THEBEAUMONT BANKRUPTCY,
CASE.
POLICE COURT PROCEEDINGS, "INTERESTING EVIDENCE ON TRADE BOOMS AND SLUMPS.
Evidence for the prosecution was practi. cally completel, yesterday afternoon, in the case in which Mr. Ellia Ackroyd
with
haying Beaumont is charged absented binisdf from the Colony with intent to left or delay bunkruptcy proceedings brught against him.
The case was heard by Mr. R. E, Lind- soll. The defendant, who was given meat at the solicitors' table, was legally uppsented by Mr. C. A. S. Russ, Mr. La Alunda and Mr. G.-G. N. Tinson appeared on behalf of interested parties.
Mr. G. N. Orme (Oficial Receiver), said the charge was brought under sub-section s of acetion so of the Bankruptcy Ordin, Aaase. The onus was cast by the Ordin ance on defendant to show that he had good reasons for leaving the Colony. Defendant was carrying on business in
THE HONGKONG DAILY PRESS,"
MR RUSS CROSS-EXAMINES In crom-exmination, Mr. Russ elicited that the witness was an expert in rice and received a very substantial muneration" while with the firm.
Mr. Bus: In 1919, did the firm show st profit?
Witness: A very small profit.
Te-
In December, 1919, did the firm show a profit, after payment of all expenses, of 20,000 and a turnover of very early $6,000.000 --Yes.
At the time Mr. Beaumont went home for a boliday and to get orders, was the firm perfectly solvent and very Hourish ing Yes
He left you with a full power of attorney to set for him -Yes.
Did the firm, during his absence, on the recommendation of the San Francisu office, buy rice the value of 100,000 Mex-Yes.
"ALL THE NICE PROFITS GONE."
קווי
The Official Regiver then re-examined. You said all Mr. Beaumont's money was gone," be said, "What money had be in the firm t
L
Witness: The prosts of 1919. This in the Company. Individually had be any money in the firm 7-He was sole proprietor.
You mean All the new profits of 1919 were gene-Yon.
The witness explained, forther, that the, profits were commissions on the sale of rice for the Government.
Mr. Orme: It was all commission -
12
No gumbling No.
THURSDAY, MAY
THE CHIEF · JUSTICE PROTESTS.
PENANG MILLIONAIRE WILL SUIT.
OUGHT NEVER TO HAVE BEEN
TRIED IN HONGKONG."
Although summer in advancing, wigs arp still being worn at the Supreme Court and yesterday only one fan was turning, and that at half speed. These factors may have accounted to some extens for a little heat that was engendered in the course of the orning's proceedings in the inter minable Penang millionaire will suit.
The trouble started with the question whether Mr. Brutton was entitled to make a certainlose of a document already pat in, Mr. Alabaster not having indicated that that particular use was to be made of it. M Brutton, of course, is conducti ing the cage for the plaintif in Mr. Alabasters absence.
Mr. Orme mentioned to the witness
Mr. Ellon Potter declared that it was emplaints by a Mr. Tuska, a rice buyer in San Francisco, that the firm bought absolutely essential to say why docu- rice at one price and sold it as another. ment was put in. He had. put all his
The Magistrate:
|
At that time was the lex, dollar as they brought Gore you nileging that cards on the table when he opened his
You insured the exchang up to $90,0
Hold Yea good as the American dollar —Yes.
In the two month you were away at Shanghai, did the market fall very con
Yes. siderably
Rice fell from $15 à picul to some where about $6-Yes.
Was that owing to the Cuban market the Colony Buring 1919-20 under the debeccruing ingested--it was owing to the Cuban embargo: they prohibited sigcation of E. A. Beaumont & Co.
imports of rier. The firm had a branch at San Fran
•
cico. He did a considerable busines in rice, in 1919, "in connection with Govern- ment purchas Defendant way interest. ed also in pires gounds, etc. da October: 1910, he went to America and then co to Europe, leaving Mr. Castro, spark manager, in the offer and Mr. Hamer, import manager.
ASSETS: 83,000,
Mr. Orige stated the Burport of the evidence Mr. Castro would give and inen- tioned that after the reeiving order in bunkruptcy was made, the assets were found to realise $3,000 and the liabilities, so far as proved, auiounted to $200,000, together with same sterling liabilities to No farther com- the extent of £12.000. munization was reerived by the Official Rec iver from Mr. Beaumont, and, excest for tew casual, communications, Mr. Castro-nrard nothing-further
Cuba
your contracts, and did the exchange drep. at the same time and you made, a lond?--Yea. further heavy loss on that--- Yes.
60 per cent. roughly.
rice outright it'?
and sold it at a profit1
Mr. Russ: Is this relevant The Magistrate: I don't know.until I understand it.
If we made our profita by
Mr. Rubery, it is not relevant to
highway these proceedings.
Mr. Lo D'Almada offered to explain the master but Mr. Russ intimated that Beaumont would explain either in Mr. that Court or in the bankruptcy pro- cerding
The rice was sold to America and in ported to Cuba?We sold to
In reply to further questions the wit through San Francisco.
Were these contracta cancelled and youness said the deposit receipts he men the lost the difference three-fifths of $400,000 tioned had not been realised for
benefit of the creditors; the banks were Th senior clark in the Official holding them against overdrafta Receiver's office produce files showing that the creditors' petition and, the receiving order were both dated September 15th, I 1920; the assets were $3,766 and the debta proyed $214.000 and £12,350. As there was no statement of affairs by the debtor it was not know if there were other creditors. No information or communi- cation was received from the debtor.
21 Le was
The Magistrate: That is to say, you lest over $200,000 £
Witness: About that.
A few moments later, in reply to Mr. Russ, the witness put the loss at $120,000. He also explained that when the firm hought rice, it sold the exchange to the bank and had to pay compensation to the bank on the exchange contract.
Mr. Buss: That transaction was up- known to Mr. Benumuot and was not his fault in any way!-No.
it---:
Mr. Baumont's money was all in the firm-pl lost, every penny of Practically all of it.
And in addition to that, there were creditors-Yes.
opis-as-to the posi. What was your-
In reply to Mr. Russ, the witness snid" Mr. Melbourne told the creditors' meet-. ing that the debtor was in Shanghai.
Mr. Russ: Did your department, from first to last, ever write to Mr. Beaumont
to come to Hongkong requesting him
Witness: No, Mr. Orme: Was any address for Mr. Baumout given on the file
Witness: No.
At this stage. the question of the next trate asked Mr. Russ if he would be calling any evidence for the defence in that Court (the charge being one which could not be dealt with summarily).
Mr. Russ replied that he would submit that the prosecution had not made out
No more steps were taken until March. of this year, except formal proceedings.tion of the firm when Mr Beaumont rehearing was mentioned and the Magis Mr. Beaumont was adjudicated a bank-turned to the Colony and left for Shang hai? Do you consider that, if a reason of ready money could have been raisi or borrowru, the firm could have enrried on 7-Yes,
rups and in March of this year a war- rant was issued and defendant was The case was brought to Hongkong. 'simply:
Did defendant leave the Colony for some boad file purpose?
The Magistrate On whom application was the warrant issued!
Mr. Orm replied that he himself applied for it.
The Magistrate: On the instigation of the Government!
Mr. Orme: No, owing to the continual applicaticu of creditors that i should take some steps to get Mr. Beaumont recalled.
Mr. Mr. A. Jodailho, at present a book. keeper
at Masera Jardine, Matheson & Co., said that, in August, 1920, h was bookkeeper to Messrs. E. A. Beaumont & Co. He made out four receipts for payments into defendant's private ac- count between August 25th and 30th, 1990. The defendant signed the receipts. One of them referred to the cheque now pro- dued (for $3,087) drawn in favour of the defondant."
EVIDENCE OF THE DEBTOR'S MANAGER.
The witness: In April and May, when The I was oz sick leave in Shanghai. dificulties were chiefly over rice business we were transacting for the Government, Oertain other causeAlso over Any
sale contracts.
uble
aum
And been saved ?--Yes,
י,
Mr. Beaumont went all over the Colocy sick people and trying to raise money. and failed?—Yes. ;
1.
"A FRIGHTFUL SLUMP."
It is common knowledge that there was a frightful slump and every one was at wits end to find mon it was just after the big slump in the East:Yes.
It was imperative to get money: Whas did Mr. Beaumont suggest 1-He said he bad influential friends in Shangbai and he was going to
them Did he know where he was going to stay in Shanghai ?No.
But you knew where to send letters | and you sent them and received replies Yex
At the time he went, were creditors pressing 1-No, none.
You received no letters of demand?--I do not remember any
No writs?-No.
No.
"
a case.
..
Mr. Orme remarked that the enur, was on the defendant to prove bond fides.
The Magistrate: Yes, of course, but they get a large amount of evidence favourable their side from your chief witness.
Mr. Orme: 1 knew of no evidence that the defendant did anything. If be did, I shall be glad to hear it.
The hearing was then adjourned until Saturday, the defendant being released on the same bail as before.
ALLEGED THEFT OF KEROSENE.
"--
A.P.C. CHINESE EMPLOYEES CHARGED.
cave,
Mr. Britton thought the line the plain tiff's comsel took with the document" should he put the defence on the qui
rive.
Mr. Elion Potter and Mr. F. C. Jenkin complaind that Mr. Alabaster had pre- served agair of mystery in his references to the deument.
A mod vierai was renched with re- gard to his little dispute but it proved only a reliminary to a much biggon battle.
Although the case for the claimant had closed, M.; Brutton sought to introduce photograps of a register of burials kept evidence ju his beta in the shape of at the Munt Ersk na Cemetery, Penang It had only just been possible to got this and it as needed to rebut evidence
It called for the trusters of the estate. would ted to disprove the trustees con tention tht the real son of the testator was buriejat Mount Erskine and that the plaintiff as another Tichborne, Claim-
aat.
I wan to put this photograph to the witness," aid Mr. Brutton.
"OT GOING TO HAVE IT." The Chef Justice: That will entitle the other ide to call any amount of evi deuce to get your point. It is entirely starting a additional case and I am not going to ve it.
This ane,
continued the Chief Justice, ith HOLIP heat, "oughi Lo have been brought in never
have been tried in Hongkong, und I this Co-it-ought never to going to sy so, later on. All our time has been gen for months and months, trying a Pang case. It may be all right for the layers but it in Dot to the advantage the Court or of the adminis tration of justice in Hongkong. I hope to be ableto take steps to see that a repetition this does not happen."
an
Mr. Brupn said the trustees lived in I apply formally for leave Hongkong. to put in photograph," he added.
The Chif Justice: The evidence could havebeer taken long ago on commission.
Mutton: I told you I could get o irmation.
"ThChief Justice: At this stage you get father information and the Court is
askedo admit it.
Brutton: It arises more or less or s-examination. We did not know, befol in what part of Mount. Erskine! Cukry the body was supposed to be by Mr. Brutton explained, further, as a European, he had been unable, ver in Penang in connection with the to get the required information, but . Woo had been able to trace the Four Chinese were charged before Mr. gisters and get permission to take photo- Fraser nt the Magistracy, yesterday after. aphs noon, with the theft of 40 gallons of The Chief Justice said that, being kerosene from the Asiatic Petroleum Com-nxious to give the claimant, full justice pany's North Point Depot on April 26th ae had, the previous day, admitted a An alraative charge of receiving theertain document as evidence, and he was kerosene was preferred against two of thhow asked to go much further.. "I bave defendants.
had quite enough of this, already," added; the Chief Justice.
Mr. M. M. Watson, solicitor," appeard for the prosecution and Mr. A. E. H defended the two men who were charg with receiving.
trees.
"ALL HAD QUITE ENOUGH OF IT." Mr. Brutton: We all have, but when we are trying the case; surely any facts which go to deal with "documents on which the other side base their case should be received.
The Chief Justice: As plaintiffs, you should not have gone to trial until you were ready with your evidence.
Any suggestion of bankruptcy proceed. Do you consider Mr. Beaumont left the Mr. Henrique Arimendo Castro. manag. ing partner of Mesure: H. A. Castro Colony to avoid service of any petition
or other process in bankruptcy4-No. "Co. said that, from July, 1915, to
Mr. Orme: There were none to avoid September, 1920, he was expert manager to Messrs. E. A. Beaumont & Co. Mr. so he cannot be charged with that.
Mr. Russ explained that he was taking Beaumont was in sole charge of the busi
Witness had a share the witness through the words of the Dess at the time. but received-salary and commission. Section. The petition could have been office, in San ↑ served on you the defendant's attorney The firm had. one
Mr. Watson in opening the case, Francisco The business was that of gen. in Hongkong?" he asked the witness and eral merchants, but was done mostly in the reply was in the affirmative.
Do you consider that he left to avoid that on April 26th at about 8.16 a.m. rice. In 1010 considerable business as
Inspector Purden saw some men rarr rice. In
examination of his affairs -No.
buckets along the wall surroundingle done for the Government in
As these transactions took
place while
D Asiatic Petroleum Company's October, 1919, Mr. Beanmort went abroad
he was away, you were the only person
The men were seen to lower the bits and was abroad thenceforward until 1920.
Mr. Brutton: This evidence bas come Mr. Orme: What happened during who knew what happened?-Yes,
He knew ro more than the Official down over the wall where they were 1920 as to the circumstances of the firm?
The Chief Justice: That argumenti When dir
you first receive intimation of Receives could have found out from theived by two other men. The one out in the course of the case.
taken up the hill and hidden behinome books-That is 30. dificulties!
would apply to any case. The plaintiff, Do you consider Mr. Benont left the
Sub-Inspector Parden gave evide in has doubt on certain points and is to say I have Colony to
accordance with Mr. Watson's sent. ask to re-open my case:
Mr. W. B. Lightburn, manage the further evidence on this." If that were rupte delay any proceedings in bank-
North Point Installation, identifie o alowed, an action could never come to He said that on the morning of theft an ead. he detailed the Chinese foreman eight conlies to clear out Tank and to tank to transfer the oil remaining in a small settling trink.
Cross-examined by Mr. Hwitness said that the third defendant been in 7/17 years. the employ of the Company! He denied a statement mad the first defendant that it was euste to give the dregs of the oil tanks third de- fendant in return for ser rendered to the Company and to thinese staff the charge All four defendanta de After evidence of arread been given that week
week he said if he failed to get Receiver required information he seat for the case was put back further hear nasistanse here he would go to Shanghai: youf-Yes.
And you gave kim the fullest informa ing when the defen will give Later bemid, he was, going to Shanghai, and left about a week after his return tion and showed him all the books all evidence.
kopt? Yes. properly for the Colony.
Orme: Did he leave you any in Did the then. Official Receiver ever regarding the business? suggest to vou that he wanted Mr. Beau
mont or that you alwould write and ask | "
to come back to Hongkong1-No.
At the time he left had either he or you the smallest iden of bankruptcy pro- ceedings being brought -No idea.
It was quite a hombshell when ther were brought Yes.
Who was acting as Official Receiver at that time?-Mr. Melbourne
He asked you where Mr. Beaumont was-Yes: I told him, Shanghai,
In reply to the Magistrate, the witness said his words to Mr. Melbourne were
I believe. in Shanghai."
fall in exchange---Yea. to n oable was due (the witness said) trouble to the failure of San Francisco to take up certain contracts. He cabled to Mr. Beaumont and had a reply from Paris, after six or seven days, to say he was returning post haste. At witness's sug Restion, the defendant returned via San Francisco and arrived in Hengkong by the Shingo Haru, at the end of August, Mr. Russ: Did you ever write to Mr. 1820.
went into the Company's state Beaumont to say it was necessary for him of affairs very thoroughly with Mr. Beau- to come down to explain anything-No.
ont" the
#and be Could Mr. Beaumont have explained witness continued. mid he would take all
anything if he had come down I could responsibility and would see
in Hongkong. During
16 it a fact that when the Official of theft.
of daising he could do in the way have explained it, better than, he, cauld.
M
For his
Thile he was away. Thim to come
He asked me to do my best
there,
1.
EXCHANGE APRIL.
Mr. C. A. da Rozange quotations When Mr. Beaumont left for Shanghai for the month of Ape the following letter from Mr. Benumont; I had two or did Mr. Beaumont leave the bank's de-summary-
wards the end of September. I received a
three lotters from him from Shanghai. letters just inquired about the basi The
less and hoped it was getting along all Tight
"No stops were taken through vou. in any way, towards settling the difficulties of the firm -No.
The bailiff came in and nailed up the premises 1-Toer, about September 15th.
Did Mr. Beaumont send you any ad- dress to write to? I wrate to, paste ratante Shanghai or through some of This friends.
nosit receipts for £5.0001-The Nether lands Bank had ene and the Banque Industrielle had one.
the
He could have got the money, before bankruptcy proceedings, by simply, presenting these receipts-Tea.
Did he niso lava deposit receints for! 173.000 frase believe" part was un- fortunately in the Banque Industrielle
Do you consider that, at the time Mri Beaumont left for Shanghai. the firm was insolvent 1-I consider it was solvent.
-Yeg.
Mr. Bratton re-told the story of Mr. Woo's trip to Penang and the Chief Justice retorted, "What is the use of sending Mr. Woo down there after you had closed your cast,"
Mr. Bratton: It was not until we' cross-examined their witnesses that knew how to get the information.
A
If Mr.
and here." said
The Chief Justice remarked that the late Mr. Sharp, when he closed his case, stated emphatically that he closed it subject to calling an anah. Sharp had been a should absolutely the Chief Justice, decline to let him call anything more than se that."
Mr. Brutton then formally applied-and
'CTOSE
the Chief Justice made a note of the application for permission to examine the witness on the photograph and to call Mr. Woo to prove the photo graph.
Well, that is your application; as 1 said before, I must refuse, it said the Chief Justice
A few moments later Mr. Eldon Patter objected that apparently Mr. Brutton was trying to hand in the barred photograph'
10 the witneES.
Mr. Brutton: All I was putting to him was whether the entries that appear in here appear in there.
Average Rate April
(1999) (Approx 251 110.041 39 Highest Rate April,
(1022)
8.05 2/6 118 58
The Chief Justice: Either you must 25 113 53 5.000 put it in, or you cannot. I have ruled Lowest Rate A
(1922) Average Rate to d
that you cannot at this stage...
Mr. Brutton then abandoned further 56 0.29 2/1118 (1928),(Appro-2/915113/01/28.27
eros-examination of the witness. Highest
2/4 100 ́ ́ 514 6.85′ | (Continued at foot of neat column):
est
21
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[This can began in December and it piece of evidence given on January 2th, says a good deal for the care with which everyond concerned was able to furti up Judge and counsel take evidence that, the sentence and all vermione agreed. It was hinted, also, that the case is ulti- during the morning, when it was neces sary to refer to an apparently triffing mately to be taken to a higher court1]