1926-02-08 — Page 5

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STRIKE” AGITATORS FOR HONGKONG.

THE HONGKONG DAILY PRESS MONDAY, FEBRUARY STT, 1926.

BANKRUPTCY COURT.

:

EXAMINATION OF G. P. AND

* H. A. LAMMERT. SHAREBROKING À REMARKABLE BUSINESS IN HONGKONG.".

RATHER LIKE A 'BOOKMAKER'S BUSINESS.'

The Chief Justice (Sir Henry Gollan) sat in Bankruptcy Jurisdiction on Satur- day.

}

Witness added that many of his clients Do you consider it reasonable to have were connected with Chinese banks, and incurred these heavy liabilities on behalf other agencies for lending money. When of your clients without security and with business was easy the rates were sustain-out the prospect of returning them 7-I ed. The whole thing depended on the thought I could have done so. market remaining stable; It would also dominate the facility of getting money..

His Lordship: You mean that it would dominate the psychology of the bankers, (Laughter.)

WHEN THE PANIC BEGAN,

His Lordship Take your loan from the P. & O. Banking Corporation. You over- drew on your securities --I had a very good surplus.

Replying to the Official Receiver, debtor said that apart from his house at Repulse Bay, his assets only consisted of a few shares the value of which depended on the market. Clients had refused the flat rate, and had insisted on the shares being carried forward.

A MORAL RIGHT."

Continuing, withèss said that after May a fairly good rate had been kept up, and the Shanghai Riots on May 30th did not have much infuence at first. Four days before the June Settlement the people had such confidence in the mar

The Official Receiver: You understand worth of shares were bought Had thoy that there has been great difficulty in waited and seen that the bottom was collecting accounts due to your firm from dropping out, they would have bought many persons. Most of them have dis much less. It was only after, the strikeputed them and legal proceedings might broke out that the panic started.

RELUCTANCE TO COME

SELECTED BY DRAWING LOTS.

(FROM OUR CHINESE CORRESPONDENT.] Strike agitators in Canton did not seem to respond with alacrity to tho' order to proceed to Hongkong to incite another

Messrs. George F. Lammert and H, A. strike; consequently they had to be select.

Lammert were publicly examined, ed for the service by the drawing of lots.

Replying to the Official Receiver (Mr. It is stated that by this means some 200 E. L. Agassiz), Mr. G. F. Lammert sail wore selected to go into what is called that he was born in Hongkong and was "imperialist territory." But they aree years of age. He started business in Anding the Chinese in Hongkong in no his own name as an auctioneer in Hong-ket that a quarter of a million dollars' mood for another strike and anti-British kong in 1590, his father also being in the .'" and, anti-Japanese circulars which have business. A sum of $5,000 was put into been received havo been promptly the business. His father died in 1867, destroyed.

but the firm carried on until 1990. His younger brother, Mr. H. A. Lammert, came into the frn in 1801. In 1914 the firm began to deal to a small extent in shares, but he was not then registered at the Exchange. In June 1917 he joined Mr. Worcester, a sharobróker and a mem- ber of the Exchange, and the firm became known as Worcester & Lammert. On January 1st, 1918, Mr. Silva joined and the firm tock the name of Messrs. Silva, Worcester & Lammert. On March 31st, 1920, the partnership was dissolved. In fact, Mr. Worcester had left Hongkong in 1917, but he acted as the firm's agent in Shanghai, and for that reason his name was kept. The firm was fairly such cessful, and on its dissolution; he received from twenty to thirty thousand dollars, During the time the Erma existed he had drawn about $1,000 a month."

IMPRISONED CANTON POLICE- MEN RELEASED.

KEPT IN GAOL TO PROTECT THEM FROM VIOLENCE,

[FROM OUR CHINESE CORRESPONDENT] The six Carton policemen who were put into gael-at Christmas for having given protection to the Chinese Christian Church ́at Wongsha (Canton) on the occasion of an anti-Christian riot have just been released. The District Attor ney was not convinced that the polive. inen were guilty of assaulting railway workers near the Church and would not prosecute them, a the labour unions! lemanded. It was apparently thought hext for the District Attorney to keep these policemen in gol until sach time ns the anti-Christian agitation had sub sided as it was feared that they would he set upon by the railway workers who wanted to have them punished.

ARSETS AT THE BEGINNING.

Continuing, he said that he went Home on leave in 1920, and on his return in 1921,

the firm of G. P. and F. A. Lammert (hea

His Lordship: The position would have been rather dangerous if the strike had nat begua?

....

have to be taken to test the matter!-Ï. can show proof. I have no carrying con- trset, so there would be no entry in my book to show that shares were carried Air. Lammert: I asked the Chinese forward. It is usual for other "firms to how they were fixed for the June Settle-have carrying contracts, or the work was ment, and they said that they had a done by professional carriers.N ranged everything; bat only one came and asked me to arrange for new, shares. I tried to curtail my Jane, busi- ness, because there had been a tremen- dous rush in April. I therefore tried to cut down and to set off for covering purposes.

man

LIKE A BOOKMAKER'S BUSINESH. Ilia Lordship: It seems to me rather like a bookmaker's busiess?

Mr. Lammert: It is not like that, be- The cause the bookmaker "hedges." great thing is not to have too many shares changing hands. I have known shares come back to my hands three or four times a day. It is a sort of vicious circle. The Oficial Receiver: Your firm End very heavy commitment in the June and his brother) started as sharebrokers. Settlement Yes, it was very heavy, but He (witness) had also a share in the I began to get cautious between May and auctioneering business, which was one of June. his private assets. In 1921 he had half- In May, the securities which the banks shares in a certain piece of land in Sham- held against you amounted to $1,315,000: suipe valued at about $50,000 but there At the end of July the amount was was $20,000 mortgage on it. This land 91,175,000-Yes, I had bought $926,000 had been since sold. He also had a small worth of shares for clients in May. The lot of land in the New Territories, which shares had not been taken away from me. he had tried to convert into a building Replying to His Lordship, debtor said TRANSAC-plot, but the Government had informed that it was the custom of brokers in TIONS ON SHAMEEN.

him that it had been kept. too long, and Hongkong to buy or sell some months for- they were going to resume it at a price ward. They had cely one settlement day something like $3,500. He had paid each month. The June Settlement did [FROM OUR CHINESE CORRESPONDENT. ]

about cents a foot for it, but the not take place, since on. June 21st, the Government took it back at about 3 cents day before, the banks intimated that it Since the partial resumption of foot. He had actually paid $5,000 for could not go through, and asked for a Shameen Native City traffe for the purit He also had $3,500 in the Hongkong postponement, for two weeks That was

Shanghai Bank, and about £7,000 worth pose of facilitating, Chinese banking of shares in London. He might also have transaction in the French and British had a few local shares at the time, bat Concessions for Chinese New Year pur-nothing to speak of. He and his brother poses, a number of Chinese have been carried on the business until their failure. able to visit the foreign banks. On the

CHINESE BANKING

Hongkong.

14

When

The absence of these costracts and no evidence in the books, makes it very difficult for us to get anything -Yes.

His Lordship: Your books do not show that you were carrying shares for clients. rather than on your own account --Yes, hub have a moral, if I haven't a legal hold on then. I ena prove that these things were done.

This concluded the examination of Mr. G. P. Lammert.

|

MR. H. A. LAMMERT EXAMINED. Mr. H. A. Lammert then went into the boz T

He said that he was born in Hongkong and was 47 years of age. He joined the auctioneering firm of Lammert Bros. in 1804 and remained, a partner until 1920. When his brother returned from Home leave in 1921 he had a half-share in the G. P. and H. A. Lammert firm. He had a half-share also in the property in Sham- shuipe and the New Territories. He also had about $10,000 worth of shares in the Chartered Bank, and £2,000 worth at Home. His own private banking account at present showed a deficiency of about A considerable number of 30 per cent. share transactions in his private share account were bought apart from the firm. They were not in the firm's books at all. His house in Princess Street was ander mortgage for $43,000 plus interest at the Bank of Canton.

The Official Receiver: Do you wish to add anything, by way of explanation or otherwise for the failure of the firm (-1 agree with the evidence which my brother. gave. Had it not been for the boycott, things would have been all right.

This closed the public examination.

PROPOSAL FOE COMPENSATION. ·

The Oficial Receiver said that, a prg,

The creditors; the gist of it being that. posal for composition had been made to debtors should pay a dividend of 25 per cent. within two years on the personal security of the firm, though it had not been in any way guaranteed. Debtors which they could make. One meeting of creditors had approved the scheme, but another meeting of creditors would be called. Whether the scheme would be Enully approved he could not say.

done and then the Government took her and postponed it for a month. July Settlement Day came along, his firm a position to take up the was not in shares they had bought for themselves or for their clients. A flat rate was then SPECULATION IN HONGKONG.

agreed upon, based on the difference be The bulk of the business was broker tween the amounts at which the shares first day, February 4th, 53 Chinese mem-ing, about 30 per cent some months, and were bought and sold. It was only com. bers of the staffs of the foreign banks even a 100 per cent occasionally. The pulsory on the part of the brokers their resumed service in Shameen, and about brokering business would involve the clients could refuse to accept it, and claim $330,000 were drawn out that day. Most carrying of shares, and very often be had their full shares,

to advance money on shares a week His Lordship: They were out to get of the visitors to the foreign banks were before Settlement Day, and if they would their full pound of flesh.. (Laughter.) native bankers, through whom Chinese not be paid for, they had to be carried. The Official Receiver: By having to customers have had to deal with the on. There was a great deal of it done in cancel these, your assets of $188,000 said that they were the best proposals

May were charged to a deficiency of a foreign banks since the boycott." The

His Lordship: That is because: there million and a half dollars? It was there Kuomintang Trade Commissioner would is a lot of speculation in Hongkong?fore entirely dependent on the market that the credit balance immediately only permit the Chinese to enter Shameen Yes, I am sorry to say.

Mr. Lammert added that on all the changed to a debit balance 7-Yes. upon payment of a fee of one per cent. carrying transactions he stood security, With regard to an item of $801,000, debtor said that it was in respect of cleani

Re LEUNG KAM SHUL. upon all sums collected from the banks

AVERAGE EARNINGS.

differences in carrying Many of these

Mr. E. S. C. Brooks applied for a re- there. Persons taking out securities pr Questioned as to his average earnings debts had been standing for some time. other documents from Shameen were re- from brokering, he said that they reached He agreed that there was not much hopeceiving order in respect of the Leung Kam

Shui Co. quired to pay a fee of $5 in respect of $33,000 in 1932; $72,000 in 1923, and of recovering any substantial amount. The Official Receiver said he, did not

$138,000 in 1994. He did not draw his each document, which had a value of not personal expenses on the firm: but owing that you were justified in allowing such think there would be any difficulty, but he would rather the case were adjourned. more than $5,000. On values above that to the strain of work during the war, he large debts to remain outstanding with There was a claim against Laprak & Co., figure, a charge of one-tenth of one per had "to go Home and his expenses were out security -You cannot get blood out which had to be sent to the trustees in

of a stone. It is no use sending a man His Lordship: The figures you have to the wall; I gave every man a chance given show that, the firm was very proto pay back. sperous 7-Yes, but March, 1924, was a You have been too kind-hearted to und time for brokers et $0,000; your clients-I have been lenient with there was a boom, and then it collapsed.

Mr. Lammert álso stated that he was His Lordship: You incurred the respon R THE YAT WING BANK responsible for contracts; if his clients sibility of your clients transactipas ?—

In respect of the estate of the Yat would not take the shares up, he would Yea have to pay for them. Formerly there

With regard to this sum of $50,000 Wing Bank, Mr. F. X. Remedios, for & Mr. John Roskruge Wood, MA. (Can was no such difficulty in Hongkong, but representing book debts, do you mean petitioning creditor, asked for an adjourn tah), barrister-at-law, who, for the third now it was very common. In that way that you, bought shares for your clients ment sine die with a view to withdraw

the profits of the firm were taken up and you had to pay their debts 1-Yes, I ing the petition altogether...... time has been acting recently as Puigne carrying shares for other persons.

paid everything, Judge of the Supreme Court of Hong-paid everybody in the May Settlement. kong, has been appointed to the substan tive post, in succession to Mr. H. E: J. Gompertz who was recently appointed Chief Justice of the Federated. Malay

cent. is exacted.

THE PUISNE JUDGESHIP.

MR. J. R. WOOD APPOINTED TO SUBSTANTIVE POST.

States

fairly heavy.

He

The Official Receiver: That statement shown that after having arranged for the May Settlement, there was a balance of $120,000 had been taken $139,000. up in carrying shares forward.

Mr. Laminert :-- $120,000-

HEAVY COMMITMENTS.

1

The Official Receiver: Do you think

them.

That figure of one and a half millions represents transactions which you made on behalf of your clients 7-Yea.

Therefore the major part of your busi clients, and if the market came out all ness was speculating on behalf of your. right you were sife-Yes; but some of these clients instead of having dealings

or three.

Bangkok. Until, the money was actually paid he would not support the applica tion, since the Receiving Order was de. Pendent on receiving these nsacts.

The case was adjourned..

The Official Receiver offered no object. tion and said that given time the Bank would be solvent.

The application was granted.

Re WAN CHENG LOONG.

A Receiving Order was made in respect of the affairs of Wan, Cheung Loong Mr. C. Brooks appeared on behalf of a

Questioned as to certain book debis, with one broker had dealings with two petitioning creditared to be $52,000,

he said that their recovery depended on the market remaining good He dis agreed that most of his clients were per sons in receipt of monthly salaries. Most of them were in business, and they might

W

"REMARKABLE BUSINESS."

His Lordship: I am not a broker, but it seems to me that it is a remarkable business in Hongkong. I times are goo well as with him. For that reason they then they are all wrong.

The liabilities were

and the assets about $40,000.

94

he THE YUI HING BANK.

MAJORITY OF PARTNERS BUN AWAY.

Mr. Wadeson applied for a receiving

Shing, a petitioning creditor,

In the past sixty-four years there have been eight occupants of this position, and the present is the third occasion on which the post has been filled by a Cadet Officer in the Hongkong Civil Service. Mr. James Russell, who was Puisne Judge have had dealings with other brokers as they are all right, but if times are wro order in respect of the estate of the Tui from 1883 to 1869, and Mr. H. H were under an obligation to others as The Official Receiver: The whole posi-Hing Bank. He appeared for Yo Fat Gomperts, who was appointed in 1909 and well. Some of the book debts had been occupied the position for 16 years were outstanding for a long time

The Official Receiver: You could not Cadets,

regard these sums as substantial assets? Mr. Wood joined tho. Hongkong Civil-No.

Loans to clients are stated to he Service as a Cailer in 1899 and a large 816,2253- lent money in excess of

The securitics here part of his service has been spent on the securities. magisterial bench He was appointed smaller than the loans made. A sum of firm1-Hy commitments were 500 Sugars, A receiving order was made.

600 Cements, and 600 China Lights: They Re KWONG LUEN HING.. $40,000 T lent without security.

His Lordship: But surely you over were settled on the flat rate. The t

Second Police Magistrate in March 1908.

In 1919 he was called to the Bar at Lin-

coln's Inn, and in the following year was appointed First Police Magistrate. Since then, he has acted as Puisne Judge on three occasions in 1990, 1992, and ar

again recently and his appointment to the substantive post will be regarded ass Well merited recognition of the ability which has distinguished his work on the Bench

tion depends on the stability of the mar ket. Take the account of Benjamin & Potts. The balance due to them for the June Settlement was $104,000. You were at that time dealing in shares to the amount of about of lakhs A little less then that,, about 6 lakhs.or were You had large dealings for your own

He stated that the majority of the partners had run away, and Shut Pang a clerk of the bank, gave evidence to that effect.

Petitioning creditor said, that debtors were indebted to him to the amount of $4.000

JD. Hutchison & Co. were petitioning

Hing

in-

looked that you had borrowed $20,000 in amount in which,ooo, the difference begreditors in the case of Kwong Luet May 125-I had securities against themvolved was $18,000, in promissory notes, I need not have tween the buying and selling price. actually borrowed at the time, but I had There was $6,119 due to Moxon & Mr. Hugh Jones, applying for an very heavy commitments in respect of my Taylor-Yes, they were for 300 "Star" terim receiving order, said that the clients at the time.

Ferries $2,500 was paid; that being the managing partner and the assistants had flat rate. Nearly $57,000 was due to me left the shop, and were believed to have | from clients.

absconded. The shop was now in charge of some fukis There were goods in the shop valued at $15,000, and the order was asked for to prevent the goods being seized by anyone...

The order was granted.

Nearly a million dollara ?Yes. The Official Receiveri Return to stability depended solely on the market remaining good-Yes

His Lordship If the bottom dropped out of the market your liabilities would remain, and your assets, disappear Yes.

There was a large amount due to the China Provident Loan & Mortgage Co. It was about $14,000. Was that owing to your carrying for clients 1-It was very largely cliente habilities,

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Overcoats, Suits Sweaters, Waistcoats, Socks, Golf Hose, Gloves, Boots and Shoes, Scarves Ties, Dressing and Bath Gowns, Travelling Hugs, Suit Cases, etc.

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