THE HONGKONG TELEGRAPH, MONDAY, NOVEMBER 24, 1913.
A. S. WATSON & Co., Ltd.
ESTABLISHED 72 YEARS,
DAY BY DAY. :
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CHEMISTS, DRUCCISTS AND PERFUMERS, COMMITTED.
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WATSON'S
EFFERVESCING LIVER SALT.
This Valuable Preparation speedily relieves Biliousness, Sickheadache and all derangements of the Stomach. It purifies the Blood by imparting the natural saline elements necessary to a healthy ard-vigorous condition.
WATSON'S
CELEBRATED
GOLD CURE TABLETS.
THE HONGKONG HOTEL COMPANY, LIMITED.
Mr. Lowe on Auditors and Directors.
The following terl asi conrent to the directors and therebolders of the Rongkong Hot 1 Company, Limited, by Mr A R. Lowe, O. A, It is dated November 21:
Doar Sirs,
Mr den
what was does in 1000 wana flaw If D. Noble bad continued to amission or clerical error, but read to the shareholders Mr Wil- was so done deliberately and after kinson's letter they would have lun" and careful consideration, heard those words: nore shareholliră must abide by it,
On ile 281 Sey tembor, 1912, I didnt seed wyle of 10 the Obair- m nad Directora a tbe subject and quoted them two appeal cuc:s in which the particular point had been considered,
The Maits, Siberian Mail Loft per se. Chonan at midnight on Saturday. Australian Mail, Loft per s.8.
My solo object was to assist the Empire at 11 sm. sesterday Upco my return to the Colony, Directorate and to erable them to
I have read the epcach of Dr. take the necessary steps to right: Australian Mail-Arrivod For Bu
Noble as issued by the Company themselves before the Aconuula St. Albans yesterday.
attached to an unlated notice to were next presented for audit. I English Mail of October 25:-
eboreholders relating to the Ex-had previously bai occasion to “Delivered in London on Nov-traordinary Meeting the share, differ" with the views of the
ember 21.
holders of the Boogkong Hotel Directors as to their Balance Company, Limited, held on the Sheets, but this did not influence 27th October, and I find the me to hold the information up action of myself and co-Auditor until the last moment. They re- referred to in such terms as are caived this information from me calculated to give the sharehold five mouths before the next Bal- Closed per 88. Persisting public an erroneous view of ance Sheet had to be issued and - p.m. tc-las.
American and Canadian Mail Arrived per as. Eropress Asia this morning.
Give immediate reliel and a speedy cure. Invaluable for American and Canadian Mails Cold in the head, Influenza and Neuralgia,
A. S. WATSON & CO., LTD.,
HONGKONG AND CHINA.
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New Steam Launch.
Hongkong an Whamp Desk Co. built at the Cosmopolitan Dock, was launched on Saturday Under the chairmanship of Mr
was held on Saturday evening a the Phoenix Cinb.
Smoking Concert.
the matter.:
caro law. Hie lot is not 8
1 '
THE "TRIEGRAPH'S" ACROSTIC.
Caligul A Obero
4.
Tote C
52
6.
Cymbeline HouyhnhnmS
"Nevertheless it seeins in us in the prezent instance that it might be held that "a true and correct.view of the aiste of the Company's effire" would not be ex- hibited in the balance sheet if no mention 'were made in it, under the heading of -** Jiabilities," of the contin
gent liability of the Company to pay out of its reserve fund the balance of the amicunt which should-have-been-paid- to the holders of the new shares....and, for this reason, we think that a con tingent liability in this re- sprot ought to ba mentioneday about equity, but when the in tle balance sheet,”
Company bas paid the Directors' venture to think the share which turns out to be wrong,
expensea for a legal opinion very fail to see the equity of refusing
Notes:-(1.) ' Salad days" Antony and Cleopatra, Act i Bov, (2.) Caligula, a little boot-(3.) Midsummer Night's Dream. (6.) Gulliver's Travels.
their residences without any extra charge. On copies sent by J. A. Tarrant, a smaking concert out what frequently proves in this ad the legal Looks of reference, September 27th above quoted, 14
post an additional £1.80 per quarter is charged for postage. The postage on the wookly issue to any part of the world is $1.00
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By Order,
"HONGKONG TELEGRAPH.'
The object of this paper is to jublish eréct in 'ormation, to airge the tri th and print the news without fear or favour.
悄徇烂幷能眞開要訪探大正验科冠宗报本
Cable Address: Telegraph, Hongkong.
Telephone: No. 1 A.B.C., 5th edition Western Union.
C.R.R. Pastenger Agent Mr W. T. Payne,chief passenger agent of the Canadión Pecifis Railway 8.P, Co, is staying at the Hongkong Hotel.
Stealing Tobacco. For stealing two line of tobacco, A Chinese was sentenced to seven daya' imprisonment and four hours stocks, at the Polico Court, this morning.
The Offending Stranger. At the Police Court this mor ing. a Chinese who arrived by
the Antilocheus was fined $50
for being in unlawfal possession of ammunition,
which I had not..
TA 119 an
andito
herefore, the hint Dr. Noble took from me a good one?!"
Mr. Maitland has something to
1
I fm the Auditors' Report both holders will gather I deplore the no.essity of de-old and new shareholders saw the different impression on reading to pay the Auditors legal expenses fonding myself in this mqones, point at one and the same time, this further quotation from Mr. for an opinion which was right, but I was away from the Colony and therefore if certain people Wilkinson's letter, from the one The Auditors have had to meet when the uitstrug was cald sad are to be dubbard "speculatora," left upon them by Dr. Noble. to those expenses out of their meagre I cannot permit Dr. Noble in its meaning as gamblers, for fact the Auditors did act up to marks, which have appeared in buying, surely this applies equal- their legal advice.
The role of the scapegoat" is the public Press, to pass without ly to cellers.
Another point which Dr. Noble one I have no fancy for, and per- challenge, as he has attacked me. To my letter I rreaived no sought to make was that I bad hups it is time shareholders should official acknowledgment. I did voted against my own resolution know that an auditor's duties do Aufitor's Views.
receive a private chit from one of and used certain words of mine not wholly consist of making blue An Auditor's duties, although the Dictators, now absent from Fased in ordinuly conversation pencil ticks in nice clean ledgera A new ateam launch for the seemingly pet well known to the Culony, asking for details of which.vemed to vorroborate hind seeing that payments for the
somo luan! directors, are fairly the eness to which I had referred point of view.
office stationery are duly vouched. clearly defined by both text and the Bard, and to this I replied Is it possible that Dr. Noble
Shareholder's Opinion. happy one, and he should re-iving what detaile I possess does not even now understand
As a shareholder, as distinct ceive the moral support of the and advising that the Company's the position?
lawyers should be asked to look shar holding public in carrying the matter up: Fossessing as they no evidei od by my letter of following remarks to make
The resolution is not mine, and from an auditor, I have the
It was not notil 22nd July last Colony to be a bitter and difficult
have always thought that the hat I bought any Hotel shares, task-the preaching of the guapel
In ths me letter, dated 27th easiest and the only really equit. and I hold in my name both old of ex ctoess as far as possible in or tember, 1912, I advised the able way out of the difficulty was
nd new sharea for myself and regard to Balunce Sheets,
oilling up of the Unpaid to call up the unpaid capital. Ilients, go it will be seen that I My unfortunate experience has hern that Icoal directors are very Capital as being the only proper further told Dr. Noble so at ar bought long aftor, the recent rise interview of over two hours' bad taken place and got no ad- at to treat any proper criticism way out of the impasse,
I beard afterwards that the duration at his office, and, at his vantage from any special know- of the manner in which the Directors were very angry with request, on 24th June last, when ledege in my possession in Sep carry out their office in relation to Accounts as a personal affront.
me and considered that I was in he himself read cut the draft retomber, 1912. In fact the I do act mean to imply that terfering with a matter which did solution he now describes a market value is lower now since any local director is capable of point of view. would te quite said, if he would enlarge it I bought them "subject to the not concern the Auditors. This mine for my approval, ond 1 thes I bought. The transfer deed alates of acting dishonestly, but every unintelligible to a practising Ac-manke it retrospective, it would seral conditions" on which the Board of Directors is liable, even countant at home, far rd Justice satisfy
ansferor held the same, i..., I when acting in the best interest Lindley in the Kingaton Cotton if the shareholders passed it bought whatever rights the old of the Company to perform a Co. (No. 2) 1896) 2 Ch. 284 (0.4.) Le informed me then they shareholder possessed. Now some ultra vires act. Directora, usually said: Auditors are,, in my would not pass it, but demanded of the new Forip which came into chosen from among responsible opinion, bound to see what excep- the calling up of the capital t my hands was in the name of the and successful businessmen, cational duties, if any, are cast upon make all the shares alike under Dairy Farm Co., Ltd., and trans- not be expected to specially tudy them by the Article of the Com the terme of the resolution farred to me by its directors:- "Directors, their duties and Jiabilities," as contained in various pany whose Accounts they are creating the additional abares; Vesers. J. W. Noble and J. Scott called upon to audit. Ignorance further, that the additior.a Harston, under a recent transfer Ordinances and legal tomes before of the Articles and of exceptional capital obtained was to be user Dr. Noble says: The trouble taking up a seat on the Board of a daties imposed upon them, would to pay off the current libiliter has arisen because some of the Pubic Company, but I may re not afford any legal justification and any balance in buying bctld shareholders have been temp mark that these dutios and for not observing them. liabilities were fairly fully set on!
the debenture debt, and nsated by the profit offered and sold Mr J. ffries and I were appoint quid pro quo they would their "new" isaus sieo, "It is in a recent series of articles which ed Auditors to protect both the claim the dividends short paid fall the result of speculation, géné appeared in the Hongkong old and the new Shareholders, past years. My reply was-Ittlemen, nothing else. It is wrong Telegraph.
When, in the exercies of his pointly by both partios, All we on the part of the new sharehol-888."
an our remuneration is paid was a very generous compromise in principle, it is not sound basi proper duties, the Auditor points have to do is to see these interests ders, and that all I could advier Dr. Noble' told me of the at- out that a course of action is ultra are in accordance with the law of the Directors to do was to jum citade he was taking on June vires and if persisted in might the land se modified by the Com-at such an offer. At this date 24th last, so he knew, and I result in the directors being made Sinn personally liable for a large sum class was seen to be obtaining an informed by Dr. Noble it war Dr. Noble, ca director of the pany's Articles, and when one I was not a shareholder and was know, what was happening. It has of mousy, one would think that
advantage, innocently or other practically impossible for me to Daity Farm Co., has taken my of the auditor, in addition to having wise, of the other we regarded it bay the shares, but that if I did money for certain rights in the Within the past few years many suggestions have been advanc-Chomists and Druggiate, performed his duties, would be
entitled to more thance than as our duty to print it out. We buy "new" shares I would be shares I purchased, I fail to see ed for the bringing into more constant tee the network of canals'
still hold to thi-opinion in spite a loser.
on what equitable grounds he can which spreads over England. Many of those great waterwaye bave
of anything Dr. Noble now says, been allowed to fall into utter di cay, und it is somewhat pathetic ration
The above clearly shows thaibject to my trying to preserve The next phase developed when the resolution was neither D to see these now deserie land siagaint ditches with old bulks of Harbour when he whe
what I have paid a full market on February 5th, 1913, I saw the measure of mine nor favoured by price for. I think I have overy barges, many of them reduced to skeletons, moored for the last was about to be arrested
I have actually on occasions
annuoncemout that "aubject He been told, or had conveyed to we to audit" the half-yearly dividendi me, and for Dr Nable to treat it right to say, as he does, "It time at wharf which once were Ecocos of bustle and activity but which to-day are quiet and silent. It is with deep satisfaction, Court, this morning, be was sen-cussion), that if I persisted in my be paid as hefore. On February it is, to gay the least, incorrect acation.
was fished out, and at the Police (not in the actual esse under dic-
na such, and use it as a den- wrong in principle, it is not sound сп oll DeW therefore, that ono notes a new movement which has been initated telead to a'z weeks' impresion- desire to do the right thing (the 7th, I again addressed the Chair and unfair and calculated to
shares would unciation for my voting against business," but with more justi in Birmingham for the betterment of England's inland waterways ment and foura' stocks. By a peculiar coincidence this movement syrchronises with ope
words used were, of course, not mansad Directors, and elated that mislead.
Dr. Noble says:—'What trad- which aima at the improvement of the Grand Canal of China. In.
quite these) I should lose part of
ing is done on the strength of this it would appear the the Board had the case of England the neglect of the canal system is, of course, in
New shareholders are entitled uncalled capital ? We have two. The name of Dr K. O. Hmy living. Perhaps I have lost
gone into the matter and found large measure due to the growth of railways; the present lamentable Walther, Dortor of Medicine of the
some of the jam...
they were acting correctly and in my opinion to a3y: We will classes of creditors. The Bank, condition of the Grand Canal, however, is more a matter of a die- University of Berlin and German The actual facts of the present that I should be much obliged if not give up our rights conferred to whom we owe $50,416. The regard of proper conservancy methods, the results of which are seen State Examination, has been add-
case are as follows:-
I may be allowed to inspect the upon us by the conditions of the lebenture holders, who have con- On the 20th September, 1912, panies Ordinance; I came to the may satisfy myself and co-Auditor and even if we do not require to with "The last published accounta be paid back dividends, we do showed the Book a creditor for that the payment out is correct New Regulations.
conclusion that the Directors of for the past half-year."
claim future dividends and are $138 701, so Dr. Noble' figures New regulations relating to the the Hongkong Hotel Company
To this request, the Board prepared to pay our uncalled have not been before the Central Waterwaye Board, which shall acquire and control the danal mates in the mercantile marine they could pay dividendein pro-a somewhat ill grace. System of the country, beginning with those linking the Thames. have been made by the Officer Ad-portion to the paid-up value of Mr. Jeffries and I read and did paid-up shareholders.
injustice to the present fully at date, but he has omitted any
mention of sundry creditors, Humber, Severn and Mersey, which are known as "The Cross," A ministering the Government-in- the churcs. The law is that not agree with the opinion of the Directors As things are, I and that a dividend is payable present these waterways are in different hands-many sections of Council ander Sub-section (8) of Company can only do so Company's legal advicere, and, to
As an Auditor I say to the ually about $30,000 to $840,000,
The Hongkong Telegraph.
HONGKONG, MONDAY, NOVEMBER 24, 1913.
BIRTU..
Visitors Departed. Amony the passengers by the .. Devanha were Sir James and Lady Dodd Shaw who have been guests at Government House dur ng the here.rt ayii
Remanded.
A Chinese was alleged to liave returned from banishment, and when he made an enforced call on Mr. Wood, at the Police Court JACKS-Ai Government Bungalows, Mt. Kellet, The Peak, this morning, he was remanded on November 22nd, to Mr. and Mrs. P, Jacks, a' son.
ontil Saturday.
The name of Mr. Mathias Govenment Civil Hospital, heen added to the Register
CANAL POSSIBII ITIES.
New Chemist..
No Escape. A man who afolo jumped . into
New Doctor.
sne
the
kicks.
This, however, has not always been my experience.
in the deterioration of the dykes an i the silting up of the bid to led to the list of thore entitled to whilat considering the New Com-egal opinion "in order that I sue of the partly paid shares. !ributed $750,000 for us to trade
such an extent that many sections are now so shallow that naviga-practise medicine in the olony. tion is completely stopped during each dry season."
The movement in Birmingham, which has been set on foot by
Mr Neville Chamberlain, calls upon the Government to form examinatione of mastera and Limited, had no power by which acceded on February 12th, with capital so that there can be no holders and presumably are thoro
them belong to the railway companies-and are of varying width Saction 4 of the Merchant Ship-uuthorised by its Articles, and protect ourselves, we sought the cannot give you a clean certificate which requires further borrowing size. So until these and other anals are standardised no proper usgulations previously in forco are silent upon this point.. As a before signing the Balance Sheet to pay pro rata dividende, and addition, to debentures there is and depth, with bridges of different height, and looks of different ning Ordinance, 1899. All re-the Company's Articles were advice of Mr. O: D. Wilkinson unless your Articles permit you from the Bank to mest, so that in
can be made of the exceptional opportunites for inland water transit cancelled. which the country possesses. Toro it may to remarked that while various Continental countrice have developed their system of intera', water-traffic of recent years puri puesu with the development of
maiter of fiot this authorisation of 31st December, 1912.
the way to do this is to alter your about $150,000 owing which, if Appointments,
was included in the old Articles
Our legal adviser, Mr. C. D. Artioles if the shareholders will the shares are called up, can be Mr Alan Eustace Woud line of 1883, when a prior new issue Wilkinson, under date of Febru- pass the alteration. You must met and leave a not excessive aleo satisfy me that there is no sum in hand for any ordinary. their railways, wo have been content to neglect our national advent: Secretary for Chinese Affairs and excluded from the new Articles 24tb, sent me his opinion contingent liability for past years," capital expenditura requirements
been appointed First Assistant of shares was contemplated, but ages in this respect.
The account of the reasons without borrowing and thus place In these days when, as a consequence of strikes, the tendency Mr R. E. Lindeall ing he nap (Chairman) then said," With the immediately tent to the Directors governing the withdrawal of the the Hotel a vary independent
Deputy Regielar of Marriages, passed in 1000. Mr E. Osborne Supporting us in our contention and a copy of this letter we is towards higher railway transit charges, a revivified conal system pointed to net an Second Assistant assistance of our lawyers, we for their Information, together original resolution at the first position as regards its Bnances, could be made great use of for the distribution of non-perishable Secretary for Chineas affairs and have produced no almost new set, with the signed Balance Sheet, mesting, and its revivel at the and it some strange that the commodities. Indeed, with our great poria mostly situated on the Deputy Registrar of Marriages, complete so far as the combined which was Lsing pressed for as but if ita retrospective nature is to be placed in this enviable second mesting is interesting, Hongkong Hotel Directors object estuaries of rivers which can easily ba qanalised, if they ere not canalised already, and with our great manufacturing centree grown
intelligence of our lawyere and the Directors had decided to hold
not acknowledged, I should like position which directors in
in other outcolves are able to make them, the meeting on the 8th March. up inland in proximity to the coal fields, the cheap transit which In conncection with the Y.M.C. and all are of a practical and canals afford would be a most important factor in industrial pro- A. Literary and Debating Society weful character," and he sum- 27th ultimo, quoted a portion of to get over the difficulty of divid. Granted this is the position
Dr Noble, in his speech of the to know how the Directora intond Companies strive to gress. The work of our fathers in constructing these great water n debato will be held on “The ways deserves to be developed and continued, for, despite the coming protection of Coast wish, Shipp- one of which (No. 7) was then added these words of his Jute last, under an Article which obtained from the uncalled capital mmised the principalteratione, Wilkinson letter to me and ing profite already made, say, to it is not fair to assume this credit of the iron horse, it is evident that canals onu to-day discharge ing." Mr J. G. Reid will land in Revision of clauses bearing on This advice out Auditora cannot come into force until long was not of much more me daring functions of usefulness us great ne, or oven greater than, they could the affirmative and Mr P E upon the dispsal of Profite. I do not seem to have coted upon apply retrospectively. Was not,
afterwords and therefore cannot the rast four years, twenty or thirty years ago.
Crievo in the negative..... dues mot, liefore, Pier that.
(Continued on Page 53
Interesting Debate.
attain. now,