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as at present, but while we do propose that the administration of the Department be transferred from the President, ds Administrative Head, to the Board as a Body, the actual control of the finances remains as at present in the hands of the Governor.
377. Our suggestion is that the Sanitary Board should prepare the yearly estimates for the Department.
These will as hitherto be submitted to the Governor who will accept or modify the estimates a may appear expedient and incorporate them in his Annual Budget.
378. The Budget having been rassed by the Legislative Council, the money voted for the Department will then be at the disposal of the Sanitary Board, who will be responsible for its proper expenditure in accordance with the terms of the vote, in exactly the same manner that the head of one of the large spending Depart- ments, the Public Works Department, for example, is responsible to Your Excellency for a similar vote.
379. The Sanitary and Building Board will have no power to spend more then the amount voted, and cannot, therefore, incur expenditure which has not been authorised.
THE HONGKONG WEEKLY PRESS AND
It will only remain with the Board to make such recommendations as may at times appear desirable if the vote is likely to be exceeded and this can be rejected by the Governor, or laid before the Legislative Council, if approved.
380. though it is trus there must be anį unofficial majority on the Sanitary and Building Board, their powers are controlled by the Governor, who with an official majority on the Legislative Council will, as heretofore, direct the finances of the Colony, and keep snch check as may by necessary on the spending powers of the Board, as is done in the case of any purely Government Department.
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381. We would beg remind Your Excellency that for many years the Sanitary Board had the control of the money voted for the Department and that this was confirmed by the Principal Ordinance No. 1 of 1903.
This power, which we now ask be returned to the Board, was only taken away and transferred to the President of the Board by the passing of the Amending Ordinance No. 23 of 1903.
382. Before closing the Report the Members of the Commission consider it desirable to make some reference to the nature of the evidence laid before them; and the great difficulty experienced in sifting out the truth from the mass of evidence given.
383. It was reported quite unofficially that so soon as it was generally known Your Excellency intended to appoint a Commission to enquire into the working of the Sanitary Department, steps were taken by individuals to destroy traces of what might prove to be incriminating evidence.
384. We were further given to understand that in certain cases some of the staff of the Sanitary Department, who have had irregular dealings with certain Chinese contractors and others, actually called upon these men and suggested the advisability of destroying such incriminating documents as might be in their possession.
385. The Commissioners from the first found that all classes of Chinese were most reluctant to give evidence of any description, and in many cases were obviously doing all possible to evade meeting the enquiries of the Commissioners for fear of the consequences to themselves if they gave evidence against the Sanitary Inspectors.
388. Fortunately we were able, in a few instances, to obtain possession of books which have enabled us to follow up a number of cases where bribes or black mail have been extorted, but in most of the cases where leading contrac. tors and others have been before the Commis sion, no proper books have been produced.
387. It is, of course, well known that the ordinary business Chinaman has a very perfect system of book-keeping, and in those cases where the existence of these documents were denied, we considered that we were justified in assuming that there are reasons why the books could not be put before us.
388. We must remind Your Excellency that in China the system of blackmailing is unfor- tunately a matter of every day occurrence amongst Government officials (Yamen runners and others) and the civil population. Any Chi naman consequently settling here not only
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accepts but is quite prepared to find similar conditions prevailing in this Colony as that which obtains in his own country.
389. Conclusive evidence has been brought before as to show that bribing and blackmailing is of common occurrence, permeating the entire service from the Senior Inspectors downwards, This being so, the Chinese, as a matter of course, more than meet the Government officials half way, and in many cases readily offer presents before they are demanded.
390. That it is recognised that these payments are illegal is clear from the statements made before the Commission as to the manner of payment. How every precaution is taken that no witnesses are present, and when the sums have been entered into the account books, they appear as "coolie hire.
sampan hire, substitute labour and s› forth; in ouly one case did the word "bribe" appear, while if the payments were entered as to an inspector, in most cases a flotitions name was used, or merely the number of the district to which the inspector belonged was given.
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391. The fact that in many cases no books have been produced, while others have been found to have been mutilated or altered satisfies us of the correctness of the information given privately, while it has already been clearly proved that instances have occurred where an individual inspector has attempted to prevent witnesses from giving evidence before the Com. mission, and other cases bare been before us, which however we have been unable to confirm, as the native witnesses for fear of trouble have left the Colony.
392. The excuses made by many of the witnesses as to why they had lent themselves to a state of affairs of which they disapprove, and which they know to be wrong, may be briefly summed up as follows ;-
If a contract be remunerative, money is paid to the inspectors and other subordinate officials rot particularly for any direct service rendered, but in the hope of establishing friendly relations and ensuring good results in the future.
The inspectors inform these contractors that their work is not satisfactory and cannot be passed, then follow it up with a request for a loan, which it is clearly understood does not involve repayment.
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One contractor states " All inspectors want presents, and another witness stated all con- tractors give presents to the inspectors.
If such presents are not made, delay takes place in issuing permits or the work is reported as not fit to pass and has to be redone. Another witness stated they were "under the rule of the inspector" and they were forced to make presents in kind or money.
393. A large number of Chinese witnesses have given similar evidence, all printing to the fact that contractors, shopkeepers, restaurant keepers, &c., pay bribes to the inspectors in order to purchase their goodwill and to avoid possible trouble, or to get work passed.
394. It appears that the large contractors and architects have nothing to do with the bribing, The usual custom is to sub-let, and the sub- contractor is supposed to do all that is necessary in this direction, in order that the work may be passed.
395, There appears to be little doubt that certain contractors, such as Foo Sik, Sam Iu, Tsang Ying and a few others are the favoured contractors. These men alone can accept and carry out certain forms of contracting, as other- wise work will not be passed by the inspectors.
396. Evidence has been given where a Chinese architect and others have been informed by Government officials that they had better employ certain contractors, while if they attempt to get work done by their own men the work is rejected by the inspector. The favoured cou- tractors for building, laying of drains, lime washing, &c., are thus able to make excessive charges, and the public generally have to submit to these exactions.
397. With large contractors for Europeau firms, the ques ion does not arise. The con- tractor is engaged, and as a matter of course in making his estimate allows sufficient to cover all such irregular payment as may have to be made by the sub-contractor while the contract is being carried out. Even wealthy Chinese firms such as the Yuen Fat Hong have to submit to such exactions, as they say there is no help for it. Shop keepers, restaurant owners
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(May 7, 1907.
and others say they pay these squeezes because it is cheaper than being continually harramed by sanitary officials.
payment of a bribe, but it is well understood on 398. In many cases no demand is made for both sides why the delay in passing work arises, and how the difficulty can be surmounted,
These exactions vary from considerable suma of money to the demand for a few eggs at reduced price, or a few bottles of beer.
No man is apparently too poor to be exploited, and there is no form of exaction, however mean and contemptible, to which the Inspectors and servants of the Sanitary Department will not stoop.
399. It is evident that the charges generally for building, &, in the Colony would b considerably lower were it not for the bribes which have to be paid.
exactions, he is ruined, and in order to retain If a contractor attempts to resist these
his business, he is forced to submit.
A case has come before the Commission where a man of some standing had the courage to refuse to be blackmailed, and has been left alone by the Inspectors, but another man of less position has been driven out of business, as his work was not passed without payment of bribes.
Sanitary Officials was in many cases very real, 400. It was very evident that the fear of the and the witnesses only gave evidence when they found the Commission was already in possession of sufficient facis to prove that they know the full details of the particular case they were investigating.
401. To illustrate this fear which existed, a well-to-do Chinaman after having been repeated. ly assured by the Commission that he would receive full protection were it required, did in the end leave the Colony under threats of violence from one of the Inspectors, consequent- ly becoming bankrupt, losing a remunerative business. Repeated assurances personally given to this man in his native of protection village have as yet failed in inducing him to return to this Colouy, where his farther evidence was required by the Commission.
402. The Commissioners have, as Your Ex- cellency will see from the evidence taken, investigated a number of cases of reported extortion on the part of members of the Government Service, and where possible have followed the enquiry up to a point where wO have considered ourselves justified in specially reporting to the Government.
403. Some witnesses have been before us who however have denied all knowledge of the reported cases of bribery, and it was our inten- tiou to have returned to this part of the enquiry later.
We felt however that this is impossible, and having completed our enquiry as to the first part of our Commission, we merely finished examin- ing into such cases as had already been in part gone into, and which seemed to offer a speedy termination to our investigations,
404. There are however a number of other cases with which we have been quite unable to deal; also other methods of corruption, which we have not had time to investigate fully, but which appear to us to require consideration,
405. The most noticeable of these is the payment by the Government of 40 cents to contractors such as Sam In for opening pp and closing holes made in the concrete floorings of native houses, while these were being inspected.
106. A number of bills have been produced showing that considerable sums have been paid on certificates signed by certain of the Sanitary Iaspestors that this work had actually been carried out by the contractors in question.
407. As a matter of fact, accounts certified by Inspectors have been produced before the Com mission calling for payment for certain floors which it is alleged have been opened and repaired by Sam fa, while witnesses have appeared before us who have stated that the floors have in some cases not been opened at all, while others again have been opened and repaired by these same witnesses.
A careful investigation of this matter might, we think, demonstrate that considerable cor- ruption has existed in this direction.
408. The Commissioners however feel that their work must be brought to a close, and that it is impossible for them to continus indefinitely investigating cases which it would appear are practically interminable.
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