1929-08-06 — Page 7

BANKING FAILURE.

(Continued from Page 1) dollar. That is not failure, though it in a reverse,

You say you were never short of working capital?—I would not Bay that.

"Was the company continually short of capital?—It was never short until June 1, 1928, when Mre, Janse Chin's debt, was not paid.

· We could always meet our oblign- tions when they arose...

In answer to other questions, Mr. Brewer said he had refused working capital as he was satisfied by the way in which it was coming

1:

The Official Receiver: Why was It necessary at a directors meet resolution saying that the direc- tors must pay for their sharps7 We were wanting to extend. The directors wanted to open two other

ing on March 10, 1998, to pasa a

branches.

THE HONGKONG TELEGRAPH. TUESDAY, AUGUST 6, 1929.

260 shown in the balance sheet described the issued and subscribed capital jointly. Ho agreed that one

rtion of the capital was never allotted and that the company did] not receive a cent of it.

WHOLESALE THEFT A DANGER TO THE THE SINO-RUSSIAN

OF CLOTHES.

PROPERTY FOUND IN MANY 'PAWNSHOPS,

TWO CHINESE GUILTY,

PUBLIC.

16 TINS OF KEROSENE ON FISHING BOAT.

MARINE COURT.

DISPUTE.

ATTEMPT TO REStore C.e.r. TRAFFIC.

DR. WANG'S ATTITUDE. tions for, shares in respect of an The Official Reserver:-Applica- amount for $1,133,000 were receivSixty-two articles of clothing, Saying that he had to safeguard

Shanghai, Aug. 5, ut in August 19277-) accept your inchiding 40 pleees of European the pubile and that the defendant An endeavour by the Chinese word.

wear,, belonging to her husband, was not only endangering himself authorities to restore traffic on the which were stated to have been but others as well, the Hon. Chinese Eastern Railway Is stolen from the house of a Chin-Conundr, G. F. Hole, R.N., at the reported from Harbin It

Never Struck Him.

- mover struck my notien.

Do you observe that in almost se Indy residing in Prince Ed-Marine Court this morning. im is stated that the Mukden Govern- very case the application forms ward Road, were produced as exposed a fine of $50, with the alterment will borrow a number of have not been properly completed?hibits before Mr. T. S. Whyte native of two months' hard labour, coaches and locomotives from the Smith, at the Kowloon Magistracy on the master of a fishing boat for Tientsin-Pukow Railway for the In only one case is, the percentage this morning, when two youts Harbour with Is tiüs of kerosene attempt to restore traffic is said to mooring his erlift in Shaukiwan temporary use of the C.E.R. The to be paid on allotment filled in were charged with larreny of the tools true; but i don't think you clothes and alternatively with re

be the result of a compromise ceiving stolen property.

Pleading guilty, the defendunt, reached between Mr Tsai Yun- can build anything on that,

giving his reason for not anchor-hsiang, and Mr. Melnivek, ing in the Dangerous Goods The Nanking Foreign Malster,

Mr. Brewer contended that

although the percentage to be paid was left blank, the first sentence on

the application form constituted an A resolution also slates that Mr.gregment to pay and the forms. Chan Sing-chor be offered the has been signed. position of general manager and be

required to pay the balance of share money. Therefore he had not paid the balance?--He paid 5

per cent.

Wan appiled to for the balance he refused? Yes, I did not hurt is in any way. We were not

wanting his money, but we did not want a general manager with

out standing in the company.

Balance Sheet,

On September 25, 1928, the question of going into voluntary liquidation was discussed?--Yes.

"That was legs than throw months after the publication of the balance sheet-Yes,

Voluntary liquidation was the

mast frequent tople of discussion from: September, 1928, until May

of this year --- Yes,

The first report and balance sheet covered a perind up to April 30, 1929, and was presented for fling on July 1928. Mr. Brewer said the document as printed was altered during his absence, had approved the typewritten

Ite

The first defendant; admitted

on board,

the first charge and said that the Anchorage, informed his Worship Dr. C. T. Wang received a cable- second defendant had nothing that the kerosene was intended for grum yesterday morning from Mr.

bright light fishing.

whatever to do with the theft.

The second defendant, however, admitted that he has received 13the defendant's boat was one of . Sgt. Brown, who prosecuted, said The Official Receiver-articles of the clothing from the many others lying about 50 yards over, f927, did you transfer first defendant to pwn.

from the Government Pier at $963,000 from issued capital le

Shankiwan Harbour, allotment suspense 7--Ven

Why was that done?-Because the applications were doubtful. Subsequently some became gouf.

the person had a

shares forfeited for non-payment you ensider that good?--I did not consider any of them good. That is why they were transferred

Do you think they properly ajs peared in the balance sheet?---No, but I did not think there, was a lie there.

Inspector Phillips said the com- plainant was the tenant of a new- y-arveted house in Prince Edward, Road and had recently sub-let the premises to a man from Canton, The two defendants appeared to be this man's folis. The pier of the house returned to Canton on July 31.

KRW the defen-

Tsai Yun-hsiang reporting the Melivok adding that result of his two meetings with M. conference with M. Melaivok will take place this evening.

#1 third

Brighter Prospects,

Mr. Taal said he thought that the possibilities of direct negotia tions, between China and Russia for the settlement of the Railway dispute were brighter.

one

Reporting on bis conferences" with M. Melnivok, Mr. Tsai said. that Russia consented to restore trafle on the C.E.R. within month meanwhile ceasing all form of military preparations.

The Nanking Foreign Ofee, commenting on the report of Mr. Tsai Yun-hsiung, stated that the Soviet terins were tantamount to partial compliance to the demands of the National Government laid down in the Chinese reply to the First Soviet Nole at the beginning of the dispute.

Two Charges. '. Charged on two counts, (a) with making fast to the 8. Menado Mars whilst that vessel was still under way and (b) with failing to stop when called upon to do so by a police officer, the mistress of i rargo bout admitted the first One of the conditions of the offence, but denied the other. lease was that the complainant Giving évidence, Sgt. Elliot said was to lie allowed to keep a trunk that at about 8 pm, on August 5, containing clothes on the pre he was on duty on No. 5 Police mises, in the risekloft. Sometime Launch. He Not Misleading,

after the tenant's departure for dant's craft vil.h several misleading--Not The Canton, the complainant visited others lying alongside the 8.8. balance sheet was only circulated the premises and on examining Menado Maru. On his approach, among Chinese, and I understood her trunk found the clothing was she left the side of the steamer and although he ordered her to stop, they set out their capital in that missing.

Haring the course of investi-she failed to do so. Later he found Asked whether $201,800 of angations, the second, defendant. her near the Star Ferry Wharf on assets side ns accounts receivable formed the police that the first |jtem of $221,960 set out on the who was still on the premises, in the Hongkong side.

represented unpaid calls or calls defendant had gone to Canton, away from Sgt. Elliot. She was General Chang Hauch-liang, hend for drrears, Mr. Brewer said he On his return, he was arrested, aware, she said, that her sampan of the Manchurian Government, considered it was possible. He did and, when questioned, amitted had no possible chance of evading Mr. Chu Shao-yang, the Nanking not know whether $113,300 of the the theft. The property was re-a launch. The current was strong special emissary, left Mukden until she reached the Stary Ferry yesterday afternoon at 3.30 for

Is it

banner. It would have misled me,

Defendant denied that she ran

After a brief conference with

draft, and bad fled the printed amount of $201,800 represented | covered from 18 different pawn-Wharf when she hooked on to the larbin. At Mukden, Mr." Chu

ropy although alterations had been

'munde.

The Chief Justice; Was it not a

serious thing to siru a document you know to be inaccurate and fle --It would be serious if

in a it to be inaccurate. knew commercial sense

Witness "Impudent," During answers to Bis Lord- ships questions, Mr. Brewer was reproved by the Chief Justice and told not to be impudent.

The

I

10 per cent. on the ahuerens allotted.

Asked whether be considered it In proper entry to put on that side

of the balance sheet, hu,sad he objected to it on the grond that it was indrally objectionable!

Tu Meinl Receiver:-Do you el your Chinese auditor do what be ikea with the balance sheet No. I was away.

shops,

"A number of pawn tickets were pier awaiting, the arrival of the found in the second defendant's police lamuch. bouse.

"Do you expect me

to believe

it was stated that the clothing ten days on the first charge that?" asked his Worship. "$10 was valued at $182,

and the same fine on the second. The first defendant was sentene-In the event of the defendant not to six weeks' hagd labour, paying the fines, the sentences are while the second defendant was to run consecutively."" fined $25 or three weeks' imprison- ment

whnt

Other Cases.

received an order from the Nau

king. Foreign Ministry instructing

detained Soviet officials of the him to refuse the Russian demand for the immediate release of the

CER. concerning whom the National Government possess con- créte proofs of being Communist propagandists,

Soviet Demand,

He agret that an amount of

Lat Muf, the mistress of a $1,120050 was given in the printed

PRISRENKOR hout, pleaded guilty In an interview in Nanking, Dr. sheet under weled capital as a perfectly good asset. He believed

when charged with committing a C. T. Wang said he had learned In the course of questions that the item included 90 per cerning Shekki and Canton nomearrying 30 rattan

conreach of ber boat licence by from official sources that the The Official Reveiver:

chairs. She Soviet terms to be put to China only difference in the typewrition, of the shares which and not My. Brewer asked exactly

will Include a request for a mere balance sheet which you say you an allotted.

allegation Mr. Agassiz was making, was fined $a or five days, Sunday NGOSOSAUNE, wount:

change of Soviet officials and of approved, and the printed one

whereupon the Chief Justice told which you say you disapproved, is

Mr. Bower to answer the ques

ager the assistant manager and man- of the CER. The the way in which the items zivo

fans,

National Government will nol the company's capital? -Yor.

cumply, at any cost.

You worn present at the meeting of directors which approved the typewritten one?--Yes, we signed it.

Ind absence.

alf

Cash in Hand.

Mr. Agassiz went on to refer to an item of $164,082.89, describíral as eash in hand in branches and sid there Were other itema which purported to show how that

amount was made up.

For boarding the .s. Menado

the master or the officer on duty, Marn without the permission of

a Chinese, described as a pig dealer's foki, was ordered to pay |$10 or go to prison for 10 days. Later. When dealing with pro- The Monado Maro figural in missory notes given to shareholders yet another case, this being fo

Mr. Brewer Reproved.

to the values of approximately which four mistresses of cargo Mr. Brewer agreed, but added, $34,000, Mr. Agassiz asked if cash beats were charged with making he had already said, that the deu-pussel, and Mr. Brewer answered fast to her whilst she was under ment dk not belong to the com- in the affirmative.

any. I was prepared by him.

way: All pleaded guilty and were Mr. Brewer started to give an ench fined $10.

wanten lecture.

Railway Incident, According to a Harbin message,

a group of Chinese outlaws on Saturday morning attempted to rob a train from Harbin to Chang- chun. The bandits met with a stubborn resistance, necessital-

be a station

In reply to further questions, Mr. Brewer said the first printed proot of the balance sheet was signed by the auditor alone. Mrs. Brewer made the auditor sign it but not on beltsdf of the company. explanation as the difference Both the coxswaina of two ing their giving up the attempt The bidance sheel had been alter Accurately speaking, he continued, between cash and money, when his launches who were charged with after killing a Chinese railway- during his (Mr. Brewer's) he would say he did not know how Lordship remarked they did not failing to observe the rule of the man. A Soviet official of the

rond, by keeping to the wrong railway, said to that amount was made up, but,

Mr. Agassiz suggested that rer side of the Fairway, bad each a master, was kidnapped by the The Official Receiver:---Why was

generally speaking, he could the alteration mede 7--Bécause the

previous conviction for the same bandits. In auditor said that Chinese firmy "yes," as he had a very general tain entries were cross-entries,

response, to the Mr. Brewer: They are, 201, offence, One was fined $15 ide of the books,

but alarm raised, Chinese troops took That is a He. Mr Agassiz then referred to an

the other, whose previous offence up hot pursuit of the bandits, who His Lordship:-Dan't. use lang-was committed as far bark IN Do you consider that a sufficientem Treasury Fund, $24.000 ord.

1916, was only fined $10, the reason making good their escape. The eventually abandoned the Russian, reason for altering the capital? Mr. Brewer said the Treasuryge of that kind here,

Mr. Brewer:-I withdrawe the lacing, his Worship said, that be Soviet official was rescued without Learning of it after publication Fund was kept in the hands of the remark, my Lord.

could not take notice of any offence injury, but two soldiers were shut treasurer, Mrs. Brewer, usually at

The hearing is continuing. the Netherlands Bank.

and seriously wounded in the encounter.

always set out their capital in thal way.

I saw no ground for recalling it..

New Form.

Mr. Brewer further sail hu rould not possibly say if that Did you raise any protest

amount was included in the mish against this new form of balancin hand at branches and he did sheet-No. There was the signa- ture of the auditor and of him not know if it was duplicated. Ile was not prepared to my it WHH not duplicated,·

more on it.

Did you, before lng the

Mr. Brewer, is explaining an

balance sheet, draw the attention item $10,000 cash at Singapore,, of the directors to the alteration? said Mr. Lim Jou-sin bought some -Surely.

Thire is no record of that?-shares, pad for them and the No. They were satisfied becausey was handed do Mr. Leang-

Si-ki, Lhe bank's they had not signed it.

agent Do you agree that the statement.

Singapore. whe held Chem as to capital in the printed for expenses that would arvue in balance sheet is soitely mis-opening a Singapore branch. That leading and neorre ?-I do not man was, however, lable for that agre. 1 am

amount, and would have repaid assured by the auditor that it is correct for the money as soon as the brauch Chinese Bem,

was opened.

This was a British company under the Ordinaære?—It'i re- gistered under the Ordinance.

-YER.

the

Never Opened. Mr. Brewer agreed that The whole of the books were in branch was never opened because English except those of the the Government would not grant branches at Canton and Shekki? licences Some money on pre- liminary expense had been incur- Further questioned regarding, but he did not believe it to be the balance shent Mr. Brewer said more thin a few hundred dollars. the typewritten one was drawn He did not belleve it was $4,000. up by the auditor and typed by Mr. Agassiz suggested it was Mrs. Brewer. The auditor's data not a proper statenient to make, consisted of the company's books | as $10,000 cash in hand at branches and three balance sheets personal which was supposed to be cash in ly checked by Mr. Brower and the vaults to the bank. guaranteed by him. The balance Mr. Brewer replied it was cash sheels referred to the head office in the proper dictionary and com- and the Shekki and Hongkongmercial sense and it could only

· offices,

hive been classed as it had been

The OMetal Receiver: Does the classed. balance sheet by the auditor re present an amalgamation of those three balance sheets?-I do not know.

In reply to further questions, Mr. Brower said the amount of 82,613,-

He continued that he had not received a cent from Mr. Leung. but that WH not his (Mr. Brewer's) fault. It was still in the hands of the company, bechuse Mr. Leung was the agent.

committed 14 years ago.

'NO PARKING

BETWEEN THE HOURS OF

•CLARK NEA STRACE INC.

Harry and get back; I don't want to be eaught parkin' here,"

- Bad, Treatment Alleged.

Shanghal, Aug. 6. The latest report reaching Nan- king from Marshal Chang Shuch- linng states that Chinese consular officers and residents who have been arrested by the Soviet,are being badly treated.

Marshal Chang adds that all the property of the arrested Chin- ese in Soviet territory has been confiscated, and he urges the Cen- tral Government to take step in the matter.

Marshal Chang has also raport ed to the Central Government, the Intest movements of the Sovlet the frontier. --- Nam troups ou Chang Po.

STARTLING TOKYO

STORY.

CHINESE PRINCE SHOT IN JAPAN.

Tokyo, Aug. 2. Chung Chung-chul, former war lord of Shantung province,. #hot and seriously wounded Prince i Sen-kal, cousin of the former "Boy Emperor of Chira here to-day,

The circumstances were iny. sterious. Chang, Chung-chang claimed that the shooting was ne- cidental.

Chang has been in Japan since hy was ordered out of Chiah by the National Government follow- ing his stand against Chiang Kai- shek's armies In Shantung. Associated Press..

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