215
368
35186
No. 177. JAMAICA.
FOREIGN OFFICE to COLONIAL OFFICE.
(Received 26th July, 1916.)
Foreign Office, 25th July, 1916. SIR,
I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your letter of the 30th ultimo,* transmitting a copy of correspondence with the Governor of Jamaica relative to the liquidation of enemy firms.
Sir E. Grey concurs in the action which Mr. Bonar Law proposes to take, as described in paragraphs 4 and 5 of the above-mentioned letter.
35186
No. 178.
JAMAICA.
I am, &c.,
A. LAW.
THE SECRETARY OF STATE to THE GOVERNOR. (Confidential.)
Downing Street, 10th August, 1916. SIR,
I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 20th of May,† relative to the liquidation of enemy firms in Jamaica, and also of your despatch No. 245 of the 26th of May, submitting for the signification of His Majesty's pleasure copies of a Law (No. 29 of 1916), passed by the Legislature of the Colony, providing for the winding-up of the businesses of such firms.
2. I observe from paragraph 5 of your despatch of the 20th of May, and the minute of the Attorney-General enclosed therein, that before the War the firm of Wessels & von Gonthard consisted of three German subjects, apparently domiciled in New York, and another German named Louis Wessels, naturalized in Jamaica. This partnership was dissolved some time after the outbreak of war. and Louis Later on he admitted his nephew, Walter Wessels took over the Jamaica business. John Wessels, who is believed to be a natural born American citizen, as a partner in the Jamaica business. As at present constituted, therefore, the firm consists of a neutral partner and a British subject naturalized in the Colony. I further observe that Louis Wessels has been treated as a German in Trinidad, where he also has a business. Light is thrown on the enemy association of Louis Wessels and his former partners in New York by your despatch No. 493 of the 17th November, 1914.§ in which you reported on the arrest of the former under the Official Secrets Act
3. The firm of Wessels & Nephew as at present constituted could no doubt be dealt with under section 3 (e) of Law 29 of 1916, as the Attorney-General points out in the third paragraph of his minute of the 14th April; or probably under section 3 (b) or 3 (c) if the firm is carrying on trade for the benefit of any of the former German partners in New York. But, although section 4 of the Law provides that the Colonial Secretary's certificate shall be conclusive evidence of enemy character or association for the purposes of section 3 (e), I do not consider that the firm should be deprived of the opportunity, if desired, of contesting the allegation A similar provision in the law of of enemy association in the local courts. Trinidad was repealed for a like purpose. Also, although (as appears from the Report of the Attorney-General on the Law) section 4 was in fact based on section 3 of the Straits Settlements Ordinance No. 29 of 1914, I would point out that the Governor of that Colony has been instructed to modify that Ordinance on the lines of section 3 of the Hong Kong Ordinance No. 28 of 1914 (a copy of which is enclosed), which makes the certificate of the Colonial Secretary prima facie evidence of enemy character and puts the onus of proving the contrary' upon the alleged alien enemy.
* No. 175.
| No. 178.
* 27981.
§ 48167/14.
4. I request that section 4 of the Jamaica Law may be amended on similar lines, and I request that you will proceed accordingly before action is taken
under it.
5. As to section 5 of the Law, 1 note that it closely follows section 4 of the Straits Settlements Ordinance No. 29 of 1914, without any regard to the important amendments introduced by section 2 of the amending Ordinances No. 1 of 1915 and No. 19 of 1915 (copies of which are also enclosed). In particular I would call attention to section 4 (11) in the Straits Settlements Ordinance concerning liquidators expenses and remuneration, and section 4 (12) relating to priorities It will be observed that the commission for the liquidator, originally two-and-a- half per cent., as in Hong Kong, was increased to a maximum of three per cent. by Ordinance No. 1 of 1915. Sub-section 9 of section 5 of the Jamaica Law pro- vides for a maximum commission of six per cent.; and this maximum is, in my opinion, far too high, and should be reduced. Sub-sections 9 and 10 of section 5 of the Jamaica Law should, therefore, be amended on the line of the Straits Settlements Amending Ordinances in regard to the above-mentioned points, but I leave it to your discretion to decide whether any of the other amendments made in the Straits Settlements law should be adopted in the case of the Jamaica Law.
When the Law has been amended you should take action against Wessels & Nephew under section 3 (e) in any case; and, if you and your legal advisers think a case can be made out, also under section 3 (b) or 3 (c). I have further to authorize you to take action against the other German firms in question.
6.
7. I have also received your Confidential despatch of the 26th of May,* in reply to my Confidential Circular of the 28th March. The further alterations of the Law indicated in the Attorney-General's minute of the 11th of May will no donbt be dealt with, if necessary, at the same time as the amendments indicated in this despatch.
8. In the meantime I shall refrain from tendering any advice to His Majesty in regard to Law No. 29 of 1916.
45932
No. 179.
TRINIDAD.
I have, &c.,
A. BONAR LAW.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 25th September, 1916.)
(Confidential.)
SIR,
I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 25th of July, 1916, regarding the liquidation of enemy firms in Trinidad. I shall deal seriatim with the points to which you have directed my attention.
2. The members of the mercantile community whom I have consulted on the matter share the view expressed by the Chairman of the Liquidating Committee that cocoa estates sold at the present time would fetch much less than their real value; it is therefore inexpedient to attempt to dispose of them before normal conditions are restored.
Government House, 2nd September, 1916.
3. Messrs. Neubauer & Company hold unencumbered cocoa estates valued at £7,712, and encumbered estates valued before the War at £69,054. The encum- brances on the latter estates amount to £47,762, and of this sum £25,201 is due under first mortgages on four estates which, according to accounts furnished by Mr. de Verteuil, who is managing these estates under licence from the Governor, are not paying interest and working expenses. In the case of six estates on which Messrs. Neubauer & Company have second or third mortgages amounting to £27,500, about £22,000 could be recovered. These estates are now being carried on by the mortgagors, who ceased to pay interest on Messrs. Neubauer & Company's mortgages on the outbreak War. The arrears of interest now amount to £4,000, and the question as to whether they are recoverable is dealt with in para- graph 5 of this despatch. To these mortgagors and others Messrs. Neubauer had
‡ No. 176.
* 28008.
† 9917.
PUBLIC RECORD OFFICE
Reference :-
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO