Shanghai, 13th August.
Before Taotai Tsar Curls, President of the Bureau of Foreign Affairs at Nanking, and Sir Nicuoras J. Haxsex, H.B.If.'s Consul-General.
Benventz v. tHe Krayonay. Derexce anp Pay Derartuest.
This was a resumed sitting of a Court constituted under the provisions of Article 17 of the Tientsin Treaty of 1858 and Section 2, Sub-section 3, of the Chefoo Convention 1876, to enquire into the claim by Messrs. Bennertz and Ca, against the Kiangnan Defence and Pay Department. The proceedings now take plice at the Canton Guild, Ningpo Road.
Mr. H. P.' Wilkinson appeared for the plaintiffs, and Mr. W. V. Drummond for the defendants.
Chu Kang-pei was further examined by Mr. Drummond. He absolutely denied the making of any arrangement regarding the handing over of the steamers such a5 was set out in the letter of the 5th of August which had been put in. He had never seen the letter before, which was false. Ho did not have anything to do with' the sending of the letter to the Commissioner of Customs, which purported to give the reason for the return of the steamers, and, moreover, the evidence of the plaintiffs upon the point was false. The first reference by the plaintiffs to the idea of giving up the steamers was made in i letter of the 8th of August to the Viceroy, which was-followed by a telegram. Prior to that there was no verbal understanding on the matter. After the letter wan brought to witness' notice he complained to Mr. Bennertz that h" was charging him (witness) before the Viceroy, and must be without conscience to do a thing. Witness saw Tseng Taotai who said the plaintiffs' demand regarding the return of the steamers was a squeeze, and the witness should try to squeeze them in return. The defendants weta anxious to get the steamers back, and Tsdng Taotai sent two officials to receive them, but, after appearing to consent, Mr. Bennertz said his Consul had advised him not to give up the steamers. The same evening (the 25th of August), witness received the document, bearing the Consular stamp, offering to surrender the ships for Tls. 25,000, which perfectly astounded him. "According to the charter-party the plaintifis were required to give notice to the defendants before incurring a liability of Tls. 1,000 for repairs, but they did not do so. He explained that he chopp: d certain accounts of the plaintifis' compradore in order to prevent extravagant expenditure, as the compradore could check it by explaining that the guarantor would not chop the accounts in which there was any extravagance, and therefore he (the compradore) would refuse to advance the money. Witness contended that the stamping. of certain compradore orders paid by the plaintiffs did not mean that the Department was in any way liable for' the payments. When the paper relating to the Tls. 25,000 was sent to-witn s, after about a week's interval, he offered to submit the case to arbitration, and meanwhile pay $10,000 into the British Consulate. However, the plaintiffs would not accept the offer. He had never put a soldier on board the steamers, or even been spart~ threatened to dose.. After the ships had sed by the surveyor, the De] ment did not anticipate having to spend he received the account demanding Tls. 12,600 for repairs, etc, he thought it was with the object of delaying the payment of charter-money. The satisfaction of that claim would have more than eaten up the charter-money due to the Department. No explanation was ever offered by the plaintiffs as to why the claim suddenly jumped from Tls. 12,600 to Tls. 25,000. Soon after the trouble arose witness sent full reports of the whole case to the Viceroy, the Shanghai Taotai, and to Tseng Taotai, the head of the Department.
Witness, in cross-examination, by Mr. Wilkinson would not admit that he enjoyed the reputation of being one of the most literary writers in China, or that his writing was well-known in China.
Witness, in the midst of the -ross-examination, hotly protested against the in which he was addressed by Mr. Wilkinson's interpreter, and some amusement was caused when it was pointed out that Mr. Drummond's interpreter had addressed him in exactly the same way, without objection. Eventually, it was agreed that he should be spoken to in terms equivalent to " Your Honour."
Continuing to reply to questions by Mr. Wilkinson in cross-examination, he sai that Bennertz and Ca. should have had a trial trip when the steamers were handed over to them, and if they did not work roperly they could then return them. Witness thought the security he had from Mr. mnzweig was all right, but of course, he never expected any trouble then. Witness went to the Austro-Hungarian Consulate to get Mr. Rosenzweig to sign, but the Intter was not there, and later there came the letter from Mr. Rosenzweig guaranteeing the respectability of the firm Mr. Drunmmond read x letter he hi received from Mr. Rocher, the Commissioner of Customs, dissenting from Mr. Bennertz' evidence regarding an offer through him (Mr. Rocher) to settle the matter. Mr. Rocher asked whether it would be necessary for him to come to the Court or whether the letter would be sufficient.
Mr. Wilkinson said he did not wish to call Mr, Rach In the end it' was decided that Mr. Rocher should be called.
The Court at this point rose for the day. 14th August Chu Kang-pei was further cross-examined by Mr. Wilkinson, Witness said the
uso they wanted them quickly. As wished to repair the steamers for retaining the Chinese engineers, the steamer on which they were retained, the Ningchow, got away successfully. The Ningchow and the Wooning were both insured. He advanced money for the insurance of the steamers and when Bennertz Ca, produced the policies that would be credited to them. He asked for the dismissal of the Cuptain of the Sinfokien because he was anxious about the ship. The certificates given by Lloyd's surveyor was Mr. Ko's business. The steamers were deli ed when the plaintiffs' men went on board and the Department's men came out, not from the time the steamers sailed. Ho received Tls. 7,000 from the plaintiffs, out of which Tls. 3,000 was for insurance and Tls. 3,000 was lent to plaintiffs. The Government were responsible for all repairs or fittings to the steamers which should have been there if and when they were as transports, but not for the requirements of trading vessels, He did not charge plaintiffs for things for which the Department was responsible. The Ning-steamers were detained. He could not say: chow being sent to Hongkong the other the telegrams about threatening the steamers frightened him, because he never saw them. When he asked Mr. Bennertz for an explanation of the telegrams Mr. Bennertz tried to push iron to the shoulders of Kang Lung-foo and said he sent them tothe Viceroy. He did not shroff" the telegram before it was sent." As to vouchers for things of which the Department admitted liability he could produce Ching Chang's voucher for Tls. 1,000; the Municipal Council fitted the electric light and he took their word for that amount. The iron plate said to be for the Kianyning was for another vessel of which he did not wish the Department to know. When Mr. Bennertz went to the Consulate and came back after an interview with hin lawyer over the negotiations for the return of the steamers no mention was ade of a sum of money; besides, no accounts were furnished.
The Court at this stage rose for the day. 16th August.
Chu Kang-pei was further cross-oxamin-Mr. Wilkinson. Witness said that for his nephew was employed by the plaintiffs' compradore, but he did not write up the books at all. Witness knew nothing about the letter to the Commissioner of Customs until it was mentioned to him by Mr. Sharp after the trouble arose. The steamers were not detained on account of the letter, but in consequence of the Ningchow going to Hongkong. The detention was arranged between the Shanghai Taotai and Tseng Taotai. The fact that the Ningchow was on the way to Hongkong was reported to the Department by a Chinese steamer which met her, and as she had cleared for Chefoo the matter was very suspicious. With matters after the detontion of the steamers witness had nothing to do, but Mr. Kuo would be able to speak.
Kuo Shun, deputy of the Department, was then called. He said his special duties ery especially—and also forts, He had were to inspect government ships—machin-little knowledge of engineering: In March Inst year he was instructed by the Department that the Wooning, Ningchow and Sinfokien had to be repaired and painted as they had been chartered toa firm. He then saw Mr. Chu who said the vessels were to be chartered by the plaintiffs. One morning he went on board and met there Mr. Sonne, Mr. Johnston tf Boyd Ca, and Mr, Twentyman, of Farnham Ca., Mr. Chu and Mr. Pollak. Mr. Sonne said two of the ships would have to docked for inspection as they had been ashore and he must also have the engines opened out so that he could examine them. The ay and Ninychow were taken into dock, and the engines and hull very carefully' inspected by Mr. Sonne. A few days after, Mr. Sonne handed witness a report of the repairs required, and he (witness) invited Boyd Ca, and Farnham Ca., to furnish estimates of the cost of these repairs. Before handing the report to the firms witness struck out some of the items, after consulting with Mr. Sonne. He did that to save expense, as he did not think the steamers would be running for very long. One of the items* struck out was the packing of the boilers, and another, the repair of the forced draught arrangement. Witness believed the Sinfokien and Wooning were entrusted to Boyd & Ca. to repair and the Ningchow to Farnham & Ca., Mr. Sonne inspecting the work daily. Some time after, witness received a letter from Mr. Chu enclosing one from Bennertz Ca. complaining that the man-hole door of the Wooning was defective, and Mr. Sonne laughed and asked whether that was all.
At this point the Court was adjourned on account of the indisposition of Mr. Wilkinson.
17th August.
Mr. Wilkinson read a letter from Mr. Herzberg refusing to give evidence unless requested by the Judge, or Sir Nicholas and stating that he would give his evidence, if called, irrespective of either Partin Englehart, who was then'called, stated that hie was now chief officer of the
Text read from the printed page and cleaned; old type leaves the occasional error.