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PUBLIC RECORD OFFICE

Reference :--

FTTC.O. 882

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PUBLIC RECORD OFFICE, LONDON

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

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5. The Court did not state in its award what sum had been allowed, and the most important indication of its views is given on page 764, as follows:-

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Mr. Moulton: I am obliged to notice another point, namely, the cost of re-investment in this claim of one per cent. That is a matter for the Tribunal. I do not think that we quarrel with the one per cent., but with regard to the recoupment for loss of interest, it is quite obvious that the wit- nesses who spoke of that were quite at sea as to the provisions of the Act. The interest, of course, goes on until they actually get paid.

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Sir Edward Fry: But the difficulty with regard to that seems to be this --that the Company have power to pay off at any time within six months of the appointed day. Therefore, the shareholder will never know when he will get his money until he gets it, and, therefore, it seems necessary to allow some fair time after the receipt of the money. You see the interest at the previous rate only runs up to the time of payment. I think I am right.

"Mr. Moulton: Up to the time of payment. I think an allowance should be made. We suggest a month.

Sir Edward Fry: That is surely not enough-the Court of Chancery, you recollect, always did, and, I suppose, does still give six months if mort- gage is paid off without notice. If there has been a fixed day for payment, I understand you might say very fairly that a man could make arrangements beforehand, but here he does not know the date of payment.

"Mr. Moulton: I had not thought of the point before: I fully appre- ciate what you say.

One knows that there is an equal amount of water stock going to be issued to produce the value which can be made over, so that the probability is that in the great majority of cases it would be a mere transfer.

'Sir Edward Fry: That may be, but we have to consider the money received at an uncertain date by the shareholder.

"Mr. Moulton: Of course that is for the Tribunal. I should submit that, considering the fact that there will be this very large increase of high-class stock seeking buyers at the same time that there is this large amount of money seeking investment, those two items.

Sir Edward Fry: But I suppose the water stock must be issued some time before the payment off. However, that is all a matter of uncertainty.

"Mr. Moulton: It is for you to decide, I am perfectly willing to take it at 11-one per cent. for the first and a half for the second. It is over what Mr. Haward thinks, but it is for the Tribunal to decide.

Sir Edward Fry: Very well."

6. The above referred to London Water Companies-admittedly very high class sterling securities, the compensation for which was being fixed at almost equivalent to Consols. The total sum, although large, was not to be mentioned in London by the side of what the Tanjong Pagar compensation will be in Singapore: I mean with reference to the facilities for re-investing in equivalent securities.

7. There is besides one new feature here. The Colony will add its strength to that of Tanjong Pagar undertaking and so the inscribed stock will carry a much lower rate of interest than any existing investment in Singapore, where first-class mortgages and debentures bear, say, 7 per cent., and municipal debentures, say,

per cent.

Even the Tanjong Pagar debentures will, I suppose, be paid off-these bear 5 per cent. (6 per cent. for a small proportion).

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8. I have no doubt it will be contended for the Company that the sum thrown on the market will be so large that the loss of interest will be very serious, because equivalent securities will not be obtainable, and that the price of those obtainable will be very high, that, differing from London, the shareholders cannot be expected to take inscribed stock at a low rate of interest.

9. Even if a shareholder did intend eventually to put his money into Colonial stock, I see no inducement for his doing so direct from Government. He will say :- Why should I not wait and get money which will include whatever the Court has added for loss of interest owing to uncertainty of date of payment and for cost of re- investment, and then buy the Colonial stock which will always be obtainable, and perhaps at a discount?

10. One and a half per cent. for loss of interest and cost of re-investment will amount to a substantial sum, and if the Company get the Court to allow more

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because the interest they have enjoyed has always greatly exceeded that under dis- cussion in London, and because similar investments cannot be obtained here, matters would be more serious.

11. The ordinary period for penalty interest on mortgages in Singapore is three months, if the mortgagor wishes to pay off without giving notice: six months would, it appears, be the shortest period which could be applied in this case where such a large sum is being set free. The fact that eventually much of it may be paid in or transferred to London will not avail in the arbitration proceedings.

12. What I, therefore, wish to suggest for your consideration is the maturing of a scheme by which we can avoid, if possible, the payment of any sums for the items under discussion. At present I can only further suggest that Government should undertake to give six months' notice of payment of cash and three months of the issue of stock.

S. TOMLINSON, M.Inst.C.E.

March 25, 1905.

From S. Tomlinson, M.Inst.C.E.,

1, Raffles Quay, Singape,

March 30, 1905.

(Minute No. 15.)

EXPROPRIATION OF TANJONG PAGAR DOCK COMPANY, LIMITED. Proceedings of the Court of Arbitration under the Metropolis Water Act, 1902. Kent Company's Case.

COUNSEL:

I return the proceedings in this case.

2. The only point in serious dispute was the multiplier; and the discussion on this is very important in our case.

3. The more I consider the matter of payment in our case, the more I am impressed with its seriousness: and I am satisfied that it is so serious as to justify quite exceptional consideration, and quite exceptional measures to prevent a heavy payment for "loss of interest pending re-investment and for cost of re-investing,"

4. I am aware that the question of exchange enters into the matter, and on this I cannot say anything; except, I suppose, the more money is brought into the Colony from England, the greater will be the tendency of the dollar to rise: and if the result of the operation be an eventual sending out of the Colony of a large sum of money, there will be a tendency for the dollar to fall. It seems to me, there- fore, that what I have ventured to suggest in a previous minute gradual payment-- giving an opportunity for the money to be gradually absorbed in local securities, is worth consideration. I do not think there is any doubt that the present is, for Singapore, a good time for money to find profitable employment-always remem- bering that the market is a comparatively small one.

S. TOMLINSON, M.Inst.C.E.

From S. Tomlinson, M.I.C.E.,

1, Raffles Quay, Singapore,

March 31, 1905.

(Minute No. 16.)

(F.P. No. 5.)

EXPROPRIATION OF TANJONG PAGAR DOCK COMPANY, LIMITED.

On the Allowance for Loss of Interest pending Re-investment and for the Cost of Re-investment. COUNSEL:

This matter was also discussed at our interview with His Excellency the Governor on the 27th, and I am impressed with the importance of this point.

2. The difficulty we have to face is the argument that it will not be possible to re-invest in Singapore in similar securities because they do not exist in sufficient amount, and that differing from a place like London where a great variety of securities is always on the market and no great delay need occur in re-investing-here the delay may be considerable and prices of eligible