1924-02-09 — Page 4

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CRISIS....

ACTION AGAINST A

the difference," said Mr. Kent. Brand Bros wrote to the plaintiff on March 31st, and pointed out the extremely unsatis fuctory state of affairs. They added that whilse all Arms were in a similar position, Brand Bros. had no previous years' pro fita on which to fall back.

Hi Lordship: What "was bäppening | to the goods all this time -They were in

COMPRADORE

INTERESTING CASE AT TIENTSIN.)

His Honour Mr. Peter Grain, Judge of H.M's Supreme Court for China, was, engaged at Tientsin last week bearing an Tientsin action brought by one u Shu Pingu bonded warehones I presume!-Xo, against Braod, Bros., Richardson & Co., my Lord. In Butterfeld & Swire's go

Jowns. and Dewhurst & Co., for the returü of) Compradore's guarantee and commission The defence was based on the alleged laihire of plaiati to fulfill contracts made with Chinese dealers whereby the defendants were cnuted losses. Mr. R. T. Evans is for plaintiff, and Mr. P. B. II. Kent for the defendant Brand Bros.

One of the buyers was the last witness himself. Does that mean that he sold them to somebody else?—The piniatiff was a partner in the firm of Yuen Lung, and they did business through Brand Bros. and through other firms.

The goods were all piece goods, ind they arrived in Tientsin in their due time? -Yo, my Lord.

The defendant, continued Mr. Kent, Yang Ya Tsun, who represented plaintiff had little confidence in the arrangement as Compradore, in cross-examination nd-sought between the foreign firms and mitted that the Chinese dealers were the bayers, and he expected plaintiff to banded together to boycott the pier goods take up not only his own goods, but to and refuse delivery when the exchange discharge his liability according to the went against them. Some of them got Compradore agreement. They were in goods from Shanghai and Japan iustrasi fact entitled at that time to insist on his of accepting their contract goods.

taking up the goods, and then sueing him for the balance. There was no question but that was the legal position.

In his opening address Mr. Kent re marked that the case was an echo of the Piece Goods crisis, and he briefly sketch- ed the conditions of the market leading up to it. When the exchange commenced to rise, the dealers did not settle it, and when the eventual fall took place they Estil refused to settle the exchange, and hoped it would rise again.. Then, when the very considerable debacle came, the dealers proposed that the contrags made in England should be cancelled.

CHINESE JUDICIARY INADEQUATE TO DEAL WITH SITUATION.

Plaintiff wrote in answer to Brand Bros. letter suggesting that plaintiff dis charge his liability, that he would do everything possible to get the dealers to take up their goods and asked that the matter be left "in" abeyance, Mr. Kent. submitted that was a request to the de- fendant to forbear from sueing.

Another letter from Brand Bros. inti mated that there could be no question of releasing the guarantee money, but this letter was not answered for three months despite the important statement it cou

tained.

"We ask," said Mr. Kert in conclu sion, that if a plaintiff comes into this Court for equitable justice, he must come with clear hands?

DEFENDANT'S EVIDENCE.

Į

What was the Gem's remedy?" asked Mr. Keit. **My learned friend's des cription of the matter in this opening address. is, I think, an apt one. The matter became a community affair. Now I am one of the last persons to criticise. the judiciary of a country in which we live, if net profitably, at least sportingly: Defendant, Mr. P. C. Colman, in evi and comfortably, and I don't want to dence, said that from 1916-1919 he traded say anything which will reflect improper fin his own name, and in 1919 be suggest, ly on the conditions which face a ford that he should trade under the name eigner in this country who, wishes to of Brand Bros, a firm which had gonn enforce his rights by law. At ang i de into liquidation in 1916, and of which hị the situation which arose was so ampris had been manager. cedented that the Chinese judiciary was scarcely adequate to cope with the situation.

As your Lordship is aware, we Have not got a Mixed Court here in Tientsin as you have in Shanghai. We have the Shen Pan Ting, which I believe i garded in some quarters as not entirely conforming to the Treaty, and there is the Magistrate's Court which functions under the provisions of the original Treaty, but we cannot say it is re satisfactory.

M. Kent: When you assumed that name, did you consider you were alter ing your status ag a private merchant- No.

Do you consider yourself an agent of Dewhurst & Co., or cf Richardson & Co.1 No, I should very much like to he Judge Grain (perusing the agreement): Yes, I see, the said rights shall be per. sonal.

When witness assumed the name of Brusd Bros he was trading in Man- churia, and he came to Tientsin at the

deposit in the name of Dewhurst & Co. This compradore ubsequently left, and Yang Yu Tsus proposed Hu Shu Ping aa

All cases have to be instituted through end of 1510. The Compradore who was the rather cumbersome procedure of employed in Manchuria made a guarantee representations through His Britannic Majesty's Consul. These representations are made to the Commissioner of Foreign Affairs. Then there is a long, series, of: compradore. investigations, a hearing is arranged for and then there is a difficulty in getting a judgment in accordance with recognised principles. There is also a difficulty in Scuring the judgment after, it has heen given,

The state of affairs is one of which your Lordship. as a Court, will have taken dae notice, and there will be no need for me to call the Coushlar repre sentative on this point,

siff, however, since December, 1919. The Witners had no transactions with plain. last contract was made on that date.

This

Mr. Colman paid the compradore Tis. 150 month until the time be suggested that "the staff should be dismissed. item of Ils. 150 was included in, the com was in February, 1821, and though the pradore's March statement, it did not appear after that date,

When the dealers refused to take up the goods, witness naked big compradore, the plaintiff, to act up to his guarnate, and wither make the dealers take them, for retire the goods himself.

Mr. Kent: Would it be right to say you pressed, 'the compradore to act Yes. He answered to this effect, "Don't worry. You have your compradore's ngre meet

And if that is the case when one Erm involved, then it is imposible to imagine the congestion which there would be if all the foreign, frms had decided to go to the Court at the same time. There would, I believe, be about fifteen hundred actions. The situation was unprecedent. ed, and there is really no machinery of law whereby it could have been dealt These matters were discussed between with. If it had been in England, and you?-Yes. I attended many meetings I suppose it would have been the same of the Piece Goods Association, and each in the United States, there would have time after a meeting, y compradore been bankrupty proceedings and out of would ask me what had happened.

it some kind of scheme for compromise And you informed kim 7-Yes, I keņt. would have been evolved. And that would him informed. have been the end of the matter.

In cross-examination Mr. Colman said The bankruptcy law in England is the he had no salary from either Dewhurat result of many forges working on the & Co., or Richardson & Co., but he had. basis of an equitable jurisdiction, ard a small commission. Witness denied that it is obvious that an ansatisfactory and the compradare told him after one meet- inequitable situation is apt to arise in ing that he (the compradore) would a case of this kind. We ask your Lord. retire the goods quicker than through any ship to consider the case on the general scheme arranged by the firms and the situation and as would be the position dealers.

under. English law, and treat it her. Evans: Who was the interpreter analogy, for the analogy-is very "strong,

-A relative of the compradore, but pald The case received official discussion, and by me. though the ultimate result did not, pass That sounds quite fair, Where is he through official channels, there is sufficient now!-I don't know. He was in my

for your Lordship to treat, the matter ploy until x weeks ago when we

as something bigger man the mere technicalities of law.

were collecting evidence for this case, and then he disappeared. I found after- His Lordship: You suggest that the wards that he was a relative of the com settlement should be treated

*S an pradore

arrangement come, to between the parties, It was the caston said Mr. Colman, and binding on all the parties-Yet, my Lord, and not as releasing the surety, but making the surety liable.

for the compradore to put up the Suarantee money or margin money in the name of the firm supplying the goods. Did you put up the margin money 1

No.

THE FACTS OF THE CASE. Referring to the facts of the case, Mr. Kent submitted that there was clearly-Yes.

Have you any capital in the business?

"

a contract of guarantee. The original How much I don't think it is neces agreement laid down quite clearly that eary to say how much.. the compradere undertank to become

-

His Lordship: You are not obliged to

responsible to the firm for all business answer.

introduced through him, and for the Mr. Evans: I want to find how he fulfillment of all contracts and other was doing the business. Whether it was transactions in the regular course of on the compradore's money,

business. The guarantee sums were to Mr. Colman: I had capital, that is be held by the firm as security against sufficient.

any loss or damage consequent on plain-

His Lordship: You can only ask the

tiff's failure to preform contracts. The question, and comment on it later if you agreement also stated that all goods must have no answer, Mr. Evans.

be cleared by the Compradore within six

position was made clearer by the agree-

Mr. Colman L will answer. if it is

months of their arrival in Tientsin. The necessary.

His Lordship Well, it is quite a per-

ment in the Spring of 1020, which stated sonal matter. You must answer or not that if for any reason the buyers failed as suits yourself.

self.

:

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Do you agree that if any had taken |

to take their goods, then the Compradore.

Plaintiff did not answer your letter f Mr. Esaus did not press the question delivery they would have got into very No, but he knew about it as he signed was under the obligation of doing so him- Witness did not have any dealings

direct with the dealers as it was all done hot water No. During the Japanese the agreement himsel "Thus the position that resulted was through the compradoro.

boycott they took in goods through the What, Ha Shu Ping did 1-No, but the that Brand Bros, were at liberty to sell The dealers made a very vigorous boy back door.

firm in which he was a partner did, the goods not taken up in 1890, and sue 'cott1-Yes,

Did you notify plaintiff when you Yuen Lung. the Compradore and the guarantor for

gigued the Liquidation Scheme '?—Yes...

** (Continued al foot of next exlumn).

The case was adjourred.