Principals and agents: the activities of the Crown Agents for the colonies, 1880-1914

This article examines the Crown Agents, the Crown colonies' UK commercial agent, from a principal-agent perspective. It argues that the Agents maximized their self-interest through the provision of a quality/costly service, which reduced colonial criticism and the likelihood of closure and increased commission income. From the late 1890s, however, a fall in receipts led them to become more concerned with income maximization. They thus used their advice to the Colonial Office to influence policy for their own benefit, leading to the construction of costly and uneconomic railways, the issue of high cost loans, and the purchase of expensive supplies.