November 4, 1905.]
His Lordship-What fact is there which eridences the suspension of payment?
Mr. Goldring asked for an adjournment to enable him to produce evidence, which his Lordship granted.
THE WAI YUEN CO. EXPARTE THE DEBTOR,
Mr. G. H. Wakeman, Official Receiver, made an application for the forfeiture of the sum of $3,000, deposited as security for Sui Wai Chu, one of the partners of the bankrupt firm. this partner had absconded, Mr. Wakeman asked that the amount be forfeited for the benefit of the creditors.
As
Mr. C. F. Dixon (of Mr. John Hastings office) appeared on behalf of the sureties. He was prepared to admit that the partner absconded immediately after the bail had been put up, and was at preseut in Canton. He was instructed to lay before his Lordship a certi ficate as to the ill-health of Sui Wai Chu, which was signed by a German doctor in Canton.
His Lordship. When were the meetings of creditors?
Mr. Dixon-They took place some time pre- rious to the signing of the petition,
His Lordship-Had this certificate been produced at the time of the meetings, it would have been a different matter.
Mr. Wakeman-The man was not ill at that
CHINA OVERLAND TRADE REPORT.
CHOY CHUNG LI EXPARTE LO TOI CHAN.
Mr. G. H. Wakeman, Official Receiver, publicly examined the debtor.
r. C. F. ixon (of Mr. Hastings' office, and Mr. E. A. Bonner (of Messrs. Dennys and Bowley) appeared for creditors.
creditors, as shown in his statement of affairs, Choy Chung Li said his debts to unsecured
am unted to 861.711, while his assets stood at $37,000. He had no business now, but about Mossrs. Meyerink and Co. All his debts were two years ago was assistant compradore to for money advanced to him on no security except promissory notes. One amount of $10,000 borrowed, he agreed to re-pay out of his father's estate. He never paid interest on the amounts he borrowed, and first began to borrow in 1902, fle did not keep any books.
His Lordship-Was the money borrowed for the purpose of this compradore business?
Debtor- Yes.
Mr. Wakeman-This $61,000 odd was bor- rowed in 1904. He says be has not been doing business for two years.
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You are to share that property with your six brothers, are you not? -No.
Is not your mother at the present time allowing you $400 a month ?--No.
And has she not promised you that if you will keep this property in China from your will give you $80,000?—I have not heard from creditors, when these proceedings are over she
my mother for a long time.
His Lordship-Answer the question. Debtor-No.
to your father in his lifetime ?-$10,000.
Mr. Wakeman-Did you advance any money Did
you get a promissory note for it?--Yes. Where is it? With the executrix of the estate.
And the money has not been repaid to you? -No.
Mr. Dixou-I have an application to ma' e under Section 120 of the Bankruptcy Ordinance before this examination closes, with reference to having the bankrupt re-arrested in order that he may give further security for his appearance at the next public examination. He failed to Debtor, continuing, said that when he was in appear at the first public examination; a warrant the employ of Messrs. Meyerink and Co. he bor-issued, and he was arrested. He was afterwards rowed money to pay back debts due to that firm. released on giving security in the sum of Mr. Wakeman-How is it you are respon. $5,000. I would now ask that this security be sible for these debts-One of the conditions of considerably increased, as the debtor is the son the agreement when I entered the firm was that of one of the wealthiest Chinese in Hongkong, and I think, if he were sent to prison, his cred- itors would be paid in full.
time, but his creditors have los considerably by I was responsible for all bad debts. his absence from the colony.
His Lordship granted the application.
WONG SAU PO AND ANOTHER EXPARTE
WONG CHUNG CI.
This was a public examination of the debtor by the Official Receiver.
Mr. H. J. Gedge and Mr. H. G. C. Bailey (of Messrs. Johnson, Stokes and Master) both appeared for creditors, the former for the Hongkong and Stanghai Bank and the latter for the Fuk On Insurance Company.
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Wong Sau Po said he was the manager of the Li Fung and Wing Sing Lung firms. The first firm was a bank and the second dea't in gold leaf. The business of the Li Fung started in March or April 1907. and that of the Wing Sing Lung in September 1902. The firms were combined; there was no agreement but there was a partnership book of both businesses, which was made since the starting of the Wing Sing Lung. The capital of the partnership was $1,000, In the first instance the partners agreed to take shares to the extent of $ 0,00, but they only took $3,000 worth, so that the actual capital received for the two businesses was $77.000. The accountant drew up the artuership book. Wong San Po was one of the promoters of the partnership. The account books were kept in a cockloft at the old shop, but he did not know where they were now. All the books except those in court were lost during the removal to new premises. When the partners subscribed their capital he gave them a receipt, but did not have a receipt himself. The bank was a paying concern, but the gold leaf business was not; it went down during the last few years on account of the Japanese war. They sold the gold leaf to various banks. The account book produced was made up each year to show the assets and liabilities of the part- nership. In 1901 the Li Fung made a pr fit of $1,717.69. In 1902 the businesses combined showed a profit of $23.155 for the year. In 19 3 they made a lóss of 831,664.96, and in 1904 a further loss of $21,400.30. After deducting profits the total loss made by the partnership was $28,192.58. The amount now due to de positors in the bank was $180,000. The liabili- ties of the two firms were $378,998.82 and the assets $248,15 33. Sive last Chinese New Year they had reduced their liabilities from $378,998.82 to $11,00. The book containing the balance sheets was four or five years old; it was not lost with the others, because it was kept in an iron safe. He left the Colony in January owing to illness. About that time Li Fung Man was pressing him for the payment of a debt. When he left the Colony he left the accountant in charge of the shops. He had no other property in Hongkong than that contain- od in his statement of affairs. H had some house property in Des Voeux Road last year which he sold to Wong Fuk Tsun for $80,000.
At this stage the examination was adjourned for a week.
What was the nature of these transactions you were responsible for ?-Piece goods and sugar sold to different firms which failed, and I had to pay.
His Lordship-I can only commit him if there is probable reas in for believing that he committed an offence. He did not fraudulent- remove his furniture from his house in Wyndham Street.
Is it not a fact that these were gamblingly transactions ?—No.
What consideration did you get for going security for the compradore?-I was to get half the compradore's commission.
Have you got the agreement you made with this compradore? Yes. It is in Mr. Almada's
office.
Who is Mr. Lau Ming Shek ?-He was a broker in the compradora's department of Messrs. Meyerink & Co.
Does he owe you any money?—No.
In your list of debts due you have got him down as owing $1,500?-He gave me a pro- missory note for that amount when I paid his debts.
Has he paid you any part of the $1,500 ?- Yes. I have received $300 on account.
Your stuement of affairs savs the whole amount, with the exception of $200, has been rep id-That is not so.
Was not this a gambling transaction ?-No. What amount of money have you speut during the last three years?-Between $170,000 and $180, 40.
What has become of all this money -I paid 86 4000 to Messrs. Meyerink and Co. aud $30.00 to my clansman by way of compensa- tion. We owned certain houses, and they had to be divided. I selected the bost of them, gave my clansman the rest and paid the difference in the value.
Was that clausman your brother-Yes. My elder brother.
Did you have a deed of partition ?—Yes. And paid you bro-lier $30,000 ?—Yes, because I got the better share.
Mr. Dixon-But he removed it to prevent his creditors getting it.
His Lordship-Last time I made an order auder this section there was no prosecution, as the Crown declined to prosecute; therefore I am in a peculiar difficulty. I am not going to make an order for his imprisonment merely as a means of squeezing money out of him, because the Bankruptcy Ordinance does not allow me to do that. I can make an order if there is probable reason to believe that an offence has been committed, and it seems to me that there was a probable removal of his furniture to Elgin Street. The whole question might be settled, and he might be released. Now, what do you
Will propose to do?
you undertake to prosecute? You see the position?
Mr. Dixon-I should like to, my Lord. I think it will be very unfortunate for the creditors if he is not required to give further security.
His Lordship-That is another matter. There is the imprisonment and arrest. Is be under security now?
Mr. Dixon-Only $5,000, my Lord.
His Lordship-What is the security for? Mr. Dixon-For him to appear at the public examination.
Mr. Wakeman-He came down from Canton and your Lordship made an order for $5,000- security,
His Lordship-What case can you advance for increasing the security?
Mr. Dixon-If we have him here and do not close the public examination, it is possible And how do you account for the rest of the that we will secure some of his property money-I paid off my own debts with it.
How did you manage to borrow all this money without security --Because my friends. trusted me.
in China. With a security of $5,000 he might abscond again.
His Lordship-He did not abscond. He has appeared as you see. I don't think he has done Then you hire been practically living on anything that will warrant my increasing the borrowed money for the last year or two?-Yes. security. I don't think you can say anything What were your expenses?-$300 a month more than you have, and I don't think I can family expenses in Hongkong besides house increase the security. The question is whether rents, and $200 a month for other things. II make an order for his arrest on a probable hare two wives living with my mother in Canton, and one here.
In your statement of affairs you say your ex. penditure for the last three years has been at the rate of $13,380 a year. That is so.
Is that correct ?—Yes.
Well where does the balance of your debts come in ?--I don't know.
Isn't it a fact that you have been leading a most extravagant life for several years ?—No.
Did you not receive considerable sums of money from your mother in Cauton ?-No.
Debtor was next examined by Mr. Dixon. What was the value of your father's property in China at the time of his death -I don't know.
offence.
Mr. Bonner-I should like to ask the debtor a few questions, my Lord, before the examina. tion closes.
Permission be'ng granted, Mr. Bonner proceeded.
When the mortgage to Tam Kin was com. pleted, is it not a fact that you then said you bad mortgaged your property in Canton?-No.
Have you given any mortgage over your property in Canton P-I have not.
Is it not a fact that a Mr. Leung Hing Wai was present when your mother offered to pay you $400 a month to give up your sbarə?--No. If he goes in the box and swears it, will you deny it -Certainly.