The San Francisco call., 1906-07-02
BRITISH FIGURE
IN DIG GRAF I
Unsavory Steal Allowed
in Ceylon Pearl
Fisheries:
Scandal Kept Quiet but
the Facts Leak Out
to the Public.
SPECIAL DISPATCH TO THE CALL.


SPECIAL DISPATCH TO THE CALL
LONDON, July According TO
report cabled from New York a few
days ago Bishop Potter attributed the
assumed superiority of British politi-
cal methods over those in vogue in
America 10 the fact that Englishmen
washed their dirty linen in private.
while Americans performed that oper-
alton in public. That there is good
ground for this view is afforded by
the recent leasing of the Ceylon pearl
fisheries to a private syndicate on
terms which make 1t certain that the
capitalists will reap an enormous
profit from the transaction, while the
colony will lose proportionately large
revenue.
Had such a disgraceful deal been
sanctioned by any department of the
Federal Government at Washin gton IL
would have caused prodigious scan
1 dal. The whole matter would have
been thrashed out in the newspapers,
and the officials responsible for the
reckless sacrifice of public interests
would have been exposed in fashion
that would have put quietus on their
political careers for some time to
come. anyhow.
But here the matter attracts hardly
any notice, although the facts may
be ascertained by anybody who peruses
/ the Blue Book" which has been is
sued on the subject No Official loses
/ his job. Mr.. Lyttelton, who, as the late
/ Colonial Secretary, is chiefly respon-
I sible for making such a bad bargain
for the colony, is confidently seeking
reelection TO Parliament, and will no
/ doubt be returned the first time a
vacancy occurs in Tory stronghold.
HELD AS STATE MONOPOLY.
The Ceylon pearl fisheries have hith-
| erto been state monopoly, worked for
1 the public benefit, under official super
vision, by divers, whose remuneration
was a share of the oysters lifted. IN
/ til recently the results were variable.
There were fat and lean years, and
sometimes an entire failure of the fish
cry. From 1892 to 1902 an abnormally
long succession of barren seasons was
experienced, and in the latter year Sir
j. West Ridgway. at that time Gov
ernor OF Ceylon. engaged the services
OF couple of experts, who, aftes max
ing thorough investigation. reported
that If proper methods Of oyster cul-
ture were adopted the productiveness
of the fisheries, could be vastly in
| creased and barren years avoided
Some steps were taken in that direc-
! tion and the results quickly justified the
experts forecast In 1908 the Ceylon
! Government drew from the fisheries
!
| s7b5, 900. These figures assuredly fur
| nished strong reasons for retaining
1 such a valuable source of revenue, with
] it's possibilities of still greater expan-
sion in the hands of the Government.
In 1903 Sir West Ridgway retired
| from the Governorship of Ceylon. His
4 salary as Governor was $3.50 a year.
He saw that he might make a lot
more money than that out OF the pearl
fisheries He kept his eye on them.
| In 1904, when the fisheries were be-
i ginning under improved management.
TO yield a rich harvest, he initiated ne
gotiations with Mr.. Lyttelton. then
/ Colonial Secretary, for the granting of
a lease to a syndicate. He first pro-
posed that the lease should be for
1 twenty years, at rent OF $4,000 per
| annum
DEAL GOES THROUGH.
Sir Henry Blake, who had succeeded
Sir West Ridgway as Governor of Cey-
lon, recommended that the offer be ac-
| cepted But while the matter was
pending the returns from the record
| fishery of 1905 came in. Then Mr..
| Lyttelton experienced some qualms of
| conscience. It struck him that as the
i pearl fisheries for one year had
brought a net profit TO the Ceylon Gov
ernment of s755,o00, the proposed
rent OF $4,000 was not as much as the
/ Ceylon Government had a right to ex-
pect.''
He accordingly asked for more. and
| the rental was finally fixed at 100000
a year for twenty years. That satisfied
Mr.. Lyttelton. AS Secretary of the
Colonies he agreed to sell for 100000
j a year a business that was brin ging
in Ceylon a profit OF s775.o00 year.
BY profession Mr.. Lyttelton is a law
| yer. 1t is hardly conceivable that he
l. -
| on behalf of a private client II he
had 1t is certain that the private client
would never have given him another
Job. But John Bull, in his national
capacity, is far more lenient. When
| the Conservative party returns to
/ power Mr., Lyttelton will probably re-
ceive another snug Cabinet billet If
he doesn't, II will not be the Ceylon
/ pearl fisheries job that will prevent
him from getting IT.
GIFT OF THOUSANDS.
| One of the conditions of the agree
ment is that the syndicate shall take
| the Governments share of the present
years fishery The fishery season lasts
about six weeks. The profits for the
| first twenty-eight days have amounted
to s400,0 The. is to say, in two-thirds
Of the season the syndicate obtains
/ enough to pay for four years rent.
1
prefers being a director of the Ceylon
/ company of pearl fshers TO being Coy
ernor of Ceylon-
One significant feature Of the dis
graceful business. which in America
would alone have sufficed to arouse
popular clamor for an Investigation.
| was the secrecy with which the affair
| was carried through. The lease was
not thrown open TO public competition.
bDurinr the negotiations extendin e
over a year, in which the Colonial
! Office, the Crown agents and the Cey-
| lon Government were engaged with the
syndicate, not whisper of what was
going on reached the people OF Ceylon
the owners of the fisheries. 1t was
not till the end OF 1905 that some ru-
mors on the subject got about, and by
that tir1e everything was practically
| settled.
One of the conditions of the pro-
visional contract with the syndicate
was that. the lease should be subject
to the approval of the Ceylon Legisla-
tive Council
| ..rTba rassinr IF fhe or1fnauea cdp-