COPY.
NO. 62.
Sir,
241
Coal mortgaged to National Bank of China seized by viceroy.
M. M. Consulate-General,
Canton, 9th. December, 1905.
:
I beg to acknowledge receipt of your tele-
-graphic instructions of the 23rd. November, regarding certain
coal seized by the viceroy, mortgaged by Fung Hua Chun to the
National Bank of China.
Not being in a position to obtain locally
the information desired by you, both rung Hua Chun and the Nationai
bank being in Hongkong, I placed myself in communication with the
Government of the Colony and now beg to forward copy of a Despatch
with five enclosures received from the Governor, furnishing full
particulars of the situation.
Shortly stated, the facts are as follows. The
Coal in question was mortgaged to the bank by Hung Hua Chun on the
28th. January, 1905, but it was not until September, some nine
months later, that the Viceroy brought his charges against Chou
Tung Shang. The viceroy's contention therefore that rung Hua Chun
and Chou Tung Shang were acting in collusion in mortesgl02 the
coal so as to prevent its confiscation by the Chinese Government,
must fall to the ground.
The viceroy further contends that the coal is
not the bona fide property of Hung bua Chun, but of Chou Tune Shang.
Even admitting, for the sake of argument, that this were so, the
coal was nevertheless mortgaged at a time when there was no case
or claim whatever against Chou Tung Shang by the Viceroy. The
Eank, therefore, would still be justified in claiming the coal as
their property under the mortgage. They would rightly argue that
it