PUBLIC RECORD OFFICE
Reference :-
C.O. 882
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
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81. In my view it will be a hardship and an injustice on the general community of Singapore if the policy is agreed to and accepted, and the practice perpetuated of a small group of London merchants, long retired from the Straits, being officially recognized as having a final "say" and direction in what unquestionably are the internal local affairs of the Colony.
82. To establish this, in any way, would, I venture to think, be an error fraught with inconvenience if not, indeed, danger, besides constituting a hardship, injustice, and slight on a community, the majority of whom, and all those free to think for themselves, have grown to feel, and feel very strongly, not only that persons on the spot are those best and rightly able to judge what the place requires, but that there is an amount of interference (actual and attempted) by retired and out- of-place as well as out-of-date gentlemen in London, with the internal affairs of and freedom of opinion in the Colony, that is detrimental to its best interests, and that at times even flavors of impertinence.
83. Whoever such Government nominees for a Controlling Committee in London would be, if they be Singapore men, it is, I think, certain that two or three years' absence from Singapore will be enough to put them quite out of accurate touch of the place and its people, and of the requirements of these. Surely we have already had sufficient evidence of this in the present London Consulting Committee itself!
84. The suggestion that there should be upheld a system giving control, direction, and the power or right of veto to a group of retired merchants 7,000 miles away from the scene, over the working of machinery on which more than one-half of Singapore's whole volume of shipping trade is dependent, is one that I most earnestly hope will never be adopted.
85. Very respectfully, but most strongly, would I venture to urge that the present position and its drawbacks, and the complete remedy for these for all time should now be boldly faced, without any mincing of matters. And the remedy I helieve can be attained by a decision that Government shall finance the Company for these big works; one minimum condition, as quid pro quo for providing heavy finance, being, that all direction must lie in Singapore, immediately at the hand of the Government Authorities there; no London intermediaries. And I believe that the clearest and surest way of attaining this is to require that one-half of the Directorate in Singapore, plus one more man, shall be in the Governor's appointment; the rest elected by the shareholders. Only in some such way as that can effectual responsibility be got to lie in the place where it properly and correctly, I urge, should lie, viz., Singapore.
86. The shareholders of the Tanjong Pagar Dock Company, whether they be in England or in Singapore, or elsewhere, must, of course, have representation of their interests and views. But surely it is not only enough, but is strictly proper, as well as quite fair, that their representatives should be on the Board of Direction created by themselves for directing and carrying on the work, business, and policy of the Company? Their money is in Singapore, their business is in Singapore, and, as a business, it is one vitally affecting the interests of Singapore. The shareholders already have their representatives and mouthpieces on the Company's Board in Singapore, men who are admitted to be competent of conducting and directing the business of large commercial firms in Singapore, and who do so with success.
87. Then why the necessity or occasion for a system of dual control and direction from London, that there are now such strenuous efforts to perpetuate and secure?
88. In this connection I have heard quoted the argument that there is in f.cndon a "Committee "of the Hong Kong and Shanghai Banking Corporation, this latter an institution which has its head office and direction in Hong Kong. This suggested instance of analogy to the case of the Tanjong Pagar Dock Company must, however, have been quoted in misapprehension. The functions of this last- mentioned Committee are, I am informed, purely of an advisory nature to the branch of that bank established at, and doing large business in, London. In no sense does it control or interfere with the affairs or direction of the bank at its head office in China.
89. Cases more analogous to that of the Tanjong Pagar Dock Company are the businesses of the "Hong Kong and Whampoa Dock Company, and the " Kowloon Wharf and Warehouse Company," both of Hong Kong.
90. I am not aware that either of these Companies, which are large and import- ant factors in facilitating the trade of Hong Kong, has had any control or direction from London. And I venture the opinion that if control and direction from London
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had existed in these two cases neither they-nor Hong Kong in as far as the existence of these Companies has affected the prosperity of that port-would to-day have been in the satisfactory and up-to-date position that they are in.
91. In undertakings of these kinds it is simply not possible that complete Success can be attained when there is dual control—such as that in London as well as in Singapore-that for years has hampered those on the spot desirous of raising the efficiency of the Tanjong Pagar Dock Company to a point that would satisfactorily meet the necessities of the port.
92. With this Company, the circumstances and position of to-day, the commotion that has arisen out of disclosures publicly made at the Tanjong Pagar Dock Company's General Meeting on the 22nd March last (not one single item in which has been, nor can be, refuted nor satisfactorily disposed of), and the fact that the Company has now had to appeal to Government to lend it millions of dollars to rectify-all in a lump-the accumulated result of failure to attend gradually and continuously to the process of building up the Company in efficiency in and throughout years past, -urely these must all be evidence sufficiently convincing of what dual control has meant in the case of the Tanjong Pagar Dock Company, in which the governing and directing voice has over all these years lain with gentlemen in England, whose chief personal interests and whose leanings have been, and are, as desed in paragraphs, 10 to 16 of this memorandum.
93. So preposterous has the condition been that it is almost difficult to believe it has existed; nevertheless, it is a fact that, for twenty years and more, the Articles of Association that govern the powers and doings of the Directors in Singapore of this Company have-throughout all that time-debarred it, and still debar it-to-day. from entering into operations involving $50,000 (approximately £5,000) without first getting the approval and sanction of people in London to what they (the Directors in Singapore) would do! This restriction was created by the London Shareholders; the London Committee insists on its being complied with; not only have they no intention of altering the position, but they are striving to get it perpetuated. It is a condition-and has created in Singapore a situation that is not only ages behind the times, but that is ridiculous.
94. 1 believe that shareholders in England and the gentlemen at present forming the London Consulting Committee of the Tanjong Pagar Dock Company have argued that the Board of Directors in Singapore as to-day constituted is not representative of the shareholders in England, because they (the Singapore Directors) more accurately represent the interests of large steamship companies using the Company's premises and facilities. Such a presentation of the case I must, even at the risk of being thought impolite, characterise as at least misleading.
95. Not only are a majority of the present Board in Singapore the business representatives, partners, and attorneys, and the nominees of gentlemen constituting the London Committee, but no man-if the shareholders in England choose to vote against his appointment-can be a member of the Tanjong Pagar Dock Company's Directorate in Singapore, or of the Committee in London. The entire constitution of these has lain under the control of shareholders in England under the voting powers possessed by the latter.
96. But let it for a moment be assumed that the Directors in Singapore do represent steamship companies requiring facilities from the Tanjong Pagar Dock Company.
97. To that I would say, that these are the very men who, from their knowledge and practical experience of the Company's shortcomings, of what is most needed. of where the shoe pinches, of where, and how, and why the interests and requirements. of shipping are hampered or short-served-these men if not directed, commanded, and bullied into being mere marionettes" of London " Seniors." if allowed to think for themselves, to exercise their own judgment, to act on their own discretion and initiative, and if freed from what has grown into fear of, and subjection to, dictators in Europe, on whose favor their positions and future depend-are exactly the men who know, better than any one else, how the Company should be managed, what it requires, and what ought to be done for it, and for the trade that it is there to
serve.
98. While on the one hand it is upon the most efficient catering by the Company to the interests and requirements of shipping that the Company's well-being depends. on the other hand the representatives of steamship companies can only have as their highest possible aim that the Tanjong Pagar Dock Company shall so efficiently equip itself as to do the best possible work for the vessels that it serves.
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PUBLIC RECORD OFFICE
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PUBLIC RECORD OFFICE, LONDON
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99. Not only do the interests of those giving the service, and of those requiring and receiving it, really depend, in the long run, one on the other, but the Tanjong Pagar Dock Company has grown, and put itself into a relationship and position of onerous responsibility to the port so unique and so undeniable that the shareholders were, at one of the Company's General Meetings about two years ago, openly told and warned that if conditions arose creating the question of whether the pockets of shareholders on one side, or the interests and progress of Singapore as a port on the other side, must suffer, the pinch would, undoubtedly, have to fall upon share- holders. And this is exactly what now is about to happen; but, naturally, it is the reverse of being agreeable to the majority of shareholders.
100. If Government decides to finance the Tanjong Pagar Dock Company, then side issues that I view as of very great moment to the general community of Singapore will hang upon whether the conditions that Government attaches to its lending of money will be such as to have the effect of abolishing the control and vetoing powers of the Tanjong Pagar Dock Company's Committee in London, or will maintain and perpetuate these.
101. The extent and effect of it may not be fully known, except to persons who have had inner knowledge and experience; but all the same it is a fact that upon many members of the Singapore Community, who ought to be men free to think, judge, and act for themselves in matters concerning and furthering the internal working and well-being of the Colony, there has grown and is imposed a system of repression that has the effect of seriously crippling, and, in some instances, of paralys- ing independence of thought and action and initiatory faculties.
102. This has arisen from a practice (long in vogue, and now much grown) of dictation and command in regard to local or home affairs of the Colony imposed by the senior partners retired to Europe of the larger and more important commercial firms in the Straits, upon their junior partners or managers resident in the Colony.
103. The effect of this is not solely upon the junior partners and managers of these important firms, but has extended to many members of the community who have, with these business relationships that might be prejudicial if they ran counter to the views or policy known to be held or advocated by these "seniors."
104. The Board of the Tanjong Pagar Dock Company and the Directors of that Company's affairs furnish a striking example of how this has worked. Numerous instances of bare fact were given of this at the General Meeting of that Company held in Singapore on 22nd March last.
105. But this pernicious practice of interference and dictation in the local affairs of the Colony by out-of-date men in London (bordering, as it sometimes has lone, on impertinent interference) is by no means confined to the affairs of the Tanjong Pagar Dock Company,
106. These London "seniors" are the same group of Singapore merchants now retired to, and established in, London, who pull wires to manage the Tanjong Pagar Dock Company in their own way.
107. Most of them, too, are men who pose in London as voicing the views of, or being entitled to represent opinions held by, the communities of the Straits Settlements on any or all local matters.
108. They are not now so entitled, nor do they now thus represent. There certamly was a time, years ago, when this was more accurately the case; but that day has passed, and rightly so. The general community of the Straits Settlements, and the trade of the Colony, have grown far beyond this small group of London interferers and dictators, whose total number of leading men is only about half a dozen, if, indeed, as many.
109. But, small though their number be, they happen to represent most of the more important commercial firms of the Colony, whose managers on the spot are more or less looked on out there as among the leaders of the community, or as those who should be: so the pernicious effect of the domination from London is felt all the same.
110. There is hardly a subject or matter of local effect on which these London gentlemen do not, behind the scenes, send out commands and directions, and pull wires.
111. Among these "London Seniors" are some who for years past have depre- cated, or even forbidden that their junior partners and managers in the Straits shall lend aid by service on such bodies as the Legislative or Municipal Councils. (There now said in the circle of has, I believe, lately been an exception to this, but it
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Straits people in London to have leaked out here that special permission was in this instance accorded from London, "so that the interests of shareholders in England; of the Tanjong Pagar Dock Company might be watched on Legislative Council.")
112. In this small group of Straits merchants retired to London are those who some time ago commanded that their representatives in Singapore should move and agitate against Messrs. Coode, Son, and Matthews' scheme for enclosing the Singapore Roadstead.
113. They claimed that their moving thus was inspired by their having at heart only interests of the Colony; but it is an open secret in Singapore that they moved in the fear that these harbour works will depreciate the future value of some water-side properties in which their individual interests are concerned.
114. Some of these "London Seniors" are the same gentlemen who are largely responsible for, and have fought for, the maintenance of the "Straits Shipping Con- ference," a combination that not only has the effect of debarring an outside. British -teamer from loading in the Straits for Europe, but that works in combination and co-operation with powerful foreign companies, who (the latter) have fattened on a system forced upon and exacted from the Colony of abnally high freights to Europe (absurdly so as compared with freights current in other ports of the world where there is free competition). (See Report, dated 23rd August, 1902, of Commis- sion of Inquiry held in Singapore, particularly page 7 "g," and paragraph 26, Legis- lative Council paper No. 40, of 1902, of the Straits Settlements.)
115. To this fattening of foreign steamship companies by their participation in abnormally high artificial rates of freight imposed (by a ring that includes very large and purely German interests) upon the trade of the Straits Settlements and Malay Peninsula, may, I believe, be indirectly attributed, to considerable extent, the fact that the German flag over steamers frequenting Singapore Harbour has very largely displaced the British one, if not in actual volume, then most certainly in proportion.
116. To any one who in this respect has seen in Singapore Harbour, twenty years ago, little other than tonnage of British ownership, but who to-day sees there chiefly vessels flying the flag of the German participators in the "Straits Shipping Conference," the change that is there now must, at the least, irritate his Imperialistic instincts, if he possess any worthy the name.
117. Among the men in London upholding and promoting the condition of things towards which the "Straits Shipping Conference" has helped, and is helping, are gentlemen who pull the directing wires of the Tanjong Pagar Dock Company, with their representatives on the Singapore Board of that Company, of whom (5) fire of these latter are agents for steamship companies constituting that Shipping "C'onference" or "Ring."
118. An opportunity seems to me now to offer by which Government can greatly help to dissipate the undue interference of London intermeddlers in the home or internal affairs of the Colony. This, I believe, can be attained to consider- able degree and advantage if Government will now take the stand of declining to admit or recognize the right of immediate control and direction over the internal local affairs of the Colony by a group of gentlemen retired to London.
119. In the case of the Tanjong Pagar Dock Company, an institution in direct relationship and onerous responsibility to the trade of Singapore, relationship that has been growing in its responsibility from year to year, it has unquestionably been detrimental to the best interests of Singapore that in the conduct of that Company's affairs there has been compulsory need of taking counsel with men retired to London. and of obtaining the concurrence and approval of these, before the Company could move in policy or in any transaction of local material moment.
120. My view, which I tender with every respect, is, that it will amount almost to a calamity if, in the circumstances now apparently constituting a reasonable oppor- tunity. Government does not make a strong attempt and stand, to remove the dis- abilities and disadvantages that I have endeavoured to explain the existence of.
121. From time to time over the past few years it has been urged by members of the Singapore community, and by the Singapore "Press," that the time has
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