CH American capitalists show no intention at present investing in China, it is'considered in Tokyo that they d Japan's credit as good. This is because an important bet ers in New York and Japanese electric ts has revealed by the announcement that Messrs.
Read & Ca.
York have agreed to the transfer of the Dai Power Generation of Transmission Ca., or Pehe Power Ca. of Tokyo to the ni ie 1 atic 1 electricity corporation, under the electric power nadonalization law passed by the Imperial Diet in 1938. The latter corporation is being established under that law.
The Daido Company's property been transferred under the original was mortgaged as security for two official schedule. loans floated in the United States by The new corporation is to take its fiscal agents, Messrs. Dillon, Read over the entire plant of the Daido Ca, with the Industrial Bank of Company, which is in first-class Japan' acting, in Tokyo, as trustee operating order, on the basis of its ior the bondholders. original cost. It woüld/cost a far "The total amount borrowed, $28,- greater amount to construct the plant comprised $15,000,000, raised at the present time, and to build it 1924, with interest at 7 per cent. at all would be difficult, if not imand to be redeemed in 20 years, and possible, owing to scarcity of mate-floated in 1925. with in- rials and various war-time restric-at 65 per cent. and to be re- tions, d in 25 years. These two loans On the other hand the Ministry all the company's foreign of Communications has agreed to take over the Daido Company's out-The principals of both loans have standing American loan obligations been reduced by periodic payments on the basis of the yen-dollar ex-ünder the terms of the contracts, change rate prevailing when the loans With the result that at present $4.- were contracted. This sacrifice means is outstanding against the that the new corporation will should-loan, and $5,030,000 against the er an amount, in principal alone, second loan, a total of $9,670,000. equivalent to over! 30 per cent. of The loan contracts stipulated that, the $9,670,000 involved. on the basis the property Gould not be transfef^ of the present exchange rate. Against red, and anxiety on this score was|this, however, is set the value of the basis for criticism of the electric getting the plant at its original cost.
or to Us passage last year.
4 asha It has also been arranged that the entire Daido personal will be trans-coa aren r guns en. to th new barpirdtion. this éepihg their employment, and a tered into with, the American capit- retirement fund as been set aside wy duo E TRE whith will go ratcaty by the Japanese interests, cowawaw the arrangement (he resulted in success for the ww Ministry of Communications took into A a
industrial Masters es they consider Company had faithfully carried out s is regarded with much fal and consideration the fact that the Daido it shows Japan's actual finepeial 1S Obligations o e helping to stability is recognized in the United Cep
PEO
Biability is recognizes on: Read prfberye Japan's financial credit, in a apt te Likely to be follow: Spite of anne heavy sacrifices in Sd by other American fiscal agents Making M w rw. of principal and of inferest at a much lower rate for When the question comes "Winer the yen than when the loans were Japanese c power companies, contracted, besides having to pay the tina ade: "mortgage, for intere at the high rates originally American loans, to the new national tipte electricity corporation. rati American sympathy with Japan im-N is recalled that, owing to "Japan's Credit not so Bad" of, loans cou! have been the Um earthquake It was feared at first in Japan obtained' then a} comparatively low that the negotiations might prove interest, and some years later also very difficult, or even unsuccessful, low rates were obtainable. But a owing to the feeling in the United year or so after the earthquake, when against Japan over her actions the' Dido loans were contracted in God policy in China, and the. refusal, 1924 and 1925, and Japan was strugbb fpr as is known, to extend can loans or credits to Japan in the due to the catastrophe, much higher Ameri gling with the huge financial losses
is role bat BDA Malo.
"n Xu image outcome is rates, round 7 per cent, were charg-
Ice Business in
Text read from the printed page and cleaned; old type leaves the occasional error.