Page
November 14, 1908.]
SUPREME COURT.
Tuesday, November 10th.
IN ORIGINAL JURISDICTION.
BEFORE H 8 HONOUR SIR FRANCIS PIGGOTT (Chief JusticE).
MOTION FOR REDUCTION OF SPITAL In the matter of William Powell, Ld., and in the matter of the Companies Ordinance
of 1865.
Hon. Mr. H. E. Pollock, K. C., instructed by Mr. M. J. D. Stephens, appeared on behalf of the applicants.
In the petition it was
stated that the original capital of William Powell, Ld., was $120,000 divided into 1.200 abares of $10 ach. By special resolution made at an extraordinary general meeting held on Jane 6th, 1905, the capital was increased by the creation of 3,000 new shares of $10 each. The Company had issued the whole of its shares, and the zum of $10 par share had been fully paid up thereon. At an extraordinary general meeting of the Company held on August 28th, 1905, it was resolved that the capital of the Company be reduced from $150,000 to $105,000 by reducing the par value of the sbares from $10 to $7 each." The reason for this reduction of the capital was that $45,000 out of the capi al had been lost by reason of depreciation of stock, and wis unrepresented by available assets. The redac tion of capit I did not involve either the diminution of any liability in respect of unpsid capital or the repayment to any shareholder of any paid-up capital.
CHINA OVERLAND TRADE REPORT.
must be some relation between the cause of the petition and the petition itself. You cannot merely reduce the capital of a company because business has been bal.
Mr. Pellook--The capital of a company in s business Buse won'd be the stock.
His Lordship-Tae ospital is fully paid up It seems to me it would be just as reasonable to, annihilate altogether the ospital.
It is
Mr. Pellock-You couldn't do that. simply a question of liabilities and assets.
His Lordship-You cannot say the capital of a company must be represented b‹ 'its stock. A man with a capital of 815 1,00) may have $300,0 0, worth of stock if he has a very flourishing concern. You wouldn't Ben increase your ospital. Then, sopposing the stock has diminished, why reluce the capital? It must not be imagined that the redaction of the ospital. is a sort of formality that must be gone through;
he Court has got to sauction it.
Mr. Pollock-I quite appreciate that, my Lord.
Mr. Hinds was sent for, and on arrival his Lordship asked him's this stock, which you are advertising for sale, o'd stock in which the capital of the Company was originally invested?
Mr. Hinds-A very large portion of it.
His Lordship Can you say approximately that that amount of bli stock ($45,000) in which you invested your original capital, is now on your hands?
Mr. Hinds - Yes.
His Lordship made the order applied for, and directed that notice should b advertised in different newspapers,
Wednesday, November 11th.
IN SUMM RY JURISDICTION.
BEFORE HIS HONOUR MR, H. H. J. GOMPERTZ (ACTING PUISNE JUDGE).
AN INFANT'S CLAIM
Action was brought by Tang Kwong Tsiu against Taug Kien Luog, partner in the Kwong Wab Lung, to recover $51.20, being as to $120 received by the defendant for the ass of plaintiff, and $31.90, interest for nine months at sight per cent per annum.
Mr. Pollock said his Lordship would bare gathered from the petition that there bad been a considerable depreciation of the stock of the Company, and evidence, which had been filed, showed that there was only one large creditor of the Company. When the parties concerned appeared before his Lordship last wark in cham. bers he directed that evidence should be produ- oed before the Court that that creditor con- sented to the reduction. That had been done, and his Lordship would find on the fila an affidavit by Mr. Hinde, Chairman of the Complaiutif, and Mr. C. B. Johnson (of Messrs pany and annexed to it the consent of that cre- ditor to the proposed red :ction. With reference to the form of order. Mr Pollock referred his Lordship to Palmer on Company Precedents. His Lordship-I must see that there is some relation between the amount proposed to be reduced and the stock.
Mr. Pollock-Your Lordship will find that in the affidavit of Mr. Eyre, which reads At the time when the said special resolution was passed the capital of the Company to the extent of at least $45,000 had been lost or was unrepresented by available assets owing to depreciation of the stock of the Company."
His Lordship-I thought it was suggested that this stock was old stook in which the ospital had been originally invested.
Mr. Pollock-Yes, my Lord. Apart from the reduation your Lordship will see that we should have to put on one side of the statement of assets and liabilities capital $154,000 while on the other side, to balance that, we only have stook equivalent to $105,000,
His Lordship-The amount of the stock may have been bought out of profits. The stock in hand may have been added to and be recorded as the proceeds of the profits. I don't s-e any relation between that add the orginal capital. The fact that there has been unprofitable} trading does not necessarily mean a reduction of capital.
4
Mr. Otto Kong Sing appeared for the
Denuys and Bowley) for the defendant.
Was
|
Mr. Koug Sing said this action was brought by an infiut. It appeared that on November 25th, 197, the plaintiff's father, who resides in California, seut a letter containing 8520 to tho defendant or his firm with instructions to pay this money over to the plaintiff. Some little time elapsed before the plaintiff had any knowledge of this money having beu sent. Subsequently be applied for it, aut put off. Th-o the plaintiff wrote to his father, and received a letter cofirming the statement that the money had been sent. Then a letter of demand was written by Mr. Kong - Sing on behalf of the plaintiff to the defendants, and the defendants replied through their solicitors intimating that the mousy and a letter had been received, and that they had paid it to the person to whom it was mads payable in the leiter.
His Lordship-Does the father California?
Mr. Koag Sing - Yes.
live in
The money
His Lordship Can you sue? Me. Kong ing-I think 80. was sent to the boy, and surely he can sue if it was his money. There is nothing to prevent him suing in the Summary Court.
His Lordship-There is a contract between A and B for miney to be paid to C. C caunot sue in the ordinary way, can be?
Mr. Kong Sing-Bat the money is the plaintiff's.
Mr. Pollock-Supposing there was any profit on the working account, that would be divide I in dividends. Although this Company His Lordship-All right, we'll go on with has not been so fortunate as to pay dividends the case. I merely threw out a suggestion lately, it has in the past, and your Lordship Plaintiff was then called, and deposed to knows that dividends would only be payable out | receiving the following letter from his father of the profits.
"This writing is to inform you that I anxious- His Lordship-I don't think because they hope that you, my 800, with the help tradings have be a unprofitable and the stock has of God, and in good health at how and been reduced, that they should reduce the capital. that all abers of the family, old and If you can tell me that this stock is part of the young, are happy and healthy. This is original stock in which the capital was what I earnestly hope. Now, I am enjoying {originally invested, then I am satisfied. There the best of health abroad, and you need not be
351
anxious about me on seeing this writing. In the second decade of the 10th moon I sent you through the Kwong On Cheong the sum of 8520 at 7.2 which I expect you have daly receivad. I also ask Wong Hin Kwong to take to you the sum of $20. Please make in- quiry and collect it for use. On seeing this writing please note. Other things are not herein mentioned in detail, bat good news will be forwarded you in fature."
His Lordship was of opinion that the motion should have been brought by plaintiff's father.
Mr. Kong sing asked permission to join Yau Fu, the man alleged to have received the money, as plaintiff.
His Lordship-The question is, asa you joia two persons who have not a joint interest.
Mr. Kong Sing - Yes, if i make him plaintiff, He is only plaintiff as trustee for Tang Kwong Tsui.
Mr. Johnson obj‹oted to a joint action being brought, as the infant had no claim whatever. The action should be dismissed with costs to date. Plaintiff had failed absolutely.
His Lordship non-suited the plaintiff with costs, remarking that he would liks to get to the merits of the case, but could not.
SWATOW AND THE ELECTRIC
LIGHT.
Swatow is iu the peculiar position of having an electric installation but no light. The ua. dertaking, which started so well a year or two is now closed down, and the plant is lying ago, idle. The Chiness company which owns it is averse to foreign capital b÷ia; invested in the enterprise, with the result that all attempts of Europeans to obtain control of the undertaking have prov. d unavailing.
1
I
Wan
the company commenced lighting it had only contracts for three hundred lights but within three months that number had grown to Book When the company ceased work- iug uu tua first ocasion it was supplying some 1,700 lights It WAS re-started and did very well until lightning struck a dynamo. been closed down.
!
Since
then the works
have
The light was remarkably obeap, perhaps too cheap, the charge being only a dollar per month per amp, and it is declared with con. fidence by those who ought to know that at
paid area $150 per lamp the undertaking would baro on the existing basis. But lack of capital handicapped the work and as share- holders who had already paid ou $30,000 bɔy ɔad the stated capital refused to contribute further there was no other recourse bat to shut down the works Thus it is that Swalow presents the unique spectacle of a town with an electric justallation bat no illuminant except the primitive paraffin lamp.
IMPORTS,
COMMERCIAL.
RICE.
HONGKONG, 14th November. — The prices are nearly the same as when last reported.
Quotations are :-- Saigon, Ordinary
$5.35 to $5.43
Garden, White. Fine Cargo
Round, Good quality Long Siam, Field mill cleaned, No. 2 No. I
5.05 to
5.10
5.20 Lo
4.901 to 4.95 4.95 to 3,00 5.10 to 3.29 5.83 to 5.95
5.25
COAL.
Hongkong, October 14th.-The arrivals of coal since the 1st inst. amounted to only 26,800 tons of Japanese. The only coal expected is 22,700 tins of Japan coal. There have been no sales of any importance in the interval, Quotations according to Messra. Hughes and Hough's sircular are as follows:-
Cardiff.. Australian
.$20 to $ ex-ship, nominal. ..$10.50 ex-ship, nominal. Yuhari Lamp...$12.00 or ship, nominal. Maxi Lump $10.50 to $11.00 ex-slip,nominal.
Moji Gump ..$7.75 to $9,50 ox-ship, steady. Moji Unscrvened$6.00 to $8.00 ex-ship, steady. Akaike Lump ...$8.75 to $9.00 ex-ship, sellers, Labuan Lump ...$9.00 ex-ship sellers.
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