1934-05-02 — Page 7

HONG KONG DAILY PRESS, WEDNESDAY, MAY 2, 1934.

Litigation Over Share Deal

MR. H.R. FORSYTH IN WITNESS

BOX: CROSS - EXAMINATION

BY COUNSEL

Do Rich Men Buy Forward?

The case to which Mr. N.V.A. Croucher a local share broker is suing Mr. H. R. Forsyth and Mr. S. T. Butlin, executors of the estate of the late Mr. Woo Hay Tong for $81,000 alleged to be due on a share deal, was continued before the Chief Justice, H's Honour Mr. A.DA.. MacGregor yesterday.

of

Mr. H. G. Sheldon, Instructed by Mr. Edgar Davidson Messrs. Hastings & Co.. was for the plaintiff and Messrs. Eldon Potter, K. C., F. C. Jenkin, K.C., and H. C. Macnamara, Instruct- ed by Mr. H, K. Woo of Messrs. Woo and Nash were for the de- fendants.

Yesterday morning, Mr. Eldon Potter outlined the case for afternoon, Mr. H. R. Forsyth the defence, while during the gave evidence and was cross-examined by Mr. H. G. Sheldon.

Mr. Potter

"

Outlines Defence

his Lordship must be was that satisfied there, was a sale by Mok to Woo of 5.000 Watsons; and.

between plaintiff, and Woo that! Woo would himself be liable.con- tractorally in the sum of $89,500.

Mr. Potter, opening the case for the "defence. dealt with the ad missibility of certain books in the .. proceedings. The books he wish-secondly that there was a contract

ed to bring before the Court were those in the handwriting at the late Mr. Woo Hay-tong. The first was that which contained, a record of advances, made to various partles against security on shares. Including that of Mck Ying-kwal It not only set out the amount ad- vanced but also set out the details of the advances.

The second document he wish- ed to put in was a note made on the Moxon and Taylor share ist. That document he submitted, was one of the greatest importance in considering the question of credit between Meft and Woo. He would justify its admission on the ground that it contained entries against credit, The

next document

was the envelope containing Mok's secur ity, on the front of which was .a statement as to the securities and amounts advanced. It show ed the true financial position be tween Mok and Woo and one of the arguments for the defence would be that it was impossible to believe that whatever happened

on Jurie

for

J

the

If Woo Hay-tong had under taken contractorally to pay $69,500 Mok must have been re- leased. but the defence submi ted that on the books Woo had no idea he was contracted to Mr. Croucher for $69,500 and had 'dis- charged Mak.

"Twofold Attack,

.

own advance book He treated them as further security for Mok's indebtedness.

Mr. Forsyth's Evidence

Mr. H. R. Forsyth, Chartered Ac- HIGH countant, who was one of the executors of Mr. Woo Hay Tong's will, gave evidence in the after- noon, He said that on June 19. Mr. Woo was 'murdered and On the following day he took posses- sion of his books and papers, a list of which he enumerated to" the Court.

rower.

DEVELOPMENT IN

"SCIENCE AND

ENGINEERING

STANDARD

HONG KONG

UNIVERSITY DEGREE

Broadcast Speech By Mr. G. C. Pelham

Wimess answering his Counsel, Mr. Eldon Potter, said that at the date of death "Mr. Woo"Hay Tong has as much as $1,200,000 readily Mr. G. C, Pelham, H.M. Trade available to him. in addition to Commissioner. delivered a very which there werę substantial cre- Interesting broadcast speech last dits in Woo, Mok, & Co.'s account evening on the development of in the bank's pass book. Deceas-selence. and engineering. He ed, according to the, books and said:-- papers left behind, appeared to be It is a pleasure again to talk to lender on shares and not a bor-you through the excellent medium On the date of his death of ZB.W. Z.B.W. is one of the he had $464,000 out on loan against results of amazing development shares. The interest on these loans in science and engineering during varied from six to eight per cent, the last few years, and it is about and it was never In any single Engineering that I want to talk case more than eight per cent. to you a few minutes tonight. The Witness had made, a diligent discovery through theory or ex- search of the books and could not perimentation of what can be done the find a single instance where Mr. by mechanical means and Woo had borrowed on shares at all. practical carrying out of those theories, and thus successfully pro- ducing new aids to life and know- ledge, must be absorbing occupa- tions to those engaged therein, but to

Cross-Examination Cross-examined by Mr. Shel- don; witness admitted that Mr. Croucher had been doing 'a con- siderable amount of business with Lin- Mr. Forsyth's firm (Messrs. stead and Davis). Witness agreed that Mr. Croucher had a number of interviews with him.'

Mr. Sheldon: In the course of one of these discussions, you said: "I don't doubt your word, but I can't fix the thing just yet.”—

"Witness:-I think I said that.

Mr. Sheldon: Whether Mr. Croucher is right or wrong, you personally believe that he believ ed the evidence he had given in

this court is true? I think it was

quite genuine.

"Our line of attack" said Mr. Potter "on the plaintiff's case is twofold Firstly we submit that on the evidence there was no sale by Mok to Woo but a pledge by Mok of his interest in these

He had given you and your many Watsons as further security under circumstances which will be legal advisers every assistance a considered. In other words Woo this claim since he made it? Yes, Hay-tong became second mort- I don't think he has with-held gagee of these shares a very anything at all. ordinary transaction.

the

the layman they sometimes appear to be little short of mira- culous.

Since the beginning of this year the word "recovery" has constantly passed cur lips and we here in kong feel that recovery in the rest of the world must sooner or later affect the part of the world in which we are living. Not the least interesting to us in this re- spect is the position in Great Britain.

Decrease In Taxation

the

In the British Electrical Industry important events have recently taken place. All the power-stations of the country have been linked up into what is known as the "Na- tional grid" and there has been a turn in the tide of the industry. There has been an increase in the demand for many of the products of the electrica, manufacturing in- dustry and the consumption of electric

power and light "have reached a new high record.

Gas engineering is taking a fur- ther step in progress as there is a movement towards-what might be described as a "gas-grid" in certain industrial districta.

I cannot leave this subject, with- out mentioning machine tools. There has of late been much re- search and development. There are now Lathes running at the astoni-- shing speed of 4,000 revolutions per minute. All classes of metals and their alloys are cut, planed, drilled, etc. at such speeds and with such accuracy that construc- tional engineers have no cause to complain of their tools.

The University

men

Now, the stone dropped into "the pool sends eddies as far as the water reaches. No part of the There is a general tendency to world can progress very far with-.

else- regard the outlook for British out there being response Engineering as definitely hopeful. where. In this year, in spite of It is in the newer industries which small set-backs here and there, employ electricity and the internal recovery is taking place in very

that engine combustion

many parts of the world, and greatest activities have taken place there is really no reason why the in recent years. But Britain's eddies should not reach us here, Engineering pre-eminence, which and in China, But it will, of. Witness in answer to another was built up on steam, still stands course, be a much better progress Our second line of attack will question agreed that not only did in the older divisions of the indus-If we ourselves can drop into the as locomotives and world pool a few stones of en- be that even if there was a sale Mr. Croucher with-hold nothing, try, such by Mok to Woo it is impossible but had given every assistance. steamships, though even here the deavour even although they may to belleve under the circumstances Mr. Sheldon: And he had from motor-ship and the electric or not yet be big ones. There is that Woo made himself contrac-time to time suggested to you that diesel-driven locomotive are invad-constant and increasing "en- 1 or 2 that deceased torally liable...

he might get rid of the shares in ing wider and wider spheres. It is deavour in Chinatowards the

02 Let us assume that there was a order to decrease the liability as significant

the bought 5,000 Watsons, and at the

changed establishment of industries" and same time, although he was ob-sale by Mok to Woo. Why then the shares were dropping?—I can't emphasis in prime movers that the for these and other general de viously a careful business man and should Woo, under, the circums- say that definitely.

aeroplane building industry, which velopment China requires entered in his book every single tances make himself personally Do you remember upon one oc- has never known steam, is proba-with technical training and · en- share he possessed, that he should. liable to the plaintiff and release casion, Mr. Croucher pointed out to bly the most prosperous among the gineering ability. It is, therefore. some unaccountable reason Me? What possible advantage you that there was a profit and to Engineering industries in propor interesting to note what is going omit those, if Mor's story was true could it have been to Woo Hay-get rid of the shares?—I can't re-ton to its size.

on in this direction. There are a that they were his own property. tong.

member his saying anything about

the shipbuilding industry number of seats of learning in Referring to the book contain-

My first proposition is this getting rid of the shares, though last year the output of ships from China affording training to this ing securities set out in detall, Mr. That a sale of property which has he did mention the profit,

British yards was small, being only end Indeed there is quite a long Potter sald Mr.. Forsyth would been pledged or mortgaged to 2

The Missing Link

about one fifteenth of the 1929 list of them in the China Year he took over prove that

3.000 third party does not create any

and 1930 outputs. Nevertheless, Book. Perhaps, however, the Cements, 1.500 Realties, and 500

contractoral ability between the Questioned with regard to

whether the output of any of the seat of learning of most immedi- Hotels.

purchaser of the property and the conformatory letter, Mr. Forsyth in post-war years be large or small ate interest to us is the Univer- Mr. Potter then entered a book mortgagee. The mortgagee, fur- answer to Counsel sald: On" the

that of the British yards exceeds sity of Hong Kong, and as if is dealing with the sale of 500 ther. has no power to prevent face of the letter it seemed obvious that for any other nation. possible that its engineering ac- Realties on June 13, 1932, for 85,- such a sale he is completely pro- to me that there was a carrying

tivities are not as fully known es 947. That, he said was the last tected. Therefore, there Is no transaction somewhere, but I could

In Motor production last year they ought to be I am going to entry made. It would be proved reason why from this point of not follow the link between "carry still further Improvements were bring some of them to your in evidence that that sum was view, there should be the slightest ing" and loan.

effected by British manufacturers. notice. paid into Woo Hay-tong's bank-contractorial liability between

As far as Commercial Vehicles

The general scheme of instrue- ing account with the Char- plaintiff and Woo Hay-tong.

are concerned the tendency, has tion in engineering in the Univer- tered Bank on that date. Mr.

been to concentrate on vehicles of sity of Hong Kong is the same as Woo used the name of Woo Mok

from one to three tons. Further in the University of London, Company at that bank but there

advance was made in 1933 in although more time is devoted to was no connection with Mok Ying-

adapting heavy oil engines to mo- practical work, The standard of Swai.

tor traffic.

Overseas, trade grew the Hong Kong degree is the same Did it not strike you as unusual and British cars and trucks of as that of the University of Lon“ Well-Known Personality.

take place until he was notified." that Mr. Woo, should approach standard make are to be seen in don. Woo Hay-tong was a person very Mr. Potter submitted," that what broker whom he has never em- every quarter of the world. I see All of the Engineering students well-known in the Colony, es- Mr. Croucher was doing was the tak ̄ | ployed, to do him an entirely from the recent Budget, speech in the University of Hong Kong pecially among the Chinese coming on, to his recollection of what gratituous service like that? It that the industry will now further devote a great deal of time.. to- munity; a man whose reputation took place, a legal inference that struck me that if he was after be alded, by a decrease in taxa-practical work. After a training was very high; a man whose state- Woo Hay-tong had undertaken { Mok, and there was this 3rd party, į tion. "

171 the physics and chemistry ment, if he was alive, to-day would personal liability.

he could get at Mok in that way. Closely allied to the motor in laboratories. their Engineering Mr. Croucher gets nothing out of dustry is that of aircraft. Some training includes experience and this except the loss of some secur- names such as Rolls-Royce, Napler, instruction in the machine and ity against indebtedness to him by de Havillarid and Armstrong-fitting shops. testing of steam, Mok? There was of course the Siddeley are almost household gas, and oll engines, steam and promise of ultimate business.

words in alteraft circles. Last water turbines, and electrical Apart from that, which really year saw many advances in the machinery of various types: They

spectacular

achievements, i also test construction materials. strike you as an unusual situation? the best known being the flight During the summer vacations

That is why we are all here.

over Mount Everest, the world's students are encouraged to obtain I won't say what I intend to highest mountain by two British more practical experience, either. Ray. In the light of my question aeroplanes. A less known achieve in the University workshops, or commercial en- is not the explanation In your ment was the non-stop fight of preferably in affidavit rather curious? I think a British aeroplane from Lincoln-gineering establishments. it is curious.

shire In England to Walvis Bay in In the fourth year of his course One of the points by your Coun- South West Africa, a distance of the student speciálitses in civil sel is that there is nothing in the 5309 miles. This aeroplane was mechanical instruction in auch books about this transaction? equipped with a remarkable Bri-chosen subject in addition

tish Invention, a mechanical lectures Yes,

Is there anything in the books control apparatus, automatically Graduates are "recommended to about a second charge or second maintaining an accurate course go abroad for two years practical mortgage? There is nothing.

once it is set. The journey occup-experience under commercial con- Ted 57 hours and for more than ditions. Many firms in England 30 hours of this time the now offer graduate-apprentice- Woomechanical control steered the ship courses of two years and a

aeroplane, When visibility is number of graduates of the Hong! It is possible that they might go poor this invention is invaluable. Kong University have taken ad- -- up-value?—Yes.

vantage of these.

Continuing, Mr. Potter said that Mr. Croucher was protected because he must be paid in fuil before he need release the securities. On the other hand, Woo Was also protected because no

sale could

Counsel submitted that all Woo wanted was (1) to know that Crouchen had the shares, and (2) that he wanted to tell Croucher he had an interest in these shares and did not want them parted

Mr. Sheldon: If you received that letter one morning addressed to you would you not think that someone had loaned you $89,500 against 5,000 Watsons?-1 might read that into it and suspect some- one had made mistake.

have carded much weight. fact every statement in his books would have some weight to-day in view of his reputation and stand

All through Woo Hay-long had played a very generous part with Mok. He was helping him out of With without notice to him. Other does not.come into it, does it not more obvious financial difficulties into wise was there any reason

ing.

which Mok had got. He helped him, out by lending him money. In considerable amounts without any interest.

such a contract?

•

Why Not Sell?

Lo

At "another stage, counsel asked why Mok' did not sell the 5.000 Plaintiff's Case,

Watsons if he had a profit of $5,000 He needed the Plaintiff's case as it appeared coming to him. on the writ, and this was a matter money as security and a sale would of great importance, was that Mok not only have provided him with had purchased 5,000 Watsons cash but would also have cleared which were carried by plaintiff his indebtedness to Mr. Croucher. Woo Hay-tong's custom was nev- and on June 1, Wood Hay-tong pur-

from Mok er to be "carried," and was it not chased these shares " and

undertook to be personally remarkable that in this instance responsible to the plaintiff. That he should allow himself to be car- was to say he entered into a con- ried at 1 per cent, per month when tract with plainr to pay him he had something between $120,- 869,500 and compound "intercet at 000 and. $123,000 in the Chartered one per cent per month and Mok Bank?

Woo himself was not a purchas- was to be discharged of all llabfi- ity. That was the case on which er of Watsons and it was clear the plaintiff must succeed. But to that he never intended to purchase succeed on that claim two things Watsons as an investment. Coun- were essential and must both bezel anld that because he made no established before plaintiff could attempt to redeem the shares and possibly get judgment. The first did not even enter them in his

Do Rich Men Buy Forward? It is possible that Mr. wanted 6,000 Watsons?—Yes.

The net result of this transac tion is that Mr. Woo gets the 5,000 Watsons while at the same time he obtains 85,000 from Mok towards his indebtedness and accedes to

(Continued on Page 12.)

to

Accompanying such spectacular achievement there is a steady im-

The majority of the Hong Kong provement in design of both air- University graduates in Civil En- craft and engines. Many British gineering have joined firms of machines are sold abroad and Engineers and Architects and have there is great activity and prosper-specialised in reinforced concrete ity in this newest of British En- ‚gineering industries.

(Continued on Page 10)

11

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