Mr. George D. Happer, who was one of the witnesses called yesterday, said the corporation was formed on August 1, 1936, the organization meeting being held in his office in Shanghai. He said he had devoted as much time to the work as possible, and he had also full power to deal with the business of the fi The company, he said, was now working in full time and had good prospects for the future, Revocation of the firm's charter or dissolution, in his opinion, would ruin all sales contacts of the firm and benefit noone.
Mr. S. C. Canallakis told the Court that the business of the tobacco firm was built up during the past 20 years almost on nothing. The entire bu ress belonged to the family and some notion arose between him and his brother when the latter wanted to put his sons into the business, while he himself advocated that the boys should first get some business discipline elsewhere. While he was bu ing tobacco in Tsingtao, his brother esigned from the firm.
Referring to the $400,000 listed in the balance sheet as liabilities, he said they were part of the capital of the family. He did not know the meaning of the word "debentures." The firm owed money to no-one, No debentures were issued, he said.
Both Mr. Happer and Allman had done everything to help the business, he said. The firm was using 90 per cent. American tobacco, and one American machine and some acessenes were also purchased.
Miss A. Viola Smith, was also called to give evidence.
Mr. N. F. Allman appeared for the defence, while Mr. A. R. Morrison, of Tientsin, appeared for Mr. M. S. Canallakis, brother of Mr. C. S.
Canallakis, and who. is an intervener in the case, asking for the appointment of a trustee.
The case was adjourned to this morning for arguments by the respective attorneys.
Text read from the printed page and cleaned; old type leaves the occasional error.