jet Court ing action has just been! concluded, the result of which is being closely watched by importers! generally in Shanghai, for its effects.
ikely to be far' reaching and important.
Dr. F. Wilhelm appeared for the! defendants, the German China Ca. Ltd,, of 19 Kivkiang Road, a Ger. man firm of importers, whilst the plaintiffs, the Van 'Zeng-chang 'Tung Kee Piecegoods store, were represented by Messrs. Loh' Kai-ting' and Chao Vu-wong.
Shortly, the facts are that a Chi nese firm, Van Zung-chang, order ed through the defendants in May, 1928, from a German factory certain piecesoods to the value of Tls. 1,395.00, but failed to take delivery upon their arrival in Shanghai Legal proceedings followed, the German China Ca, Ltd., abt Judgment against Van Zeng-chang. In due course the successful litigants applied to the Court for; compulsory execution of the judg ment, and obtained a. scaling order. against the Nanking Road premises.
Upon the judicial Police attenipting to enforce the sealing order the Chinese in the shop refused to allow them to seal the premises, asserting that the sop no longer belonged to tke original debtors, but was now the property of Van Zung-chang Tung Kee, the proprietor of which was one Wong Yang-kone, who was formerly assistant manager of the debtors, Van, Zung-chang, As, however, the signboard outside the' premises' distinctly bore the name of the Chinese firm who money to defendants, prevailed upon to withhold the sealing of the premises upon payment into the Court of the amount of the judgment.
The erstwhile manager, Wong Yung-kong, Bled an objection to the execution order, and, in accordance with the onder of the President of the Court, who, in execution cases ets ax appeal judge, instituted: a suit against the judgment credit the defendants, to uphold his im to the business.
The case came on for. hearing yesterday, wen the plaintiff's produced: "a: sale" contract dated Februiry: -®, 1930,, aceotdiig', to Which jhe. former proprietors,, Van Zeinsechotic, sold the wssiness fo the present plaints, Van Zung-thone acting responsible for, all debts. Copies of the Chinese newspapers were also offered in evidence, advertising the transaction and a receipt for Tle. 10,000, alleged to have been the purchase price of the business, was also produced amt counsel for plaintiffs contended that these documents, according Shanghai commercial custom and us sze were quite sufficient to establish the legal transfer. Questioned by the judge, plaintit''s admitted that the transaction had not been registered with any official that the transaction was into for the purpose of evading the just liability of Van Zung-chonx Uder thei many contracts; that the doozments produced by _plaint were not sustained by any accoptable evidence, and that ordinary could not be apagainst the strict law existed regarding the regis firms, forces the law rel istration of firms, for it is well Known that a foreign firm is not permitted to sue in this court otherwise than tudor the name of tke manager, and {respectfully contend that the law as applied to foreigners must also be applied to Chinese plaintiffs. In the present ease, plaintiffs ave not registered, and according to law, they ought to have been registered, and their failure s0 to do prevents the alleged purchase. from any legal force. Moreover, Wong Yung-kong was closely connected with Van Zang-chang, and, the simple addition of iwo small Chinese characters to the hong name cannot alter oF change the proprietorship, unless such contention is supported by. strong additional evidence, showing clearly that a dona fide transaction has taken place."
After further argument, the Court reserved judgment on this interest ing and) important point until. Thursday, Compradore to be Sent to Canton, im-kee, former compradore Stegar & Ca., a German furni doing business in Shameen, Canton, and his wife were brought before Jude Chow in the Shanghai Special Distviet Court om October 6 on a chane of emberzlinge $25,000 belonging to his employers.
Last week, two other men, the assistant compradore who said he was sent by Chen to Shanghai to oven n moving picture house and a former office boy, were brought before the Court in connection with the same charge and they were bande over to the Greater Shanghai Bureau of Public Safety to te sent. to Canton for trial, Following last week's arrests, said Dr. Paul Py Y. Ru, Assistant Muni cipal Advocate, who prosecuted yesterday, Det. Sgt. Barton and his assistants of the Central Police Station detective, stof, kept wated on room 820 of the Oriental Hotet in the hope that the place might visited by the present accused. Theiv efforts were rewarded for Chen and his wife went inst where they were arrested, Chen ad-nitted 10 the police that he had embezzled the money' and said. that was living in the Hongkew Hotel. In his possession was found a native bank order for $2,000.
At Louza Police Station, the woman was searched and nothing was found on her so she was sent to the Hovee of Detention, where ancther search was made by the sgaoters, who found $8,000 in Hong Kong & Shanghai Bank notes, all torn up. She was questioned by the police, said Dr. Ru, and she stated that she had brought $10,000 to mnzhai, When she was taken to Loves Station, she had torn up all of the notes with the exception of 3000, sshich ske dit not have time fu" destroy. "Apparently, counsel said, she had hidden these inher Shoes and, they bad been overlooked cat, 5 when the' frst, search was carried Chen was questioned by Judge Chow and he stated that the charge against him was quite, covicet Iba embezzled the money' byt. vite was absolutely: ignorant of The Coprt ardeted. that both cried should ye handed over to ther Shanghai Bureau of Publla
Text read from the printed page and cleaned; old type leaves the occasional error.