CO882-(8-9) — Page 36

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native.

I. On the value of the Company's land and works with an addition for Alter

goodwill on the lines supported by the Governor, or

II. On the capitalized value of their past earnings.

This alternative claim would be supported by evidence tending to show--

(a) That the past profits would be exceeded;

(b) That everything pointed to the maintainability of the profit-earning

capacity of the undertaking.

They would probably endeavour to rely upon the profits of the last five years The recent (1900/1904) which embraces the period subsequent to the formal purchase of the good years. New Harbour Dock Company and the Prye River Dock Company and the domi- nating of the Slipway and Engineering Company at Tanjong Rhu.

It is no doubt also the period which will show the greatest gross earnings and Prospec the greatest net profits. So far as it suits the Company's case the past will be tive main-

tainability. brought in to show, inter alia, the enormous increase in shipping visiting the port, and the increase in revenue of the Company and of those now absorbed by it. In view of these it will be contended that the annual income equal to that of the past is not only well secured but that there certainly will be an increased income per unit of capital employed: that the potentialities of the Company are certain, are enormous, and are convertible into cash now, and that the Company should be paid this hard cash.

It will be pointed out that the value of the shares has also been so high as to Share show that the shareholders, especially recent purchasers, are certain of better times market. coming, hence the anomaly of the debentures paying an equal or even higher rate of interest than the ordinary shares.

extension

The share value will be supported by evidence showing that large sums have Expendi been expended in extensions and new works of varicas kinds, especially in the last ture in five years that these sums have been paid out of revenue although they are certainly of works, capital works, and that therefore the balance-sheets should be re-constructed so as &c. to show the real profits earned by the Company and the real value of the assets. Lands

The resources of the Company as to lands only awaiting development for available additional works or for sale when the market is at its best will be enlarged on. develop.

for

ment

It will be claimed for the Company that its works are in good condition and Condition well maintained, and that further economies in management could be effected of works.

by the continuance of the policy followed by the Company in recent years.

able

It will be claimed that the Company's position is unassailable, that in fact by Unasail- the swallowing up of all competitors it has obtained a permanent monopoly and can, position of therefore, dictate within wide limits its charges for shipping and repair work. This company. will be supported by evidence of the increase of rates made in recent years which the Company regard as established and not detrimental, and, therefore, secured against reduction although exchange has risen more than 20 per cent. and will pro- bably rise to even 25 per cent.

With regard to the reserve funds invested in surplus lands not required for the undertaking it will be shown that the value of these now greatly exceeds what was paid for them: that a similar increase of value may be relied on in future because the shipping of the port will certainly increase. It must go to Tanjong Pagar, and the more business at Tanjong Pagar the greater the value of all property in the locality. That, therefore, the surplus lands are of enormous value, and should not be taken merely at the market price at the appointed date, but at the highest price at which they might possibly have been sold or even at an assumed price estimated 7 to be obtainable in the future.

PUBLIC RECORD OFFICE

Reference :-

TEC.O. 882

חחון!

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

PUBLIC RECORD OFFICE, LONDONİ

Particulars will be put in showing the charges for similar facilities and work tive

Compara in other ports, and it will possibly be contended that the present charges could be charges increased without imperilling the popularity of Tanjong Pagar.

and facili- ties.

It will be pointed out that the character of the buildings erected in recent years Improve- has been of a very much better quality than in former years, and that, therefore, the ments in charges for upkeep will gradually become less.

buildings.

recent

: