Page

CORRESPONDENCE.

THE HONGKONG DAILY PRESS, MONDAY, JULY 95mm,

SPECULATION OR GAMBLING ? THE "MUI TSAI" QUESTION. JUDGMENT IN THE EZRA

ĺTO THE EDITOR OF THE HONGKONG DAILY PRESS."]

BI,The news that a Mass Meeting of Chinese is to be held to discuss the above Question is good news to those, like my self, who have been diligently colleeting facts for seine months pust.

"Unfortunately, however, the first good impression created by the announcement of such a meeting is removed by two im- portant factors, namely:--

1. That the meeting is being avowedly called for the purpose of defending an old Chinese practice, and,,

BANKRUPTCY CASE.

tract.

To enter into such transactions with It may be that the consideration - ad- such an object is sometimes spoken of as judged sufficient is of the most meagre

degree. gambling on the Stock Exchange; but it certainly does not follow that the In the case of Buitenlandsche Bank Hildesheim (1903) 19 transactions involve any gaming con-ereniging

LT. R. 841. Sir Hena Collins then Master of the Rotls held that the mere EXCHANGE CONTRACTS NOT BETS.

contract cannot properly be so.

to call for the shares if one wished was sufficient to avoid the gaming act Judgment was delivered by Mr. Peter described (gaming contract) merely be

case of speculations in "Options" and the Master of the Rolls Grain, H.M. Assistant Judge, in the cause it is entered into in furtherance cent Supreme Court, at Shanghai, on July of a speculation." isth; in the matter of the Netherlands A great point has been made in this said in his judgment "It is a bargain for Trading Society and the Nederlandsch case that the debtor was merely gain good consideration for the right to call Indische Hundelsbank the Official bling, that he was not a member of any for certain shares. It was not a bet nor merchants' firni, in fact nothing more

was it a gaming contract. The considera- Receiver in re Judah Isaac Ezra.

Mr. A. L. Dickson.. Offeinl Receiver, than a clerk in his brother's firar. That tion was paid for a real right to call for appeared with Mr. H. Lipson Ward for he was not carrying on any Targ trant particular Khares on a given date.

actions which necessitate the obtaining was like a bargain for a light to call for the appellants.

of large sums of money. Is there any so many tous of iron at a certain price Now this is very reason why this should effect the mind on certain day.". of the bank beyond ascertaining that strong cass, there was no doubt that the

alone. But

nevertheless the right remain- he was likely to meet his obligations, parties were really speculating is options. There is, I think, no doubt that he was speculating or in a broad sense of the ed to call for the stock and as long as that right wmained there was sufficient word, gaubling.

consideration to prevent it being a mere

or gamble.

Judgement was as follows:- These two cases come before me on a motion by the Netherlands Trading Society that the decision of the Oficial Receiver dated April 14th, 1991, reject. ing a proof of their Society against the extate of Judah Ezrn a debtor in bank- ruptcy for Tis. 90,949.12 may be reversed and the proof ndinitted.

That the questions proposed to be put to the meeting do not really go to the root the status of mai tsuis or to the heart of the possible abuses which, And a similar motion by the Neder- landshe Indische Handelsbanke that a may flow from thut system.

With all due deference to them, the questions 1 to 3 which are suggested by my Unofficial 'ellengues on the Council are not nearly searching enough, but seem iperely intended to make certain Members

*

.

Now in the case before me, on the face

He was living in a style of a man of some wealth, and obviously had been, if not at the time of the transuctions with the Bank, a man of considerable of the continet it is an undertaking of December to the Netherlands Trading proof of this bank for Tls. 425,131,37 may wealth, no doubt through successful Ezra the debtor to deliver £55.000 on 1st be admitted and the Official Receiver'speculations:

The Bank we may assume considerad Society, and in the ease of the Neder landsch Indische Bank a certain sum was man in the position to also to be delivered on a certain date. rejection reversed.

Both cases raise the same points of that he was law and fact, it has therefore, been meet his obligations, and deliver the There is nothing to show on the con agreed that they shall be heard together. money if called upon. They made these tracts that there was any intention on the The facts are as follows:-On August contracts for the delivery of the money, part of the Banks not to call for delivery their consideration being their right to of the money. In fact as regarde the of Parliament in London (who have in- 7th, 1920, the debtor sold to Netherlands call for the delivery of the money when Netherlands Trading Society the corres-

Trading Society, two sums of £25,000 ̧«/ dulged in rather loose general statements on August 9th, a sum of £25,000 and on due, the debtor's consideration being hispondence distinctly tends to show that and who certainly have not been assisted August 19th a sum of £10,000 the date right to compel the Bank to receive. they did intend to insist upon delivery

True, incidentally one might make a of the money.. in their search tor tacts by the official of delivery in each case being December, prout on the exchange and the other The Bank on 23rd November, 1920, writes to the debtor asking him which answers to their questions in the House 1920,

In the Nederlandsche Bank. case the might lose.

pay it into, and fur Furthermore,

Bank he is going of Commons) look foulish.

£10,000, £20,000 and £30,000.

la the case of the Netherlands

before 3 p.m. on 1st December they will be compelled to buy on that afternoon or a promissory note Society there was

And on 2nd December they write to the and judgment bad been obtained for the

the next day. debtor saying that as he has failed to pay 'Are In the Nederlandsche Bank there was

The legal aspect of the case is the the money in they have been compelled to per question to be put is not:

What rights no promissory nota and no judgment. servant giris slaves but

This case has been one of some difficulty On the dates when the various accounts same whatever the nature of the com-buy in the market at that day's rule, has the parenser of amur Ese over her i

and is no doubt of some importance, one The answer to question will be awaited to be delivered under the contracts be modity, whether it is a cargo of wheat with interest, but is not conclusive as toenme due, the debtor, failed to fulfil his or shares of a joint-stock Corapany."

Bramwell and Collin L. L. J. in Thacker of the difficulties has been thna na far as in (I can ascertain the particular point the action which the Government of a obligations to deliver these sums of British Colony should take. The answer money and shortly afterward led his any also both use the illustration this case, namely speculation on Exchange There may be a perfectly good contract does not appear to have been before the to Question 3 is obviously in the negative, petition in "bankruptcy. In due course 48 cruelty any person, whether must proofs of the debts of the two Banks to sell next year's crop of apples of applesCourt or raised in any reported cases

Lord Herschell continues Nor again, trai or riot, is obviously contrary to the came before the Otheial Receiver who trees growing in a specified orchard."

Dit the Questions, there rejected them on the ground that they do such purchases and sales become gam criminal law. fore, suggested by then, my Chinese were monies due on contracts which were

ing contracts because the person purchas solleagues are quite safe in announcing illegal by reason of the gaming acts. ing is not possessed of the money to pay that

in the event of the above-mention On behalf of the Offein! Receiver it is for his purchases, but obtains the re ed matters being found to be facts, we argued that these were merely contracts quisite funds in a large measure by means should request the Hongkong Government to pay the difference in exchange when of advances on the security of the stocks to pass a law to abolish the system the money became dur, that in reality or goods he has purchased. For example, altogether.

The Questions which I would beg leave they were bets on the rise and fall of a merchant who has to pay the price of a Secondly having decided on the form of:

the language of Questions 1 to 3 is far debtor sold the sums £23,000, £25,000. legitimate commercial transaction ther states that if he does not pay it in:

wo general, as a negative answer could be given to both of them merely by prov. ing that, in some rustauers, such was not the car. Astregaros question 2, the„pro-mount dur.

to suggest that the Mass Meeting of Chi- nese mould put to themselves are

follows:

1.

4

For

Has the person who purchases'ä mui teai absoluta dominion over her? example, has he the right to order her

(n) To be his concubine,"

(b) To be his mistress,

(e) To do any work about the house of

nuy description whatever,

(d) in short, to do anything whatever

grasp of the criminal law?

exchanger

have been cited in the course of the argu- :

...Lord Herschell goes on to state It to buy a commodity in the expectation that it will rise in value and with the its resale. Such dealings are of every the intention of realising a profit by day occurrence in commerce.

But on a careful study of all the cases cited in the course of this hearing I am of opinion that one is enabled to arrive at a clear ise.

The first point to be decided is the ques tion of fact. Namely what was the form of contract originally entered into by the parties, and was that original contract superseded by any secondary contract.

of

money on

cargo purchased before he re-sells it, With regard to the judgment in the obtains in the ordinary course the means the contract does that contract entered

into infringe the Garning Acts. Netherlands case, there is no doubt that of doing so by pleadging his bill of lad-

I have already referred to the form of this Court sitting in Bankruptcy has ing and Lord Herschell further refers this contract.and I am of opinion that power to go behind the judgment and to the judgments of Lindley J. and Bram the contracts as they stand are contracts enquire into the consideration for the well L. J. in Thacker . Hardy stating

for delivery of certain nums contract, even when the debtor has con- that he agreed with the law laid down by certain dates. The consideration being sented to judgment (ex parte Lennox, them, namely, that when contracts stand.

as an agreement by which one of the the right of one party to deapad delivery 16, Q.B.D.315).

In fact Mr. Ward did not argue the parties, has a right to take the stock and of the other party to compel accept- point but admitted that there was power bought by him and keep it as an invest-There is no evidence before me on which which he directs which will not for the Court to enquire into the con-ment it cannot infringe the gaming acts. 1 should be justified in coming to a coff In the case now before me, unless I can clusion that a further contract was enter- bring either him or her within the tracts. A considerable number of argu find some evidence that the original con- ed into that the difference of exchange. 2. Are not mui isais frequently purments on behalf of both parties, the tract has been superseded by & later one, only should be paid.

As regards the law I am further of chased for economical reasons, ie, merely majority of which are more or less in as a means of obtaining cheap domestic point.

The Universal Stock Exchange v. Stra-opinion on the cases cited that the fact The first case we have to deal with is service?

point that there must be some under- money makes no difference whatever.

The contract was not a bet, although used as a cloak for purchasing girls for 526, in this case the fact as to whether standing that the commodity sold is not doubtless it was a speculative one, but 3. Is not the mui taui system sometimes Gricecod. Blane (1831) C.B. Vol. II. chat (1505) A. C. 166 emphasizes this that the commodity bought and sold was the purpose of their becoming prostitutes? both parties had entered into contracts bo delivered, in order to bring it within nevertheless, it was a legal contract for

In that case Cave J. in Cannot the purchaser of a mui tea as a purely gambling transaction was the gaming act. resell her to somebody else? If he wants left to the jury

directing the jury said "in order to be legal consideration and does not there- to resell bor, has the parent or other

But the Judge in directing the jury gaming transaction such as the law fore come within the Gaming Acts and

thereby become illegal. person who originally told her the right stated that if neither party intended points at it must be a gambling transac- to be consulted with reference to such that stocks and shares should be bought tion in the intention of both parties of re-sale?

This ible a mere gambling transaction."

the Bank had a right to demand delivery of the money on the date specified.

5. What are the rights of the parent and sold then it was not a bargain but it as of business was there a accres Society "dated 14th April, 1021, and the

(1) What is the status of a mui trai, (ii) Whether the mui tai system ought

to be continued (a) at all, or

(b) in its present form, in a British Colony. Yours faithfully,

H. E. POLLOCK..

The questions for discussion at the meeting convened by the Hon. Mr. Lan Cha-pak and the Hon. Mr. Ho Fk are

as follow:-

1. Is it a fact that servant girls are

brought up for prostitution

2. Aro servant-girls slavest

Bre

t;

That is

admitted.

On the question of. costs, Mr. Ward the thought there would be sufficient money

left in the nasets to pay the costs..

His Lordship: Is there no application for appeal 1

much. assistance to us in this, as it was decided entirely on its own facts.

In re Griere (1890)." This is also a case pur- dealing with differences in sale and

Mr. Dickson: No. your Lordship.

SPORT.

LAWN BOWLS.

Appended are the scores:-

XL.B.G.C

HO. 1 BINK.

K.CO

The order will therefore be that the ratice of the Official Receiver rejecting. notwithstanding those ostens the proof of the Netherlands Trading or other person who originally sold the Cresswell (J.) and the other judges understanding that the stock should never mui taai as to redeeming such mus tras, agreed was the right direction, ie, if be called for or delivered and that differ- notice of the Official Receiver rejecting He the proof of the Nederlandsche Indischo ... buying her back

the intention of both parties was that ences only should be dealt with?" (a) from the person to whom he origio-the agreement should be settled by the further points out that if this secret Handelsbank dated 1st June, 1pe, bu

ally sold her, (b) from the person to whom she was payment of differences, it was a gaming understanding did exist it was a gaming reversed and the above named proofs transaction. On the evidence before contract and as such illegal. When the -re-sold? The above Questions, if fully answered them in that case it was abundantly case camo before the House of Lords said, in answer to his Lordship. that he! will, I think, enable each one of as to clear that it was an agreed settlement Lord Halsbury characterised it a

by paying difference and the jury so most accurate dirretion." judge for himself

found. In this case now before me there point at issue in this case now before me In re Cronmine ez parte Wand (1898) is no jury and this fact as to the inten tions of the parties has to be found by was another case in which the question of fact as to whether transaction with re myself on the evidence before me.

This question, whether, when the Bank gard to "difference" on sale and par. chases of stocks and shares were on the and Ezra entered into the agreement, facts, gambling contracts and is not of the understanding was that the money was to be paid or merely the differences of exchange I will deal with presently.

A League match was played on Satur In Thacker v. Hardy (1878) 4 Q.B.D. 886. Lindley J. went into the question more chase of stock which is an illustration of day between the Kowloon Howling Green fully. He there refers to these transacs contract showing that there was an Club and the K.C.C. which resulted in tions on differences as "Time bargains agreement to pay differences only. Linda win for the former. and says What are call Time bargainsley MR, in his judgment stated very in fact, the result of two distincy the difference between a contract by reason of its being a gaming and perfectly legal bargains viz., 1st, a

A. Gourlay.. bargain to buy and sell, and secondly, a one and a contract which does not D. Keith. subsequent bargain that the first shall within the gaming act He says

course, if it is an agreement Aimply to D. Harvey. not be carried out."

The Lords Justices Bramwell, Brett buy and sell stock for delivery and Colin L. L.J. agreed with the law ment the statute has no application but laid down by Lindley, J., stating in their on the other hand, if the real effect of judgments there must be two separate contract is to stipulate for the payment. McKay, W. Hedley. contracts or bargains one to buy and of differences it is a gambling transac J. Henderson. sell and the other not to deliver but tion.

He then deals with the evidence which W. Russell. merely pay the differences." Is there any evidence in this case now before shows that there was an agreement to me on which I can find that this second deal in differences only

He points out that the agreement runs D. McKenzie-. bargain or contract was entered into thus beg to advise having sold to R. Dixon.

IR. Hall. between the Bank and the debtor?

you 20, Canada at a certain price I want more than inference. I wont

that bad been all, it would be an ordinary R. Lapsley. some definite facts which show that the sold note: there would be nothing on the original contract, which, on the face of face of it to show it did not ment what but there was something BIR, I am directed by H.E. Dr. Wuit, is a perfectly legal contract, namely it said:

plus th if stock taken Ting-fang, the Minister of Foreign to deliver a certain sum of money on else

The expression "if taken up. Affairs, to inform you that the report a certain date, has been superseded bz|up.". contained in your issue of the 12th inst. a second contract by which both parties shows plainly that the parties do not intond that the stock shall be taken, that to the effect that President Sun Yat-sen agreed merely to pay differences. had concluded a loan from the Japanese The next case I come to is Forget the buyer need not take it up at all unleas Pacific Co. for $12,000,000 with the Canton-Kowloon Railway and the Hoyen Ostigny L.B. (1995) A.C. 318, which he chooses but if he does he has to pay District as accurity, is entirely false. I although not directly in point is of very an extra 1th. This is not on the face, of am to add that no foreign loans, far less great assistance by reason of the judg- it therefore a bargain for sale and put

raent of Lord Herschell, L.C. of Gaming, chase at all." Japanese leans, have been contracted by

contracts generally. this Government.

3. Are servant-girls kept for the sexual purposes of their masters who, when tired of them, sell them?

4. Has the Chinese Government passed

any law to abolish the practice of keeping servant-girls1

3. Can the owners of servant girls ill

treat them as they please!

6. Any other matters relating to the question of servant-girls. ED. H.D.P.

CANTON GOVERNMENT AND FOREIGN LOANS.

[TO TUB EDITOR OF THE HONGEČNO DAILY PEERS."]

come

and

pay.

D. Gray

(Skip)

(Skip)

13

R. C. Hunter.

D. A Purvis.

J. P. Robinson.

A. G. Pile. (Skip)

NO. 2 RINK.

..

.18

A. W. E. Davidson.

H.. Henderson.

J. M. Jack.

J.

1. Gibson.

39

... (Skip) ****

NO. 3 RINK,

H. E. 'Stevens

J. Hyde.

12

J Wilson." J. McMurtrie."

(Skip)

24

(Skip)

AFFRAY AT WEST POINT. CHINESE WATCHMAN STABBED. A fetid between different classes of

workers at West Point culminated in a street affray on Friday night in which both, or all, sides. Hawkers, rattan a great many people were concerned on There unless an additionallth was paid workers and restaurant employés are He draws particular attention to the the contract was purely one for the pay said by the police to have been concern- It is interesting to note that the news

difference between "Gambling and ment of differences It was a contract of od. A strong fores of police turned out emanated from the Peking Government Speculation. He said in his judg- the kind referred to hy Cotton L. J. in to restore order and their arrival was which has been living on Japanese loans borrowed on the most ruinous terms and ment "It may well be that the appellant. Thacker. Hardy The essence of gam the signal for the dispersal of the mob, which evidently desires to pass on: some was aware that in directing a purchase ing and wagering is that one party is to which left behind a Chinese watchman of the odium from its to this Gevern to be monde, the respondent did not in in, and the other to lose upon a fature who had received, two stab wounds. He

event which at the time of the contract Taithfully,

tend to keep the shares purchased button incertain babura,” was taken to hospital and was found TF. LIN

to sell them when, as be, anticipated Thren was 20 consideration, no right not to be severely wounded. An arrest Secretary. would be the ease, they rose in value; from one to demand any thing. From the was made and Mr. G. N. Orme on that the object was not investment but other Feyond payment of the difference Saturday, remanded the defendant for a speculation."

unloes the th extra was paid.

ment-Yours

Ministry of Foreign Affairs Canton, July 21st, 2021.

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