objections I have suggested calling in Bob Edmunds to assist in the investigation.
What are the advantages?
1.
Important, but by no means the most important, that we get more
companies to administer. I don't suppose our buying, secretarial,
accounting, etc., departments will require much additional space, nor
many additional clerks. The townships department wants enlarging which
is all to the good. On the whole quite a substantial revenue should
result, and townships expenses should be less at the same time.
2. The important points are:
(a)
We control a company with more than ^2,000,000 of assets. These assets
are in too few companies—it will be our business to improve it and make
a success.
(b) We enter the coal business under the very best auspices.
(c)
We are back in the Free State through Western Holdings. Hagart
says yes, but the Union Corporation has the technical control,66
to which I reply: that is a pity but one cannot make real money out of
technical control, but only out of proper participations in any new
business that may come along in the Free State.
After
all the first business is to open St. Helena. The next property—if
any—will come along in five years' time or so. I am firmly convinced—
agreement or no—that the Union Corp. could never insist on becoming
C.E. when the Anglo American is C.E. of Western Holdings. Such a
provision was sound when dealing with Townships but would be ludicrous
when dealing with us.
A little later (18 February 1942) Ernest Oppenheimer was commenting:
It
is certain that no activities will be started in the Free State until
after the war. I still hold the long view and to be back in the Free
State gold-fields will give us business and also control of new
properties when Anglo American requires new properties. Five or ten
years is a long time but I hope Anglo American will flourish under your
chairmanship in years to come.
On 24 January 1942 it was possible to announce success:
Last
Monday Hagart came to see me to discuss the S. African Townships
business. On Tuesday he and I met Martin, Orpen and Corder in Syfrets
board room for a general discussion and we adjourned until Wednesday.
We then presented a statement of our intentions and aims and after two
hours
66 At the 41st ordinary general meeting of South African Townships, held on 5 June 1941, the chairman (Mr. Harold Jeppe) said:
'So
that there may be no confusion in your minds about the future control
of Western Holdings, it would be as well for me to state that this
company will continue to be administered by your corporation. The
administration by Union Corporation of such mines as may be established
on the company's farms in no way affects the administration of the
company itself which remains with this house.'
