1938-04-14 — Page 11

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HONG KONG' DAILY PRESS

RENT COMMISSION, REPORT

(Continued from Pare 7)

GENERAL

"NOT SUITABLE FOR EUROPEAN SUBORDINATES"

Solutions Suggested But

Found Wanting

Rent Restriction And Rapid House Construction

"AS DISINTERESTED WITNESSES of importance have unanimous- ly testified, the great difficulty inherent in a statutory restric- tion of rents is to devise, an equitable basis upon which a, standard rent may be assessed. If the level obtaining immediately before the present rise in renis commenced be taken, then as we have shown the effect will be artificially to continue the depression as regards honse property owners and to deprive them of a living income.

"Legislation which will further undermine the already depreciat- ed value of Investments constituting "a very large partion. If not the bulk, of the wealth of the Colony" can only work against the best "Interests of the community as a whole. The ruin of private enter- prise with holdings on so vast a scale must lead to repercussion

is exaggerate. It especially the extent of which it is difficult to worthy of note that we have evidence that large corporations cou- Chinese banks. trolled by both Europeans and Chinese, including have been forced to borrow frein European banks with their dealings in house property.

"If rents be limited to a certain reasonable net percentage return on capital outlay. again the ten- Bnts will not benent as against the majortly of landlords, for we are satisfied that landlords as a class will not derive an undue re- venue from their investments even when the proposed increases are taken into account, and such a measure would Invite fraudulent

H connection

Evictions And Alternative

Accommodation Discussed

UNION

INSURANCE

MEETING

(Continned from Pare 4)

War. Risk

WAR RISK LIABILITY Your Chairman Jast year, re- DISCUSSING EVICTIONS and alternative accommodation, the Com-ferred to the steps being taken to

missioners pointed out that in July, 1936, the number of limit Underwriters' houses and Boors standing vacant was 3.305. Af the end of lability on land. An Agreement tri "The Government this matter was reached during February, 1938, the figure bad fallen to 322. Assessor told us that of the vacancies on his list at present of the current year and the danger to one was suitable for the Portuguese clerical class or European sub-all Companies of being faced with ordinates," they stated.

"IN SOME CASES an apparent notice of increase of rent probably amounts, as between Chinese landlords and tenants, to a notice to quit. The landlord in these cases has usually a shrewd idea of

As the landlord is now in the amount the tenant is able to pay. a position to obtain an economic rental and to insist on good tenancy. we think It likely that in some cases his way of getting rid of a tenant has been to ask for a rent which he knows the tenant can not possibly pay..

"In other cases the landlord states that he desires to obtain recovery of his property "for his own use, This may mean for the

LESSEE

nse of himself and his own family, "LANDLORD"

for near relatives, for more or less distant relatives or clansmen or for letting out as shops, factories or other business premises.

UNSATISFACTORY TENANTS

SCHEME

a huge War Risk loss on land has now passed.

It is probable that 1937 will prove to have been a good year for Fire business.

Our Fire results were particular- ly satisfactory. for with but one exception we made a profit in all felds.

to

· MOTOR CAR RESULTS Our Motor Car results in 1937 show soine improvement over the the steps 29 previous year due

taken to correct past had exper- lence. Unfortunately this impro- vement was bffset by an adverse [experience in other "Accident" classes. The severe Typhoon ex- perienced in Hong Kong during

Commended In September brought a large num

Rent Report

A lease of a whole house has

I turn now to our Accounts. The Marine Premium Income shows a substantial increase over

"Tenants frequently" alleged that "T the level of rents obtaining England, is in this Colony, at least the object of the landlord was in

of Claims and we suffered to before the depression be taken as as far as the majority of Chinese reality to obtain well to do refugee are concerned,

some almost tenants at an abnormally high the standard, then in our view no tenants

extent through War Risk benefit will be derived by the ten- completely useless. We asked the rent, but this was never establish-

losses in China. We were involved ants, for we consider that the in- Deputy Registrar of the Supreme cd. On the other hand in cases

to a restricted extent only, and to know creases now proposed seldom res-Court to supply us with #gures, where the landlord appeared and tore the prescat rents to the level and we found that sales under dis- claimed that he genuinely wanted

A scheme devised by a European You may be interested then obtaining.

traints, since September, 1937, un- the premises for his own use, we company, which has had infinite that liability of this nature no til the present time amounted to were only once in doubt as

to trouble with its tenants as regards longer exists as no new business was accepted or renewals granted whether he was speaking the truth. arrears of rent, defaults and excess a farce.

"In the very great majority of "In other cases where the land-consumption of water, is referred covering War Risk after 1st January

11937.

THE ACCOUNTS cases the landlord did not recoverlord has given notice to quit, he to the report of the Rent Com- even the costs of the distralut, may be suffering from. resentment mission. There is no doubt that there is at the treatment he has received often collusion between principal at the hands of his tenant during been granted to the occupant of tenants and sub-tenans as regards the depression:

one floor, who has deposited a the ownership of goods in premises which are the subject of distress.

"Landlords have perforce accept-lump sum by way of security with The Deputy Registrar supplied used unsatisfactory, tenants during the company, which pays a small with further ngures showing that recent years. Tenants have been rate of interest on the deposit.

The lessee is responsible for the landlords are resorting to distress in arrears with their rent for

Houses and flats have payment of the rent of the whole in a greater number of cases in months. recent menths, but we think that been constantly vacant, sometimes house, and has collected" contribu- warrants are isnted more with a for years. Landlords have beentions towards the deposit from the

to pay. enormous occupants of other floors, "It may be objected that rent view to getting rid of undesirable called upon

hope of charges for excess water. Tenants. He is to collect proportionate restriction is still in force in Eng- tenants than with any

by threatening to quit, have forced shares of the total rent from the land, and was at one time in force recovering arrears of rents. In this Colony, to which we reply "The ring cost of building at down rents to excessively low other occupants of floors, and is restricted by the terms of his that the circumstances in which the present time must hamper de- levels.

"We think that notices to quit agreement from profiteering. auch restrictions were Imposedvelopment.

have been given in many cases«be- |

The other occupants signed en cause the landlord is at last in a

application to participate in the

"Unsatisfactory tenants may be ed. dismissed without further notice,

valuations of property. No one with any experience of conveyan- cing in this Colony will question the possibility of such fraudulent

valuations

bear no comparison with which we are now considering.

those

V

1

"RESTORE CONFIDENCE" "We think that everything pos-

last year, but we must not build is includes considerable War Risk on all of this as permanent since Premium On the debit side, the most satisfactory feature is that despite a substantial increase in Premium we have been able to et- fect a reduction in Expenses.

The Fire Account shows the transfer to Proft and Loss Account of 9.62 per cent of the Premium income which is very satisfactory. It is not possible to compare the Fire figures now before you with those published last year for, as explained at that time, the latter

THURSDAY, APRIL 14, 1938. -PAGE 11

COURVOISIER

THE BRANDY OF NAPOLEON Fournisseur breveté de M. l'Empereur,

COUR VOLSTEN

COGNACS ET FINESCHAMPAGNES

Sole Agata DODWELL & CO., LTD..

WINTER CLOTHES

Women's, Men's & Children's WANTED URGENTLY

COATS & UNDER-CLOTHING

HONGKONG BENEVOLENT SOCIETY Monday & Thursday

ICE HOUSE STREET

10 to 12 Noon,

"We can only reach the conclusible should be done to remove position to get rid of a bad tenant scheme before the lease was grant. were for nine months only. The Danby, R.A. Dastur. E. Davidson,

sion that the statatory restriction the landlords' difficulties indicated in the foregoing paragraphs and

of rents is an impracticable mea- sure in present conditions.

hands of private enterprise.

to restore condence house but the problem presented by the property, but we doubt whether tenant who (a) is living in a class

1.4

of

floors.

LESSEE RESPONSIBLE

a method of

PASSENGERS ARRIVED

w

Messrs. X. 6. Morrison and G. were re-elected to the Osmund, Board. Messrs. Lowe, Bingham.arit

· V.R.V. | Matthews and Messis. Linstead Wand Davis were re-appointed

1937 expenses were however. less Leigh, Garner, J.HR. Hance. HS Miskin by some.

Master, LA £5,000 than the last Lee, K.J.

Petric. P.C. Potts, Agures published for a full year, 3.

Souza. P. Ribertro, MAR namely, 1935.

I am sorry the

Accident and Stapleton, H. Summers. Sum Pak auditors. General Account again shows a Ming, M.H. Turner, and R.L.D.

THOSE FRESENT" loss. I have just stated the causes Wodehouse.

Those present were- and can now only express the hope The figures themselves showing.

Hon. Mr. S. H. Dodwell (Chair- hat next year we will be in a hap-as they do, an increased Premium man), K. S. Morrison, G. Miskin, pler position in this respect.. In all Departments are evidence of H. V. Wilkinson (Directors), A. W. Comparing the Profit and Loss the good work of the Society's Hughes (General Manager), and

an increase in the iten holders I join you, Sir, in extend-Alves, G. 6. Archbutt A. EK notice "Expenses "not charged to othering our thanks to the General Cobb, Leigh Gurper, F. H. Farne, Accounts." This is due entirely to Manager. Branch Managers and L. A. Osmund, RL. D. Wodehouse. increased taxation, as other Items Staff of the Society's organization

arged to this Account in 1937 throughout the world.

BRITISH TRADERS were substantially less than in

The motion Was carried unanimously.

INSC. CO. Messrs G. Miskin and K.S. Mor-

THE BALANCE SHEET ...

1 more convenient way of treating this Reserve.

I cannot close without a refer-

CHINA FIRE INSC. CO.

N

The annual meeting of the Traders Insurance Com-

"Legislation prohibiting evictions

It is a term in the lease that alone without at the same time any immediate private develop of premises which normally com-the lessee shall be responsible for

mands a rent he cannot afford to restricting increases of rent would ment can be hoped for.

rates and excess water charges. prove useless. It, might, for exam- "We understand that the ques-pay, or (b) is given notice to re-

The company is willing to extend ple, he evaded by the device of ton of the building of various more because the landlord requires raising the rent beyond, the tenant's types of houses by Government is the premises for his own use. is this scheme, and in return for its increased security will be satisfied means, but in our view the time is now being considered by the one of real dimculty.

"As regards class (a), the answer with a lower rental than it would not ripe for intervention until the Housing Commission, and we do rent actually charged exceeds a not feel that any useful purpose would simply be, if there were no feel compelled to charre if a house Account with last year you will Staff, and on behalf of the Share- the following shareholders:—A A Agure which is fair in relation to can be served by our attempting shortage of accommodation, that were let on a monthly basis by the class of property in question in a rapid survey, to cover ground now the landlord is in a position to

How far the scheme is enforce- "RAPID HOUSE CONSTRUCTION which is being explored by experts' demand and obtain an economic

puserverent. the tenant must revert to the able in the absence of good faith "The sulution of rapid building "We merely desire to

if the accessarily slow that

provision apart from its

"ad-type of premises from which hen the part of the lessee is not free ac- came, but unhappily at the pre- from doubt, but in so far as it consummation, is attended

Is by ditional accommodation many difficulties. It is necessary cepted the correct solution sent time that type of premises proves workable it appears to us to 1936.

and deserve serious consideration by to restore confidence in the pro-to the present difficulty, and has itself been taken up,

To the Balance Sheet we have rison were re-elected directors and British perty market before much deve-private enterprise will not supply though the general restoration of other landlords as lopment can be expected at the that accommodation,' the only pre-depression rents may gradually ending many of the difficulties of

alternative is for Government to crae successive classes of tenants the present situation' in tenement/combined the Sterling and Cur- Messrs Lowe Binghan and Mat- pany, Ltd. followed and the Hon. Messrs Linstead and Mr. B. E Dodwell again presided. ing £3072.18.4. have set up a Gen-Darls re-appointed anditora. for He said "In 1932, 1,472 houses were ac- undertake the necessary contrac-one rung down the social ladder, property," state the Commissioners, rency Reserve Fund and, after add-thews and

eral Reserve Fund of £620,000. | the year..

Gentlemen:-It is with deep re- tually, completed. In 1937 only 188 tion, but we would add that any yet the humblest class will be

calculated to houses were completed. It is ob-action

discourage forced off the ladder altogether,

This was done merely to provide

gret that I refer to the loss Bus- enterprise should be and must either leave the Colony vious that the present rate of private

tained by your Company through of the or sleep in the streets. building is wholly inadequate. avolded 'in the Interests

the untimely death of Mr. T. A. GENERAL DEPRESSION

Mitchell. During his long service « "Several witnesses told us that Colony as a whole.

"It should be observed that it is The RM3. Empress of Asia. there is plenty of money lying idle "It should also be remembered

"Mr. S. H. Dodwell presided at the on the Board he contributed much enormous un-not only landlords who have been which arrived in the Colony yes-ence to the services of our Generat

Manager and our in: the-Colony, but that investors that there is an

Staff. They annual meeting of the China Fire to the Company's welfare in the have brought 115 satisfactorily Insurance Company, Ltd. Address-soundness of his advice and judg- have no confidence in land. They tapped reservoir of potential re- through bad times in recent years.terday from Manila, brought the

through a year of much difficulty.ing the gathering he said:-

ment... have before them the losses incur-fugees across the border, and that There has been a general depres-following passengers:---

Mr. and Mrs. A. L. Cunningham.and deserve our best thanks. red by landlords during recent any cheap houses erected may sion. In trade and commerce there

The steadiness of the Exchanger Gentlemen-Before proceeding years, and they require to be as- prove to be merely the receptacle has now been a considerable gen-Mr. A. Hirtz, Mr. B. Howard, Mr.

eral improvement.

and Mrs. J. 6. Landolf, Mrs. M. R. SECONDER'S SPEECH I would refer to the loss the Com-cerned is redected in the figures. with the business of the Meeting with which we are mainly con- sured that there will be a continu-for its overflow.

"We think that this improve-Mills, Mr. and Mrs. M. Pamintuan. ment is not solely accounted for Miss I. Pamintuan. Miss V. Pamin- In rising to second the chair-Tany has sustained by the death which do not show any very y the present hostilities and the tuan. Mr. R. Pamintuan, Mr. M. man's proposal, Mr.. E. Davidson served on the Board of the Com-the previous year. However, on the of Mr. T.A. Mitchell Mr. Mitchell material difference from those of la a general rise in renta, and a while the present conditions last influx of refugees into the Colony. Pamintuan, Mr. F. Pamintuan, Mr. said:-

and Mrs. M. Mr. Chairman, Gentlemen-Ipany for a number of years, and whole there is some improvement. sharp decline in vacant accom-but when the, property market A prominent Chinese member of D. H. Perry, Mr.

have much pleasure in rising to fat his passing we lost a valuable balances of the 1936 Marine Ac- modation, the market for the sale, the letting market) is normal the community told us that in his Revilla, Master R. Revilla, Mr. C. of land and house property re- again, there may a lot of empty ew the Colony had shown signs Robbins. Mrs. Robbins, Mr. R. second the adoption of the Report. adviser and friend.

of recovery, after a long depres-R. Roxburgh. Mr. and Mrs. J. A. Revenue Account and Balance It is seldom on these occasions and General Accounts after setting". mains depressed.

houses.'

that some explanation is not called up all necessary reserves, have been II Government sees it to erect son, quite apart from the Sino-Uner, Mr. R. H. Wild, Mr. F. C. Sheet as presented.

We have heard, from the Chair-for of the effect of Exchange upon transferred to the Profit and ̧ "Another factor which is un-houses, they might be reserved for Japanese hostilities. Whatever Its MacDonald, doubtedly depressing the market is the "present" for permanent re-cause,, the improvement is

man a comprehensive survey of the figures. Last year however, Loss Account. Mr. and Mrs. F. Danielsen, Mr.

The Nei Underwriting Proft for the excess water problem, and wesidents of the Colony who cannot Invite reference to Chapter X of find alternative accommodation.

"In the clerical grade of employ-W. H. Stewart. Mr. R. Priour, Mr. the Society's activities during the the Hong Kong Dollar rate on ment, however, there is as yet little L. R. Aguinaldo. Mrs. C. N. Ander. past year and the shareholders | London on December 31, was the the year amounts to 220,515.18.11. the Economic Commission's Re-

or ne improvement. Trading con- son. Miss A: M. Anderson, Mr. and will. I am sure, regard the Report same as on the corresponding date cerns have to recover from a/Mrs. Q. Belayea. Mr. B. Nichols for 1937 as very satisfactory. The in 1938. The figures are therefore Dividend of 7}- per share being the severe set back and in view of the Mr. F. E. Clay, Mr. Wm. Cowan, diuities of the year resulting more fairly comparable with those same as last year. prevailing uncertainty a cautious Mr. and Mrs. F. A. Von Helland.from uncertain political conditions of the previous year than is usual attitude is only to be expected; A Misa C. Faustino. Mr. J. Aruego, in many countries are well known ly the case, and show some in- witness to whose views we attach Mr. and Mrs. A. A: Bryan, Mr. to us and we are able to appreciate provement on balance. Darticular weight, did not think, and Mrs. H. Carron. Mr. and Mrs. the effect which these must have Shipment to South Africa of 200 there had been a long enough spell N. P. Cutler, Dr. V. Diamonon, on the Boclety's business. Despite balances of the 1936 Marine Ac-rison were re-elected to the Board:

these dimculties a hopeful note is the of good trade to justify increased Mrs. B. P. Dwelle.

struck as to the future and this Mr. P. Bernabe Mr. I. P. Cabal indeed is very welcome. ment houses, and one of the rea- British Government at the nominal wages for the latter class of O»'

leros, Mr. S. Caniza, Mr. J. L sons for increased rents, new that price of E200 sterling each, will clety.

"Nevertheless it is possible that Castro. Mr. Chang Chiao Ming.

THOSE PRESENT there is a demand for accommo-begin in March, according to the

The Net Underwriting Prost for Those present were dation, is to lighten this burden. Johannesburg correspondent of the in the near future an upward ten- Mr. 8. H. Chang. Mr. C. Alimal,

dency will commence, which should sister I Claraval. Mr. C. A. Those present were Hon. Mr. the year amounts to $165,506.76,- Hon. Mr. B. E. Dodwell (Chair--- "Investors also fear that should Daily Telegraph.

Your Directors recommend a man), 8. Morrison, G. Miskin, By 1843 the Union will have 250 In some measure help to solve the Cobarrubias, Mr. A. Comerre Mr. 8. Dodwell (Chairman), Ks. the present increase in population prove only temporary, the con- first-line, 250 second-line, and 250 problem of higher rents. There is P. de Castro, Mrs. C. de Leon. Morrison, G. Miskin, H.V. Wilkin Dividend of $12 per share and a H. V. Wilkinson (Directors), A. W. (Directors); AW. Hughes Bonus Dividend of $ per share Hughes (General Manager), and stant defaults in payment of rents reserve planes the strongest no doubt that at the same time Miss A, P. de Loon, Mrs: F. Elliott, son

there is a rise in the general cost Miss P. Elliott Miss M. Elliott. General Manager), and the fol-being the same as last year the following shareholders:-0. 8. will again recur.

Dominion force.

Mr. G. 6. Archbutt seconded the Archbutt, A. H. K. Cobb, Leigh,, South African factories will be of living, a condition which always Captain and Mrs. B. Fitch Mrs. 8. lowing shareholders: "It was pointed out to us by a

*W. Alabaster, J.ELM. Andrów, proposal for the adoption of the Garner, LA. Ormund, V. R. V. prominent landlord, that the regin in August to manufacture attends economic recovery, but A. Franco, Master E. Franco, Mr.

Pretoria steel. which at present is largely due to G. Geay, Mr. and Mr. V. Goquio 108. Archbutt, T.E.G. Brayneld.report and accounts, the motion Ribeiro, A. A da Silva, R. L. D. medy of distress, a powerful wea- howitzers'..from

the Bino-Japanese hostilities, lay, Mr. EL E Green :

Wodehouse C.B. Brown, AH.K. - Cobb, JD. being carried unanimously. pon available to a landlord in Only the sights will be imported.

ed demand for accommodation be.. "Anything that we build.' said fore they will supply it.

the Government Assessor of Rates, "For this reasor, although there is certain to be Alled

EXCESS WATER

port: (Sessional 'Paper No. 3 of

1935). The question of Govern- SOUTH AFRICA

ment policy does not concern us.

but we have found

as a fact TO HAVE

throughout our Iqqutry

that

קנן

charges for the consumption, of 1750 WAR PLANES

excess water have imposed-a.. heavy burden on landlorda, es- pecially as regards Chinese tene-war planes, bought from

.

doubted.

On-

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L

As you will have observed the

count and of the Fire, and Accident"

Your Directora recommend ✡

Mr. G.-8. Archbutt seconded the proposal for the adoption of the report, and accounta... As you will have observed the

Messrs. G. Miskin and K. S. More:: count and of the Fire, and Ac and Messrs. Lowe, Bingham and cident and General Accounts after Matthews and Mears. Linstead and setting up all necessary reserves Davis were re-appointed, auditors have been transferred to the Proft Bag Venezza

THOSE PRESENT and Loss Account, demande