A few suggestions Silk Tice and Handkerchiefs,
singly or in esta Silk and Knitted Wraps and Scarfs Dressing Gowns
Bath Gowns Slippers
Socks and Golf Hore Braces
Gifts
"that live longer than a day” THE pleasant custom of gift
making at Christmas provides an admirable means of expressing one's friendly wishes in durable from, though one sometimes finds it a little difficult to hit upon exactly the right choice for the masculine portion of your list.........
Your problem, however, will be much simplified if you make your selection at Mackintosh's for there you can see the very articles which men would choose for themselves.
To choose wisely is to enhance the satisfaction you derive from It will be a pleasure to giving. show you our Christmas selections, and to offer assistance in making such a choice...
THE HONG KONG DAILY PRESS, TUESDAY, DECEMBER 17, 1929.
Mackintosh's
A visit to us entails no obligation whatsoever.
Why is it that the Army, the Navy, and Hospital Authorities of Great Britain and U.S.A. always specify Horlicks Malted Milk?
Always
They know it is the original-and found it to be standard. ahiform-does what it claims-and everyone likes it.
It is, however, a little more expen- sive than any of the other similar- ly-nameri preparations— but with Horlicks, Well! it's Like Bank of England, Nole-worth the money.
LANE CRAWFORD'S
CL
CAFE
ALWAYS SERVE HORLICKS.
THE
BOY SCOUTS ASSOCIATION
Under the Distinguished Patronage of H.E. SIR CECIL CLEMENTI, K.C.M.G. Chief Scout of Hong Kong,
COMING-OF-AGE
A GRAND CONCERT & DISPLAY
will be given in the THEATRE ROYAL
On SATURDAY, 21st Dec., 1929, at 9.15 p.m. The Proceeds will be devoted to the Salwan Bay Camp Fund. Reserved Seats: $2.00. Unreserved: $1 & 50 cents. Unreserved Seat Half Price to Service men in Uniform. BOOKING AT THE ANDERSON MUSIC CO.
THANK
This might be your house! Insure your residence against Fire
with
INSTONE BANKING CORPORATION,
"VERY BAD ACCOUNTING.”
MR. S. H. ROSS'S SEVERE CRITICISMS.
The proceedings at Central Magistracy against Mr. Noel Instone Brewer, who is charged under the Perjury and Larceny Ordinances in "connection with the affairs of the Instone Banking Corporation, were continued before Mr. A. W. G. H. Grantham' yesterday.
Mr. H. Somerset Fitzroy, assistant Attorney-General, prose- cuted and Mr. E. Davidson appeared for the defence.
Mr. M. K. Lo watched the proceedings on behalf of the auditor, Mr. Li Tung
ALLEGED IRREGULARITIES.
Mr. S. H. Ross (chartered ae; countant of Messrs. Percy Smith, Seth and Fleming) who gave evi
the directors of the bank must have known that the shares of the bank were worth nothing and
conse-
ROUND THE COURTS.
BANK CLERK SENT TO JAIL,
SAMPAN CONFISCATED.
On the application of C, P, 0. Clarke passenger | sampan 938 V.Y., was ordered to be confiscated
Mr. Hamilton.
It was stated that on December Pedro Nolasco, a clerk employed, the mistress of the sampan was a: the Netherlands Bank was con- convicted and fined $13,000 or one victed by Mr. A. W. G. H. Grant-year's imprisonment for possession
of 400 taels of raw oğlum and 30.1 ham at Central Magistracy yester-taels of prepared opium on board day on a charge of forgery of a her boat. document involving $138 from the bank. A sentence of six months' imprisonment was imposed.
OBJECTION TO DYNAMITE
IN COURT,
HOW HEROIN, PILLS WERE
FOUND,
THE BROKEN BRIDGE.
REPAIRS ON CANTON-KOW. LOON RAILWAY TO WAIT.
Railway communication between Canton and Kowloon is still inter- rupted. According to a vernacular report it was originally decided by the Chinese authorities to repair the bridge at Shek a without delay, but as bandits might destroy the bridge again no work will be taken in hand at prescat. When the situation becomes quieter the work will be done.
It is reported that the damage to the bridge is so slight that it will take only a few days to put everything right.
The mistress of a junk who is charged with unlawful possession of cases of heroin pills containing 200,000 pills, pleaded guilty when charged before Mr. T. S.' Whyte Smith yesterday.
The case was adjourned for thetonators, said 'that he required, then
from the Government for protection against pirates.
Mr. E. W. Hamilton objected to the presence of a quantity of dynamite in Court as evidence of report
a fishing jank in Analyst regarding the nature of the His Worship in imposing a fine sciture on
pills.
Jef 820 remarked that it would be Aberdeen Harbour, and remarked
Detective Sergeant Fitches said very dangerous to himself if he used
dence at the last hearing, was re- quently the shares in the Instone that the explosive should be left that the information on which they dynamite to frighten off pirates!
called.
Answering Mr. Fitzroy, witness said he was an experienced nuditor and would not have passed the $1,420.950 as uncalled expital. The statement in
correct.
Trading Company must be worth nothing,
Regarding 4.800 shares in Mrs. Brewer's name, the allotment, said witness, was made on June 21, 1927,
outside the Court under guard,
AN AGED OFFENDER.
the balance sheet A payment of $48,000 was made, but on his boat. The police officer who formation and threatened that if convictions in 1900 and 1930 for
showing this sum under the heading of called Capital" was, in
The books showed the value of the unallotted shares in theShare Capital account, In November, 1927, it was transferred out of Capital Account to Allotment and Suspense Account. In spite of that it was still included in the Uncalled Capital Account. Nothing had ever been paid on the shares, as far as witness could say. There some application forms in connection with it, all dated July, Adgust or September, 1997. These were not completed, and were evi- dently regarded as doubtful, hence the transfer 10 "Suspense count.
were
ac-
One of the biggest of these ap plicants was Kwang Hot Tin. One thousand shares belonging this per son were forfeited; this being stat ed in the books of the bank. These
forfeited shares were included in the accounts although they were never an asset, and it must have been obvious to those who drew up the balance sheet that they could not be realised,
Regarding the item accounts re ceivable entered among the assets nt $221,360.87, this actually can- sisted of 113,000,-which was 10 per cent. of the uncalled capital. This again was not an asset.
Collateral Security Loans.
Coming" to collateral security
Or
this was only a cross-entry against the bond-selling goodwill refunded to the Bank by Mr." Btower. June 28 Mrs. Brewer had a loan of $430,000, so that the shares became fully paid up. These shares were transferred to the Instone Trading Company for 8415,000.
-Witness said the Customers' De- posit were overstated by $250,000.
In filing the Statutory report it was stated that the total number of shares issued wholly for cash was 8800,000. The statement was wreng, in witness' opinion.
acted was so vague that after two A ñsherman was charged with hours search nothing could be possession of the dynamite, two found. The police returned the rifles and 30 rounds of ammunition next day with more definite in- the drug was not given up every prosecuted informed the Magistrate that it did not appear to be a case of serious smuggling and the Police were not pressing the case.
A aggregate fine of $100 or three nonths imprisonment was imposed.
(Continued on nezt Column.)
correctly-appreciate the finer points, but anyone should be able to read a balance sheet. An ordinary business man should be able to read the balance sheet.
You have told us that uncalled capital should not be shown as an The Nature of "Payment in
asset or liability 1-1 think I said Oash."
uncalled capital on unallotted Mr. Davidson preceeded his cross-shares. examination by telling Mr. Ross Rut that, of course, is a matter. that he would not quarrel with the of accounting only 1-It is more than latter s to the question of ac that. counts. He was prepared to agree anything regarding accounts from
Mr. Ross.
Regarding the Statutory Report, Mr. Davidson said that they were only concerned on the question of whether it was or was not a per- jured report. In point of fact, asked Mr. Davidson, when shares are allotted in practice, no cash is received at all?
Witness: 1 don't agret with
you.
Mr. Davidson asked if allotments were not frequently paid by cheques Fand occasionally by bank notes, but seldom or never in, hard cash! Witness agreed that hard cash was seldom used.
In fact, asked Mr. Davidson. cash in the literal sense of the term is never used 7"
Witness: Yes,
I is, therefore, a matter ef opinion as to what constitutes payment in cash Yes.
咒
loans, witness said that so far as he had been able to find out there was no such security, barring the application forms above referred to. Mr. Fitzroy handed a number of these forms to witness and asked if there was any record of the loans being paid. Witness replied that no payment had been made, beyond Mr. Davidson explained to wit the five or ten per cent, depositedness that it was not a question of at the outset. The total amount of whether the Instone Bank was pro- loans granted to shareholders was perly conducted or whether it was 8701,100 of which 8432,900 wash sound financial concern. Rightly granted to Mrs. Brewer. There was or wrongly the method adopted by no collateral security whatever and the bank was to invite shareholders the statemen: in the balance sheet to make payments in advance of regarding such security was false. calls and then money was lent to As an auditor, witness would re-shareholders for the balance of the gard such loans as unsecured loans.shares..." That" asked Mr. David- The Company only had 20,330 cash son, I put it to you, was the in hand on June 1, 1927, although transaction shown by the books?" on paper it bud, leat $781,100. Witness: I can't agree that they These loans were made in June paid the money and that it was and July, 1927, but during the whole lent back to them.. of that time they never had the
I am not asking you to say that. cash in hand, so that the loans It was treated in the books as if were n physical impossibility! The that had been done 7-Yes. Corporation only had about $80,000 The result was that instead of in June and July, 1927, all told. having a right to make a call on They never had the money to make the shareholders, the Company got the loans. They entered up certain definite promises to pay on demand i money in the books as received-Yes.
against share capital and the same Assuming that the shareholder amount paid out as a loan. There was a substantial person the Com was no "collateral security or loan. pany had a slight advantage in being Mortgage and Long Term Loans able to say to him "We want your appeared to be false as witness money now instead of having to found no mortgage form at the make a call --Yes.
bank. The amount of $200,030 was Mr. Davidson next asked witness made up of several small items and if it would be a cash transaction if one big one of $200,000 owing from the Hong Kong, branch," This was not a mortgage but merely a cross- entry in the Hong Kong branch books. That sum could not be classed as an asset.
Speaking of Stocks, shares and other investments (8181,831.50) wit
mun paid cash over the counter for his shares and the next moment got his money back and signed an agreement to pay it later.
Having signed the agreement, Mr. Davidson pointed out to witness, the shareholders would be justified to claim that he had paid in cash. ess said this comprised $315,000 Mr. Davidson went on to say that in the Instone Trading Company. in law, in a transaction of such a Purchasing a goodwill in a bond character, the cash transaction selling business cost 360.793.00. could be dispensed with. He went Witness said that goodwill should further to say that any transaction not come under "stock share and which would support a plea of pay other investments." That Was ment in cash was a cash transac- wrong. However, against this sum tion. 855,000 was refunded and the entry against the goodwill, should not have been $69,793.co but only $14,000
odd.
Witness pointed out that he did not think the transactions of the Instone Bank were cash transac tions. The books. of a company should recom the transactione Mr. Brewer, and the Instone Trading which have taken place and to say
Company.
that the Company received and paid Regarding shares in the Instoneway $750,000 on the same day to Trading Company, witness said the the shareholders did not seem to Company was formed thirteen days him to be genuine cash transactions.
before the balance sheet was minde out. They owned 4,600 shares of the Instone Bank, transferred to them from Mrs. Brewer.
Bad Accounting Only? ** Coming to the balance sheet, Mr. Davidson asked if it was not a The actual market value of the document of great complexity. shares in the Instone Trading Com-Witness said he did not think so." pany was not stated in the "books.
It is a document which surely
Assuming that the whole property requires an expert, to read it 3-1
of the Instone Trading Company don't think so.
THE GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORP., LTD. Bank, the Company would be worth correct balance sheet --If you were
For information apply
"AGENTS":
J. H. BACKHOUSE, LTD.
TEL. No. 1785.
was 4,500 shares in the Instone Do you suppose. I can prepare a
nothing as the assets of the Inatone a book-keeper you could." Bank at the time were such that A book-keeper has very special they wore. not more than suficient training 1-Yes.
to pay their creditors. The bank
an inspection of the balance sheet
You require a certain amount of
(Continued on next Column:)
What is it then 1-You should not
show uncalled capital as an asset.
I admit it is bad accounting, but you are not going to say it is per jury-It is misleading.
Would it be misleading to any. body who understands a balance sheet -One assumes that it is worth the money showing on thë balance sheet.
I may say that to put uncalled capital on the balance sheet is nerely accounting-It is very bad accounting,
Mr. Davidson asked witness if he 1543 aware that regarding allot- ments. it was in the Articles of
association that payment should
not be less than 5 per cent., of the nominal value of the shares 7 Wit- mess agreed, --
Mr. Davidson asked whether if shareholders were responsible and liable for the balance on the allot- Dents it was not untrue to insert them in the balance sheet?
Mr. Ross said that even if they were liable it should not be put on the balance sheet.
Mr. Davidson: I admit that it should not have gone on the balance sheet. I say that if these people were liable then it is not untrue to put them in the balance sheet.
Witness: It is not untrue.. The hearing was adjourned.
A Chinese of 75 years of age with
stealing, appeared before Mr. Whyte Sraith for taking an iron bar from a contractor's shed. The de- fendant's present occupation was begging at Shum Chun.
A sentence. of one months' hard. labour was imposed.
Defendant said that his wife was so and blind.
BRIGHT SCHOLAR,
panel in the living quarters would be broken. The woman pulled away apanel which concealed the drug.
The Magistrate remarked that he would like to hear more about the pills as he wanted to know how many would constitute & fatal dose, The charge was brought under the Dangerous Goods Ordinance and sentence depended on the strength of the pills. They might be per-
A Chinese youth who was charged pectly harmless.
with stealing 817, was described by The defendant was remanded.
his grandmother 25
a bright TO DYNAMITE PIRATES. scholar. It was stated that the de- »
fendant was caned in October and A master of a fishing junk who again in November. The Magis was charged with possession of 13 trafo ordered the bright scholar to sticks of dynamite and four de-jail for three months' with hard
(Continued on next Column.) labour.
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EDGAR W
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BINNIE HALE
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WHY, OF COURSE !!!
I'll take her to
LANE, CRAWFORD'S
to Tiffin.
A cut from the appe-
/
tising joints one sees
there, carved before
one's eyes, would please
the most fastidious.
And the sweets !!
The new dishes I've tasted there recently
are delicious.
She'll love them !!!