THE JUNE SETTLEMENT.
TO-DAY'S COUNCIL DEBATE.
ANNULMENT PROPOSAL
REJECTED.
SANCTITY OF CONTRACTS UPHELD.
F
A specially convened mecting of are involved directly with the in- the Legislative Council was held terests of their cKents who in at noon to-day, for the purpose of September will be called upon to considering the second reading of find the difference between the con- the Bill, relating to the postpone tract price and the value of the ment of the June Settlement, shares of that date. There will be There was a full Council members, whilst the back everyone involved will be bound to attendance of a depression of shares because
general public.
T
Yesterday's/Dissister.
EXTRA.
THE HONGKONG TELEGRAPH.-
SATURDAY, JULY- 18, 1925.
The Council resumed.
(6)
1925, and as if all the parties të 2. In this Ordinance,
every such contract had agreed- (c) June settlement day” means inter se that interest at the rate of the 23rd day of June, 1925. eight per cent. per annum should Shares include any shares be paid; from the June Settlemen în any stocks or funda trans day till the 23rd day of July, 19259 ferable at the Bank of Eng- or other earlier date of payment land or at the Bank of Ire in respect of every sum of monER land, and India promissor due and payable under the sa notes, and any bonds or contracts on the June Settlement debentures, and any shares, day,
on July 23rd. I would also like to What I wish to ascertain is whether
1.This Ordinance may be eit formance of the said contracts until point out to your Excellency, if 1 you, as representing the Chamber His Excellency remarked that be ed as the June Settlement Ordin- and including the 23rd day of July may, and this Council, that as re- of Commerce, share the view which, had power in cases of emergency ance, 1925.
and where no material amendment gards every one of these contracts. I confess I do myself, that any form the brokers are personally respon- of repudiation of contract will result
had been made to the Bill in Com- sible for the performance of them. in Blackening, the name of Hong mittee, to suspend the Standing If your Excellency and this Coun- kong in the face of the community Orders in order that the Bill cil zee fit to adopt the legislation of the world. Ma
might pass through all its stages in the mode 1 have suggested, it Hon. Mr. Holyoak. That has that day. The only question was will be left to these two Associa- not been precisely discussed by the whether it could be regarded as tions to settle amongst themselves Chamber of Commerce because it a matter of urgency. "I feel my- the contracts as between them has never been definitely brought the rules and orders, and I can- self handicapped," he added, "by selves, their principals and their before it. It has been informally not declare this an agents. This proposal, your Ex discussed, and think I am right lu Under the rules of the
emergency. in the stocks or funds of any 4 Every contract, which is púa cellency, would carry with it the saying that as far as the Chamber there is nothing to prevent us
foreign or colonial state-or ferred to in section 8, shall be following eliminations in the of Commerce goes it would view meeting in twenty minutes time.
government, or in
the deemed at all times to have been present Ordinance now before with alarm the principle of re- I feel, however, it would be strain-
capital, stock of funded de- and is hereby declared to be valid you:
nunciation either in this matter, or ing the rules and orders if we met
of any county council, cor.and enforceable by legal proceed Section 2-Sub-sections (a), (b), any other. It would form a again to-day."
poration, company, or society ings notwithstanding that the same- (e). (d) and (f) delete; the balance precedent for repudiation of all
in the United Kingdom, or in was not performed remain.
The Council then adjourned un-"
on the June), contracts in every shape and form. til 12.45 on Monday.
the Colony, or of any foreign settlement day or on any other date Sections 3, 4 and 5 would stand. His Excellency the Governor
or colonial corporation, ëɔ 4* prior to the 23rd day of July, 1928, Sections 6, 7, 8 and 9-would be I confess 1 am reluctant to deal
The Amended Bill
pany or society.
5. No person shall be allowed to 3. Every contract for the pur- claim or plead in any legal prò disappear from the Schedule of the form, and, I think the wisest course due to come before the Council for settlement day and every contract fore or after the commencemen eliminated; also the flat rate would with this matter in any shape or
The amended bill as it is now chase or sale of shares for the June ceedings, whether instituted bee Now if legislation, your Excel- a minimum. Personally I think its third reading on Monday is as for the carrying over of shares until of this Ordinance, that any of the
Ordinance.
adopted was
în.
propos-
is that the various Sharebrokers Associations, apparently by ઝ oversight, have still kept the date
as July 21st. It should be altered of the postponed June Settlement
to July 23rd, surely.
Mr. Shenton: It will be altered to the 23rd.
follows:
19
Council.
of the Council Chamber was filled make a reasonable effort, to sell
to take is to limit interference to with members of the Stock Ex- shares in order to find the money change and the Share Brokers' necessary. That, as thir Hon. iency.
that the wisest course is to take the
the June Settlement day shall be contracts which are referred to Association and members of the Council can easily see will, in it form, it would meet
An. Ordinance relating to the construed in every court of law as section 3 became or in invalid qi every simple line of approving the post- self, carry with it a further depres- part of the argument raised ponement of the June Settlement Postponement of the June Seitle if, prior to the June Settlement otherwise unenforceable by lega sion in the price of shares and I by my learned friend, until such other date as may be ment.
day, a duly stamped agreement for proceedings by reason of the not- am asking this Council to choose Mr. Zeitlyn, because the continua- regarded as most convenient. That
Be it enacted by the Governor valuable consideration had Eeva pemance of any such contra the lesser of two evils. The basi- tion of the September Settlement is practically what was
of Hongkong, with the advice and made between' all the parties to on the Jane settlement day or s Prior to the commencement of
consent of the Legislative Coun- every such contract inter se for the any other date prior to the 2 the Council business, His Excel will have to ask itself whether it wards would be eliminated.
ness community whom I represent and the possible continuation after- ed in the first Bill before
The the Council which lency the Governor referred to the ill not be more honest and only point, where we are in issue, drawn after representations from
extension of the time for the per- day of July, 1925. was, with cll thereof, as follows:- very great loss, which the Council whether it will not be to the better is as to annulment of the contracts. various quarters interested imply- and Colony had sustained owing to furtherance of the trade of the We do not know who these one hun- ing something like a settlement by the death of Mr. Chau Siu-ki. He community generally if, instead of dred business men are, but I can consent, which I can now clearly said the Council would desire to tender their sincere regret to the meeting the impossible demand only say I am sure my two Associa- see is not the case.
which is the difference between the tions regard it as extraordinary, families of all those, who had lost flat rate and the contract price that in a time of emergency like is just one matter of detail I The Attorney General: Sir, There their lives in the disaster, and
plus the unknown quantity which this, there should be one hundred should like to mention, and that proceeded to speak in terms of will in all certain probability be business men, who are likely to re- high appreciation of the late Mr. wanted in September-whether it pudiate the contracts they have en- Chau's public life and work.
will not be a wiser and more honest tered into. The Hon. Mr. P. H. Holyoak, as
course to take the heroic measure of Senior Unofficial Member, and the seeking relief which the bank Mr. Zeitlyn, Would you like to sup-
His Excellency the Governor Hon. Mr. R. H. Kotewall; on be ruptcy jurisdiction of this Colony plement your remarks in any way half of the Chinese Members, affords. If. ΟΠ the also addressed the Council, follow hand,
other Mr. Zeitlyn: If I may, Sir, 1 this Hon, Council would like to address one remark ing which the Clerk of Councils takes the view which it is my duty with reference to what has just was instructed to convey to the
His Excellency the Governor: sufferers an expression of the Coun- for the June Settlement be con- who would be surprised to learn mittee to decide is
to urge upon it that the contracts fallen from my friend, Mr. Shenton, Well, gentlemen, the point in Com- whether it cil's sympathy.
celled, the number of people invol- there are one hundred business men would prefer to continue with the June Settlement Bill,
ved are few. Secondly, the profits of this community who desire to Bill at present before the Council which sellers would be losing are repudiate their contracts. Your that is the second Bill suggested The Council then proceeded to paper profits only. Thirdly, those Excellency and this hon. Council or whether it would adopt the consider the Bill relating to the who have sold their shares and will not forget that this legislation course suggested by Mr. Shenton, postponement of the June Settle- find that the boyers cannot take has been induced by a breach of which practically amounts to going ment, His Excellency the Governor them up would still retain their contract on the part of the Stock back to the previous, edition of the etating that the Council was in shares and these would be of a Brokers' Associations owing to the Eill. My own inclination is to Committee on the Bill and would greater value than such shares are circumstances which have unfor- adopt the latter course. If that be pleased to hear any representa- likely to have in September when tunately arisen in the Colony, and is the view of the Council the Hons.
the compulsory measure of selling the business men feel that in the practical steps to take are that the Mr. L Zeitlyn then addressed which will be indulged in by every circumstances that have arisen, that Committee baving come to a deci- Council as follows: appear on body involved is likely to reduce the fact, patent to everyone that sion, the Council will resume, and behalf of more than 100 business those shares, so that the honest the sources of credit are dried up the Bill must be formally read a men of this Colony, who have investor who has been prudent and and that it is to the greater in second time and amendments can bought shares, which were to have far-seeing, will, at the end of terest of this Colony that its legi- then be inserted in Committee been delivered or settled on 23rd September find himself with timate business should first of all afterwards. June last, and the representations, securities upon which he will not be fostered rather than stock brok-
It was agreed to proceed with which I have been instructed to be able to raise the sums necessary ing Business, that without any the Bill in the form suggested by urge upon Your Excellency and the either to revive industry, or to carry desire to repudate them, they Mr. Shenton, members of this honourable Coun- it on. Whereas, if the settlement think that if there is to be legis-
The Attorney General moved
cil, is that, as the spirit of British is entirely cancelled the shares will lation, the legislation would do the the second reading. The Colonial legislation for the greatest good still have a valve and it is hoped, least measure of injury if it pro- Secretary seconded and the resolu- of the greatest number might be in the circumstances that such ceeded on the lines of the annulment tion was unanimously carried. achieved, that spirit may still be value is likely to grow, whereas in of the June contracts only rather The Council then went into Com honoured by legislating, so that the the other circumstances it is likely than on the lines which are now be- mittee to consider the Bill clause
mallest measure of harm may be to be depressed. These are the fore this hon. Council, and em by clause,
done to the fewest in number, and considerations which I have been bodied the Bill before it, because The amendments as suggested that I am to urge and bring instructed to lay before you, Sir, on these lines the evil seems to be by Mr. Shenton were proposed by -before you for your considera and this Hon. Counell in the greater without end. To get rid of the Attorney General and approv- tion the proposal, that instead interests of this community, and this difficulty they will be ed by the Committee, with the de- of the Legislation which is particularly by reason of the fact compelled to seek the relief letion in the title of the words "and HOW before this honorable that if Jegislation with a which the jurisdiction of the to the facilitation of the carrying Council, there shall be an absolute retrospective effect is to be indulg- Courts afford them unless this out of the June and July Settle- annulment of all contracts for the ed in, it may be indulged in for the hon. Council in its wisdom, having ments." June Settlement. The annulment greater good of the greater num- given consideration to the proposals shall not extend to the July, August ber, or, as 5 put it inversely at the I have had the honour to present and September Settlements, be beginning, that the measure of in- to-day, see fit to legislate that the cause it is only the June Settle- jury be limited to the few in num- June contracts at any rate-not the ment that involves a very consi- ber. Before I resume my seat, 1 July or September contracts because derable number of people in this have been asked to express the ac- these involve few persons.---shall be Colony. The considerations which knowledgments of those whom I got rid of and the evil consequences I have been urged to bring to the represent for the opportunity which which must flow from it by an set notice of this honorabble Council this hon. Council has afforded of annulment. against the proposals embodied in them on this and a previous oc- the Bill now before it, are as fol-casion for expressing its views--an lows: In the circumstances of act which makes this Council more the present case it is wholly impos- truly an inquest of the people of sible for the business community Hongkong and its dependencies. to find the sum necessary to pay the amount involved in the differ
Brokers' Viewb.
Mr. Shenton: Sir, There is one more comment which has just been pointed out to me by a member of the Association, that if the June Settlement contracts are annulled, it will carry with it a great number of the contracts for July, August and September, which have been
ence between the flat rate and the Mr. W. E. L. Shenton: Your Ex- contract rate. The springs of cellency and gentlemen, I am re entered into based on the June credit have been dried up and that presenting here the Hongkong contracts. amount is wholly out of the reach Stock Exchange and the Share Hon. Mr. Holyoak: Speaking of the business community involv- brokers' Association. A number personally, Sir, as one who is not ed. Secondly, although the amount of meetings have been held by interested in this question except to be found is an impossible one, these Associations and at a meet- academically, for the protection of even if it were to be found, the ing of both Associations held yes- trade done in the Colony, the difficulties, that are to be faced terday, they came to a decision by sanctity of contract is a thing by the community, are so large that 36 votes to I, to ask your Excel. which, I think, all of us agree can- there will be no end to their liabi- cellency and this Council to not lightly be interfered with or lity by the payment of the differ modify the Bill that is at present broken. I have felt from-the first, ence between the flat rate and the before you. The desire of these Sir, as you are aware, extremely contract rate, for there will still two Associations je, should your diffident about this Council "deal- be the amount to be found which Excellency and this Council see fit ing in any way with this question, may be due in September. In the to legislato-in-respect of the June and I have felt from the first that interval, it may well be, that in. Settlement day, it should be to the only manner in which it could terested parties may depress the legalise the alteration of the Juhe be dealt with is to legalise a day shares. Even if that is now done. Settlement date from June 23rd to for the Settlement, which became and if it is possible to July 23rd and also to declare the impossible on the day it should conceive, of a counsel of self-denial contracts which were made for the have taken place owing to the state being indulged in by those whose old June Settlement, June 23rd, of emergency existing with regard avocations are on the stock ex- valid in the same way as if they to the banks. change, the interests of themselves had been made for performance His Excellency the Governor:
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