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Do you remember having a row with Tatem ?---- Yes, over the power of attorney which I refused to return to him.
You threatened to have him turned out of the shop-I did.
I put it to you that that was when he was demanding a statement of accounts ?-No, he asked for his power of attorney which I refused to give to him,
His Lordship-If he had asked yon would yoa have giver it to him -I should have referred him to Mr. Howell.
Tang Kee was then called. He stated that he was the sole proprietor of the Hongkong Butchery since 1897. Mr. Howell had no share in the business. He paid $200 for it,
Cross-examined:
Do you pay Mr. Howell any commission for any services-No.
No commission of any kind has ever been paid by you to Mr Howell --None whatever.
Do you ever make out a balance sheet ?- No. Why should I? The business is my own.
Because you have fokis whom you pay & bouns on the profits P-No. I give them a certain cumshaw.
Your business has been a successful one from the beginning-Middling.
You have made money from the beginning every year P-Sometimes yes; sometimes no.
By his Lordship:
You have had this business for 13 years 2- Yes.
And yon are not dissatisfied with your har- gain? No. When did I say so P
You have a good business --Middling. What induced you to take it over?-I was in the market and knew that it was a good basiness.
Were you surprised that it was closed-No. Young Chung told me he was not doing as well as he ought, and he advised me to buy it as I was in the business.
When did he tell you this ?--After the busi- ness was closed,
Did you ever have any talk with Young Chung in December? No.
You saw he had European customers 2-Yes And you thought in buying you would make use of the name and goodwill ?--Yes.
Which you did P-Yus.
Before yon bought did you look at the books?
No.
Did you form your estimate from the number
of customers you saw ! -Yes.
Re-examined:
Mr. Howell does not deal with you for any- thing but meat?-Only meat.
Mr. Potter-I can pat in Mr. Howell's other bills.
His Lordship- I don't see the drift of it. Mr. Potter-It has been suggested that Mr Howell belongs to this business or a great part
of it,
ast
Mr. A. R.
Lowe, chartered account- and partner in the firm of Lowe, Bingham & Matthews, was called. He had examined the books of the Houg- kong Butchery produced in Court and hadĮ made out a profit and loss account and balanc sheet for the first four mouths' trading. The profit and loss account showed that the total realised on sales was 814,812. 2, showing a profit on gross sales of $200, and, adding the working expenses, there would be a loss of $1,558.72 on the trading for the first four mouths.
Witness stated that he had attached a fontuote to the balance sheet stating that in his opinion the statement fairly disclosed the position of the business on January 31st, 1896, and the record of receipts and payments relating to the period under review was disclosed by the books, From the uniform nuture of the bookkeeping and the system employed he saw no reason to donht their veracity.
Is the loss shown on the profit and loss ac count attributable to any withdrawal of capital --No, that has nothing to do with it. Mr. Howell never drew anything in any on month between October and January. fle did not draw as much out as he pat in. In De- cember hy paid in $500 and drew out $50.
You did not think that the business was upset by Mr. Howell withdrawing capital P--Oh, no.
His Lordship--It is obvious that the loss shown on the balance sheet is profit and loss account and does not touch capital.
Witness was examined as to the balance sheet propared by Mr. Barker and enid it was practically correct.
Hs Lordship asked Mr. Love to consider the figures with a view to auswering the question whether on the four mouths' figures there was not a profit shown and to say whether there was not the making of a good business in it.
The hearing Was morning.
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