Correct Hat Styles
SCOTT'S
HEATH'S
The adaptable brim soft felt hat that is so populär with both young and old. In light, medium and dark grey, and the newest shades of lawn and brown.
$15.00, $16.50, $17.50
The "HOMBURG"-a conservative soft felt hat with set bound brim, the binding toning with or in contrast to the hat. In many new shades of fawn and brown."
grey,
ן:
$16.50, 817,50, $25.00
ALL PRICES SUBJECT TO 10% DISCOUNT FOR CASH.
THE HONG KONG DAILY PRESS, WEDNESDAY, DECEMBER 11, 1929.
Mackintosh's
B & N LINE ROYAL MAIL STEAMSHIPS
NORWEGIAN"
MOTOR YACHT
STELLA-POLARIS
(6,000 "TONS)
Latest, Finest, Fastest Vessel Built for pleasure cruises only.
51 single rooms
74 double rooms
All furnished with bedsteads. Wardrobe for every
person.
Hot and cold running water.
35 bathrooms
Punkah Louvre ventilation.
PASSENGERS
(1st Class only) can be accepted, sailing from Hong Kong, 28th December, p.m., arriving
Saigon
31st December
£:15
Bangkok
4th January
21
Singapore
9th
36
W
Rangoon
13th
49
fi
Calcutta
17th
60
Bombay
25th
84
Aden
1st February
105
Port Sudan..
4th
114
Port Said
7th
123
Naples
14th
·144
Мопасо
16th
150
(for Puris, London, etc.)
BERTHS RESERVED
by
THOS. COOK & SON, LTD., AMERICAN EXPRESS .CO.
and
WALLEM & CO., Prince's Building. Ship's Agents.
WHITEAWAYS
MEN'S OUTFITTING DEPARTMENT
CHRISTMAS DISPLAYS
GIFTS FOR
'HIM"
'DRESSING GOWNS
In Art Silk. Newest designs
00
$35.00 to $69.*
JAEGER GOWNS Plain colour, Checks etc.
60
$39,50 to $69.50
WOOL & SILK MUFFLERS
50
$6.95 to $18.5
FABRIC AND LEATHER CLOVES
23.50 $ to 10.5oPain
$3.
THE NEWEST IN TIES HANDKIES & TIES TO MATCH, Erc,, Erc.
INSPECTION CORDIALLY INVITED:
WHITEAWAY, LAIDLAW & 00., LTD.
་་
THE CHARGES AGAINST MR. BREWER.
"I BELIEVED WHAT HE TOLD ́ME."
HOW THE BALANCE-SHEET WAS PASSED BY THE AUDITOR.
Mr. Li Tung, who audited the balance sheet of the Instone Banking Corporation, was examined at great length when he enter ed the witness-box yesterday to give evidence in the case in which Mr. Noel Instone Brewer is charged with offences under the Perjury and Larceny Ordinances in connection with the affairs of the Instone Banking Corporation.--
Mr. H. Somerset Fitzroy, Assistant Attorney General, appear. ed for the Crown, and the defendant was represented by Mr. E. Davidson. Mr. Horace Lo watched the case on behalf of the auditor,"
You have ascertained after the comparison that the balance-sheat was correct-Yes.
And you had ample time to satisfy yourself on that, point 1-I wai satisfied with Mr. Drewer's explana tion.
You had ample time during the: ten days to satisfy yourself that the balance sheet was correct 1-Yes."
And in consequence of that you' signed a statement on the balance- sheet 1-Yes.
You appreciate what the duties of an auditor are 1-Yes.
It is of great importance that ho should know what he is doing and his certificate should be truthful 1---- -Fos.
You signed the following state- ment, did you not:-"I have audit- ed the above balance-sheet with the books in Hong Kong and the re- turns from the branches. I have obtained all the information and the explanations I have required. In my opinion such balance-sheet is properly drawn up so as to exhibit true and correct view of the state of the Company's affairs according to the best of my information and the explanations given to me and as shown by the books of the Com- pany "1-Yes, I have signed such
You remember
Mr Brewer's.
Collateral Securities. Regarding this item of 8345,530 under" Collateral securities," what securities did you see Mr. Brower told me that the money was loaned to certain shareholders, and that the latter had signed some papers for them.
Did you see any of that paper 1-statement. I did.
Mr. Fitzroy produced one of the public examination 1-I can't re forms on which shareholders were member the date, but I read of it allowed to pay 10 per cent of, then the papers. value of the shares and awe 00 per Witness said cent. to the bank.
Giving evidence, Mr. Li Tung | .. said that he was aware of the fret that he was elected auditor of the Instone Bank only in May, 1928. Until then he had no knowledge that he had been elected. He had audited the balance-sheet for the year ending May, 1923, and the work took him ten days, working after five o'clock each day. The accounts were audited at the Instone Bank in Mr. Brewer's office. Mr. Brewer was present each day, but witness never saw Mrs. Brewer there.
Continuing, witness said that for the purpose of audit, he was given some books and three documents, one of which purported to be a summary of returns from thens collateral securities-I still had Shekki branch, one a balance-sheet an objection, but he said that ho WILI barrister and knew more inw of the Hong Kong office, and one a balance-klicet of the Head Office, than I did, and stated that it was After he had started his audit he legal collateral security. was given a combined balance-sheet by Mr. Brewer.
that that was the form which he
sow, and that there were quite a few of them. He added: I said these were not securities, but Mr. Brewer replied that the bank had first claim on shareholder's shares.
Were you satisfied to pass that
Did you see anything else other than those 14-No,
Do you mean to say that you only checked the figures to see that they were arithmetically correct i-
Yes.
Witness said that he checked the items by reference to the books. He did not have the Shekki books, but had seen the Hong Kong books. Asked to give details, witness said that he had seen one book, a ledger, on the desk of a Portuguese ac-
Let me take you to the other.. countant. Mr. Fitzroy invited wit-item, Stock Shares and other
Stock Shares and Other
Investments.
8.100,000.
|
เ
You had various interviews with the Official Receiver before that examination -Yes, I can remember
two.
were
On those occasions you Cxamined on many points on which you have given evidence this after-
noon 7-Yes.
Were these answers the same na you have given, this afternoon i— ho questions were not put in the
Bame way.
Did you tell the Official Receiver that the alterations in the capital were made by you 7--No,
The hearing was then adjourned. afternoon. and will be continued on Thursday
*
THE WATER SUPPLY.
ISLAND RESERVOIRS
The total storage in the island reservoirs on the morning of Mon-
1,461.37 million gallors showing a decrease of 30.43 million gallons during the past week.
The week's consumption amount- cd to 47.42 million gallons.
KOWLOON WATER SUPPLY.
ness to identify the books in Court Securities. What did that item cor-day, December 9, amounted to and to pick out the ledger he resist of 1-This item included one ferred to, but witness and he did share strip of the Instone Trading not see the book in Court.
Asked if he had made up the company to the value of about balance-sheet himself, Mr. Li Tung| said he merely audited it, finishing the work on June 6. The balance sheet showed the capital in a parti- cular way. but there was a differ- ence in the manner in which the capital was shown in a printer's proof later submitted to him. There were also considerable alterations on the credit aide.
Mr. Fitzroy: Can you tell me
how you came to sign that ?-Mr. Brewer called me over and asked më to sign it.
There are considorable differences in the two balance-sheetat-Yes, I asked Mr. Brewer about these dif-
¡ferences.
What did he say 1-He said if the capital was shown in that way in the balance-sheet it would look better.
Anything else -His further ex- planation was that before he be came a barrister he was very good at accountancy. Also he assured me that he had seen other banks and big firms prépare their balance- sheets in this manner.
Capital Uncalled. Continuing, witness said: This item Capital Uncalled" appear- ed in the nasets, and I asked him why he had included it there, and the explanation was that he had asked certain shareholders to sign application forms, and that such shareholders would be responsible for monics uncalled.
Why did you ask that question - Beenuse I knew that this item is never included in the balance-sheets of other companies.
Is it your opinion that it should not be included -I objected at the time to this form, and Mr. Brewer seemed offended.
The Mortgages.
Did you know anything about the Instone Trading Company 1-1_did not know anything about the firm, and naked. Mr. Brewer about that; and he told me that it was an im- part firm. Ho also told me that the shares were worth that sum. I asked him where the firm was situated, and he said, "Above the bank."
Did you know that the formation' of, that Company took place only thirteen days previously I only knew that the value tallied with the scrip.
You made no inquiry as to what that company was worth or what were its assets I did. ask: Mr. Brewer, and he told me that it was tegally incorporated here.
Customers' Deposits. Did you check the customer's do- posits -Yes.
How much did you find -I check- ed them from the three balance- sheets and one ledger.
In the amount made up from, the balance-sheet or partly from the balance-sheet, and partly from the ledger 1-From the three balanco- sheets.
Did you obtain anything at all from the book 1-Some portion of the total Sgure was obtained from the book.
Did you notice anything peculiar about the ledger 1-There was no thing peculiar, and I believe Mr. Brewer's accounting was all right.
Did you see the allotment books f -No.
Witness explained that he signed the final balance-sheet after it was printed. He did so at the request. of Mr. Brewer.
Was this arrangement on the balance-sheet suggested by you or was it the work of someone clɛc 1- All I did was to tudit it.
What about these mortgages t You have got on the balance-sheet the balance-sheet should be in the Did you suggest at any time that
a big amount under Mortgages and forme in which it finally appeared 1m |
Long Term Loans; did you see any No. mortgage deed at all i No. The
- Do you knew who drew it up 1– sum showing on the final balance. No.
sheet is obtained from the other Do you know who presented it to three-balance-sheets.
Why did you put your name to a balance-sheet showing mortgages
you Mr. Brewer.
4
An Experienced Auditor.
when you never saw any relied Mr. Davidson (cross-examining): on the returns, and I believed in the You are, I think, an experienced accuracy of the balance-sheet.
auditor 1-Yes.
Did you ask Mr. Brewer for any explanation 1 He said as regards the mortgages all was correct.
Were you satisfied 1-Yes, after bia explanation,
Do you fully understand your business 1-Yes.
Do you understand English book- keeping as well as Chinese 1-Yes.
You audited the books of the Instone Bank for five days, after 5′ o'clock ?—Yes.
Explanation! It was only a state ment I asked him to show me the | deeds, and he replied that some of For how long did you work every them were in the branch office, and day -Between one and two hours. that the othere were correct-
What do you mean by that?-He said the figures were correct.
Did Mr. Brewer assist you all the time 7-I referred to him when I came to anything I did not under- stand.
can't gather what you mean. You say some were in the branch office and the others were correct. Did he tell you what deeds were in the branch office 1-He did not say,
And you did not pursue the He asked me to do so,
You conducted the audit yourself. Yes.
Why was it necessary to conduct the audit in Mr. Brewer's room 1-
matter further -When he told me | I put it to you that you did it the figure was correct, I did not in the secretary's room 7-No. parsue the question further.
What it comes to is this, that you accepted his word that the thing was correct, and you saw nothing 1- I believed what he told me was
And you saw nothing but the second balance-sheet 1Yes,
At the end of the ten daya you: were thoroughly acquainted with the books of the bank No, not all
"Not in ten days I had only scen books which had connection with the
You did compare the books with the balance sheet 1-Yes.
The total storage in the mainland reservoirs on the morning of Mon- day, December 9. amounted to 480.00 million gallons, shewing a decrease of 6.61 million gallons during the past week.
The week's consumption amount- en to 27.11 million gallons, not in cluding 1.79 million gallons supplied to water boats at Lai Chi Kok.
The yield from the Shing Mun. River and streams during the week is 22.96 million gallons.
K. M. A.
CERAMIC & REFRACTORY PRODUCT
CLINKER, PAVING, BUILDING
& FIRE- -BRICKS
STONE-
-WARE
PIPES &
GLAZED TILES
Ask for our Mlustrated Catalogue-Compare our Prices"
al
and Inspect our wide Range of Samples
THE KAILAN MINING ADMINISTRATION DODWELL & CO., LTD., Agents, Hong Kong.
此四時 運不窮
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CATHAY HOTEL
THE BUND
THE MOST MODERN
HOTEL IN CHINA.
SHANGHAI
214 ROOMS AND SUITES, EACH WITH PRIVATE BATHROOM.
HOTEL RESTAURANT with Spring Dance Floor opening on to the Roof Terraces.
"TOWER" a la Carte. RESTAURANT on the Ninth Floor.
BANQUETING and PRIVATE DINING ROOMS on the Tenth
and Eleventh Floors.
E. CÄRRARD, Manager."
CABLE ADDRESS :-
"CATHOTEL,
SHANGHAI.