-proceeding good
over which then has been
trouble in getting
data sent]
in getting right
A Stutts 16
Mo Lucas
I am afraid practicable
al A.1.0
no other course
Jug 1679 C.P.L. 16 at once
My Lord,
I have the honour to acknowledge
the receipt of Your Lordship's Despatch No. 11 of the 16th.
of January on the subject of the Ordinance to amend the
Widows and Orphans' Pension Fund Ordinance, 1900.
The only explanation I can offer
of the fact that in 1903 the Directors of the Fund and the
Executive Council agreed to the proposal for the taking
over of the Fund by the Government, is that neither the then
Chairman of the Fund nor any Member of the Executive
Council, was a contributor. None of the four Directors who
were contributors raised at the time any objection to the
transfer, and this being so the Chairman and the Executive
Council concluded that there was no opposition to the
proposal on the part of the contributors who do not appear
to have given the matter detailed consideration.
RIGHT HONOURABLE
THE EARL OT LOIN, K.G.,
When, however, the Appropriation
Bill for 1907, in which the Widows and Orphans' Pension
Fund was included as Revenue, came before the Legislative
Council the Un-official Members, as has been explained in
3970 Sir Matthew Nathan's Despatches No. 243 of the 6th. of
Jou 46 48 76
Enclosure 1.
October, 1905, and No. 280 of the 15th. of November last,
objected to the inclusion of the fund. A reference to the
reports of the meetings of the Council forwarded with the
first of those Despatches will place Your Lordship in
possession of the remarks made on the subject by Messrs.
R. Shewan and G. Stewart who had been deputed by the Un-
-official Members of Council to review and criticise the
Budget for the current year.
Prior to the meeting of the
Legislative Council referred to, Sir Matthew Nathan had
received representations against the transfer from con-
-tributors to the fund; and he, therefore, decided not
to introduce the Bill to amend the Widows and Orphans'
Pension Fund Ordinance until these representations had
been put into definite shape by a small Committee of
Civil Servants constituted for the purpose.
I now enclose copy of the report
of the Committee. The figures and definite expression of
in the other among a hig
Enclosure 2.
opinion promised in the 7th. paragraph of the report have
not been received for the reason, as I understand, that as
Sir Matthew Nathan was opposed to the scheme of compulsory
Insurance, the contributors who favoured such scheme did
not consider it worth while further to pursue the subject.
Upon receipt of Your Lordship's
Despatch under acknowledgment, it was with its enclosures
printed and circulated among all the contributors to the
fund. A meeting of representatives from each Department and
of the Directors of the Fund, was subsequently held and
was presided over by the Treasurer, who is Chairman of the
Directors.
Mr. A. M. Thomson who is an
advocate of the transfer of the Fund to the Government,
explained the purport of Your Lordship's Despatch, and the
question was fully discussed. But the great majority of
the contributors and all of the Directors, except the
Chairman, were opposed to the transfer of the fund.
I now enclose copy of a Memorandum
in which the present Directors of the Fund with the
exception of the Chairman (Mr. C. McI. Messer,
Treasurer) have set out the views of the contributors on
the question of the taking over of the Fund by the Govern-
-ment. The figures therein quoted as to rates of interest
prevailing in the Colony are correct.
I understand that the majority
of the Directors and contributors are considering a
scheme of compulsory Insurance which would remove the
unpopularity of the present Fund for the reason that each
contributor would know that he, his heirs, or assigns
would eventually get some benefit in return for his con-
tributions; while all, or very nearly all, the Directors
and contributors feel that the Hongkong Fund has had such
a specially favourable start and is accumulating so rapidly
that they may confidently look forward to the possibility
of an increase in pensions, even on the Ceylon rates, if the
Fund is kept separate and fresh valuations are made from
time to time.
In these circumstances I would
recommend that the proposal to transfer the Fund to the
Government be dropped, and that if necessary the actuary
be consulted as to whether the tables attached to the
Ordinance can with safety be adopted. If the report is
favourable I would ask Your Lordship to sanction their inclusion
inclusion in the Ordinance.
I take this opportunity of acknow-
-ledging the receipt of Your Lordship's Despatch No. 25
aba of the 5th. of February.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant,
Officer Administering the Govern-
Enclosure
Reef 25 JUL 07
Hongkong, 14th. November, 1905.
The Committee appointed by mis xcellency the
Governor to put forward the views of the Civil Service on the subject of the widows and orphans Pension Fund have the honour to report that
after consulting all contributors to the rund they find:-
That the Service is unanimously opposed to the
proposal that the Fund should be transferred to the Government.
That a majority of contributors are in favour of a compulsory insurance schere in place of the present Pensions dolore.
That a minority prefer that the existing schere
should continue, out are of the opinion that the pensions are insuf-
-ficient in view of the large amount of the total annual contributions. They further suggest that the daughters of deceased officers should be supported from the rund until earringe instead of until the age of 21
years only.
With regard to the question of the transfer of
the wund the Committee desire to point out that the Goverment has,
under Section 13 of Ordinance No. 30 or 1990 and Section of urdisiner
No. 3 of 1900, guaranteed that all contributions shall during the
continuance of the rund cear interest at the rate of 6% per annul,
Under present circumstances the Government employs
the Fund for purposes of General sxpenditure paying 6 compound
interest for the use of the rongy. The Committee understands that it
Honourable
The Colonial Secretart.
is now proposed that the Government should continue to use the money but should cease to pay interest upon it, on the ground that the Government will eventually be called upon to pay in persions and
expenses of managekoпt a sua equivalent to the total present capital together with future annual contributions with 3 corpound interest
4. The Hund has at the present time a credit on AL30
of $220,000, which at the rate of interest guaranteed by the lovernment, and with the addition of a year's contributions, estimated at $29,000, would at the close of 1903 be increasds to a total of $282,300. The pensions payable in 1908 are estimated at a sur of 45,475 and the expenses of management du ing that periol would probably not exceed the sum of $2,500; so that at the peginning of 1907 there would co a
total capital sum of $254,285 wilch. would continue to increase at
compound 1cterest.
The Government is apparently of the opinion that
the annual expenditure 14 respect of pensions and cost of management Alli vitimately equal if not exceed the sun of the annual contributions
together with interest on the capital calculated at 27. The Civil Service Contributors on the other band anticipate that the capital of
the und will increase so largely as to take it possible at some Future jate to revise and to increase the ratos of pension; and they Aro propared to undertake for themselves the risk that the Government now proposes to undertake, ainely that the expenditure way oventuali,
exceed the income.
འ. With regard to the second of the Committen's findings it is urged by a majority of the contributors that each officer is in natural justice ectitied to the eventual return *ith interest of that portion of his salary which he has been compelled to surrender. They suggest in place of the existing schere a schere of
compulsory
individual
corpulsory, insurance based upon the present 4% reduction of salary with
the stipulation that the policies shall be held by the Government or by a Board of Directors and that an officer shail have no power to alienate his policy from his wife or children or to discontinue his
payments thereon.
The Committee have taken stops to ascertain
the prospects of each individual contributor under an insurance schrie cased upon these principles and when definite figures have been optain- -od they propose to ask for a definite expression of opinion from all
officers concerned.
in the roantine they have the honour to request
that is excelleccy the Governor will be good enough to move the Secretary of State to postpone for the present any action in connection with the proposed transfer of the fund, as the Ordinance authorizing the transfer can, in the event of such proposals as may or put forward
being disapproved, be made retrospective and with effect from the
jabe originally intended.
We have etc.,
($1.) Henry S. Berkeloy.
(81.) Francis Clark.
(31.) 1. A. V. Johnston.
(51.) W. Fletcher.
CICIO DAJ JE.
leubivikai
12 nov. (orica
mon. Colonial Secretary,
Brolosure.
After ascertaining the views of the contributors
to the Widows and Urphans' Pension Fund on the proposal that the Govern-
-pent should take over the Bund we find:-
That a large majority of members is strongly
opposed to the Hund being taken over by the Government.
With regard to this finding it is argued that the
valuation of rund as it existed on 31st, December, 1900, showed that the
gross liabilities of the Hund then amounted to $232,337, that there was
a surplus of between 47 and 5% of the liabilities and that therefore the
Yund was so far in a sound financial position: that although the present
liabilities of the Hund could not be determined until a further valua-
-tion took place, the balance to credit of the Mund on 31st. vezencer,
1908, amounting to $272,022 appeared to indicate that the rond was
maintaining a position of solvency: that the financial position of the
rand as disclosed oy the next valuation or by sone further valuation might justify an increase in the oenefits derived from the wund and that
the cenefits now offered were not sufficient compensation for the
sacrifice of possible prospective benefits end for the loss of mange-
As rozards the contention that the Government
made in effect a large contribution to the rund by agreeing to pay
interest at the high rate of 3 on the monies belonging to the Hund
deposited with it" we would point out that the rate of interest charged
on loans against first class security by the Hongkong and Shanghai
Ranking Corporation since 1991 has been:-
Xolo AOR
To the Fuclio. To the Government
#ro# 1 .1.91
74 per annJI.
1.9.91 30 .9.92
1.10.98 - 30 .9.95
1.10.95 - Jute
2% per annum.
5/2 1/23
per acnum.
per acnuN.
7% per annum.
per annus.
4% per annue
per annum.
and on current account:-
from 1.1.01 date
27 per annus,
Hrom these figures it is evident that the
monies belonging to the Fund decosited with the Government have possess-
-ed a value to the Governsent of 28 - varying with the state of its
banking account. And it is within our knowledge that for some years
past and for periods varying in length the Goverment's account with the
Bank has been overdrawn as a result of currency transactions.
It is also evident from the figures that
the monies belonging to the und have possessed a marketable valus
during the whole period equal to and during part of the period exceed-
-ing the Sovernments contrication.
Hurther, we have made quiries and are
informed on 200d authority that the sund could be lent out on norizade
at the present time at as much as 97 9* and that this form of invest-
-Lont would offer the very best security to the contributors.
Ae would suggest therefore as a means of
relieving itself of the burden of paying A on surpluses that the
Soverment might itself invest or appoint trustees to invest the monies
belonging to the Pund in approved local securities.
In conclusion we would respectfully supilt
that the large majority of the contriautors, a view of the fact that they are never likely to ce transferred, cannot be regarded as coing
affected by the arquront for the und ceing taken over by the Government
and for the introduction of the Ceylon rabies that "it is very jesir-
desirable that the pension rates in Hongkong, the Straits Settlements,
and the Hederated Malay States should ce the same, especially as for
some purposes the thres administrations are manned by a joint service".
The very small section of contributors who are eligible for transfer have presumably no other advantage to gain, the pension funds of the three administrations ceing distinct, than that they would not on transfer find themselves possibly compelled to subscribe to a rund at
a higher rate than that to which they have been accustored.
(sd.) S. B. C. moss.
(S1.) Prancis Clara.
(81.) 8. H. D'Aquino.
(83.) m. Crofton.
Üiractors.
thong C, D.
T.E. Young Esq
Mr. Harding 21/9
stubbs 27
Mr. Just.
Mr. Antrobus.
Mr. Cox.
Mr. Lucas.
Mr Johusa 267s
Sir F. Hopwood.
Mr. Churchill.
The Earl of Elgin.
In Young to C.O. 37eb 1905 c.o. tom Young 8 Apr 1905
15 nov 1906
(46437/06)
16 Jan 1907
(46437/06)
24 June 27
(26442/07)
30 Sept 1907
with reference to
the letters noted in
the margin, I dircted by the Earl
of requi
to bawomit
to you for your information the accompanying copies of comspondence with the lovernor of Hongkong
the proposal
that the Widows a
Pension Fund
that Colony should
br läken over
Government
• ?2. De siew of the
acher assumes
attitude
this question by
stributors
the Fund,
Lord Elgin proposes to
inform the Hongkong Government that he is
not prepared to consider
adoption of
isurance scheme
allow the investrucut
of the Fund in local
securities;
conschis that no
adequate rason has been
advanced against the
the Fund;
but that, as
the members appear
misapprehension
the position of
the Fund
valuation is
When the valuation. has bṣen made, the
contributors will probably a bitter position
to understand the to results of the taking
the Fund этиб
to state that hord Elgin will be glad to learn whether you will be good enough to undertake this ratnation
*gris on the basis.
the Oromance
the Tables whenk
desirable, steps 648
should be taken
mand for sending
home data for the
valuation of the fund.
31st December 19077
3 for the purposes
which the valuation requiind, it appears bobe necessary
a double
showing (a) the
valuation
basis of existing
Ordinances
and Pension Tables at
present in force, and
(b) the valuation on
the basis of disallowed Ordmance
* tables attached to th
which are identical with the
new Ceylingy from AAK
no 14 of 19064 1907 accordingly
you to be so gots as to furnish
containing
memorandum
statement of
necessary
by given.
data should
#. The valuation will this be similar to that how taking place in the case
mauritius
Widows & Orphans' Fund;
the case-
of that Colony difficulty appears to
thave been experienced
understanding exactly
how the nquind particulars
should be given, it will
probably
trouble to
the Directors of the Stongkong Fund of you will be
as to furmsh
separate
norandum containing
clear instructions
precise the
in which
the nece
necessary
rată should be given
(Signed) C. P. LUCAS.
overnor. No.
(Subject.)
DESPATCH.
22 JUL 07
1997 Arace 6907. _ HK, Shanghai Panching
ast previous Paper.
Corporation.
Submits.
for Fiddes
(Minutes.) Khare copies Cohibrary
This follars draft
exaith except that (α) in section
they have
asfinitive
speit min prent
agreed to
(b) the suspending
? Sanction the 4. Send for gosh & Freamly
40. Aquely
FB & L (78)-73427-9500-71-#
ext subsequent Paper.
Hongkong.
nolosures.
(on duplicate.)
Enclosure 2.
My Lord,
Government House,
Hongkong, 27th. June, 1907.
With reference to Your Lordship's
Despatch No. 102 of the 23rd. ultimo, I have the honour
to transmit for the signification of His Majesty's pleasure
the following Ordinance entitled:-
An Ordinance to authorise the Hongkong and
Shanghai Banking Corporation from time to time to
increase the Capital of the said Corporation from
the sum of Ten Millions of Dollars to a sum not
exceeding the sum of Twenty Millions of Dollars;
and to continue incorporated for a further term
of 21 years; and to continue in force for a fur-
-ther period of 21 years the provisions of
Section 3 of the Hongkong and Shanghai Banking
Corporation Ordinance, 1899, with regard to the
Excess Issue of Bills and Notes payable to bearer
on demand.
The customary report by the
Attorney-General is annexed.
I have the honour to be, My Lord,
Your Lordship's most obedient,
humble servant,
HE RIGHT HONOURABLE
THE EARL OF ELGIN,
Officer Administering the Govern-
Enclosure 2.
ATTORNEY GENERAL'S OFFICE,
REC 29 JUL 07
Hongkong,
22nd June.
Report on Ordinance No. 6
of 1907.
I have examined the accompanying Ordinance, entitled
An Ordinance to authorise the Hongkong and Shanghai Bank- -ing Corporation from time to time to increase the Capital of the said Corporation from the sum of Ten Millions of Dollars to a sum not exceeding the sum of Twenty Millions of Dollars; and to continue incorporated for a further term of 21 years; and to continue in force for a further period of 21 years the provisions of Section 3 of the Hongkong and Shanghai Banking Corporation Ordinance, 1899, with regard to the Excess Issue of Bills and Notes payable to bearer on demand
jand I om of opinion that the Ordinance is one which is not contrary to
the Governor's Instructions.
The object of the Ordinance is fully set out in
the preamble.
Antruperty
Attorney General.
Vide Manules on
50391,912
PROCLAMATIONS.
FRANCIS HENRY MAY.
Officer Administering the Government.
By His Excellency Francis Henry May, Com- panion of the Most Distinguished Order of Saint Michael and Saint George, Officer Administering the Government and Commander in Chief of the Colony of Hongkong and its Dependencies and Vice-Admiral of
the sume.
Whereas by section 2 of the Hongkong and Shanghai Banking Corporation Ordinance 1907, it was provided among other things that it should be lurful for the Company notwithstanding anything contained in section 22 of the Principal Ordinance (being the Hongkong und Shanghai Banking Corporation Ordinance 1866), or in the Deed of Settlement therein mentioned from time to time to extend or increase its capital for the time being hy the creation and sule of new
shares so as the same was made with the consent of a General (Extraordi ary) Meeting of the shareholders of the Company to be specially called for that pur-
pose and with the consent previously obtained of the
Governor and under such conditions and provisions
as he might think fit, such consent being evidenced
by a notification or proclamation to that effect under
the hand of the Governor and published in the Gazette,
and so as the total amount of the capital of the
Company should not exceed the sun of twenty millions
of dollars. Provided that whenever and so often as
any further capital was raised then a notification
or proclamation to that effect under the hand of the Governor should be published in the Gazetts and the present capital of ten millions of dollars together with such further capital should thenceforth be taken to be the fixed capital of the Company, but with power nevertheless further to increase such capital from time to time as wustherein provided.
And whereas it having been duly intimuted
to the Officer Administering the Government of Hongkong
and its Dependencies that the desire of the share-
holders of the said Company was further to increase
the capital of the said Company to the total amount
of fifteen millions of dollars by the creation and
sale of new shares subject to the provisions of the
Hongkong and Shanghai Banking Corporation Ordinance
1907 and to have the previous consent of the Officer
Administering the Government thereto,the said Officer
Administering the Government on the 15th day of June,
1907, in writing did signify his consent to the pro- posed creation of additional capital of the said
Company subject to the provisions of the said Hongkong
and Shanghai Banking Corporation Ordinance 1907 to
the extent of five millions of dollars.
And whereas it having been represented to
me that pursuant to the said consent a further capital
of five millions of dollars divided into shares of
$125 each has been crested.
Now therefore I in pursuance of section 2
of the Hongkong and Shanghai Banking Corporation
Ordinance 1907 do hereby proclaim that the said
further capital of five
five millions of dollars has been created and that
the said sum of five millions of dollars together with
the said sum of ten millions of dollars making in
all a total of fifteen millions of dollars shall
henceforth be taken to be the fixed capital of the said Company.
Given under my hand and the Public Saul of
the Colony, at Victoria, Hong Kong, this 20th day
of June, 1907.
By Command,
A.M.Thomson,
Colonial Secretary.
GOD SAVE THE KING.
No. 410.
CONSENT.
FRANCIS HENRY MAY,
Officer Administering the Government.
To the Court of Directors of the Hongkong and
Shanghai Banking Corporation.
I, Francis Henry May, Companion of the Most Distinguished Order of Saint Michael and Saint George, Officer Administering the Government and Commander in Chief of the Colony of Hongkong and its Dependencies and Vice-Admiral of the same, do hereby signify my consent to the proposed increase of the Capital of the Hongkong and Shanghai Banking Corporation from
ten millions of dollars to fifteen millions of dollars subject to the provisions of the Hongkong and Shanghai Banking Corporation Ordinance 1907.
Dated this 15th day of June, 1907.
DESPATCH.
overnot No.
Cary 171
HONG KONG
NO 27001
Sc 22 JUL 07
(Subject.)
1907 brace 7577907 : – Pills of Exchange
st prévious Paper.
for Risty
(Minutes.) are copies to Library
Junction LF
Jameld TET
26) * £ (73)~52057--35000-11-8
subsequent Paper.
"༧.¢ ༢༧ci =vAA! ༧ DP
No. 171.
Hongkong.
My Lord,
bur 23 JUL 857
Government House,
Hongkong, 27th. June, 1907.
I have the honour to transmit for
the signification of His Majesty's pleasure the following
Ordinance entitled:-
An Ordinance to amend the Law relating to Bills
of Exchange.
losure 2.
Enclosure !
dublicate.
The customary report by the
Attorney-General is annexed.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant,
RIGHT HONDURABLE
THE EARL OF ELGIN, K.G.,
Officer Administering the Govern-
Enclosure 2.
ATTORNEY GENERAL'S OFFICE.
Pre 29 JUL 07)
Hongkong,
22nd Jung1901.
Report on Ordinance No. 7.
of 1907.
I have examined the accompanying Ordinance, entitled
An Ordinance to amend the Law relating to Bills
of Exchange
and I am of opinion that the Ordinance is one which is not contrary to
the Governor's Instructions.
It is considered desirable to extend to the Colony
the provisions of 16 & 17 Vict. c. 59 sec. 19 and of 6 Edw. VII
Attorney General.
DESPATCH.
DYCTROT. No.
at previous Paper.
„J & L (78) ~~ 59957-~-2:4000-11-6
subsequent Paper.
No. 27002.
(Subject.)
R: 23 JUL 07
brace 90/1907 :- Nederlandsch-Insucke
Handelsbank
Ihr Risley
(Minutes,) share copies tohibrary
bire sumply taken the sts price
In 423-64/on bodily, except for the words
at the end of Sectia a ofthat crore whi are not applicable.
the shoul
They have however brought title lause to the beginning of the
& thus altered the numbering.
the Strait.
gt seenes
compared with the
has led thien into an
in § 9 (1) they say
shall not" came.
that section 3
into operation until The sts offre said the hut sectim 3 of the
Section 4
sts of is ordre
expat that is
section really meant,
? Ook if this isn't the case
noting that
is taken from
Hongkong.
the 5t3 Bic (a fast which they night
sanction.
little timeble & mentiming.)
So perceed
velosure 1.
duplicate.)
My Lord,
29 JUL 07,
Government House,
Hongkong, 27th. June, 1907.
I have the honour to transmit for
the signification of His Majesty's pleasure the following
Ordinance entitled:-
An Ordinance for giving to a Foreign Company
called the Nederlandsch-Indische Handelsbank
certain facilities for carrying on its business
in the Colony.
The customary report by the
Attorney-General is annexed.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant +
Officer Administering the Govern-
Conclosure 2.
HE RIGHT HONOURABLE
THE EARL OF ELGIN,
Enclosure 2.
ATTORNEY GENERAL'S OFFICE,
Red 29 JUL 07
Hongkong,
24th June. 190 7
Report on Ordinance No.....
of 190 7
I have examined the accompanying Ordinance, entitled
An Ordinance for giving to a Foreign Company called the Nederlandsch-Indische Handelsbank certain facilities for carrying on its business in the Colony.
and I am of opinion that the Ordinance is one which is not contrary to
the Gocernor's Instructions.
The object of the Ordinance is fully set
preamble.
out in the
Autonpects
Attorney General.
HONG KONG
Gov/27002
Y Aug 1907
Hong Kong
No172 7.8. dugard
Mr. Stutts 118
Mr. Fiddos. 278
Mr. Just.
Mr. Antrobus,
Mr. Cox.
Mr. Lucas.
Sir F. Hopwood.
Mr. Churchill.
The Earl of Elgin.
I have the honour to ack the re-
ceipt of Mr May's desp No 172 of June 27th and to inform you that H.M. the King will not be advised to exercise his power of disallowance with respect to Ord No 9 of 1907 of the Legislature of Hong Kong, entitled "An Ordinance for giving to a Foreign Company called the Nederlandsch-Indische Handelsbank certain facilities for carrying on its business in the Colony."
2 I observe that this Ordinance has
been copied, almost verbatim, from Straits Settlements Ordinance No XV of 1904 and it appears that too close
an adherence to the model has led to
an error in drafting. In section 9(1) resermodik nade, as in Straits
sutim 8 (1) of thee
laur Settlements Oxinance, reference is
made to section 3,: but section 3
of the Straits Settlements Ordinance
corresponds to section 4 of the present
apparently Ordinance, and it is doubthees to the
latter section that it is intended to
I have &c.
May 173 1907
ast previous Paper.
ای که در این کلی
Further to R. Commission
24 Aug Booby.
la à La (78)—55307—25@00-3 1-3
at subsequent Paper.
Fercutan
HONG KONG
(Subject.)
DESPATCH.
22 JUL 07
Shipping Rings or Conferences
Leudo reportly Harbour Master letter from lehamber of Commerce. Submits observation.
excloses report bey Attorney Secural
on sulrect
by Jidde 31/7 Smeral Dopl
Mr Fiddes
enclosures
(birc 29 Jan)
(Minutes.)
I would propose to sand the dupliante
to the Royal Cominmin
copy of the mitting par
cvening day bale conflabilly,
The Camionin has not had
copy of the ember depitch, but the main
were included
to then confulatilly
Mr Fiddes
alome Got 10
After Wreakingts you, I have prepared
Aft. Telegram to HongKong..
Ja! 19/407
Hongkong.
Conclosure 1. Enclosure 2.
My Lord,
23 JUL 07
Government House,
Hongkong, 27th. June, 1907.
In reply to Your Lordship's
Circular Despatch of the 29th. of January asking for inform -
-ation on the subject of the operation of Shipping Rings or
Conferences, I have the honour to transmit copy of a
report by the Harbour Master and copy of a letter, with its
enclosures, from the Chairman of the Chamber of Commerce,
dealing with the question. It is to be observed that the
Chamber of Commerce has not answered the questions
appended to Your Lordship's Despatch.
As far as I have been able to
ascertain there is no one in this Colony connected with
Shipping who is not associated with some one of the
Conferences represented here.
The information in the report of
the Harbour Master and in the letter from the Chamber of
Commerce on the subject of the operation of the Conferences
THE RIGHT HONOURABLE
THE EARL OF ELGIN, K.G.,
drawn as it is from interested parties, must be received
with caution.
The attitude of the majority of
Merchants to the Conferences is friendly for the reason
that Merchants prefer, as a rule, fixed freights even
though they may tend to be high - to freights which
fluctuate in obedience to competition.
I would refer Your Lordship to
Sir Henry Blake's Confidential Despatch of the 27th. of
October, 1899, the information in which was evidently
obtained from some person not interested in a Conference.
In this connection I may mention
that I caused an enquiry to be addressed to the Chamber
of Commerce as to rates on similar freights to Hongkong
from London and Antwerp respectively, and that the reply
received was that the Chamber had no information as to
what rates obtain in London and Antwerp on cargo to Hong-
-kong. An enquiry as to rates of freight from Hongkong to
London and Antwerp elicited the reply of which I enclose
Fenclosure 3. Enclosure 4
I enclose copy of a report by the
Attorney-General on paragraph 4 of Your Lordship's Des-
Despatch under reply.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant,
Officer Administering the Govern-
Sonclosures.
27003 - 667
Harbour Department,
Hongkong, 18th. April, 1907.
I have the honour to report as follows as
the question of Shipping Rings and Conferences, an existing
this part of the World:-
The replies to the questions formulated by
he Royal Commission are as follows:-
(1). Are you aware of any combination, agreement,
or understanding, among Shipping Companies
carrying merchandise,
(a) between ports in the Colony under your
Government ?
Reply. ......No.
(b) between ports in the Colony under your
Government and other ports in the British
Yes. There is a Conference
of all regular lines trading
from Japan, Hongkong, and
China, to Great Britain and
Europe (hereinafter referred
to as the "London Conference"),
A list of these lines will be
found in the attached circu-
-lar (enclosure "A"). There
is also a Conference of three
lines trading between this
Colony and Australian Ports
the China Navigation Company,
the Eastern and Australian
.TORE,I^GA .df8¤‚prognof
as a...olo? es drogen ut honor end evad I
aldatze BA
vet be hurmat anodesup act of Bellver CAT
8e9n5net-00 £us anniЯ qalqqlab to reflasim
-:bito art to disq si
-:ayo!!o? Re me notab:0
dreinemannoidantdmoo .
seiraquod auteqilë prora
A netaxa vox STA .(I)
cariðnetenebre to
salbue.'orso ante-tan
quoy Rebou \no100 ert ri afrog ceewter{ (a)
↑ tract5700
TUOY TABLU grofað allt al atroy noowded (d)
da ing wit ni afrog nedto bus troiozavod
sorttro0 e al e
(get mort
bes ut*t*& fpero et
boristom rettantered) eɖo?* ("gonemetno robnoI” orit aa of
od Illw asti easy to tall A
-ronto badosata 9:43 ni berrot
{"A" ensofons) *ol-
send to apret trot a cafe et
al: noowded ontband asmif
edzot neenderA bora ymo.Coo
(Yrs.o0 mottentvak amt:10 ods
maliento A bre madesi erd .2.8
S.S. Company, and the North
German Lloyd Company.
(c) between ports in the Colony under your
Government and Foreign countries ?
Yes. The London Conference,
and a Conference of certain
lines trading regularly with
American Ports, chiefly New
York, (hereinafter referred
to as the "New York Confer-
-once"). A list of these
lines will be found in the
attached circular (enclosure
None of the above Conferences
compete with the Local
Companies for coast cargo.
There is no Conference or
other combination of Coasting
Steamers.
(2). To what extent,
have Shipping Com-
-binations tended to raise or maintain freights
or passenger rates? In particular, have they
tended to raise or maintain freights on goods
carried ?
(a).between ports in the Colony under your
Government ?
.No combinations, hence, no
such tendency.
(b) between ports in the Colony under your
Government and the United Kingdom or other parts
of the British Empire ?
(c) between ports in the Colony under your
Government and Foreign Countries ?
two sad b
negrob .2.2
.Unegrof bold nerab
quo rebno gnofoð sitt må adrog moewter (5)
↑ asitev on ngles I bna dnoortevod
(90fa7stno nobrol -
O CONSTA7:00 a bra
Mittw vitalemjot galbard asrli
vol vitaldo,adro¤ neobteniĀ
beyzetet netteriete:),XTOY
-*retno0 XTOY veK" ert on 03
ees) to dali A .("sono-
* et barot ad [Il geri!
erceolova) rsdotto baronðða
Bannerstroo evoda edit to ano
Iso I snt itt stegnos
.027ho taboo rot asinaqroD
to noteretroo on at : re 7
muldago) to coltauldroo meilto
.87800632
-elo0 quiggle over you "1 (tretxe bath. ↑ .(6)
athiart #istals: To satan od bebred enottentɗ...
vant ever raluoitrag ni ↑ 89:61 TORNAREA¶ to
aboog no adri kert ntadniør so seier of bobroð
? bot7169
Trong tobah połoð nið af afrog neewżeɗ. (s)
↑ Jndartevoð
@onofarottsuidmoo ok.
-yonebred fons
woy rebre vmoloð and nl edrog noowder (4)
edrog reddo to mobṛntX bøðinu erið bns tæer rievoð
? priqe dalin end to
won: Tobru ynofɔð sið ni adnog newded (0)
? eeldmod miezol bus norunovoð
Reply to (b) and (c).
Conferences are formed for
the purpose of maintaining
rates for passengers and
and are revised as
occasion requires to meet the
conditions of trade. This
purpose has been carried out
successfully, with the result
that freights are maintained
at a constant rate for all
Conference lines. I am inform-
-ed by the head of one of the
largest firms exporting cargo
from this Colony (unconnect-
-od with any shipping inter-
-est) that he considers these
Conferences a great benefit
to trade, so long as they
continue to treat shippers
with the justice and fairness
which has hitherto character-
-ized their dealings.
(3). Are you aware of any cases in which
open or tacit combination among Shipping Compani-
-es has driven off independent lines or reduced
competition by forcing such lines to adhere to a
Conference or Ring of shipowners or to a common
tariff? If so, please state the circumstances.
.....I am not aware of any
Reply....
instance of a line being
compelled to join a Confer-
-ence, but I remember a case
where a competing line
.(9) Bus (1) od vfqaf
rot bermot ate anapoot.io0
ontuted abwn to bao gun and
bas ats: 96664 707 astr
as baalvƏT SIB ba +9230
Josm of ee" luper mots8000
abent to ancl.ibmOD
avo bet su nosd unt Baoqtug
laeus eif¢ JIJIW #
bentaðninn a' » Rðişləri Jønd
if not adet dnadagoo s da
-rotel me I eenti poп6~»Ï:00
0.4 to Bno to baad með vf be-
Dynño qui¿Toqzs eurit JE93781
-Jo9ngoon. ) ynof30 eirit mont
-redni aniqqbile yas dtlw ha-
66Art Breblanoo si dede (deo-
Jiboned dasт3 & Boomers'...8:00
veilt as anol oa,eband of
arengira Jeert of enteroo
coortet bas oottant add dołw
-19DDAZARD OTISAJ Keri utol w
.agnifnəb qtadt besi-
robh mi sesso yna to STAWB VOX STå .(8)
-brewed antqqtë gnoms noltsmidros lost to nego
bobas no asali Jnebasqabri tto nevtib and ao-
* of atarina od aenil nova galonot vd noliidsqmoo
2000 & od so aterwoqide to gnig no sonereIn00
.RBonsterbrorio ent studs sameig、oa TI * TTITAJ
Vns to STAva don na I.
anted enil s to soustent
-1etno s nlol of belleqros
easɔ a redmonroy I tud
anti aniteqnoo & etuW *dord
brought an action against a
Conference line on account of
the Ring lowering rates
against them. This was the
famous case known as the
"Conspiracy" case the Mogul
8.5.Coy.v. McGregor Gow & Co.
(Glen Line), tried in Londen
about 1887, which was decided
in favour of the defendants.
(4). Are you aware of any instance of Bri-
-tish Shipping Companies carrying Foreign goods
at lower rates than British or Colonial goods,
and, if so, under what circumstances ?
Reply.....
(5). Have any Shipping Combinations or
Companies, to your knowledge, practised the grant-
-ing of rebates or deferred rebates to shippers ?
Have they otherwise granted preferences to ship-
-pers or classes of shippers? If so, please
state the circumstances and conditions under
which such rebates and preferences are granted.
.The attached circulars state
the details of the rebates
granted by the London and New
York Conferences. The Austra-
-lian Conference gives no
rebate or other preference.
No other rebates or prefer-
-ences, so far as I can dis-
-cover are granted.
(6). Has the policy of shipping Conferences
or Combinations or the effect of shipping Agree-
-ments or Undertakings tended to fetter trade
s Janisys noteos ns Jdquord
*:0010008 No anif sonaretno0
Bejar gaitewol gnif edit
o Aw al:T .Merit tentera
At Ba rwomi eaɛo Buomet
fugold erle 98ño "yourigano)"
.00 $ woƉ 070100M .v.vo0.8.8
obrod nt bett ,(onit meID)
bohloeb zaw doldu,"981 node
.ejnsbastab ent to worst ni
-in to sonstant vra to Biswa woy STA .(A)
aboon maisto¶ natvyvro Belɛswoob griqatre Kal3-
aboos Iatnofob to raising nart ærejat nawol ta
? ROMAJermotio tadw tebri ,on *i,brs
no enoidanidimob mutqqi:a vas ovañ .(8)
Jnana bra bsaltosnq,sqbalwond wot of,asinsGOD
↑ axeqtda of aejeder berieteb no betader to gni-
mutite od Beoneretanq batnary setwundido varit eval
oa "I f seqqida to essesio no 8700-
Tobu enolibros bus woonadenworto act stata
.better ers reo/16teteng bas rejøder fora rin‡dw
ejeja aralorto badiost¿s sîï...........
eeteder eit to atletab and
well has nobnoI and yd baźnary
-6738#A IT .88oneretroo xTOY
0 Bevin #one191400 n=lf-
..Sononetary resido no etador
-Tetenq to aejader 18:30 of
-alb so I ea 1st on ,289/10-
.boзnste 875 TeV00-
&0000тeixo) miqqiria to yoilog ent est .(8)
-seTTA Balqqide to dostte ord to anoldsmideod 10
ebond Yodje" od bobned ennidatseb U to etnon-
in the free choice of sea carriages, and, if so,
to what extent ?
Reply......
.......... So far as I can discover, no.
(7). Have Combinations of, or co-operation
by, Shipping companies been productive of any
beneficial results to British or Colonial trade
during recent years by securing stability of
rates or in any other way ?
Yes. Speaking generally, I
should say that these Con-
-ferences are undoubtedly
beneficial to the export
trade of the Colony. They
ensure stability of rates,
equal opportunities to all
classes of shippers, and
effectually preclude prefer-
-ential rates to any particul-
-ar nationality or class of
shipper. If they were declar-
-ed illegal, there would be
great fluctuation of rates,
and as, with the exception
of the P. & 0. Company's
Steamers, Ho British vessels
are subsidised, the probabil-
-ity is that the Foreign
subsidised lines would quick-
-ly run the British lines off
the trade. This, of course,
is but conjecture. Against
this argument is the fact
that, in addition to the
three Conference lines
108 14 (bre
↑ Jnetxe darw of
,"evosalb neo I as ts1 08......、、、、
поIJAт5q0-00 "D to anoltenidmoð evæï .(*)
ys to evitonborg need neinsquoo qniquide,W
obert IsinoloƆ to waiting of atfumer Istoftened
to qlllaða natruowa id arsoy daeos* writub
↑ vow rendo vns at to #BJAT
I, Vilanene? anidaeqë .ast.
-no eɛbit helt van bloode
Ibetdnobru ets Beon@TAI-
POUØLICIET 40 PNG oxbOL?
TOT mofo e to abans
(asdar to viḥildaða stUENO
Fin of asiṭiambroggo Is pe
bris ene qida to aeaanlo
-ratarq abuIoanq vllaudos?te
-Droidnog yna of Bødet fatšne-
To enalo o vallanoltan Yam
-18losb stew vat TI .regqlila
ed bio. exsdý Isnelli bom
asta” to noltantovi) 1967:
nattqsoxe BK♪ dolw、Rð boð
avnaqrob .04 . SNJ to
alcxeev raddbræ off BTORASJE
»Ildedorg sit,bselbladva ata
mmistot add særið et vii-
-Яalup blow aspil beatħledua
120 esnif Na}}}18 edð mun YI-
(samoo to ebxt Jobati zde
back- A .enirtoatron jud at
Jost add a dorura alt
add of nolibba ni,Jarid
Bembi onenetob serrit
forming the Australian Conference,
there is a fourth, Japanese, on
the same run, a subsidised line,
which maintain Conference rates,
though working in opposition to
the Conference.
I may state that the London Con-
-ference vessels never by any
possibility leave China full, but
are dependent upon the rice ports,
the Straits Settlements, and
India, for a large portion of
their cargo. The average amount
of cargo carried by these Confer-
-ance steamers from Japan, Hong-
-kong, and China, does not exceed
one-fifth of their carrying
capacity.
Foreign subsidised lines have undoubtedly
taken the place of British lines in some trades in connection
with this Colony. I may cite as an instance the trade between
Hongkong and Formosa. Previous to the China-Japan War, this
trade was entirely in the hands of the Douglas S. 8. Company.
Since the Japanese acquired Formosa, a Japanese subsidised line,
the Osaka Shosen Kaisha, have gradually but completely driven
the former line out of the trade.
he Honourable
The Colonial Secretary.
I have etc.,
(sd.) B. R. H. Taylor,
Harbour Master,&c.
„Coaststroj mallantovk sej ant mot
enerett,♫triot e a? øred
*ull keetbtedva s‚mA KOIAB Aid
(PZET Gonsretno) viistutan dolw
od not*inoggo ni mukihow signorid
.ODNOTATṛod and
to tofnod eft des otade YAHL I
EG KI MEVA? BI»R* Y coneret-
and IT skind eveci golfiɗterog
,8fxoq solm erit rows trabreqeb #18
‚atrenaIttuð attende erfo
to molhog ennal a tot,sibni
JUOS SPBreva est .09780 Tieds
-702000 east vd boi778o og7so to
-NCH,neqst mort areneda sonS-
boaux Jon Boob,antio bros
grivzeo ntend to Kitit-eno
* X-fangso
chodɗrohu erf Bon! I bealbiedne mierOT
moitos.ro ut esband spa nt aonit Ka}@ing to onig snit neded
randed #BAIJ Bit eonspekt na as etto yan I .mo100 RINS Dalw
KAV naqat-ani10 erit of awolver¶ .aaorto his mood"nof
• Sqr00 .8 .2 asfuoɑ grid to abnail end ni vistitno asw eba13
ent I beatblada eesnoqet a,naormo¶ bertipos eeensqet edt Bonia
novirb pieteiquoo Jud vllaubar) ovart,adatai neaorta salaɛ0 erit
ebant erit to duo enil temo? ent
(500 SVA: I
(24") B* ɣ* R* I9AJOL'
.008, ajmall "TONIAR
•Idewona“ demos? Iatmofob suT
Dear Sirs,
Peninsular and Oriental Steam Navigation Company.
182, Leadenhall Street,
London, 1st. April, 1907.
To those exporters from China, Hongkong and
Japan to Europe, or to ports via Europe, who, from the 1st. of
May, to the 31st. October next, may have found it to their
interest to confine their support and shipments, during that
period, to the Peninsular and Oriental Line, we shall be happy
to allow a rebate of five per cent. on the freight paid as per
Bill of Lading.
To those who, on the 30th. April, 1908,
may have found it to their interest to confine their support
and shipments during the whole twelve months to the said line,
we will allow a further five per cent. on freights contributed
up to 31st. October, 1907, and five per cent, on those from that
date to the 30th. April, 1908.
To those who, on the 31st. October, 1908,
may have found it to their interest to confine their support
and shipments during the previous eighteen months to the said
line, we will allow an additional five per cent. on freights
contributed during the six months ending 30th. April, 1908.
Until further notice, shipments made by the
*0.8.5.* *M.M.* *N.D.Lloyd's" "Austrian Lloyd's" "Navigazione
Generale Italiana" (Florio and Rubatino United Companies),
*East Asiatic Company of Copenhagen", "Russian East Asiatic
Steamship Company of St. Petersburg", "Nippon Yusen Kaisha", "Glen", "Shire", "Ben", "Mutual", "Shell", and "Hamburg-American"
Lines, and shipments by direct steamers to Black Sea ports,
will not invalidate claims for the above.
No Returns" will be payable on freight
contributed
• uieqroð molts;ive” macd8 [stneiro bne talvemini
,200x18 [afinshsed
.Poel,[inqA „tal,nobro.I
contributed by Rice and Oils from Japan, Silk and Treasure,
the produce of the Eastern Archipelago transhipped at Hongkong,
nor on any cargo the freight upon which may be arranged at a
"net" rate.
bra noxanof,anião noTÎ BISJTOČXe anodd of
,872 1890
to .tal ada mort,odw,egoud alv atroq od ro‚egoræ of nsqot
siert að di ba ot evad yan, txen isɗodoû .JalƐ odd od
Jaký metrub atrangida na dooqua stent enitnoo of deerełni
vogsd ad IIarin ew,exid fejrefv0 bus reivenine¶ and of,botror
rog as blaq armisnt edd no nao req evi` to adaɗet s wolla od
Tuibal to LIIE
Exporters applying for the returns, which
will be payable in London, on and after the 1st. January, 1908,
1st. July, 1908, and 1st. January, 1909, respectively, must
fill up and sign forms which can be obtained from the Agents.
Yours truly,
Thos. Sutherland,
Managing Director.
BORI,INGA „lic08 effe no ow waoɗt of
Froqqua tient exitnog od deersini "lend of Ji bano't stad van
enil biss esto od aktnom aviswi slow art galzub etnamqida bas
badidinimos ndrimisrt пo .jпeo "og Svi? tentaut a worls IIlw ow
Jand mort emont no .Jmso req evil bos "ORD,Teɗoto0 .fal of qu
.800‚¬¤Ã „ÇOƐ Nt of øish
8001 redot50 .JelƐ erit no,odw sort of
Joqque bed eat?nou of Jaetodat vierto 03 #1 barot evad yan
bisa ant od aridnor: nestrate avolvang art ent¬ub atnemqlie nes
at ieri no tres reg svit Ianottabs nɛ wolla filw ew,*:LI
„BORI‚¬qA „A‡08 antbne eritzom xie art saltub batuďłudnoo
oda "d abam ednomqtria,Botson reddunt £ldmU
enojasatvak* " ̧1byoll mainteиk” "a*bçoLI.Q.X" ", ..** .8.3.0°
,(astasgmo) bellal onitsduž bus oitofT) "anstlaði eistened
oldinA das nelceufi" ,"xarxxneqod to ynaqnod nitsiaa tas{*
Je to promo✪ qħifense 32
"Adelki neesY nooq!X","atuɗexeƒ÷¶
NSDÍTOMA-NWudmak" bro *IIer2*,*[autuk*
as&* ****
(edroq ana fosI¤ vt aterseda Joanib yď aðmarqise hus,aomiI
.avoda silt 107 ambalo etsbilavni tom IItw
$datent no sidayaq ad £Itw "arriutsA" of
(Similar Circulars are issued by all these Conference
Lines identical as to wording.)
badusintnos
meget hott allt bra solЯ vd hetuɗindroo
novano de baggtriansit opslagtfotå metnað ert to eoubong e4
o je bezwarto at veg dolde noqu tristent art 03760 ve no on
Dodwell and Company, Limited.
Steamers for New York.
Hongkong, 1st. May,
agruder edt 10* ariviggs #rs/OTEI
80P I ,Cisimet .dal vnd Tette bns no,nobnol mi eldsvag of Itw
deum,evijosqaun QODI,XIAVust del hnE 8021,vlut .al ..advent edd nort boniatɗo ed uso Natriw emot mie bne qu [IS
banfreddie .RONT
Tacostia UNİTAUSH
@ones100 seedt KIA YA
(.mnibrow of us Isoitrebt æerid
Dear Sirs,
To those exporters from China, Hongkong and
Japan to the United States of America by steamers (Shipments by
the Pacific Routes excepted) who, from the 1st. May, 1907, to
31st. October, 1907, may have found it to their interest to
confine their support and shipments, during that period, to
steamers loaded by us, we shall be happy to make an allowance
of five per cent on the freight paid as per Bill of Lading,
said allowance to be payable on the freight to terminal Port
only, all arbitrariea to points beyond that Port to be free
of allowance.
To those who, on the 30th. April, 1908,
support may have found it to their interest to confine they and ship-
-ments, during the whole twelve months to the said steamers
we will allow a further five per cent on freights contributed
up to 31st. October, 1907, and five per cent on those from that
date to the 30th. April, 1908.
To those who, on the 31st. October, 1908,
may have found it to their interest to confine their support
and shipments, during the previous eighteen months to the
said steaners, we will allow an additional five per cent on
freights contributed during the six months ending 30th. April,
Until further notice, shipments made by
steamers of the "Hamburg-Amerika Linie", Indra Line Ltd”. }
Messrs. Shewan, Tomes and Company, Anglo-American Oil Company,
Ltd., Dampfschiffs Rhederei "Union" Actien Gesellschaft, and
American and Oriental Line will not invalidate claims for the
.bettmix
% sqmod bas [ewbod
dчof wek 101 BTOMA932
Toef (YKK .Jai (nonok
,8718 7890
No allowance" will be payable on freight con- -tributed by Rice and Oils from Japan, Silk and Treasure, the produce of the Eastern Archipelago transhipped at Hongkong, nor on any cargo the freight upon which may be arranged at a "net"
Exporters applying for the allowance, which
bra quoclonok,antɗo moYŤ A7937Oqte enoɗd ot
v atrarqli(2) anscsete vď moltemå to aetat? beðinU end of negat
O roe! YAH .JHI ĐÃI mort,oriw (badgroze aetrof siztos¶ edI
od testetni siert od 31 bavot evad yam PO@I redot50 .JHIE
oð,botmeg dødd putrub,sinergise has #roqque "land omitnoo
sonawolla 'na else of vqqad ad are ow,au ve bebaol atemseta
(gribed to [II Tag aa biaq distant sɗd no dneo jeg evit to
7109 [animed of danient end no sidayaq ad of eonewolfa bisa
sert eď od dhof darið broyed stalog of eef7s7ðiðis [Is vino
.BONAWOIIs to
will be payable at port of shipment on and after the 1st.
January, 1908, 1st. July, 1908, and 1st. January, 1909,
respectively, must fill up and sign forms which can be obtained
from the Agents.
Yours faithfully,
Dodwell and Company, Ld.
8091 Dirga „deo% edt no Dráv Baúsið of
-atris bus pledd entinoo of daeretni sled of $1 bavot even yan
aremaste bina erit o edinos evIewt fodw sát gatruh,ednom-
beduciranoo etɗplent no jneɔ seg ovit meddwut a wolls 1[lw ew
dard mort exodd no taso "eq evit hes Foer Tedotoo .te of qu
BOOS,DIYɖA .AJOƐ #ns of stab
orfw saorie OT
300I redcda0 .JRIT ANd no
oqque larid enitno od Jeeretni zlert of 31 bauot evasi yem
erit of erit:o nastaņis evolvend orið sattub,atnomqtie bra
no Jпe og svit (arotribbs na wolls !It ow Stereoja bisa
FANGA NJOć gribne adtnom xia and antich beðuɗi¬žnoo etiķis¬I
vɗ aban adnemqida,solton tartan Ilamu
.."5JI snlI anbul,"einið sɣin9MA-Stuɗash" ant to stomp SİR
,Vraqnod [10 maotramA-O ENTA Vragmod bus admot
navodƐ .atnes)
#laɗoeffeseð neltok #motnU" tersbed atthroatqua..h‡I
end 70% eminfo etabÌCwvni Joh fllw en fætreino hms (AÐÈYOMA. uvoda
Monclosure 2.
Hongkong General Chamber of Commerce.
-200 3.5 bort no sidesq ad IIlw DONAWOIIAROB
ect *O*URRENT SOA XII#
SHOP of de hoqqiransrd onslegidotā пrotasi art to souborą
a ja bernaria ed
dolife mogu traient c ́i 0978O VNA NO
Hongkong, 30th. May, 1907.
comowoffs olid not małyiqqs stedTOUKE
PORI Viaurat .dal bua
.al and Tests has no anerept la o drog de sidayoq ad IItw
800I,VIA .*af BOOL
barbodo od neo dow Bertot anta bra qu 5127 days "CavbjoenaET
.bi, wungrad hnя NewhoⱭ
With reference to your letter No. 2276/1907
dated 27th. March enclosing copy of a despatch from the Right
Honourable the Secretary of State for the Colonies dealing with the Royal Commission appointed to enquire into the operation
of Shipping Rings or Conferences, I have now the honour to
inform you that this question has been carefully considered by
the Committee of this Chamber.
As most of the Members of the Committee
are however, more or less directly connected with Shipping
Companies it was considered advisable after discussion, to
invite the individual members of the Chamber to express an
opinion on the various points raised by the Secretary of State.
I would here mention that a letter very
similar to that of Lord Blgin was received direct from the
Secretary of the Royal Commission.
Two members of the Committee of the Chamber
of Commerce, one a merchant whose firm is largely interested in
both the import and export trade of China, and the other a
representative of one of the leading shipping firms, were ap-
-pointed to act as a Sub-Committee to prepare a statement and a
circular letter addressed to the Members of the Chamber,
These two documents, together with a copy
of the letter and series of questions received from the Secret-
-ary of the Royal Commission on Shipping Rings were circulated
to all the non-British members of the Hongkong General Chamber
of Commerce.
a. A. M. Thomson,
Colonial Secretary.
The same papers together with a copy of the Despatch
.80%ermo0 to Todmuo Letono anoжпоH
38M 1306 (30оdenоH
Despatch and questions received from the Secretary of State for
the Colonies were circulated to all the British members of the
Chamber.
A copy of the circular as issued to the
POBLESS .Ok nejtai nuoy os bonerater ILJIW
*if oft mort dodaqaab s to vyoo gataolono dona) .Iistä bodab
ridiw gullab aetnolod sij 101 978Je to v sú91962 əri, sidro::0
noits ego edi cini exlupas of seduloqqa nolasim:00 Isqof and
OJ TOKOH sitt won eved I ‚68onoretлod to agniя gatqqim to
qu batenienoo Viltetso nsed aad noltaeup aidt Jærið oy miotni
.*edano atris tu attire.00 edu
983Jinaoð aid to anadeel oils to Jeon Rå
aniquina djiw betoonnoo vidosrib asel to eTOM
Oj,пojaaƑostb totta eidsaivba berabtanou now ♪ Betneqno0
18vowod #IS
na Beerqxe of redimio edit to atsdriem Laubivibni srít etivni
.ejata to *18397092 Sk) yd boelat atnioq avoirøv ed¿ no notato
Cisy 193jal s jaid moldnem erall blow I
ant mort Joerib beviǝvet nav nizi broj to Jadid of Talimia
.notastro:00 Layod brid to vrædero62
Todusid eft to settiamo erit to atuomon owl
ni bejaeretni ylogral ai mitt esonw ‡nsilorom a 8:0 ,001Ammo) to
a texto ený bus,antno to ebent droqxe bus droqmt sit dood
*46 97OW Bæti) antqqhie gntbesi end to smo to evidsta8807q87
s bus nemjate a eisqong of aettirmoƉ-dub a za dos of batnioq-
redmaño edit to ereɗmoм edt of boaaoïbbe vetteÍ YAINGuto
vqoo a dółw reridsgod padnemwɔob owt seerfT
-Jeroen siit mort bevlenen anoljasup to aeltea bus rattal end to
be:sluotto snow agniЯ gaiqqtiz no xotezimod Isyof add to Tia-
Tadmado Istoned gnodynol ont lo areḍasn dalji18-non end Ils of
nid to ygoo a riółw zertagoj ateqeq amsa efT
.@oremmo to
British Members is enclosed herewith.
The members were requested to reply in
detail to the various question raised, or to make such comments
on the question of Shipping Conferences as seemed to them desir-
In order that you may fully understand the
composition of the Chamber I beg to enclose a return from which
you will note that the total membership of the Chamber amounts
to 144 of whom 88 are British.
As will be seen the Chamber includes a
number of individuals or firms such as Architects, Professional
Insurance and Industrial Companies, retail dealers and
others who have little or no direct interest in the matter
under discussion.
In fact it may be said that of the 144
members of the Chamber only some 90 are qualified to express
an opinion on the subject of Shipping Conferences.
The result of the plebicite cannot be taken
as altogether satisfactory as although a second circular was
sent asking those firms who were interested in the question to
send in their replies only 32 did so, of whom 18 were British.
Before proceeding to analyse the replies
I would state that the existence of Shipping Conferences is the
rule, in the overseas trade between China and most of the
countries with whom direct communication is maintained.
The trade from America via the Pacific to
China and from China to Europe and America via the Canal is
almost entirely controlled by Conferences in which all, or most,
of the Steamship lines engaged in the trade are associated.
110amodt .M .A.1
.VIAJ6T092 Isinolo
not state to у18j87082 add mort bevisser anoltɛeup bas dotsqaeɗ
edit to aredram AuldİTS SUJ (Ia of betaluotto stew aetnolod srit
odd of bewaal es tsivorto add to yqoo A
.Attvered beaofone at areɗmeM ¡atti¬A
ni yiyer of betasuper eтew aтedram erT
atno mos dove exam of to,boaier nottseup evoltav sɗt of Ikateb wilach merit of bsxana as ɛgoneretnoð galgjinë to nok‡koup sríð no
art bustetebnu vllut yam woy Janj tebro MI
fotdw mort aчujer a 9aolone of geɗ I raɗmaid e:it to noistaoqmoo atauons Todasɗ0 end to qteredmem fatoð sit Jædt ston ££tw not
att ers 38 gode to bad of
Baabuloni Tedma:ið eit ness ed IIte 8A
fenolasetor¶‚atoetidonλ aa dove acritt no afsskivtbui to reɗown
bus #siseb Ilster,8ainsqmoƉ Istrðavbol bus eowywani
19jtar and ni jesretni Joerib on to misiti eveď ońw aradjo
.notearoalb reb
AbI eat to tarit bine ed yon ti dost ni
aa8rqxe of beitilsup 815 09 emon vino "redmeɗo add to areḍnem
.aeoneteÌnoð gntqqinƐ to Joetdua erit no nolaiqo as
noxud ad domumo etioideig sur 30 Juget exT
Baw 18[uotio bпosea & duontis as votostattan redtegojía es
oj noljasup eft ni betaetejat eTSW QW BImit esort guixas Jasa
atci erew al moliw to、08 nib Sẽ vino sstiger ziedt ni brez asilqar ort sexians of anibasɔong enote¤
erts at asonetstno) g.ilqgina to sonojeixe edt Jait etaja bluow I
eɗt to Jaom bila antri neewieɗ abert AS987evo sde ni
.benietniam al noitsoinum1oo toerib moriw rista settimuos
of altlost ant air gotISMÅ mort eban3 ONT
al Isnað ed? siv sotrsmå bas oyo¬g of snin) mort bus satdo J808 10 Ila Hotdw ni aeonerethod và bellostnoo vistijne jaorila
.borsioonas 915 #baît ent ni begsyns zenti qiiacss38 srið to
These Conferences make deferred rebates at regular intervals to
those firms who have found it convenient to confine their ship-
-ments to the association during a fixed period.
Certain classes of cargo however such as
rice from Japan and Sugar from the Philippines are not included
in these agreements. There are also other goods which can be
shipped by outside vessels without invalidating claims to Con-
-ference rebates; but it must be taken that on those trade
routes where a Shipping Conference exists the bulk of the
business is carried by Conference Steamers.
Even where actual Conferences do not exist
it has been found desirable in several instances to make local
agreement in order to ensure frequent and regular sailings,
without the cut-throat competition which so often arises if the
various lines engaged in one trade are working absolutely in-
-dependently of each other.
This is exemplified by the agreements under
which certain British and Chinese Companies engaged in the
river, and coasting trade of China pool their earnings on
certain routes, the rates of freight however fluctuating with
the supply of, and demand for, tonnage, or by the amount of
competition encountered from other lines.
Two British and a German line also work an
agreement on the China to Australian route, but here again
rates fluctuate in the same manner as on the China Coast,
These Conferences are not all governed on
the same principle, but as a rule it amounts to this that cer-
-tain lines on any one route are associated and while they may
limit or entirely exclude outside tonnage from taking the
berth, on the other hand they undertake to provide ample ton-
sufficient to meet all reasonable requirements and
ordinary fluctuations of demand for Steamers at more or less
fixed and unchanging rates of freight.
Reverting to the evidence received from
of aleviedai naluger ja estøder berreteb exem æsonereturoð skeift →qbka ziada entiuos of Jasinevnoo Ji bano? evad offw errit seunt .bolroq bexit s gatub noitaiocuas edð of atner-
as dowe Tovewod ogt80 to 8088alo niat :60
bebuloni ton ens sentqqilis¶ sri) mort tageā bus mayst mort moit
ed no rols/ aboog tento oals ars shant ·Bjnsmeoïga eandé mi -no oj amisio gnitabilærul tuodtią alezasv sálajuo zd beqqine
ebant exort no tady ustað að dauer Jà Jud juajade" sonSTS1- ent to us ont etaixe eomenetnoð gaiqqide a otoñw Bedwor
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Insof sɗart of agonatuni Istevee nt eiderleeb buot need ear ji ,agnilise Tafuget bos Juoupert etwane od tebro mi treme 4738 suit ti asalta netto os lotiw noijtsqmoɔ decuit-tuo sit juodsiw
-ni glasuioada gotdrow ets aber‡ eno ni boysgute esnil avottay
.redto done to giźnebneq3b-
Tebnu aðnemeergs and yď bet?ilquexe si alsfr
edit ni begagna asinsqrod saanino bus Maldita ntasies dotrw no egninïae visit Ioog antɗo to oband gnitesco bas,10VİT 2ði, yalimuboult revewod Jagiert to sets out (80d507 ataJ790
to davome sit vd no 1
Tot brameb bas sgenoot
to viqqua erit
.eents reddo mort betetasoone noftijsquos
na dhow ozle enll usated a bur dalilTE OWT
nings grei Jud,Boot meiisitavÅ of suiïïð add no regeerga .reso antno sat no as Islam emsa dit al edæutouit aster
no berovog Is Jon era aeonetelnod saeft
-Too farið aldt os sinuoma Ji elm a as Jud、elyioning sruse edt ven vedt eltɗfw bra bejaloozes 976 atuor ano vis no zenti mtaj❤
eds quixat mort ezannot ebiazuo ebuloxs yletitne no dimi 5. -not algris abivong of exstrebnu yed♪ baad Tedjo eft no,ätreď
bas atuem iuper eldsnoeber Ile teem of Jnekolttuu
SAMI TO 970om Ja atembejë tot bnaneb to anoldBudowl? ViaNibro
glent to estar guignations has bexit mort bevt906% soxabive erið oð gættevof
those firms who have replied to the circular from the Committee,
it appears that of the British Firme who have responded not
only has no question been raised against the various Shipping
Conferences in existence but in many cases unqualified approval
is expressed on the subject.
Both from a Merchant's and Ship-owner's
point of view, (and as will be seen some firms represent both
interests) it is claimed that trade has benefitted by the
Conferences owing to the manner in which they have been carried
out. Ample tonnage to meet all requirements of trade, level
and reasonable rates, regular service, better handling of goods
and few losses. One of the replies is qualified by the remark
that the Conference is beneficial to merchants as well as
Shipping Agents "so long as there are no illicit rebates and
returns made" but there has been no suggestion that such illi-
-cit returns have been paid.
Another answer is to the effect that
shipping combinations have not tended to fetter traders but on
the contrary secure them equal facilities for competing on fair
and level terms.
It is only when we come to the non-British
firms that any dissentient voice is raised against the existence
of Shipping Conferences. Of these, two come from German firms
and one from a Japanese firm.
It appears desirable to quote these in full
"The firm deals with the Conference Lines
"in the matter of receiving and shipping cargo
"and that the Conference maintains a uniform
*rate of freight. The Conference Lines grant
"rebates to shippers who confine the business to
"their lines. We are of opinion rates would be
"more favourable to shippers if free competition
"existed among the Shipping Companies".
,0933vvio sit sort refuorlo all of bellqst svad ode art?
con bebrogeot evad odw arml¤ del)ing add to Jadt arsOTI JI anteqinë avoltøv adt Jentage besta” need noitesup on aar vino Iavorąga beiti Isupnu 89880 vam ni tud aonetatxe ni aeoneretno0
.tooldua edd no bearerqxs el
a'Ienwo-qinë bus e'tnadorolt a mort stof
died dresorger anit sviða nega od lily as bis) waiv to Juloq edt yď bastitened ear short tady beminio ai si (adasteznt beltteo need evad vol? dot. at 19:18c eft of griwo 88onerožn100 lavol ObarJ o etnemeniuper Ila Jean of egaenot eimsátuo above to gnilbusi retted,soivnee 1sluyor,#8jst elúsnöaset bus Nisr87 add yď bettiisup al esliqen sila to en✪ .asaaol vet bas Be llew as aðnariotem of Istɔltersd at soneretno0 edt teds bra aetsuen fioi!!! on ens stedt en grof oa" etnog★ qutqqtu -110l dove jsdt motjaeque on need car exerit Jud "obzz, afrikjet
.blaq need evad antuder ftom tai tostlts of od at Towane Teritoná
no dud arabrij Tøjtel of bebnej som svæði вnoitantómos auiqqida itsi no entreqroo 10% astillos? Laupe marit surosa viajnos sɗt
.arted Isvel bus
alt-on eft oJ
noo ow neɗw zino si I
spneteixe end deniaze beatst zi eolov Jasbjq9ualb yos tadt amilt AMÌÌ NAITIOÐ MOTT emos ow sasid 10 .8sonsretno) aniqqid? Yo
./mil eaonaqet a mort eno bue
llut at eaedƒ etoup of sidanlash atasuge JI asnil sone"etnoð edź diłw aleb mit eHT" oznao zatqqida bus galvisser to obtaw edt at” protinu s entotniso soneretneð sið færit bns" Jasıp senil soneratno) saf „tijlent to ajut* ot seenisud erit enitnoo orfw #toyqlifa of esJBÚST" oo bluow ester noinigo 30 ets el „eenki Tieɗt" noišljegros eert îi ereqqt:fe of eldawovat atom"
."esinsqmod gniqqidƐ sild groma bedetxe"
"Believe that the results attained by the
*Shipping rings are highly satisfactory to ship-
-owners but from the Merchant's point of view as
*Importers and Exporters seriously doubt whether
the operations of the Conferences are giving
"satisfaction to all parties interested and are
*Inclined to think that the development of trade
"would be healthier and more profitable without
"such Shipping combinations",
"Are of opinion that the Shipping Rings are
"quite against them being beneficial only to
*those Companies who monopolise the high rate of
"freight*.
With regard to the above statements I would
point out that other Pirms, British, Continental and Asiatic
engaged in precisely the same branches of Import and Export
trade as those three firms have either expressed no disapproval
of shipping Conference as carried out in the Eastern Trade, or
in some instances have strongly approved of the system. To
quote a few instances one merchant firm writes
"Fixed rates... proferable to the uncertain-
"ty of 20 years ago*. *Treights at a payable
"level not oppressive to any one"
Another large exporter of low grade goods
*So long as they act with reason our opinion
*is that in Shipping, a "Combine" is in the Long
"run better for us than a cut-throat competition
"which can burst at any moment".
An American Shipping Representative writes
*I think the combinations have gone a long
se vd bontatta ativaer suit jaid evalIs8"
-15 03 Tiodostaijae virgin ens egntı galqylä" #1 wely to aloq a'tnsdorel and mort and stacv✪- roditesh tdwoh vlevoirea aretroqxã bre aratroqmi* anivia ans aeonetetnoð eɗt to anottarego add* ets bra bejastefnt esttxaq íla od moitostaidea" ebart to nongolevab ent turit dabit of beatIort"
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."anottoridhoo quiquide dowɑ*
ons agnt¶ gaiqatda en) tsuð noluiqgo to -*A*
or vino Imioitoned galed mert Janisgs sting" To aten digiti ant oatlogonom oifw asinsqrrod ea [[*
birow I atitsmejaja svode end of brazen A
ɔiosisa bus Istnenitno0,falsize,amit varito sant duo Jatog to bus troqni to asionsrd emsa sil viðaiseng at bøgerne favoremath on beesenqxs von‡le evad erit ceud encrit as abent 10,ABATT Misjaal end ni juo bel¬rzo es monérətnoß zulaqdila to of .mejaya end to bavo qqa pignoris evan agonstand emot
BeilTw wilt duelloren en aeonstant wet a stoup
-AtAJTSOM: art of aidsrotorą ...aatan bexit"
eidstaq a ze atrizter¶" ogs aтsay 06 to y*-*
"arto vns of evisa91qqo Jon Ieva{*
aboog abang wol to tOSTOXX6 BYïal TontonA
*way in fixing freight to British Lines that
"would otherwise go to other flags".
"I am unbiassed in these opinions as none
"of the lines represented by me are members of any
"combination".
In conclusion I think it may be safely
assumed that had any of the numerous Shipping Conferences, which
are interested in the Far Eastern trade acted in an arbitrary
manner or in any way handicapped or checked the free development
of trade the Committee would have received far more protest
than those contained in the above three extracts against a
system which has for many years been almost universal in the
varicus branches of shipping trade centering in this Colony.
The fact that so few firms have even
replied to the circular appears to this Committee to point
clearly to the fact that no serious complaint can be raised
against the working of the Conferences in this part of the
I have etc.,
(Sd.) E. A. Hewett, Chairman.
noinigo mo monsen d‡iw dos yedi na gnof o2"
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abjitw sviðsánezenqef griqqinë naɔirsmā nā
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80% AS Gnoint、 ezent xi beeestd.u ms I"
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(69лetetiroɔ gniqqinë aworowwm erit to yna bart født bemaas
ZIETJĺŠīs ns ai beton absit mietest *a* adt ni bejasrajn) ers Jongofsveb sayt edt bexoerio no beqquoiensi yaw yns nì TO TRANSM Jatong Tom at bevisoon ever bluow esttirol and absit to
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neve svær arrit wet oa text dost adt
Jalog of settiamo airit of ars9qQ8 18ĺvorio end of beiiqor bezis” ed nsɔ Jaisiqmoo auoires on "at dosl end of virselo s. 10 Jinq alat ni esoketelno) end to gaianow eft danisge
,.ode eværi I
(JJewOH .A .I (.62) .NAMİANJ
Enclosure 3.
Hongkong General Chamber of Commerce.
Hongkong, 18th. June, 1907.
I have to acknowledge receipt of your
letter of 15th. instant (No. 2276/1907), and in reply beg to
state that the regular lines trading between this Colony and
London and Antwerp quote the same rates of freight on similar
goods to both ports.
The same system applies in Shanghai, as
shewn by the enclosed Freight Report taken from the "North
China Herald" of the 7th. instant. I may mention that the
Northern Continental Ports referred to therein include Havre,
Bremen, Antwerp and Hamburg.
your requirements.
I trust the above information will meet
The Honourable
The Colonial Secretary,
Dear Sir,
Your obedient servant,
(Sd.) E. A. Hewett,
Chairman.
Endlosure 4.
.eonermod to redmaid (stened anoxano
enum .d381
100% to tqinoor esbalwondoa of evan I
OJ 997 VIGST ni hus,(roer)arss .ok) instant .deal to tajjai
bus ymofob aliit noewted pribanj aonii talımer aru terk etnja sfinte no trylert to rejst sasa grit etoup qrowtпA br. пobnod
.atroq dood of aboog
Ladeneda ni aelicgs mejaya omaa erT
Hero" and mort maxed troqed tiniert basolone erit về mwade
erit tart noitner vam I .dmotani .dar edt to "histoĦ AMINO
(etvoll abrJoci ntoredt of bermat-7 8770¶ Istueritnod medtrol
.gudriah bas qrewinA ПAMBTE
Hon. Colonial Secretary,
1. No local laws or regulations have been
passed for the purpose or with the effect of regulating any
Rings or Conferences or in any way affecting such combinations
or the granting of rebates or discriminations to shippers.
2. There do not appear to exist in the
Colony any Shipping Rings, rebates or discriminations which
are illegal or prohibited or void as against public policy,
or such as must be registered in order to become legal.
There are no local decisions bearing
on the subjects referred to.
(sd.) X. H. J. Gompertz.
fear: Iftw noitamotni svoda eid tar I
.atromet iuper toy
,712 158¶rs I
JAYTEĽ netbado TOY
JJowok .A. (.52)
aidotwoman
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ntrolimus to reel oude by No one
Toma nitoe te
ng att kan bones
Yna ei no aconsrettro0 me
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004 06 Jr ob ero
chong trong
ans un mior to hacked lang na teme i en
stro Road Irosi
sebnu ni beredador es M. BA 194
kad beretur 7 Rjoshua në
The Suretary
15 August 1907.
Royal Commission on Shipping Rings
Ms. Smith 12/8/07
Mr Miblek
Mr. Just.
Mr. Antrobus.
Mr. Coa.
Mr. Lucas.
* N 14 75.
Sir F. Hopwood.
Mr. Churchill.
The Earl of Elgin.
Aufl. Ench. in 27003)
With reprence to the
recent correspondence relative to
the collection of Evidence, for the
Rospel Commission on Shipping
Rings, I am
am dracted by the Part
of Elgin to transmit to you to be lad before the Royal Commission
the Enclosed copy of a report by the Nation Master of
Kong and awty of a letter, with
Enclosures; from the Charman
of the HongKong Chamber of
Commerce.
The Secretary
Royal born on Ripping King's
12/8/67 Mr. Niblete
Confidential
15 August 1907.
I am directed by the
Earl of Elgon to transmit to
ron for the confidential nifernsation of the Royal Comm. on Stuffing Rings, a copy of the despatch from for the fovener of Hongthong
with which the documents
transmetted in the letter from
this Dep! of ever date herewith.
were received
Fox Spa Kong
DRAFT. Telegram Sonner Hong Kong
Br. South 19/8/07
Mr. Just.
Mr. Antrobus.
Mr. Cox.
Mr. Lucas.
Sir F. Hopwood.
Mr. Churchill.
The Earl of Elgin.
A1749. P. 345pm
ryacolite Telegraph whether
antredent
any objection to
finblication of your despatisti
homelier
173 27 June shipping rings
omitting paragraph tree
Governor No.
May 17/4
(Subject.)
DESPATCH.
29 JUL 07
Amalgamation of posts of And Lupe Police
Police regale New Territory
ast previous Paper.
3/29/149/01
WB & £ (75)—50067–35030-11-0
Next subsequent Paper
recommend
style of District Officer with salary as
hr Fiddes
(Minutes.)
speeglid
afraid that I commit
the starting salary paker referred
of in para: 4 until
to deal with it
& complex mattor.
I have more
Very difficulty
of therefore this proposal is
I think it slid ta
the peak stiling
rate of pa math assigned t-
post must h.
present pending decision the despatch spot. (Being confedential it shared not have han referred 6.)
ghis not a
the poet in
not likely to to held by
sterling salan Officer for some time.
The proposals involvr.
g salay.
No. 174.
Hongkong.
P 23 JUL 07
Government House,
Hongkong, 27th. June, 1907.
nat Jutivo
so long as Police
performed
be open to offices affmited a
Police Probationers, otheria wh
shall be cutting out-
posti per to such offices
y leaving
practically no
possibility
I promotion.
Ийте Кисто
My Lord,
As Your Lordship is no doubt
aware the Assistant Superintendent of Police in the New
Territories has since the occupation of the latter dis-
-charged the duties of Police Magistrate there receiving
as remuneration for this additional work the sum of
$1,200 per annum.
Although at first sight it might
seem undesirable that one and the same Officer should dis-
-charge the duties of these two posts, yet in actual
practice the amalgamation has worked smoothly and well and
the arrangement has the advantage of being economical.
There is not at present, nor is
there likely to be in the near future, enough work to
Occupy the time of two different Officers for these two
posts, and neither of them can be combined with the duties
of the only other European Officer resident in the New
THE RIGHT HONOURABLE
THE EARL OF ELGIN,
&C - • **
Territories
Territories viz.:- the Assistant Land Officer at Tai Po .
whose time is fully occupied.
For 27073 circulating sefam
In these circumstances I have to
recommend that the posts of Assistant Superintendent of
Police and Police Magistrate in the New Territories be
amalgamated under the style of District Officer with a
salary of $3,600 rising to $4,200 by $300 triennially
(or £420 to £540 by £40 triennially or £540 to £630 if
Your Lordship approves the recommendations in my Confident-
-ial Despatch of even date) with a Conveyance Allowance of
$384 per annum.
The existing arrangement is open
to the objection that the Officer receives the lesser
remuneration for the more responsible half of his duties
and that when absent on leave he receives no part of the
allowance allocated to the Police Magistrate. He is thus
placed in a very inferior position to other Officers of
less standing in the Service and in the enjoyment of less
salary while serving in the Colony.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant, +
Officer Administering the Govern-
HONG KONG
Gov/27004
Aug 1907
Hang Kung
No 143 Si 7. D. Lugard
MINUTE. Mr. Stable 618 Mr. Fiddes.
Mr. Just.
Mr. Antrobus.
Mr. Cox.
Mr. Lucas.
Sir F. Hopwood.
Mr. Churchill,
I have the honour to ack the re-
ceipt of Mr Map's desp No 174 of
June 27th and to inform you that I
approve the proposal to amalgamate
the posts of Asst Supt of Police
and Police Magistrate in the New
Territories under the title of
District Officer.
2 Pending a decision
The Earl of Elgin.
on the general question dealt with iy
the deep to which Mr May refers in
para 4 of the desp under acknowled-
gment, the sterling salary of the
new appointment should be taken as
£420 to £540 by £40 triennially, the
dollar salary being $3,600 to $4200
by $300 triennially.
3 It must be understood that, so
long as the District Officer continues
to perform the duties of Asst
Supt of Police, officers who
have entered the service as
Police Probationers will be
eligible for appointment t
thë afalgama Dod
Governor.
by Soupe
1907 7 Jue
Last previous Paper.
HONG KONG
No. 27073
(Subject.)
DESPATCH.
C C 27073
9 29 JUL 07
Sterling Salaries of basets
Submits proposals for dealing
16515, with prextion of
30 So S. S. Cauf 30 Aug.
Cluod comp Log Aug.
3 17′ 13 & L (73) ~02687~~25000-11-6
Next subsequent Paper
For 731591
Mr Pidden
(Minutes.)
Mr May has not clearly understood the sterling salary question. By introducing the sterling scheme it
was intended to improve the position of officers who were
then drawing single exchange compensation. The sterling salary rates are accordingly higher than the doflar sal-
aries with single compensation. The position was, however,
complicated by the grant, while the sterling scheme was
under discussion, of double exchange compensation which
had the effect of making the dollar salaries higher, in
many cases, than the sterling salaries. It was never
intended to lay down that the sterling salaries should
be equal to these enhanced dollar salaries. The latter were
intended to give an increase- perhaps more in many cases
than was strictly necessary- to the officers then in the
service who had undoubtedly sufføred from the low exchange
of those times: the sterling salaries were primarily for
new comers and were intended to avoid to a great extent
the disadvantages incident to the fluctuating dollar.
In considering the question of sterling salaries it is
therefore necessary to put on one side altogether any
comparison with dollar salaries and to consider solely
the salaries paid afford adequate remuneration for the work
perfpemed. Mr May does not attempt to show that they do not a
and even if he did, the decision to pay salaries at 2/-
to the dollar, arrived at since this despatch was written,
would afford sufficient ground for refusing a further increase That decision has given everybody an increase which at present rates is something between 9 and 12% on his salary
Sir M. Nathan told me that he considered that this was a satisfactory solution and that the officers of the service would have no further ground of complaint. Moreover the decision has increased Er the liabilities of the Govt by an annual sum estimated at about sixty thousand dollars and in view of the probable reduction of revenue which will result from anti-opium measures I do not see how the Govt can afford to incur any further expense at present. Turning to some special points in this desp, I would point out (a) Para 6. The comparative cost of living in Hong Kong and the Straits is a matter on which no clear understanding has ever been reached,. Straits and F.M.S officers hotly dispute the assertion that living in Hong Kong is more expensive and mostly say that they would be glad to go to
HongKong on a lower salary. Para 4 of Sir M. Nathan's de sp in 15519/06 shews that he considers that living in Hong Kong
is in most respects cheaper than in ther colonies. Moreover, even if the salaries are less, there are compen- sating advantages in a more favourable climate and in the opportunities of getting a change to a cooler place without the cost of coming to Europe- by going to Japan or Weihaiwei This is a point on which Straits officers have laid great stress in conversation with me.
The comparison of prospects is not properly carried out. The £1500 post to which MrMay refers is that of R.C at Penang,
a position which is said to be exceedingly costly to keep up, owing to the necessary entertaining. Certainly however there are more highly paid posts in the Straits than in Hongkong but the Straits and F.M.S must be taken together and the result then is very different. Omitting staff posts,
there are in this combined service only 28 posts
with salaries that rise over £800 in a service of
$149 i.e under 18% against 20% in Hong Kong.
(N.B. I think these figures are unduly favourable to
Mr May as for simplicity I have not left out the
posts, such as the higher police posts which will
probably not be held by cadet officers in future)
As to the last words of this paragraph, granting
which I do not) that the lowest cadets are as a
rule appreciably worse than the highest, why should
Hong Kong have all the best men? If there was any dan-
ger of this happening we should have to take steps
as the I.0 have done, to prevent all the best men
getting inte one province. The Straits and F.M.S
need quite as good men as Hong Kong.
Moreover, Mr May forgets that promotion has been
exceptionally rapid in HongKong. Mr Thomson was
Treasurer after only 11 years service, Mr May himself
was Capt Supt of Police after 12, and Mr Messer was
acting as Treasurer after three!
(b) Para 9. These anomalies are a result of having
two different scales in existence at one time. Officer
on one scale are frequently at a disadvantage com-
pared with officers on another, but that is no reasàn
for trying to give everybody the benefit of both
I submit that the answer to this despatch should be
that the S of S cis not prepared to assent to any
increase of sterling salaries, especially in view of
the recent improvement of the position of Govt offices
which has been effected by the decision to pay sal-
aries at 2/-,. If, however, you think that any good gaz grievance has been revealed, I should like to submit
reclassification
seme proposals for a reorganisation as there are a
number of reasons against the adoption of Mr May's rough and ready solution e.g a cadet on first obtaining a substantive post would receive
£540 a year, against 420 in Straits and £360 in F.M.S.
(N.B Hong Kong will ignore the classification
introduced by desp on 2398/01-2)
ONFIDENTIA L.
Hongkong.
29 JUL 07
Government House,
Hongkong, 27th, June, 1907.
I aper with Mr Hubs Ford
as at A this mainti
I have Spation to Da
M. Statts
Draft for
considuation
My Lord,
189801.2.
Referring to Mr. Chamberlain's
Despatch No. 171 of the 13th. June, 1902, and previous
correspondence on the subject of the introduction of
Sterling Salaries into the Civil Service of Hongkong, I
have the honour to submit for Your Lordship's favourable
consideration certain recommendations for the revision of
the Sterling Salaries attached to Cadet Appointments, a
matter which Sir Matthew Nathan had for some time under
consideration but was prevented by his somewhat sudden
departure from dealing with.
The scheme of Sterling Salaries
prepared in this Colony and forwarded in Sir Henry Blake's
Confidential Despatch of the 11th. December, 1901, was, in
"accordance with instructions from the Colonial Office,
based upon and was slightly higher than the then existing
scheme of Dollar Salaries, which were paid half at the
THE RIGHT HONOURABLE
THE EARL OF ELGIN, K.G.,
rate of 3 shillings to the dollar and half at the rate of
the day.
From the 1st. January, 1902,
double Exchange Compensation, or the payment of the whole
salary at the rate of 3 shillings to the dollar, was grant-
-ed, with the result that the salaries of European Officers
paid in Silver were very materially increased by being
virtually placed upon a Sterling basis.
It might have been expected that
a corresponding addition would be made to the Sterling
Salaries suggested by Sir Henry Blake in order to bring
them into line with the double compensation salaries, but,
so far from this being the case, half of the total number
of the finally approved salaries for Cadet Appointments
were reduced below the level of the old single compensa-
tion salaries, as may be seen from the attached table of
Cadet Appointments, in which are set cut:-
The Dollar Salaries,
Their Sterling value at the close of 1901.
Their present Sterling equivalent.
The existing Sterling Salaries.
It would appear from the 7th.
paragraph
696 9 paragraph of Mr. Chamberlain's Despatch No. 171 of the
13th. June, 1902, that the reason for this reduction in the
salaries attached to Cadet Appointments, is to be found in
the fact that the introduction of the new scheme afforded
a favourable opportunity for approximating the Hongkong
salaries to those paid in the Straits Settlements, which