Page 57 - Gujar Mal Modi

wishes and advice of the popular Chief Minister, Mr. Modi decided to change his

style of dress. The expensive dresses of the industrialist gave way to simple ones
and the royal-style turban gave way to a simple Gandhian style white cap.

Partition of the country in 1947 brought in its wake several problems. Lakhs of

refugees from areas which went over to Pakistan migrated to India. Their reha-
bilitation caused severe strain to the country’s economy. The new government

of independent India decided to adopt a policy of promoting industries both in
the private and public sectors.

Mr. Modi had already placed orders for machinery for the the textile factory with
a firm in England in 1947. The arrival of machinery in India had been delayed

much beyond the scheduled period. Mr. Modi had so far mobilised 50% of the
share capital and mobilisation of the remaining 50% was creating difficulties be-

cause of the non-arrival of the machinery. Many of the refugees who had pur-
chased shares of the Modi Spinning & Weaving Mills Co. Ltd. were obliged to sell

their shares in the market with the result that the market value of the shares fell
to almost half their face value. Mr. Modi had to step in and purchase a large num-

ber of shares in order to maintain the price-level. This restored the confidence in
the share market.

Mr. Modi was anxious to know when exactly he could expect the imported ma-

chinery from England. Therefore, in May I 948 he sent his younger brother Mr.
Kedar Nath Modi to England. However, in England he was greatly disappointed

by the lack of sympathy shown towards Indian business interests by the Indian
ambassador there. Mr. Kedar Nath Modi issued a press statement saying that the

Modis had come to the conclusion that conditions in the British industries in En-
gland were deteriorating and since they had not been able to get all the textile

machinery for which orders had been placed as far as two years back, they were
now obliged to place their orders in America. This statement was refuted by the

Minister for Trade in the British Government who insinuated that the Modi be-
longed to an average class of Indian businessmen and may not be in a position

to pay for the machinery. Mr. Kedar Nath Modi thereupon issued a rejoinder. He
declared that he was prepared to show ‘letters of credit’ and other documents to

prove that the Modis were in a position to pay for the machinery worth Rs. ten

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