CO882-(6-8) — Page 460

PUBLIC

RECORD

OFFICE

Reference :-

wwwimmi C.O. 882

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PUBLIC RECORD OFFICE, LONDON

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

D

E

2.

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I understand the Resident-General to be in favour of making the loan. He would prefer that the Colony should stand in with the Federated Malay States and lend half the amount, but, if that be not, feasible, I gather that he would give from Federated Malay States' sources the whole required sum.

3. The proposal is one that in its present form is not, in my opinion, to be recommended. The subject is, however, a matter of grave import to the Colony and the Federated Malay States as affecting the welfare and condition of Singapore, which is not alone the principal port of the Colony, but will be, when railway com- munication through the Johore territory has been completed, the main outlet for the trade of the Federated Malay States. I have been surprised of late to find how many influential and thinking persons here, unofficial rather than official, would welcome such interference by Government in the affairs of the Tanjong Pagar Dock Company as would ensure that the well-being of the port and the convenience of the public would not be subordinated to the interests of the shareholders.

4. I do not propose to deal further with the question, but merely to submit the application and report to you, and to place the papers before Sir John Anderson on his arrival with a view to his dealing with it in the manner that its importance deserves.

5. In this connection I take the opportunity of forwarding, for your informa- tion, a copy of the report of the last general meeting of the shareholders of the Tanjong Pagar Dock Company, and would invite your attention to the remarks of Mr. John Anderson, who, previous to the meeting, resigned his seat on the Board of Directors with a view to being in a position to comment on the proceedings of the London Consulting Committee and his differences of opinion with that body.

6. I do not share to the full the views held by Mr. Anderson, but there is much force, in my opinion, in what he alleges as to the unsuitability of control of the operations of a Company such as the Tanjong Pagar Dock Company by a Committee 7,000 miles away, and composed for the most part of gentlemen who have not been in the port or its neighbourhood for years. It was with a view to counteract in some degree this possibly harmful influence that I advocated the addition to the Board of Directors of two representatives of the Government, a proposal recently approved by you, but to which effect has not yet been given. The inclusion of Government members in the Board is generally, I think I might say universally, approved, but there are those who think that the Board even thus constituted will not be able to hold its own against the Consulting Committee.

7. enclose also a copy of Mr. Rumney Nicholson's report on the works neces- sary, in his opinion, to bring the premises of the Company up to date and to render them sufficiently equipped for dealing with the requirements of shipping frequenting this port, the withholding of which from the shareholders led to Mr. Anderson's resignation. The works are so extensive and the cost of carrying them out is so great that it is quite reasonable that the opinion of an expert of high standing should be invited; it is proper that the Consulting Committee should desire that when placing this report in the hands of the shareholders the directors should, if possible, show how the necessary capital was to be obtained; but the reference to the condition that a dividend of 12 per cent. was not to be endangered appears to justify those who are not, for one reason or other, supporters of the Consulting Committee, in considering the action of the Committee as influenced by regard for dividends rather than by prudence in the matter of expenditure.

I have, &c.,

SIR,

Enclosure A in No. 5.

(Confidential. 15/04.)

W. T. TAYLOR.

•

Resident-General's Office, Selangor,

Malay Peninsula, March 2, 1904. Federated Malay States' loan to Tanjong Pagar Dock Company. I HAVE the honour to submit, without its enclosures, copy of a letter addressed

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to me by the Chairman of the Tanjong Pagar Dock Company, Limited, Singapore, at the request of the Board of Directors, dated at Singapore, 8th February ultimo, but not received here until the 20th of that month.

2. The object of the communication is a loan from the Government of the Federated Malay States of a sum of ten million dollars at a rate of interest of 3 per cent. per annum, secured by debenture mortgage over the property, to enable the Company to undertake certain large and extensive works with a view to bring the dock facilities for handling ships' cargo and coal up to present standard of require ments, and also to pay off existing debentures aggregating $1,615,500, and falling due, June, 1904 ($1,050,000), October, 1905 ($140,500), October, 1906 ($175,000), April, 1908 ($250,000).

3. In view of the important position of the port of Singapore commercially and politically, and the growing competition from the Dutch in Netherlands India, and the Americans in the Philippines, the matter presents itself to me as one of almost Imperial importance and therefore worthy of serious consideration.

4. For reasons which will be obvious I propose to address Your Excellency further on this subject in a letter marked secret.

His Excellency

SIR,

The Acting High Commissioner,

Federated Malay States, Singapore.

I have, &c.,

W. H. TREACHER,

Resident-General,

Federated Malay States.

Singapore, February 8, 1904.

I AM desired by the Board of Directors of the Tanjong Pagar Dock Company, Limited, of Singapore, to address you on the question of the Federated Malay States lending money to this Company.

2. I enclose, in confidence, a report by the Managing Director of the Tanjong Pagar Dock Company, Limited, Mr. J. Rumney Nicholson, dated 9th January, 1904, in which he sets forth a number of large and extensive works that he recommends should be decided on and put in hand as necessary to bring the facilities of the Company for handling ships' cargo and coal up to a condition such as it is required to meet the growing necessities of the port.

3. You will observe that Mr. Nicholson's estimate of the funds necessary to carry out the works recommended by him, vide paragraph 81, is the somewhat large aggregate of $12,078,153.

4. The expenditure of this money would be spread over a period of at least about (10) ten years.

5. The outlay necessary for the first four years would be heavier than that in subsequent years this because of the cost of initial plant for effecting the various works.

6. I enclose a statement of the Company's accounts for the half-year ended 30th June, 1903. From this you will see that the paid-up share capital of the Company is $3,700,000; while the Company has also raised loans aggregating $1,615,500 under various issues of debenture mortgage.

7. The very important works that are now recommended by the Managing Director (who is a member of the "Institute of Civil Engineers") appear to the directors to be necessary for the improvement and welfare of Singapore as a port,