1909-08-28 — Page 11

The Yarn Question.. AN IMPORTANT JUDGMENT.

THE CHIEF JUSTICE AND NATIVE COMPRADORES.

In the Supreme Court, last Monday morning, Sir Francis Figgott (Chief Justice) and Mr. H. BJ.Gomperta (Polina Jadge) prosiding, anim- -portant judgment was delivered in the case in which Messrs. S. J. David and Company appealed against the decision of the Chief Justice of the 23rd December last given in favour of the firm's late compradore (Mr. Chan Ut Ohlu) in the action which the plaintiff ärm brought to recover the sum of $641,815.67 said some yarn transactions. The defendant entered counter-claim to recover the sum of $55,000

THE HONGKONG TELEGRAPH

pradore in pursuance of the mortgage; and the Occasions when these demands may be made are indicated in the provisoes for, redemption. This brings us to this point, than even granting that the making of the demand only indicatos that the time has arrived when the compradore, must redeem or förisit his property, he must give up possession.

be

The demand may be made in respect of Chinese losses. There is no indication that the demand is to be limited to the estimated valus of the security: therefore this further point must be noted, that the demand may of the full amount of the Chinese lossen what- ever they may amount to, and that the con- dition of redemption is that the compradore must pay the foll amount of the devand how ever large if he wants to says his property. The point is worth noting, because a family many lakhs.

and if a security, adamecurity, mortgage then a security for the amount owing. There is therefore a statement in the deed that the moneys demanded are owing in ́ ́virtus of the demand; they cannot be owing, except by the person who is called on to pay the money by the demand; this reference to the admission in the deed, although it is made in document which is not itself a dead, shows clearly, If the mortgage does not itself show it, that the Intention of the parties to the deed was that the mortgage was a security for the payment by the compradors of moneye so demanded by the firm and so owing by the compradors, on the strength of which another and farther security in cash Wai given by the agreement.

SATURDAY

AUGUST 28 1909.

HONGKONG AND. SHANGHAI BANKING CORPORATION.

dially approve of the donation to the proposed University (Applausa.)

The mation was carried unanimously. Mr. A. H. Dagh proposed, and Mr. W. EL. Wickham seconded, that the election of Mr. 3.: W. Bandow as a director be confirmed. :

Agreed to,

The Chairman:-That is all the business, Gentleman; thank you for your attendance, Dividend warrants will be ready on Monday.

The meeting then dispersed.

317

THE UNITED ASBESTOS ORIENT- AL AGENCY, LIMITED.

ANKUAL MEETING.

The thirteenth annual general meeting of shareholders of the United Asbestos Orizatal Agency, Led, was held in the office of MARTA Dodwall & Co, Ld, last Monday afternoon, for the purpose of receiving the report of the gener al managers together with a statement of ac- to 31st May, 1909, and for the election counte LOWERING Of bank of jaPAN of an auditor. Mr. E. G. Barrett presided

Others present were-Messrs. A. Ritchie, J... D. Auld and G. R. Edwards, Secretary,

The Secretary having read the notice con- vening the meeting,,

** INTEREST.

› HALF-YEARLY MERTING, The ordinary ball-yearly' meeting of the shareholders in the Hongkong and Shanghai Banking Corporation was held at the City Hall, at noon, last Saturday, for the purpose of receiv. ing the report of the Court of Directors, together. with a statement of accounts to soth June, 1909. The Hos. Mr. W. J. Grosson (chairman of There were also present: directors) presided, -Mesirs. H. E. Tomkins (deputy chairman), Į W. Bardow, E G. Barrett, O. S.

Gubbay, W.

REASONS FOR THE ACTION. Helms, C. R. Lenzmann, E. Shelllm, R, H. A. Slebs, H. A. W. Sinde Shewan,

The Bank of Japan, announce that the rates of interest charged by the Bank on advances (director), 1. R. M. Smith (chief man.

and discount of bills have been lowered by a Machado, W. Dunbar, W. E. Clarks, W. Farcell, A. Findlay Umith, Ho Kom Tong, Ainstant. The rales now stand as follows H. Ough, W... Wickham, W. H. Potts, J. W. 6. Bonnar, J. Barton, H. N. Mody, T. On advances as security other than Government bonds and on discount of bills secured by other than Gov. Rose, H. Percy Smith, R. Mitchell, J. F. Cox Hdwards, Hon. Mr. Murray Stewart,

ernment bonds... 30n 1.8 than the average for the last few years but the N. M. H. Nemaree, R. H. Crofton, S. J. Michash, P. G. Potts, T. F. Hough, F. Paget Oa discount of commercial bilis drawn Heit, Lau Pan Chis, N. J. Stabb, A. F. War-, rack, T. M. Kuott, F. G. Carroll, H. G. Joas, Taylor, P. de O. Morriss, W. O. Turner and A. Bryér. Chau Tong, Wong Leung Him, A. Forbes, W.

The Chairman said: Gentlemen,—A coppofTM the report and statement of accounts having been sent to all shareholders and published. In

to have been 'the amount of losses incurred in house to a Chinsman may be worth to bim la this Court below should be reversed, and ager), Ho Fook, L. Berindoagos, 1. Meris per Y100 poť day from yesterday, the rgth the newspapers i proposa with your consent to

to been deposited with them.. The judgment was avery lengthy ons indeed, covering about twenty sheets of foolscap. The result of the judgment was that the decision of the Court below was reversed, and judgment entered for the plaintiff's with costs.

runs that

Later on comes thei power of sale, and follow lag it there is this proviso, on wblet everything turns. Read sbonly it is as foilors: Frovided that the mortgagee shall out of the moneya arising from the sale frat pay the expenses incurred, and "then retain sach, moneys in or towards satisfaction of the mansys for the tima. being to be owing to the firm, by virtus of any such claim or demand as aforesaid, and then pay the surplus (if any) to the person or persons entitled thereto."

certained

which may thereafter be as

This in a class in a dead signed by both parties, and any statement. which it contains, must bind the parties to it; and the statement which this proviso seems to me to contain is, that the moneys owing to the firm in or towards satisfaction of which the proceeds of the sale may be devoted are owing to the firm by virtue of such claim or demand made by the firm. After much perusal of these documents, these few words stand out as furnishing what we are looking for, reducing It to the concrete fact that the demand for the payment of Chinese losses which is referred to in one of the provisoes for redemption, and the satisfaction of which is a condition of redemptión, does also create ao obligation to pay the amount of the demand, because it says that the money is owing to the firm, by virtue of the demand made.

I was therefore of opinion that the judgment judgment entered for the plaintiff with costs, of the Court below and of this appeal.

The Pulsus Judge concurred, and a stay of execution was allowed for a fortnight.

Mr. Duncan McNeill, a Shanghai berriater, with whom was Mr. D. J. Alabaster, instructed by Messrs. A. G. Jackson sed H. J. Gedge (of Mesars, Johnson, Stokes and Master) appeared on behalf of the appellants. Sir Henry Berko- ley, K.C., assisted by Mr. M. W. Siade, instract ed by Mr. P. M. Hodgson (of Messrs. Ewens and Harston) represented the respondent.

ANIUNG-MURDEN RAILWAY.

AMICAPLE SETTLEMENT REACHED. Regarding the question of the reconstruction of the Antung-Mukden Railway, Mr. licin, Japanese Mixlater to Chian, on the 6th lost, notified the Chinese Government that the work of reconstruction of the line would be forthwith undertaken. To this intimation the Chinese that China did not insist upon her objections Government replied, on the 7th last., stating

to such rectification of the line as was found regarding the change of the existing gauge of The reply also to be technically necessary. fication of the line might be submitted to the expressed a desire that the question of the recti. Commissioners to be appolated by the two countries. Mr. jain, on the roth inst., in pursuance of instractions from the Japanese Government, addressed a Note to the Chinese Government pointing out that the proposed change in the location of the line was not only confined to what was absolutely accessary from was, in fact, based technical considerations bat it on the result of the joint survey already made by the Commissioners of both Government. The there would be no necessity for dispatching ing surveys which had already been completed joint Commissioners for the purpose of repeat and consequently that it was desirable that the Chinese Government in view of the urgent necessity for a speedy reconstruction of the line, should at once approve of that portion of the line which has been afready survoyed, and agreed upon by the Commissioners of both Governments,

The Chief Manager having read the notice Convening the meating,

1

The Chairman proceeded to read the report, at the conclusion of which be said :-

Gentlemen,-la laying before you the state- meat of Accounts for the past half year, 1. am able to report any marked Improvement in the demand for money for trade requirements; case has been the prevailing tone of the money markets throughout, and it has been a matter of some difficulty to find profitable and suitable Under these somewhat adverse banking con- employment for all the funds at our disposal.

general result attained will be received with' ditions, your Directors feel assured that the satisfaction.

Your Directors recommend payment. of the usual dividend of a per share, and the carry ing forward to the current half year of an amount similar to that brought in from last account. In addition to this we propose placing 57 lies to the Silver Reserve Faad, and in thus adhering to old traditions, by continulog to strengthen our position,. I am confident we may look for your support and approval. (Applause.)

Minimum.

on Tokyo, on advances on the 10- curity of Government bonds, and on. discount of bille secured by Govera ment bands.

48

tako them as read. The net profits for the period under review show a considerable falling off as compared with recent years, In fact they less than they have been for any year during the last ten. Our turnover is vary slightly less

are

percentage of profit in considerably less. This Is accounted for by the keen competition con sequent upon the continuation of the depres sion in trade wa have been experiencing for 1.5so long, Business generally in the Colony con

of On discount of commercial bills drawa

tianes dull, but I hope shertly to sen signs on other placed correspond.

son 1.9 Improvement in this direction. Our stock bas On current overdrafts and

been very carefully checked and valued and ..... 100 1.9 ence overdrafts

in excellent condition. You will note, from the Mr. Hijikata, Director of the Business De

accounts that the value of our material at the partmant of the Bank of Japan, gives the fol threa ports, at which we are established in--- lowing reasons for the lowering of the rates of interest :-

good less than the previous year. We have been able to considerably reduce our stocks by introducing a system whereby the parts draw ou one another when necessary, Instead of I 'regret each part keeping, large stocks, the profits this year are insufficient to pay a dividend on the founders' shares, but trust in future we shall be able to pay the same handsome dividends on there shares na wa have in recent years: With these faw remarks now propose:That the Report and Ac counts be received, approved and adopted. After this resolution has been seconded I shall be pleased to answer any questio

Mr. Auld. I have much pleasure in second-

The revised Customs tariff of the United States has been passed by the two Houses of Congress and is now finally settled. It is evi- dent that the ravision of tariff, does not affect trade of the United States will increase hence the trade of Japan, and it is anticipated that the

a sound condition and basiners will gradually revive. In Europe the money market remains forward. The money market in America is in

very quiet, the central banks in each country being fully supplied with reserves. In the East

the negotiations for the solution of the differences between Japan and China were in a critical position, but there is now every prosing the resolution. pect of the questions being solved by degrees In Japan the result of sericolture this season bas proved quite successful and the rice barvent also promises to be good one. Thue there is no cause to fear that any financial trouble will arise in the near future. There are no political or diplomatic factors alther in the East or in the Wart likely to give rise to any

Hance the of an economic change abroad. rates of interest have been lowered,—Jupan Chronicle.

wah that when it was said in the agreement clause is merely part of the machinery by which Note added that, under these circumstancev, and, though our Dead of Settlement calls for troubla. Nor is thara any violbla Indication

The Judgment of the Chief Justice, in part, This is, ac appeal by Messrs, S. J. David & Co. from a judgment which I gave for the de- fendant in an action brought by them against Chao Ut Chiu, the late compradore of the firm, to recover a sum of 6 lakhs of dollars in respect of losses fucurred by the firm is their dealings with their customers, for which, as they alleged, the defendant in liable us compra dore under bis agreement. This agreement is contained in two documents of even date 30th January, 1902, the first, a mortgage of certain leaseholds by the defendants and an agreement by which an amount of $55,000 was deposited by way of furnber security. Some thing However turos ou whether this is an ac- curate description of this document. The mortgage contained no personal covenant on the part of the mortgagor to pay these Chinese losses; it did however contain among the con dilloas of redemption, one which made the payment of these losses such a condition. In the Coart below 1 held that in the absence of "auch a personal covenant, and in the absence of anything which was then pointed out to me, In the agreement which, by means of crois re ferences, could be construed into such personal covenant, the dafendent was no lable at common law; that is to say, that the plaintiff had no rights other than those which the mort "gage and agreement gave them as such, Am. plifying this slightly, the effect of my judgment that the defendant agreed to pay "money due under the mortgage," the omission of the por somal coronant rendered this provision nuga tory lo so far as the Chinese fosses were con comed; because there was no money dos ander it: and poiside it and, further that as a condi- tloa of redemption is not a covenant to redeam, go Covenant to pay these losses could be derived from the existence of such a condition of redemption in regard to Chinese losses: and the condition itself did not create an obliga. tion to pay these losses. The argument press ed upon me was that what was stated in the mortgage as a condition of redemption became evidence of the obligations undertaken by the defendant as compradore. But I did not ac- cept it; for this reason: admit that the words in the agreement. Mr. McNeill's argument, which may be stated very concisely thus:-there may be a demand for payment of these Chinese lostes, and there is to the words used an ad- missing of lability to pay them--~~~ ehsan na might he based upon this clause of the il might lead to the mortgage, and seeing that

acounty fivery and wageant in the Court below, I felt this difficulty: the grounds tree that it adopts the final point in Mr. McNeill's argument, but that if it did in fact travel thence to the defendant's Hability; it did by a path not very fully explored. The ap parent strength of an argument very often varies according to the palat of view from which it is looked at; and bere it seemed to me that taking this point as one of pure construc lon, and setting it up by itself without intro dactory matter, it would be possible to look st It more thoroughly, and to examine it more dispassionately than had already been done. We therefore directed further argument on this point: regardleg it as I say as a mere question of construction of language, on the basis that we had decided against the plaintiffs on the Impiled obligation urgament, and also discard- ing the argument as to the law applicable to the intention of the parties.

The only doswer which had been suggested to this inference is not satisfactory. It is this: It may be that the money is owing in virtue of the demand, the money is not owing until the demand is made, but it is not owing from any onet it may be owing to the mortgagee, but not necessarily by or from the mortgagor, or indeed anybody: It is owing on the security of the land. The mortgagee cat take the money owing out of the proceeds of the land, and the the land is made available as security: the de- mand sets the machinery going, it creates the occasion for the redemption, and nothing mors. I admit at once that it would have been very simple to have said "owing by the compradore and this sentence is in fact used in clause 8 of the agreement, Batin order that the legitimate inference from the words in this proviso may be rebulled by this argument, we must be satisfied that these expressions "the money is not owing from anybody," "the money is owing on the security of the land" have any defuito meaning.

The Chinese Government, on the 13th inst, sent a reply from which the Japanese Govara ment was justified in assuming that China was fully prepared to recognize the immediate accessity of reconstructing the Antung-Mukden line and that she desired to render all necessary co-operation in carrying out the undertaking. The Japanese Government thereupon, in cop sideration of the friendly relations between China and Japan, instructed Mr. T. Koike, Ja panese Consul General at Mukden, to sign a Memorandom with H.E. Viceroy Hsl Liang,

1. The sema gango as that of the Peking Tandum to the following effect was afgoed:-- Mokden railway shall be adopted.

a. Both Japan and

It is not my intention to detain you on this custom for Banks only to bold meetings anoual- occasion with a long statement. It is the usual

the one held in August should be mainly.con- a meeting of Shareholders twice a year, I think fined to passing the accounts, leaving a review of trade and business generally to be made at our meeting in February, when fuller data are available.

However, before turning to the statement of me.to refer briefly to the subject. Assets and Liabilities, you will perhaps allow

We are still waiting for the long expected tura of the tide. It cannot be said that trade in the Far East is yet la a flourishing condi- tins, but there is promise of Improvement la soms directions, and I see no cause for taking a pessimistic view. On the contrary, news from India of the climatic conditions, upon which particularly in that country so much de- peads, is favourable; silk crops la both China above, the average; and new file has beeD and Japan aro reported to be well up to, if not

the cultivation of rubber, & pro Infused into the Straits Settlements by the auc doct which bids "I hopë, a permanent-addition_to_the_exports

region. of sat

CHINA'S Naval re-orgANIZA- ZION.

antive

The motion was unanimously adopted. The Chairmad proposed and Mr. Riichie seconded that a dividend of 15 per cent. on the Ordinary Shares be now declared out of the net profits of the undertaking for the twelve months ending 31st May, 1909, and that such dividend be paid to existing members, on this

date.

Mr. Richie proposed and Mr. Auld second- nd the re-election of Mr. W. H. Potts for the ensuing year at a rempnaration of Srgo par

sonum.

The motion was adopted.

The Chairmen; This concludes the business genilemes dividend warrants can be had on application.

OIL-SHIP ON FIRE.

RUMOURED INCENDIARISM.

Sah Chen-ping. The Viceroys of Obibil, Lid before proceeding far the vessel ran aground.

Feeling the force of the argument which had by the land and lowing-do-the-security of the and, accordingly, on the 19th last, a Mempi | cess attending air to become à valuable and, Manchuria will also be included in the Council,

DRAFT SCHEME APPROVED. According to the N. C. D. News, report says that plans for naval re-organisation, as proposed by the Navy. Commissioners and by the Ministry of War, have been approved drawn up the work is to be spread over seven by Decree. According to the programme years, beginning from the present year. A Navy Council will be created in Peking to consist of the Presidente of the Ministries of War, laterior and Finance, besides the Navy Commissioners, Prince Taal Haun and Admiral klang, Hu-kuang, Mio-che, LiangkULDE

For the first year's work account will be Lakon of

of all the present ships, and ordasu will. 4th class cruisors, Naval bases for the North ero, Southers, Fokien and Kwangtung waters will be inspected, and the naval schools at Tientsin, Nanking, and in Fokies and Kwang tung will be expanded. Stops will also be taken to re-organize the different dockyards.

In the second year the following measures are to be carried out :-Formation of fleets; construction of 3rd class crusiers, transports, torpedo-boats and destroyars; construction of

division of territory into districts for recruiting aval bases; organization of naval and gunnery

marines. schools; preparation of a naval budget and

for doing so had not been fully argued: it is legal entity, represented by certain person, approve the who China shall recognize and These factors must all have a beneficial effect ba given for the construction of and, 3rd and.

5. Obina shall instruct the local officials along the line to give every facility regarding the execution of the work.

I cannot accept the argument based on the precedent in Prodeaux of a mortgage by the personal representative of the deceased given to raise money for administration purposes, which contain an express covenant that they. shall not be personally responsible. It was said that the net result of this form was that the money was owing to the mortgagee but not by or from anybody that the money was secured land, and that there was no personal liability on anyone. The answer is that the money is and is liable; and lent to the estate and the estate the law regards the estate of a deceased as a

line as already surveyed and agreed to by the Commissioners of both which is capable of incurring liability but it la a flability limited to its capacity for payment, Governments, but the location of that portion of the line, from Chen-Hsiangtung to Mukder, independent of any personal ability of prell-shall remain to be decided by mutual con persons. And this brings us minary discussion on the meaning of securing ference between the two countries.

3. On and from the date when the Memoran the performance of an obligation by mortgage, dum is signed, negotiations for the purchase and the common law liability which may or of land and for adjustment of all other detalls may not exist concurrently with It.

But looking at the argument on its merits it shall be instituted,

4. From that time, the day following tbs is unsound; for the redress which may be ob talaed in the security itself, and may be enigning of the Memorandum,that is to say, from forced to such a case as this irrespective of the the day after the negotiations above mentioned fact that there is anything owing. The demand are instituted, the work of the reconstruction is sufficient, and the demand determines the shall be accelerated. amount which must be paid, not as a debt, but to prevent forfeiture of the security. The whale point of the defendant's argument is that there is no money owing, only that the power of sale may be exercised, in respect of the Chiapse losses. Therefore the words "money owing are inappropriate to the defendant's own argument; and they must mean some- And whereas in order to further provide thing else. The only possible meaning is the natural one that on demand made the money the sald security mentioned in the said recit.

to the amount of the demand is owing by the No little amusement was caused in the ed mortgage the-compradore hath deposited with the said firm the sum of $55,000 (the compradore, Putting this in another way, the Supreme Court last Monday afternoon in the receipt whereof the said firm deth bereby word 'owing' is inappropriate to a mortgage course of a criminal conversation case reported acknowledge) to be held by the said firm which is merely given by way of security: the elsewhere by a breezy witness, who, besides be upon the terms and conditions hereinafter obligation secured by the mortgage bas poting refreshingly facetious, showed evident signs been fulfilled, and the rights under the mort. of a strong inclination to feel his way carefully appearing." What is the "said security"? The word gage can be enforced; farther, a declaration among the shoals and rocks of a lawyer's quas security is not mentioned up to that polot; that the money is owing is not merely super- tions. The cause of the lively proceedings was fluous but inaccurate, because it is not owing the extremely delicate question ofa young lady's but as it is the security mentioned in the mort gage which is recited previously, and which unless an obligation to pay it has arisen outage, when the following dialogue ensued be

side the mortgage or la declared in the mort; tween the cautious one and Counsel.;- we know was given in order to secure the

gage itself: therefore the recital that the money Mr. Slade-Did Mrs. Mitchell and Mr. performance of the compradore's dutles, it can

Lemm travel on your ship alone? is owing means that the money is owing, baly meas, so much of the previous recitals as

Witness-No. Miss Mitchell was with them. I am therefore of opinion that there is here tlearly referred to something which was

a clear statement made by both parties to the How old was Miss Mitchell?-I never ask security; that is to say, the property above referred to given by way of security; and indeed, that when a demand is made, the fact of a young lady's age. It is a breach of aliquette. view of the foil recitals in the agreement up to making the demand creates the obligation to Can you guess her age -It is so difficult to that point, the sentence can only mean in pay. It is not necessary to go to the extent of tell a young lady's age. They fake themselves order to farther provide the security mention. saying that these words operates as a mort- up so.

It Is sufficient to say I know they fake themselves up horrid. But gaga covenant to pay; od in the recited mortgage."

was she a little girl ?—I should say she was that they are a statement of fact that the money is in fact owing, and being made in a about sixteen.. doed the fact cannot be daziad. "Having ar. rised at this conclusion it's not necessary to examine the interesting argument based on my decisions as to the way in which the in- tention of the parties to a contract is to be ascertained,

I have now to deal with the argument. I re peat the clause in the agreement to which 1- have already alluded

Now, the word "security" may be used in two vansen: first as indicating the subject of the security, the thing given by way of security 10. the land ; and also as referring both to the subject and object of the security: Le, the land as security for the performance of the sbilgation, think it is used here in the latter and wider sense: But it is said that this money is to be held by the firm upon the terms and conditions hereinafter appearing, and Itis ar gued that this is disjunctive that it dissociates the cash security from the land security, that It shows that the said security" means only the subject of the security, and that the cash is held as security only for the distles created by the agreemant, and therefore does not cover the same ground as the objects of the land security. I do not think that the sentence is as clear as it might be but I can only give the whole of it an intelligible meaning, Including the words part security already goforrad to, in cl, 8, by holding that the cash was given by way of farther security for the performance of the obligations secgred by the, mortgage, and that it was also held as security for the performance of those obligations which depend-

d solely on the agreement."

Now what is the security mentioned in the recited mortgage? that is to say, what is the obligation secured by the land giyen by way of security? Taming to the mortgage, there Hrefollowing the conditions of redemption, *this proviso. I take it shortly so as not to "Confuse the meaning "that patil the firm BERS' made some claim or demand,(whether the Naoust thereof be ascertained or not) upon the way pradora: ke may, hold and sajoy the pre- wed". The claim or demand - so donosis for payment upon the com•

It will be convenient If I now summarise the result of this judgment,

First, so far as the mortgage is concerned?~ There is no pational convenant to pay. Chibere losses. There is not sufficient evidence of any "agreement outside the mortgage to pay these losses, eliber from the recitals of the mortgage or aliunde. The mortgage itself does not imply the

Thare

existance of such an agreement or liability. The provisos for redemption cannot be con

strued into covenants to pay the Chinese losses, although they are referred to in one oft the

covenants.

no undertaking

to pay the Chinese losses in the agreement. There is however a clause fu the mortgage which says that demands may be made by the firm for the amount of the Chinese Losses, whereupon the proviso for redemp tion operates, and if the amount in not city is forfeited. In this clausa pald the security is. there is a statement that the money "des manded shall be due and owing to virtue of the demand I am doubtful whether I' could hold that this of itself is an admis. sion that the moneys sus dos, and owing, even.applying the law that a statement made by a party to a deed binds him, 10: But in the agreement there is a clause which maalžuly, roles so thin-ulávou, la, the

A LADY'S AGE.

HUMOROUS WITNESS AT THE SUPREMS

COURT,

+

She was a good-looking giri?—That's a matter of oplaton,

yes; can pass.

or

on the import trade, which has been in a more less depressed state for a long time past, sud, needless to say, any improvement will be wel comed by all who are interested to Eastern

commerce.

Comlag now to the statement of accounts you will notice that our Note Circolation shows, s usual at this season, a considerable reduction from the higher total which always rules jast before the Chinese New Year, while the amount of dollars deposited with the Government, as security, remains unaltered. Silvar deposits and current accounts are some 587 millions sheet last Juce, and nearly $5 millions higher over the figures which appeared in the balance than on 31st Decembar, which is largely altrl burable to money being temporarily placed in the Bank, pending renewed activity in trade. Bills Payable are Sr5 lacs lower than lo De cember, bat a similar amount bigker than in Jano. Fixed Deposits in gold, are practically unchanged, but Gold current accounts shows ▲ decrease of some £1,800,000, being about the amoont-mentioned at our last meeting as pro

Between the third and the savanth yourn the Government will build eight first class battle- ships, about twenty crafters, ten gun-boats and thres flotillas of torpedo boats. Distributions of squadrons will take pince, naval bases will be completed and transport arrangemente car. ried out. Over and above these measures the Government will recruit a force of marines, create an Admiralty Board, establish a new naval academy and take sach other steps as

ceeds of loans ecte bold by our London may be necessary from time to ilme...........

Difice. This is

on the other side of

the account by an almost equal reduction in on 31st December, At that date the amount Bills Receivable, es compared with the total stood at a much higher figure than on any previous occasion, which was chiefly due to the large amount of bomeware of sadiscounted

Cash, and Ballion lo baad and in transit; by our London Office instead of

Bills Discounted, Loans, and Credits stand at together. show an increase of $23 millions $3 millions, as against $120 millions on 31st December and S109 millions on 30th June.

Indian Government Rapen Paper; and Coa- sols, Colonial, and other Investments, are lowat than last ball year, but some 53,000,000 over The only other maller that I have to refer to in the figures of a year ago. the opening of our own office in Canton. It has been appareat, for some time, that Railway and other business interests there, called for further local banking facilities, and you will see from

JAPAN'S SUGAR INDUSTRY.

THE PROTECTION POLICY,

Fire broke out in the No. 1 hold of the barque about 11 o'clock on the night of the lath instant. Howard D. Troop In Yokohama Harbour at The vessel, which is engaged in the carrying of Standard Oil Oo's products arrived in harbour on the 25th ultimo, and has since, been discharging Coll After the fire was discovered the barqua, was towed towards Kanagawa, reports the Japan Herald, but As soon as possible after the outbreak the Captain's win, Mra, A. J. Durken, was trans- ferred to the all Jank Fina, and the hatches wern battened down. The damage in-us yet unknown, but fudging from the external appearance of the barque, would not appear to be extensive. Four thousand cases of kerosene, stored in the near batch, sscaped the effects of the fire, though at one timis fear were entertained for the safety of this portion of the cargo. At the time of going to press tha fire seemed to have been extinguished, but the tugs were still pumping water late the vessal as she lays off the breakwater, with a hoary list, A rumour prevailed that the fire was the out come of incendiarism, bat so far this has not been substantiated.

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Lafer news to hand from the Habour Police Office states that after the barque was towed to Koyasu, 'holes were made in the side of the veral in an endeavour to scuttle her, but the A attempt proved abortive.

Of the cargo, 89,400 cases of refined, petro- leum and 200 barrels of lubricating oll have bean transferred from the barning barque to the Customs compound, while 4,500 cases of refined petroleum are still on board the vessel. With regard to the rumoured Incendiariam, the authorities state that some friction had existed between the Captain and crew, and six of the crew were missing after the fire was dis• covered. An Investigation is to be held.

ALLEGAD RENEWAL OF JAPANESE BOYCOTT. DEMEANOUR OF CANTONESE CHINESE. The Japan Chronicle saya:-There are in dications that the boycott against the Japanese is being renewed by the Cantonesa Chineze. L it had been hoped the agitation following ou a result of the Antang Mukden Railway trouble. the Tatsu-mars affair had died away. The Nippon-mar, which left Hongkong on July seth, shipped a fairly good number of Chinese passengers and a considerable quantity of cargo, and it was expected that the Chiyo mare would be even more successful. Unfortunately, the trouble in regard to the Aptung-Mukdea Railway broke out at this juncture and seeme to have affected the Chinese is Caston aud Hongkong, as the shipment of Chinese cargo- and passengers by the tikiyo-mars was no better than when the late boycott was at [!K' height,

The Japan Chronicle says:-Japanese sugar producers in Formoss, are demanding 20 18- crease of Customs duty on sugar. They hold Trade is das to the development in the sugar that the great activity shown in Formosa

Formosa during the present season has industry. The total production of sogar i amounted to about 200,000,000 kin, comprising crade sugar. Three or four mora sogar com- 120,000,000 kin of syrup and 80,000,000 kin of panies are to be floated shortly. With these, the total production of sugar next year will be in- creased by 70 or 80 million kis, and, according to sugar producers in Formosa, the day is not far distant when 500,000,000 kin will be produced, They maintain that this development of the sugar industry is the result of the protection the report that a Branch Office of the Bask

accorded by the Formosan authorities and the was established on the 6th of last month. 1. But she was a fine giri, wasn't she?-Oh, have no doubt that, in time, it will prove a vain extent of the protection given in the future will

able addition to our list of Agencles.

have a direct bearing on the welfare of the During these proceedings, sounds of laughter. Before moving the adoption of the Report and wear industry. Protection by Customs tariff were heard in the Canit-room and even the Accounts, there is a subject to which I think must be based on the price of Java sugar, which ir a strong compatitor to Forme

A Japanese passenger on board the vessel, san sugar. At present the price of Formosan Chief Justice's features were seen to relax lato you would like ma to rafer, though it is not one

That affects the accounts now before us.

sugar is V1.50 bigber per 100 kin than that of on arrival at Nagasaki from Hongkong via A smile,

You have no doubt noticed the annonce- ment that on behalf of the Bank your Directors Java sugar. This difference in price is due to Keelung, gave some particulars in an Interview have agreed to subscribe 550,000 to the propos- the smaller producing expenses of Java sugarand with the Asaki correspondent at Nagasaki. Ha so long as the difference exists, between the said that while the steamer was lying at Hong. We understand the "Buffs" are holding their ed Hongkong University conditionally upon the first Aquatic Meeting at the Victoria Recres full amount required for the Endowment Fund producing expenses, It will be necessary to kong, a dinner was given by the officers of the being forthcoming. Without desiring to enter into continue to protect Formosas sugar," it is vessel, to which were invited Mr. Funston, the tomber's enclosure on Friday, the 10th Sop the controversy asto the desirability of a Univer- therefore reasonable, it is claimed, to fix a mi- Japanese Consul at Hongkong, H... Chang

nity at all, I would point out that the proposition nimum rate of protection of Formosan angar Viceroy of Liangkwang, and number

either by Customs tariff or by bounty. It is the the leading Japanese and Chinese officials The Corinthian Yacht Club also hold their first has been most favourably received by the Chi

more expedient to increase the dety, on sugar and merchants. He thought this had a good Aquatic Meeting on Saturday, the 11th proxeness, including the highest officials not only in

in the coming revision of the Customs tariff effect in conciliating feeling between the and from the following it will be noticed that Canton but also in Peking, as is demonstrated a very attractive programme, has been drawn, by the way they have come forward with sub and to protect the Japannes sugar industry in Japanese and Chinese, which had become way question. It may be noted that the Cffye scriptions, and if you will reflect on the pol-Japan Proper and Formia alike. In other ruffled as a result of the Antung Mukden Rail- tlon held by the Bank in Chins and its inti- words, consumers of sugar in Japan should be

Kawall. mate financial relations with the Chinese Im compelled to pay more in order that the sugar maru camed 228 Philippine labourers for perial Government for so many years, I am planters and refiners may become rich. sure you will recognise that we have acted in the best interests of the Bank and will approve, of our action accordingly, (Haar, bear, and applause.)

p

SWIMMING:

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1.-Two Langths Handicap. - (Open) 2.--Boys Race (Age 14 and under) (Open to Members' sons Boys of Victoris and Garrison Schools). ' S100 yards Championship. (Open),

Ladies Nomination Race (0.4.c.) S-Two Lengths Handicap (O.Y.C.)

Life Saving Competition.: (Open) 07-Water Polo Match. (Opes).

8-High Diva.. (Opad). Eatence fees $1.00 for each event Nos. 1, 4, 5, 6, &. Fifty Goals for No. 7. All Entrano (ass to accompany forms, filled in and address ad to Mr. Gay, Victoris Dispensary, or My, Kolver, Harbour Office Entries close ca Faturday, the 4th September, zgés:

There being zo questions the Chafiman moved the adoption of the report and accounts, Mr. W. Dunbar said:-I have much pleasure la seconding the adoption of the report and ac counts. The balança sheat reflects great credit on the management of the Bank, for during these dall times it can be so sexy task and am sure shareholders must seal highly pleased at the disposition made of prodes and mill-cosi

A Nagasaki dispatch reports that the: P.M. steamer Mongolia which arrived at Nagasaki on the 12th instant from San Franciico via Yokobama, carried 235 Chinese labourers returning from Amerion. They appeared, it is remarked, to be influenced by the Antang. leukden trouble for daring their stay in Naga. ski they refrained from purchasing Japannes goods,

LAMP LIGHTER'S DEATH; A coolie in the service of the Catholic Union, Caine Road, died yesterday afternoon, (zoth fast.) from injuries he sustained in an accident On Wednesday night last the coolle, while acgaged in lighting-ops of the lamps in the grounds, fell off the ladder and fractured his skull. He was conveyed to the Government (As far as it can be ascertained locally there Civil Hospital and died, as already, stated, are no indications of a renewal of the boycott. yesterday, Deceased was nosely thirty; your agulust the Japanese by the Chinees in Hong,