1929-04-10 — Page 10

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6, Wyndham Street, Ist floor, Hongkong.

WEDNESDAY, APRIL 10, 1929.

THE HONGKONG TELEGRAPH,

AMOY BANKRUPTCY. MOTOR CYCLIST FINED.

FORGED GUARANTEES LEAD TO FIRM'S RUIN.

EUROPEAN GUILTY OF NEGLIGENT DRIVING.

LETTER GOLF.

Hore's your chance to grab a SWORD and take part in as many DUELS as you want to without running the risk of getting hurt.

Mr. Frederick Brougham Marshall Mr. G. R. Payne, of No. 6, East (of Messrs. Tait and Co., Amoy Point Terrace, was summoned bear is ton.

at the appeared before the Registrar, Mr.fore Major C. Wilison AJ. Martin, in H. M. Supreme Central Magistracy yesterday Court, at Shanghai, for his public afternoon, for negligent driving oxamination in bankruptcy. Mr.

Defendant admitted that he did not have his licence with him at the time, but denied that he drove hin motor cycle. negligently.

Trame Sorgeant Brown, at whose instance the summous was taken, said that the offence oc curred on March 16, at 1:30 in the afternoon,

Ranald G. McDonald, representing and for failing to produce his Mr. W. D. Russell, the trustco in licence when called upon to do so bankruptcy, conducted the examina-by, a traffic patrolman. tion. Creditors were present, but did not put any questions.

Answering Mr. McDonald, Mr. Marshall said that he was in his 66 year. He was in the firm of Talt and Co. for 43 years and he had been partner. He never really retired, but ho practically gave up his active in- terest, as a working partner, in 1924, when he disposed of his Formosa business. He then came to Shanghai, which he had made his home, and he had been there ever since. Ho put Mr. F. It. Ford in as manager, but himself romalted responsible. In 1028 he entered into negotiations with Mr. J. L. Bromfield with a view to retiring and in June a document was eigned giving effect to his resignation. He actually sold the business then and had been paid for it. His name was to continuo in the firm until the

He was proceeding towards the city along Queen's Road East, when, near the Dockyard, he saw defendant approach from the op- posito direction, on his motor- cycle. Payne was driving at a speed of 30 miles an hour, but neither slackened his speed nor sounded his horn when taking the turning into Arsenal Street.

[SWORD

DUELIS

2You can change only one letter at a time.

Witness said that he put out 1-The idea of letter golf is to end of the year, but he had not had land as a signal for Payne to change one word to another and any interest in the profit or loss of stop, and when this did not have do it in par, a given number of the business. The fact was not ad-the desired resalt, he followed strokes. Thus to change COW to vertised or communicated any of Payne Into Arsenal Street, and HEN, in threa strokes, COW, his clients, because he thought that along the stretch of the new road 10W HEW HEN. would not be fair to his partner in cross the Prayh East Reclama-

Payne the middle of the year, but it was to tion. Eventually be done at the end of the year."

stopped and Informed that would be summoned..

3-You must have a complete Cross-examined by the defon-word, of common usage, for each dant, witness said Payne was on jump. Slang-words and abbrevia- the right-centre of the roadway, tions don't count. that being the position he kept before and after nussing another notor cycle on the road.

All Interest Transferred.

was

he

. At. What time, sald Mr. Marshall, he did not know the state of the business. He had not been in Amoy for 20 years, having been in Formosa until he came to Shanghal. The negotiations for the dissolution were carried out by correspondence. He

Defendant challenegd witness imagined that. Mr, Ford and Mr. Bromfield kept him informed regard- estimate of his speed, to which ing the position of affairs in the firm: witness replied, stating that ha they were supposed to, Mr. Ford at checked up the time and speed that time had left the firm, Mr. Bromwith his own speedometer. field taking his place. Mr. Bromfield His Worship found the two of- sent him monthly accounts. The ar- fences proved. For negligent rangement simply was that witness driving, defendant was fined $20. transferred all his interest in the

business, the property and the good-and for failing to produce his 11- will for the sum of Amoy 8110,000,

of which $70,000 was to be paid in

cash on June 30, 1928, and the balance tically all to banks-10 the Chartered

4-The order of letters cannot ba changed.

One solution is printed on an- other page.

cence, he was further fined $4,

Defendant: Thank you, your Worship.

Deposit of Licence,

A Chinese public-car driver was fined $4 by Major C. Willson yes-

over a period of five years, in quar-Bank about $300,000, the Hongkong terday afternoon for failing to terly payments.

Mr. Marshal sald that, at that Lime, he thought the business was absolutely sound financially, as judg ed by the monthly accounts sent to him. They owed banks inside $8,000 and against that there was a certain amount of stock. A proft and loss account was made up each year, but it was not audited, ni that was not pa A rule necessary in a private firm. Hnd he thought it necessary, he would not have taken man, inns partner without an auditor. His association with Mr. Bromfield had been very short and witness knew very little about him. The latter came to the firm in 1924 from the Texas Oll Co. They were agents for the Texas Ol Co. and the arrangemant auited the firm. Mr Bromfield was engaged by Mr. Ford, but witness was antisfied with tho männer ik which he managed the firm. Witness hud a little trouble with Mr. Furd, and Mr. Bromfeld cleared it up and good re- parts also came from others about tm. He seemed to be energetic and

good in,

Customers" Fraudulent Guarantees,

The stalement of affairs showed an estimated deficit of $404,000, which witness believed to be correct. The estimated assets were $78,599. Tho failure was not due to any act or omission on witness's part.

Mr. Menald-What was it due to?

Mr. MarshaH-That is rather hard to say, but I think it was, largely due to Mr. Bromfield having kept me in Ignorance of what was going on. Had I known what was going on, there would have been no failure, le had no authority from me ta go into business the big way he did, and, having done 0 did not take the necessary precautions to protect him. self. The failure of Taft and Co. was owing to them being unable to take up drafts drawn on them by con- stituents in other places through' different banks against certain car goes which Tait and Co. had ordered on native account, On the arrival of those cargoes, Tait and Co. arranged with the banks to give delivery of the cargoes against documente which were subsequently found to be fraudulent fergeries. The owners of the cargoes got delivery of them, realized for them what they would fetch and absconded with the money, leaving Talt and Co. to pay the drafte. consider Mr. Bromfeld's error was in not satisfying himself that these do? cuments were genuine and of value when he was dealing with the. bigt sums he was, I knew nothing about it at all. They ran into hundreds of thousands of dožiarn. In justification- to Mr. Bromfield, I must say that he Jooked on it in the same light that I did that that document puit,ma dut) of the firm,

Previous Precautions. Witness anid that he previously || had an arrangement that the firm should not have an overdraft of more than $20,000 and a later one putting the figure at $40,000. Immediately prior to June, 1927, his average year- ly expenditure was about $20,000 and his Income about $12,000: he was drawing on his capital.. He now lind no property. He had surrendered all his assets to the trustee and ho was living on what his friends advanced him. He receivel n. Bittle for judg- ing at dog races and a little commis sion from the Race Club for assist. | |ing in the parkonutuels, but thene re- ceipts were small and uncertain, He haped by comláslons, to get $500 or $600 a month. He had no position | now. · The amounts owing were praċ-

deposit his licence with the Traf- well ie Omce during a temporary ah;

and Shangha! Bank $217,000, and the National City Bank $60,000,

sence from the Colony. Upon over $500,000 between the three.

Mr. McDonald-I have to thank pleading that he was ignorant of you for the assistance you have given the ruling, defendant was told by me in this distressing task.

This Worship that he was suppos-

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