CO129-436 - Acting Governor Claud Sever & Governor Sir May & Public Offices - 1916 [11-12] — Page 278

Jabatan

275

are sufficient funds to pay the rent to the lessors, and the

liquidators will collect the rent from the various sub-tenants. In these three cases the lessors are not prepared to take over the sub-leases because the total rent in each case is less than the

rent of the head lease.

In some of the liquidations there are contin-

-gent claims which it will probably be impossible to ascertain definitely until the close of the war. For instance, in one case the Hongkong and Shanghai Banking Corporation have a contingent claim of about $740,000 in respect of bilis purchased on Europe

from branches of the firm in China. Against this claim they then

have securities to the value of about $270,000. The assets of this

firm ere quite sufficient to pay all the liabilities of the local

branch, and those liabilities have been preferred to claims

against other branches.

6.

Then the bill which was enclosed in Sir F. H.

May's Despatch of the 2nd. June, 1916, has been passed, it is

proposed to require the two banks mentioned above to realise the

shares which they hold as security, the intention being that the

proceeds of these securities shall be held by the banks against

the contingent claims in question. This action will be taken under

section 11 of the bill.

7.

The bill referred to above is being held back

pending instructions from you as to the conditions of sale to be

inserted in the case of the sale of leasehold property.

8.

The auditing of the accounts of the liquida-

-tion is now being carried out and I propose in due course to

send you copies of the final statement of accounts in each case,

certified by the auditora.

9.

It is proposed shortly to commence Prize Court proceedings in the case of 6 German launches, and also with regard to certain cargo which was landed here from Germm ships

گا

for

t