Tapping the Rivulets

More money than ever is needed to finance Europe's broadening technology -- and more people than ever seem to have it. For those reasons, two venerable family-run firms last week were deep in plans to let little investors into their operations. In France, the Rothschild Bank chose its 150th anniversary to announce that Messieurs de Rothschild Freres, as the bank is formally known, is expanding from investment banking into a commercial bank serving smaller depositors. And in Belgium, the huge chemical company of Solvay et Cie. held a meeting at which 1,800 family "partners" discussed increasing Solvay's capital by selling shares to the European public.

The Rothschild announcement marked the first time that Baron Guy de Rothschild, 57, fourth generation head of the French branch of the world's most famous financial family, had ever held a press conference. Assembling 100 newsmen in the sedate banking offices lined with portraits of earlier Rothschilds, Guy explained why the Rothschilds were undertaking a policy of "opening up, democratization and de-mythification." Said he: "Banks can only develop in bringing together the liquid savings of an ever more numerous, ever more diffuse clientele. Many rivulets must be channeled to irrigate many users." For that reason, the Rothschild Bank, up to now the eleventh largest among French investment banks, will open branches and solicit smaller accounts. The money will be used on such Rothschild projects as a channel tunnel to England and high-speed trains. Finishing up his press conference, Guy de Rothschild cheerily demonstrated what he means by democratization. He and Wife Marie Helene, 35, attired for the occasion in a striking minidress, escorted newsmen to the partners' dining room for a toast in whisky and chilled champagne to the Rothschild future.

Solvay will also remain in family control for the foreseeable future. Meeting in Brussels, the 1,800 partners agreed with courtly Baron Rene Boel, their managing director, that accelerated technological progress and increased competition made it necessary to seek public capital. They voted to ante up $40 million more themselves. Eventually Solvay partners will reap a four-for-one stock split, and since not all of the new shares will be fully negotiable, the family will remain the biggest shareholder in the chemical complex that grew from Ernest Solvay's 106-year-old process for making chemical soda into a company with 30 plants in twelve nations on three continents.

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