152
SIR ERNEST OPPENHEIMER
keep
him quiet while his rivals were making a bid, which, if accepted, would
either force him to agree to terms other than those envisaged by him as
appropriate or might perpetuate the cleavage in the industry. In this
view of the situation he was supported by H. C. Hull who urged that
'you should notify producers that you wish to tender and also inform
Government and ask latter to give you opportunity of doing so and of
ensuring that your tender will receive fair treatment and
consideration. Think suggested reunion will humiliate you and weaken
your future standing.' On n July 1925 Hull was writing to Ernest
Oppenheimer:
I
was glad to get your telegram this morning saying that Joel has now
adopted the attitude that, unless reunion is effected he will refuse to
join the old Syndicate in making an offer to the Union producers and
will withdraw from the Syndicate and join hands with you. I hope that
is definite and that he will stick to it. I take it an unconditional
reunion is out of the question unless there is material reconstruction
of the persons constituting the Syndicate; but I think the better plan
would be to form a new combine with domicile out here. . . .
On
the same day, the two brothers in Johannesburg were sending a most
important cable to Walter Dunkels in London which was clearly intended
to bring matters to a definite conclusion.
We
are most anxious to come to definite understanding with Barnato
Brothers. It is evident that reunion under 1924 conditions absolutely
impossible and new combination must be formed. We cannot be expected
to take smaller share in any combination than the proportion of the
trade which we now control. We have
(1) Five-year agreement with South West equal to 21 per cent.
(2) Will no doubt purchase outside South West goods end of the year 3 per cent making 24 per cent.
(3) Half interest with Barnato Brothers in Angola, B.C.K., Congo, West African business.
(4) We are establishing sound river business.
(3)
and (4) together represent very nearly 10 per cent of the trade. To sum
up, we have quite one-third of business and carrying comparatively
small stock. If the old Syndicate and our business were to combine and
we had the same share it would mean, as far as we know the figures,
paying out ^700,000 for stocks with no chance larger profits. Generally our position very favourable. On the other hand present Syndicate have contract for six
months and no better chance succeeding five-year agreement than we
would have ourselves. We suggest that Barnato Brothers and ourselves
should now come to definite arrangements as to joint action. From income
