Being CHAPTER ELEVEN of The George Steuart Story 1835-1985 ++
When a young Sri Lankan walked into the office of George Steuart on February 1, 1953, no one is likely to have imagined that he would become not only the first Sri Lankan Chairman of what was then essentially a British firm, but also the youngest man to hold that important office.
The young man, whose name was John Francis Anthony Paul Peries, and was generally known as Tony Peries, had been edu cated at St. Joseph’s College, Colombo, and had applied for a post as a trainee Tea Taster. His father, ·W. Peries, a Director of Mackwoods, was held in the highest esteem in agency circles.
At that time D.C Wilson was Chairman of George Steuarts and the other British Directors were Gourlay, Kerr, McLeod, Nelson, and Gilmour.
In keeping with a practice that went back to the earliest days of the firm the Directors decided that the young recruit should sign Articles of Agreement and the wording of this document is strongly reminiscent of the Deed of Indenture which Capt. James Steuart, the founder of the firm, signed with his father in 1805 Agreement which Peries and the Directors signed was:
Articles of Agreement
Made the first day of February one thousand nine hundred and fifty three between D.C. Wilson, W.H. Gourlay, C.G.C. Kerr, A.D McLeod,, C.M. Nelson, and R.J Gilmour carrying on business under the ·name and style of George Steuart and Company at 45, Queen Street, Colombo 1 {hereinafter calledthe employers) of the first part and John Francis Anthony Paul Peries of 7, Elibank Road, Colombo 5 {herein after called the said apprentice) of the second part.
This Indenture.witnesseth firstly
that the said apprentice of his own free will and consent doth place and
of the said term such leave to be taken at the convenience of the said employer and always provided that leave of absence for one year not taken or granted in that year shall not be available during any other year of the said term
and seventhly
that the said employers undertake to remunerate the said apprentice during the first year of the term by payment of Rs.3,600/ by twelve monthly instalments of Rs.300/ during the second year of the term by payment of Rs.4,200/ by twelve monthly instalments of Rs.350/ and during the third and final year of the said term by payment of Rs.4,800/ by twelve monthly instalments of Rs.400/ each instalment hereunder being payable as at and on the last business day of each calendar month the first instalment being payable on the 28th day of February 1953
Peries was the last executive to sign such an Agreement. Since then executives receive letters containing their individual terms and conditions of employment, but all letters of appointment issued to executives still contain a sting in the tail:
“Our office hours are from 8.30 to 4.30 p.m. on working days with an hour’s interval for lunch, the office norn1ally being closed on Saturdays and Sundays, but you will no doubt realise that for an executive the timely discharge of responsibilities is of much greater importance than the observance of scheduled hours. We reserve the right to vary these hours if we consider it desirable to do so.”
Peries was initially appointed to the Produce Department which he eventually took over from G.H Savage when he retired in 1955. He became the first Sri Lankan Director of the finn in 1963.
Peries proved an apt pupil as stories soon circulated of his virtuosity as a tea taster. On one occasion he remarked that there was something wrong with the water in a brew. On inquiry it was found that the distilled water normally used had run out of supply and some other brand had been substituted. On another occasion Peries on testing a sample of tea said there was a fault in the Number Three Roller on the estate from which that sample had been sent. Inquiries proved him correct.
Peries had wi de interests. He joined the Ceylon Artillery Second volunteer Regiment as a Second Lieutenant and wasa Lieutenant when he resigned in 1955. He learned flying and earned his Wing
fromthe Flying Training School at Ratmalana. After having qualified as a pilot, he took to yachting. He was a mmember of the S.S.C., the Motor Sports club and the Royal colombo golf club and represented the Otter Aquatic Club in swimming and water polo. He was alsoa keen student of international affairs. Peries, like his predecessor Waddilove, was a Roman Catholic.
Peries became the first Sri Lankan Chairman of George Steuarts in 1969 with the departure of Waddilove and after the election of Mrs Sirima Bandaranaike’s United Left Government on May 27, 1970, the Agency Houses were subjected to a long and searching probe with the appointment of a Commission of Inquiry into Agency Houses. The Commission, which was appointed in 1971, submitted its final report in December 1974 Peries and all the Directors of the firm appeared before the Commission whose Chairman was Bernard Soysa, the Parliamentary Secretary to the Minister of Finance.
In both its interim and financial reports the Commission had nothing of an adverse nature to say about George Steuarts and only reproduced statistics and factual data which the firm itself had provided in reply to questionnaires
The report revealed that in 1970 George Steuarts managed 23 companies incorporated in Sri Lanka, and 23 incorporated in the United Kingdom
Of the total acreage managed by all Agency Houses in Sri Lanka, George Steuarts controlled the largest percentage of tea lands with 17 6 per cent. The second highest was Carson Cumber batch and Leechman and Co which controlled 14 9 per cent, and third were Whittalls Estates and Agencies with 14 7 per cent
In the case of rubber, Carson Cumberbatch and Leechmans had the largest percentage of lands with 29.1per cent. Whittalls were second with 14 2 per cent and George Steuarts third with 12.9 per cent.
On the Ceylonisation of staff in relation to executives the Commission’s report showed that while there had been 13 non national executives, with no nationals as executives at George Steuarts in 1946, the position in 1960 was that there were 10 non-national executives, and 15 nationals as executives. In 1970 all 28 executives were nationals.
In respect of Directors there had been five non-nationals as Directors in 1946, and no nationals. In 1960 there were six non nationals as Directors, and no nationals By 1970 there were two non-nationals as Directors and six nationals.
In the holding of equity capital non-nationals held 91 43 per cent in 1965, while nationals held 8 57 per cent. By 1973 non nationals held 18.33 per cent, and nationals 81.67 per cent.
On the role of Agency Houses in the economy of the country the Report disclosed that, of the Island’s total production of 468 million pounds of tea in 1971, 260.8 million pounds or 62.1 per cent of total output was produced on estates managed by Agency Houses
Rubber estates managed by Agency Houses produced 95.9. million pounds or 27.3 per cent of the total production of 350.9 million pounds.
Coconut estates managed by Agency Houses produced 86 million nuts or 3.9 per cent of the Island’s total production of 2,447 million nuts.
That production on estates controlled by Agency Houses was well above the national average was seen in the fact that while Agency Houses controlled 46.8 per cent of all tea lands, these estates produced 62 1 per cent of the Island’s total output of tea. Similarly, Agency Houses controlled 20 9 per cent of all rubber lands but these estates produced 27.3 per cent of the national output. No breakdown was provided in the case of coconuts where estates controlled by the Agency Houses accounted for only 3 9 per cent of total production
The Report of the Agency Houses Commission published in December 1974 ultimately became of only academic interest as its recommendations were overtaken by events and Peries himself had left Sri Lanka on March 18 1973. His departure literally overnight caused a sensation 1n George Steuarts as it had been kept secret from everyone except one Director, who was sworn to secrecy. Peries’s sudden departure was a reaction to a period of gloom and uncertainty which had begun with a warning by the Minister of Finance, Felix Dias Bandaranaike, that the private sector was facing its last chance and that if they did not provide employment to unemployed youth, they faced the prospect of being hung up from lamp posts as had happened elsewhere. In 1971 the Janatha Vimukthi Peramuna (Peoples Liberation Front) which consisted entirely of youths, staged an insurrection and gained control for some time of parts of the Island. The departure overnight of the Chairman. who was a national of the country, contributed to pessimism in London and other capitals of the world about the future of Sri Lanka, and [at some point] after Peiris’s departure George Steuarts lost the agency of Consolidated Estates Ltd. to another Agency House.
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YOU SEE ABOVE the pages 104-09 of The George Steuart Story …. I have a copy of the book because I received it as a GIFT from Trevor Moy, one of the Directors in 1985. Moy’s covering leter indicates quite clearly that the book was composed by Donovan Moldrich (then an experienced newpaper reporter and Editor; and a good friend). There is no indication within the book of Donovan’s role in the enterprise. I will be composing a separate item on the patriotism and work of Donovan Moldrich — work pursued with support from his intelligent wife Shona.
They can surely rest in peace.
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A NOTE
For reasons unfathomable this book proved extremely difficult to reproduce in an usable digital mode. After I got it copied by an outfit in Adelaide, David Sansoni in sydney and KK de Silva in Colombo grappled with this task and the result that you see is the product of their wotk with the finishing touches from my hand. Grateful as I am to Trevor Moy, this dimension of his legacy is quite unforgivable.
ALSO NOTE … https://en.wikipedia.org/wiki/George_Steuart_Group
Dear Mr Peries, My Dad, Mr Casparus Paulusz, was a senior employee of George Steuart and Co: from c. 1956-December, 1961. I think Dad, who had held the position of Assistant Commissioner of Income Tax in what was then the Ceylon Public Service, was a taxation specialist at George Steuart’s. I would love to obtain a copy of the book about the Company, either in digital form or – preferably – as a book. I did not know of its existence until just now, and will search for it. Perhaps Vijitha Yapa has a copy, or Cargills? My very best wishes to you, and your family, Yvette Paulusz.