1913-12-03 — Page 3

SUPREME COURT.

Tuesday, December 2nd.

IN SUMMARY JURISDICTION.

BEFORE HIE HONOUR MA H. E. J.

GOMPERTZ (PUIUNE JUDGE).

STOCKBROKING ACTION.

Patrick Cumming Potts claimed from Li Kin Tong, 43 Connaught Road) Central, $1,000, damages arising out of defendant's implied indemnity contained in a contract dated 9th of May, whereby the defendant instructed the plaintiff to purchase on his behalf 100 shares in the Maatschappij tot, Mijn Bosch-en Land- bouw exploiatafe in Langkat at Tls. 62 per share, for delivery on 13th July settlement in Shanghai, and on such contract the plaintiff to the knowledge

THE HONGKONG DAILY PRESS, WEDNESDAY, DECEMBER 3an, 1913

defendant would not play the game, that, bo would fail to complete the contract. He did not see the usefulness of giving notice, as it was very probable that defendant would not have acknow- ledged it. He had held him (plaintiff) to the contract throughout. He was always prepared to deliver the shares, and he felt bound to deliver them on settlement day.

Mr. Harris - You arc claiming indemnity for money paid; when was the money paid by you --On the 8th or 9th of August, when the bill became due.

Were you on that date still the agent for Lá Kin Tong?-Yes,

How many principals had you got in respect of the same 100 shares? Did you not act as broker for defendant's brother, Li Po Lang, for the purchase of 100 Langkats?--Yes.

acting for two

CANTON NOTES.

[FROM OUR OWN CORRESPONDENT.]

CANTON, December 1st. A FALSE ALARM.

FOOTBALL.

U.S. LEAGUE MONTHLY MEETING.

The usual monthly meeting of this League took place on Monday evening at the leadquarters, R.G.A. Theatre, Mr. F. W. Eager presiding over attendance of delegates.

*

good

ACTIONS AND REACTIONS. IN CHINA,

IL-EXTRATERRITORIALITY.

[CONTINUED.]

INTIMATIONS

XMAS GOODS

On Saturday night pickets of soldiers were posted at all the important points

Whatever difficulties have arisen in connection with the administration of the of the City and the various city-gates

criminal law. in China are, however, as were strongly guarded. All persons

A legacy from the preceding meeting. carrying with them articles having a suspicious appearance had their bodies referring to the exclusion of recognised Tothing compared with the possibilities searched. The scorchlights on board senior players from Division II, natches of trouble when the mercantile law is put to occupied some time, but finally four lists concerned. The average foreigner in China is not a criminal, and fortunately the gunboats in port were use every now and then, whilst the of players belonging to the R.G.A., R.E., numerous lights on the Kooa Yu Hill D.C.L.I., and H.M.S. Tamar respectively it is but rarely that a foreigner in China, illuminated the vicinity throug at the were approved as representing the hond becomes involved in the criminal law, night. There is no doubt that these fide first team men of these clubs. These whereas, on the other haud, foreign precautionary measures were taken in men were debarred from participating interests in China are almost entirely consequence of the evidence given at the in the junior matches, and all other commercial, and contracts with Chinese, court-martial by one of the ten military members of those clubs were permitted involving the mercantile law, are a men who were summarily shot a few days to play in the second division until they normal part of everyday business, yet there does not exist a code of Chinese ago, in the course of which it was stated had deburred theraselves by playing over

so that it is often impossible to ascertain for a rising to take place on the night of Thus perished a difficulty which at one

to what extent some part of a contract the 25th ultimo. But, although there had time promised to effectually mar the

are to be binding on a Chinese party to it. nahy boen

runiours in circulation, utility of the whole League

The Staff and Departments club was. This was exemplified some years ago when Article if any of our Customers are not satisfied, absolute quietude prevailed throughout the night.

reported by the referee for being the Bank of China, Japan, and the Straits as we know how excellent our Goods are. minutes late at the Valley. This (Limited) sued two of its Chinese share- I submit that you were not satisfied. with La Kin Tong as a principal, and

the meeting, ard so discussion was attached to their shares. The Shanghai the slightest doubt about our Goods. All wo particular club was not represented at holders in respect of the reserve liability Such an offer could not be raste if there was you wiped him out because he would not give a margin, and went over to Li Po Affairs Department in the Administra deferred for a month, but the delegates Tautai, before whom the case was tried,

provided that the S. and D. should decided that

Way nothing aak is your inspection..

representation thereat.

Then 3'00 were

and with the consent of the defendant principals for the same 100 shares-It was that preparations had been in progress three senior games as per League rules, mercantile law similar to the Penal Codes,

made himself personally liable to the sellers of such shares. Defendant had failed to perform such contract, whereby plaintiff had sufferod damage, ⠀⠀

Mr. Steavenson (of Messrs. Deacon, Looker, Deacon & Harston) appeared on' behalf of Mr. Potts, and Mr. Reader Harris (of Messrs. Wilkinson & Grist) was for the defendant,

|

fresh transaction,

substantial principals.ere were

no

So that when, as you say, you began tu lose confidence in Lá Kin. Tong, you sold them to Li Po Lang?—Yes.

Lung That is not right.

FOLEIGN AFFAIRS DEPARTMENT.

Secretary of the newly-created Foreign Mr. Lai Hi has been appointed Chief

tion Office, the office of the Commissioner

reported, be abolished in accordance with a Presidential mandatė.

there

In point of fact you were selling Li Po of Foreign Affairs having, as previously be ordered to arrange for capable in Chinese law compelling shareholders

Long your own shares?—No.

Mr. Potts added in reply to further questions that he was not trying to establish privity between the two brothers,

If he made an "improper" profit, a prolit over and above his brokerage, he would hand that over to his principal. It was. not his intention to buy at 32 taels and sell as 82 taels to defendant's brother, neither was he oat to make a profit of Tis 2,500 to counteract a loss of Tls. 1,500 which he bad incurred in connection with the transaction. He was afraid of Langkats, and wanted to keep away from them as much as possible.

Mr. Steavenson in his opening state ment said it was the custom of brokers in Hongkong to become liable to the agent | in Shanghai when they were ordered, to purchase in an outside market, as was done in this case. On 6th May, Mr. Potts received an order from Mr. Li Kin Tong to purchase certain shares in the Langkats Company Mr. Potts thereupon wired to his agents in Shanghai for quotations, and he was quoted Tls 6 per share Plaintiff then ordered 100 shares on behalf of Mr. Li Kin Tong, and forwarded him the usual printed form advising him of that purchase at the market price of fls. 62. No specific" shares were purchased. A very heavy slump occurred in the Langkat market and Mr. Potts, hear ing that there had been trouble with Mr. Li Kin Tong in delivering his contract to other brokers, asked defendant to supply hit with a margix. He sat cipated that if on a certain day Mr. Li Kin Tong did not produce the purchase money in accordance with the contract he Thon why did you keep the sale such would be liable to pay his agents in a secret--It was entered in my books, Shanghai, and would thus be a very and I always held myself realy to deliver heavy løser. There were repeated applica- | Li Kin Tong his 100 shares.

tions to the defendant to supply plaintiff with a margin, but as this did not, came, Mr. Potts, on the 24th June, sold the shares at the market price of Tle. 5. The aale of those shares, although it appeared to be a wrongful act, would be explained,

It did not alr the position of the parties in the least. Mr. Potts was quite pre pared to deliver 100 Langkats on the 24th July Defendant took up the position. that he would "settle it by and by." He had never repudiated the contract. The rule as to the decision of contracts was that both parties should he of the same mind, and he held that that was the case in this matter. Mr. Steavenson added | that the value of the shares by settlement day had declined to Tls. 32. He men- tioned also that a dividend was declared after the contract was entered into, and on the defendant's shares the dividend in Hongkong currency amounted to $136.51. On the 19th August plaintiff forwarded defendant a supplemental account credit- ing him with the dividend. This reduced plaintiff's loss on the sale of the shares to 91,442.33, but Mr. Poits had waived $442.33 in order to bring the action within the jurisdiction of the Summary

Court.

Mr. Harris The obvious reason, I submit, why you did not give Mr. Li Kin Tong netice of sale was that you had sold the shares at Tls. 62, and when Li Fo Lung wanted them you would buy again at market price and sell them to him. at the purchase price of Tls. 62I had no such idea.

Mr. Potts was then asked to draw up to Li Kin Tong in connection with the a specimen bill which he would tender purchase, etc,, of the shares.

INSTITUTION OF ELECTRICAL ENGINEERS.

PROPOSED CHINA LOCAL SECTION.

The Submarines claimed the points for their unplayed game with 88 Company R.G.A The case was rather involved. both a late arrival and non-start being alleged. After a protracted discus- sion it was found that the cause of the former was a badly delivered telephone message and was really the fault of neither team. The onus of the second parts was accepted by the League bers and associates of the Institution of arranged for them to play on a ground. A meeting of members, associate mem-Secretary, who acknowledged having Electrical Engineers was held in the which had not been allotted to them. On the evidence adduced, it was quite clear University of Hongkong on Monday

that both teams were ready and willing 5 p.m.

to play within five minutes of the suggested time, and so the Committee were unanimous in ordering the fixture to be re-arranged, a

at

The formation of a local section for Ching similar to those of Cape Town and Calcutta was discussed, and it was resolved unanimously to petition the parent Institution in London to create a local section to be known as the China Local Section.

Professor C.A.M. Smith reported that he had circularised all the members of the Institution resident in Chica and that practically all of them had replied

favourably.

The match Navy v. Army was decided on for Boxing Day at Happy Valley, pm were suggested for place and time and the Hongkong Club ground and 3.30 of kick-off, igested fores were reported

H.M.S. Tamar Reserves were by the Hongkong Police for having failed to turn up st Happy Valley last Saturday to play

a League match. that the game should be refixed. Ultimately it was unanimously decided

MATCHES FOR DECEMBER, 1913.

EXHIBITION MATCH,

to pay this "extra money,

ז:

s

he

OUR CONFIDENCE JUSTIFIED.

We undertako to refund the Cost of any

RUTTONJEE

& SON,

WINE AND PROVISION MERCHANTS.

termed it, should they prefer not to. H. In this ke was, doubtless, literally correct,, for it is certain that the Chinese law of those days took no cognizance of joint stock companies and similar foreign inventions; none the less, the decision disclosed a state of affairs that went to the root of commercial relations-in- China, for, as it was expressed by the Shanghai branch of the China Associa tion, "the validity of all contracts now | MAPPIN&WEBB, becomes dependent upon the rulings of the Chinese Courts based upon a shadowy, and to us unknown, law."

It is not, however, solely from the

law that these difficulties spring. They chaotic state of the Chinese mercantile are inevitably multiplied and accentuated

LIMITED.

31-

NEW CONSIGNMENTS

when there is so much uncertainty as to what the Chinese law, that should govern STERLING SILVER WARE. a Chinese contract, really is, but even if Ching had a mercantile code, as definite as that of a European country, difficulties would still wrise. This must always be so when the two sides of a contract are

breach of a contract by a British party han to be sued for in a British Court and

It was resolved that a provisional com-

secretary be elected to suggest officers, mittee consisting of seven members and a Boxing Day 26th-Navy ». Army, Hong-governed by different laws when a communicate with members in other parts of China, and to report to the parent

Institution....... The following were elected #B Committee-Mr. W. L. Carter,

Clairman.

at 3.30 p.m. kong Club ground, Referee Mr. F. W. Eager. GUNÝTED SERVICES LEAGUE DIV. ĪME Saturday 13th-ZRE Naval

ground at 1pm Referce Mr. A Wilson,

Wednesday 24th-B.G.AR.E... Mill tary ground at 3.30 p.m. Referee: Mr. W. Eager.

HONGKONG LEAGUE-DIV. 1.

Saturday 8th.-H. K.F.C. R.E., Club

Saturday 20th.-H.K.F.C.

ground at 4 p.m. Referee: Mr. F. W. Eager

Tamar,

Club ground at 4 p.m. Referes: Mr. F. W. Wright,

UNITED SERVICES LEAGUE DIV, II,

under British Law, while brench by a Chinese has to be the subject of an action in a Chinese Coart and is determined by

Chinese Law. It is in this connection that there is a possibility of China's stamp duties affecting foreigners, even though they do not apply directly to them. If when these stamp duties are in force, a Chinese has to be sued in Fespect of a contract to which he is a party, the question whether the document

PRINCE'S PLA TE

(GUARANTEED FOR 30 TSA..

CUTLERY

From the

SOLE: AGENTS:

is or is not properly stamped niny bo CHS. J. GAUPP

vital to its validity in a Chinese Cuurt and under Chinese Law. The disadvant

Plaintiff denied that his letters to defendant were sent merely to bluff him. He did lose faith in Li Kia Tong and he was anxious to sell the shares. His action in that case was founded upon the wrongful refusal of Li Kin Tong to take up the 10€ Langkats, which were not Major C. W. Davy, Mr. E. T. Williams

were just a 100 specified abares;

of Langkats. He had nct | Prof. C. AM. Smith,, Mr. F. Graham, endeavoured to establish privity between Mr. C. N. M. Hamilton and Mr. C. Li Kin. Tong and someone else.

Strafford Secretary-Mr. A. G. Warren. Prot. Smith was prosposed as Chairman, At a subsequent committee meeting,

After his Lordship had examined the but withdrew, stating that he felt that specimen bill and heard the corroborative the first Chairman should be a commerciai evidence of Mr. Potts asistant heman, Mr. W. L. Carter was elected announced that he would reserve his judgment.

Chairman and Major C. W. Davy v Wednesday 3rd.--Hongkong Policor. Staff and Depta, Military ground at 4 p.m. Referce: Mr. H. Coxon. Saturday 6th 88 Co. R.G.A. v. Sub-age of having the same contract governed marines, Military ground at 4 p.m. by two different laws is particularly Hoferee Mr. A. P. Storrie.

illustrated in cases of claim açd counter- Wednesday 10th-Submarines

claim, or set-off, when the two cases have to be tried separately, each as a substan tivo action, in different courts and under different laws. Nor is it only in cases between foreigners and Chinese that there is this possibility of difficulties arising, for the same state of affairs would exist in respect of, say, an Anglo- German contract entered into in Shanghai, and it is not difficult to Reimagine the tangle that might arise, eg, in winding up a bankrupt estate if every debtor to the estate took advantage of extraterritoriality pushed to its extreme | limits. ̈ ̈ ̈|

THE FIVE-BARRED: FLAG OF CHINA.

AN OLD EMBLEM PUT TO A NEW USE.

Mr. E. T. Williams, who was the

IMPROVED MINING LAWS FOR CHINA.

PEKING, November 26th, The Ministry of Mines has issued & statement, beginning with a preamble, in! reference to the country's great mining wealth, stating that throughout China there are no more than five mining enter prises with a capital of $10,000,000 and live with $1,000,000..

although good mining laws are necessary. The statement then continues: Firstly, good men to enforce them are also re quired. The statement instances Japan and suggests the establishment of special departments in all provinces on lines similar to the Japanese system.

Secondly, it refers to the aversion of Chinese capitalists to invest money in foreign capital is necessary, but states. that restrictions should be placed on site capital,

It is also considered that foreign in- terests should not exceed forty per cent. Thirdly, the statement points out that Chinese land containing minerals have disposition to prevent its being opened up or to demand an exces sive share of the profits.

Band

D.C.LI, Naval ground at 4 p.m. Referee Mr. J. H. Menadue. Saturday 13th-RE. Res. v. Tamur Res.,

Military ground. t 4 p.m. Referce Mr AP. Storrie. Wednesday 17th Band D.C.L.I. v. Staff and Depts, Military ground at 4 p.m. Referee: Mr. J. F. Woods, Friday 19th-Tamar Res. 2. Hongkong Police, Naval ground at 4 pm. Re feree: Mr. A, A. Wilson. Saturday 20th.83 Co. R.G.A. . R.F. Hes, Military ground at 4 p.m. feres. Mr. J. Moran Saturday 27th-Tamar Res

marines, Naval ground at 4 p.m. Re. feree: Mr. A E. Bradley, Saturday 27th.33 Co. B.G.A. v. 87 Co.

Bub

American Chargé d'Affaires at Peking in the interval between the departure of Mr. Calhoun and the arrival of Dr. Paul Reinsch, and who, moreover, has spent nearly half his life in China, made the following interesting reference to the flag of the Chinese Republic in a speech at the American College Club dinner ir | Peking some days ago :---

Referring to the flags of China and Mr. Potts, in his evidence, said he had America, which were hung crossed behind him, Mr. Williams alluded to the change had dealings with the defendant previous which the former signallised in China. to the present affair, and mentioned The Imperial ensign was gone, he said, several of their deals. He had lost $2,000 the b'ue dragna no longer tried to swallow on one contract for 1,000 Green Island the red sun. It was stated that nine suns mining enterprises and assumes that R.G.A., at Lyemun at 4 p.m. Referee:

had already descended into his capacious Cements which the defendant had sold belly Thank Heaven, one sun was left to him but failed to deliver on settle-the Sun of Freedom, which still shone over ment day. After the purchase of the all. God grant that no dragon might ever eclipse its brightness! Instead of Langkat shares he and defendant had the dragon flag they now had the five- several conversations, and fearing the barred emblem. It was not a new fing, as defendant would fail he had many supposed. It was in use upon the always shown

As failed in the case of the Green Island Yangtzze as a commander's flag when he

HONGKONG F.34.S.TAMAR." Cements witness asked for margin on the (the speaker) first arrived in China. Its

It therefore hints that the Government colours had been given a new significance, Langkat shares. This defendant did not however. The combination of colours was inust be the acknowledged owner of sil For this game, which is to be player give. At this time there was a consideras old as one of China's oldest books, the mining properties similarly to foreign off at Happy Valley this afternoon, the

countries, and that the Government will Club will depend upon the following: able depreciation in Langkat shares and.

"Shu-ching," where it was mentioned draft regulations by which the owner of P. F. Cobb: 1. Stalker and A. Hamilton; he sold them to defendant's brother.

almost in the same paragraph as that the land and the prospector will each R. F. Long, W. F. Briggs, C. Rigden. M. L. Railton; which first gave to the world the senti- secure a fair share of the profits after N. L Railton, question by his ment that God says as the people say paying the Arising out of a

Governmenta moderate Edgeumbe, C. A Goldenberg, and .

Wilkie. Play commences at 5. o'clock. Hodour, Mr. Steavenson asked plaintiff to God hears as the people bear. There royalty. Renter

was no emblem more worthy of this new give his reason for selling without giving Government born out of such an age-old nation. The five colours were co-relatçıl by the ancient Chinese philosophers with the five elements-fire, water, earth, wood, and metal. They were also co-related contract if he showed that he had with the five tones of the musical scale, no confidence in him. He did not for in that ancient time they used the see the use of giving him notice as he pentatonic scale), and they were also used probably would not have acknowledged it, to represent the five virtues taught by the sages charity, justice, piety, wisdom, and Defendant held him to the contract, but honesty. He (the speaker) liked to think witness was prepared, if the market went of that flag not merely as a new emblem of new nation--the youngest born up, to give up the shares. He felt bound Republic and the only Republic in Asia to deliver the shares on settlement day.but as an old emblem associated with Plaintiff added that defendant had never the glorious past of China devoted to a repudiated the contract, and he had not new use He liked to think of it as the paid him.

Cross-examined by Mr. Harris, plaintiff said that the reason be did not give notice ef sale was because he was afraid that

defendant notice.

Mr. Potts explained that he was afraid Li Kin Tong would fail to complete the

rainbow of promise over-reaching the Republic, filling her people with hope and as a pledge that strengthened and guided by the five ancient virtues of the sages they would march forward to peace, enlightenment, and happiness..

1247]

And if foreigners find that extraterri- Wednesday 31st 83 Co. R.G.A. r. Sub

Mr. J. H. Menadne,

toriality is not, in spite of its rightly marines, at Lemun at 4 p.m. Re-valued privileges, an anmixed blessing, feros M. F W. Wright

Chinese sentiment towards it is very Wednesday 31st-R.E. Res. 2 Br Co. definite, especially since Japan has rig

R.G.A, Military ground at 4 p.m.

herself of the incubus,·· China has always Referee: Mr. E. J., Tyler.

been anxious to free herself from the implied stigma, though it is only in recent years that she has shown a corresponding anxiety to abolish the cause of the stigma. Her attempts to impose municipal taxation on foreigners, the readyear she lends to any adviser who claims to show her the way to drive a couch and six through the extraterri- toriality clauses, and Dr. Sun's proposal a year or so ago to throw Ching open to foreign residence and at the same tim to set up special courts for the trial of foreigners, are all straws showing the direction of the wind. In

Further encouragement was

Kiven to China by the Mackay Treaty of 1902, Article XII. of which reads:

PERTUSSIN.

Is a harmless and efficient remedy against all diseases of the respiratory organs, especially WHOOPING COUGH, CATARRH OF LARYNX, ACUTE AND CHRONIC BRONCHIAL

Bas been recognised CATARRH. ASTHMA, &c. which anequalled by the highest authorities. Also the AFFECTIONS

OF THE LUNGS will be greatly relieved by the use of it.

TO BE HAD AT-

THE MEDICAL HALL.

HONGKONG.

to

China having expressed a strong desire to reform ber judicial system and to bring it into 'accord with that of Western nations, Great Britain agrees

give every assistance to such reform and she will also be prepared to relinqush her extraterritorial rights when she is satisfied that the state of the Chinese Laws, the arrangements for their administration, and other con- siderations warrant ber in so doing."

(Continued on page 6.)

& CO.,

ALEXANDRA

BUILDINGS.

CHATER ROAD

CALDBECK,

MACGREGOR&Co.

(Established" 1864).

THE OLDEST FIRM OF WINE AND

SPIRIT MERCHANTS IN THE

EAST.

CHAMPAGNES,

SHERRIES,

MADEIRAS.

· MARSALAS,

'PORTS,

CLARETS,

BURGUNDIES,

HOCKS.

MOSELLES,

WHITE WINES,

Bis., &c.