CO129-440 - Others & Individuals - 1916 — Page 785

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Under Secretary of State

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June 19, 1916.

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referred to above, liesure. Reiss were only to be appointed my Con-. pany's agents.

My spontaneous proposal to the Texas Company was however for Messrs. Reiss to become a party to the Texas contract itself,

thus giving them a far greater hold upon the business than under an ep- pointment as my Company's agents, as arranged.

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1st May 1916: On this date, to the Texas Company's surprise and mine the New York manager of the Hongkong & Shanghai Banking Corporation by instructions from his Hongkong principala, Mr. Holyoak of Hebers, Reisa & Co. being on the directorate of this Bank interviewed the Texas Company and urged Reiss's appointment, stating that it was "ab- solutely necessary" for the Texas Company to make a direct arrange- ment with this firm and that the firm was willing to pay us a return

commi sein.

ment

Then followed the Bank's extraordinary and most damaging state-

in order to further urge Bessrs. Reisa's appointment upthe Texas Company that the Hongkong Government refused port and cable facilities for any agency in which my Company was concerned.

N.B. Up to this date, Messrs. Reiss in London had stated no terms whatsoever as to even only a return commission to my Company, although their Hongkong associate, Mr. Helycak, had accepted the Texas contract jointly with my Company and a half share, as stated.

In fact, Messrs. Reiss were to get the agency and to offer us thereafter their own terms, which we were to take or to leave.

This attempt to obtain the agency in this manner having failed, because of the Texas Co.'s loyalty to my Company, Messrs. Reiss in

London on the:

10th May 1918 at last came forward with an offer, viz: of 40% of the

net profit "after deducting expenses",

N.B. It should be particularly noted that this ambiguous offer was coupled with Messrs. Reise's insistence of my Company's elipi- nation from the Texaa contract.

Between the 10th May and 10th June 1916, and not until the Texaa Com-

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