89
on the lines which were suggested in my despatch of the 15th of June,* but with a larger proportion of new capital-say, 33,000 shares which, with the number already held by the Federated Malay States, would, under the change recently approved in regard to the allotment of voting power, have given us control of the Company, as we should have held a majority of the share capital and of the voting power.
14. If we could get these shares at $200 a share, even if we agreed to limit the 'dividend per share to $8 for the next 15 years, while reconstruction is in progress, provided that they carried full voting powers, and to find the balance of the capital required at 4 per cent., we should still make a better bargain than if we are forced to buy at any price over $300 per share, and for the reasons given above the possibility of such a result must not be overlooked.
15. The matter is fraught with so much importance to the future of the Colony and the Peninsula, that I am confident that you will excuse my persistence in pressing my views upon you.
I have, &c.,
JOHN ANDERSON.
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No. 37.
MR. LYTTELTON to GOVERNOR SIR J. ANDERSON.
(Paraphrase.)
(Sent 3.20 p.m., January 16, 1905.)
Telegram.
[Answered by No. 38.]
I have received your telegrams of the 8th and 9th instant* as to Tanjong Pagar Dock.
I see no good reason for withdrawing the election of the Chairman from the Board. As to official members I agree.
The date to be fixed for taking over the business should not be prior to that of the passing of the Ordinance or to that of the notice given under it. Please tele- graph to me any material alterations suggested in the draft Ordinance in order that it may be communicated to the London Committee on January 20th.
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No. 38.
626
No. 35.
GOVERNOR SIR J. ANDERSON to MR. LYTTELTON. (Received 5.45 p.m., January 8, 1905.)
(Paraphrase.)
TELEGRAM.
[Answered by Nos. 37 and 39.]
I have just received your confidential despatch of 16th December, and will consider the draft Ordinance with the Attorney-General as soon as possible. I hope to publish it and take the first reading on January 20th. I would suggest that the draft should be communicated to the London Committee on that date. The Chair- man has written to me to suggest that the 1st of January current would be a con- venient date for taking over, as business is hindered by uncertainty, and the Company is daily making contracts which the Government will have to carry out. I see no objection to this proposal. I would suggest that Sir C. Smith should be suggested to the Committee as sole arbitrator. If he is a shareholder he must of course sell his shares.
669
Shares are now quoted at 350 to 355.
I am now at Penang, but leave on the 14th for Singapore.
No. 36.
GOVERNOR SIR J. ANDERSON to MR. LYTTELTON. (Received 9.15 a.m., January 9, 1905.) TELEGRAM.
(Paraphrase.)
[Answered by No. 37.]
Referring to your confidential despatch of December 16th,† I propose that the Chairman of the Board shall be nominated by the Governor, and that instead of definitely laying down that there should be two official members the Ordinance should empower the Governor to appoint not more than two official members. Military Contribution will, of course, not be payable on payments to revenue under Clause 17.
GOVERNOR SIR J. ANDERSON to MR. LYTTELTON. (Received 11.33 a.m., January 18, 1905.)
(Paraphrase.)
[Answered by No. 39.]
TELEGRAM.
With reference to your telegram of the 16th.t
The draft Ordinance, which I am about to introduce, contains all the provisions in your draft except as to official members, and contains also provisions corresponding to Clauses 24, 29 and the 4th Schedule, 40, 41, 42 and 45 of the Metropolitan Water It contains also clauses incorporating the Board and empowering it, subject
Act.
to any regulations made by the Governor in Council, to regulate its proceedings.
In Clause 13 of your draft I have altered "salary" to "fees or remuneration." As to the Chairman. He will be the principal adviser of the Governor as regards policy, and it is important in a small community, where refusal to confirm would be invidious, that the Governor, who is ultimately responsible, should have a free hand.
I hope, therefore, that you will allow me to introduce amendment in Committee. Yesterday I had an interview with three leading directors, and showed them, in confidence, the draft Ordinance; I offered them $240 a share. They will submit offer but spoke to me of $600 or $700 as a probable demand.
To prevent delay, I would suggest that Matthews should come here from Colombo and make an exhaustive examination and valuation of the property.
May I publish your confidential despatch of November 4th, and its enclosure, on Friday? At any rate, I propose to inform the Council of its substance when I introduce the Bill.
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Please reply by telegraph as to amendments and publication.
I am writing by next mail as to the interview referred to.
No. 39.
MR. LYTTELTON to GOVERNOR SIR J. ANDERSON.
(Paraphrase.)
(Sent 5.10 p.m., January 19, 1905.)
TELEGRAM.
[Answered by No. 40.]
In reply to your telegram of yesterday§ as to Chairman. I adhere to decision conveyed to you in my telegram of January 18th.†
• No. 6.
↑ No. 31.
• Nos. 35 and 36. 20503
† No. 37.
‡ No. 19.
+ No. 38.
H
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