EXTRA
THE
CHINA MAIL
HONGKONG, SATURDAY, JULY 18, 1925.
BROKERS' PLEA FAILS.
JUNE CONTRACTS
TO BE
BINDING.
LEGISLATIVE COUNCIL DECISION.
REPUDIATION AND THE COLONY'S INTERESTS.
At a special meeting of the Legislative Council this morning representations were made on behalf of buyers of shares that there should be a complete annulment of all contracts for the June settlement. The advice of the Ilongkong Stock Exchange and Sharebrokers' Associations was, however, accepted, that the alteration of the June settlement day be from June 23 to July 23 and that brokers be considered personally responsible for all contracts made for the old June settlement.
make
The Hongkong Stock Exchange date, July 23, and providing an likely they would be at the end and Sharebrokers' Association option to the buyer who wished of September and the honest were represented at the proceed- for an extension of time in taking investor, honest and far seeing in ings by Mr. E. L. Shenton, of up shares Ed's Note) was that that he had invested his money in Deacons, and the views of the in the circumstances of the pre- shares belonging to concerns in brokers were put forward by Mr. sont case it was wholly impossible this Colony, would find himself Elsley Zeitlyn.
for the business community to with a security on which he would Mr. Zeitlyn opened and said find the sum necessary to, pay the not be able to raise funds either that on behalf of more than 100 amount involved in the difference to revive or carry on business.
Those were the considerations business men of this Colony who between the flat rate-and-the-con-- had bought shares which were to tract rate. The springs of credit which he had been instructed to have been delivered or settled on were dried up, commented M. lay before the Council in the June 23 he had been asked to Zeitlyn, and that amount was greater interest of the com- representations to His wholly out of the reach of the munity, concluded Mr. Zeitlyn, and particularly by reason of the Excellency and the Honourable business community involved. Council. The considerations Again, even if that amount was fact that if legislation with which he urged upon their con- found, impossible though it be, retrospective effect was to be sideration was firstly that as the there would be no end to the indulged in it might be indulged spirit of British legislation was liabilities of the buyers by the in for the greater good of the that the greatest good to the payment of this difference and greater number or, inversely, as greatest number might be there might still be an amount he had said at the commencement, achieved, that spirit might still found due in September. In the that the measure of injury should be honoured by legislating so that interval it might be that interest-be to as few as possible in number. the smallest measure of harmed parties would depress shares might be done to the fewest in and even if they didn't and a number. The proposal which he counsel of self denial could be meetings was asked to bring forward was conceived of the shares would be Exchange that there should be an absolute still further depressed by the fact Association had held and referred annulment of all contracts for the that every one would be bound to June Settlement.
se'l to meet the necessity.
The annulment which he was naked to urge for would not extend to the July, August, or September settlements but would be confined to the June settlement because that involved a very con- siderable number of people in this Colony,
Lesser Of Two Evils.
Mr. Shenton's Views.
Mr. Shenton spoke of the
which the Stock : and Sharebrokers'
to the resolution passed by them by 36 votes to 1 yesterday in which the desire of the Associa- tions was expressed that the It was in the nature of a choice Governor and Council might see between the lesser of two evils fit to modify the Bill at present for the business community he before them and that if legisla represented, said Mr. Zeitlyn, and tion in respect of the June settle- they would have to consider ment day was to be introduced 'whether it would not be the wiser the alteration of the June Settle- The consideration that he had and more honest course to seek ment date should be from June 28 been urged to bring to the notice the relief which the bankruptcy to July 23, that all contracts of this Honourable Council jurisdiction of this Colony afford- which were met by the old June settlement should be rendered against the proposal embodied in ed them;.
Those who had sold shares and valid in the same way as if they the Bill before it (for the exten- sion of the June settlement over found that buyers could not take had been performed on July 23 - four, days, for the carrying them up would still retain them and that it should be pointed out through of the settlement on one at greater value than it was that in the case of every one of
-
*