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defendants raised the question that the prices charged were not the proper ones. Plaintiffs then wrote defendants inviting them to send a representative to Canton for the purpose of examining their books. A man was sent and must have satisfied the defendants with his examination, for nothing further was said for a long time. Plaintiffs continued to furnish defendants with accounts rendered, and in the 6th moon of last year Ng Sze-kong came to Hongkong to compare books with the defendant firm to see whether the accounts agreed. He would say that the book he saw exactly agreed with the one which would be exhibited before the Court. The defence was that plaintiffs had not given the defendants credit for certain monies paid by them. The speaker and his client had had an inspection of the documents in Mr. Thomson's office, and his client was of opinion that some of them were not genuine, the chops thereon not being the chops of his firm.
Evidence was called in support of the plaintiffs' claim, after which
Mr. Gardener said the defence was that the defendants paid the amount in full before Chinese New Year. This would be borne out by entries in their books.
His Lordship then heard the evidence for the defence, after which, in summing up, he stated that apart from anything else, on the books alone of the two parties he would non-suit the plaintiffs. The plaintiffs' books were kept about as badly as his Lordship had ever seen any books kept in his life, while the defendants' were fair.
Apart from that point it was admitted that the goods were purchased in Canton at a certain figure which had been arranged. It was also admitted by the plaintiffs that defendants wrote and complained of the prices, but that letter was lost. Then the plaintiffs practically told the defendants to fix their own prices; at least that was what they said they did. Their reason was obvious; the plaintiff firm on its last legs, and they were only too anxious to get any money in. Then the evidence for the defence was that the plaintiffs came down and amended the prices, and his Lordship believed that altogether. Again, there was the receipt question; the plaintiffs' manager gave a receipt for Taels 532 and said he only received Taels 460. If a man was fool enough to keep his books as he did,
and give receipts for money he had
was
not
received, then be deserved to suffer.
Mr. Dixon-What does your Lordship say about the genuineness of the chops?
His Lordship-I say you have been paid with the exception of $7.88. I see the whole thing; the prices were amended by consent. The plaintiff is non-suited with costs.
Thursday, September 6th.
IN BANKRUPTCY.
BEFORE SIR FRANCIS PIGGOTT (CHIEF
JUSTICE).
RECEIVING ORDER RESCINDED.
Re the Kwan Yuen Hop Kee ce parle the debtors.
This was an application for the rescinding of a receiving order.
Mr. E. J. Grist (of Messrs. Wilkinson and Grist) appeared in support of the application. and Mr. H. Hursthouse (of Messrs. Dennys and Bowley) appeared for the debtors.
Mr. Grist said this was a creditors' applica- tion, but seemed to be made really in conjunction with the debtors. They all met together and agreed to the matter being compromised. The application was that the receiving order made ou July 26th be rescinded.
His Lordship granted the application.
CHUNG SHUN KOO'S EXAMINATION.
The public examination of Chung Shun Koo, which was previously adjourned to enable the debtor to prepare his statement of affairs, again came on for hearing.
Mr. G. H. Wakeman, official receiver, produced the accounts filed by the debtor. He said they were a mass of figures out of which he could make nothing.
His Lordship-Put the debtor in the box and question him.
Mr. Wakeman-I have had him at my offics for about a week, but can make nothing out of him.
THE HONGKONG WEEKLY PRESS AND
His Lordship-What were the accounts he was to file?
Mr. Wakeman-Proper accounts under section 16. The papers before the Court are simply a lot of unintelligible figures written on both sides of the pages.
Mr. F. B. Deacon (of Messrs. Deacon. Looker and Deacon) who appeared for one of the principal creditors, said that before the examination was continued he would like to draw the Court's attention to the fact that his Lordship adjourned the examination originally in order that the debtor's statement of affairs might be filed. Mr. Deacon then pressed his Lordship to limit the time for filing accounts to seven days, and after that time it was only with great difficulty that Receiver got the debtor to file the mass of the Official figures before the Court. Mr. Deacon, with the assistance to unravel them
of his client, had tried without avail, and he submitted that under the circumstances it was a farce to go on with the public examination. It was the debtor's duty to file a proper state- ment of accounts, and he ought to have done so in the first instance. He informed the Court that he would do so within a week, and the result of that undertaking was the mass of wholly unintelligible figures before the Court. Mr. Deacon asked his Lordship to deal with the debtor under sub-section 3 of section 16 for making a farce of the bankruptcy proceedings.
His Lordship-1 cannot very well without hearing what he has got to say. He must be put in the box to explain and be questioned.
Mr. Wakeman--I don't honestly think that the man is not trying to do his best.
His Lordship-Theimpression lefton my mind is that he has dous his best, but I don't think he is quite "all there" himself, since I have had him in the witness box two or three times.
Mr. Wakeman-His behaviour is very extra- ordinary, indeed, my Lord. When he came to me the other day I told him the accounts were not complete, and he said he would finish them. Two days after that, as he did not appear I sent for him and asked him about the accounts.
Then he told me I said I did not require any thing further.
Debtor was then put in the box, and his Lordship endeavoured to solve the mystery of
the accounts.
His Lordship-I see, Mr. Wakeman, he
[September 8, 1906.
That comes to $900 a month ?—It comes to more, but I have not put it down.
What is the item "Expenses of travelling, $11,000?"-Travelling in Shanghai. I then bought the Astor House properly. At that time I was a rich man.
How do you make out $11,000 P-With the cost of my family it comes to that amount. There was $600 for passage money for six people.
That is $600; how do you make out $11,000 ? -There is the cost of boarding, a carriage in Shanghai and presents to friends.
What is this "Paid into the National Bank $14,000?"-l'here is more than $40,000 paid into the bank.
Lord, but it is perfectly helpless.
Mr. Wakeman-Here is his deposit book, my
His Lordship (referring to the book)-His credit side in 1904 was 888,000.
Mr. Wakeman- Yes, my Lord, but I don't know where the $40,000 comes in.
His Lordship-I have seen enough of the debtor to know he does not keep sccounts, but trusts to his memory.
Debtor-I have got a very good memory.
Mr. Deacon-As soon as he is questioned about his accounts he gives statements that do not at all coincide with the figures your Lordship has before you.
His Lordship-They coincide to this extent :- that he had apparently a very large business because his credit in 1904 was 888,000. He bad a very large sum of money passing through his bands, but he did not keep accounts.
Debtor-Mr. Deacon knows I do not keep accounts.
His Lordship-I cannot comm't him for contempt, but I don't know what I can do with him. Is not there a clause in the Bankruptcy Ordinance about people who have not kept proper accounts?
Mr. Wakeman-Yes, my Lord. Debtor-I have got no partners. Mr. Deacon-Just as well for them. His Lordship-What are his liabilities " Mr. Wakeman-$143,305, and his assets are the question is whether they can be realised on. $65,650. All the properties are mortgaged, and
His Lordship-I think the best thing for the creditors would be to have somebody to administer the estate and put it into order.
Mr. Deacon-They has
appointed.
can have à
put a sum of $1,000 on one side, apparently to
make a sort of balance. What is that amount? Mr. Wakeman-He cannot explain what it is received for 1903. You have got $41,000 18 His Lordship (to debtor)-Take your rents months at $2,300 a month”. What does that
mean?
Debtor-That is what I have received for rent from my property.
Where is your account for that?-I lost it a long time ago, but made up the amount from the counterfoils.
Where are your counterfoils -They have been eaten up by the ants.
Were they eaten up before you made the accounts?-No.
How do you know you received $2,300 a month? For each flat I received so much, then I totalled the amount. I ought to have received
more.
His Lordship-Is that anything near the amount
Mr. Wakeman-I don't know. He tells me it is only an estimate.
His Lordship-Have you got a list of his properties?
Mr. Wakeman-He has been dealing in property, buying and selling, and I don't know what he has got.
His Lordship (to debtor)-You have made expenses of business $2,500. How do
you calculate that?—It is more, my Lord. Repairs for the month of August $1,400-
That is not expenses of business: that is expeuses connected with property?—Yes, property.
What do you mean by expenses of business ?— Repairs.
No, it means your office expenses.-I have called it business expense.
What is "Expenses of my family,815,000 |*2— I spend about $900 a month on their upkeep. I have two children and four coolies. There is so much for house rent and so much for con- tributions to charity.
trustee
His Lordship-It is quite clear the man is not capable of managing his own affairs, and it would be to the interest of himself and all the creditors that somebody should be appointed to take charge. Then I should imagine in a couple of years the estate would be all right.
Mr. Wakeman-If your Lordship would make some terms and have the property invested in a trustee.
His Lordship-What powers have I got ? Mr. Wakeman-Under section 18, but the offer must come from the debtor himself.
His Lordship-I mean for the appointment of somebody to manage the estate.
Mr. Wakeman-That could be done only for a short time until the debtor was adjudicated bankrupt.
His Lordship-Is it possible for the debtor to make the offer that bis estate should be put in the hands of a managing trustee?
Mr. Wakeman—Yes.
His Lordship-What is wanted first is that somebody should look into his affairs and report. I cannot help thinking that there may bo s great deal in his property.
Mr. Wakeman-Undoubtedly he has a large property at Kowloon, but there is a large amount of interest to be paid and the mortgagees are putting the property up for sale to recover it.
to somebody being appointed to look into your His Lordship (to debtor)-Will you consent affairs to make a report to the creditors, and, if the report is favourable that somebody should · manage your estate for two years ?
Debtor-Not for so long. If my creditors give me time I can pay all of them in full.
His Lordship-But you cannot manage your own affairs.
His Lordship (to the Official Receiver)-He is quite willing that somebody should report
on his affairs to the creditors. The matter can be then reported to the Court and if the· debtor declines to appoint a trustee it can be
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