The Hongkong Telegraph
NEW SERIES No. 8480
Te'egrams
晚三十月二年三統宜
Telegrams.
Telegrams.
CHINA'S RAILWAY
TROOPS IN YUNA
ADMINISTRATION.
["Suxcxa Po" SERVICE]
,"
, י
Poking, March 12.
The Board of Communications
has discovered that a sum of
Tls. 6,000,000 has been wasted in,
the principai bureau of ruilways."
CHINA'S CURRENCY.
BIG LOAN FROM THE
STATES.
MINISTERS DISCUSS
SITUATION.
ARCUNO l'O' BERVICE,}
Poking, March 12, The Board of Foreign Affairs kas telegraphed to the Chinose Minister at the Court of St. James to negotiate with the British Government about the Yutumn
disputos.
The Minister replied saying
that. it is botter for the Board of
(ESTABLISHED
MONDAY, MARCH
1881.)
13. 191... 一拜禮
July-a catastrophe which your !
say the majority, if not all of Directors, and think I may safely business men in Shanghai did not complexion of the matter and foroste. This altored the whole furthiorrealisation of thosecurities was impossible.
THE CATHAY TRUST, LTD, An ostaordinary meating of members of the Cathy Trast, L., was hold in the office of Messrs: J. A. Wallio and Co., general managers, on March 7th for A FOREIGNER ARRESTED. the purpose of considering the
FORGED BANK NOTES.
["SHEUNO PO" SERVICE)
Shanghai, March 12. A foreigner has been arresto in Nanking for having in his possession Chinesio forged bank notes to the amount of tons of thousands of dollara,
A special deputy has been sant to investigate, and to down his confoderntes.
1
三十月三英港香
880 reb AksuK, BINGE Corr 10 CENTS.
to lay before him or the auditors of trust in doing something do their own books and other docu- truly and reasonably boliove was if necessary, the company's and liberately which they could not monts revealing their private cou- in the best interest of the com advantage that he would probably however soiioue, would not be corns. He had therefore had an pany. Mero error of judgment, not have ind had the inquiry boon authoiont. The only suggestions" made in different circumstances. in support of such a case were Mossre. Matthews and Thomson, Directors themselves to make this Ho had consultod the auditors, that it was to the interest of the and also Mr. Wadman, and he loan, and that it was so clearly also went to soo Mr. Wilkinson, not to the interest of the Com-- Varton meetings were held with the Crown advocate, and asked this object, an attempts wore him to indicate any special made to find a practical solution points for investigation, Mr of various difficulties which arose. Wilkinson modo several mug
gestions. Ilo would
your
It became necessary for circumst mess of the loan to the Directors to call meetings of the Shanghai Stock Exchange at tlio Brokera concernod, to discuss and time of the Jime settlement, 1010.determine what should be done. Over a vory large, attendance of sliaroliolders Mr. David Landale!
presided, aing supporto be Messrs. J. A. Wattie, 1), MeNeill,
During these negotiations cer-
now
G. U. MeMichel and II. A. Gain criticisms and suggestions read them the letter he had ro-
H. M. Macleod.
woro represented.
R. N. Macleod, Esq.
Dear Sir,
*
Maeray, Directors; J. C. Byer; manager: Loftus E. P. Jones meronado concerning theactionofceived from the auditors:
In all 150,425 your Directors in making this loan. CATHAY TRUST LTD.
is became so widely repeated Thoso criticismis and sugges
fail, in our opinion, to injure tho and known that they could not Company. We considered that they would accessarily affect the the future conduct of the Con Company's crodit and prejudico
gotiations with the Brokers pany's business and also further became impossible. Besides these considerations your Diretors folt
We beg to set forth below our replies to the various questions you raised in yours of 22nd ult. the Trust to the Stock Excliange, with regard to the loan made by
about 4-1.2 lacs prior to the 28th 1. The Trust had advanced Jane, the Trust advanced bc tween the 28th June and the 4th
pany
to have reasonably thought that that they could not bo takon it was. It appeared that ono Director, Father Castrillo, sustain June Settlement, and it could not ad- considerable loss on-the be said that it was to his interest that a loan should be made. Ho would have been botter off if the settlement had not gone through. no Juno Settlement and was not Mr. Macray, he understood, had in Shanghai at the time, nor was he present at the Meeting of the to make the loan, so that no ques- Directors at which it was decided
concernod. Mr. Marshall was not tion could arise co.far as he was in Shanghai at prosent, but lo (Mr. Maclood) understood from a
Foreign Affairs to settle with the APPROACHING WEDDING allod to hear a Report and cop that ander the circumstances you, Jaly (inclusive) nearly 13 lacs, reliable sourco, what his position
British Ministerin Peking.
Both are trying to solve the
BURUNG Po" Service.]
Peking, March 12.
The Board of Finance proposes to raison loan of $40,000,000 gold | dificult situation. from the United States for the
purpose of intro-lucing the new
coinage system in China,
Shanglei, March 12,
A meeting of the Society for
The Board of Comminic is the Protection of Enniers was
proposes to devote the loan fax n the four countries to sound other
purposes. Both arrangomonts are exported to come to a successful
issue.
RUSSIAN TREATY.
CHINA MAKES INVESTICIA
TION,
held here, and over a thousand supporters of the Yunnair people wote prezent,
"SRAT PO" Service.] Peking, March
It is reported thit Yuan Shil
Kai has tolographed his views about the disputes begwoon Great Britain and China to a certain'
Grand Councillor,
SHEUN PO' SERVICE.]
Peking, March 12:
CHINA'S NAVY.
SOUTHERN SQUADRON
RE-ORGANISED.
["Butung. Po". SERVICE.]
די
'
ordinary preferred shares Mr. Landato explained that he Ind boen asked by Mr. Wattie to take the clair.***
The notre calling the meeting hunting bom read, the Chairman
spoke as follows¿---
GentlemonAs you have just heard from the notice which has been read, this Meeting has been sider the eireistances of the
as Shuroliolders, would, wish to that is, before the Stock Exchange was. He had interviewed Messia, Company's loan to the Shangli hear samo report on what had chaque was handed over the Trust Landalo, Marshall; and Wattio... Stock Exchange at the time of the been done, and Jay 1940 ttlement. Before done. They decided therefore it against shares, of about 17-1.2 Laudale, Marshall and MeMichel was being had mado advancos, practically separately, ilo found that Messre, you hear the spot will briefly to call for an independent in-les. At the same time the Trust made profits in shares over the tell you what your Directors havol dond in the urator. During the Vestigation to be ride on your had bought sharos for cash and Junie settlement amounting in all The wolding of the fifth son of early week of the existence of the whole circumstances of the about 5 lacs.
behalf, and for a report on Bold same forward, to the value of to something under Tis. 50,000, this Companyja very large profit loan, tp bo' laid before you. At
The shareholders would bo struck Prince Ching, and the daughter was made the issue through
2. At the time the Stock Ex by the fact that there had been s this Company of the shares in the
the Trust and 20arly 17 Incs in contlommon profits. Messrs. a macing of the Board of Direc-chango cheque was handed over, great deal of exaggeration about of the Clovernor of Shantung, will Zingle Rghbor Co, and this Mr. Macloud, of Moss. Platt, the Bank, and also possossed Wattis and Co. had largo accounts take place on the 24th of Apriling of that transaction: When autors, Mr. Matthews of Messrs up prices of the Tage settlement, large number of Anglo-Java shares
Campany more assiste. y fortain Tocable and Maelend, aseting in 34,600 Zinugha sharos, Brokers in the suevossal hand-
conjunction Company's 3. The total value, at making to reosivo largo sums for sales ofn for the June Settlement; they lind therefore your Directors were ap-Laws, Bingham and Matthews), of the shares held by the Trust belonging to and paid for by proached chiefly by those Brokers and Messro. G.II. Thompson, with against the 12 lacs rod to Messrs. Wattie and Co. Messrs. and asked for help in order to emble the Stock Exdaugo to power to add one or more share-above, was about 33 Ines; the Wattie and Clayton, had a one- carry out the Jane settlement, to enquiry referred to, and bolt. have bean worth about 17 had not been paid they would have holders to their number; to mako same shares would on the 23rd third share each in theso. If they your Director considered they fore I proceed further, I will asle Ines according to the slip rates of had a great many shares instead, were entitled to every considera- tion at their handa:
Mr. Macleod to let you know the that day. result of their investigations. -
and the profitaade by them must Further, your Directors had to
4. The loan has now been re- depend entirely upon what the Mr. Macleod said that they had duced to approximately Tls. shares were taken to be worth, take into consideration that apart already been told that he lind boon 1,264,000: against this the Trust The making up price of these from the propood Stock Ex- asked to enter upon a certain in- holds shares which on the 10th shares at the Juno settlement was change loan the alvacos nequiry, jointly with the auditors. ult. were valued at nearly 31-2 exactly double the price at which Poking, Morch 12. inally made or promiso at Bafore he rent, into the results lies, and sundry guarantees to- they were quoted now, and re- The First Lord of the Admiralty Company on shares, amonton to well to mention that at the meet- guarantoes, security for nearly might be stated as amounting to that time on ballf of the of thest inquiry it would be as talling 10 lacs: against those
cordingly Mr. Wattie's prots about 17 laes of Laels and that ings between the brokers and the one lac has been put up, while anything from one to three-les, has decided to abandon the norit was their duty to protect directors, the latter, while anxious one guarantor has hypothiocated and Mr. Clayton's were at least as
these advances as far as possible. to do all they could to anive at a thern squadron for the present, Also it appeared to your Pirectors satisfactory seulement, felt that further security against his guar- Michael's accounts with the bro- the margin on a loan to him as largo. He had seen Mr. Mc- that, if the Juno settlement could if they attempted to meet the antco, thus making tho total se- kors for the Juno Settlement, and and to reorganize the southernnot be carried out the business of brokers in any way they might curity in hul ngainst the guars also their bank pass-books, and this Company would be seriously afterwards bo met with a claim astees a figure of ratior more other documents, and he had squadron, on account of the interfered with and all prospect from the shareholders lint they thon 21-2 Tacs.
of turning the Company's money lad given away or sacrificed some diffienlty of raising funds. over rapidly and advantageously, rights of the Company that they would be lost for the time boing. had no right to dispose of. At I have heard it stated by one that time, and in order amongst shareholder that the interests of other things to avoid thisdificulty, this Company did not lie in sup-Me, Wattie mode a suggestion to porting the market but that a him that was very similar to the collapse is what was desired in proposal which would be laid be order that cheap investments fore the meeting at a later stage, might be made, Gentlemon, I About thisgime rumours of a very do not agree with that and I do serious character were about all not think you will find the Direc-ovor-Shanghai, and those rumours tors of any financial Company roally led to the difficulty that prepared to precipitato a collapse resulted in this meating being We cannot now dotermine what and inconvenience, to any the called. A meeting of the direcwould have been the result had the own interests especially depend- were in fact promoting their least of it, not only their Clients, tors was held about a fortnight Jang settlement fallen through, ed on what was the position of Grand. Vizier, Hakki Pesha, re-but also those with whom they ago, and at that meeting ho (Mr. but we are convinced such an the brokers with whom they senting a suggestion that Minis-were doing business and jeopar- Macleod) gave it na his opinion event must have had a very bad had accounts. The important. ters had made a profit from the dise the business prospects of the that the question of a possible effect, not only on the market for question was what the directors Company. You will hear from claim by tho company against the shares but also on the financial thought was the position of these grant of railway concessions, struck a Liberal deputy, Ismail above, the particulars of the Loan, fully as soon as possible. At the the Trust At the time of the set that the Lokors wore insolvent, the Report I have referred to directors ought to be gone into position of most of the clients of brokers. It had been suggested Kemal, with his hand and mado which was only unde aller due outsot he had been retained only tloment the Ching Yue failure that the loan was unsafo, and that as if to box his ears. A Unionist, consultation with our Legal Ad- to advise the company in con- Poking, March 12..
Dorvich Bey, interposed and viser, Mr. Loftis Jones, who was nexion with certain questions that cipated and in our judgment this this. To this the directors all was not, so far as we know, anti-the directors must have kaiwn struck Ismail Komal a violent present at the Board Meeting call had arisen with the brokers. Now failure has been, in a great mea- replied, that so far from consider- The Board of Finance and the caused an uproar.
blow in the face. The incidonted to consider the matter, and who the directors asked him to under-ro, responsible for the decline in ing the brokera insolvent they Noto. I am authoritatively in- Bard of Customs have decided to
informed us that we were acting take the investigation ho had pro- value of securities since June last. thought that they were quito in HOME RULE: formed that China contends that
well within the powera conferred posed, and though by no means We are, dear Sir, Rulo Union has been revival tion. For the first fortnight after having given advice he ought to
a position to meet their guarantees London, March 7.-Tho Home upon us by the Articles of Associa-anxious to do it, he thought that
within a short time and that the under the presidency of Mr. to transaction, the liquidation of comply with this request. It
transaction was perfectly safe. Winston Churchill, Home Secret Company proceeded quito satis-asked to make this investigation
the directors consulted Mr. Hunter the securities deposited with the might be said that he had not been
After the meeting at which it was decided to make the lonn two of ary, and is organizing a campaign to conduct two thousand meetings of Tlo. 215,000 having been dis- necessary that someone should go
them that ho thought all the factorily, securities to the value by the shareholders, but it was
of the Hongkong Bank, who told, in Great Britain.
posed of in 18 working days.into the matter and he therefore
guarantors with a few exceptions THE UNREST IN MEXICOndead we were romonstrated with consonted to undertake the task
were good for the amounts op London, March 9-Toldgrans by cus at any rate of the Brokers with the assistanco of the auditors
posito their names, and he lud from Washington stato that con-terested, for roalising flicting reports are curront quickly. Had liquidations con-
as anyone could tell they were sinco'told the speaker that as for regard to the mobilization of tinued at this rate the whole
thon good for the amounts they United States' troops on the of the shares deposited as part
had guaranteed. The next argu- Mexican border. It is believed socurity would have been cleared
mont against the directors was that this step has been taken be-off by the middle of September, lesatisfactory thania protonded. that the Guarantors of tho loan cause conditions in Mexico are and it did not at that timeappear
that the real interest of the com
the physical condition of Pro-making good their guarantees Presistant reports in regard to would hire mel diflenty in sident Diaz have lately alarmrod Thon
SHRUNG PO SERVICE}
Peking, Marolt 1)
The Board of Foreign Affairs has establishe an enquiry bureau into tho Itussian troaty disputes,
and the Ex-Commissioner to the
Hague Conference, Luk Ching
Choung, has been appointed in
charge.
Peking, March 13. Prince Ching has telegraphed
to the Chinese Minister at St. Patersburg to goliato all matters in dispute with the Russian Government.
THE CASE FOR CHINA, Peking, March 9.-China has replied further to the Russian
REBELS RISING IN YUNNAN.
Viceroy Li of Yanatu has telegraphed to the Grand Counbil-
है
that the rebola are rising, and is
!
P
WORLD'S NEWS.
[FROM N.-C. DAILY Newa."]
TURKEY.
asking the Grand Council to
London, March 7.--Telegrame reiufores tlie troopa at all import-, from Constantinople state that an extraordinary scone has occurred on! places as a precautionary in the Turkish Chamber. The
..
measure,
:
CHINA'S TAXATION.
("SHAT PO SERVICE.],
free trade in the Now. Dominions, held a discussion about tho aboli according to Article XII of the
+
Treaty of 1881, is confined to the tion of likin and other increased import of foreign and the export taxation on the 15th inst. of native produco. As toa is a
nativo product it is ineligible for
sale in the Now Dominions. The PRINCE CHING RESIGNS.
["SHAT PO" BERVICE.]
Poking, March 12. Priuco Ching has tendered his
establishment of Consulates en- tila, according to Article X, tho simultaneous application of dution. Mixed Court procedure his already boan applied. The Reply concludes with the hope that Russia will appreciate China's resignation and has recommend repeated attempts at the pro-ed the President of the Board so.v.tion of friendly rolations. "N. C. D. News,"
of Fionneo to take his placo,
}
his friends,
too
asked them questions on all points At the time the loan was made, that occurred to him as suggesting we are of opinion that it was most any evidence in support of a important the Trust should do claim. It appeared that it was everything possible to conserve generally known among the the value of the securifies held, directors themselves that they had and we therefore, think that the all dealt in shares to some extent Board may have had a certain for the June settlement, though' amount of justification for making exactly to what extent was not the Stock Exchange loan. We known. The more fact that the. should point out it is obvious that Directors were promoting their numerous loans made on the 28th own interests would be insufficient Juno had been arranged pro- to establish a breach of trust viously.
Whether thoy against then.
law.
Yours Faithfully, (sg) F. N. Matthous
The first point he proposed (gd) U.II. and N. Thomson, Next he came to the question of
pany had a claim for damages in to deal with was whether the Com- rospect of any loss sustained. The loan was not ultra vires. The Company was advised at the time dera they thought would be ablo rightly advised, that thoy had and any shareholder or sharehol- by Mr. Jones, and, he believed, to assist. He did not arrogate to pawor to make this loan. By the himself or this auditors or anyone articles of association, which were olso the right to arbitrato or do in the usual form, the directors anything of that kind, and if they were not liable for any los mu- thought they would realize that own wilful net pr default. For but that there should be a general listened to what he had to say he less it Imppanod from thoir pany was not to make this loan, entirely in the interest of the claim it would be necessary to thint it would be ablo to buy the inquiry had been conducted the Company to succeed in a collapse of the share market so camo the large native shareholders. The directors offer- show that the Director or Diroc. shares at very low prices. The failures in the last week or so of ed, and had carried out their offer' toisenod had committed a breach (Continued on Pago 5)