CO129-333 - Governor Nathan - 1906 [1-4] — Page 244

COPY.

NO. 62.

Sir,

241

Coal mortgaged to National Bank of China seized by viceroy.

M. M. Consulate-General,

Canton, 9th. December, 1905.

:

I beg to acknowledge receipt of your tele-

-graphic instructions of the 23rd. November, regarding certain

coal seized by the viceroy, mortgaged by Fung Hua Chun to the

National Bank of China.

Not being in a position to obtain locally

the information desired by you, both rung Hua Chun and the Nationai

bank being in Hongkong, I placed myself in communication with the

Government of the Colony and now beg to forward copy of a Despatch

with five enclosures received from the Governor, furnishing full

particulars of the situation.

Shortly stated, the facts are as follows. The

Coal in question was mortgaged to the bank by Hung Hua Chun on the

28th. January, 1905, but it was not until September, some nine

months later, that the Viceroy brought his charges against Chou

Tung Shang. The viceroy's contention therefore that rung Hua Chun

and Chou Tung Shang were acting in collusion in mortesgl02 the

coal so as to prevent its confiscation by the Chinese Government,

must fall to the ground.

The viceroy further contends that the coal is

not the bona fide property of Hung bua Chun, but of Chou Tune Shang.

Even admitting, for the sake of argument, that this were so, the

coal was nevertheless mortgaged at a time when there was no case

or claim whatever against Chou Tung Shang by the Viceroy. The

Eank, therefore, would still be justified in claiming the coal as

their property under the mortgage. They would rightly argue that

it