Containing Some Memoirs of Past Personnel

Containing some memoirs of past personnel

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CONTENTS

PAGES FOREWORD

INTRODUCTION . .

PAST PERSONNEL I-10

INTERLUDE- Forbes & Walker (incorporating R. Gordon & Co.) .. 10-15 INCORPORATION-FORBES & WALKER, LTD. 15-17 EARLY HISTORY 17-18 BUSINESS HISTORY — (a) Tea .. 18-20 (b) Rubber 20-21 (c) Shares . 21-22 (d) Freight 22-23 (e) Exchange 23-24 (f) Coconut Oil and Sundry Produce • 24 MATTERS OP GENERAL INTEREST- Colombo Brokers' Association 25-26 Colombo Brokers' Association and the Ceylon Chamber of Commerce 27 Merchants and Brokers .. 27-31 Taxation .. 32-34 Clerical Staff 34-35 Subordinate Staff 36 APPENDIX A '- Partners, Directors and Assistants of Forbes & Walker, Ltd. • • 37 APPENDIX B '- Clerical Staff •• 38 APPENDIX C '— Export Duty and Cesses on Commodities mentioned on Page 34 .. 39-43 •

FOREWORD

It has always been my intention and modest ambition to write a history, and my memoirs, of Forbes & Walker, Ltd., from its earliest beginnings, before I leave Ceylon, in the hopes that the history, as far as it goes, may be of interest to succession and possibly provide the basis for a complete history, when the time comes (as I hope it may come) for the Finn to celebrate its centenary. I think this may have been the intention of Colonel 0. B. Forbes and the late Mr. R. H. Horne, for the latter, before his death, took over and enlarged upon some very useful notes obtained from the former, without which this history could not have been compiled. Colonel Forbes had obviously also, some time or another, made an attempt to ascertain the early history of the Colombo Brokers' Association {possibly for one of the newspapers) and in this it is apparent that he was assisted by Sir Thomas Villiers, to whose book " Mercantile Lore " frequent references in this history are made. I do not hold myself responsible for any inaccuracies or misstatements and, where I am uncertain of my facts, I have qualified my remarks accordingly. I have, however, endeavoured to substantiate facts and dates from various authorities, such as " Mercantile Lore ", Ferguson's Directories and the Minutes of the Colombo Brokers' Association and Ceylon Chamber of Commerce. I trust that, for the benefit of future historians, I have managed to establish the fact that Forbes & Walker started 1st August, r881. These notes, in their present form, are " not for publication "; if any of the past personnel (now living) happen to read them and take exception to any of my remarks, I would ask for their indulgence, for I have felt that the ' lighter side ' of broking life should be introduced, particularly when describing past personnel. Most of this history was written in the latter half of 1953, as I thought I would be leaving Ceylon finally in April, 1954. My departure was, however, postponed owing to the illness and the subsequent sad passing away of Mr. D. M. Mackie, who was to have taken over from me. I have, however, brought the history up to date as far as possible.

I am indebted to Mr. F. N. Sudlow and Colonel 0. B. Forbes, our oldest two living past heads of the Firm, who were good enough to survey my draft. Colonel Forbes was able to fill in a number of missing blanks and has made some useful corrections and suggestions.

N. D. DRURY, Colombo, December, 1954. HISTORY OF FORBES & WALKER, LTD. 1881 - 1954

I NTRODUCTION We are informed in Sir Thomas Villiers' book " Mercantile Lore " that Forbes & Walker was established on 1st August, 1881. Unfortunately, there is no actual record of this, but there are two pointers which can only lead us to suppose that the date is substantially correct. The first is that 0. B. Forbes, the son of the Founder, was able to produce a Cash Book, almost certainly the first in use, which showed the brokerages earned 1-8-81 to 31-7-82 and for the two following years. The second is that the prefix numbers to our contracts obviously follow the life of the firm and must have started from No. i/r. The prefix number today is 74. From this we might immediately jump to the conclusion that the firm had been in existence 74 years and started in 1880 but, in later years, to work in with the firm's financial year,' we numbered according to fiscal years, i.e., starting from 1st April instead of, as previously, from at July in each year. The original numbering was from 1st August. Thus, the last contract made by the Founder on 7-3-22 to which reference will be made later, was 41/5004. The prefix numbers to contracts changed to 65/I on 1-7-45 and ran until 31-3-46 when on 1-4-46 the prefix was changed again to 66/1 and so on up to the present. It would be gratifying to be able to claim earlier descent, but, as it is already in black and white in Mercantile Lore ", it might be better left as it is. It is logical to assume that James Forbes and George Chapman Walker " got together " in, say, June or July, 1881 and started business proper from 1-8-81 from which date they started keeping books and numbering the contracts they put through. Furthermore, the writer has scrutinised 2" Ferguson's Directories " from the year 1871 onwards and the information contained therein definitely adds weight to the argument that Forbes & Walker started business in the year 1881.

PAST PERSONNEL James Forbes was born on loth November, 1851. There is no record of when he actually arrived in Ceylon, but it was probably not earlier than 1875 and certainly not later than 1876. He was trained as a Tea Taster in the office of 3Gow, Wilson and Co., London and first went 'planting in Ceylon. To quote from'" Mercantile Lore " he became an Assistant in 'Somerville & Co., in 1878 and a salaried partner in 1881. In this year he also started Forbes & Walker (see Footnote 2). It is believed that he parted with William Somverille as a result of a dispute to found Forbes & Walker in partnership with George Chapman Walker.

It was actually on the 28th February, 1932 that, to fit in with the Ceylon Income Tax year that the Partners, at a Meeting, decided to make up the firm's half yearly accounts as at 31st March and 3oth September. 2" Ferguson's Directory " year 1881-1882 James Forbes is shown as being a member of Somerville & Co. under personnel and their addresses. Forbes & Walker, however, appears for the first time in the same publication under " Agents and Merchants of Colombo " Produce and Exchange Brokers—Partners James Forbes and George Chapman Walker, whilst the only other broking firm mentioned Is Somerville & Co., Produce and Exchange Brokers, with W. Somerville as sole partner. ;Authority, Sir Thomas Villiers' " Mercantile Lore ". Chapter on Somerville & Co., Ltd. Page 223. 0. B. Forbes cannot substantiate this statement and nor can Gow, Wilson & Stanton, Ltd., London, which Company was not formed until 1908. Previous to that it was a Partnership of Gow & Wilson ; if James Forbes was a member of that firm, it must have been in its earliest days. Mercantile Lore " chapter on Forbes & Walker, page 135, states that he came to Ceylon in March, 1876, and went planting on Hunasgeria, Wattegama. Ferguson's Directory year 1876-78 (i volume for the 2 years) shows him as Superintendent " Gorala Ella ", Iflatale. The same volume informs us that " Gorala Ella ", was a part (or division) of Ellevakellay (Hunasgeriya) ; the proprietor was J. Boustead and the agents Lee Hedges. A coffee estate consisting of 28o acres, 184 acres cultivated, of which 40 acres was grass. The Superintendent the year before James Forbes arrived was W. Cock. 0. B. Forbes was always under the impression that his father came out to Ceylon at the age of 21, which would make the year as early as 1872, but there is no mention of his name in Ferguson's Directory before 1876. 5In the chapter dealing with Somerville & Co., (" Mercantile Lore ") Sir Thomas Villiers tells us that William Somerville was joined by James Forbes in 188o and he goes on to state that in 1882 J ames Forbes founded, in partnership with G. C. Walker, the firm of Forbes & Walker. This is not consistent with his chapter on Forbes & Walker, where it is stated that the firm was established 1.8-188 r. 6 1n the same chapter (Somerville & Co.) we are informed that the firm was started by William Somerville in 1887 on the failure of the firm of Fowlie, Richmond & Co., to which firm he came out as Assistant in 1872. On the other hand, Ferguson's Directories for the years 1871-1875 show that he was an Assistant in Fowlie Richmond & Co., but, in the volume 1876-1878 (embracing two years) he is shown as the sole partner of Somerville & Co., Produce & Exchange Brokers, with an assistant, W. M. Fiuchan. 2 HISTORY OF FORBES & WALKER, LTD.

On 21st November, 1878, he married Miss Caroline Delmege, a sister of A. A. and T. T. Delmege, partners of the firm of Delmege Reid & Co. " Jimmy " Forbes (as he was always called) had several sons, the eldest being Robert Wallace Forbes, who was born in 1879, joined the Firm 1-9-1899 and was a partner from 1905 to 1914. He married a daughter of the late Sir William Mitchell, proprietary owner of the firm of Darley, Butler & Co. ; Admiral Sir Charles Morton Forbes, who was C. in C. of the Home Fleet in the early stages of the second World War ; and Oswald Boyd Forbes, born at Bishop's House, Colpetty, in 1887, joined in 1909 after a business training in an accountants' office and in the Hongkong Bank, London, and was a partner from 1923 until his retirement as senior partner in 1946. 0. B. Forbes married Gladys Irene in November, 1919, the younger daughter of Copeland Mackie of the firm of Thomson Fraser Ramsay in Melbourne and who came to Ceylon to open up the business of Eastern Export Proprietary, Ltd. She rendered valuable assistance during the last war, when the firm was understaffed, and coped most successfully with inside and departmental matters, having had no previous experience. The youngest son, James, planted in Ceylon. James Forbes, senior, was a man of great personality, charm and business acumen. He entertained a great deal and was very generous. He retired from continuous active work in March or April, 1914, although he had an interest in the business until the end of 1925. He paid his last visit to Ceylon in 1922 and he died at his home at Potters Bar on 6th March, 1939. He was a grand old gentleman and held in the highest regard. The foundation of the firm of Forbes, & Walker was . well and truly laid by him. His partner, G. C. Walker, was originally in the British Army—an Ensign in the 73rd Foot. He married the widow of William Rose, who was originally a proprietary planter and then a partner in the firm of George Wall & Co., later Bosanquet & Co., and now Bosanquet & Skrine, Ltd. William Rose died in 1875 and his widow owned Bloemendhal Mills, at one time Bosanquet's stores. 'George Chapman Walker is believed to have been bought out of the Army by Mrs. Rose when he married her. He retired in 1909, although he continued to have an interest in the business until igz3. He died a few years later. His last visit to Ceylon was from December, rgrr, to 1st February, 1912. Walter Emmerson Drury (commonly known as " D ") came out to Ceylon after a training in the business of Mears Absolom in Mincing Lane, in the 2" Duke of Argyll " in 1891. He lived for a start with his two bosses ' in a chummery. The first night he automatically dressed for dinner, but was ruled out of order and told to change into the customary rig—pyjamas ! He was made a partner in 1899 and in that year married Beatrice Mary, the elder daughter of T. S. Grigson; the senior partner of the firm of George Steuart & Co., who lived in Steuart House, Colpetty. He took over the reins from James Forbes when he gave up active participation in the business and was in charge of the firm's affairs during the difficult days that followed the 1910 rubber boom ; the famous Dodwell case followed this and later the first World War when most of the European executive staff were away on active service. He retired in 1935, although he ceased to be actively employed from 1925 and only visited Ceylon for short periods thereafter. He was bought out gradually on a 3share of the profits for a period of 10 years. He died at his home in Westerham on 28th February, 1948. On leaving Ceylon he was made a Life Member of the Colombo Garden Club. He was a staunch supporter and warden of St. Michael's Church and a very active Freemason. For many years he held office in the District Grand Lodge of Ceylon and after he retired had the distinction of holding office in the Grand Lodge of England. He was one of those who contributed generously to the building of the new St. Michael's Church, Polwatte. It should, strictly speaking, not fall to the lot of a son to extol the virtues of a father ! It should be left to somebody else but, as the compiler of these notes, there may be some justification for a word of praise from him. Drury (senior), although not brilliant in any particular sphere in life, was much beloved and held in the highest regard by all with whom he came in contact in business and out of it. He was a man of very strict moral principles and, coupled with that, the highest code of honour. He also had great personality and charm, a magnificient sense of humour, a good mixer and a good judge of character, and very generous and charitable to all and sundry. Conscientious and hard-working ; all virtues that make for a successful

'Sir Thomas Villiers in " Mercantile Lore " states that he sold out of 73rd Regiment of Foot Lt. in 1869, joined Armitage Bros. in 1871 and, on the failure of Armitage Bros. joined James Forbes. Ferguson's Directory, year 1871-1872 shows him as a member of the firm of Armitage Bros. =Amongst the family treasures is an illustrated diary of his voyage out on the " Duke of Argyll " which left iith April, and arrived Colombo loth May, 1891 ; a ship about 400 feet long with four masts and one funnel, a crew of 43 hands including a surgeon and 3 officers besides the captain. 3 The Minute book shows that on 24th August, 1931, owing to the slump and cuts that had to be made in salaries, W. B. D. voluntarily reduced his share as from 1-7-31 and on 15th December, 1933, he agreed to remain on this reduced share with certain provisos.

1. HISTORY or FORBES & WALKER, LTD. 3

Broker. That he was held in much esteem by his brother Brokers may be judged from the fact that he was, for so many years of his time in Ceylon, Chairman of our Association and directed its affairs. His elder son, Norman Dru Drury, was born at No. 14 (now No. 77) Steuart Place, the home of the Drurys while in Ceylon, and returned to Ceylon and Steuart Place after a business training on the London Stock Exchange with J. Silverston & Co., with whom Forbes & Walker did extensive business at one time, to join the firm in 1922. He was made a partner in 1931, in which year he married Beatrice Angela, the daughter of the late F. 0. Mackwood, a Life Director of the firm of Mackwoods, Ltd. The elder daughter of E. 0. Mackwood, (Diana), brother of F. 0., and also a Life Director of Mackwoods, Ltd. married J. B. W. Grigson, a grandson of T. S. Grigson, and cousin to Norman Drury, in 1952. Grigson joined the firm as an Assistant in 1947. Another first cousin of Norman Drury's wife married Thomas Kane, a present Director, Phoebe, a daughter of Mr. and Mrs. S. E. Grant Cook of Sarnia Group, Badulla. Mrs. Grant Cook and Mrs. F. 0. Mackwood were daughters of W. H. " Jackie " Jackson, of the Ceylon Civil Service. Norman Drury became senior partner of the joint firm of Forbes &. Walker incorporating R. Gordon & Co., on the retirement of 0. B. Forbes in 1946 and later senior Director of the present firm of Forbes & Walker, Ltd., until his 'retirement in January, 1955, when he hands over to his successor, Thomas Kane (already mentioned in the preceding para), who joined in 1926, and was one of the Founder Directors of Forbes & Walker, Ltd. Following the time that W. E. Drury left Ceylon, and returning to the earlier history of the firm, Frederick Noel Sudlow, commonly known as " Suds ", took over as senior active partner. " Active " describes him admirably, for his name stands out as being one of the best Brokers Ceylon has ever produced, largely because he was " so quick off the mark " and, as an auctioneer, the only persons who could even claim to rival him in speed for selling his catalogue was the late R. H. Horne, and in more recent years Toby ' Kane. Apart from his broking capabilities, he was immensely popular, extremely generous-minded, highly conscientious and of a very ready wit. He arrived in Ceylon in 1903 after an initial training in Tea, was made a partner in 1911 and retired finally at a comparatively early age on 31-12-193o, having been bought out on a 'goodwill basis, which, thanks to the 3slump that started about that time and the introduction of Income Tax in Ceylon, took considerbly longer to pay off than was ever thought possible ! In 1910 he married Miss J. 0. Fraser, a daughter of the late planter of fame, Mr. Joseph Fraser of Pitakande Estate, Matale. To his memory his widow and children initially endowed the present Joseph Fraser Memorial Nursing Home for Europeans. A partner or director of the firm has always served on the Board of Trustees of the Home and for five years J. B. W. Grigson of our firm was the Honorary Secretary. A partner or director of the firm has also always served on the Board of the Pitakande Company. During the 1914-18 War he was a staunch member of the Colombo Town Guard but left for England as soon as he could be released to join up. In 1918 his wife accompanied the writer's parents on a trip home via the Far East and across America—a long and hazardous journey, arriving in England shortly after the Armistice. He was an enthusiastic member of the Royal Colombo Golf Club, of which he was Captain in the year 1928. He retired largely on account of ill-health to his home in Dornoch, Scotland, where he and his most delightful wife, " Joey ", have resided ever since. Only those (and there are many Ceylon friends) who have spent some part of their leaves there, can testify as to what a lovely home " Ospisdale " is. An atmosphere and charm of its own, shooting, fishing, golf for lovers of sport, and an abundance of hospitality is showered on all visitors by their most generous hosts and so it has gone on ever since they settled there. En route for Australia in 1950, " Suds " and " Joey " spent ten days or so in Ceylon. It was like a " comeback " from the past and a good time was had by all at the Colombo Club one night, when the writer had the extreme pleasure of " throwing a party " in their

'As mentioned in the introduction, the writer was to have retired on 3ist March, 1954 and would have handed over to D. M. Mackie. 'Repayment was effected through devoting a certain percentage of the profits to a " Goodwill Account ". This " Goodwill Account " must have been finally disposed of at the end of 1938 or just before H. H. Kirton retired at 31st March, 1939. 3 As stated above, N. D. Drury was admitted into partnership as from 1-1-1931. He was guaranteed a minimum salary, which he voluntarily reduced by 10% as from 1-7-1931, when his Father reduced his share (see Footnote 3 P.2). Later, following the further cut in staff salaries, this was voluntarily reduced by another so% as from 1-4-1932 ; it was, however, partially made up again on 15-12-1933, as the amount that his Father had permanently relinquished was passed on to his son. The burden of this difficult slump period was shared by all, and it was only necessary to dispense with the services of one of the Executives—K. C. B. Woodman—as from 31-12-1932 (see Pgs. g E zo) but the remainder, and the clerical staff, all suffered alike ; salaries were cut 2o% all round, but were restored by stages and all arrears were paid up as times improved, and in this the writer participated. Eventually every employee did in fact receive back every cent that had been cut from his salary. 4 HISTORY OF FORBF,S & WALKER, LTD. honour, to which all who could claim acquaintanceship with the " Suds " were invited and, despite the time that had elapsed, there were quite a few and, incidentally, quite a few headaches next day ! A. H. Barber followed W. E. Drury as the next trained assistant in Tea and was an uncle by marriage of A. J. Pelly Fry, a present Director of Forbes & Walker, Ltd. He was with the firm from 1893 to 30-6-1909 when his services were dispensed with. He had been engaged by the firm of Keell & Waldock, but he never actually worked for them as he was taken ill and died. Following Barber came R. W. Forbes and F. N. Sudlow, to whom reference has already been made. C. H. Wellard was engaged as a " tea taster ". He came to us from George Steuart & Co., and was before that in Calcutta. Like George Chapman Walker, he was a connoisseur of good food and wine and was for some time Secretary of the Colombo Club and a wellknown and popular character. Charlie Wellard was never made a Partner and he never actually went outside the office. He was in Ceylon when the writer arrived in 1922, just retired, having joined at the end of 1904. G. R. Bacot, or " Jerry " as he was known to his friends, arrived in March, 1906, as a trained " tea taster ". He came to us from a firm of tea buyers in Colombo— Odell & Co. He was a man of personality, had a good knowledge of his job and very efficient in the auctioneer's box, where he held complete sway over the room. He always had a good sense of humour a merry twinkle in his eye and held in high regard in Tea Trade circles. The writer always remembers his kindness to him when he joined the firm as a " new boy ". He was made a partner on 1-1-1923. It is believed he 'retired at the end of 1925 by mutual consent with his Partners. He married his first wife in 1913, but she died fairly shortly afterwards as a result of an operation. After he retired he married again. 0. B. Forbes, better known as " Ossie ", is a man who has probably done more for Forbes & Walker than any other since his father. A glutton for work at all times with a superb business brain, he demanded as much as he gave himself and set a standard of efficiency so high that it made it difficult for those who were to follow him to compete. He worked long and strenuous hours in the office and outside it he interested himself in many fields of activity, principally volunteering. He was a keen supporter of the Colombo Cricket Club, for which he did a very great deal, besides being its President. He is now a Life Member. At the outbreak of the second World War he was in command of the 2C.G,A. Heavy Artillery and the writer acted for him in the office. Later, when he was superseded by a regular, he returned to the office and permitted his deputy to offer his services to the 3C.G.A. and Ceylon Army Command in a capacity he never expected or asked for and for which he felt he was totally unfitted ! During this time the brunt of the work fell on " Ossie " and the late R.H. Horne in charge of the Tea Department and all the work connected with the Ministry of Food contract. He also took over the accounting side of the business 4 in the absence of the regular accountant, D. S. Hutcheson, C.A., who had joined the firm in 1938, but was one of the first of the C.P.R.C. contingent to go abroad on active service and who was later was taken prisoner in Italy. It was a period during which the Excess Profits Duty was introduced which in itself involved considerably more work over the preparation of the firm's computations. Owing to the intervention of the second World War 5T. Kane and 6G. N. de St. Croix, who would have become Partners and were absent on active service (in Ceylon for most of the time) could not become Partners in reality, so " Ossie " voluntarily reduced his own interest in the business to compensate them for loss on deferred promotion. When the writer was able to get his discharge from the Army in.1945, he was permitted to take a leave long over-due and " Ossie " continued to " hold the fort " until 1946. The firm

'He and James Forbes went out together and the bill must have been ' footed ' very largely by F. N. Sudlow and 0. B. Forbes, whose shares of the profits rose appreciably and, in a lesser degree by the incoming partners, H. H. Kirton, C. W. Walker and A. F. Wallace Tarry. ,He was mobilized on return from leave i8th November, 1939, but devoted all his spare time to office work. He was compulsorily retired on account of age, 27th April, 1942. 3 The writer was mobilized nth May, 1942 and demobilized in June, 1945. 4 D. S. Hutcheson was mobilized 21st July, 1940, left with the Ceylon Planters Rifle Corps rst August, 194o, was wounded in N. Africa 5th December, 1941 and taken prisoner of war, June, 1942. Released September, 1944 and was discharged through disability 23rd February, 1945. He was paid half his salary by the firm while on active service and three-quarters after his marriage in May, 1942. IT. Kane was mobilised 2-9-1939 and demobilised in June, 1945 6G. N. de St. Croix was mobilised December, 1941. Others of the firm on active service were A. J. Pelly Fry (R.A.F.) who was mobilised February, 1942, and demobilised December, 1945, and M. P. Davis (See P. 8). HISTORY OF FORBES & WALKER, LTD. 5 carried on under numerous difficulties during this long war period, made more difficult by the fact that " Ossie " sustained a serious injury as a result of a motor car accident and was incapacitated for some time. In 1943 he also underwent an operation, during which time the writer was graciously granted a month's leave from Ceylon Army Command to assist the much over-worked Robert Horne in the office. In recognition of his services to, the C.G.A., " Ossie " was awarded the c.B.E. on 1-1-1941 and was retired as a full Colonel on 27-4-42. The firm's thanks are due to O.B.F. for having inaugurated the 'Staff Provident Fund, now a prosperous concern, and from which many have derived, and many more will derive, considerable benefit. He also initiated the move to amalgamate with the firm of R. Gordon & Co., at the end of the second World War. He was bought out on an annuity when he left the business. Since then he has remained in Ceylon and continues to work at full pressure, serving on various Company Boards, but his principal interest is the British Ceylon Corporation, of which he is Managing Director and whose affairs he has so ably managed, sometimes against heavy odds. The success of his policies has been reflected in the results he has achieved for shareholders since he took over. It is " Ossie's " ambition to complete 5o years in Ceylon before leaving the island for good. He and his artistic, charming wife will be much missed by the community at large when they finally go. After leaving Forbes & Walker he stepped into the breach and took over the Chairmanship of the Chamber of Commerce for the year 1948-49 when a candidate could not easily be found ; this exalted position had never previously been offered to a Broker I Prior to going on leave in 1952, he sat in the 'House of Representatives as one of the European members nominated by the Governor-General at the last elections. It is a pity that a seat in the House is not vacant to him now as, with his business knowledge and experience, his study of politics and knowing how to deal with Ministers, he would have been a valuable asset to Europeans and to the business community in the difficult days through which we are passing. Like his Father before him, " ossie " is a very hospitable person and many are those, including the writer who, from his earliest days and later after he was married, have spent numerous pleasant evenings in their company, partaking of their most generous hospitality. Soon after " Ossie " had retired he and his wife were host and hostess to what will probably go down in history as being the most monumental party ever given ; it took place at the Galle Face Hotel. Unfortunately it so happened to clash with the very same evening that the writer was seeing his wife and family off to England, so that when he eventually fetched up at the party he was not in the best of party spirits ! In the month preceding the arrival of 0. B. F. in Ceylon in 1909 came W. D. Garrett. History has not much to relate about him, except that he was nicknamed " Gertie ". He was in Ceylon during the whole of the first World War but his services were no longer retained when the others returned after the War, he then went to Spencers in South India and had something to do with running Railway Refreshment Services. It is believed that he died fairly soon after leaving Ceylon. Following 0. B. F. in 1910 Henry Harold Kirton, nicknamed " Narry ", arrived in Ceylon as first qualified Accountant to Forbes & Walker. His task must have been a formidable one for, prior to his arrival, no actual books were kept and he installed the books now used in the firm, brought up to date and modernized by the present Accountant and Director, D. S. Hutcheson, who took over from him. He arrived in May, 191o, when the rubber boom was in full swing and when such records and books as were kept must have been in a pretty chaotic condition. He went on leave in August, 1914, and joined up while at home. Harold Kirton was another generous-minded and popular individual ; a bachelor up to the day he retired on 31-3-39 and he enjoyed a party He was made a Partner on 1-1-1925. Some time after his retirement he married Mrs. A. D. Learmond, whose first husband was later to become a Director of Forbes & Walker, Ltd., and settled at Eastbourne. He died under very tragic circumstances in 1952, having taken his life while of unsound mind. His health, and eye sight in particular, began to fail and he was threatened with blindness. He retired on an annuity based on a percentage of the nett profits of the firm up to a maximum amount per month. During his lifetime the annuity never fell below

'This was inaugurated as from 1-9-1934 for all employees of the firm, other than Europeans. 5% to be contributed by the employee and 5% by the firm. On 1-1-1936, the facilities were extended to European employees on the same basis of contribution. From 1-4-1947, all employees drawing Rs. 400.00 and under per month, came on a basis of zo% and ro% from 1-4-1950, this was extended to cover all employees, other than Directors. =As from January, x955 0. B. Forbes will again be nominated for the European Seat which fell vacant as a result of the recent death of Mr. A. C. Tutein Nolthenius. 6 HISTORY OF FORBES & WALKER, LTD. the maximum. In his will he left LI,000 to the firm's Provident Fund and the Fraser Home is to benefit to the extent of £1,000 on the death of his widow. He volunteered his services in the first World War and also left with the Ceylon contingent. About the same time arrived A. T. G. Gardner, but he left after the termination of his first three years' agreement. He was known as " Goldie ", which was in fact his Christian name and he was a popular and likeable character but possibly not cut out to be a broker. He was a first-class " rugger' forward and captained the C.H. & P.C. He did well in the first War and lost a leg. At some time or another he took up motor racing and became famous at it. C. H. Hext only remained for two months in the firm, so he must have been employed in a temporary capacity, possibly to assist in clearing up the aftermath of the rubber boom. R. M. Milne, or " Diclde ", was in Ceylon on holiday from Calcutta when he was taken on in 1910, after Hext was found to be a failure. He, too, was one of the contingent to volunteer for the first World War. He left in 1920, presumably of his own accord, to join the General Rubber Co., where the writer well remembers him as one of the " big noise rubber buyers, who was inclined to wield the big stick and to tolerate brokers ! When the General Rubber Co., ceased to function and were thus no longer a power in the rubber world along with C. W. Mackie & Co., he fell on had days, and his pretty and charming wife must have had an exceedingly difficult time. He later returned to Ceylon in an attempt to re-instate himself as a broker, on his own, but that effort failed dismally. He died later in Cheltenham, where he had lived for some time, but how or under what circumstances history does not relate. L. des Clayes, the next arrival, was taken on in a temporary capacity when Carson & Co., had dispensed with his services. He was only with us for a year and was engaged by us as we were so under-staffed at that time. Charles William Walker, commonly known as " Walks ", and unrelated to the founder, George Chapman Walker, joined us early in 1914. He came to Kearley & Tonge from Calcutta where he had been a year or two before joining us. He went home on War service in January, 1917. He and his compatriot " Narry " Kirton lived together as bachelors in chummeries for many years but " Walks " was the first to break away. He fell for " Winnie " Nye, a blonde and pretty Perth (West Australia) girl and married her. When the writer first came to Ceylon in 1922 he worked under him in the Freight Department and found him to be a most excellent overlord. " Walks " had several most excellent qualities befitting a broker, the chief of which were his ready wit and radiant personality. He was made a partner with Kirton on 1-1-26. His chief flair was as a rubber broker and thus his connections were mainly with that department, although having been trained as a tea taster, he worked in that department for a time. His sister was married to G. A. Ponsford, in charge of Whittall's Tea Department. He was another staunch supporter of the Colombo Cricket Club and now a Life Member. He retired as from 31-3-46 but he had the option of leaving Ceylon any time after 3o-9-45. He is settled happily in his home in Perth and enjoys a life pension from the firm and continues to write amusing letters to various members, describing himself as an expert " house coolie ' ! The writer's earliest meeting with most of the aforementioned personalities was either. just before the end of the first World War or just after the Armistice, when he was the one and only guest outside the firm to attend a sumptuous luncheon party given by James Forbes, senior, to all members of the firm who were then in England and that included the writer's Father ; thus, who still remained in Ceylon to keep the business going is a 'mystery ! The champagne luncheon was given in honour of the serving members of the firm and was held at the Oriental Club, Hanover Square, London, of which club James Forbes was a staunch supporter. Speeches were made and there was some kindly reference to the " young and honoured guest ' who was either still at his public school or had just left, but in any case was so full of champagne or Club vintage port, or both, that he could not have attempted to reply and, in any case, would have been far too shy to do so ! In 1920 A. F. Wallace Tarry (who had substituted this name some time before for the Teutonic name Von Kutletsz) joined the firm with experience as a tea taster gained in the firm of Gow, Somerville & Co. He was an easy-going, pleasant character of small stature but he made up for it in other directions, but he could never be described as being a ' glutton " for work nor was he exactly fitted for a broker, being slow and ponderous of , O. B. F. has subsequently supplied the answer. There were G. R. Bacot, C. H. Wellard, 0. B. Forbes, W. D. Garrett and L. des Clayes. Until a week after the Armistice 0. B. F. and L. des Clayes were mobilised and did night watches :- 2 nights on and i night off. HISTORY OF FORBES & WALKER, LTD. 7 speech and action. He was admitted into partnership with Kirton and Walker on 1-1-1926. He had a very cultured and able wife and one of his sons is a first class planter on Alma Estate. He retired, or was retired on grounds of ill-health, at the end of 2935 and he died in England in the year 1948, his wife having pre-deceased him. He retired on a monthly pension from the firm. F. L. Tibbs was the next arrival but he fell on bad days and had a somewhat unfortunate career in Ceylon. His services were finally terminated in his fifth year in our employ. He worked entirely inside the office. Next followed J. W. E. Adamson (" Wilf ") in 192o. He had several beautiful sisters in Ceylon, one of whom married W. H. Smallwood of J. M. Robertson & Co., another E. F. Marriott of Madulkelle Estate (Pitakande Co.). His work was mostly connected with the Rubber Department, which was his obvious bent. He was of a very cheerful disposition, always on top of the world and very much liked by everyone. A gay bachelor for many years he, too, later married a pretty and charming Perth girl, Gwyneth Ambrose, and in 1952 retired and also settled in Perth (Western Australia). He was a partner when the firm amalgamated with R. Gordon & Co., having been admitted on 1-1-1936 vvith.R. H. Home and, therefore, one of the first Directors of the Limited Liability Company. He qualified for a pension of diminishing proportions limited to 15 years. Robert Halliwell Horne, after a training in Tea in Samuel Hanson & Son's office in London, arrived in Ceylon in the latter half of 1923 and worked with " Jerry " Bacot and Wallace Tarry, later under the latter only, who sat back while Robert did the work ! When the former retired he took charge of the Tea Department from then onwards until his death. Tea has always been the mainstay of the firm's business and Robert husbanded it and, if anything, increased it. He was a hard and determined worker and is generally recognised as one of the best authorities on Tea Ceylon has ever produced. He made the subject his life's study and was, therefore, an invaluable man to Forbes & Walker, the Tea Research Institute, the Tea Commissioner, the Tea Control Department, the Tea Propaganda Board and to everything and anything connected with the Tea Trade. His advice was keenly sought and freely and willingly given. Besides all this he was a man with a keen sense of business. He was progressive in thought and action and was far-sighted. With no grounding in books or accounts he had a flair in this direction and made it his business to understand' the firm's books thoroughly and understudied " Narry " Kirton and " Ossie " Forbes and their methods until he could himself take out a trial balance without any difficulty. Reference has already been made to the hard work put in by him and " Ossie " during the second World War and it may well have been that, as a result of this time of strain, his health became impaired. Outside the office and from his arrival in Ceylon lie was a keen Rugby football player, Scottish school trained, and probably one of the best and most hard-working, dogged forwards Ceylon has ever seen. He was President of the Ceylon Rugby Football Union and played for " All Ceylon " on numerous occasions in the Madras tournaments and against visiting first-class sides. In 1929 he married Phyllis Wellman, who had come out on a visit to stay with the L. Mc. D. Robisons, of the Education Department. She had a sister in Ceylon married to Ian Wilson of the P.W.D. The elder child, John, joined the firm in 1949 and is following in his father's footsteps in the Tea Department, having many of his sterling qualities. He was admitted into partnership on 1-1-1936 with " Wilf " Adamson. In 1944 Robert visited Cochin (South India) to act for the Government Tea Inspector. It was the occasion of this visit that gave him the idea of opening up a Tea business in Cochin. He paid another visit in 1946 and provisionally engaged 1R. G. Peirce, the " Tea Inspector ", and steps were taken to start business. Owing to taxation difficulties, it was decided that the South Indian venture would have to be entirely separated from the Forbes & Walker accounts. At this stage, E. F. Kingsley of the firm of Ewart Maccaughey & Co. Ltd., London, arrived here after a visit to Cochin and proposed a combine of forces with his London firm and A. W. Figgis & Co., of Calcutta. This was agreed to, largely as it solved the problem of having Directors resident in India. To digress for a short space, (for this is really business history) a company- 2Forbes, Ewart & Figgis, Ltd.—was formed with half the shares owned by the then partners in Forbes & Walker (in their individual capacity) and a quarter each held by Ewart's and Figgis'. Capital authorised and issued Rs. 400,000.00 in shares of Rs. roo.00 each, paid up Rs. ioo,000.00 i.e., Rs. 25.00 per share. Trading started on 1-3-47.

=His son C. R. R. Peirce joined F. & W. Ltd. as an assistant on 16th November, 195o. =Since these notes were first compiled, the Forbes & Walker " A " class shareholders have reluctantly felt compelled to sell out their interest In the business, mainly on account of taxation implications as individual shareholders and the introduction of Death Duties in India. 8 HISTORY OF FORBES & WALKER, LTD.

The business has proved a profitable venture and has more than exceeded expectations. It suffered from early growing pains and received considerable personal assistance on the spot from Robert Home, Denis Mackie and Toby Kane, all of whom have worked over there for periods. It has been a constant source of frustration and worry, particularly to non-resident shareholders and to those who have to manage its affairs from a distance. Forbes & Walker shareholders derive little benefit from their investment owing to the high incidence of Indian taxation, ordinary tax and supertax assessed on world incomes deducted from dividends, with no reciprocal double tax relief between Ceylon and India since the latter became a Dominion ; but the business itself has been a little gold mine and it has been solely instrumental in developing a proper Tea Market in South India run on ethical lines through the medium of public auctions and the setting up of a Tea Traders' Association. The firm has purchased a block of land and has erected two firm's bungalows thereon in recent years. A rival firm of Brokers, Messrs. Carritt Moran & Co., later entered the field. Steps are now being taken substantially to increase the capital of the company and to start on a policy of gradual Indianisation. One of the assistants in Forbes & Walker's Tea Department, A. D. Neale, obtained his training in this business before joining the firm. Robert Home, looking ahead, foresaw the advisability of having links with London Tea Brokers and he was chiefly instrumental in bringing about the present happy set-up of the firm about which more will be written later. Over the 195o Christmas holiday Robert, who had always been a very fit man, was taken ill. His case was diagnosed as ' Coronary Thrombosis ' and he was ordered complete rest. When he got better he went to the United Kingdom with his wife and, after being through various doctors' and Specialists' hands, a major operation was decided on, from which he never recovered. He died at the early age of 48 on 2nd October, 1951. Robert Home had instituted an annual Tea Market Review, a most popular and instructive manual and widely made use of by the Tea Trade, here, in London and other Tea centres. His loss to the firm seemed irreparable. It was, in fact, a major calamity, but his successor, " Toby " Kane, immediately filled the gap as head of the Tea Department and has ably fulfilled the onerous duties that befall to that Director. The firm had also been singularly fortunate in having Denis Mackie with his excellent brain and knowledge of Tea to lend his weight and very useful assistance to this Department, as well as to the Share Department. There is also Arthur John Pelly Fry, now very ably carrying on, as these notes are written, deputising for " Toby " on leave. Thus, how true is the saying that " no one man should ever be considered indispensable ". Robert's widow receives the widow's pension as laid down in the Directors' minutes for 15 years. She very bravely returned to 1Ceylon to continue the home for her two children at Ratmalana, in which they had settled just after the war. 2A younger brother of Robert's is a planter in Ceylon. After his death a close friend wrote an appreciation ; the writer feels that he cannot do better than quote the following extracts therefrom :— " Robert Home made a name for himself in three ways, as a Broker of outstanding ability ; as a first-class rugger forward in his younger days ; and, above all, as a man whose character aroused the admiration of everyone who met him, against whom no word of dislike or derogation was ever heard—how rare such men are—and a friend of the finest quality to those who were privileged to enjoy his friendship ; they were many ...... He was one of the most modest and least aggressive personalities the writer, as a close friend of his, has ever had the good fortune to meet ; this is a long experience. He was possessed of a calm and of a remarkably sound judgement of men and matters. One always felt the better for having met him and talked with him. He enjoyed a popularity which it never occurred to him to seek ; he had a charm of which he was quite unconscious ". S. T. Pearce (" Steve ") joined the firm's Tea Department in a temporary capacity to start with from Cumberbatch & Co. He must have remained on for longer than was anticipated and the writer seems to recall that there was a break in his employment and that he was re-engaged ; at all events, his services were dispensed with finally in 1926.

'Mrs. Horne finally left Ceylon with her daughter on 11-8-x954 to take up permanent residence in the U.K. iHe has since left Ceylon. HISTORY OF FORBES & WALKHR, LTD. 9 Miss I. M. 0. Jenkins (" Ida ") or (" Jenks ") was the daughter of Sir George Henry and Lady Jenkins of Victoria, Australia, and a sister of Mrs. A. P. Waldock (Lee Hedges & Co., Ltd.) who had predeceased her many years. She was employed in the office for some little time as a stenographer, before she became one of the permanent staff in 1925. Her long period of service bears testimony to the fact that she was a most valuable and useful adjunct to the firm. She certainly made history, for no lady in any business in Colombo has been so long associated with a business and " Jenks " came to be regarded as a very vital part of the machinery and a ' by-word '. Forbes & Walker and its affairs and its personnel (most of whom she thought the world,a, although a few she disliked intensely) were her main interest in life. Her other interests were the Galle Face Hotel, where she permanently resided, and bridge at the Garden Club. Her life was ordered by a routine which was seldom varied, although, like others, she took her normal leave to the United Kingdom, most of which time she spent in visiting Ceylon friends. Forbes & Walker without " Jenks " was never quite complete and Forbes & Walker's clients daily contacted her on the telephone for information about markets and relied on getting the latest and most up-to-date information from her. She was an adept at keeping share clients engaged in conversation until such time as the man in charge could spare the time to interview them. This was particularly useful in boom times for she could tell them all they wanted to know and take their orders. Many of them sought her advice and difficult clients were never permitted to leave her table except to go out ! One share client in particular never spent less than an hour in the office, discussing the merits and demerits of every share in the list and then went out without having placed an order or made up his mind what he wanted to do. Sometimes, in desperation, " Jenks " would conduct him into the inner room, where he got short shrift and was either made to buy or sell something whether he liked it or not, or told to quit, but whatever happened he left in the knowledge that he had received service ! This is merely an illustration of the value of Ida Jenkins in a Broker's office. The fact that there was a lady sitting under the same roof made no difference to the normal run of things ; tempers and had language were not controlled and Ida must have become quite hardened to it all. On several occasions the writer remembers hearing " Suds ", after using the most frightful language at a peon, typist, clerk or telephonist, take breath to murmur " I beg your pardon, Miss Jenkins " ! There was nothing that went on inside Forbes & Walker's office that Ida did not know about. Admittedly, she had an inquisitive nature, but it was all because she was so vitally interested in everyting that went on and, of course, she knew the family history and inner secrets of every member, including the clerical staff, in whom she took the keenest and most motherly interest and so they all worshipped the ground she trod on and took all their troubles to her. Her only failing, if it can be called a failing, was her penetrating voice and broad Australian accent and one always felt rather sorry for the other ' inside ' worker who had to sit opposite her ! Ida Jenkins virtually died in harness ; she could not have borne to have been pensioned off but it was reaching that stage when she first started to fail in health. She was actually on the list of pensioners in 1947 and, after a protracted illness, died at the Fraser Home. Next on the list is W. G. Jackson, who took over the job of F. L. Tibbs, and was one of those who sat opposite Ida for a long time ! He was engaged by Drury senior, who got to know him as organist and choirmaster at St. Michael's Church and rescued him from the Accounts department of the Ceylon Government Railway. He was a small, timid, insignificant little man, but he did his job conscientiously and well. He had a somewhat large, overpowering but kindly wife, who obviously "wore the trousers "! They elected to live in bungalows without fans and considered it their duty to entertain members of the firm to dinner, who invariably had to find excuses to get out of this form of entertainment ! He retired of his own will at the end of 1935 to Devonshire but they later moved to South Africa, where he died a few years ago. K. C. B. Woodman (" Woodie ") sought employment in Colombo after planting on Meddecombra and, as it so happened that the firm was in need of somebody at the time, he was engaged by Drury senior in 1925. He was a curious person and very vague— so vague that, on more than one occasion, he forgot to execute freight bookings, which were entrusted to him, with the result that the department started to lose business ! TO HISTORY OF FORBES & WALSER, LTD. As a result of the slump that occurred in 1931-32 some drastic retrenchment and pruning of overhead expenditure had to be done by commercial firms and by the Government. " Woodie's " services were found to be superfluous so he left in the first half of 1932. For a time he lived with the writer and G. N. de St. Croix in a chummery and he was always a source of constant amusement to the inmates and was teased unmercifully. Nothing has been heard of him since he left Ceylon. M. P. Davis was engaged from October, 1935 to take over the inside job from W. G. Jackson and he had previously been employed in Bois Brothers and the Colombo Commercial Co. His interests were more concerned with the share market and making money for himself and his clients than with his own job in the office, but he worked up a useful connection in shares which had to be carefully watched for it was of a highly speculative nature. He was absent for a long period in Australia undergoing treatment for ophthalmic goitre. He was commissioned in the Ceylon Light Infantry but, on account of his health, was not mobilized all the time. It was apparent that by 1946 he had made sufficient money to retire himself from Forbes & Walker and he is believed to have bought himself an interest in a coffee estate in South India with his father. During the war, with Malaya occupied, he managed somehow to convince his clientele that there was money to be made out of Straits rubber shares and, whenever a movement in these has been started since, the cry goes up " Where's M.P. ' ? ". Re was a good athelete, full back at Rugby football and a self-made golfer, who annexed the Ceylon championship in one year. After he left, the inside work of the office has been divided up and is now shared amongst three of the Ceylonese assistants. r P. L. Foulsham's stay in the firm lasted five months. He was engaged after the last war by the writer as a bachelor He surprised everyone by arriving out married ! It wasn't long before he discovered that two could not live as cheaply as one on the salary accorded to a bachelor on his first term agreement. He was an exceptionally nice lad and would have fitted in well, but the partners were quite rightly not prepared to alter his terms of service until he had proved his worth, and this was made plain to him before he ever came out to Ceylon and was contemplating matrimony. Thus, he was assisted by the writer to obtain employment in the rival firm of 'Messrs. E. John & Co. as it was then, where he has done very well since. Thus, our loss was their gain, certainly to the extent of the cost of his passage out to Ceylon !

INTERLUDE—FORBES & WALKER (INCORPORATING R. GORDON & CO.). That brings the early history and memoirs of the firm of Forbes & Walker's past partners and assistants to an end ; the remainder are still with the firm of Forbes & Walker, Ltd., whose " write-ups " must be left to posterity. The history must now revert to the 1st April, 1946, when Forbes & Walker amalgamated with R. Gordon & Co., to form Forbes & Walker (incorporating R. Gordon & Co.). This was the first merger amongst brokers that has ever been achieved and its success is mainly due to the original formulators of the plan, 0. B. Forbes and R. IL Home on the one hand, and D. M. Mackie and A. D. Learmond on the other. The writer was rather out of these early negotiations as they took place in the closing stages of the last war, when much of his time and patience was being demanded and exhausted by Ceylon Army Command There had, of course, been other mergers amongst Colombo firms and several have been attempted since without success. The most successful in the writer's memory was between Messrs. Bosanquet & Co. and Skrine & Co. in 1930, both businesses on two floors in the National Mutual Building, as Forbes & Walker and R. Gordon & Co. were similarly placed in Prince Building. The Bosanquet-Skrine merger, however, must have produced enormous difficulties on account of the numbers of partners each firm could produce 1 In the case of our merger, apart from the similarity of the two businesses, an added inducement was that the staffs of both firms were very depleted at the time. Another successful merger took place between Messrs. Carson & Co., Ltd. 1- and Messrs. Cumberbatch & Co. on 4-1947• 0. B. Forbes and C. W. Walker had just retired from Forbes & Walker;and S. F. 0. Lovell from R. Gordon & Co. D. M. Mackie and A. D. Learmond were thus admitted as partners and J. K. Speer as senior assistant on commission on identical terms with A. J. Pelly Fry as senior assistant of Forbes & Walker. J. K. Speer was the only other European in R. Gordon & Co.

, It has since transpired that he has elected to leave E. John, Thomson, White & Co., Ltd„ at the end of this current year, 1954. even though he was to have been admitted to partnership. HISTORY OF FORBES Sr WALKER, LTD. I I ••■ft. The ratio of the business was conveniently assessed at three to one. Office staffs were amalgamated and R. Gordon & Co.'s staff, with a young Provident Fund, were linked up with Forbes & Walker's Fund. Both offices on the ist and 2nd floors of Prince Building were retained—Shares, Exchange, Accounts and latterly Freight moving downstairs to R. Gordon's half floor, and all produce upstairs in the old Forbes & Walker quarters, which monopolised the whole floor, but which, of course, includes tea tasting and tea and rubber sampling accommodation. It is a pity that there is no complete record of the firm of R. Gordon & Co., and that reference to this business could not have been made in Sir Thomas Villiers' volume " Mercantile Lore ", but Denis Mackie had been able to supply some useful notes from memory, with the assistance of Mr. R. F. J. Casie Chitty, the firm's sub-broker, who joined R. Gordon & Co. in 1916. The writer has also discovered some old notes obtained by 0. B. Forbes and probably supplied by Sir Thomas Villiers, amongst the Colombo Brokers' Association records. The firm of R. Gordon & Co. started originally as T. J. Anderson, Exchange, Freight and Produce Broker, the first Agent/Manager of the Colombo branch of the Chartered Bank of India, Australia and China in 1892-95. A very able, capable and keen banker, he took charge of the bank at a time when it was necessary to work up business and collect constituents and in this he ably succeeded ; unfortunately, he was a man of little refinement or education and invariably found it an effort to confine himself to facts in any statement, and the considerable business he was doing for the bank did not apparently materialise in profits and, explanations from Anderson still further complicating affairs, his services were dispensed with in 1895. T. J. Anderson then started as a broker in Colombo with a relative, J. C. Tulloch, as assistant and, in 1898-99, Anderson went home, leaving another relative, C. S. Wilson, nicknamed ' Coney ' (whom he had imported from Canada) in charge. Anderson decided not to return to Colombo and his business and goodwill (such as it was) was disposed of to C. S. Wilson, who took in R. Gordon (an assistant in Leechman & Co.) as a partner in starting the firm of Gordon & Wilson. T. J. Anderson very shrewdly foresaw the coming rubber boom and, in starting in London as " Tea, Rubber, Share Broker ", he had many opportunities of inside information and so cleverly did he operate (in " Linggis " chiefly) that he made a fortune and, at the height of the rubber boom, he closed down (or sold) his business to C. E. Stevenson (" Fat Boy "), late of the Colombo Commercial Co. who had been his assistant. C. E. Stevenson became a member of the Stock Exchange and retained a very considerable Ceylon connection in shares. T. J. Anderson bought a castle (in the course of construction) near Crinen, Argyllshire, but, before the huge building was completed, a change had come over the rubber world and visions of large incomes for all time began to wane, with the collapse of inflated rubber prices, Anderson found himself " over-castled " and with a property no one wanted. It is doubtful if he ever occupied it. He was a brother of Eric Anderson (planting on Dunkeld, 1895) who also made a lot of money on the flotations of tea and rubber Companies and retired. The following " tree " will show the connection established by :— T. J. Anderson 1895-98

Gordon & Wilson 1902

R. Gordon & Co. 1912 C. S. Wilson & CO. 1912-13 C. S. Wilson, T. F. Webb ( Asst.)

T. F. Webb ' & Co. 1914 closed down and Webb joined Fradd in 1917. The minutes of the Colombo Brokers' Association reveal that on 7th February, 1912, Messrs. C. S. Wilson & Co., were elected members of the " A " section (Produce only) and Messrs. R. Gordon & Co. of " A " and " B " (Shares) Sections, and that C. S. Wilson resigned as from 1-10-13. Robert Gordon, the founder of the firm of R. Gordon & Co. came to Ceylon in 1895 as a member of the staff of the Chartered Bank of India, Australia and China. He must have left the Bank after Anderson to join Leechman & Co. 12 HISTORY OF FORBES & WALKER, LTD.

From 1912 the firm of R. Gordon & Co. continued as a partnership under this title until the merger took place with Forbes & Walker in 1946. Gordon was an extremely shy and retiring man, but of lovable personality and he was known to all his numerous friends by the inverted nickname of " Sidey ". By virtue of his early banking experience he was able to build up a large and most valuable Exchange Broking connection, which has remained as a great asset to the firm and its successors. He married Miss M. K. F. Dighton (" Dighty "), who was matron at " Sterling House ", in use before the Fraser Home, and who had nursed him through a long illness Mrs. Gordon died early in 1953, having been a pensioner of the firm since her husband's death, only a few years subsequent to his retirement at the end of 1927. Amongest those who joined Gordon & Wilson, or R. Gordon & Co. in its early days were the following :- J. B. Blanchard, who lived with " Ossie " Forbes at one time in " Glenalla ", Flower Road, where the Gordons lived for a long time and much later the Homes. He went on his first leave in 1911 and 0. B. F. thinks that he had been out at least 6 years before this. He was killed in action while serving in France during the 1914-18 War. A. F. (" Sprago ") West, arrived in Ceylon a little before Sudlow to join Gordon & Wilson. He had left owing to ill-health before 0. B. F. came out in 1909 and was associated with C. E. Stevenson in Mincing Lane. He returned to Ceylon before the outbreak of the first war and left unwell again soon after the war was over. S. F. 0. Lovell (" Spencer "), originally came out as a Tea Taster and probably joined Gordon & Wilson about 1910-11 and became Senior Partner after " Sidey " Gordon's death. He became head of his firm when Gordon retired and remained in that position until his own retirement at the end of 1945. He spent most of the 1939-45 war years in the United Kingdom, where he became an enthusiastic member of the Home Guard and during his absence Denis Mackie acted as Number One. " Spencer " was an energetic broker in the fields of exchange and shares. He had many friends and he had a very cheerful personality, which made him a popular figure both in and out of business. He served in the first World War and married during that war (1917) Francis " Frankie " Murphy. He died on 22nd June, 1948. His widow enjoys a pension from the firm and there is a daughter, Nora married to R. Mackie of Lipton's Ltd. and a son, George, planting in Ceylon, has just announced his engagement to the daughter of Charles Mackie, a son of the founder of C. W. Mackie & Co. W. T. (" Willie ") Bogle, or " Bogie " as he was called, died suddenly and tragically in 1939 ; his widow lives and continues to receive a pension from the firm. The writer couples his name with " Suds " and " Walks " as being the most entertaining and amusing personalities amongst brokers. He was a proverbial practical joker and had a very quick and ready wit. Drury senior and " Bobbie " Meaden of E. John & Co. were continually baiting each other at share meetings, each trying to get the better of the other at and this went on long after " D " retired between " Bobbie ", " Suds ", " Ossie " and " Willie ' Bogle. The morning meetings in the hall of the Hongkong & Shanghai Bank invariably opened with this form of entertainment. A story told today relates how " Ossie " arrived at the meeting dressed in his C.G.A. uniform. " Bogie's " opening gambit was, " Oh ! Good morning, Inspector. The pmell is over there ! " Although he may not have had a first class business brain and took life easily, he made a good Broker as he was the most entertaining and likeable character and had great charm and personality. C. M. Young—joined R. Gordon & Co. during the first war, but he could not have lasted very long. He was accountant in the Colombo Municipality and Secretary of the Golf Club for years. F. W. Chalk (" Chalkie ") who died in Colombo in 1927 achieved considerable prominence as a share broker during the boomlets of the twenties and was responsible for the authorship and issue of the first " Handbook of Ceylon Rupee Companies ", which has been published annually ever since and which publication is now entrusted to the Secretaries of the Colombo Brokers' Association. r. HISTORY OF FORBES & WALKER, LTD. 13 4.. uE After the 1914-18 war the first assistant to join the firm was 'D. M. Mackie in 1922 and he was followed by L. R. Lermitte in 1923. " Mitte ", as he was invariably termed, was a personal friend of the writer's, who lived with him in chummeries and was best man at his wedding. He was also a very keen Rugger forward and played for " All Ceylon ". It His famous cry when leading the pack of " Down Heah I " could be heard all over the field. Mitte died tragically in 1942 while training in a C.P.R.C. contingent at Belghaum, India ; he left behind a widow mid two children and his widow received a pension from the firm for a number of years. W. L. Knopp, previously in Delmege, Forsyth & Co., Ltd. served as an assistant for a few years prior to the 1930-31 slump but was then " axed " and left Ceylon to join a firm of brokers in Madras. A son in J. H. Vavasseur & Co., Ltd. has just become :engaged to Elizabeth Hayward, an employee of our Finn. The remaining personnel of R. Gordon & Co., as already stated on page xo, D. M. Mackie, A. D. Learmond and 'J. K. Speer all came over to F. & W. on the amalgamation. Denis Mackie had come out to R. G. & Co. in 1922,. Jake ' Speer in September 1925.

'Denis Mackie was living when these notes were written. He went on leave in December, 1952, but could not return to Ceylon to scheduled time, as he was ill for most of the time. He had for long suffered from high blood pressure but it became much worse during the time the writer was on his last leave in 1952, when he was acting for him. The doctors prescribed complete rest in England but by August, 1953, he was considered sufficiently fit to return to Ceylon to take over from the writer. who was scheduled to retire as from 31st March, 1954. It was Denis' intention to take over for one year and to retire 31at March, 1955. Unhappily this aspiration never materialised for, in the New Year, his health started to deteriornte very rapidly, so much so that it became apparent he would never take over the responsibility of head of the firm evansfor one year. He left Ceylon with his wife, Kathleen, on 23rd March, 1954, but so rapidly did his condition deteriorate that there was some doubt whether lie would ever be able to get on board. He was in fact carried on board and died at sea a day out of Port Said on 4th April, 1954. It was a long and very anxious time for his very charming wife, now widowed in England with four children, one of them married but two are still on her hands, but she bore it all with great courage_ Before leaving Ceylon he was voted a retiring gratuity and his widow enjoys the usual pension for 15 years. Denis Mackie, before coming out to Ceylon in 1922, was with the firm of David Lloyd Pigott & Co., for two years. He captained the C. H. & P. C. hockey side for several years and on one occasion he captained All-Ceylon against India. He was also a useful tennis and billiards player. During the first World War he joined up at the age of 16 and had the i914-r5 medal. In the second War he was a cypher officer at the Naval Office as well as working for It. Gordon & Co. His work at the Naval Office was usually done at night. A memorial service was held at the Church of St. Olave Hart Street on Friday, 3oth April, 1954. which was attended by a number of his friends and business acquaintances in the City of London. At this service an address was delivered by the Rev. A. Powell Miller, T.D. and the address was written for him by one of Denis' closest friends, who happened to be on leave at the time. The writer feels that he cannot do better than reproduce the exact wording of this address, which so fittingly describes Denis' character. " I am privileged now to be the mouthpiece of those who knew and esteemed Denis Malcolm Mackie, for it is with the generous co-operation of some of his more intimate friends that I am able to speak this word of tribute with real assurance that he had deservedly won their high regard and affection. He was a native of this great City, receiving his education in King's College School, and early revealing his sense of duty and obligation as a citizen, for when the testing time of the first World War came he enlisted though nearly two years under age for military service. After serving his country here and overseas he started his business career as an apprentice to the Trade to which the rest of his life was given. In the Tea Trade he carved a niche for himself and worked his way upward to a position of influence and responsibility ; and he succeeded, maybe beyond his own early dreams and ambitions. The details of that business career many of you will know well, and only a few facts need now to be recalled. As a young man he went out to Ceylon in the employ of R. Gordon & Co. That firm later was merged in one of the leading brokers in Colombo—Forbes & Walker, and to them his gifts and talents were devoted. He was on the threshold of becoming their senior partner, and also Chairman of the Tea Trade Association of Ceylon, when his illness and ' home call ' intervened. Over 32 years were spent in Ceylon—years of hard work and conscientious service of his firm's interests, during which he endeared himself to all his large circle of friends and business associates. A man of alert intelligence, with a keen sense of humour and with those standards of integrity and fairness which worthily upheld the British way of life in the country which claimed his mature years. It is quite clear also that he endeared himself not only to his European friends but to the Ceylonese with whom his business brought him into close contact. He knew Ceylon and its people and he became one of the most highly respected members of the English community there. In a quiet and unobtrusive way he took his part in the community life : a man of culture and a voracious reader he looked after the interests of the Library at the Garden Club, and served on the Committee of the Colombo Club. His youthful prowess on the athletic fields was continued abroad and I understand that he once captained the Ceylon Hockey Team in a match with India. But all this, estimable and pleasant to recall though it be, leaves the major interest of his life still unfolded. The word which most nearly yields the secret of his steadfast and faithful life—is that of ' Home '. Let one who knew him intimately speak—" Just prior to his death Denis and his wife Kathleen celebrated the 25th anniversary of their wedding. To his many friends gathered together on the occasion Denis paid a great tribute to his wife. They had enjoyed 25 years of perfect happiness and her devotion to him and their four children had been an inspiration to them all ' A little over two years ago illness brought him home and when allowed to return to Ceylon he had been warned he would have to live quietly, but the last year proved more than he could take physically, and retirement from active business bad to be contemplated when he was at the very summit of his influence and business leadership. So that be was practically still in harness when the Home Call came. For this he was ready and the end of this stage of Life's pilgrimage was calmly faced despite the handicap of failing sight and physical weakness. " Moreover ", says St. Paul in a familiar passage, " it is required in stewards that a man be found faithful ". As I have listened to his friends' testimonies I have come to the conclusion that that final word would aunt up the life of Denis Malcolm Mackie. A life of faithful service, fidelity of character. integrity of purpose, loyalty in friendship and supreme devotion to his home. And so today we pay tribute to the worth of a good man, and to something that though we cannot adequately explain it, we know lives on. For this faithful life of service : for the good he was able quietly to accomplish for his fellow men : and for those finer gifts in comradeship and affection we lift up our hearts in thanksgiving to Almighty God, and we remember His word :—" In the way of righteousness is life and in the pathway thereof, there is no death ". 1 5They were actually married on 7-4-54. 3In the depression of 1932 J. K. Speer's services were discontinued when retrenchment became imperative. He then went home and joined the Bank of England who were taking on additional staff to cope with the War Loan conversion scheme. After 6 months he rejoined his old Tea Firm of Joseph Tetley & Co., Ltd. and from there in 1934 he proceeded to Ferguson Hotness, a subsidiary of Brooke Bonds. He returned to Ceylon and R. Gordon & Co. in January 1935. 14 HISTORY OF FORBES Sr WALKER, LTD. Duggie ' Learmond arrived in Ceylon in 1926 and joined R. Gordon & Co. from being Manager of the P. & 0. Bank on December 1st 1927, and took over their Exchange Department from Spencer Lovell. In this sphere he gained for himself the reputation of being by far the most able Exchange Broker of all Exchange Brokers past and present. Thus when the merger took place, he naturally assumed charge of the joint Exchange business. In addition he took over the dealings and work connected with the Government Securities section of the Share Department. It was about this time that this Department began to expand considerably as a result of a quick succession of Government Loan flotations, and the establishment of the Central Bank. It was largely due to his close and personal contact with this Institution and to the grasp that he had on the Loan market, that we came to be regarded as the official Government Brokers. He was also mainly instrumental in finding his own successor—S. G. Williamson, late of the Chartered Bank and now a Director of our Company. He retired as from 31st March, 1952 at the same time as ' Wilf ' Adamson, and on a similar pension payable on a diminishing scale over a period of 15 years, and he and his very delightful Scottish wife Peggy are now settled in Edinburgh. A son by his first marriage is in the Hongkong Bank and presently stationed in Colombo. Latterly the Learmonds lived at No. 2, 6th Lane, Colpetty. When they left the Firm took over a fresh lease of the premises and the writer became the first occupant. A little later the Firm managed to get a similar lease of the house next door—No. 4, 6th Lane, which is of identical size and design and owned by the same lady, Mrs. Maud Peiris. This house is presently occupied by the Pelly Frys. A history of R. Gordon & Co. would not be complete without some reference being made to the old established firm of 3J. J. Vanderspar & Co. R. Gordon & Co. were the brokers. It was a useful connection as this firm operated very extensively and almost continuously in shares. In fact, they could rightly claim to be jobbers in a market which has never had jobbers. The partners in the firm were George and Edgar Vanderspar, both first-class ' all rounders in all forms of sport in their young days. Edgar was a very human and pleasant gentleman and generally placid. He was married happily to Lorna Boustead, years younger than himself, and their son is now a Director of Boustead Brothers and has taken the name of Boustead. George had married a sister of Robert Meaden but they lived separated for most of their lives and she rarely, if ever, came out to Ceylon. The saying went that, " if you scratched Edgar you found George " but the writer never felt this. George was the most cantankerous, vitriolic old gentleman that could be found anywhere, but he certainly was a character ! Those in R. Gordon & Co. who had to sell his rubber for him or deal for him in shares must have been possessed of " the patience of Job " ; the writer's friend, " Mitte ", was one of them ! Some of the people th the firm were never permitted to hold converse with him, so it is much to the credit of those who were in his favour, such as Lermitte and Mackie, that they were able to hold down the connection for all those years. Edgar was a friend of the Drury family ; George was not. He had had a row with the writer's father years previously and he had no liking for Forbes & Walker. He disliked " Suds " and Ossie ' and always referred to the latter as " that rude fellow " ! " Walks " he called " the bald-headed bandicoot " I His arch enemy was his brother-in- law, Bobbie Meaden, in E. John & Co. ! When George was out of Ceylon Edgar started to deal with the writer in shares in a small way and, when George returned, this connection was kept up for a time, until on one occasion, when George was making war on a particular company (in which Drury senior held shares), endeavouring amongst other things to get the unfortunate superintendent sacked, he asked the writer for a proxy from his father in his favour. The Agents, realising that trouble was-forthcoming, also proceeded to collect proxies and they collected Drury senior's proxy from the writer ! The meeting duly took place with lawyers on both sides and " Ossie " Forbes attended representing the Company's brokers. It was at this meeting that " Ossie " narrowly escaped injury from a missile (inkpot or paper weight) hurled at him across the table by the enraged George His motion was lost and George demanded to scrutinize proxies ; amongst these was one signed by the writer on behalf of his father in favour of the Company's Agents. From that day forward all Forbes & Walker's connection with the firm of J. J. Vanderspar & Co. ceased George made it a habit to attend company meetings with the object of making a nuisance of himself. It has always been customary for the senior of Forbes & Walker to attend the Uplands Tea Company Annual General Meetings. There was a famous

7 For history dating back to J. J. Vanderspar & Sons, Galle,(sss " Mercantile Lore " chapter on J. J. Vanderspar 6. Co., page Is.) HISTORY OF FORBES & WALKER, LTD. 15

=occasion when Sudlow rose to propose a vote of Rs. 5oo•oo to the Joseph Fraser Memorial Nursing Home. This was quite sufficient excuse for George to leap up, point his finger across the table at " Suds " and shout out, " I oppose it ; in fact I oppose anything that man proposes ". Nevertheless the vote was duly passed ! With the passing of Edgar and George the business came to an end and what was left of the agency and goodwill was taken over by Carson, Cumberbatch & Co., Ltd.

INCORPORATION—FORBES & WALKER, LTD. The next big change of historical importance took place on 1st April, 1948, when the firm, which had been incorporated as a private Limited Liability Company on 13th January, 1948, began trading as Forbes & Walker, Ltd., the original directors and founder members being :- N. D. DRURY R. H. HORNE J. W. E. ADAMSON D. M. MACKIE A. D. LEARMOND T. KANE G. N. de ST. CROIX (J. K. SPEER and A. J. PELLY FRY were commissioned assistants and D. S. HUTCHESON was appointed Secretary to the Company.) The need to convert to a limited company arose, as it was generally considered advisable from an Income Tax and Profits Tax point of view and very largely as aiprotective measure, to form a business association with London Tea Brokers. The firm .of E. John & Co. had linked up with W. J. & H. Thompson & George White & Co. (London brokers) on 1st January, 1948, and became E. John, Thompson, White & Co., Ltd. As a consequence of this link they had obtained the selling of many London marks from us that were sold by their London connections in Mincing Lane. Robert Horne had already prepared the ground for similar action by us but, if the loss of business was not to spread, the need for speedy action arose. H. D. Bradshaw of Wilson, Smithett & Co. was in Ceylon at the time and the writer was on leave in England. Through Dorman Bradshaw, Robert Horne reached a basis of agreement at this end which involved bringing in as many London brokers as possible, whilst the writer entered into negotiations at the London end and was back in time to discuss all the legal formalities which had been drafted by our lawyers, Messrs. F. J. and G. de Saram, in Ceylon. The London brokers (or London " circus ", as we rudely refer to them) who are now Ordinary shareholders in this Company (as opposed to the Forbes & Walker Directors, who are Management shareholders), are :- MESSRS. WILSON, SMITHETT & CO. SANDERSON & CO. „ Gow, WILSON & STANTON, LTD. „ CHARLES HOPE & SON LLOYD, MATHESON & CARRITT „ T. A. IC.ERR. & SON „ EVART MACCAUGHEY. & CO., LTD. With Messrs. W. J. & H. J. Thompson and Messrs. George White & Co. linked to Messrs. E. John & Co., this only left out of the picture Messrs. Thomas Cumberlidge and Inskipp & Hancock Brothers, besides Bunting unconnected and with Bunting unlikely to re-open as a first-hand broker. It is a matter of interest to note that the father of J. B. W. Grigson (a son of T. S. Grigson of Messrs. George Steuart & Co., an uncle of the writer's) who planted in Ceylon and later joined the firm of Messrs. George Steuart & Co., but retired early on account of ill-health, married a Gow, the daughter of William Gow, the founder of Gow, Wilson & Stanton, Ltd. Our founder, James Forbes (senior) was trained in the office of Gow, Wilson & Stanton and came out to Somerville & Co., as has already been mentioned, so that the link that that firm had with the London brokers was finally severed in 1948 when they became allied to us, for in 1911 Patrick Gow, of Gow, Wilson & Stanton, Ltd. became the senior partner of the local firm, which then became Gow, Somerville & Co., later in 1925 Somerville & Co. and in 1929, on the death of Pat Gow, Somerville & Co., Ltd. 16 HISTORY OF FORBES & WALKER, LTD.

A further point of interest is that the firm of George White & Co., originally had some link with the Colombo brokers Messrs. Bartleet & Co., which must have been finally broken as from 1-1-48. The name and style of the original firm of Bartleet & Co., Ltd. was George White, Bartleet & Co., and, to quote from Sir Thomas Villiers' book " Mercantile Lore ", George White, Bartleet & Co. established themselves in business in 1904 and the partners were George White & Co., London, and Wilson Bartleet, Colombo, late of Delmege, Forsyth & Co. That partnership represented the first introduction of the direct London brokers' interest in Colombo business ". It was revived in 1948 for the reasons already stated ; to continue from Sir Thomas Villiers' book, " the advantage to both firms which was anticipated from interchange of business did not materialise to the extent expected, and in 1912 the Colombo brokers bought out George White & Co., the partnership was dissolved and the local firm appeared as Bartleet & Co. " Forbes & Walker must have also been thinking on the same lines, for it was probably about this time that the writer's father had a seat in the office of iLyall Anderson & Co., Philpott Lane, probably the firm's oldest London connection. Recently the agency side of the business was separated from the share side which became Lyall Anderson & Whitehorn, with whom we still have correspondence. The experiment of having a London office obviously proved unprofitable and, of no particular advantage as it only lasted a very short time.

The authorised capital of Forbes & Walker, Ltd. was Rs. 2,000,000'00 in :- 14 Founders' shares 175,000 Management shares 249,86o Ordinary seares. The issued capital was Rs. 1,o5o,i4o.00 divided into :- 14 Founders' shares (carrying pension rights only, two to each partner) • Rs. 140.00 100,000 Management shares of Rs. 1000 (Rs. 2.5o paid) . . „ 250,000.00 50,00o Ordinary shares of Re. roo (Rs. 2.5o paid) (all held by London brokers) „ 50,000'00

Rs. 300,14o.o0

Unlike the set-up with E. John, Thompson, White & Co., Ltd. the Ordinary shareholders have no say in the management of the Company. In the case of E. John, Thompson, White & Co., Ltd. the senior Directors of the two London firms are Directors of the Company. To split brokerage between members of the Colombo Brokers' Association with outside brokers is a definite infringement of the rules, so how Messrs. George White, Bartleet & Co. and Messrs. Gow, Somerville & Co. arranged their affairs after the rules of the Colombo Brokers' Association had been framed, on their links with London, is not known but, in the case of Forbes & Walker, it was so arranged that Ordinary shareholders' dividends should bear some relation to the quantity of London tea handled by the Company, when so much more London tea was sold on this market. It was not, however, found possible to segregate' tea business from other business, thus during the prosperous years following the second World War, London shareholders may have gained more benefit than was at first envisaged, from profits earned by the Riibber, Freight, Shares and Exchange Departments, but this was a natural outcome of the tie up ' which has proved to be a very happy one. There is an agreement with London that, should the situation ever return to normal in-so-far as the selling of Tea is concerned, or should more Tea be disposed of in London than was sold there pre war, the position becomes adjusted. On the formation of Forbes & Walker, Ltd. all pension committments of the joint firms of Forbes & Walker and R. Gordon & Co. were taken over by Forbes & Walker, Ltd.

The 14 Founders' shares, 2 shares to each of the seven Directors, gave founder members the right to a dividend for a period of ten years from retirement and, on the death of a holder during that period, the widow retained one share. This arrangement was found to have obvious disadvantages, both from a death duty point of view and from the point of view of taxation. For a dividend was taxable and the shares would be assessed for death duty. Thus it was resolved to repay those shares and reduce the capital by that small amount and to substitute contractual pensions on retirement which, under the Double Tax agreement with the United Kingdom, would not be taxable in Ceylon if remitted to the U.K. The pension originally provided was at the same time increased and the life extended from 10 to 15 years on a reducing scale for each 5-year period, with safeguards to provide that, if the profits of the firm fell below a certain figure, the pensions for that year

'This is what the writer always understood from his Father, but neither P.N.S. or O.B.F. have any recollection of it. O.B.F. states that he spent hours at work in L. A. & Co.'s office when on leave in 1912, trying to solve some of our scrip problems from the igio boom and he imagines that W. E. D. must have been doing the same sort of thing. HISTORY Or PORBES & WALKER, LTD. 17

abated but would be made up again in a later year if the position recovered itself. The first two Directors to retire under this scheme as from 1-4-52 were J. W. E. Adamson and A. D. Learmond and from that date J. K. Speer and A. J. Pelly Fry became Directors ; A. J. Pelly Fry's father was at one time in Carson & Co., Ltd. In October, 1916, there were discussions about turning the firm into a Limited Liability Company and it is interesting to note that the proposed capital was Rs. 502,000.00, 5 lakhs of which was to have been in 6% non-cumulative preference shares and Rs. 2,000'00 in Pounders' and Management shares of Re. roo each.

EARLY HISTORY The firm originally banked with the Oriental Banking Corporation. This account was apparently closed on 13o-6-1883 and the account transferred to the Bank of Madras. The 1910 Rubber boom was mostly concerned with sterling shares. It is believed that James Forbes (senior) went to the Hongkong Bank in London to fix up about exchange which was then assuming much larger proportionst but the story goes that C. S. Addis, the then London Manager, was not very obliging, so he transferred his own account to the National Bank of India, Ltd. 0. B. Forbes was at that time in the Hongkong Bank London office and still banks with that bank and so did Forbes & Walker in '1909 when " Ossie " arrived in Ceylon, but 2A. A. Wheelan, the local Manager, got alarmed at the size of the overdraft early in 1910 and thus the account was transferred to the National Bank of India, Ltd. where it has remained ever since. On the amalgamation with R. Gordon & Co. an account was opened at the Chartered Bank of India, Australia and China as that Firm had previously banked with them. During the prolonged bank strike in 1946 the firm opened a third account with the Bank of Ceylon, the only bank not to go out on strike and Forbes & Walker was used during this period as a clearing house for share settlements. The firm's original lawyers were Messrs. Julius & Creasy and 0. B. Forbes thinks that a change over to Messrs. P. J. & G. de Saram was made before he arrived out, for they dealt with the firm's aftermath 1910 boom cases and the R. H. Williams (Dodwell) case. The reason for the change from Julius & Creasy is not known but presumably there was some disagreement. A draft deed of partnership when Sudlow joined 1-1-19r1 was drawn up by Julius & Creasy. This does not appear to have been signed by anyone ! The original office was at 28, Chatham Street and rented from Charles Grant at Rs. 40.00 per month. For purposes of comparison, the present rent of the offices on two floors in Prince Building is Rs. 1,83o per month, but in July, 1882, a case of whisky cost Rs. 24.0o against the present-day cost of about Rs. 400.00 ! Besides the two partners the office staff consisted of a boy at Rs. 7.0o, a cooly at Rs. 1o•oo and a Punkah cooly at Rs. 4.00 per month. When the writer arrived in 1922 assistants bought or hired their own rickshaws. The writer's was bought from Cave & Co. at a cost of Rs. 400.00, and he paid a rickshaw cooly Rs. 25.0o per month, whose duties, besides being whole-time on Fort rounds, included bringing him in to the Fort in the mornings and taking him home again in the evenings, when quired to do so. Today rickshaws are still used by brokers on their daily rounds but they are hired on firm's account and a rickshaw cooly's pay is about Rs. 65.00 per month. The firm's monthly salaries bill exclusive of Directors and all members of the executive staff (numbering 20 in all) averaged Rs. 23,123.00 per month for 1952-53 including Bonus. On 1-7-1882 the office was moved to some building owned by Whittall & Co. at a rent of Rs. 83.33 per month and by January, 1884, the monthly wages bill had increased to Rs. 53.26. The office changed again on 1-2-1886. Rent Rs. 125.00 per month. It was believed to have been situated over the original old office in Chatham Street and the writer has very dim recollections of visiting his father on occasions in this office as a child about the year 1905 or 1906. The firm moved to the present site in Harrisons & Crosfield, Ltd. Prince Building, Prince Street, early in 1911. The building was not actually complete at the time of occupation. It had been the custom to keep teas consigned direct to the firm for sale in a " godown " under the office in Chatham Street, but after the move to Prince Building, produce handled direct was consigned to Whittall & Co.'s " Mortlake " Stores and this

'The Bank was actually forced to close down, but the firm probably lost nothing as the account had been transferred In time. The Manger was P. C. Oswald, 0. B. P.'s God father. 2 0. B. P. commenting on this change over of Bank Accounts; states that during the 1910 boom, the Bills of Exchange ran into 15-20 lakhs each way, each weekly mail and the difference between what it came out at and what it went home at, was almost in pence and certainly not in 1/32nds. The fact that the H. K. & S. Bank were not getting the Exchange was probably the real reason why ' Smiler ' Wheelan made a fuss about the account. /8 HISTORY OS' FORBES & WALKER, LTD. arrangement must have continued for many years, for it was not until the amalgamation with R. Gordon & Co. that the firm rented storage accommodation from 'James Finlay & Co., Ltd. at Ambawatte Mills. The first record of a telephone being used was on 1-9-1883, but the record of the number has been lost. The charge for 6 months was Rs. 87.5o, and it appears this amount was paid to J. M. Robertson & Co. In the last audited accounts of Forbes & Walker, Ltd. the annual telephone bill was Rs. 7,377.65 and is likely to be considerably more in the current financial year, as the charge for a local telephone call was increased from five to ten cents in the last Budget. The figures for brokerages for the first three years trading of the partnership are interesting :— Year Brokerages Charges 1-8-1881 to 31-7-1882 Rs. 12,19ro1 Rs. 1,992.75 1-8-1882 to 31-7-1883 „ 15,521.67 „ 3,098.29 1-8-1883 to 31-7-1884 „ 16,854.11 „ 3,452'88 For the month of August, 1881, the total brokerages received amounted to Rs. 953.62. Charges were Rs. 259.95. A sum of Rs. 5o.00 was paid into the Bank to start a capital account and each partner drew Rs. 32r84, which in those days was probably regarded as wealth ; today it would not even cover a month's bungalow rent ! Before H. H. Kirton came out there were no actual books kept. The rough cash book for brokerages received and charges paid out was kept from the start of the firm and the first book used from 1881 to 1888 is preserved—somewhere ! 0. B. Forbes does not remember seeing any bank pass books when he first arrive dt At the time the brokerages for the shares were taken off the accounts and account tales and payments made and received and were marked off in the press copy books and in the share registers. In 1909 and 1910-11 when he was out in Ceylon, James Forbes (senior) added up the " score " every Sunday morning and then went to the Colombo Club and " had one " ! 0. B. Forbes does not remember how payments for Tea and Rubber were watched, but there must have been some register. • It is said that from 1909 and almost to 1912 (possibly before) no stamps were bought at the Post Office. The firm dealt through a private stamp dealer, a Mr. Pelpola, with a desk similar to that of a money changer, who had his accustomed stand below the Chatham Street office. He granted a substantial discount on all transfer stamps purchased (they were then of a special adhesive type) and this discount was sufficient to cover all other postages ! The old system of press copying letters was changed over to an up-to-date filing system by the present accountant, D. S. Hutcheson, after the firm started to function as a Limited Liability Company.

BUSINESS HISTORY (a) TEA— James Forbes (senior) being the first qualified Tea Taster to start up as a broker laid the foundation stone to a Tea Broker's business in Ceylon ; consequently, on the change- over from coffee to tea, Forbes & Walker was able to build up and develop by far the largest tea broking business in the Island, which is maintained to this day, thanks very largely to the eminent men who followed in the founder's wake as qualified and trained experts and tasters, about whom mention has already been made in these notes. A list of the rapid flotation of local tea companies from about /900 onwards may be found in the chapter on " Agency " pages 28 to 3o in " Mercantile Lore ". The firm are the selling brokers for the majority of these companies, which are still in existence today. In fact they were first in the field from the time that proprietary-planter ownership passed to public ownership. In the office this day there are no less than eight Directors and Assistants who have had some training and experience in tasting and the marketing of tea, some, of course, considerably more than others, but any one of whom can,usefully be employed in the Department if called upon and most of them can auction tea from the bo3. A considerable part of the fortunes made in Rubber were ploughed back into Tea and William Henry Figg (to mention one eminent business man in particular) the senior partner of Whittall & Co., floated the Uplands Company in 1910 (still the largest local Company in Ceylon today) and Forbes & Walker have been the Company's Brokers

'This was amicably arranged with Whittall & Co., who could not provide us with sufficient accommodation and really needed the space themselves. HISTORY OF FORBES tk WALKER, LTD. 19 from the beginning. There was a close and very friendly liaison between James Forbes (senior), W. E. Drury and W. H. Figg and this firmly established traditional connection was carried on by his son and successor to the business, the late Sir Clifford Figg, and by his successors. The firm also had many other and invaluable connections, which are continued to this day. Mention should be made of Walter Shakespeare, original senior Director of Carson & Co., Ltd., who, after his retirement, had a regular date with James Forbes (senior) at the Oriental Club for luncheon, where a special table was reserved for them and other prominent Club members. • It is unfortunate that the writer has not been able to ascertain from any records when public auctions Were first started at the Ceylon Chamber of Commerce, but it is believed to have been at least 5o years ago. It might have been in 1902 for in that year the leading broking firms became members of the Chamber, including Forbes & Walker and Gordon & Wilson. Representations for membership had been instituted previously for, on 21st November, 1900, F. W. Waldock (who later joined his brother H. M. in the firm of Keell & Waldock) as secretary of the Chamber, addressed letters to the Chamber of Commerce of Calcutta, Bombay and Singapore which started as follows :- "Hitherto it has not been. customary for our brokers to be members of this Chamber, nor have they founded an association of their own. Owing to the recent rapid growth of this city, they now feel the necessity for some action and my committee have been approached for their views The average price paid for Tea in the first half of 1901 was 31/28 cents per lb. (according to Chamber records), this presumably was for Teas sold in public auction. Unfortunately, Forbes & Walker's Tea catalogues previous to 1919 appear to have been destroyed. But Messrs. Keell & Waldock very kindly loaned the writer a bound volume labelled " Tea Circulars—Keell & Waldock 1905 ". The entire contents happen to be Forbes & Walker's weekly Tea circulars for the whole of that year ! So apparently we were the only firm of brokers to publish a circular, which bears a marked similarity to the present day Weekly Tea Market report published by the Colombo Brokers' Association. The first of these circulars is dated 12th January, 1905 and numbered 698 ; the last 28th December, 1905 No. 746. No. 1 circular, therefore, must have been published some 14 years previous which takes us back to the year 1891. Circular No. 699 of 19th January, 1905, tells us that the total exports from Ceylon for 19p4 were 158,183,330 lbs. as compared with 151,011,454 lbs. in 1903 and that the average price paid for the year 1904 was 36 cents against 38 cents per lb. in 1903. In the present year of grace, 11953, and 5o years later, the total exports from Ceylon will be more than double that quantity. The actual size of Forbes & Walker's catalogue is not shown in these circulars, but in that year the average size of the offerings was anything from 15,00o to 20,000 packages or between I and 14 million lbs. a week. Throughout the year a good deal less was sold than actually offered, so there must have been a large number of taken-outs ", most of which may have been shipped to London or re-printed week after week or, of course, sold privately during the week. In the year 1953 2574 million lbs. passed through the auctions, of which 104 million lbs. were sold by Forbes & Walker, Ltd. The average price was Rs. 1.91. The largest sale on record to date was on 17th April, 1950, 81 million lbs. of which Forbes & Walker's share was just over 4 million lbs. and the average price for that sale was Rs. 2•01. R. H. Horne sold the large breaks of our catalogue, which was the largest catalogue ever sold by one broker up to that time. He sold the 1,205 breaks in question between 3-10 p.m. and 6-45 p.m. on that day, at an average speed of nearly 6 lots per minute. Our smallest catalogue on record was that of zoth January, 1947, after the end of bulk purchase and the resumption of Colombo sales by public auction ; this was one lot consisting of 1 large break of 1,000 lbs. sold at an average of IRs. 3.05 at the sale of 24th February (a month later) the total of our catalogue was 2,328,460 lbs. sold at an average price of Rs. 1 .68. As at that time the record ' low ' and ' high ' quantities bad not been broken, the outside covers of the two catalogues were framed alongside each other and hung up in the office. As a result of over-production of • tea in the early thirties and the slump that inevitably followed, the International Tea Restriction Scheme was introduced early in 1933, regulating exports of tea from, and placing a limitation on the extension of tea areas in India, Ceylon and Java. , The actual Export Figures were 3351 million lbs. 2 This over Rs. 3.00 average was beaten in the sale of 21-11-49 following the devaluation of Sterling, when F. & We catalogue averaged Rs. 3.21. This average was again beaten in the present year----Rs. 3.58 for the sale of 30-11-54. 20 HISTORY OF FORBES & WALKER, LTD.

The first restriction agreement was for a period of five years, after which it was extended by periods up to 31st March, 1955. The regulation of export for all these periods was, and remains, based on the maximum exports from the producing countries in any one of the three years 1929, 1930 or 1931. The exportable quota for 1952 was fixed at 135% of basic standard production and remains the same for 1953. Africa, which has become quite a large producing factor since the introduction of the scheme, is not a participator therein ; nevertheless, the scheme has worked well throughout the years and has ensured a measure of control over production. Prior to the outbreak of the 1939-45 war and up to the over-running of the Dutch East Indies by the Japanese, the exportable quota was always fixed at below i00% of the basic figures. During this period it became necessary to issue estates with " coupons " covering the individual quota it was permissable to export and as, in Ceylon, these were made transferable, a thriving but speculative marked developed in them. Subsequent to the war consumption of tea has risen to such an extent that the exportable quotas have always been well over the i00% level. During the early stages of the last war a system of bulk buying of tea was introduced and, for a time, this ran concurrently with an open market in Colombo. The last auction held during the war was on the 14th September, 1942, and sales were not resumed until the loth January, 1947, just after bulk purchase finally came to an end. During this four year period the British Government, through the medium of the Ceylon Tea Commissioner, purchased the whole of the island's tea crop at a figure based on pre-war prices ; each estate receiving a separate and individual price on a similar basis. The Colombo brokers became employees of the United Kingdom Ministry of Food and their services were utilised for the inspection and valuation of all teas normally sold on this market. They were remunerated at a rate of 72} cents per package and the total amount so received was allocated to the various broking firms upon a percentage basis roughly in accordance with the amount of tea sold by each individual firm prior to the war. In this connection the writer's father paid a visit on behalf of the Colombo Brokers' Association to the United Kingdom Ministry of Food, which entailed a long journey to Llandudno in Wales, in order to discuss' the rate of brokerage payment and to arrange, if possible, fair and advantageous terms. Forbes & Walker acted as Secretaries for the Brokers Tasting Panels and kept records of all tea inspected and valued. These statistics were of great value to the Tea Commissioner's Department, which looked to this firm for vital information and considerable Assistance at all times.

(b) RUBBER— From the beginning of our history until this day, we have been (sometimes by a narrow margin) the largest brokers in the field of tubber, which industry must have started up some time before 1900. At the ttirn of the century some 2,000 acres only in Ceylon were under cultivation, but from that time onwards large areas of the country began to be developed in the scramble to compete for a product which was going to make vast fortunes for some and ruin many others, for, throughout history, this has been the most speculative of commodities and has undergone booms of unprecedented heights, and slumps, which spelled disaster and ruination, as may be judged from a few instances of price fluctuations which are given in a later paragraph. Chapter 7, page 38, of " Mercantile Lore " shows the develOpment of this ' low grown industry from early days of rubber. As with Tea, public weekly auctions were instituted at some far distant 'date and continued up till the second World War when all Ceylon rubber was contracted to the British Government at a fixed price. At these auctions the price of any No. 1 grades of crepe and smoked sheet were determined at the beginning of the sale and thereafter a scream went up from the buyers simultaneously bidding the one tip price ' and the auctioneer had to decide by a process of quick mental arithmetic whose turn it was ' and, if the sale for No. Ones ' was not considered fairly divided out, the wretched selling broker heard about it later ! A great deal of rubber was sold privately and public auctions were not resumed until some time after the second World War and then only for crepe and sole crepe, all sheet rubber being sold privately. From the beginning of 1953, all sheet rubber under a Rubber-for-Rice barter agreement with China is sold to the Government through the Rubber Commissioner at a price far above the world market price. As a result the bulk of the business previously handled by European shippers has been handed on a plate ' to Ceylonese, mostly newcomers to the Trade, in furtherance .of the policy-.of 100% , O. B. F. thinks that Rubber auctions started about 1912. HISTORY OP PORIIES & WALKER, LTD. 21 Ceylonisation of business. The agreement is for five years but how all this will work out in the end and how the question of price for both commodities is to be adjusted from year to year is a matter about which the writer would not care to make any 'forecast. It is, however, an indisputable fact that Ceylon is far behind other producing countries in the matter of re-planting. It is the writer's firm conviction that only those countries who can obtain the yields and produce the goods cheaply will be able to compete in the world's markets in future. Oidium leaf disease is now taking toll of all rubber producing districts in Ceylon, to which sulphur dusting or sulphur spraying appears to be the only answer, as ` chemical spraying ' of tea has proved to be the only answer, to ` blister blight ', but tea is able to finance these highly expensive preventive measures, whilst rubber is not. Nor, on the present narrow margin of profit, will the rubber industry be able to provide the necessary finance to continue to re-plant old seedling rubber with high-yielding clones, which is so vitally necessary, unless, of course, the industry is to enjoy another boom, which is not outside the bounds of possibility, considering that the fortunes of this commodity have been and will no doubt continue to be unpredictable. Going back to Forbes & Walker's Tea Circulars of 1905, it is interesting to note that, in Circular No. 725 of 27th July, 1905, for the very first time appears a rubber report which reads as follows :- " The local demand for rubber continues and, although the fine prices recently realised cannot at present be obtained on account of the drop in London and other markets, yet good ' biscuit ' is enquired for at a fair rate. Good ordinary ' biscuit ' has been dealt in during the week at prices varying from Rs. 4.65 to Rs. 4-9o, while worm ' rubber has realised Rs. 4.8o and ' scrap ' is quoted at Rs. 2.50 to Rs. 3-5o. " These prices today appear to be ' too good to be true ', when a large proportion -of Ceylon rubber is selling at below or very little above cost of production. Biscuit ' rubber was probably the first type of any importance to be produced in Ceylon and was -even represented in samples when the writer arrived in Ceylon in 1922. No. i ' biscuit ' was plain semi-opaque rubber of a thin and light texture and pale yellow produced in rounds '. ' Worm rubber was the original name for curly scrap ! Throughout history rubber prices, as with most other commodities, have been governed by the laws of supply and demand. The United States has always been by far the largest consumer and, by the large-scale production of synthetic in more recent years, has been able to govern and control prices to a very large extent. There have been two restriction schemes by which producing countries restricted their crops when the industry was faced with ruination ; the first was known as the " Stevenson " voluntary scheme, which operated from 1922 to 1928. One of the largest producing countries did not enter this scheme—the Dutch East Indies—thus, although it had the desired effect of putting the industry on its feet again, it meant that the Dutch East Indies had been subsidised at the expense of the other producing countries. A prerequisite to the second scheme was that all producing countries should participate. This was introduced in 1934 and came off in the early stages of the last war (1941) when the Allies needed all the natural rubber they could lay their hands on, with the Dutch East Indies and Malaya occupied. In 1933 the price of No. 1 sheet had dipped below cts. o8 per lb. Today, if we go below Re. 1.00, we are scarcely able to make ends meet ! The last rubber boom 195o saw the price at Rs. 3.00 and over, the highest since 1912. In that particular 1910-12 boom the price rose to 12/6d. per lb. in London ! The writer has scanned through Forbes & Walker's catalogues for 1920 unearthed from the Record Room and even in that particular year No. 1 Diamond Smoked Sheet fluctuated between Rs. ro5 and cents 45 per lb. with corresponding differences for No. r Pale Crepe and Sole Crepe. Forbes & Walker also have records of Ceylon's export figures from 1907 onwards, which are interesting. 1907 takes us back almost to the beginning of production, after making allowance for all planted areas to come into full bearing- 1907 . . . . 560,00o lbs. 1952 - • • • .. 206,243,976 lbs. 1942 . . . . . 250,722,600 lbs. (Peak year and year after restriction was removed.) {C) SHARES— The share side of the business must have been functioning as far back as 1896 or even before, as Forbes & Walker were one of the original members of the Colombo Share Brokers' Association founded in 1896, but it began to develop and increase in 1907.

'The price for 1954 has already been fixed on a lower basis, but still well above world parity. 22 HISTORY OF FORBES & WALKER, LTD. The 1910 rubber boom was mostly in sterling shares--shares from London being offered by overnight telegram and placed in Colombo in the forenoon so that replies to offers were received in London at the opening of business the following day, or on the same morning that telegrams were received in Colombo, Colombo being 51 hours ahead of London time. The volume of speculative business conducted between London and Colombo must have been pretty colossal for those days and the cleaning up that had to be done after the bubble ' had burst must have given the Colombo brokers much anxiety and sleepless nights as, with no proper system of book-keeping, the damage and losses could not be assessed until something big had come to light, such as the R. H. Williams smash, followed by the 'Dodwell case. This is no part of Forbes & Walker's history except to say that the brokers were, of course, involved ; Forbes & Walker being the largest share brokers, its founder and his unfortunate partners were heavily involved financially for a number of years afterwards in order that the firm's good name should not be impaired. The writer's father and those on the spot must have had a very worrying time during this cleaning-up process ('see footnote). All through the 1910 boom the firm were being drawn upon from London at 3 days' sight, for anything between fifteen and twenty lakhs every week. Mails from the United Kingdom arrived without 'fail on Saturday morning. The documents were generally received from the Bank before Forbes & Walker had accepted the bill. Work went on all Saturday and Sunday and there were occasion when W. E. Drury and others may have slept in the office, but champagne was cheap in those days and the money was rolling in, so they did themselves well at the G.O.H. when they felt in need of stimulant to keep them going ! The drafts were back at the Bank first thing on Monday morning. Credit was given in current account at once for them and thus a week's interest was saved. The sterling shares were all in the names of the London firm's nominees and some of the transfers are said to have been going backwards and forwards between London and Colombo for more than a year. Forbes & Walker's record-breaking year in local Company share dealings was the first year after the amalgamation with R. Gordon & Co., 1946-47. In that year the number of share contracts passed was 3 io,96o. The first and last contracts of that year are framed and hung up in the office today. When the writer first came to Ceylon the early morning share meetings were conducted in the verandah of the Mercantile Bank ; later the venue transferred to the Banking Hall of the Hongkong and Shanghai Bank. The mid-day call-over ' was conducted round the large table in Forbes & Walker's tiffin ' room. Much later, about 1947, when the Association's membership was increased to include several Ceylonese broking firms, the space provided in Forbes & Walker's room was no longer adequate, so all meetings were held in the •Committee Room of the Chamber of Commerce and today the ' call-over ' takes place there at 9-2o a.m. and the afternoon meeting at 2-3o p.m. (d) FREIGHT— Freight broking must have started in the very early days of James Forbes & G. C. Walker. Again to quote from " Mercantile Lore " :- " On completion of the Colombo breakwater and the transference of shipping to Colombo from Galle, Forbes & Walker adopted freight broking as a speciality and for many years had a complete monopoly and even to this day (194o) have the largest business in this connection ". During the first world war when space was short and difficult the firm's Freight Department were very fully occupied in allotting and arranging for space amongst their wide clientele and the services a broker could render to a shipper must have been invaluable. Rates of freight soared and, as the I% paid to the broker is calculated on these rates, the 'The R. H. Williams/Dodwell case arose from a practice, quite common in Colombo at the time—of paying personal debts by firm's cheques. It was -probable that anyone writing up a Cash Book, would not have paid the slightest attention to a cheque signed by R. H. Williams as Attorney for Dodwell & Co., going to the credit of R. H. Williams' personal account in the recipient's book. When the case was taken up by the Brokers, Dodwell's lawyers found an ' escape clause '. F. & W. having taken counsel's opinion, compromised and settled out of Court, so did the other Brokers with the exception of E. John & Co., whose senior Reginald John refused to be guided by the advice of the lawyers. This firm finally lost its case in a judgement of the Privy Council. If Reginald John had come in with the other Brokers, we should all have paid very much less, but, owing to his obstinacy and the high rate of Exchange then ruling, Dodwell's eventually got back all the money they had lost. 'Something of the same nature took place years afterwards when, as a result of tea restriction, a market was made in tea coupons ; (see page 20) this ended up in a heavily over-sold position for which some brokers 'were largely responsible. There was an escape clause in the form of contract which protected the broker to some extent ; nevertheless, the buyer looked to the brokers to honour their contracts. In the end some form of compromise was eventually worked out but Forbes & Walker, who fortunately never handled much of this business, emerged unscathed with some small financial loss to themselves, but with their name unimpaired. 3This record was undoubtedly beaten in the 1910 Rubber boom when 0. B. F. thinks that the number of share contracts passed was between ra,000 and 13,000, but the majority of deals were in sterling shares. 4 Since these Notes were written the venue of Share call-overs has returned to Forbes & Walker's Board Room. HISTORY OF FORBES & WALKER, LTD. 23 Department must have done very well. It is not known exactly when the various shipping conferences came into being to govern and stabilise rates of freight and tonnage scale. They were certainly in existence long before the writer arrived in the Island. After the first war when space became much more plentiful and there were considerably more callers at this port, the brokers' job was to keep the peace with the shipping agents by apportioning out the cargo as much as possible, particularly to the United Kingdom. The firm had instituted a system of ' regular ' tea bookings, with regular United Kingdom fortnightly callers, such as the Bibby Line, P. & 0., Orient, Blue Funnel, Brocklebank and Harrison Line, etc. These bookings lapsed during the second World War and have not been re-introduced. The Freight Department has always needed a full-time man on the job and a young and active one at that ; competition has become so keen in recent years that two are employed in that department. (e) EXCHANGE— Prior to the establishment of banks in Ceylon, local merchants procured their supplies, of cash from India by means of " Chetty " traders, agents of large Indian houses from Madras and other towns of South India, who acted as bankers. They supplied the British merchants with cash for their Bills of Exchange on Madras, Bombay and Calcutta, which they remitted in payment for grain and other goods they imported to Ceylon. These drawings by the merchants were covered by bills drawn on London against credits or produce shipped from Colombo and were sent to their agents in India. This business was of a very simple nature ; there were neither telegraphs nor steamers. Sailing vessels, by means of which all correspondence was carried on, usually took 5. to 6 months to perform a voyage between England and India. , The time was reached, therefore, when it became obvious that, to further the advancement of commerce in Ceylon, the introduction of more enlightened and efficient means of financing trade was required ; thus, it was from this period that the establishment of banks in Colombo commenced. T. J. Anderson (Exchange, Freight and Produce Broker) must have been one of the first, if not the first, in the field as an exchange broker and, with his banking experience behind him, was able to lay the foundation of a very useful exchange business, which was fostered, and increased by " Sidey " Gordon. Thus, as a result of the amalgamation with R. Gordon & Co., the firm of Forbes & Walker, Ltd., enjoys by far the largest exchange connection. Forbes & Walker on their own had some useful accounts ; but the business was small in relation to that possessed by R. Gordon & Co. After the amalgamation (and as already mentioned) " Duggie " Learmond, with his previous banking experience, took over the combined Exchange Departments and S. G. Williamson, who came from the Chartered Bank, has since stepped into his shoes. With the development of a market in Government Securities, the main work in connection therewith passed to the officer in charge of Exchange, who keeps in very close contact with the comparatively young Central Bank of Ceylon, now a great power in the land of banking and finance. In the days of Forbes & Walker, exchange was normally handled by the No. t, coupled with shares and possibly coconut oil as well, so he was always kept very busy. That was the state of affairs when the writer came to Ceylon. Later the accountant, " Narry " Kirton, took over exchange and coconut oil, but others have lent a hand in the department at various times, including the writer, G. N. de St. Croix, J. W. E. Adamson, D. S. Hutcheson and probably others, but, although in these days of tied' rates it may all seem cut and dried, there is a great deal more to being a really good exchange broker than meets the eye and experience has taught us that a banker with experience is the only person who is really qualified for the job, for he knows his subject and can talk it. In 1922, when the writer sat opposite to " Walks " near the entrance doing freight, first Drury (senior) and then " Suds " were those who were trying to cope with three distinct jobs at once. There was then an " open " market in exchange and, in the case of bills or remittances, it was invariably a question of getting the finest rate for your client. The writer so clearly remembers " Suds " entering like a whirlwind and shouting for a string of telephone numbers from the moment he crossed the threshold of the office ! The telephone exchange board immediately got into action and anybody else who happened to want numbers were ignored until the furore had abated ! It was the custom for anybody in the office to shout to the operator for numbers they wanted from their respective desks and one wonders how those poor operators kept their sanity ! But they did, and one in particular, Van Twest, a burgher (still a pensioner of the firm) survived for many years 24 HISTORY OF FORBES & WALKER, LTD. until he begged to be taken off the job as it was upsetting his balance and hearing r Today two female telephonists are employed on the switch-board, but things are not quite- , the same, although even they are quite hardened to abuse, but at least they are not shouted at and take their directions over the " inter-corn " ; much the same state of affairs Pxisted on the floor below with " Sidey "- Gordon when rates were moving. James Forbes (senior) on his visit in 1922 made his last two contracts (Exchange contracts) dated 7-3-1922, numbered 41/5003 and 41/5004. Eastern Bank sold to Carson & Co., Ltd., T/T 9,000 at exchange 1/3.11/32nds and National Bank to Carson & Co., Ltd., T/T £lo,000 at exchange 1/3.11/32nds ; both contracts are framed in the office today. The rate of Exchange with sterling has for many years been pegged around 1/6d to the Re. roo, but in the past rates have been subjected to lviolent fluctuations and there was a time when the rupee fetched almost as much as 2/6d. This must have been a glorious time when, unfettered by the present Exchange Control restrictions, people could remit freely to the United Kingdom for their leaves or for other purposes and bring money back to Ceylon some years later at a much reduced rate ! Until 1949 when the United Kingdom devalued sterling the Ceylon rupee was directly linked to the Indian rupee. In September, 1949, Ceylon passed an amendment to the Currency Ordinance and fixed a gold value for the Ceylon rupee which linked it with sterling.

(f) COCONUT OIL AND SUNDRY PRODUCE— Having covered the ground of activities of brokers in general, and Forbes & Walker , -, in particular, there is not much else to add, except to say that, in the field of sundry produce, such as coconut oil, dessicated coconut, fibre, cocoa, cardamons and copra, Forbes & Walker have never had any large connection, but at one time and certainly when the writer arrived in Ceylon, Forbes & Walker were doing a brisk business in coconut toil, which shortly afterwards died out altogether as it passed into the hands of Ceylonese brokers. This tlik business was very lucrative, as brokerage was payable at the rate of Rs. 2'00 per ton, but it involved very speedy action and close contact with millers and buyers, who were restricted to a very small circle, and Forbes & Walker were cloSely connected with both sides. In fact they only had one real competitor in the field, and that was Messrs. Keell & Waldock. It was a " pet " of the writer's father and entailed early morning visits before breakfast to Vavasseur's and others, and practically all the business of the day was concluded by ' about 9-30 to 10 a.m. when several hundred tons may have changed hands.

'The following information was kindly supplied by the National Bank of India, Ltd., through their Bombay office. The rupee/sterling rate varied between z/4.5/32d and i/3•29/32d during the years 1900/ot to 191 3/1 4. During the latter years of the first World War it fluctuated between 44.7/8 and 1/3,r/32d. During the year immediately following the first World War there were violent fluctuations ranging between 2/4.7/8 and 1/3.06. These resulted from the recommendations of the Babington-Smith Committee, which suggested a ratio of 24d (gold) to a rupee, which in terms of sterling, worked out, at Sod to 32d. It was feared that the very high price of silver prevalent in India at the time might lead to the melting of rupee coins and hence the Committee recommended a higher ratio. But, after the Committee's report, world prices in general, and silver prices in particular, declined. Government were unable to maintain this ratio and exchange had to be freed. In the years 1 920-21 and 1921-22 there was no material change, but in 1922-23 the exchange rate declined to 1 5-1/16d and fluctuated between 19-9/32d and 15-9/32d, till 1 930/1. In 1 926 the Hilton Young Commission recommended a ratio of 18d. The Babington-Smith Committee was appointed in May, 1919, when the ratio was rod per rupee, with wide terms of reference to ensure stability. They recommended the stabilisation of exchange at 24d (gold) and that the Government should be authorised to announce, during periods of exchange weakness, their readiness to sell weekly a stated amount of reverse councils. These recommendations were accepted by the Secretary of State. The publication of the Report in February, 1 92o, coincided with a keen demand for remittances to London and steps were at once taken to maintain the new exchange rate of 24d (gold) recommended by the Committee by the offer of reverse councils at a rate founded on that ratio, allowance being made for the depreciation of sterling in terms of gold As shown by the dollar-sterling exchange. The rates for reverse councils offered by the Government thus varied from 27-29/32d (sterling) to 34-27/32d (sterling). The attempt to hold the rate at 24d (gold) was not successful and the Government thereupon tried with effect from the weekly sale on the 24th June, 1 920, to maintain it at 24d (sterling). This attempt also failed and was abandoned on 28-9-2o. The Government of India at this period were unable to contract currency in India at the pace at which world prices were falling_ All they could do was to avoid further inflation and to effect some measure of contraction. This was insufficient to arrest the falling tide of exchange, which early in 1921 fell below the low level of 15d sterling and 12d gold. The 24d ratio passed in 1 920 remained on the statute book and was ineffective for purposes of tender of gold to the currency office. By January, 1 923, the tide had definitely turned ; exchange recovered to i6d sterling, and showed a general tendency to move upward. It reached the level of 18d sterling in October, 1 924, at which time it was equivalent to about 16d (gold). From that time till March, 1926, the upward tendency of exchange continued, but it was prevented from rising above 18d by free purchases of sterling on the part of the Government. Meanwhile sterling was restored to parity with gold about the middle of 1925 and during the subsequent years the rupee has been in the neighbourhood of 18d (gold). In 1931 England went off the gold standard and rupee was linked to the pound sterling. The rate fluctuated between 18-5/32d and 1 7-2 3/32d till 1939 when the second World War broke out. The position has been stationary at 1 7-3 1/32d since then owing to the imposition of Exchange Control regulations. 20.B.F. has supplied the following information— Coconut oil was at one time almost completely in the hands of James Forbes. Forbes & Walker's hold on the- business gradually declined owing chiefly to an increase of speculation by indigenous elements. It was further killed by the dislike of many of the millers to pay the large brokerage charge and, having got the information from brokers, they proceeded to deal direct. Coconut oil is now the most Ceylonised of all Ceylon products. Forbes & Walker have never had a very large connection with local dealers. HISTORY OF FORBES & WALKER, LTD. 25

MATTERS OF GENERAL INTEREST

'COLOMBO BROKERS' ASSOCIATION—(from notes probably supplied by Sir Thomas Villiers).— In 1904 when the Association became the Colombo Brokers' Association, the following firms were the members of the Share Brokers' Association, the other firms at .one time in the 'Share Brokers' Association having by then ceased to exist :- MESSRS. FORBES & WALKER. ,) GORDON & WILSON. E. JOHN & CO.

IP KEELL & WALDOCK. t, SOMERVILLE & CO.

PP C. E. H. SYMONS—C. E. HASLOP, Hon. Secretary & Treasurer. Mr. C. R. H. Symons was elected a life member in 1904 and remained so until his death. Other Secretaries of the Colombo Brokers' Association were :- 1905 REGINALD JOHN. 1906 R. MEADEN. 1907 C. E. HASLOP. 1908 F. M. SIMPSON .(who was the first paid Secretary). 1912-1915 0. T. MACDERMOTT. 1916-1917 MESSRS. E. Join & Co. Mr. Arthur Duncum was elected as from 1st January, 1918, and he and his firm, now Messrs. Duncum, Watkins, Ford & Co. have carried on since. The earliest record of any Minutes of the Association were the " Minutes of a Meeting held at I•To. 19, Upper Chatham Street, on 30th April, 1904, at I p.m. " Those present were :— W: SouERvu,LE. JAMES FORBES. R. JOHN. D. HANNA. R. GORDON. F. W. WALDOCK. R. MEADEN. The last-named gentleman acted as Secretary and W. Somerville took the Chair. It was unanimously resolved to liquidate the Colombo Share Brokers' Association and to form a Brokers' Association with revised rules and bye-laws, the provisional rules and bye-laws being signed by the firms present. The original members of the newly formed Colombo Brokers' Association were MESSRS. FORBES & WALKER.

PP E. JOHN & Co.

PP SOMERVILLE & CO. KEELL & WALDOCK.

PP GORDON & WILSON. GEORGE WHITE, BARTLEET & CO. MR. C. E. H. Svmorrs.

Although there were individual firms of Brokers almost as soon as there was produce of any kind to deal in for export in Ceylon, there was no Association of brokers until 1896 when the Colombo Share Brokers' Association was formed. Share business had really started about r888 when several Tea estates were converted into Limited Companies. The Share Brokers' Association was carried on until 1904 when, with the growing volume of business handled in Colombo, the need for proper rules and regulations for the conduct of business had become apparent, and the Colombo Brokers' Association, as it now is, came into being. The original members of the Colombo Share Brokers' Association, established in 180 were :- Messrs. George Armitage & Co. „ E. Benham & Co. „ Forbes & Walker ,. E. John & Co. Somerville & Co. and the following became members :- 1896 Messrs. A. M. Gepp & Co. „ „ Moir & Co. „ T. J. Anderson [goo „ Gordon & Wilson (became Messrs. R. Gordon & CO. 1913) 1902 „ Keell & Waldock. The Secretaries (unpaid) of the Colombo Share Brokers' Association were :-1896 W. Moir ; 1897 C. B. Haslop ; 7902 R. Meaden ; 'goo C. B. Haslop. L 26 HISTORY OF FORBES & WALKER, LTD.

The member firms today (after various changes in style) are :- MESSRS. ABEYWARDENA & CO., LTD. A. & B. Sections.

I; BARTLEET & CO., LTD. do. B. E. R. COORAY & SONS. do.

7! FORBES & WALKER, LTD. do.

P E. JOHN, THOMPSON, WHITE & CO., LTD. do.

J ICE= & WALDOCK, LTD. do. & ABEYWARDENE, LTD. do. SOMERVILLE & CO., LTD. do. MULLER, WRIGHT & DE MEL. A. Section only. At the first Annual General Meeting held on the 6th January, 1905, W. E. Drury occupied the Chair and, from that date until 1924, he was Chairman for II out of the 19 years. F. N. Sudlow was Chairman for 1922, 1923, 1925, 1927 ; 0. B. Forbes for 1931, 1934, 1936, 1937, 1938, 1943, 1944, 1945 and part of 1946 ; R. H. Horne for 1951 and N. D. Drury for 1952. The first set of rules governing share transactions appear to have been adopted in 191o. They were amended in 1925, again in 193o and 1937 and they are in the process of being completely revised in the present year. In 1905 the Association was first concerned in the Merchants and Brokers agreement, about which more will be written later. At a General Committee meeting held on the 5th January, 1912, the Association was divided into two sections—A. & B.— A.—Produce and General business, entrance fee to remain at Rs. 1,500.00 B.—Stocks and Shares. In addition to the foregoing entrance fee, no person or firm could be eligible for membership of B section until he or they had supplied two or more guarantors acceptable to the Committee, for such amounts as would aggregate to Rs. 3o,000.00 as security against any loss which members of the Association might suffer at his or their hands. This surety was in later years raised to Rs. Ioo,000.00. In 1912 fortnightly share settlements were introduced. The following is the order of age of the Brokers who were first members of our Association as listed on the bottom of the previous page. The Ceylonese member firms only joined our Association in recent years :- 1878-1E. John, Thompson, White & Co., Ltd., when Edwin John started as Produce and Exchange Broker, 19, Upper Chatham Street. The firm can actually trace its history back to George John, Bill Broker, who started up in 1865 ; in 1876 it became John Bros. Co., Colombo. and Kandy and finally E. John in 1878. Thus this by far the oldest broking establishment in Ceylon today. 1878—'Somerville & Co., Ltd. After various vicissitudes the firm bears the same name and style today. Started by William Somerville on the failure of the firm of Fowlie Richmond & Co. 1881—Forbes & Walker, Ltd. started by James Forbes and George Chapman Walker. 1901-1902-3Keell & Waldock, Ltd. Founded by W. E. Keel! (who had been with Somerville & Co. from 1895) and H. M. Waldock who had been with the firm of Brokers, E. Benham & Co. (previously Benham & Brenner) 1896-1901. 1904-4Bartleet & Co., Ltd.—originally George White, Bartleet & Co., 17, Baillie Street. Original partners George White & Co., London and Wilton Bartleet, Colombo, late of Delmege Forsyth & Co. Became Bartleet & Co. in 1912. 1912-5R. Gordon & Co. Can trace its history back to T. J. Anderson, 1895, followed by Gordon & Wilson in 1902.

'For complete history see Chapter on E. John & Co., " Mercantile Lore ", P. 165. 'See page 15 and for complete history chapter on Somerville & Co., Ltd. " Mercantile Lore " P. 223. ;There Ia no chapter on this firm is " Mercantile Lore " but W. E. Keell is mentioned in the chapter on Somerville & Co., Ltd. P. 223. 0. B. P. states that H. 1.1. Waldock had at one time also been with Somerville & Co. 4 see page 16 of this history and for complete history chapter on Bartleet & Co. " Mercantile Lore " P. 51. 5This firm is also not mentioned in " Mercantile Lore " but its origin is traced from 1895 onwards on pages io and xi of this history. HISTORY OF FORBES & WALKER, LTD. 27

Tar; COLOMBO BROKERS' ASSOCIATION AND THE CEYLON CHAMBER OF COMMERCE.— As has already been stated, Brokers first became members of the Chamber in the year 11902, when Messrs. Forbes & Walker and Messrs. Keell & Waldock were members. The Association was not represented on the Chamber Committee as an Association until '1934 when Mr. P. J. Parsons, later Sir John Parsons, was the Association's elected representative. 0. B. Forbes holds the distinction of having been elected to serve in that capacity for 10 years, 1934, 1935, 1936, 1937, 1938, 1939, 1943, 1944, 1945 and 1946 and it will have been seen that for most of these years he was also Chairman of our Association and that his connection with the Chamber did not cease on his retirement from Forbes & Walker for he became Chairman of the Chamber for the year 1948-49. Today the elected -Chairman of our Association is, by virtue of his office, the Association's elected representative to serve on the Chamber Committee and this office rotates. The writer served on the Chamber Committee in 1949 and 1951 and the late R. H. Horne in 195o. Rates of brokerage appear to have been governed by the Chamber of Commerce, as recommended by the Brokers, since the year 190o, for as an appendix to an ordinance to incorporate the Ceylon Chamber of Commerce in that year, rates of brokerage were scheduled as under :- I. On effecting loans, Mortgages or sales of Land, Estates and Property . . 2. On sale of Coffee, Cocoa, Poonac, Cinnamon, Plumbago, Copra, Cardamoms and Tea 1% 3. On sale of Coconut Oil f.o.b. Rs. 1.25 per ton. Naked Re. roo per ton. 4. On Sale of Bills of Exchange r/I6°/0 5. On amount of Freight obtained (with a minimum of Cts. 25 per ton) 6. On Sale of Bank or Joint Stock Shares 1% (The Seller shall pay the brokerage except in the case of Government Stock when % is to be charged to the Buyer and i% to the Seller). There have, of course, been changes in the above rates, but substantially they remain the same for a Broker looks for 1% on the bulk of his business. Item I has, in effect, been reduced, Item 3 at some time or another must have been increased to Rs. 2'00 per ton. In regard to Item 4 the Banker dictates what rates he is prepared to pay on remittances effected through Brokers and on Fixed Deposits for six months and over, and he is not governed by any Chamber of Commerce rules, but Item 4 refers to Bills sold to Banks and the Seller has always paid the Broker i/16%. The Shipping Lines, through their Agents have always paid the 1% for Freight obtained (Item 5). In regard to Item 6, as the Broker makes the market and runs the Exchange, he levies the scale of charges which hitherto, in the case of Ordinary and Preference Shares and Debentures, has been 1% payable by the Seller, but there is a move afoot to increase this to ri% before we are much older. The rates on Government Securities (since there was a market in local Government Stocks, which only goes back a few years) are much reduced and in line with other Exchanges. When the initial rates were fixed in 1900, there could have been very little business done in these and they must all have been in sterling loans floated in London, but the rates levied were exorbitant ! MERCHANTS AND BROKERS.— The terms are not synonymous but they are both vital cogs in the wheels of .commerce, for whatever may be said to the contrary, the one cannot do without the other. The Broker certainly cannot do without the Merchant and, although the Merchant can, at a pinch, dispense with the services of a Broker in certain circumstances, it does not usually pay him to do so, for in the larger spheres of business, such as Tea and Shares, a Broker's services are indispensable. The term " Merchant " can embrace numerous fields of activity in Ceylon. He can be an Agent (Estate, Insurance, Shipping, etc.) plus importer of all vital necessities and exporter of anything that Ceylon can produce and sell to the world. He can thus be involved in both the buying and selling side of business in general, although he may concentrate on his own particular line of business and thus be a buyer or a seller only.

=See page 19. 21t was recorded in a Minute of a Meeting of the Brokers' Association held on the 6th March, 1912, that at a Meeting previously held between representatives of Merchants and Brokers, Mr. R. F. S. Hardie (then Chairman of the Chamber of Commerce) advocated the official recognition of the Brokers as a Sub-Committee of the Chamber of Commerce. 28 HISTORY OF FORBES & WALKER, LTD.

The " Broker ", on the other hand, is the middle man, and Ceylon being a small country, he finds himself a Broker in all fields of commerce, not as in other parts of the world, where he may be a Tea and Produce Broker only, or a Broker in Stocks and Shares, Exchange, Freight, etc., etc. His principal function in life is to bring buyers and sellers together and thus to create markets, whether it be in any or all of the subjects aforementioned. He is, in fact, the servant of his clients, whether it is on the buying or selling side, although, as it so happens, the bulk of his commission is paid to him by the seller. In the very early days, the operations of Brokers were not confined solely to broking ; it was in the days that Colombo as a Port was just starting to develop, and there were not many merchants. The original merchants were the sea-faring men, such as the founders of the centenarian firms of 'George Steuart & Co. and 'Mackwoods, Ltd. Brokers started up on their own as they saw possibilities of trading, but they did not confine their activities solely to Broking, as we define the term today—as an example the firm of 'George Armitage & Co., who advertised themselves as follows :- Prospectors, Licensed Brokers and Auctioneers and Commission Agents. Proprietors of Gem and Mineral Lands. Minerals assayed and reported on. Wholesale Gem Merchants and Lapidaries. Pelton Water Wheels and Motors. Famous Glen Royal Whisky. Gems purchased, sold, valued and cut. Shares, Produce and Landed Property. Sold by auction at 1% commission. Gradually, however, the growth of merchants far exceeded the growth of brokers,. who worked, and still do work, on a very small amount of capital, for it is not necessary to employ a large amount of capital in a broking business in Ceylon, nor are brokers generally possessed of land, stores and buildings or other fixed assets. A Broker's most valuable (but unassessable) asset is probably goodwill. Thus, today, agency firms or merchants, all those in fact who represent buyers and sellers, outnumber the members of the Colombo Brokers' Association by at least six to one, probably by considerably more. Account has not been taken of outside brokers and auctioneers, whose number is legion, for any individual, on the payment of a sum of Rs. roo:oo can become a licensed broker or auctioneer. Merchants do, in fact, in some cases, employ their own inside broker to- handle business, normally not handled by the recognised brokers, but some, unhappily, use their own broker's name and status to collect easy money, such as freight brokerage on their own shipments and this is where the interests clash, but it can unfortunately cut both ways, as will be shown later. The reason why more broking firms have not set up and joined the Association is solely because Ceylon is a small place on the map of the world, and there are already quite sufficient brokers to deal with the business that is offering. Sir Thomas Villiers, in " Mercantile Lore " repeatedly tells us that " business in Colombo during the years 1878-1888 was at a very low ebb and that most of the brokers lived in their offices in the Fort ". Although this may not have been the case with our founder, it has been shown in the paragraph dealing with ' Early History ' that the takings ' in those early days could have been scarcely sufficient to keep body and soul together for very long. It speaks much for those early pioneers, therefore, that they had the grit and determination to carry on under what must have been the most primitive conditions in a tropical climate with no ' mod-cons ' whatsoever ! All they may have had was cheap living (judged by modern standards), no income tax (that was to come years later), cheap alcohol when the ships came in, but no modern sanitation, no electricity, bad water, poor food and of course no cold storage, fans or air conditioning ; no proper transport facilities or communications and very little feminine society I What a life it must have been and yet they stuck it, and presumably enjoyed it and so laid the foundations for our businesses today. We have a very great deal to thank them for and so, incidentally, has the Ceylon Government of today, although this fact may not be realised ! The Writer's Grandfather, T. S. Grigson, and his brother E. S. Grigson (who started life in Ceylon considerably earlier than James Forbes) were coffee planters. Their home was the Estate coffee store and their beds the coffee bags, with rats as companions !

1See " Mercantile Lore " for histories of both these firms, pages 138 and 198 respectively. aThis advertisement as quoted is amongst the Association's records, obtained from some source thought to be Sir Thomas Villiers. HISTORY OF FORBES & WALKER, LTD. 29

It was not until 1905 that the Merchants and Brokers of Colombo got together and decided that their spheres of business interests should be defined, and that they should no longer continue to cut each other's throats ! Even in 1905 the Brokers were outnumbered by the Merchants by more than five to one. The 'signatories to this agreement were :-

Merchants : AITKEN SPENCE & CO. FRENDENBURY & CO. BOIS BROS. & CO. GALAHA CEYLON TEA CO. BOSANQUET & CO. GORDON FRAZER & CO. BOUSTEAD BROS. HENDERSON & Co. BRODIE & CO. LEE HEDGES & CO. CARSON & CO. LEECHMAN & CO. CHARLES MACKWOOD. LIPTONS, LTD. COLOMBO COMMERCIAL CO. MACKWOOD & CO. CROSFIELD, I4AMPARD & CO. J. M. ROBERTSON & CO. CUMBERBATCH & CO. GEO. STEUART & CO. DARLEY BUTLER & CO. SKRINE & CO. DELMEGE FORSYTH & CO. TARRANT & CO. DELMEGE REm & Co. THEODORE RAWLINS & CO. EASTERN PRODUCE & VANDERSPAR & CO. ESTATES CO. WHITTALL & CO. FINLAY MUIR & CO. LEWIS BROWN & CO.

Brokers : GEO. WHITE, BARTLEET & CO. FORBES & WALKER. GORDON & WILSON. E. JoHN & CO. KEELL & WALDOCK. SOMERVILLE & CO. The Agreement was a straightforward =document by which the Merchants undertook to employ Brokers and not to attempt to cut them out by doing business such as Exchange direct with the Exchange Banks, whilst the Brokers undertook, in future, not to accept any produce direct from a seller. As the business that was already being handled by Brokers direct with their clients was permitted to remain with them, R. Gordon & Co., who had some very old connections brought these with them when they amalgamated with us. The Writer can only recall a few such connections possessed by Forbes & Walker, the principal one was with a European Proprietory owned Estate, where no Agent was ever employed. Throughout its history our firm has made it one of its guiding principles wherever possible, never to accept business except through an Agent. It might be said that, having such a large and valuable connection, we have been more fortunately placed than other Broking businesses. Be that as it may, we have firmly stood for the principle that a Broker should be a Broker only and not a Broker and Agent, and this is the principle that the Founder and his successors would have liked to have seen carried through although, unfortunately, with changing times and circumstances, and with Estates frequently changing hands in recent years, it has not always been found possible to adhere to that worthy principle in practice , for there are only a few Ceylonese or Indian owners of Estates in Ceylon today who will go to the expense of employing Agents to handle their produce for them. The Broker can, of course, refuse to accept the business direct, but in so doing he knows that it will be readily taken up by others in competition with him.

=Taken from Chamber of Commerce Records. 2 The draft of this Agreement is in the Association's Minute Book. The Brokers on their part would not undertake :- (x) The Agency or Secretaryship of any Company. (a) The Shipping of Produce. (3) The financing of Estate Proprietors, viz., the advancing of money against produce which was not, at the time, in the Broker's possession. (4) The receiving of produce direct from Proprietors for sale, produce being defined as Tea, Rubber, Cardamons, Coffee and Cocoa (cocoa from native growers being excepted). With regard to these points it was agreed that business at present in the hands of Brokers should not be in any way affected by the present Agreement, the Colombo Brokers' Association undertaking to investigate any case about which any doubt might thereafter arise and the undersigned Brokers undertaking to produce the necessary evidence to assist in such investigation. The Merchants on their part undertook :- (a) Not to sell or buy produce as defined above except through Brokers. (b) Not to sell or buy Bills of Exchange except through Brokers save in canes where the disposal of such Bills was not under their control. They further undertook (in all cases where control was vested in their hands) loyally to support only such Brokers as accepted and conformed to the principles formulated under the heads (t) to (4) enumerated above. 30 HISTORY OF FORBES & WALKER, LTD. Our firm, fortunately placed as it is, has not found it necessary to accept much of this business, and any amount of it has been turned down. In any case, the type of business offered is usually risky and speculative, and Agents as a rule would not be prepared to finance the Estate Owners, as Brokers are compelled to do if they want the business. In every case the buyer of a property has borrowed money up to the maximum possible on the value of the property from the State Mortgage Bank or one of the established Credit Corporations on a primary mortgage. The selling Broker may be offered a secondary mortgage for a loan to complete the purchase or to provide working capital or, what is more usual, he enters into a Crop Bond, by which the crop from the Estate is hypothicated to the Broker, who advances him money against the produce in his store, and re-coups as and when the produce is sold. This type of business is profitable for just as long as business is good, but it is exceedingly risky unless the Broking firm has reserves to cover loans outstanding and the probability is that no firm of Brokers has anything like sufficient reserve, in fact those who handle much of this business must have extensive overdraft facilities with their Bankers. 'The next record of a meeting between Merchants and Brokers was on March 6th, 1912, when various matters and points arising from the original 1905 Agreement were discussed. Merchants also undertook to use their influence to induce those Merchants who had not signed the Agreement to do so, and the Brokers promised to supply a list at an early opportunity. The following were present at that Meeting :- Merchants : HON. MR. W. H. FIGG (In the Chair). SIR STANLEY BOIS. MR. R. F. limum. „ GORDON Bois. Brokers : MR. W. E. DRU'RY. „ F. W. WALDOCK. „ R. MEADEN. Difficulties for the implementation of the Agreement over the sale of Rubber arose very shortly after this for at a 'meeting of the Association on 7th May, 1912, with W. E. Drury in the Chair, the following resolutions were adopted " (I) This Meeting learns that certain Merchants, signatories to the above Agreement of November, 1905 find it impossible to adhere to the strict terms of the Agreement in respect of the article Rubber. That the Brokers' delegates be, therefore, instructed to meet the Merchants' representatives for further discussion, especially for the purpose of explaining to them the actual difficulties with which the Brokers have to contend in the handling of Rubber. (2) That the Meeting is of the opinion that circumstances have now arisen effectually to prevent the article Rubber from being included in those products which have hitherto been controlled by Agreement. The Brokers, on their part, have suffered severely from competition with Natives, and whilst intending to support the interests of the Merchant signatories to the utmost of their power, they feel that they must, in future, be allowed to accept such business as will not directly prejudice the welfare of their Merchant friends. " Similar difficulties arose later over S. Indian Rubber consigned to Brokers direct for sale in Ceylon. It was recorded in the 'Association's Minutes of May 24th, 1912, that the Merchants, on May loth, had passed the following resolution :- "That signatories to the Agreement of the 28th November, 1905, be allowed to withdraw from the same on or after 15th June, 1912, on expressing their intention of so doing to the Chairman of the Committee of the Agreement ". It was not until 425th September, 1945, that a meeting took place between the signatories of the 1905 Agreement, at the Chamber of Commerce, to annul that Agreement.

_ • 2 & 3Colombo Brokers' Association Records. •Ceylon Chamber of Commerce Records. •

HISTORY OF FORBES & WALKER, LTD. 31 Sir Thomas Villiers presided and 0. R. Scott acted as Secretary, those present were :— Merchants : MESSRS. BOIS BROS. & Co., LTD. represented by Mr. G. C. Slater. COLOMBO COMMERCIAL CO., LTD. „ T. J. K. McLeod. HARRISONS & CROSFIELD, LTD. „ J. W. Thompson. CUMBERBATCH & CO., LTD. Messrs. G. C. Beaumont and G. C. Carter.

JAMES FINLAY & CO., LTD. 71 Sir John Tarbat. LEECFIMAN & CO. Mr. D. T. Richards. LIFTONS, LTD. „ E. C. Rice. MACKWOODS, LTD. J. C. Kelly. J. M. ROBERTSON & CO. „ R. Bois. GEORGE STEUART & Co. D. C. Wilson. WirarrALL & CO. ,, H. W. Urquhart. LEWIS BROWN & CO., LTD. „ A. F. Patterson. Brokers : MESSRS. BARTLETT & CO., LTD. represented by Sir John Parsons and Mr.W.S. Flindall. FORBES & WALKER. Col. 0. B. Forbes, C.B.E. R. GORDON & Co. Mr. S. F. 0. Lovell. KEELL & WALDOCK. • W. E. Keell and Mr. D. Norrie. SOMERVILLE & CO., LTD. „ H. G. Donald. E. JOHN & CO. „ R. J. Meaden. After the terms of the original agreement had been read, the Chairman said that, although the original Agreement was straightforward, rates of commission on produce were added to which a number of firms were unable to agree, although they did not withdraw from the original Agreement. He, therefore, called on Sir John Tarbat to propose the resolution in the name of Messrs. Jas. Finlay & Co., Ltd. Sir John Tarbat said that trading conditions had changed and with estates changing hands the time had come when the so-called Merchants' and Brokers' Agreement of 1905 should be done away with entirely. In many cases it had not been possible for firms fully to observe the Agreement in all points. He then formally moved :- ' That the Agreement entered into in 1905 between the Merchants and Brokers of Colombo and all subsequent resolutions passed by them be hereby annulled. " Col. 0. B. Forbes seconded on behalf of Forbes & Walker. Mr. D. T. Richards (Leechman & Co.) said that he thought that instead of ' burying ' the Agreement, it might be advantageous to preserve it in a ' mummified ' form. Mr. G. C. Slater (Bois Bros.) deplored the subsequent addition of commission rates on produce to the original Agreement and referred to the number of estates which had changed hands and to the likelihood of the new Proprietors, in order to cut costs, sending their produce direct to the Broker. This, he said, might lead to strained relations and retaliation against the Brokers by Merchants placing Exchange, etc., direct. He suggested that, if the preparation of a new Agreement was not admissable, as an amendment, the 1905 Agreement be referred for revision to a representative committee. Here then was an eleventh hour attempt to keep the Agreement alive, but Mr. D. C. Wilson (Geo. Steuart & Co.) referred to a failure of the attempts (apparently made in 1926) to devise a new Agreement acceptable to all parties. He mentioned that a good few of the signatories to the 1905 Agreement had qualified their adherence to the terms and there were a large number of Merchants who had never been signatories at all. He, therefore, supported the original resolution that the 1905 Agreement be annulled. Mr. Slater's amendment, on being put to the Meeting, was declared lost-5 voting in favour and 12 against. The original resolution was then put to the Meeting and declared carried by 14 to 5. Thus, most regrettably, was the original " Gentleman's Agreement " finally laid to rest, having been born of such good intentions in the year 1905. 32 HISTORY OF FORBES & WALKER, LTD.

TAXATION- (a) Income Tax-This was first introduced to Ceylon in the year 1932, earlier attempts to bring it in having been thrown out. The following tables show how the rates of individual taxation have increased since the year of assessment 1932-33 :-

1932-33-1936-37 1937-38--1939-40 On first Rs. 6,000 5% (unit rate) 6% (unit rate) „ next „ 30,000 1o% 12% „ Remainder 15% 18%

1940-41-1943-44 1944-45 On first Rs. 6,000 74% (unit rate) 84% (unit rate) „ next „ 30,000 15% 17% „ „ „ 50,000 22i% 254% • „ Remainder 30% 34% 1945-46-1949-50 1950-51 On first Rs. 6,000 84% (unit rate) 9% (unit rate)

IP next „ 10,000 18% 19% „ 20,000 21% 22% ° pO 7/0 ,, 50,000 374% 39 /o „ „ „ 100,000 58% 6o% „ Remainder 64% 66% '1951-52 1952-53 On first Rs. 6,000 90/0 g% after the Budget in July 1952 „ next „ 10,000 19% 19% was presented, indicating no 2 I t 71 „ 20,000 4% 24% change, a Food Subsidies 0 11. „ 50,000 71 43 /0 43% Temporary Tax was intro- „ „ „ I00,000 68% 68% duced. 1o% surcharge on „ Remainder 76% 76% taxable incomes.

'1953-54 On first Rs. 6,000 io% „ next „ 6,000 20% 2 71 PP 6,000 5% 30% 11 SP 6,000 35% 77 11 6,000 0 17 10,000 4 % 10,000 5o%

PP „ 20,000 6o% „ 20,000 70% „ 30,000 8o% „ Remainder 85% Allowances granted in 1932-33 to individuals were :- Personal Allowance Rs. 2,000 Earned Income 1/5th maximum Rs. 4,00o Wife Rs. L000 ist Child (under 18) 1,000 2nd „ „ „ 500

3rd PP 11 500 maximum allowance

4th PI 11 500 Rs. 3,000

5th PI 500 These allowances were not increased until 1951-52 as under :-

Personal Allowance • • Rs. 2,000 (unchanged) Earned Income • • 1/5th maximum Rs. 4,000 (unchanged) Wife • • Rs. 1,500 ist Child (under 18) • • „ 1,500

2nd „ 71 71 • „ L000 maximum allowance

3rd „ I/ /I • • „ i,000 Rs. 4,500. 4th „ • • „ 1,000

'Allowances increased. 'Income TeX at the maximum rate of 85% takes effect on gross incomes over Rs. 120,000.00. HISTORY OP FORBES & WALKER, LTD. 33

The following figures show the effect of the increase in direct taxation upon gross incomes in categories varying between Rs. 25,00o and Rs. 200,000 per annum. The examples are based on a married man with two children under 18 years :-

1932-33-1936-37 1937-38-1939-40 1940-41-1943-44 Gross Nett Nett Nett Income Income Income Income Rs. 25,000 23,650 Rs. 23,380 Rs. 22,975 50,000 45,875 45,050 „ 43,812 75,000 67,175 65,73o „ 63,187 100,000 88,375 86,050 „ 82,150 125,000 109,625 106,550 „ 99,65o 150,000 130,875 127,050 „ 116,550 175,000 152,125 147,550 „ 136,450 200,000 173,075 168,05o „ 152,150

1944-45 1945-46-1949-50 1950-51 Rs. 25,00o Rs. 21,355 Rs. 22,585 Rs. 22,750 1 2 „ 50,000 42,987 17 4 ,4 7 11 41,015 0 2 75,00o 58,552 17 57, 5 56,265

„ 100,000 79,753 71,550 /1 70,390

„ 125,000 96,27o 71 81,950 80,360

„ 150,000 112,770 17 92,590 90,260

„ 175,000 129,270 103,05o PY 100,360 „ 200,000 145,770 113,550 110,030 Tax percentage 1951-52 1952-53 1953-54 of Gross Income Rs. 25,000 Rs. 22,75o Rs. 22,727 Rs. 22,450 I0'2% 50,000 41,040 40,950 38,800 22'40% 1 33.60% 75,000 55,290 FP 53,3 9 49,800 6 100,000 PP 68,54° 5,394 57,80o 42'20% 1 6 6 125,00o IP 76,540 71 7 , 94 62,800 497 %

150,00o P1 84,540 77,994 66,800 55'46% 2 0 8 2 175,000 9 ,54 /1 4, 94 70,550 59'68%

200,000 17 100,220 90,294 74,300 62.85% Thus it will be seen that, when Income Tax vas first introduced into Ceylon, the individual on an income of Rs. 25,00o gross per annum, after receiving his allowances as a family man with two children, paid 5.4% of his income away to the Ceylon Government, this percentage varying slightly but keeping fairly constant and rising in 1953-54 to 10.2%. An individual on the top level, and drawing the same allowances, paid a mere 13.46% of his income away to the Government in 1932-33, the percentage rising steadily year by year and precipitately from 1945-46 onwards until in the last year of assessment he paid away 62.85% and is left with rather less than Rs. 75,000 out of Rs. 200,000. In addition, the cost of living in Ceylon has risen steadily since 1940, so that today it is at least double, probably nearer treble what it was in 1932 and higher than it is in the U.K. The very heavy import duties levied on practically everything that a European has to have to maintain a befitting standard are a contributory factor. Rents and wages have increased enormously and generally speaking food is much more costly in Ceylon than it is in the U.K. Increases in indirect taxation in the last budget caused a sharp rise in living costs. It can be estimated that these have risen 25% during the past five years, and that it now costs a married man with two children below school age a minimum of Rs. 3,25o per month (Rs. 39,000 a year), so that this man must have a gross income of Rs. 50,00o per annum. Costs naturally rise as the children grow up and, later, when they reach an age at which they must be sent to boarding schools in England, the total outlay per month can be expected to rise to about Rs. 5,000 per month, viz. Rs. 60,00o per annum, requiring a gross income of about Rs. 112,500. It is not surprising, therefore, that a young man today views the future with misgivings and is much exercised in his mind as to how he is ever going to purchase his advancement in business and at the same time be able to set aside for his retirement. Our forebears may have had their own worries and difficult periods, but at least they could count on keeping what they earned and only experienced high taxation after they had retired to the U.K. 34 HISTORY OF FORBES & WALKER, LTD. (b) Excess Profits Duty—E.P.D. was introduced in 1941. 50% of profits above pre-war standard. The taxpayer could select the average on any two out of the three last pre-war trade years. (c) Profits Tax—This tax was introduced when E.P.D. came off in 1948. The rate was fixed at 2o% over Rs. 50,00o or 6% of the capital employed in the business. It was increased to 25% in 1951. (d) Export Duties—Duties and Cesses connected with the export of the under- noted commodities from Ceylon, from the time of introduction to date, are shown as an appendix to these Notes. The statements are reproduced in the form in which the information was supplied by the Customs to the Chamber of Commerce. It will be seen how steeply these have risen in the last five years :- Tea. Rubber. Copra. Coconut Oil. Desiccated Coconut. Styled Copra and Cognate Products. Fresh Coconuts. Coconut Poonac. Cocoa. Cardamons. Citronella Oil. Cinnamon. Pepper. Plumbago. Cinchona. Coffee. It will be seen that in the last quarter of 1951 variable export duties were levied on Ceylon's principal commodities : Tea, Rubber, Copra and Cognate Products.

(i) Tea—As from the 1st October, 1951, a sliding scale of export duty was . introduced. This sliding scale, which remains in force at the moment, is based on the average price realised at the Tea Sale of the preceding week_.but one and the prevailing rate of export duty operating during that particular week. Thereafter, it is calculated according to a laid down schedule. The minimum duty applicable is 35 cts. per lb. and duty fluctuates in accordance with the price movements of the commodity. During the current year the duty has, so far, fluctuated between 36 and 62 cts. per lb. In addition, the exporter has to pay " Medical Wants " and other export levies. (ii) Rubber—The rate of duty on Rubber was reorganised on a sliding scale in September, 1951, and a schedule was laid down with the F.O.B. price of No. i Sheet taken as the basis for calculation on all grades of rubber with the exception of Scrap and Scrap- Crepe, which were worked out separately. The minimum duty on all Rubber, however, was fixed at Rs. 15.0o per zoo lbs. plus the addition of the usual cess of Rs. 1.4o to cover Research and Medical Aids. After a short period of fluctuation in the duty rate between 38 and 52 cts. per lb. for Sheet and Crepe, and 18 to 23 cts. per lb. for Scrap Crepe up till the end of 1951, the market became very irregular and eventually declined, bringing the duty on all grades to the minimum by the end of July, 1952, since when it had remained unchanged. (iii) Copra & Cognate Products—These are based on the weekly average prices, of Copra as published daily by the " Low Country Products Association ". Coconut Oil pays 8o% of the Copra Rate. Desiccated Coconut pays 6o% of the Copra Rate. Coconuts pay 25% of the Copra Rate. No Export Duty is levied on Fibre.

CLERICAL STAFF- 0. B. Forbes' notes about the original Staff in 1881 are reproduced on Page 18. The earliest record of a wages book is for May, 1896. The total wages bill in that month was for Rs. 357.00 and there were five clerks on the strength.

,See Appendix C 'The Sliding Scale was abolished as from 3o-t t-53 and a fiat rate of duty of Cts. 45 per lb. was substituted on the same day. The fiat rate was raised to Cts. 6o per lb. on 14- 5.54 75 24- 9-54 „ „ Re. r/- „ 18-11-54 HISTORY OF FORBES & WALSER, LTD. 35 The Head Clerk was G. S. Don, who appears to have retired in 1907. The second 'senior was J. A. Kannangara, who became Head Clerk in 1907 when G. S. Don left. He was Head Clerk in 1922 when the Writer came to Ceylon and there is a record to show that he actually joined the firm in 1888. He retired on a pension at the end of 1929 and died 26-6-1939. A younger brother, J. G. Kannangara, joined in 1905 and retired on a pension in 1940 and is still a pensioner today. He was never actually Head Clerk. His son, G. M. Kannangara, joined the staff as from 1-11-1947. W. L. Ingram (a Burgher who always wore a straw hat and tunic coat) joined in 1899 and was No. 2 to J. A. Kannangara when the Writer arrived in Ceylon. He was connected with the Tea Department and retired on a pension in September, 1930, and died 14-4-1942. C. H. Friskin joined in December, 1901 as a senior clerk and on the same level as 3. A. Kannangara and thus must have gone over the head of W. L. Ingram. He retired on a pension in 1916 which he drew until his death in 1942. He was never actually Head Clerk. J. G. Hesse (like Ingram always wore a straw hat).. He joined in 1902, warked in the Tea Department and has been a pensioner of the firm since 1932 when he retired. M. R. Babapulle joined in May, 1905, became Head Clerk in 1932, retired in 1940 and is a pensioner of the firm today. A son, N. J. Babapulle, joined in 1942. L. S. C. Wijetunge arrived in 1907 and retired on a pension at the end of 1941. He died 27-8-49 and a pension has been voted to his widow annually ever since. P. Xavier Walagani (later known as P. Xavier only, but commonly known as Peter) joined in 1909 and was for many years Chief Clerk of the Share Department. He retired at the end of 1943 and is a pensioner of the Firm today. N. S. Woutersz joined in 1909 as a stenographer and served the firm in that capacity many years, even returning for a time during the war, after he had retired. He was a Burgher, finally retired in 1945 and died 1-12-1952. His widow is voted a pension annually. 0. B. Jansz was a member of the staff from 1910 until 1922 when he left to join Messrs. Keell & Waldock, of which firm he is a member today. G. Daniel arrived in 1910 and died in harness in 1934. His widow received a pension until 1947. A son joined the staff from the date of his Father's death, but his services were discontinued from September, 1952. W. E. L. van Twest, a Burgher, joined in 1912. For a large part of his time with us he was telephone operator and despatch clerk. He retired in 1946 and is a pensioner of the firm today. C. Sab Severatne joined as a Rubber Clerk in 191r but left after a short period to start up in business on his own. Joseph de Silva joined in 1918 as a junior shorthand typist. He was taken into the Rubber Department in 1922 and became Head Clerk in 1940. He was promoted to the status of Assistant in November, 1947. N. N. Rajalingham arrived in 1922 as a Rubber Clerk, he died 7-6-1944 and his widow received a pension for some years. On the amalgamation with R. Gordon & Co. on 1-4-1946 fourteen clerks joined the staff, of whom the following remain today :— 1 3. V. C. HOLSINGER. J. A. R. ANANDAPPA. G. ACHILLES. H. W. HARRIS (Stenographer). MRS. D. FELSINGER. Telephone Operators. MRS. VAN HOFF. Casie Chitty joined as the firm's sub-Broker, in which capacity he acted for R. Gordon & Co., also C. L. Reimers, who had been with the firm of R. Gordon & Co. since 1898 and Head Clerk since 1905. He joined the amalgamated firm in his capacity as a sub-Broker and he died 10-6-1949. His widow is voted a pension annually. A list of the Clerical Staff as it is today appears as an appendix to these notes and shows dates of joining. There are 41 clerks on the strength and 8 pensioners.

31. V. C. Holsinger died suddenly on 23-12.54 after a heart attack. He was President of the Ceylon Mercantile Clerks Union from 1947-1953. 36 HISTORY OF FORBES & WALKER, LTD.

SUBORDINATE STAFF, PEONS, TEA BOYS AND COOLIES- Past—Among the personnel in May, 1896, were a carpenter and a punkah boy. The former, whose name appeared to be Davith, was on the strength up till 1919. At the head of the payroll was Simon and next " Tea Boy ". Simon, the Father of K. A. G. and K. A. D. S. Silva, the present Head Clerk and his brother, left to take charge of our stores at Mortlake in July, 1911. In January, 1915, " Tea Boy " is shown as W. Perera, with 3o years' service which shows that he must have joined the firm in 1885, whilst Carpenter Davith is given 33 years' service in that year, which means that he completed 37 years with the firm altogether. The third on the list in 1896 was William, who departed at the end of 1914 and " William's son " appears in April, 1915. An office coolie called Johnnie appears to have been pensioned off in 1915 after 25 years' service and drew a pension until his death in March, 1944. Another, called Davith (H. A. Edwin Appu) retired at the end of 1941 after 45 years' service with the firm with two samplers, T. S. Silva and Sawaris, with 4o and 36 years service respectively. They are pensioners of the firm today. Another sampler, Bastian, retired in July, 1941, after 37 years' service and is on the pension list today. James, originally an office boy, retired on a pension in 1932 after 28 years' service and he heads the pension list today. Present—In 1896 there were 12 members of the subordinate staff, today there are 82 (including 14 pensioners) made up as follows :- 4 Tea Boys. II Samplers. 12 Peons. 3 Bicycle Orderlies. 3 Messenger Boys. 18 Coolies. 7 Store Coolies. 9 Rickshaw Coolies. Van Driver. 14 Pensioners. HISTORY OP FORBES & WALKER, LTD. 37

APPENDIX 'A' PARTNERS, DIRECTORS & ASSISTANTS OF FORBES & WALKER DATE OF DATE JOINING NAME REMARKS Lure 31-12-1925 I- 8-1881 JAMES FORBES Original Founders and Partners 1- 8-1881 G. CHAPMAN WALKER 19- 8-1923 Do- 4-1891 W. E. DRURY Made a partner 1-8-1899 31-12-1935 I- 9-1893 A. H. BARBER Died when about to leave 30- 6-1909 I- 9-1899 R. W. FORBES Made a partner in 1905 31- 3-1914

I- 9-1903 F. N. SupLow /3 11 PP 1-1-1911 31-12-1930 T-I1-1904 C. H. WELLARD 31-12-1922 I- 3-1906 G. R. BACOT Made a partner 1-1-1923 31-12-1925 I- 5-1909 W. D. GARRETT 30-11-1919 16- 6-1909 0. B. FORBES Made a partner 1-1-1923 31- 3-1946

I- 5-1910 H. H. Krwrox 31 1-1-1926 3-1939 I- 4-1910 A. T. GARDNER I- 4-1913 I- 6-1910 C. H. HEXT 31- 8-1910 15- 8-1910 R. M. MILNE 30- 6-1920 I- 2-1914 C. W. WALKER Made a partner 1-1-1926 31- 3-1946 I- 5-1918 L. des CLAYES 30- 6-1919 I- 4-1920 A. F. WALLACE TARRY Made a partner 1-1-1926 31-12-1935 I- 7-1920 F. L. TIEEs 18- 5-1925 18-10-1920 J. W. E. ADAMSON Made a partner 1-1-1936. Original Director F. & W. Ltd. 1-4-1948 31- 3-1952 7- 2-1922 N. D. DRURY Made a partner 1-1-1931. Original Director F. & W. Ltd. 1-4-1948 15- 8-1923 R. H. HORNE Made a partner 1-1-1936. Original Director F. & W. Ltd. 1-4-1948. Died as a Director. 2-10-1951 I- 7-1924 S. T. PEARSE 31- 5-1926 28- 5-1925 Miss I. M. 0. JENKINS 31-12-1947 I- 9-1925 K. C. B. WOODMAN 30- 4-1932 13- 3-1926 T. KANE Made a partner 1-4-1946. Original Director F. & W. Ltd. 1-4-1948 13- 3-1926 G. N. de ST. CROIX Made a partner 1-4-1946. Original Director F. & W. Ltd. 1-4-1948 I- 1-1928 A. J. PELLY FRY Made a Director of F. & W. Ltd. 1-4-1952 31 -10-1935 M. P. DAVIS 31- 3-1946 I- 9-1938 D. S. HUTCHESON Made a Director of P. & W. Ltd. 1 -4-1953 I- 4-1946 ID. M. MACKIE Joined as a Partner 1-4-46. Original Director F. & W. Ltd. 1-4-1948 I- 4-1946 A. D. LEARMOND Joined as a Partner 1-4-46. Original Director F. & W. Ltd. 1-4-1948 31- 3-1952 I- 4-1946 J. K. SPEER Made a Director F. & W. Ltd. 1-4-1952 I- 4-1946 C. J. CASIE CHITTY Joined from R. Gordon & Co. as Sub-Broker I- 7-1946 P. L. FOULSHAM 31-12-1946 I- 5-1946 R. E. A. de FONSEKA I- 1-1947 J. B. W. GRIGSON I- 9-1947 J. de SILVA Promoted to Assistant from Head Clerk I- 9-1947 N. J. R. PERERA I- 4-1949 J. HoErrs 16-11-1950 C. R. E. PEIRCE I- 1-1951 G. P. DIAS 1-12-1951 MISS E. E. HAYWARD I- 2-1952 S. G. WILLIAMSON Made a Director F. & W. Ltd. 1-4-1954. I- 4-1952 A. D. NEALE 1- 4-1953 B. SIVARATNAM I- 1-1954 J. G. PAULET I- 1-1954 P. G. WYNN-EVANS 'Retired 31-3-1954. died enroute for the U.K. 4-4-1954. HISTORY OF FORBES & WALKER, LTD.

APPENDIX '13'

CL ERICA NAME DATE OF JOINING • K. A. G. SILVA 1-12-10 ▪ J. V. C. HOLSINGER I- 8-19 H. W. HARRIS I- 1-23 SILVA I- 2-23 ▪ J. V. de I- 6-25 ALEX de SILVA 1-11-25 D. C. jAYA.KODY I-11-25 K. A. D. S. SILVA 26- 4-26 B. W. PERERA I- 8-33 GEO. ACHILLES I- 1-34 J. A. R. ANANDAPPA 15- 1-37 G. B. DIAS I- 4-40 H. SIRISENA 1-11-41 A. L. CLOGSTOUN 3- 1-42 N. J. BABAPULLE 3- 1-42 D. G. ABHAYA.RATNE 8- 3-43 A. J. M. LAFIR 18-10-43 D. G. LIYANAGE II- 5-44 C. W. P. WEERASINGHE 1-11-45 MRS. D. FELSINGER 5- 4-46 MRS. N. VAN HOFF 16- 1-47 H. L. MANAMPULLE I- 4-47 R. N. MANIcKAM I- 6-47 T. A. Y. PETERS 1-11-47 G. M. KANNANGARA 4- 4-49 P. T. COMES I- 2-5o G. L. N. de SILVA 18- 4-50 P. Y. C. de Su,vA 26- 4-50 M. T. de SILVA

15- 5-50 • • F. J. HETTIARATCHY 16- 4-51 • B. M. THAHIR 3- 5-51 T. T. PHILIP 2- 7-51 P. R. COMES 3- 7-51 L. D. V. HENRY 19- 7-51 G. D. HATHTHOTUWA I- 9-51 S. TENNEKOON 1- 3-52 F. X. J. CAKE CHITTY 8- 8-52 K. 0. PERERA I- 1-53 S. A. JOSEPH 6- 1-53 T. SEEVARATNAM 12- 3-51 T. KARTHIGESU 2-11-53 D. A. DEUTROM 38 HISTORY OF FORBES & WALKER, LTD.

APPENDIX '13'

CLERICAL STAFF

DATE OF JOINING NAME

I-I2-I0 • • K. A. G. SILVA 1- 8-19 J. V. C. HOLSINGER I- 1-23 H. W. HA.RRIS I- 2-23 J. V. de SILVA I- 6-25 ALEX de SILVA I-I1-25 D. C. JAYAKODY 1-11-25 K. A. D. S. SILVA 26- 4-26 B. W. PERERA I- 8-33 GEo. ACHILLES I- 1-34 J. A. R. ANANDAPPA 15- I-37 G. B. DIAS I- 4-40 H. SIRISENA. I-I1-41 A. L. CLOGSTOUN 3- 1-42 N. J. BABAPULLE 3- 1-42 D. G. ABHA,YARATNE 8- 3-43 A. J. M. LAFIR 18-10-43 D. G. LIYANAGE II- 5-44 C. W. P. WEERASINGHE I-11-45 MRS. D. FELSINGER 5- 4-46 MRS. N. VAN HOFF I6- 1-47 H. L. MANAMPULLE 4-47 R. N. MANICKAM I- 6-47 T. A. Y. PETERS 1-11-47 • . G. M. KAisTNA-NGARA 4- 4-49 • • P. T. GOMES I- 2-50 G. L. N. de SILVA 18- 4-50 P. Y. C. de SILVA 26- 4-50 M. T. de SILVA 15- 5-5o F. J. HEI'TIARATCHy 16- 4-51 • • B. M. THAHIR 3- 5-51 T. T. PHILIP 2- 7-51 P. R. Gouts 3- 7-51 L. D. V. HENRY 19- 7-51 G. D. HATHTHOTUWA I- 9-51 S. TENNEKOON I- 3-52 F. X. J. CASIE CHITTY" 8- 8-52 K. 0. PERERA I- 1-53 S. A. JOSEPH 6- 1-53 T. SEEVARATNAM 12- 3-51 T. KARTHIGESU 2-11-53 D. A. DEUTROM HISTORY OF PORBES & WALKER, LTD. 39

APPENDIX 'C'

EXPORT DUTY AND CUSSES ON TEA

Medical Research Propaganda Control Total Unit Operative Duty Aid Cess Cess Cess Date Rs. eta. Rs. eta. Rs. eta. Rs. etc. Rs. cts. Re. cts. Lbs.

I- 1-1883 ' 05 05 112

I- 1-1884 • I0 ' TO

I- 1-1893 -To* • TO ' 20 I- 1-1914 • 15 '15 TOO r . 1-10-1915 1 '35 '15 1 5o „ . 25- 8-1922 2 ' 85 '15 3 00 91 - 13-11-1925 2'85 .15 '10 3 TO ,, • I- 1-1931 2 ' 85 .15 14 Y 3'14

1 I- 4-1932 2.22 ' 15 ' 14 2 '5 ,, 5-11-1932 2.22 • 15 '14 '50 3.01 . 23- 6-1933 2 ' 22 • 15 '14 '50 • TO 3 I I

1-10-1933 2 ' 22 '15 '14 '50 '20 3'21

1 29- 3-1934 2 ' 22 ' 15 ' 14 '50 ' 14 3' 5 1 - I- 4-1935 2' 22 • 15 ' 4 '75 II 3'37 1-10-1935 2 . 00 ' 15 '14 '75 •11 3.15 „ - I- 1-1937 2 . 00 ' 15 '14 r oo -II 3'40 26- 2-1938 I ' 50 '15 •14 I'00 ' I I 2'90

. I- 4-1939 1 ' 50 ' 15 '14 I'00 08 2 ' 87 ,, . 10- 7-1941 3 00 415 '14 1.00 .08 4'37 FP I- 4-1943 3.00 -15 '14 .60 .08 3'97 . 26- 6-1943 3 00 -15 '14 .60 '05 3'94 . 28- 1-1947 38'OO .15 '14 •60 05 38.94 I- 4-1948 38.00 .15 '14 -6o 38'89 I- 1-1949 38 ' 00 '15 '25 .6o 39'oo . I- 4-1949 38 'OO '15 25 I.00 39'40 I- 7-1949 38'00 '15 '25 I ' 00 '05 39'45 21- 7-1950 53.00 '15 •25 I'00 '05 54'45 29- 9-1950 53.00 •15 -25 I•oo . TO 54'50 - 1-10-1950 53 .00 •15 25 I ' 70 '10 55'20 . . . 15- 3-1951 60 00 .15 •25 1 70 .10 62 20 I- 9-1951 6o'oo .15 .3o I ' 70 '10 62.25 1-10-1951 t -15 •30 1•70 '10 - . 29-10-1953T 45.00 .15 30 1 70 *10 47' 25 . . - 19-12-1953 45 00 .15 '55 1 70 10 47'50 . . 13- 5-1954 6o 00 15 '55 I ' 70 'I0 62.50 ,.- - 23- 9-1954 75-00 '15 '55 1.70 10 77'50 18-11-1954 ioo•oo '15 '55 1.70 .10 102-50 *This additional duty of io cts. was levied under Ordinance No. r7 of 1869 to provide towards cost of representation of this Colony at the Worlds' Columbian Pair at Chicago in 1893. Date recovery ceased not known. tVariable weekly duties. ;Note-On zo-z-55 the Duty was again raised to Rs. tyro° per coo lbs. 42 HISTORY OF FORBES & WALKER, LTD. EXPORT DUTY AND CESSES ON FRESH COCONUTS

Operative Duty Research Cess Total Unit Date Its. ets. Rs. cts. Rs. cts. 1-10-1915 2'00 -- 2'OO woo nuts 3o- 9-1922 3 .00 3'oo

22- 7-1926 2'OO 2'OO 11 2

5-12-1928 2'00 '05 2'05 p, 12

- - ' 05 . 05 31 7 1931 12

28- 1-1947 42 ' 00 ' 05 42'05 22 Pf 13- 8-1948 (A) .05 (A.) Minimum duties vide notifica- tion of 12-8-1948 for ' over- price ' duties.

26- 8-1948 (B) '05 , (B) Minimum duties vide notifica- tion of 25.8-1948 for ' over- price ' duties. - - 0 . 21 12 1949 84 ' 00 ' 5 84 05 30- 6-1950 42 '0D '05 42.05 2 00 20-10-1950 4 ' -25 42'25 10-12-1951 -25 „ (C) Variable weekly duties. (c) - 17-12-1951 8o'oo 25

4-12-1953 65-oo .25

EXPORT DUTY ON COCONUT POONAC

Operative Duty Total Date Unit Its. ets. Its. cts. - 30- 9-1922 '35 35 Cwt.

- - ' 22 7 1926 20 '20 ,

31- 7-1931 PP

30.. 6-1950 100 ' 00 /00 ' 00 Tan

200 ' 00 200'00 15- 3-1951 ,

EXPORT DUTY AND CESSES ON COCOA Medical Operative Duty Aid Total Unit Date Rs. ets. Rs. eta. Rs. eta.

I- 1-1883 '05 '05 Cwt.

I- 1-1884 -10 -10 22

I - 1-1914 ' 15 ' 15 Ioo lbs.

1-10-1915 1.35 '15 I.50 .,, PP

- - ' ' 22 7 1926 85 15 1'00 12

- - 1 31 3 1932 .60 ' 5 '75 ,

- - ' 15 ' 15 5 10 1934 ft tl

- ' ' 15 3-1951 25 00 15 25.15 Pl.

50 ' 00 ' 15 8- 7-1954 50'15 Pt

EXPORT DUTY AND CUSSES ON CARDAMOMS Medical Operative Duty Aid Total Unit Date Rs. cts. Rs. eta. Rs. eta. 1- 1-1914 '75 '75 100 lbs. 1-10-1915 6.75 '75 7'50 4- 2-1916 15- 3-1951 200'00 200'00 23- 7-1953 100'00 I00'00 HISTORY OEi PORBES & WALKER, LTD. 43

EXPORT DUTY ON CITRONELLA OIL

Operative Duty Date Rs. cts. 15- 3-1951 200'00 3o- 9-1951 I-IO-t952

EXPORT DUTY ON CINNAMON

Operative Duty Unit Date Rs. cts. 21- 2-1947 '20 Per lb.

9- 1-1948

EXPORT DUTY ON PEPPER

Operative Duty Unit Date Rs. cts. 21- 7-1950 200 ' 00 100 lbs. 15- 3-1951 50'00 Too , 8- 7-1954 50 .00 Ioo „

EXPORT DUTY ON PLUMBAGO

Operative Duty Unit Date Rs. cts. 21-12-1877 '25 Per cwt. 3- 8-1916 3% Ad Valorem 3-10-1925 Free 10- 7-1941 I'OO

EXPORT DUTY AND Medical Operative Duty Aid Unit Date Rs. cts. Rs. cts. I- 1-1883 ' 10 Per cwt. I- 2-1884 ' 20 I- 9-1891 '05 I- 1-1914 Recovery ceased

EXPORT DUTY AND CESSES ON COFFEE Medical Operative Duty Aid Date Rs. cts.

I- 1-1883 ' 05

I- 1-1884 ' IO 11 1- 1-1914 Recovery Ceased