CO129-514-6 Question of legality of sale of water to Tai Koo Sugar Refining Co. Ltd.- from... 6-12-1928 - 23-12-1929 — Page 39

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In 1894 a stage had been reached at which it became

necessary for the Company to contemplate completion of a

reservoir into which the water had been diverted and

impounded; also the fact that the Company was, so far as

is material, under no obligation to pass on this water to

the lower lands, the streams and flow in effect terminating!

at and in the reservoir, also that the Company had the

exclusive use of the water so impounded, also that the

Company had nofactory, power-wheel, or the like, on the

Lot or on any adjacent land, also that there was the

Company's refinery, which needed the water, some distance

away and on entirely different and unconnected property.

In the above circumstances and as the Conditions of

Sale, the Crown Lease and Supplemental Deed were silent

on the point, the Company applied to the Government for

permission to lay a pipe line on and along intervening

Crown land including Shaukiwan Road.

The Government granted an annual permit, which has

been renewed from time to time, the latest renewal being

for the year 1928.

The present position, which calls for the opinion and

advice of Counsel, arises in this way,- The business of

sugar refining is in a very depressed state: The Company,

temporarily at any rate, has closed down its refinery, and

has turned its attention to the reservoir as a source of

profit if the water can be sold (they are now selling) at

the Refinery Lot (a separate holding on the sea front) to

water boats for the shipping, thereby becoming a serious

competitor with the Government which has a revenue produc-

ing water boat supply station at Kowloon, ample for

shipping needs.

3.