638
A-They very often do.
Q-In your opinion, Mr. Howard's Godowns were every bit as good and as convenient for Godowns as the newly built ones?
A-Yes.
HIS EXCELLENCY:-Are you endeavouring to explain Valuations 2 and 3 ?
Mr. CALTHROP-About the money lent I do not know; I am just asking Mr. Orange for his opinion.
HIS EXCELLENCY:-Valuation No. 1 is based on the value of land; No. 2 on the maximum possible rent; and No. 3 on the maximum rent received.
A-There was a steady gradual increase; in 1893 the business was worth a great deal less than in 1888. 1894 and 1895 were much better.
Q-Is it not usual to take a maximum ?
A--One must judge whether a business is increasing or steady. I do not think it would be fair to take a period of 9 years with regard to an increasing business, but, where you see a steady increasing business, I think you generally take a year or the maximum capacity. It may be that it would better suit a man to let his Godown storage for goods, or another purpose, rather than for financial business. Supposing a firm is going to run a Godown business, such as Jardine, Matheson, or some other Firm, then the Godown would certainly be rented on its capacity. I was never asked to make a valuation of profits. No one knows what the profits on his business are. By the net income is meant the net income from that property. 22,000 cubic feet is not the gross capacity. Probably 10 cents per ton was the proper price to pay at that time. It seemed to work in with the actual results of the earnings of the Godowns according to Mr. Howard's figures.
[Court adjourned at 5-20 p.m. until 2-30 p.m., 4th July].
4th July, 1905-2.30 p.m.
Second Witness-Mr. A. Turner (of the Firm of Palmer & Turner).
Mr. POLLOCK (cross-examining on behalf of the Crown):-Mr. Turner, in the beginning of the second paragraph of your Report you say-[reads from Report
Taking into consideration, &c." ]
(3
at it.
A-Yes.
Q-You mean by that as put back by the Reclamation?
A-As put back by the Reclamation.
Q-How did you arrive at $1.50 per foot?
A-This valuation was made by iny partner, but I also know how we arrived
Q-Did you not arrive at that valuation yourself independently of Mr. Palmer?
A-No. It is his valuation; I discussed it with him.
Q-What about the $1.50 per foot?
A-We valued the property immediately behind it at $1.25 but thought this should be slightly higher, so we placed a value of $1.50 upon it. The number of the other Lot valued was 801.
Q-What was that property used as?