Silesian-American Corporation
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Silesian-American Corporation (SACO) was registered as a corporation in
Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...
in 1926 to assume ownership of the Giesche Spolka Akcyjna ( Giesche) that was registered as a corporation in
Katowice Katowice (, ) is the capital city of the Silesian Voivodeship in southern Poland and the central city of the Katowice urban area. As of 2021, Katowice has an official population of 286,960, and a resident population estimate of around 315,000. K ...
, Poland earlier during the
interwar period In the history of the 20th century, the interwar period, also known as the interbellum (), lasted from 11 November 1918 to 1 September 1939 (20 years, 9 months, 21 days) – from the end of World War I (WWI) to the beginning of World War II ( ...
. SACO gave substantial loans to Giesche’s Erben by selling $15,000,000 collateral trust
sinking fund A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt. In North America and elsewhere where it is common for government entiti ...
bonds that would mature on August 1, 1941. Giesche was that part of the holdings of the German corporation Bergwerksgesellschaft Georg von Giesche's Erben (commonly referred to as Giesche’s Erben) that were in the previously German controlled
Upper Silesia Upper Silesia ( ; ; ; ; Silesian German: ; ) is the southeastern part of the historical and geographical region of Silesia, located today mostly in Poland, with small parts in the Czech Republic. The area is predominantly known for its heav ...
territory with the re-established Poland. SACO was 100% owned by: the Silesian Holding Company (51% of
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other C ...
and 58,33% of
preferred stock Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt ins ...
) and Giesche (49% of common stock and 41,67% of preferred stock). Silesian Holding Company was owned by
Anaconda Copper The Anaconda Company, also known historically as the Anaconda Gold and Silver Mining Company (1881–1891), Anaconda Mining Company (1891–1895), Anaconda Copper Mining Company (1895–1899), Amalgamated Copper Company (1899–1915), and Anacon ...
Mining (65%) and
W. Averell Harriman William Averell Harriman (November 15, 1891July 26, 1986) was an American politician, businessman, and diplomat. He was a founder of Harriman & Co. which merged with the older Brown Brothers to form the Brown Brothers Harriman & Co. investment ...
. Harriman's portion would later be owned by Harriman, close affiliates and associates.


WWII

Following invasion in 1939, Silesian-American was among the Polish corporations and companies that were brought under the supervision of a German military commissar, Dr. Albrecht Jung. During this time SACO was denied all income from the European Silesian-American activities and affiliates, and was hence unable to pay dividends on its outstanding bonds, which came due in 1941. At the time, the company had only about half a million dollars in cash. Accordingly, it filed a petition for reorganization under Chapter X of the U.S. Bankruptcy Act.


Repatriation scheme

Before entry to WWII by the U.S., the owners and leading managers of Giesche's Erben sought, through a "repatriation scheme", to regain legal control of Silesian-American through the leadership of Eduard Schulte, the Giesche’s Erben General Manager, and Jung. In 1941, the Swiss bank LaRoche acted jointly with Schulte to register another company in Switzerland, Internationale Kapitalanlegen Gesellschaft (Ikap). Schulte convinced Harriman and Cornelius Kelley (president of Anaconda Copper) to sell their shares in Silesian Holding Company to Ikap. However, the action could not be completed without coming under the scrutiny of the U.S. government owing to the Presidential freeze order, which was extended to Switzerland on June 14, 1941—the order mandated that transactions which potentially could benefit an enemy be subject to the review and approval of the
United States Treasury Department The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States. It is one of 15 current U.S. government departments. The department oversees the Bureau of Engraving and ...
. The first of three applications to transfer stock ownership from U.S. holders to enemy holders was refused by the Treasury Department on July 26, 1941; the other two were in August and December. On November 17, 1942, the Alien Property Custodian as authorized by the
Trading with the Enemy Act Trading with the Enemy Act is a stock short title used for legislation in the United Kingdom and the United States relating to trading with the enemy. ''Trading with the Enemy Acts'' is also a generic name for a class of legislation generally pas ...
, took over control of the German-owned shares of the Silesian-American Corporation. 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 action effectively put a stop to Schulte’s repatriation scheme.


The post-war times

Before Silesian-American was finally dissolved, it took part in several legal proceedings in the 1950s.United States Court of Appeals Second Circuit, Dec. 26, 1950. CONWAY v. SILESIAN-AMERICAN CORP. (which may be found a

); United States Court of Appeals Second Circuit April 13, 1953 CONWAY v. UNION BANK OF SWITZERLAND (which may be found a

); United States Court of Appeals Second Circuit Dec. 6, 1956 SCRIBNER & Miller v. Francis CONWAY, Trustee of Silesian-American Corporation (which may be found a

)


References

{{Reflist


External links


Time Magazine Jun. 14, 1926

United States Court of Appeals Second Circuit, Second Circuit. July 3, 1946 SILESIAN-AMERICAN CORPORATION et al. v. MARKHAM, Alien Property Custodian

U.S. Supreme Court Dec. 8, 1947 SILESIAN AMERICAN CORPORATION V. CLARK

Sixteenth Annual Report of the Securities and Exchange Commission, Fiscal Year Ended June 30, 1950, United States Government Printing Office, Washington: 1950
an
part2
) Many Polish language sources, concerning mainly the history of Silesian industry, the history of
Katowice Katowice (, ) is the capital city of the Silesian Voivodeship in southern Poland and the central city of the Katowice urban area. As of 2021, Katowice has an official population of 286,960, and a resident population estimate of around 315,000. K ...
and its districts, web pages of particular Polish coal mines. For example:
www.giszowiec.sewera.plwww.kopalnia.com.pl
*The book “Secrets of Upper Silesian Corporations” by Jerzy Jaros – in Polish („Tajemnice górnośląskich koncernów” Śląski Instytut Naukowy,
Katowice Katowice (, ) is the capital city of the Silesian Voivodeship in southern Poland and the central city of the Katowice urban area. As of 2021, Katowice has an official population of 286,960, and a resident population estimate of around 315,000. K ...
1983) Silesian-American history Companies based in Delaware Mining companies of Poland American companies established in 1926 Companies of the Second Polish Republic