Friday,
HONGKONG TELEGRAPH
Ubrary
September 5, 1941.
FULL PROBE
FROM PAGE ONE
placing of contracts by the
REPORT OF THIS
A.R.F.
and the PW.D. and we have to mak # comprehensive report of our find ings regarding whether Governmen has been overcharged for work done
INTO
as possible. No other firm in the Colony was in a position to carry on.
A.R.P.
Hongkong Mines?
MORNING'S DEPARTMENT
Assuming that water is dripping] What happened to the timber re-j
and whether the work done has beea,ull full, that they are in a sufficiently Will you ascertain and Iot us Street by the Dairy Farin? Ilus
up lo standard.
M
Mr Davidson: 1 still don't see relevance of
person going Shunghat and the amount he pald,
The Chairman: You will later.
1
Yes, if you like That was arrang-through rock, It will be necessary to placed-It On these 21 sites, at the momented between ourselves and the PW.D. gunite the rock and that has not yet purposes. WILE used for other none of which you say have been Which gentleman in the P.W.D.7been done. Are the railway track completed, what in your estimation belleve Mr Campbell and Mranes pulled out? Some are. We tamnged?--It was cut up into small What happened to the timber. s the total number of people they Pearce.
were held up by military considera-blocks and used as lining an nhelter?-10,000 feet would ac-
flow was the arrangement made? tions, but they Anally agreed to let commodate approximately 200,000. In correspondence or vebally? I sorough.
correct in spying that timber condemned was sold as fire- De you consider that if they were cannot remember.
You know the site ut Wyndham wood by the Pubile Works Depart-
ment? Not to, my knowledge. Jihnt been completed?—No, Kin
You know when that started? Lee Hiring With regard to Kin Lee, how were months ago.
That tunnel system was elurted some After starting on the of hiring made? That Would you mention those that are happened to be just another quen- {gentral system it was decided that other portals would be compressor. We roug
opened and that is the reason why for the
thr to
Wat..
advariced plage to house these 200,-know?—Yes, 000 people for 24 hours?-Many of them are.
Must Reserve Answer
the terms
in a position to house the occupantstion of getting a
answer. Some may not.
Where did you buy the timber7- I can give you the information.
The Chairman then asked Bir for 24 hultra? have to reserve my were looking all over opgkong and Lome of the portals are now being inilway sleepers. The size of
Carinan: You reduced the antary 5160. on instructions from ment through Mr Campbell?—Yes.
eventually Then he was
$3,350
to
rm?-Yes.
opened,
the ports In the East Why? The ventilation shafts may equipment and it so happened Kin Govern-
"Tunnels Committee” not have been completed in all. Lee had a
Just how t spare one You know how many of these sites came to the job I don't know. given
When you say it was deelded, who "your nave ventilation shafts?-I am afraid don't know who compensation by
decided that? It was during one of arranged It. i can't.
pre- the conferences held every Tuesday sume it was arranged between our-between the Public Works Depart Can you find that out? Yes. Some selves and Mr Campbell. may not have ventilation shafts, de- sending on the sites and elevation of be entrance,
Was ten per cent. charged that? No.
Was ten per cent.
on
charged on his salary while he was in hospital?
Yes,
15
Joly
And also the price you paid for 17.
Do you know off-hand if you bought allway sleepers?—Yes.
Many?--Originally, we intended to the tunnels were. designed for sleepers but after placing orders with Jardine's, we found they were Fuch a shape that we were unable. to use them for certain parts of the Who fixed the rent?-I cannot say. Precautions.
ment and the Director of Air Raid
Later
these were cut up. Were you ever approached by any- Did your firm flx 11?---No,
body Is that known as the Tunnels Com-
to purchase Therefore it must have beca
railway
sleepers? Mr Campbell?-It must have
jmittee?--I did not know they had Several people approached me. We been arouch a name. Those who attended ranged by Mr Campbell
2,000 from and Mrwer
were Mr Pearce, Wing-Comdr Steric- National Development Company. Perkins, Mr Bishop, Mr Campbell
Allowed To Sub-Contract and Mr Librov
fferent to ask you ote thing in week since the tunnel system started? you ever told by the Pubil Works
They have been
connection with the contract. Were
Yes.
Department that veu were af alberty You take your orders from them?-to sub-contract this work?--I have sub-contracted the work in agree- ment with the P.WD.
Have you sub-let much work?-Very little.
of this Who
instructed Since I received most of my instruc- you to do this........... tions from them, I presumed it was Mesra Campbell and Curtis,
Arst purchased it correct that Deacons acted
Do you know how many have ven- lation vents worked by machinery? -1 emot give the exact number.
Cut you find out?—Yes.
Pearce and Kin Lee, Have you commenced any new that you hired?--That was arranged Who fixed the rent for the plant Co-tunnels within the last two months?-in converstition between members of
I believe sont Aberdeen,
for this man?—Yes.
Did they ever deal with the Gov- ernment? Not to my knowledge.
All the negotiations were ducted direct with your Arm?-Yes, that's right, through Hastings" and Co.
per
costs
cent.
This is other than the 21 sites you nive mentioned?—Yes.
A
discussing
my staff.
So Marsman's Axed the rent?-Yea, Without consulting the P.W.D. We consult the P.W.D. on every item of expenditure.
Purchase Of Plant Agreement. On Còste You also said at the last hearing
the Just hearing we were
|us that in the muin all the
question of plant In that case, Meranian's fixed the which included everything apprital which you had purchased for rent with Mr Campbell
job. I think you promised. If my Pearec? That's right. int to the job plus ten was aereed trgun, that in fact it did nemory serves me right, to find out not represent a nett ten per cent, more detatis about this plant. Have for Mr Penter (then Acting Director - have here a summary of the of Publie Werka) insisted upon no plant and equipment purchased by
office overhead be included. anus on behalf of Government.
What is the total value of
executive sotaries be included and only aged on a portion of the sala
iner on the job.
correct?--Yes.
Insurance Responsibility
Is that 3pment?-$260,251.47 us of July¡responsible for
in
Yes.
meeting
every
рег
the
The Wyndham Street shaft goes very far down?-I forget the extent of it, but I know It is very deep. it and Air Cocs down some 30 feet.
It is still in an early stage?--The connecting tunnels were started only In short time ago. To come back to this arrangement
Various technical between you and the Puble work freasuns held it up. Department for making the tunnels.
Used
Is there anything in writing per- Timber
mitting you to sub-let the contract It is mentioned in the letter from Mr did you use timber or concrete for ment?-The contract was on a
When the work was first started, you have undertaken from Govern- the Pearce that
your Arm would be
Cost the insurance for beams?-Timber entirely.
plus ten cent. basis and every- In October, 1940, roughly a month that correct? Not that we
which Government would
Do you know the amount of timber thing has to be approved by Govern pay. IM 15 were bought by you?-I cannot give it off-ment. 1 after you exchanged these letters
were
I don't think there is more I then asked you was that the con- |
responsible, but you were fulfilling, and you re-with the P.W.D. you purchased $43-secure policies similar to those
to hand, we would try 10
Take It Marsman bought the time than two tract
or three, possibly four, 709.13 worth of plant, in November
sub-contractors on the job. They plied all the costs plus ten per cent, Į
ber? It was approved by Govern-were brought in for tunnel relining. and you have He contract in weit-you purchased $18.724.68, in Decem-force in the Needle Hill Mine.
ber $39,067.92, In January, 1941, $25.-several insurance firmus but no British Corman announced that
Did you succeed?-We approached
{ment.
But is there anything in writing The contract was sent to hir Barnett. 073.86, in February $10,406.26, in company would take out the policies. 478,045.67 had been
you got that contract?-
After looking up some files. Mr from the P.W.D. to your firm per- in contract was sent to you refer March $52,223.50, in April $25,005.07, Finally, we obtained a policy from timber for tunnels. Included ill the
total amtting you to sub-let these contracts? expended on have to supply you with that in- to as a contract is really a letter and in July 819,224.50, making a
tra May $31,402.01, in June $0,948.52, the Asis Life. It is an exchange of letters between
When was that?-Shortly after the total was expenditure for Baller Brand total of $200.254.47. Have and Mr Pearce.
Don't Know What is company
purchased anything in August?
Job started. The Chairman then instructed Mr men
In which all your workmen were owing to seepage of water, timber Subsequently, it was found that Burnett, the Secretmy, to read out Yes. the letters exchanged, one of which How much?—I cannot give you the insured? Yes.
Including Mr Olsen?-Mi
was not the right stuff to use and
Who is doing the ventilation to the was in the nature of a memorandumdures.
concrete was used?—This is not funnels?—I am afraid I cannot ans- was insured under a Will you get them for us?-1 will.which stipulated that payment would ing but timber. Then Government happening.
new policy currect. They originally used noth wet that. I don't know just what is Was 10 per cent. charged on these be made if an accident occurred, re-decided to use
Originally We dild purchases?--Yes..
reinforced concrete nothing with the ventilation. Somo And who do you consider the plant sulting in death or loss of a limb or beams
an eye within three months after the
months ago, I learned from outsiders belongs to?-Government.
that a contract had been let for we did hot accident. Therefore
ventilation. from compensation
the receive Insurance Company.
The actual total of the amount of plant hired to Government comes to $249,0007-Yes,
With Plant
plu
regarding arrangements previously agreed upon concerning the construc-
on af al rall funnels.
Inquiry prnereding.
49,000 Feet of Tunnelling
The Chairman-Exactly
many tunnels have your Arm
structed up to date?
So they paid 10 per cent. on their how town property. Who supplied the con-money to purchase these?-We
purchased for Government.
Mr Carimun.--It is impossible for me to state the exact
mauber 09
Paid On Own Property So they pald 10 per cent, on their there are so many sub-tunnets. own property?Under the terms of can give you the amount in footage. On July 31, it was 49,180.43 feet,
You are familiar with all this work-in a general way..
I have. n many occasions.
the contract, yes.
You also promised to let us have details of the plant and equipment that your firm itself owns on the job.
Supplied
Olsen
Would it be correct to say that un- less you had the plant on the job you would not be in a position to do the Job?—Yes.
So you had la fact been supplied job for which they paid ten percent?
with plant by Government to do the
You have vislied these tunnels? Have you got them?--Yes.
Witness then produced a list of Call them hide-outs if you like.engineering equipment belonging toYes, according to our contract we not tunnels.
n:ls. How many are there Maraman's In
service, on the in Hongkong to which the publiunnel job. According to the list, as were to receive ten percent. of the could go?--There are approximate-rend at by the Chairman, the Com cost of the job.
Dany
items.
Timber Replaced Any timber replaced by reinforced
concrete?--YC
Much or little? I cannot give the actual amount but I was very small
formation.
Happening.
By who, do you know?-I do not know, and at that time I could not TURN to Back Page, Column 5
P. W. D. & MARSMANS EXCHANGE LETTERS
>> FROM PAGE ONE
You would also be supplied free under the best condition would entail
Government with plant to do considerable expense.
In
thin
y 21 sites in which there are numer! any had $8.000 worth of surveying | by work?-Which is ordinarily the Bard It was decided that we would me
couk
ous portals, so that the tutal na equipment, $1,500 worth of drafting ber of Portals which people enter may number 200,
There are 21 different sites which under-round tunnels are made
are
inat varkus ich were used
to
tie
15, Marsman's said: "While we ap- preciate the views expressed by you, at the same time we feel that you: do not realise the fact that our costs on this job are considerably more than the petual disbursement state- ments that we rendered to you. equipment as well as plant and other
with
call for tenders for haulage contracts
Under the circumstances, wo most contracts.
the ofter equipment in their various
units chse
following for your consideration: that Let me put it this way. You have to you for your consideration,
the present arrangement of cost plus such as Needle I Mine, Concrete
in fact nd the machine shop with Products
been
No Major Difficulties supplied by Government Lud and What about Kowloon?-1 have
do plant to
the job on the "Apart from these considerations ten per cent. be continued subject to a full calendar month's notice of at Hung Hom nothing to do with Kowloon.
tunnels? No, in
in fact we secured we informed_you_that_.we saw no termination.- How many of these 31 sites
plant for Government for
which major diffeulties In carrying out the entirely
The Chairman: What is the plant completed? The tunnels
"In suggesting the continuation of could have been used in the cunt in these units? We hired it at varley paid and for which we got ten work required and arrangements are
per cent. to which we are entitled in hand to start work immediately this arrangement, we must point out an emergency practically at once but ous time to carry out tests.
and to continue with all possible that we have not been making ten duc to medical requirements ani The costs of these were paid for by under the contract.
You have been given plant by speed,
per cent, on cost or as suggested in Gavernment regulations ont sanitary Government? No, we carried that Government to do this job?--We live
"It was decided that the tunnet Paragraph 5 DI your Jetter- of equirement and ventilation problems out as an engineering part of the job. rertain facilities Government nus entrances would be approximately September 18, we have not
Maraman's Equipment
charged ten feet by ten feet sections to taper to Job any once or executive Apart from your plant and equip. Have you got the right type of to an eight feet by eight feet tunnel, overseas. In fuct we are not receiv Not Entirely Completed
ean all tunnel entrances to be finished inng the full saiary of any of our ment at these three places, the total equipment?-As much There is not a single tunnel en value of your plant on the job is secure.
concrete blocka other suitable men, many of whom are devoting tirely completed?—Nol une tunnel is $9,5007-Yes, with the exception of
material. In view of the large stock full time to the work. Taking Into of railroad ties in the Colony, it was consideration the executive OVCT- decided that an eight by eight tunnel head would be most economical."
and full salaries together with promised bonuses which have helped Paints Confirmed
greally to uccelerate the The D.P.W. in a letter in reply to than about 6 per cent. on the cost
we shall not work, wo
make more this confirmed that $450,000 had been which as you, we feel
we are working on all the tunnels at this time.
entirely expleted in conformity those which are hired. with the regulations of Government.
But your own pant and equipment What do you mean then by your is worth $9,500?--I don't understand correspondence these
that
finnels should be completed at the earl est you because there is also equipment possible moment?—At the outset this Job was a question of speed. A year
und
hired to Government by us.
not.
BS WC
Not Paid For Have you paid for it?-No,
Do you pay for the hire of any thing? We receive hire.
Do you ray for hire on anything you do?Everything comes through
plant worth $9,500 but in addition it ourselves.
Your answer is that Murgman has our company, but we do not pay for a half before we, look the Job hired on we approached Government and ment?--Yes. were requested to submolt estimates What is the enpital value of your which we did, pointing out that be- fore anyone could take on the job. Plant which you hired to Govern- they would have to engineer it from meni?-525,650: At
times
It
Sovernment?—Yes.
or
the
aure, wil
et aside for the experimentul stage appreciate, is much below the usual
as
the
other factors. When we were call had? will have to supply that cent, on the cost of hire?-We havn large on the fo. «ractical side of of all new plant made by the Gov-
of their own to Govern- Morsman's do not pay for that of the work, that the work was to profit on cost plus contracts of this
because you recover frembe carried out on a basis of cost nature.
plus ten per cent, and that all labour "In order to meet you as far as The net result is that Government costs and salaries of Marsman's possible, we agree to the suggestion had, en use the plant at different jobs? staff directly employed in the work as set forth in Paragraph 4 of your | bein h gher than that.
-Yes,
would be considered
a direct letter of the 14th time. on the stand-point of the foundations,
What was the highest that you ever! the lay-out,
On top of that you ret ten pe ventilation and many
following terms: That the purchase Referring to the ed in on the job, we were asked to
figure.
no other men of getting any re- the undertaking it was noted that ernment direct shall not be consi start immediately, and Lieut-Gen, "What was the monthly rental pald turn.
Mursman's had plant for five of the dered as cost to the job unless E. F. Norton, the then Acting to you by Government, in respect of Out of couipment you could not sites chosen and the letter observed purchased by us and then each Governor, personally visited the siten this plant?-in July last the rental At cast plus len per cent, natural-that the absence of plant at that individual purchase to be considered and requested that we speed opera- was $800, In June $600, in May $750, ly.
stage must not exclude the employ- as an Individual transaction on terms tions as fast as possible. Everyonen April $900, in March suno, in When Maler Beckerleg came from ment of hand labour at all other faces mutually agreed upon. thought at that time that we might Tebruary $050, in January $600, in Manila by air, did your firm pay his where such could be employed. It have an Invasion.
December, 1040, $400, in November,
arreed that the tunnel entrances Has that been charged to Govern were to be 10 by 10 and to taper to
"In nent?--It has not.
regard 8 by 1
suggested You know the group of tunnels at On February 14, 1941, the D.P.W. Brrangement we feel that it is only
fair to us that Belcher?-Yes;
addressed a letter to Marsman's in
we should remind you that a great amount of work Can you tell us when you started which it was stated that as the ini- has been put in to do that job?-I have to supply tial stage of the A.R.P. work had Department, who by our Trading 'hat Intermation. I crnnot remem- since long passed and In
In view
have of the
sold all ber off-hand. It commenced several programme
to be undertaken,
equipment and suonlier at cost to the months ago.
the D.P.W. was of the opinion in the Government, thereby foregoing their interest of Government economy that from 20-30 per cent, on many items. usual trad ng profits which range the existing arrangement should be In addition to this, we would point
In the space of 12 months you $400, in October $450 and In Septein- have been working on the tunnels, ber $350. These figures are p- and yet not one is completed? We proximate. worked as fast as possible. We were ordered
to make possible the pro- tection of the population in the event of trouble,
No Sanitary Arrangements Have they all got sanitary arrange- ments installed? They have not, to my knowledge.
Charge On Rentals
.
on
Was 10 per cent, ever charged these rentals? Yes, because fey were part of the cost of the job.
So the position again is that Government are hiring plant and paying 10 per cent. of the cost of
passage?-Yes.
Driving Completed
concerned Witn เท
+89
Profit Waived
to this
Have they, nil got seating accom-hire to you?-Ta the advantage leted so far us no uriving is con- Marsman's might be prepared to se-four Manila firm have been made at Is it completed yet? It is com-reviewed and it was suggested that out that all purchases made through modation for the public? They have Government..
That was what we were cept a reduced "percentage on costs" cost and that we shall have to pay not, but
Does that also apply to the plant cerned." I understand some hive. Would it not be correct to say that hired from Kin Lce by you? Yes, actually
trate on future work as from March them a handling fee of five per You hired an air compressor from mal contruct. Other problems, (3) 1041. though speed was the prime factor
cent." in the contract, the longer it takes Kin Lee which you say is valued at such as ventilation, the Government
Considerable Commitments the more money your firm makea? $0,000. What monthly hire did you ecided to carry on.
The D.P.W. replied to this letter in Mr Davidson. Is that a suggestien pay?-1 bolleve $250 for a full month. But you are in fact performing The letter went on: "You will of the following terms on April 7, 1941:
that: Yes. that the contract has been deliberate That is not now on the job.
couro appreciate that it is impossible. "In reply to your letter of Merch ly delayed? I cannot see the re- Whatever you paid to Kin Lee for It has not yet been completed?- to put any definite form as to the 15, I have to advise you that I levancy of the question.
hire you
also got 10 per cent? Yes. No.. for what reason I don't know.
time or the amount which may be the existing working agreemtal be- be authorised by Government to extend Objection Over-Ruled Does that apply also to the Hong-
in these operations, but our The Chairman I am making no kong Mines Ltd for rent ng the drills pleted? As an ordinary cat.zen would
considerable. tween your company and Govern- suggestion. In the opinion of the and grinders, etc., the capital value you say that these tunnels are in fact
With regard to Commission this question is mtst of which was 800,0007-Yes.
able to house people lor 24 hours What was the approximate rentalshoy can be used. The
Rood.
Do you know when it wul be com= |expencats are vez mortisatión ment on the present terms of cost
of plant, it is agreed that Government plus, ten per cont. subject to a full relevant to the terms of the Inquiry for that?-Between $3,000 and $4,000 | in tant area is particular ventiation shall acquire the existing plant notion and subject further to the follow calendar month's notice of termina hired being upon amortisation basis ing condition: That the purchase of On which you also got 10 per cent? hours? ́. There is no sanitation therez loutstandent of. $29,347, being the fall new plant made by Government i
Your oblection is over-ruled.
The Galeman-Have you any Amth. idea, Mr Carman, when the whole
Would they be able to stay 24 by the
---I think rol
balance of the amortisa- Job cl building tunnels will be-Yes,
My company
direct shall not be considered, as a has tion account. All new plant acquired art-hed? have no more-idea than So, according to this type of con-urranged for sanitary accommodatus in the future to be purchased by cost subject to plus 10 per cent, but that all purchases of plant niada did at the start. Two weeks piter tract, it would not be incorrect to to be installed.
Government except, where circumstupen you on behalf of Government the Job commenced. Lieut-Gen. say that the more the costs of the There is some kind of ventilation? ances dictate that other arrangements shall be to subject, each such pur
that if we could not hire the more your firm makes? The natural ventiation is suficient, would be mutually more satisfactory chase made by you shall be const- Norton Indicated
but it may be necessary to drive a It is not possible, to precisely indicate dered as an individtial transaction on few ventilating shafts for dead-ends, these?
There is lot of seepage there There is, If
l'it is
speed up the work, it would have to Yes.
be stopped. N
He said that? Yes.. He
WAJ
10:
Arranged With P.W.D.
le...anxious for us to open as many altes hire? are you referring now to the
Viep/77bn terms mutually agreed upon, MA
of gunnited ASSY VISAS Cottamón March Etlonne und from April 2,4394122
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