478
THE HONGKONG GOVERNMENT GAZETTE, 27TH NOVEMBER, 1875.
in nearly the whole of the complaints that were laid before us, the Leases were purchased at a time of great commercial activity, and subsequent changes have turned a promising investiment into an unsuccessful speculation, of which the want of success has been, in many instances, aggravated by the amount of premium given by the tenant to secure the Lease.
13. The same remarks apply to portions of land along the Robinson Road, and the higher levels. of the City, which formed the subject of complaints to us, but which had been left by their owners in their natural state, unimproved by buildings or other expenditure. The complainants had given large premia for their Leases, ranging in amount from six years' to twenty years' rent.
There is now no demand for such land, and the lots are unprofitable and the Leases unsaleable. These were obviously speculative purchases, and are hampered by the interest upon the premium, which, in many instances, would, at 12 per cent, be more than three times the Crown Rent. Putting aside this interest, which we ought not to take into consideration, we doubt whether if the circumstances of the Colony offered a prospect of a fair return for building on these lots, the Crown Rent would be found to interfere with the work being undertaken.
14. It is necessary to refer to the case of one gentleman, who submitted that he is specially entitled to a reduction of his rents, on account of the large amounts which he pays yearly for unpro- ductive lands. It appears that besides lands which give him some return, he holds twenty-two allot- ments at a rental of $2,440, from one of which he derives $30 for the present year, the others being entirely unprofitable. But it appears that he paid premia amounting in the aggregate to $15,710 in order to obtain the Leases of these lots to the exclusion of other intending lessees. It also appears that the Crown has, in the last three years, resumed fifty-four other lots at the request of this gentleman, and remitted to him very large arrears of rent, and, having regard to our previous remarks, we feel that the case is beyond our powers, and that it is to His Excellency that he must look for any relief from the unfortunate position in which he is placed.
15. We have already referred to Marine Lots 20 and 21 as not being liable to the rent of £40 per quarter acre. These Lots adjoin the Commissariat Buildings, and the tenant not having been required to contribute to the erection of a Praya, did not join in the agreement above mentioned and remains at his old rent, under the original Lease for 75 years from September, 1844. The harbour in front of these lots has decreased in depth, and for many years the process of silting up continued steadily, so that junks which formerly discharged their cargo on the shore at all times of tide can now only during two or three hours of high water come alongside a jetty run out from the bank. Other Marine Lots have the advantage of a Roadway along the Praya, which at the same time scarcely interferes with their access to the water; and the rent of £40 per quarter acre is less than what is paid upon the two lots in question, and the term is 999 years instead of 75. It seems to us that this case is one without parallel, and that the tenant has a fair claim to relief so far at any rate as to place him on an equality with other Crown tenants. We would, therefore, recommend to His Excellency to grant a fresh Lease of these lots for the term of 999 years from the date of the original Lease at the rent chargeable upon other Marine Lots, viz., £40 per quarter acre.
16. The want of a Praya frontage seems, however, to place these lots in their present condition on a level rather with Inland Lots, and we would suggest that the full rent be not demanded. The Inland Lots on the other side of the Street are let at a rental of about £30: and having regard to the fact that the sea access is not without value, we consider that £35 per quarter acre would be a fair rent for Lots 20 and 21, including certain land which the tenant has gained by encroachment upon the harbour.
17. We suggest that this, or any other reduction of rent upon Crown Leases, should be made as a concession by the Crown for a certain number of years, three or five, so that if intervening circumstances should have raised the value of the property, the Crown shall not lose the benefit of the advance; while it is fair to suppose that the Crown would, from time to time, renew the concession for similar periods, if circumstances remained unchanged. The Leases are so long, and the fluctuations of Colonial values so great, that a remission in perpetuity seems unsuitable to the circumstances of these holdings.
18. In conclusion, we desire to express our thanks to the officers of the Treasury and Land Office for their readiness in preparing any returns that we had occasion to call for.
JOHN BRAMSTON,
C. MAY.
P. RYRIE.
H. LOWCOCK. J. M. PRICE.
Chairman.
Hongkong, November 12th, 1875.