Business: Largest Offering

Japan's rivers no longer dash down Japan's mountains only to spray cherry trees and artists painting their delectable scrolls. The waters now swoop into flumes and pipes and against great turbine fins to light bulbs in Japan's homes and turn the machines of her factories. Japan's electrical enterprises now are surpassed only by those of the U. S. and Germany. They represent $1,834,000,000 capital.

Last week the first of those enterprises both in time and size—the Tokyo Electric Light Co.—offered to sell $121,809,250 mortgage bonds. This is the largest corporate (as distinct from governmental) bond offering and the largest power & light company issue, either foreign or domestic, ever made. And yet investment bankers sought eagerly for allotments. To Japanese bankers went approximately $30,000,000 worth, to British $21,899,250, to U. S. $70,000,000.

That $70,000,000 was the largest foreign financing offered in the U. S. this year, and it brought together 30 of the country's mightiest investment bankers. With the Guaranty Co. as head of the selling syndicate were:

Dillon, Read Union Trust, Pittsburgh

Blyth, Witter Mellon National

Halsey, Stuart First National, Boston

Lee, Higginson Illinois Merchants Trust

Bonbright Continental National

Harris, Forbes First Trust & Savings, Chicago

Brown Bros. Union Trust, Cleveland

Field, Glore Mitsui Bank

Otis Bankers Trust

W. A. Harriman J. & W. Seligman

W. C. Langley International Acceptance Bank

Hemphill, Noyes Stone & Webster & Blodgett

J. G. White Edward B. Smith

Hayden, Stone E. H. Rollins & Sons H. M. Byllesby

Although J. P. Morgan & Co. were not in this syndicate (they always lead, never follow), yet they have been closely connected with Japan's international financing and the bond salesmen who sallied out of those 30 company offices last week with Tokyo Electric Light mortgage bonds carried on their banners a legend of Japan phrased by Morgan Partner Thomas W. Lament. Said he last October, just as he was completing a visit of inspection over the country and its possessions: "We believe in Japan; we believe in her peaceful intentions; we believe in her courage, her patience, her faith and her loyal friendship for America."

Yet only 75 years ago Japan mortally feared and hated the U. S. and all the Occident. But Commodore Matthew Calbraith Perry in 1853 successfully "urged Japan to join the modern comity of nations." In a flurry of trepidation and prayers the Japanese received his suggestions, sewing machines, toy trains—and a telegraph.

The telegraph set was in many ways the best gift that Commodore Perry gave in 1854. The West knew very little about electricity at the time. Scientists and mechanics were still experimenting. And the Japanese learned with the rest of the world.