Mr. Newman, in opening the case for plaintiff first dealt with the nature of the document on which the claim was made, and said that if it was nob a "native order," it came within the definition of a promissory note made by a banker and payable to bearer on demand, and intended to circulate as money. According to the custom of the country, order bore a fictitious name, "Yuen chi" being the name adopted by a syndicate, of which plaintiff was a member, which advanced moneys to the Chinese Government throu; the Shanghai branch of the Bank of China. Some time in May last, representative of the Chinese Government through the Board of Finance came to Shanghai to endeavour to borrow money. He approached Mr.
Sung Hung-foo, manager of the Ningpo Commercial Bank, asking him if he would be willing to Jend the Government $2,000,000. Mr. Sung replied that no money could be raised in Shanghai to be loaned to the Governmen The representative then said that Yuen Chi syndicate they agreed make the advance required, on the distinct understanding that the native orders would be payable in Shanghai. Plaintiff agreed to take $50,000 of the loan, his account at the Ningpo Bank was debited with this amount, and the money was delivered to the Shanghai branch of the Bank of China. They were told then that the money would be re payable at that branch.
When the lorders were received, it was noticed that they were headed ''Peking," and when the attention of the representative was drawn to this detail, he stated that the money would be repayable at the Shanghai branch of the bank. Orders were received to the amount of $2,000,000 advanced by the syndicate, and orders which fell due were. repaid by the Shanghai branch to the amount of $500,000, in August and September last.
In November the two orders which were the subject of the present claim were presented, but payment was refused. Plaintiff consulted his consul (the Portuguese Consul), who made application to the manager of the bank in Shang hai. The Portuguese Minister then made forma] application to the Bank of Chin in Peking, without result. Counsel. concluded by saying that the order, made by the court, that the assets of the Shanghai branch must not be used in meeting the liabilities of the Peking or other branches, must stand or fall by the result of the present action. The only point to be decided, therefore, was whether the orders held by plaintiff conferred upon him the yight to have the money repaid to him at Shanghai.
Ninepo Bank Masacer's Evinence.
Mr. Sung Hung-foo was then called and gave evidence bearing out counsel's opening statement. In August, orders representing $250,009 wore presented by the Ningpo Con:- mercial Bank to the Bank of China in Shanghai and were paid. In September, orders for a similar amount fell duc, and when they were presented the Bank of China here said they had no funds to meet them. They {asked for an extension of time. Witness took the matter to the presentative who arranged the loan, and he asked witness to give him the orders, saying that he would {have them'paid. On October 8, the Bank of China honoured the orde: When plaintiffs' two orders for $25,000 each were presented ins November, an extension of time was {again asked for, but payment was {not made.
Mr. Harris—How many of these documents does your bank hold?
Mr. Tavares—I am sorry I must object to the first question put but, ith the permission of the court, 1 cannot possibly allow my client to answer a question which may affect the credit of his bank. If it is knowe he would be able to. offer: native r dercbie amount of these orders, in Shanghai that the bank holds a orders signed by the bank of China so that any money loaned would it may bring about a run on the really be a loan to the Bank of bank, or affect the bank's credit. China.
The amount held by the bank is Mr. Sung then got busy among a absolutely immaterial to this action. few friends, amongst whom was} a Mr. Harris—Very well. I will plaintiff, and in the name of the put the question more mildly. Do you hold a number of these orders?
Mr. Krisel—I am instructed that Mr. Sung Hung-foo saw my client to-day and informed him that he, had heard that the manager of the Bank of China had said that if this casa came into court, the cross examination of Mr. Sung Hung-foo would show that his bank was in such a condition that a run on the bank would be inevitable, and thas Mr. Sung Hung-foo would—regret that he appeared in coun. If this question is put, it will bear out what Mr, Sung Hung-foo_ has heard. will affect the standing of the bank in the eyes of the Chinese, because if clients of the bank hear that it has Tent money, or is in any way connected with the Joaning of money the Government, they will have n+ faith in the bank, and there will be a run on it.
Mr. Harris—It would seem that in order to get this question disallowed, the suggestion is being made that there is a plot. Iliad not the remotest idea. until I came into court this afternoon that. anyone was going to be called from the Ningpo Bank, and I have not seen Mr. Sung (manager of the Bank of China) for over w month.
Text read from the printed page and cleaned; old type leaves the occasional error.