HOW GERMANY TREATS BRITISH FIRMS

Dominion, Volume 9, Issue 2712, 6 March 1916, Page 6

HOW GERMANY TREATS BRITISH FIRMS

RETALIATORY METHODS

MERCHANT'S EXPERIENCE

Writing to the Loudon "Daily Chronicle," Mr. Frederick William Hansou, 38 Lcadenliall Street, London, jays: At tlio outbreak of war I was domiciled as a British merchant in HamUirg. I was trading under the style of "Fredk. Win. Hanson," and was also acting—since 1897—as agentgeneral and manager of the British firm of Win. F. Malcolm and Co. in Hamburg. a branch office of the same firm in London. Both my own firm and that of Messrs. Malcolm were registered at the courts of Hamburg (Handelsgericht) in accordance with the requirements of German law. In the month of August, 1914, our business was not iu any way interfered with, except that by proclamation the export of raw jute was prohibited. I was largely interested in this, as I was for Messrs. Wm. F. Malcolm and Co. by far the largest jute merchants in Germany. I was, however, permitted to trade within the limits of 'the German Empire, and as I heard rumoura that the German Government intended to attach all stocks of raw jute owned By Eritish firms, 1 realised all my principal's stocks to .save them from attachment. I sold the last parcel on September 7, 1914. On September 9, 1914, early in the morning, a man appeared at my office and read to me and to my staff, a proclamation by the Sene'te of the Repuolic of Hamburg, according to which he was appointed supervisor to tlio firms of Wm. F. Malcolm and Co. and Fredk. Wm. Hanson. The document stated that I had to ohey him and take his instructions under a penalty—if I Temember rightly of M.20,000 and-or two years' hard labour. He thereupon ordered me to hand over all books and papers relating to tho businesses of Wm, F. Malcolm and Co. and Fredk. Wm. Hanson. Books and Papors Removed. He ■ took all my account books, letters, letter books, accounts, and documents—in fact, everything which miglit have any reference to. the business — even tho contents of my waste-paper basket! I was further informed that I was not allowed to send any. lofjens or telegrams, except such that ho had first approved of, and that I was not allowed to open, any incoming letters or telegrams, nor to draw cheques except sucli counter-signed by tlio supervisor. My own private banking account, which contained a- balance of about M.40150,000, and that of Messrs. Wm. F. Malcolm and Co., with a balance of approximately li million marks, had been stopped by him the night before. , He removed all the books and papers which he had attached in my office to tlio office in which he was then employed (he had not an office of his own), and told me that I would have to submit to liim at that office all incoming letters and telegrams unopened, and all outgoing letters and telegrams for approval before dispatching them. I was not permitted to use. the telephone for business purposes. My business was a fairly extensive one, with an annual turnover of approximately about one million sterling, and it was, of course, impossible for me to carry it on nnder those restrictions. _ I told' the man so, and informed him that I declined 'to do any _ business whatever under these conditions. He replied in effect that it was not the, intention of the German Government to hinder us in business, that, on tha contrary, they wished us to continue trading, and that it was my duty to do so. This, of course, was mere sophistry, as it is obviously impossible to trade under such conditions. Besides, I found out later on that unknown to me the superior had given orders to. the post office and telegraph office not to deliver any mails or telegrams to us. These were only delivered subsequently after having been held up—unknown to me—for nearly a fortnight. When I noticed that neither letters nor telegrams were arriving, wrote to the post and telegraph officer, but received no reply. ■ These, letters were submitted to the supervisor, who even then refrained from telling me that the mails and telegrams were being held up by his own orders. A Wrong Balance-Shcet. .1 therefore confined myself to tho winding-up of affairs in general. Even in this I was considerably handicapped. Every letter I wrote had to be sent to the supervisor for approval. His place of business was situated some considerable distance from my. office, and very frequently my messengers would bo informed at 3 or 4 o'clock in the afternoon that he was out, or that he had left for tho day. I therefore consulted my lawyers, and decided to wind up the firms of Wm. F. Malcolm and Co. (Hamburg) and Fredk. William Hanson, but this was vetoed by the supervisor, who stated that both firms must continue to exist. Early in October last year I was informed by ', the Hamburg authorities that the firm of Wm. F. Malcolm and Co. had to pay to the supervisor a monthly fee of MISOO. My protest against this was of no avail. It' must be borne in mind that from the moment the man took charge of my office tliero was no business whatsoever to supervise; Tho only thing ho did was to remove my books and papers to his own office and to stop the banking accounts. He certainly tried to balance I the books of Messrs., Wm. F. Malcolm and Co., but in this he did not suc--1 ceed, as"'ho drew quite a wrong balancesheet. ' He was evidently not accustomed to commercial book-keeping, and from what [ saw and heard of him I rather think liis usual occupation consisted in keeping tradesmen's weekly account books. Ills assistant, who did "most of the work in connection with my business, was, I Know, a book-keepor to a laundry. No fee was charged at that time for the supervision of my own firm, but I was informed in July or August last that the Hamburg Government had decided that I had to pay him a fee of £200 a month, and that this was to be made retrospective as from January 1. There was also no business, whatever to supervise in connection with my own firm. According to the German law, enacted for tlio supervision of alion enemies' firms, the supervisors had not tho right to initiate any business, but their powers were limited to supervision, which, of course, entailed their right to veto anything they liked. In the case of Messrs. Wm. F. Malcolm and Co., Hamburg, the supervisor did not adhere strictly to tho terms of this law, as he undertook to call in outstanding moneys from that firm's customers in Germany and elsewhere without consulting me, and certainly without my •sanction. Interned In a Stable. I lodged at the outset a forma] protest concerning all this with the United States Consul-Goneral in Hamburg, but I was forbidden by the supervisor to communicate with the Consul-Gen-eral again. Everything that could bo ivas most efficiently done to injure us in our business, and to prevent us engaging in any trade whatever. My own banking account and that of Messrs. Wm, 1 1 . Malcolm and Co. were kept at the Deutsche Bank, Hamburg. As the latter's balance was fairly large, and as I was not allowed to remit it home, I wanted to place it on deposit at interest. Tho Deutsche

Bank refused to take it on deposit, and [ met the same refusal from the other leading banks in Hamburg. I was told by one of them that they had come to a private arrangement amongthemselves not to pay deposit interest on any "English" money. The Deutsche Bank especially behaved verv badly. On.November 6 last year I was arrested, put' in gaol, and subsequently interned in Runlebcn, where I was put in damp, dark stable, and treated generally ivith most outrageous cruelty, bo that my health has permanently suffered. This in spite of the fact that I had for many years been a, householder and fairly large taxpayer, and owned property in the country, was then nearly 54 years of age, and in a most precarious state'of health. I subsequently heard privately that after my internment the firm of Wrn, F. Malcolm and Company had been placed in the hands of a receiver or trustee, who had full powers to deal with the firm and its assets as though they were liis own. I have, however, no official intimation of this. I also saw later on in tlio German newspapers that a law had been passed absolving the Government from .any liability for any acts which such receivers or trustees for alien enemies' firms might commit. All the measures adopted by thoGer-. man authorities in connection with British businesses undoubtedly were intended to throttle• and destroy them; they certainly wero carried out so as to secure this effect. We were told at the time that these were merely acts of retaliation, as all German firms iu Great Britain wore being treated in the * same or even in a worse manner. I have confined myself strictly to recounting only the facts as I experienced them myself.