but a suggestion was made that proposals should be submitted to them, and that a delegation should be sent to Sweden at an early date to continue the discussions; this is now receiving consideration. Position of "Baume & Nimy" Works.-Prior to the meeting letters from Nimy, Gilsoco, and Ougree were circulated, and the following proposal submitted for the attention of the meeting: "It must be understood that from the moment the 'Baume & Nimy' group is in deficit, and however small its percentage of deficit may be, this group will receive, in preference to any other group, the allotment and protection necessary for all inquiries for accessories, without rails." We said that while we were sympathetically inclined toward "Baume & Nimy" we could not undertake to turn over to them all inquiries for accessories. This was asking too much as occasions would arrive when other groups would be better qualified to follow an inquiry than "Baume & Nimy." It was probable that they had in mind such inquiries they themselves received for neutral markets. We added that we could not agree to the proposed clause without modification. Marigrée explained that "Baume & Nimy" only wanted to be placed in a position to obtain the tonnage to which they were entitled. As it was well known they are not interested in rails, but only in accessories. The London committee had previously been instructed to give them preference wherever possible, but the results in the last pool were unsatisfactory. The British pointed out that they had made special concessions to "Baume & Nimy" in the past. They could not accept the proposal in its present form, and if the committee thought otherwise they would have to consider the position in regard to their reserved areas. They certainly could not agree to throw them open under all circumstances. Marigrée said it was not the intention to affect in any way the present position in regard to British reserved areas, and they agreed that the British had done their best to help them. The French and other groups thought the request was too far reaching, but they were quite willing that everything possible should be done to satisfy “Baume & Nimy." It was agreed and minuted that the management committee sympathetically considered this question, and directed the London committee that whenever "Baume & Nimy" are 15 percent or more in deficit they should have preference in the allotment of all inquiries for neutral markets for accessories, without rails, should "Baume & Nimy" have the inquiry; further, that the tonnage in clause 10 (b) should read "10 metric tons" instead of "25 metric tons." The agreement in respect of British reserved areas to continue as set out in the "Baume & Nimy" agreement. Basis prices.-The British group referred to the suggestion made at the previous meeting that sterling basis prices be adopted instead of gold basis prices at present in force, and stated in the first place they favored a reduction in the base price as prices were too high. It was agreed, however, that there should be no change in the basis price, whereupon the British stated that the London committee should be given full latitude to authorize a price below the basis. The secretary pointed out that the London committee already had full power to authorize a price below the basis price in accordance with Resolution 3 of the special meeting of the management committee held on January 15, 1932. There was also a recommendation at the meeting on July 22, 1937, that the London committee should not authorize prices below £5:10:0 for lots of 1,000 metric tons and over, excepting in very special cases. The British said their request was not covered by the latter clause as they would probably want to go more than 10/- per ton below the standard prices. If this latitude were not allowed to them there was danger of outside intervention. The Germans stated that the London committee had power to authorize a special price where necessary, and they believed they were right in saying that they had already gone as low as £5 (gold). The chairman said he thought the situation was provided for by the existing regulations, and that the London committee could be guided by the special clauses already approved by the management committee. This was agreed, and the question of adopting sterling basis prices was deferred until next meeting. Defective rails.-The London committee recommended the management committee to adopt the following wording: "Rails in lengths of 1.50 meters and under.-Members are authorized to sell perfect and defective rails, in lengths of 1.50 meters and under, as scrap, 84949-44-pt. 16 22 provided that perfect rails of such lengths may only be sold as scrap if they are unholed, and are not cut to exact lengths." We stated that the Polish group originally asked for a ruling regarding disposal of crop ends of new rails. The position, however, had become rather obscure due to the fact that the Survey of Egypt department use short length rails for boundary posts. We expressed the view that if any group quoted for new rails in short lengths, allotment should be taken and a suitable extra charged for cutting into short lengths; further, that no sound argument could be advanced why new rails specially cut should be sold as scrap. The French also thought the position was somewhat confused, and suggested that further discussion of this matter be adjourned until next meeting. The Germans considered we should leave the wording as it was, and allow the London committee to deal with each case as it arose. The Poles thought that I. R. M. A. should be concerned with rails used for railway purposes, and as the survey of Egypt rails are for use as boundary posts, they should not come within I. R. M. A. After further discussion it was agreed to adjourn this matter until next meeting. Long lengths.-This question was referred back to the London committee with plenary powers to fix the extras. The usual clauses concerning our group were renewed subject to review at each meeting. No. 3/17-Argentine State Railways.-The position in regard to this allotment is covered by the minutes of the London committee dated September 1. Letters from the French and Polish representatives were circulated, dealing principally with questions of procedure. It was reported by the French representative that by agreement with other interested parties they had prior to the meeting agreed to allot this business as follows: French group.... The optional tonnage was allotted in the same proportion. Tons 8,000 3,000 2,000 2,000 This was agreed, and the question of procedure in the event of more than one group being equally the most in deficit was adjourned to next meeting. In our opinion, when more than one group are equal in deficit, preference should be given to the group with the largest quota in I. R. M. A. If that group desires to retrocede any portion of the order the London committee should, as is customary, allocate the retroceded tonnage to the group or groups most entitled to participate. Next meeting.-At the invitation of the French it was agreed to hold the next meeting in Paris in November or December, a day before or a day after the next E. I. A. meeting. Yours truly, R. F. GURNEY. EXHIBIT No. 531 [Letter, with enclosures, from William B. Todd, Brettenham House, London, England, to the secretary, Steel Export Association of America, New York, dated August 8, 1938] BRETTENHAM HOUSE, London, W. C. 2, August 8, 1938. Semis for Greece. Erection of a steel plant. D. & R. Stavrianos, Pireaus. The SECRETARY, Steel Export Association of America, New York. DEAR SIR: Attached we send you copy of correspondence received from the Entente Internationale de L'Acier regarding Greece, together with copy of our reply. Will you please let us have your early comments? Yours very truly, WM. B. TODD. Semis for Greece. D. & R. Stavrianos, erection of plant. L'ENTENTE INTERNATIONALE DE L'ACIER, DEAR SIRS: We have noted the contents of your letter and enclosure of the 6th instant under the above caption and will revert to the matter after consultation with New York, as we cannot say exactly how this will affect their relations with the outsiders. Yours faithfully, ENTENTE INTERNATIONALE DE L'ACIER, Semis for Greece. Erection of a steel plant. D. & R. Stavrianos, Pireaus. WM. B. TODD, Esq., Strand. DEAR SIR: We refer to the communications which have been made to you by Mr. Elliot at the end of April this year, and beg to hand you herewith copy of a letter which we have received from Messrs. Stahlwerks-Verband, Dusseldorf. We should feel very obliged if after examining the question you would kindly do the necessary with your works in order to prevent the supply of semis to Stavrianos. Yours faithfully, ENTENTE INTERNATIONALE DE L'ACIER. STAHLWERKS-VERBAND, AKTIENGESELLSCHAFT, Dusseldorf, August 3, 1938. Semis for Greece. Erection of an iron industry. ENTENTE INTERNATIONALE DE L'ACIER, Luxemburg: We are referring to the correspondence formerly exchanged with you in above question. In the meantime we have received further information from one of our agreed merchants with regard to the development of rerolling in Greece, and we would not omit to bring same to your knowledge: "We have received a report from our Greek representative, according to which a certain Mr. Karavanos, recently returned from America to Greece and said to dispose of important capital, jointly with Mr. Korai, the former mayor of Kokinia (near Pireaus) and Mr. Papoulia have ordered plant from America for a sheet-mill for the rolling of thin sheets 0.5-3 milimeters thick. They are further said to contemplate to manufacture galvanized flat and corrugated sheets. The whole of the plants is said to be already in the free port of Pireaus. "The information supplied by our representative comes from a reliable source and the above-mentioned gentlemen are said to have already purchased a plot of land in Kokinia (near Pireaus) for the erection of this mill. It is further reported that Mr. Karavanos' capital amounts to 40,000,000 drachms. It is also said that Mr. Karavanos is technically sufficiently grounded to work this enterprise but that he has nevertheless invited American engineers to Greece. It is also rumored that Mr. Karavanos has already obtained from the Greek Government an import license for American semis. "We are putting this before you with the request to take fresh steps toward putting a stop under any circumstances to the supply of American semis to Greece, for if this sheet-mill is ever started, the Greek Government will most probably throttle the imports of sheets by increased import duties, etc. "As already informed you we have left no stone unturned in order to by all means prevent the establishment of an iron industry in Greece. The steps we had taken in this regard through the German Embassy in Athens did, however, not lead up to now to the expected result." In order to at least render more difficult the carrying out of Messrs. Stavrianos' plan, the E. I. A. groups had at the time decided to refuse any supply of semis to said firm. We had suggested in our letter of October 28, 1936, to also induce the Americans, through the medium of the B. I. S. F., to abstain from deliveries of semis to Greece. Now since that an agreement with the American group has been arrived at, a step of this kind might have a chance of success, and we request you to do the needful in this regard. Yours faithfully, STAHLWERKS-VERBAND AKTIENGESELLSCHAFT. SUBMITTED BY JAMES S. MARTIN, DEPARTMENT OF JUSTICE, SEPTEMBER 12, 1944, ON GERMAN-CONTROLLED FIRMS IN THE UNITED STATES EXHIBIT No. 532 [Letter from Christian A. von Rumohr, vice president of Adam T. Schildge, Inc., to Albin Holder, care of Adam Meldrum & Anderson, Buffalo, N. Y., dated May 28, 1937] Mr. ALBIN HOLDER, Care of Adam Meldrum & Anderson, Buffalo, N. Y. MAY 28, 1937. DEAR MR. HOLDER: I am sure that you will remember me from the time that I was with Schoellkopf, Hutton & Pomeroy, and also from our meeting at the Saturn Club. Mr. Schildge, a friend of mine, and I started this business at the beginning of the year, and we are doing considerable barter business, mainly with Germany. Our company was appointed by the German Government as a copartner of Lentz & Hirschfeld, Bremen, Germany, one of the largest importers of American cotton. We have had quite a bit of experience along barter lines, and are particularly handling the business of department stores all over the country. In Buffalo we naturally have several contacts and are writing you as we feel sure that you import some German merchandise. You no doubt are aware of the new barter system, by which you can take advantage of considerable saving. I would appreciate it very much if you would drop me a line after you have discussed this with your import department, advising me whether it would be possible for us to be of service to you in this matter. There is no point in my listing references at this time, since I do not know whether you will be able to use our services, but if there is a possibility of our getting together on some business deals, I will be glad to furnish you with bank references. We trust that we will hear from you very soon. EXHIBIT No. 533 ADAM T. SCHILDGE, INC., [Letter to Rudy Vogel. Continental Illinois National Bank & Trust Co., Chicago, from the files of the Transmares Corporation, dated February 13, 1937] Mr. RUDY VOGEL, FEBRUARY 13, 1937. Vice President, Continental Illinois National Bank & Trust Co., Chicago, Ill. DEAR RUDY: Apparently nothing can be done on the accounts that the Commerz und Privatbank and I cabled you about. Since I did not hear from you again, I assumed that my coming up in connection with these accounts would be useless. We have been working on these barter arrangements and have been able to line up quite a few large accounts. The competition is terrific, but yet I find we receive our share of the business. I would like to call your attention to the nature of the business we are transacting. Beside the barter business, for which we are acting as agents of Lentz & Hirschfeld, we are doing all kinds of transactions in registered marks, German dollar bonds, coupons, and any business of that nature as well as any South American and over-the-counter business. I would be very much obliged to you if you would ask your foreign department to give us a chance to make a bid for any business of that type. We have not as yet incorporated, as we have been busy since Mr. Schildge's return from Europe, but will do so in the next week or so with a capital of about $40,000 or $50,000. For reference about the firm of Adam T. Schildge and about his personal standing, I refer you to Mr. C. C. Johnson, vice president of the Chemical Bank & Trust Co., and to our lawyers, Messrs. Hawkins, Delafield & Longfellow, attention Mr. R. E. Lee. Sincerely yours, EXHIBIT No. 534 [Letter from Christian A. von Rumohr to Mr. Haas, manager, foreign department, First Wisconsin National Bank, Milwaukee, Wis., dated February 8, 1937] Mr. HAAS, FEBRUARY 8, 1937. Manager, Foreign Department, First Wisconsin National Bank, Milwaukee, Wis. DEAR MR. HAAS: I have just received a letter from my cousin, Charlie P. Vogel, in which he asks me to get in touch with you. He has apparently talked to you about the new barter arrangements which I outlined to him in a recent letter. The firm of Adam T. Schildge, of which I am a partner, are the correspondents of Lentz & Hirschfeld, the big cotton-importing firm of Bremen, Germany. As you undoubtedly know, the procedure of these barter sales, which makes it possible for the American importer to import his merchandise at a discount of 25 percent, has been worked out by us with the approval of our lawyers as follows: An importer who runs a volume of about RM 250 000 has to make an application to the German Reichsdevisenstelle,, either directly or through us. Upon the granting of this application by the German authorities, the importer puts in an order with his German supplier and has the goods shipped over here. The payment of this shipment is accomplished in this manner. As soon as the American importer desires to pay for the merchandise, he notifies us. We sell him cotton, he pays us for such cotton. We thereupon cable our firm in Bremen that we have sold to the importer a specified amount of cotton which our importer wishes to sell to Lentz & Hirschfeld. Lentz & Hirschfeld thereupon immediately pay into the approved account of our importer an amount in reichsmarks equal to 133% percent which our importer paid us for the cotton, this amount being calculated at the rate of RM 2.50 per dollar. This means that the importer gets his goods from Germany at a discount of 25 percent. Our lawyers believe that the shipment can be cleared if a currency certificate is supplied which states that the merchandise will be paid by free marks derived from the sale of cotton in Germany at such time payment is due. This new procedure should make it possible for importers to import German merchandise at prices which are competitive with the American market quotations, and I hope that your customers will be able to avail themselves of this opportunity. I am sure that Charlie Vogel has told you about my connections. In regard to Mr. Adam T. Schildge, I wish to refer you to the Chemical Bank & Trust Co. As to Lentz & Hirschfeld, you will be able to get information from the Bank of Manhattan, the Guaranty Trust Co., Central Hanover Bank & Trust Co. You will greatly oblige me by calling upon us in any transaction your customers might want to make. I am enclosing a copy of the type of application that will be necessary for your customers to fill out and forward to us. The choice of the German bank in which the account is to be opened is entirely at the customer's discretion, and we will forward any applications we receive here by cable to our particulars, Lentz & Hirschfeld. Very truly yours, P. S.--In regard to the amount of turn-over that is to be mentioned in the application, as I told you in the beginning of my letter, the German Government requires a minimum of RM 250,000 a year. However, I know that applications |