prepared
his own scheme 'for the formation of a buying and selling company which
I would be prepared to recommend to my colleagues for acceptance.
Memorandum handed to them yesterday . . . expressly states views
expressed are my own personal suggestions and are not intended to
express views or to commit any of my colleagues.' This was on 5 March.
The
scheme proposed a private South African trading company, representative
of all conference producers and the Syndicate in equal proportions. The
Syndicate firms, who were to do the actual selling as agents, were to
be paid a commission of \\ per cent to be reduced to 3 per cent
after 1930 when the company was to take over the staff of the
Syndicate. 'Selling firms to have reasonably free hand but main
question policy to be settled by board.' The contracts with the selling
firms were to be for twelve years from 1 January 1929.
There
were two important separate suggestions. First, as to rights of
succession. 'Company to be a private one with registered shares not to
be put on market—if any shareholder desires dispose his interest other
than to a principal of one of the selling firms, producing companies to have first offer. ...
If producing companies do not exercise right purchase owner of shares
to have right to sell to anyone at a price not less than they were
offered to producing companies.' Much more important were the
suggestions as to the directorate. De Beers were to appoint three of
the twelve directors and the Premier Mine one; S. B. Joel and Ernest
Oppenheimer were to appoint six; and the two merchant banking firms,
Morgans and the Rothschilds, were to appoint two 'to be independent
gentlemen probably hitherto not connected with diamond trade. Consider
company should have chairman South Africa and deputy London. . . .
Hirschhorn first chairman, Bessborough first deputy, both appointed for
five years. An alternative suggestion by S. B.Joel and Sir Ernest
Oppenheimer for the chairmanship would be equally acceptable.'
These
were the suggestions cabled by Louis Oppenheimer on 5 March. At the
same time he sent a second cable, giving his own views: 'Drop idea
company for present and producers buy half Syndicate stock. . . .' He
also proposed a 'committee to whom sales would be reported daily and
once a week account sales rendered'. The merchant bankers concerned
were each to appoint one member, 'being entirely independent people
outside the business, but it is understood that management buying and
selling company must remain with Barnatos and A. Dunkelsbuhler and
Company. Such committee could be
