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Supreme Court, referred to in my despatch to yourself of 16th March last, have terminated by a judgment of the Court in favour of the Plaintiff British shareholders in the Company, and the Company is now in course of voluntary liquidation, whereby the interests of the British shareholders will be protected and the interests of the Japanese shareholders given their due weight, and no more.
Fortunately the 'China' Companies affected by the new Order-in-Council (with the exception of a few companies as to which there were reasons for allowing a reasonable delay to comply therewith) had already taken steps to transfer their management into British hands, or liquidate, before the idea that there might be an Amending Order providing for licences allowing a con- tinuance of non-British control got abroad; and I have heard of no case of real hardship or damage to legitimate interests being done thereby. Had there been a prospect of evading the new Order- in-Council, many companies then under non-British control would, I am sure, have made out apparently good cases for exemption. The Chins Import and Export Lumber Co.,Ltd. would have said, with much truth, that their then General Manager, Mr. C. D. Seitz, as one of few men who knew the lumber trade of the Pacific coast of America, whence the Company get their lumber, absolutely indispensable; and that if he ceased to be Manager the business of the Company and the interests of its British share- holders would seriously suffer. The management of this Company, and that of many others, has, however, been duly transferred to Messra, Arnhold Brothers & Co.,Ltd.
was
The Shanghai Life Insurance Company Limited, the Com- pany which for British prestige, it is most essential to have removed from the British register, would, if exemption were possi- ble, have pleaded, truly enough, that if it were known that official steps were being taken to have it wound up as not under British control, a panic would have ensued amongst its Chinese policy holders. This is in fact the plea upon which no proceedings
have
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