135

136

38

the compradore, the master learned what had happened at Tak Hing (the compradore is a Chinese supercargo who has the sole management of the ship). The officials offered to release the ship if one of the crew would consent to remain behind in custody. The compradore offered himself, but the crew would not permit this, and none of them were willing to remain instead. The vessel was, therefore, detained, pending reference to Canton. The ship's cook, who had called the soldiers pirates, was arrested and taken ashore and put in chains.

-;

A British gunboat arrived at Doshing on the 9th August, and the commander, on hearing the master's complaint, sent an officer and the master of the "Tai Ming ashore to release the cook; they cut the prisoner's chains and brought him without opposition on board the “ Tai Ming, which then sailed for Canton. The commander of the gunboat warned the head of the Doshing bureau that his action against the

Tai Ming

was piratical, ordered him instantly to cease searching British ships and threatened serious consequences if he continued. The consul-general telegraphed to the commander that the "Tai Ming had not observed certain regulations, and was not entitled to British protection in inland waters, and the commander pointed out that the British flag had been deliberately fired on, British lives endangered, and a man under the British flag arrested by Chinese officials.

The Ministry for Foreign Affairs in Canton sent a violent protest to His Majesty's consul-general, and the matter was also ventilated in the press under the heading, Brutal conduct of a British gunboat." The consul-general reports:—

L

K

I have replied to the protest as best I can, but the crew of the Tai Ming

were undoubtedly smuggling salt; it is admitted in the master's report; .

and it is well known that a regular smuggling trade in salt and opium is carried on by all these Chinese owned ships flying the British flag and stopping at ports of call on I do not in the least blame the naval officers, who are trying to protect British shipping in circumstances of great difficulty. What is to blame is the system by which Chinese can freely acquire the British flag, and the extension of treaty privileges to persons they were never intended to cover.

the West River.

33. S. Soskin and Co. (Limited), Harbin, 1922–27.

S. Soskin and Co. (Limited), were incorporated in Canada on the 1st April, 1921, with a capital of 1 million gold dollars, of which 25 gold dollars was held by British subjects. The directors and employees at Harbin were all Russians subject to Chinese jurisdiction. When it suited them they traded as a Russian firm, running steamers under the name of Soskin Brothers on the Sungari River, which British subjects were not entitled to do.

39

A Russian named Kasatkin owed Soskin and Co. 161,557

yen; he also owed the Yokohama Specie Bank 237,330" yen. Soskin and Co. assumed the latter liability and advanced him a further 60,000 yen, making a total of 458,887** yen. Kasatkin then executed a mortgage of certain properties to Soskin and Co., stipulating repayment by monthly instalments of 75,000 yen, including interest at 18 per cent, per annum, beginning on the 1st January, 1923. The legal title was transferred to Soskin and Co. and duly registered in the land office of the Chinese Eastern Railway and in the Land Register of the British consulate on the 24th July, 1922. Kasatkin's Chinese creditors claimed that the transfer was fraudulent and was intended to defeat their claims. They instituted proceedings in the Chinese Court, which, in September 1922, within two months of the transfer, issued a writ of attachment against the properties. Kasatkin, however, had already surrendered his equity of redemption to Soskin and Co. against a further payment, which brought the purchase price up to 600.000 yen. His Majesty's consul disputed the claim of the Chinese court to seize land registered in the name of a British subject, and the Chinese authorities argued that the registration was illegal and that Soskin and Co. (Limited), being composed of Russian subjects, were not

court.

39

entitled to British protection. The dispute dragged on, and on the 15th June, 1926, under instructions from the Foreign Office, protection was withdrawn from Soskin and Co. His Majesty's consul, however, pointed out that the question was one of jurisdiction rather than protection; Soskin and Co. had obtained registration in a regular manner, exactly as all other British property was registered; if the Chinese court could invalidate Soskin and Co.'s title, then no British title to land in Harbin was safe. On the 4th July, 1927, the Chinese Court issued a notice that part of the property in question would be sold by auction by order of the His Majesty's consul, therefore, inserted in the local press a notification to intending purchasers that no valid title could be acquired to the property save by transfer effected through His Majesty's consulate (similar action had already been taken on two previous occasions). On the following day the court issued to the press a notification challenging the right of His Majesty's consul to intervene in the matter, and proclaiming its intention to protect the interests of persons who might purchase the property. The auction was held on the 23rd July as announced, but nobody appeared to bid. The Chinese Court then reduced the reserve price by 20 per cent., advertised the auction again for the 30th August, 1927, and took steps, of the nature of intimidation, to prevent the publication by His Majesty's consul of any further notification as to the title. In the mean- [F 1263/1268/10), time, however, the Bank of Chosen expressed a desire to take legal 1926. proceedings against Soskin and Co. in respect of an unsecured debt of [F 2370/1263/10), 517,706 yen, but under pressure from His Majesty's consul consented to [F 7744/7744/10], take a mortgage of the property in dispute. The legal title was transferred 1927. to the Bank of Chosen on the 10th August, 1927, and the registration in [F 7985/7744/10), His Majesty's consulate cancelled.

[16827]

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1926.

1927.

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