139
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lotter.
THE LONDON AND CHINA TELEGRAPH.
[AUG. 13, 1867.
be cheapest of all; but this recommendation by no means extends to its subsequent maintenance, for in Russia the land lines constantly require repair in consequence of ice collect- ing on the wires and breaking them down. This liability to in- terreption has other than mere pecuniary disadvantages. Our
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via Kiachta, which has lately proved so useful during the summer months, had been temporarily interrupted by a break- down of the Russian lines from this cause. And with the still unsettled "Eastern question" staring us in the face, it is im- possible to forget that a war with Russia would close this route at once. Still, there is no reason why all three should not be carried out. In a mercantile point of view all will be useful; Competition will ensure careful management and a moderate traffic; and political considerations render a choice of routes always valuable.
THE POSTAL SERVICE.
ALL apprehensions concerning the probability of our over- land mails falling into the hands of the French company have been set at rest by a distinct disavowal of the Duke of MONT- ROSE of any such intention on the part of Her MAJESTY'S Government. So far, so good; but the PoSTMASTER-GENERAL goes further than this, and takes upon himself to declare that no such ides ever has been entertained, an assertion which is strangely inconsistent with facts. In his statement to the House of Lords on the 9th instant the noble Duke said :-- that in following out the recommendations of the committee we intended A very curious idea has got into the public mind on the subject, namely, to give up the control of the postal communication with India, and throw it into the hands of foreign Governments. This is almost entirely a mistake. Such an idea never entered into my mind or into that of any other member of the Government; and the only ground for it could be that in giving notice for tenders we did not put into them that we would not contract with any foreign Government.
and answer on the same subject in the House of Commons on Now compare this with the following report of a question the 3rd of June last:---
IN a late issue we noticed three new plans for establishing a more satisfactory system of telegraphic communication with India and the East. These comprised, firstly, the Axcro-INDIAN Company, which proposes to construct an independent line by way of Susa, Modica, Malta, and Egypt; secondly, the INDIA, CHINA, AND COLONIAL Company, which prefers a complete chain of submarine cables, starting from Falmouth, via Gibraltar and Egypt; and thirdly, a plan for an entirely new route through Prussia and Russia. The details of the last-mentioned under- taking were at that tine incomplete, but a tolerably full accouut of the plan having recently been made public, we are now in better position to compare the respective merita of the rival schemes. The name of the last new company is not yet an nounced; we understand however, that a direction has beentures had been made to the French Post-office with a view to render the Mr. Childera asked the Secretary of the Treasury whether any over- established both in London and Berlin. It is proposed, in the French mail service to India and China more available for the purposes of first place, to lay a cable across the Chaunel, connecting the this country under the new system of postal communications, as recom- English and Prussian coasts, and to connect this with the mended by the committee of last session? Black Sea by a laud line through Prussia and Russia. Black Sea would bo erossed by a new submarine cable 280 The miles in length, from the Crimea to the Circassian shore, whence another land line would complete the connection with the exist-of any other member of the Government" the SECRETARY to ing Persian Gulf line to Kurrachee and Bombay.
Mr. Hunt replied that forms of tender had been sent out, and it was hoped that the Messageries Imperiales might be induced to make an offer foreign company to compete "never entered his mind, or that The POSTMASTER-GENERAL saya that the idea of allowing a
Each scheme of course has its special ruerits, nor must we French company, and he hopes they will be induced to make the TREASURY says that forms of tender have been sent to the expect to find either of thern entirely free from defects. The an offer." ANGLO-INDIAN line will probably be the first in operation, and against official stupidity, has written a letter to The Times, Mr. CRAWFORD, the champion of common sense being carried by a short and direct route, and worked through-pointing out how absurdly the two departments are at variance; out by an English staff, there seems no reason to doubt that the anticipations of the company-that they will be able to Really, my lords and gentlemen, you should endeavour to be a but comment on so glaring a discrepancy is almost needless. transmit messages between London and Bombay in six hours-little more consistent ! will be fulfilled. The arrangement by which a second route to Alexandria is secured is especially valuable as a provision against the oft-recurring interruptions to which cables in the Mediter- ranean are liable; and the advantageous contract made with the Telegraph Construction and Maintenance Company is a suffi- cient guarantee for permanent efficiency. we can find in the prospectus of this company is, strange to The only weak point say, contained in its very first line: The object of this company "is to establish, under one control andmanagement in London, a "direct and thoroughly effective line of telegraph via Egypt and "Aden, to India, with extensions hereafter to Singapore, China, "Japan, and Australia." Of the advantages likely to accrue from an undivided management in London there can be no doubt; but the control, we fear, at least of the Continental portion, would rapidly pass out of the hands of the London board of directors in the event of a general European war breaking out-and we see no indications of the immediate arrival of the Millennium. But we cannot have everything. This objection entirely disappears in the scheme of the INDIA, CHINA, AND COLONIAL Company, for, as we have already seen, its chief feature is the almost entire abolition of land lines, and the wires will nowhere touch foreign soil except in the transit across Egypt. Politically, therefore, this route would seem to possess decided advantages over any of its competitors; but submarine cables are expensive to lay down, and still more so to keep in repair, especially in the Mediterranean and the Red Sea.
As regards original cost of construction the over- bead line through Prussia and Russia would probably
THE FAILURE OF MESSRS. LYALL, STILL AND CO. Messrs. C. F. STILL and GEORGE MACLEAN, two of the partners OUR last issile contained a report of the examination of in the firm of Messrs. LYALL, STILL and Co., before the Court astonished to find that no opposition was offered to their passing of Bankruptcy at Hong Kong.
Our readers will have been through the court. We must confess that we were struck with amazement at the following statements made in court on the bankrupts' affairs which, according to the report of the official assignee, stand briefly as $635,935 on the wrong, and only $2,000 on the right side.
what should be expected from the position and reputation of the firm here The CHIEF JUSTICE said this was a most satisfactory statement, and was in Hong Kong. The accounts and statements appeared to have been drawn up with very great care and very much attention.
bert, Mendel, and Henderson, he did not intend to ask any questions, or Mr. WHYTE here observed that, as representing his three clients, Lie- to oppose the bankrupts' discharge.
Mr. POLLARD stated that so far as Messrs. Fussell and Co. were con-
cerned, for whom he appeared, he had no questions to ask and no oppo- possible interest in the bankruptcy. A gentleman of the bank's staff had sition to make. He appeared also for the Oriental Bank, who had a examined the books, and had found them so correct that no opposition
was offered.
thought nothing had entered the case which could be said to go beyond- His LORDSHIP, in doing so, remarked that, from what he had seen, he that the books told the whole tale, as that was the first merit in any bank- the common state of things present in any bankruptcy. It was satisfactory ruptcy, and both bankrupts were entitled to that credit in this case. They tain want of prudence which characterised ainiost every one who traded would leave the court without the slightest imputation, except that cer-
Aug. 13, 1867.] THE LONDON AND CHINA TELEGRAPH.
That
largely in China. There were, however, different interpretations of what insolvents. constituted a want of prudence in the legal meaning of the term. which in a place like London or Liverpool-[Mr. Pollard: Or Manchester (laughter).-would be nothing extraordinary, would in a small town be looked on as an excess of speculation quite incompatible with fair busi- ness. The bankrupts had breathed a China air and formed China habits; they had played for high risks and lost; and he thought that those who had supplied them with the means of such extravagant speculation had the least cause to complain.
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This act was certainly one of the grossest injustice to the bulk of the creditors. That Mr. MACLEAN knew that the firm was insolvent appears clear by a letter in the hands of the official assignee.
The letter is dated 27th December. and addressed to Mr. Lyall, and runs as follows:-- Attorney-General, and this great idea was that Kayser and Kaye should be "As I told you in my last, I had a long chat with Faunceforte, the kept quiet here, so as to give every chance at home, as so much depended left, by the two above-mentioned bankers, came upon that. Pollard, who was consulted two or three days after the mail matter over in a friendly way and see what could be arranged, to me to talk the so that these two banks might say they had made satisfactory eventually came to the conclusion that the best thing that could be done arrangements with Lyall, Still, and Co. would be to give these two banke a lien on such property as I could muster Paunccforte and Pollard
of other creditors, hereafter; and if things came to the worst, and if the up. The two lawyers both considered that Kayser and Kaye were first en titled, the one legally the other morally, to be satisfied, even at the expense
tors, as to all intents and purposes we were insolvent at the time, then Kayser and Kaye have no advantage, and would not retain their lien. Kayser is supposed to hold his as security for acceptance of the drafts by and Kaye for balance of account, in both cases hard cash having been Chalmers, Guthrie, and Co, I having been unable to give documents, paid, one in consideration of my promising to do something which after- wards I was unable to carry out."
This expression of opinion in Hong Kong on the failure of the firm is so diametrically opposed to that current in London and Manchester that we have considered it our duty to examine into the case, and we regret that the result is very unfavourable to the bankrupts. It has been correctly described as a very bad case," and how Judge SMALE could commit himself to such an expression of opinion-amounting really to panegyric on the conduct of the bankrupts-is a mystery. Surely his legal mind must have seen that there were most important irregalari-document which I have signed is proved to be illegal by the other credi- ties in the matter of the assignment of goods per Min, as that case had been beard before the court, and in summing up his Lordship decidedly did so in favour of MENDEL and LIEBERT, the vendors of the goods, and against the right of the bank rupts to make over the property to the banks as security for overdue obligations. Here is what his Lordship is reported to have said
Did the parties who took the bills of lading take them with knowledge, a case of this aort, but it is also customary for them to dis Now we know that it is customary with banks to "grab all" in or under circumstance in which reasonable men must have known that gorge without demur such portion as can be shown to be held there men were insolvent, and that they ought not to have parted with by the assignors in trust. goods at the time. First, as against Mr. Kaiser, this point presents itself. I repeat it because I think it important, that he resorted to a threat of a
It is idle to pretend that Messrs, KATE and KAYSER did not know that LYALL, STILL and kind which was not excusable eren if he then knew the firm was insolvent. I leave it to you as men of business to consider under the circumstances, and HENDERSON then afloat under certain special agreements as to Co. held the documents covering the goods of MENDEL, LEIBERT must the man using so unjustifiable a threat be taken not to have known the proceeds, although this is a point for the consciences of the that the firm was insolvent,
Really, one cannot help inferring, in the face of such ap-in attempting to defend their claim when the facts of the case bank managers and Mr. MACLEAN; but we condemn their conduct parent obfuscation, that his Lordship had himself very largely were known beyoud doubt. By the verdict of the jury they have a absorbed the China air and China habits" to which he attributed the bankrupts' disasters. The expressions on the 24th triumph over the victims who trusted to the honour of the June are so totally at variance with those of the 6th, that no
partners; but as announced in our last, it is the intention of small amount of criticism has resulted. It is unusual, and
Mesars, MENDEL and LIEBERT to appeal against the verdict to the Privy Council. The case of Messrs. HENDERSON has not yet been brought to trial, and this accounts for the counsel, Mr. WRITE, had no opposition to offer. This statement created most profound stating at the examination of Messrs. STILL and MACLEAN that he astonishment in this country, when placed in juxtaposition with the statements current as to the flagrant wrong inflicted on the examine the bankrupts he was informed by the Judge that if Manchester houses. It appears that ou Mr. WHTTE rising to he examined either of them "as to any of the debts due to "them by the bankrupts, he would consider it to be a proof of "those debts, and an election by him to proceed in bankruptcy "and so to waive any right to stop in transitu that was already claimed, or to avail ourselves of the benefit of any lien or "legal remedies."
this
53
rather too bad that any judge should go out of his way to animadvert on the discretion of the parties who had trusted the firm of LYALL, STILL, and Co, by stating that he thought "that those who had supplied thera with the means of such "extravagant speculation had the least cause to complain." Now this expression very emphatically partakes of the nature of adding insult to injury, and it is must inexplicable how his Lordship could commit such an indiscretion. At stage we will enlighten him as to the manner in which the "means were supplied by the Manchester bouses. Mr. GHORGE Lraul and Mr. C. F. STILL, the two senior partners, then, being resident in London-and, according to report, living in mansions at Hyde park in Oriental magnificence, and having good connexions, including Messrs. CHALMERS, GOTHRIN and Co., who acted as their financial agents--no difficulty was found in obtaining credits, and in the usual way negotiating with Manchester houses for the shipment of cotton and woollen goods. Messrs. LIEBERT, MENDEL, and HENDERSON informed them that for some years, owing to heavy losses by failures in India and China, and the altered condition of the trade, they had been in the habit of conducting such business on certain conditions-that they did not part with goods unconditionally, The nature of their terms will be best understood by the fol.tively complimented on the nice manner in which they kept lowing heading of an invoice:-
their books! It is not necessary for us to detail all we have been informed on this subject; but if one tithe of the acts imputed to these gentlemen be true, wo blush for the honour of the China trade.
Invoice of 170 bales forwarded to Messrs. Killick, Martin, and Co., London, for shipment per Ariel, aud consigned to Messrs. Lyall, Still, and Co., Hong Kong, for realisation, proceeds to be remitted specially to meet Messrs. Geo. Lyall and C. F. Still's acceptances against the ship-
ment.
The terms were assented to by Messrs. LYALL and STILL, and subsequently by the firm at Hong Kong conducted by Mr. MACLEAN. This gentleman wrote to one of the Manchester houses under date the 14th December, 1866, as follows :-
We have the pleasure to acknowledge your favour of 24th Oct., in which you refer especially to the arrangement entered into between your good selves and Mesars. George Lyall and C. F. Still for the remittance from this side of cost of four shipments of goods purchased on our account. These arrangements we have now to say will be carefully attended to by UB, and remittances will be made in the form appended to your letter. Copies of our letters advising remittances to our friends will be sent to you regularly."
Notwithstanding this letter it appears that Mr. MACLEAN handed over to certain banks shipping documents of the goods that were afloat on that very day, and even previous to that date-viz., on the 30th Nov.; and on the 22nd Dec. they made an assignment to the banks of all, or nearly all, the property they possessed, although they were to all intents and purposes
Mr. WHITE was thus prevented from bringing to light the en- the final crash. This is to be regrette, as the moral character of tire modus operandi by which the firm had been kept adont up to China firms has suffered an immense blow, and it is only just that such acts should be made au example of, and not than a burlesque that the bankrupts should be told that they glossed over in the manner they have been. It is nothing more leave the Court without the slightest imputation, and be posi
We understand that private telegrams have been received from Hong Kong, announcing that the affairs of Messra. DENT Insurance Society," hitherto managed exclusively by Messrs. and Co. have been thrown into bankruptcy. The "Union DENT aud Co., is in future to be placed ou an independent basis. It is reported that at a recent meeting of shareholders the accounts submitted showed a large deficit; this, however, since that the funds of the "Union" were intact, and its is in direct contradiction to a statement made some months affairs in a satisfactory condition. We trust the latter version nected with the failure of this firm we shall have more to say may prove the correct one, but on this and other matters con- in our next issue.
dered the published calculations of cost per lb. laid down in Tar high prices ruling of late for China raw silk have ren- London of little practical utility. The new tables issued by
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