CO885-(15-16) — Page 140

32818.

PUBLIC RECORD OFFICE

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C.O. 885

Reference :-

15 PUBLIC RECORD OFFICE, LONDON

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

SIR,

No. 104.

(STRAITS SETTLEMENTS.)

LAW OFFICERS to COLONIAL OFFICE.

Royal Courts of Justice,

September 17, 1901. We were honoured with your commands signified in Mr. C. P. Lucas's letter of the 15th ultimo, stating that he was directed by you to request our consideration of a question which had arisen in connection with the grant by the Crown of a lease of Christmas Island, dated 17th February, 1891.

That the lease was granted for 99 years from the 1st January, 1890 (among other conditions) in consideration of the payment of a Royalty payable on the 1st January every year of five- per cent. on all timber, phosphates or other minerals which should be cut and gotten by the lessees on and from the demised premises, such Royalty to be calculated on the selling price of such timber, phosphates or other mineral, without any deduction from such price for the cost of cutting and getting same, but deducting from such price, the costs, if any, of freight, commission, insurance and other like expenses.

That Mr. Lucas was to enclose for our consideration a correspondence which had passed between the Crown Agents for the Colonies, the Christmas Island Phosphate Company and the Colonial Office in connection with the deductions which the Company claimed to be entitled to make for the purpose of assessing the Royalty payable. That it appeared from the accounts of the Company that they had arrived at the gross selling price by adding to the amount obtained for the phosphate actually sold during the year, viz.:-£95,138 11s. Id., the cost of producing the phosphate which remained on hand at the end of the year, viz., £4,497 6s. 2d. That they had then deducted the cost of producing the phosphate which was on hand at the commencement of the year, viz., £3,891 73. 4d., and had thus arrived at a basis for their profit and loss account. from the result thus obtained, viz., £93,744 98. 11d., they then made the following deductions before arriving at the figures upon which they had calculated the Royalty, viz. :-

DEDUCTIONS.

That

Cost of Producing Phosphates during the year. Taken from the Phosphate Account.

Contract labour

General labour

Travelling expenses

General stores

Rent

Salaries

Cables and telegrams

Singapore expenses Steamer calls

Passages of staff, &c. Medicines...

Freight and charges Loading and trimming Analysis fee

£ 3. d.

6,350 6

2

... 1,250 2 11

686 11 2

554 7 10

157 8 5

962 0 5

150 19

9

170 19

6

255 17

6

615 2 10

80 15 5

£11,234 11 11

40,978 12 7

36 7 10 34 14 3

Commissions on sales

1,180 16 10

Total from Phosphates account

£42,230 11

£53,465 3

6

5

9941-35-9/1901

WI 852 D&B..

2

Also from Profit and Loss Account.