CO885-(7-8) — Page 527

83

48

PUBLIC RECORD OFFICE

Reference -

C.O. 885

8

PUBLIC RECORD OFFICE, LONDON

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

•

satisfactory as in point of quality, and it is gratifying to us to find that the unceasing vigilance which we bestow on this all-important matter has been so successful. The exceptions are the Governors of Jamaica and the Straits Settlements. The former appends to his despatch a statement purporting to show that stores bought by us for the railway are more costly than those formerly supplied by a local firm. This statement will be dealt with in detail later on, and we need here only observe that no indication of quality is given, and that in its absence any such comparison is worthless. Sir F. Swettenham quotes an instance of alleged neglect on our part to take the initiative in securing economical expenditure in respect of the supply of stamps and currency notes.. We shall deal in detail with the instance in question, but we would here remark that, considering the unique position of Messrs. De La Rue & Co., this case is obviously a special one, lying quite apart from the ordinary commercial trans- actions where there are many makers, and where we have, therefore, means of getting competition and making comparisons. If, therefore, it is the intention of Sir F. A. Swettenham to suggest generally that we fail in our duty to secure the lowest prices, we regret that he has not given an instance of a more ordinary character rather than one which is entirely sui generis. We notice that the Colonial Treasurer writing on the same point in the letter enclosed in the despatch also only suggests the case of postage stamps, and Sir F. A. Swettenham himself, in the following para- graph, states that he is satisfied that the Crown Agents obtain good value for the money expended. On all occasions which admit of it we carefully compare the estimate of a firm with catalogue prices or prices shown in previous supplies, and if from these materials or for any other reason we think that a reduction can be claimed, we write and ask for it; this is constantly being done, and to such an extent that it is impossible to report such details to the Colonies, who are probably unaware of the amount of attention given to such matters. As an example of an important re- duction in cost made on our initiative we may cite the following case.

36.

On the 27th February, 1901, having made previous enquiry into the matter, we represented to the Secretary of State that, owing to the combination among English cement manufacturers and the cost of carriage from the Medway to Liverpool, a saving of over £250 to the Government of Southern Nigeria could be effected by placing an order for 600 tons of Portland cement, required for the quay wall at Old Calabar, with a German firm for delivery at Hamburg. With the concurrence of the Secretary of State the order in question was placed as recommended, and the principle of admitting foreign competition for supplies of Portland cement has since been applied in other cases, with very favourable results as regards the prices paid, not necessarily to foreign firms.

37. A notable instance of these results is the order for the cement, 48,000 casks or (say) 8,570 tons, required for the Colombo Harbour Extension Works during 1902. The estimated price was £32,000. By holding out the possibility of foreign competition we obtained offers showing a reduction of price as compared with former quotations of about £3,000 and by further negotiations, in which we made use of our freedom to place the order abroad, we succeeded in reducing this amount by more than £2,000. We now expect to execute the contract at about £24,000, and we think it fair to say that by our negotiations we have saved the Colony quite £5,000. At the same time we succeeded, with the help of similar considerations, in considerably reducing the cost of freight. Such services as these are in the ordinary course quite,~ unknown to Colonial Governments, as we do not attempt to report to them the constant efforts we make to obtain low prices, but of course the results are apparent.

38. There is also in the replies. with the exception of those from Jamaica and the Straits Settlements, a remarkable absence of complaint of mistakes in the execu- tion of our business. Considering that the store transactions of the last three years have involved the expenditure of upwards of five millions sterling, divided into more than ten thousand requisitions, many of them containing great numbers of very small items, including every conceivable variety of stores, and often expressed in obscure terms, we submit that this result cannot but be regarded as satisfactory.

39. The one point on which most of the replies lay stress is that of the time taken in the execution of indents. In considering our responsibility in this respect it is necessary to distinguish between the operations conducted in this office by our own staff and those far larger operations for which we have to depend upon others over whom we have at most but a partial control.

40. The principal test of the rapidity of our own operations is the time occupied in placing orders. Even at this stage we are often dependent upon others; technical

advisers have to prepare designs and specifications; printers have to print them; we are dependent upon manufacturers and others to send in the quotations we ask for. All these things take time during which our responsibility is limited to selecting those likely to serve us best, and urging them to all reasonable speed. These considerations are not always present to the minds of Colonial officers, and there is a not unnatural tendency on their part to attribute delay of whatever description to us alone.

41. It will, we think, be seen from the numerous cases mentioned in the de- spatches, of which we give the details, that even in these picked instances of delay no serious complaint is invited by the time occupied by us in placing orders. Ordinarily the whole of an indent, which may contain hundreds of items and require apportion- ment among several makers, is sent out in a few days. This, however, we regret to say, has been subject to frequent exceptions. But it should be taken into account that, unlike the ordinary merchant, we receive nearly all our orders by mail in large batches from several Colonies at a time. The result is that (as we have to arrange our staff so as to keep it constantly employed), it is impossible to deal with all the orders simultaneously. The same difficulty is, we have no doubt, experienced in the Colonial Office. Also the merchant deals with only a limited range of articles, whereas the demands made upon us are of the most comprehensive character, and some time is required to decide the course to be taken with all the items in a long list.

42. In some cases delay is caused before we can place the orders by our being instructed to furnish an inclusive estimate, or not to exceed a fixed sum. With ordinary stores packed in bales and cases, or with rails and other articles of known weight and frequently shipped, this need occasion little or no loss of time. But in the case of heavy machinery, launches and other steam vessels, and any articles for which special freight quotations must be obtained, much time may be absorbed, for to ascertain the freight it is necessary to supply particulars of dimensions and weights entailing calculations which makers are not in the habit of making until they have secured an order, and in which it is difficult to hurry them. The practice of so in- structing us may be convenient for financial reasons, but it secures no economy and often loses much time.

43. The success which we claim in respect of quality and price is necessarily attained at some sacrifice of speed. Rejection by the Inspector inevitably causes delay, and it has also sometimes happened that time is lost through our anxiety to secure the lowest prices. When the tenders received appear unduly high, we, if possible, have the specifications revised with a view to reducing cost, and then either negotiate with the, most favourable tenderer or invite fresh tenders from a wider range of firms, and in this way considerable sums are saved.

44. Furthermore, the period of survey taken being that of the South African war and the development of the Nigerian Protectorates, has been one of enormous and unforeseen increase of our work, and one during which there has been unprece- dented pressure in many branches of trade. An idea of the increase in our business may be gathered from the figures of our cash entries, which are the best indication of the quantity of business done.

In 1895 there were 34,800 entries. In 1900 there were 63,600 entries. In 1901 there were 75,000 entries.

We are, however, most anxious to reduce the time taken in placing orders to the narrowest possible limits, and for this object we have largely added to and have re- organised our staff, and further large additions are intended directly we can arrange for the necessary office space. We believe that the results are now apparent, and that the cases of undue delay in this office are becoming rare.

45. Such delays, however, at their worst are a small matter compared with those which cause general and well-founded complaint from the Colonial Governments, and which, we may add, cause us constant trouble and anxiety, viz., the failure of contractors to complete orders in the contract time. We regret to have to say that this is almost habitual when articles have to be manufactured, and that even firms of the best reputation constantly exceed the time. This is far from being our ex- perience alone. In the evidence before the recent War Office Committee (Cd. 581, 1901), General Sir H. Brackenbury stated, "nearly all who supply us get into arrear: there is scarcely anything we have that is not behind time,

In 99 cases out of

100 contractors will not deliver to the date they have tendered for." The Chairman (Mr. Clinton Dawkins) himself observed, "No doubt it is the general experience that manufacturers do not supply goods very promptly, and it is a difficulty that has to be

9922

L2