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SPECULATION IN SHARES. FURTHER EVIDENCE BY BROKERS. INTERESTING LEGAL ARGUMENTS AROUND ANCIENT ENACTMENTS.
The hearing of the petition of two brokers-Messrs, P. M. N. da Silva and
A. Razack-for a receiving order against Mr. S. Greenfield was continued Yesterday before the Chief Justice (Sir William Rees-Davies.)
W
Mr. C. 1, Alabaster. E... is for the petitioners and Mr. Elsley Zeitlyn for the defendant.
entered into contracts to sell Mr. Mohi-
THE HONGKONG DAILY PRESS, WEDNESDAY, NOVEMBER 15mm, 1922.
In reply to further cross-examination, witness denied that the transaction was looked upon sa a gamble between them.
"THE INFAMOUS PRACTICE OF STOCK=" ZOBBING."
Counsel went on to quote yhat ho At first he did expect delivery. In reply described as the refreshing and un- to other questions, witness said he knew mistakable language of an Act of Mr. Greenfield had no shares at the George II., passed in 1743, which waa said highest price they touched: the highest in ite preamble to be "on Act to prevent the infamous practice of stock-jobbing." Counsel read at length from this verbose enactment, which begün:
was $33.
..
PRETTY HOT PLACE.'' Later, Mr. Zeitlyn made a reference to the cool and refreshing shade of Ico 'House Street," and Mr. Razack retorted, I don't know about it being cool and refreshing; I find it a pretty hot place at
times."
"Not a very cool and refreshing place for a mau who is bearing shares, I sup
cse," remarked counsel.
"Whereas' great inconveniences have arisen and do daily arise by the wicked pernicious and destructive practice of stock-jobbing whereby many of His Majesty's good subjects have been and are diverted from pursuing and, exercis ing their lawful trades and vocations to the utter, muin of theruselves and families to the great disconragement of industry and to the manifest detri ment of trade and commerce.... be it enacted, etc, etc."
Mr. Zeitlyn remarked, in regard by one clause of this Act, that the framers, of
STEAMER STRANDS IN THE WEST RIVER,
REFLOATED AFTER LIGHTENING OARGO,
The 8.8. Helios, a Chinese owned steamer of 880 tons, went aground in the West River on Armistice Day. She was re-feafsd the following day after part of her cargo had been taken out, and pro cooded to Canton where the balance of her cargo, has discharged. No damage was done to the vessel and she returned to Hongkong yesterday morning.
The skipper of the Helios is Captain Lobay.
MARINE COURT GASES. OBSTRUCTING THE FAIRWAY.
The mistresses of three cargo boats were
Mr. M. A. Razack was the first witness. called yesterday. En said that. Mr. Greenfield told him he had shares but he would rather sell forward because he
Mr. HA. Lammers was the next wit could get a better price. On June 21st,
ness. He said that on September 28th"be Mr. Greenfield instructed witness, to sell
saw Mr. Gecenfeld at his shop and asked 6,000 China Providents at 81170, Septyn
for delivery of 1,000 China Provident the nwasure secuted to have had a vision fined $10 each with the alternative of 14 ber delivery. On the same day with shares. Mr. Greenfield told him he had of the future, and of stock-jobbers telelays imprisonment by Commander C. W. deen 3.000 and Messrs. Fung Tat Hang no shares. Witness said he was not sure phoning from jöweller's shops urging Beckwith, RN, at the Marine" Magis- |
someone to buy China Provident shares. tracy, yesterday, for unlawfully anchor- Another clause imposed a penalty of 5000 ing their boats in such a manner as to on the parties to stock-jobbing con- cause cbstruction" in the eastern fairway tract, half to the King, his heirs and
of the harbour. assigns and half to him, her or them whó may sue for, the same." This gave a right of action to the common informer and counsel remarked that a very large sum of money might be recovered there- ander,
He received instructions & ('6. 2,000. from Mr. Greenfield on Jung, and to sell a further 1,000 at $12... On the same day witness entered into other contracts for $500 each with Mr. Mohideen and Messrs. Fung Ta Hang & Co. Mr. Greenfield made up secret of the fact that he was selling China Providents. He said he had been selling to other brokers at different
ratex.
whether Mr. Greenfield said he had been promised or had bought 10,000 shares in the middle of June at a price somewhere round 11. The person from whom he was supposed to get the shares had not given delivery. Witness remarked that surely, Mr. Greenfield had something in writing, and debtor replied that he had no letter or contract; the man had put him off from day to day.
PECULIAR CIRCUMSTANCES,
Witness then aid to Greenfield, It will be rather peculiar if this ever doos go to Court and you can get anybody to believe that statement of yours: You take jolly good care wher you lead money that you get a promissory note even if the amount is only $. This is a matter of over a lakh and you did not take the trouble to get anything in writing about it." Greenfield scened quite cool and
Mr. Greenfeld told witness in July--when the shares were aliout $16. that he had bought 13.000. Mr. Green- field said he was very much relieved. He had bought 9,000 from Mr. Laminert and 4,000 from Mr. Edwards. On September 5th, witness instructed Messrs. Deacon, Looker, Deacon & Harston to give him the 48 hours' notice required by the con- tragt. Mr. Greenfield failed to pay the sum required. He told witness that be had not got a share. On September th witness bought 6,000 China Prvidents' it '$31. As a result of those transactions, * Mr. Greenfield was indebted to him for 8117,396, of which, $1,800 "wag brokerage, On September 20th, witness saw 3r. Greenfield at his shop. Mr, Greenfeld'
broker any instructions a client had said he had no shares, he had no money to pay anyone and he was not going toen him, either to buy or sell
pay anyone. All the brokers could have his business..."
SEALES SURE TO FALL" Alr. Zeitlyn: The letter you seat your solicitors contained a purchase note which required Mr. Greenfield's signature!
Witness: Yee.
And he returned it to you unsigned 1-
Yes.
Did you tell him these shares had never been over 810 before-I told him nothing
of the kind,
"That this Company had never paid 8 per cent. --Nothing of the kind.
+
shrugged his shoulders. Then he said: "I'm bankrupt, take my factory, take my shop."
*
Mr. Zeitlyn: Do you agree with ma that it would be an outrageous breach of
i
The Judge: Putting it shortly, the effect of the Act is to make all wagering in connection with stock exchange deal- Ings illegal.
Mr. Zeitlyn: Not only void, but the subject of a penalty, and nothing in any one of the Ordinances of this Coluny has in the slightest degree modified it, affected it or altered it. Until this very hour it is the law of this Colony. This Act of George II. makes the petitioners' 'enden- our to get the process of this Court an utter illegality, and subjects them penalties.
to
The Judge: Mr. Alabaster contended
"י'
Sergt. Mason said the anchored junks practically closed the fairway to traffic He"experienced considerable difficulty in inspecting the defendants' licences.
THROWING ARTICLES OVER-
BOARD."
Sergt. Carey on approaching a passent- ger sampan the other day saw two women scramble into the hold and a few seconds later a large box was thrown overboard. If Boated towards the shore and snak. He arrested the junk mistress on a charge. of throwing articles overboard for the purpose of "preventing geizure. In the small hours of the fallowing morning he saw some of the crew of the junk search- ing the spot as if trying to locate the box. The arrested woman was brought before Commander C. W. Beckwith, RN at the Marine Magistracy, yesterday. Sho
duty for any broker to tell any other that the Ordinance of 1801 modifies the denied an allegation put forward by law as to gambling. I would like to hear Sergt. Carey in his evidence that her boat what you say on it.
Certainly.
Mr. J. Grosgate evidence to the Rect that he sold 2,000 China Providents about Juno sth for Mr. Greenhill, for cash.
This concluded the case for the peti- tioners.
THE DEFENCE.
Mr, Zeitlyn, addressing the Court for the defendant, submitted that the petition must be dismissed. The law required that a person presenting a bankruptcy petition must be a person entitled to a liquidated sum. Mr. Zeitlyn said that,
ested.
Me Zeitlyn: am very mitch obliged to your Lordship for drawing my atten tion to it submit it applies only to games-horse reing, football, cricket and so on; and bas no bearing in this connee
1101..
MR, ALABASTER'S REPLY.
was seen to leave the side of the 8.8.
Sam Shui Po when arrested. Teuser. She said she was sailing from
Whether the police recovered the box: and what the contents were the evidence did not disclose.
Commander Beckwith ined the woman, Replying, Mr. Alabaster said he would$25 with the alternative of one month's deal first with Mr. Zeitlyn's third point- illegality under the gambling laws. The prisonment, Act of George II., 1743 was limited to speculation in public funds and securi A NIGHT CHASE ON THE HARBOUR. tics, joint stock companies, and other public securities whatsoever." This was
41
With a head-light faintly glimmering
in his submission, the gentlemen whose stated very clearly in the authorities and and no side lights showing, i motor-boat petition was before the Court were not he was surprised they had received no put inte Shaukiwaa Bay on the night of such persons because, from the evidence comment from his learned friend. Did you tell him that these shares were of Mr. da Silva particularly, they were friend said it was perpetual," added Mr. to come alongside, but, instead of obeying Mythe 7th. A police-launch hailed the boat. sure to fall -Nothing of the kind.
When you came to him you were anzi guilty of a gross breach of duty to their Alabaster, but it was repeated in 1860, the command, a voice from the motor boat olient entailing heavy damages and which and never had any application to transie was heard to cry out "has " (speed-up). ous to do business-Naturally.
And it is natural to make some state-disentitled them to the process of the tions of this kind."
A chase ensued and the motor-boat was ments to induce business-Not neces-They had heard from Mr: Razack-less Act still applied in Hongkong,
court in its bankruptcy jurisdiction. Mr. Zeitlyn was understood to say the captured some distance to the south,
· Farily..
During the chase Sergt.. Carey saw things I put it to you, you told him these extracted from him in cross-examination amble, which my friend read with such boat.
Creadily acknowledged-but-nevertheless Mr Alabaster In spite of the pr being thrown over the side of the motor- things I didn't,
As a result of that he agreed to sell that it was told him by other brokers gasto, Mr. Justice Lindley has delivered. The man in charge was arrested and 1.000 shares-Nothing of the kind, He telling other brokers that he was inter this, however demoralizing and repre- at the Marine Magistracy. They were: and be had reciprocated the confidence by himself as follows: "Such gambling as three charges were preferred against him sold 6,000 shares; that was on July 1st..
Did you ask him on that occasion whe
hensible, does not appear to me to be (1) for failing to stop when called upon ther he had the shares-He gave me to
His second point was thas there was to illegal. Even when the Act was in force to do so; (3), for unlawfully, for the par understand that he had cash shares but act of bankruptcy-no statement such as gambling in shares and foreign stocks pope of preventing seizure or discovery, be wished to sell forward so that he could would amount to a declaration of insol was held not to be illegal, either under throwing articles from the motor-boat; vency Counsel argued that a statement the Act or at common law. Baron Parkes (3) for failing to carry the necessary * get better rates.
act of bankruptcy; notice of insolvency which one was got in possession was "not of inability to pay did not constitute an held that contracting to sell goods of regulation light must be given formally and deliber a wager, not against public policy and Did you on the same evening ring himately, and with the intention of giving had no tendency to injure the public." such notice," to quote a judgment on the up-I did. The witness said he rang the
point. debtor up from Mr. Mohideed's, the same The Chief Justice: If there has been Raviering local gaming legislation, Mr. spot. He had to do as he was told.. Ho gentleman with whom he entered into n
no act of bankruptcy, there is an end of Alabaster said that, in 1891, all existing did not throw anything overboard. contract to sell-3,000.
The Magistrato: In view of the many Gaming Acts were repealed and the law robberies now taking place in Hongkong, Mr. Zeitlyn went on to emphasise the was consolidated into ono measure.
Mr. Zeitlyn: I put it to you, you urged toward and outside reditor as a stock shares. That made every contract, for the the defemilant to one month's imprison- ary" way of business and "such an un- (No 5) to restrict forward speculation in find the first and third charges proved. I dismiss the second, charge. I sentence him to sell more; that the price was broker between whom and the debtor a sale of shares in any joint stock company ment with hard labour on the first chargo big one and it was "bound to fall - Nothing of the kind,
gambling transaction has taken place,” null and void, unless the contract note Mr. Zeitlyn asked for an indication from
Having dealt with his first two points, set forth the identification Jumbers of and a fine of $50 on the third charge. the Judge as to whether he had satisfied the Court and need not go on to his third point
I put it to you, that is wholly untrue
I say it is true; I am speaking on my
oath,
In reply to further cross-examination,
the case.
LOCAL LEGISLATIÓN REVIEWED.
. In
The defendant, Leung Tai Yau, said he was not the coxswain of the boat. He had been ordered by three strange men to take the boat out and to take them to a certain
witness denied that he urged Mr. Green-distinction between creditors in the ordin- that year was passed on. Ordipanas I take a very serious view of the case,
field to sell more.
Didn't you tell Mr. Greenfield that the brokers, were betting fifty to one that Mr. Greenfield pouldn't deliver one share or settlement day1-Not a word of it.
Did the brokers bet at all on the poasi- bility of delivery 1-Not that I know of
....... You didn't.. bet 1—No
You knew in the middle of July that
he couldn't deliveri
Witness replied that Mr. Greenfield had told him that he could cover all the
•bare.
"
THE SHARES SKY HIGH.”
the shares sold, Such a measure should prevent a man from selling shares he did not possess, but the Act do which it was based was treated as a dead latter, at The Judge: Mr. Alabaster in entitled Home, and the Ordinance was treated, as to be heard on both these points; they are such, here, until it was repealed, last year, points of law not fact Supposing I am by Section 4 of the Stamp Ordinance. against you, do you wish to call evidence? Where & contract was made through a Mr. Zeitlyn: No, if you are against broker, who had to enter into other con
propose to direct attention to my tracts, none of the Gaming Acte had any third proposition-a most irresistible con application:" tention that this was an illegal transac tion.
EXHUMING THE DEAD.
UNUSUAL CHARGE AGAINST A CHINESE.
An unusual case of removing the bones of a dead relative without the sanction of the Sanitary authority was mentioned before Mr. JR. Wood at the Magis tracy, yesterday.
As to Mr. Zeitlyn's second point, relat- ing to the nature of an act of bankruptcy, According to Inspector. Thompson, the The Judge thought that time would be Mr Alabuster said the case on which Mr. defendant & Chinese, obtained permis saved, ultimately, if counsel addressed Zeitlyn relied had been severely discredit sion to exhume the remains, but did not himmlf, then, to the rest of his argumented in subsequent cases Counsel was have, the boner oxamined, in compliance about to quote from a volume entitled, withhe usual: procedure adopted by the "Digest of Cases Over-ruled or Adversely Sanitary Board, before they were remov Commented Upon," when the Court roso ed. for the days go ba
1
It is significient that about the middle of July these shares rose sky high. I put it to you, that it was as a result of the statement made to you by Mr. Green-
THE CONTRACT: VITIATED BY THE field in confidence, that he had not these gharen, that it was a result of you telling
CONDITIONS.et other brokers that you were interested, Mr. Zeitlyn went on to suggest that the that these shares began to rise #sky contract note between the parties was high" Nothing of the kind. I told novitiated by the conditions printed on the brokers the number of shares he had sold back that, no Court would, enforce such MISS SUZANNE LENGLEN ON THE
ina.
pe, wituase added that the brokers knew he was interested, Mr. Greenfield was blowing his own trumpet!!!
an utterly unreasonable condition as the
one calling upon the seller to furnish
BUREEN."
11. Pinagimia").
cover when "al ren rose in valtter The The last exhibition of Miss Suzanne
exercise of this, clamp, was evidens that Lenglen's ability as a tennis player takes
The Magistrates Is there any condi tion on the permit to that effect1gt The Inspector: No; it is not mention- od thore.
The Magistrate: Discharged; no case,
Mr. and Mrs Edward Bell are arriving
Hr Zeitlyn You agree with me that the transaction had been a gambling one place on the 16th inst, at the World in Shangha on November 23rd, on the it would be an outrageous breach of dutyd initio. If it were not, the purchaser Theatre There are a few vacant seats President on Mr. Bell was formerly for a broker, to tell other people what would have to wait for the period of left for Thursday, and those interested In U.B. Chargé d'Affaires at Tokio and orders client had given him to buy or delivery to mature and then neck his the game should not miss this last oppor comes out nowa Councillor of the US. nell 1-Certainly,
tunity of seeing this great player.
remedies,
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