CO882-(6-8) — Page 561

PUBLIC RECORD OFFICE

Reference :-

TREE C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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Enclosure in No. 179.

SUMMARY prepared by Mr. L. M. Woodward showing what action has been taken locally in regard to the expropriation of the Tanjong Pagar Dock Company's undertaking.

1. On the 23rd of December, shortly after it became generally known that the Government had decided to expropriate the property of the Tanjong Pagar Dock Company, Mr. S. Tomlinson, M.I.C.E., was retained to work for the Government.

Mr. Tomlinson was formerly in Bradford, England, as pupil and assistant with Mr. Charles Gott, M.I.C.E., and later with Mr. (now Sir Alexander) Binnie, President of the Institute of Civil Engineers. In 1886 he was selected by Major Tulloch, Royal Engineers, for the appointment of Deputy Water Engineer, Bombay Municipality, and from that post (1886 to 1896) he was appointed Municipal Engineer of Singapore (1896 to 1901), since which date he has been in private practice. Mr. Tomlinson has had large experience in arbitration cases and valua- tion work.

He has been engaged since the 7th March in drawing up a report on the land, wharves, buildings, and docks of the Company, and on the general questions of valuation arising thereon. He has also generally assisted Counsel in advising on the questions likely to arise in the course of the arbitration proceedings.

2. About the middle of March Mr. W. J. Trowell, Inspector of Marine Surveys, was seconded from his ordinary duties and proceeded to prepare a report on the machinery, plant, stock and vessels belonging to the Company. Mr. Trowell is the principal Government Engineer and Shipwright Surveyor. Before coming to the Straits Settlements he was Engineer and Shipwright Surveyor and Examiner of Engineers in the Marine Department of the Board of Trade.

His report will contain comparative tables (now being prepared) showing the cost to the Company and their charges to their customers for labour and material as against local market and home prices.

3. About the middle of May Mr. L. M. Woodward, a member of the Civil Service, was seconded from his duties as Deputy Public Prosecutor, to assist generally in preparing the case for the Government.

4. The following persons have also been retained to assist Messrs. Tomlinson and Trowell in the preparation of their reports, and also to give evidence as experts at the hearing of the arbitration, if it should be found necessary to call them:-

(a) Mr. R. Peirce, M.I.C.E., the Municipal Engineer, Singapore (1901 to

date), and previously Municipal Engineer, Penang (1891 to 1901).

(b) Mr. J. J. Macbean, Managing Director of Howarth Erskine, Limited,

a large engineering firm in Singapore.

(c) Mr. W. E. Finnie, A.M.I. Mech. E., Acting General Manager of Howarth

Erskine, Limited.

(d) Mr. D. R. Cowan, Manager of Hogan and Company, another engineering

firm.

(e) Mr. W. F. C. Asimont, a valuer and estate agent.

(f) Mr. H. L. Coghlan, an auctioneer, estate agent and valuer of some 20

ycars' experience.

(g) Mr. J. W. Van de Stadt, the Manager of the Netherlands Trading Society, has also been retained to give evidence for the Government regarding the facilities existing for investing money locally in mortgages. The Society has very large investments of the kind in Singapore and Penang.

(h) Others who have been approached, and are willing to give evidence on behalf of the Government are:-Mr. A. Kitching, M.I.M.E., M.I.N.A., Superintendent Engineer of the Ocean Steamship Company, Mr. D. Mackie, and Mr. D. Mackie, Junior, Superintendent Engineeis of local steamship owners,

5. Mr. G. A. Derrick and his partner, Mr. H. R. Llewellyn, public accountants and auditors, have also been engaged to do preliminary work in connection with the accounts pending the arrival of the accountant from England, and to assist the accountant after his arrival.

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6. Recently it has been arranged that Mr. Warren, of the firm of Coode, Son, and Matthews, should also co-operate in the examination of the wharves and works. 7. The appointed day having been fixed for the 1st of July next, the stock- taking at Tanjong Pagar commenced on the 17th of May last. It has now been completed. The stocktaking at New Harbour and Prai Dock will be completed by the end of the present month.

8. The proceedings in the arbitration between the London Water Board and the Water Companies have been carefully examined by Mr. Tomlinson and Mr. Woodward, and points have been noted which are likely to arise in this arbitration. The following are some of the principal points which have arisen during the preparation of the case so far, and have occupied the attention of Messrs. Tomlinson, Trowell and Woodward:-

(a) The advisability of arriving at "agreed" accounts and "agreed values of lands as far as possible.

(b) The amount of compensation which may be given for loss of interest pending re-investment and cost of re-investment. This has been discussed at some length by Mr. Tomlinson, and is considered an important point, in view of what occurred in connection with a similar point raised in the arbitration proceedings between the London Water Board and the Water Companies. A scheme was proposed by Mr. Tomlinson, with a view to avoiding, if possible, the payment of any sum under this heading, but Counsel in England, to whom the scheme was submitted for an opinion, held that the proposal was not feasible or advisable.

In connection with this point, and with a view of showing what local invest- ments are available, a summary has been prepared of the mortgages and re-con- veyances registered in Singapore in 1903, 1904 and 1905. A similar one is being prepared in Penang.

Particulars have also been prepared showing share quotations and dividends paid in all local companies of similar character during the last ten years.

(c) The payment of compensation in inscribed stock, e.g., supposing that the Directors elect to receive the whole or any part of the compensation in inscribed stock how is the amount payable of such inscribed stock to be ascertained. Counsel in England have given an opinion on this question.

(d) An analysis has been made of the share account filed in the Registry of the Supreme Court. The analysis gives various particulars as to the number and nationality of the shareholders, the numbers of shares held, &c.

(e) Tables have been prepared showing the existing debenture debt of the Company, the number of holders of each series, the date at which they are re- payable, &c.

(f) A table has been prepared showing the amount of contributory payments made to aiding members under Clause 72 of the old Articles of Association, and Clause 107 of the present Articles from 1871 to 1904. The question whether such payments should be "adjusted" in the accounts, i.e., for the purpose of payment of compensation whether they should be regarded as part of the nett profits divisible among the shareholders, or as part of the working expenses has occupied attention. (g) The relations existing between the Company and the Singapore Slipway and Engineering Company, Limited, at Tajong Rhu have been inquired into. The particulars of the property of the latter Company are to be included in the general reports on the Tanjong Pagar Dock Company's property.

(h) Plans of the Company's property are being prepared, one by the Company, one by Mr. Warren, and one by the Surveyor-General (who is engaged in a survey of the whole Island). The Company are ready to agree upon a plan to be used in the arbitration proceedings, but it is not yet certain which plan will be adopted. (2) A preliminary report on the Prai River Dock Works in Penang has been prepared.

(j). As it appeared that the profits of the Company derived from the repair of vessels, &c., should, for purposes of valuation, be kept distinct from the profits derived from the wharf trade, steps have been taken to get from England an eminent valuer of machinery, trade premises and profits.

(k) A concise history of the Company's undertaking, from its commencement, is being prepared.

(2) The Company's title deeds are being examined. A schedule of their deeds called a "Land Register" has been prepared and printed by the Company, and copies have been distributed to those engaged in working for the Government.