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PUBLIC RECORD OFFICE

Reference :-

IPE CO. 882

8

PUBLIC RECORD OFFICE, LONDON

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

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5. On the afternoon of the 30th ultimo the Finance Committee accepted the figures and statements which had been referred to them, and by a majority, agreed to recommend that extra taxation to yield Rs. 300,000 for the remainder of the year, should be imposed.

6. The Executive Council met on the morning of the 1st current, and the maasures for additional taxation and to amend the Reafforestation Ordinance, which formed enclosures to my despatch, No. 423,* were discussed. The Council unani- mously advised the adoption and introduction of the former, and, at the suggestion of Mr. Leclézio, the latter was amended by the Procureur-General in form, but not in principle. I append a copy of the latter as introduced and passed later on in the day by the Council of Government.

Ordinance No. 24 of 1904.†

7. In that assembly a somewhat heated debate took place on the first motion of the Colonial Secretary for a resolution pledging the Council to assist and co-operate with the Government in the reduction of general expenditure and of the Civil Service. Several members disclaimed any responsibility in the past, and declared that they had always strenuously advocated economy in the former, and had been always opposed to the growth of the latter.

8. The resolution, however, passed unanimously, and when the draft Ordinance to provide additional ways and means was brought up, it became evident that not only would the principle be accepted, but that the measure would be allowed to pass without amendment, and to become operative immediately.

9. Every opportunity was given to members to propose other forms of taxation, but no suggestions were offered. One or two members, however, expressed themselves as doubtful whether the yield during the remainder of the year would be as large as was estimated. In this view it is quite possible that results may prove their forecast to be correct, but I hope that the object of the measure may eventually be satisfactorily attained, and in the meantime that, with economy in expenditure, the revenue collected between now and the 30th of June next may, with the assistance to be obtained under the loan, prove sufficient for all ordinary requirements.

10. And in this connection I may observe that during the past few days a large amount of duties of customs has been paid in anticipation of increased taxa- tion, and whilst every precaution was taken not to expose the scheme before it was submitted to the Legislature, it was impossible to prevent the mercantile community from forming their own conclusions. The additional receipts from the above trans- action will, I hope, moreover, set off, in part, any resulting shrinkage in the customs returns during the next two or three months, whilst in the succeeding financial years it may be anticipated that the results will prove sufficient for the attainment of the object in view.

11. The Customs and Excise Ordinance having passed, the measure to provide for the past application of the sums realised on the 4 per cent. surcharge for re- afforestation purposes was introduced and passed, and on the 2nd current I had the honour of informing you by telegram of the enactment of the measure to provide additional ways and means and of the passing of the resolution already mentioned above. I also stated that I proposed to introduce and pass the Loan Ordinance with a suspending clause.

12. I trust that the course which I have taken, and the results therefrom may meet with your approval, and I cannot refrain from giving expression to a sense of relief which has thereby been created. The action which would have been necessary had the Council refused to vote extra taxation might, at the present time, and under existing conditions, have led to much discontent and possibly tomore serious conse- quences, and whilst I was fully prepared to carry it into effect, the necessary docu- ments being in readiness, I hope that I have read your several communications aright, and that the avoidance of a constitutional crisis at the moment is in accord- ance with your views and wishes.

13. As I have already had occasion to observe, the system of conducting the finances of the Government is in my opinion far from satisfactory, and has, I believe, led in a large measure to the present difficulties. I have endeavoured to prevent a continuance of such irregularities as have been brought to my notice, and I, ere long,

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• No. 233.

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hope to be in a position to submit to you a general modification of the system, with amending regulations, which will bring it into conformity with accepted principles, and with the methods of business obtaining in other Colonies.

I have, &c.,

CAVENDISH BOYLE. P.S.-I also transmit a copy of the resolution* passed by the Council pledging their co-operation in the measures to be taken to reduce expenditure and the exces- sive Civil Service of the Colony.

December 5, 1904.

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SIR,

(No. 434.)

No. 236.

GOVERNOR SIR C. BOYLE to MR. LYTTELTON.

(Received January 9, 1905.)

[Acknowledged by No. 237.]

C. B.

Government House, Mauritius, December 7, 1904. WITH reference to your despatch, No. 255, of the 12th October last† and previous correspondence on the subject of the construction of the Black River Railway, and of the raising of a loan of £40,000 to meet the cost thereof, I have the honour to transmit to you, herewith, a copy of a Minute I addressed to the Council of Government on the 3rd of November, with regard to the expenditure on this line.

You will notice from my Minute and annexures that the total expenditure on the line on the 22nd of September amounted to Rs. 606,580.94, and that a further sum of Rs. 12,011.72 was required to carry on the works until the end of October, making a total excess expenditure of Rs. 18,592 over the amount of the loan.

2.

3. It will also be seen from the report of the General Manager of Railways, annexed to my Minute, that a further sum of Rs. 269,315 is required to complete the line and to supply the necessary rolling stock.

4. As no further funds were available, I was constrained to direct that the construction works should cease on the 31st of October, and to ask the Council for covering authority for the excess of Rs. 18,592.66, which, as I explained above, has been incurred. The Council voted this further amount on the 22nd November.

5. In the meantime the General Manager of Railways has taken over the line, and will continue to carry on goods traffic and a limited passenger traffic. The completion of the line must, however, as I stated in my Minute, stand over until means can be provided to meet the required expenditure.

6. The story of this line is a mournful one. It was estimated to cost, when your predecessor sanctioned the work, a sum of Rs. 545,027 at the date when I was compelled to close down the works a sum of Rs. 618,592 had been expended. Rs. 86,215 are required, in the opinion of the General Manager, to complete the absolutely necessary work of construction, and Rs. 21,000 for materials for the sidings which are still incomplete. Communication by telephone or telegraph must be extended to all the Stations at an estimated cost of Rs. 3,568. There are no approach roads to the stations. Rs. 159,000 are required for rolling stock. No carriages nor wagons have been purchased for the line."

7. It is a matter which must of necessity impress itself upon my constant attention, but for the present the question of the completion of the line must be deferred.

8. I am enquiring into the work done by this railway during the present crop season, and I shall address you further on the subject.

I have, &c.,

CAVENDISH BOYLE.

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† 34521: not pricted.

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