216
SUPREME COURT.
Thursday, February 11th.
IN BANKRUPTCY.
BEFORE HIS HONOUR SIR FRANCIS PIGGOTT (CHIEF JUSTICE).
A COMPOSITION APPROVED. Re Ho Shu Chau.
Mr. Kong. Sing, who appeared for the debtor, said this matter came before his Lordship some time ago, when all but four of the creditors had approved of the scheme. Mr. Jackson then appeared for the European creditors. He had now filed four declarations, but he understood there was another Chinese creditor who was not at the meeting. Debtor informed him, however,
that that declaration could be obtained.
His Lordship-There was some other reason why the application was not granted, I think.
Mr. Kong Sing- Because the European creditors were getting 60 per cent and the Chinese 25 per cent.
Mr. Jackson stated that the reason why the Europeans were getting the preference was because, when the debtor filed his petition, they agreed to continue to supply him with goods and allow him to carry on his business.
His Lordship-What is his business? Mr. Jackson-A jeweller and clock maker. The Chinese creditors saw it was to their interest as well as to the interest of the others to allow the business to proceed.
THE HONGKONG WEEKLY PRESS AND
Mr. Grist-Creditors take no notice of meetings, but rely on the matter coming before the Court. The statement of affairs might be thoroughly upset when the debtor came up for examination.
His Lordship-I don't see any inherent reason why the creditors should say they want this man publicly examined. Is there any question of a statutory majority at these creditors meetings? The Official Receiver-In a case of composition. His Lordship-I think, on the whole, a public examination is necessary,
The Official Receiver-I submit it is very convenient to get adjudication in these cases, because here is the business being carried on by the man and it may be a month or two before the examination is closed.
Mr. Dixon-The reason for making the application is that offers may be made for the business as a going concern. Probably there
would be more assets for the creditous if the business were sold as a going concern;
Mr. Grist-If the whole of the property were transferred into the hands of the Receiver he would then be able to sell it for whatever he
creditors. I see no particular reason for rushing thought proper, without any reference to the things through.
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His Lordship-Mr. Dixon says there is. Mr. Grist His object is to sell the business. Mr. Dixon-As a going concern. The resolu- tion was passed at a very representative meeting on the proposition of the largest creditor, who would take about 30 per cent of the assets.
His Lordship thought on the whole that Mr. Grist was right. The scheme of the Act was
His Lordship-In the circumstances I shall that soon after making a receiving order the allow the approval.
APPLICATION FOR ADJUDICATION.
Re D. R. Captain, trading as D. R. Captain and Co.
:
In this case Mr. C. F. Dixon (of Messrs, Hastings) appeared in support of the application, and Mr. E. J. Grist (of Messrs. Wilkinson and Grist) appeared to oppose it.
Mr. Dixon informed the Court that at the first meeting of creditors held on the 6th instant it was unanimously resolved that the debtor should be adjudicated bankrupt, and Mr. Wake- man appointed trustee.
Mr. Grist said he appeared for several credi tors in the case. No public examination had been held, and therefore this application was rather premature. He should certainly like to have the debtor publicly examined before any order was made for adjudication. The practice in this Court had always been to hold the public examination first.
His Lordship But your creditors were at the meeting, and they agreed.
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Mr. Grist-But no resolution was passed. Mr. Dixon-There was a unanimous resolu- tion. Mr. Grist was there, but he had not proved, and could not take any part in the meeting.
Mr. Grist-I am a creditor, and also re- present one of the second largest, W. G. Humphreys.
Mr. Dixon-Mr. Grist has not proved and has no locus standi.
Mr. Gristhat may be, but I am bringing to the notice of the Court that the granting of this application would be contrary to the provisions of the Ordinance. When a man is once adjudicated it may put things in a different position.
His Lordship-You rely on the practice of the Court; I don't know anything about it, The point has never been raised before.
Mr. Grist-I don't know one single instance where a man has been adjudicated without first being publicly examined.
His Lordship (to Mr. Wakeman)—What is your knowledge of the practice?
The Official Receiver-Sir William Goodman laid it down that there is to be no adjudication until after the public examination, but there is no provision in the ordinance.
His Lordship-I think the practice must be followed.
Mr. Grist--At the present time the creditors have not had a chance of examining this man.
His Lordship-Then why did they puss the resolution ?
first general meeting was to be held, and another meeting 28 days after the making of the order. But in between that the public examination should come. It was clear that the voting of creditors on a resolution should be held after the public examination.
Mr. Dixon-In the meantime I would ask your Lordship to allow the debtor to be paid a salary for carrying on the business?
His Lordship That matter can be referred to in Chambers.
THE A CHEE CO. BANKRUPTCY. Re Chan Al Kaṁ ex parte Chan Ling Fuk. This public examination was conducted by Mr. G. II. Wakeman, Official Receiver.
Chan Al Kam said she first became aware of the fact that the firm of A Chee was insolvent at the beginning of Feburary, 1907. They then had no money to pay for the goods supplied. The liabilities amounted to about $40,000, while the assets, including stock-in- trade and book debts, amounted to $2,000.
His Lordship-Is the $40,000 only incurred in debts connected with the business?—Yes.
Does it mean that your fokis did not under- stand the business-Formerly the business was managed by a man named Chan Long Kim. His Lorship (to Mr. Wakeman) – What are the bad debts?
Mr. Wakeman-Between $3,000 and $4,000. His Lordship-I don't understand how a business like this could get into such difficulties.
The Official Receiver-By selling things on credit to people who do not pay.
His Lordship-The bad debts are only $4,000. The Official Receiver-Bad and doubtful. His Lordship-It seems to me a bad way of carrying on business.
The Official Receiver-They must. have been running at a loss for years,
His Lordship-It seems to me they did not know how to manage the business.
Mr. Grist (who represented the execution creditor)-Salaries and rent were a big item.
His Lordship-The profits should be made to cover that.
The Official Receiver-I think it is chiefly the bankrupt's friends who have suffered in this case. They rau the business at a loss until they could get no more credit. I think.
[March 15, 1909.
Who was in charge of the business ?—— 31 y son. Are you satisfied with the way it was carried on P-Yos.
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Mr. Leo d'Almada e Castro (who represented ́ the debtor) said there had been very keen com- petition in this class of business of late. The debtor only came into the business in 1905.
His Lordship-I am sympathising with her. The Official Receiver, continuing the examina- Mr. Grist I cannot say but there would|tion-Haven't you borrowed very large sums be a great number of creditors who certainly did not vote for the resolution.
Mr. Dixon-That is not so, my Lord.
from your relations?—Yes.
What was that money for ?---Some for family use, some for the business.
His Lordship-I suppose she knew nothing about it.
The examination then closed.
THE PROPOSED NEW | TRAMWAY TO THE PEAK,
The report of proceedings of the Public Works Committee at a meeting held on the 30th December, 1908, was laid before the Legislative Council on the Thursday last. There were present at the meeting the Hon. the Director of Public Works (Mr. W .Chatham, C.M.G),Chairman; the Hon. Colonial Treasurer, (Mr. A. M. Thomson), Hon. Mr. E. A. Hewett and Hon. Mr. H. A. W. Slade.
The CHAIRMAN stated that the proposals plan and sections of which were laid before the Com- mittee, had been submitted to Government for the construction of that portion of the tram- way extending from Upper Albert Road to Robinson Road, namely
(i.) By an open cutting running through the western section of the Public Gardens and intersecting the areas occupied by palm trues.
(ii) By a tunnel about 300 yards long, underneath the Public Gardens, commencing bolow Upper Albert Road and emerging near the entrance to Glenealy culvert, whence the line would be in the open and would approxi- mately follow the course of the existing nullah.
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(iii) Partly by cutting in an unimportant portion of the Public Gardens and partly by bridging in Glenealy supported on lofty
trestles.
Ho further stated that (i) was the origina; proposal prepared by Messrs. Denison, Ram & Gibbs when the Government was first approach- ed on the subject, and that His Excellenoy Sir M. Nathan had refused to consent to it on the ground that it would cause serious damage to the Public Gardens. Scheme (i) was then submitted but, before any definite conclusion was arrived at, the matter passed into the hands of Messrs. Leigh & Orange, who, after a survey of the ground, prepared scheme (iii).
After full discussion, during which the opinion was freely expressed that there was great need of additional facilities for reaching the High Levels and Hill District, the following recom- mendations were unanimously agreed to:-
(a.) That proposal (iii) (bridging and trestles
in Glenealy) bo not approved. (b.) That proposal (i) (open cutting through the Public Gardens) is the best and should be adopted, the damage done to the Gardens not being, in the opinion of the ommittee, so serious as to justify its rejection. The width of the cutting to be reduced as far as possible by the construction of retaining walls, if necessary.
(c.) That, failing the approval of proposal (i) by the Government, proposal (ii) should be adopted.
The Committee were of opinion that the zig- zag pathway between Government House and St. Paul's College should not be closed and that the Tramway Co. should be required to carry out whatever alterations jvere necessary to preserve this path for the use of the public.
With regard to the limits of deviation shown on Messrs. Leigh and Orange's plan, the Com- mittee were of opinion that these could be much curtailed and should be restricted to the narrowest possible limits.
The prize of Y500 recently offered by Mr. Nakamura, a merchant of Doza, Nagasaki, for the best essay on "How to Improve Nagasaki," has since been the subject of a discussion in the local Chamber of Commerce, to whom the money was entrusted for disposal. At a committee meet- ing on the 23rd instant, says the Press, it was decided that the prize should be withdrawn, on tho ground that such a competition would only tend to advertise the port's depressed condition to a greater extent, which was undesirable. Nagasaki was now beyond the talking stage, and required all the available energy of its citizens in practical work for its promotion to prosperity.