MAN AO I IVO DIRECTORS' REPORT
To Shareholders.
In compliance with art. 46 of the articles of association we have the honour to report
on the company's status.
Our business in the year 1940 was, of course, strongly influenced by the fact that The
Netherlands were involved in the war. The first four months of 1940 had a normal course;
the monthly figures and the results obtained did not differ considerably from those relating
to the preceding year. But the situation became quite different after May 10th 1940.
Our principal building at Rotterdam, our office at the Leuvehaven in that city and our
office at Middelburg were destroyed by fire; one of the other offices at Rotterdam and our
office at Helmond were slightly damaged. The strong rooms at Rotterdam and at Middelburg
appeared to offer efficient protection against the fire. Management and administration at
Rotterdam were temporarily removed to two houses hired for the purpose; at Middelburg a
suitable emergency-building could be fitted up.
We have experienced great benefit from our shadow-administration, which has rendered
it possible for us to reconstruct within a short time the administrative details which were
destroyed by the fire. Several employees at Rotterdam and Middelburg lost their furniture
and clothings; we gave them assistance pending a definite arrangement. Some of our debtors
suffered war-damage, which, however, appeared to be small and did not affect the position
of this Bank. We dare say that in case of reasonable execution of the proposed com
pensation of the damage caused to our buildings at Rotterdam, Middelburg and Helmond, the
financial loss sustained by us as a direct consequence of the war will appear not to be
considerable.
Thanks to ample liquid means we could, after the outbreak of the war, satisfy without
difficulty the cash-requirements of trade and industry in the centre of the country and, no
sooner communications were restored, also anywhere else in the country.
The supply of raw materials and of other goods to be imported from abroad experienced
serious impediment, in consequence of which existing stocks were manufactured and sold, so
that in cases where replenishment of same was not possible or to a limited extent only, trade
and industry redeemed their bank-debts and saw their liquidity increase. In the banking-business
this caused a decrease of debtors and an increase of deposits and creditors. For the increase
of our floating means resulting therefrom we could find employment in the shape of investment
in treasury-paper, our portfolio of which has considerably increased. But we need certainly
not point out that we are anxiously looking forward to the time that we shall be able to
resume our normal function and to supply again, as formerly, credit to commerce and industry
on a larger scale, in addition to a moderate investment in treasury-paper.
