European Electric

Shrewd friend of diplomats and financiers is Count Giuseppe Volpi Di Misurata, onetime (1925-28) Italian Minister of Finance. Although a shipping enterprise brought Count Volpi his first wealth, his chief interest now is not water to bear his vessels, but water to spin the turbines of the vast hydro-electric enterprises which he controls. Recently, intent upon the development of a gigantic European electric power system, he decided he needed U. S. capital. Last week he and his associates finished a far-reaching deal with Americans who had capital, were glad to spend it for power in Europe. The result was a new holding company, European Electric Corp., Ltd., incorporated in Canada, sponsored by a powerful group including Electric Bond & Share, General Electric, Italian Superpower, Bonbright & Co., Inc., Field, Glore & Co. In scope, European Electric will resemble Bond & Share, controlling, managing, financing and constructing utility enterprises.

The new company will begin operations with securities having a market value of $26,000,000. In addition, it has a $10,300,000 surplus, will obtain $12,900,000 by a debenture issue. The companies in which it will acquire an interest are scattered throughout Germany, Italy, Austria, Spain, Poland and Greece. Those in which a substantial interest will be acquired include:

Adriatic Electric Co., formed in 1904 by Count Volpi, serving Venice, Trieste, Bologna, Verona, Padua, and other centres in 15 northern provinces. In the last seven years its output has increased 110% and it now ranks as one of the leading Italian power companies. A big stockholder is the Italian Superpower Corp., of which Sidney Zollicoffer Mitchell is executive committee chairman and his son, S. A. Mitchell, chairman of the board.

Italo-Belge (Italian-Belgian Electric & Public Utility Co.) was formed in 1928 by Count Volpi. It is chiefly a construction and managing company, has at its disposal the engineers of Adriatic Electric.

Europel (European Electric & Public Utility Co.) is largely held by Italo-Belge. It has minority interests in many European companies, will bring European Electric valuable affiliations with bankers and utility men. Europel was formed last year by Count Volpi together with Electrobank (Bank for Electric Enterprises, Zurich), one of Europe's greatest electric trusts.

Significance. It is said that once Sidney Zollicoffer Mitchell claimed his Electric Bond & Share would eventually manage all the power companies of the world. Far-distant as this may be, last week's deal gave Bond & Share a large wedge in the European utility situation and placed it in a position to compete with the melliferous Sofina (Societe Financiere de transports et d'enterprises industrielles), which is second in size only to Bond & Share, operates throughout Europe and in South America. Sofina is a vast holding company controlled by the Dannie Heineman interests of Belgium, and also linked with the potent Gesfurel (Gesellschaft fuer Elektrizitaet), likewise in a competitive position with the new company.

When European Electric's many angles are realized, no silly dreamer would he be who catches a picture of the ultimate utility company--a vast single enterprise drawing its funds from all the money centres, its engineers and executives from the best of every country; able to utilize natural power wherever it is abundant, transfer it to the great factory cities of all nations.

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