Sessional_Paper_1901 — Page 755

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5. Mr. SHEWAN, however, does not feel inclined to sign the above report, but has sent in one of his own, which is attached.

We have the honour to be,

Sir,

Your most obedient Servants,

ALFRED G. WISE,

(Chairman.)

Ho KAI

WEI YUK.

JOHN THURBURN.

LEUNG PUI CHI.

The Honourable

J. H. STEWART LOCKHART, C.M.G.,

Colonial Secretary,

&c.,

&C.,

&c.

Appendix I.

Mr. Shewan's Report.

There seems to be so much doubt as to the legal meaning of the words “ partners in a firm" that it would, if possible, have been well to have first had a clear definition of it. Taking the meaning to be one who shares in the profits or losses in proportion to his share of the capital or interest in the firm-which, I am advised, is by no means admitted in law-I do not see the impracticability of registering such partners, but I am of opinion that it is inadvisable, as I think that the resulting trouble and expense entailed on the Government by such a Registry Office would be too great. The object. of such registration, I take it, is to know with whom one is dealing, and this object I suggest might more easily and economically be obtained by inducing Chinese firms to advertise the names of their partners and the changes in their constitution from time to time as is done by foreign firms. This might be arrived at by disabling or debarring any partner not duly advertised, say, in the Government Gazette, from suing as a partner or from claiming any of the assets of the firm. Any time a change is made, ail the full names, aliases, or Tong names and addresses of each and all of the partners to be given and every firm of not less than a certain amount of capital to be compelled under a penalty to display its last advertisement of partners in a prominent place in its shop or office and to produce it whenever required. (This is really nothing more than is required of many limited Companies, so cannot be considered as a greater interference with trade.)

The above is, I submit, a simple way of meeting the difficulty and of doing away with the question of expense to the Colony. As to advertising bogus partners, that can be done equally by foreigners as well as Chinese, and I think the fear of it has been greatly exaggerated. Chinese firms value their good name and standing as much as foreigners do, and I do not believe would ruin their credit in the eyes of the public by advertising only men of straw as sole partners.

Hongkong, 24th September, 1901.

ROBT. SHEWAN.

Appendix II.

Hon. Dr. Ho Kai advocates that registration is desirable and advisable too h any way practicable. He thinks there are many difficulties in the way.

Firstly, in enforcing the law when made, the Chinese who are in the habit of putting down some of their many aliases or Tong names or the names of some relatives