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PUBLIC RECORD OFFICE

C.O.

Reference :--

885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

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In reply, I am to request you to lay before Mr. Secretary Bonar Law the following observations.

In considering the similar problem in the case of assets of businesses in this country which have been dealt with under the Trading with the Enemy Acte, their lordships were of opinion that it was not practicable at the present time to come to a decision as to the ultimate destination of interest on money placed in the hands of the Custodian. It is probable that, after the conclusion of the War, this question will be a matter for negotiation with the enemy Governments, and in that case the action taken by those Governments in the corresponding cases of British- owned money and property must be taken into account.

In the circumstances it has been decided to invest the money, and, having regard to the special responsibilities of His Majesty's Government, my lords have directed that the investments be confined to British Government securities. They think it would be of advantage if a similar course were followed by Colonial Governments.

For this purpose my lords do not think that any distinction need be made between securities issued before, and those issued during, the War, except that those particular securities which are least liable to fluctuations of capital value appear to them to be most suitable.

The question of the treatment of any ultimate profit or loss upon the realiza- tion of securities is closely bound up with that of the treatment of interest, and my lords are not in a position to give a final opinion upon the point at the present time.

Copies of the Trading with the Enemy Acts are enclosed herewith.

Their lordships would be glad to be informed of the decision arrived at by the Secretary of State, and they think it would be desirable that such decision should be communicated to the Governors of His Majesty's oversea dominions generally.

I am, &c.,

JOHN BRADBURY.

3523

No. 168.

MEMORANDUM.

THE German element in British West Indian trade appears to be of com- paratively small importance; even in the case of the few German firms that existed there seems usually to be a closer connexion with the United States than with Germany. Of course the United States interest is in such cases German-American, but the connexion between Germany and the West Indies is indirect, and has not anything like the importance which the German influence has in the Far Eastern and West African Colonies.

The following is a summary of the enemy firms in the West Indian Colonies and the action at present taken with regard to them so far as particulars are available:

1. JAMAICA.

I-Hamburg-Amerika Company. This company possesses property of the following description in the Colony (see Attorney-General's report in 52968/15):—

Office furniture, stores, etc.

A steam tender.

A slip dock.

(d) A pier, leased jointly with the Atlas Company from the Government.

The action taken with regard to these items is as follows:-

(a) Particulars as to this property have been returned to the Custodian of

Enemy Property.

(b) This has been taken over by the local Government. This has been taken over for military purposes.

(d) An arrangement has been made by the local Government with the Atlas Company, an affiliated company of the Hamburg-Amerika, but regia- tered in the United States, by which the Government is to use the pier during the continuance of the War, but the Atlas Company may resume possession on giving three months' notice after the War. (See 52015/14.)

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II.-Wessels Brothers & Von Gonthard. This firm appears to be a branch of Wessels Kuhlenkampf & Company, of New York. The partners appear to be Von Gonthard, an enemy subject, apparently resident in the United States (see 30753/15 Secret), and Louis Wessels, the senior partner, a naturalized British subject. Wessels was deported with his two German clerks shortly after the outbreak of war, and the business is being carried on by a nephew of the same name, who is said to have severed all connexion with the United States firm. do not know the nationality of the nephew. (See 52968/15.) The firm has a branch in Trinidad, the position of which is stated under the heading "Trinidad below. III. Sigismund von Bruhn & Company.-This business appears to have belonged entirely to S. von Bruhn, who was a naturalized United States subject. He was ejected from Jamaica shortly after the outbreak of war, and his business has been liquidated by his creditors, the Government having taken no action. There is supposed to be a deficiency of assets, but nothing is said with regard to liquida- tion of goodwill or real estate. No doubt if these have any value the creditors will have attempted to dispose of them. (See 52636/15 and previous papers.)

*

IV.-J. H. Milke & Brother. This is apparently a small jeweller's business, which on the outbreak of war belonged to O. Milke, who was deported. The busi- ness is now being carried on by his son, a natural-born British subject. (See 52968/15.)

V. Messrs. Finke.-This firm ceased to do business on the outbreak of war. It seems likely from 52968/15 that they were an agency for a head office operating in enemy territory. Their representative in the Colony is stated to have transferred to the Custodian certain moneys of the firm in his hands, and a few debts have been paid to the Custodian. Nothing is said as to goodwill or real estate.

There is no winding-up legislation in the Colony, and on 37708/15 the Governor indicated that he did not think it desirable to introduce a system of liquidation. We replied, pointing out certain considerations which might make liquidation desirable.

2. TRINIDAD.

I.-P. H. Scheerer & Company.—This firm is the subject of diplomatic claims, (See 4498/16 and previous papers.) It seems plain that we cannot make any change in the system of liquidation at this time, but the following details in connexion with the firm are of interest.

The partners were P. H. Scheerer, a naturalized United States subject, and an enemy subject called Kocher. There were also a number of Germans on the staff. (See 49088/14.) The business was a large and prosperous one.

The prin- cipal items of its trade, in the order of their comparative importance, were as follows. (See 37032/15 and 56043/15) :-

(a) Export of cocoa, the bulk of which went to the United States, a small quantity direct to Germany, and a larger quantity to the United Kingdom.

(b) Cedar. This business was mostly done with Germany.

Local financial business.

(d) Agency of the Hamburg-Amerika Line.

Agency of Morris & Company, the United States meat packers.

(Agency for two German insurance companies.

(g) Local trading.

The firm appears to have been financed to some extent by a German bank, Haerle & Company.

It appears from 44546/15 that the business premises of the firm have been surrendered to the landlord, and 54998/15 suggests that the goodwill has not been sold, since Mr. Scheerer complains that the liquidation has destroyed the goodwill of the business, which was, he states, of great value.

Mr. Scheerer owns cocoa plantations, which are being treated as his private property and not liquidated.

II-Wessels Brothers & Von Gonthard.-There does not appear to have been a resident partner of this firm, but the manager and two confidential clerks were Germans and were arrested on the outbreak of war. (See 46626/14.) W. Wessels, junior, a native-born United States citizen, who had no interest in the

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