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THE HONGKONG WEEKLY PRESS AND have here have been prepared by our accountant. | shop of No 56 was rented for $10 per month. Yes, of course, if you succeed in showing that an During the period in question the houses average of $ 173 per annum is as much rental as had earned rents at an average of $35 29; but, we could reas unbly hope to get, instead of if the $60 were added, that was due on the place 854), it would make a difference in the when it came into their possession, the rental amount of the claim we are entitled to would average $38, but during that time there We make no allowance for empty floors, since was loss by tenants running away on account that is partly considered in the pries of rent. of the plague, making another $49 or $50." The We have occasionally been allowed the rebate in 1993 and 184 returns were given early in 1893. tarition for snoh vacancies, specified in the Or During the last two or three years we have not 'dinauo4. We have not converted three storied returned forms to the assessor, on ace unt of the houses into six by mezzanine floors; the honses large number of pieces of property and the extra were as they now are when we came into posses. work it would give the assessor, but I have sion of them, but I bave never been inside them. taken my books and laid them before him and I believe there are only 6 feet 11 inches between he has taken his memoranda therefrom with my the floors instead of the 11 feet you inquire about. Written statement and bas entered the figures By His Lordship (to the Attorney-General)—on a thin long book of his, and if I could see that And yet the officers/connected with the Govern- book I could identify the data that he copied off. ment, having this matter in
rentals straight from the rent rolls. I do not remember filling out form A during this time, since all the information was taken straight from our books. I think the assessment is numerous made so low on account of the vacancies we had and the unusually low rentals received. We have had no reason to complain of any rate assessed by the assessor..
this state of things to go on large, have allowed I swear that I have truthfully given all our
The Attorney-General –Yes, your Lordship, there are lots of breaches of the law occurring all the time, of which we are ignorant, but when we do find them we bring them up for paaish, ment. (Addressing witness). By your putting in or having in extra floora yon have increased your rent and have, thús, added to the value of your property.
Mr. Bird—I do not think it has made so very much difference, for we should, under the Or iuance, be allowed to extend the floors half aeros at least and it may be more, and in any Cas bunks could be swong in..
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The Attorney General-At how much do you value the house.P—! value the houses at $2,690, and the difference between that and the $6,110. or 84.020, represents the valu • of the site.
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His Lordship-We cannot go by this state- ment of the assessor, because it is his own valua tion and not that returned. le fixes the value at $280, but says nothing of the actual rental.
The Attorney-General-Your Lordship, the Ordinance says the ratable value shall be that value at which it may be reasonably expected to rent, less a possible 13 per cent. for vacancies.
The assessor's memorandum book was then produced in court, identified by the witness, and
the ex The Attorney Goneral-How do you arrive the Attorney General procdd with
amination.everal hypothetical cases were then the capitalisation of your property ?
taken up to determine the value of the property Mr. Bird-It is substantially the same 88 that outlined by Mr. Deacon, I do not insure on certain bises of rental. A number of ques. the foundation, because it would not suffrtions were also put that brought out substantial materially in a fire. I consider 2 per cent. ly the same results and answers as had already ample allowance for repairs and for keeping that been secured. class of property in repairs. I think 34 per cent. for repairs is excessiva.
The Attorney-General then took up his argu- ment and showed wherein he considered the
the -- Attorney General -How is it that method of determining valuation by rental assessors, who generally value property at a pro-alone to be defective, and dissecting the evi- per figure, have in this instauen inde the valua-dence of the plaintiff showed how the amount that tion even lower than your wo figures P.
fr. Bird-I do not know. 11 arrives at his results in his own way, but I have always found bio fair
The Attorney-General-According to the as essor, the last valuation is $280, and that Should be a fair-value of the property. 5-6
Mr. Bird-As I have already explained, what we return as the rental valus of the property and what we pay on are two diff rout things
By His Lordship-i wish we ha{ the returns It would save so much time and troubly e
The Attorney-General-Your Lordship. I Have been trying to find those returns, but we m not to be able to fud any trace of them. By Mr Deacon-You have, do you not, two forms sent you to fill called A and B and in A Lue total rent is asked by the assessor ?
Mr. Bird I do not know. My olork attends
that
#oins, wukd
By His Lordship-If you were asked to bay a house in which there were apt to be vacant
you i
not take such into considera- tion in fixing the value of the hons P
Mr. Bird-We make no deduction for vacant Porus; in making loans we lend only 75 per
cent, of the value.
The Attorney-Gineral-How did you come into possession of this property ?
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Mr. Bird-We got the property by the man's leaving the colony.-
The Attorney-General-You are sure that the loan was not made at valuation so excessive as to be in danger of getting the property ? Aud did he not disappear because he got top price for th property?
the Government offered, in his estimation, was really in excess of the value of the property. His plan to determine the value of the property was-1st. to determine the value of the site, from a comparison with the value of surrouud ing land; 2nd, to fix the value of a new hou such as that standing on the lot, 3rd, then deduct the various items that may be considered as offsets, such as wear and tear and the other items already mentioned, and to establish all these points by systematic method and evidence. He objected also to the idea of calling leasehold freehold under any cir- cumstances. In a long analysis of his position, supported by the evidence of Hof. F. A. Cooper, Director of Public Works, and of hers, he claimed that the Government had made a liberal offer for the property.
His Lordship then said that uw that most of the preliminary considerations had been gonė through with, the cases conld be rapidly disposed of, and that all it would be necessary to do would, to determine the rents actually received and then come to some decision as to the number of
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years' purchase and the rate of interest to be allowed; aud that to-morrow he would finish this case and cases 5. 9. 10, and possibly 1, 3, 20, and 4 would be reached.
On
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[January 9, 1895.
last a ssion of the Board some of the most im.../ portant points in the remarks of the Attorney. General, in order that the position of the Go verament may be better indicated. We under stand that the Attorney General, in his opening speech, argued that the Lands Clanses Act was not a proper home Act on which to base the present inquiry; but the right Act for this purpose was the Aot commonly known as the Housing of the Poor Act of 1840, and he believed it was upon this Aot the Taipingshan Resumption Ordin. ano had been framed. He drew the special attention of the Board to the section of the home Act which dealt with compensation in respect of dwellings which were overcrowded or occupied for illegal purpose or in any way formed a nuisance. The learned Counsel also drew the attention of the Board to the recital in the local Ordinance and the reason given therein for. the necessity if resuming, namely, that certain portions of the said district have been found to be in a highly insanitary condition. Ife also drew attention to the words “full and fair compensa- tion" in saction 5 and pointed out that these words were apparently taken from the old Crown leases, which provide that the land demised may be resumed by the Crown, “ upon payment of full and fair consideration." to be assessed by the Director of Public Works. He further mentioned that though, by the Ordinance, no compensation was to be allowed to any sub- lessée or tenant, in the case of any house unfit from any cause for human habitation, and that owners were exempted from this deduction, yet It appeared to him that the Board should have been empowered to treat owners on the same basis in this respect as that on which sub lessees or tenants are treated.
The method of procedure in each case is now fixed and the investigations move along rapidly. First, the rentals are looked into, examining therefor both the witnesses for the plaintiff and the records of the assessor's office, and then any other person that can throw any light on what would be a fair rental. In this inquiry there is
the closest serutiny into the differences between the amounts sent in by the claimants from year t› year and the amount assessed by the assessor. Secondly, having taken ́all the testimony available on the question of rental, the Board next investigates the value of the build- ings on the property, including and excluding foundation, taking tar entries, insurance policies. and any other trustworthy record that bears on the matter.
Thirdly, the value of the bare ground is looked into. Then, fourthly, all the deductions that should be made from the gross income are considered, such as taxes, fire in- surance, Crown reut, repairs and maintenance, expanse of collection of rent expenditure neces- sary to put buildings in proper condition to last the number of years allowed for in the capi- talisation, and whatever other items each case may call for. Copions notes are taken by each member of the Board and by counsel on both sides.
being Nos. Nose first case taken up yesterday was claim
56.60 SQUARE STREET. Ng Tsu How claimed $7,550 in respect Nos. 56, 58 and 60 Square Street.
Mr. C. D. Wilkinson represented the claimant. The China Fire Insurance Co., mortgagees of the property, were represented by Mr. J. B. Coughtrie, Secretary.
It appeared from the evidence of the claimant that he bought the property for $5.300 two years ago.
One of the houses had since been burned down and another damaged. The three were The Taipingshan Arbitration Board sat again on Friday and proceeded with the considera-insured for $2,400, and he received $950 from tion of compensation cases. Several claims were the insurance company. He spent $1,200 in
rebuilding. submitted bnt judgment was reserved in all.
Court opening the
His Lordship said that before beginning he wished to remark that the Board had decided that the fairest way to determine the compansa- the rental value, but the question was, which rental it should be? Should they take the highest roatal, or the lowest rental, or an average rental, or the one just before the plagus? They thought in Mr. Bird cannot fall from memory
determining this the location of the house and Mr. Francis Maitland, the accountaut of its past and its prospects and as many other con- Messrs. Linstead and Davis, of which firm Mr. ditions as possible should be taken into con- Birl is the senior partner, was then called sider tion, sud on that plan they would proceed a witness and testifi that he hal with the hearing of the cases.
Mr. Bird No. he got into some trouble." The Attorney-General-Do you not charge 5 tion value was to base it per cent for collection of rentals f
Mr. Bird-Yeg.
By His Lordship-How many months rent did you collect before he left ?
on
His Lordship-You bought these houses for $5,300 two years ago and you now claim $7.300. Would you not be satisfied if you get your $5,300? Witness-I should be satisfied if I get $6,500. His Lordship-I dare say you would. Mr. R. K. Leigh gave his valuation of the property at $7,155, exclusive of the 10 per cent. for forced sale.
Mr. J. B. Coughtrie-I lent $4.000, on this property on the 3rd January, 1892.
Had you any valuation of the property made? -The matter was negotiated by Mr. Tomlin in my absence. We don't call it a survey, but the usual examination of the property was made. I And here, since it will have an important find the property was sold on 13:1 December, years and that the Brat eutry concerning this bearing on the discussion of all the cases that | 1886, for 85,600; on the 4th July, 1887, $5,800; pisos of property was 14th Nov. 18: The follow, wo tondense from the proceedings of the | the next sale was made without my knowledge,
kapt - the books of the firm for Might
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