STINNES IN BUSINESS

Evening Star, Issue 19022, 18 August 1925, Page 5

STINNES IN BUSINESS

SNARES IS EMPLOYEES OUTWITTING THE HANKS. Press Association—By Telegraph—Copyright LONDON, August 16. 'Pile Berlin correspondent of the 4 j\lorn i n<j; Post’ says Unit Derr Edmund Stinnos’s unprecedented notion in offering his shares to liis work-people Inis astonished the financial world. The Stinnes family complain most bitterly of the means which a consortium, of all the leading hanks lias adopted in the liquidation' of the Stinnes properties, which, it is alleged, lias.resulted in tho depreciation of tho assets. Edmund until recently practised medicine. Ho has had little business experience, hut ho has shown a determination to outwit the banks, which are avowedly Keeking to regain a controlling voice in Germany’s industrial affairs. If the workers accept Edmond’s offer, tho Prussian Government will probably bo forced to finance the undertaking to keep it going. The offer 110.3 nonplussed the Labor leaders, who have constantly denounced the Rtirmcs family.—A.. and N.Z. Cable.

[A conference of German bankers early in Juno investigated the financial condition of the Stinnes firm. A scheme for the reorganisation of tho concern was decided upon, the big hanks being understood to nave guaranteed financial support to tho extent of 44,000,000 roiciisnurks (£2,200,000). The uncovered obligations of tho firm were variously estimated at from seventy to 100 million reichsmaraks. Tho foreign credits obtained by the firm of Stinnes have still a considerable time to run. About the same time tho ‘ Deutsche Allgemeino Zeitung,’ a Stinnes newspaper, explained that the reorganisation had nothing to do with what is known ns the “ Stinnes concern ” —the Sieracns-Phein-Elbe Sehuckort Union — but the firm of lingo Rtiunes, Mnl-heiman-Ruhr. The journal wont on to state that the rumors of tho pending dissolution of the firm were ridiculous; on the contrary, the present reorganisation was expected to lead to renewed activity with tho full support of the banks. The Mnlhcim firm, it was explained, was beset with difficulties arising out of the dual- control exercised by Herr Hugo Stinnes, jun., and his brother, Herr Edmund Stinnes, whoso points of view differed fundamentally. Eventually ilie.se difficulties increased to a dangerous point, but the recent withdrawal of Herr Edmund Stinnes bad at last removed them. _ 'Hie linn, in which Frau Stinnes remained as before tho chief shareholder, would in future bo controlled on her behalf solely by Herr Hugo Stinnes, jun., who would bo able to carry out certain plans which had been opposed by his brother. The current rumors of the sale of the ‘Deutsche Allgemeino Zeitung’ were said to be entirely without foundation.]