File No. 861.51/306
The Ambassador in Great Britain (Page) to the Secretary of State
[Received 10.37 p.m.]
9837. For McAdoo from Cravath:
175. Your 164. Holden not president of Russian Corporation but his son a director. Sir Robert Chalmers brought about meeting with Tait and Stoddard, corporation’s two principal officers, who give following statement of their position. Besides indebtedness to City Bank, corporation’s only other debt about £250,000 secured loans held by British banks which have been renewing without receiving or asking additional security. Company’s assets of about £1,800,000, book value, consist chiefly of Russian investments including £400,000 deposits and Rs. 2,000,000 deposits both in Russian banks which now unavailable and about £700,000 Moscow bills, roughly about £1,000,000. Book value of assets unpledged. Officers unwilling to give City Bank additional collateral but say will agree that no additional collateral will be given to British banks whose loans will not be substantially reduced and that unpledged assets will be kept free except to the slight extent that they may be used in connection with corporation’s current opinion [sic] and new business which will not be considerable. Tait stated at some length reasons for view that City Bank should not demand additional collateral for any unwillingness to respond to demand. I think British Treasury is right in feeling that under the circumstances it is not in a position to bring pressure upon corporation to furnish additional collateral. Will receive information above summary in more definite form to-morrow but situation is doubtless fully understood by Jacobs of City Bank who is a director of Russian Corporation. Please instruct if I can be of any further service.