DELTA Shoes for Men

No. 848

KWANGSI SUFFERS

SET-BACK.

(Continued from Page 1.) · On the other hand, the Kwangsi apokesman predists the capture of Canton City on or before Thursday. -Nan Chung Kuo Nerie Service.

Tide of Battle.

Canton, May 22, Tho tide of battle in the nor

$21.40 thern and western districts has

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THE HONGKONG. TELEGRAPH,

LEGAL ARGUMENT IN

BANK CASE.

(Contínued from Paje 1)

wero

to the bank. Mr. Jenkin said that he had been unable to find a case where the circumstances exactly similar to those in the presunt case, but said there were cases where the principles down should apply.

to

was

WEDNESDAY, MAY

diligence tho full facts should SHARE PRICES

TO-DAY'S QUOTATIONS.

Banks,

Hongkong Bank, $1225 b. Chartered Bank, 419 b. Mercantilo, & B., £33. n. P. and O. 49 n. East Asia $90l n.

Insurances.

1920.

have been known to Mr. Messor." So they had found that there had been an absence of reasonable care. and diligence in this regard and that boing so the conclusion which followed as a matter of law was! The following is the list of local that Mr. Messer had to be taken as share quotations issued to-day: having knowledge of what he would) bave obtained hind, he taken rea- sonable care and diligence. The Inidame must apply to Tanng. The circumstances were suffelent to put a prudent man upon Not Ordinary Nish. Inquiry. The ovidence was clear that Tsang was a man possessed In the present case there of that faculty and showed that information available Mr. if he had taken steps to find out Messer and Mr. Black which, if what the circumstances were he attention had been paid to it, should have taken the prudent and the fraud, might have been dis-reasonable course of consulting covered in an early

atage. He

his chief at least. The, finding of submitted that the risk of a blank the jury clearly showed his mental cheque being stolen and pre-state of mind and did not excuse sented with forged signaturea | was one which a bank might be him from taking that course, willing to take, but when the The same element of suspicion, theft was known the risk was would, he submitted, have arisen not an ordinary one and if numin the mind of an ordinary prudent bors of cheques were stolen the man. Trang had said that he risk became, more imminent and thought his eyes and betrayed the customer would not be entitled him. That was Tsang's only sus to say that the risk was

an orpicion. Clearly it was his duty to dinary one.

take ordinary reasonable care! It could not be denied that if troops were forced to retreat to Mr. Messer or Mr.. Black had seen and to, have taken aetion which "Tsingyuen and Yuen-tam upon the wint Tsang had seen on the Brat Would presumably have been to arrival of a large number of cheque book that they would have

communicate with Mr. Messer. tuted some inquiry. That The position would then have would be the only possible con-boon found out and any possibility clusion because it would be the fof forgery of cheques from the only prudent course for them to first book would have been im-

possible.

awayed to and fro during the past three days.

The most serious atmosphere prevalled In Canton on Monday when news Was received that Kwungai troops had galued a de cisive batlie at Sainam and were Fatahan threatening to take On the same day, Government offices together with many impor tant documents were transferred to gunboats anchoring midstream in Canton harbour, whilst General Chan Chal-tong was attending to military affairs

on the cruiser Henfu.

During the afternoon a critical situation was averted when news Kwangal was received that the

Cautonese reinforcements.

Kwangsi Come-Back.

On Tuesday night, the Kwangsl forces agalu launched a counter-have taken. offensive attack in the North River districts, Severe fighting, lastest throughout the night until morn; ing, with the result that Kwangs! troops reenptured Kwantin.-Nan | Chung Kuo Neres Service.

Samshul S01 Keld.

Canton, May 22. A report received this morning states that the Kwangsi troops were severely, engaged last night, but were still holding Hohow and Sumshui

morning.-Nat this Chung Kuo News Service.

:

Heavy Fighting.

Canton, May 21. It is evident that heavy fighting

For eight years previously, cheque books had never been sent Counsel submitted that arising except in multiples of a hundred out of the contractual relations and they had been, sent in books between the parties, there arose of 600 at a time. In view of the duty in the circumstances further circumstances that the known either actual or construc- cheque books were always checked, tional, to communicate with the and that a receipt was duly bank. acknowledged, "If Mr. Messer had seen what Tsang had seen it was clear that he would have made some inquiry.

Misleading Eyes,

He would not have been satisfied with the more belief that possibly his eyes had misled him and that, he had received the book in Lhat state from the bank. He

Mutual Safeguards.

is still golig on bath at the East-must have made some inquiry. for the purpose of protecting their

ern front as well as in the North- River District.

Mr. Jenkin said they would find from Mr. Messer's evidence as a whole the position was that for 29 years to his knowledge there had been a system of inter-communica- tion between the Bank and the Treasury Department, the under- lying motive being the safeguard- ing of both parties against fraud, The most rudimentary inquiry mutual interests. Mr. Messer had of the bank would have disclosed himself said if he had made the dis- According to latest reports, It the fact that those cheques had covery he would have acted at once. aeems that the fighting on the been extracted. He much have

Mr. Jenkin asked his Lordship to East front is, in the district become to the inevitable conclusion tween Wainhow and Boyuan, and there must have been in his consider whether or not by the ex- which is about 150 miles from mind obvious grounds for suspi-ercise of reasonable diligence Tsang Canton, while at the North front cion of a forgery. There was no On-wing could have obtained know- the operations are at Chingyuan, other conclusion to which he could ledge of the affair with regard to the cheque-book. All other facts Yuan Tam and Shek Kock. These have come. places are about 70 miles from Canton.

Mr. Messer did not see the cover being datablished, the silenco .not Conly an inducing of the book and he did not make was.

tho action of the the discovery that Tsang On-wing cause to made for the reason that he had Bank In honouring the cheques,

but in

in- fact, actually deputed duties to Tsang. But by

On the West River front, the Kwangsi troops have received a set

ck as the result of a counter-nt- tack by Canton troops under Gen-deputing those duties to Tsang he duced them to honour the cheques, eral Heung Hon-ping.

enuld not get out of the performance of 'whint would be

Л prudent

Counsel further submitted that Mr. Messer could be taken, in law, Act as having full knowledge of the fnets which were such as to war- rant only one conclusion, that forgery was a possibility. It was therefore his bounden duty to act, and his failure to do so negligence.

on his part. Although he did not see the book and did not at the time know of the alteration to the cover he should have known.

Another report states that Sam- shui was henvily attacked by large forces of Kwangsi troops on Sun- day. The town was occupied, and the invaders later advanced as far 119 Sainam where the Canton forcen made a strong stand at the

If these duties had been deputed railway bridge. Acroplanes were

to Tsang it was clearly Tsang's Jater an up and defence lines of duty to report whatever ho believed the Kwangsi troops were heavily to be, the reason for the altered bombed. Thus the advance of the cover and the book being thirty Kwangni troops was checked.

cheques short.It was his duty to report his And to Mr. Messer:

On the North River,

+

If the position was to be, as a Along the North River, the Can-matter of law, that there would be

ton forces, with the object of re- no obligation on Tsang's part to covering strategie points along the report because he was lulled into Jeft bank, delivered a general at a sense of security, the position tack on the Kwangsi forces under would be that a man who did own Generals Wang Ying-yu and Wong certain duties to a hanker would be entitled to depute them to a per- Yuk-che on Monday, Heavy casualties were suffered on both son of extreme mental density and sides, but the Canton troops did

so get out of many of his fiabili- not succeed in driving back the ties. enemy until retiforcements arriv ed from Canton on the following morning.

Latest official messages state that the Kwangsl troops have evaeunted the left bank of the North River.-Nam Chung Po.

Shipping Dangern. Following a notice to the effect that vessels proceeding beyond Samshui do so at their own risk, another Notice to Mariners issued yesterday stating that no restrictions are in force for ships salling to that port. The notice is as follows:

With

"There are no restrictions for ships proceeding to Samshuf though there is risk of being fired

Mr. Messer's Knowledge.

That Mr. Messer should have bad constructive knowledge of the state of the cheque book and of the true position of the state of affairs was, he submitted, clear in law,

Having got the information from Tsang, as in law he must be taken to have, as it was Tsang's duly to make a report, it was his duty to instigate inquiries,

If he failed to do that he must be taken in law to have done what he ought to have done. That prin- ciple had been applied in commer- cial cases and in cases of banker and customer.

Quoting from Padgett on "Bank. ing Mr. Jenkin said: "If a man on. Ships are warned against knowa, or has reasonable, ground proceeding *beyond

Samshui, for believing, that his name has Ships sailing to-night (Tuesday) been forged, or filled in a cheque, are recommended to arrive off and is due to be presented for Samshul at 8 a.m, by which time n payment, he is bound to warn the British gunboat will be on the banker of the fact with reasonable look-out."

despatch."

VOID NOMINATIONS.

If there was a duty to communl- cate a certain fact, said counsel, it was not necessary that those facts should be actually known to the customer. It was sufficient to establish constructive knowledge EFFECT OF THE DEATH OF

of them. If Mr. Messer had seen THE EARL OF ROSEBERY. the altered cheque book then, there was a circumstancs such as London, May 21,

would have exclled in his mind Among racing nominations rendered the necessity for an inquiry and void by the death of the Earl of

that would have brought home to Ranchery are:

Midlothian and The Bastard for him an indication that there was the Derby and St. Leger, Kitty Fisher a possibility of the cheque. forms for the Oak, Camelford for the Man-being used as an instrument' of chester Cup, Coronation Cup and forgery. He should have known Ancot Gold Cup.

by reason of the fact that he had

All bets are cancelled. Midlothian had been well backed

for the Derby, one het being taken at 10,000 to 1,000, before it ran so

an agent in those matters. That was made clear in Halsbury,

On the question of knowledge,

exercise of reasonable care and

well in the Newmarket Stakes the jury had found that by the

Reuter.

was

The argument is continuing this afternoon.

Canton Ins., $695 b. Union Ins., $365 8. North China, Ins., Tis. 160 b. Yaugtazo Ins, $50- n, China Underwriters, $2.30 s. China Fires, $300. b. H. K. Firo Ina, $775 n.

Shipping.

Douglases, $33 s.

H. K. Steamboats, $20 s. H. K. Tugs,. $2.60 8. Indo-Chinas, (Dof.) $70_n. Union Waterboats, $22

Mining.

Benguots, $22

Kailane, 66/- b.

b.

Langkatu, Tls. 14 n.

П.

S'hai Explorations, Tis. 2.75 s.i Raubs, $6 25 n. Tronohe, 17/6 in.

Docks, etc. Kowloon Wharves, $1221 b.. Whampoa Docks, $36 n. China Providents $4.35 B Hongkowe, Tle 178. n. Now Engineerings, Tis, 5.65 b. Shanghai Docks. Tls. 125 8. Cottons,

Ewo Cattons, Tls. 12.50 s. Orientals, Tla. 2 b. S'hal Cottons, Tis. 72 (old) s. Lands, Hotels, etc. H. and S. Hotols, $8.80 H. K. Lands, $621 b. S'hai Landa Tls. 143 n. Humphreys, $14.35 b. Realties, 28.35 n.

11.

Public Utilities. Tramwaye, $18.3) n. Peak Trams, (old) $12) b. Star Ferries, $661 b. China Lights, (Old) $13.60 s. H. K. Electrics, $57 . Macao Electrics, $261 n. Telephones $7. b. China Buson, Tis. 14). Singapore Tractions. 11/6

Industrials.

China Sugars, '80 sa, Malabons, $27 b.

b.

Canton Icas, $1.80 b. Coments (Comb.) $8.30 s. Ropes (Old) $7.10 n. United Asbostos 85.b.

Stores, etc. Dairy Farms, $19.25 b. Watsons, $12,90. 8. Der A. Wings, '80 b. Lane Crawfords, $28: Mackintosh, $18 b. Sincores, $11.80 b.

Miscellaricous, Amusements, $30. Constructions, $1.25 .. B'que Ind. G. Bonds, 67% H. K. G. Loan 61% 8. Prom,

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|CABLED QUOTATIONS FROM NEW YORK,

The following quotations as at the close of the market qn, Monday have been received from their correspon- donte, Mesars. Hayden, Stone and Co., of New York, by Messrs. Swan, Culbertson and Fritz, Sassoon House, Shanghai, (cable address "Swanstock," Shanghai), who are not responsible for cablo mutilations. These quota- tions are subject to confirmation:

Previous Latost. Prico, Prico.

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