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tion on account of the Reclamation as $164,000. It was further stated that Messrs. Palmer & Turner valued the land on the 19th September, 1899, after it had been depreciated by the reclamation in front of it at $1.50 per square foot ($48,721.50 for 32,481 square feet).
5. In paragraph 12 of the same letter the depreciation was put at $230,277 made up as follows:-
Value of former M. L. 184 (32,481 sq. feet) at rate
for which new M. L. 184 (15,200 sq. feet) had been recently sold,..........
Estimated value of Buildings,
Value of Property,....
.$ 285,277
.$ 55,000
.$ 340,277
$ 230,277
Less Sale Price of Lot 184 on 30th September, 1899, $110,000
Depreciation,
6. In paragraph 9 of a letter addressed on the 16th July, 1904, by Mr. Howard to the Under Secretary of State it was stated that the Hongkong Govern- ment received for
New M. L. 184,.
.$ 133,500
And for the right to erect a pier in front of it, ......$ 15,000
or, altogether,.
And had paid for its reclamation,
Obtaining thus a nett profit of
.$ 148,500
$ 32,897
$ 115,603
less some interest on the money paid for reclamation, and it was suggested that this amount should have belonged as a matter of right to Messrs. Howard and Stephens.
7. In a letter addressed on the 1st August. 1904, by Mr. Howard to the Under Secretary of State he suggested that the following principle should be adopted :—
"In no case should more be claimed as assessed damages than the amount realized by the sale of the new Lot" and pointed out that the sale of the new Lot had realized $133,500.
A 15.
[7689/04/C.O.D.}
The Honourable F. H. MAY, C.M.G.,
Colonial Secretary,
Hongkong.
18, BANK BUILDINGS, HONGKONG, October 10th, 1904.
SIR,-I have the honour to acknowledge receipt of your letter of the 6th instant, forwarding me a Memorandum summarising the Claims made by Mr. Howard and myself with regard to the losses sustained in connection with Reclama- tion in front of Marine Lot 184.
The claims and mode of arriving at them having been formulated by Mr. Howard personally, I find it necessary to submit the letter and Memorandum to him for the purpose of obtaining his remarks and statements in support, and by the mail leaving the 8th instant I forwarded him copy of your letter and Memorandum.
I have to ask the favour that the matter be allowed to stand over until I can hear from Mr. Howard in reply.
(Sd.)
I have, &c.,
MATTHEW J. D. STEPHENS.