158
reduced from twelve per cent, to eleven and a half per cent. The sum of $150,000 had not been repaid. but the defendant had paid $4,812.50 as interest. The plaintiffs, on 31st October, 1906, sold the property for $180,000, but had to pay the Hongkong and Shanghai Bank some $50,662,30 for principal, interest, and costs on their mortgage for $60,000. The defendant owed the plaintiffs a balance of $49,062.52. Li Po Yung, the first defendant denied absolutely that the transfer to the plaintiffs was made with his consent. He did not either consent to a reduction in the rate of interest. In November 1903, he commenced an action which was withdrawn upon the plaintiff agreeing not to hold him liable in
the mortgage. respect of Yung's defence was that he was what sum, if any, had been paid by Ya Yak Chi and Li Po Kwai and that the mortgage of 20th January 1905, and the transfer of July 22nd 1905, were in no case valid for more than the sums already paid on the latter date. He further stated that the ́sale made was not a real sale, but a pretended transaction at a gross under-value whereby the plaintiffs had acquired the property at a price less than two-thirds of the real value, He denied also any indebtedness to the plaintiffs because they had agreed to release him from all liability. Judgment was delivered for the defendants on the claim with costs, and on the
Li Po unaware
counterclaim a decision was entered for Li Po Yang with costs.
Tuesday, August 25th.
IN ORIGINAL JURISDICTION,
BEFORE SIR FRANCIS PIGGOTT (CHIEF JUSTICE).
CLAIM FOR Over $300,000. The hearing of the case was continued in which the Imperial Bank of China sued Leang Bhai Kong to recover $316,045.65, money due and compound interest at a rate of sight per cent. at half yearly rates upon the various items composing the claim.
Hon. Mr. H, E. Pollock, K.C., instructed by Mr. H. J. Gedge (of Messra, Johnson, Stokes and Master) appeared for the plaintiffs, and Mr. M. W. Slade, instructed by Mr. F. P. Hett (of Messrs. Brutton and Halt) for the defendant. Mr. Pollock, in replying to the defence, said Mr. Slade's first point was that the appointment of Leung King Wo was for a year in the first instance, and that the surety's liability would not extend beyond that period. Although it was perfectly true that there was an agreement signed about a year after the first document, Mr. Pollock would venture to join issue with his learned friend upon his argument that the first appointment by the first agreement was for a year only. He would venture to submit that as a matter of fact there Was nothing in the paragragh on which Mr. Slade relied to indicate that Leung King Wo's appointment was to be for a year only. That paragraph related to the terms of the agreement, and not to the period of the appointment. Leung Wo continued in the Tientsin office from August 1899 until June 1900 when the Boxer troable broke out, Counsel said his point was that there was nothing in the agreement to indicate that was to Leung King Wo's responsibility terminate at the end of twelve months
Mr. l'ollock continued his address after tiffin. He contended that Leang Kin Wo was using chops with the name of the Imperial Bank of China for the carrying on of a business which he did not report to the head office. The transactions should have been carried through on the premises of the Imperial Bank of China. His Lordship-In order to bring the osse within the particulars of the guarantee there is a contention of fraudulent appropriation.
Mr. Pollock-Not necessarily, my Lord. I should say s mere deficiency on any account would be sufficient.
are
now
His Lordship-Of course you suggesting that it was fraud and that Loung King Wo was appropriating this money to himself.
THE HONGKONG WEEKLY PRESS AND
His Lordship-The difficulty I feel is this, and I think it is against you: If it was 80, why was it not at once detected, instead of after a certain period?
Mr. Pollock-For this reason: If you come soross books which you are told are compratore books, the matter requires investigation. A. considerable amount of investigation would be required, for instance, before it could be seen whether it was fair to call the books secret account books.
His Lordship-There is not much evidence of that investigation!
Mr. Pollock-Liquidators were sent up. His Lordship-Bat they did not arrive at a conclusion for over a year.
Mr. Pollock-I think there are indications that in 1900 something was considered to be wrong.
His Lordship-Let me know the date on which Leung King Wo died ?
to the accounts
be
Mr. Pollock-In August 1900-just after the Boxer trouble. The Bank had apparently found that in addition disclosed there were many other accounts. Therefore, though the actual te-labelling to have taken place for does not seem a year after, still there appeared to something wrong, and they looked to him. The accounts which form the subject of this olsim were not included in the returns. In the gus. rantee bond Leung King Wo and the surety are to be held liable for any mouies which should be lost either by Leung King Wo or by anybody he is over. We submit that that would cover any loss by Leung King Wo, and if he had had a compradore it would have covered any loss by bis compradore. But the former having the management, and having chosen to deal with the accounts in a certain way, we submit that he is liable. My friend somewhat artfully contends that because he chose to label these accounts compradore accounts, the surety cannot be held liable.
His Lordship-As the Bank sanctioned the ase of a compradore there must have been some form of business that a compradors would do.
Mr. Pollock-There is nothing to show in these regulations that an independent com. pradore must be appointed.
His Lordship-What position could a com- pradore be in except for doing a pertain class of business ?
Mr. Pollock-Take it to be so. His Lordship-Then there must be some It appears to me that one of the sooounts. points you have got to establish is this: 'The balance which stood to the credit of the Coast Defence Committee has disappeared, and is not traceable in the accounts as they stand. You have certainly got to show that the balance has disappeared. I understand the suggestion to be that that balance is to be found in the general accounts,
Mr. Blade-We don't know.
Mr. Pollock-My friend stated that it was sometime ago, but he seems to have repented.
Mr. Blade This money is shown on the liquidation accounts to have been used for the
benefit of the Bank.
His Lordship-I will put it rather more generally. Taking all the accounts together of the bank and compradore business, it does not show a deficit which would otherwise appear the man had appropriated the money.
if
[Âágust 31, 1908.
we can show that these items of claim are leas than the balanos, that is sufficient for our purpose.
His Lordship reserved his decision.
IN SUMMARY JURISDICTION.
BEFORE MR. H. H. J. GOMPERTZ, (Aoring Puisnu Juden).
REPAIRS TO A CHINESE CLUB,
Action was brought by Tsang Wui Tenn to recover from Jia Yik Man" the sum of $101. 20 balance due for work done and material supplied the defendant for repairing the Ching Yau Club at 55, Lower Lascar Row. Mr. Otto Kong Sing for the plaintiff stated that $20 had been paid on account, His Lordship gate judgment for the balance, and costs.
Wednesday, Angust 28th.
In Summary JURISDICTION,
Broв MR. H. H. J. GoxeErtz (Acting PUISNE JUDGB),
CONSENTED TO JUDGMENT. The Kang Yan ́deng firm sued Tsang King . to reoover $60) due on a promissory note.
Mr. E. J. Grist (of Mesars. Wilkinson and Grist) appeared for the plaintiff, and Mr. A. Holborow (of Messrs. Desoon, Looker and Deacon) for the defendant.
When the case was called and plaintiff did not appear Mr. Grist said—I think he must be in the other Court, or perhaps has gone to
the Pollos Court,
His Lordship-Why should he go there?
Mr. Grist They are so ridiculous, these people. They always go to the wrong place, I would ask your Lordship to adjourn the caNG until this siternoon.
Mr. Holborow-I think I am satitled to costs for coming here this morning.
Mr. Grist-I will ask your Lordship to adjourn that question.
Mr. Holborow-I was hoping the plaintiff would be here. I am willing to consent to judgment. but on terms.
His Lordship-Why cannot you go into that now ?
Mr. Holborow-I am quite prepared. The defendant asks if my friend will grant him two weeks' time to pay. In other oases where he was oɔncerned, Tsang King has always kopt
his promise.
Mr. Grist I cannot agree. There balance due from a case a few weeks ago.
Mr. Holboro-That was paid on Saturday. His Lordship-I will give judgment, with a stay of execution for a fortnight.
Mr. Grist-I cannot consent to that. This writ was issued on August 15th, and there is no reason why my client should not be entitled to interest. If the defendant will consent to pay interest at the usual rate from the date of execution of the writ I am prepared to consent to a stay of execution for a fortnight, with liberty to apply. Otherwise all sorts of things might happen: somebody else might pặt in execution, or he might run away.
Defendant's solicitor consented, and his Lord- ship gave judgment for the plaintiff, execution to be stayed for a fortaight.
Count Jesiersky, Manager of the Tientsin Branch of the Russo-Chinese Bank, has been appointed Manager in Shanghai vics M. Drosemeier, who is understood to have severed his connexion with the Bank.
Mr. Pollook-Of course, the defoit is not shown. Supposing a man gets somebody to pay money into the bank and pats the money into his own pocket; the money is paid into the bank over the counter and entered in the compradore's
The Spanish Consul at Shanghai who re- books. Now, my Lord, the fact of the min putting the money into his pocket does not pre-cently announced that he had withdrawn vent the account from balancing because that protection from 60 or 70 Chinese subjects sum of money would appear in the socounts,
registered at the Amoy Consulate has sinos withdrawa protection from all Chinese re- gistered as Spanish subjects in the Shanghai Consulate, and all properties registared at the Shanghai Consulate" in the name of Spanish protégés have been withdrawn from the register. Reports have been called for from the Spanish Vice-Consulates in China with a similar object in view. The large number of Chinese who have been registered in the Spanish Consulates as protégés of Spain were probably connected with the trade, with the Philippines when these islands were under the dominion of Spain,
His Lordship-These uncollectable accounts are accounts of persons who owe money to the bank, and have been legitimately described as losses due to bad management. They are not claiming in respect of those, they are claiming in respect of accounts with which there was a credit balance. That is the puzzle !
Mr. Pollack-Those which are put as assets are things which ought not to have beau assets
His Lordship-The claims made are in res- pect of credit balances,
1
Mr. Pollook-Yes, my Lord, but I don't want Mr. Pollock-I sumit all we have got to you
to think I rest my case exclusively on that.' show is this: Here are amets uncollected. If
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