CO129-424 - Governor Sir May - 1915 [9-10] — Page 122

COPY.

C.O

49465

113

RECE

Extract from Semi-official letter from London7d9d51kth.

August, 1915.

Leopold Casella & Co.

Hamburg, dated May 10th. that Leopold Casella & Co. have placed an

embargo on our balance at the Reichsbank to the extent of lks.

900,000 on account of proceeds of stocks which they claim were deposited with you by Sander "ieler & Co.

You will see from the enclosed letter from

If therefore the Government insist upon

your investing any monies you may hold on account of Leopold

Casella in the new War Loan it seems only reasonable that the bonds

should be deposited with us and I shall be glad, should the eventuality arise, to do what I can on this side to give effect to your views.

Letter No. 51/209 from Hamburg Office to London Office.

The Kanager,

London.

Dear Sir,

10th. May, 1

,1915.

Leopold Casella & Co. GmbH Frankfurt a H.

This firm has laid an embargo on our balance at the Reichsbank to the extent of M. 900,000 to secure their ultimate receipt of proceeds of their stocks which they claim were deposited by Sander Wieler & Co., Hongkong, with our Head Office to be realized for the credit of Leopold Casella & Co. This in itself would not cause us any inconvenience, but it is of course a matter which may involve immense issues. We have therefore tried to com- -promise with the firm, but they insist that we pay them at least the amount that had been paid in to their credit at our Head Office by the first of this month, and suggest that we should wire to Shanghai and enquire the figure. Te leave you to do this, and advise us if you think fit. We suggest, however, meanwhile that you authorise us to give the firm an undertaking to pay them the amount immediately after the war, advising us the same time what the amount is.

We understand that part of the amount is with Head Office and the rest with you it having been remitted to you by T.T. It is possible that if we can offer the firm such an undertaking and interest at moderate rate, they may be prevailed upon to withdraw their embargo. Even this however is very doubtful, as in the view of the present situation their object is to secure themselves on- -conditionally against possible eventualities, out of our present assets, before these are otherwise appropriated.

Yours faithfully,

Manager.