1929-12-18 — Page 7

CANTON'S STEADY

ADVANCE..."

THE WEST RIVER DRIVE,

MANY KWANGSI MEN CAPTURED.

[FROM OUR OWN CORRESPONDENT.]

CANTON, December 17. Wing

On, Kwangli, Houlik, Szewui and other strategic points above Samshui have now been re- captured by the Cantonese troops. Over 2,000 Kwangsi men have been taken prisoners daring the last two days. These men, in addition to

THE HONG KONG DAILY PRESS, WEDNESDAY, DECEMBER 18, 1929.

CORRESPONDENCE.

CATHEDRAL SERVICES:

A REJOINDER.

[TO THE EDITOR OF THE "HONG KONG DAILY PRESS.']

Si-As a regular attendant at the Cathedral tor the past three years I have noticed none of the disorganisation". "which has so deeply. feaded "Paul Vlaine

he changes are such as wera to be expected when two youngish men took over what one elderly man had een doing, and doing number of extremely well, for years. These changes are all in accord with what is being done at Home, and the friendly, Homeland atmosphere of the Cathedral re- large quantities of arms and sup-mains what it was in Mr. Copley plies, are being brought back to Moyle's time.

Canton-Samsui Canton by the Railway. The number of Cantonese casualties is also reported to be furge. During the fighting two planes were brought, down by the Kwangsi troops.

The Cantonese troops entered Shiuhing yesterday without resist

Cave.

The Kwangsi troops are now withdrawing to Dosing and Tak- hing, farther up the river, but it is anticipated that they will move unt before the arrival of Admiral Chen Chak's flotilla.

.

CASE AGAINST MR. INSTONE BREWER. ROUND THE COURTS.

VERBAL DUEL BETWEEN ACCOUNTANT AND DEFENDING SOLICITOR.

" INVESTMENTS" AND "SECURITIES"

DEFINED.

The case against Mr. Noel Instone Brewer who is charged under the Perjury and Larceny Ordinance in connection with the affairs of the Instone Banking Corporation was continued at Cen- tral Magistracy yesterday before Mr., A. W. G. H. Grantham.

Mr H. Somerset Fitzroy, Assistant Attorney General, prose- cuted and the defendant was represented by Mr. E. Davidson,

Mr. S. H. Ross, chartered accountant, who had given evidence at earlier hearings was further cross-examined by Mr. Davidson.

THE COLLATERAL SECURITIES.

The Dean is not infallible, and

mistake when Mr. Davidson had, at former sit- it was certainly a criticising Hymns A. and M. to particularise, because any hymn istings taken witness over the assets liable to have special and sacred associations. But there are extra ordinarily fecble hymns in "A. and SI" and in point of fact many are never sung. The Supplementary Hymn book, again, doca include tome rather second rate, stuff, but it gives us Blake's "Jerusalem " to Parry's setting. Kipling's Reces fine hymes by aional, and very Chesterton and Buayan, to mention

a few...

Raving been brought up in a Vicarage the tone of Paul Vlaine's letter strikes a note very familiar to the writer. It is of the kind that we used to

shown in the balance sheet... Yes- terday, he began by dealing with collateral securities. He asked if it was not correct that loans under this head were secured by share holders in bonds of enil. Mr. Ross agreed.

These were definité promises to piny various sums of money by the shareholders 7-Yes.

+

Won't you go a little further. Subcribed capital means capital which has been applied for-You are again going into law. From my point of view as an auditor and layman, I think $1,133,000 of the capital, whatever the law." money is not issued and subscribed

If the applications were received, the statement "Issued and Sub- scribed Capital," is not false I don't agree.

$500 FINE FOR HAVING HEROIN "PILLS.

The mistress of a junk who was charged with posssession of 20 tina containing 900,000 heroin pills, pleaded guilty before Mr. T. S. Whyte Smith at Kowloon Magis- tracy yesterday and was fined $300 with the alternative of three months' hard labour.

Mr. H. A. Taylor of the Imports and Exports' Offer told the Magis trate that any pill containing heroin constituted dangerous drug. The pills seized not only contained heroin but also strych- hine which in itself was very dan- gerous. The tins were worth about $40 each.

It was stated that the seizure was one of the largest made for a long time. It was earried out by Detective Sergeant Fitches who Yaumati Typhoon Shelter and found the boarded the junk in heroin carefully concealed.

WINE SMUGGLING.

A cook and storekeeper employed on board the 5.5. Kweichow were for before, Mr. Whyte Smith amuggling 19 and 192 bottles of Tientsin wine respectively. Detec tive Sergeant Humphreys, who pro- What do you understand by sub-secuted, told the Magistrate that scribed capital as opposed to issued the bottles were very cleverly hid

capital capital-Subscribed

isden in various parts of the ship. capital which has been duly applied Unfortunately the police failed to for, application money received find 6-10 bottles which had been hidden under the cargo and had probably been dumped in the har bour to avoid seizure. The wine, continued Sergeant Humphreys. was bought in Tientsin at 40 cents

Assuming they were valid deeds, they were in fact assets No. ".

Why not Because they were not and shares duly alloted. paste into a

realisable.

* specimen book. All clergymen should keep such a specimen book. it takes the venom out of abusive lettere and makes them a vouree of collector's pride, besides afford- ing ainusement to visitors.

We all knew that "regular at tendant," who comes as long as he gets his own way and is petted and given into like a spoilt child. But there is the inevitable day when something upsets him and he seizes the opportunity to go off in n. huff and join the ranks of those whom, the parson has driven from the church,' and who form the nucleus of the opposition,

Is not that a very good descrip- Assuming they were valid deeds,tion of issued capital also -Yes." they were assets 1-If they were worth nothing they could not be

assets.

I regret Mr. Ross, I have not assumed they were bad deeds and you have no right to assume that

have every right to assume it since I am investigating the case.

If they are valid debts, they are assets No.

They are described as collateral security loans 7-Yes.

Will you take it from me that collateral security

just

bottle and sold for double, the price in Hong Kong, where it had

good market.

The Instone Trading Company. Let us take the item of 3450,631.80 under Stock, Shares and other In- vestments. You told us that this consisted of $415,000, fully paid up

The cook was fined 850 cr four shares of the Instone Trading Com-weeks hard labour and the store pany -Yen.

keeper, who had 192 bottles, was

For these, fully paid up shares fined 8250 or four months · härd of the bank had been issued to the labour. Instone Trading Company --The banks showed that these shares hadA TREE CUTTING QUESTION. been transferred by Mrs. Brewer.

If the shares had been shown on

General Chen Trai Tong, who is personally directing the expedition, predicts that Wuchow will be cap- tured in the course of the next few days and that the anti-Kwangsi war will be over inside of two weeks. A large number of junks, steam launches and other crafts are being commandeered in Canton for the transportation of troops up the West River. River services between Canton and the outlying districts are almost suspended again.

Two divisions of troops, the 60th

the balance sheet as Instone Trad security, or do you suggest it meansing Company's shares at par, you -under Major-General Tsoi Ting Kai,

something else. I understand it would have no quarrel with it 1-1 and the 61st under Major General Paul Vlaine's niruee of the scr.

means auditional security.

think I would. In fact, I am sure Every one of these deeds was

I should. Chiang Kwang Naal, are taking the mons stands self-condemned, be-

cause, on his showing, he hasn't secured by lien on the share- field. Some of these troops aro heard them. As one whoec ere-holders shares -In my opinion already in Shiühing and Kwangsi, dentials as a critic of sermons are that is nut security.

probably better, and certainly more and the rest are leaving Canton.

up-to-date than Paul Vlaine's, the HEAVY NANKING LOSSES writer says without hesitation that

What is a Secured Loan? the standard of preaching in St.

Mr. Davidson referring to the General Ho Ying Chien has left John's Cathedral is extremely high, Canton for Hong Kong on his way and excellently adapted to the con- form of application asked witness gregations largely of men, and back to Nanking to participate in especially Service men, who all He then asked: "If that is

affairs. As regards investments the war against General Tang Seng the Cathedral every Sunday even-security are these secured loans 1

You are asking me to accept your

there is no excuse for putting them Chi. He was expected to leave the

It might be as well en paisant version of the law and then you go British Colony this morning for

to attempt a reply to the query of on to ask my opinion. I am afraid at par if they are not worth it. They should be put in at their real I cannot Shanghai by the 8.8. President your correspondent what 19

You cannot say if that is a secur-value or else have a footnote in the Lincoln. Numerous Nanking, troops Christianity Christianity ie the have also felt Canton for the North. teaching given by Christ in Hised loan can't say anything balance sheet as to what the real

words and actions, as recorded in under the circumstances.

If a lien on the shares is a

ed loans You.. . No, I cannot

shares is a secured loan.

in

."

Could you suggest as an auditor if it had been so stated—that that could be called a false statement

I am not asking your opinion!If the directors knew that the Well, you said it was a security.

to assume that it was a security.

shares were not worth par it would be a false statement.

"Although actually it would be literally and perfectly true It

would be a false statement if they

were not worth par. The balance sheet must show the true state of

value is.

Unless you make some alteration

it in the balance sheet as it is in the books you will have to treat shown here 1-No. You can leave

These Northern troops, particularly the four gospels Thinkere of all the 30th Division under Tan Tan types are coming to agree that the security in law, are not these secur Yuen,, were very badly cut up by application of Christ's teaching on the Ironsides." The number of social, economic and spiritual mat. agree that a loan on the company the value in the books, and leave

Nanking troops killed was reported to have far exceeded that of the "Ironsides." A Red Cross worker,

When a Chinese villager was charged with possession of 31 catties of pine branches, which were sus- posted to be from the Government Plantation, the defendant pro- duced a permit from the Forestry Department to his village for the inhabitants to Lut the trees ia return for a fee of 830. The per- mit, however, had expired on June,

1929.

יד

The Magistrata said that it was The permit difficult question,

was not issued individually but to the village, and whether the money had been paid or not, the defendant was adjourned for

was not to know.

The case enquiry.

DANGEROUS. DRIVING:

In imposing a fine of 830 (or six weeks' hard labour) on the driver of a public car, Mr. E. W. Hamil- Lon abserved that these drivers were getting worse and worse every day. The defendant is stated to have car driven by ters is the solution, and the only

Mr. Grantham: Supposing it is it in the balance sheet also as long cut in front of

31rs. Barker in Murray Road on solution, of the world's troubles.

the afternoon of December 6. Mrs. Such stout agnostics as H. G. Wells the law that a lien on the Com-as you state, the true value in a

You mean from a moral point of Barker had just turned into Mur and G. B. Shaw (even though they pany's sharea is a valid security, footnote, or something similar.

would it then become a secured view? You could not have shown ray Road from Chater Road and cannot admit that Christ is in a

jonn 1-Yea who has just returned from the category entirely above themselves),

ese shares on the balance sheet in so doing had slowed down to Mr. Davidson: Then on that as- Northern sector, told the writer agree as to the practical value of sumption this statement, (regarding in any other way-Yes, certainly allow a lorry to get in front of her.

you could.

As the was about to accelerate, the 4,000 dead wearing His teaching, and Shaw's lateet the collateral securities) is a cor- some

Well, how 1-You should have defendant's car cut in from the book is merely an elaborate sermon similar uniform to those worn by on the text "To each man he gave wording is concerned, that is cor footnote.

rect statement?-As far as the done as I say. You must put a right side.

The defendant's record showed the Nanking regulars were picked a penny."

reet, but in view of the fact that

It would be correct enough as that he had a previous conviction up and buried.

the assets were worth nothing, it was still a mistake in the balance long as you explain it in a foot for dangerous driving. sheet. When I say it is worth no thing, I mean it is worth nothing like the amount it is stated to be worth.

that

PITY THE MOTOR-OWNER!

"

The Church, in the writer's opinion, makes an error in placing St. Paul, the Old Testament and Church tradition on an equality But 'Bus services in Canton have not with Christ's own teaching.

to get back to Chriet's teaching resumed yet, as a large number of lorries are still out of order on the us against the Bible from which northern and eastern front. Many every form of fad and persecution, of these commandeered vehicles from Mormonism to witchhunting, were either purposely knocked out can be justified-would require big of commission or telescoped by the ger reforms than the Dean of Hong retreating Nanking troops under Kong has attempted; and we know

B.B.

Hong Kong, Dec. 17.

That is your opinion -The facts have proved it to be so.

How do you prove the facts-It has not been possible to collect this money.

Since the Company went into Is it not a fact that the Official Receiver collected money against theso No, as far as I know, no money has been collected against

|

note?—Yes.

LI

Goodwill Not an Investment. The balance of that item is $68,000.odd which represents the value of a purchase of a right to issue certain honds -Yes.

You have stated that an item like goodwill was not an invest ment --No.

I put it to you that it is a matter

Re-examination.

Fitzroy, Re-examined by Mr. witness said that from what he could see from the applications lor shares, a loan was made by the bank to the applicant first, and the money was then applied to the shares. The money was not paid of plain language, that anything of by the potential shareholder jato this kind is an investment 3-1 say

the bank and then lent to him goodwill" should not appear in again. The process was just the the balance sheet.

reverse. The cash position of the But you will agree with me that Company, however, was such, that an item of this kind can be describ-ther could never have made these To go back to the original ques-ed as an investment 1-Tes, it is an loans. tion. This statement, on the same investment. assumption, is verbally correct -- Yes.

Tan Tuo Yuen when the Iron- who would be found in the fore-liquidation 7-Yes. sides

were within five miles of the front of the opposition.-Yours, northern suburb of the city. The cte., automobile belonging to the Cunton Water Works Company was thrown down n hill, some 30 feet below the highway. However, these auto- mobiles and buses are being pulled up from the wayside and dragged back to Canton.

TAOIST'S LONG WALK. ARRIVES DESTITUTE IN

Some dozen or two large 'buses,

HONG KONG. most of them belonging to the Municipal Government, have already been brought back to Canton and are Inquiries made by the authorities now parked in front of the Central into the ease of a destitute Tavist Police Station. These, which were pilgrim who was arrested recently; were almost brand new.n week ago, revealed the fact that he had are now dusty and worn out. All arrived in the Calony following a the bus companies and automobile walk of 2,000 miles from Szechuen. dealers in Canton lost heavily. One bus company anid to the writer that every one of its car was smash ed up.. Bat it is not known if the Government will reimburse the losers!

The man stated that he had made the long journey from his home to Canton, in order to worship, ata certain shrine there, and further that he had made the journey successfully through the magic in- fluence of a richly carved staff, surmounted with an image of a Bhuddha.

"THE GEISHA."

Besides his wand he had brought MATINEE TO BE BROADCAST. from Szechuen, several packets of medicine which he intended to sell This afternoon's performance of to get a passage to Shanghai, from "The Geisha is to be broadcast which port he intended to make the from the Theatre Royal on the return journey. It was while vend- wave lengths 355 metres and 40ing this medicine that he came into

metres, simultaneously.

the hands of the Police.

these loans.

On the other side of the balance sheet, these sums are included in the paid up capital-Yes.

They had to be included in the asset side in order to balance the balance sheet 1-No.

You say that a balance sheet does

A thing like that can be described not require an expert to prepare as an investment 17-You mean in a it -It requires a man with some balance sheet 7

experience, that is anyoze trained In or out of a balance sheet 7-in book-keeping.

We went through a variety of things. Let us look at the word collateral security." What do you understand by these words 1-I understand collateral security to mean additional security.

I am not concerned with how you The object of a balance sheet is describe it elsewhere.

to show accurately the financial I am not asking you what you position of the company at the are concerned with. It is what I time ?--Yes. Why not-It is not necessary to and my client are concerned with. include anything on the balance The point is, a thing like this can sheet to make it balance. From be described is an investment? your point of view they have credit-Yes, but not in a balance sheet. ed capital and debited loans and Regarding Mortgage and Long therefore they balance.

Term Loans, is thore not some "Issued and Subscribed Capital," mortgage on property of the In- stone Banking Corporation 7-Yes, Regarding issued and subscribed I think there is, but at the time capital, however wrong it might of the balance sheet, the mortgage have been to include it in the had not been granted... balance sheet, it is correctly des Are you prepared to swear that cribed there? The issued and sub- the mortgage was taken out after ral security. scribed capital is $2,013,230 -No. the balance sheet1

Additional to what?-Well, as suming a person is granted a loin, and he gives a promissory note. He might also give some shares of another company and I should re- gard shares so deposited as collate"

His own personal note to repay: The issued capital was 81,700,000 Mr. Fitzroy interrupting, said could that possibly be called col odd.

that the mortgage would in due lateral security --As I understand I am asking you to assume that course be produced,

it, no. After a few other questions, Mr. I think you have said "that you the application for shares were good applications. If that is so, Davidson asked: "It has been ad- have found nothing which could then it is not false to say that the mitted by Mr. Fitzroy that nobody have been termed collateral secu- This is being done largely for the It is understood that the authori-issued and subscribed capital was has been defaulted by this balancerity.1-There was nothing..

22,013,260 1-IF

applications sheet. You would know if there You have described a number of benefit of the Hospitals. Everyone ties have decided that the man was

were good and the application was anything in the books to show things as wrong. Would you des in the Colony likes to see the telling the truth and while commit- Philharmonic productions, and this ting him to the care of the Tung money had beert received, I should that Mr. Brower ever made a cent cribe them as merely matters of

then tuke it that this statement out of the Company -No Ho book-keeping --No, they were not. pwho are sick will be able-Wah Hospital, have made him a

kedai Suhusika fanitat never made event angst from his The case wggviourned-unti to hear the Geisha,

Baners Brune for

salary.. was correct. Northern port. well worth listening to.

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