116
THE HONGKONG WEEKLY PRESS AND
Witness further said that he did not keep any memoranda. He visited ten or twelve clients each morning.
His Lordship-But I have seen brokers in the morning making memoranda.
Witness said if be bad .. & lot of business which he could not remember he would put it down on a piece of paper. It was only occasionally, when there was any- thing good, that Monshi had a share in Polish walla's business. He thought when Mr. | Potts told him he had 150 Indo-Chinas for sale that they had touched bottom. Monshi's transactions were nearly all cash; witness had no account with him. When he met Polistiwalla he reported the purchase to him, and he said "I don't think much of Indo-Chinas; try and get rid of them." Witness certainly did not press the good opinion he held of the shares to Polishwalla. Witness did tell Polishwalla that he had a good opinion of the shares. When he saw Perry offering $41 for these shares he did not think there would be more offers. Perry was not a first (class broker. If the ,market had been strong witness's firm would have received the first intimation. Polishwalla did not make any profit because witness had to get a brokerage.
Mr. Francis-I am afraid that is the key to the entire transaction.
Witness had asked several people to give him double brokerage. Among those who had given him double brokerage and from whom he did not have authority to buy and sell, was Mr. Sharp.
Mr. Francis-Which of them? It is not Mr. Granville Sharp who gives you double brokerage, I am sure..
Witness-Mr. C. S. Sharp.
You do not claim the right of charging double brokerage without the person's express consent in each case?-No.
May I ask why, when you are sending in your accounts to your clients who have agreed expressly to allow you double brokerage, you do not put in double brokerage?—Because that was not our habit.
You were in the habit of working down or up the value of the shares ?—Yes, since this case commenced we have put in double brokerage. We did not know we were in the wrong before. You are satisfied now that it is a wrong way of sending in the account?-I am not satisfied, because it was my special way of entering.
Where does this Monshi live ?-He is not bere.
Where does he live?-He is in Bombay. His business is here.
Where is his business here and who is his agent or representative That I cannot tell. I know Mr. Polishwalla does business for him. You sold to Monshi for cash, you said Generally for cash.
-
Who paid the cash and where did the cash come from if the gentleman is in Bombay ?—I got it from Polishwalla.
Did you render accounts to Polishwalla of these transactions ?-Of course we did.
In the name of Monshi ?—Yes, we rendered an account every day.
Do you keep copies of those accounts that you render daily ?-Lately.
Regarding an entry on the 10th November of a purchase of Watson's shares from Paul Jordan, which the witness said he bought at $12.25, and was entered in the book at 812.40, witness explained that the difference made up his brokerage. He effected a sale at $12.40 four days afterwards to Mr. Gorham.
Mr. Francis Suppose you got an order to-day to sell a certain number of shares and did not succeed in placing them, say until that day week, when would you enter that transac tion -The day I did the transaction with both parties. If I have taken the risk I leave the entry open. If I saw a friend wanting the shares I would simply tell him I have got them cheap, and I would fill in his namè.
Then you say you buy them on your own account ?-We must take a little risk.
Don't you buy the shares yourself ?-I don't exactly buy; I bought them from Jordan..
Before you find a purchaser you enter the shares at a higher price than you bought them for P-I simply leave it open and fill it up when I sell.
Supposing the shares had gone up in the market to $15?—I would not have taken more than the full brokerage. I would have given them to any of my friends as a favour.
What do you mean by taking the risk if you would not take the profit when it came ? In a small matter like this. I did not want to take it. It was just to oblige Jordan.
You told us before you had no order for these shares ?-I did not say so; I was under the im. pression I could place them. When Gorham told me to go and buy the shares, I told him I could give him forty.
Mr. Francis-Produce your quarterly account up to December showing that at the end of the year the sum of $537,248 was due to you by Polishwalla.
Counsel for the defendants looked through a book for the account and it could not be found.
Mr. Francis-What is the difficulty about producing it?
1
Witness-It cannot be found. Ask the clerk and he will tell you.
Mr. Francis-And that is all you know about it! Can you produce securities you hold against that debt? They can easily be got; they can soon be made up.
At this point His Lordship suggested an adjournment.
Mr. Siebs, the foreman of the jury-Should the case not be finished on Monday, will you sit on the Race days, my Lord P
His Lordship-I am quite willing to sit on Tuesday or any other day you like gentlemen,
Mr. Mody-Tuesday is Racing Day, my Lord, and in the interest of the public we should like to postpone the case. I am very glad to serve on the jury in this Honourable Court. (Laughter.) Mr. Francis--Mr. Drummond and myself are quite in your Lordship's hands, and will do what the jury wish.
Mr. Mody-We want it postponed for three days.
Mr. Francis-Friday is mail day. It would have to be carried over to the following Monday. Do you agree it should be carried over to the following Monday?
Mr Siebs-Half-past twelve on the following Monday.
His Lordship-The Criminal Sessions will be and there are nine cases this month. What about Saturday?
Are you quite certain-my friend (Mr. Slade) suggests the question-that the name is not Moonshine? (Laughter).—No, it is Monshi.on, [Some one in court here shouted "Too smart."] Witness was asked to read some entries from the day book. He had some difficulty in reading an entry, when Mr. Francis said—
'Can't you read it? Witness-I can read if it is written distinctly; this is Potts's writing.
12
Mr. Francis-Can you read any writing ? Witness-If it is written clearly, I can. Mr. Drummond objected to Mr. Francis go- ing through all the book.
Mr. Francis said the object was to show, what they believed in effect, that in almost every trans- action with a broker there had been a charge of double brokerage.
His Lordship thought that only those entries referring to Gorham could be dealt with.
Mr Poute--Sit on Saturday at half-past eleven.
His Lordship-We had better take it on that day. We could adjourn on Monday till Satur- day at half-past eleven. I think gentlemen, you ought to get away. You had better ask these gentlemen (the counsel) to finish as soon as they possibly can.
14th February.
His Lordship-On Saturday afternoon, while Mr. Francis was cross-examining Mr. Kelly, some one in court shouted an exclamation; but I did not catch what it was, and I had no idea that it had reference to these proceedings;
|
[February 19, 1898.
such conduct is liable to very severe punish- ment.
Mr. Francis-I heard an oxclamation, but I did not catch what it was.
Mr. Drummond The remark was "Too smart."
it
Mr. Francis-If it was "Too smart might have applied to the witness or to me.
His Lordship-It is lucky I did not cate what it was.
Mr. Francis then continued his cross-examina- tion of Mr. E. 8. Kelly.
Mr. Francis-Did you not sell any Banks for Mr. Gorham for cash in October. or November or December?
Witness-I have not done-so.
Have you ascertained which member of your firm did so ?-It must have been Potts. I' cannot remember that he sold 200 Bank shares for cash.
You told us that you were specially asked by his friend Mr. Wicking to look after his interests in connection with these Bank shares and that you went to the Bank and assured Mr. Whitehead that it was all right and that it was necessary for him to get rid of these shares to relieve his account. Do you mean to tell me that you did not learn at the time or find out before that when or how he sold his Banks P It will appear in the books; I cannot keep everything in my head.
Don't you remember that he sold 85 Bank shares in October ?-The books will show it.
Did you hear from your partners when you were in England what were the particular trans-- actions to which Mr. Gorham took objection ? I did; my solicitors informed me.
Have you any recollection what the amount of his overdraft was that Mr. Wicking spoke about P-No.
Do you know how many shares he had with the Chartered Bank at the time ?—No.
Without knowing what was the amount of his overdraft or what shares he had with the Bank you went on his behalf to the Bank and said it would be all right ?-I went to the Bank, but did not make that statement. I said, “I hope you will be good enough to wait, as he is selling his shares."
You gave a guarantee P-I gave a verbal guarantee to the Bank.
Have you anything to do with the prepara tion of your firm's weekly share report ?—No.
OF
The report of the 8th December states that Watsons have been sold at 124." On the 16th December, "Watsons have been fixed at 121 and are wanted." According to your own state- ment you had sold, them at $12.40 and $12.50? -$124 meant business done by somebody.
Is your report a true report of the week's transactions?-About, yes. It is only meant to give an idea of the market to outside people. People dealing in the colony know the market; it changes every five minutes.
His Lordship-Why didn't you mention that transactions had also taken place at $12.50.--It might have been to enable the firm to buy some more shares for the plaintiff, or something of that sort.
Then you cannot rely upon the circular alto- gether? You can, but they vary a little.
Mr. Francis-You sold Watsons for (Mr. Jordan at $12.25 and paid him $490 instead of $496 ?
Witness said something about his brokerage, but it was impossible, for the reporters at any rate, to hear what he said. His answers to other questions were also very indistinct. ·
Witness said that up to the 31st December, 1896, the value of Polish walla's shares was, after deducting all interest, about $1,000 better than the amount the firm had advanced him. Either the Bank or the firm held the shares.
Mr. Francis-Does not the auticipated dividend on those shares form a considerable element in the market price?
Witness-I don't understand.
I don't suppose you do. Is not the market price fixed by taking into consideration the coming dividend P-No.
Before these dividends came in I suppose you put through in the course of the month another We do not put through more than we are certain of
Mr. Francis maintained he was entitled to ask therefore, I took no notice of it. Since then $100,000 transactions for Polishwalla ?-No witness the questions, and if he could not an- swer them without referring to the book he must have the book.
Witness-I do not know anything about books.
I have reason to believe that it was some com- ment on the case, but the officers of the court have not been able to find out who it was. should like it to be understood that such con- duct is very improper and any person guilty of
guilty
I see your transactions for December were about $109,000 P-I cannot tell without looking at the books.