CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 12

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6.

Turning now to Your Lordship's

second enquiry, viz.:- the amount of compensation involved,

Mr. Hutchison's report shows that the total estimated

capital of the ten Divans in question is $3,290 and the

mean of the average monthly profit of 8 Divans is $24.02

while two Divans those kept by Lo Chung and Ch'an Chun

Shan which opened respectively under their new proprietors

on the 12th. of last April and the 20th. of last March are

at present running at a loss.

7.

The question of compensation to

the 10 Divan-keepers is however a comparatively subordinate

one, and the chief reason why I requested Your Lordship's

sanction to formally issue the licences (which as I have

shown have except as regards the mere formality

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been

already granted (a) by the fact that Government has allowed

the Divans to continue and (b) by the fact that they have

paid their fees to the Farmer) was that if the Government

now refuses to issue these licences the whole question of

compensation to the Farmer is at once opened and a new

complication is introduced into that question.

The legal advisers of the Farmer

have intimated to me that in their view the Farmer will

have legal claims for compensation if any Divans are closed

and