WEALTH SANS ABILITY.

Taranaki Daily News, Volume LVI, Issue 267, 9 April 1914, Page 3

WEALTH SANS ABILITY.

ARISTOCRATS KAII, IN IiI'SIXESS. GERMAN PRINCES' ENORMOUS LOSSES. B y Cable Press Association—Copyright . ' Berlin, April 7. The Chronicle's correspondent? states that/the break-up of the Princes' Trust is complete. Princes Furstcnburg, Ilohenlohe and Gehringcn entered into partnership six years ago., and soon controlled a huge_ business, in many parts- of tile world, including theatres, hotels, mines, tramways, shop-;, steamship lines, farms and forests. Their total capital was 120 millions sterling. Prince Furstenburg'& wealth when the trust was formed was 2o millions, Prince Holienlohc's 12 milPrince Eurstonburg is now, comparatively poor, and has already sold some of his estates. Prince llohenljhe's estates -are now worth £0,500,000. and his debts are over £0,000,000.

Die failure of W. YVerthcimi, Ltd., one <of the best known enterprises in Berlin, appears to be involved in the collapse of the Trust; and this incident may /renew, public interest in the remarkable financial experiments' in which several of the Kaiser's most intimate friends have recently been concerned, says the Auckland"Star. The Princes' Thist" was an attempt on the part of a coterie of 'high-bora and enormously wealthy Germans to prove that under favorable conditions the aristocratie section of the nation is fully competent to manage its affairs and to make a great commercial and financial success of any business that it undertakes. -The heads of tliis select and curiously constituted syndicate were Prince MaicEgon zu Furstenburp and Prince Christian of Hoheniolie, both immensely wealthy, and admittedly able men. These two princes possesscd P ro I jer t«s worth at least £20,000,000, and, with the assistame of their aristocratic friends and allies they controlled on behalf of the "Princes' IJ-ust" a capital of at least £100,000,000 It was known that the Kaiser, who is a personal friend of the two princes, took great interest in this experiment; and the syndicate started with all conditions—wealth, prestige, personal influence, popularity—entirely in its favor. But withm five years the operations of then Princes' Trust" ended in. a complete collapse. I'.arly in its career the trust came into conflict with the Deutsche Bank, which stands f or the commercial ability and financial strength of middleclass Germany, as opposed to the aristocrats interests represented by the princes. The contest did not last lonir, and it was only at the instance of the Kaiser that the Deutsche Bank was* induced to stay its_ hand, and five assistance to the 'Princes' Trust," which the inexperience and recklessness* of its leaders soon brought to the verge of ruin. The operations of the trust were conducted •n a gigantic scale, and in the most optimistic "spirit; but, unfortunately, results' did not work out in iwcdUance with the sanguine anticipations of the princes. the princes are safe enough as regards solvency, for their enormous landed estates provide ample i security-for their liabilities. Hut th" experiment provided a useful lesson on the value of business training, and the failure of the "Princes' Trust" certainly suggests that neither wealth nor personal ability nor soeia! standing can compensate for the lack of that commercial and 'financial experience which is so absolutely indispensable for success in models (commercial life.