1929-12-11 — Page 2

HONG KONG AND SHANGHAI │THE CHARTERED BANK OF

BANKING CORPORATION.

Batborted Capisał - 450,000.000 Issued and Fully Paid

1400179 Pundas-

$30,000,000

Wieling # 6,006,000 Filter mens§14,000,000 Bezerra Llablilty al Propelatore 20,000,000

BEAD OFFICE: HONG KONG.

BOARD OF DILECross-

W. It. Bell, Paqi Chairman,

1. A. Plummer, Eng.

Deputy Chaleman.

2. D. P. Baith, Kus.

H. Compton, Esq.

M. T. Jakson, Esq.

M. Lander Lawls, Pag.

ANOT

BANGKOR

BATAVIA

BOMBAY

CALCUTTA

CANTON

DERFOO

COLOMBO

DAIRIN

FOOCHOW

HAIPHONG

HAMBURG HANKOW

HABHIN

JUNGKEW

نامة

POH

JUHUBE

LOBK

KOWLOON

W. L. Pattanden, Esq.

T. E. Paso, Esq.

T. II. 1. Bhaw, Esq.

J. P. Warren, Esq. Chlor Manague. Elon. Mr. A. U. Kyrna.

BRANCHES :-

KUALA LUMPUR

LONDON LYONA MALACCA MANILA

MOUKDEN

NAGABAKI

NEW YORK

THIPINO

MANANO

MASOCON

SAIGON

SAN FRANCISCO

SHANOMAT

SIRDAFONE

DOURADAYA

SUNGEI PATANI -” PIENTSIN

TOKTO

INOTAU

TOKUHAMA

Ourtat counts agraed in Loom! Currenes and Fraud Deposite raceted for god year of rajeme periods) in Local Durrency and vowaling

at beme which will be quoted su application. tivng Kong, 14th No-onetaz, 1922.

INDIA, AUSTRALIA & CHINA.

Incorporated by Royal Charter, 1883.

HEAD OFFICE: LONDON. Fald-up Capital

Resorve Fund

,£3,000,000

..£4,000,000

..£3,000,000

Reserve Liability of Proprie

Agencles and Branches:

tora

ALOR STAR

(Malay Kitabre}

AURITAAN

BANOROX

BATAVIA BOMBAY CALCUTTA

CANTON

DAWNPURE

OKAU

COLOMBO DAINEN (Baluy

Bouth Leburts)

DELHI

НАЙГНОКО

...(8. Manchuria)

HAMBURG

HANKOW

HARBIN

TÙNG XÔNG

(DGILO

ПРОН

КАПАСНИ

ILANG

KODE

KUALA KANGSAR

Forsk .B.)

KUALA LUMPUR

KUCHING

MADRAS

MANILA

MEDAN

NEW YORK

PEKINO

PENANO

PESHAWAR

HANOOON HAKLON

BEMARANG

REREMBAN

BANGHAI

SINGAPORE

BOUTABAT

TAIPING

(P.M.N.)

ΤΑΤΟΣ

TIENTBIN TOKYO

TONGKAH (Bhuist) TSINGTAO YOKOLIANA ZAMBOANDA

(Philippina Islands)

Foreign Exchange and General Banking business transacted.

Current Accounts opened and Fix ed Deposits received for 1 year or shorter periods at rates which will be quoted on application.

A. H. FERGUSON,

Hong Kong, 8th January, 1929.”

Manager.

THE HO HONG BANK, LTD. (Extablished 1917)

Authorised Basted

Pald-up

CAPITAL.

THE CHINA MAIL,

COMMERCE

MR. INSTONE BREWER |

CHARGED

AUDITOR AND THE BALANCE SHEET

BARRISTER AND THE LAW

AND

FINANCE..

In your opinion it should not I did ralas be included?—Yes. objections on this score, and Mr. Brower was offended.

With regard to mortgages and long-term loans as displayed in the combined balance sheet, wit- ness admitted he never saw any deeds proving such mortgage items, except that he found the figures to be correct after having compared them with those on the subsidiary balance sheets.

Relied on Assurances Why did you put your name to a balanco sheet bearing mort-

When Mr. A. W. G. H. Grantham resumed hearing yesterday after noon of the case against Mr. Noel Instone Brewer, barrister-at-law, who is charged with offences under the Perjury and Larceny Ordinances, arising out of the fin-gages when you were not shown ancial position of the Instane Banking Corporation, of which he was President, an important wit- ness was called by the Crown in the person of Mr. Ll Tung, the Chinese auditor of the Bank.

any ---I relied on those figures in the other balance sheets and on Mr. Brewer's assurances that these figures were correct and was satisfied with the explana- tions he gave me. He said some of the mortgages were in Shakki and as for the others, he said they could be taken as correct. - When he told me that the total figure given of these mortgagea was correct I did not pursue the matter further.

Was

Li Tung, auditor to the Instone Banking Corporation, said he had acted in that capacity from the date of establishment of the Bank to April, 1928. The balance sheet dated April, 1928, was audited by him in the premises of the Bank. $20,000,000 The auditing occupied ten days, 8,000,000 starting each day at 5 p.m. Mr. 4,000,000 | Brewer was the only person pre- sent during the auditing. Shareholders

4,000,000 Surplus

2,219,000 Witness said that three balance || HEAD OFFICES:—-SINGAPORE sheets were produced for the pur- Branches, Agcacies and Correspon- poses of auditing. The first relat-ers. dents in the principal cities of theed to the Hong Kong Branch, the world.

Every description of Banking and second to the Head Office, and the the following

third, which was more in the he nature of a return, related to the Shekki Branch. These three docu- ments were typewritten.

HONG KONG SAVINGS BANK, Reserve

The Desics of the stove Denk la coodies.

# by the HONG KONG AND BHANGHAI

BANKING LUHYDRATION, Hules may be shieinad on application.

FOR THE HONG KONG SHANGHAI BANKING CORPORATION,

A. BYNES,

Chief Manager.

Uang Kong, 18th Bapiomber, 1927.

NEDERLANDSCHE HANDEL - MAATSCHAPPIJ, N.V.

(NETHERLANDS TRADING SOCIETY)

BANKERS.

Established 1924.

tiong Kong Ofɔe:~~~> Quena's Food Central Astharied Capital Ouilders 150,000,000- (41,600,000.) Bald-Up Capital... Quklésre 80,000,000

(28,868,857,) Fued ........... Ouilders 40,000,000

Load Of AMSTERDAM'), Eastern Hsed Oños:-DATAVIA. GRANULES 1-Bandjermania Bandong') Bombay,

(£8,300,250.)

Liabilities

Exchange business transacted.

TAN ENG HOOI,

Manager. Hong Kong, 15th May, 1929.

THE BANK OF TAIWAN, LTD. (TAIWAN GINKO)

He had already started auditing before being given, on a subse- quent date, the Combined Balance Sheet purporting to incorporate HEAD OFFICE:-Taipeh, Formosa.the other three subsidiary Balance

Incorporated by Special Imperial

Charter, 1899,

Sheets. The Shekk! books were not made available to witnesa, and

Central Bank in Formoss.

he confined himself to looking Bank-Noles issuad Average amount...Yen, 45,000,000 BRANCHEM AND AGENCIES:

over the Hong Kong books, and JAPAN-Tokyo, Yokotama, Kobe, Osaka.

received some assistance from | PODMORA ===Clean, Kagi, Atranko,

Hakong, Hanto, Bhinshiku, Talahu, Tai, Mr. Rodriguez, accountant of the TARAS, TAHU, TORS. Hall, Tao,

Vacker, Amey, Foxhow, Bank, on one sole occasion. Вивом, Сали

that he merely -Li Tung said OTHERS-Hong Kong Hingajura,

Demand Pataria. Lembas, Calout, audited and checked the accounts, London, New York, Dairen,

LONDON BANKERS:

and did not make a balance sheet himself. The Combined Balance Sheet was given to him by Mr. Brewer himself, and. he signed it on June 6.

Болтовую..

Calanita, Chariben, Bjarüber, Djak iskaria") The Hague'), Juldah, Kobe, Moto-Radja, Makassar, Medan, Pulang Felebang, Pekalongan,

Pahang. The London County Westminster and Farr's Bank Poaliensk, Hangoon, Botterdam) Gamereng"),

The Bank has Correspondents in all the prin Shaoghal, Bibolg (Bumatra Blagapor

Bowesbain, sipal Commersial Deales throughout the world.

X. NAQUBA.

Sosakaria (Bela), Tigel, Tilaslap and Watercadan.")

_) Those show kaya main deposit boxes te lei. London: Denkern-National Provincial Bank Ltd.

Correspondante ali over the would

Banking brannen al utary description transacted.

P. M. LORNO,

fing Kong, Kila May, 1929.

Manager.

BANQUE DE L'INDO - CHINE.

HEAD OFFICE:

$6, Boulevard Anussman, Paris,

Subscribed Capital Frs. 72,000,000.00 Paid-Up Capital ....Frs. 68,400,000.00 Reserve Funds ..FT.102,000,000.00 BRANCHES:

Hong Kong Quinhon

Saigon

Bangkok Battambang Hus Cantho

Canton Djibouti

biengize Shanghai Nam Dinh

Napmea

Fort-Bayard Papaete

Halphong

Peking

Singapore Thankses Tientsin

Hankow Pnom Penh Vinh

Banci

Pondicherry Yunnanfu BANKERS:

IN FRANCE: Comptoir National

BUNG KONG BRAHUM;

* 3, Den, Võnux tíoad Central. Hong Kong, 19th January, 1927.

Meanger

Attested as Correct

Mr. Fitzroy then took the wit. ness item by item over the bal- THE BANK OF CANTON, LTD. ance sheet he had thus signed and

Established 1912.

t Head Hong Kong.

Astharland Capital (H.H. Curtvacy)...@11,000,000 Fald Up Capiat a page

Best

Fund -

BRANCHES :-

Canton, Shanghai, Bankow,

8,864,900 moojook

BWALOW

Dangkok, New York and San Franction,

LONDON BANKERS:—

The Lloyd's Bank Limited. Önerespondanám íù all principal cities of the

World

Vorig change and banking boulomm of every cription "tracts),

Rate Derpali Bozan (ritious, sl200) at a zeariz rania o from 5 to $40.

LOOK POONG Shan,

Chlef Manager. Hong Kong, 19th February, 1927.

THE BANK OF CHINA. 行銀國屮

18

$10,000,000, the

altested as correct.

Counsel pointed out that there- on they had the authorised capital subscribed capital $1,480,000, the allotted capital $1,183,000; and also eur- dry debtors, loans and mortgages, He asked witness how he could

reconcile these figures with the great disparities elsewhere.

Li Tung: Mr. Brewer called mo

ed the Combined Balance Sheet I had noticed these differences.

Mr. Brewer's Explanations Witness was then asked to com- pare the Combined Balance Sheet with one of the subsidiary ones, Mr. Fitzroy pointing out certain dia-

Witness next questloped with regard to the item col- lateral securities displayed on the combined balance sheet. He said Mr. Brawer told him that the item Included money lent to sharehold-

Mr. Fitzroy then put in document which said Was signed էջ 3 Mr. Chan Kwok-ming of No. 64, Bonham Strand:

"I hereby make an application to the Instone Banking Corporation for personal loan of $0,000, which sum I propose to use in payment of the balance outstanding on 100 Or- dinary Shares 'applied for for allot. ted to) me in my name, on which the sum of $10 per share has been previously paid by me in cash. I agree that this loan, if accepted, shall be a lien on the said shares and that in the ovent of my essay- ing to transfer or hypothecate the wald shares, it shall be forthwith re- payable without demand."

In the course of further evi- dence, Li Tung sald he had been shown a printed form similar to this application, and Instantly pointed out to Mr. Brewer that that could be no security. Mr. Brewer's reply to this was that when the Bank loaned money to

shareholders on their shares, the Bank would have a first claim on those shareholders, and that sign ed bit of paper was the security. to pass that as Collateral Secur- Mr. Fitzroy: You were satisfied ities?-Witness: I was not satis- fled and made objections, but he said he was a barrister, and knew more about the law than I did, and could say that it was per- fectly legal.

Share and Other Investments Next witness was questioned

WEDNESDAY, DECEMBER 11, 1929.

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At the end of that time you HONG KONG HEIGHTS were thoroughly acquainted with the books of the Instone Banking Corporation?--I had Been the For the information of visitors with the balance sheet, books which had anything to do the following list of some of the

Did you say you spent the whole time

on the books?—No, in auditing the balance sheet.

Satisfied after Explanations You had ample time on the days on which you worked to satisfy yourself on the point that the balance sheet was correct?-I was over to sign it, but before I sign with regard to the Items stocks, satified after Mr. Brewer had given

shares and other securities as those explanations. displayed on the combined bal-

That is not my question. You ance sheet. He said he was had ample time doring those ten shown a share scrip for $146,000 days to satisfy yourself that the by Mr. Brewer, who in explana-balance sheet

was correct?—Yes. tion, sald It was a share scrip of

consequence of that you the Instone Trading Company. signed on the balance sheet the "I enquired what this trading following certificate ?

(Mr. David- company was, and he said it was son proceeded to read the usual an imports and exports company certificate attached by auditors to owning shares worth that figure balance sheets, and asked witness next asked where that Company if he appreciated what the duties was located, and he said it was of an auditor ware.) above the Bank. I was shown a Witncas replied in the affrina- scrip of shares which valued at tive, and said, in reply to another $1,000 each would amount to the

question that what was in the figure shown.

certificate was true.

You

d'Escompte de Paris; Credit Lyonnaisi | (8pecially Authorised by Presidentit crepancies in the capital figures.

Banque de Paris et des Pays-Bas Mandate of the Republic of China

Witness:-I found these differ- Credit Industriel et Commercial; So-

ences myself and pointed them clete Generale.

on the 22nd of November, 1917.)

out to Mr. Brewer, who told me ....$60,000,000.00 that if the uncalled capital was 18,278,400.00 posted over to the assets side in

9,429,425.24

the balance sheet, it would look better. Mr. Brower also inform-

IN LONDON: The National Pro-Authorised Capital vincial & Union Bank of England, Paid-up Capital Lid Comptoir National d'Escompte Reserve Fund

de Paris: Credit Lyonnais.

IN NEW YORK; J. 9. Morgan & Co.; French American Banking Cor- poration; Guaranty Trust Co. of Naw York

Intereat allowed on Current Ac-

HEAD OFFICE: PEKING.

HONG KONG BRANCH:

4, Queen's Road Central. Branches and Sub-branches all over

ed me that before becoming a barrister, he was a very good ac- countant. Mr. Brewer further said that he had seen. other banks

Then Mr. Fitzroy interrogated

counts and Fixed Danosite according Chian and Correspondents in Europe, and big emporiums making their witness in regard to the item cus-

Every description of Banking and America and other parts of the world, balance sheets in that way.

Exchange Business transacted.

A. LECOT,

to arrangements.

Safe Deposit Boxes to lot.

Manager.

Hong Kong, 1st May, 1929.

LIMITED.

London Bankers: The

1

National asked him to explain more fully Provincial and Union Bank of Eng- why he should class uncalled land, Ltd.

The Guaranty Trust Company of

capital" as an asset and posted it New York.

as such in the balance sheet. His New York Bankers:-The Irving explanation was that he had ask÷ National Bank.

éd certain shareholders to sign THE YOKOHAMA SPECIE BANK, New York.

The Equitable Trust Company of certain application forms, and Interest allowed on Current Ac- having signed it, they would be counts and Fixed Deposits. Terms on held responsible for the backing application

Established 1880. Capital (fully paid-up} Yen 100,000,000 Reserve Fund. Yen 108,500,000

Alexandria

..

Head One:--YOXOBAMA Branchen and Agenclos atr

Никога Newchwang New York Omka

Batavia

Bomber Buenos Apres (Temporarily

Calcutta

Changchun - Daizm, (Dairy)

Peking

Rangoon Rio de Janeiro

Saigon San Francisco

Semarang Shanghal Shimonozaki Sings

Fengden (Külden) Seattle

Hankow

Machin

Mlongong

KAI Yuen

London Los^Angules

...

tomers' deposits, shown on the combined balance sheet 15 amounting to $466,000, and he re- plied he was satisfied that this figure corresponded with that in

In

·

remember Mr. Brewer's public examination? You had various interviews with the Of- ficial Receiver before that public axamination?--Yos

On those occasions were you a ledger and with those display examined by the Oficial Receiver ed on the three subsidiary balance on many of the points on which sheets. He saw nothing peculiar you are questioned this afternoon?

Yes. In this Item.

Printed Balance Sheet

Wore your answers taken down Here Mr. Fitzroy produced a

in writing by the Official Receiv up of this uncalled capital..

erl-It appears to Every description of Banking Busi-

me that the flod Witness said he had also ask-printed balance sheet BE ness transacted.

Loans granted on approved secured why Mr. Brewer should desire with the Registrar of Companies, answers were taken down in writ

Ing. to swell these capital figures, and Special facilities for Home Ex- he replied that such shareholders could be called upon at any time to make up for such capital.

change.

SHOU J. CHEN,

THE BANK OF EAST W

Manager.

LTD. THE MERCANTILE BANK OF

INDIA, LTD.

HEAD OFFICE: HONG KONG. - 10, Des Voduk Road Central,

Hong Kong

Authorised Capital:

Paid-Up Capital

Reserve, ak

$10,000,000

5,000,000

1,500,000

··BRANCHES AND AGENCIES:

"HRAN. OLETOR;

Witness was asked if he had seen it before, and replied, that

aa

Were those answers the name as he had seen such a balance sheet, you have given this afternoon?-- I cannot remember. It is possi- after the one which he signed. Were those arrangements

ble the questions were different- ly put shown in the green balance sheet

Shown the typewritten general suggested by you or were they balance sheet which he passed as the work of someone else? They auditor, witness was questioned were not mine. All I did was with regard to the alterations the auditing

Who was it that presented it to who made those alterations.

thereon. He denied that it was you 7-Mr. Brewer. Dis die 1,800,000

Mr. Davidson: The way in Cross-examined by Mr. Davíð, k son: I take H, Mr. Li Tung, that which the capital was got up had you are an experienced auditor? been completely altered?--Yes,

You say Mr. Brower made that alteration? I do.

15. Gracechurch Birjet, Londen, R. OM,

£8,000,000.

Authorized Capital:

Bubscribed Capital

Paid-up Capital:

2,050,000

Reserve Fund and Rost 1,612,047

Batavia 14 Melbourne San Francisco sob

Bombay Nagasaki. Seattle,

Calcutta New York Semarang Canton Oaska ...... Singapore |Haiphong Paris”| Bourabaya

Honolulu Peiping Bydney Kobe Penang Kowloon Rangeon London Balgon

Tientsin

The flank of England & Midland Dink,, Ltd. v.

BRANCHES Bar gitak

Kaw Tork Peng..

For ten days you sat in Mr. Bernhard Karachi Port Lou (lit) Brewer's room after five o'clock

Balatia Kandy (la, C

Catruliai

Ceilombola. Xeni

TheKinia Lipia (i

dall Kala Lumpur:44SİAD DON.

Jong Kong Kuantan Eskadet. Barabara. ::

Howrah-1 Hedruk ̧!

MEDALLIONG KONG BRANCHT.

Why did you sign it since it was

and audited the books I-Yen,his alteration? I was satisfied

Did Mr. Brewer assist you at any time--He did not, aselet me In anything in particular,-- When

Kvary_deveel plono Beating and Exchange 1 came to anything: I did not un”,

GlioquesTM Lest

derstand asked him.

Why was it necessary for you

told

o bo dorit la his

with the explanations he gave me.

The hearing was then adjourned until-to-morrow afternoon.

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