Silesian-American Corporation, SACO – was a holding company for
GiescheSpolka Akcyjna (Giesche Corporation), operating in Upper Silesia, Polandduring interwar times. Silesian-American held 100% of Giesche Spolka Akcyjna stock.SACO was established in Delawarein 1926 and was owned by Silesian Holding Company: 51% of common stock and 58,33% of preferred stock. The remaining 49% of common and 41,67% of preferred stock went to Giesche’s Erben, a German corporation (full name: Bergwerksgesellschaft Georg von Giesche's Erben) – in return for the entire capital stock of Giesche Spolka Akcyjna.
Previously Giesche’s Erben was a sole owner of Giesche Spolka Akcyjna.Silesian Holding Company was owned by
Anaconda CopperMining (65%) and the remainder originally by W. Averell Harriman, and then by Harriman or close affiliates and associates. SACO gave substantial loans to Giesche’s Erben, too. The funds for take-over and loan purposes were obtained by selling $15,000,000 collateral trust sinking fund bonds maturing August 1, 1941.
During WWII, when
Naziarmy invaded Poland, German military commissar took the control of Giesche Spolka Akcyjna. SACO was thus deprived of all income from the Spolka properties and was unable to pay dividends on its outstanding bonds. With the approach of August 1, 1941, the maturity date of the bonds, the company had only about half a million dollars in cash. Accordingly it filed a petition for reorganization under Chapter X of the Bankruptcy Act.
Owners and leading managers of Bergwerksgesellschaft Georg von Giesche's Erben could not reconcile themselves to the deprivation of Giesche Spolka Akcyjna, which was bought by Americans in 1926. Eduard Schulte, Giesche’s Erben General Manager, set up a plan of regaining control on Polish corporation, which was called repatriation scheme.
Schulte had close relations with a group of Swiss bankers. Just before war he established a subsidiary of Giesche’s Erben in
Switzerland, called Non Ferrum (full name Non Ferrum Gesellschaft zur Finanzierung von Unternehmungen des Bergbaus und der Industrie der Nichteisenmetalle) and transferred Erben’s stock of SACO to that new company.
In 1941 the Swiss bank LaRoche, acting jointly with Schulte, established another company in Switzerland, Ikap (Internationale Kapitalanlegen Gesellschaft). Schulte convinced Harriman and Cornelius Kelley (president of Anaconda Copper) to sell their shares in Silesian Holding Company to Ikap. Unfortunately Swiss paper work held matters up beyond June 14, 1941, when the US Presidential freezing order was extended to Switzerland. This subjected the transactions to
United States Treasury Departmentscrutiny and approval. As it was obvious that the stock was to be held for the benefit of enemy (a German corporation Bergwerksgesellschaft Georg von Giesche's Erben), the application to the Treasury Department for permission to make the necessary transfers was refused on July 26, 1941. Two later applications (of August and December) were also refused. Moreover, in November 1942, Alien Property Custodian, acting under Trading with the Enemy Act, vested German owned shares in Silesian-American Corporation.
Order No. 370: Silesian-American Corp. Executed November 17, 1942, signed by
Leo Crowley, Alien Property Custodian: “Two blocks of stock - 98,000 shares of common and 50,000 shares of preferred stock in the Silesian-American, a Delaware corporation [are being confiscated] . The stock, prior to August 31, 1939, stood in the stock book of Silesian in the name of Non Ferrum, Zurich, Switzerland, a Swiss corporation, which held the stock for the benefit of Bergwerksgesellschaft Georg von Giesche's Erben, a German corporation”.This was the final nail in the “coffin” of great Eduard Schulte’s repatriation scheme.
The post-war times
Before Silesian-American was finally dissolved, it took part in several legal proceedings in the 50’s, mainly raised by its bondholders.
United States Court of Appeals Second Circuit, Dec. 26, 1950. CONWAY v. SILESIAN-AMERICAN CORP. (which may be found at [http://www.jurisearch.com/default.asp] )
Sixteenth Annual Report of the Securities and Exchange Commission, Fiscal Year Ended June 30,1950, United States Government Printing Office, Washington: 1950 (which may be found at [http://www.sechistorical.org] )
U.S. Supreme Court Dec. 8, 1947 SILESIAN AMERICAN CORPORATION V. CLARK (which may be found at [http://supreme.justia.com/us/332/469/] )
United States Court of Appeals Second Circuit April 13, 1953 CONWAY v. UNION BANK OF SWITZERLAND (which may be found at [http://www.jurisearch.com/default.asp] )
United States Court of Appeals Second Circuit, Second Circuit. July 3, 1946 SILESIAN-AMERICAN CORPORATION et al. v. MARKHAM, Alien Property Custodian (which may be found at [http://www.jurisearch.com/default.asp] )
United States Court of Appeals Second Circuit Dec. 6, 1956 SCRIBNER & Miller v. Francis CONWAY, Trustee of Silesian-American Corporation (which may be found at [http://www.jurisearch.com/default.asp] )
Time Magazine Jun. 14, 1926 ( [http://www.time.com/time/archive/preview/0,10987,751560,00.html] )
Also a lot of Polish language sources, concerning mainly the history of Silesian industry, the history of
Katowiceand its districts, web pages of particular Polish coal mines. For example: [http://www.giszowiec.sewera.pl/] [http://www.kopalnia.com.pl/]
The book “Secrets of Upper Silesian Corporations” by Jerzy Jaros – in Polish („Tajemnice górnośląskich koncernów” Śląski Instytut Naukowy,
Wikimedia Foundation. 2010.
Look at other dictionaries:
Giesche — Corp. (Giesche Spolka Akcyjna) – one of the biggest and most respectable companies operating in Upper Silesia, in Poland, during interwar times. It was the biggest Polish zinc producer (40% of country zinc production) and one of the biggest coal… … Wikipedia
W. Averell Harriman — Infobox Governor name=William Averell Harriman order= 48th office=Governor of New York term start=January 1, 1955 term end=December 31, 1958 lieutenant=George De Luca predecessor=Thomas E. Dewey successor=Nelson A. Rockefeller order2=… … Wikipedia
Prescott Sheldon Bush — (* 15. Mai 1895 in Columbus, Ohio; † 8. Oktober 1972 in New York City) war Senator der Vereinigten Staaten aus Connecticut und Geschäftsführer der Wall Street Bank Brown Brothers Harriman … Deutsch Wikipedia
Prescott Bush — Prescott Sheldon Bush (* 15. Mai 1895 in Columbus, Ohio; † 8. Oktober 1972 in New York City) war Senator der Vereinigten Staaten aus Connecticut und Geschäftsführer der Wall Street Bank Brow Brothers Harriman. Er war der Vater von George Bush und … Deutsch Wikipedia
Prescott Bush — Pour les articles homonymes, voir Prescott et Bush. Prescott Bush Connecticut Période de mandat : 5 no … Wikipédia en Français
Poland — Polska redirects here. For other uses, see Polska (disambiguation). This article is about the country. For other uses, see Poland (disambiguation). Republic of Poland Rzeczpospolita Polska … Wikipedia
Austria — Austrian, adj., n. /aw stree euh/, n. a republic in central Europe. 8,054,078; 32,381 sq. mi. (83,865 sq. km). Cap.: Vienna. German, Österreich. * * * Austria Introduction Austria Background: Once the center of power for the large Austro… … Universalium
Europe, history of — Introduction history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… … Universalium
Charlotte, North Carolina — Charlotte redirects here. For other uses, see Charlotte (disambiguation). Charlotte City City of Charlotte … Wikipedia
Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… … Universalium