Meeting held on
TAIPINGSHAN RESUMPTION ABBÍ:
TRATION BOARD.
The first moating of the Taipingshan Arbi. tration Board was held yesterday morning in the Supreme oart. His Honour Mr. E J. Aokroyd, Aoting Chief Justic, is Chair max of the Board and the other members are Mr. E. F. Aiford and Mr. W. Danby. The ecurt room was well attended by those in- terested and their solicitors.
The first case called was that of the Dominican Fathers; but counsel not being ready, it was adjourned until Saturday.
The claim of Mr. S. G. Bird was then takou np. Mr. V. f. Deacon appeared for the claimant and the Attorney-General (Hon. W. M. Good- man), assisted by the Hon. F. A. Cooper (Direc tor of Public Works) and Mr. A. B. Johnson (Crown Solicitor), appeared for the Government.
His Lordship said the Board were ready to proceed with the determination of these claims and that in so doing it would be their endeavour to take into consideration all the circumstances governing each case and try to reconcile as far as possible coaflicting interests and docide ca what was fair and right to all doucerned.
Before opening his case Mr. Deacod said that he understood that there was certain expert testimony and statistical matter filed by the Counsel for the Government and he wished to know if such would be op in to his inspection.
His Lordship thereupon ruled that such was baly prima facie evidenes and was open to any examination that might be desired.
Mr. Deason then asked whether the Court Had laid down any rule with regard to marte Fagens and other holders of equitable interesta In the properties.
After some discussion on this point the Board decided that it would not concern itself in any way with titles, that it would make its award to the owner of the property, and that it would remain for the Government to determine who such owner was, and in the ease of dispute arising te apply to sack court as would be proper to con- sidar that question, bat so far as the present Board was concerned they had only to look into and determine the value of the property and the amount of compensation to be given to each jowner.
The claim of Mr. Bird was then proceeded with. It was for lots 244, B & C., Taipingsbau.
Mr. Dacon, on account of the ruling of the Court relating to mortgagees and other claimants, modified his claim to that of owner and asked for $5,500, valds of the property, and $480. arrears of rent dine on same, making $6,000, plus 10 per cent. indemnity that he claimed for ap- propriation of the property. The total claim was thus $0.60. The Governm at had offered on the 10th December of this year $1,691, but this was declined. Mr. Descon then cited his principal anthority for his view of the proper method of determining the value of the property Bud the consequent compensation that shonld ba a{{owed It was a redent ease and was cited in the Law Times, New Series, No. 70. of Jane, 1894. pure 517 The principle therein laid down for determining compensation in this class of cas89 he gulfed to the espacial attention of the Board as having unusual weight, since the dies had been sustained in the House of Lords. He read at some length from the dase, wherein it was emphatically laid down that the rule governing such as is was to determine capitalization of the rental value. The question, then, was as to the beat method of determining this value and fixing the rate of capitalization. He said that while there might be different opinions as to the method of procedure iu such cases, he thought that the plau described in the case cited was unquestionably the best, and that, based on this course, and adapting it to this community and the special oircamstances governing the Tai- pingshan questio 1, a valuation of 15 years' par chase at the rate of 7 per seat. per annuel was fair and reasonable. And if this view was no- cepted all it would be necessary to do would be to determine the correct rental value of the property.
His Lordship hereupon interposed' and said that he did not think there would be any great difficulty in coming to a satisfactory understand. ing on that point when once a proper method
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had been agreed upon for determining the rental value.
Mr. Deacon then continued, saying that they chose 7 per cent. because that was the average re- turn ou money invested on mortgage and was a reasonable rate for investments in this class of pro- party. He next took up the nature of this pictl- onlar lease an showed that it was our of the old- est Crowit loases and that under the letter from the Elome anthorities of 3rd March, 1819, the owner would bare the rig it to couvert the same into a lease for 999 years, which practically made it as good as a freehold, since there were no re 29 strictive conditions attached to the present hold-
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ing except of the most inconsequential character. His Lordship admitted the right of conversion. Mr. Deacon next raised another point with regard to the law of compensation, by which he claimed an increase on the value of the property of at least 10 per cent. as indem sity for appro- priation of the property by the Government and Bited Lloyd on the Law of Compensation. 5th edition, page 68, and maintained that 10 por cont. for compulsory sale was a very reasonable claim. As to the value of the loase he said there might be diffrent opinions, but every one seemed to be pretty well agreed on the rate of interest, and that 7 per dont was a fair rate. He also cited instances in which the House of Lords had allowed as high as 50 per cent. for indemnity and bad given as much as 25 per cent, for country land, but said that the claimant did not wish to be unreasonable and asked only 10 per cent.
Mr. Bird was then called as a witness, and said that he was a land surveyor in Hongkong from 1878 to 1889 and that since then be bad been most of the time engaged in the real estate business. He said that the first time he saw the houses on lot 241 B & C was in 1892, when he went down to see about making a loan on them, that he looked at them from the outside and went in on the ground door, but did not go over the buildings any further, as he con- sidered himself sufficiently qualified to pass ou such property without a more minute exa- mination. He did make a loin of $3,500 at 8 per sent, and bad not soon the basidings since, until last Saturday, when he again visited them. When he made the loan the buildings were in good condition and made a presentable appear nace, but when he saw them the other day they Were in a bid condition, the wind and rain bav. ing blown through the open doors and windows that had been left open for ventilation, and there
tle thought by much damaged the building. the buildings were now about six years old. Ho did not know anything about the inside arranzo. ment of the buildings. nor whether there were mezzanine floors contrary to the provisions of the law, but thought that possibly there might be some modifications of the floors necessary ua- dr the new law. The ares of the house was 35 by 27 feet or 945 square feet. He entered iuto possession in November, 1892. and the re- turas from actual rontals received during 1892- 1893 were $532.50. The tyres of $63.40) were paid by him. The value of one room for one The year was $30, or $193 for all of them. taxes for the following year ware $13.80. The mean gros reutal of the buildings for the two years was $540.25. The first year it was $582 50, the next year $498, making an average of $34) 25 for the two years, from which should be dedacted the following items-Crown rout $3.96, fire insuranos 1 per cent. on a valuation of the building, exclusive of foundation, of $1,800, 813; allow noe for repairs and maintenance 2 par cent. on $1,800, $38; average taxes $5436; making all told $112.50, which, deducted from the gross rental of $540.25, leaves a not routal of $427 75, which, ospitalised at 7 per cent. a fifteen years' valuation, would give $6.110. He also said it was not his protine to allow for vacant fors or for other da pesoiation than that provide for in the two percant, which be considered ample for property in Chinese tenements. He thought the vlua- tion of $3.90 per square foor for the land very low. When cross-examined by the Attorney-General. he said made my own value on the property when I advaned $5,500. I did not say that I had been paid anything on the pricipal, only on Rocount of interest. The capitalisation of the rental on the basis of 14 27 years at 7 per cant. would yield about $5,000. The houses were
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