CO129-432 - Governor Sir May - 1916 [3-5] — Page 521

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In connection with this question I would refer

you to my telegram of the 1st. of July and to my Despatch No. 390 of the 2nd, December last; and I would take this opportunity of informing you that during the last 6 months the steamers of this Line call regularly at Hongkong and no longer occasionally avoid

the Port. I have reported to you from time to time the transit cargo they carry from and to doubtful Firms.

3.

as follows:-

With regard to the 2nd. allegation the facts are

The Phranang Steamship Co., Ltd., which was registered on the 23rd, December, 1912, with a capital of $75,000, was formed in order to purchase the Steamship "Phranang from Mr. Bune. In this Company Mr. Bune held 35 shares. The Devawongse Steamship Co., Ltd., which was registered on the 20th. January,

1913, with a capital of 875,000, was formed to purchase the

Steamship "Devawongse" from Mr. Bune. In this Company Mr. Bune had

34 shares. These two ships were purchased from the Norddeutscher Lloyd by a Syndicate composed of Mr. Bune, Mr. Friesland of

Melchers and Company, and others. The 8.5. "Phranang" was deliver-

-ed by the Norddeutscher Lloyd a few days after the 23rd. December,

1912, and the S. 3. "Devawongse" was delivered by the Norddeutscher

Lloyd on the 29th. January, 1913. They originally belonged to the

Scottish Oriental Company and were purchased by the Norddeutscher

Lloyd from that Company some years ago. After Mr. Bune's intern-

-ment the two Companies went into liquidation and sold the ships

to a new Company, called the Cheong Yue Steamship Company, Limited,

which was registered on the 27th. September, 1915, with a capital

of $400,000. The objects of this new Company were of course, inter alia, to acquire the "Phranang" and "Devawongse". The signatories

to the memorandum were the Honourable Mr. Lau Chu Pak and Messra.

Chau Yue Teng and Chan Pek Chuen, and the first directors were the above three persons with the addition of Mr. Ip Sau Chi. This transaction was carried out by the shareholders and directors of the Phranang and Devawongse Companies, and the liquidator of Mr.

Bune's