WINDING UP THE HUN BANKS

Dominion, Volume 10, Issue 3030, 17 March 1917, Page 12

WINDING UP THE HUN BANKS

SIR W. FLENDRR'S REPORT £24,000 PEES AND COSTS The history of the long-drawn-out process of winding-up the Gorman and Austrian banks in the City of London, still uncompleted after thirty months of war, is told in a White Paper issued on January 4, giving the renort which Sir William Plender, the Controller, prepared for Mr. M'Kenna when Chancellor of the Exchequer. According to this report: "It is pobable that by the end of J larch next" new purchasers may take "complete possession" of the banks. Then. Sir" William suggests. h;s appointment as controller should come to an end. There are still ten Hun officials engaged in the banks as mdispeiisnblcs to the winding-up. rhe question whether the hanks will be allowed to resume operations bore a £!' t,lc ' war is untvet settled. Jhe cost of "windiug-up" amounted on June 30 to £24,011. all of which is borne by the banks. Sir William Plender s fees as controller then amounted to £3900, this being the charge for hjs own services and those of his personal staff engaged, the remuneration'of supervisors £10,726, and the charges £3336. ■

. Hero is a list' of the names and nationality of the managers at the outbreak of the war and what has become ot some of thorn:—

Deutsche Dank.—J], von Eapp, Austrian, aged 58; O. Roeso, German, aged 01, prevented bv withdrawn) of police permit from attending at bank since 4 UC rI st ' 1!)1 ' 5, repa triatcd J,ll, 0. 1916; M. Inmienborc. German, aged 49 interned May, 1915; and Edward Bitter, Uerman, aged 54, prevented bv withdrawal of police permit from 'attending at bank since August, 1916 Dresdiier Rank.—Arnold Ellert, naturalised British subject of German origin, aged 55: and Paul Lindonherg, naturalised British subject of German origin, aged 44. Discontn-Oscllsehnft.— L. A. Gutschow, Russian; and E. Karbe German, aged 51, interned June, 1915 repatriated October. 1915. ' Austrian Land Bank.—O. Polken, naturalised British subject of German origin, aßccl 47; and F. Eischel, Austrian, aged 36.

Anglo-Austrian Bank.—P. J. V o „ 0 | naturalised British siibicct of German' orinin, ngod 48.

fcm- \\llllam Plender points out' thai under the terms of the first licenses issued the banks were not nut into liquidation in the ordinary sense of the word and that it was not within his province to exercise management, though wide powers of negation were Placed in his hands. It does not appear that real steps for the windingup ot the hanks were taker, until January, 1916. (

.P.??!lnss Befors the War. R-eicrenco is made to the allocations made m August. 1914, that the banks snipped abnormal quantities of securities and bullion to. tho Continent within a f ow days of tho outbreak of the war. All the supervisors, however report that their investigations do not bear out these allegations, though it must bo pointed out that they appear, to have interpreted "a few'dayji" very literally and confined their investigations to tho fortnight or three weeks preceding the declaration of war Iho largo indebtedness of these banks to non-enemy creditors "contributed in no small degree to tho financial stringency on the London money market, where the hanks' acceptances were, held to a considerable amount." Many difficulties were encountered in the collection of the banks' assets. Up to tho end of last September, however, the cash receipts amounted to £23,460,585.

On December 1 there were 10 enemy persons still employed by the hanks, as compared with 440 in normal times and 164 immediately after tho outbreak of war, when nuiny hastened home to fulfil their military service. The staffs oil December 1. consisted of the following :—British (born) 123, British (naturalised) 25, Germans G, Austrians 4, Allies and neutrals 8, total 160. . . •

"Tho ton enemies for whos» temporarv .exemption I have asked," savs Sir William, "are managers and submanagers and persons in positions of responsibility whose services, in my opinion, are verv desirable to retain in order that the knowledge they possess of the numerous and complicated transactions now being closed may bo available to assist me in the final stages of the lionidation. In many cases these persons hold the banks' procuration and their signatures are reouhwl in order to deal with the assets in this countrv end abroad.

"Other clerks at the hanks could not undertake their duties, and in my opinion it is impracticable temporarily to replace those men by ncrsons who are in no way familiar with the banks' Tiast business and connections. Their immediate removal would deprive me of their assistance as well as of their executive power and impede the settlement of the banks' affairs. As soon as the time comes when, in my opinion, their service can no longer be utilised with advantage I will tike Ibe necessary steps to acquaint the authorities."

Discussing the work remaining to be done. Sir William says, regarding the German hanks: "It. haviiv; been decided that their premises shall lie sold. ifc_ appears to me that though th<" ; o will remain much to he done, the reason for any continuance cf the present arrangements will, while onep possession is ftiven to the purchasers. ce?so to exist, and it may well lie and I would smrgest that my appointment as controller should como to an end."