1929-05-23 — Page 5

WUCHOW TO BE ATTACKED.

„KWÅNGTUNG'S 'NEXT

OBJECTIVE.

CENTRAL BANK CLOSED..

(FROM OUR CHINESE CORRESPONDENT.]

THE HONG KONG DAILY PRESS, THURSDAY, MAY 23, 1929.

CHINESE MILITARY GOVERNMENT WINS THE CHEQUES

NEWS.

CANTONESE TROOPS SAID TO-BE-WINNING."

(Wah Tu Yat Pao.)

According to advices' received" by the Canton Military Headquarters from the front, the Canton troops CANTON, May 9

have re-captured Faknal in the The situation in Canton continues west of Kuntin along the Canton.. to improve and Canton forces are Hankow Railway, two thousand. victorious everywhere. Kwangtung prisoners being taken. The Kwang- is now turning its defensive into si troops retreated to Taitong on offensive, with Wuchow is its first the back of the North River and objective. It is the intention of Lover a thousand of them were General Chen Tani Tong to form a drowned during their hasty cross- junction at this point with General.

Ho Chien and General Fan Shek The Kwangsi troops "were still Shang who have been successful in holding Shekkok and Tsingyun their campaign against Kwangsi. along the North River above Tai Intest reports to hand state that wong when" sericus, fighting broke these Hunanese commanders have out there, and a general attack captured Ping Lok and Chiu Ping was launched upch Tsingyun. By and are proceeding to attack order of Pei Chung Hsi, reinforce

Wuchow from the Ewei Rive:.

KWANGSI LOSSES.

CASE.

JUDGMENT AND COSTS ENTERED AGAINST THE BANK.

YESTERDAY'S LEGAL ARGUMENTS.

$260,000 TO BE RE-CREDITED AND INTEREST PAID!

The Chief Justice (Sir Henry Gollan) pronounced judgment yesterday in the Government versus Hong Kong and Shanghal Banking Corporation care in which the Treasury had sued the Bank for the re-crediting of $285,000 involved in the Carvalho Yao trands. ・・

At the close of legal argument, judgzisnt was entered for the Government with costs. In. terest, as demanded by the declaration, upon the amount at stake, will be paid.

DISPUTED CHEQUES HELD TO BE FORGERIES.

The argument on the question of estoppel was opened by Mr. F. C. Jeukin, for the Hong Kong and Shanghai Banking Corporation, who said that he submitted that if the customer of a banker became

ments were rushed from the West aware of facts which indicated that River to Shekkok,

a forgery was afoot, or that there was a probability or possibility that a forgery would be committed, it was his duty. at least, to communi- cate these facts to the banker.

Another message states that the Kwangsi troops have been repulsed beyond Lopao on the bank of the North River and Yuentam on the North River.

Customer'i Liability. Counsel said these facts should be communicated with reasonable des- patch in order to safeguard the banker. He would also put it to. the Court that if the customer de-

The local Military Headquarters claim that about one half of the total number of Kwangsi troops in vading Kwangtung have been either killed in action or taken prisoners.

Severe Ocunter-Attack. Prisoners of war brought to Canton have been turned over to the Police!

Another telegram states that the Station for custody. All the city

Kwangsi troops launched a severe gaols are so overcrowded with these attack upon Pakuai, attempting to Kwangsi captives that the Police capture Sunkai. The 6ghting last Commissioner bad to use the Poed over 13 hours when their amputed, quite properly, the looking munition became exhausted. Being after the checking and safe custody atunked by the Canton troops of cheque books to a deputy, that from the east and west, they re-deputy was required to exercise treated by two directions toward with regard to those matters Tsingyun and the West River, Their retreat was intercepted by a number of aeroplanes and gun- boats, which beside bombing them, destroyed the bridges.

Wa Theatre af' a prison.

"The Military Headquarters claim that General Lai Woon Im, one of the big leaders of the Kwangsi troops invading Kwangtang, was killed in action. yesterday morning near Lo Puo. General Lui was a subordinate of General Pei Chung Hai and is well-known in Canton, having been in charge of the pro- tection of part of the East River districts prior to the inter-Kwang war. "It is also reported that General Pei Chung Hsi, one of the "Big Four of the Kwangai Clique, has been wounded in the arm.

THE DREADED "IRON-

SIDES."

Finally, over a thousand prison ers and more than two thousand rifles were captured by the Canton troops.

An fäevitable Conclusion. He would not have been satisfied with the mere belief that "possibly his eyes had misled him and that he had received the book in that state from the bank. He must have made some inquiry,

The most rudimentary inquiry of the bank would have disclosed the fact that those cheques had been the inevitable conclusion and there extracted. He, must have" come.to must have been in his mind obvious grounds for suspicion of a forgery There was no other conclusion to which he could have come.

of the book and he did not make Mr. Mesger did not see the cover the discovery that Teang On Wing made for the reason that he had deputed duties to Tsang.

Mr. Potter's Reply.

that his case was covered by over- Mr. Potter submitted in reply

whelming authority. In fact, there was Messer or Mr. Black to supervise no duty devolving on Mr.

the office in any particular way for the purpose of ascertaining whether | cheque had been extracted, or pre- venting its extraction or alteration of the cover, and consequently there was no negligence at all. There was no negligence in the transaction

ate cause which led the Bank to itself, nor neglience of the approxim

debit the Government with the three

amount.

from Mr. Messer's evidence as a Mr. Jenkin said they would find

The findings of the jury, Mr. whole, that the position was that Potter continued, clearly indicated had been a system of inter-com- that he received the cheque-book for 99 years to his knowledge there that Tsang believed at the time) munication between the Bank and with only 570 cheques. Although it the Treasury Department, the underlying motive being the sale. had been pointed out that Mr. guarding of both parties against Messer now looks up the cheque- ing" their mutual interests, Mr. books, counsel would absolutely Messer had himself said if he had deny that it is the duty of Mr. nade the discovery he would have Messer to do so. It is usual to re- acted at once."

port the loss of a cheque-book, but certainly no legal duty,

precisely the same amount of prud-fraud, for the purpose of protect ence and diligence as the customer himself should exercise.

He would also submit that the customer could not escape liability of safeguarding a bank by deputing that class of duty to a subordinate, and taking no measures to see that the duties which were deputed were A number of officers of the Can-in fuct being carried out. to troops were also killed during the action. The Kwangsi prisoners alleged they were, defeated on ac- count of the fact that they had eaten nothing for two days and that their ammunition Wad ex

While the situation is assuming a much brighter aspect, Canton is bausted. shocked to learn to-day from & despatch from Nanking that Chang Fat Fui, the notorious lender of the

HUNANESE ACTIVITIES.

Forgery WAS the very thing against which a customer was bound to take reasonable precautions, as laid down in a judgment by Lord the London Joint Stock Bank and Chancellor Findlay in the case of

McMillan.

Banker's Risks.

A banker undertook the ordinary risks of forgery, but if circum- stances arose in which those risks changed to extra-ordinary ones in

"Ironsides," who had given Canton (Industrial and Commercial Daily that the customer knew there was

so much trouble a couple of years ago, has been formally re-instated

Prens.)

Since the cecupation of Eweilin, by Marshal Chiang Kai Shek to the the capital of Kwangsi, the 'Hunaa. post of commander of the 4th{ Division. The Ironsides are at ese troops under General Ho Chien present in Hankow and are said to have advanced toward Liuchow loyal to Chiang Kai Shek and the and captured some minor positiona Central Government. Much appre- hension is expressed lest they should be sent back to Canton.

They will be joined by Hau Ke Haang's troops, who are under the command of General Ho Chien to attack Wuchow.

CENTRAL" BANK CLOSES.

The Central Bank of China for mally closed its doors to business to-day. In a notice put up in front of the premises it states that the Bank will not be re-opened for business again until after the mili

Conficting Rumours. tary operations are over, or until such time as thought safe and ex- The Kwangsi troops are desper pedient for the resumption. The ately fighting for the capture of

Conton. consensus of opinion in business

à possibility of forgery, then the customer was not permitted to re- main silent.

Tsang's Silence.

Judge's Observations.

Mr. Jenkin asked his Lordship

Dealing with the question of neg- to consider whether or not by the ligence and in course of which de- Tsang On Wing could have obtain were quoted, Mr. Potter said there exercise of reasonable diligence cisions given by, the House of Lords ed knowledge of the affair with re- Tsang to count the cheques every was no obligation on the part of gard to the cheque-book. All other facts being established, the silence night. Beyond the drawing of the the action of the Bank in honouring part of the customer to take pre was not only an inducing cause to cheque, there was no duty on the the cheques, but, in fact, actually cautions to prevent fargery. Care induced them to honour the cheques.lessness or negligence on the part Mr. Messer could

Counsel further submitted that of the customer cannot be put for

taken, in law. ward as justification by the Bank as having full knowledge of the for accepting a forged cheque. On incts which were such as to war the question of largory, the findings rant only one conclusion, that for- of the jury were conclusive. gery was a possibility. It was therefore his bounden duty to act, and his failure to do so was neglig- Lordship said that for many years In the course of his judgment, his There had been a course of deal- tion there was a relationship be ence,

prior to the concurrences in ques ing between the Treasury and the tween the plaintiff (the Attorney- Bank for advising anything. ir General representing the Govern regular or unusual in connection ment) and the defendants (Hong with cheques or cheque-books. In Kong and Shanghai Bank). It was the case of Tsang, by the exercise clear that the relationship was one of reasonable care and diligence he of debtor and creditor, with the could have, found out the true post-hability on the Back to honour tion in regard to the cheque-books: cheques drawn on behalf of the

When the Cheques Wera Isamed. Government: In a transaction as between cus- tomer and Bank, one incident must be that the customer parts with the

।- ‚』 !

attitude of the parties in the pro- His Lordship dealt with the ceedings. The jury had found the

The duty of safeguarding in this case also arose by the course of dealings which had extended, on the evidence, for at least 20 years.

Counsel also quoted from Appeal that districts. Meanwhile, the Cases, 1990, Scholefield and the pro-Nanking troops under Fan Shib

Earl of Lonsbury, and also from Seng, arrived in Chaoping on the Halsbury who said "Where a bank Kwei River and declared they is by law or by special arrangement would capture Wuchow within ausder duty to a customer, the cus- cheque or issues it. Mr. Jenkin cheques to be forgeries. Then the few days.

temer owes it to the bank to take contended that Mr. Measer issued question of estoppel arose, and his reasonable precautions and where the cheques when they left his Lordship decided to leave over the the" customer's negligence causes a possession. When Mr. Messer came important points for breach the customer may be stop-to know of the issue of the cheques later. Certain questions bearing on discussion ped."

at least on December 2 with the such points were submitted to the Counsel said that if a discovery knowledge that they were going to jury and they had answered them. was made of a class made in the the Bank, then he came into the A second point raised by the present case, which pointed to only transaction. If Mr. Messer had defence was that, assuming the one conclusion, that a forgery was given 30 cheques to an absolute cheques to be forgeries, still by circles is that the Bank could not The Canton Military Headquar templation of the parties to com- one of those 30 cheques, then be the part of the Government, they afoot, it must have been in the con- stranger, and if forgery ensued on reason of the negligent conduct on do any otherwise, as all the silver ters have received a telegraphic coins have been taken out and re-communication to the effect that municate that fact to the bank. could not say he was no party to were estopped in their claim. In moved to Hong Kong. The quota- the two divisions under La Ming unable to find a case where the cir

Mr. Jenkin said that he had been the transaction,

In closing, Mr. Jenkin asked his were abstracted from the ebeque- December, 1827, certain cheques : tion of the Central Bank of China Shui and Yang Teng Hai, which cumstances were exactly similar to Lordship's consideration of notes for to-day is 61 cents to the were dispatched by the Central those in the present case, but said following questions as to whether:

the books supplied by the defendants Canton silver dollar, showing a Government to help Kwangtung, there were cases where the prin-

for use by the Government, con slight increase over the exchange Canton shortly.

have left Shanghai and are dug in ciples laid down should apply.

(1) There was a course of deal tinned his Lordship. It was clear rate of yesterday.

Log;

from the authorities that there was The Only Prudent Course,

(2) With reasonable diligence no duty on the part of the customer Tsang and Cheung or either to keep cheque-books locked up or of them should have known of in bis own custody. the wrongful extraction of the cheques from the book) (3) Whether it was Tsang's or Chenng's duty to have fully reported his or their discovery as to firstly Exhibit "E" and second Exhibit F" what ever their belief;

THOSE NANKING TROOPS! P.O. EMPLOYEE ARRESTED

The Wah Ta Yat Pao learns EXTRADITION PROCEEDINGS. that six vessels londed with the

Grat batch of Nanking troops are die to arrive in Canton to-day o

Jose Antonio Mariano de Sousa, to-morrow. The three Nanking the Portuguese youth who is want- gunboats, the Haiyung, Kiangyuen ed by the local Police for the and Tautai moored in Hong Kong alleged fraudulent alteration of a left the Harbour to greet them a local Post Office document, has been the troops will not call at Hong arrested by the Police Kong

Jourabaya.

KWANGSI FORCES ROUTED,

COMMUNIQUE FROM CANTON.

DISORDERLY RETREAT.

İTREGUDH ALUTER'S AGENCY.]

in

He is now in custody in the Dutch East Indies.pending extra dition. proceedings for his return to Hong Kong.

'CROWN- LAND, ŠÁLE.

In the present case there was in- formation available to Mr. Messer

and Mr. Black by which, if attention have been discovered in an early bad been paid to it, the fraud might

etage. He submitted that the risk presented with forged signatures of a blank cheque being stolen and

willing to take, but when the theft was doe which a bank might be.

ordinary one and if numbers of was known the risk was not an cheques were stolen the risk became more imminent and the customer would not be entitled to say that the risk was an ordinary one.

It could not be denied that if Mr. Messer or Mr. Black had seen, what Tsang had seen on the first cheque book that they would have instituted some inquiry. That would be the only possible conclusion be- At the Crown Lands Office Fester.cause it would be the only prudent day, an area of land at the junc course for them to have taken. tion of Aplin Street and Wong For eight years previously, cheque NANKING, May 22, Chak Street was sold to Mr. Wong books had never been sent except A communique from Canton Yiu Tong, acting on behalf of in multiples of a hundred and they states that Shinhing has capita Messrs. Chan Lung Piu and Chan had been sent in books of 600 at a lated to Ewangtung troops, and Lung Lan for the sum of 813,817. time, In view of further circum- the enemy are retreating in a most The land covers an area of 0,078 stances that the cheque books were. disorderly manner to Kwangai. square feet with an annual rental always checked, and that a receipt.

All danger to Canton has bee of 882

was duly acknowledged if removed. It is added the theThere was no bidding and the Messer had seen what fang had Fukien forces have driven out the lot was knocked down to the pur seen it was clear that he would have pro-Kwangei troops from Swatow. chisar at the upset price,

made some inquiry.

Dealing with the question of duty arising out of the relationship, be- tween the Bank and customer, his Lordship held there was no definite authority on the poidt. Assuming that there was, his Lordship was satisfied that there was no duty owing by the Treasury officials to (4) Whether it was Tsang's or the Bank. Io can be said that any Cheung's duty if they had as negligence on the part of the Gov certained the true state of ernment was in the transaction it. affairs-as to firstly Exhibit sell. Negligence must be the ap "E" and secondly Exhibit proximate cause of the loss by the "F" to have reported their Bank. The forgety of these cheques, knowledge;

his Lordship continued, was the re- (8) Whether it was Mr. Messer's ault of cleverness which led the and Mr. Black's duty to have Bank to mistake the signatures to communicated with the Bank be genuine...

had they in any way known of

the alteration of the cover and His Lordship concluded that he the absence of 30 cheques or had come to the conclusion" that the presence of 870 cheques the declaration asked for should be only;

made, that the Government

(6) Whether non-communication entitled to be credited with, the

to the Bank tended to induce amounts of the three cheques, to and in fact did induce the gether with interest at the cus Bank to honour the three tomary or contractual rate of 2 per cheques;

cent. per annum from the date the (7) Whether it was in the con- cheques were debited to the Govern emplation of the parties that ment account, till payment or judg- they should either of them ment take reasonable care and pre- "Judgment would", therefore - be| cautions to safeguard the in-entered for plaintiffs under both | terest of each other.

heads of their claim, and costs,

W. POWELL, Ltd.

10, Ice House Street.

*

We have received a new stock of Travelling Requisites including:

Salt Cases

Fitted Suit Cases Fibre and Leather Attache Cases Kit and Brief

Bags Writing Cases Holdalls Linen Bags Rug Straps

Key Purses, Pocket Wallets, Hair and Clothes Brushes, Collar and Handkerchief Boxes, Pipes, etc.

We allow 10% Discount for Cash.

Columbia Now process RECORDS

A New

Standard of Realism

SIR HENRY J. WOOD

AND

NEW QUEEN'S BA

WILLIAM TELL

ORCHESTRA

OVERTURE

5058 PART 1-2 DAWN... ...THE STORM. 6059-PART 3-4 THE CALM...FINALE.

The ANDERSON MUSIC Co., Ltd.

LANE, CRAWFORD, LTD.

FOR

TABLEWARE OF QUALITY

EP.N.S.. HOT TOAST DISHES. -

FROM $15.00

LESS

10%

FOR CASH.

THE QUALITY OF THESE GOODS 19

GUARANTEED OF THE HIGHEST.

THE PRICES ARE MORE

THAN REASONABLE,

EP.N.S. ASPARAGUS DISHERS-

$45.00

E.P.F.S. CONDIMENT SETS. $10.50 SET OF 3, INCLUDING SPOONE.

SERVICE WITH QUALITY.

GROUND FLOOR.

JEWELLERY

SILVER DEPT.