“50, PEA/COWD 5/11,
both in S. Pearson & Son Papers (on the Spanish direct investment).
See data in Box B14, S. Pearson & Son Papers. When negotiations had started,
Belgrade was part of the Kingdom of the Serbs, Croats, and Slovenes (name
changed to Yugoslavia in October 1929).
Time, Feb. 17, 1930, and June 16, 1930; on the start of Dawnay, Day & Co. in
1928, David Kynaston, The City of London: Volume III, Illusions of Gold,
1914“1945 (London: Chatto & Windus, 1999), 327. For Lord Barnby and the
Central Electricity Board, Leslie Hannah, Electricity Before Nationalisation:
A Study of the Development of the Electricity Supply Industry in Britain to
1948 (Baltimore: Johns Hopkins University Press, 1979), 103, 360, 374.
Hannah, Electricity Before Nationalisation, 223. The Italians (speci¬cally
Volpi) had been raising a lot of money in the United States; how did they have
Notes to Chapter 5, Pages 193“194 409

resources to invest in the United Kingdom? Would this in time become part of
˜˜¬‚ight capital™™? That is our guess. We do not know whether the purchase was
before or after the British devaluation of the pound in September 1931. If after,
and Volpi still had dollar resources, then these properties might have seemed a
Catherine Vuillermot, Pierre-Marie Durand et l™Energie Industrielle (Paris:
CNRS, 2001), 99.
As an example of new activities in the fall of 1930, Continentale Elektrizita ¨tsu-
nion AG (CEAG) was registered in Basel, Switzerland, with the objective of
˜˜permanent participation in ¬rms for the generation, distribution, and use of
electric power in Switzerland and abroad, the ¬nancing of such undertakings in
whatever form, and the taking over and execution of ¬nancial transactions.™™ The
founders included Basler Handelsbank, Union Financiere de Geneve, AG Leu &
` `
Co., the Swiss Bank Corporation, an Anglo-American group of banks, as well as
the operating company Preussische Elektrizita AG, Berlin. CEAG took over
shares in the Berlin company. Hans Bauer, Swiss Bank Corporation (Basel: Swiss
Bank Corp., 1972), 278. On the new Swedish concessions in Eastern Europe, see
Ulf Olsson, Furthering a Fortune (Stockholm: Ekerlids Forlag, 2001), 100“1, and
[Jan Glete], Electrifying Experience: A Brief Account of the First Century of the
ASEA Group of Sweden, 1883“1983 (Va ˚s:
¨stera ASEA, 1983), 41. On the
rejection of the Harriman plan, reported in June 1930, see Frank Southard,
American Industry in Europe (Boston: Houghton Mif¬‚in, 1931), 41, and
Leopold Wellisz, Foreign Capital in Poland (London: Allen & Unwin, 1938),
247. According to Jerzy Tomaszewski, the Harriman project was not fully
rejected by the Polish government until 1936. Jerzy Tomaszewski, ˜˜German
Capital in Silesian Industry in Poland,™™ in Alice Teichova and P. L. Cottrell, eds.,
International Business and Central Europe, 1918“1939 (New York: St. Martin™s
Press, 1983), 239.
Ginette 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), 326.
Rene Brion, ˜˜Le Role de la So¬na,™™ in Monique Trede-Boulmer, ed., Le
´´ ˆ ´´
Financement de l™Industrie Electrique 1880“1980 (Paris: PUF, 1994), 232.
See Robert Vitalis, When Capitalists Collide: Business Con¬‚ict and the End of
Empire in Egypt (Berkeley: University of California Press, 1995), 75; for a while
in 1929, it looked like the government would build and own the Shubra power
plant. The change in the Egyptian government after the elections revived the
viability of the Empain group™s project. For where the British government stood
and for Dudley Docker™s reaction, see ibid., 77. See also R. P. T. Davenport-
Hines, Dudley Docker (Cambridge: Cambridge University Press, 1984), 210“11.
See notes to Chapter 4 for the competition among the various groups in Egypt.
On Oliven™s plans, see Hughes, Networks of Power, 317“18; Brion, ˜˜Le Role ˆ
de la So¬na,™™ 228“29 (the Heineman-Oliven project). On the historical
relationship between So¬na and Gesfurel and Oliven™s June 1930 plan, see
Luciano Segreto, ˜˜Aspetti e Problemi dell™ Industria Elettrica in Europa tra le
Due Guerre,™™ in Storia dell™ Industria Elettrica in Italia, III (Rome-Bari:
Laterza, 1993), 367, 395“396n112. Heineman and Oliven were associated in a
Notes to Chapter 5, Pages 195“196

number of projects. For example, as noted in Chapter 4, they both served on the
board of the So¬na-controlled CHADE. See ˜˜Consejo de Administracion de la
CHADE, 1926“1930,™™ given in Gabriela Dalla Corte, ˜˜Associaciones y
Negocias: Las Redes Sociales Vasco-Catalanas en el Cono Sur Latinoamericano
(1911“1936),™™ July 14, 2005, p. 5 (http://www.euskosare.org/, accessed Sept.
26, 2007 ). On the plans, see Ranieri, Dannie Heineman, 179“85, and New
York Times, July 20, 1930, which has the quoted passage and reported on the
mid-1930 plans (with Heineman™s name misspelled).
See Brion, ˜˜Le Role de la So¬na,™™ 228“29 (Heineman-Oliven); Segreto,
˜˜Aspetti e Problemi,™™ 367 (the Oliven project); Dannie N. Heineman, Outline
of a New Europe (Brussels: Vromant & Co., 1931), published in French as
Esquisse d™une Europe Nouvelle (Brussels: Vromant & Co., 1931), and in
German as Skizze eines Neuen Europe (Cologne: Glide-Verlag, 1931). Brion,
˜˜Le Role de la So¬na,™™ 229n, indicates that there were two other plans for
European electri¬cation presented in 1930, but these did not have as much
visibility as the Heineman-Oliven scheme. Katowice is sometimes rendered as
Kattowitz, the German spelling.
An exception was Rostov, Russia: They did not have a tranche in the Russian
facility, but they envisaged a network connection. Ranieri, Dannie Heineman,
180, suggests that Europel (see Chapter 4) was set up to implement the plans.
Heineman, Outline of a New Europe, 15 (on technical means), 31 (on banking
plans), 36 (on a European customs union), 48 (on the three pillars, italics in the
original), 50 (on federation).
Robert M. Kindersley, ˜˜British Foreign Investments in 1929,™™ Economic
Journal, 41 (Sept. 1931), 370“84.
Robert M. Kindersley, ˜˜British Foreign Investments in 1930,™™ Economic
Journal, 42 (June 1932), 176.
Heineman was well aware of the economic crisis in the United States when he
gave his talk in November and December 1930. He stated that American
prosperity had once seemed ˜˜unshakable. . . . Today they realize that their
position is not unassailable.™™ Heineman, Outline of a New Europe, 47.
Charles H. Feinstein and Katherine Watson, ˜˜Private International Capital
Flows,™™ in Charles H. Feinstein, ed., Banking, Currency, and Finance in Europe
Between the Wars (Oxford: Oxford University Press, 1995), 109.
Kynaston, City of London, III, 227“28, 360; R. S. Sayers, The Bank of
England, 1891“1944, 2 vol. (Cambridge: Cambridge University Press, 1976),
II, 530“32; for July 1931, we used the rate of £1 ¼ $4.86; for January 1932, the
rate was £1 ¼ $3.38.
Ioanna Pepelasis Minoglou, ˜˜Between Informal Networks and Formal
Contracts: International Investment in Greece During the 1920s,™™ Business
History, 44 (April 2002), 52.
Davenport-Hines, Dudley Docker, 211, 272ns. As indicated above, it was the
Empain group that prevailed (but its plans were not those for the Aswan Dam
and were much less ambitious). In December 1929, the Duke of Atholl, a
business partner of Docker, had declared that Docker™s group had been
intending to spend £26 million in Egypt, with orders to British manufacturers
of about £20 million, but Atholl declared ˜˜nobody is likely to put a sum of that
Notes to Chapter 5, Pages 196“198 411

sort into Egypt if there is not going to be any protection of foreigners or their
trade.™™ Ibid., 210“11. So¬na™s plans in Egypt were linked with those of Docker;
Volpi was also involved. For So¬na™s role in Egypt, 1927“1931, see Liane
Ranieri, Dannie Heineman (Brussels: Editions Racine, 2005), 170“79. Ranieri
attributes the dream to develop the Aswan Dam to Heineman. See notes to
Chapter 4 for the third scheme that did not materialize.
The formation of the Canadian holding company European Electric Corp. in
1930 may have been a way of trying to cope with the perceived new dif¬culties.
Gianni Toniolo, One Hundred Years, 1894“1994: A Short History of the
Banca Commerciale Italiana (Milan: Banca Commerciale Italiana, 1994), 68;
Segreto, ˜˜Gli Assetti Proprietari,™™ 144“45.
On the March 1931 loan of $17,850,000 granted to the city of Berlin by an
international consortium, including Harris, Forbes & Co., J. Henry Schroder
Banking Corporation, and Chase National Bank (New York), on the May 1931
formation of Berliner Kraft und Licht (Bewag) AG (Berlin Power and Light
Corp.), on Oliven as a vice chairman, and on the 38-member board, see
Moody™s Manual (Utilities) 1933, 2572. On Heineman™s role, see Ranieri,
Dannie Heineman, 186. She notes that the international consortium included
So¬na, Gesfurel, and So¬na™s regular British, Italian, and American partners, as
well as a Dutch, Swiss, and Swedish group. Berliner Kraft und Licht was the
successor to Berliner Elektricitats-Werke AG, hence the initials Bewag.
U.S. Senate, Committee on Finance, Sale of Foreign Bonds, 331. New York
Times, Dec. 6, 1931. For the holdings of Intercontinents Power in Argentina,
Brazil, and Chile, see Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment
in Electrical Utilities,™™ 368, and Wilkins, Maturing of Multinational Enterprise,
After the Japanese moved into Manchuria, lenders had Japanese companies
revise the collateral on their loans. Makoto Kishida, Presentation to the
Business History group, Kobe, Nov. 20, 2005.
For the international aspects, see Wilkins, History . . . 1914“1945, 312. The
public perception during 1930 and 1931 did not re¬‚ect reality. According to
˜˜Relation of Holding Companies to Operating Companies in Power and Gas
Affecting Control,™™ Report to the Committee on Interstate and Foreign
Commerce, U.S. House of Representatives, 73rd Cong., 2nd sess., House
Report No. 827, pt. 5 (Washington, DC: USGPO, 1935), xiii, ˜˜The ¬nancial
structures of Insull Utility Investments, Inc., and Corporation Securities Co. of
Chicago were ill-designed to withstand the more or less constant decline
occurring in 1930 and 1931 in the values of and income from securities. . . . ™™
The impact of the downturn varied by country. See B. R. Mitchell data, as cited
in the notes to Chapter 1.
Hausman and Neufeld, ˜˜U.S. Foreign Direct Investment in Electrical
Utilities,™™370 (one-third interest in French utility); Vuillermot, Pierre-Marie
Durand, 231; see also ibid., 96, 102 (Durand group acquisition). Hausman and
Neufeld, ˜˜U.S. Foreign Direct Investment in Electrical Utilities,™™ 370, 383,
390n88 (German investment); see also Kobrak, Banking on Global Markets
(for suggestions that what happened in the French and German cases were
Notes to Chapter 5, Pages 198“201

similar). Vereinigte Elektrizitatswerke Westfalen (VEW) was based in
Dortmund, not to be confused with RWE, which was based in Essen.
See ˜˜Odium [sic] in Action,™™ Time, Aug. 10, 1936, from Time Archives (http://
www.time.com/time/magazine/article/0,9171,762314,00.html, accessed Sept.
27, 2007); Hannah, Electricity Before Nationalisation, 230“31.
See Marshall, Southard, and Taylor, Canadian-American Industry, 150.
American & Foreign Power, Annual Report 1929, passim, esp. 6“7.
For the Cuban problems that related to the falling sugar prices, see Harold van
B. Cleveland and Thomas F. Huertas, Citibank 1812“1970 (Cambridge, MA:
Harvard University Press, 1985), 109“10. Quote is from American & Foreign
Power, Annual Report 1929, 13.
American & Foreign Power, Annual Report 1930, 1“5.
Ibid., 6.
Ibid. On the traditional managing agency system within India, see Geoffrey
Jones, Merchants to Multinationals (Oxford: Oxford University Press, 2000),
29“30, 164, 181“82.
American & Foreign Power, Annual Report 1930, 10“11, and Annual Report
1929, 8“9.
American & Foreign Power, Annual Report 1930, 11“18.
Ibid., 7.
Ibid., 7“8.
American & Foreign Power, Annual Report 1931, 6“7.
Ibid., 4“5; in 1930, it had not paid dividends on common stock, but it had paid
on all the other classes of preferred shares.
American & Foreign Power, Annual Report 1932, 3.
Ibid., 4.
Ibid., 9.
The grandest investigation of utility holding and operating companies was by
the U.S. Federal Trade Commission (FTC). It had been authorized in February
1928 and continued on through the depression. Additional congressional
inquiries accelerated in 1932, not long after the Insull collapse. After 1933, they
mounted. Over one hundred volumes of reports were published in connection
with the FTC investigations. For a summary, see U.S. Federal Trade
Commission, Utility Corporations, Summary Report, Doc. 92, Pt. 72-A, 70th
Cong., 1st sess.(1935). On the scrutiny of investment bankers, see Vincent
P. Carosso, Investment Banking in America (Cambridge, MA: Harvard University
Press, 1970), 320“430.
Max Winkler, Foreign Bonds: An Autopsy (Philadelphia: Roland Swain, 1933),
Roosevelt™s position was clearly expressed in his 1932 campaign speeches.
Moreover, there had been in the United States a decade-long political battle
over what to do with the government-sponsored Muscle Shoals, Alabama,
project, which had been started up during World War I for the purpose of
producing nitrates and included the Wilson Dam on the Tennessee River. TVA
was the Roosevelt administration™s answer.
Cleona Lewis, America™s Stake in International Investments (Washington, DC:
Brookings Institution, 1938), 659.
Notes to Chapter 5, Pages 202“203 413

62. The German government arranged certain buy-back programs, buying German
dollar debt that was selling at low prices and thus trying to eliminate or at least
reduce German obligations. See Wilkins, History . . . 1914“1945, 802n115.
63. See ibid., 379“80, for the general situation, not speci¬cally in utilities.
64. Stephen A. Schuker, American ˜˜Reparations™™ to Germany, 1919“33 (Princeton:
Princeton Studies in International Finance No. 61, Department of Economics,
Princeton University, 1988), 74.
65. Harm Schroter, ˜˜Globalization and Reliability: The Fate of Foreign Direct
Investment in Electric Power-Supply during the World Economic Crisis, 1929“
1939,™™ Annales Historiques de l™Electricite. 4 (November 2006), 121. On


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