The action brought against Mrs. Judah Azachee, on charges of having created a disturbance during the service in the Jewish Synagogue, 500 Seymour Road, on September 14, which came up'for hearing in Police Court on Friday, was adjourned by Mr. C. H. Haines, the Registrar, in order that Mr. Azachee could bring 2 doctor's certificate stating that his wife was il in hospital.
Mr. Azachee, clad in a suit of blue overalls, told the court that his wife suddenly became ill on Thursday, and had to be taken to hospital. Advising him that in such a case it was necessary for him to bring a doctor's certificate to this effect, the Registrar adjourned the case, 3
Goncern unfit further" ection by the Mr. A. Kelsel requested the Court to appoint a trustee "lo protect the asset of the firm from being dis-Sipated." Directors of the defendant firm, he continued, were majority Shareholders and the minority shareholders had no opportunity to ascertain conditions and facts of this concern. After the preliminary inves tigation, the China Trade Act gistrar had learned hat certain. ma ferity shareholders id. not hold the Majority shares at al. Some minority Shareholders had served on the board but had been "kicked of" he said.
The allegations were interrupted by the Judge, who said he was reading the contents of the complaint and the Court could not do anything at pre-Sent beyond giving a restraining order.
Miss Smith alleged that the assets of the firm were under the control fof a non-American, and thet the Court had no jurisdiction over him.
This was vigorously denied by Mr. Allman.
After the Judge had issued the restraining orders, Miss Smith told the Court that she had received a request from a group of shareholders to restrain Mr. Truman Johnson from leaving Shanghai.
Mr. Felthan Watson, U. S. District] Attorney, reported that he had received a letter from Mr- Johnson with the information that the reservations made in the s. President Cleveland, due to sail on Saturday, had been cancelled.
The Court's order follows—This "hearing, on an order show cause why a trustee should not be appointed for the company, was adjourned to October 2, at the request of Mr. N. F. Allman, who said he had been asked to represent the defendant firm only the might pre-
Miss Smith pointed out that a stockholders meeting was being convened the afternoon and that Court action was necessary.
"This matter came on regularly to bbe heard on the order to show cause Voting stock also at $10 local currency per share.
'The complaint continued that the company issued 3,840 common "AY [shares at $10 each' and 300 common "B" shares at $10 each, aggregating total outstanding capital stock of '$41.400 lawful Shanghai currency, of which approximately $35,049.92 were Issued in direct violation of sections and 8 of the China Trade Act. Specificaly, it is further alleged in the Complaint that this company issued 1,000 common "A" shares to Mr. Truman Johnson on April 18, 1092; 1.540 common "A" shares to Truman ind Eva A. Johnson on June 14, 1933; 1,000 common "A" shares to Mr. RIN, Vanderburgh on April 30, 1932; '200 common "B" shares to Mr. Guy Stockton on June 26, 1933, 200 "A" shares to Mr. H. TT. Chang on May 1, 1033; 100 "B shares to Mr. Henry Killam Murphy on July 13, 1988: 100 shares to. Mr. J. K. Yoen, on October 1. 1932.
In all these cases, according to the complaint, promissory notes were given in payment for the shares, and none of the promissory notes has been paid.
An answer was fled on Monday by Mr. N. F. Allman, counsel for the Asia Electric Ca., to the petition of Miss A. Viola Smith, China Trade Act Registrar, for the appointment by the U. Court for China of a trustee for the company. The answer contains a complete denial that the China Trade Act has been violated.
The Asia Electric Co.rin its answer, admits that shares have been issued on promissory notes, but alleges that these shares either are being held in les crow and as security for the put chase price, or that they never hay been delivered, and that some of the promissory notes have been partially paid up, and are still being paid, together with interest. The company denies concealing this from the Registrar or anyone else, and states that full details appeared on the balance sheet and annual reports.
Tt admits that stock was voted at the shareholders meetings, and al-of real estate mortgages, the company has loaned approximately $36,000,000, and has re-mortgaged the larger por-lon of these mortgages for about $28,480,000.
'Owing io the existing acute busi ness depression, the majority of the mortgagors are' now defaulting, and the company is only collecting 7 per cent. of the interest due, with the result that its income from this source is much less than the amount of interest payable to its mortgages, [Cash balance on hand is approximate-$00,000, There being no active market at the moment for real estate, the company states that, if it adopted the Policy of instituting foreclosure proceedings, this mortgaged real estate [security would bring much less. than the amount of the mortgage index! Jedness of principal and interest, with resultant heavy losses to, and sacrifc of, the interests of shareholders, de: venture holders, and creditors, cluding a sacrifice of the interests of mortgagee creditors, and similar losses and sacrifice would result from the present liquidation of the com-any's assets and winding-up of its business.
Inasmuch as the China Realty Ca, is, therefore, unable to meet its debts '25 they mature, a meeting of the board of directors was held on Wednesday, when a resolution was passed authorizing Mr. C. F. Wolsiffer to institute proceedings in the U. S. JCourt for China on the company's behalf as outlined above. closing, the petition states that the company desires to effect a plan Jor re-organization, and that a plan or plans will be' submitted to the [Court for consideration, Tt is hoped that, ultimately, a plan of re-organization will be approved by the Court, Letters were despatched that day to holders. of the 7 per cent. frst mortgage debentures and 8 per cent. debentures, notifying them of this step, and enclosing a copy of a letter ent' to all China Realty Ca, shareholders, which, summarized, ran:—In March, 1635, the bor of dir-actors resigned, with the exception
Text read from the printed page and cleaned; old type leaves the occasional error.