Shanghai LandTM
Land Valuations
Mr. N. L. Sparke Outlines Guiding Principles for Mortgage Purposes
Shanghai, May 2-Some interest ing particulars on "Valuations of land for mortgage in Shanghai" were given by Mr. N. L. Sparke, F.S.I., at a meeting of the So- ciety of Chartered Accountants in China at the Shanghai Club yes terday evening, when the chair was taken by Mr. H. M. Mann, A.C.A.
A Funk Hole,"
During the past twenty years, few cities in the world have mads a greater proportionate growth in terms of property values than Shanghai. The principal reason for this phenominal growth may, I think, be summed up in the one word "protection," although the drop in silver has been a contribu tory factor.
Shanghai has been called the big gest funk holo" in the world. In times of trouble throughout China, people of all nationalities rush int Shanghai for protection, thus swell ing the population and creating an ever increasing demand for accom madation of all sorts. Neverthe- less, it is probable that the enormous development which we have take place would have raver been possible without the facilities or borrowing which land and build sings are able to provide for capita-
its and nanciera."
Having in mind the very large proportion of land and buildinga in Shanghai which are mortgaged, it
mortgage. Apart from the IROS that the percentage value covered by the land is probably low, addi- tional outgoings occur in apartment buildings, for example, lift, power, wages and upkeep, lighting, hout ing, etc. Also apartment buildings Are very subject to competition in the form of new and more modern buildings which cause tenante to remove from the older type into newer apartments containing the latest modern amenities. |
Repairs and Upkeep.
•!
tention to the state of repairs in The surveyor must give close at which he finds the buildings and if it appears that within a year or two extensive repairing work will
HONG KONG DAILY PRESS, SATURDAY, MAY 6, 1933
WANTED INT
MANILA
BOYCOTT PICKET IN MANILA
Young Filipino Charged Hongkong Goods Seized
QUESTION OF EXTRADITION
1.
for Inquiries
CHINESE CHAMBER
MEETING
The extradition proceedings against Timothio Evangelista, alias
A curious case which reveals the Joseph Evangelist Bess who strength of the Chinese anti-Japan wanted by the Philippine authorise activities was discussed at the ties in connection with two alleged Chinese Chamber of Commerce yes armed robberies in Manila, were commenced before Mr. Schofield at terday, when the monthly meeting
of that body was hold.. Central Magistracy yesterday.
Mr. J. A. Fraser, assistant At torney-General, appeared for the Crown, and the fugitive was presented by Mr. F. G. Nigel.
Formal evidence was given by several witnesses, including Mr. for U.S.A. and Mr. A. W. G. H Douglas Jenkins, Consul-General Grantham, assistant Clonial Se cretary, after which the case was adjourned until Friday."
A large number of other matters were discussed, and, judging from the business dealt with, the Cham- rber evidently enjoys the trust and the confidence not only of Chinese community in Hong Kong but also in other parts of the Far Esat.
Detective Sergeant James Allan said that on April 12, by virtue of a warrant he arrested Bean out Supreme Court, and Brought him to the Central Police
the
141 letters were received during the It was stated that no fewer than month, dealing with various com mansial questions;
One interesting item concerned the activities of the Anti-Japanese association in Manila. Recently a Chinese firm in Manila ordered
quantity of black and red piecegoods from two Chiness business houses in Hong Kong. These Hong Kong firme have for long been doing busi ness with Manila and their names are familiar to the Chinese com-
Evidence was then given by Mr. A. W. D. II. Grantham, assistant Colonial Secretary, who stated that he received the documents in con nection with the case on April 2munity in Manila. from Mr. Black, vice-Consul for the U.S.A.
have to be carried out, his value must be reduced accordingly. It is possible and advisable to have a repairing clause in the mortgage side the deed. Such a clause gives power to the mortgages to instruct bis aar-Station. veyor to report on the condition of the property and a breach or such a covenant to keep in repair can give the right to the mortgagee to call up the principal and terast. This is an important con- sideration, because it is quito por- sible for a property to deteriorate considerably due to neglect and the mortgagee might have no power to deal with such a state of affairs.
I will now refer to the various classes of mortgagees alluded to at
Classes of Mortgages.
in
11
When the goods reached Manila, the Boycott picket is alleged to have Mr. Douglas Jenkins, Consul-seized them on the ground that they General for the U.S.A. was then were of Japanesa origin. The fra- called, and he explained the trea-porter of the goods was threatened ties signed between the Uniten with all sorts of punishment for States of America and foreign coun- having dared to import them. tries, including this Colony in Naturally the importer fell back connection with extradition.
on the Hong Kong firms and the In reply to Mr. Nigel, Mr. Jen-latter, being anxious not to be sus king asid that he could not say pected among the Chinese of whether the treaties he had just Manila of exporting Japanese montioned affected the people of the goods brought the matter to the Philippines or not.
notion of the Chinese Chamber of Commerce here.
is unnecessary to point out the,im-i the beginning of the paper. portance of the subject of valun-j- tion for mortgage. Notwithstand- { ing the general trado depression, money loaned out en mortgage, in 1. Where the mortgagee is Shanghai has paid its owner well. private individual: In this case, and it is doubtful, whether any although the general principles or
Mr. Nigel: Can you say whether form of investment bas heen 50 valuation for mortgage remain the there are any treaties or acts which lucrative and so safe. High rates saine, the valuer should carezuity affect the extradition of the people of interest have been obtained with have in mind the fact that a per- of the Philippines? Perhaps there remarkably little risk.
yate individual does not want to are, but I cannot say. have to take possession of the pro- Have you had any legal training perty. This is particularly import-Yes. I studied law for four But during a period when specu-ant in the case of a private indi- years in a lawyer's office in South lative buying is in full force-some, Fidual because he is not equipped for Carolina. times called & boom-the prices ob. handling property, has no know- tained under these conditions must ledge of the management thereof be almost ignored in the ease of and will probably be put to the valuation for mortgage. Prices so expense of appointing agents for
the property.
Boom Periods,
obtained often have o relation to the income which can be derived from the property, that is to say the true economic value is lost sight of. If a surveyor should base his mortgage: valao on auch a stan dard, he might find in the case
of a slump that he is left high and dry and with very little to substantiate his valuation. Specu- lative buyers are not very much Concerned with the probable return, their only idea being to sell to someone else at a higher price, un til at last somebody has to hold the baby, a baby that has to be fed on that most expensive form of nourishment-interest. It is of
The
2 Where the mortgagee is a financial or trading concern: same remarks apply as in the above case, though perhaps not quite so urgently,
£04
!
Did you in fact practice-No. 1 cannot say that.
THE BRIGANDS OF FUKIEN
Missionary Lady's Odd Experience
(From Our Own Correspondent)
BIENYO, FUKIEN, April 91. Miss Beta Scheirich a member o. the Methodist Episcopal Mission working at Sisuyu, recently had an experience with bandits while mag- ing a journey from Futsing to: Hinghwa. The public car in which she was travelling had just reached the top of an isolated pass when side of the road as if to board the a young man stepped out from the car.
As the car came to a stop. he covered the driver with his gun raske a disturbance as he had a and ordered the passengers not to large group of followers near at hand. Almost immediately the car brigands who rushed down from was surrounded by a number of
the billside. The
passengers the car. Miss Scheirich got out on were told to get out and stand by
the opposite side of the car from which the Chinese passengers alight- ed, fully expecting to be taking captive. The brigands seemed to be in feverish haste and soon inade off with a Chinese captive and the bag. gage of the passengers leaving the missionary, unmolested.
re-
However her suitcase containing was several rather valuable articles.
carried
Sha away. turned to her station with- out further mishap. To her great surprise she had word from the police station à few days later that a suitcase had come into the pos session of the police and requested a description of her lost case toge ther with the list of articles it contained. It proved to be her lost suitcase and it was returned to her Meanwhile a sample of the piece without the loss of one article. It goods was forwarded to the Chinese seems that the brigands after se Piecegoods Guild for their opinion cond thought decided that they did as to whether or not the goods were not want this baggage of the Japanese. The decision was that it foreigner so took it back and set it was Shantung silk, dyed red.
down in the middle of the road. Shantung silk of that quality Some coolies discovered it and at is Japanese and the exporting once began a squabble as to who firms immediately revealed to the should possess it. Just then the Chamber of Commerce the local firm police came along and took posses- who had supplied the goods. Thesion of it with the results that it firm in question denied that it was was duly returned to the rightful Shantung silk, and claimed that owner. the goods which they supplied were piecegoods bought from a European firm which they had dyed. They produced a sample, but this sample differed from the sample sent from Manila.
Fulden Fruit.
•
Mr. Fraser then interposed by saying that Mr. Jenkins in his cap. acity as Consul General would un: derstood the law on these matters.
Mr. Nigel Mr. Jenkins is the Consul General in Hong Kong and we do not know whether he has any direct knowledge of the law of
This section of Fukien is noted the Philippine Islands. Mr. Fraser
for its fruit and especially for the 3. Where the mortgagee is a (to Mr. Jenkins): Do you know land company: In this cass the if, by the law of the United States, decided that these facts should be is dried in large quantities and The Chamber at a special meeting Lungan or "Dragon Eye" fruit. It valuer can take a little more risk there are special acts provided for wired to Manila as the names of shipped north. September always and advise a slightly larger per extradition between State centage loan because in the event State We have extradition be wise suffer because of a lapse by local merchants and shipping com- and the exporting house would other witnesses & great rivalry among of foreclosure the land company is fully equipped for taking over the United States.
tween the various states of the the firm that supplied the goods. panies in getting the first ship load. However, at the last moment the north to the Ningpo and Shanghai without any added overhead expen-
perty and can handle the same Besa's Alleged Offences.. two firms concerned appealed to the markets. A part of the landscape Evidence regarding the robberies Chamber not to send the wire, the here is the numerous orchards of tion to hold the property for a
Such a company is in a post-alleged to have been committed h reason being that they had sent so Lungon Fruit trees. In the early possible future rise in value, and Laparal of the Secret Service of who is to blame in the present case, frosts occurred which we have wit- Besa was then given by Mr. A. Y much to Manila from the supplier spring one of the most devastating - the utmost importance that may eventually even succeed in ob
mortgagee should not be left intaining a profit.
the Philippines. He said that he and they were in danger of tremen-nessed in orer twenty years of re- this position.
was designated as an agent by the dous business losses.
sidence in this section. It left the Trustees Act.
Governor-General of the Philip-
tree tops looking as if they had pines to bring the documents per Local weaving and spinning face been scorched by fire. This is just Mortgage for trustees: taining to this case to the Consultories, who produce singlete and the time when normally this fruit In this case the surveyor incurs a General in Hong Kong. He was a socks in large quantities, have ap- is in bloom. But there are very serious responsible and not more member of the Philippines bar, and pealed to the Chamber to exert their influence with the Chinese authori- than two-thirds of the value should had practised for twelve years.
Witness then produced an be recommended as a loan.
au- ties with a view to secure a redue thenticated copy of a judgment de tion of tax on The Trustees Act 1893 Section 8livered by the Court of the Firm Factories claim that the capital their goods. The reads as followe:--"A trustee lend: Instance in Manila, referring to which supports them and the ma- ing money on the security of any Besa. property on which he can lawfully Evangelista, he was tried on two and it is not fair for the Chinese In the name of Timothio terials they use are entirely Chinese lend shall not be chargeable with charges of robbery, one on Decem authorities to treat their goods a breach-of-trust by reason only of ber 20, 1927 at No. 625, R. Hidalgo British goods, merely because they the proportion borne by the amount Street and the other on January 6, happened to be established in Hong | of the loan to the value of the 1928 at No. 152, Gardenia Street. Kong. properties at the time when the Besa was sentenced on each count loan was made, provided that it which was set out in the judgment, appears to the court that in mak- ing the loan the trustes was acting & report as to the value of the property made by a person whom
It cannot be said that there is - very activa and live land marketi in Shanghai, at least at the pre sent time, and therefore it may not always be easy to realise a forced sale at very short notice. For this reason, the formula which a valuer should have in mind is the price which would be paid by a willing purchaser to a willing seller. The valuer, of course, cannot guarantee to find a purchaser, he can only with the use of all possible skill and care advise the mortgagee what should be a fair price at the date of his valuation.
Different Classes of Property. In a paper I read some years ago, I suggested that the differant classes of property in Shanghai "may be graded in the following or
der of merit, from the point of view of security,
1. Chinese shops and houses.
2. Foreign shops,
Small foreign houses.
4. Apartment Houses.
t. Godowns,
factories
4.
ነ
Factories' Appeal.
It was decided that the Chamber should intercede with the Chinese authorities..
Sign of the Times, That the Chinese business man is
few blooms indicating that the crop will be almost a total failure. This is one of the few exports of this trade between exports and imports section relied upon to balance the and it is needless to say this disas tor will have serious effects.
WUCHOW NOTES
SUMMARY JUSTICE ON Á
MOTOR DRIVER
(From Our Own Uorrespondent)
Witness further added that warrant for the arrest of Besa in any part of the Philippines was issued on March 22 this year. He also suffering from the trade de- he reasonably believed to be an first met Besa in 1921 and knew pression was revealed by the fact able practical surveyor or valuer him well socially
that no less than sixty members of instructed and employed indepen- dently of any owner
Changes in Philippines Law, the Chamber have not paid their of the property... and that
In the course of his replies to subscription in spite of repeated the
Wuchow, April 27. amount of the loan does not ex- the U.S. Congress very recently out when, the question of printing der-in-chief of the 4th Group Army, Mr. Nigel, witness mentioned that reminders. This fact was brought General Li Chung Jen, dominan- ceed two equal third parts of tas and value of the property as stated in Passed the Hawes Cutting Bill and the names of members for the next Kwangsi Government, arrived here. the report, and that the loan was radical changes are to be made in year was discussed. The Annual to-day by the ss. Kingwo after made under the advice of the surfalands. At the same time the pro-and.it is necessary to include in the Canton. He was accompanied by the Government of the Philippine Meeting will take place next month having spent several months in veyor or valuer expressed in the mise of independence was contain report the names of members, but Madame Li, the Consuls for Ameri report."
Under no circumstances should ed in the Bill.
with so many outstanding, subscrip- en and Germany, and other dis trustees advance money on second marked, "neither the people of the steps should be taken. It was de-morning the party left for Nan- As far as I knew," witness re-tions, opinion was sought as to what tinguished persons. The following, mortgages.
In-valuing for trustees, the sur. Philippines nor the Philippines cided to send out final reminders. However, the difficulty veyor will be well advised to re-and consequently the Government of
Legislatura has accepted the Bill' of collecting arrears of rentals commend that the property here the Philippine Islands still func- valued periodically in case of any sins under the Act of Congress of depreciation taking place."
August 28, 1916.”
wharves
6. Vacant Land.
Chinese shops and houses are the most secure investment afforded by property on account of the very large demand, small outgoings and the fact that vacancies are at 'minimum.
owing to long delay in court proce- dure has introduced a detriment to this class of property which did not always exist.
Godowns, factories and wharves on the other hand are not so secure a form of investment.
FIRE AT CANTON GOOD WORK BY POLICE AND FIRE BRIGADE.
Mortgage for Debenture Imus,
Mr. Nigel: At the present po Although not invariably the casement, if the Philippine Islands against debenture issues is in the they be able to do it without re it is usual that the security offered made an extradition treaty would
A factory or wharf requires a title deeds covering the property so America 1
form of land and buildings. The forring it to the United States of and the complete destruction of the large expenditure to adapt it to hypothecated will probably be field the trade carried on and should this by trustees for the debenture hol-to fail, dificulty will probably be ex-dets. perienced in finding another Len
In valuing for a debenture issue,
7
ning to attend an important con- ference on provincial affairs.
Another aaroplani Kecident has occurred in Linchow, “A plane", flown by a Chinese pilot suddenly i caught fire in the air, And the ma chino crashed to the ground, killing the pilot instantly. It will be re- called that Mr. Ronald StevenE - DA the Far East Aviation Co, waa killed in a similar accident here a few weeks ago
A disastrous fire resulting in the death of Lang "Tu, a shop foki,
- Tui Yuna Hong Hert Bfore occurr- Witness:-Thoy would not be able od st Wai Fook Road West, Can- ton; on Wednesday afternoon. Pal The hearing was then adjourned, Yash Hong adjoins the Wo Hop An unpleasant, incident occurred ant. Although goodwill is really the surveyor may reasonably he
Butchers shop, also damaged by the in the Pun Yung. District, between na concern of the valuer's never influenced to some extent by the
Aro, and Bal Kai Fun, owner of Eweisien and Nanning, where à theless in the case of a factory or general financial strength of the fencement of the fire,
the former establishment, atates motor car with five passengers wharf, the degree of affiolency issuing company because the luterest.
that the outbreak wes" caused by knocked down and killed ́s child. That one woman and two children sparks from short-circuited electric The Magistrate of the district took der which the concern, in managed payable may very likely come from were rescued under great difficul-wires TAK SHARP
such a serious view of the accident must have an important bearing on ordinary trading and not necessari-tiss by two policeman prior to the This well-known herb store, now that he had the driver shot without the value of the property. It would ly from the rentals obtained from arrival of the fire brigade reflects demolished, was only lightly con putting him on trial. The Union be far safer to recommend a pan the property hypothecated with the credit on the entire police force, strusted, and this coupled with the to which the unfortunate driver against the property of swell trustees. In the case of an ordin A yery sad feature is that Lam Iu, intense beat made fire fighting, ex. belonged, is now petitioning to the managed factory or wharf than ary loan, it is quite usual for the the foci mentioned earlier who lost tremely difficult. Although the Government to have the said magis would be the case if the identical lender to be able to call up more his life, was ill and confined to his Canton Fire Brigade was carly on trate punished as they say there property were under the control margin should the security depre, room. His cries for help were not the scene nevertheless the three is no law under which a motor cer of an inefficient matagement. ciate in value and I fail to ser why heard and he was therefore burat story building was completely gut driver should be shot after knock Apartment houses are by no some such clausa should not be into death. His charred body was ted within an hour of the coming down a child, especially with means the best form of security for cluded in debenture agreements recovered by the police.
(Continued on previons column) out any trial:
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