the 9th raised the vital point. When he cabled, Ernest Oppenheimer said:
I
had had no opportunity of looking into the merits of the scheme
outlined by Edmund Davis, but it at once struck me that it was odd that
he should discuss the matter so fully with the Chester Beatty people
without reference to us, when we and the 'Chartered' company have had a
very large holding in the Broken Hill company for a number of years,
and the Power Corporation, in which we are also very largely
interested, is the principal creditor, not to mention the fact that it
holds options over a large number of shares, and generally speaking it
is only through the Power Corporation loan that Broken Hill has been
able to carry on.
If
any scheme of reconstruction is warranted, it appears to me that we and
the 'Chartered' company have a very strong claim to being the principal
parties to such a scheme. . . .
I
do feel very strongly that no action should be taken until the position
has been considered from every aspect, and I hope that no attempt will
be made by Edmund Davis to rush it through.45
S.
S. Taylor got in touch with Edmund Davis and the latter found it
necessary to excuse himself. The situation which had arisen was clearly
very embarrassing. Edmund Davis pleaded that
I
never had the slightest idea that you would like the Anglo American to
look into the business, especially bearing in mind that I had
previously discussed this matter with you when you were in London about
two years ago; and had I had an opportunity of discussing the business
at all with you during your recent visit to this country I might again
have mentioned the matter, as I have at all times been anxious to see
the company not only placed in a sound financial position but also to
be provided with sufficient capital to increase its output of zinc and
resume the production of lead. . . .
Nevertheless,
he really aggravated the situation by explaining that, on the technical
side, Selection Trust felt itself unable to cope with the 'modern
smelting of zinc ores' and therefore
45 This
letter was followed by a further telegram to S. S. Taylor on 12
December: '. . . we think action Sir Edmund Davis in committing himself
to free option to others without reference to British South Africa
Company and ourselves is to be deplored and every effort should be made
to retrieve position. I do not wish, however, to antagonize Chester
Beatty, nor do I wish give Sir Edmund Davis chance of saying we took
business away from Beatty. Would therefore prefer if British South
Africa Company would take up matter in the first place.
Clearly
our long association with Rhodesia Broken Hill Development Company
entitles us to expect first consideration in any scheme of
reconstruction, and it would moreover only have been right and
reasonable if principally interested parties both as shareholders and
through Northern Rhodesia Power Corporation Limited, namely, British
South Africa Company and Rhodesian Anglo American Limited, were given
first opportunity. . . .'
