RUSSIAN BANK'S ASSETS.
CLAIM BY 'SHANGHAI CREDITORS.
APPEAL BEFORE FULL COURT..
SIEGE OF NANNING.
ATTACKED ON TWO SIDES.
REPORTED EVACUATION OF
KWEILIN.
According to a Wuchow report, the Kwangsi insurgents have A sum of $300,000 left over as evacuated Kweilin but the Can- assets in the Hong Kong branch tonese, forces have not yet entered of the Russo-Asiatic Bank, which the city as it is reported that the weat into liquidation following evacuation proved to be a plot Soviet decrees, formed the subject of arguments in the Full Court of Appeal yesterday before Sir Peter Grain, Sir Joseph Kemp and M. Justice Wood,,·
It is claimed on behalf of the
appellants, who are Shanghai ere- ditors, that the London creditors have no right to the money since it belonged to the Far Eastern Group with its head office in Shanghai, formed subsequent to the
confiscation of the branches in Russia. Another point raised is that, assuming the back had not been dissolved, the assets" should be diverted to the original head office which, it is contended, is in Paris, for distribution.
HONG KONG DAILY PRESS, TUESDAY, JULY 29, 1930.
MUI TSAI TAKEN TO SINGAPORE,
HEAVY FINE IN KOWLOON
CASE..
S.C.A. PROSECUTES UNDER"
NEW ORDINANCE.
Failing to comply with the new Ordinance which requires mui trai to be registered at the Secretariat for Chinese Affairs; Ko Shi, a to inveigle the Cantonese into an ambush. A number of Cantonese widow living at 49, Apliu Street, was charged before Mr. Whyte aeroplanes are flying over the city daily for reconnaissance and bomb-Smith at the Kowloon Magistracy ing purposes.
Nanning, the provincial capital of Kwangsi, is being besieged by the Yunnanese from the west and hard-pressed by the Cantonese from the east. The city is defended by about 4,000 Kwangsi troops and the people's militis, commanded by Wei
Yun Chung.
Gallant Defender. The Yunnanese troops recently addressed a note to Wei asking him to surrender the city in five days, but Wer instructed his troops to defend the city at all costs, assure The appeal is against a judging them that 3,000 Kwangsi troops ment of the former Chief Justice have been dispatch from Linchow (Sir Henry Gollan) who found that by Wong Shiu Hung to assist them. ia law the bank had not been dis The headquarters of the Kwangsi solved because there was no wind-rebels are, at Liuchow, where Li ing-up in a Russian Court, and Trung Jen, the rebel leader, is stay ordered that the money should go ing. to the London creditors.
Mr. Eldon Potter, KC., with Mr. H. G. Sheldon, are for, the appellaats (Shanghai creditors). Mr. F. C. Joakin is for the London
creditors.
1
Mr. Potter said his submission would be that after their Lordships had heard the facts and the law, they would order an adjournment
in order that further inquiries might be made with regard to the posi- tion of Paris as the head office of the Company.
Counsel continued that the case was absolutely unique in the his- tory of Company Winding-Up Law. The position of the appellants had been throughout that they were endeavouring to put what they con ceived to be the true case and nothing "more.".
yesterday. The defendant "argued that the 13-year old girl in question. had been adopted as a daughter by a relative and that she was not a
mii tani.
The case was the first one of its kind in Kowloon Magistracy, when the S... brought the summons under the Registration of Mui Tsai Ordinance.
REPORT ON HONG KONG CURRENCY.
(Continued from Page 6.)
We recommend therefore that all available data should as soon as possible be placed before expert opinion with a view to the formu lating and having in readiness a feasible scheme worked out in detail whereby the transfer of the Colony's currency from a silver to a gold boats may be effected as smoothly and with as little trouble. and expense as possible, in case a sudden change-over be forced upon the Colony.
Although it is premature at the present stage to indicate what gold-currency unit should be adopt ed by Hong Kong, our close. Busi ness relations with China require us to stress the advisability of this Colony adopting a monetary unit
commend the establishment of na Advisory Board that could in a time of financial crisis advise the i Government (and, incidentally, the note issuing banks) what steps should be taken to meet the situa- tion.. The fact that the Colony would, then be prepared for so emergency by the existence of a body of experts (some of whom at least would be disinterested and independent parties) ready to study any problem and explore all for remedial measures, would be sufficient justification for my recommendation.
Avenues
I should mention that the pro- psal to institute this Board has the support of two other members of the Committee.
In view of my recommendation, I am unable to subscribe to the view expressed in the last sentence of thus be adequately safeguarded -- paragraph: "The public would unless it is modified by the addi- tion of the words: but in the opinion of three members of the
Advisory Board is necessary for Committee, the establishment of an full security."
Stabilisation.".
the question of the stabilisation of
My second reservation concerns identical with that of our neigh tours, following the example set in the dollar. While the other mem- this respect by Canada with re-bers of this Committee advise in
America.
In opening the case, Mr. Jgard to the United States of paragraph 36 that all available data should be placed before. Barrow, of the S.C.A., said that In conclusion we desire to add expert opinion with a view to the as a result of information received that, since our terms of reference formulating and having in readingss a feasible scheme... Whereby the the mui tani and her mistress (the conaned our enquiry primarily to
a consideration of the effects of the transfer of the Colony's currency defendant), werd nåked to call at Colony's currency upon trade, we from a silver to a gold basis may the S.C.A. It would appear that have refrained purposely from ho effected in case a sudden the defendant had been engaged for commenting on the hardstrips of change-over be forced upon the residents and others financially in Colony," I am of the opinion that years in trafficking in girls to terested in the Colony, who are expert advice should be sought as Singapore. The method for secur- losing heavily owing to the unpreto whether this Colony can now, dr ing the girls, anid Mr. Barrow, cedented fall in the price of silver, at some future date, safely adopt used by the defendant was usually but we trust that the omission may the gold basis, even if China does not be construed as implying any that of adopting them as daughters. lack of sympathy with these suf The defendant would take them one ferers. The chairmanship of the Kwangsiy one to Singapore, and she would Provincial Government is still vacant since the assassination of the late Governor Lui Woon Im. It is learned that either General Yu Hon Mow or General Tang Ting Chung (a close associate to General Chen Tsai Tong) will be appointed to the post,
Gasoline Dump in Flames, A big fire occurred at Wuchow on Saturday last when over 400 tins of gasoline for the Cantonese aero- planes were destroyed. The cause of the fire has not been disclosed but incendiarism is suspected. Three guards were arrested.
The girl in the present case was then return to Hong Kong.
presented by her father to defend- ant about two years ago to be adopted, and $100 was paid, as com
The girl was taken by the defendant to her horge in To Kwa Wan, where the defend ant's own daughter was also stay-
pensation money.
ing.
A year later, the little girl was taken to Singapore by the defend ant, who also had another daughter in Singapore, and it was in her house that the little girl was kept.
Taken Back to Hong Kong. After living eight months in this house in Singapore, the girl, who auffered from a sore leg, was taken. back to Hong Kong, where she had been living with the defendant in To Kwa Wan and later at Sham- shuipo.
A Canton report stated that the Chu-Mo Reds which bave not
It would appear," said Mr. molested Kwangtung for the past Barrow, that although the girl was few months have fled to the borders presented to the defendant as a of Kiangsi and Fukiën. The Canton daughter, she had been treated as Government has instructed the gar-teal all the time. The de- fendant's own daughter received education and the other girl had none, although she had been there for two years.
Objections were raised both hy Mr. Alabaster and Mr. Jenkin on the ground that Mr. Potter should not be allowed to take that line as he was not representing Paris cre- ditors. Mr. Jenkin said that Mr. Potter was trying to put up an en- tirely new and different case, which he submitted their Lordships could not entertain,
Replying to bis Worship, Mr. Barrow said that he strongly sus pected that the defendant took girls to Singapore, where they were treated as mui tau. The unsuccess- ful ones were returned to Hong Kong, as in the case of the little girl sad another case which had come to his notice. He knew of two other adopted daughters, who had been sent to Singapore, but had not returned to the Colony.
DR. KOTEWALL'S OBJECTIONS,
At the end of the Committee's Report the Hon. Dr. R. H. Kote wall explains why he signed the report with two reservations:
not take the same courte.
From paragraph 27 of my mem. orandum it will be seen that I, too, have reached the conclusion that the time is unpropitious for Hong Kong to change to a god basis, but that I feel that if we were to do so even before China, the result might not be as harmful to the Colony, as it is feared. I should like here to call attention to the
arguments in favour of stabilisation which I have collected from vari cus sources and arranged in para graph 28 of memorandam.
Currency Advisory Board. "In paragraph 21 of the report
I have a great respect for the alternative suggestions for the bet opinion of my colleagues on the ter control of the Colony's note Committee, appreciating their tech- iasze are mentioned. They are (a) nical knowledge of the subject, that the Government should take and their ripe experience" of busi- over the note-issue, and (b) that itness and banking conditions in At the should exercise a more direct con- Hong Kong and China. trci over the note-issuing banks same time I feel that the Colony than it does at present. Arguments ought not to rely solely upon the are given in paragraphs 91 and 2 opinion of this Committee in at to refute the first suggestion, but tempting to dispose of the problem no reasons are advanced against the which affects the very life blood of second which seems to me to be of the Colony's trade. I hold the view sach importance as to merit seri- that the question should be refer ous consideration,
red for advice to the highest pos- sible experts whose disinterested- ness and lack of bins cannot be questioned,
"
In paragraph 16 of my memoran dum I express the view that, while the first alternative seems, for reasons-given therein, unwise and unnecessary, the fact that it has been suggested by such important CHATER MEMORIAL CLOCK. organisation and local residents as the Chinese Bankers Association; the Chinese General Chamber of Commerce, the Hon. Mr. J. J. Paterson and Mr. R. M. Dyer, CBE indicates that there is a The Chater Memorial Clock. widespread desire on the part of which has recently been installed the public that the Government in the University Tower, is the should not altogether dissociate gift of the Armenian Church in itself from the control of the note- Calcutta. issue of the Colony..
CALCUTTA CHURCH'S GIFT TO
UNIVERSITY.......
In his will, Sh Paul Chater made. this church the residuary legatees. of his estate. The Official Trustee. of Bengal visited Hong Kong in 1927, and was the guest of the Vice-Chancellor of the University-
Soviet Confiscations, Turning to the facts, Mr. Potterrison troops at the north-eastern said that the case arose out of the border of Kwangtung "to assist the decrees of the Revolutionary Rus. Kiangsi and Fukien troops in their sjan Government published in campaign against the marauders. December, 1917, by which Russian baaks, including the Russo-Asiatic Bank, were nationalised, the good- will of the banks were utterly destroyed, and shares were declar ed null and void. His submission was that the Russo-Asiatic Bank was not destroyed in law for the technical reason that there was do winding-up in the Soviet Courts, Sir Peter Grain pointed out to but while technically alive it did Mr. Potter that in his notice of ao business in Russia while it con- appeal he had said in effect that fendant's elder daughter in Singa note-issuing banks... Of these the authorities of the Armenian Church
the money should go to Shanghai.
Mr. Potter replied that he was In December, 1917, the banks in appealing against the whole judg- Russia became a state monopoly.ment, and his submission was that Lader these circumstances, certain the money should be sent to the directors of the Busso-Asiatic Bank head office wherever it was situ- fled from Russia to Paris, and thera ated. resumed control of the bank's branches outside Russia. In Sept ember, 1926, the branches went into liquidation all over the world. It would appear that instructions for
quidation came from Paria.
tinued to do so elsewhere.
sti
the motive power was in Paria.
Arguing on points of law and the domicile or principal place of busi- ness, Mr. Potter said that on the evidence before, the Court it can- not be said that this Company had its head office in Russia, since A winding-up petition was filed in September, 1998. Assuming that Hong Kong, and the branch was the Company was not dissolved, closed with assets to the extent of the evidence all went to show that About $300,000 which went into the haads of the liquidators.
Assets Should Go to Head Office.
Mr. Potter said that at the pro- ceedings before the Trial Judge it was contended by Mr. Jenkin that Although Hong Kong was a mere branch that creditors from any part of the world could prove. their claims in Hong Kong, The other
Cut Off By the Soviet,
Chu. Yan, the, girl in question, gave evidence that she had not been treated as a daughter should be. She intimated that there wAS AN other mut tear in the house of de-
pore.
After hearing further evidence, his Worship ined the defendant $100, or two months' hard labour Previous to sentence being passed, Mr. Barrow. asked his Worship to take a serious view of the case, as the defendant appeared to have avoided as much as possible coming into contact with the authorities,
MUI TSAI IN CANTON,
"SYSTEM TO BE ABOLISHED
BY GOVERNMENT.
The Canton Government have
Mr Potter further argued that taken action for the registration of the Far Eastern group was control feat as the first step in the led entirely in Shanghai and the abolition of the mui isnt system, assets were sent to Shanghai. "On and instructions have been circulat that basis alone he had contended ed to the various districts to this in the lower Court that the assets effect. should be sent to Shanghai,
By its action the Soviet had outing the establishment of asylums side argued that after the dissolu off the outside braucher altogether, for the accommodation of girls of tion by events In Russia, the bank allowing them to carry on in separ poor families as a remedy against formed itself into various indepenate groups. This was clearly so as the mui tai system. dent groups, Hong Kong being in they have made no claim on the
the Far Eastern group. which had assets. Shanghai as its head office. They
Mr. Potter suggested to their
Too Much Responsibility on Banku,
Many business men and bankers consider and I agree with them
an old friend of his in Calcutta. that the present system lays too great and too grave a responsibility
On his retura to Calcutta, the upon the managers of the three Official Trustee suggested to the Hong Kong and Shanghai Barking that it would be a graceful act on Corporation, by virtue of its pre- their part, if they raised some mier position in China, and of the money to be spent in the University special privilege it enjoys in being of Hong Kong in commemoration alowed by law to issue notes in of Sir Paul, Chater's services to excess of the statutory limit to any the University and of his generosity amount under certain specified con- to his national church in his native ditions, exercises, the greatest tow power; and consequently it is upon Sir Phil Chater was the Chair its Chief Manager that the heaviest man of the Committee which was, responsibility lies in a time of finag-appointed in 1808 to work out the cial crisis. This means that in such University scheme, and he was, a time the welfare of the Colony until his death, the University's hon largely hangs upon the decision of treasurer as well as its benefactor. one man. On cne or two occasions in the past the public has asked. itself whether the action or insetion" of the Bank in the matter of note- issue was to the best interests of
the Colony as a whole. The public has the right to expect that the note-issue, upon which the pros perity of the Colony depends to so great an extent, should not be auh- ject to the will of one single in The Government is also consider-dividual. At the present moment Hong Kong is fortunate in having at the head of its chief bank a man of large vision, but it requires to be safeguarded against the man of narrow views, who may at another time occupy the same position. In other words, we trust the man in power to-day, but we mistrust the system that confers a position of such power. It may be interesting to note that in paragraph 29 of the report, the Committee expresses
power of note-issue possessed by Taipo Police Station yesterday baüks involves a serious respon- afternoon. Two shots were fired at sibility on their part to Govern the reptile by a European police ment, which represents the faterests officer. After receiving the first of the Following an objection by Mr. shot on its head, the python rusbed Jenkin for an adjournment, their at the police officer, who immediate- Lordships decided to continue with ly direct the second shot on its body. the case and adjourned Court until This had the desired effect, and the this morning.
reptile soon became lifeless.
relied on the rule of law that the Lordships, after some discussion, assets would be sent to the head that enquiries should be made in office for distribution among all the Paris as to the law in that country, creditora. de
His own opinion was that claims
found as a matter of law that the Company had not been dissolved, Mr. Potter submitted that it was necessary to ascertain where the head office was in order to apply the rule of the law. If it was in Paris then the assets should be sent there for creditors to prove their claims.MAMA
(Continued on next Column.)
BIG SNAKE SHOT AT ΤΑΙΡΟ
A anake," said to be a python, measuring over 11 feet in length
proved, but he would not, put discovered and killed near the any higher than that. In case their Lordships wished to follow this course, the information could be obtained by cable..
HOUSEBOY IN RED
DEMONSTRATION.
FINED FOR ASSAULTING DIS-
TRICT WATCHMAN."
Following a Red demonstration in Wanchai recently, the police arrest- ed a Chiness for assaulting a dis trict watchman.
The man was charged before Mr. E. Lindsell yesterday, when it was stated that the Police had a busy time breaking up the crowd| who were preparing to stage a de monstration. COMMEN
In going to the assistance of n colleague who was taking a suspect to the Police Station, the district watchman, who was the complain- ant in the case, atated that he was
of Strike Them was raised by the crowd, and the defendant was the first to comply
The defendant, said Detective- Sergeant O'Donovan, who was, pro- Advice on Note-Issue spectable family, who described him secuting, was a houscopy in a re-
Sharing this view and in the
as of good character. absence of other schemes for a bet Defendant was fined $25, or, in ter control of the note-issue, I re- delault, two weeks' hard labour.
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