PUBLIC RECORD OFFICE
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Reference :-
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
8PUBLIC RECORD OFFICE, LONDON
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(c) that it is contemplated, vide paragraph 9 (a) to proceed with the various works recommended in the Managing Director's Report of 9th January,
1904..
33. The issued and paid up Capital of the Tanjong Pagar Dock Company is 37,000 shares of $100 each, representing $3,700,000. To-day's value of each of these shares is, roundly speaking, $300.
34. To be absolutely certain of getting control at all times, Government would require to buy, say, 19,000 shares. Purchase cost of these, even if they could be got at $275 per share, wouid represent $5,225,000; or if bought at $300 each, $5,700,000. 35. If the Federated Malay States were seeking an open investment for $10,000,000, I assume they would expect to get about per cent. per annum on the money lent.
36. The same sum if lent to the Tanjong Pagar Dock Company at 3 per cent. would represent an apparent sacrifice in interest of $100,000 per annum.
37. The apparent sacrifice, for the present, of that difference, I beg to urge, will not in the end prove an exorbitant price to pay if it will now obtain for Government (as there is the chance of its doing) the control that will-apropos of the Federated Malay States Railway terminus-sooner or later have to be obtained or purchased,
38. If it is the case that some rule exists laying down, in a general sense, a minimum rate of interest below which Government funds may not as a rule be in- vested, and if this conflicts with the present application of the Tanjong Pagar Dock Company, then I would most respectfully suggest that this case be put forward and urged to whoever be the supreme or deciding authority as a very special case calling jor particular and exceptional consideration.
39. It is not at all an instance of investing funds in an ordinary sense. It is to lay out money (on absolutely sound security) for the attainment of certain advan- tages which in a few years hence will, I believe, prove a necessity to the State, and which, if now left to the future, will then be difficult and very costly to obtain by ordinary or other methods.
40. With this Colony yet to rise in the future, as it must do, still much further than it has done in the past few years, will be economical to get control now, if this can be obtained, in the way above suggested. To wait for six or eight years when property in the Tanjong Pagar locality will assuredly be much dearer, and then to buy control will on the other hand prove an exceedingly costly operation.
41. The aim of the London Ring is that Government in time should buy out the Company and create an official "Port Trust," and the idea of these gentlemen of the value they should get for their shares, based on the value of the Company's land and business, is $700 dollars per share.
42. The case, in my view, certainly contains the possibilities of an opportunity to Government, never likely to occur again in so favourable a way; and one that I venture to suggest should not be lost for want of its being specially and particu- larly urged upon those with whom may lie the final decision.
Singapore, February 15, 1904.
JOHN ANDERSON.
NOTE, written on 17th August, 1904-Since the foregoing Memorandum was written, there have been developments that would lead me, to-day, to modify what I wrote in February last in paragraphs 24a, 28, and 31 hereof.—J. A.
(Private.)
DEAR MR. TAYLOR,
(F.)
Singapore, February 22, 1903. THANK you for sending me draft of the proposed "Tanjong Pagar Wharf Improvements Bill," yesterday. I now send you suggestions thereon that have occurred to me, and venture to commend these to you.
If you want any reasons or explanations bearing on my views, or wish to talk the subject over in any way, I am always at your call."
In haste
The Honourable Wm. T. Taylor, C.M.G.,
Government House, Singapore.
Yours, &c.,
JOHN ANDERSON.
(Memorandum. Confidential.)
67
(F.)
Singapore, February 22, 1904.
"TANJONG PAGAR WHARVES IMPROVEMENT ORDINANCE."
(a.) Preamble (last sentence but one):-
In the draft Bill this reads:-
"And whereas to facilitate communication between the said Company and the Government of the Colony it is expedient that the Governor should have, &c., &c.”
(6.) I think there is danger in setting forth here any limitation to the reasons that have led to the arrangement by which Government is to have the appointment of two members of the Board. The sentence as it reads at present gives opening for its being construed in the future as limiting the functions of the Government nominees on the Board.
(c.) I would suggest that it be made to read as follows:-
"And whereas the Company has grown into is in) a position of much responsibility in relation to the shipping trade generally of the Settle- ment, and it is therefore expedient that the Governor should have power from time to time to appoint two persons to be Directors of the said Company."
(d.) I have a strong feeling that this opportunity should be availed of to "clinch," as it were, the fact that the Company has grown into a position of responsibility to the Colony in relation to the handling of and facilities to the tonnage overturn of this Port.
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(See also remarks apropos of “ Objects and Reasons.")
(e.) If the foregoing suggestion (vide paragraph (c) hereof) be not acceptable to Government, then I would suggest that at the least the words in the Preamble from 'to facilitate," inclusive, to "of the Colony," inclusive, be deleted.
(f) Section 5.-I suggest that in this the words " Article 84 of " be deleted. The Company's Articles may from time to time in the future be altered (as has happened in the past), and the number of the Article now stated may at some future date not correctly apply.
(g.) It occurs to me to suggest that in Section 5 the opportunity might now fairly be taken of limiting the maximum number of Directors. At present there are (9) nine Directors. Two Government nominees would make a total of eleven persons.
The Section (5) might be made to read as follows:-
"In addition to the Directors of the Company appointed by the Company under the Articles of Association thereof, who shall at no time exceed nine persons thus appointed, it shall be lawful for the Governor from time to time to appoint two persons to be Directors of the said Com- pany and from time to time to cancel such appointments, and to appoint others in their stead."
(h.) Eleven persons are fully ample, and it seems undesirable to leave the door open for the appointment at any time by the Company of extra men who might be brought in to swamp by their votes the votes or policy of those men on the Board who are independent.
(i.) Section 6.-I would suggest adding to this on the second line after the word "powers," the words "and shall receive all the fees or emoluments." It seems advis- able to make this clear, as it may some day happen that. Government nominees to the Directorate are not Government servants.
Objects and Reasons.
(j.) In this there is a mistake that I think should be corrected. It now reads:-- the public are provided free of charge with a site for a station of the Singapore' Kranji Railway.'"
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