1926-03-31 — Page 2

Repulse Bay Hotel.

CARNIVAL.

on Saturday, 10th April, 1926.

THE HONGKONG TELEGRAPH,

AMAZING BANK FAILURE.

LIABILITY FIVE TIMES TOTAL CAPITAL.

L

WEDNESDAY, MARCH 31, 1926.

The partners and members of Your, balance of assets over the family have been living of liabilities for the year January the bank for years?—Yes. ~; 1922 to February 1923 was 894,-

The abilities 'nre $1,888,023.7-188-Yes. A

Yes.

•

Yon were carrying a million His Lordship: It appears to me follars of bad debts, only showed that the amount due to depositores, balance of $94,138 and still say is the amcunt due from the part you didn't know you were insol- In the Fankruptcy court yesterners and the family to the bank" ent? Some of these items I ex day the affairs of the Wing Hing I agree

pected to collect Bank were investigated when the

How did you justify it. What His Lordship: What per cent Oficial Receiver put one of the about your own borrowinga?-nge did you expect to collect?— partners through a searching ex-The money I borrowed amounted Ten to 20 p.c. Imination. The partner, Li Shun- to $300,000 but I haven't köpt ny All you expected to collect wan fan, admitted that he, his felloeccount. Sometimes I have pailt most 3200,000 when you issued partnera and the Li family lind in and sometimes drawn out. that balanced shoot?-No not at Yes, but you have drawn out the time when the balance sheet that he had lent much of theoftoner than you have paid in was drawn. Bank'a noncy without security. Yes, on that account we are to In reply to one question he admitted this position. that the partners and family owed the bank about a million del- Iars. Total liabilities amount to over a million and a quarter do!- lars.

DINNER $4.00 per headed on the bank for years and

(FANCY OR EVENING DRESS OPTIONAL)

Bus to the Peak Hotel 12.15 a.m. Special Bus to the Hongkong Hotel 12.30 à.m.

TABLES FOR ABOVE MAY NOW BE BOOKED AT THE HONGKONG OR REPULSE BAY HOTELS. Telephone:-C. 2581 and C. 776.

The Hongkong & Shanghai Hotels, Ltd.

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Tiffins aud Dinners served from 10-30 a. m.

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THE MING YUEN STUDIO (Battery Path.)

Official Photographers to the H. K. Telegraph"

46

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THEOSOPHY

THE COMING OF THE WORLD-TEACHER"

will be the subject of this week's public lecture of the Hongkong Lodge The Theosophical Society, 7. Duddell Street, on April 1st. at 6 p. m. The Meeting is open to the public,

Two partners appeared, Shun-fan. And i Wing-kwong. Mr. T. G. Bennett and Mr. J. T. Prior appeared for some of the <reditora

How much did you expect to get then full amount, the whols million." I didn't take the items off because I didn't know what I

Official Receiver You were using bank money for your own private business?That is not so.should collect.

Then what were you usingnit The Official Receiver The for? I have lost some money so Shun Li Wing liabilities were. I borrowed from the Bank, $800,000 ard you took $300,000 of the Bank's money to pay debts of the firm. Do you say you expect- ed to get half a million dollars out Would you lend money to an of the Shun Li Wing-1 expect other person' without security?ed to get something out of the I have often lent money without partners Inter on. security. That is the practice of

No Security for Loans. His Lordship: Did you give the bank any security?—No...... -

In reply to the Official Receiver Li Shun-fan said he was 51 and had lived in Hongkong all his ife. He Pad been continually or ali banks. cupied in business and consider. His Lordship:

A very

com-

Same Debts in Following Year.

The Oficial Receiver went on to deal with the same debts which. appeared in the balance sheet of the following year. Debtor said he still expected to collect 50 or 60 per cent of them. Referring to the following balance sheet he asked if 50 per cent of the same debts were insolvent, Debtori re-

cd himself a skilled and experiencfortable practice for borrowera

d buginers man used to dealing who are directors. with figures. There was another Further questioned, debtor said partner in the firm, Li Lok-lauhe paid 9 p.c. on the money which who died in 1922. A fourth part he borrowed without security, ner was a woman named Li Hoi This he said was the usual rate in wu who was not now in the Co-the Colony for such borrowings. lony. The original capital of the "I trusted myself and thought|plied that he wouldn't have known Bank was $244.000. The

thren I was trust-worthy” added debtor. male partners each contributed Further questioned by the Of $80,000 and the woman partner ficial Receiver he said he was an $4,000. The money he put in hu executor of Li Lok-lau's estate got from what he had and his in- but no provision was made for his terests in some shops, Hin debt to the bank because it was father had been a wealthy man not discovered till their statement Have you paid the money of Li and had left him over $100,000 of affairs was made. San Choi- | Lok-lau's estate to the benefici-

it. There was still $150,000 of Li Lok-lau's estate left.

Oficial Receiver: Then as an executor why did you not pay, the debt to the Bank?--I'm only minal executor.

Then why hasn't this debt been paid?-Tu5 items have been pall.

His money was first put in a lentong was a firm which had boraries under the will?-Yes, ac- ther business which had not paid rowed money from the bank cording to the will. and he put it in the Shun Li Wing. through Li Lok-inu. They had lent: That was between 10 and 20 years it to someone else. They only go. The Shun Li Wing had fail-paid out his estate as directed by ed, in 1922, and the liabilitie, the will. amounted to $800,000, Li Wing- kwong and himself had paid the debts except one, which was owing by that firm to the Wing Hing bank, a sum of $500,000..

The Same Partners.

The Oficial 'Receiver:

Who were the partners in the Shun Li Wing Wing-kwong,. Li Lok·· lau, myself and a manager.

They were the same as the part ners in the Bank?-Yes, mostly.

To meet the liabilities of the Shun Li Wing you took money from the Wing Hing bank?-You, When the last balance sheet, of

"

His Lordship: Did you pay money to the beneficiaries and leave the debts?-We did not know what money was owing by him to the Bank.

You know some was 7--All that was drawn in his own name was returned..

Forgot a Quarter Million.

Then why do they appear in the bulance sheet as ́ asset of the tank?—I can't explain myself. The accountant who drew up the balance sheet must be called.

"Do you suppose that if $108,000 had been paid to the bank the ac- countant would not have known it? —I shall call him for an explana- tion.

Your creditors are poor people? Debtor said he was given letters-I don't know whether they are of administration in respect of poor or rich. this estate bat he was only a

No Composition Allowed, nominal executor. He however.. Official Receiver: forgot about the debt of the San Choi Tong.

from.

those who

Judging. attend- ed the first meeting of creditors The Official Receiver: A small it is not difficult to judge. item to forget-a quarter of a The Official receiver said he the Bank was drawn and publish-million?--I seem to have forgot-would like to know Hia Lordship's

ed in January 1926 you put down the Shun Li Wing debt. of half, a million 25 An asset. When you came to file your statement of affairs you put it down as a debt, not even as a doubtful one?-

didn't know then whether I could collect it or not.

ten it, I can't help it now.

views on the proposed compos.-

On the death of Li Lok-lau were Lion. partnership accounts taken?- No.

Take this balance sheet. There are three items marked. They are the amounts due to the bank by Li Lok-lau? Yes.

According to your statement of

They total $230,943—All I know affairs you are a debtor to the is that when the account was set Wing Hing bank for $372,0007ff he still owed $160,000. Yes.

f

Debtor went on to say he was interested in the estate of Li Chi-fong deceased. The whole of that estate had been realised and distributed with the exception of what was in Canton. This con- sisted of rice fields.

You

The Oficial. Receiver: have not realised them in ten years?--No, the price offered was too small

J

Million Due From Partners and Family.

I put to you that over a mil- lion dollars are due from the part- ners of the Wing Hing bank and from other firms in which they are partnera and from the Li family?--Yes.

Practically all debts are due to the depositors of the Wing Hing bank?--Yea.

The $497,000 owed by Li Chu fong appears in that balance ahent as an asset of the bank?--Yes.

Not a cent has ever been re ceived?-$200,000 has been set off. The $240,000 owing by the San Choi Tong is an absolutely bad debt?--Yes.

Which has appeared in the ba- lance sheet as an asset for three years?—Yes.

Knowledge of Insolvency. When was the Wing Hing first insolvent?-The seventh moow last year.

Although you had been carfy. ing this debt of a quarter of a million by the Shun Li Wing, $300,000 from Li Chu-fong and $245,000 from the San Choi Tong do you still say you did not know you were insolvent until then?- Yes.

His Lordship said as far as he could see he should under no cir- cumstanca allow a composition in this case. It was an utterly disgraceful case. He cul et conceive any circumstances under which he would exercise his dis- cretion to allow a composition to be formed. The case must be thoroughly thrashed out." *

At this stage the case was ad- jdurned until 10.30 this morning.

PRINCESS VICTORIA ILL.

London, March 30.

A bulletin says the strength of Princess Victoria is maintained. There is no extension of the mis- chief in the chest.-Router.

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