PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
Preamble.
104
going concern. If the life of a tug or machine was, say, ten years, and they wrote the whole amount off in three, it made no difference in the long run in the amount annually distributable. If they had three tugs, the life of which was, say, ten years, it was exactly the same thing whether they wrote off 10 per cent. a year on each, or 30 per cent, on one and nothing on the two, which, presumably, were already fully written off. I also reminded them that the wharves and buildings at Prye Dock were in an absolutely ruinous condition, and that the whole establishment required immediate renewal.
7. They further pointed out that they had a large amount of undeveloped land entered in their capital account at a very low value, and they said that it alone was worth three million dollars.
I replied that their land was presumably entered at cost; before they could realize it they would have to spend very large sums on filling and laying it out and that its realization must be a very slow process, as the market was limited, and that, further, they must remember that when the reclamation proposed by the Government was completed, we should have eighty acres of the most favourably situated land in the town to dispose of in competition with them. That was valued at four dollars a foot, but it would be many years before we could look to dispose of the whole of it at that price or anything approaching it.
8. Mr. Shelford then said that it was very unfair for the Government to saddle the proposed Board with the costs of arbitration, that there had been no call for the Government interference in the matter and that Government should pay.
I replied that I could not agree with him. Tanjong Pagar was charged with a public trust which it had practically declared itself unable to fulfil unless the Government assisted it. This he demurred to, but I reminded him that the London Committee had stated at the interview at the Colonial Office, that if the Government did not assist them it would possibly take them thirty years to provide the facilities which they were advised were necessary to bring them up to date, and to provide for the future. It was impossible for the Government to allow the port to be hampered by such proceedings, and my statement was, I believed, quite justified.
9. I again reminded them that while the Government did not desire to make any profit out of the transfer, it was not prepared to accept a loss, and that if an excessive price had to be paid it would have to be met by increased charges for the services, and I asked them whether they had formed any opinion as to what would be a fair price. Mr. Shelford, who may be presumed to speak for Mr. Gulland, the Chairman of the London Committee, whose junior partner he is, replied that he had not consulted all his fellow directors, but that he considered that between six and seven hundred dollars a share was the least they could accept. That, I said, was an impossible figure, and I concluded by asking them to submit my offer to their colleagues.
10. The impression left on my mind by the interview was that the Directors entertained a very exaggerated idea of the value of their business, and that they had not fully grasped the conditions upon which it is proposed to expropriate the Company, and their bearing on the price, and that in any case they are tied by the necessity of referring everything to London.
11. In the meantime the shares of the Company are quoted at 375 dollars each, and transactions have taken place at 380, but they are neither numerous nor important.
Enclosure in No. 48.
I have, &c.,
JOHN ANDERSON.
A BIL intituled an Ordinance to provide for the acquisition by the Government of the Straits Settlements of the undertaking known as the Tanjong Pagar Dock Company Limited and for the management of the same.
Whereas it is expedient that the property and assets of the Tanjong Pagar Dock Company Limited should be vested in the Government of this Colony and that provision should be made for the management of the same:
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It is hereby enacted by the Governor of the Straits Settlements with the advice
and consent of the Legislative Council thereof as follows:—
1. This Ordinance may be cited as "The Tanjong Pagar Dock Ordinance 1905." Short title.
2. In this Ordinance the following expressions shall have the meanings Defini-
respectively assigned to them where not inconsistent with the context :-
The Company" means the Tanjong Pagar Dock Company Limited. "The Board" means the Board constituted by the provisions of this Ordin-
ance.
"The Court" means the Court of Arbitration constituted by the provisions of
this Ordinance.
The expression "undertaking" includes all such property real and personal including cash balances reserve funds investments and all other interests and rights in to and out of the property real and personal and obligations and things in action as may be in the possession of the Company or belonging to them immediately before the date referred to in the next section and all books accounts and documents relating thereto; but subject to all debts liabilities and obligations of the Company by this Ordinance transferred to the Board or the Government.
tions.
take over.
3. It shall be lawful for the Governor by writing under his hand addressed to Notice to the Managing Director of the Company to give notice that it is his intention to take over the property of the Company on a date to be stated in the said writing and from and after such date hereinafter called the appointed date the property and assets of the Company in the Colony shall be vested in the Government.
debts and
4. The Government shall be liable for all debts and obligations lawfully Liability for incurred by the Company at the appointed date.
obligations,
ance of
taking.
5. Until the appointed date the undertaking and business of the Company shall Mainten- be maintained and carried on by the Company as herebefore in the ordinary course of business; but if the Government think that any appointment to any office or under- service of the Company or any contract with respect to any matter connected with the undertaking or any alteration in the rate of salary or wages payable to any officer or servant of the Company made by the Company subsequently to the 10th day of December 1904 was not reasonably necessary in the ordinary course of business of the Company the Government may give notice in writing to the Company to that effect within three months after the appointed date.
Provided always that if the Government give any such notice it shall be referred to the Court to determine whether or not the appointment contract or alteration was reasonably necessary in the ordinary course of business of the Company and the Court shall determine whether and to what extent as between the Government and the Company any liability arising in respect thereto is to be transferred to the Government or is to continue a liability of the Company.
accounts
6. The accounts and balance sheets of the Company up to the appointed date Making shall be made up and audited in like manner and with the like incidents and conse- up of quences as nearly as may be as if this Ordinance had not been passed but as soon Company's as possible after the appointed date and the balance shown on the certified accounts and representing profits available for immediate distribution as dividend and legally balance distributable as such shall be paid over to the Company. In determining the com- sheets. pensation for the transfer of the undertaking of the Company the sum payable to the Company under this section shall not be valued as forming part of the under- taking.
7. For the purpose of enabling the Company to prepare and conduct the case Provisions for arbitration under this Ordinance and to enter into agreements with the Govern- for ment and to discharge the liabilities and generally to carry on the business of the enabling Company and to wind up and dissolve-
Company to carry on
(a). The Company may after the appointed date temporarily retain and use busines
such money offices books accounts and documents and the services of after the such officers and servants as may be agreed upon between the Govern- date.
appointed ment and the Company; and
(b). Any officer and any person authorized in that behalf by the Company shall have free access to all the lands works stores and premises transferred
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