CO885-(25-26) — Page 399

383

PUBLIC RECORD OFFICE

19

Reference :-

LC.Q885/25

PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

(Confidential.)

YOUR EXCELLENCY,

244

Enclosure 1 in No. 205.

Port of Spain, Trinidad, 16th July, 1917. WITH reference to the interview which you were so good as to grant to us on the 13th instant on the subject of the realization by the Liquidating Committee of the mortgage debts of the enemy firm of F. A. Neubauer, we beg leave to submit the following representations for your consideration :-

At the outbreak of war these debts were secured by mortgage of the estates and crops of their several owners, who are, all but one, menibers of the Cocoa Planters' Association; they represented a total of about thirty thousand pounds, being the balance then due on account current, and were being gradually reduced by the proceeds of the crops. No pressure was being put upon the owners by Messrs. Neubauer, and, but for the War, the gradual process of liquidation would presumably have continued until either the debts were extinguished or the owners were able to obtain money elsewhere upon less onerous terms, as Messrs. Neubauer realized that the owners could not raise the money to pay them off. That this was their view is shown by the fact that when about a year or two before the War Messrs. Neubauer were calling in every realizable debt they did not press for the payment of these debts.

Now that the mortgages have become vested in the Liquidating Committee the owners have been called upon for immediate payment of the entire amount of the principal debts with interest.

The owners, however, have been advised that interest does not accrue during the period of the War, and they claim that they are not chargeable, while the Con- or at all mittee, we understand, are advised either that interest does accrue events that it should not be conceded that it does not. This results in an uncer- tainty as to the amount of the debts, and adds another difficulty to the others that stand in the way of a settlement, to which we refer later.

We wish to assure Your Excellency that the owners are not seeking to evade payment of their just liabilities. They are anxious to meet them to the full extent of their means, and have no desire to take any merely legal or technical defence, and we feel sure that they will readily accept any adjustment of this point of difference that you may think fair and reasonable. If some arrangement could be arrived at upon the question of interest the amount of the debts could be ascer- tained and the way cleared for a settlement.

As to the terms of a settlement, it should he borne in mind that the owners referred to are people whose entire property consists of their estates, which, in most cases, are their homes; they have no other resources that they can have recourse to for the payment of these debts, and therefore their capacity to pay depends solely on the extent to which they can obtain money on the security of the estates.

In all cases but one there is a prior mortgage, and a second mortgage will be very difficult to negotiate in the existing money conditions of the Colony, and the prevailing uncertainty as to shipping conditions consequent on the War, and we fear that in some cases the owners will be able to borrow but a small proportion of their requirements to effect a cash settlement.

The consequence of failure by the owners to raise the necessary funds will lead to a sale of the mortgages by public auction, with the inevitable result that the debts will be bought at a price representing nothing like their fair value, and not as a genuine investment, but by someone whose object will be to use the mortgage debt as a step towards another sale at no distant date of the property this time, which in its turn will be bought by the second mortgagee at an undervalue. This In unfortunately is the history of a great deal of the land of the Colony. England, where there is a large amount of capital always seeking for profitable investment, an auction fetches a price approximating the value of the property. Here an auction is a farce, there is no competition among the few people with available capital, and the property is almost invariably bought in by the mortgagee. An auction sale is the recognized method by which a mortgagee converts himself into an owner, at a price which has no relation whatever to the real value of the property.

What is required is time, as much as can be allowed, as each crop helps to reduce the debt, and that instalments should be accepted.

245

We venture to suggest, for Your Excellency's consideration, the following as the terms upon which a settlement might be arrived at, and the discredit of a sale avoided

(1) That the debt be stated at the amount due for capital and interest on the 4th day of August, 1914.

(2) That the question of interest be compromised at one-half the rate charge- able under the mortgage at simple interest, and be added to the debt.

(3) That the owners be granted such extension of time as can possibly be allowed for payment of the debt, say, to the 30th day of June, 1918, at least, they paying instalments to be agreed on in the meanwhile.

(4) That a discount of fifteen per centum be allowed for a cash settlement in whole or in part, any balance to bear interest at the rate provided by the mortgage.

seems a fair compromise of a doubtful liability.

(3) and (4) taken together are an attempt to provide an incentive to owners to make the best cash settlement they can, and at the same time they settle the question of interest by making it chargeable in full in the future in the event of a settlement not being arrived at.

A discount is usual in a business compromise for a cash settlement in lieu of a slow liquidation, and we are informed that the Committee has compromised on even more liberal terms with others who are not members of the Cocoa Planters' Association, and that its general policy has been one of reasonable compromise for cash.

We beg to thank Your Excellency for granting us an interview, and for allowing us an opportunity of making these proposals for a settlement for your consideration. We shall be pleased if they help to that end.

We are, &c.,

His Excellency

AUCHER WARNER. C. DE VERTEUIL.

Major Sir John Robert Chancellor, R.E., K.C.M.G., D.S.O.,

Governor, etc., etc., etc.,

Trinidad.

248

Amounts due af declaration of Har.

Enclosure 2 in No. 205.

Statement of MORTGAGE AND CURRENT ACCOUNTS DUE TO MESSES. NEUBAUER & Company, ab at 30TH JUNE, 1917.

30th June 1917. Int.redwed by 1 per motor interest

Interest to be added in accord

Inter due en

Total nem das on food

Total mumm due at simple interest

Tommi vụm with

Interest

the

half the

ance with

Debtors.

(1)

(8)

(4) On Mortgage A On Ourrent A/0 | aoluding interest. including (interest.|

Total.

(5)

ang 30 A

(9)

arrangements with arrangements with L., (5) pium (6). Co.suer & Co.. from declaration of Neubauer & Co.

rate areol spon

less than the rate

fizet by Numbamor.

but only, where the

(7)

rate is more than

4 per cent.

(8)

cat, and honoured in accordance with drafts, on amowa.la after allowing per ebarged by Heubauer,

offer of mortgagor,

with a *

(8)

(or)

(4), in accordance

with offer of mortgagors.

shown in column

(11)

$

+

1 The Trinidad Cocoa & Coffee Co. Ltd.

34,627.16

4,845.74

Plus 24 per cent. commission on Current Ascount

interest according to arrangement 35,472.90

44,551.25)

M/n 4,035.98)

C/a

98.59]

39,607.47

298.10

2 | Joseph d'Abadia†

...

#2

25,269.36

25,269.36

31,819.20)

2,761.20

28,030.56

3

Trustees of C. F. Sellier

Plus 24 per cent.

8

...

4,800.00

Plus 24 per cent. commission on interest according to arrangement

commission on Current Account & interest according to arrangement

161.24)

1,763.41

6,563.41

8,244 76)

0/4

205.53] M/s 559.46)

7,828.40

86.111

4

A. A. Sobrian

5

Executors of C. G. Schoult...

...

...

...

#2

7

4,672.16

21,859.95

4,672.16

27,093.54

1,028,91

...

Plus 2 per cent. commission on Current Account & interest according to arrangement

42.52) 5,701.07)

476.47 2,888.66

5,148.69 24,248.61

4,610.30

30,745.49

6

Carl de Verteuil

...

...

920.43

1,596.64

25,638.19

142.40}

354.60]

C/a

160

187.83 M/s 2,189,321 C/a 67.033

28,082.37

Plus 24 per cent.

commission on Current Account & interest according to arrangement

190.60

$119,475.97

868.07 $147,655.31

† Paid $472.58 Interest from 2nd October

7th August, 1917.

31st December, 1916.

$141,075.62

D. SLYNE,

$132,445.04

Receiver General,

Chairman, Liquidating Committee.