January 3, 1995.]
after the mortgage, to the present possessor for $5,300. I looked at the building myself.
According to what you saw, what was it worth? I should value it at a little over $6,000. I did so in 1892.
What did you base your calculations upon The rentals were given to my office, when the application for mortgage was made, at $711,60 per sunum. Mr. Tomlin waited upon Mr. Chap man, the assessor, and found the assessed value of the property was $630 per annum. The dis- crepancy between that and the rental return was very slight for Chinese property.
Ton base $6,000 on the rental of $711.60 per annum ?—No; on $630.
on circumstances.
Is that gross rental P-The net rental. Any allowance for vacancies ?—I would take
the rent book and see what the property had
yielded.
Say a net rental of $100 per month what would you value a property as being worth -I would calculate upon how much it is worth to lend money upon whether I could entertain the proposal or not.
Suppoes it brought ià a net rental of $100; bow much would you lead on it ?—It would pay interest on $17,500 or $18,000. You might lend $10,000 on it.
5
CHINA OVERLAND TRADE REPORT. the income, the ground floor and the first ChanKwai case he claimed, on behalf of the floor being the most valuable parts, Hon. F. Government, that there should be a dednotion A. Cooper was then called as witness and said made on acconat of the excessive rentals obtained that he had examined these houses and valued through overcrowding, the number of foors them at $4.389, the amount of the Government being practically doabled by the introduction of offer, although he considered the amount really mezzanine floors and cocklofts and cabioles, and in excess of their exact value to-day, notwith-evidence was given to show that baving regard to standing they sold in 1892 for $6.000.- The the cubic capacity, if each tenant were allowed cubic capacity of the buildings was 59,000 on bio the new 400 cubic feet and paid an average of $4 feet, which at 3 cents a cubic foot would make per year, the buildings, even if crowded, could not the estimated cost of construction of the build contain enough pople to produce the annual rental ings $1,770, and he considered them worth t to that was retured and claimed. The learned day $1.239. He valued the land at $1.75
counsel for the Government also said that, in this square foot, which would make $2,619 for the connectión, he wished to thank his Honour the land. The rent returned to the treasurer for Chairman for the statement he had made, You have had experience in valuing proparts: 1894-1895 was $578.40, including, rates. The at the previous session, of the principles by what is the principle on which you go?-In deductions to be made were rates $75.19. col- which the Board proposed to be guided getting at what would be a safe sum to lend Ilection $28.92. insurance $17.70, repairs $61 65, in determining compensations, and be would should ascertain the exact rentals. I should Crown rent $7.66, making all told $191.42, which like to point out two things which he hoped require these rentals to yield as much again as the deducted from the $578 40, would make about the Board would carefully weigh before ar- interest of the loan would come to. It depends $387.and this, multiplied by 12, would give $4 144 riving at their final decision. The first was as the value of the houses, on the basis of the as to whether this rental should be estimated on new Ordinance. The Government had offered an average of years or on the return made prior $4.399. He considered the condition of the to April last and the last year preceding. He houses undesirable, and he valued the deprecia-contended that the last returns sent in by sn tion of the houses at not less than 30 per cent.
owner, before any plague had be›ken out and be The basements were dark, badly ventilated, and fore any idea of resumption or compensation entered from a narrow lane, and unfit for human was present to the mind of the owner, habitation. He also understood that some of shoull be taken as a basis of rental com- the first osses of the plague were carried from pensation and that rents had been going these very basements. The buildings - have | down in Taipingshan and that, if the pro- messsning floors and cook-lofts. He said that he party had not been resumed. it was probable that had calculated his valuation on the last rental rents would have gone down still farther as soon return. Mr. A. Shelton Hooper was then called as the new stringent sanitary requirements were and showed his method of arriving at the value put in force, and that, thongh that law was not of the property, by which he made it over $7,000, iu fore in June last, it would have been passed but he based the valuation on a higher rate than and come into force now whether Taipingshan 7 per cent, and did not allow for certain deduc. had ben resumed or not; therefore the owners would not havə been able to continue the illegi- The next case taken up was that of Mr. C. timate state of things that had formerly existed. Palmer, represented by Mr. H. L Dennys, Mr. The second point to which the learned counsel Dennys submitted three systems of determining invited the attention of the Board was that the the valuation, either one of which came out at words of section 13 of the Taipingshan Ordin- about the same figures, the amount of his claim. auce were very wide in respect to the deductions The first was to calculate the value of the ares.
that the Court might make, and the words "ör at $4.75 per square foot, which yielded $13,770, otherwise as to it may seem fair and reason- and five buildings at $1,305 each gave 36.525. able gave the Board power to make deduc... making total of $20,295. The amount claimed tions where it seemed to them that the rents was $20 432. The second method was to use the
were excessive: owing to overcrowding prevailing rental as a basis; five houses at $23 would be $140 in the premises, which, he said, could be preved per month, or $1,650 per year. Dednoting for in several of the cases, and he urged the Board. Crown rent $12, insurance $75, rep: irs $100 to follow the analogy of the Housing of the making & total of $187. it would leave a net Working Classes Act of 1890, which he proceeded rental of $1,493 | Adding to this ground to quote. He called particular attention to sec- rent. $906, capitalisation of the buildings tion 21 and urged that the circumstances in at 15 years and 7 per cent. would make $5.341.70 which Taipingshan was resumed were vory and, capitalisation of the ground for the same
similar to those ander which compensation was period and rate would make $14.171.72, or a total provided in the Imperial Act just cited, which of $21,892,42. The third method consisted in con- says that, with regard to lands compulsorily sidering the property as equivalent to an invest-taken in pursuance of that Act, evidence should ment that would yield. at 7 per cent. $1,493 be receivable, 1st, "That the rental of the annually, that is to say, a vapital of $21.328. house or premises was enhanced by reason of Now adding the amounts obtained under the same being used for illegitimate purposes these three separate methods of computation or being so overcrowded as and taking the mean this would give $20,43 !, the amount claimed, which was certainly as reasonable, from whatever standpoint one looked at it, as could be asked. Mir. Palmer was then examined as to some items concerning his rent returns to the assessor while he was away from the colony, and the Court then adjourned until Monday,
In the case of this property, the houses were valued at $2,400 for insurance purposes by the company's surveyors and you deduct that from the last prios at which the property changed hands; |tions made in estimates of the others. that leaves the foundations and the land alone at the very moderate price of $1.88 per foot.
To the Attorney-General--I lept $4,000 on the property at 71 per cent.
To Mr. Wilkinson-We were not asked to lend more in this case than $4.000.
If asked you might have lent more ?-Yes; we might. In making our calculations we calculate upon what the property would fetch on a forced sale.
To the Attorney General-I do not think 34 per cent, on the gross rental would be enough for repairs for the next fourteen or fifteen years for these houses
Hon. F. A. Cooper, who had personally in spected the property, estimated the present value at 84,284, but in consideration of certain circumstances had offered $5.355.
The second osse taken up was that of Mr. A. J. May in claims 1 and 13. He was repre- sented by Mr. C. D. Wilkinson. Basing his olaim on estimates made in a manner analogous to that used in the foregoing case, he claimed to be entitled to $6.754. and in any event to $6.500, while the Government had offered only $4,399. Mr. Leigh was then called as witness and said that he valued the property at 36,140 plus 10 per cent. That the property was fully developed and in good condition The rents had been for 1892 8510; | for 1893 $470; for for 1894 $470; making a total for the three years of $1,450, which divided by 3 would give an average rental $183.33; or for convenience may $480, which capitalised would give 36.140. He said that the property had not depreciated much. The Crown rent was $10k taarom $20 on.
|
10!
be dangerous
or injurious to the health of the inmates" in which case, 2nd, the compensation should only be based on the rental which would have ben obtainable if the home or premises were occupied for legal purposes and only by the number of persons whom the house was fitted to accommodate, without such overcrowding as to be dangerous or injurious to the health of the in- The Taipingshan Arbitration Board, satmates." This important Act also provides in again. on Saturday and continued the con- section 41 "that the arbitrators are to make no sideration of compensation cases. No deci- additional allowance for compulsory purchase "
but his Lordship said that to-day (Monday) the Board expected to decide what deductions from the rent would be made and how many years purchase would be allowed in determining the value of the property. He wished, however, the learned counsel to bear in mind that the Board was principally interested in having two things clearly brought out, namely, the actual rent earned by the property and the general condition of the buildings and improve ments. He also said the Board expected to sit three days each week and would push on with the cases as fast as their importance would per- mit, and that they would begin on Monday with No. 4, then take up 11 and 14. and on Thursday the case of the Italian Convent.
fire insurance $18; repairs $45 ; - and that there |siong have been given in any of the cases. The learned counsel next called the attenti ought to be a further reduction of $90 for
of the Board to sec ion 13 of the Taipingshan putting the place into sanitary condition.
Ordinance, which specifies that “the Board may The place was sold on 27th July, 1892, for $6,000,
make deductions not only in respect to age, Ho, like several other witnesses that had testi.
character, insanitary condition, and state of fed in these l'aipingaban cases, said he had
repairs," but also or otherwise as to them may never heard of allowing anything for the collec-
seem fair and reasonable," and that therefore sion of rents, that it was, amongst Chinese, ́al.
deductions for surroundings should be made and ways done by the proprietor himself, and with
were admissible under these words 'or other- other people it was attended to by the shroff or
wise," and also that where the house or some of the regular employes: Five per cent.
premises taken were unfit and not reasonably was only paid to a regular agent who took en
capable of being made fit, the compensation tire charge of the property. Even if a charge
should be simply the value of the land and were to be made, there were plenty of China-
the materials of the building. And now, men who would be glad to do it for 1 per cent.
your Lordship, continued the Attorney-General, The premises of No. 23 was a shop downstairs
in this particular case that we are now about and residence upstairs and Nos. 25 and 27 were
to continue, Claim No. 10, we have a good coolie lodging houses. While the family house The Court then turned its attention to the con- illustration of the desirability of taking the last was divided into cubicles, he did not know that sideration of the completion of the claim of Mr. year's rental as a basis for the compensation, for it was any worse then many others, He Paliner, and subsequently to that of ChanKwai, here we have a lot of different theories and thought all the houses needed was concrete No. 10, and in connection with these two | elaborate calculations of experts and to attempt in the basement. They did not yield much cases many interesting pointa arosa fox to find one's way through them only leads to con- rent before and he did not think that the consideration, which the Attorney-General fusion. Why should we take a number of years. addition of concrete would add anything to explained in detail. In regard to the land, if so, what is to determine the number?
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