CO129-485 - Governor Sir Stubbs - 1924 [8-12] — Page 178

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seems to be much troubled by the counterfeiting of labels and constant reference is found to this in documents, even the Tin Shing ascribes part of their non success to using other people's labels on opium manufactured by them.

8. The importance of this last seizure of documents taken in conjunction with those seized at 108 Des Voeux Road Central is thet it enables us to get a glimpse of the method of organisation of two firms of opium boilers ortablished at Kwong Chow Wan, the capital involved and the

profit made. They also prove where the leakage of Indian opium into China apart from Macao occurs, also the very strong demand there is for Indian even at hugh prices at

Shanghai.

9. The method of trading of the firm seems to have

been to employ agents to attend to the retail sales, it is

improbable that any opium other than samples was ever kept at the premises, an agent would come, pay a deposit and

obtain a written order, in this case presumably for so many catties or piculs of "Sugar", this he would take to a

certain place at a certain time when the opium would be ready. The agents settled the balance when they could. The firm also made a certain amount of profit by doing an excha nge business, as they owed so much money for opium to Kwong Chow Wan they constantly had bills drew on them which they paid to the persons indicated, they thus had no reason to remit any money at all to Kwong Chow Wen. A firm at Yam Chow or Lim Chow owing money in Hongkong for toreign goods for instance, would pay the amount to the firm in Kwong Cha Wan who would send an order to their Hongkong branch to honour the draft when presented by such and such a firm, The profit to be made by this exchange business is by no

Beens small.

21st September, 1924.

(8d.) J. D. Lloyd, Superintendent of Imports and Exports.