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11. In these circumstances and as a test case a statement of claim was filed on the 5th December 1919 by the Shipowners Protection Association through the owners of the Steamship "Wollowra " for the recovery of $596,672.31 the profit retained by the Government in respect of the use of that ship.
12. On the 19th day of January 1920 the then Honourable the Colonial Secretary, being aware that this was not an isolated claim but a test claim brought by one only of your Petitioners to test the legality or otherwise of the action of the Government of Hongkong, made the following statement in the Legislative Council (1920 Hansard p. 8) :-
With regard to the European Community, I will deal first with the proposal I laid down before the Council for building a hotel and
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"Hats in Kowloon. We had money for the work, or thought we had, and things had reached the stage of architects being on the point of making preliminary plans, when the owners of vessels requisitioned under the local scheme bethought themselves that there was no reason why the profits made under this scheme should be devoted to 'improvements beneficial to the Colony, such as providing hotel and housing accommodation and also extending facilities for education among the various classes of the community. They saw no reason why the money should be devoted to those purposes, but thought "that the money should come back into their own pockets. I must leave the community of this Colony to judge which is the better way of disposing of profits, which may be considered war profits, "and which would have gone at home into the Imperial Exchequer.
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The Government in view of the action taken, which may in time come before the Courts, do not feel in a position to spend any * of those pepfits on the proposals until the Courts have finally dealt with the matter. Therefore the Culony has been deprived of what it urgently needs-hotel accommodation and money which might have been advanced for the purpose of building houses "when the scheme of building flats was given up. The University also has been deprived of a quarter of a million of dollars and education generally of a sum of five lakhs of dollars".
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13. Subsequently on the 25th August 1920 the Government consented to the case being postponed until the return of the then Acting Colonial Secretary— Mr. Fletcher-to the Colony. On the 6th June 1921 the Crown Solicitor by letter to your Petitioners' Solicitors stated that the condition of postponement until Mr. Fletcher's return was then still insisted on by the Government.
14. Your Petitioners learn that it is the intention of the Government to introduce a Bill into the Legislative Council to prevent the recovery of the said moneys by your Petitioners. Separate actions have now been commenced in the Supreme Court of Hongkong on behalf of all ships concerned.
15. Your Petitioners are aware that it is not unusual after wars for Acts to be passed protecting persons who have acted in good faith and in the supposed execution of their duties from pains, penalties and punishment for actions not warranted by the law, but your Petitioners point out that your Petitioners' claims have never been for damages but are merely for the return of moneys standing to the credit of the Shipping Control Account which were not required for the purposes of the war and which were obtained by the use of their ships. They desire respectfully to point out that the effect of the Bill if passed would
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be to authorise the seizure in the year 1922 at a time when shipping is depressed and freights are low of the moneys of British Companies who are competing with alicn companies which were enabled to build up Reserves during the war, through not being financially controlled. Your Petitioners state that not only is' shipping now depressed and freights low but that it is practically impossible to operate their ships at a profit. The Steamships Castlefield" and "Manapouri" have already been laid up and unless some financial assistance is forthcoming many more will have to be laid up.
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16. The result of the control caused a substantial financial loss in the case of several of the controlled ships and the officially audited accounts showing this loss have been submitted to the Hongkong Government and are as follows:-
S.S.Manapouri”
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S.S. Castlefield ** S.S.Brisbane" S.S."Pheumpenh" S.S. "Telemachus
$42,359.67.
19,134.44.
89,017.54.
10,488.55.
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S.S. "Haiman ”
36,319.02. 13,667.38.
17. Your Petitioners desire also to point out that the needs of the Govern- ment for housing and education should be met by the community at large and not by what amounts to a special levy on certain small shipowning Companies a large proportion of whose shareholders are resident else where than in the Colony. It appears to your Petitioners that the Government of Hongkong are attempt- ing to tax a small branch of the community of this Colony for social improve- ments by indirect legislation, many of the contributors being entirely unconnected with the Colony of Hongkong.
18. Your Petitioners desire to point out that the only commercial and industrial interests in this Colony which were put under Government Control and whose profits were impounded by the Government during the war were the shipping interests; whilst all other commercial and industrial interests includ- ing Docks and Marine Insurance Companies both of which made large profits from shipping operated under Blue Book rates were permitted to take and retain their profits.
19. Your Petitioners desire to protest against the compensation tendered by the proposed Ordinance stating that the same is wholly inadequate.
20. Your Petitioners desire to further point out that negotiations havo for some time past been proceeding with the Government of Hongkong and a tentative proposul was made to your Petitioners which met with Your Petitioners' approval but notwithstanding such approval the Government have after con- sulting the Unofficial Members of the Councils withdrawn their proposal.
21. Your Petitioners therefore urge that the Bill be so modified as to save the rights of all your Petitioners to prosecute their claims unimpaired in the Courts or in the alternative to distribute the aforesaid sum of $2,231,204.11 rateably amongst your Petitioners. For in its present form the Bill is in the opinion of your Petitioners unwarranted, unjust, inequitable and unfair and represents an attempt to tax ships not registered in this Colony.
AND
your
Petitioners will ever pray etc.
Dated this Third day of August 1922,
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