PUBLIC RECORD OFFICE
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C.O. 882
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PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
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14. However, with its land in so unrivalled a situation-now and prospectively with its buildings, movable property, plant and assets of so exceptional a value; with its ability to show that its business is of the soundest and most progressive character, that the money to be raised is to be expended under the best advice solely upon reproductive works and will be wanted very gradually, the Committee have every reason to hope (more especially as they feel they may assure those concerned of the Government's hearty encouragement in the object to be attained) that amongst its bankers and its larger British and foreign shipping customers the Company may be able to find, on reasonable enough terms, the money to the extent it will be neces- sary to borrow it.
15. But as the Government is aware, from overtures made to the Federated Malay States through the Governor of the Colony, the Company would prefer that the financial assistance it will require should come from the Government.
16. The main reason for this preference is simply that the Government's strong interest in the undertaking would doubtless induce it to lend the money on terms less onerous to the Company than might be expected from lenders actuated only by profit considerations; while the speediest possible completion of the work could more readily be entertained were the financial assistance on favourable terms.
17. The Committee's proposition (subject, of course, to the confirmation of the shareholders necessary under the Company's Articles of Association) would, there- fore, be that the Government should grant the financial assistance required for the work and should do so first by taking up the 8,000 shares remaining unissued of the Company's authorized capital and, subsequently, by lending to the Company against debenture bonds up to the extent it might find it necessary to be assisted.
18. The Committee's suggestion of price for the 8,000 shares would be $300, i.e., a premium of 200 per cent. Their bases for this price are:-
1st. That it was the price at which were settled the 7,000 shares taken up
by the New Harbour Dock Company,
2nd. That a year ago a demand by the Federated Malay States for about a quarter of the number took the price up to $350, and it is fairly certain that no similar demand could be satisfied in the open market without a similar result.
3rd. That with the maintenance of the present dividend (which there seems no reason to doubt) the Government, while forwarding the Colony's in- terests, would still be deriving the satisfactory return on the whole $2,400,000 of 4 per cent. per annum,
19. It seems scarcely necessary, except in the interests of perfect clearness, to say that the $1,600,000 accruing to the Company from the premium on the 8,000 shares, together with the $800,000 capital sum, would, of course, be wholly expended on the work of development and for no other purpose whatsoever.
20. The Committee would prefer, unless a quicker rate of progress in the work is decided upon than is at present conceivable, that the Government should take up the shares in two divisions of 4,000 each, with at least a year intervening.
21. The debenture interest, the Committee suggest, should not, in the circum- stances, exceed 3 per cent. per annum.
22. The 8,000 shares, together with the Federated Malay States holding, would seem to arm the Government with all the voting power it would require to give effect to its wishes in the Company's affairs. But that its control might be more constant and complete the Committee would suggest that the Government be allowed to nomi- nate two of its officials as members of the Singapore Board and one as a member of the London Consulting Committee.
23. It would be included in the understanding that a commencement to the work should be made at the earliest possible date, that acceleration of progress should be determined by, and all work done should be to the satisfaction of, the Government. But an essential of the agreement would be that the current business of the Com- pany should be hindered by the operations as little as possible.
24. I have now done my best, I trust not at too great length, to comply with your desire that the Committee should fully communicate its views on this important subject, and I would only add a concise response seriatim to the three questions you put to me, viz. :—
(1) As stated in the foregoing paragraphs 11 and 12, it is practically decided to carry out the contemplated extensions and improvements, and to
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do so within 10 years, if at all possible, from say about six months hence.
(2) The Directors would endeavour to limit their borrowing for the
£750,000.
purpose to
(3) As specified in the foregoing paragraphs 15 to 22, the Directors would wel-
come Government assistance to raise the money.
C. P. Lucas, Esq., C.B.
35728
I have, &c.,
W. G. GULLAND,
Chairman of the London Consulting Committee of the Tanjong Pagar Dock Company, Limited, of Singapore.
No. 17.
MR. LYTTELTON to GOVERNOR SIR J. ANDERSON. (Sent 4.45 p.m., October 20, 1904.)
TELEGRAM.
[Answered by No. 18.]
Have Tanjong Pagar Company any and what title in soil of lagoon for proposed wet dock!
36535
No. 18.
GOVERNOR SIR J. ANDERSON to MR. LYTTELTON.
(Received 7.55 a.m., October 24, 1904.)
TELEGRAM.
[Answered by No. 19.]
In answer to your telegram of 20th October,* Tanjong Pagar, yes, about three- quarters held under 999 years leases, remainder apparently under freehold grant.
35728
SIR,
No. 19.
MR. LYTTELTON to GOVERNOR SIR J. ANDERSON. [Answered by Nos. 21 and 34.]
(Confidential.)
Downing Street, November 4, 1904. I HAVE given very careful consideration to the proposals, contained in your confidential despatch of the 15th June,t for affording financial assistance to the Tan- jong Pagar Dock Company, in order to enable them to carry out the extensive works which they have in contemplation.
2. I have obtained from the Company a copy of the report of their Consulting Engineers, which I enclose for your information. It is stated in that report (Sec- tion 20) that "the existing facilities are taxed to the utmost and are entirely in- adequate to meet the increasing demands of the port," and, from the information at my disposal; I have no doubt of the correctness of the statements made in paragraph 2 your despatch that there can be no question of the inadequacy of the facilities at present provided, and that "delay in making adequate provision, not only for present requirements but for those of the immediate future, will be a serious injury, not only to Singapore but to the enormous British shipping interests engaged in the Eastern trade.'
of
• No. 17.
† No. 6.
20306
Enclosure in 36897; not printed here.
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