Nevertheless,
on 13 May 1929 it was at last possible to call an extraordinary
general meeting of the shareholders of the two companies concerned to
ratify the agreements arrived at. The Economist of 11 May summed up the position thus:
Briefly,
the capitals of both companies are to be increased; Congo Border
shareholders will be offered approximately 300,000 shares at £5 and
out of the proceeds the company will subscribe for 100,000 N'Changa
shares at £3, a further 200,000 being offered to the shareholders of
that concern at the share price. The former issue will be guaranteed by
a group, which comprises the Rio Tinto Co., Messrs. N. M. Rothschild
and Sons, the 'Chartered' Co., British Metals Corporation, Johannesburg
Consolidated Investment, Rhodesian Anglo American, Union Corporation,
Anglo Metal Co., and Minerals Separation—probably the strongest
combination which has ever backed a mining enterprise; the N'Changa
issue will be guaranteed by the Congo Border Co. With the funds thus
provided the N'Changa will be able to proceed with the development and
equipment of its property, and the Congo Border to investigate
thoroughly the remainder of its concession. The present scheme
represents a great advance upon the earlier American offer. It embodies
no options on shares at low prices, and has apparently been drawn up
with a view to discouraging rather than encouraging speculation in the
share market.30
From
the standpoint of Anglo American Corporation interests, apart from the
direct increase in powers of control and in prestige which resulted
from these operations, the indirect gains were not inconsiderable.
Rhodesian Anglo American was now established as an independent and
vigorous influence in the City of London; relations between
that
A.S. & R. should be given a share in the groups on exactly the same
terms as the other members. This Auckland Geddes refused and from it
argued it would be unwise to further antagonize A.S. & R. by at a
later date admitting other American houses. . . .
I
am sure you will be gratified that we have been able to secure two
seats on R.C.B.C. board for Rhoanglo and that Pollak has been nominated
to one of these seats. N'Changa board is to be dealt with later. It
seemed inadvisable to press for the housing of the company in Rhoanglo
offices because it appeared to me more important that Rhoanglo should
become more a factor as regards R.C.B.C. and N'Changa in N. Rhodesia in
the manner you have indicated in your cables. To ask for too much might
have defeated our object.
The
difficulties now to be encountered are minor and, as I have remarked
above, agreement seems practically to be reached. . . .'
30 To
this certain points should be added. The resolutions submitted to the
shareholders of R.C.B.C. provided for an increase in the number of
directors to twelve. As a result, apart from Edmund Davis, the British
South Africa Company, the Rio Tinto, Messrs. Rothschilds, the Union
Corporation and Rhodesian Anglo American nominated, respectively, Mr.
(later Sir) Dougal Malcolm, Sir Auckland Geddes, Mr. J. N. Buchanan,
Sir Henry Strakosch and Leslie Pollak. Further, in return for a
consideration of 100,000 shares R.C.B.C. gave its subsidiary the right
to prospect for minerals and mark out mining locations within an
additional 1,000 acres adjoining its then property.
