1928-12-20 — Page 4

DODWELL & COMPANY, LTD.

FOR NEW YORK AND BOSTON via SUEŻ.

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BRINDISI, VENICE & TRIESTE

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NEXT SAILINGS,

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£80.0.0.

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S.S. "VENEZIA”

·S.S. "TIMAVO"

M.V. "REMOR

From Hong Kong.

Saila hence on/or about 3rd Jan.] Sails hence on/or about 22nd Jan .Saila hence on/or about 31st Jan.

HOMEWARDS FOR BRINDISI, VENICE AND TRIESTE.

M.V. "ROMOLO"

5.S. "VENEZIA"

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+

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Saila hence on/or about 8th Jan. .Sails hence on/or about 5th Fob. .Sails hence on/or about 22nd Feb.

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FROM CALCUTTA & COLOMBO TO SOUTH AFRICAN PORTS."

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TENYO MARU

KOREA, MARU

Wednesday, 23rd January. Wednesday, 6th February. LONDON, MARSEILLES, ANTWERP, ROTTERDAM via

Singapore, Penang, Colombo, Suez,

KATORI MARU

ATSUTA MARU.

Saturday, 20th December. Saturday, 12th January,

SYDNEY & MELBOURNE via Manila & Ports.

AKI MARU

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Wednesday, 23rd January. Wednesday, 20th February.

BOMBAY via Singapore, Penang, & Colombo.

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SOUTH AMERICA (West Coast) via Japan, Honolulu, Los Angeles,

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Sunday, 23rd December.

LIVERPOOL via Port Said, Geneva, Marseilles.

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CALCUTTA via Singapore, Penang & Rangoon."

† RANGOON MARU

+ GENOA MARU

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Saturday, Sunday,

+HAKODÁTE MARU (Kobo direct). Friday,

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† MITO MARU

†Cargo only.

20th December, 6th January.

Monday,

21st December.

24th December. 24th December.

26th December.

Monday, Weḍuesday,

Reduced 1st Class Excursion Rates quoted between Manila and Australia.

For further information apply to-NIPPON YUSEN KAISHA. Tel. Central No. 292 (Private exchange to all departments.)

O.

S. K.

SAILINGS FROM HONG KONG SUBJECT TO ALTERATION..

LONDON, HAMBURG,

ROTTERDAM B ANTWERP Via Colombo, Suez. and Port Said. ALTAI MARU

............................................. Monday, 7th January.

PETITION TO GOVT.

(Continued from Page 3.)

THE CHINA MAIL,

means, in accordance with consti tutional principles, to prevent auch evasion, without resorting to the simple but unfair expedient (2) Suppose, further, that B, a of punishing the innocent with the

month later, has to make a guilty.

19. That Your Petitioners sub. business trip to Canton. Be- fore he leaves, he would na-mit that, in fact and in truth, turally entrust his marketable there is no substantial evasion of either case, and beg securities to the custody of Duties in

Estate Duties

20. Estate Duties,

his partner or some respon- leave to deal with each case in Bible agent. Suppose that, turn.. during B's absence, A, for pressing business reasons, de- sires to sell out the shares. How would A complete the proposed transaction and ob- tain a "ro-conveyance" from E, who is absent?

(3) In some well-known companies the shares of which are re- garded as first-class invest- ment, the directors exercise a as to very strict discretion

not allowing more than a cer-' tain number of shares to be

registered in the name of a person. At present anyone wishing to buy shares in such for reasons a company, but

(1)

indicated above, is unable to obtain a registration of such shares'in his name, adopts the expedient of having the shares transferred in the name of a trusted nominee who hands back to such a person the

blank (3) scrip together with a transfer. How

can such a person now invest his money in such shares?

a

That Shares. belonging to deceased person, which were his at the time of his death, and although accompanied by blank transfers signed before his death, of course constitute "property of which the de- ceased was at the time of his death competent to dispose" and are able As such to Estate Duty (Estate Duty Ordinance, 1915, section 5 (1), (a).)

▾

and a false declaration renders the person making the same liable, to the severe sanction of the law of perjury. Moreover, heavy penalties are imposed by the Ordinance for "Inter-med- dling" (Section 19): and for delay in lodging the account with the Estate Duty Commis sioner (Section 12).

(7) That Your Petitioners aub-

mit that the existing law

THURSDAY, DECEMBER 20, 1928.

CANADIAN

should therefore furnish a auf-00

ficient deterrent to evasion.

Your Petitioners venture to suggest that if it is not offec- tive in stopping evasion in tote, It is because, human na- ture being what it is, no law

can abolish crime in its entire- ty.

(8) That having made their hum- ble submissions that the pro- posed legislation cannot be justified by the plea of prevent- ing the evasion of Duties, even If such evasion in fact, exists, 'but that. In practice, there is, and can be, no substantial eva- sion of Estate Dutles, Your Petitioners beg leave to-dea!! with the other avowed object of the Bill, namely the preven- tion of the evasion of Stamp Duties.

Stamp Duties

21. Stamp Duties. (1) That Your Petitioners respect-

(2) That whatever might have been the practice in the past, Your Petitioners understand that the practice is,, and has for some time been, for the Estate Duty Commissioner to notify all the local companies of the death of any person, res presentation to whose estate is being applied for, That in any case such a prac tice could easily be introduc- ed. Under auch a practice, on receipt of such a notification, the company concerned would Inform the Estate Duty" Com-(2) missioner of any transfers which had already taken place, and such company would hold up any application for trans- fer sent in subsequent to the notification, until the Estate Duty Commissioner had been: communicated with and his sanction had been obtained. That Your Petitioners under- atand the following cases are merely examples of numerous similar cases within the experi- ence of local legal practioners: A well-known Chinese gentle- man, a few months prior to his death, took out from his bank some 'Union' shares which he sold to meet some business obligations.

(4) Frequently shareholders who are desirous of having some- one to be on the Board of Directors to represent and look after their interest lend shares to such a

person to enable him to have the neces- sary qualification shares as a director. In such cases the usual procedure is for the shareholders to transfer, the necessary shares into the (4) name of the proposed director, whe hands back the scrips to- gether with blank transfers to the true owners. How would such shareholders carry out such an arrangement under the new provisions?

(5) Loans are frequently obtained од the security of partly paid-up sharers under the -existing practice of blank transfer, when lenders are satisfied with the temporary financial position of the com- pany, and are not themselves subject to any risk of future calls. They would not lend if the shares had to be trans- ferred into their names.

No Substantial Evasion 15. That, indeed, Your Peti- tioners submit that the manifold and well-nigh. insuperable difficul- ties in the way of compliance with

(a)

The purchaser

took possession of the scrips and blank transfers, but did not send them to the Company. for registration until some time after the seller's death. What happened? The trans-{ fer was held up: it was only after the Estate Duty Commjs- sioner had been completely sa- tisfied by the clearest evidence of the bona fide sale prior to the seller's death; and that the shares were accordingly, not liable to duty, that the pur, ehaser could perfect his regis- tration.

the suggested provisions, having (b). Annother Chinese gentleman, regard, on the one hand, to the time which the registering com- pany must necessarily take, în às- certaining the genuineness of the transferor's signature, in making enquiries from the transferor 80 as to obviate the risk of fraud or

forgery, and in generally perfect- Ing the transfer, and, on the other urgency hand, to the frequency,

and multiplicity of everyday com- mercial, business, and friendly transactions are too obvious to be laboured by Your Petitioners.

19

16. That Your Petitioners (5) (humbly suggest that, As regards imposts such as Estate Duties, the possibility of their evasion must inevitably increase in proportion to the degree of what Your Peti- tioners may loosely describe "negotiability", possessed by the property which it is sought to tax. For instance, Your Petitioners venture to think that there is no property which is more susceptible of evading Death Duties than bank notes And Currency, and yet would anyone Buggest that the negotiability of bank notes and Currency should be destroyed, or even impaired, for the sake of pre- venting the evasion of Death Dutles?

RIO DE JANEIRO, SANTOS & BUENOS AIRES-Via Baigon, Singapore, the way they please,"

1

Colombo, Durban & Cape Town. MANICA MARU

BOMBAY Via Singapore & Colombo.

17. That the proposed legisla- (a) tion, will fundamentally affect the proprietary interest of sharehold- ora. It will prevent auch share- holders from exorcising their vest- Singapore ed and legitimate rights of deal- ing with their own properties in It will, th short, eatail consequences on shares which can fairly be des cribed as revolutionary in their (b) effect and disastrous in their operation. And it will, finally,! necessitate the creation by the Executive, for the purpose of carrying out its provisions, of twoj entirely new, privileged and arbi- trary classes of persons, ie, "Au-

Saturday, 29th December.

SHUNKO MĀRU

Thursday, 3rd January. Monday, 7th January,

(Calle at Penang & Karachi).

SHINYO MARU

DURBAN, LOURENCO MARQUES, BEIRA, DAR-ES-SALAAM, ZANZIBAR

& MOMBASA-Via Singapore & Colombo.

MEXICO MARU.............

Sunday, 5th January..

CALCUTTA--Via Slugapore, Penang & Rangoon.

* TACOMA MARU

.... Monday, 81st December. (Calls at Bolawan Doll);

VICTORIA, SEATTLE, TACOMA & VANCOUVER Via Japan Ports From thorised Bankers" and "Authorised

MELBOURNE-Via Manila, Belebane & Sydney.

Shanghai.

BURMA MARU

BAIGON

HAITHONGVía Hoho

... Baturday, 5th January,

NEW YORK-Via Japan. porta, San Francisco & Panama.

HAVANA MARU

JAPAN PORTS.

SEATTLE MARU

HAVANA MARU

KEELUNG Via EWATOW & AR0%.

CANTON MARU

HOZAN MARU

TAKAO Via SWATOW & AMOY.

DELI MAKU

TAKAO & KEELUNG

BATAVIA MARU

For further particulare please apply Tel. Central No. 4088, 4089, 4090,

Sunday, 6th January,

Sunday, 23rd December. Bunday, 8th- January:

Sunday, 23rd December Noon. Sunday, 30th December Noon,

Thursday, 27th December 18 a.m.

Thursday, 20th December, to-OSAKA SROSEN KAISHA.

M. TAKEUCHI, Manager,

Dealers."

18. That, entirely apart from; and. Irrespective of, the practical difficulties referred to above, Your Petitioners humbly but earnestly (6) submit. that such legislation.can-! not be supported unless an over- whelming case of necessity, and in the interests of the well-being of the community as a whole, could be made out by the Government. Your Petitioners humbly submit that mere evasion of Dutios' em- phatically cannot constitute auch a caso, for it should be the duty of the Government to devise some!

He

who had purchased certain shares and hud them transfer- red to his name, sold them years before his death. died insolvent, There was no "state" to be administered, } and no application for legal representation to his estate was necessary, Before the true owner could effect the neces- sary transfer, the Estate Duty Commissioner had to be simi- larly satisfied.

Remedy for Evasion Having regard to such safe- guards Your Petitioners Bub- mit that evasion of Estate Duty must be rare, If any evasion

still exists, it must, it is con- ceived, be confined to the cases where the death is unknown to the Estate Commissioner, and the estate consists of property of such a nature that, as a matter of practical necessity, no application for legal repre sentation need be made. Cases of this kind would probably be few and neglibible. Moreover, as rogarda such cases, and, indeed, other possible cases of evasion, Your Peti tioners submit that a cogent answer to the suggested de- sperate remedy is as follows: Ir the death takes place inj

even

fully contend that there can of course bo no question of "eva- sion" unless there is some sub- sisting legal liability which is being evaded.

That the Stamp Duty Ordin ance 1921, Section 29 (1) pro- vides:

"Where the consideration, or any part of the consideration, for conveyance on sale consists of any shares or marketable securi- ties, the conveyance is to be charged with ad valoremt duty in respect of the value of the shares or securities on the day of the date of such conveyance," (3) That Heading 40 of the Sche-

dule to the Ordinance says:: "(1) Transfer of shares 20 cents for every $100 or thereof of the value

part

of the shares on the date of stamping.. Feriod within which the Instrument must be stamp- ed; Before delivery by the boker....."

(4) That in their preliminary ob-

(5)

4

PACIFIC

S.S. "EMPRESS OF ASIA"

will leave Hong Kong

for

MANILA

THURSDAY EVENING, DECEMBER 20TH

་

All passengers must be on board at 5 p.m. før medical inspection,

The ship will sail from Manila for Hong Kong on Saturday, December 22nd, and is due in Hong Kong, December 24th.

CANADIAN PACIFIC EXPRESS

TRAVELLERS CHEQUES

PAYABLE THE WORLD OVER.

THE SAFEST AND MOST CONVENIENT WAY TO CARRY FUNDS.

Passenger Department: Freight and Express:

Tel. 0.752

Tel. C. 42

Cables: "GACANPAC."

Cables: "NAUTILUS."-

BRITISH WUCHOW LINE

When they pass the Shiuhing Gorge,

Whilst

servations. Your Petitioners the American travellers say "Wall, we have already submitted that a transfer of shares is not legal-guess this beats the Hudson River, our show place.", Continental visitors ly complete until the same has been registered with the Com- remark that it reminds them of the

"Rhine and Switzerland." pary, and that the practice of

British tourists déclare "Surely, the dealings in shares by means of blank transfers, and without! Lake district or the Scottish moors, but with a tle less vegetation." completing the transfers, is of

Now why not take a five-days' round historic origin, and is well- known and well established. trip and see for yourself. It costs you The stamp on the transfer is only $40. payable in respect of the com- plete "conveyance not in re- spect of any intermediate deal- ings with the mere right of ultimately calling for the com- pletion of the transfer by the ultimate purchaser or other party entitled, eg. a mort- Kagee.

That this is the position recognised and acted upon in England is shown by the fol lowing quotation:

"That transfer, in the case of a purchase on a Stock Exchange, contains the price payable by the ultimate purchaser. Where the transaction has passed through intermediate

This purchasers, price may differ from that to be received by the transferor, and a note to this effect is to be found upon most forms of transfer used by stockbrokers. Whore this

(Continued on Page 8.)

DECEMBER. SAILINGS.

DEPARTURE HOURS:

Hong Kong 5.30 p.m. Wuchow 2,00 p.m. 5.8. "TAI HING"

[1,068 tons-Capt. 0. B. Wilks.]

FRI. WED.

DECEMBER.

21st MON. 31st 26th

ין.

8.S. "TAI MING" [640 tons Capt. G. J. Spink] DECEMBER. SUN.

23rd SAT.

For information apply to

KWONG WING

87. Connaught Road West, Phone: Central 893.

American Express

Travellers Cheques

2916

Coi

"Sky-blue" in colour, these Cheques give travellers the fullest protection against the loss or theft of their travel funds. They are spendable and acceptable everywhere. For more than 36 years travellers the world over have. found personal service and financial security thru their use.

Issued in G.$ro, G.$20, G$50, G.$100, and £5 and £10 denominations-bound in a small handy wallet-and cort only 3⁄44 of 1 per cent. Secure your steamship tickets, hotel reservation and itineraries; or plan your cruise or tour through' THE AMERICAN EXPRESS CO., INC.

4, DES VOEUX ROAD CENTRAL,

Hong Kong.

BANK LINE

Hong Kong, the Government ELLERMAN

should experience no difficulty: in ascertaining such a death and acting on it, on the fair assumption that there is buai-· neeslike, co-operation between the Estate Duty Department and the Registrar of Births and Deaths.

In any event the Bill can be no more efficacious in prevent- ing cases of wilful "evasion, since care would naturally be taken to get the person to sign the blank transfer before his death, and to obtain due roś gistration under the suggested provisions. Indeed, in the realm of criminology, forging the deceased's signature to a transfer, for the purpose of evading duty is of course not unknown.. That application for legal re- présentation involves the mak ing of an oath or aftrination verifying the account which has

to be filed.

with the Estate Duty Commis-] slazer, and in which is set out "all the property In respect of which Estate Duty Is payable upon the death of the deceased" (Estate Duty Ordinance .1915, Section 10):|

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UNITED KINGDOM & CONTINENT

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*Passenger Steamer:-Fares to London-1st Class £80, 2nd Class £55.

NEW YORK, BOSTON, & BALTIMORE

ALSO AGENTS FOR

ELLERMAN LINE

9th January. 9th February.

AMERICAN & MANCHURIAN LINE

ANDREW WEIR & CO.

BOSTON & NEW YORK

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SERVICES TO

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via Suez Canal

MAURITIUS & SOUTH AFRICA

AMERICAN & ORIENTAL LINE

..11th January

15th February. ORIENTAL AFRICAN LINE,

Loading for Mauritius, Reunion, Delagoa Bay, Durban, East London, Algoa Bay (Port Elizabeth),

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Through Bills of Lading Issued to Beira, Quilimaine, Tho, Port Amella, Mozambique, Chinde Inhambane, Zanzibar, Mombase, Kilindiai, Fort Nolloth, Laderita Bay, Walvis Bay Madagascar,

ין

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