2 Senior Clerks

·

750 0 660 0

3 Junior Clerks

300 0

500 0

445 0

1

Staff Clerk

+

1,246 0 365 0

8 Second Class Clerks (Higher Grade) •

350 0

312 0

335 0

250 0

303 0

350 0

350 0

340 0

2,590 0

11 Second Class Clerks

204 10

154 10

141 0

128 10

118 0

114 10

85 0

77 10

77 10

77 10

76 10

1,255 0

25 25

6,865

Railway Audit and Railway Work.

1 Redundant Senior Clerk

1

Senior Clerk

1 Junior Clerk

8

3

800 0

520 0

305 +

215

CH

£

B-

2,287 0

1,625 0

APPENDIX IX.

MEMORANDUM BY THE CROWN AGENTS ON CERTAIN POINTS OF THE EVIDENCE TAKEN BY THE COMMITTEE,

The Crown Agente desire to express their thanks to the Committee for giving them an opportunity of roviewing the evidence.

The Terms of Reference indicate the conditions of tenure, the salaries and pensions, and the office arrangements, and with a view to deciding whether changes are desirable, the Committee has conducted a "general survey." The survey has, in fact, included a detailed examination of the way in which the work is done and the reception of various allegations and charges against the Crown Agents. The efficiency of the office is a much more important consideration than any question of internal organisation, and if there was any doubt on the subject a full inquiry was clearly desirable,

The Committee has taken the opinions of the Crown Agents individually on certain constitutional questions, and as those opinions appear to be on somewhat different lines, it may be observed that the Crown Agents have never had occasion to discuss these ques- tions together, nor do they conceive that it has been their business to do so. The Secretary of State, when he created the office must, from their point of view, be taken to know what was meant; it is undoubtedly for him to say, and the Crown Agents have no official opinion on the subject. But, briefly, it may be observed that the character of the office may be con- sidered from two points of view. Constitutionally, the origin has to be looked at, and in this sense the office

may be considered Government Office, although

Civil Service &

Office, and to exercise powers delegated by the Crown. Practically the Crown Agents have been left to take premises, appoint their staff, and make all arrangements them. selves, and in this sense the office has been conducted as a commercial house.

not

E

The Crown Agents consider themselves to be con- cerned mostly with that part of the evidence which relates to the way in which they do their work as agents for the Crown Colonies, and which, read by itself, might leave the Committee under a wrong impression. They accordingly submit the following observations on the criticisms directed against them :- Sir F. Swettenham's evidence contains two entirely different classes of criticism. The first arises from what may be termed the proper duties of the Crown Agents for the Colonies, comprising finance and the purchase of stores and materials. It is this class of work on which their staff are almost wholly occupied, and which, therefore, comes within the scope of an inquiry into the circumstances of that staff. The second class of criticism is due to matters with which the Crown Agents are only connected owing to the Secretary of State having referred to them for advice. With this the staff are little if at all concerned, as it represents the personal views of the Crown Agents. Criticism of such matters, which are outside their strict position as agents, really amounts in many cases to criticism of the Secretary of State rather than of the Crown Agents. Thus Sir F. A. Swettenham sets out his objections to the system of carrying out work in the Colonies under the advice and control of consulting engineers. But this system is in each case applied, not by the Crown Agents, but by the Secretary of State. He particularly referred to the Singapore rail- way, with regard to which the Crown Agents submitted their views to the Secretary of State because they were asked to do so. The Crown Agents advised the Secretary of State, that as the Colony had no experience of railway construction and no railway engineer in their service, the railway would be best built by an engineer nominated by, and acting under the technical instructions of, the firm who were consulting engineers for the Federated Malay States and Ceylon railways. The Secretary of State decided that this should be done. The results were not wholly satisfactory, but this was not due to the system adopted, but to causes which have been skotched in the verbal evidence, the principal one being the total absence on the part of the Government of that co-operation without which no system could be success. The specific references in the evidence are hardly a correct representation of the facts. Sir F. A. Swettenham speaks of a bridge having tumbled down

and an embankment given way as matters which led to the resident engineer leaving the Colony. The Crown Agents cannot trace that information as to an embankment reached this country, and the only bridge failure was that of a 10 foot culvert. This fell a year

after the line had been opened for traffic and the engineer had left the Colony, owing to its foundations being scoured out by floods. The accident would have been prevented by ordinary watchfulness on the part of the Colony's officers who were in charge of the railway.

Sir F. Swettenham says the line "took more than twice as long to construct as it ought to have done." It was never supposed that in the most favourable circumstances it would take less than 18 months, and two years was thought not improbable. It actually took two years and a half, must of the delay being due to time taken (unavoidably, no doubt) by the Colonial Government in acquiring the land. He adds, "it cost about twice the original estimate." As a matter of fact, the total excess was only 20 per cent. This, however, included an excess in the cost of land, which was altogether in the hands of the Government; and the cost of certain extras ordered by the Govern- ment. Deducting these, the excess for which the Resident Engineer was responsible was less than 14 per cent., a very different matter from "about twice the cstimate." As a matter of comparison, it is interest- ing to note that at the same time as Sir F. Swettenham and the local press were exercised over this excess on a comparatively small sum ($1,490,626 was the esti- mate) railways under construction in the Federated Malay States, independently of the Crown Agents, estimated to cost $11,000,000, had already cost $18,000,000, and were still unfinished, but this did not, so far as the Crown Agents know, raise a storm of local indignation.

He

The above observations are made, as the evidence given was apparently received as relevant to the inquiry, but all these questions of system and policy aru considered and settled by the Secretary of State, who may or may not consult the Crown Agents, and it is difficult to see how they relate to the organisation of the office, or the work of the staff, or the functions of the Crown Agents, in carrying out the orders given to them. As regards the ordinary duties of the office, Sir F. A. Swettenham thought that "the quality of the goods supplied is always very good, and the prices, I think, are practically as low as you can get." suggested, however, that open tenders, without any list, should be invited. We do not think that many people of experience in such matters would support him in this. The War Office and Admiralty keep lists of approved firms as the Crown Agents do. He further suggested that, failing this, the list should be enlarged, and that at present they are too limited. The Crown Agents have on their lists of firms invited to tender some 3,000 names and about, 1,000 makers of particular articles. Any firm presenting proper credentials is placed on the list, and the statements (873-874) that this is not the case, and that there is some understanding or condition with firms that are accepted are entirely wrong. Any firm that is refused can appeal to the Secretary of State; and this has occasionally been done, but the Crown Agents have, it is believed, always satisfied the Secretary of State that they had good grounds for their decision. Sir F. A. Swettenham goes on to say (883) that in "big things like locomotives and rails," the Crown Agents invite too few firms, to tender. Unfortunately, there are in the United Kingdom only a limited number of firms who can be relied on to construct main line engines well and quickly. All these are on the list, and all tendered for engines for the Malay States railways on several occasions during the years to which Sir F. Swettenham refers. Sir F. Swettenham does not say what steps he would have us take to increase the number. As to rails, it has for some time past been our regular practice to advertise important contracts, so that it is open to anyone to tender who pleases.

13

The Crown Agents do not understand the statement (970) that their methods are unbusinesslike because they do not "go straight to the shop." The practice is to go straight to the manufacturer. Sir F. Swetten-

Accounts and Estimates and Loans.

1 Senior Clerk

1 Junior Clerk

} Junior Clerk

4 Staff Clerks

720 0

500 0

180 0

1,400 0

500 0

470 0

380 C

365 0

1,715 0

5 Second Class Clerks (Higher Grade) -

335 0

350 0

350 0

335 0

350 0

1,720 0

5 Second Class Clerks

228

0

132 0

117 0

83 0

75 10.

635 10

5,470 10

£16,247 10

17 17

19

PUBLIC RECORD OFFICE

Reference:-

C.O.885

19 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

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