100
!
essential particulars connected with the general financing of the firm. Further investigation tends to show that there was no intent to mislead but that the persons in Hongkong and Singapore connected with the firm, with the exception possibly of Mr. C. F. Heermann, were in fact ignorant of the actual position of affairs, as the general control of the business as a whole was in the hands of Mr.
Carl Heermann in Germany.
8.
Messrs. Happin and Webb are no doubt aware that orders for goods were frequently placed by Mr. Carl Heermann and that accounts were usually paid by him. No information is forth -coming from Mr. C. F. Heermann, but it appears to be the case that Mr. Carl Heermann controlled the financing of the Hongkong and Singapore Branches, keeping for his own purposes, as regards Hong- -kong, a considerable overdraft at the Bank, as was customary among German firma. In the memorandum forwarded by Messrs. Mappin and Webb it is stated that Mr. Carl Heermann was understood to have had over £20,000 capital in the business; and with his assistance the business would no doubt be entirely solvent. But with that assistance withdraw, and having in view the fact that immediately prior to the war Mr. Carl Heermann drew against the Hongkong branch all the cash at his command, it is hardly a matter of surprise and it is certainly not the fault of the Liquidators, that the Hongkong assets may not meet the Hongkong liabilities.
9.
When the Liquidators wrote their letter of the 27th. November they were in negotiation to sell the business as a going concern for the sum of $120,000, the sale at which price was acquiesced in by Mr. C. F. Heermann. The sum offered was subsequent -ly reduced to 100,000. Mr. C. F. Heermann was not prepared to agree to this latter sum and in view of his opposition and having regard to the interests of the creditors I was unable to authorise its acceptance. I may take this opportunity to acknowledge the receipt of Mr. Harcourt's telegram of the 4th. May, to the effect that the winding up is not to be completed nor the business sold pending the receipt of a despatch transmitting representations
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