Another point raised by counsel as that the American Oriental Bank did not call up Mr. Allison to find out whether the cheques were order. A cheque was not negotiable unless the endorsement [was authorized, The Judge said there was 30] question of the authority as Mr. Allison had the authority to ender: the cheques.
Counsel, however, affirmed that the bank had not ascertained whether he had. If they had Jquired they would have found out that Mr. Allison had authority but that Chang had no- authority to handle those cheques.
Honour took the view that the cheque was payable to bearer and the position was similar to much money.
Mr, Moss said that the British custom, which was not practised by American banks was that when a cheque was crossed it was for deposit jonly. Practically all the cheques had been crossed. As to the question of the Statute of Limitations he asked that this question be left} over until he had heard defending counsel's argument. This wi agreed to by the Court.
Mr. Worthington said that pla tiff did not allege that defendants had any knowledge that the cheques did not belong to Chang. The whole question before the Court was Jwhether or not the Bank had acted in bad faith in taking these cheques. The question of negligence Was immaterial except as evidence lof bad faith.
His Honour said that plaintiffs did not charge the bank with acting in bad faith but with acting negligently for not making inquiry.
Counsel replied that where the cheques were brought by a third person there was no right of the yank to question The Practice in Shanghai After a lengthy legal argument by counsel his Honour said that he was not satisfied with the evidence and didn't think that Court had facts before!
decide the question of negligence. All that had been brought before the Court ws that during a period of 18 months these cheques with a vast number lof other cheques were taken to the expert evidence had been given {to the practice of banking generally and in particular in Shanghai.
Judgement was reserved.
Text read from the printed page and cleaned; old type leaves the occasional error.