1925-10-23 — Page 3

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THE STOCK EXCHANGE ENQUIRY (Continued);

(g) It would appear that since the hap pening of the crisis in June no systematic, euquiry has been held by any of the Exchanges into the con- duct of its members; at any rate, no public intimation has been made of the expulsion, suspension, or censure of any broker.

h) We question the advisability of keep- ing the Exchanges closed for a long period and cannot help feeling that it is unfair to the general body of the public.

13. We, therefore, have euuse to be tieve that the share market has been carrying units business for some time just on a thoroughly unasind basis and, even if the Anancial crisis 'had not taken ] · place on the 2nd Jane, the time whal konci ta come in any case when a general slump in the market would have had very serious consequences,

PAR AIL

THE REMEDIES,

-It is dibeult to deal with the Legislation situation by legislation. must be fair and impartial, and there is no more reason why it should be aimed at dealings in stocks and shares than at dealings in any other commodity.. Speculation takes plter in many other things besides storks and shares, and

ue can instance the great amount of speculation which take place here and elsewhere when tits are opportune in various, commodities and also in the eur- rencies of foreign countries. The sound- ness of this view is borne out by the i fact that none of the world's big stock exchanges are governed by legislation hat by rules made binding by them upon their members and very rigidly, enforced in order that the reputation of the par- ticular exchange may be upheld.

17.Thr obvious remedy then for the present state of affairs in Hongkong is the reorganization of the Exchanges by their members by amending and adding to their rules and, above all, by enforc ing strictly those rules when they are wide.

If the members of the Exchanges will not do this it would be possible by legislation to enact rules which would

THE HONGKONG DAILY PRESS, FRIDAY, OCTOBER 23, 1925

WAICHOW AFTERMATH.

PROPERTY SALES. Yesterday there were four property

sales 2-

THE REDS CASUALTIES.

Mr. A. G. da Rocha contlucieril two ad! are persistent rumours that a mem

BY A CHINESE CORRESPONDENT.]

his sales-room. The fist leasehold pro- Ber of the Exchange is insolvent or has connutted a breach of the rules,

According to an officer just returned party he put up was No. 31a, Pokfulam In such vestigate the rumours. cases the member's books should be from Walchow it is said that the casualties Read, which was disposed of in one lot. inspected by the Committee if con of the Red Army during the recent hattle The property, which was wild by order Aniong those killed of the mortgages, contains in the whole sidered necessary The Committee were about 1,300.

were one Brigadier-General, three majors, an area of 2,807.80 square feet and is Crown Lease for the should deal severely with all cusos where it is satisfied that a member N.C.O% and 420 privates. There were held under

Also number of Arrikers killed and residue of years from January 30th, has been over speculating on his own wounded but the exact number could not account; that is, entering into com-

of $18.49, a proportion of the yearly mitments which he cannot finance if be ascertained. Apart from a few kiffml 18, subject to the payment of the sum he loses. The proceedings of the when actually engaged in directing opera Crown reas

tions, most at the Russian officers were Committee should be formal and

unhart, being engaged in the contain evidenced by proper minutes.

batteries at Fee or Leng some long distance away from the front line... DEMOLITION OF WALCHOW CITY WALL

.

Started at $22,000% bids of $200 and 8300 advanced this to 825,000, at which figure it was knocked down to Mr. Chung King Shau.

*300 from

WIT

(i)-Admission of Member Committees ought in future to exercise

The second leasehold property disposed of is situated at No. 13 and No. 138, much greater caution in admitting niembers. The attitude of the Ex-

It is reported that at a meeting helt Wellington Street, and was sold by changes in the past, with the excep

on the 17th instant at the Headquarters order of the mortgagees. The area is tion perhaps of the Hongkong Stock Exchange, appears to have been that as heklung a resolution has been passed 11.2971 square feet and is also held under anybody could become a member it for the total demolition of the walls of Crowa lense. The annust Crown rans he could buy a seat and pay bis en- Walchow City, A telegram has been sent is £688. trance fee and subscription Little to the Military Council at Canton with attention appears to have been paid request that the Strike Conanissing he to his real nancial position or to his approached for the enlistment of 1,000 It strikers to undertake the work. It is said sense of moral responsibility. might be said that the price of the that the Strike Committee have acceded seat was a guarantee of his financial to the request and preparations are being cases the made to despatch all available strikers to soundness but in certain money in question has been all that Waichow, in the course of the next few the intending momher possessed and days. in others even that money has been e borrow. Here also the Rules of the London Stock Exchange might with advantage he copied. Under Rule 8: a candidate for raembership has to state in writing his personal history and necupation or employment since he came of age.

(iv)-Authorized Clerks.

BARBERS AT VARIANCE. SEQUEL TO UNPAID WAGES DURING STRIKE.

Court yesterday At the Summary before Mr. Justice Wood. a Chinese No member should be allowed to employ barber, camed Chiu Hing, claimed 854.25 an authorized clerk unless the clerk wages due from the Sau Sik Barbers' Mr. W. H. Hind was for plaintiff, in question has been approved by the Firm of Praya East. Committee. Rules 38 to 19 of the London Stock Exchange on this sub-whilst Mr. C. A. S. Russ was for the de jeet, might with great advantage befendants adopted by the local Exchanges. There are instances of irresponsible and untrustworthy persons who have been employed by certain brokers and have enused loss both to hrckers and clients by reckless dealing.

The

When the sum of

This property was started at $30,000

bidding

of

and $1200, and

Un to $38,900 brought this which, with a bid of 8800, it advanced to $37,000. 839,900 had been reached another bid of $800 brought the figure to 340.000. Two further bids of 800 and 8300 brought the sum to $43,000, at which figure it was knocked down to Mr. Chung King Shau. At the Chinn Anction Rooms, Mr. E. V. M. R. de Sousa disposed of lense hold property certaining Nos. 129, 130, and 132, Wellington Street. The annual Crown rent is 827.05. And the aren 1,917 square feet.

The itarting prive was 840,000 and this was advanced by 8500 and 31,000 bids to $42,000 nt which figure Mr. Tse Shi became the purchaser.

At Messrs Lammert Brothers auction

Road, Kowloon were put up in four lots. rooms Non, 434, 456, 458 and 460, Nathan by order of the mortgagee. As the resCTVA price on them were not reached, they were withdrawn.

Plaintiff said that he was formerly em ployed with the defendant firm as a barber. Aa uacle of his was a managing His (plaintiff's) wages were partner. $15.50 per month but he had not been paid any wages from the first day of the

PEASANTS AND PICKETS,

STORY OF FIGHT AT TAIPING. th moon to the 15th day of the 8th In this Colony the same person, acts moon, when he was dismisced.

both as broker and as jobber and it reason tendered by the defendants for

It is being reported that a serious does not seem practicable to insist not giving him his wages was that his

conflict occurred recently between peas- that, he shall not exercise both fune uncle had overdrawn his wages and that tions as the volume of business is not he should therefore repay the amount.

Cross-examined by Mr. Russ, plaintiff ants and pickets at Taiping Market in sufficiently large to enable it to be divided up. It is however imperative said that his uncle was now in Canton the course of which, four picket men in the interests of the publie that it whither he had gone at the beginning of were killed and 37 wounded, whilst the

broker is dealing on bis own account the strike, after a letter had been re-peasants had no casualties.

The story goes, that as a fishing junk he should disclose the fact to his ceived from the Hiu Yang Kew Wiri client and charge no brokerage. Non. barbers, union intimating that work loaded with salt came alongside the Tai- Plaintiff stayed because ping bridge, a strong picket seized the disclosure gives the client a legal right should cease. to repudiate the cransaction but there he was not a member of thy guild. Dar.junk. The junkmen were aided by the The Exing the first ten days of the strike he inhabitants in repelling the pickets who are few who know this

rule on the was in the shop but no customers came were, eventually detented The inhabit changes ought to have

ants were members of the Peasants' subject and see that it is strictly in

Volunteers.

he blading on every association of share()-Boking a distinct from Jobbing. brokers whether incorporated or not.. Legislation which forces certain terms upon parties, whether they wish to have them or not, is not uncommon. For in- stance the Harter Act in America, the Sea Carriage of Goods Act, 1901, in Australia, and the Carriage of Goods by Sex Act, 1924, in England all incorporate certain clauses in bills of lading whether the parties wish to have them or not. Such legislation should however only be a last resort, as rules adapted and ad- hered to by an Exchange itself have fär greater elasticity.

Is-The predeat administration of the Exchanges appears to need"attention in the following respects:--

(i)--The revision of the Articles of Association.

These are the rules under which the Each "Ex- Exchanges are governed. change might with advantage study the Rules of the London Stock Ex- change, A large number of these, are not applicable to local conditions. bat there are others which certainly should be adopted here hearing in mind that they not only ensure that all dealings with 'or between menders shall be free from fraud or dishonesty but also provide a very valuable pro-" tection to the public.

Without atteinpting to make an ex- haustive summary of the Rules in question the following are suggested as particu iarly important:-

In

(a) Candidates for admission must be re- commended by three persons of re- putation who will say that the in dividual is it to be a broker. London there is a pecuniary obliga tion on those who recommend a can- didate.

by A member may not transact business for a principal who to his knowledge ix in default to another member unless such principal shall have made satisfactory arrangement with his creditors.

A member unable to full kis engage- ments shall be publicly declared a defaulter and thereby, ceases to be a member. Defaulters may however be re-elected if they make good their default.j

d) A member may not couLive at a

thao failure by accepting less the full amount of his debt and

refand дру is liable to

or

money securities received from defaulter, provided such defauiter be declared within two years from the time of such promise, the pro perty so refunded being applied to liquidate the claims of the subse quent creditors. This Rule is aimed at "artificial.solvency and.." pre- ferential treatment" and, would of course, put an end to the practice here whereby an insolvent broker continues to do business after ad- justing his abilities by means of promissory notes.

(+) A defaulter in order to be eligible for re-election has to disclose the name of every principal indebted to: him and also eliver to the Official Assigaces of the Stock Exchange, or to his creditors, his original books and accounts and a statement of the sums owing to and by him in the Stock Exchange at the time of his failure.

The enforcement of the Articles of

Arnoutation when revised. The Committee of each Exchange.ought not to be disproportionate in size to the number of members. It is difficult to see why more than four members at the outside are required. This Committee should be re-elected yearly and should enforce strictly the Rules of the Exchange. Instead of waiting until definite complaints are formul-" ated the Committee should, if there

M

enforced.

#

A broker ought, also to be compelled to liselise whether the transaction is one directly between two principals or through the medium of another broker.

"

(vi)—Internal management of the Exchanges,

The procedure of the Exchanges ought to he regulated by proper rules. The greater number of the Rules of the London Stoe kExchange are concern- ed with the internal management of settlements so is to ensure that these will pass smoothly. None of the local Exchanges has. adequate rules on the subject. Almost all their procedure is informal and in the ease of dis- putes there is nothing beyond the mere opinion of the Committee in decide who is right and who is wrong. In particular there are, no rules de fining what is a Settlement Day, its uration and whether it can be past poned.

and no rules as to the working of the very complicated "ticket system.

(vii) The List of Quotations. The "Sales" column of the daily quot- tion liat bught to include only transac tions which are defhitely authentic- ated. At present there is nothing to prevent the insertion of bogus quot tions..

(viii)-Advertisements.

No member of an Exchange should be. allowed to issue a circular or adver. tisement to persons other than his own principală.

A

(ix)--Murgia

In view of the fact that in Hongkong brokers guarantee all transactions, it seems eminently-desirable that there should be a rule in all the Exchanges whereby a broker is required to obtain from his client, at the time" when any forward contract is made, a deposit. equal to ten per cent of the amount of the contract plus Brokerage" and stamp duty and to require a Curther deposite if the price drops to near the Len per cent. margin. The broker should be required forthwith to pay this money to the Committes of the Exchange and obtain a numbered re- ceipt for it which he should at once sed to the client. It has been stated by one of the witnesses and supported by another that the majority of the members of the Jongkong Stock Ex- chunge me of opinion that this pro-

will hamper forward business

What

Mr. Huss Did all the Chinese grow beards during the strike

Plaintiff: Nearly all our business way done with Europeans

One of the partners of the firm, giving evidence for the defence, stated that an agreement bad been made during the strike, whereby it had been decided that no wages would be paid. but that the partners and fokis would share the proats. He stated further that this was the system under which all barber shops were run in the Colony during the strike. Questioned by His Lordship he admitted' that the plaintiff had none of the profts. Judgment with costs was given for plaintiff.

b

H.K.V.D. CORPS.

When a report was made to the Canton Kurgument. company of cadets "was despatched to Taiping, and the chief and assistant in command of the Peasants' Volunteers were "Betained,

THEATRE

ROYAL.

GONSALEZ BROS.

PRESENT THEIR

Advice was received from Volunteer ITALIAN GRAND OPERA CO. Headquarters last evening that owing to certain unavoidable delays the Corps Orders for the week could not be pre- pared for publication, as usual, this morning.

They will, therefore, be" published' to- morrow. (Saturday) morning.

(x)-Deposits by Brokers. The requirement of a compulsory de posit by a broker would be some sort of a guarantee of his financial sound- We do not recommend insist- ence 'on such a rule provided the mar- gin rule under (ix) is rigidly enforced.. (xi)-The number of Exchanges and

ncus.

Saturday, October 31st, TROVATORE.

P

Monday, November 2nd, CAVALLERIA RUSTICANA. Tuesday, November 3rd, RIGOLETTO.

Wednesday, November 4th, BUTTERFLY.

Thursday, November 5th, TRAVIATA.

Friday, November 6th, LUCIA DE LAMMERMOOR.

Booking at MOUTRIE'S

$1.

$1. $2.

[2780

licensing of share brokers. Opinion among us is divided as to whether it is desirable or not to have more than one Exchange in Hongkong for dealings in stocks and shares, and as things are, the difficulties in the Way of amalgamating the existing

are so great that we can Exchanges are not recommend any change. Legally there is nothing to prevent individuals forming Associations of Limited Com- panies for the purpose of dealing in any commodity and it does not seein reasonable to attempt to restrict them from doing so for itic purpose of deal- For the ing ia stocks and shares. sasse reason it seems to be unneces sary to require share brokers to Le licensed. If, however, the Exchanges do not proceed to adopt the recom- mendations, made in this, repertor having adopted them,, do not inke measures to enforce them, we con sider that the Government might pro. ceed to enact legislation of the kind indicated in paragraph 17.

Such legislation should give the Court power to dissolve any Association of the kind referred to if, on the applica

The ideal daylight printing medium-gives tion of the Attorney-General, the Court is satisfied that the rules have the sepia tones by fixing only. Send a post- card for free illustrated booklet "Perfect been persistently disregarded. 18.We wish to thank the gentlemen Prints an Seltons." who have submitted memoranda for the consideration of the Commission, "These

La such a considerable extent prae- tically to cripple it and without for ward business it will be impossible to keep the market up." This is an satisfactory point of view. seems to be of importance is not "keeping the market up" but ensur- ing that business shall only be entered into by persons who can honour their obligations. No doubt the "margin" memoranda, especially the one drawn up rule would destroy a certain anunt by Br. J. P. Braga, contain valuable in

Seltona

BOLE MANUFACTURE19:

of forward husiness but only the un-formation which has been of great use WELLINGTON & WARD,LTD., sound portion of it, that is, the busi to us.

ness of persons who have no money We desire also to express our ap with which to honour their bargains.preciation of the manner in which the The man who is able to pay if he Serretary, Mr. W. J. Carrie, has perform-

LONDON.

SOLE AGENTS FOR CHINA:

Josees should not object to depositing |ed his duties, and of the work done by ALLEN & HANBURYS, LTD., n margin,

the linethend writers, Mr. Gelling and Mr.. Tattydad.

(Continued on next "Columu).

40, CARTON HOLD, SHANGHAJ.

TO-DAY & TO-MORROW.

LAURA LA PLANTE

Q

in

THE TEASER.

E

E

N

τη

1910 to 1925

Anniversary Number of GAUMONT GRAPHIC.

TOD SANBORN

The World Famous Xylophonist.

HONGKONG WOMEN'S GUILD AND MINISTERING CHILDREN'S "LEAGUE.

ANNUAL FETE AND SALE OF WORK

GOVERNMENT HOUSE GROUNDS (By kind permission of H.E. the Governor)

SATURDAY, October 24th, at 2.30 p.me Admission:-Adults 20 Cents.

- OM

IJ

Children 10 Cents.

Sailors and Soldiers in Uniform Free.

The Opening Ceremony will be performed by Mrs. RUSSELL BROWN. Come and See our Stalls filled with the Most Attractive and Usefal Articles for Christmas Gifts..

ONDERFUL AND THRILLING SIDE SHOWS Comprising

LUCKY WHEEL LUCKY DIP.

CLOCK GOLF. NAVAL CHUTE, GOLD FISH POND, BRAN PIE, ROLL, BOWL OR PITCH, ICE CREAM CART, SILKWORM EXHIBIT, Etc., Etc.

TICKETS 50 CENTS.

TEA GARDEN...

IN THE BALL ROOM.

Miss V. CAPELL WILL GIVE CHILDREN'S DANCING DISPLAY FROM 4.45 TO 6.80 zx.

CHILDREN HALF PRICE. TICKETS 60 CENTS.

AND

THE IMPERIAL CONCERT PARTY in Tax WONDUL EXTZERAINMENT. From 6 to 7.30 v,x.

TICKETS FRONT SEATS $1.00 BACK SEÀTS AND CHILDREN 50 CENTS."

[2673

BIG

BARGAINS

ARE

IN BEING OFFERED EVERY DEPARTMENT AT

SINCERE'S

AUTUMN

SALE

FOR

20 DAYS ONLY

From 17th October to 5th November.

OCTOBER VICTOR

ARE HERE.

RECORDS

·S. MOUTRIE & CO., LTD.

SOLE DISTRIBUTORS.

JUST ARRIVED.

ALIMENTARY-PASTE MADE FROM SEMOLINA

.*

MACARONI, NOODLES, SPAGHETI, VERMICELLI & GUT PASTE In Packets of Kilo 1 lb. 2 oz....45 cta. A Packet.

lb. 1 oz....... 25. cts.

Tel: 794 THE FRENCH STORE, 9, Beaconsfield Arcade,