3.
39
9. 10 N
JI.
#
3.
on the profits of the Exohange department.
Arms and Goverment Contracts all arranged by Canton
office.
General business fairly sound, There was only $ 140,000 outstanding when the Liquidators took over
Slemosen & Co. The Hongkong branch of this old - establi. shed Fim appears to have been hopelessly insolvent for some time, and there is abundant evidence to prove that they ware
Their in an unsound condition in all branches in China. actual position certainly did not warrant the splendid finan cial facilities they were obtaining from British Discount
House.
Imports. The piece goods and sundry business was finance: by London Discount Houses on six months D/A terms. Six to eight months credit was allowed to Chinese, and the proceeds instead of being earmarked against the Draft, were placed to general account, and the Bills were either paid off froma general account or else renewed at maturity.
The extra remuneration gained on imports to cover the risk of credit was 1- 17%.
The Compradore was allowed 1% on cash transactions and 1% on credit business, as he guaranteed the noscunts.
The Firm were joint agents with Arnhold, Karberg & Co. fær Messrs. Orenstein & Koppel, the well known Manufacturers of light railway material, who consigned all their goods free. They were also joint agente with A, K. & 00, and C, & Co, fo the Central Agency Ltd, whose goods were also free.
Practically all the Firm's finance and insurance was with British Houses, All shipments were covered against war risk for at least a year prior to the outbreak of hostilities.
Mesare. Siemssen & 00, hed not even a current account with the Deutsch-Asiatische Bank,
Exchange. Wild exchange gambling appears to have been
In a private cable from the cause of the Firm's losses. Hongkong to Hamburg on May 30th 1914, the following exchange