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however been found impossible in practice to enforce these requirements, and it has long been the custom for Companies doing business in the China Treaty Ports, Japan and elsewhere to record transfers of shares in registers kept at their place of business. No stamp duty is paid in respect of transfers so recorded, and it is estimated that the Treasury loses thereby a sum of at least $10,000 per annum in respect of share transactions in Shanghai alone.
4.
The present Ordinance was drafted in consultation with the local and the Shanghai Chambers of Commerce and other interested parties, and the compromise which it effects is, I think, a reasonable one. The Companies registered locally which operate mainly or exclusively outside Hongkong have a paid up capital of some $100,000,000, the annual fees on which, if all were to take out local registers, would amount to $40,000. It is not of course possible to foresee at present the extent to which these Companies will avail themselves of the facilities afforded under the new Ordinance, but in any event an adequate return for service rendered will now be assured to this Colony.
I have the honour to be,
My Lord,
Your Lordship's most obedient,
humble servant,
Thugaros
Governor,&c.