such
as Roan Antelope etc., so as to be represented on boards, I agree with
you that there are no special objects in our possessing small share of
holding in another company. There can, therefore, only be two
considerations as to the sale of Rhodesian Selection Trust shares: i.
That we do nothing to interfere with or offend Mr. A. Chester Beatty,
and therefore we should frankly tell him our intentions. 2. We must be satisfied that the price we obtain is a reasonable one.
Subject to foregoing, we agree that we should at advanced price liquidate our holding.
This
transaction and others mean big profits for Rhoanglo, but I would most
strongly urge that we do not pay dividend for some time but use profits
to create really strong reserve fund. We can adopt this conservative
policy without criticism at this juncture, because very few shares arc
so far held by public.
He then dealt with the question of the N'Changa Mine.
N'Changa
Copper Mines scheme contained your telegram 4 April appeals to me very
much. I note that Anglo Metal have been admitted as members group, and
feel sure we will work most harmoniously together, and now that
Rhoanglo properly established in Northern Rhodesia with efficient staff
they will support us in making consulting engineers and management
arrangements mentioned in your letter to me of 14 March.
Would like you to discuss my views with Mr. Louis Oppcnhcimer before speaking to board.
Edmund
Davis shared Iris views on dividend policy, and Chester Beatty, Edmund
Davis continued in a letter dated 9 April, 'told me that he had no
objection at all to our realizing Rhodcsian Selection Trust shares,
provided we did it carefully without injuring his market'.
Still
negotiations dragged on. Rhodesian Anglo American could not afford to
upset Chester Beatty at this stage, but Chester Beatty wanted to
enlarge the group. Though this gave the Anglo American Corporation
interests the chance to introduce the Newmont Corporation into the
syndicate, the other participants objected to enlargement.29
29 On 12 April 1929 the secretary of Rhodesian Anglo American wrote personally to Ernest Oppenheimer:
'Negotiations
have been continued actively during the week and we have at least
reached something like conclusion. The groups involved are so many in
number that it requires the utmost tact to reach agreement. The
position is not rendered easier by the representatives of some of the
groups. Moreover, Chester Beatty coming in with us (and this has been
influenced by the cable you sent Edmund Davis and by the conversations
your brother has had with him) has raised further complications,
because he wanted [certain American interests] to have a share. . . .
This opened the door for us to press for a participation for Newmont.
Except Anglo Metal the remainder of the groups were opposed to
enlargement. The final decision was taken not to increase the number of
participants yesterday. McGowan of Guggenhcims had suggested to
Auckland Geddes
