In the statement of claim it was: put forth that the plaintiff was one of the promoters of the Shanghai Chinese Coal Produce and Stock Exchange Company, a Chinese company formed in 1921 with a capi of $2,500,000 in 100,000 shares of $25 each. The plaintiff subscribed for 950 shares and subsequently purchased 3,215 additional shares at an average price of $9.52 per share. The plaintiff advanced to the company $34,000 for the promotion expenses and $5,900 for leg: the latter sum being defendant and it being agreed between the promoters that thi should be refunded to plaintiff out of subscription money to be paid into various native banks.
In 1921, the plaintiff employed the defendant to obtain registration of company in the Spanish Consulate to be called the Chinese Coal Produce and Stock Exchange Company, La, and the defendant thereupon' caused the company to be registered in the Spanish Consulate with a capital of $125,000, but none of the capital was ever subscribed. In 1922, owing to the registration, the company in Peking not having: been effected the plaintiff consulted the defendant with regard to the recovery of the money advanced by him to the company, and the de-' fendant adviced that the second company, namely, that registered at} the Spanish Consulate, should be wound up. He stated that he would consult the Spanish Consul on the matter, and subsequently informed the plaintiff that the Spanish Consul agreed that the second company }should be wound up, and the defendant further stated that he could in such winding up obtain possession. of the money which had been pail into the first company, and would, after payment of necessary expenses, pay to the plaintiff $34,000 shareholder, to which course the plaintiff agreed.
Defendant was appointed by the: Spanish Consulate as liquidator of the Chinese Coal Produce and Stock Exchange Ca., Lé., and, acting behalf of J. Gonzales, described as the duly appointed official trustee of the Shanghai Chinese Coal Produce and Stock Exchange Ca., La., the defendant obtained from the International Mixed Court at Shang. hai an order for the payment to Gonzales of $45,378.71 deposited with certain native banks in the name of the Shanghai Chinese, Coa: Produce and Stock Exchange Ca., which had been subscribed for shares in the last mentioned company. Out of this money, the defendant: Paid to the plaintiff $26,000 and Promised that he would account for the balance but he had refused and/or neglected to do so. The Paint claims an account of all money and of the Shanghai Chinese Coal Produce and Stock Exchange Company received by the defendant or by and other person or persons on behalf of the defendant in his capacity as Tiquidator of the Chinese Coal Produce and Stock Exchange Ca., Ld., and payment of such amount as may be found due upon the taking of such account.
Statement of Defence In the defence it was admitted that the plaintiff paid to the defendant $5,900 for legal expenses, but the defendant was no party to any agreement to the effect that. this, sum or any part thereof should be refunded to the plaintiff out of the subscription money.
The defendant admitted that was appointed by the Spanish Consulate to receive claims _from creditors of the Chinese Coal Produce jand Stock Exchange Ca, Ld., bu: he was not appointed to receive
sent to J. Gonzales, who wa: Payments, Al payments were to be the
Text read from the printed page and cleaned; old type leaves the occasional error.