1911-04-14 — Page 7

SUPREME COURT. „HONGKONG" BUTCHERY-

CASE.

EUROPEAN ACCOUNTANT'S

EVIDENCE.

Boforo his Lordship the Chief

Justico, Sir Francis Piggott, at the Supreme Court Wednesday morn ing, the case was resumed in whieli John Tatam, runner of the King Edward Hotel, is seeking for the taking of accounts oLtho' roceipts and disbursements of the Hong- kong Butchery Company sineo 24th September, 1800, and for further or other relief. Mr. M. W. Slado, K.C., instructed by Mr. J. H. Gadliner, appeared for the

plaintiff, nnd Mr. Eldon Potter, in- structed by Mr. G. E. H. Boavis, of Messrs. Wilkinson and Crist, was for the defendant.

Mr. A. It. Lowe, naecountant, was rocallòd, Withoss stated that ho had done as lio was directed by his Lordship yesterday, and found that his Lordship was quite

THE

HONGKONG TELEGRAPH

That's the inference. Tho hold in Howell's house.At that whole amount of the los he meeting there were presentllowell, boon accounted for by cash ro-Tatau, a Chinese clerk of the But coipts. The presumption is that chory and witness Jimself, and the balanque ard wrong, i

also another gentian whom ho At this point, a question arose as to whother Mr. Blado. was on- titled to put in certain figures.

Mr. Potter objected.

Mr. Potter That's so, my Lord.

Witness-No.

a

FRIDAY

And if Howell is a person with

APRIL 14 1911

143

some control on behalf of the Butaro forthcoming and they showed case.

But asssuming that the books been patent throughout this HONGKONG UNIVERSITY. chory, you would be in a position that they were not kept properly?

His Lordship-So that you did

not act as attorney? Witness-No.

to secure that a small sum was-Not after 10 years, unless you patent to inc. The caso las na for funds for the new Hongkong Mr. Blade-It has not been In making a renewed appeal. accoptel on necount? I say ubnd the man who kept them. He aimod greater importance since Univoraity soliemo, the Fall Mall did not know and who was intro-solutely no Mr. Howell to my could explain anything in ques yesterday and it must be finished Gazetto" refers to the bands of duced to his as an Americau. As knowledge and I had all his tion. It is unfair to ask me to ex-by to-morrow. I can't sit here, horoic nurses and doctors who far as he would gather, the meeting papers-never had one cont in the plain it. No business man could. and eleck the nccounts till 8 have gone out from Europe was called for the purpose of going Hongkong Butchery. The only His Lardship-Do 1 under-that had always remained with him month was $15 and that $15 was not comparod them with the finished to-morrow. There's no-mention of the Tuck, who at into the accounts. The impression money that came to bim every amounts in the ledger and have Mr. Totter-The case will be Manchuria, and inakos special

But if you have shown the o'clock. ́ ́ ́

to help fight the plague in stand you to say that Mr. Slado was that the business was paid over to my wife as pocket amonnis shown in the cash book, thing more excopt my address Dr. Gnol Liang Tuck, who at cannot take out figures and put losing concern from the beginning. money. them in evidenco?

Mr. Slado-Are you an ac- countant?.

how can you say that those books and that of my friend.

Harbin has dono splendid work have been regularly kept? That is Lordship And the facts particularly gratifying to Eng was six months afterwards. "

to be considered and the dolivory had a brilliant medical course a

lishmen. Dr. Gnol Liong Tuck. Mr. Sinde→You havo shown in of judgment. If you so wish, the few years ago at Cambridge, and Mr. Slado-Can you toll mo this certificate the amounts re-accounts can be checked by Rohis countrymon may thank Sir when Howell romoved from ceived from customers in Febru

amounts correspond with ninounts ns been patent throughout, this tion work like this which the new

or oven midnight. you have not checked the lodgor

Mr. Potior-I don't wish that. the scholarship which gave him Straits Settlements, for founding to see whether or not the ledger-His Lordship-The question his initial chance. It is founda-

and to extend. For patriotic ns English College at Hongkong is so woll calculated to syatomatise

therefore, we think the appeal wo well as humanitarian reasons,

months ago will bear timely re made on bolulf of the soliome six

petition now."

His Lordship-I cannot undor- stand your attitude in this matter. Conasol took out figures himself and put them in, but not as ovi. dence. I now intend to refer to

books to the Registrar."

Mr. Potter An export account nt has been called into the box and I should have thought ho was the proper post who should go into the books,

His Lordship-1 cannot seo, the slightest objection.

Mr. Potter-My Lord, I wish wrong. The only profit that was to recall Mr. Tatami owing to miado was in October, $780.57, cortain information I received Thoro was no loss in respect of yesterday. The point is that it that month. The losses in Novena been suggested that Tatam "ber amounted to $148.82; The by his industry worked, up a

profit in December was $93,93. substantial business, The Jaunary loss was. $612.62. The two losses amounted to $761 | and the profit to $882, which left n difference of some $121.

In answer to his Lordship, witness said that in his figuros ko only took into consideration the

His Tardship-1 thought How oll had admitted that.

ד'

Mr. Potter-Oh no, my Lord. I did not go into it at the time because I did not think it was relevant but it might be relevant, now.

Are you skilled in accounts?- No. ****

Can you suggest why your Quoon's Rond to Morrison Hillary, March, April and May, and gistrar, who will sit till 8 o'clock Cecil Smith late Governor of the

Howell?-1 enn givono particular toason, except that Howell-re- quired assistance.

valuable assistance was called by

Your recollection is rather vague? That's true. Fourteen years is a very, very long time.

If Howell had not spoken to you lately and said so-and-so and so-and-so was there you could not have said it entirely off the reel

I could.- Although you had no interest in the matter? Yes.

Did Howell tell you anything about the Amarienn? No,

montioned the accounts,

o

I suggest that you were never there at all?-Oh yós, Sir, I was there right enough.

Arthur Hill, Assistant Bailif at the Supreme Court, said, he

nett profits und did not inke the Mr. Tatam was recalled. Wit-remembered being prosent at an working expenses into account.uess said that in 1908, he was The nett profit for October was employed by the Dairy Farm $200 and the working expenses Company. He remembered got $500.

ting a letter from the directors His Lordship-The `working | (produced). “ expenses for October was only $185!

Witness-That was paid in October.

Proceeding, witness stated that what he did was to applya portion of the expenses to a soparate

[necount":

His Lordship-Bither you must take all the accounts one month back or take them as they are printed.

up

Witness My figures total to the exact amount that appears in the balance-short,

His Lordship-What scenis extraordinary is that the first month showed such

large prolit!!*

Continuing, witness said that the Company may have hnd to fight competition. ·

1

་

Mr. Potter-That letter. ex- pressed dissatisfaction at the niner you managed your shop? This Lordship-Win has that got to do with the issue?

Mr. Potter-I want to show that as manager he was not. successful. I cannot allow the suggestion to ho made that I did not put the lotter to Tutam under cross-examination.

His Lordship-If you have other gyidence relating to 1801 or 1905, I'm willing to let it go in, but it sooms to nio that this: letter is hopelessly irrelevant. 1 really cannot allow you to wante the time of the Court.

Mr. Polter-Not relevant in cross-examination?

|

interview hold in the Registry of the Supreme Court. Tatam came to the window and said to Howell "I want to speak to you privately," und Howell replied: Whatovor you wish to tell no you can say in the 'btlier man's hearing." Tatam thou said: We've been good friends for a long time. The accounts you have made up are quite correct. If I draw up a mute, will you please sign it?" Howell said: "Mr. Tatum, you have a solicitor and I'll not do it bahind his back. Let your solicitor draw up a noto and I'll sign it.".

Mr. Slada-You're very positive about it?.

Witness I'm very positive about it, Mr. Slade,

You are a brother-in-law. of Howoll? Yes, but not at that time.

conversation,

! .

You had no intorust in Howell His Lordship-Hopelessly ir then?-liad, because I know all rolevant In fact, I may say that that was going on. Mr. Slade-In working up your ¦ 1 would" be surprised to know. This was in 19047-Yos. I stores accounts, have you attempt anybody would dream of putting took notes and looked after the od to differentiate between pur-in such a thing. clinses of butter and of perishable Mr. Potter-Your Lordship I put it to you that it's suggost articles, such na salt meat, butter, does not think I'm justified ined that Howell asked Tatina to

putting-it-in-

sign-it-and-le-offered-to-pay-half tho solicitors' costs if he did so Ho nover suggested that. He said: "If your solicitor will draw up the document, I'll sign it."

and so on?

At this point, witness submitted His Lordship-It's-linpolously certain figures in answer to Coun-irrelevant. Bel's question.

Counsel proceeded to ask wit His Lordship-Wlut puzzles | ness ʼn cortain question, me is that the stores accounts for His Lordship-You asked no December and January are so to allow you to call the witness muely heavier than the previous on certain definite grounds. 1 months.

must ask you to confitio yourself. to those grounds.

Mr. Potter (To witness) Wasn't it Howell who inserted advertisements in the papers and drafted letters for you?

Withoss-Yes, at my sugges tion. We were both present

4

WitnessThere

purchasos,

were large

Mr. Slade-What-of-meat? Witness-Practically mont, They would buy a pig now and thon and sometimes beef. Prac- tically all nient.

His Lordship-It floes seem oxtraordinary.

Do you suggest that you can vasset for customers yourself ?—

You are quite indignant at Tatum, Mr. Hill, aren't you? No, I'm not indignant. Howell

or 188). I was not in the Colony Witness I think about 1888 then.

subsequently collected P to me to show that the money Witness 1 had figures given lind beon accounted for.

when he speaks to a difference of ease and it has now been empha- sized by Mr. Lowe in the box

alrondy and I'm not disposed to $400. I've yielded a great deal viold any further.

J. Leonard, bailiff in the Court, oxamined by Mr. Potter, said he remembered that about two years ngo the Butchery had a claim But you havo cortified that tho against a man named Blowon. books were woll and regularly Tang Kee, the proprietor, come kopt without finding out whether down to issue a writ. Witness the balance shown you as paid told Tang Koo that. ho know from customery on the face Bowen and would speak to him of the ledger at the end of not asked for anything in the about it. He did so and Bowen January corresponded with the paid him the writ. Some time amounts shown in the cash books afterwards, he believed, n writ as having boon collected for that was going to be issued by the period 7--But I showed more. Butchery against Bowos.

What do you remember about

1:

Tho inforenoó is that theso books wore not kept well and

the incident of O'Hallaran; did rogularly?-You cannot expect he pay some money over to Mr.a. business of this kind to go into II?—Yes.

Muny firms of big standing do book-keeping so very elaborately not keep elaborate books. Mr. Love moans is that he finds His Lordship think what that the lodger accounts wore superfluous without going to the end to see whether the results

it.

You had spoken to him in the first instanco You. ~

Who asked you to speak to Mr. Hill --He spoke to me about to told me toll O'Hallaran there was a bill owing and that he had better pay it or there would be bill issued.

"

a

Did O'Hallaran pay him the monoy and a chit to you ?--Yos.

What was the substance of that chit? That I need not trouble any more, as he had paid that bill. The Court adjourned at one o'clock.

After tin, A. I. Lowe, ac countant, was recalled.*

His Lordship-What I do not understand in the accounts is this, that the ledger accounts which were carefully, gone through, show thero is $3200 but standing at the end of Jan, but you have hore amounts owing by customers collected in February, March and May to the aniount of $600.

Witness-I took it from the cash book, and this account is for more than his lodger account shows.

His Lordship-How would you account for these amounts?

myself I could not account for Witness Unless I took them them--

Mr. Siado--The additions are the Registrar's. He guaranteed them.

corresponded.

Witness-No; it was 'not no-

cessary:

your Lordship for yielding me Mr. Potter-I'm indebted to these concossions but so far I'vo shape of accounts. We've gone to the exponse of engaging an ox- port and I don't think we've delayed the ense for ono moment. can't sit here and check the ac

His Lordsip-I'm sorry, but I' count.

THE PARTITION OF CHINA.

HIGH OFFICIALS ACCUSED

OF TREACHERY. Great indignation is being ex- Mr. Potter-My Lord, I regard pressed amongst the native papers into the figures. It'll only take a responsible for the Russo-Chinose it in the interests of justice to go against the high officials who wore

investigated, Mr. Lowo can state by the rumours concerning the the result. Once the matter is question; and this is heightened couple of hours. I inerely want agreement regarding the frontier

the result in two minutes. At imminent partition of Clina. One all events, your Lordship is not of the leading newspapers calle going to sit after 4 o'clock. I public attention-to-the-fact that ask for an hour's adjournment,

Prince Ching and His Ex- His Lordship-Icannot do that. colloney Na Tung, two of the result can come to-morrow morn- -You can address me now and the Grand Councillors, recently gave a series of receptions and banquets in colobration of the "successful

Mr. Slado--Wonrenew talking about the figuros for this perioding. and comparing the ledger book figures with the cash book,

His Lordship-What ho in tends is to go to the end of 1800 only.

Mr. Potter-It makes no diffor-settloment" of the dieputo with

ence to me.

Russin. Why, asks the journal, His Lordship-That's it.

do they call it successful when China has had to grant concos MR. POTTER'S ADDRESS.

sions and forego troaty rights? In Mr. Slado-But he savours for the cash book in his cortificato.

Mr. Potter in opening his nd- thus acting, those officials have dress said that the ease natural-sold their country. forence, I admit.

His Lordship-Thoro is a dif-ly divided itself into two parts

have been good, but the way in Mr. Slado-The system may which it was carried out was deficient whether by accident or design.

whether the last figure covers His Lordship-It is important other minor variations,

Mr. Slade-But this is not a minor variation, for the amounts of the customers' accounts to that extent have not been hi serted in the ledger, and at the

It was the duty of the Grand firstly as to what happened Councillors to punish the officials secondly, as to what happened Russo-Chinese agreement but before Tatam left the Colony and who were responsible for the after he left the Colony. He pro- they pay no heed. If this state posed to take the statement of of corruption was allowed to con claim and all the allegations of tintie, the nation could never compartments. The first allega- plaintiff and divide them into two progress,

Recent telegrams had been tion was that the business of the received from the Chinese Minis Hongkong Butchery was under the ters at London and Paris stating ontiro control of Howell. That that a conference of the Powera statement had been disproved had been held at Paris to con absolutely, because it was now sider and discuss the partition of same time we find that the when the Butchery was run on Ministers, the whole of China admitted by the plaintiff that China. According to these two amount received from custo-old lines, the books wore kept would be divided up with the Tis Lordship The Registrarmers is very much smaller under his own oyos and ho could exception of Honan and Shansi. has been at work and verified than On10 would them,

anticipate soo them at any moment. That In the opinion of the native and the inference is overwhelm that from the amount of menthought; was not all. They now know press the partition of China is

Tatam had kept ing that there are a great many somewhat

abound to happen sooner or later. Colaborate account That it is not brought into im- other accounts of customers not which commenced in January, mediate execution is not because inserted in the ledger and not 1806, and went on more or lose the conference of Powers was accounted for.

accurately up to January, 1897, afraid of the Chinese Govern His Lordship This, account That was the only account neces-mont but of the Chinese people. shows that there was more money sary to be kopt by plaintiff and The sonators of tho National collected from customers and Howell up to the time that Yuon Assembly had repeatedly do. therefore that if as a fact there Chung took over the business.manded the convention of a were other lodger accounts the So far from establishing his special meeting to consider the inference is that he was satisfied, allegations, it was now achnitted frontier disputes and to discuss Mr Slade-I think, your Lord-by the plaintiff that the accounts the critical situation of China at ship, the inference is that there were not kept by Howell and that the present moment. These de- was a great many other customers he himself kept the most import mands have all been ignored by nccounts kept in some other ant accounts from January, 1896, the Grand Councillors Every- books, the proceeds of which The tables, in fact, wore turned thing seems to be gloomy and the His Lordship am not quite never came into the account at all. on himself. The next allega- immediate future of the country sure of this: wore the most sales cushi sales?

Mr. Potter-It is suggested that tion as regarded the first period is believed to hold out no very this sum of $3,304 was outstand-was. that Howell converted to hopeful prospects, Mr. Slade These were cashing in January, 1800.

his own use large sums of money, Witness-It inay bo that peo-

He (Mr. Potter) did not know ple lund several bills for small

whether his friend was going to say that even one penny of amounts and paid them altogether

the money was converted to his later on.

own use by Howell, The allogo- tion had now dwindled down to

His Lordship The Itegistrar has been through them and

is honest in business and Tatam within $50 or $60 they aro knows just as auch about the correct. figures as Howell docs, Tatam

Mr. Slado (to witness)-You knows more about this business scom to have taken out of the than he has told the Court. 1 cash book amounts owing by know it for an absolute fact. I'm customers and put them into this only telling the truthi and I'm account. not afraid to face anyone.

His Lordship-Very well. Witness-at-this-stage-referred. Yes,

Mr. Slude it would have been to a certain figure, which, ho Did you get them-Sometimes to Tatam's advantage to have said, was in respect of salt beef. I was successful; sometimes I was had the note drawn up and

Mr. Potter How do know ROL.

signed by him? Yes, be it is salt beef? Is there any-

About what poriod was this?— | cause it would have made, Tatam thing in the books to show that? I can't say the date.

statute-barred. Mr-Shiyle We've Tatau's word for it.

Mr. Potter-Mr. Tatam has n great memory to be able to go Buck 14 years.

Beforo 1900?--Yes.

That was the most you could da? You find a number of friends and you expected them to deal with you? I put the matter to Mr. Sinde-We've taken Ho-thom in the same way as I would well's word in respect of many have done to any other lady or dotails. (To witness)-Probably gentleman.

there is a large or substantial. That was all you could do? amount put down for January That was all you could do under which is for February. Have you, the circumstances, taken the amount of the custom- Mr. Slade-You were stoward ors' total indebtedness?

at one time of Mount Austin Witness-I've checked tho Hotel? figuros and found them correct. - Mr. Pottor-I don't think that

Mr. Slado-The total amount affects the issue. shown on the face of the figures is $3,203?!

Mr. Slade-It has been sug gosted that Tatam lived on Howell's clarity. It's nothing of the sort. (To witness)-As steward you wore brought into contact with several residents?

Witnose-The amount shown has been paid into the bank and it accounts for more than he lind to account for.

It was never done?—No. | sales. Howell should have taken the note from him then and thoro, That's what I would have done.

Mr. Potter-That's what I would have done.

You were attorney to Howell in 19087-Yes,

·

From what bills should tho missing $1,400 be mot out of I cannot say.

which have been verified.

His Lordship They are figuros

Mr. Potter-It's necessary to vorify thon still further.

Witness-From the ledger? balanco.

His Lordship-The ledger

**

TOYO KISEN KAISHA.

DIVIDEND IN SIGHT NEXT. TERM.

At tho recently hold annual general meeting of the Toyo Ral Kaislin Mr. Okawa, Vice-President explained that if the present con tinue the Company will be able to declare a dividend on both old and now shares next term.

Potter-What did this that there were certain Mr. drawings by Howell and that they Slade moan?

could not understand the items. Witness-That he took out Mr. Slade was apparentlysatisfied all accounts which had not boon on thapoint in the first instanceand, paid.

nothing more had been heard of it since. The allogations of fraud With regard to the liabilities of had anisotably failed and, he the Company all the debt of the other allegation made through interest land boen redeemed, and ventured to say, so had every Company bearing a high rate of out that caso. The third at present the total debt outstand--

You showed the sum of $3,000? Yos.

that there are other books which Mr. Potter-The suggestion is have not been disclosed. Is that your suggestion, Mr. Sindo?

Mr. Sade-Yes, otherwise the bills would not have been sent to customers.

Didn't you have a writ to issue Mr. Slado-But the difficulty against the Hongkong Butchery is this: "assuming that the lod and didn't you deliberately delay gerdoca not show the whole it in order to give 'dus warning of tho amounts afterwards to lowell?-No, I did not. I collected, thoro must live been actually paid money to get some some other record kept of of my friends out of trouble," certain customers' bills not in- The writ about the Butchery, serted in this lodger, which was brought to you souled? Yes would necount for a vary great In the ordinary course of deal of the deficiency which your routine, are the writs, brought to Lordship pointed out, that al you to be sealed?--Sometimes, though their account of moat The ordinary custom among the purchases rose very largely in Chinese is to obtain a form and January the amount theyre Witness was at this stage then either fill it up or ask for ooivod from the very much in takon through the books in de His Lordship They must have Mr. Slide--I'm leaving on was prior to being sorved ?—Yes. left it out.

Friday may have been due to a sorious a bailiff in the Supreme Court. On Do I understand you to say that Witness I cannotexplain that Mr. Potter-I'm sorry.

several occasions hessisted in this case the writ was brought where the books are 16 years *** porious, error? Howell with the booke. He would to you not sealed ?→→→Yes,

old,

Mr. Blado But if they were not kent properly

Witness-But they are

Witness-It's shown as $3,600. Mr. Slade--Whit, collected more than what appears on the ledgor?—Yes.

How?-Iecavories.

YON."

Sanitary Inspector instructions how to fill it up, and crossed unles of meat is not more." tall a was not making casli sales-It! Jo aid in. 1805 called, then it's sealed by the bailiff.]

The receipts do not tally, and that at a time when the Company was the next witness

I show that us not absolutely swear to the months l'aiggest that you did what you

sea were ・ þoing / but it was during the first part of | did do as attorney ?——No,

Not necess the Butchery's existence. He re

bared a meeting whioli was

You were his attorney at that

fraudulently representing that including debentures, bille stor allegation of fraud was falsely and including

was about Y0,000,000 the business of the Butchery was which represented a decrease of owed him money; further, that of the previous torm in a bad way, and that plaintif Y900,000 as compared with that Howell fraudulently porsuaded He assured the shareholders plaintiff to leave the Colony that a call on the new shares would That was a most misleading not be made at 1 present Th stateinent of facts, to say following accounts were adop not ap nothing more, bocause it lind ted

arently been suggested recer of least, that Howell had: Net

Mr. Slado If my friend goes on at thisrato le ll have witnesses in the bok for ther month, mede any rep

We mus

rding the

at the time