§ MR. WEDGWOOD (Newcastle-under-Lyme)I beg to ask the Under-Secretary of State for the Colonies, with reference to the Tanjong Pagar Dock Company award, whether the shares in this company were quoted at $240 when expropriation by the Government was first decided on; whether the Government was offered the shares at $700 by the company; and whether the arbitration award of Lord St. Aldwyn forces the Government to pay $783 per share, equivalent to $880, comparing the present value of the dollar with its value two years ago.
§ MR. CHURCHILLI believe that the figure given in the first part of the hon. Member's Question is approximately correct. I do not understand that any formal offer was made by the company, but $700 was mentioned by the directors in conversation with the Governor. The award works out at about $755 per share, which, at 2s. 4d. the dollar, would, as the
† See (4) Debates, clxv., 394.‡ See (4) Debates, clxv., 729.56 hon. Member suggests, be equivalent to $880 at 2s.
§ MR. WEDGWOODI beg to ask the Under-Secretary of State for the Colonies, with reference to the Tanjong Pagar Dock award, whether, on 21st June last, the shares of this company were quoted at $485 per $100 share for sellers; and that the award, declared on 14th July, involves the Straits Settlements in a liability for the purchase of those shares £1,000,000 in excess of their total value as at that quoted price.
§ MR. CHURCHILLThe Secretary of State has no knowledge of the quoted price of these shares at the time mentioned by the hon. Member.
§ MR. WEDGWOODI beg to ask the Under-Secretary of State for the Colonies, with reference to the Tanjong Pagar Dock Company award, whether the costs of this arbitration will exceed £40,000, and of this amount how much Lord St. Aldwyn will receive; and whether this House will have an opportunity of discussing this arbitration.
§ MR. CHURCHILLYes, Sir. The cost of the arbitration will be largely in excess of £40,000. I am unable at present to state the amount exactly. Lord St. Aldwyn received a fee of £5,750 for his services as umpire. The latter part of the hon. Member's Question should be addressed to the Prime Minister.
§ MR. WEDGWOODHow long did the arbitration take to sit at Singapore? How many witnesses who appeared before the arbitration came from England?
§ * MR. SPEAKERNotice should be given of a Question involving such details.
§ MR. WEDGWOODI beg to ask the Under-Secretary of State for the Colonies whether the total capital of the Tanjong Pagar Dock Company was $3,700,000, on which 12 per cent, per annum was paid until the Government decided to expropriate the property; whether the award of Lord St. Aldwyn involves a payment of about 28,500,000 appreciated dollars for this property, or 57 sixty-five years purchase of annual dividend; and whether he is aware that Governor Sir John Anderson stated, on 13th February, 1905, that fourteen years purchase would be the usual rate in Singapore.
§ MR. CHURCHILLThe figures given by the hon. Member are correct, except that 12 per cent. was the smallest dividend paid in recent years, nor did the dividends accurately measure the value of the property, and I may remind him that among the assets taken over by the Colonial Government is a considerable amount of land not required for the purposes of the company's business. I presume that the hon. Member, in the last part of the Question, is referring to the Governor's despatch No. 23 in Cd. 3249. He stated in conversation with the directors that 7 per cent. was the ordinary rate of interest in Singapore, and that expropriation on that basis would mean fourteen years purchase of their ordinary dividend.