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PUBLIC RECORD OFFICE
Reference :-
CO.885/25
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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The sum of 7.5 million marks represents exactly the majority of the share capital of 75 million marks of the Metallgesellschaft, so that, if the whole concern requires fresh capital and wishes to realize the high rate of exchange of these shares, the rest of the shares need only be issued.
Instead of doing this, the concern introduced in May, 1912, the shares of the Schweizerische Gesell- schaft fuer Metallwerke at the Bale Exchange at an exchange of 150 per cent. Of course, it is not known how many shares of the Schweizerische Gesellschaft remain in the hands of the personages backing the whole concern. Anyhow, the absolute control over the most important enterprise, and every considerable portion of the capital of the enterprise second in im- portance, of the whole concern was thus entrusted to the Schweizerische Gesellschaft fuer Metallwerke.
At the time of the foundation of the Schweizer- ische Gesellschaft the Berg und Metallbank received 8.48 million francs fully paid up and four million francs paid up with 50 per cent., at the exchange of 110 per cent., and the rest in debentures of the new company. The Berg und Metallbank therefore controls the new promoting company by itself already. The shares of the Merton Company are in the books of the Schwei- zerische Gesellschaft with six million francs, those of the Metallgesellschaft with 29-5 million francs. The dividend paid so far by the company amounted to 8 and 9 per cent. The object of the establishment of the new promoting company in Switzerland was, of course, in the first place again the attraction of foreign capital, but, in the second place, the avoidance of the high taxes which a further expansion of the German promoting companies would have incurred, quite apart from certain advantages of the Swiss Act concerning shares, as, for instance, the possibility of issuing new shares before the old ones have been fully paid up, which is of importance for controlling purposes. A third consideration was that the Schweizerische Gesell- schaft was able to issue debentures. The founders clung so persistently to the idea that the Berg und Metallbank was a real bank that they did not con- sider it advisable to let the latter float a debenture Ioan, such loans being based in Germany, as a rule, only upon real capital. In Switzerland people have always been less particular in this respect.
The second great financial transaction of the Merton concern in 1910 was the amalgamation of the oldest daughter company of the concern--the Metal- lurgische Gesellschaft-with the Berg und Metallbank, the two being henceforth known as the Metallbank und Metallurgische Gesellschaft A.G. at Frankfort-on- Main. For every five shares of the former four shares of the latter were given, and the new shares introduced at the Frankfort Exchange at 126 per cent. For every five shares of the Metallurgische Gesellschaft the shareholders thus received a little over 5,000 marks, or about 170 per cent., which must be considered quite a satisfactory indemnity considering the last dividend of twice 6 per cent. Already before that the "bank had raised its paid-up capital to 34 million marks. It also took over 3-15 million marks outstanding share The certificates of the Metallurgische Gesellschaft. newly combined firm now has larger investments in
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the following companies :-510,000 marks in shares of the Metallgesellschaft, Frankfort-on-Main, 8,484,500 francs in fully paid-up shares of the Schweizerische Gesellschaft fuer Metallwerke, Bale, four million francs in shares, paid in at 50 per cent., of the same company, 759,000 dollars in shares of the American Metal Company, New York, 759,000 dollars in obliga- tions of the same company, 89,220 pounds sterling in fully paid shares of the Merton Metallurgical Com- pany, Limited, London, 327,550 pounds sterling in shares, paid in at 25 per cent., of the same company, 10,000 pounds sterling in shares of the Australian Metal Company, London and Melbourne, 520,800 Mexican dollars in shares of the Compania Minera de Penoles, Mapimi (Mexico), 57,700 Mexican dollars in shares of the Compania de Minerales y Metales, Mexico, 225,000 francs in shares of the Compagnie des Minerais, Liège, 766,000 francs preferential shares of the Société des anciens Etablissements Sopwith," Paris-Linares, 1,438,000 francs in shares of the Usine de Desargentation Société Anonyme, Hoboken- Antwerp, 807,000 marks in shares of the Metallhuette Duisburg A.G., Duisburg, 1,900,000 marks in shares of the Oberschleische Zinkhuetten A.G., Kattowitz, 860,500 marks in shares of the Bensberg-Gladbacher Bergwerks und Ruetten A.G., Berzelius, 825,000 marks in shares of the Norddeutsche Affinerie A.G., Hamburg, 797,000 marks in shares of the Heddern- heimer Kupferwerke und Suddeutsche Kabelwerke A.G., Frank fort-on-Main and Mannheim, 750,000 marks original shares of the Bleihutte Call G.m.b.H., Call in the Eifel Mountains, 420,000 marks in share certificates of a syndicate for mining shares of the Rastenberg Mines, and 710,000 marks in share certi- ficates of a syndicate for production of nitrogen. The Metallbank und Metallurgische Gesellschaft are, more- over, shareholders of the banking firm Delbruck, Schickler & Company in Berlin, and are interested, furthermore, in seventy-eight smaller investments. The total are booked at 38-5 million marks, 15.9 million marks of which were owned by the former Metal- lurgische Gesellschaft.
The dividend paid by the Company rose from 6 per cent in the first few years to 6 per cent. for 1910-1911, and to 7 per cent. for 1911-1912. Dr. Wilhelm Merton, of Frankfort-on-Main, is Chairman of the Board of Trustees of all the German companies of the concern.
In 1912 the Metallgesellschaft raised its capital from 15 to 18 million marks, whereupon the Metall- bank, in order to take over its portion of the new shares, called in the balance of six million marks on its shares. At the same time the Metallgesellschaft in- vested money in the Mitteldeutsche Versicherungs A.G., of Dusseldorf, in the Allgemeine Revisions und Verwaltungs A.G. of Berlin, in the Solotwina Naphtha-G.m.b.H., of Lemberg, and in the Oester- reichische Petroleum-Industrie A.G., of Vienna, and founded investigation syndicates for Hungary, Mexico, and Russia.
The object of this great combination of control- ling and promoting companies was not merely that fol- lowed by the American railway companies, namely, to 'control as large a number of enterprises (whose stocks
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Reference :~~
885/25
RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC
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wing companies :-510,000 marks in shares of allgesellschaft, Frankfort-on-Main, 8,484,500 fully paid-up shares of the Schweizerische haft fuer Metallwerke, Bale, four million à shares, paid in at 50 per cent., of the same ,759,000 dollars in shares of the American ompany, New York, 759,000 dollars in obliga- the same company, 89,220 pounds sterling in id shares of the Merton Metallurgical Com- imited, London, 327,550 pounds sterling in aid in at 25 per cent., of the same company, ounds sterling in shares of the Australian Company, London and Melbourne, 520,800 dollars in shares of the Compania Minera de Mapimi (Mexico), 57,700 Mexican dollars in f the Compania de Minerales y Metales, 225,000 francs in shares of the Compagnie des Liège, 766,000 francs preferential shares of été des anciens Etablissements "Sopwith," nares, 1,438,000 francs in shares of the Usine irgentation Société Anonyme, Hoboken- 807,000 marks in shares of the Metallhuette A.G., Duisburg, 1,900,000 marks in shares Oberschleische Žinkhuetten A.G., Kattowitz, marks in shares of the Bensberg-Gladbacher und Ruetten A.G., Berzelius, 825,000 shares of the Norddeutsche Affinerie A.G., 797,000 marks in shares of the Heddern- Kupferwerke und Suddeutsche Kabelwerke "ank fort-on-Main and Mannheim, 750,000 ginal shares of the Bleihutte Call G.m.b.H, he Eifel Mountains, 420,000 marks in share s of a syndicate for mining shares of the rg Mines, and 710,000 marks in share certi- a syndicate for production of nitrogen. The ik und Metallurgische Gesellschaft are, more- reholders of the banking firm Delbruck, & Company in Berlin, and are interested, re, in seventy-eight smaller investments. are booked at 38.5 million marks, 15.9 million which were owned by the former Metal- Gesellschaft.
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dividend paid by the Company rose from in the first few years to 6 per cent. for
and to 7 per cent. for 1911-1912.
Dr. Merton, of Frankfort-on-Main, is Chairman ird of Trustees of all the German companies
Icern.
12 the Metallgesellschaft raised its capital o 18 million marks, whereupon the Metall- order to take over its portion of the new led in the balance of six million marks on its At the same time the Metallgesellschaft in- oney in the Mitteldeutsche Versicherungs Jusseldorf, in the Allgemeine Revisions und ga A.G. of Berlin, in the Solotwina Fm.b.H., of Lemberg, and in the Oester- Petroleum-Industrie A.G., of Vienna, and investigation syndicates for Hungary, id Russia.
bject of this great combination of control- romoting companies was not merely that fol- he American railway companies, namely, to large a number of enterprises (whose stocks