THE BINYAN: A South African Business Enterprise in
Palestine.
By the Secretary, Mr. I. B. RUDAIZKY, C.A. (S.A.).
DURING the Twelfth World's Zionist Congress at Carlsbad, a
few prominent South African business men present at the Congress met and
discussed a scheme for the formation of a company on sound commercial lines to
take part in Palestine enterprise, mainly as an instrument whereby South
African Jewry should be enabled to participate in the development of Palestine.
These men felt that in the formation of a Company of this
nature they would be supplying South African Jewry with a means with which to
fill a real desire to take part in the commercial development of Palestine.
Mr. J. Janower, at that time Treasurer of the South African
Zionist Federation, was one of these gentlemen, and as he was about to leave on
a visit to Palestine he undertook to investigate the conditions there and to
report the prospects of the projected undertaking.
In Palestine Mr. Janower made searching investigations, and
upon his return to London he reported to these gentlemen, who included Mr. B.
Gordon, Vice-President of the South African Zionist Federation, that there was
a wide field for profitable investments, and he brought with him a number of
sound business proposals on which it was resolved to act.
At a private meeting held in Johannesburg on January 8th,
1922, which was attended by a number of prominent Johannesburg business men and
representatives of other parts of South Africa, Mr. Janower submitted a report
on investigations carried on by him whilst in Palestine, and stated that in
London the others who had taken part in the preliminary discussions had agreed
to take the necessary steps for the formation of a South African Palestine
Enterprise Company which should have as its object the investment of its funds
in Palestine in such a way that it should both benefit the country and its
people, and allow for a suitable margin of profit to be paid to shareholders.
As a first direction upon which the activities of the
Company should be concentrated he recommended house-building, as well as the
building of suitable accommodation for small industrialists. He placed before
the meeting correspondence on the subject, and after discussion it was proposed
and agreed that the South African Palestine Enterprise (Binyan) Corporation,
Limited, be formed and registered in the Transvaal with a capital of £100,000,
to be divided into 20,000 shares of the value of £5 each.
Although the registered capital of the Company is £100,000,
the issued capital is only £60,000. In 1922, £25,000 worth of shares were
offered to the public for subscription; in February, 1925, £10,000 was offered
and was immediately followed up by a further offer of £15,000 worth of shares
in April, 1925; in 1927, £10,000 worth of shares were offered, making a total
issue of £60,000, and it is proposed at a very early date to offer the balance
of the unissued capital of £40,000 to the public.
The original signatories to the Memorandum and Articles of
Association were Messrs. Hillman Bros., J. Janower, B. Gordon, L. Braudo and I.
Kuper, all of Johannesburg, N. Kirschner, of Benoni, and J. Gesundheit, of Cape
Town, with Messrs. Hersch and Halaban as the first secretaries.
The Company was registered in June, 1922, and investigations
for the immediate commencement of activities were proceeded with.
Amongst the first interested parties to investigate
conditions in Palestine after the formation of the Company were Mr. A.
Schlosberg, of Johannesburg, and the late Mr. S. Meyerson, of Pretoria. As a
result of the recommendations submitted by these gentlemen, and Mr. Abraham
Levy, it was decided that the Company's operations should be concentrated on
house-building.
Originally the intentions of the Company were to start
activities at Ramat Gan, an outlying suburb of Tel Aviv, but unfortunately the
colonists failed to arrive at a satisfactory understanding with the Company,
and after considerable delay the Board was compelled to remove the sphere of
activities elsewhere.
By that time Mr. A. Levy had been appointed as the Company's
representative, and he recommended Haifa as a suitable town for investment. The
late Mr. S. Hillman, who visited Palestine, strongly supported Mr. Levy's
recommendation, and urged the Board to proceed with its operations in Haifa.
Together with Mr. Levy there was then an Advisory Council in Palestine
consisting of prominent Palestinians, and this Advisory Council now consists of
two Palestinians in the persons of Messrs. J. Klebanow and J. Itin, of Haifa,
and three South Africans, in the persons of Messrs. J. Gesundheit, C. Joffe and
L. Policansky, who act as the Board of the Subsidiary Company in Palestine,
together with Mr. Levy.
The ultimate control of all business activities is in the
hands of the South African Board, which comprises the following well-known
business men: Messrs. B. Gordon (Chairman), W. Hillman, J. Janower, L. Braudo,
H. Lourie, A. Sive, M. Reuvid, all of Johannesburg; J. Gesundheit and C. Joffe,
formerly of Cape Town and now of Palestine (who are represented by alternates
in the persons of B. S. Hersch and D. I. Fram, of Johannesburg); M. Morrison,
of Escombe, Natal; and J. B. Lurie, of Tweespruit, O.F.S.
Adequate provision exists in the regulations laid down by
the South African Board for the complete control of all investments, and at the
last annual meeting, held in September, 1928, the report showed that to that
date 172 loans had been granted to colonists in and around Haifa, totalling
approximately £54,000. On this page there appear a few photographs of houses
erected with Binyan money in Haifa.
For a long time to come house-building will continue to be
one of the principal enterprises of the Binyan, and the Binyan has been
responsible for the erection of a large percentage of Jewish-owned houses in
Haifa. This is the maximum that could have been achieved on account of the
Company's limited capital, and South African Jewry can pride itself that by
means of the Binyan an opportunity has been given to many colonists to build
their own homes in Palestine, thus preventing property owners from obtaining
high rents from these people, so that the Binyan, in addition to introducing
much-needed capital into Palestine, is also enabling colonists to obtain their
own homes by reasonable monthly payments. The Binyan does not encourage
speculation in property, and will only advance loans to people who build their
own homes. The maximum which is granted to any individual applicant is £400, as
the aim of the Binyan is to assist the small man. The borrower is allowed 12
years within which to repay his loan in equal monthly instalments of capital
and interest. Although the Company was registered in 1922, the many delays in
conducting investigations, etc., did not allow of actual business being done
until 1925, and it is pleasing to note that the Company is now paying annual
dividends of 5 per cent.
With more capital at its disposal there is no doubt that the
Binyan could extend its activities to other centres, but Haifa offers
sufficient scope for the investment of funds now in hand. That Haifa, as the
centre of activities, was a wise choice is now fully evident. Haifa harbour is
at present in course of erection, and this will become Palestine's principal
port.
Recently the Company has extended its activities to cover
work generally undertaken by Boards of Executors, and the Binyan has already
successfully placed a number of loans on behalf of clients. The Company will
continue to encourage this branch of its activities so as to increase the
influx of capital in Palestine and so further assist in the development of the
country.
The Binyan is the only Company of its kind in Palestine that
has succeeded in attaining its objects. The Company has gained the respect of
Palestinian Jewry on account of the systematic manner in which activities have
been conducted. Investigations were carefully carried out, with successful
results. Similar corporations promoted in other countries are attempting to
model the conduct of their business on the methods of the Binyan. South African
Jewry can be proud of this young but immense force, which is the product of its
continued support.
The Head Offices of the Company in South Africa are at
Progress Buildings, 156 Commissioner Street, Johannesburg.
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