CO885-(15-16) — Page 583

PUBLIC RECORD OFFICE

TITLC.O.885

ستان.

Reference :-

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

16 PUBLIC RECORD OFFICE, LONDON,

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Subsequently Messrs. Plettner put in a claim for 2,565 marks (£428) for the execution of the plans plus interest at 5 per cent. from the 1st April, 1900.

[Paper (C).]

Claim of Herr Kraeber.

On the 6th April, 1899, Herr Kraeber, of Nordhausen, a German surveyor of mines, was instructed by the Government of the South African Republic to give any information which might be required to the firm of Plettner Brothers, of Halle, who were engaged in printing model plans of mines for that Government, and, if desired, to proceed to Halle for a personal discussion of the subject. His expenses and fees were to be assessed at the rates prevailing in Germany for mining engineers.

His

Kraeber carried out his instructions up to the end of January, 1900. duties consisted in reading the proof sheets and carrying on a continual corres pondence with the firm of Plettner Brothers, and he also undertook a journey from Kohlscheid, near Aix-la-Chapelle, where he was living at the time, to Halle, in order to have a personal interview with Messrs. Plettner.

In due course Kraeber forwarded his account, amounting to 480 marks (£24), to The latter the Corisul-General of the South African Republic at Amsterdam. acknowledged receipt of this account on the 31st January, 1900, and stated that it would be forwarded to his Government.

Kraeber, however, was unable to obtain any payment from the Government of the South African Republic; but, in reply to a reminder addressed to the Consul- General of the Republic at Amsterdam, was assured, in a letter dated the 2nd December, 1901, that the statute of limitations would not be invoked with regard to his account.

Since the incorporation of the South African Republic in the British Empire Kraeber approached the German Government with a view to their obtaining the pay- ment of his claim, stated to be due to him by the British Government as the legal successor to the obligations of the South African Republic.

[Paper (D).}

Claim of the Association of Hamburg Underwriters.

The Association of Hamburg Underwriters took over in May, 1899, on account of the Dresdner Bank under a current policy the insurance of the carriage of raw gold from South Africa. The insurance policy came into force on the 13th May, 1899, and covered all risks of carriage from the moment when the gold was taken from the coin plates.

At the beginning of 1899 the Dresdner Bank had entered into communication through their branch establishment in London with their agents, the General Mining and Finance Corporation (Limited) in Johannesburg, in regard to the purchase on behalf of the Deutsche Reichsbank of the gold produced by various mines connected with the General Mining and Finance Company. The negotiations were concluded by a written communication, dated the 22nd April, 1899, from the branch establish- ment of the Dresdner Bank in London and their telegram of the 12th May, 1899. The General Mining and Finance Company were instructed thereby to commence shipment of the gold as soon as possible. As far as the telegram dealt with the insurance, it served to inform the General Mining and Finance Company that the The policy had been taken out at the rate of 3s. 6d. per £100 to cover all risks. Dresdner Bank declared their readiness to take, if necessary, 1s. per £100 of this themselves, while the rest of the amount to be paid as insurance was to be deducted on account of the mines in the final settlement of the purchase price.

In a letter dated the 15th May, 1899, the General Mining and Finance Company informed the branch of the Dresdner Bank in London that they would at once instruct a number of mines to ship their gold production to the head offices of the Reichsbank at Hamburg. The branch of the Dresdner Bank received this letter at the beginning of June, 1899.

The General Mining and Finance Company thereupon concluded the purchase of the raw gold of the mines through their mainman [sic] (? President) and Managing Director, George Albu, who was at the same time Managing Director of the gold

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mines in question, and who arranged verbally with the Bank of Natal at Johannes- burg that the latter should receive the bar gold to be sold to the Dresdner Bank from the following mines :-

Aurora West United Gold Mining Company (Limited),

Van Ryn Gold Mines Estate (Limited),

New Goet Gold Mines (Limited),

Meyer and Charlton Gold Mining Company (Limited),

Roodeport United Gold Mining Company (Limited),

The

and should ship it to Hamburg to the head-quarters of the Reichsbank there. Bank of Natal were further, on delivery of the gold to them, to discount the bills drawn by the mines on the branch of the Dresdner Bank in London.

fied.

On the 2nd and 5th October, 1899, the quantities of gold quoted in Enclosures 4 to 7 according to weight, marks, and packing, were delivered from the mines speci- The Bank of Natal received the gold and furnished certificates as to its delivery, which certificates were annexed by the mines to the bills drawn by them against the gold on the branch of the Dresdner Bank in London, These bills. payable at sight, amounting in all to £35,600, were discounted by the Bank of Natal and sent to the branch of the Dresdner Bank in London, which met them on the 24th October, 1899.

The gold bars were packed in cases and despatched by the Bank of Natal, and every case was marked with the name of the mine from which the gold it contained had been extracted.

On or about the 10th October, 1899, the Government of the then South African Republic seized the whole of the gold delivered to the Bank of Natal for the Dresdner Bank, viz. :-

(1) Sixteen cases of raw gold (5,995 90 oz.) which were in the mail train at Vereeniging Station, on the Netherland South African Railway Com- 'pany's system.

(2) Nine bars of gold (3,424 oz.) at the Bank of Natal in Johannesburg itself;

or together, 9,419 90 oz. of battery and cyanide gold of a total value of 712,762 marks (£35,638).

The seizure of the gold was effected on the ground of a Decree issued on the 27th September, 1899, by the Administrative Council of the South African Republic to the effect that gold extracted by mine owners in time of war must be deposited for At the close of the keeping with the Government of the South African Republic. war the gold, or its value, would be returned to the rightful owners after certain deductions to be fixed by law.

A further Decree of the Administrative Council; dated the 12th October, 1899. laid down that during the war all raw gold found or extracted in the South African Republic must pass through the hands of the head of the Mines Department, who would furnish an official acknowledgment of the receipt of the goods.

In execution of this latter Decree, receipts were furnished by the head of the Mines Department on the 5th and 20th November, 1899.

A further notification on the part of the Government of the South African Republic that they would return or refund the value of gold which had been seized is contained in a letter dated the 12th October, 1899, from Secretary of State Reitz to the then Imperial German Consul at Pretoria, who had, on the 6th October, 1899, In this letter already protested verbally and in writing against the seizure. Secretary of State Reitz stated that the gold could not be released, the intention being to retain it till after the war and then to return it to its legal owners.

The losses, amounting to 712,762 marks, incurred by the Dresdner Bank through the seizure of the gold bars, were refunded to them on the 24th October, 1900, by the insurers the Association of Hamburg Underwriters.

Of the seized gold bars, one and a half bars, which were found after the close of the British South African war in the mint at Pretoria, were handed over to the branch of the Dresdner Bank in London by the British Government. The value of this gold amounted to 72,844 35 marks (£3,642), and this sum was refunded to the Association of Hamburg Underwriters. The actual losses, therefore, amount to 712,762 less 72,844 35 marks 639,917 65 marks (£31,995).

The claim of the Dresdner Bank against the South African Republic for a refund is, in consequence of the payment made by the insurers-the Association of Hamburg Underwriters-transferred to the latter by legal cession.

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