ROYAL NIGER COMPANY.

HL Deb 24 May 1897 vol 49 cc1109-14

LORD STANMORE

rose to ask a question of the Secretary of State for Foreign Affairs with respect to the future government of the territories of the Royal Niger Company. He said their Lordships would remember that in the earlier part of the present year the Royal Niger Company by a series of Measured admirably planned and as admirably executed, assumed a more direct control than it had previously ex, assumed a more direct control than it had previously exercised over extensive regions to the Niger, which, although within its sphere of influence, had until then remained in a position of practical independence. By so doing the Company had largely increased its responsibilities, and it had become a question whether some modification of its mode of government might not be requisite in consequence. He had nothing to say against the Company's system of administration or its working—quite the reverse. He believed that in regions such as those in question a government like that of the Royal Niger Company was the best now and for a long time to come. It was a cheap form of government, but that was by no means its only or even its chief advantage. It could deal both with men and with measures in a more rough-and-ready way then a public department fettered by inelastic rules. Its servants, having only their own superiors to look to, and having their field of action confined to the region in which they served, were far more likely to identify themselves with its interests and those of its population than men belonging to a more widely-extended service, who naturally looked on employment in an unhealthy and uncivilised region chiefly as a means of escape through promotion to a more healthy and agreeable post. The attention of the directors being devoted exclusively to their own affairs, there was no danger of that sort of paralysis which arose from the necessity under which an overworked and overburdened department sometimes found itself of postponing the consideration of matters in themselves important till others more important or more pressing had been dealt with. But, on the other hand, the exclusive attention to its own affairs and interests which enabled a company to conduct its business successfully, might also lead to its not considering questions adequately from an Imperial point of view. The recent enlargement of the Niger Company's administrative area brought it into contact with the spheres of influence of other nations not less susceptible than ourselves. When such contact existed, occasions for friction must arise; and when they did, men who regarded above all things the maintenance of the rights and position of the local authorities would be not unlikely to act in a different manner from men with whom the importance of maintaining good relations between ourselves and other European States was a primary consideration. Much emphasis was given to this point by the telegrams which appeared in the newspapers last week, and in which it was asserted that French officers had forced themselves against his will upon the King of Boussa on the Niger, and that he had appealed against them to the company, which maintained, he believed rightly, that Boussa was one of the vassal States within its sphere of influence. Here were the elements of a very pretty quarrel, and it was evident that much might depend upon the tact and forbearance of the local officials and the instructions they received from their directors at home. He would ask, therefore, whether, in view of the altered situation produced by recent events, and the greatly increased responsibility of the Company, Her Majesty's Government contemplated the assumption of any greater degree of supervision over or participation in the executive administration of the Niger Company than the at present possessed, either by the addition to the board of directors of members nominated by the Crown or by any other means. Before sitting down he wished to repeat that he had no charge to bring against the Company. He believed the principles of its administration to be sound and its action to be judicious, humane, and just; but he thought that when questions of interest to other States as well as to ourselves were likely to arise, it was desirable that there should be greater security than existed at present that those questions would not be dealt with from an exclusively local standpoint.

*THE PRIME MINISTER (The Marquess of SALISBURY)

I am bound to follow the example of my noble Friend, and in dealing with this question carefully to guard myself from any appearance of censure against the Company or against those by whom the Company's affairs are directed. On the contrary, I think it is impossible to mention the names of the founders of the Company, of the late Lord Aberdare, for example, and especially of Sir George Goldie, without recognising the very high administrative ability which they have shown, and their great enterprise and resource, which place them high on the lists of the pioneers of English civilisation in the dark places of the earth. ["Hear, hear!"] I think they deserve the very highest praise. But because I freely render that tribute, I am not on that account bound to admit that the system which they are working is, in existing circumstances, and as matters have developed, in all respects the most expedient that could be devised. I do not wish to enter far upon a question which is occupying the anxious attention of Her Majesty's Government, and with regard to which I cannot say that definite conclusions have been arrived at. But I do not see any probability of an issue from our difficulties by adopting the change of constitution which is suggested by my noble Friend. He suggests that we should secure a more complete control over the action of the company by having Government directors upon its Board. I speak from memory, but my impression is that this country has never adopted that mode of government, has never acquired that control without giving something in the nature of a guarantee of profits to the company over which the control was exercised. There is the old instance of the East India Company. When this country assumed the entire direction of the affairs of that company, it guaranteed it a dividend of 10 per cent. Again, there are the railways in India, where a Government director is a Chairman of the Board. In all those cases there are Government guarantees of the dividends of the shareholders, and it is only reasonable that it should be so, because, of course, the first object of the directors of a company is and ought to be to secure a proper, fair, and legitimate return for their investments to the shareholders who have placed them in power. But the object of a Government must very often be very different, and the course which they may take may not be that which will secure the highest dividends to the shareholders. It does not seem, therefore, to be fair to take the management of a company out of the hands of the shareholders unless you are prepared to indemnify them against any pecuniary injury that may result. At the same time, I am not prepared to say that the present state of things on the Niger corresponds entirely to the necessities of our time. My noble Friend is quite right when he says that the progress of the Niger Company has brought them into close contact with territories or spheres of influence claimed by other nations, and the thought does arise that, however patriotic the Company may be, it is not to be supposed that they are utterly uninfluenced by considerations of the commercial duties which are imposed upon them by the position which they occupy. On the other hand, the diplomatic questions raised by their neighbourhood to other territories are often of a very difficult and delicate character, and it is impossible not to feel that a more direct influence on the part of Her Majesty's Government would be desirable if it could be obtained. There are two sets of difficulties. There are the difficulties with native races, whose rights we are accused of having dealt with too cheaply, as in respect to the persons who are called the men of the town of Brass, who complained that their markets are entirely destroyed by the regulations and interposition of the Niger Company; and then there is that much more difficult and delicate set of questions to which my noble Friend alluded, which arise out of the fact that the rights to territory are not sufficiently defined to exclude the possibility of contest, and that matters may even come to such a point as they have done in the case to which he referred, the case of Broussa, where a French force has marched in and taken a territory which the Niger Company imagined to be their own. The matter, of course, is not one which I can speak of in detail, because it is the subject of diplomatic communication; but the fact that the controversy should have arisen, on whichever side the right lay, shows the difficulties which are pressing upon us in consequence, in part, of the present organisation of the Queen's influence and dominion in that part of Africa. I have only, therefore, to answer in the negative my noble Friend's suggestion, and to say that we do not think it probable that the difficulties, whatever they are, can be adjusted by putting Government directors on the Board. I recognise that there are many difficulties attaching to the present state of things, and I can assure my noble Friend that they are occupying our most anxious attention. I do not think I should be justified in going further into that at the present moment, and I will only conclude by again reiterating that in any observations I have made I do not wish to imply the slightest blame for the conduct of the directors of the Niger Company, for whose qualities and administrative and military success I, in conjunction with all who are acquainted with the circumstances, entertain the most unfeigned admiration. [Cheers.]

THE EARL OF KIMBERLEY

I wish to say a word or two on this subject, as it fell to my lot to deal with questions connected with the Niger Company of some importance at the time when I held the seals of the Foreign Office. I entirely concur in what the noble Marquess said at the beginning of his remarks, and repeated at the end, as to the success of the Niger Company, and the singular ability they have shown in administering the territories under their care. My experience was quite sufficient to show me, as it has shown the noble Marquess, that there are very serious difficulties connected with the position of the Company there which require the earnest attention of Her Majesty's Government. These difficulties are, above all, difficulties with foreign nations who have territories and spheres of influence adjoining. It will be perfectly obvious that other nations have a right to look to the Government of this country for redress in any grievance of which they may have to complain, and that any supposed aggression on their part or violation of our rights is a matter which involves the Government of the country in, it may be, serious discussions with other Governments. It always appeared to me that it is not altogether safe when questions of this kind may arise where the Government have not a clearly-defined position— although they have abundant powers, no doubt, under the charter—to enable them to ward off by timely action difficulties; which might lead to complications of a serious character. I have no desire to refer further to this question; the difficulties will be present to the minds of everyone who knows the condition of affairs in that part of the world. I only wish to add that it gives me great satisfaction to hear that the attention of the Government is seriously directed to these matters with a view to introducing a remedy. I agree with the noble Marquess that the placing of Government directors on the Board would be by no means a sufficient remedy.