Page
July 11, 1904.j
that he executed any document whereby he be came a partner." It must be borne in mind that the witnesses mentioned deposited money with the Bank on the faith of these statements or admissions; and, therefore, they cannot well be mistaken. Unless they are wilfully giving false evidence it seems to me clear that Lo Yuk Shang held himself out to be a partner and did his best to get people to deposit in the Bank. I am aware that he denies the statements of these witnesses and indeed actually went so far as to state in the witness box, I have never recommended the Bank to anyone." Yet he admits he did a business of between $150,000 and $160,000 a year with the Bank, that he was allowed to overdraw, and while so many creditors were losers when the Bank failed, he was on the right side and owed the Bank $3,000, which he states he has paid since 6th March.
When he wanted to make out he had no means he stated that all he had was the share of $1,000 in the Po Tai Wo, that was all he had in the world. In answer to the Court he said I am worth a little more than $1,000, and no more, assuming I pay what I owe and am paid what is due to me."
**
certain
he WES
When the Court next met and he was cross- examined by Mr. Hastings A8 to transactions, he admitted worth over $10,000 adding "If people pay me
and business is all right I may be worth $50,000. When I have to choose between his denials and the statements of the four or five witnesses as to what he said. I decide in favour of the majority. They are interested, but so is he, and their interests are certainly no greater than his, and they gave their evidence clearly
and well.
Now as regards Kwong King Tong. Wong Yut Man deposed that Kwong King Tong told him he had a share in the Po Fan and asked him, if he had any money, to patronise the Bank and also told him. after the suspension when he went to ascertain whether he would get paid. We are only making up the accounts. You need not be afraid, people Lau Sing Kin owe us more than we owe." deposed that Kwong King Tong called at hs shop and told him he was a partuer and solicited custom for the Bank. On the other hand these statements are entirely denied by Kong King Tong, who states that it is true he was originally asked by Kwong Kam Nam to take shares. but he declined and, indeed, that he was only an accountant in the Kwong Wing Cheong shop at $12 a month, and that his estate was not worth, in the whole world, more than $300.
Here, therefore, we have two witnesses de- posing to his statements and his denial of having made them. There is, however, some corroboration of the witnesses, derivable from
the lists hereafter to be referred to.
As regards Kwong Yik Nam, who is a brother of Kwong Kam Nam (one of the managing partners), Li Chi deposed that Kwong Yik Nam called on him last year, talked about the Bank and told him he had started it, that it was a genuine Bank and that he had shares in it and induced witness to deposit in it, that he de- posited accordingly, and was now owed $1,650 by the Bank.
Tsui Pak Yu deposed that, when he went to the meeting of depositors at the Bank after the failure, he saw Kwong Yik Nam there in the capacity of one of the Bank people and not as & creditor.
L
Fan Yuk Tung deposed that on 14th March, 1903, he had a conversation with Kwong Yik Nam who stated he had a share in the Bank and said, speaking of himself and others, the Po Fung Bank is our business and asked witness to deal with the Bank which he did, with the result that it now owes his firm $5,000 and some $3,400 more to individual partners in his firm. He also speaks of Kwong Yik Nam having been present at meetings of the Bank after the failure, particularly on an occasion on 11th March, 1904, As regards Kwong Yik Nam's position when the Bank failed, it appears that he came out exactly right. He owed the Bank nothing and the bank owed him nothing, as he took out all his balance of $3,000 on 29th February, 1904. Besides denying the statements of the witnesses against him, he stated that he went to Canton by the night boat of 8th March, 1904, sud returned on 14th March. He did so he stated because of the illness of his wife and he took a doctor with him, whom he called to corroborate
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CHINA OVERLAND TRADE REPORT.
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his statement, and thus to show that he could His Lordship granted the application and not have been at the bank at meetings of de-appointed Mr. Bruce Shepherd Official Receiver.
PUBLIC EXAMINATION. positors between the night of the 8th and the 14th March. If this is true, either Fan Yuk Tung must ha e been mistaken as to the date of his seeing Kwong Yik Nam at the bank or his statement must be incorrect, for he said it was on 11th March, 1904.
I come now to the matter of certain lists of masters or shareholders in the Bank furnished by Cheung Kai Yu, one of the acknowledged managing partners. In those lists the names both of Kwong King Tong and Kwong Yik Nam appear. It is true that Lo Yuk Shang's name does not appear and that Cheung Kai Yn has deposed that Lo Yuk Shang is not a partner, but as Cheung Kai Yu stated that Lo Yuk Shang was a friend of his it was suggested he was trying to shield him. I do not say these lists are absolutely conclusive. Though I do not believe the statements of Cheong Kai Yu as to how he came to furnish them. I prefer to believe the statement of Mr. Tso. the solicitor to the statement of Cheong Kai Yu, especially as that was not the only list he furnished. But, when coupled with the evidence of the witnesses who stated that both Kwong King Tong and Kwong Yik Nam expressly told them they had shares in the Bank, those lists cannot be taken
as of no value, when they independently cor- roborate the statements of the witnessess.
Giving due weight to the evidence called to show that the three were not partners. some of which I have not specially referred to, and tak. ing into consideration the demeanour of the various witnesses. I have come to the conclusion that the fact of the omission of Lo Yuk Shang's name from the lists is more than counterbalanced by the evidence of the four or five witnesses who depose to his having himself told them he had shares in the Bank, and on the whole I find as a fact that all the three men were partners in the Bank and I find against them on the issue and they must pay the costs of it.
CIGAR MERCHANT'S BANKRUPTCY. Frederick Nolte, late of the Hotel America, came up
for public examination in bankruptcy, Examined by the Official Receiver, bankrupt stated that he first commenced business in the Colony in October last year, as a cigar mer. Before that he had been in the U.S. chant.
which he resigned Army Transport. from in February last year, and in October he commenced business as a cigar manufacturer, When he having a half-share in the business. he started business in Hongkong he had $6,043 worth of cigars here and $9,000 worth in Port On 1st of March he Arthur and Shanghai, bought the Hotel America for $11.015. He borrowed the money on the strength of the The cigars in Port Arthur cigars in stock. disappeared. His Shanghai agent, David Beer- bauld also disappeared. To buy the Hotel America witness borrowed $2,000 from his com- pradore. 83,000 on a promissory note from H. Price and Co., and $5,000 from a friend of his compradore's on a bill of sale payable after three At the expiry of that period they months. would not renew the bill of sale and forced him to sell Price & Co. bought the hotel for $16,000 Of that sum he spent $1,000 for rent and paid $15,000 to Mr. Brutton, who paid Price & Co. the balance due on their promissory notes and the bill of sale, etc., retained his costs amounting to $1,000.60, and paid to the Official Receiver $5,123. The Hotel America was paying when he had to sell it.
His Lordship-But were you not foolish to borrow this money for only three months?
Bankrupt said he had expected to get a renewal. He commenced manufacturing cigars in Hongkong on 10th February, but had not been able to make any clear profit yet. The appron- tices had to be trained by Filipinos. If he had a capital of $5,000 atpresent he could make a clear profit of $6,000 a year. His total indebtedness now was $17,100, of which $12,630 was money borrowed to extend bis business. He had no liabilities in Manila. On separation from his partner there the latter undertook to pay all the firm's debts.
After some further questions by Mr. C. E. H. Beavis (of Messrs. Wilkinson and Grist, solici- tors) who appeared on behalf of a creditor, the examination was closed.
Mr. G. K. Hall Brutton applied for an order of adjudication on the estate.
Chi Keng Wan, manager of the Tung Chan firm, came up for public examination in the bankruptcy proceedings brought by the Sui Kat bank.
Examined by the Official Receiver, the witness stated in the course of his evidence that he did not know who the partners in the firm were.
His
was Lordship said it
a Case of a firm cheating everybody all round, and then
How nobody knew who the partners were. much was the witness worth ? he asked.
Witness-I have no money. His Lordship remarked that that was the Where was the usual thing in such cases. money to come from to pay the debts of the
firm?
hinese
Mr. H. W. Looker (of Messrs. Deacon, Looker, and Deacon, solicitors), who appeared for the Chartered Bank, stated that a
had come: forward with an gentleman
pay offer to take over this business and cent, composition.
66 per
In reply to his Lordship. The fficial Receiver said the firm owed 8842.192 and there were $500,000 assets. There was about $400,000 worth of goods in the godowns Witness had been told to make up a statement. of affairs, but had not made up a full state- ment. He had gone off to Canton instead of staying here, and they had only got him back on the previous day.
His Lordship warned the manager that he did not believe he was speaking the truth and threatened to send him to gaol if he persi-ted in committing perjury.
Mr. P. W. Goldring, solicitor, of Mr. John Hastings's office, said he appeared for the debtors and represented this man, who was not a partner in the firm and had only come there to prove the statement of affairs.
His Lordship said that it was monstrous for the manager of a business to come there and tell th-m that he did not know who the partners
were.
Let them get the partnership book down and he would adjourn the case.
Mr. G. C. C. Master (of Messrs. Johnson. Stokes and Master, solicitors), stated that he re- presented the Hongkong and Shanghai Bank- ing Corporation. It appeared that there was an offer of composition.
His Lordship asked who was making the offer? Mr. J. Scott Harston (of Messrs. Ewens and Harston, solicitors), who appeared for a creditor. stated that there was a scheme on the file for a composition.
Mr. Goldring remarked that a Chinese Was coming forward with an offer to take over the goods and pay a composition of 66 per cent. which, he understood, prepared to accept.
the creditors were
Mr. Master added that if the scheme would not go through the creditors would be in a worse position, because among the goods was a large amount of sugar which was liable to spoil.
His Lordship remarked that a public ex- amination was held in order to find out the truth, but apparently they could not get it out of this man..
no
Witness further deposed that there was partner now alive. The firm had a capital of $40,000. He did not know the originator nor how long it had been in existence, but he had been manager for ten years. There had been a loss every year for several years on sugar.
The Official Receiver explained that on the statement of affairs put in by the manager, the gentleman who had come forward stood to lose $40,000. The creditors reserved the right to go to Java, where the firm also had property.
His Lordship said he did not want to stand in the way of a composition, and he would close He did not know whether the examination. they could call that a public examination or not, but it was the only examination they could
Ave.
Messrs. Levy Hermanos, of Paris, who have but recently opened a branch at Singapore, have just sold an enormous diamond of 112 carats to the Sultan of Deli, Sumatra. It is the celebrated stone known as the "Napoleon which was recently discovered at the Cape, and it is said to be entirely the largest gem of its kind in this part of the world.
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