1934-05-01 — Page 7

HONG KONG DAILY PRESS, TUESDAY, MAY 1, 1934.

To Share Transaction Sequel To

BROKER SUES MR. WOO HAY TONG'S ESTATE FOR $81,188

Deal In Five Thousand.

"Watson's'

Considerable interest is being shown by local brokers in a ease which commenced before the Chief Justice, His Honour Mr. A. D. A. MacGregor at the Supreme Court yesterday in which Mr. N. V. A. Croucher, a local sharebroker is suing the executors of the estate of the late Mr. Woo Hay Tong for $81,188.93, money alleged to be due for shares purchased to Mr. Woo a few days prior to his death.

་

Mr. H. G. Sheldon, instructed by Mr. Edgar Davidson of Messrs. Hastings & Co., s for the plaintiff, while the defendants (Messrs. S. T. Butlin and H. R. Forsyth) are represented by Messrs. Eldon Potter, F. C. Jenkin, and H. C. Macnamara, in- structed by Mr. H. K. Woo of Messrs. Woo and Nash,

Counsel Outlines Plaintiff's

Case

Mr. Sheldon, opening the case, sald on February 18. 1932. plaintiff purchased for a client of his named Mok Ying Kwai, - 4,000 shures in Messrs. Watson & Co., Ltd... delivery on May settlement at a price of $16.50. About April

a new issue was made by Messrs. Watson's and a block of 1,000 shares of the new issue was taken up at par ($10), and placed to the account of Mr. Mok. Plaintiff was therefore holding for Mok 5,000 shares of Messrs. Watson & Co., Ltd.

Settlement was on May 25 and Mr. Mok did not wish to take de- livery and agreed with the plain- if that the latter carry the shares. The carrying prices agreed were $14 per old share and $134 For new share. That was under the market rate.

it he sold he would put the sale through plaintiff so there would be no loss of brokerage.

Mr. Mok went away a" short while afterwards but before he went Mr. Woo told plaintiff he would like him to write a letter confirming the transaction. This Mr. Croucher did the same morn- ing and took the letter to MessTS.

Butterfield and Swire himself.

ing the sharës,

"discharged

from this heavy lability? It is shown by the letter I have written to Woo Hay Tong. Your books do not show that Moe was discharged of his ability of 869,500? There is nothing in my books.

#

There is nothing in your books to show that this ability was transferred from Mok to Woo?- do not think so, except that you

have. Mr. Woo's account.

Was the financial position. be- tween you and Mok this: that at May settlement day, you were carrying shares against $135,000 for Mok which were worth only $137,000. These shares were $3,000

ICHANG NOTES

The New Life Movement

(From Our Own Correspondent).

Tchang, Aptu 18.. The New Life Movement created quite a stir in Ichang on Monday, 16th. April Rules for Hygiene and General Behavioun were print ed in the local daily papera. Lan- the afternoon a monster proces terns were hung at shop doors: In sion, probably the largest ever yet Ichang parded the seen in streets. Soldiers, merchants and Cements, 1,000 Hotels, 4,000 Wat- school children all took part, bugle sons old and 1,000 Watsons new and fife bands heading the various squads Order was perfect. One dreds of lanterns displayed in the interesting feature of the Bum-

parade was the representing of various trades. A huge Welling- ton boot by the shoe shop; naji kegs by the fronmonger. A big clock by the watchmaker, etc., etc. There were quite a uniber of cleverly made planes.

Yes,

fi

Do you still say you had a good margin on these shares?--It was satifactory to me..

Would you have put your own at that

into Watsons

money time?-Yes.

Two days after the transaction between Woo and Mok they fell, did they not?-I am not aware of

that

And the inability of Mok to take up the share caused you an xiety I suppose?—None,

Do you know that at the time of his death Woo Hay-tong had about $450,000 out as security

against 'shares?—Yes.

But, for Woo's suggestion that this letter regarding the trans- action be written it

is probable that this letter would never have come into existence? Probably,

Million In The Bank, At the time of his death "Woo Hay-tong had well over a million dollars cash, available and ready at hand that he could do with as The would. Is it not curious under

the circumstances,

almost un- believable, that he should. want to borrow for that is what amounts to-$69,500 from you? Yes.

|

One item which one would like to have seen in the list of rules was not there, namely, that the hundreds of barbers who ply their trade on the street and carpet the sidewalks with human hair, should be compelled to carry a broom and sweep up the fruits of their clip- pers!

Some warm summerlike "days have been followed by wet and cold, but now spring seems to have come la earnest an to stay.

H.K. POLICE RESERVE

リ

(ORDERS BY THE HON. MR. E, D. C. WOLFE,, C.M.G., INSPECTOR GENERAL OF POLICE)

As far as plaintiff was concerned the transaction was that Woo Hay Tong had taken over the shares and Mr. Mok's llability had ceased.

Mr. Jenkin: · About this letter On several occasions between June you typed on June 1. Before")

SUMMER UNIFORM 2 arid 18 plaintiff saw Mr. Woo

ask you any question, it would be Summer Uniform will be taken and asked him if he intended sell-fairer if we put our theory to you into general wear as from Mon

which had taken place. with regard to the transaction day, April 23,, 1934. Those members Mr. Woo who are not in possession of White Hay Tong has a book" in which he Uniform will communicate with records gums of money which he their Company Equipment Officer advanced, principally to brokers at once. On the date of his death he had advanced over $450.000 in that manner. This letter of yours.. 13 pinned as you know, in that Advarice Book against the name of Mok Ying Kwal The deceased

But on June 18 Mr. Woo Hay Tong was shot to death in his uffice and his estate ultimately becarte vested with Messrs, Forsyth and Butlin as executors.

Executors Approached Plaintiff, when he heard "they were appointed executors told Mr. Forsyth of the transaction. Mr. Forsyth informed plaintiff that there was no record in the papers

CHINESE COMPANY

|

UNION INSURANCE

Dividend Of £2

Per Share

Subject to audit, the Directors of the Union Insurance Society of Canton, Ltd., will recommend the payment of a dividend of £2 (two pounds) per share for the year ended December 31, 1933.

Subject to audit, the Directors Ltd., will recommend the payment of the China Fire Insurance Co. of a dividend of $12 per share, a bonus dividend of $6 per ahire snd an exchange Bonus dividend of $7 per share for the year ended December 31, 1933.

Subject to audit, the Directors Co., Ltd., will recommend the pay. of the British Traders' Insurance

ment of a dividend of 9s. (nine shillings) per share for the year ended December 31, 1933.

VICKERS LIMITED

Strong Financial Position

The outstanding feature of the report and accounts fof 1933 of

Vickers, Limited, the famous British firm of armament makers, shipbuilders, heavy-steel makers, engineers and aircraft manufac- turers, is the extraordinary large amount of its cash resources. The combined holding of cash at bankers and in hand and of Bri- tilah Government securities is £6,042,772 compared with £4,596,- 185, while the total of floating or liquid assets amounts to £7,593,- 337: Against this" current liabili- | tles amount to only £1,204,379. The large surping or notting con- tracts far in excess of the 'output in the past year. The gross, profit for 1933 was £816,362 against 2811,684 in 1932,

Debenture. Interest, income tax and other expenses absorb £712- 997, dividends on preference capl- Leave-Inspector (R) Chow Utal £418,190, a dividend of 4 per Ting has been appointed Acting cent on the ordinary shares takes O.C. Chinese Company as from £123,155 the same as in 1932 and Saturday, April 28 to Wednesday,

the sum carried forward is in- May 2, 1934 during the absence on

creased from £222,023 to 224,-

left by Mr. Woo and plaintiff then also had a book: in which he kept leave of Mr. Tso, Tsuiñ On, Assis- | 041, The actual det' prout for the

On May 25 the balance payable to plaintiff was $73,210. Of this amount $3,710 was paid. At the end of May the name of Woo Hay Tong came into the case. He was the compradore of the shipping department of Messrs. Butterfield & Swire, and a brother of Mr. Woo, of Messrs. Woo and Nash. He was stated that there must be a letter generally interested in the share somewhere among them which he market. At the end of May, Mr.imself had written concerning the Mak, who was also a relative" of transaction. Mr. Forsyth replied Mr. Woo Hay Tong and employed he had no letter and that things ut Messrs. Butterfeld and Swire. were in a mess, Mr. Woo's books was indebted in a large sum of were difficult to clarify. money, to Mr. Woo Hay Tong. He wanted Mr. Woo Hay Tong to re- lease to him 1,000 shares in the Realty Company which Mr. Woo was holding as security for ad- vances he had made to Mok. Mr. Mok offered to pay Mr. Woo Hay Tong for the release of the Real- tles $4,000 cash which Mr. Woo was not willing to take. not un- naturally as Realties on that date "were worth $12.

Watson's Offered Mr. Mok then offered in addition the 5,000 Watson's shares which were being carried for him by plaintiff, the position being that the Watsons were being carried for Mok against payment of $69,500, whereas in fact the market price at that time was about $15 for old shares and $144 for the new issue giving $74.500. It was clear therefore that if Mr. Woo received them at $69,500 he would receive. them at $5.000" under the market price.

Mr. Mok, 2

-After Mr. Croucher, had seen Mr. Forsyth on several occasions Mr. Forsyth one day informed him that the letter had come to light

There was an entry in hook kept by Mr. Woo Hay Tong in his own handwriting that the Realties were in fact released.

Correspondence between the two parties was then read.

Puintiff, it was stated, received a letter on July 27, 1933 from Messrs. Woo and Nash that Counsel was of the opinion that there was not sumcient evidence for the executors to admit the claim.

Previous to that Mr. Mok had written to Plaintiff asking for a statement in writing as to what had happened with regard to the Watsons. That was written, said Mr. Sheldon, because Mr. Mok was being sued by the executors' of Woo Hay Tong's estate and evi- dence of the transaction“ would increase or decrease his indebted

41

fa récord of shares in which he had acquired an interest by purchase. He apparently kept this book him- self, because, if it is necessary, we shall prove that the entries are in his own handwriting. Among the many strange things in this case is this; if he a purchased these shares and they were his own property, that he should have recorded them in a book entirely inapplicable to that transaction.

Can

Reserve) C.C. Chinese Company. tant Superintendent of Police | year 19 £543,364 an increase of £14,325. The increase in the INDIAN COMPANY

profits of the parent Company did not by any means fully reflect recruits of the Indian Company and in the financial results of the Training Course (Part All the improvement in the business residing at Hong Kong will attend operating companies. Vickers- Chinese Company's Headquarters. Armstrongs earned a trading pro- 17. Queen's. Road Central on Thursday, May 3 at 17.30 hours for The English

fit of £401,952 against £425,652. instruction.

Steel Corporation made a profit for the first time. General Sir Herbert Lawrence, the Chairman of Vickers, Limited, at the annual meeting held on March 26th said that the English Steel Corporation's orders in 1933 were 40 per cent more than in 1932, walie Vickers-Armstrongs had 14 ships under construction at Bar- Tow that the Elswick Works have been well occupied with satisfac- tory trading results and that the Dartford Works were exceptionally active in 1933.

EMERGENCY UNIT RESERVE you explain this?—I don't know what his ideas were.

Riot Drill A Riot Drill, will be You will agree that it is rather | carried out by members of the curious they should be put in the Emergency Unit Reserve on Fri- wrong" book?-I think 80,

day, May 4. Members will fall in Mr. Sheldon protested that the at No. 2 Police Station at 17.30 question was one in which witness hours. Dress: Optional. was asked his opinion. Hla Lord- that he was only ship said putting it down as such.

One Theory. After several ather questions, Mr. Jenkin said: From the fact that he pinned your letter to the

"Advance" book, one

Our theories is that Mok wanted the 1,000 Realties and offered $4.000 and Woo wanted something more. Mok said he had shares which you, Mr. Croucher, were carrying for him. In order to secure him for

C. CHAMPKIN, Acting DSP. (R.)

Hong Kong, April 30,

CANTON SILK MARKET

Canton Quotations Extra OS. 13/15 EK $460N; Small Extra OS. 13/15 HK.

$390N.

וי כו

Crack NB. 14/16 HK $290N. Extra Extra 20/22 HK. $290N. Waste NS. Open HK $56N.

April 27. The Kwangtung Raw Silk Test- the necessary amount, it is arranging Bureau, Department of Recon- ed that Woo shall become a sec-struction. Canton, China. Mr. Woo Hay Tong agreed toess.

he

ond mortgagee

shares Plaintiff's Evidence

of these this proposition and stated would release the 1,000 Realties to Mr. Croucher was then called and he shall obtain any balance

and

corroborated the opening which may be due to Mok at any time. Before he does that he statement made by Mr. Sheldon,

wants to be sure that (1) you have and stated that just after the

got the shares and (2) the balance death of Mr. Woo, the value of the shares fell as the market knew over and above the $69,000 shall be paid to him. In other words Woo held some of the shares and also because of the outbreak of there is being made a further cholera in Canton which had charge on the shares by Woo, He affected Watson's business in retells you that he is making this a letter Surd to aerated waters sales:

advance and he wants" from you confirming that so that you shall protect him?".

Do you get that?--I do.

You

12:86 accordingly wrote letter to him which he 'pins in his advance book. I recognise that that is dean against your evidence, this morning. 1. am re- ing to suggest that that letter is more in, accord with my theory than yours? I don't agree with

That was at the end of May and on June 1 or 2 Woo Hay Tong rang up plaintiff - and: 'asked him to call round and see him. When plaintiff arrived there was a short discussion about the value of Watson's shares and Mr. Woo ask ed plaintiff if he had in fact any Watson's shares belonging to Mr. Mok. In answer to Mr. Woo's query plaintiff said he could not discuss his client's business in his absence so Mr. Mok was called in. When he arrived he told them that plaintiff held 5,000 shares for him: Plaintiff then "went into de- tails of the transaction, the price et which he was carrying the shares and mentioned that the rate of interest was 1 per cent

per month.

Confirmation Wanted Mr Woo then stated that he wished to take from Mr. Mok the Watson's shares, a statement Mr. Mbl corifirmed. The transaction was thereby put through,

Mr. Croucher then asked 'Mr. Woo how long he wished him to carry the shares to which Mr. Woo replied. that he did not think he was going to keep them. If they Improved he would probably sell hether naturally, plaintif asked what would become of his broker. age because it was quite clear that it. Mr. Woo intended to sell after

In answer to Mr. Jenkin, plain tiff stated that he first contracted to purchase for Mok 4,000 Watsons in February. 1932, during Novem- ber 1931, but on February 18 he failed to take up the shares and a new contract was entered into. There was a difference of $3,506 payable by Mok, which was settled, Under a fresh contract made on February 18 Mok became liable to take up the 4,000 Watsons on May Settlement day, but when May Settlement day arrived he again failed to take them up and asked witness to carry them

Asked why he agreed to do that' witness replied::

It was a good out-let for money and I was under the market and had a certain amount of margin.

Vérbal Agreement

you.

Sale By Mok: On your books, you told us, you have not discharged Mok?-I have discharged. Mok. D

Did you give him anything in writing?--No.

Did he not ask you for any thing?-No.

Witness explained that at the time he discharged mox, he open ed a new account in the ledger in the name of Woo hay long.

II

Spot

Yokohama Quotations

April 28.

en 520 Yen 525,

Bourse six months,

New York Quotations

July

April 27.

Bid Ask 1.20 1.21 September

1.241.24 New York Quotations areob tained through Courtesy of Amer ican Oriental Fingrice Corpora tion

taking over Mok's entire liability? Since he has bought the shares, he took over all the pronta com ing from them.

Mr. Sheldon (re-examining):- It has been suggested that you wUI be loosing in vain for any entry in your books showing Mok's dis- charge? Is anything shown a your books at all?-Moks name

Mr. Jenkin: In the ledger there is no entry that you agreed to

these shares under the verbal At a later stage, Mr. Jenkin appears against 4000 old Watsons agreement of May 25-Witness. aaked: Am I right in: apprehending and 100, new in the trial balance on You must work in conjunction with your position as regards Woo in May 1 but on June 1 the Watsons the settlement book. RENDERED this manner, that there was a sale i stood against Woo's namé“ But to this day there is no re- ] by Moe to Woo?—Yes, in my pre-as Mok's Evidence. a few days after the transaction cord in the settlement book of sence on June 1. Mr. Mok Ying Kwal, a member was put through Mr. Croucher's Mok ever having been discharged From the use of the words "take of the Bar,, who was manager of pront would be only 1 per cent. from any obligation-That is so over you jumped to the conthe Chinese department of the per month for a few days only if not curious then that your cluston that he was taking over China Bugar! Rednery next gave Mr. Woo then told plaintiff that books do not show that Mok was not only these shares but was evidence. He said in May 1932 he

SILVER WEDDING

Dr. thd Mrs. Chadwick Kew of Shanghai, gave a cocktail party at their residence on Tuesday evening on the occasion of their Mrs. silver wedding anniversary... Chadwick Kew received the con- gratulations of her many friends dressed in black georgette and lace, with a corsage of mauve of~ chids. Ske. was assisted by her daughter, who was dressed in rose pink állk, with a tucked white geor- gette top! The four sons of Dr, and Mrs. Kew also helped to ex- tertain the guestä.

The floral decorations of the house were exceptionally beautiful and many beautiful presents were displayed, attesting the popularity, of this well-known couple, Dr, Chadwick Kew was the founder of the firm of Dr. Kew Brothers of

ongkong and Shanghải nỨC TẢ. tired from practice in 1925.

'Lig: amount- being something ke owed Mr. Woo Hay' Tong money. $30,000. Woo held as security-3,- 000 Realties and 500: Hotela.". In May be wanted 1,000 Realties and. paid 84,000 cash and at the same time sold 4,000 old Watsons and 1,000 new to Mr. Woo at $15 and. $14.50. respectively. These shares were being carried - at B14. and #13.50 respectively by Mr. Croucher.

Witness said that at the inter view between Mr. Woo, Mr. Croucher and himself, it was agreed that Mr. Croucher was to carry the shares for a month st the rate of 1 per cent interest a month;

Answering another question, wires Bald he had seen Mr Forsyth regarding these Watson' shares, apkalampir

The case was adjourned at this stage until 10 o'clock this morning.

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