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3

large amount credited as received from sales of

opium is at once found debited to a person in the

payment side, the opium having been issued on credit.

The total capital of the company, which

26

adopted the nome Yue Hing, was found entered in one lump

sum of $3,000,000 under the date 29th of September 1924.

There are constent financial transactions with an office

maintained with a small staff in Hong Kong and it is

probable that the larger part of the funds of the Company

was kept in various banks in Hong Kong, and that this

office made the remittances required for the purchase of

ópium in Persic and Kwong Chow Yan. It is certain that

other books were kept in which were recorded other payments,

for there are several instances in connection with the

arrival of shipments of opium, when only a portion of

the expenses which must have been incurred are found

mentioned in these books. The books are not strictly cash books in the European sense of the term, as they contain various items where no cash actually passed in

respect of the item recorded. An entry was made at the

in order

time that it might be carried over to some other book, such

as a customers' ledger. In many cases it is difficult

to know whether payments to a Bank are deposits to the

company's account or in payment of drafts etc.

Only the books for the years 1924/1925, 1925/1926,

1926/1927, were examined, in the case of the first year

only the larger payments were examined, but the books for

the last two years were examined in detail, and full

extracts taken, a summary of which is given in the various

annexes.

3.

Organisation of the Company.

The capital of

the Company as stated above was $3,000,000.

Lee Hyson

declared

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