October 20, 1906.]
CHINA OVERLAND trade Report.
great circle lines of disturbance appear to exist in part, but these are of much more ancient geologic date, and have not been much in evidence in recent disturbances.
THE LAW OF REGISTERED COMPANIES IN CHINA.
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(Daily Press, October 17th.) WHEN we quoted two or three days ago from outport contemporaries some rather strong strictures on the alleged negligence of the Hongkong Government to enforce its own laws relating to public companies, we did not expect that the Government would so speedily repudiate the charge by a pro. secution of the Shanghai Life Insurance Company. The matter we reproduced had been" standing in type" for some time, as often happens when there is pressure on a newspaper's space. Our contemporaries referred to various stipulations of the Constitution and Incorporation of Com- panies Ordinance, and explained how any slackness in enforcing their observance might conduce to fraud on the part of persons desiring to defraud the public. It is obvious that the complaint, even if based on grounds merely general and academic, is a just one, provided such slackness be proved to exist. We are advised, however, that the colonial Government is alive to its responsibilities, and we shall presently mention a case which goes to support this. No honest company or promoter of com- panies ein object to the most rigorous interpretation of the requirements of the Ordinance, and in cases where only technical breaches are committed, through careless- ness or ereu inadvertence, it is desirable that no mercy should be shown. To pay for mistakes is partly an excellent insurance against having to pay for things more serious. The requirement that every unit ed company shall keep a register of share holders, open to inspection by persons interested, is one of the most important, aud we believe occasions are not unheard of where in Hongkong and Shanghai this precaution has been of particular service to innocent investors.
violent shock as having a little past six in the afternoon struck the ship. On the 20th an earthquake was reported at Lima on the same line as Valparaiso but 21 degrees of latitude further north. On the 29th southern Peru was shaken, while on the 2nd September San Juan, (? Guatemala, 17 N. and also on the same line) also reported an earthquake. The early part of September was likewise marked by dis- turbances on this girdle, Valparaiso being again shaken on the 2nd, and on the 24th Siccawei again reported a shock. Nor was the Himalaya girdle altogether omitted, for on August 19th we find seismic disturbances making themselves felt at the unfortunate island of Martinique, while in south Italy we again hear of shocks in the first week of September.. The latter portion of the year is, however, not so prolific in seismic disturbances as the first half; and more especially is this the case when they have rather to be classed as reflected, the main source of the earthquakes of the year having unquestionably to be placed in the Pacific girdle. Nearly one half of this girdle really is submarine, and even here it includes several well known groups of volenie islands. It is interesting notwithstanding to trace its general course. Leaving the South American coast somewhat about the mouth of the great La Plata, it passes close to South Georgia and the Sandwich group in the south Atlantic; thence by Bouvet I. it proceeds to Crozet, Kergueleu, and skirts the Amsterdam group, all of which are known to be volcanic. The next land it meets is Cocos, and from that it proceeds to Sumatra, where in the midst of volcanoes it crosses the Equator. None of these lands are inhabited, and are practically unexplor- ed. The seas are moreover since trade has made a highway of the Red Sea, seldom visited by ships; and the southern part of the Indian Ocean is of late years almost deserted: Recent surveys have shown that Juuch of the great circle line is marked by a series of shallow soundings, and that here as above water it marks a decided ridge. Unless an earthquake of sufficient intensity occur to be caught on the very distant seismographic instruments already existing in these southern regions, it is very unlikely that any other notice will be had of earth quakes or eruptions in these deserted regions; so that their not having been recorded is no evidence of their non- recurrence. Even in so often traversed a sea as that between Hongkong and Cebu, a serious volcanic disturbance may take place without leaving its record at the neighboring observatories. In February last the 8.S. Lothian after her arrival at New York, reported that on her voyage she in this locality passed through fifty miles of boiling water, and that during the strange pissage the ship shook from stem to stern, as if she had an ague". This, we may remark, was on this self-same Pacific Girdle. Not very long ago a similar experience was noticed 10 the neighbourhood of the Aleutians in the extreme northerly extension of the great circle.
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was quite unintentional. to comply with the law ", Mr. STEPHENS They intended
said, "and were at the present moment using their best endeavours to obtain the requisite information from Shanghai. His clients were American subjects, and were not aware that this statement was necessary,. their solicitor in Shanghai not having advised them at the time of the formation of the company, which had been registered only a little over a year ".
The CROWN SOLICITOR pointed out that the defendants were liable under the Ordinance to a penalty of 8559, but as they were taking steps to rectify the matter, he did not press for a heavy fine. If the law were not complied with as soon as possible, a further summons could be taken out. In view of this lenient attitude of the prosecution, His Worship considered that a fine of $25 would meet the justice of the case, and he so decided.
Our Hankow contemporary states that at present it knows that many registered companies have gone on working for years without giving any returns of their doings to the Registrar. We fell sure that there is some mistake as to that, as this prosecution of the Shanghai Life Insurance Company is by no means the first demonstration of the Registrar's vigilance. We hope that the prominence we have here given to his latest prosecution will he'p to restore that confidence which registration at Hongkong was intended to encourage. Wherever a shareholder has cause to suspect that all is not as it should be, we fancy that any suggestion would receive adequate and prompt official attentiou.
STATE INSURANCE SCHEMES.
(Daily Press, October 18th.) Although nothing momentous is l kly to happen as a result of it, a recent article in the Financial Review of Reviews seems to be giving rise to a good deal of di casston. Suggestions for state-owned this and state, managed that are by no means rare, and the neighbouring country of Japan is taking a le.ding part in such experim⚫nts, with Another requirement specially mentioned results which have as yet scarcely had time is that " every Insurance Company, etc., to show themselves. Some say the state shall, before it commences business, and on enterprises are doing well; others aver the the first Monday in February and the first contrary. For a long time the British Post Monday in August of every year, make a Office was the pet object lesson of state social. statement of its business, etc ". Theists, but they are probably now a little tired allegation was made at Haukow that in such matters the Government has not appointed an efficient staff to see that the Ordinance is carried out, to enforce the penalties, and to " give good publicity to the outports that such has been done". We regret that owing to a misunderstanding we have allowed the Government to rest under this imputation two or three days longer than we should have done; and we refer to the matter here with the object of according the "good publicity" desired by the outports.
of it. There is something more fascinating about the suggestion in the article cited above, which is nothing more or less than that all insurance companies should be merged under state muagement. Here also Japan has practically gone furtzer than any other country, although it has as yet refrained from putting insurance on a fooing with tobacco and railways. The author of the litest suggestion has midy arguments for it, but his trump card is undoubtedly the addition of about twelve millions to the natioual revenu '.
He is one Haukow and other outports may take of those who share the mild man of what follows, we think, as evidence that desiring to extinguish the National Debt, the Government is not neglecting the but if we do not all agree with bun, he is Returning to Porfessor Milne's chart in the responsibilities it has assumed. On Thurs prepared to allow us to apply insurance Illustrated London News", we may notice day, the 11th instant, Mr. GoMPERTZ had profits in other ways, one bait held out that the line marked as Libby's Circle", before him a case in which the REGISTRAY | bing a possible substantial reduction of the while it is correct as far as it passes through of Companies proceeded against th-income tax. First of all he dwells on the the land to the north of the Equator, fails Shanghai Life Insurance Company for amazing profitableness of insurance, and in its southern section beneath the South neglecting to file a statement as required quotes an eminent actuarial authority to the Pacific. To account for earthquakes in the under Form D, Section 103, of the Com-effect that nothing in the commercial world Tonga archipelago, it makes the line descend panies Ordinance. The prosecution was equals or even approaches the security of a only to 20 S.L. The line should, of course, conducted by Mr. F. B. L. BowLEY, Crown well-established insurance office. According have descended to about 43 8.L. and this Solicitor, and the Company was legally to the last anuual return of Life Assurance would have brought it through New represented by Mr. M. J. D. STEPHENS. business, issued by Government, there was a Zealand, as well as Queensland, which | The defendants' advocate, according to retura of over a million on a capital outlay Professor Milne himself marks as a region our reporter's account of the proceedings, of about fourteen millions, say something subject to disturbance. One or two other admitted the neglect, and pleaded that it over seven per cent. “The figure is a very