414
SIR ERNEST OPPENHEIMER
duction of a reasoned memorandum from the hand of Leslie Pollak. The essential point made was:
Our
reply to this inquiry must be a frank admission that we never thought
of that company in connexion with this matter. Notwithstanding that Mr.
W. B. Thomson was one of the original directors of the Anglo American
Corporation and that his company is a large stockholder in it, we have
never had any direct dealings with the Newmont company and, as a
result, we are, I fear, not familiar with their policy, their aims and
scope of their operations. Had we received the slightest indication
from any quarter that the Newmont company would wish to join us, I am
sure the most sympathetic consideration would have been given to their
case. Without the least desire to disclaim responsibility I would
point out that since the Newmont company has known of our activities in
Northern Rhodesia almost since their inception it was within its power
to inform us of its interest in that country. Had it done so, I am sure
that the claims of the Newmont company would have been considered in
connexion with any developments such as the Bwana finance or the
flotation of our Rhodesian company. . . .
Turning
now to the comment of J. P. Morgan and Company on the absence of advice
to the Newmont company of our intention to approach Guggenheims and the
American Metal, the only possible reply is that having never considered
the Newmont company as an alternative to either of these firms, we
thought no more of mentioning our intention to them than to any other
shareholder. I need hardly say, however, that wc would certainly have
acted upon any suggestion of J. P. Morgan and Company in this respect,
the more so since we enjoyed the benefit of their good offices in our
negotiations with Guggenheims. . . .
All
is well that ends well: the Newmont company, on being satisfied as to
the value of the assets that it was proposed to bring into the new
company, consented to join. There was, of course, during all these
negotiations, no thought whatever of handing over control to American
interests. At the very time these delicate negotiations were taking
place, an incident occurred which throws a strong light on the attitude
of Ernest Oppenheimer. The Bwana M'Kubwa company had an outstanding
debenture debt of nearly -£1,000,000; at the same time the market value
of the interest which it had in the Rhodesian Selection Trust was worth
about £1,500,000. The 'Anglo Metal group', wrote Edmund Davis to Leslie
Pollak, then in London, in a letter dated 21 November 1928, 'wish to
acquire part of the Bwana interest and I think may perhaps be willing
to pay £1,000,000 in cash for part, leaving the Bwana with 10 per
cent'. This proposal, made verbally before the letter was written, was
vehemently opposed by the Anglo American Corporation group in London.
The letter continued:
