1905-03-11 — Page 12

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"72

DEPARTURE OF H.M.S. " VENGEANCE,”

GREETED BY THE FLEET AT SEA.

8th inst.

THE HONGKONG TELEGRAPH SATURDAY, MARCH 11, 1905.

DR. ATKINSON AND THE SANITARY BOARD,

-

PROFIT AND LOSS. ACCOUNT. -

A Dr.. To Halance brought forward from last

year w ***geruim 5,130.15 Written off fornituro a/c 331 %..... 1,462.55 687.71

Tix. 8,300.41

Tis,

Cr.

Profit on sale of estate No. 6,

Younger that the terms on which the money fraud was an important one, and he should have Tawas raised for this company were extravagant to deal with it seriously, whether it was rele-

and, ridiculous. It was inid, that all these || vant or not. shares, except 375,000, were given away. To His Lordship thought the plaintiffs were make such an allegation was to shut one's eyes entitled to say that Chang was misled into to the business position of the company. He signing the memoranduas on the understand dil hot wish to draw a lurid picture of the case. ing that it would be binding. That had already been dean by Chang and Detring but the Corporation was undoubtedly in a desperate condition in 1900. It was short of capital; it had very large liabilities, and it was practically impossible for it to go on with out further capital. Another difficulty was that, owing to the Boxer troubles, the very existence of the mine was threatened. The Allled Fowen, or some of them, were taking steps that might very likely bave led to the property going altogether. Au Mr. Detring put it, the Apartition of China seemed to be looming before them." One of the European Powers was taking coal belonging to the company,

Tia. 8,300.41, Dependency.-Claim on the British Govern meat for rent of bungalows. Tls. 3.470.00 plus interest from 15th October, 1900,

The President of the Hongkong Sanitary Board is shortly going home on leave of ab- Shortly after eleven o'clock this morning of the meeting of 7th inst, to eulogise the work sence, and opportunity was taken at the close H.M.8. Vengeance sailed' for home with her paying off pennant, of 650 feet,

of the Hon. Dr. J. M. Atkinson during the term fying gay in the breeze, and her band he has presided at the Board. Col. Webb said giving it those old, but cheery, tunes of he was sure the members would cordially join By Balance of working account for

Rolling Home" and "Auld Lang Syne"

with him in wishing their President a good

1904 comm ................. 1,876,948 The few remaining whips in harbour played voyage and the pleasant holiday which he

.......6439.43 berout and their vanus crews manned the deserves for the courtesy and consideration ba rigging and cheered lastly as she gradually

had always shown them at their meetings. He gathered way ander the pressure of her screws, alluded to the frequent conflicts on matters. The ship's company, aided by time expired before the Board, but by tactful, and wise then and invathis, returned the cheers with leading the members had been always hearty good wild and the hair te sound. brought to the correct conclusion. He wish ing with merry pr until the battleship

ed be. Atkinson good health, a good voyage ,was well nut in the location of the Lysemua

and a very pleasant holiday (Applause).— Pam. It was thupgu” at one time that the

Mr. A. Rumjahn endorsed what Col. Webb would be leaving pon earlier in the day bat

had said, and remarked that Dr, Atkinson's long connection with the Colony befitted him she was unabled in get away until about 11.15

to carry out his duties as president of the am, thus enabling Admiral Sir Gerard Noel,

Board, and had made him an eminent pre who has just retuned from Canton, to go aboard, make a final inspection and bid faresident. They had had much pleasure in well to the men. Soon after making the Ly. working with him since the new Fublic eemun Pass the Vengeance steamed through Health and Buildings Ordinance was enact the line of battleships and cruisers under Reared, and under his presidency the Colony Admiral the Hon. A. G. Curzon Howe, which

had at least been sayed thousands has been cruising in the vicinity of Mirs Bay dollars in carrying out the work of sanita. for some days past, and as she got abreast of

tior, especially with regard to cleansing each ship the crew, exchanged greetings and

work. Mr. Rumjalin understood that it used cheered lustily. She then beaded her course

to cont the Colony $80,000, but since the work to the south-west and was quickly lost to sight had been under their President this had been reduced to $7,000. He wished him a very pleasant voyage and speedy return, (Applause)

below the horizon.

Now that she has left the port it will not be amiss to give a few details concerning the manner in which the men aboard have spent a three years' commision on the station. Hoist. ing her pennant at Portsmouth on the 8th April, 1907, the Vengeance left for Malta a fortnight later and foluing the Mediterranean Fleet under the Commander-in-Chief of the Station, Admiral Sir Compton Edward Domville, K.c.a., the quickly settled down to

business in drills, evolutions, and so on, and was not long in proving herself a smart and efficient ship. At the regatta the much. priced cup for 14-0ared barges fell to her lot as well as several minor races. Her repre- sentatives in the boxing ring also met with various successes, the middle-weight and bantam championships being brought to a sucessful issue. Our readers will also remem. ber having seen or read of her men who, later, became more or less well-known in this Colony, in the fistic art. Getting orders to reinforce the China squadron, the Pengeance was ordered out to the East, and on leaving the Mediterranean was complimented by the Admiral, who ran up the signal "Good luck," and added, "I am very sorry to lors from my command such a clean And officient ship." On arriving at Hongkong, about the middle of July 1903, while Admiral Sir Cyprian Bridge was still in command, she steadily worked her way up towards the pre- mier position in drills, H.M.S. Albion then being her friendly rival, and as each vessel was about equally smart, they both had turns in being the first ship on the station. At the regatta at Wei-hai-wel she took second place to H.M.S. Cressy in winning boats, but scared a decided. victory in agato securing the Cup for 14-oared barges. The officers added another Cup to the list, for 6-oared gigs, while the beavy gun firing shield has been turned over to her for the year's shooting, in musketry, for which also cup is put up for competition. She stands at the top of the list, so that alto gether her commission shows that officers and men have worked well and hard to get their battleship in such trim and order as a reliable fighting unit to support the traditions of the Royal Navy under the White Ensign. The results of her last inspection, by Rear- Admiral the Hon, Curzon-Howe, was highly satisfactory, and just befors sailing Captain Leslie Stuart read extracts from a letter re- ceived from the flag officer setting_forth_how pleased he was at the high state of efficiency of the ship's company and cleanliness of every- thing connected with the vessel. He personally wished the captain, officers and ship's com pany the best of luck and a pleasant voyage home. In these wishes we join and while regretting their absence from the station, wo frust that all aboard will enjoy a well-deserved leave in the homeland.

SANITARY BOARD,

7th inst.

At the fortnightly meeting of the Sanitary Board this afternoon the annual reports for last year of the Medical Officer of Health, the Sani. tary Surveyor and the Colonial Veterinary Sur geon were submitted and laid on the table.

01

In thanking Col. Webb and Mr. Rumjako for their kind words, Dr. Atkinson alluded to the important work instituted by the Board in Carrying out the new Public Health and Build. ings Ordinance, which, since its enactment, was found to require careful consideration on several occasions, owing to it having been found impossible to carry out its provisions as originally drafted. The result was that the Government passed an amendment Ordinance which rendered it possible for the Chiness houses to have at any rate,two cubicles on a fluor. As the Ordinance was at first arranged it was impossible to have any cubicles. With

a

Board constituted such as their eleven members, the members could not always see alike, but he thought that on the whole the work had been carried on harmoniously. He thanked the Chinese representatives for persuading the native community to cleanse their dwellings more thoroughly, a step the realise under the regime of Sir Henry Blake, importance of which they were brought to The efforts of the Board had been concerned more with cleansing than anything olop, and the death rate had diminished perceptibly during the last three years. The death rate, per thous and per annum, had diminished among Chinese from 20.03 in 1902 to 17,18 in 1904. Among non-Chinese it had diminished from 19 in 1902 to 12.48 in 1904 In addition to this, measures had been taken by the Government to stop the ravages of malaria by the training of uultahs, the removal of undergrowth and the filling in of swamps. The number of malaria patients admitted into the hospitals had dimished from 1,393 in 1901 to 490 in 1904. The number of deaths from this cause had also diminished, from $74 in 1901 10 30 in 1904. There had been a marked diminution of malaria and

great saving of human life. And this year there had been less plague th in any other year since 1897, but it was very dangerous to pro. phesy, because there were many facts about the plague bacilli of which they were ignorant. If they would only persuade the Chinese to help them, he thought that this year would be not so serious in this respect as last year (Applause).

THE WHIHAIWEI LAND AND BUILDING CO., LD.

REPORT OF DIRECTORB

for presentation at the sixth annual meeting of shareholders, to be held on Wednesday, the 8th March, 1905 at 4.30 o'clock p.m.

The directors have now to submit for the information of shareholders the audited general statement of accounts and balance sheet for the year ending 3rat December, 1904.

The four bungalows in Narcissus Bay were occupied during the summer season, but of the eight bungalows in Half Moon Bay, only three were lot.

The claim for ba-galow rents (Tis. 3,470) on account of the summer of goo is still in abeyance.

Estate No. 6, consisting of 83.114 mow of

BALANCE SHEET. Liabilities,

Tls.

.... 91,850.00 247.39

Cash due Weihaiwel agents............ Capital account Bundry creditors.914. Proft and loss account.................

1

Assets.

133.00 657.71 Tis. 93,908.10

Estate No. 1-Land ......Th. 8,31094 Buildings 17.542.37

6,334.90 30,041,88

"

2-Land

Buildings

3-Land 4-Land Furniture.................... Tls. 7,387.65 5--Land............. Less written off for depre.

ciation

2.462.55

Unexpired fire insurance.. Cash with Shanghai agents............ Sundry debtors.... Cash with the Hongkong & Shanghai

Banking Corporation Shanghai Gas Co., Ld. 6 per cent, debentures Tis. 9,100 cost ..............

W. A. C. PLATT, E JENNER Hodo,

Tls.

Mr. Justice Joyce said that under the circum. stances that was not to be wondered at, but whether they would pay for it afterwards was

another matter.

Mr. Hughes said it was considered likely the whole property would go. The political situa. tion was so grave that it was impossible for any. one to say what the future of this company would be. The probability was the mines would be destroyed immediately. Therefore, defendanti were running a great risk having anything whatever to do with them. So far from being barshly treated, plaintiffs had bene fitted considerably. The company was in the 36,376.78 position of a ship in extreme paril. The sum 1422.87 contributed in hard cash amounted to half a 9,590.69 million of money, and the risk run by the 4,616.10 defendants of losing this without getting any

25.853.38

4,935.10 173.74 7.05 276.00

975.22 8,691.24

Tis, 92,908.10

Directors,

I hereby certify that I have examined the books and documents of the Wei-hai-wei Land and Building Company, Limited, for the year ending 31st December, 1974, and find the above statement of accounts to be in accord- ance therewith,

ARTHUR R. LEAKE, A.C.A.,

Chartered Accountant.

LAVERI & CLARI,

Agents. Shanghai, 23rd February, 1905.

THE CHINESE ENGINEERING

AND MINING CO. CASE.

CHANG YEN·MAO_Y, “OREING AND OTHERS, The hearing of this case was resumed on 31st fan. It is an action by the plaintiff to have it declared that a certain memorandum of con. ditions relating to the sale of mines to the Chinese Engineering and Mining Company, Limited, is binding on the defendants, and, in the event of its being held not to be to binding, for a declaration that the sale was obtained by fraud and ought to be set aside. The previous hearings have been reported in our preceding

issues.

Mr. Younger, K.C., on behalf of the plaintiff, submitted that upon the evidence, so far as it had gone, there was no defence to the action. ef ring to the documents, the learned coun- sel contended that the defendants had know. ledge of them as well as Mr. Hoover, their agent. Mr. Morcing went so far as to say that, in his belief, the documents had been con cocted. How he got that belief it was difficult 1o understand.

return was very gitat,

His Lordship: Speculative, no doubt. M. Hughes Speculative | One might call it a gamble.

His Lordship: It would be a great property if you won.

Mr. Hughes: Yes, but risks have to be con sidered. They came to Hoover to save the Corporation from destruction. Aid was to be rendered, and half a million of money handed over, and yet plaintiffs say they have been defrauded. I should like to see my invest ments placed so well.

Mr. Justice Joyce; The mere fact that their property is worth more than it was before does not show they have not been defrauded. It might be they had gained, but that they might bave gained 500.000 more. Supposing you saw a chance of making £500,000 more.

|

Mr. Hughes: 1 might be templed. (Laugh- ter.) We are all human, but I should not expect any sympathy. On the other hand, should expect to be charged with ingratitude, if I afterwards complained that what I had was insufficient, as plaintiff's are doing in this case Counsel went on to say that the shares of the old company, which in 1900 were worth nemi nally £7 share (probably really nothing), were now worth £28, or thereabouts. This was entirely due to the capital brought in under this arrangement and the reorganisation brought about in consequence of the sale. The money could not otherwise has been raised. It was impossible to suppose that Chang and Detring did not know that in order to get the necessary capital for carrying on the business of the company, and to get the international suppon which was so much desired, it would be necessary that there should be paid-up shares given to various people. If the plaintiffs' case was that there was an agreement that not more than 375,000 share should be issued, he con- tended no evidence.

such an agreement existed, but that, on the contrary, the evidence was totally inconsistent with any such agree. ment. The boneficial result to the old share holders was the consequence of the extra ordinary courage of Mr. Mareing in taking up the matter at that time. His Excellency and Mr. Detring knew well that the only way of finding the money was by the issue of fully- paid shares, and he looked in vain for Any evidence of fraud or fraudulent misrepresenta tion on the part of his client.

The hearing was then adjourned.

THE EIGHTH DAY.

against his clients.

His Lordship: I want to know what interest you claim in the business.

Mr. Justice Joyce: He may explain. Mr. Younger proceeded to say that not only

The further hearing was continued on the 1st were the documents not concocted, but their contents were well known to the defendants, ut, when Mr. Hughes concluded his opening and the first of them was handed by Mr. More.

for the defendants, and said he had endeavour ing to Lord Salisbury in October, 1901. Reed to ascertain what was the case made ferring to the alterations in the agreement of } July 30, be submitted that the misrepresenta- lions made by the defendants entitled the plaintiffs to damages for the loss sustained. If this alleration of the document ever was ob tained it was by misrepresentation to Mr. Detring, who never for an instant would barO asented if he had supposed the defendants were going to do what they had done with the new company, In the issue of £500,000 de bentures-all of which he believed was sub-

Mr. Hughes; We claim as shareholders and debenture holder..

His Lordship: Do you claim anything under the agreement of July 307

Mr. Dughes said no, and that since the transaction went through, and the new com pany got possession, his clients never claimed any interest,

flis ́ordship: Do you fight the issue about

After alluding to the area under the Board's of land, east of the iran pier, was sold at a price scribed for by the Morsing group-an arranger his memomadum ?

Jurisdiction and describing the topography of the City of Victa and the comparative areas of the sea front of 1gkong and on the Kow. loon side, the reports tated that the number of domestic buildings in Victoria was 9.433. exclusive of barracks and police stations, of which, in all, 1,107 are non-Chinese dwellings,

The maximum monthly temperature was attained in the month of July and August, and the minimum in January, 80′′t being recorded for July, 80*8 for August, and 59's fo- January though the highest temperature recorded was sit on June 26th, and the lowest 44'8 on De- cember 24th. It was interesting to note that, throughout the year, only in the month of July alone the wind bad no East in it,'

of about Tls 170 per mon, realising a profit of about Tls 6.413.41 and the estate therefore dis appears from the company's accounts.

Leases have already been signed for seven bungalows for the coming season,

The company owns 339.8133 mow of land, comprised in the following 5 estates, of which sa far only about 42 mow have been utilised, leaving about zo8 mow to be developed :-

Estate No. 1-Consists of 108.54 mow on the beach in Narcissus Bay. On it there are four five-roomed bungalows.

Estate No. 1.-Consists of 64.821 mow in Half Moon Bay. On it there are diva five- roomed and three four-roomed bungalows,

Estate 0.3-Conslate of 19.6645 mow in Narcissus Bay,

of Mahto.

The total rainfall for the year was 80.41 inches as compared with 93.66 inches in the previous Estate No. 4Consists of 90.383 mow on year, the greatest rainfall being, on one day, the south side of Flagstaff Hill ILI3 inches on August 25th. The average Estate No. 5.-Consists of $5.415 mow east daily amount of sunshine was 5.2 hours, and on only 51 days was no sunshine recorded. Directors. Mr. P. McGregor Grant on his Within a period of four years, according to departure from Bhanghai, resigned his seat on the census taken in January roos, the populathe Board On his return to Shanghai, Mr. E Jenner Hogg resumed his seat on the creased by 35,093, and this affords eloquent Board, Mr. W. A, C. Platt retired in rotatios, testimony to the prosperity of the Colony." but being eligible for re-election, offers himself

On June 30th fast, the total strength of the accordingly. Roops in Garrison was for British Officers, Auditor.-M. A. R. Leake resigns, but offers 1415 British warrant officers, N. C. O.'s, and himself for re-election, 'men, and 48 Indian (native) officers, and 2,513

Indian Warrant officers, N. C, Q.'s, and men.

tlon, exclusive of the New Territory, had in

The total strength of the British Fleet on the China Station on the same day was 10,067, aa compared with Epos in the previous year.

The birthe registered during the year were: -Non-Chinese 263, Chinese 942, equal to " rate of 3.3 per 1000 as compared with 32 per 1000 in the previous year.

The total number of deaths was 6,119as com- pared with 6,185 la the previous year, or 16 94 par 1000.

A CASE OF ANTHRAX,

Dr. A; Gibson, Colonial Veterinary Surgeon, reported a case of anthrax which occurred in the Kennedy Town Cattle Depot on the night of the soth alto, and said the animal came into

the depot two weeks previously and showed

no symptoms of disease up to that date There was every possibility of the disease having been contracted in the depot. The animal; was a Chinese bullock, and was found dead by the inspector when the depot was opened in the morning. The shed was washed and disinfected and the carcase cremated. The

11

W. A. C. PLATT,

Chairman.

Shanghai, z3rd February, 1995,

WORKING ACCOUNT

ment was made that every person who took op 100 in debentures received 50 in fully-paid shares in the company. That meant that £250,000 in fully paid shares was given by way of bonus, and the property of the Chinese shareholders was watered by that amount. In- stead of receiving £375,000 in shares in a com- pany, the whole shares in which had bean issued for full consideration, they received £375,000 in shares in a company with a capital of $1,000,000, and not one penny had been received by the company in respect of the remaining 625,000 shares.

THE CASE FOR THE DETENES.

Mr. Hughes, K.C., in opening the defence, asked his lordship to the cold regions of fact. He complained of the wholesale charges of fraud and misrepresentation which Mr. Younger bad made without being supported by the be found in the pleadings. It was improper to say, "We hope when the defendants go into the box to prove the fraud we allege. Mr. Morcing and Mr. Hooyer would go into the box, but he was glad to believe the one side would be unsuccessful in their endeavour to bring home these charges against the defend ants. From the beginning to the end of theas transactions, Mr. Morelog had always taken the view that the memorandum of Feb. 19 was intended to be carried out, and should be loyally carried out, and he had used every effort to get that done,

evidence, and of which there was no trace to

Mr. Hughes: Certainly not.. His Lordship: Why did not you say in your defence that you admitted the memorandum

to be binding?

Mr. Hughes did not think that could have been done, because the statement of claim was drawn in a form which was not accurate. From beginning to end Mr. Moreing had always taken up the position that he did not dispule that the memorandum ought to be carried out to the fullest possible extent, and he had used every endeavour to get it carried

out

His Lordship in your sense, you do not abject to the declaration that Mr. Lavett asks

for

Mr. Hughes; Not the least.

object. It is that the defandants are not His Lordships And Mr. Haldane does not entitled to keep the property without conform. ing to the memorandum.

Mr. Hughes: We have not got the property.

Mr. Hughes: If that is the case. I must meet it; but I do not think there is a shadow of evidence of it. The only way he could relieve the Court of this matter was by his learned friend saying frankly and freely that be did not allege against Moreing or Hoover any fraud or misrepresentation,

for themselves. It must have been intended His Lordship thought the documents spoke that the memorandum was to be binding There was evidence for the proposition that Mr. Hughes's clients represented to Chack and Dairing that the memorandum was not to be binding.

Mr. Hughes said that was not fraud.

His Lordship Would it not be fraud to la duce a man to execute a document with a consequences and then to repudiate that docu collateral document to save him from further meat? |

company issued for public subscription ?—I did not know how the money was to be secured. It was evident one could not get subscriptions at par with the company in its then condition. to sell this property to the company for Had you any idea the syndicate was going

£1,000,000-No; I did not know what the financial arrangements were.

he was

or November that it was suggested that altera

Witness went on to say that it was in October ions were required by the Oriental Syndicate. He did not know whether that was before or after Morning had cabled out accepting the rect could be made by offer and acceptance, contracts Asked whether he thought a con- and then, altered, he said he had no opinion i besided by lawyers on the matter. The syndicate to take over the business and carry it through. He was told he could not make a profit out of the old contract, and the object of the alterations was to enable him to make a profit, as it was desired that a profit should be

not accurate with reference to the Chinese made. The latter of Morsing to Datring of Novamber y contained statements which were

Board and Chung. He told Mr. Detring the Oriental Syndicate wanted matters "straighten: lng out!

ment, but not fraud.

breach of agree Mr. Hughes It would be a bran Mr. Barber Charles Hoover, mining engineer, said he had been a partner in the firm of Be Did you think the "straightening-out” would wick, Moreirg and Co since November 1904 change 375.000 into 1,000,000?---No; it never When he went to China for Mr. Morning in occurred to me in that light. It might have- 1899 he had no experience in financial matters. occured to Detring in that light. He had conversations with Chang and DetringWas there any suggestion made by you that with regard to mining matters. Deiring told the object of the alteration was to alter the him that Chang, under his applantment as price the company was to pay for the property? Director-General of Mines, had to find capital No. for the working of the mines. Witness went on Asked whether he tried to secure that the a tour of inspection, and reported the result to entire management of the property of the com Chang. The desirability of raising further pany in China should be in the Chinese Board, capital for the purpose of promoting Chang's witness said he did. Certain provisions with mining undertakings was discussed. During reference to the directors were not put in the the Boxer rising Delring told witness that it articles; but if he had known the facts be would was proposed to place the company in More- have insisted on that being done. Clause 8 of Ing's hands to undergo a thorough reorganisathe memorandum said that the management of tion. The old company was in a bad way the property of the company in China was to be financially. With regard to its political situa- tion, Chang gave it as his opinion that the vent that Board from interfering with the de-

in the Chinese Board; but he wanted to pre whole of the Empire would be dismembered, and tailed administration of the mines. He wanted that probably they would soon see the last of the the manager to have control, subject to the mines, unless something in the shape of relief Chinese Board. He and Mr. Wouters worked came from the Allied Powers. It was finally together to do away with the thieving which decided that it would be best to have an was going on in the mines; but, to far as he was English company. Discussion took place as concerned, he did not mean to ignore the Chi- to the terms the shareholders in the new com pany were to receive, and from the beginning certain document was deliberately signed to nese Board Asked whether he knew that a it was agreed that witness should assist in the make the Chinese Board a sham Board. vit work and have something out of it. Chang ness said that he did not know with what and Derring understood that a profit was to be object it was signed. made by himself and Morcing for reorganising the company and raising further money. It was understood that these profits were to ba divided with Chang and Deiring. The agree. ment was explained by Mr. Eanies to Chang and Detring, and he believed Chang under stood it, because he wanted to make a sort of insurance company, to insure against the Boxers, and proposed the distribution of some three shares among the Generals. (Laughter) Detring fully explained everything to Chang. There was but little discussion on the question of profits; but in one occasion Chang saked Detring what his own profit was likely to be, and witness said that if everything went well there might be 200,000 shares to be divided between Chang, Moreig, and Detring, He did not remember any discussion about the value of the abaret. He had only seen one of the despatches which hd been put in evidence, and be handed to Mr. Moreing, and reported what had been done. Except in a general way, he did not know of the arrangement Mr. Moreing made with the Oriental Syndicate.

Mr. Hughes: suggested that the Oriental Syndicate was another name for Marcings. I that true?No; it was a different thing alto- gether. Mr. Davis and Mr. Turner managed the syndicate. I told those gentlemen that it behalf of the new company, with reference to Mr. Hamilton, K.C., cross-examined, on would be necessary to aven Chinese board, the passage in Mr. Wynne's letter that the rui- and that hang should be made director generaling document in the trailer of the old com för life. I received the draft of an article pro-pany to the new company was that of Feb. 19, viding for the establishment of a Chinese board, 1901. Witness said that the board of the with Chang's appointment.

Did you wish the memorandum to be carried out?-At the time the memorandum was ex- ecuted I never thought it would be called into question; but I have always insisted that the memorandum ought to be carried out. Most of the clauses have been carried into effect.

Cross-examined by Mr. Levett, witness sald he was an American. He did not know until he arrived back from China late in 1901 that the company had paid the whole of its 1,000,000 shares for this property. He had written 10 Morelag la 1899 that the property was worth vastly more than £300,000. Assuming that adequats capital was provided he thought it was worth £1,000,000. His idea was that the existing loans should be re-financed, that £100,000 cash should be found, and that inter 'cational control should be obtained. thought the financial part of the transaction was a purely technical manner of carrying out the agreement which had been entered into. The balance of the shares, after providing the 375,000 for the Chinese shareholders, wäre to be in Mr. Moreing's hands to put the company on a sound financial footing.

May I take it you did not believe a word Chang said Very little.

There is no suggestion that Chang or Detr ing were bribed by you?-They ware not,

Did you think you had any personal interest in this agreement?-1 was acting a stake holder, and all the interest I had was that expected, if it went through, Mr. Morning would give me something out of the profits,

Did not you know that if the company was have no recollection of it. formed you were to transfer to the company?

The hearing was then further adjourned,

THE NINTH DAY.

When the hearing was resumed on 2nd ult.

board as a "Daly opera"Yes,

Da, yatiramamber déscilbing the Chinese

Was it not yourself and Mr. de Wouters who reduced the action of the board to a "Daly opera-No; it was turned into as opers by the interference of every single member of the administration.

Did you sat, in summing up yoursix months work, say. "The mangement is now in foreign hands, with the Chinese board as a consulting board. The latter may prove useful, 'but certainly harmiras"? (Laughter.)—Yes,

Do you think that is what Chang meant when he signed that memoradum?-No.

He did not agree with Mr. Wynne that tha. agreement of February 19 was the "raling document. It was entered into at Chang's request. as he wished a document setting out the Chinese side of the business, and it was therefore stated what the character of the Chir.. nese board was to be. The document was intended to be binding

His Excellency said you said that would be the "ruling document." Are you prepared to contmdict that?--I am. That is not the states ment of the case as I know it.

defendant company authorised a letter to be written in reply, which aid that in their view the essential document was that of july 30, and that the document of February only gave a formal effect to the contract of July,

His Lordship: The name letter says this memorandum has no binding force, . I should have thought this letter was against you,

Mr. Hamilton: We do not wish to hide anything in this case.

Hi Lordship: That is repudiating the memorandum.

Witness denied that he ever told Chang or Detring that Chang was to have the same position in the new company an in the old company: He never agreed that Chang should have those powers, nor, in his opinion, did the memorandum provide for his having them. It was never agreed that Chang should be placed in the position of being supreme over the shareholders and the board in London. "As far as to knew, no statement was made to Chang to the effect that if he did not sign the docu ments he would be "cruïhed”. After his return to Europe he was appointed a director of the defendant company," and repeated endeavours had been made to come to some amicable Arrangement as to the interpretation of the memorandum of Feb. 19.

1

Were you very busy at the time of the Boxer rising ?-Not particularly. As a member of the volunteer corps I was out on pony patrol, assisting in the defence of the university. The Boxers said this was one of the first places they intended taking. They put a shell through my rooms in the university, and so I turned out. (Laughter.) Shortly afterwards I met Mr. Hoover and Mr. Fisher, and was told Change had been arrested..

Did he consult you?-Yes.he wanted to bring an action for wrongful arrest and falze -Imprisonment against the British commander.

(Laughter.)

You did nothing professionally ?—No,wi On your arrival at Tongku did you sen Chang1Yes. There were several aittings at dinner in a courtyard. They invited me la Join themes

It was, in fact, M. Morcing's own affairs. Hie Mr. Hoover was further cross-examined HeBid you have anything to do with him after arm were merely mining engineers. My said he identified the agreement of July 30 Hoover went out to China in a technical capacity as mining engineer. He could not get instructions by telegraph, and he did not clearly understand whether he was representing the firm or Mr. Moreing. The new company took over the property in February 1901.

His Lordship: They managed to get in. Mr. Hughes They took possession of all that was not in the hands of stronger powers, Mr. Justice Joyce : That is not it Me Hughes said that was his defence, and and ultimately they got possession of the whole. the line that had been taken from the begin. From February, 1901, the old company never ning to the end of the case. His Lordship bad possession of the property. would easily sea that to reconcile the view of Mr. Haldane said his clients were willing to His Excellency that he was to have absolute carry out the agreement, but he had insisted 381.84 control, in view of the directors in Europe that right through that the construction the plain 255.00 the ultimate control was to be with them, was sought to put upon it war onirageous. $55-43

|« difficult matter.

Mr. Justice Joyce: You do not dispute the 31001 memorandum in binding in law ? 639-75

for the year ending 31st December, 1904, Dr.

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food, and in this case was probably conveyed by rice straw.

11.46

Mr. Bushes took no view upon it. He

Did you? Yes. I remember they had const ulton, and 1 bad not tasted fresh meat for a month. Sa fell to,

Mr. Eames explained that the property was this?--Yes. When he mourning for his being vested in him as trustee, and that he was mother I did the complimentary thing: and to hold the property until such time as some called upon him as he lay beside the coffiu. further arrangement was come to. He under. stood that he had power to use the ordinary and proper means to form a company with a capital of £1,000,000. The £1,000,oco capital was originally suggested at Taku by Dering it was not suggested that the company should pay £1,000,000 to the old company for their property; but that they should pay 373,000 shares. He first heard it was necessary for the company to pay £1,000,000 shares when he Subacquently you discussed business?—You) arrived in England. The company aver did they said they wanted to turn the company into pay £1,000,000 to the old company. He pre a foreign company. At first they wanted a sort sumed the company would pay £1,000,000 la of Anglo Chinese company, When, however, abares, $75,000 to go to the old company, and I told them that was impossible, they suggested one of German, Belgian, or English nation. the other shares to those Mr. Moreing: in- fluenced to finance the company. He did not ality. They went on talking and talking, and suggest to Detring that the company would I couldn't get a word in... So to cut it short, I Hi Lordship: I think I can. There is no pay £1,000,000 in shares to anyone, He did asked what their object was. They said they

Hi Lordship Tam not going to decide the question of construction,

Mr. Haldane side he should argue that Court could not decide the case without.

the

80.41 simply said that Mr, Moreing was only one objection to a declaration that the defendants suggest to Bir. Eames that the company was to wanted more capital. Remembering the state $900 of twelve directora in the defendant company, are not entitled to retain this property without pay £3,000,000 in shares to the various parties, of the country, 1 kaow it would be almost im

15.00 and he and Mr. Hoover had done their best to

194.81 have ji carried out. Mr. Leyett's case, he said, conforming to the memorandum.

Questioned as to why the agreement did not possible to raise it lo China. They told me 935 was that Chang and the Chinese company were Mr. Huvlies said he had not said that or say that Moreing was to have 675,000 shares, ewick, Morcing, and Co. would probably to get $75,000 fully-paid shares, and nobody else anything like it. He was prepared to assent to witness said there was no specific reference as advance the money if a suitable scheme were 1,876.98 was to get any, and that the defendants, by a declaration that the memorandum of Febru- to, what was to be done with the 625,0:0, be put forward, and I then advised them to turn

giving them watered shares, bad not given ary 19, 1901, was binding on all the defendants, cause he did not know would it would be it into an English company. When the witness¦ Tis 4,99094 what they were entiled to. That meant con- and an order carrying into effect all its pro. necessary to romit was felt in Mr. Morning's was asked about the agreements in this case, tract, if it meant anything. But from the visions. The second part of the claim was to hands. It was not put la the deed. She said he did not take any law books to the evidence it was clear that His Excellency and the effect that the indenture and transfer of the Was your idea that there was never going to meetings of the persons interested, because 4,089.44 Mr. Detring know perfectly well there would same date were obtained by the fraudulent be a single share of the new company qued German officer had taken up his quarters in

1.50 be some number of the fully paid shares issued. misrepresentations and fraud of the defendants for subscription to the public cannot say the witness's library.

It would be impossible to and there was any and their agents, and ought to be set aside. that; I did not know how that was to be done. K-At this" stage the hearing was again adı Tle, 4,090.94 | much contract as that suggested by the plain. | With regard to that be made no admission. Do you suggest that Mr. Detting or dr. journed,

19h. He joined issus in the suggensón of Mr. The allegation of fraudulent representation and Memes though they would be ne shares in the

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[To be consinned.]