313
PUBLIC RECORD OFFICE
C.O.
Reference :-
885/25
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
PUBLIC RECORD OFFICE, LONDON
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It is, however, open to you, under Section 30 of Ordinance No. 20 of 1916, to declare the liquidation completed subject to any pending matter.
We should mention that Mr. Philip de Silva is paying us the income derived from his own private pits, in liquidation of the indebtedness of Mrs. Mary de Silva, and, in spite of the difficulties above referred to, he will do his utmost to finish the debt of Messrs. Freudenberg & Company by the 31st July.
& G. de Saram we have not informed the Under advice from Messrs. F. de Silvas that it is intended to make an application to the Secretary of State for an extension, and the de Silvas are under the impression that unless the claim is This will induce them to work all settled by the 31st July they will be sold up the harder.
With regard to the other claims of Messrs. Freudenberg & Company, Messrs. F. J. & G. de Saram, after consultation with the Attorney-General, have arranged with the District Judge for a speedy procedure to be adopted for the recovery of all enemy firm liquidation claims, and actions are now being filed for the recovery of all outstanding accounts.
The Honourable
We have, &c.,
The Custodian of Enemy Property.
(No. 24.)
SIR,
FREUDENBERG & COMPANY,
FORD, RHODES, THORNTON, & COMPANY,
Liquidators.
Enclosure 2 in No. 86.
Office of the Controller of Revenue, Colombo, 21st March, 1917.
The Enemy Firm Liquidation Ordinance.
WITH reference to your letter of 5th March, 1917, we have the honour to report as follows
2. We held a conference with Messrs. Harding & Bell, representing the liquida- tors of Freudenberg & Company and of the other firms which have been declared enemy firms under Ordinance 20 of 1916.
3. The Hultsdorf Mills are already in process of being advertised for sale by tenders in England, India, and Ceylon, and we advise that the same course be taken with regard to the building in Prince Street, Fort, known as Freudenberg's building.
4. We are of opinion that the remaining properties of this firm, which consist of the Kotahena Mills and certain other properties connected with the business and situate in or near Colombo, be sold locally by auction or teuder, as well as the three estates in the Matale District owned by the firm. We understand from the liquidators that the title to one or more of these estates is of a somewhat imperfect nature, in that it consists in part of doubtful native titles bought up by the firm, which should form the subject of a settlement between the Crown and the firm under the Waste Land Ordinance. This, however, need not delay the sale, as Section 45 of the Ordinance gives a clear title to the purchaser, but the Government should be able to claim Buch part of the proceeds sale as may be considered to represent the reasonable value of the Crown interests in the properties.
5. As regards the debts to the firm, I understand that the withdrawal of Mr. Fraser from the liquidators' firm has caused some delay in enforcing the claims in court, but this will be put right under Section 3 of the Enemy Firms Liquidation Amendment Ordinance as soon as it has received His Excellency's assent. The liquidators' lawyers have also brought to my notice that delay may be caused should the court, after entering judgment, give the debtors time to pay; this, however, is a matter over which the liquidators can exercise no control.
6. Subject to these observations, and to the time that has already been allowed to Mrs. Mary de Silva and Mr. Philip de Silva to discharge their liabilities, the liquidators consider that the whole of Freudenberg & Company's affairs can be completely wound up by the end of June.
7. The other firms which have been declared enemy firms are Boysen & Com- pany, Ch. & V. Bohringer, Marinitsch & Company, A. Humbert, Carl Festin, Muller Luedecke & Company, John Hagenbeck, Mrs. Hagenbeck, Carl Hahn, and A. W. Bedemann, the liquidators of which are Morison & Bell.
1
8.
105
In the case of the four first the book debt assets have, we are informed, already been collected, except a few which are in the hands of the lawyers for recovery,
9. The assets of Carl Festin and Muller Luedecke consist chiefly of furniture, the disposal of which will be governed by Section 9 of the Enemy Firms Liquidation (Amendment) Ordinance as soon as it has received His Excellency's assent.
10. In the case of J. Hagenbeck, who has only just been declared an enemy firm, the books have yet to be examined to see what debts are recoverable. The liquidator estimates that two months will be sufficient to collect these assets.
11. The assets of Mrs. Hagenbeck, C. Hahn, and A. W. Redemann consist of estates only, while in addition to the assets above mentioned there is one estate belonging to J. Hagenbeck, one to Boysen, and mills belonging to Boysen & Com- pany and Ch. & A. Bohringer respectively. We are of opinion that these properties may be disposed of in the same manner as those mentioned in Section 4 above.
12. There are three other enemies owning estates who have not yet been declared enemy firms," ie., Dr. Adolph Kuntze, who owns one estate in Kegalla District and one-third share of another (the latter jointly with Ludwig Johannes Litten) in Kandy District, as well as a small property in Galle District, and C. Zoller, who owns an estate. Inquiries are still being made about these properties, and it is hoped will shortly be completed. There is also a small property in Galle District owned by one Anton Genth, late of Wiesbaden, who appears to be a Buddhist priest, and holds it as the nominee of Rodolph Adrian Bergier, of Lausanne.
13. There is the German Club in Colombo, the acquisition of which by Government awaits His Excellency's assent being given to the Ordinance mentioned
above.
14. Lastly, there are the shares owned by enemies in local companies, the dis- posal of which will be governed by Section 3 of the Enemy Property Amendment Ordinance of 1917 now awaiting His Excellency's assent. It is proposed that these shares be placed in the hands of share brokers for sale to the public, subject to the right given by this Ordinance to companies to purchase them. It must, how- ever, be borne in mind that the present time is, owing to the existing financial crisis, unfavourable for the disposal of these shares at reasonable figures, and that therefore there may be delay in selling them unless it is decided to dispose of them at once at whatever prices they may fetch.
15. It may be necessary to seize certain balances shown in Freudenberg & Company's books as due to the Norddeutscher Company, the Deutsches Kohlen Depot, and other German firms whose head offices are in Germany, should it be shown that there are debts due by them to persons in Ceylon who are not enemies or to the liquidators of any of their other branches in other British possessions. This must await His Excellency's assent to the Ordinance mentioned in Section 5 above,
16.
On the whole we are of opinion that all the matters in Sections 7 to 15 above should be capable of final settlement by the end of June next, though it is not possible to make an absolutely accurate forecast.
We are, &c.,
The Honourable
The Colonial Secretary.
22157
No. 87.
CEYLON.
A. S. PAGDEN,
Controller of Revenue.
G. S. SCHNEIDER,
COLONIAL OFFICE to ENEMY DEBTS COMMITTEE (BOARD OF TRADE). [Copy to India Office and Foreign Office, 23rd May, 1917. L.F.] SIR,
Downing Street, 7th May, 1917. WITH reference to the letter from this Department of the 31st March,* regarding the pooling of the assets of enemy firms branches of which may be in liquidation simultaneously in different parts of the Empire, I am directed by the
* 17195,