CO129-447 - Governor Sir May - 1918 [1-3] — Page 351

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Conclosure 2.

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REG: MAY 18

ATTORNEY GENERAL'S CHAMBERS,

Hongkong.....Fshnuenx191 8,

REPORT ON ORDINANCE No......32.

1.

I have examined the accompanying Ordinance intituled

An Ordinance to provide for the making of deposite by certain persons

firms and companies carrying on fire or marine insurance business

and I am of opinion that the Ordinance is one which is not contrary to the

Governor's Instructions.

2. The Ordinance, which was introduced in consequence of reprezenta-

tions made by the Chamber of Commerce, is to prevent the growth of

mushroom companies formed to carry on fire or marine insurance business

but without any sound financial basis.

3. The accompanying list of insurance companies which have been

formed in Hongkong during the last three years speaks for itself,

especially when the notorious difficulty of collecting calls in the