Exporting Management

Since the armistice there have been many plans, both successful and the reverse, for exporting American surplus capital abroad. Few of them, however, have provided that American executive management should also be exported with it to look after it. The result has been that this country has purchased many foreign bonds, some of which were good, and several of which have been not so good.

A new method of exporting capital and management too has recently been devised by the Electric Bond and Share Co.--a subsidiary of the General Electric Co., by the incorporation of a new company, the American and Foreign Power Co. This new concern which has successfully floated an issue of 7% first preferred stock by public subscription, will acquire a number of public utility companies controlled by the Electric Bond and Share Co. in 39 communities of Cuba, Panama and Guatemala. The new company expects considerable prosperity from the present depreciated rates for foreign exchange, and also since public utilities in foreign countries are in general more profitable now than in the U. S.