1941-09-11 — Page 21

Thursday,

HONGKONG TELEGRAPH

WITNESS SAYS CONTR ACTORS

September 11, 1941.

WERE

REFUSED 10 PER CENT ON SLEEPERS

FROM PAGE ONE

month; one exploder $40 per month?"--Yes.

Terms Agreed To

The Chairman: In reply to that rock from 0 to 50 feet deep, from letter you got ane dated the game work face per cubic yard. What does day from Mr Blihop? Yes, Sir. that mean? That quotation was for The letter was read out, as follows; excavations of rock for an area from "I have acknowledge your letter the entrance of the tunnel 10 feet in of November 13 and I agree to the length only and after that the price terms "stated therein.” -would be higher,

Your price is to make a tunnel 50 feet in fength at $25 per cubic yard In rock and $3 per cuble yard in soft? --Correct.

And for the timbering of the lun- nel you quoted $10 per suble yard? -Yes

have this

tendere!

The Chairman; We position. Originally you for this work on n definite baals, so much per cable yard, they to supply All materials and pay all Inbour?--- Yer, Slr.

And you did. 200 feet Qi that bests? Yes, when we were told in carry on and start with the work, the price was not then fixed.

And then you went on with a Filding scule upwards, 50-100 feet, 100-150, 150-200, 200-250, 250-300 ní He did estimate the price?-WC varying prices which risq Kightly were not paid according in the according to the length of the tunnel? estimate. -Yes,

Your maximum quotation was $50) per cubic yard, for a tunnel 300 feet) long? Yes.

wa

10 Per Cent. Agreement Why not?--Well, eventually emme to an agreement that we were to earn 10 per cent.

{

an

Balch we had five, I did not then In other words, had you completed low that his Idea WAN

How did you invita tenders?—Wo making the work according to your own asked different transportation com-' A.R.P. turmeis. He asked me how quotations, you would have received panies to submit us tenders. much I

would charge for making less than you did on the cost plus tunnel somewhere in Kowloon,

How many did you ask?-Four or told him I could not give

len per cent basis?Yes. klm

Ave-the Oriental Transportation Co., Will you tell the Commission how Sam Hing, Chung Lee, Yat Cheong answer straight away. He told me it was you came to persuade the and Kwong Wing. That is all I can to go back and make enquiries. He Government to vary the terms of remember. also asked me how much I would the contract?-If we based the cost charge for hiring the machines.

on our quotations for 200 And subsequently you wrote him tunnel, it would be cheaper tot ple7-No, I myself informed them afetler on September 117-Yes, Sir. the basis of cost plus ten per cent.,

verbally, In that letter you quoted certain but if the tunnel were longer then prices for doing tunnelling work, the bosts of cost plus ten per cent. 8 ft x 7 ft, either in Jongkong would be cheaper than or in Kowloon? Correct, Sir."

Offer Accepted

Sir

the

we. quoted.

the

Did Not Persuade That is not the answer

to

foot

price

fo

You sent letters to all these peo-

Not In Picture At First Including your wife?-She did not come into the picture at first.

Did you inform your wife like you informed the other people verbally Were you prepared to do the work in Hongkong)-Yes,

my fregarding the tenders?—I did.

And what price did she quote you? Why did you mention Hongkong, question. The position was that you You had not been asked to tender this work at certain

had a binding contract to perform-$4 per lineal foot. for Hongkong? It was my own idea contract was not perfonned according firm?-The Wan Tung Transporta- rates. That What is the name of your wife's only; I meant to say that whether to those rates but on a new scale. tion Company. Hongkong or Kowloon, price There is nothing in writing, as far Do you know when it was formed? would be the same.

as I can see, Authorising you to-Some-time in February this year. That offer of yours was accepted † chu

change the rates, and I want by Mr Bishop on September 87-Yes,know how did I come about that was formed for the purpose of trans- Would it be correct to say that it That was in rock and In

Me Bishop confrms those prices in Sir." ground the quotation was $107-Yes, the letter to you of September 18 And he instructed you to proceed this basis7-We did not

you persuaded Mr Bishop to change portating much from the tunnela? And for the close timbering of and told you to get on with the job?

with the building of a tunel up to him to pay us in that way.

persuade No. that tunnel you charged $50 per got a reply to our letter, yes.

"What other work did it do, do you cuble yard?—Yes.

a footage of 200 feet?-Correct,

So he gave you perfectly volun- know?-No, because she looked after lind necepted the price and Instruct-

Before I received this letter I had a tarily?Yes. He also told you that Government

the business herself. conversation with Mr Bishop and he

AB

of sudden you woke up one

"She never discussed this frm with ed you to bullet a tunnel 200 feet

tuld me that he would let me have morning to find that Government you?-Never. tong at

a trial of a 200 feet tunnel, and see had changed the contract those prices7--Yes. Did you do the job? We had how well I could do the work, and plus 10 per cent. basis, is that It? work it performed was transporting But as far as you know the only niso see how much it would cost to On one occasion Mr Bishop sent for muck fruin your tunnels? Yes. make it.

ine. That was after the work had Can you tell me what the other At any rate you were told to pro-started. He told me that he had drs tendered for this contract?- reed with the work up to 200 feet?

worked out the price for Yes.

Yat Cheong tendered $4.50; s. The tunnels according to our

estimate

regards the others I don't remember. Was any of them less than $4.50? No.

You also confirmed that all these prices would cover the supply of all Implements and labour for day and night divided Into three shifts of eight hours each —Yes.

you

started work, on with the work.

Then what happened?–We carrica)

Al those prices?—No, sir.

In the alternative you said that you would be prepared to hire your Implements to Government? Yes. And you gave them a list of implements and the anoint

A what price. then? We were pold according to the expenflure of would charge per month?—Yes.

That

on the assumption that how much we expended, the labour, Government would do the work materials, and so on. itself and you hire the instruments?

Plus 10 per cent.?-Plus 10 per

Yes, sir, I was prepared to do cent,

that.

Nothing In Writing Estimate Not Accepted The position is that although Ma What was the next thing that hap-shop accepted your prices, and pened when you sent in the estimate?tructed you to build a tunnel 200 That estimate was not-adopted. feet long you in fact built that tunnel What happened?-About a month on the basis of cost plus 10 per cent.7

-That was

*

two niter Rubialssion of that estimate I was requested to submit another estimate.

24

Can you tell me if you received Laything In writing from the PW.D. Who were you requested by? verying the terms of that contract Mr Bishop.

Have you got the further estimate.

entered

into with them? No, sir. You received nothing in writing?

there? The second estimate wan-No.

about workmen.

Perhaps you can tell us how these At this stage, Mr Blake suggested tenns come to be varled then?-I do that all correspondence relative to not know, because everything was

done theough the estimate be produced, which was

iny rolleague, Mr ndopted.

Wing Kwang The Chairman: Apparently on! Would it be correct to say that September 18, seven days after you'" through Mr Kwong Wind's conversa- sent in this estimate, you got a letter, on with Mr Bishon that these terms from Mr Bishop in which he con- were suddenly varied?--Yes, sir,

And that would be around the Brined the prices for tunnelling work

Tegion of November 137-Correct, contained in your letter of the 11th?, TAKI

-Yes.

| sir,

Up to now, how many feet of tun- And he says, he has been authoris- ed to instruct this firm to proceed fiel has your firm treated?—I am with the work as soon as possible not telling the exact figure. I think about up to a footage of 200 feet?—it is something like 13.000 feet. Correct.

How many actual tunnels that re- He tells you that the site of the presents? I do not know how many.. tunnel mentioned will be pointed out "I Know Very Little" on the ground by Mr Campbell?—| How many sites are you working Correct.

un? tell you honestly that I know And you were instructed to sub-mu TItle about these places, Mr mit to Mr Blahop at the office the Kwong Wing knows better.

I am n cost sheets so that the cost of the ttle too old to supervise the work work may be worked out for the myself, and I seldom go over actually busis for further extension the to see those pinces. scheme7-Yes,

Have you never visited any of these tunnels?--Altreether only hill two or three visits,

You have not been there recently? -No.

Letter To Mr Bishop Now, the next letter is one dated November 13 from Kin Lee and Company to Mr Bishop?—Yes, sir.

connection

Is It Mr Kwong Wine who visits turm?-He frequently visits them.

Mr Wan Kin was informed by the Chairman that his examination would be deferred.

Supervisor Testifies

The next witness called was Mr. Kwong Wing, hend supervisor of the

The Chairman to Are you al present tunnels in Kowloon?-You.

sent supervising Can you tell us how your Arm erme to get the contract to de lun- els? At first Mr Bishop phoned the Kin Lee Company. I took the tes- sage and I represented the firm when

spoke to Mr Bishop.

therewith, at the rate of 10 per cent. Kim Lee Compa Mr Kwong Wing:

In this letter you informed Mr Blahop, as follows: With reference to our Mr Kwong Wing's recent con- versation with

your goudself on the above subject, namely, A.R.P. tunnels In Kowloon, we confirm the arranges ments made whereby we agree to

out any work Corry

in

over and above actual cost of inate- rials and labour, all piece work tenders of cost and materials to be approved by

your engineer, Mr. Campbell, before carried out. We will, pt course, endeavour to kee 'the cost down to the best of

ability.

"We also take this opportunity of confirming the following for super-by Mr Bishop to go and see him. vision of work and hire of certain What month was this?-September equipment: No. 1 Foreman $3.50 per | 1040, day;

Did you go to see Mr Bishop?.. 2 Foreman $1 per day; Night Yes, Sir. man $1.50 per day; No. 1 Fitter $2.50 Tell us what hopened?-e Arst per day $1

Draughtsman St per day; asked me whether I had Storesman per

day,

machinery or engine for excavation "Hire of equipment-One air com- operations for making tunnels. 1 pressor with motor $200 per month; said yes, Ile then asked me how one sharpening machine $150 per many, such machines.I had. and I

our

2 Foreman $1.60 per day; No.

Accmnting

was asked

Duy

On the basis of $50 per cuble yard in rock and $10 per cuble yard in! soft ground?--Yes.

And $15 per cuble yard for closed thnber?--Yes,

Site Pointed Out

to

cost

making

If the tunnel is longer than 200 feet. our price, comparing with that based on the cost plus 10 per cent. basis, Do you remember what the Orien- Would be dearer.

Therefore hetal Transportation Company quoted? asked for a change,

-$1 per cubic yard,

I understand what you menti: What difference is there compared with your wife's tender of $47-The Oriental Transportation Company's quotation worked out at $5 or $6 per non foot.

Dil Mr Campbell point out the What happened after that conversa- site for the tunnel? Yes, he came tion with Mr Bishop? He told me

to send a letter referring Interview I had with him.

over with Mr Bishop.

fo

And did you start the work?-Yes. You were told in this letter submit accurate daily costs sheets. 'Did you?--Yes.

to

the

Suggested By Mr Bishop Did he suggest to you that you should ask Government to pay you When did you start doing so?-cost plus 10 per cent.? Yes, and he From the first day when we started also, asked me if would accept it. work.

I replied yes.

Although you had already contract ed this work at certain prices?-That. is so.

Did you receive any money in advance from Government?No.

Did you complete that work, 200 feet? We did, I think it was some time in November last year.

.

Did you tell your wife of the other tenders?---No.

Does she live with you?-Yes,

Sole Proprictress

What is she exactly in this arm? -She is the sole proprietress, as fur as I know.

It was her money which formed the firm?-Correct.

You knew then that you were

Do you know up to how how much going to make more money than if Do you know how much it came you stuck to the prices agreed?-Yes,ney you had paid that firm for transporting the muck?-It is im- to nitogether?-1 ennnot remember. And so did Mr Elshop? Yes.

Have you got any books which Therefore we get this position: possible to tell off hand, because I

have fo

to remember will show us the figure that that That a binding contract between you

so many figures. Witness

Was

then told by the particular job eame to?-I have no and the Government was varied books but I have a list of the costs verbally by Mr Bishop, is that right? Chairman to produce at the next sit-

ting and expenditure which I submitted-Only in so far as the 200-foot

complete statement showing his firm's tunnel was concerned. to Mr Compbell,

weekly disbursement on the job from the time it was started up

yesterday.

No.

Have you got a copy of the Usi?—

Kept No Copy

Do you mean to tell me that Kin Ece and Company have no record of this job they undertook?-They have

Government has.

The contract was varied verbally and subsequently confirmed after you had written a letter on November 137 -Yes

To Benefit Of Kin Lee And that variation

WIN to the

Mr Blake pointed out that he had documents with him up

to July, while Witness said that once every week some one fram the Govern- ment came to his office to take away

no copy of this list but I think the detriment of the Government since the weekly sheet of expenses.

they paid more?-Yes, only in so far the 200-foot lunnel was concerned. And it was to the benefit of Kin Lee? Yes.

Kin Lee keeps no copy of the 1st which they sent to Government?— They do not keep copies of matters that are unimportant.

um not talking about important or unimportant matters. I am a ing about one inatter and that is the construction of the 200 foot funnel which you completed and which you said you got pald by Government.- not been paid yet. We have

You have not clair You have not claimed the money from Government? No, because the. work was so satisfactory that we workt on other sites carry on the Hasn't your-firm been paid for this 200 foot tunnel? No.

Even

though the work was com- a year ago? Yes, we nearly pleted have been paid but not according to the prices agreed.

Ah, so you did receive payment though not according to the prices, you contracted for?—Yes.

were instructed"

No Copics

The Chairman: Do you have coples of these? No.

Are you quite sure about that?-

yes.

You got

this new contract from Mr Bishop on November 13 telling you therein, the terms being to carry out to your office and takes your vouchers that he agreed to the terms stated A man from the Government comes the work at the rate of 10 per cent. away and you don't keep any coples over and above the cost of materint of them?-No. and labour-Yes.

How do you know whether you get Since then you had been perform-the correct amount from the Govern ing that work on that basis?—Yes.

Have you any idea up to date how

ment? We trust the Government.

Who is this extraordinary gentle- feel of tunnel you have finish-man that comes and takes away these And have you any idea how many of the PW.D.

documents from you?-Mr Buchanan About -13,500 feet. sites there are?-Five different sites. Not One Completed Where are they situated?-One op- posite the Alhambra Theatre, three in Hunghom, and one in Auatin Road.

Aru

After he has taken these documents, you never see them again?-They are all returned.

What happens when you get them back?-We have still got them, we put them away in a cement-concrete com- sufe

These are the documents we want, will you produce them? Yes,

On this job who supplied the plant and equipment? The Kin Lee.

any of these tunnels pleted?-Not one.

When did you start work on these five tunnels?-1 gannut tell off hand, Paid At Cost Plus

but we started work on the No. 1 What price did you receive pay-tunnel in September, ment at?-Cost plùs ten per ceni.

And then time after So in spite of the fact that you started more tunnels?YCH.

time you To make it clear-am i correct in made a firm offer to the Government

to build a 200 foot tunnel at certain saying that your only authority for rates and in spite of the fact that the building these five tunnets is your offer was accepted by Mr Bishop on letter to Mr Bishop on November 42 behalf of the Government, you were and his reply to you accepting your subsequently pald for that work on a terms?--Yes. cost plus ten per cent, basis?-We There is nothisut lald down as lu were paid according to the rate of how you should fulfil that contract cost plus ten per cent.

and as to who should supervise your Did the cost plus ten per work, is there?-Nothing in writing work out more than the prices you but verbally he told me that ME originally quoted?—Yes,

Campbell would supervise.

Everything in SCHOOL SUPPLIES

Esterbrook

STEEL PENS

FOUNTAIN PENS

Approved Points for School Use

Shirthank

Obtainable

The WING ON

cent

There is nothing In the exchange of letters between you and Mr Bishop which authorised you to sub-let this contract, is there?-No.

Admits Sub-Letting Have you in fact sub-let any of that contract? Yes.

On whose

and

Sold Some Equipment And have you sold any of your plurit Government?-Yes, items like small equipment to the machines for drilling.

You

$8,000.

know the total value of your to the Government?-About

per cent, on that? Yes.

And you charged Government 10

What is the total value of the hire of equipment to the Governmat per month?-$1,300,

On which you got 10 per cent.7— Yes,

plant which you hire to Government? What is the capital value of the -$45,000.

Have you purchased any timber for lining these tunnels? Yes.

first from Wong Tong Kee, and later Who did you buy them from?-At

that?-Me Campoch did you do from Shum Mow, Shing Chow, Lee

Yuen Lung, Tai Lee, and Kin Wab, that is all I can remember. пи

Purchased 10,000 Sleepers Did you purchase any sleepers?--. Yes, 10,000.

When did he give you that thority7-I don't remember but from the beginning we had sub-let part of this contract.

How many sub-contractors have you got on the job?-Five.

Are there any sub sub-contractors? That I don't know.

Have you got a wife? Yes.

Is she one of the sub-contractors? Yes.

Wife Wins Tender

What kind of work?-Removal of earth from, the tunnels.

Who gave her that sub-contract?

Who did you buy them from? •- From Kin Wah.

Was that for funnelling work?-- Yes.

Did you charge Government 10 per cent, on that?-Ten per cent. on 5,000 only.

Are you quite sure of that?--Yes.. Why didn't you charge 10 per cent on the whole 10,000 sindo they were for tunnelling work on the Kowloon

Tenders were called for and as she side? I asked Mr Campbell for it. submitted the cheapest, it was put before Mr Campbell who accepted

Dld Mr Campbell know she was your wife?-No.

but he refused. He told me that. It. when. ho or the Government purchased sleepers from Mareman's. they never charged 10 per cent.

But

· ́didn't Maraman's purchase timber from Kin L007- TURN to Back Pago, Column, 5.

You talks of tenders, did you call for tenders for the cartage of this earth? Wo did.

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