651
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A-Yes.
Q-Have you ever had anything to do with valuing the property for rating purposes?
A-Not for rating purposes.
Q-Have you ever had anything to do with valuing it for a prospective tenant?
A-Ten years ago, I had.
Q-Do you remember what a tenant would pay for that property then?
A-1 know, but I forget the exact year. The amount was about $110,000;
that was when Sir William Goodman was here.
Q-You know the property was bought in 1881 for $85,000?
A—I am quite aware of that.
Q-And it was not then quite the 32,000 square feet in area?
A-Yes; it was then 32,820 square feet. The Government Lease was pre- pared in 1877. I made the Lease and I made the Survey.
Q-At that time, the Purchaser paid $2.60 per foot?
A-$2.60 per foot, or $85,000 for the Lot,
Q-In 1884 it was sold by the Mortgagees, was it not?
A-A Chinaman paid $85,000 for that Lot in 1881, and he mortgaged that property to the Hongkong Fire Insurance Co. for $65,000.
Q-Who made the valuation at that time?
A-There was no valuation.
Q-The Hongkong Fire Insurance Co. advanced $65,000 on the Lot?
A-Yes; in 1881. In 1884 they had to foreclose, and Stephens bought it for $65,000, and be in turn mortgaged it to the Hongkong Fire Insurance Co. for $60,000.
Q-What amount of margin do you allow as a rule in lending on Mortgage?
A-When I have. this kind of valuation to make, I base my valuation as a rule on the income. I should consider that a property such as the Claimants' would be safe for Mortgage purposes for a Loan of $80,000.
Q-In 1884, it was a Lot with absolutely nothing on it at all?
A-I am aware of that.
Q-There were no profits then?
A-No.
Q-Don't you think the Hongkong Fire Insurance Co. were on the safe side in granting this Mortgage to Mr. Stephens ?
A-The Hongkong Fire Insurance Co. are always on the safe side in granting their Mortgages.
Q-What do you think was the value of the property in 1888, that is, after the Godowns had been built ?