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THE HONGKONG WEEKLY PRESS AND
(May 19, 1906.
| ing away on a bill. Years ago Singapore ; You are not entitled to my that to me.” I mw passed the second reading of bill. | his name on the register, and the register if the
and then it died a natural death. At pressat notios to the world that the man in a
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a bill has passed its second reading there. This | By such legislation you would · ́absolutely bill is of a most drastic nature; it compels the destroy the principle of the universálly registration of a'l firms every twelve months, sleeping partner, you would dislocate the law and altogether it appears to me to be of such a of partnership in this Colony. It would be nature that it can only suffer the fate of its impossible to Introduce any such change with. predecessors. I merely refer to these points as I out creating great hardships and there would think it is as well to point out how very great be no compensating advantages. I don't propões the difficulties are, and how very caution ly we to go into detail to show how impracticable and should proceed to deal with the question. These impossible such legislation would be. The hon. remarks are only made to support my earlier member opposite recalls that this has been die- remarks; that is, that I cannot see that the cussed years ago. I myself sat on a committee, Council will gain anything by accepting this and after considering the question in all its motion. I trust that the proposer and secon ler aspects I think the opinion was unanimoni that will be satisfied with the discussion, and that they nothing effective could be done. I agree with will not endeavour to press their motion to a the hon. me aber representing the Chamber of division. 1 also express the hope that liter on Commerce that the only way to deal with this a draft bill will be before the Council which question is in the shape of a bill. If the hon. can be carefully considered, amended or rejected member on my left will bring forward a as the full consideration of the Council con- practicable scheme in the shape of a bill let siders. I can only say in conclusion that the uim do it, and I will welcome it and assist him Chamber of Commerce will gladly welcome any is every way I can. I read carefully the proposed form of registration which points reports to which my friend refers, and among to a possible and satisfactory settlement them a letter by Mr. Hillier, a former Queen's of a very difficult question, and speaking on Counsel in this Colony. I commend the behalf of the Committee of that Chamber I can arguments of that gentleman to the attention only assure your Excellency and hon. members of my friend when he is drafting this bill for who brought forward the motion that it will the registration of partners. receive every possible assistance from the Chamber of Commerce.
The Hon. Mr. POLLOCK—I have seen it, The ATTOкney GENERAL~[ trust шу friend will be guided by it. My view is that this Council, this Government, should not pledge itself to any legislation the effect of which it does not know.
extend only to Chinese firms. Taking the motion as it stands, it most clearly referred to all per sons doing business in the Colony. Supposing the matter of the registration of partners was accepted and became law, the object would be that we would be asking British and other firias trading in the Colony to conform with certain in- quisitorial regulations which are not enforced in other parts of the British Empire. On the other hand if they are to apply to Chinese firms only, it would be a departure from that broad-minded | liberal policy by which all British Colonies are governed, namely, that except for some very special reasons no distinction is made by the law of any class or nationality, a policy the wisdom of which is demonstrated by the prosperity of our Colony. That is one of the points that occurred to
me while listening to the speeches of hon. members. It appears to me that not only is nothing to be gained by agreeing to this motion, but also that not much is to be gained by a detailed discussion on the question. Both hon. members, more particularly the seconder, went into a good deal of detail | and referred to the difficulty lying before us, and that being so it is only right for me to refer to some of the main facts as they occurred to me, speaking entirely as a com. mercial and not as a legal mau. The hon. proposer of the motion spoke of Chinese law as it oblains in China, and I think remarks on the same subject were also made use of by the seconder. I do not know whether it is law ia The ATTORNEY GENERAL-It is impossible, China, but certainly it is custom in the take it, for this Council to pledge itself to Southern Provinces of China, and I am told anything in the shape of legislation by accept a very satisfactory custom in working, that no ing a resolution such as this, because whether partner in a Chinese firm is liable for more the legislation is for the purpose of making the The Hon. Mr. POLLOCK-I have listened with than his proportion of the debt. He may be the registration of Chinese partnerships com- very great interest to the observations of the most wealthy member but the smallest share-pulsory-and any legislation that is not hon. member who seconded, a id also the hon. holder, but in the event of the firm becoming compulsory cannot possibly be effective member representing the Châu ber of Commerce bankrupt he only pays his proportion of the whether any such legislation is desirable or and the Attorney General. As I said when I debt on the proportion of capital he holds. That not depends altogether upon the objects that made my opening speech, my object was to we have understood for some time past is the legislation has in view and the means the measure invite discussion. I think hoi, members will form of registration among the Chinese, and it would adopt to give effect to them. Now, what agree that that object has at all events would be accepted by them here. In fact, as your would be the object of registering partnerships? been partially attained, although no doubt Excellency is aware, this is not a new question. There can only be one or two, One to protect there will be more said on this impor'ant sub- When forwarding a petition from the Chinese the creditor as against the debtor, or to protect, ject. If there had been a bill drafied, the first merchants asking for registration of partners as my learned friend opposite s'emed to think body to whom I would have sent a copy would Sir Cecil Cleminti Smith, the Registrar could be done, the debtor against the creditor. have been to the Chamber of Commerce, which General, in his letter to the Colonial Secretary He suggests that the law of China be intro- the Hon. Mr. Hewett represen's, but it seemed dated 28th August, 1874, distinctly lays down duced into a British mercantile community such to me desirable to ascertain th› opinion of the that the petition forwarded to the Government as this, by which apparently the persons who Council upɔn this subject. I am glad to learn is based on that ides that partners are only ought to be liable, the persons in faith of whose from what fell from the lips of the hon. liable for the actual proportion of debt based on names credit is given to the firm, are acording member who represents the Chamber of Com- their share in the firm. The hon. and learned to that law only liable to the extent of the pro-merce that he was in agreement with the views member who proposed the motion spoke of the portion of the interest which they possess in reluctance of the Chinese to register in the firm. I take it that it would be difficult for | Hongkong. It has been my business to con- the hon. members to persuade anybody that it sider the question, and I have naturally made was desirable for a British mercantile com. inquiries among many classes and conditions munity to substitute any such law as that for of people in the place, and understand generally the law already in existence. It would be im. from leading Chinese merchants that what the possible. The object of any such legislation Chinese are afraid of is the unlimited liabilities must be either to protect the creditor or to give they incur if they own to being partners in a certain protection to the debtor. We can free a Chinese firm under British law. A Chinese the person of the debtor to some extent, but we merchant, doing business, say, in Canton, cannot protect the debtor against the credi will have no particular difficulty in find. tor. It is the creditor who requires protec- ing out who are partners of a firm, whereas tion against the debtor. There is a certain they do experience that difficulty in Hongkong, kind of protection which my learned friend the reason being that people register names of appears to have overlooked when considering men of straw or record "tong names because this question. By the law of England there is they are afraid of the bankruptoy law as it now such a thing as limiting partnerships. There is exists. It is very probable, as the proposer was no Act of Parliament expressly limiting part. siging, that the only solution of the difficult ques-nerships, but there has grown up a custom based tion is to be found in limiting the liability of on the decisions of judges that partners are Chinese firms according to the Chinese Customs limited in their liability. There are such things that now obtain on the mainland. As we know, as sleeping partners. If any legislation that is and I speak now from nearly 30 years personal brought forward to protect the debtor proceeds experience, the average Chinese merchant is an blindfold there is the greatest possible danger honest upright man and willing in fair weather of doing wrong to the large body of persons or foul to discharge his liabilities, and I believe known as sleeping partnera. I venture to say if some satisfactory solution could be come there is hardly a business firm in Hongkong that to it will decrease the cases of fraudulent does not pay out of its profits sums of money bankrupts absolutely avoiding their liability by to widows and orphans and other persons who disappearing on the mainland. On finding having at one time taken an active interest in exactly how the law stands, honest merchants the firm havə now retired therefrom and whose in Hongkong, even during a crisis, will assist names no longer appear quo ad third person' creditors in recovering debts and discovering but as former partners. This is one of the absconding debtors though they may have things well known in selling goodwill. A shifted to China. As we know; difficulties partner retires, but instead of taking a lump against solving this complex question have sum paid down to him he takes a certain amount occurred in the Straits Settlements and also in annually. He has no further liability for India. I believe I am correof is stating that results, but if you require that partnerships | the latest heard from the Bombay Presidency | should be registered, it means that this mẫn is that the Bombay Chamber of Commerce will also have to be registered. His name will will-
have nothing to do with the appear on the register and if he is made llable all, while in Bengal they are someone might say –You knew he was a sloop- Hale more hopeful and are still work- ing partner !" And the answer to that would be--
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held by the senior me nber representing the Chinese and myself that if such a messure could ho devised it would be a very good thing. I accept the views of Mr. Howetl and the Attorney General that it would not be advantageous to proceed farther with this motion, and that being so, with your Excellency's permission, I will withdraw it. I am glad to know that any bill which the hon. member opposite may draw up will receive his attention." I beg to withdraw the motion.
The Hon. Dr. Ho KAI consenting, the motion was withdrawn.
The ATTORNEY GENERAL-If the hon. member should submit a draft bill to the Government, it would be referred to the Cham- ber of Commerce, to which, on such matters, the Government is always largely indebted.
QUESTIONS. The Hon. Mr. POLLOCK asked the following questions, one being pro Mr. G. Stewart :-
1.
Have the experiments in wood-paving proved sufficiently satisfactory to warrant an extension of this method of road-making being taken into consideration.
2. With reference to the leading article which appeared in the South-China Morning Post of the 19th April, 1996, will the Govern- ment state why the notification as to dead rate therein referred to was not promptly sitended to by the Sanitary Authorities, and will the Government also state what steps are being tsken to prevent the recurrence of such delays in future?
3. Will the Governmmt consider advisability of granting to those Ģiril Bervants who are drawing their pay on a sterling basis the privilege of drawing half of their pay at the rate of la. 8d. to the dollar, or will, the Government grant some other relief by way of compensation to such Civil Servnuts?
The Colonial Skonntány, in reply to No. said-Though the experiments have not extend-