1938-04-13 — Page 15

THE

HONGKONG TELEGRAPH, WEDNESDAY, APRIL 13, 1938.

Library, Supreme Court

Rents Commission Report LANDLORDS COMPLETELY VINDICATED IN REPORT OF COMMITTEE OF THREE "Landlords As A Class Have Incurred Much Undeserved Odium"

Rents To-day Are Lower Than In Pre-depression Years

MANY. tenants during the depression years occupied flats and tenements which, in normal years, would be above their means. The fear of "loss of face" has deterred some tenants from moving into cheaper premises.

Notices to quit have been given in many cases because the land- lord is at last in a position to get rid of a bad tenant. Tenants have, for the past few years, been holding a

pistol to the landlords' heads,

There is no evidence that landlords as a whole are at present raising or notifying an intention to raise rents beyond, or even as high as, the level ruling before the depression. Landlords have perforce accepted unsatisfactory tenants during recent years. Tenants have been in arrears with their rents for months. Houses and flats have been constantly vacant, sometimes for years. Landlords have been called upon to pay enormous charges for excess water. Tenants, by threatening to quit, have forced rents down to CX- cessively low levels.

These are some of the highlights from the Report of the Commission of Inquiry into Rents, which was tabled in Legislative Council this afternoon. UNDESERVED ODIUM

The Report concludes:

"While we consider that landlords as a class have incurred much undeserved odium, we are well aware that there may be unscrupulous landlords who may take advantage of this Report to indulge in profiteering.

"Landlords should remember that in 1921 Government was forced most unwillingly to impose rent restriction, and that they or their predecessors found it a great burden.

"We recommend

no reason at present to improse restrictions, but is carefully watching the situation, and will not hesitate, should future cir- cumstances justify such a measure, to pass legitimate restricting increases in rent which unduly benefit landlords."

"The Association held a general meeting on March 22 and on the afternoon of March 23, We C- ceived

MEDWAY AND ITS DUCKLINGS IN HONGKONG HARBOUR

BRITISH SUBMARINES. attached to China squadron, seen stongside their Mother-ship, H.M.S. Medway, h Hongkong harbour.

"The

of

other large categories of invest- ment may be of value.

an

"For example, the total market value of the shares of local com- panies (other than financial in- stitutions)

the Stock listed by Exchange amounts to approxim

although $150,000,000, ately

portion of the assols appreciable of such companies is represented by property. Similarly, the estim ated total value of money invested in Chinese factories or in Chinese industry in the Colony amounts to about $50,000,000 which is only a ely small sum. Here again a substantial portion of such

undoubtedly re- money is

or by the property of such factories. The total note issue.

which is backed by silver and by sterling sceuritics, amounts to about $100,- 000,000, but even this sum, large as it

may appear, is for the most part held outside the Colony and only a small portion (authorita- tively estimated at 25%) is owned within the Colony.

LIVED ABOVE STATIONS "Many tenants availed themselves of this position to move into a clusy of premises considerably superior to that which they would normally oc- cups, and when, with the increased demand

for accommodation dluc the outbreak of the present Sino- mainly, but probably not entirely, to Japanese hostilities, rents began to show an upward tendency, these tenants found themselves faced

with demands for rentals which they could not afford to meet but which were not in the great majority of cases at

comparatively public statement that Government aces all exorbitant having regard to the class of property in respect of which they were charged.

Government Assessor Rates gave us an example in his evidence, of flats let in Wongnelchong for $145 per month four or five years ago, fetching after the stump and until the commencement of the up- tendency only $70 per month. ward made the general statement its members who informed us that that in some cases where he had

a deputation representative of and Inter

on account of the fact that their found what appeared to be a very advertisement had contained the heavy increase in rent, investigation (1) the prevalent charges for confidentially they did not feel at rents were excessively low for the words 'All replies will be treated had shown that during the depression rent in the towns of Vic-liberty to disclose particulars of any toria and Kowloon, having corp

class of properly concerned. I a regard to their rise and fall complaints they had fe

received.

were more normal level of rental The Association had not in-token as a standard, there was in vestigated any of the complaints, „fact no excessive increase. plaints received up to and including They stated that the number of com- trainers in which tenants and landlords have did not propose to

March 19, was 321 and that they

entertain been and are affected by further complaints. They requested any the sudden growth of the us to extend our population of Hongkong the complaints

enquiry, so far as since the beginning of Sino-ceived were concerned, until March that they had re- Japanese hostilities last

26, in order that they might find time to inform their complainants by Year:

means of press advertisements that those who desired their eases to be Investigated by the Commission, should communicate directly with us.

The terms of the Commission, which comprised Messrs. W. Schofield (Chairman), W. J. Lockhart-Smith and R. J. Min- nitt, were as follows:

A. to Inquire into and report upon

during the last ten years,

and

(2) the extent to which and

tho

B. lo receive oral and written evidence upon the foregoing Issues:

re

C. io make such relevant

commendations as may corts- mend themselves to members.

OVER 200 LETTERS

The first meeting of the Commis-) sion was held on March B, and in addition to letters addressed to Hls Excellency the Governor, the Hon. Colonial Secretary, and the Hon. Mr. R. H. Kotowall, 30 communications from laudiords und 186 communica- tions from tenants were

received

LARGE NUMBER OF

COMPLAINTS

REAPED SLUMP BENEFITS

"Many other tenants did not move from their residences, hut reaped the benefit of the clump by threatening to quit unless their landlords reduced the existing rents. The landlords were forced to agree to reduction in order to avoid being left with empty and wholly anremunerative premises on their hands.

of

These erve to make

comparative figures abundantly clear that a very large portion, if not the bulk, of the wealth of the Colony, a represented by property. That this must be so is hardly surprising in a territory where ulture, almost a there is little agriculture. complete absence of any trace of mineral wealth, and where is still only in its infnistry

any

"The igures quoted above may require some modification at the present time, but it is abundantly clear that

which measure would have the effect of depriving those persons whose capital is locked up in land of a fale retursi

money,

must necessarily on their be detrimental to the general well bring of the Colony,

"The Government Assessor Rates summed up, this aspeel of the situation in his evidence in the words "tenants have for the past "Evidence which really puts the few years been holding a pistol to

matter beyond doubt and disposes of the landlords' heads." tion, and the startling increases ar nese prominent member of the Chi-the necessity for a long inquiry into

stated that up

European bank. et alleged to have been imposed give evidence, whom we invited to particular cases, was given by a re-

"In view of the large number of complaints received by the Associa

we felt that we had no option but to agree to the request. "We sat on the morning and after- nuen of March 20 to deal exclusive-

between March 14

14 und Murch 24, "We concluded that the best method

with the Kowloon Residents to obtain a rapid and yet substantially accurate picture of the situation was,

Association's cases. Those tenants after considering as carefully as time, who had netually written to the As- permitted, the whole of the documents rockition, as distinct from merely illi- collected, to take selected cases of ing in its questionnaire, had been apparent

from notified by its Secretary that tlicy various type of house property in should report to us, and inter- different districts of the areas to viewed all those in possession of his which our terms of reference were letter. In addition, we heard what confined, and accordingly we heard "ppeared to be the more outstanding oral evidence in 54 cases.

appeared that

"It

genuine hardship

coses.

there

WDS

functions

we

gone back to pre-depression figures.

to

of tenants, and from our own en- quiries in the cases where both

presentative,

were

of a

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In a summary presented to us by November, 1937, beyond which date He told us that his experience dur- the deputation, which in six cases he had not pursued enquiries, statising the last six years had convinced were sald to exceed 150 per cent. ties showed that rentals hud not him that the position of house owners had been growing worse all the time

their revenue has gone." "We are satished by the figures bank had advanced money to many

- submitted to us, by the admissions such

of property Valuations owners.

arrived at

ved at by ascertaining the landlord and tenant appeared be-revenue derived from reals and cal- which fore us, that there is no evidence culating the capital sum on that landlords as a whole are at such revenue would represent a re- present raising or notifying an turn of 85%. This standard of cal- culation was not rigidly adhered to, Intention to raise rents beyond, or

basis even so high as, the

but represents the broad the level ruling

valuation. The usual advance was before Mie depression.

mited to 60%. of the valuation, and "A prominent member of the com- interest was charged at 6%. The munity, not himself a landlord of witness told us that in a great many house

use property, considered that even

ven cases during the depressed years In no case did we discover any if 1,000 complaints of increases of landlords had not been able to obthin a considerable misapprehension of

such huge increase as was alleged rent and evictions were received, sumcient to pay the 5% interes on the

in the summary given us by the which would only affect about one 10% of the valuation. At the end of scope of in certain quarters, We

Committee's deputation, but we per cent. of tenement Ants in the 1837 were

must frequently asked to prohibit land-

the possibility that Coluny, it would not be in the highest dredho had reviewed several hun- The values of the dred mortgages. lords from raising rent

some cases may have been over Interests of the Colony for Govern- properties, based on the rent returns looked in the prevailing confusion." ment to take netion.

at that time, barely covered the "In fac no such number advance, whereas a few years pre- complaints was received, and of viously the advance had only re- those received many were not presented 30% of what the witness substantiated. Two disinterested regarded as the real value of the witnesses of importance thought properties. there were a few hard cases, bul The evidence referred to in the that hard cases made had bw,

three

preceding

Is parographs authoritative, but in all cases land- lords have stated, und we belleve them, that they have suslained drop in Income, in most cases very "At the outset of this part of our severe, wille in many

In The Motor of November 30 you published an article entitled "Maintaining the Maximum." Well, here is something which compares fairly favourably with the Mercedes mentioned: Quite recently the Scout, with pay the mou

two up and some luggage, completed a journey of 70 miles (two passes included) mostly over badly corrugated two ronds, in 1 hr. 45 mins. In one place 70 m.p.h. was maintained for about six miles.

Our

01

giving

admit

notice to quilt, or to arbitrate between landlord and tenant. In one case a tenant who had been evicted on a REASONS FOR RENT INCREASES! magistrate's warrant desired us to

Only a few tenants were able to Intervene, and in another a tenant give the Commission continuous bla- who had been an unsuccessful defen-tory regarding the rise and fall of; dant in an action for recovery of rents during the last ten years. possession in the Supreme Court.

K. R. A. QUESTIONNAIRE

We had hoped on and after Murch

24, to devote our time to analysing |

No evidence and information we had

WAS

evidence "A wealth of furnished to prove that owners of house property were the victims of a disastrous slump during the years 1933 to 1937.

of

LANDLORDS' RETURN ON

CAPITAL

"In 1934 the rateable value (1,8.,

EVICTIONS

1

"No doubt there were during the Report, we desire to quote the fol- have not been able to:

СОВОЗ they obtained, and to drafting this Report, lust ten years cases of speculative but a delay was caused by circum-building in which men of straw when extract from the Report of interest on loans which they have stances which we desire to explain. hoped to make a quick boom proft the Economic Commission published been compelled to obtain from the We requested the Secretary of the were deservedly punished, and it is sessional Paper No. 3 of 1036 banks in order to carry on at all." Kowloon Residents Association, a fact that in the years 1933 to 1937 which had before our appointment there was in the Colony what has of the Colony) stood at $38,041,850.

"In July, 1930, the number of Inserted in the newspapers un ud-been described to us us an overbuilt This figure capitalized on the basty

Incorporating a question-position, but tho vertisement

majority

of seven per cent, per annum re- houses and floors standing, vacant naire whereby tenants were invited property owners must be regarded presents an investment in rateable was 9,505. At the end of February

ventilate their grievances, to as legitimate investors, and had it property of no less than $550,000,000. 1938, the gure had fallen to 592.

before us.

not been for the overbuilt position, This huge sum, large os it le, docs The Secretary to the Association the present

considerable Oro- | NOT SUITABLE FOR EUROPEANS neute shortage of ac not include very duly appeared before us on the commodation would have been much ment, the Navy or the War Depart-quit is faced with a serious dimculty. "A tenant who is given notice to owned by the local Govern- morning of March 14, when he in accentuated.

tis formed us that the Association had "During the years of severe 'dement, or all similar property which The Government Assessor told

that of the vacancles on his list at imp to that date received about 130 pression, property owners were left is not included for Assessmont.

questionnaire. We with great numbers of vacant tene "As it is not generally appre- present not one was multable for the replies to It - Ezrequested "hlm to ask his Committee menta on their hands, and were glad clated how large a portion of the Portuguese clerical class or Euro-

wealth of the Colony is invested pean subordinates. In properly, a comparison of this foregoing figure with some of the

10

to consider the correspondence, and to and tenants at rentals which did to balnet for us those cases, in which not yield, an finvestigation, seemed most decessary, capital outlay.

economic return on

Derty

- "Landlords have parforcé netapted

(Continued on Page 10.)

I feel that it is time that some notice was taken of the B.S.A. Scout. Seven months ago I became the third owner of a 1936 Scout 4-senter, milenge 12,000. A brief history of the car to that date:- The first owner apparently did not know much about the critical running- in period, because within a week he left for East London. At 10,000 miles, the car was sold and the second owner tock full advantage of the amazing cornering abilities of the car, for be ran through two fairly good front tyres in 2,000 miles. After all this bad handling, however, she managed to come in second in a local handicap race at the

Grosvenor Grand Prix track. A Scout also finished first, and we both roached maxiraum speeds of well over 70 m.p.h. (speedometer readings).

I would be interested to know if any other render could name a car priced up to £250 in England that would be able to stand up to the treatment that this or has had without any replacements whatever. At 20,000 miles I decided to have the engine rebored and the big-ends remetalied. It was necessary to fit a new second gear na I had run the gearbox without oll for about 200 miles. I have no connection or interest in the B.S.A. concern whatever.

"PROUDSCOUT."

Nowlands, Capetown, South Africa. This letter appeared in "The Motor," Jan. 25th, 1930.

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