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Again, it is very undesirable that practically the only building material produced in the Colony should be in any way restricted as it undoubtedly is under the present system, causing even our own important public works to suffer.

As an instance, I may mention that, when the present Quarry Farmer, Mr. Tsang Kong, was urged to proceed with the metalling of the roads on the new Praya, regarding the disgraceful condition of which a question recently arose, he stated that he was unable to procure stone at a reasonable rate because his rival, Mr. Chan A Tong, the then Quarry Farmer, was putting up the price against him.*

When any monopoly is granted, a maximum rate is generally specified, just as in the Tramway Bill now under consideration, maximum fares are specified in order to protect the public from exorbitant charges. Under the Quarry Farm, no limit is specified and the Farmer can make the tax what he pleases.

I am therefore of opinion that the system of farming should be abolished and that the Government should undertake to collect the revenue derivable from quarrying stone. Rates would require to be fixed for the various descriptions of stone - broken stone, rubble or ashlar blocks. A staff would be required to measure the stone and collect the royalties on it.

As practically all the stone quarried is taken away by boat or junk, it would be possible for the Water Police to keep a check on it and see that a boat did not escape without payment. With a little practice, an Officer would soon be able to check approximately the quantity a junk contained and see that no abuse was taking place at the quarries.

I think it would be desirable, in the case of any one applying for leave to open a new quarry, to require a payment or deposit of, say $500 or $1,000 by way of guarantee that the quarry would be genuinely worked.

The system of royalties upon the stone sent out from the quarries appears to me to be the most satisfactory one that can be adopted.

(Sd) Chatham.

24.7.01.

I enclose a copy of the existing Quarry Farm Agreement.

(Initd.)*_G.:

24.7.01.

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