1929-03-27 — Page 5

Page

FENG TO HELP HUNAN?

ENVOY REPORTED IN CANTON.

ULTIMATUM TO CHIANG UNANSWERED.

ODD STORY OF AN ARMS CARGO,

FROM OUR CHINESE CORRESPONDENT.

"

CANTON, March 20. It appears that Canton has de- finitely been drawn into the war between Nanking and Wuhan, as up to last night the Canton Govern ment had received no reply to the three-day ultimatum to Marshal Chiang Kai Shok. Practically the entire 4th Army, under General Chen Taai Tong, has been sent to the northern border of Kwangtung and are now reported to be march. ing vid Hansa into Kiangai Pro- wince.

FINANCIAL CHAOS

IN CANTON.

PUBLIC FEAR OF WAR.

STERN DEFLATION POLICY.

EXCHANGE DIFFICULTIES HOLDS UP HONG KONG

TRADE. »

[FROM OUR CHINESE CORRESPONDENT-]

CANTON: March 26.

The movements of troops has caused a considerable disturbacce in financial circles in Canter. The fear of war breaking out at any moment between Canton and Nan king has caused a run on the Cen- tral Band to assume serious propor- tions and the Government has had to call up armed men to keep order. "According to information from The Bank was crowded to the military circles, Marshal Feng Yü Hsiang has already sent an envoy doors all day yesterday with s to confer with General Li Chung amourous crowd who wished to Jen on the military situation in

Central China. The envoy is re-exchange Central Bank notes for portet to have expressed himself silver. Blows and brawls were fre in favour of the Cantoa and Wuhan use and to have stated that Feng Yu Hsiang will cust in his lot against Chiang, He was very in dignant at the detention of Marshal

quent despite the efforts of extra gendarmes carrying fixed bayonets, Later in the day a space was for- Tai Hain and gave this as the eibly cleared and roped off in front chiel reason for Feng's resignation of the Bank to which people were from his post at Yanking. Accord. ing to the envoy, Feng Yu Hsiang admitted "one by one as those

is greatly alarmed at Chiang Kai inside beft. The beseiging crowd Shek's action in this matter, saying

THE HONG KONG DAILY PRESS, WEDNESDAY, MARCH 27, 1929.

SERIOUS

ALLEGATION MADE BY

COUNSEL.

CHIEF JUSTICE AND HINTS OF ALLEGED ALTERATIONS" TO BOOKS.

IMPORTANT PROMISSORY NOTE CASE.

BIG CHINESE FIRMS WÄGE LEGAL BATTLE.

Allegations of a most serious nature were made by Mr. Eldon Potter, K.C. in the Supreme Court yesterday when he opined that a certain book which had been submitted as evidence in an im- portant case had been tampered with while in the custody of a certain firm of solicitors. The statement was made during tha hearing, before the Chief Justice (Sir Henry Gollan) of an action involving two well-known Chinese firma.. 29. Y M

The plaintiff, as head of the King'On Tong; 80 Third Street, Bued the Ma Pak Leung arm, 310, Queen's Road Central, for money alleged to have been lent under a promissory note dated January 16, 1991, with interest.

It is alleged that the note was made by the defendants in favour of the King On Tong family and was repayable at the end of twelve months. Alternatively, the money is claimed as having been leat by plaintiff or the King Or Tong and the further sum of $1,795 as interest making the total sum involved $4,098..

Ma F. C. Jenkin, instructed by Mr. E. S. C. Brooks of Messrs. Hastings, Dennys and Bowley, appeared for the plaintiff while Mr. Eldon Potter, K.O. and Mr. C. G. Alabaster, K.O., instructed by Mr. F. X. D'Almada, Sea., appeared for plaintiff.

Five Delences. Opening his case, Mr. Jenkin referred to five separate defences

pressed for payment, but at that meeting. Ma Cheung Yu handed to Cheung a letter which was to have

Mr. Jenkin then produced books of account, witness saying that the books were kept in the course of the plaintiff Arm's business. E. Į kept the books himself,

When Mr. Jenkin asked witness to point to an entry in a book of the Kei Mei year, 12th moon, 8th day, witness said that he had not brought the book, but explained that the entry, was carried forward.

Witness said he produced books of the Yum Chut and Shan Yau years. Witness pointed to an entry for the Kang year which referred to the sum of 82,900.

His Lordship pointed out that they had not got anything which showed the entries referred to the defendant firm;" and told the wit- ness to mark the two entries.

Mr. Jenkin Under whose name or under what account do those the defendants' name. entrics appear Ma Pak Leung,

LI

Witness then turned to the Yam

that it meant no one was safe at 45, so great that they spread to which had been raised. The"first been posted. The date of the letter out an item of 89,900 on the 8th.

Nanking. This promised support the Government Wharf across the

of Feng Yu Hsiang has naturally roused great hopes in Canton.

Bund.

While the Central Bank notes are still accepted at approximately face value in the shops the money changers refuse to take them, and many changers have closed their the doors. No bank in Canton will handle any draft business and the

WAS

that

denial

the frm made the note. The second was that the promissory note was not in accordance with Section 83 of the Bills of Exchange Ordinance. The third defence was that the note was not properly stamped when the action was started, while the fourth was a denial that the money was lent. A plea that the action was

Chut year book (1992) and pointed was April 7.

Nothing was done in the matter day of the last moon, explaining of repayment and on December 24, that it was brought forward from letter of demand was another book. That entry was also 1926, a Dennys and Bowley, solicitors for and was the same account. Wit- written by Messrs. Hastings, under the name of Ma Pak Leung the plaintifs. A writ was issuedness referred to an entry on the on January 26, 192, no reply being 18th day of the 5th moon of the received to the letter of demand. Chut year (June 24, 1921 or June On April 22, 1927, leave was given 14, 1929). to the Ma Pak Leung firm to de- Mr, Jankin: Have you an entry money claimed into court.

ed in Hong Kong notes of 81,088 ! Mr. Jenkin concluded his opening-Right, I have an entry here, re- address by dealing with the legal ceived for interest Hong Kong points raised in the defences.

10,000 MAPS ORDERED. The Military Survey Department of the 8th Military Route has been crdered to prepare within next three days 10,000 maps of Kwangtung, Kwangsi and Hunan merchants there are unable to buy barred by the Statute of limitations tend the action on payment of the there that interest had been receiv

from Hong Kong as they cannot get was contained in the last defence. Hong Kong currency except for

The Facts of the Casc. silver which they are unwilling to part with under the circumstances. Presenting the facts of the case, One merchant stated that if the Mr. Jenkin said the King On Tong

estate present state of affairs continued, were members of a large

for military purposes. Thousands of uniforms have been ordered from the local tailors and shops which have been practically idle race the theatre of war shifted to Central China are now doing brisk busi-

*CKS.

SECRET CARGO OF ARMS.

General Li Chung Jen, before he leit for Kwangsi yesterday, gave a very interesting story of the events leading up to the present situation. He said:

Shek to be used for creating trou. le, and it was on account of this that the Wuhan Political Council had expelled General La.

it would in a short time be impos-tong, a business very common sible to purchase foreign goods in among Chinese people for running the city is the stocks held at pre-arrest atatea on which, very sent are by no means large.

FOKIS.

When Mr. Jenkin produced the

The Court their adjourned. When the court resumed after the tiffin adjournment, witness was fur- ther questioned by Mr. Jenkin.

notes $1,068,

Witness said he saw in the defen- Mr. Jenkin: Was that note, dants' book, Yam Chut year, an Exhibit "A" given to you in ex entry of which showed a receipt change fon any other document from Lam King On Tong of He gave me a document in ex- $1,068 which agreed with his (wit change for this,

nez) account, Mr. Jenkin saying that it showed $1,088.

& payment of Witness continued that the entry" was on the payment side and read Fook Kee Firm to pay Lam King On Tong interest, 81,088..

Document or documents For this document he gave me one in exchange for it.

What class of document was that? Also & promissory note has the date was expiring.

Mr. Jenkin said that the Fook Kee was a name that had not yet come out and he knew nothing about it.

Mr. Jenkin: Was that amount of interest, in fact, paid-In fact

4.

this amount was paid to the Chai Ying Company through Fun Hee Ting and in turn was handed to me (witness).

Just a word B3 to how that amount was made up. For what period and upon what sam or sums was that interest paid -This amount of interest was paid of $4,000, one of 32,500 and one of against three accounts, that is one 92,000 at one per cent. interest per month for one year.

Accountant's Evidence,

His Lordship said they had bet accountant to the King On Tong "B" and the Yam Chut book "ur. Cheung Chuk Po said he was ter mark, the selections "B" and and had been in that position for and the translation of the entries often, money was lent out.

many years. He identified the pro-"D" The Ma Pak Leung were well-missory note produced, which a * SICKNESS" AMONG SHOP | known manufacturers and pur Cheung Ya handed to him in Julydefendants Cash payment and Mr. Jenkia then called for the veyors of drugs and Chinese 1929. medicines. As far as counsel could

receipt book," His Lordship re- A further hardship for the mer. foresee, one of the principal issues

marking that that would be Ex- "When General Lu Ti Ping was chants is that many of them have to be fought out was whether or

bibit "F" the head of the Hunan Provincial imported goods from Hong Kong not the Ma Pak Leung was a Government, he was in collusion en drafts which are just about due branch of a firm of that name at with the Communists and was con- and which must be paid in Hong Canton or an independent concern. stantly jeopardizing the interests of Kong notes or silver. The present The form appeared to have its head the people. These are the facts. excharge rate of about £155 office in Fatshan with distilleries Prior to the coup d'etat of the Canton silver to one Hong Kong in Kwaagtung and Macao while Wuhan

Political Council which dollar is the highest ever known in there were altogether twelve ousted. General. · Lu, Brigadier Canton. A large number of the branches including one in Hong General Wang Kwan unearthed a merchants have chosen the line of Kong and three in Canton consignment of 4,000 rifles and simply closing up their premises on 2,000,000 cartridges concealed in some such excuse as the sudden note, Mr. Alabaster made a formal ship passing through Kiukiang from sickness of all their fokis!

objection on the grounds" that the Shanghai. The contraband of war

note did not bear a formal stemp When was Interest Paid? # BANG GOES SAXPENCE!” when the action was commenced. was confiscated and an investigation

You say that that Exhibit was held to discover the offender. The

Mr. Jenkin replied that though it given to you in July, 1921. Why The cashier of the Sun We Res was true the note did not bear the was it dated January 21, 1921 captain stated that the consignment was. for the Provincial Government taurant complains bitterly that he requisito stamp at the time the ac When this was due for payment he of Hunan. The military commander is forced to accept the Central Bank tion was brought that had now had not any interest to pay me. then questioned General Ho King notes. His customers, he says, "eat been rectified. Subject to that, he He only had interest to pay me in who denied any knowledge of the first and pay afterwards, and even would put the note before the 1921. afidir. General Lu Ti Ping said if a man has only eaten 10 cents Court. The note bore the date Jan. His Lordship described this as that the arms and ammunition were worth he will present a $1 bill and 16, 1991, and read as follows:-nonsense and told Mr. Dodd, the for the suppression of bandits. away goes 20 cents change in

Hereby borrow from the King interpreter, to put the question. They were old and worn out rifles silver. Some of the merchants are On Tong the sum of 82,900 in Hong again.. taken from the Nanking arsenal." doing what amounts to discounting Kong banknotes, interest to be Mr. Dodd again put the question he said. But an examination by the Central Bank notes by raising charged at $1 per $100 per month. and witness replied "He had not the Hanko Political-Council-ro all their prices by from 20-per-cept. It is agreed that this sum shall interest to pay mo then but he had wealed that the arms and ammuni- to 30 per centi

be used for 12 months when prin-interest to pay me in 1991, the tion had been secretly sent to General Lu Ti Ping by Chiang Kai GOVERNMENT PROPOSALS. paid. This is proof." The note Putting the question in another

ciple and interest shall be fully re-sixth moon.

Meantime the Government is Ma Pak Leung firm.

wire the chop and signatures of the form Mr. Jenkin asked:On what date had interest fast been paid trying to re-establish the position of their issue. The Department of

on the previous note which was Finance called a meeting of the re-

exchanged-In the sixth moon gard to the 84,000 the interest Witness explained that with re- The money, covered by the note, 1921. "I WARNED MARSHAL LI." presentatives of the different Cham said Mr. Jenkin, was not advanced,

Mr. Jenkin: In the sixth moon. started from the 12th moon, 4th bere of Commerce of Canton on in fact, at the time the note was No, no. He says as against this day (January 12, 1921) for one "Marthal Li was an exponent of Monday in the Treasury, which was made. There had been many pre new note there was an exchange year; 82,000 started on the 28th day reconstruction and peace. When presided over by Mr. Shen, Acting vious advances of money by plain and you handed over an old note of the 12th moon (January 16, he wenn to Shanghai I warned him Commissioner of Finance. Among tiffs to defendants on other notes Prior to the making and handing 1821) for one year and the other of the designs of Chiang Kai Shek those present were Mr. Wong Lung which were cancelled and returned ever this note, Exhibit "A" what started from the 12th moon, 20th and advised him not to proceed to Shang, Manager of the Central to defendants. on July 17, 1921 Nanking. But he did not listen to Bank, and Mr. Chow Ting Pong, when the present note was given in interest to King On Tong-Yes, it year.

was the date of the last payment of day (January 28, 1921) for one the, maintaining that he had con- President of the Canton General exchange. The reason the note was in the sixth moon, 1921.

Mr. Jenkin remarked the evidence secrated himself to the cause of the Chamber of Commerce. The meet bore the date January 18, was be Party and country. fic went to ing decided that each bank and cause the interest on the old loans, 1921 Mr. Dodd:-Yes, it is, and

Mr. Jenkin la the San Yau year was that it was really a payment Nanking and Arrested by money shroff should voluntarily put which were for the same sum, had continued to interpret" He only that he would now hand in the of overdue interest. He continued Chiang just as I expected. He is away and seal up a sum of money been paid up to that date.

paid me the interest in exchange notice convening the meeting of now in prison in Tangshan. The in bank notes equivalent to 30 per

The note was handed to Cheung for this new note forcible detention of Barshal Licent. of their capital, other stores Chak Po, the accountant of the by Chiang Kai Shek has incurred similarly to seal up 10. per cent of plaintiff fr, by Ma Cheung Tut the end of the sixth moon. Up been lost, but he would explain Mr. Jenkin: You say it was paid creditors. It was not the original copy which, unfortunately had the just wrath of every right-mind. their capital. All this must be done and Ma Sau Fong, two brothers of to what date was that interest ed and justice-loving individual." within three days beginning from the Ma family, who were intimate paid That interest was paid for

that the 27th of this month. These notes ly connected with the firm It was that old promissory note up to that

A Meeting of Creditors. MARTIAL LAW IN CANTON. ill remain sealed for a period of handed to the plaintiffs at Canton time.

Mr. Jenkin: Did you at any time three months, during which time After dealing with particulars of Noctural restrictions are strictly the Government will pay an in- other notes, counsel went on to say date previous to this new pro- the Ma Pak Leung in Canton-

But up to what date?-Up to the attend a meeting of creditors, of enforced in certain parts of Canton.terest of 6 per cent. Such a de- that between January 14 and Febr-missory note, that is the 12th moon, Yes, I did. No pedestrian or vehicle is permitilation policy will mean, accoriing uary 13, 1926, a notice was received 7th day (January 15, 1921), ted to pass the front of the 4th to the finance authorities, the with by Cheung Chuk Po indicating that

Did you, prior to doing so, receive Was that the reason why that a notice of the meeting to be held 1 Army Headquarters on the Bund drawal of some $12,000,000 in bank a meeting of creditors of the Ma document was dated the 8th day of Yes, this is the notice." after 9.30 p.m., or along Wai Sun notes from circulation.

Pak Leung firm was to be held the 12th moon 1. Road, where the Central Police According to Mr. Wong, Manager at Canton on April 20, 1924 In

His Lordship Well, as a matter Mr. Potter here objected and of fact it isn't. Station is located, and the Head-of the Bank, $39,000,000 in bank pursuance of that notice. Cheung Mr. Jenkin again put the question quarters of the 8th Military Route, notes bas been issued, of which attended the meeting which was pre as follows:-Although you may the been lost but this was also handed Witness: Yes, that notice bas Both places are guarded by armed $6,000,000 were returned in "ex-sided over by the elder brother, Ma document was handed to you in the sentinola. The number of patrols change for silver during the past Sau Fong. He announced that he sixth moon, why was it dated the to me.. on the streets has also increased few days. The amount of bank had taken over the work of chief 5th day of the 12th moon The addressed to the Tak Cheung. Firm. He agreed that the notice was considerably during the past few notes in circulation in the city is manager from his younger brother, loan he borrowed before expired on one was handed to witness in days, and close watch is being kept about $28,000,000. The total amount Ma Cheng Yu. The position of that date. * on all new comers. Pedestrians and of silver coins in reserve in the the business as a whole was discuss His Lordship On what date? Hong Kong but that had been last. vehicles are often stopped in the Bank, according to Mr. Wong, is ed by the 20 creditors who were Mr. Dodd: On the 18 of January. The wording of the two notices was middle of the street and searched only $15,000,000. It is therefore, present, and they were requested to His Lordship (to witness): alike. for firearms, All Government build. | plain that there are $17,000,000 in stay their hands

that the reason why the note was ings in the city are strictly guarded notes in" circulation with silver re-

'dated January 16 Yes, that is the each night with soldiers.

We

serve.

Many Advances.

Ten days later, Chenng went to see the Ma brothers at Canton and reason.

#i

Mr. Jenkin then proceeded to read the notice.M

(Continued on page 8)..

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