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PUBLIC RECORD OFFICE

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8 PUBLIC RECORD OFFICE, LONDON

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55 millions showed that they were not going to inflict any hardship upon the shipping or the port and that if it was found necessary they would consent to make a very small charge now for any money that had been spent in the acquisition. It was impossible for the Government to give such an assurance, but they must have confidence in the Government and not run away with the idea that they were going to help anybody to ruin the trade of this port. He was glad that his hon. friends had not brought forward any argument which might savour of their working on behalf of the body of shareholders against the general policy. There was no doubt- it was human nature that a great deal of the feeling they had must be prompted by the fear that they might suffer in pocket by the Government taking away their property from them. Ile was sure it was the intention of the Government to deal in all fairness with the Company and that the arbitration would be on a perfectly fair and clear basis. Any money that had been spent on improvements on the Company's premises during the last 20 or 30 years—if value could be shown for such improvements and if there had been no squandering of money or foolish expendi- ture--shareholders would get the full benefit of any money so spent; and he would like to say that he believed the shareholders of the Company would be no sufferers by the transfer to the Government of their property. (Applause.)

PENANG'S APPROVAL.

Mr. Turner said the acquisition of the Tanjong Pagar Dock Company's property by the Government of the Straits Settlements, for which that Bill provided would, he was convinced, serve the best interests of the Colony. Not only would this be so as regards Singapore but for Penang also the measure was highly desirable. The Southern Settlement was the natural outlet or inlet for a much larger share of the trade of the Peninsula than it was generally credited with being, but facilities for dealing with that trade were urgently needed. The Tanjong Pagar Dock Company's property at the mouth of the Prye River was the most convenient starting point, in fact, he might almost say was the only starting point, from which to carry out works to give the required facilities. As it was to Government they must look for carrying out works of the magnitude that these should ultimately be of, it was necessary that the property be vested in Government. The more closely one looked at the proposed measure in all its bearings the more obvious its advantages to the Colony became. (Applause.)

CHINESE OPINION.

Mr. Tan Jiak Kim remarked that as his silence might be misunderstood he desired to say just a few words. He was sorry he could not agree with the remark made by his hon. friend that the Dock Company was popular among the Chinese. For the last few years the Chinese shipping companies had been trying to avoid sending their steamers to Tanjong Pagar because of the enormous charges and their cargoes to the wharves because of the heavy charges there. He had made very careful inquiries and he could assure His Excellency that the Chinese traders were unanimous in supporting the Government in nequiring this Company. With regard to other matters of discussion, the 5 per cent. might be too heavy but when the Government ran this Company it would be for the good of the general interests of the Colony and not of the share- holders. Ile aupported the Bill. (Applause.)

COLONIAL SECRETARY.

The Colonial Secretary said:-Sir, in rising to make a brief reply to some of the arguments which have been used in opposition to this Bill I have the unusual good fortune to have had the greater part of them replied to by the honourable members who have spoken before me, especially the hon. and learned member opposite, who has anticipated me by much that he has said and by the quotations he has used. "I thank him for it. But before making any remarks, I should like to take the opportunity of congratulating the hon. member who has just joined this Council for the self-restrained and temperate manner in which he has performed his gladiatorial duties. As has been said, the Secretary of State's despatch must be read, not so much as an indictment of the policy of the Company as a Compauy, but as a plain call on us to decide between manage- ment of the most important of our mercantile and shipping interests in the interests of the shareholders or in order to promote the best interests of the Colony. It is rather a comparative view of the two methods, ie., the domination of the dividend or control by the Colony. The published correspondence shows that, apart from failure in the past to satisfy our requirements, there was good reason to anticipate indefinite delay and uncertainty in the future in meeting our needs by executing the improvements necessary; improvements not to be measured by the amounts spent on them as compared with the amounts distributed in dividends, but measured by the clamant wants of the Colony. Now, connected with the question of delay there is the question of the difficulty of raising the necessary funds. At a meeting of the Board the other day it was stated that the necessary arrangements had been practically made, to-day the hon. member at the foot of the table has said that the arrangements had been completed; omitting the doubtful word "practically." Now reference to par. 10 of the despatch will show that, at first, the representatives of the Company said that without Government assistance they could not obtain the necessary capital on terms which they would be able to accept. Of course this is only their original idea; for on reference to par. 14 of their letter of the 14th October they express the hope that among their larger British and foreign customers they will be able to get on reasonable enough terms money to the extent to which it will be necessary to borrow it. Now we should like to know if the customers referred to are the same people as are referred to in par. 16 of the letter as lenders actuated only by profit considerations; and again if they are identical with the customers mentioned in par. 6 as having strong individual interests opposed to high wharf charges. Well, these Jekyll and Hyde customers, appearing at one time in the guise of being opposed to high wharf charges, and at another as actuated only by profit considerations, would not be very helpful customers. One thing is certain, namely, that they

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would not give their aid for nothing, and the consideration would take the shape either of higher dividends and possibly higher dock charges, or a greater amount of control. And when we see that this would have included an increase of foreign control, this would alone have been an objection to obtaining financial aid in the quarter indicated, if it had been forthcoming. This great measure which we are considering was not decided on without great efforts being made to settle the difficulty by making the Company efficient by means of Government pecuniary assistance, while at the same time securing to the public sufficient amount of control. But the reply of the Company to the Government overtures was described by the Secretary of State as falling so far short of securing the objects aimed at, that they hardly afford the basis for further negotiations. Under these circumstances there was only one course open, and that was to compel the Colony to take its destinies in its own hands; and in par. 20 of his despatch the Secretary of State sums up the grounds, local and imperial, why this course stands in need of no justification. And it will require little argument to convince the public that when a monopoly which has failed in the past to satisfy our needs and whose power to meet them in future is so doubtful, a monopoly controlled from thousands of miles away in the interests of those with whom the dividend is the paramount consideration; when this monopoly is succeeded by a trust belonging to the Colony, managed on the spot by our best business men on the ordinary sound principles of sound commercial administration; an administration stimulated by public criticism and strengthened by the whole credit of the Colony, it will require, I repeat, little argument to convince the public that the change is one of unspeakable advantage both locally and imperially, and will compel those responsible for its management to make English trade their first consideration. It is a change which will re us free to act boldly and promptly and will leave us untramelled by the deliberations of disfi... dividers of dividends and by the uncertainty of having sufficient funds with which to effect the works necessary to place and maintain our commerce in the high position which it deserves. (Applause.)

COLONIAL ENGINEER EXPLAINS.

The Colonial Engineer, replying to some of Hon. Mr. Shelford's remarks, said, with reference to the quarantine station that the hon. member forgot the fact that the Government had spent a very large sum of money upon permanent works which had been carried out, about £26,000 in 18 months, and some credit was due to the Department for this. The question of the Singapore River was a very large one. A report would, however, shortly go in to the Government with certain proposals for improvements. The "Mudlark" had been working with considerable effect on the river,

SPEECH BY THE GOVERNOR.

His Excellency: Gentlemen, I do not propose to detain you long at this late hour of our deliberations. I would like to associate myself with what has been said with regard to the almirable speech by which we have been favoured to-day by our youngest member, I think he has shown that he is a worthy son of a worthy sire-a chip of the old block. (Hear, hear.) We are very glad indeed to welcome him to this Board, where no doubt he will prove as valuable during his time as his father did. The discussion has travelled over a good many points to-day, and if I were to go over them all I daresay I should keep you until dinner time. I do not intend to inflict that upon you. I think the hon. and learned member opposite (Mr. Napier) gave very good reasons of public policy which justify Government in bringing this measure before you. It has been said that about June last when I wrote I spoke of expropriation as impracticable. I confess I did so. I should also say at the same time that the idea of entrusting the management of this harbour, of the Tanjong Pagar Dock undertaking, to such a Board as the Secretary of State has suggested had not then occurred to me. If it had I should think I should probably not have spoken so strongly as I did; and even then I did not satisfy the Secretary of State. I would also like to point out that equally with the Secretary of State I held and do hold most strongly that it is essential in the interests of the port that the port themselves that is to say, the inhabitants of the port should control the policy of the port. And as the means which I have suggested for securing that control did not meet with approval either from the Secretary of State or the Company I am honestly prepared to adopt the alternative that has been put before us by the Secretary of State. When the Company came into conference with the Secretary of State they said once for all "We will have no control unless the 12 per cent. is guaranteed." What did the late Chairman say at the meeting to which we have had No many references to-day? He said that when the scheme of Mr. Nicholson which has been approved both by the Government and by the Company was before the Committee they refused to consider it unless accompanied by a scheme of finance showing the 12 per cent, dividend continued. What did the late Chairman say? He said it was very unlikely that this 12 per cent, could be maintained if these works were carried out. Since then curiously enough--when the late Chairman prophesied in that speech-Mr. Nicholson's scheme has had 25 per cent. added on to it and if 12 per cent. had to be maintained-as the Chairman said, they could do it only with the utmost difficulty with a scheme of 10 or 12 millions. Now that it is increased to 15 millions, we see that if the Company have to go and borrow money at 6 per cent, or whatever per cent. they hope to raise it at they could not have done so except hy waiting on Providence in the shape of an increase of traffic. They could only have done so by carrying out the works at such a rate of progress as would take a number of years to do. Then a large part of this work is absolutely unremunerative. The replacing of the wharf which is one of the most important wharves, would be a deadweight. The capital charge should come out of the dividend or out of the increase of the traffic or of the rates. It has been said "Bring no charge against the management." Certainly I have never brought any charge against the management. the contrary I have said over and over again that the management was all that could be desired. It has been intelligent, directed by men who took a very great interest in the port and are men who represent to a very large extent the principal customers of the Company. Our hon. friend, in answering the speech of the late Chairman, did not answer the specific charge brought

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