What are worries

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I was given a copy of this open letter from my great-grandfather to his employees by my great Aunt and have been meaning to scan it for a while. It’s a fascinating piece of social history, written in 1962, that makes me realise that most day-to-day worries are indeed trivial. BIA stands for British International Addressing which was a company that researched and created marketing lists that would be used for mass mailouts – really a precursor to junk mail. I will post about this company in more detail in the future.

What are worries?

I have often been asked “How could you, a man who has been at the top of a great industrial concern for so many years, ever choose the BIA as an investment and scope for your own activities?”
The answer is simple. I did not want to be confronted with the many problems, especially financial ones, which I had to overcome in the past. I was also anxious to escape the labour and union difficulties which were bound to develop. I was afraid of starting in industry since, having no technical knowledge myself, I would have to be dependent on specialists or technicians, apart from the fact that refugees were not given permission to develop any industry where the demand of the market was fully covered by British firms.
As far as BIA was concerned, I liked the variety of its activities. I realised that men of intelligence, good education, with a fair knowledge of industrial, commercial and economical problems, as well as a flair for establishing and maintaining good relations with clients, would be successful in this somewhat strange business. This opinion was fully shared by our present Chairman when he joined me in 1948. I, therefore, could foresee that I myself, my future partners and colleagues would be the masters in our own house and would never be faced with the unbelievable worries with which I had been tormented during most of my former business life. After my marriage and my examinations, I worked in my former firm for six months in Berlin and for six months in Strasbourg, and then war broke out in 1914. When I returned in November 1918, after 4 years in the Forces, my wife was terrified at seeing me in the uniform of an officer since nearly all officers had been attacked by the revolutionaries. Shortly afterwards, being just 34, I was told by my senior partner that I would be appointed Managing Director whereas he would watch and advise me in his capacity as Chairman (actually, he died after three years at the age of 58). I shuddered, because enormous problems faced me.
All our plants and monies in Alsace-Lorraine, valued officially by a special commission at nearly £2 million (about 80% of our total), were immediately confiscated by the French; my partners, born and domiciled there, were expelled as their parents were originally Germans (In 1927 – after eight years – the German Government compensated us 15%, of our losses in German Government securities bearing no interest.) Now an inflation developed, the extent of which cannot possibly be comprehended by anyone who did not experience it. The value of one gold mark rose to 100,000, 1 million and, finally, 100 million marks. To give one example – A client, to whom we had given a mortgage of 25,000 pounds repaid it and the sum received was just sufficient to buy a bus ticket worth a penny. Wages had to be sent by aeroplane to the factories in Northern and Southern Germany as the money deteriorated at least 50% the next day. No money, no shares, no Government securities had any value. This state of financial affairs ended in 1924, but my worries were not finished.
As our firm was engaged in the production of sheet iron we had to buy the raw material from the Iron & Steel Federation – a very high powered and exclusive organisation whose members were our main competitors in respect of our own products. They imposed on us impossible conditions and prices. Our plans for building our own steel works had been frustrated by the outbreak of war. I, therefore, had no other choice but to buy the majority of shares of a very well-known firm of steel works at the Stock Exchange, the possession of which automatically made us members of the Iron & Steel Federation and independent in respect of raw material. This decision had to be taken so swiftly that I could not even consult my partners. The same day I fell seriously ill and had to dictate this vital information to my secretary before being transported to hospital for an operation. The money required was lent to us without any security by well-known London merchant bankers. Then followed five very satisfactory years (1925 to 1929) but until I started playing golf in late 1928 I went every Saturday and Sunday to the office and at least once, often twice a week I had to travel at night to Dusseldorf or Cologne to attend the important Iron & Steel Conferences which lasted usually from 9 in the morning to late at night, leaving me just sufficient time to catch the sleeper back and to arrive at the office at 6.15 the next morning.
Nevertheless, I was proud of the fact that by the establishment of new factories and very hard work, our firm had again achieved a leading position in the Sheet Iron Industry in spite of the losses suffered and the mighty competition.
At the end of 1929 dark clouds covered the international financial sky. In U.S.A. the Wall Street crash started, of a magnitude never heard of before. This disaster affected the whole world. Even the Banks, with a few exceptions in Gt. Britain, had to shut their doors. Everywhere the economic situation fell into an abyss. The number of unemployed people in Germany rose to 7.5 million (35% of the working people) which was one of the main reasons for Hitler’s success. The output in our industry fell to 15% of its capacity. The financially disastrous situation compelled us to sell the Government securities received as compensation for our loss in Alsace-Lorraine at 40% of their nominal value to enable us to meet our most vital financial obligations. The trading losses incurred were absolutely enormous, especially as we tried to keep as many of our old workers as possible and as no member of our staff was given notice. Dr. Rosin, at that time a member of our Board, can confirm these statements.
Sufficient business troubles and anxieties in these fifteen years? I think so. And, yet, supported by my wife I fully enjoyed my private life whenever possible. Travelled on all holidays with the family to beautiful spots; played an taught my children all kinds of sports – swimming, skating, ski-ing, mountaineering and, last but not least, golf. Visited theatres and attended musical performances, never allowing business to affect my private life.
Then came the rise of Hitler when, for five years, we had to face the dangers of persecution and concentration camps day and night as all our efforts to sell our business were in vein before the economic situation had improved. I think the loyalty of our thousands of employees whom we had always treated well saved our lives, although many had joined the Nazi party. Quite a few Managing Directors of my faith suffered terribly after having been denounced by members of their staff.
At last in December 1937 I succeeded in selling our business but the good price we received dwindled to 5% of its value as German marks owned by emigrants had to be exchanged with a loss of 95% and, additionally, an emigration tax of 25% had to be paid.
Worries in BIA? Nonsense. No financial ones whatsoever. Considerable success in the last ten years. A nice comradeship of intelligent, competent and congenial men, filled with a great sense of duty. Enormous scope for expansion and success. Very enjoyable relations with many clients. Difficult production problems at last overcome. Staff troubles no doubt, but in times of over-employment unavoidable and everywhere.
Certainly, there are disappointments and irritations in every business – even the most successful – but whoever reads this short story will understand why I consider “worries” at BIA with a benevolent smile!

Julius Seligsohn-Netter, Febrary 1962