1926-03-11 — Page 4

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CHINESE BANK SUED. MESSRS. MOXON & TAYLOR AS

PLAINTIFFS. ..

"HOW THE LOAN WAS BSCURED). Mr. A. Nissin said in evidence that he was a partner of Messrs. Moxon & Taylor, Ica House Street. On June 6th, Mr. Chan Wing Fook, the authorised clerk

AN ALLEGED DEAL IN SHARES

Before the Chief Justico, Sir Henry of Messrs. Lammert Bros, had a con-

i

Mr. Jenkin: Were you bluffing Mr. Birkett or were you bluffing Lammerts Mr. Birkett know that this claim was not justifiable under the contract. He know that it was a pure and simple loan.

There is a marked difference in, the

would be entered up in exactly in the same way and in the same book.

If it were a loan and a loan coly, only loan rights should be enforced 1-Yea ̧.

Both you and Mr. Birkett knew in truth that this was a mere loan, and not a contract for sale 1—Yes.

-NO KNOWLEDGE OF AFFIDAVITS ILKD.

DEMANDING MONEY BY

THREATS,

STIFF FINE IMPOSED ON, CHINESE.

At the Central Magistracy yesterday

partment, employed as a driver for n

doctor, was charged with demanding

money by threats.

appeared for Messrs. Moxon & Taylor,conversation took place outside Messrs. Replying to further questions, witness fendant went to this man's house and

The case for the prosecution was that a man was fined $150 at the Kowloon Magistracy for a breach of his licence for selling fah. The same night the de-

said that if he gave him 340 he would not be prosecuted again. The complainant, said he had no money for hire, but de fendant returned the following night. Complainant told the polies, and twe tea-dollar notes, the numbers of which were taken by the police, were given to the defendant.

Gollan, at the Suprema Court.yesterday,rersation with him. The day before he Share Market, between hypothecation of afternoon, before Major C. Willson, a Meaara Moxon & Taylor, stookbroken had asked him to purchase 200 Wharves, shares and sale of shares f-Yes, but they Chinese chauffeur of the Sanitary De Ice House Street, sued the Mad Chuch, but he had refused, because Chan wanted Chinese bank, for the recovery of the market price which was 8193 Next $37,600 alleged to have been lent to the day he told him that he had a client who was badly in need of money, and request bank through Messrs. G. P. &

ed that he should arrange a loan to carry Lammert

Mr. Eldon Potter, K.C. (instructed 500 Wharres for him. He said that his by Messrs. Johnson, Stokes & Master) client was a Chinese, and that he wanted the money that day if possible. This and the defendant bank was represented foxon & Taylor's ofges. Witatis gave by Mr. F. C. Jenkin, K.O. (instructed by him terms whereby he would advance 8188 Messrs. Lico & Russ)...

on each share until the July Settlement Oatlining the case for the plaintiffs, when the money would have to be repaid Mr. Potter said his clients claimed the cheque for $37,600 would be given him

at 810 per share. It meant that return of $37,000 which they had lent to that day, June 6th, and on July Sattle. defendants on June 8th, 1925. The case Afr. Chan the left him and went to

ment be would have to repay him 338,150 in fact was quite simple; it was one inspeak to a Chinese who was standing whieh an undisclosed principal was being about five yards away. He soon returned sued for a debt due by him

and said that he would accept the terms. Witness did not know the name of the The facts were that Mr. Tsang, the client at that time, but it was quite usual place in the Official Receiver's Office,

for brokers to arrange loans in this way, and it was the invariable practice not to disclose the name of a client. Mr. Chan brought him the 200 Wharyes and he gave him in return a cheque for $37,600. A purchase note was also exchanged, signed by Messrs. Lainmert.

manager of the defendant bank, had asked Mr. Chan, an authorised clerk of Messrs, G. P. & H. A. Lammert if his firm would buy from him 200 shares of the Kowloon Wharf & Godown Company. Mr. Chan replied that he could find no buyers at the price asked for, whereupon Mr. Tsang said that it was absolutely necessary for him to have some money and authorised Mr. Chan to negotiate and arrange a loan of the security of the shares. Mr. Chan thereupon approached Mr. H. A. Lam- mert, but he said that he was not in position to grant the loan. Mr. Chaa then approached Mr. Niasim, a partner in the firm of Messrs Moxon & Taylor Mr. Nissim agreed to advance the money. on the security of the shares at the rate of $185 per share against the market quotation of $100. The loan would have to be repaid on July Settlement day, the rate of $102) per share. The bor rower would therefore have to pay a share in addition to the money actually borrowed. When Mr. Tsang was inform ed of the terms he accepted them, and he had been expressly told also that Messrs. Moxon & Taylor were, the lenders of the

money.

MONEY NOT FORTHCOMING-

said that he had not looked at the Bank- ruptcy Sios appertaining to the Lammert estate, nor did he know that Mr. Birkett had sworn an affidavit in the proceedings., He agreed that the only knowledge which Mr. Birkett bad of the transaction had he anything to do with the affidavit had been acquired from biz Neither which had been filed on behalf of Mass, foxen & Taylor. He had taken no part in any of the conferences which had taken Mr. Jenkin: I put it to you that the case that Lammerts were agents for the Man Chuen Bank was an eleventh hour thought on your part 1-No.

It is a new caso 1–No.

Do you know that Chan Wing Fook of Lammerts filed two affidavits - No.

Mr. S. E. Ross also did? That is the first I have heard of it."

Defendant's story, was that the "com- plainant approached him and asked if he would see the doctor-with a view to preventing further prosecution, and sag- gested he (complainant) should make the doctor a present. Defendant told him that the doctor would "not accept a present.

Dr. D. MeCallum, who appeared for Mr. Jenkin read a statement from this the defence, said that he did not think affidavit, and witness said that it want that there would be anather prosecu

a remark by defendant to the complain- erroneous Questioned with regard to a letter sent by the firm's sclicitors to Messrs. Lammert, in which the latter were described as their agents, witness said that it was not correct to ao describe

them.

tion in three days rould be considered as

a threat.

His Worship said it was not the kind of thing he would like said to him, and be did not think anyone else would like it. said,

On July Settlement the money was not paid, and pressure was brought to bear on Messrs. Lammert. On August 4th Messrs Lammert signed another note whereby it was agreed that the shares should be carried on for a few more months. Soon after Messrs Lammert sited their petition; and the money was not received from them. A demand was

You made your case simple. Is it not then made for the name of their cliente, strange that both your special manager | Mr. McCallum submitted that defend. and the name given was that of the defen

and your solicitor made this curios error? ant's story was probably a true, one. dant bank. He had several interviews I made it clear to them that Lammerts His Worship said that he bad consider- with als Ross, who represented Messrs. were agents for the Man Chuen Banked the case and had made up his mind Lammert, and he had a letter from him! gave instructions for the writ in this to convict. Defendant would be fined on November 9th enclosing another letter case

8950, or three months' imprisonment. At this stage the hearing was adjourned signed by the manager of the defendant bank. He recollected that ME. II. A. until the afternoon. Lammert saw Mr. Birkett on the ques- tion of interest, and said that he was quite willing to take up the shares in for a reduction in the interest November, but that his clients had asked some discussion Mr. Birkett agreed, and the $1,504 was agreed upon as intarest.

After

HOW THE DEFENDANTS WERE FOUND.

CUSTOMB OF THE STOCK EXCHANGE "At the afternoon hearing, Mr. Jenkin continued his cross-examination of Mr. Vissim

book, witness said that an entry there On being referred to his firm's cash showed that they had bought shares from Messrs. Lammerts. They were also shown Cross-examined by Mr. Jenkin, witness as sold to Mr. Dastar. The profit shown said that what took place on June 6th was $157.50, 8150 of which had been paid was seza to by him solely. He consulted by Mr. Dastur for brokerage fees. Une no,oue. A further extension was granted cheque was shown as being received from Sicssrs. Lammert in August after he had Mr. Dastur, and their cheque would be consulted Mr. R. A Dastur, who was a paid to Lammerts. According to Stock client of Messrs. Mozon & Taylor. He Exchange rules, the contracts were not

rm. did not consult any other member of the stamped.

His Lordship This is the custom of the He could not remember "exactly when he ascertained that the Man Chuen Stock Exchange; then what about the Bank was the undisclosed principal, but Law

SMILES IN COURT.

SOLICITOR IN A DUAL ROLE.

is

At the Central Magistracy yesterday, the case in which a. Chinese charged with the lacceny of a quantity of crude oil from the Asiatic Petroleum, Company's installation at North Point again came up for hearing before Mr. Lindsell.

Mr. L D. Turner, who appeared for the prosecution, in reply to His Worship. why asked him if he were ready to go on with the case, said he had been naked" elsewhere, to inform the Court that he by Mr. C.A..8. Russ, who was detained had been instructed to defend.

Mr. Turner suggested that Tuesday afternoon should be fixed for the bearing

of the case..

His Worship agreed to this, when it was stated that the case would neces- sitate a fairly lengthy hearing.

Continuing, Counsel said that defendant gave Mr. Chan & delivery order for the shares, which at the time were deposited in the Hongkong & Shanghai Bank is defendant's name. The shares were brought by Mr. Chan, to Mr. Nissim, who gave him a cheque made out to Messrs. it was a few days after the July Settler. Jenkin I am considerably in the G. P. & H. A Lammert, because it was

ment. He remembered Mr. Birkett writ- dark as to how these things are done.

Mr. Potter rose and explained that it not the usual procedure in practice for ing to the Stock Exchange requesting that one broker to reveal to another the names casrs. Lammert be written to and asked was only a notice that the transaction had taken place. The Government was of the clients for whom he was negotiat. to divulge the name of their clients. ing. Eventually, Messrs. Lainmert made

Replying to His Lordship, witress said not cheated in any way

Witness remarked that brokers did not caused when Mr. Turner said "acting At this juncture some amusement was out a cheque for the defendant bank for that, it was the official way to do it. the same amount

***Iteplying to Mr. Jenkin, he said that pay brokerage ices.

Replying farther to Mr. Jenkin, witness bail, and acting for myself I oppose it. for Mr. Russ I make an application for several requests had been made to Messrs. Laminert to give their clients' names, but said that the Share Register Book would will your Worship consider it?" they had not done so. A letter was show that the script was given to Mr.

Dastur:

Sub-Inspector Field opposed bail on therefore sent to the Stock Exchange. Messrs. Lamunert through the StockHe had not. There was a new contract

Had he been sceking to purchase behalf of the police, and His Worthin The next day a letter was received from Wharves from you previous to June 6th 7 remarked That settles it" Exchange.

sad he paid the brokerage.

His Lordship asked if they had endorsed the cheque, and Counsel replied in the negative. He said that they simply eu- tered up the cheque in their own booki, and gave another cheque for the same amount to the borrower. A document then passed between. Mesars. Lammert and Mesara. Moxon & Taylor. It was

Mr. Jenkin: When did you frst know the usual document paased in the case

that the Man Chuen Bank were the unbewildering than ever.

Mr. Jenkin remarked that it was more on the security of 200 Wharves Lam- of a loan made under such circumstances, disclosed principata in this case-When

merta could not do so, and he therefore ensuring the payment of the loan on the Lammerts failed to take up the shares money which he wanted to turn over at Taylors. He told Mr. Nissim that he

Witness said that Mr Dastur had some approached Mr. Nissim of Moxon: terms agreed upon. It also ensured that on the July Settlement, they asked us Messrs Lammert would at the July to carry the shares on until September. shires. When Mr. Chan came to him and quotation for the day. Mr. Nissim offer a reasonable rate of interest by carrying wanted $100 per share, that being the Settlement pay Messrs. Mexon & Taylor On the September Settlement Lammerts naked that the shares should be carried ed 8188 per share for two mouths until $1924 on each of the 200 shares, when again failed to take up the shares, and forward, he (witness) informed Kr. the July Settlement, on a basis of repay- they would be returned to them. This it was then that we naked for the names Dastur that he had a turnover for him ment at $18 per share. He communic would be effected by means of a purchase of their clients. They delayed in giving if he wished it. He also told him what ated these terms to Mr Tsang, who was note. Messrs Lammert were authorised the names, so we wrote to the Stock the shares were. He agreed to give them in Ice House Street at the time, and gave. by the Man Chuen Bank to raise a fon Exchange. It was then that we learnt a loan and paid the brokerage, which was it as his opinion that the interest wis on their behall, and, as agents, they that the Man Chuen Bank were the the commiaaion which Moxon & Taylor rather high secured that loan from Messrs. Moxon & people to whom the money had been really had for the transaction. His profit could not be helped us be was badly in

Mr. Tsang said that it.. Taylor.

would be 8892,50

† need of money, and requested him to close All you would out of this was $150 the offer with Mr. Nissim. A choque was for brokeragel-Yes, on the transaction then made out payable to Messie, Lum- of June 6th

mert, and a cheque on Lammerts was Is Mr. Dastur a friend of yours Yes given for the same amount to the Man And you did your best to place his Chuen Bank. This cheque witness hand- money for him-Yes. about #52,000. He (witncu)-did not let repaid at the July Settlement. The de

The amount which Mr. Dastur had was of the bank. The loan was to have been. ed to Mr. Cheung, the assistant manager

agreed that an entry in the books in the transaction was one of purchase, and had not mentioned it to anybody. He Mr. Tsang tried to raise the point that it be known co the market; in fact, he fendants could not raise the money, ani

dicated a sale of shares and not she asked him to set off on the terms of

Jent.-.-

He made no entry of the fact in Mexou & Taylor's "books.

Mr. Jenkin: None of the clauses printed on the backs of these contract notes were complied with in this transaction-No. of money against delivery of shares

Your only right would be for repayment Yes..

Counsel referred to the afidavit filed by defendants, and claimed that they were an admission of having received a loan. In fact, Mr. Tsang bad approached the manager of the Karn Wing Bank, but failed to raise a loan from him, but he advised Mr. Tsang to try Ice House Street on the strength of the 200 Wharf shares. It was a fact that the money was lent and it was repayable on the next Settle do anything between the day of contract There were no rights on either side to ment Day. due time; when the money was not forthcoming, plaintiffs pressed and Settlement Day, nor would any Mestre. Lammert for repayment, but they fresh rights -No.

fluctuation in the market give rise to any soon afterwards filed a petition in. bank rupkey. The Oficial Receiver had dis claimed any interest in this money, and informed them that if they wished to get

A UNJUSTIFIABLE THREAT.

hypothecation.

the flat rate at the Stock Exchange. You put the transaction in the book. That was after the financial crisis

Wit- why didn't you put it on the contractness told him that it was a loan. The Witness maintained that the transaction We did not want other brokers to know flat rate was about $190, and defendants was a mere loan. On Mr. Jenkin produc- how many contracts were put there in the would have saved about 32 per share.. it they must get it from the bank. Ard ing a letter which stated that if the money

course of a month. in fact it had been agreed by the defen was not forthcoming the shares would be

He said that he was willing to pay $190, Re-examined by Mr. Potter, witness but he could not get the money from dants to pay back the money in full. It soid, and on being asked how he squared said that Mr. Dastur was not in fact the defendants. would be seen that in plaintiffs writ his assertion with regard to that, witness purchaser, but it was from him that the interest to the amount of $1,504 was also did not reply to Counsel's satisfaction. money came. The shares would be retara ber 6th a meeting was held at the Official Continuing, witness said that on Gezo- claimed. What happened was that when The question was repented by His Lord.ed to Lammerts when their clients bud Receiver's Office, when there were present defendants did not pay up, pressure was ship, and witness said the letter was repaid the loan. The form in which the Mr. Ross, Mr. E. A Lammert, Mr. Tung. brought to bear on them, and defendants written as a threat to Messrs. Lammert, transaction was made was the customary and himself. Mr. Boss naked Mr. Targ asked, for time. It was eventually agreed to give them time at a higher rate of statement in this letter with the evidence made in Hongkong. Had Moxon & Taylor three months and four months' time. He His Lordship: Can you reconcile the form in which such transactions were to repay the loan, and Tsang asked for interest Mr. Teang, the manager of the you have already given 1-I cannot recon-

purchased the shares from Lammerts, did not dispute anything. The solo ques bank, said that the interest was rather cile the reference to margins in that let they would have received a purchase note tion discussed was the inability of the high, but Messi. Moxon & Taylor pointer with the evidence I have already given The letter claiming margins from Lam bank to repay the loan. Mr. Ross, how ed out to Mesra, Lammert on August about this transaction. 4th that they were willing to carry the Mr. Jenkin: If the transaction was bring presure to bear on their clients, repayment was fixed for one month from merts had been sent so that they might ever, relused to give time, but eventually loan over but they would have to be paid merely loun between your firm and At that time his firm had judgment for that day. The question of interest. was for doing so. The question arose then, a Lammerts you could not have written 845,000 against Messrs. Lammert later discussed at Messrs. Lammerts to the amount of interest. Mr. HA letter in those times --No." Lammert then went to see Mr. Birkett Then was it meal was Chan war Took, the authorised clerk Moxon & Tayloral drafted qut by Mr.

NEGOTIATIONS FOR THE LOAN..

** office, and Mr. Lammert left to consult and Ar. Birkett agreed to take 104 Did you consult Mr. Birkett with refer of Meters Lammerts, said that he was Ross setting out the terme. He (witness) The amount fix- interest if the money was repaid on ence to writing this letter No. I saw well Acquainted with Mr Tsang, the November 6th Mr. Lammert Communic. it only after Mr. Birkett had signed it. ated this information to Mr. Tsang, and

manager of the Man Chuen Bank, since him to take it away with him, and get explained it to Mr. Tsang, and naked he agreed to the terms A letter was your fim was claiming margins and transactions with the bank He was ask day Mr. Tsang returned, with the letter, It was not until then that you knew that his firm had considerable number of independent advice on the matter. Next then drafted and it was interpreted to threatening sale -No," Mr. Tsang, who was told to take it with On your evidence Mr. Birksit knew for him, but he could not get a buyer his presence

ed by Mr. Tsang to sell some Wharves and had appended his signature to ilin him. Next day be returned, and append- nothing about the transaction-I had He then gave him instructions to arrange ed his signature to it. The facts would told him wa show that Mesers, Lammert were author His Lordship: This demand for margin Lammert, and asked them if they could

for a loan. He then went to Meas ised to negotiate a loss on behalf of the and threat to sell was wholly unjustifiable arrange a loan for the Man Chuen Bank Man Chuen bank Mr. Potter then according to the contract entered into quoted a number of cases,

between you and Lammerts 1-Year P

(Oontinued on next Column.)

m

In reply to His Lordship, witness sid At this stage the hearing was adjourned that Mr. Trang could not speak English. until to-day. It is unlikely that the case will conclude this week."