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of two mountain pieces, was captured by 16 men under Sergeant Toyoda, the enemy leaving behind him, besides the two mountain pieces, five dead and a quantity of small arms and ammuni- tion. The forts at Chintoshan having thus easily fallen into Japanese bands, they were at once destroyed, while the barracks and other Combustible works were burnt down, the flames extending over two and a half miles.
Meanwhile the Naito detachment took posses- sion of Keilanmen, and the whole army soon advanced to the top of a range of hills opposite Tsienpi-shan, the most formidable barrier to the southward progress of the Japanese forces. There the army bivouacked that night.
It is stated that of the insurgents who held this region, variously estimated at between 1,000 and 4,000, a large proportion were the regular Chinese troops, a circumstance which, | in the opinion of the Japanese correspondents, accounts for the promptitude with which they took to their heels. One writer is inclined to. think that the volunteers may venture to stay at Miaoli and try once more the chances of war, but that the regulars will not rally until they reach Chang-hua or Taiwan-fu.
THE HONGKONG WEEKLY PRESS AND
The following telegram from Rear Admiral Tsunoda, Staff Officer, dated Taipehfu, 22nd August, has been received at the Imperial Mili-effected, sustained, or done by your said Bank tary Headquarters in Tokyo:-
pany was originally known as the Trust and Loan Company, Limited, and advanced money on shares and other securities. At the time the transactions in connection with the case were carried on the plaintiffs carried on business in Hongkong as the Bank of China, Japan, and the Straits, Limited. The defendants in the case were, respectively the executors and executrix of the will of Cheung Kai, who died in January, 1894. In August, 1891, Mr. Chantrey Inchbald, manager of the Bank, appointed Cheung Kung Sing, brother of Cheung Kai, compradore of the Bank, and he entered into a letter of agree ment, dated August 25th, 1891. He accepted the terms upon which he had been engaged, and On the 9th at 5.30 a.m. an attack was com- undertook to perform the duties that had been menced upon the enemy on Tsienpi-shan, The specified. The first clause provided for his insurgents, who seem to have lost heart from the placing in safe custody all gold, monies, way in which they had beeen handled on the pre-securities, goods, and merchandize, and all other coding day, fed pell-mell in the direction of goods placed in his possession and to account Miaoli, without offering any resistance worth for the same when required. Section C pro- speaking of. The bulk of the division then vided for his engagement of the Chinese ser- pushed on to the village of Chang-kong, while vants, and Section D was as follows "I am to the Kawamura column advanced to the fort of be responsible for the payment of and pay and Chang-kong, which lies at a short distance further make good all losses (whether or not the amounts south. The Yamane detachment took up its thereof exceed the sum of sums respectively quarters at Taofun, the Naito detachment being | secured or undertaken to be paid by me and by stationed between that place and Chang-kong the said Cheung Kai by the obligation or bond village. During the operations of the 8th and hereto annexed and dated the 25th of August, 9th two men-of-war bombarded the enemy. 1891) that may happen or agerne to your said Throughout the engagements of the two days Bank through the non-payment or through the the Japanese did not meet with any casualty purchase of any native Bank notes, bills, drafts, except the death of a lieutenant; and the loss promissory notes, or orders, securities for money, of the Chinese was only 30 to 40 in killed, which treasure, and bullion purchased or received shows the nature of resistance offered by the through me or with my knowledge and consent latter.
or through any of the said employees, through or by reason of the default of any Chinese purchaser to or from whom the manager or other official for the time being in charge of your branch in Hongkong may have sold or purchased the same for cash or on credit with my introduc- tion or at my request." Section E provided that he should perform the ordinary duties of compradore according to local custom; and sec- tion 5 was-" All entries made in the ordinary course of business in such books of account as may be kept at your branch in Hongkong to record the several transactions, sales, purchases, contracts, agreemonts, losses, matters and things
or by me or any of the said employees, and of any losses or damages resulting therefrom or caused by my neglect, default, or want of skill, or that of any of the said employees, shall be conclusive evidence against and binding upon me both as regards the fact of the same having been entered into, as also of any loss or damage resulting therefrom without further proof thereof." At the foot of the letter Cheong Kai put the following endorsement--" I hereby knowledge that the above letter of agreement setting forth the terms upon which the above named Cheung Kung Sing has been engaged as compradore by the Bank of China, Japan, and the Straits, Limited, and the duties and liabilities attaching to is office has been translated to me in the Chinese language, and that I understand the purport and meaning of the same. And I hereby declare that I ap- prove of the same letter of agreement and am liable as surety for the said Cheong Kung Sing for the due performance by him and by the above mentioned employees and of all his and their obligations thereunder and under the an- nexed bond." The bond, which was in the usual form, was then referred to by counsel and in it Cheung Kung Sing and Cheung Kai were bound in the sum of $100,000, to be paid to the obligees. To terminate the agreement six months' notice was to be given of either side. The defendants claimed to have given six months' notice terminating the engagement on the 22nd September 1894; the plaintiffs denied that legal notice had been given, and if the notice was legal the proceedings were commenced before the expiration of the notice. In addition to the agreement and bond Cheung Kung Sing also executed a mortgage leasehold properties and deposited the title deeds with the plaintiff Bank. pradore entered upon his duties on the 1st August, 1891, and no trouble arose until towards the end of March or the beginning of April, 1892. In February or March, 1892, the Bank purchased from font Chinese banks in Hongkong, through the compradore (as was admitted by the pleadings), eleven bills of
"On the 22nd August the Yoshino Kan re- turned to Tamsui. She had left Kelung early on the morning of the 13th August, and, cruis- ing off Chang-kong, gave assistance to the troops on shore. On the following day she lowered boats and landed a party at Ta-an. On landing the party met with resistance, but defeating the enemy they burnt the barracks. There were about 1,000 insurgents at Ta-an and Tatiao, but they all fled in the direction of Chang-hua, by way of Geomatao. On the 16th the Kawamura detachment occupied Tong-sian without meeting any resistance. The state of affairs remains unchanged in the vicinity of Miaoli, On the afternoon of the 17th a scout- ing party came to Ta-an and effected a junction with the fleet. The Imperial Guards Division will occupy Tatiao on the 23rd August and then advance towards Taiwan-fu."-Japan Mail.
SUPREME COURT.
2nd September.
IN ORIGINAL JURISDICTION.
BEFORE SIR FIELDING CLARKE (CHIEF JUSTICE).
THE BANK OF CHINA, JAPAN, AND THE STRAITS V. CHEUNG KAI'S ESTATE. · In this case the plaintiffs sought to recover $100,000 from Cheung Yau To and Cheung Yau Pun, executors, and Lan Shi, executrix of the will of Cheung Kai, deceased.
Mr. J. J. Francis, Q.C., and Mr. H. E. Pollock (instructed by Messrs. Johnson, Stokes and Master) appeared for the plaintiffs, and the defendants were represented by Mr. W. V. Drummond and Mr. D. McNeill (instructed by Mr. Dennys),, : .
The pleadings were taken as read by consent of his Lordship.
Mr. Francis said this was an action on a bond for breach of suretyship. The Banking Com
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on certain
The com-
:
1
[September 4, 1895.
exchange on Shanghai, and they amounted in the whole to Tls. 190,000. On 27th March in that year, while some of those bills were still unpresented, or at least not due and payable, the compradore of the Hongkong and Shanghai Bank vanished from Hongkong, and the immediate result was that those four Chinese banks closed their doors and ceased to do business. The immediate result in Shanghai was that two banks there on which the whole of the eleven bills had been drawn also closed their doors and failed. It was at once intimated by wire to Hongkong that these bills would not be paid. The vanishing act of the compradore became public on Sunday, March 27th, and the fact was immediately re- ported to Mr. S. L. Darby, the accountant, and Mr. C. Inchbald, the manager, of the plaintiff Bank. Both went to the bank premises and saw Cheung Kung Sing and Cheung Kai, and an immediate effort was made by Cheung Kung Sing to get as much money as possible from the people who had guaranteed these bills of ex- change. He succeeded in the course of that day and the following morning in getting together all sorts of promissory notes to the tune of $71,000 face value as far as was known. On March 30th the compradore was debited with the whole of the amount of the bills that were dishonoured and overdue. The Bank opened no account with the drawers or with their guarantors, and no account was kept of the sureties or securities that the compradore brought in. They were nearly all Chinese documents; the Bank simply had his statements as to what they were worth and put them in-safe custody. Whatever amounts were brought in were credited to his account as the person who was bound under the bond, to pay all drafts as they fell due. Of course the general liability of the compradore of a Bank with reference to the Chinese cus- tomers was ordinarily spoken of as a surety or guarantor, and under this agreement and bond Cheung Kung Sing was the person primarily liable. The agreement did not say he shall pay in default, but that he shall on the days when these documents fall due pay or make them good, so he was simply debited with the total amount as they fell due. The account against him was opened in the ordinary course, and quarterly interest, in accordance with the Bank custom here, was charged on the quar- terly balances of that account. A copy of the account was furnished to Cheung Kai's exocu- tors before September 1894, and formal notice was given to them. The account was made up from the books as they then stood."
The Chief Justice-As I understand the ac- count was opened as if the compradore was a customer at the Bank?
Mr. Francis-Practically as a person indebted to the Bank; as if he was a customer indebted to the Bank.
Counsel then proceeded to analyse the account. The primary charge was the amount of eleven bills worth Tls. 190,000 at an exchange of 72, which amounted to $263,888.89. These bills cost in actual cash disbursed here $261,606, the difference between these amounts being $2,282.89. If this were an action on a bill of exchange that amount would be described as re- exchange, and if counsel understood rightly, that was the amount in dispute. In the pleadings defendants admitted that the bills were pur- chased by the Bank, that they paid $261,606 for them, that they were purchased through the compradore, and that they were dishonoured. The charge of $2,282 was justified in this way. If the bills had been paid on presentation in Shanghai they would have realised Tls. 190,000, and that amount would have been brought back to Hongkong at 72. In addition to the eleven bills one of the Banks that failed had given the plaintiff Bank a promissory note and obtained $10,000 payable on demand, and for this amount the compradore was primarily liable under his bond. The demand for payment was made on March 27th, when the disaster occurred, and the money was not paid. The promissory note was at six per cent., which gave a total of $10,052.60. The compradore had been credited with $148,690.19, which sum he had paid into the Bank after obtaining it by sales of promissary notes and odds and ends. The cash paid for bills was $261,206, and for the promissory notes $10,062.60, making a total liability, apart from interest, cost of process, and legal expenses, of
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