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PUBLIC RECORD OFFICE

Reference:

C.Q.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

3522

No. 128.

EAST AFRICA PROTECTORATE: ZANZIBAR : NYASALAND: UGANDA.

MEMORANDUM.

EAST AFRICA PROTECTORATE,

PLEASE see attached summary of the information given us in 4147/15-16. For the purpose of ascertaining the position with regard to the available assets of the enemy firms, we must rule out the debts mentioned in column 1 of the summary, since these will not be recoverable during the course of the War. We must also, to some extent, discount the figures given in column 3, since the majority of these will be bazaar debts, which may in part See paragraph 2 of 4147 15/16.

not be recoverable. On the other hand, we can also rule out the liabilities referred to in column 4. If the summary is analysed in this way it will be seen that all the firms mentioned in the summary, except Schweiger's, have a very large balance of assets certainly available (i.e., stock and cash) over non-enemy debts. I have assumed that the liabilities referred to in 4147 represent the total liabilities of the firms concerned, though it is odd that there appear to be no debts to persons in neutral territory except in the case of Hansing & Company, where an unascertainable amount is due to German firms in neutral territory. This amount should, of course, not be paid, and I think we can infer from 4152 that no payment will be made, but we might mention the point tr make sure.

There are also the following enemy firms in the Protectorate, the names

of which we know from other papers :—

(1) Schauer, Welter & Company, Limited. This is a company registered in the United Kingdom, the shares of which are held as follows (see 58906/15) :-

£1,500 by C. Dautzenberg, of Saxony.

£1,500 by H. Dautzenberg, of the East Africa Protectorate.

£4,400 by K. Schauer, of the East Africa Protectorate.

£3,500 by M. Welter, of the East Africa Protectorate.

£4,000 by M. Holzapfel.

£100 by A. Welter, of Odessa.

Total, £15,000

Of these shareholders Holzapfel is a naturalized British subject; Schauer and M. Welter are enemy subjects (see 53415, also 24011, which shows that M. Welter has been deported); and H. Dautzenberg is probably an enemy subject, though wo have no confirmation of this. The probable result appears to be that £10,900 worth of the shares stand in the names of enemy subjects. In 53415, however, it is stated that the greater part of the shares in the name of Schauer and M. Welter belong to Holzapfel. The operations of this company in the East Africa Protectorate were closed by the military authorities at the outbreak of war, and we have hitherto disclaimed responsibility in the matter* (see draft to War Office on 1472/18). The nature of the business is stated in 37399/14, viz., hotel-keepers, outfitters of shooting and scientific expeditions, planters, farmers, etc. The two managing directors were K. Schauer and M. Welter. It is possible that the Board of Trade may take action against this company under Section 1 of the Trading with the Enemy (Amendment) Act, 1916, but I am not clear whether this is possible, since that section refers only to business carried on in the United Kingdom. We might perhaps inquire as to this. †

(2) The East African Trading Company. See 44978/15, paragraph 7 of en- closure), where it is stated that the partnership is largely indebted to the National Bank of India and Messrs. David Sassoon, of England, and are probably insolvent,

*See, however, page 9 of the London Chamber of Commerce circular below. It appears from this that the local Government have now put in a Controller.-C.T.

He thinks that only I have now spoken to Mr. Payne, of the Board of Trade, about this. business actually carried on in the United Kingdom will be dealt with under the Act, but he says We should, however, that they would have no objection to our selling up all the local assets.

tell them of the appointment of a liquidator when we hear of it. and of the extent of the proposed liquidation, and we should now ask the Governor to report as to the exact position.-C.T.

most of their assets being in German East Africa. It was proposed by the Attorney. General that the bank and Messrs. Sassoon should take over the business for the credi tors, but we replied pointing out that this was contrary to our policy and might be undesirable as likely to prejudice the position of the creditors in regard to the assets in German East Africa. In paragraph 3 of 4147 the Governor promises us separate despatch on the subject of this company. On the receipt of that despatch we can now, if we think it expedient in the interests of the creditors, direct the sale of the business as a going concern. It appears from 55702 that this firm were agents for the Clan-Ellerman-Harrison lines.*

a

(3) Max Klein.-This business belongs to a naturalized American subject. Perhaps it would be well to obtain particulars as to the nature of his business and its connexion in normal times with enemy territory.

(4) Meyer & Company. This business is stated in 44978 to be under the super- vision of Messrs. Gill and Johnson. Apparently no steps have been taken to liquidate officially. We should, perhaps, ask the reasons for this, also for particulars as to the nature of the buiness and its connexion with establishments in enemy territory, also whether there are any reasons why the recommendations of the Committee should not be applied in this case.

(5) Denhardt & Company. See paragraph 10 of the enclosure in 44978, where it was stated that the firm had practically ceased business. We have no particulars as to this business, and should perhaps inquire us proposed in connexion with the previous case.

Of the firms above mentioned, Hansing & Company, Oswald & Company, the Africana Company, and Hintzmann & Company have establishments in Zanzibar, where they all appear to have a substantial balance of available assets over non- enemy debts, with the possible exception of the Africana Company (see below as to this). Hansing & Company have also an establishment in Uganda (see 14044/15) which appears to be solvent.

With regard to the constitution of the various firms, it is stated in 8022/15 that the head office of the Africana is in Frankfurt and the head office of Schweiger in Vienna. Oswald & Company are presumably the well-known firm operating in Portuguese East Africa. The bulk of the East African Trading Company's assets are in German East Africa.

ZANZIBAR.

See schedule attached summarizing the information given us as to the financial position of these firms in 46054, 50869, 51051, and 55612. As stated above, Hansing & Company and Oswald & Company have a large balance of available assets over non-enemy debts, the Africana Company have total available assets of Rs.75,000, of which Rs.50,000 represent debts from Indian firms in the East Africa Protectorate and Zanzibar. They have Rs.49,000 of ascertainable debts, and Rs.53,023 of debts for goods shipped to Zanzibar, the East Africa Protectorate, and German East Africa.t In regard to this last item, the claims in respect of the goods shipped to the East Africa Protectorate may have been included in the liabilities of the East Africa Protectorate branch, but claims in respect of, the shipments to Zanzibar from German East Africa apparently have not yet been presented, unless they are included under the heading "Outstanding Bills of Exchange."

If they

are not so included this item may make the Zanzibar branch of this company insolvent. In addition to the firms mentioned in the summary, 46054 refers to establishments of Hintzmann & Company, and the D.O.A.L., which are stated to bave only small liabilities. It appears from 53723 that Hintzmann & Company are not being liquidated. We should inquire for the reasons of this, pointing out that the branch in the East Africa. Protectorate is being liquidated, and asking for a report as to the nature of the business carried on in Zanzibar.

* See now 6791. I have spoken to the National Bank of India about this. They have a floating security over all this company's assets, which they are foreclosing under Order of Court. If there is any surplus they will hand over to the Government liquidator. Messrs. Sassoon have started a new company, which is trying to work the connexions of the old company, but there has been no sale of goodwill, this having no value. No claim has apparently been received in respect of the Rs.14,000 said to be due to a Manchester firm, which is said to be a mere book entry two years old. We need not, I think, interfere with this arrangement, but we should get a confirmation of the above statement.-O.T.

† See now 7254. The shipments to East Africa Protectorate apparently represent £810 158. This would leave about Rs. 41.000 for Zanzibar and German East Africa shipments. I assume that this is the only claim which. Matusch, Goldschmidt & Company have presented in the East Africa Protectorate.-C.T.