1906-12-01 — Page 13

THE HONGKONG TELEGRAPH SATURDAY DECEMBER 1, 1906.

CHUNG SHUN KOO'S BANKRUPTCY

THE JUDGMENT.

29th ult.

•

BREN SHELL, I WANSHURT, ANIN

TRADING CO.

The annual general meeting of the Shell Transport and Trading Company, Limited, was held on 23rd Octal Winchester House, Old Broad-street, E.C. Ir Marcus Samuel, Bart

1örritories and refinaries, and their alsst in slesmere and installations curtainly do "nut compare in value with those of the Sasil

Transport and Trading Company, Limhed. On enables them, to make, a very much larger set the other hand, the character of their produce Income, and your directbit bave naturally dating Red themselves that the proposed division of bo per cent. to the Royal Detch, is a perfects be prepared to recommend for your accep equitable one, which, in due course, they will tance; but

in ths circular which we issued of your holdings we were at great paint to ex

certain proportion plain to you that we have only so far, sigead

-In Bankruptcy Jurisdiction this morning, be- proceedings. But it is a wrong point of view. | tion is something “much more than this; the power of admitting:or, rejecting a proof, could (he chairman), presiding..: The Becretary (Mr. [ravenne, au lo 40 per cent to this company unde efore His Honour Sir Francis Piggott, Chief Justice, Sir Henry Berkeley, K.C., instructed by Mr. Stearasson, of Messrs. Deacon, Looker and Deacon, appeared for the fruster, in the matter of Chung-Shun Koo Mr. M. W. Slade, fastructed by Mr. R. F. C. Master (of Mosats, Johnide

Stokes and Master) and Mr. F. X. d'Almida Gastro représented a number of creditors, when his Honour the Chief Justice, delivered the following Judgment:-

His Hodour said: The unfortunate debtor comedy of errors. Up to the time of judgmenttions occur to me. He says that the deposit in in the action brought by Mr. Ho Tung against the Bank "proposed was di guaranteed

an arrangement to make an agreement subject to many contingencies, and 1 am unable to in- of ste Ducts and is plation that this form you to-day that negotiations are absdiate- of steamers and installations, which raises thily concluded, for you will easily realise that in

in this case has been the victim of a perfect mutated by Mr. Lawe the following observa § estató: and the intention that the judgmenting out the Bankruptcy proceedlogs, by fand to the large sum of 603,199.31. 5d. We assets of the magnitude: possessed by both

him the errors were of his own making; since

man

But.

have written off £10,000 from the cost and. ex-

doubt, with

| put to the crediton meeting ofiard August).] onderzba saidzzo: bela charge-on-the-land""""exercise, a second time,rights"which" "His "prec was not proceeded with was because the scheme | A charga on land as a legal termumeans a bar. | decessor in tiile bar a fondy exercised. - And was not voted by a majority in number repre- den imposed on land belonging to sad in the the same argument must apply to the power senting three-quarters in value of the credi, possession of the owest, which does not pre" of the Court to extend the time to extend tors who had proved. The figures do bear vent him dealing with it, but which limits his the time to do what? to admit, or to reject, or out this statement, and from this point power of dealing with it otherwise than as sub to require further evidence. I do not think of view Mr. Ho Tung's vole did not affect the act to the charge. But the completed execus either of the officers, having exercised theit altogether as 1 have already shown. Mr. Lowa seizure, or what is the same thing, the attach then come to the Court to extend the time-i.e. to then proceeds to explain why he could nat acment has dispossessed him the most effective extend the time to do, a second time, what they Smithews) having read the notice Cepl.the scheme which the debtor bad brought token of his dispossession is the order prohibit bad dons, or failed to do, once already. There

edaveling the meeting

The Chairman said: 1 now have to submit forward, giving a variety of reasons, many of ing him from alienating it, and all other per must be some limit. For the benefit of the to you the eighth annual report of the 1.Shell' which are certainly substantial reasons. But sons from receiving it,

reberally, the Official Receiver, or the this was a scheme propounded because the frat

The Land Officer, who learned in all the given a right of exercising a strict Transport and Trading Company, limited. Inviting you to disposa of

From the balance-sheet you will see that, in scheme had been defeated by Mr. Ho Tang's lore of his office I must here acknowledge, has supervision over the claims of any individual vote. I cannot assume that the first scheme draws my attention to another aspect of the creditor: but, whenience this supervision has shading the balance brought forward from the would have been objected to on the same

190, there is at credit profit a sum question. It was expressly provided by the been exercised, the individual creditor it en-

f£525,962. 81. Out of this an amount has grounds, cannot even express decided opin statute and a Vict. c. 110 9.13-that a judg. filled to soins protection also; his position ion on it; but in reading the objections for- ment should operate as a charge on real cannot be affected vis-a-vis the oficers who are creditor should have a preference, in "bank › fact that there has been a change in the rupicy

virtue of such charge if entered up officer, and a new brain has been brought to

sides is necessary, in order that we may each the proviso to the section. That ct in in Receiver had been appointed, could he revise en ached at weary of the Americal ethuraughly know the nature of any obligations one year before the bankruptcy is expressed in bear upon the investigation. If a new Oficial Fees of the issue of preference shares and companies a most careful investigation by both force in the Colony as it was passed prior to his predecessor action? Undoubtedly not. penges and as we ask your consent to write off which we take upon ourselves, aither Registration Ordinance, 1843, which requiries ness of carrying on the bankruptcy. I have have carried forward, 419,1,p.18. ed., you will, examinations are new progressing but the 1845: but its effect modified by the Land Nor can a Truites who succeeds to the bust out of the amount which we might otherwise ed to the concessions or in fallations. Tires it to be registered in the Land Office. purposely omilled any reference to the. Eng-callops, our rents pleasure that this heavy exactilegal form to be adapted so give effect to In England the Act has been modified, and is practice, which is more elaborately the sum of £13,500 which we receive less than decided, and presents considerable dificulty the agreements arrived at has not yet been it is provided by S. 17 and 28 Vict. c. 112 defined, because 'I think, the mean.. the cost of our shares in the Petroleum Pro One of the principal things which we both until it has actually been delivered in executink that the interpretation. I have given to the charge of the past year, because they cave acier profitivoidance of a dubtes 3. I that judgments are not to affect any landing of the b-section is clent.

ructe Adien Gesellschaft should not really fall have to consider a dual in tion: which it has beco hold did away with the brings the Colonial procedure into 1.ne with the

have only just been realised, yet, for reason Company available for distribution may be pus charge, and assimilated the law affecting home practice. land to that affecting personalty in pentect Bat the quantion of interpretation settled, which I shall explain to you, we have no hesita

at about 600,000. Naturally these have not Ta'the Colony. The effect of this is that the not be Investigated, and further evidence to writing off the whole of the losses in

18e European business ascertained to date, of something like £30,000 a year, the directors as at the present rate it would involve's charge judgment creditor has a charge on land if he substantiate them not be required? By no instead of charging four months of the loss to bas registered his judgment in the Land Office means; but the, duty of doing thịn, then, liesha current year's profile. We shall therefore shareholders with such a burden. Then we cor», of that company cannot consent to mulet their wise, and if he never had a charge execution be Official Receiver, or il be has passed on his carry forward the sum of £85:355: 6%. 1od, 3-tainly must avoid the payment of Dutch locome. a year prior to the bankrupicy; but not other with the Court, which may be set in motion by

functions, by the Trustee. The English cases, Producte Action Gesellschaft to 6occoo from Dutch possessions; and, whilst our With the raising of the capital of the Petroleum

lax upon any portion of our profits rót arising to be clear that, when the powers of the Oficiat declining to contribute our share, necessarily mutual-lawyers are endeavouring to solve these

Clellest állicontrol in the conduct of the business, Receiver or the Trustee under the section bave

and the sbeckingly bad results which have questions, caboot take the responsibility of beca exhausted, the application must be to the

been attained have arisen very largely from the deanaly concluded when some hlich, may giving you an assurance that the matter is Court to expunge, and that there is no limit to

management of the business on the Continent, arise which would prevent its fulfilment. the time during which this may be done. I

over which we had.practically not even super shall treat the motion as if it were such an

vision, and the results, showing in some place

MA application. It will be advisable for the Trustee

na return whatever for the ail, were only ¡com-

lirectors are of opinion that they would have with the notification of costs bereafter. il expedient to press the motion. I shall desi

had some redress against their co-partners for this state of things; but, considering that a bad settlement is better than a successful igwanit, they decided to sell their shares in the com- any to their co-partners at par," and also in sell them four of their steamers-viz., the Pinna, Fupiectela, Turbo, and Focilight, to obtain employment for steamers baving been one of the main inducements to the company to enter the European buslares, We found ourselves in an entirely false position, because we were only merchants baying aì! and having to consigo it, and we could not compele suc cessfully with other European organisations in al who market their own production and must accept the best price they can get for it; We can only congratulate ourselves at having obtained par value for shares the holding of which would have involved us in further losses, because, with the sale of the share and the steamers we have cancelled all contracis in- volving us in any liability la consign oil to the companies for sale.

mation to discharge the order I made er parts, accept the scheme-and which, I need hardly..of judgmeats, That Act is not in force dous it follow'that the claims of creditors caption in adopting this course, as well as of been subject to the English income tax, and,

did not disclose all his property, and that the could not give it to him; for the very good rea- which deal with this branch of the casa, seem son that it gave him more than a charge the possession of the land.

judgment is a secured creditor. Mr.Ho Tung on say: "that was his unhappy position all the much, but neither the express provision which to consider as to which of the claims he thinks'} municated to us months after the event. Your I middle companies, the,control of the business

UTRE AMALGAMATION SCHEME, By holding 60 per cent, of the abures in the

will pass, in fact, into the hands of the Royal. Dutch Company, and, under these circums tances, your directora have felt it absolutely secessary that that company should hold a substantial stake in the "Shell" Transport and Trading Company, Limited, and hence n have agreed to provide 500,000 shares at goa, per share, ex dividend for the cairent year,

Chung Chim Kwai referred to in the schema then they have been made by his opponents, is I understand the same person as Chung and having. already Ween the in the wit. Cheung Kwai who offered to pay the money in Trustee should have found him so upset as to necessarily apply to the proposal in the first ness box, I am not at all surpriand that the the first scheme. But the criticism does not be usable to give any coherent account of scheme, because under that the 20 per cent. himself or his affalis, "This judgment will dis was to be paid, by Chung Cheung Kwai, the ipase of some of these errors; but there is one debtor's brother, in the month of August. Mr. final set of errors said to have been committed Lowe may have had objections to this but I do by the debtor and those who allege themselves not find any statement of them. The objections to be his creditors, which will have to be un-which are personal to the debtor may perhaps ravelled hereafter. Further, if it was to com. have been advanced against the first scheme, plate the chain of errors, I have the misfortune to but the bribery, (te, the pointing out to the take a view of the law applicable to the debtor's Trustee that it was to his personal interest to which neither Counsel engaged in that case, say, was most reprehensible), occurred with re shamselves able to support. Having given gard to the acceptance of the new scheine, and the mattor very careful consideration, I have might not have occurred at all if the old scheme come to the conclusion,, for reasons which I

had been adopted, or at least considered; and will presently state, that a judgment creditor with regard to the allegations that the debtor is not a secured creditor, except in one very special case. I must therefore work out the

Trustee had the greatest difficulty in obtaining consequences of my view myself and give any information from him about his affairs, what judgment accordingly. But as it is perfectly said during the argument about the debtor's possible that either party may feel aggrieved

'state of mind must not be understood to mean by this view, and may wish to appeal, I think that I intend to pallinto his conduct, but that it advisable to argue the points involved as

the time has not arrived for me to deal with it. they were argued. First, than, I will assume. To adapt the words of the Trastee himself: The that a judgment creditor who has secured a debtor was so upset he could not exactly quite asth June, 1906, obtained a judgment, and on way through, from the time of Mr. Ho Tung's 29th June obtained a probibitory order, when he action in this Court to his public examination: came to prove his claim in the debtor's bank and the worry of his mind was undoubtedly in rupicy, awore on the win! form, that he held creased by the first scheme not going through. no security, the fact that he was a secured cre- ditor to the extent of the value of the property attached having gone out of his mind. It also escaped the recollection of his solicitar. From this mistake he sought to be relieved on the ground of inadvertence. This application was made to me ea parte and, the Trustee consent». ing

1 made the order, which the debtor now seeks to sat aside. “The inadvertence of the solicitor being sworn to, 1 am willing to accept it so far as he is concerned: though the debtor is justified in reserving the right to ask for fur- ther evidence of the inadvertence of Mr. Ho Tang himself should it became necessary. But in the view that I laks of the consequences going to its second stage in which this funding of the mistake it is unnecessary to go into this would have been available: and he objects 10 question; for he is not entitled to relict if his the second scheme because he is a secured proof as an unsecured creditor has been pre-creditar, which would prevent the fund being Judicial to the debtor, though I am bound to

available.

An analysis of the objection raised by the say 'do not find the law applicable to the particular circumstances of this case very Trustee to the new scheme show 'conclusively that the position of the debtor was materially : 10 exp. Clarke re Burr..{47 1. T. 2323) the altered for the worse by the vote by inadvest departing from · the usual practice of taking | boarding house keeper, 162, Des Vaux Road last year I warned you that the average prices those who are permanent shareholders in the :

ence of Mr. Ho. Tung as an unsecured creditor at the first meeting, and it is therefore, impos sible to let him amend his proof, unless an order could be made which would restore the status quo ante. But all this is obviously de pendent on whether the Trusice can succeed in knocking out the proof of some of the crei ditors who proved. If he dnes then the figures,

clear in the cases cited,

Judge undoubtedly lays down this principle that a creditor who has voted and omined, to value his security ought always to be allowed to withdraw his proof, and to be relieved from being deemed to have surrendered his security unless he has elected really to abandon his security; t at is, unless he has omitted to do that which he did omit, deliberately, and on purpose. If it has been done accidentally, he fit to impose, to be relieved from the loss of his security. In that case it is true the creditor had voted, but his vole seems to have had' no influence on the result of the meeting one way or another; and this being so, the principle is easy to be understood. This case seems to lay stress on the necessity of the creditor having acted advertently.

As to the debts of the other creditors not ba. ing valid debts, that undoubtedly would have been raised to the first scheme, but that is the subject of a special motion before me, and would have been dealt with then, as it will be dealt with now.

The gist of the objections was undoubtedly the fact that the leasehold properties which were relied on to produce some or the greater part of the 20 per cent, formed the security which Mr. Ho Tung held in virtue of and cold. Mr. Ho Tung has by his vote as an unsecured creditor prevented a scheme from

his prohibitory order. But this is blowing hot

EMIGRANTS FOR SINGAPORE.

FARMERS AS WOULD-BE STOWAWAYS,

29th ult. Detective Sergeant Grant," of the Central Police Station, paid a visit on board the steamer Gregory Apear in the harbour yesterday after

noon and arrested threa' boarding-house men,

I am therefore of oplaton that Mr. Ho Tung was a judgment creditor entitled to retain what he had obtained, namely, the realization of his attachment on the debtor's land: and that be was not to be treated as a secured creditor. His proof was defective because it was for too

alty for voting for the whole of his debt, that requires him to value his security, nor the pea he would be held to have abandoned his secu- rity, applies to him. I think I may fairly as sume that Mr. Ho Tung would have valued his execution at $19.500, the value he has put upou his so called security; and therefore the order which must be made in that is proof be reduc ed by that amount, but without any forfeiture of the rights which he has acquired under his completed execution. This will restore the resolution passed at the first meeting of cred- itors, and as it is now a special resolution as required by law, the second meeting required who it was alleged, were about to rash five 3.18 (2 and 3) mntist be called. The ques farmers to Singapore. After questioning the This farmers for a while, the officer took charge of order, however, ust be in abeyance until the gang, including the boarding house men, have considered the motion of the trustee call- and matched them to the station. ihren of on some of the creditors for further proof the farmers were charged with being on board the Gregory Apcar with the intention of slow- I proceed now to consider the Trustee's ing away, thereby defrauding the company. ion calling for further proof of the claims Lu Ting Fui, a boarding house runner, No. 045, Des Vœux Road Central, was put down as ed that his motion was entitled to priority, Fultioned to go on board the ship with the intention Sir H. Berkeley insisted, and indeed persist- Laiding and abetting the ibres, men above-men- I am quite clear that although logic would of getting them to Singapore without the know- seem to be on his side, there was no reason for ledge of the afficers of the ship. Cheung Sam, a motions in priority according to their respective notices. And it was the more necessary in admitted the proofs, and therefore the creditors this case, because the Official Receiver had

they were bona fide creditors. The course were entitled to be heard on their mo ion sa if pursued moreover had the advantage of reveal

tion of costs 1′′ must-deal, wil Taler.

to substantiate their claims.

from ceriain creditors,

|

EXPECTATIONS FOR 1906 REALISED.,

In my concluding remarks in December of

record, and it is scarcely surprising that, under realised, in the East, had been the worst on. these circumstances, as a result of the competi reduced; but I was also able to assure you that tion we had to meet, our profits have been

hope that ur fellow-shareholders will feel that Messrs. M. Samuel and Co have acted in a liberal spirit by giving the offer to their co shar holders of disposing of any interest which they may desire to realise, whilst themselves undertaking to supply the necessary number of

shares to enable the amalgamation to o through. me of the conditions of the agree- ment is that the "Shell" Company shall provide 200,000 of fresh working capital for the com bine, the Royal Dutch Company contributing

£300,000, and were we to distributa isa dividend the amount which we have edin. ed in 1906 it in guite inevitable that we should have to raise capital to do so, and the Royal Dutch Company have made the reasonable stipulation that we shall limitibm distribution for this year to's' per cent. To

next; andil have repeatedly frankly stated that "Shell" Company it makes very little difference. whether we receive the div'dent this year or

shareholders, who simply, speculate in the must nat, consider the interests of thote few the board of a

like this cannot, and company

ought, on such terms as the Court may think be enterily altered, and the question of the practice quite apart from the essential difference Court this morning, pleaded guilty to theif the additional capital raised by the Aristic the interests of the preference shareholders..

So much for this part of the case regarded

Central, was booked as having obtained the ship ment of two migrants on board the Gregory Hing, another boarding-house runner, wasthat Apear by fraud, and the indictment agalost Tam

ship the two emigaa ts. of aiding and absting the said Cheung Sam to The boarding house men on being placed before Mr. C.A. D. Melbourne, at the Police changes.

The complainant in the case iaid that while he was aboard the Apear steamer be met, the farmers and asked for their tickets. They had as having put them aboard. Further inquiries proved that the farmers only' arrived in the Colony from the interior yesterday, and they were rushed aboard ship immediately after. Ne tickets were procured for them, none was required, as the farmers had already been schooled as to the safest way to stow away.

His Worship discharged the farmers with a caution after they had each beep examined. He fined the first boarding house man $100 and the remaining two $15 each, which was paid.

from the point of view of Mr. Ho Tung being be recalcitrant, because they declined to come none, but pointed out the boarding-bouse mening to the Borneo Gelds, I invite you to nhta | subsequently on our own proportion. As wẹ:

on which the previous argument proceeds, willing certain misapprehensions in the bankruptcy between the 1st and 2nd sub-sections of secting concludment of the proof would probably re

18, which I have already dealt with, which I quire further consideration.

have now to attempt to set right. These creditors were assumed all the way through to ply with the Trustee's request to substantiate their claims, replying that they had already bees accepted by the Official Receiver: and no little invective was devoted to them, for assuming a position which, aller very carefully considering all the arguments, I have come to the conclusion was a strictly legal one to

a secured creditor. I now proceed to state my reasons for considering him not to be a secured creditor,

Sections 30 to 32 of the Ordinance deal with "Proof of debis," s. 30, treating of the rights and duties of secured creditors. Then two other subjects are dealt with Appropriation of Assets," by sections 33 to 35, and Property available for payment of debis," by sections 36 and 37. Afterwards we come to another group of sections, 38 to 42, which are headed "Effect of bankruptcy on antecedent transactions," of which #:38 treats of bestriction of rights of execution creditor," which follow si 45 of the English Bankruptcy Act, 1881.

This section lays down the important principle that a judgment creditor shall not be entitled to retain the benefit of an execution unless he has completed it before the date of the receiving order and before notice of the

assume.

The practice of appointing a Trustee is, understand, of rare occurrence, and the appli- cation of section 30 to him does not seem

CLAIM STRUCK OUT.

PLAINTIFF ABSENT.

the prospects for 1906 were very much better, and you will certainly learn with satisfaction res, and go in and out of them. I cannot that those expectations have been realised, add usefully any information to what I have we have subscribed and paid our third share now givan, except to state that should the agreement go through on the lines designed "l'etroleum Company, Limited, owing to the

have been carefully guarded, and will form, for stural development of their business, sad this

to years at least, the first charge on the entire is an enti ely satisfactory investment Refer profits of the amalgamated companies, and the tatistics given in the report, by which you should in any case have had to spend upwards will observe that we have materially, increased of £200,000 in sreciing a wax plast and creat our shipments of kerosene as compared with ing facilities for utilising the very valuab'e by• 1995. We have also increased them to a small products in cur Borneo oil, it will be seen that extent in liquid fuel, and to a very consider there is no hardship for us in contributing the able one in bentiue or petrol; for, in accord- ance with our anticipations, the time has working capital for the combine which we have arrived when the splendid qualities of our agreed to provide. 1 evening for a moment to results of 190', the shareholders will be the heavy petrol, are meeting with the recogni very glad to learn that the year has been tion they deserve. As we did not give you certain. other statistics, I take this op only propose to distribute on january trestan most prosperous one so far, and although we portunity of doing so. We have at present interim dividend at the rate of 5 per centiper a stock of crude oil of 35,039 tons, against. 30,505 tops last year; kerosene awaiting, we have the greatest hope that when the accounts are made up and presented for shipment; 19,416 tonn, against 19,784 tons- last

1906, should the amalgamation with the Royal year; petrol-5,233 tons, against 4,670 tons last

1utch Company not be completed, it will be year; and liquid fuel and residues 17,550 tons,

the pleasant duly of the directors to recém- against 8,794 some last year; or a total of 77.238 mend a farther dividend for the year. I now ions, against 63 613 tons at the same time last year, These stocks could have been very formally move the adoption of the report, largely augmented had it not been absolutely necessary to destroy upwards of 39.500 tons in The motion was secooded ^by‹Mr;/A‚V. D. consequence of insufficient off-take and lack of Best. Mr. Powell asked if the offer which the storage. It is intended to convert the bond thairman had made to the shareholders would indebtedness of the Nederlandsch Indischehold good ntil the agraiment was signed,

The Chairina 'No, we have to specifically shares, and to increase the capital to ff.20,003,200, agree to give those thares, and we have given. Industrie en Handel Muat chappij tevordinary

But in to Safely Explosives Co. (1904 Ch. at p. 235) the same learned Judge, then I. 1. Vaughan Williams, said that it was not dis puted that an amendment of a proof ought not to be allowed if the position of the parties has been altered since it was put upon the file: and the same principle is alluded to in the judgment of North J. in re Lesier exp. Huddersfield Bank. There also the creditor had voted and the learned Judge said: "No doubt

he might by his vote have succeeded in so alter. ing the position of the Company that it would be unfair to say that he should, be released from giving up what he has given up in con- sideration of securing the advantage which he had his vole,

1 do not find vete really came to anything. The vote he gave did not alter the position of things so as

to retain it if he has completed it without to entitle the creditors to hold him to the vote notice of the petition. Then in the and for that reason. ม

sub-section the meaning of "completing an So it is clear that even if there has been in.execution" is given, which naturally varies sidvertence, if the effect of the vote has been to according to the kind of execution resorted to, ccording to the kind of his section there is beld to it with the result that he will be held nothing which links it on in any way with the person whose rights are vested in him, if it fored by the plaintiff by reason of the on- this being rendered necessary by the constant the shareholder, the option of "contributing. alter the debtor's position the creditor will be

posed to add. "unless things can be put there is no word in either which refers to the cause. It is not advisable that those people who lawful act of the defendant in causing the expenditure demandéd, in order to make the their portion up to 31st inst. Thoze 'who do

'

bankruptcy pefit on: that is, he shall be entitled

to have abandoned his security: but I am dissection 30, which deals with secured creditors;

straight."

other, or from which a reference to the other

to have been fitly considered by the Court. The words are subject to the power of the Court to extend the time, the Official Receiver, or Trustee, shall within 14 days after receiving a proof, either admit it, or reject wholly or in part, or require further evidence in support of it and shall notify the decision to the creditors at the next general meeting I may deal at act with the assumed that not prove cons are "directory," therefore to be strued too strictly. I agree; but I understand. the meaning of this to be that they are direc tions to an officer of the Court, and that the consequences of slips, on his part will not be pressed too hardly against him or rather against is possible for the Court to set the right, be

ngth ult.

In Summary Jurisdiction at the Supreme Court this morning, bis Honour Mr. A. G. Wise, Paisae Judge, presiding, the case in which Cheang Lai of No. 7 Lammond's Lane, contractor, sued Cheang Tsui of No. 19 Elgin Street for the recovery of the sum of $1.000, false imprisonment alleged to have been suf being damages is the nature of trespass by

THE DISCUSSION..

not decide to take it will not be able to do so

Mr. Howell: And if they go in for their por tion on 31st inst, how long will it be before you let them know?

come

The Chairman: The agreement has to into force on janit, but we could not let them

you that the number of shares that the direc

J

་

are, directly and pecuniarily interested in the plaintiff to be arrested on 15th September most of our fields. During the current year Now let us see what happened in this case. could be inferred. They deal with a different prejudiced by errors which he may commit

Trustee's conduct of the proceedings should be and confined in prison until the 17th idem, the company have spent on refinery extensions, afterwards,

when he was allowed out on bait until the storages, &e, in Borneo £119,396 gs. 6d., and If Mr. Ho Tang had voted at the creditor's order of ideas, the first with creditors who hold the Trustee has simply failed in his duty, that 25th September, and then again confined in on exploration accoust £1,1 4 198, whilst meeting for bis debt, less his estimated value unrealised securities; the second with creditors of his security, the special resolution would who have already enforced their claims to the is all (see Day J. in the Sissling, 3 L. 1. 967) prison until the 26th, when he was a sin let they have written off in profit and loss for out on bail until the 9th October. On that amortisation of these items £53,707 45, being have been passed. The figures are conclusive full try process of law-its marginal note night But this does not mean that therefore the ex- Do this pelat.

As to this there is a point in the procedure however centres round the fact that possession ignored, and the officer may act in complete Court and charged with embezzlement of the this company. They have also added 16,207 krow until everything is s'gned." may.... tell.

well He "Beati possidente". The whole idea press provisions of the statute are to be date he was brought up at the Central Police strictly in accordance with the scale agreed by of them. The key to the sum of S14 from the defendant on the jobs, to reserve, raising this figure to 223,305 which I think needs improvement. He wrote Now I come to the different forms of execution position is the meaning of the words “receiving January, whereas plaintiff was not and never 45. 104, carrying forward a balance of £1.834iors have placed at their disposal so far is ... which was adopted by the Official Receiver, of the debtor's property has been obtained. disregard

de'endant as 1. gd. This increase in the company's capital. on the minutes of the meeting:-

A proof" After the Trustee had been appoint- was a clerk or accountant Resolved as follows: Mr. S. Bisney, proxybe obtained.

the different ways in which possession mayed the Officii Receiver handed over to him all alleged by bim. Plaintiff was discharged at is rendered advisable in consequence of the 6,378, and it does not help much towards the

500 co the papers, including the proofs which he had the l'olice Court as defendant failed to appear dividend upon the shares, owing to the nomin

Mr. Howell: And supposing this agreement for Mr. Ho Tung dissenting, that the debtor's to some cases, owing to the nature of the pro- himsell received: and it was treated as if the to prosecule.

ally small capital, appearing too high, and if it is not signed before the end of the year? The proposal for a composition credit" forth set perly, possession cannot be obtained absolutely date of the Trustee's receiving the proofs from

Me. E. Lang, of Menirs. Deacon, Looker and were allowed to continue in its present state it

Chairman Then you are free. Mr Howell: above be accepted."

but only figuratively; in the case of lands, it is the Official Receiver was the date from which

Deacon, appeared for the plaintiff, and Mr. C.) might lead to the impression that an unduly

Does the option lapse or not? The Chair- This looks, and both Council for Ho Tung by the attachment by probibitory order with due the 14 days were to tun. (See the letter of the

F. Dixon, of Me. ¡John Hastings" office, re- | high return was being obtained on the sharei,

man: It lapses'ent rely, and I. at first thought this meant that the re registration in the Land Office. This is no Solicitors for the Trustee.) I am of opinion presented the defendant.

which is not the case, accing the very large. When this case was called on Tuesday lastnim really invested in the basiness.

»Mr. J.› A. Chartier fald that he could not- salation having been adapted, the condition of less a form of execution than seizure and safe that this is wrong Receiving & proof" means

possibly see how it was that the cost of issuing «. 18 (1) had been fulfilled and that this was a of moveables; but owing to the fact that the

BORNEO TROPERTY IMMENSELY VALUABLE be preference shares could come in as an "Special resolution." But it was not. In sale of lands is not so expeditious as the sale receiving it from the creditor, and is a tech- Mr. I ang asked for an adjournment as his client had not turned up. Mr. Dixon opposed,

It was my duty to inform you on previous attel. It was certainly a Insi, and, în his order to be a "special resolution" it must be of goods and chattles, the execution, is deemed nical expression, used for bring the date on

which a creditor is said to have proved. This aying it might go on being adjourned for ever

"occasions that the kerosene which we are able | opinion, it should have been put as a debit,“ voted by ₫ in number and value of those to be completed by the attachment, which is established, the rest follows easily. The Cfficial and he must ask that the case be struck out. present and "entitled to vote. This con- the equivalent of seizure. There can be no Rec

His 'Honour: No, I will adjourn this case

to make from Bornen oil is not what is called | He would like to know, also, in regard to the Receiver and Trustco are used in the alterna

standard quality, and the advantages of selling Petroleum Producte Acties Company, whether- dition was not satisfied. Some of the difference in the application of the principle of live in this sub-section as throughout the Or a second time your client ought to have been it mixed with the better grades supplied by the amount written off actually covered the claims having been disallowed for the the section to different kinds of property; what dinance; either of them may acceive proofs, here. The case in struck out with costs against other producers to the Asiatic Petroleum Com whole of the for minds. The would further purpose of voting because the crediton is required in order that a judgment creditor and thereupon within 14 days, may do what the plaintiff.

pany would be very considerable. I cannot like 10 goow if the board had already sold the were not present either in person or by should retain what he has got is something to the sub-section enables them to do. Some

100 clearly express my own conviction, and four meamers, and, if not, kad iker ajada. proxy. But it would have been satisfied if -show, that he has got it something which has

proofs Mr. Ho Tang bad not voted for the full amount ousted, the claim of the debtor, if not to its and some by the Trusies: and in respect of were received by the Official Receiver,

that of my colleagues, that our property in sefficient provision to cover any possible tous. Borneo is an immensely valuable one;" but the The Chairman 1 am very pleased to reply, of his debt. He has, therefore, by his vote possession as owner, at least to his exercising the proofs received by them respectively

fact that our business depends upon one terri- and 1 may say that 1 welcome such wacitions., -prevented the special resolution from being his rights as owner. He is prohibited from either of them might have called on the

tory and one refinery only has led us to favour. The cost of the preference shares in properly .... passed...

dealing with it as owner, because in the view creditor for further evidence, and either of With regard to the Official Receiver's pro- of the law execution upon it is deemed to becom them might admit or reject. There is nothing

ably consider, an amalgamation with the Royal | charged, and is represented 'by "the_asset"of Dutch Company, which, among other advant» "¿1,000,con sterling which the company is wot codare: think it would be better that the fact pleted when he has in fact been dispossessed, in the language of the sub-section which

ages, vlll give us an insurance food against liable to repay; that is to thy, they “sstfed

' should be noted whether or not the require. But it is said all this goes to show that in authorises the Trustee to whom Froofs ad-

Tapton, 37th November ʊment of #: 18 (1) has been complied with. respect of lands against the owner of which amitted by the Official Receiver have been

When H, ex-Viceroy Shum was leaving any possible falling-off in the production of our shares for locooo, and they have, in my own fields, and, what we look upon as a more | opinion- because they nís very strong-esitten Bot it was said that even if it had been probibitory order has been granted the judg passed on to act as a sort of Court of Appeal Caston, he declared himself to be a poor probable danger, the destruction of our storage all the cost of the preference shares out of their

· prased the schema wat not such as the Court ment creditor is a secured creditor, because from the Official Receiver, and call for further man," It has therefore been surprising to leara would bare approved.

and refinery by fire, for in these respects the profits. It does not saved Asian salat ; thoss this creates a charge on the land, and therefore evidence to substantiate them: for this simple of the Canton Waterworks at Tuang Po that he Text Company, in fact, has gradually absorbed and they have their earning powers. The fict here that 11. E Shum has wired to the manager Royal Dutch are in an invulnerable position. 1,000,000 shares present 1,000,000 of tipital, pie Nów sou what follows:-The Trustee who swas appointed 13th Sept. 1906, Immediately

"secured creditor. Within the definition of reason that the period has gone by. And so will take up $300,000 worth of shares in that |

This definition is "a per far as the Trustee is concerned' there is no saerah papers were handed over to him, pao son holding a mortgage, charge or lies on the reception of proof" by him from, which the Company: The directors of the company have nearly the whole of the producing and refining that the compas bare written: that off out of corded as if the requirements of a 18 (3) had property of the debtor or any part thereof time, run: When once the Oficial Receiver taken this offer into consideration, and are dis- companies in the East, viz-the Moeara Enim, their plofits only shows that they am very

the Moeli Ilir, and the Sumatra Palembang strong. They not obliged to do in not been complied with—that is, that the re- as a security for a debt due to him from has admitted a proof the simple powers of the cussing the advisability of accepting so much tams creditors “ who had proved! This on to the position of the judgment creditor accept Sir H. Berkeley's final argument haiebélder, an AAR Ears of the cloud sport of three-quar, the debtor. No part of this definition fit we officers are exenasted in mosey and allosting so many shares to a single Perimeter flance with them in the Asiatic tamelinte te combibing orstops and the

Company, Limited, we have been-Income-Tax Commissioners, brygialeky, able to realise how carefully and ably their fused to allow us to consider liATIONS is expressly referred to in Mr. Lowe's affidavit dealt with in section, 53, How Cap.io/mely to Mr. Slade, thatswhere Truses!

business has been conducted, and at the our profte. © They made us write bu dari of tut November". He ways * The reason why person who bas completed execution against had weka appointed; he is the inccessor in tide. In a fire which broke out at Hunghom "on proper time, we shall place before our shares to the Fetróleum Producis Actien CÜMLED The scheme of arrangement indationed in park • debtor be said to hold as rechthy for or the Oficial, Receiver 2 but that makes the Mosday two matabeds were destroyed and dame holders full particulars of that company's loss, that is more than covered by the mea graph 4 of the debtor'a andavit (ie, the scheme debe? Nor can the attachment by probibitory point, plainer) for a successor in title cannot, aga to the extent of $1,100 done,

accouņu. Their principal wealth in In' their which we have put aside. The four sta

וני

that this brings

A BIG OPPER.

FROM A "POOR MAN."

[From a Correspondent;)

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