277
PUBLIC RECORD OFFICE
C.O.
Reference :-
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
32
3. The decision conveyed to me in your telegram of the 10th of February,* that enemy firms should be completely liquidated, makes it unnecessary for me to say anything in answer to your despatch under acknowledgment, but I enclose copies of three letters which may be of use for reference :-
SIR,
(1) From Messrs. Ford, Rhodes, Thornton & Company, the controllers of the Freudenberg properties, showing the nature of the business which they have been carrying on;
(2) From the Principal Collector of Customs, as to the practice of his De- partment in regard to goods containing material of enemy origin; (3) From the Chairman of the Chamber of Commerce, on the question of the
winding up of enemy firms.
I have, &c.,
R. E. STUBBS, Officer Administering the Government.
Enclosure 1 in No. 31.
Colombo, 4th January, 1916. WE have the honour to acknowledge receipt of your letter No. 8/W, dated the 3rd instant, and to supply you with the following information in reply to your inquiry:-
(1) The approximate number of people employed by this business is as follows: (a) At the Hultsdorf Mills, 440 to 450; the number varies in accordance
with the business on hand.
(b) At the Kotahena Mills, 11.
(c) Office staff, 39.
(2) The Hultsdorf Mills are being used exclusively for the crushing of copra for others. No copra is now being crushed for this firm, the pre-war contracts which we were obliged to fulfil having been completed by the end of November last. Besides the crushing of copra, the manufacture of martinol and coir matting is being carried on, as well as the cooperage in connexion with the manufacture of oil.
Kotahena Mills.-There is a considerable stock of piece goods stored here; also plumbago sold, but not yet taken delivery of in full by the purchaser. Cigars are, to a small extent, being manufactured from tobacco leaf in stock delivered under pre-war contracts.
(3) The general business now being carried on by us is chiefly as follows:- The fulfilment of pre-war contracts with firms in Britain; the liquidation of the piece goods and the disposal of other import stocks; the collection or securing of book debts and the collection of rents; the sale of rubber from the firm's estates; the discharge of local current liabilities and liabilities to approved firms in Britain. We have further undertaken the financing and supervision, as far as they affect this firm, of the plumbago business carried on by Mrs. Mary de Silva and Mr. Philip de Silva, under the scheme sanctioned by an Order of the District Court dated 11th-12th August, 1915.
Our time is also much occupied in attending to matters in connexion with Prize Court cargoes, and generally attending to the upkeep and insurance of the firm's premises and stocks.
(4) The estates managed by us are Madawela Estate, which is superintended by Mr. Wallace Westland, and Penihela Estate, in charge of Mr. B. Austin Keyser. The latter estate has been mortgaged to Messrs. Freudenberg & Company by Dr. Cuntze, the owner, and we are advancing sums to pay for the monthly upkeep. (5) We may mention that it is expected that the current contracts for crush- ing will be worked off by the end of February, and that the mills manager advises us that it will be necessary thereafter to close the mills for a period of about two months for the purposes of repairing and cleaning the machinery.
We have, &c.,
FREUDENBERG & COMPANY, FORD, RHODES, THORNTON & COMPANY,
(No. 13.)
33
Enclosure 2 in No. 31.
His Majesty's Customs,
Colombo, 10th January, 1916.
Proposed shipment to Controllers of Messrs. Freudenberg & Company of certain goods containing material of enemy origin.
SIR,
WITH reference to your letter No. 1/W, of the 3rd instant, I have the honour to inform you that I can find no record in this office of the issue of any such state- ment as that " if any particle of material or fabric from any of the enemy countries should enter into the manufacture the goods are liable for confiscation by His Britannic Majesty's Government." The existing practice is to pass goods of neutral origin, if otherwise unexceptionable, provided not more than twenty-five per cent. of the value of the finished article is due to enemy labour or material.
I am, &c.,
The Honourable
The Colonial Secretary.
Enclosure 3 in No. 31.
(Confidential.)
SIR,
F. BOWES,
Principal Collector.
The Ceylon Chamber of Commerce,
Colombo, 16th February, 1916. Wrra further reference to your letter of the 7th ultimo, covering copy of a despatch from the Secretary of State for the Colonies, relative to the business of Messrs. Freudenberg & Company, I have the honour to inform you that the subject matter of this despatch has had the careful consideration of my Committee, who are strongly of opinion that the time has now arrived when, in the best interests of the Colony, early steps should be taken to wind up Messrs. Freudenberg & Com- pany, in common with all other enemy firms.
I would further respectfully emphasize the fact that the uncertainty as to the position of these enemy firms at the end of the War is seriously handicapping and restricting the development of British, and possibly Allied, enterprise in those fields of activity hitherto largely under German influence in the Colony.
If under existing conditions it is not possible for a liquidator to sell enemy free- hold property, my Committee are of opinion that Hultsdorf Mills, which contain on of the largest and most important plants in the island for the manufacture of coco-nut oil, should be leased for a period of not less than five years, since it would admittedly be prejudicial to the interest and trade of the Colony if it was merely to be clo-ed down.
I would like to add that, if it is hereafter decided to place restrictions on the continuation of German trading, my Committee desire to place on record that such a movement would receive their active support, and are of opinion that the best interests of the Colony would be greatly benefited thereby.
I have, &c...
The Honourable
The Colonial Secretary.
F
WILLIAM MOIR,
Chairman.
"-་-FTES
The Honourable
The Colonial Secretary.
* No. 22.
Controllers.
94