ment might cut the other way if a man were to say "Without the piar the godown is of no nse to me, therefore I give it up and the Government will lose £130 they got out of me." Seeing that your Excellency's remarks have not been in favour of my motion, perhaps it would not be of any use to put it, as it would only take up the time of the Council.
His EXCELLENCY-I think hon. members onght to give us some credit for having roducod existing taxes one half.
Hon. P. RYBIE-Piers have not always beom taxed.
The COLONIAL TREASURER-I think I was quite clear on that point.
The matter then dropped.
The COLONIAL TREASURER-Before we go further, I have a very important change to sug- gest in the shape of a new Soction between 29 and 30 to this effect:-"The rates provided for in Sections 28 and 29 may from time to time da altered by resolution of the Legislative Council. but no motion to alter the amount of sneb rates shall be made without the previous sanction of the Governor. If such motion shall be carried the Governor shall fix a day for its coming into effect." I may say the rating here was for many years in the bauds of the Executive ConnciÏ, and the rates were altered from year to year. I am sorry to say they were gonorally raised. They were ouca lowered, Ithink, but immediate. ly raised again. Your Excellency's predecessor attached great importance to putting the matter in the hands of the Legislative Council. It was put in the hands of the Legislative Council, but The result was unfortunate, because when it was in the hands of the Executive it did receive at- tention once a year, whereas now it receives no attention at all. Also a new Ordinance was no- cossary to give effect to any alteration. Tho section I now propose is to provide for altera- tions being made without the cumbrous ma- chinery of a new Ordinance every time.
His EXCELLENCY said that the section bað been introduced at his suggestion.
The section was then passed with the omissiou of the words but no motion to alter the amount of such rates shall be made without the previous sanction of the Governor." His Excellency, after conferring with the Acting Chief Justice, suid he thought this part of the section unnecessary. Hon. A P. MACEWEN-Referring to Sec. tion 29, said-I would like to ask on what basis you would value a pier? For iustauce, if you take the piers at Kowloon of the Wharf and Godown Company, would you charge the seven per cent, on what they get for berthing steamers alongside, or on the actual cost of the pier ?
The COLONIAL TREASURER-The annual value of a pier depends on a hypothetical tenement. If there is not a tenement you must suppose one, and ask yourself this question Supposing circumstances were such that it was necessary to let this out and someone was willing to pay rent for it, what amount weakl he pay? The question is sometimes a very dif- ficult one; where there is a rent passing that generally decides it, but not always, and iù rela- tion to railways, collieries, and so on the question is a very difficult one and one that has given rise to more litigation than anything else in connec- tion with rating. The first cost is very little criterion because it may have been thrown away in an injudicions undertaking. The question is what letting it from year to year would give, and that is expressed in the second definition : "Annual Valne.The rout at which any tene- ment might reasonably be expected to let, at the limo of the valuation, from year to year, if the tonant undertook to pay all usual tenant's rates and taxes; and if the landlord undertook to pay the Crown Rent and the costs of repairs and in- (surance, with any other expenses necessary to maintain the tenement in a state to command that rent." That is the only possible answer to the question.
His EXCELLENCY-Is the hon. momber satis- fied ?
Hon. A. P. MACEWEN-Well, it does not ap. i pear to me very clear. I am roferring to piers in this colony.
His EXCELLENCY-It is a subject which does not admit of being very clear. There have been disputes about it everywhere where rating ex- foods. Thongh the principle is clear enough, the application is difficult.
The COLONIAL TREASURER—The bon. gentle- man might as well ask me to tell him in three words what general average is.
The ACTING CHIEF JUSTICE-I should like [to ask, while on the subject, on what basis ma-
chinery is to be rated, whether on the cost of it or otherwise, because it is no difficult to got a valuation of machinery, the machinery of a sugar refinery, for instance.
The COLONIAL TREASUREE-That again is anost difficult question. You mest first decide what machinery is to be rated, discriminating between fixtures and workmen's tools, which are never rated, and then ask what would a tenant give for the whole going concern, supposing he finds the movable tools, but was provided with the fixed machinery, boilers, &c. The capital value of the machinery has, of course, some thing to do with it, but it does not necessarily al- ways decide it. That is the only practicable test; you must somehow arrive at the sum which & tenant would find himself justified in giving for the concern You may take the gross earnings, making a reduction for the tenant's profit, wear and tear, insurance, and other considerations, and this would leave the net rateable raine. I don't know that I can make it any clearer than that.
His EXCELLENCY This has been talked about! ever since rates have existed, but the principle has come to be pretty well recognised now.
The ATTORNEY-GENERAL-Every item of property taxable has been discussed and decided upon in appeals in the courts at howe.
Section 30, providing that the Governor in |Council might from time to time direct that lower rates should be charged in districts newly opened for building, was struck out, being con- sidered unnecessary after the new section in- serted after 29.
In Section 38, Hon. J. BELL-IRVING proposed to add to the list of exemptions places of recrea- tion. He said-Hitherto the premises of the Race Club and the Recreation Club have not been taxed, but in view of the attempt made to tax these places last year, I think they ought ́o be specially exempted, as they are not mada use of for purposes of gain.
Hon. P. CHATER-I have much pleasure in seconding the amendment.
The COLONIAL TREABURER-After careful consideration, I am obliged to oppose this amend- meat. In the first place, I may say places of recreation in this Colony are not by any means free institutions, open to all. They are all pro- tected by subscriptions, ballots, and machinery of that kind, and it hardly requires a moment's consideration to see that they are all supported by the wealthier part of the community. I hold in my hand a printed return of the exemp- tions from rates in England and Wales. Univer sities are not exempt, almshouses are not exempt, nor buildings or lands occupied by municipal or other bodies, when profit is made from such lands or buildings other than of a national cha- ractor. The latest case bears vary strongly on the point here. A race course in Australia, had been assessed at £2,500. The trustees appealed. The land was used as a race course ander demiss from the Crown for 999 years at a peppercorn rent. The Judicial Committee of the Privy Coun cil, reversing the decision of the Court below, held that the land was not exempt. But to come nearer home, I should imagine there is perhaps not a place in the world where the interests of re- creatiou are looked after more thoroughly than they are at Shanghai. 1 find at Shang- hai all those places of recreation are rated when they are within the limits of the set- tlement. The hon. member read an extract from a letter from the Shanghai Municipal Council iu 1886, saying that with the exooption of the Chinese Polytechnic Institution and churches, chapels, and hospitals, all buildings in the settlement were ratenble; and refusing to exempt a school on the ground that if one school were exempted all the others would claim the same privilege.--- The Municipal Council of Shanghai had But srrived at an exactly correct defiuitium. there is something more thau that, there is an institution known as the Country Club, es- sentially for recreation, and I find that this in- stitation pays volunt rile, hoing outside the limits of the settlement, a contribution of $60 annnally towards the policing of the road on which it is situated. In other words, I suppose this Club, finding it more convenient to have the road policed, and seeing that it would not other- wise be policed, being outside the limits of the settlement, voluntarily chooses to pay this sum for the policing of that road. Surely, it would not be said our institutions in Hongkong câu get their police for nothing, but elsewhere the institutions must pay for it beenss they cannot get it for nothing. I don't think it can be said that these resorts of the
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