CO129-431 - Governor Sir May - 1916 [1-2] — Page 527

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misting the latter.

6.

The second main allegation is that injustics is

iną, caused to creditors, and the Chamittes of the Chamber make definite charges. One is that the liquidītors are refraining taking the natural steps to enable the local obligations of Germon fims to be discharged and are thereby assisting German

sde and influence. The other is that secured creditors are

sitting on their securities" to the prejudies of the unsecured

heditors.

ás regards the first charge the Government.

ar the moment at a loss to know what it is to which the Committee

Mor, especially as two ambers of the Committee are thousalvas

liquidators of the two firms in which it appeare probable that

ko losses of the creditors will be the greatest. The Government

are antiraly satisfied that these two liquidators are carrying

their duties to the best of their ability and any sugges tiena

yo... them as to how their liquidations could be neceleruted will be

slcomed and most carefully considered. It is no part of the duty

þf the liquidators to assist German trade and influmos mad the

overnment do not believe thɛt any of the liquidators have aver

wood such an ideal before their minde.

It is impossible to deal with the second charge

[without referring to a particular secured creditor, as, so far an

Įthe Government are aware, the romarks of the Committee apply chief- sly, though not solely, to the sation of the Hongkong and Shanghai

inking Corporation. That bank has a charge on considerable assets

tin case of several of the firms which are being wound and

pse of the liquidators are of the opinion that the bank should be proel to state its squet alaim in esah asas. In other words, they

my that the bank should either realise its security and prove for

balange of its alain, or abandon its security and prove for the sole amount of its claim, or value its security and prove for the alunos. There are tw objections to a policy of forcing the bank

to this position, One is that, as in some cases the charge

Extenda