CO129-285 - Acting Governor Major Gen Black - 1898 [9-10] — Page 357

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ed thereon would not last seventy five years. The same remark

applies to land sold for the erection of villa residences

though in a lesser degree. What will we think suffer most will

be sales of land for industries and valuable buildings such

as the Banks & Clubs & the larger Mercantile Houses & Shops.

There is another point to be considered. Trust funds are not

allowed to be invested on mortgage upon lease-hold properties

with less than sixty years to run. It is easy to conceive that

Trustees & Investing Companies would not regard as a first

class investment a mortgage on a property the title to which

would cease to exist say in forty years.

With regard to the concluding paragraph of your

letter it is difficult to say what suitable provision could

be made for the protection of the lessee. In the case of go-

downs & buildings used for offices it would be possible to

compensate the lessee on the basis of the rentals he was re-

ceiving but it would be difficult to compensate any person or persons owning property used for industrial purposes.

Take the China Sugar or Taikoo Sugar Refinery,

their buildings may have cost two million dollars. The profits

one year are 30% on aggregate capital of about five millions, another year 5%

We do not gather from your letter that it is

the intention of the Secretary of State to grant compensation

for loss of business profits. On the contrary it would seem

that