652
A-I should put it down at $65,000 plus the cost of the Godowns. They were doing business in 1887.
Q-It had been bought in 1884, so they had been getting no profit until the Godown had been completed, and they had to pay interest on Mortgage, and now you say the only value then was the cost of the land, $65,000, and the cost of the Godowns $36,000; in other words, you say it was only worth $101,000 in 1888 ?
A-Yes; the profitable part of this business is the lending part. It is not the actual rent received on the storage of goods, but the interest they obtained on money lent by them on some of the goods stored.
Q-That is not included in ren's derived. Now, what do you think anyone would have paid in 1888 for these Godowns?
A I cannot tell you; I can only tell you what Stephens and Howard actually made.
Q--Have you ever seen the Ordinance relating to Rating?
A-Yes.
Q-Do you know that it is the practice for the tenant of a Godown only to fill in the tonnage capacity of such Godown?
A-No.
Q-If a Godown Keeper only stated the tonnage capacity, and did not fill in the rent received; what then?
A-I only know that the owner has to send in an account of the rent receiv- ed at the end of every year.
Q-Now if a property cost $101,000, would not you think that a fair gross rental would be $7,000 per annum?
A-Yes.
Q-Would you consider less would be a fair rental, say $6,000 ?
A-Yes.
Q-This property was rated as soon as the Godowns were completed?
A-Yes.
Q-At that time the rental was quite problematical, so that $7,000 was very good at that time. In 1888-at $6,600 it was properly rated, do you think?
A-Yes.
Q—Now, $6,600 being the rateable value in 1881, the capital value of the property was $101,000 ?
A-In 1888 the nett annual income was $10,289, and in 1898 the value of that property based on the assessed rentals; that is $6,600 per annum, capitalised at 7 that was $85,300.
Q-If the rateable value was $6,600, and the capital value of the property was $101,000 in 1888, what would you say the value was in 1898?
A-It was just about the same.
Q-That is, say about 16 years' purchase on the assessed value?
A-I do not know.
Q-Now, in the third paragraph of your valuation, you will note you say there was a mistake with regard to a piece of land?
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