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given us by the Committee's deputation, but we must admit the possibility that some cases may have been overlooked in the prevailing confusion.

12. In spite of our endeavours to make our inquiry as widely known as possible, in which we received some assistance from the staff of the Secretariat for Chinese Affairs, many tenants who were in a position to complain forthwith delayed writing to us until after we had ceased to entertain fresh cases.

The principle underlying the maxim " vigilantibus non dormientibus æquitas subvenit" may justly be regarded as applicable to such cases.

13. We have decided not to publish the evidence which we received, some of which was confidential, in the shape of appendices to this Report, and the only appendices annexed hereto are Appendix I, Appendix II and Appendix III, repre- senting respectively a table showing the decrease in vacant accommodation, a graph illustrating the same decrease, and figures relating to the house construction now in progress. The points from the evidence, both oral and written, upon which our findings are based will be found incorporated in the body of the Report, and the notes of oral evidence, the written evidence, the original memoranda and corre- spondence and a file of press cuttings have been communicated to Government.

14. Our Report is divided under the following headings:

1. Preliminary.

2. The Reasons for, and the Extent of, the Rise in Rents.

3. Landlords' Return on Capital.

4. Evictions and Alternative Accommodation.

5. Possible Solutions.

6. Miscellaneous and Conclusion.

and a separate part of this Report is devoted to each heading,

15. Finally, we desire to place on record our appreciation of the courtesy of the Honourable Secretary for Chinese Affairs in allowing us to make use of the services of Mr. Lai Chi-cheung as interpreter and Mr. Chung King-pui as translator. Our thanks are also due to the Chairman of the Urban Council for permitting us to make use of the Urban Council Chamber, and to the Honourable Director of Public Works for subsequently permitting us to complete this Report in his depart- mental board room. We wish to express our thanks to the Honourable Mr. R. H. Kotewall, c.M.G., LL.D., for collecting and forwarding information to us; to the Land Officer for certain data as to mortgages; to the Government Assessor of Rates for providing us with figures and assisting us in referring to his records; to the Execu- tive Engineer in charge of the Buildings Ordinance Office for compiling certain statistics and assisting us with an appendix; to the Deputy Registrar of the Supreme Court for particulars relating to distraints and to Miss R. Bercovitch, Mrs. A. Osmund, Mr. Lai Chi-cheung and Mr. Chung King-pui. To Miss Bercovitch and Mrs. Osmund for sterling work as typists and stenographers, and to Mr. Lai and Mr. Chung for equally good work as interpreter and translator respectively.

PART II.

The Reasons for, and the Extent of, the Rise in Rents.

1. Under our terms of reference we were to have regard to the rise and fall of rents during the last ten years, but only very few tenants were able to give us a continuous history for so long a period. This fact is of great significance, and goes to the root of the present situation of tenants in the Colony.

2. A wealth of evidence was furnished to prove that owners of house property were the victims of a disastrous slump during the years 1933 to 1937. No doubt there were during the last ten years cases of speculative building in which men of