32
Appendix V.
SIR,
COLONIAL SECRETARY'S OFFICE,
SINGAPORE, 19th February, 1896.
In reply to your letter No. 246 of the 7th instant, I am directel to inform you that the Bill to provide for Registration of Partnerships has not been proceeded with since the second reading, nor has the question whether it will be proceeded with been decided. The matter remains in exactly the same position as at the date of my previous letter.
2. The Bill is one on which public opinion has been very much divided, and it was thonght expedient to postpone passing it so as to accomplish other more pressing legislation and to give public opinion on the subject further time to develop.
The Honourable
The Colonial Secretary,
HONGKONG.
I have the honour to be,
Sir,
Appendix W.
Your obedient servant,
J. A. SWETTENHAM,
Colonial Secretary.
SIR.
HONGKONG GENERAL CHAMBER OF COMMERCE,
HONGKONG, 31st October, 1900.
Recent proceedings in the Bankruptcy Court, and more especially a judgment delivered on the 9th July last by His Honour Chief Justice Sir John Carrington in the case Kung Hing Shing Kee ex parte Albert Al Wee, in which it was laid down that, according to the provisions of the Bankruptcy Ordinance of 1891, Chinese traders or others non-resident in the Colony, although carrying on business therein under a firm name either by themselves or in co-partnership with others, are beyond the reach of that enactment, have made it apparent that the law as it stands does not afford that protection to creditors which was intended when it was framed, I am therefore instructed to request you to be good enough to bring the question to the attention of His Excellency the Governor with a view to seenre amendment of the Ordinance referred to.
2. The result of the case above quoted has convinced all those engaged in commerce in this Colony that it is practically useless for a creditor to institute Bankruptcy proceedings against a Chinese firm, since if it should subsequently appear that any one member of that firm is domiciled in China, and has not ordinarily resided in Hongkong within a year of the presentation of the Bankruptcy petition, such proceedings could be ammulled. The Chinese custom of carrying on business under some fancy name, and of the firm consisting of a large number of partners, many of whora may be resident in China, and placing the conduct of the concern in the hands of a manager or of a partner possessing only a small peenniary interest therein, is well known, and the evils arising from such custom have long been felt and acknowledged alike by British and foreign merchants and by the Chinese themselves.
3. The Committee, in asking the Government to amend the Bankruptcy Ordinance of 1891, do so in the full assurance that they reflect the views and give expression to the wishes of the entire mercantile community, the legal profession, and the judges administering the law. In order to facilitate the cud in view, and to indicate the direction they think such amendment should take, the Committee beg respectfully to submit the draft of a short amending Bill (enclosed") for the consideration of the Government.
4. In forwarding this draft Bill, which the Committee believe will have a most salutary effect in helping to reduce the number of fraudulent bankruptcies, they are not so optimistic as to expect that it will act as a complete check on all frand of the kiml. To secure this it will be necessary to establish a system for the compulsory registration of the individual members of Chinese firms or hongs trading in this Colony.
5. This is no new question, nor is it a novel panacea for commercial ills. The advisability of the creation of such a system was considered so far back as 1874, when a Bill entitled the Victoria Registra- tion Ordinance was drafted for the purpose, but did not become law. The question was again urged
*Not printed.