119
320
PUBLIC RECORD OFFICE
Reference :-
mco.885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
6. Owing to the perishable nature of some of the stock kept by the above firms, and the danger of destruction from damp, white ants, and other concomitants of the tropics, it was considered advisable that the above action should be taken as a step towards the final liquidation of the firms.
7. There remain at Mombasa, beside the firms mentioned, two firms, i.e., the East African Trading Company and Messrs. Max Klein, whose actions have not been interfered with. The East African Trading Company, which is, in fact, a partnership of two Austrian subjects, Messrs. Marcus and Lowy, is largely indebted to the National Bank of India and to Messrs. David Sassoon, of London, and, so far as one can tell by the documents submitted, they are insolvent in this It is, therefore, country, most of their assets being in German East Africa. inadvisable to take any sudden step towards liquidating this firm, without at the same time seriously injuring British creditors. The firm has, I am informed, no branch outside East Africa. I have suggested to the bank and to Messrs. Sassoon's correspondent, who is keeping some sort of control over the firm, that the best scheme is for the creditors to take over the firm from whomsoever may ultimately be appointed to liquidate it, provided there is some safeguard that the business will not be handed back to its original owners after the conclusion of hostilities.
8. Messrs. Max Klein's agent has produced proof that Mr. Max Klein is a naturalized American subject. It is, therefore, necessary to deal somewhat
cautiously with this business.
9. In Nairobi Messrs. Charles Heyer & Company are at present being super- vised by Messrs. Gill & Johnson, and regular balance sheets are returned.
10. At Lamu Messrs. Denhardt & Company has practically ceased business. 11. In view of the apparent intention of the Secretary of State and the course of conduct pursued in West African Colonies and Protectorates, it is pro- posed to introduce legislation giving power to liquidate all enemy firms and to proceed to such liquidation as speedily as possible.
J. W. BARTH,
44978
No. 110.
EAST AFRICA PROTECTORATE.
Attorney-General.
THE SECRETARY OF STATE to THE GOVERNOR.
[Answered by Nos. 125 and 126.]
Downing Street, 30th October, 1915.
(No. 799.) SIR,
I HAVE the honour to acknowledge the receipt of your despatch No. 641, of the 25th of August,* on the subject of the liquidation of enemy firms in the Protectorate.
2. You will have observed from my telegram of the 11th of Septembert that the suggestion that the goodwill and assets of the East African Trading Company should be sold to the creditors of the firm would be contrary to the general policy of His Majesty's Government, and, before deciding whether an exception can be made in this case, I should be glad to be informed more exactly as to how the affairs of the Protectorate branch of the Company stand, and it will also be neces- sary to consider how far a compulsory sale of the goodwill to the creditors might prejudice their chance of recovering any unpaid balance of their debts from the establishment in German East Africa after the War. Possibly, however, the inten- tion is that the sale should be in full discharge of all claims by the creditors.
3. I shall be glad to receive your views on the points raised above, and in particular I shall be glad if you will furnish me with an approximate estimate of the assets and liabilities of the enemy firms, distinguishing in the case of the liabilities the commercial domicile of the various creditors.
I have, &c.,
A. BONAR LAW.
51899
No. 111.
EAST AFRICA PROTECTORATE.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 11.46 p.m., 10th November, 1915.)
No. 374.
TELEGRAM.
With reference to your telegram 28th October,* everything possible being done to divert business of enemy firms to local British houses, and samples and information are being furnished to them and to Chamber of Com- merce. Neutral importers are, however, reluctant to make permanent arrange ments to the exclusion of former enemy agents.-BELFIELD,
53415
SIR,
No. 112.
EAST AFRICA PROTECTORATE.
MESSRS. CRIDDLE & CRIDDLE to COLONIAL OFFICE. (Received 18th November, 1915.)
[Copy to Governor, 30th November, 1915, No. 873. L.F.] [Answered by No. 113.]
Northern Assurance Buildings, 2, Collingwood Street,
Newcastle-upon-Tyne, 17th November, 1915. Schauer, Welter & Company, Limited.
On the 29th September last we addressed a lettert to you on behalf of our client Mr. Max Holzapfel, of this city, as to the action taken with regard to the above-mentioned Company, to which we received a reply from the Colonial Office on the 6th Octobert to the effect that the Governor of the East Africa Protectorate would be asked to furnish a report, although the matter would be left entirely to his discretion.
We had hoped ere this to have received some account of the action taken and the reasons therefor.
We are now informed by Mr. Holzapfel that when he received news that the Company's property at Kijabe Hill had been closed by the Protectorate he instructed Messrs. Gill, Wheelock & Johnson, the accountants and auditors of the Company, to offer the place as a convalescent home for British officers and men, but that he received no communication as to whether the offer had been accepted or not. Some time later the military authorities took possession of the place, as Mr. Holzapfel thought in response to his offer, but he is now informed that he has been under a misapprehension and that the military authorities have commandeered the place, regarding the property as enemy property. Mr. Holzapfel naturally, under these conditions, feels much aggrieved that his offer appears to have been entirely disregarded, and fears that he himself is treated as a suspect in connexion with the Company.
Under these circumstances, Mr. Holzapfel wishes to further explain his own personal position with regard to the Company and to ask for some explanation why it has been deemed necessary to take such drastic steps.
It was owing to his having financed Messrs. Schauer & Welter (who, we under- stand, are German subjects), and owing to their requiring still further financial assistance, that Mr. Holzapfel deemed it advisable to have a company formed to take over the concern, so that his interests would thereby be better protected, and we accordingly caused the Company to be formed in the year 1911. All the shares in Welter's name belong in effect to Mr. Holzapfel, as do the bulk of the shares standing in the name of Schauer, besides which the Company is largely indebted to Mr. Holzapfel for advances made to it.
Mr. Holzapfel himself is a naturalized British subject, he having been natu- ralized thirty years ago, namely in 1885, and having as far back as 1878 abandoned his German nationality.
* No. 109.
+ No. 108.
*
48954.
+ 37999/14.
+ 37939.