CO129-438 - Public Offices - 1916 — Page 87

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HONGKONG LEGISLATIVE COUNCIL

re-

The "Objects and Reasons" state:

THE COLONIAL SECRETARY plied: The registration of 133 trade marks belonging to enemy firms has

The object of this Bill is to deal with ca. been renewed since the outbreak of tain points which have arisen in the course of war. These trade marks belong to the liquidations and with others which may the following firns The Badische arise hereafter.

Anilin & Soda Fabrik: Siemssen &

Co.: Carl Bodiker & Co.: Meyerink Clausa 1 in formal.

& Co. and W. & C. Dunlop Arnold. Clause 2 has the effect of expressly Karberg A Co. Melchers & Co.;cluding arbitrations among the proceeding and Ferd. Bornemann. This Government which may not he begun without the per does not propose to issue instructions on mission of the Governor where the other the lines suggested by the honourable party is an alien enemy or a liquidator. member. As far as is known a policy Clause 3 makes the discretion of the Court of cancellation of trade marks has not to stay act ons brought against liquidators been adopted in any British Possession somewhat wider than at present, or in Germany, and it would hardly he opportune to initiate such a measure in this Colony where the value of a trade mark depends largely upon its user in China.

Supplementary Vote

THE COLONIAL SECRETARY moved the first reading of a Bill intituled: -- An Ordinance to authorize the ap- propriation of a supplementary sum of three millions nine hundred and forty- seven thousand and twenty-seven dollars and forty-one cents, to defray the charges of the year 1915," The amount is made up as follow:-

Miscellaneous Services ... Kowloon-Canton Railway Charge on Account of Public

Debt

Pensions

Charitable Services

Total,

812.731.78 3,036,199.53

65,151.86 31,019 40 11,804.81

$3 947,027.41

In doing so he said I propose to make some remarks on the appropriation ac count at the second reading of the Bill. In the meantime, I would refer hon. members to the report on the Finances for the year 1915, which I have just laid on the table, where, in paragraph 4. they will find a lucid explanation of the large supplementary expenditure required this

year.

THE COLONIAL TREASURER second- ed, and the Bill was read a first time.

Alien Enemies (Winding Up)

Ordinance

THE ATTORNEY GENERAL moved the first reading of a Bill intituled::

An Ordinance to amend further the Alien Enemies (Winding up) Ordinance, 1914."

Clause 4, read with clause 2. gives the Court power to stay an arbitration to which an alien enemy is a party, and it widens the discretion of the Court to stay proceedings generally brought against alien enemies,

With regard to the two clauses last re ferred to, it must be pointed out that easy may conceivably arise in which justice could not be done during the war owing to the evidence or for some similar reason, and it seems desirable that the decision of any such point should rest with a judicial tri

bunal and not with the executive It is possible that the Court already has inherent jurisdiction in the matter.

Clause 5 is declaratory and has been draft- ed with reference to cases which have actually occurred

Clause is intended to allay any pass ble doubts as to the powers of the liquidators to pass the legal estate,

Clause 7 expressly provides that'a liquida tor's powers pass to his successors in office.

Clause 8 provides that liquidators shall be at liberty to distribute the assets in the first instance on the footing that no interest accrues on any debt after the commencement of the winding up. This provision has beet borrowed from the law relating to bank. ruptcy, The clause does not take away the right of the creditor to interest, if his eht earries interest, and any surplus assets a be applied in payment of such interest. The rights of secured creditors are saved.

Clause 9 provides that unsecured deba payable to non-enemy creditors shall tak priority over unsecured debts payable t creditors who are enemies. This clause is based on sub-section (3) of section 1 of the Trading with the Enemy Amendment Act,'

1916.

Clans 10 introduces a power of disclamer, modelled on the power of disclaimer in bankruptcy. Any person injured by the

HONGKONG LEGISLATIVE COUNCIL

disclaimer will be treated as a creditor of u allen enemy to the extent of such injury, and aight to obtain the decision of the Court d the amount of damage suffered is recogniukų.

Clause provides machinery for compel Jing secured creditors to realise their securi

On such realisation the secured credi. for is to retain the amount to which he is entitled under the terms of the security and is to pay the balance to the liquidator. In casa of dispute to the amount to which the secured crediton is entitled the latter has right to a decision of the Court on the print. It is, of course possible that in some cases, owing to contingent liabilities, it will not be psible at present to define exactly the amount to which the secured creditor is entitled, and in such cases it may be neces Bary that the total proceeds should continue to be held by the secured creditor, if the total liability, ascertained and contingent. exceeds the amount of the proceeds

Clause 12 provides for the enforcement of order made by the Court on applications for directions.

Clause 13 provides that the validity of acts done by liquidators is not to be question- ed on the ground that at the time when the Act was done the person whose affairs are being wound up was not an alien enemy, or added, or, in the case of a corporate A somewhat body, had ceased to exist. similar provision appears in section 9 f the Trad.ng with the Enemy Amendment Act, 1916.

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THE COLONIAL SECRETARY second- Pd, and the Bill was read a first time.

Enemy Trading

THE ATTORNEY GENERAL moved the first reading of a Bill intituled:-- "An Ordinance to amend further the Trading with the Enemy Ordinance,

state :-

1914."

TheObjects and Reasons

The object of this Bill is to introduce the provisions of the Trading with the Enemy Amendment Act, 1916, 5 and 6 Geo. 5, 105, with the exception of certain provisions which appear to be unneccesary here.

Clauses 1, 2, 3, 6 and 12 are formal or deal with minor details.

Clanse 4 gives the Governor power to can- cel contracts with enemy subjects which are injurious to the public interest.

Clause 6, 8 and 9 give the Governor power to vest in the Custodian any property be longing either to an enemy or to an enemy subject, and they enable the Governor to confer on the Custodian such powers of deal. ing with such property as he may think fit. Clause 7 provides that the various restric tions on dealing with enemy property shall continue after the conclusion of the war until they are removed by Order of the Governor-in-Conncil.

Clause 10 imposes certain restrictions on the exercise by enemy subjects of rights in respect of limited companies.

Cause 11 gives power to wind up any com. pany registered in the Colony which has traded with the enemy through some branch or agent out-ide the Calony.

Clause 14 provides that no legal proceed. ing of any kind shall be brought against any liquidator or public officer, except with

Clause 13 is intended to make it quite the permission of the Govern, in respect clear that the Custodian of enemy property, of any act or omission connected with any like every other person in the Colony, re winding up under the Alien Enemies (Wind-quires the permission of the Governor before ing up) Ordinaners.

wind up, firms of enemy nationality or enemy associations. This is un- necessary here on account of the Alien Enemies (Winding up) Ordi-

Chase 13 provides for the continuance of he can make any payment to an enemy

subject. the Governor's and the liquidator's powers

The following are the sections of the Act for such period after the conclusion of the war as may seem proper to the Governor-in which have not been adopted: Council. The object of the clanse is to pro. (a.)—Section 1 gives power to restrict, or vide an interval during which the whole position, both here and in other parts of the Empire and in enemy countries, may be con- aidered hefore the liquidators' control of the estates comes to an end, and it may also be that on the conclusion of the war various questions as to the liabilities of firms which are being wound up will still be unsettled

Clause 16 repeals a section which will be rendered unnecessary by clause 13 of this Bill.

nances.

(b.)-Section 5 requires enemy subjects within the United Kingdom to re- port to the Custodian all shares and all property of the alue of £50 or upwards. This is also obviously un- necessary here.

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