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[Page 95]
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I proceeded to sea in the "Messina" at 5-0 p.m. on 28th October, taking with me my Intelligence Officer - Captain Travers - Captain E.C. Norrie, and Lieut. A.D. Fisher, and 50 Infantry, one machine gun section, and a detachment of the Army Medical Corps under Captain J. Donaldson.
I appointed Major F.B. Heritage Deputy Administrator at Rabaul during my absence.
As I gathered from my telegraphic instructions that it was intended that the administration of Nauru should eventually come within the scope of the High Commissioner of the Western Pacific, who I know was represented already by a Resident Commissioner at Ocean Island, and as I was aware that the principal industry, indeed the only industry, at both Ocean Island and Nauru was that of acquiring phosphates, and that the Pacific Phosphate Company was absolutely controlling such industry, I determined to shape the ship's course first to Ocean Island, and there confer with the Representative of the High Commissioner of the Western Pacific before proceeding to Nauru.
Before leaving Rabaul I searched the Government books to make myself acquainted with the extent of the Company's operations as far as Nauru was concerned, amount of revenue, etc.
The Company I found is floated under English Law under the title of the Pacific Phosphate Company of London, but under the constitution three of the seven Directors must always be Germans. This condition was inserted after the acquisition of the Nauru concession.
The Company pays to Germany a minimum of 25,000 Marks per annum for the right to mine phosphate, and a Royalty of half a mark per ton for any quantity in excess of 50,000 tons per annum. It has been customary for this revenue to be paid direct by the Company in London to the Imperial German Government in Berlin. The Resident District Commissioner at Nauru has been in the habit of furnishing the Governor at Rabaul with a copy of the manifest of each shipment, when credit is taken in the Treasury books at the latter place, but as the amount is not actually paid there, the transactions are not included in the quarterly reports of the Treasury.
It was estimated that the output of phosphates from Nauru during the year 1914 would reach 150,000 tons, representing a revenue of 75,000 marks, but the outbreak of the war naturally upset all these calculations, and there has been a complete cessation of operations for 3 months.
The revenue during the year 1913 derived from sources other than phosphates, such as Customs duties, Poll Tax on white residents, and Native Taxes was 116,646 Marks, while the expenditure same period amounted to 31,895 marks.
There are two regular German Officials, viz. Herr Wostrack District Commissioner (2nd. class), whose salary and allowances amount to 8,300 marks per annum, and Herr Peters, Police Master, Postal Official, etc., who receives 4,640 marks per annum. There is also one medical man practising privately, who receives a salary of 1,200 marks per annum for attendance [to] Officials and Police.