1931-06-26 — Page 11

CHARGES AGAINST LORD KYLSANT.

QUESTION OF RESPONSIBILITY FOR THE STATEMENTS.

HONG KONG DAILY PRESS, FRIDAY, JUNE 26, 1931.

The words Adding to the reserves night (said counsel) be thought to display considerable in- genuity, because it was true that there were more reserves at the end of 1997 than at the end of 1011, but the statement that dividends häd

A TWO MILLION POUNDS PROSPECTUS. in paid in each of the 17 years

What the Lord Mayor of London (Sir Phone Neal) described as "very serious accusationi,” were made against Lord Kylsant, chairman of the Royal Mail Steam Packet Co.,

when ho answered summonses at the Guildhall for publishing false directors reports for 1928 and 1027. Mr. H, J. Morland, a Chartered Accountant, of Messrs Price,

Mr. Pritt: I struggle to be scrupulously fair myself, but oven if it were a fact that any other persons had shared with Lord Kyleant the responsibility of what was being done; Lord Kylsant's position in law would be just the same.

after adding to the reserves was, to

put it no higher, a statement of

the most unfortunate character,

when the years in which anybody. would be most interested would be the years immediately before that prospectus in 1920 and 1927.

Money and Markets

RAUB AUSTRALIAN GOLD THE NIPPON YUSEN

MINING CO..

REPORT FOR MAY.

The Chairman and Directors of

the Raub Australian Gold M. Co., Ltd., Singapore hova-submitted the The words Addingto the following report of the mining reserves" had yet to be reconciled operations, for the four weeks end somehow with the fact that the ring May 23, 1931. serves had been raided in order to provide these very dividende at the

Waterhouse & Co., and formersant) said that Lord Kyleant altorate of half a million sterling

auditor of the company was charged with aiding and abetting. Counsel said it was Mr. Morland, and not his firm, who was the auditor at the material time.

17

Yesterday we gave the first part of the opening statement of the Crown Counsel, Mr. D. N. Pritt, K.C., who alleged that the R. M.S.P. Company reports for 1926 and 1927 were made to show big profits

The Lord Mayor: I quite agree. Sir John Simon (for Lord Ky gether challenged the allegations and was anxious to deal with them; At this point the Court adjourned for lunch.

After the luncheon interval Mr.

Fritt said he proposed to go into a further charge against Lord Kylsant alone..

Sir Patrick Hastings (for Mr. Morland) objected, and said it might cause very serious injustice

fear.

:

"Eiminent People " Names on the Prospectus.

"The real trouble in this caso,” said Mr. Pritt, "is that the old gentleman business was not making money and the old gentleman was

living on the savings of bis prudent

middle age."

2

The Lord Mayor: I see the names of cininent people on these doen-

KAISHA.

LAST HALF YEAR'S RESULTS.

The Management of the local branch of the Nippon Yusen Kaisha has kindly forwarded us the eighty- second report of that company The amount of development com.

which was presented to the sharo

feet, as follows:---- ploted for the period, totals seholders at the half-yearly ordinary general meeting held in Tokyo on Sinking

Friday, May 23, 1931. Driving ..... Crosscutting

74 It ... 333) It. 58 ft.

405) ft.

The tonnage mined and milled for the term, totals 3,101 tons, and the

Total

recovery of fine old per tan, equals 10's dwts, shewing the usual satis factory profit.

14

The development work has shown

whereas, actually, heavy losses were to Mr. Morland, if another chargements. Did they all concur in this widths and values of oro, as being

incurred in the years working. It was alleged that hidden "reserves were drawn upon at Lord Kylsant's instructions.

Continuing his statement. Mr. Pritt next dealt with the question of the responsibility of Lord Kyl- sant. He wna,' Baid Counsel. the real, active manager of the "whole of the IL M.8.P. group, par-, ticularly tho R.M.S.P. Company itself, and it was he who decided and dictated the main form and substance of the report in the state- ment of accounts."

The Lord Mayor: I notice on the R.M.S.P. charter the list of diree tors. Had they no liability, or has it all fallen upon Lord Kylsant?

Mr. Pritt: The duty of managing the company is laid by the charter upon the court of directors.. I think I am in a position to say that this court of directors, so far as they were told at the meeting, knew no more than your lordship did a few hours ago as to the hidden, reserves being touched.

ர்,

The Lord Mayor: Do you mean to suggest that a board of directors took no pains at all to ascertain the correctness of the figures placed

before them? It seems to me an impossible proposition.

Mr. Pritt: My evidence is that the profit and loss accounts in this form were put before the court of direc tors and such questions as they did ask did not lead to the disclosure that this balance was made of transfers from reserves.

The Legal Pozition. "You are bringing a very serious charge against Lord Kylsant, and it seems to me necessary to show that he alone bare the burden of the others who were simply sitting. around the table accepting anything that might be said without com- ment, or reserve," remarked the Lord Mayor.

1

"So far, as any liability is con- cerned, their position does not make any difference," replied Mr. Pritt "The board," he added, "consiste of a number of eminent gentlemen, none of whom, so far as. I know, is a gentleman of great experience

in which he was not concerned was to be spoken to by witnesses at the prospectus ? same time as they were referring to the other case.

"We intend," he said, "to con- test every item of the charge as strongly before you as before any other court."

"I never heard of this new charge until I came into court this morn ing," he remarked.

Mr. Pritt: Although your client asked yesterday whether it would levelled and was told that it would be.

Sir John Simon: I never heard of anything of the kind.

£2,000,000 Prospectus.

nonunl

Mr Pritt: I have no doubt that anybody who sought at that time to Rscertain whether the company was earning these average balances would be referred to the profit and loss accounts I defy any member of the public to have ascertained from any of those documents that the company was not making an annual trading profit.

The Lord Mayor: But the serious thing is to see these names-the Duke of Abercorn, Viscount St.

.

maintained throughout the mine.

The Cyanide Plant has treated 450 tons of low grade concentrates, for a satisfactory profit.

Bukit Koman Area-The tonnage mined and treated from this area, totals 1,282 tons, and development 233 feet.

340 feet Level-Winze sunk to 30

feet, and has been discontinued, as connection will be made froin the 440 feet stipe, now advancing to wards it, and the winze is in high grade ore.

Davids and so on-on these docu-

440 feet Level.-Sth drive ad- ments, which surely would be an inducement to me as meliber of vanced 21 ft., ore $ ft, wide, and the public to say :zö in, a first-value 24 dwts. class concern, "I have £300, "I will put that in it."

Mr. Pritt: It seems a very serious Our evidence is that the Court of Directors were misled in the same way as other people.

which concerns the issue of a prasmatter.

The Lord Mayor allowed the caABE, pectus respecting debenture stock, to proceed, and Mr. Pritt stated:"

We say that this prospectus, which was expressly drafted by Lord Kyleant, is a prospectus which prevailed upon the public to sub scribe £2,000,000 by false state

ments."

The object of the prospectus, it was stated in the document, was to pro- vide addiional capital for the now freehold building of the Royal Mail House and for the general purposes of the company. Royal Mail House cost three-quarters of a million which, Counsel pointed out, was a good deal less than the two million

asked for.

Counsel said that the prospectus stated:

The Lord Mayor: That may be

540 feet Level.-Sth drive extend- cd 11 ft., ore 7 ft. wide; and 'valite 10 dwts.

740 feet Level.-Drive advanced 15 it, ore 7. ft. wide, value 10'2 dwta.

$40 feet: Level-Driven. Of 'ft.,

West Side. now putting underhand stope on.

Mr. Pritt continued: "During the years 1921 to 1027 Lord Krisant knew quite clearly that the company was losing money year, by year and 910 feet Level Rise up 3 It. ore was living on its savings, and that 4 ft. wide. value 10% dwts. North nobody had any right to suggest in Shaft. Development totals 147. ft. June, 1028, that if the company driving and sinking, ore 2 ft., and went on as hefore it would have 6 in values & dwts, and: 11, dwis. any reasonable hope in 1929 or any respectively." Shallow workings, ore subsequent year of meeting its values 4 dwts. liabilities on its debenture stock." Anderson-Lilburne Area. Tons Pritt, to show step by step how tons, and development 29 feet.

"We are in a position," said Mr.nago mined and treated totals 728

Lord Kylsant created this prospec 460 feet Level-Anderson Shaft- tus. In our submission he was Rise in stope up 5 feet, ore 2 it. thoroughly aware of the true posi-wide, value 30 dwts, per ton. tion of the company.

.51

From January 1. 1928, it had bank overdrafts of £413.224. This was shown to Lord Kylsant in the ordinary way, week by week, and it grew until in the middle of May, 1928. it was about £600,000.

Lord Kylsant made the remark to Mr. Cason (one of the company's accountants). We shall have to make a fresh issue.". About the stine time Lord Kylsant instructed one of his secretaries to prepare a draft prospectus of an issue of de bentures. That secretary obtained from the secretary of the company some printa of a prospectus used some years before."

"Although this company in common with other shipping corn panies has suffered from the de- pression in the shipping industry, the audited accounts of the com- pany show that during the past ten years the average balance available including the proâts of the Insurance Company after pro viding for depreciation and in terest on existing stock, has been sufficient to pay interest on the present issue more than five times Over." Mr. Pritt remarked: “That is n, in the actual management of ship-statement intended to convince any ming companies."

reader that this company during the The Lord Mayor. That may be,past ten years has made a trading but if I undertake to act as a direc-profit every year of something like ask for Lord Kylsant to be commit tor of a company it is my business £500.000. We propose to show that [ted for trial. to know about it. I only point this during the seven years preceding the, out to be perfectly fair to Lord issue of the prospectus the company Kylsant. At the moment you are had made every year a heavy trad- throwing the whole of the obligationing loss. That is the essence of the

charge" upon his shoulders.

Made

from

the

Fresh

Fruit.

Three Good Things

For the Hot Weather

in the original embossed bottles

Mr. Pritt added that ho should

The bearing was at this point ad- journed. The Lord Mayor said that n question of hail arose, and Ford Krishnt left the court with his friends.

Rose's

DELICIOUS WHOLESOME REFRESHING

LIME JUICE

Rose's

Rose's

LEMON SQUASH

ORANGE SQUASH

-

Capital paid up: Yen 64,020,000, " Reserve Fund, Insurance, Struo- tural Repair and Other Funds: Yen 37,038,157.

The surplus of earnings after

deducting expenditure for the past half-year amounts to Yen

5,004,144.22.

The following provisions have

Yen

been made:

Depreciation of the fleet

and buildings Insurance fund Ships structural repair

fund

Total

ཝཾ ཝཱཝཱ ཏི

4,540,504.18 70,681.83

1,127,026,79,

5,739,212.73

leaving a balance of Yen 538,368.81,

after taking into consideration the amount, Yen 1.183,437.32, brought forward from the last account.

The Directors now propose that the surplus, Yen 330,368.81) be caF-

ried forward to the next account.

*During the half-year, insurance premiums amounting to Yen 900,178.08 have been paid un- der a separate item.

BALANCE SHEET MARCH 31, 1031.

Assets.

Yon 42,000,000,00

118,125,477.03

launches, barges, etc. 459,807,80 Land and buildings... 17,941,030.20 Ships' stores in stock Public loans and other

securities

Unpaid capitał Reduced book value of

Acet.... Reduced book value of

Cash at banks and in

hand

Sundry debtors

300 feet Level. Lilburne Shaft.Loss for the half-year, North drive extended 17 ft., making total length of 157 ft., of payable, ore developed on this level. Ore in face and stope 5 ft, wide, value 30 dwts. per ton. North wiaze sunk Ø ft, from 960 ft. level, and connected with 300 ft. stope.

053,033.02

PUBLIC. AUCTION.

11

LAMMERTS AUCTIONS

HE Undersigned have received PUBLIC AUCTION.

THE

Instructions from.

MESSRS. SENNET FRERES

HE Undersigned have received THE

Instruations

To

SELL HY

PUBLIC AUCTION

ÓN

FRIDAY AND SATURDAY, JUNE 26 and 27, 1931,

COMMENCING EACH DAY" Ar 10.30. A.M.

AT THEIR STORE," YORK BUILDING

'On Account of Removal to New Premise

THE WHOLE OF THEIR SURPLUS STOCKS

Oomprising --

Gold and Silver Watches (Pocket

Plated Ware, Cups, Cigarette Cases, and Wrist), Jewellery, Silver and Clocke, Fancy and Leather Bags, Porcelain Ware, Out Glass, Lalique Glass, Fancy Goods, etc., etc.

Also

A QUANTITY or SHOP

FITTINGS./

TERMS-CASH ON DELIVERY.

LAMMERT BROS.,

AUCTIONEERS..

PUBLIC AUCTION.

TO SELL BT

PUBLIC AUCTION

ON

FRIDAY, JUNE 26, 1831,

Commencing at 2,80 P.M.

AT THEIR BALES BOSS

4, DODDELL STREET,

A QUANTITY OF. VALUABLE HOUSEHOLD,

FURNITURE

Composting ---

Teak Hatstand, Chester eld Couches and Armchairs, Bookcases, Bide-boards, Folding Sreeen, Diuing Tables, Dining Chairs Dining Filters, Dining Creekery, Glas Waggon, Flower Stande, Ice Dis Ware, Cutlery, Table Fans, etc., etc.

Teak and Iron Bedsteads, Tenk Double and Bingle. Warirodes with Bevelled Mirror Doors, Underwood. Typewriter, Dressing Tables, Marble Top Washstande. Chest of Drawers, Desks, Linen, and Blankets, e, etc. Gramophones and Records, Glasn Cabinets and Rugs, Cabin and Wardrobe Trunks, Porcelain Basing, Flower Pots, Jara, Vases, Books, Table Lamps, Marble Top Hound Table, etc., etc.

and

A QUANTITY OF BLACKWOOD FURNITURE

Including:

Joga Tables, Beds, Cabinets, Chest Armchairs, Tea Poya, Opinm Stools Curio Cabinet, etc., etc.

Also

THE Undersigned have received One SINGER TREADLE SEWING THE

Instructions

MACHINE

TO SELL BY PUBLIC AUCTION

ON

SATURDAY, JUNE 27, COMMERCING ▲ 12,30 PM.

Ar Taxix. SALES ROOM, DUDDELL STREET,

9 BACB RICE BRAN 13.407,432,68 5 BAGH RICE BRAN (Sweeping)

1 BAG NITRATE 07 BODA 2,699,872.48 2 PIECES IRON RAIL 18,340,893.001 SACK FLOUR

€44,068.31

Total'

217,484,576.51

Liabilities.

Yen

Share capital, Insurance fund

Underhand stope ore 6 ft. wide, value 35 dwts. per ton. Stope shaft east, formation 10 ft. wide, value 5 Ships structural re- dwts.

pair fund

Derrick ∙Area. The tonnage Legal reserve fund mined and treated from this are totals 1.091 tons, and development Special reserve........ 913 feet.

200 fent Level-Rising in stope, ft., free gold shewing, but pre nar- row. Driven south 14; ft. ore nar- row value 10 dwts. South workings. driven 89 ft, ore 2 ft. value 17'7 dwta, North works Driven 4 It. ore 2 ft. value 9 dwts.:

"new

Jellin Shaft-Driven 08 it, ore 5'2 dwts. Agas shaft. Driven 31 feet ore 5 ft. value '9 dwts. Shallow workings ore 5 dute.

Construction.-Compressors Cooling Tower complete, and work- ing satisfactorily." Share large transformer, cleaned dried, now oil added, and ready for service. Inter- cooler for compressor, 12 tubes

Debentures Fund for training, protection and en- couragement of sea-

men

Pension fund Sundry creditors ....... Amount brought for- ward from last ac- count

Total

1 BALE FINE RAW SILK 2. FORGES

and

A QUANTITY OF 104,250,000.00 MISCELLANEOUS GOODS, Ero.

9,017,835.94

· 6,430;942.25 | TERMS CASH ON DELIVERY. 18,830,000.00

211,000.00 30,000.000.00

530,176.21 5,058,310.05 7,927,864.74

1,183,437.32

917,484,576.51

changed, and cleaned thoroughly, PUBLIC AUCTION. new piston rings fitted, in LP. and H.P. Cylinders. Compressor House extended and painted. Roasting Plant, now running smoothly, after alternatious, 2,200 feet of 4 10. piping laid, for distribution of air.. from Compressor Houss, General repairs made, and 6 tons, castings. made for plant.

Cyanide Plant.-180 tons of low grade concentrates were treated, for a recovery for 90'40 azs of gold bullion, giving a profitable result.

Dredge-2,750 yards dredged, day shift only, for a return of 24'30 OER of gold bullion, yielding profitable result.

Battery Tonnage.—40 Stamps worked for 27 days.

- Bukit Koman Area 1,283 tons.

Anderson-Lilburne

Area 728 1,091

Derrick Arca

Total

Amályain.-4.010 ars. Smelted Gold

Battery, Cyanidé Plant Dredge

3,101 tone.

1,711'85 oza.

40'40

24'30

Total

1,820.35 oz.

THE Undersigned have received

Instructions

TO SELL BY `PUBLIC AUCTION

ON

MONDAY, JUNE 29, 1931,

COMMENCING AT 5.16 P.M.

AT THEIR SALES ROOM, 4. DUDDELL STREET,

A VALUABLE COLLECTION OF POSTAGE STAMPS

ON VIEW From FRIDAT, the

O 1981.

| TERMS :—Cash on DeliverT.

LAMMERT BROS.

AUCTIONEERS.

LAMMERT BROS., AUCTIONEERS."

PUBLIC AUCTIÓN,

TO SELL Y

ON VIEW From THURSDAY, the

25TH JUNE, 1981.

TERMS-CASH ON DELIVERT.

LAMMERT BROS.,

AUCTIONEERS.

BY ORDER OF THE MORTGAGEE,

PUBLIC AUCTION

OF THE

VALUABLE LEASEHOLD

PROPERTY

Biinate at Kowloon and registered ab the Land Office BE KOWLOON INLAND LOT No. 1445.

PARTICULABE.

Azza:—128,000 Square Foot, BOUNDARIES:-

Northeast-BAN SHAN ROAD.

350 Feet. Southwest MA BANG CHUNG ROAD, 850 Feat Southeast-PAU Chung STREET

760 Feet: Northwest-PAK TAI STREET.

.300 Feet. 'N.B.—PAK TAJ STREET was formerly known na Kowloos Crey Road and was so named in the Crown Lears Flat, The property lies between and near MA TAU WEI ROAD and KOWLOON CITY ROADA

A Large Shed. But other Buildings, THE Undersigned, have received now used by a monthly tenant for an

Instructions

automobile business occupy part of the site.Allowing for a 60ft. Street from AN BHA ROAD to MA HANG CHUNG ROAD, and Two 6 tt scavenging. lanes. the site is capable of subdivision inte. 88 house ziler, 18′ 4′′ x-ra′ ) [6* (end sites 17.81 69.6") Buch deve lopment is given as an example only; same would require removal of the

xisting bulldings.

STIC ALCTION

PUBLIC

ON

MONDAY, JUNE 29, 1931,

·Commencing at 10.30 AM.

AT No. 271, THE PEAK (No. 8, STEWART TERRACE).

A QUANTITY OF VALUABLE HOUSEHOLD

FURNITURE

also

One NORGE ELECTRIC ICE BOX

On View From HUNDAY, the; 28TH JUNE, 1981.

TERMS ---CASH ON DELIVEÉT.

LAMMERT BROS.

AUCTIONEERS.

Term-76 years from 2 st January, 1922, with right of renewal for one further term of 75/ years.

Umowa Rent-9724 Per Annum.

The Property will be sold on

THURSDAY,

THE 621 DAY OF JULY, 1931, AT 3. P.M.

by

MESSRS, LAMMERT. BROS. Auctioneers,

AT THEIR SALES ROOM, No. 4, DUDE STEELT.

Hong Kong

Farther Partianlars, Apply to:

ESRA LAMMERT BROS

4, DpUDALL BIRKET,

Hon Korg : Hong Kong, June 21, 1081.