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PUBLIC RECORD OFFICE

Reference :-

CO.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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capital, which they required for their own manufac- turing purposes, they have founded participation and financing companies which advanced the capital for numerous local electricity works and remained partners to them. In this manner there were founded by the manufacturing companies the Deutsch-ueberseeische Elektrizitaetgesellschaft, the Bank fuer Elektrische Unternehmungen, the Schweizerische Gesellschaft fuer Elektrische Industrie, the Continental Company for Electrical Enterprises, the Elektrische Licht und Kraftanlagengesellschaft, the Gesellschaft fuer Elek- trische Unternehmungen, and numerous others, which, together with the mother companies and branch com- panies of their own, represent world-embracing con- cerns. It is, perhaps, not saying too much that the concern of the Allgemeine Elektrizitaetgesellschaft is the most international business organization in the world, and in this respect surpasses not only the Ameri- can mother company-the General Electric Company-- but probably also the Standard Oil Company.

Proceeding now to the question as to which German business branch, regarded from the latter point of view, that is to say, with respect to the inter- national nature of its associations and enterprises, takes the second place, even connoisseurs of German economic conditions will, perhaps, be surprised to see this place given by us to the metal trade, and, more particularly, besides the iron trade, to the trade in copper, zinc, lead, and precious metals, the last-named trade having its chief centre in Frankfort-on-Main. However, we believe to be able to prove our statement with some certainty by the subsequent details about the organization of the largest German concern in the metal trade.

a

The trade in metals is exceedingly concentrated in Germany as well as in the most important other countries interested in that trade. We need not deal here with the iron trade, for the reason that in Germany iron ore or pig fron is made the object of a trade only in a very limited degree, it passing as rule directly from the producer to the manufacturer. The trade in products of the heavy iron industry, such as girders, rails, rail- way sleepers, etc., is rather limited to local, or at least national, markets, and is subject to quite other condi tions than the rest of the metals. Nor are we dealing here with the gold trade; for the latter, unless in cases where it is carried on by the banking houses, is of almost no importance in Germany, and has its seat almost exclusively in London; the German gold industry importing no bullion, but using chiefly twenty- mark pieces.

There remains, therefore, the trade in copper, lead, and zinc, as also in silver, tin, mercury, antimony, and aluminium. There are in the principal producing and consuming countries a small number of firms who control this trade, and some of whom are standing in very close relations to each other. They

are for the most part private firms, but, even in those cases where they have formed into companies, their capital as a rule remains in a few hands, and is not introduced at the exchange. That is the reason why there is little known about the internal affairs of these concerns and of their mutual relations. In Germany the centre of this very wealthy and influential trade

6380-8. Wt. 58186/1010, 60. 2/16.

J. J. K. & Co., Ltd.

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is, as we have said above, Frankfort-on-Main, in which city its two leading representatives-The Metall- gesellschaft and the firm of Beer Sondheimer & Com- pany-have their seats.

The concern of the Metallgesellschaft, especially, the most international enterprise in Germany beside the A.E.G. (Allgemeine Elektrizitaetgesellschaft) and, perhaps, the firm of Siemens & Halske, and for this reason, as also on account of the nature of its development, it is of a great national-economical im- portance. In this concern it is clearly obvious how, in spite of all stock-capitalistic participations and all joint stock companies, it is to a large extent the person- ages who create the union. Thus, the Metallgesellschaft in Frankfort-on-Main has sprung from two sources, The founder of a personal one and a material one. the Metallgesellschaft is Dr. Wilhelm Merton, of Frankfort-on-Main, who is widely known on account of his extensive philanthropical and social work and his great donations. In his person are centred even to this day the whole of the vast enterprises which are connected with the Metallgesellschaft, the whole con- cern being united, as was mentioned above, hy personal relations. For this reason one may as well speak of the Merton concern, a name which is not as generally known as that of the Princes concern, but which very likely equals the latter with regard to national- economical importance. Wilhelm Merton was born in England, and is the descendant of a German Jewish family. His father was already owner of the firm of Henry R. Merton & Company, in London, which is still regarded as the leading metal company in England, and, together with the Metallgesellschaft, Young stands at the head of the whole concern. Wilhelm Merton entered the business of an old and reputed metal trading firm in Frankfort-Philipp Abraham Cohen's-with the owners of which the Merton family was connected by friendly relations of many years' standing. The firm of Philipp Abraham Cohen is also partly the originator of another large Frankfort metal firm-The Deutsche Gold und Silber- scheideanstalt-in whose business the metal trade. however, takes the second place, the extensive produc- tions in the chemical line, to which this company owes its enormous success (50 per cent. dividend paid in 1911/1912), forming the principal business branch. The Deutsche Gold und Silberscheideanstalt, which was established as early as 1872 by the firms of Fr. Rossler Sohne and Hector Rossler (families of that name are still the chief shareholders), took over in 1873 the precious metal business of Philipp Abraham Cohen. The rest of the metal trade of the latter firm passed over-and this is the material origin of the con- cern to the Metallgesellschaft, which was founded in 1881, and at the beginning owned a capital of two million marks. The new company soon enlarged its business sphere very considerably and with great suc- cess. The share capital was gradually raised to fifteen million marks. The dividend, it is true, was rather fluctuating. In 1888 the company paid 34 per cent.. In the succeed- and in the following year 13 per cent. ing years to 1911-12 the dividends amounted to 20 15, 15, 14, 14, 18, 20, 20, 20, 15, 25, 16, 16. 18. 24, 24, 25, 30, 30, 24, 24, and 28 per cent. respectively. Up till