May 20, 1899.]
from Mr. Mody's books. There was in Mr. Mody's ledger an account produced showing cor. rectly the balance of shares in hand on each of the dates given on the paper.
Witness was closely cross-examined by Mr. Pollock as to the accounts.
Mr. Pollock, in his address on behalf of plaintiff, said it seemed almost altogether in- explicable how, if this alleged agreement really existed; defendants did not set it out in the correspondence, and he asked the jury to draw the inference that this alleged agreement was an afterthought. Then if this agreement existed why was it not set out in the first answer filed by defendant Chater. Simply and solely because he had never heard of such a thing, because it was a new idea, an idea invented by men who found themselves in a desperate straight Dealing with the question of the stated and settled accounts, Mr. Pollock argued that the dates dealing with them in the ameuded answer did not correspond with the dates and states ments contained in the original answer of de- fendant Chater. The jury would find in the amended answer two entirely different dates. They had in fact in the amended answer a de. parture from the original answer, the object being to endeavour, as he had before submitted, to bolster up a weak case. It seemed obvions that defendant or his legal advisers must have considered that these statements of account mentioned in the original answer of defendant Chater were not proof enough and therefore they endeavoured to introduce two separate statement of accounts. one on the 30th June, 1887, and the other 30th Sept., 1887, about which not one single word had been put in the original answer filed by defendant Chater. When the jury came to consider the evidence they would see that so far from strengthening the case of the other side the new mutter weakened it. As to the evidence furnished by the other side with regard to the alleged statement of accounts for the 30th June, 1887, defendants based their allegations under two heads-first of all they relied upon the document put in called exbibit A and secondly they relied upon the alleged fact of their having sent brokers uotes and vouchers to Hughes. Taking the second point first. what evidence had they upon that point? They had no evid euce whatever that any brokers' notes of any kind were seul to Hughes They had two brokers' notes produced by the other side, and the fair inference from these two brokers' notes being in the possession of Chater and Mody was that other brokers' notes remained in their pos- session. Mr. Hughes would tell them most em- phatically that the true state of affairs was that the 4,25 Punjoms and the 735 Kowloons were to be carried for him and not to be sold, and in connection with this matter he would ask them to carefully consider the statement of Punjom shares. They saw it was absolutely necessary for Chater and Mody in attempting to set up this sale, instead of carrying these shares, to show that on June 30th, 1887, they had 4,250 Punjoms and 735 Kowloons, and that after that date the number became less and less. Mr. Pollock contended that the only evidence as to the sale of the shares brought forward by the other side was that of Mr. Mody. Mr. Chater's evid. ence on the point being merely bearsay, and he further contended that Mr. Mody's evidence was inconsistent with what was said by Mr. Chater and what was said by his learned friend Mr. Francis.
The further hearing was adjourned until ten o'clock the following morning.
16th May.
Mr. Pollock concluded his address or behalf of plaintiff.
Plaintiff then gave evidence. He said he first started business in Hongkong is 1864 and continued to do business in Hongkong up to the first of January. 1887, when he gave up all business and transferred the management of his own business, including the management of the Wanchai Godowns, to his brother Jones Hughes. The capital of the Hongkong and Kow- loon Wharf and GodownCompany was $1,700,600, He was one of the vendors and got 1,147 shares and between $1,500 and $1,600 in cash. He deposited 147 of these shares as security with Mr. Chatur for some money lent him, and the
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Witness-The arrangement was. that I was tosell these shares and I was to hand to them the securities, they to fulfil all my contracts and carry the surplus shares, charging me
seven per cent. interest.
Mr. Pollock-Was it part of the agreement that they should be at liberty to sell or dispose or make use of those taken up by them for you until redemption or to in any way deal with such shares for their own use and profit?
Witness-No.
Mr. Pollock-What about this red ink state- ment, can you remember when it was made out? Witness-I think it was made out very shortly after Mr. Chater asked me to make out a statement.
Mr. Pollock-About what date would that be?
Witness-About the end of May, I should
think.
Mr. Pollock-Now at the end of the month you gave a promissory note for $30,000, Was that promissory note given for a fixed and definite amount, or simply an estimated amount due on that date ?
Witness-It was given as an estimated amount, and, as Mr. Mody informed me purely a matter of form.
Mr. Pollock-Did Mr. Mody tell you why he wanted that note?
Witness-He said it would be necessary to show to Sassoon that they had a lien on my sugar shares,
Mr. Pollook-Your sugar shares were in the | hands of Sassoon ?
Witness-Yes.
Mr. Pollock-At the time you gave the promissory note for $30,000 or about that time did you see any statement of account with reference to the 4,350 Punjums and the 735 Kowloons.
CHINA OVERLAND TRADE REPORT.
remaining 1,000 were delivered to witness and It was not true that the agreement to finance deposited in the Hongkong and Shanghai Bank. him was not entered into until June, These During April, 1887, he began to speculate in sales were in part fulfilment of the agreement. Kowloons, buying largely forward for the end Mr. Pollock-What was the arrangement of June and the end of September. He bought come to between you and them with regard to about 5,000 Kowloons forward for the end of their carrying through the June and Septem- June and about 2,000 for the end of September. | ber settlements ? He also sold some shares forward for June and September, but his purchases were much greater than his sales. The book produced showed all his forward purchases and sales for June and September, 1887. It was in the handwriting of his clerk Appenes. He began to purchase on the 18th of March. Witness detailed his pur. chases for Juue and September, 1887. Mr. E. L. Woodio agreed to take up 1,000 of these shares, but he only took up 500, as he thought the shares were going to have a considerable drop. Mr. Woodin suid his reason for thinking this was that there Was #1 cer- tain influence in the market which would cause a fall. Mr. Woodin further said he had heard that Mr. Mody had been de- nouncing the speculations, and that Mr. Mody had told him he could get the shares cheaper. A few days after this conversation he got the letter produced from the manager of the Houg. kong and Shanghai Bank stating that he could not pay his cheque for $70,000. This letter was dated April 27th, 1887. It occurred to him on the 24th or 25th April that he was cornered in connection with these shares and that he might have some difficulty in clearing. On looking up his contracts be found that Mr. Mody had sold him four-fifths of his pur- chases forward in Kowloons and about 'oue-half of his purchases in Punjoins for June and September. He endeavoured to sell with a broker, but was not successful, the man who took up a few for December absconding. After considering the matter he thought the best way for him was to approach the principal seller, Mody, with a view to his taking back a portien of the contract at a fair reduction before the market had declined materially. This Mr. Mody declined to do, saying that the contracts would have to take their course. He urged Mr. Mody to take them-to take them at a reduction or finance them--and ultimately Mr. Mody suggested that he should go and see Chater. This conversation took place on the 29th or 30th April or the 1st or 2nd May- -some- where about that period. Two or three days after wards witness went up to a big tiffin at Mr. Chater's. He remembered it because he felt dis- Consolate and miserable and all the others were en- joying themselves. On the way down from tiffiu he broached the subject to Mr. Chater. He told him he would not be able to take all bis shares up, that Mody had referred him to him, and would be assist him. Mr. Chater asked him what be was prepared to give in the shape of security, and also asked him to let him have a list and that Mr. Pollock-Lid you ever agreo to sell these be would talk to Mody about the matter. He had| 4,350 Punjoms at 12 and these 735 Kowlcons at no recollection of any further communication | 130? with Mr. Chater on the subject. Mr. Mody met him in the street two or three days afterwards-then. early in May-and referred to his contracts,. saying they were willing to take up his contracts provided he would sell 1,000 or 1,500, as the amount was too heavy for them to finance without outside assistance. Mr. Mody further said perhaps they would be able to get D. E. Sassoon to take some quietly in the market. Witness, continuing, said he began to feel ill This was agreed to, and he considered that at the latter end of July, 1887, and laid up Messrs. Chater and Mody were to take the about the fourth or fifth August. He was bed. surplus. Later Mr. Mody came to him-met ridden until the Jubilee time-towards the end him in the street-and asked him to change of the year. He was wheeled near the window, and to sell a thousand of each for each date, and that was all be saw of the Jubilee. He was He agreed to this. Then Mr. Mody told him it living at Wyndham street at the time-near would be more convenient to them to have these the site of the Roman Catholic chapel. From 4,000 shares cleared for the 30th of June. the begining of 1888 to the beginning of March The next move was when Benjamin came to he was still very weak and did not attend to | him and said 1,000 Kowloous had been arranged business: He believed he was suffering from for with David E. Sassoon. His clerk made an rheumatic fever and gont. He never received entry in the contract book to that effect. any brokers' notes or accounts of the June Benjamin did not bring any contract note for settlement from Chater and Mody; neither these 1,000 shares but stated that 1,000 more had were any accounts sent to him for the 30th Sep- been arranged or were about to be arranged for tember settlement He was very ill at the Juue, as he understood, with Sassoon. Ben- time. The first account he received before he jamin next brought him a contract for 2.075 left the colony was dated 15th of March, and shares with Mody as the buyer. He mentioned he received it about that time. He was still casually that it was arranged for 2,000 only very weak but was picking up, having dispensed and Benjamin said it was 2,075. His clerk with crutches. He went to the racen twice, altered the 1,000 in his contract book and having one crutch with him, but he did no bet- finally made it into 2,075. These alterating. When he got these accounts he glanced tions appeared in his contract book. He heard over them and noticed they were only made out Mr. Mody and Mr. Chater give their evidence to December 31st, and he sent the socount back
Witness-I did.
Mr. Pollock-In that account were they put down as carried or sold?
Witness-They were put down as carried and Mr. Mody explained that they were carried.
Mr. Pollock-Did you ever receive from Mr. Chater or Mr. Mody, or from anyone on their behalf, any account in which the word carried when applied to these shares had been altered into sold. Witness-No.
Witness-I never dreamt of selling them
Mr. Pollock-Why do you say you never dreamt of selling them?
Witness-Because I was making other arrangements-giving them every security available to enable me to be able to hold them,”