Hartopp went on to say, it confined itself particularly to bodies cor~ perate and excluded individuals. He was of the opinion that the law was. to protect persons who intended investing in stocks and shares of public companies and did not refer ty matters of credit. In fact Messrs, Townsend, Day & Ca, were for qneetical purposes a partnership—only six shareholders—although technically speaking they were registered. private companies, why did they not specify it as such? One could not read words into a law.
Me. Mossop said that there could be no imputation that the Act did not apply. It referred to companies and private companies were not legally established until 1907—al. registered companies must come the provisions, they came in the category of public com-ranies. He thought that every incorporated and registered company wees a public company. It could not a private partners!
Judge King said that the test of a company was its registration, and as it was registered under the Hongkong Ordinances, he held against the objection and ordered counsel to proceed with the defence The Defendant's Admission In the afternoon, Mr. Townsend said: "I have admitted in my letter to the Chartered Bank, that I did not have 110,000 rabbit skins in the godown as I reported on the statement."
Mr. Hartopp then questioned him bent the March return to the Bank, witness explaining that he had Leen "continually worried" by the Bank about his overdraft. The ski hed been sold and others he thought:
been rejected.
His compradore could not advance kim money and he suggested selling the skins, saying, "I will replace them." He (witness) thought that at ettlement time everything would be squared. The compradore had settled other affairs and witness be-
Tieved that he would act in this as he had done in the past. The ment of 40,000 skins he had made through the Chartered Bank at Tls. 22,000.
Counsel made further' inquiries regarding the alleged statements of 150,000 skins in February and 110,000 skins in March, defendant saying that he had accepted the godown keeper's reports, and could Gly explain the shortage by re-Jections, other than, of course, tne 40,000 which he had shipped to London. The compradore had promised to replace them, The company had handled 500,000 rabbit in one year, and he could not count them all personally.
knew that the item of rabbit skins in the final report was not correct," witness added. "but T depended on the compradore to replace them.". Witness then. explained that he had sold a large Consignment through the Hongkong, clients at Home worried 2,590, and, to" offset the sale had given the Chartered Bank a cheo!
Kale. You suggest that this is. duo to deterioration and to. changes in In reply to Mr, Hartopp, witness market value?—Yes, I do. insisted that he was not.extend:.1 Mr. Mossop:—I put it to you packing credit fac but had that had you put your cards on the established a" permanent overtable you would. not have got one minute's credit. draft with the Bank, On opening the Witness:—I wanted to do this for business, Mr. Morrison of the bank granted him Tls. 50,000 and later ithe best for everyone. this was extended to Tls. 100,000.
Counsel:—Yes, for yourself, Witness:—No, for the Bank ani this being in. September, 1926. As for everybody. Tad the compradore temporary measure he was grant? replaced the skins, ashe said he ed an additional Tis, 30,000. would, everything would have been
Text read from the printed page and cleaned; old type leaves the occasional error.