CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 297

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broke out Mr. Moller, who was not previously a ship-owner, began to speculate in ships and rapidly accumulated a fortune ;

incidentally he gained considerable notoriety in Shanghai by

building a palatial residence at a cost reputed to be well over

half a million dollare.

4.

Mr. Moller's methods of finance are illustrated

in the enclosed schedule of Companies registered by him in Shanghai from 1915 onwards, to which list may be added Messrs.

Moller and Company (Hongkong) Ltd. His method of dividing

potential liabilities among a number of one ship limited liability companies had obvious advantages from his point of view, as his creditors discovered later.

5.

At the end of the war Mr. Moller was possessed

of very considerable means, but his subsequent management of his affairs was not successful. Creditors began to ask questions and Mr. Moller, who to all appearances was still a rich man, looked round for a scape-goat and chose the Hongkong Government, which might be trusted not to have recourse to the inconvenient retort of a libel action, and even, if Mr. Moller'd luck held, might not retort at all. The case made out against the Hongkong Government was sufficiently plausible to gain wide acceptance, more especially as it had the support of Mr. Burkill,

6.

Mr. Burkill is a man of quite different type,

and is generally well spoken of in Shanghai where he has a considerable import and export business. Prior to the war he had no experience in matters connected with shipping, and it is widely suggested that his present association with Mr. Moller is due to his ignorance of the subject.

I have the honour to be,

My Lord Duke,

Your Grace's most obedient

humble servant,

7.2. Stubb

Governor, &c.